Fourth-quarter 2025 net income of $676 million, or $4.29 per share, compared with $405 million, or $2.56 per share, in the fourth quarter of 2024, after recognizing a $145 million fourth-quarter 2025 after-tax increase in the fair value of equity securities still held.
Full-year 2025 net income of $2.393 billion, or $15.17 per share, compared with $2.292 billion, or $14.53 per share, in 2024.
$34 million or 7% increase in fourth-quarter 2025 non-GAAP operating income* to $531 million, or $3.37 per share, compared with $497 million, or $3.14 per share, in the fourth quarter of last year.
$57 million or 5% increase in full-year 2025 non-GAAP operating income to $1.254 billion, or $7.95 per share, up from $1.197 billion, or $7.58 per share, with an increase of $112 million in after-tax net investment income partially offset by a decrease of $62 million in after-tax property casualty underwriting profit.
$271 million increase in fourth-quarter 2025 net income, compared with fourth-quarter 2024, including the effects of after-tax net increases of $237 million from net investment gains, $21 million from property casualty underwriting profit and $20 million from investment income.
$102.35 book value per share at December 31, 2025, up $13.24 since year-end 2024.
18.8% value creation ratio for full-year 2025, compared with 19.8% for 2024.
Financial Highlights
(Dollars in millions except per share data)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
% Change
2025
2024
% Change
Revenue Data
Earned premiums
$ 2,592
$ 2,365
10
$ 9,983
$ 8,889
12
Investment income, net of expenses
305
280
9
1,165
1,025
14
Total revenues
3,091
2,538
22
12,631
11,337
11
Income Statement Data
Net income
$ 676
$ 405
67
$ 2,393
$ 2,292
4
Investment gains and losses, after-tax
145
(92)
nm
1,139
1,095
4
Non-GAAP operating income*
$ 531
$ 497
7
$ 1,254
$ 1,197
5
Per Share Data (diluted)
Net income
$ 4.29
$ 2.56
68
$ 15.17
$ 14.53
4
Investment gains and losses, after-tax
0.92
(0.58)
nm
7.22
6.95
4
Non-GAAP operating income*
$ 3.37
$ 3.14
7
$ 7.95
$ 7.58
5
Book value
$ 102.35
$ 89.11
15
Cash dividend declared
$ 0.87
$ 0.81
7
$ 3.48
$ 3.24
7
Diluted weighted average shares outstanding
157.5
158.1
0
157.7
157.8
0
*
The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures defines and reconciles measures presented in this release that are not based on U.S. Generally Accepted Accounting Principles.
Forward-looking statements and related assumptions are subject to the risks outlined in the company's safe harbor statement.
Insurance Operations Highlights
85.2% fourth-quarter 2025 property casualty combined ratio, up from 84.7% for the fourth quarter of 2024. Full-year 2025 property casualty combined ratio at 94.9%, with net written premiums up 9%.
5% growth in fourth-quarter 2025 net written premiums, including price increases, premium growth initiatives and a higher level of insured exposures.
$331 million fourth-quarter 2025 property casualty new business written premiums. Agencies appointed since the beginning of 2024 contributed $33 million or 10% of total fourth-quarter new business written premiums.
$31 million of fourth-quarter 2025 life insurance subsidiary net income and 3% growth in fourth-quarter 2025 term life insurance earned premiums. Full-year 2025 net income rose 16%.
Investment and Balance Sheet Highlights
9% or $25 million increase in fourth-quarter 2025 pretax investment income, including a 10% increase in bond interest income.
12% full-year increase in fair value of total investments at December 31, 2025, including a 12% increase for the bond portfolio and a 13% increase for the stock portfolio.
$5.568 billion parent company cash and marketable securities at year-end 2025, up 7% from a year ago.
Resiliency Led to Insurance ProfitabilityStephen M. Spray, president and chief executive officer, commented: "After beginning the year with the worst catastrophe loss in our company's history, it took persistence and focus to record a 4% increase in full-year net income of $2.393 billion and $1.254 billion in full-year 2025 non-GAAP operating income, a 5% increase compared with 2024.
"For the fourth quarter, our insurance operations produced a combined ratio of 85.2%, one of our best fourth quarters in the last decade. On a full-year basis, our combined ratio of 94.9% is comfortably within our long-term annual average goal of 92% to 98% and marks 14 consecutive years of achieving an underwriting profit.
"Importantly, we continued seeing steady progress in our current accident year combined ratio before catastrophe losses. That measure improved 0.4 percentage points to 86.1% for 2025, even with the unfavorable effects of $52 million in reinsurance reinstatement premiums related to the California wildfires.
"Our life insurance subsidiary also contributed nicely, recording a 16% increase in net income to $106 million."
Balancing Pricing Discipline and Growth"Total property casualty net written premiums increased 9% for the year, crossing $10 billion for the first time in our company's 75-year history. While new business written premiums slowed in total for the fourth quarter and the full year, our commercial business recorded 4% growth in standard and 17% growth in excess and surplus lines new business over the course of 2025.
"Looking ahead, we know that it will take continued pricing discipline and product innovation, supported by the ongoing appointment of new agencies, to keep up the profitable growth of our insurance business.
"Our 189 commercial lines field marketing representatives work closely with the agencies in their territories, developing a deep understanding of the market conditions unique to that community. Leaning on their colleagues in a variety of disciplines, including excess and surplus lines, management liability, life insurance and loss control, they can craft comprehensive risk management programs enhanced by the ease of doing business through the Cincinnati family of companies.
"We believe that our hallmarks of strong agency relationships and fast, fair and empathetic claims service, will continue to encourage appointed agents to place their high-quality business with Cincinnati Insurance."
Record Book Value"At December 31, 2025, our book value per share climbed 15% from a year ago, to $102.35, bolstered by a 14% increase in net pretax investment income, reaching nearly $1.2 billion for the year.
"Consolidated cash and total investments reached more than $33 billion. Our ample capital allows us to execute our long-term strategies and, at the same time, continue to pay dividends to shareholders. Our value creation ratio for 2025, which considers the dividends we pay as well as the growth in book value, was 18.8%, ahead of our 10% to 13% average annual target for this measure."
Insurance Operations Highlights
Consolidated Property Casualty Insurance Results
(Dollars in millions)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
% Change
2025
2024
% Change
Earned premiums
$ 2,508
$ 2,284
10
$ 9,653
$ 8,568
13
Fee revenues
3
3
0
14
12
17
Total revenues
2,511
2,287
10
9,667
8,580
13
Loss and loss expenses
1,397
1,255
11
6,335
5,436
17
Underwriting expenses
736
680
8
2,831
2,564
10
Underwriting profit
$ 378
$ 352
7
$ 501
$ 580
(14)
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Loss and loss expenses
55.7 %
55.0 %
0.7
65.6 %
63.5 %
2.1
Underwriting expenses
29.5
29.7
(0.2)
29.3
29.9
(0.6)
Combined ratio
85.2 %
84.7 %
0.5
94.9 %
93.4 %
1.5
% Change
% Change
Agency renewal written premiums
$ 1,939
$ 1,759
10
$ 8,023
$ 7,080
13
Agency new business written premiums
331
382
(13)
1,474
1,541
(4)
Other written premiums
91
102
(11)
585
622
(6)
Net written premiums
$ 2,361
$ 2,243
5
$ 10,082
$ 9,243
9
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Current accident year before catastrophe losses
55.3 %
51.0 %
4.3
56.8 %
56.6 %
0.2
Current accident year catastrophe losses
1.2
5.0
(3.8)
10.8
9.6
1.2
Prior accident years before catastrophe losses
(0.6)
(0.0)
(0.6)
(1.3)
(1.6)
0.3
Prior accident years catastrophe losses
(0.2)
(1.0)
0.8
(0.7)
(1.1)
0.4
Loss and loss expense ratio
55.7 %
55.0 %
0.7
65.6 %
63.5 %
2.1
Current accident year combined ratio before
catastrophe losses
84.8 %
80.7 %
4.1
86.1 %
86.5 %
(0.4)
5% and 9% growth in fourth-quarter and full-year 2025 property casualty net written premiums, reflecting price increases, premium growth initiatives and a higher level of insured exposures. The contribution to growth from Cincinnati Re® and Cincinnati Global Underwriting Ltd.SM in total was less than 1 percentage point for both the fourth-quarter and full-year.
13% and 4% decrease in fourth-quarter and full-year 2025 new business premiums written by agencies, compared with a year ago. The full-year decrease included an $87 million increase in standard market property casualty production from agencies appointed since the beginning of 2024.
420 new agency appointments in full-year 2025, including 71 that market only our personal lines products.
0.5 percentage-point fourth-quarter 2025 combined ratio increase, compared with 2024, including a decrease of 3.0 points for losses from catastrophes.
1.5 percentage-point full-year 2025 combined ratio increase, including an increase of 1.6 points for losses from catastrophes.
0.4 percentage-point improvement in full-year 2025 current accident year combined ratio before catastrophe losses, including an unfavorable 0.5 points for the net effect of $52 million for reinsurance treaty reinstatement premiums related to the January 2025 wildfires in southern California.
0.8 and 2.0 percentage-point fourth-quarter and full-year 2025 benefit from favorable prior accident year reserve development of $20 million and $196 million, compared with 1.0 points or $25 million for fourth-quarter 2024 and 2.7 points or $236 million of favorable development for full-year 2024.
0.2 percentage-point increase, to 56.8%, for the full-year 2025 ratio of current accident year losses and loss expenses before catastrophes, including an increase of 1.4 points for the portion estimated as reserves for claims incurred but not reported (IBNR) and a decrease of 1.2 points for the case incurred portion.
0.6 percentage-point decrease in full-year 2025 underwriting expense ratio, compared with the same period of 2024, primarily due to growth in earned premiums outpacing growth in various expenses.
Commercial Lines Insurance Results
(Dollars in millions)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
% Change
2025
2024
% Change
Earned premiums
$ 1,243
$ 1,160
7
$ 4,863
$ 4,486
8
Fee revenues
1
1
0
5
4
25
Total revenues
1,244
1,161
7
4,868
4,490
8
Loss and loss expenses
721
624
16
2,970
2,795
6
Underwriting expenses
379
356
6
1,459
1,384
5
Underwriting profit
$ 144
$ 181
(20)
$ 439
$ 311
41
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Loss and loss expenses
57.9 %
53.8 %
4.1
61.1 %
62.3 %
(1.2)
Underwriting expenses
30.5
30.7
(0.2)
30.0
30.9
(0.9)
Combined ratio
88.4 %
84.5 %
3.9
91.1 %
93.2 %
(2.1)
% Change
% Change
Agency renewal written premiums
$ 1,039
$ 1,001
4
$ 4,350
$ 4,087
6
Agency new business written premiums
180
179
1
768
741
4
Other written premiums
(34)
(37)
8
(120)
(138)
13
Net written premiums
$ 1,185
$ 1,143
4
$ 4,998
$ 4,690
7
Ratios as a percent of earned premiums:
Pt. Change
Pt. Change
Current accident year before catastrophe losses
59.6 %
53.8 %
5.8
59.9 %
59.3 %
0.6
Current accident year catastrophe losses
0.5
1.8
(1.3)
3.9
6.1
(2.2)
Prior accident years before catastrophe losses
(2.3)
(0.9)
(1.4)
(2.3)
(2.4)
0.1
Prior accident years catastrophe losses
0.1
(0.9)
1.0
(0.4)
(0.7)
0.3
Loss and loss expense ratio
57.9 %
53.8 %
4.1
61.1 %
62.3 %
(1.2)
Current accident year combined ratio before
catastrophe losses
90.1 %
84.5 %
5.6
89.9 %
90.2 %
(0.3)
4% and 7% growth in fourth-quarter and full-year 2025 commercial lines net written premiums, primarily due to higher agency renewal written premiums. Fourth-quarter and full-year 2025 commercial lines average renewal pricing increased in the mid-single-digit percent range.
1% and 4% increase in fourth-quarter and full-year 2025 new business written premiums, as we continue to carefully underwrite each policy in a highly competitive market.
3.9 percentage-point fourth-quarter 2025 combined ratio increase, compared with 2024, including a decrease of 0.3 points for losses from catastrophes.
2.1 percentage-point full-year 2025 combined ratio improvement, including a decrease of 1.9 points for losses from catastrophes.
2.2 and 2.7 percentage-point fourth-quarter and full-year 2025 benefit from favorable prior accident year reserve development of $27 million and $130 million, compared with 1.8 points or $21 million for fourth-quarter 2024 and 3.1 points or $138 million of favorable development for full-year 2024.
0.6 percentage-point increase, to 59.9%, for the full-year 2025 ratio of current accident year losses and loss expenses before catastrophes, including an increase of 0.6 points in the ratio for current accident year losses of $2 million or more per claim.
Personal Lines Insurance Results
(Dollars in millions)
Three months ended December 31,
Twelve months ended December 31,
2025
2024
% Change
2025
2024
% Change
Earned premiums
$ 859
$ 726
18
$ 3,199
$ 2,623
22
Fee revenues
1
1
0
5
5
0
Total revenues
860
727
18
3,204
2,628
22
Loss and loss expenses
468
374
25
2,419
1,795
35
Underwriting expenses
231
208
11
896
762
18
Underwriting profit (loss)
$ 161
$ 145
11
$ (111)
$ 71
nm
