#United States #Cincinnati #Cincinnati Financial #Q3 Earnings #Insurance Performance

Cincinnati Financial Reports Strong Third-Quarter Results for 2025

Cincinnati Financial Corporation (Nasdaq: CINF) has unveiled impressive financial results for the third quarter of 2025. The company reported net earnings of $1.122 billion, translating to $7.11 per share, indicating a substantial rise from $820 million, or $5.20 per share, recorded in the same quarter of the previous year. This strong financial performance was underpinned by a notable after-tax increase of $675 million in the fair value of equity investments still held by the company.

The non-GAAP operating income for the third quarter stood at $449 million, or $2.85 per share. This marks a significant uptick from $224 million, or $1.42 per share, in the third quarter of 2024. The robust increase, totaling $225 million, was supported by a favorable impact of $152 million due to a decrease in after-tax catastrophe losses, demonstrating effective risk management strategies in place within the organization.

Revenue Performance

Cincinnati Financial reported earned premiums of $2.567 billion for the third quarter, up 12% from $2.297 billion in the same period of 2024. The total revenues for the quarter reached $3.726 billion, which is a 12% increase year-over-year, up from $3.320 billion in Q3 2024. The steady growth in earned premiums showcases the company's successful premium growth initiatives and pricing strategies, which have allowed them to enhance their market share amidst a competitive landscape.

In terms of investment, Cincinnati Financial saw a 14% increase in net investment income, rising to $295 million from $258 million a year earlier. This improvement reflects higher investment returns, particularly in fixed-income securities, which have contributed positively to the financial bottom line.

Underwriting Results

Cincinnati's property casualty insurance segment recorded a significant improvement in underwriting performance, with the combined ratio dropping to 88.2% from 97.4% in Q3 2024. This underlines the company's effective underwriting practices and risk assessment strategies, as it marks the best third-quarter result since 2015. The positive outcome comes despite catastrophe-related costs impacting results, which had a 3.7 percentage point effect on the combined ratio.

The company's net written premiums increased by 9% in the third quarter of 2025, driven by strategic price increases and a greater volume of insured risks. New business written premiums totaled $356 million for the quarter, a 12% decrease year-over-year, suggesting a more disciplined approach to underwriting as the firm prioritizes profitability over volume.

Strategic Developments and Future Outlook

President and CEO Stephen M. Spray commented on the results, emphasizing that the more than doubling of non-GAAP operating income is a result of both underwriting profits and a 14% increase in investment income compared to the previous year's third quarter. Spray also highlighted that Cincinnati Financial remains committed to balancing growth and profitability, investing in people and technology to further enhance their market position.

Cincinnati Financial has ambitious plans for the remainder of 2025, focusing on maintaining its underwriting discipline while exploring additional opportunities to grow its market share. The company also continues to foster relationships with independent agents, ensuring they are well-supported with analytics and risk management solutions, which are essential for competing effectively.

As the company moves towards the final quarter of the year, it aims to achieve its long-term target for combined ratios while continuing to deliver value to shareholders. The book value per share reached an all-time high of $98.76 by September 30, 2025, reflecting a 12% increase from $88.32 at the year's end. This growth is complemented by a value creation ratio of 13.8% for the first nine months of 2025, surpassing their average annual target of 10% to 13%.