{"schemaVersion":1,"research":true,"symbol":"cinf","name":"Cincinnati Financial","topic":"moat","path":"/stock/cinf/moat","status":"published","version":5,"updatedAt":"2026-10-18T14:05:34.935Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"none","summary":"Cincinnati Financial demonstrates established agency distribution, disciplined underwriting and realized renewal pricing, but weak protection from competition. Nonexclusive agents sell competing products, stricter terms reduce retention, and pricing has softened in several lines. Fourteen consecutive years of underwriting profit support strong execution, without establishing a durable structural advantage. Financial resources support the franchise, while catastrophe, reserving and equity-market exposures constrain resilience.","advantages":[{"mechanism":"intangible_assets","claim":"Established agency relationships and underwriting expertise provide a current distribution capability, but the supplied evidence does not establish a defensible moat. Management describes these capabilities as competitive advantages; demonstrated profitable growth supports their usefulness, while nonexclusive distribution limits protection.","durability":"Fourteen consecutive years of underwriting profit and five-year premium growth above the industry support persistence of operating competence. They do not demonstrate exclusive access, customer dependence or an enduring advantage over the named peers.","risks":"Agents can place business elsewhere. Stricter renewal terms already reduce retention, E&S pricing increases have slowed, and personal-lines new business has contracted sharply. These outcomes do not establish that all lost business was competitively attractive.","invalidation":"The limited franchise-strength thesis would weaken if renewal demand contracted across commercial, personal and E&S lines despite competitive terms, or repeated adverse reserve development erased underwriting profitability. The no-moat conclusion would warrant reconsideration if sustained superior results were accompanied by demonstrated customer dependence or differentiated pricing and retention through a softer market.","competitors":["The Allstate Corporation","CNA Financial Corporation","Hanover Insurance Group Inc.","Hartford Financial Services Group Inc.","Markel Group Inc.","Selective Insurance Group Inc.","The Travelers Companies Inc.","United Fire Group Inc.","W.R. Berkley Corporation"],"evidenceIds":["q24","q623","q482","q667","q668","q669","q670","q671"],"counterEvidenceIds":["q58","q59","q401","q429","q421"]}],"evidence":[{"id":"q24","sourceId":"filing-1","location":"Business — management's stated competitive advantages","excerpt":"Three competitive advantages distinguish our company, positioning us to build shareholder value and to be successful overall: •Commitment to our professional independent insurance agencies and to their continued success •Financial strength to fulfill our promises and be a consistent market for our agents’ business, supporting stability and confidence •Operating structure that supports local decision making, showcasing our claims excellence and allowing us to balance growth with underwriting discipline Management and our board of directors has developed an agency-focused strategy that we believe positions our company for long-term success and value creation, while managing difficult economic, market or pricing cycles."},{"id":"q58","sourceId":"filing-1","location":"Risk factors — nonexclusive agency distribution","excerpt":"We market our main products, insurance policies for businesses and individuals, through independent, nonexclusive insurance agents."},{"id":"q59","sourceId":"filing-1","location":"Risk factors — agents sell competitors' products","excerpt":"These agents sell our competitors’ products and are not obligated to promote our products."},{"id":"q129","sourceId":"filing-1","location":"MD&A — 2025 E&S renewal pricing","excerpt":"Average renewal estimated price increases were in the high-single-digit range during 2025."},{"id":"q136","sourceId":"filing-1","location":"Liquidity and capital resources — subsidiary dividend limit","excerpt":"During 2026, our lead insurance subsidiary may pay a maximum of $975 million in dividends to our parent company without regulatory approval."},{"id":"q145","sourceId":"filing-1","location":"Liquidity and capital resources — reinsurance recoverability","excerpt":"We also monitor the financial condition of our reinsurers because their insolvency could jeopardize a portion of our $655 million reinsurance recoverable asset at December 31, 2025."},{"id":"q146","sourceId":"filing-1","location":"Liquidity and capital resources — property casualty fixed-maturity duration","excerpt":"The effective duration of our consolidated property casualty fixed-maturity portfolio was 5.8 years at year-end 2025."},{"id":"q147","sourceId":"filing-1","location":"Liquidity and capital resources — claims reserve duration","excerpt":"By contrast, the duration of our loss and loss expense reserves was approximately 3.6 years."},{"id":"q150","sourceId":"filing-1","location":"Reserving — carried reserves and management's reasonable range","excerpt":"Range of Reasonable Reserves The company established a reasonably likely range for net loss and loss expense reserves of $10.073 billion to $11.141 billion at year-end 2025, with the company carrying net reserves of $11.012 billion."},{"id":"q206","sourceId":"filing-1","location":"Business — qualitative regulatory RBC disclosure","excerpt":"At year-end 2025 and 2024, risk-based capital (RBC) for our standard market property casualty insurance, excess and surplus lines insurance and life insurance subsidiaries was strong, far exceeding regulatory requirements."},{"id":"q212","sourceId":"filing-1","location":"Business — life statutory adjusted risk-based surplus to liabilities","excerpt":"•We ended 2025 with a 17.6% ratio of life statutory adjusted risk-based surplus to liabilities, a key measure of life insurance company capital strength."},{"id":"q255","sourceId":"filing-1","location":"Commercial lines — unfavorable reserve development","excerpt":"Net unfavorable reserve development on prior accident years of $41 million for commercial auto and $21 million for commercial casualty was recognized during 2025."},{"id":"q323","sourceId":"filing-1","location":"Note 15 — affiliated agency commissions","excerpt":"We paid certain officers and directors, or insurance agencies of which they are shareholders, commissions of $11 million, $10 million and $9 million on premium volume of $60 million, $55 million and $51 million for 2025, 2024 and 2023, respectively."},{"id":"q348","sourceId":"filing-2","location":"Condensed consolidated balance sheets — June 30, 2026","excerpt":"Financial Statements (unaudited) Cincinnati Financial Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Dollars in millions, except per share data) June 30, December 31, 2026 2025 Assets Investments Fixed maturities, at fair value (amortized cost: 2026—$19,280; 2025—$18,304) $ 18,954 $ 18,123 Equity securities, at fair value (cost: 2026—$4,287; 2025—$4,155) 13,194 12,694 Short-term investments, at fair value (amortized cost: 2026—$143; 2025—$148) 142 148 Other invested assets 863 818 Total investments 33,153 31,783 Cash and cash equivalents 1,750 1,431 Investment income receivable 252 235 Finance receivable 143 146 Premiums receivable 3,546 3,142 Reinsurance recoverable 633 655 Prepaid reinsurance premiums 124 71 Deferred policy acquisition costs 1,442 1,344 Land, building and equipment, net, for company use (accumulated depreciation: 2026—$376; 2025—$367) 211 219 Other assets 981 995 Separate accounts 996 981 Total assets $ 43,231 $ 41,002 Liabilities Insurance reserves Loss and loss expense reserves $ 12,479 $ 11,507 Life policy and investment contract reserves 2,986 2,992 Unearned premiums 5,724 5,254 Other liabilities 1,638 1,638 Deferred income tax 1,861 1,833 Note payable 17 25 Long-term debt and lease obligations 859 861 Separate accounts 996 981 Total liabilities 26,560 25,091 Commitments and contingent liabilities (Note 12) Shareholders' Equity Common stock, par value—$2 per share; (authorized: 2026 and 2025—500 million shares; issued: 2026 and 2025—198.3 million shares) 397 397 Paid-in capital 1,582 1,561 Retained earnings 17,958 16,719 Accumulated other comprehensive loss (135) (34) Treasury stock at cost (2026—44.9 million shares and 2025—42.9 million shares) (3,131) (2,732) Total shareholders' equity 16,671 15,911 Total liabilities and shareholders' equity $ 43,231 $ 41,002 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements."},{"id":"q349","sourceId":"filing-2","location":"Consolidated shareholders' equity — earnings, distributions, compensation and shares","excerpt":"Cincinnati Financial Corporation Second-Quarter 2026 10-Q Page 5 Table of Contents Cincinnati Financial Corporation and Subsidiaries Condensed Consolidated Statements of Shareholders' Equity (Dollars in millions) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Common Stock Beginning of period $ 397 $ 397 $ 397 $ 397 Share-based awards — — — — End of period 397 397 397 397 Paid-In Capital Beginning of period 1,561 1,511 1,561 1,502 Share-based awards 7 4 (10) (3) Share-based compensation 12 10 27 25 Other 2 3 4 4 End of period 1,582 1,528 1,582 1,528 Retained Earnings Beginning of period 16,848 14,644 16,719 14,869 Net income 1,255 685 1,529 595 Dividends declared (145) (136) (290) (271) End of period 17,958 15,193 17,958 15,193 Accumulated Other Comprehensive Loss Beginning of period (185) (271) (34) (309) Other comprehensive income (loss) 50 22 (101) 60 End of period (135) (249) (135) (249) Treasury Stock Beginning of period (2,907) (2,563) (2,732) (2,524) Share-based awards 6 4 16 10 Shares acquired - share repurchase authorization (215) — (394) (42) Shares acquired - share-based compensation plans (13) (10) (19) (13) Other (2) 1 (2) 1 End of period (3,131) (2,568) (3,131) (2,568) Total Shareholders' Equity $ 16,671 $ 14,301 $ 16,671 $ 14,301 (In millions, except per common share) Common Stock - Shares Outstanding Beginning of period 154.6 156.3 155.4 156.4 Share-based awards 0.2 0.1 0.5 0.3 Shares acquired - share repurchase authorization (1.3) — (2.4) (0.3) Shares acquired - share-based compensation plans (0.1) (0.1) (0.1) (0.1) End of period 153.4 156.3 153.4 156.3 Dividends declared per common share $ 0.94 $ 0.87 $ 1.88 $ 1.74 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements."},{"id":"q350","sourceId":"filing-2","location":"Consolidated cash flows — first six months of 2026","excerpt":"Cincinnati Financial Corporation Second-Quarter 2026 10-Q Page 6 Table of Contents Cincinnati Financial Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (Dollars in millions) Six months ended June 30, 2026 2025 Cash Flows From Operating Activities Net income $ 1,529 $ 595 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other 82 93 Investment gains and losses, net (1,231) (392) Interest credited to contract holders 21 22 Deferred income tax expense 57 93 Changes in: Premiums and reinsurance receivable (435) (737) Deferred policy acquisition costs (98) (125) Other assets (20) (65) Loss and loss expense reserves 972 1,069 Life policy and investment contract reserves 40 8 Unearned premiums 470 631 Other liabilities (62) (54) Current income tax receivable/payable 31 (87) Net cash provided by operating activities 1,356 1,051 Cash Flows From Investing Activities Sale, call or maturity of fixed maturities 1,644 1,348 Sale of equity securities 1,195 34 Purchase of fixed maturities (2,584) (2,060) Purchase of equity securities (463) (95) Change in short-term investments, net 9 201 Changes in finance receivables 1 (3) Investment in building and equipment (4) (7) Change in other invested assets, net (48) (32) Net cash used in investing activities (250) (614) Cash Flows From Financing Activities Payment of cash dividends to shareholders (276) (258) Shares acquired - share repurchase authorization (395) (42) Changes in note payable (8) — Proceeds from stock options exercised 10 6 Contract holders' funds deposited 33 31 Contract holders' funds withdrawn (76) (80) Other (75) (82) Net cash used in financing activities (787) (425) Net change in cash and cash equivalents 319 12 Cash and cash equivalents at beginning of year 1,431 983 Cash and cash equivalents at end of period $ 1,750 $ 995 Supplemental Disclosures of Cash Flow Information: Interest paid $ 26 $ 27 Income taxes paid 249 97 Noncash Activities Equipment acquired under finance lease obligations $ 7 $ 12 Share-based compensation 48 26 Other assets and other liabilities 66 254 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements."},{"id":"q374","sourceId":"filing-2","location":"MD&A — second-quarter earnings drivers","excerpt":"Net income for the second quarter of 2026, compared with the second quarter of 2025, increased $570 million, including increases of $657 million in after-tax investment gains and losses and $28 million in after-tax investment income, partially offset by a decrease of $115 million in after-tax property casualty underwriting profit."},{"id":"q377","sourceId":"filing-2","location":"MD&A — first-half earnings drivers","excerpt":"For the first six months of 2026, net income increased $934 million, compared with the first six months of 2025, including increases of $654 million in after-tax investment gains and losses, $211 million in after-tax property casualty underwriting income and $59 million in after-tax investment income."},{"id":"q399","sourceId":"filing-2","location":"MD&A — first-half combined ratio and catastrophe effects","excerpt":"For the first six months of 2026, compared with the 2025 six-month period, our combined ratio decreased by 5.6 percentage points, including a decrease of 5.8 points from catastrophe losses and loss expenses."},{"id":"q401","sourceId":"filing-2","location":"Commercial lines — stricter terms and reduced retention","excerpt":"Conversely, we continue to maintain stricter renewal terms and conditions on policies we believe have relatively weaker pricing, thus retaining fewer of those policies."},{"id":"q403","sourceId":"filing-2","location":"Commercial lines — flat pricing within three-year policies","excerpt":"Cincinnati Financial Corporation Second-Quarter 2026 10-Q Page 45 Table of Contents Our average overall commercial lines renewal pricing change includes the impact of flat pricing for certain coverages within package policies written for a three-year term that were in force but did not expire during the period being measured."},{"id":"q405","sourceId":"filing-2","location":"Commercial lines — casualty and auto renewal pricing","excerpt":"For commercial lines policies that did expire and were then renewed during the second quarter of 2026, we estimate that our average percentage price increases were in the mid-single-digit range for our commercial casualty and commercial auto lines of business."},{"id":"q406","sourceId":"filing-2","location":"Commercial lines — property renewal pricing","excerpt":"For our commercial property line of business we estimate average price increases were in the low-single-digit range."},{"id":"q407","sourceId":"filing-2","location":"Commercial lines — workers' compensation pricing decrease","excerpt":"The estimated average percentage price change for workers' compensation was a decrease in the mid-single-digit range."},{"id":"q417","sourceId":"filing-2","location":"Commercial lines — premium results and combined ratio deterioration","excerpt":"Commercial Lines Insurance Premiums (Dollars in millions) Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % Change Agency renewal written premiums $ 1,146 $ 1,116 3 $ 2,330 $ 2,268 3 Agency new business written premiums 208 200 4 413 403 2 Other written premiums (27) (26) (4) (57) (56) (2) Net written premiums 1,327 1,290 3 2,686 2,615 3 Unearned premium change (76) (78) 3 (194) (224) 13 Earned premiums $ 1,251 $ 1,212 3 $ 2,492 $ 2,391 4 •Combined ratio – The second-quarter 2026 commercial lines combined ratio increased by 11.2 percentage points, compared with the second quarter of 2025, including an increase of 4.9 points in losses from catastrophes."},{"id":"q418","sourceId":"filing-2","location":"Personal lines — first-half realized rate increases","excerpt":"We estimate that premium rates for our personal auto and homeowner lines of business increased at average percentages in the high-single-digit range during the first six months of 2026."},{"id":"q421","sourceId":"filing-2","location":"Personal lines — first-half new business decline","excerpt":"For the first six months of 2026, compared with the same period of 2025, personal lines new business written premiums decreased $114 million, or 43%."},{"id":"q427","sourceId":"filing-2","location":"Personal lines — renewal premiums and underwriting results","excerpt":"Personal Lines Insurance Premiums (Dollars in millions) Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % Change Agency renewal written premiums $ 943 $ 866 9 $ 1,669 $ 1,500 11 Agency new business written premiums 78 141 (45) 154 268 (43) Other written premiums (31) (27) (15) (58) (116) 50 Net written premiums 990 980 1 1,765 1,652 7 Unearned premium change (110) (176) 38 (12) (150) 92 Earned premiums $ 880 $ 804 9 $ 1,753 $ 1,502 17 •Combined ratio – Our personal lines combined ratio for the second quarter of 2026 improved by 2.1 percentage points, compared with second-quarter 2025, including a decrease of 1.6 points in losses from catastrophes."},{"id":"q429","sourceId":"filing-2","location":"E&S — 2026 renewal pricing","excerpt":"For both 2026 periods, excess and surplus lines policy renewals experienced estimated average price increases at percentages in the low-single-digit range."},{"id":"q434","sourceId":"filing-2","location":"E&S — renewal demand and underwriting results","excerpt":"Cincinnati Financial Corporation Second-Quarter 2026 10-Q Page 51 Table of Contents Excess and Surplus Lines Insurance Premiums (Dollars in millions) Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % Change Agency renewal written premiums $ 165 $ 153 8 $ 300 $ 279 8 Agency new business written premiums 67 63 6 125 116 8 Other written premiums (13) (14) 7 (24) (25) 4 Net written premiums 219 202 8 401 370 8 Unearned premium change (30) (28) (7) (32) (34) 6 Earned premiums $ 189 $ 174 9 $ 369 $ 336 10 •Combined ratio – The excess and surplus lines combined ratio improved by 0.6 percentage points for the second quarter and increased 0.1 points for the first six months of 2026, compared with the same periods of 2025."},{"id":"q443","sourceId":"filing-2","location":"Market risk — investment portfolio composition and valuation","excerpt":"(Dollars in millions) At June 30, 2026 At December 31, 2025 Cost or amortized cost Percent of total Fair value Percent of total Cost or amortized cost Percent of total Fair value Percent of total Taxable fixed maturities $ 15,144 63.9 % $ 14,863 46.0 % $ 14,134 62.5 % $ 14,010 45.2 % Tax-exempt fixed maturities 4,136 17.4 4,091 12.7 4,170 18.4 4,113 13.3 Common equities 3,932 16.6 12,883 39.9 3,792 16.8 12,373 40.0 Nonredeemable preferred equities 355 1.5 311 1.0 363 1.6 321 1.0 Short-term investments 143 0.6 142 0.4 148 0.7 148 0.5 Total $ 23,710 100.0 % $ 32,290 100.0 % $ 22,607 100.0 % $ 30,965 100.0 % At June 30, 2026, substantially all of our consolidated investment portfolio, measured at fair value, is classified as Level 1 or Level 2."},{"id":"q451","sourceId":"filing-2","location":"Market risk — fixed-maturity investment-grade share","excerpt":"At June 30, 2026, our investment-grade fixed-maturity securities represented 97.7% of the portfolio based on ratings provided by nationally recognized statistical rating organizations or the Securities Valuation Office of the National Association of Insurance Commissioners."},{"id":"q482","sourceId":"filing-2","location":"Performance measures — five-year growth compared with industry","excerpt":"For the five-year period 2021 through 2025, our growth rate exceeded that of the industry."},{"id":"q485","sourceId":"filing-2","location":"Performance measures — first-half combined ratio and reserve benefit","excerpt":"For the first six months of 2026, our GAAP combined ratio was 98.2%, including 12.8 percentage points of current accident year catastrophe losses partially offset by 2.4 percentage points of favorable loss reserve development on prior accident years."},{"id":"q486","sourceId":"filing-2","location":"Liquidity and capital resources — parent-company assets","excerpt":"At June 30, 2026, we held $5.722 billion of our cash and cash equivalents and invested assets at the parent-company level, of which $5.232 billion, or 91.4%, was invested in common stocks, and $201 million, or 3.5%, was cash or cash equivalents."},{"id":"q488","sourceId":"filing-2","location":"Financial strength — net written premiums to statutory surplus","excerpt":"Another important indicator of financial strength is our ratio of property casualty net written premiums to statutory surplus, which was 1.0-to-1 for the 12 months ended June 30, 2026, matching year-end 2025."},{"id":"q505","sourceId":"filing-2","location":"Liquidity — available credit facility","excerpt":"At June 30, 2026, $383 million was available for future cash management needs as part of the general provisions of the line of credit agreement."},{"id":"q534","sourceId":"filing-3","location":"Proxy summary — actual board composition","excerpt":"The board is now comprised of 14 directors, of which more than 71% are independent and over 35% are diverse based on gender and/or race and ethnicity."},{"id":"q542","sourceId":"filing-3","location":"Governance practices — independent committees","excerpt":"•Fully independent audit, compensation and nominating committees."},{"id":"q561","sourceId":"filing-3","location":"Compensation governance — executive ownership guidelines","excerpt":"•Robust stock ownership guidelines of five times salary for the CEO and three and a half times salary for the other NEOs."},{"id":"q612","sourceId":"filing-3","location":"Governance — existing shareholder rights and 2025 changes","excerpt":"Among others, these practices include: •All directors are elected annually; •A simple majority voting standard applies to uncontested director elections; •Proxy access for director nominees; •Annual shareholder advisory approval of executive compensation program; •Elimination of all supermajority voting provisions from the company’s organizational documents in 2025; •Regular engagement with shareholders to understand their perspectives and concerns on a broad array of topics, including corporate governance, executive compensation and sustainability matters; •The ability of shareholders to recommend nominees to the board or otherwise direct communications to the board pursuant to clearly disclosed instructions."},{"id":"q621","sourceId":"filing-3","location":"Compensation discussion — actual incentive payouts","excerpt":"This performance generated payouts of annual incentive cash compensation at the threshold Page 35 level and payouts of performance-based restricted stock units for our named executive officers at the maximum level."},{"id":"q623","sourceId":"filing-3","location":"2025 business highlights — underwriting profit history","excerpt":"•A property casualty pretax underwriting profit of $501 million, and a combined ratio of 94.9%, marking 14 consecutive years of underwriting profit."},{"id":"q638","sourceId":"filing-3","location":"CEO pay for performance — compensation and reported outcomes","excerpt":"CEO Pay for Performance(1) (Dollars in millions) CEO Pay for Performance 2023 2024 2025 SCT Total Compensation $ 8,381,511 $ 8,784,200 $ 5,943,492 Realized Total Compensation(2) $ 4,594,475 $ 5,694,876 $ 5,515,456 1-Year VCR 19.5 % 19.8 % 18.8 % 3-Year TSR(3) 27.7 % 36.5 % 72.2 % (1)Amounts shown as SCT Total Compensation and Realized Total Compensation are attributed to the CEO as of December 31, which was Mr."},{"id":"q667","sourceId":"filing-3","location":"Compensation peer group — named insurance companies","excerpt":"For 2025, the nine peer companies were: The Allstate Corporation CNA Financial Corporation Hanover Insurance Group Inc."},{"id":"q668","sourceId":"filing-3","location":"Compensation peer group — named insurance company","excerpt":"Hartford Financial Services Group Inc."},{"id":"q669","sourceId":"filing-3","location":"Compensation peer group — named insurance companies","excerpt":"Markel Group Inc. Selective Insurance Group Inc."},{"id":"q670","sourceId":"filing-3","location":"Compensation peer group — named insurance companies","excerpt":"The Travelers Companies Inc. United Fire Group Inc."},{"id":"q671","sourceId":"filing-3","location":"Compensation peer group — company name and competing distribution channels","excerpt":"W.R. Berkley Corporation These nine U.S.-domiciled companies were selected because they generally market their products through the same types of independent insurance agencies that represent our company, and they provide both commercial lines and personal lines of insurance, as we do."},{"id":"q717","sourceId":"filing-3","location":"Appendix A — consolidated earnings and segment underwriting reconciliation","excerpt":"Page 82 Cincinnati Financial Corporation Net Income Reconciliation (Dollars in millions except per share data) Years ended December 31, 2025 2024 Net income $ 2,393 $ 2,292 Less: Investment gains and losses, net 1,442 1,391 Income tax on investment gains and losses (303) (296) Investment gains and losses, after-tax 1,139 1,095 Non-GAAP operating income $ 1,254 $ 1,197 Diluted per share data: Net income $ 15.17 $ 14.53 Less: Investment gains and losses, net 9.14 8.82 Income tax on investment gains and losses (1.92) (1.87) Investment gains and losses, after-tax 7.22 6.95 Non-GAAP operating income $ 7.95 $ 7.58 Life Insurance Reconciliation (Dollars in millions) Years ended December 31, 2025 2024 Net income of life insurance subsidiary $ 106 $ 91 Investment gains and losses, net (6) (7) Income tax on investment gains and losses (1) (1) Non-GAAP operating income 111 97 Investment income, net of expenses (202) (190) Investment income credited to contract holders 127 125 Income tax excluding tax on investment gains and losses, net 29 25 Life insurance segment profit $ 65 $ 57 Page 83 Property Casualty Operations Reconciliation (Dollars in millions) Year ended December 31, 2025 Consolidated Commercial Personal E&S Other* Premiums: Net written premiums $ 10,082 $ 4,998 $ 3,430 $ 729 $ 925 Unearned premiums change (429) (135) (231) (31) (32) Earned premiums $ 9,653 $ 4,863 $ 3,199 $ 698 $ 893 Underwriting profit (loss) $ 501 $ 439 $ (111) $ 85 $ 88 (Dollars in millions) Year ended December 31, 2024 Consolidated Commercial Personal E&S Other* Premiums: Net written premiums $ 9,243 $ 4,690 $ 2,999 $ 654 $ 900 Unearned premiums change (675) (204) (376) (39) (56) Earned premiums $ 8,568 $ 4,486 $ 2,623 $ 615 $ 844 Underwriting profit $ 580 $ 311 $ 71 $ 40 $ 158 Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding."},{"id":"q735","sourceId":"filing-3","location":"Governance — actual compliance with ownership guidelines","excerpt":"As of December 31, 2025, all of our directors and executive officers were in compliance with the guidelines."},{"id":"q753","sourceId":"filing-3","location":"Compensation — existing PSU vesting conditions","excerpt":"PSUs - For the NEOs, the Committee uses PSUs that cliff vest after three years if performance targets are achieved."},{"id":"q760","sourceId":"filing-3","location":"Compensation — recovery provisions","excerpt":"PSUs are subject to recovery under our Policy For The Recovery Of Erroneously Awarded Compensation and other recoupment provisions contained in stock-based compensation plans and grant agreements to enable the company to recover payments under this plan when circumstances warrant."}],"changes":["Retain the previous none verdict: demonstrated underwriting competence does not establish durable protection from competition.","Add explicit financial-strength and capital-allocation assessments using recent statutory, balance-sheet, cash-flow and compensation disclosures.","Identify nine named insurance peers from the proxy's competitive peer-group discussion; their individual competitive performance remains unestablished.","Substantiate management alignment and governance from actual proxy disclosures rather than treating them as missing."],"limitations":["The sources are issuer filings. Reported results and contractual disclosures support numerical grades, while management's statements about competitive superiority remain assertions.","Named competitors are identified through the compensation peer group and its distribution rationale; the passages do not provide comprehensive market coverage or comparable pricing, retention and underwriting outcomes for each competitor.","Renewal premiums demonstrate repeat demand indirectly; pricing, exposure and mix changes prevent inference of policy retention rates or switching costs.","Exact regulatory RBC ratios, their capital denominators and regulatory headroom are absent. Net written premiums to statutory surplus and life statutory adjusted risk-based surplus to liabilities are distinct measures and are not treated as RBC ratios.","Investment returns include market-value movements. Acquisition outcomes and comprehensive risk-adjusted investment performance are absent.","Financial grades use filings dated February 23, March 18 and July 27, 2026, each within 550 days of October 18, 2026. These dates retain dateKind filed; no retrieval date is treated as publication.","The March proxy's proposed special-meeting threshold change is not treated as adopted. Ownership-guideline compliance is disclosed, but detailed individual ownership amounts are not supplied."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":1,"rationale":"Agency distribution is established, but agents are nonexclusive and freely sell competing products. Management's claimed advantages do not establish protected access or differentiated economics.","evidenceIds":["q24","q58","q59"]},{"criterion":"durability","grade":2,"rationale":"Fourteen profitable underwriting years and five-year growth above industry demonstrate persistent competence. Nonexclusive distribution prevents attributing that record to durable competitive protection.","evidenceIds":["q623","q482","q59"]},{"criterion":"customer_dependency","grade":1,"rationale":"Agents have competing alternatives and stricter terms reduce retained policies. Growing renewal premiums demonstrate repeat demand indirectly, rather than dependence.","evidenceIds":["q59","q401","q417","q427","q434"]},{"criterion":"erosion_resilience","grade":1,"rationale":"The franchise remains profitable, but E&S pricing increases slowed from high to low single digits, workers' compensation prices fell, and personal-lines new business declined 43%. Durable insulation from competitive erosion is weak.","evidenceIds":["q129","q429","q407","q421","q485"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":2,"rationale":"Observed outcomes are mixed: personal auto and homeowner rates increased at high-single-digit percentages, commercial casualty and auto at mid-single digits, and property at low single digits, while workers' compensation fell at mid-single digits. These are issuer estimates of realized pricing, not proof of relative pricing superiority.","evidenceIds":["q418","q405","q406","q407","q429"]},{"criterion":"retention","grade":2,"rationale":"Commercial, personal and E&S renewal premiums grew, supporting repeat demand indirectly. Exposure and price effects prevent inference of retention rates, and stricter terms explicitly reduced policy retention.","evidenceIds":["q417","q427","q434","q401"]},{"criterion":"margin_resilience","grade":2,"rationale":"Underwriting remained profitable across 14 years and the first half of 2026. However, 2025 personal lines lost money, second-quarter underwriting weakened, and almost all first-half combined-ratio improvement reflected lower catastrophe effects.","evidenceIds":["q623","q717","q374","q399","q485"]},{"criterion":"contractual_freedom","grade":2,"rationale":"Actual renewal price changes and stricter terms demonstrate meaningful repricing discretion. Flat pricing on certain coverages within three-year contracts constrains its timing, while lost policies constrain commercial freedom.","evidenceIds":["q405","q407","q401","q403"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":3,"rationale":"First-half operating cash flow of $1.356 billion covered $276 million of cash dividends and $395 million of repurchases while cash increased. Equity also increased after distributions. Equity-market exposure limits the strength of the capital buffer.","evidenceIds":["q350","q349","q486"]},{"criterion":"incentive_alignment","grade":3,"rationale":"Executive ownership requirements were met, PSUs use three-year performance vesting and recovery provisions, and actual 2025 payouts varied between threshold annual incentives and maximum performance units. These are implemented arrangements and outcomes, not proposed awards; stock-market performance still influences rewards.","evidenceIds":["q561","q735","q753","q760","q621","q638"]},{"criterion":"execution","grade":3,"rationale":"Fourteen consecutive underwriting profits and above-industry five-year premium growth support demonstrated execution. This assessment uses operating outcomes rather than assumed managerial causation; segment losses and recent underwriting volatility remain counterweights.","evidenceIds":["q623","q482","q717","q374"]},{"criterion":"governance","grade":3,"rationale":"A majority-independent board, independent key committees, annual elections, majority voting and elimination of supermajority provisions support strong governance. Related-party agency commissions create a disclosed conflict to monitor. Proposed 2026 amendments are not credited as adopted.","evidenceIds":["q534","q542","q612","q323"]}]}],"financialAssessments":[{"category":"financial_strength","checks":[{"criterion":"capital_adequacy","grade":2,"rationale":"The filing reports subsidiary RBC exceeding regulatory requirements. The June 2026 property casualty net-written-premiums-to-statutory-surplus ratio was 1.0-to-1; the year-end life statutory-adjusted-risk-based-surplus-to-liabilities ratio was 17.6%. These support adequacy, but exact RBC ratios and headroom are unavailable and these denominators are not interchangeable.","evidenceIds":["q206","q212","q488"]},{"criterion":"liquidity_funding","grade":3,"rationale":"First-half operating cash generation, $1.750 billion of consolidated cash and $383 million of available credit support strong liquidity. Parent cash was $201 million and subsidiary transfers are regulated; the parent investment pool is predominantly common stocks.","evidenceIds":["q350","q505","q486","q136"]},{"criterion":"asset_liability_risk","grade":2,"rationale":"Investment-grade bonds and carried reserves near the upper end of management's estimated range support risk absorption. Counterweights include substantial common-equity exposure, a disclosed year-end property casualty asset/reserve duration mismatch, reinsurance counterparty exposure and adverse commercial auto and casualty reserve development.","evidenceIds":["q451","q150","q443","q146","q147","q145","q255"]},{"criterion":"earnings_resilience","grade":2,"rationale":"Long-running underwriting profitability continued with a 98.2% first-half 2026 combined ratio. Earnings improved, but investment gains drove much of the increase, second-quarter underwriting profit declined, and favorable reserve development supported the first-half result.","evidenceIds":["q623","q485","q377","q374"]}]},{"category":"capital_allocation","checks":[{"criterion":"capital_efficiency","grade":2,"rationale":"Consolidated first-half net income of $1.529 billion against beginning equity of $15.911 billion and ending equity of $16.671 billion supports meaningful accounting returns. Investment gains materially influence those returns; the evidence does not establish superior risk-adjusted or statutory returns on capital.","evidenceIds":["q349","q377"]},{"criterion":"distributions_and_buffers","grade":3,"rationale":"Cash dividends and repurchases were covered by first-half operating cash flow, while cash and shareholders' equity increased. Regulatory compliance and stable premium-to-surplus capacity support the buffer assessment, although quantified RBC headroom is absent.","evidenceIds":["q350","q349","q206","q488"]},{"criterion":"dilution_and_cost","grade":3,"rationale":"Outstanding shares declined from 155.4 million to 153.4 million during the first half despite 0.5 million shares from awards. Compensation costs are disclosed, and financing cash flows show distributions rather than dependence on new equity. Repurchases' economic attractiveness is not established.","evidenceIds":["q349","q350"]},{"criterion":"investment_discipline","grade":2,"rationale":"Actual bond reinvestment, predominantly investment-grade fixed maturities and substantial accumulated equity gains support useful investment execution. Common stocks comprised 39.9% of the disclosed securities portfolio and 91.4% of parent cash and invested assets, exposing capital and reported returns to market fluctuations. Risk-adjusted performance and acquisition outcomes are unestablished.","evidenceIds":["q350","q451","q443","q486"]}]}],"qualityPolicy":"quality-scores-2","sourcePolicy":"issuer-evidence-4","financialAssessmentPolicy":"financial-industry-1","financialSector":"insurance","basisHash":"2b2f38c2dc26eb28164c3429ae0e75ea4898f99ef1a1f05c182f0959d6e42ed0","updatedAt":"2026-10-18T14:05:34.935Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/20286/000002028626000008/cinf-20251231.htm","publishedAt":"2026-02-23","sha256":"e0f750ef6076bde728362e4d1753e38e76cf7420ecde1ebad6b0311bd8f15c16","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/20286/000002028626000045/cinf-20260630.htm","publishedAt":"2026-07-27","sha256":"7e3efbde0ee3a41a9d0bb5baacfba39b71c6fd39f553ff488b575ac23dabb2a3","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/20286/000002028626000015/cinf-20260316.htm","publishedAt":"2026-03-18","sha256":"69915f9cabbed88edcd4e9a7a2dcbddaf0c43abb3aaa9e3e1fc71eda5b890c2b","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/20286/000002028625000009/cinf-20241231.htm","publishedAt":"2025-02-24","sha256":"ddda796b161dfef01bd60393a0c58b7011f440fc4e8b6cba71d40535cb928701","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/20286/000002028624000014/cinf-20231231.htm","publishedAt":"2024-02-26","sha256":"7839c0d4ddbdacbeed08a6f4fc05efd74a13aeb0711b50c101cd1dd2ec14f68d","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/20286/000002028626000026/cinf-20260331.htm","publishedAt":"2026-04-27","sha256":"9884aaac761c31022e73913a372052ea9e5903c83aee82d2b0495e81b2846cd4","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:6623f19740ea3961176bdad4c764b12b6a8240b13adffc2499f83fcd252d0be4","usage":{"input_tokens":88640,"cached_input_tokens":21120,"cache_write_input_tokens":0,"output_tokens":5534,"reasoning_output_tokens":201},"basisSupplement":{"previousHash":"fb032322a3e775f7e754d96a37b10c68ef8511fbaaf26a9242595ab9490a98d7","checkedAt":"2026-10-18T15:55:15.653Z","rule":"dated historical and missing inputs only; accepted observations and research date retained"}},"signals":[{"period":"2021","end":"2021-12-31","values":{"gross_margin":null,"operating_margin":null,"roic":null,"fcf_margin":20.415368639667705,"sbc_revenue":0.3426791277258567},"issues":{"ev_sales":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","ev_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","operating_margin":"Operating income is unavailable in the extracted statements for this period.","ebitda_margin":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roce":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roiic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic_wacc":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","net_debt_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","interest_coverage":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","current_ratio":"The reported inputs required for this metric are unavailable in the extracted statements for this period."}},{"period":"2022","end":"2022-12-31","values":{"gross_margin":null,"operating_margin":null,"roic":null,"fcf_margin":31.066036297087084,"sbc_revenue":0.41177367698642675},"issues":{"pe":"Trailing earnings is zero or negative, so this ratio is undefined.","peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","ev_sales":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","ev_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","operating_margin":"Operating income is unavailable in the extracted statements for this period.","ebitda_margin":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roce":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roiic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic_wacc":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","net_debt_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","interest_coverage":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","current_ratio":"The reported inputs required for this metric are unavailable in the extracted statements for this period."}},{"period":"2023","end":"2023-12-31","values":{"gross_margin":null,"operating_margin":null,"roic":null,"fcf_margin":20.313592329971037,"sbc_revenue":0.18975332068311196},"issues":{"peg":"Prior-year TTM earnings per diluted share is zero or negative; a growth-adjusted multiple is undefined.","ev_sales":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","ev_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","operating_margin":"Operating income is unavailable in the extracted statements for this period.","ebitda_margin":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roce":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roiic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic_wacc":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","net_debt_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","interest_coverage":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","current_ratio":"The reported inputs required for this metric are unavailable in the extracted statements for this period."}},{"period":"2024","end":"2024-12-31","values":{"gross_margin":null,"operating_margin":null,"roic":null,"fcf_margin":23.1719149686866,"sbc_revenue":0.44985445885154807},"issues":{"ev_sales":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","ev_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","operating_margin":"Operating income is unavailable in the extracted statements for this period.","ebitda_margin":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roce":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roiic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic_wacc":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","net_debt_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","interest_coverage":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","current_ratio":"The reported inputs required for this metric are unavailable in the extracted statements for this period."}},{"period":"2025","end":"2025-12-31","values":{"gross_margin":null,"operating_margin":null,"roic":null,"fcf_margin":24.4794553083683,"sbc_revenue":0.2929300926292455},"issues":{"ev_sales":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","ev_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","operating_margin":"Operating income is unavailable in the extracted statements for this period.","ebitda_margin":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roce":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roiic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic_wacc":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","net_debt_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","interest_coverage":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","current_ratio":"The reported inputs required for this metric are unavailable in the extracted statements for this period."}}],"sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/20286/000002028626000008/cinf-20251231.htm","publishedAt":"2026-02-23","sha256":"e0f750ef6076bde728362e4d1753e38e76cf7420ecde1ebad6b0311bd8f15c16","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/20286/000002028626000045/cinf-20260630.htm","publishedAt":"2026-07-27","sha256":"7e3efbde0ee3a41a9d0bb5baacfba39b71c6fd39f553ff488b575ac23dabb2a3","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/20286/000002028626000015/cinf-20260316.htm","publishedAt":"2026-03-18","sha256":"69915f9cabbed88edcd4e9a7a2dcbddaf0c43abb3aaa9e3e1fc71eda5b890c2b","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/20286/000002028625000009/cinf-20241231.htm","publishedAt":"2025-02-24","sha256":"ddda796b161dfef01bd60393a0c58b7011f440fc4e8b6cba71d40535cb928701","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/20286/000002028624000014/cinf-20231231.htm","publishedAt":"2024-02-26","sha256":"7839c0d4ddbdacbeed08a6f4fc05efd74a13aeb0711b50c101cd1dd2ec14f68d","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/20286/000002028626000026/cinf-20260331.htm","publishedAt":"2026-04-27","sha256":"9884aaac761c31022e73913a372052ea9e5903c83aee82d2b0495e81b2846cd4","dateKind":"filed"}],"history":[{"version":5,"updatedAt":"2026-10-19T13:57:15.039Z","verdict":"none","value":null},{"version":4,"updatedAt":"2026-10-18T16:49:32.080Z","verdict":"none","value":null},{"version":3,"updatedAt":"2026-10-18T16:35:43.872Z","verdict":"none","value":null},{"version":2,"updatedAt":"2026-10-18T02:27:49.793Z","verdict":"none","value":null},{"version":1,"updatedAt":"2026-10-18T02:18:02.026Z","verdict":null,"value":null}],"hasRequested":false,"requestStatus":"completed","researchIssue":null,"archivedMoat":null,"scope":"supported_catalog"}