Cincinnati Financial Corporation

Corporate structure

• Ohio corporation, formed 1968. Lead subsidiary: The Cincinnati Insurance Company (founded 1950).
• Core business: property and casualty insurance sold through independent insurance agencies in 46 states; headquarters in Fairfield, Ohio.
• Wholly owned entities: The Cincinnati Insurance Company; Cincinnati Global Underwriting Ltd.; CSU Producer Resources Inc.; CFC Investment Company.
• The Cincinnati Insurance Company owns four additional insurance subsidiaries: The Cincinnati Casualty Company; The Cincinnati Indemnity Company; The Cincinnati Life Insurance Company; The Cincinnati Specialty Underwriters Insurance Company.
• Cincinnati Global owns Cincinnati Global Underwriting Agency Ltd. (Lloyd’s Syndicate 318) and Cincinnati Global Dedicated No. 2 Ltd. (Lloyd’s corporate member).
• Noninsurance subsidiaries: CSU Producer Resources (E&S brokerage) and CFC Investment Company (commercial leasing and financing).
• The company maintains an investment portfolio, owns headquarters property, and manages corporate borrowings and shareholder dividends.

Market and strategy

• Distribution model: independent agency channel.
• Strategic focus: maintain underwriting discipline and efficiency, support agency relationships, manage insurance profitability, drive premium growth, pursue innovation and technology, cross-sell life products, and expand reinsurance and global specialty underwriting capabilities.
• Geographic and product emphasis: U.S. standard-market property and casualty via independent agencies; E&S products via CSU Producer Resources; Lloyd’s and international specialty capabilities via Cincinnati Global; life products via Cincinnati Life.

Products and segments

• Five reporting segments:
  • Commercial lines insurance
  • Personal lines insurance
  • Excess and surplus lines insurance
  • Life insurance
  • Investments (investment income, gains/losses, portfolio management for the holding company and subsidiaries)
• Primary products:
  • Property and casualty: commercial and personal lines (auto, homeowners, business property and liability, workers’ compensation, management liability, surety, machinery and equipment, etc.).
  • Excess and surplus: higher-risk or niche accounts via CSU Producer Resources, generally one-year policies.
  • Life insurance: term, whole life, universal life, worksite products, and deferred/immediate annuities.

Distribution and customers

• Distribution primarily through independent agencies: 2,292 agency relationships (end of 2025) and 3,702 reporting locations.
• Cross-selling: life products are marketed through property casualty agencies and approximately 489 independent life agencies; Cincinnati Life also supports direct life agency relationships.
• Active in 46 states.

2025 customer and policy highlights

• Independent agency relationships: 2,292 (end of 2025) vs. 2,175 (end of 2024).
• Reporting agency locations: 3,702 (2025) vs. 3,355 (2024).
• New appointments:
  • New appointments marketing all or most Cincinnati products: 349 (2025) vs. 202 (2024).
  • New appointments marketing only personal lines: 71 (2025) vs. 102 (2024).
  • New relationship appointments: 266 (2025) vs. 212 (2024).
• Personal lines presence: approximately 2,674 agency locations (about 72% of reporting locations) market Cincinnati personal lines; about 1.3 million personal lines policies in force covering roughly 550,000 policyholders.
• Top 10 states account for about half of consolidated property casualty premiums and a similar share of personal lines.

Financial performance (2025)

• Total net written premiums by segment (2025):
  • Commercial lines: $4,998 million
  • Personal lines: $3,430 million
  • Excess and surplus lines: $729 million
  • Life insurance: $360 million
  • Other: $925 million
  • Total: $10,442 million (vs. $9,605 million in 2024 and $8,410 million in 2023)
• Segment pretax results:
  • Commercial lines: $439 million
  • Personal lines: -$111 million (loss)
  • Excess and surplus lines: $85 million
  • Life: $65 million
• Investments (as of December 31, 2025):
  • Investment portfolio fair value: $30.965 billion (vs. $27.665 billion at end of 2024)
  • Composition (fair value):
    • Taxable fixed maturities: $14,010 million
    • Tax-exempt fixed maturities: $4,113 million
    • Common equities: $12,373 million
    • Nonredeemable preferred equities: $321 million
    • Short-term investments: $148 million
  • Investment concentrations: no single issuer exceeded 0.8% of taxable fixed maturities; Apple was the largest common stock holding (7.7% of the common stock portfolio and 3.1% of the overall portfolio); the top five common stock holdings (Apple, Microsoft, Broadcom, JPMorgan Chase, Lam Research) comprised about 30% of the common stock portfolio; the parent company held about 41.4% of the common stock holdings.
  • Net unrealized gains in equity securities at year-end 2025: $8.539 billion.
• Parent-level liquidity and debt:
  • Cash and invested assets at parent: $5.602 billion (of which $5.123 billion in common stocks; $205 million in cash and cash equivalents).
  • Long-term debt: $790 million; short-term debt: $25 million.
  • Debt structure includes three nonconvertible, noncallable debentures (two due 2028, one due 2034).
• Insurance reserves and capital adequacy:
  • Property casualty statutory capital and surplus: $9,749 million; RBC: $9,796 million; authorized control level RBC: $1,761 million; ratio of RBC to ACL RBC: 5.6x.
  • Life statutory adjusted surplus to liabilities ratio: 17.6%; life RBC: 9.7x the authorized control level.
  • Common stock to statutory capital and surplus (statutory basis): ~74.0% (end of 2025).
• Reinsurance and Lloyd’s:
  • Cincinnati Re net written premiums: $591 million (2025) vs. $597 million (2024).
  • Cincinnati Global net written premiums: $334 million (2025) vs. $303 million (2024).

Operations and risk management

• Enterprise risk management overseen by a risk committee with formal processes for risk identification, assessment, and mitigation, including cybersecurity.
• Operations are subject to state insurance regulation and holding company regulatory requirements.
• Primary industry risks include loss reserve uncertainty, catastrophe exposure, inflationary pressure on claim costs, reinsurance availability and credit, rate adequacy, competition, and evolving regulation (including cyber, privacy, and climate-related rules).

Real estate and facilities

• Fairfield, Ohio headquarters: 107 acres, 1,508,200 sq ft; book value approximately $127 million (as of 12/31/2025).
• Gilmore Pointe: four-story building, ~103,000 usable sq ft; valuation around $3 million; 90% leased to unaffiliated tenants (year-end 2025).
• CFC Winton Center: ~48,000 total sq ft; value around $7 million.
• London office space for Cincinnati Global and additional U.S. office space to support operations.

Client and market characteristics

• Approximately 60% of U.S. property casualty premiums are produced via independent agents; about 80% of commercial P&C premiums are produced via independent agents.
• Commercial book emphasizes small-to-medium sized businesses, with many policies under $10,000 annual premium and a mix of larger accounts, including some above $100,000.
• Cross-sell and service model includes life products, worksite life, and personal lines cross-serving within agency relationships.

Summary

Cincinnati Financial Corporation is a diversified insurance and investment holding company anchored by The Cincinnati Insurance Company. It operates a substantial U.S. property and casualty business through a broad independent-agency channel, with complementary life insurance, excess and surplus operations, a reinsurance business, and a London-based Lloyd’s platform. In 2025 the company reported total net written premiums of $10.442 billion across five segments, pretax results including $439 million from Commercial lines, a $111 million loss in Personal lines, $85 million from E&S, and $65 million from Life, approximately 5,705 associates, and an investment portfolio valued at about $30.97 billion.