Cincinnati Financial Q4 Earnings Beat Estimates on Underwriting Income

Cincinnati Financial Corporation CINF reported fourth-quarter 2025 operating income of $3.37 per share, which surpassed the Zacks Consensus Estimate by 17.8%. The bottom line increased 7% year over year.

Total operating revenues for the quarter were $2.9 billion, reflecting a 9.8% year-over-year increase, though the figure missed the Zacks Consensus Estimate by 0.02%.

Quarterly results benefited from premium growth initiatives, price increases, and higher interest income from fixed-maturity securities, partially offset by higher expenses.

Cincinnati Financial Corporation Price, Consensus and EPS Surprise

Cincinnati Financial Corporation price-consensus-eps-surprise-chart | Cincinnati Financial Corporation Quote

Operational Update

Earned premiums climbed 10% year over year to $2.6 billion, driven by premium growth initiatives, price increases and higher insured exposures. The figure marginally missed the Zacks Consensus Estimate by 0.3%.

Net investment income, net of expenses, increased 9% year over year to $305 million, primarily due to a 10% rise in interest income from fixed-maturity securities. The figure marginally beat the Zacks Consensus Estimate by 0.5%

Total benefits and expenses rose 9.3% year over year to $2.3 billion, mainly due to higher insurance losses, contract holders’ benefits, and increased underwriting, acquisition, and insurance expenses.

In its property and casualty insurance business, CINF reported underwriting income of $378 million, marking a 7% increase year over year. The figure was well above the Zacks Consensus Estimates of $284.5 million.

The combined ratio, a key measure of underwriting profitability, increased 50 basis points year over year to 85.2, significantly outperforming the consensus estimate of 89.6.

Quarterly Segment Update

Commercial Lines Insurance: Total revenues of $1.2 billion increased 7% year over year, beating the Zacks Consensus Estimate by 0.8%. The upside was primarily driven by a 7% increase in earned premiums.

Underwriting income was $144 million, down 20% year over year. The combined ratio deteriorated 390 basis points year over year to 88.4%. The Zacks Consensus Estimate was 90.8%.

Personal Lines Insurance: Total revenues of $860 million increased 18% year over year, driven by an 18% rise in earned premiums. The Zacks Consensus Estimate was $846.9 million.

Underwriting profit increased 11% year over year to $161 million, significantly surpassing the Zacks Consensus Estimate of $110 million. The combined ratio deteriorated 130 basis points year over year to 81.5%. The Zacks Consensus Estimate was 85.9%.

Excess and Surplus Lines Insurance: Total revenues of $189 million grew 12% year over year, aided by a 12% increase in earned premiums. The Zacks Consensus Estimate was $187.6 million.

Underwriting profit surged 150% year over year to $30 million, which was well above the Zacks Consensus Estimates of $16.2 million. The combined ratio improved 840 basis points year over year to 84.7%. The Zacks Consensus Estimate was 92.0%.

Life Insurance: Total revenues were $137 million, up 4% year over year, driven by 4% higher earned premiums and 6% higher investment income, net of expenses. The Zacks Consensus Estimate was $136 million.

Total benefits and expenses were flat year over year at $98 million.

Full-Year Update

For 2025, operating income totaled $7.95 per share, reflecting a 5% year-over-year increase and beating the Zacks Consensus Estimate by 8%.

Operating revenues for the year were $11.19 billion, in line with the Zacks Consensus Estimate. This reflected a 13% year-over-year increase.

Financial Update

As of Dec. 31, 2025, Cincinnati Financial reported total assets of $41 billion, up from $36.5 billion at the end of 2024.

Long-term debt was $790 million as of Dec. 31, 2025, unchanged from year-end 2024.

The company’s debt-to-capital ratio improved 60 basis points year over year to 4.9%, reflecting a stronger capital position.

As of Dec. 31, 2025, CINF’s book value per share increased 15% year over year to $102.35, supported by a 14% rise in net pretax investment income, which reached nearly $1.2 billion for the year.

Zacks Rank

Cincinnati Financial currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

AXIS Capital Holdings Limited AXS reported fourth-quarter 2025 operating income of $3.25 per share, which outpaced the Zacks Consensus Estimate by 9.4% and rose 9.4% year over year.

Total operating revenues of $1.7 billion beat the Zacks Consensus Estimate by 5.2%. The top line rose nearly 9% year over year on higher premiums earned. Net premiums written rose 13% to $1.4 billion, with an increase of 14% in the Insurance segment, and growth of 5% in the Reinsurance segment.

Selective Insurance Group SIGI reported fourth-quarter 2025 operating income of $2.57 per share, which marginally beat the Zacks Consensus Estimate by 0.3%. The bottom line increased 59% year over year.

Total revenues of $1.4 billion increased 8.3% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line marginally exceeded the Zacks Consensus Estimate by 0.1%.

Arch Capital Group Ltd. ACGL reported fourth-quarter 2025 operating income of $2.98 per share, which beat the Zacks Consensus Estimate by 19.7%. The bottom line increased 31.9% year over year.

Operating revenues of $4.7 billion increased 4.4% year over year, driven by higher net premiums earned and net investment income. Revenues surpassed the Zacks Consensus Estimate by 2%.

Just Released: Zacks Top 10 Stocks for 2026

Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.

From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.

Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research