Cincinnati Financial Q4 Earnings Beat Estimates on Underwriting Income

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%.