CINCINNATI FINANCIAL CORP Q1 FY2026 earnings call

• Performance in first quarter was good with insurance and investment operations performing well. • Strong non-GAAP operating income. • Property casualty combined ratio improved. • Consolidated property casualty net written premiums grew 7%. • Market disruption over past few years benefited by strong financial position and pricing models. • Growth slowing as underwriters emphasize pricing and risk segmentation. • Premium growth objectives supported by exceptional claims service and agent relationships. • Commentary on insurance segments: Commercial lines, personal lines, excess and surplus lines, Cincinnati RE, Cincinnati Global, life insurance. • Investment income growth, expense management, loss reserves approach, capital management highlights.

Insurance and investment operations performed well. Net income was $274 million. Non-GAAP operating income was $330 million. Property casualty combined ratio improved. Consolidated property casualty net written premiums grew 7%. Commercial lines grew 3% with 98.6% combined ratio. Personal lines grew 15% with 96.8% combined ratio. Excess and surplus lines grew 8% with 89.3% combined ratio. Cincinnati RE's net written premiums decreased less than 1% with 79.7% combined ratio. Cincinnati Global had 31% premium growth and 78.7% combined ratio. Life insurance subsidiary had 24% net income growth and term life insurance earned premiums grew 7%. VCR was 0.2%. Investment income grew 14%. Bond interest income grew 12%. Dividend income up 13%. Net sales of equity securities $54 million. Valuation changes unfavorable for equity and bond portfolios. Cash flow from operating activities $656 million. Property casualty underlying expense ratio decreased. Net addition to loss and loss expense reserves $466 million. Net favorable reserve development $81 million. Paid $133 million in dividends. Repurchased 1.1 million shares.

• No specific forward-looking guidance with detailed upward/downward revision mentioned. • Discussed normalcy returning to personal lines after historic hard market years. • Mentioned monitoring social inflation and tort reform, but no specific guidance on impact. • Acknowledged prudent underwriting in face of market pressure on rate.

• Forward-looking statements involve risks and uncertainties. • Social inflation and legal system abuse pose risks, especially in commercial casualty and auto lines. • Competition in certain regions like California could impact retention and new business. • Market conditions and competitive environment could affect pricing powers and hit rate on larger premium accounts.

Q: Dive into renewal price change in commercial.

A: High end of low single digit, mid-single-digit in casualty, focus on risk selection, terms, conditions and pricing tools.

Q: Talk about personal umbrella book strategy.

A: Umbrella comes with package, focus on private client, balance sheet and expertise, monitor legal system abuse.

Q: Growth rates in personal lines subgroups.

A: High net worth property-driven, middle market auto-driven, geographic diversification.

Q: Bifurcate homeowners growth between rate and unit growth.

A: Impact of reinstatement premiums, new business slowdown in California, returning to normal state.

Q: Capital management and share purchases.

A: Share purchases not unusual, maintenance plus, will see how rest of year goes.

Q: Social inflation and casualty lines.

A: Confident in pricing and risk selection, still uncertainty, monitor tort reform.

Q: Commercial lines pricing powers.

A: Stable, but larger accounts face more pressure, underwriters executing on risk-adjusted basis.

Q: Reserve issues and casualty reserves.

A: Favorable development spread across accident years, nothing popping out.

Q: Long-term combined ratio goals.

A: Long-term target 92-98, prudent underwriting in face of market pressure.

Q: Agency appointments.

A: Limited distribution model, focus on agency quality, prioritize states for good risk-adjusted returns.

Q: Exposure to Middle East political violence, marine or energy risks.

A: Very little exposure, minimal amounts on Cincinnati Re and Cincinnati Global