Cincinnati Financial Corporation reported second-quarter 2025 net income of $685 million, or $4.34 per share, up from $312 million, or $1.98 per share, in the same period last year.
The increase included a $380 million after-tax gain from the change in fair value of equity securities still held.
Non-GAAP operating income for the quarter was $311 million, or $1.97 per share, compared with $204 million, or $1.29 per share, in the second quarter of 2024. The $107 million year-over-year increase included a $45 million after-tax impact from higher catastrophe losses.
Total net income rose by $373 million compared with the second quarter of 2024. The gain reflects after-tax contributions of $266 million from net investment gains, $73 million from property and casualty underwriting profit, and $34 million from investment income.
Book value per share stood at $91.46 as of June 30, 2025, an increase of $2.35 since the end of 2024. The value creation ratio was 4.6% for the first half of the year, down from 8.2% during the same period last year.
The property and casualty combined ratio for the second quarter improved to 94.9%, compared to 98.5% a year earlier. Net written premiums in the P&C segment grew 11%, supported by rate increases, ongoing premium growth initiatives, and a larger base of insured exposures.
New business written premiums in the segment totaled $404 million, representing a 1% decline from the previous year. Agencies appointed since the start of 2024 contributed $38 million, or 9% of the total new business for the quarter.
Cincinnati Financial’s life insurance subsidiary reported net income of $26 million in the second quarter, up $2 million from the prior-year period. Earned premiums for term life insurance rose 3% year over year.
In contrast to second-quarter results, the company reported a sharp underwriting loss in the first quarter of 2025, with a combined ratio of 113.3%. That figure reflected a 25-point contribution from catastrophe losses, three times higher than Cincinnati’s 10-year Q1 average. Events such as the California wildfires and spring storms significantly impacted results for that period.
Large loss activity also increased in the first quarter. Claims exceeding $2 million totaled $102 million, more than double the amount recorded in the first quarter of 2024. These large losses added pressure to the company’s early-year results before the rebound reported in the second quarter.
Despite the Q1 volatility, Fitch Ratings affirmed Cincinnati Financial’s credit ratings, citing strong capitalization, prudent underwriting standards, and low financial leverage. The agency also highlighted the company’s capital strength as a factor supporting its current rating outlook.
The company reported $43 million in pretax investment income for the quarter, an 18% increase from the second quarter of 2024. Bond interest income increased 24%, while dividends from the stock portfolio rose 1%.
The fair value of total investments rose 4% over the quarter, with a 3% increase in the bond portfolio and a 5% increase in the stock portfolio. The parent company held $5.061 billion in cash and marketable securities at quarter-end, down 3% from year-end 2024.
Stephen M. Spray (pictured above), president and CEO, said the company had a solid quarter and cited the impact of its agent-centered strategy.
"We saw the increases in weather-related catastrophe events that started the year continue in the second quarter. In April, May and June, 20 total catastrophes were declared, including the heart-breaking floods in Texas. Our claims associates continued to deliver fast, fair and empathetic service, paying more than half a billion dollars in catastrophe-related claims so far in 2025,” Spray said.
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