Cincinnati reports net written premium growth of 11% in Q2’25

Cincinnati Financial Corporation has reported growth of 11%, or $274 million in property and casualty (P&C) net written premiums to $2.7 billion for the second quarter of 2025, driven by price increases, premium growth initiatives and a higher level of insured exposures.

The results reveal that the contribution to net written premiums from Cincinnati Re and Cincinnati Global Underwriting in total reduced the Q2 growth rate by less than 1 percentage point, reflecting pricing discipline where market conditions softened.

The carrier recorded $404 million in new business written premiums in Q2’25 in the P&C segment, down by 1% year-on-year.

Agencies appointed since the beginning of 2024 contributed $38 million or 9% of total new business written premiums.

The firm’s insurance operations reported a P&C combined ratio of 94.9% in Q2’25, an improvement from 98.5% in Q2’24. The improved combined ratio comes despite an increase of 1.0 points for losses from catastrophes, due to the benefit from favourable prior accident year reserve development of $63 million.

Loss and loss adjustment expenses increased to $1.587 billion in Q2’25 from $1.412 billion in Q2’24, while underwriting expenses rose to $685 million from $631 million.

Underwriting profit increased by a significant 266% to $128 million in Q2’25 compared with $35 million in the comparable prior year quarter.

Meanwhile, in Q2’25, the life insurance subsidiary net income is $26 million, up $2 million compared to Q2’24, with a 3% growth in term life insurance earned premiums.

All in all, net income for Q2’25 improved to $685 million, or $4.34 per share, compared with $312 million, or $1.98 per share, in Q2’24, after recognising a $380 million second-quarter 2025 after-tax increase in the fair value of equity securities still held.

For the quarter, the non-GAAP operating income is $311 million compared to $204 million in the second quarter of last year. The increase of $107 million included an unfavourable effect of $45 million from an increase in after-tax catastrophe losses.

The $373 million increase in Q2’25 net income included the effects of after-tax net increases of $266 million from net investment gains, $73 million from property casualty underwriting profit, and $34 million from investment income, reveals the firm.

Meanwhile, there was an 18% or $43 million increase in Q2’25 pretax investment income, including a 24% increase in bond interest income and a 1% increase in stock portfolio dividends.

Stephen M. Spray, President and Chief Executive Officer, commented, “I’m pleased with our overall second-quarter 2025 results. It was a solid quarter, showing the strength of our agent-centered strategy and the value of our long-term plans to steadily expand product and geographic diversification as well as deepen pricing segmentation and sophistication.

“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.

“While our 103.8% combined ratio for the first six months of the year is higher than we’d like it to be, that ratio for our second quarter improved 3.6 points to 94.9%. Again demonstrating the strength of our long-term initiatives, our current accident year combined ratio before catastrophe losses improved 3.1 points for the quarter and 1.9 points for the first six months, reaching 85.1% and 87.7%, respectively. Pretax investment income for the second quarter also grew, rising 18% to $285 million, driven by a 24% increase in bond interest income.

“We believe combining our hallmark of personal service with data-driven analytics will allow us to grow profitably through all market cycles. Property casualty consolidated net written premiums grew 11% for both the second quarter and the first half of 2025, surpassing $5 billion in the first six months for the first time ever.

“Keeping underwriting discipline in mind, we’ve managed average commercial lines price increases near the high end of the mid-single-digit percent range and excess and surplus lines in the high-single-digit percentage range. Personal lines homeowner prices increased on average in the low-double digit percent range and auto in the high-single-digit percent range.

“In May, we launched our fifth product brokered through CSU Producer Resources Inc. with the support of Cincinnati Global Underwriting Ltd. We believe having this additional capability is also boosting our ability to write more excess and surplus lines business overall, contributing to the strong 24% increase in second-quarter new business written premiums for our E&S segment.

“At June 30, our book value again reached a record high, increasing 2.6% since December 31, 2024, to $91.46. Consolidated cash and total investments also reached a new high, exceeding $30 billion. Our ample capital allows us to execute on our long-term strategies and, at the same time, pay dividends to shareholders. Our value creation ratio, which considers the dividends we pay as well as growth in book value, was 4.6% for the first half of 2025.”

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