US primary insurer Cincinnati Financial Corporation reported a net income of $1.255 billion for the second quarter of 2026, up 83% from $685 million in the same period a year earlier.
Cincinnati said the result is after recognising an after-tax increase of $882 million in the fair value of equity securities still held during the second quarter of 2026.
The firm attributed the increase in net income to after-tax net increases of $657 million from net investment gains and $28 million from investment income, partially offset by a $115 million decrease from property and casualty underwriting profit.
Non-GAAP operating income totalled $224 million, a 28% decrease from $311 million, driven by an unfavourable effect of $61 million from an increase in after-tax catastrophe losses.
For the quarter, earned premiums increased 6% to $2.64 billion from $2.480 billion in Q2’25.
Total revenues stood at $4.27 billion, representing a 32% increase compared with $3.25 billion.
In Q2’26, Cincinnati’s property and casualty combined ratio increased to 100.8% from 94.9%. The operations posted an underwriting loss of $18 million versus a profit of $128 million a year earlier.
The P&C insurance operations reported earned premiums of $2.55 billion, up 6% from $2.4 billion, while total revenues also increased 6% to $2.55 billion.
The P&C insurance net written premiums grew 3% to $2.83 billion, including price increases, premium growth initiatives and a higher level of insured exposures. New business written premiums were down 13% to $353 million.
Stephen M. Spray, President and CEO, commented, “Investment income increased nicely, producing our main source of profits in the second quarter and bringing our total non-GAAP operating income to $554 million for the first half of the year.
“Turning to our insurance business, elevated catastrophe losses played a large part in an uptick in our combined ratio, coming in just shy of breakeven at 100.8% for the quarter. While not the result of any single storm, our field and headquarters claims associates have been busy, bringing compassion and expertise to our agents and policyholders across the country and close to home. Ohio was particularly impacted by bad weather this Spring with catastrophe losses reaching nearly four times higher than our 5-year second-quarter average for the state.
“On a six-month basis, we recorded a profitable 98.2% combined ratio. We are optimistic that further maturing of our plans to increase both product and geographic diversification will continue to help mute the impacts of catastrophe losses in any one quarter.”
