US primary insurer Cincinnati Financial Corporation generated net income of $676 million in the fourth quarter of 2025, an increase on the prior year’s $405 million, while the property and casualty (P&C) insurance arm recorded a slightly higher combined ratio of 85.2%.
Group-wide, earned premiums rose by 10% year-on-year to $2.6 billion for Q4’25, as investment income increased by 9% to $305 million, and total revenues spiked 22% to $3.1 billion.
For the full year 2025, Cincinnati delivered net income of $2.4 billion, up 4% on 2024’s $2.3 billion. Earned premiums for the year increased by 12% to almost $10 billion, as investment income increased by 14% to $1.2 billion, and total revenues rose by 11% to $12.6 billion.
Looking specifically at the P&C insurance operations, earned premiums increased by 10% to $2.5 billion in Q4’25, and rose by 13% to $9.7 billion for full year 2025. Total revenues for the quarter increased by 10% year-on-year to $2.5 billion, and increased by 13% to $9.7 billion for FY’25.
The company highlights 5% and 9% growth in fourth quarter and full-year 2025 P&C net written premiums, reflecting price increases, premium growth initiatives and a higher level of insured exposures.
The contribution to growth from Cincinnati Re and Cincinnati Global Underwriting Ltd. in total was less than 1 percentage point for both the fourth quarter and full year.
However, loss and losses expenses increased for both periods, rising by 11% to $1.4 billion in the quarter and increasing by 17% to $6.3 billion for 2025. Underwriting expenses also increased for both periods. Underwriting profit increased by 7% to $378 million in Q4’25, but decreased by 14% to $501 million in 2025.
The P&C insurance combined ratio increased by 0.5 percentage points to 85.2% in Q4’25 and increased by 1.5 percentage points to 94.9% for 2025.
Stephen M. Spray, President and Chief Executive Officer, said: “After beginning the year with the worst catastrophe loss in our company’s history, it took persistence and focus to record a 4% increase in full-year net income of $2.393 billion and $1.254 billion in full-year 2025 non-GAAP operating income – a 5% increase compared with 2024.
“For the fourth quarter, our insurance operations produced a combined ratio of 85.2% – one of our best fourth quarters in the last decade. On a full-year basis, our combined ratio of 94.9% is comfortably within our long-term annual average goal of 92% to 98% and marks 14 consecutive years of achieving an underwriting profit.
“Importantly, we continued seeing steady progress in our current accident year combined ratio before catastrophe losses. That measure improved 0.4 percentage points to 86.1% for 2025, even with the unfavorable effects of $52 million in reinsurance reinstatement premiums related to the California wildfires.
“Our life insurance subsidiary also contributed nicely, recording a 16% increase in net income to $106 million.”
