Cincinnati Financial Corporation, a major U.S. insurance company, announced financial results for the first quarter of 2026, with a net profit of $274 million, compared with a net loss of $90 million in the first quarter of 2025.
The insurer explained that this follows the recognition of an $82 million decrease in the fair value of equity securities still held in the first quarter of 2026.
The main drivers of the net income increase were a $326 million increase in property casualty underwriting profits and a $31 million increase in investment income.
Non-GAAP operating income was $330 million, compared with an operating loss of $37 million in last year’s first quarter. The $367 million increase included a $233 million benefit from lower after-tax catastrophe losses.
The company’s property casualty combined ratio was 95.6% in the first quarter of 2026, an improvement from 113.3% in the first quarter of 2025.
Stephen M. Spray, president and chief executive officer, noted: “While the improvement in results was largely driven by a reduction in catastrophe losses, we also saw a decrease in the combined current accident-year ratio before catastrophe losses, which gives us confidence in the health of our overall business.
“As we continue to refine our pricing segmentation and risk selection, we lowered this ratio by 3 percentage points from last year’s first quarter to 87.5%.”
Cincinnati also reported a 7% increase in net written premiums to $2.7 million. The increase was attributed to premium growth initiatives, higher levels of insurance exposure and a 2% increase in net premium recovery in the first quarter of 2025.
This increase includes the impact of $52 million in net recovery premiums in the first quarter of 2025 related to the January 2025 Southern California wildfires. Cincinnati Re and Cincinnati Global Assurance Co. contributed a combined 0.9 percentage point to first-quarter growth.
Property casualty new business written premiums fell 11% to $339 million in the first quarter of 2026. Agencies appointed since the start of 2025 have contributed $23 million, accounting for 7% of total new business premium written.
The company’s life insurance subsidiary’s net profit for the quarter was $26 million, an increase of $5 million from the first quarter of 2025, and term life insurance premiums increased by 7% in the first quarter of 2026.
Spray commented: “Comprehensive net premiums increased 7% compared to the first quarter of 2025. While average renewal pricing growth slowed slightly, we continued to price on a policy basis.
“The pricing sophistication we build into our underwriting process allows our underwriters to charge what we deem appropriate for the risk we assume based on the unique characteristics of each account. That rate may be above or below average.”
Adding: “For the remainder of the year, we will lean into our strategy of appointing additional agencies and delivering new products as a means of continuing to deliver profitable growth. In the first three months of 2026 alone, we have appointed 108 agencies across the United States. We also continue to add new products, particularly in excess and surplus product lines.
“E&S is no longer a market of last resort. While it remains flexible on terms and rates, our approach to this business is more strategic. We often find that if we can book a portion of an account through our E&S business, we have a better opportunity to bring the other risks of that account into our standard business.”