Cincinnati Financial Corporation, a major U.S. insurance company, reported a net profit of US$1.255 billion in the second quarter of 2026, an increase of 83% from US$685 million in the same period last year.
Cincinnati said the results follow the recognition of an $882 million increase in the fair value of equity securities still held in the second quarter of 2026.
The company attributed the increase in net income to a net after-tax increase of $657 million in net investment income and a $28 million after-tax increase in investment income, partially offset by a $115 million decrease in property and casualty underwriting profit.
Non-GAAP operating income totaled $224 million, down 28% from $311 million, due to a $61 million unfavorable impact from higher after-tax catastrophe losses.
Premiums earned during the quarter increased 6% to $2.64 billion from $2.48 billion in the second quarter of 2025.
Total revenue was US$4.27 billion, an increase of 32% from US$3.25 billion.
Cincinnati’s combined property and casualty ratio increased from 94.9% to 100.8% in the second quarter of ’26. The business had an underwriting loss of $18 million, compared with a profit of $128 million a year earlier.
Premium income from the property and casualty insurance business was US$2.55 billion, an increase of 6% from US$2.4 billion, and total revenue also increased by 6% to US$2.55 billion.
Property and casualty net written premiums increased 3% to $2.83 billion, including price increases, premium growth initiatives and higher levels of underwritten risk. New business written premiums fell 13% to US$353 million.
Stephen M. Spray, President and Chief Executive Officer, commented: “Investment income grew well and became our primary source of profit in the second quarter, bringing our total first-half non-GAAP operating income to $554 million.
“When it comes to our insurance business, an increase in catastrophe losses played a significant role in the improvement in our combined ratio, which ended the quarter at a breakeven point of 100.8%. While not a result of any one storm, our field and headquarters claims staff have been busy, bringing compassion and expertise to our agents and policyholders across the country and closer to home. Ohio has been particularly impacted by severe weather this spring, with catastrophe losses nearly four times higher than our second quarter 5-year average for the state.
“On a six-month basis, we achieved a profitable combined ratio of 98.2%. We are optimistic that further maturation of our plans to increase product and geographic diversification will continue to help mitigate the impact of catastrophe losses in any given quarter.”
