Cincinnati Financial Corporation, a major U.S. insurance company, reported net income of $676 million in the fourth quarter of 2025, up from $405 million in the same period a year earlier, while the property and casualty (P&C) insurance unit’s combined ratio was slightly higher at 85.2%.
In the fourth quarter of 2025, premiums earned across the group increased 10% year-on-year to US$2.6 billion, investment income increased 9% to US$305 million, and total revenue soared 22% to US$3.1 billion.
For the full year of 2025, Cincinnati achieved net profit of $2.4 billion, an increase of 4% from $2.3 billion in 2024. Full-year premiums earned increased 12% to nearly $10 billion, investment income increased 14% to $1.2 billion, and total revenue increased 11% to $12.6 billion.
Looking specifically at the property and casualty insurance business, premiums earned increased by 10% in the fourth quarter of 2025 to US$2.5 billion, and by 13% for the full year of 2025 to US$9.7 billion. Total revenue increased 10% year over year to $2.5 billion in the quarter and 13% in FY25 to $9.7 billion.
The company highlighted that property and casualty net written premiums increased 5% and 9%, respectively, in the fourth quarter and full year 2025, reflecting higher prices, premium growth initiatives and higher levels of insurance risk.
Cincinnati Re and Cincinnati Global Underwriting Co. contributed less than 1 percentage point combined to fourth-quarter and full-year growth.
However, losses and impairment charges increased in both periods, rising 11% to $1.4 billion in the quarter and 17% to $6.3 billion in 2025. Underwriting costs also increased in both periods. Underwriting profit increased 7% to $378 million in 4Q25 but will fall 14% to $501 million in 2025.
The property and casualty insurance combined ratio increased by 0.5 percentage points to 85.2% in the fourth quarter of 2025, and will increase by 1.5 percentage points in 2025 to 94.9%.
“After suffering the worst catastrophe loss in the company’s history at the beginning of the year, we persevered and stayed focused, resulting in full-year 2025 net income increasing 4% to $2.393 billion, and full-year 2025 non-GAAP operating income increasing $1.254 billion, a 5% increase compared to 2024,” said Stephen M. Spray, president and chief executive officer.
“In the fourth quarter, our insurance business’ combined ratio was 85.2%, one of our best fourth quarters in the past decade. For the full year, our combined ratio of 94.9% was fully in line with our long-term annual average target of 92% to 98%, marking our 14th consecutive year of underwriting profits.
“Importantly, we continue to see a steady increase in the combined ratio of non-catastrophe losses in the current incident year. This metric will improve 0.4 percentage points to 86.1% in 2025, despite a $52 million adverse impact from reinsurance recovery premiums related to the California wildfires.
“Our life insurance subsidiary also made a good contribution, with net profit increasing 16% to US$106 million.”