CINCINNATI FINANCIAL CORPCINF

CINCINNATI FINANCIAL CORP Segments Disclosure

10-KFiled Feb 23, 20264 min read
Segment Information
We operate primarily in two industries, property casualty insurance and life insurance. Our CODM is the chief executive officer who regularly reviews our reporting segments to make decisions about allocating resources and assessing performance. Our five reporting segments are:
•Commercial lines insurance
•Personal lines insurance
•Excess and surplus lines insurance
•Life insurance
•Investments

We report as Other the noninvestment operations of the parent company and its noninsurer subsidiary, CFC Investment Company. We also report as Other the underwriting results of Cincinnati Re and Cincinnati Global.

Revenues come primarily from unaffiliated customers:
•All four insurance segments record revenues from insurance premiums earned.
•Fee revenues for the commercial, personal and excess and surplus insurance segments primarily represent installment fees. Fee revenues for the life insurance segment represent separate account investment management fees.
•Our investments’ revenues consist of pretax net investment income and investment gains and losses.
•Other revenues are primarily finance income and earned premiums of Cincinnati Re and Cincinnati Global.

Income or loss before income taxes for each segment are reported based on the nature of that business area’s operations:
•Income or loss before income taxes for the insurance segments is defined as underwriting profit or loss.
◦For commercial lines, personal lines and excess and surplus lines insurance segments, we calculate underwriting profit or loss as premiums earned and fee revenue minus loss and loss expenses and underwriting expenses incurred.
◦For the life insurance segment, we calculate underwriting profit or loss as premiums earned and fee revenue, minus contract holders’ benefits and expenses incurred, plus investment interest credited to contract holders.
•Income or loss before income taxes for the investments segment is net investment income plus investment gains and losses for investments of the entire company, minus investment interest credited to contract holders of the life insurance segment.
•Income or loss before income taxes for the Other category is primarily due to Cincinnati Re and Cincinnati Global premiums earned minus loss and loss expenses and underwriting expenses incurred. It also includes interest expense from debt of the parent company as well as operating expenses of our headquarters.

For all segments, the CODM uses income or loss before income taxes, and its components, to allocate resources (including associate, financial and capital resources) primarily during the annual budgeting and forecasting process and throughout the year as necessary. For the commercial lines, personal lines, excess and surplus and life segments, the CODM uses this metric to assess performance by analyzing the relationship between premium revenue and loss and loss expenses and underwriting expenses. As part of this analysis, the drivers and components of those revenue and expense items, such as pricing, exposure growth and inflation, are also considered as necessary. For the investments segment, the CODM considers overall investment performance as well as current conditions to invest available cash flow in both fixed-maturity and equity securities in a manner that balances current income needs with longer-term investment growth goals.

We do not separately report the identifiable assets of property casualty insurance for the commercial, personal and excess and surplus lines segments or for Cincinnati Re because we do not use that measure to analyze performance. We include all investment portfolio assets, regardless of ownership, in the investments segment.
Segment information is summarized in the following table:
(Dollars in millions)Years ended December 31,
202520242023
Commercial lines insurance   
Commercial lines insurance premiums$4,863 $4,486 $4,264 
Fee revenues5 4 4 
Total commercial lines insurance revenues4,868 4,490 4,268 
Loss and loss expenses2,970 2,795 2,787 
Underwriting expenses1,459 1,384 1,313 
Total commercial lines income before income taxes439 311 168 
Personal lines insurance   
Personal lines insurance premiums3,199 2,623 2,044 
Fee revenues5 5 4 
Total personal lines insurance revenues3,204 2,628 2,048 
Loss and loss expenses2,419 1,795 1,442 
Underwriting expenses896 762 610 
Total personal lines income (loss) before income taxes(111)71 (4)
Excess and surplus lines insurance
Excess and surplus lines insurance premiums698 615 542 
Fee revenues4 3 3 
Total excess and surplus lines insurance revenues702 618 545 
Loss and loss expenses425 411 350 
Underwriting expenses192 167 141 
Total excess and surplus lines income before income taxes85 40 54 
Life insurance
Life insurance premiums330 321 313 
Fee revenues6 5 10 
Total life insurance revenues336 326 323 
Contract holders' benefits incurred305 301 316 
Investment interest credited to contract holders(127)(125)(121)
Underwriting expenses incurred93 93 87 
Total life insurance income before income taxes65 57 41 
Investments   
Investment income, net of expenses1,165 1,025 894 
Investment gains and losses, net1,442 1,391 1,127 
Total investment revenue2,607 2,416 2,021 
Investment interest credited to contract holders127 125 121 
Total investments income before income taxes2,480 2,291 1,900 
Reconciliation to consolidated income before income taxes
Total segment revenues11,717 10,478 9,205 
Other earned premiums893 844 795 
Other revenues21 15 13 
Total revenues12,631 11,337 10,013 
Total segment benefits and expenses8,759 7,708 7,046 
Other loss and loss expenses521 435 379 
Other underwriting expenses284 251 233 
Other benefits and expenses87 85 79 
Total benefits and expenses9,651 8,479 7,737 
Total income before income taxes$2,980 $2,858 $2,276 
 

Identifiable assets by segment are summarized in the following table:
(Dollars in millions)December 31,December 31,
20252024
Identifiable assets:
Property casualty insurance$6,916 $5,927 
Life insurance1,695 1,658 
Investments31,199 27,887 
Other1,192 1,029 
Total$41,002 $36,501 
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Historical Timeline

Fiscal YearFiled
2025Feb 23, 2026Showing above
2024Feb 24, 2025
2023Feb 26, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 25, 2020
2018Feb 22, 2019
2017Feb 23, 2018
2016Feb 24, 2017
2015Feb 26, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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