CINCINNATI FINANCIAL CORP (CINF) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that CINCINNATI FINANCIAL CORP surfaced in its latest filing.

• Cincinnati Global is a Lloyd’s managing agent and syndicate, exposed to Lloyd’s rating agency ratings and reputation.
• Our insurance operations include Cincinnati Re and Cincinnati Global, which provide reinsurance or insurance coverage for property catastrophe events on a worldwide basis, including war, terrorism, and political violence.
• Fixed-maturity investments represented 58.5% of the fair value of our investment portfolio at the end of 2025.2025
• At year-end 2025, common stock holdings made up 40.0% of our investment portfolio.2025
• Probable maximum loss estimates from a single hurricane event, net of reinsurance and taxes and including estimated reinstatement premiums, are $632 million for a 1-in-100 year event and $987 million for a 1-in-250 year event, according to catastrophe models.
• We have issued universal life contracts with guaranteed minimum returns, referred to as bank-owned life insurance contracts (BOLIs).
• A+ (Superior) ratings from A.M. Best for our standard market property casualty insurance group and each subsidiary.
• Our status as an insurance holding company with no direct operations could affect our ability to pay dividends in the future. Dividends from our lead insurance subsidiary are restricted by Ohio insurance laws, with maximum dividend limited to the greater of 10% of statutory capital and surplus or 100% of statutory net income for the prior calendar year; dividends exceeding the statutory limit require prior approval of the Ohio Department of Insurance.
• A failure to comply with covenants and other requirements under our credit facilities, senior debt and other debt obligations could have a material adverse effect on us and our ability to access the credit markets.
• We have concentration of risks in the construction sector.