Cincinnati Financial Corp.

Strong Financial Performance: - Cincinnati Financial Corporation reported a net income of $405 million for Q4 2024, a 24% increase year-over-year. - Non-GAAP operating income rose by 38% to $497 million for the fourth quarter, while full-year growth was 26%. - The property casualty combined ratio improved to 84.7% in Q4 2024, a 2.8 percentage point decrease from the prior year, resulting in a full-year combined ratio of 93.4%.

Catastrophe Loss Estimates: - The company has estimated Q1 2025 pretax catastrophe losses from the California wildfires to be between $450 million and $525 million after reinsurance recoveries. This figure includes approximately 73% attributed to personal lines and suggests significant challenges ahead.

Reinsurance Outlook: - Cincinnati Financial expects a tightening reinsurance market post-wildfires and plans to maintain strong relationships with reinsurers. The company restructured its reinsurance program to add $300 million in coverage, demonstrating proactive risk management.