AM Best Affirms Credit Ratings of Cincinnati Financial Corporation and Subsidiaries
- March 05, 2026 01:45 PM (EST)
//BestWire// - AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa” (Superior) of the property/casualty (P/C) insurance subsidiaries of Cincinnati Financial Corporation (CFC) and The Cincinnati Life Insurance Company. Additionally, AM Best has affirmed the Long-Term ICR of “a” (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IR) of CFC. The outlook of these Credit Ratings (ratings) is stable. All companies except The Cincinnati Specialty Underwriters Insurance Company (CSU) are domiciled in Fairfield, OH. CSU is domiciled in Delaware. (See below for a detailed listing of the P/C companies and Long-Term IRs.)
The ratings reflect CFC’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.
CFC maintains the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by a conservative operating strategy with strict underwriting guidelines, resulting in favorable reserve development for over 30 consecutive years. Adjusted financial leverage was 4.9% at year-end 2025, as measured by AM Best, and interest coverage is considered to be strong. Additionally, CFC maintains an extensive stock portfolio consisting of dividend-paying stocks, which supplements interest investment income. While this portfolio exposes surplus and risk-adjusted capitalization to equity market fluctuations, CFC has been able to manage these risks over a prolonged period of time. AM Best believes capitalization will remain supportive of CFC’s ratings.
CFC is predominantly a P/C group of insurers that markets its products primarily through independent agencies. The group has recorded underwriting profits each year since 2012, with operating metrics that generally outperform its peers. AM Best believes CFC has adequate capital and financial flexibility to meet any near-term liquidity needs, and CFC also maintains a comprehensive reinsurance program with highly rated reinsurance partners.
CFC has a favorable business profile assessment supported by its diversified portfolio of commercial and personal lines of business, as well as its life and non-admitted insurance products. Contributing to the favorable business profile is CFC’s growing global geographic footprint and the group’s strong U.S. P/C market position. The group maintains a risk management framework that appropriately addresses the risks inherent in its profile, and its risk management capabilities generally meet or exceed its risk profile.
The FSR of A+ (Superior) and the Long-Term ICRs of “aa” (Superior) have been affirmed with stable outlooks for The Cincinnati Insurance Company and its P/C subsidiaries:
- The Cincinnati Indemnity Company
- The Cincinnati Casualty Company
- The Cincinnati Specialty Underwriters Insurance Company
The FSR of A+ (Superior) and the Long-Term ICR of “aa” (Superior) have been affirmed with stable outlooks for The Cincinnati Life Insurance Company.
The following Long-Term IRs have been affirmed with stable outlooks:
Cincinnati Financial Corporation—
- “a” (Excellent) on $28.0 million 6.90% senior unsecured debentures, due 2028
- “a” (Excellent) on $374 million 6.125% senior unsecured notes, due 2034 - “a” (Excellent) on $391 million 6.92% senior unsecured debentures, due 2028
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings (BCR), Best’s Performance Assessments (PA), Best’s Preliminary Credit Assessments (PCA) and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.