Cincinnati Financial Corporation

Good morning and welcome to the Cincinnati Financial Corporation Third Quarter 2026 Earnings Conference Call. All participants are in a listen-only mode. After the speaker's remarks, we will conduct a question and answer session. To ask a question at this time, you will need to press star followed by the number one on your telephone keypad. As a reminder, this conference call is being recorded. I would now like to turn the call over to Andy Gothard, Investor Relations Officer. Thank you. Please go ahead.

Good morning. and thank you for joining us for our third quarter 2026 earnings conference call. Late yesterday, we issued the news release on our results along with our supplemental financial package, including our quarter end investment portfolio. To find copies of any of these documents, please visit our investor website, investors.sinpin.com. The shortest route to the information is the quarterly results section near the middle of the investor overview page. On this call, you'll first hear from President and Chief Executive Officer, Steve Spray, and then from Executive Vice President and Chief Financial Officer Mike Sewell. After their prepared remarks, investors participating on the call may ask questions. At that time, some responses may be made by others in the room with us, including Executive Chairman Steve Johnston, Chief Investment Officer Steve Soloria and Cincinnati Insurance's Chief Claims Officer Mark Shambo and Senior Vice President of Corporate Finance Andy Schnell. Please note that some of the matters to be discussed today are forward looking. These forward-looking statements involve certain risks and uncertainties. With respect to these risks and uncertainties, we direct your attention to our news release and to our various filings with the SEC. Also, a reconciliation of non-GAAP measures was provided with the news release. Statutory accounting data is prepared in accordance with statutory accounting rules and therefore is not reconciled to GAAP. Now, I'll turn the call over to Steve.

Good morning, and thank you for joining us today to hear more about our results. We had another quarter of strong operating performance that reinforces our confidence in the long-term direction of our business. Our insurance operations produced excellent underwriting results, even as the property casualty combined ratio increased from last year's exceptional level. Net income of $459 million for the third quarter of 2026 included recognition of less than $1 million on an after-tax basis for the increase in fair value of equity securities still held. Non-GAAP operating income was $443 million for the quarter, down only $6 million from a year ago, despite catastrophe losses that were $146 million higher on an after-tax basis. The 90.9% third quarter 2026 property casualty combined ratio increased by 2.7 percentage points compared with third quarter last year, including an increase of 7.0 points for catastrophe losses. Our current accident year combined ratio before catastrophe losses for the first nine months of 2026 was 86.5%, improving slightly compared with the 86.7% reported through the first nine months of 2025. Moving to premium growth, our consolidated property casualty net written premiums grew 2% for the quarter. Premium growth moderated as expected, reflecting our commitment to pricing discipline, careful risk selection, and segmentation on a policy by policy basis. Estimated average renewal price increases for most lines of business during the third quarter were lower than the second quarter of 2026, but still at levels we believe were healthy. Commercial lines and excess and surplus lines averaged increases in the low single-digit percentage range. Our personal line segment included homeowner increases in the high single-digit percentage range and personal auto increases in the mid single-digit range. Although market conditions continue to be challenging, we remain confident that our diverse product portfolio, exceptional service, and strong relationships with independent insurance agents provide a solid foundation for long-term success. Next, I'll highlight third quarter performance by insurance segment compared with a year ago. The commercial lines combined ratio was 92.8%, an increase of 1.7 percentage points, including 4.3 points from higher catastrophe losses. Net written premiums grew less than 1%. Personal lines grew net written premiums 1%. Impacted by lower new business premiums that reflect continued softening market conditions. The combined ratio for purse lines was 90.3%, just 2.1 percentage points higher than last year, despite an increase of 12.1 points from higher catastrophe losses. Excess and surplus lines grew net written premiums 5% and produced another excellent combined ratio of 89.4%. Cincinnati RE and Cincinnati Global both contributed meaningfully to premium growth and continue to provide diversification benefits for our insurance operations. Cincinnati RE's third quarter 2026 net written premiums increased by 34%. Its combined ratio was 94.8%. Cincinnati Global grew 13% while maintaining an impressive 70.7% combined ratio. Our life insurance subsidiary had another solid quarter, including 11% net income growth. In addition, term life insurance earned premiums grew 2%. Now, I'll give a summary of our primary measure of long-term financial performance, the value creation ratio. Our VCR was negative 2.1% for the third quarter of 2026. Net income before investment gains or losses for the quarter contributed 2.7%, or overall valuation of our investment portfolio and other items contributed negative 4.8%. Before I hand the call to Mike, I wanted to give you an update on our ongoing investments in data, technology, and artificial intelligence. We continue to prioritize applications of generative and agentic AI that can improve the efficiency and effectiveness of our associates. We want to optimize their efforts, allowing them to add more value to our business, deepening relationships, sharing expertise, and focusing their energy on the most complex insurance and technology decisions. I'll give you two examples of AI applications that are in production today that we believe have already and will continue to produce meaningful benefits across the organization. Many other use cases exist in varying stages of development from design all the way through production. First, our AI center of excellence is harnessing cloud provider large language models to create reusable internal capabilities that can be adapted for additional business areas where the use case and supporting evidence are strong. So far, we've developed seven proprietary intelligent assistants for associates to use in areas such as underwriting, claims, and loss control. These assistants, along with other tools we've deployed, reduce the time spent on information-intensive tasks such as summarizing underwriting and claims files and understanding internal appetite and risk guidance. We are applying automation and AI-enabled capabilities within selected new business and commercial service workflows. More specifically, we are using these capabilities to process new business submissions received by email, enabling us to accelerate quote delivery by more than 30% across our commercial lines and excess and surplus lines businesses. Our approach is disciplined, We establish a baseline, evaluate the operating results, ensure we have strong governance and controls, and then expand the capability only where the evidence supports it. Because our agents tell us that speed to quote is a key variable as we compete for business, we believe reducing the average time to quote will positively support our continued profitable growth. Now I'll turn it over to Chief Financial Officer Mike Sewell for additional insights regarding our financial performance.