Shareholders' Equity And Dividend Restrictions

12 Months Ended

Dec. 31, 2024

Shareholders Equity And Dividend Restrictions [Abstract]

Shareholders' Equity And Dividend Restrictions

Shareholders’ Equity and Dividend Restrictions

Declared cash dividends per share were $3.24, $3.00 and $2.76 for the years ended December 31, 2024, 2023 and 2022, respectively.

Our lead insurance subsidiary, The Cincinnati Insurance Company, paid dividends to the parent company of $290 million, $526 million and $729 million in 2024, 2023 and 2022, respectively. State regulatory requirements restrict the dividends insurance subsidiaries can pay. Generally, the most our lead insurance subsidiary can pay without prior regulatory approval is the greater of 10% of statutory capital and surplus or 100% of statutory net income for the prior calendar year. Dividends exceeding these limitations may be paid only with approval of the insurance department of the domiciliary state. During 2025, the total that our lead insurance subsidiary may pay in dividends is approximately $1.245 billion.

Dividend payments from Cincinnati Global to the parent company are subject to regulation by U.K. law. Cincinnati Global paid no dividends to the parent company in 2024, 2023 or 2022.

Accumulated Other Comprehensive Income

The table below shows beginning and end of year accumulated other comprehensive income (AOCI) for investments, pension obligations, life policy reserves, reinsurance recoverable and other. The changes from the beginning of year to the end of year are the result of changes to other comprehensive income or loss (OCI).


(Dollars in millions)	2024						2023						2022
	Before tax		Income tax		Net		Before tax		Income tax		Net		Before tax		Income tax		Net
Investments:
AOCI, January 1	$	(570)	$	(123)	$	(447)	$	(847)	$	(182)	$	(665)	$	792	$	165	$	627


OCI before investment gains and losses, net, recognized in net income	(99)		(20)		(79)		255		55		200		(1,642)		(347)		(1,295)
Investment gains and losses, net, recognized in net income	116		24		92		22		4		18		3		—		3
OCI	17		4		13		277		59		218		(1,639)		(347)		(1,292)

AOCI, December 31	$	(553)	$	(119)	$	(434)	$	(570)	$	(123)	$	(447)	$	(847)	$	(182)	$	(665)

Pension obligations:
AOCI, January 1	$	30	$	8	$	22	$	36	$	9	$	27	$	27	$	7	$	20
OCI excluding amortization recognized in net income	44		9		35		2		1		1		12		2		10
Amortization recognized in net income	1		—		1		(8)		(2)		(6)		(3)		—		(3)
OCI	45		9		36		(6)		(1)		(5)		9		2		7
AOCI, December 31	$	75	$	17	$	58	$	30	$	8	$	22	$	36	$	9	$	27

Life policy reserves, reinsurance recoverable and other:
AOCI, January 1	$	(13)	$	(3)	$	(10)	$	29	$	5	$	24	$	(444)	$	(94)	$	(350)


OCI before investment gains and losses, net, recognized in net income	98		21		77		(42)		(8)		(34)		473		99		374
Investment gains and losses, net, recognized in net income	—		—		—		—		—		—		—		—		—
OCI	98		21		77		(42)		(8)		(34)		473		99		374
AOCI, December 31	$	85	$	18	$	67	$	(13)	$	(3)	$	(10)	$	29	$	5	$	24

Summary of AOCI:
AOCI, January 1	$	(553)	$	(118)	$	(435)	$	(782)	$	(168)	$	(614)	$	375	$	78	$	297


Investments OCI	17		4		13		277		59		218		(1,639)		(347)		(1,292)
Pension obligations OCI	45		9		36		(6)		(1)		(5)		9		2		7
Life policy reserves, reinsurance recoverable and other OCI	98		21		77		(42)		(8)		(34)		473		99		374
Total OCI	160		34		126		229		50		179		(1,157)		(246)		(911)

AOCI, December 31	$	(393)	$	(84)	$	(309)	$	(553)	$	(118)	$	(435)	$	(782)	$	(168)	$	(614)

Investment gains and losses, net, and other investment gains and losses, net, are recorded in the investment gains and losses, net, line item in the consolidated statements of income. Amortization on pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses line items in the consolidated statements of income.