The Cincinnati Financial Corp. announced that A.M. Best Co. this week affirmed its insurance subsidiaries’ financial strength ratings with stable outlooks. Best affirmed its highest “A++” (superior) financial strength rating for the Cincinnati Insurance Cos. property/ casualty group.
About 9 percent of insurer groups receive ratings in the superior category, and less than 2 percent receive the highest rating, “A++.”
In other action, Best affirmed Cincinnati Financial’s debt rating of “aa-” on the company’s 6.125 percent senior notes due 2034 and
assigned a senior debt rating of “aa-” to the company’s newly issued
6.92 percent senior debentures that were offered in exchange for the
outstanding 6.90 percent senior debentures due 2028. Also, the ratings agency assigned issuer credit ratings of “aa-” to Cincinnati Financial Corp., “aaa” to the Cincinnati Insurance Cos.
In affirming the property/casualty group’s insurer financial strength ratings, Best cited superior risk-based capitalization, very strong operating performance and a successful business position developed through building a network of independent agents to market Cincinnati’s packaged policies in selected states. Best also noted Cincinnati’s very strong overall underwriting results with a 2004 statutory combined ratio of 89.4 percent.
Best said it expects Cincinnati’s overall operating results and capitalization will remain strong in the near term.
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