Cincinnati Financial : CINF Investor Handout

CINF

INVESTOR HANDOUT

AUGUST 2024

NASDAQ: CINF

This presentation contains forward-looking statements that involve risks and uncertainties. Please refer to our various filings with the U.S. Securities and Exchange Commission for factors that could cause results to materially differ from those discussed.

The forward-looking information in this presentation has been publicly disclosed, most recently on July 25, 2024, and should be considered to be effective only as of that date.

Its inclusion in this document is not intended to be an update or reaffirmation of the forward-looking information as of any later date.

Reconciliations of non-GAAP measures are in our most recent quarterly earnings news release, which is available at cinfin.com/investors.

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STRATEGY OVERVIEW

CUMULATIVE TOTAL RETURN*

Cincinnati Financial Corporation S&P 500 Index S&P Composite 1500 Property & Casualty Insurance Index

$239 $239

$200

$207

$195

$188

$176

$156

$159

$154

$164

$152

$146

$139

$131

$124

$119

$130

2019

2020

2021

2022

2023

YTD 7-29-24

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LONG-TERM VALUE CREATION

INCREASE VALUE FOR SHAREHOLDERS

MEASURED BY VALUE CREATION RATIO

Target for the next five-year period: Annual VCR averaging 10% to 13%

30%

25%

20%

15%

10%

Ratio

5%

Creation

0%

-5%

Value

-10%

-15%

-20%

2019

2020

2021

2022

2023

Actual VCR:

30.5%

14.7%

25.7%

(14.6)%

19.5%

VCR - Investment Income & Other

VCR - P&C Underwriting

VCR - Bond Portfolio Gains

VCR - Equity Portfolio Gains

Total Shareholder Return (TSR)

40%

30%

20%

10%

0%

-10%

-20%

Total Shareholder Return

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PERFORMANCE TARGETS & TRENDS

SECOND-QUARTER 2024 HIGHLIGHTS

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STRATEGIES FOR LONG-TERM SUCCESS

MANAGE INSURANCE PROFITABILITY

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DRIVE PREMIUM GROWTH

SELECT GROUP OF AGENCIES IN 46 STATES

2,171 agency relationships with 3,260 locations

(as of June 30, 2024)

Our Commercial Top Five = 36%

Ohio, Illinois, Pennsylvania,

North Carolina, Indiana

Our Personal Top Five = 46%

Ohio, New York, California,

Georgia, Illinois

P&C Market Share:

Market Share Top Five

Ohio: 4.3%

1% and higher

Montana: 2.8%

Less than 1%

Vermont: 2.4%

Inactive states

Kentucky: 2.2%

Indiana: 2.1%

Headquarters

Based on 2023 data excluding A&H, Flood and Crop

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PREMIUM GROWTH POTENTIAL

STEADILY INCREASE OUR SHARE WITHIN APPOINTED AGENCIES

Market share per agency reporting location by year appointed

Based on 2023 standard market P&C agency written premiums

0.3%

(Excludes excess and surplus lines)

8.4%

3.1%

1.3%

1 year or less

2-5 years

6-10 years

10 years or more

MARKET FOR 75% OF AGENCY'S TYPICAL RISKS

2023 NET EARNED PREMIUMS

Consolidated

$7.958 Billion

Commercial

E&S Lines 7%

Lines 53%

Property Casualty

$7.645

Life 4%

Billion

Cincinnati

Global 3%

Excess & Surplus

Cincinnati Re 7%

Other 10%

7%

Homeowner 14%

Personal Auto 9%

Other Comm 5%

Other Personal 4%

Personal Lines

Workers'

26%

Compensation 4%

Commercial

Commercial Auto

Property 17%

Commercial

11%

Casualty 19%

Approximately 15% of commercial premiums = policies with average annual premiums <$10,000 & 35% >$100,000; 84% HO accounts include auto

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CINCINNATI FINANCIAL AT A GLANCE

53%

Commercial

26%

Personal

7% Excess & Surplus

4%

Life

7%

Cincinnati Re

3% Cincinnati Global

Appendix

Income, Dividend & Cash Flow Trends

Reserve Adequacy & Prior Accident Year Development

Pricing Precision, Premium Growth & Profit Trends

Investment Portfolio Management & Performance

Reinsurance Ceded Program & Additional Agency Statistics

Financial Strength Ratings & Valuation Comparison to Peers

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INCOME AND SHAREHOLDER DIVIDENDS

$17.00 $15.00 $13.00 $11.00 $9.00 $7.00 $5.00 $3.00 $1.00 -$1.00-$3.00-$5.00

Per share basis

2021 net income

included $11.69 net investment gain while 2022 included $7.30 net investment loss

2019 net income

included $7.90 net

investment gain while

2018 included $1.94

net investment loss

2019

2020

2021

2022

2023

6 mos 23

6 mos 24

Non-GAAP Operating Income

Net Income

Ordinary dividends declared

STRONG OPERATING CASH FLOW

CONTRIBUTED TO $680M OF YTD 6-30-24 NET PURCHASES IN INVESTMENT PORTFOLIO

(In millions)

$2,200 $2,000 $1,800 $1,600 $1,400 $1,200 $1,000

$800 $600 $400 $200 $0

2019

2020

2021

2022

2023

6 mos 23

6 mos 24

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CASH DIVIDEND PAYOUT RATIO

STRONG CAPITAL, CASH FLOW SUPPORT PAYOUT LEVELS

120%

100%

80%

60%

40%

20%

0%

34% average payout for 2014 through 2023

(net income basis)

2014

2015

2016

2017*

2018

2019

2020

2021

2022**

2023

Dividend Payout Ratio - Net Income

Dividend Payout Ratio - Operating Income

DIVIDEND AS A PERCENTAGE OF

NET CASH FLOW FROM OPERATIONS

40%

35%

30%

25%

20%

15%

10%

5%

0%

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

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Disclaimer

Cincinnati Financial Corporation published this content on 22 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on August 22, 2024 at 13:05:01 UTC.