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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Copyright © 2024 Cincinnati Financial Corporation. All rights reserved. Do not reproduce or post online, in whole or in part, without written permission.
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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Copyright © 2024 Cincinnati Financial Corporation. All rights reserved. Do not reproduce or post online, in whole or in part, without written permission.
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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Copyright © 2024 Cincinnati Financial Corporation. All rights reserved. Do not reproduce or post online, in whole or in part, without written permission.
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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Copyright © 2024 Cincinnati Financial Corporation. All rights reserved. Do not reproduce or post online, in whole or in part, without written permission.
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.