| Metric / Period                                         | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------------------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Current Accident Year Losses > $5M ($M)                 | **44**  **[0000020286-23-000005_exhibit992q422.htm:8]**  | **36**  **[0000020286-23-000044_cinf-20230331.htm:35]**  | **43**  **[0000020286-23-000058_cinf-20230630.htm:44]**  | **24**  **[0000020286-23-000075_cinf-20230930.htm:45]**  | **38**  **[0000020286-24-000008_exhibit992q423.htm:8]**  | **0**  **[0000020286-24-000030_cinf-20240331.htm:32]**  | **31**  **[0000020286-24-000048_cinf-20240630.htm:41]**  | **18**  **[0000020286-24-000063_cinf-20240930.htm:43]**  |
| Large Loss Prior Accident Year Reserve Development ($M) | **14**  **[0000020286-23-000005_exhibit992q422.htm:11]**  | **9**  **[0000020286-23-000043_exhibit9921q23.htm:5]**  | **19**  **[0000020286-23-000057_exhibit9922q23.htm:6]**  | **32**  **[0000020286-23-000075_cinf-20230930.htm:45]**  | **34**  **[0000020286-24-000008_exhibit992q423.htm:8]**  | **22**  **[0000020286-24-000029_exhibit9921q24.htm:5]**  | **15**  **[0000020286-24-000047_exhibit9922q24.htm:6]**  | **19**  **[0000020286-24-000063_cinf-20240930.htm:43]**  |
| Losses Incurred But Not Reported ($M)                   | N/A     | **179**  **[0000020286-23-000043_exhibit9921q23.htm:5]**  | **96**  **[0000020286-23-000057_exhibit9922q23.htm:6]**  | **150**  **[0000020286-23-000075_cinf-20230930.htm:45]**  | **122**  **[0000020286-24-000008_exhibit992q423.htm:8]**  | **251**  **[0000020286-24-000030_cinf-20240331.htm:32]**  | **165**  **[0000020286-24-000047_exhibit9922q24.htm:6]**  | **185**  **[0000020286-24-000063_cinf-20240930.htm:43]**  |
| Catastrophe Losses ($M)                                 | **141**  **[0000020286-23-000002_exhibit99101-27x23.htm:1]**  | **253**  **[0000020286-23-000044_cinf-20230331.htm:31]**  | **217**  **[0000020286-23-000057_exhibit9922q23.htm:6]**  | **170**  **[0000020286-23-000075_cinf-20230930.htm:45]**  | **37**  **[0000020286-24-000014_cinf-20231231.htm:81]**  | **149**  **[0000020286-24-000030_cinf-20240331.htm:28]**  | **228**  **[0000020286-24-000047_exhibit9922q24.htm:6]**  | **306**  **[0000020286-24-000062_exhibit9913q24.htm:2]**  |
| Effective Duration of Fixed-Maturity Portfolio (Years)  | **4.7**  **[0000020286-23-000008_cinf-20221231.htm:138]**  | **4.6**  **[0000020286-23-000044_cinf-20230331.htm:57]**  | **4.6**  **[0000020286-23-000058_cinf-20230630.htm:71]**  | **4.7**  **[0000020286-23-000075_cinf-20230930.htm:72]**  | **4.3**  **[0000020286-24-000014_cinf-20231231.htm:139]**  | **4.3**  **[0000020286-24-000030_cinf-20240331.htm:53]**  | **4.4**  **[0000020286-24-000048_cinf-20240630.htm:68]**  | **4.6**  **[0000020286-24-000063_cinf-20240930.htm:70]**  |
| Number of Fixed-Maturity Securities Below Cost          | **3,272**  **[0000020286-23-000008_cinf-20221231.htm:140]**  | **2,900**  **[0000020286-23-000044_cinf-20230331.htm:61]**  | **3,452**  **[0000020286-23-000058_cinf-20230630.htm:74]**  | **4,490**  **[0000020286-23-000075_cinf-20230930.htm:75]**  | **2,840**  **[0000020286-24-000014_cinf-20231231.htm:141]**  | **3,329**  **[0000020286-24-000030_cinf-20240331.htm:56]**  | **3,784**  **[0000020286-24-000048_cinf-20240630.htm:71]**  | **2,495**  **[0000020286-24-000063_cinf-20240930.htm:73]**  |
| Fair Value of Fixed-Maturity Securities Below Cost ($B) | **12.132**  **[0000020286-23-000005_exhibit991q422.htm:15]**  | **9.038**  **[0000020286-23-000044_cinf-20230331.htm:61]**  | **10.381**  **[0000020286-23-000058_cinf-20230630.htm:74]**  | **12.203**  **[0000020286-23-000075_cinf-20230930.htm:75]**  | **9.252**  **[0000020286-24-000014_cinf-20231231.htm:142]**  | **10.057**  **[0000020286-24-000030_cinf-20240331.htm:56]**  | **11.342**  **[0000020286-24-000048_cinf-20240630.htm:71]**  | **7.724**  **[0000020286-24-000063_cinf-20240930.htm:73]**  |
| Unrealized Losses on Fixed-Maturity Securities ($M)     | **1,639**  **[0000020286-23-000008_cinf-20221231.htm:113]**  | **776**  **[0000020286-23-000044_cinf-20230331.htm:60]**  | **900**  **[0000020286-23-000058_cinf-20230630.htm:73]**  | **1,236**  **[0000020286-23-000075_cinf-20230930.htm:74]**  | **687**  **[0000020286-24-000014_cinf-20231231.htm:141]**  | **714**  **[0000020286-24-000030_cinf-20240331.htm:55]**  | **767**  **[0000020286-24-000048_cinf-20240630.htm:71]**  | **404**  **[0000020286-24-000063_cinf-20240930.htm:73]**  |

9fecde4af1144c0d7d75274fee32fb1c3df4ce83a9f76d4a54116a717269ab6e

| Metric [Unit: $ Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Commercial Lines Insurance** | N/A     | N/A     | **1,067**  **[0000020286-23-000058_cinf-20230630.htm:28]**  | **1,063**  **[0000020286-23-000075_cinf-20230930.htm:29]**  | N/A     | **1,083**  **[0000020286-24-000030_cinf-20240331.htm:19]**  | **1,108**  **[0000020286-24-000048_cinf-20240630.htm:26]**  | **1,137**  **[0000020286-24-000063_cinf-20240930.htm:26]**  |
| **Personal Lines Insurance**   | N/A     | N/A     | **494**  **[0000020286-23-000058_cinf-20230630.htm:28]**    | **528**  **[0000020286-23-000075_cinf-20230930.htm:29]**    | N/A     | **589**  **[0000020286-24-000029_exhibit9911q24.htm:4]**   | **632**  **[0000020286-24-000048_cinf-20240630.htm:26]**   | **678**  **[0000020286-24-000062_exhibit9913q24.htm:4]**  |
| **Excess and Surplus Lines Insurance** | N/A     | N/A     | **133**  **[0000020286-23-000058_cinf-20230630.htm:28]**    | **136**  **[0000020286-23-000075_cinf-20230930.htm:29]**    | N/A     | **140**  **[0000020286-24-000029_exhibit9911q24.htm:5]**   | **152**  **[0000020286-24-000048_cinf-20240630.htm:26]**   | **157**  **[0000020286-24-000062_exhibit9913q24.htm:5]**  |
| **Life Insurance**             | **95**  **[0000020286-23-000005_exhibit992q422.htm:5]**  | **77**  **[0000020286-23-000043_exhibit9921q23.htm:4]**  | **83**  **[0000020286-23-000058_cinf-20230630.htm:28]**     | **79**  **[0000020286-23-000075_cinf-20230930.htm:29]**     | N/A     | **80**  **[0000020286-24-000030_cinf-20240331.htm:19]**    | **83**  **[0000020286-24-000048_cinf-20240630.htm:26]**    | **80**  **[0000020286-24-000062_exhibit9923q24.htm:5]**   |
| **Investments**                | **1,235**  **[0000020286-23-000005_exhibit992q422.htm:5]**  | **316**  **[0000020286-23-000043_exhibit9921q23.htm:4]**  | **654**  **[0000020286-23-000058_cinf-20230630.htm:28]**    | **(231)**  **[0000020286-23-000075_cinf-20230930.htm:29]**  | N/A     | **857**  **[0000020286-24-000030_cinf-20240331.htm:19]**   | **379**  **[0000020286-24-000048_cinf-20240630.htm:26]**   | **1,016**  **[0000020286-24-000063_cinf-20240930.htm:26]**  |
| **Other Revenues**             | **3**  **[0000020286-23-000005_exhibit992q422.htm:5]**  | N/A     | **174**  **[0000020286-23-000058_cinf-20230630.htm:28]**    | **236**  **[0000020286-23-000075_cinf-20230930.htm:29]**    | N/A     | **186**  **[0000020286-24-000030_cinf-20240331.htm:19]**   | **190**  **[0000020286-24-000048_cinf-20240630.htm:26]**   | **248**  **[0000020286-24-000063_cinf-20240930.htm:26]**  |

2b37d414dbf2b9828029ffe1592504ee984b5bc810e6104be5c18806918dea4b

Cincinnati Financial Corporation operates primarily in the property casualty insurance and life insurance industries, conducting its main business activities through The Cincinnati Insurance Company and its subsidiaries **[0000020286-24-000014_cinf-20231231.htm:3]** **[0000020286-24-000014_cinf-20231231.htm:14]**. The company offers a diverse range of insurance products, including commercial lines, personal lines, excess and surplus lines, and life insurance, along with investment services **[0000020286-24-000048_cinf-20240630.htm:26]**. Cincinnati Financial Corporation's strategic focus on independent agency relationships and its varied product lines contribute to its revenue and growth **[0000020286-24-000014_cinf-20231231.htm:4]**.

1. **Commercial Lines Insurance** - Provides a wide range of insurance products tailored for businesses, contributing significantly to the company's revenue **[0000020286-24-000014_cinf-20231231.htm:15]**.
2. **Personal Lines Insurance** - Offers insurance products for individuals, including homeowners and auto insurance, supporting a substantial portion of the company's revenue **[0000020286-24-000014_cinf-20231231.htm:18]**.
3. **Excess and Surplus Lines** - Delivers specialized insurance solutions for unique and high-risk situations not typically covered by standard insurance policies.
4. **Life Insurance** - Includes term, whole, and universal life insurance products, catering to the life insurance needs of individuals **[0000020286-24-000014_cinf-20231231.htm:22]** **[0000020286-24-000014_cinf-20231231.htm:106]**.
5. **Cincinnati Re** - Engages in reinsurance activities, providing additional risk management solutions.
6. **Cincinnati Global** - Focuses on global specialty underwriting, expanding the company's reach in international markets **[0000020286-24-000014_cinf-20231231.htm:27]**.
7. **CFC Investment Company** - Offers commercial leasing and financing services, diversifying the company's business operations beyond insurance **[0000020286-24-000014_cinf-20231231.htm:3]** **[0000020286-24-000014_cinf-20231231.htm:27]**.

4fa119594c10357978b2752f73e255a044f4a9c6ec07434533c194e9494ada01

1. Your Personal Lines segment reported a combined ratio of **110.3%**, which is **10.4 percentage points higher than last year**, largely due to an increase of **12.7 points from higher catastrophe losses**  **[CINF_3404022_1]** . Given this impact, how do you plan to improve underwriting profitability in Personal Lines while managing catastrophe exposure?

2. The Excess and Surplus Lines segment experienced **unfavorable reserve development on prior accident years**, contributing to a higher combined ratio despite premium growth  **[CINF_3404022_1]** **[CINF_3404022_10]** **[CINF_3404022_14]** . Can you elaborate on the factors driving this unfavorable development and the steps you're taking to address them?

3. In Commercial Casualty, you've noted an elevation in the loss pick due to **higher case incurred losses that were more severity than frequency**, leading to increased IBNR reserves  **[CINF_3404022_6]** **[CINF_3404022_12]** . How does this affect your confidence in reserve adequacy, and what measures are in place to mitigate emerging loss trends in this line?

4. With net written premiums growing significantly across all segments—including **29% in Personal Lines** and **23% in Excess and Surplus Lines**  **[CINF_3404022_1]** —how sustainable is this rapid growth, and are you concerned about a "new business penalty" affecting future profitability?

5. You've mentioned **"playing offense" in Commercial Casualty** despite higher booked loss ratios  **[CINF_3404022_8]** . What gives you confidence in your pricing and reserving strategies in this challenging market, and how are you mitigating potential risks associated with aggressive growth?

1d58a25845a9bc3e814c58882f394c823747721286d8fd7652a32ed3d9c0ba69

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Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

5b000cc4c74dee91d0c76564116b93b545ea03f9028be46e70fadaf5ded5ea97

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

SG&A (USD, millions)

R&D (USD, millions)

Depreciation and Amortization (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

EPS - Basic (USD, per share)

EPS - Diluted (USD, per share)

0f08f11680afb6fb0b4c0db5fd9a7f3592019ba7fb97fafa2fe462835e70442f

0f23698c2a7f306a6820d5eb3cbb2049838bb60b901a2fd61f6b0db019cc7223

Current Accident Year Losses > $5M ($M)

Large Loss Prior Accident Year Reserve Development ($M)

Losses Incurred But Not Reported ($M)

Catastrophe Losses ($M)

Effective Duration of Fixed-Maturity Portfolio (Years)

Number of Fixed-Maturity Securities Below Cost

Fair Value of Fixed-Maturity Securities Below Cost ($B)

Unrealized Losses on Fixed-Maturity Securities ($M)

abf7c954745f951dabf997c66eb5d55692a1d6a0cc2d20bd5e8e348ce78d75d4

| Name                  | Position                                                                 | Start Date | Short Bio                                                                                                                                                                                                                       |
|-----------------------|--------------------------------------------------------------------------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Steven J. Johnston    | Chairman and Chief Executive Officer                                     | 2011       | Steven J. Johnston has been serving as the **Chairman and Chief Executive Officer** of Cincinnati Financial Corporation since **2011**. He became the chairman of the board in **2020**  **[0000020286-24-000021_cinf-20240319.htm:10]** **[0000020286-23-000023_cinf-20230321.htm:10]** **[0000020286-23-000012_cinf-20230301.htm:8]** .                               |
| Stephen M. Spray      | President and Chief Executive Officer                                    | 2024       | Stephen M. Spray is the **President and Chief Executive Officer** of Cincinnati Financial Corporation. He has been with the company since **1991** and became CEO in **2024**  **[0000020286-24-000021_cinf-20240319.htm:12]** **[0000020286-24-000021_cinf-20240319.htm:2]** .                                           |
| Michael J. Sewell     | Chief Financial Officer, Executive Vice President, and Treasurer         | 2022       | Michael J. Sewell, CPA, serves as the **Chief Financial Officer, Executive Vice President, and Treasurer** of Cincinnati Financial Corporation since **2022**  **[0000020286-24-000014_cinf-20231231.htm:215]** .                                                               |
| John S. Kellington    | Chief Information Officer and Executive Vice President                   | 2022       | John S. Kellington is the **Chief Information Officer and Executive Vice President** of The Cincinnati Insurance Company since **2022**  **[0000020286-24-000014_cinf-20231231.htm:214]** .                                                                                    |
| Teresa C. Cracas      | Chief Risk Officer and Executive Vice President                          | 2022       | Teresa C. Cracas serves as the **Chief Risk Officer and Executive Vice President** of The Cincinnati Insurance Company since **2022**  **[0000020286-24-000014_cinf-20231231.htm:214]** **[0000020286-23-000008_cinf-20221231.htm:207]** .                                                                                   |
| Roger A. Brown        | Senior Vice President and Chief Operating Officer of The Cincinnati Life Insurance Company | 2016       | Roger A. Brown serves as the **Senior Vice President and Chief Operating Officer** of The Cincinnati Life Insurance Company since **2016**  **[0000020286-24-000014_cinf-20231231.htm:214]** .                                                                                 |
| Angela O. Delaney     | Senior Vice President of The Cincinnati Insurance Company                | 2020       | Angela O. Delaney is the **Senior Vice President of The Cincinnati Insurance Company** since **2020**  **[0000020286-24-000014_cinf-20231231.htm:214]** .                                                                                                                      |
| Donald J. Doyle, Jr.  | Senior Vice President of The Cincinnati Insurance Company                | 2008       | Donald J. Doyle, Jr. serves as the **Senior Vice President** of The Cincinnati Insurance Company since **2008**  **[0000020286-24-000014_cinf-20231231.htm:214]** .                                                                                                            |
| Sean M. Givler        | Senior Vice President of The Cincinnati Insurance Company                | 2017       | Sean M. Givler is the **Senior Vice President of The Cincinnati Insurance Company** since **2017**  **[0000020286-24-000014_cinf-20231231.htm:214]** **[0000020286-24-000070_exhibit99112-12x24.htm:0]** .                                                                                                                      |
| Theresa A. Hoffer     | Senior Vice President and Treasurer of The Cincinnati Insurance Company  | 2017       | Theresa A. Hoffer is the **Senior Vice President and Treasurer** of The Cincinnati Insurance Company since **2017**  **[0000020286-24-000014_cinf-20231231.htm:214]** .                                                                                                        |
| Lisa A. Love          | Chief Legal Officer, Executive Vice President, and Corporate Secretary   | 2011       | Lisa A. Love, Esq., serves as the **Chief Legal Officer, Executive Vice President, and Corporate Secretary** of Cincinnati Financial Corporation since **2011**  **[0000020286-24-000014_cinf-20231231.htm:214]** **[0000020286-23-000008_cinf-20221231.htm:208]** .                                                          |
| Marc J. Schambow      | Chief Claims Officer and Senior Vice President of The Cincinnati Insurance Company | 2022       | Marc J. Schambow is the **Chief Claims Officer and Senior Vice President** of The Cincinnati Insurance Company since **2022**  **[0000020286-24-000014_cinf-20231231.htm:215]** **[0000020286-23-000008_cinf-20221231.htm:208]** .                                                                                           |
| Steven A. Soloria     | Chief Investment Officer and Executive Vice President                    | 2023       | Steven A. Soloria is the **Chief Investment Officer and Executive Vice President** of Cincinnati Financial Corporation since **2023**  **[0000020286-24-000014_cinf-20231231.htm:215]** **[0000020286-23-000008_cinf-20221231.htm:208]** .                                                                                   |
| William H. Van Den Heuvel | Senior Vice President of The Cincinnati Insurance Company            | 2014       | William H. Van Den Heuvel serves as the **Senior Vice President of The Cincinnati Insurance Company** since **2014**  **[0000020286-24-000014_cinf-20231231.htm:215]** **[0000020286-23-000008_cinf-20221231.htm:208]** .                                                                                                    |

39a33cd3439809785466554c3f1fc689c333eff295c35ac5040ed0ebfc8b1489

| Program Details            | Program 1          |
|----------------------------|--------------------|
| Approval Date              | **January 26, 2018**  **[0000020286-24-000063_cinf-20240930.htm:79]**  |
| End Date/Duration          | **No expiration date**  **[0000020286-24-000063_cinf-20240930.htm:79]**  |
| Total additional amount    | **15 million shares**  **[0000020286-24-000063_cinf-20240930.htm:79]**  |
| Remaining authorization amount | **5,651,785 shares** (as of September 30, 2024)  **[0000020286-24-000063_cinf-20240930.htm:79]**  |
| Details                    | Enhance shareholder value, offset equity compensation plans  **[0000020286-24-000014_cinf-20231231.htm:119]** **[0000020286-23-000008_cinf-20221231.htm:118]**  |

9cda0142e87df0a337a82631e00c3bcb2b4c3f708dfedd9d223dbd29453b2002

Commercial Lines

- Personal Lines

- Excess & Surplus Lines

Life Insurance

Investments

Total Revenue

88c73b70bb45c6a2dbe48994cd13dc1aa6a3480ed9487f2ce60bdc93a242d582

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 1980       | Present  | Current auditor   |  **[0000020286-24-000014_cinf-20231231.htm:147]**  |

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- Total Revenue: **$3,320** million (+83% YoY)  **[0000020286-24-000063_cinf-20240930.htm:26]** **[0000020286-23-000075_cinf-20230930.htm:2]**   
- Commercial Lines Insurance: $1,138 million (+7% YoY)  **[0000020286-24-000063_cinf-20240930.htm:26]** **[0000020286-23-000075_cinf-20230930.htm:29]**   
- Personal Lines Insurance: $680 million (+29% YoY)  **[0000020286-24-000063_cinf-20240930.htm:26]** **[0000020286-23-000075_cinf-20230930.htm:29]**   
- Excess & Surplus Lines: $157 million (+15% YoY)  **[0000020286-24-000063_cinf-20240930.htm:26]** **[0000020286-23-000075_cinf-20230930.htm:29]**   
- Investments: $1,016 million vs. -$231 million prior year  **[0000020286-24-000063_cinf-20240930.htm:26]** **[0000020286-23-000075_cinf-20230930.htm:29]**   
- Net Income: $82 million vs. -$99 million prior year  **[0000020286-24-000063_cinf-20240930.htm:2]** **[0000020286-23-000075_cinf-20230930.htm:2]**   
- EPS (Basic): $5.24 vs. -$0.63 prior year  **[0000020286-24-000063_cinf-20240930.htm:2]** **[0000020286-23-000075_cinf-20230930.htm:2]**   

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76a2d7f46aa647c1b2b2bb99434575a2ed39e2925c6e24ed89a5e3740cda33a5

| Year | Amount Due (in millions) | Debt Type            | Interest Rate (%) | % of Total Debt                     |
|----------|------------------------------|--------------------------|-----------------------|------------------------------------------|
| 2028     | 391                          | 6.920% Senior Debentures | 6.920                 | 48.0% = (391 / 815) * 100 **[0000020286-24-000063_cinf-20240930.htm:34]** **[0000020286-24-000063_cinf-20240930.htm:8]** |
| 2028     | 28                           | 6.900% Senior Debentures | 6.900                 | 3.4% = (28 / 815) * 100 **[0000020286-24-000063_cinf-20240930.htm:34]** **[0000020286-24-000063_cinf-20240930.htm:8]**  |
| 2034     | 374                          | 6.125% Senior Notes      | 6.125                 | 45.9% = (374 / 815) * 100 **[0000020286-24-000063_cinf-20240930.htm:34]** **[0000020286-24-000063_cinf-20240930.htm:8]** |
| N/A      | 25                           | Note Payable (Short-Term)| N/A                   | 3.1% = (25 / 815) * 100 **[0000020286-24-000063_cinf-20240930.htm:34]**          |

95cf69cea848aa66618d6843caa501e8e67cd9285344086710cb2ae8a43942f8

ff1b3d1acc925748a3a62f8f951f6f62ea847cb36e6eed729ecbfd6f20165cb0

- **New commercial lines business premiums increased over 30%** in the first half of the year, reflecting disciplined risk selection and pricing in a favorable market environment.  **[CINF_3394815_10]**
- The company is capitalizing on exponential growth opportunities in the **middle market personal lines** segment, supported by its strong balance sheet of **$12.7 billion of GAAP equity**.  **[CINF_3394815_21]**
- Robust growth in both **middle market and high net worth personal lines** is considered transformational, with the company leveraging sophisticated pricing and expertise to become a premier writer in this "generational" market.  **[CINF_3394815_13]**

7dc788f5e79a7d637adf54591232a5efbe154405917ac51e5383533cdd688339

1. **Commercial Casualty Loss Picks**  
   **Q:** Any changes to loss picks due to uncertainty?  
   **A:** Management is confident in their loss picks for commercial casualty but is reflecting additional uncertainty in the current accident year loss ratio. They note that rates are exceeding loss cost trends, but they recognize the need for caution due to uncertainty.  **[CINF_3381285_5]** 

2. **Cincinnati Re and Global Loss Ratios**  
   **Q:** Why did Cincinnati Re and Global loss ratios increase?  
   **A:** The underlying loss ratio for Cincinnati Re and Cincinnati Global increased due to a shift in business mix towards more pro rata reinsurance, resulting in a higher attritional loss pick but reduced volatility. This strategy has led to a less risky portfolio with strong results, including **zero catastrophe losses** and significant favorable reserve development.  **[CINF_3381285_7]** **[CINF_3381285_8]** **[CINF_3381285_9]** 

3. **Commercial Lines Growth**  
   **Q:** How is growth in Commercial Lines business?  
   **A:** The company is experiencing double-digit overall growth of **11%**, with strong new business in Commercial Lines. They maintain underwriting and pricing discipline, focusing on adequate rates on a risk-by-risk basis, which offers ample opportunity for growth without compromising profitability.  **[CINF_3381285_10]** **[CINF_3381285_14]** 

4. **Personal Auto Profitability**  
   **Q:** When will personal auto become profitable?  
   **A:** Management feels positive about their position in personal auto, expecting to reap benefits from pricing actions. The current accident year loss ratio has stabilized, and they are bullish on Personal Lines, supported by product and geographic diversification.  **[CINF_3381285_12]** **[CINF_3381285_14]** 

5. **Commercial Property Claim Inflation**  
   **Q:** Is claim inflation for commercial property decelerating?  
   **A:** The company continues to see inflation in commercial property claims, especially in insurance-related items like building materials and wages, which have higher inflation rates than general CPI. While the rate of increase is slowing, they remain cautious in their outlook.  **[CINF_3381285_20]** 

a3363d60f45242a755c3fb4f7ce0afa5661a8c36ae8640198ad33844be86ec0f

- **Strong overall growth with net written premiums up 11%, driven by strong growth in Personal Lines, indicating plenty of opportunity to grow the company.**  **[CINF_3381285_10]**
- **Cincinnati Global achieved an excellent combined ratio of 69.8% and has been a top quartile Lloyd's underwriter for three consecutive years, reflecting strong performance and diversification efforts.**  **[CINF_3381285_8]**
- **Cincinnati Re's combined ratio improved significantly, with the inception-to-date combined ratio decreasing from 101.2% in 2022 to 94.5% currently, demonstrating successful de-risking and reshaping of the portfolio.**  **[CINF_3381285_7]**

8ed6f82a961aa25549049f95f74e989816de9bd38d8410550b3d7f74d7a29bb9

1. **Commercial Casualty Reserves**

   **Q:** Are prior accident year reserves in commercial casualty adequate?

   **A:** Management is confident in their commercial casualty reserves, noting that over the last **15 years**, only **two accident years** haven't developed favorably from original estimates.  **[CINF_3394815_11]**  They've increased the IBNR ratio for commercial casualty by **10 percentage points** compared to pre-pandemic years, strengthening their reserve position.  **[CINF_3394815_11]** **[CINF_3394815_12]** 

2. **Commercial Casualty Pricing**

   **Q:** Is renewal pricing in commercial casualty strong?

   **A:** Renewal pricing remains in the **high single digits**, consistent with the first quarter.  **[CINF_3394815_9]**  Management sees continued opportunity for increased rates and focuses on segmentation and risk-by-risk pricing using predictive analytics.  **[CINF_3394815_9]** 

3. **Expense Ratio Outlook**

   **Q:** What is driving changes in the expense ratio?

   **A:** The expense ratio increased slightly to **30.1%** year-to-date due to higher profit-sharing commissions and employee-related expenses.  **[CINF_3394815_11]**  However, earned premium growth is outpacing expense increases, and management aims to reduce the ratio below **30%**.  **[CINF_3394815_11]** 

4. **Personal Lines Growth**

   **Q:** How are personal lines performing between middle market and high net worth?

   **A:** Both segments are growing healthily, with middle market currently outpacing high net worth.  **[CINF_3394815_13]**  Management views the personal lines market as "generational" and believes it is transformational for Cincinnati Insurance.  **[CINF_3394815_13]** 

5. **Workers' Compensation Strategy**

   **Q:** Will you grow in workers' compensation?

   **A:** While they have a strong appetite for workers' comp, management remains prudent, writing business only at the right rate on a risk-adjusted basis.  **[CINF_3394815_15]**  They note the current rate environment isn't attractive for aggressive growth due to the line's long-tail and volatility.  **[CINF_3394815_15]** 

6. **Personal Auto Margins**

   **Q:** Any concerns about personal auto adverse development?

   **A:** Adverse development is primarily in bodily injury claims from accident year **2023**, with some impact from **2022**.  **[CINF_3394815_14]**  Physical damage is performing well. Growth in the high net worth segment brings diversification benefits to personal auto results.  **[CINF_3394815_14]** 

7. **Competitive Position in Commercial Lines**

   **Q:** How is your competitive positioning in commercial lines?

   **A:** Management focuses on risk selection, pricing discipline, and deep agent relationships, resulting in over **30%** growth in new commercial lines business in the first half.  **[CINF_3394815_10]** **[CINF_3394815_11]**  They continue appointing new agencies and compete effectively with both national and regional carriers.  **[CINF_3394815_10]** 

8. **Cincinnati Re and Cincinnati Global**

   **Q:** What's the outlook for Cincinnati Re and Cincinnati Global?

   **A:** All lines in Cincinnati Global are growing except for direct impact property due to increased capital in that space.  **[CINF_3394815_23]**  Cincinnati Re operates with an allocated capital model and has maintained a spectacular combined ratio since inception, growing opportunistically without pressure to expand rapidly.  **[CINF_3394815_23]** 

9. **Commercial Auto Performance**

   **Q:** Has commercial auto improved after past challenges?

   **A:** Management feels positive about commercial auto, having acted quickly on reserving and underwriting in **2016 and 2017**.  **[CINF_3394815_18]**  They avoid volatile segments like trucking and have managed the book well, leading to favorable performance.  **[CINF_3394815_18]** 

10. **Market Competitiveness and Pricing**

    **Q:** Is the commercial lines market stable?

    **A:** Management describes the commercial marketplace as **responsible and orderly**, with continued rate increases across all major lines except workers' compensation.  **[CINF_3394815_17]**  They do not see a softening market and believe uncertainty supports ongoing rate strength.  **[CINF_3394815_17]** 

11. **Agent Appointments and Brand Value**

    **Q:** Will more agents dilute your brand value?

    **A:** Management believes appointing more qualified agents won't dilute franchise value.  **[CINF_3394815_22]**  They emphasize quality over quantity and see ample opportunity to expand their exclusive distribution without affecting the brand.  **[CINF_3394815_22]** 

12. **Maturity of Pre-2021 Accident Years**

    **Q:** How mature are the 2018–2020 accident years?

    **A:** The **$30 million** unfavorable development was mainly from accident years **2018–2020**, but management feels good about reserves for those years.  **[CINF_3394815_11]**  They are confident in their reserving process and the increased IBNR ratio.  **[CINF_3394815_11]** 

c92a7c6daeb51a0f8c53faaeb29ab126ef5bd33ae8dfe1b72ed9711f17afad63

- **Rising Loss Ratios in Commercial Casualty:** The company reported an increase in the current accident year loss ratio for commercial casualty, up almost **6 percentage points**, due to higher loss picks and added IBNR reserves, driven by higher case incurred losses and severity rather than frequency  **[CINF_3404022_5]** .
- **Macro Uncertainties Affecting Profitability:** Management acknowledged that macro factors like **litigation costs**, **social inflation**, **legal system abuse**, and **third-party litigation funding** are causing uncertainty and negatively impacting the commercial casualty line industry-wide  **[CINF_3404022_17]** .
- **Aggressive Growth Amidst Uncertainty:** Despite the rising loss ratios and increased uncertainty in the commercial casualty line, the company is choosing to **"play offense"** and continue aggressive growth in this area, which may heighten risk exposure  **[CINF_3404022_8]** .

9941b9b9bc1ff2d867993ca17ee3fffe958ef087fabbb7f5c606a1b9648044c4

- **Strong premium growth and market opportunities:** Cincinnati Financial is capitalizing on a "once in a lifetime, once in a generation" market opportunity, especially in personal lines, due to competitors being disrupted and macro factors. Their balance sheet strength allows them to take advantage of these opportunities, leading to significant growth across all lines of business.  **[CINF_3404022_12]** ,  **[CINF_3404022_8]**
- **Deep relationships with agents and attractive business model:** The company has deep relationships with agents and is considered a premier market. They continue to expand their expertise, teams, products, and agencies, which favorably impacts their excess and surplus lines company. Their business model of dealing directly with retail agents, having their own in-house brokerage, and handling claims with their own people is attractive and allows for continued expansion.  **[CINF_3404022_11]** ,  **[CINF_3404022_12]** ,  **[CINF_3404022_8]**
- **Confidence in pricing sophistication and ability to grow through all market cycles:** Cincinnati Financial has improved its pricing sophistication and segmentation over the past decade, utilizing predictive models developed by experienced teams. This gives them confidence to play offense in all segments and lines of business, believing they can grow through all market cycles.  **[CINF_3404022_8]** ,  **[CINF_3404022_17]**

a6fe528b65ef7fc85335ce0911f233eda4788320f224da4c7cddeb879c4246f6

1. **Commercial Casualty Reserve Strengthening**  
   **Q:** Why is the commercial casualty loss pick increasing?  
   **A:** We are adding to reserves due to **higher-than-expected loss payments and case reserve increases** in commercial casualty, driven by **severity rather than frequency**. This reflects **uncertainty around social inflation and legal system abuse**, prompting us to take a prudent approach and increase IBNR reserves.  **[CINF_3404022_6]** **[CINF_3404022_7]** **[CINF_3404022_17]** 

2. **Investment Portfolio Strategy**  
   **Q:** What's behind the large sell-down in the investment portfolio?  
   **A:** There is **no change in our investment philosophy** due to new leadership. The sell-down is part of **standard prudent portfolio management**, where we **trim or prune positions opportunistically**, especially in a strong equity market, and reallocate capital to take advantage of higher interest rates.  **[CINF_3404022_8]** 

3. **Personal Lines Growth Opportunity**  
   **Q:** How is the company approaching growth in personal lines?  
   **A:** We see a **once-in-a-generation market opportunity** in personal lines, expanding from a middle-market focus to now being **under 60% private client or high net worth**. Our strong balance sheet allows us to capitalize on disruptions in the market, and we do not believe in a new business penalty; instead, we aim to write every risk at the right rate.  **[CINF_3404022_11]** 

4. **Growth in Excess and Surplus Lines**  
   **Q:** What's driving growth in the E&S segment, and is it sustainable?  
   **A:** We are experiencing significant growth in our E&S segment, which is **90% casualty**, due to expanding our expertise, team, and products. We believe we're **just scratching the surface** of what's possible, leveraging our direct relationships with retail agents and our own in-house brokerage to capitalize on market opportunities.  **[CINF_3404022_9]** **[CINF_3404022_10]** 

5. **Agency Expansion Plans**  
   **Q:** What are your plans for growing the agency force in 2025?  
   **A:** While we aren't making public our specific goals, we are committed to **expanding our distribution** without diluting our franchise. We focus on partnering with the most professional agents aligned with our local business approach, and we expect to continue expanding at a rate similar to recent years.  **[CINF_3404022_14]** 

6. **Personal Auto Rate Adequacy**  
   **Q:** Do you need double-digit rate increases in personal auto for 2025 and beyond?  
   **A:** We continue to see **runway for rate increases across the entire personal lines book**. While we have already accelerated rates from high single digits to low double digits, we believe there's still **a lot of rate earning into the book**, and we aim to stay ahead of loss cost trends on a prospective basis.  **[CINF_3404022_15]** 

7. **Core Loss Ratio Increase in Other Lines**  
   **Q:** What caused the core loss ratio to increase in other commercial and personal lines?  
   **A:** The increase is due to **inherent variability or volatility** in those smaller lines, such as watercraft in personal lines. We have not identified any specific concerns by geography, agency, or line of business, and we continue to monitor these areas closely.  **[CINF_3404022_16]** 

8. **E&S Unfavorable Development**  
   **Q:** Can you explain the unfavorable development in E&S lines?  
   **A:** We observed **higher-than-expected case incurred losses** in our E&S casualty book, which is **90% casualty** and inherently volatile. Despite this, we have a **strong track record of profitability** in our E&S company and remain prudent in our reserving approach.  **[CINF_3404022_15]** 

697f99fb1b49435c52bf56eed5b7162442bcc7582f0818fe996ad768f4d0783d

1. **Commercial Lines Growth**
   **Q:** Why is Commercial Lines growth slowing despite pricing power?
   **A:** Growth is slowing due to underwriting discipline and deliberate actions in workers' compensation and umbrella lines, causing a **2 point drag** on Commercial Lines. We focus on underwriting profit over growth, achieving **11.5 years** of underwriting profit.  **[CINF_3362660_9]** **[CINF_3362660_10]** 

2. **Pricing vs. Loss Trends**
   **Q:** Is loss cost trend higher now than a year ago?
   **A:** We've seen rapid inflation since 2021, now moderating. We proactively set pricing to exceed loss cost trends and believe our pricing is ahead of loss trend.  **[CINF_3362660_10]** 

3. **Workers' Compensation Pressure**
   **Q:** What's causing pressure on workers' compensation loss ratios?
   **A:** The accident year loss ratio is under pressure due to downward rate pressure from rating bureaus, not due to unusual medical inflation.  **[CINF_3362660_11]** 

4. **Personal Lines Performance**
   **Q:** How are Personal Lines performing amid market challenges?
   **A:** Our Personal Lines are performing well, with substantial new business growth. We're confident in adequate prospective rates, with a mix of **55%** private client and **45%** middle market. Despite a very hard market, we see opportunities to grow our Personal Lines book.  **[CINF_3362660_8]** 

5. **Underwriting Discipline Impact**
   **Q:** How is underwriting discipline affecting new business in Commercial Lines?
   **A:** Underwriting discipline and pricing segmentation have pressured new business but are driving profitability. The competitive market varies by state, but our model and local decision-making serve us well.  **[CINF_3362660_7]** 

6. **Cincinnati Re Strategy**
   **Q:** Any changes in casualty reinsurance market affecting Cincinnati Re?
   **A:** We evaluate contracts individually, seeking appropriate returns. Currently, we see better opportunities in property and specialty lines, less so in casualty areas like professional liability. We're bullish on Cincinnati Re's contribution to profitability and diversification.  **[CINF_3362660_12]** 

7. **Private Client vs. Middle Market Profitability**
   **Q:** Is there a difference in profitability between private client and middle market?
   **A:** Industry-wide, private client outperforms middle market by a good margin. We expect both segments to be profitable, with private client outperforming over time.  **[CINF_3362660_13]** 

8. **Impact of Electric Vehicles**
   **Q:** Are electric vehicles affecting insurance pricing and costs?
   **A:** Electric vehicles bring different cost considerations, especially battery costs. While they are less complex mechanically, we account for these differences in our pricing.  **[CINF_3362660_14]** 

58635a9001d9d39a9b2413fa2fcfc61066f3ae4290a19737e2caca0c58f1c44a

- **Pressure on workers' compensation line due to downward pressure on rates and medical inflation**: The company acknowledges that their workers' compensation line is under pressure for the second quarter in a row, primarily due to **downward pressure on rates from rating bureaus** and concerns over **medical inflation** impacting incurred losses over time.  **[CINF_3362660_11]**
- **Lower growth rate in Commercial Lines compared to historical levels**: Despite similar pricing power to peers, the company's **overall growth rate is much lower than historical levels relative to the industry**, potentially due to increased risk selection and pricing discipline, which may constrain future revenue growth.  **[CINF_3362660_9]**
- **Reduction in casualty premiums in Cincinnati Re division due to lack of attractive opportunities**: The company is **reducing casualty premiums in its reinsurance division**, indicating fewer attractive opportunities and potential concerns over casualty loss cost trends in the market.  **[CINF_3362660_12]**

38292c0dc4058074c2a44a9420ab5080de2086831884b302828528ebe2a4cadf

- **Adverse development in personal auto bodily injury claims**, particularly in accident year 2023, indicating potential issues with loss severity or reserving in that line.  **[CINF_3394815_14]**
- **Unfavorable prior year reserve development in commercial casualty lines**, with the company adding reserves of **$51 million** for accident years 2021 and prior, suggesting prior underestimation of losses.  **[CINF_3394815_6]**
- **Uncertainty in excess and surplus lines due to changes in IBNR and case incurred losses**, which may indicate potential volatility in that segment.  **[CINF_3394815_20]** ,  **[CINF_3394815_19]**

33047af444dd45719dbc7b3973d2808e4f79278140349ce2fd351cda70a7b3ed

- **Strong underwriting discipline and pricing precision leading to sustained profitability.** The company has achieved **11 years and 9 months of consecutive underwriting profit**, emphasizing improvements in risk selection and their willingness to walk away from underpriced business.  **[CINF_3362660_9]**
- **Growth opportunities in Personal Lines due to market disruption and focus on high net worth clients.** With **55% of Personal Lines being private client (high net worth)**, the company sees significant opportunities in a disrupted Personal Lines market, positioning them well to **grow their Personal Lines book** by leveraging their **balance sheet strength, agency strategy, expertise, and pricing precision**.  **[CINF_3362660_8]**
- **Strategic agency appointments and expanding agent network supporting future growth.** The company appointed **193 new agents this year**, and aims to be the **#1 or #2 carrier** by premium volume in the majority of agencies within five years, indicating confidence in their long-term growth prospects.  **[CINF_3362660_5]**

daccd24763066bea310a65b6803a78d6a36d2d4aa64cf27bfed95c5efe506a8b

- **Persistently high inflation in insurance-related costs, particularly in commercial property, continues to impact claims, with inflation rates higher than the general CPI.**  **[CINF_3381285_20]**
- **Recognition of increased uncertainty in commercial casualty and workers' compensation is leading to higher loss picks and increased reserves, which may suggest potential for higher losses.**  **[CINF_3381285_6]** **[CINF_3381285_5]** **[CINF_3381285_17]**
- **Business mix shifts at Cincinnati Re and Cincinnati Global towards proportional reinsurance are structurally increasing the underlying loss ratios, potentially impacting profitability despite reduced volatility.**  **[CINF_3381285_9]** **[CINF_3381285_7]**

6b4d90cb88d0044d13e541dbd61c8592eb92a2aa1550bfdc1dd515c59dfd3e26

Cincinnati Financial Corp (CINF)

Financials