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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)

49f99b171d888dde28a260fd3a094854ea889ef5bfeb9494541a8f2991341095

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)

9242c951a9a2c74c367ad5d2a1045d51dd3c10363681cefc062d13377cb2e8a8

0f23698c2a7f306a6820d5eb3cbb2049838bb60b901a2fd61f6b0db019cc7223

The jump to **$912.00 million** in Q3 2024 was driven by multiple factors that enhanced overall operating performance. **Higher net income**—resulting from significant investment gains and improved operations—was a key contributor. Additionally, there was an **increase in loss and loss expense reserves** (reflecting higher reserves for incurred but not reported claims), a substantial **growth in unearned premiums** due to more written premiums, and a rise in **deferred policy acquisition costs** aligned with the premium expansion.  **[0000020286-24-000063_cinf-20240930.htm:4]** **[CINF_3404022_3]** **[0000020286-24-000062_exhibit9923q24.htm:4]** 

Why did operating cash flow jump to 912.00 in Q3 2024?

The flip to a positive **251.00** in Q3 2024 was primarily driven by significantly higher cash inflows from investing activities. In particular, there was a notable increase in inflows from the **sale, call, or maturity of fixed maturities** (rising to **2,354.00**) and the **sale of equity securities** (up to **1,332.00**). These substantial increases more than offset the cash outflows from the **purchase of fixed maturities** and **purchase of equity securities**, resulting in a net positive cash flow from investing activities.  **[0000020286-24-000063_cinf-20240930.htm:4]** 

What drove investing activities to flip to a positive 251.00 in Q3 2024?

The surge in sales of equity securities to **985.00 million USD** in Q3 2024 was primarily driven by **active portfolio rebalancing**. Specifically, the company trimmed or exited positions in selected common stocks, a move that allowed them to generate significant net sales as they focused on balancing near-term income generation with long-term book value growth potential.  **[0000020286-24-000063_cinf-20240930.htm:4]** **[CINF_3404022_3]** **[0000020286-24-000063_cinf-20240930.htm:59]** 

Why did sales of equity securities surge to 985.00 in Q3 2024?

The significant increase in cash to **$1,752 million** in Q3 2024 was primarily driven by **net sales of equity securities** that generated **$959 million** in proceeds, combined with an **investment strategy** where only part of the proceeds was reinvested in fixed-maturity securities, leaving more liquidity on the balance sheet. In addition, the company’s history of **positive operating cash flow** further supported the heightened cash levels.  **[0000020286-24-000063_cinf-20240930.htm:64]** 

What factors contributed to cash ending at 1,752 in Q3 2024?

The purchases of fixed-maturity securities in Q3 2024 became elevated primarily because the company reinvested the proceeds from **net equity sales** totaling **$959 million** during that quarter. This reinvestment boosted the fixed-maturity purchases by **$672 million** and was part of a strategic move to optimize the investment portfolio—balancing near-term income with long-term book value growth while targeting higher yields, as evidenced by a **5.53% average pretax yield** on purchased bonds.  **[20241024CL37609:8]** **[CINF_3404022_3]** **[0000020286-24-000063_cinf-20240930.htm:59]** 

Why did purchases of fixed maturities become so high in Q3 2024?

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Commercial Lines

- Personal Lines

- Excess & Surplus Lines

Life Insurance

Investments

Total Revenue

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The drop to **$619 million in Q1 2024** is due to several activities that collectively reduced cash. Specifically, Cincinnati Financial Corporation experienced a decline from **$907 million as of December 31, 2023, to $619 million as of March 31, 2024**. This change was driven by **share repurchases** (680,000 shares at an average price of **$109.89 per share**), **dividend payments** totaling **$116 million**, and **net purchases of $374 million in fixed maturity securities**, which more than offset the **41% increase in operating cash flow** (to **$353 million**) during the same period.  **[20240425CL96403:10]** **[0000020286-24-000029_exhibit9911q24.htm:11]** **[CINF_3381285_3]** 

Why did cash and cash equivalents drop to 619 in Q1 2024?

The surge in cash and cash equivalents to **1,752** in Q3 2024 was driven primarily by a significant **net sale of equity securities amounting to $959 million**, which generated liquidity used to purchase fixed maturities. Additionally, the company benefited from its consistently **positive operating cash flow** and a strategic investment approach that balances near-term income with long-term book value growth.  **[20241024CL37609:12]** **[0000020286-24-000063_cinf-20240930.htm:64]** 

What drove the surge in cash and cash equivalents to 1,752 in Q3 2024?

The jump in total assets to **$37,009 million** in Q3 2024 was driven by several factors. **Investments** increased significantly, notably through a **$1.462 billion** increase in the fair value of the bond portfolio (including **$672 million** in net purchases of fixed-maturity securities) and a **$7.536 billion** appreciated value in the equity portfolio before taxes, even though there was a slight decrease in its fair value during the quarter.  **[0000020286-24-000063_cinf-20240930.htm:1]**   Additionally, there was a notable boost in **Cash and Cash Equivalents** from **$907 million** to **$1,752 million**, an increase that supported overall asset growth.  **[0000020286-24-000048_cinf-20240630.htm:1]**   Finally, operational factors such as growth in **Premiums Receivable** (rising from **$2,592 million** to **$3,012 million**) and an increase in **Deferred Policy Acquisition Costs** (from **$1,093 million** to **$1,241 million**) also contributed to this substantial rise.  **[20241024CL37609:12]** 

What factors contributed to total assets jumping to 37,009 in Q3 2024?

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Earned Premiums (USD, millions)

Investment Income, Net of Expenses (USD, millions)

Investment Gains and Losses, Net (USD, millions)

Fee Revenues (USD, millions)

Other Revenues (USD, millions)

Total Revenues (USD, millions)

Insurance Losses and Contract Holders' Benefits (USD, millions)

Underwriting, Acquisition and Insurance Expenses (USD, millions)

Other Operating Expenses (USD, millions)

Total Benefits and Expenses (USD, millions)

Income (Loss) Before Income Taxes (USD, millions)

Current Provision (Benefit) for Income Taxes (USD, millions)

Deferred Provision (Benefit) for Income Taxes (USD, millions)

Total Provision (Benefit) for Income Taxes (USD, millions)

Net Income (Loss) (USD, millions)

25b97c4324f169e942a25f277de25b135174384125810661d49529916c11043c

Cincinnati Financial Corp (CINF)

Financials