Financial Data and Key Metrics Changes - Net income for Q1 2023 was $225 million, rebounding from a net loss in the same quarter last year [23] - Non-GAAP operating income decreased to $141 million, down $119 million from a year ago, primarily due to catastrophe losses being $163 million higher [52] - The property casualty combined ratio for Q1 2023 was 100.7%, which is 10.8 percentage points higher than the same period last year [52] - The consolidated property casualty result rose 6% for the first quarter, including a 10% increase in renewal written premiums [53] Business Line Data and Key Metrics Changes - Commercial lines net written premiums grew by 4%, but the combined ratio increased by 8.1 percentage points, with 9.0 points attributed to catastrophe losses [18] - Personal lines saw a 20% increase in net written premiums, largely due to the expansion of the Cincinnati Private Client business for high net worth clients [18] - Cincinnati Re's combined ratio was 79.6%, with net written premiums decreasing by 9% [26] - Cincinnati Global's combined ratio was 87.5%, with net written premiums growing by 25% [27] Market Data and Key Metrics Changes - Average renewal pricing for commercial lines was near the high end of the mid-single digit percent range, while personal lines experienced average renewal price increases in the mid-single digit range [25] - The company expects premium rates for personal auto lines to rise approximately 10% for the full year 2023 [8] Company Strategy and Development Direction - The company is focusing on maintaining pricing and underwriting discipline while addressing inflationary pressures [5][39] - There is a strategic emphasis on retaining profitable accounts and seeking profitable new business, particularly in the high net worth segment [17][39] - The company is reallocating capacity and tightening terms and conditions in response to market conditions [19][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in performance for the remainder of the year despite increased catastrophe losses and inflation [24] - The company is taking corrective actions in response to increased loss experience in certain lines, particularly in the umbrella segment [44] - Management noted that the first quarter's catastrophe losses were under $100 million, which was below the retention threshold [72] Other Important Information - Cash flow from operating activities for Q1 2023 was $250 million, up 26% from the previous year [9] - The company repurchased nearly 202,000 shares at an average price of $123.84 during the first quarter [60] - The total investment portfolio net appreciated value was approximately $5 billion at the end of the quarter [30] Q&A Session Summary Question: What is the outlook for new business in personal lines? - Management indicated that growth in personal lines is driven by the high net worth segment, which now constitutes about 50% of the business [139] Question: How is the company addressing the increased competition in commercial lines? - Management acknowledged that competition varies by geography and emphasized the importance of local underwriting and pricing discipline [38] Question: What are the expectations regarding catastrophe losses moving forward? - Management stated that while catastrophe losses are inherently volatile, they are focused on maintaining a combined ratio under 100 and taking actions to mitigate losses [72] Question: Can you elaborate on the increase in IBNR reserves? - Management explained that the increase in IBNR was primarily due to commercial casualty, with a total of $209 million added in the first quarter [74] Question: How does the company view the recent reforms in Florida? - Management views the changes in Florida as positive but noted it is too early to draw definitive conclusions [118]

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------|-------|----------------|-------|---------|-------------------|-------|--------------------|-------|------------------|-------|-------| | The table below shows the life deferred policy acquisition \n(Dollars in millions) \nThree months ended March 31, 2023 | costs | asset \nTerm | by | ...

Insurance Segments Performance - The personal lines insurance segment contributed net earned premiums of $1.689 billion in 2022, accounting for 25.8% of total revenues, with a profit before income taxes of $18 million[140]. - Personal lines net earned premiums increased by 10% in 2022 and 5% in 2021[140]. - The commercial lines insurance segment generated net earned premiums of $4,024 million, accounting for 61.4% of total revenues, with a 10% increase from the previous year[165]. - The personal lines insurance segment reported net written premiums of $1,831 million, representing a 14.9% increase from $1,594 million in 2021[162]. - The excess and surplus lines segment contributed net earned premiums of $485 million, which is 7.4% of total revenues, with a 22% increase in both 2022 and 2021[175]. - Life insurance segment revenues were primarily driven by term life insurance, which accounted for $226 million in premiums, a 3.7% increase from the previous year[180]. - Net written premiums for Cincinnati Re increased to $585 million in 2022, up from $461 million in 2021, with approximately 31% attributed to property exposures and 53% to casualty exposures[194]. - Net written premiums for Cincinnati Global totaled $230 million in 2022, up from $187 million in 2021, with 61% classified as direct and facultative[255]. Market Presence and Strategy - The company aims to attract high-quality independent insurance agencies, providing training and support to enhance agency-client relationships[157]. - Approximately 85% of agencies offer some or all of the standard market commercial insurance products, indicating a strong market presence[166]. - The company operates in 42 states for excess and surplus lines, enhancing its market reach and service capabilities[176]. - At year-end 2022, personal lines insurance products were marketed through 2,076 agency locations, covering 73% of total agency locations[172]. - The 10 highest volume personal lines states accounted for 64.5% of earned premiums in 2022, down from 64.8% in 2021, indicating progress towards geographic diversification[201]. - The 10 highest volume commercial lines states generated 56.2% of earned premiums in 2022, a slight decrease from 56.7% in 2021[195]. Financial Performance and Ratios - The company reported a debt-to-total-capital ratio of 7.4% at year-end 2022, with long-term debt totaling $789 million[147]. - The company maintains a risk-based capital to authorized control level risk-based capital ratio of 5.5 at year-end 2022[148]. - The total net written premiums reached $7,646 million in 2022, a 12% increase from $6,825 million in 2021[162]. - The company reported a net loss of $486 million in 2022, a decrease of $3.432 billion compared to net income in 2021, which included a $3.062 billion reduction in net investment gains after tax[59]. - The fair value of the investment portfolio decreased to $21.973 billion at year-end 2022 from $24.337 billion in 2021, primarily due to a decline in equity markets and an increase in interest rates[214]. Investment Strategy and Portfolio - The investment department adheres to risk guidelines set by the investment policy, ensuring a structured approach to asset allocation[186]. - The company’s investment strategy focuses on a buy-and-hold approach to manage interest rate and credit risks[216]. - At year-end 2022, the net unrealized investment gains in the equity portfolio amounted to $5.547 billion[220]. - The weighted average yield-to-amortized cost of the fixed-maturity portfolio was 4.22% at December 31, 2022, up from 4.02% in 2021[217]. - The taxable fixed-maturity portfolio included $234 million of commercial mortgage-backed securities with an average rating of Aa2/AA- at year-end 2022[218]. - At December 31, 2022, the investment-grade fixed-maturity securities represented 80.1% of the portfolio, while noninvestment-grade fixed-maturity securities accounted for 4.2%[249]. - The company has $3.833 billion of tax-exempt fixed-maturity securities with an average rating of Aa2/AA, well-diversified among approximately 1,700 municipal bond issuers[251]. Risk Management and Challenges - The company’s risk management framework includes an enterprise risk management committee overseeing risk activities[230]. - Increased competition in the insurance market could lead to fewer submissions, lower premium rates, and less favorable policy terms, adversely affecting underwriting margins[247]. - The company is exposed to risks from global climate change, which may lead to higher overall losses and increased reinsurance costs[244]. - The company continues to study emerging risks, including climate change risk, and its potential financial effects on operations and insured entities[263]. Claims and Legal Matters - The company emphasizes a claims philosophy focused on prompt payment and preventing false claims, enhancing financial strength for future obligations[155]. - Legal expenses for business interruption claims are influenced by various factors, including attorney fees and litigation trends[64]. - The company noted that future losses may be reduced due to factors such as decreased miles driven and reduced sales and payrolls for businesses[66]. - Incurred losses and expenses related to the pandemic for full-year 2020 totaled $85 million, including $30 million for legal expenses, $19 million for Cincinnati Re losses, and $12 million for Cincinnati Global losses[64]. - Cincinnati Re's estimated share of pandemic-related business interruption losses is approximately half of its total losses, with the remainder primarily from professional liability treaties[65].

Cincinnati Financial Corporation (NASDAQ:CINF) Q4 2022 Earnings Conference Call February 7, 2023 11:00 AM ET Company Participants Dennis McDaniel - IR Steve Johnston - Chairman & CEO Michael Sewell - EVP & CFO Steve Spray - President Steve Soloria - SVP, Investments Conference Call Participants Paul Newsome - Piper Sandler Mike Zaremski - BMO Mark Dwelle - RBC Capital Markets Grace Carter - Bank of America Meyer Shields - KBW Operator Good day, and welcome to the Cincinnati Financial Corporation Fourth Quar ...

Cincinnati Financial Corporation (NASDAQ:CINF) Q3 2022 Earnings Conference Call November 1, 2022 11:00 AM ET Company Participants Dennis McDaniel - IRO Steve Johnston - Chairman & CEO Mike Sewell - EVP & CFO Steve Spray - President Steve Soloria - SVP, Investments Marc Schambow - Chief Claims Officer, The Cincinnati Insurance Company Theresa Hoffer - SVP, Corporate Finance Conference Call Participants Paul Newsome - Piper Sandler Mike Zaremski - BMO Sid Parameswar - Raymond James Scott Heleniak - RBC Capita ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended September 30, 2022. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from _____________________ to _____________________. Commission file number 0-4604 CINCINNATI FINANCIAL CORPORATION (Exact name of registrant as specified in i ...

INVESTOR HANDOUT SEPTEMBER 2022 | --- | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 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 ...

Cincinnati Financial Corporation (NASDAQ:CINF) Q2 2022 Results Conference Call July 28, 2022 11:00 AM ET Company Participants Dennis McDaniel - IRO Steven Johnston - Chairman, CEO Mike Sewell - EVP, CFO Steve Spray - President Martin Hollenbeck - EVP, CIO Conference Call Participants Derek Han - KBW Mark Dwelle - RBC Paul Newsome - Piper Sandler Operator Hello, and welcome to the Cincinnati Financial Second Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note, this event is being re ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2022. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from _____________________ to _____________________. Commission file number 0-4604 CINCINNATI FINANCIAL CORPORATION (Exact name of registrant as specified in its ch ...

Cincinnati Financial Corp. (NASDAQ:CINF) Q1 2022 Earnings Conference Call April 29, 2022 11:00 AM ET Company Participants Dennis McDaniel - VP & IR Officer Steven Johnston - Chairman, President & CEO Michael Sewell - CFO, Principal Accounting Officer, Executive VP & Treasurer Stephen Spray - SVP, Chief Insurance Officer & Director Conference Call Participants Meyer Shields - KBW Mark Dwelle - RBC Capital Markets John Heagney - Dowling & Partners Securities Operator Thank you all for standing by, and welcome ...