CINCINNATI FINANCIAL CORP 10-Q

Item 1. Financial Statements (unaudited) Cincinnati Financial Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Dollars in millions, except per share data) March 31, December 31, 2024 2023 Assets Investments Fixed maturities, at fair value (amortized cost: 2024—$ 14,709 ; 2023—$ 14,361 ) $ 14,084 $ 13,791 Equity securities, at fair value (cost: 2024—$ 4,313 ; 2023—$ 4,282 ) 11,557 10,989 Other invested assets 608 577 Total investments 26,249 25,357 Cash and cash equivalents 619 907 Investment income receivable 202 192 Finance receivable 106 108 Premiums receivable 2,805 2,592 Reinsurance recoverable 617 651 Prepaid reinsurance premiums 77 55 Deferred policy acquisition costs 1,143 1,093 Land, building and equipment, net, for company use (accumulated depreciation: 2024—$ 331 ; 2023—$ 337 ) 211 208 Other assets 771 681 Separate accounts 927 925 Total assets $ 33,727 $ 32,769 Liabilities Insurance reserves Loss and loss expense reserves $ 9,246 $ 9,050 Life policy and investment contract reserves 3,013 3,068 Unearned premiums 4,398 4,119 Other liabilities 1,156 1,311 Deferred income tax 1,460 1,324 Note payable 25 25 Long-term debt and lease obligations 848 849 Separate accounts 927 925 Total liabilities 21,073 20,671 Commitments and contingent liabilities (Note 12) Shareholders' Equity Common stock, par value—$ 2 per share; (authorized: 2024 and 2023— 500 million shares; issued: 2024 and 2023— 198.3 million shares) 397 397 Paid-in capital 1,446 1,437 Retained earnings 13,712 13,084 Accumulated other comprehensive loss ( 442 ) ( 435 ) Treasury stock at cost (2024— 41.8 million shares and 2023— 41.3 million shares) ( 2,459 ) ( 2,385 ) Total shareholders' equity 12,654 12,098 Total liabilities and shareholders' equity $ 33,727 $ 32,769 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 3 Table of Contents Cincinnati Financial Corporation and Subsidiaries Condensed Consolidated Statements of Income (Dollars in millions, except per share data) Three months ended March 31, 2024 2023 Revenues Earned premiums $ 2,071 $ 1,918 Investment income, net of expenses 245 210 Investment gains and losses, net 612 106 Fee revenues 4 4 Other revenues 3 3 Total revenues 2,935 2,241 Benefits and Expenses Insurance losses and contract holders' benefits 1,349 1,398 Underwriting, acquisition and insurance expenses 616 556 Interest expense 13 14 Other operating expenses 4 5 Total benefits and expenses 1,982 1,973 Income Before Income Taxes 953 268 Provision for Income Taxes Current 61 16 Deferred 137 27 Total provision for income taxes 198 43 Net Income $ 755 $ 225 Per Common Share Net income — basic $ 4.82 $ 1.43 Net income — diluted 4.78 1.42 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 4 Table of Contents Cincinnati Financial Corporation and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (Dollars in millions) Three months ended March 31, 2024 2023 Net Income $ 755 $ 225 Other Comprehensive Income (Loss) Change in unrealized gains and losses on investments, net of tax (benefit) of $( 11 ) and $ 35 , respectively ( 44 ) 128 Amortization of pension actuarial loss and prior service cost, net of tax (benefit) of $ 0 and $( 1 ), respectively — ( 5 ) Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $ 10 and $( 9 ), respectively 37 ( 36 ) Other comprehensive income (loss) ( 7 ) 87 Comprehensive Income $ 748 $ 312 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 5 Table of Contents Cincinnati Financial Corporation and Subsidiaries Condensed Consolidated Statements of Shareholders' Equity (Dollars in millions) Three months ended March 31, 2024 2023 Common Stock Beginning of period $ 397 $ 397 Share-based awards — — End of period 397 397 Paid-In Capital Beginning of period 1,437 1,392 Share-based awards ( 6 ) ( 6 ) Share-based compensation 14 12 Other 1 — End of period 1,446 1,398 Retained Earnings Beginning of period 13,084 11,711 Net income 755 225 Dividends declared ( 127 ) ( 118 ) End of period 13,712 11,818 Accumulated Other Comprehensive Loss Beginning of period ( 435 ) ( 614 ) Other comprehensive income (loss) ( 7 ) 87 End of period ( 442 ) ( 527 ) Treasury Stock Beginning of period ( 2,385 ) ( 2,324 ) Share-based awards 8 7 Shares acquired - share repurchase authorization ( 75 ) ( 25 ) Shares acquired - share-based compensation plans ( 7 ) ( 3 ) End of period ( 2,459 ) ( 2,345 ) Total Shareholders' Equity $ 12,654 $ 10,741 (In millions, except per common share) Common Stock - Shares Outstanding Beginning of period 157.0 157.1 Share-based awards 0.3 0.3 Shares acquired - share repurchase authorization ( 0.7 ) ( 0.2 ) Shares acquired - share-based compensation plans ( 0.1 ) — End of period 156.5 157.2 Dividends declared per common share $ 0.81 $ 0.75 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 6 Table of Contents Cincinnati Financial Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (Dollars in millions) Three months ended March 31, 2024 2023 Cash Flows From Operating Activities Net income $ 755 $ 225 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other 34 40 Investment gains and losses, net ( 608 ) ( 93 ) Interest credited to contract holders 11 10 Deferred income tax expense 137 27 Changes in: Premiums and reinsurance receivable ( 203 ) ( 229 ) Deferred policy acquisition costs ( 50 ) ( 36 ) Other assets ( 8 ) ( 24 ) Loss and loss expense reserves 196 293 Life policy and investment contract reserves 26 25 Unearned premiums 279 201 Other liabilities ( 161 ) ( 121 ) Current income tax receivable/payable ( 55 ) ( 68 ) Net cash provided by operating activities 353 250 Cash Flows From Investing Activities Sale, call or maturity of fixed maturities 464 303 Sale of equity securities 266 4 Purchase of fixed maturities ( 838 ) ( 606 ) Purchase of equity securities ( 226 ) ( 22 ) Changes in finance receivables 2 ( 3 ) Investment in building and equipment ( 7 ) ( 4 ) Change in other invested assets, net ( 16 ) ( 34 ) Net cash used in investing activities ( 355 ) ( 362 ) Cash Flows From Financing Activities Payment of cash dividends to shareholders ( 116 ) ( 106 ) Shares acquired - share repurchase authorization ( 75 ) ( 25 ) Proceeds from stock options exercised 3 5 Contract holders' funds deposited 19 20 Contract holders' funds withdrawn ( 60 ) ( 58 ) Other ( 57 ) ( 33 ) Net cash used in financing activities ( 286 ) ( 197 ) Net change in cash and cash equivalents ( 288 ) ( 309 ) Cash and cash equivalents at beginning of year 907 1,264 Cash and cash equivalents at end of period $ 619 $ 955 Supplemental Disclosures of Cash Flow Information: Interest paid $ — $ 1 Income taxes paid 106 76 Noncash Activities Equipment acquired under finance lease obligations $ 4 $ 1 Share-based compensation 17 11 Other assets and other liabilities 97 96 Accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 7 Table of Contents NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1 — Accounting Policies The condensed consolidated financial statements include the accounts of Cincinnati Financial Corporation and its consolidated subsidiaries, each of which is wholly owned. These statements are presented in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Our actual results could differ from those estimates. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been condensed or omitted. Our March 31, 2024, condensed consolidated financial statements are unaudited. We believe that we have made all adjustments, consisting only of normal recurring accruals, that are necessary for fair presentation. These condensed consolidated financial statements should be read in conjunction with our consolidated financial statements included in our 2023 Annual Report on Form 10-K. The results of operations for interim periods do not necessarily indicate results to be expected for the full year. Pending Accounting Updates ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 enhances reportable segment disclosures by requiring entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within the reported measure of profit or loss. This ASU also requires disclosure of the title and position of the CODM as well as a description of how the reported measure of profit or loss is used to assess segment performance and allocate resources. The effective date of ASU 2023-07 is for annual reporting periods beginning after December 15, 2023, and interim reporting periods within annual periods beginning after December 15, 2024, and should be applied retrospectively to all prior periods presented. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual and interim financial statements. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures by requiring entities to disclose specific categories within their rate reconciliation as well as additional items within those categories above a prescribed threshold. This ASU also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes as well as additional items within those categories above a prescribed threshold. The effective date of ASU 2023-09 is for annual reporting periods beginning after December 15, 2024, and should be applied prospectively with retrospective application permitted. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual financial statements . Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 8 Table of Contents NOTE 2 – Investments The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity securities: (Dollars in millions) Amortized cost Gross unrealized Fair value At March 31, 2024 gains losses Fixed-maturity securities: Corporate $ 8,002 $ 60 $ 463 $ 7,599 States, municipalities and political subdivisions 4,872 28 232 4,668 Government-sponsored enterprises 1,424 1 4 1,421 Asset-backed 200 — 11 189 United States government 182 — 4 178 Foreign government 29 — — 29 Total $ 14,709 $ 89 $ 714 $ 14,084 At December 31, 2023 Fixed-maturity securities: Corporate $ 7,836 $ 70 $ 454 $ 7,452 States, municipalities and political subdivisions 4,867 44 208 4,703 Government-sponsored enterprises 1,227 3 6 1,224 Asset-backed 203 — 16 187 United States government 203 — 3 200 Foreign government 25 — — 25 Total $ 14,361 $ 117 $ 687 $ 13,791 The increase in net unrealized investment losses in our fixed-maturity portfolio at March 31, 2024, is primarily due to an increase in U.S. Treasury yields that were partially offset by a tightening of corporate credit spreads. Our asset-backed securities had an average rating of Aa3/AA- at both March 31, 2024, and December 31, 2023. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 9 Table of Contents The table below provides fair values and gross unrealized losses by investment category and by the duration of the securities' continuous unrealized loss positions: (Dollars in millions) Less than 12 months 12 months or more Total At March 31, 2024 Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Fixed-maturity securities: Corporate $ 642 $ 13 $ 5,488 $ 450 $ 6,130 $ 463 States, municipalities and political subdivisions 1,099 9 1,900 223 2,999 232 Government-sponsored enterprises 396 1 168 3 564 4 Asset-backed 30 — 133 11 163 11 United States government 74 — 105 4 179 4 Foreign government 17 — 5 — 22 — Total $ 2,258 $ 23 $ 7,799 $ 691 $ 10,057 $ 714 At December 31, 2023 Fixed-maturity securities: Corporate $ 379 $ 13 $ 5,560 $ 441 $ 5,939 $ 454 States, municipalities and political subdivisions 313 2 1,932 206 2,245 208 Government-sponsored enterprises 652 3 113 3 765 6 Asset-backed 5 — 172 16 177 16 United States government 32 — 129 3 161 3 Foreign government 3 — 6 — 9 — Total $ 1,384 $ 18 $ 7,912 $ 669 $ 9,296 $ 687 Contractual maturity dates for fixed-maturities securities were: (Dollars in millions) Amortized cost Fair value % of fair value At March 31, 2024 Maturity dates: Due in one year or less $ 971 $ 963 6.8 % Due after one year through five years 4,413 4,300 30.5 Due after five years through ten years 3,553 3,427 24.3 Due after ten years 5,772 5,394 38.4 Total $ 14,709 $ 14,084 100.0 % Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 10 Table of Contents The following table provides investment income and investment gains and losses, net: (Dollars in millions) Three months ended March 31, 2024 2023 Investment income: Interest $ 169 $ 140 Dividends 72 66 Other 7 7 Total 248 213 Less investment expenses 3 3 Total $ 245 $ 210 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ ( 11 ) $ ( 1 ) Unrealized gains and losses on securities still held, net 613 106 Subtotal 602 105 Fixed-maturity securities: Gross realized gains — 1 Gross realized losses ( 1 ) ( 1 ) Change in allowance for credit losses, net ( 9 ) — Subtotal ( 10 ) — Other 20 1 Total $ 612 $ 106 The fair value of our equity portfolio was $ 11.557 billion and $ 10.989 billion at March 31, 2024, and December 31, 2023, respectively. Microsoft Corporation (Nasdaq:MSFT), an equity holding, was our largest single investment holding with a fair value of $ 942 million and $ 842 million, which was 8.4 % and 7.9 % of our publicly traded common equities portfolio and 3.7 % and 3.4 % of the total investment portfolio at March 31, 2024, and December 31, 2023, respectively. The allowance for credit losses on fixed-maturity securities was $ 27 million and $ 18 million at March 31, 2024, and December 31, 2023, respectively. There were 3,329 and 2,840 fixed-maturity securities in a total unrealized loss position of $ 714 million and $ 687 million at March 31, 2024, and December 31, 2023, respectively. Of those totals, 12 and 20 fixed-maturity securities had fair values below 70 % of amortized cost at March 31, 2024, and December 31, 2023, respectively. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 11 Table of Contents NOTE 3 – Fair Value Measurements In accordance with accounting guidance for fair value measurements and disclosures, we categorized our financial instruments, based on the priority of the observable and market-based data for the valuation technique used, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest observable input that has a significant impact on fair value measurement is used. Our valuation techniques have not changed from those used at December 31, 2023, and ultimately management determines fair value. See our 2023 Annual Report on Form 10-K, Item 8, Note 3, Fair Value Measurements, Page 139, for information on characteristics and valuation techniques used in determining fair value. Fair Value Disclosures for Assets The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at March 31, 2024, and December 31, 2023. We do not have any liabilities carried at fair value. (Dollars in millions) Level 1 Level 2 Level 3 Total At March 31, 2024 Fixed maturities, available for sale: Corporate $ — $ 7,599 $ — $ 7,599 States, municipalities and political subdivisions — 4,668 — 4,668 Government-sponsored enterprises — 1,421 — 1,421 Asset-backed — 189 — 189 United States government 178 — — 178 Foreign government — 29 — 29 Subtotal 178 13,906 — 14,084 Common equities 11,203 — — 11,203 Nonredeemable preferred equities — 354 — 354 Separate accounts taxable fixed maturities — 866 — 866 Top Hat savings plan mutual funds and common equity (included in Other assets) 78 — — 78 Total $ 11,459 $ 15,126 $ — $ 26,585 At December 31, 2023 Fixed maturities, available for sale: Corporate $ — $ 7,452 $ — $ 7,452 States, municipalities and political subdivisions — 4,703 — 4,703 Government-sponsored enterprises — 1,224 — 1,224 Asset-backed — 187 — 187 United States government 200 — — 200 Foreign government — 25 — 25 Subtotal 200 13,591 — 13,791 Common equities 10,641 — — 10,641 Nonredeemable preferred equities — 348 — 348 Separate accounts taxable fixed maturities — 854 — 854 Top Hat savings plan mutual funds and common equity (included in Other assets) 67 — — 67 Total $ 10,908 $ 14,793 $ — $ 25,701 We also held Level 1 cash and cash equivalents of $ 619 million and $ 907 million at March 31, 2024, and December 31, 2023, respectively. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 12 Table of Contents Fair Value Disclosures for Assets and Liabilities Not Carried at Fair Value The disclosures below are presented to provide information about the effects of current market conditions on financial instruments that are not reported at fair value in our condensed consolidated financial statements. This table summarizes the book value and principal amounts of our long-term debt: (Dollars in millions) Book value Principal amount Interest rate Year of issue March 31, December 31, March 31, December 31, 2024 2023 2024 2023 6.900 % 1998 Senior debentures, due 2028 $ 27 $ 27 $ 28 $ 28 6.920 % 2005 Senior debentures, due 2028 391 391 391 391 6.125 % 2004 Senior notes, due 2034 372 372 374 374 Total $ 790 $ 790 $ 793 $ 793 The following table shows fair values of our note payable and long-term debt: (Dollars in millions) Level 1 Level 2 Level 3 Total At March 31, 2024 Note payable $ — $ 25 $ — $ 25 6.900 % senior debentures, due 2028 — 29 — 29 6.920 % senior debentures, due 2028 — 416 — 416 6.125 % senior notes, due 2034 — 399 — 399 Total $ — $ 869 $ — $ 869 At December 31, 2023 Note payable $ — $ 25 $ — $ 25 6.900 % senior debentures, due 2028 — 29 — 29 6.920 % senior debentures, due 2028 — 420 — 420 6.125 % senior notes, due 2034 — 394 — 394 Total $ — $ 868 $ — $ 868 The following table shows the fair value of our life policy loans included in other invested assets and the fair values of our deferred annuities and structured settlements included in life policy and investment contract reserves: (Dollars in millions) Level 1 Level 2 Level 3 Total At March 31, 2024 Life policy loans $ — $ — $ 40 $ 40 Deferred annuities — — 577 577 Structured settlements — 137 — 137 Total $ — $ 137 $ 577 $ 714 At December 31, 2023 Life policy loans $ — $ — $ 39 $ 39 Deferred annuities — — 603 603 Structured settlements — 141 — 141 Total $ — $ 141 $ 603 $ 744 Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 13 Table of Contents Outstanding principal and interest for these life policy loans totaled $ 34 million and $ 33 million at March 31, 2024, and December 31, 2023, respectively. Recorded reserves for the deferred annuities were $ 631 million and $ 656 million at March 31, 2024, and December 31, 2023, respectively. Recorded reserves for the structured settlements were $ 122 million and $ 123 million at March 31, 2024, and December 31, 2023, respectively. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 14 Table of Contents NOTE 4 – Property Casualty Loss and Loss Expenses This table summarizes activity for our consolidated property casualty loss and loss expense reserves: (Dollars in millions) Three months ended March 31, 2024 2023 Gross loss and loss expense reserves, beginning of period $ 8,975 $ 8,336 Less reinsurance recoverable 362 405 Net loss and loss expense reserves, beginning of period 8,613 7,931 Net incurred loss and loss expenses related to: Current accident year 1,370 1,376 Prior accident years ( 100 ) ( 59 ) Total incurred 1,270 1,317 Net paid loss and loss expenses related to: Current accident year 205 187 Prior accident years 832 859 Total paid 1,037 1,046 Net loss and loss expense reserves, end of period 8,846 8,202 Plus reinsurance recoverable 332 424 Gross loss and loss expense reserves, end of period $ 9,178 $ 8,626 We use actuarial methods, models and judgment to estimate, as of a financial statement date, the property casualty loss and loss expense reserves required to pay for and settle all outstanding insured claims, including incurred but not reported (IBNR) claims, as of that date. The actuarial estimate is subject to review and adjustment by an inter-departmental committee that includes actuarial, claims, underwriting, loss prevention and accounting management. This committee is familiar with relevant company and industry business, claims and underwriting trends, as well as general economic and legal trends that could affect future loss and loss expense payments. The amount we will actually have to pay for claims can be highly uncertain. This uncertainty, together with the size of our reserves, makes the loss and loss expense reserves our most significant estimate. The reserve for loss and loss expenses in the condensed consolidated balance sheets also included $ 68 million and $ 67 million at March 31, 2024, and 2023, respectively, for certain life and health loss and loss expense reserves. We experienced $ 100 million of favorable development on prior accident years, including $ 38 million of favorable development in commercial lines, $ 33 million of favorable development in personal lines and $ 3 million of favorable development in excess and surplus lines for the three months ended March 31, 2024. Within commercial lines, we recognized favorable reserve development of $ 22 million for the commercial property line and $ 12 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. Within personal lines, we recognized favorable reserve development of $ 25 million for the homeowner line and $ 5 million for the personal auto line. We experienced $ 59 million of favorable development on prior accident years, including $ 32 million of favorable development in commercial lines, $ 31 million of favorable development in personal lines and $ 9 million of favorable development in excess and surplus lines for the three months ended March 31, 2023. Within commercial lines, we recognized favorable reserve development of $ 16 million for the commercial property line and $ 15 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. Within personal lines, we recognized favorable reserve development of $ 27 million for the homeowner line. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 15 Table of Contents NOTE 5 – Life Policy and Investment Contract Reserves We establish the reserves for traditional life policies including term, whole life and other products based on the present value of future benefits and claim expenses less the present value of future net premiums. Net premium is the portion of gross premium required to pro vide for all benefits and claim expenses. We estimate future benefits and claim expenses and net premium using certain cash flow assumptions including mortality, morbidity and lapse rates as well as a discount rate assumption. The cash flow assumptions are established based on our current expectations and are reviewed annually to determine any necessary updates. These assumptions are also updated on an interim basis if evidence suggests that they should be revised. We use both our own experience and industry experience, adjusted for historical trends, in arriving at our cash flow assumptions. The discount rate assumption is based on upper-medium grade fixed-income instrument yields (market value discount rates) and is updated quarterly. Changes in the inputs, judgments and assumptions during the period and the related measurement impact on the liability are reflected in the below tables. We establish reserves for our universal life, deferred annuity and other investment contracts equal to the cumulative account balances, which include premium deposits plus credited interest less charges and withdrawals. Some of our universal life policies contain no-lapse guarantee provisions. For these policies, we establish a reserve in addition to the account balance, based on expected no-lapse guarantee benefits and expected policy assessments. The following table summarizes our life policy and investment contract reserves and provides a reconciliation of the balances described in the below tables to those in the condensed consolidated balance sheets: (Dollars in millions) March 31, 2024 December 31, 2023 Life policy reserves: Term $ 1,054 $ 1,066 Whole life 418 434 Other 99 97 Subtotal 1,571 1,597 Investment contract reserves: Deferred annuities 631 656 Universal life 585 585 Structured settlements 122 123 Other 104 107 Subtotal 1,442 1,471 Total life policy and investment contract reserves $ 3,013 $ 3,068 Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 16 Table of Contents The balances and changes in the term and whole life policy reserves included in life policy and investment contract reserves is as follows: (Dollars in millions) Three months ended March 31, 2024 2023 Term Whole life Term Whole life Present value of expected net premiums: Balance, beginning of period $ 1,700 $ 223 $ 1,643 $ 208 Beginning balance at original discount rate 1,712 225 1,708 217 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience ( 9 ) — ( 3 ) 1 Adjusted beginning of period balance 1,703 225 1,705 218 Issuances 35 5 38 7 Interest accrual 18 2 18 2 Net premiums collected ( 46 ) ( 7 ) ( 46 ) ( 7 ) Ending balance at original discount rate 1,710 225 1,715 220 Effect of changes in discount rate assumptions ( 50 ) ( 6 ) ( 16 ) ( 3 ) Balance, end of period 1,660 219 1,699 217 Present value of expected future policy benefits: Balance, beginning of period 2,751 657 2,584 614 Beginning balance at original discount rate 2,765 628 2,692 607 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience ( 14 ) — ( 2 ) 1 Adjusted beginning of period balance 2,751 628 2,690 608 Issuances 35 5 38 6 Interest accrual 31 8 30 8 Benefits paid ( 37 ) ( 8 ) ( 46 ) ( 8 ) Ending balance at original discount rate 2,780 633 2,712 614 Effect of changes in discount rate assumptions ( 82 ) 4 ( 21 ) 30 Balance, end of period 2,698 637 2,691 644 Net liability for future policy benefits: Present value of expected future policy benefits less expected net premiums 1,038 418 992 427 Impact of flooring at cohort level 16 — 19 — Net life policy reserves 1,054 418 1,011 427 Less reinsurance recoverable at original discount rate ( 100 ) ( 24 ) ( 96 ) ( 25 ) Less effect of discount rate assumption changes on reinsurance recoverable ( 8 ) ( 4 ) ( 10 ) ( 6 ) Net life policy reserves, after reinsurance recoverable $ 946 $ 390 $ 905 $ 396 Weighted-average duration of the net life policy reserves in years 11 16 12 16 The total impact of flooring at cohort level in the above tables includes the effect of discount rate assumption change s of $ 2 million and $ 5 million at March 31, 2024 and 2023, respectively. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 17 Table of Contents The following table shows the amount of undiscounted and discounted expected future benefit payments and expected gross premiums for our term and whole life policies: (Dollars in millions) At March 31, 2024 2023 Undiscounted Discounted Undiscounted Discounted Term Expected future benefit payments $ 4,816 $ 2,698 $ 4,696 $ 2,691 Expected future gross premiums 4,386 2,601 4,470 2,674 Whole life Expected future benefit payments $ 1,660 $ 637 $ 1,586 $ 644 Expected future gross premiums 663 402 618 384 The following table shows the amount of revenue and interest recognized in the condensed consolidated statements of income related to our term and whole life policies: (Dollars in millions) Three months ended March 31, 2024 2023 Gross premiums Term $ 74 $ 73 Whole life 13 12 Total $ 87 $ 85 Interest accretion Term $ 13 $ 12 Whole life 6 6 Total $ 19 $ 18 Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums w as immaterial for the three months ended March 31, 2024, and 2023 . The following table shows the weighted-average interest rate for our term and whole life products : At March 31, 2024 2023 Term Interest accretion rate 5.26 % 5.32 % Current discount rate 5.09 4.81 Whole life Interest accretion rate 5.90 % 5.94 % Current discount rate 5.40 5.06 The discount rate assumption was developed by calculating forward rates from market yield curves of upper-medium grade fixed-income instruments. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 18 Table of Contents The following table shows the balances and changes in policyholders' account balances included in investment contract reserves: (Dollars in millions) Three months ended March 31, 2024 2023 Deferred annuity Universal life Deferred annuity Universal life Balance, beginning of period $ 656 $ 457 $ 734 $ 457 Premiums received 9 10 10 11 Policy charges — ( 10 ) — ( 10 ) Surrenders and withdrawals ( 37 ) ( 4 ) ( 36 ) ( 3 ) Benefit payments ( 3 ) ( 2 ) ( 3 ) ( 2 ) Interest credited 6 5 6 5 Balance, end of period $ 631 $ 456 $ 711 $ 458 Weighted average crediting rate 3.55 % 4.33 % 3.36 % 4.26 % Net amount at risk $ — $ 3,908 $ — $ 4,064 Cash surrender value 625 425 706 424 The net amount at risk above represents the guaranteed benefit amount in excess of the current account balances. The following table shows the balance of account values by range of guaranteed minimum crediting rates, in basis points, and the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums for our deferred annuity and universal life contracts: (Dollars in millions) At guaranteed minimum 1 to 50 basis points above 51-150 basis points above Greater than 150 basis points Total At March 31, 2024 Deferred annuity 1.00-3.00% $ 4 $ 337 $ 15 $ 226 582 3.01-4.00% 49 — — — 49 Total $ 53 $ 337 $ 15 $ 226 $ 631 Universal life 1.00-3.00% $ — $ 60 $ 58 $ 4 $ 122 3.01-4.00% 49 5 — — 54 Greater than 4.00% 280 — — — 280 Total $ 329 $ 65 $ 58 $ 4 $ 456 At March 31, 2023 Deferred annuity 1.00-3.00% $ 9 $ 423 $ 17 $ 212 $ 661 3.01-4.00% 50 — — — 50 Total $ 59 $ 423 $ 17 $ 212 $ 711 Universal life 1.00-3.00% $ 60 $ 47 $ 9 $ 2 $ 118 3.01-4.00% 53 — — — 53 Greater than 4.00% 287 — — — 287 Total $ 400 $ 47 $ 9 $ 2 $ 458 Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 19 Table of Contents The following table shows the balances and changes in the other additional liability related to the no-lapse guarantees contained within our universal life contracts: (Dollars in millions) Three months ended March 31, 2024 2023 Balance, beginning of period $ 128 $ 121 Balance, beginning of period before shadow reserve adjustments 129 123 Effect of changes in cash flow assumptions — — Effect of actual variances from expected experience — ( 1 ) Adjusted beginning of period balance 129 122 Interest accrual 1 1 Excess death benefits ( 2 ) — Attributed assessments 3 3 Effect of changes in interest rate assumptions ( 1 ) 1 Balance, end of period before shadow reserve adjustments 130 127 Shadow reserve adjustments ( 1 ) ( 2 ) Balance, end of period 129 125 Less reinsurance recoverable, end of period 6 6 Net other additional liability, after reinsurance recoverable $ 135 $ 131 Weighted-average duration of the other additional liability in years 31 34 The following table shows balances and changes in separate accounts balances during the period: (Dollars in millions) Three months ended March 31, 2024 2023 Balance, beginning of period $ 925 $ 892 Interest credited before policy charges 10 10 Benefit payments — ( 2 ) Other ( 8 ) ( 1 ) Balance, end of period $ 927 $ 899 Cash surrender value $ 925 $ 896 Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 20 Table of Contents NOTE 6 – Deferred Policy Acquisition Costs Expenses directly related to successfully acquired insurance policies – primarily commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We update our acquisition cost assumptions periodically to reflect actual experience. For property casualty, we evaluate the costs for recoverability. No premium deficiencies were recorded in the condensed consolidated statements of income, as the sum of the anticipated loss and loss expenses, policyholder dividends and unamortized deferred acquisition expenses did not exceed the related unearned premiums and anticipated investment income. The table below shows the deferred policy acquisition costs and asset reconciliation. (Dollars in millions) Three months ended March 31, 2024 2023 Property casualty: Deferred policy acquisition costs asset, beginning of period $ 749 $ 682 Capitalized deferred policy acquisition costs 407 372 Amortized deferred policy acquisition costs ( 360 ) ( 340 ) Deferred policy acquisition costs asset, end of period $ 796 $ 714 Life: Deferred policy acquisition costs asset, beginning of period $ 344 $ 331 Capitalized deferred policy acquisition costs 10 11 Amortized deferred policy acquisition costs ( 7 ) ( 8 ) Deferred policy acquisition costs asset, end of period $ 347 $ 334 Consolidated: Deferred policy acquisition costs asset, beginning of period $ 1,093 $ 1,013 Capitalized deferred policy acquisition costs 417 383 Amortized deferred policy acquisition costs ( 367 ) ( 348 ) Deferred policy acquisition costs asset, end of period $ 1,143 $ 1,048 The table below shows the life deferred policy acquisition costs asset by product: (Dollars in millions) Three months ended March 31, 2024 Term Whole life Deferred annuity Universal life Total Balance, beginning of period $ 236 $ 48 $ 8 $ 52 $ 344 Capitalized deferred policy acquisition costs 8 2 — — 10 Amortized deferred policy acquisition costs ( 6 ) ( 1 ) — — ( 7 ) Balance, end of period $ 238 $ 49 $ 8 $ 52 $ 347 Three months ended March 31, 2023 Balance, beginning of period $ 228 $ 43 $ 7 $ 53 $ 331 Capitalized deferred policy acquisition costs 9 2 — — $ 11 Amortized deferred policy acquisition costs ( 6 ) ( 1 ) — ( 1 ) $ ( 8 ) Balance, end of period $ 231 $ 44 $ 7 $ 52 $ 334 Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 21 Table of Contents NOTE 7 – Accumulated Other Comprehensive Income Accumulated other comprehensive income (AOCI) includes changes in unrealized gains and losses on investments, changes in pension obligations and changes in life policy reserves, reinsurance recoverable and other as follows: (Dollars in millions) Three months ended March 31, 2024 2023 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ ( 570 ) $ ( 123 ) $ ( 447 ) $ ( 847 ) $ ( 182 ) $ ( 665 ) OCI before investment gains and losses, net, recognized in net income ( 65 ) ( 13 ) ( 52 ) 163 35 128 Investment gains and losses, net, recognized in net income 10 2 8 — — — OCI ( 55 ) ( 11 ) ( 44 ) 163 35 128 AOCI, end of period $ ( 625 ) $ ( 134 ) $ ( 491 ) $ ( 684 ) $ ( 147 ) $ ( 537 ) Pension obligations: AOCI, beginning of period $ 30 $ 8 $ 22 $ 36 $ 9 $ 27 OCI excluding amortization recognized in net income — — — ( 5 ) ( 1 ) ( 4 ) Amortization recognized in net income — — — ( 1 ) — ( 1 ) OCI — — — ( 6 ) ( 1 ) ( 5 ) AOCI, end of period $ 30 $ 8 $ 22 $ 30 $ 8 $ 22 Life policy reserves, reinsurance recoverable and other: AOCI, beginning of period $ ( 13 ) $ ( 3 ) $ ( 10 ) $ 29 $ 5 $ 24 OCI before investment gains and losses, net, recognized in net income 47 10 37 ( 45 ) ( 9 ) ( 36 ) Investment gains and losses, net, recognized in net income — — — — — — OCI 47 10 37 ( 45 ) ( 9 ) ( 36 ) AOCI, end of period $ 34 $ 7 $ 27 $ ( 16 ) $ ( 4 ) $ ( 12 ) Summary of AOCI: AOCI, beginning of period $ ( 553 ) $ ( 118 ) $ ( 435 ) $ ( 782 ) $ ( 168 ) $ ( 614 ) Investments OCI ( 55 ) ( 11 ) ( 44 ) 163 35 128 Pension obligations OCI — — — ( 6 ) ( 1 ) ( 5 ) Life policy reserves, reinsurance recoverable and other OCI 47 10 37 ( 45 ) ( 9 ) ( 36 ) Total OCI ( 8 ) ( 1 ) ( 7 ) 112 25 87 AOCI, end of period $ ( 561 ) $ ( 119 ) $ ( 442 ) $ ( 670 ) $ ( 143 ) $ ( 527 ) Investment gains and losses, net, and other investment gains and losses, net, are recorded in the investment gains and losses, net, line item in the condensed consolidated statements of income. Amortization of pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses line items in the condensed consolidated statements of income. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 22 Table of Contents NOTE 8 – Reinsurance Primary components of our property casualty reinsurance assumed operations include involuntary and voluntary assumed as well as contracts from our reinsurance assumed operations, known as Cincinnati Re. Primary components of our ceded reinsurance include a property per risk treaty, property excess treaty, casualty per occurrence treaty, casualty excess treaty, property catastrophe treaty and retrocessions on our reinsurance assumed operations. Management’s decisions about the appropriate level of risk retention are affected by various factors, including changes in our underwriting practices, capacity to retain risks and reinsurance market conditions. The table below summarizes our consolidated property casualty insurance net written premiums, earned premiums and incurred loss and loss expenses: (Dollars in millions) Three months ended March 31, 2024 2023 Direct written premiums $ 2,125 $ 1,859 Assumed written premiums 239 244 Ceded written premiums ( 116 ) ( 84 ) Net written premiums $ 2,248 $ 2,019 Direct earned premiums $ 1,934 $ 1,760 Assumed earned premiums 152 159 Ceded earned premiums ( 94 ) ( 78 ) Earned premiums $ 1,992 $ 1,841 Direct incurred loss and loss expenses $ 1,193 $ 1,299 Assumed incurred loss and loss expenses 76 76 Ceded incurred loss and loss expenses 1 ( 58 ) Incurred loss and loss expenses $ 1,270 $ 1,317 Our life insurance company purchases reinsurance for protection of a portion of the risks that are written. Primary components of our life reinsurance program include individual mortality coverage, aggregate catastrophe and accidental death coverage in excess of certain deductibles. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 23 Table of Contents The table below summarizes our consolidated life insurance earned premiums and contract holders' benefits incurred: (Dollars in millions) Three months ended March 31, 2024 2023 Direct earned premiums $ 99 $ 96 Ceded earned premiums ( 20 ) ( 19 ) Earned premiums $ 79 $ 77 Direct contract holders' benefits incurred 94 97 Ceded contract holders' benefits incurred ( 15 ) ( 16 ) Contract holders' benefits incurred $ 79 $ 81 The ceded benefits incurred can vary depending on the type of life insurance policy held and the year the policy was issued. The allowance for uncollectible property casualty premiums was $ 16 million at both March 31, 2024, and December 31, 2023. The allowances for credit losses on other premiums receivable and reinsurance recoverable assets were immaterial at March 31, 2024, and December 31, 2023. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 24 Table of Contents NOTE 9 – Income Taxes The differences between the 21 % statutory federal income tax rate and our effective income tax rate were as follows: (Dollars in millions) Three months ended March 31, 2024 2023 Tax at statutory rate: $ 200 21.0 % $ 56 21.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds ( 5 ) ( 0.5 ) ( 5 ) ( 1.9 ) Dividend received exclusion ( 5 ) ( 0.5 ) ( 5 ) ( 1.9 ) Other 8 0.8 ( 3 ) ( 1.2 ) Provision for income taxes $ 198 20.8 % $ 43 16.0 % The provision for federal income taxes is based upon filing a consolidated income tax return for the company and its domestic subsidiaries. We continue to believe that after considering all positive and negative evidence of taxable income in the carryback and carryforward periods as permitted by law, it is more likely than not that all of the deferred tax assets on our U.S. domestic operations and those related to Cincinnati Global Underwriting Ltd. SM (Cincinnati Global) will be realized. As a result, we have no valuation allowance for our U.S. domestic operations or Cincinnati Global at both March 31, 2024, and December 31, 2023. Cincinnati Global Cincinnati Global had no operating loss carryforwards in the United States and $ 91 million and $ 100 million in the United Kingdom at March 31, 2024, and December 31, 2023, respectively. These Cincinnati Global losses can only be utilized within the Cincinnati Global group. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 25 Table of Contents NOTE 10 – Net Income Per Common Share Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are computed based on the weighted average number of common and dilutive potential common shares outstanding using the treasury stock method. The table shows calculations for basic and diluted earnings per share: (In millions, except per share data) Three months ended March 31, 2024 2023 Numerator: Net income—basic and diluted $ 755 $ 225 Denominator: Basic weighted-average common shares outstanding 156.8 157.2 Effect of share-based awards: Stock options 0.7 0.8 Nonvested shares 0.4 0.5 Diluted weighted-average shares 157.9 158.5 Earnings per share: Basic $ 4.82 $ 1.43 Diluted $ 4.78 $ 1.42 Number of anti-dilutive share-based awards 1.3 1.0 The source of dilution of our common shares are certain equity-based awards. See our 2023 Annual Report on Form 10-K, Item 8, Note 17, Share-Based Associate Compensation Plans, Page 177, for information about share-based awards. The above table shows the number of anti-dilutive share-based awards for the three months ended March 31, 2024 and 2023. NOTE 11 – Employee Retirement Benefits The following summarizes the components of net periodic benefit for our qualified and supplemental pension plans: (Dollars in millions) Three months ended March 31, 2024 2023 Service cost $ 1 $ 1 Non-service (benefit) costs: Interest cost 3 3 Expected return on plan assets ( 5 ) ( 5 ) Amortization of actuarial loss and prior service cost — ( 1 ) Other — ( 5 ) Total non-service benefit ( 2 ) ( 8 ) Net periodic benefit $ ( 1 ) $ ( 7 ) See our 2023 Annual Report on Form 10-K, Item 8, Note 13, Employee Retirement Benefits, Page 170, for information on our retirement benefits. The net periodic benefit is allocated in the same proportion primarily to the underwriting, acquisition and insurance expenses line item with the remainder allocated to the insurance losses and contract holders' benefits line item on the condensed consolidated statements of income for both 2024 and 2023. We made matching contributions totaling $ 9 million and $ 8 million to our 401(k) and Top Hat savings plans during the first quarter of 2024 and 2023, respectively. We m ade no con tributions to our qualified pension plan during the first three months of 2024. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 26 Table of Contents NOTE 12 – Commitments and Contingent Liabilities The company, through its insurance subsidiaries, is involved in claims litigation arising in the ordinary course of conducting its business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The company accounts for such activity through the establishment of unpaid loss and loss expense reserves. Subject to the uncertainties discussed in Note 4, Property Casualty Loss and Loss Expenses, and in the discussion in the balance of this Note, we believe that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses, costs of defense, and reinsurance recoveries, is immaterial to our consolidated financial position, results of operations and cash flows. Beginning in April 2020, like many companies in the property casualty insurance industry, the company’s property casualty subsidiaries were named as defendants in lawsuits seeking insurance coverage under commercial property insurance policies issued by the company for alleged losses resulting from the shutdown or suspension of their businesses due to the COVID-19 pandemic. Although the allegations vary, the plaintiffs generally seek a declaration of insurance coverage, damages for breach of contract in unspecified amounts for claim denials, interest and attorney fees. Some of the lawsuits also allege that the insurance claims were denied in bad faith or otherwise in violation of state laws and seek extra-contractual or punitive damages. The company denies the allegations in these lawsuits and continues to vigorously defend them. The company maintains that it has no coverage obligations with respect to these lawsuits for business income allegedly lost by the plaintiffs due to the COVID-19 pandemic based on the terms of the applicable insurance policies. Although the policy terms vary, in general, the claims at issue in these lawsuits were denied because the policyholder identified no direct physical loss or damage to property at the insured premises, and the governmental orders that led to the complete or partial shutdown of the business were not due to the existence of any direct physical loss or damage to property in the immediate vicinity of the insured premises and did not prohibit access to the insured premises, as required by the terms of the insurance policies. Depending on the individual policy, additional policy terms and conditions may also prohibit coverage, such as exclusions for pollutants, ordinance or law, loss of use, and acts or decisions. The company’s standard commercial property insurance policies generally did not contain a specific virus exclusion. In addition to the inherent difficulty in predicting litigation outcomes, the COVID-19 pandemic business income coverage lawsuits present a number of uncertainties and contingencies that are not yet known, including how many policyholders will ultimately file claims, the extent to which any class may be certified, and the size and scope of any such classes. The legal theories advanced by plaintiffs vary by case as do the state laws that govern the policy interpretation. Most of these lawsuits have been dismissed, both by courts and by plaintiffs, but some have been appealed and a few others remain pending in trial courts. Appellate decisions issued to date generally have been favorable for the insurance industry, and the company has received numerous favorable rulings on appeal with no adverse appellate rulings to date. Some cases remain to be decided and in some jurisdictions, cases have been stayed pending appellate decisions in their state or federal circuit. Accordingly, little discovery has occurred on pending cases. In addition, business income calculations depend upon a wide range of factors that are particular to the circumstances of each individual policyholder and, here, virtually none of the plaintiffs have submitted proofs of loss or otherwise quantified or factually supported any allegedly covered loss. Moreover, the company’s experience shows that demands for damages often bear little relation to a reasonable estimate of potential loss. Accordingly, management cannot now reasonably estimate the possible loss or range of loss, if any. Nonetheless, given the number of claims and potential claims, the indeterminate amounts sought, and the inherent unpredictability of litigation, it is possible that adverse outcomes, if any, in the aggregate could have a material adverse effect on the company’s consolidated financial position, results of operations and cash flows. The company and its subsidiaries also are occasionally involved in other legal and regulatory proceedings, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of state or national classes. Such proceedings have alleged, for example, improper depreciation of labor costs in repair estimates. The company’s insurance subsidiaries also are occasionally parties to individual actions in which extra-contractual damages, punitive damages or penalties are sought, such as claims alleging bad faith handling of insurance claims or writing unauthorized coverage or claims alleging discrimination by former or current associates. On a quarterly basis, we review these outstanding matters. Under current accounting guidance, we establish accruals when it is probable that a covered loss has been incurred and we can reasonably estimate its potential Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 27 Table of Contents exposure. The company accounts for such probable and estimable losses, if any, through the establishment of legal expense reserves. Based on our quarterly review, we believe that our accruals for probable and estimable losses are reasonable and that the amounts accrued do not have a material effect on our consolidated financial position, results of operations and cash flows. However, if any one or more of these matters results in a judgment against us or settlement for an amount that is significantly greater than the amount accrued, the resulting liability could have a material effect on the company’s consolidated financial position, results of operations and cash flows. Based on our most recent review, our estimate for any other matters for which the risk of loss is not probable, but more than remote, is immaterial. NOTE 13 – Segment Information We operate primarily in two industries, property casualty insurance and life insurance. Our CODM regularly reviews our reporting segments to make decisions about allocating resources and assessing performance. Our reporting segments are: • Commercial lines insurance • Personal lines insurance • Excess and surplus lines insurance • Life insurance • Investments We report as Other the noninvestment operations of the parent company and its noninsurer subsidiary, CFC Investment Company. We also report as Other the underwriting results of Cincinnati Re and Cincinnati Global. See our 2023 Annual Report on Form 10-K, Item 8, Note 18, Segment Information, Page 180, for a description of revenue, income or loss before income taxes and identifiable assets for each of the five segments. Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 28 Table of Contents Segment information is summarized in the following table: (Dollars in millions) Three months ended March 31, 2024 2023 Revenues: Commercial lines insurance Commercial casualty $ 365 $ 377 Commercial property 336 299 Commercial auto 220 213 Workers' compensation 61 74 Other commercial 100 93 Commercial lines insurance premiums 1,082 1,056 Fee revenues 1 1 Total commercial lines insurance 1,083 1,057 Personal lines insurance Personal auto 208 166 Homeowner 303 232 Other personal 77 66 Personal lines insurance premiums 588 464 Fee revenues 1 1 Total personal lines insurance 589 465 Excess and surplus lines insurance 139 127 Fee revenues 1 — Total excess and surplus lines insurance 140 127 Life insurance premiums 79 77 Fee revenues 1 2 Total life insurance 80 79 Investments Investment income, net of expenses 245 210 Investment gains and losses, net 612 106 Total investment revenue 857 316 Other Premiums 183 194 Other 3 3 Total other revenues 186 197 Total revenues $ 2,935 $ 2,241 Income (loss) before income taxes: Insurance underwriting results Commercial lines insurance $ 39 $ ( 2 ) Personal lines insurance 37 ( 57 ) Excess and surplus lines insurance 12 13 Life insurance 10 8 Investments 826 286 Other 29 20 Total income before income taxes $ 953 $ 268 Identifiable assets: March 31, 2024 December 31, 2023 Property casualty insurance $ 5,298 $ 5,294 Life insurance 1,564 1,562 Investments 25,878 24,999 Other 987 914 Total $ 33,727 $ 32,769 Cincinnati Financial Corporation First-Quarter 2024 10-Q Page 29 Table of Contents