What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-07-25 compared with 2024-04-25 · 274 added, 232 removed, 666 unchanged (43% of the section changed)

37 unchanged sentences

• Declines in overall stock market values negatively affecting our equity portfolio and book value

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

• Interest rate fluctuations or other factors that could significantly affect:

25 unchanged sentences

• Inability or unwillingness to nimbly develop and introduce coverage product updates and innovations that our competitors offer and consumers expect to find in the marketplace

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

• Actions of insurance departments, state attorneys general or other regulatory agencies, including a change to a federal system of regulation from a state-based system, that:

18 unchanged sentences

The ultimate changes and eventual effects, if any, of these initiatives are uncertain.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

CORPORATE FINANCIAL HIGHLIGHTS

Net Income and Comprehensive Income Data

(Dollars in millions, except per share data) Three months ended March 31,

2024 2023 % Change

(Dollars in millions, except per share data) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Earned premiums $ 2,156 $ 1,943 11 $ 4,227 $ 3,861 9

7 unchanged sentences

Diluted weighted average shares outstanding 157.5 158.0 0 157.7 158.3 0

Total revenues increased $694 million for the first quarter of 2024, compared with the first quarter of 2023, primarily due to an increase in net investment gains in addition to higher earned premiums and investment income.

Total revenues decreased $61 million for the second quarter of 2024, compared with the second quarter of 2023, primarily due to a decrease in net investment gains that offset higher earned premiums and investment income.

For the first six months of 2024, compared with the same period of 2023, total revenues increased $633 million, including higher earned premiums, investment income and net investment gains.

Premium and investment revenue trends are discussed further in the respective sections of Financial Results.

2 unchanged sentences

The change in fair value of securities is also generally independent of the insurance underwriting process.

Net income for the first quarter of 2024, compared with first-quarter 2023, increased $530 million, including increases of $399 million in after-tax net investment gains and losses, $111 million in after-tax property casualty underwriting income and $28 million in after-tax investment income.

Catastrophe losses for the first quarter of 2024, mostly weather related, were $93 million lower after taxes and favorably affected both net income and property casualty underwriting income.

Net income for the second quarter of 2024, compared with the second quarter of 2023, decreased $222 million, including decreases of $235 million in after-tax net investment gains and losses and $9 million in after-tax property casualty underwriting income that offset an increase of $17 million in after-tax investment income.

Catastrophe losses for the second quarter of 2024, mostly weather related, were $7 million higher after taxes and unfavorably affected both net income and property casualty underwriting income.

Life insurance segment results increased by $9 million on a pretax basis.

For the first six months of 2024, net income increased $308 million, compared with the first six months of 2023,

including increases of $164 million in after-tax investment gains and losses, $102 million in after-tax property casualty underwriting income and $45 million in after-tax investment income.

The property casualty underwriting income increase included a favorable $86 million after-tax effect from lower catastrophe losses.

Life insurance segment results increased by $11 million on a pretax basis.

Performance by segment is discussed below in Financial Results.

4 unchanged sentences

In January 2024, the board of directors increased the regular quarterly dividend to 81 cents per share, setting the stage for our 64 th consecutive year of increasing cash dividends.

During the first three months of 2024, cash dividends declared by the company increased 8% compared with the same period of 2023.

During the first six months of 2024, cash dividends declared by the company increased 8% compared with the same period of 2023.

Our board regularly evaluates relevant factors in decisions related to dividends and share repurchases.

The 2024 dividend increase reflected our strong operating performance and signaled management's and the board's positive outlook and confidence in our outstanding capital, liquidity and financial flexibility.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

Balance Sheet Data and Performance Measures

(Dollars in millions, except share data) At March 31, At December 31,

(Dollars in millions, except share data) At June 30, At December 31,

Total investments $ 26,684 $ 25,357

5 unchanged sentences

Debt-to-total-capital ratio 6.0 % 6.3 %

Total assets at March 31, 2024, increased 3% compared with year-end 2023, and included a 4% increase in total investments that reflected net purchases and higher fair values for many securities in our equity portfolio.

Shareholders' equity increased 5% and book value per share also increased 5% during the first three months of 2024.

Total assets at June 30, 2024, increased 6% compared with year-end 2023, and included a 5% increase in total investments that reflected net purchases and higher fair values for many securities in our equity portfolio.

Shareholders' equity increased 6% and book value per share also increased 6% during the first six months of 2024.

Our debt-to-total-capital ratio (capital is the sum of debt plus shareholders' equity) decreased compared with year-end 2023.

Our value creation ratio is our primary performance metric.

As shown in the tables below, that ratio was 5.9% for the first three months of 2024, better than the same period in 2023, including higher net income before investment gains and a higher amount in overall net gains from our investment portfolio.

Book value per share increased $3.77 during the first three months of 2024 and contributed 4.9 percentage points to the value creation ratio, while dividends declared at $0.81 per share contributed 1.0 points.

As shown in the tables below, that ratio was 8.2% for the first six months of 2024, better than 7.2% for the same period in 2023, primarily due to higher net income before investment gains.

Book value per share increased $4.73 during the first six months of 2024 and contributed 6.1 percentage points to the value creation ratio, while dividends declared at $1.62 per share contributed 2.1 points.

Value creation ratio major contributors and in total, along with calculations from per-share amounts, are shown in the tables below.

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

2024 2023 2024 2023

Value creation ratio major contributors:

4 unchanged sentences

Value creation ratio 2.2 % 4.0 % 8.2 % 7.2 %

Cincinnati Financial Corporation First-Quarter 2024 10-Q

(Dollars are per share) Three months ended March 31,

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

(Dollars are per share) Three months ended June 30, Six months ended June 30,

2024 2023 2024 2023

Value creation ratio:

14 unchanged sentences

We market our insurance products through a select group of independent insurance agencies as discussed in our 2023 Annual Report on Form 10-K, Item 1, Our Business and Our Strategy, Page 6.

At March 31, 2024, we actively marketed through 2,125 agencies located in 46 states.

At June 30, 2024, we actively marketed through 2,171 agencies located in 46 states.

We maintain a long-term perspective that guides us in addressing immediate challenges or opportunities while focusing on the major decisions that best position our company for success through all market cycles.

2 unchanged sentences

• Premium growth – We believe our agency relationships and initiatives can lead to a property casualty written premium growth rate over any five-year period that exceeds the industry average.

For the first three months of 2024, our consolidated property casualty net written premium year-over-year growth was 11%.

For the first six months of 2024, our consolidated property casualty net written premium year-over-year growth was 13%.

As of March 2024, A.M.

2 unchanged sentences

The industry's growth rate excludes its mortgage and financial guaranty lines of business.

• Combined ratio – We believe our underwriting philosophy and initiatives can generate a GAAP combined ratio over any five-year period that is consistently within the range of 92% to 98%.

For the first three months of 2024, our GAAP combined ratio was 93.6%, including 7.5 percentage points of current accident year catastrophe losses partially offset by 5.0 percentage points of favorable loss reserve development on prior accident years.

Our statutory combined ratio was 92.3% for the first three months of 2024.

• Combined ratio – We believe our underwriting philosophy and initiatives can generate an average GAAP combined ratio over any five-year period that is consistently within the range of 92% to 98%.

For the first six months of 2024, our GAAP combined ratio was 96.1%, including 9.9 percentage points of current accident year catastrophe losses partially offset by 3.4 percentage points of favorable loss reserve development on prior accident years.

Our statutory combined ratio was 94.6% for the first six months of 2024.

As of March 2024, A.M.

2 unchanged sentences

• Investment contribution – We believe our investment philosophy and initiatives can drive investment income growth and lead to a total return on our equity investment portfolio over a five-year period that exceeds the five-year return of the Standard & Poor's 500 Index.

For the first three months of 2024, pretax investment income was $245 million, up 17% compared with the same period in 2023.

For the first six months of 2024, pretax investment income was $487 million, up 13% compared with the same period in 2023.

We believe our investment portfolio mix provides an appropriate balance of income stability and growth with capital appreciation potential.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

Financial Strength

4 unchanged sentences

Our strong parent-company liquidity and financial strength increase our flexibility to maintain a cash dividend through all periods and to continue to invest in and expand our insurance operations.

At March 31, 2024, we held $4.906 billion of our cash and cash equivalents and invested assets at the parent-company level, of which $4.543 billion, or 92.6%, was invested in common stocks, and $163 million, or 3.3%, was cash or cash equivalents.

Our debt-to-total-capital ratio was 6.1% at March 31, 2024.

Another important indicator of financial strength is our ratio of property casualty net written premiums to statutory surplus, which was 1.0-to-1 for the 12 months ended March 31, 2024, matching year-end 2023.

At June 30, 2024, we held $5.002 billion of our cash and cash equivalents and invested assets at the parent-company level, of which $4.643 billion, or 92.8%, was invested in common stocks, and $166 million, or 3.3%, was cash or cash equivalents.

Our debt-to-total-capital ratio was 6.0% at June 30, 2024.

Another important indicator of financial strength is our ratio of property casualty net written premiums to statutory surplus, which was 1.1-to-1 for the 12 months ended June 30, 2024, compared with 1.0-to-1 at year-end 2023.

Financial strength ratings assigned to us by independent rating firms also are important.

4 unchanged sentences

please see each rating agency's website for its most recent report on our ratings.

At April 24, 2024, our insurance subsidiaries continued to be highly rated.

At July 24, 2024, our insurance subsidiaries continued to be highly rated.

Insurer Financial Strength Ratings

10 unchanged sentences

A+ Strong 5 of 21 A+ Strong 5 of 21 - - - Stable

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

CONSOLIDATED PROPERTY CASUALTY INSURANCE HIGHLIGHTS

1 unchanged sentence

SM (Cincinnati Global).

(Dollars in millions) Three months ended March 31,

2024 2023 % Change

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Earned premiums $ 2,075 $ 1,863 11 $ 4,067 $ 3,704 10

8 unchanged sentences

Underwriting expenses 631 557 13 1,225 1,093 12

Underwriting profit (loss) $ 131 $ (10) nm

Underwriting profit $ 35 $ 47 (26) $ 166 $ 37 349

Ratios as a percent of earned premiums:

9 unchanged sentences

Combined ratio before catastrophe losses and prior years reserve development 88.2 % 90.4 % (2.2) 89.6 % 90.3 % (0.7)

Our consolidated property casualty insurance operations generated an underwriting profit of $131 million for the first quarter of 2024.

Compared with an underwriting loss of $10 million for the first quarter of 2023, the first-quarter 2024 improvement of $141 million included a favorable decrease of $118 million in losses from catastrophes, mostly caused by severe weather.

The first-quarter 2024 change in underwriting profitability also included higher current accident year loss and loss expenses before catastrophe losses that grew slightly faster than earned premiums and higher amounts of favorable reserve development on prior accident years.

Underwriting results for the first quarter of 2024 included improved overall insured loss experience before catastrophe effects, as price increases have helped to offset recent-year elevated paid losses reflecting economic or other forms of inflation.

Our consolidated property casualty insurance operations generated an underwriting profit of $35 million for the second quarter and $166 million for the first six months of 2024.

The second-quarter 2024 underwriting profit decrease of $12 million, compared with second-quarter 2023, included an unfavorable increase of $9 million in losses from catastrophes, mostly caused by severe weather.

The second-quarter 2024 change in underwriting profitability also included higher current accident year loss and loss expenses before catastrophe losses that grew slower than earned premiums and lower amounts of favorable reserve development on prior accident years.

The six-month underwriting profit increase of $129 million, compared with the first six months of 2023, included a favorable decrease of $109 million in losses from catastrophes.

The six-month 2023 period also experienced higher current accident year loss and loss expenses before catastrophe losses that grew slower than earned premiums and lower amounts of favorable reserve development on prior accident years.

Underwriting results for the second quarter and first six months of 2024 included improved current accident year loss experience, as price increases have helped to offset recent-year elevated paid losses reflecting economic or other forms of inflation.

Elevated inflation was a driver of higher losses and loss expenses in both 2024 and 2023 as costs have increased significantly to repair damaged autos or other property that we insure.

3 unchanged sentences

We believe future property casualty underwriting results will continue to benefit from price increases and our ongoing initiatives to improve pricing precision and loss experience related to claims and loss control practices.

For all property casualty lines of business in aggregate, net loss and loss expense reserves at March 31, 2024, were $233 million, or 3%, higher than at year-end 2023, including an increase of $272 million for the incurred but not reported (IBNR) portion.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

For all property casualty lines of business in aggregate, net loss and loss expense reserves at June 30, 2024, were $578 million, or 7%, higher than at year-end 2023, including an increase of $506 million for the incurred but not reported (IBNR) portion.

We measure and analyze property casualty underwriting results primarily by the combined ratio and its component ratios.

2 unchanged sentences

A combined ratio above 100% indicates that an insurance company's losses and expenses exceeded premiums.

Our consolidated property casualty combined ratio for the first quarter of 2024 improved by 7.1 percentage points, compared with the same period of 2023, including a decrease of 6.9 points from lower catastrophe losses and loss expenses.

Our consolidated property casualty combined ratio for the second quarter of 2024 increased by 0.9 percentage points, compared with the same period of 2023, including a decrease of 0.8 points from catastrophe losses and loss expenses.

For the first six months of 2024, compared with the 2023 six-month period, our combined ratio improved by 3.1 percentage points, including a decrease of 3.8 points from catastrophe losses and loss expenses.

Other combined ratio components that changed are discussed below and in further detail in Financial Results by property casualty insurance segment.

1 unchanged sentence

The combined ratio can also be affected by updated estimates of loss and loss expense reserves established for claims that occurred in prior periods, referred to as prior accident years.

Net favorable development on prior accident year reserves, including reserves for catastrophe losses, benefited the combined ratio by 5.0 percentage points in the first three months of 2024, compared with 3.2 percentage points in the same period of 2023.

Net favorable development on prior accident year reserves, including reserves for catastrophe losses, benefited the combined ratio by 3.4 percentage points in the first six months of 2024, compared with 4.3 percentage points in the same period of 2023.

Net favorable development is discussed in further detail in Financial Results by property casualty insurance segment.

The ratio for current accident year loss and loss expenses before catastrophe losses increased in the first three months of 2024.

That 61.3% ratio was 0.3 percentage points higher, compared with the 61.0% accident year 2023 ratio measured as of March 31, 2023, including a decrease of 1.6 points in the ratio for large losses of $2 million or more per claim, discussed below.

The ratio increase of 0.3 percentage points included an increase of 1.8 points for the IBNR portion and a decrease of 1.5 points for the case incurred portion.

The underwriting expense ratio increased for the first three months of 2024, compared with the same period a year ago.

The increase was primarily due to an increase in profit-sharing commissions for agencies.

The ratio also included ongoing expense management efforts and higher earned premiums.

The ratio for current accident year loss and loss expenses before catastrophe losses improved in the first six months of 2024.

That 59.5% ratio was 1.3 percentage points lower, compared with the 60.8% accident year 2023 ratio measured as of June 30, 2023, including a decrease of 1.5 points in the ratio for large losses of $2 million or more per claim, discussed below.

The ratio improvement of 1.3 percentage points included an increase of 0.5 points for the IBNR portion and a decrease of 1.8 points for the case incurred portion.

The underwriting expense ratio increased for the second quarter and first six months of 2024, compared with the same periods a year ago.

The increases were largely due to increases in profit-sharing commissions for agencies and employee-related expenses.

The ratios also included ongoing expense management efforts and higher earned premiums.

Consolidated Property Casualty Insurance Premiums

(Dollars in millions) Three months ended March 31,

2024 2023 % Change

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Agency renewal written premiums $ 1,843 $ 1,643 12 $ 3,526 $ 3,178 11

6 unchanged sentences

Price change trends that heavily influence renewal written premium increases or decreases, along with other premium growth drivers for 2024, are discussed in more detail by segment below in Financial Results.

Consolidated property casualty net written premiums for the three months ended March 31, 2024, grew $229 million compared with the same period of 2023.

Consolidated property casualty net written premiums for the second quarter and six months ended June 30, 2024, grew $309 million and $538 million compared with the same periods of 2023.

Our premium growth initiatives from prior years have provided an ongoing favorable effect on growth during the current year, particularly as newer agency relationships mature over time.

Consolidated property casualty agency new business written premiums increased by $95 million for the first three months of 2024, compared with the same period of 2023.

New agency appointments during 2024 and 2023 produced a $24 million increase in standard lines new business for the first three months of 2024 compared with the same period of 2023.

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

Consolidated property casualty agency new business written premiums increased by $104 million and $199 million for the second quarter and first six months of 2024, compared with the same periods of 2023.

New agency appointments during 2024 and 2023 produced a $52 million increase in standard lines new business for the first six months of 2024 compared with the same period of 2023.

As we appoint new agencies that choose to move accounts to us, we report these accounts as new business.

1 unchanged sentence

We believe these seasoned accounts tend to be priced more accurately than business that may be less familiar to our agent upon obtaining it from a competing agent.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Net written premiums for Cincinnati Re, included in other written premiums, decreased by $28 million to $202 million for the three months ended March 31, 2024, compared with the same period of 2023.

Net written premiums for Cincinnati Re, included in other written premiums, increased by $30 million in the second quarter and $2 million for the six months ended June 30, 2024, compared with the same periods of 2023, to $207 million and $409 million, respectively.

Cincinnati Re assumes risks through reinsurance treaties and in some cases cedes part of the risk and related premiums to one or more unaffiliated reinsurance companies through transactions known as retrocessions.

Cincinnati Global is also included in other written premiums.

Net written premiums increased for Cincinnati Global by $18 million to $82 million for the three months ended March 31, 2024, compared with the same period of 2023.

Net written premiums for Cincinnati Global decreased by $15 million in the second quarter and increased by $3 million for the six months ended June 30, 2024, to $67 million and $149 million, respectively, compared with the same periods of 2023.

Other written premiums include premiums ceded to reinsurers as part of our reinsurance ceded program.

An increase in ceded premiums reduced net written premiums by $5 million for the first three months of 2024, compared with the same period of 2023.

An increase in ceded premiums reduced net written premiums by $11 million and $16 million for the second quarter and first six months of 2024, compared with the same period of 2023.

Catastrophe losses and loss expenses typically have a material effect on property casualty results and can vary significantly from period to period.

Losses from catastrophes contributed 5.9 percentage points to the combined ratio in the first three months of 2024, compared with 12.8 percentage points in the same period of 2023.

The reinsurance program for Cincinnati Re effective June 1, 2023, provides property catastrophe excess of loss coverage and includes $40 million of coverage for various combinations of occurrences for business written in North America on a direct basis.

There is a per occurrence limit of $20 million for Cincinnati Re catastrophe losses in excess of $80 million per event.

The remaining coverage is for business written by Cincinnati Re and on a direct basis for catastrophe losses in excess of $600 million per event.

During 2023 and for the first three months of 2024, there was no recovery from reinsurers pertaining to these treaties.

Losses from catastrophes contributed 11.2 and 8.6 percentage points to the combined ratio in the second quarter and first six months of 2024, compared with 12.0 and 12.4 percentage points in the same period of 2023.

Effective June 1, 2024, we restructured our reinsurance program for Cincinnati Re only, providing retrocession coverages with various triggers, exclusions and unique features.

That program included property catastrophe excess of loss coverage with a total available aggregate limit of $60 million in excess of $80 million per occurrence.

Coverage for Cincinnati Re only with a total available aggregate limit of $20 million in excess of $80 million per occurrence expired during the second quarter of 2024.

That expiration also included the shared coverage for Cincinnati Re and the direct business applying to catastrophe losses in excess of $600 million.

Ceded premiums for the one-year renewal period of coverage from the treaty effective June 1, 2024, are estimated to be approximately $16 million.

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

The following table shows consolidated property casualty insurance catastrophe losses and loss expenses incurred, net of reinsurance, as well as the effect of loss development on prior period catastrophe events.

1 unchanged sentence

Consolidated Property Casualty Insurance Catastrophe Losses and Loss Expenses Incurred

(Dollars in millions, net of reinsurance) Three months ended March 31,

Dates Region lines lines lines Other Total

(Dollars in millions, net of reinsurance) Three months ended June 30, Six months ended June 30,

Dates Region lines lines lines Other Total lines lines lines Other Total

8-10 Midwest, Northeast, South $ (2) $ 1 $ — $ — $ (1) $ 16 $ 9 $ — $ — $ 25

12-17 Midwest, South 2 5 — — 7 35 27 — — 62

4 Midwest, Northeast, South 13 23 — — 36 13 23 — — 36

May 6-10 Midwest, South 19 28 — — 47 19 28 — — 47

May 25-26 Midwest, South 37 28 1 — 66 37 28 1 — 66

All other 2024 catastrophes 42 52 2 3 99 66 95 3 3 167

4 unchanged sentences

1 Midwest, Northeast, South 20 9 — — 29 63 33 — — 96

3-7 Midwest, Northeast, South 10 30 — — 40 10 30 — — 40

May 2-9 Midwest, South 25 7 — — 32 25 7 — — 32

All other 2023 catastrophes 62 67 2 — 131 82 122 3 5 212

1 unchanged sentence

Calendar year incurred total $ 119 $ 97 $ 3 $ 5 $ 224 $ 229 $ 212 $ 4 $ 14 $ 459

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

The following table includes data for losses incurred of $2 million or more per claim, net of reinsurance.

Consolidated Property Casualty Insurance Losses Incurred by Size

(Dollars in millions, net of reinsurance) Three months ended March 31,

2024 2023 % Change

(Dollars in millions, net of reinsurance) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Current accident year losses greater than $5 million $ 31 $ 43 (28) $ 31 $ 79 (61)

17 unchanged sentences

Our analysis continues to indicate no unexpected concentration of large losses and case reserve increases by risk category, geographic region, policy inception, agency or field marketing territory.

The first-quarter 2024 property casualty total large losses incurred of $44 million, net of reinsurance, was lower than the $95 million quarterly average during full-year 2023 and the $60 million experienced for the first quarter of 2023.

The ratio for these large losses was 1.0 percentage point lower compared with last year's first quarter.

We believe results for the three-month period largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

The second-quarter 2024 property casualty total large losses incurred of $74 million, net of reinsurance, was lower than the $95 million quarterly average during full-year 2023 and the $97 million experienced for the second quarter of 2023.

The ratio for these large losses was 1.7 percentage points lower compared with last year's second quarter.

The second-quarter 2024 amount of total large losses incurred helped contribute to the decrease in the six-month 2024 total large loss ratio, compared with 2023, in addition to a first-quarter 2024 ratio that was 1.0 point lower than the first quarter of 2023.

We believe results for the three- and six-month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

Losses by size are discussed in further detail in results of operations by property casualty insurance segment.

6 unchanged sentences

• Investments

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

COMMERCIAL LINES INSURANCE RESULTS

(Dollars in millions) Three months ended March 31,

2024 2023 % Change

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Earned premiums $ 1,107 $ 1,066 4 $ 2,189 $ 2,122 3

8 unchanged sentences

Underwriting expenses 352 326 8 677 637 6

Underwriting profit (loss) $ 39 $ (2) nm

Underwriting profit $ 10 $ 33 (70) $ 49 $ 31 58

Ratios as a percent of earned premiums:

10 unchanged sentences

Performance highlights for the commercial lines segment include:

• Premiums – Earned premiums and net written premiums for the commercial lines segment grew during the first three months of 2024, compared with the same period a year ago, due to agency renewal written premium growth that continued to include higher average pricing as well as growth in agency new business written premiums.

• Premiums – Earned premiums and net written premiums for the commercial lines segment grew during the second quarter and first six months of 2024, compared with the same periods a year ago, due to agency renewal written premium growth that continued to include higher average pricing as well as growth in agency new business written premiums.

The table below analyzes the primary components of premiums.

1 unchanged sentence

We seek to maintain appropriate pricing discipline for both new and renewal business as our agents and underwriters assess account quality to make careful decisions on a policy-by-policy basis whether to write or renew a policy.

Agency renewal written premiums increased by 3% for the first three months of 2024, compared with the same period of 2023, including price increases.

During the first quarter of 2024, our overall standard commercial lines policies averaged estimated renewal price increases at percentages near the low end of the high-single-digit range.

Agency renewal written premiums increased by 4% for both the second quarter and first six months of 2024, compared with the same periods of 2023, including price increases.

During the second quarter of 2024, our overall standard commercial lines policies averaged estimated renewal price increases at percentages near the low end of the high-single-digit range.

We continue to segment commercial lines policies, emphasizing identification and retention of those we believe have relatively stronger pricing.

1 unchanged sentence

We measure average changes in commercial lines renewal pricing as the percentage rate of change in renewal premium for the new policy period compared with the premium for the expiring policy period, assuming no change in the level of insured exposures or policy coverage between those periods for the respective policies.

Our average overall commercial lines renewal pricing change includes the impact of flat pricing for certain coverages within package policies written for a three-year term that were in force but did not expire during

Cincinnati Financial Corporation First-Quarter 2024 10-Q

the period being measured.

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

Therefore, our reported change in average commercial lines renewal pricing reflects a blend of three-year policies that did not expire and other policies that did expire during the measurement period.

For commercial lines policies that did expire and were then renewed during the first quarter of 2024, we estimate that our average percentage price increases were in the high-single-digit range for our commercial casualty, commercial property and commercial auto lines of business.

For commercial lines policies that did expire and were then renewed during the second quarter of 2024, we estimate that our average percentage price increases were in the high-single-digit range for our commercial casualty, commercial property and commercial auto lines of business.

The estimated average percentage price change for workers' compensation was a decrease in the mid-single-digit range.

Our commercial lines segment's increase in agency renewal written premiums for the first three months of 2024 also included changes in the level of insured exposures.

Our commercial lines segment's increase in agency renewal written premiums for the first six months of 2024 also included changes in the level of insured exposures.

Part of the insured exposure increase reflects our response to inflation effects that increase the cost of building materials to repair damaged commercial structures.

1 unchanged sentence

Renewal premiums for certain policies, primarily our commercial casualty and workers' compensation lines of business, include the results of policy audits that adjust initial premium amounts based on differences between estimated and actual sales or payroll related to a specific policy.

Audits completed during the first three months of 2024 contributed $29 million to net written premiums, compared with $35 million for the same period of 2023.

New business written premiums for commercial lines increased $48 million during the first three months of 2024, compared with the same period of 2023, as we continued to carefully underwrite each policy in a highly competitive market.

Audits completed during the first six months of 2024 contributed $54 million to net written premiums, compared with $73 million for the same period of 2023.

New business written premiums for commercial lines increased $44 million and $92 million during the second quarter and first six months of 2024, compared with the same periods of 2023, as we continued to carefully underwrite each policy in a highly competitive market.

Trend analysis for year-over-year comparisons of individual quarters is more difficult to assess for commercial lines new business written premiums, due to inherent variability.

1 unchanged sentence

Other written premiums include premiums ceded to reinsurers as part of our reinsurance ceded program.

For our commercial lines insurance segment, an increase in ceded premiums reduced net written premiums by less than $1 million for the first three months of 2024, compared with the same period of 2023.

For our commercial lines insurance segment, an increase in ceded premiums reduced net written premiums by $5 million and $6 million for the second quarter and first six months of 2024, compared with the same periods of 2023.

Commercial Lines Insurance Premiums

(Dollars in millions) Three months ended March 31,

2024 2023 % Change

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Agency renewal written premiums $ 1,023 $ 985 4 $ 2,099 $ 2,026 4

4 unchanged sentences

Earned premiums $ 1,107 $ 1,066 4 $ 2,189 $ 2,122 3

• Combined ratio – The first-quarter 2024 commercial lines combined ratio improved by 3.9 percentage points, compared with the first quarter of 2023, including a decrease of 4.2 points in losses from catastrophes.

The first-quarter combined ratio also decreased 0.9 points from current accident year loss and loss expenses before catastrophe losses, including an increase of 1.7 points for the IBNR portion and a decrease of 2.6 points for the case incurred portion.

Underwriting results also included a higher level of favorable reserve development on prior accident years, as discussed below.

The current accident year ratios were measured as of March 31 of the respective years and included a decrease of 2.9 percentage points for the first three months of 2024 in the ratio for large losses of $2 million or more per claim, discussed below.

• Combined ratio – The second-quarter 2024 commercial lines combined ratio increased by 2.2 percentage points, compared with the second quarter of 2023, including a decrease of 1.8 points in losses from catastrophes.

The second-quarter combined ratio also decreased 0.3 points from current accident year loss and loss expenses before catastrophe losses, including an increase of 2.8 points for the IBNR portion and a decrease of 3.1 points for the case incurred portion.

For the first six months of 2024, the combined ratio improved by 0.7 percentage points, compared with the same period a year ago, including a decrease of 2.9 points in losses from catastrophes.

The six-month 2024 combined ratio also included a decrease of 0.6 points from current accident year loss and loss expenses before catastrophe losses, including an increase of 2.2 points in the IBNR portion and a decrease of 2.8 points for the case incurred portion.

Underwriting results also included a lower level of favorable reserve development on prior accident years, as discussed below.

The current accident year ratios were measured as of June 30 of the respective years and included a decrease of 2.3 percentage points for the first six months of 2024 in the ratio for large losses of $2 million or more per claim, discussed below.

When estimating the ultimate cost of total loss and loss expenses, we consider many factors, including trends for inflation, historical paid and reported losses, large loss activity and other data or information for the industry or our company.

Elevated inflation in recent years has been a driver of higher losses and loss expenses as costs have increased significantly to repair damaged business property or autos that we insure, in addition to higher losses for liability coverages for some of our lines of business.

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

higher losses for liability coverages for some of our lines of business.

Due to increased uncertainty regarding ultimate losses, we intend to remain prudent in reserving for estimated ultimate losses until longer-term loss cost trends become more clear.

Catastrophe losses and loss expenses accounted for 6.2 percentage points of the combined ratio for the first three months of 2024, compared with 10.4 percentage points for the same period a year ago.

Catastrophe losses and loss expenses accounted for 9.3 and 7.8 percentage points of the combined ratio for the second quarter and first six months of 2024, compared with 11.1 and 10.7 percentage points for the same periods a year ago.

Through 2023, the 10-year annual average for that catastrophe measure for the commercial lines segment was 5.9 percentage points, and the five-year annual average was 6.5 percentage points.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

The net effect of reserve development on prior accident years during the first three months of 2024 was favorable for commercial lines overall by $38 million, compared with $32 million for the same period in 2023.

For the first three months of 2024, our commercial property and workers' compensation lines of business were the main contributors to the commercial lines net favorable reserve development on prior accident years.

The net favorable reserve development recognized during the first three months of 2024 for our commercial lines insurance segment was mainly for accident years 2023 and 2022 and was primarily due to lower-than-anticipated loss emergence on known claims.

The net effect of reserve development on prior accident years during the second quarter and first six months of 2024 was favorable for commercial lines overall by $29 million and $67 million, compared with $59 million and $91 million for the same periods in 2023.

For the second quarter of 2024, our commercial casualty line of business included $28 million of unfavorable reserve development on prior accident years.

For the first six months of 2024, our commercial property and workers' compensation lines of business were the main contributors to the commercial lines net favorable reserve development.

The net favorable reserve development recognized during the first six months of 2024 for our commercial lines insurance segment was mainly for accident years 2023 and 2022 and was primarily due to lower-than-anticipated loss emergence on known claims.

Reserve estimates are inherently uncertain as described in our 2023 Annual Report on Form 10-K, Item 7, Critical Accounting Estimates, Property Casualty Insurance Loss and Loss Expense Reserves, Page 53.

The commercial lines underwriting expense ratio increased for the first three months of 2024, compared with the same period a year ago.

The increase was largely due to an increase in profit-sharing commissions for agencies.

The commercial lines underwriting expense ratio increased for the second quarter and first six months of 2024, compared with the same periods a year ago.

The increases were largely due to increases in profit-sharing commissions for agencies and employee-related expenses.

The ratios also included ongoing expense management efforts and higher earned premiums.

Commercial Lines Insurance Losses Incurred by Size

(Dollars in millions, net of reinsurance) Three months ended March 31,

2024 2023 % Change

(Dollars in millions, net of reinsurance) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Current accident year losses greater than $5 million $ 31 $ 28 11 $ 31 $ 58 (47)

15 unchanged sentences

Total loss ratio 57.8 % 56.5 % 1.3 57.2 % 57.2 % 0.0

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

We continue to monitor new losses and case reserve increases greater than $2 million for trends in factors such as initial reserve levels, loss cost inflation and claim settlement expenses.

Our analysis continues to indicate no unexpected concentration of these large losses and case reserve increases by risk category, geographic region, policy inception, agency or field marketing territory.

The first-quarter 2024 commercial lines total large losses incurred of $23 million, net of reinsurance, was lower than the quarterly average of $74 million during full-year 2023 and the $45 million of total large losses incurred for the first quarter of 2023.

The decrease in commercial lines large losses for the first three months of 2024 was primarily due to our commercial property line of business.

The first-quarter 2024 ratio for commercial lines total large losses was 2.1 percentage points lower than last year's first-quarter ratio.

We believe results for the three-month period largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

The second-quarter 2024 commercial lines total large losses incurred of $64 million, net of reinsurance, was lower than the quarterly average of $74 million during full-year 2023 and the $75 million of total large losses incurred for the second quarter of 2023.

The decrease in commercial lines large losses for the first six months of 2024 was primarily due to our commercial property line of business.

The second-quarter 2024 ratio for commercial lines total large losses was 1.3 percentage points lower than last year's second-quarter ratio.

We believe results for the three- and six-month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

PERSONAL LINES INSURANCE RESULTS

(Dollars in millions) Three months ended March 31,

2024 2023 % Change

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Earned premiums $ 631 $ 493 28 $ 1,219 $ 957 27

4 unchanged sentences

Current accident year catastrophe losses 137 108 27 210 248 (15)

Prior accident years before catastrophe losses (12) (6) (100)

Prior accident years before catastrophe losses 12 (4) nm — (10) 100

Prior accident years catastrophe losses (6) (11) 45 (27) (36) 25

1 unchanged sentence

Underwriting expenses 185 146 27 358 282 27

Underwriting profit (loss) $ 37 $ (57) nm

Underwriting loss $ (42) $ (36) (17) $ (5) $ (93) 95

Ratios as a percent of earned premiums:

10 unchanged sentences

Performance highlights for the personal lines segment include:

• Premiums – Personal lines earned premiums and net written premiums continued to grow during the first three months of 2024, including increased agency new business and renewal written premiums that included higher average pricing.

Cincinnati Private Client SM net written premiums included in the personal lines insurance segment results totaled approximately $330 million for the first three months of 2024, compared with $233 million for the same period of 2023.

Cincinnati Private Client net written premiums for the respective periods included excess and surplus lines homeowner policies with premiums totaling $34 million in first three months of 2024 and $19 million for the first three months of 2023.

• Premiums – Personal lines earned premiums and net written premiums continued to grow during the second quarter and first six months of 2024, including increased agency new business and renewal written premiums that included higher average pricing.

Cincinnati Private Client SM net written premiums included in the personal lines insurance segment results totaled approximately $472 million and $802 million for the second quarter and first six months of 2024, compared with $349 million and $582 million for the same periods of 2023.

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

Private Client net written premiums for the respective periods included excess and surplus lines homeowner policies with premiums totaling $51 million in the second quarter and $85 million in the first six months of 2024, compared with $32 million in the second quarter and $51 million in the first six months of 2023.

The table below analyzes the primary components of premiums.

Agency renewal written premiums increased 27% for the first three months of 2024, reflecting rate increases in selected states, a higher level of insured exposures and other factors such as higher policy retention rates and changes in policy deductibles or mix of business.

Agency renewal written premiums increased 26% for both the second quarter and first six months of 2024, reflecting rate increases in selected states, a higher level of insured exposures and other factors such as higher policy retention rates and changes in policy deductibles or mix of business.

Part of the insured exposure increase reflects our response to inflation effects that increase the cost of building materials used to repair damaged homes.

We estimate that premium rates for our personal auto line of business increased at average percentages in the low-double-digit range during the first three months of 2024.

For our homeowner line of business, we estimate that premium rates for the first three months of 2024 increased at average percentages in the high-single-digit range.

We estimate that premium rates for our personal auto line of business increased at average percentages in the low-double-digit range during the first six months of 2024.

For our homeowner line of business, we estimate that premium rates for the first six months of 2024 increased at average percentages in the high-single-digit range.

For both our personal auto and homeowner lines of business, some individual policies experienced lower or higher rate changes based on each risk's specific characteristics and enhanced pricing precision enabled by predictive models.

Personal lines new business written premiums increased $43 million or 54% for the first three months of 2024, compared with the same period of 2023, including approximately $15 million from Cincinnati Private Client

Cincinnati Financial Corporation First-Quarter 2024 10-Q

policies and $28 million from middle-market policies.

Personal lines new business written premiums increased $57 million or 54% for the second quarter of 2024, compared with the same period of 2023, including approximately $25 million from Cincinnati Private Client policies and $32 million from middle-market policies.

For the first six months of 2024, compared with the same period of 2023, personal lines new business written premiums increased $100 million or 54%, including approximately $40 million from Cincinnati Private Client policies and $60 million from middle-market policies.

We believe we maintained underwriting and pricing discipline across all personal lines markets as we expanded use of enhanced pricing precision tools.

Other written premiums include premiums ceded to reinsurers as part of our reinsurance ceded program.

For our personal lines insurance segment, an increase in 2024 ceded premiums reduced net written premiums by approximately $2 million for the first three months of 2024, compared with the same period of 2023.

For our personal lines insurance segment, an increase in 2024 ceded premiums reduced net written premiums by approximately $8 million and $10 million for the second quarter and first six months of 2024, compared with the same period of 2023.

Personal Lines Insurance Premiums

(Dollars in millions) Three months ended March 31,

2024 2023 % Change

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Agency renewal written premiums $ 681 $ 541 26 $ 1,175 $ 929 26

2 unchanged sentences

Net written premiums 819 629 30 1,414 1,077 31

Unearned premium change (7) 16 nm

Unearned premium change (188) (136) (38) (195) (120) (63)

Earned premiums $ 631 $ 493 28 $ 1,219 $ 957 27

• Combined ratio – Our personal lines combined ratio for the first quarter of 2024 improved by 18.6 percentage points, compared with first-quarter 2023, including a decrease of 15.9 points in losses from catastrophes.

The first-quarter 2024 combined ratio also included a decrease of 2.2 percentage points from current accident year loss and loss expenses before catastrophe losses, including an increase of 2.2 points for the IBNR portion and a decrease of 4.4 points for the case incurred portion.

Those current accident year ratios were measured as of March 31 of the respective years and included a decrease of 0.1 percentage points for the first three months of 2024, in the ratio for large losses of $2 million or more per claim, discussed below.

• Combined ratio – Our personal lines combined ratio for the second quarter of 2024 improved by 0.7 percentage points, compared with second-quarter 2023, despite an increase of 1.2 points in losses from catastrophes.

The second-quarter 2024 combined ratio also included a decrease of 4.0 percentage points from current accident year loss and loss expenses before catastrophe losses, including a decrease of 0.9 points for the IBNR portion and a decrease of 3.1 points for the case incurred portion.

For the first six months of 2024, the combined ratio improved by 9.4 percentage points, compared with the same period a year ago, including a decrease of 7.1 points in losses from catastrophes.

The six-month 2024 combined ratio also included a decrease of 3.2 points from current accident year loss and loss expenses before catastrophe losses, including an increase of 0.6 points in the IBNR portion and a decrease of 3.8 points for the case incurred portion.

Those current accident year ratios were measured as of June 30 of the respective years and included a decrease of 1.1 percentage points for the first six months of 2024, in the ratio for large losses of $2 million or more per claim, discussed below.

When estimating the ultimate cost of total loss and loss expenses, we consider many factors, including trends in inflation, historical paid and reported losses, large loss activity and other data or information for the industry or our company.

Elevated inflation in recent years has been a driver of higher losses and loss expenses as costs have increased significantly to repair damaged autos or homes that we insure.

Due to increased uncertainty regarding ultimate losses, we intend to remain prudent in reserving for estimated ultimate losses until longer-term loss cost trends become more clear.

Catastrophe losses and loss expenses accounted for 8.8 percentage points of the combined ratio for the first three months of 2024, compared with 24.7 points for the same period a year ago.

Due to increased uncertainty

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

regarding ultimate losses, we intend to remain prudent in reserving for estimated ultimate losses until longer-term loss cost trends become more clear.

Catastrophe losses and loss expenses accounted for 20.9 and 15.0 percentage points of the combined ratio for the second quarter and first six months of 2024, compared with 19.7 and 22.1 points for the same periods a year ago.

The 10-year annual average catastrophe loss ratio for the personal lines segment through 2023 was 11.4 percentage points, and the five-year annual average was 13.2 percentage points.

2 unchanged sentences

In addition, greater geographic diversification is expected to reduce the volatility of homeowner loss ratios attributable to weather-related catastrophe losses over time.

The net effect of reserve development on prior accident years during the first three months of 2024 was favorable for personal lines overall by $33 million, compared with $31 million of favorable development for the same period of 2023.

Our homeowner line of business was the primary contributor to the personal lines net favorable reserve development for the first three months of 2024.

The net effect of reserve development on prior accident years during the second quarter of 2024 was unfavorable by $6 million but favorable by $27 million for the first six months of 2024 for personal lines overall, compared with $15 million and $46 million of favorable development for the same periods of 2023.

Our homeowner line of business was the primary contributor to the personal lines net favorable reserve development for the first six months of 2024.

The net favorable reserve development was primarily due to lower-than-anticipated loss emergence on known claims.

The personal lines underwriting expense ratio increased for the first three months of 2024, compared with the same period a year ago.

The increase was primarily due to an increase in profit-sharing commissions for agencies.

The personal lines underwriting expense ratio decreased for the second quarter and first six months of 2024, compared with the same periods a year ago.

The decreases were primarily due to premium growth outpacing growth in various expenses.

The ratios also included ongoing expense management efforts and higher earned premiums.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Personal Lines Insurance Losses Incurred by Size

(Dollars in millions, net of reinsurance) Three months ended March 31,

2024 2023 % Change

(Dollars in millions, net of reinsurance) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Current accident year losses greater than $5 million $ — $ 15 (100) $ — $ 21 (100)

Current accident year losses $2 million - $5 million 15 7 114 26 10 160

Large loss prior accident year reserve development 10 6 67

Large loss prior accident year reserve development (7) 1 nm 3 7 (57)

Total large losses incurred 8 23 (65) 29 38 (24)

14 unchanged sentences

In the first quarter of 2024, the personal lines total large loss ratio, net of reinsurance, was 0.3 percentage points higher than last year's first quarter.

The increase in personal lines total large losses incurred for the first three months of 2024 occurred primarily for our homeowner line of business.

We believe results for the three-month period largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

In the second quarter of 2024, the personal lines total large loss ratio, net of reinsurance, was 3.3 percentage points lower than last year's second quarter.

The decrease in personal lines total large losses incurred for the first six months of 2024 occurred primarily for our homeowner line

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

The second-quarter 2024 amount of total large losses incurred helped contribute to the decrease in the six-month 2024 total large loss ratio, compared with 2023, offsetting a first-quarter 2024 ratio that was 0.3 points higher than the first quarter of 2023.

We believe results for the three- and six-month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

EXCESS AND SURPLUS LINES INSURANCE RESULTS

(Dollars in millions) Three months ended March 31,

2024 2023 % Change

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Earned premiums $ 151 $ 132 14 $ 290 $ 259 12

Fee revenues 1 — nm

Fee revenues 1 1 0 2 1 100

Total revenues 152 133 14 292 260 12

2 unchanged sentences

Current accident year catastrophe losses 3 2 50 4 4 0

Prior accident years before catastrophe losses (2) (8) 75

Prior accident years before catastrophe losses 2 (6) nm — (14) 100

Prior accident years catastrophe losses 1 1 0 — — 0

15 unchanged sentences

Performance highlights for the excess and surplus lines segment include:

• Premiums – Excess and surplus lines earned premiums and net written premiums continued to grow during the first quarter of 2024, compared with the same period a year ago, including increases in both agency renewal and new business written premiums.

For the first three months of 2024, excess and surplus lines policy renewals experienced estimated average price increases at percentages in the high-single-digit range.

• Premiums – Excess and surplus lines earned premiums and net written premiums continued to grow during the second quarter and first six months of 2024, compared with the same periods a year ago, including increases in both agency renewal and new business written premiums.

Renewal written premiums rose 19% for the second quarter and 13% for the six months ended June 30, 2024, compared with the same periods of 2023, largely due to higher renewal pricing.

For both 2024 periods, excess and surplus lines policy renewals experienced estimated average price increases at percentages in the high-single-digit range.

We measure average changes in excess and surplus lines renewal pricing as the percentage rate of change in renewal premium for the new policy period compared with the premium for the expiring policy period, assuming no change in the level of insured exposures or policy coverage between those periods for respective policies.

New business written premiums produced by agencies increased by 11% for the first three months of 2024 compared with the same period of 2023, as we continued to carefully underwrite each policy in a highly competitive market.

New business written premiums produced by agencies increased by 6% for the second quarter and 8% for the first six months of 2024 compared with the same periods of 2023, as we continued to carefully underwrite each policy in a highly competitive market.

Some of what we report as new business came from accounts that were not new to our agents.

We believe our agents' seasoned accounts tend to be priced more accurately than business that may be less familiar to them.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

Excess and Surplus Lines Insurance Premiums

(Dollars in millions) Three months ended March 31,

2024 2023 % Change

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Agency renewal written premiums $ 139 $ 117 19 $ 252 $ 223 13

4 unchanged sentences

Earned premiums $ 151 $ 132 14 $ 290 $ 259 12

• Combined ratio – The excess and surplus lines combined ratio increased by 2.0 percentage points for the first quarter of 2024, compared with the same period of 2023, with the change primarily due to lower favorable reserve development on prior accident year loss and loss expenses.

The first-quarter 2024 ratio for current accident year loss and loss expenses before catastrophe losses was 3.5 percentage points lower, compared with the 69.2% accident year 2023 ratio measured as of March 31, 2023.

Excess and surplus lines net reserve development on prior accident years, as a ratio to earned premiums, was a favorable 2.1% for the first three months of 2024, compared with favorable 6.5% for the same period of 2023.

The $3 million of net favorable reserve development recognized during the first three months of 2024 was mostly for accident year 2023 and was primarily due to lower-than-anticipated loss emergence on known claims.

• Combined ratio – The excess and surplus lines combined ratio increased by 3.2 percentage points for the second quarter and 2.6 points for the first six months of 2024, compared with the same periods of 2023.

The increases were primarily due to unfavorable reserve development on prior accident year loss and loss expenses for the three and six months ended June 30, 2024, compared with favorable reserve development for the same periods of 2023.

The second-quarter 2024 ratio for current accident year loss and loss expenses before catastrophe losses was 5.7 percentage points lower, compared with the 69.7% accident year 2023 ratio measured as of June 30, 2023, including a decrease of 13.6 points for the IBNR portion and an increase of 7.9 points for the case incurred portion.

The six-month 2024 ratio for current accident year loss and loss expenses before catastrophe losses was 4.7 percentage points lower, compared with the 69.5% accident year 2023 ratio measured as of June 30, 2023, including a decrease of 9.4 points for the IBNR portion and an increase of 4.7 points for the case incurred portion.

Excess and surplus lines net reserve development on prior accident years, as a ratio to earned premiums, was unfavorable by 2.1% for the second quarter and less than 0.1% for the first six months of 2024, compared with favorable 4.7% and 5.5% for the same periods of 2023.

The excess and surplus lines underwriting expense ratio increased for the first three months of 2024, largely due to an increase in profit-sharing commissions for agencies, compared with the same period of 2023.

The excess and surplus lines underwriting expense ratio increased for the second quarter and first six months of 2024, compared with the same periods a year ago.

The increases were largely due to increases in profit-sharing commissions for agencies and employee-related expenses.

The ratio for both periods also benefited from ongoing expense management efforts and premium growth.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

Excess and Surplus Lines Insurance Losses Incurred by Size

(Dollars in millions, net of reinsurance) Three months ended March 31,

2024 2023 % Change

Current accident year losses greater than $5 million $ — $ — nm

Current accident year losses $2 million - $5 million — — nm

Large loss prior accident year reserve development — — nm

Total large losses incurred — — nm

(Dollars in millions, net of reinsurance) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Current accident year losses greater than $5 million $ — $ — nm $ — $ — nm

Current accident year losses $2 million - $5 million 2 — nm 2 — nm

Large loss prior accident year reserve development — (1) 100 — (1) 100

Total large losses incurred 2 (1) nm 2 (1) nm

Losses incurred but not reported 17 20 (15) 47 47 0

13 unchanged sentences

In the first quarter of 2024, the excess and surplus lines total ratio for large losses, net of reinsurance, was 0.3 percentage points higher than last year's first quarter.

We believe results for the three-month period largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

In the second quarter of 2024, the excess and surplus lines total ratio for large losses, net of reinsurance, was 1.7 percentage points higher than last year's second quarter.

The second-quarter 2024 amount of total large losses incurred contributed unfavorably to the increase in the six-month 2024 total large loss ratio, compared with 2023, in addition to a first-quarter 2024 ratio that was 0.3 points higher than the first quarter of 2023.

We believe results for the three- and six month periods largely reflected normal fluctuations in loss patterns and normal variability in large case reserves for claims above $2 million.

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

LIFE INSURANCE RESULTS

(Dollars in millions) Three months ended March 31,

2024 2023 % Change

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Earned premiums $ 81 $ 80 1 $ 160 $ 157 2

7 unchanged sentences

Performance highlights for the life insurance segment include:

• Revenues – Revenues increased for the three months ended March 31, 2024, compared with the same period a year ago, driven by higher earned premiums from term life insurance, our largest life insurance product line.

Net in-force life insurance policy face amounts increased less than 1% to $82.670 billion at March 31, 2024, from $82.361 billion at year-end 2023.

Fixed annuity deposits received for the three months ended March 31, 2024, were $9 million, compared with $10 million for the same period of 2023.

• Revenues – Revenues increased for the six months ended June 30, 2024, compared with the same period a year ago, driven by higher earned premiums from term life insurance, our largest life insurance product line.

Net in-force life insurance policy face amounts increased 1% to $83.219 billion at June 30, 2024, from $82.361 billion at year-end 2023.

Fixed annuity deposits received for the three and six months ended June 30, 2024, were $10 million and $19 million, compared with $15 million and $25 million for the same periods of 2023.

Fixed annuity deposits have a minimal impact to earned premiums because deposits received are initially recorded as liabilities.

2 unchanged sentences

Life Insurance Premiums

(Dollars in millions) Three months ended March 31,

2024 2023 % Change

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Term life insurance $ 59 $ 58 2 $ 116 $ 114 2

4 unchanged sentences

We include only investment income credited to contract holders (including interest assumed in life insurance policy reserve calculations) in our life insurance segment results.

A profit of $10 million for our life insurance segment in the first three months of 2024, compared with a profit of $8 million for the same period of 2023, was primarily due to more favorable impacts from the unlocking of interest rate actuarial assumptions.

A profit of $32 million for our life insurance segment in the first six months of 2024, compared with a profit of $21 million for the same period of 2023, was primarily due to more favorable impacts from the unlocking of interest rate and other actuarial assumptions.

Life insurance segment benefits and expenses consist principally of contract holders' (policyholders') benefits incurred related to traditional life and interest-sensitive products and operating expenses incurred, net of deferred acquisition costs.

Total benefits decreased in the first three months of 2024 primarily due to more favorable impacts from the unlocking of interest rate actuarial assumptions.

Life policy and investment contract reserves decreased due to an increase in market value discount rates.

Total benefits decreased in the first six months of 2024 primarily due to more favorable impacts from the unlocking of interest rate and other actuarial assumptions.

Life policy and investment contract reserves decreased primarily due to an increase in market value discount rates.

Mortality results improved compared with the same period of 2023.

Underwriting expenses for the first three months of 2024 increased compared with the same period a year ago, largely due to higher general insurance expense levels compared to the same period of 2023.

Underwriting expenses for the first six months of 2024 increased compared with the same period a year ago, largely due to higher general insurance expense levels compared to the same period of 2023.

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

We recognize that assets under management, capital appreciation and investment income are integral to evaluating the success of the life insurance segment because of the long duration of life products.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

On a basis that includes investment income and investment gains or losses from life-insurance-related invested assets, the life insurance subsidiary reported net income of $19 million for the three months ended March 31, 2024, and March 31, 2023.

The life insurance subsidiary portfolio had net after-tax investment losses of $2 million for the three months ended March 31, 2024, compared with net after-tax investment gains of $1 million for the three months ended March 31, 2023.

On a basis that includes investment income and investment gains or losses from life-insurance-related invested assets, the life insurance subsidiary reported net income of $24 million and $43 million for the three and six months ended June 30, 2024, compared with $21 million and $40 million for the three and six months ended June 30, 2023.

The life insurance subsidiary portfolio had net after-tax investment losses of $5 million and $7 million for the three and six months ended June 30, 2024, compared with $2 million and $1 million for the three and six months ended June 30, 2023.

INVESTMENTS RESULTS

2 unchanged sentences

Investment Income

Pretax investment income grew 17% for the first quarter of 2024, compared with the same period of 2023.

Interest income increased by $29 million for the first quarter, as net purchases of fixed-maturity securities in recent quarters and higher bond yields are working to generally offset effects of the low interest rate environment of the past several years.

Although dividend rates generally are increasing more slowly, minor asset allocation adjustments in our equity portfolio and net purchases of equity securities in recent quarters helped dividend income to grow by $6 million for the three months ended March 31, 2024.

Pretax investment income grew 10% for the second quarter and 13% for the first six months of 2024, compared with the same periods of 2023.

Interest income increased by $26 million and $55 million for the three and six months ended June 30, 2024, as net purchases of fixed-maturity securities in recent quarters and higher bond yields are working to generally offset effects of the low interest rate environment of the past several years.

Dividend income decreased by $1 million in the second quarter and increased by $5 million for the first six months of 2024.

In addition to dividend rates generally increasing more slowly in recent quarters, the second-quarter 2024 dividend decrease reflected two unusual items that totaled approximately $2 million.

One was an equity holding with a June ex-dividend date in 2023 that was July 1 in 2024.

The other was a holding that reduced its dividend rate by 53% after a spin-off transaction.

Minor asset allocation adjustments in our equity portfolio in recent quarters have helped offset other factors that unfavorably affected dividend income.

Investments Results

(Dollars in millions) Three months ended March 31,

2024 2023 % Change

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Total investment income, net of expenses $ 242 $ 220 10 $ 487 $ 430 13

7 unchanged sentences

(Dollars in millions) % Yield Principal redemptions

At March 31, 2024

At June 30, 2024

Fixed-maturity pretax yield profile:

3 unchanged sentences

Average yield and total expected maturities from the remainder of 2024 through 2026 4.74 $ 3,141

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

The table below shows the average pretax yield-to-amortized cost for fixed-maturity securities acquired during the periods indicated.

The average yield for total fixed-maturity securities acquired during the first three months of 2024 was higher than the 4.60% average yield-to-amortized cost of the fixed-maturity securities portfolio at the end of 2023.

Our fixed-maturity portfolio's average yield of 4.65% for the first three months of 2024, from the investment income table below, was also higher than the 4.60% yield for the year-end 2023 fixed-maturities portfolio.

Three months ended March 31,

The average yield for total fixed-maturity securities acquired during the first six months of 2024 was higher than the 4.60% average yield-to-amortized cost of the fixed-maturity securities portfolio at the end of 2023.

Our fixed-maturity portfolio's average yield of 4.64% for the first six months of 2024, from the investment income table below, was also higher than the 4.60% yield for the year-end 2023 fixed-maturities portfolio.

Three months ended June 30, Six months ended June 30,

2024 2023 2024 2023

Average pretax yield-to-amortized cost on new fixed-maturities:

7 unchanged sentences

Average yields in this table are based on the average invested asset and cash amounts indicated in the table, using fixed-maturity securities valued at amortized cost and all other securities at fair value.

(Dollars in millions) Three months ended March 31,

2024 2023 % Change

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Investment income:

1 unchanged sentence

Dividends 69 70 (1) 141 136 4

Other 4 6 (33) 11 13 (15)

Less investment expenses 4 3 33 7 6 17

1 unchanged sentence

Less income taxes

40 35 14 81 69 17

Total investment income, after-tax $ 202 $ 185 9 $ 406 $ 361 12

10 unchanged sentences

Effective tax rate 17.9 17.4 17.9 17.4

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

Total Investment Gains and Losses

Investment gains and losses are recognized on the sale of investments, for certain changes in fair values of securities even though we continue to hold the securities or as otherwise required by GAAP.

The change in fair value for equity securities still held are included in investment gains and losses and also in net income.

The change in unrealized gains or losses for fixed-maturity securities are included as a component of other comprehensive income (OCI).

The change in fair value for equity securities still held is included in investment gains and losses and also in net income.

The change in unrealized gains or losses for fixed-maturity securities is included as a component of other comprehensive income (OCI).

Accounting requirements for the allowance for credit losses for the fixed-maturity portfolio are disclosed in our 2023 Annual Report on Form 10-K, Item 8, Note 1, Summary of Significant Accounting Policies, Page 128.

The table below summarizes total investment gains and losses, before taxes.

(Dollars in millions) Three months ended March 31,

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 2024 2023

Investment gains and losses:

7 unchanged sentences

Change in allowance for credit losses, net (16) (3) (25) (3)

Write-down of impaired securities with intent to sell — (4) — (4)

Subtotal (18) (7) (28) (7)

Other 6 (18) 26 (17)

Total investment gains and losses reported in net income 137 434 749 540

2 unchanged sentences

Total $ 62 $ 280 $ 619 $ 549

Of the 4,804 fixed-maturity securities in the portfolio, 12 securities were trading below 70% of amortized cost at March 31, 2024.

Of the 4,916 fixed-maturity securities in the portfolio, 16 securities were trading below 70% of amortized cost at June 30, 2024.

Our asset impairment committee regularly monitors the portfolio, including a quarterly review of the entire portfolio for potential credit losses.

We believe that if liquidity in the markets were to significantly deteriorate or economic conditions were to significantly weaken, we could experience declines in portfolio values and possibly increases in the allowance for credit losses or write-downs to fair value.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

In the the first six months of 2024, the allowance for credit losses increased $25 million and no fixed-maturity securities were written down to fair value due to an intention to be sold.

Fixed-maturity securities written down to fair value due to an intention to be sold were $4 million for the first six months of 2023, in addition to $3 million in changes in the allowance for credit losses.

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

We report as Other the noninvestment operations of the parent company and a noninsurance subsidiary, CFC Investment Company.

We also report as Other the underwriting results of Cincinnati Re and Cincinnati Global, including earned premiums, loss and loss expenses and underwriting expenses in the table below.

Total revenues for the first three months of 2024 for our Other operations decreased, compared with the same period of 2023, primarily due to earned premiums from Cincinnati Re and Cincinnati Global, with a decrease of $15 million and an increase of $4 million, respectively.

Cincinnati Re had $135 million of earned premiums for the first three months of 2024 and generated an underwriting profit of $29 million.

Cincinnati Global had $48 million of earned premiums for the first three months of 2024 and generated an underwriting profit of $14 million.

Total expenses for Other decreased for the first three months of 2024, primarily due to lower loss and loss expenses from Cincinnati Re and Cincinnati Global.

Total revenues for the first six months of 2024 for our Other operations increased, compared with the same period of 2023, primarily due to earned premiums from Cincinnati Re and Cincinnati Global, with increases of $1 million and $2 million, respectively.

Cincinnati Re had $273 million of earned premiums for the first six months of 2024 and generated an underwriting profit of $70 million.

Cincinnati Global had $96 million of earned premiums for the first six months of 2024 and generated an underwriting profit of $32 million.

Total expenses for Other decreased for the first six months of 2024, primarily due to lower loss and loss expenses from Cincinnati Re and Cincinnati Global.

Other income in the table below represents profit before income taxes.

For all periods shown, total other income was driven by underwriting profit from Cincinnati Re and Cincinnati Global.

(Dollars in millions) Three months ended March 31,

2024 2023 % Change

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Interest and fees on loans and leases $ 2 $ 1 100 $ 4 $ 3 33

8 unchanged sentences

Total other income $ 40 $ 21 90 $ 69 $ 41 68

We had $198 million of income tax expense for the three months ended March 31, 2024, compared with $43 million for the same period of 2023.

The effective tax rate for the three months ended March 31, 2024, was 20.8% compared with 16.0% for the same period last year.

We had $74 million and $272 million of income tax expense for the three and six months ended June 30, 2024, compared with $132 million and $175 million for the same periods of 2023.

The effective tax rate for the three and six months ended June 30, 2024, was 19.2% and 20.3% compared with 19.8% and 18.7% for the same periods last year.

The change in our effective tax rate between periods was primarily due to large changes in our net investment gains and losses included in income for the periods and changes in underwriting income and investment income.

5 unchanged sentences

Details about our effective tax rate are in this quarterly report Item 1, Note 9, Income Taxes.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2024, shareholders' equity was $12.654 billion, compared with $12.098 billion at December 31, 2023.

Total debt was $815 million at March 31, 2024, unchanged from December 31, 2023.

At March 31, 2024, cash and cash equivalents totaled $619 million, compared with $907 million at December 31, 2023.

At June 30, 2024, shareholders' equity was $12.777 billion, compared with $12.098 billion at December 31, 2023.

Total debt was $815 million at June 30, 2024, unchanged from December 31, 2023.

At June 30, 2024, cash and cash equivalents totaled $771 million, compared with $907 million at December 31, 2023.

In addition to our historically positive operating cash flow to meet the needs of operations, we have the ability to slow investing activities or sell a portion of our high-quality, liquid investment portfolio if such need arises.

2 unchanged sentences

Subsidiary Dividends

Our lead insurance subsidiary declared dividends of $145 million to the parent company in the first three months of 2024, compared with $142 million for the same period of 2023.

Our lead insurance subsidiary declared dividends of $290 million to the parent company in the first half of 2024, compared with $284 million for the same period of 2023.

For full-year 2023, our lead insurance subsidiary paid dividends totaling $526 million to the parent company.

12 unchanged sentences

The table below shows a summary of the operating cash flow for property casualty insurance (direct method):

(Dollars in millions) Three months ended March 31,

2024 2023 % Change

(Dollars in millions) Three months ended June 30, Six months ended June 30,

2024 2023 % Change 2024 2023 % Change

Premiums collected $ 2,206 $ 1,939 14 $ 4,250 $ 3,781 12

4 unchanged sentences

Cash flow from operations $ 700 $ 461 52 $ 1,064 $ 694 53

Collected premiums for property casualty insurance rose $202 million during the first three months of 2024, compared with the same period in 2023.

Loss and loss expenses paid for the 2024 perio d decreased $9 million.

Commissions and other underwriting expenses pai d increased $98 million.

Collected premiums for property casualty insurance rose $469 million during the first six months of 2024, compared with the same period in 2023.

Loss and loss expenses paid for the 2024 period decreased $23 million.

Commissions and other underwriting expenses paid increased $167 million.

We discuss our future obligations for claims payments and for underwriting expenses in our 2023 Annual Report on Form 10-K, Item 7, Obligations, Page 97.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

Capital Resources

At March 31, 2024, our debt-to-total-capital ratio was 6.1%, considerably below our 35% covenant threshold, with $790 million in long-term debt and $25 million in borrowing on our revolving short-term line of credit.

At March 31, 2024, $275 million was available for future cash management needs as part of the general provisions of the line of credit agreement, with another $300 million available as part of an accordion feature.

Based on our capital requirements at March 31, 2024, we do not anticipate a material increase in debt levels exceeding the available line of credit amount during the year.

At June 30, 2024, our debt-to-total-capital ratio was 6.0%, considerably below our 35% covenant threshold, with $790 million in long-term debt and $25 million in borrowing on our revolving short-term line of credit.

At June 30, 2024, $275 million was available for future cash management needs as part of the general provisions of the line of credit agreement, with another $300 million available as part of an accordion feature.

Based on our capital requirements at June 30, 2024, we do not anticipate a material increase in debt levels exceeding the available line of credit amount during the year.

As a result, we expect changes in our debt-to-total-capital ratio to continue to be largely a function of the contribution of unrealized investment gains or losses to shareholders' equity.

We have an unsecured letter of credit agreement that provides a portion of the capital needed to support Cincinnati Global's obligations at Lloyd's.

The amount of this unsecured letter of credit agreement was $94 million at March 31, 2024, with no amounts drawn.

The amount of this unsecured letter of credit agreement was $94 million at June 30, 2024, with no amounts drawn.

We provide details of our three long-term notes in this quarterly report Item 1, Note 3, Fair Value Measurements.

1 unchanged sentence

Four independent ratings firms award insurer financial strength ratings to our property casualty insurance companies and three firms rate our life insurance company.

Those firms made no changes to our parent company debt ratings during the first three months of 2024.

Those firms made no changes to our parent company debt ratings during the first half of 2024.

Our debt ratings are discussed in our 2023 Annual Report on Form 10-K, Item 7, Liquidity and Capital Resources, Long-Term Debt, Page 96.

10 unchanged sentences

In addition to our contractual obligations, we have other property casualty operational commitments:

• Commissions – Commissions paid were $550 million in the first three months of 2024.

• Commissions – Commissions paid were $934 million in the first half of 2024.

Commission payments generally track with written premiums, except for annual profit-sharing commissions typically paid during the first quarter of the year.

• Other underwriting expenses – Many of our underwriting expenses are not contractual obligations, but reflect the ongoing expenses of our business.

Noncommission underwriting expenses paid were $258 million in the first three months of 2024.

There were no contributions to our qualified pension plan during the first three months of 2024.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Noncommission underwriting expenses paid were $489 million in the first half of 2024.

There were no contributions to our qualified pension plan during the first half of 2024.

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

Investing Activities

4 unchanged sentences

In January 2024, the board of directors declared regular quarterly cash dividends of 81 cents per share for an indicated annual rate of $3.24 per share.

During the first three months of 2024, we used $116 million to pay cash dividends to shareholders.

During the first six months of 2024, we used $241 million to pay cash dividends to shareholders.

PROPERTY CASUALTY INSURANCE LOSS AND LOSS EXPENSE RESERVES

1 unchanged sentence

Reserving practices are discussed in our 2023 Annual Report on Form 10-K, Item 7, Property Casualty Loss and Loss Expense Obligations and Reserves, Page 98.

Total gross reserves at March 31, 2024, increased $203 million compared with December 31, 2023.

Case loss reserves decreased by $57 million, IBNR loss reserves increased by $250 million and loss expense reserves increased by $10 million.

The total gross increase was primarily due to our commercial casualty and homeowner lines of business and also Cincinnati Re and our excess and surplus lines insurance segment.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Total gross reserves at June 30, 2024, increased $519 million compared with December 31, 2023.

Case loss reserves increased by $33 million, IBNR loss reserves increased by $445 million and loss expense reserves increased by $41 million.

The total gross increase was primarily due to our commercial casualty, commercial property and homeowner lines of business and also our excess and surplus lines insurance segment.

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

Property Casualty Gross Reserves

1 unchanged sentence

Case reserves IBNR reserves Percent of total

At March 31, 2024

At June 30, 2024

Commercial lines insurance:

32 unchanged sentences

LIFE POLICY AND INVESTMENT CONTRACT RESERVES

Gross life policy and investment contract reserves were $3.013 billion at March 31, 2024, compared with $3.068 billion at year-end 2023, primarily due to an increase in market value discount rates.

Gross life policy and investment contract reserves were $2.966 billion at June 30, 2024, compared with $3.068 billion at year-end 2023, primarily due to an increase in market value discount rates.

We discussed our life insurance reserving practices in our 2023 Annual Report on Form 10-K, Item 7, Life Insurance Policyholder Obligations and Reserves, Page 104, and updated that disclosure in this quarterly report Item 1, Note 1, Accounting Policies.

Cincinnati Financial Corporation First-Quarter 2024 10-Q

Cincinnati Financial Corporation Second-Quarter 2024 10-Q

OTHER MATTERS

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis