Cincinnati Financial : CINF Investor Handout

INVESTOR HANDOUT

AUGUST 2023

NASDAQ: CINF

This presentation contains forward-looking statements that involve risks and uncertainties. Please refer to our various filings with the U.S. Securities and Exchange Commission for factors that could cause results to materially differ from those discussed.

The forward-looking information in this presentation has been publicly disclosed, most recently on July 27, 2023, and should be considered to be effective only as of that date.

Its inclusion in this document is not intended to be an update or reaffirmation of the forward-looking information as of any later date.

Reconciliations of non-GAAP measures are in our most recent quarterly earnings news release, which is available at cinfin.com/investors.

STRATEGY OVERVIEW

• Competitive advantages:
• • Relationships leading to agents' best accounts
  • Financial strength for stability and confidence
  • Local decision making and claims excellence
• Other distinguishing factors:
• • 62 years of shareholder dividend increases
  • Common stocks are approximately 43% of investment portfolio
  • 34 years of favorable reserve development

CUMULATIVE TOTAL RETURN*

Cincinnati Financial Corporation S&P 500 Index S&P Composite 1500 Property & Casualty Insurance Index

• $100 invested on December 31, 2017, in CINF stock or indexes shown, including reinvestment of dividends. Periods shown represent each respective fiscal year ending December 31.

LONG-TERM VALUE CREATION

• Targeting average Value Creation Ratio of 10% to 13% over the next five-year period
• • Value creation ratio (VCR) = annual rate of growth in book value plus the percentage of dividends to beginning book value
  • VCR for 2018 through 2022 averaged 11.2%
• Three performance drivers:
• • Premium growth above industry average
  • Combined ratio consistently within the range of 95% to 100%
  • Investment contribution
  • • Investment income growth
    • Compound annual total return for equity portfolio over five-year period exceeding return for S&P 500 Index

INCREASE VALUE FOR SHAREHOLDERS

MEASURED BY VALUE CREATION RATIO

Target for the next five-year period: Annual VCR averaging 10% to 13%

PERFORMANCE TARGETS & TRENDS

• 7.2% VCR for YTD 6-30-23, on an annualized basis, is withing annual target: 10% to 13% annual average over the next five-year period
• • 4.0% contribution from non-operating items, including 4.2% of net gains from the equity security portfolio
• Related performance drivers at YTD 6-30-23 compared with long-term targets:
• • 8% growth in P&C net written premiums, vs. 8% full-year 2023 projection for the industry
  • 99.2% combined ratio, within our 95% to 100% long-term target range
  • 13% investment income growth exceeded 5.1% five-year CAGR as of year-end 2022
• Growth from underwriting operations drove operating cash flow
• • $825 million in net cash flow from operating activities YTD 6-30-23, up 9%

PANDEMIC FINANCIAL EFFECTS, NOT MATERIAL SINCE 2020

• Premiums: Growth slowed for several quarters; minimal effect by mid-2021
• • Insured exposure levels were reduced for some lines of business due to economic effects
  • Growth for net written premiums slowed from 10% growth for 1Q20 and full-year 2019
• Loss and expenses: $85 million for full-year 2020 that were pandemic-related
• • $31 million for business interruption claims (Cincinnati Re or Cincinnati Global)
  • $30 million legal expenses
  • $8 million for credit losses-uncollectible premiums
  • $16 million personal auto policyholder credit
  • Changes in estimated losses and expenses in 2022 and 2021 were immaterial
• Regarding business interruption claims through July 2023, the vast majority of all of the cases decided by courts at all levels that have considered the issue have concluded that these claims are not covered by commercial property policies

SECOND-QUARTER 2023 HIGHLIGHTS

• EPS of positive $3.38 per share vs. negative $5.12 per share in 2Q22
• • Non-GAAPoperating income increased 103% to $191 million
  • $8.11 of the $8.50 EPS increase vs. 2Q22 was from the change in the fair value of equity securities still held
• Investment income rose 13%
• • Interest income was up 19%, dividend income was down 3%
• Property casualty net written premiums grew 9%
• • Higher average renewal pricing: commercial lines up near the low end of the high-single- digit percentage rate, personal lines up near the high end of the mid-single-digit percentage rate and E&S up at the high-single-digit percentage rate
• Combined ratio of 97.6%, 5.6 percentage points lower than 2Q22
• • 2Q23 decrease included 0.4 points from catastrophe losses

STRATEGIES FOR LONG-TERM SUCCESS

• Financial strength for consistent support to agencies
• • Diversified fixed-maturity portfolio, laddered maturity structure
  • • No corporate exposure exceeded 0.9% of total bond portfolio at 6-30-23, no municipal exposure exceeded 0.2%
  • 43.3% of investment portfolio in common stocks to grow book value
  • • No single security exceeded 8.8% of publicly traded common stock portfolio
  • Portfolio composition helps mitigate anticipated effects of inflation and a rise in interest rates
  • Low reliance on debt, with 6.9% debt-to-total-capital at 6-30-23
  • • Nonconvertible, noncallable debentures due in 2028 and 2034
  • Capacity for growth with premiums-to-surplus at 1.1-to-1
• Operating structure reflects agency-centered model
• • Field focus - staffed for local decision making, agency support
  • Superior claims service and broad insurance product offerings
• Profit improvement and premium growth initiatives