The personal lines insurance segment is expanding through independent agencies to grow premiums for products and services offered to high net worth personal lines clients.

The company is pursuing diversified growth initiatives, including the expansion of Cincinnati Re and Cincinnati Global. This reduces variability of losses from weather-related catastrophes.

The company is emphasizing products and services that agencies can market to small or midsized businesses in their communities. This remains a critical piece of the company's strategy.

Technology enhancements are improving service to agencies, allowing them to more easily access systems and process business transactions. This increases efficiency and reduces costs.

The company's operating structure supports local decision making, showcasing claims excellence and allowing the company to balance growth with underwriting discipline.

The company is committed to its professional independent insurance agencies and to their continued success. This is a key competitive advantage.

The company relies primarily on independent insurance agents to distribute its products. These agents are not obligated to promote the company's products and can sell competitors' products, which may lead to a less desirable mix of business.

The company's insurance operations expose it to claims arising out of catastrophes, which can be natural or man-made. The extent of losses from a catastrophe is a function of the total amount of insured and reinsured exposure in the area affected by the event and the severity of the event.

The company's financial condition, results of operations and cash flows depend on its ability to underwrite and set rates accurately for a full spectrum of risks. If rates are not accurate, the company may not generate enough premiums to offset losses and expenses, or it may not be competitive in the marketplace.

The company is fully committed to the independent agency channel for marketing its insurance policies. For marketing standard lines insurance products, the company chooses independent agencies that share its philosophies.

The company believes that its financial strength and strong capital and surplus position, reflected in its insurer financial strength ratings, are clear, competitive advantages in the segments of the insurance marketplace that it serves.

The company competes with standard market insurance companies that market through independent insurance agents, carriers that market through captive agents, and carriers that market directly to consumers.

Technology enhances the company's service to agencies, allowing them to more easily access systems and process business transactions. Policyholders can conveniently access pertinent policy information online, helping to reduce costs for agencies and the company.

The company's commercial lines packages typically are offered on a three-year policy term for most insurance coverages, which is a key competitive advantage. By reducing annual administrative efforts, multi-year policies lower expenses for the company and for its agents.

The company's claims philosophy reflects its belief that it prospers as a company by responding to claims person to person, paying covered claims promptly, preventing false claims from unfairly adding to overall premiums and building financial strength to meet future obligations.

Management has placed an emphasis on innovation to accelerate operational improvement and to also favorably position the company for the future. The company finds innovative ideas in many places, including internally through management and other associates, with traditional business partners and in the start-up business community.

Profit margins can be improved with additional information and expanded pricing capabilities accessed with the use of technology and analytics. This includes segmentation efforts that emphasize identification and retention of insurance policies with relatively stronger pricing.

Management liability coverage can also include cyber insurance as an affirmative coverage option on various insurance policies. The company cedes all of the related cyber insurance premiums to a reinsurer, therefore transferring substantially all of that risk.

Effective capital management is an important part of creating long-term shareholder value, serving as a foundation to support other strategic areas focused on profitable growth of the insurance business. The company's capital management philosophy is intended to preserve and build capital while maintaining appropriate liquidity.

The company maintains a diversified investment portfolio by reviewing and applying specific parameters and tolerances. The $13.791 billion fixed-maturity portfolio is diversified and exceeds total insurance reserves.

Strong liquidity increases the company's flexibility through all periods to maintain its cash dividend and to continue to invest in and expand its insurance operations. At December 31, 2023, the company held $4.907 billion of cash and invested assets at the parent-company level.

We offer all regular, full- and part-time associates the opportunity to participate in the CFC Savings Plan, our 401(k) plan. We also offer all full-time associates the opportunity to purchase health, prescription, vision and dental insurance.

Our investment department operates under risk guidelines set forth in our investment policy along with oversight of the investment committee of our board of directors. These guidelines set parameters for risk tolerances governing, among other items, the allocation of the portfolio as well as security and sector concentrations.

We do not expect to have any material effects on our expenditures, earnings or competitive position as a result of compliance with any federal, state or local provisions enacted or adopted relating to the protection of the environment.

The U.S. property casualty insurance industry is a highly competitive marketplace with more than 2,000 stock and mutual companies (carriers) operating independently or in groups.

Marked or prolonged economic downturns or other events have in the past and may in the future result in a softening of the insurance market and agents or consumers choosing a competitor's product that may in turn adversely affect our premium revenues and underwriting profit.

Federal laws and regulations and the influence of international laws and regulations may have adverse effects on our business, potentially including a change from a state-based system of regulation to a system of federal regulation.