The company actively markets property casualty insurance in 46 states, with commercial and excess and surplus lines in 44 states, and personal lines in 45 states. This demonstrates a broad geographic reach and commitment to expanding its market presence.

The company emphasizes its commitment to independent insurance agencies, viewing them as key to its success. The number of property casualty agency relationships increased to 2,175, with 3,355 reporting locations, indicating continued expansion of the agency network.

The company aims to diversify growth across different lines of business and geographies, including expansion of Cincinnati Re and Cincinnati Global. This diversification is intended to reduce the variability of losses from weather-related catastrophes.

Management emphasizes innovation to accelerate operational improvement and favorably position the company for the future. This includes finding innovative ideas internally and with traditional business partners.

The company is fully committed to the independent agency channel for marketing insurance policies. They choose independent agencies that share their philosophies, offering broad, value-added services, and manage their agencies professionally.

The company's historical emphasis on small to midsized businesses remains a critical piece of its strategy. Approximately 70% of commercial in-force policies have annual premiums of $10,000 or less.

The company's largest liability, loss reserves, is based on estimates and could be inadequate to cover actual losses. This uncertainty is compounded by inflationary scenarios and regulatory changes.

The company is exposed to claims arising out of catastrophes, which can be man-made or caused by natural perils in the U.S. or worldwide. These events could result in unusually high levels of losses.

Scientists have linked global climate change to increased unpredictability, frequency, duration and severity of weather events. This could result in a disproportionate impact on insurers with certain geographic concentrations of risk.

The insurance industry is cyclical and competitive, with periods of intense competition making it difficult to attract new business, retain existing business and maintain profitability.

The company relies primarily on independent insurance agents to distribute its products. Certain events or conditions could diminish agents' desire to produce business for the company.

The appeal of the company's value proposition could be affected by an unexpected change in the commoditization of insurance products. Consumers may choose a competitor's product rather than the company's.

Technology enhances service to agencies, allowing them to more easily access systems and process business transactions. Policyholders can conveniently access policy information online.

Field claims representatives respond personally to policyholders and claimants and are equipped to handle claims from nearly anywhere. Catastrophe response teams are comprised of experienced field claims representatives.

The company's Special Investigations Unit includes former law enforcement and claims professionals whose qualifications make them well suited to gathering facts to uncover potential fraud.

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

The Special Investigations Unit contains a data analytics group and a computer forensics lab that supports field investigation efforts in various ways including assistance with link analysis, video evidence and data recovery.

Limitations on our ability to use various types of artificial intelligence (AI) in the development of pricing precision could adversely affect underwriting results.

Effective capital management is an important part of creating long-term shareholder value. The company remains committed to strategies that emphasize being a consistent, stable market for agents' business.

The company maintains a diversified investment portfolio by reviewing and applying specific parameters and tolerances. The $16.182 billion fixed-maturity portfolio is diversified and exceeds total insurance reserves.

Strong liquidity increases flexibility through all periods to maintain the cash dividend and to continue to invest in and expand insurance operations. At December 31, 2024, the company held $5.243 billion of cash and invested assets at the parent-company level.

More information is published in the Sustainability Report available on the Sustainability page of the company website, investors.cinfin.com/sustainability.

The company is committed to providing equal opportunity for all associates, encouraging a work environment free from unlawful discrimination and harassment.

The use of operational audits, strategic plans and departmental business plans, as well as our culture of open communications and fundamental respect for our Code of Conduct, continue to help us manage risks on an ongoing basis.

The company markets its standard market property casualty insurance products in 46 states, but its business is concentrated in the Midwest and Southeast, with a growing presence in California and New York.

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.

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.