Cincinnati Financial Corporation is an Ohio-based company primarily engaged in property casualty insurance, marketed through independent insurance agencies across 46 states. The company's core business model focuses on providing quality financial protection through these agents, offering a range of insurance products including standard market commercial lines, excess and surplus lines, and personal lines policies. Cincinnati Financial also provides life insurance policies and fixed annuities. The company aims to maintain market stability through financial strength, competitive products, and superior service. Cincinnati Financial has a diversified geographic presence, with its headquarters in Fairfield, Ohio.

• Employees: 5,426 (as of December 31, 2023)
• Geographic Footprint: 46 states
• Headquarters: Fairfield, Ohio
• Founded: 1968
• Number of locations/facilities: 3,116 agency reporting locations
• Revenue: $8.410 billion (FY2023)
• Market Capitalization: $14.989 billion (as of June 30, 2023)
• Key Subsidiaries/Brands: The Cincinnati Insurance Company, Cincinnati Global Underwriting Ltd., CSU Producer Resources Inc., CFC Investment Company, Cincinnati Re

• CEO: Steven J. Johnston
• CFO: Michael J. Sewell
• Board Chair: Steven J. Johnston
• Other Key Executives: Roger A. Brown (Senior Vice President and Chief Operating Officer of The Cincinnati Life Insurance Company), Teresa C. Cracas (Chief Risk Officer and Executive Vice President of The Cincinnati Insurance Company), Angela O. Delaney (Senior Vice President of The Cincinnati Insurance Company), Donald J. Doyle, Jr. (Senior Vice President of The Cincinnati Insurance Company), Sean M. Givler (Senior Vice President of The Cincinnati Insurance Company), Theresa A. Hoffer (Senior Vice President and Treasurer of The Cincinnati Insurance Company), John S. Kellington (Chief Information Officer and Executive Vice President of The Cincinnati Insurance Company), Lisa A. Love (Chief Legal Officer, Executive Vice President and Corporate Secretary of Cincinnati Financial Corporation), Marc J. Schambow (Chief Claims Officer and Senior Vice President of The Cincinnati Insurance Company), Steven A. Soloria (Chief Investment Officer and Executive Vice President of Cincinnati Financial Corporation), William H. Van Den Heuvel (Senior Vice President of The Cincinnati Insurance Company)

Key leaders have extensive experience in the insurance and financial sectors, with most holding their current positions since 2010 or later.

• Annual Revenue: $8.410 billion (FY2023)
• Net Income: $1.843 billion (FY2023)
• Market Cap: $14.989 billion (as of June 30, 2023)
• Total Assets: $32.769 billion (as of December 31, 2023)
• Number of Employees: 5,426 (as of December 31, 2023)
• Key Financial Highlights: The company experienced a significant increase in net income driven by investment gains and improved underwriting results. The company's financial strength is reflected in its strong risk-based capital ratios for its insurance subsidiaries.

Cincinnati Financial offers a variety of insurance products and services, including:

• Standard Market Commercial Lines: Coverage for businesses against liability and property damage, including commercial casualty, commercial property, commercial auto, workers' compensation, and other commercial lines.
• Personal Lines Insurance: Coverage for individuals, including personal auto, homeowner, and other personal lines such as dwelling fire, inland marine, personal umbrella liability and watercraft coverages.
• Excess and Surplus Lines Insurance: Policies for business risks with unique characteristics that are difficult to insure in the standard market.
• Life Insurance: Term life insurance, whole life insurance, universal life insurance, and worksite products, as well as deferred and immediate annuities.
• Other Services: Commercial leasing and financing services to agencies and their clients.

The company's operations are divided into five key segments:

• Commercial Lines Insurance: Contributed 42.6% of total revenues in 2023, offering a range of business insurance policies.
• Personal Lines Insurance: Contributed 20.4% of total revenues in 2023, providing coverage for individuals and their property.
• Excess and Surplus Lines Insurance: Contributed 5.4% of total revenues in 2023, covering unique business risks.
• Life Insurance: Contributed 3.1% of total revenues in 2023, providing life insurance and annuity products.
• Investments: Manages the company's investment portfolio, generating income and capital appreciation.

Cincinnati Financial's strategy is focused on maintaining strong relationships with independent insurance agencies and providing consistent, predictable service. Key strategic priorities include:

• Managing Insurance Profitability: Enhancing underwriting expertise and knowledge through technology and analytics to improve profit margins.
• Driving Premium Growth: Penetrating each market through appointed independent agencies, targeting specific market opportunities and service enhancements.
• Financial Strength: Maintaining a strong capital and surplus position to support consistent performance and withstand challenges.
• Innovation: Accelerating operational improvement through innovative ideas from internal and external sources.

The company is committed to long-term value creation through a focus on profitable growth, financial stability, and operational efficiency. Diversified growth, including expansion of Cincinnati Re and Cincinnati Global, is also a key component of their strategy.

Cincinnati Financial operates in the highly competitive U.S. property casualty insurance industry, which includes over 2,000 stock and mutual companies. The company primarily competes with standard market insurance companies that market through independent agents. Key market trends include:

• Market Position: The company has an average 4.6% share of the standard lines property casualty insurance market purchased through its reporting agency locations.
• Key Competitors: The company competes with numerous standard market insurance companies and carriers that market through captive agents or directly to consumers.
• Industry Trends: The industry is influenced by factors such as economic downturns, natural catastrophes, technological advancements, and changing consumer preferences.

• Reliance on Independent Agents: The company's business depends on its relationships with independent insurance agencies, which may choose to market competitors' products.
• Catastrophe Risks: Exposure to losses from natural or man-made catastrophes, including hurricanes, earthquakes, terrorism, and cyberattacks, which can significantly impact financial results.
• Economic Conditions: Economic downturns, inflation, and changes in interest rates can adversely affect premium revenues, underwriting profit, and investment performance.
• Regulatory Risks: Compliance with state and federal insurance regulations, including licensing, solvency, and investment rules, can impact operations and financial reporting.
• Cybersecurity Risks: Vulnerability to cyberattacks and data breaches, which could disrupt operations, lead to data loss, and result in financial and reputational damage.