• **Allstate (ALL)**, but primarily focused on serving customers through independent insurance agents.
• A less direct-to-consumer **Progressive (PGR)**, offering a broad range of property and casualty and life insurance primarily through independent agents.
• A traditional, diversified property and casualty insurer, quite similar to **The Travelers Companies (TRV)**.

• Commercial Lines Insurance: Provides a broad range of property, casualty, and other insurance products to businesses.
• Personal Lines Insurance: Offers homeowners, automobile, and other property and casualty insurance policies to individuals and families.
• Life Insurance: Provides various term, universal, and whole life insurance policies, along with annuities.

Cincinnati Financial (symbol: CINF) is a property and casualty insurance company that also offers life insurance and operates a property and casualty insurance agency. They distribute their products and services primarily through independent insurance agencies.

Given their business model as an insurer, Cincinnati Financial serves a highly diversified customer base rather than a few major corporate clients. Therefore, it is more appropriate to describe the categories of customers they serve:

• Small to Mid-Sized Businesses: This category represents a significant portion of Cincinnati Financial's property and casualty insurance business. They provide comprehensive commercial insurance policies, including property, liability, workers' compensation, commercial auto, and umbrella coverage, to a wide array of businesses across various industries (e.g., manufacturing, retail, services, construction, healthcare, education).
• Individuals and Families: Cincinnati Financial serves individual consumers and families by offering personal lines insurance products. These typically include auto insurance, homeowners insurance, renters insurance, and personal umbrella liability policies.
• Life Insurance and Annuity Customers: Through its life insurance subsidiary, The Cincinnati Life Insurance Company, CINF provides various life insurance products (such as term life, whole life, and universal life insurance) and annuities to individuals as part of their financial planning and wealth protection strategies.

Stephen M. Spray, President and Chief Executive Officer

Stephen M. Spray became President of Cincinnati Financial Corporation in 2022 and assumed the title of Chief Executive Officer in May 2024. He joined Cincinnati Insurance in 1991 and has held various positions of increasing responsibility throughout his tenure. Notably, he was instrumental in the formation of The Cincinnati Specialty Underwriters Insurance Company in 2007. From 2011 to 2016, he managed sales and marketing, including field underwriters and independent agency relationships. He then led the company's commercial lines operations from 2016 to 2019 and served as chief insurance officer of the property casualty subsidiaries from 2019 to 2022.

Michael J. Sewell, Chief Financial Officer, Executive Vice President and Treasurer (Principal Accounting Officer)

Michael J. Sewell has served as Chief Financial Officer, Executive Vice President and Treasurer (Principal Accounting Officer) of Cincinnati Financial Corporation since June 2011. Prior to joining Cincinnati Financial, he spent over 25 years as a Partner at Deloitte & Touche LLP, from August 1985 to May 2011.

Steven J. Johnston, Chairman of the Board

Steven J. Johnston has served as Executive Chairman of the Board since 2020. He was previously President and Chief Executive Officer of Cincinnati Financial Corporation and its U.S. subsidiaries from 2011 to May 2024. Before his time as CEO, he was the Chief Financial Officer, Senior Vice President, and Treasurer for Cincinnati Financial from 2008 to 2011. Earlier in his career, Mr. Johnston held the position of Chief Financial Officer and Treasurer at State Auto Financial Corp. and was a Director and Senior Vice President at State Automobile Mutual Insurance Co., Inc.

Steven A. Soloria, Chief Investment Officer and Executive Vice President

Steven A. Soloria was promoted to Chief Investment Officer and Executive Vice President in 2023. He has nearly 30 years of experience within Cincinnati Financial's investment department, having joined the company in 1990. Prior to his current role, he served as a Vice President at CinFin Capital Management Co., Inc. and as a Senior Vice President at The Cincinnati Insurance Co.

Thomas C. Hogan, Esq., Chief Legal Officer, Executive Vice President, and Corporate Secretary

Thomas C. Hogan was appointed Chief Legal Officer, Executive Vice President, and Corporate Secretary in May 2024. He is a veteran of Cincinnati Insurance with 31 years of service, having most recently served as Senior Vice President and Associate General Counsel since 2019.

Key Risks to Cincinnati Financial (CINF)

1. Catastrophe Losses and Weather-Related Events: Cincinnati Financial, as a property and casualty insurer, is highly susceptible to the increasing frequency and severity of catastrophe losses and weather-related natural disasters. These events can significantly impact underwriting results, leading to higher claims, increased reinsurance costs, and potential erosion of profitability. The company's exposure to such events necessitates robust risk management and prudent reserve management strategies.
2. Economic and Market Volatility: The company's performance is sensitive to broader economic and market fluctuations. This includes volatility in interest rates, which can affect the value of its investment portfolio and its ability to generate investment income. Additionally, stock market downturns can negatively impact its significant equity portfolio. Inflationary pressures can also lead to increased claim costs in auto and property repairs, affecting future profitability.
3. Regulatory and Legal Risks: Operating within a highly regulated insurance industry exposes Cincinnati Financial to risks associated with changes in insurance laws and regulations. Such changes can lead to increased compliance costs, limit the company's ability to set competitive rates, and potentially impact business operations. Furthermore, the threat of legal proceedings, including class actions and claims alleging bad faith handling of insurance claims, poses a risk to the company's financial health and reputation.

The addressable markets for Cincinnati Financial's main products and services in the U.S. are as follows:

• U.S. Property and Casualty (P&C) Insurance Market: This is Cincinnati Financial's main business. The total U.S. property and casualty insurance market size was approximately $1.05 trillion in 2024 based on direct premiums written. Another estimate valued the market at $1.0 trillion in 2024. The U.S. property and casualty insurance market was valued at $1.10 trillion in 2025 and is projected to reach $1.33 trillion by 2030, growing at a compound annual growth rate (CAGR) of 3.96%. Net premiums written for the P&C sector totaled $932.5 billion in 2024.
  • U.S. Personal Lines Insurance (a component of P&C): This segment accounted for $534.92 billion in direct premiums written in 2024.
  • U.S. Commercial Lines Insurance (a component of P&C): This segment grew to $502.35 billion in aggregated direct premiums written in 2024. The U.S. commercial insurance market size reached $294.6 billion in 2024 and is expected to reach $489.1 billion by 2033, exhibiting a CAGR of 5.20% during 2025-2033.
• U.S. Life Insurance Market: Cincinnati Financial offers life insurance and annuities. The U.S. life insurance market generated a revenue of approximately $504.4 billion in 2020 and is expected to reach around $848.1 billion by 2027. More recent estimates indicate the U.S. life insurance market size was $765.38 billion in 2023 and is projected to reach $1,476.31 billion by 2032. Another source estimated the U.S. life insurance market size at $1.93 trillion in 2024 and predicted it would be worth around $4.74 trillion by 2034. Net premiums written for the life/annuity insurance sector totaled $822.6 billion in 2024.

1. Sustained Premium Growth through Pricing and Exposure Increases: Cincinnati Financial anticipates continued growth in net written premiums across its property casualty segments. This growth is expected to be driven by a combination of price increases, strategic premium growth initiatives, and a higher level of insured exposures. For example, property casualty net written premiums grew 15% in full-year 2024 and 9% in the third quarter of 2025. Management emphasizes refining pricing precision on a policy-by-policy basis to maintain profitability despite competitive market dynamics.

2. Robust Investment Income Growth: The company expects investment income to be a significant contributor to future revenue growth. This is supported by efforts in 2024 to rebalance its investment portfolio, leading to strong cash flow from insurance operations and higher bond interest income. Investment income increased by 14% in the third quarter of 2025, with bond interest income specifically growing by 21%. Analysts also anticipate solid investment income growth to drive earnings per share outperformance in the coming year.

3. Expansion of Agency Appointments and New Business Generation: Cincinnati Financial's strategy of expanding its network of independent agency appointments is a key driver for new business generation and overall premium growth. The company reported 304 new agency appointments in full-year 2024. Additionally, new business written premiums by agencies increased by 26% in the first quarter of 2025, demonstrating the effectiveness of this expansion strategy.

4. Product Expansion and Diversification, particularly in Excess and Surplus Lines: The company is focused on expanding its product offerings, notably in excess and surplus (E&S) lines and through entities like Cincinnati Global. Cincinnati Global has seen premium growth, benefiting from product expansion in recent years. This also includes strategically shifting business, such as California homeowners policies, into the E&S market to manage risk more effectively, indicating a proactive approach to evolving market demands and risk profiles.

5. Enhanced Underwriting Discipline and Improved Combined Ratios: While not a direct top-line revenue driver, improved underwriting profitability, evidenced by better combined ratios across commercial, personal, and E&S lines, is crucial for sustainable revenue growth. This is achieved through lower catastrophe losses and ongoing risk segmentation. Strong underwriting performance ensures that the premiums generated translate into healthy profits, supporting the capacity for future growth and investment. The property casualty combined ratio improved to 88.2% in Q3 2025.

Share Repurchases

• Cincinnati Financial repurchased approximately 44,000 shares at an average price of $149.75 per share during the third quarter of 2025.
• In 2024, the company returned capital totaling $616 million to shareholders, which included funds for share repurchases and regular cash dividends.
• Treasury stock at cost increased by approximately $139 million in 2024, from $2,385 million in 2023 to $2,524 million.

Share Issuance

• The number of common shares issued by Cincinnati Financial remained constant at 198.3 million for the fiscal years 2023 and 2024.
• Similarly, the number of common shares issued remained at 198.3 million for 2020 and 2021.

Inbound Investments

• In 2020, Cincinnati Financial received a $2.5 million grant from JobsOhio, designated for the development of advanced analytic modeling and data science capabilities. [cite: 12 (from previous turn)]

Outbound Investments

• In 2024, the company rebalanced its equity portfolio by selling over $1.2 billion in equity securities to reinvest in higher-yielding bonds.

Capital Expenditures

• Cincinnati Financial makes strategic business investments aimed at improving expense management and operational efficiency. [cite: 22 (from previous turn)]
• The company focuses investments on risk selection and pricing expertise, and strengthening its enterprise risk management efforts.
• Investments are also directed towards supporting a local decision-making operating structure, field claims service, field underwriting, and field support services.