Cincinnati Financial : 2022 Annual Letter to Shareholders

2022 ANNUAL LETTER TO SHAREHOLDERS

CINCINNATI

Cincinnati Financial Corporation stands among the 25 largest property casualty insurers in the nation, based on net written premiums. A select group of independent agencies actively markets our business, home and auto insurance in 46 states. Within this select group, we also seek to become the life insurance carrier of choice and to help agents and their clients - our policyholders - by offering leasing and financing services.

Three competitive advantages distinguish your company, positioning us to build shareholder value and long-term success:

1. Commitment to our network of professional independent insurance agencies and to their continued success
2. Operating structure that supports local decision making, showcasing the strength of our field claims service, field underwriting and field support services
3. Financial strength to fulfill our promises and be a consistent market for our agents' business, supporting stability and confidence

Learn more about where we are today and where we are headed by reviewing our publications on cinfin.com/investors.

CINCINNATI

Independent agents who work with The Cincinnati Insurance Company appreciate the ease with which they can reach us. Finding value in direct access to associates from all areas of the company, we often hear, "I love that you answer the phone." However, we know it's more than just easily reaching a real person - it's reaching a person who can offer solutions and options. We've invested in talented associates who increase the capabilities we have

and the resources we provide to agents and their clients when they have unique or challenging insurance situations.

We answer the call for local independent insurance agents:

• offering a breadth of products that create flexibility in responding to the needs of business owners, from entrepreneurs just starting out to those operating multi-million dollar businesses, as well as both middle market and high net worth personal lines clients.
• connecting professional risk management associates to business leaders, large fleet operators, homeowners and collectors, helping them prevent loss or damage to their most important assets.
• responding with fast, fair and empathetic claims service, supporting our agents' reputations in their communities and making communities, businesses and families financially whole again.

TABLE OF CONTENTS

1-8 Letter to Shareholders

1. Condensed Balance Sheets and Income Statements
2. Five-YearSummary Financial Information
3. Safe Harbor Statement
4. Subsidiary Officers and Directors
5. Directors and Officers
6. Shareholder Information

2022 Annual Letter to Shareholders

Steven J. Johnston, Chairman, President and Chief Executive Officer

TO OUR SHAREHOLDERS, FRIENDS AND ASSOCIATES:

Shareholders' equity rose to more than $13 billion at year-end 2021, including increased policyholder surplus for our insurance subsidiaries. That value on a per-share basis - your book value - increased 21.9% to $81.72 in 2021, setting a new record high.

Strong cash flow from our profitable insurance operations allowed us to expand our investment portfolio and increase investment income, supporting our primary performance target of an annual value creation ratio averaging 10% to 13%. For 2021, that ratio was 25.7%, resulting in an 18.7% annual average

over the past five years.

We believe the value creation ratio is an appropriate metric to evaluate our performance because it considers our ability to increase the book value of your company and your shareholder dividends.

In January 2022, our board of directors increased the regular quarterly cash dividend 9.5% to 69-cents-per-share, setting the stage for a 62nd consecutive year of increasing shareholder dividends. We believe only seven other public companies in the U.S. can make that statement.

We balance growth and profitability, continuing to outperform the industry. A.M. Best Co., a leading insurance industry ratings agency, estimates 2021 U.S. property casualty industry results at a 99.6% combined ratio on a statutory basis with 9.2% net written premium growth.

Our property casualty net written premium growth reached 10% for the year; that pace included 12% growth to a record $897 million in new business premiums written by our agency partners. Net written premiums grew 53% for Cincinnati Re®, our reinsurance assumed operation, and 6% for Cincinnati Global

Underwriting Ltd.SM, our London-based global specialty underwriter for Cincinnati Global Syndicate 318 Underwriters at Lloyd's.

We aim for our combined ratio to consistently be within the range of 95% to 100%. When the combined ratio is below 100%, we've achieved an underwriting profit in our insurance operations. Our full-year 2021 combined ratio finished much better than that range at 88.3%. That's the 10th year in a row of underwriting profitability for your company, reflecting the diligent execution of our deliberate growth and profitability strategies.

ANSWERING THE CALL

With our vision clearly in focus - to be the best company serving independent agents - we can confidently invest in the people, resources and technology to keep moving forward, growing, evolving and delivering results that benefit our agents and policyholders, in turn creating long-term value for shareholders.

Our independent agency force is also evolving. They need efficiency, expertise and technical prowess from the carriers they work with. Independent agents expect flexible products backed by people with the expertise to artfully create an insurance program that cares for the whole of the clients they serve.

We must answer the call of these expectations - and we are. We are infusing our time-tested culture of listening to agents and building relationships with expertise to create a new era of comprehensive solutions that help our agents capitalize on opportunities.

I encourage you to learn more about our efforts by reading the special We answer the call sections of this letter, along with the Q&A with some of our key company leaders on how they are continuing to build expertise for the future in their respective areas of responsibility.

Cincinnati Financial Corporation 1

2021 Consolidated Revenues	Total Investments	Net and Non-GAAP
(in millions)	At fair value (in billions)	Operating Income
		(Per common share, diluted)

					$24.7	Net Income
					Non-GAAP
						Operating		$18.10
				$21.5		Income
			$19.7
	$17.1	$16.7					$12.10		.$6
										41
						$6.29	$7.49
						74.$2	$1.7535.$3	20.$4	.$3
									28
Commercial Lines $3,678 (38.2%)	17	18	19	20	21	17	18	19	20	21
Personal Lines $1,546 (16.1%)
					* The Definitions of Non-GAAP
Excess & Surplus Lines $400 (4.2%)
					Information and Reconciliation to
Life Insurance $303 (3.1%)						Comparable GAAP Measures are in
					our quarterly news releases, which

		Investment Income $714 (7.4%)		are available at cinfin.com/investors.
		Net Investment Gains and Losses
		and Other $2,989 (31.0%)	Consolidated revenues rose 28% in 2021, compared with 2020, primarily due to a higher amount of
Total: $9.630 billion	net investment gains and profitable growth of insurance operations. Earned premiums rose
8% and invested assets grew more than $3 billion due to higher market valuations and net purchases
			of securities that reflected positive operating cash flows. Pretax investment income grew 7% for the
			year, reaching a record high $714 million and resulting in the eighth consecutive year of increasing
			investment income.
		Book Value	Cash Dividend Declared	Value Creation Ratio

Per common share			Per common share
					Special Dividend
				$81.72	$2.50		$2.40$2.52			30.5%
			$67.04	50.$	$2.12$2.24						25.7%
								22.9%
		$60.55		00.$2
$50.29	$48.10
													14.7%
											-0.1%
17	18	19	20	21	17	18	19	20	21	17	18	19	20	21

Book value per share rose nearly 22% to $81.72 at December 31, 2021, compared with year-end 2020, a new record high, resulting in a 25.7% value creation ratio. On a five-year average basis our value creation ratio was 18.7% - ahead of our target range. The board of directors' January decision to increase the cash dividend demonstrates their confidence in the future success of our strategies and sets the stage for a 62nd consecutive year of increasing regular annual dividends.

2 2022 Annual Letter to Shareholders

QInsurance Expertise&ABlends Art and Science

When you think of the expertise needed at a leading insurance organization, you probably imagine people focused on evaluating risks and reviewing claims. Steve Spray, president of The Cincinnati Insurance Company, Teresa Cracas, chief risk officer, John Kellington, chief information officer, and Marc Schambow, chief claims officer, have infused our company with expertise in those areas, plus some that may surprise you - third-party data integrations, robotic process automation and virtual reality.

We've developed and hired associates with mastery in diverse disciplines - and the results are apparent in our track record of growth and profitability. Now, we're looking ahead to the talent, technology and products we'll need to remain an industry leader

in the next decade.Clockwise from left: Marc Schambow, chief claims officer; John Kellington, chief information officer; Steve Spray, president; and Teresa Cracas, chief risk officer

Sophisticated Pricing

The insurance industry is unique in the fact that we don't know the ultimate cost of our products until long after they are sold. To be a competitive and stable market for our agencies, we must have confidence in our underwriters and our pricing models, and our agents must be able to clearly articulate the value of our products to their clients.

A focus on profitable growth led to a 14.5-point improvement in our commercial lines business combined ratio, recording an 83.8% for the year. While the pandemic slowed growth in 2020 and early in 2021, net written premium growth returned to a healthy pace by midway through the year, reaching 8% at year-end 2021 compared with year- end 2020.

Our personal lines business continued its trend of profitability, producing a 94.0% combined ratio for the year. We've continued our steady progress toward establishing Cincinnati Insurance as a leader in serving our agencies' high net worth personal lines clients. In 2021, we grew this portion of our business by 28% compared to 2020, bringing annual premiums for higher net worth clients to $663 million.

This improvement in profitability in our personal lines business took a multifaceted approach. Over the past few years, we have: increased pricing precision on middle market new business with the introduction of The Cincinnati Casualty Company; added an excess and surplus lines homeowner product to help our agents answer the challenges many clients in California are facing due to the high frequency of wildfires in that state; opened two new states - Maine and New Mexico; and made greater use of higher minimum loss deductibles and enhanced our property inspection process to verify home condition and insurance to value for high net worth and middle market clients.

We're continuing to expand the data and analytical tools we use to sharpen our understanding of the differing geographies in which we do business. The regulatory environment can differ from state to state - as can the weather. Deepening our expertise of what makes each market unique allows us to offer the right mix of products and services to ensure our agencies' and our own success.

As we've grown in geographies outside our traditional midwestern footprint and added to lines of business less susceptible to weather-related natural catastrophes, including management liability, surety, machinery & equipment and inland marine coverages for personal lines, we've helped to smooth our results. We believe we will realize more benefit from these initiatives over time.

Cincinnati Financial Corporation 3