WHAT WE BELIEVE

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

for the year ending December 31, 2019

S O C I A L

E N V I R O N M E N T A L

G O V E R N A N C E

WHAT WE BELIEVE

We aim to create a sustainable enterprise that delivers long-term value for our stakeholders,

including our shareholders, our associates, our independent insurance agents, our policyholders and our communities.

A MESSAGE FROM OUR CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER

While this report shares data through year-end 2019, the events of this year necessitate comment. For 70 years, a document we call The Cincinnati Ethic has guided our success. It expresses the underpinnings of our corporate culture, defining the actions and beliefs that we believe will lead to long-term success. Read The Cincinnati Ethic in its entirety on page 23 of this document. We leaned into The Ethic this year as, together, we rose to meet the challenges before us.

The first tenet of The Ethic is "We Put People First." As the disasters of 2020 unfolded - a global pandemic, catastrophic weather across our country and civil unrest - we didn't spend time pondering the right actions to take. Knowing how to serve our associates, agents, policyholders and shareholders is instinctual, woven into the culture of our organization.

L E A D E R S H I P M E S S A G E

RE ADY AND RESILIENT

4 Delivering

Outstanding Service

During the COVID-19

Pandemic

SOCIAL

6 Our Commitment to Our Associates & Communities

7 Attracting the Best Talent & Developing Our Workforce

9 Retaining & Engaging Associates

13 Supporting Our Communities

ENVIRONMENTAL

14 Our Commitment to Managing Climate Risk

15 Responding to Climate Risk

16 Managing Eco-Friendly Operations

GOVERNANCE

20 Our Commitment to Governance & Ethical Operations

21 Governing with Integrity & Operating with Purpose

23 The Cincinnati Ethic

Our associates responded with grace and courage - never wavering in their commitment to be the best company serving independent agents. We understand that policyholders place their trust in us, and after a loss impacts their family or business, we must be ready to answer the call with compassion and empathy, paying all that is due under our policy contract. Read more about how we supported associate, agents and policyholders through the pandemic on page 4.

This year also inspired self-reflection. We saw the opportunity to strengthen our diversity, equity and inclusion initiatives, forming a DEI committee of 19 African American associates. Our goal? To Listen. We listened to what they saw as our strengths and our weaknesses. Their candid feedback identified four foundational action items that could bring meaningful impact and sustainable improvement in the area of DEI for the benefit of all of our associates and our company.

Working groups were formed to focus on the four foundational action items: increasing recruiting from historically Black colleges and universities; delivering unconscious bias training companywide; creating associate resource groups; and developing opportunities for minority associates to interact with senior leadership.

I look forward to seeing these initiatives take root, making our company even stronger for current and future associates alike.

We believe in open and honest discussion of these important topics and welcome your interest.

In addition to this 2020 Environmental, Social and Governance Report, you'll find valuable information in our Sustainability Data Sheet and our Sustainability Disclosure Using SASB Standards for the Insurance Industry. All three documents are available on cinfin.com/sustainability.

FCAS, MAAA, CFA, CERA

3

DELIVERING OUTSTANDING SERVICE DURING THE COVID-19 PANDEMIC

When disaster strikes a community, Cincinnati Insurance must be ready to respond. Maintaining our operations so that we can answer the call to put families and businesses on the road to recovery is our noble purpose. When the disaster impacts our own operations, we manage the risk through robust business continuity plans. These plans allow Cincinnati associates to continue serving our independent agents and policyholders and fulfill our fiscal responsibility to investors.

PRESIDENT'S CLUB COMMUNIT Y FUND

President's Club is an annual event hosted by our executive team to build relationships with the top-performing independent agents representing Cincinnati Insurance. This year, instead of an in-person event, we wanted to recognize the commitment and dedication all Cincinnati agencies deliver to their communities by awarding each of them with $1,000 to donate to the nonprofit of their choice.

R E A D Y A N D R E S I L I E N T

READY AND

RESILIENT

  • Robust business continuity preparations
  • Quick transition to work-from-home
  • Excellent information technology infrastructure
  • Field associates working in the communities ready to serve

We were well prepared to face the COVID-19 global crisis and our operations, people, technology and financial position continue to be strong. We activated our pandemic plan, which included remote working capabilities for the majority of our 5,000 associates so that they could continue delivering the outstanding service that our company is known for.

  • Waiving vacancy clauses for buildings temporarily closed due to the pandemic
  • Providing credits on commercial policies for vehicles not being used when requested
  • Conducting virtual claims and risk management inspections where possible, and closely following CDC health guidelines when an in-person meeting is necessary

Support for Agents:

Andres O'Neil & Lowe Agency

The Bryan Municipal Utilities Good Neighbors Fund helps households who cannot make their utility payment. We're honored to support this program with a $1,000 donation, in partnership with The Cincinnati Insurance Company.

Relief for policyholders:

  • Providing personal lines auto policyholders a 15% credit per policy on their April and May 2020 premiums
  • Delivering meals, purchased from local businesses, to agencies to help support their employees as they worked to serve clients in their communities
  • Transforming training sessions to virtual sessions
  • Connecting agents for roundtable discussion on how to best serve clients during the COVID-19 outbreak
  • Using the Cincinnati Customer Care Center to temporarily assist agents as they transitioned their offices to work from home

Clark-Mortenson Agency, Inc.

@MinkNH delivered $1,000 to Dan Smith & @KeeneFamilyYMCA today! For many months, our communities & our neighbors have faced overwhelming challenges. Thanks to Cincinnati Insurance Co, we were able to help support the wonderful work & programs

  • Pausing cancellations due to nonpayment of premium and waiving late fees until June for personal lines and commercial lines policyholders
  • Waiving restrictions on policyholders performing delivery services in efforts to protect the wellbeing of their communities
  • Providing additional risk management advice to businesses that switched or considered switching to manufacturing of personal protective equipment

Help for Associates:

  • Moving more than 95% of company associates to work from home
  • Supplying location-critical associates with sanitization products and offering take-home meals from our food service vendor
  • Maintaining full pay for associates who couldn't do their jobs from home or who were needed to care for family members

the Keene Y provides our community!

RECRUITING DURING COVID
• Virtual internship program
• Video call interviews and onboarding

OUR COMMITMENT TO OUR ASSOCIATES AND COMMUNITIES

SOCIAL

WHAT WE BELIEVE

For more than 70 years, the efforts and ideas of our associates have

driven success for The Cincinnati Insurance Companies. More than 5,000 associates work for our company, processing business and serving our independent agents, policyholders, claimants and shareholders.

  • Attracting the Best Talent
  • Developing Our Workforce
  • Retaining and Engaging Associates
  • Supporting Our Communities

We are committed to providing equal opportunity for all associates, encouraging a work environment free from unlawful discrimination and harassment. This means we do not tolerate any speech or conduct that is intended to, or has the effect of, discriminating against or harassing any qualified applicant or associate because of race; creed; color; sex, including sexual orientation, gender identity and transgender status; religion; national origin; age; disability; military service; veteran status; pregnancy; AIDS/HIV or genetic information; or any other basis prohibited by law. We do not tolerate discrimination or harassment by anyone - managers, supervisors, associates or others.

We strive to attract, develop and retain individuals who have diverse backgrounds and education. Talent recruitment as well as succession planning continue to be a high priority as we develop the next generation of insurance leaders.

ATTRACTING THE BEST TALENT

Our goal is to hire job candidates with promise, matching their strengths to positions within the company and providing resources to help them meet professional and personal goals.

Our recruiting style follows our business motto that Actions Speak Louder in Person®. We encourage face-to-face interaction between entry-level job seekers and our associates at career fairs, information sessions, speaker panels or networking events. Doing so helps those interested in

a future with Cincinnati Insurance learn firsthand what it's like to work for our company and in our industry.

We use multiple channels to ensure we recruit a diverse workforce rich with ideas and knowledge:

  • Partnering with career services department, faculty and staff, and Diversity and Inclusion Offices at eight local and regional colleges and universities along with several historically Black colleges and universities to build relationships with future talent. Of our entry-level new hires in 2019, 75% graduated from these schools.

DIVERSIT Y, EQUIT Y AND INCLUSION

creating an employee resource group for African American associates, with additional associate resource groups to follow

48%

women comprise our

fostering minority

workforce

associate exposure to

senior leadership

HBCU

5%

delivering unconscious

increasing recruiting

voluntary turnover in

bias training

from historically Black

the workforce

companywide

colleges and universities

7

  • Offering a robust college internship program that attracts college students from all over the country and provides real-world work experience. In 2020, we hired a total of 126 interns from 42 different colleges and universities. During the summer of 2020, we hosted a virtual internship with over 80 interns working remotely.
  • Supplementing in-house talent with experienced professionals from a variety of disciplines, including insurance.

DEVELOPING OUR WORKFORCE

Steeped in a culture of life-long learning, we encourage associates to take advantage of training and learning opportunities to help develop specific expertise and skills. Our full-service Learning & Development department provides associates with educational opportunities via classroom events, web conferences, online classes and library resources. More than 1,600 courses and resources are available to associates on topics including industry education, compliance and leadership skills. In 2019, associates completed 101,830 courses through our Learning & Development department.

In addition to tuition reimbursement for associates who wish to pursue a bachelor's or master's degree, there are 70 self-study insurance programs and professional development courses where we cover the costs for testing and study materials upfront, which means no out-of-pocket expenses for associates. We also pay bonuses for passing exams and for the successful completion of many certification and designation programs. In 2019, we paid 916 education bonuses and we estimate that in total our associates hold more than 9,850 industry and professional designations.

Many associates choose to increase their insurance knowledge through The Institutes® - the leading provider of professional education for the risk management and property casualty insurance industry. The Institutes offers more than 25 designations and the Certified Property Casualty Underwriter is the most extensive.

Upon completion of this program, associates will have passed eight in-depth exams on topics including insurance law, accounting, risk management and ethics. We are proud to have more than 250 associates who have achieved their CPCU designation. In addition to paying the testing fee and cost of

study materials, associates receive a $90 award for each CPCU part they pass and a $935 award for attaining the designation. We also pay for new CPCU holders and their spouses to

go to a CPCU Annual Conference and sponsor some of the educational activities of Cincinnati CPCU Chapter.

Our wide array of education and training programs are supplemented by opportunities to participate in our Toastmasters

International® clubs, which help build leadership, presentation and public speaking skills, and information technology user groups that meet regularly to share information on

the latest technology and business trends.

Planning for the future

S O C I A L

STOCK OWNERSHIP

OPPORTUNITIES FOR ALL

ASSOCIATES

Holiday

Equity

Stock

Stock

Compensation

Loan

Hourly Associates

Salaried Associates

Officers

rate has been approximately 5% for the past three years. We believe this indicates overall associate satisfaction with their working environment, compensation and benefits.

Opportunities to build long-term wealth

All full-time associates are eligible for an annual cash bonus based on our ability as a company to work together to create value for shareholders. The bonus depends on multiple

OPPORTUNITIES FOR LIFE - LONG LE ARNING

1,600+

101,830

100%

courses and resources

number of courses

associates receive

available to associates

completed by individual

training

through Learning &

associates through L&D

Development department

70+

916

9,850

third-party,self-study

education bonuses

industry and

Tuition reimbursement

insurance programs

paid for successfully

professional

for bachelor's and

& professional

completed third-party

designations held

master's degree

development courses

courses

by associates

Succession planning at all levels is critical for the long-term health of our company. Specific career tracks give associates a path forward to learn the skills they need to grow in their current position and pursue other company roles. Associates seeking direction in their professional careers are encouraged to participate in our guidance and mentoring program, which includes a personality assessment, customized development curriculum and a mentor to provide support and encouragement.

RETAINING AND ENGAGING

ASSOCIATES

According to industry studies, the property casualty insurance industry is facing a highly competitive labor market resulting from business expansion and an aging workforce. We offer a base pay level for all roles that is competitive, market-based and re-evaluated on a recurring basis.

The base pay is complemented by a matching 401(k) program, annual cash bonus and stock ownership opportunities along with healthcare benefits to provide a comprehensive compensation and benefits package. In addition, we have many special programs that appeal to associates while aligning with our corporate values. Our voluntary turnover

factors, including our company's financial performance, how we are performing compared to peer companies and individual associate merit ratings. Company performance information is published on our intranet and discussed in quarterly town hall meetings for all associates.

We offer all regular, full- and part-time associates the opportunity to participate in the CFC Savings Plan, our 401(k) plan managed by Fidelity® Investments. Most associates who qualify for the CFC Savings Plan also qualify for the company matching contribution, which means that the amount an associate contributes is matched by the company dollar

for dollar, up to 6% of eligible compensation. In 2019, the company's matching contributions totaled $18.4 million. According to data from Fidelity, this exceeded amounts contributed by same size peers.

It is not a common business practice to provide stock compensation at all levels of an organization, but we firmly believe that stock ownership helps drive good decision making and encourages a long-term view by associates.

  • Holiday Stock Plan: Each year all regular, full-time associates - salaried and hourly - are awarded one share of stock for each full calendar year of service, up to 10 shares, through our Holiday Stock Plan. Associates may choose to hold or sell these shares.

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9

PRESCRIPTION DRUG USE
• Covered workforce up 20%
• Opioid prescriptions down 70%
COMPENSATION
CEO-to-medianemployee pay ratio 57.5 to 1
• Adjusted gender pay gap 1.0%, in favor of men
• Adjusted ethnic minority pay gap of 1.5%, in favor of ethnic minorities

Our commitment to helping associates pursue their health and lifestyle goals is backed up by services associates can use to make life better for themselves and their families.

S O C I A L

  • Equity Compensation: Our board of directors historically grants annual stock-based compensation to full-time, salaried associates in the form of stock options and restricted stock units. Stock options begin to vest after one year of continuous employment with our company. Restricted stock units vest three years from the date
    of the award, assuming continuous employment with the company. When restricted stock units vest, they are converted to shares of Cincinnati Financial stock and deposited in the associate's shareholder account. The associate is only responsible for paying related tax - the shares themselves are given at no cost to the associate.
  • Stock Loan: All nonofficer associates - whether full- time, part-time, salaried or hourly - can participate in our interest-free stock loan program. In this program, an associate can borrow up to $3,000 interest-free to purchase shares of Cincinnati Financial stock. The loan is repaid through payroll deductions over a period of up to three years.

Transparency in compensation practices

Our annual proxy statement provides detailed and comprehensive public disclosure about the structure and board oversight of our executive compensation program. Internally, all associates can find detailed information about salary bands for most positions on our company intranet. Since 2012, all associate bonuses have

been aligned to the same performance criteria. Targets for the annual cash bonus are readily available along with a bonus estimator calculator that allows associates to model their annual incentive bonuses.

Our CEO-to-median employee pay ratio is calculated in accordance with Securities and Exchange Commission rules. In 2019, the ratio of CEO pay compared with the pay of our median employee was 57.5 to 1. Please see our 2020 Annual Shareholder Meeting Notice and Proxy Statement, page 49, for a discussion of the CEO Pay Ratio.

We strive to offer equal pay for equal work. In 2020, we retained an independent consultant to conduct gender and ethnic minority pay equity studies examining total direct compensation, which consists of base salary, cash bonus and equity awards. Our goals were two-fold:

  • gauge success at providing equal pay for equal work
  • identify any pay gaps that cannot be explained by factors commonly contributing to pay differences, such as role, tenure, age, full-time/part-time status, location and performance rating.

Using a multivariate regression analysis, the independent studies showed that we administer pay fairly and equitably because the factors used to make compensation decisions, such as role, salary grade, tenure and performance do in fact drive compensation awarded to each associate. The studies also showed that there remains an adjusted gender pay gap of 1.0%, in favor of men, and an adjusted ethnic minority pay gap of 1.5%, in favor of ethnic minorities. Other variables not included in the regression analysis could account for some or all this difference. We commit to updating this analysis on a periodic basis.

Promoting a healthy lifestyle

We offer all full-time associates the opportunity to purchase health, prescription, vision and dental insurance. Associates enrolled in our health plan can receive a free biometric screening - either onsite at our headquarters or with their personal physician. The screening helps associates learn about their health and identify risk factors while earning

a company contribution into their Health Savings Account.

We also offer onsite prostate-specific antigen and mammography testing throughout the year to make it convenient for associates to have these important screenings.

Recognizing the grave

impact of prescription drug abuse on our society, we have enlisted the help of our healthcare partner, who covers over 80% of our associates and their families, in reducing opioid use. Efforts include enhanced care for patients who fight chronic pain and substance abuse disorders, expanded case management and targeted programs to prescribe medications that are non-addictive. Since 2012, our covered

"I appreciate that the company offers us access to these supportive programs, especially at little or no cost."

When you're ready to make changes in your life, it usually pays to do your research. Ask questions. Gather opinions. Weigh options. Ultimately, though, you must act.

That's what Lincoln* chose to do when he enrolled in two of our company's wellness offerings - the Active&Fit Direct™ Fitness program and online Omada® lifestyle management program - and made a commitment to being fully engaged.

Darissa* remembers well the struggles her mother faced as she dealt with health concerns and a dwindling bank account in the last few years of her life.

"She was so concerned about running out of money," Darissa recalled. "It made it very clear I needed to up the percentage I was putting into my 401(k) and that I needed to keep my health in check. I look at that as a financial investment."

For those reasons, Darissa said she's extremely grateful to work for a company that offers a range of programs to help its associates.

Darissa had a few tough years when life events took a toll physically and financially.

"I knew I had to chip away at the financial part of it, so I took full advantage of the company's 6% match to my

"I knew I needed to do something to help myself, but I was too embarrassed to fully share my situation with anyone I knew."

LifeMatters® - our company-provided employee assistance program - offers a variety of confidential services at no cost to associates, including six counseling sessions per issue for associates and dependent members of their family.

Ava* read about the counseling services and wanted to take advantage of them, but worried about her privacy.

She learned that these services truly are confidential -

* Names changed to protect associate privacy.

Over nine months, he lost more than 50 pounds and no longer needs high blood pressure medication.

In January 2020, we introduced Omada, an online program available at no cost to all regular Cincinnati associates covered by the CFC Health Plan or to their dependents 18 and older who are covered by the CFC Health Plan. It focuses on four key areas that impact health - food, activity, sleep and stress - with supportive tools that encourage participation and accountability.

"Experts are practically given to you. I've been fortunate to take advantage of them, including various Lunch & Learn sessions."

401(k) contribution and upped it by 1% every year that I could. Eventually I paid off all my credit card debt, then upped my 401(k) contribution by another 2%.

She met with our Fidelity representative to get extra advice and recommendations and checked out assistance offered by our Occupational Health nurses.

"The things I learned and practiced with my significant other probably saved his life," she said, noting that about a year after they adopted better eating and exercising practices, he survived a major heart problem. "Had he not been in tip-top shape, I don't think he would have made it. I am so grateful."

our company does receive information about the number of associates using the program, but not who is using resources or why.

LifeMatters gave Ava phone numbers of several counselors, and she chose one who seemed like the right fit and was located nearby.

"I was nervous about my first appointment, but my counselor turned out to be so kind and genuinely concerned. She really listened and reassured me that I wasn't the only person in the world who was struggling with a situation like mine."

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workforce has grown more than 20% while the number of opioid prescriptions has declined 70%.

The Active&Fit Direct program is provided by American Specialty Health Fitness, Inc., a subsidiary of American Specialty Health Incorporated (ASH). Active&Fit Direct is a trademark of ASH and used with permission herein.

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HEALTHY, WEALTHY & WISE
• WW
• Active&Fit Direct
• Omada
• Financial Wellness Curriculum
• LifeMatters
• Lunch & Learns

The services of our Occupational Health department are available to all associates. Along with two occupational health nurses, associates can meet in person or virtually with a certified health coach for help with a variety of issues including weight loss, stress management, smoking cessation and disease management.

Throughout the year, we provide routine nursing services and host a range of fitness and nutrition programs and contests to help associates protect their mental and physical health. We offer discounted pricing for WW®, formerly Weight Watchers, in addition to the Active&Fit Direct program through American Specialty Health Fitness Inc., one of the nation's leading fitness networks. The Active&Fit Direct program allows our associates to choose from more than 11,000 participating fitness centers nationwide for $25 a month (plus a $25 enrollment fee and applicable taxes), as well as access

to digital workout videos, unlimited lifestyle coaching and fitness tracking.

We provide a regular schedule of Lunch & Learn meetings on topics ranging from the benefits of acupuncture and essential oils to preparing for retirement and caring for aging parents. An annual health fair - held virtually in 2020 - invites vendors to share information about their services with associates.

Recognizing that our associates may need assistance with financial wellness topics, we launched an online financial wellness curriculum in 2019. Associates can access a wide variety of topics, such as tackling college debt, balancing a household budget and saving for retirement. Similar to our health fair, a financial wellness fair welcomes vendors to talk with associates about their product and service offerings, such as life insurance and investing. In addition, representatives

from Fidelity, our 401(k) provider, are available for three days each quarter to meet with our associates and answer questions. Fidelity is an active participant in our Lunch & Learn program, sharing information about planning for health care in retirement, budgeting and savings goals.

Our company's employee assistance program through LifeMatters has counselors and consultants available to help associates and their families. In addition to mental health counseling, some of the services offered include legal or financial consultation, adoption resources, child and elder care referrals and an identity theft prevention program.

Measuring employee engagement

Engaged associates are high performers who are focused, productive, enthusiastic, committed to service and passionate about working toward an organization's goals. Through two- way communication, training, goal setting and measurement, we've worked to encourage engagement within our company.

Our Touchpoint survey measures the effectiveness of our efforts and helps us plan for future initiatives by giving associates the opportunity to provide feedback.

After three years of annual surveys, we decided to survey every few years to allow more time to consider and respond to associate suggestions in significant ways. We are currently analyzing responses to a new survey conducted in the fall of 2020.

We also ask associates to complete our annual Manager Survey, which helps us evaluate a manager's performance and is used as a basis for future training and opportunities

to improve.

ASSOCIATE ENGAGEMENT

SURVEY RESULTS

Response Rate

Engagement Score

2015

72%

76%

2016

83%

87%

2017

77%

88%

2020

76%

91%

SUPPORTING OUR COMMUNITIES

Located in the northwest suburbs of Cincinnati, Ohio, we are the largest employer in the city of Fairfield and the second largest in Butler County. Approximately 65%, or 3,330, of our associates are based at our headquarters campus and support more than 1,800 field associates who live and work in our agents' local communities. We pay more than $4 million in annual local payroll taxes to the City of Fairfield, contributing to a vibrant community with high-quality resources for those who live and work in the area.

We have longstanding relationships with many nonprofit community organizations in our headquarters community.

United Way: Since 1994, our company has proudly partnered with United Way, the nation's leading community solutions provider. We consistently rank among the top 25 campaign donors to the United Way of Greater Cincinnati. In past years, associates have participated in a variety of activities over a two-week period, including a carnival day, bake sale and Make a Difference Day and contribute through pledges and the purchase of raffle tickets. In 2020, we held all raffles, contests and Make A Difference Day virtually.

ArtsWave: Greater Cincinnati's local arts agency and the nation's first and largest community campaign for the arts supports more than 100 arts and community organizations. Since 1976, our associates have supported ArtsWave by participating in various art-related contests, including a competition that includes artwork from associates and their children.

Insuring the Children: In 1998, associates from our company helped form Insuring the Children, the united effort of the Southern Ohio and Northern Kentucky insurance industry to raise awareness of child abuse and neglect.

ITC supports social agencies that provide prevention programs, emergency care and other assistance to abused and neglected children in Ohio, Indiana and Kentucky. We donate 25% of the proceeds from our paper recycling program to ITC each month.

Crayons to Computers: Since 2017, we have participated in the Corporate Crayon Challenge to benefit Crayons to Computers, a nonprofit organization that provides school supplies to 600 schools in the Cincinnati area. Over a one- week period in 2019, our associates donated over 3,500

SOCIAL

24-count boxes of Crayola® crayons. We also contribute old and unused company office supplies to the organization throughout the year.

Hoxworth Blood Center: For more than 20 years, we have hosted regular blood drives for associates at our headquarters. Hoxworth Blood Center, University of Cincinnati, is the only blood center for the greater Cincinnati area, serving 31 hospitals in 18 counties in Southwestern Ohio, Northern Kentucky and Southeastern Indiana.

Volunteer Council: An associate-led Volunteer Council organizes support for various initiatives, including the Corporate Crayon Challenge and an annual holiday food drive benefiting a local school.

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PROBABLE MAXIMUM LOSS ESTIMATES
Once-in-a-100-yearhurricane event: $300 million
Once-in-a-250-yearhurricane event: $429 million

OUR COMMITMENT TO MANAGING CLIMATE RISK

WHAT WE BELIEVE

We manage enterprise risk through formal risk management programs

overseen by an executive officer of the company. We continue to study

emerging risks, including climate change risk and the potential financial

impact on our operations, agents and policyholders. Detailed information

about our enterprise risk management program is available beginning on page 32 of our 2019 Annual Report on Form10-K.

  • Responding to Climate Risk
  • Estimating Potential Losses
  • Maintaining Eco-Friendly Operations
  • Reducing Energy Consumption and Emissions
  • Helping Policyholders and Shareholders Go Paperless
  • Conserving a Precious Natural Resource
  • Doing Green Business

RESPONDING TO CLIMATE RISK

With any risk, we aim to identify the extent of our exposure and possible actions to mitigate the negative effects at an enterprise level. For our company, risks related to climate change include regulation, extreme weather events and risk to our headquarters facility.

Changes in climate change regulation could increase our cost of doing business or restrict our ability to conduct business. Regulatory changes could result in unexpected or unintended issues related to reporting, insurance pricing, claims and coverage. Adverse implications for our business include impeding our ability to obtain adequate rates for covered risks, extending coverage beyond underwriting intent or by increasing the frequency or severity of claims. We rely on our regulatory review team and participation in the property casualty industry trade association to keep our company at the forefront of regulatory and statutory changes. In addition, we maintain strong and healthy relationships with state insurance regulators.

Climate change is likely to influence extreme weather events, including hurricanes, tornadoes, windstorms, earthquakes, hailstorms, severe winter weather and wildfires. As a result, insured losses for our property casualty insurance business could negatively affect our financial performance and condition if the level of losses exceeded our actuarially determined expectations.

ESTIMATING POTENTIAL LOSSES

The extent of losses from a catastrophe is a function of both the total amount of insured and reinsured exposure in the area affected by the event and the severity of the event. According to the catastrophe models we regularly use,

probable maximum loss estimates from a single hurricane event that combine the effects of property casualty insurance written on a direct basis by The Cincinnati Insurance Companies, the Cincinnati Re® reinsurance portfolio and risks insured by our Lloyd's of London syndicate,

Cincinnati Global Underwriting Ltd.™, include the following amounts, net of amounts recoverable through reinsurance ceded and also income taxes, and including the effects of estimated reinstatement premiums: $300 million for a once- in-a-100-year event and $429 million for a once-in-a-250-year event or 3% and 4% of 2019 GAAP Shareholders' Equity, respectively.

We continue to refine our comprehensive, enterprise-level catastrophe management program, including risks from extreme weather-related events, to identify an overall tolerance for catastrophe risk and regional guidelines that work with our underwriting and reinsurance efforts. Actions we have taken include:

  • Developing additional models to better understand risk exposures and correlations
  • Diversifying our catastrophe exposure by expanding our operations geographically
  • Obtaining reinsurance from highly rated reinsurers to mitigate underwriting risk

Approximately 65% of our workforce is based at our headquarters in Fairfield, Ohio, north of Cincinnati. To mitigate the impact of an extreme weather event resulting in property damage at our headquarters, we have implemented and continue to enhance business continuity actions, including contingency plans for operations and back-up facilities. These facilities include an information technology back-up data center and a furnished back-up office site.

E N V I R O N M E N T A L

15

ENVIRONMENTAL STEWARDSHIP
• 2020
ENERGY
STAR Main
Building
• LEED Gold Certification Business Continuity Center

Examining opportunities of climate risk

As we evaluate risks associated with climate change, we also recognize opportunities that may be available to us. Regulation changes that result in stronger building codes could change loss cost trends from weather-related events. To the extent that our underwriting and pricing models appropriately identify loss cost attributes, we could offer lower rates, benefitting policyholders while still growing our business to the benefit of our independent agents and shareholders. New product development would also provide opportunities for expanded revenues.

MAINTAINING ECO-FRIENDLY

OPERATIONS

Our campus consists of 102 acres, which includes 42 acres of green space. We follow a holistic grounds management program that addresses the impacts of our hardscape, as well as sustainable landscaping initiatives to maintain our campus. When we expand or update the campus, we have used environmentally responsible features for energy consumption and recycling of materials.

Our 48,000 square-foot business continuity center received LEED® gold certification. The LEED (Leadership in Energy

  • Environmental Design) rating system is the recognized authority for measuring "green" buildings.

Our headquarters earned its 2020 ENERGY STAR® certification for superior energy performance driven by efforts to save energy, reduce pollution

and increase efficiency. To receive this certification, commercial buildings must perform in the top 25% of similar buildings nationwide, based on key metrics such as energy performance, occupancy, hours of operation and more.

In addition, a carpooling program for associates helps ease traffic congestion and pollution near our Fairfield, Ohio, headquarters. We reimburse the associate who drives $1 per passenger each way.

REDUCING ENERGY CONSUMPTION AND EMISSIONS

The ability to manage our energy consumption with greater precision and efficiency has helped achieve reductions in electricity and natural gas. While weather patterns influence consumption for purposes of facility heating and cooling, we believe a significant portion of the improvement is due to our environmental stewardship efforts.

The facility consumption and emissions graphs on the next page show the relationship between the electricity and natural gas we consume and our growing workforce over time.

Our electricity supplier, Duke Energy, offers an incentive rebate program, which we use to help fund future energy- related projects. We also have participated in demand response programs since 2013, successfully transferring our electrical load from the power grid to company generators during the required testing period. Such transfers, upon request by our electric supplier, can provide stability to the power grid and reduce the need for expansion of utility generation facilities.

In addition to reducing energy consumption, we improved 2019 fuel efficiency (miles per gallon) of our company automobile fleet by approximately 16% since 2010, reducing emissions as more fuel-efficient vehicles are added to the fleet and less efficient vehicles are retired from service.

We added a gas-electric hybrid option to our fleet vehicle program in 2016 and currently offer the Ford Escape Hybrid and the Ford Fusion Hybrid. Drivers selecting a hybrid model receive a credit to help offset the price difference between the traditional and hybrid models.

During 2019, emissions from the fossil fuels used to heat our facilities and power vehicles in our company automobile fleet, in combination, were 5% lower than in 2010. Emissions during 2019 resulting from the generation of electricity used in our facilities declined 39% compared with 2010, which was the first year we tracked emissions from fossil fuels.

Striving to recycle, reuse and donate

Recycling of paper, cardboard, cans and bottles reflect our associates' efforts to find ways of incorporating environmental awareness into our daily operations.

We began to expand recycling options in 2019 by integrating

Associates also organized an annual community shred day in

recycling bins into the design of community kitchenettes that

conjunction with ARMA International, a nonprofit professional

are located on each floor of our headquarters office buildings.

association for records managers and administrators. The

We believe that making it more convenient to recycle will

2019 event collected 4,300 pounds of paper for recycling.

encourage even more associate participation.

In addition to these associate-led efforts, our corporate

activity in the area of

electronics recycling in 2019

IMPROVING ENERGY TRENDS

included:

• recycling 13.5 tons of

Facility Electric

Facility Natural Gas

electronic equipment and

Consumption

Consumption

one ton of printer toner

• donating 120 working

Electricity (MWh)

Intensity (FTE)

Natural Gas (CCF)

Intensity (FTE)

computer monitors to

organizations that provide

help to local schools and

communities

We focus on being

environmentally responsible

in our document printing

operations. As a nine-year

member of the Forest

Stewardship Council, we use

paper that comes from mills

with certified sustainability

programs, including

reforestation and chain of

Company Auto Fleet

Scope 1 & 2 Emissions Trend

custody requirements. In

addition, where practical and

Gasoline Consumption &

not cost prohibitive, paper

Miles per Gallon

purchases are made with 10%

Gasoline

Miles per gallon

Scope 1&2 total

Intensity (FTE)

to 30% post-consumer waste

(metric tons of CO2e)

included.

Our initiatives to reduce the

amount of paper we use

are wide-ranging and have

included eliminating old

printers, fax machines and

copiers in favor of centrally

located multi-function

devices capable of printing,

copying, scanning and faxing

documents. Our corporate

copy paper usage has declined

Since 2015, our full-time workforce has increased 14.5%, while our electric and natural gas consumption

27.7% since 2017.

has declined 17% and 7%, respectively. The fuel efficiency of our company auto fleet has improved and our

Scope 1 and 2 emissions are declining.

E N V I R O N M E N TA L

16

17

UPGRADING
PLUMBING
FIXTURES
• Filtered drinking water systems to replace all water fountains
• 2020 installations to prevent the spread of COVID-19
• Touchless faucets and towel dispensers
• Automatic flush valves

HELPING POLICYHOLDERS AND SHAREHOLDERS GO PAPERLESS

Converting policyholders to the paperless option eliminates the need to print and mail multi-page policy documents, avoiding postal mailing and related emissions. Beginning in 2017, we intensified our efforts to encourage personal lines policyholders to go paperless and receive policy information via a secure online portal or through the MyCincinnatiSM mobile app for Android™ and Apple® devices. As of year-end 2019, nearly 15% of our personal lines policyholders had gone paperless.

Along with the mobile app, we introduced a mobile wallet program in early 2018. Using Android and Apple devices, personal lines policyholders can view a statement summary and access their accounts. The mobile wallet program supplements online payment, pay-by-phone and electronic funds transfer options and has more than 8,800 subscribers.

As a public company, we publish an annual report to shareholders, which includes our Annual Report on Form

10-K and a letter to shareholders, and our Annual Shareholder Meeting Notice and Proxy Statement. We have steadily decreased the number of copies that are printed and mailed as more shareholders choose to receive these materials electronically.

Shareholders who opt for e-delivery enjoy quick access to information as well as reducing the amount of paper received and the environmental impact associated with U.S. postal mailings.

Updating our indoor office environment

We recognize that a quality indoor office environment increases productivity by keeping associates healthy and comfortable. We have used a certified green janitorial service and prohibited tobacco use on our campus for a number

of years.

CONSERVING A PRECIOUS

NATURAL RESOURCE

On an annual basis, the consumption of water that is evaporated through our condenser system cooling towers into the atmosphere is 6% to 7% higher than the amount of water we use in our building's lavatories, kitchens and

break areas. We monitor the efficiency of our cooling tower operation very closely, including the quantity of blowdown, which is the amount of calcium and other dissolved solids that remain in the recirculating water. As the amount of blowdown becomes larger, scale can form in the system and the efficiency of cooling tower operations begins to

R O N M E N TA L

REC YCLE, REUSE AND DONATE

13.5

tons of recycled electronic equipment and one ton of printer toner

4,300

120

27.7%

pounds of paper

working computer

decline in corporate

collected for recycling

monitors donated to

copy paper usage

at 2019 community

local organizations

since 2017

shred day

During 2019, we recycled:

  • 222 tons of paper
  • 36 tons of cardboard
  • 13 tons of aluminum cans and plastic bottles

In 2017, we began a multiyear, floor-by- floor renovation of the oldest of the three office buildings that comprise our headquarters. Built in 1985, floors that are renovated receive brand-new restrooms and kitchenettes as well as new ceilings. LED lighting, carpeting, wall coverings and office furniture.

Benefits of the renovation for indoor environmental quality include:

  • air diffusers
  • LEED-qualifiedoffice furniture
  • increased natural lighting

slow down. Tight control of the blowdown helps us conserve water used by the chillers, air conditioners and other equipment.

DOING GREEN BUSINESS

Our Executive Capstone™ homeowner insurance policy automatically provides some coverage for the reasonable costs to repair or replace covered, damaged property with green alternatives. A Green Upgrade coverage endorsement is also available and offers broader benefits, such as coverage for green upgrade expenses after a covered loss.

We have offered a commercial property green endorsement since 2013. Our green endorsement provides policyholders with:

  • additional coverage, at no additional charge, to cover the increased cost of repairing a building insured at replacement cost values with a current green certification
  • coverage, at an additional premium charge, to repair a building not currently green certified using green materials and building techniques to help it qualify for green certification in the future

E N V I

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19

GOVERNANCE POLICIES & PRACTICES
• Corporate Governance Guidelines
• Code of Ethics for Senior Financial Officers
• Code of Conduct for All Associates

OUR COMMITMENT TO GOVERNANCE AND ETHICAL OPERATIONS

WHAT WE BELIEVE

Our company's mission is to grow profitably and enhance the ability of local independent insurance agents to deliver quality financial protection to the people and businesses they serve. As we work to fulfill our mission, our business model is built on our determination to operate ethically and treat

people the way we would want to be treated.

  • Governing with Integrity and Operating with Purpose
  • Committed to Ethical Business Practices
  • Information Security and Data Privacy
  • The Cincinnati Ethic

GOVERNING WITH INTEGRITY AND OPERATING WITH PURPOSE

The board of directors of Cincinnati Financial Corporation includes 15 directors, 11 of whom are independent. Each director brings extensive management and leadership experience gained through service as executives and, in several cases, chief executive officers of diverse businesses. In addition, each director has civic and community involvement that mirrors our company's values emphasizing personal service, relationships and local decision making. All of our directors are elected annually at the Annual Shareholder Meeting.

As previously announced, Thomas R. Schiff will not stand for reelection at our 2021 Annual Meeting of Shareholders in accordance with our governance guideline on director age. At that time, 11 of 14 directors will be independent, or 79%.

Our primary governance policies and practices are included in our Corporate Governance Guidelines, Code of Ethics for Senior Financial Officers and Code of Conduct for all associates. These documents are available in the Governance section of cinfin.com/investors and are reviewed annually by the nominating committee of the board.

COMMITTED TO ETHICAL

BUSINESS PRACTICES

One of our company's most valuable assets is our reputation for integrity, professionalism and fairness. A formal Ethical

Business Practices Plan administered by our compliance officer ensures that associates understand the importance of conducting business activities to the highest ethical standards. The compliance officer is assisted by two multi-departmental teams - the compliance oversight board and the insurance operations compliance committee. Department managers are responsible for day-to-day

compliance activities in their business units. Throughout the year we conduct awareness campaigns designed to reinforce ethics and compliance, information security and data privacy.

BOARD OF DIREC TORS OF CINCINNATI FINANCIAL CORPOR ATION

Male Directors

Female Directors

Independent Directors

Non-Independent Directors

G O V E R N A N C E

21

OUR SECURITY
RESPONSIBILITY
• Protect policyholder, claimant and proprietary information
• Maintain a robust and mature cybersecurity program

Online compliance training courses through our Learning & Development department are mandatory for all associates. We encourage associates to report any suspected violations promptly and do not tolerate retaliation or retribution

for reports or complaints regarding misconduct. Multiple methods of communications are available to associates to share concerns or violations, including a confidential tollfree reporting hotline, 877-470-8328. We also maintain a fraud reporting link on our corporate website to allow any individual to report fraud.

INFORMATION SECURITY AND DATA PRIVACY

Cincinnati Financial Corporation and its U.S. affiliates and subsidiaries abide by and support a comprehensive information security program implemented to protect the

confidentiality, integrity and availability of our information systems. We educate associates about techniques used by cybercriminals with the use of online courses, regular phishing tests and a dedicated email address to report potential cyberthreats. The results are provided to our board's audit committee.

Highlights of our program include:

  • Adherence to Standards - We operate in a heavily regulated industry, and our cybersecurity program, which is aligned to ISO 27001, helps us comply with numerous laws, regulations, and standards. These include but are not limited to: Gramm-LeachBliley Act, NIST Cyber Security Framework, New York State Department of Financial Services Cybersecurity Regulation, California Consumer Privacy Act, General Data Protection Regulation, Health Insurance Portability and Accountability Act, and Payment Card Industry Data Security Standard.
  • Governance - Our cybersecurity program delivers regular, structured reporting and receives oversight at both the executive management and board level.
  • Incident Response - We have documented plans in place to respond to a variety of possible incidents and crises. These plans are periodically reviewed and tested.
  • Business Continuity - Our cybersecurity controls are supported by a formal business continuity program and regular timed disaster recovery testing.
  • Internal Audits - Each year, we conduct internal audits of our company's cybersecurity controls.
  • External Assessments - We regularly engage with leading external consultants to test the effectiveness of our cybersecurity program.
  • Required Training - We educate associates about techniques used by cybercriminals with the use of online courses, regular phishing tests and a dedicated email address to report potential cyberthreats.
  • Vendor Risk Assessment - It is our standard to consider the cybersecurity risks associated with each new vendor relationship.
  • Peer Comparison - We subscribe to independent third- party services that compare our cybersecurity practices to those of our peers. We regularly score at or near the top of our peer group.

A formal privacy program is designed to protect confidential information, which includes personal information about applicants, policyholders, account holders, claimants, beneficiaries, associates and other individuals. The program is coordinated by our privacy officer, who is assisted by a team that includes associates from the Information Security Office and compliance areas throughout the company, and department privacy and security coordinators.

All associates are required to complete an online course about our privacy program. A formal incident response plan outlines specific steps for associates to take if confidential information is exposed. Our privacy practices are described in our privacy notices, which are available on our corporate website, cinfin.com/privacy.

THE CINCINNATI ETHIC

Our company fosters integrity, responsibility and active engagement, well beyond any requirements, guidelines or rules. We refer to the core set of values we have practiced over the years as The Cincinnati Ethic.

We put people first. Insurance serves people, and when it serves well, profits follow. Relationships, not transactions, are our building blocks.

We live the Golden Rule every day. It guides us as we interact with each other, with agents, policyholders and claimants, investors, peer companies and suppliers. We respect and serve others. It is our privilege to listen and respond genuinely to ideas and concerns, to recognize and honor each other's talents, efforts, motives, interests and potential. Within and across departments and assignments, we team with others who complement our strengths and offset our shortcomings, expecting no less of us in return.

We invest in ourselves and one another. We welcome lifelong learning that leads to excellence in personal and professional performance. Our true leaders are those at all levels of our organization who model this excellence, passing on their knowledge, skills and good judgment to others. We allow mistakes, and we learn from them. We anticipate the need for change, setting the stage so our personal and company capabilities can evolve within a stable environment.

We make the effort to do the little things that make a big difference. This means the extra step we take to assure quality or to respond fully and promptly, the attention we pay to daily opportunities for thrift, the moment it takes to make a thoughtful comment of encouragement or instruction - these add up to the Cincinnati difference.

We believe long-term financial stability is an attainable goal. We fully accept our responsibility to be a steady, fair and responsible employer, insurance carrier and corporate citizen. This means it's our job to create long term value for those who invest their time, efforts, funds or trust in our organization. Further, we believe we owe our stakeholders open and honest discussion of our financial condition and decisions.

We know the risks we accept and work to manage them effectively. Every new relationship with an associate, agent, policyholder, claimant, investor, security issuer or supplier is a source of both risk and reward. It's up to each of us to study both sides of that equation, applying our work ethic, technical skills and best judgment to turn risk into reward. We recognize that healthy competition contributes to this process.

We think it's important to be where our customers are. The local people who represent us within their communities are the source of the responsiveness that differentiates us. Their daily actions achieve selectivity, flexibility and customization, branding us as the company for agents and policyholders who embrace value propositions and reject commoditized approaches.

Their specific knowledge, flexibility and local decision making can never be replaced by any survey, focus group, committee report, objective study or conventional wisdom. Our headquarters operation supports our field operation, not vice versa.

We pay claims. The Cincinnati Insurance Companies are in the business of helping people recover financially after losses, working to preserve their dignity in the process. We believe that we will prosper as a company by responding to claims person to person, paying what is due under each policy, preventing false claims from unfairly adding to overall premiums and building financial strength to meet future obligations.

G O V E R N A N C E

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23

FIND US ON

MAILING ADDRESS P.O. BOX 145496 Cincinnati, Ohio 45250-5496

STREET ADDRESS

6200 South Gilmore Road

Fairfield, Ohio 45014-5141

Phone: 888-242-8811 or 513-870-2000

Email: cfc_corporate@cinfin.com

Web: cinfin.com

Blog: blog.cinfin.com

© 2020 Cincinnati Financial Corporation All rights reserved.

Cincinnati Financial is pleased to share this material for the benefit of its stakeholders. This material is voluntarily provided for informational purposes only. Given the nature of the material and the methods used in gathering such material, no warranty or representation is made as to its accuracy or completeness.

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Cincinnati Financial Corporation published this content on 20 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 November 2020 17:22:03 UTC