Cincinnati Financial Corporation · NASDAQ:CINF
Cincinnati Financial — KBW Insurance Conference 2014
9 slides from Cincinnati Financial's conference presentation, Sep 3, 2014
Slide 1: Cincinnati Financial Corporation - KBW Insurance Conference
AS CINCINNATI FINANCIAL CORPORATION Steven J. Johnston, FCAS, MAAA, CFA, CERA President and Chief Executive Officer KBW Insurance Conference September 4, 2014 Nasdaq: CINF * This presentation contains forward-looking statements that involve risks and uncertainties. Please refer to our various filing
Slide 2: Cincinnati Financial Profile
Cincinnati Financial Profile + Among the 25 largest U.S. property casualty insurers — Rated A+ Superior by AM. Best + Increased shareholder dividend for 53 consecutive years — Arecord matched by only 9 other publicly traded companies + $3.9 billion 2013 premiums through select agencies in 39 states
Slide 3: Value Creation
Value Creation Investment Premium income growth above growth industry and equity average portfolio total return Combined ratio consistently within 95% to 100% Three performance drivers Strategic Competitive Advantages “ 2 Forbes| 2014 - Ethical Behavior. Freee COMPANIES Copyright © 2014 Cincinnati F
Slide 4: Pricing Precision and Segmentation
Pricing Precision and Segmentation + Potential effects on underwriting performance — Better results already demonstrated, always room to improve — Policy-by-policy, granular decisions that drive aggregate profit as more profitable policies are obtained and renewed — Meaningful agency discussions abo
Slide 5: Driving Premium Growth
Driving Premium Growth * New agency appointments, expanding marketing and sei capabilities + On pace to reach $6 billion target in 2015 ure Actual ‘Dc wren ormiums dn ln owe ‘Nat ten FegaTwunes0 2014 Prelected Year DOTS Srowth “tamans nied Premums Needed lite life 5% 4% $03 8S 12% 25% oes 02 Persona
Slide 6: Combined Ratio Reflects Improving Underwriting Profitability Trends
AAS CINCINNATI FINANCIAL CORPORATION Michael J. Sewell, CPA| Chief Financial Officer, Senior Vice President and Treasurer} KBW Insurance Conference} September 4, 2014 Combined Ratio Reflects Improving Underwriting Profitability Trends Combined ratio before catastrophe losses Year 2011 Year2012 Year2
Slide 7: Historic Averages Add Perspective to Weather Effects on Combined Ratio
Historic Averages Add Perspective to Weather Effects on Combined Ratio Non-cat weather loss ratio Catastrophe loss ratio 127% 6.1% 52% 53% Ratios of incurred losses and loss expenses to earned premiums — Five year averages at year-end 2013, Invest for Income and Capital Appreciation Portfolio mix as
Slide 8: Accident Year Trends
Accident Year Trends Profitable 2013 Underwriting Was Similar to a Decade Ago Consolidated Property Casualty ~ Combined Ratios Before Catastrophe Losses ‘Current Accident Year Ratios Are Measured at 12 months 104% 10% o% 1056 2013 2003-06 Average 2008-12 Average [SaCurrent accident year mmmPrior acc
Slide 9: Why Invest in Cincinnati Financial
Why Invest in Cincinnati Financial Potential for stock price appreciation based on long-term potential growth of earnings and book value Clear strategy for profitable growth, proven record of execution + History of increasing dividend, attractive current yield Solid capital position, high-quality ba