Cincinnati Financial Corporation · NASDAQ:CINF
Cincinnati Financial — KBW Insurance Conference 2012
9 slides from Cincinnati Financial's conference presentation, Sep 5, 2012
Slide 1: Cincinnati Financial Corporation
Cincinnati Financial Corporation Steven J. Johnston, FCAS, MAAA, CFA President and Chief Executive Officer KBW Insurance Conference September 6, 2012 Civcinari NASDAQ: CINF contains forward-looking that lve risks and uncertainties. Please refer to our various filings with the U.S. Securities and Exc
Slide 2: Cincinnati Financial Profile
Cincinnati Financial Profile 25" largest U.S. property — Rated At by AM. Best + Increased shareholder dividend for 52 consecutive years — Arecord matched by only 9 other publicly traded companies + $3.2 billion 2011 premiums through select agencies in 39 states — Rank # 1 or # 2 in approximately 75%
Slide 3: Total Shareholder Return
Total Shareholder Return Cumulative return through August 29, 2012 2220 In percent 0.4 iis Ie oo 0 8 ot WCincinnati S&P S00 Index SEP P/C Index Competitive Advantages Relationships ‘Sak rane leading to making an agents’ best Agent accounts cer eresiinee Business Model ‘Superior financial strength su
Slide 4: Select Group of Agencies
Select Group of Agencies in 39 States 4,375 agency relationships with 1,717 locations (25 of June 3,201 Commercial Top Five = 43% ios, Pemnsyvaria, Indiana, North Carolin Personal Top Five = 62% Ohio, Georgia, Indiana, 1% and higher llinois, Kentucky Less than 1% Market Share Top Three Ohio at 4.7%
Slide 5: Greater Pricing Precision
Greater Pricing Precision Can Improve Profit Margins Workers’ y ing segments lower quali 10.4% 10% 0% 8.0%. a% 62% ow 5.4% 4% 2.6% 2% om ‘Year 2011 ‘YTD 06-30-12, ‘Better Middle Worse Premium Growth Initiatives New agency appointments ~ 2012 target: 130 2011 actual: 133 - Benefits realized over time
Slide 6: Steadily Increase Share of Agency Business
Steadily Increase Share of Agency Business Market share per agency reporting location by year appointed 17.7% 8.5% 43% 12% 1 year or less 25 years 6-10 years 10 years or more (Excldes excess and surpluses) Cincinnati Financial Corporation Michael J. Sewell, CPA KBW Insurance Conference September 6,
Slide 7: Combined Ratio Reflects Improving Underwriting Profitability Trends
Combined Ratio Reflects Improving Underwriting Profitability Trends « all combined ratios in the graph below oxclude the effects of catastrophe losses + doft ratios also exclude tho fects of $02 milion reinsurance romstatorgert promt 108.4% 105% 103.8% 100.6% r Om 867% say, 95% sons 89.8% 85% 20% 79
Slide 8: Property Casualty Reserves
Property Casualty Reserves Favorable development for 23 consecutive years Values shown are carried loss and loss expense reserves net of reinsurance Vertical bar represents reasonably likely range In millions Low end $3,677 High end $4,056 Carried at 60" percentile Development — 2007 2008 2009 2010
Slide 9: Increase Value for Shareholders
Increase Value for Shareholders Measured by Value Creation Ratio (VCR) Target for the period 2010-2014: Annual VCR averaging 12% to 15% 25% 19.7% 20% 6.0% 10% (23.5%) 2007 2008 2009 2010 zon yrp 612 =avcr EVER - Bond Portfolio Gains VCR - Equity Portfolio Gains “@ Total CINF Shareholder Return (TSR)