Cincinnati Financial Corporation · NASDAQ:CINF
Cincinnati Financial — KBW Insurance Conference 2011
9 slides from Cincinnati Financial's conference presentation, Sep 7, 2011
Slide 1: Cincinnati Financial Corporation
Cincinnati Financial Corporation Steven J. Johnston, FCAS, MAAA, CFA President and Chief Executive Officer KBW Insurance Conference September 8, 2011 NASDAQ: CINF = This presentation contains forward-looking statements that involve risks and uncertainties. Please refer to our various filings with th
Slide 2: Cincinnati Financial Profile
Cincinnati Financial Profile + 25! largest U.S. property casualty writer based on 2010 written premium — Rated A+ by A.M. Best + Increased shareholder dividend for 50 consecutive years — Arecord matched by only 9 other publicly traded companies + $3.1 billion annual premiums through select agencies
Slide 3: 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% | m 2006 2007 2008 2008 2010 EEIVCR - Investment Income & Other BEIVCR - P&C Underwriting TSVCR - Bond Portfolio Gains TSVCR - Equity Portfolio Gains Total CINF Sha
Slide 4: Cash Dividend Payout Ratio
Cash Dividend Payout Ratio Strong capital and cash flow support current dividend payout level 120% 110% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ‘Dividend Payout Ratio — Net Income Dividend Payout Ratio — Operating Income Investment Portfolio
Slide 5: Property Casualty Reserves
Property Casualty Reserves Favorable development for 22 consecutive years Values shown are carried loss and loss expense reserves net of reinsurance Vertical bar represents reasonably likely range In millions Reserve range at 12-31-10 Low end $3,571 High end $3,952 Carried at 63" percentile (64 perc
Slide 6: Cincinnati Financial Corporation: Competitive Advantages
Cincinnati Financial Corporation J.F. Scherer Executive Vice President — Business Insurance The Cincinnati Insurance Companies KBW Insurance Conference September 8, 2011 Competitive Advantages Copyright Relationships Local decision leading to —— and agents’ best cl alow accounts excellence Superior
Slide 7: Profitability Improvement Initiatives
Profitability Improvement Initiatives = Predictive modeling for improved pricing precision — In.use for: Workers’ compensation, homeowner, personal auto — Production status in 3Q11: Commercial auto, property, general liability = Technology is improving efficiency, ease of use — Agencies benefit and
Slide 8: Premium Growth Initiatives
Premium Growth Initiatives = New agency appointments — 2011 target: 120 appointments; 2011 actual: 93 appointments — Benefits realized over time as relationships mature and our share increases = Targeted marketing — Enhancing our small business strategy, including greater ease of use — Target Market
Slide 9: Select Group of Agencies
Select Group of Agencies in 39 States 4,281 agency relationships with 1,593 locations (as of June 20, 2011) Commercial Top Five = 45% Ohio, Illinois, Pennsylvania, Indiana, North Carolina Personal Top Five = 66% Ohio, Georgia, Indiana, P&C Market Share: Mlinois, Alabama 1% and higher Posckirrih ae M