Condensed Financial Statements Of Parent Company

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Statements Of Parent Company

Schedule II

Cincinnati Financial Corporation (parent company only)
Condensed Balance Sheets
(Dollars in millions)	At December 31,
	2020		2019
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2020—$69; 2019—$49)	$	68	$	49
Equity securities, at fair value (cost: 2020—$1,607; 2019—$1,427)	3,687		3,069
Other invested assets	145		103
Total investments	3,900		3,221
Cash and cash equivalents	16		197
Equity in net assets of subsidiaries	7,982		7,424
Investment income receivable	8		7
Land, building and equipment, net, for company use (accumulated depreciation:    2020—$138; 2019—$129)	143		141
Income tax receivable	5		2
Other assets	53		61
Due from subsidiaries	110		107
Total assets	$	12,217	$	11,160
Liabilities
Dividends declared but unpaid	$	97	$	91
Deferred federal income tax	429		345
Long-term debt	788		788
Other liabilities	114		72
Total liabilities	1,428		1,296
Shareholders' Equity
Common stock	397		397
Paid-in capital	1,328		1,306
Retained earnings	10,085		9,257
Accumulated other comprehensive income	769		448
Treasury stock, at cost	(1,790)		(1,544)
Total shareholders' equity	10,789		9,864
Total liabilities and shareholders' equity	$	12,217	$	11,160

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8.

Schedule II (continued)

Cincinnati Financial Corporation (parent company only)
Condensed Statements of Income and Comprehensive Income
(Dollars in millions)	Years ended December 31,
	2020		2019		2018
Revenues
Investment income, net of expenses	$	81	$	75	$	65
Investment gains and losses, net	556		728		(108)
Other revenue	15		15		15
Total revenues	652		818		(28)
Expenses
Interest expense	54		52		52
Other expenses	34		37		31
Total expenses	88		89		83
Income (Loss) Before Income Taxes and Earnings of Subsidiaries	564		729		(111)
Provision (Benefit) for Income Taxes	111		146		(31)
Net Income (Loss) Before Earnings of Subsidiaries	453		583		(80)
Increase in equity of subsidiaries	763		1,414		367
Net Income	$	1,216	$	1,997	$	287
Other Comprehensive Income (Loss), Net of Taxes
Change in unrealized gain (loss) on securities	—		—		(2)
Amortization of pension actuarial gains (losses) and prior service costs	(25)		5		(3)
Other Comprehensive Income (Loss), Net of Taxes Before Other Comprehensive Income of Subsidiaries	(25)		5		(5)
Other comprehensive income (loss) of subsidiaries	346		421		(258)
Other comprehensive income (loss)	321		426		(263)
Comprehensive Income	$	1,537	$	2,423	$	24

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8.

Schedule II (continued)

Cincinnati Financial Corporation (parent company only)
Condensed Statements of Cash Flows
(Dollars in millions)	Years ended December 31,
	2020		2019		2018
Cash Flows From Operating Activities
Net income	$	1,216	$	1,997	$	287
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12		10		7
Investment gains and losses, net	(552)		(720)		114
Dividends from subsidiaries	550		625		500
Changes in:
Increase in equity of subsidiaries	(763)		(1,414)		(367)
Investment income receivable	(1)		(1)		2
Current federal income taxes	(3)		(1)		14
Deferred income tax	91		146		(35)
Other assets	—		4		(17)
Other liabilities	1		4		3
Intercompany receivable for operations	34		20		19
Net cash provided by operating activities	585		670		527
Cash Flows From Investing Activities
Sale of fixed maturities	—		3		1
Call or maturity of fixed maturities	1		21		19
Sale of equity securities	307		122		131
Purchase of fixed maturities	(23)		(39)		(17)
Purchase of equity securities	(372)		(237)		(177)
Investment in buildings and equipment	(11)		(13)		(12)
Cash paid for acquisition	—		(63)		—
Change in other invested assets, net	(42)		(67)		(11)
Net cash used in investing activities	(140)		(273)		(66)
Cash Flows From Financing Activities
Payment of cash dividends to shareholders	(375)		(355)		(336)
Shares acquired - share repurchase authorization	(261)		(67)		(125)
Proceeds from stock options exercised	7		11		9
Other	3		2		1
Net cash used in financing activities	(626)		(409)		(451)
Net change in cash and cash equivalents	(181)		(12)		10
Cash and cash equivalents at beginning of year	197		209		199
Cash and cash equivalents at end of year	$	16	$	197	$	209

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8.