Condensed Financial Statements Of Parent Company

12 Months Ended

Dec. 31, 2021

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,
	2021		2020
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2021—$64; 2020—$69)	$	64	$	68
Equity securities, at fair value (cost: 2021—$1,660; 2020—$1,607)	4,778		3,687
Other invested assets	46		145
Total investments	4,888		3,900
Cash and cash equivalents	211		16
Equity in net assets of subsidiaries	9,292		7,982
Investment income receivable	9		8
Land, building and equipment, net, for company use (accumulated depreciation:    2021—$147; 2020—$138)	140		143
Income tax receivable	—		5
Other assets	108		53
Due from subsidiaries	106		110
Total assets	$	14,754	$	12,217
Liabilities
Dividends declared but unpaid	$	101	$	97
Deferred federal income tax	664		429
Long-term debt	789		788
Other liabilities	95		114
Total liabilities	1,649		1,428
Shareholders' Equity
Common stock	397		397
Paid-in capital	1,356		1,328
Retained earnings	12,625		10,085
Accumulated other comprehensive income	648		769
Treasury stock, at cost	(1,921)		(1,790)
Total shareholders' equity	13,105		10,789
Total liabilities and shareholders' equity	$	14,754	$	12,217

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,
	2021		2020		2019
Revenues
Investment income, net of expenses	$	91	$	81	$	75
Investment gains and losses, net	1,058		556		728
Other revenue	15		15		15
Total revenues	1,164		652		818
Expenses
Interest expense	53		54		52
Other expenses	32		34		37
Total expenses	85		88		89
Income Before Income Taxes and Earnings of Subsidiaries	1,079		564		729
Provision for Income Taxes	217		111		146
Net Income Before Earnings of Subsidiaries	862		453		583
Increase in equity of subsidiaries	2,084		763		1,414
Net Income	$	2,946	$	1,216	$	1,997
Other Comprehensive Income (Loss), Net of Taxes
Change in unrealized gain on securities	1		—		—
Amortization of pension actuarial gains (losses) and prior service costs	54		(25)		5
Other Comprehensive Income (Loss), Net of Taxes Before Other Comprehensive Income     of Subsidiaries	55		(25)		5
Other comprehensive income (loss) of subsidiaries	(176)		346		421
Other comprehensive income (loss)	(121)		321		426
Comprehensive Income	$	2,825	$	1,537	$	2,423

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,
	2021		2020		2019
Cash Flows From Operating Activities
Net income	$	2,946	$	1,216	$	1,997
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11		12		10
Investment gains and losses, net	(1,034)		(552)		(720)
Dividends from subsidiaries	598		550		625
Changes in:
Increase in equity of subsidiaries	(2,084)		(763)		(1,414)
Investment income receivable	(1)		(1)		(1)
Current federal income taxes	6		(3)		(1)
Deferred income tax	220		91		146
Other assets	5		—		4
Other liabilities	—		1		4
Intercompany receivable for operations	5		34		20
Net cash provided by operating activities	672		585		670
Cash Flows From Investing Activities
Sale of fixed maturities	4		—		3
Call or maturity of fixed maturities	18		1		21
Sale of equity securities	25		307		122
Purchase of fixed maturities	(19)		(23)		(39)
Purchase of equity securities	(82)		(372)		(237)
Investment in buildings and equipment	(6)		(11)		(13)
Cash paid for acquisition	—		—		(63)
Change in other invested assets, net	108		(42)		(67)
Net cash (used in) received from investing activities	48		(140)		(273)
Cash Flows From Financing Activities
Payment of cash dividends to shareholders	(395)		(375)		(355)
Shares acquired - share repurchase authorization	(144)		(261)		(67)
Proceeds from stock options exercised	13		7		11
Other	1		3		2
Net cash used in financing activities	(525)		(626)		(409)
Net change in cash and cash equivalents	195		(181)		(12)
Cash and cash equivalents at beginning of year	16		197		209
Cash and cash equivalents at end of year	$	211	$	16	$	197

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