Condensed Financial Statements Of Parent Company

12 Months Ended

Dec. 31, 2022

Schedule II


Cincinnati Financial Corporation (parent company only)
Condensed Balance Sheets
(Dollars in millions)	At December 31,
	2022		2021
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2022—$91; 2021—$64)	$	78	$	64
Equity securities, at fair value (cost: 2022—$1,734; 2021—$1,660)	3,978		4,778
Other invested assets	53		46
Total investments	4,109		4,888
Cash and cash equivalents	121		211
Equity in net assets of subsidiaries	7,396		9,292
Investment income receivable	11		9
Land, building and equipment, net, for company use (accumulated depreciation: 2022—$156; 2021—$147)	136		140
Income tax receivable	5		—
Other assets	116		108
Due from subsidiaries	102		106
Total assets	$	11,996	$	14,754
Liabilities
Dividends declared but unpaid	$	108	$	101
Deferred federal income tax	480		664
Long-term debt	789		789
Other liabilities	88		95
Total liabilities	1,465		1,649
Shareholders' Equity
Common stock	397		397
Paid-in capital	1,392		1,356
Retained earnings	11,702		12,625
Accumulated other comprehensive income	(636)		648
Treasury stock, at cost	(2,324)		(1,921)
Total shareholders' equity	10,531		13,105
Total liabilities and shareholders' equity	$	11,996	$	14,754

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,
	2022		2021		2020
Revenues
Investment income, net of expenses	$	101	$	91	$	81
Investment gains and losses, net	(790)		1,058		556
Other revenue	15		15		15
Total revenues	(674)		1,164		652
Expenses
Interest expense	53		53		54
Other expenses	33		32		34
Total expenses	86		85		88
Income (Loss) Before Income Taxes and Earnings of Subsidiaries	(760)		1,079		564
Provision (Benefit) for Income Taxes	(161)		217		111
Net Income (Loss) Before Earnings of Subsidiaries	(599)		862		453
Increase in equity of subsidiaries	113		2,084		763
Net Income (Loss)	$	(486)	$	2,946	$	1,216
Other Comprehensive Income (Loss), Net of Taxes
Change in unrealized gain on securities	(10)		1		—
Amortization of pension actuarial gains (losses) and prior service costs	7		54		(25)
Other Comprehensive Income (Loss), Net of Taxes Before Other Comprehensive Income (Loss) of Subsidiaries	(3)		55		(25)
Other comprehensive income (loss) of subsidiaries	(1,281)		(176)		346
Other comprehensive income (loss)	(1,284)		(121)		321
Comprehensive Income (Loss)	$	(1,770)	$	2,825	$	1,537

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,
	2022		2021		2020
Cash Flows From Operating Activities
Net income	$	(486)	$	2,946	$	1,216
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization and other	9		10		11
Investment gains and losses, net	792		(1,034)		(552)
Dividends from subsidiaries	729		598		550
Changes in:
Increase in equity of subsidiaries	(113)		(2,084)		(763)
Current federal income taxes	(6)		6		(3)
Deferred income tax	(183)		220		91
Other assets	(7)		5		—
Other liabilities	1		—		1
Intercompany receivable for operations	28		5		34
Net cash provided by operating activities	764		672		585

Cash Flows From Investing Activities
Sale, call or maturity of fixed maturities	1		22		1
Sale of equity securities	192		25		307
Purchase of fixed maturities	(30)		(19)		(23)
Purchase of equity securities	(187)		(82)		(372)
Investment in buildings and equipment	(4)		(6)		(11)

Change in other invested assets, net	(4)		108		(42)

Net cash (used in) received from investing activities	(32)		48		(140)

Cash Flows From Financing Activities

Payment of cash dividends to shareholders	(423)		(395)		(375)
Shares acquired - share repurchase authorization	(410)		(144)		(261)
Proceeds from stock options exercised	10		13		7

Other	1		1		3
Net cash used in financing activities	(822)		(525)		(626)
Net change in cash and cash equivalents	(90)		195		(181)
Cash and cash equivalents at beginning of year	211		16		197
Cash and cash equivalents at end of year	$	121	$	211	$	16

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