Condensed Financial Statements Of Parent Company

12 Months Ended

Dec. 31, 2023

Schedule II


Cincinnati Financial Corporation (parent company only)
Condensed Balance Sheets
(Dollars in millions)	At December 31,
	2023		2022
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2023—$184; 2022—$91)	$	176	$	78
Equity securities, at fair value (cost: 2023—$1,645; 2022—$1,734)	4,544		3,978
Other invested assets	49		53
Total investments	4,769		4,109
Cash and cash equivalents	138		121
Equity in net assets of subsidiaries	8,481		7,427
Investment income receivable	13		11
Land, building and equipment, net, for company use (accumulated depreciation: 2023—$164; 2022—$156)	138		136
Income tax receivable	4		5
Other assets	150		116
Due from subsidiaries	40		102
Total assets	$	13,733	$	12,027
Liabilities
Dividends declared but unpaid	$	118	$	108
Deferred federal income tax	624		480
Long-term debt	789		789
Other liabilities	104		88
Total liabilities	1,635		1,465
Shareholders' Equity
Common stock	397		397
Paid-in capital	1,437		1,392
Retained earnings	13,084		11,711
Accumulated other comprehensive income	(435)		(614)
Treasury stock, at cost	(2,385)		(2,324)
Total shareholders' equity	12,098		10,562
Total liabilities and shareholders' equity	$	13,733	$	12,027

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,
	2023		2022		2021
Revenues
Investment income, net of expenses	$	109	$	101	$	91
Investment gains and losses, net	644		(790)		1,058
Other revenue	15		15		15
Total revenues	768		(674)		1,164
Expenses
Interest expense	52		53		53
Other expenses	38		33		32
Total expenses	90		86		85
Income (Loss) Before Income Taxes and Earnings of Subsidiaries	678		(760)		1,079
Provision (Benefit) for Income Taxes	134		(161)		217
Net Income (Loss) Before Earnings of Subsidiaries	544		(599)		862
Increase in equity of subsidiaries	1,299		112		2,106
Net Income (Loss)	$	1,843	$	(487)	$	2,968
Other Comprehensive Income (Loss), Net of Taxes
Change in unrealized gain on securities	4		(10)		1
Amortization of pension actuarial gains (losses) and prior service costs	(5)		7		54
Other Comprehensive Income (Loss), Net of Taxes Before Other Comprehensive Income (Loss) of Subsidiaries	(1)		(3)		55
Other comprehensive income (loss) of subsidiaries	180		(908)		(93)
Other comprehensive income (loss)	179		(911)		(38)
Comprehensive Income (Loss)	$	2,022	$	(1,398)	$	2,930

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,
	2023		2022		2021
Cash Flows From Operating Activities
Net income	$	1,843	$	(487)	$	2,968
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization and other	10		9		10
Investment gains and losses, net	(644)		792		(1,034)
Dividends from subsidiaries	426		729		598
Changes in:
Increase in equity of subsidiaries	(1,299)		(112)		(2,106)
Current federal income taxes	1		(6)		6
Deferred income tax	144		(183)		220
Other assets	(12)		(7)		5
Other liabilities	3		1		—
Intercompany receivable for operations	95		28		5
Net cash provided by operating activities	567		764		672

Cash Flows From Investing Activities
Sale, call or maturity of fixed maturities	17		1		22
Sale of equity securities	138		192		25
Purchase of fixed maturities	(119)		(30)		(19)
Purchase of equity securities	(65)		(187)		(82)
Investment in buildings and equipment	(10)		(4)		(6)

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

Net cash (used in) received from investing activities	(39)		(32)		48

Cash Flows From Financing Activities

Payment of cash dividends to shareholders	(454)		(423)		(395)
Shares acquired - share repurchase authorization	(67)		(410)		(144)
Proceeds from stock options exercised	9		10		13

Other	1		1		1
Net cash used in financing activities	(511)		(822)		(525)
Net change in cash and cash equivalents	17		(90)		195
Cash and cash equivalents at beginning of year	121		211		16
Cash and cash equivalents at end of year	$	138	$	121	$	211

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