2022 Annual Letter to Shareholders

TO OUR SHAREHOLDERS, FRIENDS AND ASSOCIATES:

Shareholders' equity rose to more than $13 billion at year-end 2021, including increased policyholder surplus for our insurance subsidiaries. That value on a per-share basis - your book value - increased 21.9% to $81.72 in 2021, setting a new record high.

Strong cash flow from our profitable insurance operations allowed us to expand our investment portfolio and increase investment income, supporting our primary performance target of an annual value creation ratio averaging 10% to 13%. For 2021, that ratio was 25.7%, resulting in an 18.7% annual average

over the past five years.

We believe the value creation ratio is an appropriate metric to evaluate our performance because it considers our ability to increase the book value of your company and your shareholder dividends.

In January 2022, our board of directors increased the regular quarterly cash dividend 9.5% to 69-cents-per-share, setting the stage for a 62nd consecutive year of increasing shareholder dividends. We believe only seven other public companies in the U.S. can make that statement.

We balance growth and profitability, continuing to outperform the industry. A.M. Best Co., a leading insurance industry ratings agency, estimates 2021 U.S. property casualty industry results at a 99.6% combined ratio on a statutory basis with 9.2% net written premium growth.

Our property casualty net written premium growth reached 10% for the year; that pace included 12% growth to a record $897 million in new business premiums written by our agency partners. Net written premiums grew 53% for Cincinnati Re®, our reinsurance assumed operation, and 6% for Cincinnati Global

Underwriting Ltd.SM, our London-based global specialty underwriter for Cincinnati Global Syndicate 318 Underwriters at Lloyd's.

We aim for our combined ratio to consistently be within the range of 95% to 100%. When the combined ratio is below 100%, we've achieved an underwriting profit in our insurance operations. Our full-year 2021 combined ratio finished much better than that range at 88.3%. That's the 10th year in a row of underwriting profitability for your company, reflecting the diligent execution of our deliberate growth and profitability strategies.

ANSWERING THE CALL

With our vision clearly in focus - to be the best company serving independent agents - we can confidently invest in the people, resources and technology to keep moving forward, growing, evolving and delivering results that benefit our agents and policyholders, in tucreating long-term value for shareholders.

Our independent agency force is also evolving. They need efficiency, expertise and technical prowess from the carriers they work with. Independent agents expect flexible products backed by people with the expertise to artfully create an insurance program that cares for the whole of the clients they serve.

We must answer the call of these expectations - and we are. We are infusing our time-tested culture of listening to agents and building relationships with expertise to create a new era of comprehensive solutions that help our agents capitalize on opportunities.

I encourage you to leamore about our efforts by reading the special We answer the call sections of this letter, along with the Q&A with some of our key company leaders on how they are continuing to build expertise for the future in their respective areas of responsibility.

Cincinnati Financial Corporation 1

Book value per share rose nearly 22% to $81.72 at December 31, 2021, compared with year-end 2020, a new record high, resulting in a 25.7% value creation ratio. On a five-year average basis our value creation ratio was 18.7% - ahead of our target range. The board of directors' January decision to increase the cash dividend demonstrates their confidence in the future success of our strategies and sets the stage for a 62nd consecutive year of increasing regular annual dividends.

2 2022 Annual Letter to Shareholders

QInsurance Expertise&ABlends Art and Science

When you think of the expertise needed at a leading insurance organization, you probably imagine people focused on evaluating risks and reviewing claims. Steve Spray, president of The Cincinnati Insurance Company, Teresa Cracas, chief risk officer, John Kellington, chief information officer, and Marc Schambow, chief claims officer, have infused our company with expertise in those areas, plus some that may surprise you - third-party data integrations, robotic process automation and virtual reality.

We've developed and hired associates with mastery in diverse disciplines - and the results are apparent in our track record of growth and profitability. Now, we're looking ahead to the talent, technology and products we'll need to remain an industry leader

in the next decade.Clockwise from left: Marc Schambow, chief claims officer; John Kellington, chief information officer; Steve Spray, president; and Teresa Cracas, chief risk officer

Sophisticated Pricing

The insurance industry is unique in the fact that we don't know the ultimate cost of our products until long after they are sold. To be a competitive and stable market for our agencies, we must have confidence in our underwriters and our pricing models, and our agents must be able to clearly articulate the value of our products to their clients.

A focus on profitable growth led to a 14.5-point improvement in our commercial lines business combined ratio, recording an 83.8% for the year. While the pandemic slowed growth in 2020 and early in 2021, net written premium growth returned to a healthy pace by midway through the year, reaching 8% at year-end 2021 compared with year- end 2020.

Our personal lines business continued its trend of profitability, producing a 94.0% combined ratio for the year. We've continued our steady progress toward establishing Cincinnati Insurance as a leader in serving our agencies' high net worth personal lines clients. In 2021, we grew this portion of our business by 28% compared to 2020, bringing annual premiums for higher net worth clients to $663 million.

This improvement in profitability in our personal lines business took a multifaceted approach. Over the past few years, we have: increased pricing precision on middle market new business with the introduction of The Cincinnati Casualty Company; added an excess and surplus lines homeowner product to help our agents answer the challenges many clients in California are facing due to the high frequency of wildfires in that state; opened two new states - Maine and New Mexico; and made greater use of higher minimum loss deductibles and enhanced our property inspection process to verify home condition and insurance to value for high net worth and middle market clients.

We're continuing to expand the data and analytical tools we use to sharpen our understanding of the differing geographies in which we do business. The regulatory environment can differ from state to state - as can the weather. Deepening our expertise of what makes each market unique allows us to offer the right mix of products and services to ensure our agencies' and our own success.

As we've grown in geographies outside our traditional midwestefootprint and added to lines of business less susceptible to weather-related natural catastrophes, including management liability, surety, machinery & equipment and inland marine coverages for personal lines, we've helped to smooth our results. We believe we will realize more benefit from these initiatives over time.

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