Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Improved ability to quantify exposures and tolerances to catastrophe losses; lower loss severity than peers with more coastal exposure

Social Achievements

• Strong and growing network of independent agents; focus on small to midsize businesses; use of technology to improve risk selection and geographic diversification in personal lines; top player in high-net-worth space

Governance Achievements

• Management enhances financial and operational performance by focusing on capital stability, agency relationships, small-to-midsize accounts, underwriting discipline, and an investment strategy aligned to support earnings in a soft market cycle; record of achieving operational and strategic goals

Climate Goals & Targets

Environmental Challenges

• Susceptible to earnings volatility due to high allocation of investment portfolio to equity investments; geographic concentration in the Midwest and Southeast; catastrophe and noncatastrophe convective storm losses; industrywide pressures on personal lines from rising severity, catastrophe losses, and persistent inflation; potential for earnings volatility due to equity market swings

Mitigation Strategies

• Continues to diversify risk geographically and by product line (Cincinnati Re, Cincinnati Global, E&S lines, life insurance); robust capital to absorb asset-risk shock amid rising interest rates and stock market volatility; management focuses on risk management; use of technology to improve risk selection and geographic diversification; strong underwriting margins and consistent investment income support capital and earnings; historically maintained relatively low leverage and excellent liquidity

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Catastrophe and noncatastrophe convective storm losses