Cover
Cover | 12 Months Ended |
Dec. 31, 2022 | |
Document Information [Line Items] | |
Document Type | DEF 14A |
Amendment Flag | false |
Entity Information [Line Items] | |
Entity Registrant Name | Cincinnati Financial Corporation |
Entity Central Index Key | 0000020286 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Pay vs Performance Disclosure [Table] | |||
Pay vs Performance [Table Text Block] | Year Summary Compensa-tion Total for CEO Compensa-tion actually paid to CEO Average Summary Compensa-tion Total for Other NEOs Average Compensa-tion actually paid to Other NEOs Value of Initial Fixed $100 Investment based on: Net Income ($) (in millions) VCR 3-Year TSR TSR S&P Composite 1500 P&C Insurance Index 2022 7,596,511 4,720,240 3,513,165 2,250,118 105.32 141.41 (486) (14.6) % 5.3 % 2021 6,490,767 9,608,066 3,181,147 4,447,000 114.32 123.70 2,946 25.7 % 58.8 % 2020 3,839,784 2,332,489 2,092,643 1,253,067 85.77 104.83 1,216 14.7 % 26.5 % | ||
Company Selected Measure Name | VCR | ||
Named Executive Officers, Footnote [Text Block] | 1. Steven J. Johnston was our CEO for each year presented. The individuals comprising the Other NEOs for each year presented are listed below. 2020 2021 2022 Michael J. Sewell Michael J. Sewell Michael J. Sewell Martin F. Hollenbeck Martin F. Hollenbeck Stephen M. Spray Martin J. Mullen John S. Kellington Martin F. Hollenbeck John S. Kellington Stephen M. Spray John S. Kellington Stephen M. Spray Teresa C. Cracas | ||
Peer Group Issuers, Footnote [Text Block] | The Peer Group TSR set forth in this table utilizes the S&P Composite 1500 Property & Casualty Insurance Index, which we also use for the stock performance graph required by Item 201(e) of Regulation S-K included in our Annual Report on Form 10-K, for the year ended December 31, 2022. The comparison assumes $100 was invested for the period starting December 31, 2019, through the end of the listed year in the company and in the S&P Composite 1500 Property & Casualty Insurance Index, respectively. All dollar values assume reinvestment of the pre-tax value of dividends paid by companies, where applicable, included in the S&P Composite 1500 Property & Casualty Insurance Index. Historical stock performance is not necessarily indicative of future stock performance. This index is not the Peer Group used by the Committee to determine performance-based compensation awards. | ||
PEO Total Compensation Amount | $ 7,596,511 | $ 6,490,767 | $ 3,839,784 |
PEO Actually Paid Compensation Amount | $ 4,720,240 | 9,608,066 | 2,332,489 |
Adjustment To PEO Compensation, Footnote [Text Block] | The amounts shown for Compensation Actually Paid (CAP) have been calculated in accordance with Item 402(v) of Regulation S-K and do not reflect compensation actually earned, realized, or received by the company’s CEO or Other NEOs. These amounts reflect the Summary Compensation Table Total (SCT) with certain adjustments as described in footnote 3 below.CAP reflects the exclusions and inclusions of certain amounts for the CEO and the Other NEOs as set forth below. Equity values are calculated in accordance with FASB ASC Topic 718. Amounts in the Exclusion of Stock Awards and Option Awards column are the totals from the Stock Awards and Option Awards columns set forth in the Summary Compensation Table for the listed year. Amounts in the Exclusion of Change in Pension Value column reflect the amounts attributable to the Change in Pension Value reported in the Summary Compensation Table for the listed year. Amounts in the Inclusion of Pension Service Cost are based on the service cost for services rendered during the listed year. Year Summary Compensation Table Total for CEO Exclusion of Change in Pension Value for CEO Exclusion of Stock Awards and Option Awards for CEO Inclusion of Pension Service Cost for CEO Inclusion of Equity Values for CEO Compensation Actually Paid to CEO 2022 7,596,511 — (3,914,926) — 1,038,655 4,720,240 2021 6,490,767 — (2,511,095) — 5,628,394 9,608,066 2020 3,839,784 — (2,069,478) — 562,183 2,332,489 The amounts in the Inclusion of Equity Values in the tables above are derived from the amounts set forth in the following tables: Year Year-End Fair Value of Equity Awards Granted During Year That Remained Unvested as of Last Day of Year for CEO Change in Fair Value from Last Day of Prior Year to Last Day of Year of Unvested Equity Awards for CEO Vesting Date Fair Value of Equity Awards Granted During Year that Vested During Year for CEO Change in Fair Value from Last Day of Prior Year to Vesting Date of Unvested Equity Awards that Vested During Year for CEO Fair Value at Last Day of Prior Year of Equity Awards Forfeited During Year for CEO Total Inclusion of Equity Values for CEO 2022 2,225,211 (1,787,489) — 600,933 — 1,038,655 2021 3,544,638 1,504,404 — 579,352 — 5,628,394 2020 1,537,273 (1,305,778) — 330,688 — 562,183 | ||
Non-PEO NEO Average Total Compensation Amount | $ 3,513,165 | 3,181,147 | 2,092,643 |
Non-PEO NEO Average Compensation Actually Paid Amount | $ 2,250,118 | 4,447,000 | 1,253,067 |
Adjustment to Non-PEO NEO Compensation Footnote [Text Block] | Year Average Summary Compensation Table Total for Other NEOs Average Exclusion of Change in Pension Value for Other NEOs Average Exclusion of Stock Awards and Option Awards for Other NEOs Average Inclusion of Pension Service Cost for Other NEOs Average Inclusion of Equity Values for Other NEOs Average Compensation Actually Paid to Other NEOs 2022 3,513,165 — (1,699,967) 21,559 415,361 2,250,118 2021 3,181,147 (65,495) (1,117,955) 24,446 2,424,857 4,447,000 2020 2,092,643 (182,623) (896,434) 13,047 226,434 1,253,067 Year Average Year-End Fair Value of Equity Awards Granted During Year That Remained Unvested as of Last Day of Year for Other NEOs Average Change in Fair Value from Last Day of Prior Year to Last Day of Year of Unvested Equity Awards for Other NEOs Average Vesting Date Fair Value of Equity Awards Granted During Year that Vested During Year for Other NEOs Average Change in Fair Value from Last Day of Prior Year to Vesting Date of Unvested Equity Awards that Vested During Year for Other NEOs Average Fair Value at Last Day of Prior Year of Equity Awards Forfeited During Year for Other NEOs Total - Average Inclusion of Equity Values for Other NEOs 2022 835,910 (698,989) 95,540 197,696 (14,796) 415,361 2021 1,563,008 628,049 — 233,800 — 2,424,857 2020 596,733 (460,153) 49,917 52,845 (12,908) 226,434 | ||
Compensation Actually Paid vs. Total Shareholder Return [Text Block] | CAP and Cumulative TSR As shown in the charts below, the CEO and Other NEOs’ CAP amounts are aligned with the company’s TSR. This is due primarily to the company's use of equity incentives, which are tied directly to stock price in addition to the company’s financial performance. As described in more detail in Compensation of Named Executive Officers, Compensation Discussion and Analysis, Long-Term Stock-Based Compensation beginning on Page 44 | ||
Compensation Actually Paid vs. Net Income [Text Block] | CAP and Net Income As shown in the charts below, the company’s net income has varied significantly in the years presented. This is due in large part to the inclusion of the change in fair value in our equity portfolio in the net income calculation in accordance with Financial Accounting Standards Board (FASB), ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities . Stock market volatility throughout the period also affected the valuations of outstanding equity incentives. The Committee does not use net income as a performance objective in any of the performance-based compensation awards. | ||
Compensation Actually Paid vs. Company Selected Measure [Text Block] | CAP and VCR As shown in the charts below, the CEO and Other NEOs’ CAP amounts are generally aligned with the company’s VCR. This is due primarily to the contribution of the changes in book value to the VCR calculation, which includes the changes in fair value in the company’s equity portfolio. As described in more detail in Compensation of Named Executive Officers, Compensation Discussion and Analysis, beginning on Page 32 | ||
Total Shareholder Return Amount | $ 105.32 | 114.32 | 85.77 |
Peer Group Total Shareholder Return Amount | 141.41 | 123.70 | 104.83 |
Net Income (Loss) | $ (486,000,000) | $ 2,946,000,000 | $ 1,216,000,000 |
Company Selected Measure Amount | (0.146) | 0.257 | 0.147 |
PEO Name | Steven J. Johnston | ||
Measure [Axis]: 1 | |||
Pay vs Performance Disclosure [Table] | |||
Measure Name | VCR | ||
Non-GAAP Measure Description [Text Block] | Financial Performance Measures As described in greater detail in “Compensation of Named Executive Officers – Compensation Discussion and Analysis,” the company’s executive compensation program is based on a pay-for-performance philosophy. The metrics that the company uses for both our short-term and long-term performance-based awards are selected to incentivize achievement of both short-term and long-term performance objectives that create value for our enterprise and our shareholders. For 2022, we determined VCR to be the most important financial performance measure used to link company performance to CAP for our CEO and Other NEOs in 2022. This performance measure may not have been the most important financial performance measure for years 2021 and 2020, and we may determine a different financial performance measure to be the most important financial performance measure in future years. The Committee established relative VCR compared with the nine companies included in company’s Peer Group as the primary performance objective for annual incentive compensation awards. The relative VCR placement earned payouts at target levels for the CEO and the Other NEOs for 2022. The Committee does not use the S&P Composite 1500 Property & Casualty Insurance Index in setting targets or objectives for performance-based compensation. See Compensation of Named Executive Officers, Compensation Discussion and Analysis, Benchmarking and Peer Group beginning on Page 52 Analysis of the Information Presented in the Pay Versus Performance Table While the Committee uses several performance measures to align executive compensation with company performance, including VCR and 3-year TSR achievement relative to the companies in the Peer Group, not all of those performance measures are presented in the Pay Versus Performance Table and therefore the company’s performance measures do not necessarily align with compensation actually paid (CAP) as calculated in accordance with Item 402(v) of Regulation S-K for a particular year. In accordance with Item 402(v) of Regulation S-K, the company is providing the following descriptions of the relationships between information presented in the Pay Versus Performance Table. | ||
Measure [Axis]: 2 | |||
Pay vs Performance Disclosure [Table] | |||
Other Performance Measure Amount | 0.053 | 0.588 | 0.265 |
Measure Name | 3-year TSR | ||
PEO [Member] | Adjustment, Exclusion of Change in Pension Value [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount | $ 0 | $ 0 | $ 0 |
PEO [Member] | Adjustment, Exclusion of Stock Awards and Option Awards [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount | (3,914,926) | (2,511,095) | (2,069,478) |
PEO [Member] | Adjustment, Inclusion of Pension Service Cost [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount | 0 | 0 | 0 |
PEO [Member] | Adjustment, Equity Award Adjustments [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount | 1,038,655 | 5,628,394 | 562,183 |
PEO [Member] | Equity Awards Granted During the Year, Unvested [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount, Equity Awards | 2,225,211 | 3,544,638 | 1,537,273 |
PEO [Member] | Equity Awards Granted in Prior Years, Unvested [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount, Equity Awards | (1,787,489) | 1,504,404 | (1,305,778) |
PEO [Member] | Equity Awards Granted During the Year, Vested [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount, Equity Awards | 0 | 0 | 0 |
PEO [Member] | Equity Awards Granted in Prior Years, Vested [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount, Equity Awards | 600,933 | 579,352 | 330,688 |
PEO [Member] | Equity Awards that Failed to Meet Vesting Conditions [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount, Equity Awards | 0 | 0 | 0 |
Non-PEO NEO [Member] | Adjustment, Exclusion of Change in Pension Value [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount | 0 | (65,495) | (182,623) |
Non-PEO NEO [Member] | Adjustment, Exclusion of Stock Awards and Option Awards [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount | (1,699,967) | (1,117,955) | (896,434) |
Non-PEO NEO [Member] | Adjustment, Inclusion of Pension Service Cost [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount | 21,559 | 24,446 | 13,047 |
Non-PEO NEO [Member] | Adjustment, Equity Award Adjustments [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount | 415,361 | 2,424,857 | 226,434 |
Non-PEO NEO [Member] | Equity Awards Granted During the Year, Unvested [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount, Equity Awards | 835,910 | 1,563,008 | 596,733 |
Non-PEO NEO [Member] | Equity Awards Granted in Prior Years, Unvested [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount, Equity Awards | (698,989) | 628,049 | (460,153) |
Non-PEO NEO [Member] | Equity Awards Granted During the Year, Vested [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount, Equity Awards | 95,540 | 0 | 49,917 |
Non-PEO NEO [Member] | Equity Awards Granted in Prior Years, Vested [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount, Equity Awards | 197,696 | 233,800 | 52,845 |
Non-PEO NEO [Member] | Equity Awards that Failed to Meet Vesting Conditions [Member] | |||
Pay vs Performance Disclosure [Table] | |||
Adjustment to Compensation Amount, Equity Awards | $ (14,796) | $ 0 | $ (12,908) |