Expected future benefit payments, 2025

  
Excluding cash, during 2021 we held approximately 87% of our pension portfolio in domestic common equity investments. The remainder of the portfolio consisted of 8% in United States government fixed-maturity investments, 3% in domestic corporate fixed-maturity investments and 2% in states, municipalities and taxable political subdivisions fixed-maturity investments. Our common equity portfolio consisted of 32% in the information technology sector, 20% in the financial sector, 13% in the healthcare sector, and 12% in the industrial sector, at year-end 2021. No additional sectors accounted for 10% or more of our common equity portfolio balance at year-end 2021.  Investments in securities are valued based on the fair value hierarchy outlined in Note 3, Fair Value Measurements. The pension plan did not have any liabilities carried at fair value during the years ended December 31, 2021 and 2020. The following table shows the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2021 and 2020. Excluded from the table below is cash on hand of $16 million and $31 million at December 31, 2021 and 2020, respectively.

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions) |  | Quoted prices inactive markets foridentical assets (Level 1) |  | Significant otherobservable inputs (Level 2) |  | Significantunobservableinputs (Level 3) |  | Total |
| At December 31, 2021 |  |  |  |  |
| Fixed maturities, available for sale: |  |   |  |   |  |   |  |   |
| United States government |  | $ | 31  |  |  | $ | —  |  |  | $ | —  |  |  | $ | 31  |  |
| Corporate  |  | —  |  |  | 11  |  |  | —  |  |  | 11  |  |
| States, municipalities and political subdivisions |  | —  |  |  | 7  |  |  | —  |  |  | 7  |  |
| Total fixed maturities, available for sale |  | 31  |  |  | 18  |  |  | —  |  |  | 49  |  |
| Common equities |  | 332  |  |  | —  |  |  | —  |  |  | 332  |  |
| Total |  | $ | 363  |  |  | $ | 18  |  |  | $ | —  |  |  | $ | 381  |  |
|  |  |  |  |  |  |  |  |  |
| At December 31, 2020 |  |   |  |   |  |   |  |   |
| Fixed maturities, available for sale: |  |   |  |   |  |   |  |   |
| United States government |  | $ | 31  |  |  | $ | —  |  |  | $ | —  |  |  | $ | 31  |  |
| Corporate  |  | —  |  |  | 20  |  |  | —  |  |  | 20  |  |
| States, municipalities and political subdivisions |  | —  |  |  | 9  |  |  | —  |  |  | 9  |  |
| Total fixed maturities, available for sale |  | 31  |  |  | 29  |  |  | —  |  |  | 60  |  |
| Common equities |  | 266  |  |  | —  |  |  | —  |  |  | 266  |  |
| Total |  | $ | 297  |  |  | $ | 29  |  |  | $ | —  |  |  | $ | 326  |  |
|  |  |  |  |  |  |  |  |  |

 Our pension plan assets included 202,337 shares of the company’s common stock at both December 31, 2021 and 2020, which had a fair value of $23 million and $18 million at December 31, 2021 and 2020, respectively. The defined benefit pension plan did not purchase any of our common stock during 2021 or 2020. The defined benefit pension plan did not sell any shares during 2021 and sold 29,776 shares of our common stock during 2020. The company paid less than $1 million in both 2021 and 2020 in cash dividends on our common stock to the pension plan. We estimate $6 million of benefit payments from the SERP during 2022. We expect to make the following benefit payments for our qualified plan and SERP, reflecting expected future service:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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| (Dollars in millions) |  | Years ended December 31, |
|  |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 |  | 2027 - 2031 |
| Expected future benefit payments |  | $ | 29  |  |  | $ | 25  |  |  | $ | 27  |  |  | $ | 29  |  |  | $ | 34  |  |  | $ | 162  |  |
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Cincinnati Financial Corporation - 2021 10-K - Page 165
