Forfeited or canceled (in dollars per share)

  
•Expected volatility is based on each company's historical volatility using daily stock price observations with the period commensurate with the performance measurement period. •Dividend yield has been modeled assuming dividends are reinvested in additional shares of the issuing entity on the ex-dividend date during the performance period. •Risk-free rates are equal to the yield, as of the measurement date, of the zero-coupon U.S. Treasury bill that is commensurate with the performance measurement period. The following assumptions were used in determining fair value for performance-based grants issued:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  | 2021 |  | 2020 |  | 2019 |
| Expected term |  | 2.85 years |  | 2.86 years |  | 2.86 years |
| Expected volatility |  | 29.50-47.26% |  | 15.88-25.13% |  | 15.10-25.00% |
| Dividend yield |  | 2.62% |  | 2.15% |  | 2.61% |
| Risk-free rates |  | 0.20% |  | 1.30% |  | 2.48% |
|  |  |  |  |  |  |  |

  
Below is a summary of service-based and performance-based share information, assuming a target payout for performance-based shares, for the year 2021:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Shares in thousands) |  | Service-basedshares |  | Weighted-average grantdate fair value |  | Performance-basedshares |  | Weighted-average grantdate fair value |
| Nonvested at January 1, 2021 |  | 696  |  |  | $ | 81.56  |  |  | 147  |  |  | $ | 84.64  |  |
| Granted |  | 243  |  |  | 89.29  |  |  | 106  |  |  | 86.13  |  |
| Vested |  | (274) |  |  | 67.96  |  |  | (114) |  |  | 63.29  |  |
| Forfeited or canceled |  | (31) |  |  | 89.73  |  |  | —  |  |  | —  |  |
| Nonvested at December 31, 2021 |  | 634  |  |  | 90.01  |  |  | 139  |  |  | 103.16  |  |
|  |  |  |  |  |  |  |  |  |

 Cincinnati Financial Corporation - 2021 10-K - Page 171
