Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending March 31, 2012

 

6200 South Gilmore Road

Fairfield, Ohio 45014-5141

www.cinfin.com

 

Investor Contact:	Media Contact:	Shareholder Contact:
Dennis E. McDaniel	Joan O. Shevchik	Jerry L. Litton
(513) 870-2768	(513) 603-5323	(513) 870-2639

 

	A.M. Best	Fitch	Moody’s	Standard & Poor’s
Cincinnati Financial Corporation
Corporate Debt	a-	BBB+	A3	BBB
The Cincinnati Insurance Companies
Insurer Financial Strength
Property Casualty Group
Standard Market Subsidiaries:	A+	–	A1	A
The Cincinnati Insurance Company	A+	A+	A1	A
The Cincinnati Indemnity Company	A+	A+	A1	A
The Cincinnati Casualty Company	A+	A+	A1	A
Surplus Lines Subsidiary:
The Cincinnati Specialty Underwriters Insurance Company	A	–	–	–
The Cincinnati Life Insurance Company	A	A+	–	A

 

Ratings are as of April 25, 2012, under continuous review and subject to change and/or affirmation. For the current ratings, select Financial Strength on www.cinfin.com.

 

The consolidated financial statements and financial exhibits that follow are unaudited. These consolidated financial statements and exhibits should be read in conjunction with the consolidated financial statements and notes included with our periodic filings with the U.S. Securities and Exchange Commission. The results of operations for interim periods may not be indicative of results to be expected for the full year.

 

 

  Cincinnati Financial Corporation

  Supplemental Financial Data

  First Quarter 2012

     

 

		Page
	Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3
Consolidated
	Quick Reference	4
	CFC and Subsidiaries Consolidation – Three Months Ended March 31, 2012	5
	CFC Insurance Subsidiaries – Selected Balance Sheet Data	6
Consolidated Property Casualty Insurance Operations
	Statutory Statements of Income	7
	Consolidated Cincinnati Insurance Companies – Losses Incurred Detail	8
	Consolidated Cincinnati Insurance Companies – Loss Ratio Detail	9
	Consolidated Cincinnati Insurance Companies – Loss Claim Count Detail	10
	Direct Written Premiums by Line of Business and State	11
	Quarterly Property Casualty Data – Commercial Lines of Business	12
	Quarterly Property Casualty Data – Personal Lines of Business	13
	Loss and Loss Expense Analysis	14
Reconciliation Data
	Quarterly Property Casualty Data – Consolidated	15
	Quarterly Property Casualty Data – Commercial Lines	16
	Quarterly Property Casualty Data – Personal Lines	17
	Quarterly Property Casualty Data – Excess & Surplus Lines	18
Life Insurance Operations
	Statutory Statements of Income	19

 

 

Definitions of Non-GAAP Information and
Reconciliation to Comparable GAAP Measures

 

Cincinnati Financial Corporation prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual and therefore is not reconciled to GAAP data.

 

Management uses certain non-GAAP and non-statutory financial measures to evaluate its primary business areas – property casualty insurance, life insurance and investments. Management uses these measures when analyzing both GAAP and non-GAAP measures to improve its understanding of trends in the underlying business and to help avoid incorrect or misleading assumptions and conclusions about the success or failure of company strategies. Management adjustments to GAAP measures generally: apply to non-recurring events that are unrelated to business performance and distort short-term results; involve values that fluctuate based on events outside of management’s control; or relate to accounting refinements that affect comparability between periods, creating a need to analyze data on the same basis.

 

·

Operating income: Operating income is calculated by excluding net realized investment gains and losses (defined as realized investment gains and losses after applicable federal and state income taxes) from net income. Management evaluates operating income to measure the success of pricing, rate and underwriting strategies. While realized investment gains (or losses) are integral to the company’s insurance operations over the long term, the determination to realize investment gains or losses in any period may be subject to management’s discretion and is independent of the insurance underwriting process. Also, under applicable GAAP accounting requirements, gains and losses can be recognized from certain changes in market values of securities without actual realization. Management believes that the level of realized investment gains or losses for any particular period, while it may be material, may not fully indicate the performance of ongoing underlying business operations in that period.

For these reasons, many investors and shareholders consider operating income to be one of the more meaningful measures for evaluating insurance company performance. Equity analysts who report on the insurance industry and the company generally focus on this metric in their analyses. The company presents operating income so that all investors have what management believes to be a useful supplement to GAAP information.

·

Statutory accounting rules: For public reporting, insurance companies prepare financial statements in accordance with GAAP. However, insurers also must calculate certain data according to statutory accounting rules as defined in the NAIC’s Accounting Practices and Procedures Manual, which may be, and has been, modified by various state insurance departments. Statutory data is publicly available, and various organizations use it to calculate aggregate industry data, study industry trends and compare insurance companies.

·

Written premium: Under statutory accounting rules, property casualty written premium is the amount recorded for policies issued and recognized on an annualized basis at the effective date of the policy. Management analyzes trends in written premium to assess business efforts. Earned premium, used in both statutory and GAAP accounting, is calculated ratably over the policy term. The difference between written and earned premium is unearned premium.

 

 

Cincinnati Financial Corporation

Quick Reference - First Quarter 2012

(all data shown is for the three months ended or as of March 31, 2012)

 

				Year over year change %						Year over year change %
		3/31/2012						3/31/2012
Revenues:						Benefits and expenses:
Commercial lines net written premiums	$	626		6		Commercial lines loss and loss expenses	$	348		(7)
Personal lines net written premiums		193		12		Personal lines loss and loss expenses		174		23
Excess & surplus lines net written premiums		24		33		Excess & surplus lines loss and loss expenses		17		13
Property casualty net written premiums		843		8		Life and accident and health losses and policy benefits		43		(4)
Life and accident and health net written premiums		49		12		Underwriting, acquisition and insurance expenses		274		5
Annuity net written premiums		16		(72)		Interest expenses		14		8
Life, annuity and accident and health net written premiums		65		(37)		Other operating expenses		4		0
Commercial lines net earned premiums		568		5		Total benefits & expenses		874		2
Personal lines net earned premiums		209		10		Income before income taxes		112		49
Excess & surplus lines net earned premiums		21		40		Total income tax		26		86
Property casualty net earned premiums		798		7
Fee revenue		1		0		Balance Sheet:
Life and accident and health net earned premiums		41		11
Investment income		131		0		Fixed maturity investments	$	8,956
Realized gains on investments		13		8		Equity securities		3,131
Other revenue		2		(33)		Other invested assets		66
Total revenues		986		6		Total invested assets	$	12,153
						Equity in net assets of subsidiaries	$	4,908
						Loss and loss expense reserves	$	4,347
						Life policy and investment contract reserves		2,240
Income:						Total debt and capital lease obligation		937
						Shareholders' equity		5,207
Operating income	$	77		43
Net realized investment gains and losses		9		29		Key ratios:
Net income		86		41
						Commercial lines GAAP combined ratio		94.2	%
						Personal lines GAAP combined ratio		110.9
						Excess & surplus lines GAAP combined ratio		113.6
						Property casualty GAAP combined ratio		99.1
Per share (diluted):
						Commercial lines STAT combined ratio		92.4	%
Operating income	$	0.48		45		Personal lines STAT combined ratio		114.8
Net realized investment gains and losses		0.05		0		Excess & surplus lines STAT combined ratio		113.5
Net income		0.53		39		Property casualty STAT combined ratio		98.8
Book value		32.07		3
Weighted average shares in thousands		163,145		0		Value creation ratio		4.6	%

 

 

 

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Three Months Ended March 31, 2012

 

(In millions)		CFC				CONSOL P&C				CLIC				CFC-I				ELIM				Total
Revenues:
Premiums earned:
Property casualty		$	-			$	842			$	-			$	-			$	-			$	842
Life			-				-				52				-				-				52
Accident health			-				-				2				-				-				2
Premiums ceded			-				(44	)			(13	)			-				-				(57	)
Total earned premium			-				798				41				-				-				839
Investment income			10				87				34				-				-				131
Realized gain on investments			-				12				1				-				-				13
Fee revenue			-				1				-				-				-				1
Other revenue			4				-				-				2				(4	)			2
Total revenues		$	14			$	898			$	76			$	2			$	(4	)		$	986
Benefits & expenses:
Losses & policy benefits		$	-			$	541			$	53			$	-			$	-			$	594
Reinsurance recoveries			-				(2	)			(10	)			-				-				(12	)
Underwriting, acquisition and insurance expenses			-				252				22				-				-				274
Other operating expenses			8				-				-				1				(5	)			4
Interest expense			13				-				-				1				-				14
Total expenses		$	21			$	791			$	65			$	2			$	(5	)		$	874
Income (loss) before income taxes		$	(7	)		$	107			$	11			$	-			$	1			$	112
Provision (benefit) for income taxes:
Current operating income		$	(7	)		$	24			$	(1	)		$	-			$	-			$	16
Capital gains/losses			-				4				-				-				-				4
Deferred			3				(2	)			5				-				-				6
Total provision (benefit) for income taxes		$	(4	)		$	26			$	4			$	-			$	-			$	26
Operating income (loss)		$	(3	)		$	73			$	6			$	-			$	1			$	77
Net income (loss) - current year		$	(3	)		$	81			$	7			$	-			$	1			$	86
Net income (loss) - prior year		$	-			$	73			$	(12	)		$	-			$	-			$	61

 

*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.

 

 

Cincinnati Financial Corporation Insurance Subsidiaries

Selected Balance Sheet Data

 

(In millions)
		12/31/12				9/30/12				06/30/12				3/31/12				12/31/11				9/30/11				6/30/11				3/31/11
Cincinnati Insurance Consolidated
Fixed maturities (fair value)														$	6,004			$	5,917			$	5,975			$	5,954			$	5,850
Equities (fair value)															2,264				2,131				1,865				2,113				2,203
Short-term investments (fair value)															-				-				-				-				-
Fixed maturities - pretax net unrealized gain															482				461				439				388				320
Equities - pretax net unrealized gain															731				594				361				631				670
Loss and loss expense reserves - STAT															3,938				3,906				4,013				3,971				3,853
Equity GAAP															4,864				4,740				4,507				4,686				4,706
Surplus - STAT															3,835				3,747				3,513				3,743				3,833
The Cincinnati Life Insurance Company
Fixed maturities (fair value)														$	2,736			$	2,629			$	2,652			$	2,528			$	2,449
Equities (fair value)															17				16				28				37				102
Short-term investments (fair value)															-				-				-				-				-
Fixed maturities - pretax net unrealized gain															223				195				197				174				149
Equities - pretax net unrealized gain (loss)															7				6				12				19				25
Equity - GAAP															792				770				766				779				752
Surplus - STAT															281				281				268				309				308

 

 

Consolidated Cincinnati Insurance Companies

Statutory Statements of Income

 

		For the Three Months Ended March 31,
(Dollars in millions)		2012				2011				Change				% Change
Underwriting income
Net premiums written		$	843			$	778			$	65				8
Unearned premiums increase			45				33				12				36
Earned premiums		$	798			$	745			$	53				7
Losses incurred		$	446			$	435			$	11				3
Allocated loss expenses incurred			45				45				-				nm
Unallocated loss expenses incurred			48				50				(2	)			(4	)
Other underwriting expenses incurred			261				236				25				11
Workers compensation dividend incurred			3				14				(11	)			(79	)
Total underwriting deductions		$	803			$	780			$	23				3
Net underwriting losses		$	(5	)		$	(35	)		$	30				86
Investment income
Gross investment income earned		$	89			$	91			$	(2	)			(2	)
Net investment income earned			88				90				(2	)			(2	)
Net realized capital gains			6				22				(16	)			(73	)
Net investment gains (excl. subs)		$	94			$	112			$	(18	)			(16	)
Dividend from subsidiary			-				-				-				-
Net investment gains (net of tax)		$	94			$	112			$	(18	)			(16	)
Other income		$	1			$	1			$	-				nm
Net income before federal income taxes		$	90			$	78			$	12				15
Federal and foreign income taxes incurred		$	24			$	13			$	11				85
Net income (statutory)		$	66			$	65			$	1				2

 

*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

*Excludes CSU Producers Resources Inc.

 

 

Consolidated Cincinnati Insurance Companies

Losses Incurred Detail

 

(In millions)	Three months ended																Six months ended				Nine months ended				Twelve months ended
	12/31/12		9/30/12		6/30/12		3/31/12		12/31/11		9/30/11		6/30/11		3/31/11		6/30/12		6/30/11		9/30/12		9/30/11		12/31/12		12/31/11
Consolidated
New losses greater than $4,000,000							$	10	$	21	$	18	$	6	$	11			$	16			$	34			$	56
New losses $1,000,000-$4,000,000								31		47		44		33		49				83				127				173
New losses $250,000-$1,000,000								43		53		59		51		54				106				165				217
Case reserve development above $250,000								67		68		57		51		34				85				142				210
Large losses subtotal							$	151	$	189	$	178	$	141	$	148			$	290			$	468			$	656
IBNR incurred								19		(11)		-		18		32				51				51				39
Catastrophe losses incurred								89		(25)		90		289		41				330				419				395
Remaining incurred								187		194		234		218		213				430				664				859
Total losses incurred							$	446	$	347	$	502	$	666	$	434			$	1,101			$	1,602			$	1,949
Commercial Lines
New losses greater than $4,000,000							$	10	$	21	$	18	$	6	$	11			$	16			$	34			$	56
New losses $1,000,000-$4,000,000								24		38		40		30		40				70				110				148
New losses $250,000-$1,000,000								31		35		45		39		37				77				122				156
Case reserve development above $250,000								64		58		52		46		31				77				129				187
Large losses subtotal							$	129	$	152	$	155	$	121	$	119			$	240			$	395			$	547
IBNR incurred								-		(5)		1		11		24				35				36				31
Catastrophe losses incurred								39		(18)		58		157		26				183				241				223
Remaining incurred								105		101		130		124		131				255				385				486
Total losses incurred							$	273	$	230	$	344	$	413	$	300			$	713			$	1,057			$	1,287
Personal Lines
New losses greater than $4,000,000							$	-	$	-	$	-	$	-	$	-			$	-			$	-			$	-
New losses $1,000,000-$4,000,000								5		9		4		3		9				13				17				25
New losses $250,000-$1,000,000								8		13		11		10		14				23				35				48
Case reserve development above $250,000								2		8		4		4		3				7				11				19
Large losses subtotal							$	15	$	30	$	19	$	17	$	26			$	43			$	63			$	92
IBNR incurred								14		(4)		(3)		4		4				9				6				1
Catastrophe losses incurred								49		(6)		32		131		14				145				177				171
Remaining incurred								81		90		103		91		80				170				273				364
Total losses incurred							$	159	$	110	$	151	$	243	$	124			$	367			$	519			$	628
Excess & Surplus Lines
New losses greater than $4,000,000							$	-	$	-	$	-	$	-	$	-			$	-			$	-			$	-
New losses $1,000,000-$4,000,000								2		-		-		-		-				-				-				-
New losses $250,000-$1,000,000								4		5		3		2		3				6				8				13
Case reserve development above $250,000								1		2		1		1		-				1				2				4
Large losses subtotal							$	7	$	7	$	4	$	3	$	3			$	7			$	10			$	17
IBNR incurred								5		(2)		2		3		4				7				9				7
Catastrophe losses incurred								1		(1)		-		1		1				2				1				1
Remaining incurred								1		3		1		3		2				5				6				9
Total losses incurred							$	14	$	7	$	7	$	10	$	10			$	21			$	26			$	34

 

*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. The sum of quarterly amounts may not equal the full year as each is computed independently.

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

 

 

 

Cincinnati Insurance Companies

Loss Ratio Detail

 

	Three months ended																Six months ended				Nine months ended				Twelve months ended
	12/31/12		9/30/12		6/30/12		3/31/12		12/31/11		9/30/11		6/30/11		3/31/11		6/30/12		6/30/11		9/30/12		9/30/11		12/31/12		12/31/11
Consolidated
New losses greater than $4,000,000							1.3	%	2.8	%	2.3	%	0.8	%	1.4	%			1.1	%			1.5	%			1.9	%
New losses $1,000,000-$4,000,000							3.9		5.7		5.8		4.6		6.7				5.6				5.7				5.7
New losses $250,000-$1,000,000							5.5		6.6		7.7		7.0		7.3				7.2				7.4				7.2
Case reserve development above $250,000							8.3		8.7		7.5		6.9		4.6				5.8				6.3				6.9
Large losses subtotal							19.0	%	23.8	%	23.3	%	19.3	%	20.0	%			19.7	%			20.9	%			21.7	%
IBNR incurred							2.3		(1.2)		0.1		2.5		4.4				3.4				2.3				1.4
Total catastrophe losses incurred							11.1		(3.0)		11.7		39.6		5.5				22.3				18.7				13.1
Remaining incurred							23.5		24.5		30.3		29.8		28.5				29.2				29.6				28.2
Total loss ratio							55.9	%	44.1	%	65.4	%	91.2	%	58.4	%			74.6	%			71.5	%			64.4	%
Commercial Lines
New losses greater than $4,000,000							1.9	%	3.9	%	3.2	%	1.1	%	1.9	%			1.5	%			2.1	%			2.6	%
New losses $1,000,000-$4,000,000							4.2		6.5		7.3		5.5		7.5				6.5				6.8				6.7
New losses $250,000-$1,000,000							5.5		6.0		8.1		7.4		6.9				7.1				7.5				7.1
Case reserve development above $250,000							11.2		10.3		9.3		8.7		5.7				7.2				7.9				8.5
Large losses subtotal							22.8	%	26.7	%	27.9	%	22.7	%	22.0	%			22.3	%			24.3	%			24.9	%
IBNR incurred							0.0		(0.8)		0.2		2.0		4.4				3.3				2.2				1.4
Total catastrophe losses incurred							6.8		(3.2)		10.4		29.6		4.9				17.1				14.7				10.2
Remaining incurred							18.4		17.8		23.3		23.3		24.2				23.7				23.6				22.1
Total loss ratio							48.0	%	40.5	%	61.8	%	77.6	%	55.5	%			66.4	%			64.8	%			58.6	%
Personal Lines
New losses greater than $4,000,000							0.0	%	0.0	%	0.0	%	0.0	%	0.0	%			0.0	%			0.0	%			0.0	%
New losses $1,000,000-$4,000,000							2.3		3.9		2.2		2.0		4.8				3.5				3.0				3.3
New losses $250,000-$1,000,000							4.0		6.9		6.0		5.4		7.1				6.2				6.1				6.3
Case reserve development above $250,000							0.9		4.2		1.9		2.3		1.7				2.0				2.0				2.5
Large losses subtotal							7.2	%	15.0	%	10.1	%	9.7	%	13.6	%			11.7	%			11.1	%			12.1	%
IBNR incurred							6.6		(1.6)		(1.5)		2.4		2.3				2.3				1.0				0.3
Total catastrophe losses incurred							23.3		(3.0)		16.4		73.0		7.4				39.2				31.4				22.5
Remaining incurred							39.1		44.7		53.5		50.6		41.6				46.0				48.6				47.6
Total loss ratio							76.2	%	55.1	%	78.5	%	135.7	%	64.9	%			99.2	%			92.1	%			82.5	%
Excess & Surplus Lines
New losses greater than $4,000,000							0.0	%	0.0	%	0.0	%	0.0	%	0.0	%			0.0	%			0.0	%			0.0	%
New losses $1,000,000-$4,000,000							11.1		0.0		0.0		0.0		0.0				0.0				0.0				0.0
New losses $250,000-$1,000,000							17.7		22.6		13.5		12.4		25.8				18.7				16.8				18.4
Case reserve development above $250,000							5.6		7.6		9.3		2.5		2.7				2.6				5.1				5.8
Large losses subtotal							34.4	%	30.2	%	22.8	%	14.9	%	28.5	%			21.3	%			21.9	%			24.2	%
IBNR incurred							22.2		(10.4)		12.5		17.1		26.1				21.3				18.1				10.1
Total catastrophe losses incurred							3.7		(0.4)		2.4		4.2		2.8				3.6				3.1				2.2
Remaining incurred							5.4		14.5		3.4		13.4		20.2				16.6				11.8				12.5
Total loss ratio							65.7	%	33.9	%	41.1	%	49.6	%	77.6	%			62.8	%			54.9	%			49.0	%

 

*Certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

 

 

Cincinnati Insurance Companies

Loss Claim Count Detail

 

	Three months ended																Six months ended				Nine months ended				Twelve months ended
	12/31/12		9/30/12		6/30/12		3/31/12		12/31/11		9/30/11		6/30/11		3/31/11		6/30/12		6/30/11		9/30/12		9/30/11		12/31/12		12/31/11
Consolidated
New losses greater than $4,000,000							2		4		3		1		2				3				6				10
New losses $1,000,000-$4,000,000							19		23		25		18		30				48				73				96
New losses $250,000-$1,000,000							101		115		129		122		122				244				373				488
Case reserve development above $250,000							86		108		84		81		68				149				233				341
Large losses total							208		250		241		222		222				444				685				935
Commercial Lines
New losses greater than $4,000,000							2		4		3		1		2				3				6				10
New losses $1,000,000-$4,000,000							15		18		21		15		24				39				60				78
New losses $250,000-$1,000,000							70		76		98		97		85				182				280				356
Case reserve development above $250,000							81		90		72		70		59				129				201				291
Large losses total							168		188		194		183		170				353				547				735
Personal Lines
New losses greater than $4,000,000							-		-		-		-		-				-				-				-
New losses $1,000,000-$4,000,000							2		5		4		3		6				9				13				18
New losses $250,000-$1,000,000							21		31		26		20		29				49				75				106
Case reserve development above $250,000							4		15		9		10		8				18				27				42
Large losses total							27		51		39		33		43				76				115				166
Excess & Surplus Lines
New losses greater than $4,000,000							-		-		-		-		-				-				-				-
New losses $1,000,000-$4,000,000							2		-		-		-		-				-				-				-
New losses $250,000-$1,000,000							10		8		5		5		8				13				18				26
Case reserve development above $250,000							1		3		3		1		1				2				5				8
Large losses total							13		11		8		6		9				15				23				34

 

The sum of quarterly amounts may not equal the full year as each is computed independently.

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

 

 

 Consolidated Cincinnati Insurance Companies 

 Agency Direct Written Premiums by Agency State by Line of Business for the Three Months Ended March 31, 2012

 

(Dollars in millions)					Commercial Lines											Personal Lines								Consolidated			Comm'l Change %		Personal Change %		E & S Change %		Consol Change %
Risk State	Comm Casualty		Comm Property		Comm Auto		Workers' Comp		Spec Packages		Surety & Exec Risk		Mach. & Equipment		Personal Auto		Home Owner		Other Personal		E & S Lines		2012		2011
																							Total		Total
OH	$	36.2	$	24.7	$	16.3	$	-	$	5.1	$	6.4	$	1.4	$	26.1	$	20.4	$	7.7	$	2.6	$	146.8	$	136.9	8.8		4.4		16.2		7.2
IL		15.0		11.2		7.9		13.6		3.0		1.7		0.8		6.8		5.3		1.9		1.8		69.0		68.0	(2.0)		11.4		45.3		1.3
IN		14.0		10.8		7.5		9.0		2.3		1.4		0.9		7.0		6.7		1.8		2.5		63.8		57.8	9.3		8.7		52.5		10.4
PA		13.3		9.1		9.7		14.5		2.4		1.6		0.6		2.1		1.5		0.9		0.9		56.7		53.4	5.5		13.6		11.8		6.2
GA		7.4		5.8		5.0		3.6		2.2		1.4		0.3		8.1		7.9		2.4		1.6		45.7		41.6	9.6		7.7		60.2		10.0
NC		8.4		7.7		5.2		5.3		4.2		1.9		0.5		4.8		3.5		1.5		0.7		43.5		38.9	6.3		34.9		30.3		11.9
MI		8.7		6.1		4.0		5.1		2.3		1.5		0.5		5.3		4.1		0.9		1.2		39.9		34.2	9.1		37.2		77.6		16.6
WI		7.8		5.5		3.4		9.3		1.1		0.8		0.5		1.8		1.8		0.8		0.6		33.3		29.4	14.0		3.5		89.5		13.3
KY		6.3		6.3		4.4		0.8		1.7		0.8		0.3		5.5		4.6		1.3		0.8		32.7		30.8	6.3		7.3		(11.6)		6.1
VA		7.3		6.2		4.3		4.9		1.3		1.7		0.3		2.3		1.9		0.7		1.1		32.1		32.1	(3.5)		11.1		68.9		nm
TN		6.8		5.9		4.0		2.6		2.9		1.0		0.4		2.9		3.2		1.1		0.5		31.3		28.8	5.6		16.5		99.9		8.7
AL		4.7		5.7		1.9		0.4		2.4		0.8		0.3		4.0		6.4		1.4		0.8		29.0		27.0	6.7		7.4		21.0		7.3
MN		6.1		4.6		2.6		2.1		0.9		0.6		0.4		2.3		2.2		0.6		0.8		23.1		20.9	5.0		27.2		49.9		10.4
MO		4.9		5.0		3.1		2.6		1.8		0.5		0.4		1.1		1.5		0.4		1.3		22.5		20.7	6.6		16.8		20.5		8.6
FL		5.6		5.4		1.8		0.5		0.5		0.5		0.2		2.1		2.9		0.6		0.8		20.7		22.1	(7.5)		(6.6)		29.4		(6.3)
IA		4.7		3.6		2.3		4.8		0.9		0.8		0.2		1.0		1.0		0.4		0.6		20.3		21.6	(9.3)		10.6		49.1		(6.3)
TX		5.9		4.0		4.1		0.7		0.1		0.3		0.3		-		-		-		1.6		17.1		11.6	50.6		nm		23.9		47.6
NY		7.3		2.6		2.6		0.6		0.4		0.5		0.2		-		-		-		0.3		14.5		13.5	6.1		346.8		40.9		6.9
MD		3.9		2.3		3.1		2.2		0.3		0.5		0.2		0.6		0.6		0.2		0.3		14.2		12.8	7.4		59.3		20.1		11.3
AR		2.4		3.8		1.7		0.8		1.5		0.4		0.2		1.2		1.2		0.4		0.6		14.1		11.7	15.7		36.1		47.8		20.3
KS		2.8		2.8		1.5		2.5		0.8		0.4		0.2		1.0		1.3		0.3		0.5		14.1		12.5	11.3		7.7		133.0		12.6
UT		2.9		1.6		2.0		-		0.3		0.6		0.1		1.5		0.7		0.2		0.3		10.2		7.6	29.8		52.4		8.5		33.6
AZ		2.9		1.8		1.8		0.7		0.2		0.3		0.1		0.6		0.5		0.2		0.4		9.7		8.8	5.4		41.1		33.6		10.2
SC		2.3		2.1		1.6		0.9		0.6		0.4		0.1		0.7		0.5		0.2		0.2		9.6		8.5	8.0		40.1		39.5		12.5
MT		3.2		1.4		1.8		-		0.2		0.2		0.1		0.4		0.4		0.1		0.1		8.0		7.9	nm		15.7		(29.4)		1.2
ID		2.7		1.8		1.7		0.1		0.3		0.2		0.1		0.5		0.3		0.1		0.1		8.0		6.4	23.5		33.4		9.2		24.3
NE		1.8		1.8		0.8		1.5		0.6		0.4		0.1		0.2		0.2		0.1		0.5		7.8		7.8	(0.8)		0.1		17.2		0.2
WV		2.0		1.3		1.4		0.4		0.6		0.2		0.1		-		0.1		0.1		0.4		6.7		5.6	19.6		6.5		12.4		18.7
VT		1.0		0.9		0.7		2.1		0.3		0.2		0.1		0.3		0.2		0.1		0.2		6.1		5.6	6.2		4.1		158.4		8.6
ND		2.0		1.2		1.1		-		0.3		0.2		0.1		0.1		0.1		-		0.1		5.3		4.6	16.0		9.5		57.0		15.9
CO		1.2		1.5		1.0		0.1		-		0.2		0.1		-		-		-		0.3		4.3		3.6	16.1		nm		45.1		17.6
SD		0.9		0.8		0.5		1.0		0.2		0.1		0.1		-		-		-		0.1		3.6		3.1	18.1		nm		38.0		18.5
NH		0.9		0.5		0.4		0.7		0.1		0.1		-		0.3		0.3		0.1		0.2		3.6		3.8	(11.4)		31.8		1.0		(5.3)
WA		1.0		0.6		0.9		-		-		0.2		0.1		-		-		-		0.1		2.9		2.5	16.5		nm		(11.3)		15.0
NM		1.0		0.5		0.6		0.2		-		0.3		-		-		-		-		0.1		2.6		2.3	17.4		nm		23.6		17.6
DE		0.5		0.4		0.5		0.5		0.1		0.2		-		-		-		-		-		2.2		1.9	14.8		nm		nm		15.2
OR		0.7		0.3		0.3		-		-		0.1		-		-		-		-		0.3		1.7		0.7	117.7		nm		nm		153.2
WY		0.3		0.2		0.1		-		-		0.1		-		-		-		-		-		0.7		0.5	53.9		nm		(11.5)		44.6
CT		0.2		0.1		0.1		-		-		-		-		-		-		0.1		0.1		0.6		0.4	53.5		nm		97.6		55.5
All Other		1.2		0.7		0.7		1.4		-		0.3		-		-		-		-		0.2		4.4		3.2	40.5		(1.9)		7.9		38.6
Total	$	208.5	$	158.7	$	114.2	$	94.8	$	41.9	$	30.1	$	10.4	$	90.4	$	81.5	$	26.3	$	25.5	$	882.3	$	811.3	7.1		11.4		36.6		8.8
Other Direct		-		0.2		-		1.0		-		-		-		-		-		-		-		1.2		1.3	(5.8)		(74.1)		nm		(10.8)
Total Direct	$	208.5	$	158.9	$	114.2	$	95.8	$	41.9	$	30.1	$	10.4	$	90.4	$	81.5	$	26.3	$	25.5	$	883.5	$	812.6	7.1		11.4		36.6		8.7

 

Dollar amounts shown are rounded to the nearest hundred thousand; certain amounts may not add due to rounding. Percentage changes are calculated based on whole dollar amounts.

 

 

Quarterly Property Casualty Data - Commercial Lines

 

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11			9/30/11			6/30/11			3/31/11			6/30/12			6/30/11			9/30/12			9/30/11			12/31/12			12/31/11
Commercial casualty:
Written premiums										$	202		$	169		$	175		$	177		$	189					$	366					$	541					$	710
Earned premiums											181			179			180			180			172						352						532						711
Current accident year before catastrophe losses											70.2	%		70.4	%		64.1	%		66.0	%		78.8	%					72.3	%					69.5	%					69.7	%
Current accident year catastrophe losses											-			-			-			-			-						-						-						-
Prior accident years before catastrophe losses											(26.7)			11.6			(26.7)			(27.2)			(32.3)						(29.7)						(28.7)						(18.5)
Prior accident years catastrophe losses											-			-			-			-			-						-						-						-
Total loss and loss expense ratio											43.5	%		82.0	%		37.4	%		38.8	%		46.5	%					42.6	%					40.8	%					51.2	%
Commercial property:
Written premiums										$	141		$	125		$	132		$	123		$	132					$	255					$	387					$	512
Earned premiums											131			128			128			115			126						241						369						497
Current accident year before catastrophe losses											57.2	%		31.1	%		77.6	%		76.8	%		64.8	%					70.5	%					73.0	%					62.1	%
Current accident year catastrophe losses											31.4			(5.3)			33.8			78.8			15.2						45.6						41.5						29.4
Prior accident years before catastrophe losses											(4.4)			(17.5)			(4.9)			(1.7)			8.0						3.4						0.5						(4.1)
Prior accident years catastrophe losses											(5.8)			(5.3)			3.7			1.1			3.4						2.3						2.8						0.7
Total loss and loss expense ratio											78.4	%		3.0	%		110.2	%		155.0	%		91.4	%					121.8	%					117.8	%					88.1	%
Commercial auto:
Written premiums										$	114		$	100		$	96		$	102		$	107					$	209					$	305					$	405
Earned premiums											101			102			100			96			96						192						292						394
Current accident year before catastrophe losses											73.9	%		81.3	%		67.8	%		72.6	%		76.5	%					74.5	%					72.2	%					74.5	%
Current accident year catastrophe losses											1.4			(1.5)			2.5			6.2			0.3						3.3						3.0						1.9
Prior accident years before catastrophe losses											(11.9)			3.1			3.5			(11.0)			(24.2)						(17.6)						(10.3)						(6.9)
Prior accident years catastrophe losses											(0.5)			-			(0.1)			(0.1)			(0.4)						(0.2)						(0.2)						(0.2)
Total loss and loss expense ratio											62.9	%		82.9	%		73.7	%		67.7	%		52.2	%					60.0	%					64.7	%					69.3	%
Workers' compensation:
Written premiums										$	93		$	78		$	71		$	73		$	90					$	163					$	234					$	312
Earned premiums											81			83			78			81			76						157						235						318
Current accident year before catastrophe losses											82.7	%		64.5	%		119.2	%		108.5	%		95.6	%					102.3	%					107.9	%					96.6	%
Current accident year catastrophe losses											-			-			-			-			-						-						-						-
Prior accident years before catastrophe losses											(19.0)			(58.2)			(28.4)			(28.9)			(4.1)						(16.9)						(20.7)						(30.5)
Prior accident years catastrophe losses											-			-			-			-			-						-						-						-
Total loss and loss expense ratio											63.7	%		6.3	%		90.8	%		79.6	%		91.5	%					85.4	%					87.2	%					66.1	%
Specialty package:
Written premiums										$	40		$	37		$	36		$	27		$	37					$	64					$	100					$	137
Earned premiums											38			38			36			27			37						64						100						138
Current accident year before catastrophe losses											66.4	%		42.8	%		91.6	%		93.8	%		62.7	%					75.7	%					81.5	%					70.9	%
Current accident year catastrophe losses											24.8			(3.0)			25.7			223.8			9.2						99.4						72.7						51.8
Prior accident years before catastrophe losses											(14.0)			(20.6)			19.6			1.8			15.1						9.5						13.2						3.9
Prior accident years catastrophe losses											(12.6)			0.8			(0.9)			(0.7)			(1.5)						(1.1)						(1.1)						(0.6)
Total loss and loss expense ratio											64.6	%		20.0	%		136.0	%		318.7	%		85.5	%					183.5	%					166.3	%					126.0	%
Surety and executive risk:
Written premiums										$	27		$	26		$	28		$	26		$	24					$	50					$	78					$	104
Earned premiums											27			27			26			25			25						50						76						103
Current accident year before catastrophe losses											49.2	%		96.4	%		54.7	%		47.9	%		54.7	%					51.3	%					52.4	%					63.7	%
Current accident year catastrophe losses											-			-			-			-			-						-						-						-
Prior accident years before catastrophe losses											34.8			38.8			32.5			19.4			41.4						30.2						31.0						33.0
Prior accident years catastrophe losses											-			-			-			-			-						-						-						-
Total loss and loss expense ratio											84.0	%		135.2	%		87.2	%		67.3	%		96.1	%					81.5	%					83.4	%					96.7	%
Machinery and equipment:
Written premiums										$	9		$	11		$	9		$	9		$	9					$	18					$	27					$	38
Earned premiums											9			10			9			9			8						17						26						36
Current accident year before catastrophe losses											36.0	%		10.0	%		38.7	%		32.0	%		28.2	%					30.1	%					33.1	%					26.9	%
Current accident year catastrophe losses											-			(2.3)			2.4			0.2			0.2						0.2						0.9						0.1
Prior accident years before catastrophe losses											3.2			(7.8)			(1.6)			6.9			8.5						7.7						4.5						1.2
Prior accident years catastrophe losses											-			-			-			-			-						-						-						-
Total loss and loss expense ratio											39.2	%		(0.1)	%		39.5	%		39.1	%		36.9	%					38.0	%					38.5	%					28.2	%

 

*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.

 

 

Quarterly Property Casualty Data - Personal Lines

 

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11			9/30/11			6/30/11			3/31/11			6/30/12			6/30/11			9/30/12			9/30/11			12/31/12			12/31/11
Personal auto:
Written premiums										$	91		$	92		$	107		$	104		$	82					$	186					$	293					$	385
Earned premiums											98			95			94			90			89						179						273						368
Current accident year before catastrophe losses											73.5	%		103.4	%		66.6	%		67.3	%		68.2	%					67.7	%					67.4	%					76.7	%
Current accident year catastrophe losses											5.1			(0.9)			1.5			10.3			1.3						5.8						4.3						3.0
Prior accident years before catastrophe losses											(8.1)			4.8			1.7			(5.0)			(5.3)						(5.1)						(2.8)						(0.8)
Prior accident years catastrophe losses											(0.8)			-			(0.1)			(0.1)			(0.4)						(0.2)						(0.2)						(0.2)
Total loss and loss expense ratio											69.7	%		107.3	%		69.7	%		72.5	%		63.8	%					68.2	%					68.7	%					78.7	%
Homeowner:
Written premiums										$	77		$	79		$	87		$	78		$	68					$	146					$	233					$	312
Earned premiums											84			78			74			66			76						142						216						294
Current accident year before catastrophe losses											63.0	%		62.8	%		86.2	%		97.8	%		71.4	%					83.6	%					84.5	%					78.7	%
Current accident year catastrophe losses											60.4			(5.3)			40.3			175.4			22.1						92.7						74.7						53.6
Prior accident years before catastrophe losses											(2.9)			(13.3)			(6.1)			(0.5)			2.6						1.1						(1.4)						(4.5)
Prior accident years catastrophe losses											(9.8)			(0.2)			(1.8)			(0.1)			(5.8)						(3.1)						(2.7)						(2.0)
Total loss and loss expense ratio											110.7	%		44.0	%		118.6	%		272.6	%		90.3	%					174.3	%					155.1	%					125.8	%
Other personal:
Written premiums										$	25		$	25		$	28		$	28		$	23					$	51					$	79					$	104
Earned premiums											27			26			25			24			25						49						74						100
Current accident year before catastrophe losses											63.1	%		52.7	%		87.0	%		88.2	%		55.9	%					71.9	%					77.0	%					70.7	%
Current accident year catastrophe losses											11.7			(0.8)			10.4			34.5			3.8						19.0						16.1						11.7
Prior accident years before catastrophe losses											(22.1)			(18.8)			(36.4)			(18.4)			2.3						(7.9)						(17.6)						(17.9)
Prior accident years catastrophe losses											(3.1)			(0.1)			(0.6)			(0.5)			(0.8)						(0.6)						(0.6)						(0.5)
Total loss and loss expense ratio											49.6	%		33.0	%		60.4	%		103.8	%		61.2	%					82.4	%					74.9	%					64.0	%

 

*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.

 

 

 

Cincinnati Insurance Companies Consolidated

Loss and Loss Expense Analysis

 

(In millions)												Change in		Total
				Paid				Change in		Change in		loss		change						Loss
		Paid		loss		Total		case		IBNR		expense		in		Case		IBNR		expense		Total
		losses		expense		paid		reserves		reserves		reserves		reserves		incurred		incurred		incurred		incurred
Gross loss and loss expense incurred at March 31, 2012
Commercial casualty	$	60	$	36	$	96	$	5	$	(15)	$	(7)	$	(17)	$	65	$	(15)	$	29	$	79
Commercial property		83		7		90		3		18		-		21		86		18		7		111
Commercial auto		59		10		69		(5)		(1)		-		(6)		54		(1)		10		63
Workers' compensation		55		13		68		(9)		(7)		2		(14)		46		(7)		15		54
Specialty packages		23		4		27		(10)		4		-		(6)		13		3		4		21
Surety and executive risk		15		5		20		(3)		(3)		6		-		12		(3)		11		20
Machinery and equipment		2		-		2		-		2		-		2		2		2		-		4
Total commercial lines		297		75		372		(19)		(2)		1		(20)		278		(2)		76		352
Personal auto		58		9		67		(2)		1		1		-		56		1		10		67
Homeowners		69		5		74		4		16		(1)		19		73		16		4		93
Other personal		11		1		12		-		1		-		1		11		1		1		13
Total personal lines		138		15		153		2		18		-		20		140		18		15		173
Commercial casualty & property		3		1		4		5		5		2		12		8		5		3		16
Total excess & surplus lines		3		1		4		5		5		2		12		8		5		3		16
Total property casualty	$	438	$	91	$	529	$	(12)	$	21	$	3	$	12	$	426	$	21	$	94	$	541
Ceded loss and loss expense incurred at March 31, 2012
Commercial casualty	$	-	$	1	$	1	$	4	$	(5)	$	-	$	(1)	$	4	$	(5)	$	1	$	-
Commercial property		8		-		8		3		(2)		-		1		11		(2)		-		9
Commercial auto		-		-		-		-		(1)		-		(1)		-		(1)		-		(1)
Workers' compensation		3		-		3		-		(1)		-		(1)		3		(1)		-		2
Specialty packages		4		-		4		(6)		(1)		-		(7)		(2)		(1)		-		(3)
Surety and executive risk		-		-		-		(3)		-		-		(3)		(3)		-		-		(3)
Machinery and equipment		-		-		-		-		-		-		-		-		-		-		-
Total commercial lines		15		1		16		(2)		(10)		-		(12)		13		(10)		1		4
Personal auto		-		-		-		-		(1)		-		(1)		-		(1)		-		(1)
Homeowners		7		-		7		(2)		(5)		-		(7)		5		(5)		-		-
Other personal		1		-		1		-		(1)		-		(1)		1		(1)		-		-
Total personal lines		8		-		8		(2)		(7)		-		(9)		6		(7)		-		(1)
Commercial casualty & property		-		-		-		-		(1)		-		(1)		-		(1)		-		(1)
Total excess & surplus lines		-		-		-		-		(1)		-		(1)		-		(1)		-		(1)
Total property casualty	$	23	$	1	$	24	$	(4)	$	(18)	$	-	$	(22)	$	19	$	(18)	$	1	$	2
Net loss and loss expense incurred at March 31, 2012
Commercial casualty	$	60	$	35	$	95	$	1	$	(10)	$	(7)	$	(16)	$	61	$	(10)	$	28	$	79
Commercial property		75		7		82		-		20		-		20		75		20		7		102
Commercial auto		59		10		69		(5)		-		-		(5)		54		-		10		64
Workers' compensation		52		13		65		(9)		(6)		2		(13)		43		(6)		15		52
Specialty packages		19		4		23		(4)		5		-		1		15		5		4		24
Surety and executive risk		15		5		20		-		(3)		6		3		15		(3)		11		23
Machinery and equipment		2		-		2		-		2		-		2		2		2		-		4
Total commercial lines		282		74		356		(17)		8		(1)		(8)		265		8		75		348
Personal auto		58		9		67		(2)		2		1		1		56		2		10		68
Homeowners		62		5		67		6		21		(1)		26		68		21		4		93
Other personal		10		1		11		-		2		-		2		10		2		1		13
Total personal lines		130		15		145		4		25		-		29		134		25		15		174
Commercial casualty & property		3		1		4		5		6		2		13		8		6		3		17
Total excess & surplus lines		3		1		4		5		6		2		13		8		6		3		17
Total property casualty	$	415	$	90	$	505	$	(8)	$	39	$	3	$	34	$	407	$	39	$	93	$	539

 

 

 

 

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Consolidated

 

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11			9/30/11			6/30/11			3/31/11			6/30/12			6/30/11			9/30/12			9/30/11			12/31/12			12/31/11
Premiums
Agency renewal written premiums										$	762		$	712		$	730		$	717		$	708					$	1,425					$	2,155					$	2,867
Agency new business written premiums											108			103			115			117			102						219						334						437
Other written premiums											(27)			(55)			(54)			(66)			(31)						(97)						(151)						(206)
Reported written premiums – statutory*										$	843		$	760		$	791		$	768		$	779					$	1,547					$	2,338					$	3,098
Unearned premium change											(45)			25			(22)			(38)			(34)						(72)						(94)						(69)
Earned premiums										$	798		$	785		$	769		$	730		$	745					$	1,475					$	2,244					$	3,029
Year over year change %
Agency renewal written premiums											8	%		10	%		8	%		5	%		4	%					4	%					5	%					7	%
Agency new business written premiums											6			(4)			6			10			11						11						9						6
Other written premiums											13			(67)			(8)			(57)			(72)						(62)						(37)						(44)
Reported written premiums – statutory*											8			5			7			3			3						3						4						5
Paid losses and loss expenses
Losses paid										$	415		$	455		$	481		$	560		$	404					$	964					$	1,442					$	1,899
Loss expenses paid											90			90			85			82			85						166						251						342
Loss and loss expenses paid										$	505		$	545		$	566		$	642		$	489					$	1,130					$	1,693					$	2,241
Statutory combined ratio
Loss ratio											55.9	%		44.0	%		65.4	%		91.2	%		58.4	%					74.6	%					71.5	%					64.4	%
Allocated loss expense ratio											5.5			6.2			6.4			7.0			6.0						6.5						6.4						6.3
Unallocated loss expense ratio											6.1			5.4			7.3			5.9			6.7						6.3						6.7						6.3
Net underwriting expense ratio											31.3			32.9			31.1			31.3			32.2						31.8						31.5						31.9
Statutory combined ratio											98.8	%		88.5	%		110.2	%		135.4	%		103.3	%					119.2	%					116.1	%					108.9	%
Contribution from catastrophe losses											11.1			(2.8)			12.0			39.8			5.5						22.5						18.9						13.3
Statutory combined ratio      excluding catastrophe losses											87.7	%		91.3	%		98.2	%		95.6	%		97.8	%					96.7	%					97.2	%					95.6	%
Commission expense ratio											18.9	%		19.5	%		18.2	%		18.2	%		18.4	%					18.3	%					18.2	%					18.6	%
Other expense ratio											12.4			13.4			12.9			13.1			13.8						13.5						13.3						13.3
Statutory expense ratio											31.3	%		32.9	%		31.1	%		31.3	%		32.2	%					31.8	%					31.5	%					31.9	%
GAAP combined ratio
GAAP combined ratio											99.1	%		87.6	%		110.6	%		136.6	%		103.9	%					120.1	%					116.8	%					109.2	%
Contribution from catastrophe losses											11.1			(2.8)			12.0			39.8			5.5						22.5						18.9						13.3
GAAP combined ratio excluding catastrophe losses											88.0	%		90.4	%		98.6	%		96.8	%		98.4	%					97.6	%					97.9	%					95.9	%

 

*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.  

*nm - Not meaningful

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

 

 

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Commercial Lines

 

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11			9/30/11			6/30/11			3/31/11			6/30/12			6/30/11			9/30/12			9/30/11			12/31/12			12/31/11
Premiums
Agency renewal written premiums										$	571		$	514		$	507		$	500		$	542					$	1,042					$	1,549					$	2,063
Agency new business written premiums											75			74			81			81			71						152						233						307
Other written premiums											(20)			(42)			(41)			(44)			(25)						(69)						(110)						(152)
Reported written premiums – statutory*										$	626		$	546		$	547		$	537		$	588					$	1,125					$	1,672					$	2,218
Unearned premium change											(58)			21			10			(4)			(48)						(52)						(42)						(21)
Earned premiums										$	568		$	567		$	557		$	533		$	540					$	1,073					$	1,630					$	2,197
Year over year change %
Agency renewal written premiums											5	%		8	%		6	%		2	%		2	%					2	%					3	%					4	%
Agency new business written premiums											6			(3)			9			11			8						9						9						6
Other written premiums											20			(62)			2			(33)			(127)						(57)						(28)						(36)
Reported written premiums – statutory*											6			4			7			1			0						0						3						3
Paid losses and loss expenses
Losses paid										$	282		$	329		$	326		$	327		$	290					$	618					$	942					$	1,273
Loss expenses paid											74			75			65			63			69						131						197						271
Loss and loss expenses paid										$	356		$	404		$	391		$	390		$	359					$	749					$	1,139					$	1,544
Statutory combined ratio
Loss ratio											48.0	%		40.6	%		61.8	%		77.5	%		55.5	%					66.4	%					64.8	%					58.5	%
Allocated loss expense ratio											6.8			7.7			7.7			8.9			7.0						8.0						7.9						7.9
Unallocated loss expense ratio											6.3			1.8			7.3			4.4			6.7						5.5						6.1						5.0
Net underwriting expense ratio											31.3			33.6			32.6			32.2			32.9						32.6						32.6						32.8
Statutory combined ratio											92.4	%		83.7	%		109.4	%		123.0	%		102.1	%					112.5	%					111.4	%					104.2	%
Contribution from catastrophe losses											6.8			(2.9)			10.7			29.7			4.9						17.2						14.9						10.4
Statutory combined ratio      excluding catastrophe losses											85.6	%		86.6	%		98.7	%		93.3	%		97.2	%					95.3	%					96.5	%					93.8	%
Commission expense ratio											17.9	%		18.9	%		18.1	%		17.7	%		18.5	%					18.1	%					18.1	%					18.3	%
Other expense ratio											13.4			14.7			14.5			14.5			14.4						14.5						14.5						14.5
Statutory expense ratio											31.3	%		33.6	%		32.6	%		32.2	%		32.9	%					32.6	%					32.6	%					32.8	%
GAAP combined ratio
GAAP combined ratio											94.2	%		83.9	%		107.9	%		124.2	%		104.0	%					114.0	%					111.9	%					104.7	%
Contribution from catastrophe losses											6.8			(2.9)			10.7			29.7			4.9						17.2						14.9						10.4
GAAP combined ratio excluding catastrophe losses											87.4	%		86.8	%		97.2	%		94.5	%		99.1	%					96.8	%					97.0	%					94.3	%

 

 

*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.  

*nm - Not meaningful 

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

 

 

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Personal Lines

 

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11			9/30/11			6/30/11			3/31/11			6/30/12			6/30/11			9/30/12			9/30/11			12/31/12			12/31/11
Premiums
Agency renewal written premiums										$	175		$	185		$	209		$	205		$	156					$	361					$	570					$	755
Agency new business written premiums											24			22			25			26			22						48						73						95
Other written premiums											(6)			(11)			(12)			(21)			(5)						(26)						(38)						(49)
Reported written premiums – statutory*										$	193		$	196		$	222		$	210		$	173					$	383					$	605					$	801
Unearned premium change											16			3			(29)			(30)			17						(13)						(42)						(39)
Earned premiums										$	209		$	199		$	193		$	180		$	190					$	370					$	563					$	762
Year over year change %
Agency renewal written premiums											12	%		11	%		11	%		10	%		9	%					9	%					10	%					10	%
Agency new business written premiums											9			(4)			0			8			22						14						9						6
Other written premiums											(20)			(83)			(100)			(200)			17						(100)						(100)						(96)
Reported written premiums – statutory*											12			7			7			3			12						7						7						7
Paid losses and loss expenses
Losses paid										$	130		$	122		$	151		$	229		$	109					$	338					$	488					$	611
Loss expenses paid											15			14			18			18			15						33						51						66
Loss and loss expenses paid										$	145		$	136		$	169		$	247		$	124					$	371					$	539					$	677
Statutory combined ratio
Loss ratio											76.2	%		55.1	%		78.4	%		135.7	%		64.9	%					99.3	%					92.2	%					82.5	%
Allocated loss expense ratio											1.8			1.8			1.9			3.0			2.3						2.6						2.4						2.2
Unallocated loss expense ratio											5.6			16.0			7.0			10.7			6.9						8.8						8.2						10.2
Net underwriting expense ratio											31.2			31.0			27.4			29.0			30.3						29.5						28.7						29.3
Statutory combined ratio											114.8	%		103.9			114.7	%		178.4	%		104.4	%					140.2	%					131.5	%					124.2	%
Contribution from catastrophe losses											23.5			(2.7)			16.8			73.4			7.4						39.4						31.7						22.7
Statutory combined ratio      excluding catastrophe losses											91.3	%		106.6	%		97.9	%		105.0	%		97.0	%					100.8	%					99.8	%					101.5	%
Commission expense ratio											21.3	%		20.4	%		17.6	%		18.7	%		17.9	%					18.3	%					18.1	%					18.6	%
Other expense ratio											9.9			10.6			9.8			10.3			12.4						11.2						10.7						10.7
Statutory expense ratio											31.2	%		31.0	%		27.4	%		29.0	%		30.3	%					29.5	%					28.8	%					29.3	%
GAAP combined ratio
GAAP combined ratio											110.9	%		99.5	%		119.7	%		179.2	%		101.4	%					139.2	%					132.6	%					123.9	%
Contribution from catastrophe losses											23.5			(2.7)			16.8			73.4			7.4						39.4						31.7						22.7
GAAP combined ratio excluding catastrophe losses											87.4	%		102.2	%		102.9	%		105.8	%		94.0	%					99.8	%					100.9	%					101.2	%

  

 

*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. . Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.

*nm - Not meaningful

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

 

 

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Excess & Surplus Lines

 

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11			9/30/11			6/30/11			3/31/11			6/30/12			6/30/11			9/30/12			9/30/11			12/31/12			12/31/11
Premiums
Agency renewal written premiums										$	16		$	13		$	14		$	12		$	10					$	22					$	36					$	49
Agency new business written premiums											9			7			9			10			9						19						28						35
Other written premiums											(1)			(2)			(1)			(1)			(1)						(2)						(3)						(5)
Reported written premiums – statutory*										$	24		$	18		$	22		$	21		$	18					$	39					$	61					$	79
Unearned premium change											(3)			1			(3)			(4)			(3)						(7)						(10)						(9)
Earned premiums										$	21		$	19		$	19		$	17		$	15					$	32					$	51					$	70
Year over year change %
Agency renewal written premiums											60	%		63	%		56	%		100	%		67	%					83	%					71	%					69	%
Agency new business written premiums											0			(13)			(10)			11			13						12						4						0
Other written premiums											0			(100)			50			50			0						33						40						17
Reported written premiums – statutory*											33			20			29			62			38						50						42						36
Paid losses and loss expenses
Losses paid										$	3		$	3		$	3		$	4		$	4					$	8					$	12					$	15
Loss expenses paid											1			2			2			1			1						2						3						5
Loss and loss expenses paid										$	4		$	5		$	5		$	5		$	5					$	10					$	15					$	20
Statutory combined ratio
Loss ratio											65.7	%		33.9	%		41.1	%		49.6	%		77.6	%					62.8	%					54.8	%					48.9	%
Allocated loss expense ratio											10.6			5.6			11.2			(12.8)			19.1						2.2						5.5						5.5
Unallocated loss expense ratio											5.3			2.9			9.9			4.7			6.1						5.3						7.0						5.9
Net underwriting expense ratio											31.9			31.8			30.7			31.6			27.6						29.8						30.1						30.5
Statutory combined ratio											113.5	%		74.2	%		92.9	%		73.1	%		130.4	%					100.1	%					97.4	%					90.8	%
Contribution from catastrophe losses											3.7			(0.3)			2.5			4.4			2.8						3.6						3.2						2.2
Statutory combined ratio      excluding catastrophe losses											109.8	%		74.5	%		90.4	%		68.7	%		127.6	%					96.5	%					94.2	%					88.6	%
Commission expense ratio											26.5	%		26.0	%		25.1	%		24.5	%		22.2	%					23.5	%					24.1	%					24.5	%
Other expense ratio											5.4			5.8			5.6			7.1			5.4						6.3						6.0						6.0
Statutory expense ratio											31.9	%		31.8	%		30.7	%		31.6	%		27.6	%					29.8	%					30.1	%					30.5	%
GAAP combined ratio
GAAP combined ratio											113.6	%		74.8	%		93.6	%		74.7	%		133.0	%					102.1	%					99.0	%					92.2	%
Contribution from catastrophe losses											3.7			(0.3)			2.5			4.4			2.8						3.6						3.2						2.2
GAAP combined ratio excluding catastrophe losses											109.9	%		75.1	%		91.1	%		70.3	%		130.2	%					98.5	%					95.8	%					90.0	%

 

*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.

*nm - Not meaningful

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

 

 

The Cincinnati Life Insurance Company

Statutory Statements of Income

 

		For the Three Months Ended March 31,
(Dollars in millions)		2012				2011				Change				% Change
Net premiums written		$	64			$	102			$	(38	)			(37	)
Net investment income			34				34				-				nm
Commissions and expense allowances on reinsurance ceded			2				2				-				nm
Income from fees associated with Separate Accounts			-				1				(1	)			-
Total revenues		$	100			$	139			$	(39	)			(28	)
Death benefits and matured endowments		$	17			$	16			$	1				6
Annuity benefits			13				13				-				nm
Surrender benefits and group conversions			6				6				-				nm
Interest and adjustments on deposit-type contract funds			3				3				-				nm
Increase in aggregate reserves for life and accident and health contracts			43				77				(34	)			(44	)
Total benefit expenses		$	82			$	115			$	(33	)			(29	)
Commissions		$	10			$	12			$	(2	)			(17	)
General insurance expenses and taxes			11				10				1				10
Total operating expenses		$	21			$	22			$	(1	)			(5	)
Federal and foreign income tax benefit			(1	)			8				(9	)			nm
Net loss from operations before realized capital gains		$	(2	)		$	(7	)		$	4				71
Net realized losses net of capital gains tax			-				(20	)			20				nm
Net loss (statutory)		$	(2	)		$	(26	)		$	24				92

 

*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.  

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.