Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending September 30, 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 October 24, 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

Third Quarter 2012

 

	Page
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3
Consolidated
Quick Reference	4
CFC and Subsidiaries Consolidation – Nine Months Ended September 30, 2012	5
CFC and Subsidiaries Consolidation – Three Months Ended September 30, 2012	6
CFC Insurance Subsidiaries – Selected Balance Sheet Data	7
Consolidated Property Casualty Insurance Operations
Statutory Statements of Income	8
Consolidated Cincinnati Insurance Companies – Losses Incurred Detail	9
Consolidated Cincinnati Insurance Companies – Loss Ratio Detail	10
Consolidated Cincinnati Insurance Companies – Loss Claim Count Detail	11
Direct Written Premiums by Line of Business and State	12
Quarterly Property Casualty Data – Commercial Lines of Business	13
Quarterly Property Casualty Data – Personal Lines of Business	14
Loss and Loss Expense Analysis – Nine Months Ended September 30, 2012	15
Loss and Loss Expense Analysis – Three Months Ended September 30, 2012	16
Reconciliation Data
Quarterly Property Casualty Data – Consolidated	17
Quarterly Property Casualty Data – Commercial Lines	18
Quarterly Property Casualty Data – Personal Lines	19
Quarterly Property Casualty Data – Excess & Surplus Lines	20
Life Insurance Operations
Statutory Statements of Income	21

 

 

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.

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

Cincinnati Financial Corporation

Quick Reference - Third Quarter 2012

(all data shown is for the three months ended or as of September 30, 2012)

 

				Year over year						Year over year change %
		9/30/2012		change %				9/30/2012
Revenues:						Benefits and expenses:
Commercial lines net written premiums	$	619		13		Commercial lines loss and loss expenses	$	352		(18)
Personal lines net written premiums		253		14		Personal lines loss and loss expenses		152		(10)
Excess & surplus lines net written premiums		27		23		Excess & surplus lines loss and loss expenses		21		75
Property casualty net written premiums		899		14		Life and health contract holders' benefits incurred		46		(6)
Life and accident and health net written premiums		47		6		Underwriting, acquisition and insurance expenses		296		14
Annuity net written premiums		12		(33)		Interest expenses		14		8
Life, annuity and accident and health net written premiums		59		(5)		Other operating expenses		2		(50)
Commercial lines net earned premiums		607		9		Total benefits & expenses		883		(5)
Personal lines net earned premiums		219		13		Income before income taxes		152		nm
Excess & surplus lines net earned premiums		25		32		Total income tax		41		nm
Property casualty net earned premiums		851		11
Fee revenue		1		0		Balance Sheet:
Life and accident and health net earned premiums		38		(12)
Investment income		132		2		Fixed maturity investments	$	9,116
Realized gains on investments		10		nm		Equity securities		3,349
Other revenue		3		0		Other invested assets		68
Total revenues		1,035		10		Total invested assets	$	12,533
						Equity in net assets of subsidiaries	$	5,011
						Loss and loss expense reserves	$	4,344
						Life policy and investment contract reserves		2,285
Income:						Long-term debt and capital lease obligation		828
						Shareholders' equity		5,359
Operating income	$	105		425
Net realized investment gains and losses		6		nm		Key ratios:
Net income		111		484
						Commercial lines GAAP combined ratio		90.2	%
						Personal lines GAAP combined ratio		105.7
						Excess & surplus lines GAAP combined ratio		111.5
						Property casualty GAAP combined ratio		94.8
Per share (diluted):
						Commercial lines STAT combined ratio		91.1	%
Operating income	$	0.64		392		Personal lines STAT combined ratio		98.3
Net realized investment gains and losses		0.04		nm		Excess & surplus lines STAT combined ratio		113.1
Net income		0.68		467		Property casualty STAT combined ratio		93.5
Book value		32.95		12
Weighted average shares in thousands		163,857		0		Value creation ratio		5.4	%

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

Cincinnati Financial Corporation

Consolidated Statements of Income for the Nine Months Ended September 30, 2012

 

(In millions)		CFC				CONSOL P&C				CLIC				CFC-I				ELIM				Total
Revenues:
Premiums earned:
Property casualty		$	-			$	2,612			$	-			$	-			$	(1	)		$	2,611
Life			-				-				166				-				-				166
Accident health			-				-				5				-				-				5
Premiums ceded			-				(137	)			(40	)			-				-				(177	)
Total earned premium			-				2,475				131				-				(1	)			2,605
Investment income			30				262				103				-				-				395
Realized gain on investments			17				6				5				1				-				29
Fee revenue			-				4				-				-				-				4
Other revenue			11				2				1				5				(11	)			8
Total revenues		$	58			$	2,749			$	240			$	6			$	(12	)		$	3,041
Benefits & expenses:
Losses & policy benefits		$	-			$	1,749			$	172			$	-			$	-			$	1,921
Reinsurance recoveries			-				(45	)			(36	)			-				-				(81	)
Underwriting, acquisition and insurance expenses			-				798				59				-				-				857
Other operating expenses			20				-				-				2				(12	)			10
Interest expense			40				-				-				1				-				41
Total expenses		$	60			$	2,502			$	195			$	3			$	(12	)		$	2,748
Income (loss) before income taxes		$	(2	)		$	247			$	45			$	3			$	-			$	293
Provision (benefit) for income taxes:
Current operating income		$	(11	)		$	60			$	-			$	1			$	-			$	50
Capital gains/losses			6				2				2				-				-				10
Deferred			-				(10	)			14				-				-				4
Total provision (benefit) for income taxes		$	(5	)		$	52			$	16			$	1			$	-			$	64
Operating income (loss)		$	(8	)		$	191			$	26			$	1			$	-			$	210
Net income - current year		$	3			$	195			$	29			$	2			$	-			$	229
Net income - prior year		$	3			$	18			$	7			$	1			$	1			$	30

 

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

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Three Months Ended September 30, 2012

 

(In millions)		CFC				CONSOL P&C				CLIC				CFC-I				ELIM				Total
Revenues:
Premiums earned:
Property casualty		$	-			$	898			$	-			$	-			$	-			$	898
Life			-				-				51				-				-				51
Accident health			-				-				2				-				-				2
Premiums ceded			-				(48	)			(14	)			-				-				(62	)
Total earned premium			-				850				39				-				-				889
Investment income			10				87				35				-				-				132
Realized gain on investments			2				4				4				-				-				10
Fee revenue			-				1				-				-				-				1
Other revenue			4				-				1				2				(4	)			3
Total revenues		$	16			$	942			$	79			$	2			$	(4	)		$	1,035
Benefits & expenses:
Losses & policy benefits		$	-			$	560			$	62			$	-			$	-			$	622
Reinsurance recoveries			-				(35	)			(16	)			-				-				(51	)
Underwriting, acquisition and insurance expenses			-				282				14				-				-				296
Other operating expenses			6				-				-				-				(4	)			2
Interest expense			14				-				-				-				-				14
Total expenses		$	20			$	807			$	60			$	-			$	(4	)		$	883
Income before income taxes		$	(4	)		$	135			$	19			$	2			$	-			$	152
Provision (benefit) for income taxes:
Current operating income		$	(8	)		$	37			$	1			$	-			$	-			$	30
Capital gains/losses			1				2				1				-				-				4
Deferred			4				(1	)			4				-				-				7
Total provision (benefit) for income taxes		$	(3	)		$	38			$	6			$	-			$	-			$	41
Operating income (loss)		$	(2	)		$	95			$	10			$	2			$	-			$	105
Net income - current year		$	(1	)		$	97			$	13			$	2			$	-			$	111
Net income - prior year		$	3			$	10			$	6			$	-			$	-			$	19

 

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

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

Cincinnati Financial Corporation Insurance Subsidiaries

Selected Balance Sheet Data

 

(In millions)
		12/31/12				9/30/12				6/30/12				3/31/12				12/31/11				9/30/11				6/30/11				3/31/11
Cincinnati Insurance Consolidated
Fixed maturities (fair value)						$	6,082			$	6,067			$	6,004			$	5,917			$	5,975			$	5,954			$	5,850
Equities (fair value)							2,355				2,246				2,264				2,131				1,865				2,113				2,203
Fixed maturities - pretax net unrealized gain							566				502				482				461				439				388				320
Equities - pretax net unrealized gain							769				669				731				594				361				631				670
Loss and loss expense reserves - STAT							3,938				4,006				3,938				3,906				4,013				3,971				3,853
Equity GAAP							4,965				4,794				4,864				4,740				4,507				4,686				4,706
Surplus - STAT							3,815				3,722				3,835				3,747				3,513				3,743				3,833
The Cincinnati Life Insurance Company
Fixed maturities (fair value)						$	2,911			$	2,821			$	2,736			$	2,629			$	2,652			$	2,528			$	2,449
Equities (fair value)							17				17				17				16				28				37				102
Fixed maturities - pretax net unrealized gain							289				242				223				195				197				174				149
Equities - pretax net unrealized gain							7				7				7				6				12				19				25
Equity - GAAP							850				811				792				770				766				779				752
Surplus - STAT							277				281				281				281				268				309				308

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

Consolidated Cincinnati Insurance Companies

Statutory Statements of Income

 

	For the Three Months Ended September 30,							For the Nine Months Ended September 30,
(Dollars in millions)	2012		2011		Change		% Change	2012		2011		Change		% Change
Underwriting income
Net premiums written	$	898	$	791	$	107	14	$	2,645	$	2,338	$	307	13
Unearned premiums increase		47		22		25	114		170		94		76	81
Earned premiums	$	851	$	769	$	82	11	$	2,475	$	2,244	$	231	10
Losses incurred	$	450	$	503	$	(53)	(11)	$	1,446	$	1,604	$	(158)	(10)
Allocated loss expenses incurred		31		50		(19)	(38)		113		145		(32)	(22)
Unallocated loss expenses incurred		44		56		(12)	(21)		145		149		(4)	(3)
Other underwriting expenses incurred		281		242		39	16		811		726		85	12
Workers compensation dividend incurred		5		3		2	67		11		11		-	0
Total underwriting deductions	$	811	$	854	$	(43)	(5)	$	2,526	$	2,635	$	(109)	(4)
Net underwriting profit (loss)	$	40	$	(85)	$	125	nm	$	(51)	$	(391)	$	340	87
Investment income
Gross investment income earned	$	90	$	89	$	1	1	$	270	$	272	$	(2)	(1)
Net investment income earned		89		88		1	1		266		268		(2)	(1)
Net realized capital gains (losses)		6		(2)		8	nm		6		58		(52)	(90)
Net investment gains (excl. subs)	$	95	$	86	$	9	10	$	272	$	326	$	(54)	(17)
Dividend from subsidiary		-		25		(25)	-		-		25		(25)	nm
Net investment gains (net of tax)	$	95	$	111	$	(16)	(14)	$	272	$	351	$	(79)	(23)
Other income	$	1	$	2	$	(1)	(50)	$	4	$	4	$	-	0
Net income (loss) before federal income taxes	$	136	$	28	$	108	386	$	225	$	(36)	$	261	nm
Federal and foreign income taxes incurred	$	35	$	16	$	19	119	$	57	$	(42)	$	99	nm
Net income (statutory)	$	101	$	12	$	89	742	$	168	$	6	$	162	nm

 

*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.

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

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			$	21	$	4	$	10	$	21	$	18	$	5	$	11	$	15	$	16	$	36	$	34			$	56
New losses $1,000,000-$4,000,000				39		47		31		47		45		33		49		78		83		117		128				173
New losses $250,000-$1,000,000				50		58		43		53		59		52		55		102		106		152		165				217
Case reserve development above $250,000				60		55		67		68		57		51		34		122		85		182		142				210
Large losses subtotal			$	170	$	164	$	151	$	189	$	179	$	141	$	149	$	317	$	290	$	487	$	469			$	656
IBNR incurred				(25)		7		19		(11)		-		18		33		26		51		2		51				39
Catastrophe losses incurred				62		146		89		(25)		90		289		40		233		329		295		419				395
Remaining incurred				242		234		187		194		234		218		213		421		430		662		664				859
Total losses incurred			$	449	$	551	$	446	$	347	$	503	$	666	$	435	$	997	$	1,100	$	1,446	$	1,603			$	1,949
Commercial Lines
New losses greater than $4,000,000			$	21	$	4	$	10	$	21	$	18	$	6	$	11	$	15	$	16	$	36	$	34			$	56
New losses $1,000,000-$4,000,000				30		33		24		38		40		30		40		56		70		86		110				148
New losses $250,000-$1,000,000				33		36		31		35		45		39		37		68		77		101		122				156
Case reserve development above $250,000				56		51		64		58		52		46		31		115		77		171		129				187
Large losses subtotal			$	140	$	124	$	129	$	152	$	155	$	121	$	119	$	254	$	240	$	394	$	395			$	547
IBNR incurred				(21)		6		-		(5)		1		11		24		6		35		(14)		36				31
Catastrophe losses incurred				43		89		39		(18)		58		157		26		127		183		170		241				223
Remaining incurred				138		132		105		101		130		124		131		237		255		374		385				486
Total losses incurred			$	300	$	351	$	273	$	230	$	344	$	413	$	300	$	624	$	713	$	924	$	1,057			$	1,287
Personal Lines
New losses greater than $4,000,000			$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-			$	-
New losses $1,000,000-$4,000,000				9		13		5		9		4		3		9		18		13		27		17				25
New losses $250,000-$1,000,000				14		18		8		13		11		10		14		26		23		40		35				48
Case reserve development above $250,000				1		3		2		8		4		4		3		5		7		6		11				19
Large losses subtotal			$	24	$	34	$	15	$	30	$	19	$	17	$	26	$	49	$	43	$	73	$	63			$	92
IBNR incurred				(10)		(4)		14		(4)		(3)		4		4		11		9		-		6				1
Catastrophe losses incurred				18		56		49		(6)		32		131		14		105		145		123		177				171
Remaining incurred				101		100		81		90		103		91		80		181		170		283		273				364
Total losses incurred			$	133	$	186	$	159	$	110	$	151	$	243	$	124	$	346	$	367	$	479	$	519			$	628
Excess & Surplus Lines
New losses greater than $4,000,000			$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-			$	-
New losses $1,000,000-$4,000,000				1		1		2		-		1		-		-		3		-		4		1				-
New losses $250,000-$1,000,000				3		4		4		5		3		2		4		8		6		11		8				13
Case reserve development above $250,000				2		1		1		2		1		1		-		3		1		5		2				4
Large losses subtotal			$	6	$	6	$	7	$	7	$	5	$	3	$	4	$	14	$	7	$	20	$	11			$	17
IBNR incurred				6		5		5		(2)		2		3		5		9		7		16		9				7
Catastrophe losses incurred				-		1		1		(1)		-		1		-		2		1		2		1				1
Remaining incurred				3		2		1		3		1		2		2		3		5		5		6				9
Total losses incurred			$	15	$	14	$	14	$	7	$	8	$	9	$	11	$	28	$	20	$	43	$	27			$	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.

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

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			2.5	%	0.5	%	1.3	%	2.8	%	2.3	%	0.8	%	1.4	%	0.9	%	1.1	%	1.4	%	1.5	%			1.9	%
New losses $1,000,000-$4,000,000			4.6		5.7		3.9		5.7		5.8		4.6		6.7		4.8		5.6		4.7		5.7				5.7
New losses $250,000-$1,000,000			5.9		7.1		5.5		6.6		7.7		7.0		7.3		6.2		7.2		6.2		7.4				7.2
Case reserve development above $250,000			7.0		6.7		8.3		8.7		7.5		6.9		4.6		7.5		5.8		7.4		6.3				6.9
Large losses subtotal			20.0	%	20.0	%	19.0	%	23.8	%	23.3	%	19.3	%	20.0	%	19.4	%	19.7	%	19.7	%	20.9	%			21.7	%
IBNR incurred			(2.9)		0.9		2.3		(1.2)		0.1		2.5		4.4		1.6		3.4		0.1		2.3				1.4
Total catastrophe losses incurred			7.3		17.6		11.1		(3.0)		11.7		39.6		5.5		14.5		22.3		11.9		18.7				13.1
Remaining incurred			28.4		28.2		23.5		24.5		30.3		29.8		28.5		25.9		29.2		26.7		29.6				28.2
Total loss ratio			52.8	%	66.7	%	55.9	%	44.1	%	65.4	%	91.2	%	58.4	%	61.4	%	74.6	%	58.4	%	71.5	%			64.4	%
Commercial Lines
New losses greater than $4,000,000			3.4	%	0.7	%	1.9	%	3.9	%	3.2	%	1.1	%	1.9	%	1.3	%	1.5	%	2.0	%	2.1	%			2.6	%
New losses $1,000,000-$4,000,000			4.9		5.5		4.2		6.5		7.3		5.5		7.5		4.9		6.5		4.9		6.8				6.7
New losses $250,000-$1,000,000			5.5		6.2		5.5		6.0		8.1		7.4		6.9		5.9		7.1		5.8		7.5				7.1
Case reserve development above $250,000			9.3		8.7		11.2		10.3		9.3		8.7		5.7		9.9		7.2		9.7		7.9				8.5
Large losses subtotal			23.1	%	21.1	%	22.8	%	26.7	%	27.9	%	22.7	%	22.0	%	22.0	%	22.3	%	22.4	%	24.3	%			24.9	%
IBNR incurred			(3.4)		1.1		0.0		(0.8)		0.2		2.0		4.4		0.5		3.3		(0.8)		2.2				1.4
Total catastrophe losses incurred			7.1		15.1		6.8		(3.2)		10.4		29.6		4.9		11.0		17.1		9.6		14.7				10.2
Remaining incurred			22.7		22.3		18.4		17.8		23.3		23.3		24.2		20.5		23.7		21.2		23.6				22.1
Total loss ratio			49.5	%	59.6	%	48.0	%	40.5	%	61.8	%	77.6	%	55.5	%	54.0	%	66.4	%	52.4	%	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	%	0.0	%	0.0	%	0.0	%			0.0	%
New losses $1,000,000-$4,000,000			3.7		6.4		2.3		3.9		2.2		2.0		4.8		4.4		3.5		4.1		3.0				3.3
New losses $250,000-$1,000,000			6.1		8.4		4.0		6.9		6.0		5.4		7.1		6.2		6.2		6.2		6.1				6.3
Case reserve development above $250,000			0.5		1.2		0.9		4.2		1.9		2.3		1.7		1.1		2.0		0.9		2.0				2.5
Large losses subtotal			10.3	%	16.0	%	7.2	%	15.0	%	10.1	%	9.7	%	13.6	%	11.7	%	11.7	%	11.2	%	11.1	%			12.1	%
IBNR incurred			(4.6)		(1.6)		6.6		(1.6)		(1.5)		2.4		2.3		2.5		2.3		0.1		1.0				0.3
Total catastrophe losses incurred			8.8		26.2		23.3		(3.0)		16.4		73.0		7.4		24.8		39.2		19.3		31.4				22.5
Remaining incurred			46.2		46.6		39.1		44.7		53.5		50.6		41.6		42.8		46.0		44.0		48.6				47.6
Total loss ratio			60.7	%	87.2	%	76.2	%	55.1	%	78.5	%	135.7	%	64.9	%	81.8	%	99.2	%	74.6	%	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	%	0.0	%	0.0	%	0.0	%			0.0	%
New losses $1,000,000-$4,000,000			4.3		4.4		11.1		0.0		0.0		0.0		0.0		7.7		0.0		6.5		0.0				0.0
New losses $250,000-$1,000,000			15.0		16.5		17.7		22.6		13.5		12.4		25.8		17.1		18.7		16.3		16.8				18.4
Case reserve development above $250,000			8.8		6.4		5.6		7.6		9.3		2.4		2.7		6.0		2.6		7.0		5.1				5.8
Large losses subtotal			28.1	%	27.3	%	34.4	%	30.2	%	22.8	%	14.8	%	28.5	%	30.8	%	21.3	%	29.8	%	21.9	%			24.2	%
IBNR incurred			25.9		21.0		22.2		(10.4)		12.5		17.1		26.1		21.6		21.3		23.2		18.1				10.1
Total catastrophe losses incurred			0.5		3.4		3.7		(0.4)		2.4		4.2		2.8		3.5		3.5		2.4		3.1				2.2
Remaining incurred			10.0		8.1		5.4		14.5		3.4		13.4		20.2		6.8		16.6		7.9		11.8				12.5
Total loss ratio			64.5	%	59.8	%	65.7	%	33.9	%	41.1	%	49.5	%	77.6	%	62.7	%	62.7	%	63.3	%	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.

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

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			4		1		2		4		3		1		2		3		3		7		6				10
New losses $1,000,000-$4,000,000			27		29		19		23		25		18		30		48		48		75		73				96
New losses $250,000-$1,000,000			116		130		101		115		129		122		122		231		244		347		373				488
Case reserve development above $250,000			86		78		86		108		84		81		68		164		149		250		233				341
Large losses total			233		238		208		250		241		222		222		446		444		679		685				935
Commercial Lines
New losses greater than $4,000,000			4		1		2		4		3		1		2		3		3		7		6				10
New losses $1,000,000-$4,000,000			21		18		15		18		21		15		24		33		39		54		60				78
New losses $250,000-$1,000,000			78		77		70		76		98		97		85		147		182		225		280				356
Case reserve development above $250,000			79		64		81		90		72		70		59		145		129		224		201				291
Large losses total			182		160		168		188		194		183		170		328		353		510		547				735
Personal Lines
New losses greater than $4,000,000			-		-		-		-		-		-		-		-		-		-		-				-
New losses $1,000,000-$4,000,000			5		10		2		5		4		3		6		12		9		17		13				18
New losses $250,000-$1,000,000			31		44		21		31		26		20		29		65		49		96		75				106
Case reserve development above $250,000			3		8		4		15		9		10		8		12		18		15		27				42
Large losses total			39		62		27		51		39		33		43		89		76		128		115				166
Excess & Surplus Lines
New losses greater than $4,000,000			-		-		-		-		-		-		-		-		-		-		-				-
New losses $1,000,000-$4,000,000			1		1		2		-		-		-		-		3		-		4		-				-
New losses $250,000-$1,000,000			7		9		10		8		5		5		8		19		13		26		18				26
Case reserve development above $250,000			4		6		1		3		3		1		1		7		2		11		5				8
Large losses total			12		16		13		11		8		6		9		29		15		41		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.

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

Consolidated Cincinnati Insurance Companies Agency Direct Written Premiums by Agency State by Line of Business for the Nine Months Ended September 30, 2012

  

(Dollars in millions)		Commercial Lines																												Personal Lines																Consolidated								Comm'l				Personal				E & S				Consol
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 Total				2011 Total				Change %				Change %				Change %				Change %
OH		$	107.5			$	79.6			$	50.7			$	-			$	15.2			$	18.6			$	4.5			$	97.6			$	77.7			$	26.9			$	8.2			$	485.9			$	452.6				9.3				4.9				7.4				7.4
IL			45.3				33.5				21.3				39.8				9.6				5.4				2.6				24.4				20.1				6.4				5.5				214.1				201.2				4.5				10.6				29.7				6.4
IN			36.6				30.9				18.4				22.6				6.0				5.1				2.5				25.6				25.6				6.5				7.0				186.9				169.3				10.7				8.7				19.5				10.4
PA			37.7				26.1				25.8				37.8				7.8				5.4				1.8				7.6				5.9				3.0				3.2				162.4				149.0				7.8				16.1				30.0				8.9
GA			21.5				19.4				15.5				9.2				6.3				4.6				1.1				26.7				26.6				7.7				5.9				144.5				129.4				12.8				7.9				44.1				11.7
NC			25.5				24.2				15.1				13.9				11.8				6.2				1.6				16.5				12.1				4.7				2.9				134.6				119.6				7.3				31.6				18.9				12.7
MI			27.1				18.0				12.6				14.1				7.4				4.7				1.6				18.4				15.6				3.3				3.7				126.5				106.9				12.3				33.0				42.7				18.5
KY			16.8				19.4				11.8				2.4				5.1				2.4				1.1				19.5				16.7				4.2				2.9				102.4				95.2				7.0				7.2				27.7				7.6
TN			20.1				18.8				13.1				7.1				8.1				4.0				1.3				10.3				11.4				3.7				1.9				100.0				88.2				10.7				19.3				61.5				13.4
VA			22.1				18.8				14.0				13.6				4.0				5.3				1.2				8.1				7.0				2.6				2.9				99.5				94.1				3.7				9.6				53.6				5.7
WI			21.1				15.8				9.4				23.3				3.1				2.3				1.5				7.0				6.7				2.8				2.3				95.3				83.2				16.5				4.3				38.3				14.6
AL			14.9				16.2				6.9				0.8				6.8				2.3				0.9				14.0				22.5				5.0				3.0				93.2				83.2				15.6				7.2				27.6				12.0
MO			18.1				16.8				10.1				8.9				5.0				2.3				1.1				4.0				5.7				1.3				3.5				76.7				69.5				8.8				16.2				24.8				10.4
MN			17.6				14.3				7.1				6.5				2.7				1.9				1.1				9.3				8.8				3.4				2.4				75.2				62.6				12.5				42.0				29.8				20.1
IA			14.0				11.6				6.7				15.2				2.9				3.1				1.2				3.8				3.9				1.4				1.4				65.2				62.2				3.6				9.2				41.5				5.0
TX			22.1				15.8				13.2				1.8				0.9				1.5				1.2				-				-				-				6.3				62.8				46.5				37.1				(16.3	)			18.5				34.9
FL			16.3				14.4				5.9				1.0				0.8				1.5				0.6				6.4				8.5				1.7				2.5				59.5				63.3				(7.1	)			(6.4	)			24.0				(5.9	)
NY			25.1				8.6				8.6				1.6				1.0				2.3				0.7				0.4				0.2				-				0.9				49.4				45.2				8.8				(85.3	)			34.5				7.9
MD			12.2				6.8				9.1				8.3				1.0				2.0				0.5				2.1				2.3				0.7				1.3				46.2				39.1				15.3				48.1				20.1				18.3
AR			7.0				10.4				4.7				1.9				4.4				1.1				0.6				4.0				4.4				1.2				1.6				41.3				35.7				11.2				32.7				29.5				16.2
KS			6.4				8.4				3.7				5.1				2.6				1.3				0.6				3.8				5.1				1.1				0.9				38.9				36.5				5.0				7.8				63.0				6.6
UT			9.4				4.8				6.1				-				0.8				2.3				0.3				5.1				2.3				0.5				1.1				32.6				26.8				18.6				33.2				19.5				21.8
SC			8.0				6.7				5.1				2.8				1.8				1.5				0.3				2.7				1.9				0.6				0.8				32.1				28.3				9.1				41.7				36.7				14.0
AZ			9.1				6.0				7.5				1.8				0.7				0.8				0.4				2.1				1.6				0.6				1.2				31.8				26.6				15.3				53.6				20.4				19.5
MT			9.2				5.5				5.0				-				0.8				0.5				0.4				1.7				1.5				0.4				0.3				25.3				23.5				6.5				16.2				(7.3	)			7.6
NE			5.5				5.6				2.8				5.2				1.2				0.8				0.3				0.6				0.7				0.2				1.0				24.0				20.9				15.5				1.6				27.1				15.0
ID			7.6				4.7				4.7				0.1				0.7				0.9				0.3				1.7				1.1				0.3				0.6				22.7				19.2				16.4				25.7				28.7				17.8
WV			6.4				4.6				4.4				1.4				1.9				0.5				0.3				-				0.4				0.1				1.6				21.7				17.6				24.2				(4.7	)			22.2				23.1
VT			3.0				2.8				2.1				5.2				0.7				0.8				0.2				1.0				1.0				0.3				0.6				17.7				16.3				7.9				7.0				55.4				9.0
CO			5.6				5.3				3.7				0.3				-				0.9				0.4				-				0.2				-				0.8				17.1				12.3				37.9				24.7				59.0				38.6
ND			5.1				3.5				2.8				-				1.0				0.5				0.3				0.5				0.5				0.2				0.3				14.6				12.2				20.0				10.8				48.9				19.6
NH			2.1				1.8				1.1				1.6				0.4				0.4				0.1				1.3				1.2				0.4				0.4				10.9				10.5				(7.1	)			48.9				6.2				3.9
WA			3.4				1.7				2.6				-				-				0.6				0.2				-				-				-				0.8				9.4				7.8				20.7				24.9				14.5				20.1
SD			2.2				1.9				1.2				2.3				0.4				0.4				0.1				-				-				-				0.4				9.0				7.6				18.0				(10.2	)			20.8				18.0
DE			2.7				1.9				1.6				1.8				0.3				0.4				0.2				-				-				-				0.1				8.9				7.3				21.0				14.2				nm				21.9
NM			2.9				1.4				1.6				0.7				0.1				1.1				0.1				-				-				-				0.4				8.3				5.8				42.9				(25.6	)			12.6				41.1
OR			2.0				1.2				1.4				0.1				-				0.5				0.1				-				-				-				1.3				6.7				3.7				65.2				(27.5	)			166.2				78.4
WY			1.2				0.9				0.5				-				-				0.3				-				-				-				-				0.3				3.2				2.5				29.1				(5.8	)			34.6				29.4
CT			0.9				0.9				0.5				0.2				-				0.2				0.1				-				-				0.2				0.2				3.2				1.6				102.8				10.5				57.4				98.7
All Other			2.5				1.9				1.8				3.5				0.6				1.3				0.1				-				-				-				0.9				12.5				10.2				18.1				(24.0	)			209.3				23.0
Total		$	623.7			$	491.1			$	340.3			$	262.0			$	123.7			$	97.8			$	33.5			$	325.9			$	299.6			$	91.3			$	83.3			$	2,772.3			$	2,493.3				10.4				11.5				29.0				11.2
Other Direct			-				0.8				-				2.6				-				-				-				-				0.1				-				-				3.6				3.2				15.9				(32.1	)			nm				12.6
Total Direct		$	623.7			$	491.9			$	340.3			$	264.6			$	123.7			$	97.8			$	33.5			$	325.9			$	299.7			$	91.3			$	83.3			$	2,775.9			$	2,496.5				10.4				11.5				29.0				11.2

 

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.

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

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				$	200		$	202		$	202		$	169		$	175		$	177		$	189		$	404		$	366		$	604		$	541					$	710
Earned premiums					197			191			181			179			180			180			172			372			352			569			532						711
Current accident year before catastrophe losses					52.1	%		67.2	%		70.2	%		70.4	%		64.1	%		66.0	%		78.8	%		68.7	%		72.3	%		63.0	%		69.5	%					69.7	%
Current accident year catastrophe losses					-			-			-			-			-			-			-			-			-			-			-						-
Prior accident years before catastrophe losses					(12.9)			(29.2)			(26.7)			11.6			(26.7)			(27.2)			(32.3)			(28.0)			(29.7)			(22.8)			(28.7)						(18.5)
Prior accident years catastrophe losses					-			-			-			-			-			-			-			-			-			-			-						-
Total loss and loss expense ratio					39.2	%		38.0	%		43.5	%		82.0	%		37.4	%		38.8	%		46.5	%		40.7	%		42.6	%		40.2	%		40.8	%					51.2	%
Commercial property:
Written premiums				$	150		$	146		$	141		$	125		$	132		$	123		$	132		$	287		$	255		$	437		$	387					$	512
Earned premiums					138			134			131			128			128			115			126			265			241			403			369						497
Current accident year before catastrophe losses					45.3	%		55.3	%		57.2	%		31.1	%		77.6	%		76.8	%		64.8	%		56.2	%		70.5	%		52.5	%		73.0	%					62.1	%
Current accident year catastrophe losses					29.6			56.7			31.4			(5.3)			33.8			78.8			15.2			44.3			45.6			39.2			41.5						29.4
Prior accident years before catastrophe losses					(2.1)			(3.4)			(4.4)			(17.5)			(4.9)			(1.7)			8.0			(4.0)			3.4			(3.3)			0.5						(4.1)
Prior accident years catastrophe losses					(0.7)			1.3			(5.8)			(5.3)			3.7			1.1			3.4			(2.2)			2.3			(1.7)			2.8						0.7
Total loss and loss expense ratio					72.1	%		109.9	%		78.4	%		3.0	%		110.2	%		155.0	%		91.4	%		94.3	%		121.8	%		86.7	%		117.8	%					88.1	%
Commercial auto:
Written premiums				$	109		$	115		$	114		$	100		$	96		$	102		$	107		$	229		$	209		$	338		$	305					$	405
Earned premiums					108			106			101			102			100			96			96			207			192			315			292						394
Current accident year before catastrophe losses					71.1	%		71.8	%		73.9	%		81.3	%		67.8	%		72.6	%		76.5	%		72.8	%		74.5	%		72.2	%		72.2	%					74.5	%
Current accident year catastrophe losses					0.8			3.2			1.4			(1.5)			2.5			6.2			0.3			2.4			3.3			1.8			3.0						1.9
Prior accident years before catastrophe losses					4.9			(1.8)			(11.9)			3.1			3.5			(11.0)			(24.2)			(6.8)			(17.6)			(2.7)			(10.3)						(6.9)
Prior accident years catastrophe losses					(0.2)			(0.3)			(0.5)			-			(0.1)			(0.1)			(0.4)			(0.4)			(0.2)			(0.3)			(0.2)						(0.2)
Total loss and loss expense ratio					76.6	%		72.9	%		62.9	%		82.9	%		73.7	%		67.7	%		52.2	%		68.0	%		60.0	%		71.0	%		64.7	%					69.3	%
Workers' compensation:
Written premiums				$	78		$	86		$	93		$	78		$	71		$	73		$	90		$	179		$	163		$	257		$	234					$	312
Earned premiums					89			85			81			83			78			81			76			166			157			255			235						318
Current accident year before catastrophe losses					80.8	%		80.8	%		82.7	%		64.5	%		119.2	%		108.5	%		95.6	%		81.7	%		102.3	%		81.5	%		107.9	%					96.6	%
Current accident year catastrophe losses					-			-			-			-			-			-			-			-			-			-			-						-
Prior accident years before catastrophe losses					(25.7)			(14.3)			(19.0)			(58.2)			(28.4)			(28.9)			(4.1)			(16.6)			(16.9)			(19.8)			(20.7)						(30.5)
Prior accident years catastrophe losses					-			-			-			-			-			-			-			-			-			-			-						-
Total loss and loss expense ratio					55.1	%		66.5	%		63.7	%		6.3	%		90.8	%		79.6	%		91.5	%		65.1	%		85.4	%		61.7	%		87.2	%					66.1	%
Specialty package:
Written premiums				$	39		$	38		$	40		$	37		$	36		$	27		$	37		$	78		$	64		$	117		$	100					$	137
Earned premiums					37			37			38			38			36			27			37			75			64			112			100						138
Current accident year before catastrophe losses					56.7	%		72.8	%		66.4	%		42.8	%		91.6	%		93.8	%		62.7	%		69.6	%		75.7	%		65.3	%		81.5	%					70.9	%
Current accident year catastrophe losses					29.3			23.9			24.8			(3.0)			25.7			223.8			9.2			24.4			99.4			26.0			72.7						51.8
Prior accident years before catastrophe losses					9.1			(3.0)			(14.0)			(20.6)			19.6			1.8			15.1			(8.5)			9.5			(2.7)			13.2						3.9
Prior accident years catastrophe losses					(14.8)			(0.2)			(12.6)			0.8			(0.9)			(0.7)			(1.5)			(6.5)			(1.1)			(9.2)			(1.1)						(0.6)
Total loss and loss expense ratio					80.3	%		93.5	%		64.6	%		20.0	%		136.0	%		318.7	%		85.5	%		79.0	%		183.5	%		79.4	%		166.3	%					126.0	%
Surety and executive risk:
Written premiums				$	31		$	29		$	27		$	26		$	28		$	26		$	24		$	56		$	50		$	87		$	78					$	104
Earned premiums					28			27			27			27			26			25			25			54			50			82			76						103
Current accident year before catastrophe losses					60.4	%		72.1	%		49.2	%		96.4	%		54.7	%		47.9	%		54.7	%		60.9	%		51.3	%		60.7	%		52.4	%					63.7	%
Current accident year catastrophe losses					-			-			-			-			-			-			-			-			-			-			-						-
Prior accident years before catastrophe losses					(17.2)			10.3			34.8			38.8			32.5			19.4			41.4			22.3			30.2			8.9			31.0						33.0
Prior accident years catastrophe losses					-			-			-			-			-			-			-			-			-			-			-						-
Total loss and loss expense ratio					43.2	%		82.4	%		84.0	%		135.2	%		87.2	%		67.3	%		96.1	%		83.2	%		81.5	%		69.6	%		83.4	%					96.7	%
Machinery and equipment:
Written premiums				$	12		$	10		$	9		$	11		$	9		$	9		$	9		$	19		$	18		$	31		$	27					$	38
Earned premiums					10			10			9			10			9			9			8			19			17			29			26						36
Current accident year before catastrophe losses					19.9	%		23.8	%		36.0	%		10.0	%		38.7	%		32.0	%		28.2	%		29.8	%		30.1	%		26.4	%		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					(3.9)			(2.5)			3.2			(7.8)			(1.6)			6.9			8.5			0.4			7.7			(1.1)			4.5						1.2
Prior accident years catastrophe losses					-			-			-			-			-			-			-			-			-			-			-						-
Total loss and loss expense ratio					16.0	%		21.3	%		39.2	%		(0.1)	%		39.5	%		39.1	%		36.9	%		30.2	%		38.0	%		25.3	%		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.

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

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				$	117		$	115		$	91		$	92		$	107		$	104		$	82		$	206		$	186		$	323		$	293					$	385
Earned premiums					101			100			98			95			94			90			89			198			179			299			273						368
Current accident year before catastrophe losses					68.2	%		78.0	%		73.5	%		103.4	%		66.6	%		67.3	%		68.2	%		75.8	%		67.7	%		73.2	%		67.4	%					76.7	%
Current accident year catastrophe losses					(3.1)			9.7			5.1			(0.9)			1.5			10.3			1.3			7.4			5.8			3.9			4.3						3.0
Prior accident years before catastrophe losses					(5.2)			(4.7)			(8.1)			4.8			1.7			(5.0)			(5.3)			(6.4)			(5.1)			(6.0)			(2.8)						(0.8)
Prior accident years catastrophe losses					(0.3)			(0.7)			(0.8)			-			(0.1)			(0.1)			(0.4)			(0.8)			(0.2)			(0.6)			(0.2)						(0.2)
Total loss and loss expense ratio					59.6	%		82.3	%		69.7	%		107.3	%		69.7	%		72.5	%		63.8	%		76.0	%		68.2	%		70.5	%		68.7	%					78.7	%
Homeowner:
Written premiums				$	105		$	103		$	77		$	79		$	87		$	78		$	68		$	180		$	146		$	285		$	233					$	312
Earned premiums					90			87			84			78			74			66			76			171			142			261			216						294
Current accident year before catastrophe losses					80.7	%		74.0	%		63.0	%		62.8	%		86.2	%		97.8	%		71.4	%		68.6	%		83.6	%		72.8	%		84.5	%					78.7	%
Current accident year catastrophe losses					28.1			59.2			60.4			(5.3)			40.3			175.4			22.1			59.8			92.7			48.9			74.7						53.6
Prior accident years before catastrophe losses					(11.9)			(6.0)			(2.9)			(13.3)			(6.1)			(0.5)			2.6			(4.5)			1.1			(7.1)			(1.4)						(4.5)
Prior accident years catastrophe losses					(4.9)			(5.7)			(9.8)			(0.2)			(1.8)			(0.1)			(5.8)			(7.7)			(3.1)			(6.8)			(2.7)						(2.0)
Total loss and loss expense ratio					92.0	%		121.5	%		110.7	%		44.0	%		118.6	%		272.6	%		90.3	%		116.2	%		174.3	%		107.8	%		155.1	%					125.8	%
Other personal:
Written premiums				$	31		$	32		$	25		$	25		$	28		$	28		$	23		$	57		$	51		$	88		$	79					$	104
Earned premiums					28			27			27			26			25			24			25			54			49			82			74						100
Current accident year before catastrophe losses					46.2	%		68.6	%		63.1	%		52.7	%		87.0	%		88.2	%		55.9	%		65.9	%		71.9	%		59.2	%		77.0	%					70.7	%
Current accident year catastrophe losses					18.4			6.0			11.7			(0.8)			10.4			34.5			3.8			8.8			19.0			12.1			16.1						11.7
Prior accident years before catastrophe losses					(30.4)			6.2			(22.1)			(18.8)			(36.4)			(18.4)			2.3			(7.8)			(7.9)			(15.5)			(17.6)						(17.9)
Prior accident years catastrophe losses					(1.2)			(1.2)			(3.1)			(0.1)			(0.6)			(0.5)			(0.8)			(2.1)			(0.6)			(1.8)			(0.6)						(0.5)
Total loss and loss expense ratio					33.0	%		79.6	%		49.6	%		33.0	%		60.4	%		103.8	%		61.2	%		64.8	%		82.4	%		54.0	%		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.

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

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 for the nine months ended September 30, 2012
Commercial casualty		$	219			$	101			$	320			$	(33	)		$	(27	)		$	(21	)		$	(81	)		$	186			$	(27	)		$	80			$	239
Commercial property			289				23				312				44				11				3				58				333				11				26				370
Commercial auto			195				31				226				(4	)			1				1				(2	)			191				1				32				224
Workers' compensation			158				34				192				(22	)			-				(6	)			(28	)			136				-				28				164
Specialty packages			82				14				96				(6	)			(2	)			(3	)			(11	)			76				(2	)			11				85
Surety and executive risk			40				15				55				7				(1	)			(3	)			3				47				(1	)			12				58
Machinery and equipment			7				-				7				(2	)			1				1				-				5				1				1				7
Total commercial lines			990				218				1,208				(16	)			(17	)			(28	)			(61	)			974				(17	)			190				1,147
Personal auto			179				30				209				3				-				-				3				182				-				30				212
Homeowners			251				22				273				17				(6	)			3				14				268				(6	)			25				287
Other personal			39				2				41				1				-				-				1				40				-				2				42
Total personal lines			469				54				523				21				(6	)			3				18				490				(6	)			57				541
Commercial casualty & property			12				5				17				20				16				7				43				32				16				12				60
Total excess & surplus lines			12				5				17				20				16				7				43				32				16				12				60
Total property casualty		$	1,471			$	277			$	1,748			$	25			$	(7	)		$	(18	)		$	-			$	1,496			$	(7	)		$	259			$	1,748
Ceded loss and loss expense incurred for the nine months ended September 30, 2012
Commercial casualty		$	7			$	1			$	8			$	10			$	(5	)		$	(1	)		$	4			$	17			$	(5	)		$	-			$	12
Commercial property			23				1				24				(5	)			-				-				(5	)			18				-				1				19
Commercial auto			-				-				-				1				(1	)			-				-				1				(1	)			-				-
Workers' compensation			8				-				8				-				(1	)			-				(1	)			8				(1	)			-				7
Specialty packages			13				-				13				(15	)			(2	)			-				(17	)			(2	)			(2	)			-				(4	)
Surety and executive risk			2				-				2				(2	)			-				-				(2	)			-				-				-				-
Machinery and equipment			-				-				-				-				-				-				-				-				-				-				-
Total commercial lines			53				2				55				(11	)			(9	)			(1	)			(21	)			42				(9	)			1				34
Personal auto			1				-				1				-				(1	)			-				(1	)			1				(1	)			-				-
Homeowners			17				-				17				(4	)			(7	)			-				(11	)			13				(7	)			-				6
Other personal			1				-				1				(1	)			(1	)			-				(2	)			-				(1	)			-				(1	)
Total personal lines			19				-				19				(5	)			(9	)			-				(14	)			14				(9	)			-				5
Commercial casualty & property			-				-				-				4				1				-				5				4				1				-				5
Total excess & surplus lines			-				-				-				4				1				-				5				4				1				-				5
Total property casualty		$	72			$	2			$	74			$	(12	)		$	(17	)		$	(1	)		$	(30	)		$	60			$	(17	)		$	1			$	44
Net loss and loss expense incurred for the nine months ended September 30, 2012
Commercial casualty		$	212			$	100			$	312			$	(43	)		$	(22	)		$	(20	)		$	(85	)		$	169			$	(22	)		$	80			$	227
Commercial property			266				22				288				49				11				3				63				315				11				25				351
Commercial auto			195				31				226				(5	)			2				1				(2	)			190				2				32				224
Workers' compensation			150				34				184				(22	)			1				(6	)			(27	)			128				1				28				157
Specialty packages			69				14				83				9				-				(3	)			6				78				-				11				89
Surety and executive risk			38				15				53				9				(1	)			(3	)			5				47				(1	)			12				58
Machinery and equipment			7				-				7				(2	)			1				1				-				5				1				1				7
Total commercial lines			937				216				1,153				(5	)			(8	)			(27	)			(40	)			932				(8	)			189				1,113
Personal auto			178				30				208				3				1				-				4				181				1				30				212
Homeowners			234				22				256				21				1				3				25				255				1				25				281
Other personal			38				2				40				2				1				-				3				40				1				2				43
Total personal lines			450				54				504				26				3				3				32				476				3				57				536
Commercial casualty & property			12				5				17				16				15				7				38				28				15				12				55
Total excess & surplus lines			12				5				17				16				15				7				38				28				15				12				55
Total property casualty		$	1,399			$	275			$	1,674			$	37			$	10			$	(17	)		$	30			$	1,436			$	10			$	258			$	1,704

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

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 for the three months ended September 30, 2012
Commercial casualty		$	72			$	31			$	103			$	(7	)		$	(4	)		$	(4	)		$	(15	)		$	65			$	(4	)		$	27			$	88
Commercial property			111				9				120				21				(32	)			3				(8	)			132				(32	)			12				112
Commercial auto			69				10				79				3				1				2				6				72				1				12				85
Workers' compensation			51				9				60				(10	)			4				(3	)			(9	)			41				4				6				51
Specialty packages			33				5				38				(2	)			(5	)			(2	)			(9	)			31				(5	)			3				29
Surety and executive risk			14				4				18				7				3				(12	)			(2	)			21				3				(8	)			16
Machinery and equipment			2				-				2				1				(2	)			1				-				3				(2	)			1				2
Total commercial lines			352				68				420				13				(35	)			(15	)			(37	)			365				(35	)			53				383
Personal auto			61				9				70				-				(7	)			(2	)			(9	)			61				(7	)			7				61
Homeowners			98				9				107				3				(27	)			2				(22	)			101				(27	)			11				85
Other personal			13				1				14				-				(5	)			-				(5	)			13				(5	)			1				9
Total personal lines			172				19				191				3				(39	)			-				(36	)			175				(39	)			19				155
Commercial casualty & property			5				2				7				7				6				3				16				12				6				5				23
Total excess & surplus lines			5				2				7				7				6				3				16				12				6				5				23
Total property casualty		$	529			$	89			$	618			$	23			$	(68	)		$	(12	)		$	(57	)		$	552			$	(68	)		$	77			$	561
Ceded loss and loss expense incurred for the three months ended September 30, 2012
Commercial casualty		$	4			$	-			$	4			$	7			$	(1	)		$	-			$	6			$	11			$	(1	)		$	-			$	10
Commercial property			5				1				6				6				1				-				7				11				1				1				13
Commercial auto			-				-				-				1				-				-				1				1				-				-				1
Workers' compensation			3				-				3				(1	)			1				-				-				2				1				-				3
Specialty packages			4				-				4				(5	)			-				-				(5	)			(1	)			-				-				(1	)
Surety and executive risk			3				-				3				2				-				-				2				5				-				-				5
Machinery and equipment			-				-				-				-				-				-				-				-				-				-				-
Total commercial lines			19				1				20				10				1				-				11				29				1				1				31
Personal auto			-				-				-				-				-				-				-				-				-				-				-
Homeowners			3				-				3				(1	)			1				-				-				2				1				-				3
Other personal			-				-				-				-				-				-				-				-				-				-				-
Total personal lines			3				-				3				(1	)			1				-				-				2				1				-				3
Commercial casualty & property			-				-				-				1				1				-				2				1				1				-				2
Total excess & surplus lines			-				-				-				1				1				-				2				1				1				-				2
Total property casualty		$	22			$	1			$	23			$	10			$	3			$	-			$	13			$	32			$	3			$	1			$	36
Net loss and loss expense incurred for the three months ended September 30, 2012
Commercial casualty		$	68			$	31			$	99			$	(14	)		$	(3	)		$	(4	)		$	(21	)		$	54			$	(3	)		$	27			$	78
Commercial property			106				8				114				15				(33	)			3				(15	)			121				(33	)			11				99
Commercial auto			69				10				79				2				1				2				5				71				1				12				84
Workers' compensation			48				9				57				(9	)			3				(3	)			(9	)			39				3				6				48
Specialty packages			29				5				34				3				(5	)			(2	)			(4	)			32				(5	)			3				30
Surety and executive risk			11				4				15				5				3				(12	)			(4	)			16				3				(8	)			11
Machinery and equipment			2				-				2				1				(2	)			1				-				3				(2	)			1				2
Total commercial lines			333				67				400				3				(36	)			(15	)			(48	)			336				(36	)			52				352
Personal auto			61				9				70				-				(7	)			(2	)			(9	)			61				(7	)			7				61
Homeowners			95				9				104				4				(28	)			2				(22	)			99				(28	)			11				82
Other personal			13				1				14				-				(5	)			-				(5	)			13				(5	)			1				9
Total personal lines			169				19				188				4				(40	)			-				(36	)			173				(40	)			19				152
Commercial casualty & property			5				2				7				6				5				3				14				11				5				5				21
Total excess & surplus lines			5				2				7				6				5				3				14				11				5				5				21
Total property casualty		$	507			$	88			$	595			$	13			$	(71	)		$	(12	)		$	(70	)		$	520			$	(71	)		$	76			$	525

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

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				$	807		$	798		$	762		$	712		$	730		$	717		$	708		$	1,560		$	1,425		$	2,367		$	2,155					$	2,867
Agency new business written premiums					130			131			108			103			115			117			102			239			219			369			334						437
Other written premiums					(38)			(26)			(27)			(55)			(54)			(66)			(31)			(53)			(97)			(91)			(151)						(206)
Reported written premiums – statutory*				$	899		$	903		$	843		$	760		$	791		$	768		$	779		$	1,746		$	1,547		$	2,645		$	2,338					$	3,098
Unearned premium change					(48)			(77)			(45)			25			(22)			(38)			(34)			(122)			(72)			(170)			(94)						(69)
Earned premiums				$	851		$	826		$	798		$	785		$	769		$	730		$	745		$	1,624		$	1,475		$	2,475		$	2,244					$	3,029
Year over year change %
Agency renewal written premiums					11	%		11	%		8	%		10	%		8	%		5	%		4	%		9	%		4	%		10	%		5	%					7	%
Agency new business written premiums					13			12			6			(4)			6			10			11			9			11			10			9						6
Other written premiums					30			61			13			(67)			(8)			(57)			(72)			45			(62)			40			(37)						(44)
Reported written premiums – statutory*					14			18			8			5			7			3			3			13			3			13			4						5
Paid losses and loss expenses
Losses paid				$	507		$	475		$	415		$	455		$	481		$	560		$	404		$	890		$	964		$	1,399		$	1,442					$	1,899
Loss expenses paid					88			97			90			90			85			82			85			189			166			275			251						342
Loss and loss expenses paid				$	595		$	572		$	505		$	545		$	566		$	642		$	489		$	1,079		$	1,130		$	1,674		$	1,693					$	2,241
Statutory combined ratio
Loss ratio					52.8	%		66.7	%		55.9	%		44.0	%		65.4	%		91.2	%		58.4	%		61.4	%		74.6	%		58.4	%		71.5	%					64.4	%
Allocated loss expense ratio					3.7			4.5			5.5			6.2			6.4			7.0			6.0			5.0			6.5			4.6			6.4						6.3
Unallocated loss expense ratio					5.2			6.3			6.1			5.4			7.3			5.9			6.7			6.3			6.3			5.9			6.7						6.3
Net underwriting expense ratio					31.8			30.2			31.3			32.9			31.1			31.3			32.2			30.7			31.8			31.1			31.5						31.9
Statutory combined ratio					93.5	%		107.7	%		98.8	%		88.5	%		110.2	%		135.4	%		103.3	%		103.4	%		119.2	%		100.0	%		116.1	%					108.9	%
Contribution from catastrophe losses					8.0			17.8			11.1			(2.8)			12.0			39.8			5.5			14.6			22.5			12.3			18.9						13.3
Statutory combined ratio excluding catastrophe losses					85.5	%		89.9	%		87.7	%		91.3	%		98.2	%		95.6	%		97.8	%		88.8	%		96.7	%		87.7	%		97.2	%					95.6	%
Commission expense ratio					18.4	%		18.1	%		18.9	%		19.5	%		18.2	%		18.2	%		18.4	%		18.5	%		18.3	%		18.5	%		18.2	%					18.6	%
Other expense ratio					13.4			12.1			12.4			13.4			12.9			13.1			13.8			12.2			13.5			12.6			13.3						13.3
Statutory expense ratio					31.8	%		30.2	%		31.3	%		32.9	%		31.1	%		31.3	%		32.2	%		30.7	%		31.8	%		31.1	%		31.5	%					31.9	%
GAAP combined ratio
GAAP combined ratio					94.8	%		109.5	%		99.1	%		87.5	%		110.6	%		136.7	%		104.1	%		104.4	%		120.2	%		101.1	%		117.0	%					109.3	%
Contribution from catastrophe losses					8.0			17.8			11.1			(2.8)			12.0			39.8			5.5			14.6			22.5			12.3			18.9						13.3
GAAP combined ratio excluding catastrophe losses					86.8	%		91.7	%		88.0	%		90.3	%		98.6	%		96.9	%		98.6	%		89.8	%		97.7	%		88.8	%		98.1	%					96.0	%

 

*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.

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

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				$	557		$	552		$	571		$	514		$	507		$	500		$	542		$	1,123		$	1,042		$	1,680		$	1,549					$	2,063
Agency new business written premiums					90			91			75			74			81			81			71			166			152			256			233						307
Other written premiums					(28)			(17)			(20)			(42)			(41)			(44)			(25)			(37)			(69)			(65)			(110)						(152)
Reported written premiums – statutory*				$	619		$	626		$	626		$	546		$	547		$	537		$	588		$	1,252		$	1,125		$	1,871		$	1,672					$	2,218
Unearned premium change					(12)			(36)			(58)			21			10			(4)			(48)			(94)			(52)			(106)			(42)						(21)
Earned premiums				$	607		$	590		$	568		$	567		$	557		$	533		$	540		$	1,158		$	1,073		$	1,765		$	1,630					$	2,197
Year over year change %
Agency renewal written premiums					10	%		10	%		5	%		8	%		6	%		2	%		2	%		8	%		2	%		8	%		3	%					4	%
Agency new business written premiums					11			12			6			(3)			9			11			8			9			9			10			9						6
Other written premiums					32			61			20			(62)			2			(33)			(127)			46			(57)			41			(28)						(36)
Reported written premiums – statutory*					13			17			6			4			7			1			0			11			0			12			3						3
Paid losses and loss expenses
Losses paid				$	331		$	320		$	282		$	329		$	326		$	327		$	290		$	602		$	618		$	937		$	942					$	1,273
Loss expenses paid					67			74			74			75			65			63			69			149			131			216			197						271
Loss and loss expenses paid				$	398		$	394		$	356		$	404		$	391		$	390		$	359		$	751		$	749		$	1,153		$	1,139					$	1,544
Statutory combined ratio
Loss ratio					49.5	%		59.6	%		48.0	%		40.6	%		61.8	%		77.5	%		55.5	%		54.0	%		66.4	%		52.4	%		64.8	%					58.5	%
Allocated loss expense ratio					4.0			5.0			6.8			7.7			7.7			8.9			7.0			5.8			8.0			5.2			7.9						7.9
Unallocated loss expense ratio					4.5			5.5			6.3			1.8			7.3			4.4			6.7			5.9			5.5			5.4			6.1						5.0
Net underwriting expense ratio					33.1			31.7			31.3			33.6			32.6			32.2			32.9			31.5			32.6			32.0			32.6						32.8
Statutory combined ratio					91.1	%		101.8	%		92.4	%		83.7	%		109.4	%		123.0	%		102.1	%		97.2	%		112.5	%		95.0	%		111.4	%					104.2	%
Contribution from catastrophe losses					7.5			15.2			6.8			(2.9)			10.7			29.7			4.9			11.2			17.2			9.9			14.9						10.4
Statutory combined ratio excluding catastrophe losses					83.6	%		86.6	%		85.6	%		86.6	%		98.7	%		93.3	%		97.2	%		86.0	%		95.3	%		85.1	%		96.5	%					93.8	%
Commission expense ratio					18.3	%		17.8	%		17.9	%		18.9	%		18.1	%		17.7	%		18.5	%		17.8	%		18.1	%		18.0	%		18.1	%					18.3	%
Other expense ratio					14.8			13.9			13.4			14.7			14.5			14.5			14.4			13.7			14.5			14.0			14.5						14.5
Statutory expense ratio					33.1	%		31.7	%		31.3	%		33.6	%		32.6	%		32.2	%		32.9	%		31.5	%		32.6	%		32.0	%		32.6	%					32.8	%
GAAP combined ratio
GAAP combined ratio					90.2	%		103.5	%		94.2	%		83.9	%		108.0	%		124.2	%		104.3	%		98.9	%		114.2	%		95.9	%		112.0	%					104.8	%
Contribution from catastrophe losses					7.5			15.2			6.8			(2.9)			10.7			29.7			4.9			11.2			17.2			9.9			14.9						10.4
GAAP combined ratio excluding catastrophe losses					82.7	%		88.3	%		87.4	%		86.8	%		97.3	%		94.5	%		99.4	%		87.7	%		97.0	%		86.0	%		97.1	%					94.4	%

 

*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.

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

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				$	231		$	227		$	175		$	185		$	209		$	205		$	156		$	402		$	361		$	633		$	570					$	755
Agency new business written premiums					31			29			24			22			25			26			22			53			48			84			73						95
Other written premiums					(9)			(6)			(6)			(11)			(12)			(21)			(5)			(12)			(26)			(21)			(38)						(49)
Reported written premiums – statutory*				$	253		$	250		$	193		$	196		$	222		$	210		$	173		$	443		$	383		$	696		$	605					$	801
Unearned premium change					(34)			(36)			16			3			(29)			(30)			17			(20)			(13)			(54)			(42)						(39)
Earned premiums				$	219		$	214		$	209		$	199		$	193		$	180		$	190		$	423		$	370		$	642		$	563					$	762
Year over year change %
Agency renewal written premiums					11	%		11	%		12	%		11	%		11	%		10	%		9	%		11	%		9	%		11	%		10	%					10	%
Agency new business written premiums					24			12			9			(4)			0			8			22			10			14			15			9						6
Other written premiums					25			71			(20)			(83)			(100)			(200)			17			54			(100)			45			(100)						(96)
Reported written premiums – statutory*					14			19			12			7			7			3			12			16			7			15			7						7
Paid losses and loss expenses
Losses paid				$	169		$	151		$	130		$	122		$	151		$	229		$	109		$	280		$	338		$	450		$	488					$	611
Loss expenses paid					19			21			15			14			18			18			15			37			33			54			51						66
Loss and loss expenses paid				$	188		$	172		$	145		$	136		$	169		$	247		$	124		$	317		$	371		$	504		$	539					$	677
Statutory combined ratio
Loss ratio					60.7	%		87.2	%		76.2	%		55.1	%		78.4	%		135.7	%		64.9	%		81.8	%		99.3	%		74.6	%		92.1	%					82.5	%
Allocated loss expense ratio					1.9			1.9			1.8			1.8			1.9			3.0			2.3			1.8			2.6			1.8			2.4						2.2
Unallocated loss expense ratio					6.9			8.8			5.6			16.0			7.0			10.7			6.9			7.2			8.8			7.2			8.2						10.2
Net underwriting expense ratio					28.8			26.5			31.2			31.0			27.4			29.0			30.3			28.6			29.5			28.6			28.8						29.3
Statutory combined ratio					98.3	%		124.4	%		114.8	%		103.9	%		114.7	%		178.4	%		104.4	%		119.4	%		140.2	%		112.2	%		131.5	%					124.2	%
Contribution from catastrophe losses					10.2			26.6			23.5			(2.7)			16.8			73.4			7.4			25.0			39.4			19.9			31.7						22.7
Statutory combined ratio excluding catastrophe losses					88.1	%		97.8	%		91.3	%		106.6	%		97.9	%		105.0	%		97.0	%		94.4	%		100.8	%		92.3	%		99.8	%					101.5	%
Commission expense ratio					17.9	%		18.2	%		21.3	%		20.4	%		17.6	%		18.7	%		17.9	%		19.6	%		18.3	%		18.9	%		18.1	%					18.6	%
Other expense ratio					10.9			8.3			9.9			10.6			9.8			10.3			12.4			9.0			11.2			9.7			10.7						10.7
Statutory expense ratio					28.8	%		26.5	%		31.2	%		31.0	%		27.4	%		29.0	%		30.3	%		28.6	%		29.5	%		28.6	%		28.8	%					29.3	%
GAAP combined ratio
GAAP combined ratio					105.7	%		126.1	%		110.9	%		99.4	%		119.9	%		179.5	%		101.5	%		118.6	%		139.4	%		114.2	%		132.7	%					124.0	%
Contribution from catastrophe losses					10.2			26.6			23.5			(2.7)			16.8			73.4			7.4			25.0			39.4			19.9			31.7						22.7
GAAP combined ratio excluding catastrophe losses					95.5	%		99.5	%		87.4	%		102.1	%		103.1	%		106.1	%		94.1	%		93.6	%		100.0	%		94.3	%		101.0	%					101.3	%

 

*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.

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

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				$	19		$	19		$	16		$	13		$	14		$	12		$	10		$	35		$	22		$	54		$	36					$	49
Agency new business written premiums					9			11			9			7			9			10			9			20			19			29			28						35
Other written premiums					(1)			(3)			(1)			(2)			(1)			(1)			(1)			(4)			(2)			(5)			(3)						(5)
Reported written premiums – statutory*				$	27		$	27		$	24		$	18		$	22		$	21		$	18		$	51		$	39		$	78		$	61					$	79
Unearned premium change					(2)			(5)			(3)			1			(3)			(4)			(3)			(8)			(7)			(10)			(10)						(9)
Earned premiums				$	25		$	22		$	21		$	19		$	19		$	17		$	15		$	43		$	32		$	68		$	51					$	70
Year over year change %
Agency renewal written premiums					36	%		58	%		60	%		63	%		56	%		100	%		67	%		59	%		83	%		50	%		71	%					69	%
Agency new business written premiums					0			10			0			(13)			(10)			11			13			5			12			4			4						0
Other written premiums					0			(200)			0			(100)			50			50			0			(100)			33			(67)			40						17
Reported written premiums – statutory*					23			29			33			20			29			62			38			31			50			28			42						36
Paid losses and loss expenses
Losses paid				$	5		$	4		$	3		$	3		$	3		$	4		$	4		$	7		$	8		$	12		$	12					$	15
Loss expenses paid					2			2			1			2			2			1			1			3			2			5			3						5
Loss and loss expenses paid				$	7		$	6		$	4		$	5		$	5		$	5		$	5		$	10		$	10		$	17		$	15					$	20
Statutory combined ratio
Loss ratio					64.5	%		59.8	%		65.7	%		33.9	%		41.1	%		49.6	%		77.6	%		62.7	%		62.8	%		63.3	%		54.9	%					48.9	%
Allocated loss expense ratio					11.9			15.1			10.6			5.6			11.2			(12.8)			19.1			12.8			2.2			12.6			5.5						5.5
Unallocated loss expense ratio					5.8			3.9			5.3			2.9			9.9			4.7			6.1			4.6			5.3			5.0			7.0						5.9
Net underwriting expense ratio					30.9			30.6			31.9			31.8			30.7			31.6			27.6			31.2			29.8			31.1			30.0						30.5
Statutory combined ratio					113.1	%		109.4	%		113.5	%		74.2	%		92.9	%		73.1	%		130.4	%		111.3	%		100.1	%		112.0	%		97.4	%					90.8	%
Contribution from catastrophe losses					0.7			3.5			3.7			(0.3)			2.5			4.4			2.8			3.5			3.6			2.5			3.2						2.2
Statutory combined ratio excluding catastrophe losses					112.4	%		105.9	%		109.8	%		74.5	%		90.4	%		68.7	%		127.6	%		107.8	%		96.5	%		109.5	%		94.2	%					88.6	%
Commission expense ratio					25.4	%		25.3	%		26.5	%		26.0	%		25.1	%		24.5	%		22.2	%		25.8	%		23.5	%		25.7	%		24.1	%					24.5	%
Other expense ratio					5.5			5.3			5.4			5.8			5.6			7.1			5.4			5.4			6.3			5.4			6.0						6.0
Statutory expense ratio					30.9	%		30.6	%		31.9	%		31.8	%		30.7	%		31.6	%		27.6	%		31.2	%		29.8	%		31.1	%		30.1	%					30.5	%
GAAP combined ratio
GAAP combined ratio					111.5	%		110.7	%		113.6	%		73.7	%		94.0	%		75.9	%		132.7	%		112.1	%		102.6	%		111.9	%		99.4	%					92.2	%
Contribution from catastrophe losses					0.7			3.5			3.7			(0.3)			2.5			4.4			2.8			3.5			3.6			2.5			3.2						2.2
GAAP combined ratio excluding catastrophe losses					110.8	%		107.2	%		109.9	%		74.0	%		91.5	%		71.5	%		129.9	%		108.6	%		99.0	%		109.4	%		96.2	%					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.

 

CINF 2012 Third-Quarter Supplemental Financial Data

 

 

The Cincinnati Life Insurance Company

Statutory Statements of Income

 

		For the Three Months Ended September 30,																For the Nine Months Ended September 30,
(Dollars in millions)		2012				2011				Change				% Change				2012				2011				Change				% Change
Net premiums written		$	58			$	60			$	(2	)			(3	)		$	184			$	237			$	(53	)			(22	)
Net investment income			36				34				2				6				105				104				1				1
Amortization of interest maintenance reserve			1				-				1				nm				1				-				1				nm
Commissions and expense allowances on reinsurance ceded			1				2				(1	)			(50	)			5				5				-				0
Income from fees associated with Separate Accounts			-				1				(1	)			nm				1				2				(1	)			(50	)
Total revenues		$	96			$	97			$	(1	)			(1	)		$	296			$	348			$	(52	)			(15	)
Death benefits and matured endowments		$	19			$	17			$	2				12			$	54			$	47			$	7				15
Annuity benefits			9				11				(2	)			(18	)			36				37				(1	)			(3	)
Disability benefits and benefits under accident and health contracts			1				(1	)			2				nm				1				(1	)			2				nm
Surrender benefits and group conversions			5				7				(2	)			(29	)			17				19				(2	)			(11	)
Interest and adjustments on deposit-type contract funds			3				3				-				0				9				8				1				13
Increase in aggregate reserves for life and accident and health contracts			38				41				(3	)			(7	)			121				176				(55	)			(31	)
Payments on supplementary contracts with life contingencies			-				-				-				-				-				-				-				-
Total benefit expenses		$	75			$	78			$	(3	)			(4	)		$	238			$	286			$	(48	)			(17	)
Commissions		$	9			$	9			$	-				0			$	29			$	31			$	(2	)			(6	)
General insurance expenses and taxes			10				10				-				0				31				31				-				0
Increase in loading on deferred and uncollected premiums			(1	)			(2	)			1				50				(3	)			(5	)			2				40
Net transfers from Separate Accounts			-				-				-				-				-				-				-				-
Other deductions			-				-				-				-				-				-				-				-
Total operating expenses		$	18			$	17			$	1				6			$	57			$	57			$	-				0
Federal and foreign income tax provision (benefit)			-				1				(1	)			-				(1	)			13				(14	)			nm
Net income (loss) from operations before realized capital gains		$	3			$	1			$	2				200			$	2			$	(8	)		$	10				nm
Net realized gains (losses) net of capital gains tax			1				(1	)			2				nm				1				(18	)			19				nm
Net income (loss) (statutory)		$	4			$	-			$	4				nm			$	3			$	(26	)		$	29				nm

 

*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.

 

CINF 2012 Third-Quarter Supplemental Financial Data