CINCINNATI FINANCIAL CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
8-K - 8-K - CINCINNATI FINANCIAL CORP	a2q15release8-k.htm
EX-99.3 - EXHIBIT 99.3 - CINCINNATI FINANCIAL CORP	exhibit9932q15.htm
EX-99.1 - EXHIBIT 99.1 - CINCINNATI FINANCIAL CORP	exhibit9912q15.htm

Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending June 30, 2015

6200 South Gilmore Road

Fairfield, Ohio 45014-5141

cinfin.com



Investor Contact:	Media Contact:	Shareholder Contact:
Dennis E. McDaniel	Betsy E. Ertel	Molly A. Grimm
513-870-2768	513-603-5323	513-870-2697



	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:
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 July 27, 2015, under continuous review and subject to change and/or affirmation. For the current ratings, select Financial Strength on 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.

CINF Second-Quarter 2015 Supplemental Financial Data



	Cincinnati Financial Corporation
	Supplemental Financial Data
	for the period ending June 30, 2015

		Page
	Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3

Consolidated
	Quick Reference	4
	CFC and Subsidiaries Consolidation – Six Months Ended June 30, 2015	5
	CFC and Subsidiaries Consolidation – Three Months Ended June 30, 2015	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 Risk State by Line of Business	12
	Quarterly Property Casualty Data – Commercial Lines	13
	Quarterly Property Casualty Data – Personal Lines and Excess & Surplus Lines	14
	Loss and Loss Expense Analysis – Six Months Ended June 30, 2015	15
	Loss and Loss Expense Analysis – Three Months Ended June 30, 2015	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

CINF Second-Quarter 2015 Supplemental Financial Data

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.

•

Value creation ratio: This is a measure of shareholder value creation that management believes captures the contribution of the company's insurance operations, the success of its investment strategy and the importance placed on paying cash dividends to shareholders. The value creation ratio measure is made up of two primary components: (1) rate of growth in book value per share plus (2) the ratio of dividends declared per share to beginning book value per share. Management believes this non-GAAP measure is a useful supplement to GAAP information, providing a meaningful measure of long-term progress in creating shareholder value. It is intended to be all-inclusive regarding changes in book value per share, and uses originally reported book value per share in cases where book value per share has been adjusted, such as adoption of Accounting Standards Updates with a cumulative effect of a change in accounting.

•

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 Second-Quarter 2015 Supplemental Financial Data



Cincinnati Financial Corporation
Quick Reference					—	Second Quarter 2015
(all data shown is for the three months ended or as of June 30, 2015)

(Dollars in millions except per share data)	6/30/2015		Year over year change %				6/30/2015			Year over year change %
Revenues:						Benefits and expenses:

Commercial lines net written premiums	$	787	5			Commercial lines loss and loss expenses	$	417		(10	)
Personal lines net written premiums	309		5			Personal lines loss and loss expenses	216			(5	)
Excess & surplus lines net written premiums	46		15			Excess & surplus lines loss and loss expenses	21			11
Property casualty net written premiums	1,142		6			Life and health contract holders' benefits incurred	58			4
Life and accident and health net written premiums	56		4			Underwriting, acquisition and insurance expenses	340			4
Annuity net written premiums	9		(26	)		Interest expenses	13			0
Life, annuity and accident and health net written premiums	65		(1	)		Other operating expenses	3			0
Commercial lines net earned premiums	745		4			Total benefits & expenses	1,068			(4	)
Personal lines net earned premiums	272		5			Income before income taxes	248			132
Excess & surplus lines net earned premiums	42		24			Total income tax	72			213
Property casualty net earned premiums	1,059		5
Fee revenue	3		0			Balance Sheet:
Life and accident and health net earned premiums	52		(2	)
Investment income	140		3			Fixed maturity investments	$	9,675
Realized investment gains, net	60		329			Equity securities	4,734
Other revenue	2		0			Other investments	142
Total revenues	1,316		8			Total invested assets	$	14,551

						Loss and loss expense reserves	$	4,691
						Life policy and investment contract reserves	2,543
Income:						Long-term debt and capital lease obligations	823
						Shareholders' equity	6,497
Operating income	$	138	84
Realized investment gains, net	38		322			Key ratios:
Net income	176		110
						Commercial lines GAAP combined ratio	87.2		%
						Personal lines GAAP combined ratio	109.2
						Excess & surplus lines GAAP combined ratio	76.0
						Property casualty GAAP combined ratio	92.4
Per share (diluted):
						Commercial lines STAT combined ratio	85.9		%
Operating income	$	0.83	80			Personal lines STAT combined ratio	105.8
Realized investment gains, net	0.23		360			Excess & surplus lines STAT combined ratio	78.7
Net income	1.06		108			Property casualty STAT combined ratio	90.7
Book value	39.60		2
Weighted average shares outstanding	165.5		0			Value creation ratio	(0.4		)%

CINF Second-Quarter 2015 Supplemental Financial Data



Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Six Months Ended June 30, 2015

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I		ELIM			Total
Revenues
Premiums earned:
Property casualty	$	—		$	2,174		$	—		$	—	$	—		$	2,174
Life	—			—			133			—		—			133
Premiums ceded	—			(74		)	(28		)	—		—			(102		)
Total earned premium	—			2,100			105			—		—			2,205
Investment income, net of expenses	24			181			74			—		—			279
Realized investment gains, net	9			92			2			—		4			107
Fee revenues	—			4			2			—		—			6
Other revenues	7			1			—			3		(7		)	4
Total revenues	$	40		$	2,378		$	183		$	3	$	(3	)	$	2,601

Benefits & expenses
Losses & contract holders' benefits	$	—		$	1,366		$	144		$	—	$	—		$	1,510
Reinsurance recoveries	—			(23		)	(26		)	—		—			(49		)
Underwriting, acquisition and insurance expenses	—			651			34			—		—			685
Interest expense	26			—			—			—		—			26
Other operating expenses	14			—			—			1		(8		)	7
Total expenses	$	40		$	1,994		$	152		$	1	$	(8	)	$	2,179

Income before income taxes	$	—		$	384		$	31		$	2	$	5		$	422

Provision (benefit) for income taxes
Current operating income	$	(4	)	$	85		$	(3	)	$	1	$	(1	)	$	78
Capital gains/losses	3			33			1			—		1			38
Deferred	(5		)	(8		)	13			—		2			2
Total provision (benefit) for income taxes	$	(6	)	$	110		$	11		$	1	$	2		$	118

Operating income	$	—		$	215		$	19		$	1	$	—		$	235

Net income - current year	$	6		$	274		$	20		$	1	$	3		$	304

Net income - prior year	$	3		$	148		$	22		$	1	$	1		$	175
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.

CINF Second-Quarter 2015 Supplemental Financial Data



Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Three Months Ended June 30, 2015

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I		ELIM			Total
Revenues
Premiums earned:
Property casualty	$	—		$	1,096		$	—		$	—	$	—		$	1,096
Life	—			—			68			—		—			68
Premiums ceded	—			(37		)	(16		)	—		—			(53		)
Total earned premium	—			1,059			52			—		—			1,111
Investment income, net of expenses	12			91			37			—		—			140
Realized investment gains, net	8			50			1			—		1			60
Fee revenues	—			2			1			—		—			3
Other revenues	3			1			—			2		(4		)	2
Total revenues	$	23		$	1,203		$	91		$	2	$	(3	)	$	1,316

Benefits & expenses
Losses & contract holders' benefits	$	—		$	676		$	72		$	—	$	—		$	748
Reinsurance recoveries	—			(22		)	(14		)	—		—			(36		)
Underwriting, acquisition and insurance expenses	—			324			16			—		—			340
Interest expense	13			—			—			—		—			13
Other operating expenses	6			—			—			1		(4		)	3
Total expenses	$	19		$	978		$	74		$	1	$	(4	)	$	1,068

Income before income taxes	$	4		$	225		$	17		$	1	$	1		$	248

Provision (benefit) for income taxes
Current operating income	$	(4	)	$	52		$	—		$	1	$	(1	)	$	48
Capital gains/losses	3			18			1			—		—			22
Deferred	(1		)	(4		)	6			—		1			2
Total provision (benefit) for income taxes	$	(2	)	$	66		$	7		$	1	$	—		$	72

Operating income	$	1		$	127		$	10		$	—	$	—		$	138

Net income - current year	$	6		$	159		$	10		$	—	$	1		$	176

Net income (loss) - prior year	$	(3	)	$	74		$	13		$	—	$	—		$	84
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.

CINF Second-Quarter 2015 Supplemental Financial Data



Cincinnati Financial Corporation Insurance Subsidiaries
Selected Balance Sheet Data

(Dollars in millions)
	12/31/2015	9/30/2015	6/30/2015		3/31/2015		12/31/2014		9/30/2014		6/30/2014		3/31/2014
Cincinnati Insurance Consolidated
Fixed maturities (fair value)			$	6,435	$	6,325	$	6,260	$	6,344	$	6,215	$	6,111
Equities (fair value)			3,108		3,108		3,195		3,121		3,094		3,022
Fixed maturities - pretax net unrealized gain			280		387		366		379		414		361
Equities - pretax net unrealized gain			1,297		1,397		1,478		1,387		1,434		1,349
Loss and loss expense reserves - STAT			4,357		4,302		4,158		4,112		4,129		4,037
Equity - GAAP			5,485		5,593		5,594		5,480		5,481		5,384
Surplus - STAT			4,419		4,436		4,472		4,364		4,332		4,308

The Cincinnati Life Insurance Company
Fixed maturities (fair value)			$	3,176	$	3,199	$	3,126	$	3,102	$	3,091	$	2,989
Equities (fair value)			8		9		9		8		8		14
Fixed maturities - pretax net unrealized gain			151		220		197		195		225		186
Equities - pretax net unrealized gain			3		4		3		3		3		6
Equity - GAAP			896		927		904		893		901		867
Surplus - STAT			217		219		223		228		224		232

CINF Second-Quarter 2015 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Statutory Statements of Income

	For the Three Months Ended June 30,										For the Six Months Ended June 30,
(Dollars in millions)	2015		2014			Change			% Change		2015		2014			Change			% Change
Underwriting income
Net premiums written	$	1,142	$	1,082		$	60		6		$	2,208	$	2,119		$	89		4
Unearned premiums increase	83		76			7			9		108		134			(26		)	(19	)
Earned premiums	$	1,059	$	1,006		$	53		5		$	2,100	$	1,985		$	115		6

Losses incurred	$	558	$	612		$	(54	)	(9	)	$	1,125	$	1,178		$	(53	)	(4	)
Allocated loss expenses incurred	39		39			—			—		99		90			9			10
Unallocated loss expenses incurred	57		56			1			2		119		115			4			3
Other underwriting expenses incurred	327		314			13			4		643		611			32			5
Workers compensation dividend incurred	3		4			(1		)	(25	)	7		8			(1		)	(13	)

Total underwriting deductions	$	984	$	1,025		$	(41	)	(4	)	$	1,993	$	2,002		$	(9	)	—
Net underwriting profit (loss)	$	75	$	(19	)	$	94		nm		$	107	$	(17	)	$	124		nm

Investment income
Gross investment income earned	$	94	$	93		$	1		1		$	186	$	184		$	2		1
Net investment income earned	92		91			1			1		183		181			2			1
Net realized capital gains	34		22			12			55		60		28			32			114
Net investment gains (net of tax)	$	126	$	113		$	13		12		$	243	$	209		$	34		16

Other income	$	2	$	1		$	1		100		$	4	$	3		$	1		33

Net income before federal income taxes	$	203	$	95		$	108		114		$	354	$	195		$	159		82
Federal and foreign income taxes incurred	$	53	$	23		$	30		130		$	84	$	40		$	44		110
Net income (statutory)	$	150	$	72		$	78		108		$	270	$	155		$	115		74
Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. 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 Second-Quarter 2015 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Losses Incurred Detail
(Dollars in millions)	Three months ended																			Six months ended					Nine months ended				Twelve months ended
	12/31/15	9/30/15	6/30/15			3/31/15		12/31/14			9/30/14			6/30/14			3/31/14			6/30/15		6/30/14			9/30/15	9/30/14			12/31/15	12/31/14
Consolidated
Current accident year losses greater than $5,000,000			$	5		$	12	$	12		$	7		$	11		$	—		$	17	$	12			$	19			$	30
Current accident year losses $1,000,000-$5,000,000			24			37		46			51			52			23			61		74				125				172
Large loss prior accident year reserve development			(4		)	15		(14		)	(6		)	17			10			11		27				21				7
Total large losses incurred			$	25		$	64	$	44		$	52		$	80		$	33		$	89	$	113			$	165			$	209
Losses incurred but not reported			38			43		112			17			(17		)	21			81		5				22				133
Other losses excluding catastrophe losses			417			418		365			432			436			427			835		863				1,295				1,660
Catastrophe losses			78			42		(13		)	11			112			86			120		197				208				197
Total losses incurred			$	558		$	567	$	508		$	512		$	611		$	567		$	1,125	$	1,178			$	1,690			$	2,199
Commercial Lines
Current accident year losses greater than $5,000,000			$	5		$	12	$	12		$	7		$	11		$	—		$	17	$	12			$	19			$	30
Current accident year losses $1,000,000-$5,000,000			14			24		39			45			47			18			38		64				109				149
Large loss prior accident year reserve development			(4		)	15		(11		)	(7		)	15			10			11		25				18				7
Total large losses incurred			$	15		$	51	$	40		$	45		$	73		$	28		$	66	$	101			$	146			$	186
Losses incurred but not reported			17			31		95			8			(35		)	22			48		(12		)		(4		)		90
Other losses excluding catastrophe losses			274			272		240			282			292			282			546		574				856				1,096
Catastrophe losses			43			29		(10		)	7			59			58			72		116				123				114
Total losses incurred			$	349		$	383	$	365		$	342		$	389		$	390		$	732	$	779			$	1,121			$	1,486
Personal Lines
Current accident year losses greater than $5,000,000			$	—		$	—	$	—		$	—		$	—		$	—		$	—	$	—			$	—			$	—
Current accident year losses $1,000,000-$5,000,000			10			12		6			6			4			4			22		8				14				20
Large loss prior accident year reserve development			—			—		(3		)	2			2			—			—		2				4				1
Total large losses incurred			$	10		$	12	$	3		$	8		$	6		$	4		$	22	$	10			$	18			$	21
Losses incurred but not reported			14			7		12			3			9			(5		)	21		4				7				19
Other losses excluding catastrophe losses			136			134		119			144			138			138			270		276				420				539
Catastrophe losses			34			13		(4		)	4			52			27			47		79				83				79
Total losses incurred			$	194		$	166	$	130		$	159		$	205		$	164		$	360	$	369			$	528			$	658
Excess & Surplus Lines
Current accident year losses greater than $5,000,000			$	—		$	—	$	—		$	—		$	—		$	—		$	—	$	—			$	—			$	—
Current accident year losses $1,000,000-$5,000,000			—			1		1			—			1			1			1		2				2				3
Large loss prior accident year reserve development			—			—		—			(1		)	—			—			—		—				(1		)		(1		)
Total large losses incurred			$	—		$	1	$	1		$	(1	)	$	1		$	1		$	1	$	2			$	1			$	2
Losses incurred but not reported			7			5		5			6			9			4			12		13				19				24
Other losses excluding catastrophe losses			7			12		6			6			6			7			19		13				19				25
Catastrophe losses			1			—		1			—			1			1			1		2				2				4
Total losses incurred			$	15		$	18	$	13		$	11		$	17		$	13		$	33	$	30			$	41			$	55

*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.

CINF Second-Quarter 2015 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Loss Ratio Detail
	Three months ended														Six months ended				Nine months ended			Twelve months ended
	12/31/15	9/30/15	6/30/15		3/31/15		12/31/14		9/30/14		6/30/14		3/31/14		6/30/15		6/30/14		9/30/15	9/30/14		12/31/15	12/31/14
Consolidated
Current accident year losses greater than $5,000,000			0.5	%	1.0	%	1.0	%	0.7	%	1.1	%	—	%	0.8	%	0.6	%		0.6	%		0.7	%
Current accident year losses $1,000,000-$5,000,000			2.1		3.6		4.7		4.8		5.0		2.3		2.9		3.8			4.2			4.3
Large loss prior accident year reserve development			(0.3	)	1.4		(1.4	)	(0.5	)	1.7		1.1		0.5		1.4			0.7			0.2
Total large loss ratio			2.3	%	6.0	%	4.3	%	5.0	%	7.8	%	3.4	%	4.2	%	5.8	%		5.5	%		5.2	%
Losses incurred but not reported			3.6		4.2		10.7		1.7		(1.6	)	2.2		3.9		0.2			0.8			3.3
Other losses excluding catastrophe losses			39.6		40.1		35.2		42.3		43.4		43.6		39.8		43.5			43.0			41.0
Catastrophe losses			7.3		4.1		(1.1	)	1.0		11.1		8.7		5.7		9.9			6.9			4.9
Total loss ratio			52.8	%	54.4	%	49.1	%	50.0	%	60.7	%	57.9	%	53.6	%	59.4	%		56.2	%		54.4	%
Commercial Lines
Current accident year losses greater than $5,000,000			0.7	%	1.6	%	1.5	%	1.0	%	1.6	%	—	%	1.2	%	0.8	%		0.9	%		1.0	%
Current accident year losses $1,000,000-$5,000,000			1.7		3.3		5.6		5.9		6.5		2.6		2.6		4.6			5.1			5.2
Large loss prior accident year reserve development			(0.5	)	2.0		(1.5	)	(0.9	)	2.1		1.4		0.7		1.8			0.9			0.3
Total large loss ratio			1.9	%	6.9	%	5.6	%	6.0	%	10.2	%	4.0	%	4.5	%	7.2	%		6.9	%		6.5	%
Losses incurred but not reported			2.2		4.3		12.8		1.1		(4.8	)	3.2		3.2		(0.9	)		(0.2	)		3.1
Other losses excluding catastrophe losses			37.0		37.1		32.6		39.6		41.0		40.6		37.0		40.8			40.2			38.4
Catastrophe losses			5.8		4.0		(1.1	)	0.8		8.3		8.3		4.9		8.3			5.8			4.0
Total loss ratio			46.9	%	52.3	%	49.9	%	47.5	%	54.7	%	56.1	%	49.6	%	55.4	%		52.7	%		52.0	%
Personal Lines
Current accident year losses greater than $5,000,000			—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%		—	%		—	%
Current accident year losses $1,000,000-$5,000,000			3.5		4.5		2.2		2.5		1.7		1.4		4.1		1.5			1.8			1.9
Large loss prior accident year reserve development			0.1		—		(1.1	)	0.8		0.6		0.3		—		0.5			0.7			0.1
Total large loss ratio			3.6	%	4.5	%	1.1	%	3.3	%	2.3	%	1.7	%	4.1	%	2.0	%		2.5	%		2.0	%
Losses incurred but not reported			5.1		2.7		4.5		1.3		3.5		(2.0	)	3.9		0.8			0.9			1.8
Other losses excluding catastrophe losses			50.0		49.9		44.8		54.1		53.6		54.5		49.8		54.0			54.1			51.9
Catastrophe losses			12.5		4.9		(1.5	)	1.7		20.0		10.6		8.7		15.4			10.7			7.6
Total loss ratio			71.2	%	62.0	%	48.9	%	60.4	%	79.4	%	64.8	%	66.5	%	72.2	%		68.2	%		63.3	%
Excess & Surplus Lines
Current accident year losses greater than $5,000,000			—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%		—	%		—	%
Current accident year losses $1,000,000-$5,000,000			—		2.5		3.3		—		3.1		3.2		1.2		3.1			1.9			2.3
Large loss prior accident year reserve development			—		—		(1.8	)	(1.3	)	—		(0.3	)	—		(0.1	)		(0.5	)		(0.9	)
Total large loss ratio			—	%	2.5	%	1.5	%	(1.3	)%	3.1	%	2.9	%	1.2	%	3.0	%		1.4	%		1.4	%
Losses incurred but not reported			18.3		11.8		12.4		14.6		25.7		13.1		15.1		19.6			17.7			16.4
Other losses excluding catastrophe losses			17.5		29.9		17.7		15.3		15.1		21.6		23.5		18.3			17.1			17.2
Catastrophe losses			0.4		0.8		2.9		(0.7	)	2.7		3.0		0.6		2.8			1.4			1.8
Total loss ratio			36.2	%	45.0	%	34.5	%	27.9	%	46.6	%	40.6	%	40.4	%	43.7	%		37.6	%		36.8	%
*Certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.

CINF Second-Quarter 2015 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Loss Claim Count Detail
	Three months ended								Six months ended		Nine months ended		Twelve months ended
	12/31/15	9/30/15	6/30/15	3/31/15	12/31/14	9/30/14	6/30/14	3/31/14	6/30/15	6/30/14	9/30/15	9/30/14	12/31/15	12/31/14
Consolidated
Current accident year reported losses greater than $5,000,000			1	2	2	1	2	—	3	2		3		5
Current accident year reported losses $1,000,000 - $5,000,000			14	27	31	31	34	15	42	52		83		120
Prior accident year reported losses on large losses			9	15	4	13	10	8	27	18		26		32
Non-Catastrophe reported losses on large losses total			24	44	37	45	46	23	72	72		112		157
Commercial Lines
Current accident year reported losses greater than $5,000,000			1	2	2	1	2	—	3	2		3		5
Current accident year reported losses $1,000,000 - $5,000,000			9	18	27	24	30	11	26	43		68		99
Prior accident year reported losses on large losses			9	14	3	11	9	7	26	17		23		28
Non-Catastrophe reported losses on large losses total			19	34	32	36	41	18	55	62		94		132
Personal Lines
Current accident year reported losses greater than $5,000,000			—	—	—	—	—	—	—	—		—		—
Current accident year reported losses $1,000,000 - $5,000,000			5	8	3	6	3	3	15	7		13		18
Prior accident year reported losses on large losses			—	1	—	2	1	1	1	1		3		3
Non-Catastrophe reported losses on large losses total			5	9	3	8	4	4	16	8		16		21
Excess & Surplus Lines
Current accident year reported losses greater than $5,000,000			—	—	—	—	—	—	—	—		—		—
Current accident year reported losses $1,000,000 - $5,000,000			—	1	1	1	1	1	1	2		2		3
Prior accident year reported losses on large losses			—	—	1	—	—	—	—	—		—		1
Non-Catastrophe reported losses on large losses total			—	1	2	1	1	1	1	2		2		4
*The sum of quarterly amounts may not equal the full year as each is computed independently.

CINF Second-Quarter 2015 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Direct Written Premiums by Risk State by Line of Business for the Six Months Ended June 30, 2015
	Commercial Lines										Personal Lines						E & S		Consolidated				Comm'l Change %		Personal Change %		E & S Change %		Consol Change %
Risk State	Comm Casualty		Comm Property		Comm Auto		Workers' Comp		Other Comm		Personal Auto		Home Owner		Other Personal		All Lines		2015		2014
																			Total		Total

OH	$	84.7	$	69.2	$	42.0	$	—	$	18.9	$	63.7	$	54.4	$	17.6	$	7.5	$	358.0	$	351.0	4.4		(1.2	)	5.1		2.2
IL	35.1		28.1		15.7		27.8		7.4		16.0		15.0		4.3		6.5		155.9		157.8		(2.2	)	(0.5	)	16.4		(1.2	)
IN	29.7		27.3		16.6		16.9		6.8		16.7		18.0		4.1		5.4		141.5		137.8		3.3		(1.6	)	3.5		1.9
PA	32.7		23.5		21.3		27.4		6.1		6.8		5.4		2.1		4.3		129.6		127.7		(0.1	)	6.3		39.1		1.5
GA	20.3		20.0		14.0		7.1		6.7		20.3		21.8		5.4		5.4		121.0		115.0		4.2		5.5		18.2		5.3
MI	22.8		19.0		11.6		10.4		6.1		23.1		16.1		2.7		4.1		115.9		109.9		(0.5	)	14.8		23.8		5.3
NC	22.1		24.0		12.0		9.5		6.9		16.6		13.5		4.0		3.4		112.0		107.3		(0.2	)	16.6		2.5		4.4
TN	19.6		19.1		11.4		5.0		5.9		9.5		11.3		3.0		2.2		87.0		85.3		(0.5	)	8.7		4.1		1.9
KY	14.2		16.7		10.1		2.0		3.3		13.9		12.9		3.1		2.7		78.9		76.9		2.0		2.5		13.2		2.5
AL	14.2		17.4		6.8		0.5		4.6		10.4		16.9		3.4		4.1		78.3		77.0		(0.4	)	3.8		8.0		1.7
VA	18.3		15.8		11.6		9.5		5.1		5.9		5.1		1.6		2.7		75.6		74.8		—		7.5		(2.9	)	1.0
MN	18.2		13.2		6.5		7.0		2.7		9.2		9.3		2.6		2.5		71.2		62.8		12.7		12.2		32.6		13.2
WI	17.1		12.9		8.2		16.5		3.5		4.5		4.6		1.8		1.5		70.6		72.4		(2.7	)	1.0		(18.5	)	(2.6	)
TX	23.5		14.4		14.7		0.7		2.2		—		—		—		8.4		63.9		62.3		0.2		(39.8	)	21.7		2.6
MO	15.3		16.0		7.9		7.6		3.3		3.3		4.6		1.0		3.6		62.6		61.1		1.7		5.3		9.1		2.6
MD	10.7		6.4		8.0		6.5		1.9		3.9		3.1		0.9		1.5		42.9		39.2		4.9		31.5		16.9		9.4
IA	10.0		9.9		4.3		8.5		3.0		2.4		2.8		0.8		1.1		42.8		44.2		(3.5	)	(1.0	)	4.0		(3.0	)
NY	17.2		8.6		6.4		1.6		1.9		2.3		1.1		0.3		1.4		40.8		38.5		3.7		42.4		—		6.1
AR	5.6		9.7		3.8		1.3		2.8		5.0		5.6		1.3		1.4		36.5		34.2		1.8		15.3		9.4		6.2
FL	13.4		8.6		4.8		0.6		1.5		2.3		0.7		0.4		3.3		35.6		39.3		4.1		(63.4	)	49.9		(9.1	)
AZ	8.6		4.7		5.9		3.2		1.5		3.0		2.1		0.8		1.8		31.6		29.6		0.7		31.0		38.1		7.0
UT	9.2		4.9		6.3		0.2		1.9		4.2		2.2		0.5		1.5		30.9		27.4		9.3		14.3		54.4		11.9
SC	6.2		5.7		4.1		1.8		2.2		4.8		3.2		0.9		1.6		30.5		27.5		3.7		25.2		41.0		10.8
KS	6.2		7.3		3.4		3.9		1.9		2.5		3.6		0.7		0.7		30.2		29.8		1.5		(3.2	)	56.2		1.4
CO	9.3		5.1		6.0		0.4		1.0		—		0.2		—		3.2		25.2		22.4		9.5		14.1		40.0		12.7
MT	9.4		4.9		4.9		—		0.9		1.3		1.5		0.3		0.4		23.6		21.0		13.5		9.1		(9.5	)	12.4
NE	5.2		5.5		2.7		5.0		1.3		0.4		0.5		0.1		1.0		21.7		19.5		14.2		(1.3	)	(10.7	)	11.9
ID	7.1		4.2		4.2		0.1		1.1		1.7		1.1		0.3		0.8		20.6		19.3		5.2		14.5		2.9		6.4
OR	5.6		3.5		3.8		0.1		1.1		1.3		0.6		0.2		2.5		18.7		13.5		32.4		102.4		40.1		38.7
WV	5.5		4.6		3.7		1.1		0.7		—		0.2		0.1		1.5		17.4		18.3		(4.9	)	(14.8	)	3.7		(4.4	)
VT	2.5		2.3		1.4		3.2		1.0		0.7		0.7		0.2		0.4		12.4		12.9		(3.7	)	1.8		(17.9	)	(3.6	)
ND	4.7		3.3		2.3		—		0.7		0.4		0.4		0.1		0.2		12.1		12.4		(1.6	)	2.1		(31.7	)	(1.9	)
NM	4.3		2.2		2.5		0.6		0.8		—		—		—		0.4		10.8		8.6		25.8		(35.0	)	9.1		25.0
WA	3.6		2.5		2.5		—		1.0		—		—		—		0.9		10.5		9.7		6.4		(200.7	)	26.4		7.8
NH	2.1		1.8		1.1		1.8		0.3		0.9		0.8		0.3		0.3		9.4		9.4		1.0		(1.9	)	(6.4	)	0.1
CT	2.1		2.1		1.2		0.8		0.4		0.5		0.5		0.2		0.3		8.1		5.1		39.2		664.4		81.7		59.1
DE	2.7		1.6		1.5		1.1		0.5		—		—		—		0.2		7.6		6.4		19.4		(100.0	)	60.5		20.4
SD	1.5		1.8		1.0		1.5		0.5		—		—		—		0.3		6.6		7.4		(9.7	)	67.2		(5.6	)	(9.6	)
WY	1.3		1.2		0.7		—		0.3		—		—		—		0.3		3.8		3.2		18.9		23.5		11.0		18.3
All Other	2.7		1.1		1.7		3.6		1.1		—		—		—		0.6		10.8		10.8		1.0		20.9		25.4		2.3
Total	$	544.5	$	450.1	$	298.6	$	194.8	$	120.8	$	257.5	$	239.8	$	65.1	$	91.9	$	2,263.1	$	2,188.7	2.4		4.4		15.4		3.4
Other Direct	—		1.0		2.2		3.6		—		5.6		0.1		—		—		12.5		11.3		9.3		11.0		nm		10.0
Total Direct	$	544.5	$	451.1	$	300.8	$	198.4	$	120.8	$263.1		$	239.9	$	65.1	$	91.9	$	2,275.6	$	2,200.0	2.5		4.5		15.4		3.4
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. nm - Not meaningful

CINF Second-Quarter 2015 Supplemental Financial Data



Quarterly Property Casualty Data - Commercial Lines

(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/15	9/30/15	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			6/30/15			6/30/14			9/30/15	9/30/14			12/31/15	12/31/14
Commercial casualty:
Written premiums			$	274		$	266		$	234		$	228		$	249		$	258		$	540		$	507			$	735			$	969
Earned premiums			252			244			243			237			234			224			496			458				695				938
Current accident year before catastrophe losses			59.6		%	59.2		%	59.2		%	60.2		%	61.7		%	56.3		%	59.4		%	59.1		%		59.4		%		59.4		%
Current accident year catastrophe losses			—			—			—			—			—			—			—			—				—				—
Prior accident years before catastrophe losses			(9.1		)	1.1			12.1			(3.6		)	(10.5		)	3.6			(4.1		)	(3.6		)		(3.6		)		0.5
Prior accident years catastrophe losses			—			—			—			—			—			—			—			—				—				—
Total loss and loss expense ratio			50.5		%	60.3		%	71.3		%	56.6		%	51.2		%	59.9		%	55.3		%	55.5		%		55.8		%		59.9		%
Commercial property:
Written premiums			$	218		$	206		$	192		$	194		$	197		$	193		$	424		$	390			$	584			$	776
Earned premiums			201			196			191			186			180			171			399			351				537				728
Current accident year before catastrophe losses			42.1		%	53.6		%	45.7		%	54.3		%	50.8		%	53.4		%	47.8		%	52.1		%		52.9		%		51.0		%
Current accident year catastrophe losses			19.6			16.7			0.5			5.2			25.8			27.7			18.2			26.7				19.3				14.3
Prior accident years before catastrophe losses			(2.0		)	(1.9		)	1.8			(3.1		)	(9.8		)	(0.6		)	(2.0		)	(5.3		)		(4.6		)		(2.9		)
Prior accident years catastrophe losses			0.1			(3.8		)	(2.7		)	(1.3		)	(2.3		)	(0.9		)	(1.8		)	(1.6		)		(1.5		)		(1.8		)
Total loss and loss expense ratio			59.8		%	64.6		%	45.3		%	55.1		%	64.5		%	79.6		%	62.2		%	71.9		%		66.1		%		60.6		%
Commercial auto:
Written premiums			$	149		$	149		$	131		$	128		$	144		$	145		$	298		$	289			$	417			$	548
Earned premiums			139			136			137			133			132			126			275			258				391				528
Current accident year before catastrophe losses			75.8		%	72.3		%	65.6		%	69.1		%	72.1		%	68.0		%	74.1		%	70.0		%		69.8		%		68.7		%
Current accident year catastrophe losses			1.3			—			(0.1		)	(0.6		)	4.1			—			0.7			2.1				1.2				0.9
Prior accident years before catastrophe losses			8.3			8.6			11.2			9.3			9.0			(0.2		)	8.4			4.5				6.1				7.4
Prior accident years catastrophe losses			(0.2		)	(0.1		)	—			—			—			(0.2		)	(0.2		)	(0.1		)		(0.1		)		(0.1		)
Total loss and loss expense ratio			85.2		%	80.8		%	76.7		%	77.8		%	85.2		%	67.6		%	83.0		%	76.5		%		77.0		%		76.9		%
Workers' compensation:
Written premiums			$	89		$	104		$	81		$	86		$	92		$	106		$	193		$	198			$	284			$	365
Earned premiums			90			93			90			93			95			92			183			187				280				370
Current accident year before catastrophe losses			77.6		%	71.5		%	75.9		%	75.0		%	83.2		%	76.8		%	74.5		%	80.0		%		78.4		%		77.8		%
Current accident year catastrophe losses			—			—			—			—			—			—			—			—				—				—
Prior accident years before catastrophe losses			(44.8		)	(16.1		)	(7.5		)	(16.1		)	(21.2		)	(10.3		)	(30.3		)	(15.8		)		(15.9		)		(13.9		)
Prior accident years catastrophe losses			—			—			—			—			—			—			—			—				—				—
Total loss and loss expense ratio			32.8		%	55.4		%	68.4		%	58.9		%	62.0		%	66.5		%	44.2		%	64.2		%		62.5		%		63.9		%
Other commercial:
Written premiums			$	55		$	58		$	61		$	68		$	66		$	69		$	113		$	135			$	203			$	264
Earned premiums			61			64			69			71			73			79			125			152				223				292
Current accident year before catastrophe losses			42.7		%	54.4		%	58.5		%	50.2		%	59.6		%	46.7		%	48.6		%	52.9		%		52.0		%		53.4		%
Current accident year catastrophe losses			3.4			9.7			(2.7		)	2.0			17.8			17.9			6.6			17.9				12.8				9.2
Prior accident years before catastrophe losses			(13.6		)	(0.2		)	(13.8		)	(5.6		)	(4.2		)	3.5			(6.7		)	(0.2		)		(1.9		)		(4.8		)
Prior accident years catastrophe losses			1.2			(2.6		)	(1.2		)	(0.8		)	0.8			(1.3		)	(0.7		)	(0.3		)		(0.5		)		(0.7		)
Total loss and loss expense ratio			33.7		%	61.3		%	40.8		%	45.8		%	74.0		%	66.8		%	47.8		%	70.3		%		62.4		%		57.1		%
*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 Second-Quarter 2015 Supplemental Financial Data



Quarterly Property Casualty Data - Personal Lines

(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/15	9/30/15	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			6/30/15			6/30/14			9/30/15	9/30/14			12/31/15	12/31/14
Personal auto:
Written premiums			$	142		$	114		$	114		$	135		$	133		$	107		$	256		$	240			$	375			$	489
Earned premiums			125			123			122			121			117			116			248			233				354				476
Current accident year before catastrophe losses			79.7		%	81.6		%	70.2		%	73.9		%	80.5		%	79.5		%	80.8		%	80.1		%		77.9		%		76.0		%
Current accident year catastrophe losses			2.3			0.2			(1.2		)	1.1			4.9			0.5			1.2			2.7				2.2				1.3
Prior accident years before catastrophe losses			5.8			3.0			2.8			2.0			(1.7		)	(3.4		)	4.4			(2.6		)		(1.0		)		—
Prior accident years catastrophe losses			(0.1		)	(0.2		)	—			—			(0.2		)	(0.4		)	(0.3		)	(0.3		)		(0.2		)		(0.2		)
Total loss and loss expense ratio			87.7		%	84.6		%	71.8		%	77.0		%	83.5		%	76.2		%	86.1		%	79.9		%		78.9		%		77.1		%
Homeowner:
Written premiums			$	132		$	98		$	107		$	123		$	128		$	98		$	230		$	226			$	349			$	456
Earned premiums			114			114			113			110			111			109			228			220				330				443
Current accident year before catastrophe losses			52.9		%	55.5		%	44.3		%	51.1		%	59.5		%	61.3		%	54.1		%	60.4		%		57.4		%		54.0		%
Current accident year catastrophe losses			25.6			12.3			(0.9		)	4.8			41.5			28.3			19.0			35.0				25.0				18.3
Prior accident years before catastrophe losses			(2.4		)	(5.1		)	(0.2		)	(0.7		)	3.6			(6.5		)	(3.7		)	(1.4		)		(1.2		)		(0.9		)
Prior accident years catastrophe losses			(0.3		)	(1.2		)	(1.2		)	(1.2		)	(0.9		)	(5.4		)	(0.7		)	(3.2		)		(2.6		)		(2.2		)
Total loss and loss expense ratio			75.8		%	61.5		%	42.0		%	54.0		%	103.7		%	77.7		%	68.7		%	90.8		%		78.6		%		69.2		%
Other personal:
Written premiums			$	35		$	29		$	28		$	36		$	33		$	26		$	64		$	59			$	95			$	123
Earned premiums			33			31			31			32			30			29			64			59				91				122
Current accident year before catastrophe losses			58.2		%	49.6		%	44.3		%	59.3		%	42.3		%	46.5		%	53.9		%	44.3		%		49.6		%		48.3		%
Current accident year catastrophe losses			8.4			2.8			0.5			0.4			7.9			7.8			5.6			7.8				5.2				4.0
Prior accident years before catastrophe losses			(4.9		)	1.1			(1.3		)	17.3			(5.4		)	(1.9		)	(1.9		)	(3.6		)		3.8				2.5
Prior accident years catastrophe losses			0.0			(0.8		)	(0.1		)	(0.4		)	(0.5		)	0.2			(0.4		)	(0.1		)		(0.2		)		(0.2		)
Total loss and loss expense ratio			61.7		%	52.7		%	43.4		%	76.6		%	44.3		%	52.6		%	57.2		%	48.4		%		58.4		%		54.6		%

Quarterly Property Casualty Data - Excess & Surplus Lines

(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/15	9/30/15	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			6/30/15			6/30/14			9/30/15	9/30/14			12/31/15	12/31/14
Excess & Surplus:
Written premiums			$	46		$	42		$	39		$	39		$	40		$	35		$	88		$	75			$	114			$	153
Earned premiums			42			40			39			42			34			33			82			67				109				148
Current accident year before catastrophe losses			69.3		%	72.1		%	62.1		%	57.8		%	75.4		%	80.6		%	70.7		%	77.9		%		70.2		%		68.1		%
Current accident year catastrophe losses			0.6			1.2			2.9			(0.7		)	2.3			3.0			0.9			2.6				1.4				1.8
Prior accident years before catastrophe losses			(20.2		)	(13.6		)	(16.1		)	(15.4		)	(21.3		)	(27.1		)	(17.0		)	(24.1		)		(20.8		)		(19.6		)
Prior accident years catastrophe losses			(0.1		)	(0.3		)	0.1			0.1			0.6			0.1			(0.2		)	0.4				0.2				0.2
Total loss and loss expense ratio			49.6		%	59.4		%	49.0		%	41.8		%	57.0		%	56.6		%	54.4		%	56.8		%		51.0		%		50.5		%
*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 Second-Quarter 2015 Supplemental Financial Data



Cincinnati Insurance Companies Consolidated
Loss and Loss Expense Analysis

(Dollars in millions)									Change in			Change in			Change in			Total									Loss
	Paid			Paid loss		Total			case			IBNR			loss expense			change in			Case			IBNR			expense		Total
	losses			expense		paid			reserves			reserves			reserves			reserves			incurred			incurred			incurred		incurred
Gross loss and loss expense incurred for the six months ended June 30, 2015
Commercial casualty	$	124		$	70	$	194		$	54		$	18		$	9		$	81		$	178		$	18		$	79	$	275
Commercial property	209			18		227			32			4			—			36			241			4			18		263
Commercial auto	154			27		181			7			29			12			48			161			29			39		229
Workers' compensation	90			19		109			(12		)	(1		)	(8		)	(21		)	78			(1		)	11		88
Other commercial	65			11		76			(18		)	(1		)	2			(17		)	47			(1		)	13		59
Total commercial lines	642			145		787			63			49			15			127			705			49			160		914

Personal auto	155			29		184			3			22			5			30			158			22			34		214
Homeowners	123			13		136			21			1			(1		)	21			144			1			12		157
Other personal	28			2		30			1			6			—			7			29			6			2		37
Total personal lines	306			44		350			25			29			4			58			331			29			48		408

Commercial casualty & property	12			8		20			8			12			4			24			20			12			12		44
Total excess & surplus lines	12			8		20			8			12			4			24			20			12			12		44
Total property casualty	$	960		$	197	$	1,157		$	96		$	90		$	23		$	209		$	1,056		$	90		$	220	$	1,366

Ceded loss and loss expense incurred for the six months ended June 30, 2015
Commercial casualty	$	2		$	2	$	4		$	(4	)	$	1		$	—		$	(3	)	$	(2	)	$	1		$	2	$	1
Commercial property	—			—		—			17			—			—			17			17			—			—		17
Commercial auto	—			—		—			1			—			—			1			1			—			—		1
Workers' compensation	5			—		5			1			(1		)	—			—			6			(1		)	—		5
Other commercial	3			—		3			(4		)	—			—			(4		)	(1		)	—			—		(1		)
Total commercial lines	10			2		12			11			—			—			11			21			—			2		23

Personal auto	1			—		1			(1		)	—			—			(1		)	—			—			—		—
Homeowners	1			—		1			—			—			—			—			1			—			—		1
Other personal	—			—		—			—			—			—			—			—			—			—		—
Total personal lines	2			—		2			(1		)	—			—			(1		)	1			—			—		1

Commercial casualty & property	(1		)	—		(1		)	1			(1		)	—			—			—			(1		)	—		(1		)
Total excess & surplus lines	(1		)	—		(1		)	1			(1		)	—			—			—			(1		)	—		(1		)
Total property casualty	$	11		$	2	$	13		$	11		$	(1	)	$	—		$	10		$	22		$	(1	)	$	2	$	23

Net loss and loss expense incurred for the six months ended June 30, 2015
Commercial casualty	$	122		$	68	$	190		$	58		$	17		$	9		$	84		$	180		$	17		$	77	$	274
Commercial property	209			18		227			15			4			—			19			224			4			18		246
Commercial auto	154			27		181			6			29			12			47			160			29			39		228
Workers' compensation	85			19		104			(13		)	—			(8		)	(21		)	72			—			11		83
Other commercial	62			11		73			(14		)	(1		)	2			(13		)	48			(1		)	13		60
Total commercial lines	632			143		775			52			49			15			116			684			49			158		891

Personal auto	154			29		183			4			22			5			31			158			22			34		214
Homeowners	122			13		135			21			1			(1		)	21			143			1			12		156
Other personal	28			2		30			1			6			—			7			29			6			2		37
Total personal lines	304			44		348			26			29			4			59			330			29			48		407

Commercial casualty & property	13			8		21			7			13			4			24			20			13			12		45
Total excess & surplus lines	13			8		21			7			13			4			24			20			13			12		45
Total property casualty	$	949		$	195	$	1,144		$	85		$	91		$	23		$	199		$	1,034		$	91		$	218	$	1,343

CINF Second-Quarter 2015 Supplemental Financial Data



Cincinnati Insurance Companies Consolidated
Loss and Loss Expense Analysis

(Dollars in millions)									Change in			Change in			Change in			Total									Loss
	Paid		Paid loss			Total			case			IBNR			loss expense			change 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 June 30, 2015
Commercial casualty	$	73	$	36		$	109		$	21		$	3		$	(5	)	$	19		$	94		$	3		$	31		$	128
Commercial property	113		8			121			5			13			(2		)	16			118			13			6			137
Commercial auto	76		13			89			3			17			9			29			79			17			22			118
Other commercial	45		9			54			(5		)	(13		)	(2		)	(20		)	40			(13		)	7			34
Specialty packages	28		5			33			(9		)	—			(4		)	(13		)	19			—			1			20
Total commercial lines	335		71			406			15			20			(4		)	31			350			20			67			437

Personal auto	78		14			92			1			15			2			18			79			15			16			110
Homeowners	76		7			83			4			—			(1		)	3			80			—			6			86
Other personal	11		1			12			2			6			—			8			13			6			1			20
Total personal lines	165		22			187			7			21			1			29			172			21			23			216

Commercial casualty & property	8		4			12			1			8			2			11			9			8			6			23
Total excess & surplus lines	8		4			12			1			8			2			11			9			8			6			23
Total property casualty	$	508	$	97		$	605		$	23		$	49		$	(1	)	$	71		$	531		$	49		$	96		$	676

Ceded loss and loss expense incurred for the three months ended June 30, 2015
Commercial casualty	$	2	$	1		$	3		$	(2	)	$	—		$	—		$	(2	)	$	—		$	—		$	1		$	1
Commercial property	—		—			—			18			—			—			18			18			—			—			18
Commercial auto	—		—			—			—			—			—			—			—			—			—			—
Workers' compensation	2		—			2			1			(1		)	—			—			3			(1		)	—			2
Other commercial	2		—			2			(3		)	—			—			(3		)	(1		)	—			—			(1		)
Total commercial lines	6		1			7			14			(1		)	—			13			20			(1		)	1			20

Personal auto	—		(1		)	(1		)	—			—			—			—			—			—			(1		)	(1		)
Homeowners	1		—			1			—			—			—			—			1			—			—			1
Other personal	—		—			—			—			—			—			—			—			—			—			—
Total personal lines	1		(1		)	—			—			—			—			—			1			—			(1		)	—

Commercial casualty & property	—		—			—			1			1			—			2			1			1			—			2
Total excess & surplus lines	—		—			—			1			1			—			2			1			1			—			2
Total property casualty	$	7	$	—		$	7		$	15		$	—		$	—		$	15		$	22		$	—		$	—		$	22

Net loss and loss expense incurred for the three months ended June 30, 2015
Commercial casualty	$	71	$	35		$	106		$	23		$	3		$	(5	)	$	21		$	94		$	3		$	30		$	127
Commercial property	113		8			121			(13		)	13			(2		)	(2		)	100			13			6			119
Commercial auto	76		13			89			3			17			9			29			79			17			22			118
Workers' compensation	43		9			52			(6		)	(12		)	(2		)	(20		)	37			(12		)	7			32
Other commercial	26		5			31			(6		)	—			(4		)	(10		)	20			—			1			21
Total commercial lines	329		70			399			1			21			(4		)	18			330			21			66			417

Personal auto	78		15			93			1			15			2			18			79			15			17			111
Homeowners	75		7			82			4			—			(1		)	3			79			—			6			85
Other personal	11		1			12			2			6			—			8			13			6			1			20
Total personal lines	164		23			187			7			21			1			29			171			21			24			216

Commercial casualty & property	8		4			12			—			7			2			9			8			7			6			21
Total excess & surplus lines	8		4			12			—			7			2			9			8			7			6			21
Total property casualty	$	501	$	97		$	598		$	8		$	49		$	(1	)	$	56		$	509		$	49		$	96		$	654

CINF Second-Quarter 2015 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Quarterly Property Casualty Data

(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/15	9/30/15	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			6/30/15			6/30/14			9/30/15	9/30/14			12/31/15	12/31/14
Premiums
Agency renewal written premiums			$	1,018		$	983		$	906		$	958		$	974		$	956		$	2,001		$	1,930			$	2,888			$	3,794
Agency new business written premiums			138			116			122			125			133			123			254			256				381				503
Other written premiums			(14		)	(33		)	(41		)	(46		)	(25		)	(42		)	(47		)	(67		)		(113		)		(154		)
Net written premiums – statutory*			$	1,142		$	1,066		$	987		$	1,037		$	1,082		$	1,037		$	2,208		$	2,119			$	3,156			$	4,143
Unearned premium change			(83		)	(25		)	48			(12		)	(76		)	(58		)	(108		)	(134		)		(146		)		(98		)
Earned premiums			$	1,059		$	1,041		$	1,035		$	1,025		$	1,006		$	979		$	2,100		$	1,985			$	3,010			$	4,045
Year over year change %
Agency renewal written premiums			5		%	3		%	6		%	5		%	11		%	13		%	4		%	12		%		9		%		9		%
Agency new business written premiums			4			(6		)	(5		)	(11		)	(4		)	(9		)	(1		)	(7		)		(8		)		(7		)
Other written premiums			44			21			45			(84		)	26			(320		)	30			(52		)		(64		)		(8		)
Net written premiums – statutory*			6			3			9			1			10			7			4			8				6				6
Paid losses and loss expenses
Losses paid			$	501		$	448		$	478		$	543		$	517		$	484		$	949		$	1,001			$	1,543			$	2,021
Loss expenses paid			97			98			98			96			98			100			195			198				295				392
Loss and loss expenses paid			$	598		$	546		$	576		$	639		$	615		$	584		$	1,144		$	1,199			$	1,838			$	2,413
Incurred losses and loss expenses
Loss and loss expense incurred			$	654		$	689		$	622		$	622		$	707		$	676		$	1,343		$	1,383			$	2,005			$	2,627
Loss and loss expenses paid as a % of incurred			91.4		%	79.2		%	92.6		%	102.7		%	87.0		%	86.4		%	85.2		%	86.7		%		91.7		%		91.9		%
Statutory combined ratio
Loss ratio			52.7		%	54.4		%	49.0		%	50.0		%	60.7		%	57.9		%	53.6		%	59.4		%		56.2		%		54.4		%
Loss adjustment expense ratio			9.1			11.7			11.1			10.7			9.5			11.2			10.3			10.3				10.4				10.6
Net underwriting expense ratio			28.9			30.0			31.7			30.6			29.4			29.0			29.4			29.2				29.7				30.1
Statutory combined ratio			90.7		%	96.1		%	91.8		%	91.3		%	99.6		%	98.1		%	93.3		%	98.9		%		96.3		%		95.1		%
Contribution from catastrophe losses			7.5			4.1			(0.9		)	1.2			11.4			8.9			5.8			10.2				7.1				5.1
Statutory combined ratio excl. catastrophe losses			83.2		%	92.0		%	92.7		%	90.1		%	88.2		%	89.2		%	87.5		%	88.7		%		89.2		%		90.0		%
GAAP combined ratio
GAAP combined ratio			92.4		%	97.5		%	90.4		%	91.0		%	100.9		%	100.3		%	94.9		%	100.6		%		97.3		%		95.6		%
Contribution from catastrophe losses			7.5			4.1			(0.9		)	1.2			11.4			8.9			5.8			10.2				7.1				5.1
GAAP combined ratio excl. catastrophe losses			84.9		%	93.4		%	91.3		%	89.8		%	89.5		%	91.4		%	89.1		%	90.4		%		90.2		%		90.5		%
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 Second-Quarter 2015 Supplemental Financial Data



Cincinnati Insurance Companies
Quarterly Property Casualty Data - Commercial Lines

(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/15	9/30/15	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			6/30/15			6/30/14			9/30/15	9/30/14			12/31/15	12/31/14
Premiums
Agency renewal written premiums			$	699		$	730		$	645		$	651		$	669		$	713		$	1,429		$	1,382			$	2,033			$	2,678
Agency new business written premiums			93			79			86			89			95			90			172			185				274				360
Other written premiums			(5		)	(26		)	(32		)	(36		)	(16		)	(32		)	(31		)	(48		)		(84		)		(116		)
Net written premiums – statutory*			$	787		$	783		$	699		$	704		$	748		$	771		$	1,570		$	1,519			$	2,223			$	2,922
Unearned premium change			(42		)	(50		)	31			16			(34		)	(79		)	(92		)	(113		)		(97		)		(66		)
Earned premiums			$	745		$	733		$	730		$	720		$	714		$	692		$	1,478		$	1,406			$	2,126			$	2,856
Year over year change %
Agency renewal written premiums			4		%	2		%	6		%	3		%	11		%	13		%	3		%	12		%		9		%		8		%
Agency new business written premiums			(2		)	(12		)	(7		)	(13		)	(4		)	(7		)	(7		)	(6		)		(8		)		(8		)
Other written premiums			69			19			49			(140		)	33			nm			35			(100		)		(115		)		(14		)
Net written premiums – statutory*			5			2			10			(2		)	10			6			3			8				5				6
Paid losses and loss expenses
Losses paid			$	329		$	303		$	325		$	368		$	347		$	327		$	632		$	674			$	1,041			$	1,366
Loss expenses paid			71			73			75			74			75			76			144			151				226				300
Loss and loss expenses paid			$	400		$	376		$	400		$	442		$	422		$	403		$	776		$	825			$	1,267			$	1,666
Incurred losses and loss expenses
Loss and loss expense incurred			$	417		$	474		$	454		$	428		$	461		$	469		$	891		$	930			$	1,358			$	1,812
Loss and loss expenses paid as a % of incurred			95.9		%	79.3		%	88.1		%	103.3		%	91.5		%	85.9		%	87.1		%	88.7		%		93.3		%		91.9		%
Statutory combined ratio
Loss ratio			46.9		%	52.2		%	49.9		%	47.5		%	54.7		%	56.1		%	49.6		%	55.4		%		52.8		%		52.0		%
Loss adjustment expense ratio			9.1			12.5			12.4			11.9			9.8			11.8			10.7			10.8				11.1				11.5
Net underwriting expense ratio			29.9			29.9			32.5			32.2			30.5			28.5			29.9			29.5				30.3				30.8
Statutory combined ratio			85.9		%	94.6		%	94.8		%	91.6		%	95.0		%	96.4		%	90.2		%	95.7		%		94.2		%		94.3		%
Contribution from catastrophe losses			5.9			4.0			(1.0		)	1.0			8.6			8.5			5.0			8.5				6.0				4.3
Statutory combined ratio excl. catastrophe losses			80.0		%	90.6		%	95.8		%	90.6		%	86.4		%	87.9		%	85.2		%	87.2		%		88.2		%		90.0		%
GAAP combined ratio
GAAP combined ratio			87.2		%	96.6		%	93.6		%	90.7		%	96.3		%	99.9		%	91.9		%	98.1		%		95.6		%		95.1		%
Contribution from catastrophe losses			5.9			4.0			(1.0		)	1.0			8.6			8.5			5.0			8.5				6.0				4.3
GAAP combined ratio excl. catastrophe losses			81.3		%	92.6		%	94.6		%	89.7		%	87.7		%	91.4		%	86.9		%	89.6		%		89.6		%		90.8		%
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 Second-Quarter 2015 Supplemental Financial Data



Cincinnati Insurance Companies
Quarterly Property Casualty Data - Personal Lines

(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/15	9/30/15	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			6/30/15			6/30/14			9/30/15	9/30/14			12/31/15	12/31/14
Premiums
Agency renewal written premiums			$	285		$	223		$	233		$	278		$	276		$	218		$	508		$	494			$	772			$	1,005
Agency new business written premiums			30			24			24			23			24			21			54			45				68				92
Other written premiums			(6		)	(6		)	(8		)	(7		)	(6		)	(8		)	(12		)	(14		)		(21		)		(29		)
Net written premiums – statutory*			$	309		$	241		$	249		$	294		$	294		$	231		$	550		$	525			$	819			$	1,068
Unearned premium change			(37		)	27			17			(31		)	(36		)	23			(10		)	(13		)		(44		)		(27		)
Earned premiums			$	272		$	268		$	266		$	263		$	258		$	254		$	540		$	512			$	775			$	1,041
Year over year change %
Agency renewal written premiums			3		%	2		%	4		%	8		%	10		%	12		%	3		%	11		%		10		%		8		%
Agency new business written premiums			25			14			0			(18		)	(20		)	(25		)	20			(22		)		(21		)		(16		)
Other written premiums			—			25			11			13			25			—			14			13				13				12
Net written premiums – statutory*			5			4			4			6			8			7			5			8				7				6
Paid losses and loss expenses
Losses paid			$	165		$	139		$	147		$	170		$	167		$	152		$	304		$	319			$	489			$	636
Loss expenses paid			22			22			21			19			20			21			44			41				60				81
Loss and loss expenses paid			$	187		$	161		$	168		$	189		$	187		$	173		$	348		$	360			$	549			$	717
Incurred losses and loss expenses
Loss and loss expense incurred			$	216		$	191		$	148		$	177		$	227		$	188		$	407		$	415			$	592			$	740
Loss and loss expenses paid as a % of incurred			86.6		%	84.3		%	113.5		%	106.8		%	82.4		%	92.0		%	85.5		%	86.7		%		92.7		%		96.9		%
Statutory combined ratio
Loss ratio			71.1		%	61.9		%	48.9		%	60.5		%	79.4		%	64.8		%	66.6		%	72.2		%		68.2		%		63.3		%
Loss adjustment expense ratio			8.5			9.1			6.9			6.9			8.3			9.3			8.8			8.8				8.1				7.8
Net underwriting expense ratio			26.2			30.4			29.3			26.3			26.6			30.5			28.0			28.3				27.6				28.0
Statutory combined ratio			105.8		%	101.4		%	85.1		%	93.7		%	114.3		%	104.6		%	103.3		%	109.3		%		103.9		%		99.1		%
Contribution from catastrophe losses			12.6			4.9			(1.4		)	2.0			20.4			10.8			8.8			15.7				11.0				7.8
Statutory combined ratio excl. catastrophe losses			93.2		%	96.5		%	86.5		%	91.7		%	93.9		%	93.8		%	94.5		%	93.6		%		92.9		%		91.3		%
GAAP combined ratio
GAAP combined ratio			109.2		%	101.4		%	83.7		%	95.0		%	115.8		%	103.0		%	105.3		%	109.4		%		104.5		%		99.2		%
Contribution from catastrophe losses			12.6			4.9			(1.4		)	2.0			20.4			10.8			8.8			15.7				11.0				7.8
GAAP combined ratio excl. catastrophe losses			96.6		%	96.5		%	85.1		%	93.0		%	95.4		%	92.2		%	96.5		%	93.7		%		93.5		%		91.4		%
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 Second-Quarter 2015 Supplemental Financial Data



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
	12/31/15	9/30/15	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			6/30/15			6/30/14			9/30/15	9/30/14			12/31/15	12/31/14
Premiums
Agency renewal written premiums			$	34		$	30		$	28		$	29		$	29		$	25		$	64		$	54			$	83			$	111
Agency new business written premiums			15			13			12			13			14			12			28			26				39				51
Other written premiums			(3		)	(1		)	(1		)	(3		)	(3		)	(2		)	(4		)	(5		)		(8		)		(9		)
Net written premiums – statutory*			$	46		$	42		$	39		$	39		$	40		$	35		$	88		$	75			$	114			$	153
Unearned premium change			(4		)	(2		)	0			3			(6		)	(2		)	(6		)	(8		)		(5		)		(5		)
Earned premiums			$	42		$	40		$	39		$	42		$	34		$	33		$	82		$	67			$	109			$	148
Year over year change %
Agency renewal written premiums			17		%	20		%	17		%	16		%	12		%	32		%	19		%	20		%		19		%		18		%
Agency new business written premiums			7			8			0			18			56			20			8			37				30				21
Other written premiums			—			50			50			(50		)	(50		)	0			20			(25		)		(33		)		(13		)
Net written premiums – statutory*			15			20			15			15			21			30			17			25				21				20
Paid losses and loss expenses
Losses paid			$	8		$	5		$	6		$	5		$	3		$	5		$	13		$	8			$	13			$	19
Loss expenses paid			3			4			2			3			3			3			7			6				9				11
Loss and loss expenses paid			$	11		$	9		$	8		$	8		$	6		$	8		$	20		$	14			$	22			$	30
Incurred losses and loss expenses
Loss and loss expense incurred			$	21		$	24		$	20		$	17		$	19		$	19		$	45		$	38			$	55			$	75
Loss and loss expenses paid as a % of incurred			52.4		%	37.5		%	40.0		%	47.1		%	31.6		%	42.1		%	44.4		%	36.8		%		40.0		%		40.0		%
Statutory combined ratio
Loss ratio			36.1		%	44.9		%	34.4		%	27.9		%	46.6		%	40.6		%	40.4		%	43.7		%		37.6		%		36.8		%
Loss adjustment expense ratio			13.5			14.5			14.6			13.9			10.4			0.1			14.0			13.1				13.4				13.7
Net underwriting expense ratio			29.1			29.9			31.4			34.0			29.1			30.4			29.5			29.7				31.2				31.3
Statutory combined ratio			78.7		%	89.3		%	80.4		%	75.8		%	86.1		%	71.1		%	83.9		%	86.5		%		82.2		%		81.8		%
Contribution from catastrophe losses			0.5			0.9			3.0			(0.6		)	2.9			3.1			0.7			3.0				1.6				2.0
Statutory combined ratio excl. catastrophe losses			78.2		%	88.4		%	77.4		%	76.4		%	83.2		%	68.0		%	83.2		%	83.5		%		80.6		%		79.8		%
GAAP combined ratio
GAAP combined ratio			76.0		%	88.3		%	77.8		%	70.2		%	85.0		%	86.9		%	82.1		%	85.9		%		79.9		%		79.4		%
Contribution from catastrophe losses			0.5			0.9			3.0			(0.6		)	2.9			3.1			0.7			3.0				1.6				2.0
GAAP combined ratio excl. catastrophe losses			75.5		%	87.4		%	74.8		%	70.8		%	82.1		%	83.8		%	81.4		%	82.9		%		78.3		%		77.4		%
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 Second-Quarter 2015 Supplemental Financial Data



The Cincinnati Life Insurance Company
Statutory Statements of Income

	For the Three Months Ended June 30,											For the Six Months Ended June 30,
(Dollars in millions)	2015			2014			Change			% Change		2015			2014			Change			% Change
Net premiums written	$	64		$	65		$	(1	)	(2	)	$	125		$	123		$	2		2
Net investment income	38			37			1			3		76			74			2			3
Amortization of interest maintenance reserve	1			2			(1		)	(50	)	2			2			—			—
Commissions and expense allowances on reinsurance ceded	2			1			1			100		3			3			—			—
Income from fees associated with Separate Accounts	1			2			(1		)	(50	)	2			3			(1		)	(33	)
Total revenues	$	106		$	107		$	(1	)	(1	)	$	208		$	205		$	3		1

Death benefits and matured endowments	$	21		$	22		$	(1	)	(5	)	$	46		$	48		$	(2	)	(4	)
Annuity benefits	15			16			(1		)	(6	)	30			30			—			—
Disability benefits and benefits under accident and health contracts	1			1			—			—		1			1			—			—
Surrender benefits and group conversions	4			6			(2		)	(33	)	8			11			(3		)	(27	)
Interest and adjustments on deposit-type contract funds	3			3			—			—		5			5			—			—
Increase in aggregate reserves for life and accident and health contracts	44			47			(3		)	(6	)	85			88			(3		)	(3	)
Payments on supplementary contracts with life contingencies	—			—			—			nm		—			—			—			nm
Total benefit expenses	$	88		$	95		$	(7	)	(7	)	$	175		$	183		$	(8	)	(4	)

Commissions	$	10		$	10		$	—		—		$	18		$	19		$	(1	)	(5	)
General insurance expenses and taxes	11			10			1			10		21			20			1			5
Increase in loading on deferred and uncollected premiums	(2		)	(2		)	—			—		—			(3		)	3			100
Net transfers from Separate Accounts	—			(4		)	4			100		—			(4		)	4			100
Other deductions	—			—			—			nm		—			—			—			nm
Total underwriting expenses	$	19		$	14		$	5		36		$	39		$	32		$	7		22

Federal and foreign income tax benefit	(1		)	(1		)	—			—		(3		)	(3		)	—			—

Net loss from operations before realized capital gains	$	—		$	(1	)	$	1		100		$	(3	)	$	(7	)	$	4		57

Net realized gains net of capital gains tax	(1		)	—			(1		)	nm		(1		)	—			(1		)	nm

Net loss (statutory)	$	(1	)	$	(1	)	$	—		—		$	(4	)	$	(7	)	$	3		43
Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. 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 Second-Quarter 2015 Supplemental Financial Data

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