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

Attached files

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8-K - 8-K - CINCINNATI FINANCIAL CORP	a1q16release8-k.htm
EX-99.1 - EXHIBIT 99.1 - CINCINNATI FINANCIAL CORP	exhibit9911q16.htm

Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending March 31, 2016

6200 South Gilmore Road

Fairfield, Ohio 45014-5141

cinfin.com



Investor Contact:	Media Contact:	Shareholder Contact:
Dennis E. McDaniel	Betsy E. Ertel	Brandon McIntosh
513-870-2768	513-603-5323	513-870-2696



	A.M. Best	Fitch	Moody's	Standard & Poor's
Cincinnati Financial Corporation
Corporate Debt	a-	A-	A3	BBB+

The Cincinnati Insurance Companies
Insurer Financial Strength

Property Casualty Group
Standard Market Subsidiaries:	A+	—	A1	A+
The Cincinnati Insurance Company	A+	A+	A1	A+
The Cincinnati Indemnity Company	A+	A+	A1	A+
The Cincinnati Casualty Company	A+	A+	A1	A+
Surplus Lines Subsidiary:
The Cincinnati Specialty Underwriters Insurance Company	A+	—	—	—

The Cincinnati Life Insurance Company	A	A+	—	A+

Ratings are as of April 25, 2016, 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 First-Quarter 2016 Supplemental Financial Data



	Cincinnati Financial Corporation
	Supplemental Financial Data
	for the period ending March 31, 2016

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

Consolidated
	Quick Reference	4
	CFC and Subsidiaries Consolidation – Three Months Ended March 31, 2016	5
	CFC Insurance Subsidiaries – Selected Balance Sheet Data	6


Consolidated Property Casualty Insurance Operations
	Statutory Statements of Income	7
	Consolidated Cincinnati Insurance Companies – Losses Incurred Detail	8
	Consolidated Cincinnati Insurance Companies – Loss Ratio Detail	9
	Consolidated Cincinnati Insurance Companies – Loss Claim Count Detail	10
	Direct Written Premiums by Risk State by Line of Business	11
	Quarterly Property Casualty Data – Commercial Lines	12
	Quarterly Property Casualty Data – Personal Lines and Excess & Surplus Lines	13
	Loss and Loss Expense Analysis – Three Months Ended March 31, 2016	14

Reconciliation Data
	Quarterly Property Casualty Data – Consolidated	15
	Quarterly Property Casualty Data – Commercial Lines	16
	Quarterly Property Casualty Data – Personal Lines	17
	Quarterly Property Casualty Data – Excess & Surplus Lines	18

Life Insurance Operations
	Statutory Statements of Income	19

CINF First-Quarter 2016 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 First-Quarter 2016 Supplemental Financial Data



Cincinnati Financial Corporation
Quick Reference					—	First Quarter 2016
(all data shown is for the three months ended or as of March 31, 2016)

(Dollars in millions except per share data)	3/31/2016		Year over year change %				3/31/2016			Year over year change %
Revenues:						Benefits and expenses:

Commercial lines net written premiums	$	827	6			Commercial lines loss and loss expenses	$	469		(1	)
Personal lines net written premiums	256		6			Personal lines loss and loss expenses	173			(9	)
Excess & surplus lines net written premiums	45		7			Excess & surplus lines loss and loss expenses	13			(46	)
Cincinnati Re net written premiums	19		nm			Cincinnati Re loss and loss expenses	6			nm
Property casualty net written premiums	$	1,147	8			Life and health contract holders' benefits incurred	63			5
Life and accident and health net written premiums	$	58	7			Underwriting, acquisition and insurance expenses	360			4
Annuity net written premiums	12		49			Interest expenses	13			0
Life, annuity and accident and health net written premiums	$	70	12			Other operating expenses	2			(50	)
Commercial lines net earned premiums	$	760	4			Total benefits & expenses	$	1,099		(1	)
Personal lines net earned premiums	283		6			Income before income taxes	265			52
Excess & surplus lines net earned premiums	43		8			Total income tax	77			67
Cincinnati Re net earned premiums	10		nm
Property casualty net earned premiums	$	1,096	5			Balance Sheet:
Life and accident and health net earned premiums	58		9
Investment income	145		4			Fixed maturity investments	$	9,884
Realized investment gains and losses, net	61		30			Equity securities	4,941
Fee revenue	3		0			Other investments	64
Other revenue	1		(50	)		Total invested assets	$	14,889
Total revenues	1,364		6
						Loss and loss expense reserves	$	4,804
						Life policy and investment contract reserves	2,601
						Long-term debt and capital lease obligations	825
Income:						Shareholders' equity	6,735

Operating income	$	148	53			Key ratios:
Realized investment gains and losses, net	40		29
Net income	188		47			Commercial lines GAAP combined ratio	93.6		%
						Personal lines GAAP combined ratio	90.1
						Excess & surplus lines GAAP combined ratio	61.1
						Property casualty GAAP combined ratio	91.4
Per share (diluted):
						Commercial lines STAT combined ratio	91.4		%
Operating income	$	0.89	51			Personal lines STAT combined ratio	92.0
Realized investment gains and losses, net	0.24		33			Excess & surplus lines STAT combined ratio	62.0
Net income	1.13		47			Property casualty STAT combined ratio	90.2
Book value	40.96		2
Weighted average shares outstanding	166.0		0			Value creation ratio	5.7		%

CINF First-Quarter 2016 Supplemental Financial Data



Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Three Months Ended March 31, 2016

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I		ELIM			Total
Revenues
Premiums earned:
Property casualty	$	—		$	1,134		$	—		$	—	$	—		$	1,134
Life	—			—			69			—		—			69
Premiums ceded	—			(38		)	(13		)	—		—			(51		)
Total earned premium	—			1,096			58			—		—			1,154
Investment income, net of expenses	12			94			39			—		—			145
Realized investment gains, net	17			44			—			—		—			61
Fee revenues	—			2			1			—		—			3
Other revenues	4			—			—			1		(4		)	1
Total revenues	$	33		$	1,236		$	98		$	1	$	(4	)	$	1,364

Benefits & expenses
Losses & contract holders' benefits	$	—		$	658		$	76		$	—	$	—		$	734
Reinsurance recoveries	—			3			(13		)	—		—			(10		)
Underwriting, acquisition and insurance expenses	—			341			19			—		—			360
Interest expense	13			—			—			—		—			13
Other operating expenses	6			—			—			—		(4		)	2
Total expenses	$	19		$	1,002		$	82		$	—	$	(4	)	$	1,099

Income before income taxes	$	14		$	234		$	16		$	1	$	—		$	265

Provision (benefit) for income taxes
Current operating income	$	(3	)	$	51		$	(4	)	$	—	$	—		$	44
Capital gains/losses	6			15			—			—		—			21
Deferred	(1		)	3			10			—		—			12
Total provision for income taxes	$	2		$	69		$	6		$	—	$	—		$	77

Operating income	$	1		$	136		$	10		$	1	$	—		$	148

Net income - current year	$	12		$	165		$	10		$	1	$	—		$	188

Net income - prior year	$	—		$	115		$	10		$	1	$	2		$	128
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.

CINF First-Quarter 2016 Supplemental Financial Data



Cincinnati Financial Corporation Insurance Subsidiaries
Selected Balance Sheet Data

(Dollars in millions)
	12/31/2016	9/30/2016	6/30/2016	3/31/2016		12/31/2015		9/30/2015		6/30/2015		3/31/2015
Cincinnati Insurance Consolidated
Fixed maturities (fair value)				$	6,607	$	6,435	$	6,472	$	6,435	$	6,325
Equities (fair value)				3,222		3,101		2,961		3,108		3,108
Fixed maturities - pretax net unrealized gain				301		234		283		280		387
Equities - pretax net unrealized gain				1,302		1,203		1,063		1,297		1,397
Loss and loss expense reserves - STAT				4,480		4,382		4,366		4,357		4,302
Equity - GAAP				5,655		5,444		5,397		5,485		5,593
Surplus - STAT				4,534		4,413		4,324		4,419		4,436

The Cincinnati Life Insurance Company
Fixed maturities (fair value)				$	3,215	$	3,154	$	3,221	$	3,176	$	3,199
Equities (fair value)				9		9		9		8		9
Fixed maturities - pretax net unrealized gain				124		76		133		151		220
Equities - pretax net unrealized gain				4		4		4		3		4
Equity - GAAP				911		872		897		896		927
Surplus - STAT				207		208		215		217		219

CINF First-Quarter 2016 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Statutory Statements of Income

	For the Three Months Ended March 31,
(Dollars in millions)	2016		2015		Change			% Change
Underwriting income
Net premiums written	$	1,147	$	1,066	$	81		8
Unearned premiums increase	51		25		26			104
Earned premiums	$	1,096	$	1,041	$	55		5

Losses incurred	$	551	$	567	$	(16	)	(3	)
Defense and cost containment expenses incurred	48		60		(12		)	(20	)
Adjusting and other expenses incurred	62		62		—			—
Other underwriting expenses incurred	339		316		23			7
Workers compensation dividend incurred	4		3		1			33

Total underwriting deductions	$	1,004	$	1,008	$	(4	)	—
Net underwriting profit	$	92	$	33	$	59		179

Investment income
Gross investment income earned	$	98	$	93	$	5		5
Net investment income earned	97		91		6			7
Net realized capital gains	31		26		5			19
Net investment gains (net of tax)	$	128	$	117	$	11		9

Other income	$	1	$	1	$	—		—

Net income before federal income taxes	$	221	$	151	$	70		46
Federal and foreign income taxes incurred	$	54	$	31	$	23		74
Net income (statutory)	$	167	$	120	$	47		39
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 First-Quarter 2016 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
	12/31/16	9/30/16	6/30/16	3/31/16			12/31/15			9/30/15			6/30/15			3/31/15		6/30/16	6/30/15		9/30/16	9/30/15		12/31/16	12/31/15
Consolidated
Current accident year losses greater than $5,000,000				$	—		$	4		$	8		$	5		$	12		$	17		$	25		$	29
Current accident year losses $1,000,000-$5,000,000				42			57			43			24			37			61			104			161
Large loss prior accident year reserve development				—			(3		)	19			(4		)	15			11			30			27
Total large losses incurred				$	42		$	58		$	70		$	25		$	64		$	89		$	159		$	217
Losses incurred but not reported				73			20			(31		)	38			43			81			50			70
Other losses excluding catastrophe losses				402			406			441			417			418			835			1,276			1,682
Catastrophe losses				33			12			24			78			42			120			144			156
Total losses incurred				$	550		$	496		$	504		$	558		$	567		$	1,125		$	1,629		$	2,125
Commercial Lines
Current accident year losses greater than $5,000,000				$	—		$	4		$	8		$	5		$	12		$	17		$	25		$	29
Current accident year losses $1,000,000-$5,000,000				36			48			26			14			24			38			64			112
Large loss prior accident year reserve development				(1		)	(3		)	17			(4		)	15			11			28			25
Total large losses incurred				$	35		$	49		$	51		$	15		$	51		$	66		$	117		$	166
Losses incurred but not reported				64			20			(17		)	17			31			48			31			51
Other losses excluding catastrophe losses				255			253			277			274			272			546			823			1,076
Catastrophe losses				25			7			9			43			29			72			81			88
Total losses incurred				$	379		$	329		$	320		$	349		$	383		$	732		$	1,052		$	1,381
Personal Lines
Current accident year losses greater than $5,000,000				$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Current accident year losses $1,000,000-$5,000,000				6			8			15			10			12			22			37			45
Large loss prior accident year reserve development				1			—			—			—			—			—			—			—
Total large losses incurred				$	7		$	8		$	15		$	10		$	12		$	22		$	37		$	45
Losses incurred but not reported				11			9			(12		)	14			7			21			9			18
Other losses excluding catastrophe losses				133			141			155			136			134			270			425			566
Catastrophe losses				8			4			15			34			13			47			62			66
Total losses incurred				$	159		$	162		$	173		$	194		$	166		$	360		$	533		$	695
Excess & Surplus Lines
Current accident year losses greater than $5,000,000				$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Current accident year losses $1,000,000-$5,000,000				—			1			2			—			1			1			3			4
Large loss prior accident year reserve development				—			1			2			—			—			—			2			3
Total large losses incurred				$	—		$	2		$	4		$	—		$	1		$	1		$	5		$	7
Losses incurred but not reported				(2		)	(8		)	(2		)	7			5			12			10			2
Other losses excluding catastrophe losses				9			7			9			7			12			19			28			35
Catastrophe losses				—			—			—			1			—			1			1			1
Total losses incurred				$	7		$	1		$	11		$	15		$	18		$	33		$	44		$	45

*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 First-Quarter 2016 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Loss Ratio Detail
	Three months ended													Six months ended			Nine months ended			Twelve months ended
	12/31/16	9/30/16	6/30/16	3/31/16		12/31/15		9/30/15		6/30/15		3/31/15		6/30/16	6/30/15		9/30/16	9/30/15		12/31/16	12/31/15
Consolidated
Current accident year losses greater than $5,000,000				—	%	0.5	%	0.7	%	0.5	%	1.0	%		0.8	%		0.8	%		0.7	%
Current accident year losses $1,000,000-$5,000,000				3.8		5.2		4.1		2.1		3.6			2.9			3.3			3.8
Large loss prior accident year reserve development				—		(0.2	)	1.7		(0.3	)	1.4			0.5			0.9			0.6
Total large loss ratio				3.8	%	5.5	%	6.5	%	2.3	%	6.0	%		4.2	%		5.0	%		5.1	%
Losses incurred but not reported				6.6		1.9		(2.9	)	3.6		4.2			3.9			1.6			1.6
Other losses excluding catastrophe losses				36.8		36.9		40.9		39.6		40.1			39.8			40.2			39.5
Catastrophe losses				3.0		1.0		2.3		7.3		4.1			5.7			4.5			3.6
Total loss ratio				50.2	%	45.3	%	46.8	%	52.8	%	54.4	%		53.6	%		51.3	%		49.8	%
Commercial Lines
Current accident year losses greater than $5,000,000				—	%	0.7	%	1.0	%	0.7	%	1.6	%		1.2	%		1.1	%		1.0	%
Current accident year losses $1,000,000-$5,000,000				4.8		6.2		3.7		1.7		3.3			2.6			2.9			3.7
Large loss prior accident year reserve development				(0.2	)	(0.4	)	2.3		(0.5	)	2.0			0.7			1.3			0.8
Total large loss ratio				4.6	%	6.5	%	7.0	%	1.9	%	6.9	%		4.5	%		5.3	%		5.5	%
Losses incurred but not reported				8.4		2.8		(2.4	)	2.2		4.3			3.2			1.3			1.7
Other losses excluding catastrophe losses				33.6		33.1		36.3		37.0		37.1			37.0			36.8			35.9
Catastrophe losses				3.3		0.9		1.3		5.8		4.0			4.9			3.7			3.0
Total loss ratio				49.9	%	43.3	%	42.2	%	46.9	%	52.3	%		49.6	%		47.1	%		46.1	%
Personal Lines
Current accident year losses greater than $5,000,000				—	%	—	%	—	%	—	%	—	%		—	%		—	%		—	%
Current accident year losses $1,000,000-$5,000,000				1.9		3.1		5.2		3.5		4.5			4.1			4.5			4.1
Large loss prior accident year reserve development				0.5		—		(0.2	)	0.1		—			—			—			—
Total large loss ratio				2.4	%	3.1	%	5.0	%	3.6	%	4.5	%		4.1	%		4.5	%		4.1	%
Losses incurred but not reported				3.8		3.1		(4.2	)	5.1		2.7			3.9			1.1			1.6
Other losses excluding catastrophe losses				47.1		49.9		56.3		50.0		49.9			49.8			52.0			51.6
Catastrophe losses				2.9		1.6		5.4		12.5		4.9			8.7			7.6			6.0
Total loss ratio				56.2	%	57.7	%	62.5	%	71.2	%	62.0	%		66.5	%		65.2	%		63.3	%
Excess & Surplus Lines
Current accident year losses greater than $5,000,000				—	%	—	%	—	%	—	%	—	%		—	%		—	%		—	%
Current accident year losses $1,000,000-$5,000,000				—		2.3		4.8		—		2.5			1.2			2.5			2.4
Large loss prior accident year reserve development				(0.4	)	1.5		5.0		—		—			—			1.7			1.7
Total large loss ratio				(0.4	)%	3.8	%	9.8	%	—	%	2.5	%		1.2	%		4.2	%		4.1	%
Losses incurred but not reported				(5.4	)	(19.5	)	(4.4	)	18.3		11.8			15.1			8.4			1.0
Other losses excluding catastrophe losses				20.8		16.8		21.2		17.5		29.9			23.5			22.7			21.2
Catastrophe losses				0.1		—		0.3		0.4		0.8			0.6			0.5			0.4
Total loss ratio				15.1	%	1.1	%	26.9	%	36.2	%	45.0	%		40.4	%		35.8	%		26.7	%
*Certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.

CINF First-Quarter 2016 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Loss Claim Count Detail
	Three months ended								Six months ended		Nine months ended		Twelve months ended
	12/31/16	9/30/16	6/30/16	3/31/16	12/31/15	9/30/15	6/30/15	3/31/15	6/30/16	6/30/15	9/30/16	9/30/15	12/31/16	12/31/15
Consolidated
Current accident year reported losses greater than $5,000,000				—	1	1	1	2		3		4		5
Current accident year reported losses $1,000,000 - $5,000,000				27	37	28	14	27		42		74		112
Prior accident year reported losses on large losses				10	8	6	9	15		27		35		46
Non-Catastrophe reported losses on large losses total				37	46	35	24	44		72		113		163
Commercial Lines
Current accident year reported losses greater than $5,000,000				—	1	1	1	2		3		4		5
Current accident year reported losses $1,000,000 - $5,000,000				23	29	17	9	18		26		46		77
Prior accident year reported losses on large losses				8	6	5	9	14		26		32		41
Non-Catastrophe reported losses on large losses total				31	36	23	19	34		55		82		123
Personal Lines
Current accident year reported losses greater than $5,000,000				—	—	—	—	—		—		—		—
Current accident year reported losses $1,000,000 - $5,000,000				4	7	9	5	8		15		25		31
Prior accident year reported losses on large losses				2	1	—	—	1		1		1		2
Non-Catastrophe reported losses on large losses total				6	8	9	5	9		16		26		33
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	2	—	1		1		3		4
Prior accident year reported losses on large losses				—	1	1	—	—		—		2		3
Non-Catastrophe reported losses on large losses total				—	2	3	—	1		1		5		7
*The sum of quarterly amounts may not equal the full year as each is computed independently.

CINF First-Quarter 2016 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Direct Written Premiums by Risk State by Line of Business for the Three Months Ended March 31, 2016
	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		2016		2015
																			Total		Total

OH	$	41.5	$	34.9	$	22.2	$	—	$	8.8	$	27.8	$	22.3	$	7.8	$	3.6	$	168.9	$	160.5	8.1		0.4		4.5		5.2
IL	18.5		15.0		9.0		14.6		3.7		6.9		6.4		1.8		3.9		79.8		77.1		5.4		(3.2	)	3.2		3.6
IN	17.5		14.9		9.5		10.5		3.1		7.4		7.6		1.8		2.7		75.0		71.9		5.5		—		12.2		4.4
PA	16.9		12.9		11.0		14.1		2.9		3.3		2.4		1.0		1.9		66.4		64.4		2.7		—		24.9		2.9
GA	11.0		9.8		7.6		3.7		3.1		10.7		9.9		2.6		3.7		62.1		57.7		6.0		7.6		33.2		7.9
NC	12.7		14.0		6.3		5.4		3.0		8.4		6.9		2.0		1.7		60.4		55.2		9.5		9.5		5.3		9.4
MI	11.3		9.8		6.2		5.9		2.7		12.6		7.5		1.2		1.6		58.8		54.5		5.5		15.1		(23.4	)	7.7
TN	11.9		11.3		5.6		2.9		2.7		4.6		5.3		1.3		1.3		46.9		42.9		9.4		7.7		17.7		9.2
KY	8.0		9.8		6.0		0.8		1.8		6.4		6.0		1.4		1.2		41.4		39.6		4.8		3.7		3.6		4.4
WI	10.1		7.7		4.4		9.1		1.8		1.8		2.0		0.8		1.0		38.7		36.4		6.2		3.9		23.7		6.3
VA	9.1		8.4		5.7		5.2		2.5		2.9		2.2		0.7		1.1		37.8		37.3		1.3		5.4		(15.1	)	1.4
AL	6.9		8.7		3.7		0.1		2.0		5.2		7.3		1.5		1.7		37.1		37.5		(3.3	)	3.1		(10.6	)	(1.3	)
MN	9.1		6.3		3.2		4.1		1.3		4.1		4.0		0.9		1.6		34.6		34.6		(0.9	)	(2.2	)	36.4		—
MO	7.6		8.4		4.4		4.1		1.3		1.6		2.2		0.5		2.0		32.1		30.5		3.6		13.9		11.4		5.3
TX	11.6		6.5		7.4		0.5		1.2		—		—		—		3.7		30.9		29.6		5.7		132.9		(7.6	)	3.9
MD	5.6		3.0		3.8		2.9		0.8		2.3		1.7		0.5		0.8		21.4		20.0		3.8		24.5		7.3		7.7
NY	7.8		4.4		2.6		1.3		0.7		1.6		1.3		0.6		—		20.3		17.2		10.0		121.4		(104.5	)	17.4
AR	3.4		5.6		2.2		0.6		1.3		2.5		2.6		0.7		0.7		19.6		17.8		10.9		8.6		47.9		11.2
IA	4.7		4.4		1.9		4.3		1.1		1.0		1.1		0.3		0.4		19.2		20.3		(5.6	)	0.2		(31.8	)	(5.7	)
FL	7.2		4.2		2.3		0.3		0.6		1.0		0.4		0.2		1.8		18.0		17.4		0.9		8.0		23.1		3.4
AZ	4.9		3.1		2.9		1.7		0.9		1.5		1.1		0.4		0.8		17.3		15.8		9.6		9.6		0.9		9.1
UT	5.5		2.6		3.5		0.1		1.0		2.2		1.1		0.3		0.9		17.2		15.7		8.4		6.9		22.6		8.8
KS	3.7		4.4		2.2		2.3		0.8		1.1		1.4		0.3		0.7		16.9		16.4		1.7		(2.5	)	55.5		2.6
SC	3.1		2.9		2.4		0.9		0.6		2.6		1.8		0.4		1.0		15.7		13.8		11.0		19.1		(3.8	)	12.4
MT	5.5		2.9		3.1		—		0.4		0.6		0.6		0.2		0.2		13.5		12.7		7.8		(3.4	)	(10.6	)	6.2
CO	4.7		2.7		3.1		0.1		0.5		—		0.1		—		1.7		12.9		10.7		16.6		103.9		42.3		19.8
NE	2.6		3.1		1.4		2.7		0.5		0.2		0.2		0.1		0.6		11.4		11.5		(0.7	)	(0.1	)	(5.1	)	(1.0	)
ID	3.7		1.9		2.1		0.1		0.6		0.8		0.5		0.1		0.4		10.2		10.0		2.8		2.9		8.8		3.0
OR	2.9		1.8		1.9		—		0.6		0.9		0.4		0.1		1.2		9.8		8.1		18.9		55.7		0.4		20.5
WV	2.5		2.4		1.9		0.4		0.4		—		0.1		—		0.7		8.4		9.0		(6.7	)	2.7		(2.8	)	(6.2	)
ND	3.0		1.7		1.4		—		0.3		0.2		0.2		0.1		0.1		7.0		7.1		(2.0	)	12.6		38.3		(1.0	)
NM	2.4		1.5		2.0		0.1		0.4		—		—		—		0.1		6.5		5.4		19.6		34.7		(3.4	)	18.9
WA	2.2		1.5		1.7		—		0.4		—		—		—		0.4		6.2		5.5		12.0		(100.0	)	(0.9	)	11.1
VT	1.1		1.4		0.6		1.6		0.6		0.3		0.3		0.1		0.2		6.2		6.3		(4.2	)	15.8		32.8		(0.9	)
DE	1.7		1.3		0.9		1.1		0.3		—		—		—		0.2		5.5		4.4		21.6		nm		44.6		22.4
NH	1.2		1.0		0.5		1.1		0.3		0.4		0.3		0.1		0.2		5.1		5.2		(0.4	)	5.1		(9.1	)	0.1
CT	1.1		1.0		0.4		0.4		0.2		0.6		0.6		0.2		0.2		4.7		3.5		13.0		312.0		3.4		43.2
SD	0.8		1.1		0.6		0.9		0.4		—		—		—		0.1		3.9		3.8		5.1		nm		0.5		4.9
WY	0.8		0.7		0.4		—		0.1		—		—		—		0.1		2.1		1.8		16.7		31.6		24.3		17.1
NJ	0.3		0.1		0.1		0.6		—		—		—		—		—		1.1		1.0		45.8		nm		289.8		56.7
All Other	1.1		0.5		0.6		1.7		—		0.2		0.3		—		0.6		5.0		4.6		5.9		(37.7	)	26.0		6.9
Total	$	287.2	$	239.6	$	158.7	$	106.2	$	55.7	$	123.7	$	108.1	$	30.0	$	46.8	$	1,156.0	$	1,094.7	5.4		5.9		6.9		5.6
Other Direct	—		0.6		0.9		1.3		—		2.4		—		—		—		5.2		5.8		(15.5	)	(4.7	)	nm		(10.8	)
Total Direct	$	287.2	$	240.2	$	159.6	$	107.5	$	55.7	$	126.1	$	108.1	$	30.0	$	46.8	$	1,161.2	$	1,100.5	5.4		5.8		6.9		5.5
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 First-Quarter 2016 Supplemental Financial Data



Quarterly Property Casualty Data - Commercial Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/16	9/30/16	6/30/16	3/31/16			12/31/15			9/30/15			6/30/15			3/31/15			6/30/16	6/30/15			9/30/16	9/30/15			12/31/16	12/31/15
Commercial casualty:
Written premiums				$	285		$	238		$	247		$	274		$	266			$	540			$	787			$	1,025
Earned premiums				257			257			257			252			244				496				753				1,010
Current accident year before catastrophe losses				60.2		%	61.5		%	53.6		%	59.6		%	59.2		%		59.4		%		57.4		%		58.5		%
Current accident year catastrophe losses				—			—			—			—			—				—				—				—
Prior accident years before catastrophe losses				(1.2		)	(10.6		)	(6.2		)	(9.1		)	1.1				(4.1		)		(4.8		)		(6.3		)
Prior accident years catastrophe losses				—			—			—			—			—				—				—
Total loss and loss expense ratio				59.0		%	50.9		%	47.4		%	50.5		%	60.3		%		55.3		%		52.6		%		52.2		%
Commercial property:
Written premiums				$	225		$	203		$	218		$	218		$	206			$	424			$	642			$	845
Earned premiums				214			211			205			201			196				399				604				815
Current accident year before catastrophe losses				51.4		%	44.1		%	47.0		%	42.1		%	53.6		%		47.8		%		47.5		%		46.6		%
Current accident year catastrophe losses				13.6			5.0			5.2			19.6			16.7				18.2				13.8				11.5
Prior accident years before catastrophe losses				(1.7		)	3.0			(0.2		)	(2.0		)	(1.9		)		(2.0		)		(1.4		)		(0.3		)
Prior accident years catastrophe losses				(2.2		)	(1.3		)	0.3			0.1			(3.8		)		(1.8		)		(1.1		)		(1.1		)
Total loss and loss expense ratio				61.1		%	50.8		%	52.3		%	59.8		%	64.6		%		62.2		%		58.8		%		56.7		%
Commercial auto:
Written premiums				$	158		$	140		$	137		$	149		$	149			$	298			$	435			$	575
Earned premiums				144			145			141			139			136				275				416				561
Current accident year before catastrophe losses				77.5		%	71.2		%	71.4		%	75.8		%	72.3		%		74.1		%		73.1		%		72.6		%
Current accident year catastrophe losses				0.6			0.1			—			1.3			—				0.7				0.5				0.4
Prior accident years before catastrophe losses				5.7			3.0			3.2			8.3			8.6				8.4				6.6				5.7
Prior accident years catastrophe losses				(0.1		)	—			(0.1		)	(0.2		)	(0.1		)		(0.2		)		(0.1		)		(0.1		)
Total loss and loss expense ratio				83.7		%	74.3		%	74.5		%	85.2		%	80.8		%		83.0		%		80.1		%		78.6		%
Workers' compensation:
Written premiums				$	105		$	81		$	83		$	89		$	104			$	193			$	276			$	357
Earned premiums				89			91			93			90			93				183				276				367
Current accident year before catastrophe losses				73.3		%	73.2		%	71.1		%	77.6		%	71.5		%		74.5		%		73.4		%		73.3		%
Current accident year catastrophe losses				—			—			—			—			—				—				—				—
Prior accident years before catastrophe losses				(14.5		)	(14.0		)	(26.4		)	(44.8		)	(16.1		)		(30.3		)		(29.0		)		(25.3		)
Prior accident years catastrophe losses				—			—			—			—			—				—				—				—
Total loss and loss expense ratio				58.8		%	59.2		%	44.7		%	32.8		%	55.4		%		44.2		%		44.4		%		48.0		%
Other commercial:
Written premiums				$	54		$	50		$	60		$	55		$	58			$	113			$	173			$	223
Earned premiums				56			57			61			61			64				125				186				243
Current accident year before catastrophe losses				46.3		%	37.3		%	45.9		%	42.7		%	54.4		%		48.6		%		47.7		%		45.3		%
Current accident year catastrophe losses				0.6			0.4			1.2			3.4			9.7				6.6				4.9				3.8
Prior accident years before catastrophe losses				(22.9		)	(2.9		)	(9.8		)	(13.6		)	(0.2		)		(6.7		)		(7.7		)		(6.6		)
Prior accident years catastrophe losses				0.2			(0.7		)	(2.1		)	1.2			(2.6		)		(0.7		)		(1.2		)		(1.1		)
Total loss and loss expense ratio				24.2		%	34.1		%	35.2		%	33.7		%	61.3		%		47.8		%		43.7		%		41.4		%
*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.

CINF First-Quarter 2016 Supplemental Financial Data



Quarterly Property Casualty Data - Personal Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/16	9/30/16	6/30/16	3/31/16			12/31/15			9/30/15			6/30/15			3/31/15			6/30/16	6/30/15			9/30/16	9/30/15			12/31/16	12/31/15
Personal auto:
Written premiums				$	123		$	124		$	144		$	142		$	114			$	256			$	400			$	524
Earned premiums				131			130			128			125			123				248				376				506
Current accident year before catastrophe losses				79.1		%	76.6		%	74.5		%	79.7		%	81.6		%		80.8		%		78.6		%		78.1		%
Current accident year catastrophe losses				1.0			0.7			0.6			2.3			0.2				1.2				1.0				0.9
Prior accident years before catastrophe losses				(6.3		)	2.3			1.2			5.8			3.0				4.4				3.3				3.0
Prior accident years catastrophe losses				(0.3		)	(0.1		)	(0.1		)	(0.1		)	(0.2		)		(0.3		)		(0.2		)		(0.1		)
Total loss and loss expense ratio				73.5		%	79.5		%	76.2		%	87.7		%	84.6		%		86.1		%		82.7		%		81.9		%
Homeowner:
Written premiums				$	103		$	112		$	132		$	132		$	98			$	230			$	362			$	474
Earned premiums				119			118			117			114			114				228				345				463
Current accident year before catastrophe losses				51.5		%	50.2		%	52.8		%	52.9		%	55.5		%		54.1		%		53.7		%		52.8		%
Current accident year catastrophe losses				6.4			3.9			12.6			25.6			12.3				19.0				16.8				13.5
Prior accident years before catastrophe losses				(5.2		)	—			(1.0		)	(2.4		)	(5.1		)		(3.7		)		(2.8		)		(2.1		)
Prior accident years catastrophe losses				(1.6		)	(0.5		)	(0.1		)	(0.3		)	(1.2		)		(0.7		)		(0.5		)		(0.5		)
Total loss and loss expense ratio				51.1		%	53.6		%	64.3		%	75.8		%	61.5		%		68.7		%		67.2		%		63.7		%
Other personal:
Written premiums				$	30		$	30		$	36		$	35		$	29			$	64			$	100			$	130
Earned premiums				33			32			32			33			31				64				96				128
Current accident year before catastrophe losses				44.2		%	49.9		%	70.1		%	58.2		%	49.6		%		53.9		%		59.4		%		57.0		%
Current accident year catastrophe losses				5.8			0.3			1.2			8.4			2.8				5.6				4.1				3.2
Prior accident years before catastrophe losses				(4.6		)	4.1			7.6			(4.9		)	1.1				(1.9		)		1.3				2.0
Prior accident years catastrophe losses				0.3			(0.1		)	(0.1		)	—			(0.8		)		(0.4		)		(0.3		)		(0.3		)
Total loss and loss expense ratio				45.7		%	54.2		%	78.8		%	61.7		%	52.7		%		57.2		%		64.5		%		61.9		%

Quarterly Property Casualty Data - Excess & Surplus Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/16	9/30/16	6/30/16	3/31/16			12/31/15			9/30/15			6/30/15			3/31/15			6/30/16	6/30/15			9/30/16	9/30/15			12/31/16	12/31/15
Excess & Surplus:
Written premiums				$	45		$	44		$	43		$	46		$	42			$	88			$	131			$	175
Earned premiums				43			44			42			42			40				82				124				168
Current accident year before catastrophe losses				63.1		%	51.3		%	56.9		%	69.3		%	72.1		%		70.7		%		65.9		%		62.1		%
Current accident year catastrophe losses				0.3			0.2			0.3			0.6			1.2				0.9				0.7				0.5
Prior accident years before catastrophe losses				(31.5		)	(32.5		)	(15.4		)	(20.2		)	(13.6		)		(17.0		)		(16.4		)		(20.6		)
Prior accident years catastrophe losses				(0.2		)	(0.1		)	0.1			(0.1		)	(0.3		)		(0.2		)		(0.1		)		(0.1		)
Total loss and loss expense ratio				31.7		%	18.9		%	41.9		%	49.6		%	59.4		%		54.4		%		50.1		%		41.9		%
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.

CINF First-Quarter 2016 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 March 31, 2016
Commercial casualty	$	60	$	39	$	99	$	19		$	32		$	—		$	51		$	79		$	32		$	39	$	150
Commercial property	98		9		107		(6		)	19			10			23			92			19			19		130
Commercial auto	83		15		98		7			12			4			23			90			12			19		121
Workers' compensation	44		9		53		(10		)	8			2			—			34			8			11		53
Other commercial	19		5		24		(13		)	—			(2		)	(15		)	6			—			3		9
Total commercial lines	304		77		381		(3		)	71			14			82			301			71			91		463

Personal auto	87		16		103		(3		)	8			(10		)	(5		)	84			8			6		98
Homeowners	51		7		58		—			3			—			3			51			3			7		61
Other personal	14		1		15		(1		)	1			(1		)	(1		)	13			1			—		14
Total personal lines	152		24		176		(4		)	12			(11		)	(3		)	148			12			13		173

Excess & surplus lines	6		5		11		3			(2		)	2			3			9			(2		)	7		14
Cincinnati Re	—		—		—		1			7			—			8			1			7			—		8
Total property casualty	$	462	$	106	$	568	$	(3	)	$	88		$	5		$	90		$	459		$	88		$	111	$	658

Ceded loss and loss expense incurred for the three months ended March 31, 2016
Commercial casualty	$	—	$	—	$	—	$	—		$	(3	)	$	1		$	(2	)	$	—		$	(3	)	$	1	$	(2	)
Commercial property	—		—		—		—			—			—			—			—			—			—		—
Commercial auto	—		—		—		—			—			—			—			—			—			—		—
Workers' compensation	3		1		4		(1		)	(2		)	—			(3		)	2			(2		)	1		1
Other commercial	1		—		1		(6		)	—			—			(6		)	(5		)	—			—		(5		)
Total commercial lines	4		1		5		(7		)	(5		)	1			(11		)	(3		)	(5		)	2		(6		)

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

Excess & surplus lines	—		—		—		—			1			—			1			—			1			—		1
Cincinnati Re	—		—		—		—			2			—			2			—			2			—		2
Total property casualty	$	5	$	1	$	6	$	(7	)	$	(3	)	$	1		$	(9	)	$	(2	)	$	(3	)	$	2	$	(3	)

Net loss and loss expense incurred for the three months ended March 31, 2016
Commercial casualty	$	60	$	39	$	99	$	19		$	35		$	(1	)	$	53		$	79		$	35		$	38	$	152
Commercial property	98		9		107		(6		)	19			10			23			92			19			19		130
Commercial auto	83		15		98		7			12			4			23			90			12			19		121
Workers' compensation	41		8		49		(9		)	10			2			3			32			10			10		52
Other commercial	18		5		23		(7		)	—			(2		)	(9		)	11			—			3		14
Total commercial lines	300		76		376		4			76			13			93			304			76			89		469

Personal auto	86		16		102		(3		)	8			(10		)	(5		)	83			8			6		97
Homeowners	51		7		58		—			3			—			3			51			3			7		61
Other personal	14		1		15		(1		)	2			(1		)	—			13			2			—		15
Total personal lines	151		24		175		(4		)	13			(11		)	(2		)	147			13			13		173

Excess & surplus lines	6		5		11		3			(3		)	2			2			9			(3		)	7		13
Cincinnati Re	—		—		—		1			5			—			6			1			5			—		6
Total property casualty	$	457	$	105	$	562	$	4		$	91		$	4		$	99		$	461		$	91		$	109	$	661

CINF First-Quarter 2016 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
	12/31/16	9/30/16	6/30/16	3/31/16			12/31/15			9/30/15			6/30/15			3/31/15			6/30/16	6/30/15			9/30/16	9/30/15			12/31/16	12/31/15
Premiums
Agency renewal written premiums				$	1,028		$	925		$	999		$	1,018		$	983			$	2,001			$	3,000			$	3,925
Agency new business written premiums				125			140			138			138			116				254				392				532
Cincinnati Re net written premiums				19			33			—			—			—				—				—				33
Other written premiums				(25		)	(43		)	(39		)	(14		)	(33		)		(47		)		(86		)		(129		)
Net written premiums – statutory*				$	1,147		$	1,055		$	1,098		$	1,142		$	1,066			$	2,208			$	3,306			$	4,361
Unearned premium change				(51		)	40			(22		)	(83		)	(25		)		(108		)		(130		)		(90		)
Earned premiums				$	1,096		$	1,095		$	1,076		$	1,059		$	1,041			$	2,100			$	3,176			$	4,271
Year over year change %
Agency renewal written premiums				5		%	2		%	4		%	5		%	3		%		4		%		4		%		3		%
Agency new business written premiums				8			15			10			4			(6		)		(1		)		3				6
Cincinnati Re net written premiums				—			—			—			—			—				—				—				—
Other written premiums				24			(5		)	15			44			21				30				24				16
Net written premiums – statutory*				8			7			6			6			3				4				5				5
Paid losses and loss expenses
Losses paid				$	457		$	498		$	511		$	501		$	448			$	949			$	1,460			$	1,958
Loss expenses paid				105			103			93			97			98				195				288				391
Loss and loss expenses paid				$	562		$	601		$	604		$	598		$	546			$	1,144			$	1,748			$	2,349
Incurred losses and loss expenses
Loss and loss expense incurred				$	661		$	616		$	613		$	654		$	689			$	1,343			$	1,956			$	2,572
Loss and loss expenses paid as a % of incurred				85.0		%	97.6		%	98.5		%	91.4		%	79.2		%		85.2		%		89.4		%		91.3		%
Statutory combined ratio
Loss ratio				50.2		%	45.3		%	46.8		%	52.7		%	54.4		%		53.6		%		51.3		%		49.8		%
Loss adjustment expense ratio				10.1			11.0			10.1			9.1			11.7				10.3				10.2				10.4
Net underwriting expense ratio				29.9			32.3			30.6			28.9			30.0				29.4				29.8				30.4
Statutory combined ratio				90.2		%	88.6		%	87.5		%	90.7		%	96.1		%		93.3		%		91.3		%		90.6		%
Contribution from catastrophe losses				3.1			1.2			2.5			7.5			4.1				5.8				4.7				3.7
Statutory combined ratio excl. catastrophe losses				87.1		%	87.4		%	85.0		%	83.2		%	92.0		%		87.5		%		86.6		%		86.9		%
GAAP combined ratio
GAAP combined ratio				91.4		%	87.0		%	87.8		%	92.4		%	97.5		%		94.9		%		92.5		%		91.1		%
Contribution from catastrophe losses				3.1			1.2			2.5			7.5			4.1				5.8				4.7				3.7
GAAP combined ratio excl. catastrophe losses				88.3		%	85.8		%	85.3		%	84.9		%	93.4		%		89.1		%		87.8		%		87.4		%
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 First-Quarter 2016 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
	12/31/16	9/30/16	6/30/16	3/31/16			12/31/15			9/30/15			6/30/15			3/31/15			6/30/16	6/30/15			9/30/16	9/30/15			12/31/16	12/31/15
Premiums
Agency renewal written premiums				$	758		$	649		$	678		$	699		$	730			$	1,429			$	2,107			$	2,756
Agency new business written premiums				87			97			96			93			79				172				268				365
Other written premiums				(18		)	(34		)	(31		)	(5		)	(26		)		(31		)		(62		)		(96		)
Net written premiums – statutory*				$	827		$	712		$	743		$	787		$	783			$	1,570			$	2,313			$	3,025
Unearned premium change				(67		)	49			14			(42		)	(50		)		(92		)		(78		)		(29		)
Earned premiums				$	760		$	761		$	757		$	745		$	733			$	1,478			$	2,235			$	2,996
Year over year change %
Agency renewal written premiums				4		%	1		%	4		%	4		%	2		%		3		%		4		%		3		%
Agency new business written premiums				10			13			8			(2		)	(12		)		(7		)		(2		)		1
Other written premiums				31			(6		)	14			69			19				35				26				17
Net written premiums – statutory*				6			2			6			5			2				3				4				4
Paid losses and loss expenses
Losses paid				$	300		$	331		$	324		$	329		$	303			$	632			$	956			$	1,287
Loss expenses paid				76			76			68			71			73				144				212				288
Loss and loss expenses paid				$	376		$	407		$	392		$	400		$	376			$	776			$	1,168			$	1,575
Incurred losses and loss expenses
Loss and loss expense incurred				$	469		$	419		$	398		$	417		$	474			$	891			$	1,289			$	1,708
Loss and loss expenses paid as a % of incurred				80.2		%	97.1		%	98.5		%	95.9		%	79.3		%		87.1		%		90.6		%		92.2		%
Statutory combined ratio
Loss ratio				49.9		%	43.3		%	42.2		%	46.9		%	52.2		%		49.6		%		47.1		%		46.1		%
Loss adjustment expense ratio				11.8			11.8			10.2			9.1			12.5				10.7				10.5				10.9
Net underwriting expense ratio				29.7			33.5			32.2			29.9			29.9				29.9				30.6				31.3
Statutory combined ratio				91.4		%	88.6		%	84.6		%	85.9		%	94.6		%		90.2		%		88.2		%		88.3		%
Contribution from catastrophe losses				3.4			1.0			1.4			5.9			4.0				5.0				3.8				3.1
Statutory combined ratio excl. catastrophe losses				88.0		%	87.6		%	83.2		%	80.0		%	90.6		%		85.2		%		84.4		%		85.2		%
GAAP combined ratio
GAAP combined ratio				93.6		%	86.8		%	84.0		%	87.2		%	96.6		%		91.9		%		89.2		%		88.6		%
Contribution from catastrophe losses				3.4			1.0			1.4			5.9			4.0				5.0				3.8				3.1
GAAP combined ratio excl. catastrophe losses				90.2		%	85.8		%	82.6		%	81.3		%	92.6		%		86.9		%		85.4		%		85.5		%
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 First-Quarter 2016 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
	12/31/16	9/30/16	6/30/16	3/31/16			12/31/15			9/30/15			6/30/15			3/31/15			6/30/16	6/30/15			9/30/16	9/30/15			12/31/16	12/31/15
Premiums
Agency renewal written premiums				$	236		$	245		$	288		$	285		$	223			$	508			$	796			$	1,041
Agency new business written premiums				25			27			30			30			24				54				84				111
Other written premiums				(5		)	(6		)	(6		)	(6		)	(6		)		(12		)		(18		)		(24		)
Net written premiums – statutory*				$	256		$	266		$	312		$	309		$	241			$	550			$	862			$	1,128
Unearned premium change				27			14			(35		)	(37		)	27				(10		)		(45		)		(31		)
Earned premiums				$	283		$	280		$	277		$	272		$	268			$	540			$	817			$	1,097
Year over year change %
Agency renewal written premiums				6		%	5		%	4		%	3		%	2		%		3		%		3		%		4		%
Agency new business written premiums				4			13			30			25			14				20				24				21
Other written premiums				17			25			14			—			25				14				14				17
Net written premiums – statutory*				6			7			6			5			4				5				5				6
Paid losses and loss expenses
Losses paid				$	151		$	160		$	180		$	165		$	139			$	304			$	484			$	644
Loss expenses paid				24			23			20			22			22				44				64				87
Loss and loss expenses paid				$	175		$	183		$	200		$	187		$	161			$	348			$	548			$	731
Incurred losses and loss expenses
Loss and loss expense incurred				$	173		$	184		$	198		$	216		$	191			$	407			$	605			$	789
Loss and loss expenses paid as a % of incurred				101.2		%	99.5		%	101.0		%	86.6		%	84.3		%		85.5		%		90.6		%		92.6		%
Statutory combined ratio
Loss ratio				56.2		%	57.7		%	62.5		%	71.1		%	61.9		%		66.6		%		65.2		%		63.3		%
Loss adjustment expense ratio				4.7			8.0			9.0			8.5			9.1				8.8				8.8				8.6
Net underwriting expense ratio				31.1			29.4			27.0			26.2			30.4				28.0				27.7				28.1
Statutory combined ratio				92.0		%	95.1		%	98.5		%	105.8		%	101.4		%		103.4		%		101.7		%		100.0		%
Contribution from catastrophe losses				3.0			1.8			5.6			12.6			4.9				8.8				7.7				6.2
Statutory combined ratio excl. catastrophe losses				89.0		%	93.3		%	92.9		%	93.2		%	96.5		%		94.6		%		94.0		%		93.8		%
GAAP combined ratio
GAAP combined ratio				90.1		%	94.0		%	100.9		%	109.2		%	101.4		%		105.3		%		103.8		%		101.3		%
Contribution from catastrophe losses				3.0			1.8			5.6			12.6			4.9				8.8				7.7				6.2
GAAP combined ratio excl. catastrophe losses				87.1		%	92.2		%	95.3		%	96.6		%	96.5		%		96.5		%		96.1		%		95.1		%
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. 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 First-Quarter 2016 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
	12/31/16	9/30/16	6/30/16	3/31/16			12/31/15			9/30/15			6/30/15			3/31/15			6/30/16	6/30/15			9/30/16	9/30/15			12/31/16	12/31/15
Premiums
Agency renewal written premiums				$	34		$	31		$	33		$	34		$	30			$	64			$	97			$	128
Agency new business written premiums				13			16			12			15			13				28				40				56
Other written premiums				(2		)	(3		)	(2		)	(3		)	(1		)		(4		)		(6		)		(9		)
Net written premiums – statutory*				$	45		$	44		$	43		$	46		$	42			$	88			$	131			$	175
Unearned premium change				(2		)	—			(1		)	(4		)	(2		)		(6		)		(7		)		(7		)
Earned premiums				$	43		$	44		$	42		$	42		$	40			$	82			$	124			$	168
Year over year change %
Agency renewal written premiums				13		%	11		%	14		%	17		%	20		%		19		%		17		%		15		%
Agency new business written premiums				—			33			(8		)	7			8				8				3				10
Other written premiums				(100		)	(200		)	33			—			50				20				25				—
Net written premiums – statutory*				7			13			10			15			20				17				15				14
Paid losses and loss expenses
Losses paid				$	6		$	6		$	8		$	8		$	5			$	13			$	21			$	27
Loss expenses paid				5			5			4			3			4				7				11				16
Loss and loss expenses paid				$	11		$	11		$	12		$	11		$	9			$	20			$	32			$	43
Incurred losses and loss expenses
Loss and loss expense incurred				$	13		$	8		$	17		$	21		$	24			$	45			$	62			$	70
Loss and loss expenses paid as a % of incurred				84.6		%	137.5		%	70.6		%	52.4		%	37.5		%		44.4		%		51.6		%		61.4		%
Statutory combined ratio
Loss ratio				15.1		%	1.1		%	26.9		%	36.1		%	44.9		%		40.4		%		35.8		%		26.7		%
Loss adjustment expense ratio				16.6			17.8			15.0			13.5			14.5				14.0				14.3				15.2
Net underwriting expense ratio				30.3			31.8			29.4			29.1			29.9				29.5				29.5				30.0
Statutory combined ratio				62.0		%	50.7		%	71.3		%	78.7		%	89.3		%		83.9		%		79.6		%		71.9		%
Contribution from catastrophe losses				0.2			0.1			0.4			0.5			0.9				0.7				0.6				0.4
Statutory combined ratio excl. catastrophe losses				61.8		%	50.6		%	70.9		%	78.2		%	88.4		%		83.2		%		79.0		%		71.5		%
GAAP combined ratio
GAAP combined ratio				61.1		%	48.1		%	69.9		%	76.0		%	88.3		%		82.1		%		77.9		%		70.0		%
Contribution from catastrophe losses				0.2			0.1			0.4			0.5			0.9				0.7				0.6				0.4
GAAP combined ratio excl. catastrophe losses				60.9		%	48.0		%	69.5		%	75.5		%	87.4		%		81.4		%		77.3		%		69.6		%
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 First-Quarter 2016 Supplemental Financial Data



The Cincinnati Life Insurance Company
Statutory Statements of Income

	For the Three Months Ended March 31,
(Dollars in millions)	2016			2015			Change			% Change
Net premiums written	$	69		$	61		$	8		13
Net investment income	40			38			2			5
Amortization of interest maintenance reserve	1			1			—			—
Commissions and expense allowances on reinsurance ceded	1			1			—			—
Income from fees associated with Separate Accounts	1			1			—			—
Total revenues	$	112		$	102		$	10		10

Death benefits and matured endowments	$	29		$	25		$	4		16
Annuity benefits	18			15			3			20
Surrender benefits and group conversions	5			4			1			25
Interest and adjustments on deposit-type contract funds	3			3			—			—
Increase in aggregate reserves for life and accident and health contracts	41			40			1			3
Total benefit expenses	$	96		$	87		$	9		10

Commissions	$	9		$	9		$	—		—
General insurance expenses and taxes	11			10			1			10
Increase in loading on deferred and uncollected premiums	—			1			(1		)	100
Net transfers from Separate Accounts	(2		)	—			(2		)	nm
Total underwriting expenses	$	18		$	20		$	(2	)	(10	)

Federal and foreign income tax benefit	(2		)	(3		)	1			33

Net loss from operations before realized capital gains	$	—		$	(2	)	$	2		100

Realized gains and losses net of capital gains tax, net	2			—			2			nm

Net income (loss) (statutory)	$	2		$	(2	)	$	4		nm
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 First-Quarter 2016 Supplemental Financial Data

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