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

Attached files

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EX-99.1 - EXHIBIT 99.1 - CINCINNATI FINANCIAL CORP	exhibit991q416.htm
8-K - 8-K - CINCINNATI FINANCIAL CORP	a4q16release8-k.htm

Cincinnati Financial Corporation

Supplemental Financial Data

for the Period Ending December 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 February 7, 2017, 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 Fourth-Quarter 2016 Supplemental Financial Data



	Cincinnati Financial Corporation
	Supplemental Financial Data
	Fourth Quarter 2016

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

Consolidated
	Quick Reference	4
	CFC and Subsidiaries Consolidation – Twelve Months Ended December 31, 2016	5
	CFC and Subsidiaries Consolidation – Three Months Ended December 31, 2016	6
	5-Year Net Income Reconciliation	7
	CFC Insurance Subsidiaries – Selected Balance Sheet Data	8

Consolidated Property Casualty Insurance Operations
	Statutory Statements of Income	9
	Consolidated Cincinnati Insurance Companies – Losses Incurred Detail	10
	Consolidated Cincinnati Insurance Companies – Loss Ratio Detail	11
	Consolidated Cincinnati Insurance Companies – Loss Claim Count Detail	12
	Direct Written Premiums by Risk State by Line of Business	13
	Quarterly Property Casualty Data – Commercial Lines	14
	Quarterly Property Casualty Data – Personal Lines and Excess & Surplus Lines	15
	Loss and Loss Expense Analysis – Twelve Months Ended December 31, 2016	16
	Loss and Loss Expense Analysis – Three Months Ended December 31, 2016	17

Reconciliation Data
	Quarterly Property Casualty Data – Consolidated	18
	Quarterly Property Casualty Data – Commercial Lines	19
	Quarterly Property Casualty Data – Personal Lines	20
	Quarterly Property Casualty Data – Excess & Surplus Lines	21

Life Insurance Operations
	Statutory Statements of Income	22

CINF Fourth-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; supplement reporting segment disclosures with disclosures for a subsidiary company or for a combination of subsidiaries or reporting segments; 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.

•

Consolidated property casualty insurance results: To supplement reporting segment disclosures related to our property casualty insurance operations, we also evaluate results for those operations on a basis that includes results for our property casualty insurance and brokerage services subsidiaries. That is the total of our commercial lines, personal lines and our excess and surplus lines segment plus our reinsurance assumed operations.

•

Life insurance subsidiary results: To supplement life insurance reporting segment disclosures related to our life insurance operation, we also evaluate results for that operation on a basis that includes life insurance subsidiary investment income, or investment income plus net realized investment gains, that are also included in our investments reporting segment. We recognize that assets under management, capital appreciation and investment income are integral to evaluating the success of the life insurance segment because of the long duration of life products.

•

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 Fourth-Quarter 2016 Supplemental Financial Data



Cincinnati Financial Corporation
Quick Reference						—	Fourth Quarter 2016
(all data shown is for the three months ended or at December 31, 2016)

(Dollars in millions except per share data)	12/31/2016			Year over year change %				12/31/2016			Year over year change %
Revenues:							Benefits and expenses:

Commercial lines net written premiums	$	721		1			Commercial lines loss and loss expenses	$	503		20
Personal lines net written premiums	283			6			Personal lines loss and loss expenses	226			23
Excess & surplus lines net written premiums	45			2			Excess & surplus lines loss and loss expenses	13			63
Cincinnati Re net written premiums	15			(55	)		Cincinnati Re loss and loss expenses	9			68
Property casualty net written premiums	$	1,064		1			Life and health contract holders' benefits incurred	58			(5	)
Life and accident and health net written premiums	$	61		5			Underwriting, acquisition and insurance expenses	359			1
Annuity net written premiums	10			17			Interest expenses	14			8
Life, annuity and accident and health net written premiums	$	71		8			Other operating expenses	2			(33	)
Commercial lines net earned premiums	$	779		2			Total benefits & expenses	$	1,184		13
Personal lines net earned premiums	297			6			Income before income taxes	128			(41	)
Excess & surplus lines net earned premiums	47			7			Total income tax	28			(53	)
Cincinnati Re net earned premiums	16			69
Property casualty net earned premiums	$	1,139		4			Balance Sheet:
Life and accident and health net earned premiums	53			0
Investment income	153			2			Fixed maturity investments	$	10,085
Realized investment gains and losses, net	(37		)	8			Equity securities	5,334
Fee revenue	4			33			Other investments	81
Other revenue	—			(100	)		Total invested assets	$	15,500
Total revenues	1,312			4
							Loss and loss expense reserves	$	5,085
							Life policy and investment contract reserves	2,671
Income:							Long-term debt and capital lease obligations	826
							Shareholders' equity	7,060
Net income	$	100		(36	)
Realized investment gains, net	(37		)	8			Key ratios:
Income tax on unrealized investment gains	12			(14	)
Realized investment gains, after tax	(25		)	4			Commercial lines GAAP combined ratio	95.7		%
Operating income	125			(31	)		Personal lines GAAP combined ratio	104.4
							Excess & surplus lines GAAP combined ratio	58.7
							Cincinnati Re GAAP combined ratio	84.7
Per share (diluted):							Property casualty GAAP combined ratio	96.2

Net income	$	0.60		(36	)		Commercial lines STAT combined ratio	97.6		%
Realized investment gains, net	(0.23		)	4			Personal lines STAT combined ratio	105.3
Income tax on unrealized investment gains	0.08			0			Excess & surplus lines STAT combined ratio	60.2
Realized investment gains, after tax	(0.15		)	6			Cincinnati Re STAT combined ratio	90.6
Operating income	0.75			(32	)		Property casualty STAT combined ratio	97.9
Book value	42.95			10
Weighted average shares outstanding	166.5			0			Value creation ratio	0.4		%

CINF Fourth-Quarter 2016 Supplemental Financial Data



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

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I		ELIM			Total
Revenues
Premiums earned:
Property casualty	$	—		$	4,644		$	—		$	—	$	—		$	4,644
Life	—			—			290			—		—			290
Premiums ceded	—			(162		)	(62		)	—		—			(224		)
Total earned premium	—			4,482			228			—		—			4,710
Investment income, net of expenses	56			384			155			—		—			595
Realized investment gains, net	27			89			8			—		—			124
Fee revenues	—			10			5			—		—			15
Other revenues	15			1			—			4		(15		)	5
Total revenues	$	98		$	4,966		$	396		$	4	$	(15	)	$	5,449

Benefits & expenses
Losses & contract holders' benefits	$	—		$	2,918		$	303		$	—	$	(1	)	$	3,220
Reinsurance recoveries	—			(57		)	(57		)	—		1			(113		)
Underwriting, acquisition and insurance expenses	—			1,389			76			—		—			1,465
Interest expense	52			—			—			1		—			53
Other operating expenses	27			—			—			1		(16		)	12
Total expenses	$	79		$	4,250		$	322		$	2	$	(16	)	$	4,637

Income before income taxes	$	19		$	716		$	74		$	2	$	1		$	812

Provision (benefit) for income taxes
Current operating income	$	(23	)	$	167		$	(6	)	$	1	$	—		$	139
Capital gains/losses	9			32			3			—		—			44
Deferred	8			1			29			—		—			38
Total provision (benefit) for income taxes	$	(6	)	$	200		$	26		$	1	$	—		$	221

Net income - current year	$	25		$	516		$	48		$	1	$	1		$	591

Net income (loss) - prior year	$	(9	)	$	596		$	41		$	3	$	3		$	634
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.

CINF Fourth-Quarter 2016 Supplemental Financial Data



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

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I			ELIM			Total
Revenues
Premiums earned:
Property casualty	$	—		$	1,182		$	—		$	—		$	—		$	1,182
Life	—			—			70			—			—			70
Premiums ceded	—			(43		)	(17		)	—			—			(60		)
Total earned premium	—			1,139			53			—			—			1,192
Investment income, net of expenses	18			97			38			—			—			153
Realized investment gains (losses), net	(15		)	(26		)	4			—			—			(37		)
Fee revenues	—			3			1			—			—			4
Other revenues	4			—			—			—			(4		)	—
Total revenues	$	7		$	1,213		$	96		$	—		$	(4	)	$	1,312

Benefits & expenses
Losses & contract holders' benefits	$	—		$	757		$	75		$	—		$	—		$	832
Reinsurance recoveries	—			(6		)	(17		)	—			—			(23		)
Underwriting, acquisition and insurance expenses	—			345			14			—			—			359
Interest expense	13			—			—			1			—			14
Other operating expenses	6			—			—			—			(4		)	2
Total expenses	$	19		$	1,096		$	72		$	1		$	(4	)	$	1,184

Income (loss) before income taxes	$	(12	)	$	117		$	24		$	(1	)	$	—		$	128

Provision (benefit) for income taxes
Current operating income	$	(5	)	$	28		$	(1	)	$	—		$	—		$	22
Capital gains/losses	(5		)	(9		)	2			—			—			(12		)
Deferred	2			9			7			—			—			18
Total provision (benefit) for income taxes	$	(8	)	$	28		$	8		$	—		$	—		$	28

Net income (loss) - current year	$	(4	)	$	89		$	16		$	(1	)	$	—		$	100

Net income (loss) - prior year	$	(16	)	$	161		$	10		$	2		$	(1	)	$	156
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.

CINF Fourth-Quarter 2016 Supplemental Financial Data



Cincinnati Financial Corporation
5-Year Net Income Reconciliation
(Dollars in millions except per share data)	Years ended December 31,
	2016			2015			2014			2013			2012
Net income	$	591		$	634		$	525		$	517		$	421
Less:
Realized investment gains, net	124			70			133			83			42
Income tax on realized investment gains	(44		)	(25		)	(48		)	(29		)	(14		)
Realized investment gains, after-tax	80			45			85			54			28
Operating income	$	511		$	589		$	440		$	463		$	393

Diluted per share data:
Net income	$	3.55		$	3.83		$	3.18		$	3.12		$	2.57
Less:
Realized investment gains, net	0.74			0.42			0.81			0.50			0.26
Income tax on realized investment gains	(0.26		)	(0.15		)	(0.29		)	(0.18		)	(0.09		)
Realized investment gains, after-tax	0.48			0.27			0.52			0.32			0.17
Operating income	$	3.07		$	3.56		$	2.66		$	2.80		$	2.40

Value creation ratio
Book value per share growth	9.6		%	(2.3		)%	7.9		%	11.1		%	7.4		%
Shareholder dividend declared as a percentage of beginning book value	4.9			5.7			4.7			5.0			5.2
Value creation ratio	14.5		%	3.4		%	12.6		%	16.1		%	12.6		%

Investment income
Investment income, net of expenses	$	595		$	572		$	549		$	529		$	531
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.

CINF Fourth-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)	$	6,715	$	6,843	$	6,758	$	6,607	$	6,435	$	6,472	$	6,435	$	6,325
Equities (fair value)	3,474		3,474		3,443		3,222		3,101		2,961		3,108		3,108
Fixed maturities - pretax net unrealized gain	163		384		414		301		234		283		280		387
Equities - pretax net unrealized gain	1,577		1,438		1,395		1,302		1,203		1,063		1,297		1,397
Loss and loss expense reserves - STAT	4,742		4,639		4,611		4,480		4,382		4,366		4,357		4,302
Shareholders' equity - GAAP	5,746		5,926		5,848		5,655		5,444		5,397		5,485		5,593
Policyholders' Surplus - STAT	4,686		4,679		4,600		4,534		4,413		4,324		4,419		4,436

The Cincinnati Life Insurance Company
Fixed maturities (fair value)	$	3,316	$	3,354	$	3,320	$	3,215	$	3,154	$	3,221	$	3,176	$	3,199
Equities (fair value)	9		9		9		9		9		9		8		9
Fixed maturities - pretax net unrealized gain	107		196		186		124		76		133		151		220
Equities - pretax net unrealized gain	4		4		4		4		4		4		3		4
Shareholders' equity - GAAP	939		979		962		911		872		897		896		927
Policyholders' Surplus - STAT	200		202		205		207		208		215		217		219

CINF Fourth-Quarter 2016 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Statutory Statements of Income

	For the Three Months Ended December 31,											For the Twelve Months Ended December 31,
(Dollars in millions)	2016			2015			Change			% Change		2016		2015		Change			% Change
Underwriting income
Net premiums written	$	1,064		$	1,055		$	9		1		$	4,580	$	4,361	$	219		5
Unearned premiums increase (decrease)	(75		)	(40		)	(35		)	(88	)	98		90		8			9
Earned premiums	$	1,139		$	1,095		$	44		4		$	4,482	$	4,271	$	211		5

Losses incurred	$	618		$	496		$	122		25		$	2,395	$	2,125	$	270		13
Defense and cost containment expenses incurred	68			62			6			10		206		214		(8		)	(4	)
Adjusting and other expenses incurred	65			58			7			12		260		233		27			12
Other underwriting expenses incurred	338			336			2			1		1,389		1,311		78			6
Workers compensation dividend incurred	3			4			(1		)	(25	)	15		15		—			0
Total underwriting deductions	$	1,092		$	956		$	136		14		$	4,265	$	3,898	$	367		9

Net underwriting profit	$	47		$	139		$	(92	)	(66	)	$	217	$	373	$	(156	)	(42	)

Investment income
Gross investment income earned	$	99		$	97		$	2		2		$	391	$	379	$	12		3
Net investment income earned	98			96			2			2		385		373		12			3
Realized capital gains and losses, net	(16		)	(13		)	(3		)	(23	)	65		49		16			33
Net investment gains (net of tax)	$	82		$	83		$	(1	)	(1	)	$	450	$	422	$	28		7

Other income	$	2		$	2		$	—		0		$	7	$	7	$	—		0

Net income before federal income taxes	$	131		$	224		$	(93	)	(42	)	$	674	$	802	$	(128	)	(16	)
Federal and foreign income taxes incurred	28			54			(26		)	(48	)	168		204		(36		)	(18	)
Net income (statutory)	$	103		$	170		$	(67	)	(39	)	$	506	$	598	$	(92	)	(15	)
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 Fourth-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	$	(7	)	$	10		$	23		$	—		$	4		$	8		$	5		$	12	$	23		$	17	$	33		$	25	$	26		$	29
Current accident year losses $1,000,000-$5,000,000	63			46			34			42			57			43			24			37		76			61		122			104		185			161
Large loss prior accident year reserve development	(10		)	1			3			—			(3		)	19			(4		)	15		3			11		4			30		(6		)	27
Total large losses incurred	$	46		$	57		$	60		$	42		$	58		$	70		$	25		$	64	$	102		$	89	$	159		$	159	$	205		$	217
Losses incurred but not reported	64			(7		)	34			73			20			(31		)	38			43		107			81		100			50		164			70
Other losses excluding catastrophe losses	430			467			399			402			406			441			417			418		801			835		1,269			1,276		1,699			1,682
Catastrophe losses	78			53			163			33			12			24			78			42		196			120		249			144		327			156
Total losses incurred	$	618		$	570		$	656		$	550		$	496		$	504		$	558		$	567	$	1,206		$	1,125	$	1,777		$	1,629	$	2,395		$	2,125
Commercial Lines
Current accident year losses greater than $5,000,000	$	(7	)	$	10		$	23		$	—		$	4		$	8		$	5		$	12	$	23		$	17	$	33		$	25	$	26		$	29
Current accident year losses $1,000,000-$5,000,000	59			34			33			36			48			26			14			24		69			38		103			64		162			112
Large loss prior accident year reserve development	(6		)	5			4			(1		)	(3		)	17			(4		)	15		3			11		8			28		2			25
Total large losses incurred	$	46		$	49		$	60		$	35		$	49		$	51		$	15		$	51	$	95		$	66	$	144		$	117	$	190		$	166
Losses incurred but not reported	55			4			2			64			20			(17		)	17			31		66			48		70			31		125			51
Other losses excluding catastrophe losses	269			287			244			255			253			277			274			272		499			546		786			823		1,055			1,076
Catastrophe losses	35			28			126			25			7			9			43			29		151			72		179			81		214			88
Total losses incurred	$	405		$	368		$	432		$	379		$	329		$	320		$	349		$	383	$	811		$	732	$	1,179		$	1,052	$	1,584		$	1,381
Personal Lines
Current accident year losses greater than $5,000,000	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	—	$	—		$	—	$	—		$	—
Current accident year losses $1,000,000-$5,000,000	3			10			—			6			8			15			10			12		6			22		16			37		19			45
Large loss prior accident year reserve development	(3		)	(3		)	(2		)	1			—			—			—			—		(1		)	—		(4		)	—		(7		)	—
Total large losses incurred	$	—		$	7		$	(2	)	$	7		$	8		$	15		$	10		$	12	$	5		$	22	$	12		$	37	$	12		$	45
Losses incurred but not reported	10			(9		)	23			11			9			(12		)	14			7		34			21		25			9		35			18
Other losses excluding catastrophe losses	150			168			141			133			141			155			136			134		274			270		442			425		592			566
Catastrophe losses	39			25			35			8			4			15			34			13		43			47		68			62		107			66
Total losses incurred	$	199		$	191		$	197		$	159		$	162		$	173		$	194		$	166	$	356		$	360	$	547		$	533	$	746		$	695
Excess & Surplus Lines
Current accident year losses greater than $5,000,000	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	—	$	—		$	—	$	—		$	—
Current accident year losses $1,000,000-$5,000,000	—			2			1			—			1			2			—			1		1			1		3			3		3			4
Large loss prior accident year reserve development	—			(1		)	1			—			1			2			—			—		1			—		—			2		—			3
Total large losses incurred	$	—		$	1		$	2		$	—		$	2		$	4		$	—		$	1	$	2		$	1	$	3		$	5	$	3		$	7
Losses incurred but not reported	—			(2		)	9			(2		)	(8		)	(2		)	7			5		7			12		5			10		5			2
Other losses excluding catastrophe losses	6			11			5			9			7			9			7			12		14			19		25			28		31			35
Catastrophe losses	1			—			2			—			—			—			1			—		2			1		2			1		3			1
Total losses incurred	$	7		$	10		$	18		$	7		$	1		$	11		$	15		$	18	$	25		$	33	$	35		$	44	$	42		$	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 Fourth-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	(0.6	)%	0.9	%	2.0	%	—	%	0.5	%	0.7	%	0.5	%	1.0	%	1.0	%	0.8	%	1.0	%	0.8	%	0.6	%	0.7	%
Current accident year losses $1,000,000-$5,000,000	5.6		4.1		3.1		3.8		5.2		4.1		2.1		3.6		3.5		2.9		3.6		3.3		4.1		3.8
Large loss prior accident year reserve development	(0.9	)	0.2		0.3		—		(0.2	)	1.7		(0.3	)	1.4		0.1		0.5		0.1		0.9		(0.1	)	0.6
Total large loss ratio	4.1	%	5.2	%	5.4	%	3.8	%	5.5	%	6.5	%	2.3	%	6.0	%	4.6	%	4.2	%	4.7	%	5.0	%	4.6	%	5.1	%
Losses incurred but not reported	5.7		(0.7	)	3.1		6.6		1.9		(2.9	)	3.6		4.2		4.8		3.9		3.0		1.6		3.7		1.6
Other losses excluding catastrophe losses	37.5		41.3		35.7		36.8		36.9		40.9		39.6		40.1		36.2		39.8		38.1		40.2		37.8		39.5
Catastrophe losses	6.9		4.7		14.6		3.0		1.0		2.3		7.3		4.1		8.9		5.7		7.4		4.5		7.3		3.6
Total loss ratio	54.2	%	50.5	%	58.8	%	50.2	%	45.3	%	46.8	%	52.8	%	54.4	%	54.5	%	53.6	%	53.2	%	51.3	%	53.4	%	49.8	%
Commercial Lines
Current accident year losses greater than $5,000,000	(0.9	)%	1.3	%	2.9	%	—	%	0.7	%	1.0	%	0.7	%	1.6	%	1.5	%	1.2	%	1.4	%	1.1	%	0.8	%	1.0	%
Current accident year losses $1,000,000-$5,000,000	7.7		4.4		4.2		4.8		6.2		3.7		1.7		3.3		4.5		2.6		4.4		2.9		5.3		3.7
Large loss prior accident year reserve development	(0.8	)	0.8		0.6		(0.2	)	(0.4	)	2.3		(0.5	)	2.0		0.2		0.7		0.4		1.3		0.1		0.8
Total large loss ratio	6.0	%	6.5	%	7.7	%	4.6	%	6.5	%	7.0	%	1.9	%	6.9	%	6.2	%	4.5	%	6.2	%	5.3	%	6.2	%	5.5	%
Losses incurred but not reported	7.1		0.4		0.3		8.4		2.8		(2.4	)	2.2		4.3		4.3		3.2		3.0		1.3		4.0		1.7
Other losses excluding catastrophe losses	34.4		36.7		31.6		33.6		33.1		36.3		37.0		37.1		32.6		37.0		34.1		36.8		34.2		35.9
Catastrophe losses	4.4		3.7		16.4		3.3		0.9		1.3		5.8		4.0		9.9		4.9		7.8		3.7		6.9		3.0
Total loss ratio	51.9	%	47.3	%	56.0	%	49.9	%	43.3	%	42.2	%	46.9	%	52.3	%	53.0	%	49.6	%	51.1	%	47.1	%	51.3	%	46.1	%
Personal Lines
Current accident year losses greater than $5,000,000	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%
Current accident year losses $1,000,000-$5,000,000	1.2		3.5		—		1.9		3.1		5.2		3.5		4.5		1.0		4.1		1.8		4.5		1.7		4.1
Large loss prior accident year reserve development	(1.2	)	(1.1	)	(0.7	)	0.5		—		(0.2	)	0.1		—		(0.1	)	—		(0.4	)	—		(0.6	)	—
Total large loss ratio	—	%	2.4	%	(0.7	)%	2.4	%	3.1	%	5.0	%	3.6	%	4.5	%	0.9	%	4.1	%	1.4	%	4.5	%	1.1	%	4.1	%
Losses incurred but not reported	3.5		(3.2	)	8.1		3.8		3.1		(4.2	)	5.1		2.7		6.0		3.9		2.9		1.1		3.0		1.6
Other losses excluding catastrophe losses	50.2		57.7		48.9		47.1		49.9		56.3		50.0		49.9		47.9		49.8		51.2		52.0		51.0		51.6
Catastrophe losses	13.3		8.2		12.2		2.9		1.6		5.4		12.5		4.9		7.6		8.7		7.8		7.6		9.2		6.0
Total loss ratio	67.0	%	65.1	%	68.5	%	56.2	%	57.7	%	62.5	%	71.2	%	62.0	%	62.4	%	66.5	%	63.3	%	65.2	%	64.3	%	63.3	%
Excess & Surplus Lines
Current accident year losses greater than $5,000,000	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%
Current accident year losses $1,000,000-$5,000,000	(0.1	)	4.4		2.2		—		2.3		4.8		—		2.5		1.1		1.2		2.3		2.5		1.7		2.4
Large loss prior accident year reserve development	(0.1	)	(2.0	)	1.7		(0.4	)	1.5		5.0		—		—		0.7		—		(0.3	)	1.7		(0.3	)	1.7
Total large loss ratio	(0.2	)%	2.4	%	3.9	%	(0.4	)%	3.8	%	9.8	%	—	%	2.5	%	1.8	%	1.2	%	2.0	%	4.2	%	1.4	%	4.1	%
Losses incurred but not reported	(0.6	)	(2.9	)	20.3		(5.4	)	(19.5	)	(4.4	)	18.3		11.8		7.8		15.1		4.1		8.4		2.9		1.0
Other losses excluding catastrophe losses	12.6		21.8		12.7		20.8		16.8		21.2		17.5		29.9		16.6		23.5		18.4		22.7		16.8		21.2
Catastrophe losses	2.4		0.1		3.1		0.1		—		0.3		0.4		0.8		1.7		0.6		1.1		0.5		1.5		0.4
Total loss ratio	14.2	%	21.4	%	40.0	%	15.1	%	1.1	%	26.9	%	36.2	%	45.0	%	27.9	%	40.4	%	25.6	%	35.8	%	22.6	%	26.7	%
*Certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.

CINF Fourth-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	3	—	1	1	1	2	3	3	4	4	3	5
Current accident year reported losses $1,000,000 - $5,000,000	38	29	15	27	37	28	14	27	46	42	76	74	113	112
Prior accident year reported losses on large losses	8	2	17	10	8	6	9	15	27	27	26	35	36	46
Non-Catastrophe reported losses on large losses total	46	32	35	37	46	35	24	44	76	72	106	113	152	163
Commercial Lines
Current accident year reported losses greater than $5,000,000	—	1	3	—	1	1	1	2	3	3	4	4	3	5
Current accident year reported losses $1,000,000 - $5,000,000	36	21	14	23	29	17	9	18	41	26	62	46	97	77
Prior accident year reported losses on large losses	8	1	15	8	6	5	9	14	23	26	23	32	33	41
Non-Catastrophe reported losses on large losses total	44	23	32	31	36	23	19	34	67	55	89	82	133	123
Personal Lines
Current accident year reported losses greater than $5,000,000	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Current accident year reported losses $1,000,000 - $5,000,000	2	6	—	4	7	9	5	8	4	15	11	25	13	31
Prior accident year reported losses on large losses	—	—	1	2	1	—	—	1	3	1	2	1	2	2
Non-Catastrophe reported losses on large losses total	2	6	1	6	8	9	5	9	7	16	13	26	15	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	—	2	1	—	1	2	—	1	1	1	3	3	3	4
Prior accident year reported losses on large losses	—	1	1	—	1	1	—	—	1	—	1	2	1	3
Non-Catastrophe reported losses on large losses total	—	3	2	—	2	3	—	1	2	1	4	5	4	7
*The sum of quarterly amounts may not equal the full year as each is computed independently.

CINF Fourth-Quarter 2016 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Direct Written Premiums by Risk State by Line of Business for the Twelve Months Ended December 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
Risk State	Comm Casualty		Comm Property		Comm Auto		Workers' Comp		Other Comm		Personal Auto		Home Owner		Other Personal		All Lines		Total		Total
OH	$	158.2	$	139.3	$	84.3	$	—	$	35.1	$	132.3	$	109.9	$	34.9	$	15.6	$	709.6	$	689.7	4.9		(0.3	)	10.3		2.9
IL	67.8		57.5		32.9		55.0		13.5		30.4		30.7		7.9		12.7		308.4		306.3		1.9		(3.5	)	3.4		0.7
IN	55.8		53.1		32.8		30.8		12.9		33.9		36.3		8.0		11.5		275.1		275.4		1.1		(2.5	)	(2.6	)	(0.1	)
GA	43.2		42.3		31.3		14.5		12.5		46.8		44.7		11.2		12.8		259.3		239.6		7.7		7.6		20.6		8.2
MI	47.8		40.8		25.9		18.7		10.7		55.0		35.6		5.9		7.6		248.0		236.6		1.4		11.7		(8.0	)	4.8
PA	63.7		48.2		39.1		45.3		10.8		14.1		11.2		4.1		9.5		246.0		242.8		0.4		3.6		17.6		1.3
NC	48.7		55.4		24.4		17.7		12.6		37.1		31.7		8.4		8.7		244.7		230.6		4.4		8.5		20.2		6.1
TN	39.7		41.7		23.3		10.4		10.5		19.8		23.7		5.8		5.6		180.5		171.8		5.3		3.9		10.9		5.1
KY	29.4		36.8		21.0		3.5		7.4		29.4		28.3		6.5		5.2		167.5		160.3		5.2		4.1		(1.3	)	4.6
AL	26.3		35.5		13.3		0.8		7.0		23.4		34.3		7.1		8.2		155.9		154.5		(1.7	)	3.7		6.5		0.9
VA	34.7		31.5		21.7		18.4		10.9		13.8		11.1		3.8		4.8		150.7		146.6		2.1		8.1		(8.4	)	2.8
TX	53.4		29.7		32.3		1.5		5.5		—		—		—		17.1		139.5		130.0		8.6		(63.3	)	(1.2	)	7.3
WI	30.7		27.3		14.2		27.9		6.5		9.4		9.8		3.8		4.4		134.0		129.6		2.7		3.4		24.2		3.4
MN	29.2		25.0		10.7		11.6		5.5		19.6		20.0		5.0		6.3		132.9		130.7		(0.7	)	3.2		30.9		1.7
MO	30.6		34.5		16.6		14.2		6.0		8.0		11.0		2.3		8.4		131.6		124.9		3.4		13.2		11.9		5.4
NY	32.9		19.2		12.3		3.5		4.0		8.0		8.3		2.9		3.1		94.2		80.9		4.6		120.1		(10.1	)	16.4
MD	22.6		13.3		17.0		11.8		3.8		10.8		8.8		2.4		2.6		93.1		85.7		2.9		32.2		9.4		8.7
IA	16.6		18.8		8.1		15.4		5.3		5.0		5.7		1.7		2.1		78.7		84.7		(8.5	)	0.7		(6.1	)	(7.1	)
AR	11.7		21.2		11.6		2.2		4.4		10.5		11.3		2.7		2.8		78.4		71.7		10.8		7.6		(0.4	)	9.3
SC	14.3		14.0		10.7		3.5		3.7		11.2		8.3		1.9		3.4		71.0		66.4		2.2		17.7		14.1		7.0
FL	26.7		15.4		10.0		0.9		2.9		4.5		1.7		0.7		8.2		71.0		68.6		1.1		7.5		18.7		3.5
AZ	18.9		11.0		13.9		5.8		2.8		6.4		4.8		1.9		3.2		68.7		62.3		9.2		12.2		16.5		10.1
UT	20.5		9.9		12.1		0.6		3.1		8.9		5.0		1.2		3.3		64.6		61.3		5.0		5.9		9.3		5.4
KS	10.6		14.5		6.4		5.9		3.3		4.6		6.9		1.3		1.9		55.4		55.0		1.6		(5.0	)	29.2		0.7
CO	18.0		9.9		12.5		0.6		2.3		0.1		0.5		—		6.3		50.2		47.7		4.0		39.9		11.6		5.2
MT	18.1		11.3		9.7		0.1		2.0		2.9		2.9		0.7		1.3		49.0		46.3		6.8		(2.1	)	17.3		5.8
OR	14.2		8.1		9.4		0.1		2.1		4.3		2.0		0.6		4.8		45.6		37.3		18.6		54.7		10.9		22.1
NE	10.2		11.9		5.6		9.1		2.2		0.8		1.1		0.3		1.8		43.0		42.4		1.5		4.4		(4.9	)	1.4
ID	13.9		9.0		7.9		0.6		1.9		3.7		2.5		0.8		1.9		42.2		39.9		5.5		5.6		10.1		5.7
WV	8.7		8.9		7.0		1.0		1.4		—		0.5		0.1		3.0		30.6		32.6		(6.8	)	0.1		(2.6	)	(6.3	)
VT	5.4		6.3		3.0		5.1		1.8		1.5		1.7		0.5		1.2		26.5		26.1		0.7		6.4		(1.0	)	1.4
CT	4.8		4.7		2.3		2.1		0.8		4.6		4.1		1.5		1.4		26.3		18.1		7.2		188.8		59.4		45.2
WA	8.8		5.4		6.2		—		1.4		—		—		—		1.8		23.6		21.3		12.0		(3.9	)	2.8		11.2
NM	8.7		5.2		5.6		0.9		1.8		—		—		—		1.0		23.2		20.5		13.1		68.4		10.5		13.0
ND	7.2		5.4		3.8		—		1.2		0.8		0.9		0.3		0.4		20.0		22.1		(11.3	)	5.3		10.5		(9.5	)
DE	6.0		3.9		3.1		3.8		1.0		—		—		—		0.7		18.5		16.3		13.5		(71.2	)	15.7		13.5
NH	4.3		3.5		2.0		2.5		1.1		1.8		1.9		0.5		0.6		18.2		18.1		(0.5	)	3.8		4.8		0.6
SD	3.3		3.8		1.9		2.4		0.9		—		—		—		0.6		12.9		12.8		0.5		2.5		0.4		0.5
WY	2.5		2.5		1.2		—		0.6		—		—		—		0.7		7.5		7.7		(3.1	)	21.2		14.1		(1.5	)
CA	0.7		0.3		1.3		1.8		0.2		0.4		1.5		0.4		0.2		6.8		4.7		(4.0	)	nm		19.5		47.1
NJ	0.8		0.4		0.3		1.9		0.3		0.3		0.5		0.2		0.2		4.9		3.4		9.7		nm		233.4		44.9
All Other	2.8		1.7		1.7		3.0		2.2		—		0.5		—		1.7		13.6		13.4		(5.6	)	48.2		87.1		1.1
Total	$	1,072.4	$	938.1	$	610.4	$	354.9	$	225.9	$	564.1	$	519.7	$	137.3	$	198.6	$	4,621.4	$	4,436.7	3.2		6.0		8.3		4.2
Other Direct	—		3.1		3.7		7.0		—		10.3		0.3		—		—		24.4		24.5		(2.4	)	2.2		nm		(0.5	)
Total Direct	$	1,072.4	$	941.2	$	614.1	$	361.9	$	225.9	$	574.4	$	520.0	$	137.3	$	198.6	$	4,645.8	$	4,461.2	3.2		6.0		8.3		4.1
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 Fourth-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	$	239		$	259		$	278		$	285		$	238		$	247		$	274		$	266		$	563		$	540		$	822		$	787		$	1,061		$	1,025
Earned premiums	265			265			263			257			257			257			252			244			520			496			785			753			1,050			1,010
Current accident year before catastrophe losses	61.1		%	57.4		%	58.7		%	60.2		%	61.5		%	53.6		%	59.6		%	59.2		%	59.5		%	59.4		%	58.8		%	57.4		%	59.4		%	58.5		%
Current accident year catastrophe losses	—			—			—			—			—			—			—			—			—			—			—			—			—			—
Prior accident years before catastrophe losses	3.7			(2.6		)	(7.5		)	(1.2		)	(10.6		)	(6.2		)	(9.1		)	1.1			(4.4		)	(4.1		)	(3.8		)	(4.8		)	(1.9		)	(6.3		)
Prior accident years catastrophe losses	—			—			—			—			—			—			—			—			—			—			—			—			—
Total loss and loss expense ratio	64.8		%	54.8		%	51.2		%	59.0		%	50.9		%	47.4		%	50.5		%	60.3		%	55.1		%	55.3		%	55.0		%	52.6		%	57.5		%	52.2		%
Commercial property:
Written premiums	$	208		$	224		$	223		$	225		$	203		$	218		$	218		$	206		$	448		$	424		$	672		$	642		$	880		$	845
Earned premiums	221			217			215			214			211			205			201			196			429			399			646			604			867			815
Current accident year before catastrophe losses	51.3		%	47.7		%	36.3		%	51.4		%	44.1		%	47.0		%	42.1		%	53.6		%	43.8		%	47.8		%	45.2		%	47.5		%	46.6		%	46.6		%
Current accident year catastrophe losses	17.4			11.5			57.6			13.6			5.0			5.2			19.6			16.7			35.7			18.2			27.5			13.8			25.0			11.5
Prior accident years before catastrophe losses	(0.6		)	(2.7		)	(5.4		)	(1.7		)	3.0			(0.2		)	(2.0		)	(1.9		)	(3.6		)	(2.0		)	(3.3		)	(1.4		)	(2.6		)	(0.3		)
Prior accident years catastrophe losses	(1.3		)	1.6			(1.0		)	(2.2		)	(1.3		)	0.3			0.1			(3.8		)	(1.6		)	(1.8		)	(0.5		)	(1.1		)	(0.7		)	(1.1		)
Total loss and loss expense ratio	66.8		%	58.1		%	87.5		%	61.1		%	50.8		%	52.3		%	59.8		%	64.6		%	74.3		%	62.2		%	68.9		%	58.8		%	68.3		%	56.7		%
Commercial auto:
Written premiums	$	146		$	151		$	156		$	158		$	140		$	137		$	149		$	149		$	314		$	298		$	465		$	435		$	611		$	575
Earned premiums	152			151			147			144			145			141			139			136			291			275			442			416			594			561
Current accident year before catastrophe losses	76.6		%	76.9		%	76.3		%	77.5		%	71.2		%	71.4		%	75.8		%	72.3		%	76.9		%	74.1		%	76.9		%	73.1		%	76.8		%	72.6		%
Current accident year catastrophe losses	—			0.8			2.2			0.6			0.1			—			1.3			—			1.4			0.7			1.2			0.5			0.9			0.4
Prior accident years before catastrophe losses	3.7			2.8			9.1			5.7			3.0			3.2			8.3			8.6			7.4			8.4			5.9			6.6			5.3			5.7
Prior accident years catastrophe losses	—			—			—			(0.1		)	—			(0.1		)	(0.2		)	(0.1		)	(0.1		)	(0.2		)	(0.1		)	(0.1		)	—			(0.1		)
Total loss and loss expense ratio	80.3		%	80.5		%	87.6		%	83.7		%	74.3		%	74.5		%	85.2		%	80.8		%	85.6		%	83.0		%	83.9		%	80.1		%	83.0		%	78.6		%
Workers' compensation:
Written premiums	$	78		$	83		$	86		$	105		$	81		$	83		$	89		$	104		$	191		$	193		$	274		$	276		$	352		$	357
Earned premiums	86			90			89			89			91			93			90			93			178			183			268			276			354			367
Current accident year before catastrophe losses	68.4		%	72.5		%	70.9		%	73.3		%	73.2		%	71.1		%	77.6		%	71.5		%	72.2		%	74.5		%	72.2		%	73.4		%	71.3		%	73.3		%
Current accident year catastrophe losses	—			—			—			—			—			—			—			—			—			—			—			—			—			—
Prior accident years before catastrophe losses	(19.4		)	(18.1		)	(25.5		)	(14.5		)	(14.0		)	(26.4		)	(44.8		)	(16.1		)	(20.1		)	(30.3		)	(19.4		)	(29.0		)	(19.4		)	(25.3		)
Prior accident years catastrophe losses	—			—			—			—			—			—			—			—			—			—			—			—			—			—
Total loss and loss expense ratio	49.0		%	54.4		%	45.4		%	58.8		%	59.2		%	44.7		%	32.8		%	55.4		%	52.1		%	44.2		%	52.8		%	44.4		%	51.9		%	48.0		%
Other commercial:
Written premiums	$	50		$	60		$	54		$	54		$	50		$	60		$	55		$	58		$	108		$	113		$	168		$	173		$	218		$	223
Earned premiums	55			56			57			56			57			61			61			64			113			125			169			186			224			243
Current accident year before catastrophe losses	41.8		%	41.5		%	37.8		%	46.3		%	37.3		%	45.9		%	42.7		%	54.4		%	42.1		%	48.6		%	41.9		%	47.7		%	41.9		%	45.3		%
Current accident year catastrophe losses	2.1			1.6			3.8			0.6			0.4			1.2			3.4			9.7			2.2			6.6			2.0			4.9			2.0			3.8
Prior accident years before catastrophe losses	(8.6		)	(19.1		)	(28.2		)	(22.9		)	(2.9		)	(9.8		)	(13.6		)	(0.2		)	(25.5		)	(6.7		)	(23.4		)	(7.7		)	(19.8		)	(6.6		)
Prior accident years catastrophe losses	—			0.2			1.3			0.2			(0.7		)	(2.1		)	1.2			(2.6		)	0.7			(0.7		)	0.5			(1.2		)	0.4			(1.1		)
Total loss and loss expense ratio	35.3		%	24.2		%	14.7		%	24.2		%	34.1		%	35.2		%	33.7		%	61.3		%	19.5		%	47.8		%	21.0		%	43.7		%	24.5		%	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 Fourth-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	$	132		$	154		$	154		$	123		$	124		$	144		$	142		$	114		$	277		$	256		$	431		$	400		$	563		$	524
Earned premiums	140			137			135			131			130			128			125			123			266			248			403			376			543			506
Current accident year before catastrophe losses	79.0		%	79.6		%	79.5		%	79.1		%	76.6		%	74.5		%	79.7		%	81.6		%	79.3		%	80.8		%	79.4		%	78.6		%	79.3		%	78.1		%
Current accident year catastrophe losses	0.1			1.1			1.9			1.0			0.7			0.6			2.3			0.2			1.4			1.2			1.3			1.0			1.0			0.9
Prior accident years before catastrophe losses	2.2			6.8			10.6			(6.3		)	2.3			1.2			5.8			3.0			2.3			4.4			3.8			3.3			3.4			3.0
Prior accident years catastrophe losses	(0.1		)	(0.2		)	(0.1		)	(0.3		)	(0.1		)	(0.1		)	(0.1		)	(0.2		)	(0.2		)	(0.3		)	(0.2		)	(0.2		)	(0.2		)	(0.1		)
Total loss and loss expense ratio	81.2		%	87.3		%	91.9		%	73.5		%	79.5		%	76.2		%	87.7		%	84.6		%	82.8		%	86.1		%	84.3		%	82.7		%	83.5		%	81.9		%
Homeowner:
Written premiums	$	119		$	138		$	140		$	103		$	112		$	132		$	132		$	98		$	243		$	230		$	381		$	362		$	500		$	474
Earned premiums	124			122			121			119			118			117			114			114			240			228			362			345			486			463
Current accident year before catastrophe losses	47.0		%	46.8		%	49.1		%	51.5		%	50.2		%	52.8		%	52.9		%	55.5		%	50.3		%	54.1		%	49.1		%	53.7		%	48.6		%	52.8		%
Current accident year catastrophe losses	31.7			19.5			25.4			6.4			3.9			12.6			25.6			12.3			16.0			19.0			17.1			16.8			20.9			13.5
Prior accident years before catastrophe losses	1.1			0.5			(0.8		)	(5.2		)	—			(1.0		)	(2.4		)	(5.1		)	(3.0		)	(3.7		)	(1.8		)	(2.8		)	(1.1		)	(2.1		)
Prior accident years catastrophe losses	(0.7		)	(0.9		)	0.8			(1.6		)	(0.5		)	(0.1		)	(0.3		)	(1.2		)	(0.4		)	(0.7		)	(0.5		)	(0.5		)	(0.6		)	(0.5		)
Total loss and loss expense ratio	79.1		%	65.9		%	74.5		%	51.1		%	53.6		%	64.3		%	75.8		%	61.5		%	62.9		%	68.7		%	63.9		%	67.2		%	67.8		%	63.7		%
Other personal:
Written premiums	$	32		$	37		$	36		$	30		$	30		$	36		$	35		$	29		$	66		$	64		$	103		$	100		$	135		$	130
Earned premiums	33			34			32			33			32			32			33			31			65			64			99			96			132			128
Current accident year before catastrophe losses	48.2		%	60.2		%	42.0		%	44.2		%	49.9		%	70.1		%	58.2		%	49.6		%	43.1		%	53.9		%	48.9		%	59.4		%	48.7		%	57.0		%
Current accident year catastrophe losses	5.5			2.6			4.7			5.8			0.3			1.2			8.4			2.8			5.2			5.6			4.4			4.1			4.7			3.2
Prior accident years before catastrophe losses	(9.4		)	(11.5		)	(13.5		)	(4.6		)	4.1			7.6			(4.9		)	1.1			(9.0		)	(1.9		)	(9.9		)	1.3			(9.8		)	2.0
Prior accident years catastrophe losses	(0.4		)	(0.4		)	—			0.3			(0.1		)	(0.1		)	—			(0.8		)	0.1			(0.4		)	(0.1		)	(0.3		)	(0.2		)	(0.3		)
Total loss and loss expense ratio	43.9		%	50.9		%	33.2		%	45.7		%	54.2		%	78.8		%	61.7		%	52.7		%	39.4		%	57.2		%	43.3		%	64.5		%	43.4		%	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		$	48		$	51		$	45		$	44		$	43		$	46		$	42		$	96		$	88		$	144		$	131		$	189		$	175
Earned premiums	47			48			45			43			44			42			42			40			88			82			136			124			183			168
Current accident year before catastrophe losses	41.4		%	57.2		%	56.7		%	63.1		%	51.3		%	56.9		%	69.3		%	72.1		%	59.8		%	70.7		%	58.9		%	65.9		%	54.4		%	62.1		%
Current accident year catastrophe losses	2.6			0.2			3.2			0.3			0.2			0.3			0.6			1.2			1.9			0.9			1.3			0.7			1.6			0.5
Prior accident years before catastrophe losses	(14.7		)	(25.5		)	(1.9		)	(31.5		)	(32.5		)	(15.4		)	(20.2		)	(13.6		)	(16.4		)	(17.0		)	(19.6		)	(16.4		)	(18.3		)	(20.6		)
Prior accident years catastrophe losses	—			—			—			(0.2		)	(0.1		)	0.1			(0.1		)	(0.3		)	(0.1		)	(0.2		)	(0.1		)	(0.1		)	(0.1		)	(0.1		)
Total loss and loss expense ratio	29.3		%	31.9		%	58.0		%	31.7		%	18.9		%	41.9		%	49.6		%	59.4		%	45.2		%	54.4		%	40.5		%	50.1		%	37.6		%	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 Fourth-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 twelve months ended December 31, 2016
Commercial casualty	$	313	$	163	$	476	$	32		$	91		$	14		$	137		$	345		$	91		$	177		$	613
Commercial property	493		41		534		61			—			16			77			554			—			57			611
Commercial auto	354		61		415		43			20			14			77			397			20			75			492
Workers' compensation	163		35		198		(8		)	4			4			—			155			4			39			198
Other commercial	66		18		84		(21		)	2			(17		)	(36		)	45			2			1			48
Total commercial lines	1,389		318		1,707		107			117			31			255			1,496			117			349			1,962

Personal auto	352		61		413		16			32			(4		)	44			368			32			57			457
Homeowners	267		28		295		22			9			4			35			289			9			32			330
Other personal	62		4		66		(6		)	(3		)	—			(9		)	56			(3		)	4			57
Total personal lines	681		93		774		32			38			—			70			713			38			93			844

Excess & surplus lines	35		21		56		3			5			6			14			38			5			27			70
Cincinnati Re	3		1		4		8			27			1			36			11			27			2			40
Total property casualty	$	2,108	$	433	$	2,541	$	150		$	187		$	38		$	375		$	2,258		$	187		$	471		$	2,916

Ceded loss and loss expense incurred for the twelve months ended December 31, 2016
Commercial casualty	$	4	$	1	$	5	$	3		$	(1	)	$	3		$	5		$	7		$	(1	)	$	4		$	10
Commercial property	12		—		12		6			—			—			6			18			—			—			18
Commercial auto	—		—		—		—			—			—			—			—			—			—			—
Workers' compensation	13		1		14		2			(3		)	—			(1		)	15			(3		)	1			13
Other commercial	1		—		1		(8		)	—			—			(8		)	(7		)	—			—			(7		)
Total commercial lines	30		2		32		3			(4		)	3			2			33			(4		)	5			34

Personal auto	2		—		2		—			2			(1		)	1			2			2			(1		)	3
Homeowners	1		—		1		—			—			—			—			1			—			—			1
Other personal	—		—		—		—			—			—			—			—			—			—			—
Total personal lines	3		—		3		—			2			(1		)	1			3			2			(1		)	4

Excess & surplus lines	1		—		1		2			(1		)	—			1			3			(1		)	—			2
Cincinnati Re	2		—		2		3			9			1			13			5			9			1			15
Total property casualty	$	36	$	2	$	38	$	8		$	6		$	3		$	17		$	44		$	6		$	5		$	55

Net loss and loss expense incurred for the twelve months ended December 31, 2016
Commercial casualty	$	309	$	162	$	471	$	29		$	92		$	11		$	132		$	338		$	92		$	173		$	603
Commercial property	481		41		522		55			—			16			71			536			—			57			593
Commercial auto	354		61		415		43			20			14			77			397			20			75			492
Workers' compensation	150		34		184		(10		)	7			4			1			140			7			38			185
Other commercial	65		18		83		(13		)	2			(17		)	(28		)	52			2			1			55
Total commercial lines	1,359		316		1,675		104			121			28			253			1,463			121			344			1,928

Personal auto	350		61		411		16			30			(3		)	43			366			30			58			454
Homeowners	266		28		294		22			9			4			35			288			9			32			329
Other personal	62		4		66		(6		)	(3		)	—			(9		)	56			(3		)	4			57
Total personal lines	678		93		771		32			36			1			69			710			36			94			840

Excess & surplus lines	34		21		55		1			6			6			13			35			6			27			68
Cincinnati Re	1		1		2		5			18			—			23			6			18			1			25
Total property casualty	$	2,072	$	431	$	2,503	$	142		$	181		$	35		$	358		$	2,214		$	181		$	466		$	2,861

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

CINF Fourth-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 December 31, 2016
Commercial casualty	$	76		$	43		$	119		$	11		$	38		$	9		$	58		$	87		$	38		$	52		$	177
Commercial property	126			12			138			(27		)	25			3			1			99			25			15			139
Commercial auto	94			15			109			17			(9		)	5			13			111			(9		)	20			122
Workers' compensation	39			8			47			—			(7		)	3			(4		)	39			(7		)	11			43
Other commercial	14			4			18			(2		)	3			(1		)	—			12			3			3			18
Total commercial lines	349			82			431			(1		)	50			19			68			348			50			101			499

Personal auto	92			14			106			5			1			3			9			97			1			17			115
Homeowners	77			8			85			8			4			1			13			85			4			9			98
Other personal	18			1			19			(4		)	—			—			(4		)	14			—			1			15
Total personal lines	187			23			210			9			5			4			18			196			5			27			228

Excess & surplus lines	9			5			14			—			—			1			1			9			—			6			15
Cincinnati Re	2			—			2			4			6			1			11			6			6			1			13
Total property casualty	$	547		$	110		$	657		$	12		$	61		$	25		$	98		$	559		$	61		$	135		$	755

Ceded loss and loss expense incurred for the three months ended December 31, 2016
Commercial casualty	$	3		$	—		$	3		$	—		$	—		$	2		$	2		$	3		$	—		$	2		$	5
Commercial property	—			—			—			(9		)	—			—			(9		)	(9		)	—			—			(9		)
Commercial auto	—			—			—			—			—			—			—			—			—			—			—
Workers' compensation	3			1			4			(1		)	(1		)	—			(2		)	2			(1		)	1			2
Other commercial	(1		)	—			(1		)	—			—			(1		)	(1		)	(1		)	—			(1		)	(2		)
Total commercial lines	5			1			6			(10		)	(1		)	1			(10		)	(5		)	(1		)	2			(4		)

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

Excess & surplus lines	—			—			—			2			—			—			2			2			—			—			2
Cincinnati Re	1			(1		)	—			1			2			1			4			2			2			—			4
Total property casualty	$	7		$	—		$	7		$	(7	)	$	3		$	1		$	(3	)	$	—		$	3		$	1		$	4

Net loss and loss expense incurred for the three months ended December 31, 2016
Commercial casualty	$	73		$	43		$	116		$	11		$	38		$	7		$	56		$	84		$	38		$	50		$	172
Commercial property	126			12			138			(18		)	25			3			10			108			25			15			148
Commercial auto	94			15			109			17			(9		)	5			13			111			(9		)	20			122
Workers' compensation	36			7			43			1			(6		)	3			(2		)	37			(6		)	10			41
Other commercial	15			4			19			(2		)	3			—			1			13			3			4			20
Total commercial lines	344			81			425			9			51			18			78			353			51			99			503

Personal auto	92			14			106			5			—			4			9			97			—			18			115
Homeowners	76			8			84			8			4			1			13			84			4			9			97
Other personal	18			1			19			(4		)	(1		)	—			(5		)	14			(1		)	1			14
Total personal lines	186			23			209			9			3			5			17			195			3			28			226

Excess & surplus lines	9			5			14			(2		)	—			1			(1		)	7			—			6			13
Cincinnati Re	1			1			2			3			4			—			7			4			4			1			9
Total property casualty	$	540		$	110		$	650		$	19		$	58		$	24		$	101		$	559		$	58		$	134		$	751

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

CINF Fourth-Quarter 2016 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Quarterly Property Casualty Data - Consolidated

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/16			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	$	951		$	1,036		$	1,057		$	1,028		$	925		$	999		$	1,018		$	983		$	2,085		$	2,001		$	3,121		$	3,000		$	4,072		$	3,925
Agency new business written premiums	134			149			143			125			140			138			138			116			268			254			417			392			551			532
Cincinnati Re net written premiums	15			21			16			19			33			—			—			—			35			—			56			—			71			33
Other written premiums	(36		)	(31		)	(22		)	(25		)	(43		)	(39		)	(14		)	(33		)	(47		)	(47		)	(78		)	(86		)	(114		)	(129		)
Net written premiums – statutory*	$	1,064		$	1,175		$	1,194		$	1,147		$	1,055		$	1,098		$	1,142		$	1,066		$	2,341		$	2,208		$	3,516		$	3,306		$	4,580		$	4,361
Unearned premium change	75			(42		)	(80		)	(51		)	40			(22		)	(83		)	(25		)	(131		)	(108		)	(173		)	(130		)	(98		)	(90		)
Earned premiums	$	1,139		$	1,133		$	1,114		$	1,096		$	1,095		$	1,076		$	1,059		$	1,041		$	2,210		$	2,100		$	3,343		$	3,176		$	4,482		$	4,271
Year over year change %
Agency renewal written premiums	3		%	4		%	4		%	5		%	2		%	4		%	5		%	3		%	4		%	4		%	4		%	4		%	4		%	3		%
Agency new business written premiums	(4		)	8			4			8			15			10			4			(6		)	6			(1		)	6			3			4			6
Cincinnati Re net written premiums	(55		)	nm			nm			—			—			—			—			—			nm			—			nm			—			115			—
Other written premiums	16			21			(57		)	24			(5		)	15			44			21			—			30			9			24			12			16
Net written premiums – statutory*	1			7			5			8			7			6			6			3			6			4			6			5			5			5
Paid losses and loss expenses
Losses paid	$	540		$	553		$	522		$	457		$	498		$	511		$	501		$	448		$	979		$	949		$	1,532		$	1,460		$	2,072		$	1,958
Loss expenses paid	110			109			107			105			103			93			97			98			212			195			321			288			431			391
Loss and loss expenses paid	$	650		$	662		$	629		$	562		$	601		$	604		$	598		$	546		$	1,191		$	1,144		$	1,853		$	1,748		$	2,503		$	2,349
Incurred losses and loss expenses
Loss and loss expense incurred	$	751		$	690		$	759		$	661		$	616		$	613		$	654		$	689		$	1,420		$	1,343		$	2,110		$	1,956		$	2,861		$	2,572
Loss and loss expenses paid as a % of incurred	86.6		%	95.9		%	82.9		%	85.0		%	97.6		%	98.5		%	91.4		%	79.2		%	83.9		%	85.2		%	87.8		%	89.4		%	87.5		%	91.3		%
Statutory combined ratio
Loss ratio	54.2		%	50.5		%	58.8		%	50.2		%	45.3		%	46.8		%	52.7		%	54.4		%	54.5		%	53.6		%	53.2		%	51.3		%	53.4		%	49.8		%
Loss adjustment expense ratio	11.7			10.5			9.4			10.1			11.0			10.1			9.1			11.7			9.7			10.3			9.9			10.2			10.4			10.4
Net underwriting expense ratio	32.0			30.9			29.7			29.9			32.3			30.6			28.9			30.0			29.9			29.4			30.3			29.8			30.7			30.4
Statutory combined ratio	97.9		%	91.9		%	97.9		%	90.2		%	88.6		%	87.5		%	90.7		%	96.1		%	94.1		%	93.3		%	93.4		%	91.3		%	94.5		%	90.6		%
Contribution from catastrophe losses	7.1			4.9			14.8			3.1			1.2			2.5			7.5			4.1			9.0			5.8			7.6			4.7			7.5			3.7
Statutory combined ratio excl. catastrophe losses	90.8		%	87.0		%	83.1		%	87.1		%	87.4		%	85.0		%	83.2		%	92.0		%	85.1		%	87.5		%	85.8		%	86.6		%	87.0		%	86.9		%
GAAP combined ratio
GAAP combined ratio	96.2		%	92.4		%	99.3		%	91.4		%	87.0		%	87.8		%	92.4		%	97.5		%	95.4		%	94.9		%	94.4		%	92.5		%	94.8		%	91.1		%
Contribution from catastrophe losses	7.1			4.9			14.8			3.1			1.2			2.5			7.5			4.1			9.0			5.8			7.6			4.7			7.5			3.7
GAAP combined ratio excl. catastrophe losses	89.1		%	87.5		%	84.5		%	88.3		%	85.8		%	85.3		%	84.9		%	93.4		%	86.4		%	89.1		%	86.8		%	87.8		%	87.3		%	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 Fourth-Quarter 2016 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Quarterly Property Casualty Data - Commercial Lines

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/16			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	$	658		$	698		$	718		$	758		$	649		$	678		$	699		$	730		$	1,476		$	1,429		$	2,174		$	2,107		$	2,832		$	2,756
Agency new business written premiums	91			101			93			87			97			96			93			79			180			172			281			268			372			365
Other written premiums	(28		)	(22		)	(14		)	(18		)	(34		)	(31		)	(5		)	(26		)	(32		)	(31		)	(54		)	(62		)	(82		)	(96		)
Net written premiums – statutory*	$	721		$	777		$	797		$	827		$	712		$	743		$	787		$	783		$	1,624		$	1,570		$	2,401		$	2,313		$	3,122		$	3,025
Unearned premium change	58			2			(26		)	(67		)	49			14			(42		)	(50		)	(93		)	(92		)	(91		)	(78		)	(33		)	(29		)
Earned premiums	$	779		$	779		$	771		$	760		$	761		$	757		$	745		$	733		$	1,531		$	1,478		$	2,310		$	2,235		$	3,089		$	2,996
Year over year change %
Agency renewal written premiums	1		%	3		%	3		%	4		%	1		%	4		%	4		%	2		%	3		%	3		%	3		%	4		%	3		%	3		%
Agency new business written premiums	(6		)	5			—			10			13			8			(2		)	(12		)	5			(7		)	5			(2		)	2			1
Other written premiums	18			29			(180		)	31			(6		)	14			69			19			(3		)	35			13			26			15			17
Net written premiums – statutory*	1			5			1			6			2			6			5			2			3			3			4			4			3			4
Paid losses and loss expenses
Losses paid	$	344		$	373		$	342		$	300		$	331		$	324		$	329		$	303		$	642		$	632		$	1,015		$	956		$	1,359		$	1,287
Loss expenses paid	81			80			78			76			76			68			71			73			154			144			234			212			316			288
Loss and loss expenses paid	$	425		$	453		$	420		$	376		$	407		$	392		$	400		$	376		$	796		$	776		$	1,249		$	1,168		$	1,675		$	1,575
Incurred losses and loss expenses
Loss and loss expense incurred	$	503		$	456		$	500		$	469		$	419		$	398		$	417		$	474		$	969		$	891		$	1,425		$	1,289		$	1,928		$	1,708
Loss and loss expenses paid as a % of incurred	84.5		%	99.3		%	84.0		%	80.2		%	97.1		%	98.5		%	95.9		%	79.3		%	82.1		%	87.1		%	87.6		%	90.6		%	86.9		%	92.2		%
Statutory combined ratio
Loss ratio	51.9		%	47.3		%	56.0		%	49.9		%	43.3		%	42.2		%	46.9		%	52.2		%	53.0		%	49.6		%	51.1		%	47.1		%	51.3		%	46.1		%
Loss adjustment expense ratio	12.7			11.2			8.9			11.8			11.8			10.2			9.1			12.5			10.3			10.7			10.6			10.5			11.1			10.9
Net underwriting expense ratio	33.0			32.6			30.9			29.7			33.5			32.2			29.9			29.9			30.3			29.9			31.0			30.6			31.5			31.3
Statutory combined ratio	97.6		%	91.1		%	95.8		%	91.4		%	88.6		%	84.6		%	85.9		%	94.6		%	93.6		%	90.2		%	92.7		%	88.2		%	93.9		%	88.3		%
Contribution from catastrophe losses	4.7			3.9			16.6			3.4			1.0			1.4			5.9			4.0			10.0			5.0			8.0			3.8			7.1			3.1
Statutory combined ratio excl. catastrophe losses	92.9		%	87.2		%	79.2		%	88.0		%	87.6		%	83.2		%	80.0		%	90.6		%	83.6		%	85.2		%	84.7		%	84.4		%	86.8		%	85.2		%
GAAP combined ratio
GAAP combined ratio	95.7		%	90.8		%	96.8		%	93.6		%	86.8		%	84.0		%	87.2		%	96.6		%	95.2		%	91.9		%	93.7		%	89.2		%	94.2		%	88.6		%
Contribution from catastrophe losses	4.7			3.9			16.6			3.4			1.0			1.4			5.9			4.0			10.0			5.0			8.0			3.8			7.1			3.1
GAAP combined ratio excl. catastrophe losses	91.0		%	86.9		%	80.2		%	90.2		%	85.8		%	82.6		%	81.3		%	92.6		%	85.2		%	86.9		%	85.7		%	85.4		%	87.1		%	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 Fourth-Quarter 2016 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Quarterly Property Casualty Data - Personal Lines

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/16			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	$	258		$	303		$	302		$	236		$	245		$	288		$	285		$	223		$	538		$	508		$	841		$	796		$	1,099		$	1,041
Agency new business written premiums	31			32			34			25			27			30			30			24			59			54			91			84			122			111
Other written premiums	(6		)	(6		)	(6		)	(5		)	(6		)	(6		)	(6		)	(6		)	(11		)	(12		)	(17		)	(18		)	(23		)	(24		)
Net written premiums – statutory*	$	283		$	329		$	330		$	256		$	266		$	312		$	309		$	241		$	586		$	550		$	915		$	862		$	1,198		$	1,128
Unearned premium change	14			(36		)	(42		)	27			14			(35		)	(37		)	27			(15		)	(10		)	(51		)	(45		)	(37		)	(31		)
Earned premiums	$	297		$	293		$	288		$	283		$	280		$	277		$	272		$	268		$	571		$	540		$	864		$	817		$	1,161		$	1,097
Year over year change %
Agency renewal written premiums	5		%	5		%	6		%	6		%	5		%	4		%	3		%	2		%	6		%	3		%	6		%	3		%	6		%	4		%
Agency new business written premiums	15			7			13			4			13			30			25			14			9			20			8			24			10			21
Other written premiums	—			—			—			17			25			14			—			25			8			14			6			14			4			17
Net written premiums – statutory*	6			5			7			6			7			6			5			4			7			5			6			5			6			6
Paid losses and loss expenses
Losses paid	$	186		$	173		$	168		$	151		$	160		$	180		$	165		$	139		$	319		$	304		$	492		$	484		$	678		$	644
Loss expenses paid	23			24			23			24			23			20			22			22			47			44			71			64			93			87
Loss and loss expenses paid	$	209		$	197		$	191		$	175		$	183		$	200		$	187		$	161		$	366		$	348		$	563		$	548		$	771		$	731
Incurred losses and loss expenses
Loss and loss expense incurred	$	226		$	217		$	224		$	173		$	184		$	198		$	216		$	191		$	397		$	407		$	614		$	605		$	840		$	789
Loss and loss expenses paid as a % of incurred	92.5		%	90.8		%	85.3		%	101.2		%	99.5		%	101.0		%	86.6		%	84.3		%	92.2		%	85.5		%	91.7		%	90.6		%	91.8		%	92.6		%
Statutory combined ratio
Loss ratio	67.0		%	65.1		%	68.5		%	56.2		%	57.7		%	62.5		%	71.1		%	61.9		%	62.4		%	66.6		%	63.3		%	65.2		%	64.3		%	63.3		%
Loss adjustment expense ratio	9.1			9.1			9.5			4.7			8.0			9.0			8.5			9.1			7.1			8.8			7.8			8.8			8.1			8.6
Net underwriting expense ratio	29.2			27.1			27.2			31.1			29.4			27.0			26.2			30.4			28.9			28.0			28.2			27.7			28.4			28.1
Statutory combined ratio	105.3		%	101.3		%	105.2		%	92.0		%	95.1		%	98.5		%	105.8		%	101.4		%	98.4		%	103.4		%	99.3		%	101.7		%	100.8		%	100.0		%
Contribution from catastrophe losses	13.6			8.4			12.4			3.0			1.8			5.6			12.6			4.9			7.7			8.8			8.0			7.7			9.4			6.2
Statutory combined ratio excl. catastrophe losses	91.7		%	92.9		%	92.8		%	89.0		%	93.3		%	92.9		%	93.2		%	96.5		%	90.7		%	94.6		%	91.3		%	94.0		%	91.4		%	93.8		%
GAAP combined ratio
GAAP combined ratio	104.4		%	103.4		%	107.5		%	90.1		%	94.0		%	100.9		%	109.2		%	101.4		%	98.9		%	105.3		%	100.4		%	103.8		%	101.4		%	101.3		%
Contribution from catastrophe losses	13.6			8.4			12.4			3.0			1.8			5.6			12.6			4.9			7.7			8.8			8.0			7.7			9.4			6.2
GAAP combined ratio excl. catastrophe losses	90.8		%	95.0		%	95.1		%	87.1		%	92.2		%	95.3		%	96.6		%	96.5		%	91.2		%	96.5		%	92.4		%	96.1		%	92.0		%	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 Fourth-Quarter 2016 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Quarterly Property Casualty Data - Excess & Surplus Lines

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/16			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	$	35		$	35		$	37		$	34		$	31		$	33		$	34		$	30		$	71		$	64		$	106		$	97		$	141		$	128
Agency new business written premiums	12			16			16			13			16			12			15			13			29			28			45			40			57			56
Other written premiums	(2		)	(3		)	(2		)	(2		)	(3		)	(2		)	(3		)	(1		)	(4		)	(4		)	(7		)	(6		)	(9		)	(9		)
Net written premiums – statutory*	$	45		$	48		$	51		$	45		$	44		$	43		$	46		$	42		$	96		$	88		$	144		$	131		$	189		$	175
Unearned premium change	2			—			(6		)	(2		)	—			(1		)	(4		)	(2		)	(8		)	(6		)	(8		)	(7		)	(6		)	(7		)
Earned premiums	$	47		$	48		$	45		$	43		$	44		$	42		$	42		$	40		$	88		$	82		$	136		$	124		$	183		$	168
Year over year change %
Agency renewal written premiums	13		%	6		%	9		%	13		%	11		%	14		%	17		%	20		%	11		%	19		%	9		%	17		%	10		%	15		%
Agency new business written premiums	(25		)	33			7			—			33			(8		)	7			8			4			8			13			3			2			10
Other written premiums	33			(50		)	33			(100		)	(200		)	33			—			50			—			20			(17		)	25			—			—
Net written premiums – statutory*	2			12			11			7			13			10			15			20			9			17			10			15			9			14
Paid losses and loss expenses
Losses paid	$	9		$	7		$	12		$	6		$	6		$	8		$	8		$	5		$	18		$	13		$	25		$	21		$	34		$	27
Loss expenses paid	5			6			5			5			5			4			3			4			10			7			16			11			21			16
Loss and loss expenses paid	$	14		$	13		$	17		$	11		$	11		$	12		$	11		$	9		$	28		$	20		$	41		$	32		$	55		$	43
Incurred losses and loss expenses
Loss and loss expense incurred	$	13		$	15		$	27		$	13		$	8		$	17		$	21		$	24		$	40		$	45		$	55		$	62		$	68		$	70
Loss and loss expenses paid as a % of incurred	107.7		%	86.7		%	63.0		%	84.6		%	137.5		%	70.6		%	52.4		%	37.5		%	70.0		%	44.4		%	74.5		%	51.6		%	80.9		%	61.4		%
Statutory combined ratio
Loss ratio	14.2		%	21.4		%	40.0		%	15.1		%	1.1		%	26.9		%	36.1		%	44.9		%	27.9		%	40.4		%	25.6		%	35.8		%	22.6		%	26.7		%
Loss adjustment expense ratio	15.1			10.5			18.0			16.6			17.8			15.0			13.5			14.5			17.3			14.0			14.9			14.3			15.0			15.2
Net underwriting expense ratio	30.9			30.8			29.9			30.3			31.8			29.4			29.1			29.9			30.1			29.5			30.4			29.5			30.5			30.0
Statutory combined ratio	60.2		%	62.7		%	87.9		%	62.0		%	50.7		%	71.3		%	78.7		%	89.3		%	75.3		%	83.9		%	70.9		%	79.6		%	68.1		%	71.9		%
Contribution from catastrophe losses	2.6			0.2			3.2			0.2			0.1			0.4			0.5			0.9			1.8			0.7			1.2			0.6			1.5			0.4
Statutory combined ratio excl. catastrophe losses	57.6		%	62.5		%	84.7		%	61.8		%	50.6		%	70.9		%	78.2		%	88.4		%	73.5		%	83.2		%	69.7		%	79.0		%	66.6		%	71.5		%
GAAP combined ratio
GAAP combined ratio	58.7		%	61.3		%	87.4		%	61.1		%	48.1		%	69.9		%	76.0		%	88.3		%	74.6		%	82.1		%	69.9		%	77.9		%	67.0		%	70.0		%
Contribution from catastrophe losses	2.6			0.2			3.2			0.2			0.1			0.4			0.5			0.9			1.8			0.7			1.2			0.6			1.5			0.4
GAAP combined ratio excl. catastrophe losses	56.1		%	61.1		%	84.2		%	60.9		%	48.0		%	69.5		%	75.5		%	87.4		%	72.8		%	81.4		%	68.7		%	77.3		%	65.5		%	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 Fourth-Quarter 2016 Supplemental Financial Data



The Cincinnati Life Insurance Company
Statutory Statements of Income

	For the Three Months Ended December 31,										For the Twelve Months Ended December 31,
(Dollars in millions)	2016		2015			Change			% Change		2016			2015			Change			% Change
Net premiums written	$	70	$	65		$	5		8		$	276		$	250		$	26		10
Net investment income	40		39			1			3		159			154			5			3
Amortization of interest maintenance reserve	2		1			1			100		6			4			2			50
Commissions and expense allowances on reinsurance ceded	1		2			(1		)	(50	)	5			6			(1		)	(17	)
Income from fees associated with Separate Accounts	1		2			(1		)	(50	)	5			6			(1		)	(17	)
Total revenues	$	114	$	109		$	5		5		$	451		$	420		$	31		7

Death benefits and matured endowments	$	19	$	32		$	(13	)	(41	)	$	100		$	101		$	(1	)	(1	)
Annuity benefits	21		20			1			5		70			64			6			9
Disability benefits and benefits under accident and health contracts	—		—			—			nm		2			2			—			0
Surrender benefits and group conversions	3		4			(1		)	(25	)	17			17			—			0
Interest and adjustments on deposit-type contract funds	3		2			1			50		9			10			(1		)	(10	)
Increase in aggregate reserves for life and accident and health contracts	45		40			5			13		181			164			17			10
Total benefit expenses	$	91	$	98		$	(7	)	(7	)	$	379		$	358		$	21		6

Commissions	$	11	$	10		$	1		10		$	42		$	38		$	4		11
General insurance expenses and taxes	12		11			1			9		45			42			3			7
Increase in loading on deferred and uncollected premiums	—		1			(1		)	(100	)	(4		)	—			(4		)	nm
Net transfers from Separate Accounts	—		(7		)	7			100		(6		)	(7		)	1			14
Total underwriting expenses	$	23	$	15		$	8		53		$	77		$	73		$	4		5

Federal and foreign income tax benefit	—		(2		)	2			100		(2		)	(6		)	4			67

Net loss from operations before realized capital gains	$	—	$	(2	)	$	2		100		$	(3	)	$	(5	)	$	2		40

Realized gains and losses net of capital gains tax, net	—		(3		)	3			100		5			(6		)	11			nm

Net income (loss) (statutory)	$	—	$	(5	)	$	5		100		$	2		$	(11	)	$	13		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 Fourth-Quarter 2016 Supplemental Financial Data

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