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

Attached files

file	filename
8-K - FORM 8-K - CINCINNATI FINANCIAL CORP	v342204_8k.htm
EX-99.1 - EXHIBIT 99.1 - CINCINNATI FINANCIAL CORP	v342204_ex99-1.htm

Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending March 31, 2013

6200 South Gilmore Road

Fairfield, Ohio 45014-5141

www.cinfin.com

Investor Contact:	Media Contact:	Shareholder Contact:
Dennis E. McDaniel	Joan O. Shevchik	Molly A. Grimm
(513) 870-2768	(513) 603-5323	(513) 870-2697

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

The Cincinnati Insurance Companies
Insurer Financial Strength

Property Casualty Group
Standard Market Subsidiaries:	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 24, 2013, 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.

Cincinnati Financial Corporation

Supplemental Financial Data

First Quarter 2013

	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, 2013	5
CFC Insurance Subsidiaries – Selected Balance Sheet Data	6

Consolidated Property Casualty Insurance Operations
Statutory Statements of Income	7
Consolidated Cincinnati Insurance Companies – Losses Incurred Detail	8
Consolidated Cincinnati Insurance Companies – Loss Ratio Detail	9
Consolidated Cincinnati Insurance Companies – Loss Claim Count Detail	10
Direct Written Premiums by Line of Business and State	11
Quarterly Property Casualty Data – Commercial Lines	12
Quarterly Property Casualty Data – Personal Lines	13
Quarterly Property Casualty Data – Excess & Surplus Lines	13
Loss and Loss Expense Analysis – Three Months Ended March 31, 2013	14

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

Life Insurance Operations
Statutory Statements of Income	19

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

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

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

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

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

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.

Cincinnati Financial Corporation

Quick Reference - First Quarter 2013

(all data shown is for the three months ended or as of March 31, 2013)

	3/31/2013		Year over year change %				3/31/2013			Year over year change %
Revenues:						Benefits and expenses:

Commercial lines net written premiums	$	728		16		Commercial lines loss and loss expenses	$	365			5
Personal lines net written premiums		215		11		Personal lines loss and loss expenses		141			(19	)
Excess & surplus lines net written premiums		27		13		Excess & surplus lines loss and loss expenses		18			6
Property casualty net written premiums		970		15		Life and health contract holders' benefits incurred		44			2
Life and accident and health net written premiums		49		1		Underwriting, acquisition and insurance expenses		300			9
Annuity net written premiums		11		(35	)	Interest expenses		13			(7	)
Life, annuity and accident and health net written premiums		60		(8	)	Other operating expenses		5			25
Commercial lines net earned premiums		631		11		Total benefits & expenses		886			1
Personal lines net earned premiums		231		11		Income before income taxes		217			94
Excess & surplus lines net earned premiums		27		29		Total income tax		63			142
Property casualty net earned premiums		889		11
Fee revenue		-		(100	)	Balance Sheet:
Life and accident and health net earned premiums		42		2
Investment income		128		(2	)	Fixed maturity investments	$	9,169
Realized gains on investments		41		215		Equity securities		3,801
Other revenue		3		0		Other invested assets		67
Total revenues		1,103		12		Total invested assets	$	13,037

						Equity in net assets of subsidiaries	$	5,312

						Loss and loss expense reserves	$	4,240
						Life policy and investment contract reserves		2,310
Income:						Long-term debt and capital lease obligations		831
						Shareholders' equity		5,785
Operating income	$	128		66
Net realized investment gains and losses		26		189		Key ratios:
Net income		154		79
						Commercial lines GAAP combined ratio		90.8	%
						Personal lines GAAP combined ratio		91.6
						Excess & surplus lines GAAP combined ratio		98.0
						Property casualty GAAP combined ratio		91.2
Per share (diluted):
						Commercial lines STAT combined ratio		86.8	%
Operating income	$	0.78		63		Personal lines STAT combined ratio		94.1
Net realized investment gains and losses		0.16		220		Excess & surplus lines STAT combined ratio		98.5
Net income		0.94		77		Property casualty STAT combined ratio		88.9
Book value		35.41		10
Weighted average shares outstanding, in thousands		164,924		1		Value creation ratio		7.0	%

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Three Months Ended March 31, 2013

(In millions)	CFC			CONSOL P&C			CLIC			CFC-I		ELIM			Total
Revenues:
Premiums earned:
Property casualty	$	-		$	937		$	-		$	-	$	-		$	937
Life		-			-			55			-		-			55
Accident health		-			-			1			-		-			1
Premiums ceded		-			(48	)		(14	)		-		-			(62	)
Total earned premium		-			889			42			-		-			931
Investment income		9			84			35			-		-			128
Realized gain on investments		11			30			-			-		-			41
Fee revenue		-			-			1			-		-			1
Other revenue		3			-			-			2		(3	)		2
Total revenues	$	23		$	1,003		$	78		$	2	$	(3	)	$	1,103

Benefits & expenses:
Losses & policy benefits	$	-		$	537		$	64		$	-	$	-		$	601
Reinsurance recoveries		-			(13	)		(20	)		-		-			(33	)
Underwriting, acquisition and insurance expenses		-			287			13			-		-			300
Interest expenses		13			-			-			-		-			13
Other operating expenses		9			-			-			1		(5	)		5
Total expenses	$	22		$	811		$	57		$	1	$	(5	)	$	886

Income before income taxes	$	1		$	192		$	21		$	1	$	2		$	217

Provision (benefit) for income taxes:
Current operating income	$	(4	)	$	43		$	-		$	-	$	-		$	39
Capital gains/losses		4			11			-			-		-			15
Deferred		(1	)		3			7			-		-			9
Total provision (benefit) for income taxes	$	(1	)	$	57		$	7		$	-	$	-		$	63

Operating income	$	-		$	116		$	14		$	1	$	2		$	128

Net income - current year	$	2		$	135		$	14		$	1	$	2		$	154

Net income (loss) - prior year	$	(3	)	$	81		$	7		$	-	$	1		$	86

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

Cincinnati Financial Corporation Insurance Subsidiaries

Selected Balance Sheet Data

(In millions)
	12/31/13	9/30/13	6/30/13	3/31/13		12/31/12		9/30/12		6/30/12		3/31/12
Cincinnati Insurance Consolidated
Fixed maturities (fair value)				$	6,083	$	6,030	$	6,082	$	6,067	$	6,004
Equities (fair value)					2,645		2,393		2,355		2,246		2,264
Fixed maturities - pretax net unrealized gain					532		551		566		502		482
Equities - pretax net unrealized gain					1,019		756		769		669		731
Loss and loss expense reserves - STAT					3,826		3,815		3,938		4,006		3,938
Equity GAAP					5,288		5,056		4,965		4,794		4,864
Surplus - STAT					4,131		3,914		3,815		3,722		3,835

The Cincinnati Life Insurance Company
Fixed maturities (fair value)				$	2,979	$	2,953	$	2,911	$	2,821	$	2,736
Equities (fair value)					18		17		17		17		17
Fixed maturities - pretax net unrealized gain					285		291		289		242		223
Equities - pretax net unrealized gain					8		8		7		7		7
Equity - GAAP					869		857		850		811		792
Surplus - STAT					268		276		277		281		281

Consolidated Cincinnati Insurance Companies

Statutory Statements of Income

	For the Three Months Ended March 31,
(Dollars in millions)	2013		2012			Change			% Change
Underwriting income
Net premiums written	$	970	$	843		$	127			15
Unearned premiums increase		81		45			36			80
Earned premiums	$	889	$	798		$	91			11

Losses incurred	$	435	$	446		$	(11	)		(2	)
Allocated loss expenses incurred		34		45			(11	)		(24	)
Unallocated loss expenses incurred		55		48			7			15
Other underwriting expenses incurred		287		261			26			10
Workers compensation dividend incurred		4		3			1			33

Total underwriting deductions	$	815	$	803		$	12			1
Net underwriting profit (loss)	$	74	$	(5	)	$	79			nm

Investment income
Gross investment income earned	$	87	$	89		$	(2	)		(2	)
Net investment income earned		86		88			(2	)		(2	)
Net realized capital gains (losses)		19		6			13			217
Net investment gains (excl. subs)	$	105	$	94		$	11			12
Dividend from subsidiary		-		-			-			-
Net investment gains (net of tax)	$	105	$	94		$	11			12

Other income	$	-	$	1		$	(1	)		-

Net income before federal income taxes	$	179	$	90		$	89			99
Federal and foreign income taxes incurred	$	42	$	24		$	18			75
Net income (statutory)	$	137	$	66		$	71			108

* 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.

* Excludes CSU Producers Resources Inc.

Consolidated Cincinnati Insurance Companies

Losses Incurred Detail

(In millions)	Three months ended																Six months ended			Nine months ended				Twelve months ended
	12/31/13	9/30/13	6/30/13	3/31/13		12/31/12			9/30/12			6/30/12			3/31/12		6/30/13	6/30/12		9/30/13	9/30/12			12/31/13	12/31/12
Consolidated
New losses greater than $4,000,000				$	34	$	32		$	21		$	4		$	10		$	15		$	36			$	68
New losses $1,000,000-$4,000,000					35		44			39			47			31			78			117				161
New losses $250,000-$1,000,000					56		53			50			58			43			102			152				205
Case reserve development above $250,000					48		68			60			55			67			122			182				250
Large losses subtotal				$	173	$	197		$	170		$	164		$	151		$	317		$	487			$	684
IBNR incurred					28		(22	)		(25	)		7			19			26			2				(20	)
Catastrophe losses incurred					10		26			62			146			89			233			295				321
Remaining incurred					224		152			242			234			187			421			662				814
Total losses incurred				$	435	$	353		$	449		$	551		$	446		$	997		$	1,446			$	1,799
Commercial Lines
New losses greater than $4,000,000				$	34	$	32		$	21		$	4		$	10		$	15		$	36			$	68
New losses $1,000,000-$4,000,000					30		36			30			33			24			56			86				122
New losses $250,000-$1,000,000					41		37			33			36			31			68			101				138
Case reserve development above $250,000					42		63			56			51			64			115			171				234
Large losses subtotal				$	147	$	168		$	140		$	124		$	129		$	254		$	394			$	562
IBNR incurred					23		1			(21	)		6			-			6			(14	)			(13	)
Catastrophe losses incurred					2		17			43			89			39			127			170				187
Remaining incurred					127		65			138			132			105			237			374				439
Total losses incurred				$	299	$	251		$	300		$	351		$	273		$	624		$	924			$	1,175
Personal Lines
New losses greater than $4,000,000				$	-	$	-		$	-		$	-		$	-		$	-		$	-			$	-
New losses $1,000,000-$4,000,000					4		8			9			13			5			18			27				35
New losses $250,000-$1,000,000					12		13			14			18			8			26			40				53
Case reserve development above $250,000					6		4			1			3			2			5			6				10
Large losses subtotal				$	22	$	25		$	24		$	34		$	15		$	49		$	73			$	98
IBNR incurred					-		(24	)		(10	)		(4	)		14			11			-				(24	)
Catastrophe losses incurred					8		9			18			56			49			105			123				132
Remaining incurred					94		87			101			100			81			181			283				370
Total losses incurred				$	124	$	97		$	133		$	186		$	159		$	346		$	479			$	576
Excess & Surplus Lines
New losses greater than $4,000,000				$	-	$	-		$	-		$	-		$	-		$	-		$	-			$	-
New losses $1,000,000-$4,000,000					1		-			1			1			2			3			4				4
New losses $250,000-$1,000,000					3		3			3			4			4			8			11				14
Case reserve development above $250,000					-		1			2			1			1			3			5				6
Large losses subtotal				$	4	$	4		$	6		$	6		$	7		$	14		$	20			$	24
IBNR incurred					5		1			6			5			5			9			16				17
Catastrophe losses incurred					-		-			-			1			1			2			2				2
Remaining incurred					3		-			3			2			1			3			5				5
Total losses incurred				$	12	$	5		$	15		$	14		$	14		$	28		$	43			$	48

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

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

Consolidated Cincinnati Insurance Companies

Loss Ratio Detail

	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/13	9/30/13	6/30/13	3/31/13			12/31/12			9/30/12			6/30/12			3/31/12			6/30/13	6/30/12			9/30/13	9/30/12			12/31/13	12/31/12
Consolidated
New losses greater than $4,000,000					3.8	%		3.7	%		2.5	%		0.5	%		1.3	%			0.9	%			1.4	%			2.0	%
New losses $1,000,000-$4,000,000					3.9			5.0			4.6			5.7			3.9				4.8				4.7				4.8
New losses $250,000-$1,000,000					6.3			6.1			5.9			7.1			5.5				6.2				6.2				6.1
Case reserve development above $250,000					5.4			7.8			7.0			6.7			8.3				7.5				7.4				7.5
Large losses subtotal					19.4	%		22.6	%		20.0	%		20.0	%		19.0	%			19.4	%			19.7	%			20.4	%
IBNR incurred					3.2			(2.4	)		(2.9	)		0.9			2.3				1.6				0.1				(0.6	)
Total catastrophe losses incurred					1.1			2.9			7.3			17.6			11.1				14.5				11.9				9.6
Remaining incurred					25.2			17.5			28.4			28.2			23.5				25.9				26.7				24.4
Total loss ratio					48.9	%		40.6	%		52.8	%		66.7	%		55.9	%			61.4	%			58.4	%			53.8	%
Commercial Lines
New losses greater than $4,000,000					5.4	%		5.3	%		3.4	%		0.7	%		1.9	%			1.3	%			2.0	%			2.9	%
New losses $1,000,000-$4,000,000					4.7			5.7			4.9			5.5			4.2				4.9				4.9				5.1
New losses $250,000-$1,000,000					6.5			5.9			5.5			6.2			5.5				5.9				5.8				5.8
Case reserve development above $250,000					6.7			10.1			9.3			8.7			11.2				9.9				9.7				9.8
Large losses subtotal					23.3	%		27.0	%		23.1	%		21.1	%		22.8	%			22.0	%			22.4	%			23.6	%
IBNR incurred					3.7			0.3			(3.4	)		1.1			0.0				0.5				(0.8	)			(0.5	)
Total catastrophe losses incurred					0.3			2.7			7.1			15.1			6.8				11.0				9.6				7.8
Remaining incurred					20.0			10.5			22.7			22.3			18.4				20.5				21.2				18.4
Total loss ratio					47.3	%		40.5	%		49.5	%		59.6	%		48.0	%			54.0	%			52.4	%			49.3	%
Personal Lines
New losses greater than $4,000,000					0.0	%		0.0	%		0.0	%		0.0	%		0.0	%			0.0	%			0.0	%			0.0	%
New losses $1,000,000-$4,000,000					1.6			3.8			3.7			6.4			2.3				4.4				4.1				4.1
New losses $250,000-$1,000,000					5.4			5.9			6.1			8.4			4.0				6.2				6.2				6.1
Case reserve development above $250,000					2.4			2.1			0.5			1.2			0.9				1.1				0.9				1.2
Large losses subtotal					9.4	%		11.8	%		10.3	%		16.0	%		7.2	%			11.7	%			11.2	%			11.4	%
IBNR incurred					0.2			(10.8	)		(4.6	)		(1.6	)		6.6				2.5				0.1				(2.8	)
Total catastrophe losses incurred					3.3			3.5			8.8			26.2			23.3				24.8				19.3				15.2
Remaining incurred					40.7			38.8			46.2			46.6			39.1				42.8				44.0				42.6
Total loss ratio					53.6	%		43.3	%		60.7	%		87.2	%		76.2	%			81.8	%			74.6	%			66.4	%
Excess & Surplus Lines
New losses greater than $4,000,000					0.0	%		0.0	%		0.0	%		0.0	%		0.0	%			0.0	%			0.0	%			0.0	%
New losses $1,000,000-$4,000,000					4.2			0.0			4.3			4.4			11.1				7.7				6.5				4.7
New losses $250,000-$1,000,000					11.1			11.1			15.0			16.5			17.7				17.1				16.3				14.9
Case reserve development above $250,000					1.0			2.7			8.8			6.4			5.6				6.0				7.0				5.9
Large losses subtotal					16.3	%		13.8	%		28.1	%		27.3	%		34.4	%			30.8	%			29.8	%			25.5	%
IBNR incurred					17.0			6.0			25.9			21.0			22.2				21.6				23.2				18.5
Total catastrophe losses incurred					0.4			1.2			0.5			3.4			3.7				3.5				2.4				2.1
Remaining incurred					13.5			(1.5	)		10.0			8.1			5.4				6.8				7.9				5.4
Total loss ratio					47.2	%		19.5	%		64.5	%		59.8	%		65.7	%			62.7	%			63.3	%			51.5	%

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

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

Consolidated Cincinnati Insurance Companies

Loss Claim Count Detail

	Three months ended													Six months ended			Nine months ended			Twelve months ended
	12/31/13	9/30/13	6/30/13	3/31/13		12/31/12		9/30/12		6/30/12		3/31/12		6/30/13	6/30/12		9/30/13	9/30/12		12/31/13	12/31/12
Consolidated
New losses greater than $4,000,000					5		6		4		1		2			3			7			13
New losses $1,000,000-$4,000,000					21		28		27		29		19			48			75			103
New losses $250,000-$1,000,000					116		118		116		130		101			231			347			465
Case reserve development above $250,000					69		99		86		78		86			164			250			349
Large losses total					211		251		233		238		208			446			679			930
Commercial Lines
New losses greater than $4,000,000					5		6		4		1		2			3			7			13
New losses $1,000,000-$4,000,000					17		22		21		18		15			33			54			76
New losses $250,000-$1,000,000					86		82		78		77		70			147			225			307
Case reserve development above $250,000					56		86		79		64		81			145			224			310
Large losses total					164		196		182		160		168			328			510			706
Personal Lines
New losses greater than $4,000,000					-		-		-		-		-			-			-			-
New losses $1,000,000-$4,000,000					3		6		5		10		2			12			17			23
New losses $250,000-$1,000,000					24		29		31		44		21			65			96			125
Case reserve development above $250,000					12		11		3		8		4			12			15			26
Large losses total					39		46		39		62		27			89			128			174
Excess & Surplus Lines
New losses greater than $4,000,000					-		-		-		-		-			-			-			-
New losses $1,000,000-$4,000,000					1		-		1		1		2			3			4			4
New losses $250,000-$1,000,000					6		7		7		9		10			19			26			33
Case reserve development above $250,000					1		2		4		6		1			7			11			13
Large losses total					8		9		12		16		13			29			41			50

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

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

Consolidated Cincinnati Insurance Companies

Agency Direct Written Premiums by Agency State by Line of Business for the Three Months Ended March 31, 2013

(Dollars in millions)	Commercial Lines														Personal Lines						E & S		Consolidated				Comm'l			Personal			E & S			Consol
Risk	Comm		Comm		Comm		Workers'		Spec		Surety &		Mach. &		Personal		Home		Other		All		2013		2012		Change			Change			Change			Change
State	Casualty		Property		Auto		Comp		Packages		Exec Risk		Equipment		Auto		Owner		Personal		Lines		Total		Total		%			%			%			%

OH	$	40.3	$	29.2	$	19.4	$	-	$	3.8	$	5.5	$	1.7	$	27.1	$	22.5	$	7.9	$	3.0	$	160.3	$	146.8		10.4			5.9			13.5			8.8
IL		15.9		12.4		8.0		15.7		3.5		1.8		0.8		7.2		6.0		2.1		2.0		75.3		69.0		9.1			8.8			15.8			9.2
IN		15.3		12.0		8.6		10.0		2.2		1.4		1.0		7.4		7.4		2.0		2.7		69.9		63.8		11.6			8.3			7.8			10.7
PA		14.2		10.5		11.0		16.5		2.3		1.6		0.6		2.7		2.0		0.9		1.0		63.4		56.7		10.8			24.3			7.9			11.8
GA		8.4		7.3		6.3		3.9		2.0		1.3		0.4		8.6		8.7		2.5		2.1		51.7		45.7		15.6			7.6			37.7			13.1
MI		10.2		7.4		5.2		6.3		2.6		1.5		0.6		7.4		5.4		1.0		1.5		49.0		39.9		19.1			33.1			25.6			22.9
NC		9.1		8.4		5.3		6.0		4.2		1.5		0.6		5.9		4.4		1.6		1.0		48.0		43.5		6.1			21.8			46.1			10.2
WI		8.8		6.1		4.2		11.8		1.0		0.9		0.6		1.8		1.9		0.8		0.6		38.4		33.3		17.5			1.9			0.5			15.2
TN		8.3		7.3		5.0		3.9		3.2		1.0		0.5		3.6		3.8		1.2		0.5		38.3		31.3		23.5			20.0			7.6			22.5
VA		8.5		7.3		5.5		6.3		1.3		1.7		0.4		2.3		2.0		0.7		1.0		37.1		32.1		18.9			4.0			(6.0	)		15.8
KY		6.6		6.7		5.1		1.0		1.8		0.9		0.3		5.8		5.2		1.3		1.0		36.0		32.7		9.4			8.9			37.0			9.9
AL		5.4		6.7		2.5		0.3		2.5		0.8		0.4		4.3		6.8		1.5		0.9		32.0		29.0		13.2			6.3			17.2			10.5
MO		7.4		6.5		3.7		4.4		2.1		0.5		0.4		1.2		1.7		0.4		1.2		29.5		22.5		36.7			14.1			(6.1	)		31.3
MN		8.2		5.5		3.0		3.2		0.9		0.6		0.4		3.1		3.0		0.7		0.8		29.4		23.1		26.0			36.5			7.1			27.6
TX		8.9		5.8		6.3		0.6		0.3		0.3		0.5		-		-		-		2.1		25.0		17.1		47.4			nm			32.4			46.2
IA		6.0		4.5		2.6		5.5		1.0		0.7		0.3		1.0		1.1		0.4		0.4		23.6		20.3		19.0			4.3			(23.7	)		16.1
FL		5.0		4.5		1.6		0.4		0.2		0.5		0.1		1.9		2.9		0.5		0.7		18.3		20.7		(15.1	)		(2.9	)		(5.8	)		(11.5	)
MD		4.6		2.5		3.5		3.3		0.4		0.6		0.2		1.0		0.9		0.3		0.4		17.6		14.2		20.9			53.2			8.8			23.8
NY		7.9		3.2		2.9		0.7		0.4		0.8		0.2		0.3		0.1		-		0.4		16.8		14.5		13.4			nm			26.0			15.8
KS		3.3		3.2		1.8		2.9		0.9		0.4		0.2		1.1		1.4		0.3		0.3		15.8		14.1		15.6			8.8			(35.5	)		12.6
AR		2.3		3.5		2.0		0.8		1.6		0.2		0.2		1.6		1.7		0.5		0.4		14.8		14.1		(1.5	)		38.3			(26.4	)		5.1
AZ		3.7		2.3		2.5		1.2		0.3		0.4		0.2		0.9		0.6		0.2		0.4		12.6		9.7		32.0			30.9			(10.4	)		29.9
SC		2.9		2.2		2.0		1.1		0.7		0.4		0.1		1.3		0.9		0.3		0.3		12.3		9.6		20.3			72.1			39.6			28.6
UT		3.6		1.9		2.4		-		0.3		0.5		0.1		1.8		0.8		0.2		0.4		11.9		10.2		17.0			16.8			18.9			17.0
NE		2.3		2.5		1.1		1.9		0.5		0.4		0.2		0.2		0.2		0.1		0.4		9.7		7.8		28.6			2.8			(22.8	)		24.0
MT		4.0		1.8		1.9		-		0.3		0.1		0.1		0.6		0.5		0.1		0.1		9.5		8.0		16.9			31.7			41.3			18.8
ID		2.8		1.7		1.8		0.1		0.3		0.3		0.1		0.5		0.3		0.1		0.1		8.2		8.0		0.4			17.7			31.6			2.6
WV		2.4		1.7		1.7		0.5		0.7		0.2		0.1		-		0.1		-		0.5		8.0		6.7		21.0			(13.9	)		15.3			19.8
VT		1.3		1.2		0.8		2.4		0.3		0.3		0.1		0.3		0.3		0.1		0.2		7.2		6.1		18.1			23.4			(18.6	)		17.1
ND		2.9		1.6		1.4		-		0.3		0.3		0.1		0.2		0.2		-		-		7.0		5.3		33.7			4.2			(35.6	)		31.0
CO		2.3		1.7		1.6		0.2		-		0.2		0.1		-		-		-		0.5		6.7		4.3		58.6			0.5			47.4			57.2
NH		0.8		0.8		0.4		0.9		0.1		0.1		0.1		0.4		0.3		0.1		0.2		4.3		3.6		16.6			25.0			9.1			17.7
WA		1.4		0.8		1.1		-		-		0.3		0.1		-		-		-		0.2		3.8		2.9		31.1			nm			44.8			31.9
SD		0.9		0.7		0.5		0.9		0.2		-		0.1		-		-		-		0.1		3.5		3.6		(4.7	)		nm			38.9			(3.3	)
NM		1.2		0.7		0.8		0.2		-		0.3		-		-		-		-		0.1		3.3		2.6		25.0			nm			(2.9	)		23.9
OR		0.9		0.6		0.5		-		-		0.2		0.1		0.1		-		-		0.5		3.0		1.7		69.9			nm			45.3			75.4
DE		0.6		0.4		0.4		0.4		0.1		0.1		-		-		-		-		-		2.1		2.2		(8.7	)		52.2			227.7			(7.8	)
CT		0.4		0.3		0.2		0.2		-		-		-		-		-		-		0.1		1.3		0.6		134.5			(4.8	)		78.6			125.5
WY		0.5		0.4		0.2		-		-		-		-		-		-		-		-		1.1		0.7		65.6			3.1			(0.5	)		60.6
All Other		1.2		0.6		0.8		1.6		-		0.6		-		-		-		-		0.2		5.1		4.4		15.2			(20.1	)		25.8			15.5
Total	$	240.6	$	184.6	$	135.7	$	115.1	$	42.5	$	28.9	$	12.0	$	101.4	$	93.5	$	28.0	$	28.5	$	1,010.9	$	882.3		15.3			12.4			12.4			14.6
Other Direct		-		0.3		1.0		1.0		-		-		-		1.8		0.1		-		-		4.2		1.2		101.1			nm			nm			256.7
Total Direct	$	240.6	$	184.9	$	136.7	$	116.1	$	42.5	$	28.9	$	12.0	$	103.2	$	93.6	$	28.0	$	28.5	$	1,015.1	$	883.5		15.5			13.3			12.4			14.9

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

Quarterly Property Casualty Data - Commercial Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/13	9/30/13	6/30/13	3/31/13			12/31/12			9/30/12			6/30/12			3/31/12			6/30/13	6/30/12			9/30/13	9/30/12			12/31/13	12/31/12
Commercial casualty:
Written premiums				$	237		$	189		$	200		$	202		$	202			$	404			$	604			$	793
Earned premiums					204			198			197			191			181				372				569				767
Current accident year before catastrophe losses					60.8	%		67.5	%		52.1	%		67.2	%		70.2	%			68.7	%			63.0	%			64.1	%
Current accident year catastrophe losses					-			-			-			-			-				-				-				-
Prior accident years before catastrophe losses					(11.5	)		(24.0	)		(12.9	)		(29.2	)		(26.7	)			(28.0	)			(22.8	)			(23.1	)
Prior accident years catastrophe losses					-			-			-			-			-				-				-				-
Total loss and loss expense ratio					49.3	%		43.5	%		39.2	%		38.0	%		43.5	%			40.7	%			40.2	%			41.0	%
Commercial property:
Written premiums				$	166		$	136		$	150		$	146		$	141			$	287			$	437			$	573
Earned premiums					147			142			138			134			131				265				403				545
Current accident year before catastrophe losses					48.9	%		28.0	%		45.3	%		55.3	%		57.2	%			56.2	%			52.5	%			46.1	%
Current accident year catastrophe losses					2.8			10.4			29.6			56.7			31.4				44.3				39.2				31.7
Prior accident years before catastrophe losses					2.0			(2.3	)		(2.1	)		(3.4	)		(4.4	)			(4.0	)			(3.3	)			(3.1	)
Prior accident years catastrophe losses					(1.9	)		(2.1	)		(0.7	)		1.3			(5.8	)			(2.2	)			(1.7	)			(1.8	)
Total loss and loss expense ratio					51.8	%		34.0	%		72.1	%		109.9	%		78.4	%			94.3	%			86.7	%			72.9	%
Commercial auto:
Written premiums				$	135		$	106		$	109		$	115		$	114			$	229			$	338			$	444
Earned premiums					114			111			108			106			101				207				315				426
Current accident year before catastrophe losses					59.6	%		66.2	%		71.1	%		71.8	%		73.9	%			72.8	%			72.2	%			70.7	%
Current accident year catastrophe losses					0.4			(0.2	)		0.8			3.2			1.4				2.4				1.8				1.3
Prior accident years before catastrophe losses					2.1			7.3			4.9			(1.8	)		(11.9	)			(6.8	)			(2.7	)			(0.1	)
Prior accident years catastrophe losses					(0.2	)		-			(0.2	)		(0.3	)		(0.5	)			(0.4	)			(0.3	)			(0.2	)
Total loss and loss expense ratio					61.9	%		73.3	%		76.6	%		72.9	%		62.9	%			68.0	%			71.0	%			71.7	%
Workers' compensation:
Written premiums				$	113		$	84		$	78		$	86		$	93			$	179			$	257			$	341
Earned premiums					88			89			89			85			81				166				255				344
Current accident year before catastrophe losses					71.8	%		87.6	%		80.8	%		80.8	%		82.7	%			81.7	%			81.5	%			83.0	%
Current accident year catastrophe losses					-			-			-			-			-				-				-				-
Prior accident years before catastrophe losses					(8.0	)		(26.2	)		(25.7	)		(14.3	)		(19.0	)			(16.6	)			(19.8	)			(21.5	)
Prior accident years catastrophe losses					-			-			-			-			-				-				-				-
Total loss and loss expense ratio					63.8	%		61.4	%		55.1	%		66.5	%		63.7	%			65.1	%			61.7	%			61.5	%
Specialty package:
Written premiums				$	40		$	36		$	39		$	38		$	40			$	78			$	117			$	153
Earned premiums					39			39			37			37			38				75				112				151
Current accident year before catastrophe losses					73.5	%		57.5	%		56.7	%		72.8	%		66.4	%			69.6	%			65.3	%			63.4	%
Current accident year catastrophe losses					6.4			10.1			29.3			23.9			24.8				24.4				26.0				22.0
Prior accident years before catastrophe losses					(2.5	)		(8.7	)		9.1			(3.0	)		(14.0	)			(8.5	)			(2.7	)			(4.2	)
Prior accident years catastrophe losses					(3.4	)		9.3			(14.8	)		(0.2	)		(12.6	)			(6.5	)			(9.2	)			(4.5	)
Total loss and loss expense ratio					74.0	%		68.2	%		80.3	%		93.5	%		64.6	%			79.0	%			79.4	%			76.7	%
Surety and executive risk:
Written premiums				$	26		$	27		$	31		$	29		$	27			$	56			$	87			$	114
Earned premiums					29			29			28			27			27				54				82				111
Current accident year before catastrophe losses					44.5	%		57.7	%		60.4	%		72.1	%		49.2	%			60.9	%			60.7	%			59.9	%
Current accident year catastrophe losses					-			-			-			-			-				-				-				-
Prior accident years before catastrophe losses					60.8			(23.9	)		(17.2	)		10.3			34.8				22.3				8.9				0.4
Prior accident years catastrophe losses					-			-			-			-			-				-				-				-
Total loss and loss expense ratio					105.3	%		33.8	%		43.2	%		82.4	%		84.0	%			83.2	%			69.6	%			60.3	%
Machinery and equipment:
Written premiums				$	11		$	10		$	12		$	10		$	9			$	19			$	31			$	41
Earned premiums					10			10			10			10			9				19				29				39
Current accident year before catastrophe losses					15.0	%		11.5	%		19.9	%		23.8	%		36.0	%			29.8	%			26.4	%			22.5	%
Current accident year catastrophe losses					-			-			-			-			-				-				-				-
Prior accident years before catastrophe losses					8.0			(4.1	)		(3.9	)		(2.5	)		3.2				0.4				(1.1	)			(1.9	)
Prior accident years catastrophe losses					-			-			-			-			-				-				-				-
Total loss and loss expense ratio					23.0	%		7.4	%		16.0	%		21.3	%		39.2	%			30.2	%			25.3	%			20.6	%

*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.

Quarterly Property Casualty Data - Personal Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/13	9/30/13	6/30/13	3/31/13			12/31/12			9/30/12			6/30/12			3/31/12			6/30/13	6/30/12			9/30/13	9/30/12			12/31/13	12/31/12

Personal auto:
Written premiums				$	100		$	102		$	117		$	115		$	91			$	206			$	323			$	425
Earned premiums					107			105			101			100			98				198				299				404
Current accident year before catastrophe losses					66.9	%		71.6	%		68.2	%		78.0	%		73.5	%			75.8	%			73.2	%			72.8	%
Current accident year catastrophe losses					1.4			(0.3	)		(3.1	)		9.7			5.1				7.4				3.9				2.8
Prior accident years before catastrophe losses					7.9			1.4			(5.2	)		(4.7	)		(8.1	)			(6.4	)			(6.0	)			(4.1	)
Prior accident years catastrophe losses					(0.3	)		(0.1	)		(0.3	)		(0.7	)		(0.8	)			(0.8	)			(0.6	)			(0.5	)
Total loss and loss expense ratio					75.9	%		72.6	%		59.6	%		82.3	%		69.7	%			76.0	%			70.5	%			71.0	%

Homeowner:
Written premiums				$	89		$	93		$	105		$	103		$	77			$	180			$	285			$	378
Earned premiums					96			92			90			87			84				171				261				353
Current accident year before catastrophe losses					40.6	%		52.1	%		80.7	%		74.0	%		63.0	%			68.6	%			72.8	%			67.4	%
Current accident year catastrophe losses					9.4			10.4			28.1			59.2			60.4				59.8				48.9				38.8
Prior accident years before catastrophe losses					(0.7	)		(17.3	)		(11.9	)		(6.0	)		(2.9	)			(4.5	)			(7.1	)			(9.7	)
Prior accident years catastrophe losses					(2.4	)		(0.4	)		(4.9	)		(5.7	)		(9.8	)			(7.7	)			(6.8	)			(5.1	)
Total loss and loss expense ratio					46.9	%		44.8	%		92.0	%		121.5	%		110.7	%			116.2	%			107.8	%			91.4	%

Other personal:
Written premiums				$	26		$	27		$	31		$	32		$	25			$	57			$	88			$	115
Earned premiums					28			29			28			27			27				54				82				111
Current accident year before catastrophe losses					56.7			38.6	%		46.2	%		68.6	%		63.1	%			65.9	%			59.2	%			53.8	%
Current accident year catastrophe losses					1.5			4.5			18.4			6.0			11.7				8.8				12.1				10.1
Prior accident years before catastrophe losses					(1.5	)		(46.1	)		(30.4	)		6.2			(22.1	)			(7.8	)			(15.5	)			(23.5	)
Prior accident years catastrophe losses					(1.2	)		(0.2	)		(1.2	)		(1.2	)		(3.1	)			(2.1	)			(1.8	)			(1.4	)
Total loss and loss expense ratio					55.5	%		(3.2	)%		33.0	%		79.6	%		49.6	%			64.8	%			54.0	%			39.0	%

Quarterly Property Casualty Data - Excess & Surplus Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/13	9/30/13	6/30/13	3/31/13			12/31/12			9/30/12			6/30/12			3/31/12			6/30/13	6/30/12			9/30/13	9/30/12			12/31/13	12/31/12

Excess & Surplus:
Written premiums				$	27		$	27		$	27		$	27		$	24			$	51			$	78			$	105
Earned premiums					27			25			25			22			21				43				68				93
Current accident year before catastrophe losses					73.6	%		52.3	%		87.5	%		74.6	%		78.3	%			76.4	%			80.4	%			72.8	%
Current accident year catastrophe losses					0.1			1.4			1.4			3.2			2.4				2.8				2.3				2.1
Prior accident years before catastrophe losses					(8.8	)		(15.3	)		(6.0	)		0.7			(0.4	)			0.2				(2.0	)			(5.6	)
Prior accident years catastrophe losses					0.3			(0.2	)		(0.7	)		0.3			1.3				0.7				0.2				0.1
Total loss and loss expense ratio					65.2	%		38.2	%		82.2	%		78.8	%		81.6	%			80.1	%			80.9	%			69.4	%

Cincinnati Insurance Companies Consolidated
Loss and Loss Expense Analysis

(In millions)													Change in			Total
			Paid				Change in			Change in			loss			change									Loss
	Paid		loss		Total		case			IBNR			expense			in			Case			IBNR			expense		Total
	losses		expense		paid		reserves			reserves			reserves			reserves			incurred			incurred			incurred		incurred
Gross loss and loss expense incurred for the three months ended March 31, 2013
Commercial casualty	$	70	$	30	$	100	$	(9	)	$	17		$	(1	)	$	7		$	61		$	17		$	29	$	107
Commercial property		81		8		89		(8	)		(3	)		-			(11	)		73			(3	)		8		78
Commercial auto		66		10		76		(8	)		2			1			(5	)		58			2			11		71
Workers' compensation		53		12		65		(12	)		3			-			(9	)		41			3			12		56
Specialty packages		30		5		35		(4	)		-			(1	)		(5	)		26			-			4		30
Surety and executive risk		10		4		14		19			1			-			20			29			1			4		34
Machinery and equipment		3		-		3		(1	)		-			-			(1	)		2			-			-		2
Total commercial lines		313		69		382		(23	)		20			(1	)		(4	)		290			20			68		378

Personal auto		65		12		77		2			-			2			4			67			-			14		81
Homeowners		48		6		54		(6	)		-			(3	)		(9	)		42			-			3		45
Other personal		10		1		11		5			-			-			5			15			-			1		16
Total personal lines		123		19		142		1			-			(1	)		-			124			-			18		142

Commercial casualty & property		6		2		8		2			5			2			9			8			5			4		17
Total excess & surplus lines		6		2		8		2			5			2			9			8			5			4		17
Total property casualty	$	442	$	90	$	532	$	(20	)	$	25		$	-		$	5		$	422		$	25		$	90	$	537

Ceded loss and loss expense incurred for the three months ended March 31, 2013
Commercial casualty	$	5	$	1	$	6	$	(1	)	$	1		$	-		$	-		$	4		$	1		$	1	$	6
Commercial property		2		-		2		1			(1	)		-			-			3			(1	)		-		2
Commercial auto		-		-		-		1			-			-			1			1			-			-		1
Workers' compensation		3		-		3		(4	)		-			-			(4	)		(1	)		-			-		(1	)
Specialty packages		5		-		5		(4	)		-			-			(4	)		1			-			-		1
Surety and executive risk		1		-		1		3			-			-			3			4			-			-		4
Machinery and equipment		-		-		-		-			-			-			-			-			-			-		-
Total commercial lines		16		1		17		(4	)		-			-			(4	)		12			-			1		13

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

Commercial casualty & property		1		-		1		(1	)					-			(1	)		-			-			-		-
Total excess & surplus lines		1		-		1		(1	)		-			-			(1	)		-			-			-		-
Total property casualty	$	18	$	1	$	19	$	(5	)	$	(1	)	$	-		$	(6	)	$	13		$	(1	)	$	1	$	13

Net loss and loss expense incurred for the three months ended March 31, 2013
Commercial casualty	$	65	$	29	$	94	$	(8	)	$	16		$	(1	)	$	7		$	57		$	16		$	28	$	101
Commercial property		79		8		87		(9	)		(2	)		-			(11	)		70			(2	)		8		76
Commercial auto		66		10		76		(9	)		2			1			(6	)		57			2			11		70
Workers' compensation		50		12		62		(8	)		3			-			(5	)		42			3			12		57
Specialty packages		25		5		30		-			-			(1	)		(1	)		25			-			4		29
Surety and executive risk		9		4		13		16			1			-			17			25			1			4		30
Machinery and equipment		3		-		3		(1	)		-			-			(1	)		2			-			-		2
Total commercial lines		297		68		365		(19	)		20			(1	)		-			278			20			67		365

Personal auto		65		12		77		2			-			2			4			67			-			14		81
Homeowners		47		6		53		(6	)		1			(3	)		(8	)		41			1			3		45
Other personal		10		1		11		5			-			-			5			15			-			1		16
Total personal lines		122		19		141		1			1			(1	)		1			123			1			18		142

Commercial casualty & property		5		2		7		3			5			2			10			8			5			4		17
Total excess & surplus lines		5		2		7		3			5			2			10			8			5			4		17
Total property casualty	$	424	$	89	$	513	$	(15	)	$	26		$	-		$	11		$	409		$	26		$	89	$	524

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Consolidated

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/13	9/30/13	6/30/13	3/31/13			12/31/12			9/30/12			6/30/12			3/31/12			6/30/13	6/30/12			9/30/13	9/30/12			12/31/13	12/31/12
Premiums
Agency renewal written premiums				$	845		$	771		$	807		$	798		$	762			$	1,560			$	2,367			$	3,138
Agency new business written premiums					135			132			130			131			108				239				369				501
Other written premiums					(10	)		(66	)		(38	)		(26	)		(27	)			(53	)			(91	)			(157	)
Reported written premiums – statutory*				$	970		$	837		$	899		$	903		$	843			$	1,746			$	2,645			$	3,482
Unearned premium change					(81	)		32			(48	)		(77	)		(45	)			(122	)			(170	)			(138	)
Earned premiums				$	889		$	869		$	851		$	826		$	798			$	1,624			$	2,475			$	3,344
Year over year change %
Agency renewal written premiums					11	%		8	%		11	%		11	%		8	%			9	%			10	%			9	%
Agency new business written premiums					25			28			13			12			6				9				10				15
Other written premiums					63			(20	)		30			61			13				45				40				24
Reported written premiums – statutory*					15			10			14			18			8				13				13				12
Paid losses and loss expenses
Losses paid				$	424		$	459		$	507		$	475		$	415			$	890			$	1,399			$	1,858
Loss expenses paid					89			96			88			97			90				189				275				371
Loss and loss expenses paid				$	513		$	555		$	595		$	572		$	505			$	1,079			$	1,674			$	2,229
Statutory combined ratio
Loss ratio					48.9	%		40.6	%		52.8	%		66.7	%		55.9	%			61.4	%			58.4	%			53.8	%
Allocated loss expense ratio					3.9			3.4			3.7			4.5			5.5				5.0				4.6				4.3
Unallocated loss expense ratio					6.2			5.9			5.2			6.3			6.1				6.3				5.9				5.8
Net underwriting expense ratio					29.9			33.0			31.8			30.2			31.3				30.7				31.1				31.5
Statutory combined ratio					88.9	%		82.9	%		93.5	%		107.7	%		98.8	%			103.4	%			100.0	%			95.4	%
Contribution from catastrophe losses					1.2			3.4			8.0			17.8			11.1				14.6				12.3				10.0
Statutory combined ratio excluding catastrophe losses					87.7	%		79.5	%		85.5	%		89.9	%		87.7	%			88.8	%			87.7	%			85.4	%
Commission expense ratio					17.9	%		20.4	%		18.4	%		18.1	%		18.9	%			18.5	%			18.5	%			18.9	%
Other expense ratio					12.0			12.6			13.4			12.1			12.4				12.2				12.6				12.6
Statutory expense ratio					29.9	%		33.0	%		31.8	%		30.2	%		31.3	%			30.7	%			31.1	%			31.5	%
GAAP combined ratio
GAAP combined ratio					91.2	%		81.9	%		94.8	%		109.5	%		99.1	%			104.4	%			101.1	%			96.1	%
Contribution from catastrophe losses					1.2			3.4			8.0			17.8			11.1				14.6				12.3				10.0
GAAP combined ratio excluding catastrophe losses					90.0	%		78.5	%		86.8	%		91.7	%		88.0	%			89.8	%			88.8	%			86.1	%

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.

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
	12/31/13	9/30/13	6/30/13	3/31/13			12/31/12			9/30/12			6/30/12			3/31/12			6/30/13	6/30/12			9/30/13	9/30/12			12/31/13	12/31/12
Premiums
Agency renewal written premiums				$	631		$	549		$	557		$	552		$	571			$	1,123			$	1,680			$	2,229
Agency new business written premiums					97			96			90			91			75				166				256				352
Other written premiums					-			(57	)		(28	)		(17	)		(20	)			(37	)			(65	)			(122	)
Reported written premiums – statutory*				$	728		$	588		$	619		$	626		$	626			$	1,252			$	1,871			$	2,459
Unearned premium change					(97	)		30			(12	)		(36	)		(58	)			(94	)			(106	)			(76	)
Earned premiums				$	631		$	618		$	607		$	590		$	568			$	1,158			$	1,765			$	2,383
Year over year change %
Agency renewal written premiums					11	%		7	%		10	%		10	%		5	%			8	%			8	%			8	%
Agency new business written premiums					29			30			11			12			6				9				10				15
Other written premiums					100			(36	)		32			61			20				46				41				20
Reported written premiums – statutory*					16			8			13			17			6				11				12				11
Paid losses and loss expenses
Losses paid				$	297		$	321		$	331		$	320		$	282			$	602			$	937			$	1,258
Loss expenses paid					68			72			67			74			74				149				216				288
Loss and loss expenses paid				$	365		$	393		$	398		$	394		$	356			$	751			$	1,153			$	1,546
Statutory combined ratio
Loss ratio					47.3	%		40.5	%		49.5	%		59.6	%		48.0	%			54.0	%			52.4	%			49.3	%
Allocated loss expense ratio					4.3			3.6			4.0			5.0			6.8				5.8				5.2				4.7
Unallocated loss expense ratio					6.2			5.6			4.5			5.5			6.3				5.9				5.4				5.5
Net underwriting expense ratio					29.0			34.4			33.1			31.7			31.3				31.5				32.0				32.6
Statutory combined ratio					86.8	%		84.1	%		91.1	%		101.8	%		92.4	%			97.2	%			95.0	%			92.1	%
Contribution from catastrophe losses					0.4			3.1			7.5			15.2			6.8				11.2				9.9				8.2
Statutory combined ratio excluding catastrophe losses					86.4	%		81.0	%		83.6	%		86.6	%		85.6	%			86.0	%			85.1	%			83.9	%
Commission expense ratio					16.5	%		20.2	%		18.3	%		17.8	%		17.9	%			17.8	%			18.0	%			18.5	%
Other expense ratio					12.5			14.2			14.8			13.9			13.4				13.7				14.0				14.1
Statutory expense ratio					29.0	%		34.4	%		33.1	%		31.7	%		31.3	%			31.5	%			32.0	%			32.6	%
GAAP combined ratio
GAAP combined ratio					90.8	%		82.9	%		90.2	%		103.5	%		94.2	%			98.9	%			95.9	%			92.5	%
Contribution from catastrophe losses					0.4			3.1			7.5			15.2			6.8				11.2				9.9				8.2
GAAP combined ratio excluding catastrophe losses					90.4	%		79.8	%		82.7	%		88.3	%		87.4	%			87.7	%			86.0	%			84.3	%

nm - Not meaningful

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

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Personal Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/13	9/30/13	6/30/13	3/31/13			12/31/12			9/30/12			6/30/12			3/31/12			6/30/13	6/30/12			9/30/13	9/30/12			12/31/13	12/31/12
Premiums
Agency renewal written premiums				$	195		$	203		$	231		$	227		$	175			$	402			$	633			$	836
Agency new business written premiums					28			27			31			29			24				53				84				111
Other written premiums					(8	)		(8	)		(9	)		(6	)		(6	)			(12	)			(21	)			(29	)
Reported written premiums – statutory*				$	215		$	222		$	253		$	250		$	193			$	443			$	696			$	918
Unearned premium change					16			4			(34	)		(36	)		16				(20	)			(54	)			(50	)
Earned premiums				$	231		$	226		$	219		$	214		$	209			$	423			$	642			$	868
Year over year change %
Agency renewal written premiums					11	%		10	%		11	%		11	%		12	%			11	%			11	%			11	%
Agency new business written premiums					17			23			24			12			9				10				15				17
Other written premiums					(33	)		27			25			71			(20	)			54				45				41
Reported written premiums – statutory*					11			13			14			19			12				16				15				15
Paid losses and loss expenses
Losses paid				$	122		$	133		$	169		$	151		$	130			$	280			$	450			$	583
Loss expenses paid					19			22			19			21			15				37				54				76
Loss and loss expenses paid				$	141		$	155		$	188		$	172		$	145			$	317			$	504			$	659
Statutory combined ratio
Loss ratio					53.6	%		43.3	%		60.7	%		87.2	%		76.2	%			81.8	%			74.6	%			66.4	%
Allocated loss expense ratio					1.4			1.7			1.9			1.9			1.8				1.8				1.8				1.8
Unallocated loss expense ratio					6.3			6.5			6.9			8.8			5.6				7.2				7.2				7.0
Net underwriting expense ratio					32.8			29.2			28.8			26.5			31.2				28.6				28.6				28.8
Statutory combined ratio					94.1			80.7			98.3			124.4			114.8	%			119.4	%			112.2	%			104.0	%
Contribution from catastrophe losses					3.5			4.4			10.2			26.6			23.5				25.0				19.9				15.9
Statutory combined ratio excluding catastrophe losses					90.6	%		76.3	%		88.1	%		97.8	%		91.3	%			94.4	%			92.3	%			88.1	%
Commission expense ratio					21.7	%		20.4	%		17.9	%		18.2	%		21.3	%			19.6	%			18.9	%			19.3	%
Other expense ratio					11.1			8.8			10.9			8.3			9.9				9.0				9.7				9.5
Statutory expense ratio					32.8	%		29.2	%		28.8	%		26.5	%		31.2	%			28.6	%			28.6	%			28.8	%
GAAP combined ratio
GAAP combined ratio					91.6	%		80.0	%		105.7	%		126.1	%		110.9	%			118.6	%			114.2	%			105.3	%
Contribution from catastrophe losses					3.5			4.4			10.2			26.6			23.5				25.0				19.9				15.9
GAAP combined ratio excluding catastrophe losses					88.1	%		75.6	%		95.5	%		99.5	%		87.4	%			93.6	%			94.3	%			89.4	%

*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.

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
	12/31/13	9/30/13	6/30/13	3/31/13			12/31/12			9/30/12			6/30/12			3/31/12			6/30/13	6/30/12			9/30/13	9/30/12			12/31/13	12/31/12
Premiums
Agency renewal written premiums				$	19		$	19		$	19		$	19		$	16			$	35			$	54			$	73
Agency new business written premiums					10			9			9			11			9				20				29				38
Other written premiums					(2	)		(1	)		(1	)		(3	)		(1	)			(4	)			(5	)			(6	)
Reported written premiums – statutory*				$	27		$	27		$	27		$	27		$	24			$	51			$	78			$	105
Unearned premium change					-			(2	)		(2	)		(5	)		(3	)			(8	)			(10	)			(12	)
Earned premiums				$	27		$	25		$	25		$	22		$	21			$	43			$	68			$	93
Year over year change %
Agency renewal written premiums					19	%		46	%		36	%		58	%		60	%			59	%			50	%			49	%
Agency new business written premiums					11			29			0			10			0				5				4				9
Other written premiums					(100	)		50			0			(200	)		0				(100	)			(67	)			(20	)
Reported written premiums – statutory*					13			50			23			29			33				31				28				33
Paid losses and loss expenses
Losses paid				$	5		$	5		$	5		$	4		$	3			$	7			$	12			$	17
Loss expenses paid					2			2			2			2			1				3				5				7
Loss and loss expenses paid				$	7		$	7		$	7		$	6		$	4			$	10			$	17			$	24
Statutory combined ratio
Loss ratio					47.2	%		19.5	%		64.5	%		59.8	%		65.7	%			62.7	%			63.3	%			51.5	%
Allocated loss expense ratio					11.9			14.0			11.9			15.1			10.6				12.8				12.6				13.0
Unallocated loss expense ratio					6.1			4.7			5.8			3.9			5.3				4.6				5.0				4.9
Net underwriting expense ratio					33.3			32.3			30.9			30.6			31.9				31.2				31.1				31.4
Statutory combined ratio					98.5	%		70.5	%		113.1			109.4			113.5	%			111.3	%			112.0	%			100.8	%
Contribution from catastrophe losses					0.4			1.2			0.7			3.5			3.7				3.5				2.5				2.2
Statutory combined ratio excluding catastrophe losses					98.1	%		69.3	%		112.4	%		105.9	%		109.8	%			107.8	%			109.5	%			98.6	%
Commission expense ratio					26.9	%		26.4	%		25.4	%		25.3	%		26.5	%			25.8	%			25.7	%			25.9	%
Other expense ratio					6.4			5.9			5.5			5.3			5.4				5.4				5.4				5.5
Statutory expense ratio					33.3	%		32.3	%		30.9	%		30.6	%		31.9	%			31.2	%			31.1	%			31.4	%
GAAP combined ratio
GAAP combined ratio					98.0	%		71.5	%		111.5	%		110.7	%		113.6	%			112.1	%			111.9	%			101.0	%
Contribution from catastrophe losses					0.4			1.2			0.7			3.5			3.7				3.5				2.5				2.2
GAAP combined ratio excluding catastrophe losses					97.6	%		70.3	%		110.8	%		107.2	%		109.9	%			108.6	%			109.4	%			98.8	%

*nm - Not meaningful

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

The Cincinnati Life Insurance Company

Statutory Statements of Income

	For the Three Months Ended March 31,
(Dollars in millions)	2013			2012			Change			% Change

Net premiums written	$	58		$	64		$	(6	)		(9	)
Net investment income		35			34			1			3
Amortization of interest maintenance reserve		-			-			-			nm
Commissions and expense allowances on reinsurance ceded		2			2			-			-
Income from fees associated with Separate Accounts		1			-			1			nm
Total revenues	$	96		$	100		$	(4	)		(4	)

Death benefits and matured endowments	$	19		$	17		$	2			12
Annuity benefits		15			13			2			15
Disability benefits and benefits under accident and health contracts		-			-			-			-
Surrender benefits and group conversions		7			6			1			17
Interest and adjustments on deposit-type contract funds		2			3			(1	)		(33	)
Increase in aggregate reserves for life and accident and health contracts		38			43			(5	)		(12	)
Payments on supplementary contracts with life contingencies		-			-			-			-
Total benefit expenses	$	81		$	82		$	(1	)		(1	)

Commissions	$	10		$	10		$	-			-
General insurance expenses and taxes		11			11			-			-
Increase in loading on deferred and uncollected premiums		(2	)		-			(2	)		nm
Net transfers from Separate Accounts		-			-			-			nm
Other deductions		-			-			-			nm
Total operating expenses	$	19		$	21		$	(2	)		(10	)

Federal and foreign income tax provision (benefit)		-			(1	)		1			nm

Net loss from operations before realized capital gains	$	(4	)	$	(2	)	$	(2	)		(100	)

Net realized gains (losses) net of capital gains tax		-			-			-			nm

Net loss (statutory)	$	(4	)	$	(2	)	$	(2	)		(100	)

*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.

Attached files

Stock widget

Investing forum

CINCINNATI FINANCIAL CORP Reports