Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending June 30, 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 July 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

for the period ending June 30, 2013

 

		Page
	Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3
Consolidated
	Quick Reference	4
	CFC and Subsidiaries Consolidation – Six Months Ended June 30, 2013	5
	CFC and Subsidiaries Consolidation – Three Months Ended June 30, 2013	6
	CFC Insurance Subsidiaries – Selected Balance Sheet Data	7
Consolidated Property Casualty Insurance Operations
	Statutory Statements of Income	8
	Consolidated Cincinnati Insurance Companies – Losses Incurred Detail	9
	Consolidated Cincinnati Insurance Companies – Loss Ratio Detail	10
	Consolidated Cincinnati Insurance Companies – Loss Claim Count Detail	11
	Direct Written Premiums by Line of Business and State	12
	Quarterly Property Casualty Data – Commercial Lines	13
	Quarterly Property Casualty Data – Personal Lines and Excess & Surplus Lines	14
	Loss and Loss Expense Analysis – Six Months Ended June 30, 2013	15
	Loss and Loss Expense Analysis – Three Months Ended June 30, 2013	16
Reconciliation Data
	Quarterly Property Casualty Data – Consolidated	17
	Quarterly Property Casualty Data – Commercial Lines	18
	Quarterly Property Casualty Data – Personal Lines	19
	Quarterly Property Casualty Data – Excess & Surplus Lines	20
Life Insurance Operations
	Statutory Statements of Income	21

 

  

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

 

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

 

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

 

·

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

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

·

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 - Second Quarter 2013

(all data shown is for the three months ended or as of June 30, 2013)

 

						Year over year										Year over year
		6/30/2013				change %						6/30/2013				change %
Revenues:										Benefits and expenses:
Commercial lines net written premiums		$	678				8			Commercial lines loss and loss expenses		$	399				(3	)
Personal lines net written premiums			273				9			Personal lines loss and loss expenses			166				(21	)
Excess & surplus lines net written premiums			33				22			Excess & surplus lines loss and loss expenses			18				6
Property casualty net written premiums			984				9			Life and health contract holders' benefits incurred			48				2
Life and accident and health net written premiums			52				3			Underwriting, acquisition and insurance expenses			307				7
Annuity net written premiums			10				(22	)		Interest expenses			14				8
Life, annuity and accident and health net written premiums			62				(2	)		Other operating expenses			4				0
Commercial lines net earned premiums			645				9			Total benefits & expenses			956				(4	)
Personal lines net earned premiums			237				11			Income before income taxes			148				410
Excess & surplus lines net earned premiums			28				27			Total income tax			38				nm
Property casualty net earned premiums			910				10
Fee revenue			3				(50	)		Balance Sheet:
Life and accident and health net earned premiums			44				(14	)
Investment income			131				(1	)		Fixed maturity investments		$	8,992
Realized gains on investments			14				133			Equity securities			3,875
Other revenue			2				33			Other invested assets			66
Total revenues			1,104				8			Total invested assets		$	12,933
										Equity in net assets of subsidiaries		$	5,167
										Loss and loss expense reserves		$	4,284
										Life policy and investment contract reserves			2,345
Income:										Long-term debt and capital lease obligations			833
										Shareholders' equity			5,699
Operating income		$	100				257
Net realized investment gains and losses			10				150			Key ratios:
Net income			110				244
										Commercial lines GAAP combined ratio			94.9	%
										Personal lines GAAP combined ratio			100.4
										Excess & surplus lines GAAP combined ratio			98.7
										Property casualty GAAP combined ratio			96.4
Per share (diluted):
										Commercial lines STAT combined ratio			86.3	%
Operating income		$	0.61				259			Personal lines STAT combined ratio			85.4
Net realized investment gains and losses			0.05				67			Excess & surplus lines STAT combined ratio			95.9
Net income			0.66				230			Property casualty STAT combined ratio			86.3
Book value			34.83				10
Weighted average shares outstanding, in thousands			165,442				1			Value creation ratio			(0.4	)%

 

 

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Six Months Ended June 30, 2013

 

(In millions)		CFC				CONSOL P&C				CLIC				CFC-I				ELIM				Total
Revenues:
Premiums earned:
Property casualty		$	-			$	1,898			$	-			$	-			$	-			$	1,898
Life			-				-				111				-				-				111
Accident health			-				-				3				-				-				3
Premiums ceded			-				(99	)			(28	)			-				-				(127	)
Total earned premium			-				1,799				86				-				-				1,885
Investment income			18				172				69				-				-				259
Realized gain on investments			16				37				2				-				-				55
Fee revenue			-				2				2				-				-				4
Other revenue			7				1				-				3				(7	)			4
Total revenues		$	41			$	2,011			$	159			$	3			$	(7	)		$	2,207
Benefits & expenses:
Losses & policy benefits		$	-			$	1,135			$	126			$	-			$	-			$	1,261
Reinsurance recoveries			-				(28	)			(34	)			-				-				(62	)
Underwriting, acquisition and insurance expenses			-				582				25				-				-				607
Other operating expenses			16				-				-				1				(8	)			9
Interest expense			27				-				-				-				-				27
Total expenses		$	43			$	1,689			$	117			$	1			$	(8	)		$	1,842
Income (loss) before income taxes		$	(2	)		$	322			$	42			$	2			$	1			$	365
Provision (benefit) for income taxes:
Current operating income		$	(7	)		$	78			$	-			$	1			$	-			$	72
Capital gains/losses			5				13				1				-				-				19
Deferred			(3	)			(1	)			14				-				-				10
Total provision (benefit) for income taxes		$	(5	)		$	90			$	15			$	1			$	-			$	101
Operating income (loss)		$	(8	)		$	208			$	26			$	1			$	1			$	228
Net income - current year		$	3			$	232			$	27			$	1			$	1			$	264
Net income (loss) - prior year		$	5			$	95			$	16			$	3			$	(1	)		$	118

 

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

 

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Three Months Ended June 30, 2013

 

(In millions)		CFC				CONSOL P&C				CLIC				CFC-I				ELIM				Total
Revenues:
Premiums earned:
Property casualty		$	-			$	961			$	-			$	-			$	-			$	961
Life			-				-				56				-				-				56
Accident health			-				-				2				-				-				2
Premiums ceded			-				(51	)			(14	)			-				-				(65	)
Total earned premium			-				910				44				-				-				954
Investment income			9				88				34				-				-				131
Realized gain on investments			5				7				2				-				-				14
Fee revenue			-				2				1				-				-				3
Other revenue			4				1				-				1				(4	)			2
Total revenues		$	18			$	1,008			$	81			$	1			$	(4	)		$	1,104
Benefits & expenses:
Losses & policy benefits		$	-			$	598			$	62			$	-			$	-			$	660
Reinsurance recoveries			-				(15	)			(14	)			-				-				(29	)
Underwriting, acquisition and insurance expenses			-				295				12				-				-				307
Interest expenses			7				-				-				-				(3	)			4
Other operating expenses			14				-				-				-				-				14
Total expenses		$	21			$	878			$	60			$	-			$	(3	)		$	956
Income (loss) before income taxes		$	(3	)		$	130			$	21			$	1			$	(1	)		$	148
Provision (benefit) for income taxes:
Current operating income		$	(3	)		$	35			$	-			$	1			$	-			$	33
Capital gains/losses			1				2				1				-				-				4
Deferred			(2	)			(4	)			7				-				-				1
Total provision (benefit) for income taxes		$	(4	)		$	33			$	8			$	1			$	-			$	38
Operating income (loss)		$	(3	)		$	92			$	12			$	-			$	(1	)		$	100
Net income (loss) - current year		$	1			$	97			$	13			$	-			$	(1	)		$	110
Net income (loss) - prior year		$	8			$	14			$	9			$	3			$	(2	)		$	32

 

*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)										$	5,994			$	6,083			$	6,030			$	6,082			$	6,067			$	6,004
Equities (fair value)											2,658				2,645				2,393				2,355				2,246				2,264
Fixed maturities - pretax net unrealized gain											359				532				551				566				502				482
Equities - pretax net unrealized gain											1,040				1,019				756				769				669				731
Loss and loss expense reserves - STAT											3,888				3,826				3,815				3,938				4,006				3,938
Equity GAAP											5,143				5,288				5,056				4,965				4,794				4,864
Surplus - STAT											4,142				4,131				3,914				3,815				3,722				3,835
The Cincinnati Life Insurance Company
Fixed maturities (fair value)										$	2,900			$	2,979			$	2,953			$	2,911			$	2,821			$	2,736
Equities (fair value)											13				18				17				17				17				17
Fixed maturities - pretax net unrealized gain											181				285				291				289				242				223
Equities - pretax net unrealized gain											6				8				8				7				7				7
Equity - GAAP											828				869				857				850				811				792
Surplus - STAT											272				268				276				277				281				281

 

 

Consolidated Cincinnati Insurance Companies

Statutory Statements of Income

 

		For the Three Months Ended June 30,																For the Six Months Ended June 30,
(Dollars in millions)		2013				2012				Change				% Change				2013				2012				Change				% Change
Underwriting income
Net premiums written		$	984			$	904			$	80				9			$	1,954			$	1,747			$	207				12
Unearned premiums increase			74				77				(3	)			(4	)			155				122				33				27
Earned premiums		$	910			$	827			$	83				10			$	1,799			$	1,625			$	174				11
Losses incurred		$	513			$	551			$	(38	)			(7	)		$	948			$	997			$	(49	)			(5	)
Allocated loss expenses incurred			10				37				(27	)			(73	)			44				82				(38	)			(46	)
Unallocated loss expenses incurred			60				53				7				13				115				101				14				14
Other underwriting expenses incurred			297				269				28				10				584				530				54				10
Workers compensation dividend incurred			4				4				-				0				8				7				1				14
Total underwriting deductions		$	884			$	914			$	(30	)			(3	)		$	1,699			$	1,717			$	(18	)			(1	)
Net underwriting profit (loss)		$	26			$	(87	)		$	113				nm			$	100			$	(92	)		$	192				nm
Investment income
Gross investment income earned		$	90			$	91			$	(1	)			(1	)		$	177			$	180			$	(3	)			(2	)
Net investment income earned			88				89				(1	)			(1	)			174				177				(3	)			(2	)
Net realized capital gains (losses)			9				(5	)			14				nm				28				1				27				nm
Net investment gains (net of tax)		$	97			$	84			$	13				15			$	202			$	178			$	24				13
Other income		$	3			$	2			$	1				50			$	3			$	3			$	-				0
Net income (loss) before federal income taxes		$	126			$	(1	)		$	127				nm			$	305			$	89			$	216				243
Federal and foreign income taxes incurred		$	39			$	(2	)		$	41				nm			$	81			$	22			$	59				268
Net income (statutory)		$	87			$	1			$	86				nm			$	224			$	67			$	157				234

  

*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										$	13			$	34			$	32			$	21			$	4			$	10			$	47			$	15						$	36							$	68
New losses $1,000,000-$4,000,000											33				35				44				39				47				31				68				78							117								161
New losses $250,000-$1,000,000											48				56				53				50				58				43				104				102							152								205
Case reserve development above $250,000											75				48				68				60				55				67				123				122							182								250
Large losses subtotal										$	169			$	173			$	197			$	170			$	164			$	151			$	342			$	317						$	487							$	684
IBNR incurred											23				28				(22	)			(25	)			7				19				51				26							2								(20	)
Catastrophe losses incurred											74				10				26				62				146				89				84				233							295								321
Remaining incurred											247				224				152				242				234				187				471				421							662								814
Total losses incurred										$	513			$	435			$	353			$	449			$	551			$	446			$	948			$	997						$	1,446							$	1,799
Commercial Lines
New losses greater than $4,000,000										$	13			$	34			$	32			$	21			$	4			$	10			$	47			$	15						$	36							$	68
New losses $1,000,000-$4,000,000											29				30				36				30				33				24				59				56							86								122
New losses $250,000-$1,000,000											33				41				37				33				36				31				74				68							101								138
Case reserve development above $250,000											71				42				63				56				51				64				113				115							171								234
Large losses subtotal										$	146			$	147			$	168			$	140			$	124			$	129			$	293			$	254						$	394							$	562
IBNR incurred											28				23				1				(21	)			6				-				51				6							(14	)							(13	)
Catastrophe losses incurred											44				2				17				43				89				39				46				127							170								187
Remaining incurred											136				127				65				138				132				105				263				237							374								439
Total losses incurred										$	354			$	299			$	251			$	300			$	351			$	273			$	653			$	624						$	924							$	1,175
Personal Lines
New losses greater than $4,000,000										$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-						$	-							$	-
New losses $1,000,000-$4,000,000											2				4				8				9				13				5				6				18							27								35
New losses $250,000-$1,000,000											9				12				13				14				18				8				21				26							40								53
Case reserve development above $250,000											4				6				4				1				3				2				10				5							6								10
Large losses subtotal										$	15			$	22			$	25			$	24			$	34			$	15			$	37			$	49						$	73							$	98
IBNR incurred											(5	)			-				(24	)			(10	)			(4	)			14				(5	)			11							-								(24	)
Catastrophe losses incurred											29				8				9				18				56				49				37				105							123								132
Remaining incurred											105				94				87				101				100				81				199				181							283								370
Total losses incurred										$	144			$	124			$	97			$	133			$	186			$	159			$	268			$	346						$	479							$	576
Excess & Surplus Lines
New losses greater than $4,000,000										$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-						$	-							$	-
New losses $1,000,000-$4,000,000											2				1				-				1				1				2				3				3							4								4
New losses $250,000-$1,000,000											6				3				3				3				4				4				9				8							11								14
Case reserve development above $250,000											-				-				1				2				1				1				-				3							5								6
Large losses subtotal										$	8			$	4			$	4			$	6			$	6			$	7			$	12			$	14						$	20							$	24
IBNR incurred											-				5				1				6				5				5				5				9							16								17
Catastrophe losses incurred											1				-				-				-				1				1				1				2							2								2
Remaining incurred											6				3				-				3				2				1				9				3							5								5
Total losses incurred										$	15			$	12			$	5			$	15			$	14			$	14			$	27			$	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					1.4	%	3.8	%	3.7	%	2.5	%	0.5	%	1.3	%	2.6	%	0.9	%			1.4	%			2.0	%
New losses $1,000,000-$4,000,000					3.7		3.9		5.0		4.6		5.7		3.9		3.8		4.8				4.7				4.8
New losses $250,000-$1,000,000					5.3		6.3		6.1		5.9		7.1		5.5		5.8		6.2				6.2				6.1
Case reserve development above $250,000					8.2		5.4		7.8		7.0		6.7		8.3		6.8		7.5				7.4				7.5
Large losses subtotal					18.6	%	19.4	%	22.6	%	20.0	%	20.0	%	19.0	%	19.0	%	19.4	%			19.7	%			20.4	%
IBNR incurred					2.5		3.2		(2.4	)	(2.9	)	0.9		2.3		2.8		1.6				0.1				(0.6	)
Total catastrophe losses incurred					8.2		1.1		2.9		7.3		17.6		11.1		4.7		14.5				11.9				9.6
Remaining incurred					27.0		25.2		17.5		28.4		28.2		23.5		26.2		25.9				26.7				24.4
Total loss ratio					56.3	%	48.9	%	40.6	%	52.8	%	66.7	%	55.9	%	52.7	%	61.4	%			58.4	%			53.8	%
Commercial Lines
New losses greater than $4,000,000					1.9	%	5.4	%	5.3	%	3.4	%	0.7	%	1.9	%	3.7	%	1.3	%			2.0	%			2.9	%
New losses $1,000,000-$4,000,000					4.5		4.7		5.7		4.9		5.5		4.2		4.6		4.9				4.9				5.1
New losses $250,000-$1,000,000					5.2		6.5		5.9		5.5		6.2		5.5		5.8		5.9				5.8				5.8
Case reserve development above $250,000					11.1		6.7		10.1		9.3		8.7		11.2		8.9		9.9				9.7				9.8
Large losses subtotal					22.7	%	23.3	%	27.0	%	23.1	%	21.1	%	22.8	%	23.0	%	22.0	%			22.4	%			23.6	%
IBNR incurred					4.3		3.7		0.3		(3.4	)	1.1		0.0		4.0		0.5				(0.8	)			(0.5	)
Total catastrophe losses incurred					6.9		0.3		2.7		7.1		15.1		6.8		3.6		11.0				9.6				7.8
Remaining incurred					21.0		20.0		10.5		22.7		22.3		18.4		20.6		20.5				21.2				18.4
Total loss ratio					54.9	%	47.3	%	40.5	%	49.5	%	59.6	%	48.0	%	51.2	%	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	%			0.0	%			0.0	%
New losses $1,000,000-$4,000,000					0.9		1.6		3.8		3.7		6.4		2.3		1.2		4.4				4.1				4.1
New losses $250,000-$1,000,000					3.8		5.4		5.9		6.1		8.4		4.0		4.6		6.2				6.2				6.1
Case reserve development above $250,000					1.6		2.4		2.1		0.5		1.2		0.9		2.0		1.1				0.9				1.2
Large losses subtotal					6.3	%	9.4	%	11.8	%	10.3	%	16.0	%	7.2	%	7.8	%	11.7	%			11.2	%			11.4	%
IBNR incurred					(2.2	)	0.2		(10.8	)	(4.6	)	(1.6	)	6.6		(1.1	)	2.5				0.1				(2.8	)
Total catastrophe losses incurred					12.4		3.3		3.5		8.8		26.2		23.3		7.9		24.8				19.3				15.2
Remaining incurred					44.1		40.7		38.8		46.2		46.6		39.1		42.6		42.8				44.0				42.6
Total loss ratio					60.6	%	53.6	%	43.3	%	60.7	%	87.2	%	76.2	%	57.2	%	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	%			0.0	%			0.0	%
New losses $1,000,000-$4,000,000					7.8		4.2		0.0		4.3		4.4		11.1		6.1		7.7				6.5				4.7
New losses $250,000-$1,000,000					19.7		11.1		11.1		15.0		16.5		17.7		15.5		17.1				16.3				14.9
Case reserve development above $250,000					1.0		1.0		2.7		8.8		6.4		5.6		1.0		6.0				7.0				5.9
Large losses subtotal					28.5	%	16.3	%	13.8	%	28.1	%	27.3	%	34.4	%	22.6	%	30.8	%			29.8	%			25.5	%
IBNR incurred					1.1		17.0		6.0		25.9		21.0		22.2		8.9		21.6				23.2				18.5
Total catastrophe losses incurred					1.9		0.4		1.2		0.5		3.4		3.7		1.1		3.5				2.4				2.1
Remaining incurred					20.6		13.5		(1.5	)	10.0		8.1		5.4		17.1		6.8				7.9				5.4
Total loss ratio					52.1	%	47.2	%	19.5	%	64.5	%	59.8	%	65.7	%	49.7	%	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					2		5		6		4		1		2		7		3				7				13
New losses $1,000,000-$4,000,000					21		21		28		27		29		19		42		48				75				103
New losses $250,000-$1,000,000					107		116		118		116		130		101		223		231				347				465
Case reserve development above $250,000					92		69		99		86		78		86		161		164				250				349
Large losses total					222		211		251		233		238		208		433		446				679				930
Commercial Lines
New losses greater than $4,000,000					2		5		6		4		1		2		7		3				7				13
New losses $1,000,000-$4,000,000					17		17		22		21		18		15		34		33				54				76
New losses $250,000-$1,000,000					74		86		82		78		77		70		160		147				225				307
Case reserve development above $250,000					83		56		86		79		64		81		139		145				224				310
Large losses total					176		164		196		182		160		168		340		328				510				706
Personal Lines
New losses greater than $4,000,000					-		-		-		-		-		-		-		-				-				-
New losses $1,000,000-$4,000,000					2		3		6		5		10		2		5		12				17				23
New losses $250,000-$1,000,000					19		24		29		31		44		21		43		65				96				125
Case reserve development above $250,000					8		12		11		3		8		4		20		12				15				26
Large losses total					29		39		46		39		62		27		68		89				128				174
Excess & Surplus Lines
New losses greater than $4,000,000					-		-		-		-		-		-		-		-				-				-
New losses $1,000,000-$4,000,000					2		1		-		1		1		2		3		3				4				4
New losses $250,000-$1,000,000					14		6		7		7		9		10		20		19				26				33
Case reserve development above $250,000					1		1		2		4		6		1		2		7				11				13
Large losses total					17		8		9		12		16		13		25		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 Six Months Ended June 30, 2013

 

(Dollars in millions)		Commercial Lines																												Personal Lines												E & S				Consolidated								Comm'l				Personal				E & S				Consol
Risk State		Comm Casualty				Comm Property				Comm Auto				Workers' Comp				Spec Packages				Surety &  Exec Risk				Mach. &  Equipment				Personal Auto				Home  Owner				Other  Personal				All Lines				2013 Total				2012 Total				Change  %				Change %				Change %				Change %
OH		$	79.6			$	62.2			$	39.8			$	-			$	7.9			$	11.8			$	3.5			$	63.4			$	53.2			$	17.6			$	6.3			$	345.5			$	319.3				10.1				4.8				6.3				7.9
IL			31.8				23.9				15.2				28.2				6.8				4.3				1.8				16.1				14.0				4.4				4.2				150.7				144.2				3.3				7.7				10.5				4.5
IN			26.4				22.3				14.4				17.8				3.8				3.4				1.8				16.7				17.5				4.3				5.3				134.2				124.6				7.8				6.9				12.9				7.8
PA			28.3				20.4				19.7				28.3				4.3				3.6				1.3				5.8				4.5				2.0				2.7				121.0				112.1				6.6				17.8				20.8				7.9
GA			16.4				15.1				12.4				7.0				4.2				2.8				0.8				18.3				19.1				5.4				4.2				105.6				94.4				14.6				7.3				26.3				11.9
MI			19.9				13.9				10.1				11.0				5.1				3.3				1.2				16.2				12.1				2.4				3.2				98.2				83.0				13.7				29.2				21.3				18.4
NC			17.9				17.4				10.4				9.8				7.5				4.3				1.1				12.4				9.5				3.4				2.5				96.2				87.1				6.3				21.4				34.9				10.5
TN			16.3				14.3				10.6				6.5				5.9				2.5				1.0				7.8				8.9				2.7				1.2				77.8				66.6				16.4				19.7				(1.2	)			16.9
KY			12.6				13.9				9.4				1.9				3.4				1.7				0.7				13.1				11.6				2.9				2.5				73.8				66.0				12.6				8.3				44.1				11.7
WI			15.6				11.0				7.7				20.5				2.0				1.8				1.0				4.5				4.6				1.9				1.6				72.2				64.7				13.0				3.5				12.1				11.4
VA			16.7				13.7				10.7				9.7				2.5				3.4				0.8				5.0				4.4				1.5				2.1				70.5				65.7				8.9				(0.1	)			7.7				7.3
AL			10.8				12.4				5.0				0.5				4.8				1.6				0.7				9.4				15.3				3.4				2.4				66.3				60.8				11.2				5.4				26.4				9.1
MN			14.9				10.0				5.7				5.5				1.7				1.1				0.7				7.6				7.3				2.3				1.6				58.3				49.8				13.9				25.7				12.2				17.1
MO			14.1				12.5				7.2				7.6				3.9				1.2				0.8				2.9				4.1				0.9				2.5				57.8				49.6				18.5				11.7				(2.6	)			16.4
TX			19.9				13.6				12.9				0.9				0.6				1.2				1.0				-				-				-				5.0				55.1				40.2				37.8				24.7				31.3				37.2
IA			10.9				8.3				5.0				10.5				1.9				1.6				0.7				2.5				2.6				0.9				0.9				45.8				42.2				9.9				4.3				(14.1	)			8.5
NY			18.0				7.4				6.4				1.3				0.6				1.6				0.5				0.8				0.3				0.1				1.1				38.1				33.2				9.4				nm				63.6				14.8
MD			9.2				5.3				6.6				6.5				0.8				1.4				0.3				2.1				1.9				0.5				1.0				35.6				29.9				16.3				45.9				0.7				18.8
FL			9.7				7.7				3.6				0.6				0.3				0.9				0.3				4.0				5.9				1.0				1.5				35.5				40.7				(17.1	)			(2.1	)			(11.3	)			(12.7	)
AR			4.8				6.9				3.7				1.5				2.9				0.7				0.5				3.6				3.9				1.0				1.1				30.6				27.2				5.8				37.1				(4.6	)			12.4
KS			5.1				5.4				3.0				4.0				1.9				0.8				0.3				2.5				3.5				0.7				0.5				27.8				25.3				12.3				6.2				(21.1	)			10.0
SC			5.1				4.4				3.7				2.2				1.5				1.0				0.2				2.9				2.0				0.6				0.8				24.5				20.5				10.0				66.3				32.2				19.8
AZ			6.9				4.1				5.2				2.3				0.5				0.7				0.3				1.8				1.3				0.5				0.9				24.3				20.1				21.0				27.8				1.3				21.1
UT			6.9				3.7				4.8				0.2				0.6				1.2				0.2				3.6				1.7				0.4				0.9				24.2				20.6				17.7				13.0				34.4				17.1
MT			7.2				3.6				3.9				-				0.5				0.2				0.3				1.2				1.1				0.3				0.4				18.8				16.5				11.5				21.8				147.4				14.1
NE			4.5				4.5				2.2				4.0				0.9				0.7				0.3				0.4				0.5				0.1				0.7				18.8				16.0				20.6				1.4				(15.0	)			17.6
ID			5.5				3.5				3.6				0.1				0.5				0.6				0.3				1.3				0.8				0.2				0.6				17.1				15.4				8.0				26.3				47.7				11.3
WV			4.7				3.7				3.4				1.0				1.4				0.4				0.2				-				0.3				0.1				1.1				16.4				13.6				22.6				(5.1	)			10.3				20.9
CO			5.9				3.9				3.8				0.2				-				0.6				0.3				-				0.1				-				1.3				16.0				10.7				48.3				4.3				103.5				51.0
VT			2.4				2.1				1.5				3.9				0.5				0.6				0.1				0.7				0.6				0.2				0.4				13.1				12.0				10.0				6.7				(4.9	)			9.1
ND			4.5				2.9				2.6				-				0.6				0.4				0.2				0.4				0.3				0.1				0.2				12.2				9.8				25.3				9.8				(7.1	)			23.6
NH			1.6				1.5				0.8				1.7				0.4				0.2				0.1				0.9				0.9				0.3				0.3				8.8				7.5				20.0				13.2				3.7				17.6
OR			2.1				1.5				1.6				0.1				-				0.5				0.2				0.3				0.1				-				1.2				7.6				4.1				78.0				nm				58.3				84.1
WA			2.5				1.6				2.0				-				-				0.6				0.1				-				-				-				0.6				7.4				5.5				32.0				nm				48.9				33.2
SD			1.7				1.6				0.9				1.6				0.4				0.3				0.1				-				-				-				0.2				6.8				6.3				7.3				nm				34.2				8.1
NM			2.3				1.3				1.4				0.3				0.1				0.8				-				-				-				-				0.3				6.5				5.9				10.4				nm				0.3				9.9
DE			1.6				1.2				1.1				0.9				0.2				0.1				0.1				-				-				-				0.1				5.4				4.3				25.2				nm				93.9				26.1
CT			1.0				0.8				0.5				0.3				-				0.1				0.1				-				-				-				0.2				2.9				1.6				97.4				nm				101.6				96.0
WY			0.8				0.7				0.4				-				-				0.2				-				-				-				-				0.2				2.3				1.9				25.7				nm				(20.1	)			20.7
All Other			2.1				1.2				1.4				2.5				-				1.0				-				-				-				-				0.6				9.0				7.7				19.7				nm				(14.8	)			16.5
Total		$	468.5			$	365.6			$	264.1			$	201.2			$	80.9			$	65.1			$	23.9			$	228.3			$	213.9			$	62.1			$	64.2			$	2,037.7			$	1,826.3				11.6				10.9				16.0				11.6
Other Direct			-				0.6				2.0				2.2				-				-				-				4.0				0.1				-				-				8.9				2.5				99.2				nm				-				256.9
Total Direct		$	468.5			$	366.2			$	266.1			$	203.4			$	80.9			$	65.1			$	23.9			$	232.3			$	214.0			$	62.1			$	64.2			$	2,046.7			$	1,828.8				11.8				11.8				16.0				11.9

 

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										$	222			$	237			$	189			$	200			$	202			$	202			$	459			$	404							$	604							$	793
Earned premiums											211				204				198				197				191				181				415				372								569								767
Current accident year before catastrophe losses											55.7	%			60.8	%			67.5	%			52.1	%			67.2	%			70.2	%			58.2	%			68.7	%							63.0	%							64.1	%
Current accident year catastrophe losses											-				-				-				-				-				-				-				-								-								-
Prior accident years before catastrophe losses											(15.1	)			(11.5	)			(24.0	)			(12.9	)			(29.2	)			(26.7	)			(13.3	)			(28.0	)							(22.8	)							(23.1	)
Prior accident years catastrophe losses											-				-				-				-				-				-				-				-								-								-
Total loss and loss expense ratio											40.6	%			49.3	%			43.5	%			39.2	%			38.0	%			43.5	%			44.9	%			40.7	%							40.2	%							41.0	%
Commercial property:
Written premiums										$	164			$	166			$	136			$	150			$	146			$	141			$	330			$	287							$	437							$	573
Earned premiums											152				147				142				138				134				131				299				265								403								545
Current accident year before catastrophe losses											52.9	%			48.9	%			28.0	%			45.3	%			55.3	%			57.2	%			50.9	%			56.2	%							52.5	%							46.1	%
Current accident year catastrophe losses											28.4				2.8				10.4				29.6				56.7				31.4				15.8				44.3								39.2								31.7
Prior accident years before catastrophe losses											(6.0	)			2.0				(2.3	)			(2.1	)			(3.4	)			(4.4	)			(2.0	)			(4.0	)							(3.3	)							(3.1	)
Prior accident years catastrophe losses											(3.2	)			(1.9	)			(2.1	)			(0.7	)			1.3				(5.8	)			(2.6	)			(2.2	)							(1.7	)							(1.8	)
Total loss and loss expense ratio											72.1	%			51.8	%			34.0	%			72.1	%			109.9	%			78.4	%			62.1	%			94.3	%							86.7	%							72.9	%
Commercial auto:
Written premiums										$	127			$	135			$	106			$	109			$	115			$	114			$	262			$	229							$	338							$	444
Earned premiums											117				114				111				108				106				101				231				207								315								426
Current accident year before catastrophe losses											76.3	%			59.6	%			66.2	%			71.1	%			71.8	%			73.9	%			68.1	%			72.8	%							72.2	%							70.7	%
Current accident year catastrophe losses											1.5				0.4				(0.2	)			0.8				3.2				1.4				1.0				2.4								1.8								1.3
Prior accident years before catastrophe losses											(3.2	)			2.1				7.3				4.9				(1.8	)			(11.9	)			(0.7	)			(6.8	)							(2.7	)							(0.1	)
Prior accident years catastrophe losses											(0.3	)			(0.2	)			-				(0.2	)			(0.3	)			(0.5	)			(0.2	)			(0.4	)							(0.3	)							(0.2	)
Total loss and loss expense ratio											74.3	%			61.9	%			73.3	%			76.6	%			72.9	%			62.9	%			68.2	%			68.0	%							71.0	%							71.7	%
Workers' compensation:
Written premiums										$	85			$	113			$	84			$	78			$	86			$	93			$	198			$	179							$	257							$	341
Earned premiums											87				88				89				89				85				81				175				166								255								344
Current accident year before catastrophe losses											84.8	%			71.8	%			87.6	%			80.8	%			80.8	%			82.7	%			78.3	%			81.7	%							81.5	%							83.0	%
Current accident year catastrophe losses											-				-				-				-				-				-				-				-								-								-
Prior accident years before catastrophe losses											(17.8	)			(8.0	)			(26.2	)			(25.7	)			(14.3	)			(19.0	)			(12.9	)			(16.6	)							(19.8	)							(21.5	)
Prior accident years catastrophe losses											-				-				-				-				-				-				-				-								-								-
Total loss and loss expense ratio											67.0	%			63.8	%			61.4	%			55.1	%			66.5	%			63.7	%			65.4	%			65.1	%							61.7	%							61.5	%
Specialty package:
Written premiums										$	36			$	40			$	36			$	39			$	38			$	40			$	76			$	78							$	117							$	153
Earned premiums											37				39				39				37				37				38				76				75								112								151
Current accident year before catastrophe losses											80.0	%			73.5	%			57.5	%			56.7	%			72.8	%			66.4	%			76.7	%			69.6	%							65.3	%							63.4	%
Current accident year catastrophe losses											16.1				6.4				10.1				29.3				23.9				24.8				11.2				24.4								26.0								22.0
Prior accident years before catastrophe losses											(3.3	)			(2.5	)			(8.7	)			9.1				(3.0	)			(14.0	)			(2.8	)			(8.5	)							(2.7	)							(4.2	)
Prior accident years catastrophe losses											(0.6	)			(3.4	)			9.3				(14.8	)			(0.2	)			(12.6	)			(2.0	)			(6.5	)							(9.2	)							(4.5	)
Total loss and loss expense ratio											92.2	%			74.0	%			68.2	%			80.3	%			93.5	%			64.6	%			83.1	%			79.0	%							79.4	%							76.7	%
Surety and executive risk:
Written premiums										$	33			$	26			$	27			$	31			$	29			$	27			$	59			$	56							$	87							$	114
Earned premiums											30				29				29				28				27				27				59				54								82								111
Current accident year before catastrophe losses											60.1	%			44.5	%			57.7	%			60.4	%			72.1	%			49.2	%			52.4	%			60.9	%							60.7	%							59.9	%
Current accident year catastrophe losses											-				-				-				-				-				-				-				-								-								-
Prior accident years before catastrophe losses											4.8				60.8				(23.9	)			(17.2	)			10.3				34.8				32.4				22.3								8.9								0.4
Prior accident years catastrophe losses											-				-				-				-				-				-				-				-								-								-
Total loss and loss expense ratio											64.9	%			105.3	%			33.8	%			43.2	%			82.4	%			84.0	%			84.8	%			83.2	%							69.6	%							60.3	%
Machinery and equipment:
Written premiums										$	11			$	11			$	10			$	12			$	10			$	9			$	22			$	19							$	31							$	41
Earned premiums											11				10				10				10				10				9				21				19								29								39
Current accident year before catastrophe losses											45.8	%			15.0	%			11.5	%			19.9	%			23.8	%			36.0	%			30.5	%			29.8	%							26.4	%							22.5	%
Current accident year catastrophe losses											-				-				-				-				-				-				-				-								-								-
Prior accident years before catastrophe losses											(4.9	)			8.0				(4.1	)			(3.9	)			(2.5	)			3.2				1.5				0.4								(1.1	)							(1.9	)
Prior accident years catastrophe losses											-				-				-				-				-				-				-				-								-								-
Total loss and loss expense ratio											40.9	%			23.0	%			7.4	%			16.0	%			21.3	%			39.2	%			32.0	%			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										$	125			$	100			$	102			$	117			$	115			$	91			$	225			$	206							$	323							$	425
Earned premiums											109				107				105				101				100				98				216				198								299								404
Current accident year before catastrophe losses											85.4	%			66.9	%			71.6	%			68.2	%			78.0	%			73.5	%			76.3	%			75.8	%							73.2	%							72.8	%
Current accident year catastrophe losses											1.4				1.4				(0.3	)			(3.1	)			9.7				5.1				1.4				7.4								3.9								2.8
Prior accident years before catastrophe losses											(10.2	)			7.9				1.4				(5.2	)			(4.7	)			(8.1	)			(1.2	)			(6.4	)							(6.0	)							(4.1	)
Prior accident years catastrophe losses											(0.4	)			(0.3	)			(0.1	)			(0.3	)			(0.7	)			(0.8	)			(0.4	)			(0.8	)							(0.6	)							(0.5	)
Total loss and loss expense ratio											76.2	%			75.9	%			72.6	%			59.6	%			82.3	%			69.7	%			76.1	%			76.0	%							70.5	%							71.0	%
Homeowner:
Written premiums										$	116			$	89			$	93			$	105			$	103			$	77			$	205			$	180							$	285							$	378
Earned premiums											99				96				92				90				87				84				195				171								261								353
Current accident year before catastrophe losses											50.5	%			40.6	%			52.1	%			80.7	%			74.0	%			63.0	%			45.6	%			68.6	%							72.8	%							67.4	%
Current accident year catastrophe losses											30.1				9.4				10.4				28.1				59.2				60.4				19.9				59.8								48.9								38.8
Prior accident years before catastrophe losses											(7.4	)			(0.7	)			(17.3	)			(11.9	)			(6.0	)			(2.9	)			(4.1	)			(4.5	)							(7.1	)							(9.7	)
Prior accident years catastrophe losses											(2.0	)			(2.4	)			(0.4	)			(4.9	)			(5.7	)			(9.8	)			(2.2	)			(7.7	)							(6.8	)							(5.1	)
Total loss and loss expense ratio											71.2	%			46.9	%			44.8	%			92.0	%			121.5	%			110.7	%			59.2	%			116.2	%							107.8	%							91.4	%
Other personal:
Written premiums										$	32			$	26			$	27			$	31			$	32			$	25			$	58			$	57							$	88							$	115
Earned premiums											29				28				29				28				27				27				57				54								82								111
Current accident year before catastrophe losses											52.5				56.7				38.6	%			46.2	%			68.6	%			63.1	%			54.5				65.9	%							59.2	%							53.8	%
Current accident year catastrophe losses											4.3				1.5				4.5				18.4				6.0				11.7				2.9				8.8								12.1								10.1
Prior accident years before catastrophe losses											(17.8	)			(1.5	)			(46.1	)			(30.4	)			6.2				(22.1	)			(9.5	)			(7.8	)							(15.5	)							(23.5	)
Prior accident years catastrophe losses											(0.9	)			(1.2	)			(0.2	)			(1.2	)			(1.2	)			(3.1	)			(1.1	)			(2.1	)							(1.8	)							(1.4	)
Total loss and loss expense ratio											38.1	%			55.5	%			(3.2	)%			33.0	%			79.6	%			49.6	%			46.8	%			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										$	33			$	27			$	27			$	27			$	27			$	24			$	60			$	51							$	78							$	105
Earned premiums											28				27				25				25				22				21				55				43								68								93
Current accident year before catastrophe losses											65.7	%			73.6	%			52.3	%			87.5	%			74.6	%			78.3	%			69.6	%			76.4	%							80.4	%							72.8	%
Current accident year catastrophe losses											0.9				0.1				1.4				1.4				3.2				2.4				0.6				2.8								2.3								2.1
Prior accident years before catastrophe losses											(0.7	)			(8.8	)			(15.3	)			(6.0	)			0.7				(0.4	)			(4.7	)			0.2								(2.0	)							(5.6	)
Prior accident years catastrophe losses											1.0				0.3				(0.2	)			(0.7	)			0.3				1.3				0.6				0.7								0.2								0.1
Total loss and loss expense ratio											66.9	%			65.2	%			38.2	%			82.2	%			78.8	%			81.6	%			66.1	%			80.1	%							80.9	%							69.4	%

 

*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.

 

 

Consolidated Cincinnati Insurance Companies

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 six months ended June 30, 2013
Commercial casualty		$	128			$	65			$	193			$	4			$	14			$	(16	)		$	2			$	132			$	14			$	49			$	195
Commercial property			166				15				181				1				6				(1	)			6				167				6				14				187
Commercial auto			126				21				147				2				8				-				10				128				8				21				157
Workers' compensation			102				23				125				(21	)			19				(6	)			(8	)			81				19				17				117
Specialty packages			72				9				81				(16	)			1				(1	)			(16	)			56				1				8				65
Surety and executive risk			25				8				33				14				5				(1	)			18				39				5				7				51
Machinery and equipment			7				-				7				-				-				-				-				7				-				-				7
Total commercial lines			626				141				767				(16	)			53				(25	)			12				610				53				116				779
Personal auto			130				24				154				15				6				3				24				145				6				27				178
Homeowners			111				13				124				2				(8	)			(3	)			(9	)			113				(8	)			10				115
Other personal			23				2				25				3				(1	)			-				2				26				(1	)			2				27
Total personal lines			264				39				303				20				(3	)			-				17				284				(3	)			39				320
Commercial casualty & property			10				5				15				12				5				4				21				22				5				9				36
Total excess & surplus lines			10				5				15				12				5				4				21				22				5				9				36
Total property casualty		$	900			$	185			$	1,085			$	16			$	55			$	(21	)		$	50			$	916			$	55			$	164			$	1,135
Ceded loss and loss expense incurred for the six months ended June 30, 2013
Commercial casualty		$	7			$	3			$	10			$	(3	)		$	1			$	-			$	(2	)		$	4			$	1			$	3			$	8
Commercial property			7				1				8				(5	)			(2	)			-				(7	)			2				(2	)			1				1
Commercial auto			-				-				-				2				-				-				2				2				-				-				2
Workers' compensation			5				-				5				(5	)			1				-				(4	)			-				1				-				1
Specialty packages			20				1				21				(19	)			(1	)			-				(20	)			1				(1	)			1				1
Surety and executive risk			2				1				3				(1	)			-				-				(1	)			1				-				1				2
Machinery and equipment			-				-				-				-				-				-				-				-				-				-				-
Total commercial lines			41				6				47				(31	)			(1	)			-				(32	)			10				(1	)			6				15
Personal auto			1				-				1				13				-				-				13				14				-				-				14
Homeowners			2				-				2				-				(3	)			-				(3	)			2				(3	)			-				(1	)
Other personal			-				-				-				-				-				-				-				-				-				-				-
Total personal lines			3				-				3				13				(3	)			-				10				16				(3	)			-				13
Commercial casualty & property			1				-				1				-				(1	)			-				(1	)			1				(1	)			-				-
Total excess & surplus lines			1				-				1				-				(1	)			-				(1	)			1				(1	)			-				-
Total property casualty		$	45			$	6			$	51			$	(18	)		$	(5	)		$	-			$	(23	)		$	27			$	(5	)		$	6			$	28
Net loss and loss expense incurred for the six months ended June 30, 2013
Commercial casualty		$	121			$	62			$	183			$	7			$	13			$	(16	)		$	4			$	128			$	13			$	46			$	187
Commercial property			159				14				173				6				8				(1	)			13				165				8				13				186
Commercial auto			126				21				147				-				8				-				8				126				8				21				155
Workers' compensation			97				23				120				(16	)			18				(6	)			(4	)			81				18				17				116
Specialty packages			52				8				60				3				2				(1	)			4				55				2				7				64
Surety and executive risk			23				7				30				15				5				(1	)			19				38				5				6				49
Machinery and equipment			7				-				7				-				-				-				-				7				-				-				7
Total commercial lines			585				135				720				15				54				(25	)			44				600				54				110				764
Personal auto			129				24				153				2				6				3				11				131				6				27				164
Homeowners			109				13				122				2				(5	)			(3	)			(6	)			111				(5	)			10				116
Other personal			23				2				25				3				(1	)			-				2				26				(1	)			2				27
Total personal lines			261				39				300				7				-				-				7				268				-				39				307
Commercial casualty & property			9				5				14				12				6				4				22				21				6				9				36
Total excess & surplus lines			9				5				14				12				6				4				22				21				6				9				36
Total property casualty		$	855			$	179			$	1,034			$	34			$	60			$	(21	)		$	73			$	889			$	60			$	158			$	1,107

 

 

Consolidated Cincinnati Insurance Companies

Loss and Loss Expense Analysis

 

																						Change in				Total
						Paid								Change in				Change in				loss				change												Loss
		Paid				loss				Total				case				IBNR				expense				in				Case				IBNR				expense				Total
(In millions)		losses				expense				paid				reserves				reserves				reserves				reserves				incurred				incurred				incurred				incurred
Gross loss and loss expense incurred for the three months ended June 30, 2013
Commercial casualty		$	57			$	35			$	92			$	13			$	(2	)		$	(15	)		$	(4	)		$	70			$	(2	)		$	20			$	88
Commercial property			85				7				92				9				9				(1	)			17				94				9				6				109
Commercial auto			61				11				72				10				6				-				16				71				6				11				88
Workers' compensation			49				11				60				(9	)			15				(6	)			-				40				15				5				60
Specialty packages			42				4				46				(12	)			1				(1	)			(12	)			30				1				3				34
Surety and executive risk			15				4				19				(5	)			5				(1	)			(1	)			10				5				3				18
Machinery and equipment			4				-				4				-				-				-				-				4				-				-				4
Total commercial lines			313				72				385				6				34				(24	)			16				319				34				48				401
Personal auto			65				11				76				13				5				2				20				78				5				13				96
Homeowners			63				7				70				8				(8	)			-				-				71				(8	)			7				70
Other personal			14				1				15				(2	)			(1	)			-				(3	)			12				(1	)			1				12
Total personal lines			142				19				161				19				(4	)			2				17				161				(4	)			21				178
Commercial casualty & property			4				3				7				11				-				1				12				15				-				4				19
Total excess & surplus lines			4				3				7				11				-				1				12				15				-				4				19
Total property casualty		$	459			$	94			$	553			$	36			$	30			$	(21	)		$	45			$	495			$	30			$	73			$	598
Ceded loss and loss expense incurred for the three months ended June 30, 2013
Commercial casualty		$	2			$	3			$	5			$	(2	)		$	-			$	-			$	(2	)		$	-			$	-			$	3			$	3
Commercial property			5				1				6				(6	)			(1	)			-				(7	)			(1	)			(1	)			1				(1	)
Commercial auto			-				-				-				1				-				-				1				1				-				-				1
Workers' compensation			2				-				2				(1	)			-				-				(1	)			1				-				-				1
Specialty packages			16				-				16				(15	)			(1	)			-				(16	)			1				(1	)			-				-
Surety and executive risk			2				-				2				(4	)			-				-				(4	)			(2	)			-				-				(2	)
Machinery and equipment			-				-				-				-				-				-				-				-				-				-				-
Total commercial lines			27				4				31				(27	)			(2	)			-				(29	)			-				(2	)			4				2
Personal auto			-				-				-				13				-				-				13				13				-				-				13
Homeowners			1				-				1				-				(2	)			-				(2	)			1				(2	)			-				(1	)
Other personal			-				-				-				-				-				-				-				-				-				-				-
Total personal lines			1				-				1				13				(2	)			-				11				14				(2	)			-				12
Commercial casualty & property			-				-				-				1				-				-				1				1				-				-				1
Total excess & surplus lines			-				-				-				1				-				-				1				1				-				-				1
Total property casualty		$	28			$	4			$	32			$	(13	)		$	(4	)		$	-			$	(17	)		$	15			$	(4	)		$	4			$	15
Net loss and loss expense incurred for the three months ended June 30, 2013
Commercial casualty		$	55			$	32			$	87			$	15			$	(2	)		$	(15	)		$	(2	)		$	70			$	(2	)		$	17			$	85
Commercial property			80				6				86				15				10				(1	)			24				95				10				5				110
Commercial auto			61				11				72				9				6				-				15				70				6				11				87
Workers' compensation			47				11				58				(8	)			15				(6	)			1				39				15				5				59
Specialty packages			26				4				30				3				2				(1	)			4				29				2				3				34
Surety and executive risk			13				4				17				(1	)			5				(1	)			3				12				5				3				20
Machinery and equipment			4				-				4				-				-				-				-				4				-				-				4
Total commercial lines			286				68				354				33				36				(24	)			45				319				36				44				399
Personal auto			65				11				76				-				5				2				7				65				5				13				83
Homeowners			62				7				69				8				(6	)			-				2				70				(6	)			7				71
Other personal			14				1				15				(2	)			(1	)			-				(3	)			12				(1	)			1				12
Total personal lines			141				19				160				6				(2	)			2				6				147				(2	)			21				166
Commercial casualty & property			4				3				7				10				-				1				11				14				-				4				18
Total excess & surplus lines			4				3				7				10				-				1				11				14				-				4				18
Total property casualty		$	431			$	90			$	521			$	49			$	34			$	(21	)		$	62			$	480			$	34			$	69			$	583

 

 

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Consolidated

 

		Three months ended																														Six months ended								Nine months ended							Twelve months ended
(Dollars 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				6/30/13				6/30/12				9/30/13			9/30/12				12/31/13			12/31/12
Premiums
Agency renewal written premiums								$	879			$	845			$	771			$	807			$	798			$	762			$	1,724			$	1,560						$	2,367						$	3,138
Agency new business written premiums									139				135				132				130				131				108				274				239							369							501
Other written premiums									(34	)			(10	)			(66	)			(38	)			(26	)			(27	)			(44	)			(53	)						(91	)						(157	)
Reported written premiums – statutory*								$	984			$	970			$	837			$	899			$	903			$	843			$	1,954			$	1,746						$	2,645						$	3,482
Unearned premium change									(74	)			(81	)			32				(48	)			(77	)			(45	)			(155	)			(122	)						(170	)						(138	)
Earned premiums								$	910			$	889			$	869			$	851			$	826			$	798			$	1,799			$	1,624						$	2,475						$	3,344
Year over year change %
Agency renewal written premiums									10	%			11	%			8	%			11	%			11	%			8	%			11	%			9	%						10	%						9	%
Agency new business written premiums									6				25				28				13				12				6				15				9							10							15
Other written premiums									(31	)			63				(20	)			30				61				13				17				45							40							24
Reported written premiums – statutory*									9				15				10				14				18				8				12				13							13							12
Paid losses and loss expenses
Losses paid								$	431			$	424			$	459			$	507			$	475			$	415			$	855			$	890						$	1,399						$	1,858
Loss expenses paid									90				89				96				88				97				90				179				189							275							371
Loss and loss expenses paid								$	521			$	513			$	555			$	595			$	572			$	505			$	1,034			$	1,079						$	1,674						$	2,229
Statutory combined ratio
Loss ratio									56.3	%			48.9	%			40.6	%			52.8	%			66.7	%			55.9	%			52.7	%			61.4	%						58.4	%						53.8	%
Allocated loss expense ratio									1.1				3.9				3.4				3.7				4.5				5.5				2.4				5.0							4.6							4.3
Unallocated loss expense ratio									6.6				6.2				5.9				5.2				6.3				6.1				6.4				6.3							5.9							5.8
Net underwriting expense ratio									30.6				29.9				33.0				31.8				30.2				31.3				30.3				30.7							31.1							31.5
Statutory combined ratio									94.6	%			88.9	%			82.9	%			93.5	%			107.7	%			98.8	%			91.8	%			103.4	%						100.0	%						95.4	%
Contribution from catastrophe losses									8.3				1.2				3.4				8.0				17.8				11.1				4.8				14.6							12.3							10.0
Statutory combined ratio excluding catastrophe losses									86.3	%			87.7	%			79.5	%			85.5	%			89.9	%			87.7	%			87.0	%			88.8	%						87.7	%						85.4	%
Commission expense ratio									18.5	%			17.9	%			20.4	%			18.4	%			18.1	%			18.9	%			18.2	%			18.5	%						18.5	%						18.9	%
Other expense ratio									12.1				12.0				12.6				13.4				12.1				12.4				12.1				12.2							12.6							12.6
Statutory expense ratio									30.6	%			29.9	%			33.0	%			31.8	%			30.2	%			31.3	%			30.3	%			30.7	%						31.1	%						31.5	%
GAAP combined ratio
GAAP combined ratio									96.4	%			91.2	%			81.9	%			94.8	%			109.5	%			99.1	%			93.9	%			104.4	%						101.1	%						96.1	%
Contribution from catastrophe losses									8.3				1.2				3.4				8.0				17.8				11.1				4.8				14.6							12.3							10.0
GAAP combined ratio excluding catastrophe losses									88.1	%			90.0	%			78.5	%			86.8	%			91.7	%			88.0	%			89.1	%			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 

 

		Three months ended																																Six months ended								Nine months ended								Twelve months ended
(Dollars 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				6/30/13				6/30/12				9/30/13				9/30/12				12/31/13				12/31/12
Premiums
Agency renewal written premiums										$	602			$	631			$	549			$	557			$	552			$	571			$	1,233			$	1,123							$	1,680						$	2,229
Agency new business written premiums											100				97				96				90				91				75				197				166								256							352
Other written premiums											(24	)			-				(57	)			(28	)			(17	)			(20	)			(24	)			(37	)							(65	)						(122	)
Reported written premiums – statutory*										$	678			$	728			$	588			$	619			$	626			$	626			$	1,406			$	1,252							$	1,871						$	2,459
Unearned premium change											(33	)			(97	)			30				(12	)			(36	)			(58	)			(130	)			(94	)							(106	)						(76	)
Earned premiums										$	645			$	631			$	618			$	607			$	590			$	568			$	1,276			$	1,158							$	1,765						$	2,383
Year over year change %
Agency renewal written premiums											9	%			11	%			7	%			10	%			10	%			5	%			10				8	%							8	%						8	%
Agency new business written premiums											10				29				30				11				12				6				19				9								10							15
Other written premiums											(41	)			100				(36	)			32				61				20				35				46								41							20
Reported written premiums – statutory*											8				16				8				13				17				6				12				11								12							11
Paid losses and loss expenses
Losses paid										$	286			$	297			$	321			$	331			$	320			$	282			$	585			$	602							$	937						$	1,258
Loss expenses paid											68				68				72				67				74				74				135				149								216							288
Loss and loss expenses paid										$	354			$	365			$	393			$	398			$	394			$	356			$	720			$	751							$	1,153						$	1,546
Statutory combined ratio
Loss ratio											54.9	%			47.3	%			40.5	%			49.5	%			59.6	%			48.0	%			51.2	%			54.0	%							52.4	%						49.3	%
Allocated loss expense ratio											0.6				4.3				3.6				4.0				5.0				6.8				2.5				5.8								5.2							4.7
Unallocated loss expense ratio											6.4				6.2				5.6				4.5				5.5				6.3				6.2				5.9								5.4							5.5
Net underwriting expense ratio											31.5				29.0				34.4				33.1				31.7				31.3				30.2				31.5								32.0							32.6
Statutory combined ratio											93.4	%			86.8	%			84.1	%			91.1	%			101.8	%			92.4	%			90.1	%			97.2	%							95.0	%						92.1	%
Contribution from catastrophe losses											7.1				0.4				3.1				7.5				15.2				6.8				3.8				11.2								9.9							8.2
Statutory combined ratio excluding catastrophe losses											86.3	%			86.4	%			81.0	%			83.6	%			86.6	%			85.6	%			86.3	%			86.0	%							85.1	%						83.9	%
Commission expense ratio											17.9	%			16.5	%			20.2	%			18.3	%			17.8	%			17.9	%			17.2	%			17.8	%							18.0	%						18.5	%
Other expense ratio											13.6				12.5				14.2				14.8				13.9				13.4				13.0				13.7								14.0							14.1
Statutory expense ratio											31.5	%			29.0	%			34.4	%			33.1	%			31.7	%			31.3	%			30.2	%			31.5	%							32.0	%						32.6	%
GAAP combined ratio
GAAP combined ratio											94.9	%			90.8	%			82.9	%			90.2	%			103.5	%			94.2	%			92.9	%			98.9	%							95.9	%						92.5	%
Contribution from catastrophe losses											7.1				0.4				3.1				7.5				15.2				6.8				3.8				11.2								9.9							8.2
GAAP combined ratio excluding catastrophe losses											87.8	%			90.4	%			79.8	%			82.7	%			88.3	%			87.4	%			89.1	%			87.7	%							86.0	%						84.3	%

 

*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.
*nm - Not meaningful
* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

 

 

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Personal Lines

 

		Three months ended																																Six months ended								Nine months ended								Twelve months ended
(Dollars 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				6/30/13				6/30/12				9/30/13				9/30/12				12/31/13				12/31/12
Premiums
Agency renewal written premiums										$	251			$	195			$	203			$	231			$	227			$	175			$	446			$	402							$	633							$	836
Agency new business written premiums											30				28				27				31				29				24				58				53								84								111
Other written premiums											(8	)			(8	)			(8	)			(9	)			(6	)			(6	)			(16	)			(12	)							(21	)							(29	)
Reported written premiums – statutory*										$	273			$	215			$	222			$	253			$	250			$	193			$	488			$	443							$	696							$	918
Unearned premium change											(36	)			16				4				(34	)			(36	)			16				(20	)			(20	)							(54	)							(50	)
Earned premiums										$	237			$	231			$	226			$	219			$	214			$	209			$	468			$	423							$	642							$	868
Year over year change %
Agency renewal written premiums											11	%			11	%			10	%			11	%			11	%			12	%			11	%			11	%							11	%							11	%
Agency new business written premiums											3				17				23				24				12				9				9				10								15								17
Other written premiums											(33	)			(33	)			27				25				71				(20	)			(33	)			54								45								41
Reported written premiums – statutory*											9				11				13				14				19				12				10				16								15								15
Paid losses and loss expenses
Losses paid										$	141			$	122			$	133			$	169			$	151			$	130				261			$	280							$	450							$	583
Loss expenses paid											19				19				22				19				21				15				39				37								54								76
Loss and loss expenses paid										$	160			$	141			$	155			$	188			$	172			$	145				300			$	317							$	504							$	659
Statutory combined ratio
Loss ratio											60.6	%			53.6	%			43.3	%			60.7	%			87.2	%			76.2	%			57.2	%			81.8	%							74.6	%							66.4	%
Allocated loss expense ratio											1.5				1.4				1.7				1.9				1.9				1.8				1.5				1.8								1.8								1.8
Unallocated loss expense ratio											7.4				6.3				6.5				6.9				8.8				5.6				6.8				7.2								7.2								7.0
Net underwriting expense ratio											28.5				32.8				29.2				28.8				26.5				31.2				30.4				28.6								28.6								28.8
Statutory combined ratio											98.0				94.1				80.7	%			98.3				124.4				114.8				95.9				119.4	%							112.2	%							104.0	%
Contribution from catastrophe losses											12.6				3.5				4.4				10.2				26.6				23.5				8.1				25.0								19.9								15.9
Statutory combined ratio excluding catastrophe losses											85.4	%			90.6	%			76.3	%			88.1	%			97.8	%			91.3	%			87.8	%			94.4	%							92.3	%							88.1	%
Commission expense ratio											19.0	%			21.7	%			20.4	%			17.9	%			18.2	%			21.3	%			20.2	%			19.6	%							18.9	%							19.3	%
Other expense ratio											9.5				11.1				8.8				10.9				8.3				9.9				10.2				9.0								9.7								9.5
Statutory expense ratio											28.5	%			32.8	%			29.2	%			28.8	%			26.5	%			31.2	%			30.4	%			28.6	%							28.6	%							28.8	%
GAAP combined ratio
GAAP combined ratio											100.4	%			91.6	%			80.0	%			105.7	%			126.1	%			110.9	%			96.1	%			118.6	%							114.2	%							105.3	%
Contribution from catastrophe losses											12.6				3.5				4.4				10.2				26.6				23.5				8.1				25.0								19.9								15.9
GAAP combined ratio excluding catastrophe losses											87.8	%			88.1	%			75.6	%			95.5	%			99.5	%			87.4	%			88.0	%			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 

 

			Three months ended																															Six months ended								Nine months ended								Twelve months ended
(Dollars 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				6/30/13				6/30/12				9/30/13				9/30/12				12/31/13			12/31/12
Premiums
Agency renewal written premiums										$	26			$	19			$	19			$	19			$	19			$	16			$	45			$	35							$	54						$	73
Agency new business written premiums											9				10				9				9				11				9				19				20								29							38
Other written premiums											(2	)			(2	)			(1	)			(1	)			(3	)			(1	)			(4	)			(4	)							(5	)						(6	)
Reported written premiums – statutory*										$	33			$	27			$	27			$	27			$	27			$	24			$	60			$	51							$	78						$	105
Unearned premium change											(5	)			-				(2	)			(2	)			(5	)			(3	)			(5	)			(8	)							(10	)						(12	)
Earned premiums										$	28			$	27			$	25			$	25			$	22			$	21			$	55			$	43							$	68						$	93
Year over year change %
Agency renewal written premiums											37	%			19	%			46	%			36	%			58	%			60	%			29	%			59	%							50	%						49	%
Agency new business written premiums											(18	)			11				29				0				10				0				(5	)			5								4							9
Other written premiums											33				(100	)			50				0				(200	)			0				0				(100	)							(67	)						(20	)
Reported written premiums – statutory*											22				13				50				23				29				33				18				31								28							33
Paid losses and loss expenses
Losses paid										$	4			$	5			$	5			$	5			$	4			$	3			$	9			$	7							$	12						$	17
Loss expenses paid											3				2				2				2				2				1				5				3								5							7
Loss and loss expenses paid										$	7			$	7			$	7			$	7			$	6			$	4			$	14			$	10							$	17						$	24
Statutory combined ratio
Loss ratio											52.1	%			47.2	%			19.5	%			64.5	%			59.8	%			65.7	%			49.7	%			62.7	%							63.3	%						51.5	%
Allocated loss expense ratio											9.3				11.9				14.0				11.9				15.1				10.6				10.6				12.8								12.6							13.0
Unallocated loss expense ratio											5.5				6.1				4.7				5.8				3.9				5.3				5.8				4.6								5.0							4.9
Net underwriting expense ratio											30.9				33.3				32.3				30.9				30.6				31.9				32.0				31.2								31.1							31.4
Statutory combined ratio											97.8				98.5				70.5				113.1				109.4				113.5	%			98.1	%			111.3	%							112.0	%						100.8	%
Contribution from catastrophe losses											1.9				0.4				1.2				0.7				3.5				3.7				1.2				3.5								2.5							2.2
Statutory combined ratio excluding catastrophe losses											95.9	%			98.1	%			69.3	%			112.4	%			105.9	%			109.8	%			96.9	%			107.8	%							109.5	%						98.6	%
Commission expense ratio											26.3	%			26.9	%			26.4	%			25.4	%			25.3	%			26.5	%			26.6	%			25.8	%							25.7	%						25.9	%
Other expense ratio											4.6				6.4				5.9				5.5				5.3				5.4				5.4				5.4								5.4							5.5
Statutory expense ratio											30.9	%			33.3	%			32.3	%			30.9	%			30.6	%			31.9	%			32.0	%			31.2	%							31.1	%						31.4	%
GAAP combined ratio
GAAP combined ratio											98.7	%			98.0	%			71.5	%			111.5	%			110.7	%			113.6	%			98.4	%			112.1	%							111.9	%						101.0	%
Contribution from catastrophe losses											1.9				0.4				1.2				0.7				3.5				3.7				1.2				3.5								2.5							2.2
GAAP combined ratio excluding catastrophe losses											96.8	%			97.6	%			70.3	%			110.8	%			107.2	%			109.9	%			97.2	%			108.6	%							109.4	%						98.8	%

 

*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.
*nm - Not meaningful
* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

 

 

 

The Cincinnati Life Insurance Company

Statutory Statements of Income

 

			For the Three Months Ended June 30,																For the Six Months Ended June 30,
(Dollars in millions)			2013				2012				Change				% Change				2013				2012				Change				% Change
Net premiums written			$	61			$	63			$	(2	)			(3	)		$	119			$	127			$	(8	)			(6	)
Net investment income				36				35				1				3				71				69				2				3
Amortization of interest maintenance reserve				1				-				1				nm				1				-				1				nm
Commissions and expense allowances on reinsurance ceded				1				1				-				0				3				3				-				0
Income from fees associated with Separate Accounts				1				-				1				nm				2				-				2				nm
Total revenues			$	100			$	99			$	1				1			$	196			$	199			$	(4	)			(2	)
Death benefits and matured endowments			$	17			$	17			$	-				0			$	36			$	34			$	2				6
Annuity benefits				11				14				(3	)			(21	)			26				27				(1	)			(4	)
Disability benefits and benefits under accident and health contracts				1				1				-				0				1				1				-				0
Surrender benefits and group conversions				5				6				(1	)			(17	)			12				12				-				0
Interest and adjustments on deposit-type contract funds				3				2				1				50				5				5				-				0
Increase in aggregate reserves for life and accident and health contracts				44				40				4				10				82				83				(1	)			(1	)
Total benefit expenses			$	81			$	80			$	1				1			$	162			$	162			$	-				0
Commissions			$	9			$	9			$	-				0			$	19			$	19			$	-				0
General insurance expenses and taxes				11				10				1				10				22				21				1				5
Increase in loading on deferred and uncollected premiums				(2	)			(1	)			(1	)			(100	)			(4	)			(1	)			(3	)			(300	)
Total operating expenses			$	18			$	18			$	-				0			$	37			$	39			$	(2	)			(5	)
Federal and foreign income tax benefit				-				-				-				-				-				(1	)			1				nm
Net income (loss) from operations before realized capital gains			$	1			$	1			$	-				0			$	(3	)		$	(1	)		$	(2	)			(200	)
Net realized gains net of capital gains tax				1				1				-				0				1				1				-				0
Net income (loss) (statutory)			$	2			$	2			$	-				0			$	(2	)		$	-			$	(2	)			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.