Form 8-K CINCINNATI FINANCIAL For: Apr 28

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April 28, 2015 4:07 PM EDT

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report: April 28, 2015 (Date of earliest event reported)

CINCINNATI FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)

Ohio	0-4604	31‑0746871
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

6200 S. Gilmore Road, Fairfield, Ohio		45014‑5141
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (513) 870-2000

N/A (Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))

Item 2.02 Results of Operations and Financial Condition.

On April 28, 2015, Cincinnati Financial Corporation issued the attached news release titled “Cincinnati Financial Reports First-Quarter 2015 Results,” furnished as Exhibit 99.1 hereto and incorporated herein by reference. On April 28, 2015, the company also distributed the attached information titled “Supplemental Financial Data,” furnished as Exhibit 99.2 hereto and incorporated herein by reference.

Item 7.01 Regulation FD Disclosure

On April 28, 2015, Cincinnati Financial Corporation issued the attached news release titled “The Cincinnati Insurance Company Announces Preliminary Plans to Expand Assumed Reinsurance Operations,” furnished as Exhibit 99.3 hereto and incorporated herein by reference.

This report should not be deemed an admission as to the materiality of any information contained in the news releases or supplemental financial data.

In accordance with general instruction B.2 of Form 8-K, the information furnished in this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits.

Exhibit 99.1 – News release dated April 28, 2015, “Cincinnati Financial Reports First-Quarter 2015 Results”

Exhibit 99.2 – Supplemental Financial Data for the period ending March 31, 2015 distributed April 28, 2015.

Exhibit 99.3 – News release dated April 28, 2015, “The Cincinnati Insurance Company Announces Preliminary Plans to Expand Assumed Reinsurance Operations”

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



	CINCINNATI FINANCIAL CORPORATION



Date: April 28, 2015	/S/Michael J. Sewell
	Michael J. Sewell, CPA
	Chief Financial Officer, Senior Vice President and Treasurer



		The Cincinnati Insurance Company n The Cincinnati Indemnity Company The Cincinnati Casualty Company n The Cincinnati Specialty Underwriters Insurance Company The Cincinnati Life Insurance Company n CFC Investment Company n CSU Producer Resources Inc.

Investor Contact: Dennis E. McDaniel, 513-870-2768

[email protected]

Media Contact: Betsy E. Ertel, 513-603-5323

[email protected]

Cincinnati Financial Reports First-Quarter 2015 Results

Cincinnati, April 28, 2015 – Cincinnati Financial Corporation (Nasdaq: CINF) today reported:


•	First-quarter 2015 net income of $128 million, or 77 cents per share, compared with $91 million, or 55 cents per share, in the first quarter of 2014.


•	$20 million or 26 percent rise in operating income* to $97 million, or 59 cents per share, up from $77 million, or 46 cents per share, in the first quarter of last year.


•	$37 million increase in first-quarter 2015 net income reflected the after-tax net effect of two primary items: $18 million improvement in the contribution from property casualty underwriting, including a favorable effect of $29 million from lower natural catastrophe losses; and a $17 million increase from net realized investment gains.


•	$40.22 book value per share at March 31, 2015, up 8 cents or less than 1 percent since December 31, 2014.


•	1.3 percent value creation ratio for the first three months of 2015, compared with 2.6 percent for the same period of 2014.

Financial Highlights



(Dollars in millions except per share data)	Three months ended March 31,
(Dollars in millions except per share data)		2015		2014		% Change
Revenue Data
Earned premiums		$	1,094	$	1,027	7
Investment income, net of expenses		139		135		3
Total revenues		1,285		1,189		8
Income Statement Data
Net income		$	128	$	91	41
Realized investment gains, net		31		14		121
Operating income*		$	97	$	77	26
Per Share Data (diluted)
Net income		$	0.77	$	0.55	40
Realized investment gains, net		0.18		0.09		100
Operating income*		$	0.59	$	0.46	28

Book value		$	40.22	$	37.73	7
Cash dividend declared		$	0.46	$	0.44	5
Diluted weighted average shares outstanding		165.6		165.0		0


*	The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures defines and reconciles measures presented in this release that are not based on U.S. Generally Accepted Accounting Principles.


**	Forward-looking statements and related assumptions are subject to the risks outlined in the company’s safe harbor statement.

CINF 1Q15 Release 1

Insurance Operations First-Quarter Highlights


•	97.5 percent first-quarter 2015 property casualty combined ratio, improved from 100.3 percent for

first-quarter 2014.


•	3 percent growth in first-quarter net written premiums, largely reflecting price increases.


•	$116 million first-quarter 2015 property casualty new business written premiums, down $7 million. Agencies appointed since the beginning of 2014 contributed $6 million or 5 percent of total new business written premiums.


•	5 cents per share contribution from life insurance operating income, down 1 cent from first-quarter 2014.

Investment and Balance Sheet Highlights


•	3 percent or $4 million increase in first-quarter 2015 pretax investment income, with strong growth in stock portfolio dividends and slight growth in interest income.


•	1 percent three-month increase in fair value of total investments plus cash at March 31, 2015, including a 1 percent increase for the bond portfolio and a 1 percent decrease for the equity portfolio.


•	$1.819 billion parent company cash and marketable securities at March 31, 2015, up 2.0 percent from

year-end 2014.

Steady Contributions From Underwriting and Investments

Steven J. Johnston, president and chief executive officer, commented: “Consolidated operating earnings increased 26 percent over the same quarter a year ago, reaching $97 million on steady contributions from our underwriting and investment operations. Pretax investment income rose $4 million in the first quarter, powered by 13 percent growth in dividends from high-quality common stocks in our equity portfolio. Interest income from the bond portfolio rose 1 percent.

“Turning to insurance operations, our combined ratio improved to 97.5 percent, down 2.8 points compared with the first three months of 2014. Lower catastrophe and noncatastrophe weather-related losses led to $27 million of first-quarter property casualty underwriting profit before taxes – a nice improvement from our $1 million underwriting loss for the same period of 2014.”

Maintaining Underwriting and Pricing Discipline

“Consolidated property casualty net written premiums grew 3 percent for the first three months of 2015, mainly due to pricing increases on renewal accounts. Commercial lines policies renewed with average percentage increases near the middle of the low-single-digit range, while our personal lines and excess and surplus lines policies renewed with average percentage increases in the mid-single-digit range.

“We are encouraged by the incremental progress of our strategic initiatives to improve pricing precision and adequacy, mitigate losses and achieve efficiencies. Our increasing expertise in pricing segmentation gives us the confidence we need to defend and retain our adequately priced accounts while walking away from those we believe to be underpriced.

“As competition heats up, we’re focused on maintaining our underwriting and pricing discipline. While that focus may temporarily slow our march toward $5 billion in direct written premium, other advantages will continue to support our continued steady, profitable growth: the strong front-line underwriting of our independent insurance agencies; our program of property inspections; our three-year policies for qualifying commercial accounts; and our expanding product suite for high net worth personal lines clients.”

Continued Balance Sheet Strength

“We continued to build on our record of 26 consecutive years of overall favorable reserve development with first quarter net favorable reserve development on prior accident years. The combined ratio effect for the quarter was similar to full-year 2014, as the strengthening of auto reserves was offset by favorable development for our workers’ compensation and main property lines of business. At the same time, we also took action during the quarter to further strengthen the balance sheet, a result of our reserving discipline. We prudently strengthened reserves for our commercial and personal auto lines of business to address rising loss cost trends for auto-related claims. For our other lines of business in total, we essentially maintained our actuarial best estimate of ultimate loss and loss expense ratios for all accident years in aggregate at levels consistent with our year-end 2014 estimates.

“Book value per share rose to $40.22 driven by the contribution of our insurance operations, and consolidated cash and total investments topped $15 billion. This ample capital allows us to execute on our long-term strategies and, at the same time, continue to pay dividends to shareholders through the normal variability of investment and insurance markets.

“In January, the board of directors expressed its confidence in our financial strength by again raising the indicated cash dividend. Our value creation ratio, which considers those dividends as well as growth in book value, was 1.3 percent for the first quarter. Our associates are determined to do things just a little better every day, strengthening our ability to compete by enhancing the advantages of our local independent agencies. That has been and continues to be our plan for creating shareholder value far into the future.”

CINF 1Q15 Release 2

Insurance Operations Highlights

Consolidated Property Casualty Insurance Results



(Dollars in millions)	Three months ended March 31,
	2015			2014			% Change
Earned premiums	$	1,041		$	979		6
Fee revenues	2			1			100
Total revenues	1,043			980			6

Loss and loss expenses	689			676			2
Underwriting expenses	327			305			7
Underwriting profit (loss)	$	27		$	(1	)	nm

Ratios as a percent of earned premiums:							Pt. Change
Loss and loss expenses	66.1		%	69.1		%	(3.0	)
Underwriting expenses	31.4			31.2			0.2
Combined ratio	97.5		%	100.3		%	(2.8	)

							% Change
Agency renewal written premiums	$	983		$	956		3
Agency new business written premiums	116			123			(6	)
Other written premiums	(33		)	(42		)	21
Net written premiums	$	1,066		$	1,037		3

Ratios as a percent of earned premiums:							Pt. Change
Current accident year before catastrophe losses	63.1		%	62.3		%	0.8
Current accident year catastrophe losses	5.2			9.9			(4.7	)
Prior accident years before catastrophe losses	(1.1		)	(2.1		)	1.0
Prior accident years catastrophe losses	(1.1		)	(1.0		)	(0.1	)
Loss and loss expense ratio	66.1		%	69.1		%	(3.0	)

Current accident year combined ratio before catastrophe losses	94.5		%	93.5		%	1.0


•	$29 million or 3 percent growth of first-quarter 2015 property casualty net written premiums, largely due to price increases.

•

$7 million or 6 percent decrease in first-quarter 2015 new business premiums written by agencies. Key factors affecting the decrease included strong competition, disciplined pricing and the impact of underwriting profitability initiatives, partially offset by contributions from new agency appointments and other growth initiatives. The net amount included a $6 million increase in standard market property casualty production from agencies appointed since the beginning of 2014 and an increase of $1 million for excess and surplus lines.


•	1,475 agency relationships in 1,891 reporting locations marketing property casualty insurance products at March 31, 2015, compared with 1,466 agency relationships in 1,884 reporting locations at year-end 2014. During the first quarter of 2015, 23 new agency appointments were made.


•	2.8 percentage-point first-quarter 2015 combined ratio improvement, including decreases of 4.8 points for losses from natural catastrophes and 3.1 points from noncatastrophe weather-related losses. Those decreases were partially offset by a 2.8 point increase from lower underwriting profit for our auto lines of business, largely due to reserve strengthening.


•	2.2 percentage-point first-quarter 2015 benefit from favorable prior accident year reserve development of $22 million, compared with 3.1 points or $29 million for first-quarter 2014.


•	0.2 percentage-point increase in the first-quarter underwriting expense ratio, largely due to strategic investments to enhance underwriting expertise plus an increase in premium taxes and related fees that offset higher earned premiums and ongoing expense management efforts.

CINF 1Q15 Release 3

Commercial Lines Insurance Results



(Dollars in millions)	Three months ended March 31,
	2015			2014			% Change
Earned premiums	$	733		$	692		6
Fee revenues	1			1			0
Total revenues	734			693			6

Loss and loss expenses	474			469			1
Underwriting expenses	234			222			5
Underwriting profit	$	26		$	2		nm

Ratios as a percent of earned premiums:							Pt. Change
Loss and loss expenses	64.7		%	67.9		%	(3.2	)
Underwriting expenses	31.9			32.0			(0.1	)
Combined ratio	96.6		%	99.9		%	(3.3	)

							% Change
Agency renewal written premiums	$	730		$	713		2
Agency new business written premiums	79			90			(12	)
Other written premiums	(26		)	(32		)	19
Net written premiums	$	783		$	771		2

Ratios as a percent of earned premiums:							Pt. Change
Current accident year before catastrophe losses	61.3		%	59.4		%	1.9
Current accident year catastrophe losses	5.3			8.9			(3.6	)
Prior accident years before catastrophe losses	(0.6		)	0.0			(0.6	)
Prior accident years catastrophe losses	(1.3		)	(0.4		)	(0.9	)
Loss and loss expense ratio	64.7		%	67.9		%	(3.2	)

Current accident year combined ratio before catastrophe losses	93.2		%	91.4		%	1.8


•	$12 million or 2 percent increase in first-quarter 2015 commercial lines net written premiums, as higher renewal written premiums offset lower new business written premiums.


•	$17 million rise in first-quarter renewal written premiums included commercial lines renewal pricing changes, with the percentage of increase in the first quarter of 2015 averaging near the middle of the low-single-digit range.


•	$11 million or 12 percent decrease in first-quarter 2015 new business written by agencies, reflecting underwriting and pricing discipline in a competitive market environment.


•	3.3 percentage-point first-quarter 2015 combined ratio improvement, driven by a 4.5 point decrease for losses from natural catastrophes.


•	1.9 percentage-point first-quarter 2015 benefit from favorable prior accident year reserve development of $14 million, compared with 0.4 points or $3 million for first-quarter 2014.

CINF 1Q15 Release 4

Personal Lines Insurance Results



(Dollars in millions)	Three months ended March 31,
	2015			2014			% Change
Earned premiums	$	268		$	254		6
Fee revenues	1			—			nm
Total revenues	269			254			6

Loss and loss expenses	191			188			2
Underwriting expenses	81			73			11
Underwriting loss	$	(3	)	$	(7	)	57

Ratios as a percent of earned premiums:							Pt. Change
Loss and loss expenses	71.0		%	74.1		%	(3.1	)
Underwriting expenses	30.4			28.9			1.5
Combined ratio	101.4		%	103.0		%	(1.6	)

							% Change
Agency renewal written premiums	$	223		$	218		2
Agency new business written premiums	24			21			14
Other written premiums	(6		)	(8		)	25
Net written premiums	$	241		$	231		4

Ratios as a percent of earned premiums:							Pt. Change
Current accident year before catastrophe losses	66.8		%	67.8		%	(1.0	)
Current accident year catastrophe losses	5.6			13.3			(7.7	)
Prior accident years before catastrophe losses	(0.7		)	(4.5		)	3.8
Prior accident years catastrophe losses	(0.7		)	(2.5		)	1.8
Loss and loss expense ratio	71.0		%	74.1		%	(3.1	)

Current accident year combined ratio before catastrophe losses	97.2		%	96.7		%	0.5


•	$10 million or 4 percent increase in first-quarter 2015 personal lines net written premiums, including growth in new business and higher renewal written premiums that benefited from rate increases.


•	$3 million or 14 percent increase in first-quarter new business written by agencies, with growth in nearly 80 percent of the 31 states where we market personal lines policies.


•	1.6 percentage-point first-quarter 2015 combined ratio improvement, driven by a 5.9 point decrease for losses from natural catastrophes that was largely offset by less benefit from favorable prior accident year reserve development before catastrophe losses.


•	1.4 percentage-point first-quarter 2015 benefit from favorable prior accident year reserve development of $3 million, compared with 7.0 points or $17 million for first-quarter 2014.

CINF 1Q15 Release 5

Excess and Surplus Lines Insurance Results



(Dollars in millions)	Three months ended March 31,
	2015			2014			% Change
Earned premiums	$	40		$	33		21

Loss and loss expenses	24			19			26
Underwriting expenses	12			10			20
Underwriting profit	$	4		$	4		0

Ratios as a percent of earned premiums:							Pt. Change
Loss and loss expenses	59.4		%	56.6		%	2.8
Underwriting expenses	28.9			30.3			(1.4	)
Combined ratio	88.3		%	86.9		%	1.4

							% Change
Agency renewal written premiums	$	30		$	25		20
Agency new business written premiums	13			12			8
Other written premiums	(1		)	(2		)	50
Net written premiums	$	42		$	35		20

Ratios as a percent of earned premiums:							Pt. Change
Current accident year before catastrophe losses	72.1		%	80.6		%	(8.5	)
Current accident year catastrophe losses	1.2			3.0			(1.8	)
Prior accident years before catastrophe losses	(13.6		)	(27.1		)	13.5
Prior accident years catastrophe losses	(0.3		)	0.1			(0.4	)
Loss and loss expense ratio	59.4		%	56.6		%	2.8

Current accident year combined ratio before catastrophe losses	101.0		%	110.9		%	(9.9	)


•	$7 million or 20 percent growth in first-quarter 2015 excess and surplus lines net written premiums, matching the growth percentage reported for full-year 2014. Average renewal pricing for the quarter increased near the low end of the mid-single-digit range.


•	$1 million or 8 percent increase in first-quarter new business written by agencies, rising in part due to enhanced service to agencies provided by recent-quarter additions to our excess and surplus lines field staff.


•	1.4 percentage-point first-quarter 2015 combined ratio increase, including a lower ratio for current accident year loss experience that was offset by less benefit from favorable prior accident year reserve development.


•	13.9 percentage-point first-quarter 2015 benefit from favorable prior accident year reserve development of $5 million, compared with 27.0 points or $9 million for first-quarter 2014.

CINF 1Q15 Release 6

Life Insurance Results



(Dollars in millions)	Three months ended March 31,
(Dollars in millions)	2015		2014		% Change
Term life insurance	$	34	$	32	6
Universal life insurance	10		8		25
Other life insurance, annuity, and disability income products	9		8		13
Earned premiums	53		48		10
Investment income, net of expenses	37		35		6
Other income	1		2		(50	)
Total revenues, excluding realized investment gains and losses	91		85		7
Contract holders’ benefits incurred	60		56		7
Underwriting expenses incurred	18		15		20
Total benefits and expenses	78		71		10
Net income before income tax and realized investment gains, net	13		14		(7	)
Income tax	5		5		0
Net income before realized investment gains, net	$	8	$	9	(11	)


•	$5 million or 10 percent increase in first-quarter 2015 earned premiums, including a 6 percent increase for term life insurance, our largest life insurance product line.


•	$1 million decrease to $8 million in three-month 2015 fixed annuity deposits received. Cincinnati Life does not offer variable or indexed annuities.


•	$1 million decrease in three-month 2015 profit, primarily due to the unfavorable effect of unlocking of interest rates and other actuarial assumptions.


•	$23 million or 3 percent three-month 2015 increase to $927 million in GAAP shareholders’ equity for The Cincinnati Life Insurance Company, largely reflecting an increase in fair value of the fixed-maturity portfolio due to a decrease in interest rates.

CINF 1Q15 Release 7

Investment and Balance Sheet Highlights

Investments Results



(Dollars in millions)	Three months ended March 31,
(Dollars in millions)	2015			2014			% Change
Investment income, net of expenses	$	139		$	135		3
Investment interest credited to contract holders’	(21		)	(21		)	0
Realized investment gains, net	47			22			114
Investments profit	$	165		$	136		21

Investment income:
Interest	$	105		$	104		1
Dividends	36			32			13
Other	—			1			(100	)
Less investment expenses	2			2			0
Investment income, before income taxes	139			135			3
Less income taxes	33			32			3
Total investment income	$	106		$	103		3

Investment returns:
Effective tax rate	23.6		%	24.0		%
Average invested assets plus cash and cash equivalents	$	14,435		$	13,571
Average yield pretax	3.85		%	3.98		%
Average yield after-tax	2.94			3.04
Fixed-maturity returns:
Effective tax rate	27.0		%	27.1		%
Average amortized cost	$	8,929		$	8,624
Average yield pretax	4.70		%	4.82		%
Average yield after-tax	3.43			3.52


•	$4 million or 3 percent rise in first-quarter 2015 pretax investment income, including 13 percent growth in equity portfolio dividends and 1 percent growth in interest income.


•	$43 million or 2 percent first-quarter 2015 decrease in pretax net unrealized investment portfolio gains, including a $89 million decrease for the equity portfolio. The total decrease included the offsetting effect of $46 million of pretax net realized gains from investment portfolio security sales or called bonds during the first quarter of 2015, including $43 million from the equity portfolio.

CINF 1Q15 Release 8

Balance Sheet Highlights



(Dollars in millions except share data)	At March 31,			At December 31,
(Dollars in millions except share data)	2015			2014
Balance sheet data:
Total investments	$	14,476		$	14,386
Total assets	18,897			18,753
Short-term debt	49			49
Long-term debt	791			791
Shareholders’ equity	6,608			6,573
Book value per share	40.22			40.14
Debt-to-total-capital ratio	11.3		%	11.3		%


•	$15.116 billion in consolidated cash and total investments at March 31, 2015, up 1 percent from $14.977 billion at year-end 2014.


•	$9.596 billion bond portfolio at March 31, 2015, with an average rating of A2/A. Fair value increased $136 million or 1 percent during the first quarter of 2015.


•	$4.789 billion equity portfolio was 33.1 percent of total investments, including $2.041 billion in pretax net unrealized gains at March 31, 2015. First-quarter 2015 decrease in fair value of $69 million or 1 percent.


•	$4.436 billion of statutory surplus for the property casualty insurance group at March 31, 2015, down $36 million from $4.472 billion at year-end 2014, after declaring $100 million in dividends to the parent company. The ratio of net written premiums to property casualty statutory surplus for the 12 months ended March 31, 2015, was 0.9-to-1, unchanged from year-end 2014.


•	Value creation ratio of 1.3 percent for first three months of 2015 included 1.4 percent from net income before net realized investment gains and 0.1 percent from investment portfolio realized gains and changes in unrealized gains.

For additional information or to register for our conference call webcast, please visit cinfin.com/investors.

About Cincinnati Financial

Cincinnati Financial Corporation offers business, home and auto insurance, our main business, through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life and disability income insurance, fixed annuities and surplus lines property and casualty insurance. For additional information about the company, please visit cinfin.com.

Mailing Address: Street Address:

P.O. Box 145496 6200 South Gilmore Road

Cincinnati, Ohio 45250-5496 Fairfield, Ohio 45014-5141

CINF 1Q15 Release 9

Safe Harbor Statement

This is our “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995. Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by the forward-looking statements in this report. Some of those risks and uncertainties are discussed in our 2014 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 33.

Factors that could cause or contribute to such differences include, but are not limited to:


•	Unusually high levels of catastrophe losses due to risk concentrations, changes in weather patterns, environmental events, terrorism incidents or other causes


•	Increased frequency and/or severity of claims or development of claims that are unforeseen at the time of policy issuance


•	Inadequate estimates or assumptions used for critical accounting estimates


•	Declines in overall stock market values negatively affecting the company’s equity portfolio and book value


•	Domestic and global events resulting in capital market or credit market uncertainty, followed by prolonged periods of economic instability or recession, that lead to:


◦	Significant or prolonged decline in the value of a particular security or group of securities and impairment of the asset(s)


◦	Significant decline in investment income due to reduced or eliminated dividend payouts from a particular security or group of securities


◦	Significant rise in losses from surety and director and officer policies written for financial institutions or other insured entities


•	Prolonged low interest rate environment or other factors that limit the company’s ability to generate growth in investment income or interest rate fluctuations that result in declining values of fixed-maturity investments, including declines in accounts in which we hold bank-owned life insurance contract assets


•	Recession or other economic conditions resulting in lower demand for insurance products or increased payment delinquencies


•	Difficulties with technology or data security breaches, including cyberattacks, that could negatively affect our ability to conduct business and our relationships with agents, policyholders and others


•	Disruption of the insurance market caused by technology innovations such as driverless cars that could decrease consumer demand for insurance products


•	Delays or performance inadequacies from ongoing development and implementation of underwriting and pricing methods, including telematics and other usage-based insurance methods, or technology projects and enhancements expected to increase our pricing accuracy, underwriting profit and competitiveness


•	Increased competition that could result in a significant reduction in the company’s premium volume


•	Changing consumer insurance-buying habits and consolidation of independent insurance agencies that could alter our competitive advantages


•	Inability to obtain adequate reinsurance on acceptable terms, amount of reinsurance purchased, financial strength of reinsurers and the potential for nonpayment or delay in payment by reinsurers


•	Inability to defer policy acquisition costs for any business segment if pricing and loss trends would lead management to conclude that segment could not achieve sustainable profitability


•	Inability of our subsidiaries to pay dividends consistent with current or past levels


•	Events or conditions that could weaken or harm the company’s relationships with its independent agencies and hamper opportunities to add new agencies, resulting in limitations on the company’s opportunities for growth, such as:


◦	Downgrades of the company’s financial strength ratings


◦	Concerns that doing business with the company is too difficult


◦	Perceptions that the company’s level of service, particularly claims service, is no longer a distinguishing characteristic in the marketplace


◦	Inability or unwillingness to nimbly develop and introduce coverage product updates and innovations that our competitors offer and consumers expect to find in the marketplace


•	Actions of insurance departments, state attorneys general or other regulatory agencies, including a change to a federal system of regulation from a state-based system, that:


◦	Impose new obligations on us that increase our expenses or change the assumptions underlying our critical accounting estimates


◦	Place the insurance industry under greater regulatory scrutiny or result in new statutes, rules and regulations


◦	Restrict our ability to exit or reduce writings of unprofitable coverages or lines of business


◦	Add assessments for guaranty funds, other insurance‑related assessments or mandatory reinsurance arrangements; or that impair our ability to recover such assessments through future surcharges or other rate changes


◦	Increase our provision for federal income taxes due to changes in tax law


◦	Increase our other expenses

CINF 1Q15 Release 10


◦	Limit our ability to set fair, adequate and reasonable rates


◦	Place us at a disadvantage in the marketplace


◦	Restrict our ability to execute our business model, including the way we compensate agents


•	Adverse outcomes from litigation or administrative proceedings


•	Events or actions, including unauthorized intentional circumvention of controls, that reduce the company’s future ability to maintain effective internal control over financial reporting under the Sarbanes-Oxley Act of 2002


•	Unforeseen departure of certain executive officers or other key employees due to retirement, health or other causes that could interrupt progress toward important strategic goals or diminish the effectiveness of certain longstanding relationships with insurance agents and others


•	Events, such as an epidemic, natural catastrophe or terrorism, that could hamper our ability to assemble our workforce at our headquarters location

Further, the company’s insurance businesses are subject to the effects of changing social, global, economic and regulatory environments. Public and regulatory initiatives have included efforts to adversely influence and restrict premium rates, restrict the ability to cancel policies, impose underwriting standards and expand overall regulation. The company also is subject to public and regulatory initiatives that can affect the market value for its common stock, such as measures affecting corporate financial reporting and governance. The ultimate changes and eventual effects, if any, of these initiatives are uncertain.

* * *

CINF 1Q15 Release 11

Cincinnati Financial Corporation
Condensed Consolidated Balance Sheets and Statements of Income (unaudited)



(Dollars in millions)	March 31,				December 31,
		2015				2014
Assets
Investments		$	14,476			$	14,386
Cash and cash equivalents		640				591
Premiums receivable		1,433				1,405
Reinsurance recoverable		539				545
Deferred policy acquisition costs		571				578
Other assets		1,238				1,248
Total assets		$	18,897			$	18,753

Liabilities
Insurance reserves		$	7,137			$	6,982
Unearned premiums		2,109				2,082
Deferred income tax		824				840
Long-term debt and capital lease obligations		825				827
Other liabilities		1,394				1,449
Total liabilities		12,289				12,180

Shareholders’ Equity
Common stock and paid-in capital		1,607				1,611
Retained earnings		4,557				4,505
Accumulated other comprehensive income		1,716				1,744
Treasury stock		(1,272		)		(1,287		)
Total shareholders’ equity		6,608				6,573
Total liabilities and shareholders’ equity		$	18,897			$	18,753

(Dollars in millions except per share data)		Three months ended March 31,
		2015				2014
Revenues
Earned premiums		$	1,094			$	1,027
Investment income, net of expenses		139				135
Realized investment gains, net		47				22
Other revenues		5				5
Total revenues		1,285				1,189

Benefits and Expenses
Insurance losses and policyholder benefits		749				732
Underwriting, acquisition and insurance expenses		345				320
Interest expense		13				14
Other operating expenses		4				4
Total benefits and expenses		1,111				1,070

Income Before Income Taxes		174				119

Provision for Income Taxes		46				28

Net Income		$	128			$	91

Per Common Share:
Net income—basic		$	0.78			$	0.56
Net income—diluted		0.77				0.55

CINF 1Q15 Release 12

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

(See attached tables for reconciliations; additional prior-period reconciliations available at cinfin.com/investors.)

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

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

•

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

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

•

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

•

Statutory accounting rules: For public reporting, insurance companies prepare financial statements in accordance with GAAP. However, insurers also must calculate certain data according to statutory accounting rules as defined in the NAIC’s Accounting Practices and Procedures Manual, which may be, and has been, modified by various state insurance departments. Statutory data is publicly available, and various organizations use it to calculate aggregate industry data, study industry trends and compare insurance companies.

•

Written premium: Under statutory accounting rules, property casualty written premium is the amount recorded for policies issued and recognized on an annualized basis at the effective date of the policy. Management analyzes trends in written premium to assess business efforts. Earned premium, used in both statutory and GAAP accounting, is calculated ratably over the policy term. The difference between written and earned premium is unearned premium.

CINF 1Q15 Release 13

Cincinnati Financial Corporation

Balance Sheet Reconciliation



(Dollars are per share)	Three months ended March 31,
(Dollars are per share)	2015			2014
Value creation ratio:
End of period book value	$	40.22		$	37.73
Less beginning of period book value	40.14			37.21
Change in book value	0.08			0.52
Dividend declared to shareholders	0.46			0.44
Total value creation	$	0.54		$	0.96

Value creation ratio from change in book value*	0.2		%	1.4		%
Value creation ratio from dividends declared to shareholders**	1.1			1.2
Value creation ratio	1.3		%	2.6		%

* Change in book value divided by the beginning of period book value
** Dividend declared to shareholders divided by beginning of period book value



Net Income Reconciliation

(Dollars in millions except per share data)	Three months ended March 31,
	2015			2014
Net income	$	128		$	91
Realized investment gains, net	31			14
Operating income	97			77
Less catastrophe losses	(28		)	(57		)
Operating income before catastrophe losses	$	125		$	134

Diluted per share data:
Net income	$	0.77		$	0.55
Realized investment gains, net	0.18			0.09
Operating income	0.59			0.46
Less catastrophe losses	(0.17		)	(0.34		)
Operating income before catastrophe losses	$	0.76		$	0.80

CINF 1Q15 Release 14

Cincinnati Financial Corporation



Property Casualty Insurance Reconciliation

(Dollars in millions)	Three months ended March 31, 2015
	Consolidated				Commercial				Personal				E&S
Premiums:
Written premiums		$	1,066			$	783			$	241			$	42
Unearned premiums change		(25		)		(50		)		27				(2		)
Earned premiums		$	1,041			$	733			$	268			$	40

Statutory ratios:
Combined ratio		96.1		%		94.6		%		101.4		%		89.3		%
Contribution from catastrophe losses		4.1				4.0				4.9				0.9
Combined ratio excluding catastrophe losses		92.0		%		90.6		%		96.5		%		88.4		%

Commission expense ratio		17.8		%		16.8		%		19.3		%		26.6		%
Other underwriting expense ratio		12.2				13.1				11.1				3.3
Total expense ratio		30.0		%		29.9		%		30.4		%		29.9		%

GAAP ratios:
Combined ratio		97.5		%		96.6		%		101.4		%		88.3		%
Contribution from catastrophe losses		4.1				4.0				4.9				0.9
Prior accident years before catastrophe losses		(1.1		)		(0.6		)		(0.7		)		(13.6		)
Current accident year combined ratio before catastrophe losses		94.5		%		93.2		%		97.2		%		101.0		%

Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on dollar amounts in thousands.

CINF 1Q15 Release 15

Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending March 31, 2015

6200 South Gilmore Road

Fairfield, Ohio 45014-5141

cinfin.com



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



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

The Cincinnati Insurance Companies
Insurer Financial Strength

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

The Cincinnati Life Insurance Company	A	A+	—	A

Ratings are as of April 27, 2015, under continuous review and subject to change and/or affirmation. For the current ratings, select Financial Strength on cinfin.com.

The consolidated financial statements and financial exhibits that follow are unaudited. These consolidated financial statements and exhibits should be read in conjunction with the consolidated financial statements and notes included with our periodic filings with the U.S. Securities and Exchange Commission. The results of operations for interim periods may not be indicative of results to be expected for the full year.

CINF First-Quarter 2015 Supplemental Financial Data



	Cincinnati Financial Corporation
	Supplemental Financial Data
	for the period ending March 31, 2015

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

Consolidated
	Quick Reference	4
	CFC and Subsidiaries Consolidated Statements of Income	5
	CFC Insurance Subsidiaries – Selected Balance Sheet Data	6

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

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

Life Insurance Operations
	Statutory Statements of Income	19

CINF First-Quarter 2015 Supplemental Financial Data

Definitions of Non-GAAP Information and

Reconciliation to Comparable GAAP Measures

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

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

•

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

•

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.

•

CINF First-Quarter 2015 Supplemental Financial Data



Cincinnati Financial Corporation
Quick Reference					—	First Quarter 2015
(all data shown is for the three months ended or as of March 31, 2015)

(Dollars in millions except per share data)	3/31/2015		Year over year change %				3/31/2015			Year over year change %
Revenues:						Benefits and expenses:

Commercial lines net written premiums	$	783	2			Commercial lines loss and loss expenses	$	474		1
Personal lines net written premiums	241		4			Personal lines loss and loss expenses	191			2
Excess & surplus lines net written premiums	42		20			Excess & surplus lines loss and loss expenses	24			26
Property casualty net written premiums	1,066		3			Life and health contract holders' benefits incurred	60			7
Life and accident and health net written premiums	54		5			Underwriting, acquisition and insurance expenses	345			8
Annuity net written premiums	8		(4	)		Interest expenses	13			(7	)
Life, annuity and accident and health net written premiums	62		4			Other operating expenses	4			0
Commercial lines net earned premiums	733		6			Total benefits & expenses	1,111			4
Personal lines net earned premiums	268		6			Income before income taxes	174			46
Excess & surplus lines net earned premiums	40		21			Total income tax	46			64
Property casualty net earned premiums	1,041		6
Fee revenue	3		0			Balance Sheet:
Life and accident and health net earned premiums	53		10
Investment income	139		3			Fixed maturity investments	$	9,596
Realized investment gains, net	47		114			Equity securities	4,789
Other revenue	2		0			Other investments	91
Total revenues	1,285		8			Total invested assets	$	14,476

						Loss and loss expense reserves	$	4,623
						Life policy and investment contract reserves	2,514
Income:						Long-term debt and capital lease obligations	825
						Shareholders' equity	6,608
Operating income	$	97	26
Realized investment gains, net	31		121			Key ratios:
Net income	128		41
						Commercial lines GAAP combined ratio	96.6		%
						Personal lines GAAP combined ratio	101.4
						Excess & surplus lines GAAP combined ratio	88.3
						Property casualty GAAP combined ratio	97.5
Per share (diluted):
						Commercial lines STAT combined ratio	94.6		%
Operating income	$	0.59	28			Personal lines STAT combined ratio	101.4
Realized investment gains, net	0.18		100			Excess & surplus lines STAT combined ratio	89.3
Net income	0.77		40			Property casualty STAT combined ratio	96.1
Book value	40.22		7
Weighted average shares outstanding	165.6		0			Value creation ratio	1.3		%

CINF First-Quarter 2015 Supplemental Financial Data



Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Three Months Ended March 31, 2015

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I		ELIM			Total
Revenues
Premiums earned:
Property casualty	$	—		$	1,078		$	—		$	—	$	—		$	1,078
Life	—			—			63			—		—			63
Accident health	—			—			2			—		—			2
Premiums ceded	—			(37		)	(12		)	—		—			(49		)
Total earned premium	—			1,041			53			—		—			1,094
Investment income, net of expenses	12			90			37			—		—			139
Realized investment gains, net	1			42			1			—		3			47
Fee revenues	—			2			1			—		—			3
Other revenues	4			—			—			1		(3		)	2
Total revenues	$	17		$	1,175		$	92		$	1	$	—		$	1,285

Benefits & expenses
Losses & policy benefits	$	—		$	690		$	72		$	—	$	—		$	762
Reinsurance recoveries	—			(1		)	(12		)	—		—			(13		)
Underwriting, acquisition and insurance expenses	—			327			18			—		—			345
Interest expense	13			—			—			—		—			13
Other operating expenses	8			—			—			—		(4		)	4
Total expenses	$	21		$	1,016		$	78		$	—	$	(4	)	$	1,111

Income (loss) before income taxes	$	(4	)	$	159		$	14		$	1	$	4		$	174

Provision (benefit) for income taxes
Current operating income	$	—		$	33		$	(3	)	$	—	$	—		$	30
Capital gains/losses	—			15			—			—		1			16
Deferred	(4		)	(4		)	7			—		1			—
Total provision (benefit) for income taxes	$	(4	)	$	44		$	4		$	—	$	2		$	46

Operating income (loss)	$	(1	)	$	88		$	9		$	1	$	—		$	97

Net income - current year	$	—		$	115		$	10		$	1	$	2		$	128

Net income - prior year	$	6		$	74		$	9		$	1	$	1		$	91
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.

CINF First-Quarter 2015 Supplemental Financial Data



Cincinnati Financial Corporation Insurance Subsidiaries
Selected Balance Sheet Data

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

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

CINF First-Quarter 2015 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Statutory Statements of Income

	For the Three Months Ended March 31,
(Dollars in millions)	2015		2014		Change			% Change
Underwriting income
Net premiums written	$	1,066	$	1,037	$	29		3
Unearned premiums increase	25		58		(33		)	(57	)
Earned premiums	$	1,041	$	979	$	62		6

Losses incurred	$	567	$	567	$	—		—
Allocated loss expenses incurred	60		51		9			18
Unallocated loss expenses incurred	62		59		3			5
Other underwriting expenses incurred	316		297		19			6
Workers compensation dividend incurred	3		4		(1		)	(25	)

Total underwriting deductions	$	1,008	$	978	$	30		3
Net underwriting profit	$	33	$	1	$	32		nm

Investment income
Gross investment income earned	$	93	$	91	$	2		2
Net investment income earned	91		90		1			1
Net realized capital gains	26		6		20			333
Net investment gains (net of tax)	$	117	$	96	$	21		22

Other income	$	1	$	2	$	(1	)	(50	)

Net income before federal income taxes	$	151	$	99	$	52		53
Federal and foreign income taxes incurred	$	31	$	17	$	14		82
Net income (statutory)	$	120	$	82	$	38		46
Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. nm - Not meaningful *Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

CINF First-Quarter 2015 Supplemental Financial Data



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

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

CINF First-Quarter 2015 Supplemental Financial Data



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

CINF First-Quarter 2015 Supplemental Financial Data



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

CINF First-Quarter 2015 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Direct Written Premiums by Risk State by Line of Business for the Three Months Ended March 31, 2015
	Commercial Lines											Personal Lines								E & S		Consolidated				Comm'l Change %		Personal Change %		E & S Change %		Consol Change %
Risk State	Comm Casualty		Comm Property		Comm Auto		Workers' Comp		Other Comm			Personal Auto			Home Owner		Other Personal			All Lines		2015		2014
																						Total		Total

OH	$	38.4	$	30.8	$	20.9	$	—	$	9.1		$	27.2		$	22.7	$	7.9		$	3.5	$	160.5	$	162.0	0.3		(2.0	)	5.0		(0.4	)
IL	17.9		13.9		7.6		14.7		3.6			7.2			6.4		2.0			3.8		77.1		78.5		(3.8	)	(0.6	)	31.4		(1.8	)
IN	16.1		14.0		9.4		9.8		3.3			7.3			7.6		1.9			2.5		71.9		71.0		1.1		(2.6	)	(9.5	)	(0.2	)
PA	15.7		11.5		11.1		14.8		3.1			3.3			2.4		1.0			1.5		64.4		66.4		(4.6	)	7.3		31.8		(2.8	)
GA	10.2		9.4		7.0		3.2		3.5			9.5			9.7		2.5			2.7		57.7		56.0		(0.2	)	4.8		30.5		2.8
NC	11.3		11.9		5.9		5.1		3.7			7.8			6.1		1.9			1.5		55.2		53.8		(2.5	)	16.7		9.0		2.6
MI	10.6		9.1		5.7		5.7		3.0			10.5			6.8		1.1			2.0		54.5		52.9		(1.8	)	12.8		29.5		3.7
TN	10.6		9.5		5.5		2.7		3.1			4.3			4.8		1.3			1.1		42.9		40.0		7.3		7.4		8.0		7.3
KY	7.9		8.8		5.6		1.0		1.8			6.2			5.7		1.4			1.2		39.6		37.9		4.9		1.5		47.5		4.6
AL	6.5		8.9		3.7		0.3		2.7			4.7			7.3		1.5			1.9		37.5		37.6		(2.0	)	3.9		2.2		0.3
VA	8.5		8.1		5.6		5.6		2.6			2.7			2.2		0.7			1.3		37.3		38.7		(6.0	)	8.6		2.1		(3.8	)
WI	9.2		7.0		4.1		9.0		1.9			1.7			1.9		0.8			0.8		36.4		37.6		(3.6	)	0.1		(2.2	)	(3.1	)
MN	9.1		6.1		3.2		4.4		1.5			3.9			3.9		1.4			1.1		34.6		30.0		14.7		16.8		14.4		15.3
MO	6.9		8.0		4.0		4.1		1.9			1.4			1.9		0.4			1.9		30.5		29.9		1.0		4.6		4.4		1.6
TX	10.9		6.6		6.8		0.3		1.1			—			—		—			3.9		29.6		29.1		(1.3	)	(46.5	)	31.6		2.1
IA	5.2		4.7		2.1		4.0		1.3			1.0			1.1		0.3			0.6		20.3		22.1		(9.3	)	(0.5	)	12.2		(7.8	)
MD	4.8		2.6		4.0		3.0		1.2			1.9			1.4		0.4			0.7		20.0		18.6		2.5		30.3		19.2		7.3
AR	2.9		4.9		1.8		0.7		1.6			2.3			2.5		0.6			0.5		17.8		16.6		3.2		15.2		(12.5	)	6.0
FL	6.6		4.3		2.3		0.4		0.8			1.0			0.3		0.2			1.5		17.4		18.9		7.6		(68.4	)	72.5		(8.9	)
NY	6.7		4.1		2.6		1.0		0.9			1.0			0.4		0.1			0.4		17.2		15.6		7.8		55.1		(11.9	)	10.3
KS	3.6		4.1		2.1		2.5		0.9			1.1			1.4		0.3			0.4		16.4		16.9		(3.3	)	(2.6	)	52.5		(2.2	)
AZ	4.7		2.6		2.6		1.4		0.9			1.4			1.0		0.4			0.8		15.8		15.0		(0.4	)	26.4		41.4		5.3
UT	5.2		2.4		2.9		0.1		0.9			2.1			1.0		0.3			0.8		15.7		13.8		11.1		11.4		99.5		13.7
SC	2.8		2.4		2.0		0.8		0.8			2.2			1.5		0.4			0.9		13.8		12.8		(1.4	)	25.5		65.3		8.3
MT	5.4		2.5		2.7		—		0.4			0.6			0.6		0.2			0.3		12.7		10.7		19.3		10.0		56.3		18.7
NE	2.7		2.9		1.4		2.6		0.8			0.2			0.2		0.1			0.6		11.5		10.5		14.3		(3.1	)	(20.9	)	10.8
CO	3.7		2.4		2.7		0.2		0.5			—			—		—			1.2		10.7		11.0		(4.9	)	(38.2	)	46.0		(1.2	)
ID	3.7		2.0		1.9		0.1		0.5			0.8			0.5		0.1			0.4		10.0		9.5		(0.3	)	14.7		63.9		3.1
WV	2.7		2.3		1.9		0.8		0.5			—			0.1		—			0.7		9.0		8.9		(1.1	)	(17.6	)	18.2		—
OR	2.4		1.5		1.5		—		0.5			0.6			0.3		0.1			1.2		8.1		5.3		37.6		98.5		64.2		46.4
ND	2.8		1.7		1.6		—		0.6			0.2			0.2		—			—		7.1		7.0		3.6		(1.8	)	(35.8	)	2.9
VT	1.4		1.2		0.7		1.5		0.6			0.3			0.3		0.1			0.2		6.3		6.7		(8.0	)	(0.2	)	13.0		(6.7	)
WA	2.0		1.3		1.4		—		0.4			—			—		—			0.4		5.5		5.4		2.2		nm		17.8		3.1
NM	2.5		1.1		1.3		0.2		0.2			—			—		—			0.1		5.4		4.3		30.2		(41.0	)	(16.6	)	28.0
NH	1.2		1.1		0.5		1.2		0.2			0.4			0.3		0.1			0.2		5.2		5.0		3.6		(2.6	)	(0.4	)	2.4
DE	1.5		1.2		0.7		0.6		0.3			—			—		—			0.1		4.4		3.5		29.5		nm		82.7		30.7
SD	0.9		1.0		0.6		0.8		0.3			—			—		—			0.2		3.8		3.8		(3.8	)	nm		15.7		(3.1	)
CT	1.1		0.9		0.3		0.4		0.2			0.1			0.1		0.1			0.3		3.5		2.5		14.0		nm		56.8		29.4
WY	0.6		0.6		0.4		—		0.1			—			—		—			0.1		1.8		1.3		20.7		(14.1	)	79.6		22.3
All Other	1.2		0.6		1.3		2.1		(0.2		)	(0.1		)	0.3		(0.1		)	0.5		5.6		5.8		(1.1	)	9.1		88.6		1.3
Total	$	268.1	$	220.0	$	149.4	$	105.1	$	61.1		$	114.8		$	102.9	$	29.5		$	43.8	$	1,094.7	$	1,072.9	0.7		3.7		20.2		2.0
Other Direct	—		0.1		1.1		2.0		—			2.6			—		—			—		5.8		5.2		20.0		5.2		nm		13.7
Total Direct	$	268.1	$	220.1	$	150.5	$	107.1	$	61.1		$117.4			$	102.9	$	29.5		$	43.8	$	1,100.5	$	1,078.1	0.8		3.8		20.2		2.1
Dollar amounts shown are rounded to the nearest hundred thousand; certain amounts may not add due to rounding. Percentage changes are calculated based on whole dollar amounts. nm - Not meaningful

CINF First-Quarter 2015 Supplemental Financial Data



Quarterly Property Casualty Data - Commercial Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/15	9/30/15	6/30/15	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			6/30/15	6/30/14			9/30/15	9/30/14			12/31/15	12/31/14
Commercial casualty:
Written premiums				$	266		$	234		$	228		$	249		$	258			$	507			$	735			$	969
Earned premiums				244			243			237			234			224				458				695				938
Current accident year before catastrophe losses				59.2		%	59.2		%	60.2		%	61.7		%	56.3		%		59.1		%		59.4		%		59.4		%
Current accident year catastrophe losses				—			—			—			—			—				—				—				—
Prior accident years before catastrophe losses				1.1			12.1			(3.6		)	(10.5		)	3.6				(3.6		)		(3.6		)		0.5
Prior accident years catastrophe losses				—			—			—			—			—				—				—				—
Total loss and loss expense ratio				60.3		%	71.3		%	56.6		%	51.2		%	59.9		%		55.5		%		55.8		%		59.9		%
Commercial property:
Written premiums				$	206		$	192		$	194		$	197		$	193			$	390			$	584			$	776
Earned premiums				196			191			186			180			171				351				537				728
Current accident year before catastrophe losses				53.6		%	45.7		%	54.3		%	50.8		%	53.4		%		52.1		%		52.9		%		51.0		%
Current accident year catastrophe losses				16.7			0.5			5.2			25.8			27.7				26.7				19.3				14.3
Prior accident years before catastrophe losses				(1.9		)	1.8			(3.1		)	(9.8		)	(0.6		)		(5.3		)		(4.6		)		(2.9		)
Prior accident years catastrophe losses				(3.8		)	(2.7		)	(1.3		)	(2.3		)	(0.9		)		(1.6		)		(1.5		)		(1.8		)
Total loss and loss expense ratio				64.6		%	45.3		%	55.1		%	64.5		%	79.6		%		71.9		%		66.1		%		60.6		%
Commercial auto:
Written premiums				$	149		$	131		$	128		$	144		$	145			$	289			$	417			$	548
Earned premiums				136			137			133			132			126				258				391				528
Current accident year before catastrophe losses				72.3		%	65.6		%	69.1		%	72.1		%	68.0		%		70.0		%		69.8		%		68.7		%
Current accident year catastrophe losses				—			(0.1		)	(0.6		)	4.1			—				2.1				1.2				0.9
Prior accident years before catastrophe losses				8.6			11.2			9.3			9.0			(0.2		)		4.5				6.1				7.4
Prior accident years catastrophe losses				(0.1		)	—			—			—			(0.2		)		(0.1		)		(0.1		)		(0.1		)
Total loss and loss expense ratio				80.8		%	76.7		%	77.8		%	85.2		%	67.6		%		76.5		%		77.0		%		76.9		%
Workers' compensation:
Written premiums				$	104		$	81		$	86		$	92		$	106			$	198			$	284			$	365
Earned premiums				93			90			93			95			92				187				280				370
Current accident year before catastrophe losses				71.5		%	75.9		%	75.0		%	83.2		%	76.8		%		80.0		%		78.4		%		77.8		%
Current accident year catastrophe losses				—			—			—			—			—				—				—				—
Prior accident years before catastrophe losses				(16.1		)	(7.5		)	(16.1		)	(21.2		)	(10.3		)		(15.8		)		(15.9		)		(13.9		)
Prior accident years catastrophe losses				—			—			—			—			—				—				—				—
Total loss and loss expense ratio				55.4		%	68.4		%	58.9		%	62.0		%	66.5		%		64.2		%		62.5		%		63.9		%
Other commercial:
Written premiums				$	58		$	61		$	68		$	66		$	69			$	135			$	203			$	264
Earned premiums				64			69			71			73			79				152				223				292
Current accident year before catastrophe losses				54.4		%	58.5		%	50.2		%	59.6		%	46.7		%		52.9		%		52.0		%		53.4		%
Current accident year catastrophe losses				9.7			(2.7		)	2.0			17.8			17.9				17.9				12.8				9.2
Prior accident years before catastrophe losses				(0.2		)	(13.8		)	(5.6		)	(4.2		)	3.5				(0.2		)		(1.9		)		(4.8		)
Prior accident years catastrophe losses				(2.6		)	(1.2		)	(0.8		)	0.8			(1.3		)		(0.3		)		(0.5		)		(0.7		)
Total loss and loss expense ratio				61.3		%	40.8		%	45.8		%	74.0		%	66.8		%		70.3		%		62.4		%		57.1		%
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.

CINF First-Quarter 2015 Supplemental Financial Data



Quarterly Property Casualty Data - Personal Lines

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

Quarterly Property Casualty Data - Excess & Surplus Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/15	9/30/15	6/30/15	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			6/30/15	6/30/14			9/30/15	9/30/14			12/31/15	12/31/14
Excess & Surplus:
Written premiums				$	42		$	39		$	39		$	40		$	35			$	75			$	114			$	153
Earned premiums				40			39			42			34			33				67				109				148
Current accident year before catastrophe losses				72.1		%	62.1		%	57.8		%	75.4		%	80.6		%		77.9		%		70.2		%		68.1		%
Current accident year catastrophe losses				1.2			2.9			(0.7		)	2.3			3.0				2.6				1.4				1.8
Prior accident years before catastrophe losses				(13.6		)	(16.1		)	(15.4		)	(21.3		)	(27.1		)		(24.1		)		(20.8		)		(19.6		)
Prior accident years catastrophe losses				(0.3		)	0.1			0.1			0.6			0.1				0.4				0.2				0.2
Total loss and loss expense ratio				59.4		%	49.0		%	41.8		%	57.0		%	56.6		%		56.8		%		51.0		%		50.5		%
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently

CINF First-Quarter 2015 Supplemental Financial Data



Cincinnati Insurance Companies Consolidated
Loss and Loss Expense Analysis

(Dollars in millions)									Change in			Change in			Change in			Total									Loss
	Paid			Paid loss		Total			case			IBNR			loss expense			change in			Case			IBNR			expense		Total
	losses			expense		paid			reserves			reserves			reserves			reserves			incurred			incurred			incurred		incurred
Gross loss and loss expense incurred for the three months ended March 31, 2015
Commercial casualty	$	51		$	34	$	85		$	34		$	15		$	14		$	63		$	85		$	15		$	48	$	148
Commercial property	96			10		106			28			(9		)	2			21			124			(9		)	12		127
Commercial auto	78			14		92			4			12			3			19			82			12			17		111
Workers' compensation	45			10		55			(7		)	12			(6		)	(1		)	38			12			4		54
Other commercial	37			6		43			(9		)	(1		)	6			(4		)	28			(1		)	12		39
Total commercial lines	307			74		381			50			29			19			98			357			29			93		479

Personal auto	77			15		92			2			7			3			12			79			7			18		104
Homeowners	47			6		53			17			1			—			18			64			1			6		71
Other personal	17			1		18			(1		)	—			—			(1		)	16			—			1		17
Total personal lines	141			22		163			18			8			3			29			159			8			25		192

Commercial casualty & property	4			4		8			7			4			2			13			11			4			6		21
Total excess & surplus lines	4			4		8			7			4			2			13			11			4			6		21
Total property casualty	$	452		$	100	$	552		$	75		$	41		$	24		$	140		$	527		$	41		$	124	$	692

Ceded loss and loss expense incurred for the three months ended March 31, 2015
Commercial casualty	$	—		$	1	$	1		$	(1	)	$	1		$	—		$	—		$	(1	)	$	1		$	1	$	1
Commercial property	—			—		—			—			—			—			—			—			—			—		—
Commercial auto	—			—		—			1			—			—			1			1			—			—		1
Workers' compensation	3			—		3			—			—			—			—			3			—			—		3
Other commercial	1			—		1			(1		)	—			—			(1		)	—			—			—		—
Total commercial lines	4			1		5			(1		)	1			—			—			3			1			1		5

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

Commercial casualty & property	(1		)	—		(1		)	—			(2		)	—			(2		)	(1		)	(2		)	—		(3		)
Total excess & surplus lines	(1		)	—		(1		)	—			(2		)	—			(2		)	(1		)	(2		)	—		(3		)
Total property casualty	$	4		$	2	$	6		$	(2	)	$	(1	)	$	—		$	(3	)	$	2		$	(1	)	$	2	$	3

Net loss and loss expense incurred for the three months ended March 31, 2015
Commercial casualty	$	51		$	33	$	84		$	35		$	14		$	14		$	63		$	86		$	14		$	47	$	147
Commercial property	96			10		106			28			(9		)	2			21			124			(9		)	12		127
Commercial auto	78			14		92			3			12			3			18			81			12			17		110
Workers' compensation	42			10		52			(7		)	12			(6		)	(1		)	35			12			4		51
Other commercial	36			6		42			(8		)	(1		)	6			(3		)	28			(1		)	12		39
Total commercial lines	303			73		376			51			28			19			98			354			28			92		474

Personal auto	76			14		90			3			7			3			13			79			7			17		103
Homeowners	47			6		53			17			1			—			18			64			1			6		71
Other personal	17			1		18			(1		)	—			—			(1		)	16			—			1		17
Total personal lines	140			21		161			19			8			3			30			159			8			24		191

Commercial casualty & property	5			4		9			7			6			2			15			12			6			6		24
Total excess & surplus lines	5			4		9			7			6			2			15			12			6			6		24
Total property casualty	$	448		$	98	$	546		$	77		$	42		$	24		$	143		$	525		$	42		$	122	$	689

CINF First-Quarter 2015 Supplemental Financial Data



Consolidated Cincinnati Insurance Companies
Quarterly Property Casualty Data

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/15	9/30/15	6/30/15	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			6/30/15	6/30/14			9/30/15	9/30/14			12/31/15	12/31/14
Premiums
Agency renewal written premiums				$	983		$	906		$	958		$	974		$	956			$	1,930			$	2,888			$	3,794
Agency new business written premiums				116			122			125			133			123				256				381				503
Other written premiums				(33		)	(41		)	(46		)	(25		)	(42		)		(67		)		(113		)		(154		)
Net written premiums – statutory*				$	1,066		$	987		$	1,037		$	1,082		$	1,037			$	2,119			$	3,156			$	4,143
Unearned premium change				(25		)	48			(12		)	(76		)	(58		)		(134		)		(146		)		(98		)
Earned premiums				$	1,041		$	1,035		$	1,025		$	1,006		$	979			$	1,985			$	3,010			$	4,045
Year over year change %
Agency renewal written premiums				3		%	6		%	5		%	11		%	13		%		12		%		9		%		9		%
Agency new business written premiums				(6		)	(5		)	(11		)	(4		)	(9		)		(7		)		(8		)		(7		)
Other written premiums				21			45			(84		)	26			(320		)		(52		)		(64		)		(8		)
Net written premiums – statutory*				3			9			1			10			7				8				6				6
Paid losses and loss expenses
Losses paid				$	448		$	478		$	543		$	517		$	484			$	1,001			$	1,543			$	2,021
Loss expenses paid				98			98			96			98			100				198				295				392
Loss and loss expenses paid				$	546		$	576		$	639		$	615		$	584			$	1,199			$	1,838			$	2,413
Statutory combined ratio
Loss ratio				54.4		%	49.0		%	50.0		%	60.7		%	57.9		%		59.4		%		56.2		%		54.4		%
DCC expense ratio				5.8			5.7			5.1			3.9			5.2				4.5				4.7				5.0
AO expense ratio				5.9			5.4			5.6			5.6			6.0				5.8				5.7				5.6
Net underwriting expense ratio				30.0			31.7			30.6			29.4			29.0				29.2				29.7				30.1
Statutory combined ratio				96.1		%	91.8		%	91.3		%	99.6		%	98.1		%		98.9		%		96.3		%		95.1		%
Contribution from catastrophe losses				4.1			(0.9		)	1.2			11.4			8.9				10.2				7.1				5.1
Statutory combined ratio excl. catastrophe losses				92.0		%	92.7		%	90.1		%	88.2		%	89.2		%		88.7		%		89.2		%		90.0		%
Commission expense ratio				17.8		%	19.2		%	18.9		%	17.9		%	17.7		%		17.8		%		18.1		%		18.4		%
Other underwriting expense ratio				12.2			12.5			11.7			11.5			11.3				11.4				11.6				11.7
Statutory expense ratio				30.0		%	31.7		%	30.6		%	29.4		%	29.0		%		29.2		%		29.7		%		30.1		%
GAAP combined ratio
GAAP combined ratio				97.5		%	90.4		%	91.0		%	100.9		%	100.3		%		100.6		%		97.3		%		95.6		%
Contribution from catastrophe losses				4.1			(0.9		)	1.2			11.4			8.9				10.2				7.1				5.1
GAAP combined ratio excl. catastrophe losses				93.4		%	91.3		%	89.8		%	89.5		%	91.4		%		90.4		%		90.2		%		90.5		%
Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently. nm - Not meaningful *Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

CINF First-Quarter 2015 Supplemental Financial Data



Cincinnati Insurance Companies
Quarterly Property Casualty Data - Commercial Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/15	9/30/15	6/30/15	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			6/30/15	6/30/14			9/30/15	9/30/14			12/31/15	12/31/14
Premiums
Agency renewal written premiums				$	730		$	645		$	651		$	669		$	713			$	1,382			$	2,033			$	2,678
Agency new business written premiums				79			86			89			95			90				185				274				360
Other written premiums				(26		)	(32		)	(36		)	(16		)	(32		)		(48		)		(84		)		(116		)
Net written premiums – statutory*				$	783		$	699		$	704		$	748		$	771			$	1,519			$	2,223			$	2,922
Unearned premium change				(50		)	31			16			(34		)	(79		)		(113		)		(97		)		(66		)
Earned premiums				$	733		$	730		$	720		$	714		$	692			$	1,406			$	2,126			$	2,856
Year over year change %
Agency renewal written premiums				2		%	6		%	3		%	11		%	13		%		12		%		9		%		8		%
Agency new business written premiums				(12		)	(7		)	(13		)	(4		)	(7		)		(6		)		(8		)		(8		)
Other written premiums				19			49			(140		)	33			nm				(100		)		(115		)		(14		)
Net written premiums – statutory*				2			10			(2		)	10			6				8				5				6
Paid losses and loss expenses
Losses paid				$	303		$	325		$	368		$	347		$	327			$	674			$	1,041			$	1,366
Loss expenses paid				73			75			74			75			76				151				226				300
Loss and loss expenses paid				$	376		$	400		$	442		$	422		$	403			$	825			$	1,267			$	1,666
Statutory combined ratio
Loss ratio				52.2		%	49.9		%	47.5		%	54.7		%	56.1		%		55.4		%		52.8		%		52.0		%
DCC expense ratio				7.1			6.9			6.2			4.6			6.4				5.5				5.7				6.1
AO expense ratio				5.4			5.5			5.7			5.2			5.4				5.3				5.4				5.4
Net underwriting expense ratio				29.9			32.5			32.2			30.5			28.5				29.5				30.3				30.8
Statutory combined ratio				94.6		%	94.8		%	91.6		%	95.0		%	96.4		%		95.7		%		94.2		%		94.3		%
Contribution from catastrophe losses				4.0			(1.0		)	1.0			8.6			8.5				8.5				6.0				4.3
Statutory combined ratio excl. catastrophe losses				90.6		%	95.8		%	90.6		%	86.4		%	87.9		%		87.2		%		88.2		%		90.0		%
Commission expense ratio				16.8		%	18.9		%	19.0		%	17.7		%	16.4		%		17.0		%		17.7		%		18.0		%
Other underwriting expense ratio				13.1			13.6			13.2			12.8			12.1				12.5				12.6				12.8
Statutory expense ratio				29.9		%	32.5		%	32.2		%	30.5		%	28.5		%		29.5		%		30.3		%		30.8		%
GAAP combined ratio
GAAP combined ratio				96.6		%	93.6		%	90.7		%	96.3		%	99.9		%		98.1		%		95.6		%		95.1		%
Contribution from catastrophe losses				4.0			(1.0		)	1.0			8.6			8.5				8.5				6.0				4.3
GAAP combined ratio excl. catastrophe losses				92.6		%	94.6		%	89.7		%	87.7		%	91.4		%		89.6		%		89.6		%		90.8		%
Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently. nm - Not meaningful *Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

CINF First-Quarter 2015 Supplemental Financial Data



Cincinnati Insurance Companies
Quarterly Property Casualty Data - Personal Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/15	9/30/15	6/30/15	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			6/30/15	6/30/14			9/30/15	9/30/14			12/31/15	12/31/14
Premiums
Agency renewal written premiums				$	223		$	233		$	278		$	276		$	218			$	494			$	772			$	1,005
Agency new business written premiums				24			24			23			24			21				45				68				92
Other written premiums				(6		)	(8		)	(7		)	(6		)	(8		)		(14		)		(21		)		(29		)
Net written premiums – statutory*				$	241		$	249		$	294		$	294		$	231			$	525			$	819			$	1,068
Unearned premium change				27			17			(31		)	(36		)	23				(13		)		(44		)		(27		)
Earned premiums				$	268		$	266		$	263		$	258		$	254			$	512			$	775			$	1,041
Year over year change %
Agency renewal written premiums				2		%	4		%	8		%	10		%	12		%		11		%		10		%		8		%
Agency new business written premiums				14			0			(18		)	(20		)	(25		)		(22		)		(21		)		(16		)
Other written premiums				25			11			13			25			—				13				13				12
Net written premiums – statutory*				4			4			6			8			7				8				7				6
Paid losses and loss expenses
Losses paid				$	139		$	147		$	170		$	167		$	152			$	319			$	489			$	636
Loss expenses paid				22			21			19			20			21				41				60				81
Loss and loss expenses paid				$	161		$	168		$	189		$	187		$	173			$	360			$	549			$	717
Statutory combined ratio
Loss ratio				61.9		%	48.9		%	60.5		%	79.4		%	64.8		%		72.2		%		68.2		%		63.3		%
DCC expense ratio				2.0			1.8			1.4			1.6			1.6				1.6				1.5				1.6
AO expense ratio				7.1			5.1			5.5			6.7			7.7				7.2				6.6				6.2
Net underwriting expense ratio				30.4			29.3			26.3			26.6			30.5				28.3				27.6				28.0
Statutory combined ratio				101.4		%	85.1		%	93.7		%	114.3		%	104.6		%		109.3		%		103.9		%		99.1		%
Contribution from catastrophe losses				4.9			(1.4		)	2.0			20.4			10.8				15.7				11.0				7.8
Statutory combined ratio excl. catastrophe losses				96.5		%	86.5		%	91.7		%	93.9		%	93.8		%		93.6		%		92.9		%		91.3		%
Commission expense ratio				19.3		%	19.0		%	17.0		%	17.4		%	20.5		%		18.8		%		18.2		%		18.3		%
Other underwriting expense ratio				11.1			10.3			9.3			9.2			10.0				9.5				9.4				9.7
Statutory expense ratio				30.4		%	29.3		%	26.3		%	26.6		%	30.5		%		28.3		%		27.6		%		28.0		%
GAAP combined ratio
GAAP combined ratio				101.4		%	83.7		%	95.0		%	115.8		%	103.0		%		109.4		%		104.5		%		99.2		%
Contribution from catastrophe losses				4.9			(1.4		)	2.0			20.4			10.8				15.7				11.0				7.8
GAAP combined ratio excl. catastrophe losses				96.5		%	85.1		%	93.0		%	95.4		%	92.2		%		93.7		%		93.5		%		91.4		%
Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently. nm - Not meaningful *Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

CINF First-Quarter 2015 Supplemental Financial Data



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

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/15	9/30/15	6/30/15	3/31/15			12/31/14			9/30/14			6/30/14			3/31/14			6/30/15	6/30/14			9/30/15	9/30/14			12/31/15	12/31/14
Premiums
Agency renewal written premiums				$	30		$	28		$	29		$	29		$	25			$	54			$	83			$	111
Agency new business written premiums				13			12			13			14			12				26				39				51
Other written premiums				(1		)	(1		)	(3		)	(3		)	(2		)		(5		)		(8		)		(9		)
Net written premiums – statutory*				$	42		$	39		$	39		$	40		$	35			$	75			$	114			$	153
Unearned premium change				(2		)	0			3			(6		)	(2		)		(8		)		(5		)		(5		)
Earned premiums				$	40		$	39		$	42		$	34		$	33			$	67			$	109			$	148
Year over year change %
Agency renewal written premiums				20		%	17		%	16		%	12		%	32		%		20		%		19		%		18		%
Agency new business written premiums				8			0			18			56			20				37				30				21
Other written premiums				50			50			(50		)	(50		)	0				(25		)		(33		)		(13		)
Net written premiums – statutory*				20			15			15			21			30				25				21				20
Paid losses and loss expenses
Losses paid				$	5		$	6		$	5		$	3		$	5			$	8			$	13			$	19
Loss expenses paid				4			2			3			3			3				6				9				11
Loss and loss expenses paid				$	9		$	8		$	8		$	6		$	8			$	14			$	22			$	30
Statutory combined ratio
Loss ratio				44.9		%	34.4		%	27.9		%	46.6		%	40.6		%		43.7		%		37.6		%		36.8		%
DCC expense ratio				7.6			7.4			9.5			6.5			8.4				7.4				8.2				8.0
AO expense ratio				6.9			7.2			4.4			3.9			7.6				5.7				5.2				5.7
Net underwriting expense ratio				29.9			31.4			34.0			29.1			30.4				29.7				31.2				31.3
Statutory combined ratio				89.3		%	80.4		%	75.8		%	86.1		%	87.0		%		86.5		%		82.2		%		81.8		%
Contribution from catastrophe losses				0.9			3.0			(0.6		)	2.9			3.1				3.0				1.6				2.0
Statutory combined ratio excl. catastrophe losses				88.4		%	77.4		%	76.4		%	83.2		%	83.9		%		83.5		%		80.6		%		79.8		%
Commission expense ratio				26.6		%	26.6		%	29.1		%	25.8		%	26.5		%		26.1		%		27.2		%		27.0		%
Other underwriting expense ratio				3.3			4.8			4.9			3.3			3.9				3.6				4.0				4.3
Statutory expense ratio				29.9		%	31.4		%	34.0		%	29.1		%	30.4		%		29.7		%		31.2		%		31.3		%
GAAP combined ratio
GAAP combined ratio				88.3		%	77.8		%	70.2		%	85.0		%	86.9		%		85.9		%		79.9		%		79.4		%
Contribution from catastrophe losses				0.9			3.0			(0.6		)	2.9			3.1				3.0				1.6				2.0
GAAP combined ratio excl. catastrophe losses				87.4		%	74.8		%	70.8		%	82.1		%	83.8		%		82.9		%		78.3		%		77.4		%
Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently. nm - Not meaningful *Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

CINF First-Quarter 2015 Supplemental Financial Data



The Cincinnati Life Insurance Company
Statutory Statements of Income

	For the Three Months Ended March 31,
(Dollars in millions)	2015			2014			Change			% Change
Net premiums written	$	61		$	58		$	3		5
Net investment income	38			36			2			6
Amortization of interest maintenance reserve	1			—			1			nm
Commissions and expense allowances on reinsurance ceded	1			2			(1		)	(50	)
Income from fees associated with Separate Accounts	1			2			(1		)	(50	)
Total revenues	$	102		$	98		$	4		4

Death benefits and matured endowments	$	25		$	26		$	(1	)	(4	)
Annuity benefits	15			13			2			15
Disability benefits and benefits under accident and health contracts	—			1			(1		)	(100	)
Surrender benefits and group conversions	4			5			(1		)	(20	)
Interest and adjustments on deposit-type contract funds	3			3			—			0
Increase in aggregate reserves for life and accident and health contracts	40			40			—			—
Payments on supplementary contracts with life contingencies	—			—			—			nm
Total benefit expenses	$	87		$	88		$	(1	)	(1	)

Commissions	$	9		$	9		$	—		—
General insurance expenses and taxes	10			10			—			—
Increase in loading on deferred and uncollected premiums	1			(1		)	2			200
Net transfers from Separate Accounts	—			—			—			nm
Other deductions	—			—			—			nm
Total underwriting expenses	$	20		$	18		$	2		11

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

Net loss from operations before realized capital gains	$	(2	)	$	(5	)	$	3		60

Net realized gains net of capital gains tax	—			—			—			nm

Net loss (statutory)	$	(2	)	$	(5	)	$	3		60
Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. nm - Not meaningful *Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

CINF First-Quarter 2015 Supplemental Financial Data



		The Cincinnati Insurance Company n The Cincinnati Indemnity Company The Cincinnati Casualty Company n The Cincinnati Specialty Underwriters Insurance Company The Cincinnati Life Insurance Company n CFC Investment Company n CSU Producer Resources Inc.

Investor Contact: Dennis E. McDaniel, 513-870-2768

[email protected]

Media Contact: Betsy E. Ertel, 513-603-5323

[email protected]

The Cincinnati Insurance Company Announces Preliminary

Plans to Expand Assumed Reinsurance Operations

Cincinnati, April 28, 2015 - Cincinnati Financial Corporation (Nasdaq: CINF) announced that James W. B. Hole will join The Cincinnati Insurance Company on May 4 as Managing Director, Head of Reinsurance Assumed. He will report to Chief Risk Officer and Senior Vice President Teresa Cracas.

Hole will apply his reinsurance expertise to investigate opportunities to expand the company’s assumed reinsurance – a relatively small line of business for the company since the 1990s. His charge is to build internal capabilities to assess, quantify, price and manage assumed reinsurance risk.

A graduate from Franklin and Marshall College, Hole brings more than 20 years of experience in property casualty reinsurance. Since 2013, he was managing director of Global Business Development for JLT Re and a member of the Global and North American Executive Committees. Prior to the acquisition of Towers Watson’s reinsurance business by JLT, Hole was global managing director of Sales and Practice Development at Towers Watson for its reinsurance, risk consulting and software businesses.

President and Chief Executive Officer Steven J. Johnston commented, “It’s the right time to prepare for future opportunities with assumed reinsurance. This line of business gives us the opportunity to diversify our risk, which should help smooth the volatility of our results over the long term. JLT Re has been gracious in working with us to achieve a smooth transition. We appreciate their support, and Jamie and I both look forward to continuing our strong relationship with them as we build our assumed reinsurance business.”

“Jamie understands our company and is well equipped to evaluate where we can best put our capital to use in the reinsurance market. We will approach this the Cincinnati way: building premium slowly over time, cultivating relationships with the ceding company’s leadership and maintaining underwriting discipline.”

About Cincinnati Financial

Mailing Address: Street Address:

P.O. Box 145496 6200 South Gilmore Road

Cincinnati, Ohio 45250-5496 Fairfield, Ohio 45014-5141

Safe Harbor Statement

Factors that could cause or contribute to such differences include, but are not limited to:


•	Unusually high levels of catastrophe losses due to risk concentrations, changes in weather patterns, environmental events, terrorism incidents or other causes


•	Increased frequency and/or severity of claims or development of claims that are unforeseen at the time of policy issuance


•	Inadequate estimates or assumptions used for critical accounting estimates


•	Declines in overall stock market values negatively affecting the company’s equity portfolio and book value


•	Domestic and global events resulting in capital market or credit market uncertainty, followed by prolonged periods of economic instability or recession, that lead to:


◦	Significant or prolonged decline in the value of a particular security or group of securities and impairment of the asset(s)


◦	Significant decline in investment income due to reduced or eliminated dividend payouts from a particular security or group of securities


◦	Significant rise in losses from surety and director and officer policies written for financial institutions or other insured entities


•	Prolonged low interest rate environment or other factors that limit the company’s ability to generate growth in investment income or interest rate fluctuations that result in declining values of fixed-maturity investments, including declines in accounts in which we hold bank-owned life insurance contract assets


•	Recession or other economic conditions resulting in lower demand for insurance products or increased payment delinquencies


•	Difficulties with technology or data security breaches, including cyberattacks, that could negatively affect our ability to conduct business and our relationships with agents, policyholders and others


•	Disruption of the insurance market caused by technology innovations such as driverless cars that could decrease consumer demand for insurance products


•	Delays or performance inadequacies from ongoing development and implementation of underwriting and pricing methods, including telematics and other usage-based insurance methods, or technology projects and enhancements expected to increase our pricing accuracy, underwriting profit and competitiveness


•	Increased competition that could result in a significant reduction in the company’s premium volume


•	Changing consumer insurance-buying habits and consolidation of independent insurance agencies that could alter our competitive advantages


•	Inability to obtain adequate reinsurance on acceptable terms, amount of reinsurance purchased, financial strength of reinsurers and the potential for nonpayment or delay in payment by reinsurers


•	Inability to defer policy acquisition costs for any business segment if pricing and loss trends would lead management to conclude that segment could not achieve sustainable profitability


•	Inability of our subsidiaries to pay dividends consistent with current or past levels


•	Events or conditions that could weaken or harm the company’s relationships with its independent agencies and hamper opportunities to add new agencies, resulting in limitations on the company’s opportunities for growth, such as:


◦	Downgrades of the company’s financial strength ratings


◦	Concerns that doing business with the company is too difficult


◦	Perceptions that the company’s level of service, particularly claims service, is no longer a distinguishing characteristic in the marketplace


◦	Inability or unwillingness to nimbly develop and introduce coverage product updates and innovations that our competitors offer and consumers expect to find in the marketplace


•	Actions of insurance departments, state attorneys general or other regulatory agencies, including a change to a federal system of regulation from a state-based system, that:


◦	Impose new obligations on us that increase our expenses or change the assumptions underlying our critical accounting estimates


◦	Place the insurance industry under greater regulatory scrutiny or result in new statutes, rules and regulations


◦	Restrict our ability to exit or reduce writings of unprofitable coverages or lines of business


◦	Add assessments for guaranty funds, other insurance‑related assessments or mandatory reinsurance arrangements; or that impair our ability to recover such assessments through future surcharges or other rate changes


◦	Increase our provision for federal income taxes due to changes in tax law


◦	Increase our other expenses


◦	Limit our ability to set fair, adequate and reasonable rates


◦	Place us at a disadvantage in the marketplace


◦	Restrict our ability to execute our business model, including the way we compensate agents


•	Adverse outcomes from litigation or administrative proceedings


•	Events or actions, including unauthorized intentional circumvention of controls, that reduce the company’s future ability to maintain effective internal control over financial reporting under the Sarbanes-Oxley Act of 2002


•	Unforeseen departure of certain executive officers or other key employees due to retirement, health or other causes that could interrupt progress toward important strategic goals or diminish the effectiveness of certain longstanding relationships with insurance agents and others


•	Events, such as an epidemic, natural catastrophe or terrorism, that could hamper our ability to assemble our workforce at our headquarters location

* * *

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Form 8-K CINCINNATI FINANCIAL For: Apr 28

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