0000020286-21-000049.txt : 20210728 0000020286-21-000049.hdr.sgml : 20210728 20210728160702 ACCESSION NUMBER: 0000020286-21-000049 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20210728 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210728 DATE AS OF CHANGE: 20210728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CINCINNATI FINANCIAL CORP CENTRAL INDEX KEY: 0000020286 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 310746871 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-04604 FILM NUMBER: 211122602 BUSINESS ADDRESS: STREET 1: 6200 S GILMORE RD CITY: FAIRFIELD STATE: OH ZIP: 45014 BUSINESS PHONE: 5138702000 MAIL ADDRESS: STREET 1: P.O. BOX 145496 CITY: CINCINNATI STATE: OH ZIP: 45250 8-K 1 cinf-20210728.htm 8-K cinf-20210728
0000020286false00000202862021-07-282021-07-28

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: July 28, 2021
(Date of earliest event reported)

CINCINNATI FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Ohio0-460431-0746871
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
6200 S. Gilmore RoadFairfield,Ohio45014‑5141
(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.)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stockCINFNasdaq Global Select Market
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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§203.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
    Emerging growth company
    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.





Item 2.02 Results of Operations and Financial Condition.
On July 28, 2021, Cincinnati Financial Corporation issued the attached news release titled “Cincinnati Financial Reports Second-Quarter 2021 Results,” furnished as Exhibit 99.1 hereto and incorporated herein by reference. On July 28, 2021, the company also distributed the attached information titled “Supplemental Financial Data,” furnished as Exhibit 99.2 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.

(c)     Exhibits



Exhibit 104 – The cover page from this Current Report on Form 8-K, formatted as Inline XBRL

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: July 28, 2021/S/ Michael J. Sewell
Michael J. Sewell, CPA
Chief Financial Officer, Senior Vice President and Treasurer
(Principal Accounting Officer)


EX-99.1 2 exhibit9912q21.htm EX-99.1 Document

cfc3025rgba01.jpg
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.
Cincinnati Global Underwriting Ltd. n Cincinnati Global Underwriting Agency Ltd.

Investor Contact: Dennis E. McDaniel, 513-870-2768
CINF-IR@cinfin.com

Media Contact: Betsy E. Ertel, 513-603-5323
Media_Inquiries@cinfin.com

Cincinnati Financial Reports Second-Quarter 2021 Results
Cincinnati, July 28, 2021 – Cincinnati Financial Corporation (Nasdaq: CINF) today reported:
Second-quarter 2021 net income of $703 million, or $4.31 per share, compared with $909 million, or $5.63 per share, in the second quarter of 2020, after recognizing a $386 million second-quarter 2021 after-tax increase in the fair value of equity securities still held.
$221 million or 311% increase in non-GAAP operating income* to $292 million, or $1.79 per share, compared with $71 million, or 44 cents per share, in the second quarter of last year.
$206 million decrease in second-quarter 2021 net income, primarily due to the after-tax net effect of a $427 million decrease in net investment gains partially offset by a $207 million increase in after-tax property casualty underwriting income.
$73.57 book value per share at June 30, 2021, up $6.53 since year-end.
11.6% value creation ratio for the first six months of 2021, compared with negative 3.0% for the same period of 2020.
Financial Highlights
(Dollars in millions, except per share data)Three months ended June 30,Six months ended June 30,
20212020% Change20212020% Change
Revenue Data
   Earned premiums $1,593 $1,482 7$3,137 $2,938 7
   Investment income, net of expenses175 166 5349 331 5
   Total revenues2,295 2,714 (15)4,522 2,615 73
Income Statement Data
   Net income (loss) $703 $909 (23)$1,323 $(317)nm
   Investment gains and losses, after-tax411 838 (51)809 (525)nm
   Non-GAAP operating income* $292 $71 311$514 $208 147
Per Share Data (diluted)
   Net income (loss) $4.31 $5.63 (23)$8.13 $(1.96)nm
   Investment gains and losses, after-tax2.52 5.19 (51)4.97 (3.25)nm
   Non-GAAP operating income* $1.79 $0.44 307$3.16 $1.29 145
   Book value$73.57 $57.56 28
   Cash dividend declared$0.63 $0.60 5$1.26 $1.20 5
   Diluted weighted average shares outstanding162.9 161.5 1162.7 161.5 1
*    The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures section 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 2Q21 Release 1


Insurance Operations Highlights
85.5% second-quarter 2021 property casualty combined ratio, improved from 103.1% for the second quarter of 2020.
10% growth in second-quarter net written premiums, reflecting price increases and premium growth initiatives.
$235 million second-quarter 2021 property casualty new business written premiums, up 12%. Agencies appointed since the beginning of 2020 contributed $17 million or 7% of total new business written premiums.
$14 million second-quarter 2021 life insurance subsidiary net income, up $2 million from the second quarter of 2020, and 2% growth in second-quarter 2021 term life insurance earned premiums.
Investment and Balance Sheet Highlights
5% or $9 million increase in second-quarter 2021 pretax investment income, including a 13% increase for stock portfolio dividends and a 3% increase for bond interest income.
Three-month increase of 5% in fair value of total investments at June 30, 2021, including a 6% increase for the stock portfolio and 4% increase for the bond portfolio.
$4.254 billion parent company cash and marketable securities at June 30, 2021, up 13% from year-end 2020.

Property Casualty Operations Producing Results
Steven J. Johnston, chairman, president and CEO, commented: “We continued to achieve strong non-GAAP operating income results, increasing that measure 311% to $292 million in the second quarter. Our property casualty insurance operations led the way, earning $221 million in pretax underwriting profit for the quarter. Investment income continued its steady contribution, growing 5% compared with second-quarter 2020.

“The change in accounting rules adopted in 2018 that we’ve mentioned in the past continues to cause volatility in net income results as unrealized investment gains and losses flow through that number. For instance, our second-quarter net income decreased $206 million compared to the second quarter of 2020 when stock markets were rebounding from pandemic-induced effects early last year. However, when you look at our net income for the first half of 2021 in total compared with the first half of 2020, you’ll see a positive swing of $1.640 billion.

“Looking closer at our insurance operations, property casualty underwriting produced our best results in 15 years, making strides in both our quarterly and first-half combined ratios in all of our major areas of business. Lower weather-related catastrophe losses supported by our initiatives to deepen product and geographic diversification helped our property casualty insurance operations improve our second-quarter and first-half combined ratios 17.6 points and 12.5 points, respectively, to 85.5% and 88.3%.”

Getting Back to Business
“In the past few months, we’ve had opportunities to visit in person with the outstanding independent agencies that represent Cincinnati Insurance in their communities. Their excitement for the future is palpable.

“Property casualty new business written premiums reached another record high in the second quarter, growing 12% to $235 million compared with last year, as production from recently appointed agencies accelerates. Our underwriters select and price new business from our agencies with confidence as we continue to hone our abilities in both pricing precision and policy segmentation.

“Total property casualty net written premium growth for the first six months returned to pre-pandemic levels, increasing 11% compared with the first half of 2020. Growth was 10% for the first-half and full-year 2019. Overall renewal pricing trends developed satisfactorily with standard commercial and personal lines policies averaging percentage increases in the mid-single-digit range and excess and surplus lines policies in the high-single-digit range.

“By seeking increased pricing on those accounts that need it most and remaining competitive on our agents’ best-performing accounts, we are able to strike a nice balance between growth and profitability.”

Book Value at Record High
“At June 30, our book value again reached a record high, increasing 10% since December 31, 2020. Consolidated cash and total investments also reached a new high, topping $24 billion.

“Our ample capital allows us to execute on our long-term strategies and, at the same time, continue to pay dividends to shareholders. Our value creation ratio, which considers the dividends we pay as well as growth in book value, was 11.6% for the first half of 2021, in line with our 10% to 13% average annual target for this measure.”

                                             CINF 2Q21 Release 2


Insurance Operations Highlights
Consolidated Property Casualty Insurance Results
(Dollars in millions)Three months ended June 30,Six months ended June 30,
20212020% Change20212020% Change
Earned premiums $1,514$1,403$2,989$2,792
Fee revenues3250 55
   Total revenues1,5171,4052,9942,797
Loss and loss expenses8301,007(18)1,7531,937(9)
Underwriting expenses466439887877
   Underwriting profit (loss) $221$(41)nm$354$(17)nm
Ratios as a percent of earned premiums:Pt. ChangePt. Change
     Loss and loss expenses54.8 %71.8 %(17.0)58.6 %69.4 %(10.8)
     Underwriting expenses30.7 31.3 (0.6)29.7 31.4 (1.7)
           Combined ratio85.5 %103.1 %(17.6)88.3 %100.8 %(12.5)
% Change% Change
Agency renewal written premiums $1,333$1,244 $2,609$2,442
Agency new business written premiums235210 12 455425
Other written premiums146105 39 34321063 
   Net written premiums $1,714$1,559 10 $3,407$3,07711 
Ratios as a percent of earned premiums:Pt. ChangePt. Change
     Current accident year before catastrophe losses56.8 %58.2 %(1.4)57.2 %59.0 %(1.8)
     Current accident year catastrophe losses5.8 16.9 (11.1)9.1 13.2 (4.1)
     Prior accident years before catastrophe losses(5.9)(2.9)(3.0)(5.7)(2.4)(3.3)
     Prior accident years catastrophe losses(1.9)(0.4)(1.5)(2.0)(0.4)(1.6)
           Loss and loss expense ratio54.8 %71.8 %(17.0)58.6 %69.4 %(10.8)
Current accident year combined ratio before
  catastrophe losses
87.5 %89.5 %(2.0)86.9 %90.4 %(3.5)

$155 million or 10% growth of second-quarter 2021 property casualty net written premiums, and six-month growth of 11%, largely reflecting premium growth initiatives and price increases. Cincinnati Re® contributed 3 percentage points to property casualty growth for the second quarter of 2021 and 5 points to six-month growth.
$25 million or 12% increase in second-quarter 2021 new business premiums written by agencies and six-month increase of 7%. The second-quarter growth included a $13 million increase in standard market property casualty production from agencies appointed since the beginning of 2020.
151 new agency appointments in the first six months of 2021, including 30 that market only our personal lines products.
17.6 percentage-point second-quarter 2021 combined ratio improvement and a 12.5 percentage-point improvement for the six-month period. The lower combined ratios included decreases for losses from catastrophes of 12.6 points for the second quarter and 5.7 points for the first six months of 2021.
7.8 percentage-point second-quarter 2021 benefit from favorable prior accident year reserve development of $119 million, compared with 3.3 points or $47 million for second-quarter 2020.
7.7 percentage-point six-month 2021 benefit from favorable prior accident year reserve development, compared with 2.8 points for the first six months of 2020.
1.8 percentage-point improvement, to 57.2%, for the six-month 2021 ratio of current accident year losses and loss expenses before catastrophes, including a decrease of 0.2 points in the ratio for current accident year losses of $1 million or more per claim.
0.6 percentage-point decrease in the second-quarter 2021 underwriting expense ratio, compared with the same period of 2020, primarily due to the second-quarter 2020 $16 million Stay-at-Home policyholder credit for personal auto policies.
                                             CINF 2Q21 Release 3



Commercial Lines Insurance Results
(Dollars in millions)Three months ended June 30,Six months ended June 30,
20212020% Change20212020% Change
Earned premiums $911 $870 $1,797 $1,733 
Fee revenues1 2 
   Total revenues912 871 1,799 1,735 
Loss and loss expenses480 596 (19)983 1,204 (18)
Underwriting expenses287 267 541 543 
   Underwriting profit (loss) $145 $nm$275 $(12)nm
Ratios as a percent of earned premiums:Pt. ChangePt. Change
     Loss and loss expenses52.8 %68.4 %(15.6)54.7 %69.5 %(14.8)
     Underwriting expenses31.4 30.7 0.7 30.1 31.3 (1.2)
           Combined ratio84.2 %99.1 %(14.9)84.8 %100.8 %(16.0)
% Change% Change
Agency renewal written premiums$852 $794 $1,750 $1,636 
Agency new business written premiums146 134 291 288 
Other written premiums(21)(20)(5)(45)(44)(2)
   Net written premiums$977 $908 $1,996 $1,880 
Ratios as a percent of earned premiums:Pt. ChangePt. Change
     Current accident year before catastrophe losses57.9 %58.9 %(1.0)58.9 %60.0 %(1.1)
     Current accident year catastrophe losses4.3 14.6 (10.3)5.2 12.4 (7.2)
     Prior accident years before catastrophe losses(8.3)(4.5)(3.8)(7.9)(2.4)(5.5)
     Prior accident years catastrophe losses(1.1)(0.6)(0.5)(1.5)(0.5)(1.0)
           Loss and loss expense ratio52.8 %68.4 %(15.6)54.7 %69.5 %(14.8)
Current accident year combined ratio before
  catastrophe losses
89.3 %89.6 %(0.3)89.0 %91.3 %(2.3)

$69 million or 8% growth in second-quarter 2021 commercial lines net written premiums, primarily due to higher agency renewal written premiums. Six percent growth in six-month net written premiums.
$58 million or 7% increase in second-quarter renewal written premiums, with commercial lines average renewal pricing increases in the mid-single-digit percent range.
$12 million or 9% increase in second-quarter 2021 new business written by agencies, and a six-month increase of 1% as first-quarter 2021 reflected weakened economic factors from pandemic effects.
14.9 percentage-point second-quarter 2021 combined ratio improvement and a 16.0 percentage-point improvement for the six-month period. The lower combined ratios included decreases for losses from catastrophes of 10.8 points for the second quarter and 8.2 points for the first six months of 2021.
9.4 percentage-point second-quarter 2021 benefit from favorable prior accident year reserve development of $86 million, compared with 5.1 points or $45 million for second-quarter 2020.
9.4 percentage-point six-month 2021 benefit from favorable prior accident year reserve development, compared with 2.9 points for the first six months of 2020.
                                             CINF 2Q21 Release 4



Personal Lines Insurance Results
(Dollars in millions)Three months ended June 30,Six months ended June 30,
20212020% Change20212020% Change
Earned premiums $382 $364 $758 $723 
Fee revenues1 2 
   Total revenues383 365 760 725 
Loss and loss expenses241 286 (16)514 517 (1)
Underwriting expenses113 122 (7)220 230 (4)
   Underwriting profit (loss) $29 $(43)nm$26 $(22)nm
Ratios as a percent of earned premiums:Pt. ChangePt. Change
     Loss and loss expenses63.0 %78.9 %(15.9)67.8 %71.6 %(3.8)
     Underwriting expenses29.7 33.4 (3.7)29.0 31.8 (2.8)
           Combined ratio92.7 %112.3 %(19.6)96.8 %103.4 %(6.6)
% Change% Change
Agency renewal written premiums$397 $387 $699 $681 
Agency new business written premiums53 44 20 99 78 27 
Other written premiums(11)(8)(38)(21)(17)(24)
   Net written premiums $439 $423 $777 $742 
Ratios as a percent of earned premiums:Pt. ChangePt. Change
     Current accident year before catastrophe losses55.3 %53.8 %1.5 56.3 %56.9 %(0.6)
     Current accident year catastrophe losses10.9 25.3 (14.4)15.7 18.7 (3.0)
     Prior accident years before catastrophe losses(2.9)0.0 (2.9)(3.7)(3.2)(0.5)
     Prior accident years catastrophe losses(0.3)(0.2)(0.1)(0.5)(0.8)0.3 
           Loss and loss expense ratio63.0 %78.9 %(15.9)67.8 %71.6 %(3.8)
Current accident year combined ratio before
   catastrophe losses
85.0 %87.2 %(2.2)85.3 %88.7 %(3.4)

$16 million or 4% growth in second-quarter 2021 personal lines net written premiums, including higher renewal written premiums that benefited from rate increases averaging in the mid-single-digit percent range. Second-quarter 2021 net written premiums from our agencies’ high net worth clients grew 23%, to $177 million. Five percent growth in six-month personal lines net written premiums.
$9 million or 20% increase in second-quarter 2021 new business premiums written by agencies and six-month increase of 27%, largely reflecting expanded use of enhanced pricing precision tools.
19.6 percentage-point second-quarter 2021 combined ratio improvement and a 6.6 percentage-point improvement for the six-month period. The lower combined ratios included decreases for losses from catastrophes of 14.5 points for the second quarter and 2.7 points for the first six months of 2021.
3.2 percentage-point second-quarter 2021 benefit from favorable prior accident year reserve development of $12 million, compared with 0.2 points or less than $1 million for second-quarter 2020.
4.2 percentage-point six-month 2021 benefit from favorable prior accident year reserve development, compared with 4.0 points for the first six months of 2020.

                                             CINF 2Q21 Release 5



Excess and Surplus Lines Insurance Results
(Dollars in millions)Three months ended June 30,Six months ended June 30,
20212020% Change20212020% Change
Earned premiums$95 $78 22 $184 $156 18 
Fee revenues1 — nm1 
   Total revenues96 78 23 185 157 18 
Loss and loss expenses58 57 117 102 15 
Underwriting expenses28 22 27 50 47 
   Underwriting profit (loss)$10 $(1)nm$18 $125 
Ratios as a percent of earned premiums:Pt. ChangePt. Change
     Loss and loss expenses61.0 %73.6 %(12.6)63.7 %65.5 %(1.8)
     Underwriting expenses28.5 28.4 0.1 27.0 30.0 (3.0)
           Combined ratio89.5 %102.0 %(12.5)90.7 %95.5 %(4.8)
% Change% Change
Agency renewal written premiums $84 $63 33 $160 $125 28 
Agency new business written premiums36 32 13 65 59 10 
Other written premiums(5)(4)(25)(11)(8)(38)
   Net written premiums $115 $91 26 $214 $176 22 
Ratios as a percent of earned premiums:Pt. ChangePt. Change
     Current accident year before catastrophe losses62.0 %59.0 %3.0 61.5 %57.4 %4.1 
     Current accident year catastrophe losses0.4 3.6 (3.2)0.8 2.0 (1.2)
     Prior accident years before catastrophe losses(1.5)11.2 (12.7)1.5 5.9 (4.4)
     Prior accident years catastrophe losses0.1 (0.2)0.3 (0.1)0.2 (0.3)
           Loss and loss expense ratio61.0 %73.6 %(12.6)63.7 %65.5 %(1.8)
Current accident year combined ratio before
   catastrophe losses
90.5 %87.4 %3.1 88.5 %87.4 %1.1 

$24 million or 26% growth in second-quarter 2021 excess and surplus lines net written premiums, including higher renewal written premiums that benefited from price increases averaging in the high-single-digit percent range. Twenty-two percent growth in six-month net written premiums.
$4 million or 13% increase in second-quarter new business written by agencies and six-month increase of 10%, as we continue to carefully underwrite each policy in a highly competitive market.
12.5 percentage-point second-quarter 2021 combined ratio improvement and a 4.8 percentage-point improvement for the six-month period, primarily due to more favorable reserve development on prior accident years.
1.4 percentage-point second-quarter 2021 benefit from favorable prior accident year reserve development of $1 million, compared with 11.0 points or $8 million of unfavorable development for second-quarter 2020.
$3 million of unfavorable prior accident year reserve development for the first six months of 2021, compared with $9 million for the first six months of 2020. The 2021 unfavorable development was due to a first-quarter updated estimate for salaries and expenses to adjust claims.

                                             CINF 2Q21 Release 6



Life Insurance Subsidiary Results
(Dollars in millions)Three months ended June 30,Six months ended June 30,
20212020% Change20212020% Change
Term life insurance$52 $51 $103 $98 
Universal life insurance14 16 (13)21 24 (13)
Other life insurance, annuity, and disability income
   products
13 12 24 24 
    Earned premiums79 79 148 146 
Investment income, net of expenses42 39 83 78 
Investment gains and losses, net4 300 4 (31)nm
Fee revenues1 2 100 
Total revenues126 120 237 194 22 
Contract holders’ benefits incurred85 79 165 152 
Underwriting expenses incurred24 25 (4)42 43 (2)
    Total benefits and expenses109 104 207 195 
Net income (loss) before income tax17 16 30 (1)nm
Income tax provision (benefit)3 (25)6 — nm
Net income (loss) of the life insurance subsidiary$14 $12 17 $24 $(1)nm

Less than $1 million increase in second-quarter 2021 earned premiums, including a 2% increase for term life insurance, our largest life insurance product line.
$25 million increase in six-month 2021 life insurance subsidiary net income, largely reflecting investment losses resulting from impairments of fixed-maturity securities during the first quarter of 2020, partially offset by less favorable mortality experience in the first six months of 2021 due in part to higher pandemic-related death claims incurred in the first three months of 2021.
$8 million or 1% six-month 2021 increase, to $1.425 billion, in GAAP shareholders’ equity for the life insurance subsidiary, primarily from net income that was partially offset by a decrease in unrealized investment gains.

                                             CINF 2Q21 Release 7



Investment and Balance Sheet Highlights
Investments Results
(Dollars in millions)Three months ended June 30,Six months ended June 30,
20212020% Change20212020% Change
Investment income, net of expenses$175 $166 $349 $331 
Investment interest credited to contract holders(27)(25)(8)(53)(51)(4)
Investment gains and losses, net520 1,060 (51)1,024 (665)nm
      Investments profit (loss)$668 $1,201 (44)$1,320 $(385)nm
Investment income:
   Interest$117 $114 $235 $226 
   Dividends60 53 13 118 106 11 
   Other1 (50)3 (40)
   Less investment expenses3 7 17 
      Investment income, pretax175 166 349 331 
      Less income taxes27 25 54 51 
      Total investment income, after-tax$148 $141 $295 $280 
Investment returns:
 Average invested assets plus cash and cash
    equivalents
$22,619 $18,759 $22,259 $19,672 
      Average yield pretax3.09 %3.54 %3.14 %3.37 %
      Average yield after-tax2.62 3.01 2.65 2.85 
      Effective tax rate15.5 15.6 15.5 15.5 
Fixed-maturity returns:
Average amortized cost$11,653 $11,107 $11,570 $11,124 
Average yield pretax4.02 %4.11 %4.06 %4.06 %
Average yield after-tax3.35 3.42 3.38 3.39 
Effective tax rate16.7 16.7 16.7 16.6 

$9 million or 5% rise in second-quarter 2021 pretax investment income, including a 13% increase in equity portfolio dividends and a 3% increase in interest income from fixed-maturity securities.
$652 million second-quarter 2021 pretax total investment gains, summarized in the table below. Changes in unrealized gains or losses reported in other comprehensive income, in addition to investment gains and losses reported in net income, are useful for evaluating total investment performance over time and are major components of changes in book value and the value creation ratio.
(Dollars in millions)Three months ended June 30,Six months ended June 30,
2021202020212020
Investment gains and losses on equity securities sold, net$ $24 $6 $17 
Unrealized gains and losses on equity securities still held, net489 1,044 974 (602)
Investment gains and losses on fixed-maturity securities, net9 — 12 (75)
Other22 (8)32 (5)
Subtotal - investment gains and losses reported in net income520 1,060 1,024 (665)
Change in unrealized investment gains and losses - fixed maturities132 506 (64)182 
Total $652 $1,566 $960 $(483)
                                             CINF 2Q21 Release 8



Balance Sheet Highlights
(Dollars in millions, except share data)At June 30,At December 31,
20212020
   Total investments$23,061 $21,542 
   Total assets29,677 27,542 
   Short-term debt59 54 
   Long-term debt789 788 
   Shareholders’ equity11,858 10,789 
   Book value per share73.57 67.04 
   Debt-to-total-capital ratio6.7 %7.2 %

$24.064 billion in consolidated cash and total investments at June 30, 2021, an increase of 7% from $22.442 billion at year-end 2020.
$12.789 billion bond portfolio at June 30, 2021, with an average rating of A3/A. Fair value increased $481 million during the second quarter of 2021, including $328 million in net purchases of fixed-maturity securities.
$9.897 billion equity portfolio was 42.9% of total investments, including $5.897 billion in appreciated value before taxes at June 30, 2021. Second-quarter 2021 increase in fair value of $537 million or 6%.
$4.41 second-quarter 2021 increase in book value per share, including additions of $1.81 from net income before investment gains, $3.09 from investment portfolio net investment gains or changes in unrealized gains for fixed-maturity securities and $0.14 for other items, partially offset by $0.63 from dividends declared to shareholders.
Value creation ratio of 11.6% for the first six months of 2021, including 4.8% from net income before investment gains, which includes underwriting and investment income, and 6.8% from investment portfolio net investment gains and changes in unrealized gains for fixed-maturity securities.

For additional information or to register for our conference call webcast, please visit cinfin.com/investors.
About Cincinnati Financial
Cincinnati Financial Corporation offers primarily business, home and auto insurance 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 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 2Q21 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 2020 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 34.
Factors that could cause or contribute to such differences include, but are not limited to:
Effects of the COVID-19 pandemic that could affect results for reasons such as:
Securities market disruption or volatility and related effects such as decreased economic activity that affect the company’s investment portfolio and book value
An unusually high level of claims in our insurance or reinsurance operations that increase litigation-related expenses
An unusually high level of insurance losses, including risk of legislation or court decisions extending business interruption insurance in commercial property coverage forms to cover claims for pure economic loss related to the COVID-19 pandemic
Decreased premium revenue and cash flow from disruption to our distribution channel of independent agents, consumer self-isolation, travel limitations, business restrictions and decreased economic activity
Inability of our workforce, agencies or vendors to perform necessary business functions
Ongoing developments concerning business interruption insurance claims and litigation related to the COVID-19 pandemic that affect our estimates of losses and loss adjustment expenses or our ability to reasonably estimate such losses, such as:
The continuing duration of the pandemic and governmental actions to limit the spread of the virus that may produce additional economic losses
The number of policyholders that will ultimately submit claims or file lawsuits
The lack of submitted proofs of loss for allegedly covered claims
Judicial rulings in similar litigation involving other companies in the insurance industry
Differences in state laws and developing case law in the relatively few decisions rendered to date
Litigation trends, including varying legal theories advanced by policyholders
Whether and to what degree any class of policyholders may be certified
The inherent unpredictability of litigation
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, assumptions or reliance on third-party data used for critical accounting estimates
Declines in overall stock market values negatively affecting the company’s equity portfolio and book value
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
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 fair 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
Our inability to integrate Cincinnati Global and its subsidiaries into our ongoing operations, or disruptions to our ongoing operations due to such integration
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; disrupt our relationships with agents, policyholders and others; cause reputational damage, mitigation expenses and data loss and expose us to liability under federal and state laws
Disruption of the insurance market caused by technology innovations such as driverless cars that could decrease consumer demand for insurance products
                                             CINF 2Q21 Release 10


Delays, inadequate data developed internally or from third parties, 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 ceded reinsurance on acceptable terms, amount of reinsurance coverage 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
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 2Q21 Release 11


Cincinnati Financial Corporation
Condensed Consolidated Balance Sheets and Statements of Income (unaudited)
(Dollars in millions)June 30,December 31,
20212020
Assets
   Investments $23,061 $21,542 
   Cash and cash equivalents1,003 900 
   Premiums receivable2,217 1,879 
   Reinsurance recoverable504 517 
Deferred policy acquisition costs924 805 
   Other assets1,968 1,899 
Total assets $29,677 $27,542 
Liabilities
   Insurance reserves $9,999 $9,661 
   Unearned premiums3,417 2,960 
   Deferred income tax1,495 1,299 
   Long-term debt and lease obligations848 845 
   Other liabilities2,060 1,988 
Total liabilities17,819 16,753 
Shareholders’ Equity
   Common stock and paid-in capital1,731 1,725 
   Retained earnings11,205 10,085 
   Accumulated other comprehensive income 731 769 
   Treasury stock(1,809)(1,790)
Total shareholders' equity11,858 10,789 
Total liabilities and shareholders' equity $29,677 $27,542 
(Dollars in millions, except per share data)Three months ended June 30,Six months ended June 30,
2021202020212020
Revenues
   Earned premiums$1,593 $1,482 $3,137 $2,938 
   Investment income, net of expenses175 166 349 331 
   Investment gains and losses, net520 1,060 1,024 (665)
   Other revenues7 12 11 
      Total revenues2,295 2,714 4,522 2,615 
Benefits and Expenses
   Insurance losses and contract holders' benefits915 1,086 1,918 2,089 
   Underwriting, acquisition and insurance expenses490 464 929 920 
   Interest expense13 14 26 27 
   Other operating expenses5 9 10 
      Total benefits and expenses1,423 1,569 2,882 3,046 
Income (Loss) Before Income Taxes872 1,145 1,640 (431)
Provision (Benefit) for Income Taxes169 236 317 (114)
Net Income (Loss)$703 $909 $1,323 $(317)
Per Common Share:
   Net income (loss)—basic$4.36 $5.65 $8.21 $(1.96)
   Net income (loss)—diluted4.31 5.63 8.13 (1.96)
                                             CINF 2Q21 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 for insurance company regulation in the United States of America 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 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 results to improve its understanding of trends in the underlying business and to help avoid incorrect or misleading assumptions and conclusions about the success or failure of company strategies. Management adjustments to GAAP measures generally: apply to non-recurring events that are unrelated to business performance and distort short-term results; involve values that fluctuate based on events outside of management’s control; supplement reporting segment disclosures with disclosures for a subsidiary company or for a combination of subsidiaries or reporting segments; or relate to accounting refinements that affect comparability between periods, creating a need to analyze data on the same basis.
Non-GAAP operating income: Non-GAAP operating income is calculated by excluding investment gains and losses (defined as investment gains and losses after applicable federal and state income taxes) and other significant non-recurring items from net income. Management evaluates non-GAAP operating income to measure the success of pricing, rate and underwriting strategies. While investment gains (or losses) are integral to the company’s insurance operations over the long term, the determination to realize investment gains or losses on fixed-maturity securities sold 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 are recognized from certain changes in market values of securities without actual realization. Management believes that the level of 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 non-GAAP 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 non-GAAP operating income so that all investors have what management believes to be a useful supplement to GAAP information.
•    Consolidated property casualty insurance results: To supplement reporting segment disclosures related to our property casualty insurance operations, we also evaluate results for those operations on a basis that includes results for our property casualty insurance and brokerage services subsidiaries. That is the total of our commercial lines, personal lines and our excess and surplus lines segments plus our reinsurance assumed operations known as Cincinnati Re and our London-based global specialty underwriter known as Cincinnati Global.
Life insurance subsidiary results: To supplement life insurance reporting segment disclosures related to our life insurance operation, we also evaluate results for that operation on a basis that includes life insurance subsidiary investment income, or investment income plus investment gains and losses, that are also included in our investments reporting segment. We recognize that assets under management, capital appreciation and investment income are integral to evaluating the success of the life insurance segment because of the long duration of life products.

                                             CINF 2Q21 Release 13


Cincinnati Financial Corporation
 Net Income Reconciliation
(Dollars in millions, except per share data)Three months ended June 30,Six months ended June 30,
2021202020212020
Net income (loss)$703 $909 $1,323 $(317)
Less:
   Investment gains and losses, net520 1,060 1,024 (665)
   Income tax on investment gains and losses (109)(222)(215)140 
   Investment gains and losses, after-tax411 838 809 (525)
Non-GAAP operating income$292 $71 $514 $208 
Diluted per share data:
Net income (loss)$4.31 $5.63 $8.13 $(1.96)
Less:
   Investment gains and losses, net3.19 6.56 6.29 (4.12)
   Income tax on investment gains and losses (0.67)(1.37)(1.32)0.87 
   Investment gains and losses, after-tax2.52 5.19 4.97 (3.25)
   Non-GAAP operating income$1.79 $0.44 $3.16 $1.29 
Life Insurance Reconciliation
(Dollars in millions)Three months ended June 30,Six months ended June 30,
2021202020212020
Net income (loss) of the life insurance subsidiary$14 $12 $24 $(1)
Investment gains and losses, net 4 4 (31)
Income tax on investment gains and losses1 — 1 (7)
Non-GAAP operating income11 11 21 23 
Investment income, net of expenses (42)(39)(83)(78)
Investment income credited to contract holders27 25 53 51 
Income tax excluding tax on investment gains and
  losses, net
2 5 
Life insurance segment profit (loss)$(2)$$(4)$


                                             CINF 2Q21 Release 14


Property Casualty Insurance Reconciliation
(Dollars in millions)Three months ended June 30, 2021
ConsolidatedCommercialPersonalE&SOther*
Premiums:
   Written premiums $1,714  $977 $439  $115 183 
   Unearned premiums change(200)(66)(57)(20)(57)
   Earned premiums $1,514  $911 $382  $95 $126 
Underwriting profit $221 $145 $29 $10 $37 
(Dollars in millions)Six months ended June 30, 2021
ConsolidatedCommercialPersonalE&SOther*
Premiums:
   Written premiums $3,407 $1,996 $777 $214 $420 
   Unearned premiums change(418)(199)(19)(30)(170)
   Earned premiums $2,989 $1,797 $758 $184 $250 
Underwriting profit $354 $275 $26 $18 $35 
(Dollars in millions)Three months ended June 30, 2020
ConsolidatedCommercialPersonalE&SOther*
Premiums:
   Written premiums$1,559 $908 $423 $91 $137 
   Unearned premiums change(156)(38)(59)(13)(46)
   Earned premiums$1,403 870$364 78$91 
Underwriting profit (loss)$(41)$$(43)$(1)$(5)
(Dollars in millions)Six months ended June 30, 2020
ConsolidatedCommercialPersonalE&SOther*
Premiums:
   Written premiums$3,077 $1,880 $742 $176 $279 
   Unearned premiums change(285)(147)(19)(20)(99)
   Earned premiums$2,792 $1,733 $723 $156 $180 
Underwriting profit (loss)$(17)$(12)$(22)$$
  Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.
*Included in Other are the results of Cincinnati Re and Cincinnati Global.

                                             CINF 2Q21 Release 15


Cincinnati Financial Corporation
Other Measures
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 measure is useful, 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.
•    Written premium: Under statutory accounting rules in the U.S., 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. The difference between written and earned premium is unearned premium.

Value Creation Ratio Calculations
(Dollars are per share)Three months ended June 30,Six months ended June 30,
2021202020212020
Value creation ratio:
   End of period book value* $73.57 $57.56 $73.57 $57.56 
   Less beginning of period book value 69.16 50.02 67.04 60.55 
   Change in book value 4.41 7.54 6.53 (2.99)
   Dividend declared to shareholders0.63 0.60 1.26 1.20 
   Total value creation $5.04 $8.14 $7.79 $(1.79)
Value creation ratio from change in book value**6.4 %15.1 %9.7 %(5.0)%
Value creation ratio from dividends declared to shareholders***0.9 1.2 1.9 2.0 
Value creation ratio7.3 %16.3 %11.6 %(3.0)%
    * Book value per share is calculated by dividing end of period total shareholders' equity by end of period shares outstanding
  ** Change in book value divided by the beginning of period book value
*** Dividend declared to shareholders divided by beginning of period book value

                                             CINF 2Q21 Release 16
EX-99.2 3 exhibit9922q21.htm EX-99.2 Document

Cincinnati Financial Corporation
Supplemental Financial Data
for the period ending June 30, 2021

6200 South Gilmore Road
Fairfield, Ohio 45014-5141
cinfin.com
Investor Contact:Media Contact:Shareholder Contact:
Dennis E. McDanielBetsy E. ErtelBrandon McIntosh
513-870-2768513-603-5323513-870-2696

A.M. Best CompanyFitch RatingsMoody's Investor ServiceS&P Global Ratings
Cincinnati Financial Corporation
Corporate DebtaA-A3BBB+
The Cincinnati Insurance Companies
Insurer Financial Strength
Property Casualty Group
      Standard Market Subsidiaries:A+A1A+
             The Cincinnati Insurance CompanyA+A+A1A+
             The Cincinnati Indemnity CompanyA+A+A1A+
             The Cincinnati Casualty CompanyA+A+A1A+
      Surplus Lines Subsidiary:
             The Cincinnati Specialty Underwriters Insurance CompanyA+
The Cincinnati Life Insurance CompanyA+A+A+

Ratings are as of July 27, 2021, 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 Second-Quarter 2021 Supplemental Financial Data
1


Cincinnati Financial Corporation
Supplemental Financial Data
for the period ending June 30, 2021
Page
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures3
Consolidated
CFC and Subsidiaries Consolidation – Six Months Ended June 30, 20214
CFC and Subsidiaries Consolidation – Three Months Ended June 30, 20215
Consolidated Property Casualty Insurance Operations
Losses Incurred Detail6
Loss Ratio Detail7
Loss Claim Count Detail8
Quarterly Property Casualty Data – Commercial Lines9
Quarterly Property Casualty Data – Personal Lines and Excess & Surplus Lines10
Loss and Loss Expense Analysis – Six Months Ended June 30, 202111
Loss and Loss Expense Analysis – Three Months Ended June 30, 202112
Reconciliation Data
Quarterly Property Casualty Data – Consolidated13
Quarterly Property Casualty Data – Commercial Lines14
Quarterly Property Casualty Data – Personal Lines15
Quarterly Property Casualty Data – Excess & Surplus Lines16
Statutory Statements of Income
Consolidated Cincinnati Insurance Companies Statutory Statements of Income17
The Cincinnati Life Insurance Company Statutory Statements of Income18
Other
Quarterly Data – Other19

CINF Second-Quarter 2021 Supplemental Financial Data
2


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 for insurance company regulation in the United States of America 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 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 results to improve its understanding of trends in the underlying business and to help avoid incorrect or misleading assumptions and conclusions about the success or failure of company strategies. Management adjustments to GAAP measures generally: apply to non-recurring events that are unrelated to business performance and distort short-term results; involve values that fluctuate based on events outside of management’s control; supplement reporting segment disclosures with disclosures for a subsidiary company or for a combination of subsidiaries or reporting segments; or relate to accounting refinements that affect comparability between periods, creating a need to analyze data on the same basis.
Non-GAAP operating income: Non-GAAP operating income is calculated by excluding investment gains and losses (defined as investment gains and losses after applicable federal and state income taxes) and other significant non-recurring items from net income. Management evaluates non-GAAP operating income to measure the success of pricing, rate and underwriting strategies. While investment gains (or losses) are integral to the company’s insurance operations over the long term, the determination to realize investment gains or losses on fixed-maturity securities sold 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 are recognized from certain changes in market values of securities without actual realization. Management believes that the level of 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 non-GAAP 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 non-GAAP operating income so that all investors have what management believes to be a useful supplement to GAAP information.
•    Consolidated property casualty insurance results: To supplement reporting segment disclosures related to our property casualty insurance operations, we also evaluate results for those operations on a basis that includes results for our property casualty insurance and brokerage services subsidiaries. That is the total of our commercial lines, personal lines and our excess and surplus lines segments plus our reinsurance assumed operations known as Cincinnati Re and our London-based global specialty underwriter known as Cincinnati Global.
Life insurance subsidiary results: To supplement life insurance reporting segment disclosures related to our life insurance operation, we also evaluate results for that operation on a basis that includes life insurance subsidiary investment income, or investment income plus investment gains and losses, that are also included in our investments reporting segment. We recognize that assets under management, capital appreciation and investment income are integral to evaluating the success of the life insurance segment because of the long duration of life products.
Other Measures
•    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 measure is useful, 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 for insurance company regulation in the United States of America as defined in the NAIC’s Accounting Practices and Procedures Manual, which may be, and has been, modified by various state insurance departments and differ from GAAP. 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 in the U.S., 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. The difference between written and earned premium is unearned premium.
CINF Second-Quarter 2021 Supplemental Financial Data
3


Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Six Months Ended June 30, 2021
(Dollars in millions)CFCCONSOL P&CCLICCFC-IELIMTotal
Revenues
  Premiums earned:
    Property casualty$— $3,104 $— $— $— $3,104 
    Life— — 185 — — 185 
    Premiums ceded— (115)(37)— — (152)
      Total earned premium— 2,989 148 — — 3,137 
  Investment income, net of expenses43 223 83 — — 349 
  Investment gains and losses, net405 615 — — 1,024 
  Fee revenues— — — 
  Other revenues— (8)
Total revenues$456 $3,834 $237 $3 $(8)$4,522 
Benefits & expenses
  Losses & contract holders' benefits$— $1,781 $207 $— $— $1,988 
  Reinsurance recoveries— (28)(42)— — (70)
  Underwriting, acquisition and insurance expenses— 887 42 — — 929 
  Interest expense26 — — — — 26 
  Other operating expenses16 — — (8)
Total expenses$42 $2,640 $207 $1 $(8)$2,882 
Income before income taxes$414 $1,194 $30 $2 $ $1,640 
Provision for income taxes
  Current operating income (loss)$(88)$(22)$$— $— $(104)
  Capital gains/losses85 129 — — 215 
  Deferred86 121 (1)— — 206 
Total provision for income taxes$83 $228 $6 $ $ $317 
Net income - current year$331 $966 $24 $2 $ $1,323 
Net income (loss) - prior year$(111)$(207)$(1)$$— $(317)
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.
Consolidated property casualty data includes results from our Cincinnati Re operations and Cincinnati Global.
CINF Second-Quarter 2021 Supplemental Financial Data
4


Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Three Months Ended June 30, 2021
(Dollars in millions)CFCCONSOL P&CCLICCFC-IELIMTotal
Revenues
  Premiums earned:
    Property casualty$— $1,574 $— $— $— $1,574 
    Life— — 98 — — 98 
    Premiums ceded— (60)(19)— — (79)
      Total earned premium— 1,514 79 — — 1,593 
  Investment income, net of expenses22 111 42 — — 175 
  Investment gains and losses, net232 284 — — 520 
  Fee revenues— — — 
  Other revenues— (4)
Total revenues$258 $1,913 $126 $2 $(4)$2,295 
Benefits & expenses
  Losses & contract holders' benefits$— $835 $100 $— $— $935 
  Reinsurance recoveries— (5)(15)— — (20)
  Underwriting, acquisition and insurance expenses— 466 24 — — 490 
  Interest expense13 — — — — 13 
  Other operating expenses— — — (4)
Total expenses$22 $1,296 $109 $ $(4)$1,423 
Income before income taxes$236 $617 $17 $2 $ $872 
Provision for income taxes
  Current operating income (loss)$(48)$11 $$— $— $(34)
  Capital gains/losses49 59 — — 109 
  Deferred48 47 (1)— — 94 
Total provision for income taxes$49 $117 $3 $ $ $169 
Net income - current year$187 $500 $14 $2 $ $703 
Net income - prior year$377 $518 $12 $$— $909 
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.
Consolidated property casualty data includes results from our Cincinnati Re operations and Cincinnati Global.
CINF Second-Quarter 2021 Supplemental Financial Data
5


Consolidated Property Casualty
Losses Incurred Detail
(Dollars in millions)Three months endedSix months endedNine months endedTwelve months ended
12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/206/30/216/30/209/30/219/30/2012/31/2112/31/20
Consolidated
Current accident year losses greater than $5 million$38 $$10 $21 $19 $— $43 $19 $40 $50 
Current accident year losses $1 million - $5 million51 31 52 46 53 50 82 103 149 202 
Large loss prior accident year reserve development13 24 13 (3)26 37 33 30 42 
   Total large losses incurred$102 $60 $75 $64 $79 $76 $162 $155 $219 $294 
Losses incurred but not reported(37)102 60 38 134 79 65 213 251 310 
Other losses excluding catastrophe losses577 451 454 550 409 496 1,028 905 1,455 1,909 
Catastrophe losses56 150 58 261 226 123 206 349 611 670 
   Total losses incurred$698 $763 $647 $913 $848 $774 $1,461 $1,622 $2,536 $3,183 
Commercial Lines
Current accident year losses greater than $5 million$38 $$10 $21 $19 $— $43 $19 $40 $50 
Current accident year losses $1 million - $5 million29 26 35 20 45 36 55 81 100 135 
Large loss prior accident year reserve development14 26 10 (1)22 40 27 27 36 
   Total large losses incurred$81 $57 $55 $40 $69 $58 $138 $127 $167 $221 
Losses incurred but not reported(34)39 50 60 72 58 5 130 190 240 
Other losses excluding catastrophe losses326 261 255 287 233 298 587 531 817 1,073 
Catastrophe losses27 35 23 125 119 82 62 201 327 350 
   Total losses incurred$400 $392 $383 $512 $493 $496 $792 $989 $1,501 $1,884 
Personal Lines
Current accident year losses greater than $5 million$ $— $— $— $— $— $ $— $— $— 
Current accident year losses $1 million - $5 million15 16 21 12 19 20 42 59 
Large loss prior accident year reserve development(2)(1)(2)(3)
   Total large losses incurred$13 $$18 $19 $10 $17 $16 $27 $46 $65 
Losses incurred but not reported(4)41 (1)(24)41 24 37 65 41 39 
Other losses excluding catastrophe losses158 130 134 156 105 127 288 232 388 523 
Catastrophe losses39 74 81 89 38 113 127 208 216 
   Total losses incurred$206 $248 $159 $232 $245 $206 $454 $451 $683 $843 
Excess & Surplus Lines
Current accident year losses greater than $5 million$ $— $— $— $— $— $ $— $— $— 
Current accident year losses $1 million - $5 million7 — 8 
Large loss prior accident year reserve development1 (1)— — (1) (1)(1)— 
   Total large losses incurred$8 $— $$$— $$8 $$$
Losses incurred but not reported1 22 11 21 (3)23 18 20 31 
Other losses excluding catastrophe losses34 15 21 24 20 29 49 50 74 95 
Catastrophe losses — 1 
   Total losses incurred$43 $38 $34 $32 $44 $28 $81 $72 $104 $139 
*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.
Consolidated property casualty data includes results from our Cincinnati Re operations and Cincinnati Global.
CINF Second-Quarter 2021 Supplemental Financial Data
6


Consolidated Property Casualty
Loss Ratio Detail
Three months endedSix months endedNine months endedTwelve months ended
12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/206/30/216/30/209/30/219/30/2012/31/2112/31/20
Consolidated
Current accident year losses greater than $5 million2.5 %0.3 %0.7 %1.5 %1.4 %— %1.4 %0.7 %0.9 %0.9 %
Current accident year losses $1 million - $5 million3.4 2.2 3.6 3.2 3.7 3.6 2.8 3.7 3.5 3.6 
Large loss prior accident year reserve development0.9 1.6 0.9 (0.3)0.5 1.9 1.2 1.2 0.8 0.7 
   Total large loss ratio6.8 %4.1 %5.2 %4.4 %5.6 %5.5 %5.4 %5.6 %5.2 %5.2 %
Losses incurred but not reported(2.4)6.9 4.1 2.6 9.6 5.7 2.2 7.6 5.9 5.5 
Other losses excluding catastrophe losses38.0 30.5 31.3 38.0 29.2 35.6 34.4 32.4 34.3 33.4 
Catastrophe losses3.7 10.2 4.0 18.0 16.1 8.9 6.9 12.5 14.4 11.8 
   Total loss ratio46.1 %51.7 %44.6 %63.0 %60.5 %55.7 %48.9 %58.1 %59.8 %55.9 %
Commercial Lines
Current accident year losses greater than $5 million4.2 %0.6 %1.1 %2.5 %2.2 %— %2.4 %1.1 %1.5 %1.4 %
Current accident year losses $1 million - $5 million3.2 2.9 4.0 2.3 5.1 4.1 3.1 4.6 3.9 4.0 
Large loss prior accident year reserve development1.4 3.0 1.1 (0.2)0.6 2.6 2.2 1.6 1.0 1.0 
   Total large loss ratio8.8 %6.5 %6.2 %4.6 %7.9 %6.7 %7.7 %7.3 %6.4 %6.4 %
Losses incurred but not reported(3.6)4.3 5.7 6.9 8.3 6.8 0.3 7.5 7.3 6.9 
Other losses excluding catastrophe losses35.7 29.4 29.0 33.1 26.8 34.5 32.6 30.7 31.5 30.8 
Catastrophe losses3.0 4.0 2.7 14.5 13.6 9.5 3.5 11.6 12.6 10.1 
   Total loss ratio43.9 %44.2 %43.6 %59.1 %56.6 %57.5 %44.1 %57.1 %57.8 %54.2 %
Personal Lines
Current accident year losses greater than $5 million %— %— %— %— %— % %— %— %— %
Current accident year losses $1 million - $5 million4.0 1.2 4.4 5.8 2.3 3.5 2.5 2.9 3.8 4.0 
Large loss prior accident year reserve development(0.5)(0.3)0.6 (0.7)0.5 1.3 (0.3)0.9 0.4 0.4 
   Total large loss ratio3.5 %0.9 %5.0 %5.1 %2.8 %4.8 %2.2 %3.8 %4.2 %4.4 %
Losses incurred but not reported(1.1)11.0 (0.3)(6.6)11.3 6.6 4.9 8.9 3.7 2.7 
Other losses excluding catastrophe losses41.4 34.4 36.0 42.5 28.8 35.3 37.9 32.2 35.6 35.8 
Catastrophe losses10.3 19.6 2.1 22.1 24.6 10.5 14.9 17.5 19.1 14.7 
   Total loss ratio54.1 %65.9 %42.8 %63.1 %67.5 %57.2 %59.9 %62.4 %62.6 %57.6 %
Excess & Surplus Lines
Current accident year losses greater than $5 million %— %— %— %— %— % %— %— %— %
Current accident year losses $1 million - $5 million7.5 1.2 1.1 6.4 — 2.6 4.5 1.3 3.0 2.5 
Large loss prior accident year reserve development1.3 (1.7)1.2 0.1 0.1 (1.5)(0.2)(0.7)(0.4)— 
   Total large loss ratio8.8 %(0.5)%2.3 %6.5 %0.1 %1.1 %4.3 %0.6 %2.6 %2.5 %
Losses incurred but not reported0.8 24.8 12.6 2.6 27.2 (4.4)12.3 11.3 8.4 9.5 
Other losses excluding catastrophe losses35.0 17.8 24.3 29.5 25.8 37.8 26.8 31.9 31.0 29.3 
Catastrophe losses0.4 1.0 0.4 1.2 3.3 0.9 0.7 2.1 1.8 1.4 
   Total loss ratio45.0 %43.1 %39.6 %39.8 %56.4 %35.4 %44.1 %45.9 %43.8 %42.7 %
*Certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.
Consolidated property casualty data includes results from our Cincinnati Re operations and Cincinnati Global.
CINF Second-Quarter 2021 Supplemental Financial Data
7


Consolidated Property Casualty
Loss Claim Count Detail
Three months endedSix months endedNine months endedTwelve months ended
12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/206/30/216/30/209/30/219/30/2012/31/2112/31/20
Consolidated
Current accident year reported losses greater
   than $5 million
6 — 7 
Current accident year reported losses
   $1 million - $5 million
35 24 37 34 28 27 59 55 85 117 
Prior accident year reported losses on
   large losses
12 20 14 13 20 32 27 41 49 
   Non-Catastrophe reported losses on
      large losses total
53 45 53 49 39 47 98 84 131 173 
Commercial Lines
Current accident year reported losses greater
   than $5 million
6 — 7 
Current accident year reported losses
   $1 million - $5 million
19 20 26 19 24 17 39 41 57 79 
Prior accident year reported losses on
   large losses
8 18 11 12 17 26 23 36 41 
   Non-Catastrophe reported losses on
      large losses total
33 39 39 33 34 34 72 66 98 127 
Personal Lines
Current accident year reported losses greater
   than $5 million
 — — — — —  — — — 
Current accident year reported losses
   $1 million - $5 million
11 10 14 12 21 31 
Prior accident year reported losses on
   large losses
1 — — 3 
   Non-Catastrophe reported losses on
      large losses total
12 12 11 17 15 24 36 
Excess & Surplus Lines
Current accident year reported losses greater
   than $5 million
 — — — — —  — — — 
Current accident year reported losses
   $1 million - $5 million
5 — 6 
Prior accident year reported losses on
   large losses
3 — — 3 
   Non-Catastrophe reported losses on
      large losses total
8 9 10 
*The sum of quarterly amounts may not equal the full year as each is computed independently.
CINF Second-Quarter 2021 Supplemental Financial Data
8


Quarterly Property Casualty Data - Commercial Lines
(Dollars in millions)Three months endedSix months endedNine months endedTwelve months ended
12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/206/30/216/30/209/30/219/30/2012/31/2112/31/20
Commercial casualty:
Written premiums$338 $363 $287 $269 $308 $341 $701 $649 $918 $1,205 
Year over year change %- written premium10 %%%%%13 %8 %%%%
Earned premiums$312 $303 $297 $290 $289 $289 $615 $577 $868 $1,165 
Current accident year before catastrophe losses61.5 %64.5 %64.5 %63.1 %62.6 %65.8 %63.0 %64.1 %63.8 %64.0 %
Current accident year catastrophe losses — — — — —  — — — 
Prior accident years before catastrophe losses(8.3)(2.2)(6.1)(3.2)(7.5)(1.6)(5.3)(4.5)(4.1)(4.6)
Prior accident years catastrophe losses — — — — —  — — — 
   Total loss and loss expense ratio53.2 %62.3 %58.4 %59.9 %55.1 %64.2 %57.7 %59.6 %59.7 %59.4 %
Commercial property:
Written premiums$275 $267 $246 $252 $260 $261 $542 $521 $773 $1,019 
Year over year change %- written premium6 %%— %%%%4 %%%%
Earned premiums$259 $253 $255 $252 $254 $249 $512 $504 $755 $1,010 
Current accident year before catastrophe losses47.3 %53.8 %52.9 %53.0 %50.9 %47.8 %50.5 %49.4 %50.6 %51.2 %
Current accident year catastrophe losses14.0 20.0 13.2 50.5 48.5 34.2 16.9 41.4 44.4 36.5 
Prior accident years before catastrophe losses(1.1)(2.0)(2.4)(1.3)1.9 0.7 (1.5)1.3 0.5 (0.3)
Prior accident years catastrophe losses(3.8)(6.3)(2.5)0.3 (2.0)(1.1)(5.0)(1.6)(1.0)(1.3)
   Total loss and loss expense ratio56.4 %65.5 %61.2 %102.5 %99.3 %81.6 %60.9 %90.5 %94.5 %86.1 %
Commercial auto:
Written premiums$216 $223 $179 $171 $205 $208 $439 $413 $584 $763 
Year over year change %- written premium5 %%%(3)%%11 %6 %%%%
Earned premiums$198 $193 $192 $189 $189 $185 $391 $374 $563 $755 
Current accident year before catastrophe losses63.0 %63.1 %57.1 %56.2 %64.2 %70.9 %63.0 %67.5 %63.7 %62.1 %
Current accident year catastrophe losses1.5 1.6 — 0.4 2.2 1.2 1.6 1.7 1.3 0.9 
Prior accident years before catastrophe losses(6.0)(12.4)1.4 5.5 (1.1)3.3 (9.2)1.1 2.5 2.3 
Prior accident years catastrophe losses(0.2)(0.3)— (0.1)— (0.2)(0.2)(0.1)(0.1)(0.1)
   Total loss and loss expense ratio58.3 %52.0 %58.5 %62.0 %65.3 %75.2 %55.2 %70.2 %67.4 %65.2 %
Workers' compensation:
Written premiums$69 $88 $58 $51 $65 $92 $157 $157 $208 $266 
Year over year change %- written premium6 %(4)%(8)%(18)%(13)%(2)% %(7)%(10)%(10)%
Earned premiums$68 $67 $64 $64 $68 $75 $135 $143 $207 $271 
Current accident year before catastrophe losses87.6 %76.6 %82.3 %81.7 %81.8 %81.1 %82.2 %81.4 %81.5 %81.7 %
Current accident year catastrophe losses — — — — —  — — — 
Prior accident years before catastrophe losses(39.2)(37.9)(10.4)(9.6)(27.8)(9.8)(38.6)(18.3)(15.7)(14.4)
Prior accident years catastrophe losses — — — — —  — — — 
   Total loss and loss expense ratio48.4 %38.7 %71.9 %72.1 %54.0 %71.3 %43.6 %63.1 %65.8 %67.3 %
Other commercial:
Written premiums$79 $78 $70 $71 $70 $70 $157 $140 $211 $281 
Year over year change %- written premium13 %11 %%%%%12 %%%%
Earned premiums$74 $70 $70 $70 $70 $65 $144 $135 $205 $275 
Current accident year before catastrophe losses38.0 %38.2 %38.5 %36.0 %35.5 %39.1 %38.1 %37.3 %36.9 %37.3 %
Current accident year catastrophe losses0.1 — — 0.3 0.1 0.1  0.1 0.2 0.1 
Prior accident years before catastrophe losses(11.2)(7.7)(2.8)(0.7)(1.7)1.7 (9.5)(0.1)(0.3)(0.9)
Prior accident years catastrophe losses — 0.1 (0.1)— 0.2  0.1 — — 
   Total loss and loss expense ratio26.9 %30.5 %35.8 %35.5 %33.9 %41.1 %28.6 %37.4 %36.8 %36.5 %
*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 Second-Quarter 2021 Supplemental Financial Data
9


Quarterly Property Casualty Data - Personal Lines
(Dollars in millions)Three months endedSix months endedNine months endedTwelve months ended
12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/206/30/216/30/209/30/219/30/2012/31/2112/31/20
Personal auto:
Written premiums$166 $136 $139 $166 $169 $137 $302 $306 $472 $611 
Year over year change %- written premium(2)%(1)%(1)%— %(2)%(2)%(1)%(2)%(1)%(2)%
Earned premiums$152 $152 $153 $154 $154 $154 $305 $308 $462 $615 
Current accident year before catastrophe losses64.5 %66.1 %46.6 %48.5 %64.7 %69.4 %65.3 %67.0 %60.9 %57.3 %
Current accident year catastrophe losses1.7 2.6 — 2.6 1.5 2.1 2.2 1.8 2.0 1.6 
Prior accident years before catastrophe losses(5.5)(9.3)2.6 0.5 (4.2)(8.1)(7.5)(6.1)(3.9)(2.3)
Prior accident years catastrophe losses(0.2)(0.5)— — (0.2)(0.4)(0.3)(0.3)(0.2)(0.2)
   Total loss and loss expense ratio60.5 %58.9 %49.2 %51.6 %61.8 %63.0 %59.7 %62.4 %58.8 %56.4 %
Homeowner:
Written premiums$211 $156 $167 $189 $197 $140 $367 $337 $526 $693 
Year over year change %- written premium7 %11 %10 %%12 %%9 %10 %10 %10 %
Earned premiums$178 $174 $171 $165 $163 $159 $352 $322 $487 $658 
Current accident year before catastrophe losses50.2 %51.6 %45.2 %48.2 %45.0 %53.5 %50.9 %49.2 %48.9 %47.9 %
Current accident year catastrophe losses20.7 41.1 7.5 46.1 51.7 23.8 30.8 37.9 40.7 32.1 
Prior accident years before catastrophe losses0.9 (0.5)3.2 1.7 4.5 (8.7)0.2 (2.0)(0.8)0.3 
Prior accident years catastrophe losses(0.5)(0.7)0.2 (1.6)(0.1)(2.3)(0.6)(1.2)(1.3)(1.0)
   Total loss and loss expense ratio71.3 %91.5 %56.1 %94.4 %101.1 %66.3 %81.3 %83.9 %87.5 %79.3 %
Other personal:
Written premiums$62 $46 $48 $52 $57 $42 $108 $99 $151 $199 
Year over year change %- written premium9 %10 %12 %%%%9 %%%%
Earned premiums$52 $50 $49 $48 $47 $46 $101 $93 $141 $190 
Current accident year before catastrophe losses45.9 %50.0 %49.1 %49.6 %48.5 %50.5 %48.0 %49.5 %49.5 %49.4 %
Current accident year catastrophe losses3.9 3.6 (0.3)10.6 11.8 4.6 3.7 8.2 9.0 6.6 
Prior accident years before catastrophe losses(8.6)(3.8)0.3 (0.7)(1.4)6.3 (6.2)2.4 1.4 1.1 
Prior accident years catastrophe losses0.4 (1.5)(0.4)(0.2)(0.7)(0.6)(0.6)(0.6)(0.5)(0.4)
   Total loss and loss expense ratio41.6 %48.3 %48.7 %59.3 %58.2 %60.8 %44.9 %59.5 %59.4 %56.7 %
Quarterly Property Casualty Data - Excess & Surplus Lines
(Dollars in millions)Three months endedSix months endedNine months endedTwelve months ended
12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/206/30/216/30/209/30/219/30/2012/31/2112/31/20
Excess & Surplus:
Written premiums$115 $99 $92 $80 $91 $85 $214 $176 $256 $348 
Year over year change %- written premium26 %16 %15 %%17 %20 %22 %18 %15 %15 %
Earned premiums$95 $89 $87 $82 $78 $78 $184 $156 $238 $325 
Current accident year before catastrophe losses62.0 %61.0 %57.6 %58.5 %59.0 %55.7 %61.5 %57.4 %57.8 %57.7 %
Current accident year catastrophe losses0.4 1.3 0.4 1.0 3.6 0.5 0.8 2.0 1.7 1.3 
Prior accident years before catastrophe losses(1.5)4.7 (1.5)(1.5)11.2 0.7 1.5 5.9 3.4 2.1 
Prior accident years catastrophe losses0.1 (0.3)0.1 0.2 (0.2)0.5 (0.1)0.2 0.1 0.2 
   Total loss and loss expense ratio61.0 %66.7 %56.6 %58.2 %73.6 %57.4 %63.7 %65.5 %63.0 %61.3 %
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.
CINF Second-Quarter 2021 Supplemental Financial Data
10


Consolidated Property Casualty Loss and Loss Expense Analysis
(Dollars in millions)Change inChange inChange inTotalLoss
PaidPaid lossTotalcaseIBNRloss expensechange inCaseIBNRexpenseTotal
lossesexpensepaidreservesreservesreservesreservesincurredincurredincurredincurred
Gross loss and loss expense incurred for the six months ended June 30, 2021
  Commercial casualty$202 $86 $288 $32 $(6)$41 $67 $234 $(6)$127 $355 
  Commercial property283 32 315 (16)23 (6)1 267 23 26 316 
  Commercial auto178 36 214 13 (18)1 184 13 18 215 
  Workers' compensation67 15 82 18 (29)(3)(14)85 (29)12 68 
  Other commercial28 33 (1)10 37 (1)43 
    Total commercial lines758 174 932 49 — 16 65 807 — 190 997 
  Personal auto141 33 174 (5)7 145 28 181 
  Homeowners168 24 192 15 58 78 183 58 29 270 
  Other personal33 36 — 9 38 45 
    Total personal lines342 60 402 24 70 — 94 366 70 60 496 
  Excess & surplus lines42 19 61 18 24 17 59 60 24 36 120 
  Other103 108 (1)60 60 102 60 168 
      Total property casualty$1,245 $258 $1,503 $90 $154 $34 $278 $1,335 $154 $292 $1,781 
Ceded loss and loss expense incurred for the six months ended June 30, 2021
  Commercial casualty$(3)$— $(3)$$— $(1)$3 $$— $(1)$ 
  Commercial property35 — 35 (27)(4)— (31)(4)— 4 
  Commercial auto— —  (1)— — (1)(1)— — (1)
  Workers' compensation— 5 — — 5 10 — — 10 
  Other commercial— 1 — — —  — — 1 
    Total commercial lines38 — 38 (19)(4)(1)(24)19 (4)(1)14 
  Personal auto— 1 (2)— — (2)(1)— — (1)
  Homeowners(19)— (19)(2)— 2 (15)(2)— (17)
  Other personal— —  — — —  — — —  
    Total personal lines(18)— (18)(2)—  (16)(2)— (18)
  Excess & surplus lines— 2 (1)— 1 — 3 
  Other— 9 — 20 — 20 20 — 29 
      Total property casualty$31 $— $31 $(18)$16 $(1)$(3)$13 $16 $(1)$28 
Net loss and loss expense incurred for the six months ended June 30, 2021
  Commercial casualty$205 $86 $291 $28 $(6)$42 $64 $233 $(6)$128 $355 
  Commercial property248 32 280 11 27 (6)32 259 27 26 312 
  Commercial auto178 36 214 13 (18)2 185 13 18 216 
  Workers' compensation62 15 77 13 (29)(3)(19)75 (29)12 58 
  Other commercial27 32 (1)10 36 (1)42 
    Total commercial lines720 174 894 68 17 89 788 191 983 
  Personal auto140 33 173 (5)9 146 28 182 
  Homeowners187 24 211 11 60 76 198 60 29 287 
  Other personal33 36 — 9 38 45 
    Total personal lines360 60 420 22 72 — 94 382 72 60 514 
  Excess & surplus lines40 19 59 19 22 17 58 59 22 36 117 
  Other94 99 (1)40 40 93 40 139 
      Total property casualty$1,214 $258 $1,472 $108 $138 $35 $281 $1,322 $138 $293 $1,753 
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.
Other data includes results from our Cincinnati Re operations and Cincinnati Global.
CINF Second-Quarter 2021 Supplemental Financial Data
11


Consolidated Property Casualty Loss and Loss Expense Analysis
(Dollars in millions)Change inChange inChange inTotalLoss
PaidPaid lossTotalcaseIBNRloss expensechange inCaseIBNRexpenseTotal
lossesexpensepaidreservesreservesreservesreservesincurredincurredincurredincurred
Gross loss and loss expense incurred for the three months ended June 30, 2021
  Commercial casualty$108 $38 $146 $24 $(21)$$9 $132 $(21)$44 $155 
  Commercial property143 14 157 12 (16)(2)(6)155 (16)12 151 
  Commercial auto96 16 112 (3)3 93 17 115 
  Workers' compensation34 41 (3)(4)(1)40 (3)40 
  Other commercial14 17 (5)4 22 (5)21 
    Total commercial lines395 78 473 47 (40)9 442 (40)80 482 
  Personal auto75 16 91 (6)— 1 82 (6)16 92 
  Homeowners83 11 94 17 88 16 111 
  Other personal20 22 (5)— (1)24 (5)21 
    Total personal lines178 29 207 16 (4)17 194 (4)34 224 
  Excess & surplus lines21 29 22 31 43 15 60 
  Other48 51 16 18 49 16 69 
      Total property casualty$642 $118 $760 $86 $(26)$15 $75 $728 $(26)$133 $835 
Ceded loss and loss expense incurred for the three months ended June 30, 2021
  Commercial casualty$(3)$— $(3)$(8)$— $— $(8)$(11)$— $— $(11)
  Commercial property— 4 (1)— 1 (1)— 5 
  Commercial auto— —  — — —  — — —  
  Workers' compensation— 3 — — 4 — — 7 
  Other commercial— —  — — 1 — — 1 
    Total commercial lines— 4 (1)(1)— (2)(1)— 2 
  Personal auto— —  — — —  — — —  
  Homeowners(20)— (20)(1)— 4 (15)(1)— (16)
  Other personal— —  (1)— — (1)(1)— — (1)
    Total personal lines(20)— (20)(1)— 3 (16)(1)— (17)
  Excess & surplus lines— 2 (1)—  — 2 
  Other— 7 — 11 — 11 11 — 18 
      Total property casualty$(7)$— $(7)$$10 $— $12 $(5)$10 $— $5 
Net loss and loss expense incurred for the three months ended June 30, 2021
  Commercial casualty$111 $38 $149 $32 $(21)$$17 $143 $(21)$44 $166 
  Commercial property139 14 153 10 (15)(2)(7)149 (15)12 146 
  Commercial auto96 16 112 (3)3 93 17 115 
  Workers' compensation31 38 (3)(4)(5)33 (3)33 
  Other commercial14 17 (5)3 21 (5)20 
    Total commercial lines391 78 469 48 (39)11 439 (39)80 480 
  Personal auto75 16 91 (6)— 1 82 (6)16 92 
  Homeowners103 11 114 — 13 103 16 127 
  Other personal20 22 (5)—  25 (5)22 
    Total personal lines198 29 227 12 (3)14 210 (3)34 241 
  Excess & surplus lines19 27 23 31 42 15 58 
  Other41 44 7 42 51 
      Total property casualty$649 $118 $767 $84 $(36)$15 $63 $733 $(36)$133 $830 
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.
Other data includes results from our Cincinnati Re operations and Cincinnati Global.
CINF Second-Quarter 2021 Supplemental Financial Data
12


Quarterly Property Casualty Data - Consolidated
(Dollars in millions)Three months endedSix months endedNine months endedTwelve months ended
12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/206/30/216/30/209/30/219/30/2012/31/2112/31/20
Premiums
   Agency renewal written premiums$1,333 $1,276 $1,145 $1,153 $1,244 $1,198 $2,609 $2,442 $3,595 $4,740 
   Agency new business written premiums235 220 185 189 210 215 455 425 614 799 
   Other written premiums146 197 64 51 105 105 343 210 261 325 
   Net written premiums $1,714 $1,693 $1,394 $1,393 $1,559 $1,518 $3,407 $3,077 $4,470 $5,864 
   Unearned premium change(200)(218)55 57 (156)(129)(418)(285)(228)(173)
   Earned premiums$1,514 $1,475 $1,449 $1,450 $1,403 $1,389 $2,989 $2,792 $4,242 $5,691 
Year over year change %
   Agency renewal written premiums7 %%%%%%7 %%%%
   Agency new business written premiums12 (4)(2)(1)19 7 
   Other written premiums39 88 106 28 35 50 63 42 39 48 
   Net written premiums 10 12 10 11 
Paid losses and loss expenses
   Losses paid$649 $564 $690 $628 $624 $663 $1,214 $1,289 $1,917 $2,607 
   Loss expenses paid118 141 146 151 127 154 258 279 430 576 
   Loss and loss expenses paid$767 $705 $836 $779 $751 $817 $1,472 $1,568 $2,347 $3,183 
Incurred losses and loss expenses
   Loss and loss expense incurred$830 $923 $829 $1,071 $1,007 $930 $1,753 $1,937 $3,008 $3,837 
   Loss and loss expenses paid as a % of incurred92.4 %76.4 %100.8 %72.7 %74.6 %87.7 %84.0 %80.9 %78.0 %83.0 %
Statutory combined ratio
   Loss ratio47.0 %52.0 %44.5 %59.8 %60.4 %56.1 %49.4 %58.2 %58.8 %55.1 %
   Loss adjustment expense ratio8.9 11.0 12.9 11.3 11.6 11.3 10.0 11.5 11.4 11.8 
   Net underwriting expense ratio29.2 26.7 31.2 30.2 28.8 29.2 28.0 29.0 29.3 29.8 
   US Statutory combined ratio85.1 %89.7 %88.6 %101.3 %100.8 %96.6 %87.4 %98.7 %99.5 %96.7 %
   Contribution from catastrophe losses4.6 10.1 3.6 16.0 15.8 9.3 7.3 12.6 13.7 11.2 
   Statutory combined ratio excl. catastrophe losses80.5 %79.6 %85.0 %85.3 %85.0 %87.3 %80.1 %86.1 %85.8 %85.5 %
GAAP combined ratio
   GAAP combined ratio85.5 %91.2 %87.3 %103.6 %103.1 %98.5 %88.3 %100.8 %101.8 %98.1 %
   Contribution from catastrophe losses3.9 10.4 4.7 18.3 16.5 9.1 7.1 12.8 14.7 12.1 
   GAAP combined ratio excl. catastrophe losses81.6 %80.8 %82.6 %85.3 %86.6 %89.4 %81.2 %88.0 %87.1 %86.0 %
*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 ratios exclude the results of Cincinnati Global.
Consolidated property casualty data includes the results of Cincinnati Re and Cincinnati Global.
CINF Second-Quarter 2021 Supplemental Financial Data
13


Quarterly Property Casualty Data - Commercial Lines
(Dollars in millions)Three months endedSix months endedNine months endedTwelve months ended
12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/206/30/216/30/209/30/219/30/2012/31/2112/31/20
Premiums
   Agency renewal written premiums$852 $898 $759 $727 $794 $842 $1,750 $1,636 $2,363 $3,122 
   Agency new business written premiums146 145 113 114 134 154 291 288 402 515 
   Other written premiums(21)(24)(32)(27)(20)(24)(45)(44)(71)(103)
   Net written premiums $977 $1,019 $840 $814 $908 $972 $1,996 $1,880 $2,694 $3,534 
   Unearned premium change(66)(133)38 51 (38)(109)(199)(147)(96)(58)
   Earned premiums$911 $886 $878 $865 $870 $863 $1,797 $1,733 $2,598 $3,476 
Year over year change %
   Agency renewal written premiums7 %%%%%%7 %%%%
   Agency new business written premiums9 (6)(12)(8)(2)28 1 12 
   Other written premiums(5)— (10)(29)20 (4)(2)(3)(5)
   Net written premiums 8 — 6 
Paid losses and loss expenses
   Losses paid$391 $330 $408 $378 $367 $426 $720 $795 $1,173 $1,581 
   Loss expenses paid78 96 98 103 86 103 174 189 291 388 
   Loss and loss expenses paid$469 $426 $506 $481 $453 $529 $894 $984 $1,464 $1,969 
Incurred losses and loss expenses
   Loss and loss expense incurred$480 $503 $512 $620 $596 $608 $983 $1,204 $1,824 $2,336 
   Loss and loss expenses paid as a % of incurred97.7 %84.7 %98.8 %77.6 %76.0 %87.0 %90.9 %81.7 %80.3 %84.3 %
Statutory combined ratio
   Loss ratio43.9 %44.3 %43.6 %59.1 %56.7 %57.5 %44.1 %57.0 %57.8 %54.2 %
   Loss adjustment expense ratio8.8 12.4 14.8 12.5 11.8 12.9 10.6 12.4 12.4 13.0 
   Net underwriting expense ratio29.9 26.2 32.0 32.0 28.6 28.9 28.0 28.8 29.7 30.3 
   Statutory combined ratio82.6 %82.9 %90.4 %103.6 %97.1 %99.3 %82.7 %98.2 %99.9 %97.5 %
   Contribution from catastrophe losses3.2 4.2 3.1 14.8 14.0 9.8 3.7 11.9 12.9 10.4 
   Statutory combined ratio excl. catastrophe losses79.4 %78.7 %87.3 %88.8 %83.1 %89.5 %79.0 %86.3 %87.0 %87.1 %
GAAP combined ratio
   GAAP combined ratio84.2 %85.4 %89.2 %102.4 %99.1 %102.5 %84.8 %100.8 %101.3 %98.3 %
   Contribution from catastrophe losses3.2 4.2 3.1 14.8 14.0 9.8 3.7 11.9 12.9 10.4 
   GAAP combined ratio excl. catastrophe losses81.0 %81.2 %86.1 %87.6 %85.1 %92.7 %81.1 %88.9 %88.4 %87.9 %
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed
 independently.
*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 Second-Quarter 2021 Supplemental Financial Data
14


Quarterly Property Casualty Data - Personal Lines
(Dollars in millions)Three months endedSix months endedNine months endedTwelve months ended
12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/206/30/216/30/209/30/219/30/2012/31/2112/31/20
Premiums
   Agency renewal written premiums$397 $302 $317 $366 $387 $294 $699 $681 $1,047 $1,364 
   Agency new business written premiums53 46 45 51 44 34 99 78 129 174 
   Other written premiums(11)(10)(8)(10)(8)(9)(21)(17)(27)(35)
   Net written premiums $439 $338 $354 $407 $423 $319 $777 $742 $1,149 $1,503 
   Unearned premium change(57)38 19 (40)(59)40 (19)(19)(59)(40)
   Earned premiums$382 $376 $373 $367 $364 $359 $758 $723 $1,090 $1,463 
Year over year change %
   Agency renewal written premiums3 %%%%%%3 %%%%
   Agency new business written premiums20 35 25 28 (6)(3)27 (5)10 
   Other written premiums(38)(11)11 (25)20 (13)(24)(4)— 
   Net written premiums 4 5 
Paid losses and loss expenses
   Losses paid$198 $162 $200 $200 $203 $173 $360 $376 $577 $778 
   Loss expenses paid29 32 36 38 30 40 60 69 106 143 
   Loss and loss expenses paid$227 $194 $236 $238 $233 $213 $420 $445 $683 $921 
Incurred losses and loss expenses
   Loss and loss expense incurred$241 $273 $195 $265 $286 $231 $514 $517 $782 $977 
   Loss and loss expenses paid as a % of incurred94.2 %71.1 %121.0 %89.8 %81.5 %92.2 %81.7 %86.1 %87.3 %94.3 %
Statutory combined ratio
   Loss ratio54.1 %65.9 %42.8 %63.1 %67.5 %57.2 %60.0 %62.4 %62.6 %57.6 %
   Loss adjustment expense ratio8.9 6.7 9.5 8.9 11.4 6.9 7.8 9.1 9.1 9.2 
   Net underwriting expense ratio27.2 30.7 30.6 26.9 29.4 32.1 28.7 30.6 29.3 29.6 
   Statutory combined ratio90.2 %103.3 %82.9 %98.9 %108.3 %96.2 %96.5 %102.1 %101.0 %96.4 %
   Contribution from catastrophe losses10.6 19.8 3.4 22.5 25.1 10.7 15.2 17.9 19.5 15.4 
   Statutory combined ratio excl. catastrophe losses79.6 %83.5 %79.5 %76.4 %83.2 %85.5 %81.3 %84.2 %81.5 %81.0 %
GAAP combined ratio
   GAAP combined ratio92.7 %101.1 %81.3 %100.7 %112.3 %94.3 %96.8 %103.4 %102.5 %97.1 %
   Contribution from catastrophe losses10.6 19.8 3.4 22.5 25.1 10.7 15.2 17.9 19.5 15.4 
   GAAP combined ratio excl. catastrophe losses82.1 %81.3 %77.9 %78.2 %87.2 %83.6 %81.6 %85.5 %83.0 %81.7 %
*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 Second-Quarter 2021 Supplemental Financial Data
15


Quarterly Property Casualty Data - Excess & Surplus Lines
(Dollars in millions)Three months endedSix months endedNine months endedTwelve months ended
12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/206/30/216/30/209/30/219/30/2012/31/2112/31/20
Premiums
   Agency renewal written premiums$84 $76 $69 $60 $63 $62 $160 $125 $185 $254 
   Agency new business written premiums36 29 27 24 32 27 65 59 83 110 
   Other written premiums(5)(6)(4)(4)(4)(4)(11)(8)(12)(16)
   Net written premiums $115 $99 $92 $80 $91 $85 $214 $176 $256 $348 
   Unearned premium change(20)(10)(5)(13)(7)(30)(20)(18)(23)
   Earned premiums$95 $89 $87 $82 $78 $78 $184 $156 $238 $325 
Year over year change %
   Agency renewal written premiums33 %23 %23 %20 %17 %27 %28 %21 %21 %22 %
   Agency new business written premiums13 (4)(14)14 10 — 
   Other written premiums(25)(50)— — — — (38)— — — 
   Net written premiums 26 16 15 17 20 22 18 15 15 
Paid losses and loss expenses
   Losses paid$19 $21 $22 $14 $14 $23 $40 $37 $51 $73 
   Loss expenses paid8 11 10 10 19 19 29 39 
   Loss and loss expenses paid$27 $32 $32 $24 $23 $32 $59 $56 $80 $112 
Incurred losses and loss expenses
   Loss and loss expense incurred$58 $59 $49 $48 $57 $45 $117 $102 $150 $199 
   Loss and loss expenses paid as a % of incurred46.6 %54.2 %65.3 %50.0 %40.4 %71.1 %50.4 %54.9 %53.3 %56.3 %
Statutory combined ratio
   Loss ratio45.0 %43.1 %39.6 %39.8 %56.4 %35.4 %44.1 %45.9 %43.8 %42.7 %
   Loss adjustment expense ratio16.0 23.6 17.0 18.5 17.2 22.0 19.6 19.5 19.2 18.6 
   Net underwriting expense ratio31.1 26.4 28.3 29.6 26.6 28.8 29.0 27.7 28.3 28.3 
   Statutory combined ratio92.1 %93.1 %84.9 %87.9 %100.2 %86.2 %92.7 %93.1 %91.3 %89.6 %
   Contribution from catastrophe losses0.5 1.0 0.5 1.2 3.4 1.0 0.7 2.2 1.8 1.5 
   Statutory combined ratio excl. catastrophe losses91.6 %92.1 %84.4 %86.7 %96.8 %85.2 %92.0 %90.9 %89.5 %88.1 %
GAAP combined ratio
   GAAP combined ratio89.5 %92.0 %83.2 %86.7 %102.0 %89.1 %90.7 %95.5 %92.5 %90.0 %
   Contribution from catastrophe losses0.5 1.0 0.5 1.2 3.4 1.0 0.7 2.2 1.8 1.5 
   GAAP combined ratio excl. catastrophe losses89.0 %91.0 %82.7 %85.5 %98.6 %88.1 %90.0 %93.3 %90.7 %88.5 %
*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 Second-Quarter 2021 Supplemental Financial Data
16


Consolidated Cincinnati Insurance Companies
Statutory Statements of Income
For the Three Months Ended June 30,For the Six Months Ended June 30,
(Dollars in millions)20212020Change% Change20212020Change% Change
Underwriting income
Net premiums written$1,667 $1,506 $161 11 $3,319 $2,987 $332 11 
Unearned premium change185 137 48 35 394 256 138 54 
Earned premiums$1,482 $1,369 $113 $2,925 $2,731 $194 
Losses incurred$697 $826 $(129)(16)$1,447 $1,590 $(143)(9)
Defense and cost containment expenses incurred54 83 (29)(35)134 164 (30)(18)
Adjusting and other expenses incurred77 76 156 150 
Other underwriting expenses incurred484 430 54 13 923 860 63 
Workers compensation dividend incurred2 — — 4 (1)(20)
     Total underwriting deductions$1,314 $1,417 $(103)(7)$2,664 $2,769 $(105)(4)
Net underwriting profit (loss)$168 $(48)$216 nm$261 $(38)$299 nm
Investment income
Gross investment income earned$116 $106 $10 $225 $211 $14 
Net investment income earned113 105 220 208 12 
Net realized capital gains and losses, net10 25 7 (38)45 nm
     Net investment gains (net of tax)$123 $113 $10 $227 $170 $57 34 
     Other income $1 $$— — $3 $$— — 
Net income before federal income taxes$292 $65 $227 349 $491 $134 $357 266 
Federal and foreign income taxes incurred61 12 49 408 91 17 74 435 
     Net income (statutory)$231 $53 $178 336 $400 $117 $283 242 
Policyholders' surplus - statutory$6,464 $5,155 $1,309 25 $6,464 $5,155 $1,309 25 
Fixed maturities at amortized cost - statutory$7,881 $7,418 $463 $7,881 $7,418 $463 
*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 Second-Quarter 2021 Supplemental Financial Data
17


The Cincinnati Life Insurance Company
Statutory Statements of Income
For the Three Months Ended June 30,For the Six Months Ended June 30,
(Dollars in millions)20212020Change% Change20212020Change% Change
Net premiums written$85 $85 $— — $172 $162 $10 
Net investment income45 40 13 88 83 
Amortization of interest maintenance reserve1 — nm1 — nm
Commissions and expense allowances on reinsurance ceded1 — — 2 — — 
Income from fees associated with separate accounts1 — — 1 — — 
Total revenues$133 $127 $$264 $248 $16 
Death benefits and matured endowments$36 $37 $(1)(3)$85 $68 $17 25 
Annuity benefits17 13 31 31 35 (4)(11)
Disability benefits and benefits under accident and health contracts — — — 1 — — 
Surrender benefits and group conversions5 — — 13 11 18 
Interest and adjustments on deposit-type contract funds2 — — 3 (1)(25)
Increase in aggregate reserves for life and accident and health contracts32 37 (5)(14)55 58 (3)(5)
Total benefit expenses$92 $94 $(2)(2)$188 $177 $11 
Commissions$12 $12 $— — $24 $25 $(1)(4)
General insurance expenses and taxes14 12 17 26 25 
Increase in loading on deferred and uncollected premiums1 (3)nm4 (1)(20)
Net transfers from separate accounts(3)(4)25 (3)(4)25 
Total underwriting expenses$24 $17 $41 $51 $51 $— — 
Federal and foreign income taxes incurred5 — — 7 17 
Net gain from operations before capital gains and losses$12 $11 $$18 $14 $29 
Gains and losses net of capital gains tax, net1 (1)50 1 (31)32 nm
Net income (loss) (statutory)$13 $13 $— — $19 $(17)$36 nm
Policyholders' surplus - statutory$253 $208 45 22 $253 $208 $45 22 
Fixed maturities at amortized cost - statutory$3,676 $3,456 $220 $3,676 $3,456 $220 
*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 Second-Quarter 2021 Supplemental Financial Data
18


Quarterly Data - Other
(Dollars in millions)Three months endedSix months endedNine months endedTwelve months ended
12/31/219/30/216/30/213/31/2112/31/209/30/206/30/203/31/206/30/216/30/209/30/219/30/2012/31/2112/31/20
Cincinnati Re:
Written premiums$136 $196 $59 $54 $84 $105 $332 $189 $242 $302 
   Year over year change %- written premium62 %87 %64 %52 %15 %25 %76 %20 %26 %32 %
Earned premiums$94 $92 $69 $71 $57 $62 $186 $119 $190 $259 
Current accident year before catastrophe losses48.5 %42.1 %57.2 %56.1 %79.6 %47.6 %45.4 %63.0 %60.4 %59.6 %
Current accident year catastrophe losses(1.7)35.4 15.4 22.3 — — 16.7 — 8.4 10.2 
Prior accident years before catastrophe losses6.4 3.0 1.2 5.5 (0.6)3.1 4.7 1.3 2.8 2.4 
Prior accident years catastrophe losses(0.1)— — (8.6)(0.1)6.3 (0.1)3.2 (1.2)(0.9)
   Total loss and loss expense ratio53.1 %80.5 %73.8 %75.3 %78.9 %57.0 %66.7 %67.5 %70.4 %71.3 %
Cincinnati Global:
Written premiums$47 $41 $49 $38 $53 $37 $88 $90 $129 $177 
   Year over year change %- written premium(11)%11 %32 %— %20 %76 %(2)%38 %25 %26 %
Earned premiums$32 $32 $42 $65 $34 $27 $64 $61 $126 $168 
Current accident year before catastrophe losses54.4 %30.9 %23.7 %62.9 %49.6 %63.7 %42.9 %55.6 %59.4 %50.4 %
Current accident year catastrophe losses27.5 55.8 58.8 68.7 42.4 — 41.3 24.1 46.9 49.9 
Prior accident years before catastrophe losses(23.4)(12.0)(11.9)(0.1)(27.9)(19.5)(17.8)(24.2)(11.8)(11.9)
Prior accident years catastrophe losses(54.0)(31.0)(19.5)(0.1)1.0 (3.2)(42.7)(0.8)(0.4)(5.2)
   Total loss and loss expense ratio4.5 %43.7 %51.1 %131.4 %65.1 %41.0 %23.7 %54.7 %94.1 %83.2 %
Noninsurance operations:
Interest and fees on loans and leases$2 $$$$$$3 $$$
Other revenue1 — 2 
Interest expense13 13 14 13 14 13 26 27 40 54 
Operating expenses5 9 10 15 20 
  Total noninsurance operations loss$(15)$(15)$(17)$(15)$(16)$(16)$(30)$(32)$(47)$(64)
*Dollar amounts shown are in conformity with GAAP and 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.
*Noninsurance operations include the noninvestment operations of the parent company and a noninsurance subsidiary, CFC Investment Company.
CINF Second-Quarter 2021 Supplemental Financial Data
19
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