|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |
| Ohio                                                          |   | 31-0746871 |
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. Employer IdentificationNo.) |
|                                                          |   |   |
| 6200 S. Gilmore Road, Fairfield, Ohio                         |   | 45014-5141 |
| (Address of principal executive offices)                      |   | (Zip code) |

----

|                                                                                                     |
|-----------------------------------------------------------------------------------------------------|
|                                                                                                     |  |
| Part I – Financial Information                                                                | 3 |
|                                                                                                |   |
| Item 1. Financial Statements (unaudited)                                                       | 3 |
|                                                                                                |   |
| Condensed Consolidated Balance Sheets                                                               | 3 |
|                                                                                                |   |
| Condensed Consolidated Statements of Income                                                         | 4 |
|                                                                                                |   |
| Condensed Consolidated Statements of Comprehensive Income                                           | 5 |
|                                                                                                |   |
| Condensed Consolidated Statements of Shareholders’ Equity                                     | 6 |
|                                                                                                |   |
| Condensed Consolidated Statements of Cash Flows                                                     | 7 |
|                                                                                                |   |
| Notes to Condensed Consolidated Financial Statements (unaudited)                                    | 8 |
|                                                                                                |   |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 29 |
|                                                                                                |   |
| Safe Harbor Statement                                                                               | 29 |
|                                                                                                |   |
| Corporate Financial Highlights                                                                      | 31 |
|                                                                                                |   |
| Financial Results                                                                                   | 41 |
|                                                                                                |   |
| Liquidity and Capital Resources                                                                     | 56 |
|                                                                                                |   |
| Other Matters                                                                                       | 60 |
|                                                                                                |   |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk                             | 60 |
|                                                                                                |   |
| Item 4. Controls and Procedures                                                                     | 67 |
|                                                                                                |   |
| Part II – Other Information                                                                   | 68 |
|                                                                                                |   |
| Item 1. Legal Proceedings                                                                           | 68 |
|                                                                                                |   |
| Item 1A. Risk Factors                                                                               | 68 |
|                                                                                                |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                 | 68 |
|                                                                                                |   |
| Item 6. Exhibits                                                                                    | 69 |

----

|                                                                                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                      |  |  |  |  |  |  |  |  |
| (Dollars in millions, except per share data)                                                                                                |   | March 31, |   | December 31, |
|                                                                                                                                                                 |   | 2018 |   | 2017 |
| Assets                                                                                                                                                               |   |   |  |   |   |  |
| Investments                                                                                                                                                          |   |   |  |   |   |  |
| Fixed maturities, at fair value (amortized cost: 2018—$10,364; 2017—$10,314)                                                                             |   | $ | 10,528 |  |   | $ | 10,699 |  |
| Equity securities, at fair value (cost: 2017—$3,094)                                                                                                           |   | 6,086 |  |   | 6,249 |  |
| Other invested assets                                                                                                                                                |   | 107 |  |   | 103 |  |
| Total investments                                                                                                                                                    |   | 16,721 |  |   | 17,051 |  |
| Cash and cash equivalents                                                                                                                                            |   | 604 |  |   | 657 |  |
| Investment income receivable                                                                                                                                         |   | 124 |  |   | 134 |  |
| Finance receivable                                                                                                                                                   |   | 61 |  |   | 61 |  |
| Premiums receivable                                                                                                                                                  |   | 1,626 |  |   | 1,589 |  |
| Reinsurance recoverable                                                                                                                                              |   | 423 |  |   | 432 |  |
| Prepaid reinsurance premiums                                                                                                                                         |   | 39 |  |   | 42 |  |
| Deferred policy acquisition costs                                                                                                                                    |   | 691 |  |   | 670 |  |
| Land, building and equipment, net, for company use (accumulated depreciation:     2018—$259; 2017—$253)                                   |   | 186 |  |   | 185 |  |
| Other assets                                                                                                                                                         |   | 192 |  |   | 216 |  |
| Separate accounts                                                                                                                                                    |   | 803 |  |   | 806 |  |
| Total assets                                                                                                                                                         |   | $ | 21,470 |  |   | $ | 21,843 |  |
|                                                                                                                                                                 |   |   |   |   |
| Liabilities                                                                                                                                                          |   |   |  |   |   |  |
| Insurance reserves                                                                                                                                                   |   |   |  |   |   |  |
| Loss and loss expense reserves                                                                                                                                       |   | $ | 5,345 |  |   | $ | 5,273 |  |
| Life policy and investment contract reserves                                                                                                                         |   | 2,740 |  |   | 2,729 |  |
| Unearned premiums                                                                                                                                                    |   | 2,459 |  |   | 2,404 |  |
| Other liabilities                                                                                                                                                    |   | 672 |  |   | 792 |  |
| Deferred income tax                                                                                                                                                  |   | 652 |  |   | 745 |  |
| Note payable                                                                                                                                                         |   | 24 |  |   | 24 |  |
| Long-term debt and capital lease obligations                                                                                                                         |   | 829 |  |   | 827 |  |
| Separate accounts                                                                                                                                                    |   | 803 |  |   | 806 |  |
| Total liabilities                                                                                                                                                    |   | 13,524 |  |   | 13,600 |  |
|                                                                                                                                                                 |   |   |   |   |
| Commitments and contingent liabilities (Note 12)                                                                                                                     |   |  |  |   |  |  |
|                                                                                                                                                                 |   |   |   |   |
| Shareholders' Equity                                                                                                                                                 |   |   |  |   |   |  |
| Common stock, par value—$2 per share; (authorized: 2018 and 2017—500 million    shares; issued: 2018 and 2017—198.3 million shares) |   | 397 |  |   | 397 |  |
| Paid-in capital                                                                                                                                                      |   | 1,258 |  |   | 1,265 |  |
| Retained earnings                                                                                                                                                    |   | 7,565 |  |   | 5,180 |  |
| Accumulated other comprehensive income                                                                                                                               |   | 115 |  |   | 2,788 |  |
| Treasury stock at cost (2018—34.2 million shares and 2017—34.4 million shares)                                                                           |   | (1,389 | ) |   | (1,387 | ) |
| Total shareholders' equity                                                                                                                                           |   | 7,946 |  |   | 8,243 |  |
| Total liabilities and shareholders' equity                                                                                                                           |   | $ | 21,470 |  |   | $ | 21,843 |  |
|                                                                                                                                                                 |   |   |   |   |

----

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |
| (Dollars in millions, except per share data) | Three months ended March 31, |
|                                                                  | 2018 |   | 2017 |
| Revenues                                                              |   |  |   |   |  |
| Earned premiums                                                       | $ | 1,260 |  |   | $ | 1,208 |  |
| Investment income, net of expenses                                    | 150 |  |   | 149 |  |
| Investment gains and losses, net                                      | (191 | ) |   | 160 |  |
| Fee revenues                                                          | 4 |  |   | 5 |  |
| Other revenues                                                        | 1 |  |   | 1 |  |
| Total revenues                                                        | 1,224 |  |   | 1,523 |  |
| Benefits and Expenses                                                 |   |  |   |   |  |
| Insurance losses and contract holders' benefits                       | 854 |  |   | 853 |  |
| Underwriting, acquisition and insurance expenses                      | 403 |  |   | 377 |  |
| Interest expense                                                      | 13 |  |   | 13 |  |
| Other operating expenses                                              | 4 |  |   | 4 |  |
|  Total benefits and expenses                                     | 1,274 |  |   | 1,247 |  |
| Income (Loss) Before Income Taxes                                     | (50 | ) |   | 276 |  |
| Provision (Benefit) for Income Taxes                                  |   |  |   |   |  |
| Current                                                               | 28 |  |   | 40 |  |
| Deferred                                                              | (47 | ) |   | 35 |  |
| Total provision (benefit) for income taxes                            | (19 | ) |   | 75 |  |
| Net Income (Loss)                                                     | $ | (31 | ) |   | $ | 201 |  |
| Per Common Share                                                      |   |  |   |   |  |
| Net income (loss)—basic                                         | $ | (0.19 | ) |   | $ | 1.22 |  |
| Net income (loss)—diluted                                       | (0.19 | ) |   | 1.21 |  |
|                                                                  |   |   |   |

----

|                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------|
|                                                                                                                  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                                                       | Three months ended March 31, |
|                                                                                                             | 2018 |   | 2017 |
| Net Income (Loss)                                                                                                | $ | (31 | ) |   | $ | 201 |  |
| Other Comprehensive Income (Loss)                                                                                |   |  |   |   |  |
| Change in unrealized gains on investments, net of tax (benefit) of ($46) and $46, respectively                   | (175 | ) |   | 85 |  |
| Amortization of pension actuarial loss and prior service cost, net of tax of $0 and $0, respectively             | — |  |   | 1 |  |
| Change in life deferred acquisition costs, life policy reserves and other, net of tax of $1 and $1, respectively | 5 |  |   | 1 |  |
| Other comprehensive income (loss)                                                                                | (170 | ) |   | 87 |  |
| Comprehensive Income (Loss)                                                                                      | $ | (201 | ) |   | $ | 288 |  |
|                                                                                                             |   |   |   |

----

|                                                                                       |
|---------------------------------------------------------------------------------------|
|                                                                                       |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                                 |   | Three months ended March 31, |
|                                                                                  |   | 2018 |   | 2017 |
| Common Stock                                                                          |   |   |   |   |
|    Beginning of year                                                   |   | $ | 397 |  |   | $ | 397 |  |
|    Share-based awards                                                  |   | — |  |   | — |  |
|    End of period                                                       |   | 397 |  |   | 397 |  |
|                                                                                  |   |   |   |   |
| Paid-In Capital                                                                       |   |   |   |   |
|    Beginning of year                                                   |   | 1,265 |  |   | 1,252 |  |
|    Share-based awards                                                  |   | (17 | ) |   | (18 | ) |
|    Share-based compensation                                            |   | 9 |  |   | 8 |  |
|    Other                                                               |   | 1 |  |   | 1 |  |
|    End of period                                                       |   | 1,258 |  |   | 1,243 |  |
|                                                                                  |   |   |   |   |
| Retained Earnings                                                                     |   |   |   |   |
|    Beginning of year                                                   |   | 5,180 |  |   | 5,037 |  |
| Cumulative effect of change in accounting for equity securities as of January 1, 2018 |   | 2,503 |  |   | — |  |
| Adjusted beginning of year                                                            |   | 7,683 |  |   | 5,037 |  |
|    Net income (loss)                                                   |   | (31 | ) |   | 201 |  |
|    Dividends declared                                                  |   | (87 | ) |   | (82 | ) |
|    End of period                                                       |   | 7,565 |  |   | 5,156 |  |
|                                                                                  |   |   |   |   |
| Accumulated Other Comprehensive Income                                                |   |   |   |   |
|    Beginning of year                                                   |   | 2,788 |  |   | 1,693 |  |
| Cumulative effect of change in accounting for equity securities as of January 1, 2018 |   | (2,503 | ) |   | — |  |
| Adjusted beginning of year                                                            |   | 285 |  |   | 1,693 |  |
|    Other comprehensive income (loss)                                   |   | (170 | ) |   | 87 |  |
|    End of period                                                       |   | 115 |  |   | 1,780 |  |
|                                                                                  |   |   |   |   |
| Treasury Stock                                                                        |   |   |   |   |
|    Beginning of year                                                   |   | (1,387 | ) |   | (1,319 | ) |
|    Share-based awards                                                  |   | 14 |  |   | 17 |  |
|    Shares acquired - share repurchase authorization                    |   | (15 | ) |   | (15 | ) |
|    Shares acquired - share-based compensation plans                    |   | (2 | ) |   | (4 | ) |
|    Other                                                               |   | 1 |  |   | 1 |  |
|    End of period                                                       |   | (1,389 | ) |   | (1,320 | ) |
|                                                                                  |   |   |   |   |
|       Total Shareholders' Equity                        |   | $ | 7,946 |  |   | $ | 7,256 |  |
|                                                                                  |   |   |   |   |
| (In millions)                                                                         |   |   |   |   |
| Common Stock - Shares Outstanding                                                     |   |   |   |   |
|    Beginning of year                                                   |   | 163.9 |  |   | 164.4 |  |
|    Share-based awards                                                  |   | 0.4 |  |   | 0.5 |  |
|    Shares acquired - share repurchase authorization                    |   | (0.2 | ) |   | (0.2 | ) |
|    Shares acquired - share-based compensation plans                    |   | — |  |   | (0.1 | ) |
|    Other                                                               |   | — |  |   | — |  |
|    End of period                                                       |   | 164.1 |  |   | 164.6 |  |
|                                                                                  |   |   |   |   |

----

|                                                                                          |
|------------------------------------------------------------------------------------------|
|                                                                                          |  |  |  |  |  |  |  |  |
|  (Dollars in millions)                                                         |   | Three months ended March 31, |
|                                                                                     |   | 2018 |   | 2017 |
| Cash Flows From Operating Activities                                                     |   |   |  |   |   |  |
| Net income (loss)                                                                        |   | $ | (31 | ) |   | $ | 201 |  |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |   |   |  |   |   |  |
| Depreciation and amortization                                                            |   | 18 |  |   | 14 |  |
| Investment gains and losses, net                                                         |   | 191 |  |   | (160 | ) |
| Share-based compensation                                                                 |   | 9 |  |   | 8 |  |
| Interest credited to contract holders'                                                   |   | 11 |  |   | 13 |  |
| Deferred income tax expense                                                              |   | (47 | ) |   | 35 |  |
| Changes in:                                                                              |   |   |  |   |   |  |
| Investment income receivable                                                             |   | 10 |  |   | 11 |  |
| Premiums and reinsurance receivable                                                      |   | (26 | ) |   | (44 | ) |
| Deferred policy acquisition costs                                                        |   | (10 | ) |   | (25 | ) |
| Other assets                                                                             |   | (8 | ) |   | (5 | ) |
| Loss and loss expense reserves                                                           |   | 72 |  |   | 92 |  |
| Life policy and investment contract reserves                                             |   | 21 |  |   | 25 |  |
| Unearned premiums                                                                        |   | 55 |  |   | 70 |  |
| Other liabilities                                                                        |   | (137 | ) |   | (139 | ) |
| Current income tax receivable/payable                                                    |   | 26 |  |   | 40 |  |
| Net cash provided by operating activities                                                |   | 154 |  |   | 136 |  |
| Cash Flows From Investing Activities                                                     |   |   |  |   |   |  |
| Sale of fixed maturities                                                                 |   | 5 |  |   | 12 |  |
| Call or maturity of fixed maturities                                                     |   | 393 |  |   | 249 |  |
| Sale of equity securities                                                                |   | 104 |  |   | 216 |  |
| Purchase of fixed maturities                                                             |   | (438 | ) |   | (403 | ) |
| Purchase of equity securities                                                            |   | (110 | ) |   | (313 | ) |
| Investment in finance receivables                                                        |   | (6 | ) |   | (5 | ) |
| Collection of finance receivables                                                        |   | 6 |  |   | 6 |  |
| Investment in buildings and equipment                                                    |   | (3 | ) |   | (2 | ) |
| Change in other invested assets, net                                                     |   | (5 | ) |   | (6 | ) |
| Net cash used in investing activities                                                    |   | (54 | ) |   | (246 | ) |
| Cash Flows From Financing Activities                                                     |   |   |  |   |   |  |
| Payment of cash dividends to shareholders                                                |   | (80 | ) |   | (77 | ) |
| Shares acquired - share repurchase authorization                                         |   | (15 | ) |   | (15 | ) |
| Payments of note payable                                                                 |   | — |  |   | (3 | ) |
| Proceeds from stock options exercised                                                    |   | 4 |  |   | 6 |  |
| Contract holders' funds deposited                                                        |   | 21 |  |   | 23 |  |
| Contract holders' funds withdrawn                                                        |   | (46 | ) |   | (43 | ) |
| Other                                                                                    |   | (37 | ) |   | (15 | ) |
| Net cash used in financing activities                                                    |   | (153 | ) |   | (124 | ) |
| Net change in cash and cash equivalents                                                  |   | (53 | ) |   | (234 | ) |
| Cash and cash equivalents at beginning of year                                           |   | 657 |  |   | 777 |  |
| Cash and cash equivalents at end of period                                               |   | $ | 604 |  |   | $ | 543 |  |
| Supplemental Disclosures of Cash Flow Information:                                       |   |   |  |   |   |  |
| Interest paid                                                                            |   | $ | — |  |   | $ | — |  |
| Income taxes paid                                                                        |   | — |  |   | — |  |
| Noncash Activities                                                                       |   |   |  |   |   |  |
| Conversion of securities                                                                 |   | $ | 3 |  |   | $ | 4 |  |
| Equipment acquired under capital lease obligations                                       |   | 5 |  |   | 3 |  |
| Cashless exercise of stock options                                                       |   | 2 |  |   | 4 |  |
| Other assets and other liabilities                                                       |   | 30 |  |   | 73 |  |
|                                                                                     |   |   |   |   |

----

----

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                        |   | Cost oramortizedcost |   | Gross unrealized |   | Fair value |
| At March 31, 2018                                 |   |   | gains |   | losses |   |
| Fixed maturity securities:                        |   |   |  |   |   |  |   |   |  |   |   |  |
| Corporate                                         |   | $ | 5,452 |  |   | $ | 155 |  |   | $ | 35 |  |   | $ | 5,572 |  |
| States, municipalities and political subdivisions |   | 4,304 |  |   | 85 |  |   | 35 |  |   | 4,354 |  |
| Commercial mortgage-backed                        |   | 285 |  |   | 3 |  |   | 2 |  |   | 286 |  |
| Government-sponsored enterprises                  |   | 277 |  |   | — |  |   | 6 |  |   | 271 |  |
| United States government                          |   | 36 |  |   | — |  |   | 1 |  |   | 35 |  |
| Foreign government                                |   | 10 |  |   | — |  |   | — |  |   | 10 |  |
| Total                                             |   | 10,364 |  |   | 243 |  |   | 79 |  |   | 10,528 |  |
| At December 31, 2017                         |   |   |  |   |   |  |   |   |  |   |   |  |
| Fixed maturity securities:                        |   |   |  |   |   |  |   |   |  |   |   |  |
| Corporate                                         |   | $ | 5,420 |  |   | $ | 246 |  |   | $ | 13 |  |   | $ | 5,653 |  |
| States, municipalities and political subdivisions |   | 4,316 |  |   | 155 |  |   | 6 |  |   | 4,465 |  |
| Commercial mortgage-backed                        |   | 280 |  |   | 7 |  |   | 1 |  |   | 286 |  |
| Government-sponsored enterprises                  |   | 257 |  |   | 1 |  |   | 4 |  |   | 254 |  |
| United States government                          |   | 31 |  |   | — |  |   | — |  |   | 31 |  |
| Foreign government                                |   | 10 |  |   | — |  |   | — |  |   | 10 |  |
| Subtotal                                          |   | 10,314 |  |   | 409 |  |   | 24 |  |   | 10,699 |  |
| Equity securities:                                |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                   |   | 2,918 |  |   | 3,135 |  |   | 14 |  |   | 6,039 |  |
| Nonredeemable preferred equities                  |   | 176 |  |   | 34 |  |   | — |  |   | 210 |  |
| Subtotal                                          |   | 3,094 |  |   | 3,169 |  |   | 14 |  |   | 6,249 |  |
| Total                                             |   | $ | 13,408 |  |   | $ | 3,578 |  |   | $ | 38 |  |   | $ | 16,948 |  |
|                                              |   |   |   |   |   |   |   |   |

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                        |   | Less than 12 months |   | 12 months or more |   | Total |
| At March 31, 2018                                 |   | Fairvalue |   | Unrealizedlosses |   | Fairvalue |   | Unrealizedlosses |   | Fairvalue |   | Unrealizedlosses |
| Fixed maturity securities:                        |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Corporate                                         |   | $ | 1,002 |  |   | $ | 20 |  |   | $ | 253 |  |   | $ | 15 |  |   | $ | 1,255 |  |   | $ | 35 |  |
| States, municipalities and political subdivisions |   | 1,052 |  |   | 21 |  |   | 256 |  |   | 14 |  |   | 1,308 |  |   | 35 |  |
| Commercial mortgage-backed securities             |   | 81 |  |   | 1 |  |   | 35 |  |   | 1 |  |   | 116 |  |   | 2 |  |
| Government-sponsored enterprises                  |   | 131 |  |   | 2 |  |   | 123 |  |   | 4 |  |   | 254 |  |   | 6 |  |
| Foreign government                                |   | 10 |  |   | — |  |   | — |  |   | — |  |   | 10 |  |   | — |  |
| United States government                          |   | 24 |  |   | 1 |  |   | 11 |  |   | — |  |   | 35 |  |   | 1 |  |
| Total                                             |   | $ | 2,300 |  |   | $ | 45 |  |   | $ | 678 |  |   | $ | 34 |  |   | $ | 2,978 |  |   | $ | 79 |  |
| At December 31, 2017                         |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fixed maturity securities:                        |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Corporate                                         |   | $ | 330 |  |   | $ | 4 |  |   | $ | 252 |  |   | $ | 9 |  |   | $ | 582 |  |   | $ | 13 |  |
| States, municipalities and political subdivisions |   | 88 |  |   | 1 |  |   | 264 |  |   | 5 |  |   | 352 |  |   | 6 |  |
| Commercial mortgage-backed                        |   | 33 |  |   | — |  |   | 36 |  |   | 1 |  |   | 69 |  |   | 1 |  |
| Government-sponsored enterprises                  |   | 96 |  |   | 1 |  |   | 124 |  |   | 3 |  |   | 220 |  |   | 4 |  |
| Foreign government                                |   | 10 |  |   | — |  |   | — |  |   | — |  |   | 10 |  |   | — |  |
| United States government                          |   | 23 |  |   | — |  |   | 6 |  |   | — |  |   | 29 |  |   | — |  |
| Subtotal                                          |   | 580 |  |   | 6 |  |   | 682 |  |   | 18 |  |   | 1,262 |  |   | 24 |  |
| Equity securities:                                |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                   |   | 229 |  |   | 14 |  |   | — |  |   | — |  |   | 229 |  |   | 14 |  |
| Subtotal                                          |   | 229 |  |   | 14 |  |   | — |  |   | — |  |   | 229 |  |   | 14 |  |
| Total                                             |   | $ | 809 |  |   | $ | 20 |  |   | $ | 682 |  |   | $ | 18 |  |   | $ | 1,491 |  |   | $ | 38 |  |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                  |   | Amortizedcost |   | Fairvalue |   | % of fairvalue |
| At March 31, 2018                      |   |   |   |
| Maturity dates:                        |   |   |  |   |   |  |   |   |  |
| Due in one year or less                |   | $ | 449 |  |   | $ | 457 |  |   | 4.4 | % |
| Due after one year through five years  |   | 2,714 |  |   | 2,768 |  |   | 26.3 |  |
| Due after five years through ten years |   | 3,986 |  |   | 4,046 |  |   | 38.4 |  |
| Due after ten years                    |   | 3,215 |  |   | 3,257 |  |   | 30.9 |  |
| Total                                  |   | $ | 10,364 |  |   | $ | 10,528 |  |   | 100.0 | % |
|                                   |   |   |   |   |   |   |

----

|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |  |  |
| (Dollars in millions)                                | Three months ended March 31, |
|                                                      | 2018 |   | 2017 |
| Investment income:                                        |   |   |   |
| Interest                                                  | $ | 110 |  |   | $ | 111 |  |
| Dividends                                                 | 42 |  |   | 39 |  |
| Other                                                     | 1 |  |   | 1 |  |
| Total                                                     | 153 |  |   | 151 |  |
| Less investment expenses                                  | 3 |  |   | 2 |  |
| Total                                                     | $ | 150 |  |   | $ | 149 |  |
|                                                      |   |   |   |
| Investment gains and losses, net:                         |   |  |   |   |  |
| Equity securities:                                        |   |  |   |   |  |
| Investment gains and losses on securities sold, net       | $ | 3 |  |   | $ | — |  |
| Unrealized gains and losses on securities still held, net | (198 | ) |   | — |  |
| Gross realized gains                                      | — |  |   | 153 |  |
| Gross realized losses                                     | — |  |   | (4 | ) |
| Subtotal                                                  | (195 | ) |   | 149 |  |
| Fixed maturities:                                         |   |  |   |   |  |
| Gross realized gains                                      | 4 |  |   | 10 |  |
| Gross realized losses                                     | — |  |   | — |  |
| Subtotal                                                  | 4 |  |   | 10 |  |
|                                                      |   |   |   |
| Other                                                     | — |  |   | 1 |  |
| Total                                                     | $ | (191 | ) |   | $ | 160 |  |
|                                                      |   |   |   |

----

|                                                                                           |
|-------------------------------------------------------------------------------------------|
|                                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                                     |   | Quoted prices inactive markets foridentical assets(Level 1) |   | Significant otherobservable inputs (Level 2) |   | Significantunobservableinputs(Level 3) |   | Total |
| At March 31, 2018                                                                         |   |   |   |   |
| Fixed maturities, available for sale:                                                     |   |   |  |   |   |  |   |   |  |   |   |  |
| Corporate                                                                                 |   | $ | — |  |   | $ | 5,571 |  |   | $ | 1 |  |   | $ | 5,572 |  |
| States, municipalities and political subdivisions                                         |   | — |  |   | 4,350 |  |   | 4 |  |   | 4,354 |  |
| Commercial mortgage-backed                                                                |   | — |  |   | 286 |  |   | — |  |   | 286 |  |
| Government-sponsored enterprises                                                          |   | — |  |   | 271 |  |   | — |  |   | 271 |  |
| United States government                                                                  |   | 35 |  |   | — |  |   | — |  |   | 35 |  |
| Foreign government                                                                        |   | — |  |   | 10 |  |   | — |  |   | 10 |  |
| Subtotal                                                                                  |   | 35 |  |   | 10,488 |  |   | 5 |  |   | 10,528 |  |
| Common equities                                                                           |   | 5,893 |  |   | — |  |   | — |  |   | 5,893 |  |
| Nonredeemable preferred equities                                                          |   | — |  |   | 193 |  |   | — |  |   | 193 |  |
| Separate accounts taxable fixed maturities                                                |   | — |  |   | 793 |  |   | — |  |   | 793 |  |
| Top Hat savings plan mutual funds and common    equity (included in Other assets)         |   | 34 |  |   | — |  |   | — |  |   | 34 |  |
| Total                                                                                     |   | $ | 5,962 |  |   | $ | 11,474 |  |   | $ | 5 |  |   | $ | 17,441 |  |
|                                                                                      |   |   |   |   |   |   |   |   |
| At December 31, 2017                                                                 |   |   |   |   |   |   |   |   |
| Fixed maturities, available for sale:                                                     |   |   |  |   |   |  |   |   |  |   |   |  |
| Corporate                                                                                 |   | $ | — |  |   | $ | 5,652 |  |   | $ | 1 |  |   | $ | 5,653 |  |
| States, municipalities and political subdivisions                                         |   | — |  |   | 4,460 |  |   | 5 |  |   | 4,465 |  |
| Commercial mortgage-backed                                                                |   | — |  |   | 286 |  |   | — |  |   | 286 |  |
| Government-sponsored enterprises                                                          |   | — |  |   | 254 |  |   | — |  |   | 254 |  |
| United States government                                                                  |   | 31 |  |   | — |  |   | — |  |   | 31 |  |
| Foreign government                                                                        |   | — |  |   | 10 |  |   | — |  |   | 10 |  |
| Subtotal                                                                                  |   | 31 |  |   | 10,662 |  |   | 6 |  |   | 10,699 |  |
| Common equities, available for sale                                                       |   | 6,039 |  |   | — |  |   | — |  |   | 6,039 |  |
| Nonredeemable preferred equities, available for sale                                      |   | — |  |   | 210 |  |   | — |  |   | 210 |  |
| Separate accounts taxable fixed maturities                                                |   | — |  |   | 795 |  |   | — |  |   | 795 |  |
| Top Hat savings plan mutual funds and common  equity (included in Other assets) |   | 31 |  |   | — |  |   | — |  |   | 31 |  |
| Total                                                                                     |   | $ | 6,101 |  |   | $ | 11,667 |  |   | $ | 6 |  |   | $ | 17,774 |  |
|                                                                                      |   |   |   |   |   |   |   |   |

----

|        |
|--------|
|        |  |  |  |  |  |  |  |  |  |  |
|   |   |   |   |   |   |   |   |   |   |   |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                         | Asset fair value measurements using significant unobservable inputs |
|                                          |   | Corporatefixedmaturities |   | States,municipalitiesand politicalsubdivisionsfixed maturities |   | Total |
| Beginning balance, January 1, 2018            |   | $ | 1 |  |   | $ | 5 |  |   | $ | 6 |  |
| Total gains or losses (realized/unrealized):  |   |   |   |   |  |   |   |  |
| Included in net income (loss)                 |   | — |  |   | — |  |   | — |  |
| Included in other comprehensive income (loss) |   | — |  |   | (1 | ) |   | (1 | ) |
| Purchases                                     |   | — |  |   | — |  |   | — |  |
| Sales                                         |   | — |  |   | — |  |   | — |  |
| Transfers into Level 3                        |   | — |  |   | — |  |   | — |  |
| Transfers out of Level 3                      |   | — |  |   | — |  |   | — |  |
| Ending balance, March 31, 2018           |   | $ | 1 |  |   | $ | 4 |  |   | $ | 5 |  |
|                                          |   |   |   |   |   |   |
| Beginning balance, January 1, 2017            |   | $ | 78 |  |   | $ | — |  |   | $ | 78 |  |
| Total gains or losses (realized/unrealized):  |   |   |   |   |  |   |   |
| Included in net income                        |   | — |  |   | — |  |   | — |  |
| Included in other comprehensive income        |   | — |  |   | — |  |   | — |  |
| Purchases                                     |   | — |  |   | — |  |   | — |  |
| Sales                                         |   | — |  |   | — |  |   | — |  |
| Transfers into Level 3                        |   | — |  |   | — |  |   | — |  |
| Transfers out of Level 3                      |   | (77 | ) |   | — |  |   | (77 | ) |
| Ending balance, March 31, 2017           |   | $ | 1 |  |   | $ | — |  |   | $ | 1 |  |
|                                          |   |   |   |   |   |   |

----

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions) |   |   |   | Book value |   | Principal amount |
| Interestrate               |   | Year of issue |   |   |   | March 31, |   | December 31, |   | March 31, |   | December 31, |
|                       |   |   |   | 2018 |   | 2017 |   | 2018 |   | 2017 |
| 6.900                      | % |   | 1998 |   | Senior debentures, due 2028 |   | $ | 26 |  |   | $ | 26 |  |   | $ | 28 |  |   | $ | 28 |  |
| 6.920                      | % |   | 2005 |   | Senior debentures, due 2028 |   | 391 |  |   | 391 |  |   | 391 |  |   | 391 |  |
| 6.125                      | % |   | 2004 |   | Senior notes, due 2034 |   | 370 |  |   | 370 |  |   | 374 |  |   | 374 |  |
|                       |  |   |   |   | Total |   | $ | 787 |  |   | $ | 787 |  |   | $ | 793 |  |   | $ | 793 |  |
|                       |   |   |   |   |   |   |   |   |   |   |   |   |

|                                    |
|------------------------------------|
|                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)              |   | Quoted prices inactive markets foridentical assets(Level 1) |   | Significant other observable inputs (Level 2) |   | Significantunobservableinputs(Level 3) |   | Total |
| At March 31, 2018                  |   |   |   |   |
| Note payable                       |   | $ | — |  |   | $ | 24 |  |   | $ | — |  |   | $ | 24 |  |
| 6.900% senior debentures, due 2028 |   | — |  |   | 33 |  |   | — |  |   | 33 |  |
| 6.920% senior debentures, due 2028 |   | — |  |   | 490 |  |   | — |  |   | 490 |  |
| 6.125% senior notes, due 2034      |   | — |  |   | 464 |  |   | — |  |   | 464 |  |
| Total                              |   | $ | — |  |   | $ | 1,011 |  |   | $ | — |  |   | $ | 1,011 |  |
|                               |   |   |   |   |   |   |   |   |
| At December 31, 2017          |   |   |   |   |   |   |   |   |
| Note payable                       |   | $ | — |  |   | $ | 24 |  |   | $ | — |  |   | $ | 24 |  |
| 6.900% senior debentures, due 2028 |   | — |  |   | 34 |  |   | — |  |   | 34 |  |
| 6.920% senior debentures, due 2028 |   | — |  |   | 505 |  |   | — |  |   | 505 |  |
| 6.125% senior notes, due 2034      |   | — |  |   | 477 |  |   | — |  |   | 477 |  |
| Total                              |   | $ | — |  |   | $ | 1,040 |  |   | $ | — |  |   | $ | 1,040 |  |
|                               |   |   |   |   |   |   |   |   |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)     |   | Quoted prices inactive markets foridentical assets(Level 1) |   | Significant otherobservable inputs (Level 2) |   | Significantunobservableinputs(Level 3) |   | Total |
| At March 31, 2018         |   |   |   |   |
| Life policy loans         |   | $ | — |  |   | $ | — |  |   | $ | 40 |  |   | $ | 40 |  |
|                      |   |   |   |   |   |   |   |   |
| At December 31, 2017 |   |   |   |   |   |   |   |   |
| Life policy loans         |   | $ | — |  |   | $ | — |  |   | $ | 41 |  |   | $ | 41 |  |
|                      |   |   |   |   |   |   |   |   |

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)     |   | Quoted prices inactive markets foridentical assets(Level 1) |   | Significant otherobservable inputs (Level 2) |   | Significantunobservableinputs(Level 3) |   | Total |
| At March 31, 2018         |   |   |   |   |
| Deferred annuities        |   | $ | — |  |   | $ | — |  |   | $ | 788 |  |   | $ | 788 |  |
| Structured settlements    |   | — |  |   | 200 |  |   | — |  |   | 200 |  |
| Total                     |   | $ | — |  |   | $ | 200 |  |   | $ | 788 |  |   | $ | 988 |  |
|                      |   |   |   |   |   |   |   |   |
| At December 31, 2017 |   |   |   |   |   |   |   |   |
| Deferred annuities        |   | $ | — |  |   | $ | — |  |   | $ | 834 |  |   | $ | 834 |  |
| Structured settlements    |   | — |  |   | 210 |  |   | — |  |   | 210 |  |
| Total                     |   | $ | — |  |   | $ | 210 |  |   | $ | 834 |  |   | $ | 1,044 |  |
|                      |   |   |   |   |   |   |   |   |

----

|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                     |   | Three months ended March 31, |
|                                                      |   | 2018 |   | 2017 |
| Gross loss and loss expense reserves, beginning of period |   | $ | 5,219 |  |   | $ | 5,035 |  |
| Less reinsurance recoverable                              |   | 187 |  |   | 298 |  |
| Net loss and loss expense reserves, beginning of period   |   | 5,032 |  |   | 4,737 |  |
| Net incurred loss and loss expenses related to:           |   |   |  |   |   |  |
| Current accident year                                     |   | 839 |  |   | 826 |  |
| Prior accident years                                      |   | (48 | ) |   | (38 | ) |
| Total incurred                                            |   | 791 |  |   | 788 |  |
| Net paid loss and loss expenses related to:               |   |   |  |   |   |  |
| Current accident year                                     |   | 195 |  |   | 185 |  |
| Prior accident years                                      |   | 519 |  |   | 509 |  |
| Total paid                                                |   | 714 |  |   | 694 |  |
| Net loss and loss expense reserves, end of period         |   | 5,109 |  |   | 4,831 |  |
| Plus reinsurance recoverable                              |   | 184 |  |   | 297 |  |
| Gross loss and loss expense reserves, end of period       |   | $ | 5,293 |  |   | $ | 5,128 |  |
|                                                      |   |   |   |   |

----

----

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |
| (Dollars in millions)                              |   | March 31, 2018 |   | December 31, 2017 |
| Life policy reserves:                              |   |   |   |   |
| Ordinary/traditional life                          |   | $ | 1,098 |  |   | $ | 1,080 |  |
| Other                                              |   | 47 |  |   | 47 |  |
| Subtotal                                           |   | 1,145 |  |   | 1,127 |  |
| Investment contract reserves:                      |   |   |   |   |
| Deferred annuities                                 |   | 821 |  |   | 835 |  |
| Universal life                                     |   | 607 |  |   | 601 |  |
| Structured settlements                             |   | 161 |  |   | 160 |  |
| Other                                              |   | 6 |  |   | 6 |  |
| Subtotal                                           |   | 1,595 |  |   | 1,602 |  |
| Total life policy and investment contract reserves |   | $ | 2,740 |  |   | $ | 2,729 |  |
|                                               |   |   |   |   |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |
| (Dollars in millions)                                        | Three months ended March 31, |
|                                                              | 2018 |   | 2017 |
| Property casualty:                                           |   |   |   |
| Deferred policy acquisition costs asset, beginning of period | $ | 438 |  |   | $ | 408 |  |
| Capitalized deferred policy acquisition costs                | 232 |  |   | 226 |  |
| Amortized deferred policy acquisition costs                  | (224 | ) |   | (206 | ) |
| Deferred policy acquisition costs asset, end of period       | $ | 446 |  |   | $ | 428 |  |
|                                                         |   |   |   |
| Life:                                                        |   |   |   |
| Deferred policy acquisition costs asset, beginning of period | $ | 232 |  |   | $ | 229 |  |
| Capitalized deferred policy acquisition costs                | 13 |  |   | 13 |  |
| Amortized deferred policy acquisition costs                  | (10 | ) |   | (8 | ) |
| Amortized shadow deferred policy acquisition costs           | 10 |  |   | (2 | ) |
| Deferred policy acquisition costs asset, end of period       | $ | 245 |  |   | $ | 232 |  |
|                                                         |   |   |   |
| Consolidated:                                                |   |   |   |
| Deferred policy acquisition costs asset, beginning of period | $ | 670 |  |   | $ | 637 |  |
| Capitalized deferred policy acquisition costs                | 245 |  |   | 239 |  |
| Amortized deferred policy acquisition costs                  | (234 | ) |   | (214 | ) |
| Amortized shadow deferred policy acquisition costs           | 10 |  |   | (2 | ) |
| Deferred policy acquisition costs asset, end of period       | $ | 691 |  |   | $ | 660 |  |
|                                                         |   |   |   |

----

|        |
|--------|
|        |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                       |
|---------------------------------------------------------------------------------------|
|                                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                                 | Three months ended March 31, |
|                                                                                  | 2018 |   |   | 2017 |
|                                                                                  | Before tax |   | Income tax |   | Net |   |   | Before tax |   | Income tax |   | Net |
| Investments:                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| AOCI, beginning of period                                                             | $ | 3,540 |  |   | $ | 733 |  |   | $ | 2,807 |  |   |   | $ | 2,625 |  |   | $ | 908 |  |   | $ | 1,717 |  |
| Cumulative effect of change in accounting for equity securities as of January 1, 2018 | (3,155 | ) |   | (652 | ) |   | (2,503 | ) |   |   | — |  |   | — |  |   | — |  |
| Adjusted AOCI, beginning of period                                                    | 385 |  |   | 81 |  |   | 304 |  |   |   | 2,625 |  |   | 908 |  |   | 1,717 |  |
| OCI before investment gains recognized in net income                                  | (217 | ) |   | (45 | ) |   | (172 | ) |   |   | 290 |  |   | 102 |  |   | 188 |  |
| Investment gains recognized in net income                                             | (4 | ) |   | (1 | ) |   | (3 | ) |   |   | (159 | ) |   | (56 | ) |   | (103 | ) |
| OCI                                                                                   | (221 | ) |   | (46 | ) |   | (175 | ) |   |   | 131 |  |   | 46 |  |   | 85 |  |
| AOCI, end of period                                                                   | $ | 164 |  |   | $ | 35 |  |   | $ | 129 |  |   |   | $ | 2,756 |  |   | $ | 954 |  |   | $ | 1,802 |  |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Pension obligations:                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| AOCI, beginning of period                                                             | $ | (12 | ) |   | $ | (1 | ) |   | $ | (11 | ) |   |   | $ | (26 | ) |   | $ | (8 | ) |   | $ | (18 | ) |
| OCI excluding amortization recognized in net income                                   | — |  |   | — |  |   | — |  |   |   | — |  |   | — |  |   | — |  |
| Amortization recognized in net income                                                 | — |  |   | — |  |   | — |  |   |   | 1 |  |   | — |  |   | 1 |  |
| OCI                                                                                   | — |  |   | — |  |   | — |  |   |   | 1 |  |   | — |  |   | 1 |  |
| AOCI, end of period                                                                   | $ | (12 | ) |   | $ | (1 | ) |   | $ | (11 | ) |   |   | $ | (25 | ) |   | $ | (8 | ) |   | $ | (17 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Life deferred acquisition costs, life policy reserves and other:                      |   |   |   |   |   |   |   |   |   |   |   |   |
| AOCI, beginning of period                                                             | $ | (10 | ) |   | $ | (2 | ) |   | $ | (8 | ) |   |   | $ | (9 | ) |   | $ | (3 | ) |   | $ | (6 | ) |
| OCI before realized gains and losses recognized in net  income              | 6 |  |   | 1 |  |   | 5 |  |   |   | 3 |  |   | 2 |  |   | 1 |  |
| Realized gains recognized in net income                                               | — |  |   | — |  |   | — |  |   |   | (1 | ) |   | (1 | ) |   | — |  |
| OCI                                                                                   | 6 |  |   | 1 |  |   | 5 |  |   |   | 2 |  |   | 1 |  |   | 1 |  |
| AOCI, end of period                                                                   | $ | (4 | ) |   | $ | (1 | ) |   | $ | (3 | ) |   |   | $ | (7 | ) |   | $ | (2 | ) |   | $ | (5 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Summary of AOCI:                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| AOCI, beginning of period                                                             | $ | 3,518 |  |   | $ | 730 |  |   | $ | 2,788 |  |   |   | $ | 2,590 |  |   | $ | 897 |  |   | $ | 1,693 |  |
| Cumulative effect of change in accounting for equity securities as of January 1, 2018 | (3,155 | ) |   | (652 | ) |   | (2,503 | ) |   |   | — |  |   | — |  |   | — |  |
| Adjusted AOCI, beginning of period                                                    | 363 |  |   | 78 |  |   | 285 |  |   |   | 2,590 |  |   | 897 |  |   | 1,693 |  |
| Investments OCI                                                                       | (221 | ) |   | (46 | ) |   | (175 | ) |   |   | 131 |  |   | 46 |  |   | 85 |  |
| Pension obligations OCI                                                               | — |  |   | — |  |   | — |  |   |   | 1 |  |   | — |  |   | 1 |  |
| Life deferred acquisition costs, life policy reserves and other OCI                   | 6 |  |   | 1 |  |   | 5 |  |   |   | 2 |  |   | 1 |  |   | 1 |  |
| Total OCI                                                                             | (215 | ) |   | (45 | ) |   | (170 | ) |   |   | 134 |  |   | 47 |  |   | 87 |  |
| AOCI, end of period                                                                   | $ | 148 |  |   | $ | 33 |  |   | $ | 115 |  |   |   | $ | 2,724 |  |   | $ | 944 |  |   | $ | 1,780 |  |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |
| (Dollars in millions)    |   | Three months ended March 31, |
|                     |   | 2018 |   | 2017 |
| Direct written premiums  |   | $ | 1,247 |  |   | $ | 1,226 |  |
| Assumed written premiums |   | 49 |  |   | 33 |  |
| Ceded written premiums   |   | (38 | ) |   | (28 | ) |
| Net written premiums     |   | $ | 1,258 |  |   | $ | 1,231 |  |
|                     |   |   |   |   |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |
| (Dollars in millions)   |   | Three months ended March 31, |
|                    |   | 2018 |   | 2017 |
| Direct earned premiums  |   | $ | 1,207 |  |   | $ | 1,163 |  |
| Assumed earned premiums |   | 33 |  |   | 27 |  |
| Ceded earned premiums   |   | (40 | ) |   | (39 | ) |
| Earned premiums         |   | $ | 1,200 |  |   | $ | 1,151 |  |
|                    |   |   |   |   |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |
| (Dollars in millions)                   |   | Three months ended March 31, |
|                                    |   | 2018 |   | 2017 |
| Direct incurred loss and loss expenses  |   | $ | 781 |  |   | $ | 788 |  |
| Assumed incurred loss and loss expenses |   | 16 |  |   | 15 |  |
| Ceded incurred loss and loss expenses   |   | (6 | ) |   | (15 | ) |
| Incurred loss and loss expenses         |   | $ | 791 |  |   | $ | 788 |  |
|                                    |   |   |   |   |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |
| (Dollars in millions)  |   | Three months ended March 31, |
|                   |   | 2018 |   | 2017 |
| Direct earned premiums |   | $ | 77 |  |   | $ | 74 |  |
| Ceded earned premiums  |   | (17 | ) |   | (17 | ) |
| Earned premiums        |   | $ | 60 |  |   | $ | 57 |  |
|                   |   |   |   |   |

----

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |
| (Dollars in millions)                      |   | Three months ended March 31, |
|                                       |   | 2018 |   | 2017 |
| Direct contract holders' benefits incurred |   | $ | 76 |  |   | $ | 76 |  |
| Ceded contract holders' benefits incurred  |   | (13 | ) |   | (11 | ) |
| Contract holders' benefits incurred        |   | $ | 63 |  |   | $ | 65 |  |
|                                       |   |   |   |   |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                  |   | Three months ended March 31, |
|                                   |   | 2018 |   | 2017 |
| Tax at statutory rate:                 |   | $ | (11 | ) |   | 21.0 | % |   | $ | 97 |  |   | 35.0 |  % |
| Increase (decrease) resulting from:    |   |   |  |   |   |  |   |   |  |   |   |  |
| Tax-exempt income from municipal bonds |   | (5 | ) |   | 10.0 |  |   | (9 | ) |   | (3.3 | ) |
| Dividend received exclusion            |   | (3 | ) |   | 6.0 |  |   | (8 | ) |   | (2.9 | ) |
| Other                                  |   | — |  |   | 1.0 |  |   | (5 | ) |   | (1.6 | ) |
| Provision for income taxes             |   | $ | (19 | ) |   | 38.0 | % |   | $ | 75 |  |   | 27.2 |  % |
|                                   |   |   |   |   |   |   |   |   |

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |
| (In millions, except per share data)             |   | Three months ended March 31, |
|                                             | 2018 |   | 2017 |
| Numerator:                                       |   |   |  |   |   |  |
| Net income (loss)—basic and diluted        |   | $ | (31 | ) |   | $ | 201 |  |
| Denominator:                                     |   |   |  |   |   |  |
| Basic weighted-average common shares outstanding |   | 164.0 |  |   | 164.6 |  |
| Effect of share-based awards:                    |   |   |  |   |   |  |
| Stock options                                    |   | — |  |   | 1.1 |  |
| Nonvested shares                                 |   | — |  |   | 0.8 |  |
| Diluted weighted-average shares                  |   | 164.0 |  |   | 166.5 |  |
| Earnings per share:                              |   |   |  |   |   |  |
| Basic                                            |   | $ | (0.19 | ) |   | $ | 1.22 |  |
| Diluted                                          |   | (0.19 | ) |   | 1.21 |  |
| Number of anti-dilutive share-based awards       |   | 2.8 |  |   | 0.7 |  |
|                                             |   |   |   |   |

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                 |   | Three months ended March 31, |
|                                                  |   | 2018 |   | 2017 |
| Service cost                                          |   | $ | 3 |  |   | $ | 3 |  |
| Non-service costs (benefit):                          |   |   |   |   |
| Interest cost                                         |   | 3 |  |   | 3 |  |
| Expected return on plan assets                        |   | (5 | ) |   | (5 | ) |
| Amortization of actuarial loss and prior service cost |   | — |  |   | 1 |  |
|  Total non-service benefit                       |   | (2 | ) |   | (1 | ) |
| Net periodic benefit cost                             |   | $ | 1 |  |   | $ | 2 |  |
|                                                  |   |   |   |   |

----

----

|         |                            |
|---------|----------------------------|
| • | Commercial lines insurance |

|         |                          |
|---------|--------------------------|
| • | Personal lines insurance |

|         |                                    |
|---------|------------------------------------|
| • | Excess and surplus lines insurance |

|         |                |
|---------|----------------|
| • | Life insurance |

|         |             |
|---------|-------------|
| • | Investments |

----

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                      |   | Three months ended March 31, |
|                                                       |   | 2018 |   | 2017 |
| Revenues:                                                  |   |   |  |   |   |  |
| Commercial lines insurance                                 |   |   |  |   |   |  |
| Commercial casualty                                        |   | $ | 265 |  |   | $ | 265 |  |
| Commercial property                                        |   | 228 |  |   | 223 |  |
| Commercial auto                                            |   | 161 |  |   | 155 |  |
| Workers' compensation                                      |   | 80 |  |   | 84 |  |
| Other commercial                                           |   | 56 |  |   | 54 |  |
| Commercial lines insurance premiums                        |   | 790 |  |   | 781 |  |
| Fee revenues                                               |   | 2 |  |   | 1 |  |
| Total commercial lines insurance                           |   | 792 |  |   | 782 |  |
|                                                       |   |   |   |   |
| Personal lines insurance                                   |   |   |  |   |   |  |
| Personal auto                                              |   | 151 |  |   | 141 |  |
| Homeowner                                                  |   | 136 |  |   | 125 |  |
| Other personal                                             |   | 38 |  |   | 34 |  |
| Personal lines insurance premiums                          |   | 325 |  |   | 300 |  |
| Fee revenues                                               |   | 1 |  |   | 2 |  |
| Total personal lines insurance                             |   | 326 |  |   | 302 |  |
|                                                       |   |   |   |   |
| Excess and surplus lines insurance                         |   | 56 |  |   | 48 |  |
|                                                       |   |   |   |   |
| Life insurance premiums                                    |   | 60 |  |   | 57 |  |
| Fee revenues                                               |   | 1 |  |   | 2 |  |
| Total life insurance                                       |   | 61 |  |   | 59 |  |
|                                                       |   |   |   |   |
| Investments                                                |   |   |   |   |
|     Investment income, net of expenses |   | 150 |  |   | 149 |  |
|     Investment gains and losses, net   |   | (191 | ) |   | 160 |  |
| Total investment revenue                                   |   | (41 | ) |   | 309 |  |
|                                                       |   |   |   |   |
| Other                                                      |   |   |   |   |
| Cincinnati Re insurance premiums                           |   | 29 |  |   | 22 |  |
| Other                                                      |   | 1 |  |   | 1 |  |
| Total other revenues                                       |   | 30 |  |   | 23 |  |
| Total revenues                                             |   | $ | 1,224 |  |   | $ | 1,523 |  |
|                                                       |   |   |   |   |
| Income (loss) before income taxes:                         |   |   |  |   |   |  |
| Insurance underwriting results                             |   |   |  |   |   |  |
| Commercial lines insurance                                 |   | $ | 15 |  |   | $ | (2 | ) |
| Personal lines insurance                                   |   | (9 | ) |   | (15 | ) |
| Excess and surplus lines insurance                         |   | 18 |  |   | 18 |  |
| Life insurance                                             |   | 2 |  |   | — |  |
| Investments                                                |   | (65 | ) |   | 286 |  |
| Other                                                      |   | (11 | ) |   | (11 | ) |
| Total income (loss) before income taxes                    |   | $ | (50 | ) |   | $ | 276 |  |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |
| Identifiable assets:        |   | March 31, 2018 |   | December 31, 2017 |
| Property casualty insurance |   | $ | 2,888 |  |   | $ | 2,863 |  |
| Life insurance              |   | 1,418 |  |   | 1,409 |  |
| Investments                 |   | 16,748 |  |   | 17,112 |  |
| Other                       |   | 416 |  |   | 459 |  |
| Total                       |   | $ | 21,470 |  |   | $ | 21,843 |  |
|                        |   |   |   |   |

----

|         |                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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 |

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

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

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

|         |                                                                                                                                                                                                                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Delays, 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 |

----

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions, except per share data) |   | Three months ended March 31, |
|                                         |   | 2018 |   | 2017 |   | % Change |
| Earned premiums                              |   | $ | 1,260 |  |   | $ | 1,208 |  |   | 4 |  |
| Investment income, net of expenses (pretax)  |   | 150 |  |   | 149 |  |   | 1 |  |
| Investment gains and losses, net (pretax)    |   | (191 | ) |   | 160 |  |   | nm |  |
| Total revenues                               |   | 1,224 |  |   | 1,523 |  |   | (20 | ) |
| Net income (loss)                            |   | (31 | ) |   | 201 |  |   | nm |  |
| Comprehensive income (loss)                  |   | (201 | ) |   | 288 |  |   | nm |  |
| Net income (loss) per share—diluted    |   | (0.19 | ) |   | 1.21 |  |   | nm |  |
| Cash dividends declared per share            |   | 0.53 |  |   | 0.50 |  |   | 6 |  |
| Diluted weighted average shares outstanding  |   | 164.0 |  |   | 166.5 |  |   | (2 | ) |
|                                         |   |   |   |   |   |   |

----

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |
| (Dollars in millions, except share data) |   | At March 31, |   | At December 31, |
|                                     |   | 2018 |   | 2017 |
| Total investments                        |   | $ | 16,721 |  |   | $ | 17,051 |  |
| Total assets                             |   | 21,470 |  |   | 21,843 |  |
| Short-term debt                          |   | 24 |  |   | 24 |  |
| Long-term debt                           |   | 787 |  |   | 787 |  |
| Shareholders' equity                     |   | 7,946 |  |   | 8,243 |  |
| Book value per share                     |   | 48.42 |  |   | 50.29 |  |
| Debt-to-total-capital ratio              |   | 9.3 | % |   | 9.0 | % |
|                                     |   |   |   |   |

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |
|                                                               |   | Three months ended March 31, |
|                                                               |   | 2018 |   | 2017 |
| Value creation ratio major components:                             |   |   |  |   |   |  |
| Net income before investment gains                                 |   | 1.5 |  % |   | 1.4 |  % |
| Change in fixed-maturity securities, realized and unrealized gains |   | (2.1 | ) |   | 0.4 |  |
| Change in equity securities, investment gains                      |   | (1.9 | ) |   | 2.3 |  |
| Other                                                              |   | (0.2 | ) |   | (0.3 | ) |
|      Value creation ratio                 |   | (2.7 | )% |   | 3.8 |  % |
|                                                               |   |   |   |   |

|        |
|--------|
|        |  |  |  |  |
|   |   |   |   |   |

----

|                                                                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                       |  |  |  |  |  |  |  |  |
| (Dollars are per share)                                                                                                                               |   | Three months ended March 31, |
|                                                                                                                                                  |   | 2018 |   | 2017 |
| Value creation ratio:                                                                                                                                 |   |   |  |   |   |  |
| End of period book value*                                                                                                                             |   | $ | 48.42 |  |   | $ | 44.07 |  |
| Less beginning of period book value                                                                                                                   |   | 50.29 |  |   | 42.95 |  |
| Change in book value                                                                                                                                  |   | (1.87 | ) |   | 1.12 |  |
| Dividend declared to shareholders                                                                                                                     |   | 0.53 |  |   | 0.50 |  |
| Total value creation                                                                                                                                  |   | $ | (1.34 | ) |   | $ | 1.62 |  |
|                                                                                                                                                  |   |   |   |   |
| Value creation ratio from change in book value**                                                                                                      |   | (3.7 | )% |   | 2.6 | % |
| Value creation ratio from dividends declared to shareholders***                                                                                       |   | 1.0 |  |   | 1.2 |  |
| Value creation ratio                                                                                                                                  |   | (2.7 | )% |   | 3.8 | % |
|                                                                                                                                                  |   |   |   |   |
|     * 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                                                                       |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Premium growth – We believe our agency relationships and initiatives can lead to a property casualty written premium growth rate over any five-year period that exceeds the industry average. For the first three months of 2018, our consolidated property casualty net written premium year-over-year growth was 2 percent. As of February 2018, A.M. Best projected the industry's full-year 2018 written premium growth at approximately 4 percent. For the five-year period 2013 through 2017, our growth rate was nearly double that of the industry. The industry's growth rate excludes its mortgage and financial guaranty lines of business. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Combined ratio – We believe our underwriting philosophy and initiatives can generate a GAAP combined ratio over any five-year period that is consistently within the range of 95 percent to 100 percent. For the first three months of 2018, our GAAP combined ratio was 97.9 percent and our statutory combined ratio was 96.4 percent, both including 5.0 percentage points of current accident year catastrophe losses partially offset by 3.9 percentage points of favorable loss reserve development on prior accident years. As of February 2018, A.M. Best projected the industry's full-year 2018 statutory combined ratio at approximately 100 percent, including approximately 5 percentage points of catastrophe losses and a favorable effect of approximately 1 percentage point of loss reserve development on prior accident years. The industry's ratio again excludes its mortgage and financial guaranty lines of business. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Investment contribution – We believe our investment philosophy and initiatives can drive investment income growth and lead to a total return on our equity investment portfolio over a five-year period that exceeds the five-year return of the Standard & Poor’s 500 Index. For the first three months of 2018, pretax investment income was $150 million, up 1 percent compared with the same period in 2017. We believe our investment portfolio mix provides an appropriate balance of income stability and growth with capital appreciation potential. |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Manage insurance profitability – Implementation of these initiatives is intended to enhance underwriting expertise and knowledge, thereby increasing our ability to manage our business while also gaining efficiency. Better profit margins can arise from additional information and more focused action on underperforming product lines, plus pricing capabilities we are expanding through the use of technology and analytics. In addition to enhancing company efficiency, improving internal processes also supports the ability of the independent agencies that represent us to grow profitably by allowing them to serve clients faster and to more efficiently manage agency expenses. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Drive premium growth – Implementation of these initiatives is intended to further penetrate each market we serve through our independent agencies. Strategies aimed at specific market opportunities, along with service enhancements, can help our agents grow and increase our share of their business. Premium growth initiatives also include expansion of Cincinnati ReSM – our reinsurance assumed operation. Diversified growth also may reduce variability of losses from weather-related catastrophes. |

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |
| Insurer Financial Strength Ratings               |
| Ratingagency                                     | Standard market property casualty insurance subsidiaries | Life insurance subsidiary | Excess and surplus lines insurance subsidiary | Outlook |
|                                             |   |   | Ratingtier |   |   | Ratingtier |   |   | Ratingtier |   |
| A.M. Best Co. ambest.com                    | A+ | Superior | 2 of 16 | A | Excellent | 3 of 16 | A+ | Superior | 2 of 16 | Stable/ Positive/ Stable |
| Fitch Ratings   fitchratings.com            | A+ | Strong | 5 of 21 | A+ | Strong | 5 of 21 | - | - | - | Stable |
| Moody's Investors  Service  moodys.com | A1 | Good | 5 of 21 | - | - | - | - | - | - | Stable |
| S&P Global  Ratings  spratings.com | A+ | Strong | 5 of 21 | A+ | Strong | 5 of 21 | - | - | - | Stable |

----

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                        |   | Three months ended March 31, |
|                                                                         |   | 2018 |   | 2017 |   | % Change |
| Earned premiums                                                              |   | $ | 1,200 |  |   | $ | 1,151 |  |   | 4 |  |
| Fee revenues                                                                 |   | 3 |  |   | 3 |  |   | 0 |  |
| Total revenues                                                               |   | 1,203 |  |   | 1,154 |  |   | 4 |  |
| Loss and loss expenses from:                                                 |   |   |  |   |   |  |   |   |  |
| Current accident year before catastrophe losses                              |   | 779 |  |   | 709 |  |   | 10 |  |
| Current accident year catastrophe losses                                     |   | 60 |  |   | 117 |  |   | (49 | ) |
| Prior accident years before catastrophe losses                               |   | (41 | ) |   | (27 | ) |   | (52 | ) |
| Prior accident years catastrophe losses                                      |   | (7 | ) |   | (11 | ) |   | 36 |  |
| Loss and loss expenses                                                       |   | 791 |  |   | 788 |  |   | 0 |  |
| Underwriting expenses                                                        |   | 383 |  |   | 360 |  |   | 6 |  |
| Underwriting profit                                                          |   | $ | 29 |  |   | $ | 6 |  |   | 383 |  |
|                                                                         |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                      |   |   |  |   |   |  |   | Pt. Change |
|     Current accident year before catastrophe losses      |   | 64.9 |  % |   | 61.6 |  % |   | 3.3 |  |
|     Current accident year catastrophe losses             |   | 5.0 |  |   | 10.2 |  |   | (5.2 | ) |
|     Prior accident years before catastrophe losses       |   | (3.3 | ) |   | (2.4 | ) |   | (0.9 | ) |
|     Prior accident years catastrophe losses              |   | (0.6 | ) |   | (1.0 | ) |   | 0.4 |  |
| Loss and loss expenses                                                       |   | 66.0 |  |   | 68.4 |  |   | (2.4 | ) |
| Underwriting expenses                                                        |   | 31.9 |  |   | 31.3 |  |   | 0.6 |  |
| Combined ratio                                                               |   | 97.9 |  % |   | 99.7 |  % |   | (1.8 | ) |
|                                                                         |   |   |   |   |   |   |
| Combined ratio                                                               |   | 97.9 |  % |   | 99.7 |  % |   | (1.8 | ) |
| Contribution from catastrophe losses and prior years reserve development     |   | 1.1 |  |   | 6.8 |  |   | (5.7 | ) |
| Combined ratio before catastrophe losses and prior years reserve development |   | 96.8 |  % |   | 92.9 |  % |   | 3.9 |  |
|                                                                         |   |   |   |   |   |   |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                |   | Three months ended March 31, |
|                                      |   | 2018 |   | 2017 |   | % Change |
| Agency renewal written premiums      |   | $ | 1,083 |  |   | $ | 1,057 |  |   | 2 |  |
| Agency new business written premiums |   | 159 |  |   | 153 |  |   | 4 |  |
| Cincinnati Re net written premiums   |   | 46 |  |   | 40 |  |   | 15 |  |
| Other written premiums               |   | (30 | ) |   | (19 | ) |   | (58 | ) |
| Net written premiums                 |   | 1,258 |  |   | 1,231 |  |   | 2 |  |
| Unearned premium change              |   | (58 | ) |   | (80 | ) |   | 28 |  |
| Earned premiums                      |   | $ | 1,200 |  |   | $ | 1,151 |  |   | 4 |  |
|                                 |   |   |   |   |   |   |

----

----

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions, net of reinsurance)  | Three months ended March 31, |
|                                       |   |   | Comm. |   | Pers. |   | E&S |   | Cin. |   |   |  |
| Dates                                      | Event | Region | lines |   | lines |   | lines |   | Re |   | Total |
| 2018                                       |   |   |   |   |   |   |   |   |   |   |   |
| Jan. 8-10                                  | Flood, wind | West | $ | — |  |   | $ | 11 |  |   | $ | — |  |   | $ | — |  |   | $ | 11 |  |
| Mar. 1-3                                   | Freezing, ice, snow, wind | Northeast, South | 6 |  |   | 6 |  |   | — |  |   | — |  |   | 12 |  |
| Mar. 18-21                                 | Flood, hail, wind | South | 17 |  |   | 5 |  |   | 1 |  |   | — |  |   | 23 |  |
| All other 2018 catastrophes                | 7 |  |   | 7 |  |   | — |  |   | — |  |   | 14 |  |
| Development on 2017 and prior catastrophes | (7 | ) |   | — |  |   | — |  |   | — |  |   | (7 | ) |
| Calendar year incurred total               | $ | 23 |  |   | $ | 29 |  |   | $ | 1 |  |   | $ | — |  |   | $ | 53 |  |
|                                            |   |   |   |   |   |   |   |   |   |   |   |
| 2017                                       |   |   |   |   |   |   |   |   |   |   |   |
| Feb. 28-Mar. 1                             | Flood, hail, wind | Midwest, South | $ | 21 |  |   | $ | 20 |  |   | $ | 1 |  |   | $ | — |  |   | $ | 42 |  |
| Mar. 6-9                                   | Flood, hail, wind | Midwest, Northeast, South | 22 |  |   | 13 |  |   | — |  |   | — |  |   | 35 |  |
| Mar. 21-22                                 | Flood, hail, wind | South | 13 |  |   | 10 |  |   | — |  |   | — |  |   | 23 |  |
| All other 2017 catastrophes                | 12 |  |   | 5 |  |   | — |  |   | — |  |   | 17 |  |
| Development on 2016 and prior catastrophes | (9 | ) |   | (1 | ) |   | — |  |   | (1 | ) |   | (11 | ) |
| Calendar year incurred total               | $ | 59 |  |   | $ | 47 |  |   | $ | 1 |  |   | $ | (1 | ) |   | $ | 106 |  |
|                                       |   |   |   |   |   |   |   |   |

|        |
|--------|
|        |  |  |  |  |  |  |  |  |  |  |  |
|   |   |   |   |   |   |   |   |   |   |   |   |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions, net of reinsurance)            |   | Three months ended March 31, |
|                                                 |   | 2018 |   | 2017 |   | % Change |
| Current accident year losses greater than $5 million |   | $ | 15 |  |   | $ | 28 |  |   | (46 | ) |
| Current accident year losses $1 million - $5 million |   | 32 |  |   | 29 |  |   | 10 |  |
| Large loss prior accident year reserve development   |   | 34 |  |   | 17 |  |   | 100 |  |
| Total large losses incurred                          |   | 81 |  |   | 74 |  |   | 9 |  |
| Losses incurred but not reported                     |   | 10 |  |   | 4 |  |   | 150 |  |
| Other losses excluding catastrophe losses            |   | 520 |  |   | 467 |  |   | 11 |  |
| Catastrophe losses                                   |   | 51 |  |   | 103 |  |   | (50 | ) |
| Total losses incurred                                |   | $ | 662 |  |   | $ | 648 |  |   | 2 |  |
|                                                 |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:              |   |   |   |   |   | Pt. Change |
| Current accident year losses greater than $5 million |   | 1.3 | % |   | 2.4 | % |   | (1.1 | ) |
| Current accident year losses $1 million - $5 million |   | 2.7 |  |   | 2.5 |  |   | 0.2 |  |
| Large loss prior accident year reserve development   |   | 2.8 |  |   | 1.5 |  |   | 1.3 |  |
| Total large loss ratio                               |   | 6.8 |  |   | 6.4 |  |   | 0.4 |  |
| Losses incurred but not reported                     |   | 0.8 |  |   | 0.4 |  |   | 0.4 |  |
| Other losses excluding catastrophe losses            |   | 43.4 |  |   | 40.5 |  |   | 2.9 |  |
| Catastrophe losses                                   |   | 4.2 |  |   | 9.0 |  |   | (4.8 | ) |
| Total loss ratio                                     |   | 55.2 | % |   | 56.3 | % |   | (1.1 | ) |
|                                                 |   |   |   |   |   |   |

----

----

|         |                                              |
|---------|----------------------------------------------|
| • | Commercial lines property casualty insurance |

|         |                                            |
|---------|--------------------------------------------|
| • | Personal lines property casualty insurance |

|         |                                                      |
|---------|------------------------------------------------------|
| • | Excess and surplus lines property casualty insurance |

|         |                |
|---------|----------------|
| • | Life insurance |

|         |             |
|---------|-------------|
| • | Investments |

----

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                        |   | Three months ended March 31, |
|                                                                              |   | 2018 |   | 2017 |   | % Change |
| Earned premiums                                                              |   | $ | 790 |  |   | $ | 781 |  |   | 1 |  |
| Fee revenues                                                                 |   | 2 |  |   | 1 |  |   | 100 |  |
| Total revenues                                                               |   | 792 |  |   | 782 |  |   | 1 |  |
| Loss and loss expenses from:                                                 |   |   |  |   |   |  |   |   |  |
| Current accident year before catastrophe losses                              |   | 524 |  |   | 478 |  |   | 10 |  |
| Current accident year catastrophe losses                                     |   | 30 |  |   | 68 |  |   | (56 | ) |
| Prior accident years before catastrophe losses                               |   | (28 | ) |   | (2 | ) |   | nm |  |
| Prior accident years catastrophe losses                                      |   | (7 | ) |   | (9 | ) |   | 22 |  |
| Loss and loss expenses                                                       |   | 519 |  |   | 535 |  |   | (3 | ) |
| Underwriting expenses                                                        |   | 258 |  |   | 249 |  |   | 4 |  |
| Underwriting profit (loss)                                                   |   | $ | 15 |  |   | $ | (2 | ) |   | nm |  |
|                                                                         |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                      |   |   |   |   |   | Pt. Change |
| Current accident year before catastrophe losses                              |   | 66.2 |  % |   | 61.2 |  % |   | 5.0 |  |
| Current accident year catastrophe losses                                     |   | 3.8 |  |   | 8.7 |  |   | (4.9 | ) |
| Prior accident years before catastrophe losses                               |   | (3.5 | ) |   | (0.3 | ) |   | (3.2 | ) |
| Prior accident years catastrophe losses                                      |   | (0.9 | ) |   | (1.1 | ) |   | 0.2 |  |
| Loss and loss expenses                                                       |   | 65.6 |  |   | 68.5 |  |   | (2.9 | ) |
| Underwriting expenses                                                        |   | 32.7 |  |   | 31.9 |  |   | 0.8 |  |
| Combined ratio                                                               |   | 98.3 |  % |   | 100.4 |  % |   | (2.1 | ) |
|                                                                         |   |   |   |   |   |   |
| Combined ratio                                                               |   | 98.3 |  % |   | 100.4 |  % |   | (2.1 | ) |
| Contribution from catastrophe losses and prior years reserve development     |   | (0.6 | ) |   | 7.3 |  |   | (7.9 | ) |
| Combined ratio before catastrophe losses and prior years reserve development |   | 98.9 |  % |   | 93.1 |  % |   | 5.8 |  |
|                                                                         |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Premiums – Earned premiums for the commercial lines segment grew during the first three months of 2018. The table below analyzes the primary components of premiums. We continue using predictive analytics tools to improve pricing precision and segmentation while also leveraging our local relationships with agents through the efforts of our teams that work closely with them. We seek to maintain appropriate pricing discipline for both new and renewal business as our agents and underwriters assess account quality to make careful decisions on a case-by-case basis whether to write or renew a policy. |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                |   | Three months ended March 31, |
|                                 |   | 2018 |   | 2017 |   | % Change |
| Agency renewal written premiums      |   | $ | 771 |  |   | $ | 772 |  |   | 0 |  |
| Agency new business written premiums |   | 104 |  |   | 103 |  |   | 1 |  |
| Other written premiums               |   | (21 | ) |   | (10 | ) |   | (110 | ) |
| Net written premiums                 |   | 854 |  |   | 865 |  |   | (1 | ) |
| Unearned premium change              |   | (64 | ) |   | (84 | ) |   | 24 |  |
| Earned premiums                      |   | $ | 790 |  |   | $ | 781 |  |   | 1 |  |
|                                 |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Combined ratio – The commercial lines combined ratio decreased 2.1 percentage points for the first three months of 2018, compared with the same period a year ago, largely due to a decrease in losses from natural catastrophes. The first-quarter 2018 combined ratio also reflected higher noncatastrophe weather-related losses and a higher amount of benefit from favorable reserve development on prior accident years, discussed below. |

----

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions, net of reinsurance)            |   | Three months ended March 31, |
|                                                 |   | 2018 |   | 2017 |   | % Change |
| Current accident year losses greater than $5 million |   | $ | 15 |  |   | $ | 28 |  |   | (46 | ) |
| Current accident year losses $1 million - $5 million |   | 22 |  |   | 26 |  |   | (15 | ) |
| Large loss prior accident year reserve development   |   | 29 |  |   | 17 |  |   | 71 |  |
| Total large losses incurred                          |   | 66 |  |   | 71 |  |   | (7 | ) |
| Losses incurred but not reported                     |   | 16 |  |   | (5 | ) |   | nm |  |
| Other losses excluding catastrophe losses            |   | 325 |  |   | 306 |  |   | 6 |  |
| Catastrophe losses                                   |   | 22 |  |   | 58 |  |   | (62 | ) |
| Total losses incurred                                |   | $ | 429 |  |   | $ | 430 |  |   | 0 |  |
|                                                 |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:              |   |   |   |   |   | Pt. Change |
| Current accident year losses greater than $5 million |   | 1.9 | % |   | 3.6 |  % |   | (1.7 | ) |
| Current accident year losses $1 million - $5 million |   | 2.9 |  |   | 3.3 |  |   | (0.4 | ) |
| Large loss prior accident year reserve development   |   | 3.6 |  |   | 2.2 |  |   | 1.4 |  |
| Total large loss ratio                               |   | 8.4 |  |   | 9.1 |  |   | (0.7 | ) |
| Losses incurred but not reported                     |   | 2.1 |  |   | (0.6 | ) |   | 2.7 |  |
| Other losses excluding catastrophe losses            |   | 41.1 |  |   | 39.2 |  |   | 1.9 |  |
| Catastrophe losses                                   |   | 2.8 |  |   | 7.4 |  |   | (4.6 | ) |
| Total loss ratio                                     |   | 54.4 | % |   | 55.1 |  % |   | (0.7 | ) |
|                                                 |   |   |   |   |   |   |

----

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                        |   | Three months ended March 31, |
|                                                                         |   | 2018 |   | 2017 |   | % Change |
| Earned premiums                                                              |   | $ | 325 |  |   | $ | 300 |  |   | 8 |  |
| Fee revenues                                                                 |   | 1 |  |   | 2 |  |   | (50 | ) |
| Total revenues                                                               |   | 326 |  |   | 302 |  |   | 8 |  |
| Loss and loss expenses from:                                                 |   |   |  |   |   |  |   |   |  |
| Current accident year before catastrophe losses                              |   | 210 |  |   | 193 |  |   | 9 |  |
| Current accident year catastrophe losses                                     |   | 29 |  |   | 48 |  |   | (40 | ) |
| Prior accident years before catastrophe losses                               |   | (1 | ) |   | (9 | ) |   | 89 |  |
| Prior accident years catastrophe losses                                      |   | — |  |   | (1 | ) |   | 100 |  |
| Loss and loss expenses                                                       |   | 238 |  |   | 231 |  |   | 3 |  |
| Underwriting expenses                                                        |   | 97 |  |   | 86 |  |   | 13 |  |
| Underwriting loss                                                            |   | $ | (9 | ) |   | $ | (15 | ) |   | 40 |  |
|                                                                         |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                      |   |   |   |   |   | Pt. Change |
| Current accident year before catastrophe losses                              |   | 64.5 |  % |   | 64.1 |  % |   | 0.4 |  |
| Current accident year catastrophe losses                                     |   | 9.0 |  |   | 16.0 |  |   | (7.0 | ) |
| Prior accident years before catastrophe losses                               |   | (0.1 | ) |   | (2.9 | ) |   | 2.8 |  |
| Prior accident years catastrophe losses                                      |   | (0.1 | ) |   | (0.4 | ) |   | 0.3 |  |
| Loss and loss expenses                                                       |   | 73.3 |  |   | 76.8 |  |   | (3.5 | ) |
| Underwriting expenses                                                        |   | 29.9 |  |   | 28.7 |  |   | 1.2 |  |
| Combined ratio                                                               |   | 103.2 |  % |   | 105.5 |  % |   | (2.3 | ) |
|                                                                         |   |   |   |   |   |   |
| Combined ratio                                                               |   | 103.2 |  % |   | 105.5 |  % |   | (2.3 | ) |
| Contribution from catastrophe losses and prior years reserve development     |   | 8.8 |  |   | 12.7 |  |   | (3.9 | ) |
| Combined ratio before catastrophe losses and prior years reserve development |   | 94.4 |  % |   | 92.8 |  % |   | 1.6 |  |
|                                                                         |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Premiums – Personal lines earned premiums and net written premiums for the first three months of 2018 continued to grow, reflecting increases in renewal written premiums and new business written premiums from agencies that represent us. Price increases and a high level of policy retention were the main drivers of renewal premium growth. The table below analyzes the primary components of premiums. |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                |   | Three months ended March 31, |
|                                 |   | 2018 |   | 2017 |   | % Change |
| Agency renewal written premiums      |   | $ | 264 |  |   | $ | 245 |  |   | 8 |
| Agency new business written premiums |   | 39 |  |   | 34 |  |   | 15 |
| Other written premiums               |   | (6 | ) |   | (6 | ) |   | 0 |
| Net written premiums                 |   | 297 |  |   | 273 |  |   | 9 |
| Unearned premium change              |   | 28 |  |   | 27 |  |   | 4 |
| Earned premiums                      |   | $ | 325 |  |   | $ | 300 |  |   | 8 |
|                                 |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Combined ratio – Our personal lines combined ratio for the first quarter of 2018 decreased 2.3 percentage points, compared with the same period a year ago, primarily due to a decrease of 6.7 percentage points in the ratio for weather-related natural catastrophe losses and loss expenses. The first-quarter 2018 combined ratio also reflected higher noncatastrophe weather-related losses. |

----

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions, net of reinsurance)            |   | Three months ended March 31, |
|                                                 |   | 2018 |   | 2017 |   | % Change |
| Current accident year losses greater than $5 million |   | $ | — |  |   | $ | — |  |   | nm |  |
| Current accident year losses $1 million - $5 million |   | 10 |  |   | 3 |  |   | 233 |  |
| Large loss prior accident year reserve development   |   | 5 |  |   | — |  |   | nm |  |
| Total large losses incurred                          |   | 15 |  |   | 3 |  |   | 400 |  |
| Losses incurred but not reported                     |   | (1 | ) |   | 10 |  |   | nm |  |
| Other losses excluding catastrophe losses            |   | 167 |  |   | 144 |  |   | 16 |  |
| Catastrophe losses                                   |   | 29 |  |   | 46 |  |   | (37 | ) |
| Total losses incurred                                |   | $ | 210 |  |   | $ | 203 |  |   | 3 |  |
|                                                 |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:              |   |   |   |   |   | Pt. Change |
| Current accident year losses greater than $5 million |   | — |  % |   | — |  % |   | 0.0 |  |
| Current accident year losses $1 million - $5 million |   | 2.9 |  |   | 1.0 |  |   | 1.9 |  |
| Large loss prior accident year reserve development   |   | 1.7 |  |   | (0.2 | ) |   | 1.9 |  |
| Total large loss ratio                               |   | 4.6 |  |   | 0.8 |  |   | 3.8 |  |
| Losses incurred but not reported                     |   | (0.4 | ) |   | 3.3 |  |   | (3.7 | ) |
| Other losses excluding catastrophe losses            |   | 51.6 |  |   | 47.9 |  |   | 3.7 |  |
| Catastrophe losses                                   |   | 8.8 |  |   | 15.5 |  |   | (6.7 | ) |
| Total loss ratio                                     |   | 64.6 |  % |   | 67.5 |  % |   | (2.9 | ) |
|                                                 |   |   |   |   |   |   |

----

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                        |   | Three months ended March 31, |
|                                                                         |   | 2018 |   | 2017 |   | % Change |
| Earned premiums                                                              |   | $ | 56 |  |   | $ | 48 |  |   | 17 |  |
|                                                                         |   |   |   |   |   |   |
| Loss and loss expenses from:                                                 |   |   |  |   |   |  |   |   |  |
| Current accident year before catastrophe losses                              |   | 30 |  |   | 26 |  |   | 15 |  |
| Current accident year catastrophe losses                                     |   | 1 |  |   | 1 |  |   | 0 |  |
| Prior accident years before catastrophe losses                               |   | (10 | ) |   | (13 | ) |   | 23 |  |
| Prior accident years catastrophe losses                                      |   | — |  |   | — |  |   | 0 |  |
| Loss and loss expenses                                                       |   | 21 |  |   | 14 |  |   | 50 |  |
| Underwriting expenses                                                        |   | 17 |  |   | 16 |  |   | 6 |  |
| Underwriting profit                                                          |   | $ | 18 |  |   | $ | 18 |  |   | 0 |  |
|                                                                         |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                      |   |   |   |   |   | Pt. Change |
| Current accident year before catastrophe losses                              |   | 54.6 |  % |   | 55.5 |  % |   | (0.9 | ) |
| Current accident year catastrophe losses                                     |   | 1.8 |  |   | 1.2 |  |   | 0.6 |  |
| Prior accident years before catastrophe losses                               |   | (17.2 | ) |   | (27.4 | ) |   | 10.2 |  |
| Prior accident years catastrophe losses                                      |   | 0.1 |  |   | (0.4 | ) |   | 0.5 |  |
| Loss and loss expenses                                                       |   | 39.3 |  |   | 28.9 |  |   | 10.4 |  |
| Underwriting expenses                                                        |   | 29.5 |  |   | 33.4 |  |   | (3.9 | ) |
| Combined ratio                                                               |   | 68.8 |  % |   | 62.3 |  % |   | 6.5 |  |
|                                                                         |   |   |   |   |   |   |
| Combined ratio                                                               |   | 68.8 |  % |   | 62.3 |  % |   | 6.5 |  |
| Contribution from catastrophe losses and prior years reserve development     |   | (15.3 | ) |   | (26.6 | ) |   | 11.3 |  |
| Combined ratio before catastrophe losses and prior years reserve development |   | 84.1 |  % |   | 88.9 |  % |   | (4.8 | ) |
|                                                                         |   |   |   |   |   |   |

|         |                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Premiums – Excess and surplus lines net written premiums continued to grow, primarily due to increases in renewal written premiums, during the first three months of 2018. |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                |   | Three months ended March 31, |
|                                 |   | 2018 |   | 2017 |   | % Change |
| Agency renewal written premiums      |   | $ | 48 |  |   | $ | 40 |  |   | 20 |
| Agency new business written premiums |   | 16 |  |   | 16 |  |   | 0 |
| Other written premiums               |   | (3 | ) |   | (3 | ) |   | 0 |
| Net written premiums                 |   | 61 |  |   | 53 |  |   | 15 |
| Unearned premium change              |   | (5 | ) |   | (5 | ) |   | 0 |
| Earned premiums                      |   | $ | 56 |  |   | $ | 48 |  |   | 17 |
|                                 |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Combined ratio – The excess and surplus lines combined ratio increased by 6.5 percentage points for the first quarter of 2018, compared with the same period of 2017, primarily due to less favorable reserve development on prior accident years. |

----

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions, net of reinsurance)            |   | Three months ended March 31, |
|                                                 |   | 2018 |   | 2017 |   | % Change |
| Current accident year losses greater than $5 million |   | $ | — |  |   | $ | — |  |   | nm |  |
| Current accident year losses $1 million - $5 million |   | — |  |   | — |  |   | nm |  |
| Large loss prior accident year reserve development   |   | — |  |   | — |  |   | nm |  |
| Total large losses incurred                          |   | — |  |   | — |  |   | nm |  |
| Losses incurred but not reported                     |   | (5 | ) |   | (1 | ) |   | nm |  |
| Other losses excluding catastrophe losses            |   | 14 |  |   | 8 |  |   | 75 |  |
| Catastrophe losses                                   |   | 1 |  |   | — |  |   | nm |  |
| Total losses incurred                                |   | $ | 10 |  |   | $ | 7 |  |   | 43 |  |
|                                                 |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:              |   |   |   |   |   | Pt. Change |
| Current accident year losses greater than $5 million |   | — |  % |   | — |  % |   | 0.0 |  |
| Current accident year losses $1 million - $5 million |   | — |  |   | — |  |   | 0.0 |  |
| Large loss prior accident year reserve development   |   | (0.4 | ) |   | (0.3 | ) |   | (0.1 | ) |
| Total large loss ratio                               |   | (0.4 | ) |   | (0.3 | ) |   | (0.1 | ) |
| Losses incurred but not reported                     |   | (9.0 | ) |   | (1.6 | ) |   | (7.4 | ) |
| Other losses excluding catastrophe losses            |   | 26.4 |  |   | 17.0 |  |   | 9.4 |  |
| Catastrophe losses                                   |   | 1.8 |  |   | 0.8 |  |   | 1.0 |  |
| Total loss ratio                                     |   | 18.8 |  % |   | 15.9 |  % |   | 2.9 |  |
|                                                 |   |   |   |   |   |   |

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                             |   | Three months ended March 31, |
|                                              |   | 2018 |   | 2017 |   | % Change |
| Earned premiums                                   |   | $ | 60 |  |   | $ | 57 |  |   | 5 |  |
| Fee revenues                                      |   | 1 |  |   | 2 |  |   | (50 | ) |
| Total revenues                                    |   | 61 |  |   | 59 |  |   | 3 |  |
| Contract holders' benefits incurred               |   | 63 |  |   | 65 |  |   | (3 | ) |
| Investment interest credited to contract holders' |   | (24 | ) |   | (23 | ) |   | (4 | ) |
| Underwriting expenses incurred                    |   | 20 |  |   | 17 |  |   | 18 |  |
| Total benefits and expenses                       |   | 59 |  |   | 59 |  |   | 0 |  |
| Life insurance segment profit                     |   | $ | 2 |  |   | $ | — |  |   | nm |  |
|                                              |   |   |   |   |   |   |

|         |                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Revenues – Revenues increased for the three months ended March 31, 2018, primarily due to higher earned premiums from term life insurance, our largest life insurance product line. |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                        |   | Three months ended March 31, |
|                                                              |   | 2018 |   | 2017 |   | % Change |
| Term life insurance                                          |   | $ | 41 |  |   | $ | 38 |  |   | 8 |  |
| Universal life insurance                                     |   | 9 |  |   | 10 |  |   | (10 | ) |
| Other life insurance, annuity and disability income products |   | 10 |  |   | 9 |  |   | 11 |  |
| Net earned premiums                                          |   | $ | 60 |  |   | $ | 57 |  |   | 5 |  |
|                                                         |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Profitability – Our life insurance segment typically reports a small profit or loss on a GAAP basis because profits from investment income spreads are included in our investment segment results. We include only investment income credited to contract holders (including interest assumed in life insurance policy reserve calculations) in our life insurance segment results. A gain of $2 million for our life insurance segment in the first three months of 2018, compared with a gain of less than $1 million for the same period of 2017, was largely due to more favorable effects from the unlocking of actuarial assumptions. |

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                             |   | Three months ended March 31, |
|                                                   |   | 2018 |   | 2017 |   | % Change |
| Total investment income, net of expenses          |   | $ | 150 |  |   | $ | 149 |  |   | 1 |  |
| Investment interest credited to contract holders' |   | (24 | ) |   | (23 | ) |   | (4 | ) |
| Investment gains and losses, net                  |   | (191 | ) |   | 160 |  |   | nm |  |
| Investments profit (loss), pretax                 |   | $ | (65 | ) |   | $ | 286 |  |   | nm |  |
|                                              |   |   |   |   |   |   |

|                                                                                      |
|--------------------------------------------------------------------------------------|
|                                                                                      |  |  |  |  |  |
| (Dollars in millions)                                                                | % Yield |   | Principal redemptions |
| At March 31, 2018                                                                    |   |
| Fixed-maturity pretax yield profile:                                                 |   |   |   |
| Expected to mature during the remainder of 2018                                      | 5.54 |   | $ | 525 |  |
| Expected to mature during 2019                                                       | 6.03 |   | 660 |  |
| Expected to mature during 2020                                                       | 4.75 |   | 665 |  |
| Average yield and total expected redemptions from the remainder of 2018 through 2020 | 5.43 |   | $ | 1,850 |  |
|                                                                                 |   |   |   |

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |
|                                                            | Three months ended March 31, |
|                                                            | 2018 |   | 2017 |
| Average pretax yield-to-amortized cost on new fixed-maturities: |   |   |   |
| Acquired taxable fixed-maturities                               | 4.11 | % |   | 4.38 | % |
| Acquired tax-exempt fixed-maturities                            | 3.32 |  |   | 3.46 |  |
| Average total fixed-maturities acquired                         | 4.02 |  |   | 3.93 |  |
|                                                            |   |   |   |

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                  |   | Three months ended March 31, |
|                                                   |   | 2018 |   | 2017 |   | % Change |
| Investment income:                                     |   |   |  |   |   |  |   |   |  |
| Interest                                               |   | $ | 110 |  |   | $ | 111 |  |   | (1 | ) |
| Dividends                                              |   | 42 |  |   | 39 |  |   | 8 |  |
| Other                                                  |   | 1 |  |   | 1 |  |   | 0 |  |
| Less investment expenses                               |   | 3 |  |   | 2 |  |   | 50 |  |
| Investment income, pretax                              |   | 150 |  |   | 149 |  |   | 1 |  |
| Less income taxes                                      |   | 23 |  |   | 35 |  |   | (34 | ) |
| Total investment income, after-tax                     |   | $ | 127 |  |   | $ | 114 |  |   | 11 |  |
|                                                   |   |   |   |   |   |   |
| Investment returns:                                    |   |   |   |   |   |   |
| Average invested assets plus cash and cash equivalents |   | $ | 17,242 |  |   | $ | 16,141 |  |   |   |
| Average yield pretax                                   |   | 3.48 | % |   | 3.69 | % |   |   |
| Average yield after-tax                                |   | 2.95 |  |   | 2.83 |  |   |   |
| Effective tax rate                                     |   | 15.4 |  |   | 23.6 |  |   |   |
|                                                   |   |   |   |   |   |   |
| Fixed-maturity returns:                                |   |   |   |   |   |   |
| Average amortized cost                                 |   | $ | 10,339 |  |   | $ | 9,890 |  |   |   |
| Average yield pretax                                   |   | 4.26 | % |   | 4.49 | % |   |   |
| Average yield after-tax                                |   | 3.56 |  |   | 3.28 |  |   |   |
| Effective tax rate                                     |   | 16.3 |  |   | 27.0 |  |   |   |
|                                                   |   |   |   |   |   |   |

----

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |
| (Dollars in millions)                                                | Three months ended March 31, |
|                                                                 | 2018 |   | 2017 |
| Investment gains and losses:                                         |   |   |   |
| Equity securities:                                                   |   |   |   |
| Investment gains and losses on securities sold, net                  | $ | 3 |  |   | $ | — |  |
| Unrealized investment gains and losses on securities still held, net | (198 | ) |   | — |  |
| Gross realized gains                                                 | — |  |   | 153 |  |
| Gross realized losses                                                | — |  |   | (4 | ) |
| Subtotal                                                             | (195 | ) |   | 149 |  |
| Fixed maturities:                                                    |   |   |   |
| Gross realized gains                                                 | 4 |  |   | 10 |  |
| Gross realized losses                                                | — |  |   | — |  |
| Subtotal                                                             | 4 |  |   | 10 |  |
| Other                                                                | — |  |   | 1 |  |
| Total investment gains and losses reported in net income             | (191 | ) |   | 160 |  |
|                                                                 |   |   |   |
| Change in unrealized investment gains and losses:                    |   |   |   |
| Equity Securities                                                    | — |  |   | 97 |  |
| Fixed Maturities                                                     | (221 | ) |   | 34 |  |
| Total unrealized investment gains and losses reported in OCI         | (221 | ) |   | 131 |  |
| Total                                                                | $ | (412 | ) |   | $ | 291 |  |
|                                                                 |   |   |   |

|        |
|--------|
|        |  |  |  |  |
|   |   |   |   |   |

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                 |   | Three months ended March 31, |
|                                  |   | 2018 |   | 2017 |   | % Change |
| Interest and fees on loans and leases |   | $ | 1 |  |   | $ | 1 |  |   | 0 |
| Earned premiums                       |   | 29 |  |   | 22 |  |   | 32 |
| Total revenues                        |   | 30 |  |   | 23 |  |   | 30 |
| Interest expense                      |   | 13 |  |   | 13 |  |   | 0 |
| Loss and loss expenses                |   | 13 |  |   | 8 |  |   | 63 |
| Underwriting expenses                 |   | 11 |  |   | 9 |  |   | 22 |
| Operating expenses                    |   | 4 |  |   | 4 |  |   | 0 |
| Total expenses                        |   | 41 |  |   | 34 |  |   | 21 |
| Other loss                            |   | $ | (11 | ) |   | $ | (11 | ) |   | 0 |
|                                  |   |   |   |   |   |   |

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                            |   | Three months ended March 31, |
|                                             |   | 2018 |   | 2017 |   | % Change |
| Premiums collected                               |   | $ | 1,269 |  |   | $ | 1,241 |  |   | 2 |  |
| Loss and loss expenses paid                      |   | (714 | ) |   | (694 | ) |   | (3 | ) |
| Commissions and other underwriting expenses paid |   | (519 | ) |   | (497 | ) |   | (4 | ) |
| Cash flow from underwriting                      |   | 36 |  |   | 50 |  |   | (28 | ) |
| Investment income received                       |   | 108 |  |   | 105 |  |   | 3 |  |
| Cash flow from operations                        |   | $ | 144 |  |   | $ | 155 |  |   | (7 | ) |
|                                             |   |   |   |   |   |   |

----

|         |                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Commissions – Commissions paid were $327 million in the first three months of 2018. Commission payments generally track with written premiums, except for annual profit-sharing commissions typically paid during the first quarter of the year. |

|         |                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Other underwriting expenses – Many of our underwriting expenses are not contractual obligations, but reflect the ongoing expenses of our business. Noncommission underwriting expenses paid were $192 million in the first three months of 2018. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Technology costs – In addition to contractual obligations for hardware and software, we anticipate capitalizing up to $6 million in spending for key technology initiatives in 2018. Capitalized development costs related to key technology initiatives were $1 million in the first three months of 2018. These activities are conducted at our discretion, and we have no material contractual obligations for activities planned as part of these projects. |

----

----

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)  |   | Loss reserves |   | Loss expense reserves |   | Total gross reserves |   |   |
|                        |   | Case reserves |   | IBNR reserves |   |   |   | Percent of total |
| At March 31, 2018           |   |   |   |   |   |
| Commercial lines insurance: |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Commercial casualty         |   | $ | 913 |  |   | $ | 620 |  |   | $ | 576 |  |   | $ | 2,109 |  |   | 39.9 | % |
| Commercial property         |   | 246 |  |   | 22 |  |   | 52 |  |   | 320 |  |   | 6.0 |  |
| Commercial auto             |   | 400 |  |   | 129 |  |   | 127 |  |   | 656 |  |   | 12.4 |  |
| Workers' compensation       |   | 394 |  |   | 529 |  |   | 92 |  |   | 1,015 |  |   | 19.2 |  |
| Other commercial            |   | 108 |  |   | 12 |  |   | 62 |  |   | 182 |  |   | 3.4 |  |
| Subtotal                    |   | 2,061 |  |   | 1,312 |  |   | 909 |  |   | 4,282 |  |   | 80.9 |  |
| Personal lines insurance:   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Personal auto               |   | 241 |  |   | 38 |  |   | 68 |  |   | 347 |  |   | 6.6 |  |
| Homeowner                   |   | 124 |  |   | (1 | ) |   | 33 |  |   | 156 |  |   | 2.9 |  |
| Other personal              |   | 54 |  |   | 47 |  |   | 4 |  |   | 105 |  |   | 2.0 |  |
| Subtotal                    |   | 419 |  |   | 84 |  |   | 105 |  |   | 608 |  |   | 11.5 |  |
| Excess and surplus lines    |   | 111 |  |   | 82 |  |   | 78 |  |   | 271 |  |   | 5.1 |  |
| Cincinnati Re               |   | 24 |  |   | 106 |  |   | 2 |  |   | 132 |  |   | 2.5 |  |
| Total                       |   | $ | 2,615 |  |   | $ | 1,584 |  |   | $ | 1,094 |  |   | $ | 5,293 |  |   | 100.0 | % |
| At December 31, 2017   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Commercial lines insurance: |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Commercial casualty         |   | $ | 890 |  |   | $ | 611 |  |   | $ | 570 |  |   | $ | 2,071 |  |   | 39.7 | % |
| Commercial property         |   | 232 |  |   | 18 |  |   | 65 |  |   | 315 |  |   | 6.0 |  |
| Commercial auto             |   | 401 |  |   | 119 |  |   | 125 |  |   | 645 |  |   | 12.4 |  |
| Workers' compensation       |   | 393 |  |   | 533 |  |   | 96 |  |   | 1,022 |  |   | 19.6 |  |
| Other commercial            |   | 108 |  |   | 14 |  |   | 61 |  |   | 183 |  |   | 3.5 |  |
| Subtotal                    |   | 2,024 |  |   | 1,295 |  |   | 917 |  |   | 4,236 |  |   | 81.2 |  |
| Personal lines insurance:   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Personal auto               |   | 240 |  |   | 35 |  |   | 70 |  |   | 345 |  |   | 6.6 |  |
| Homeowner                   |   | 101 |  |   | 2 |  |   | 33 |  |   | 136 |  |   | 2.6 |  |
| Other personal              |   | 55 |  |   | 46 |  |   | 5 |  |   | 106 |  |   | 2.0 |  |
| Subtotal                    |   | 396 |  |   | 83 |  |   | 108 |  |   | 587 |  |   | 11.2 |  |
| Excess and surplus lines    |   | 104 |  |   | 87 |  |   | 73 |  |   | 264 |  |   | 5.1 |  |
| Cincinnati Re               |   | 20 |  |   | 110 |  |   | 2 |  |   | 132 |  |   | 2.5 |  |
| Total                       |   | $ | 2,544 |  |   | $ | 1,575 |  |   | $ | 1,100 |  |   | $ | 5,219 |  |   | 100.0 | % |
|                        |   |   |   |   |   |   |   |   |   |   |

----

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                           | At March 31, 2018 |   | At December 31, 2017 |
|                                                 | Cost or adjusted cost | Percent of total |   | Fair value | Percent of total |   | Cost or adjusted cost | Percent of total |   | Fair value | Percent of total |
| Taxable fixed maturities                             | $ | 6,467 |  | 47.8 | % |   | $ | 6,595 |  | 39.7 | % |   | $ | 6,383 |  | 47.6 | % |   | $ | 6,637 |  | 39.2 | % |
| Tax-exempt fixed maturities                          | 3,897 |  | 28.8 |  |   | 3,933 |  | 23.7 |  |   | 3,931 |  | 29.3 |  |   | 4,062 |  | 24.0 |  |
| Common equity securities                             | 2,997 |  | 22.1 |  |   | 5,893 |  | 35.5 |  |   | 2,918 |  | 21.8 |  |   | 6,039 |  | 35.6 |  |
| Nonredeemable preferred  equity securities | 172 |  | 1.3 |  |   | 193 |  | 1.1 |  |   | 176 |  | 1.3 |  |   | 210 |  | 1.2 |  |
| Total                                                | $ | 13,533 |  | 100.0 | % |   | $ | 16,614 |  | 100.0 | % |   | $ | 13,408 |  | 100.0 | % |   | $ | 16,948 |  | 100.0 | % |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |

----

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |
|                                     |   | At March 31, 2018 |   | At December 31, 2017 |
| Weighted average yield-to-amortized cost |   | 4.27 | % |   | 4.40 | % |
| Weighted average maturity                |   | 7.7 | yrs |   | 7.7 | yrs |
| Effective duration                       |   | 5.3 | yrs |   | 5.2 | yrs |
|                                     |   |   |   |   |   |   |

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |
| (Dollars in millions)                             |   | At March 31, 2018 |   | At December 31, 2017 |
| Investment-grade corporate                        |   | $ | 5,239 |  |   | $ | 5,252 |  |
| States, municipalities and political subdivisions |   | 421 |  |   | 403 |  |
| Noninvestment-grade corporate                     |   | 333 |  |   | 401 |  |
| Commercial mortgage-backed                        |   | 286 |  |   | 286 |  |
| Government sponsored enterprises                  |   | 271 |  |   | 254 |  |
| United States government                          |   | 35 |  |   | 31 |  |
| Foreign government                                |   | 10 |  |   | 10 |  |
| Total                                             |   | $ | 6,595 |  |   | $ | 6,637 |  |
|                                              |   |   |   |   |

----

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions) |   | Effect from interest rate change in basis points |
|                       |   | -200 |   |  -100 |   | - |   | 100 |   | 200 |
| At March 31, 2018          |   | $ | 11,642 |  |   | $ | 11,088 |  |   | $ | 10,528 |  |   | $ | 9,959 |  |   | $ | 9,416 |  |
| At December 31, 2017  |   | $ | 11,803 |  |   | $ | 11,249 |  |   | $ | 10,699 |  |   | $ | 10,133 |  |   | $ | 9,589 |  |
|                       |   |   |   |   |   |   |   |   |   |   |

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)     | Effect from market price change in percent |
|                      |   | -30% |   | -20% |   | -10% |   | — |   | 10% |   | 20% |   | 30% |
| At March 31, 2018    |   | $ | 4,260 |  |   | $ | 4,869 |  |   | $ | 5,477 |  |   | $ | 6,086 |  |   | $ | 6,695 |  |   | $ | 7,303 |  |   | $ | 7,912 |  |
| At December 31, 2017 |   | $ | 4,374 |  |   | $ | 4,999 |  |   | $ | 5,624 |  |   | $ | 6,249 |  |   | $ | 6,874 |  |   | $ | 7,499 |  |   | $ | 8,124 |  |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |
|                   | Percent of common stock portfolio |
|                   | At March 31, 2018 |   | At December 31, 2017 |
|                   | Cincinnati Financial |   | S&P 500 IndustryWeightings |   | CincinnatiFinancial |   | S&P 500 IndustryWeightings |
| Sector:                |   |  |   |   |  |   |   |  |   |   |  |
| Information technology | 20.6 | % |   | 22.1 | % |   | 19.5 | % |   | 23.7 | % |
| Financial              | 17.0 |  |   | 14.4 |  |   | 16.2 |  |   | 14.8 |  |
| Industrials            | 13.9 |  |   | 10.1 |  |   | 14.3 |  |   | 10.3 |  |
| Consumer discretionary | 13.2 |  |   | 12.3 |  |   | 13.6 |  |   | 12.2 |  |
| Healthcare             | 13.2 |  |   | 13.9 |  |   | 13.2 |  |   | 13.8 |  |
| Energy                 | 6.9 |  |   | 6.6 |  |   | 7.3 |  |   | 6.1 |  |
| Consumer staples       | 5.8 |  |   | 9.3 |  |   | 6.2 |  |   | 8.2 |  |
| Materials              | 4.4 |  |   | 2.8 |  |   | 5.6 |  |   | 3.0 |  |
| Utilities              | 2.4 |  |   | 3.2 |  |   | 2.1 |  |   | 2.9 |  |
| Telecomm services      | 1.6 |  |   | 2.4 |  |   | 1.7 |  |   | 2.1 |  |
| Real Estate            | 1.0 |  |   | 2.9 |  |   | 0.3 |  |   | 2.9 |  |
| Total                  | 100.0 | % |   | 100.0 | % |   | 100.0 | % |   | 100.0 | % |
|                   |   |   |   |   |   |   |   |

----

|         |                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------|
| • | 1,099 of the 1,108 holdings had fair value between 90 percent and 100 percent of amortized cost at |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Eight of the 1,108 fixed-maturity holdings had fair value between 70 percent and 90 percent of amortized cost at March 31, 2018. We believe the eight fixed-maturity securities will continue to pay interest and ultimately pay principal upon maturity. The issuers of these eight securities have strong cash flow to service their debt and meet their contractual obligation to make principal payments. The fair value of these securities was $22 million, and they accounted for $4 million in unrealized losses. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | One of the 1,108 fixed-maturity securities had fair value below 70 percent of amortized cost at March 31, 2018. We believe the remaining one fixed-maturity security will continue to pay interest and ultimately pay principal upon maturity. The issuer of this security has strong cash flow to service their debt and meet their contractual obligation to make principal payments. The fair value of this security was $2 million, and they accounted for $1 million in unrealized losses. |

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                             |   | Less than 12 months |   | 12 months or more |   | Total |
|                                              |   | Fair |   | Unrealized |   | Fair |   | Unrealized |   | Fair |   | Unrealized |
| At March 31, 2018                                 |   | value |   | losses |   | value |   | losses |   | value |   | losses |
| Fixed maturity securities:                        |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Corporate                                         |   | $ | 1,002 |  |   | $ | 20 |  |   | $ | 253 |  |   | $ | 15 |  |   | $ | 1,255 |  |   | $ | 35 |  |
| States, municipalities and political subdivisions |   | 1,052 |  |   | 21 |  |   | 256 |  |   | 14 |  |   | 1,308 |  |   | 35 |  |
| Commercial mortgage-backed securities             |   | 81 |  |   | 1 |  |   | 35 |  |   | 1 |  |   | 116 |  |   | 2 |  |
| Government-sponsored enterprises                  |   | 131 |  |   | 2 |  |   | 123 |  |   | 4 |  |   | 254 |  |   | 6 |  |
| Foreign government                                |   | 10 |  |   | — |  |   | — |  |   | — |  |   | 10 |  |   | — |  |
| United States government                          |   | 24 |  |   | 1 |  |   | 11 |  |   | — |  |   | 35 |  |   | 1 |  |
| Total                                             |   | $ | 2,300 |  |   | $ | 45 |  |   | $ | 678 |  |   | $ | 34 |  |   | $ | 2,978 |  |   | $ | 79 |  |
| At December 31, 2017                         |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fixed maturity securities:                        |   |   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Corporate                                         |   | $ | 330 |  |   | $ | 4 |  |   | $ | 252 |  |   | $ | 9 |  |   | $ | 582 |  |   | $ | 13 |  |
| States, municipalities and political subdivisions |   | 88 |  |   | 1 |  |   | 264 |  |   | 5 |  |   | 352 |  |   | 6 |  |
| Commercial mortgage-backed                        |   | 33 |  |   | — |  |   | 36 |  |   | 1 |  |   | 69 |  |   | 1 |  |
| Government-sponsored enterprises                  |   | 96 |  |   | 1 |  |   | 124 |  |   | 3 |  |   | 220 |  |   | 4 |  |
| Foreign government                                |   | 10 |  |   | — |  |   | — |  |   | — |  |   | 10 |  |   | — |  |
| United States government                          |   | 23 |  |   | — |  |   | 6 |  |   | — |  |   | 29 |  |   | — |  |
| Subtotal                                          |   | 580 |  |   | 6 |  |   | 682 |  |   | 18 |  |   | 1,262 |  |   | 24 |  |
| Equity securities:                                |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                   |   | 229 |  |   | 14 |  |   | — |  |   | — |  |   | 229 |  |   | 14 |  |
| Subtotal                                          |   | 229 |  |   | 14 |  |   | — |  |   | — |  |   | 229 |  |   | 14 |  |
| Total                                             |   | $ | 809 |  |   | $ | 20 |  |   | $ | 682 |  |   | $ | 18 |  |   | $ | 1,491 |  |   | $ | 38 |  |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                     |   | Numberof issues |   | Cost or amortizedcost |   | Fair value |   | Gross unrealized gain (loss) |   | Gross investment income |
| At March 31, 2018                                              |   |   |   |   |   |
| Taxable fixed maturities:                                      |   |   |   |   |   |   |   |   |   |   |
| Fair valued below 70% of amortized cost                        |   | 1 |  |   | $ | 3 |  |   | $ | 2 |  |   | $ | (1 | ) |   | $ | — |  |
| Fair valued at 70% to less than 100% of amortized cost         |   | 480 |  |   | 1,824 |  |   | 1,777 |  |   | (47 | ) |   | 15 |  |
| Fair valued at 100% and above of amortized cost                |   | 1,021 |  |   | 4,640 |  |   | 4,816 |  |   | 176 |  |   | 59 |  |
| Investment income on securities sold in current year           |   | — |  |   | — |  |   | — |  |   | — |  |   | 3 |  |
| Total                                                          |   | 1,502 |  |   | 6,467 |  |   | 6,595 |  |   | 128 |  |   | 77 |  |
| Tax-exempt fixed maturities:                                   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fair valued below 70% of amortized cost                        |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Fair valued at 70% to less than 100% of amortized cost         |   | 627 |  |   | 1,230 |  |   | 1,199 |  |   | (31 | ) |   | 9 |  |
| Fair valued at 100% and above of amortized cost                |   | 1,370 |  |   | 2,667 |  |   | 2,734 |  |   | 67 |  |   | 23 |  |
| Investment income on securities sold in current year           |   | — |  |   | — |  |   | — |  |   | — |  |   | 1 |  |
| Total                                                          |   | 1,997 |  |   | 3,897 |  |   | 3,933 |  |   | 36 |  |   | 33 |  |
| Fixed-maturities summary:                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fair valued below 70% of cost or amortized cost                |   | 1 |  |   | 3 |  |   | 2 |  |   | (1 | ) |   | — |  |
| Fair valued at 70% to less than 100% of cost or amortized cost |   | 1,107 |  |   | 3,054 |  |   | 2,976 |  |   | (78 | ) |   | 24 |  |
| Fair valued at 100% and above of cost or amortized cost        |   | 2,391 |  |   | 7,307 |  |   | 7,550 |  |   | 243 |  |   | 82 |  |
| Investment income on securities sold in current year           |   | — |  |   | — |  |   | — |  |   | — |  |   | 4 |  |
| Total                                                          |   | 3,499 |  |   | $ | 10,364 |  |   | $ | 10,528 |  |   | $ | 164 |  |   | $ | 110 |  |
|                                                           |   |   |   |   |   |   |   |   |   |   |
| At December 31, 2017                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Portfolio summary:                                             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fair valued below 70% of cost or amortized cost                |   | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Fair valued at 70% to less than 100% of cost or amortized cost |   | 440 |  |   | 1,529 |  |   | 1,491 |  |   | (38 | ) |   | 37 |  |
| Fair valued at 100% and above of cost or amortized cost        |   | 3,158 |  |   | 11,879 |  |   | 15,457 |  |   | 3,578 |  |   | 533 |  |
| Investment income on securities sold in current year           |   | — |  |   | — |  |   | — |  |   | — |  |   | 45 |  |
| Total                                                          |   | 3,598 |  |   | $ | 13,408 |  |   | $ | 16,948 |  |   | $ | 3,540 |  |   | $ | 615 |  |
|                                                           |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | that information required to be disclosed in the company’s reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and |

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|         |                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | that such information is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosures. |

|                     |
|---------------------|
|                     |  |  |  |  |  |  |  |  |  |  |  |  |
| Period              |   | Total number of shares purchased |   | Average price paid per share |   | Total number of shares purchased as part ofpublicly announcedplans or programs |   | Maximum number ofshares that may yet bepurchased under theplans or programs |
| January 1-31, 2018  |   | — |  |   | — |  |   | — |  |   | 17,242,065 |  |
| February 1-28, 2018 |   | 24,692 |  |   | 72.73 |  |   | 24,692 |  |   | 17,217,373 |  |
| March 1-31, 2018    |   | 175,308 |  |   | 73.86 |  |   | 175,308 |  |   | 17,042,065 |  |
| Totals              |   | 200,000 |  |   | 73.72 |  |   | 200,000 |  |   |   |  |
|                |   |   |   |   |   |   |   |   |

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|             |
|-------------|
|             |  |  |
| Exhibit No. |   | Exhibit Description |
| 3.1         |   | Amended and Restated Articles of Incorporation of Cincinnati Financial Corporation (incorporated by reference to the company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, Exhibit 3.1) |
| 3.2         |   | Regulations of Cincinnati Financial Corporation, as amended through May 1, 2010 (incorporated by reference to the company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, Exhibit 3.2) |
| 10.1        |   | Amended and Restated Cincinnati Financial Corporation Top Hat Savings Plan dated January 1, 2018 (incorporated by reference to the company's Annual Report on Form 10-K dated February 23, 2018, Exhibit 10.31) |
| 31A         |   | Certification pursuant to Section 302 of the Sarbanes Oxley Act of 2002 – Chief Executive Officer |
| 31B         |   | Certification pursuant to Section 302 of the Sarbanes Oxley Act of 2002 – Chief Financial Officer |
| 32          |   | Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002 |
| 101.INS     |   | XBRL Instance Document |
| 101.SCH     |   | XBRL Taxonomy Extension Schema Document |
| 101.CAL     |   | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF     |   | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB     |   | XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE     |   | XBRL Taxonomy Extension Presentation Linkbase Document |

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|                                                              |
|--------------------------------------------------------------|
|                                                              |
| CINCINNATI FINANCIAL CORPORATION                             |
| Date: April 25, 2018                                         |
|                                                         |
| /S/ Michael J. Sewell                                        |
| Michael J. Sewell, CPA                                       |
| Chief Financial Officer, Senior Vice President and Treasurer |
| (Principal Accounting Officer)                               |