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

|         |                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Fourth-quarter 2014 net income of $167 million, or $1.02 per share, compared with $122 million, or 74 cents per share, in the fourth quarter of 2013. |

|         |                                                                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Full-year 2014 net income of $525 million, or $3.18 per share, up 2 percent from $517 million, or $3.12, in 2013. Operating income of $440 million, or $2.66 per share, down 5 percent from $463 million, or $2.80 per share. |

|         |                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $45 million or 37 percent increase in fourth-quarter 2014 net income reflected the after-tax net effect of two primary items: a $26 million improvement in the contribution from property casualty underwriting, reflecting a $26 million dollar favorable effect from lower natural catastrophe losses, and a $16 million increase from net realized investment gains. |

|         |                                                                                        |
|---------|----------------------------------------------------------------------------------------|
| • | $40.14 book value per share at December 31, 2014, up 8 percent from December 31, 2013. |

|         |                                                                                            |
|---------|--------------------------------------------------------------------------------------------|
| • | 12.6 percent value creation ratio for full-year 2014, compared with 16.1 percent for 2013. |

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions except per share data)                   | Three months ended December 31, | Twelve months ended December 31, |
|                                                  | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Revenue Data                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|    Earned premiums                     |   | $ | 1,086 |  |   | $ | 1,025 |  |   | 6 |   | $ | 4,243 |  |   | $ | 3,902 |  |   | 9 |
|    Investment income, pretax           |   | 140 |  |   | 137 |  |   | 2 |   | 549 |  |   | 529 |  |   | 4 |
|    Total revenues                      |   | 1,262 |  |   | 1,172 |  |   | 8 |   | 4,945 |  |   | 4,531 |  |   | 9 |
| Income Statement Data                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income                          |   | $ | 167 |  |   | $ | 122 |  |   | 37 |   | $ | 525 |  |   | $ | 517 |  |   | 2 |
|    Realized investment gains, net      |   | 19 |  |   | 3 |  |   | 533 |   | 85 |  |   | 54 |  |   | 57 |
|    Operating income*                   |   | $ | 148 |  |   | $ | 119 |  |   | 24 |   | $ | 440 |  |   | $ | 463 |  |   | (5) |
| Per Share Data (diluted)                              |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income                          |   | $ | 1.02 |  |   | $ | 0.74 |  |   | 38 |   | $ | 3.18 |  |   | $ | 3.12 |  |   | 2 |
|    Realized investment gains, net      |   | 0.13 |  |   | 0.02 |  |   | 550 |   | 0.52 |  |   | 0.32 |  |   | 63 |
|    Operating income*                   |   | $ | 0.89 |  |   | $ | 0.72 |  |   | 24 |   | $ | 2.66 |  |   | $ | 2.80 |  |   | (5) |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|    Book value                          |   |   |   |   |   |   |   | $ | 40.14 |  |   | $ | 37.21 |  |   | 8 |
|    Cash dividend declared              |   | $ | 0.44 |  |   | $ | 0.42 |  |   | 5 |   | $ | 1.76 |  |   | $ | 1.655 |  |   | 6 |
|    Weighted average shares outstanding |   | 165.3 |  |   | 165.7 |  |   | 0 |   | 165.1 |  |   | 165.4 |  |   | 0 |

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

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

----

|         |                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 90.4 percent fourth-quarter 2014 property casualty combined ratio, improved from 93.9 percent for fourth-quarter 2013. Full-year 2014 property casualty combined ratio at 95.6%, with net written premiums up 6 percent. |

|         |                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------|
| • | 9 percent increase in fourth-quarter net written premiums, reflecting higher pricing and growth initiatives. |

|         |                                                                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $122 million fourth-quarter 2014 property casualty new business written premiums. Agencies appointed since the beginning of 2013 contributed $10 million or 8 percent to total fourth-quarter new business written premiums. |

|         |                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------|
| • | 6 cents per share contribution from life insurance operating income to fourth-quarter results, matching a year ago. |

|         |                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------|
| • | 2 percent or $3 million rise in fourth-quarter 2014 pretax investment income, including a 6 percent increase in stock portfolio dividends. |

|         |                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 7 percent full-year rise in fair value of invested assets plus cash at December 31, 2014, including an 11 percent increase for the stock portfolio and a 4 percent increase for the bond portfolio. |

|         |                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------|
| • | $1.784 billion parent company cash and marketable securities at year-end 2014, up 16 percent from a year ago. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                                 | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                                          |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Earned premiums                                                                               |   | $ | 1,035 |  |   | $ | 960 |  |   | 8 |   | $ | 4,045 |  |   | $ | 3,713 |  |   | 9 |
| Fee revenues                                                                                  |   | 1 |  |   | 1 |  |   | 0 |   | 6 |  |   | 4 |  |   | 50 |
|    Total revenues                                                              |   | 1,036 |  |   | 961 |  |   | 8 |   | 4,051 |  |   | 3,717 |  |   | 9 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 622 |  |   | 601 |  |   | 3 |   | 2,627 |  |   | 2,301 |  |   | 14 |
| Underwriting expenses                                                                         |   | 314 |  |   | 300 |  |   | 5 |   | 1,238 |  |   | 1,183 |  |   | 5 |
|    Underwriting profit                                                         |   | $ | 100 |  |   | $ | 60 |  |   | 67 |   | $ | 186 |  |   | $ | 233 |  |   | (20) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 60.1 |  % |   | 62.6 |  % |   | (2.5) |   | 65.0 |  % |   | 61.9 |  % |   | 3.1 |
|      Underwriting expenses                                           |   | 30.3 |  |   | 31.3 |  |   | (1.0) |   | 30.6 |  |   | 31.9 |  |   | (1.3) |
|            Combined ratio              |   | 90.4 |  % |   | 93.9 |  % |   | (3.5) |   | 95.6 |  % |   | 93.8 |  % |   | 1.8 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 906 |  |   | $ | 854 |  |   | 6 |   | $ | 3,794 |  |   | $ | 3,493 |  |   | 9 |
| Agency new business written premiums                                                          |   | 122 |  |   | 128 |  |   | (5) |   | 503 |  |   | 543 |  |   | (7) |
| Other written premiums                                                                        |   | (41 | ) |   | (74 | ) |   | 45 |   | (154 | ) |   | (143 | ) |   | (8) |
|    Net written premiums                                                        |   | $ | 987 |  |   | $ | 908 |  |   | 9 |   | $ | 4,143 |  |   | $ | 3,893 |  |   | 6 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 58.3 |  % |   | 59.9 |  % |   | (1.6) |   | 61.7 |  % |   | 60.6 |  % |   | 1.1 |
|      Current accident year catastrophe losses                        |   | (0.2 | ) |   | 3.5 |  |   | (3.7) |   | 5.7 |  |   | 5.4 |  |   | 0.3 |
|      Prior accident years before catastrophe losses                  |   | 2.7 |  |   | (0.5 | ) |   | 3.2 |   | (1.8 | ) |   | (3.3 | ) |   | 1.5 |
|      Prior accident years catastrophe losses                         |   | (0.7 | ) |   | (0.3 | ) |   | (0.4) |   | (0.6 | ) |   | (0.8 | ) |   | 0.2 |
|            Loss and loss expense ratio |   | 60.1 |  % |   | 62.6 |  % |   | (2.5) |   | 65.0 |  % |   | 61.9 |  % |   | 3.1 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|   catastrophe losses                                                                |   | 88.6 |  % |   | 91.2 |  % |   | (2.6) |   | 92.3 |  % |   | 92.5 |  % |   | (0.2) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 9 percent and 6 percent growth in fourth-quarter and full-year 2014 property casualty net written premiums. Full‐year renewal written premiums increase of 9 percent reflects higher pricing, rising insured exposures and multi-year compounding effects of premium growth initiatives. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 5 percent and 7 percent lower fourth-quarter and full-year 2014 new business premiums written by agencies, compared with a year ago – when full-year 2013 was at a record high. Key factors affecting the 2014 decrease included disciplined pricing and the impact of underwriting profitability initiatives, partially offset by contributions from new agency appointments and other growth initiatives. Full-year 2014 new business premiums, down $40 million in total, included a $20 million increase from standard market property casualty production from agencies appointed since the beginning of 2013 and an increase of $9 million for excess and surplus lines. |

|         |                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 1,466 agency relationships in 1,884 reporting locations marketing standard market property casualty insurance products at December 31, 2014, compared with 1,450 agency relationships in 1,823 reporting locations at year‐end 2013. During 2014, 99 new agency appointments were made as planned. |

|         |                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 3.5 percentage-point fourth-quarter 2014 combined ratio improvement, compared with a year ago, driven by a 4.1 point decrease for lower losses from natural catastrophes. |

|         |                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 1.8 percentage-point rise in full-year 2014 combined ratio, compared with 2013, including 0.5 points from higher natural catastrophe losses, 1.0 point from higher noncatastrophe weather-related losses and 1.5 points from higher estimates of incurred but not reported (IBNR) losses and loss expenses for our commercial casualty line of business. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 2.0 percentage-point fourth-quarter unfavorable effect and 2.4 points full-year 2014 favorable effect from prior accident year reserve development of $22 million and $98 million, compared with 0.8 points and 4.1 points favorable effects from $8 million and $148 million of development for the same periods of 2013. The less favorable fourth-quarter and full-year reserve development was primarily due to higher estimates of IBNR losses and loss expenses for our commercial casualty line of business. |

----

|         |                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 1.1 percentage-point increase, to 61.7 percent, for the full-year 2014 ratio of current accident year losses and loss expenses before catastrophes, largely due to a 1.0 percentage-point rise in the ratio for noncatastrophe weather-related losses. |

|         |                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 1.0 and 1.3 percentage-point improvement in the fourth-quarter and full-year underwriting expense ratios, largely due to higher earned premiums and ongoing expense management efforts. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                                 | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                                          |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Earned premiums                                                                               |   | $ | 730 |  |   | $ | 680 |  |   | 7 |   | $ | 2,856 |  |   | $ | 2,636 |  |   | 8 |
| Fee revenues                                                                                  |   | 1 |  |   | 1 |  |   | 0 |   | 4 |  |   | 3 |  |   | 33 |
|    Total revenues                                                              |   | 731 |  |   | 681 |  |   | 7 |   | 2,860 |  |   | 2,639 |  |   | 8 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 454 |  |   | 411 |  |   | 10 |   | 1,812 |  |   | 1,596 |  |   | 14 |
| Underwriting expenses                                                                         |   | 228 |  |   | 219 |  |   | 4 |   | 902 |  |   | 857 |  |   | 5 |
|    Underwriting profit                                                         |   | $ | 49 |  |   | $ | 51 |  |   | (4) |   | $ | 146 |  |   | $ | 186 |  |   | (22) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 62.3 |  % |   | 60.4 |  % |   | 1.9 |   | 63.5 |  % |   | 60.5 |  % |   | 3.0 |
|      Underwriting expenses                                           |   | 31.3 |  |   | 32.3 |  |   | (1.0) |   | 31.6 |  |   | 32.5 |  |   | (0.9) |
|            Combined ratio              |   | 93.6 |  % |   | 92.7 |  % |   | 0.9 |   | 95.1 |  % |   | 93.0 |  % |   | 2.1 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 645 |  |   | $ | 606 |  |   | 6 |   | $ | 2,678 |  |   | $ | 2,471 |  |   | 8 |
| Agency new business written premiums                                                          |   | 86 |  |   | 92 |  |   | (7) |   | 360 |  |   | 391 |  |   | (8) |
| Other written premiums                                                                        |   | (32 | ) |   | (63 | ) |   | 49 |   | (116 | ) |   | (102 | ) |   | (14) |
|    Net written premiums                                                        |   | $ | 699 |  |   | $ | 635 |  |   | 10 |   | $ | 2,922 |  |   | $ | 2,760 |  |   | 6 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 58.9 |  % |   | 58.8 |  % |   | 0.1 |   | 60.7 |  % |   | 59.8 |  % |   | 0.9 |
|      Current accident year catastrophe losses                        |   | (0.1 | ) |   | 2.3 |  |   | (2.4) |   | 4.8 |  |   | 4.3 |  |   | 0.5 |
|      Prior accident years before catastrophe losses                  |   | 4.4 |  |   | (0.1 | ) |   | 4.5 |   | (1.5 | ) |   | (3.0 | ) |   | 1.5 |
|      Prior accident years catastrophe losses                         |   | (0.9 | ) |   | (0.6 | ) |   | (0.3) |   | (0.5 | ) |   | (0.6 | ) |   | 0.1 |
|            Loss and loss expense ratio |   | 62.3 |  % |   | 60.4 |  % |   | 1.9 |   | 63.5 |  % |   | 60.5 |  % |   | 3.0 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|   catastrophe losses                                                                |   | 90.2 |  % |   | 91.1 |  % |   | (0.9) |   | 92.3 |  % |   | 92.3 |  % |   | 0.0 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 10 percent and 6 percent growth in fourth-quarter and full-year 2014 commercial lines net written premiums, primarily due to higher renewal written premiums that included the effects of higher pricing and rising insured exposures. |

|         |                                                                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $39 million and $207 million increase in fourth-quarter and full-year renewal written premiums, with fourth-quarter and full-year 2014 commercial lines pricing changes that increased on average in a low-single-digit range. |

|         |                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $31 million or 8 percent lower full-year 2014 new business written by agencies, down from a record-high amount a year ago and reflecting an $18 million decrease for our workers’ compensation line of business. |

|         |                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.9 percentage-point rise in fourth-quarter 2014 combined ratio, driven by 8.5 points from estimates of IBNR losses and loss expenses. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 2.1 percentage-point rise in the full-year 2014 combined ratio, including 0.6 points from higher natural catastrophe losses, 1.0 point from noncatastrophe weather-related losses and 4.2 points from higher incurred losses and loss expenses for our largest commercial line of business, commercial casualty. That line, while profitable for the year 2014, experienced ratio increases of 1.6 points for paid losses and loss expenses for accident years three or more years ago in aggregate and 6.2 points for estimates of IBNR losses and loss expenses for all accident years in aggregate. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 3.5 percentage-point fourth-quarter unfavorable effect and 2.0 points full-year 2014 favorable effect from prior accident year reserve development of $26 million and $58 million, compared with 0.7 points and 3.6 points favorable effects from $5 million and $96 million of development for the same periods of 2013. The less favorable fourth-quarter and full-year reserve development was primarily due to estimates of IBNR losses and loss expenses for our commercial casualty line of business. |

|         |                                                                                                                                                                                                                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.9 percentage-point increase, to 60.7 percent, for the full-year 2014 ratio of current accident year losses and loss expenses before catastrophes, largely due to a 1.0 point rise in the ratio for noncatastrophe weather-related losses and a 0.3 point increase in the ratio for current accident year losses of $1 million or more per claim. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                                 | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                                          |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Earned premiums                                                                               |   | $ | 266 |  |   | $ | 249 |  |   | 7 |   | $ | 1,041 |  |   | $ | 961 |  |   | 8 |
| Fee revenues                                                                                  |   | 0 |  |   | 0 |  |   | 0 |   | 2 |  |   | 1 |  |   | 100 |
|    Total revenues                                                              |   | 266 |  |   | 249 |  |   | 7 |   | 1,043 |  |   | 962 |  |   | 8 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 148 |  |   | 177 |  |   | (16) |   | 740 |  |   | 639 |  |   | 16 |
| Underwriting expenses                                                                         |   | 75 |  |   | 72 |  |   | 4 |   | 293 |  |   | 290 |  |   | 1 |
|    Underwriting profit                                                         |   | $ | 43 |  |   | $ | 0 |  |   | nm |   | $ | 10 |  |   | $ | 33 |  |   | (70) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 55.8 |  % |   | 71.4 | % |   | (15.6) |   | 71.1 |  % |   | 66.6 |  % |   | 4.5 |
|      Underwriting expenses                                           |   | 27.9 |  |   | 28.9 |  |   | (1.0) |   | 28.1 |  |   | 30.2 |  |   | (2.1) |
|            Combined ratio              |   | 83.7 |  % |   | 100.3 | % |   | (16.6) |   | 99.2 |  % |   | 96.8 |  % |   | 2.4 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 233 |  |   | $ | 224 |  |   | 4 |   | $ | 1,005 |  |   | $ | 928 |  |   | 8 |
| Agency new business written premiums                                                          |   | 24 |  |   | 24 |  |   | 0 |   | 92 |  |   | 110 |  |   | (16) |
| Other written premiums                                                                        |   | (8 | ) |   | (9 | ) |   | 11 |   | (29 | ) |   | (33 | ) |   | 12 |
|    Net written premiums                                                        |   | $ | 249 |  |   | $ | 239 |  |   | 4 |   | $ | 1,068 |  |   | $ | 1,005 |  |   | 6 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 56.1 |  % |   | 62.6 | % |   | (6.5) |   | 63.4 |  % |   | 61.9 |  % |   | 1.5 |
|      Current accident year catastrophe losses                        |   | (0.9 | ) |   | 7.4 |  |   | (8.3) |   | 8.8 |  |   | 8.8 |  |   | 0.0 |
|      Prior accident years before catastrophe losses                  |   | 1.1 |  |   | 1.1 |  |   | 0.0 |   | (0.1 | ) |   | (3.0 | ) |   | 2.9 |
|      Prior accident years catastrophe losses                         |   | (0.5 | ) |   | 0.3 |  |   | (0.8) |   | (1.0 | ) |   | (1.1 | ) |   | 0.1 |
|            Loss and loss expense ratio |   | 55.8 |  % |   | 71.4 | % |   | (15.6) |   | 71.1 |  % |   | 66.6 |  % |   | 4.5 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|   catastrophe losses                                                                |   | 84.0 |  % |   | 91.5 | % |   | (7.5) |   | 91.5 |  % |   | 92.1 |  % |   | (0.6) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 4 percent and 6 percent growth in fourth-quarter and full-year 2014 personal lines net written premiums, driven by increases in renewal written premiums. |

|         |                                                                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 4 percent increase in full-year 2014 earned premiums in aggregate from our four highest volume states where we offer personal lines policies and that represent approximately half of our personal lines premiums, while rising 13 percent for all other states in aggregate as we progress toward geographic diversification. |

|         |                                                                                                                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 16 percent lower full-year 2014 new business written premium, declining as expected due to underwriting actions such as higher premium rates and expanded use of higher deductibles, age of roof limitations and more precise pricing. |

|         |                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------|
| • | 16.6 percentage-point improvement in fourth-quarter 2014 combined ratio, including 9.1 points from lower natural catastrophe losses. |

|         |                                                                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 2.4 percentage-point rise in the full-year 2014 combined ratio, including 1.4 points from higher noncatastrophe weather-related losses and a 3.0 point rise from less favorable prior accident year reserve development. |

|         |                                                                                                                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.6 percentage-point fourth-quarter unfavorable effect and 1.1 points full-year 2014 favorable effect from prior accident year reserve development of $1 million and $12 million, compared with effects of 1.4 points unfavorable and 4.1 points favorable from $3 million and $39 million of development for the same periods of 2013. |

|         |                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 1.5 percentage-point increase, to 63.4 percent, for the full-year 2014 ratio of current accident year losses and loss expenses before catastrophes, largely due to a 1.4 percentage-point rise in the ratio for noncatastrophe weather-related losses. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                                 | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                                          |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Earned premiums                                                                               |   | $ | 39 |  |   | $ | 31 |  |   | 26 |   | $ | 148 |  |   | $ | 116 |  |   | 28 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 20 |  |   | 13 |  |   | 54 |   | 75 |  |   | 66 |  |   | 14 |
| Underwriting expenses                                                                         |   | 11 |  |   | 9 |  |   | 22 |   | 43 |  |   | 36 |  |   | 19 |
|    Underwriting profit                                                         |   | $ | 8 |  |   | $ | 9 |  |   | (11) |   | $ | 30 |  |   | $ | 14 |  |   | 114 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 49.0 |  % |   | 41.0 |  % |   | 8.0 |   | 50.5 |  % |   | 56.7 |  % |   | (6.2) |
|      Underwriting expenses                                           |   | 28.8 |  |   | 29.4 |  |   | (0.6) |   | 28.9 |  |   | 31.1 |  |   | (2.2) |
|            Combined ratio              |   | 77.8 |  % |   | 70.4 |  % |   | 7.4 |   | 79.4 |  % |   | 87.8 |  % |   | (8.4) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 28 |  |   | $ | 24 |  |   | 17 |   | $ | 111 |  |   | $ | 94 |  |   | 18 |
| Agency new business written premiums                                                          |   | 12 |  |   | 12 |  |   | 0 |   | 51 |  |   | 42 |  |   | 21 |
| Other written premiums                                                                        |   | (1 | ) |   | (2 | ) |   | 50 |   | (9 | ) |   | (8 | ) |   | (13) |
|    Net written premiums                                                        |   | $ | 39 |  |   | $ | 34 |  |   | 15 |   | $ | 153 |  |   | $ | 128 |  |   | 20 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 62.1 |  % |   | 62.6 |  % |   | (0.5) |   | 68.1 |  % |   | 67.1 |  % |   | 1.0 |
|      Current accident year catastrophe losses                        |   | 2.9 |  |   | (1.9 | ) |   | 4.8 |   | 1.8 |  |   | 0.7 |  |   | 1.1 |
|      Prior accident years before catastrophe losses                  |   | (16.1 | ) |   | (19.9 | ) |   | 3.8 |   | (19.6 | ) |   | (11.2 | ) |   | (8.4) |
|      Prior accident years catastrophe losses                         |   | 0.1 |  |   | 0.2 |  |   | (0.1) |   | 0.2 |  |   | 0.1 |  |   | 0.1 |
|            Loss and loss expense ratio |   | 49.0 |  % |   | 41.0 |  % |   | 8.0 |   | 50.5 |  % |   | 56.7 |  % |   | (6.2) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|   catastrophe losses                                                                |   | 90.9 |  % |   | 92.0 |  % |   | (1.1) |   | 97.0 |  % |   | 98.2 |  % |   | (1.2) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 15 percent and 20 percent growth in fourth-quarter and full-year 2014 excess and surplus lines net written premiums, largely due to the opportunity to renew many accounts for the first time. Also contributing to growth were average fourth-quarter and full-year 2014 renewal price increases in a mid-single-digit range. |

|         |                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 21 percent increase in full-year 2014 new business written premiums, rising in part due to enhanced service to agencies provided by a larger staff of excess and surplus lines field marketing representatives. |

|         |                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 8.4 percentage-point combined ratio improvement for full-year 2014, primarily due to a larger benefit from favorable prior accident year reserve development. |

----

|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                    | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                             | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Term life insurance                                                              |   | $ | 32 |  |   | $ | 30 |  |   | 7 |   | $ | 131 |  |   | $ | 122 |  |   | 7 |
| Universal life insurance                                                         |   | 10 |  |   | 27 |  |   | (63) |   | 35 |  |   | 35 |  |   | 0 |
| Other life insurance, annuity, and disability income  products         |   | 9 |  |   | 8 |  |   | 13 |   | 32 |  |   | 32 |  |   | 0 |
|     Earned premiums                                          |   | 51 |  |   | 65 |  |   | (22) |   | 198 |  |   | 189 |  |   | 5 |
| Investment income, net of expenses                                               |   | 36 |  |   | 36 |  |   | 0 |   | 144 |  |   | 140 |  |   | 3 |
| Other income                                                                     |   | 2 |  |   | 1 |  |   | 100 |   | 6 |  |   | 4 |  |   | 50 |
| Total revenues, excluding realized investment gains  and losses        |   | 89 |  |   | 102 |  |   | (13) |   | 348 |  |   | 333 |  |   | 5 |
| Contract holders’ benefits incurred                                        |   | 53 |  |   | 63 |  |   | (16) |   | 229 |  |   | 204 |  |   | 12 |
| Operating expenses incurred                                                      |   | 21 |  |   | 24 |  |   | (13) |   | 63 |  |   | 60 |  |   | 5 |
|     Total benefits and expenses                              |   | 74 |  |   | 87 |  |   | (15) |   | 292 |  |   | 264 |  |   | 11 |
| Net income before income tax and realized  investment gains and losses |   | 15 |  |   | 15 |  |   | 0 |   | 56 |  |   | 69 |  |   | (19) |
| Income tax                                                                       |   | 5 |  |   | 6 |  |   | (17) |   | 20 |  |   | 25 |  |   | (20) |
| Net income before realized investment gains and  losses                |   | $ | 10 |  |   | $ | 9 |  |   | 11 |   | $ | 36 |  |   | $ | 44 |  |   | (18) |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $9 million or 5 percent increase in full-year 2014 earned premiums, including a 7 percent increase for term life insurance, our largest life insurance product line. |

|         |                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $1 million decline to $37 million in full-year 2014 fixed annuity deposits received, slowing as planned. Cincinnati Life does not offer variable or indexed products. |

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | $8 million decrease in full-year 2014 profit, primarily due to less favorable mortality experience. |

|         |                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $72 million or 9 percent full-year 2014 increase to $904 million in GAAP shareholders’ equity for The Cincinnati Life Insurance Company, largely reflecting net income and an increase in the fair value of the fixed-maturity portfolio due to a decrease in interest rates. |

----

|                                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------|
|                                                                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                                                      |   | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                                                               | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Investment income, net of expenses                                                                                 |   | $ | 140 |  |   | $ | 137 |  |   | 2 |   | $ | 549 |  |   | $ | 529 |  |   | 4 |
| Investment interest credited to contract holders                                                                   |   | (21 | ) |   | (20 | ) |   | (5) |   | (83 | ) |   | (80 | ) |   | (4) |
| Realized investment gains, net                                                                                     |   | 32 |  |   | 6 |  |   | 433 |   | 133 |  |   | 83 |  |   | 60 |
| Investment operations profit, pretax                                                                               |   | $ | 151 |  |   | $ | 123 |  |   | 23 |   | $ | 599 |  |   | $ | 532 |  |   | 13 |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment income:                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest                                                                                         |   | $ | 105 |  |   | $ | 104 |  |   | 1 |   | $ | 417 |  |   | $ | 413 |  |   | 1 |
|    Dividends                                                                                        |   | 37 |  |   | 35 |  |   | 6 |   | 138 |  |   | 122 |  |   | 13 |
|    Other                                                                                            |   | — |  |   | 1 |  |   | (100) |   | 2 |  |   | 3 |  |   | (33) |
|    Less investment expenses                                                                         |   | 2 |  |   | 3 |  |   | 0 |   | 8 |  |   | 9 |  |   | (11) |
|       Total investment income, net of expenses, pretax                               |   | 140 |  |   | 137 |  |   | 2 |   | 549 |  |   | 529 |  |   | 4 |
|       Less income taxes                                                              |   | 33 |  |   | 33 |  |   | 0 |   | 130 |  |   | 128 |  |   | 2 |
| Investment income, net of expenses, after-tax                                                                      |   | $ | 107 |  |   | $ | 104 |  |   | 3 |   | $ | 419 |  |   | $ | 401 |  |   | 4 |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|    Investment returns:                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|       Effective tax rate                                                             |   | 23.6 | % |   | 23.9 | % |   |   |   | 23.7 | % |   | 24.1 | % |   |   |
|     Average invested assets plus cash and cash       equivalents |   | $ | 14,229 |  |   | $ | 13,289 |  |   |   |   | $ | 13,951 |  |   | $ | 12,832 |  |   |   |
|       Average yield pretax                                                           |   | 3.94 | % |   | 4.12 | % |   |   |   | 3.94 | % |   | 4.12 | % |   |   |
|       Average yield after-tax                                                        |   | 3.01 |  |   | 3.13 |  |   |   |   | 3.00 |  |   | 3.13 |  |   |   |
|    Fixed-maturity returns:                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Effective tax rate                                                                                                 |   | 27.0 | % |   | 27.2 | % |   |   |   | 27.0 | % |   | 27.1 | % |   |   |
| Average amortized cost                                                                                             |   | $ | 8,898 |  |   | $ | 8,570 |  |   |   |   | $ | 8,755 |  |   | $ | 8,430 |  |   |   |
| Average yield pretax                                                                                               |   | 4.72 | % |   | 4.85 | % |   |   |   | 4.76 | % |   | 4.90 | % |   |   |
| Average yield after-tax                                                                                            |   | 3.45 |  |   | 3.53 |  |   |   |   | 3.48 |  |   | 3.57 |  |   |   |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $3 million or 2 percent rise in fourth-quarter 2014 investment income, including 6 percent growth in equity portfolio dividends and 1 percent growth in interest income. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $152 million or 6 percent fourth-quarter 2014 net increase in pretax net unrealized investment portfolio gains, including a $161 million increase for the equity portfolio. The total increase included the offsetting effect of $53 million of pretax net realized gains from investment portfolio security sales or called bonds during the fourth quarter of 2014, including $43 million from the equity portfolio. |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |
| (In millions except per share data)           |   | At December 31, |   | At December 31, |
|                                          | 2014 |   | 2013 |
| Balance sheet data:                           |   |   |   |   |
|    Invested assets             |   | $ | 14,386 |  |   | $ | 13,564 |  |
|    Total assets                |   | 18,753 |  |   | 17,662 |  |
|    Short-term debt             |   | 49 |  |   | 104 |  |
|    Long-term debt              |   | 791 |  |   | 790 |  |
|    Shareholders’ equity  |   | 6,573 |  |   | 6,070 |  |
|    Book value per share        |   | 40.14 |  |   | 37.21 |  |
|    Debt-to-total-capital ratio |   | 11.3 | % |   | 12.8 | % |

|         |                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------|
| • | $14.977 billion in consolidated cash and invested assets at December 31, 2014, up 7 percent from $13.997 billion at year-end 2013. |

|         |                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $9.460 billion bond portfolio at December 31, 2014, with an average rating of A2/A. Fair value decreased $62 million or 1 percent during the fourth quarter of 2014. |

|         |                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $4.858 billion equity portfolio was 33.8 percent of invested assets, including $2.130 billion in pretax net unrealized gains at December 31, 2014. $192 million or 4 percent fourth-quarter 2014 growth in fair value. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $4.472 billion of statutory surplus for the property casualty insurance group at December 31, 2014, up $146 million from $4.326 billion at year-end 2013, after declaring $400 million in dividends to the parent company. The ratio of net written premiums to property casualty statutory surplus for the 12 months ended December 31, 2014, was 0.9-to-1, unchanged from year-end 2013. |

|         |                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Value creation ratio of 12.6 percent for full-year 2014 included 7.2 percent from net income before net realized investment gains and 5.5 percent from investment portfolio realized gains and changes in unrealized gains. |

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

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

|         |                                                                            |
|---------|----------------------------------------------------------------------------|
| • | Inadequate estimates or assumptions used for critical accounting estimates |

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

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

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

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

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

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

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

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

----

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

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

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

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

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

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

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

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

|         |                                                                   |
|---------|-------------------------------------------------------------------|
| ◦ | Downgrades of the company’s financial strength ratings |

|         |                                                                     |
|---------|---------------------------------------------------------------------|
| ◦ | Concerns that doing business with the company is too difficult |

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

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

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

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

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

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

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

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

|         |                             |
|---------|-----------------------------|
| ◦ | Increase our other expenses |

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

|         |                                               |
|---------|-----------------------------------------------|
| ◦ | Place us at a disadvantage in the marketplace |

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

|         |                                                                     |
|---------|---------------------------------------------------------------------|
| • | Adverse outcomes from litigation or administrative proceedings |

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

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

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

----

|                                                                                                                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                       |  |  |  |  |  |  |  |  |
| (In millions except per share data)                                                                                                                                                                   |   | December 31, |   | December 31, |
|                                                                                                                                                                                                  |   | 2014 |   | 2013 |
| Assets                                                                                                                                                                                                |   |   |  |   |   |  |
|   Investments                                                                                                                                                                               |   |   |  |   |   |  |
|     Fixed maturities, at fair value (amortized cost: 2014—$8,871; 2013—$8,638)                                                                                        |   | $ | 9,460 |  |   | $ | 9,121 |  |
|     Equity securities, at fair value (cost: 2014—$2,728; 2013—$2,523)                                                                                                 |   | 4,858 |  |   | 4,375 |  |
|     Other invested assets                                                                                                                                                         |   | 68 |  |   | 68 |  |
|       Total investments                                                                                                                                                 |   | 14,386 |  |   | 13,564 |  |
|   Cash and cash equivalents                                                                                                                                                                 |   | 591 |  |   | 433 |  |
|   Investment income receivable                                                                                                                                                              |   | 123 |  |   | 121 |  |
|   Finance receivable                                                                                                                                                                        |   | 75 |  |   | 85 |  |
|   Premiums receivable                                                                                                                                                                       |   | 1,405 |  |   | 1,346 |  |
|   Reinsurance recoverable                                                                                                                                                                   |   | 545 |  |   | 547 |  |
|   Prepaid reinsurance premiums                                                                                                                                                              |   | 29 |  |   | 26 |  |
|   Deferred policy acquisition costs                                                                                                                                                         |   | 578 |  |   | 565 |  |
|   Land, building and equipment, net, for company use (accumulated depreciation:     2014—$446; 2013—$420)                                              |   | 194 |  |   | 210 |  |
|   Other assets                                                                                                                                                                              |   | 75 |  |   | 73 |  |
|   Separate accounts                                                                                                                                                                         |   | 752 |  |   | 692 |  |
|     Total assets                                                                                                                                                                  |   | $ | 18,753 |  |   | $ | 17,662 |  |
| Liabilities                                                                                                                                                                                           |   |   |  |   |   |  |
|   Insurance reserves                                                                                                                                                                        |   |   |  |   |   |  |
|     Loss and loss expense reserves                                                                                                                                                |   | $ | 4,485 |  |   | $ | 4,311 |  |
|     Life policy and investment contract reserves                                                                                                                                  |   | 2,497 |  |   | 2,390 |  |
|   Unearned premiums                                                                                                                                                                         |   | 2,082 |  |   | 1,976 |  |
|   Other liabilities                                                                                                                                                                         |   | 648 |  |   | 611 |  |
|   Deferred income tax                                                                                                                                                                       |   | 840 |  |   | 673 |  |
|   Note payable                                                                                                                                                                              |   | 49 |  |   | 104 |  |
|   Long-term debt and capital lease obligations                                                                                                                                              |   | 827 |  |   | 835 |  |
|   Separate accounts                                                                                                                                                                         |   | 752 |  |   | 692 |  |
|     Total liabilities                                                                                                                                                             |   | 12,180 |  |   | 11,592 |  |
|                                                                                                                                                                                                  |   |   |   |   |
| Shareholders' Equity                                                                                                                                                                                  |   |   |  |   |   |  |
|   Common stock, par value—$2 per share; (authorized: 2014 and 2013—500 million shares;    issued and outstanding: 2014 and 2013—198.3 million shares) |   | 397 |  |   | 397 |  |
| Paid-in capital                                                                                                                                                                                       |   | 1,214 |  |   | 1,191 |  |
| Retained earnings                                                                                                                                                                                     |   | 4,505 |  |   | 4,268 |  |
| Accumulated other comprehensive income                                                                                                                                                                |   | 1,744 |  |   | 1,504 |  |
| Treasury stock at cost (2014—34.6 million share and 2013—35.2 million shares)                                                                                                             |   | (1,287 | ) |   | (1,290 | ) |
| Total shareholders' equity                                                                                                                                                                            |   | 6,573 |  |   | 6,070 |  |
| Total liabilities and shareholders' equity                                                                                                                                                            |   | $ | 18,753 |  |   | $ | 17,662 |  |

----

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                 |   |   |   |   |   |   |   |
| (In millions except per share data)                                  | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                 | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Revenues                                                             |   |   |   |   |   |   |   |
|    Earned premiums                                    | $ | 1,086 |  |   | $ | 1,025 |  |   | $ | 4,243 |  |   | $ | 3,902 |  |
|    Investment income, net of expenses                 | 140 |  |   | 137 |  |   | 549 |  |   | 529 |  |
|    Realized investment gains, net                     | 32 |  |   | 6 |  |   | 133 |  |   | 83 |  |
|    Fee revenues                                       | 3 |  |   | 2 |  |   | 12 |  |   | 8 |  |
|    Other revenues                                     | 1 |  |   | 2 |  |   | 8 |  |   | 9 |  |
|       Total revenues                   | 1,262 |  |   | 1,172 |  |   | 4,945 |  |   | 4,531 |  |
|                                                                 |   |   |   |   |   |   |   |
| Benefits and Expenses                                                |   |   |   |   |   |   |   |
|    Insurance losses and policyholder benefits         | 675 |  |   | 664 |  |   | 2,856 |  |   | 2,505 |  |
|    Underwriting, acquisition and insurance expenses   | 334 |  |   | 324 |  |   | 1,301 |  |   | 1,243 |  |
|    Interest expense                                   | 13 |  |   | 14 |  |   | 53 |  |   | 54 |  |
|    Other operating expenses                           | 4 |  |   | 3 |  |   | 14 |  |   | 15 |  |
|       Total benefits and expenses      | 1,026 |  |   | 1,005 |  |   | 4,224 |  |   | 3,817 |  |
|                                                                 |   |   |   |   |   |   |   |
| Income Before Income Taxes                                           | 236 |  |   | 167 |  |   | 721 |  |   | 714 |  |
|                                                                 |   |   |   |   |   |   |   |
| Provision for Income Taxes                                           |   |   |   |   |   |   |   |
|    Current                                            | 53 |  |   | 41 |  |   | 159 |  |   | 178 |  |
|    Deferred                                           | 16 |  |   | 4 |  |   | 37 |  |   | 19 |  |
|       Total provision for income taxes | 69 |  |   | 45 |  |   | 196 |  |   | 197 |  |
|                                                                 |   |   |   |   |   |   |   |
| Net Income                                                           | $ | 167 |  |   | $ | 122 |  |   | $ | 525 |  |   | $ | 517 |  |
|                                                                 |   |   |   |   |   |   |   |
| Per Common Share                                                     |   |   |   |   |   |   |   |
|    Net income—basic                             | $ | 1.03 |  |   | $ | 0.75 |  |   | $ | 3.21 |  |   | $ | 3.16 |  |
|    Net income—diluted                           | 1.02 |  |   | 0.74 |  |   | 3.18 |  |   | 3.12 |  |

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

----

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

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

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

----

|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars are per outstanding share)                                              |   | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                             | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Value creation ratio:                                                            |   |   |   |   |   |   |   |   |
|    End of period book value                                       |   | $ | 40.14 |  |   | $ | 37.21 |  |   | $ | 40.14 |  |   | $ | 37.21 |  |
|    Less beginning of period book value                            |   | 39.01 |  |   | 35.51 |  |   | 37.21 |  |   | 33.48 |  |
|    Change in book value                                           |   | 1.13 |  |   | 1.70 |  |   | 2.93 |  |   | 3.73 |  |
|    Dividend declared to shareholders                              |   | 0.44 |  |   | 0.42 |  |   | 1.76 |  |   | 1.655 |  |
|    Total contribution to value creation ratio                     |   | $ | 1.57 |  |   | $ | 2.12 |  |   | $ | 4.69 |  |   | $ | 5.385 |  |
|                                                                             |   |   |   |   |   |   |   |   |
| Contribution to value creation ratio:                                            |   |   |   |   |   |   |   |   |
| From change in book value*                                                       |   | 2.9 | % |   | 4.8 | % |   | 7.9 | % |   | 11.1 | % |
| From dividends declared to shareholders**                                        | 1.1 |  |   | 1.2 |  |   | 4.7 |  |   | 5.0 |  |
| Value creation ratio                                                             |   | 4.0 | % |   | 6.0 | % |   | 12.6 | % |   | 16.1 | % |
|                                                                             |   |   |   |   |   |   |   |   |
| *    Change in book value divided by the beginning of period book value          |   |   |
| **   Dividend declared to shareholders divided by beginning of period book value |   |   |

|                                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------|
|                                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Net Income Reconciliation                                                                                      |
|                                                                                                                 |
| (In millions except per share data)                                                                                  |   | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                                                                 |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
|    Net income                                                                                         |   | $ | 167 |  |   | $ | 122 |  |   | $ | 525 |  |   | $ | 517 |  |
|    Realized investment gains, net                                                                     |   | 19 |  |   | 3 |  |   | 85 |  |   | 54 |  |
|    Operating income                                                                                   |   | 148 |  |   | 119 |  |   | 440 |  |   | 463 |  |
|    Less catastrophe losses                                                                            |   | 6 |  |   | (20 | ) |   | (133 | ) |   | (112 | ) |
|    Operating income before catastrophe losses                                                         |   | 142 |  |   | 139 |  |   | 573 |  |   | 575 |  |
|    Less noncatastrophe weather losses                                                                 |   | (11 | ) |   | (10 | ) |   | (109 | ) |   | (75 | ) |
|    Operating income before catastrophe and noncatastrophe     weather losses |   | $ | 153 |  |   | $ | 149 |  |   | $ | 682 |  |   | $ | 650 |  |
|                                                                                                                 |   |   |   |   |   |   |   |   |
| Diluted per share data:                                                                                              |   |   |   |   |   |   |   |   |
|    Net income                                                                                         |   | $ | 1.02 |  |   | $ | 0.74 |  |   | $ | 3.18 |  |   | $ | 3.12 |  |
|    Realized investment gains, net                                                                     |   | 0.13 |  |   | 0.02 |  |   | 0.52 |  |   | 0.32 |  |
|    Operating income                                                                                   |   | 0.89 |  |   | 0.72 |  |   | 2.66 |  |   | 2.80 |  |
|    Less catastrophe losses                                                                            |   | 0.04 |  |   | (0.12 | ) |   | (0.81 | ) |   | (0.67 | ) |
|    Operating income before catastrophe losses                                                         |   | 0.85 |  |   | 0.84 |  |   | 3.47 |  |   | 3.47 |  |
|    Less noncatastrophe weather losses                                                                 |   | (0.07 | ) |   | (0.06 | ) |   | (0.66 | ) |   | (0.45 | ) |
|    Operating income before catastrophe and noncatastrophe     weather losses |   | $ | 0.92 |  |   | $ | 0.90 |  |   | $ | 4.13 |  |   | $ | 3.92 |  |
|                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |

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|                                                                                                                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Property Casualty Operations Reconciliation                                                                                                             |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| (In millions)                                                                                                                                           | Three months ended December 31, 2014 |
|                                                                                                                                                    | Consolidated | Commercial | Personal | E&S |
| Premiums:                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|    Written premiums                                                                                                                      |   | $ | 987 |  |   |   | $ | 699 |  |   |   | $ | 249 |  |   |   | $ | 39 |  |   |
|    Unearned premiums change                                                                                                              |   | 48 |  |   |   | 31 |  |   |   | 17 |  |   |   | 0 |  |   |
|    Earned premiums                                                                                                                       |   | $ | 1,035 |  |   |   | $ | 730 |  |   |   | $ | 266 |  |   |   | $ | 39 |  |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Statutory ratios:                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|    Combined ratio                                                                                                                        |   | 91.8 |  % |   |   | 94.8 |  % |   |   | 85.1 |  % |   |   | 80.4 |  % |   |
|    Contribution from catastrophe losses                                                                                                  |   | (0.9 | ) |   |   | (1.0 | ) |   |   | (1.4 | ) |   |   | 3.0 |  |   |
|    Combined ratio excluding catastrophe losses                                                                                           |   | 92.7 |  % |   |   | 95.8 |  % |   |   | 86.5 |  % |   |   | 77.4 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commission expense ratio                                                                                                              |   | 19.2 |  % |   |   | 18.9 |  % |   |   | 19.0 |  % |   |   | 26.6 |  % |   |
|    Other underwriting expense ratio                                                                                                      |   | 12.5 |  |   |   | 13.6 |  |   |   | 10.3 |  |   |   | 4.8 |  |   |
|    Total expense ratio                                                                                                                   |   | 31.7 |  % |   |   | 32.5 |  % |   |   | 29.3 |  % |   |   | 31.4 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| GAAP ratios:                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Combined ratio                                                                                                                        |   | 90.4 |  % |   |   | 93.6 |  % |   |   | 83.7 |  % |   |   | 77.8 |  % |   |
|    Contribution from catastrophe losses                                                                                                  |   | (0.9 | ) |   |   | (1.0 | ) |   |   | (1.4 | ) |   |   | 3.0 |  |   |
|    Prior accident years before catastrophe losses                                                                                        |   | 2.7 |  |   |   | 4.4 |  |   |   | 1.1 |  |   |   | (16.1 | ) |   |
|    Current accident year combined ratio before catastrophe losses                                                                        |   | 88.6 |  % |   |   | 90.2 |  % |   |   | 84.0 |  % |   |   | 90.9 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| (In millions)                                                                                                                                           | Twelve months ended December 31, 2014 |
|                                                                                                                                                    | Consolidated | Commercial | Personal | E&S |
| Premiums:                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|    Written premiums                                                                                                                      |   | $ | 4,143 |  |   |   | $ | 2,922 |  |   |   | $ | 1,068 |  |   |   | $ | 153 |  |   |
|    Unearned premiums change                                                                                                              |   | (98 | ) |   |   | (66 | ) |   |   | (27 | ) |   |   | (5 | ) |   |
|    Earned premiums                                                                                                                       |   | $ | 4,045 |  |   |   | $ | 2,856 |  |   |   | $ | 1,041 |  |   |   | $ | 148 |  |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Statutory ratios:                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|    Combined ratio                                                                                                                        |   | 95.1 |  % |   |   | 94.3 |  % |   |   | 99.1 |  % |   |   | 81.8 |  % |   |
|    Contribution from catastrophe losses                                                                                                  |   | 5.1 |  |   |   | 4.3 |  |   |   | 7.8 |  |   |   | 2.0 |  |   |
|    Combined ratio excluding catastrophe losses                                                                                           |   | 90.0 |  % |   |   | 90.0 |  % |   |   | 91.3 |  % |   |   | 79.8 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commission expense ratio                                                                                                              |   | 18.4 |  % |   |   | 18.0 |  % |   |   | 18.3 |  % |   |   | 27.0 |  % |   |
|    Other underwriting expense ratio                                                                                                      |   | 11.7 |  |   |   | 12.8 |  |   |   | 9.7 |  |   |   | 4.3 |  |   |
|    Total expense ratio                                                                                                                   |   | 30.1 |  % |   |   | 30.8 |  % |   |   | 28.0 |  % |   |   | 31.3 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| GAAP ratios:                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Combined ratio                                                                                                                        |   | 95.6 |  % |   |   | 95.1 |  % |   |   | 99.2 |  % |   |   | 79.4 |  % |   |
|    Contribution from catastrophe losses                                                                                                  |   | 5.1 |  |   |   | 4.3 |  |   |   | 7.8 |  |   |   | 2.0 |  |   |
|    Prior accident years before catastrophe losses                                                                                        |   | (1.8 | ) |   |   | (1.5 | ) |   |   | (0.1 | ) |   |   | (19.6 | ) |   |
|    Current accident year combined ratio before catastrophe losses                                                                        |   | 92.3 |  % |   |   | 92.3 |  % |   |   | 91.5 |  % |   |   | 97.0 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.  Ratios are calculated based on dollar amounts in thousands. |