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

----

|                                                                                                     |
|-----------------------------------------------------------------------------------------------------|
|                                                                                                     |  |
| Part I – Financial Information                                                                | 3 |
|                                                                                                |   |
| Item 1. Financial Statements (unaudited)                                                            | 3 |
|                                                                                                |   |
| Condensed Consolidated Balance Sheets                                                               | 3 |
|                                                                                                |   |
| Condensed Consolidated Statements of Income                                                         | 4 |
|                                                                                                |   |
| Condensed Consolidated Statements of Comprehensive Income                                           | 5 |
|                                                                                                |   |
| Condensed Consolidated Statements of Shareholders’ Equity                                     | 6 |
|                                                                                                |   |
| Condensed Consolidated Statements of Cash Flows                                                     | 7 |
|                                                                                                |   |
| Notes to Condensed Consolidated Financial Statements (unaudited)                                    | 8 |
|                                                                                                |   |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 24 |
|                                                                                                |   |
| Safe Harbor Statement                                                                               | 24 |
|                                                                                                |   |
| Introduction                                                                                        | 26 |
|                                                                                                |   |
| Liquidity and Capital Resources                                                                     | 53 |
|                                                                                                |   |
| Other Matters                                                                                       | 57 |
|                                                                                                |   |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk                             | 57 |
|                                                                                                |   |
| Fixed-Maturity Investments                                                                          | 57 |
|                                                                                                |   |
| Equity Investments                                                                                  | 61 |
|                                                                                                |   |
| Unrealized Investment Gains and Losses                                                              | 62 |
|                                                                                                |   |
| Item 4. Controls and Procedures                                                                     | 65 |
|                                                                                                |   |
| Part II – Other Information                                                                   | 65 |
|                                                                                                |   |
| Item 1. Legal Proceedings                                                                           | 65 |
|                                                                                                |   |
| Item 1A. Risk Factors                                                                               | 65 |
|                                                                                                |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                 | 65 |
|                                                                                                |   |
| Item 3. Defaults upon Senior Securities                                                             | 66 |
|                                                                                                |   |
| Item 4. Mine Safety Disclosures                                                                     | 66 |
|                                                                                                |   |
| Item 5. Other Information                                                                           | 66 |
|                                                                                                |   |
| Item 6. Exhibits                                                                                    | 66 |

----

|                                                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                  |  |  |  |  |  |  |  |  |
| (In millions except per share data)                                                                                                     |   | March 31, |   | December 31, |
|                                                                                                                                                             |   | 2013 |   | 2012 |
| ASSETS                                                                                                                                                           |   |   |  |   |   |  |
| Investments                                                                                                                                                      |   |   |  |   |   |  |
| Fixed maturities, at fair value (amortized cost: 2013—$8,323; 2012—$8,222)                                                                           |   | $ | 9,169 |  |   | $ | 9,093 |  |
| Equity securities, at fair value (cost: 2013—$2,416; 2012—$2,369)                                                                                    |   | 3,801 |  |   | 3,373 |  |
| Other invested assets                                                                                                                                            |   | 67 |  |   | 68 |  |
| Total investments                                                                                                                                                |   | 13,037 |  |   | 12,534 |  |
| Cash and cash equivalents                                                                                                                                        |   | 380 |  |   | 487 |  |
| Investment income receivable                                                                                                                                     |   | 117 |  |   | 115 |  |
| Finance receivable                                                                                                                                               |   | 76 |  |   | 75 |  |
| Premiums receivable                                                                                                                                              |   | 1,291 |  |   | 1,214 |  |
| Reinsurance recoverable                                                                                                                                          |   | 620 |  |   | 615 |  |
| Prepaid reinsurance premiums                                                                                                                                     |   | 26 |  |   | 26 |  |
| Deferred policy acquisition costs                                                                                                                                |   | 491 |  |   | 470 |  |
| Land, building and equipment, net, for company use (accumulated depreciation:     2013—$398; 2012—$397)                                              |   | 216 |  |   | 217 |  |
| Other assets                                                                                                                                                     |   | 57 |  |   | 61 |  |
| Separate accounts                                                                                                                                                |   | 726 |  |   | 734 |  |
| Total assets                                                                                                                                                     |   | $ | 17,037 |  |   | $ | 16,548 |  |
| LIABILITIES                                                                                                                                                      |   |   |  |   |   |  |
| Insurance reserves                                                                                                                                               |   |   |  |   |   |  |
| Loss and loss expense reserves                                                                                                                                   |   | $ | 4,240 |  |   | $ | 4,230 |  |
| Life policy and investment contract reserves                                                                                                                     |   | 2,310 |  |   | 2,295 |  |
| Unearned premiums                                                                                                                                                |   | 1,875 |  |   | 1,792 |  |
| Other liabilities                                                                                                                                                |   | 578 |  |   | 660 |  |
| Deferred income tax                                                                                                                                              |   | 588 |  |   | 453 |  |
| Note payable                                                                                                                                                     |   | 104 |  |   | 104 |  |
| Long-term debt and capital lease obligations                                                                                                                     |   | 831 |  |   | 827 |  |
| Separate accounts                                                                                                                                                |   | 726 |  |   | 734 |  |
| Total liabilities                                                                                                                                                |   | 11,252 |  |   | 11,095 |  |
| Commitments and contingent liabilities (Note 12)                                                                                                                 |   | — |  |   | — |  |
| SHAREHOLDERS' EQUITY                                                                                                                                             |   |   |  |   |   |  |
| Common stock, par value—$2 per share; (authorized: 2013 and 2012—500 million shares; issued and outstanding: 2013 and 2012—197 million shares) |   | 395 |  |   | 394 |  |
| Paid-in capital                                                                                                                                                  |   | 1,146 |  |   | 1,134 |  |
| Retained earnings                                                                                                                                                |   | 4,109 |  |   | 4,021 |  |
| Accumulated other comprehensive income                                                                                                                           |   | 1,362 |  |   | 1,129 |  |
| Treasury stock at cost (2013 and 2012—34 million shares)                                                                                                   |   | (1,227 | ) |   | (1,225 | ) |
| Total shareholders' equity                                                                                                                                       |   | 5,785 |  |   | 5,453 |  |
| Total liabilities and shareholders' equity                                                                                                                       |   | $ | 17,037 |  |   | $ | 16,548 |  |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |
|                                                         |   | Three months ended March 31, |
| (In millions except per share data) |   | 2013 |   | 2012 |
| REVENUES                                                     |   |   |  |   |   |  |
| Earned premiums                                              |   | $ | 931 |  |   | $ | 839 |  |
| Investment income, net of expenses                           |   | 128 |  |   | 131 |  |
| Total realized investment gains, net                         |   | 41 |  |   | 13 |  |
| Fee revenues                                                 |   | 1 |  |   | 1 |  |
| Other revenues                                               |   | 2 |  |   | 2 |  |
| Total revenues                                               |   | 1,103 |  |   | 986 |  |
| BENEFITS AND EXPENSES                                        |   |   |  |   |   |  |
| Insurance losses and policyholder benefits                   |   | 568 |  |   | 582 |  |
| Underwriting, acquisition and insurance expenses             |   | 300 |  |   | 274 |  |
| Interest expense                                             |   | 13 |  |   | 14 |  |
| Other operating expenses                                     |   | 5 |  |   | 4 |  |
|  Total benefits and expenses                            |   | 886 |  |   | 874 |  |
| INCOME BEFORE INCOME TAXES                                   |   | 217 |  |   | 112 |  |
| PROVISION FOR INCOME TAXES                                   |   |   |  |   |   |  |
| Current                                                      |   | 54 |  |   | 20 |  |
| Deferred                                                     |   | 9 |  |   | 6 |  |
| Total provision for income taxes                             |   | 63 |  |   | 26 |  |
| NET INCOME                                                   |   | $ | 154 |  |   | $ | 86 |  |
| PER COMMON SHARE                                             |   |   |  |   |   |  |
| Net income—basic                                       |   | $ | 0.95 |  |   | $ | 0.53 |  |
| Net income—diluted                                     |   | 0.94 |  |   | 0.53 |  |

----

|                                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------|
|                                                                                                                    |  |  |  |  |  |  |  |  |
|                                                                                                               |   | Three months ended March 31, |
| (In millions)                                                                                                 |   | 2013 |   | 2012 |
| NET INCOME                                                                                                         |   | $ | 154 |  |   | $ | 86 |  |
| OTHER COMPREHENSIVE INCOME:                                                                                        |   |   |  |   |   |  |
| Unrealized gains on investments available for sale, net of tax of $124 and $80, respectively                       |   | 232 |  |   | 148 |  |
| Amortization of pension actuarial loss and prior service cost, net of tax of $1 and $1, respectively               |   | 1 |  |   | 1 |  |
| Change in life deferred acquisition costs, life policy reserves and other, net of tax of $0 and ($2), respectively |   | — |  |   | (3 | ) |
| Other comprehensive income, net of tax                                                                             |   | 233 |  |   | 146 |  |
| COMPREHENSIVE INCOME                                                                                               |   | $ | 387 |  |   | $ | 232 |  |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                          |   | Common Stock |   |   |   |   |   | AccumulatedOther |   |   |   | TotalShare- |
| (In millions)                                                                            |   | Outstanding Shares |   | Amount |   | Paid-in Capital |   | Retained Earnings |   | Comprehensive Income |   | Treasury Stock |   | holders' Equity |
| Balance as reported December 31, 2011                                                    |   | 162 |  |   | $ | 393 |  |   | $ | 1,096 |  |   | $ | 3,885 |  |   | $ | 901 |  |   | $ | (1,220 | ) |   | $ | 5,055 |  |
| Cumulative effect of a change in accounting for deferred policy acquisition costs, net of tax |   | — |  |   | — |  |   | — |  |   | (22 | ) |   | — |  |   | — |  |   | (22 | ) |
| Balance as adjusted December 31, 2011                                                    |   | 162 |  |   | 393 |  |   | 1,096 |  |   | 3,863 |  |   | 901 |  |   | (1,220 | ) |   | 5,033 |  |
| Net income                                                                                    |   | — |  |   | — |  |   | — |  |   | 86 |  |   | — |  |   | — |  |   | 86 |  |
| Other comprehensive income, net                                                               |   | — |  |   | — |  |   | — |  |   | — |  |   | 146 |  |   | — |  |   | 146 |  |
| Dividends declared                                                                            |   | — |  |   | — |  |   | — |  |   | (65 | ) |   | — |  |   | — |  |   | (65 | ) |
| Stock-based awards exercised and vested                                                       |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 1 |  |   | 1 |  |
| Stock-based compensation                                                                      |   | — |  |   | — |  |   | 4 |  |   | — |  |   | — |  |   | — |  |   | 4 |  |
| Purchases                                                                                     |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Other                                                                                         |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 2 |  |   | 2 |  |
| Balance March 31, 2012                                                                        |   | 162 |  |   | $ | 393 |  |   | $ | 1,100 |  |   | $ | 3,884 |  |   | $ | 1,047 |  |   | $ | (1,217 | ) |   | $ | 5,207 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance December 31, 2012                                                                |   | 163 |  |   | $ | 394 |  |   | $ | 1,134 |  |   | $ | 4,021 |  |   | $ | 1,129 |  |   | $ | (1,225 | ) |   | $ | 5,453 |  |
| Net income                                                                                    |   | — |  |   | — |  |   | — |  |   | 154 |  |   | — |  |   | — |  |   | 154 |  |
| Other comprehensive income, net                                                               |   | — |  |   | — |  |   | — |  |   | — |  |   | 233 |  |   | — |  |   | 233 |  |
| Dividends declared                                                                            |   | — |  |   | — |  |   | — |  |   | (66 | ) |   | — |  |   | — |  |   | (66 | ) |
| Stock-based awards exercised and vested                                                       |   | — |  |   | 1 |  |   | 7 |  |   | — |  |   | — |  |   | 5 |  |   | 13 |  |
| Stock-based compensation                                                                      |   | — |  |   | — |  |   | 5 |  |   | — |  |   | — |  |   | — |  |   | 5 |  |
| Purchases                                                                                     |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (9 | ) |   | (9 | ) |
| Other                                                                                         |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 2 |  |   | 2 |  |
| Balance March 31, 2013                                                                        |   | 163 |  |   | $ | 395 |  |   | $ | 1,146 |  |   | $ | 4,109 |  |   | $ | 1,362 |  |   | $ | (1,227 | ) |   | $ | 5,785 |  |

----

|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |  |
|                                                                              |   | Nine months endedThree months ended March 31, |
| (In millions)                                                                |   | 2013 |   | 2012 |
| CASH FLOWS FROM OPERATING ACTIVITIES                                              |   |   |  |   |   |  |
| Net income                                                                        |   | $ | 154 |  |   | $ | 86 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |  |   |   |  |
| Depreciation and amortization                                                     |   | 9 |  |   | 11 |  |
| Realized gains on investments, net                                                |   | (41 | ) |   | (13 | ) |
| Stock-based compensation                                                          |   | 5 |  |   | 4 |  |
| Interest credited to contract holders                                             |   | 11 |  |   | 9 |  |
| Deferred income tax expense                                                       |   | 9 |  |   | 6 |  |
| Changes in:                                                                       |   |   |  |   |   |  |
| Investment income receivable                                                      |   | (2 | ) |   | 3 |  |
| Premiums and reinsurance receivable                                               |   | (82 | ) |   | (19 | ) |
| Deferred policy acquisition costs                                                 |   | (19 | ) |   | (14 | ) |
| Other assets                                                                      |   | (2 | ) |   | (5 | ) |
| Loss and loss expense reserves                                                    |   | 10 |  |   | 8 |  |
| Life policy reserves                                                              |   | 13 |  |   | 15 |  |
| Unearned premiums                                                                 |   | 83 |  |   | 47 |  |
| Other liabilities                                                                 |   | (88 | ) |   | (10 | ) |
| Current income tax receivable/payable                                             |   | (3 | ) |   | 20 |  |
| Net cash provided by operating activities                                         |   | 57 |  |   | 148 |  |
| CASH FLOWS FROM INVESTING ACTIVITIES                                              |   |   |  |   |   |  |
| Sale of fixed maturities                                                          |   | 12 |  |   | 6 |  |
| Call or maturity of fixed maturities                                              |   | 221 |  |   | 195 |  |
| Sale of equity securities                                                         |   | 98 |  |   | 99 |  |
| Purchase of fixed maturities                                                      |   | (325 | ) |   | (304 | ) |
| Purchase of equity securities                                                     |   | (108 | ) |   | (96 | ) |
| Investment in buildings and equipment, net                                        |   | (1 | ) |   | (2 | ) |
| Investment in finance receivables                                                 |   | (8 | ) |   | (9 | ) |
| Collection of finance receivables                                                 |   | 7 |  |   | 9 |  |
| Change in other invested assets, net                                              |   | 2 |  |   | 2 |  |
| Net cash used in investing activities                                             |   | (102 | ) |   | (100 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES                                              |   |   |  |   |   |  |
| Payment of cash dividends to shareholders                                         |   | (65 | ) |   | (64 | ) |
| Purchase of treasury shares                                                       |   | — |  |   | — |  |
| Increase in notes payable                                                         |   | — |  |   | — |  |
| Proceeds from stock options exercised                                             |   | 6 |  |   | 1 |  |
| Contract holders' funds deposited                                                 |   | 24 |  |   | 31 |  |
| Contract holders' funds withdrawn                                                 |   | (31 | ) |   | (28 | ) |
| Excess tax benefits on stock-based compensation                                   |   | 8 |  |   | 1 |  |
| Other                                                                             |   | (4 | ) |   | (3 | ) |
| Net cash used in financing activities                                             |   | (62 | ) |   | (62 | ) |
| Net change in cash and cash equivalents                                           |   | (107 | ) |   | (14 | ) |
| Cash and cash equivalents at beginning of year                                    |   | 487 |  |   | 438 |  |
| Cash and cash equivalents at end of period                                        |   | $ | 380 |  |   | $ | 424 |  |
| Supplemental disclosures of cash flow information:                                |   |   |  |   |   |  |
| Interest paid                                                                     |   | $ | — |  |   | $ | — |  |
| Income taxes paid                                                                 |   | 54 |  |   | — |  |
| Non-cash activities:                                                              |   |   |  |   |   |  |
| Conversion of securities                                                          |   | $ | 43 |  |   | $ | 3 |  |
| Equipment acquired under capital lease obligations                                |   | 12 |  |   | 6 |  |
| Cashless exercise of stock options                                                |   | 9 |  |   | — |  |

----

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                |   | Cost or |   |   |   |   |   |   |
|                                              |   | amortized |   | Gross unrealized |   | Fair |
| At March 31, 2013                                 |   | cost |   | gains |   | losses |   | value |
| Fixed maturities:                                 |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political subdivisions |   | $ | 3,006 |  |   | $ | 233 |  |   | $ | 1 |  |   | $ | 3,238 |  |
| Convertibles and bonds with warrants attached     |   | 27 |  |   | — |  |   | — |  |   | 27 |  |
| United States government                          |   | 7 |  |   | 1 |  |   | — |  |   | 8 |  |
| Government-sponsored enterprises                  |   | 168 |  |   | — |  |   | 1 |  |   | 167 |  |
| Foreign government                                |   | 13 |  |   | — |  |   | — |  |   | 13 |  |
| Commercial mortgage-backed securities             |   | 38 |  |   | 1 |  |   | — |  |   | 39 |  |
| Corporate securities                              |   | 5,064 |  |   | 615 |  |   | 2 |  |   | 5,677 |  |
| Subtotal                                          |   | 8,323 |  |   | 850 |  |   | 4 |  |   | 9,169 |  |
| Equity securities:                                |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                   |   | 2,331 |  |   | 1,346 |  |   | 2 |  |   | 3,675 |  |
| Preferred equities                                |   | 85 |  |   | 41 |  |   | — |  |   | 126 |  |
| Subtotal                                          |   | 2,416 |  |   | 1,387 |  |   | 2 |  |   | 3,801 |  |
| Total                                             |   | $ | 10,739 |  |   | $ | 2,237 |  |   | $ | 6 |  |   | $ | 12,970 |  |
| At December 31, 2012                         |   |   |  |   |   |  |   |   |  |   |   |  |
| Fixed maturities:                                 |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political subdivisions |   | $ | 3,040 |  |   | $ | 250 |  |   | $ | 1 |  |   | $ | 3,289 |  |
| Convertibles and bonds with warrants attached     |   | 31 |  |   | — |  |   | — |  |   | 31 |  |
| United States government                          |   | 7 |  |   | 1 |  |   | — |  |   | 8 |  |
| Government-sponsored enterprises                  |   | 164 |  |   | — |  |   | — |  |   | 164 |  |
| Foreign government                                |   | 3 |  |   | — |  |   | — |  |   | 3 |  |
| Commercial mortgage-backed securities             |   | 27 |  |   | 1 |  |   | — |  |   | 28 |  |
| Corporate securities                              |   | 4,950 |  |   | 622 |  |   | 2 |  |   | 5,570 |  |
| Subtotal                                          |   | 8,222 |  |   | 874 |  |   | 3 |  |   | 9,093 |  |
| Equity securities:                                |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                   |   | 2,270 |  |   | 977 |  |   | 9 |  |   | 3,238 |  |
| Preferred equities                                |   | 99 |  |   | 37 |  |   | 1 |  |   | 135 |  |
| Subtotal                                          |   | 2,369 |  |   | 1,014 |  |   | 10 |  |   | 3,373 |  |
| Total                                             |   | $ | 10,591 |  |   | $ | 1,888 |  |   | $ | 13 |  |   | $ | 12,466 |  |

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                |   | Less than 12 months |   | 12 months or more |   | Total |
|                                              |   | Fair |   | Unrealized |   | Fair |   | Unrealized |   | Fair |   | Unrealized |
| At March 31, 2013                                 |   | value |   | losses |   | value |   | losses |   | value |   | losses |
| Fixed maturities:                                 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political subdivisions |   | $ | 103 |  |   | $ | 1 |  |   | $ | — |  |   | $ | — |  |   | $ | 103 |  |   | $ | 1 |  |
| Government-sponsored enterprises                  |   | 107 |  |   | 1 |  |   | — |  |   | — |  |   | 107 |  |   | 1 |  |
| Commercial mortgage-backed securities             |   | 16 |  |   | — |  |   | — |  |   | — |  |   | 16 |  |   | — |  |
| Corporate securities                              |   | 118 |  |   | 1 |  |   | 13 |  |   | 1 |  |   | 131 |  |   | 2 |  |
| Subtotal                                          |   | 344 |  |   | 3 |  |   | 13 |  |   | 1 |  |   | 357 |  |   | 4 |  |
| Equity securities:                                |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                   |   | 74 |  |   | 2 |  |   | — |  |   | — |  |   | 74 |  |   | 2 |  |
| Preferred equities                                |   | 1 |  |   | — |  |   | — |  |   | — |  |   | 1 |  |   | — |  |
| Subtotal                                          |   | 75 |  |   | 2 |  |   | — |  |   | — |  |   | 75 |  |   | 2 |  |
| Total                                             |   | $ | 419 |  |   | $ | 5 |  |   | $ | 13 |  |   | $ | 1 |  |   | $ | 432 |  |   | $ | 6 |  |
| At December 31, 2012                         |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fixed maturities:                                 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political subdivisions |   | $ | 53 |  |   | $ | 1 |  |   | $ | — |  |   | $ | — |  |   | $ | 53 |  |   | $ | 1 |  |
| Government-sponsored enterprises                  |   | 1 |  |   | — |  |   | — |  |   | — |  |   | 1 |  |   | — |  |
| Corporate securities                              |   | 58 |  |   | 1 |  |   | 17 |  |   | 1 |  |   | 75 |  |   | 2 |  |
| Subtotal                                          |   | 112 |  |   | 2 |  |   | 17 |  |   | 1 |  |   | 129 |  |   | 3 |  |
| Equity securities:                                |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                   |   | 107 |  |   | 9 |  |   | — |  |   | — |  |   | 107 |  |   | 9 |  |
| Preferred equities                                |   | 4 |  |   | 1 |  |   | — |  |   | — |  |   | 4 |  |   | 1 |  |
| Subtotal                                          |   | 111 |  |   | 10 |  |   | — |  |   | — |  |   | 111 |  |   | 10 |  |
| Total                                             |   | $ | 223 |  |   | $ | 12 |  |   | $ | 17 |  |   | $ | 1 |  |   | $ | 240 |  |   | $ | 13 |  |

----

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |
| (In millions)                                                |   | Three months ended March 31, |
|                                                              |   | 2013 |   | 2012 |
| Investment income summary:                                        |   |   |   |   |
| Interest on fixed maturities                                      |   | $ | 102 |  |   | $ | 106 |  |
| Dividends on equity securities                                    |   | 27 |  |   | 26 |  |
| Other investment income                                           |   | 1 |  |   | 1 |  |
| Total                                                             |   | 130 |  |   | 133 |  |
| Less investment expenses                                          |   | 2 |  |   | 2 |  |
| Total                                                             |   | $ | 128 |  |   | $ | 131 |  |
|                                                              |   |   |   |   |
| Realized investment gains and losses summary:                     |   |   |  |   |   |  |
| Fixed maturities:                                                 |   |   |  |   |   |  |
| Gross realized gains                                              |   | $ | 2 |  |   | $ | 3 |  |
| Gross realized losses                                             |   | — |  |   | — |  |
| Other-than-temporary impairments                                  |   | (2 | ) |   | — |  |
| Equity securities:                                                |   |   |  |   |   |  |
| Gross realized gains                                              |   | 37 |  |   | 23 |  |
| Gross realized losses                                             |   | — |  |   | — |  |
| Other-than-temporary impairments                                  |   | — |  |   | (16 | ) |
| Securities with embedded derivatives                              |   | 1 |  |   | 4 |  |
| Other                                                             |   | 3 |  |   | (1 | ) |
| Total                                                             |   | $ | 41 |  |   | $ | 13 |  |
|                                                              |   |   |   |   |
| Change in unrealized gains and losses summary:                    |   |   |  |   |   |  |
| Fixed maturities                                                  |   | $ | (25 | ) |   | $ | 49 |  |
| Equity securities                                                 |   | 381 |  |   | 179 |  |
| Adjustment to deferred acquisition costs and life policy reserves |   | 3 |  |   | (7 | ) |
| Amortization of pension actuarial loss and prior service cost     |   | 2 |  |   | 2 |  |
| Other                                                             |   | (3 | ) |   | 2 |  |
| Income taxes on above                                             |   | (125 | ) |   | (79 | ) |
| Total                                                             |   | $ | 233 |  |   | $ | 146 |  |

----

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                     |   | Quoted prices inactive markets foridentical assets(Level 1) |   | Significant otherobservable inputs (Level 2) |   | Significantunobservableinputs(Level 3) |   | Total |
| At March 31, 2013                                 |   |   |   |   |
| Fixed maturities, available for sale:             |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political subdivisions |   | $ | — |  |   | $ | 3,237 |  |   | $ | 1 |  |   | $ | 3,238 |  |
| Convertibles and bonds with warrants attached     |   | — |  |   | 27 |  |   | — |  |   | 27 |  |
| United States government                          |   | 8 |  |   | — |  |   | — |  |   | 8 |  |
| Government-sponsored enterprises                  |   | — |  |   | 167 |  |   | — |  |   | 167 |  |
| Foreign government                                |   | — |  |   | 13 |  |   | — |  |   | 13 |  |
| Commercial mortgage-backed securities             |   | — |  |   | 39 |  |   | — |  |   | 39 |  |
| Corporate securities                              |   | — |  |   | 5,674 |  |   | 3 |  |   | 5,677 |  |
| Subtotal                                          |   | 8 |  |   | 9,157 |  |   | 4 |  |   | 9,169 |  |
| Common equities, available for sale               |   | 3,675 |  |   | — |  |   | — |  |   | 3,675 |  |
| Preferred equities, available for sale            |   | — |  |   | 124 |  |   | 2 |  |   | 126 |  |
| Taxable fixed maturities separate accounts        |   | — |  |   | 705 |  |   | — |  |   | 705 |  |
| Top Hat Savings Plan                              |   | 11 |  |   | — |  |   | — |  |   | 11 |  |
| Total                                             |   | $ | 3,694 |  |   | $ | 9,986 |  |   | $ | 6 |  |   | $ | 13,686 |  |
| At December 31, 2012                         |   |   |   |   |   |   |   |   |
| Fixed maturities, available for sale:             |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political subdivisions |   | $ | — |  |   | $ | 3,288 |  |   | $ | 1 |  |   | $ | 3,289 |  |
| Convertibles and bonds with warrants attached     |   | — |  |   | 31 |  |   | — |  |   | 31 |  |
| United States government                          |   | 8 |  |   | — |  |   | — |  |   | 8 |  |
| Government-sponsored enterprises                  |   | — |  |   | 164 |  |   | — |  |   | 164 |  |
| Foreign government                                |   | — |  |   | 3 |  |   | — |  |   | 3 |  |
| Commercial mortgage-backed securities             |   | — |  |   | 28 |  |   | — |  |   | 28 |  |
| Corporate securities                              |   | — |  |   | 5,567 |  |   | 3 |  |   | 5,570 |  |
| Subtotal                                          |   | 8 |  |   | 9,081 |  |   | 4 |  |   | 9,093 |  |
| Common equities, available for sale               |   | 3,238 |  |   | — |  |   | — |  |   | 3,238 |  |
| Preferred equities, available for sale            |   | — |  |   | 134 |  |   | 1 |  |   | 135 |  |
| Taxable fixed-maturities separate accounts        |   | — |  |   | 689 |  |   | — |  |   | 689 |  |
| Top Hat Savings Plan                              |   | 9 |  |   | — |  |   | — |  |   | 9 |  |
| Total                                             |   | $ | 3,255 |  |   | $ | 9,904 |  |   | $ | 5 |  |   | $ | 13,164 |  |

----

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                           |   | Corporate fixedmaturities |   | States,municipalitiesand politicalsubdivisionsfixed maturities |   | Preferred     equities |   | Total |
| Beginning balance, December 31, 2012         |   | $ | 3 |  |   | $ | 1 |  |   | $ | 1 |  |   | $ | 5 |  |
| Total gains or losses (realized/unrealized): |   |   |  |   |   |  |   |   |  |   |   |  |
| Included in earnings                         |   | — |  |   | — |  |   | — |  |   | — |  |
| Included in other comprehensive income       |   | — |  |   | — |  |   | — |  |   | — |  |
| Purchases                                    |   | — |  |   | — |  |   | 1 |  |   | 1 |  |
| Sales                                        |   | — |  |   | — |  |   | — |  |   | — |  |
| Transfers into Level 3                       |   | — |  |   | — |  |   | — |  |   | — |  |
| Transfers out of Level 3                     |   | — |  |   | — |  |   | — |  |   | — |  |
| Ending balance, March 31, 2013          |   | $ | 3 |  |   | $ | 1 |  |   | $ | 2 |  |   | $ | 6 |  |
|                                         |   |   |   |   |   |   |   |   |
| Beginning balance, December 31, 2011         |   | $ | 18 |  |   | $ | 3 |  |   | $ | 4 |  |   | $ | 25 |  |
| Total gains or losses (realized/unrealized): |   |   |  |   |   |  |   |   |  |   |   |  |
| Included in earnings                         |   | — |  |   | — |  |   | — |  |   | — |  |
| Included in other comprehensive income       |   | 3 |  |   | — |  |   | 2 |  |   | 5 |  |
| Purchases                                    |   | — |  |   | — |  |   | 1 |  |   | 1 |  |
| Sales                                        |   | (3 | ) |   | (1 | ) |   | — |  |   | (4 | ) |
| Transfers into Level 3                       |   | 1 |  |   | — |  |   | — |  |   | 1 |  |
| Transfers out of Level 3                     |   | (3 | ) |   | — |  |   | — |  |   | (3 | ) |
| Ending balance, March 31, 2012          |   | $ | 16 |  |   | $ | 2 |  |   | $ | 7 |  |   | $ | 25 |  |

|                    |
|--------------------|
|                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions) |   |   |   |   |   | Book value |   | Principal amount |
|               |   |   |   |   |   | March 31, |   | December 31, |   | March 31, |   | December 31, |
| Interest rate |   | Year of issue |   |   |   | 2013 |   | 2012 |   | 2013 |   | 2012 |
| 6.900              | % |   | 1998 |   | Senior debentures, due 2028 |   | $ | 28 |  |   | $ | 28 |  |   | $ | 28 |  |   | $ | 28 |  |
| 6.920              | % |   | 2005 |   | Senior debentures, due 2028 |   | 391 |  |   | 391 |  |   | 391 |  |   | 391 |  |
| 6.125              | % |   | 2004 |   | Senior notes, due 2034 |   | 371 |  |   | 371 |  |   | 374 |  |   | 374 |  |
|               |  |   |   |   | Total |   | $ | 790 |  |   | $ | 790 |  |   | $ | 793 |  |   | $ | 793 |  |

----

|                                    |
|------------------------------------|
|                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                      |   | Quoted prices inactive markets foridentical assets(Level 1) |   | Significant otherobservable inputs (Level 2) |   | Significantunobservableinputs(Level 3) |   | Total |
| At March 31, 2013                  |   |   |   |   |
| Note payable                       |   | $ | — |  |   | $ | 104 |  |   | $ | — |  |   | $ | 104 |  |
| 6.900% senior debentures, due 2028 |   | — |  |   | 32 |  |   | — |  |   | 32 |  |
| 6.920% senior debentures, due 2028 |   | — |  |   | 504 |  |   | — |  |   | 504 |  |
| 6.125% senior notes, due 2034      |   | — |  |   | 428 |  |   | — |  |   | 428 |  |
| Total                              |   | $ | — |  |   | $ | 1,068 |  |   | $ | — |  |   | $ | 1,068 |  |
|                               |   |   |   |   |   |   |   |   |
| At December 31, 2012               |   |   |   |   |   |   |   |   |
| Note payable                       |   | $ | — |  |   | $ | 104 |  |   | $ | — |  |   | $ | 104 |  |
| 6.900% senior debentures, due 2028 |   | — |  |   | 31 |  |   | — |  |   | 31 |  |
| 6.920% senior debentures, due 2028 |   | — |  |   | 479 |  |   | — |  |   | 479 |  |
| 6.125% senior notes, due 2034      |   | — |  |   | 431 |  |   | — |  |   | 431 |  |
| Total                              |   | $ | — |  |   | $ | 1,045 |  |   | $ | — |  |   | $ | 1,045 |  |

|                      |
|----------------------|
|                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)        |   | Quoted prices inactive markets foridentical assets(Level 1) |   | Significant otherobservable inputs (Level 2) |   | Significantunobservableinputs(Level 3) |   | Total |
| At March 31, 2013    |   |   |   |   |
| Life policy loans    |   | $ | — |  |   | $ | — |  |   | $ | 48 |  |   | $ | 48 |  |
|                 |   |   |   |   |   |   |   |   |
| At December 31, 2012 |   |   |   |   |   |   |   |   |
| Life policy loans    |   | $ | — |  |   | $ | — |  |   | $ | 50 |  |   | $ | 50 |  |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)          |   | Quoted prices inactive markets foridentical assets(Level 1) |   | Significant otherobservable inputs (Level 2) |   | Significantunobservableinputs(Level 3) |   | Total |
| At March 31, 2013      |   |   |   |   |
| Deferred annuities     |   | $ | — |  |   | $ | — |  |   | $ | 898 |  |   | $ | 898 |  |
| Structured settlements |   | — |  |   | 235 |  |   | — |  |   | 235 |  |
| Total                  |   | $ | — |  |   | $ | 235 |  |   | $ | 898 |  |   | $ | 1,133 |  |
|                   |   |   |   |   |   |   |   |   |
| At December 31, 2012   |   |   |   |   |   |   |   |   |
| Deferred annuities     |   | $ | — |  |   | $ | — |  |   | $ | 898 |  |   | $ | 898 |  |
| Structured settlements |   | — |  |   | 240 |  |   | — |  |   | 240 |  |
| Total                  |   | $ | — |  |   | $ | 240 |  |   | $ | 898 |  |   | $ | 1,138 |  |

----

|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |  |  |  |
| (In millions)                                             |   | Three months ended March 31, |
|                                                      |   | 2013 |   | 2012 |
| Gross loss and loss expense reserves, beginning of period |   | $ | 4,169 |  |   | $ | 4,280 |  |
| Less reinsurance receivable                               |   | 356 |  |   | 375 |  |
| Net loss and loss expense reserves, beginning of period   |   | 3,813 |  |   | 3,905 |  |
| Net incurred loss and loss expenses related to:           |   |   |  |   |   |  |
| Current accident year                                     |   | 534 |  |   | 655 |  |
| Prior accident years                                      |   | (10 | ) |   | (116 | ) |
| Total incurred                                            |   | 524 |  |   | 539 |  |
| Net paid loss and loss expenses related to:               |   |   |  |   |   |  |
| Current accident year                                     |   | 121 |  |   | 132 |  |
| Prior accident years                                      |   | 392 |  |   | 375 |  |
| Total paid                                                |   | 513 |  |   | 507 |  |
| Net loss and loss expense reserves, end of period         |   | 3,824 |  |   | 3,937 |  |
| Plus reinsurance receivable                               |   | 349 |  |   | 352 |  |
| Gross loss and loss expense reserves, end of period       |   | $ | 4,173 |  |   | $ | 4,289 |  |

----

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |
| (In millions)                                      |   | March 31, 2013 |   | December 31, 2012 |
| Ordinary/traditional life                          |   | $ | 760 |  |   | $ | 752 |  |
| Universal life                                     |   | 487 |  |   | 483 |  |
| Deferred annuities                                 |   | 852 |  |   | 850 |  |
| Structured settlements                             |   | 194 |  |   | 193 |  |
| Other                                              |   | 17 |  |   | 17 |  |
| Total life policy and investment contract reserves |   | $ | 2,310 |  |   | $ | 2,295 |  |

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |
| (In millions)                                                  |   | Three months ended March 31, |
|                                                                |   | 2013 |   | 2012 |
| Deferred policy acquisition costs asset at beginning of period |   | $ | 470 |  |   | $ | 477 |  |
| Capitalized deferred policy acquisition costs                  |   | 198 |  |   | 170 |  |
| Amortized deferred policy acquisition costs                    |   | (179 | ) |   | (156 | ) |
| Amortized shadow deferred policy acquisition costs             |   | 2 |  |   | (8 | ) |
| Deferred policy acquisition costs asset at end of period       |   | $ | 491 |  |   | $ | 483 |  |

----

|                                                                                                                             |
|-----------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                                                               |   | Three months ended March 31, |
|                                                                                                                        |   | 2013 |   |   | 2012 |
|                                                                                                                        |   | Before tax |   | Income tax |   | Net |   |   | Before tax |   | Income tax |   | Net |
| Accumulated unrealized gains, net, on investments available for sale, beginning of period                                   |   | $ | 1,875 |  |   | $ | 647 |  |   | $ | 1,228 |  |   |   | $ | 1,489 |  |   | $ | 512 |  |   | $ | 977 |  |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income before reclassification                                                                          |   | 397 |  |   | 139 |  |   | 258 |  |   |   | 241 |  |   | 84 |  |   | 157 |  |
| Reclassification adjustment for realized gains, net, included in net income                                                 |   | (41 | ) |   | (15 | ) |   | (26 | ) |   |   | (13 | ) |   | (4 | ) |   | (9 | ) |
| Effect on other comprehensive income                                                                                        |   | 356 |  |   | 124 |  |   | 232 |  |   |   | 228 |  |   | 80 |  |   | 148 |  |
| Accumulated unrealized gains, net, on investments available for sale, end of period                                         |   | $ | 2,231 |  |   | $ | 771 |  |   | $ | 1,460 |  |   |   | $ | 1,717 |  |   | $ | 592 |  |   | $ | 1,125 |  |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated unrealized losses, net, for pension obligations, beginning of period                                            |   | $ | (101 | ) |   | $ | (35 | ) |   | $ | (66 | ) |   |   | $ | (88 | ) |   | $ | (31 | ) |   | $ | (57 | ) |
| Other comprehensive income before reclassification                                                                          |   | — |  |   | — |  |   | — |  |   |   | — |  |   | — |  |   | — |  |
| Reclassification adjustment for amortization of actuarial loss and prior service cost, net, included in net income          |   | 2 |  |   | 1 |  |   | 1 |  |   |   | 2 |  |   | 1 |  |   | 1 |  |
| Effect on other comprehensive income                                                                                        |   | 2 |  |   | 1 |  |   | 1 |  |   |   | 2 |  |   | 1 |  |   | 1 |  |
| Accumulated unrealized losses, net, for pension obligations, end of period                                                  |   | $ | (99 | ) |   | $ | (34 | ) |   | $ | (65 | ) |   |   | $ | (86 | ) |   | $ | (30 | ) |   | $ | (56 | ) |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated unrealized losses, net, on life deferred acquisition costs, life policy reserves and other, beginning of period |   | $ | (50 | ) |   | $ | (17 | ) |   | $ | (33 | ) |   |   | $ | (29 | ) |   | $ | (10 | ) |   | $ | (19 | ) |
| Effect on other comprehensive income                                                                                        |   | — |  |   | — |  |   | — |  |   |   | (5 | ) |   | (2 | ) |   | (3 | ) |
| Accumulated unrealized  losses, net, on life deferred acquisition costs, life policy reserves and other, end of period      |   | $ | (50 | ) |   | $ | (17 | ) |   | $ | (33 | ) |   |   | $ | (34 | ) |   | $ | (12 | ) |   | $ | (22 | ) |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated other comprehensive income, beginning of period                                                                 |   | $ | 1,724 |  |   | $ | 595 |  |   | $ | 1,129 |  |   |   | $ | 1,372 |  |   | $ | 471 |  |   | $ | 901 |  |
| Change in unrealized gains, net, on investments available for sale                                                          |   | 356 |  |   | 124 |  |   | 232 |  |   |   | 228 |  |   | 80 |  |   | 148 |  |
| Change in pension obligations                                                                                               |   | 2 |  |   | 1 |  |   | 1 |  |   |   | 2 |  |   | 1 |  |   | 1 |  |
| Change in life deferred acquisition costs, life policy reserves and other                                                   |   | — |  |   | — |  |   | — |  |   |   | (5 | ) |   | (2 | ) |   | (3 | ) |
| Effect on other comprehensive income                                                                                        |   | 358 |  |   | 125 |  |   | 233 |  |   |   | 225 |  |   | 79 |  |   | 146 |  |
| Accumulated other comprehensive income, end of period                                                                       |   | $ | 2,082 |  |   | $ | 720 |  |   | $ | 1,362 |  |   |   | $ | 1,597 |  |   | $ | 550 |  |   | $ | 1,047 |  |

----

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |
| (In millions)           |   | Three months ended March 31, |
|                    |   | 2013 |   | 2012 |
| Direct earned premiums  |   | $ | 935 |  |   | $ | 839 |  |
| Assumed earned premiums |   | 2 |  |   | 3 |  |
| Ceded earned premiums   |   | (48 | ) |   | (44 | ) |
| Net earned premiums     |   | $ | 889 |  |   | $ | 798 |  |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |
| (In millions)                           |   | Three months ended March 31, |
|                                    |   | 2013 |   | 2012 |
| Direct incurred loss and loss expenses  |   | $ | 535 |  |   | $ | 536 |  |
| Assumed incurred loss and loss expenses |   | 2 |  |   | 5 |  |
| Ceded incurred loss and loss expenses   |   | (13 | ) |   | (2 | ) |
| Net incurred loss and loss expenses     |   | $ | 524 |  |   | $ | 539 |  |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |
| (In millions)           |   | Three months ended March 31, |
|                    |   | 2013 |   | 2012 |
| Direct earned premiums  |   | $ | 56 |  |   | $ | 54 |  |
| Assumed earned premiums |   | — |  |   | — |  |
| Ceded earned premiums   |   | (14 | ) |   | (13 | ) |
| Net earned premiums     |   | $ | 42 |  |   | $ | 41 |  |

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |
| (In millions)                               |   | Three months ended March 31, |
|                                        |   | 2013 |   | 2012 |
| Direct contract holders' benefits incurred  |   | $ | 64 |  |   | $ | 53 |  |
| Assumed contract holders' benefits incurred |   | — |  |   | — |  |
| Ceded contract holders' benefits incurred   |   | (20 | ) |   | (10 | ) |
| Net incurred loss and loss expenses         |   | $ | 44 |  |   | $ | 43 |  |

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                  |   | Three months ended March 31, |
|                                   |   | 2013 |   | 2012 |
| Tax at statutory rate                  |   | $ | 76 |  |   | 35.0 |  % |   | $ | 39 |  |   | 35.0 |  % |
| Increase (decrease) resulting from:    |   |   |  |   |   |  |   |   |  |   |   |  |
| Tax-exempt income from municipal bonds |   | (8 | ) |   | (3.7 | ) |   | (8 | ) |   | (7.6 | ) |
| Dividend received exclusion            |   | (6 | ) |   | (2.6 | ) |   | (6 | ) |   | (4.8 | ) |
| Other                                  |   | 1 |  |   | 0.3 |  |   | 1 |  |   | 0.6 |  |
| Provision for income taxes             |   | $ | 63 |  |   | 29.0 |  % |   | $ | 26 |  |   | 23.2 |  % |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |
| (Dollars in millions except share data in thousands) |   | Three months ended March 31, |
|                                                 | 2013 |   | 2012 |
| Numerator:                                           |   |   |  |   |   |  |
| Net income—basic and diluted                   |   | $ | 154 |  |   | $ | 86 |  |
| Denominator:                                         |   |   |  |   |   |  |
| Weighted-average common shares outstanding           |   | 163,133 |  |   | 162,277 |  |
| Effect of stock-based awards:                        |   |   |  |   |   |  |
| Nonvested shares                                     |   | 783 |  |   | 541 |  |
| Stock options                                        |   | 1,008 |  |   | 327 |  |
| Adjusted weighted-average shares                     |   | 164,924 |  |   | 163,145 |  |
| Earnings per share:                                  |   |   |  |   |   |  |
| Basic                                                |   | $ | 0.95 |  |   | $ | 0.53 |  |
| Diluted                                              |   | 0.94 |  |   | 0.53 |  |
| Number of anti-dilutive stock-based awards           |   | 2,056 |  |   | 6,215 |  |

----

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |
| (In millions)                                         |   | Three months ended March 31, |
|                                                  |   | 2013 |   | 2012 |
| Service cost                                          |   | $ | 3 |  |   | $ | 3 |  |
| Interest cost                                         |   | 3 |  |   | 3 |  |
| Expected return on plan assets                        |   | (4 | ) |   | (4 | ) |
| Amortization of actuarial loss and prior service cost |   | 2 |  |   | 2 |  |
| Net periodic benefit cost                             |   | $ | 4 |  |   | $ | 4 |  |

----

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

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

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

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

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

----

|                                                                                                        |
|--------------------------------------------------------------------------------------------------------|
|                                                                                                        |  |  |  |  |  |  |  |  |
| (In millions)                                                                                          |   | Three months ended March 31, |
|                                                                                                   |   | 2013 |   | 2012 |
| Revenues:                                                                                              |   |   |  |   |   |  |
| Commercial lines insurance                                                                             |   |   |  |   |   |  |
| Commercial casualty                                                                                    |   | $ | 204 |  |   | $ | 181 |  |
| Commercial property                                                                                    |   | 147 |  |   | 131 |  |
| Commercial auto                                                                                        |   | 114 |  |   | 101 |  |
| Workers' compensation                                                                                  |   | 88 |  |   | 81 |  |
| Specialty packages                                                                                     |   | 39 |  |   | 38 |  |
| Surety and executive risk                                                                              |   | 29 |  |   | 27 |  |
| Machinery and equipment                                                                                |   | 10 |  |   | 9 |  |
| Commercial lines insurance premiums                                                                    |   | 631 |  |   | 568 |  |
| Fee revenue                                                                                            |   | — |  |   | 1 |  |
| Total commercial lines insurance                                                                       |   | 631 |  |   | 569 |  |
| Personal lines insurance                                                                               |   |   |  |   |   |  |
| Personal auto                                                                                          |   | 107 |  |   | 98 |  |
| Homeowner                                                                                              |   | 96 |  |   | 84 |  |
| Other personal lines                                                                                   |   | 28 |  |   | 27 |  |
| Personal lines insurance premiums                                                                      |   | 231 |  |   | 209 |  |
|                                                                                                   |   |   |   |   |
| Excess and surplus lines insurance                                                                     |   | 27 |  |   | 21 |  |
|                                                                                                   |   |   |   |   |
| Life insurance                                                                                         |   | 42 |  |   | 41 |  |
|      Separate account investment management fees                              |   | 1 |  |   | — |  |
|              Total life insurance     |   | 43 |  |   | 41 |  |
|                                                                                                   |   |   |   |   |
| Investment operations                                                                                  |   |   |   |   |
|      Investment income, net of expenses                                       |   | 128 |  |   | 131 |  |
|      Realized investment gains, net                                           |   | 41 |  |   | 13 |  |
|              Total investment revenue |   | 169 |  |   | 144 |  |
|                                                                                                   |   |   |   |   |
| Other                                                                                                  |   | 2 |  |   | 2 |  |
| Total revenues                                                                                         |   | $ | 1,103 |  |   | $ | 986 |  |
| Income (loss) before income taxes:                                                                     |   |   |  |   |   |  |
| Insurance underwriting results:                                                                        |   |   |  |   |   |  |
| Commercial lines insurance                                                                             |   | $ | 58 |  |   | $ | 34 |  |
| Personal lines insurance                                                                               |   | 20 |  |   | (22 | ) |
| Excess and surplus lines insurance                                                                     |   | — |  |   | (3 | ) |
| Life insurance                                                                                         |   | 7 |  |   | (3 | ) |
| Investment operations                                                                                  |   | 148 |  |   | 123 |  |
| Other                                                                                                  |   | (16 | ) |   | (17 | ) |
| Total                                                                                                  |   | $ | 217 |  |   | $ | 112 |  |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |
| Identifiable assets:        |   | March 31, 2013 |   | December 31, 2012 |
| Property casualty insurance |   | $ | 2,403 |  |   | $ | 2,395 |  |
| Life insurance              |   | 1,193 |  |   | 1,201 |  |
| Investment operations       |   | 13,099 |  |   | 12,599 |  |
| Other                       |   | 342 |  |   | 353 |  |
| Total                       |   | $ | 17,037 |  |   | $ | 16,548 |  |

----

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

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

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

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

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

|         |                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | 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 |

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

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

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

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

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

----

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

----

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions except share data in thousands) |   | Three months ended March 31, |
|                                                 |   | 2013 |   | 2012 |   | Change % |
| Statement of income and comprehensive income data:   |   |   |  |   |   |  |   |   |  |
| Earned premiums                                      |   | $ | 931 |  |   | $ | 839 |  |   | 11 |  |
| Investment income, net of expenses (pretax)          |   | 128 |  |   | 131 |  |   | (2 | ) |
| Realized investment gains and losses (pretax)        |   | 41 |  |   | 13 |  |   | 215 |  |
| Total revenues                                       |   | 1,103 |  |   | 986 |  |   | 12 |  |
| Net income                                           |   | 154 |  |   | 86 |  |   | 79 |  |
| Comprehensive income                                 |   | 387 |  |   | 232 |  |   | 67 |  |
| Per share data                                       |   |  |  |   |   |  |   |   |  |
| Net income - diluted                                 |   | $ | 0.94 |  |   | $ | 0.53 |  |   | 77 |  |
| Cash dividends declared                              |   | 0.4075 |  |   | 0.4025 |  |   | 1 |  |
| Weighted average shares outstanding                  |   | 164,924 |  |   | 163,145 |  |   | 1 |  |

----

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |
| (Dollars in millions except share data) |   | At March 31, |   | At December 31, |
|                                    |   | 2013 |   | 2012 |
| Balance sheet data:                     |   |   |  |   |   |  |
| Invested assets                         |   | $ | 13,037 |  |   | $ | 12,534 |  |
| Total assets                            |   | 17,037 |  |   | 16,548 |  |
| Short-term debt                         |   | 104 |  |   | 104 |  |
| Long-term debt                          |   | 790 |  |   | 790 |  |
| Shareholders' equity                    |   | 5,785 |  |   | 5,453 |  |
| Book value per share                    |   | 35.41 |  |   | 33.48 |  |
| Debt-to-total-capital ratio             |   | 13.4 | % |   | 14.1 | % |

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |
|                                                               |   | Three months ended March 31, |
|                                                                    |   | 2013 |   | 2012 |
| Value creation ratio major components:                             |   |   |  |   |   |  |
| Net income before realized gains                                   |   | 2.3 |  % |   | 1.5 |  % |
| Change in realized and unrealized gains, fixed-maturity securities |   | (0.3 | ) |   | 0.7 |  |
| Change in realized and unrealized gains, equity securities         |   | 5.0 |  |   | 2.4 |  |
| Other                                                              |   | 0.0 |  |   | (0.4 | ) |
|      Value creation ratio                 |   | 7.0 |  % |   | 4.2 |  % |

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |  |
| (Dollars are per share)                                            |   | Three months ended March 31, |
|                                                               |   | 2013 |   | 2012 |
| Book value change per share:                                       |   |   |   |   |
| End of period book value                                           |   | $ | 35.41 |  |   | $ | 32.07 |  |
| Less beginning of period book value                                |   | 33.48 |  |   | 31.03 |  |
| Change in book value                                               |   | $ | 1.93 |  |   | $ | 1.04 |  |
|                                                               |   |   |   |   |
|                                                               |   |   |   |   |
| Change in book value:                                              |   |   |  |   |   |  |
| Net income before realized gains                                   |   | $ | 0.78 |  |   | $ | 0.48 |  |
| Change in realized and unrealized gains, fixed-maturity securities |   | (0.09 | ) |   | 0.22 |  |
| Change in realized and unrealized gains, equity securities         |   | 1.66 |  |   | 0.75 |  |
| Dividend declared to shareholders                                  |   | (0.41 | ) |   | (0.40 | ) |
| Other                                                              |   | (0.01 | ) |   | (0.01 | ) |
| Total change in book value                                         |   | $ | 1.93 |  |   | $ | 1.04 |  |

----

|                                                                                                      |
|------------------------------------------------------------------------------------------------------|
|                                                                                                      |  |  |  |  |  |  |  |  |
| (Dollars are per share)                                                                              |   | Three months ended March 31, |
|                                                                                                 |   | 2013 |   | 2012 |
| Book value change per share:                                                                         |   |   |   |   |
| Book value as originally reported December 31, 2011                                                  |   |   |   | $ | 31.16 |  |
| Cumulative effect of a change in accounting for deferred policy                                      |   |   |   |   |
| acquisition costs, net of tax                                                                        |   |  |  |   | (0.13 | ) |
| Book value as adjusted December 31, 2011                                                             |   |   |   | $ | 31.03 |  |
|                                                                                                      |   |   |   |   |
| Value creation ratio:                                                                                |   |   |  |   |   |  |
| End of period book value                                                                             |   | $ | 35.41 |  |   | $ | 32.07 |  |
| Less beginning of period book value - as originally reported                                         |   | 33.48 |  |   | 31.16 |  |
| Change in book value                                                                                 |   | 1.93 |  |   | 0.91 |  |
| Dividend declared to shareholders                                                                    |   | 0.4075 |  |   | 0.4025 |  |
| Total contribution to value creation ratio                                                           |   | $ | 2.3375 |  |   | $ | 1.3125 |  |
|                                                                                                 |   |   |   |   |
| Contribution to value creation ratio from change in book value*                                      |   | 5.8 | % |   | 2.9 | % |
| Contribution to value creation ratio from dividends declared to shareholders**                       |   | 1.2 |  |   | 1.3 |  |
| Value creation ratio                                                                                 |   | 7.0 | % |   | 4.2 | % |
|                                                                                                 |   |   |   |   |
| *Change in book value divided by the beginning of period book value as originally reported           |   |   |   |   |
| **Dividend declared to shareholders divided by beginning of period book value as originally reported |   |   |   |   |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Premium growth - We believe over any five-year period our agency relationships and initiatives can lead to a property casualty written premium growth rate that exceeds the industry average. For the first three months of 2013, our total property casualty net written premiums' year-over-year growth was 15 percent, comparing favorably with A.M. Best's February 2013 projection of approximately 5 percent full-year growth for the industry excluding its mortgage and financial guaranty lines of business. Our premium growth initiatives are discussed below in Highlights of Our Strategies and Supporting Initiatives. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Combined ratio - We believe our underwriting philosophy and initiatives can generate a GAAP combined ratio over any five-year period that is consistently within the range of 95 percent to 100 percent. For the first three months of 2013, our GAAP combined ratio was 91.2 percent and our statutory combined ratio was 88.9 percent, both including 2.0 percentage points of current accident year catastrophe losses partially offset by 1.1 percentage points of favorable loss reserve development on prior accident years. As of February 2013, A.M. Best forecasted the industry's full-year 2013 statutory combined ratio at approximately 101 percent, including approximately 5 percentage points of catastrophe losses and a favorable impact of approximately 3 percentage points from prior accident year reserve releases. The industry's ratio again excludes its mortgage and financial guaranty lines of business. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Investment contribution - We believe our investment philosophy and initiatives can drive investment income growth and lead to a total return on our equity investment portfolio over a five-year period that exceeds the five-year return of the Standard & Poor's 500 Index. For the first three months of 2013, pretax investment income was $128 million, down 2 percent compared with the same period in 2012. We believe our investment portfolio mix provides an appropriate balance of income stability and growth with capital appreciation potential. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Improve insurance profitability - Implementation of these initiatives is intended to enhance underwriting expertise and knowledge, thereby increasing our ability to manage our business while also gaining efficiency. Additional information and more focused action on underperforming product lines, plus expanding pricing capabilities through the use of technology and analytics, can lead to better profit margins. Improved internal processes with additional performance metrics can help us be more efficient and effective. These initiatives also support the ability of the independent agencies that represent us to grow profitably by allowing them to serve clients faster and to more efficiently manage agency expenses. |

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

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Enhance underwriting expertise and knowledge - We continue efforts to increase our use of information and to develop our skills for improved underwriting performance, such as expanding our pricing capabilities by using predictive analytics. Expanded capabilities include streamlining and optimizing data to improve accuracy, timeliness and ease of use. We also continue to develop additional business data and tools to support more accurate underwriting, including more granular pricing, by further developing our data warehouse used in our property casualty and life insurance operations. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Improve internal processes - Improved processes support our strategic goals, reducing internal costs and allowing us to focus more resources on providing agency services. Related efforts include additional streamlining of processes to issue qualified personal lines or small commercial lines business without intervention by an underwriter. Progress during the first quarter of 2013 included expanding streamlined processing of small commercial general liability policies to nine additional states. Audits of policies processed without an underwriter continue to indicate that those policies are being appropriately underwritten in an automated fashion as intended. |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Expansion of our marketing and service capabilities - We continue to enhance our generalist approach to allow our appointed agencies to better compete in the marketplace by providing services an agent's clients want and need. Expansion initiatives include ongoing development of targeted marketing programs, adding field marketing representatives for additional agency support in selected areas and piloting additional services to select agencies to develop our new customer care center for small commercial business policies. Progress during the first quarter of 2013 included the initial implementation of a small consumer advertising campaign to better support our independent agents in selected markets. We also expanded our excess and surplus lines field underwriting presence by adding two field marketing representatives.  In April 2013, we added one field marketing representative to support agencies in a new marketing territory for commercial lines operations. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | New agency appointments - We continue to appoint new agencies to develop additional points of distribution, focusing on areas where our market share is less than 1 percent while also considering economic and catastrophe risk factors. In 2013, we are targeting approximately 65 appointments of independent agencies. During the first three months of 2013, we appointed 33 new agencies that write in aggregate approximately $670 million in property casualty premiums annually with various insurance carriers for an average of approximately $20 million per agency. As of March 31, 2013, a total of 1,427 agency relationships market our standard market insurance products from 1,779 reporting locations. |

----

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Insurer Financial Strength Ratings           |
| RatingAgency                                 |   | Standard Market PropertyCasualty Insurance Subsidiary |   | Life Insurance Subsidiary |   | Excess and SurplusInsurance Subsidiary |   | Date of Most RecentAffirmation or Action |
|                                         |   |   |   |   |   | RatingTier |   |   |   |   |   | RatingTier |   |   |   |   |   | RatingTier |   |   |
| A. M. Best Co.                               |   | A+ |   | Superior |   | 2 of 16 |   | A |   | Excellent |   | 3 of 16 |   | A |   | Excellent |   | 3 of 16 |   | Stable outlook (12/19/12) |
| Fitch Ratings                                |   | A+ |   | Strong |   | 5 of 21 |   | A+ |   | Strong |   | 5 of 21 |   | - |   | - |   | - |   | Stable outlook (11/20/12) |
| Moody's Investors  Service              |   | A1 |   | Good |   | 5 of 21 |   | - |   | - |   | - |   | - |   | - |   | - |   | Negative outlook (10/21/11) |
| Standard & Poor's  Ratings Services |   | A |   | Strong |   | 6 of 21 |   | A |   | Strong |   | 6 of 21 |   | - |   | - |   | - |   | Stable outlook (7/30/12) |

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

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

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

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

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

----

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                        |   | Three months ended March 31, |
|                                                                         |   | 2013 |   | 2012 |   | Change % |
| Earned premiums                                                              |   | $ | 889 |  |   | $ | 798 |  |   | 11 |  |
| Fee revenues                                                                 |   | — |  |   | 1 |  |   | (100 | ) |
| Total revenues                                                               |   | 889 |  |   | 799 |  |   | 11 |  |
| Loss and loss expenses from:                                                 |   |   |  |   |   |  |   |   |  |
| Current accident year before catastrophe losses                              |   | 516 |  |   | 544 |  |   | (5 | ) |
| Current accident year catastrophe losses                                     |   | 18 |  |   | 111 |  |   | (84 | ) |
| Prior accident years before catastrophe losses                               |   | (3 | ) |   | (94 | ) |   | (97 | ) |
| Prior accident years catastrophe losses                                      |   | (7 | ) |   | (22 | ) |   | (68 | ) |
| Loss and loss expenses                                                       |   | 524 |  |   | 539 |  |   | (3 | ) |
| Underwriting expenses                                                        |   | 287 |  |   | 251 |  |   | 14 |  |
| Underwriting profit                                                          |   | $ | 78 |  |   | $ | 9 |  |   | 767 |  |
|                                                                         |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                      |   |   |  |   |   |  |   | Pt. Change |  |
|     Current accident year before catastrophe losses      |   | 58.1 |  % |   | 68.1 |  % |   | (10.0 | ) |
|     Current accident year catastrophe losses             |   | 2.0 |  |   | 13.9 |  |   | (11.9 | ) |
|     Prior accident years before catastrophe losses       |   | (0.3 | ) |   | (11.7 | ) |   | 11.4 |  |
|     Prior accident years catastrophe losses              |   | (0.8 | ) |   | (2.8 | ) |   | 2.0 |  |
| Loss and loss expenses                                                       |   | 59.0 |  |   | 67.5 |  |   | (8.5 | ) |
| Underwriting expenses                                                        |   | 32.2 |  |   | 31.6 |  |   | 0.6 |  |
| Combined ratio                                                               |   | 91.2 |  % |   | 99.1 |  % |   | (7.9 | ) |
|                                                                         |   |   |   |   |   |   |
| Combined ratio:                                                              |   | 91.2 |  % |   | 99.1 |  % |   | (7.9 | ) |
| Contribution from catastrophe losses and prior years reserve development     |   | 0.9 |  |   | (0.6 | ) |   | 1.5 |  |
| Combined ratio before catastrophe losses and prior years reserve development |   | 90.3 |  % |   | 99.7 |  % |   | (9.4 | ) |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                |   | Three months ended March 31, |
|                                      |   | 2013 |   | 2012 |   | Change % |
| Agency renewal written premiums      |   | $ | 845 |  |   | $ | 762 |  |   | 11 |  |
| Agency new business written premiums |   | 135 |  |   | 108 |  |   | 25 |  |
| Other written premiums               |   | (10 | ) |   | (27 | ) |   | 63 |  |
| Net written premiums                 |   | 970 |  |   | 843 |  |   | 15 |  |
| Unearned premium change              |   | (81 | ) |   | (45 | ) |   | (80 | ) |
| Earned premiums                      |   | $ | 889 |  |   | $ | 798 |  |   | 11 |  |

----

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions, net of reinsurance)          |   |   |   | Three months ended March 31, |
|                                       |   |   |   |   |   | Comm. |   | Pers. |   | E&S |   |   |  |
| Dates                                      |   | Event |   | Region |   | lines |   | lines |   | lines |   | Total |
| 2013                                       |   |   |   |   |   |   |  |   |   |  |   |   |  |   |   |  |
| Mar. 18 -19                                |   | Hail, wind |   | South |   | $ | 2 |  |   | $ | 9 |  |   | $ | — |  |   | $ | 11 |  |
| All other 2013 catastrophes                |   |   |   | 5 |  |   | 2 |  |   | — |  |   | 7 |  |
| Development on 2012 and prior catastrophes |   |   |   | (4 | ) |   | (3 | ) |   | — |  |   | (7 | ) |
| Calendar year incurred total               |   |   |   | $ | 3 |  |   | $ | 8 |  |   | $ | — |  |   | $ | 11 |  |
| 2012                                       |   |   |   |   |   |   |  |   |   |  |   |   |  |   |   |  |
| Feb. 28-29                                 |   | Hail, wind, tornado |   | Midwest |   | $ | 22 |  |   | $ | 8 |  |   | $ | — |  |   | $ | 30 |  |
| Mar. 2-3                                   |   | Hail, wind, tornado |   | Midwest, South |   | 28 |  |   | 45 |  |   | 1 |  |   | 74 |  |
| All other 2012 catastrophes                |   |   |   | 2 |  |   | 5 |  |   | — |  |   | 7 |  |
| Development on 2011 and prior catastrophes |   |   |   | (13 | ) |   | (9 | ) |   | — |  |   | (22 | ) |
| Calendar year incurred total               |   |   |   | $ | 39 |  |   | $ | 49 |  |   | $ | 1 |  |   | $ | 89 |  |

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                     |   | Three months ended March 31, |
|                                      |   | 2013 |   | 2012 |   | Change % |
| New losses greater than $4,000,000        |   | $ | 34 |  |   | $ | 10 |  |   | 240 |  |
| New losses $1,000,000-$4,000,000          |   | 35 |  |   | 31 |  |   | 13 |  |
| New losses $250,000-$1,000,000            |   | 56 |  |   | 43 |  |   | 30 |  |
| Case reserve development above $250,000   |   | 48 |  |   | 67 |  |   | (28 | ) |
| Total large losses incurred               |   | 173 |  |   | 151 |  |   | 15 |  |
| Other losses excluding catastrophe losses |   | 252 |  |   | 206 |  |   | 22 |  |
| Catastrophe losses                        |   | 10 |  |   | 89 |  |   | (89 | ) |
| Total losses incurred                     |   | $ | 435 |  |   | $ | 446 |  |   | (2 | ) |
|                                      |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:   |   |   |   |   |   | Pt. Change |
| New losses greater than $4,000,000        |   | 3.8 | % |   | 1.3 | % |   | 2.5 |  |
| New losses $1,000,000-$4,000,000          |   | 3.9 |  |   | 3.9 |  |   | 0.0 |  |
| New losses $250,000-$1,000,000            |   | 6.3 |  |   | 5.5 |  |   | 0.8 |  |
| Case reserve development above $250,000   |   | 5.4 |  |   | 8.3 |  |   | (2.9 | ) |
| Total large loss ratio                    |   | 19.4 |  |   | 19.0 |  |   | 0.4 |  |
| Other losses excluding catastrophe losses |   | 28.4 |  |   | 25.8 |  |   | 2.6 |  |
| Catastrophe losses                        |   | 1.1 |  |   | 11.1 |  |   | (10.0 | ) |
| Total loss ratio                          |   | 48.9 | % |   | 55.9 | % |   | (7.0 | ) |

----

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                        |   | Three months ended March 31, |
|                                                                              |   | 2013 |   | 2012 |   | Change % |
| Earned premiums                                                              |   | $ | 631 |  |   | $ | 568 |  |   | 11 |  |
| Fee revenues                                                                 |   | — |  |   | 1 |  |   | (100 | ) |
| Total revenues                                                               |   | 631 |  |   | 569 |  |   | 11 |  |
| Loss and loss expenses from:                                                 |   |   |  |   |   |  |   |   |  |
| Current accident year before catastrophe losses                              |   | 370 |  |   | 386 |  |   | (4 | ) |
| Current accident year catastrophe losses                                     |   | 7 |  |   | 52 |  |   | (87 | ) |
| Prior accident years before catastrophe losses                               |   | (8 | ) |   | (77 | ) |   | (90 | ) |
| Prior accident years catastrophe losses                                      |   | (4 | ) |   | (13 | ) |   | (69 | ) |
| Loss and loss expenses                                                       |   | 365 |  |   | 348 |  |   | 5 |  |
| Underwriting expenses                                                        |   | 208 |  |   | 187 |  |   | 11 |  |
| Underwriting profit                                                          |   | $ | 58 |  |   | $ | 34 |  |   | 71 |  |
|                                                                         |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                      |   |   |   |   |   | Pt. Change |
| Current accident year before catastrophe losses                              |   | 58.6 |  % |   | 67.9 |  % |   | (9.3 | ) |
| Current accident year catastrophe losses                                     |   | 1.1 |  |   | 9.1 |  |   | (8.0 | ) |
| Prior accident years before catastrophe losses                               |   | (1.2 | ) |   | (13.6 | ) |   | 12.4 |  |
| Prior accident years catastrophe losses                                      |   | (0.7 | ) |   | (2.3 | ) |   | 1.6 |  |
| Loss and loss expenses                                                       |   | 57.8 |  % |   | 61.1 |  % |   | (3.3 | ) |
| Underwriting expenses                                                        |   | 33.0 |  |   | 33.1 |  |   | (0.1 | ) |
| Combined ratio                                                               |   | 90.8 |  % |   | 94.2 |  |   | (3.4 | ) |
|                                                                         |   |   |   |   |   |   |
| Combined ratio:                                                              |   | 90.8 |  % |   | 94.2 |  % |   | (3.4 | ) |
| Contribution from catastrophe losses and prior years reserve development     |   | (0.8 | ) |   | (6.8 | ) |   | 6.0 |  |
| Combined ratio before catastrophe losses and prior years reserve development |   | 91.6 |  % |   | 101.0 |  % |   | (9.4 | ) |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Premiums – Commercial lines earned premiums and net written premiums grew at a double-digit pace during the first three months of 2013 primarily due to higher renewal premiums that continued to reflect improved pricing. Higher new business written premiums also contributed to premium growth, reflecting better pricing as well as our premium growth initiatives. The premiums table below analyzes the primary components of earned premiums. We continue to use predictive analytics tools to improve pricing precision while also leveraging our local relationships with agents through the efforts of our teams that work closely with them. We seek to maintain appropriate pricing discipline for both new and renewal business as our agents and underwriters assess account quality to make careful decisions on a case-by-case basis whether to write or renew a policy. |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                |   | Three months ended March 31, |
|                                 |   | 2013 |   | 2012 |   | Change % |
| Agency renewal written premiums      |   | $ | 631 |  |   | $ | 571 |  |   | 11 |  |
| Agency new business written premiums |   | 97 |  |   | 75 |  |   | 29 |  |
| Other written premiums               |   | — |  |   | (20 | ) |   | 100 |  |
| Net written premiums                 |   | 728 |  |   | 626 |  |   | 16 |  |
| Unearned premium change              |   | (97 | ) |   | (58 | ) |   | (67 | ) |
| Earned premiums                      |   | $ | 631 |  |   | $ | 568 |  |   | 11 |  |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Combined ratio – The commercial lines combined ratio for the three months ended March 31, 2013, improved compared with the same period of 2012, reflecting a 6.4 percentage-point reduction in the loss ratio from weather-related natural catastrophes. Lower ratios for current accident year loss and loss expenses before catastrophes reflected higher pricing and recent-year initiatives to improve pricing precision and loss experience. The lower ratios were offset by a lower benefit from favorable reserve development on prior accident years. |

----

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                     |   | Three months ended March 31, |
|                                      |   | 2013 |   | 2012 |   | Change % |
| New losses greater than $4,000,000        |   | $ | 34 |  |   | $ | 10 |  |   | 240 |  |
| New losses $1,000,000-$4,000,000          |   | 30 |  |   | 24 |  |   | 25 |  |
| New losses $250,000-$1,000,000            |   | 41 |  |   | 31 |  |   | 32 |  |
| Case reserve development above $250,000   |   | 42 |  |   | 64 |  |   | (34 | ) |
| Total large losses incurred               |   | 147 |  |   | 129 |  |   | 14 |  |
| Other losses excluding catastrophe losses |   | 150 |  |   | 105 |  |   | 43 |  |
| Catastrophe losses                        |   | 2 |  |   | 39 |  |   | (95 | ) |
| Total losses incurred                     |   | $ | 299 |  |   | $ | 273 |  |   | 10 |  |
|                                      |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:   |   |   |   |   |   | Pt. Change |
| New losses greater than $4,000,000        |   | 5.4 | % |   | 1.9 | % |   | 3.5 |  |
| New losses $1,000,000-$4,000,000          |   | 4.7 |  |   | 4.2 |  |   | 0.5 |  |
| New losses $250,000-$1,000,000            |   | 6.5 |  |   | 5.5 |  |   | 1.0 |  |
| Case reserve development above $250,000   |   | 6.7 |  |   | 11.2 |  |   | (4.5 | ) |
| Total large loss ratio                    |   | 23.3 |  |   | 22.8 |  |   | 0.5 |  |
| Other losses excluding catastrophe losses |   | 23.7 |  |   | 18.4 |  |   | 5.3 |  |
| Catastrophe losses                        |   | 0.3 |  |   | 6.8 |  |   | (6.5 | ) |
| Total loss ratio                          |   | 47.3 | % |   | 48.0 | % |   | (0.7 | ) |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                           |   | Three months ended March 31, |
|                                            |   | 2013 |   | 2012 |   | Change % |
| Commercial casualty:                            |   |   |  |   |   |  |   |   |  |
| Written premiums                                |   | $ | 237 |  |   | $ | 202 |  |   | 17 |  |
| Earned premiums                                 |   | 204 |  |   | 181 |  |   | 13 |  |
| Current accident year before catastrophe losses |   | 60.8 |  % |   | 70.2 |  % |   |   |  |
| Current accident year catastrophe losses        |   | — |  |   | — |  |   |   |  |
| Prior accident years before catastrophe losses  |   | (11.5 | ) |   | (26.7 | ) |   |   |  |
| Prior accident years catastrophe losses         |   | — |  |   | — |  |   |   |  |
| Total loss and loss expenses ratio              |   | 49.3 |  % |   | 43.5 |  % |   |   |  |
| Commercial property:                            |   |   |  |   |   |  |   |   |  |
| Written premiums                                |   | $ | 166 |  |   | $ | 141 |  |   | 18 |  |
| Earned premiums                                 |   | 147 |  |   | 131 |  |   | 12 |  |
| Current accident year before catastrophe losses |   | 48.9 |  % |   | 57.2 |  % |   |   |  |
| Current accident year catastrophe losses        |   | 2.8 |  |   | 31.4 |  |   |   |  |
| Prior accident years before catastrophe losses  |   | 2.0 |  |   | (4.4 | ) |   |   |  |
| Prior accident years catastrophe losses         |   | (1.9 | ) |   | (5.8 | ) |   |   |  |
| Total loss and loss expenses ratio              |   | 51.8 |  % |   | 78.4 |  % |   |   |  |
| Commercial auto:                                |   |   |  |   |   |  |   |   |  |
| Written premiums                                |   | $ | 135 |  |   | $ | 114 |  |   | 18 |  |
| Earned premiums                                 |   | 114 |  |   | 101 |  |   | 13 |  |
| Current accident year before catastrophe losses |   | 59.6 |  % |   | 73.9 |  % |   |   |  |
| Current accident year catastrophe losses        |   | 0.4 |  |   | 1.4 |  |   |   |  |
| Prior accident years before catastrophe losses  |   | 2.1 |  |   | (11.9 | ) |   |   |  |
| Prior accident years catastrophe losses         |   | (0.2 | ) |   | (0.5 | ) |   |   |  |
| Total loss and loss expenses ratio              |   | 61.9 |  % |   | 62.9 |  % |   |   |  |
| Workers' compensation:                          |   |   |  |   |   |  |   |   |  |
| Written premiums                                |   | $ | 113 |  |   | $ | 93 |  |   | 22 |  |
| Earned premiums                                 |   | 88 |  |   | 81 |  |   | 9 |  |
| Current accident year before catastrophe losses |   | 71.8 |  % |   | 82.7 |  % |   |   |  |
| Current accident year catastrophe losses        |   | — |  |   | — |  |   |   |  |
| Prior accident years before catastrophe losses  |   | (8.0 | ) |   | (19.0 | ) |   |   |  |
| Prior accident years catastrophe losses         |   | — |  |   | — |  |   |   |  |
| Total loss and loss expenses ratio              |   | 63.8 |  % |   | 63.7 |  % |   |   |  |
| Specialty packages:                             |   |   |  |   |   |  |   |   |  |
| Written premiums                                |   | $ | 40 |  |   | $ | 40 |  |   | 0 |  |
| Earned premiums                                 |   | 39 |  |   | 38 |  |   | 3 |  |
| Current accident year before catastrophe losses |   | 73.5 |  % |   | 66.4 |  % |   |   |  |
| Current accident year catastrophe losses        |   | 6.4 |  |   | 24.8 |  |   |   |  |
| Prior accident years before catastrophe losses  |   | (2.5 | ) |   | (14.0 | ) |   |   |  |
| Prior accident years catastrophe losses         |   | (3.4 | ) |   | (12.6 | ) |   |   |  |
| Total loss and loss expenses ratio              |   | 74.0 |  % |   | 64.6 |  % |   |   |  |
|                                            |   |   |   |   |   |   |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                           |   | Three months ended March 31, |
|                                            |   | 2013 |   | 2012 |   | Change % |
| Surety and executive risk:                      |   |   |  |   |   |  |   |   |  |
| Written premiums                                |   | $ | 26 |  |   | $ | 27 |  |   | (4 | ) |
| Earned premiums                                 |   | 29 |  |   | 27 |  |   | 7 |  |
| Current accident year before catastrophe losses |   | 44.5 |  % |   | 49.2 |  % |   |   |  |
| Current accident year catastrophe losses        |   | — |  |   | — |  |   |   |  |
| Prior accident years before catastrophe losses  |   | 60.8 |  |   | 34.8 |  |   |   |  |
| Prior accident years catastrophe losses         |   | — |  |   | — |  |   |   |  |
| Total loss and loss expenses ratio              |   | 105.3 |  % |   | 84.0 |  % |   |   |  |
| Machinery and equipment:                        |   |   |  |   |   |  |   |   |  |
| Written premiums                                |   | $ | 11 |  |   | $ | 9 |  |   | 22 |  |
| Earned premiums                                 |   | 10 |  |   | 9 |  |   | 11 |  |
| Current accident year before catastrophe losses |   | 15.0 |  % |   | 36.0 |  % |   |   |  |
| Current accident year catastrophe losses        |   | — |  |   | — |  |   |   |  |
| Prior accident years before catastrophe losses  |   | 8.0 |  |   | 3.2 |  |   |   |  |
| Prior accident years catastrophe losses         |   | — |  |   | — |  |   |   |  |
| Total loss and loss expenses ratio              |   | 23.0 |  % |   | 39.2 |  % |   |   |  |

----

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                        |   | Three months ended March 31, |
|                                                                         |   | 2013 |   | 2012 |   | Change % |
| Earned premiums                                                              |   | $ | 231 |  |   | $ | 209 |  |   | 11 |  |
|                                                                         |   |   |   |   |   |   |
| Loss and loss expenses from:                                                 |   |   |  |   |   |  |   |   |  |
| Current accident year before catastrophe losses                              |   | 126 |  |   | 142 |  |   | (11 | ) |
| Current accident year catastrophe losses                                     |   | 11 |  |   | 58 |  |   | (81 | ) |
| Prior accident years before catastrophe losses                               |   | 7 |  |   | (17 | ) |   | nm |  |
| Prior accident years catastrophe losses                                      |   | (3 | ) |   | (9 | ) |   | 67 |  |
| Loss and loss expenses                                                       |   | 141 |  |   | 174 |  |   | (19 | ) |
| Underwriting expenses                                                        |   | 70 |  |   | 57 |  |   | 23 |  |
| Underwriting profit (loss)                                                   |   | $ | 20 |  |   | $ | (22 | ) |   | nm |  |
|                                                                         |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                      |   |   |   |   |   | Pt. Change |
| Current accident year before catastrophe losses                              |   | 54.7 |  % |   | 67.9 |  % |   | (13.2 | ) |
| Current accident year catastrophe losses                                     |   | 4.8 |  |   | 28.2 |  |   | (23.4 | ) |
| Prior accident years before catastrophe losses                               |   | 3.1 |  |   | (7.8 | ) |   | 10.9 |  |
| Prior accident years catastrophe losses                                      |   | (1.3 | ) |   | (4.7 | ) |   | 3.4 |  |
| Loss and loss expenses                                                       |   | 61.3 |  |   | 83.6 |  |   | (22.3 | ) |
| Underwriting expenses                                                        |   | 30.3 |  |   | 27.3 |  |   | 3.0 |  |
| Combined ratio                                                               |   | 91.6 |  % |   | 110.9 |  % |   | (19.3 | ) |
|                                                                         |   |   |   |   |   |   |
| Combined ratio:                                                              |   | 91.6 |  % |   | 110.9 |  % |   | (19.3 | ) |
| Contribution from catastrophe losses and prior years reserve development     |   | 6.6 |  |   | 15.7 |  |   | (9.1 | ) |
| Combined ratio before catastrophe losses and prior years reserve development |   | 85.0 |  % |   | 95.2 |  % |   | (10.2 | ) |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Premiums – Personal lines earned premiums and net written premiums for the three months ended March 31, 2013, continued to grow primarily due to higher renewal premiums. The increase reflected improved pricing and a steady, high level of policy retention. Higher new business written premiums also contributed to premium growth, reflecting better pricing as well as our premium growth initiatives. The premiums table below analyzes the primary components of earned premiums. |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                |   | Three months ended March 31, |
|                                 |   | 2013 |   | 2012 |   | Change % |
| Agency renewal written premiums      |   | $ | 195 |  |   | $ | 175 |  |   | 11 |  |
| Agency new business written premiums |   | 28 |  |   | 24 |  |   | 17 |  |
| Other written premiums               |   | (8 | ) |   | (6 | ) |   | (33 | ) |
| Net written premiums                 |   | 215 |  |   | 193 |  |   | 11 |  |
| Unearned premium change              |   | 16 |  |   | 16 |  |   | 0 |  |
| Earned premiums                      |   | $ | 231 |  |   | $ | 209 |  |   | 11 |  |

|         |                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Combined ratio – The personal lines combined ratio for the three months ended March 31, 2013, improved compared with the same period of 2012, primarily due to weather-related catastrophe losses that were 20.0 percentage points lower. |

----

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                     |   | Three months ended March 31, |
|                                      |   | 2013 |   | 2012 |   | Change % |
| New losses greater than $4,000,000        |   | $ | — |  |   | $ | — |  |   | nm |  |
| New losses $1,000,000-$4,000,000          |   | 4 |  |   | 5 |  |   | (20 | ) |
| New losses $250,000-$1,000,000            |   | 12 |  |   | 8 |  |   | 50 |  |
| Case reserve development above $250,000   |   | 6 |  |   | 2 |  |   | 200 |  |
| Total large losses incurred               |   | 22 |  |   | 15 |  |   | 47 |  |
| Other losses excluding catastrophe losses |   | 94 |  |   | 95 |  |   | (1 | ) |
| Catastrophe losses                        |   | 8 |  |   | 49 |  |   | (84 | ) |
| Total losses incurred                     |   | $ | 124 |  |   | $ | 159 |  |   | (22 | ) |
|                                      |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:   |   |   |   |   |   | Pt. Change |
| New losses greater than $4,000,000        |   | 0.0 | % |   | 0.0 | % |   | 0.0 |  |
| New losses $1,000,000-$4,000,000          |   | 1.6 |  |   | 2.3 |  |   | (0.7 | ) |
| New losses $250,000-$1,000,000            |   | 5.4 |  |   | 4.0 |  |   | 1.4 |  |
| Case reserve development above $250,000   |   | 2.4 |  |   | 0.9 |  |   | 1.5 |  |
| Total large losses incurred               |   | 9.4 |  |   | 7.2 |  |   | 2.2 |  |
| Other losses excluding catastrophe losses |   | 40.9 |  |   | 45.7 |  |   | (4.8 | ) |
| Catastrophe losses                        |   | 3.3 |  |   | 23.3 |  |   | (20.0 | ) |
| Total loss ratio                          |   | 53.6 | % |   | 76.2 | % |   | (22.6 | ) |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                           |   | Three months ended March 31, |
|                                            |   | 2013 |   | 2012 |   | Change % |
| Personal auto:                                  |   |   |  |   |   |  |   |   |
| Written premiums                                |   | $ | 100 |  |   | $ | 91 |  |   | 10 |
| Earned premiums                                 |   | 107 |  |   | 98 |  |   | 9 |
| Current accident year before catastrophe losses |   | 66.9 |  % |   | 73.5 |  % |   |   |
| Current accident year catastrophe losses        |   | 1.4 |  |   | 5.1 |  |   |   |
| Prior accident years before catastrophe losses  |   | 7.9 |  |   | (8.1 | ) |   |   |
| Prior accident years catastrophe losses         |   | (0.3 | ) |   | (0.8 | ) |   |   |
| Total loss and loss expenses ratio              |   | 75.9 |  % |   | 69.7 |  % |   |   |
| Homeowner:                                      |   |   |  |   |   |  |   |   |
| Written premiums                                |   | $ | 89 |  |   | $ | 77 |  |   | 16 |
| Earned premiums                                 |   | 96 |  |   | 84 |  |   | 14 |
| Current accident year before catastrophe losses |   | 40.6 |  % |   | 63.0 |  % |   |   |
| Current accident year catastrophe losses        |   | 9.4 |  |   | 60.4 |  |   |   |
| Prior accident years before catastrophe losses  |   | (0.7 | ) |   | (2.9 | ) |   |   |
| Prior accident years catastrophe losses         |   | (2.4 | ) |   | (9.8 | ) |   |   |
| Total loss and loss expenses ratio              |   | 46.9 |  % |   | 110.7 |  % |   |   |
| Other personal:                                 |   |   |  |   |   |  |   |   |
| Written premiums                                |   | $ | 26 |  |   | $ | 25 |  |   | 4 |
| Earned premiums                                 |   | 28 |  |   | 27 |  |   | 4 |
| Current accident year before catastrophe losses |   | 56.7 |  % |   | 63.1 |  % |   |   |
| Current accident year catastrophe losses        |   | 1.5 |  |   | 11.7 |  |   |   |
| Prior accident years before catastrophe losses  |   | (1.5 | ) |   | (22.1 | ) |   |   |
| Prior accident years catastrophe losses         |   | (1.2 | ) |   | (3.1 | ) |   |   |
| Total loss and loss expenses ratio              |   | 55.5 |  % |   | 49.6 |  % |   |   |

----

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                        |   | Three months ended March 31, |
|                                                                         |   | 2013 |   | 2012 |   | Change % |
| Earned premiums                                                              |   | $ | 27 |  |   | $ | 21 |  |   | 29 |  |
| Loss and loss expenses from:                                                 |   |   |  |   |   |  |   |   |  |
| Current accident year before catastrophe losses                              |   | 20 |  |   | 16 |  |   | 25 |  |
| Current accident year catastrophe losses                                     |   | — |  |   | 1 |  |   | (100 | ) |
| Prior accident years before catastrophe losses                               |   | (2 | ) |   | — |  |   | nm |  |
| Prior accident years catastrophe losses                                      |   | — |  |   | — |  |   | — |  |
| Loss and loss expenses                                                       |   | 18 |  |   | 17 |  |   | 6 |  |
| Underwriting expenses                                                        |   | 9 |  |   | 7 |  |   | 29 |  |
| Underwriting profit (loss)                                                   |   | $ | — |  |   | $ | (3 | ) |   | 100 |  |
|                                                                         |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                      |   |   |   |   |   | Pt. Change |
| Current accident year before catastrophe losses                              |   | 73.6 |  |   | 78.3 |  |   | (4.7 | ) |
| Current accident year catastrophe losses                                     |   | 0.1 |  |   | 2.4 |  |   | (2.3 | ) |
| Prior accident years before catastrophe losses                               |   | (8.8 | ) |   | (0.4 | ) |   | (8.4 | ) |
| Prior accident years catastrophe losses                                      |   | 0.3 |  |   | 1.3 |  |   | (1.0 | ) |
| Loss and loss expenses                                                       |   | 65.2 |  |   | 81.6 |  |   | (16.4 | ) |
| Underwriting expenses                                                        |   | 32.8 |  |   | 32.0 |  |   | 0.8 |  |
| Combined ratio                                                               |   | 98.0 |  % |   | 113.6 |  % |   | (15.6 | ) |
|                                                                         |   |   |   |   |   |   |
| Combined ratio:                                                              |   | 98.0 |  % |   | 113.6 |  % |   | (15.6 | ) |
| Contribution from catastrophe losses and prior years reserve development     |   | (8.4 | ) |   | 3.3 |  |   | (11.7 | ) |
| Combined ratio before catastrophe losses and prior years reserve development |   | 106.4 |  % |   | 110.3 |  % |   | (3.9 | ) |

|         |                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Premiums – Excess and surplus lines earned premiums and net written premiums continued to grow during the first three months of 2013. Growth in renewal written premiums contributed most of the increase. |

----

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)         |   | Three months ended March 31, |
|                          |   | 2013 |   | 2012 |   | Change % |
| Renewal written premiums      |   | $ | 19 |  |   | $ | 16 |  |   | 19 |  |
| New business written premiums |   | 10 |  |   | 9 |  |   | 11 |  |
| Other written premiums        |   | (2 | ) |   | (1 | ) |   | (100 | ) |
| Net written premiums          |   | 27 |  |   | 24 |  |   | 13 |  |
| Unearned premium change       |   | — |  |   | (3 | ) |   | 100 |  |
| Earned premiums               |   | $ | 27 |  |   | $ | 21 |  |   | 29 |  |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Combined ratio – The excess and surplus lines combined ratio for the first quarter of 2013 improved 15.6 percentage points compared with the first quarter of 2012, primarily due to lower current accident year losses and loss expenses before catastrophe losses and more favorable net reserve development on prior accident years. The favorable development was concentrated in accident year 2011, reflecting a large net reduction in case loss reserves for certain claims. |

----

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                     |   | Three months ended March 31, |
|                                      |   | 2013 |   | 2012 |   | Change % |
| New losses greater than $4,000,000        |   | $ | — |  |   | $ | — |  |   | nm |  |
| New losses $1,000,000-$4,000,000          |   | 1 |  |   | 2 |  |   | (50 | ) |
| New losses $250,000-$1,000,000            |   | 3 |  |   | 4 |  |   | (25 | )% |
| Case reserve development above $250,000   |   | — |  |   | 1 |  |   | (100 | )% |
| Total large losses incurred               |   | 4 |  |   | 7 |  |   | (43 | )% |
| Other losses excluding catastrophe losses |   | 8 |  |   | 6 |  |   | 33 |  % |
| Catastrophe losses                        |   | — |  |   | 1 |  |   | (100 | )% |
| Total losses incurred                     |   | $ | 12 |  |   | $ | 14 |  |   | (14 | )% |
|                                      |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:   |   |   |   |   |   | Pt. Change |
| New losses greater than $4,000,000        |   | 0.0 | % |   | 0.0 | % |   | 0.0 |  |
| New losses $1,000,000-$4,000,000          |   | 4.2 |  |   | 11.1 |  |   | (6.9 | ) |
| New losses $250,000-$1,000,000            |   | 11.1 |  |   | 17.7 |  |   | (6.6 | ) |
| Case reserve development above $250,000   |   | 1.0 |  |   | 5.6 |  |   | (4.6 | ) |
| Total large losses incurred               |   | 16.3 |  |   | 34.4 |  |   | (18.1 | ) |
| Other losses excluding catastrophe losses |   | 30.5 |  |   | 27.6 |  |   | 2.9 |  |
| Catastrophe losses                        |   | 0.4 |  |   | 3.7 |  |   | (3.3 | ) |
| Total loss ratio                          |   | 47.2 | % |   | 65.7 | % |   | (18.5 | ) |

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                    |   | Three months ended March 31, |
|                                             |   | 2013 |   | 2012 |   | Change % |
| Earned premiums                                  |   | $ | 42 |  |   | $ | 41 |  |   | 2 |  |
| Separate account investment management fees      |   | 1 |  |   | — |  |   | nm |  |
| Total revenues                                   |   | 43 |  |   | 41 |  |   | 5 |  |
| Contract holders' benefits incurred              |   | 44 |  |   | 43 |  |   | 2 |  |
| Investment interest credited to contract holders |   | (21 | ) |   | (21 | ) |   | — |  |
| Operating expenses incurred                      |   | 13 |  |   | 22 |  |   | (41 | ) |
| Total benefits and expenses                      |   | 36 |  |   | 44 |  |   | (18 | ) |
| Life insurance segment profit (loss)             |   | $ | 7 |  |   | $ | (3 | ) |   | nm |  |

|         |                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Revenues – Revenues increased for the three months ended March 31, 2013, primarily due to higher earned premiums from term life insurance products. |

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                         |   | Three months ended March 31, |
|                                                               |   | 2013 |   | 2012 |   | Change % |
| Term life insurance                                           |   | $ | 29 |  |   | $ | 27 |  |   | 7 |  |
| Universal life insurance                                      |   | 5 |  |   | 7 |  |   | (29 | ) |
| Other life insurance, annuity, and disability income products |   | 8 |  |   | 7 |  |   | 14 |  |
| Net earned premiums                                           |   | $ | 42 |  |   | $ | 41 |  |   | 2 |  |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Profitability – Our life insurance segment typically reports a small profit or loss on a GAAP basis because profits from investment income spreads are included in our investment segment results. We include only investment income credited to contract holders (including interest assumed in life insurance policy reserve calculations) in our life insurance segment results. A gain of $7 million for our life insurance segment in the first three months of 2013 compared with a loss of $3 million for the same period of 2012, primarily due to decreased operating expenses. |

----

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                |   | Three months ended March 31, |
|                                                              |   | 2013 |   | 2012 |   | Change % |
| Total investment income, net of expenses, pretax             |   | $ | 128 |  |   | $ | 131 |  |   | (2 | ) |
| Investment interest credited to contract holders             |   | (21 | ) |   | (21 | ) |   | 0 |  |
| Realized investment gains and losses summary:                |   |   |  |   |   |  |   |   |  |
| Realized investment gains and losses                         |   | 42 |  |   | 25 |  |   | 68 |  |
| Change in fair value of securities with embedded derivatives |   | 1 |  |   | 4 |  |   | (75 | ) |
| Other-than-temporary impairment charges                      |   | (2 | ) |   | (16 | ) |   | 88 |  |
| Total realized investment gains and losses                   |   | 41 |  |   | 13 |  |   |   |
| Investment operations profit                                 |   | $ | 148 |  |   | $ | 123 |  |   | 20 |  |

----

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                          |   | Three months ended March 31, |
|                                                   |   | 2013 |   | 2012 |   | Change % |
| Investment income:                                     |   |   |  |   |   |  |   |   |  |
| Interest                                               |   | $ | 102 |  |   | $ | 106 |  |   | (4 | ) |
| Dividends                                              |   | 27 |  |   | 26 |  |   | 4 |  |
| Other                                                  |   | 1 |  |   | 1 |  |   | 0 |  |
| Investment expenses                                    |   | (2 | ) |   | (2 | ) |   | 0 |  |
| Total investment income, net of expenses, pretax       |   | 128 |  |   | 131 |  |   | (2 | ) |
| Income taxes                                           |   | (31 | ) |   | (32 | ) |   | 3 |  |
| Total investment income, net of expenses, after-tax    |   | $ | 97 |  |   | $ | 99 |  |   | (2 | ) |
|                                                   |   |   |   |   |   |   |
| Effective tax rate                                     |   | 24.3 | % |   | 24.4 | % |   |   |  |
|                                                   |   |   |   |   |   |   |
| Average invested assets plus cash and cash equivalents |   | $ | 12,361 |  |   | $ | 11,689 |  |   |   |  |
|                                                   |   |   |   |   |   |   |
| Average yield pretax                                   |   | 4.14 | % |   | 4.48 | % |   |   |  |
| Average yield after-tax                                |   | 3.14 | % |   | 3.39 | % |   |   |  |
|                                                   |   |   |   |   |   |   |
| Effective fixed-maturity tax rate                      |   | 27.0 | % |   | 26.9 | % |   |   |  |
|                                                   |   |   |   |   |   |   |
| Average fixed-maturity at amortized cost               |   | $ | 8,273 |  |   | $ | 8,148 |  |   |   |  |
|                                                   |   |   |   |   |   |   |
| Average fixed-maturity yield pretax                    |   | 4.93 | % |   | 5.20 | % |   |   |  |
| Average fixed-maturity yield after-tax                 |   | 3.60 | % |   | 3.80 | % |   |   |  |

|         |                                                                                             |
|---------|---------------------------------------------------------------------------------------------|
| • | $37 million in net gains from the sale of various common and preferred stock holdings. |

|         |                                                                       |
|---------|-----------------------------------------------------------------------|
| • | $2 million in net gains from fixed-maturity security sales and calls. |

|         |                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $4 million in other net realized gains, including $1 million in gains from changes in fair value of securities with embedded derivatives. |

|         |                                                                                    |
|---------|------------------------------------------------------------------------------------|
| • | $2 million in OTTI charges to write down five fixed-maturity securities. |

----

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |
| (In millions)          |   | Three months ended March 31, |
|                   |   | 2013 |   | 2012 |
| Fixed maturities       |   |   |  |   |   |  |
| Utilities              |   | $ | 1 |  |   | $ | — |  |
| Municipal              |   | 1 |  |   | — |  |
| Total fixed maturities |   | 2 |  |   | — |  |
| Common equities        |   |   |  |   |   |  |
| Energy                 |   | $ | — |  |   | $ | 1 |  |
| Industrial             |   | — |  |   | 6 |  |
| Consumer discretionary |   | — |  |   | 9 |  |
| Total common equities  |   | — |  |   | 16 |  |
| Total                  |   | $ | 2 |  |   | $ | 16 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                         |   | Three months ended March 31, |
|                                  |   | 2013 |   | 2012 |   | Change % |
| Interest and fees on loans and leases |   | $ | 2 |  |   | $ | 2 |  |   | — |  |
| Other revenues                        |   | — |  |   | — |  |   | nm |  |
| Total revenues                        |   | 2 |  |   | 2 |  |   | — |  |
| Interest expense                      |   | 13 |  |   | 14 |  |   | (7 | ) |
| Operating expenses                    |   | 5 |  |   | 5 |  |   | — |  |
| Total expenses                        |   | 18 |  |   | 19 |  |   | (5 | ) |
| Other loss                            |   | $ | (16 | ) |   | $ | (17 | ) |   | 6 |  |

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                            |   | Three months ended March 31, |
|                                             |   | 2013 |   | 2012 |   | Change % |
| Premiums collected                               |   | $ | 960 |  |   | $ | 851 |  |   | 13 |  |
| Loss and loss expenses paid                      |   | (513 | ) |   | (507 | ) |   | 1 |  |
| Commissions and other underwriting expenses paid |   | (370 | ) |   | (300 | ) |   | 23 |  |
| Insurance subsidiary cash flow from underwriting |   | 77 |  |   | 44 |  |   | 75 |  |
| Investment income received                       |   | 87 |  |   | 90 |  |   | (3 | ) |
| Insurance underwriting cash flow                 |   | $ | 164 |  |   | $ | 134 |  |   | 22 |  |

----

|         |                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Commissions – Commissions paid were $245 million in the first three months of 2013. Commission payments generally track with written premiums, except for annual profit-sharing commissions typically paid during the first quarter of the year. |

|         |                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Other underwriting expenses – Many of our underwriting expenses are not contractual obligations, but reflect the ongoing expenses of our business. Noncommission underwriting expenses paid were $125 million in the first three months of 2013. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In addition to contractual obligations for hardware and software, we anticipate capitalizing approximately $5 million in spending for key technology initiatives in 2013. Capitalized development costs related to key technology initiatives were $1 million in the first three months of 2013. These activities are conducted at our discretion, and we have no material contractual obligations for activities planned as part of these projects. |

----

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)        |   | Loss reserves |   | Loss |   | Total |   |   |
|                      |   | Case |   | IBNR |   | expense |   | gross |   | Percent |
|                      |   | reserves |   | reserves |   | reserves |   | reserves |   | of total |
| At March 31, 2013         |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Commercial lines          |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Commercial casualty       |   | $ | 807 |  |   | $ | 364 |  |   | $ | 502 |  |   | $ | 1,673 |  |   | 40.1 | % |
| Commercial property       |   | 190 |  |   | 19 |  |   | 37 |  |   | 246 |  |   | 5.9 |  |
| Commercial auto           |   | 244 |  |   | 37 |  |   | 67 |  |   | 348 |  |   | 8.3 |  |
| Workers' compensation     |   | 420 |  |   | 476 |  |   | 98 |  |   | 994 |  |   | 23.8 |  |
| Specialty packages        |   | 124 |  |   | 3 |  |   | 27 |  |   | 154 |  |   | 3.7 |  |
| Surety and executive risk |   | 141 |  |   | 7 |  |   | 74 |  |   | 222 |  |   | 5.3 |  |
| Machinery and equipment   |   | — |  |   | 2 |  |   | 2 |  |   | 4 |  |   | 0.1 |  |
| Subtotal                  |   | 1,926 |  |   | 908 |  |   | 807 |  |   | 3,641 |  |   | 87.2 |  |
| Personal lines            |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Personal auto             |   | 142 |  |   | (10 | ) |   | 54 |  |   | 186 |  |   | 4.5 |  |
| Homeowner                 |   | 75 |  |   | 21 |  |   | 24 |  |   | 120 |  |   | 2.9 |  |
| Other personal            |   | 44 |  |   | 42 |  |   | 5 |  |   | 91 |  |   | 2.2 |  |
| Subtotal                  |   | 261 |  |   | 53 |  |   | 83 |  |   | 397 |  |   | 9.6 |  |
| Excess and surplus lines  |   | 63 |  |   | 40 |  |   | 32 |  |   | 135 |  |   | 3.2 |  |
| Total                     |   | $ | 2,250 |  |   | $ | 1,001 |  |   | $ | 922 |  |   | $ | 4,173 |  |   | 100.0 | % |
| At December 31, 2012 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Commercial lines          |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Commercial casualty       |   | $ | 816 |  |   | $ | 348 |  |   | $ | 503 |  |   | $ | 1,667 |  |   | 40.0 | % |
| Commercial property       |   | 197 |  |   | 22 |  |   | 38 |  |   | 257 |  |   | 6.2 |  |
| Commercial auto           |   | 252 |  |   | 35 |  |   | 66 |  |   | 353 |  |   | 8.5 |  |
| Workers' compensation     |   | 433 |  |   | 473 |  |   | 97 |  |   | 1,003 |  |   | 24.1 |  |
| Specialty packages        |   | 129 |  |   | 3 |  |   | 27 |  |   | 159 |  |   | 3.8 |  |
| Surety and executive risk |   | 121 |  |   | 6 |  |   | 74 |  |   | 201 |  |   | 4.8 |  |
| Machinery and equipment   |   | 1 |  |   | 2 |  |   | 2 |  |   | 5 |  |   | 0.1 |  |
| Subtotal                  |   | 1,949 |  |   | 889 |  |   | 807 |  |   | 3,645 |  |   | 87.5 |  |
| Personal lines            |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Personal auto             |   | 140 |  |   | (10 | ) |   | 53 |  |   | 183 |  |   | 4.4 |  |
| Homeowner                 |   | 81 |  |   | 21 |  |   | 27 |  |   | 129 |  |   | 3.1 |  |
| Other personal            |   | 39 |  |   | 42 |  |   | 5 |  |   | 86 |  |   | 2.1 |  |
| Subtotal                  |   | 260 |  |   | 53 |  |   | 85 |  |   | 398 |  |   | 9.6 |  |
| Excess and surplus lines  |   | 61 |  |   | 35 |  |   | 30 |  |   | 126 |  |   | 2.9 |  |
| Total                     |   | $ | 2,270 |  |   | $ | 977 |  |   | $ | 922 |  |   | $ | 4,169 |  |   | 100.0 | % |

----

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)          |   | At March 31, 2013 |   | At December 31, 2012 |
|                        |   | Cost oramortized cost |   | Percent tototal |   | Fair value |   | Percent tototal |   | Cost oramortized cost |   | Percentto total |   | Fair value |   | Percent tototal |
| Taxable fixed maturities    |   | $ | 5,610 |  |   | 52.2 | % |   | $ | 6,267 |  |   | 48.3 | % |   | $ | 5,473 |  |   | 51.7 | % |   | $ | 6,137 |  |   | 49.2 | % |
| Tax-exempt fixed maturities |   | 2,713 |  |   | 25.3 |  |   | 2,902 |  |   | 22.4 |  |   | 2,749 |  |   | 26.0 |  |   | 2,956 |  |   | 23.7 |  |
| Common equities             |   | 2,331 |  |   | 21.7 |  |   | 3,675 |  |   | 28.3 |  |   | 2,270 |  |   | 21.4 |  |   | 3,238 |  |   | 26.0 |  |
| Preferred equities          |   | 85 |  |   | 0.8 |  |   | 126 |  |   | 1.0 |  |   | 99 |  |   | 0.9 |  |   | 135 |  |   | 1.1 |  |
| Total                       |   | $ | 10,739 |  |   | 100.0 | % |   | $ | 12,970 |  |   | 100.0 | % |   | $ | 10,591 |  |   | 100.0 | % |   | $ | 12,466 |  |   | 100.0 | % |

----

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                              |   | At March 31, 2013 |   | At December 31, 2012 |
|                                                       |   | Fair |   | Percent |   | Fair |   | Percent |
|                                                       |   | value |   | to total |   | value |   | to total |
| Moody's Ratings and Standard & Poor's Ratings combined |   |   |  |   |   |  |   |   |  |   |   |  |
| Aaa, Aa, A, AAA, AA, A                                     |   | $ | 5,498 |  |   | 60.0 | % |   | $ | 5,544 |  |   | 61.0 | % |
| Baa, BBB                                                   |   | 3,244 |  |   | 35.4 |  |   | 3,180 |  |   | 35.0 |  |
| Ba, BB                                                     |   | 206 |  |   | 2.2 |  |   | 168 |  |   | 1.8 |  |
| B, B                                                       |   | 16 |  |   | 0.2 |  |   | 20 |  |   | 0.2 |  |
| Caa, CCC, Ca                                               |   | 0 |  |   | 0.0 |  |   | 2 |  |   | 0.0 |  |
| Daa, Da, D                                                 |   | 2 |  |   | 0.0 |  |   | 1 |  |   | 0.0 |  |
| Non-rated                                                  |   | 203 |  |   | 2.2 |  |   | 178 |  |   | 2.0 |  |
| Total                                                      |   | $ | 9,169 |  |   | 100.0 | % |   | $ | 9,093 |  |   | 100.0 | % |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |
|                                     |   | At March 31, 2013 |   |   | At December 31, 2012 |   |
| Weighted average yield-to-amortized cost |   | 5.0 | % |   | 5.0 | % |
| Weighted average maturity                |   | 6.2 | yrs |   | 6.3 | yrs |
| Effective duration                       |   | 4.2 | yrs |   | 4.2 | yrs |

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |
| (In millions)                                     |   | At March 31, 2013 |   | At December 31, 2012 |
| Investment-grade corporate                        |   | $ | 5,465 |  |   | $ | 5,388 |  |
| States, municipalities and political subdivisions |   | 336 |  |   | 334 |  |
| Below investment-grade corporate                  |   | 212 |  |   | 182 |  |
| Government sponsored enterprises                  |   | 167 |  |   | 164 |  |
| Convertibles and bonds with warrants attached     |   | 27 |  |   | 31 |  |
| United States government                          |   | 8 |  |   | 7 |  |
| Foreign government                                |   | 13 |  |   | 3 |  |
| Commercial mortgage backed securities             |   | 39 |  |   | 28 |  |
| Total                                             |   | $ | 6,267 |  |   | $ | 6,137 |  |

----

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)        |   | Local issued |   |   |   |   |   |   |   |   |
|                      |   | general obligation |   | Special revenue |   | State issued general |   |   |   | Percent of |
| At March 31, 2013         |   | bonds |   | bonds |   | obligation bonds |   | Total |   | total |
| Texas                     |   | $ | 380 |  |   | $ | 90 |  |   | $ | — |  |   | $ | 470 |  |   | 16.2 | % |
| Indiana                   |   | 13 |  |   | 265 |  |   | — |  |   | 278 |  |   | 9.6 |  |
| Michigan                  |   | 262 |  |   | 12 |  |   | — |  |   | 274 |  |   | 9.4 |  |
| Illinois                  |   | 217 |  |   | 20 |  |   | — |  |   | 237 |  |   | 8.2 |  |
| Ohio                      |   | 132 |  |   | 95 |  |   | — |  |   | 227 |  |   | 7.8 |  |
| Washington                |   | 175 |  |   | 36 |  |   | 2 |  |   | 213 |  |   | 7.3 |  |
| Wisconsin                 |   | 103 |  |   | 27 |  |   | 2 |  |   | 132 |  |   | 4.5 |  |
| Pennsylvania              |   | 86 |  |   | 8 |  |   | — |  |   | 94 |  |   | 3.2 |  |
| Florida                   |   | 21 |  |   | 65 |  |   | — |  |   | 86 |  |   | 3.0 |  |
| Arizona                   |   | 57 |  |   | 26 |  |   | — |  |   | 83 |  |   | 2.9 |  |
| Colorado                  |   | 45 |  |   | 19 |  |   | — |  |   | 64 |  |   | 2.2 |  |
| New York                  |   | 32 |  |   | 23 |  |   | 4 |  |   | 59 |  |   | 2.0 |  |
| New Jersey                |   | 38 |  |   | 17 |  |   | — |  |   | 55 |  |   | 1.9 |  |
| Kansas                    |   | 28 |  |   | 21 |  |   | — |  |   | 49 |  |   | 1.7 |  |
| Utah                      |   | 24 |  |   | 20 |  |   | — |  |   | 44 |  |   | 1.5 |  |
| All other states          |   | 297 |  |   | 237 |  |   | 3 |  |   | 537 |  |   | 18.6 |  |
| Total                     |   | $ | 1,910 |  |   | $ | 981 |  |   | $ | 11 |  |   | $ | 2,902 |  |   | 100.0 | % |
| At December 31, 2012 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Texas                     |   | $ | 398 |  |   | $ | 95 |  |   | $ | — |  |   | $ | 493 |  |   | 16.7 | % |
| Indiana                   |   | 15 |  |   | 286 |  |   | — |  |   | 301 |  |   | 10.2 |  |
| Michigan                  |   | 260 |  |   | 12 |  |   | — |  |   | 272 |  |   | 9.2 |  |
| Illinois                  |   | 226 |  |   | 20 |  |   | — |  |   | 246 |  |   | 8.3 |  |
| Ohio                      |   | 135 |  |   | 96 |  |   | — |  |   | 231 |  |   | 7.8 |  |
| Washington                |   | 174 |  |   | 39 |  |   | 3 |  |   | 216 |  |   | 7.3 |  |
| Wisconsin                 |   | 106 |  |   | 27 |  |   | 3 |  |   | 136 |  |   | 4.6 |  |
| Pennsylvania              |   | 83 |  |   | 8 |  |   | — |  |   | 91 |  |   | 3.1 |  |
| Florida                   |   | 21 |  |   | 65 |  |   | — |  |   | 86 |  |   | 2.9 |  |
| Arizona                   |   | 55 |  |   | 26 |  |   | — |  |   | 81 |  |   | 2.7 |  |
| Colorado                  |   | 45 |  |   | 19 |  |   | — |  |   | 64 |  |   | 2.2 |  |
| New Jersey                |   | 38 |  |   | 17 |  |   | — |  |   | 55 |  |   | 1.9 |  |
| New York                  |   | 29 |  |   | 24 |  |   | — |  |   | 53 |  |   | 1.8 |  |
| Kansas                    |   | 28 |  |   | 21 |  |   | — |  |   | 49 |  |   | 1.7 |  |
| Minnesota                 |   | 36 |  |   | 6 |  |   | — |  |   | 42 |  |   | 1.4 |  |
| All other states          |   | 285 |  |   | 253 |  |   | 2 |  |   | 540 |  |   | 18.2 |  |
| Total                     |   | $ | 1,934 |  |   | $ | 1,014 |  |   | $ | 8 |  |   | $ | 2,956 |  |   | 100.0 | % |

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)        |   | Interest Rate Shift in Basis Points |
|                      |   | -200 |   | -100 |   | — |   | 100 |   | 200 |
| At March 31, 2013         |   | $ | 9,973 |  |   | $ | 9,562 |  |   | $ | 9,169 |  |   | $ | 8,774 |  |   | $ | 8,386 |  |
| At December 31, 2012 |   | $ | 9,888 |  |   | $ | 9,479 |  |   | $ | 9,093 |  |   | $ | 8,704 |  |   | $ | 8,320 |  |

----

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |
|                   | Percent of Publicly Traded Common Stock Portfolio |
|                   | At March 31, 2013 |   | At December 31, 2012 |
|                   | Cincinnati Financial |   | S&P 500 IndustryWeightings |   | CincinnatiFinancial |   | S&P 500 IndustryWeightings |
| Sector:                |   |  |   |   |  |   |   |  |   |   |  |
| Information technology | 17.1 | % |   | 18.1 | % |   | 16.0 | % |   | 19.1 | % |
| Industrials            | 13.1 |  |   | 10.1 |  |   | 12.9 |  |   | 10.1 |  |
| Healthcare             | 12.0 |  |   | 12.5 |  |   | 12.2 |  |   | 12.0 |  |
| Energy                 | 11.6 |  |   | 10.9 |  |   | 12.0 |  |   | 11.0 |  |
| Financial              | 11.3 |  |   | 15.9 |  |   | 11.2 |  |   | 10.6 |  |
| Consumer staples       | 11.0 |  |   | 11.0 |  |   | 11.7 |  |   | 15.6 |  |
| Consumer discretionary | 10.2 |  |   | 11.6 |  |   | 9.7 |  |   | 11.5 |  |
| Materials              | 5.3 |  |   | 3.4 |  |   | 5.7 |  |   | 3.6 |  |
| Utilities              | 4.7 |  |   | 3.5 |  |   | 4.8 |  |   | 3.4 |  |
| Telecomm services      | 3.7 |  |   | 3.0 |  |   | 3.8 |  |   | 3.1 |  |
| Total                  | 100.0 | % |   | 100.0 | % |   | 100.0 | % |   | 100.0 | % |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 115 of the 117 holdings had fair values between 90 percent and 100 percent of amortized cost at March 31, 2013. Four of these 115 holdings are equity securities that may be subject to OTTI charges taken through earnings should they not recover by the recovery dates we determined. The remaining 111 securities primarily consist of fixed-maturity securities whose current valuation is largely the result of interest rate factors. The fair value of these 115 securities was $426 million, and they accounted for $5 million in unrealized losses. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Two of the 117 holdings had fair values between 70 percent and 90 percent of amortized cost at March 31, 2013. Both are fixed-maturity securities that we believe will continue to pay interest and ultimately principal upon maturity. The issuers of these securities have strong cash flow to service their debt and meet their contractual obligation to make principal payments. The fair value of these two securities was $6 million, and they accounted for $1 million in unrealized losses. |

|         |                                                                                       |
|---------|---------------------------------------------------------------------------------------|
| • | No securities were trading below 70 percent of amortized cost at March 31, 2013. |

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                     |   | Less than 12 months |   | 12 months or more |   | Total |
|                                              |   | Fair |   | Unrealized |   | Fair |   | Unrealized |   | Fair |   | Unrealized |
| At March 31, 2013                                 |   | value |   | losses |   | value |   | losses |   | value |   | losses |
| Fixed maturities:                                 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political subdivisions |   | $ | 103 |  |   | $ | 1 |  |   | $ | — |  |   | $ | — |  |   | $ | 103 |  |   | $ | 1 |  |
| Government-sponsored enterprises                  |   | 107 |  |   | 1 |  |   | — |  |   | — |  |   | 107 |  |   | 1 |  |
| Commercial mortgage-backed securities             |   | 16 |  |   | — |  |   | — |  |   | — |  |   | 16 |  |   | — |  |
| Corporate securities                              |   | 118 |  |   | 1 |  |   | 13 |  |   | 1 |  |   | 131 |  |   | 2 |  |
| Subtotal                                          |   | 344 |  |   | 3 |  |   | 13 |  |   | 1 |  |   | 357 |  |   | 4 |  |
| Equity securities:                                |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                   |   | 74 |  |   | 2 |  |   | — |  |   | — |  |   | 74 |  |   | 2 |  |
| Preferred equities                                |   | 1 |  |   | — |  |   | — |  |   | — |  |   | 1 |  |   | — |  |
| Subtotal                                          |   | 75 |  |   | 2 |  |   | — |  |   | — |  |   | 75 |  |   | 2 |  |
| Total                                             |   | $ | 419 |  |   | $ | 5 |  |   | $ | 13 |  |   | $ | 1 |  |   | $ | 432 |  |   | $ | 6 |  |
| At December 31, 2012                         |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fixed maturities:                                 |   |   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political subdivisions |   | $ | 53 |  |   | $ | 1 |  |   | $ | — |  |   | $ | — |  |   | $ | 53 |  |   | $ | 1 |  |
| Government-sponsored enterprises                  |   | 1 |  |   | — |  |   | — |  |   | — |  |   | 1 |  |   | — |  |
| Corporate securities                              |   | 58 |  |   | 1 |  |   | 17 |  |   | 1 |  |   | 75 |  |   | 2 |  |
| Subtotal                                          |   | 112 |  |   | 2 |  |   | 17 |  |   | 1 |  |   | 129 |  |   | 3 |  |
| Equity securities:                                |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                   |   | 107 |  |   | 9 |  |   | — |  |   | — |  |   | 107 |  |   | 9 |  |
| Preferred equities                                |   | 4 |  |   | 1 |  |   | — |  |   | — |  |   | 4 |  |   | 1 |  |
| Subtotal                                          |   | 111 |  |   | 10 |  |   | — |  |   | — |  |   | 111 |  |   | 10 |  |
| Total                                             |   | $ | 223 |  |   | $ | 12 |  |   | $ | 17 |  |   | $ | 1 |  |   | $ | 240 |  |   | $ | 13 |  |

----

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                             |   | Numberof issues |   | Cost or amortizedcost |   | Fair value |   | Gross unrealized gain/loss |   | Grossinvestmentincome |
| At March 31, 2013                                              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Taxable fixed maturities:                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fair valued below 70% of amortized cost                        |   | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Fair valued at 70% to less than 100% of amortized cost         |   | 40 |  |   | 257 |  |   | 254 |  |   | (3 | ) |   | 2 |  |
| Fair valued at 100% and above of amortized cost                |   | 1,348 |  |   | 5,353 |  |   | 6,013 |  |   | 660 |  |   | 72 |  |
| Securities sold in current year                                |   | — |  |   | — |  |   | — |  |   | — |  |   | 1 |  |
| Total                                                          |   | 1,388 |  |   | 5,610 |  |   | 6,267 |  |   | 657 |  |   | 75 |  |
| Tax-exempt fixed maturities:                                   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fair valued below 70% of amortized cost                        |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Fair valued at 70% to less than 100% of amortized cost         |   | 73 |  |   | 104 |  |   | 103 |  |   | (1 | ) |   | — |  |
| Fair valued at 100% and above of amortized cost                |   | 1,245 |  |   | 2,609 |  |   | 2,799 |  |   | 190 |  |   | 27 |  |
| Securities sold in current year                                |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total                                                          |   | 1,318 |  |   | 2,713 |  |   | 2,902 |  |   | 189 |  |   | 27 |  |
| Common equities:                                               |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fair valued below 70% of cost                                  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Fair valued at 70% to less than 100% of cost                   |   | 3 |  |   | 76 |  |   | 74 |  |   | (2 | ) |   | 1 |  |
| Fair valued at 100% and above of cost                          |   | 73 |  |   | 2,255 |  |   | 3,601 |  |   | 1,346 |  |   | 24 |  |
| Securities sold in current year                                |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total                                                          |   | 76 |  |   | 2,331 |  |   | 3,675 |  |   | 1,344 |  |   | 25 |  |
| Preferred equities:                                            |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fair valued below 70% of cost                                  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Fair valued at 70% to less than 100% of cost                   |   | 1 |  |   | 1 |  |   | 1 |  |   | — |  |   | — |  |
| Fair valued at 100% and above of cost                          |   | 21 |  |   | 84 |  |   | 125 |  |   | 41 |  |   | 2 |  |
| Securities sold in current year                                |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total                                                          |   | 22 |  |   | 85 |  |   | 126 |  |   | 41 |  |   | 2 |  |
| Portfolio summary:                                             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fair valued below 70% of cost or amortized cost                |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Fair valued at 70% to less than 100% of cost or amortized cost |   | 117 |  |   | 438 |  |   | 432 |  |   | (6 | ) |   | 3 |  |
| Fair valued at 100% and above of cost or amortized cost        |   | 2,687 |  |   | 10,301 |  |   | 12,538 |  |   | 2,237 |  |   | 125 |  |
| Investment income on securities sold in current year           |   | — |  |   | — |  |   | — |  |   | — |  |   | 1 |  |
| Total                                                          |   | 2,804 |  |   | $ | 10,739 |  |   | $ | 12,970 |  |   | $ | 2,231 |  |   | $ | 129 |  |
| At December 31, 2012                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Portfolio summary:                                             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fair valued below 70% of cost or amortized cost                |   | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Fair valued at 70% to less than 100% of cost or amortized cost |   | 68 |  |   | 253 |  |   | 240 |  |   | (13 | ) |   | 8 |  |
| Fair valued at 100% and above of cost or amortized cost        |   | 2,716 |  |   | 10,338 |  |   | 12,226 |  |   | 1,888 |  |   | 496 |  |
| Investment income on securities sold in current year           |   | — |  |   | — |  |   | — |  |   | — |  |   | 31 |  |
| Total                                                          |   | 2,784 |  |   | $ | 10,591 |  |   | $ | 12,466 |  |   | $ | 1,875 |  |   | $ | 535 |  |

----

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

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

|                     |
|---------------------|
|                     |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Period              |   | Total number of shares purchased |   | Average price paid per share |   | Total number of shares purchased as part ofpublicly announcedplans or programs |   | Maximum number ofshares that may yet bepurchased under theplans or programs |
| January 1-31, 2013  |   | 5,776 |  |   | $ | 41.73 |  |   | 5,776 |  |   | 7,121,462 |  |
| February 1-28, 2013 |   | 100,628 |  |   | 44.60 |  |   | 100,628 |  |   | 7,020,834 |  |
| March 1-31, 2013    |   | 93,709 |  |   | 46.15 |  |   | 93,709 |  |   | 6,927,125 |  |
| Totals              |   | 200,113 |  |   | 45.25 |  |   | 200,113 |  |   |   |  |

----

|             |
|-------------|
|             |  |  |
| Exhibit No. |   | Exhibit Description |
| 3.1         |   | Amended and Restated Articles of Incorporation of Cincinnati Financial Corporation (incorporated by reference to the company’s 2010 Annual Report on Form 10-K dated February 25, 2011, Exhibit 3.1) |
| 3.2         |   | Regulations of Cincinnati Financial Corporation, as amended through May 1, 2010 (incorporated by reference to the company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, Exhibit 3.2) |
| 10.1        |   | Form of Incentive Stock Option Agreement for the Cincinnati Financial Corporation Stock Compensation Plan of 2012 (incorporated by reference to Exhibit 10.1 filed with the comany's Current Report on Form 8-K dated February 21, 2013) |
| 10.2        |   | Form of Nonqualified Stock Option Agreement for the Cincinnati Financial Corporation Stock Compensation Plan of 2012 (incorporated by reference to Exhibit 10.2 filed with the company's Current Report on Form 8 K dated February 21, 2013) |
| 10.3        |   | Form of Restricted Stock Unit Agreement (service based) for the Cincinnati Financial Corporation Stock Compensation Plan of 2012  (incorporated by reference to Exhibit 10.3 filed with the company's Current Report on Form 8 K dated February 21, 2013) |
| 10.4        |   | Form of Restricted Stock Unit Agreement (performance based) for the Cincinnati Financial Corporation Stock Compensation Plan of 2012 (incorporated by reference to Exhibit 10.4 filed with the company's Current Report on Form 8 K dated February 21, 2013) |
| 31A         |   | Certification pursuant to Section 302 of the Sarbanes Oxley Act of 2002 – Chief Executive Officer |
| 31B         |   | Certification pursuant to Section 302 of the Sarbanes Oxley Act of 2002 – Chief Financial Officer |
| 32          |   | Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002 |

----

|                                                             |
|-------------------------------------------------------------|
|                                                             |
| CINCINNATI FINANCIAL CORPORATION                            |
| Date: April 25, 2013                                        |
|                                                             |
| /S/ Eric N. Mathews                                         |
| Eric N. Mathews, CPCU, AIAF                                 |
| Vice President, Assistant Secretary and Assistant Treasurer |
| (Principal Accounting Officer)                              |