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

|         |                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Second-quarter 2014 net income of $84 million, or 51 cents per share, compared with $110 million, or 66 cents per share, in the second quarter of 2013. |

|         |                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $75 million, or 46 cents per share operating income*, compared with $100 million, or 61 cents per share, in the 2013 second quarter. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Second-quarter 2014 net income reflected weather effects on property casualty insurance results, including the after-tax impact of a $5 million underwriting loss due to $74 million of natural catastrophe losses with a 45 cent per-share impact. In the comparable period of 2013, we reported $22 million of underwriting profit with a catastrophe impact of $49 million or 30 cents per share. |

|         |                                                                                    |
|---------|------------------------------------------------------------------------------------|
| • | $38.77 book value per share at June 30, 2014, up 4 percent from December 31, 2013. |

|         |                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------|
| • | 6.6 percent value creation ratio for the first six months of 2014, compared with 6.4 percent for the same period of 2013. |

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions except per share data)                        | Three months ended June 30, | Six months ended June 30, |
|                                                       | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Revenue Highlights                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|    Earned premiums                          |   | $ | 1,059 |  |   | $ | 954 |  |   | 11 |  |   | $ | 2,086 |  |   | $ | 1,885 |  |   | 11 |  |
|    Investment income, pretax                |   | 136 |  |   | 131 |  |   | 4 |  |   | 271 |  |   | 259 |  |   | 5 |  |
|    Total revenues                           |   | 1,214 |  |   | 1,104 |  |   | 10 |  |   | 2,403 |  |   | 2,207 |  |   | 9 |  |
| Income Statement Data                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income                               |   | $ | 84 |  |   | $ | 110 |  |   | (24 | ) |   | $ | 175 |  |   | $ | 264 |  |   | (34 | ) |
|    Net realized investment gains and losses |   | 9 |  |   | 10 |  |   | (10 | ) |   | 23 |  |   | 36 |  |   | (36 | ) |
|    Operating income*                        |   | $ | 75 |  |   | $ | 100 |  |   | (25 | ) |   | $ | 152 |  |   | $ | 228 |  |   | (33 | ) |
| Per Share Data (diluted)                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income                               |   | $ | 0.51 |  |   | $ | 0.66 |  |   | (23 | ) |   | $ | 1.06 |  |   | $ | 1.60 |  |   | (34 | ) |
|    Net realized investment gains and losses |   | 0.05 |  |   | 0.05 |  |   | 0 |  |   | 0.14 |  |   | 0.22 |  |   | (36 | ) |
|    Operating income*                        |   | $ | 0.46 |  |   | $ | 0.61 |  |   | (25 | ) |   | $ | 0.92 |  |   | $ | 1.38 |  |   | (33 | ) |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|    Book value                               |   |   |   |   |   |   |   | $ | 38.77 |  |   | $ | 34.83 |  |   | 11 |  |
|    Cash dividend declared                   |   | $ | 0.44 |  |   | $ | 0.4075 |  |   | 8 |  |   | $ | 0.88 |  |   | $ | 0.815 |  |   | 8 |  |
|    Weighted average shares outstanding      |   | 165.1 |  |   | 165.4 |  |   | 0 |  |   | 165.1 |  |   | 165.2 |  |   | 0 |  |

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

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

----

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | 100.9 percent second-quarter 2014 property casualty combined ratio, increased from 96.4 percent for |

|         |                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------|
| • | 10 percent growth in second-quarter net written premiums, reflecting higher pricing and planned growth from strategic initiatives. |

|         |                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $133 million second-quarter 2014 property casualty new business written premiums, down $6 million. Agencies appointed since the beginning of 2013 contributed $7 million or 5 percent of total second-quarter new business written premiums. |

|         |                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------|
| • | 6 cents per share contribution from life insurance operating income, down 2 cents from second-quarter 2013. |

|         |                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 4 percent or $5 million rise in second-quarter 2014 pretax investment income, with higher stock portfolio dividends and interest income that matched second-quarter 2013. |

|         |                                                                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 2 percent three-month rise in fair value of invested assets plus cash at June 30, 2014, including a 4 percent increase for the equity portfolio and a 2 percent increase for the bond portfolio. |

|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| • | $1.616 billion parent company cash and marketable securities at June 30, 2014, up 5 percent from |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                                 | Three months ended June 30, |   | Six months ended June 30, |
|                                                                                          |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Earned premiums                                                                               |   | $ | 1,006 |  |   | $ | 910 |  |   | 11 |  |   | $ | 1,985 |  |   | $ | 1,799 |  |   | 10 |  |
| Fee revenues                                                                                  |   | 2 |  |   | 2 |  |   | 0 |  |   | 3 |  |   | 2 |  |   | 50 |  |
|    Total revenues                                                              |   | 1,008 |  |   | 912 |  |   | 11 |  |   | 1,988 |  |   | 1,801 |  |   | 10 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 707 |  |   | 583 |  |   | 21 |  |   | 1,383 |  |   | 1,107 |  |   | 25 |  |
| Underwriting expenses                                                                         |   | 308 |  |   | 295 |  |   | 4 |  |   | 613 |  |   | 582 |  |   | 5 |  |
|    Underwriting (loss) profit                                                  |   | $ | (7 | ) |   | $ | 34 |  |   | nm |  |   | $ | (8 | ) |   | $ | 112 |  |   | nm |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 70.2 |  % |   | 64.0 |  % |   | 6.2 |  |   | 69.7 |  % |   | 61.5 |  % |   | 8.2 |  |
|      Underwriting expenses                                           |   | 30.7 |  |   | 32.4 |  |   | (1.7 | ) |   | 30.9 |  |   | 32.4 |  |   | (1.5 | ) |
|            Combined ratio              |   | 100.9 |  % |   | 96.4 |  % |   | 4.5 |  |   | 100.6 |  % |   | 93.9 |  % |   | 6.7 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 974 |  |   | $ | 879 |  |   | 11 |  |   | $ | 1,930 |  |   | $ | 1,724 |  |   | 12 |  |
| Agency new business written premiums                                                          |   | 133 |  |   | 139 |  |   | (4 | ) |   | 256 |  |   | 274 |  |   | (7 | ) |
| Other written premiums                                                                        |   | (25 | ) |   | (34 | ) |   | 26 |  |   | (67 | ) |   | (44 | ) |   | (52 | ) |
|    Net written premiums                                                        |   | $ | 1,082 |  |   | $ | 984 |  |   | 10 |  |   | $ | 2,119 |  |   | $ | 1,954 |  |   | 8 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 64.8 |  % |   | 64.9 |  % |   | (0.1 | ) |   | 63.6 |  % |   | 61.5 |  % |   | 2.1 |  |
|      Current accident year catastrophe losses                        |   | 11.9 |  |   | 9.2 |  |   | 2.7 |  |   | 10.9 |  |   | 5.6 |  |   | 5.3 |  |
|      Prior accident years before catastrophe losses                  |   | (6.0 | ) |   | (9.2 | ) |   | 3.2 |  |   | (4.1 | ) |   | (4.8 | ) |   | 0.7 |  |
|      Prior accident years catastrophe losses                         |   | (0.5 | ) |   | (0.9 | ) |   | 0.4 |  |   | (0.7 | ) |   | (0.8 | ) |   | 0.1 |  |
|            Loss and loss expense ratio |   | 70.2 |  % |   | 64.0 |  % |   | 6.2 |  |   | 69.7 |  % |   | 61.5 |  % |   | 8.2 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before catastrophe losses                                |   | 95.5 |  % |   | 97.3 |  % |   | (1.8 | ) |   | 94.5 |  % |   | 93.9 |  % |   | 0.6 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $98 million or 10 percent growth of second-quarter 2014 property casualty net written premiums and six-month growth of 8 percent. The increase reflected the effects of initiatives for premium growth and higher pricing. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $6 million or 4 percent decrease in second-quarter new business premiums written by agencies, reflecting our disciplined pricing and the effects of our underwriting profitability initiatives, partially offset by positive contributions from new agency appointments and other growth initiatives. Six-month new business premiums decreased $18 million, offsetting a $10 million increase from standard market property casualty production from agencies appointed since the beginning of 2013 and a $7 million increase for excess and surplus lines. |

|         |                                                                                                                                                                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 1,467 agency relationships in 1,854 reporting locations marketing property casualty insurance products at June 30, 2014, compared with 1,450 agency relationships in 1,823 reporting locations at year-end 2013. Fifty new agency appointments were made during the first six months of 2014. |

|         |                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 4.5 and 6.7 percentage-point second-quarter and first-half 2014 combined ratio increase, reflecting increases of 3.1 and 5.4 points for losses from natural catastrophes. |

|         |                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| • | 0.4 and 2.0 percentage-point second-quarter and first-half 2014 increase in the ratio for noncatastrophe weather-related losses. |

|         |                                                                                                                                                                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 6.5 percentage-point second-quarter 2014 benefit from favorable prior accident year reserve development of $66 million, compared with 10.1 points or $92 million for second-quarter 2013. Six-month 2014 benefit before catastrophe losses of 4.1 points was slightly less than the six-month 2013 benefit of 4.8 points. |

|         |                                                                                                                                                                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 2.1 percentage-point increase, to 63.6 percent, for the six-month 2014 ratio of current accident year losses and loss expenses before catastrophes, largely due to higher noncatastrophe weather-related losses and a 0.4 point increase in the ratio for current accident year losses of $1 million or more per claim. |

|         |                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 1.7 and 1.5 percentage-point improvement in the second-quarter and six-month underwriting expense ratios, largely due to higher earned premiums and ongoing expense management efforts. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                                 | Three months ended June 30, |   | Six months ended June 30, |
|                                                                                          |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Earned premiums                                                                               |   | $ | 714 |  |   | $ | 645 |  |   | 11 |  |   | $ | 1,406 |  |   | $ | 1,276 |  |   | 10 |  |
| Fee revenues                                                                                  |   | 1 |  |   | 1 |  |   | 0 |  |   | 2 |  |   | 1 |  |   | 100 |  |
|    Total revenues                                                              |   | 715 |  |   | 646 |  |   | 11 |  |   | 1,408 |  |   | 1,277 |  |   | 10 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 461 |  |   | 399 |  |   | 16 |  |   | 930 |  |   | 764 |  |   | 22 |  |
| Underwriting expenses                                                                         |   | 226 |  |   | 213 |  |   | 6 |  |   | 448 |  |   | 421 |  |   | 6 |  |
|    Underwriting profit                                                         |   | $ | 28 |  |   | $ | 34 |  |   | (18 | ) |   | $ | 30 |  |   | $ | 92 |  |   | (67 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 64.5 |  % |   | 61.9 |  % |   | 2.6 |  |   | 66.2 |  % |   | 59.9 |  % |   | 6.3 |  |
|      Underwriting expenses                                           |   | 31.8 |  |   | 33.0 |  |   | (1.2 | ) |   | 31.9 |  |   | 33.0 |  |   | (1.1 | ) |
|            Combined ratio              |   | 96.3 |  % |   | 94.9 |  % |   | 1.4 |  |   | 98.1 |  % |   | 92.9 |  % |   | 5.2 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 669 |  |   | $ | 602 |  |   | 11 |  |   | $ | 1,382 |  |   | $ | 1,233 |  |   | 12 |  |
| Agency new business written premiums                                                          |   | 95 |  |   | 100 |  |   | (5 | ) |   | 185 |  |   | 197 |  |   | (6 | ) |
| Other written premiums                                                                        |   | (16 | ) |   | (24 | ) |   | 33 |  |   | (48 | ) |   | (24 | ) |   | (100 | ) |
|    Net written premiums                                                        |   | $ | 748 |  |   | $ | 678 |  |   | 10 |  |   | $ | 1,519 |  |   | $ | 1,406 |  |   | 8 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 63.4 |  % |   | 64.2 |  % |   | (0.8 | ) |   | 61.5 |  % |   | 61.4 |  % |   | 0.1 |  |
|      Current accident year catastrophe losses                        |   | 9.1 |  |   | 7.9 |  |   | 1.2 |  |   | 9.0 |  |   | 4.6 |  |   | 4.4 |  |
|      Prior accident years before catastrophe losses                  |   | (7.5 | ) |   | (9.4 | ) |   | 1.9 |  |   | (3.8 | ) |   | (5.3 | ) |   | 1.5 |  |
|      Prior accident years catastrophe losses                         |   | (0.5 | ) |   | (0.8 | ) |   | 0.3 |  |   | (0.5 | ) |   | (0.8 | ) |   | 0.3 |  |
|            Loss and loss expense ratio |   | 64.5 |  % |   | 61.9 |  % |   | 2.6 |  |   | 66.2 |  % |   | 59.9 |  % |   | 6.3 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before catastrophe losses                                |   | 95.2 |  % |   | 97.2 |  % |   | (2.0 | ) |   | 93.4 |  % |   | 94.4 |  % |   | (1.0 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $70 million or 10 percent increase in second-quarter 2014 commercial lines net written premiums, primarily due to premium growth initiatives and higher pricing. Eight percent increase in six-month net written premiums. |

|         |                                                                                                                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $67 million and $149 million rise in second-quarter and six-month renewal written premiums included commercial lines renewal pricing changes, increasing in the second quarter of 2014 on average in the low-single-digit range, in addition to rising insured exposures. |

|         |                                                                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $5 million or 5 percent decrease in second-quarter new business written by agencies, including a $3 million decrease for our workers’ compensation line of business. For the six-month period, the $12 million new business decrease included $9 million for workers’ compensation. |

|         |                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 1.4 and 5.2 percentage-point rise in second-quarter and first-half 2014 combined ratio, reflecting increases of 1.5 and 4.7 points for losses from natural catastrophes. |

|         |                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| • | 0.4 and 1.7 percentage-point second-quarter and first-half 2014 increase in the ratio for noncatastrophe weather-related losses. |

|         |                                                                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 8.0 percentage-point second-quarter 2014 benefit from favorable prior accident year reserve development of $57 million, compared with 10.2 points or $66 million for second-quarter 2013. Six-month 2014 benefit before catastrophe losses of 3.8 points was less than the six-month 2013 benefit of 5.3 points. |

|         |                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.1 percentage-point increase, to 61.5 percent, for the six-month 2014 ratio of current accident year losses and loss expenses before catastrophes, largely due to higher noncatastrophe weather-related losses. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                                 | Three months ended June 30, |   | Six months ended June 30, |
|                                                                                          |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Earned premiums                                                                               |   | $ | 258 |  |   | $ | 237 |  |   | 9 |  |   | $ | 512 |  |   | $ | 468 |  |   | 9 |  |
| Fee revenues                                                                                  |   | 1 |  |   | 1 |  |   | 0 |  |   | 1 |  |   | 1 |  |   | 0 |  |
|    Total revenues                                                              |   | 259 |  |   | 238 |  |   | 9 |  |   | 513 |  |   | 469 |  |   | 9 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 227 |  |   | 166 |  |   | 37 |  |   | 415 |  |   | 307 |  |   | 35 |  |
| Underwriting expenses                                                                         |   | 72 |  |   | 73 |  |   | (1 | ) |   | 145 |  |   | 143 |  |   | 1 |  |
|    Underwriting (loss) profit                                                  |   | $ | (40 | ) |   | $ | (1 | ) |   | nm |  |   | $ | (47 | ) |   | $ | 19 |  |   | nm |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 87.7 |  % |   | 69.5 |  % |   | 18.2 |  |   | 81.0 |  % |   | 65.5 |  % |   | 15.5 |  |
|      Underwriting expenses                                           |   | 28.1 |  |   | 30.9 |  |   | (2.8 | ) |   | 28.4 |  |   | 30.6 |  |   | (2.2 | ) |
|            Combined ratio              |   | 115.8 |  % |   | 100.4 |  % |   | 15.4 |  |   | 109.4 |  % |   | 96.1 |  % |   | 13.3 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 276 |  |   | $ | 251 |  |   | 10 |  |   | $ | 494 |  |   | $ | 446 |  |   | 11 |  |
| Agency new business written premiums                                                          |   | 24 |  |   | 30 |  |   | (20 | ) |   | 45 |  |   | 58 |  |   | (22 | ) |
| Other written premiums                                                                        |   | (6 | ) |   | (8 | ) |   | 25 |  |   | (14 | ) |   | (16 | ) |   | 13 |  |
|    Net written premiums                                                        |   | $ | 294 |  |   | $ | 273 |  |   | 8 |  |   | $ | 525 |  |   | $ | 488 |  |   | 8 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 67.1 |  % |   | 66.8 |  % |   | 0.3 |  |   | 67.5 |  % |   | 60.9 |  % |   | 6.6 |  |
|      Current accident year catastrophe losses                        |   | 21.0 |  |   | 13.7 |  |   | 7.3 |  |   | 17.2 |  |   | 9.3 |  |   | 7.9 |  |
|      Prior accident years before catastrophe losses                  |   | 0.2 |  |   | (9.9 | ) |   | 10.1 |  |   | (2.2 | ) |   | (3.5 | ) |   | 1.3 |  |
|      Prior accident years catastrophe losses                         |   | (0.6 | ) |   | (1.1 | ) |   | 0.5 |  |   | (1.5 | ) |   | (1.2 | ) |   | (0.3 | ) |
|            Loss and loss expense ratio |   | 87.7 |  % |   | 69.5 |  % |   | 18.2 |  |   | 81.0 |  % |   | 65.5 |  % |   | 15.5 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before catastrophe losses                                |   | 95.2 |  % |   | 97.7 |  % |   | (2.5 | ) |   | 95.9 |  % |   | 91.5 |  % |   | 4.4 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $21 million or 8 percent increase in second-quarter 2014 personal lines net written premiums, largely due to higher renewal written premiums that reflect rate increases. Eight percent increase in six-month net written premiums. |

|         |                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $6 million or 20 percent decrease in second-quarter new business written by agencies, declining as expected due to underwriting actions such as expanded use of higher deductibles, age of roof limitations and more precise pricing. |

|         |                                                                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 15.4 and 13.3 percentage-point rise in second-quarter and first-half 2014 combined ratio, in part reflecting increases of 7.8 and 7.6 points for losses from natural catastrophes. |

|         |                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| • | 0.7 and 2.9 percentage-point second-quarter and first-half 2014 increase in the ratio for noncatastrophe weather-related losses. |

|         |                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.4 percentage-point second-quarter 2014 benefit from favorable prior accident year reserve development of $1 million, compared with 11.0 points or $26 million for second-quarter 2013. Six-month 2014 benefit before catastrophe losses of 2.2 points was less than the six-month 2013 benefit of 3.5 points. |

|         |                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 6.6 percentage-point increase, to 67.5 percent, for the six-month 2014 ratio of current accident year losses and loss expenses before catastrophes, in part due to higher noncatastrophe weather-related losses. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                                 | Three months ended June 30, |   | Six months ended June 30, |
|                                                                                          |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Earned premiums                                                                               |   | $ | 34 |  |   | $ | 28 |  |   | 21 |  |   | $ | 67 |  |   | $ | 55 |  |   | 22 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 19 |  |   | 18 |  |   | 6 |  |   | 38 |  |   | 36 |  |   | 6 |  |
| Underwriting expenses                                                                         |   | 10 |  |   | 9 |  |   | 11 |  |   | 20 |  |   | 18 |  |   | 11 |  |
|    Underwriting profit                                                         |   | $ | 5 |  |   | $ | 1 |  |   | 400 |  |   | $ | 9 |  |   | $ | 1 |  |   | nm |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 57.0 |  % |   | 66.9 |  % |   | (9.9 | ) |   | 56.8 |  % |   | 66.1 |  % |   | (9.3 | ) |
|      Underwriting expenses                                           |   | 28.0 |  |   | 31.8 |  |   | (3.8 | ) |   | 29.1 |  |   | 32.3 |  |   | (3.2 | ) |
|            Combined ratio              |   | 85.0 |  % |   | 98.7 |  % |   | (13.7 | ) |   | 85.9 |  % |   | 98.4 |  % |   | (12.5 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 29 |  |   | $ | 26 |  |   | 12 |  |   | $ | 54 |  |   | $ | 45 |  |   | 20 |  |
| Agency new business written premiums                                                          |   | 14 |  |   | 9 |  |   | 56 |  |   | 26 |  |   | 19 |  |   | 37 |  |
| Other written premiums                                                                        |   | (3 | ) |   | (2 | ) |   | (50 | ) |   | (5 | ) |   | (4 | ) |   | (25 | ) |
|    Net written premiums                                                        |   | $ | 40 |  |   | $ | 33 |  |   | 21 |  |   | $ | 75 |  |   | $ | 60 |  |   | 25 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 75.4 |  % |   | 65.7 |  % |   | 9.7 |  |   | 77.9 |  % |   | 69.6 |  % |   | 8.3 |  |
|      Current accident year catastrophe losses                        |   | 2.3 |  |   | 0.9 |  |   | 1.4 |  |   | 2.6 |  |   | 0.6 |  |   | 2.0 |  |
|      Prior accident years before catastrophe losses                  |   | (21.3 | ) |   | (0.7 | ) |   | (20.6 | ) |   | (24.1 | ) |   | (4.7 | ) |   | (19.4 | ) |
|      Prior accident years catastrophe losses                         |   | 0.6 |  |   | 1.0 |  |   | (0.4 | ) |   | 0.4 |  |   | 0.6 |  |   | (0.2 | ) |
|            Loss and loss expense ratio |   | 57.0 |  % |   | 66.9 |  % |   | (9.9 | ) |   | 56.8 |  % |   | 66.1 |  % |   | (9.3 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before catastrophe losses                                |   | 103.4 |  % |   | 97.5 |  % |   | 5.9 |  |   | 107.0 |  % |   | 101.9 |  % |   | 5.1 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $7 million or 21 percent growth in second-quarter 2014 excess and surplus lines net written premiums, a growth rate similar to six months at 25 percent. Average renewal pricing increased in the mid-single-digit range during the second quarter. |

|         |                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $5 million or 56 percent increase in second-quarter new business written by agencies, rising as expected due in part to a 60 percent increase in excess and surplus lines field marketing representatives since March 31, 2013. |

|         |                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 13.7 and 12.5 percentage-point improvement in second-quarter and first-half 2014 combined ratio, primarily due to more favorable prior accident year reserve development. |

|         |                                                                                                                                                                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 20.7 percentage-point second-quarter 2014 benefit from favorable prior accident year reserve development of $8 million, compared with an unfavorable 0.3 points or less than $1 million for second-quarter 2013. Six-month 2014 benefit before catastrophe losses of 24.1 points was more than the six-month 2013 benefit of 4.7 points. |

----

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                         | Three months ended June 30, |   | Six months ended June 30, |
|                                                                  | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Term life insurance                                                   |   | $ | 33 |  |   | $ | 31 |  |   | 6 |  |   | $ | 65 |  |   | $ | 60 |  |   | 8 |  |
| Universal life insurance                                              |   | 12 |  |   | 4 |  |   | 200 |  |   | 20 |  |   | 9 |  |   | 122 |  |
| Other life insurance, annuity, and disability income products         |   | 8 |  |   | 9 |  |   | (11 | ) |   | 16 |  |   | 17 |  |   | (6 | ) |
|     Earned premiums                               |   | 53 |  |   | 44 |  |   | 20 |  |   | 101 |  |   | 86 |  |   | 17 |  |
| Investment income, net of expenses                                    |   | 37 |  |   | 34 |  |   | 9 |  |   | 72 |  |   | 69 |  |   | 4 |  |
| Other income                                                          |   | 1 |  |   | 1 |  |   | 0 |  |   | 3 |  |   | 2 |  |   | 50 |  |
| Total revenues, excluding realized investment gains and losses        |   | 91 |  |   | 79 |  |   | 15 |  |   | 176 |  |   | 157 |  |   | 12 |  |
| Contract holders’ benefits incurred                             |   | 56 |  |   | 48 |  |   | 17 |  |   | 112 |  |   | 92 |  |   | 22 |  |
| Operating expenses incurred                                           |   | 19 |  |   | 12 |  |   | 58 |  |   | 34 |  |   | 25 |  |   | 36 |  |
|     Total benefits and expenses                   |   | 75 |  |   | 60 |  |   | 25 |  |   | 146 |  |   | 117 |  |   | 25 |  |
| Net income before income tax and realized investment gains and losses |   | 16 |  |   | 19 |  |   | (16 | ) |   | 30 |  |   | 40 |  |   | (25 | ) |
| Income tax                                                            |   | 6 |  |   | 7 |  |   | (14 | ) |   | 11 |  |   | 14 |  |   | (21 | ) |
| Net income before realized investment gains and losses                |   | $ | 10 |  |   | $ | 12 |  |   | (17 | ) |   | $ | 19 |  |   | $ | 26 |  |   | (27 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $9 million or 20 percent increase in second-quarter 2014 earned premiums, including a 6 percent increase for term life insurance, our largest life insurance product line. Three- and six-month growth rates for term life insurance were similar. Universal life insurance premiums rose due to unlocking of interest rate assumptions that accelerated amortization of unearned front-end loads, with a corresponding increase to operating expenses as less expenses were deferred to future periods. |

|         |                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $21 million in six-month 2014 fixed annuity deposits received, matching the same period of 2013. Cincinnati Life does not offer variable or equity-indexed annuities. |

|         |                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------|
| • | $7 million decrease in six-month 2014 profit, due in part to less favorable mortality experience. |

|         |                                                                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $68 million or 8 percent six-month 2014 increase to $901 million in GAAP shareholders’ equity for The Cincinnati Life Insurance Company, largely reflecting an increase in fair value of the fixed-maturity portfolio due to a decrease in interest rates. |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                           |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                                    | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Total investment income, net of expenses, pretax                                        |   | $ | 136 |  |   | $ | 131 |  |   | 4 |  |   | $ | 271 |  |   | $ | 259 |  |   | 5 |  |
| Investment interest credited to contract holders                                        |   | (20 | ) |   | (18 | ) |   | (11 | ) |   | (41 | ) |   | (39 | ) |   | (5 | ) |
| Realized investment gains and losses summary:                                           |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
|    Realized investment gains and losses                                  |   | 17 |  |   | 14 |  |   | 21 |  |   | 41 |  |   | 56 |  |   | (27 | ) |
|    Change in fair value of securities with embedded derivatives          |   | (3 | ) |   | — |  |   | nm |  |   | (4 | ) |   | 1 |  |   | nm |  |
|    Other-than-temporary impairment charges                               |   | — |  |   | — |  |   | nm |  |   | (1 | ) |   | (2 | ) |   | 50 |  |
|        Total realized investment gains and losses    |   | 14 |  |   | 14 |  |   | 0 |  |   | 36 |  |   | 55 |  |   | (35 | ) |
| Investment operations profit                                                            |   | $ | 130 |  |   | $ | 127 |  |   | 2 |  |   | $ | 266 |  |   | $ | 275 |  |   | (3 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| (In millions)                                                                           |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                                    | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Investment income:                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest                                                              |   | $ | 103 |  |   | $ | 103 |  |   | 0 |  |   | $ | 207 |  |   | $ | 205 |  |   | 1 |  |
|    Dividends                                                             |   | 34 |  |   | 30 |  |   | 13 |  |   | 66 |  |   | 57 |  |   | 16 |  |
|    Other                                                                 |   | 1 |  |   | — |  |   | nm |  |   | 2 |  |   | 1 |  |   | 100 |  |
|    Less investment expenses                                              |   | 2 |  |   | 2 |  |   | 0 |  |   | 4 |  |   | 4 |  |   | 0 |  |
|       Total investment income, net of expenses, pretax    |   | 136 |  |   | 131 |  |   | 4 |  |   | 271 |  |   | 259 |  |   | 5 |  |
|       Less income taxes                                   |   | 33 |  |   | 32 |  |   | 3 |  |   | 65 |  |   | 63 |  |   | 3 |  |
|       Total investment income, net of expenses, after-tax |   | $ | 103 |  |   | $ | 99 |  |   | 4 |  |   | $ | 206 |  |   | $ | 196 |  |   | 5 |  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|       Effective tax rate                                  |   | 23.8 | % |   | 24.1 | % |   |   |   | 23.9 | % |   | 24.2 | % |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Average invested assets plus cash and cash equivalents                                  |   | $ | 13,743 |  |   | $ | 12,661 |  |   |   |   | $ | 13,686 |  |   | $ | 12,451 |  |   |   |
|       Average yield pretax                                |   | 3.96 | % |   | 4.14 | % |   |   |   | 3.96 | % |   | 4.16 | % |   |   |
|       Average yield after-tax                             |   | 3.00 |  |   | 3.13 |  |   |   |   | 3.10 |  |   | 3.15 |  |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Effective fixed-maturity tax rate                                                       |   | 27.1 | % |   | 27.1 | % |   |   |   | 27.1 | % |   | 27.0 | % |   |   |
| Average fixed-maturity at amortized cost                                                |   | $ | 8,664 |  |   | $ | 8,376 |  |   |   |   | $ | 8,679 |  |   | $ | 8,325 |  |   |   |
| Average fixed-maturity yield pretax                                                     |   | 4.76 | % |   | 4.92 | % |   |   |   | 4.77 | % |   | 4.92 | % |   |   |
| Average fixed-maturity yield after-tax                                                  |   | 3.47 |  |   | 3.59 |  |   |   |   | 3.48 |  |   | 3.60 |  |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 4 percent rise in second-quarter 2014 pretax investment income, including 13 percent growth in equity portfolio dividends and interest income that matched the same period a year ago. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $235 million or 10 percent second-quarter 2014 net increase in pretax unrealized investment portfolio gains, including a $142 million increase for the equity portfolio. That net increase included the offsetting effect of $20 million of pretax net realized gains from investment portfolio security sales or called bonds during the second quarter of 2014, including $16 million from the equity portfolio. |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |
| (In millions except share data)               |   | At June 30, |   | At December 31, |
|                                          | 2014 |   | 2013 |
| Balance sheet data:                           |   |   |   |   |
|    Invested assets             |   | $ | 14,060 |  |   | $ | 13,564 |  |
|    Total assets                |   | 18,335 |  |   | 17,662 |  |
|    Short-term debt             |   | 49 |  |   | 104 |  |
|    Long-term debt              |   | 790 |  |   | 790 |  |
|    Shareholders’ equity  |   | 6,343 |  |   | 6,070 |  |
|    Book value per share        |   | 38.77 |  |   | 37.21 |  |
|    Debt-to-total-capital ratio |   | 11.7 | % |   | 12.8 | % |

|         |                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|
| • | $14.522 billion in consolidated cash and invested assets at June 30, 2014, up 4 percent from $13.997 billion at year-end 2013. |

|         |                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $9.383 billion bond portfolio at June 30, 2014, with an average rating of A2/A. Fair value increased $203 million or 2 percent during the second quarter of 2014. |

|         |                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $4.605 billion equity portfolio was 32.8 percent of invested assets, including $2.023 billion in pretax net unrealized gains at June 30, 2014. $179 million or 4 percent second-quarter 2014 growth in fair value. |

|         |                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $4.332 billion of statutory surplus for the property casualty insurance group at June 30, 2014, up $6 million from $4.326 billion at year-end 2013, after declaring $200 million in dividends to the parent company. The ratio of net written premiums to property casualty statutory surplus for the 12 months ended June 30, 2014, was 0.9-to-1, unchanged from year-end 2013. |

|         |                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Value creation ratio of 6.6 percent for first six months of 2014 included 2.5 percent from net income before net realized investment gains and 4.2 percent from investment portfolio realized gains and changes in unrealized gains. |

----

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

|         |                                                                                     |
|---------|-------------------------------------------------------------------------------------|
| • | Inablity of our subidiaries to pay dividends consistent with current or past levels |

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

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

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

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

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

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

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

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

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

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

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

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

----

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

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

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

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

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

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

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

----

|                                                                                      |
|--------------------------------------------------------------------------------------|
|                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                                |   |   |   | June 30, | December 31, |
|                                                                                 |   |   |   |   | 2014 |   | 2013 |
| Assets                                                                               |   |   |   |   |   |   |   |
|    Investments                                                        |   |   |   |   | $ | 14,060 |  |   | $ | 13,564 |  |
|    Cash and cash equivalents                                          |   |   |   |   | 462 |  |   | 433 |  |
|    Premiums receivable                                                |   |   |   |   | 1,462 |  |   | 1,346 |  |
|    Reinsurance recoverable                                            |   |   |   |   | 526 |  |   | 547 |  |
|    Other assets                                                       |   |   |   |   | 1,825 |  |   | 1,772 |  |
|       Total assets                                     |   |   |   |   | $ | 18,335 |  |   | $ | 17,662 |  |
|                                                                                 |   |   |   |   |   |   |   |
| Liabilities                                                                          |   |   |   |   |   |   |   |
|    Insurance reserves                                                 |   |   |   |   | $ | 6,898 |  |   | $ | 6,701 |  |
|    Unearned premiums                                                  |   |   |   |   | 2,110 |  |   | 1,976 |  |
|    Deferred income tax                                                |   |   |   |   | 810 |  |   | 673 |  |
|    Long-term debt and capital lease obligations                       |   |   |   |   | 831 |  |   | 835 |  |
|    Other liabilities                                                  |   |   |   |   | 1,343 |  |   | 1,407 |  |
|       Total liabilities                                |   |   |   |   | 11,992 |  |   | 11,592 |  |
|                                                                                 |   |   |   |   |   |   |   |
| Shareholders’ Equity                                                           |   |   |   |   |   |   |   |
|    Common stock and paid-in capital                                   |   |   |   |   | 1,595 |  |   | 1,588 |  |
|    Retained earnings                                                  |   |   |   |   | 4,299 |  |   | 4,268 |  |
|    Accumulated other comprehensive income                             |   |   |   |   | 1,732 |  |   | 1,504 |  |
|    Treasury stock                                                     |   |   |   |   | (1,283 | ) |   | (1,290 | ) |
|       Total shareholders’ equity                 |   |   |   |   | 6,343 |  |   | 6,070 |  |
|       Total liabilities and shareholders’ equity |   |   |   |   | $ | 18,335 |  |   | $ | 17,662 |  |
|                                                                                 |   |   |   |   |   |   |   |
| (Dollars in millions except per share data)                                          | Three months ended June 30, |   | Six months ended June 30, |
|                                                                                 | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Revenues                                                                             |   |   |   |   |   |   |   |
|    Earned premiums                                                    | $ | 1,059 |  |   | $ | 954 |  |   | $ | 2,086 |  |   | $ | 1,885 |  |
|    Investment income, net of expenses                                 | 136 |  |   | 131 |  |   | 271 |  |   | 259 |  |
|    Realized investment gains and losses, net                          | 14 |  |   | 14 |  |   | 36 |  |   | 55 |  |
|    Other revenues                                                     | 5 |  |   | 5 |  |   | 10 |  |   | 8 |  |
|       Total revenues                                   | 1,214 |  |   | 1,104 |  |   | 2,403 |  |   | 2,207 |  |
|                                                                                 |   |   |   |   |   |   |   |
| Benefits and Expenses                                                                |   |   |   |   |   |   |   |
|    Insurance losses and policyholder benefits                         | 763 |  |   | 631 |  |   | 1,495 |  |   | 1,199 |  |
|    Underwriting, acquisition and insurance expenses                   | 328 |  |   | 307 |  |   | 648 |  |   | 607 |  |
|    Interest expense                                                   | 13 |  |   | 14 |  |   | 27 |  |   | 27 |  |
|    Other operating expenses                                           | 3 |  |   | 4 |  |   | 7 |  |   | 9 |  |
|       Total benefits and expenses                      | 1,107 |  |   | 956 |  |   | 2,177 |  |   | 1,842 |  |
|                                                                                 |   |   |   |   |   |   |   |
| Income Before Income Taxes                                                           | 107 |  |   | 148 |  |   | 226 |  |   | 365 |  |
|                                                                                 |   |   |   |   |   |   |   |
| Provision for Income Taxes                                                           | 23 |  |   | 38 |  |   | 51 |  |   | 101 |  |
|                                                                                 |   |   |   |   |   |   |   |
| Net Income                                                                           | $ | 84 |  |   | $ | 110 |  |   | $ | 175 |  |   | $ | 264 |  |
|                                                                                 |   |   |   |   |   |   |   |
| Per Common Share:                                                                    |   |   |   |   |   |   |   |
|    Net income—basic                                             | $ | 0.51 |  |   | $ | 0.67 |  |   | $ | 1.07 |  |   | $ | 1.62 |  |
|    Net income—diluted                                           | 0.51 |  |   | 0.66 |  |   | 1.06 |  |   | 1.60 |  |

----

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

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

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

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

----

|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars are per outstanding share)                                              |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                             | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Value creation ratio:                                                            |   |   |   |   |   |   |   |   |
|    End of period book value                                       |   | $ | 38.77 |  |   | $ | 34.83 |  |   | $ | 38.77 |  |   | $ | 34.83 |  |
|    Less beginning of period book value                            |   | 37.73 |  |   | 35.41 |  |   | 37.21 |  |   | 33.48 |  |
|    Change in book value                                           |   | 1.04 |  |   | (0.58 | ) |   | 1.56 |  |   | 1.35 |  |
|    Dividend declared to shareholders                              |   | 0.44 |  |   | 0.4075 |  |   | 0.88 |  |   | 0.815 |  |
|    Total contribution to value creation ratio                     |   | $ | 1.48 |  |   | $ | (0.1725 | ) |   | $ | 2.44 |  |   | $ | 2.165 |  |
|                                                                             |   |   |   |   |   |   |   |   |
| Contribution to value creation ratio:                                            |   |   |   |   |   |   |   |   |
| From change in book value*                                                       |   | 2.7 | % |   | (1.6 | )% |   | 4.2 | % |   | 4.0 | % |
| From dividends declared to shareholders**                                        | 1.2 |  |   | 1.2 |  |   | 2.4 |  |   | 2.4 |  |
| Value creation ratio                                                             |   | 3.9 | % |   | (0.4 | )% |   | 6.6 | % |   | 6.4 | % |
|                                                                             |   |   |   |   |   |   |   |   |
| *    Change in book value divided by the beginning of period book value          |   |   |
| **   Dividend declared to shareholders divided by beginning of period book value |   |   |

|                                                                                                           |
|-----------------------------------------------------------------------------------------------------------|
|                                                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Net Income Reconciliation                                                                           |
|                                                                                                      |
| (In millions except per share data)                                                                       |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                                                      |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
|    Net income                                                                              |   | $ | 84 |  |   | $ | 110 |  |   | $ | 175 |  |   | $ | 264 |  |
|    Net realized investment gains and losses                                                |   | 9 |  |   | 10 |  |   | 23 |  |   | 36 |  |
|    Operating income                                                                        |   | 75 |  |   | 100 |  |   | 152 |  |   | 228 |  |
|    Less catastrophe losses                                                                 |   | (74 | ) |   | (49 | ) |   | (131 | ) |   | (56 | ) |
|    Operating income before catastrophe losses                                              |   | 149 |  |   | 149 |  |   | 283 |  |   | 284 |  |
|    Less non-catastrophe weather losses                                                     |   | (29 | ) |   | (24 | ) |   | (69 | ) |   | (40 | ) |
|    Operating income before catastrophe and   non-catastrophe weather losses |   | $ | 178 |  |   | $ | 173 |  |   | $ | 352 |  |   | $ | 324 |  |
|                                                                                                      |   |   |   |   |   |   |   |   |
| Diluted per share data:                                                                                   |   |   |   |   |   |   |   |   |
|    Net income                                                                              |   | $ | 0.51 |  |   | $ | 0.66 |  |   | $ | 1.06 |  |   | $ | 1.60 |  |
|    Net realized investment gains and losses                                                |   | 0.05 |  |   | 0.05 |  |   | 0.14 |  |   | 0.22 |  |
|    Operating income                                                                        |   | 0.46 |  |   | 0.61 |  |   | 0.92 |  |   | 1.38 |  |
|    Less catastrophe losses                                                                 |   | (0.45 | ) |   | (0.30 | ) |   | (0.79 | ) |   | (0.34 | ) |
|    Operating income before catastrophe losses                                              |   | 0.91 |  |   | 0.91 |  |   | 1.71 |  |   | 1.72 |  |
|    Less non-catastrophe weather losses                                                     |   | (0.18 | ) |   | (0.14 | ) |   | (0.42 | ) |   | (0.24 | ) |
|    Operating income before catastrophe and   non-catastrophe weather losses |   | $ | 1.09 |  |   | $ | 1.05 |  |   | $ | 2.13 |  |   | $ | 1.96 |  |
|                                                                                                      |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Property Casualty Reconciliation                                                                                                                        |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| (In millions)                                                                                                                                           | Three months ended June 30, |
|                                                                                                                                                    | Consolidated | Commercial | Personal | E&S |
| Premiums:                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|    Written premiums                                                                                                                      |   | $ | 1,082 |  |   |   | $ | 748 |  |   |   | $ | 294 |  |   |   | $ | 40 |  |   |
|    Unearned premiums change                                                                                                              |   | (76 | ) |   |   | (34 | ) |   |   | (36 | ) |   |   | (6 | ) |   |
|    Earned premiums                                                                                                                       |   | $ | 1,006 |  |   |   | $ | 714 |  |   |   | $ | 258 |  |   |   | $ | 34 |  |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Statutory ratios:                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|    Statutory combined ratio                                                                                                              |   | 99.6 |  % |   |   | 95.0 |  % |   |   | 114.3 |  % |   |   | 86.1 |  % |   |
|    Contribution from catastrophe losses                                                                                                  |   | 11.4 |  |   |   | 8.6 |  |   |   | 20.4 |  |   |   | 2.9 |  |   |
|    Statutory combined ratio excluding catastrophe losses                                                                                 |   | 88.2 |  % |   |   | 86.4 |  % |   |   | 93.9 |  % |   |   | 83.2 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commission expense ratio                                                                                                              |   | 17.9 |  % |   |   | 17.7 |  % |   |   | 17.4 |  % |   |   | 25.8 |  % |   |
|    Other expense ratio                                                                                                                   |   | 11.5 |  |   |   | 12.8 |  |   |   | 9.2 |  |   |   | 3.3 |  |   |
|    Statutory expense ratio                                                                                                               |   | 29.4 |  % |   |   | 30.5 |  % |   |   | 26.6 |  % |   |   | 29.1 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| GAAP ratio:                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|    GAAP combined ratio                                                                                                                   |   | 100.9 |  % |   |   | 96.3 |  % |   |   | 115.8 |  % |   |   | 85.0 |  % |   |
|    Contribution from catastrophe losses                                                                                                  |   | 11.4 |  |   |   | 8.6 |  |   |   | 20.4 |  |   |   | 2.9 |  |   |
|    Prior accident years before catastrophe losses                                                                                        |   | (6.0 | ) |   |   | (7.5 | ) |   |   | 0.2 |  |   |   | (21.3 | ) |   |
|    GAAP combined ratio excluding catastrophe losses and prior                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|        years reserve development                                                                                     |   | 95.5 |  % |   |   | 95.2 |  % |   |   | 95.2 |  % |   |   | 103.4 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| (In millions)                                                                                                                                           | Six months ended June 30, |
|                                                                                                                                                    | Consolidated | Commercial | Personal | E&S |
| Premiums:                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|    Written premiums                                                                                                                      |   | $ | 2,119 |  |   |   | $ | 1,519 |  |   |   | $ | 525 |  |   |   | $ | 75 |  |   |
|    Unearned premiums change                                                                                                              |   | (134 | ) |   |   | (113 | ) |   |   | (13 | ) |   |   | (8 | ) |   |
|    Earned premiums                                                                                                                       |   | $ | 1,985 |  |   |   | $ | 1,406 |  |   |   | $ | 512 |  |   |   | $ | 67 |  |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Statutory ratios:                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|    Statutory combined ratio                                                                                                              |   | 98.9 |  % |   |   | 95.7 |  % |   |   | 109.3 |  % |   |   | 86.5 |  % |   |
|    Contribution from catastrophe losses                                                                                                  |   | 10.2 |  |   |   | 8.5 |  |   |   | 15.7 |  |   |   | 3.0 |  |   |
|    Statutory combined ratio excluding catastrophe losses                                                                                 |   | 88.7 |  % |   |   | 87.2 |  % |   |   | 93.6 |  % |   |   | 83.5 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commission expense ratio                                                                                                              |   | 17.8 |  % |   |   | 17.0 |  % |   |   | 18.8 |  % |   |   | 26.1 |  % |   |
|    Other expense ratio                                                                                                                   |   | 11.4 |  |   |   | 12.5 |  |   |   | 9.5 |  |   |   | 3.6 |  |   |
|    Statutory expense ratio                                                                                                               |   | 29.2 |  % |   |   | 29.5 |  % |   |   | 28.3 |  % |   |   | 29.7 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| GAAP ratio:                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|    GAAP combined ratio                                                                                                                   |   | 100.6 |  % |   |   | 98.1 |  % |   |   | 109.4 |  % |   |   | 85.9 |  % |   |
|    Contribution from catastrophe losses                                                                                                  |   | 10.2 |  |   |   | 8.5 |  |   |   | 15.7 |  |   |   | 3.0 |  |   |
|    Prior accident years before catastrophe losses                                                                                        |   | (4.1 | ) |   |   | (3.8 | ) |   |   | (2.2 | ) |   |   | (24.1 | ) |   |
|    GAAP combined ratio excluding catastrophe losses and prior                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|        years reserve development                                                                                     |   | 94.5 |  % |   |   | 93.4 |  % |   |   | 95.9 |  % |   |   | 107.0 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.  Ratios are calculated based on dollar amounts in thousands. |