|  |
|--|
|  |  |  |
|  |   | 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.Cincinnati Global Underwriting Ltd. n Cincinnati Global Underwriting Agency Ltd. |

|         |                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Fourth-quarter 2019 net income of $626 million, or $3.79 per share, compared with a net loss of $452 million, or $2.78 per share, in the fourth quarter of 2018. |
|         |                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------|
| • | Full-year 2019 net income of $1.997 billion, or $12.10 per share, compared with $287 million, or $1.75 per share, in 2018. |
|         |                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $44 million or 28% increase in fourth-quarter 2019 non-GAAP operating income* to $203 million, or $1.23 per share, compared with $159 million, or 98 cents per share, in the fourth quarter of last year. |
|         |                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $145 million or 26% increase in full-year 2019 non-GAAP operating income to $694 million, or $4.20 per share, up from $549 million, or $3.35 per share, with property casualty underwriting profit up 83%. |
|         |                                                                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $1.078 billion increase in fourth-quarter 2019 net income reflected the after-tax net effect of a $1.034 billion increase in net investment gains and a $32 million increase in after-tax property casualty underwriting profit. |
|         |                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------|
| • | $60.55 book value per share at December 31, 2019, a record high, up $12.45 or 25.9% since year-end 2018. |
|         |                                                                                      |
|---------|--------------------------------------------------------------------------------------|
| • | 30.5% value creation ratio for full-year 2019, compared with negative 0.1% for 2018. |

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions except per share data)                   | Three months ended December 31, | Twelve months ended December 31, |
|                                                          | 2019 |   | 2018 |   | % Change |   | 2019 |   | 2018 |   | % Change |
| Revenue Data                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|    Earned premiums                             |   | $ | 1,441 |  |   | $ | 1,318 |  |   | 9 |   | $ | 5,604 |  |   | $ | 5,170 |  |   | 8 |
|    Investment income, net of expenses          |   | 168 |  |   | 161 |  |   | 4 |   | 646 |  |   | 619 |  |   | 4 |
|    Total revenues                              |   | 2,152 |  |   | 710 |  |   | 203 |   | 7,924 |  |   | 5,407 |  |   | 47 |
| Income Statement Data                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income (loss)                           |   | $ | 626 |  |   | $ | (452 | ) |   | nm |   | $ | 1,997 |  |   | $ | 287 |  |   | 596 |
|    Investment gains and losses, after-tax      |   | 423 |  |   | (611 | ) |   | nm |   | 1,303 |  |   | (318 | ) |   | nm |
|    Other non-recurring items                   |   | — |  |   | — |  |   | nm |   | — |  |   | 56 |  |   | nm |
|    Non-GAAP operating income*                  |   | $ | 203 |  |   | $ | 159 |  |   | 28 |   | $ | 694 |  |   | $ | 549 |  |   | 26 |
| Per Share Data (diluted)                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income (loss)                           |   | $ | 3.79 |  |   | $ | (2.78 | ) |   | nm |   | $ | 12.10 |  |   | $ | 1.75 |  |   | 591 |
|    Investment gains and losses, after-tax      |   | 2.56 |  |   | (3.76 | ) |   | nm |   | 7.90 |  |   | (1.94 | ) |   | nm |
|    Other non-recurring items                   |   | — |  |   | — |  |   | nm |   | — |  |   | 0.34 |  |   | nm |
|    Non-GAAP operating income*                  |   | $ | 1.23 |  |   | $ | 0.98 |  |   | 26 |   | $ | 4.20 |  |   | $ | 3.35 |  |   | 25 |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|    Book value                                  |   |   |   |   |   |   |   | $ | 60.55 |  |   | $ | 48.10 |  |   | 26 |
|    Cash dividend declared                      |   | $ | 0.56 |  |   | $ | 0.53 |  |   | 6 |   | $ | 2.24 |  |   | $ | 2.12 |  |   | 6 |
|    Diluted weighted average shares outstanding |   | 165.3 |  |   | 162.8 |  |   | 2 |   | 165.1 |  |   | 164.5 |  |   | 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. |

----

|         |                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 91.6% fourth-quarter 2019 property casualty combined ratio, improved from 93.9% for the fourth quarter of 2018. Full-year 2019 property casualty combined ratio at 93.8%, with net written premiums up 10% |
|         |                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------|
| • | 11% growth in fourth-quarter 2019 net written premiums, reflecting price increases and premium growth initiatives. |
|         |                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $193 million fourth-quarter 2019 property casualty new business written premiums. Agencies appointed since the beginning of 2018 contributed $23 million or 12% of total fourth-quarter new business written premiums. |
|         |                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $9 million of life insurance subsidiary net income, up $6 million from the fourth quarter of 2018, and 4% growth in fourth-quarter 2019 term life insurance earned premiums. |
|         |                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 4% or $7 million rise in fourth-quarter 2019 pretax investment income, including 10% growth for stock portfolio dividends and 2% growth in interest income. |
|         |                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 18% full-year increase in fair value of total investments at December 31, 2019, including a 31% increase for the stock portfolio and a 9% increase for the bond portfolio. |
|         |                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------|
| • | $3.315 billion parent company cash and marketable securities at year-end 2019, up 34% from a year ago. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                                         | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                                          |   | 2019 |   | 2018 |   | % Change |   | 2019 |   | 2018 |   | % Change |
| Earned premiums                                                                               |   | $ | 1,374 |  |   | $ | 1,253 |  |   | 10 |   | $ | 5,334 |  |   | $ | 4,920 |  |   | 8 |
| Fee revenues                                                                                  |   | 3 |  |   | 3 |  |   | 0 |   | 11 |  |   | 11 |  |   | 0 |
|    Total revenues                                                              |   | 1,377 |  |   | 1,256 |  |   | 10 |   | 5,345 |  |   | 4,931 |  |   | 8 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 835 |  |   | 798 |  |   | 5 |   | 3,352 |  |   | 3,223 |  |   | 4 |
| Underwriting expenses                                                                         |   | 423 |  |   | 379 |  |   | 12 |   | 1,652 |  |   | 1,522 |  |   | 9 |
|    Underwriting profit                                                         |   | $ | 119 |  |   | $ | 79 |  |   | 51 |   | $ | 341 |  |   | $ | 186 |  |   | 83 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 60.8 |  % |   | 63.7 |  % |   | (2.9) |   | 62.8 |  % |   | 65.5 |  % |   | (2.7) |
|      Underwriting expenses                                           |   | 30.8 |  |   | 30.2 |  |   | 0.6 |   | 31.0 |  |   | 30.9 |  |   | 0.1 |
|            Combined ratio              |   | 91.6 |  % |   | 93.9 |  % |   | (2.3) |   | 93.8 |  % |   | 96.4 |  % |   | (2.6) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 1,084 |  |   | $ | 1,037 |  |   | 5 |   | $ | 4,519 |  |   | $ | 4,358 |  |   | 4 |
| Agency new business written premiums                                                          |   | 193 |  |   | 158 |  |   | 22 |   | 778 |  |   | 652 |  |   | 19 |
| Other written premiums                                                                        |   | 31 |  |   | (18 | ) |   | nm |   | 219 |  |   | 20 |  |   | nm |
|    Net written premiums                                                        |   | $ | 1,308 |  |   | $ | 1,177 |  |   | 11 |   | $ | 5,516 |  |   | $ | 5,030 |  |   | 10 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 60.5 |  % |   | 59.9 |  % |   | 0.6 |   | 60.9 |  % |   | 61.5 |  % |   | (0.6) |
|      Current accident year catastrophe losses                        |   | 3.5 |  |   | 7.4 |  |   | (3.9) |   | 6.6 |  |   | 7.4 |  |   | (0.8) |
|      Prior accident years before catastrophe losses                  |   | (3.0 | ) |   | (3.2 | ) |   | 0.2 |   | (4.1 | ) |   | (3.1 | ) |   | (1.0) |
|      Prior accident years catastrophe losses                         |   | (0.2 | ) |   | (0.4 | ) |   | 0.2 |   | (0.6 | ) |   | (0.3 | ) |   | (0.3) |
|            Loss and loss expense ratio |   | 60.8 |  % |   | 63.7 |  % |   | (2.9) |   | 62.8 |  % |   | 65.5 |  % |   | (2.7) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|   catastrophe losses                                                                |   | 91.3 |  % |   | 90.1 |  % |   | 1.2 |   | 91.9 |  % |   | 92.4 |  % |   | (0.5) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 11% and 10% growth in fourth-quarter and full-year 2019 property casualty net written premiums, reflecting premium growth initiatives, price increases and a higher level of insured exposures. Contributions to growth for both 2019 periods included 3% from Cincinnati Global and 1% from Cincinnati Re. |
|         |                                                                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 22% and 19% increase in fourth-quarter and full-year 2019 new business premiums written by agencies, compared with a year ago. The full-year increase included a $46 million increase in standard market property casualty production from agencies appointed since the beginning of 2018. |
|         |                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------|
| • | 187 new agency appointments in full-year 2019, including 70 that market only our personal lines products. |
|         |                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| • | 2.3 percentage-point fourth-quarter 2019 combined ratio improvement, including a decrease of 3.7 points for losses from natural catastrophes. |
|         |                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 2.6 percentage-point improvement in full-year 2019 combined ratio, compared with 2018, including a decrease of 1.1 points for losses from natural catastrophes. |
|         |                                                                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 3.2 and 4.7 percentage-point fourth-quarter and full-year 2019 benefit from favorable prior accident year reserve development of $45 million and $248 million, compared with 3.6 points or $44 million for fourth-quarter 2018 and 3.4 points or $167 million of favorable development for full-year 2018. |
|         |                                                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.6 percentage-point improvement, to 60.9%, for the full-year 2019 ratio of current accident year losses and loss expenses before catastrophes, including a decrease of 0.2 points in the ratio for current accident year losses of $1 million or more per claim. |
|         |                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.1 percentage-point increase in the full-year 2019 underwriting expense ratio, matching the annual average of the past three years and reflecting higher earned premiums and ongoing expense management efforts. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                                         | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                                          |   | 2019 |   | 2018 |   | % Change |   | 2019 |   | 2018 |   | % Change |
| Earned premiums                                                                               |   | $ | 852 |  |   | $ | 811 |  |   | 5 |   | $ | 3,319 |  |   | $ | 3,218 |  |   | 3 |
| Fee revenues                                                                                  |   | 2 |  |   | 2 |  |   | 0 |   | 5 |  |   | 5 |  |   | 0 |
|    Total revenues                                                              |   | 854 |  |   | 813 |  |   | 5 |   | 3,324 |  |   | 3,223 |  |   | 3 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 489 |  |   | 505 |  |   | (3) |   | 2,030 |  |   | 2,049 |  |   | (1) |
| Underwriting expenses                                                                         |   | 268 |  |   | 253 |  |   | 6 |   | 1,053 |  |   | 1,023 |  |   | 3 |
|    Underwriting profit                                                         |   | $ | 97 |  |   | $ | 55 |  |   | 76 |   | $ | 241 |  |   | $ | 151 |  |   | 60 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 57.4 |  % |   | 62.3 |  % |   | (4.9) |   | 61.2 |  % |   | 63.7 |  % |   | (2.5) |
|      Underwriting expenses                                           |   | 31.4 |  |   | 31.1 |  |   | 0.3 |   | 31.7 |  |   | 31.7 |  |   | 0.0 |
|            Combined ratio              |   | 88.8 |  % |   | 93.4 |  % |   | (4.6) |   | 92.9 |  % |   | 95.4 |  % |   | (2.5) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 719 |  |   | $ | 694 |  |   | 4 |   | $ | 2,998 |  |   | $ | 2,925 |  |   | 2 |
| Agency new business written premiums                                                          |   | 129 |  |   | 101 |  |   | 28 |   | 510 |  |   | 417 |  |   | 22 |
| Other written premiums                                                                        |   | (29 | ) |   | (34 | ) |   | 15 |   | (98 | ) |   | (97 | ) |   | (1) |
|    Net written premiums                                                        |   | $ | 819 |  |   | $ | 761 |  |   | 8 |   | $ | 3,410 |  |   | $ | 3,245 |  |   | 5 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 62.0 |  % |   | 62.8 |  % |   | (0.8) |   | 61.7 |  % |   | 62.1 |  % |   | (0.4) |
|      Current accident year catastrophe losses                        |   | 0.1 |  |   | 4.9 |  |   | (4.8) |   | 5.3 |  |   | 6.5 |  |   | (1.2) |
|      Prior accident years before catastrophe losses                  |   | (3.9 | ) |   | (4.7 | ) |   | 0.8 |   | (5.0 | ) |   | (4.2 | ) |   | (0.8) |
|      Prior accident years catastrophe losses                         |   | (0.8 | ) |   | (0.7 | ) |   | (0.1) |   | (0.8 | ) |   | (0.7 | ) |   | (0.1) |
|            Loss and loss expense ratio |   | 57.4 |  % |   | 62.3 |  % |   | (4.9) |   | 61.2 |  % |   | 63.7 |  % |   | (2.5) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|   catastrophe losses                                                                |   | 93.4 |  % |   | 93.9 |  % |   | (0.5) |   | 93.4 |  % |   | 93.8 |  % |   | (0.4) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 8% and 5% growth in fourth-quarter and full-year 2019 commercial lines net written premiums, including price increases and growth initiatives. Fourth-quarter and full-year 2019 commercial lines average renewal pricing increases in the low-single-digit percent range, with the second half of 2019 higher in that range than the first half. |
|         |                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 22% or $93 million increase in full-year 2019 new business written by agencies, including $33 million from agencies appointed since the beginning of 2018. |
|         |                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| • | 4.6 percentage-point fourth-quarter 2019 combined ratio improvement, including a decrease of 4.9 points for losses from natural catastrophes. |
|         |                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 2.5 percentage-point improvement in the full-year 2019 combined ratio, including a decrease of 1.3 points for losses from natural catastrophe losses. |
|         |                                                                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 4.7 and 5.8 percentage-point fourth-quarter and full-year 2019 benefit from favorable prior accident year reserve development of $39 million and $192 million, compared with 5.4 points or $43 million for fourth-quarter 2018 and 4.9 points or $157 million of favorable development for full-year 2018. |
|         |                                                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.4 percentage-point improvement, to 61.7%, for the full-year 2019 ratio of current accident year losses and loss expenses before catastrophes, including a decrease of 0.4 points in the ratio for current accident year losses of $1 million or more per claim. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                                         | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                                          |   | 2019 |   | 2018 |   | % Change |   | 2019 |   | 2018 |   | % Change |
| Earned premiums                                                                               |   | $ | 358 |  |   | $ | 342 |  |   | 5 |   | $ | 1,404 |  |   | $ | 1,336 |  |   | 5 |
| Fee revenues                                                                                  |   | 1 |  |   | 1 |  |   | 0 |   | 4 |  |   | 5 |  |   | (20) |
|    Total revenues                                                              |   | 359 |  |   | 343 |  |   | 5 |   | 1,408 |  |   | 1,341 |  |   | 5 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 251 |  |   | 216 |  |   | 16 |   | 985 |  |   | 972 |  |   | 1 |
| Underwriting expenses                                                                         |   | 104 |  |   | 97 |  |   | 7 |   | 415 |  |   | 389 |  |   | 7 |
|    Underwriting profit (loss)                                                  |   | $ | 4 |  |   | $ | 30 |  |   | (87) |   | $ | 8 |  |   | $ | (20 | ) |   | nm |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 70.2 |  % |   | 63.3 |  % |   | 6.9 |   | 70.2 |  % |   | 72.8 | % |   | (2.6) |
|      Underwriting expenses                                           |   | 29.1 |  |   | 28.4 |  |   | 0.7 |   | 29.6 |  |   | 29.1 |  |   | 0.5 |
|            Combined ratio              |   | 99.3 |  % |   | 91.7 |  % |   | 7.6 |   | 99.8 |  % |   | 101.9 | % |   | (2.1) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 309 |  |   | $ | 293 |  |   | 5 |   | $ | 1,312 |  |   | $ | 1,241 |  |   | 6 |
| Agency new business written premiums                                                          |   | 36 |  |   | 38 |  |   | (5) |   | 158 |  |   | 165 |  |   | (4) |
| Other written premiums                                                                        |   | (9 | ) |   | (8 | ) |   | (13) |   | (35 | ) |   | (28 | ) |   | (25) |
|    Net written premiums                                                        |   | $ | 336 |  |   | $ | 323 |  |   | 4 |   | $ | 1,435 |  |   | $ | 1,378 |  |   | 4 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 63.0 |  % |   | 56.2 |  % |   | 6.8 |   | 62.4 |  % |   | 62.8 | % |   | (0.4) |
|      Current accident year catastrophe losses                        |   | 10.0 |  |   | 8.0 |  |   | 2.0 |   | 9.7 |  |   | 9.1 |  |   | 0.6 |
|      Prior accident years before catastrophe losses                  |   | (2.5 | ) |   | (1.1 | ) |   | (1.4) |   | (2.1 | ) |   | 0.6 |  |   | (2.7) |
|      Prior accident years catastrophe losses                         |   | (0.3 | ) |   | 0.2 |  |   | (0.5) |   | 0.2 |  |   | 0.3 |  |   | (0.1) |
|            Loss and loss expense ratio |   | 70.2 |  % |   | 63.3 |  % |   | 6.9 |   | 70.2 |  % |   | 72.8 | % |   | (2.6) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|   catastrophe losses                                                                |   | 92.1 |  % |   | 84.6 |  % |   | 7.5 |   | 92.0 |  % |   | 91.9 | % |   | 0.1 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 4% growth for both fourth-quarter and full-year 2019 personal lines net written premiums, primarily due to higher renewal written premiums that benefited from rate increases. Full-year 2019 net written premiums from our agencies’ high net worth clients grew 32%, to $408 million. |
|         |                                                                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 1% increase in full-year 2019 earned premiums in aggregate from our five highest volume states for personal lines policies, representing approximately half of our personal lines premiums, while rising 9% for all other states in aggregate as we progress toward geographic diversification. |
|         |                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------|
| • | 4% decrease in full-year 2019 new business written premium, reflecting pricing discipline, particularly in select states. |
|         |                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 7.6 percentage-point increase in fourth-quarter 2019 combined ratio, primarily due to an increase of 6.8 points in the ratio for current accident year losses and loss expenses before catastrophes. |
|         |                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 2.1 percentage-point improvement in the full-year 2019 combined ratio, despite an increase for losses from natural catastrophes of 0.5 points. |
|         |                                                                                                                                                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 2.8 and 1.9 percentage-point fourth-quarter and full-year 2019 benefit from favorable prior accident year reserve development of $9 million and $27 million, compared with favorable prior reserve development of 0.9 points or $3 million for fourth-quarter 2018 and unfavorable development of 0.9 points or $13 million for full-year 2018. |
|         |                                                                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.4 percentage-point improvement, to 62.4%, for the full-year 2019 ratio of current accident year losses and loss expenses before catastrophes, despite an increase of 0.8 points in the ratio for current accident year losses of $1 million or more per claim. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                                         | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                                          |   | 2019 |   | 2018 |   | % Change |   | 2019 |   | 2018 |   | % Change |
| Earned premiums                                                                               |   | $ | 76 |  |   | $ | 61 |  |   | 25 |   | $ | 278 |  |   | $ | 234 |  |   | 19 |
| Fee revenues                                                                                  |   | — |  |   | — |  |   | 0 |   | 2 |  |   | 1 |  |   | 100 |
|    Total revenues                                                              |   | 76 |  |   | 61 |  |   | 25 |   | 280 |  |   | 235 |  |   | 19 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 41 |  |   | 29 |  |   | 41 |   | 142 |  |   | 104 |  |   | 37 |
| Underwriting expenses                                                                         |   | 22 |  |   | 17 |  |   | 29 |   | 85 |  |   | 68 |  |   | 25 |
|    Underwriting profit                                                         |   | $ | 13 |  |   | $ | 15 |  |   | (13) |   | $ | 53 |  |   | $ | 63 |  |   | (16) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 54.4 |  % |   | 46.8 |  % |   | 7.6 |   | 51.1 |  % |   | 44.4 |  % |   | 6.7 |
|      Underwriting expenses                                           |   | 28.5 |  |   | 28.6 |  |   | (0.1) |   | 30.4 |  |   | 29.1 |  |   | 1.3 |
|            Combined ratio              |   | 82.9 |  % |   | 75.4 |  % |   | 7.5 |   | 81.5 |  % |   | 73.5 |  % |   | 8.0 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 56 |  |   | $ | 50 |  |   | 12 |   | $ | 209 |  |   | $ | 192 |  |   | 9 |
| Agency new business written premiums                                                          |   | 28 |  |   | 19 |  |   | 47 |   | 110 |  |   | 70 |  |   | 57 |
| Other written premiums                                                                        |   | (4 | ) |   | (4 | ) |   | 0 |   | (16 | ) |   | (13 | ) |   | (23) |
|    Net written premiums                                                        |   | $ | 80 |  |   | $ | 65 |  |   | 23 |   | $ | 303 |  |   | $ | 249 |  |   | 22 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 54.3 |  % |   | 50.9 |  % |   | 3.4 |   | 54.6 |  % |   | 53.9 |  % |   | 0.7 |
|      Current accident year catastrophe losses                        |   | 0.0 |  |   | 0.8 |  |   | (0.8) |   | 0.4 |  |   | 1.1 |  |   | (0.7) |
|      Prior accident years before catastrophe losses                  |   | (0.4 | ) |   | (4.9 | ) |   | 4.5 |   | (4.1 | ) |   | (10.6 | ) |   | 6.5 |
|      Prior accident years catastrophe losses                         |   | 0.5 |  |   | 0.0 |  |   | 0.5 |   | 0.2 |  |   | 0.0 |  |   | 0.2 |
|            Loss and loss expense ratio |   | 54.4 |  % |   | 46.8 |  % |   | 7.6 |   | 51.1 |  % |   | 44.4 |  % |   | 6.7 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|   catastrophe losses                                                                |   | 82.8 |  % |   | 79.5 |  % |   | 3.3 |   | 85.0 |  % |   | 83.0 |  % |   | 2.0 |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 23% and 22% growth in fourth-quarter and full-year 2019 excess and surplus lines net written premiums, including fourth-quarter 2019 renewal price increases averaging in the mid-single-digit percent range. |
|         |                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 57% increase in full-year 2019 new business written premiums, primarily due to more opportunities in the marketplace to write policies with annual premiums of $10,000 or more, plus higher premium rates and our additional marketing efforts. |
|         |                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 7.5 percentage-point increase in fourth-quarter 2019 combined ratio, largely due to less favorable reserve development on prior accident years before catastrophe losses. |
|         |                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 8.0 percentage-point increase in the full-year 2019 combined ratio, primarily due to less favorable reserve development on prior accident years before catastrophe losses. |
|         |                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.1 percentage-point fourth-quarter 2019 unfavorable reserve development on prior accident years of less than $1 million, compared with favorable reserve development of 4.9 points or $2 million for fourth-quarter 2018. |
|         |                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 3.9 percentage-point full-year 2019 benefit from favorable prior accident year reserve development of $11 million, compared with 10.6 points or $24 million for full-year 2018. |
|         |                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.7 percentage-point increase, to 54.6%, for the full-year 2019 ratio of current accident year losses and loss expenses before catastrophes, including an increase of 0.7 points in the ratio for current accident year losses of $1 million or more per claim. |

----

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                       | Three months ended December 31, |   | Twelve months ended December 31, |
|                                        | 2019 |   | 2018 |   | % Change |   | 2019 |   | 2018 |   | % Change |
| Term life insurance                         |   | $ | 47 |  |   | $ | 45 |  |   | 4 |   | $ | 186 |  |   | $ | 172 |  |   | 8 |
| Universal life insurance                    |   | 8 |  |   | 10 |  |   | (20) |   | 39 |  |   | 37 |  |   | 5 |
| Other life insurance and annuity products   |   | 12 |  |   | 10 |  |   | 20 |   | 45 |  |   | 41 |  |   | 10 |
| Earned premiums                             |   | 67 |  |   | 65 |  |   | 3 |   | 270 |  |   | 250 |  |   | 8 |
| Investment income, net of expenses          |   | 38 |  |   | 38 |  |   | 0 |   | 152 |  |   | 153 |  |   | (1) |
| Investment gains and losses, net            |   | — |  |   | (4 | ) |   | nm |   | (4 | ) |   | (4 | ) |   | 0 |
| Fee revenues                                |   | 1 |  |   | 1 |  |   | 0 |   | 4 |  |   | 4 |  |   | 0 |
| Total revenues                              |   | 106 |  |   | 100 |  |   | 6 |   | 422 |  |   | 403 |  |   | 5 |
| Contract holders’ benefits incurred   |   | 75 |  |   | 76 |  |   | (1) |   | 286 |  |   | 267 |  |   | 7 |
| Underwriting expenses incurred              |   | 19 |  |   | 19 |  |   | 0 |   | 86 |  |   | 75 |  |   | 15 |
| Total benefits and expenses                 |   | 94 |  |   | 95 |  |   | (1) |   | 372 |  |   | 342 |  |   | 9 |
| Net income before income tax                |   | 12 |  |   | 5 |  |   | 140 |   | 50 |  |   | 61 |  |   | (18) |
| Income tax                                  |   | 3 |  |   | 2 |  |   | 50 |   | 11 |  |   | 13 |  |   | (15) |
| Net income of the life insurance subsidiary |   | $ | 9 |  |   | $ | 3 |  |   | 200 |   | $ | 39 |  |   | $ | 48 |  |   | (19) |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $20 million or 8% increase in full-year 2019 earned premiums, including an 8% increase for term life insurance, our largest life insurance product line. |
|         |                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $9 million or 19% decrease in full-year 2019 life insurance subsidiary net income, primarily due to increased mortality expense and less favorable effects from the unlocking of interest rate and other actuarial assumptions. |
|         |                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $181 million or 17% full-year 2019 increase to $1.238 billion in GAAP shareholders’ equity for The Cincinnati Life Insurance Company, primarily from an increase in unrealized investment gains. |

----

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                         |   | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                          | 2019 |   | 2018 |   | % Change |   | 2019 |   | 2018 |   | % Change |
| Investment income, net of expenses                            |   | $ | 168 |  |   | $ | 161 |  |   | 4 |   | $ | 646 |  |   | $ | 619 |  |   | 4 |
| Investment interest credited to contract holders’       |   | (25 | ) |   | (24 | ) |   | (4) |   | (99 | ) |   | (96 | ) |   | (3) |
| Investment gains and losses, net                              |   | 537 |  |   | (774 | ) |   | nm |   | 1,650 |  |   | (402 | ) |   | nm |
| Investment profit (loss)                                      |   | $ | 680 |  |   | $ | (637 | ) |   | nm |   | $ | 2,197 |  |   | $ | 121 |  |   | nm |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment income:                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest                                    |   | $ | 114 |  |   | $ | 112 |  |   | 2 |   | $ | 446 |  |   | $ | 445 |  |   | — |
|    Dividends                                   |   | 55 |  |   | 50 |  |   | 10 |   | 201 |  |   | 181 |  |   | 11 |
|    Other                                       |   | 2 |  |   | 2 |  |   | — |   | 12 |  |   | 5 |  |   | 140 |
|    Less investment expenses                    |   | 3 |  |   | 3 |  |   | — |   | 13 |  |   | 12 |  |   | 8 |
|       Investment income, pretax |   | 168 |  |   | 161 |  |   | 4 |   | 646 |  |   | 619 |  |   | 4 |
|       Less income taxes         |   | 26 |  |   | 25 |  |   | 4 |   | 101 |  |   | 95 |  |   | 6 |
| Total investment income, after-tax                            |   | $ | 142 |  |   | $ | 136 |  |   | 4 |   | $ | 545 |  |   | $ | 524 |  |   | 4 |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment returns:                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Average invested assets plus cash and cash    equivalents     |   | $ | 19,591 |  |   | $ | 17,756 |  |   |   |   | $ | 18,697 |  |   | $ | 17,397 |  |   |   |
| Average yield pretax                                          |   | 3.43 | % |   | 3.63 | % |   |   |   | 3.46 | % |   | 3.56 | % |   |   |
| Average yield after-tax                                       |   | 2.90 |  |   | 3.06 |  |   |   |   | 2.91 |  |   | 3.01 |  |   |   |
| Effective tax rate                                            |   | 15.6 | % |   | 15.5 | % |   |   |   | 15.6 | % |   | 15.4 | % |   |   |
| Fixed-maturity returns:                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Average amortized cost                                        |   | $ | 11,060 |  |   | $ | 10,648 |  |   |   |   | $ | 10,876 |  |   | $ | 10,479 |  |   |   |
| Average yield pretax                                          |   | 4.12 | % |   | 4.21 | % |   |   |   | 4.10 | % |   | 4.25 | % |   |   |
| Average yield after-tax                                       |   | 3.44 |  |   | 3.51 |  |   |   |   | 3.42 |  |   | 3.55 |  |   |   |
| Effective tax rate                                            |   | 16.6 | % |   | 16.6 | % |   |   |   | 16.6 | % |   | 16.4 | % |   |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $7 million or 4% rise in fourth-quarter 2019 pretax investment income, including 10% growth in equity portfolio dividends and 2% growth in interest income. |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $539 million fourth-quarter and $2.194 billion full-year 2019 pretax total investment gains, summarized on the table below. Changes in unrealized gains or losses reported in other comprehensive income, in addition to investment gains and losses reported in net income, are useful for evaluating total investment performance over time and are major components of changes in book value and the value creation ratio. |

|                                                                     |
|---------------------------------------------------------------------|
|                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                               |   | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                | 2019 |   | 2018 |   | 2019 |   | 2018 |
| Investment gains and losses on equity securities sold, net          |   | $ | (1 | ) |   | $ | (5 | ) |   | $ | 26 |  |   | $ | 9 |  |
| Unrealized gains and losses on equity securities still held, net    |   | 542 |  |   | (758 | ) |   | 1,626 |  |   | (404 | ) |
| Investment gains and losses on fixed-maturity securities, net       |   | 1 |  |   | (2 | ) |   | 1 |  |   | 5 |  |
| Other                                                               |   | (5 | ) |   | (9 | ) |   | (3 | ) |   | (12 | ) |
| Subtotal - investment gains and losses reported in net income       |   | 537 |  |   | (774 | ) |   | 1,650 |  |   | (402 | ) |
| Change in unrealized investment gains and losses - fixed maturities |   | 2 |  |   | 39 |  |   | 544 |  |   | (339 | ) |
| Total                                                               |   | $ | 539 |  |   | $ | (735 | ) |   | $ | 2,194 |  |   | $ | (741 | ) |
|                                                                |   |   |   |   |   |   |   |   |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |
| (Dollars in millions except share data)       |   | At December 31, |   | At December 31, |
|                                          | 2019 |   | 2018 |
|    Total investments           |   | $ | 19,746 |  |   | $ | 16,732 |  |
|    Total assets                |   | 25,408 |  |   | 21,935 |  |
|    Short-term debt             |   | 39 |  |   | 32 |  |
|    Long-term debt              |   | 788 |  |   | 788 |  |
|    Shareholders’ equity  |   | 9,864 |  |   | 7,833 |  |
|    Book value per share        |   | 60.55 |  |   | 48.10 |  |
|    Debt-to-total-capital ratio |   | 7.7 | % |   | 9.5 | % |

|         |                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------|
| • | $20.513 billion in consolidated cash and invested assets at December 31, 2019, up 17% from $17.516 billion at year-end 2018. |
|         |                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $11.698 billion bond portfolio at December 31, 2019, with an average rating of A2/A. Fair value increased $98 million or 1% during the fourth quarter of 2019. |
|         |                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $7.752 billion equity portfolio was 39.3% of total investments, including $4.171 billion in appreciated value before taxes at December 31, 2019. Fourth-quarter 2019 increase in fair value of $576 million or 8%. |
|         |                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $5.621 billion of statutory surplus for the property casualty insurance group at December 31, 2019, up $702 million from $4.919 billion at year-end 2018, after declaring $625 million in dividends to the parent company. The ratio of net written premiums to property casualty statutory surplus for the 12 months ended December 31, 2019, was 1.0-to-1, matching year-end 2018. |
|         |                                                                                                                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $3.18 fourth-quarter 2019 increase in book value per share, including an addition of $1.24 from net income before investment gains and $2.64 from investment portfolio net investment gains or changes in unrealized gains for fixed-maturity securities, partially offset by $0.14 for other items and $0.56 from dividends declared to shareholders. |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Value creation ratio of 30.5% for full-year 2019, including 8.9% from net income before investment gains, which includes underwriting and investment income, 22.1% from investment portfolio net investment gains or changes in unrealized gains for fixed-maturity securities, including 16.6% from our stock portfolio and 5.5% from our bond portfolio, in addition to negative 0.5% from other items. |

----

|         |                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Unusually high levels of catastrophe losses due to risk concentrations, changes in weather patterns, environmental events, terrorism incidents or other causes |
|         |                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------|
| • | Increased frequency and/or severity of claims or development of claims that are unforeseen at the time of policy issuance |
|         |                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------|
| • | Inadequate estimates, assumptions or reliance on third-party data used for critical accounting estimates |
|         |                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------|
| • | Declines in overall stock market values negatively affecting the company’s equity portfolio and book value |
|         |                                                                                                                                                                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Prolonged low interest rate environment or other factors that limit the company’s ability to generate growth in investment income or interest rate fluctuations that result in declining values of fixed-maturity investments, including declines in accounts in which we hold bank-owned life insurance contract assets |
|         |                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Domestic and global events resulting in capital market or credit market uncertainty, followed by prolonged periods of economic instability or recession, that lead to: |
|         |                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Significant or prolonged decline in the fair value of a particular security or group of securities and impairment of the asset(s) |
|         |                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Significant decline in investment income due to reduced or eliminated dividend payouts from a particular security or group of securities |
|         |                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Significant rise in losses from surety and director and officer policies written for financial institutions or other insured entities |
|         |                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our inability to integrate Cincinnati Global and its subsidiaries into our on-going operations, or disruptions to our on-going operations due to such integration |
|         |                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| • | Recession or other economic conditions resulting in lower demand for insurance products or increased payment delinquencies |
|         |                                                                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Difficulties with technology or data security breaches, including cyberattacks, that could negatively affect our ability to conduct business; disrupt our relationships with agents, policyholders and others; cause reputational damage, mitigation expenses and data loss and expose us to liability under federal and state laws |
|         |                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Disruption of the insurance market caused by technology innovations such as driverless cars that could decrease consumer demand for insurance products |
|         |                                                                                                                                                                                                                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Delays, inadequate data developed internally or from third parties, or performance inadequacies from ongoing development and implementation of underwriting and pricing methods, including telematics and other usage-based insurance methods, or technology projects and enhancements expected to increase our pricing accuracy, underwriting profit and competitiveness |
|         |                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------|
| • | Increased competition that could result in a significant reduction in the company’s premium volume |
|         |                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------|
| • | Changing consumer insurance-buying habits and consolidation of independent insurance agencies that could alter our competitive advantages |
|         |                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Inability to obtain adequate ceded reinsurance on acceptable terms, amount of reinsurance coverage purchased, financial strength of reinsurers and the potential for nonpayment or delay in payment by reinsurers |
|         |                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Inability to defer policy acquisition costs for any business segment if pricing and loss trends would lead management to conclude that segment could not achieve sustainable profitability |
|         |                                                                                       |
|---------|---------------------------------------------------------------------------------------|
| • | Inability of our subsidiaries to pay dividends consistent with current or past levels |
|         |                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Events or conditions that could weaken or harm the company’s relationships with its independent agencies and hamper opportunities to add new agencies, resulting in limitations on the company’s opportunities for growth, such as: |
|         |                                                                   |
|---------|-------------------------------------------------------------------|
| ◦ | Downgrades of the company’s financial strength ratings |
|         |                                                                     |
|---------|---------------------------------------------------------------------|
| ◦ | Concerns that doing business with the company is too difficult |
|         |                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Perceptions that the company’s level of service, particularly claims service, is no longer a distinguishing characteristic in the marketplace |
|         |                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Inability or unwillingness to nimbly develop and introduce coverage product updates and innovations that our competitors offer and consumers expect to find in the marketplace |

----

|         |                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Actions of insurance departments, state attorneys general or other regulatory agencies, including a change to a federal system of regulation from a state-based system, that: |
|         |                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Impose new obligations on us that increase our expenses or change the assumptions underlying our critical accounting estimates |
|         |                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------|
| ◦ | Place the insurance industry under greater regulatory scrutiny or result in new statutes, rules and regulations |
|         |                                                                                                |
|---------|------------------------------------------------------------------------------------------------|
| ◦ | Restrict our ability to exit or reduce writings of unprofitable coverages or lines of business |
|         |                                                                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Add assessments for guaranty funds, other insurance‐related assessments or mandatory reinsurance arrangements; or that impair our ability to recover such assessments through future surcharges or other rate changes |
|         |                                                                           |
|---------|---------------------------------------------------------------------------|
| ◦ | Increase our provision for federal income taxes due to changes in tax law |
|         |                             |
|---------|-----------------------------|
| ◦ | Increase our other expenses |
|         |                                                                   |
|---------|-------------------------------------------------------------------|
| ◦ | Limit our ability to set fair, adequate and reasonable rates |
|         |                                               |
|---------|-----------------------------------------------|
| ◦ | Place us at a disadvantage in the marketplace |
|         |                                                                                            |
|---------|--------------------------------------------------------------------------------------------|
| ◦ | Restrict our ability to execute our business model, including the way we compensate agents |
|         |                                                                     |
|---------|---------------------------------------------------------------------|
| • | Adverse outcomes from litigation or administrative proceedings |
|         |                                                                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Events or actions, including unauthorized intentional circumvention of controls, that reduce the company’s future ability to maintain effective internal control over financial reporting under the Sarbanes-Oxley Act of 2002 |
|         |                                                                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Unforeseen departure of certain executive officers or other key employees due to retirement, health or other causes that could interrupt progress toward important strategic goals or diminish the effectiveness of certain longstanding relationships with insurance agents and others |
|         |                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Events, such as an epidemic, natural catastrophe or terrorism, that could hamper our ability to assemble our workforce at our headquarters location |

----

|                                                                                                                                                                                       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                       |  |  |  |  |  |  |  |  |
| (Dollars in millions except per share data)                                                                                                                                           |   | December 31, |   | December 31, |
|                                                                                                                                                                                  |   | 2019 |   | 2018 |
| Assets                                                                                                                                                                                |   |   |  |   |   |  |
|   Investments                                                                                                                                                               |   |   |  |   |   |  |
|     Fixed maturities, at fair value (amortized cost: 2019—$11,108; 2018—$10,643)                                                                      |   | $ | 11,698 |  |   | $ | 10,689 |  |
|     Equity securities, at fair value (cost: 2019—$3,581; 2018—$3,368)                                                                                 |   | 7,752 |  |   | 5,920 |  |
|     Other invested assets                                                                                                                                         |   | 296 |  |   | 123 |  |
|       Total investments                                                                                                                                 |   | 19,746 |  |   | 16,732 |  |
|   Cash and cash equivalents                                                                                                                                                 |   | 767 |  |   | 784 |  |
|   Investment income receivable                                                                                                                                              |   | 133 |  |   | 132 |  |
|   Finance receivable                                                                                                                                                        |   | 77 |  |   | 71 |  |
|   Premiums receivable                                                                                                                                                       |   | 1,777 |  |   | 1,644 |  |
|   Reinsurance recoverable                                                                                                                                                   |   | 610 |  |   | 484 |  |
|   Prepaid reinsurance premiums                                                                                                                                              |   | 54 |  |   | 44 |  |
|   Deferred policy acquisition costs                                                                                                                                         |   | 774 |  |   | 738 |  |
|   Land, building and equipment, net, for company use (accumulated depreciation:     2019—$276; 2018—$265)                              |   | 207 |  |   | 195 |  |
|   Other assets                                                                                                                                                              |   | 381 |  |   | 308 |  |
|   Separate accounts                                                                                                                                                         |   | 882 |  |   | 803 |  |
|     Total assets                                                                                                                                                  |   | $ | 25,408 |  |   | $ | 21,935 |  |
| Liabilities                                                                                                                                                                           |   |   |  |   |   |  |
|   Insurance reserves                                                                                                                                                        |   |   |  |   |   |  |
|     Loss and loss expense reserves                                                                                                                                |   | $ | 6,147 |  |   | $ | 5,707 |  |
|     Life policy and investment contract reserves                                                                                                                  |   | 2,835 |  |   | 2,779 |  |
|   Unearned premiums                                                                                                                                                         |   | 2,788 |  |   | 2,516 |  |
|   Other liabilities                                                                                                                                                         |   | 928 |  |   | 804 |  |
|   Deferred income tax                                                                                                                                                       |   | 1,079 |  |   | 627 |  |
|   Note payable                                                                                                                                                              |   | 39 |  |   | 32 |  |
|   Long-term debt and lease obligations                                                                                                                                      |   | 846 |  |   | 834 |  |
|   Separate accounts                                                                                                                                                         |   | 882 |  |   | 803 |  |
|     Total liabilities                                                                                                                                             |   | 15,544 |  |   | 14,102 |  |
|                                                                                                                                                                                  |   |   |   |   |
| Shareholders' Equity                                                                                                                                                                  |   |   |  |   |   |  |
|   Common stock, par value—$2 per share; (authorized: 2019 and 2018—500 million shares;    issued: 2019 and 2018—198.3 million shares) |   | 397 |  |   | 397 |  |
| Paid-in capital                                                                                                                                                                       |   | 1,306 |  |   | 1,281 |  |
| Retained earnings                                                                                                                                                                     |   | 9,257 |  |   | 7,625 |  |
| Accumulated other comprehensive income                                                                                                                                                |   | 448 |  |   | 22 |  |
| Treasury stock at cost (2019— 35.4 million shares and 2018—35.5 million shares)                                                                                           |   | (1,544 | ) |   | (1,492 | ) |
| Total shareholders' equity                                                                                                                                                            |   | $ | 9,864 |  |   | $ | 7,833 |  |
| Total liabilities and shareholders' equity                                                                                                                                            |   | $ | 25,408 |  |   | $ | 21,935 |  |
|                                                                                                                                                                                  |   |   |   |   |

----

|                                                                                |
|--------------------------------------------------------------------------------|
|                                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                           |   |   |   |   |   |   |   |
| (Dollars in millions except per share data)                                    | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                           | 2019 |   | 2018 |   | 2019 |   | 2018 |
| Revenues                                                                       |   |   |   |   |   |   |   |
|    Earned premiums                                              | $ | 1,441 |  |   | $ | 1,318 |  |   | $ | 5,604 |  |   | $ | 5,170 |  |
|    Investment income, net of expenses                           | 168 |  |   | 161 |  |   | 646 |  |   | 619 |  |
|    Investment gains and losses, net                             | 537 |  |   | (774 | ) |   | 1,650 |  |   | (402 | ) |
|    Fee revenues                                                 | 4 |  |   | 4 |  |   | 15 |  |   | 15 |  |
|    Other revenues                                               | 2 |  |   | 1 |  |   | 9 |  |   | 5 |  |
|       Total revenues                             | 2,152 |  |   | 710 |  |   | 7,924 |  |   | 5,407 |  |
|                                                                           |   |   |   |   |   |   |   |
| Benefits and Expenses                                                          |   |   |   |   |   |   |   |
|    Insurance losses and contract holders’ benefits        | 910 |  |   | 874 |  |   | 3,638 |  |   | 3,490 |  |
|    Underwriting, acquisition and insurance expenses             | 442 |  |   | 398 |  |   | 1,738 |  |   | 1,597 |  |
|    Interest expense                                             | 13 |  |   | 13 |  |   | 53 |  |   | 53 |  |
|    Other operating expenses                                     | 6 |  |   | 6 |  |   | 23 |  |   | 16 |  |
|       Total benefits and expenses                | 1,371 |  |   | 1,291 |  |   | 5,452 |  |   | 5,156 |  |
|                                                                           |   |   |   |   |   |   |   |
| Income (Loss) Before Income Taxes                                              | 781 |  |   | (581 | ) |   | 2,472 |  |   | 251 |  |
|                                                                           |   |   |   |   |   |   |   |
| Provision (Benefit) for Income Taxes                                           |   |   |   |   |   |   |   |
|    Current                                                      | 48 |  |   | 48 |  |   | 132 |  |   | 11 |  |
|    Deferred                                                     | 107 |  |   | (177 | ) |   | 343 |  |   | (47 | ) |
|       Total provision (benefit) for income taxes | 155 |  |   | (129 | ) |   | 475 |  |   | (36 | ) |
|                                                                           |   |   |   |   |   |   |   |
| Net Income (loss)                                                              | $ | 626 |  |   | $ | (452 | ) |   | $ | 1,997 |  |   | $ | 287 |  |
|                                                                           |   |   |   |   |   |   |   |
| Per Common Share                                                               |   |   |   |   |   |   |   |
|    Net income (loss)—basic                                | $ | 3.84 |  |   | $ | (2.78 | ) |   | $ | 12.24 |  |   | $ | 1.76 |  |
|    Net income (loss)—diluted                              | 3.79 |  |   | (2.78 | ) |   | 12.10 |  |   | 1.75 |  |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Non-GAAP operating income: Non-GAAP operating income is calculated by excluding investment gains and losses (defined as investment gains and losses after applicable federal and state income taxes) and other significant non-recurring items from net income. Management evaluates non-GAAP operating income to measure the success of pricing, rate and underwriting strategies. While investment gains (or losses) are integral to the company’s insurance operations over the long term, the determination to realize investment gains or losses on fixed-maturity securities sold in any period may be subject to management’s discretion and is independent of the insurance underwriting process. |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Consolidated property casualty insurance results: To supplement reporting segment disclosures related to our property casualty insurance operations, we also evaluate results for those operations on a basis that includes results for our property casualty insurance and brokerage services subsidiaries. That is the total of our commercial lines, personal lines and our excess and surplus lines segments plus our reinsurance assumed operations known as Cincinnati Re and our London-based global specialty underwriter known as Cincinnati Global. |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Life insurance subsidiary results: To supplement life insurance reporting segment disclosures related to our life insurance operation, we also evaluate results for that operation on a basis that includes life insurance subsidiary investment income, or investment income plus investment gains and losses, that are also included in our investments reporting segment. We recognize that assets under management, capital appreciation and investment income are integral to evaluating the success of the life insurance segment because of the long duration of life products. |

----

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Net Income Reconciliation                             |
|                                                        |
| (Dollars in millions except per share data)                 |   | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                        |   | 2019 |   | 2018 |   | 2019 |   | 2018 |
| Net income (loss)                                           |   | $ | 626 |  |   | $ | (452 | ) |   | $ | 1,997 |  |   | $ | 287 |  |
| Less:                                                       |   |   |   |   |   |   |   |   |
|    Investment gains and losses, net          |   | 537 |  |   | (774 | ) |   | 1,650 |  |   | (402 | ) |
|    Income tax on investment gains and losses |   | (114 | ) |   | 163 |  |   | (347 | ) |   | 84 |  |
| Investment gains and losses, after-tax                      |   | 423 |  |   | (611 | ) |   | 1,303 |  |   | (318 | ) |
|    Other non-recurring items                 |   | — |  |   | — |  |   | — |  |   | 56 |  |
| Non-GAAP operating income                                   |   | $ | 203 |  |   | $ | 159 |  |   | $ | 694 |  |   | $ | 549 |  |
|                                                        |   |   |   |   |   |   |   |   |
| Diluted per share data:                                     |   |   |   |   |   |   |   |   |
| Net income (loss)                                           |   | $ | 3.79 |  |   | $ | (2.78 | ) |   | $ | 12.10 |  |   | $ | 1.75 |  |
| Less:                                                       |   |   |   |   |   |   |   |   |
|    Investment gains and losses, net          |   | 3.25 |  |   | (4.75 | ) |   | 10.00 |  |   | (2.44 | ) |
|    Income tax on investment gains and losses |   | (0.69 | ) |   | 0.99 |  |   | (2.10 | ) |   | 0.50 |  |
| Investment gains and losses, after-tax                      |   | 2.56 |  |   | (3.76 | ) |   | 7.90 |  |   | (1.94 | ) |
|    Other non-recurring items                 |   | — |  |   | — |  |   | — |  |   | 0.34 |  |
| Non-GAAP operating income                                   |   | $ | 1.23 |  |   | $ | 0.98 |  |   | $ | 4.20 |  |   | $ | 3.35 |  |
|                                                        |   |   |   |   |   |   |   |   |

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Life Insurance Reconciliation                                           |
|                                                                    |
| (Dollars in millions)                                                   |   | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                    |   | 2019 |   | 2018 |   | 2019 |   | 2018 |
| Net income of life insurance subsidiary                                 |   | $ | 9 |  |   | $ | 3 |  |   | $ | 39 |  |   | $ | 48 |  |
|    Investment gains and losses, net                      |   | — |  |   | (4 | ) |   | (4 | ) |   | (4 | ) |
|    Income tax on investment gains and losses             |   | 1 |  |   | — |  |   | — |  |   | — |  |
|    Non-GAAP operating income                             |   | 10 |  |   | 7 |  |   | 43 |  |   | 52 |  |
|                                                                    |   |   |   |   |   |   |   |   |
| Investment income, net of expenses                                      |   | (38 | ) |   | (38 | ) |   | (152 | ) |   | (153 | ) |
| Investment income credited to contract holders'                         |   | 25 |  |   | 24 |  |   | 99 |  |   | 96 |  |
| Income tax excluding tax on investment gains and losses,  net |   | 2 |  |   | 2 |  |   | 11 |  |   | 13 |  |
| Life insurance segment profit (loss)                                    |   | $ | (1 | ) |   | $ | (5 | ) |   | $ | 1 |  |   | $ | 8 |  |
|                                                                    |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Property Casualty Insurance Reconciliation                                                                                                              |
| (Dollars in millions)                                                                                                                                   | Three months ended December 31, 2019 |
|                                                                                                                                                    | Consolidated | Commercial | Personal | E&S |   | Other* |
| Premiums:                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Written premiums                                                                                                                      |   | $ | 1,308 |  |   |   | $ | 819 |  |   |   | $ | 336 |  |   |   | $ | 80 |  |   |   | $ | 73 |  |
|    Unearned premiums change                                                                                                              |   | 66 |  |   |   | 33 |  |   |   | 22 |  |   |   | (4 | ) |   |   | 15 |  |
|    Earned premiums                                                                                                                       |   | $ | 1,374 |  |   |   | $ | 852 |  |   |   | $ | 358 |  |   |   | $ | 76 |  |   |   | $ | 88 |  |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Underwriting profit                                                                                                                                     |   | $ | 119 |  |   |   | $ | 97 |  |   |   | $ | 4 |  |   |   | $ | 13 |  |   |   | $ | 5 |  |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Dollars in millions)                                                                                                                                   | Twelve months ended December 31, 2019 |
|                                                                                                                                                    | Consolidated | Commercial | Personal | E&S |   | Other* |
| Premiums:                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Written premiums                                                                                                                      |   | $ | 5,516 |  |   |   | $ | 3,410 |  |   |   | $ | 1,435 |  |   |   | $ | 303 |  |   |   | $ | 368 |  |
|    Unearned premiums change                                                                                                              |   | (182 | ) |   |   | (91 | ) |   |   | (31 | ) |   |   | (25 | ) |   |   | (35 | ) |
|    Earned premiums                                                                                                                       |   | $ | 5,334 |  |   |   | $ | 3,319 |  |   |   | $ | 1,404 |  |   |   | $ | 278 |  |   |   | $ | 333 |  |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Underwriting profit                                                                                                                                     |   | $ | 341 |  |   |   | $ | 241 |  |   |   | $ | 8 |  |   |   | $ | 53 |  |   |   | $ | 39 |  |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Dollars in millions)                                                                                                                                   | Three months ended December 31, 2018 |
|                                                                                                                                                    | Consolidated | Commercial | Personal | E&S | Other* |
| Premiums:                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Written premiums                                                                                                                      |   | $ | 1,177 |  |   |   | $ | 761 |  |   |   | $ | 323 |  |   |   | $ | 65 |  |   |   | $ | 28 |  |
|    Unearned premiums change                                                                                                              |   | 76 |  |   |   | 50 |  |   |   | 19 |  |   |   | (4 | ) |   |   | 11 |  |
|    Earned premiums                                                                                                                       |   | $ | 1,253 |  |   |   | $ | 811 |  |   |   | $ | 342 |  |   |   | $ | 61 |  |   |   | $ | 39 |  |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Underwriting profit (loss)                                                                                                                              |   | $ | 79 |  |   |   | $ | 55 |  |   |   | $ | 30 |  |   |   | $ | 15 |  |   |   | $ | (21 | ) |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Dollars in millions)                                                                                                                                   | Twelve months ended December 31, 2018 |
|                                                                                                                                                    | Consolidated | Commercial | Personal | E&S | Other* |
| Premiums:                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Written premiums                                                                                                                      |   | $ | 5,030 |  |   |   | $ | 3,245 |  |   |   | $ | 1,378 |  |   |   | $ | 249 |  |   |   | $ | 158 |  |
|    Unearned premiums change                                                                                                              |   | (110 | ) |   |   | (27 | ) |   |   | (42 | ) |   |   | (15 | ) |   |   | (26 | ) |
|    Earned premiums                                                                                                                       |   | $ | 4,920 |  |   |   | $ | 3,218 |  |   |   | $ | 1,336 |  |   |   | $ | 234 |  |   |   | $ | 132 |  |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Underwriting profit (loss)                                                                                                                              |   | $ | 186 |  |   |   | $ | 151 |  |   |   | $ | (20 | ) |   |   | $ | 63 |  |   |   | $ | (8 | ) |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.  Ratios are calculated based on dollar amounts in thousands. |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Value creation ratio: This is a measure of shareholder value creation that management believes captures the contribution of the company’s insurance operations, the success of its investment strategy and the importance placed on paying cash dividends to shareholders. The value creation ratio measure is made up of two primary components: (1) rate of growth in book value per share plus (2) the ratio of dividends declared per share to beginning book value per share. Management believes this measure is useful, providing a meaningful measure of long-term progress in creating shareholder value. It is intended to be all-inclusive regarding changes in book value per share, and uses originally reported book value per share in cases where book value per share has been adjusted, such as adoption of Accounting Standards Updates with a cumulative effect of a change in accounting. |
|         |                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Written premium: Under statutory accounting rules in the U.S., property casualty written premium is the amount recorded for policies issued and recognized on an annualized basis at the effective date of the policy. Management analyzes trends in written premium to assess business efforts. The difference between written and earned premium is unearned premium. |

|                                                                                                                                         |
|-----------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars are per share)                                                                                                                 |   | Three months ended December 31, |   | Twelve months ended December 31, |
|                                                                                                                                    | 2019 |   | 2018 |   | 2019 |   | 2018 |
| Value creation ratio:                                                                                                                   |   |   |   |   |   |   |   |   |
|    End of period book value*                                                                                             |   | $ | 60.55 |  |   | $ | 48.10 |  |   | $ | 60.55 |  |   | $ | 48.10 |  |
|    Less beginning of period book value                                                                                   |   | 57.37 |  |   | 51.22 |  |   | 48.10 |  |   | 50.29 |  |
|    Change in book value                                                                                                  |   | 3.18 |  |   | (3.12 | ) |   | 12.45 |  |   | (2.19 | ) |
|    Dividend declared to shareholders                                                                                     |   | 0.56 |  |   | 0.53 |  |   | 2.24 |  |   | 2.12 |  |
|    Total value creation                                                                                                  |   | $ | 3.74 |  |   | $ | (2.59 | ) |   | $ | 14.69 |  |   | $ | (0.07 | ) |
|                                                                                                                                    |   |   |   |   |   |   |   |   |
| Value creation ratio from change in book value**                                                                                        |   | 5.5 | % |   | (6.1 | )% |   | 25.9 | % |   | (4.3 | )% |
| Value creation ratio from dividends declared to   shareholders***                                                        | 1.0 |  |   | 1.0 |  |   | 4.6 |  |   | 4.2 |  |
| Value creation ratio                                                                                                                    |   | 6.5 | % |   | (5.1 | )% |   | 30.5 | % |   | (0.1 | )% |
|                                                                                                                                    |   |   |   |   |   |   |   |   |
| *     Book value per share is calculated by dividing end of period total shareholders’ equity by end of period shares outstanding |   |   |
| **   Change in book value divided by the beginning of period book value                                                                 |   |   |
| ***  Dividend declared to shareholders divided by beginning of period book value                                                        |   |   |