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

----

|                                                                                                     |
|-----------------------------------------------------------------------------------------------------|
|                                                                                                     |  |
| Part I – Financial Information                                                                | 3 |
|                                                                                                |   |
| Item 1. Financial Statements (unaudited)                                                            | 3 |
|                                                                                                |   |
| Condensed Consolidated Balance Sheets                                                               | 3 |
|                                                                                                |   |
| Condensed Consolidated Statements of Income                                                         | 4 |
|                                                                                                |   |
| Condensed Consolidated Statements of Comprehensive Income                                           | 5 |
|                                                                                                |   |
| Condensed Consolidated Statements of Shareholders’ Equity                                     | 5 |
|                                                                                                |   |
| Condensed Consolidated Statements of Cash Flows                                                     | 6 |
|                                                                                                |   |
| Notes to Condensed Consolidated Financial Statements (unaudited)                                    | 7 |
|                                                                                                |   |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 25 |
|                                                                                                |   |
| Safe Harbor Statement                                                                               | 25 |
|                                                                                                |   |
| Corporate Financial Highlights                                                                      | 27 |
|                                                                                                |   |
| Results of Operations                                                                               | 33 |
|                                                                                                |   |
| Liquidity and Capital Resources                                                                     | 54 |
|                                                                                                |   |
| Other Matters                                                                                       | 58 |
|                                                                                                |   |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk                             | 58 |
|                                                                                                |   |
| Item 4. Controls and Procedures                                                                     | 67 |
|                                                                                                |   |
| Part II – Other Information                                                                   | 67 |
|                                                                                                |   |
| Item 1. Legal Proceedings                                                                           | 67 |
|                                                                                                |   |
| Item 1A. Risk Factors                                                                               | 67 |
|                                                                                                |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                 | 67 |
|                                                                                                |   |
| Item 6. Exhibits                                                                                    | 68 |

----

|                                                                                                                                                  |
|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                  |  |  |  |  |  |  |  |  |
| (In millions except per share data)                                                                                     |   | June 30, |   | December 31, |
|                                                                                                                                             |   | 2014 |   | 2013 |
| Assets                                                                                                                                           |   |   |  |   |   |  |
| Investments                                                                                                                                      |   |   |  |   |   |  |
| Fixed maturities, at fair value (amortized cost: 2014—$8,719; 2013—$8,638)                                                           |   | $ | 9,383 |  |   | $ | 9,121 |  |
| Equity securities, at fair value (cost: 2014—$2,582; 2013—$2,523)                                                                    |   | 4,605 |  |   | 4,375 |  |
| Other invested assets                                                                                                                            |   | 72 |  |   | 68 |  |
| Total investments                                                                                                                                |   | 14,060 |  |   | 13,564 |  |
| Cash and cash equivalents                                                                                                                        |   | 462 |  |   | 433 |  |
| Investment income receivable                                                                                                                     |   | 116 |  |   | 121 |  |
| Finance receivable                                                                                                                               |   | 80 |  |   | 85 |  |
| Premiums receivable                                                                                                                              |   | 1,462 |  |   | 1,346 |  |
| Reinsurance recoverable                                                                                                                          |   | 526 |  |   | 547 |  |
| Prepaid reinsurance premiums                                                                                                                     |   | 26 |  |   | 26 |  |
| Deferred policy acquisition costs                                                                                                                |   | 571 |  |   | 565 |  |
| Land, building and equipment, net, for company use (accumulated depreciation:     2014—$431; 2013—$420)                              |   | 203 |  |   | 210 |  |
| Other assets                                                                                                                                     |   | 98 |  |   | 73 |  |
| Separate accounts                                                                                                                                |   | 731 |  |   | 692 |  |
| Total assets                                                                                                                                     |   | $ | 18,335 |  |   | $ | 17,662 |  |
| Liabilities                                                                                                                                      |   |   |  |   |   |  |
| Insurance reserves                                                                                                                               |   |   |  |   |   |  |
| Loss and loss expense reserves                                                                                                                   |   | $ | 4,444 |  |   | $ | 4,311 |  |
| Life policy and investment contract reserves                                                                                                     |   | 2,454 |  |   | 2,390 |  |
| Unearned premiums                                                                                                                                |   | 2,110 |  |   | 1,976 |  |
| Other liabilities                                                                                                                                |   | 563 |  |   | 611 |  |
| Deferred income tax                                                                                                                              |   | 810 |  |   | 673 |  |
| Note payable                                                                                                                                     |   | 49 |  |   | 104 |  |
| Long-term debt and capital lease obligations                                                                                                     |   | 831 |  |   | 835 |  |
| Separate accounts                                                                                                                                |   | 731 |  |   | 692 |  |
| Total liabilities                                                                                                                                |   | 11,992 |  |   | 11,592 |  |
| Commitments and contingent liabilities (Note 12)                                                                                                 |   | — |  |   | — |  |
| Shareholders' Equity                                                                                                                             |   |   |  |   |   |  |
| Common stock, par value—$2 per share; (authorized: 2014 and 2013—500 million shares; issued: 2014 and 2013—198 million shares) |   | 397 |  |   | 397 |  |
| Paid-in capital                                                                                                                                  |   | 1,198 |  |   | 1,191 |  |
| Retained earnings                                                                                                                                |   | 4,299 |  |   | 4,268 |  |
| Accumulated other comprehensive income                                                                                                           |   | 1,732 |  |   | 1,504 |  |
| Treasury stock at cost (2014—34 million and 2013—35 million shares)                                                                  |   | (1,283 | ) |   | (1,290 | ) |
| Total shareholders' equity                                                                                                                       |   | 6,343 |  |   | 6,070 |  |
| Total liabilities and shareholders' equity                                                                                                       |   | $ | 18,335 |  |   | $ | 17,662 |  |
|                                                                                                                                             |   |   |   |   |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions except per share data) |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                         |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Revenues                                                     |   |   |  |   |   |  |   |   |  |   |   |  |
| Earned premiums                                              |   | $ | 1,059 |  |   | $ | 954 |  |   | $ | 2,086 |  |   | $ | 1,885 |  |
| Investment income, net of expenses                           |   | 136 |  |   | 131 |  |   | 271 |  |   | 259 |  |
| Realized investment gains, net                               |   | 14 |  |   | 14 |  |   | 36 |  |   | 55 |  |
| Fee revenues                                                 |   | 3 |  |   | 3 |  |   | 6 |  |   | 4 |  |
| Other revenues                                               |   | 2 |  |   | 2 |  |   | 4 |  |   | 4 |  |
| Total revenues                                               |   | 1,214 |  |   | 1,104 |  |   | 2,403 |  |   | 2,207 |  |
| Benefits and Expenses                                        |   |   |  |   |   |  |   |   |  |   |   |  |
| Insurance losses and policyholder benefits                   |   | 763 |  |   | 631 |  |   | 1,495 |  |   | 1,199 |  |
| Underwriting, acquisition and insurance expenses             |   | 328 |  |   | 307 |  |   | 648 |  |   | 607 |  |
| Interest expense                                             |   | 13 |  |   | 14 |  |   | 27 |  |   | 27 |  |
| Other operating expenses                                     |   | 3 |  |   | 4 |  |   | 7 |  |   | 9 |  |
|  Total benefits and expenses                            |   | 1,107 |  |   | 956 |  |   | 2,177 |  |   | 1,842 |  |
| Income Before Income Taxes                                   |   | 107 |  |   | 148 |  |   | 226 |  |   | 365 |  |
| Provision for Income Taxes                                   |   |   |  |   |   |  |   |   |  |   |   |  |
| Current                                                      |   | 18 |  |   | 37 |  |   | 38 |  |   | 91 |  |
| Deferred                                                     |   | 5 |  |   | 1 |  |   | 13 |  |   | 10 |  |
| Total provision for income taxes                             |   | 23 |  |   | 38 |  |   | 51 |  |   | 101 |  |
| Net Income                                                   |   | $ | 84 |  |   | $ | 110 |  |   | $ | 175 |  |   | $ | 264 |  |
| Per Common Share                                             |   |   |  |   |   |  |   |   |  |   |   |  |
| Net income—basic                                       |   | $ | 0.51 |  |   | $ | 0.67 |  |   | $ | 1.07 |  |   | $ | 1.62 |  |
| Net income—diluted                                     |   | 0.51 |  |   | 0.66 |  |   | 1.06 |  |   | 1.60 |  |
|                                                         |   |   |   |   |   |   |   |   |

----

|                                                                                                                             |
|-----------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  (In millions)                                                                                                    |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                                                                        |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Net Income                                                                                                                  |   | $ | 84 |  |   | $ | 110 |  |   | $ | 175 |  |   | $ | 264 |  |
| Other Comprehensive Income                                                                                                  |   |   |  |   |   |  |   |   |  |   |   |  |
| Change in unrealized gains (losses) on investments available-for-sale, net of tax of $82, ($85), $123 and $39, respectively |   | 153 |  |   | (159 | ) |   | 229 |  |   | 73 |  |
| Net change in pension actuarial loss and prior service cost, net of tax of $0, $1, $0 and $2 respectively                   |   | — |  |   | 2 |  |   | (1 | ) |   | 3 |  |
| Change in life deferred acquisition costs, life policy reserves and other, net of tax of $0, $8, $0 and $8 respectively     |   | 1 |  |   | 16 |  |   | — |  |   | 16 |  |
| Other comprehensive income (loss), net of tax                                                                               |   | 154 |  |   | (141 | ) |   | 228 |  |   | 92 |  |
| Comprehensive Income (Loss)                                                                                                 |   | $ | 238 |  |   | $ | (31 | ) |   | $ | 403 |  |   | $ | 356 |  |
|                                                                                                                        |   |   |   |   |   |   |   |   |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                           |   | Common Stock |   |   |   |   |   | AccumulatedOtherComprehensiveIncome |   |   |   | TotalShare-holders' Equity |
|                                                         |   | Outstanding Shares |   | Amount |   | Paid-in Capital |   | Retained Earnings |   |   | Treasury Stock |   |
| Balance December 31, 2012                               |   | 163 |  |   | $ | 394 |  |   | $ | 1,134 |  |   | $ | 4,021 |  |   | $ | 1,129 |  |   | $ | (1,225 | ) |   | $ | 5,453 |  |
| Net income                                                   |   | — |  |   | — |  |   | — |  |   | 264 |  |   | — |  |   | — |  |   | 264 |  |
| Other comprehensive income, net                              |   | — |  |   | — |  |   | — |  |   | — |  |   | 92 |  |   | — |  |   | 92 |  |
| Dividends declared                                           |   | — |  |   | — |  |   | — |  |   | (133 | ) |   | — |  |   | — |  |   | (133 | ) |
| Treasury stock acquired—share repurchase authorization |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Other                                                        |   | 1 |  |   | 2 |  |   | 28 |  |   | — |  |   | — |  |   | (7 | ) |   | 23 |  |
| Balance June 30, 2013                                        |   | 164 |  |   | $ | 396 |  |   | $ | 1,162 |  |   | $ | 4,152 |  |   | $ | 1,221 |  |   | $ | (1,232 | ) |   | $ | 5,699 |  |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance December 31, 2013                               |   | 163 |  |   | $ | 397 |  |   | $ | 1,191 |  |   | $ | 4,268 |  |   | $ | 1,504 |  |   | $ | (1,290 | ) |   | $ | 6,070 |  |
| Net income                                                   |   | — |  |   | — |  |   | — |  |   | 175 |  |   | — |  |   | — |  |   | 175 |  |
| Other comprehensive income, net                              |   | — |  |   | — |  |   | — |  |   | — |  |   | 228 |  |   | — |  |   | 228 |  |
| Dividends declared                                           |   | — |  |   | — |  |   | — |  |   | (144 | ) |   | — |  |   | — |  |   | (144 | ) |
| Treasury stock acquired—share repurchase authorization |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (7 | ) |   | (7 | ) |
| Other                                                        |   | 1 |  |   | — |  |   | 7 |  |   | — |  |   | — |  |   | 14 |  |   | 21 |  |
| Balance June 30, 2014                                        |   | 164 |  |   | $ | 397 |  |   | $ | 1,198 |  |   | $ | 4,299 |  |   | $ | 1,732 |  |   | $ | (1,283 | ) |   | $ | 6,343 |  |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |  |
|  (In millions)                                                          |   | Six months ended June 30, |
|                                                                              |   | 2014 |   | 2013 |
| Cash Flows From Operating Activities                                              |   |   |  |   |   |  |
| Net income                                                                        |   | $ | 175 |  |   | $ | 264 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |  |   |   |  |
| Depreciation and amortization                                                     |   | 25 |  |   | 20 |  |
| Realized gains on investments, net                                                |   | (36 | ) |   | (55 | ) |
| Stock-based compensation                                                          |   | 10 |  |   | 10 |  |
| Interest credited to contract holders                                             |   | 23 |  |   | 22 |  |
| Deferred income tax expense                                                       |   | 13 |  |   | 10 |  |
| Changes in:                                                                       |   |   |  |   |   |  |
| Investment income receivable                                                      |   | 5 |  |   | (1 | ) |
| Premiums and reinsurance receivable                                               |   | (95 | ) |   | (103 | ) |
| Deferred policy acquisition costs                                                 |   | (19 | ) |   | (39 | ) |
| Other assets                                                                      |   | (5 | ) |   | (10 | ) |
| Loss and loss expense reserves                                                    |   | 133 |  |   | 54 |  |
| Life policy reserves                                                              |   | 76 |  |   | 33 |  |
| Unearned premiums                                                                 |   | 134 |  |   | 155 |  |
| Other liabilities                                                                 |   | (72 | ) |   | (39 | ) |
| Current income tax receivable                                                     |   | (16 | ) |   | (70 | ) |
| Net cash provided by operating activities                                         |   | 351 |  |   | 251 |  |
| Cash Flows From Investing Activities                                              |   |   |  |   |   |  |
| Sale of fixed maturities                                                          |   | 24 |  |   | 14 |  |
| Call or maturity of fixed maturities                                              |   | 481 |  |   | 459 |  |
| Sale of equity securities                                                         |   | 82 |  |   | 157 |  |
| Purchase of fixed maturities                                                      |   | (584 | ) |   | (666 | ) |
| Purchase of equity securities                                                     |   | (104 | ) |   | (190 | ) |
| Investment in finance receivables                                                 |   | (9 | ) |   | (18 | ) |
| Collection of finance receivables                                                 |   | 15 |  |   | 14 |  |
|      Investment in buildings and equipment, net          |   | (5 | ) |   | (3 | ) |
| Change in other invested assets, net                                              |   | 3 |  |   | 3 |  |
| Net cash used in investing activities                                             |   | (97 | ) |   | (230 | ) |
| Cash Flows From Financing Activities                                              |   |   |  |   |   |  |
| Payment of cash dividends to shareholders                                         |   | (138 | ) |   | (130 | ) |
| Purchase of treasury shares                                                       |   | (7 | ) |   | — |  |
| Decrease in notes payable                                                         |   | (55 | ) |   | — |  |
| Proceeds from stock options exercised                                             |   | 11 |  |   | 12 |  |
| Contract holders' funds deposited                                                 |   | 45 |  |   | 45 |  |
| Contract holders' funds withdrawn                                                 |   | (75 | ) |   | (55 | ) |
| Excess tax benefits on stock-based compensation                                   |   | 2 |  |   | 9 |  |
| Other                                                                             |   | (8 | ) |   | (7 | ) |
| Net cash used in financing activities                                             |   | (225 | ) |   | (126 | ) |
| Net change in cash and cash equivalents                                           |   | 29 |  |   | (105 | ) |
| Cash and cash equivalents at beginning of year                                    |   | 433 |  |   | 487 |  |
| Cash and cash equivalents at end of period                                        |   | $ | 462 |  |   | $ | 382 |  |
| Supplemental disclosures of cash flow information:                                |   |   |  |   |   |  |
| Interest paid                                                                     |   | $ | 26 |  |   | $ | 27 |  |
| Income taxes paid                                                                 |   | 52 |  |   | 158 |  |
| Non-cash activities:                                                              |   |   |  |   |   |  |
| Conversion of securities                                                          |   | $ | 7 |  |   | $ | 54 |  |
| Equipment acquired under capital lease obligations                                |   | 7 |  |   | 17 |  |
| Cashless exercise of stock options                                                |   | 8 |  |   | 15 |  |
|                                                                              |   |   |   |   |

----

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                |   | Cost or |   |   |   |   |   |   |
|                                              |   | amortized |   | Gross unrealized |   | Fair |
| At June 30, 2014                                  |   | cost |   | gains |   | losses |   | value |
| Fixed maturity securities:                        |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political subdivisions |   | $ | 3,205 |  |   | $ | 170 |  |   | $ | 5 |  |   | $ | 3,370 |  |
| Convertibles and bonds with warrants attached     |   | 7 |  |   | — |  |   | — |  |   | 7 |  |
| United States government                          |   | 7 |  |   | — |  |   | — |  |   | 7 |  |
| Government-sponsored enterprises                  |   | 221 |  |   | — |  |   | 13 |  |   | 208 |  |
| Foreign government                                |   | 10 |  |   | — |  |   | — |  |   | 10 |  |
| Commercial mortgage-backed                        |   | 220 |  |   | 7 |  |   | 1 |  |   | 226 |  |
| Corporate                                         |   | 5,049 |  |   | 509 |  |   | 3 |  |   | 5,555 |  |
| Subtotal                                          |   | 8,719 |  |   | 686 |  |   | 22 |  |   | 9,383 |  |
| Equity securities:                                |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                   |   | 2,458 |  |   | 1,992 |  |   | 3 |  |   | 4,447 |  |
| Nonredeemable preferred equities                  |   | 124 |  |   | 35 |  |   | 1 |  |   | 158 |  |
| Subtotal                                          |   | 2,582 |  |   | 2,027 |  |   | 4 |  |   | 4,605 |  |
| Total                                             |   | $ | 11,301 |  |   | $ | 2,713 |  |   | $ | 26 |  |   | $ | 13,988 |  |
| At December 31, 2013                         |   |   |  |   |   |  |   |   |  |   |   |  |
| Fixed maturity securities:                        |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political subdivisions |   | $ | 3,107 |  |   | $ | 125 |  |   | $ | 21 |  |   | $ | 3,211 |  |
| Convertibles and bonds with warrants attached     |   | 17 |  |   | — |  |   | — |  |   | 17 |  |
| United States government                          |   | 7 |  |   | — |  |   | — |  |   | 7 |  |
| Government-sponsored enterprises                  |   | 227 |  |   | — |  |   | 27 |  |   | 200 |  |
| Foreign government                                |   | 10 |  |   | — |  |   | — |  |   | 10 |  |
| Commercial mortgage-backed                        |   | 148 |  |   | — |  |   | 5 |  |   | 143 |  |
| Corporate                                         |   | 5,122 |  |   | 433 |  |   | 22 |  |   | 5,533 |  |
| Subtotal                                          |   | 8,638 |  |   | 558 |  |   | 75 |  |   | 9,121 |  |
| Equity securities:                                |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                   |   | 2,396 |  |   | 1,818 |  |   | 1 |  |   | 4,213 |  |
| Nonredeemable preferred equities                  |   | 127 |  |   | 38 |  |   | 3 |  |   | 162 |  |
| Subtotal                                          |   | 2,523 |  |   | 1,856 |  |   | 4 |  |   | 4,375 |  |
| Total                                             |   | $ | 11,161 |  |   | $ | 2,414 |  |   | $ | 79 |  |   | $ | 13,496 |  |
|                                              |   |   |   |   |   |   |   |   |

----

|                                                                     |
|---------------------------------------------------------------------|
|                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                  |   | Less than 12 months |   | 12 months or more |   | Total |   | Total |
|                                                                |   | Fair |   | Unrealized |   | Fair |   | Unrealized |   | fair |   | unrealized |
| At June 30, 2014                                                    |   | value |   | losses |   | value |   | losses |   | value |   | losses |
| Fixed maturity securities:                                          |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political    subdivisions |   | $ | 61 |  |   | $ | 1 |  |   | $ | 267 |  |   | $ | 4 |  |   | $ | 328 |  |   | $ | 5 |  |
| United States government                                            |   | — |  |   | — |  |   | 1 |  |   | — |  |   | 1 |  |   | — |  |
| Government-sponsored enterprises                                    |   | 10 |  |   | — |  |   | 175 |  |   | 13 |  |   | 185 |  |   | 13 |  |
| Foreign government                                                  |   | — |  |   | — |  |   | 10 |  |   | — |  |   | 10 |  |   | — |  |
| Commercial mortgage-backed                                          |   | — |  |   | — |  |   | 32 |  |   | 1 |  |   | 32 |  |   | 1 |  |
| Corporate                                                           |   | 49 |  |   | — |  |   | 127 |  |   | 3 |  |   | 176 |  |   | 3 |  |
| Subtotal                                                            |   | 120 |  |   | 1 |  |   | 612 |  |   | 21 |  |   | 732 |  |   | 22 |  |
| Equity securities:                                                  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                                     |   | 39 |  |   | — |  |   | 79 |  |   | 3 |  |   | 118 |  |   | 3 |  |
| Nonredeemable preferred equities                                    |   | 5 |  |   | — |  |   | 17 |  |   | 1 |  |   | 22 |  |   | 1 |  |
| Subtotal                                                            |   | 44 |  |   | — |  |   | 96 |  |   | 4 |  |   | 140 |  |   | 4 |  |
| Total                                                               |   | $ | 164 |  |   | $ | 1 |  |   | $ | 708 |  |   | $ | 25 |  |   | $ | 872 |  |   | $ | 26 |  |
| At December 31, 2013                                           |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fixed maturity securities:                                          |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political    subdivisions |   | $ | 490 |  |   | $ | 18 |  |   | $ | 42 |  |   | $ | 3 |  |   | $ | 532 |  |   | $ | 21 |  |
| United States government                                            |   | 1 |  |   | — |  |   | — |  |   | — |  |   | 1 |  |   | — |  |
| Government-sponsored enterprises                                    |   | 199 |  |   | 27 |  |   | 1 |  |   | — |  |   | 200 |  |   | 27 |  |
| Foreign government                                                  |   | 10 |  |   | — |  |   | — |  |   | — |  |   | 10 |  |   | — |  |
| Commercial mortgage-backed                                          |   | 125 |  |   | 5 |  |   | — |  |   | — |  |   | 125 |  |   | 5 |  |
| Corporate                                                           |   | 572 |  |   | 20 |  |   | 43 |  |   | 2 |  |   | 615 |  |   | 22 |  |
| Subtotal                                                            |   | 1,397 |  |   | 70 |  |   | 86 |  |   | 5 |  |   | 1,483 |  |   | 75 |  |
| Equity securities:                                                  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                                     |   | 77 |  |   | 1 |  |   | — |  |   | — |  |   | 77 |  |   | 1 |  |
| Nonredeemable preferred equities                                    |   | 42 |  |   | 3 |  |   | — |  |   | — |  |   | 42 |  |   | 3 |  |
| Subtotal                                                            |   | 119 |  |   | 4 |  |   | — |  |   | — |  |   | 119 |  |   | 4 |  |
| Total                                                               |   | $ | 1,516 |  |   | $ | 74 |  |   | $ | 86 |  |   | $ | 5 |  |   | $ | 1,602 |  |   | $ | 79 |  |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                           |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                         |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Investment income summary:                                                   |   |   |   |   |   |   |   |   |
| Interest on fixed maturities                                                 |   | $ | 103 |  |   | $ | 103 |  |   | $ | 207 |  |   | $ | 205 |  |
| Dividends on equity securities                                               |   | 34 |  |   | 30 |  |   | 66 |  |   | 57 |  |
| Other investment income                                                      |   | 1 |  |   | — |  |   | 2 |  |   | 1 |  |
| Total                                                                        |   | 138 |  |   | 133 |  |   | 275 |  |   | 263 |  |
| Less investment expenses                                                     |   | 2 |  |   | 2 |  |   | 4 |  |   | 4 |  |
| Total                                                                        |   | $ | 136 |  |   | $ | 131 |  |   | $ | 271 |  |   | $ | 259 |  |
|                                                                         |   |   |   |   |   |   |   |   |
| Realized investment gains and losses summary:                                |   |   |  |   |   |  |   |   |  |   |   |  |
| Fixed maturities:                                                            |   |   |  |   |   |  |   |   |  |   |   |  |
| Gross realized gains                                                         |   | $ | 4 |  |   | $ | 2 |  |   | $ | 6 |  |   | $ | 4 |  |
| Gross realized losses                                                        |   | — |  |   | — |  |   | — |  |   | — |  |
| Other-than-temporary impairments                                             |   | — |  |   | — |  |   | — |  |   | (2 | ) |
| Equity securities:                                                           |   |   |  |   |   |  |   |   |  |   |   |  |
| Gross realized gains                                                         |   | 16 |  |   | 12 |  |   | 34 |  |   | 49 |  |
| Gross realized losses                                                        |   | — |  |   | — |  |   | — |  |   | — |  |
| Other-than-temporary impairments                                             |   | — |  |   | — |  |   | (1 | ) |   | — |  |
| Securities with embedded derivatives                                         |   | (3 | ) |   | — |  |   | (4 | ) |   | 1 |  |
| Other                                                                        |   | (3 | ) |   | — |  |   | 1 |  |   | 3 |  |
| Total                                                                        |   | $ | 14 |  |   | $ | 14 |  |   | $ | 36 |  |   | $ | 55 |  |
|                                                                         |   |   |   |   |   |   |   |   |
| Change in unrealized gains and losses summary:                               |   |   |  |   |   |  |   |   |  |   |   |  |
| Fixed maturities                                                             |   | $ | 93 |  |   | $ | (282 | ) |   | $ | 181 |  |   | $ | (307 | ) |
| Equity securities                                                            |   | 142 |  |   | 38 |  |   | 171 |  |   | 419 |  |
| Net change in pension actuarial loss and prior  service cost       |   | — |  |   | 3 |  |   | (1 | ) |   | 5 |  |
| Adjustment to deferred acquisition costs and life  policy reserves |   | (5 | ) |   | 26 |  |   | (8 | ) |   | 29 |  |
| Other                                                                        |   | 6 |  |   | (2 | ) |   | 8 |  |   | (5 | ) |
| Income taxes on above                                                        |   | (82 | ) |   | 76 |  |   | (123 | ) |   | (49 | ) |
| Total                                                                        |   | $ | 154 |  |   | $ | (141 | ) |   | $ | 228 |  |   | $ | 92 |  |
|                                                                         |   |   |   |   |   |   |   |   |

----

|                                                                                           |
|-------------------------------------------------------------------------------------------|
|                                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                             |   | Quoted prices inactive markets foridentical assets(Level 1) |   | Significant otherobservable inputs (Level 2) |   | Significantunobservableinputs(Level 3) |   | Total |
| At June 30, 2014                                                                          |   |   |   |   |
| Fixed maturities, available for sale:                                                     |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political subdivisions                                         |   | $ | — |  |   | $ | 3,370 |  |   | $ | — |  |   | $ | 3,370 |  |
| Convertibles and bonds with warrants attached                                             |   | — |  |   | 7 |  |   | — |  |   | 7 |  |
| United States government                                                                  |   | 7 |  |   | — |  |   | — |  |   | 7 |  |
| Government-sponsored enterprises                                                          |   | — |  |   | 208 |  |   | — |  |   | 208 |  |
| Foreign government                                                                        |   | — |  |   | 10 |  |   | — |  |   | 10 |  |
| Commercial mortgage-backed                                                                |   | — |  |   | 226 |  |   | — |  |   | 226 |  |
| Corporate                                                                                 |   | — |  |   | 5,546 |  |   | 9 |  |   | 5,555 |  |
| Subtotal                                                                                  |   | 7 |  |   | 9,367 |  |   | 9 |  |   | 9,383 |  |
| Common equities, available for sale                                                       |   | 4,447 |  |   | — |  |   | — |  |   | 4,447 |  |
| Nonredeemable preferred equities, available for sale                                      |   | — |  |   | 156 |  |   | 2 |  |   | 158 |  |
| Separate accounts taxable fixed maturities                                                |   | — |  |   | 719 |  |   | — |  |   | 719 |  |
| Top Hat Savings Plan mutual funds and common  equity (included in Other assets) |   | 17 |  |   | — |  |   | — |  |   | 17 |  |
| Total                                                                                     |   | $ | 4,471 |  |   | $ | 10,242 |  |   | $ | 11 |  |   | $ | 14,724 |  |
| At December 31, 2013                                                                 |   |   |   |   |   |   |   |   |
| Fixed maturities, available for sale:                                                     |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political subdivisions                                         |   | $ | — |  |   | $ | 3,211 |  |   | $ | — |  |   | $ | 3,211 |  |
| Convertibles and bonds with warrants attached                                             |   | — |  |   | 17 |  |   | — |  |   | 17 |  |
| United States government                                                                  |   | 7 |  |   | — |  |   | — |  |   | 7 |  |
| Government-sponsored enterprises                                                          |   | — |  |   | 200 |  |   | — |  |   | 200 |  |
| Foreign government                                                                        |   | — |  |   | 10 |  |   | — |  |   | 10 |  |
| Commercial mortgage-backed                                                                |   | — |  |   | 143 |  |   | — |  |   | 143 |  |
| Corporate                                                                                 |   | — |  |   | 5,531 |  |   | 2 |  |   | 5,533 |  |
| Subtotal                                                                                  |   | 7 |  |   | 9,112 |  |   | 2 |  |   | 9,121 |  |
| Common equities, available for sale                                                       |   | 4,213 |  |   | — |  |   | — |  |   | 4,213 |  |
| Nonredeemable preferred equities, available for sale                                      |   | — |  |   | 160 |  |   | 2 |  |   | 162 |  |
| Separate accounts taxable fixed-maturities                                                |   | — |  |   | 682 |  |   | — |  |   | 682 |  |
| Top Hat Savings Plan mutual funds and common  equity (included in Other assets) |   | 14 |  |   | — |  |   | — |  |   | 14 |  |
| Total                                                                                     |   | $ | 4,234 |  |   | $ | 9,954 |  |   | $ | 4 |  |   | $ | 14,192 |  |
|                                                                                      |   |   |   |   |   |   |   |   |

----

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  (In millions)                     |   | Asset fair value measurements using significant unobservable inputs (Level 3) |
|                                         |   | Corporatefixedmaturities |   | Commercialmortgage-backed fixed maturities |   | States,municipalitiesand politicalsubdivisionsfixed maturities |   | Nonredeemable preferredequities |   | Total |
| Beginning balance, March 31, 2014       |   | $ | 8 |  |   | $ | 5 |  |   | $ | — |  |   | $ | 2 |  |   | $ | 15 |  |
| Total gains or losses (realized/unrealized): |   |   |  |   |   |   |   |  |   |   |  |   |   |  |
| Included in net income                       |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Included in other comprehensive income       |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Purchases                                    |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Sales                                        |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Transfers into Level 3                       |   | 1 |  |   | — |  |   | — |  |   | — |  |   | 1 |  |
| Transfers out of Level 3                     |   | — |  |   | (5 | ) |   | — |  |   | — |  |   | (5 | ) |
| Ending balance, June 30, 2014           |   | $ | 9 |  |   | $ | — |  |   | $ | — |  |   | $ | 2 |  |   | $ | 11 |  |
|                                         |   |   |   |   |   |   |   |   |   |   |
| Beginning balance, March 31, 2013       |   | $ | 3 |  |   | — |  |   | $ | 1 |  |   | $ | 2 |  |   | $ | 6 |  |
| Total gains or losses (realized/unrealized): |   |   |  |   |   |   |   |  |   |   |  |   |   |  |
| Included in net income                       |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Included in other comprehensive income       |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Purchases                                    |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Sales                                        |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Transfers into Level 3                       |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Transfers out of Level 3                     |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Ending balance, June 30, 2013           |   | $ | 3 |  |   | — |  |   | $ | 1 |  |   | $ | 2 |  |   | $ | 6 |  |
|                                         |   |   |   |   |   |   |   |   |   |   |

----

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                | Asset fair value measurements using significant unobservable inputs (Level 3) |
|                                         |   | Corporatefixedmaturities |   | Commercialmortgage-backed fixed maturities |   | States,municipalitiesand politicalsubdivisionsfixed maturities |   | Nonredeemable preferredequities |   | Total |
| Beginning balance, January 1, 2014           |   | $ | 2 |  |   | $ | — |  |   | $ | — |  |   | $ | 2 |  |   | $ | 4 |  |
| Total gains or losses (realized/unrealized): |   |   |   |   |   |   |  |   |   |  |   |   |  |
| Included in net income                       |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Included in other comprehensive income       |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Purchases                                    |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Sales                                        |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Transfers into Level 3                       |   | 7 |  |   | 5 |  |   | — |  |   | — |  |   | 12 |  |
| Transfers out of Level 3                     |   | — |  |   | (5 | ) |   | — |  |   | — |  |   | (5 | ) |
| Ending balance, June 30, 2014           |   | $ | 9 |  |   | $ | — |  |   | $ | — |  |   | $ | 2 |  |   | $ | 11 |  |
|                                         |   |   |   |   |   |   |   |   |   |   |
| Beginning balance, January 1, 2013           |   | $ | 3 |  |   | $ | — |  |   | $ | 1 |  |   | $ | 1 |  |   | $ | 5 |  |
| Total gains or losses (realized/unrealized): |   |   |   |   |   |   |  |   |   |  |   |   |
| Included in net income                       |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Included in other comprehensive income       |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Purchases                                    |   | — |  |   | — |  |   | — |  |   | 1 |  |   | 1 |  |
| Sales                                        |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Transfers into Level 3                       |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Transfers out of Level 3                     |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Ending balance, June 30, 2013           |   | $ | 3 |  |   | $ | — |  |   | $ | 1 |  |   | $ | 2 |  |   | $ | 6 |  |
|                                         |   |   |   |   |   |   |   |   |   |   |

|                    |
|--------------------|
|                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions) |   |   |   |   |   | Book value |   | Principal amount |
|               |   |   |   |   |   | June 30, |   | December 31, |   | June 30, |   | December 31, |
| Interest rate |   | Year of issue |   |   |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| 6.900              | % |   | 1998 |   | Senior debentures, due 2028 |   | $ | 28 |  |   | $ | 28 |  |   | $ | 28 |  |   | $ | 28 |  |
| 6.920              | % |   | 2005 |   | Senior debentures, due 2028 |   | 391 |  |   | 391 |  |   | 391 |  |   | 391 |  |
| 6.125              | % |   | 2004 |   | Senior notes, due 2034 |   | 371 |  |   | 371 |  |   | 374 |  |   | 374 |  |
|               |  |   |   |   | Total |   | $ | 790 |  |   | $ | 790 |  |   | $ | 793 |  |   | $ | 793 |  |
|               |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                    |
|------------------------------------|
|                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                      |   | Quoted prices inactive markets foridentical assets(Level 1) |   | Significant otherobservable inputs (Level 2) |   | Significantunobservableinputs(Level 3) |   | Total |
| At June 30, 2014                   |   |   |   |   |
| Note payable                       |   | $ | — |  |   | $ | 49 |  |   | $ | — |  |   | $ | 49 |  |
| 6.900% senior debentures, due 2028 |   | — |  |   | 34 |  |   | — |  |   | 34 |  |
| 6.920% senior debentures, due 2028 |   | — |  |   | 485 |  |   | — |  |   | 485 |  |
| 6.125% senior notes, due 2034      |   | — |  |   | 432 |  |   | — |  |   | 432 |  |
| Total                              |   | $ | — |  |   | $ | 1,000 |  |   | $ | — |  |   | $ | 1,000 |  |
|                               |   |   |   |   |   |   |   |   |
| At December 31, 2013          |   |   |   |   |   |   |   |   |
| Note payable                       |   | $ | — |  |   | $ | 104 |  |   | $ | — |  |   | $ | 104 |  |
| 6.900% senior debentures, due 2028 |   | — |  |   | 30 |  |   | — |  |   | 30 |  |
| 6.920% senior debentures, due 2028 |   | — |  |   | 458 |  |   | — |  |   | 458 |  |
| 6.125% senior notes, due 2034      |   | — |  |   | 399 |  |   | — |  |   | 399 |  |
| Total                              |   | $ | — |  |   | $ | 991 |  |   | $ | — |  |   | $ | 991 |  |
|                               |   |   |   |   |   |   |   |   |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)             |   | Quoted prices inactive markets foridentical assets(Level 1) |   | Significant otherobservable inputs (Level 2) |   | Significantunobservableinputs(Level 3) |   | Total |
| At June 30, 2014          |   |   |   |   |
| Life policy loans         |   | $ | — |  |   | $ | — |  |   | $ | 43 |  |   | $ | 43 |  |
|                      |   |   |   |   |   |   |   |   |
| At December 31, 2013 |   |   |   |   |   |   |   |   |
| Life policy loans         |   | $ | — |  |   | $ | — |  |   | $ | 45 |  |   | $ | 45 |  |
|                      |   |   |   |   |   |   |   |   |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)             |   | Quoted prices inactive markets foridentical assets(Level 1) |   | Significant otherobservable inputs (Level 2) |   | Significantunobservableinputs(Level 3) |   | Total |
| At June 30, 2014          |   |   |   |   |
| Deferred annuities        |   | $ | — |  |   | $ | — |  |   | $ | 911 |  |   | $ | 911 |  |
| Structured settlements    |   | — |  |   | 218 |  |   | — |  |   | 218 |  |
| Total                     |   | $ | — |  |   | $ | 218 |  |   | $ | 911 |  |   | $ | 1,129 |  |
|                      |   |   |   |   |   |   |   |   |
| At December 31, 2013 |   |   |   |   |   |   |   |   |
| Deferred annuities        |   | $ | — |  |   | $ | — |  |   | $ | 911 |  |   | $ | 911 |  |
| Structured settlements    |   | — |  |   | 219 |  |   | — |  |   | 219 |  |
| Total                     |   | $ | — |  |   | $ | 219 |  |   | $ | 911 |  |   | $ | 1,130 |  |
|                      |   |   |   |   |   |   |   |   |

----

----

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                        |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                 |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Gross loss and loss expense reserves, beginning  of period |   | $ | 4,323 |  |   | $ | 4,173 |  |   | $ | 4,241 |  |   | $ | 4,169 |  |
| Less reinsurance receivable                                          |   | 289 |  |   | 349 |  |   | 299 |  |   | 356 |  |
| Net loss and loss expense reserves, beginning of  period   |   | 4,034 |  |   | 3,824 |  |   | 3,942 |  |   | 3,813 |  |
| Net incurred loss and loss expenses related to:                      |   |   |  |   |   |  |   |   |  |   |   |  |
| Current accident year                                                |   | 773 |  |   | 675 |  |   | 1,478 |  |   | 1,209 |  |
| Prior accident years                                                 |   | (66 | ) |   | (92 | ) |   | (95 | ) |   | (102 | ) |
| Total incurred                                                       |   | 707 |  |   | 583 |  |   | 1,383 |  |   | 1,107 |  |
| Net paid loss and loss expenses related to:                          |   |   |  |   |   |  |   |   |  |   |   |  |
| Current accident year                                                |   | 309 |  |   | 249 |  |   | 506 |  |   | 370 |  |
| Prior accident years                                                 |   | 306 |  |   | 272 |  |   | 693 |  |   | 664 |  |
| Total paid                                                           |   | 615 |  |   | 521 |  |   | 1,199 |  |   | 1,034 |  |
| Net loss and loss expense reserves, end of period                    |   | 4,126 |  |   | 3,886 |  |   | 4,126 |  |   | 3,886 |  |
| Plus reinsurance receivable                                          |   | 282 |  |   | 333 |  |   | 282 |  |   | 333 |  |
| Gross loss and loss expense reserves, end of  period       |   | $ | 4,408 |  |   | $ | 4,219 |  |   | $ | 4,408 |  |   | $ | 4,219 |  |
|                                                                 |   |   |   |   |   |   |   |   |

----

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |
| (In millions)                                      |   | June 30, 2014 |   | December 31, 2013 |
| Ordinary/traditional life                          |   | $ | 848 |  |   | $ | 815 |  |
| Universal life                                     |   | 511 |  |   | 508 |  |
| Deferred annuities                                 |   | 865 |  |   | 862 |  |
| Structured settlements                             |   | 184 |  |   | 189 |  |
| Other                                              |   | 46 |  |   | 16 |  |
| Total life policy and investment contract reserves |   | $ | 2,454 |  |   | $ | 2,390 |  |
|                                               |   |   |   |   |

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                           |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                         |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Deferred policy acquisition costs asset, beginning of  period |   | $ | 564 |  |   | $ | 491 |  |   | $ | 565 |  |   | $ | 470 |  |
| Capitalized deferred policy acquisition costs                           |   | 216 |  |   | 203 |  |   | 422 |  |   | 401 |  |
| Amortized deferred policy acquisition costs                             |   | (202 | ) |   | (183 | ) |   | (403 | ) |   | (362 | ) |
| Amortized shadow deferred policy acquisition costs                      |   | (7 | ) |   | 35 |  |   | (13 | ) |   | 37 |  |
| Deferred policy acquisition costs asset, end of  period       |   | $ | 571 |  |   | $ | 546 |  |   | $ | 571 |  |   | $ | 546 |  |
|                                                                    |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                |
|------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                                                                                  |   | Three months ended June 30, |
|                                                                                                                                           |   | 2014 |   |   | 2013 |
|                                                                                                                                           |   | Before tax |   | Income tax |   | Net |   |   | Before tax |   | Income tax |   | Net |
| Accumulated unrealized gains, net, on investments available for sale,    beginning of period                                    |   | $ | 2,452 |  |   | $ | 849 |  |   | $ | 1,603 |  |   |   | $ | 2,231 |  |   | $ | 771 |  |   | $ | 1,460 |  |
|                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income before reclassification                                                                                             |   | 252 |  |   | 87 |  |   | 165 |  |   |   | (230 | ) |   | (81 | ) |   | (149 | ) |
| Reclassification adjustment for realized investment gains, net,  included in net income                                                   |   | (17 | ) |   | (5 | ) |   | (12 | ) |   |   | (14 | ) |   | (4 | ) |   | (10 | ) |
| Effect on other comprehensive income                                                                                                           |   | 235 |  |   | 82 |  |   | 153 |  |   |   | (244 | ) |   | (85 | ) |   | (159 | ) |
| Accumulated unrealized gains, net, on investments available for sale,   end of period                                           |   | $ | 2,687 |  |   | $ | 931 |  |   | $ | 1,756 |  |   |   | $ | 1,987 |  |   | $ | 686 |  |   | $ | 1,301 |  |
|                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated unrealized losses, net, for pension obligations,   beginning of period                                              |   | $ | (19 | ) |   | $ | (6 | ) |   | $ | (13 | ) |   |   | $ | (99 | ) |   | $ | (34 | ) |   | $ | (65 | ) |
| Other comprehensive income before reclassification                                                                                             |   | — |  |   | — |  |   | — |  |   |   |  |  |   | — |  |   | — |  |
| Reclassification adjustment for amortization of actuarial loss and prior  service cost, net, included in net income                  |   | — |  |   | — |  |   | — |  |   |   | 3 |  |   | 1 |  |   | 2 |  |
| Effect on other comprehensive income                                                                                                           |   | — |  |   | — |  |   | — |  |   |   | 3 |  |   | 1 |  |   | 2 |  |
| Accumulated unrealized losses, net, for pension obligations,  end of period                                                          |   | $ | (19 | ) |   | $ | (6 | ) |   | $ | (13 | ) |   |   | $ | (96 | ) |   | $ | (33 | ) |   | $ | (63 | ) |
|                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated unrealized losses, net, on life deferred acquisition costs,    life policy reserves and other, beginning of period  |   | $ | (17 | ) |   | $ | (5 | ) |   | $ | (12 | ) |   |   | $ | (50 | ) |   | $ | (17 | ) |   | $ | (33 | ) |
| Other comprehensive income before reclassification                                                                                             |   | (2 | ) |   | — |  |   | (2 | ) |   |   | 27 |  |   | 10 |  |   | 17 |  |
| Reclassification adjustment for life deferred acquisition costs,    life policy reserves and other, net, included in net income |   | 3 |  |   | — |  |   | 3 |  |   |   | (3 | ) |   | (2 | ) |   | (1 | ) |
| Effect on other comprehensive income                                                                                                           |   | 1 |  |   | — |  |   | 1 |  |   |   | 24 |  |   | 8 |  |   | 16 |  |
| Accumulated unrealized losses, net, on life deferred acquisition costs,   life policy reserves and other, end of period         |   | $ | (16 | ) |   | $ | (5 | ) |   | $ | (11 | ) |   |   | $ | (26 | ) |   | $ | (9 | ) |   | $ | (17 | ) |
|                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated other comprehensive income, beginning of period                                                                                    |   | $ | 2,416 |  |   | $ | 838 |  |   | $ | 1,578 |  |   |   | $ | 2,082 |  |   | $ | 720 |  |   | $ | 1,362 |  |
| Change in unrealized gains, net, on investments available for sale                                                                             |   | 235 |  |   | 82 |  |   | 153 |  |   |   | (244 | ) |   | (85 | ) |   | (159 | ) |
| Change in pension obligations                                                                                                                  |   | — |  |   | — |  |   | — |  |   |   | 3 |  |   | 1 |  |   | 2 |  |
| Change in life deferred acquisition costs, life policy reserves  and other                                                           |   | 1 |  |   | — |  |   | 1 |  |   |   | 24 |  |   | 8 |  |   | 16 |  |
| Effect on other comprehensive income                                                                                                           |   | 236 |  |   | 82 |  |   | 154 |  |   |   | (217 | ) |   | (76 | ) |   | (141 | ) |
| Accumulated other comprehensive income, end of period                                                                                          |   | $ | 2,652 |  |   | $ | 920 |  |   | $ | 1,732 |  |   |   | $ | 1,865 |  |   | $ | 644 |  |   | $ | 1,221 |  |

----

|                                                                                                                                                |
|------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                                                                                  |   | Six months ended June 30, |
|                                                                                                                                           |   | 2014 |   |   | 2013 |
|                                                                                                                                           |   | Before tax |   | Income tax |   | Net |   |   | Before tax |   | Income tax |   | Net |
| Accumulated unrealized gains, net, on investments available for sale,    beginning of period                                    |   | $ | 2,335 |  |   | $ | 808 |  |   | $ | 1,527 |  |   |   | $ | 1,875 |  |   | $ | 647 |  |   | $ | 1,228 |  |
|                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income before reclassification                                                                                             |   | 387 |  |   | 135 |  |   | 252 |  |   |   | 164 |  |   | 56 |  |   | 108 |  |
| Reclassification adjustment for realized investment gains, net,  included in net income                                              |   | (35 | ) |   | (12 | ) |   | (23 | ) |   |   | (52 | ) |   | (17 | ) |   | (35 | ) |
| Effect on other comprehensive income                                                                                                           |   | 352 |  |   | 123 |  |   | 229 |  |   |   | 112 |  |   | 39 |  |   | 73 |  |
| Accumulated unrealized gains, net, on investments available for sale,   end of period                                           |   | $ | 2,687 |  |   | $ | 931 |  |   | $ | 1,756 |  |   |   | $ | 1,987 |  |   | $ | 686 |  |   | $ | 1,301 |  |
|                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated unrealized losses, net, for pension obligations,   beginning of period                                              |   | $ | (18 | ) |   | $ | (6 | ) |   | $ | (12 | ) |   |   | $ | (101 | ) |   | $ | (35 | ) |   | $ | (66 | ) |
| Other comprehensive income before reclassification                                                                                             |   | — |  |   | — |  |   | — |  |   |   | — |  |   | — |  |   | — |  |
| Reclassification adjustment for amortization of actuarial loss and prior     service cost, net, included in net income     |   | (1 | ) |   | — |  |   | (1 | ) |   |   | 5 |  |   | 2 |  |   | 3 |  |
| Effect on other comprehensive income                                                                                                           |   | (1 | ) |   | — |  |   | (1 | ) |   |   | 5 |  |   | 2 |  |   | 3 |  |
| Accumulated unrealized losses, net, for pension obligations,  end of period                                                          |   | $ | (19 | ) |   | $ | (6 | ) |   | $ | (13 | ) |   |   | $ | (96 | ) |   | $ | (33 | ) |   | $ | (63 | ) |
|                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated unrealized losses, net, on life deferred acquisition costs,    life policy reserves and other, beginning of period  |   | $ | (16 | ) |   | $ | (5 | ) |   | $ | (11 | ) |   |   | $ | (50 | ) |   | $ | (17 | ) |   | $ | (33 | ) |
| Other comprehensive income before reclassification                                                                                             |   | 1 |  |   | 1 |  |   | — |  |   |   | 27 |  |   | 10 |  |   | 17 |  |
| Reclassification adjustment for life deferred acquisition costs,    life policy reserves and other, net, included in net income |   | (1 | ) |   | (1 | ) |   | — |  |   |   | (3 | ) |   | (2 | ) |   | (1 | ) |
| Effect on other comprehensive income                                                                                                           |   | — |  |   | — |  |   | — |  |   |   | 24 |  |   | 8 |  |   | 16 |  |
| Accumulated unrealized losses, net, on life deferred acquisition costs,   life policy reserves and other, end of period         |   | $ | (16 | ) |   | $ | (5 | ) |   | $ | (11 | ) |   |   | $ | (26 | ) |   | $ | (9 | ) |   | $ | (17 | ) |
|                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated other comprehensive income, beginning of period                                                                                    |   | $ | 2,301 |  |   | $ | 797 |  |   | $ | 1,504 |  |   |   | $ | 1,724 |  |   | $ | 595 |  |   | $ | 1,129 |  |
| Change in unrealized gains, net, on investments available for sale                                                                             |   | 352 |  |   | 123 |  |   | 229 |  |   |   | 112 |  |   | 39 |  |   | 73 |  |
| Change in pension obligations                                                                                                                  |   | (1 | ) |   | — |  |   | (1 | ) |   |   | 5 |  |   | 2 |  |   | 3 |  |
| Change in life deferred acquisition costs, life policy reserves  and other                                                           |   | — |  |   | — |  |   | — |  |   |   | 24 |  |   | 8 |  |   | 16 |  |
| Effect on other comprehensive income                                                                                                           |   | 351 |  |   | 123 |  |   | 228 |  |   |   | 141 |  |   | 49 |  |   | 92 |  |
| Accumulated other comprehensive income, end of period                                                                                          |   | $ | 2,652 |  |   | $ | 920 |  |   | $ | 1,732 |  |   |   | $ | 1,865 |  |   | $ | 644 |  |   | $ | 1,221 |  |
|                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)           |   | Three months ended June 30, |   | Six months ended June 30, |
|                    |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Direct earned premiums  |   | $ | 1,048 |  |   | $ | 958 |  |   | $ | 2,067 |  |   | $ | 1,893 |  |
| Assumed earned premiums |   | 2 |  |   | 3 |  |   | 5 |  |   | 5 |  |
| Ceded earned premiums   |   | (44 | ) |   | (51 | ) |   | (87 | ) |   | (99 | ) |
| Net earned premiums     |   | $ | 1,006 |  |   | $ | 910 |  |   | $ | 1,985 |  |   | $ | 1,799 |  |
|                    |   |   |   |   |   |   |   |   |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                           |   | Three months ended June 30, |   | Six months ended June 30, |
|                                    |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Direct incurred loss and loss expenses  |   | $ | 716 |  |   | $ | 593 |  |   | $ | 1,393 |  |   | $ | 1,128 |  |
| Assumed incurred loss and loss expenses |   | 2 |  |   | 5 |  |   | 4 |  |   | 7 |  |
| Ceded incurred loss and loss expenses   |   | (11 | ) |   | (15 | ) |   | (14 | ) |   | (28 | ) |
| Net incurred loss and loss expenses     |   | $ | 707 |  |   | $ | 583 |  |   | $ | 1,383 |  |   | $ | 1,107 |  |
|                                    |   |   |   |   |   |   |   |   |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)          |   | Three months ended June 30, |   | Six months ended June 30, |
|                   |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Direct earned premiums |   | $ | 68 |  |   | $ | 58 |  |   | $ | 130 |  |   | $ | 114 |  |
| Ceded earned premiums  |   | (15 | ) |   | (14 | ) |   | (29 | ) |   | (28 | ) |
| Net earned premiums    |   | $ | 53 |  |   | $ | 44 |  |   | $ | 101 |  |   | $ | 86 |  |
|                   |   |   |   |   |   |   |   |   |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                              |   | Three months ended June 30, |   | Six months ended June 30, |
|                                       |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Direct contract holders' benefits incurred |   | $ | 68 |  |   | $ | 62 |  |   | $ | 148 |  |   | $ | 126 |  |
| Ceded contract holders' benefits incurred  |   | (12 | ) |   | (14 | ) |   | (36 | ) |   | (34 | ) |
| Net contract holders' benefits incurred    |   | $ | 56 |  |   | $ | 48 |  |   | $ | 112 |  |   | $ | 92 |  |
|                                       |   |   |   |   |   |   |   |   |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                   |   | Three months ended June 30, |   | Six months ended June 30, |
|                                            |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Tax at statutory rate                           |   | $ | 37 |  |   | 35.0 |  % |   | $ | 52 |  |   | 35.0 |  % |   | $ | 79 |  |   | 35.0 |  % |   | $ | 128 |  |   | 35.0 |  % |
|   Increase (decrease) resulting from: |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Tax-exempt income from municipal bonds          |   | (8 | ) |   | (7.5 | ) |   | (9 | ) |   | (6.1 | ) |   | (16 | ) |   | (7.1 | ) |   | (16 | ) |   | (4.4 | ) |
| Dividend received exclusion                     |   | (7 | ) |   | (6.5 | ) |   | (6 | ) |   | (4.2 | ) |   | (14 | ) |   | (6.2 | ) |   | (12 | ) |   | (3.3 | ) |
| Other                                           |   | 1 |  |   | 0.5 |  |   | 1 |  |   | 1.0 |  |   | 2 |  |   | 0.9 |  |   | 1 |  |   | 0.4 |  |
| Provision for income taxes                      |   | $ | 23 |  |   | 21.5 |  % |   | $ | 38 |  |   | 25.7 |  % |   | $ | 51 |  |   | 22.6 |  % |   | $ | 101 |  |   | 27.7 |  % |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions except per share data)              |   | Three months ended June 30, |   | Six months ended June 30, |
|                                             | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Numerator:                                       |   |   |  |   |   |  |   |   |  |   |   |  |
| Net income—basic and diluted               |   | $ | 84 |  |   | $ | 110 |  |   | $ | 175 |  |   | $ | 264 |  |
| Denominator:                                     |   |   |  |   |   |  |   |   |  |   |   |  |
| Basic weighted-average common shares outstanding |   | 163.5 |  |   | 163.5 |  |   | 163.5 |  |   | 163.3 |  |
| Effect of stock-based awards:                    |   |   |  |   |   |  |   |   |  |   |   |  |
| Stock options                                    |   | 1.0 |  |   | 1.2 |  |   | 1.0 |  |   | 1.1 |  |
| Nonvested shares                                 |   | 0.6 |  |   | 0.7 |  |   | 0.6 |  |   | 0.7 |  |
| Adjusted diluted weighted-average shares         |   | 165.1 |  |   | 165.4 |  |   | 165.1 |  |   | 165.2 |  |
| Earnings per share:                              |   |   |  |   |   |  |   |   |  |   |   |  |
| Basic                                            |   | $ | 0.51 |  |   | $ | 0.67 |  |   | $ | 1.07 |  |   | $ | 1.62 |  |
| Diluted                                          |   | 0.51 |  |   | 0.66 |  |   | 1.06 |  |   | 1.60 |  |
| Number of anti-dilutive share-based awards       |   | 0.7 |  |   | 0.3 |  |   | 0.7 |  |   | 0.4 |  |
|                                             |   |   |   |   |   |   |   |   |

----

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                         |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                  |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Service cost                                          |   | $ | 3 |  |   | $ | 3 |  |   | $ | 5 |  |   | $ | 6 |  |
| Interest cost                                         |   | 3 |  |   | 3 |  |   | 7 |  |   | 6 |  |
| Expected return on plan assets                        |   | (4 | ) |   | (4 | ) |   | (8 | ) |   | (8 | ) |
| Amortization of actuarial loss and prior service cost |   | 0 |  |   | 3 |  |   | 1 |  |   | 5 |  |
| Net periodic benefit cost                             |   | $ | 2 |  |   | $ | 5 |  |   | $ | 5 |  |   | $ | 9 |  |
|                                                  |   |   |   |   |   |   |   |   |

----

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

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

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

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

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

----

|                                                                                                    |
|----------------------------------------------------------------------------------------------------|
|                                                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                                      |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                                               |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Revenues:                                                                                          |   |   |  |   |   |  |   |   |  |   |   |  |
| Commercial lines insurance                                                                         |   |   |  |   |   |  |   |   |  |   |   |  |
| Commercial casualty                                                                                |   | $ | 234 |  |   | $ | 211 |  |   | $ | 458 |  |   | $ | 415 |  |
| Commercial property                                                                                |   | 180 |  |   | 152 |  |   | 351 |  |   | 299 |  |
| Commercial auto                                                                                    |   | 132 |  |   | 117 |  |   | 258 |  |   | 231 |  |
| Workers' compensation                                                                              |   | 95 |  |   | 87 |  |   | 187 |  |   | 175 |  |
| Specialty packages                                                                                 |   | 30 |  |   | 37 |  |   | 66 |  |   | 76 |  |
| Management liability and surety                                                                    |   | 31 |  |   | 30 |  |   | 62 |  |   | 59 |  |
| Machinery and equipment                                                                            |   | 12 |  |   | 11 |  |   | 24 |  |   | 21 |  |
| Commercial lines insurance premiums                                                                |   | 714 |  |   | 645 |  |   | 1,406 |  |   | 1,276 |  |
| Fee revenue                                                                                        |   | 1 |  |   | 1 |  |   | 2 |  |   | 1 |  |
| Total commercial lines insurance                                                                   |   | 715 |  |   | 646 |  |   | 1,408 |  |   | 1,277 |  |
| Personal lines insurance                                                                           |   |   |  |   |   |  |   |   |  |   |   |  |
| Personal auto                                                                                      |   | 117 |  |   | 109 |  |   | 233 |  |   | 216 |  |
| Homeowner                                                                                          |   | 111 |  |   | 99 |  |   | 220 |  |   | 195 |  |
| Other personal lines                                                                               |   | 30 |  |   | 29 |  |   | 59 |  |   | 57 |  |
| Personal lines insurance premiums                                                                  |   | 258 |  |   | 237 |  |   | 512 |  |   | 468 |  |
| Fee revenue                                                                                        |   | 1 |  |   | 1 |  |   | 1 |  |   | 1 |  |
|        Total personal lines insurance                           |   | 259 |  |   | 238 |  |   | 513 |  |   | 469 |  |
|                                                                                               |   |   |   |   |   |   |   |   |
| Excess and surplus lines insurance                                                                 |   | 34 |  |   | 28 |  |   | 67 |  |   | 55 |  |
|                                                                                               |   |   |   |   |   |   |   |   |
| Life insurance premiums                                                                            |   | 53 |  |   | 44 |  |   | 101 |  |   | 86 |  |
| Separate account investment management fees                                                        |   | 1 |  |   | 1 |  |   | 3 |  |   | 2 |  |
|              Total life insurance |   | 54 |  |   | 45 |  |   | 104 |  |   | 88 |  |
|                                                                                               |   |   |   |   |   |   |   |   |
| Investment operations                                                                              |   |   |   |   |   |   |   |   |
|      Investment income, net of expenses                                   |   | 136 |  |   | 131 |  |   | 271 |  |   | 259 |  |
|      Realized investment gains, net                                       |   | 14 |  |   | 14 |  |   | 36 |  |   | 55 |  |
|              Total investments    |   | 150 |  |   | 145 |  |   | 307 |  |   | 314 |  |
|                                                                                               |   |   |   |   |   |   |   |   |
| Other                                                                                              |   | 2 |  |   | 2 |  |   | 4 |  |   | 4 |  |
| Total revenues                                                                                     |   | $ | 1,214 |  |   | $ | 1,104 |  |   | $ | 2,403 |  |   | $ | 2,207 |  |
|                                                                                               |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes:                                                                 |   |   |  |   |   |  |   |   |  |   |   |  |
| Insurance underwriting results                                                                     |   |   |  |   |   |  |   |   |  |   |   |  |
| Commercial lines insurance                                                                         |   | $ | 28 |  |   | $ | 34 |  |   | $ | 30 |  |   | $ | 92 |  |
| Personal lines insurance                                                                           |   | (40 | ) |   | (1 | ) |   | (47 | ) |   | 19 |  |
| Excess and surplus lines insurance                                                                 |   | 5 |  |   | 1 |  |   | 9 |  |   | 1 |  |
| Life insurance                                                                                     |   | (1 | ) |   | 3 |  |   | (1 | ) |   | 10 |  |
| Investment operations                                                                              |   | 130 |  |   | 127 |  |   | 266 |  |   | 275 |  |
| Other                                                                                              |   | (15 | ) |   | (16 | ) |   | (31 | ) |   | (32 | ) |
| Total income before income taxes                                                                   |   | $ | 107 |  |   | $ | 148 |  |   | $ | 226 |  |   | $ | 365 |  |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |
| Identifiable assets:        |   | June 30, 2014 |   | December 31, 2013 |
| Property casualty insurance |   | $ | 2,636 |  |   | $ | 2,455 |  |
| Life insurance              |   | 1,263 |  |   | 1,225 |  |
| Investment operations       |   | 14,104 |  |   | 13,618 |  |
| Other                       |   | 332 |  |   | 364 |  |
| Total                       |   | $ | 18,335 |  |   | $ | 17,662 |  |
|                        |   |   |   |   |

----

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

----

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

----

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions except per share data)                           |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                          |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Net income and comprehensive income data:                     |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Earned premiums                                               |   | $ | 1,059 |  |   | $ | 954 |  |   | 11 |  |   | $ | 2,086 |  |   | $ | 1,885 |  |   | 11 |  |
| Investment income, net of expenses (pretax)                   |   | 136 |  |   | 131 |  |   | 4 |  |   | 271 |  |   | 259 |  |   | 5 |  |
| Realized investment gains and losses, net  (pretax) |   | 14 |  |   | 14 |  |   | 0 |  |   | 36 |  |   | 55 |  |   | (35 | ) |
| Total revenues                                                |   | 1,214 |  |   | 1,104 |  |   | 10 |  |   | 2,403 |  |   | 2,207 |  |   | 9 |  |
| Net income                                                    |   | 84 |  |   | 110 |  |   | (24 | ) |   | 175 |  |   | 264 |  |   | (34 | ) |
| Comprehensive income (loss)                                   |   | 238 |  |   | (31 | ) |   | nm |  |   | 403 |  |   | 356 |  |   | 13 |  |
| Net income—diluted                                      |   | $ | 0.51 |  |   | $ | 0.66 |  |   | (23 | ) |   | $ | 1.06 |  |   | $ | 1.60 |  |   | (34 | ) |
| Cash dividends declared                                       |   | 0.44 |  |   | 0.4075 |  |   | 8 |  |   | 0.88 |  |   | 0.815 |  |   | 8 |  |
| Adjusted weighted average shares outstanding                  |   | 165.1 |  |   | 165.4 |  |   | 0 |  |   | 165.1 |  |   | 165.2 |  |   | 0 |  |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

----

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

|                                                                               |
|-------------------------------------------------------------------------------|
|                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                          |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                          |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Value creation ratio major components:                                        |   |   |  |   |   |  |   |   |  |   |   |  |
| Net income before realized gains                                              |   | 1.2 | % |   | 1.8 |  % |   | 2.5 |  % |   | 4.2 |  % |
| Change in realized and unrealized gains,  fixed-maturity securities |   | 1.0 |  |   | (3.2 | ) |   | 2.0 |  |   | (3.6 | ) |
| Change in realized and unrealized gains, equity  securities         |   | 1.6 |  |   | 0.6 |  |   | 2.2 |  |   | 5.6 |  |
| Other                                                                         |   | 0.1 |  |   | 0.4 |  |   | (0.1 | ) |   | 0.2 |  |
|      Value creation ratio                            |   | 3.9 | % |   | (0.4 | )% |   | 6.6 |  % |   | 6.4 |  % |
|                                                                          |   |   |   |   |   |   |   |   |

|                                                                               |
|-------------------------------------------------------------------------------|
|                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars are per outstanding share)                                           |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                          |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Book value change per share:                                                  |   |   |   |   |   |   |   |   |
| End of period book value                                                      |   | $ | 38.77 |  |   | $ | 34.83 |  |   | $ | 38.77 |  |   | $ | 34.83 |  |
| Less beginning of period book value                                           |   | 37.73 |  |   | 35.41 |  |   | 37.21 |  |   | 33.48 |  |
|      Change in book value                            |   | $ | 1.04 |  |   | $ | (0.58 | ) |   | $ | 1.56 |  |   | $ | 1.35 |  |
|                                                                          |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |
| Change in book value:                                                         |   |   |  |   |   |  |   |   |  |   |   |  |
| Net income before realized gains                                              |   | $ | 0.46 |  |   | $ | 0.62 |  |   | $ | 0.93 |  |   | $ | 1.40 |  |
| Change in realized and unrealized gains,  fixed-maturity securities |   | 0.38 |  |   | (1.12 | ) |   | 0.73 |  |   | (1.21 | ) |
| Change in realized and unrealized gains, equity  securities         |   | 0.62 |  |   | 0.20 |  |   | 0.81 |  |   | 1.86 |  |
| Dividend declared to shareholders                                             |   | (0.44 | ) |   | (0.41 | ) |   | (0.88 | ) |   | (0.82 | ) |
| Other                                                                         |   | 0.02 |  |   | 0.13 |  |   | (0.03 | ) |   | 0.12 |  |
| Change in book value                                                          |   | $ | 1.04 |  |   | $ | (0.58 | ) |   | $ | 1.56 |  |   | $ | 1.35 |  |
|                                                                          |   |   |   |   |   |   |   |   |

----

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

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Premium growth – We believe our agency relationships and initiatives can lead to a property casualty written premium growth rate over any five-year period that exceeds the industry average. For the first six months of 2014, our total property casualty net written premiums’ year-over-year growth was 8 percent, comparing favorably with A.M. Best's February 2014 projection of approximately 4 percent full-year growth for the industry. The industry's growth rate excludes its mortgage and financial guaranty lines of business. Our premium growth initiatives are discussed below in Highlights of Our Strategies and Supporting Initiatives. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Combined ratio – We believe our underwriting philosophy and initiatives can generate a GAAP combined ratio over any five-year period that is consistently within the range of 95 percent to 100 percent. For the first six months of 2014, our GAAP combined ratio was 100.6 percent and our statutory combined ratio was 98.9 percent, both including 10.9 percentage points of current accident |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Investment contribution – We believe our investment philosophy and initiatives can drive investment income growth and lead to a total return on our equity investment portfolio over a five-year period that exceeds the five-year return of the Standard & Poor’s 500 Index. For the six months of 2014, pretax investment income was $271 million, up 5 percent compared with the same period in 2013. We believe our investment portfolio mix provides an appropriate balance of income stability and growth with capital appreciation potential. |

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

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

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

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Improve internal processes – Improved processes support our strategic goals, reducing internal costs and allowing us to focus more resources on providing agency services. Important improvements include continuing to streamline processing between company and agency management systems for more policies. This streamlining allows for renewal processing of qualified personal lines or small commercial lines business without intervention by an underwriter or for routing of complex work items to the most appropriate associate for optimal service. Progress during the first six months of 2014 included deploying this streamlined process for renewals of commercial umbrella, inland marine, crime and professional coverages. Beginning in April 2014, it was deployed for renewing personal lines policies. Audits of policies processed without an underwriter continue to indicate that the streamlined process is underwriting and issuing policies as intended. |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Expansion of our marketing and service capabilities – We continue to enhance our generalist approach to allow our appointed agencies to better compete in the marketplace by providing services an agent's clients want and need. Expansion initiatives include ongoing development of targeted marketing programs, adding field marketing representatives for additional agency support in selected areas and piloting additional services to select agencies to develop our new customer care center for small commercial business policies. Progress during the first six months of 2014 included entering the state of Connecticut for personal lines and expanding our excess and surplus lines field underwriting presence by adding another field marketing representative. In addition, we added two commercial lines field marketing representatives to better support agencies in recently subdivided marketing territories. We also continued efforts to develop new target market programs and to expand our pilot of a customer care center for small commercial business policies to additional agencies. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | New agency appointments – We continue to appoint new agencies to develop additional points of distribution, focusing on areas where our market share is less than 1 percent while also considering economic and catastrophe risk factors. For 2014, we initially targeted approximately 100 appointments of independent agencies. During the first six months of 2014, we appointed 50 new agencies that write, in aggregate, approximately $1.4 billion in property casualty premiums annually with various insurance carriers for an average of approximately $28 million per agency. As of June 30, 2014, a total of 1,467 agency relationships market our property casualty insurance products from 1,854 reporting locations. During the first six months of 2014, our life insurance company also appointed 51 independent life agencies that do not represent us for property casualty insurance. |

----

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Insurer Financial Strength Ratings           |
| RatingAgency                                 |   | Standard Market Property Casualty Insurance Subsidiaries |   | Life Insurance Subsidiary |   | Excess and Surplus Lines Insurance Subsidiary |   | Date of Most RecentAffirmation or Action |
|                                         |   |   |   |   |   | RatingTier |   |   |   |   |   | RatingTier |   |   |   |   |   | RatingTier |   |   |
| A.M. Best Co.                                |   | A+ |   | Superior |   | 2 of 16 |   | A |   | Excellent |   | 3 of 16 |   | A |   | Excellent |   | 3 of 16 |   | Stable outlook (12/19/13) |
| Fitch Ratings                                |   | A+ |   | Strong |   | 5 of 21 |   | A+ |   | Strong |   | 5 of 21 |   | - |   | - |   | - |   | Stable outlook (06/10/14) |
| Moody's Investors  Service              |   | A1 |   | Good |   | 5 of 21 |   | - |   | - |   | - |   | - |   | - |   | - |   | Stable outlook (04/30/13) |
| Standard & Poor's  Ratings Services |   | A |   | Strong |   | 6 of 21 |   | A |   | Strong |   | 6 of 21 |   | - |   | - |   | - |   | Positive outlook (06/18/14) |

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

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

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

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

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

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                           |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                                    |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Earned premiums                                                                         |   | $ | 1,006 |  |   | $ | 910 |  |   | 11 |  |   | $ | 1,985 |  |   | $ | 1,799 |  |   | 10 |  |
| Fee revenues                                                                            |   | 2 |  |   | 2 |  |   | 0 |  |   | 3 |  |   | 2 |  |   | 50 |  |
| Total revenues                                                                          |   | 1,008 |  |   | 912 |  |   | 11 |  |   | 1,988 |  |   | 1,801 |  |   | 10 |  |
| Loss and loss expenses from:                                                            |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Current accident year before catastrophe losses                                         |   | 653 |  |   | 591 |  |   | 10 |  |   | 1,262 |  |   | 1,107 |  |   | 14 |  |
| Current accident year catastrophe losses                                                |   | 120 |  |   | 84 |  |   | 43 |  |   | 216 |  |   | 102 |  |   | 112 |  |
| Prior accident years before catastrophe losses                                          |   | (61 | ) |   | (84 | ) |   | 27 |  |   | (81 | ) |   | (87 | ) |   | 7 |  |
| Prior accident years catastrophe losses                                                 |   | (5 | ) |   | (8 | ) |   | 38 |  |   | (14 | ) |   | (15 | ) |   | 7 |  |
| Loss and loss expenses                                                                  |   | 707 |  |   | 583 |  |   | 21 |  |   | 1,383 |  |   | 1,107 |  |   | 25 |  |
| Underwriting expenses                                                                   |   | 308 |  |   | 295 |  |   | 4 |  |   | 613 |  |   | 582 |  |   | 5 |  |
| Underwriting (loss) profit                                                              |   | $ | (7 | ) |   | $ | 34 |  |   | nm |  |   | $ | (8 | ) |   | $ | 112 |  |   | nm |  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                 |   |   |  |   |   |  |   | Pt. Change |  |   |   |  |   |   |  |   | Pt. Change |  |
|     Current accident year before catastrophe losses                 |   | 64.8 |  % |   | 64.9 |  % |   | (0.1 | ) |   | 63.6 |  % |   | 61.5 |  % |   | 2.1 |  |
|     Current accident year catastrophe losses                        |   | 11.9 |  |   | 9.2 |  |   | 2.7 |  |   | 10.9 |  |   | 5.6 |  |   | 5.3 |  |
|     Prior accident years before catastrophe losses                  |   | (6.0 | ) |   | (9.2 | ) |   | 3.2 |  |   | (4.1 | ) |   | (4.8 | ) |   | 0.7 |  |
|     Prior accident years catastrophe losses                         |   | (0.5 | ) |   | (0.9 | ) |   | 0.4 |  |   | (0.7 | ) |   | (0.8 | ) |   | 0.1 |  |
| Loss and loss expenses                                                                  |   | 70.2 |  |   | 64.0 |  |   | 6.2 |  |   | 69.7 |  |   | 61.5 |  |   | 8.2 |  |
| Underwriting expenses                                                                   |   | 30.7 |  |   | 32.4 |  |   | (1.7 | ) |   | 30.9 |  |   | 32.4 |  |   | (1.5 | ) |
| Combined ratio                                                                          |   | 100.9 |  % |   | 96.4 |  % |   | 4.5 |  |   | 100.6 |  % |   | 93.9 |  % |   | 6.7 |  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Combined ratio                                                                          |   | 100.9 |  % |   | 96.4 |  % |   | 4.5 |  |   | 100.6 |  % |   | 93.9 |  % |   | 6.7 |  |
| Contribution from catastrophe losses and prior  years reserve development     |   | 5.4 |  |   | (0.9 | ) |   | 6.3 |  |   | 6.1 |  |   | 0.0 |  |   | 6.1 |  |
| Combined ratio before catastrophe losses and  prior years reserve development |   | 95.5 |  % |   | 97.3 |  % |   | (1.8 | ) |   | 94.5 |  % |   | 93.9 |  % |   | 0.6 |  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                        |   | Three months ended June 30, |   | Six months ended June 30, |
|                                      |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Agency renewal written premiums      |   | $ | 974 |  |   | $ | 879 |  |   | 11 |  |   | $ | 1,930 |  |   | $ | 1,724 |  |   | 12 |  |
| Agency new business written premiums |   | 133 |  |   | 139 |  |   | (4 | ) |   | 256 |  |   | 274 |  |   | (7 | ) |
| Other written premiums               |   | (25 | ) |   | (34 | ) |   | 26 |  |   | (67 | ) |   | (44 | ) |   | (52 | ) |
| Net written premiums                 |   | 1,082 |  |   | 984 |  |   | 10 |  |   | 2,119 |  |   | 1,954 |  |   | 8 |  |
| Unearned premium change              |   | (76 | ) |   | (74 | ) |   | (3 | ) |   | (134 | ) |   | (155 | ) |   | 14 |  |
| Earned premiums                      |   | $ | 1,006 |  |   | $ | 910 |  |   | 11 |  |   | $ | 1,985 |  |   | $ | 1,799 |  |   | 10 |  |
|                                 |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions, net of reinsurance)          |   |   |   | Three months ended June 30, |   | Six months ended June 30, |
|                                       |   |   |   |   |   | Comm. |   | Pers. |   | E&S |   |   |  |   | Comm. |   | Pers. |   | E&S |   |   |  |
| Dates                                      |   | Event |   | Region |   | lines |   | lines |   | lines |   | Total |   | lines |   | lines |   | lines |   | Total |
| 2014                                       |   |   |   |   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Jan. 5-8                                   |   | Freezing, ice and snow, wind |   | Midwest, Northeast, South |   | $ | (1 | ) |   | $ | 1 |  |   | $ | — |  |   | $ | — |  |   | $ | 50 |  |   | $ | 25 |  |   | $ | 1 |  |   | $ | 76 |  |
| Apr. 27-May 1                              |   | Wind, hail, flood |   | Midwest, Northeast, South |   | 6 |  |   | 9 |  |   | — |  |   | 15 |  |   | 6 |  |   | 9 |  |   | — |  |   | 15 |  |
| May 10-14                                  |   | Wind, hail, flood |   | Midwest |   | 4 |  |   | 7 |  |   | — |  |   | 11 |  |   | 4 |  |   | 7 |  |   | — |  |   | 11 |  |
| May 18-23                                  |   | Wind, hail, flood |   | West, Midwest, South |   | 19 |  |   | 20 |  |   | 1 |  |   | 40 |  |   | 19 |  |   | 20 |  |   | 1 |  |   | 40 |  |
| Jun. 3-5                                   |   | Wind, hail, flood |   | Midwest |   | 12 |  |   | 2 |  |   | — |  |   | 14 |  |   | 12 |  |   | 2 |  |   | — |  |   | 14 |  |
| All other 2014 catastrophes                |   |   |   | 24 |  |   | 16 |  |   | — |  |   | 40 |  |   | 35 |  |   | 25 |  |   | — |  |   | 60 |  |
| Development on 2013 and prior catastrophes |   | (4 | ) |   | (1 | ) |   | — |  |   | (5 | ) |   | (7 | ) |   | (7 | ) |   | — |  |   | (14 | ) |
| Calendar year incurred total               |   |   |   | $ | 60 |  |   | $ | 54 |  |   | $ | 1 |  |   | $ | 115 |  |   | $ | 119 |  |   | $ | 81 |  |   | $ | 2 |  |   | $ | 202 |  |
| 2013                                       |   |   |   |   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Mar. 18-19                                 |   | Hail, wind |   | South |   | $ | 2 |  |   | $ | (2 | ) |   | $ | — |  |   | $ | — |  |   | $ | 4 |  |   | $ | 7 |  |   | $ | — |  |   | $ | 11 |  |
| Apr. 7-11                                  |   | Hail, lightning, wind |   | West, Midwest |   | 14 |  |   | 9 |  |   | — |  |   | 23 |  |   | 14 |  |   | 9 |  |   | — |  |   | 23 |  |
| Apr. 16-19                                 |   | Hail, lightning, wind |   | Midwest |   | 5 |  |   | 7 |  |   | — |  |   | 12 |  |   | 5 |  |   | 7 |  |   | — |  |   | 12 |  |
| May 18-20                                  |   | Hail, lightning, wind |   | South, Midwest, Northeast |   | 9 |  |   | 1 |  |   | — |  |   | 10 |  |   | 9 |  |   | 1 |  |   | — |  |   | 10 |  |
| All other 2013 catastrophes                |   |   |   | 21 |  |   | 18 |  |   | — |  |   | 39 |  |   | 26 |  |   | 20 |  |   | — |  |   | 46 |  |
| Development on 2012 and prior catastrophes |   | (6 | ) |   | (2 | ) |   | — |  |   | (8 | ) |   | (10 | ) |   | (5 | ) |   | — |  |   | (15 | ) |
| Calendar year incurred total               |   |   |   | $ | 45 |  |   | $ | 31 |  |   | $ | — |  |   | $ | 76 |  |   | $ | 48 |  |   | $ | 39 |  |   | $ | — |  |   | $ | 87 |  |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions, net of reinsurance)                               |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                            |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Current accident year losses greater than  $5,000,000 |   | $ | 11 |  |   | $ | 11 |  |   | 0 |  |   | $ | 12 |  |   | $ | 11 |  |   | 9 |  |
| Current accident year losses $1,000,000-  $5,000,000  |   | 52 |  |   | 31 |  |   | 68 |  |   | 74 |  |   | 62 |  |   | 19 |  |
| Large loss prior accident year reserve  development   |   | 17 |  |   | 24 |  |   | (29 | ) |   | 27 |  |   | 47 |  |   | (43 | ) |
| Total large losses incurred                                     |   | 80 |  |   | 66 |  |   | 21 |  |   | 113 |  |   | 120 |  |   | (6 | ) |
| Losses incurred but not reported                                |   | (17 | ) |   | 23 |  |   | nm |  |   | 5 |  |   | 50 |  |   | (90 | ) |
| Other losses excluding catastrophe losses                       |   | 436 |  |   | 349 |  |   | 25 |  |   | 863 |  |   | 694 |  |   | 24 |  |
| Catastrophe losses                                              |   | 112 |  |   | 75 |  |   | 49 |  |   | 197 |  |   | 84 |  |   | 135 |  |
| Total losses incurred                                           |   | $ | 611 |  |   | $ | 513 |  |   | 19 |  |   | $ | 1,178 |  |   | $ | 948 |  |   | 24 |  |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                         |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
| Current accident year losses greater than  $5,000,000 |   | 1.1 |  % |   | 1.2 | % |   | (0.1 | ) |   | 0.6 | % |   | 0.6 | % |   | 0.0 |  |
| Current accident year losses $1,000,000-  $5,000,000  |   | 5.0 |  |   | 3.5 |  |   | 1.5 |  |   | 3.8 |  |   | 3.4 |  |   | 0.4 |  |
| Large loss prior accident year reserve  development   |   | 1.7 |  |   | 2.6 |  |   | (0.9 | ) |   | 1.4 |  |   | 2.7 |  |   | (1.3 | ) |
| Total large loss ratio                                          |   | 7.8 |  |   | 7.3 |  |   | 0.5 |  |   | 5.8 |  |   | 6.7 |  |   | (0.9 | ) |
| Losses incurred but not reported                                |   | (1.6 | ) |   | 2.5 |  |   | (4.1 | ) |   | 0.2 |  |   | 2.8 |  |   | (2.6 | ) |
| Other losses excluding catastrophe losses                       |   | 43.4 |  |   | 38.3 |  |   | 5.1 |  |   | 43.5 |  |   | 38.5 |  |   | 5.0 |  |
| Catastrophe losses                                              |   | 11.1 |  |   | 8.2 |  |   | 2.9 |  |   | 9.9 |  |   | 4.7 |  |   | 5.2 |  |
| Total loss ratio                                                |   | 60.7 |  % |   | 56.3 | % |   | 4.4 |  |   | 59.4 | % |   | 52.7 | % |   | 6.7 |  |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                           |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                                         |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Earned premiums                                                                         |   | $ | 714 |  |   | $ | 645 |  |   | 11 |  |   | $ | 1,406 |  |   | $ | 1,276 |  |   | 10 |  |
| Fee revenues                                                                            |   | 1 |  |   | 1 |  |   | 0 |  |   | 2 |  |   | 1 |  |   | 100 |  |
| Total revenues                                                                          |   | 715 |  |   | 646 |  |   | 11 |  |   | 1,408 |  |   | 1,277 |  |   | 10 |  |
| Loss and loss expenses from:                                                            |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Current accident year before catastrophe losses                                         |   | 454 |  |   | 414 |  |   | 10 |  |   | 864 |  |   | 784 |  |   | 10 |  |
| Current accident year catastrophe losses                                                |   | 64 |  |   | 51 |  |   | 25 |  |   | 126 |  |   | 58 |  |   | 117 |  |
| Prior accident years before catastrophe losses                                          |   | (53 | ) |   | (60 | ) |   | 12 |  |   | (53 | ) |   | (68 | ) |   | 22 |  |
| Prior accident years catastrophe losses                                                 |   | (4 | ) |   | (6 | ) |   | 33 |  |   | (7 | ) |   | (10 | ) |   | 30 |  |
| Loss and loss expenses                                                                  |   | 461 |  |   | 399 |  |   | 16 |  |   | 930 |  |   | 764 |  |   | 22 |  |
| Underwriting expenses                                                                   |   | 226 |  |   | 213 |  |   | 6 |  |   | 448 |  |   | 421 |  |   | 6 |  |
| Underwriting profit                                                                     |   | $ | 28 |  |   | $ | 34 |  |   | (18 | ) |   | $ | 30 |  |   | $ | 92 |  |   | (67 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                 |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
| Current accident year before catastrophe losses                                         |   | 63.4 |  % |   | 64.2 |  % |   | (0.8 | ) |   | 61.5 |  % |   | 61.4 |  % |   | 0.1 |  |
| Current accident year catastrophe losses                                                |   | 9.1 |  |   | 7.9 |  |   | 1.2 |  |   | 9.0 |  |   | 4.6 |  |   | 4.4 |  |
| Prior accident years before catastrophe losses                                          |   | (7.5 | ) |   | (9.4 | ) |   | 1.9 |  |   | (3.8 | ) |   | (5.3 | ) |   | 1.5 |  |
| Prior accident years catastrophe losses                                                 |   | (0.5 | ) |   | (0.8 | ) |   | 0.3 |  |   | (0.5 | ) |   | (0.8 | ) |   | 0.3 |  |
| Loss and loss expenses                                                                  |   | 64.5 |  |   | 61.9 |  |   | 2.6 |  |   | 66.2 |  |   | 59.9 |  |   | 6.3 |  |
| Underwriting expenses                                                                   |   | 31.8 |  |   | 33.0 |  |   | (1.2 | ) |   | 31.9 |  |   | 33.0 |  |   | (1.1 | ) |
| Combined ratio                                                                          |   | 96.3 |  % |   | 94.9 |  % |   | 1.4 |  |   | 98.1 |  % |   | 92.9 |  % |   | 5.2 |  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Combined ratio                                                                          |   | 96.3 |  % |   | 94.9 |  % |   | 1.4 |  |   | 98.1 |  % |   | 92.9 |  % |   | 5.2 |  |
| Contribution from catastrophe losses and prior  years reserve development     |   | 1.1 |  |   | (2.3 | ) |   | 3.4 |  |   | 4.7 |  |   | (1.5 | ) |   | 6.2 |  |
| Combined ratio before catastrophe losses and  prior years reserve development |   | 95.2 |  % |   | 97.2 |  % |   | (2.0 | ) |   | 93.4 |  % |   | 94.4 |  % |   | (1.0 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Premiums – Commercial lines earned premiums and net written premiums rose during the second quarter and first six months of 2014 primarily due to higher renewal premiums that continued to reflect higher pricing. Lower new business written premiums for both periods sightly reduced overall premium growth. The premiums table below analyzes the primary components of earned premiums. We continue to use predictive analytics tools to improve pricing precision while also leveraging our local relationships with agents through the efforts of our teams that work closely with them. We seek to maintain appropriate pricing discipline for both new and renewal business as our agents and underwriters assess account quality to make careful decisions on a case-by-case basis whether to write or renew a policy. |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                        |   | Three months ended June 30, |   | Six months ended June 30, |
|                                 |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Agency renewal written premiums      |   | $ | 669 |  |   | $ | 602 |  |   | 11 |  |   | $ | 1,382 |  |   | $ | 1,233 |  |   | 12 |  |
| Agency new business written premiums |   | 95 |  |   | 100 |  |   | (5 | ) |   | 185 |  |   | 197 |  |   | (6 | ) |
| Other written premiums               |   | (16 | ) |   | (24 | ) |   | 33 |  |   | (48 | ) |   | (24 | ) |   | (100 | ) |
| Net written premiums                 |   | 748 |  |   | 678 |  |   | 10 |  |   | 1,519 |  |   | 1,406 |  |   | 8 |  |
| Unearned premium change              |   | (34 | ) |   | (33 | ) |   | (3 | ) |   | (113 | ) |   | (130 | ) |   | 13 |  |
| Earned premiums                      |   | $ | 714 |  |   | $ | 645 |  |   | 11 |  |   | $ | 1,406 |  |   | $ | 1,276 |  |   | 10 |  |
|                                 |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Combined ratio – The commercial lines combined ratio rose for the three and six months ended June 30, 2014, compared with the same periods of 2013, primarily due to weather-related natural catastrophe losses and loss expenses that were 1.5 and 4.7 percentage points higher. The second-quarter and first-half 2014 combined ratios also reflected higher noncatastrophe weather-related losses and a lower amount of benefit from favorable reserve development on prior accident years. |

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions, net of reinsurance)                               |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                            |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Current accident year losses greater than  $5,000,000 |   | $ | 11 |  |   | $ | 11 |  |   | 0 |  |   | $ | 12 |  |   | $ | 11 |  |   | 9 |  |
| Current accident year losses $1,000,000-   $5,000,000 |   | 47 |  |   | 28 |  |   | 68 |  |   | 64 |  |   | 55 |  |   | 16 |  |
| Large loss prior accident year reserve  development   |   | 15 |  |   | 14 |  |   | 7 |  |   | 25 |  |   | 37 |  |   | (32 | ) |
| Total large losses incurred                                     |   | 73 |  |   | 53 |  |   | 38 |  |   | 101 |  |   | 103 |  |   | (2 | ) |
| Losses incurred but not reported                                |   | (35 | ) |   | 28 |  |   | nm |  |   | (12 | ) |   | 50 |  |   | nm |  |
| Other losses excluding catastrophe losses                       |   | 292 |  |   | 228 |  |   | 28 |  |   | 574 |  |   | 454 |  |   | 26 |  |
| Catastrophe losses                                              |   | 59 |  |   | 45 |  |   | 31 |  |   | 116 |  |   | 46 |  |   | 152 |  |
| Total losses incurred                                           |   | $ | 389 |  |   | $ | 354 |  |   | 10 |  |   | $ | 779 |  |   | $ | 653 |  |   | 19 |  |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                         |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
| Current accident year losses greater than  $5,000,000 |   | 1.6 |  % |   | 1.7 | % |   | (0.1 | ) |   | 0.8 |  % |   | 0.9 | % |   | (0.1 | ) |
| Current accident year losses $1,000,000-  $5,000,000  |   | 6.5 |  |   | 4.4 |  |   | 2.1 |  |   | 4.6 |  |   | 4.3 |  |   | 0.3 |  |
| Large loss prior accident year reserve  development   |   | 2.1 |  |   | 2.2 |  |   | (0.1 | ) |   | 1.8 |  |   | 2.8 |  |   | (1.0 | ) |
| Total large loss ratio                                          |   | 10.2 |  |   | 8.3 |  |   | 1.9 |  |   | 7.2 |  |   | 8.0 |  |   | (0.8 | ) |
| Losses incurred but not reported                                |   | (4.8 | ) |   | 4.3 |  |   | (9.1 | ) |   | (0.9 | ) |   | 3.9 |  |   | (4.8 | ) |
| Other losses excluding catastrophe losses                       |   | 41.0 |  |   | 35.4 |  |   | 5.6 |  |   | 40.8 |  |   | 35.7 |  |   | 5.1 |  |
| Catastrophe losses                                              |   | 8.3 |  |   | 6.9 |  |   | 1.4 |  |   | 8.3 |  |   | 3.6 |  |   | 4.7 |  |
| Total loss ratio                                                |   | 54.7 |  % |   | 54.9 | % |   | (0.2 | ) |   | 55.4 |  % |   | 51.2 | % |   | 4.2 |  |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                   |   | Three months ended June 30, |   | Six months ended June 30, |
|                                            |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Commercial casualty:                            |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Written premiums                                |   | $ | 249 |  |   | $ | 222 |  |   | 12 |  |   | $ | 507 |  |   | $ | 459 |  |   | 10 |  |
| Earned premiums                                 |   | 234 |  |   | 211 |  |   | 11 |  |   | 458 |  |   | 415 |  |   | 10 |  |
| Current accident year before catastrophe losses |   | 61.7 |  % |   | 55.7 |  % |   |   |  |   | 59.1 |  % |   | 58.2 |  % |   |   |  |
| Current accident year catastrophe losses        |   | — |  |   | — |  |   |   |  |   | — |  |   | — |  |   |   |  |
| Prior accident years before catastrophe losses  |   | (10.5 | ) |   | (15.1 | ) |   |   |  |   | (3.6 | ) |   | (13.3 | ) |   |   |  |
| Prior accident years catastrophe losses         |   | — |  |   | — |  |   |   |  |   | — |  |   | — |  |   |   |  |
| Total loss and loss expenses ratio              |   | 51.2 |  % |   | 40.6 |  % |   |   |  |   | 55.5 |  % |   | 44.9 |  % |   |   |  |
| Commercial property:                            |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Written premiums                                |   | $ | 197 |  |   | $ | 164 |  |   | 20 |  |   | $ | 390 |  |   | $ | 330 |  |   | 18 |  |
| Earned premiums                                 |   | 180 |  |   | 152 |  |   | 18 |  |   | 351 |  |   | 299 |  |   | 17 |  |
| Current accident year before catastrophe losses |   | 50.8 |  % |   | 52.9 |  % |   |   |  |   | 52.1 |  % |   | 50.9 |  % |   |   |  |
| Current accident year catastrophe losses        |   | 25.8 |  |   | 28.4 |  |   |   |  |   | 26.7 |  |   | 15.8 |  |   |   |  |
| Prior accident years before catastrophe losses  |   | (9.8 | ) |   | (6.0 | ) |   |   |  |   | (5.3 | ) |   | (2.0 | ) |   |   |  |
| Prior accident years catastrophe losses         |   | (2.3 | ) |   | (3.2 | ) |   |   |  |   | (1.6 | ) |   | (2.6 | ) |   |   |  |
| Total loss and loss expenses ratio              |   | 64.5 |  % |   | 72.1 |  % |   |   |  |   | 71.9 |  % |   | 62.1 |  % |   |   |  |
| Commercial auto:                                |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Written premiums                                |   | $ | 144 |  |   | $ | 127 |  |   | 13 |  |   | $ | 289 |  |   | $ | 262 |  |   | 10 |  |
| Earned premiums                                 |   | 132 |  |   | 117 |  |   | 13 |  |   | 258 |  |   | 231 |  |   | 12 |  |
| Current accident year before catastrophe losses |   | 72.1 |  % |   | 76.3 |  % |   |   |  |   | 70.0 |  % |   | 68.1 |  % |   |   |  |
| Current accident year catastrophe losses        |   | 4.1 |  |   | 1.5 |  |   |   |  |   | 2.1 |  |   | 1.0 |  |   |   |  |
| Prior accident years before catastrophe losses  |   | 9.0 |  |   | (3.2 | ) |   |   |  |   | 4.5 |  |   | (0.7 | ) |   |   |  |
| Prior accident years catastrophe losses         |   | — |  |   | (0.3 | ) |   |   |  |   | (0.1 | ) |   | (0.2 | ) |   |   |  |
| Total loss and loss expenses ratio              |   | 85.2 |  % |   | 74.3 |  % |   |   |  |   | 76.5 |  % |   | 68.2 |  % |   |   |  |
| Workers' compensation:                          |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Written premiums                                |   | $ | 92 |  |   | $ | 85 |  |   | 8 |  |   | $ | 198 |  |   | $ | 198 |  |   | 0 |  |
| Earned premiums                                 |   | 95 |  |   | 87 |  |   | 9 |  |   | 187 |  |   | 175 |  |   | 7 |  |
| Current accident year before catastrophe losses |   | 83.2 |  % |   | 84.8 |  % |   |   |  |   | 80.0 |  % |   | 78.3 |  % |   |   |  |
| Current accident year catastrophe losses        |   | — |  |   | — |  |   |   |  |   | — |  |   | — |  |   |   |  |
| Prior accident years before catastrophe losses  |   | (21.2 | ) |   | (17.8 | ) |   |   |  |   | (15.8 | ) |   | (12.9 | ) |   |   |  |
| Prior accident years catastrophe losses         |   | — |  |   | — |  |   |   |  |   | — |  |   | — |  |   |   |  |
| Total loss and loss expenses ratio              |   | 62.0 |  % |   | 67.0 |  % |   |   |  |   | 64.2 |  % |   | 65.4 |  % |   |   |  |
| Specialty packages:                             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Written premiums                                |   | $ | 21 |  |   | $ | 36 |  |   | (42 | ) |   | $ | 48 |  |   | $ | 76 |  |   | (37 | ) |
| Earned premiums                                 |   | 30 |  |   | 37 |  |   | (19 | ) |   | 66 |  |   | 76 |  |   | (13 | ) |
| Current accident year before catastrophe losses |   | 76.0 |  % |   | 80.0 |  % |   |   |  |   | 69.5 |  % |   | 76.7 |  % |   |   |  |
| Current accident year catastrophe losses        |   | 42.2 |  |   | 16.1 |  |   |   |  |   | 40.9 |  |   | 11.2 |  |   |   |  |
| Prior accident years before catastrophe losses  |   | (13.0 | ) |   | (3.3 | ) |   |   |  |   | (9.2 | ) |   | (2.8 | ) |   |   |  |
| Prior accident years catastrophe losses         |   | 1.9 |  |   | (0.6 | ) |   |   |  |   | (0.7 | ) |   | (2.0 | ) |   |   |  |
| Total loss and loss expenses ratio              |   | 107.1 |  % |   | 92.2 |  % |   |   |  |   | 100.5 |  % |   | 83.1 |  % |   |   |  |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                   |   | Three months ended June 30, |   | Six months ended June 30, |
|                                            |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Management liability and surety:                |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Written premiums                                |   | $ | 32 |  |   | $ | 33 |  |   | (3 | ) |   | $ | 62 |  |   | $ | 59 |  |   | 5 |  |
| Earned premiums                                 |   | 31 |  |   | 30 |  |   | 3 |  |   | 62 |  |   | 59 |  |   | 5 |  |
| Current accident year before catastrophe losses |   | 58.0 |  % |   | 60.1 |  % |   |   |  |   | 47.7 |  % |   | 52.4 |  % |   |   |  |
| Current accident year catastrophe losses        |   | — |  |   | — |  |   |   |  |   | — |  |   | — |  |   |   |  |
| Prior accident years before catastrophe losses  |   | 5.8 |  |   | 4.8 |  |   |   |  |   | 12.8 |  |   | 32.4 |  |   |   |  |
| Prior accident years catastrophe losses         |   | — |  |   | — |  |   |   |  |   | — |  |   | — |  |   |   |  |
| Total loss and loss expenses ratio              |   | 63.8 |  % |   | 64.9 |  % |   |   |  |   | 60.5 |  % |   | 84.8 |  % |   |   |  |
| Machinery and equipment:                        |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Written premiums                                |   | $ | 13 |  |   | $ | 11 |  |   | 18 |  |   | $ | 25 |  |   | $ | 22 |  |   | 14 |  |
| Earned premiums                                 |   | 12 |  |   | 11 |  |   | 9 |  |   | 24 |  |   | 21 |  |   | 14 |  |
| Current accident year before catastrophe losses |   | 18.2 |  % |   | 45.8 |  % |   |   |  |   | 19.6 |  % |   | 30.5 |  % |   |   |  |
| Current accident year catastrophe losses        |   | — |  |   | — |  |   |   |  |   | — |  |   | — |  |   |   |  |
| Prior accident years before catastrophe losses  |   | (7.0 | ) |   | (4.9 | ) |   |   |  |   | (9.0 | ) |   | 1.5 |  |   |   |  |
| Prior accident years catastrophe losses         |   | — |  |   | — |  |   |   |  |   | — |  |   | — |  |   |   |  |
| Total loss and loss expenses ratio              |   | 11.2 |  % |   | 40.9 |  % |   |   |  |   | 10.6 |  % |   | 32.0 |  % |   |   |  |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                           |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                                    |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Earned premiums                                                                         |   | $ | 258 |  |   | $ | 237 |  |   | 9 |  |   | $ | 512 |  |   | $ | 468 |  |   | 9 |  |
| Fee revenues                                                                            |   | 1 |  |   | 1 |  |   | 0 |  |   | 1 |  |   | 1 |  |   | 0 |  |
| Total revenues                                                                          |   | 259 |  |   | 238 |  |   | 9 |  |   | 513 |  |   | 469 |  |   | 9 |  |
| Loss and loss expenses from:                                                            |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Current accident year before catastrophe losses                                         |   | 173 |  |   | 159 |  |   | 9 |  |   | 345 |  |   | 285 |  |   | 21 |  |
| Current accident year catastrophe losses                                                |   | 55 |  |   | 33 |  |   | 67 |  |   | 88 |  |   | 44 |  |   | 100 |  |
| Prior accident years before catastrophe losses                                          |   | — |  |   | (24 | ) |   | 100 |  |   | (11 | ) |   | (17 | ) |   | 35 |  |
| Prior accident years catastrophe losses                                                 |   | (1 | ) |   | (2 | ) |   | 50 |  |   | (7 | ) |   | (5 | ) |   | (40 | ) |
| Loss and loss expenses                                                                  |   | 227 |  |   | 166 |  |   | 37 |  |   | 415 |  |   | 307 |  |   | 35 |  |
| Underwriting expenses                                                                   |   | 72 |  |   | 73 |  |   | (1 | ) |   | 145 |  |   | 143 |  |   | 1 |  |
| Underwriting (loss) profit                                                              |   | $ | (40 | ) |   | $ | (1 | ) |   | nm |  |   | $ | (47 | ) |   | $ | 19 |  |   | nm |  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                 |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
| Current accident year before catastrophe losses                                         |   | 67.1 |  % |   | 66.8 |  % |   | 0.3 |  |   | 67.5 |  % |   | 60.9 |  % |   | 6.6 |  |
| Current accident year catastrophe losses                                                |   | 21.0 |  |   | 13.7 |  |   | 7.3 |  |   | 17.2 |  |   | 9.3 |  |   | 7.9 |  |
| Prior accident years before catastrophe losses                                          |   | 0.2 |  |   | (9.9 | ) |   | 10.1 |  |   | (2.2 | ) |   | (3.5 | ) |   | 1.3 |  |
| Prior accident years catastrophe losses                                                 |   | (0.6 | ) |   | (1.1 | ) |   | 0.5 |  |   | (1.5 | ) |   | (1.2 | ) |   | (0.3 | ) |
| Loss and loss expenses                                                                  |   | 87.7 |  |   | 69.5 |  |   | 18.2 |  |   | 81.0 |  |   | 65.5 |  |   | 15.5 |  |
| Underwriting expenses                                                                   |   | 28.1 |  |   | 30.9 |  |   | (2.8 | ) |   | 28.4 |  |   | 30.6 |  |   | (2.2 | ) |
| Combined ratio                                                                          |   | 115.8 |  % |   | 100.4 |  % |   | 15.4 |  |   | 109.4 |  % |   | 96.1 |  % |   | 13.3 |  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Combined ratio                                                                          |   | 115.8 |  % |   | 100.4 |  % |   | 15.4 |  |   | 109.4 |  % |   | 96.1 |  % |   | 13.3 |  |
| Contribution from catastrophe losses and prior  years reserve development     |   | 20.6 |  |   | 2.7 |  |   | 17.9 |  |   | 13.5 |  |   | 4.6 |  |   | 8.9 |  |
| Combined ratio before catastrophe losses and  prior years reserve development |   | 95.2 |  % |   | 97.7 |  % |   | (2.5 | ) |   | 95.9 |  % |   | 91.5 |  % |   | 4.4 |  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Premiums – Personal lines earned premiums and net written premiums for the second quarter and first six months of 2014 continued to grow primarily due to higher renewal premiums. The premiums table below analyzes the primary components of earned premiums. |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                        |   | Three months ended June 30, |   | Six months ended June 30, |
|                                 |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Agency renewal written premiums      |   | $ | 276 |  |   | $ | 251 |  |   | 10 |  |   | $ | 494 |  |   | $ | 446 |  |   | 11 |  |
| Agency new business written premiums |   | 24 |  |   | 30 |  |   | (20 | ) |   | 45 |  |   | 58 |  |   | (22 | ) |
| Other written premiums               |   | (6 | ) |   | (8 | ) |   | 25 |  |   | (14 | ) |   | (16 | ) |   | 13 |  |
| Net written premiums                 |   | 294 |  |   | 273 |  |   | 8 |  |   | 525 |  |   | 488 |  |   | 8 |  |
| Unearned premium change              |   | (36 | ) |   | (36 | ) |   | 0 |  |   | (13 | ) |   | (20 | ) |   | 35 |  |
| Earned premiums                      |   | $ | 258 |  |   | $ | 237 |  |   | 9 |  |   | $ | 512 |  |   | $ | 468 |  |   | 9 |  |
|                                 |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Combined ratio – The personal lines combined ratio rose for the three and six months ended June 30, 2014, compared with the same period of 2013, in part due to weather-related catastrophe losses and loss expenses that were 7.8 and 7.6 percentage points higher. |

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions, net of reinsurance)                               |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                            |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Current accident year losses greater than  $5,000,000 |   | $ | — |  |   | $ | — |  |   | nm |  |   | $ | — |  |   | $ | — |  |   | nm |  |
| Current accident year losses $1,000,000-  $5,000,000  |   | 4 |  |   | 3 |  |   | 33 |  |   | 8 |  |   | 6 |  |   | 33 |  |
| Large loss prior accident year reserve  development   |   | 2 |  |   | 8 |  |   | (75 | ) |   | 2 |  |   | 8 |  |   | (75 | ) |
| Total large losses incurred                                     |   | 6 |  |   | 11 |  |   | (45 | ) |   | 10 |  |   | 14 |  |   | (29 | ) |
| Losses incurred but not reported                                |   | 9 |  |   | (5 | ) |   | nm |  |   | 4 |  |   | (5 | ) |   | nm |  |
| Other losses excluding catastrophe losses                       |   | 138 |  |   | 109 |  |   | 27 |  |   | 276 |  |   | 222 |  |   | 24 |  |
| Catastrophe losses                                              |   | 52 |  |   | 29 |  |   | 79 |  |   | 79 |  |   | 37 |  |   | 114 |  |
| Total losses incurred                                           |   | $ | 205 |  |   | $ | 144 |  |   | 42 |  |   | $ | 369 |  |   | $ | 268 |  |   | 38 |  |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                         |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
| Current accident year losses greater than  $5,000,000 |   | — | % |   | — |  % |   | 0.0 |  |   | — | % |   | — |  % |   | 0.0 |  |
| Current accident year losses $1,000,000-  $5,000,000  |   | 1.7 |  |   | 1.3 |  |   | 0.4 |  |   | 1.5 |  |   | 1.3 |  |   | 0.2 |  |
| Large loss prior accident year reserve  development   |   | 0.6 |  |   | 3.3 |  |   | (2.7 | ) |   | 0.5 |  |   | 1.7 |  |   | (1.2 | ) |
| Total large loss ratio                                          |   | 2.3 |  |   | 4.6 |  |   | (2.3 | ) |   | 2.0 |  |   | 3.0 |  |   | (1.0 | ) |
| Losses incurred but not reported                                |   | 3.5 |  |   | (2.2 | ) |   | 5.7 |  |   | 0.8 |  |   | (1.1 | ) |   | 1.9 |  |
| Other losses excluding catastrophe losses                       |   | 53.6 |  |   | 45.8 |  |   | 7.8 |  |   | 54.0 |  |   | 47.4 |  |   | 6.6 |  |
| Catastrophe losses                                              |   | 20.0 |  |   | 12.4 |  |   | 7.6 |  |   | 15.4 |  |   | 7.9 |  |   | 7.5 |  |
| Total loss ratio                                                |   | 79.4 | % |   | 60.6 |  % |   | 18.8 |  |   | 72.2 | % |   | 57.2 |  % |   | 15.0 |  |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                   |   | Three months ended June 30, |   | Six months ended June 30, |
|                                            |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Personal auto:                                  |   |   |  |   |   |  |   |   |   |   |  |   |   |  |   |   |
| Written premiums                                |   | $ | 133 |  |   | $ | 125 |  |   | 6 |   | $ | 240 |  |   | $ | 225 |  |   | 7 |
| Earned premiums                                 |   | 117 |  |   | 109 |  |   | 7 |   | 233 |  |   | 216 |  |   | 8 |
| Current accident year before catastrophe losses |   | 80.5 |  % |   | 85.4 |  % |   |   |   | 80.1 |  % |   | 76.3 |  % |   |   |
| Current accident year catastrophe losses        |   | 4.9 |  |   | 1.4 |  |   |   |   | 2.7 |  |   | 1.4 |  |   |   |
| Prior accident years before catastrophe losses  |   | (1.7 | ) |   | (10.2 | ) |   |   |   | (2.6 | ) |   | (1.2 | ) |   |   |
| Prior accident years catastrophe losses         |   | (0.2 | ) |   | (0.4 | ) |   |   |   | (0.3 | ) |   | (0.4 | ) |   |   |
| Total loss and loss expenses ratio              |   | 83.5 |  % |   | 76.2 |  % |   |   |   | 79.9 |  % |   | 76.1 |  % |   |   |
| Homeowner:                                      |   |   |  |   |   |  |   |   |   |   |  |   |   |  |   |   |
| Written premiums                                |   | $ | 128 |  |   | $ | 116 |  |   | 10 |   | $ | 226 |  |   | $ | 205 |  |   | 10 |
| Earned premiums                                 |   | 111 |  |   | 99 |  |   | 12 |   | 220 |  |   | 195 |  |   | 13 |
| Current accident year before catastrophe losses |   | 59.5 |  % |   | 50.5 |  % |   |   |   | 60.4 |  % |   | 45.6 |  % |   |   |
| Current accident year catastrophe losses        |   | 41.5 |  |   | 30.1 |  |   |   |   | 35.0 |  |   | 19.9 |  |   |   |
| Prior accident years before catastrophe losses  |   | 3.6 |  |   | (7.4 | ) |   |   |   | (1.4 | ) |   | (4.1 | ) |   |   |
| Prior accident years catastrophe losses         |   | (0.9 | ) |   | (2.0 | ) |   |   |   | (3.2 | ) |   | (2.2 | ) |   |   |
| Total loss and loss expenses ratio              |   | 103.7 |  % |   | 71.2 |  % |   |   |   | 90.8 |  % |   | 59.2 |  % |   |   |
| Other personal:                                 |   |   |  |   |   |  |   |   |   |   |  |   |   |  |   |   |
| Written premiums                                |   | $ | 33 |  |   | $ | 32 |  |   | 3 |   | $ | 59 |  |   | $ | 58 |  |   | 2 |
| Earned premiums                                 |   | 30 |  |   | 29 |  |   | 3 |   | 59 |  |   | 57 |  |   | 4 |
| Current accident year before catastrophe losses |   | 42.3 |  % |   | 52.5 |  % |   |   |   | 44.3 |  % |   | 54.5 |  % |   |   |
| Current accident year catastrophe losses        |   | 7.9 |  |   | 4.3 |  |   |   |   | 7.8 |  |   | 2.9 |  |   |   |
| Prior accident years before catastrophe losses  |   | (5.4 | ) |   | (17.8 | ) |   |   |   | (3.6 | ) |   | (9.5 | ) |   |   |
| Prior accident years catastrophe losses         |   | (0.5 | ) |   | (0.9 | ) |   |   |   | (0.1 | ) |   | (1.1 | ) |   |   |
| Total loss and loss expenses ratio              |   | 44.3 |  % |   | 38.1 |  % |   |   |   | 48.4 |  % |   | 46.8 |  % |   |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                                       |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                                |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Earned premiums                                                                     |   | $ | 34 |  |   | $ | 28 |  |   | 21 |  |   | $ | 67 |  |   | $ | 55 |  |   | 22 |  |
| Loss and loss expenses from:                                                        |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Current accident year before catastrophe losses                                     |   | 26 |  |   | 18 |  |   | 44 |  |   | 53 |  |   | 38 |  |   | 39 |  |
| Current accident year catastrophe losses                                            |   | 1 |  |   | — |  |   | nm |  |   | 2 |  |   | — |  |   | nm |  |
| Prior accident years before catastrophe losses                                      |   | (8 | ) |   | — |  |   | nm |  |   | (17 | ) |   | (2 | ) |   | (750 | ) |
| Prior accident years catastrophe losses                                             |   | — |  |   | — |  |   | nm |  |   | — |  |   | — |  |   | nm |  |
| Loss and loss expenses                                                              |   | 19 |  |   | 18 |  |   | 6 |  |   | 38 |  |   | 36 |  |   | 6 |  |
| Underwriting expenses                                                               |   | 10 |  |   | 9 |  |   | 11 |  |   | 20 |  |   | 18 |  |   | 11 |  |
| Underwriting profit                                                                 |   | $ | 5 |  |   | $ | 1 |  |   | 400 |  |   | $ | 9 |  |   | $ | 1 |  |   | nm |  |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                             |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
| Current accident year before catastrophe losses                                     |   | 75.4 |  % |   | 65.7 |  % |   | 9.7 |  |   | 77.9 |  % |   | 69.6 |  % |   | 8.3 |  |
| Current accident year catastrophe losses                                            |   | 2.3 |  |   | 0.9 |  |   | 1.4 |  |   | 2.6 |  |   | 0.6 |  |   | 2.0 |  |
| Prior accident years before catastrophe losses                                      |   | (21.3 | ) |   | (0.7 | ) |   | (20.6 | ) |   | (24.1 | ) |   | (4.7 | ) |   | (19.4 | ) |
| Prior accident years catastrophe losses                                             |   | 0.6 |  |   | 1.0 |  |   | (0.4 | ) |   | 0.4 |  |   | 0.6 |  |   | (0.2 | ) |
| Loss and loss expenses                                                              |   | 57.0 |  |   | 66.9 |  |   | (9.9 | ) |   | 56.8 |  |   | 66.1 |  |   | (9.3 | ) |
| Underwriting expenses                                                               |   | 28.0 |  |   | 31.8 |  |   | (3.8 | ) |   | 29.1 |  |   | 32.3 |  |   | (3.2 | ) |
| Combined ratio                                                                      |   | 85.0 |  % |   | 98.7 |  % |   | (13.7 | ) |   | 85.9 |  % |   | 98.4 |  % |   | (12.5 | ) |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Combined ratio                                                                      |   | 85.0 |  % |   | 98.7 |  % |   | (13.7 | ) |   | 85.9 |  % |   | 98.4 |  % |   | (12.5 | ) |
| Contribution from catastrophe losses and prior  years reserve development |   | (18.4 | ) |   | 1.2 |  |   | (19.6 | ) |   | (21.1 | ) |   | (3.5 | ) |   | (17.6 | ) |
| Combined ratio before catastrophe losses and prior years reserve development   |   | 103.4 |  % |   | 97.5 |  % |   | 5.9 |  |   | 107.0 |  % |   | 101.9 |  % |   | 5.1 |  |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Premiums – Excess and surplus lines earned premiums and net written premiums continued to grow during the second quarter and first six months of 2014. Both renewal and new business written premiums contributed significantly to overall premium growth. |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                        |   | Three months ended June 30, |   | Six months ended June 30, |
|                                 |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Agency renewal written premiums      |   | $ | 29 |  |   | $ | 26 |  |   | 12 |  |   | $ | 54 |  |   | $ | 45 |  |   | 20 |  |
| Agency new business written premiums |   | 14 |  |   | 9 |  |   | 56 |  |   | 26 |  |   | 19 |  |   | 37 |  |
| Other written premiums               |   | (3 | ) |   | (2 | ) |   | (50 | ) |   | (5 | ) |   | (4 | ) |   | (25 | ) |
| Net written premiums                 |   | 40 |  |   | 33 |  |   | 21 |  |   | 75 |  |   | 60 |  |   | 25 |  |
| Unearned premium change              |   | (6 | ) |   | (5 | ) |   | (20 | ) |   | (8 | ) |   | (5 | ) |   | (60 | ) |
| Earned premiums                      |   | $ | 34 |  |   | $ | 28 |  |   | 21 |  |   | $ | 67 |  |   | $ | 55 |  |   | 22 |  |
|                                 |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Combined ratio – The excess and surplus lines combined ratio improved for the second quarter and first six months of 2014 by 13.7 and 12.5 percentage points compared with the same periods of 2013, primarily due to larger amounts of favorable reserve development on prior accident years. |

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions, net of reinsurance)                               |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                            |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Current accident year losses greater than  $5,000,000 |   | $ | — |  |   | $ | — |  |   | nm |  |   | $ | — |  |   | $ | — |  |   | nm |  |
| Current accident year losses $1,000,000-  $5,000,000  |   | 1 |  |   | — |  |   | 0 |  |   | 2 |  |   | 1 |  |   | nm |  |
| Large loss prior accident year reserve  development   |   | — |  |   | 2 |  |   | nm |  |   | — |  |   | 2 |  |   | nm |  |
| Total large losses incurred                                     |   | 1 |  |   | 2 |  |   | (50 | ) |   | 2 |  |   | 3 |  |   | (33 | ) |
| Losses incurred but not reported                                |   | 9 |  |   | — |  |   | nm |  |   | 13 |  |   | 5 |  |   | nm |  |
| Other losses excluding catastrophe losses                       |   | 6 |  |   | 12 |  |   | (50 | ) |   | 13 |  |   | 18 |  |   | (28 | ) |
| Catastrophe losses                                              |   | 1 |  |   | 1 |  |   | nm |  |   | 2 |  |   | 1 |  |   | nm |  |
| Total losses incurred                                           |   | $ | 17 |  |   | $ | 15 |  |   | 13 |  |   | $ | 30 |  |   | $ | 27 |  |   | 11 |  |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                         |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
| Current accident year losses greater than  $5,000,000 |   | — | % |   | — | % |   | 0.0 |  |   | — |  % |   | — | % |   | 0.0 |  |
| Current accident year losses $1,000,000-  $5,000,000  |   | 3.1 |  |   | — |  |   | 3.1 |  |   | 3.1 |  |   | 2.0 |  |   | 1.1 |  |
| Large loss prior accident year reserve  development   |   | — |  |   | 7.8 |  |   | (7.8 | ) |   | (0.1 | ) |   | 4.0 |  |   | (4.1 | ) |
| Total large loss ratio                                          |   | 3.1 |  |   | 7.8 |  |   | (4.7 | ) |   | 3.0 |  |   | 6.0 |  |   | (3.0 | ) |
| Losses incurred but not reported                                |   | 25.7 |  |   | 1.0 |  |   | 24.7 |  |   | 19.6 |  |   | 10.1 |  |   | 9.5 |  |
| Other losses excluding catastrophe losses                       |   | 15.1 |  |   | 41.4 |  |   | (26.3 | ) |   | 18.3 |  |   | 32.5 |  |   | (14.2 | ) |
| Catastrophe losses                                              |   | 2.7 |  |   | 1.9 |  |   | 0.8 |  |   | 2.8 |  |   | 1.1 |  |   | 1.7 |  |
| Total loss ratio                                                |   | 46.6 | % |   | 52.1 | % |   | (5.5 | ) |   | 43.7 |  % |   | 49.7 | % |   | (6.0 | ) |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                    |   | Three months ended June 30, |   | Six months ended June 30, |
|                                             |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Earned premiums                                  |   | $ | 53 |  |   | $ | 44 |  |   | 20 |  |   | $ | 101 |  |   | $ | 86 |  |   | 17 |  |
| Separate account investment management fees      |   | 1 |  |   | 1 |  |   | 0 |  |   | 3 |  |   | 2 |  |   | 50 |  |
| Total revenues                                   |   | 54 |  |   | 45 |  |   | 20 |  |   | 104 |  |   | 88 |  |   | 18 |  |
| Contract holders' benefits incurred              |   | 56 |  |   | 48 |  |   | 17 |  |   | 112 |  |   | 92 |  |   | 22 |  |
| Investment interest credited to contract holders |   | (20 | ) |   | (18 | ) |   | (11 | ) |   | (41 | ) |   | (39 | ) |   | (5 | ) |
| Operating expenses incurred                      |   | 19 |  |   | 12 |  |   | 58 |  |   | 34 |  |   | 25 |  |   | 36 |  |
| Total benefits and expenses                      |   | 55 |  |   | 42 |  |   | 31 |  |   | 105 |  |   | 78 |  |   | 35 |  |
| Life insurance segment (loss) profit             |   | $ | (1 | ) |   | $ | 3 |  |   | nm |  |   | $ | (1 | ) |   | $ | 10 |  |   | nm |  |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Revenues – Revenues increased for the three and six months ended June 30, 2014, primarily due to higher earned premiums from term and universal life insurance products. The unlocking of interest rate assumptions for our universal life contracts during the second quarter of 2014 accelerated the amortization of unearned front-end loads, increasing universal life earned premiums. For the comparable period of 2013, unlocking slowed the amortization of unearned front-end loads, reducing universal life earned premiums. |

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                           |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                         |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Term life insurance                                                     |   | $ | 33 |  |   | $ | 31 |  |   | 6 |  |   | $ | 65 |  |   | $ | 60 |  |   | 8 |  |
| Universal life insurance                                                |   | 12 |  |   | 4 |  |   | 200 |  |   | 20 |  |   | 9 |  |   | 122 |  |
| Other life insurance, annuity and disability  income products |   | 8 |  |   | 9 |  |   | (11 | ) |   | 16 |  |   | 17 |  |   | (6 | ) |
| Net earned premiums                                                     |   | $ | 53 |  |   | $ | 44 |  |   | 20 |  |   | $ | 101 |  |   | $ | 86 |  |   | 17 |  |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Profitability – Our life insurance segment typically reports a small profit or loss on a GAAP basis because profits from investment income spreads are included in our investment segment results. We include only investment income credited to contract holders (including interest assumed in life insurance policy reserve calculations) in our life insurance segment results. A loss of $1 million for our life insurance segment in the first six months of 2014 compared with a gain of $10 million for the same period of 2013 is largely due to less favorable mortality experience in 2014. |

----

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                                           |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                                         |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Total investment income, net of expenses, pretax                        |   | $ | 136 |  |   | $ | 131 |  |   | 4 |  |   | $ | 271 |  |   | $ | 259 |  |   | 5 |  |
| Investment interest credited to contract holders                        |   | (20 | ) |   | (18 | ) |   | (11 | ) |   | (41 | ) |   | (39 | ) |   | (5 | ) |
| Realized investment gains and losses summary:                           |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Realized investment gains and losses                                    |   | 17 |  |   | 14 |  |   | 21 |  |   | 41 |  |   | 56 |  |   | (27 | ) |
| Change in fair value of securities with  embedded derivatives |   | (3 | ) |   | — |  |   | nm |  |   | (4 | ) |   | 1 |  |   | nm |  |
| Other-than-temporary impairment charges                                 |   | — |  |   | — |  |   | nm |  |   | (1 | ) |   | (2 | ) |   | 50 |  |
| Total realized investment gains and losses                              |   | 14 |  |   | 14 |  |   | 0 |  |   | 36 |  |   | 55 |  |   | (35 | ) |
| Investment operations profit                                            |   | $ | 130 |  |   | $ | 127 |  |   | 2 |  |   | $ | 266 |  |   | $ | 275 |  |   | (3 | ) |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                          |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                   |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Investment income:                                     |   |   |  |   |   |  |   |   |   |   |  |   |   |  |   |   |
| Interest                                               |   | $ | 103 |  |   | $ | 103 |  |   | 0 |   | $ | 207 |  |   | $ | 205 |  |   | 1 |
| Dividends                                              |   | 34 |  |   | 30 |  |   | 13 |   | 66 |  |   | 57 |  |   | 16 |
| Other                                                  |   | 1 |  |   | — |  |   | nm |   | 2 |  |   | 1 |  |   | 100 |
| Less investment expenses                               |   | 2 |  |   | 2 |  |   | 0 |   | 4 |  |   | 4 |  |   | 0 |
| Total investment income, net of expenses, pretax       |   | 136 |  |   | 131 |  |   | 4 |   | 271 |  |   | 259 |  |   | 5 |
| Less income taxes                                      |   | 33 |  |   | 32 |  |   | 3 |   | 65 |  |   | 63 |  |   | 3 |
| Total investment income, net of expenses, after-tax    |   | $ | 103 |  |   | $ | 99 |  |   | 4 |   | $ | 206 |  |   | $ | 196 |  |   | 5 |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effective tax rate                                     |   | 23.8 | % |   | 24.1 | % |   |   |   | 23.9 | % |   | 24.2 | % |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average invested assets plus cash and cash equivalents |   | $ | 13,743 |  |   | $ | 12,661 |  |   |   |   | $ | 13,686 |  |   | $ | 12,451 |  |   |   |
| Average yield pretax                                   |   | 3.96 | % |   | 4.14 | % |   |   |   | 3.96 | % |   | 4.16 | % |   |   |
| Average yield after-tax                                |   | 3.00 |  |   | 3.13 |  |   |   |   | 3.10 |  |   | 3.15 |  |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effective fixed-maturity tax rate                      |   | 27.1 |  |   | 27.1 |  |   |   |   | 27.1 | % |   | 27.0 | % |   |   |
| Average fixed-maturity at amortized cost               |   | $ | 8,664 |  |   | $ | 8,376 |  |   |   |   | $ | 8,679 |  |   | $ | 8,325 |  |   |   |
| Average fixed-maturity yield pretax                    |   | 4.76 | % |   | 4.92 | % |   |   |   | 4.77 | % |   | 4.92 | % |   |   |
| Average fixed-maturity yield after-tax                 |   | 3.47 |  |   | 3.59 |  |   |   |   | 3.48 |  |   | 3.60 |  |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                            |
|---------|--------------------------------------------------------------------------------------------|
| • | $34 million in net gains from the sale of various common and preferred stock holdings |

|         |                                                                      |
|---------|----------------------------------------------------------------------|
| • | $6 million in net gains from fixed-maturity security sales and calls |

|         |                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $3 million in other net realized losses, including $4 million in losses from changes in fair value of securities with embedded derivatives |

|         |                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------|
| • | $1 million in OTTI charges to write down one fixed-maturity security and three equity securities |

----

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)          |   | Three months ended June 30, |   | Six months ended June 30, |
|                   |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Fixed maturities:      |   |   |  |   |   |  |   |   |  |   |   |  |
| Utilities              |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 1 |  |
| Municipal              |   | — |  |   | — |  |   | — |  |   | 1 |  |
| Total fixed maturities |   | — |  |   | — |  |   | — |  |   | 2 |  |
| Common equities:       |   |   |  |   |   |  |   |   |  |   |   |  |
| Energy                 |   | — |  |   | — |  |   | 1 |  |   | — |  |
| Total common equities  |   | — |  |   | — |  |   | 1 |  |   | — |  |
| Total                  |   | $ | — |  |   | $ | — |  |   | $ | 1 |  |   | $ | 2 |  |
|                   |   |   |   |   |   |   |   |   |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                         |   | Three months ended June 30, |   | Six months ended June 30, |
|                                  |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Interest and fees on loans and leases |   | $ | 1 |  |   | $ | 1 |  |   | 0 |  |   | $ | 3 |  |   | $ | 3 |  |   | 0 |  |
| Other revenues                        |   | 1 |  |   | 1 |  |   | 0 |  |   | 1 |  |   | 1 |  |   | 0 |  |
| Total revenues                        |   | 2 |  |   | 2 |  |   | 0 |  |   | 4 |  |   | 4 |  |   | 0 |  |
| Interest expense                      |   | 13 |  |   | 14 |  |   | (7 | ) |   | 27 |  |   | 27 |  |   | 0 |  |
| Operating expenses                    |   | 4 |  |   | 4 |  |   | 0 |  |   | 8 |  |   | 9 |  |   | (11 | ) |
| Total expenses                        |   | 17 |  |   | 18 |  |   | (6 | ) |   | 35 |  |   | 36 |  |   | (3 | ) |
| Other loss                            |   | $ | (15 | ) |   | $ | (16 | ) |   | 6 |  |   | $ | (31 | ) |   | $ | (32 | ) |   | 3 |  |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                               |   | Three months ended June 30, |   | Six months ended June 30, |
|                                                        |   | 2014 |   | 2013 |   | % Change |   | 2014 |   | 2013 |   | % Change |
| Premiums collected                                          |   | $ | 1,064 |  |   | $ | 973 |  |   | 9 |  |   | $ | 2,116 |  |   | $ | 1,933 |  |   | 9 |  |
| Loss and loss expenses paid                                 |   | (615 | ) |   | (521 | ) |   | (18 | ) |   | (1,199 | ) |   | (1,034 | ) |   | (16 | ) |
| Commissions and other underwriting expenses  paid |   | (285 | ) |   | (264 | ) |   | (8 | ) |   | (692 | ) |   | (634 | ) |   | (9 | ) |
| Cash flow from underwriting                                 |   | 164 |  |   | 188 |  |   | (13 | ) |   | 225 |  |   | 265 |  |   | (15 | ) |
| Investment income received                                  |   | 92 |  |   | 88 |  |   | 5 |  |   | 186 |  |   | 175 |  |   | 6 |  |
| Cash flow from operations                                   |   | $ | 256 |  |   | $ | 276 |  |   | (7 | ) |   | $ | 411 |  |   | $ | 440 |  |   | (7 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |

----

|         |                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Commissions – Commissions paid were $431 million in the first six months of 2014. Commission payments generally track with written premiums, except for annual profit-sharing commissions typically paid during the first quarter of the year. |

|         |                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Other underwriting expenses – Many of our underwriting expenses are not contractual obligations, but reflect the ongoing expenses of our business. Noncommission underwriting expenses paid were $261 million in the first six months of 2014. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In addition to contractual obligations for hardware and software, we anticipate capitalizing approximately $5 million in spending for key technology initiatives in 2014. Capitalized development costs related to key technology initiatives were $3 million in the first six months of 2014. These activities are conducted at our discretion, and we have no material contractual obligations for activities planned as part of these projects. |

----

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)              |   | Loss reserves |   | Loss |   | Total |   |   |
|                            |   | Case |   | IBNR |   | expense |   | gross |   | Percent |
| At June 30, 2014                |   | reserves |   | reserves |   | reserves |   | reserves |   | of total |
| Commercial lines insurance:     |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Commercial casualty             |   | $ | 822 |  |   | $ | 390 |  |   | $ | 495 |  |   | $ | 1,707 |  |   | 38.7 | % |
| Commercial property             |   | 242 |  |   | 3 |  |   | 37 |  |   | 282 |  |   | 6.4 |  |
| Commercial auto                 |   | 277 |  |   | 56 |  |   | 72 |  |   | 405 |  |   | 9.2 |  |
| Workers' compensation           |   | 410 |  |   | 545 |  |   | 90 |  |   | 1,045 |  |   | 23.7 |  |
| Specialty packages              |   | 91 |  |   | 1 |  |   | 23 |  |   | 115 |  |   | 2.6 |  |
| Management liability and surety |   | 118 |  |   | 11 |  |   | 71 |  |   | 200 |  |   | 4.5 |  |
| Machinery and equipment         |   | 1 |  |   | — |  |   | 2 |  |   | 3 |  |   | 0.1 |  |
| Subtotal                        |   | 1,961 |  |   | 1,006 |  |   | 790 |  |   | 3,757 |  |   | 85.2 |  |
| Personal lines insurance:       |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Personal auto                   |   | 185 |  |   | (11 | ) |   | 63 |  |   | 237 |  |   | 5.4 |  |
| Homeowner                       |   | 107 |  |   | 15 |  |   | 26 |  |   | 148 |  |   | 3.4 |  |
| Other personal                  |   | 48 |  |   | 32 |  |   | 5 |  |   | 85 |  |   | 1.9 |  |
| Subtotal                        |   | 340 |  |   | 36 |  |   | 94 |  |   | 470 |  |   | 10.7 |  |
| Excess and surplus lines        |   | 73 |  |   | 68 |  |   | 40 |  |   | 181 |  |   | 4.1 |  |
| Total                           |   | $ | 2,374 |  |   | $ | 1,110 |  |   | $ | 924 |  |   | $ | 4,408 |  |   | 100.0 | % |
| At December 31, 2013       |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Commercial lines insurance:     |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Commercial casualty             |   | $ | 790 |  |   | $ | 393 |  |   | $ | 496 |  |   | $ | 1,679 |  |   | 39.6 | % |
| Commercial property             |   | 189 |  |   | 30 |  |   | 37 |  |   | 256 |  |   | 6.0 |  |
| Commercial auto                 |   | 264 |  |   | 40 |  |   | 69 |  |   | 373 |  |   | 8.8 |  |
| Workers' compensation           |   | 421 |  |   | 522 |  |   | 95 |  |   | 1,038 |  |   | 24.5 |  |
| Specialty packages              |   | 72 |  |   | 8 |  |   | 25 |  |   | 105 |  |   | 2.5 |  |
| Management liability and surety |   | 139 |  |   | 3 |  |   | 68 |  |   | 210 |  |   | 5.0 |  |
| Machinery and equipment         |   | — |  |   | 4 |  |   | 2 |  |   | 6 |  |   | 0.1 |  |
| Subtotal                        |   | 1,875 |  |   | 1,000 |  |   | 792 |  |   | 3,667 |  |   | 86.5 |  |
| Personal lines insurance:       |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Personal auto                   |   | 178 |  |   | (18 | ) |   | 61 |  |   | 221 |  |   | 5.2 |  |
| Homeowner                       |   | 80 |  |   | 9 |  |   | 24 |  |   | 113 |  |   | 2.7 |  |
| Other personal                  |   | 46 |  |   | 32 |  |   | 5 |  |   | 83 |  |   | 1.9 |  |
| Subtotal                        |   | 304 |  |   | 23 |  |   | 90 |  |   | 417 |  |   | 9.8 |  |
| Excess and surplus lines        |   | 65 |  |   | 55 |  |   | 37 |  |   | 157 |  |   | 3.7 |  |
| Total                           |   | $ | 2,244 |  |   | $ | 1,078 |  |   | $ | 919 |  |   | $ | 4,241 |  |   | 100.0 | % |
|                            |   |   |   |   |   |   |   |   |   |   |

----

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                          |   | At June 30, 2014 |   | At December 31, 2013 |
|                                        |   | Cost oramortized cost |   | Percent tototal |   | Fair value |   | Percent tototal |   | Cost oramortized cost |   | Percentto total |   | Fair value |   | Percent tototal |
| Taxable fixed maturities                    |   | $ | 5,798 |  |   | 51.3 | % |   | $ | 6,328 |  |   | 45.3 | % |   | $ | 5,814 |  |   | 52.1 | % |   | $ | 6,211 |  |   | 46.0 | % |
| Tax-exempt fixed  maturities      |   | 2,921 |  |   | 25.8 |  |   | 3,055 |  |   | 21.8 |  |   | 2,824 |  |   | 25.3 |  |   | 2,910 |  |   | 21.6 |  |
| Common equities                             |   | 2,458 |  |   | 21.8 |  |   | 4,447 |  |   | 31.8 |  |   | 2,396 |  |   | 21.5 |  |   | 4,213 |  |   | 31.2 |  |
| Nonredeemable  preferred equities |   | 124 |  |   | 1.1 |  |   | 158 |  |   | 1.1 |  |   | 127 |  |   | 1.1 |  |   | 162 |  |   | 1.2 |  |
| Total                                       |   | $ | 11,301 |  |   | 100.0 | % |   | $ | 13,988 |  |   | 100.0 | % |   | $ | 11,161 |  |   | 100.0 | % |   | $ | 13,496 |  |   | 100.0 | % |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                               |   | At June 30, 2014 |   | At December 31, 2013 |
|                                                        |   | Fair |   | Percent |   | Fair |   | Percent |
|                                                        |   | value |   | to total |   | value |   | to total |
| Moody's Ratings and Standard & Poor's Ratings combined: |   |   |  |   |   |  |   |   |  |   |   |  |
| Aaa, Aa, A, AAA, AA, A                                      |   | $ | 5,677 |  |   | 60.5 | % |   | $ | 5,468 |  |   | 59.9 | % |
| Baa, BBB                                                    |   | 3,220 |  |   | 34.3 |  |   | 3,197 |  |   | 35.1 |  |
| Ba, BB                                                      |   | 252 |  |   | 2.7 |  |   | 231 |  |   | 2.5 |  |
| B, B                                                        |   | 16 |  |   | 0.2 |  |   | 16 |  |   | 0.2 |  |
| Caa, CCC, Ca                                                |   | 3 |  |   | 0.0 |  |   | 4 |  |   | 0.0 |  |
| Nonrated                                                    |   | 215 |  |   | 2.3 |  |   | 205 |  |   | 2.3 |  |
| Total                                                       |   | $ | 9,383 |  |   | 100.0 | % |   | $ | 9,121 |  |   | 100.0 | % |
|                                                        |   |   |   |   |   |   |   |   |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |
|                                     |   | At June 30, 2014 |   | At December 31, 2013 |
| Weighted average yield-to-amortized cost |   | 4.8 | % |   | 4.9 | % |
| Weighted average maturity                |   | 6.3 | yrs |   | 6.2 | yrs |
| Effective duration                       |   | 4.4 | yrs |   | 4.5 | yrs |
|                                     |   |   |   |   |   |   |

----

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |
| (In millions)                                     |   | At June 30, 2014 |   | At December 31, 2013 |
| Investment-grade corporate                        |   | $ | 5,290 |  |   | $ | 5,293 |  |
| States, municipalities and political subdivisions |   | 315 |  |   | 301 |  |
| Below investment-grade corporate                  |   | 265 |  |   | 240 |  |
| Commercial mortgage backed                        |   | 226 |  |   | 143 |  |
| Government sponsored enterprises                  |   | 208 |  |   | 200 |  |
| Foreign government                                |   | 10 |  |   | 10 |  |
| Convertibles and bonds with warrants attached     |   | 7 |  |   | 17 |  |
| United States government                          |   | 7 |  |   | 7 |  |
| Total                                             |   | $ | 6,328 |  |   | $ | 6,211 |  |
|                                              |   |   |   |   |

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)        |   |   |   |   |   |   |   |   |   |   |
|                      |   | Local issued general |   | Special revenue |   | State issued general |   |   |   | Percent of |
| At June 30, 2014          |   | obligation bonds |   | bonds |   | obligation bonds |   | Total |   | total |
| Texas                     |   | $ | 371 |  |   | $ | 74 |  |   | $ | — |  |   | $ | 445 |  |   | 14.6 | % |
| Indiana                   |   | 1 |  |   | 234 |  |   | — |  |   | 235 |  |   | 7.7 |  |
| Michigan                  |   | 208 |  |   | 10 |  |   | — |  |   | 218 |  |   | 7.1 |  |
| Ohio                      |   | 130 |  |   | 79 |  |   | 9 |  |   | 218 |  |   | 7.1 |  |
| Illinois                  |   | 174 |  |   | 18 |  |   | — |  |   | 192 |  |   | 6.3 |  |
| Washington                |   | 151 |  |   | 31 |  |   | 7 |  |   | 189 |  |   | 6.2 |  |
| Wisconsin                 |   | 95 |  |   | 28 |  |   | 2 |  |   | 125 |  |   | 4.1 |  |
| Pennsylvania              |   | 96 |  |   | 10 |  |   | 10 |  |   | 116 |  |   | 3.8 |  |
| Arizona                   |   | 73 |  |   | 34 |  |   | — |  |   | 107 |  |   | 3.5 |  |
| Florida                   |   | 26 |  |   | 72 |  |   | — |  |   | 98 |  |   | 3.2 |  |
| New York                  |   | 54 |  |   | 36 |  |   | 4 |  |   | 94 |  |   | 3.1 |  |
| Colorado                  |   | 48 |  |   | 25 |  |   | — |  |   | 73 |  |   | 2.4 |  |
| Kansas                    |   | 45 |  |   | 20 |  |   | — |  |   | 65 |  |   | 2.1 |  |
| New Jersey                |   | 45 |  |   | 20 |  |   | — |  |   | 65 |  |   | 2.1 |  |
| Kentucky                  |   | 4 |  |   | 52 |  |   | — |  |   | 56 |  |   | 1.8 |  |
| All other states          |   | 438 |  |   | 275 |  |   | 46 |  |   | 759 |  |   | 24.9 |  |
| Total                     |   | $ | 1,959 |  |   | $ | 1,018 |  |   | $ | 78 |  |   | $ | 3,055 |  |   | 100.0 | % |
| At December 31, 2013 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Texas                     |   | $ | 385 |  |   | $ | 66 |  |   | $ | — |  |   | $ | 451 |  |   | 15.5 | % |
| Michigan                  |   | 238 |  |   | 9 |  |   | — |  |   | 247 |  |   | 8.5 |  |
| Indiana                   |   | 8 |  |   | 232 |  |   | — |  |   | 240 |  |   | 8.2 |  |
| Ohio                      |   | 119 |  |   | 87 |  |   | 6 |  |   | 212 |  |   | 7.3 |  |
| Illinois                  |   | 184 |  |   | 19 |  |   | — |  |   | 203 |  |   | 7.0 |  |
| Washington                |   | 150 |  |   | 32 |  |   | 5 |  |   | 187 |  |   | 6.4 |  |
| Wisconsin                 |   | 108 |  |   | 32 |  |   | 2 |  |   | 142 |  |   | 4.9 |  |
| Pennsylvania              |   | 93 |  |   | 9 |  |   | 9 |  |   | 111 |  |   | 3.8 |  |
| Arizona                   |   | 55 |  |   | 31 |  |   | — |  |   | 86 |  |   | 3.0 |  |
| Florida                   |   | 24 |  |   | 62 |  |   | — |  |   | 86 |  |   | 3.0 |  |
| New York                  |   | 48 |  |   | 31 |  |   | 4 |  |   | 83 |  |   | 2.9 |  |
| Colorado                  |   | 45 |  |   | 17 |  |   | — |  |   | 62 |  |   | 2.1 |  |
| New Jersey                |   | 44 |  |   | 17 |  |   | — |  |   | 61 |  |   | 2.1 |  |
| Minnesota                 |   | 42 |  |   | 7 |  |   | 2 |  |   | 51 |  |   | 1.8 |  |
| Utah                      |   | 31 |  |   | 19 |  |   | — |  |   | 50 |  |   | 1.7 |  |
| All other states          |   | 338 |  |   | 270 |  |   | 30 |  |   | 638 |  |   | 21.8 |  |
| Total                     |   | $ | 1,912 |  |   | $ | 940 |  |   | $ | 58 |  |   | $ | 2,910 |  |   | 100.0 | % |
|                      |   |   |   |   |   |   |   |   |   |   |

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)        |   | Interest rate shift in basis points |
|                      |   | -200 |   | -100 |   | — |   | 100 |   | 200 |
| At June 30, 2014          |   | $ | 10,232 |  |   | $ | 9,804 |  |   | $ | 9,383 |  |   | $ | 8,962 |  |   | $ | 8,554 |  |
| At December 31, 2013 |   | $ | 9,968 |  |   | $ | 9,545 |  |   | $ | 9,121 |  |   | $ | 8,708 |  |   | $ | 8,316 |  |
|                      |   |   |   |   |   |   |   |   |   |   |

----

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |
|                   | Percent of Publicly Traded Common Stock Portfolio |
|                   | At June 30, 2014 |   | At December 31, 2013 |
|                   | Cincinnati Financial |   | S&P 500 IndustryWeightings |   | CincinnatiFinancial |   | S&P 500 IndustryWeightings |
| Sector:                |   |  |   |   |  |   |   |  |   |   |  |
| Information technology | 19.1 | % |   | 19.0 | % |   | 18.7 | % |   | 18.6 | % |
| Industrials            | 14.2 |  |   | 10.5 |  |   | 14.0 |  |   | 10.9 |  |
| Healthcare             | 11.5 |  |   | 13.4 |  |   | 11.5 |  |   | 13.0 |  |
| Financial              | 11.4 |  |   | 16.0 |  |   | 12.0 |  |   | 16.2 |  |
| Energy                 | 11.0 |  |   | 10.7 |  |   | 10.5 |  |   | 10.3 |  |
| Consumer staples       | 10.3 |  |   | 9.6 |  |   | 10.5 |  |   | 9.8 |  |
| Consumer discretionary | 9.6 |  |   | 11.9 |  |   | 9.8 |  |   | 12.5 |  |
| Materials              | 5.6 |  |   | 3.5 |  |   | 5.7 |  |   | 3.5 |  |
| Utilities              | 4.4 |  |   | 3.0 |  |   | 4.2 |  |   | 2.9 |  |
| Telecomm services      | 2.9 |  |   | 2.4 |  |   | 3.1 |  |   | 2.3 |  |
| Total                  | 100.0 | % |   | 100.0 | % |   | 100.0 | % |   | 100.0 | % |
|                   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 308 of the 309 holdings had fair value between 90 percent and 100 percent of amortized cost at June 30, 2014. Six of these 308 holdings are equity securities that may be subject to OTTI charges taken through earnings should they not recover by the recovery dates we determined. The fair value of these six equity securities was $140 million, and they accounted for $4 million in unrealized losses. The remaining 302 securities primarily consist of fixed-maturity securities whose current valuation is largely the result of interest rate factors. The fair value of these 302 securities was $721 million, and they accounted for $21 million in unrealized losses. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | One of the 309 holdings had fair values between 70 percent and 90 percent of amortized cost at June 30, 2014. It is a fixed-maturity security that we believe will continue to pay interest and ultimately pay principal upon maturity. The issuer of this securities has strong cash flow to service its debt and meet its contractual obligation to make principal payments. The fair value of this security was $11 million, and it accounted for $1 million in unrealized losses. |

----

|         |                                                                                      |
|---------|--------------------------------------------------------------------------------------|
| • | No securities were trading below 70 percent of amortized cost at June 30, 2014. |

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                     |   | Less than 12 months |   | 12 months or more |   | Total |   | Total |
|                                              |   | Fair |   | Unrealized |   | Fair |   | Unrealized |   | fair |   | unrealized |
| At June 30, 2014                                  |   | value |   | losses |   | value |   | losses |   | value |   | losses |
| Fixed maturity securities:                        |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political subdivisions |   | $ | 61 |  |   | $ | 1 |  |   | $ | 267 |  |   | $ | 4 |  |   | $ | 328 |  |   | $ | 5 |  |
| United States government                          |   | — |  |   | — |  |   | 1 |  |   | — |  |   | 1 |  |   | — |  |
| Government-sponsored enterprises                  |   | 10 |  |   | — |  |   | 175 |  |   | 13 |  |   | 185 |  |   | 13 |  |
| Foreign government                                |   | — |  |   | — |  |   | 10 |  |   | — |  |   | 10 |  |   | — |  |
| Commercial mortgage-backed                        |   | — |  |   | — |  |   | 32 |  |   | 1 |  |   | 32 |  |   | 1 |  |
| Corporate                                         |   | 49 |  |   | — |  |   | 127 |  |   | 3 |  |   | 176 |  |   | 3 |  |
| Subtotal                                          |   | 120 |  |   | 1 |  |   | 612 |  |   | 21 |  |   | 732 |  |   | 22 |  |
| Equity securities:                                |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                   |   | 39 |  |   | — |  |   | 79 |  |   | 3 |  |   | 118 |  |   | 3 |  |
| Nonredeemable preferred equities                  |   | 5 |  |   | — |  |   | 17 |  |   | 1 |  |   | 22 |  |   | 1 |  |
| Subtotal                                          |   | 44 |  |   | — |  |   | 96 |  |   | 4 |  |   | 140 |  |   | 4 |  |
| Total                                             |   | $ | 164 |  |   | $ | 1 |  |   | $ | 708 |  |   | $ | 25 |  |   | $ | 872 |  |   | $ | 26 |  |
| At December 31, 2013                         |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fixed maturity securities:                        |   |   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| States, municipalities and political subdivisions |   | $ | 490 |  |   | $ | 18 |  |   | $ | 42 |  |   | $ | 3 |  |   | $ | 532 |  |   | $ | 21 |  |
| United States government                          |   | 1 |  |   | — |  |   | — |  |   | — |  |   | 1 |  |   | — |  |
| Government-sponsored enterprises                  |   | 199 |  |   | 27 |  |   | 1 |  |   | — |  |   | 200 |  |   | 27 |  |
| Foreign government                                |   | 10 |  |   | — |  |   | — |  |   | — |  |   | 10 |  |   | — |  |
| Commercial mortgage-backed                        |   | 125 |  |   | 5 |  |   | — |  |   | — |  |   | 125 |  |   | 5 |  |
| Corporate                                         |   | 572 |  |   | 20 |  |   | 43 |  |   | 2 |  |   | 615 |  |   | 22 |  |
| Subtotal                                          |   | 1,397 |  |   | 70 |  |   | 86 |  |   | 5 |  |   | 1,483 |  |   | 75 |  |
| Equity securities:                                |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Common equities                                   |   | 77 |  |   | 1 |  |   | — |  |   | — |  |   | 77 |  |   | 1 |  |
| Nonredeemable preferred equities                  |   | 42 |  |   | 3 |  |   | — |  |   | — |  |   | 42 |  |   | 3 |  |
| Subtotal                                          |   | 119 |  |   | 4 |  |   | — |  |   | — |  |   | 119 |  |   | 4 |  |
| Total                                             |   | $ | 1,516 |  |   | $ | 74 |  |   | $ | 86 |  |   | $ | 5 |  |   | $ | 1,602 |  |   | $ | 79 |  |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                                             |   |   |   |   |   |   |   |   |   |   |
| At June 30, 2014                                               |   | Numberof issues |   | Cost or amortizedcost |   | Fair value |   | Gross unrealized gain/loss |   | Grossinvestmentincome |
| Taxable fixed maturities:                                      |   |   |   |   |   |   |   |   |   |   |
| Fair valued below 70% of amortized cost                        |   | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Fair valued at 70% to less than 100% of amortized cost         |   | 86 |  |   | 423 |  |   | 407 |  |   | (16 | ) |   | 7 |  |
| Fair valued at 100% and above of amortized cost                |   | 1,310 |  |   | 5,375 |  |   | 5,921 |  |   | 546 |  |   | 142 |  |
| Securities sold in current year                                |   | — |  |   | — |  |   | — |  |   | — |  |   | 4 |  |
| Total                                                          |   | 1,396 |  |   | 5,798 |  |   | 6,328 |  |   | 530 |  |   | 153 |  |
| Tax-exempt fixed maturities:                                   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fair valued below 70% of amortized cost                        |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Fair valued at 70% to less than 100% of amortized cost         |   | 217 |  |   | 331 |  |   | 325 |  |   | (6 | ) |   | 3 |  |
| Fair valued at 100% and above of amortized cost                |   | 1,240 |  |   | 2,590 |  |   | 2,730 |  |   | 140 |  |   | 49 |  |
| Securities sold in current year                                |   | — |  |   | — |  |   | — |  |   | — |  |   | 2 |  |
| Total                                                          |   | 1,457 |  |   | 2,921 |  |   | 3,055 |  |   | 134 |  |   | 54 |  |
| Common equities:                                               |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fair valued below 70% of cost                                  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Fair valued at 70% to less than 100% of cost                   |   | 2 |  |   | 121 |  |   | 118 |  |   | (3 | ) |   | 2 |  |
| Fair valued at 100% and above of cost                          |   | 72 |  |   | 2,337 |  |   | 4,329 |  |   | 1,992 |  |   | 59 |  |
| Securities sold in current year                                |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total                                                          |   | 74 |  |   | 2,458 |  |   | 4,447 |  |   | 1,989 |  |   | 61 |  |
| Nonredeemable preferred equities:                              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fair valued below 70% of cost                                  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Fair valued at 70% to less than 100% of cost                   |   | 4 |  |   | 23 |  |   | 22 |  |   | (1 | ) |   | 1 |  |
| Fair valued at 100% and above of cost                          |   | 22 |  |   | 101 |  |   | 136 |  |   | 35 |  |   | 4 |  |
| Securities sold in current year                                |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total                                                          |   | 26 |  |   | 124 |  |   | 158 |  |   | 34 |  |   | 5 |  |
| Portfolio summary:                                             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fair valued below 70% of cost or amortized cost                |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Fair valued at 70% to less than 100% of cost or amortized cost |   | 309 |  |   | 898 |  |   | 872 |  |   | (26 | ) |   | 13 |  |
| Fair valued at 100% and above of cost or amortized cost        |   | 2,644 |  |   | 10,403 |  |   | 13,116 |  |   | 2,713 |  |   | 254 |  |
| Investment income on securities sold in current year           |   | — |  |   | — |  |   | — |  |   | — |  |   | 6 |  |
| Total                                                          |   | 2,953 |  |   | $ | 11,301 |  |   | $ | 13,988 |  |   | $ | 2,687 |  |   | $ | 273 |  |
|                                                           |   |   |   |   |   |   |   |   |   |   |
| At December 31, 2013                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Portfolio summary:                                             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Fair valued below 70% of cost or amortized cost                |   | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Fair valued at 70% to less than 100% of cost or amortized cost |   | 556 |  |   | 1,681 |  |   | 1,602 |  |   | (79 | ) |   | 41 |  |
| Fair valued at 100% and above of cost or amortized cost        |   | 2,323 |  |   | 9,480 |  |   | 11,894 |  |   | 2,414 |  |   | 471 |  |
| Investment income on securities sold in current year           |   | — |  |   | — |  |   | — |  |   | — |  |   | 23 |  |
| Total                                                          |   | 2,879 |  |   | $ | 11,161 |  |   | $ | 13,496 |  |   | $ | 2,335 |  |   | $ | 535 |  |
|                                                           |   |   |   |   |   |   |   |   |   |   |

----

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

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

|                  |
|------------------|
|                  |  |  |  |  |  |  |  |  |  |  |  |  |
| Period           |   | Total number of shares purchased |   | Average price paid per share |   | Total number of shares purchased as part ofpublicly announcedplans or programs |   | Maximum number ofshares that may yet bepurchased under theplans or programs |
| April 1-30, 2014 |   | — |  |   | — |  |   | — |  |   | 5,399,493 |  |
| May 1-31, 2014   |   | — |  |   | — |  |   | — |  |   | 5,399,493 |  |
| June 1-30, 2014  |   | — |  |   | — |  |   | — |  |   | 5,399,493 |  |
| Totals           |   | — |  |   | — |  |   | — |  |   |   |  |
|             |   |   |   |   |   |   |   |   |

----

|             |
|-------------|
|             |  |  |
| Exhibit No. |   | Exhibit Description |
| 3.1         |   | Amended and Restated Articles of Incorporation of Cincinnati Financial Corporation (incorporated by reference to the company’s 2010 Annual Report on Form 10-K dated February 25, 2011, Exhibit 3.1) |
| 3.2         |   | Regulations of Cincinnati Financial Corporation, as amended through May 1, 2010 (incorporated by reference to the company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, Exhibit 3.2) |
| 10.1        |   | Amended and Restated Credit Agreement by and among Cincinnati Financial Corporation, CFC Investment Company, PNC Bank, N.A. as Administrative Agent, PNC Capital Markets, LLC, as Sole Bookrunner and Joint Lead Arranger, Fifth Third Bank, N.A., as Joint Lead Arranger and Syndication Agent, The Huntington National Bank and U.S. Bank, N.A., as Documentary Agents, dated May 13, 2014 (incorporated by reference to Exhibit 10.1 filed with the company’s Current Report on Form 8-K dated May 13, 2014) |
| 31A         |   | Certification pursuant to Section 302 of the Sarbanes Oxley Act of 2002 – Chief Executive Officer |
| 31B         |   | Certification pursuant to Section 302 of the Sarbanes Oxley Act of 2002 – Chief Financial Officer |
| 32          |   | Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002 |
| 101.INS     |   | XBRL Instance Document |
| 101.SCH     |   | XBRL Taxonomy Extension Schema Document |
| 101.CAL     |   | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF     |   | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB     |   | XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE     |   | XBRL Taxonomy Extension Presentation Linkbase Document |

----

|                                                             |
|-------------------------------------------------------------|
|                                                             |
| CINCINNATI FINANCIAL CORPORATION                            |
| Date: July 29, 2014                                         |
|                                                        |
| /S/ Eric N. Mathews                                         |
| Eric N. Mathews, CPCU, AIAF                                 |
| Vice President, Assistant Secretary and Assistant Treasurer |
| (Principal Accounting Officer)                              |