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

|         |                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Third-quarter 2015 net income of $174 million, or $1.05 per share, compared with $183 million, or $1.11 per share, in the third quarter of 2014. |

|         |                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $32 million or 23 percent rise in operating income* to $172 million, or $1.04 per share, up from $140 million, or 85 cents per share, in the third quarter of last year. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $9 million decrease in third-quarter 2015 net income, reflecting the after-tax net effect of two primary items: $41 million reduction in net realized investment gains that offset $25 million of improvement in the contribution from property casualty underwriting, including an unfavorable effect from natural catastrophe losses that were $9 million more for third-quarter 2015 compared with the same quarter a year ago. |

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | $38.77 book value per share at September 30, 2015, down $1.37 or 3 percent since December 31, 2014. |

|         |                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| • | Zero percent value creation ratio for the first nine months of 2015, compared with 8.4 percent for the same period of 2014. |

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions except per share data)                   | Three months ended September 30, | Nine months ended September 30, |
|                                                          | 2015 |   | 2014 |   | % Change |   | 2015 |   | 2014 |   | % Change |
| Revenue Data                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|    Earned premiums                             |   | $ | 1,127 |  |   | $ | 1,071 |  |   | 5 |   | $ | 3,332 |  |   | $ | 3,157 |  |   | 6 |
|    Investment income, net of expenses          |   | 143 |  |   | 138 |  |   | 4 |   | 422 |  |   | 409 |  |   | 3 |
|    Total revenues                              |   | 1,278 |  |   | 1,280 |  |   | 0 |   | 3,879 |  |   | 3,683 |  |   | 5 |
| Income Statement Data                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income                                  |   | $ | 174 |  |   | $ | 183 |  |   | (5) |   | $ | 478 |  |   | $ | 358 |  |   | 34 |
|    Realized investment gains, net              |   | 2 |  |   | 43 |  |   | (95) |   | 71 |  |   | 66 |  |   | 8 |
|    Operating income*                           |   | $ | 172 |  |   | $ | 140 |  |   | 23 |   | $ | 407 |  |   | $ | 292 |  |   | 39 |
| Per Share Data (diluted)                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income                                  |   | $ | 1.05 |  |   | $ | 1.11 |  |   | (5) |   | $ | 2.89 |  |   | $ | 2.17 |  |   | 33 |
|    Realized investment gains, net              |   | 0.01 |  |   | 0.26 |  |   | (96) |   | 0.43 |  |   | 0.40 |  |   | 8 |
|    Operating income*                           |   | $ | 1.04 |  |   | $ | 0.85 |  |   | 22 |   | $ | 2.46 |  |   | $ | 1.77 |  |   | 39 |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|    Book value                                  |   |   |   |   |   |   |   | $ | 38.77 |  |   | $ | 39.01 |  |   | (1) |
|    Cash dividend declared                      |   | $ | 0.46 |  |   | $ | 0.44 |  |   | 5 |   | $ | 1.38 |  |   | $ | 1.32 |  |   | 5 |
|    Diluted weighted average shares outstanding |   | 165.5 |  |   | 165.0 |  |   | 0 |   | 165.5 |  |   | 165.0 |  |   | 0 |

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

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

----

|         |                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------|
| • | 87.8 percent third-quarter 2015 property casualty combined ratio, improved from 91.0 percent for third-quarter 2014. |

|         |                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------|
| • | 6 percent growth in third-quarter net written premiums, reflecting price increases and insured exposure growth. |

|         |                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $138 million third-quarter 2015 property casualty new business written premiums, up $13 million or 10 percent. Agencies appointed since the beginning of 2014 contributed $11 million or 8 percent of total new business written premiums. |

|         |                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------|
| • | 7 cents per share contribution from life insurance operating income, up 3 cents from third-quarter 2014. |

|         |                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 4 percent or $5 million increase in third-quarter 2015 pretax investment income, including 6 percent growth for stock portfolio dividends and 3 percent growth for bond interest income. |

|         |                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Three-month increase of less than 1 percent in fair value of total investments at September 30, 2015, including a 1 percent increase for the bond portfolio and a 4 percent decrease for the equity portfolio. |

|         |                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------|
| • | $1.801 billion parent company cash and marketable securities at September 30, 2015, up approximately 1 percent from year-end 2014. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                                         | Three months ended September 30, |   | Nine months ended September 30, |
|                                                                                          |   | 2015 |   | 2014 |   | % Change |   | 2015 |   | 2014 |   | % Change |
| Earned premiums                                                                               |   | $ | 1,076 |  |   | $ | 1,025 |  |   | 5 |  |   | $ | 3,176 |  |   | $ | 3,010 |  |   | 6 |  |
| Fee revenues                                                                                  |   | 2 |  |   | 2 |  |   | 0 |  |   | 6 |  |   | 5 |  |   | 20 |  |
|    Total revenues                                                              |   | 1,078 |  |   | 1,027 |  |   | 5 |  |   | 3,182 |  |   | 3,015 |  |   | 6 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 613 |  |   | 622 |  |   | (1 | ) |   | 1,956 |  |   | 2,005 |  |   | (2 | ) |
| Underwriting expenses                                                                         |   | 332 |  |   | 311 |  |   | 7 |  |   | 983 |  |   | 924 |  |   | 6 |  |
|    Underwriting profit                                                         |   | $ | 133 |  |   | $ | 94 |  |   | 41 |  |   | $ | 243 |  |   | $ | 86 |  |   | 183 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 56.9 |  % |   | 60.7 |  % |   | (3.8 | ) |   | 61.5 |  % |   | 66.6 |  % |   | (5.1 | ) |
|      Underwriting expenses                                           |   | 30.9 |  |   | 30.3 |  |   | 0.6 |  |   | 31.0 |  |   | 30.7 |  |   | 0.3 |  |
|            Combined ratio              |   | 87.8 |  % |   | 91.0 |  % |   | (3.2 | ) |   | 92.5 |  % |   | 97.3 |  % |   | (4.8 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 999 |  |   | $ | 958 |  |   | 4 |  |   | $ | 3,000 |  |   | $ | 2,888 |  |   | 4 |  |
| Agency new business written premiums                                                          |   | 138 |  |   | 125 |  |   | 10 |  |   | 392 |  |   | 381 |  |   | 3 |  |
| Other written premiums                                                                        |   | (39 | ) |   | (46 | ) |   | 15 |  |   | (86 | ) |   | (113 | ) |   | 24 |  |
|    Net written premiums                                                        |   | $ | 1,098 |  |   | $ | 1,037 |  |   | 6 |  |   | $ | 3,306 |  |   | $ | 3,156 |  |   | 5 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 58.7 |  % |   | 61.5 |  % |   | (2.8 | ) |   | 60.8 |  % |   | 62.8 |  % |   | (2.0 | ) |
|      Current accident year catastrophe losses                        |   | 2.6 |  |   | 1.6 |  |   | 1.0 |  |   | 5.1 |  |   | 7.7 |  |   | (2.6 | ) |
|      Prior accident years before catastrophe losses                  |   | (4.3 | ) |   | (2.0 | ) |   | (2.3 | ) |   | (4.0 | ) |   | (3.3 | ) |   | (0.7 | ) |
|      Prior accident years catastrophe losses                         |   | (0.1 | ) |   | (0.4 | ) |   | 0.3 |  |   | (0.4 | ) |   | (0.6 | ) |   | 0.2 |  |
|            Loss and loss expense ratio |   | 56.9 |  % |   | 60.7 |  % |   | (3.8 | ) |   | 61.5 |  % |   | 66.6 |  % |   | (5.1 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before catastrophe  losses                     |   | 89.6 |  % |   | 91.8 |  % |   | (2.2 | ) |   | 91.8 |  % |   | 93.5 |  % |   | (1.7 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $61 million or 6 percent growth of third-quarter 2015 property casualty net written premiums and nine-month growth of 5 percent. The increases were largely due to price increases and a higher level of insured exposures. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $13 million or 10 percent increase in third-quarter 2015 new business premiums written by agencies, largely due to contributions from new agency appointments. Nine-month new business premiums increased $11 million, including a $21 million increase from standard market property casualty production from agencies appointed since the beginning of 2014 and a $1 million increase for excess and surplus lines. |

|         |                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 1,515 agency relationships in 1,933 reporting locations marketing property casualty insurance products at September 30, 2015, compared with 1,466 agency relationships in 1,884 reporting locations at year-end 2014. During the first nine months of 2015, 85 new agency appointments were made. |

|         |                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 3.2 and 4.8 percentage-point third-quarter and nine-month 2015 combined ratio improvement, including a third-quarter increase of 1.3 points and a nine-month decrease of 2.4 points for losses from natural catastrophes. |

|         |                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 4.4 percentage-point third-quarter 2015 benefit from favorable prior accident year reserve development of $48 million, compared with 2.4 points or $25 million for third-quarter 2014. |

|         |                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 4.4 percentage-point nine-month 2015 benefit from favorable prior accident year reserve development, slightly higher than the nine-month 2014 benefit of 3.9 points. |

|         |                                                                                                                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 2.0 percentage-point improvement, to 60.8 percent, for the nine-month 2015 ratio of current accident year losses and loss expenses before catastrophes, reflecting overall higher pricing, lower noncatastrophe weather-related losses and a 0.7 point decrease in the ratio for current accident year losses of $1 million or more per claim. |

|         |                                                                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.6 and 0.3 percentage-point rise in the third-quarter and nine-month 2015 underwriting expense ratio, as strategic investments for profitable growth offset higher earned premiums and expense management efforts. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                                         | Three months ended September 30, |   | Nine months ended September 30, |
|                                                                                          |   | 2015 |   | 2014 |   | % Change |   | 2015 |   | 2014 |   | % Change |
| Earned premiums                                                                               |   | $ | 757 |  |   | $ | 720 |  |   | 5 |  |   | $ | 2,235 |  |   | $ | 2,126 |  |   | 5 |  |
| Fee revenues                                                                                  |   | 1 |  |   | 1 |  |   | 0 |  |   | 3 |  |   | 3 |  |   | 0 |  |
|    Total revenues                                                              |   | 758 |  |   | 721 |  |   | 5 |  |   | 2,238 |  |   | 2,129 |  |   | 5 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 398 |  |   | 428 |  |   | (7 | ) |   | 1,289 |  |   | 1,358 |  |   | (5 | ) |
| Underwriting expenses                                                                         |   | 239 |  |   | 226 |  |   | 6 |  |   | 705 |  |   | 674 |  |   | 5 |  |
|    Underwriting profit                                                         |   | $ | 121 |  |   | $ | 67 |  |   | 81 |  |   | $ | 244 |  |   | $ | 97 |  |   | 152 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 52.4 |  % |   | 59.4 |  % |   | (7.0 | ) |   | 57.6 |  % |   | 63.9 |  % |   | (6.3 | ) |
|      Underwriting expenses                                           |   | 31.6 |  |   | 31.3 |  |   | 0.3 |  |   | 31.6 |  |   | 31.7 |  |   | (0.1 | ) |
|            Combined ratio              |   | 84.0 |  % |   | 90.7 |  % |   | (6.7 | ) |   | 89.2 |  % |   | 95.6 |  % |   | (6.4 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 678 |  |   | $ | 651 |  |   | 4 |  |   | $ | 2,107 |  |   | $ | 2,033 |  |   | 4 |  |
| Agency new business written premiums                                                          |   | 96 |  |   | 89 |  |   | 8 |  |   | 268 |  |   | 274 |  |   | (2 | ) |
| Other written premiums                                                                        |   | (31 | ) |   | (36 | ) |   | 14 |  |   | (62 | ) |   | (84 | ) |   | 26 |  |
|    Net written premiums                                                        |   | $ | 743 |  |   | $ | 704 |  |   | 6 |  |   | $ | 2,313 |  |   | $ | 2,223 |  |   | 4 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 56.6 |  % |   | 61.3 |  % |   | (4.7 | ) |   | 58.8 |  % |   | 61.4 |  % |   | (2.6 | ) |
|      Current accident year catastrophe losses                        |   | 1.5 |  |   | 1.4 |  |   | 0.1 |  |   | 4.2 |  |   | 6.5 |  |   | (2.3 | ) |
|      Prior accident years before catastrophe losses                  |   | (5.6 | ) |   | (2.9 | ) |   | (2.7 | ) |   | (5.0 | ) |   | (3.5 | ) |   | (1.5 | ) |
|      Prior accident years catastrophe losses                         |   | (0.1 | ) |   | (0.4 | ) |   | 0.3 |  |   | (0.4 | ) |   | (0.5 | ) |   | 0.1 |  |
|            Loss and loss expense ratio |   | 52.4 |  % |   | 59.4 |  % |   | (7.0 | ) |   | 57.6 |  % |   | 63.9 |  % |   | (6.3 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before catastrophe  losses                     |   | 88.2 |  % |   | 92.6 |  % |   | (4.4 | ) |   | 90.4 |  % |   | 93.1 |  % |   | (2.7 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $39 million or 6 percent increase in third-quarter 2015 commercial lines net written premiums, including higher renewal written premiums and growth in new business written premiums. Four percent increase in nine-month net written premiums. |

|         |                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $27 million or 4 percent rise in third-quarter renewal written premiums with commercial lines renewal pricing increases averaging in the low-single-digit percent range. |

|         |                                                                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $7 million or 8 percent increase in third-quarter 2015 new business written by agencies, with growth in each major commercial line of business. For the nine-month period, the 2 percent decrease largely reflected underwriting and pricing discipline in a competitive market environment. |

|         |                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 6.7 and 6.4 percentage-point third-quarter and nine-month 2015 combined ratio improvement, including a third-quarter increase of 0.4 points and a nine-month decrease of 2.2 points for losses from natural catastrophes. |

|         |                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 5.7 percentage-point third-quarter 2015 benefit from favorable prior accident year reserve development of $43 million, compared with 3.3 points or $24 million for third-quarter 2014. |

|         |                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 5.4 percentage-point nine-month 2015 benefit from favorable prior accident year reserve development exceeded the nine-month 2014 benefit of 4.0 points. |

|         |                                                                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 2.6 percentage-point improvement, to 58.8 percent, for the nine-month 2015 ratio of current accident year losses and loss expenses before catastrophes, largely due to lower noncatastrophe weather-related losses and a 2.0 point decrease in the ratio for current accident year losses of $1 million or more per claim. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                                         | Three months ended September 30, |   | Nine months ended September 30, |
|                                                                                          |   | 2015 |   | 2014 |   | % Change |   | 2015 |   | 2014 |   | % Change |
| Earned premiums                                                                               |   | $ | 277 |  |   | $ | 263 |  |   | 5 |  |   | $ | 817 |  |   | $ | 775 |  |   | 5 |  |
| Fee revenues                                                                                  |   | 1 |  |   | 1 |  |   | 0 |  |   | 2 |  |   | 2 |  |   | 0 |  |
|    Total revenues                                                              |   | 278 |  |   | 264 |  |   | 5 |  |   | 819 |  |   | 777 |  |   | 5 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 198 |  |   | 177 |  |   | 12 |  |   | 605 |  |   | 592 |  |   | 2 |  |
| Underwriting expenses                                                                         |   | 82 |  |   | 73 |  |   | 12 |  |   | 244 |  |   | 218 |  |   | 12 |  |
|    Underwriting (loss) profit                                                  |   | $ | (2 | ) |   | $ | 14 |  |   | nm |  |   | $ | (30 | ) |   | $ | (33 | ) |   | 9 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 71.5 |  % |   | 67.4 |  % |   | 4.1 |  |   | 74.0 |  % |   | 76.3 |  % |   | (2.3 | ) |
|      Underwriting expenses                                           |   | 29.4 |  |   | 27.6 |  |   | 1.8 |  |   | 29.8 |  |   | 28.2 |  |   | 1.6 |  |
|            Combined ratio              |   | 100.9 |  % |   | 95.0 |  % |   | 5.9 |  |   | 103.8 |  % |   | 104.5 |  % |   | (0.7 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 288 |  |   | $ | 278 |  |   | 4 |  |   | $ | 796 |  |   | $ | 772 |  |   | 3 |  |
| Agency new business written premiums                                                          |   | 30 |  |   | 23 |  |   | 30 |  |   | 84 |  |   | 68 |  |   | 24 |  |
| Other written premiums                                                                        |   | (6 | ) |   | (7 | ) |   | 14 |  |   | (18 | ) |   | (21 | ) |   | 14 |  |
|    Net written premiums                                                        |   | $ | 312 |  |   | $ | 294 |  |   | 6 |  |   | $ | 862 |  |   | $ | 819 |  |   | 5 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 64.9 |  % |   | 62.7 |  % |   | 2.2 |  |   | 65.8 |  % |   | 65.8 |  % |   | 0.0 |  |
|      Current accident year catastrophe losses                        |   | 5.7 |  |   | 2.6 |  |   | 3.1 |  |   | 8.0 |  |   | 12.2 |  |   | (4.2 | ) |
|      Prior accident years before catastrophe losses                  |   | 1.0 |  |   | 2.7 |  |   | (1.7 | ) |   | 0.5 |  |   | (0.5 | ) |   | 1.0 |  |
|      Prior accident years catastrophe losses                         |   | (0.1 | ) |   | (0.6 | ) |   | 0.5 |  |   | (0.3 | ) |   | (1.2 | ) |   | 0.9 |  |
|            Loss and loss expense ratio |   | 71.5 |  % |   | 67.4 |  % |   | 4.1 |  |   | 74.0 |  % |   | 76.3 |  % |   | (2.3 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before catastrophe  losses                     |   | 94.3 |  % |   | 90.3 |  % |   | 4.0 |  |   | 95.6 |  % |   | 94.0 |  % |   | 1.6 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $18 million or 6 percent increase in third-quarter 2015 personal lines net written premiums, including growth in new business and higher renewal written premiums that benefited from rate increases. Five percent increase in nine-month net written premiums. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $7 million or 30 percent growth in third-quarter new business written by agencies, raising the nine-month growth rate to 24 percent. The strong growth in part reflected more larger-sized policy submissions due to broadened underwriting appetite and pricing changes, plus increased visibility of underwriters and marketing efforts directed toward our agencies. Approximately $1 million of third-quarter growth was from agencies’ high net worth clients. |

|         |                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 5.9 percentage-point rise in the third-quarter 2015 combined ratio, primarily due to a increase of 3.6 points for losses from natural catastrophes. |

|         |                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.7 percentage-point nine-month 2015 combined ratio improvement, including a decrease of 3.3 points for losses from natural catastrophes. |

|         |                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.9 percentage-point third-quarter 2015 unfavorable prior accident year reserve development of $2 million, largely from personal umbrella claims, compared with 2.1 points from $5 million for the third-quarter 2014. |

|         |                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.2 percentage-point nine-month 2015 unfavorable prior accident year reserve development of $1 million, primarily due to unfavorable development for our personal auto line of business. |

|         |                                                                                                                                                                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 65.8 percent nine-month 2015 ratio of current accident year losses and loss expenses before catastrophes matched the same period of 2014, reflecting lower noncatastrophe weather-related losses offset by a 2.7 point increase in the ratio for current accident year losses of $1 million or more per claim. |

|         |                                                                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 1.8 and 1.6 percentage-point third-quarter and nine-month 2015 increases in the underwriting expense ratio, largely due to strategic investments, such as staff additions to support expansion in high net worth markets, and changes in estimates related to allocations of deferred acquisition costs by segment. |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                                         | Three months ended September 30, |   | Nine months ended September 30, |
|                                                                                          |   | 2015 |   | 2014 |   | % Change |   | 2015 |   | 2014 |   | % Change |
| Earned premiums                                                                               |   | $ | 42 |  |   | $ | 42 |  |   | 0 |  |   | $ | 124 |  |   | $ | 109 |  |   | 14 |  |
| Fee revenues                                                                                  |   | — |  |   | — |  |   | nm |  |   | 1 |  |   | — |  |   | nm |  |
|    Total revenues                                                              |   | 42 |  |   | 42 |  |   | 0 |  |   | 125 |  |   | 109 |  |   | 15 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss and loss expenses                                                                        |   | 17 |  |   | 17 |  |   | 0 |  |   | 62 |  |   | 55 |  |   | 13 |  |
| Underwriting expenses                                                                         |   | 11 |  |   | 12 |  |   | (8 | ) |   | 34 |  |   | 32 |  |   | 6 |  |
|    Underwriting profit                                                         |   | $ | 14 |  |   | $ | 13 |  |   | 8 |  |   | $ | 29 |  |   | $ | 22 |  |   | 32 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Loss and loss expenses                                          |   | 41.9 |  % |   | 41.8 |  % |   | 0.1 |  |   | 50.1 |  % |   | 51.0 |  % |   | (0.9 | ) |
|      Underwriting expenses                                           |   | 28.0 |  |   | 28.4 |  |   | (0.4 | ) |   | 27.8 |  |   | 28.9 |  |   | (1.1 | ) |
|            Combined ratio              |   | 69.9 |  % |   | 70.2 |  % |   | (0.3 | ) |   | 77.9 |  % |   | 79.9 |  % |   | (2.0 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | % Change |   |   |   |   |   | % Change |
| Agency renewal written premiums                                                               |   | $ | 33 |  |   | $ | 29 |  |   | 14 |  |   | $ | 97 |  |   | $ | 83 |  |   | 17 |  |
| Agency new business written premiums                                                          |   | 12 |  |   | 13 |  |   | (8 | ) |   | 40 |  |   | 39 |  |   | 3 |  |
| Other written premiums                                                                        |   | (2 | ) |   | (3 | ) |   | 33 |  |   | (6 | ) |   | (8 | ) |   | 25 |  |
|    Net written premiums                                                        |   | $ | 43 |  |   | $ | 39 |  |   | 10 |  |   | $ | 131 |  |   | $ | 114 |  |   | 15 |  |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios as a percent of earned premiums:                                                       |   |   |   |   |   | Pt. Change |   |   |   |   |   | Pt. Change |
|      Current accident year before catastrophe losses                 |   | 56.9 |  % |   | 57.8 |  % |   | (0.9 | ) |   | 65.9 |  % |   | 70.2 |  % |   | (4.3 | ) |
|      Current accident year catastrophe losses                        |   | 0.3 |  |   | (0.7 | ) |   | 1.0 |  |   | 0.7 |  |   | 1.4 |  |   | (0.7 | ) |
|      Prior accident years before catastrophe losses                  |   | (15.4 | ) |   | (15.4 | ) |   | 0.0 |  |   | (16.4 | ) |   | (20.8 | ) |   | 4.4 |  |
|      Prior accident years catastrophe losses                         |   | 0.1 |  |   | 0.1 |  |   | 0.0 |  |   | (0.1 | ) |   | 0.2 |  |   | (0.3 | ) |
|            Loss and loss expense ratio |   | 41.9 |  % |   | 41.8 |  % |   | 0.1 |  |   | 50.1 |  % |   | 51.0 |  % |   | (0.9 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Current accident year combined ratio before catastrophe  losses                     |   | 84.9 |  % |   | 86.2 |  % |   | (1.3 | ) |   | 93.7 |  % |   | 99.1 |  % |   | (5.4 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $4 million or 10 percent increase in third-quarter 2015 excess and surplus lines net written premiums, reflecting higher renewal written premiums that benefited from rate increases averaging near the low end of the mid-single-digit range. Fifteen percent increase in nine-month net written premiums. |

|         |                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $1 million or 8 percent decrease in third-quarter new business written by agencies, primarily due to writing fewer new large-premium accounts. |

|         |                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 0.3 and 2.0 percentage-point third-quarter and nine-month 2015 combined ratio improvement driven by lower ratios for current accident year loss experience. |

|         |                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 15.3 percentage-point third-quarter 2015 benefit from favorable prior accident year reserve development of $7 million, compared with 15.3 points from $6 million for third-quarter 2014. |

|         |                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 16.5 percentage-point nine-month 2015 benefit from favorable prior accident year reserve development was less than the nine-month 2014 benefit of 20.6 points. |

|         |                                                                                                                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 4.3 percentage-point improvement, to 65.9 percent, for the nine-month 2015 ratio of current accident year losses and loss expenses before catastrophes, including lower noncatastrophe weather-related losses and a 0.6 point increase in the ratio for current accident year losses of $1 million or more per claim. |

----

|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                      | Three months ended September 30, |   | Nine months ended September 30, |
|                                                                       | 2015 |   | 2014 |   | % Change |   | 2015 |   | 2014 |   | % Change |
| Term life insurance                                                        |   | $ | 34 |  |   | $ | 34 |  |   | 0 |  |   | $ | 103 |  |   | $ | 99 |  |   | 4 |  |
| Universal life insurance                                                   |   | 9 |  |   | 5 |  |   | 80 |  |   | 28 |  |   | 25 |  |   | 12 |  |
| Other life insurance, annuity, and disability income  products   |   | 8 |  |   | 7 |  |   | 14 |  |   | 25 |  |   | 23 |  |   | 9 |  |
|     Earned premiums                                    |   | 51 |  |   | 46 |  |   | 11 |  |   | 156 |  |   | 147 |  |   | 6 |  |
| Investment income, net of expenses                                         |   | 38 |  |   | 36 |  |   | 6 |  |   | 112 |  |   | 108 |  |   | 4 |  |
| Other income                                                               |   | 2 |  |   | 1 |  |   | 100 |  |   | 4 |  |   | 4 |  |   | 0 |  |
| Total revenues, excluding realized investment gains and losses             |   | 91 |  |   | 83 |  |   | 10 |  |   | 272 |  |   | 259 |  |   | 5 |  |
| Contract holders’ benefits incurred                                  |   | 57 |  |   | 64 |  |   | (11 | ) |   | 175 |  |   | 176 |  |   | (1 | ) |
| Underwriting expenses incurred                                             |   | 16 |  |   | 8 |  |   | 100 |  |   | 50 |  |   | 42 |  |   | 19 |  |
|     Total benefits and expenses                        |   | 73 |  |   | 72 |  |   | 1 |  |   | 225 |  |   | 218 |  |   | 3 |  |
| Net income before income tax and realized investment  gains, net |   | 18 |  |   | 11 |  |   | 64 |  |   | 47 |  |   | 41 |  |   | 15 |  |
| Income tax                                                                 |   | 7 |  |   | 4 |  |   | 75 |  |   | 17 |  |   | 15 |  |   | 13 |  |
| Net income before realized investment gains, net                           |   | $ | 11 |  |   | $ | 7 |  |   | 57 |  |   | $ | 30 |  |   | $ | 26 |  |   | 15 |  |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $5 million or 11 percent increase in third-quarter 2015 earned premiums, including no change for term life insurance, our largest life insurance product line. For the first nine months of 2015, term life insurance earned premiums increased 4 percent. The unlocking of interest rates and other actuarial assumptions for our universal life insurance contracts during the third quarter of both 2015 and 2014 slowed the amortization of unearned front-end loads, reducing universal life premiums, with a corresponding decrease to operating expenses as more expenses were deferred to future periods. The unlocking impact to earned premiums and operating expenses was much more significant during the third quarter of 2014. For both third quarter periods, the impact to net income was minimal. |

|         |                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $4 million increase in nine-month 2015 profit, primarily due to favorable mortality experience. Mortality experience was unfavorable for the first nine months of 2014. |

|         |                                                                                                                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $7 million or 1 percent nine-month 2015 decrease to $897 million in GAAP shareholders’ equity for The Cincinnati Life Insurance Company, largely reflecting a decrease in fair value of the fixed-maturity portfolio due to an increase in interest rate spreads. |

----

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                                   |   | Three months ended September 30, |   | Nine months ended September 30, |
|                                                                    | 2015 |   | 2014 |   | % Change |   | 2015 |   | 2014 |   | % Change |
| Investment income, net of expenses                                      |   | $ | 143 |  |   | $ | 138 |  |   | 4 |  |   | $ | 422 |  |   | $ | 409 |  |   | 3 |  |
| Investment interest credited to contract holders’                 |   | (21 | ) |   | (21 | ) |   | 0 |  |   | (64 | ) |   | (62 | ) |   | (3 | ) |
| Realized investment gains, net                                          |   | 3 |  |   | 65 |  |   | (95 | ) |   | 110 |  |   | 101 |  |   | 9 |  |
|       Investments profit                  |   | $ | 125 |  |   | $ | 182 |  |   | (31 | ) |   | $ | 468 |  |   | $ | 448 |  |   | 4 |  |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment income:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest                                              |   | $ | 108 |  |   | $ | 105 |  |   | 3 |  |   | $ | 319 |  |   | $ | 312 |  |   | 2 |  |
|    Dividends                                             |   | 37 |  |   | 35 |  |   | 6 |  |   | 108 |  |   | 101 |  |   | 7 |  |
|    Other                                                 |   | 1 |  |   | — |  |   | nm |  |   | 2 |  |   | 2 |  |   | 0 |  |
|    Less investment expenses                              |   | 3 |  |   | 2 |  |   | 0 |  |   | 7 |  |   | 6 |  |   | 17 |  |
|       Investment income, pretax           |   | 143 |  |   | 138 |  |   | 4 |  |   | 422 |  |   | 409 |  |   | 3 |  |
|       Less income taxes                   |   | 34 |  |   | 32 |  |   | 6 |  |   | 100 |  |   | 97 |  |   | 3 |  |
|       Total investment income, after-tax  |   | $ | 109 |  |   | $ | 106 |  |   | 3 |  |   | $ | 322 |  |   | $ | 312 |  |   | 3 |  |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment returns:                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|       Effective tax rate                  |   | 23.7 | % |   | 23.3 | % |   |  |  |   | 23.7 | % |   | 23.7 | % |   |  |  |
|  Average invested assets plus cash and cash  equivalents |   | $ | 14,498 |  |   | $ | 13,964 |  |   |   |   | $ | 14,399 |  |   | $ | 13,792 |  |   |   |
|       Average yield pretax                |   | 3.95 | % |   | 3.95 | % |   |  |  |   | 3.91 | % |   | 3.95 | % |   |  |  |
|       Average yield after-tax             |   | 3.01 |  |   | 3.04 |  |   |  |  |   | 2.98 |  |   | 3.02 |  |   |  |  |
| Fixed-maturity returns:                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Effective tax rate                                                      |   | 27.1 | % |   | 26.6 | % |   |  |  |   | 27.1 | % |   | 27.0 | % |   |  |  |
| Average amortized cost                                                  |   | $ | 9,347 |  |   | $ | 8,822 |  |   |   |   | $ | 9,133 |  |   | $ | 8,781 |  |   |   |
| Average yield pretax                                                    |   | 4.62 | % |   | 4.76 | % |   |  |  |   | 4.66 | % |   | 4.74 | % |   |  |  |
| Average yield after-tax                                                 |   | 3.37 |  |   | 3.49 |  |   |  |  |   | 3.40 |  |   | 3.46 |  |   |  |  |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |

|         |                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $5 million or 4 percent rise in third-quarter 2015 pretax investment income, including 6 percent growth in equity portfolio dividends and 3 percent growth in interest income. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $365 million or 15 percent third-quarter 2015 decrease in pretax net unrealized investment portfolio gains, including a $350 million decrease for the equity portfolio. The total decrease included the offsetting effect of $10 million of pretax net realized gains from investment portfolio security sales or called bonds during the third quarter of 2015, including $6 million from the equity portfolio. |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |
| (Dollars in millions except share data)       |   | At September 30, |   | At December 31, |
|                                          | 2015 |   | 2014 |
| Balance sheet data:                           |   |   |   |   |
|    Total investments           |   | $ | 14,426 |  |   | $ | 14,386 |  |
|    Total assets                |   | 18,751 |  |   | 18,753 |  |
|    Short-term debt             |   | 35 |  |   | 49 |  |
|    Long-term debt              |   | 791 |  |   | 791 |  |
|    Shareholders’ equity  |   | 6,350 |  |   | 6,573 |  |
|    Book value per share        |   | 38.77 |  |   | 40.14 |  |
|    Debt-to-total-capital ratio |   | 11.5 | % |   | 11.3 | % |

|         |                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $14.845 billion in consolidated cash and total investments at September 30, 2015, down 1 percent from $14.977 billion at year-end 2014. |

|         |                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $9.756 billion bond portfolio at September 30, 2015, with an average rating of A2/A. Fair value increased $81 million or 1 percent during the third quarter of 2015, including $100 million in net purchases of fixed-maturity securities. |

|         |                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $4.526 billion equity portfolio was 31.4 percent of total investments, including $1.556 billion in pretax net unrealized gains at September 30, 2015. Third-quarter 2015 decrease in fair value of $208 million or 4 percent. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $4.324 billion of statutory surplus for the property casualty insurance group at September 30, 2015, down $148 million from $4.472 billion at year-end 2014, after declaring $300 million in dividends to the parent company. The ratio of net written premiums to property casualty statutory surplus for the 12 months ended September 30, 2015, was 1.0-to-1, up from 0.9-to-1 at year-end 2014. |

|         |                                                                                                                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $1.37 nine-month 2015 decrease in book value per share, including an addition of $2.48 from net income before realized gains that was offset by deductions of $1.38 from dividends declared to shareholders, $2.45 from investment portfolio realized gains and changes in unrealized gains and $0.02 from other items. |

|         |                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Value creation ratio of zero percent for the first nine months of 2015, reflecting 6.1 percent from net income before net realized investment gains, which includes underwriting and investment income, and negative 6.1 percent from investment portfolio realized gains and changes in unrealized gains. |

----

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

----

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

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

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

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

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

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

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

----

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)                                              |   |   |   | September 30, | December 31, |
|                                                               |   |   |   |   | 2015 |   | 2014 |
| Assets                                                             |   |   |   |   |   |   |   |
|    Investments                                      |   |   |   |   | $ | 14,426 |  |   | $ | 14,386 |  |
|    Cash and cash equivalents                        |   |   |   |   | 419 |  |   | 591 |  |
|    Premiums receivable                              |   |   |   |   | 1,494 |  |   | 1,405 |  |
|    Reinsurance recoverable                          |   |   |   |   | 552 |  |   | 545 |  |
| Deferred policy acquisition costs                                  |   |   |   |   | 609 |  |   | 578 |  |
|    Other assets                                     |   |   |   |   | 1,251 |  |   | 1,248 |  |
| Total assets                                                       |   |   |   |   | $ | 18,751 |  |   | $ | 18,753 |  |
|                                                               |   |   |   |   |   |   |   |
| Liabilities                                                        |   |   |   |   |   |   |   |
|    Insurance reserves                               |   |   |   |   | $ | 7,264 |  |   | $ | 6,982 |  |
|    Unearned premiums                                |   |   |   |   | 2,215 |  |   | 2,082 |  |
|    Deferred income tax                              |   |   |   |   | 596 |  |   | 840 |  |
|    Long-term debt and capital lease obligations     |   |   |   |   | 826 |  |   | 827 |  |
|    Other liabilities                                |   |   |   |   | 1,500 |  |   | 1,449 |  |
| Total liabilities                                                  |   |   |   |   | 12,401 |  |   | 12,180 |  |
|                                                               |   |   |   |   |   |   |   |
| Shareholders’ Equity                                         |   |   |   |   |   |   |   |
|    Common stock and paid-in capital                 |   |   |   |   | 1,620 |  |   | 1,611 |  |
|    Retained earnings                                |   |   |   |   | 4,756 |  |   | 4,505 |  |
|    Accumulated other comprehensive income           |   |   |   |   | 1,280 |  |   | 1,744 |  |
|    Treasury stock                                   |   |   |   |   | (1,306 | ) |   | (1,287 | ) |
| Total shareholders' equity                                         |   |   |   |   | 6,350 |  |   | 6,573 |  |
| Total liabilities and shareholders' equity                         |   |   |   |   | $ | 18,751 |  |   | $ | 18,753 |  |
|                                                               |   |   |   |   |   |   |   |
| (Dollars in millions except per share data)                        | Three months ended September 30, |   | Nine months ended September 30, |
|                                                               | 2015 |   | 2014 |   | 2015 |   | 2014 |
| Revenues                                                           |   |   |   |   |   |   |   |
|    Earned premiums                                  | $ | 1,127 |  |   | $ | 1,071 |  |   | $ | 3,332 |  |   | $ | 3,157 |  |
|    Investment income, net of expenses               | 143 |  |   | 138 |  |   | 422 |  |   | 409 |  |
|    Realized investment gains, net                   | 3 |  |   | 65 |  |   | 110 |  |   | 101 |  |
|    Other revenues                                   | 5 |  |   | 6 |  |   | 15 |  |   | 16 |  |
|       Total revenues                 | 1,278 |  |   | 1,280 |  |   | 3,879 |  |   | 3,683 |  |
|                                                               |   |   |   |   |   |   |   |
| Benefits and Expenses                                              |   |   |   |   |   |   |   |
|    Insurance losses and contract holders' benefits  | 670 |  |   | 686 |  |   | 2,131 |  |   | 2,181 |  |
|    Underwriting, acquisition and insurance expenses | 348 |  |   | 319 |  |   | 1,033 |  |   | 967 |  |
|    Interest expense                                 | 14 |  |   | 13 |  |   | 40 |  |   | 40 |  |
|    Other operating expenses                         | 3 |  |   | 3 |  |   | 10 |  |   | 10 |  |
|       Total benefits and expenses    | 1,035 |  |   | 1,021 |  |   | 3,214 |  |   | 3,198 |  |
|                                                               |   |   |   |   |   |   |   |
| Income Before Income Taxes                                         | 243 |  |   | 259 |  |   | 665 |  |   | 485 |  |
|                                                               |   |   |   |   |   |   |   |
| Provision for Income Taxes                                         | 69 |  |   | 76 |  |   | 187 |  |   | 127 |  |
|                                                               |   |   |   |   |   |   |   |
| Net Income                                                         | $ | 174 |  |   | $ | 183 |  |   | $ | 478 |  |   | $ | 358 |  |
|                                                               |   |   |   |   |   |   |   |
| Per Common Share:                                                  |   |   |   |   |   |   |   |
|    Net income—basic                           | $ | 1.06 |  |   | $ | 1.12 |  |   | $ | 2.91 |  |   | $ | 2.19 |  |
|    Net income—diluted                         | 1.05 |  |   | 1.11 |  |   | 2.89 |  |   | 2.17 |  |

----

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

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

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

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

----

|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars are per share)                                                          |   | Three months ended September 30, |   | Nine months ended September 30, |
|                                                                             | 2015 |   | 2014 |   | 2015 |   | 2014 |
| Value creation ratio:                                                            |   |   |   |   |   |   |   |   |
|    End of period book value                                       |   | $ | 38.77 |  |   | $ | 39.01 |  |   | $ | 38.77 |  |   | $ | 39.01 |  |
|    Less beginning of period book value                            |   | 39.60 |  |   | 38.77 |  |   | 40.14 |  |   | 37.21 |  |
|    Change in book value                                           |   | (0.83 | ) |   | 0.24 |  |   | (1.37 | ) |   | 1.80 |  |
|    Dividend declared to shareholders                              |   | 0.46 |  |   | 0.44 |  |   | 1.38 |  |   | 1.32 |  |
|    Total value creation                                           |   | $ | (0.37 | ) |   | $ | 0.68 |  |   | $ | 0.01 |  |   | $ | 3.12 |  |
|                                                                             |   |   |   |   |   |   |   |   |
| Value creation ratio from change in book value*                                  |   | (2.1 | )% |   | 0.6 | % |   | (3.4 | )% |   | 4.8 | % |
| Value creation ratio from dividends declared to  shareholders**        | 1.2 |  |   | 1.2 |  |   | 3.4 |  |   | 3.6 |  |
| Value creation ratio                                                             |   | (0.9 | )% |   | 1.8 | % |   | 0.0 |  % |   | 8.4 | % |
|                                                                             |   |   |   |   |   |   |   |   |
| *    Change in book value divided by the beginning of period book value          |   |   |
| **   Dividend declared to shareholders divided by beginning of period book value |   |   |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Net Income Reconciliation                              |
|                                                         |
| (Dollars in millions except per share data)                  |   | Three months ended September 30, |   | Nine months ended September 30, |
|                                                         |   | 2015 |   | 2014 |   | 2015 |   | 2014 |
|    Net income                                 |   | $ | 174 |  |   | $ | 183 |  |   | $ | 478 |  |   | $ | 358 |  |
|    Realized investment gains, net             |   | 2 |  |   | 43 |  |   | 71 |  |   | 66 |  |
|    Operating income                           |   | 172 |  |   | 140 |  |   | 407 |  |   | 292 |  |
|    Less catastrophe losses                    |   | (17 | ) |   | (8 | ) |   | (96 | ) |   | (139 | ) |
|    Operating income before catastrophe losses |   | 189 |  |   | 148 |  |   | $ | 503 |  |   | $ | 431 |  |
|                                                         |   |   |   |   |   |   |   |   |
| Diluted per share data:                                      |   |   |   |   |   |   |   |   |
|    Net income                                 |   | $ | 1.05 |  |   | $ | 1.11 |  |   | $ | 2.89 |  |   | $ | 2.17 |  |
|    Realized investment gains, net             |   | 0.01 |  |   | 0.26 |  |   | 0.43 |  |   | 0.40 |  |
|    Operating income                           |   | 1.04 |  |   | 0.85 |  |   | 2.46 |  |   | 1.77 |  |
|    Less catastrophe losses                    |   | (0.10 | ) |   | (0.05 | ) |   | (0.58 | ) |   | (0.84 | ) |
|    Operating income before catastrophe losses |   | 1.14 |  |   | 0.90 |  |   | $ | 3.04 |  |   | $ | 2.61 |  |
|                                                         |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Property Casualty Insurance Reconciliation                                                                                                              |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| (Dollars in millions)                                                                                                                                   | Three months ended September 30, 2015 |
|                                                                                                                                                    | Consolidated | Commercial | Personal | E&S |
| Premiums:                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|    Written premiums                                                                                                                      |   | $ | 1,098 |  |   |   | $ | 743 |  |   |   | $ | 312 |  |   |   | $ | 43 |  |   |
|    Unearned premiums change                                                                                                              |   | (22 | ) |   |   | 14 |  |   |   | (35 | ) |   |   | (1 | ) |   |
|    Earned premiums                                                                                                                       |   | $ | 1,076 |  |   |   | $ | 757 |  |   |   | $ | 277 |  |   |   | $ | 42 |  |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Statutory ratios:                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|    Combined ratio                                                                                                                        |   | 87.5 |  % |   |   | 84.6 |  % |   |   | 98.5 | % |   |   | 71.3 |  % |   |
|    Contribution from catastrophe losses                                                                                                  |   | 2.5 |  |   |   | 1.4 |  |   |   | 5.6 |  |   |   | 0.4 |  |   |
|    Combined ratio excluding catastrophe losses                                                                                           |   | 85.0 |  % |   |   | 83.2 |  % |   |   | 92.9 | % |   |   | 70.9 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commission expense ratio                                                                                                              |   | 18.8 |  % |   |   | 19.1 |  % |   |   | 16.8 | % |   |   | 26.8 |  % |   |
|    Other underwriting expense ratio                                                                                                      |   | 11.8 |  |   |   | 13.1 |  |   |   | 10.2 |  |   |   | 2.6 |  |   |
|    Total expense ratio                                                                                                                   |   | 30.6 |  % |   |   | 32.2 |  % |   |   | 27.0 | % |   |   | 29.4 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| GAAP ratios:                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Combined ratio                                                                                                                        |   | 87.8 |  % |   |   | 84.0 |  % |   |   | 100.9 | % |   |   | 69.9 |  % |   |
|    Contribution from catastrophe losses                                                                                                  |   | 2.5 |  |   |   | 1.4 |  |   |   | 5.6 |  |   |   | 0.4 |  |   |
|    Prior accident years before catastrophe losses                                                                                        |   | (4.3 | ) |   |   | (5.6 | ) |   |   | 1.0 |  |   |   | (15.4 | ) |   |
| Current accident year combined ratio before catastrophe losses                                                                                          |   | 89.6 |  % |   |   | 88.2 |  % |   |   | 94.3 | % |   |   | 84.9 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| (Dollars in millions)                                                                                                                                   | Nine months ended September 30, 2015 |
|                                                                                                                                                    | Consolidated | Commercial | Personal | E&S |
| Premiums:                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|    Written premiums                                                                                                                      |   | $ | 3,306 |  |   |   | $ | 2,313 |  |   |   | $ | 862 |  |   |   | $ | 131 |  |   |
|    Unearned premiums change                                                                                                              |   | (130 | ) |   |   | (78 | ) |   |   | (45 | ) |   |   | (7 | ) |   |
|    Earned premiums                                                                                                                       |   | $ | 3,176 |  |   |   | $ | 2,235 |  |   |   | $ | 817 |  |   |   | $ | 124 |  |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Statutory ratios:                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|    Combined ratio                                                                                                                        |   | 91.3 |  % |   |   | 88.2 |  % |   |   | 101.7 | % |   |   | 79.6 |  % |   |
|    Contribution from catastrophe losses                                                                                                  |   | 4.7 |  |   |   | 3.8 |  |   |   | 7.7 |  |   |   | 0.6 |  |   |
|    Combined ratio excluding catastrophe losses                                                                                           |   | 86.6 |  % |   |   | 84.4 |  % |   |   | 94.0 | % |   |   | 79.0 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commission expense ratio                                                                                                              |   | 18.2 |  % |   |   | 17.9 |  % |   |   | 17.6 | % |   |   | 26.7 |  % |   |
|    Other underwriting expense ratio                                                                                                      |   | 11.6 |  |   |   | 12.7 |  |   |   | 10.1 |  |   |   | 2.8 |  |   |
|    Total expense ratio                                                                                                                   |   | 29.8 |  % |   |   | 30.6 |  % |   |   | 27.7 | % |   |   | 29.5 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| GAAP ratios:                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Combined ratio                                                                                                                        |   | 92.5 |  % |   |   | 89.2 |  % |   |   | 103.8 | % |   |   | 77.9 |  % |   |
|    Contribution from catastrophe losses                                                                                                  |   | 4.7 |  |   |   | 3.8 |  |   |   | 7.7 |  |   |   | 0.6 |  |   |
|    Prior accident years before catastrophe losses                                                                                        |   | (4.0 | ) |   |   | (5.0 | ) |   |   | 0.5 |  |   |   | (16.4 | ) |   |
| Current accident year combined ratio before catastrophe losses                                                                                          |   | 91.8 |  % |   |   | 90.4 |  % |   |   | 95.6 | % |   |   | 93.7 |  % |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.  Ratios are calculated based on dollar amounts in thousands. |