Schedule II



Cincinnati Financial Corporation (parent company only)
Condensed Balance Sheets
(Dollars in millions)	At December 31,
	2015			2014
Assets
Investments
Fixed maturities, at fair value	$	58		$	69
Equity securities, at fair value	1,583			1,643
Other invested assets	36			37
Total investments	1,677			1,749
Cash and cash equivalents	106			72
Equity in net assets of subsidiaries	5,482			5,627
Investment income receivable	6			6
Land, building and equipment, net, for company use (accumulated depreciation: 2015—$118; 2014—$112)	139			144
Income tax receivable	6			—
Other assets	21			18
Due from subsidiaries	107			107
Total assets	$	7,544		$	7,723
Liabilities
Dividends declared but unpaid	$	75		$	72
Deferred federal income tax	173			216
Long-term debt	786			786
Other liabilities	83			76
Total liabilities	1,117			1,150
Shareholders' Equity
Common stock	397			397
Paid-in capital	1,232			1,214
Retained earnings	4,762			4,505
Accumulated other comprehensive income	1,344			1,744
Treasury stock at cost	(1,308		)	(1,287		)
Total shareholders' equity	6,427			6,573
Total liabilities and shareholders' equity	$	7,544		$	7,723

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8.

Schedule II (continued)



Cincinnati Financial Corporation (parent company only)
Condensed Statements of Income
(Dollars in millions)	Years ended December 31,
	2015			2014			2013
Revenues
Investment income, net of expenses	$	53		$	46		$	41
Realized investment (losses) and gains, net	(19		)	34			21
Other revenue	15			16			15
Total revenues	49			96			77
Expenses
Interest expense	52			52			53
Other expenses	28			28			29
Total expenses	80			80			82
Income (Loss) Before Income Taxes and Earnings of Subsidiaries	(31		)	16			(5		)
Benefit for income taxes	(23		)	(5		)	(11		)
Net Income (Loss) Before Earnings of Subsidiaries	(8		)	21			6
Increase in equity of subsidiaries	642			504			511
Net Income	$	634		$	525		$	517

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8.

Schedule II (continued)



Cincinnati Financial Corporation (parent company only)
Condensed Statements of Comprehensive Income
(Dollars in millions)	Years ended December 31,
	2015			2014			2013
Net Income	$	634		$	525		$	517
Other Comprehensive Income, Before Tax
Unrealized (losses) and gains on investments available-for-sale	(111		)	150			303
Unrealized (losses) and gains on investments held by subsidiaries	(444		)	367			240
Reclassification adjustment for gains and (losses) included in net income	19			(34		)	(21		)
Reclassification adjustment for (gains) included in net income on subsidiaries	(89		)	(99		)	(62		)
Unrealized gains and (losses) on other	—			7			(1		)
Unrealized gains and (losses) on other subsidiaries	13			(3		)	35
Unrealized (losses) and gains on investments available-for-sale, investments held by subsidiaries and other	(612		)	388			494
Amortization of pension actuarial losses and (gains) and prior service cost	(6		)	(18		)	83
Other comprehensive (loss) income before tax	(618		)	370			577
Income taxes on above of other comprehensive (loss) income	(218		)	130			202
Other comprehensive (loss) income, net of tax	(400		)	240			375
Comprehensive Income	$	234		$	765		$	892

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8.

Schedule II (continued)



Cincinnati Financial Corporation (parent company only)
Condensed Statements of Cash Flows
(Dollars in millions)	Years ended December 31,
	2015			2014			2013
Cash Flows From Operating Activities
Net income	$	634		$	525		$	517
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7			7			7
Realized investment losses and (gains), net	19			(34		)	(21		)
Dividends from subsidiaries	447			400			378
Changes in:
Increase in equity of subsidiaries	(642		)	(504		)	(511		)
Investment income receivable	—			(1		)	(2		)
Current federal income taxes	(7		)	3			12
Deferred income tax	(10		)	(6		)	(6		)
Other assets	(3		)	20			(30		)
Other liabilities	13			(14		)	39
Intercompany receivable for operations	16			22			(39		)
Net cash provided by operating activities	474			418			344

Cash Flows From Investing Activities
Call or maturity of fixed maturities	8			4			23
Sale of equity securities	54			112			75
Purchase of equity securities	(110		)	(225		)	(179		)
Investment in buildings and equipment, net	—			(2		)	(1		)
Change in other invested assets, net	1			4			4
Return of capital from subsidiaries	—			—			22
Net cash used by investing activities	(47		)	(107		)	(56		)

Cash Flows From Financing Activities
Payments on notes payable	—			(55		)	—
Payment of cash dividends to shareholders	(366		)	(278		)	(263		)
Shares acquired - share repurchase authorization	(53		)	(21		)	(52		)
Proceeds from stock options exercised	24			22			25
Other	2			2			3
Net cash used in financing activities	(393		)	(330		)	(287		)
Net change in cash and cash equivalents	34			(19		)	1
Cash and cash equivalents at beginning of year	72			91			90
Cash and cash equivalents at end of year	$	106		$	72		$	91

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8.