Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

We operate primarily in two industries, property casualty insurance and life insurance. Our chief operating decision maker regularly reviews our reporting segments to make decisions about allocating resources and assessing performance. Our reporting segments are:

• Commercial lines insurance

• Personal lines insurance

• Excess and surplus lines insurance

• Life insurance

• Investments

We report as Other the noninvestment operations of the parent company and its noninsurer subsidiary, CFC Investment Company and Cincinnati Re, our reinsurance assumed operations.

Revenues come primarily from unaffiliated customers:

• All four insurance segments record revenues from insurance premiums earned.

• Fee revenues for the commercial, personal and excess and surplus insurance segments primarily represent installment fees. Fee revenues for the life insurance segment represent separate account investment management fees.

• Our investments’ revenues consist of pretax net investment income and realized investment gains and losses.

• Other revenues are primarily finance income and, beginning in 2015, earned premiums of Cincinnati Re.

Income or loss before income taxes for each segment is reported based on the nature of that business area’s operations:

• Income before income taxes for the insurance segments is defined as underwriting profit or loss.

◦ For commercial lines, personal lines and excess and surplus lines insurance segments, we calculate underwriting profit or loss as premiums earned and fee revenue minus loss and loss expenses and underwriting expenses incurred.

◦ For the life insurance segment, we calculate underwriting profit or loss as premiums earned and fee revenue, minus contract holders’ benefits and expenses incurred, plus investment interest credited to contract holders.

• Income before income taxes for the investments segment is net investment income plus realized investment gains and losses for investments of the entire company, minus investment interest credited to contract holders of the life insurance segment.

• Loss before income taxes for the Other category is primarily due to interest expense from debt of the parent company, operating expenses of our headquarters and, beginning in 2015, premiums earned minus loss and loss expenses and underwriting expenses of Cincinnati Re.

Identifiable assets are used by each segment in its operations. We do not separately report the identifiable assets for the commercial, personal or excess and surplus lines segments because we do not use that measure to analyze the segments. We include all investment assets, regardless of ownership, in the investments segment.

Segment information is summarized in the following table:

(Dollars in millions)	Years ended December 31,
	2016			2015			2014
Revenues:
Commercial lines insurance
Commercial casualty	$	1,050		$	1,010		$	938
Commercial property	867			815			728
Commercial auto	594			561			528
Workers' compensation	354			367			370
Other commercial	224			243			292
Commercial lines insurance premiums	3,089			2,996			2,856
Fee revenues	5			4			4
Total commercial lines insurance	3,094			3,000			2,860
Personal lines insurance
Personal auto	543			506			476
Homeowner	486			463			443
Other personal	132			128			122
Personal lines insurance premiums	1,161			1,097			1,041
Fee revenues	4			3			2
Total personal lines insurance	1,165			1,100			1,043
Excess and surplus lines insurance	183			168			148
Fee revenues	1			1			—
Total excess and surplus lines insurance	184			169			148
Life insurance premiums	228			209			198
Fee revenues	5			5			6
Total life insurance	233			214			204
Investments
Investment income, net of expenses	595			572			549
Realized investment gains, net	124			70			133
Total investment revenue	719			642			682
Other
Cincinnati Re insurance premiums	49			10			—
Other	5			7			8
Total other revenue	54			17			8
Total revenues	$	5,449		$	5,142		$	4,945
Income (loss) before income taxes:
Insurance underwriting results
Commercial lines insurance	$	184		$	345		$	146
Personal lines insurance	(12		)	(12		)	10
Excess and surplus lines insurance	62			51			30
Life insurance	1			(2		)	(5		)
Investments	629			556			599
Other	(52		)	(57		)	(59		)
Total income before income taxes	$	812		$	881		$	721
	December 31,			December 31,
Identifiable assets:	2016			2015
Property casualty insurance	$	2,967		$	2,717
Life insurance	1,366			1,325
Investments	15,569			14,485
Other	484			361
Total	$	20,386		$	18,888