Schedule II



Cincinnati Financial Corporation (parent company only)
Condensed Balance Sheets
(Dollars in millions)	At December 31,
	2016			2015
Assets
Investments
Fixed maturities, at fair value	$	52		$	58
Equity securities, at fair value	1,833			1,583
Other invested assets	29			36
Total investments	1,914			1,677
Cash and cash equivalents	248			106
Equity in net assets of subsidiaries	5,790			5,482
Investment income receivable	8			6
Land, building and equipment, net, for company use (accumulated depreciation: 2016—$111; 2015—$118)	132			139
Income tax receivable	10			6
Other assets	35			21
Due from subsidiaries	106			107
Total assets	$	8,243		$	7,544
Liabilities
Dividends declared but unpaid	$	79		$	75
Deferred federal income tax	252			173
Long-term debt	787			786
Other liabilities	65			83
Total liabilities	1,183			1,117
Shareholders' Equity
Common stock	397			397
Paid-in capital	1,252			1,232
Retained earnings	5,037			4,762
Accumulated other comprehensive income	1,693			1,344
Treasury stock at cost	(1,319		)	(1,308		)
Total shareholders' equity	7,060			6,427
Total liabilities and shareholders' equity	$	8,243		$	7,544

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,
	2016			2015			2014
Revenues
Investment income, net of expenses	$	56		$	53		$	46
Realized investment (losses) and gains, net	27			(19		)	34
Other revenue	15			15			16
Total revenues	98			49			96
Expenses
Interest expense	52			52			52
Other expenses	27			28			28
Total expenses	79			80			80
Income (Loss) Before Income Taxes and Earnings of Subsidiaries	19			(31		)	16
Benefit for income taxes	(6		)	(23		)	(5		)
Net Income (Loss) Before Earnings of Subsidiaries	25			(8		)	21
Increase in equity of subsidiaries	566			642			504
Net Income	$	591		$	634		$	525

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,
	2016			2015			2014
Net Income	$	591		$	634		$	525
Other Comprehensive Income, Before Tax
Unrealized gains and (losses) on investments available for sale	221			(111		)	150
Unrealized gains and (losses) on investments held by subsidiaries	434			(444		)	367
Reclassification adjustment for (losses) and gains included in net income	(27		)	19			(34		)
Reclassification adjustment for (gains) included in net income on subsidiaries	(97		)	(89		)	(99		)
Unrealized (losses) and gains on other	(6		)	—			7
Unrealized (losses) and gains on other subsidiaries	(4		)	13			(3		)
Unrealized gains and (losses) on investments available for sale, investments held by subsidiaries and other	521			(612		)	388
Amortization of pension actuarial gains (losses) and prior service cost	16			(6		)	(18		)
Other comprehensive income (loss) before tax	537			(618		)	370
Income taxes on above of other comprehensive income (loss)	188			(218		)	130
Other comprehensive income (loss), net of tax	349			(400		)	240
Comprehensive Income	$	940		$	234		$	765

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,
	2016			2015			2014
Cash Flows From Operating Activities
Net income	$	591		$	634		$	525
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6			7			7
Realized investment losses and (gains), net	(27		)	19			(34		)
Dividends from subsidiaries	475			447			400
Changes in:
Increase in equity of subsidiaries	(566		)	(642		)	(504		)
Investment income receivable	(2		)	—			(1		)
Current federal income taxes	(4		)	(7		)	3
Deferred income tax	8			(10		)	(6		)
Other assets	(4		)	(3		)	20
Other liabilities	(1		)	13			(14		)
Intercompany receivable for operations	20			16			22
Net cash provided by operating activities	496			474			418

Cash Flows From Investing Activities
Call or maturity of fixed maturities	5			8			4
Sale of equity securities	135			54			112
Purchase of equity securities	(175		)	(110		)	(225		)
Investment in buildings and equipment, net	(2		)	—			(2		)
Change in other invested assets, net	6			1			4
Net cash used by investing activities	(31		)	(47		)	(107		)

Cash Flows From Financing Activities
Payments on notes payable	—			—			(55		)
Payment of cash dividends to shareholders	(306		)	(366		)	(278		)
Shares acquired - share repurchase authorization	(39		)	(53		)	(21		)
Proceeds from stock options exercised	21			24			22
Other	1			2			2
Net cash used in financing activities	(323		)	(393		)	(330		)
Net change in cash and cash equivalents	142			34			(19		)
Cash and cash equivalents at beginning of year	106			72			91
Cash and cash equivalents at end of year	$	248		$	106		$	72

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