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 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 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,
	2017			2016			2015
Revenues:
Commercial lines insurance
Commercial casualty	$	1,072		$	1,050		$	1,010
Commercial property	903			867			815
Commercial auto	634			594			561
Workers' compensation	335			354			367
Other commercial	221			224			243
Commercial lines insurance premiums	3,165			3,089			2,996
Fee revenues	5			5			4
Total commercial lines insurance	3,170			3,094			3,000

Personal lines insurance
Personal auto	582			543			506
Homeowner	518			486			463
Other personal	141			132			128
Personal lines insurance premiums	1,241			1,161			1,097
Fee revenues	5			4			3
Total personal lines insurance	1,246			1,165			1,100

Excess and surplus lines insurance	209			183			168
Fee revenues	1			1			1
Total excess and surplus lines insurance	210			184			169

Life insurance premiums	232			228			209
Fee revenues	5			5			5
Total life insurance	237			233			214

Investments
Investment income, net of expenses	609			595			572
Realized investment gains, net	148			124			70
Total investment revenue	757			719			642

Other
Cincinnati Re insurance premiums	107			49			10
Other	5			5			7
Total other revenue	112			54			17
Total revenues	$	5,732		$	5,449		$	5,142

Income (loss) before income taxes:
Insurance underwriting results
Commercial lines insurance	$	119		$	184		$	345
Personal lines insurance	(32		)	(12		)	(12		)
Excess and surplus lines insurance	61			62			51
Life insurance	(1		)	1			(2		)
Investments	664			629			556
Other	(81		)	(52		)	(57		)
Total income before income taxes	$	730		$	812		$	881

	December 31,			December 31,
Identifiable assets:	2017			2016
Property casualty insurance	$	2,863		$	2,967
Life insurance	1,409			1,366
Investments	17,112			15,569
Other	459			484
Total	$	21,843		$	20,386