Schedule II



Cincinnati Financial Corporation (parent company only)
Condensed Balance Sheets
(Dollars in millions)	At December 31,
	2017			2016
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2017—$35; 2016—$46)	$	37		$	52
Equity securities, at fair value (cost: 2017—$1,159; 2016—$1,084)	2,275			1,833
Other invested assets	35			29
Total investments	2,347			1,914
Cash and cash equivalents	199			248
Equity in net assets of subsidiaries	6,542			5,790
Investment income receivable	8			8
Land, building and equipment, net, for company use (accumulated depreciation: 2017—$115; 2016—$111)	130			132
Income tax receivable	15			10
Other assets	52			35
Due from subsidiaries	107			106
Total assets	$	9,400		$	8,243
Liabilities
Dividends declared but unpaid	$	82		$	79
Deferred federal income tax	234			252
Long-term debt	787			787
Other liabilities	54			65
Total liabilities	1,157			1,183
Shareholders' Equity
Common stock	397			397
Paid-in capital	1,265			1,252
Retained earnings	5,180			5,037
Accumulated other comprehensive income	2,788			1,693
Treasury stock at cost	(1,387		)	(1,319		)
Total shareholders' equity	8,243			7,060
Total liabilities and shareholders' equity	$	9,400		$	8,243

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,
	2017			2016			2015
Revenues
Investment income, net of expenses	$	62		$	56		$	53
Realized investment gains and (losses), net	28			27			(19		)
Other revenue	15			15			15
Total revenues	105			98			49
Expenses
Interest expense	52			52			52
Other expenses	28			27			28
Total expenses	80			79			80
Income (Loss) Before Income Taxes and Earnings of Subsidiaries	25			19			(31		)
Benefit for income taxes	(161		)	(6		)	(23		)
Net Income (Loss) Before Earnings of Subsidiaries	186			25			(8		)
Increase in equity of subsidiaries	859			566			642
Net Income	$	1,045		$	591		$	634

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,
	2017			2016			2015
Net Income	$	1,045		$	591		$	634
Other Comprehensive Income, Before Tax
Unrealized gains and (losses) on investments available for sale	391			221			(111		)
Unrealized gains and (losses) on investments held by subsidiaries	672			434			(444		)
Reclassification adjustment for (gains) and losses included in net income	(28		)	(27		)	19
Reclassification adjustment for (gains) included in net income on subsidiaries	(120		)	(97		)	(89		)
Unrealized (losses) and gains on other	(2		)	(6		)	—
Unrealized gains and (losses) on other subsidiaries	1			(4		)	13
Unrealized gains and (losses) on investments available for sale, investments held by subsidiaries and other	914			521			(612		)
Amortization of pension actuarial gains (losses) and prior service cost	14			16			(6		)
Other comprehensive income (loss) before tax	928			537			(618		)
Income taxes on above of other comprehensive income (loss)	325			188			(218		)
Other comprehensive income (loss), net of tax	603			349			(400		)
Comprehensive Income	$	1,648		$	940		$	234

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,
	2017			2016			2015
Cash Flows From Operating Activities
Net income	$	1,045		$	591		$	634
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7			6			7
Realized investment (gains) and losses, net	(28		)	(27		)	19
Dividends from subsidiaries	465			475			447
Changes in:
Increase in equity of subsidiaries	(859		)	(566		)	(642		)
Investment income receivable	—			(2		)	—
Current federal income taxes	(5		)	(4		)	(7		)
Deferred income tax	(150		)	8			(10		)
Other assets	(20		)	(4		)	(3		)
Other liabilities	15			(1		)	13
Intercompany receivable for operations	13			20			16
Net cash provided by operating activities	483			496			474

Cash Flows From Investing Activities
Call or maturity of fixed maturities	14			5			8
Sale of equity securities	230			135			54
Purchase of fixed maturities	(2		)	—			—
Purchase of equity securities	(293		)	(175		)	(110		)
Investment in buildings and equipment	(3		)	(2		)	—
Change in other invested assets, net	—			6			1
Net cash used in investing activities	(54		)	(31		)	(47		)

Cash Flows From Financing Activities
Payment of cash dividends to shareholders	(400		)	(306		)	(366		)
Shares acquired - share repurchase authorization	(92		)	(39		)	(53		)
Proceeds from stock options exercised	13			21			24
Other	1			1			2
Net cash used in financing activities	(478		)	(323		)	(393		)
Net change in cash and cash equivalents	(49		)	142			34
Cash and cash equivalents at beginning of year	248			106			72
Cash and cash equivalents at end of year	$	199		$	248		$	106

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