Schedule II



Cincinnati Financial Corporation (parent company only)
Condensed Balance Sheets
(Dollars in millions)	At December 31,
	2018			2017
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2018—$35; 2017—$35)	$	35		$	37
Equity securities, at fair value (cost: 2018—$1,282; 2017—$1,159)	2,234			2,275
Other invested assets	36			35
Total investments	2,305			2,347
Cash and cash equivalents	209			199
Equity in net assets of subsidiaries	6,152			6,542
Investment income receivable	6			8
Land, building and equipment, net, for company use (accumulated depreciation: 2018—$121; 2017—$115)	137			130
Income tax receivable	1			15
Other assets	48			52
Due from subsidiaries	106			107
Total assets	$	8,964		$	9,400
Liabilities
Dividends declared but unpaid	$	86		$	82
Deferred federal income tax	198			234
Long-term debt	788			787
Other liabilities	59			54
Total liabilities	1,131			1,157
Shareholders' Equity
Common stock	397			397
Paid-in capital	1,281			1,265
Retained earnings	7,625			5,180
Accumulated other comprehensive income	22			2,788
Treasury stock at cost	(1,492		)	(1,387		)
Total shareholders' equity	7,833			8,243
Total liabilities and shareholders' equity	$	8,964		$	9,400

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,
	2018			2017			2016
Revenues
Investment income, net of expenses	$	65		$	62		$	56
Investment gains and losses, net	(108		)	28			27
Other revenue	15			15			15
Total revenues	(28		)	105			98
Expenses
Interest expense	52			52			52
Other expenses	31			28			27
Total expenses	83			80			79
Income (Loss) Before Income Taxes and Earnings of Subsidiaries	(111		)	25			19
Benefit for income taxes	(31		)	(161		)	(6		)
Net Income (Loss) Before Earnings of Subsidiaries	(80		)	186			25
Increase in equity of subsidiaries	367			859			566
Net Income	$	287		$	1,045		$	591

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,
	2018			2017			2016
Net Income	$	287		$	1,045		$	591
Other Comprehensive Income (Loss), Before Tax
Unrealized gains and (losses) on investments available for sale	(110		)	391			221
Unrealized gains and (losses) on investments held by subsidiaries	(631		)	672			434
Reclassification adjustment for (gains) and losses included in net income	108			(28		)	(27		)
Reclassification adjustment for (gains) included in net income on subsidiaries	294			(120		)	(97		)
Unrealized (losses) and gains on other	—			(2		)	(6		)
Unrealized gains and (losses) on other subsidiaries	9			1			(4		)
Unrealized gains and (losses) on investments available for sale, investments held by subsidiaries and other	(330		)	914			521
Amortization of pension actuarial gains (losses) and prior service cost	(4		)	14			16
Other comprehensive income (loss) before tax	(334		)	928			537
Income taxes on above of other comprehensive income (loss)	(71		)	325			188
Other comprehensive income (loss), net of tax	(263		)	603			349
Comprehensive Income	$	24		$	1,648		$	940

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,
	2018			2017			2016
Cash Flows From Operating Activities
Net income	$	287		$	1,045		$	591
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7			7			6
Investment gains and losses, net	114			(28		)	(27		)
Dividends from subsidiaries	500			465			475
Changes in:
Increase in equity of subsidiaries	(367		)	(859		)	(566		)
Investment income receivable	2			—			(2		)
Current federal income taxes	14			(5		)	(4		)
Deferred income tax	(35		)	(150		)	8
Other assets	(17		)	(20		)	(4		)
Other liabilities	3			15			(1		)
Intercompany receivable for operations	19			13			20
Net cash provided by operating activities	527			483			496

Cash Flows From Investing Activities
Sale of fixed maturities	1			—			—
Call or maturity of fixed maturities	19			14			5
Sale of equity securities	131			230			135
Purchase of fixed maturities	(17		)	(2		)	—
Purchase of equity securities	(177		)	(293		)	(175		)
Investment in buildings and equipment	(12		)	(3		)	(2		)
Change in other invested assets, net	(11		)	—			6
Net cash used in investing activities	(66		)	(54		)	(31		)

Cash Flows From Financing Activities
Payment of cash dividends to shareholders	(336		)	(400		)	(306		)
Shares acquired - share repurchase authorization	(125		)	(92		)	(39		)
Proceeds from stock options exercised	9			13			21
Other	1			1			1
Net cash used in financing activities	(451		)	(478		)	(323		)
Net change in cash and cash equivalents	10			(49		)	142
Cash and cash equivalents at beginning of year	199			248			106
Cash and cash equivalents at end of year	$	209		$	199		$	248

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