XML 42 R17.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Shareholders' Equity And Dividend Restrictions
 12 Months Ended
Dec. 31, 2019
Shareholders Equity And Dividend Restrictions [Abstract]  
Shareholders' Equity And Dividend Restrictions Shareholders’ Equity and Dividend Restrictions
Declared cash dividends per share were $2.24, $2.12 and $2.50 for the years ended December 31, 2019, 2018 and 2017, respectively.

Our lead insurance subsidiary, The Cincinnati Insurance Company, paid dividends to the parent company of $625 million in 2019, $500 million in 2018 and $465 million in 2017. State regulatory requirements restrict the dividends insurance subsidiaries can pay. Generally, the most our lead insurance subsidiary can pay without prior regulatory approval is the greater of 10% of statutory capital and surplus or 100% of statutory net income for the prior calendar year. Dividends exceeding these limitations may be paid only with approval of the insurance department of the domiciliary state. During 2020, the total that our lead insurance subsidiary may pay in dividends is approximately $562 million.

Dividend payments from Cincinnati Global to the parent company are subject to regulation by UK law. Cincinnati Global paid no dividends to the parent company in 2019.
 
Accumulated Other Comprehensive Income
The table below shows beginning and end of year accumulated other comprehensive income (AOCI) for investments, pension obligations, life deferred acquisition costs, life policy reserves and other. The changes from the beginning of year to the end of year are the result of changes to other comprehensive income or loss (OCI).

 (Dollars in millions)
 
2019
 
 
2018
 
 
2017
 
 
Before
tax
 
Income
tax
 
Net
 
 
Before
tax
 
Income
tax
 
Net
 
 
Before
tax
 
Income
tax
 
Net
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, January 1
 
$
46

 
$
9

 
$
37

 
 
$
3,540

 
$
733

 
$
2,807

 
 
$
2,625

 
$
908

 
$
1,717

Cumulative effect of change in accounting for equity securities as of January 1, 2018
 
—

 
—

 
—

 
 
(3,155
)
 
(652
)
 
(2,503
)
 
 
—

 
—

 
—

Adjusted AOCI, beginning of period
 
46

 
9

 
37

 
 
385

 
81

 
304

 
 
2,625

 
908

 
1,717

OCI before investment gains and losses, net, recognized in net income
 
545

 
115

 
430

 
 
(334
)
 
(71
)
 
(263
)
 
 
1,054

 
366

 
688

Investment gains and losses, net, recognized in net income
 
(1
)
 
(1
)
 
—

 
 
(5
)
 
(1
)
 
(4
)
 
 
(139
)
 
(49
)
 
(90
)
OCI
 
544

 
114

 
430

 
 
(339
)
 
(72
)
 
(267
)
 
 
915

 
317

 
598

Adjustment to reclassify certain tax effects from AOCI
 
—

 
—

 
—

 
 
—

 
—

 
—

 
 
—

 
(492
)
 
492

AOCI, December 31
 
$
590

 
$
123

 
$
467

 
 
$
46

 
$
9

 
$
37

 
 
$
3,540

 
$
733

 
$
2,807

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension obligations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, January 1
 
$
(16
)
 
$
(2
)
 
$
(14
)
 
 
$
(12
)
 
$
(1
)
 
$
(11
)
 
 
$
(26
)
 
$
(8
)
 
$
(18
)
OCI excluding amortization recognized in net income
 
6

 
2

 
4

 
 
(5
)
 
(1
)
 
(4
)
 
 
12

 
6

 
6

Amortization recognized in net income
 
1

 
—

 
1

 
 
1

 
—

 
1

 
 
2

 
1

 
1

OCI
 
7

 
2

 
5

 
 
(4
)
 
(1
)
 
(3
)
 
 
14

 
7

 
7

AOCI, December 31
 
$
(9
)
 
$
—

 
$
(9
)
 
 
$
(16
)
 
$
(2
)
 
$
(14
)
 
 
$
(12
)
 
$
(1
)
 
$
(11
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Life deferred acquisition costs, life policy reserves and other:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, January 1
 
$
(1
)
 
$
—

 
$
(1
)
 
 
$
(10
)
 
$
(2
)
 
$
(8
)
 
 
$
(9
)
 
$
(3
)
 
$
(6
)
OCI before investment gains and losses, net, recognized in net income
 
(15
)
 
(3
)
 
(12
)
 
 
(3
)
 
(1
)
 
(2
)
 
 
8

 
5

 
3

Investment gains and losses, net, recognized in net income
 
3

 
—

 
3

 
 
12

 
3

 
9

 
 
(9
)
 
(4
)
 
(5
)
OCI
 
(12
)
 
(3
)
 
(9
)
 
 
9

 
2

 
7

 
 
(1
)
 
1

 
(2
)
AOCI, December 31
 
$
(13
)
 
$
(3
)
 
$
(10
)
 
 
$
(1
)
 
$
—

 
$
(1
)
 
 
$
(10
)
 
$
(2
)
 
$
(8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of AOCI:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AOCI, January 1
 
$
29

 
$
7

 
$
22

 
 
$
3,518

 
$
730

 
$
2,788

 
 
$
2,590

 
$
897

 
$
1,693

Cumulative effect of change in accounting for equity securities as of January 1, 2018
 
—

 
—

 
—

 
 
(3,155
)
 
(652
)
 
(2,503
)
 
 
—

 
—

 
—

Adjusted AOCI, beginning of period
 
29

 
7

 
22

 
 
363

 
78

 
285

 
 
2,590

 
897

 
1,693

Investments OCI
 
544

 
114

 
430

 
 
(339
)
 
(72
)
 
(267
)
 
 
915

 
317

 
598

Pension obligations OCI
 
7

 
2

 
5

 
 
(4
)
 
(1
)
 
(3
)
 
 
14

 
7

 
7

Life deferred acquisition costs, life policy reserves and other OCI
 
(12
)
 
(3
)
 
(9
)
 
 
9

 
2

 
7

 
 
(1
)
 
1

 
(2
)
Total OCI
 
539

 
113

 
426

 
 
(334
)
 
(71
)
 
(263
)
 
 
928

 
325

 
603

Adjustment to reclassify certain tax effects from AOCI
 
—

 
—

 
—

 
 
—

 
—

 
—

 
 
—

 
(492
)
 
492

AOCI, December 31
 
$
568

 
$
120

 
$
448

 
 
$
29

 
$
7

 
$
22

 
 
$
3,518

 
$
730

 
$
2,788

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Investments gains and losses, net, and life deferred acquisition costs, life policy reserves and other investment gains and losses, net, are recorded in the investment gains and losses, net, line item in the consolidated statements of income. Amortization on pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses line items in the consolidated statements of income.