Segment Information

12 Months Ended

Dec. 31, 2019

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. We also report as Other the underwriting results of Cincinnati Re, our reinsurance assumed operation, and Cincinnati Global, our London-based global specialty underwriter, which was acquired on February 28, 2019.

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 investment gains and losses.


•	Other revenues are primarily finance income and earned premiums of Cincinnati Re and Cincinnati Global.

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 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 and Cincinnati Global.

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,
	2019			2018			2017
Revenues:
Commercial lines insurance
Commercial casualty	$	1,102		$	1,075		$	1,072
Commercial property	958			920			903
Commercial auto	707			664			634
Workers' compensation	300			324			335
Other commercial	252			235			221
Commercial lines insurance premiums	3,319			3,218			3,165
Fee revenues	5			5			5
Total commercial lines insurance	3,324			3,223			3,170

Personal lines insurance
Personal auto	621			614			582
Homeowner	607			563			518
Other personal	176			159			141
Personal lines insurance premiums	1,404			1,336			1,241
Fee revenues	4			5			5
Total personal lines insurance	1,408			1,341			1,246

Excess and surplus lines insurance	278			234			209
Fee revenues	2			1			1
Total excess and surplus lines insurance	280			235			210

Life insurance premiums	270			250			232
Fee revenues	4			4			5
Total life insurance	274			254			237

Investments
Investment income, net of expenses	646			619			609
Investment gains and losses, net	1,650			(402		)	148
Total investment revenue	2,296			217			757

Other
Premiums	333			132			107
Other	9			5			5
Total other revenue	342			137			112
Total revenues	$	7,924		$	5,407		$	5,732

Income (loss) before income taxes:
Insurance underwriting results
Commercial lines insurance	$	241		$	151		$	119
Personal lines insurance	8			(20		)	(32		)
Excess and surplus lines insurance	53			63			61
Life insurance	1			8			(1		)
Investments	2,197			121			664
Other	(28		)	(72		)	(81		)
Total income before income taxes	$	2,472		$	251		$	730

	December 31,			December 31,
Identifiable assets:	2019			2018
Property casualty insurance	$	3,437		$	3,285
Life insurance	1,516			1,424
Investments	19,583			16,741
Other	872			485
Total	$	25,408		$	21,935