Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

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. We also report as Other the underwriting results of Cincinnati Re and Cincinnati Global.

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.

We do not separately report the identifiable assets of property casualty insurance for the commercial, personal and excess and surplus lines segments or for Cincinnati Re because we do not use that measure to analyze performance. 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,
	2020		2019		2018
Revenues:
Commercial lines insurance
Commercial casualty	$	1,165	$	1,102	$	1,075
Commercial property	1,010		958		920
Commercial auto	755		707		664
Workers' compensation	271		300		324
Other commercial	275		252		235
Commercial lines insurance premiums	3,476		3,319		3,218
Fee revenues	3		5		5
Total commercial lines insurance	3,479		3,324		3,223
Personal lines insurance
Personal auto	615		621		614
Homeowner	658		607		563
Other personal	190		176		159
Personal lines insurance premiums	1,463		1,404		1,336
Fee revenues	4		4		5
Total personal lines insurance	1,467		1,408		1,341
Excess and surplus lines insurance	325		278		234
Fee revenues	2		2		1
Total excess and surplus lines insurance	327		280		235
Life insurance premiums	289		270		250
Fee revenues	2		4		4
Total life insurance	291		274		254
Investments
Investment income, net of expenses	670		646		619
Investment gains and losses, net	865		1,650		(402)
Total investment revenue	1,535		2,296		217
Other
Premiums	427		333		132
Other	10		9		5
Total other revenue	437		342		137
Total revenues	$	7,536	$	7,924	$	5,407
Income (loss) before income taxes:
Insurance underwriting results
Commercial lines insurance	$	64	$	241	$	151
Personal lines insurance	47		8		(20)
Excess and surplus lines insurance	34		53		63
Life insurance	11		1		8
Investments	1,433		2,197		121
Other	(90)		(28)		(72)
Total income before income taxes	$	1,499	$	2,472	$	251
	December 31,		December 31,
Identifiable assets:	2020		2019
Property casualty insurance	$	3,838	$	3,437
Life insurance	1,661		1,516
Investments	21,332		19,583
Other	711		872
Total	$	27,542	$	25,408