Segment Information

12 Months Ended

Dec. 31, 2021

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 portfolio assets, regardless of ownership, in the investments segment.

Segment information is summarized in the following table:

(Dollars in millions)	Years ended December 31,
	2021		2020		2019
Revenues:
Commercial lines insurance
Commercial casualty	$	1,270	$	1,165	$	1,102
Commercial property	1,043		1,010		958
Commercial auto	794		755		707
Workers' compensation	268		271		300
Other commercial	299		275		252
Commercial lines insurance premiums	3,674		3,476		3,319
Fee revenues	4		3		5
Total commercial lines insurance	3,678		3,479		3,324
Personal lines insurance
Personal auto	609		615		621
Homeowner	726		658		607
Other personal	207		190		176
Personal lines insurance premiums	1,542		1,463		1,404
Fee revenues	4		4		4
Total personal lines insurance	1,546		1,467		1,408
Excess and surplus lines insurance	398		325		278
Fee revenues	2		2		2
Total excess and surplus lines insurance	400		327		280
Life insurance premiums	298		289		270
Fee revenues	5		2		4
Total life insurance	303		291		274
Investments
Investment income, net of expenses	714		670		646
Investment gains and losses, net	2,409		865		1,650
Total investment revenue	3,123		1,535		2,296
Other
Premiums	570		427		333
Other	10		10		9
Total other revenue	580		437		342
Total revenues	$	9,630	$	7,536	$	7,924
Income (loss) before income taxes:
Insurance underwriting results
Commercial lines insurance	$	598	$	64	$	241
Personal lines insurance	97		47		8
Excess and surplus lines insurance	44		34		53
Life insurance	(16)		11		1
Investments	3,018		1,433		2,197
Other	(71)		(90)		(28)
Total income before income taxes	$	3,670	$	1,499	$	2,472
	December 31,		December 31,
Identifiable assets:	2021		2020
Property casualty insurance	$	4,421	$	3,838
Life insurance	1,590		1,661
Investments	24,481		21,332
Other	895		711
Total	$	31,387	$	27,542