Segment Information

12 Months Ended

Dec. 31, 2022

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,
	2022		2021		2020
Revenues:
Commercial lines insurance
Commercial casualty	$	1,416	$	1,270	$	1,165
Commercial property	1,136		1,043		1,010
Commercial auto	842		794		755
Workers' compensation	284		268		271
Other commercial	346		299		275
Commercial lines insurance premiums	4,024		3,674		3,476
Fee revenues	4		4		3
Total commercial lines insurance	4,028		3,678		3,479
Personal lines insurance
Personal auto	626		609		615
Homeowner	829		726		658
Other personal	234		207		190
Personal lines insurance premiums	1,689		1,542		1,463
Fee revenues	4		4		4
Total personal lines insurance	1,693		1,546		1,467
Excess and surplus lines insurance	485		398		325
Fee revenues	2		2		2
Total excess and surplus lines insurance	487		400		327
Life insurance premiums	295		298		289
Fee revenues	4		5		2
Total life insurance	299		303		291
Investments
Investment income, net of expenses	781		714		670
Investment gains and losses, net	(1,467)		2,409		865
Total investment revenue	(686)		3,123		1,535
Other
Premiums	726		570		427
Other	10		10		10
Total other revenue	736		580		437
Total revenues	$	6,557	$	9,630	$	7,536
Income (loss) before income taxes:
Insurance underwriting results
Commercial lines insurance	$	38	$	598	$	64
Personal lines insurance	18		97		47
Excess and surplus lines insurance	48		44		34
Life insurance	28		(16)		11
Investments	(795)		3,018		1,433
Other	(30)		(71)		(90)
Total income (loss) before income taxes	$	(693)	$	3,670	$	1,499
	December 31,		December 31,
Identifiable assets:	2022		2021
Property casualty insurance	$	5,178	$	4,421
Life insurance	1,522		1,590
Investments	22,133		24,481
Other	903		895
Total	$	29,736	$	31,387