Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

We operate primarily in two industries, property casualty insurance and life insurance. Our CODM 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.

•Income 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,
	2023		2022		2021
Revenues:
Commercial lines insurance
Commercial casualty	$	1,481	$	1,416	$	1,270
Commercial property	1,264		1,136		1,043
Commercial auto	862		842		794
Workers' compensation	277		284		268
Other commercial	380		346		299
Commercial lines insurance premiums	4,264		4,024		3,674
Fee revenues	4		4		4
Total commercial lines insurance	4,268		4,028		3,678
Personal lines insurance
Personal auto	721		626		609
Homeowner	1,044		829		726
Other personal	279		234		207
Personal lines insurance premiums	2,044		1,689		1,542
Fee revenues	4		4		4
Total personal lines insurance	2,048		1,693		1,546
Excess and surplus lines insurance	542		485		398
Fee revenues	3		2		2
Total excess and surplus lines insurance	545		487		400
Life insurance premiums	313		301		294
Fee revenues	10		4		5
Total life insurance	323		305		299
Investments
Investment income, net of expenses	894		781		714
Investment gains and losses, net	1,127		(1,467)		2,409
Total investment revenue	2,021		(686)		3,123
Other
Premiums	795		726		570
Other	13		10		10
Total other revenue	808		736		580
Total revenues	$	10,013	$	6,563	$	9,626
Income (loss) before income taxes:
Insurance underwriting results
Commercial lines insurance	$	168	$	38	$	598
Personal lines insurance	(4)		18		97
Excess and surplus lines insurance	54		48		44
Life insurance	41		27		12
Investments	1,900		(795)		3,018
Other	117		(30)		(71)
Total income (loss) before income taxes	$	2,276	$	(694)	$	3,698
	December 31,		December 31,
Identifiable assets:	2023		2022
Property casualty insurance	$	5,294	$	5,178
Life insurance	1,562		1,518
Investments	24,999		22,133
Other	914		903
Total	$	32,769	$	29,732