Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information

NOTE 12 – Segment Information

We operate primarily in two industries, property casualty insurance and life insurance. We regularly review our reporting segments to make decisions about allocating resources and assessing performance:

· Commercial lines property casualty insurance

· Personal lines property casualty insurance

· Excess and Surplus lines property and casualty insurance

· Life insurance

· Investments

As discussed in our 2010 Annual Report on Form 10-K, Item 8, Note 18, Segment Information, we revised our reportable segments during the fourth quarter of 2010 to establish a separate reportable segment for excess and surplus lines. This new segment includes results of The Cincinnati Specialty Underwriters Insurance Company and CSU Producer Resources. Historically, the excess and surplus lines results were reflected in Other. Prior period data included in this quarterly report has been adjusted to represent this new segment.

We report as Other the non-investment operations of the parent company and its non-insurer subsidiary, CFC Investment Company. See our 2010 Annual Report on Form 10-K, Item 8, Note 18, Segment Information, Page 115 for a description of revenue, income or loss before income taxes and identifiable assets for each of the five segments.

Segment information is summarized in the following table:

(In millions)	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Revenues:
Commercial lines insurance
Commercial casualty	$	180		$	172		$	352		$	336
Commercial property		115			121			241			242
Commercial auto		96			96			192			191
Workers' compensation		81			79			157			153
Specialty packages		27			37			64			74
Surety and executive risk		25			25			50			49
Machinery and equipment		9			8			17			16
Commercial lines insurance premiums		533			538			1,073			1,061
Fee revenue		-			-			1			1
Total commercial lines insurance		533			538			1,074			1,062
Personal lines insurance
Personal auto		90			83			179			164
Homeowner		66			72			142			142
Other personal lines		24			24			49			47
Personal lines insurance premiums		180			179			370			353
Fee revenue		1			1			1			1
Total personal lines insurance		181			180			371			354
Excess and surplus lines insurance		17			11			32			22
Life insurance		43			41			81			80
Investment operations		199			107			342			245
Other		2			1			4			2
Total revenues	$	975		$	878		$	1,904		$	1,765
Income (loss) before income taxes:
Insurance underwriting results:
Commercial lines insurance	$	(128	)	$	(10	)	$	(149	)	$	(19	)
Personal lines insurance		(142	)		(40	)		(145	)		(45	)
Excess and surplus lines insurance		5			(4	)		-			(8	)
Life insurance		5			2			2			2
Investment operations		179			87			302			206
Other		(16	)		(14	)		(31	)		(30	)
Total	$	(97	)	$	21		$	(21	)	$	106
Identifiable assets:							June 30,			December 31,
								2011			2010
Property casualty insurance							$	2,336		$	2,008
Life insurance								1,252			1,214
Investment operations								11,814			11,543
Other								300			330
Total							$	15,702		$	15,095