Segment Information

9 Months Ended

Sep. 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 September 30,						Nine months ended September 30,
	2011			2010			2011			2010
Revenues:
Commercial lines insurance
Commercial casualty	$	180		$	182		$	532		$	518
Commercial property		128			123			369			365
Commercial auto		100			96			292			287
Workers' compensation		78			77			235			230
Specialty packages		36			38			100			112
Surety and executive risk		26			22			76			71
Machinery and equipment		9			9			26			25
Commercial lines insurance premiums		557			547			1,630			1,608
Fee revenue		1			1			2			2
Total commercial lines insurance		558			548			1,632			1,610
Personal lines insurance
Personal auto		94			86			273			250
Homeowner		74			72			216			214
Other personal lines		25			24			74			71
Personal lines insurance premiums		193			182			563			535
Fee revenue		-			-			1			1
Total personal lines insurance		193			182			564			536
Excess and surplus lines insurance		19			14			51			36
Life insurance		44			41			125			121
Investment operations		128			283			470			528
Other		2			3			6			5
Total revenues	$	944		$	1,071		$	2,848		$	2,836
Income (loss) before income taxes:
Insurance underwriting results:
Commercial lines insurance	$	(44	)	$	(18	)	$	(193	)	$	(37	)
Personal lines insurance		(37	)		(7	)		(182	)		(52	)
Excess and surplus lines insurance		1			(3	)		1			(11	)
Life insurance		(3	)		(1	)		(1	)		1
Investment operations		107			262			409			468
Other		(13	)		(12	)		(44	)		(42	)
Total	$	11		$	221		$	(10	)	$	327
Identifiable assets:							September 30,			December 31,
								2011			2010
Property casualty insurance							$	2,378		$	2,008
Life insurance								1,151			1,214
Investment operations								11,589			11,543
Other								294			330
Total							$	15,412		$	15,095