Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 000-04604 | ||
Entity Registrant Name | Cincinnati Financial Corporation | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 31-0746871 | ||
Entity Address, Address Line One | 6200 S. Gilmore Road | ||
Entity Address, City or Town | Fairfield | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45014-5141 | ||
City Area Code | 513 | ||
Local Phone Number | 870-2000 | ||
Title of 12(b) Security | Common stock, $2.00 par | ||
Trading Symbol | CINF | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9,621,748,017 | ||
Entity Common Stock, Shares Outstanding | 161,201,922 | ||
Entity Central Index Key | 0000020286 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement for Cincinnati Financial Corporation’s Annual Meeting of Shareholders to be held on May 8, 2021, are incorporated by reference into Part III of this Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | $ 12,338 | $ 11,698 |
Equity securities, at fair value (cost: 2020—$3,927; 2019—$3,581) | 8,856 | 7,752 |
Other invested assets | 348 | 296 |
Total investments | 21,542 | 19,746 |
Cash and cash equivalents | 900 | 767 |
Investment income receivable | 136 | 133 |
Finance receivable | 95 | 77 |
Premiums receivable | 1,879 | 1,777 |
Reinsurance recoverable | 517 | 610 |
Prepaid reinsurance premiums | 65 | 54 |
Deferred policy acquisition costs | 805 | 774 |
Land, building and equipment, net, for company use (accumulated depreciation: 2020—$285; 2019—$276) | 213 | 207 |
Other assets | 438 | 381 |
Separate accounts | 952 | 882 |
Total assets | 27,542 | 25,408 |
Insurance reserves | ||
Loss and loss expense reserves | 6,746 | 6,147 |
Life policy and investment contract reserves | 2,915 | 2,835 |
Unearned premiums | 2,960 | 2,788 |
Other liabilities | 982 | 928 |
Deferred income tax | 1,299 | 1,079 |
Note payable | 54 | 39 |
Long-term debt and lease obligations | 845 | 846 |
Separate accounts | 952 | 882 |
Total liabilities | 16,753 | 15,544 |
Commitments and contingent liabilities (Note 16) | 0 | 0 |
Shareholders' Equity | ||
Common stock, par value—$2 per share; (authorized: 2020 and 2019—500 million shares; issued: 2020 and 2019—198.3 million shares) | 397 | 397 |
Paid-in capital | 1,328 | 1,306 |
Retained earnings | 10,085 | 9,257 |
Accumulated other comprehensive income | 769 | 448 |
Treasury stock, at cost (2020—37.4 million shares and 2019—35.4 million shares) | (1,790) | (1,544) |
Total shareholders' equity | 10,789 | 9,864 |
Total liabilities and shareholders' equity | $ 27,542 | $ 25,408 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 11,312 | $ 11,108 |
Equity securities, cost | 3,927 | 3,581 |
Land, building and equipment, accumulated depreciation | $ 285 | $ 276 |
Common stock, par value | $ 2 | $ 2 |
common stock, authorized | 500,000 | 500,000 |
Common stock, issued | 198,300 | 198,300 |
Treasury stock, shares | 37,400 | 35,400 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Earned premiums | $ 5,980 | $ 5,604 | $ 5,170 |
Investment income, net of expenses | 670 | 646 | 619 |
Investment gains and losses, net | 865 | 1,650 | (402) |
Fee revenues | 11 | 15 | 15 |
Other revenues | 10 | 9 | 5 |
Total revenues | 7,536 | 7,924 | 5,407 |
Benefits and Expenses | |||
Insurance losses and contract holders' benefits | 4,134 | 3,638 | 3,490 |
Underwriting, acquisition and insurance expenses | 1,829 | 1,738 | 1,597 |
Interest expense | 54 | 53 | 53 |
Other operating expenses | 20 | 23 | 16 |
Total benefits and expenses | 6,037 | 5,452 | 5,156 |
Income Before Income Taxes | 1,499 | 2,472 | 251 |
Provision (Benefit) for Income Taxes | |||
Current | 147 | 132 | 11 |
Deferred | 136 | 343 | (47) |
Total provision (benefit) for income taxes | 283 | 475 | (36) |
Net Income | $ 1,216 | $ 1,997 | $ 287 |
Per Common Share | |||
Net income—basic (in usd per share) | $ 7.55 | $ 12.24 | $ 1.76 |
Net income—diluted (in usd per share) | $ 7.49 | $ 12.10 | $ 1.75 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 1,216 | $ 1,997 | $ 287 |
Other Comprehensive Income (Loss) | |||
Change in unrealized gains and losses on investments, net of tax (benefit) of $92, $114 and $(72), respectively | 344 | 430 | (267) |
Amortization of pension actuarial gains and losses and prior service cost, net of tax (benefit) of $(7), $2 and $(1), respectively | (25) | 5 | (3) |
Change in life deferred acquisition costs, life policy reserves and other, net of tax (benefit) of $1, $(3) and $2, respectively | 2 | (9) | 7 |
Other comprehensive income (loss) | 321 | 426 | (263) |
Comprehensive Income | $ 1,537 | $ 2,423 | $ 24 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gains on investments available-for-sale, net of tax | $ 92 | $ 114 | $ (72) |
Amortization of pension actuarial loss and prior service cost, net of tax | (7) | 2 | (1) |
Change in life deferred acquisition costs, life policy reserves and other, net of tax | $ 1 | $ (3) | $ 2 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of change in accounting for equity securities as of January 1, 2018 | $ 2,503 | $ (2,503) | ||||
Adjusted beginning of year | 7,683 | 285 | ||||
Increase to allowance through retained earnings for ASU 2016-13, after-tax | 0 | |||||
Beginning Balance at Dec. 31, 2017 | $ 397 | $ 1,265 | 5,180 | 2,788 | $ (1,387) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based awards | 0 | (17) | 21 | |||
Share-based compensation | 28 | |||||
Other | 5 | 4 | ||||
Net Income | $ 287 | 287 | ||||
Dividends declared | (345) | |||||
Other comprehensive income (loss) | (263) | (263) | ||||
Shares acquired - share repurchase authorization | (125) | |||||
Shares acquired - share-based compensation plans | (5) | |||||
Ending Balance at Dec. 31, 2018 | 7,833 | $ 397 | 1,281 | 7,625 | 22 | (1,492) |
Beginning Balance (in shares) at Dec. 31, 2017 | 163,900 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based awards (in shares) | 700 | |||||
Shares acquired—share repurchase authorization (in shares) | (1,800) | |||||
Shares acquired - share-based compensation plans (in shares) | 0 | |||||
Other (in shares) | 0 | |||||
Ending Balance (in shares) at Dec. 31, 2018 | 162,800 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of change in accounting for equity securities as of January 1, 2018 | 0 | 0 | ||||
Adjusted beginning of year | 7,625 | 22 | ||||
Increase to allowance through retained earnings for ASU 2016-13, after-tax | 0 | |||||
Share-based awards | $ 0 | (12) | 21 | |||
Share-based compensation | 30 | |||||
Other | 7 | 3 | ||||
Net Income | 1,997 | 1,997 | ||||
Dividends declared | (365) | |||||
Other comprehensive income (loss) | 426 | 426 | ||||
Shares acquired - share repurchase authorization | (67) | |||||
Shares acquired - share-based compensation plans | (9) | |||||
Ending Balance at Dec. 31, 2019 | 9,864 | $ 397 | 1,306 | 9,257 | 448 | (1,544) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based awards (in shares) | 700 | |||||
Shares acquired—share repurchase authorization (in shares) | (600) | |||||
Shares acquired - share-based compensation plans (in shares) | (100) | |||||
Other (in shares) | 100 | |||||
Ending Balance (in shares) at Dec. 31, 2019 | 162,900 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of change in accounting for equity securities as of January 1, 2018 | 0 | 0 | ||||
Adjusted beginning of year | 9,255 | 448 | ||||
Increase to allowance through retained earnings for ASU 2016-13, after-tax | (2) | (2) | ||||
Share-based awards | $ 0 | (15) | 15 | |||
Share-based compensation | 31 | |||||
Other | 6 | 5 | ||||
Net Income | 1,216 | 1,216 | ||||
Dividends declared | (386) | |||||
Other comprehensive income (loss) | 321 | 321 | ||||
Shares acquired - share repurchase authorization | (261) | |||||
Shares acquired - share-based compensation plans | (5) | |||||
Ending Balance at Dec. 31, 2020 | $ 10,789 | $ 397 | $ 1,328 | $ 10,085 | $ 769 | $ (1,790) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based awards (in shares) | 274 | 500 | ||||
Shares acquired—share repurchase authorization (in shares) | (2,500) | |||||
Shares acquired - share-based compensation plans (in shares) | (100) | |||||
Other (in shares) | 100 | |||||
Ending Balance (in shares) at Dec. 31, 2020 | 160,900 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities | |||
Net Income | $ 1,216 | $ 1,997 | $ 287 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 81 | 72 | 63 |
Investment gains and losses, net | (851) | (1,640) | 408 |
Share-based compensation | 31 | 30 | 28 |
Interest credited to contract holders | 43 | 44 | 47 |
Deferred income tax expense | 136 | 343 | (47) |
Changes in: | |||
Investment income receivable | (3) | (1) | 2 |
Premiums and reinsurance receivable | (23) | (174) | (109) |
Deferred policy acquisition costs | (39) | (61) | (48) |
Other assets | (26) | (22) | (1) |
Loss and loss expense reserves | 599 | 163 | 434 |
Life policy and investment contract reserves | 116 | 107 | 96 |
Unearned premiums | 172 | 184 | 112 |
Other liabilities | (5) | 74 | 0 |
Current income tax receivable/payable | 44 | 92 | (91) |
Net cash provided by operating activities | 1,491 | 1,208 | 1,181 |
Cash Flows From Investing Activities | |||
Sale of fixed maturities | 179 | 102 | 36 |
Call or maturity of fixed maturities | 912 | 1,241 | 1,127 |
Sale of equity securities | 515 | 203 | 403 |
Purchase of fixed maturities | (1,382) | (1,742) | (1,510) |
Purchase of equity securities | (699) | (382) | (441) |
Investment in finance receivables | (50) | (34) | (33) |
Collection of finance receivables | 35 | 29 | 25 |
Investment in buildings and equipment | (20) | (24) | (20) |
Change in other invested assets, net | (50) | (72) | (38) |
Net cash used in investing activities | (560) | (679) | (451) |
Cash Flows From Financing Activities | |||
Payment of cash dividends to shareholders | (375) | (355) | (336) |
Shares acquired - share repurchase authorization | (261) | (67) | (125) |
Changes in note payable | 15 | 7 | 8 |
Proceeds from stock options exercised | 11 | 9 | |
Contract holders' funds deposited | 85 | 86 | 84 |
Contract holders' funds withdrawn | (159) | (174) | (183) |
Other | (110) | (54) | (60) |
Net cash used in financing activities | (798) | (546) | (603) |
Net change in cash and cash equivalents | 133 | (17) | 127 |
Cash and cash equivalents at beginning of year | 767 | 784 | 657 |
Cash and cash equivalents at end of year | 900 | 767 | 784 |
Supplemental Disclosures of Cash Flow Information | |||
Interest paid | 53 | 53 | 53 |
Income taxes paid | 84 | 34 | 98 |
Noncash Activities | |||
Equipment acquired under finance lease obligations | 19 | 14 | 21 |
Share-based compensation | 19 | 9 | 5 |
Other assets and other liabilities | $ 57 | $ 29 | $ 48 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations Cincinnati Financial Corporation (CFC) operates through The Cincinnati Insurance Company and Cincinnati Global Underwriting Ltd. SM (Cincinnati Global) insurance subsidiaries and two complementary subsidiary companies. Cincinnati Global, our London-based global specialty underwriter, was acquired effective February 28, 2019. The Cincinnati Insurance Company leads our insurance group that also includes two subsidiaries: The Cincinnati Casualty Company and The Cincinnati Indemnity Company. This group markets a broad range of standard market commercial and personal policies. The group focuses on delivery of quality customer service to our select group of 1,848 independent insurance agencies with 2,578 reporting locations acros s 45 states . Other subsidiaries of The Cincinnati Insurance Company include: The Cincinnati Life Insurance Company, which markets life insurance and fixed annuities; and The Cincinnati Specialty Underwriters Insurance Company, which offers excess and surplus lines property casualty insurance products. The Cincinnati Insurance Company also conducts the business of our reinsurance assumed operations, Cincinnati Re ® . The two CFC complementary subsidiaries are CSU Producer Resources Inc., which provides insurance brokerage services to our independent agencies so their clients can access our excess and surplus lines insurance products, and CFC Investment Company, which offers commercial leasing and financing services to our agents, their clients and other customers. The World Health Organization declared the 2019 novel coronavirus (SARS-CoV-2 or COVID-19) outbreak a Public Health Emergency of International Concern on January 30, 2020, and a pandemic on March 11, 2020. The pandemic outbreak has caused an economic downturn on a global scale and although many businesses have resumed operations at some capacity, there is still uncertainty surrounding future government and private company restrictions. The pandemic, and unprecedented actions taken to contain the virus, has also continued to cause market disruption and volatility. For 2020, the company estimated that pandemic-related incurred losses and expenses totaled $85 million. The company continues to monitor the impact of the pandemic as it unfolds. The company cannot predict the impact the pandemic will have on its future consolidated financial condition, results of operations and cash flows, however the impact could be material. Basis of Presentation Our consolidated financial statements include the accounts of the parent and its wholly owned subsidiaries and are presented in conformity with accounting principles generally accepted in the United States of America (GAAP). The 2019 consolidated financial statements include Cincinnati Global's results for the period from February 28, 2019, through December 31, 2019. Foreign exchange rates related to Cincinnati Global's operations did not have a material impact to our consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. The preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Our actual results could differ from those estimates. Investments Our portfolio investments are primarily in publicly traded fixed-maturity and equity security investments. Fixed-maturity investments (taxable bonds, tax-exempt bonds, redeemable preferred equities and commercial mortgage- backed securities) classified as available for sale and equity investments (common and nonredeemable preferred equities) are recorded at fair value in the consolidated financial statements. Changes in fair value of fixed-maturity securities are reported in other comprehensive income while equity securities are reported in net income. The number of fixed-maturity securities with fair values below 100% of amortized cost can be expected to fluctuate as interest rates rise or fall. Because of our strong capital and long-term investment horizon, our general intent is to hold fixed-maturity investments until maturity, regardless of short-term fluctuations in fair values. An available for sale fixed maturity is impaired if the fair value of the security is below amortized cost. The impaired loss is charged to net income when we have the intent to sell the security or it is more likely than not we will be required to sell the security before recovery of the amortized cost. For impaired securities we intend to hold, an allowance for credit related losses is recorded in investment losses when the company determines a credit loss has been incurred based on certain factors such as adverse conditions, credit rating downgrades or failure of the issuer to make scheduled principal or interest payments. A credit loss is determined using a discounted cash flow analysis by comparing the present value of expected cash flows with the amortized cost basis, limited to the difference between fair value and amortized cost. Noncredit losses are recognized in other comprehensive income as a change in unrealized gains and losses on investments. As securities are sold, we recognize the gain or loss in income based on the trade date. Included within our other invested assets were $162 million and $164 million held on deposit at Lloyd's, $128 million and $71 million of private equity investments, $33 million and $32 million of life policy loans and $25 million and $29 million of real estate through direct property ownership and development projects in the United States at December 31, 2020 and 2019, respectively. Lloyd's deposits primarily consist of highly liquid short-term investment instruments. The private equity investments provide their financial statements to us and generally report investments on their balance sheets at fair value. We use the equity method of accounting for private equity and real estate development investments. Life policy loans are carried at the receivable value. Investment income, net of expenses, consists mainly of interest and dividends. We record interest on an accrual basis and record dividends at the ex-dividend date. We amortize premiums and discounts on fixed-maturity securities using the effective interest method over the expected life of the security. Fair Value Disclosures Fair value is defined as the exit price or the amount that would be (1) received to sell an asset or (2) paid to transfer a liability in an orderly transaction between marketplace participants at the measurement date. When determining an exit price, we rely upon observable market data whenever possible. We primarily base fair value for investments in equity and fixed-maturity securities (including redeemable preferred stock and assets held in separate accounts) on quoted market prices or on prices from the company’s nationally recognized pricing vendors, outside resources that supply global securities pricing, dividend, corporate action and descriptive information to support fund pricing, securities operations, research and portfolio management. The company obtains and reviews the pricing services' valuation methodologies and related inputs and validates these prices by replicating a sample across each asset class using a discounted cash flow model. When a price is not available from these sources, as in the case of securities that are not publicly traded, we determine the fair value using various inputs including quotes from independent brokers. The fair value of investments not priced by the company’s nationally recognized pricing vendors is immaterial. For the purpose of Accounting Standards Codification (ASC) 825, Financial Instruments disclosure, we estimate the fair value of our long-term senior notes on market pricing of similar debt instruments that are actively trading. We estimate the fair value of our note payable on the year-end outstanding balance because it is short term and tied to a variable interest rate. We estimate the fair value of liabilities for investment contracts and annuities using discounted cash flow calculations across a wide range of economic interest rate scenarios with a provision for our nonperformance risk. We estimate the fair value for policyholder loans on insurance contracts using a discounted cash flow model. Determination of fair value for structured settlements assumes the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2020, to account for nonperformance risk. See Note 3, Fair Value Measurements, for further details. Cash and Cash Equivalents Cash and cash equivalents are highly liquid instruments that include liquid debt instruments with original maturities of less than three months. These are carried at cost, which approximates fair value. Property Casualty Insurance The consolidated property casualty companies actively write property casualty insurance through independent agencies i n 45 states. Our 10 largest states generated 53.3% and 54.8% of total earned premiums in 2020 and 2019, respectively. Ohio, our largest state, accounted for 14.8% and 15.1% of total earned premiums in 2020 and 2019, respectively. Illinois, Georgia, North Carolina, Pennsylvania and Indiana each accounted for between 4% and 6% of total earned premiums in 2020. Our largest single agency relationship accounted for approximately 1.3% of our total property casualty earned premiums in 2020. No aggregate agency relationship locations under a single ownership structure accounted for more than 4% of our total property casualty earned premiums in 2020. We record revenues for installment charges as fee revenues in the consolidated statements of income. Property casualty written premiums are deferred and recorded as earned premiums primarily on a pro rata basis over the terms of the policies. We record as unearned premiums the portion of written premiums that applies to unexpired policy terms. Expenses associated with successfully acquiring insurance policies – commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We assess recoverability of deferred acquisition costs at a level consistent with the way we acquire, service and manage insurance policies and measure profitability. We analyze our acquisition cost assumptions to reflect actual experience, and we evaluate potential premium deficiencies. Certain property casualty policies are not entered into policy underwriting systems as of the effective date of coverage. An estimate is recorded for these unprocessed written premiums. A large majority of the estimate is unearned and has no material impact on earned premiums. An allowance for credit losses on uncollectible property casualty premiums is updated and reviewed on a quarterly basis. At January 1, 2020, the allowance was $9 million. At December 31, 2020, the allowance increased to $19 million, of which a significant portion was due to consideration of pandemic-related factors. Other changes in the amount during 2020 were immaterial. We establish reserves to cover the expected cost of claims, losses and expenses related to investigating, processing and resolving claims. Although the appropriate amount of reserves is inherently uncertain, we base our decisions on past experience and current facts. Reserves are based on claims reported prior to the end of the year and estimates of incurred but not reported (IBNR) claims. We regularly review and update reserves using the most current information available. Any resulting adjustments are reflected in current calendar year insurance losses and policyholder benefits. We estimate that we may recover some of our costs through salvage and subrogation. Policyholder Dividends Certain workers’ compensation policies include the possibility of a policyholder earning a return of a portion of premium in the form of a policyholder dividend. The dividend generally is calculated by determining the profitability of a policy year along with the associated premium. We reserve for all probable future policyholder dividend payments. We record policyholder dividends as other underwriting expenses. Life Insurance We offer several types of life insurance and we account for each according to the duration of the contract. Short-duration life and health contracts are written to cover claims that arise during a short, fixed term of coverage. We generally have the right to change the amount of premium charged or cancel the coverage at the end of each contract term. We record premiums for short-duration life and health contracts similarly to property casualty contracts. Long-duration contracts are written to provide coverage for an extended period of time. Traditional long-duration contracts require policyholders to pay scheduled gross premiums, generally not less frequently than annually, over the term of the coverage. Premiums for these contracts, such as whole life insurance are recognized as revenue when due. Some traditional long-duration contracts, such as ten-pay whole life insurance, have premium payment periods shorter than the period over which coverage is provided. For these contracts, the excess of premium over the amount required to pay expenses and benefits is recognized over the term of the coverage rather than over the premium payment period. We establish a liability for traditional long-duration contracts as we receive premiums. The amount of this liability is the present value of future expenses and benefits less the present value of future net premiums. Net premium is the portion of gross premium required to provide for all expenses and benefits. We estimate future expenses and benefits and net premium using assumptions for expected expenses, mortality, morbidity, withdrawal rates and investment income. We include a provision for deviation, meaning we allow for some uncertainty in making our assumptions. We establish our assumptions when the contract is issued, and we generally maintain those assumptions for the life of the contract. We use both our own experience and industry experience, adjusted for historical trends, in arriving at our assumptions for expected mortality, morbidity and withdrawal rates. We use our own experience and historical trends for setting our assumption for expected expenses. We base our assumption for expected investment income on our own experience, adjusted for current and future economic conditions. We capitalize acquisition costs for traditional long-duration contracts. We charge these capitalized costs associated with successfully acquiring traditional long-duration contract insurance policies in proportion to premium revenue recognized. We use the same assumptions used in establishing the liability for the contract. We update our acquisition cost assumptions periodically to reflect actual experience, and we evaluate our deferred acquisition costs for recoverability. Universal life contracts are long-duration contracts for which contractual provisions are not fixed, unlike whole life insurance. Universal life contracts allow policyholders to vary the amount of premium, within limits, without our consent. However, we may vary the mortality, expense charges and the interest crediting rate, within limits, used to accumulate policy values. We do not record universal life premiums as revenue. Instead we recognize as revenue the mortality charges, administration charges and surrender charges when received. Some of our universal life contracts assess administration charges in the early years of the contract that are compensation for services we will provide in the later years of the contract. These administration charges are deferred and are recognized over the period when we provide those future services. We maintain a policy reserve liability equal to the policyholder account value. There is no provision for adverse deviation. Some of our universal life policies contain no-lapse guarantee provisions. For these policies, we establish a reserve in addition to the account balance, based on expected no-lapse guarantee benefits and expected policy assessments. We capitalize acquisition costs associated with successfully acquiring universal life long-duration contracts. We charge these capitalized costs to expenses over the term of coverage of the contract in accordance with the recognition of gross profit from the contract or notional benefit base. When we charge deferred policy acquisition costs to expenses, we use assumptions based on our best estimates of long-term experience. We review and modify these assumptions on a regular basis. An allowance for credit losses on uncollectible life insurance premiums is updated and reviewed on a quarterly basis. The allowance, including changes in the amount during 2020, was immaterial to our consolidated financial condition, results of operations and cash flows. Separate Accounts We have issued universal life contracts with guaranteed minimum returns, referred to as bank-owned life insurance contracts (BOLIs). A BOLI is designed so the bank is the policy owner and the policy beneficiary. We legally segregate and record as separate accounts the assets and liabilities for some of our BOLIs, based on the specific contract provisions. We guarantee minimum investment returns, account values and death benefits for our separate account BOLIs. Our other BOLIs are general account products. We carry the assets of separate account BOLIs at fair value. The liabilities on separate account BOLIs primarily are the contract holders’ claims to the related assets and are carried at an amount equal to the contract holders’ account value. At December 31, 2020 and 2019, the current fair value of th e BOLI invested assets and cash exceeded the current fair value of the contract holders’ account value by approximately $99 million and $52 million, respectively. If the BOLI projected fair value were to fall below the value we guaranteed, a liability would be established with a corresponding charge to the company’s earnings. Generally, investment income and investment gains and losses of the separate accounts accrue directly to the contract holder, and we do not include them in the consolidated statements of income. Revenues and expenses related to separate accounts consist of contractual fees and mortality, surrender and expense risk charges. Also, each separate account BOLI includes a negotiated capital gain and loss sharing arrangement between the company and the bank. A percentage of each separate account’s investment gains and losses representing contract fees and assessments accrues to us and is transferred from the separate account to our general account and is recognized as revenue or expense. We record as revenues separate account investment management fees in fee revenues of the consolidated statements of income. Reinsurance The Cincinnati Insurance Company offers reinsurance assumed for casualty (predominantly domestic exposure), specialty and property (worldwide exposure). Treaties are written on a pro rata and excess of loss basis. We also continue to assume risk with limited exposure as a reinsurer for involuntary state pools. Written premium is recorded, net of contract specific retrocessions, on an ultimate estimate basis and primarily earned on a pro rata basis over the coverage period of the treaty. Expenses are recorded as per contract terms and deferred over the earning period of the premium. We establish known loss reserves when reported. We establish reserves for losses in excess of reported activity in the form of IBNR. Reserves are established using actuarial analysis, which includes models and methods traditionally used for the types of exposures written. We establish reserves for event specific occurrences using modeling data and company specific data when available. We enter into other reinsurance transactions to reduce risk and uncertainty by buying property casualty reinsurance and retrocessional reinsurance as well as life reinsurance. Reinsurance and retrocessional reinsurance contracts do not relieve us from our obligation to policyholders, but rather help protect our financial strength to perform that duty. All of these ceded reinsurance contracts transfer the economic risk of loss. Premiums that we cede are deferred and recorded as earned premiums on a pro rata basis over the terms of the contracts. We estimate loss amounts recoverable from our reinsurers based on the reinsurance policy terms. Historically, our claims with reinsurers have been paid. An allowance for credit losses on uncollectible reinsurance premiums and recoverable assets is updated and reviewed on a quarterly basis. The allowances, including changes in the amounts during 2020, were immaterial to our consolidated financial condition, results of operations and cash flows. Income Taxes We calculate deferred income tax liabilities and assets using tax rates in effect when temporary differences in the consolidated financial statement income and taxable income are expected to reverse. We recognize deferred income taxes for numerous temporary differences between our taxable income and consolidated financial statement income and other changes in shareholders’ equity. Such temporary differences relate primarily to unrealized gains and losses on investments and differences in the recognition of deferred acquisition costs, unearned premiums, insurance reserves and basis differences in the carrying value of investments held. We charge deferred income taxes associated with balances that impact other comprehensive income, such as unrealized gains and losses of fixed-maturity investments, to shareholders’ equity in accumulated other comprehensive income (AOCI). We charge deferred taxes associated with other differences to income. See Note 11, Income Taxes, for further detail on our uncertain tax positions and other income tax items. Although no Internal Revenue Service (IRS) penalties currently are accrued, if incurred, they would be recognized as a component of income tax expense. Earnings per Share Net income per common share is based on the weighted average number of common shares outstanding during each of the respective years. We calculate net income per common share (diluted) assuming the exercise or conversion of share‑based awards using the treasury stock method. Land, Building and Equipment We record land at cost, and record building and equipment at cost less accumulated depreciation. Equipment held under finance leases also is classified as property and equipment with the related lease obligations recorded as liabilities. We capitalize and amortize costs for internally developed computer software during the application development stage. These costs generally consist of external consulting, internal payroll and payroll-related costs. Our depreciation is based on estimated useful lives (ranging from three We monitor land, building and equipment and software assets for potential impairments. Indicators of potential impairments may include a significant decrease in the fair values of the assets, considerable cost overruns on projects, a change in legal factors or business climate or other factors that indicate that the carrying amount may not be recoverable or useful. There were no recorded land, building and equipment impairments for 2020, 2019 or 2018. Finance Receivables Our leasing subsidiary provides auto and equipment direct financing (leases and loans) to commercial and individual clients. We generally transfer ownership of the property to the client as the terms of the leases expire. Our lease contracts contain bargain purchase options. We account for these leases and loans as sales-type leases. We capitalize and amortize lease or loan origination costs over the life of the financing, using the effective interest method. These costs may include, but are not limited to finder fees, broker fees, filing fees and the cost of credit reports. We record income as other revenues over the financing term using the effective interest method in the consolidated statements of income. An allowance for credit losses on finance receivables is updated and reviewed on a quarterly basis. The allowance, including changes in the amount during 2020, was immaterial to our consolidated financial condition, results of operations and cash flows. Employee Benefit Pension Plan We sponsor a qualified defined benefit pension plan that was modified during 2008. We closed entry into the pension plan, and only participants 40 years of age or older could elect to remain in the plan. Our pension expenses are based on certain actuarial assumptions and also are composed of several components that are determined using the projected unit credit actuarial cost method. Refer to Note 13, Employee Retirement Benefits, for more information about our defined benefit pension plan. Share-Based Compensation We grant qualified and nonqualified share-based compensation under authorized plans. The stock options generally vest on a graded scale over three years following the date of grant and are exercisable over 10-year periods. We grant service-based restricted stock units that cliff vest three years after the date of grant as well as service-based restricted stock units that vest ratably over the three Goodwill and Intangible Assets We recognize goodwill and intangible assets generated through acquisitions within other assets in the consolidated balance sheets. Goodwill arises when the fair value of consideration transferred exceeds the fair value of the net identifiable assets acquired at the acquisition date. Goodwill and intangible assets with an indefinite life are not amortized. Intangible assets with a definite life are amortized on a straight-line basis over the estimated useful lives as follows: broker relationships, 15 years; internally developed technology, five years; value of business acquired, over the remaining coverage period of the underlying insurance contracts, which expired during 2020. We test for impairments on an annual basis or more frequently if events or circumstances indicate that the asset might be impaired. The company performed its annual impairment test on goodwill and intangibles on September 30, which did not result in the recognition of an impairment loss. The company held goodwill of $30 million and intangible assets with an indefinite life of $31 million at December 31, 2020 and 2019, respectively. Subsequent Events There were no subsequent events requiring adjustment to the consolidated financial statements or disclosure. Adopted Accounting Updates ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as well as additional implementation related ASU's in 2018, 2019 and 2020. These ASU’s amend previous guidance on the impairment of financial instruments by adding an impairment model that allows an entity to recognize expected credit losses as an allowance rather than impairing as they are incurred. The new guidance is intended to reduce the complexity of credit impairment models and result in a more timely recognition of expected credit losses. The standards require the company to consider all relevant information at the time of estimating the expected credit loss, including past events, the current environment, and reasonable and supportable forecasts over the life of the asset. These ASU's also eliminated the other-than-temporary impairment model for available for sale fixed-maturity securities by requiring that credit-related impairments be recognized through an allowance account. Changes in the allowance account are recorded in the period of change as a credit loss expense or reversal of credit loss expense. The measurement of credit losses is not impacted, except that credit losses recognized are limited to the amount by which fair value is below amortized cost and that the length of time that a security has been below amortized cost cannot be considered. These ASU's retain the guidance requiring that impaired securities intended to be sold have their amortized cost basis written down to fair value through net income. The company adopted these ASU's on January 1, 2020, and applied them on a modified retrospective basis. As a result of this adoption, an after-tax cumulative effect decrease of $2 million was made to retained earnings representing an increase to the overall valuation allowances for financial instruments measured at amortized cost. These ASU's were applied to available for sale fixed-maturity securities prospectively with no adjustments to the amortized cost basis of securities for which an other-than-temporary impairment had been previously recognized. The company has elected not to measure expected credit losses for accrued interest receivables related to its finance receivables and fixed-maturity securities. Pending Accounting Updates ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB issued ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . ASU 2018-12 is intended to improve the timeliness of recognizing changes in the liability for future policy benefits and modify the rate used to discount future cash flows. The ASU will simplify and improve the accounting for certain market-based options or guarantees associated with deposit or account balance contracts and simplify amortization of deferred acquisition costs while improving and expanding required disclosures. In November 2020, the FASB issued an ASU that delayed the effective date of ASU 2018-12 to interim and annual reporting periods beginning after December 15, 2022. These ASU's have not yet been adopted. Management is currently evaluating the impact on our company's consolidated financial condition, results of operations and cash flows. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Investments | Investments The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity securities: (Dollars in millions) Amortized Gross unrealized Fair At December 31, 2020 gains losses Fixed-maturity securities: Corporate $ 6,281 $ 621 $ 7 $ 6,895 States, municipalities and political subdivisions 4,604 395 2 4,997 Commercial mortgage-backed 271 15 1 285 United States government 115 5 — 120 Foreign government 29 — — 29 Government-sponsored enterprises 12 — — 12 Total $ 11,312 $ 1,036 $ 10 $ 12,338 At December 31, 2019 Fixed-maturity securities: Corporate $ 6,074 $ 332 $ 5 $ 6,401 States, municipalities and political subdivisions 4,477 252 1 4,728 Commercial mortgage-backed 290 11 — 301 United States government 102 2 — 104 Foreign government 28 — — 28 Government-sponsored enterprises 137 — 1 136 Total $ 11,108 $ 597 $ 7 $ 11,698 The net unrealized investment gains in our fixed-maturity portfolio at December 31, 2020, are primarily the result of the continued low interest rate environment that increased the fair value of our fixed-maturity portfolio . Our commercial mortgage-backed securities had an average rating of Aa1/AA at December 31, 2020 and 2019. The table below provides fair values and unrealized losses by investment category and by the duration of the securities’ continuous unrealized loss positions: (Dollars in millions) Less than 12 months 12 months or more Total At December 31, 2020 Fair Unrealized Fair Unrealized Fair Unrealized Fixed-maturity securities: Corporate $ 330 $ 5 $ 46 $ 2 $ 376 $ 7 States, municipalities and political subdivisions 31 2 2 — 33 2 Commercial mortgage-backed 23 1 6 — 29 1 United States government 12 — — — 12 — Foreign government 10 — — — 10 — Total $ 406 $ 8 $ 54 $ 2 $ 460 $ 10 At December 31, 2019 Fixed-maturity securities: Corporate $ 199 $ 2 $ 118 $ 3 $ 317 $ 5 States, municipalities and political subdivisions 98 1 10 — 108 1 Commercial mortgage-backed 6 — — — 6 — United States government — — 4 — 4 — Foreign government 11 — — — 11 — Government-sponsored enterprises 26 1 51 — 77 1 Total $ 340 $ 4 $ 183 $ 3 $ 523 $ 7 Contractual maturity dates for fixed-maturity investments were: (Dollars in millions) Amortized cost Fair % of fair value At December 31, 2020 Maturity dates: Due in one year or less $ 581 $ 589 4.8 % Due after one year through five years 3,450 3,697 30.0 Due after five years through ten years 3,789 4,178 33.9 Due after ten years 3,492 3,874 31.3 Total $ 11,312 $ 12,338 100.0 % Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties. At December 31, 2020 and 2019, the company had fixed-maturity investments with a fair value of $121 million and $117 million, respectively, on deposit with various states in compliance with regulatory requirements. In addition, cash and fixed-maturity investments deposited with third parties used as collateral to secure liabilities on behalf of insureds, cedants and other creditors had a fair value of $98 million and $95 million at December 31, 2020 and 2019, respectively. In the normal course of investing activities, the company enters into investments in limited partnerships, including private equity, real estate investments and asset-backed securities issued by third-parties. The company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the company’s consolidated balance sheets and any unfunded commitments. The following table provides investment income and investment gains and losses: (Dollars in millions) Years ended December 31, 2020 2019 2018 Investment income: Interest $ 455 $ 446 $ 445 Dividends 220 201 181 Other 8 12 5 Total 683 659 631 Less investment expenses 13 13 12 Total $ 670 $ 646 $ 619 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ 79 $ 26 $ 9 Unrealized gains and losses on securities still held, net 841 1,626 (404) Subtotal 920 1,652 (395) Fixed-maturity securities: Gross realized gains 16 13 12 Gross realized losses (3) (3) (2) Write-down of impaired securities (78) (9) (5) Subtotal (65) 1 5 Other 10 (3) (12) Total $ 865 $ 1,650 $ (402) The fair value of our equity portfolio was $8.856 billion and $7.752 billion at December 31, 2020 and 2019, respectively. At December 31, 2020 and 2019, Apple, Inc. (Nasdaq:AAPL), an equity holding, was our largest single investment holding with a fair value of $644 million and $414 million, which was 7.5% and 5.5% of our publicly traded common equities portfolio and 3.0% and 2.1% of the total investment portfolio, respectively. During 2020, there were no fixed-maturity securities with an allowance for credit losses. There were 14 fixed-maturity securities that were written down to fair value, due to an intention to be sold, for holdings in the energy, real estate, consumer goods, municipal and technology & electronics sectors. At December 31, 2020 , 128 fixed-maturity investments with a total unrealized loss of $10 million w ere in an unrealized loss position. Of that tota l, no fixed-maturity investments had fair values below 70% of amortized cost. During 2019, we other-than-temporarily impaired three securities. At December 31, 2019, 38 fixed-maturity investments with a total unrealized loss of $3 million had been in an unrealized loss position for 12 months or more. Of that total, no fixed-maturity investments had fair values below 70% of amortized cost. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Value Hierarchy The fair value hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest observable input that has a significant impact on fair value measurement is used. Our valuation techniques have not changed from those used at December 31, 2019, and ultimately management determines fair value. Financial instruments reported at fair value in our consolidated financial statements are categorized based upon the following characteristics or inputs to the valuation techniques: • Level 1 – Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in active markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities. • Level 2 – Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data. The technique used for the Level 2 fixed-maturity securities is the application of market based modeling. The inputs used for all classes of fixed-maturity securities listed in the table below include relevant market information by asset class, trade activity of like securities, marketplace quotes, benchmark yields, spreads off benchmark yields, interest rates, U.S. Treasury or swap curves, yield to maturity and economic events. Specific to commercial mortgage-backed securities, key inputs also include prepayment and default projections based on past performance of the underlying collateral and current market data. Level 2 fixed-maturity securities are priced by a nationally recognized pricing vendor. The Level 2 nonredeemable preferred equities technique used is the application of market based modeling. The inputs used, similar to those used by the pricing vendor for our fixed-maturity securities, include relevant market information, trade activity of like securities, yield to maturity, corporate action notices and economic events. Level 2 nonredeemable preferred equities are priced by a nationally recognized pricing vendor. • Level 3 – Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include the following: ◦ Quotes from brokers or other external sources that are not considered binding; ◦ Quotes from brokers or other external sources where it cannot be determined that market participants would in fact transact for the asset or liability at the quoted price; or ◦ Quotes from brokers or other external sources where the inputs are not deemed observable. The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2020 and 2019. We do not have any liabilities carried at fair value. There were no transfers between Level 1 and Level 2. (Dollars in millions) Quoted prices in Significant At December 31, 2020 Significant other Total Fixed maturities, available for sale: Corporate $ — $ 6,895 $ — $ 6,895 States, municipalities and political subdivisions — 4,997 — 4,997 Commercial mortgage-backed — 285 — 285 United States Government 120 — — 120 Foreign government — 29 — 29 Government-sponsored enterprises — 12 — 12 Subtotal 120 12,218 — 12,338 Common equities 8,541 — — 8,541 Nonredeemable preferred equities — 315 — 315 Separate accounts taxable fixed maturities — 903 — 903 Top Hat savings plan mutual funds and common 51 — — 51 Total $ 8,712 $ 13,436 $ — $ 22,148 At December 31, 2019 Fixed maturities, available for sale: Corporate $ — $ 6,401 $ — $ 6,401 States, municipalities and political subdivisions — 4,728 — 4,728 Commercial mortgage-backed — 301 — 301 United States Government 104 — — 104 Foreign government — 28 — 28 Government-sponsored enterprises — 136 — 136 Subtotal 104 11,594 — 11,698 Common equities 7,518 — — 7,518 Nonredeemable preferred equities — 234 — 234 Separate accounts taxable fixed maturities — 855 — 855 Top Hat savings plan mutual funds and common 45 — — 45 Total $ 7,667 $ 12,683 $ — $ 20,350 We also held Level 1 cash and cash equivalents of $900 million and $767 million at December 31, 2020 and 2019, respectively. Level 3 assets reported at fair value in our consolidated financial statements are not material, and therefore no further disclosures are provided. Fair Value Disclosure for Assets and Liabilities Not Carried at Fair Value The disclosures below are presented to provide information about the effects of current market conditions on financial instruments that are not reported at fair value in our consolidated financial statements. The following table shows fair values of our note payable and long-term debt: (Dollars in millions) Quoted prices in Significant other Significant Total At December 31, 2020 Note payable $ — $ 54 $ — $ 54 6.900% senior debentures, due 2028 — 35 — 35 6.920% senior debentures, due 2028 — 515 — 515 6.125% senior notes, due 2034 — 522 — 522 Total $ — $ 1,126 $ — $ 1,126 At December 31, 2019 Note payable $ — $ 39 $ — $ 39 6.900% senior debentures, due 2028 — 34 — 34 6.920% senior debentures, due 2028 — 506 — 506 6.125% senior notes, due 2034 — 512 — 512 Total $ — $ 1,091 $ — $ 1,091 Fair value of the note payable was determined based upon the outstanding balance at December 31, 2020 and 2019, because it is short term and tied to a variable interest rate. Fair value of the long-term debt was determined under the fair value measurements and disclosure accounting rules based on market pricing of similar debt instruments that are actively trading. We determine fair value for our debt the same way that we value corporate fixed maturities in our investment portfolio. Fair value can vary with macroeconomic conditions. Regardless of the fluctuations in fair value, the outstanding principal amount of our long-term debt is $793 million at both December 31, 2020 and 2019. None of the long-term debt is encumbered by rating triggers. The note payable and long-term debt were classified as Level 2 as an active market does not exist, but fair value is determined based on observable inputs. The following table shows the fair value of our life policy loans, included in other invested assets: (Dollars in millions) Quoted prices in Significant other Significant Total At December 31, 2020 Life policy loans $ — $ — $ 49 $ 49 At December 31, 2019 Life policy loans $ — $ — $ 44 $ 44 Outstanding principal and interest for these life policy loans totaled $33 million and $32 million at December 31, 2020 and 2019, respectively. To determine the fair value, we make the following significant assumptions: (1) the discount rates used to calculate the present value of expected payments are the risk-free spot rates, as nonperformance risk is minimal; and (2) the loan repayment rate by which policyholders pay off their loan balances is in line with past experience. The following table shows fair value of our deferred annuities and structured settlements included in life policy and investment contract reserves: (Dollars in millions) Quoted prices in Significant other Significant Total At December 31, 2020 Deferred annuities $ — $ — $ 836 $ 836 Structured settlements — 227 — 227 Total $ — $ 227 $ 836 $ 1,063 At December 31, 2019 Deferred annuities $ — $ — $ 770 $ 770 Structured settlements — 212 — 212 Total $ — $ 212 $ 770 $ 982 Recorded reserves for the deferred annuities were $761 million and $760 million at December 31, 2020 and 2019, respectively. Recorded reserves for the structured settlements were $145 million and $151 million at December 31, 2020 and 2019, respectively. Fair values for deferred annuities were calculated based upon internally developed models because active markets and observable inputs do not exist. To determine the fair value, we made the following significant assumptions: (1) the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2020 and 2019, to account for nonperformance risk; (2) the rate of interest credited to policyholders is the portfolio net earned interest rate less a spread for expenses and profit; and (3) additional lapses occur when the credited interest rate is exceeded by an assumed competitor credited rate, which is a function of the risk-free rate of the economic scenario being modeled. Fair values for structured settlements were calculated based on internally developed models which assume the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2020 and 2019, to account for nonperformance risk. The structured settlements were classified as Level 2 as an active market does not exist, but fair value is based on observable inputs. |
Property Casualty Loss And Loss
Property Casualty Loss And Loss Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Property Casualty Loss And Loss Expenses | Property Casualty Loss and Loss Expenses We use actuarial methods, models, assumptions and judgment to estimate, as of a financial statement date, the property casualty loss and loss expense reserves required to pay for and settle all outstanding insured claims, including IBNR claims, as of that date. The actuarial estimate is subject to review and adjustment by an inter-departmental committee that includes actuarial, claims, underwriting, loss prevention and finance management. This committee is familiar with relevant company and industry business, claims and underwriting trends, as well as general economic and legal trends that could affect future loss and loss expense payments. The amount we will actually have to pay for claims can be highly uncertain. This uncertainty, together with the size of our reserves, makes the loss and loss expense reserves our most significant estimate. Our reserving process takes into account known facts and interpretations of circumstances and factors including the type of claim, policy provisions pertaining to each claim, potential subrogation or salvage recoverable, large loss activity and trends, new business activity, judicial decisions, economic conditions, changes in law and regulation and product and underwriting changes. There have been no significant changes in methodologies and assumptions used in calculating loss and loss expense reserves for all years presented. There were no material additional premiums or return premiums accrued for as a result of prior-year effects. Our claims representatives establish case reserves when claims are reported to provide for our unpaid loss and loss expense obligation associated with individual claims. For events designated as natural catastrophes resulting in losses incurred related to direct premiums, we calculate IBNR reserves directly as a result of an estimated claim counts and estimated average dollar amount per claim for each event. Once individual case reserves are established for a catastrophe event, we reduce the IBNR reserves. Our actuarial staff uses generally accepted actuarial methods and models to derive ultimate loss and IBNR reserve estimates. The time interval between a claims occurrence and its settlement is one of the crucial attributes when estimating ultimate losses and IBNR reserves. Due to the uncertainties inherent with loss reserves, our ultimate loss experience could prove better or worse than what our carried reserves reflect. To the extent that reserves are inadequate and are required to be increased, the amount of the increase is a charge in that period, raising our loss and loss expense ratio and reducing earnings. To the extent that reserves are redundant and are required to be released, the amount of the release is a credit in that period, reducing our loss and loss expense ratio and increasing earnings. This table summarizes activity for our consolidated property casualty loss and loss expense reserves: (Dollars in millions) Years ended December 31, 2020 2019 2018 Gross loss and loss expense reserves, January 1 $ 6,088 $ 5,646 $ 5,219 Less reinsurance recoverable 342 238 187 Net loss and loss expense reserves, January 1 5,746 5,408 5,032 Net loss and loss expense reserves related to acquisition of Cincinnati Global at — 246 — Net incurred loss and loss expenses related to: Current accident year 3,968 3,600 3,390 Prior accident years (131) (248) (167) Total incurred 3,837 3,352 3,223 Net paid loss and loss expenses related to: Current accident year 1,493 1,462 1,391 Prior accident years 1,690 1,798 1,456 Total paid 3,183 3,260 2,847 Net loss and loss expense reserves, December 31 6,400 5,746 5,408 Plus reinsurance recoverable 277 342 238 Gross loss and loss expense reserves, December 31 $ 6,677 $ 6,088 $ 5,646 In 2020, 2019 and 2018, the reserve for loss and loss expense in the consolidated balance sheets also included $69 million, $59 million and $61 million, respectively, for certain life and health loss and loss expense reserves. Additional disclosures for reserves related to these health claims are not material and therefore not provided. During 2020, we experienced $131 million of favorable development on prior accident years including $95 million of favorable development in commercial lines, $18 million of favorable development in personal lines and $7 million of unfavorable development in excess and surplus lines. Within commercial lines, we recognized favorable development of $54 million for the commercial casualty line, $39 million for the workers' compensation line and $16 million for the commercial property line due to reduced uncertainty of prior accident year loss and loss expense for these lines. This was partially offset by unfavorable development of $17 million for the commercial auto line. Within personal lines, we recognized favorable reserve development of $15 million in personal auto and $5 million for the homeowner line of business. During 2019, we experienced $248 million of favorable development on prior accident years including $192 million of favorable development in commercial lines, $27 million of favorable development in personal lines and $11 million of favorable development in excess and surplus lines. Within commercial lines, we recognized favorable development of $78 million for the commercial casualty line, $77 million for the workers' compensation line, $25 million for the commercial property line and $6 million for the commercial auto line due to reduced uncertainty of prior accident year loss and loss expense for these lines. Within personal lines, we recognized favorable reserve development of $26 million in personal auto. We recognized unfavorable reserve development of $11 million for the homeowner line of business due primarily to higher-than-anticipated loss development on known claims. During 2018, we experienced $167 million of favorable development on prior accident years including $157 million of favorable development in commercial lines, $13 million of unfavorable development in personal lines, $24 million of favorable development in excess and surplus lines and $1 million of unfavorable development in our reinsurance assumed operations. We recognized favorable development of $58 million for the workers' compensation line and $47 million for both the commercial property line and commercial casualty line due to reduced uncertainty of prior accident year loss and loss expense for these lines. Included in our lines of business are asbestos and environmental claims. We carried $85 million of net loss and loss expense reserves for asbestos and environmental claims at December 31, 2020 and 2019. The asbestos and environmental claims amounts for each respective year constituted less than 2.0% of total net loss and loss expense reserves at these year-end dates. We believe our exposure to asbestos and environmental claims is limited, largely because our reinsurance retention was $500,000 or below prior to 1987. We also were predominantly a personal lines company in the 1960s and 1970s. During the 1980s and early 1990s, commercial lines grew as a percentage of our overall business and our exposure to asbestos and environmental claims grew accordingly. Over that period, we included an asbestos and environmental exclusion in almost all policies or endorsed the exclusion to the policies. We have no exposure to asbestos and environmental claims related to our acquisition of Cincinnati Global. We continue to monitor our claims for evidence of material exposure to other mass tort classes but have found no such credible evidence to date. The following table provides a reconciliation of the property casualty incurred losses and allocated loss adjustment expenses (ALAE) development and paid losses and ALAE development information at December 31, 2020. (Dollars in millions) Cumulative incurred losses Cumulative paid losses and ALAE as reported within the triangles, Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance Total liabilities for loss and ALAE, net of reinsurance Reinsurance recoverable on unpaid losses Total liabilities for gross loss and loss expense reserves Commercial casualty $ 5,179 $ 3,012 $ 91 $ 2,258 $ 24 $ 2,282 Workers' compensation 1,990 1,357 308 941 61 1,002 Commercial auto 2,235 1,581 26 680 5 685 Commercial property 3,158 2,725 15 448 66 514 Personal auto 1,860 1,610 10 260 32 292 Homeowner 1,996 1,781 4 219 18 237 Excess and surplus 836 430 1 407 16 423 Other lines 959 Total liabilities for loss and ALAE reserves 6,394 Unallocated loss adjustment expense reserves 283 Gross loss and loss expense reserves $ 6,677 For all lines of business, the claim counts reported are primarily measured by insurance coverages that are triggered when a loss occurs and a reserve is established. For this purpose, coverages are defined as unique combinations of certain attributes such as line of business and cause of loss. Claims that are opened and closed without payment are included in the reported claim counts. Claim counts are presented on a direct basis only and do not reflect any assumed or ceded reinsurance. In the following tables, commercial casualty, workers' compensation and excess and surplus lines each disclose 10 accident years of loss and ALAE reserves and the cumulative number of reported claims. Commercial auto, commercial property, personal auto and homeowner each disclose five accident years of loss and ALAE reserves and the cumulative number of reported claims as each of these lines have five year cumulative average annual percentage payouts of approximately 95% or higher. Commercial Casualty The following table shows the commercial casualty incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2020 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of Accident Unaudited Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 466 $ 404 $ 377 $ 377 $ 375 $ 380 $ 366 $ 365 $ 368 $ 361 $ — 19 2012 466 414 417 394 394 404 399 397 397 11 18 2013 448 443 431 416 413 407 391 386 22 20 2014 503 496 479 476 479 465 469 27 21 2015 533 526 529 516 508 502 54 21 2016 563 574 557 555 554 89 21 2017 610 597 577 571 124 21 2018 650 641 622 181 22 2019 672 643 293 19 2020 674 472 11 Total $ 5,179 Cumulative paid losses and ALAE, net of reinsurance 2011 $ 27 $ 93 $ 149 $ 227 $ 266 $ 298 $ 315 $ 325 $ 337 $ 342 2012 27 88 170 232 288 330 346 364 374 2013 35 90 159 232 286 312 337 348 2014 34 97 172 287 338 390 409 2015 38 108 200 287 362 404 2016 46 126 228 331 395 2017 48 122 234 320 2018 44 148 253 2019 39 134 2020 33 Total 3,012 All outstanding liabilities before 2011, net of reinsurance 91 Liabilities for loss and ALAE, net of reinsurance $ 2,258 The following table shows the average annual percentage payout of incurred losses for the commercial casualty line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 7.3% 14.9% 17.9% 18.8% 12.7% 9.1% 4.8% 3.5% 3.0% 1.7% Workers’ Compensation The following table shows the workers’ compensation incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2020 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of Accident Unaudited Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 284 $ 251 $ 246 $ 242 $ 239 $ 236 $ 231 $ 229 $ 228 $ 228 $ 17 24 2012 265 245 234 220 213 211 209 208 207 19 21 2013 264 246 221 212 208 205 202 201 12 20 2014 261 233 214 203 201 198 197 13 19 2015 246 220 208 195 179 173 26 17 2016 230 218 206 188 183 27 16 2017 218 208 190 183 46 15 2018 222 207 199 52 15 2019 224 215 65 14 2020 204 100 10 Total $ 1,990 Cumulative paid losses and ALAE, net of reinsurance 2011 $ 65 $ 131 $ 161 $ 177 $ 186 $ 190 $ 192 $ 195 $ 197 $ 198 2012 62 121 147 162 171 175 178 180 182 2013 61 119 144 157 164 168 170 174 2014 56 110 134 148 157 162 165 2015 47 93 115 129 134 137 2016 46 97 119 131 141 2017 45 88 106 114 2018 48 95 115 2019 49 94 2020 37 Total 1,357 All outstanding liabilities before 2011, net of reinsurance 308 Liabilities for loss and ALAE, net of reinsurance $ 941 The following table shows the average annual percentage payout of incurred losses for the workers’ compensation line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 25.9% 26.3% 11.9% 6.7% 4.1% 2.0% 1.4% 1.2% 1.1% 0.5% Commercial Auto The following table shows the commercial auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2020 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2016 2017 2018 2019 2020 2016 $ 417 $ 430 $ 450 $ 463 $ 474 $ 5 53 2017 451 441 443 444 13 51 2018 453 442 442 36 49 2019 452 451 73 46 2020 424 164 33 Total $ 2,235 Cumulative paid losses and ALAE, net of reinsurance 2016 $ 184 $ 273 $ 350 $ 408 $ 441 2017 187 266 334 381 2018 184 266 337 2019 183 268 2020 154 Total 1,581 All outstanding liabilities before 2016, net of reinsurance 26 Liabilities for loss and ALAE, net of reinsurance $ 680 The following table shows the average annual percentage payout of incurred losses for the commercial auto line of business. Commercial auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 39.9% 18.6% 15.8% 11.5% 7.0% Commercial Property The following table shows the commercial property incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2020 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2016 2017 2018 2019 2020 2016 $ 590 $ 551 $ 541 $ 545 $ 542 $ 2 17 2017 587 560 556 565 3 18 2018 630 603 590 7 18 2019 621 606 6 17 2020 855 141 22 Total $ 3,158 Cumulative paid losses and ALAE, net of reinsurance 2016 $ 358 $ 504 $ 528 $ 539 $ 539 2017 395 522 547 560 2018 386 559 576 2019 413 561 2020 489 Total 2,725 All outstanding liabilities before 2016, net of reinsurance 15 Liabilities for loss and ALAE, net of reinsurance $ 448 The following table shows the average annual percentage payout of incurred losses for the commercial property line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 65.3% 25.8% 3.9% 2.1% 0.1% Personal Auto The following table shows the personal auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2020 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2016 2017 2018 2019 2020 2016 $ 383 $ 384 $ 386 $ 384 $ 384 $ 1 110 2017 412 394 391 393 1 109 2018 424 398 395 1 111 2019 399 383 14 102 2020 305 62 67 Total $ 1,860 Cumulative paid losses and ALAE, net of reinsurance 2016 $ 243 $ 316 $ 351 $ 370 $ 378 2017 256 324 358 374 2018 262 327 358 2019 250 314 2020 186 Total 1,610 All outstanding liabilities before 2016, net of reinsurance 10 Liabilities for loss and ALAE, net of reinsurance $ 260 The following table shows the average annual percentage payout of incurred losses for the personal auto line of business. Personal auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 64.2% 17.3% 8.6% 4.6% 2.0% Homeowner The following table shows the homeowner incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2020 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2016 2017 2018 2019 2020 2016 $ 315 $ 304 $ 303 $ 302 $ 304 $ — 23 2017 356 383 385 387 — 26 2018 370 386 387 5 24 2019 432 421 10 22 2020 497 54 21 Total $ 1,996 Cumulative paid losses and ALAE, net of reinsurance 2016 $ 208 $ 283 $ 295 $ 299 $ 302 2017 277 356 378 384 2018 268 368 378 2019 303 391 2020 326 Total 1,781 All outstanding liabilities before 2016, net of reinsurance 4 Liabilities for loss and ALAE, net of reinsurance $ 219 The following table shows the average annual percentage payout of incurred losses for the homeowner line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 69.3% 23.0% 4.1% 1.4% 0.8% Excess and Surplus Lines The following table shows the excess and surplus lines incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2020 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 48 $ 47 $ 44 $ 38 $ 36 $ 35 $ 35 $ 34 $ 34 $ 34 $ — 1 2012 67 56 49 40 37 36 35 36 35 — 1 2013 74 64 54 45 42 41 41 41 2 2 2014 95 82 75 64 60 59 59 5 2 2015 96 81 73 67 65 66 6 2 2016 93 87 84 82 90 13 3 2017 104 95 95 94 15 3 2018 116 109 110 29 3 2019 137 135 50 3 2020 172 $ 105 2 Total $ 836 Cumulative paid losses and ALAE, net of reinsurance 2011 $ 8 $ 14 $ 23 $ 27 $ 30 $ 32 $ 34 $ 33 $ 33 $ 33 2012 9 15 19 25 29 31 32 33 34 2013 7 12 20 27 32 34 37 39 2014 9 17 27 37 43 48 51 2015 8 19 29 41 51 54 2016 10 21 39 51 62 2017 11 23 41 57 2018 11 26 50 2019 13 34 2020 16 Total 430 All outstanding liabilities before 2011, net of reinsurance 1 Liabilities for loss and ALAE, net of reinsurance $ 407 The following table shows the average annual percentage payout of incurred losses for the excess and surplus lines insurance segment. Excess and surplus lines consist mostly of commercial casualty and commercial property coverages. A majority of the incurred losses paid after year 2 are the result of commercial casualty losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 14.6% 14.4% 19.2% 15.4% 11.7% 6.9% 3.9% 2.2% 1.0% 0.2% |
Life Policy And Investment Cont
Life Policy And Investment Contract Reserves | 12 Months Ended |
Dec. 31, 2020 | |
Liability for Future Policy Benefit, before Reinsurance [Abstract] | |
Life Policy And Investment Contract Reserves | Life Policy and Investment Contract Reserves We establish the reserves for traditional life insurance policies based on expected expenses, mortality, morbidity, withdrawal rates, timing of claim presentation and investment yields, including a provision for uncertainty. Once these assumptions are established, they generally are maintained throughout the lives of the contracts. We use both our own experience and industry experience, adjusted for historical trends, in arriving at our assumptions for expected mortality, morbidity and withdrawal rates as well as for expected expenses. We base our assumptions for expected investment income on our own experience adjusted for current and future economic conditions. We establish reserves for the company’s universal life, deferred annuity and structured settlement policies equal to the cumulative account balances, which include premium deposits plus credited interest less charges and withdrawals. Some of our universal life policies contain no-lapse guarantee provisions. For these policies, we establish a reserve in addition to the account balance, based on expected no-lapse guarantee benefits and expected policy assessments. This table summarizes our life policy and investment contract reserves: (Dollars in millions) At December 31, 2020 2019 Life policy reserves: Ordinary/traditional life $ 1,301 $ 1,226 Other 52 50 Subtotal 1,353 1,276 Investment contract reserves: Deferred annuities 761 760 Universal life 647 640 Structured settlements 145 151 Other 9 8 Subtotal 1,562 1,559 Total life policy and investment contract reserves $ 2,915 $ 2,835 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Expenses directly related to successfully acquired insurance policies – primarily commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We update our acquisition cost assumptions periodically to reflect actual experience, and we evaluate the costs for recoverability. The table below shows the deferred policy acquisition costs and asset reconciliation: (Dollars in millions) Years ended December 31, 2020 2019 2018 Property casualty: Deferred policy acquisition costs asset, January 1 $ 512 $ 464 $ 438 Capitalized deferred policy acquisition costs 1,087 1,034 933 Amortized deferred policy acquisition costs (1,057) (986) (907) Deferred policy acquisition costs asset, December 31 $ 542 $ 512 $ 464 Life: Deferred policy acquisition costs asset, January 1 $ 262 $ 274 $ 232 Capitalized deferred policy acquisition costs 58 61 60 Amortized deferred policy acquisition costs (49) (48) (39) Shadow deferred policy acquisition costs (8) (25) 21 Deferred policy acquisition costs asset, December 31 $ 263 $ 262 $ 274 Consolidated: Deferred policy acquisition costs asset, January 1 $ 774 $ 738 $ 670 Capitalized deferred policy acquisition costs 1,145 1,095 993 Amortized deferred policy acquisition costs (1,106) (1,034) (946) Shadow deferred policy acquisition costs (8) (25) 21 Deferred policy acquisition costs asset, December 31 $ 805 $ 774 $ 738 No premium deficiencies were recorded in the consolidated statements of income in 2020, 2019 and 2018, as the sum of the anticipated loss and loss expenses, policyholder dividends and unamortized deferred acquisition expenses did not exceed the related unearned premiums and anticipated investment income. |
Note Payable
Note Payable | 12 Months Ended |
Dec. 31, 2020 | |
Notes Payable, Current [Abstract] | |
Note Payable | Note Payable We have one unsecured revolving credit facility through multiple commercial banks which was due to expire on February 4, 2025, with the option of a one-year extension remaining from the 2019 amendment. The borrowing capacity is $300 million with an additional $300 million accordion feature. Terms and conditions of the agreement include a debt-to-total capital maximum of 35%. On December 11, 2020, we exercised our option to extend the term of the line of credit one year to February 4, 2026. We had no compensating balance requirements on short-term debt for either 2020 or 2019. At December 31, 2020 and 2019, $54 million and $39 million was drawn on the line of credit, respectively. The interest rate charged on our borrowings on this credit agreement ranged from 1.03% to 4.25% during 2020 and ranged from 2.59% to 3.41% during 2019. In addition, we have letters of credit related to our Cincinnati Re and Cincinnati Global operations with no amounts drawn at December 31, 2020 and 2019. |
Long-Term Debt And Lease Obliga
Long-Term Debt And Lease Obligation | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Debt and Lease Obligation [Abstract] | |
Long-Term Debt And Capital Lease Obligation | Long-Term Debt and Lease Obligations This table summarizes the principal amounts of our long-term debt excluding unamortized discounts, none of which are encumbered by rating triggers: (Dollars in millions) Book value Principal amount Interest rate Year of At December 31, At December 31, 2020 2019 2020 2019 6.900% 1998 Senior debentures, due 2028 $ 27 $ 27 $ 28 $ 28 6.920% 2005 Senior debentures, due 2028 391 391 391 391 6.125% 2004 Senior notes, due 2034 370 370 374 374 Total $ 788 $ 788 $ 793 $ 793 The finance lease term for equipment and autos is three $3 million of interest for finance and operating leases: (Dollars in millions) Years ended December 31, 2021 2022 2023 2024 2025 2026 and thereafter Finance lease obligations $ 15 $ 12 $ 10 $ 6 $ 4 $ 2 Operating lease obligations 2 2 2 2 1 2 Total lease obligations $ 17 $ 14 $ 12 $ 8 $ 5 $ 4 The following table provides lease cost and other information for the year ended December 31, 2020 and 2019: (Dollars in millions) 2020 2019 Lease cost: Finance lease cost $ 15 $ 9 Operating lease cost 4 4 Total lease cost $ 19 $ 13 Other information finance leases: Finance cash outflows $ 15 $ 15 Weighted average discount rate 2.62 % 2.96 % Weighted average remaining lease term in years 3.67 3.65 Other information operating leases: Operating cash outflows $ 8 $ 8 Weighted average discount rate 3.65 % 3.69 % Weighted average remaining lease term in years 4.84 4.71 |
Shareholders' Equity And Divide
Shareholders' Equity And Dividend Restrictions | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders Equity And Dividend Restrictions [Abstract] | |
Shareholders' Equity And Dividend Restrictions | Shareholders’ Equity and Dividend Restrictions Declared cash dividends per share were $2.40 , $2.24 and $2.12 for the years ended December 31, 2020, 2019 and 2018, respectively. Our lead insurance subsidiary, The Cincinnati Insurance Company, paid dividends to the parent company of $550 million in 2020, $625 million in 2019 and $500 million in 2018. State regulatory requirements restrict the dividends insurance subsidiaries can pay. Generally, the most our lead insurance subsidiary can pay without prior regulatory approval is the greater of 10% of statutory capital and surplus or 100% of statutory net income for the prior calendar year. Dividends exceeding these limitations may be paid only with approval of the insurance department of the domiciliary state. During 2021, the total that our lead insurance subsidiary may pay in dividends is approximately $583 million. Dividend payments from Cincinnati Global to the parent company are subject to regulation by U.K. law. Cincinnati Global paid no dividends to the parent company in either 2020 or 2019. Accumulated Other Comprehensive Income The table below shows beginning and end of year accumulated other comprehensive income (AOCI) for investments, pension obligations, life deferred acquisition costs, life policy reserves and other. The changes from the beginning of year to the end of year are the result of changes to other comprehensive income or loss (OCI). (Dollars in millions) 2020 2019 2018 Before Income Net Before Income Net Before Income Net Investments: AOCI, January 1 $ 590 $ 123 $ 467 $ 46 $ 9 $ 37 $ 3,540 $ 733 $ 2,807 Cumulative effect of change in accounting for equity securities as of January 1, 2018 — — — — — — (3,155) (652) (2,503) Adjusted AOCI, beginning of period 590 123 467 46 9 37 385 81 304 OCI before investment gains and losses, net, recognized in net income 371 78 293 545 115 430 (334) (71) (263) Investment gains and losses, net, recognized in net income 65 14 51 (1) (1) — (5) (1) (4) OCI 436 92 344 544 114 430 (339) (72) (267) AOCI, December 31 $ 1,026 $ 215 $ 811 $ 590 $ 123 $ 467 $ 46 $ 9 $ 37 Pension obligations: AOCI, January 1 $ (9) $ — $ (9) $ (16) $ (2) $ (14) $ (12) $ (1) $ (11) OCI excluding amortization recognized in net income (35) (7) (28) 6 2 4 (5) (1) (4) Amortization recognized in net income 3 — 3 1 — 1 1 — 1 OCI (32) (7) (25) 7 2 5 (4) (1) (3) AOCI, December 31 $ (41) $ (7) $ (34) $ (9) $ — $ (9) $ (16) $ (2) $ (14) Life deferred acquisition costs, life policy reserves and other: AOCI, January 1 $ (13) $ (3) $ (10) $ (1) $ — $ (1) $ (10) $ (2) $ (8) OCI before investment gains and losses, net, recognized in net income 3 1 2 (15) (3) (12) (3) (1) (2) Investment gains and losses, net, recognized in net income — — — 3 — 3 12 3 9 OCI 3 1 2 (12) (3) (9) 9 2 7 AOCI, December 31 $ (10) $ (2) $ (8) $ (13) $ (3) $ (10) $ (1) $ — $ (1) Summary of AOCI: AOCI, January 1 $ 568 $ 120 $ 448 $ 29 $ 7 $ 22 $ 3,518 $ 730 $ 2,788 Cumulative effect of change in accounting for equity securities as of January 1, 2018 — — — — — — (3,155) (652) (2,503) Adjusted AOCI, beginning of period 568 120 448 29 7 22 363 78 285 Investments OCI 436 92 344 544 114 430 (339) (72) (267) Pension obligations OCI (32) (7) (25) 7 2 5 (4) (1) (3) Life deferred acquisition costs, life policy reserves and other OCI 3 1 2 (12) (3) (9) 9 2 7 Total OCI 407 86 321 539 113 426 (334) (71) (263) AOCI, December 31 $ 975 $ 206 $ 769 $ 568 $ 120 $ 448 $ 29 $ 7 $ 22 Investments gains and losses, net, and life deferred acquisition costs, life policy reserves and other investment gains and losses, net, are recorded in the investment gains and losses, net, line item in the consolidated statements of income. Amortization on pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses line items in the consolidated statements of income. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance Primary components of our property casualty reinsurance assumed operations include involuntary and voluntary assumed as well as contracts from our reinsurance assumed operations, known as Cincinnati Re. Primary components of our ceded reinsurance include a property per risk treaty, property excess treaty, casualty per occurrence treaty, casualty excess treaty, property catastrophe treaty and catastrophe bonds and retrocessions on our reinsurance assumed operations. Management’s decisions about the appropriate level of risk retention are affected by various factors, including changes in our underwriting practices, capacity to retain risks and reinsurance market conditions. The table below summarizes our consolidated property casualty insurance net written premiums, earned premiums and incurred loss and loss expenses: (Dollars in millions) Years ended December 31, 2020 2019 2018 Direct written premiums $ 5,756 $ 5,477 $ 5,018 Assumed written premiums 335 244 173 Ceded written premiums (227) (205) (161) Net written premiums $ 5,864 $ 5,516 $ 5,030 Direct earned premiums $ 5,623 $ 5,340 $ 4,931 Assumed earned premiums 285 199 149 Ceded earned premiums (217) (205) (160) Earned premiums $ 5,691 $ 5,334 $ 4,920 Direct incurred loss and loss expenses $ 3,699 $ 3,402 $ 3,188 Assumed incurred loss and loss expenses 184 117 125 Ceded incurred loss and loss expenses (46) (167) (90) Incurred loss and loss expenses $ 3,837 $ 3,352 $ 3,223 Our life insurance company purchases reinsurance for protection of a portion of risks that are written. Primary components of our life reinsurance program include individual mortality coverage, aggregate catastrophe and accidental death coverage in excess of certain deductibles. The table below summarizes our consolidated life insurance earned premiums and contract holders' benefits incurred: (Dollars in millions) Years ended December 31, 2020 2019 2018 Direct earned premiums $ 362 $ 341 $ 320 Ceded earned premiums (73) (71) (70) Earned premiums $ 289 $ 270 $ 250 Direct contract holders' benefits incurred $ 359 $ 359 $ 328 Ceded contract holders' benefits incurred (62) (73) (61) Contract holders' benefits incurred $ 297 $ 286 $ 267 The ceded benefits incurred can vary depending on the type of life insurance policy held and the year the policy was issued. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The significant components of deferred tax assets and liabilities included in the consolidated balance sheets at December 31 were as follows: (Dollars in millions) At December 31, 2020 2019 Deferred tax assets: Unearned premiums $ 119 $ 113 Loss and loss expense reserves 81 66 Deferred international earnings 45 51 Net operating loss on international earnings 26 4 Other 41 39 Deferred tax assets before valuation allowance 312 273 Valuation allowance for international operations 56 41 Deferred tax assets net of valuation allowance 256 232 Deferred tax liabilities: Investment gains and other, net 1,240 995 Deferred acquisition costs 143 139 Life policy reserves 121 120 Investments 13 23 Other 38 34 Total gross deferred tax liabilities 1,555 1,311 Net deferred income tax liability $ 1,299 $ 1,079 Deferred tax assets and liabilities reflect temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount recognized for tax purposes. Deferred tax assets are reduced by a valuation allowance when management believes it is more likely than not that some, or all, of the deferred tax assets will not be realized. After considering all positive and negative evidence of taxable income in the carryback and carryforward periods as permitted by law, we believe it is more likely than not that all of the deferred tax assets on our U.S. domestic operations will be realized. As a result, we have no valuation allowance as of December 31, 2020 and 2019 for our U.S. domestic operations. As more fully discussed below, we do carry a valuation allowance on the deferred tax assets related to Cincinnati Global. For financial reporting purposes, income (loss) before income taxes includes the following components: (Dollars in millions) For the years ended December 31, 2020 2019 2018 United States $ 1,521 $ 2,440 $ 251 International (22) 32 — Total income before income taxes $ 1,499 $ 2,472 $ 251 The provision (benefit) for income taxes consists of: (Dollars in millions) For the years ended December 31, 2020 2019 2018 Provision (benefit) for income taxes: Current – United States federal $ 147 $ 137 $ 11 International — (5) — Total current 147 132 11 Deferred – United States federal 136 338 (47) International — 5 — Total deferred 136 343 (47) Total provision (benefit) for income taxes $ 283 $ 475 $ (36) The differences between the 21% statutory federal income tax rate and our effective income tax rate were as follows: (Dollars in millions) Years ended December 31, 2020 2019 2018 Tax at statutory rate: $ 315 21.0 % $ 519 21.0 % $ 53 21.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds (20) (1.3) (19) (0.8) (20) (8.0) Dividend received exclusion (17) (1.1) (16) (0.6) (15) (6.0) Tax accounting method changes — — — — (50) (19.9) Other 5 0.3 (9) (0.4) (4) (1.4) Provision (benefit) for income taxes $ 283 18.9 % $ 475 19.2 % $ (36) (14.3) % In 2018, we received approval from the IRS to change our method of tax accounting for certain items applicable for the 2017 tax year and tax return, primarily related to the valuation of our tax basis unpaid losses. Accounting guidance does not allow recognition of the impact of certain tax accounting method changes until approved by the IRS. As a result, we recognized a $50 million income tax benefit in 2018 for the difference between the current 21% tax rate and the 2017 tax rate of 35% for the related items. This reduced our effective tax rate by 19.9% for the year ended December 31, 2018. The provision for federal income taxes is based upon the filing of a consolidated income tax return for the company and its domestic subsidiaries within the United States. As of December 31, 2020, 2019 and 2018, we have no operating loss carryforwards in the United States. For the years ended December 31, 2020, 2019 and 2018, we have no capital loss carryforwards in the United States. As more fully discussed below, Cincinnati Global, has operating loss carryforwards in the United Kingdom. As more fully discussed in Note 1, Summary of Significant Accounting Policies, COVID-19 was declared a pandemic on March 11, 2020. In response to the pandemic, various stimulus legislation was enacted in 2020 including the Coronavirus Aid, Relief and Economic Security Act (CARES Act), signed into law on March 27, 2020 and the Consolidated Appropriations Act, 2021 (CAA Act), signed into law on December 27, 2020. We have evaluated both Acts as well as other pandemic-related legislation enacted in 2020 and believe any impact to our financial statements, as a result of such legislation, will be immaterial. Unrecognized Tax Benefits As of December 31, 2020, 2019 and 2018, we had a gross unrecognized tax benefit of $34 million . The following is a tabular reconciliation of the total amounts of unrecognized tax benefits. (Dollars in millions) Years ended December 31, 2020 2019 2018 Gross unrecognized tax benefits, January 1 $ 34 $ 34 $ — Gross increase in prior year positions — — — Gross decrease in prior year positions — — — Gross increase in current year positions — — 34 Settlements with tax authorities — — — Lapse of statute of limitations — — — Gross unrecognized tax benefits, December 31 $ 34 $ 34 $ 34 The unrecognized tax benefit liability is carried in other liabilities in the consolidated balance sheets. Included in the unrecognized tax benefit liability as of December 31, 2020 is $34 million that, if recognized, would affect the effective tax ra te in the period of the release. Although no interest and penalties currently are accrued, if incurred, they would be recognized as a component of income tax expense. We do not expect any changes to our unrecognized tax benefit liability in the next twelve months. The statute of limitations for federal tax purposes has generally closed for tax years ended December 31, 2016 and earlier, however, as a result of certain net operating loss carryback claims we have filed, the IRS maintains a limited ability to assess tax for the 2015 tax year. In 2019, the IRS began its examination of the tax year ended December 31, 2017 and they have expanded their scope to include tax year ended December 31, 2018. At this time, no adjustments have been proposed. In addition to our IRS filings, we file income tax returns with immaterial amounts in various state jurisdictions and record these amounts in our provision for income taxes for both current and deferred taxes. The statute of limitations for state income tax purposes has closed for tax years ended December 31, 2016 and earlier. Cincinnati Global operates in the United Kingdom and as such, is subject to tax in that jurisdiction. The statute of limitation for tax return review by Her Majesty’s Revenue and Customs (HMRC) has closed for tax years ended December 31, 2018 and earlier. There are currently no tax returns under review by HMRC. Income taxes paid in our consolidated statements of cash flows are shown net of refunds received. We received no refunds in 2020, $94 million in 2019 and none in 2018. Cincinnati Global Cincinnati Global's operating results for the year ended December 31, 2020, increased their net deferred assets by $15 million with an offsetting increase of $15 million to their valuation allowance. As of December 31, 2020, Cincinnati Global had a net deferred tax asset of $56 million and an offsetting valuation allowance of $56 million. Deferred tax assets are reduced by a valuation allowance when management believes it is more likely than not that some, or all, of the deferred tax assets will not be realized. After considering all positive and negative evidence, including cumulative losses related to the operations of Cincinnati Global, we believe it was appropriate to set up a valuation allowance for purposes of our opening Cincinnati Global balance sheet and is appropriate to carry a valuation allowance as of December 31, 2020 and 2019. The following is a tabular reconciliation of the total amounts of our Cincinnati Global valuation allowance. (Dollars in millions) Years ended December 31, 2020 2019 Valuation allowance, January 1 $ 41 $ — Acquisition accounting amount — 55 Current year operations 15 (14) Valuation allowance, December 31 $ 56 $ 41 As of December 31, 2020, and 2019, Cincinnati Global had operating loss carryforwards in the United States of $26 million and $20 million and in the United Kingdom of $108 million and $127 million , respectively. These Cincinnati Global losses can only be utilized within the Cincinnati Global group in both the United States and in the United Kingdom and cannot offset the income of our CFC group domestic operations in the United States. |
Net Income Per Common Share
Net Income Per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are computed based on the weighted average number of common and dilutive potential common shares outstanding using the treasury stock method. The table shows calculations for basic and diluted earnings per share: (In millions, except per share data) Years ended December 31, 2020 2019 2018 Numerator: Net income—basic and diluted $ 1,216 $ 1,997 $ 287 Denominator: Basic weighted-average common shares outstanding 161.2 163.2 163.2 Effect of share-based awards: Stock options 0.7 1.2 0.8 Nonvested shares 0.5 0.7 0.5 Diluted weighted-average shares 162.4 165.1 164.5 Earnings per share: Basic $ 7.55 $ 12.24 $ 1.76 Diluted 7.49 12.10 1.75 Number of anti-dilutive share-based awards 1.4 — 1.3 |
Employee Retirement Benefits
Employee Retirement Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefits | Employee Retirement Benefits We sponsor a qualified defined benefit pension plan that we closed entry into for new associates as of June 30, 2008, and only participants 40 years of age or older as of August 31, 2008, could elect to continue to participate. During 2008, we changed the form of retirement benefit we offer some associates to a company match on contributions to a 401(k) plan as further explained below. For participants remaining in the pension plan, we continue to fund future benefit obligations. Benefits for the defined benefit pension plan are based on years of credited service and compensation level. Contributions are based on the prescribed method defined in the Pension Protection Act. Our net periodic benefit cost is based on certain actuarial assumptions and also is composed of several components that are determined using the projected unit credit actuarial cost method. The qualified plan has been amended to allow for distribution of vested balances to terminated participants. We sponsor a defined contribution plan (401(k) plan) for eligible associates with matching company contributions totaling $22 million, $19 million and $18 million during the years 2020, 2019 and 2018, respectively. Associates who are not accruing benefits under the pension plan are eligible to receive the company match of up to 6% of cash compensation. Participants vest in the company match for the 401(k) plan after three years of eligible service. We maintain a supplemental executive retirement plan (SERP) with a benefit obligation of $10 million at year-end 2020 and $11 million at year-end 2019, which is included in the projected benefit obligation. The company also makes available to a select group of associates the CFC Top Hat Savings Plan, a nonqualified deferred compensation plan, which had a fair value of $51 million and $45 million at December 31, 2020 and 2019, respectively. Company matching contributions to the CFC Top Hat Savings Plan totaled approximately $1 million for the years 2020, 2019 and 2018, respectively. Defined Benefit Pension Plan Assumptions We evaluate our pension plan assumptions annually and update them as necessary. This is a summary of the weighted-average assumptions used to determine our benefit obligations at December 31 for the plans: Qualified Pension Plan SERP 2020 2019 2020 2019 Discount rate 2.68 % 3.40 % 2.52 % 3.33 % Rate of compensation increase 2.25-3.25 2.25-3.25 2.25-3.25 2.25-3.25 To determine the discount rate for each plan, a theoretical settlement portfolio of high-quality rated corporate bonds was chosen to provide payments approximately matching the plan’s projected benefit payments. A single interest rate for each plan was determined resulting in a discounted value of the plan's benefit payments that equates to the market value of the selected bonds. The discount rate is reflective of current market interest rate conditions and our plan's liability characteristics. Based on this analysis, we decreased the rate from the prior year by 0.72 percentage points for the qualified pension plan and by 0.81 percentage points for the SERP. Compensation increase assumptions reflect anticipated rates of inflation, real return on wage growth and merit and promotional increases. The mortality assumption is updated annually to reflect the updated scale. The Pri-2012 tables with Scale MP-2020 and Scale MP-2019 were used for the years 2020 and 2019, respectively. The RP-2014 table projected generationally with Scale MP-2018 was used for the year 2018. The updated mortality table did not have a significant impact on our consolidated financial statements as our qualified plan assumes the majority of benefits will be paid in the form of lump sums. This is a summary of the weighted-average assumptions used to determine our net periodic benefit cost for the plans: Qualified Pension Plan SERP 2020 2019 2018 2020 2019 2018 Discount rate 3.40 % 4.34 % 3.73 % 3.33 % 4.25 % 3.61 % Expected return on plan assets 7.00 7.00 7.25 n/a n/a n/a Rate of compensation increase 2.25-3.25 2.25-3.25 2.75-3.25 2.25-3.25 2.25-3.25 2.75-3.25 The discount rate was decreased by 0.94 percentage points for the qualified pension plan and 0.92 percentage points for the SERP due to market interest rate conditions at the beginning of 2020. The discount rate assumptions for our benefit obligation generally track with high-quality rated corporate bond yields chosen in our theoretical settlement portfolio, and yearly adjustments reflect any changes to those bond yields. We believe the expected return on plan assets is representative of the expected long-term rate of return on these assets, which is consistent with 2020 expectations of interest rates and based partially on the fact that the plan’s common stock holdings pay dividends. We review historical actual return on plan assets when determining our expected long-term rate of return. Total portfolio return for 2020 was 11.4% and for 2019 was 24.5%. Our compensation increase assumptions in 2020 reflect anticipated rates of inflation, real return on wage growth and merit and promotional increases. Benefit obligation activity using an actuarial measurement date for our qualified pension plan and SERP at December 31 follows: (Dollars in millions) At December 31, 2020 2019 Change in projected benefit obligation: Benefit obligation, January 1 $ 350 $ 318 Service cost 9 8 Interest cost 12 13 Actuarial loss 51 45 Benefits paid (35) (34) Projected benefit obligation, December 31 $ 387 $ 350 Change in plan assets: Fair value of plan assets, January 1 $ 354 $ 318 Actual return on plan assets 34 70 Employer contribution 4 — Benefits paid (35) (34) Fair value of plan assets, December 31 $ 357 $ 354 Funded status, December 31 $ (30) $ 4 Accumulated benefit obligation $ 360 $ 327 Our plan was in an unfunded status for 2020 compared to 2019 primarily due to lower year over year return on plan assets, increases in actuarial losses from decreases in discount rates and changes to assumed lump sum basis. The lump sum basis was changed from a Pension Benefit Guaranty Corporation (PBGC) rate, which is no longer being published by the PBGC after December 31, 2020, and mortality rates based on GAM83 tables with minor adjustments, to Internal Revenue Code (IRC) Section 417(e) interest rates and IRC Section 417(e) mortality rates, updated annually and projected into the future. The lump sum basis change resulted in an increase to our actuarial loss at December 31, 2020. A reconciliation follows of the funded status for our qualified plan and SERP at the end of the measurement period to the amounts recognized in the consolidated balance sheets at December 31: (Dollars in millions) At December 31, 2020 2019 Pension amounts recognized in the consolidated balance sheets: Other (liability) assets $ (30) $ 4 Total $ (30) $ 4 Pension amounts recognized in accumulated other comprehensive income: Net actuarial loss $ 41 $ 9 Total $ 41 $ 9 Below are the components of our net periodic benefit cost, as well as other changes in plan assets and benefit obligations recognized in other comprehensive income for our qualified plan and SERP at December 31: (Dollars in millions) Years ended December 31, 2020 2019 2018 Net periodic benefit cost: Service cost $ 9 $ 8 $ 11 Non-service costs (benefit): Interest cost 12 13 13 Expected return on plan assets (21) (20) (22) Amortization of actuarial loss and prior service cost 3 1 1 Other 3 1 2 Net periodic benefit cost $ 6 $ 3 $ 5 Other changes in plan assets and benefit obligations recognized in other Current year actuarial (gain) loss $ 38 $ (5) $ 7 Amortization of actuarial loss (6) (2) (3) Total recognized in other comprehensive (income) loss $ 32 $ (7) $ 4 Total recognized in net periodic benefit cost and other comprehensive $ 38 $ (4) $ 9 The 2020 change in the amount recognized in other comprehensive income from 2019 is largely due to changes in the actuarial loss resulting from decreases in discount rates and changes to assumed lump sum basis as discussed above. Service costs and non-service costs (benefit) are allocated in the same proportion primarily to underwriting, acquisition and insurance expenses line item with the remainder allocated to the insurance losses and contract holders' benefits line item on the consolidated statements of income for 2020, 2019 and 2018. Defined Benefit Pension Plan Assets The pension plan assets are managed to maximize total return over the long term while providing sufficient liquidity and current return to satisfy the cash flow requirements of the plan. The plan’s day-to-day investment decisions are managed by our internal investment department; however, overall investment strategies are discussed with our employee benefits committee. Our investment strategy is to weight our portfolio towards large-cap, high-quality, dividend-growing equities that we have historically favored. As our plan matures and interest rates normalize, we expect a greater allocation to fixed-income securities to better align asset and liability market risks. Our fixed-maturity bond portfolio is investment grade. The plan does not engage in derivative transactions. Excluding cash, during 2020 we held approximately 82% of our pension portfolio in domestic common equity investments. The remainder of the portfolio consisted of 9% in United States government fixed-maturity investments, 6% in domestic corporate fixed-maturity investments and 3% in states, municipalities and taxable political subdivisions fixed-maturity investments. Our common equity portfolio consisted of 26% in the information technology sector, 20% in the financial sector, 13% in the industrial sector, and 12% in the healthcare sector at year-end 2020. No additional sectors accounted for 10% or more of our common equity portfolio balance at year-end 2020. Investments in securities are valued based on the fair value hierarchy outlined in Note 3, Fair Value Measurements. The pension plan did not have any liabilities carried at fair value during the years ended December 31, 2020 and 2019. There have been no transfers between Level 1 and Level 2 for the years ended December 31, 2020 and 2019. The following table shows the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2020 and 2019. Excluded from the table below is cash on hand of $31 million and $17 million at December 31, 2020 and 2019, respectively. (Dollars in millions) Quoted prices in Significant other Significant Total At December 31, 2020 Fixed maturities, available for sale: United States Government $ 31 $ — $ — $ 31 Corporate — 20 — 20 States, municipalities and political subdivisions — 9 — 9 Total fixed maturities, available for sale 31 29 — 60 Common equities 266 — — 266 Total $ 297 $ 29 $ — $ 326 At December 31, 2019 Fixed maturities, available for sale: United States Government $ 25 $ — $ — $ 25 Corporate — 27 — 27 States, municipalities and political subdivisions — 25 — 25 Total fixed maturities, available for sale 25 52 — 77 Common equities 260 — — 260 Total $ 285 $ 52 $ — $ 337 Our pension plan assets included 202,337 and 232,113 shares of the company’s common stock at December 31, 2020 and 2019, which had a fair value of $18 million and $24 million at December 31, 2020 and 2019, respectively. The defined benefit pension plan did not purchase any of our common stock during 2020 or 2019. The defined benefit pension plan sold 29,776 shares of our common stock during 2020 and did not sell any shares during 2019. The company paid less than $1 million in 2020 and 2019 in cash dividends on our common stock to the pension plan. We estimate $8 million of benefit payments from the SERP during 2021. We expect to make the following benefit payments for our qualified plan and SERP, reflecting expected future service: (Dollars in millions) Years ended December 31, 2021 2022 2023 2024 2025 2026 - 2030 Expected future benefit payments $ 49 $ 22 $ 25 $ 27 $ 29 $ 163 |
Statutory Accounting Informatio
Statutory Accounting Information | 12 Months Ended |
Dec. 31, 2020 | |
Staturory Accounting Information [Abstract] | |
Statutory Accounting Information | Statutory Accounting Information Insurance companies’ statutory financial statements are presented on the basis of accounting practices prescribed or permitted by applicable state insurance departments of domicile. Insurance companies use statutory accounting practices (SAP) as recognized by various states. We have adopted the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures manual, version effective January 1, 2001, and updates through the current year as a component of prescribed or permitted practices by laws of the state of domicile. The primary differences between SAP and GAAP include the valuation of investment gains and losses, expensing of policy acquisition costs, actuarial assumptions for life insurance reserves and deferred income taxes based on differences in statutory and taxable income. Statutory net income and capital and surplus are determined in accordance with SAP prescribed or permitted by insurance regulatory authorities for five legal entities, our lead insurance subsidiary and its four insurance subsidiaries. Statutory capital and surplus for our insurance subsidiary, The Cincinnati Insurance Company, includes capital and surplus of its four insurance subsidiaries. All capital and surplus amounts exceed statutory risk-based capital requirements. The statutory net income and statutory capital and surplus are presented below: (Dollars in millions) Net income Capital and surplus Years ended December 31, At December 31, 2020 2019 2018 2020 2019 The Cincinnati Insurance Company $ 466 $ 558 $ 626 $ 5,838 $ 5,620 The Cincinnati Casualty Company 14 13 16 456 437 The Cincinnati Indemnity Company 3 3 5 115 111 The Cincinnati Specialty Underwriters Insurance Company 42 62 69 528 526 The Cincinnati Life Insurance Company 27 19 — 241 204 |
Transactions With Affiliated Pa
Transactions With Affiliated Parties | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Transactions With Affiliated Parties | Transactions With Affiliated PartiesWe paid certain officers and directors, or insurance agencies of which they are shareholders, commissions of $7 million in 2020, $8 million in 2019 and $7 million in 2018, on premium volume of $45 million, $48 million and $45 million for 2020, 2019 and 2018, respectively. |
Commitments And Contingent Liab
Commitments And Contingent Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingent Liabilities | Commitments and Contingent Liabilities In the ordinary course of conducting business, the company and its subsidiaries are named as defendants in various legal proceedings. Most of these proceedings are claims litigation involving the company’s insurance subsidiaries in which the company is either defending or providing indemnity for third-party claims brought against insureds or litigating first-party coverage claims. The company accounts for such activity through the establishment of unpaid loss and loss expense reserves. We believe that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, is immaterial to our consolidated financial condition, results of operations and cash flows. Beginning in April 2020, like many companies in the property casualty insurance industry, the company’s property casualty subsidiaries, were named as defendants in lawsuits seeking insurance coverage under commercial property insurance policies issued by the company for alleged losses resulting from the shutdown or suspension of their businesses due to the COVID-19 pandemic. Although the allegations vary, the plaintiffs generally seek a declaration of insurance coverage, damages for breach of contract in unspecified amounts for claim denials, interest and attorney fees. Some of the lawsuits also allege that the insurance claims were denied in bad faith or otherwise in violation of state laws and seek extra-contractual or punitive damages. The company denies the allegations in these lawsuits and intends to continue to vigorously defend the lawsuits. The company maintains that it has no coverage obligations with respect to these lawsuits for business income allegedly lost by the plaintiffs due to the COVID-19 pandemic based on the terms of the applicable insurance policies. Although the policy terms vary in general, the claims at issue in these lawsuits were denied because the policyholder identified no direct physical loss or damage to property at the insured premises, and the governmental orders that led to the complete or partial shutdown of the business were not due to the existence of any direct physical loss or damage to property in the immediate vicinity of the insured premises and did not prohibit access to the insured premises, as required by the terms of the insurance policies. Depending on the individual policy, additional policy terms and conditions may also prohibit coverage, such as exclusions for pollutants, ordinance or law, loss of use, and acts or decisions. The company’s standard commercial property insurance policies generally did not contain a specific virus exclusion. In addition to the inherent difficulty in predicting litigation outcomes, the COVID-19 pandemic business income coverage lawsuits present a number of uncertainties and contingencies that are not yet known, including how many policyholders will ultimately file claims, the number of lawsuits that will be filed, the extent to which any class may be certified, and the size and scope of any such classes. The legal theories advanced by plaintiffs vary by case as do the state laws that govern the policy interpretation. These lawsuits are in the early stages of litigation; many complaints continue to be amended; several have been dismissed voluntarily and may be refiled; and others have been dismissed by trial courts. Some early decisions on motion filings have been appealed. Accordingly, little discovery has occurred on pending cases and few substantive legal rulings have been made. In addition, business income calculations depend upon a wide range of factors that are particular to the circumstances of each individual policyholder and, here, virtually none of the plaintiffs have submitted proofs of loss or otherwise quantified or factually supported any allegedly covered loss. Moreover, the company’s experience shows that demands for damages often bear little relation to a reasonable estimate of potential loss. Accordingly, management cannot now reasonably estimate the possible loss or range of loss, if any. Nonetheless, given the number of claims and potential claims, the indeterminate amounts sought, and the inherent unpredictability of litigation, it is possible that adverse outcomes, if any, in the aggregate could have a material adverse effect on the company’s consolidated financial condition, results of operations and cash flows. The company and its subsidiaries also are occasionally involved in other legal and regulatory proceedings, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of a national class. Such proceedings have alleged, for example, breach of an alleged duty to search national databases to ascertain unreported deaths of insureds under life insurance policies. The company’s insurance subsidiaries also are occasionally parties to individual actions in which extra-contractual damages, punitive damages or penalties are sought, such as claims alleging bad faith handling of insurance claims or writing unauthorized coverage or claims alleging discrimination by former or current associates. |
Share-Based Associate Compensat
Share-Based Associate Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Associate Compensation Plans | Share-Based Associate Compensation Plans Four equity compensation plans currently permit us to grant various types of equity awards. We currently grant incentive stock options, nonqualified stock options, service-based restricted stock units and performance-based restricted stock units to associates, including some with market-based performance objectives under our shareholder-approved plans. We also have a Holiday Stock Plan that permits annual awards of one share of common stock to each full-time associate for each full calendar year of service up to a maximum of 10 shares. One of our equity compensation plans permits us to grant stock to our outside directors as a component of their annual compensation. We used treasury shares for share-based compensation award issues or exercises during 2020 and 2019. Share-based compensation cost after tax was $25 million, $24 million and $23 million for the years ended December 31, 2020, 2019 and 2018, respectively. The related income tax benefit recognized was $6 million, $6 million , and $5 million for the years ended December 31, 2020, 2019 and 2018, respectively. Options exercised during the years ended December 31, 2020, 2019 and 2018, had intrinsic value of $15 million, $26 million and $15 million, respectively. Intrinsic value is the market price less the exercise price. Options vested during the years ended December 31, 2020, 2019 and 2018, had total intrinsic value of $7 million, $23 million and $6 million, respectively. As of December 31, 2020, we had $34 million of unrecognized total compensation cost related to nonvested stock options and restricted stock unit awards. That cost will be recognized over a weighted-average period of 1.7 years. Stock Options Stock options are granted to associates at an exercise price equal to the fair value as determined by the average high and low sales price reported on the Nasdaq Global Select Market for the grant date and are exercisable over 10-year periods. The stock options generally vest ratably over a three • Weighted-average expected term is based on historical experience of similar awards with consideration for current exercise trends. • Expected volatility is based on our stock price over a historical period that approximates the expected term. • Dividend yield is determined by dividing the annualized per share dividend by the stock price on the date of grant. • Risk-free rates are the implied yield currently available on zero-coupon U.S. Treasury issues with a remaining term approximating the expected term. The following weighted average assumptions were used in determining fair value for option grants issued: 2020 2019 2018 Weighted-average expected term 7-8 years 7-8 years 7-8 years Expected volatility 16.89-17.13% 14.49-15.39% 15.04-15.10% Dividend yield 2.15% 2.61% 2.98% Risk-free rates 1.40-1.41% 2.62-2.64% 2.77-2.83% Weighted-average fair value of options granted during the period $15.45 $11.73 $9.87 Below is a summary of option information for the year 2020: (Dollars in millions, except exercise price. Shares in thousands) Shares Weighted- Aggregate Weighted-average Outstanding option shares at January 1, 2020 3,437 $ 63.99 Granted 508 111.53 Exercised (274) 41.86 Forfeited or expired (70) 55.60 Outstanding option shares at December 31, 2020 3,601 72.55 $ 66 6.01 years Options exercisable at end of period 2,509 $ 63.11 $ 61 4.97 years Cash received from the exercise of options was $7 million, $11 million and $9 million for the years ended December 31, 2020, 2019 and 2018, respectively. We acquired 50,751 , 103,237 and 69,649 shares totaling $5 million, $9 million and $5 million, respectively, from associates in consideration for option exercises during 2020, 2019 and 2018. The weighted-average remaining contractual life for options expected to vest as of December 31, 2020, was 8.38 years. Under all active shareholder approved plans, a total of 17.3 million shares were authorized to be granted. At December 31, 2020, 7.1 million shares remained available for future issuance under the plans. During 2020, we granted 12,928 shares of common stock to our directors for 2019 board service fees. Restricted Stock Units Service-based restricted stock units granted to associates are valued at fair value of the shares on the date of grant less the present value of the dividends that holders of restricted stock units do not receive on the shares underlying the restricted stock units during the vesting period. Service-based restricted stock units generally cliff vest three years after the date of grant. We also grant restricted stock units which vest on a three We have performance-based awards that vest on the first day of March after a three three three Three For the three-year performance period ended December 31, 2020, our total shareholder return exceeded eight of our nine peers. We expect payout of these shares at the maximum level to occur in March of 2021. During 2020, we issued 56,722 shares of performance-based restricted stock units at the target-level performance hurdle for the three-year performance period ended December 31, 2019, as our total shareholder return exceeded five of nine peers in our 2017 peer group. We issued 20,549 shares of performance-based restricted stock units during 2019 at the threshold-level performance hurdle for the three These performance-based awards are valued using a Monte-Carlo valuation on the date of grant, which uses a risk-neutral framework to model future stock price movements based upon the risk-free rate of return, the volatility of each peer and the pairwise correlations of each peer being modeled. Compensation cost is recognized regardless of whether the market-based performance objective has been satisfied. We make assumptions to develop the Monte-Carlo model as follows: • Correlation coefficients are based upon the stock price data used to calculate the historical volatilities. The correlation coefficients are used to model the way the price of each entity's stock tends to move in relation to each other. • Expected volatility is based on each company's historical volatility using daily stock price observations with the period commensurate with the performance measurement period. • Dividend yield has been modeled assuming dividends are reinvested in additional shares of the issuing entity on the ex-dividend date during the performance period. • Risk-free rates are equal to the yield, as of the measurement date, of the zero-coupon U.S. Treasury bill that is commensurate with the performance measurement period. The following assumptions were used in determining fair value for performance-based grants issued: 2020 2019 2018 Expected term 2.86 years 2.86 years 2.89 years Expected volatility 15.88-25.13% 15.10-25.00% 16.01-26.32% Dividend yield 2.15% 2.61% 2.81% Risk-free rates 1.30% 2.48% 2.22% Below is a summary of service-based and performance-based share information, assuming a target payout for performance-based shares, for the year 2020: (Shares in thousands) Service-based Weighted- Performance-based Weighted- Nonvested at January 1, 2020 783 $ 70.27 165 $ 64.23 Granted 204 104.81 38 111.77 Vested (269) 66.53 (56) 43.26 Forfeited or canceled (22) 78.96 — — Nonvested at December 31, 2020 696 81.56 147 84.64 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
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 assets, regardless of ownership, in the investments segment. Segment information is summarized in the following table: (Dollars in millions) Years ended December 31, 2020 2019 2018 Revenues: Commercial lines insurance Commercial casualty $ 1,165 $ 1,102 $ 1,075 Commercial property 1,010 958 920 Commercial auto 755 707 664 Workers' compensation 271 300 324 Other commercial 275 252 235 Commercial lines insurance premiums 3,476 3,319 3,218 Fee revenues 3 5 5 Total commercial lines insurance 3,479 3,324 3,223 Personal lines insurance Personal auto 615 621 614 Homeowner 658 607 563 Other personal 190 176 159 Personal lines insurance premiums 1,463 1,404 1,336 Fee revenues 4 4 5 Total personal lines insurance 1,467 1,408 1,341 Excess and surplus lines insurance 325 278 234 Fee revenues 2 2 1 Total excess and surplus lines insurance 327 280 235 Life insurance premiums 289 270 250 Fee revenues 2 4 4 Total life insurance 291 274 254 Investments Investment income, net of expenses 670 646 619 Investment gains and losses, net 865 1,650 (402) Total investment revenue 1,535 2,296 217 Other Premiums 427 333 132 Other 10 9 5 Total other revenue 437 342 137 Total revenues $ 7,536 $ 7,924 $ 5,407 Income (loss) before income taxes: Insurance underwriting results Commercial lines insurance $ 64 $ 241 $ 151 Personal lines insurance 47 8 (20) Excess and surplus lines insurance 34 53 63 Life insurance 11 1 8 Investments 1,433 2,197 121 Other (90) (28) (72) Total income before income taxes $ 1,499 $ 2,472 $ 251 December 31, December 31, Identifiable assets: 2020 2019 Property casualty insurance $ 3,838 $ 3,437 Life insurance 1,661 1,516 Investments 21,332 19,583 Other 711 872 Total $ 27,542 $ 25,408 |
Quarterly Supplementary Data
Quarterly Supplementary Data | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Supplementary Data | Quarterly Supplementary Data This table includes unaudited quarterly financial information for the years ended December 31, 2020 and 2019: (Dollars in millions, except per share data) Quarter 1st 2nd 3rd 4th Full year 2020 Revenues $ (99) $ 2,714 $ 2,227 $ 2,694 $ 7,536 Income (loss) before income taxes (1,576) 1,145 614 1,316 1,499 Net income (loss) (1,226) 909 484 1,049 1,216 Net income (loss) per common share—basic (7.56) 5.65 3.01 6.52 7.55 Net income (loss) per common share—diluted (7.56) 5.63 2.99 6.47 7.49 2019 Revenues $ 2,159 $ 1,913 $ 1,700 $ 2,152 $ 7,924 Income before income taxes 867 530 294 781 2,472 Net income 695 428 248 626 1,997 Net income per common share—basic 4.27 2.62 1.51 3.84 12.24 Net income per common share—diluted 4.22 2.59 1.49 3.79 12.10 |
Summary Of Investments Other Th
Summary Of Investments Other Than Investments In Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary Of Investments Other Than Investments In Related Parties | Schedule I Cincinnati Financial Corporation and Subsidiaries Summary of Investments - Other Than Investments in Related Parties (Dollars in millions) At December 31, 2020 Type of investment Cost or Fair Balance sheet Fixed maturities: States, municipalities and political subdivisions: The Cincinnati Insurance Company $ 3,346 $ 3,638 $ 3,638 The Cincinnati Casualty Company 219 238 238 The Cincinnati Indemnity Company 48 52 52 The Cincinnati Life Insurance Company 357 387 387 The Cincinnati Specialty Underwriters Insurance Company 580 629 629 CSU Producer Resources Inc. 1 1 1 Cincinnati Financial Corporation 53 52 52 Total 4,604 4,997 4,997 United States government: The Cincinnati Insurance Company 65 70 70 The Cincinnati Casualty Company 1 1 1 The Cincinnati Indemnity Company 1 1 1 Cincinnati Global Underwriting Ltd. 48 48 48 Total 115 120 120 Foreign government: The Cincinnati Insurance Company 10 10 10 Cincinnati Global Underwriting Ltd. 19 19 19 Total 29 29 29 Government-sponsored enterprises: Cincinnati Global Underwriting Ltd. 1 1 1 Cincinnati Financial Corporation 11 11 11 Total 12 12 12 All other corporate bonds: The Cincinnati Insurance Company 2,964 3,211 3,211 The Cincinnati Casualty Company 103 110 110 The Cincinnati Indemnity Company 30 33 33 The Cincinnati Life Insurance Company 3,192 3,540 3,540 The Cincinnati Specialty Underwriters Insurance Company 189 211 211 CSU Producer Resources Inc. 1 1 1 Cincinnati Global Underwriting Ltd. 68 69 69 Cincinnati Financial Corporation 5 5 5 Total 6,552 7,180 7,180 Total fixed maturities $ 11,312 $ 12,338 $ 12,338 Schedule I (continued) Cincinnati Financial Corporation and Subsidiaries Summary of Investments - Other Than Investments in Related Parties (Dollars in millions) At December 31, 2020 Type of investment Cost or Fair Balance sheet Equity securities: Common equities: The Cincinnati Insurance Company $ 1,846 $ 4,423 $ 4,423 The Cincinnati Casualty Company 56 146 146 The Cincinnati Indemnity Company 17 36 36 The Cincinnati Specialty Underwriters Insurance Company 96 217 217 CSU Producer Resources Inc. 19 33 33 Cincinnati Financial Corporation 1,606 3,686 3,686 Total 3,640 8,541 8,541 Nonredeemable preferred equities: The Cincinnati Insurance Company 274 299 299 The Cincinnati Life Insurance Company 12 15 15 Cincinnati Financial Corporation 1 1 1 Total 287 315 315 Total equity securities $ 3,927 $ 8,856 $ 8,856 Other invested assets: Policy loans: The Cincinnati Life Insurance Company $ 33 — $ 33 Deposits at Lloyd's: Cincinnati Global Underwriting Ltd. 53 — 53 Cincinnati Financial Corporation 109 — 109 Private equity: The Cincinnati Insurance Company (1) 94 — 94 The Cincinnati Life Insurance Company (1) 3 — 3 Cincinnati Financial Corporation (1) 31 — 31 Real estate: The Cincinnati Insurance Company (1) 11 — 11 The Cincinnati Life Insurance Company (1) 9 — 9 Cincinnati Financial Corporation (1) 5 — 5 Total other invested assets $ 348 — $ 348 Total investments $ 15,587 — $ 21,542 |
Condensed Financial Statements
Condensed Financial Statements Of Parent Company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Statements Of Parent Company | Schedule II Cincinnati Financial Corporation (parent company only) Condensed Balance Sheets (Dollars in millions) At December 31, 2020 2019 Assets Investments Fixed maturities, at fair value (amortized cost: 2020—$69; 2019—$49) $ 68 $ 49 Equity securities, at fair value (cost: 2020—$1,607; 2019—$1,427) 3,687 3,069 Other invested assets 145 103 Total investments 3,900 3,221 Cash and cash equivalents 16 197 Equity in net assets of subsidiaries 7,982 7,424 Investment income receivable 8 7 Land, building and equipment, net, for company use (accumulated depreciation: 2020—$138; 2019—$129) 143 141 Income tax receivable 5 2 Other assets 53 61 Due from subsidiaries 110 107 Total assets $ 12,217 $ 11,160 Liabilities Dividends declared but unpaid $ 97 $ 91 Deferred federal income tax 429 345 Long-term debt 788 788 Other liabilities 114 72 Total liabilities 1,428 1,296 Shareholders' Equity Common stock 397 397 Paid-in capital 1,328 1,306 Retained earnings 10,085 9,257 Accumulated other comprehensive income 769 448 Treasury stock, at cost (1,790) (1,544) Total shareholders' equity 10,789 9,864 Total liabilities and shareholders' equity $ 12,217 $ 11,160 This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8. Schedule II (continued) Cincinnati Financial Corporation (parent company only) Condensed Statements of Income and Comprehensive Income (Dollars in millions) Years ended December 31, 2020 2019 2018 Revenues Investment income, net of expenses $ 81 $ 75 $ 65 Investment gains and losses, net 556 728 (108) Other revenue 15 15 15 Total revenues 652 818 (28) Expenses Interest expense 54 52 52 Other expenses 34 37 31 Total expenses 88 89 83 Income (Loss) Before Income Taxes and Earnings of Subsidiaries 564 729 (111) Provision (Benefit) for Income Taxes 111 146 (31) Net Income (Loss) Before Earnings of Subsidiaries 453 583 (80) Increase in equity of subsidiaries 763 1,414 367 Net Income $ 1,216 $ 1,997 $ 287 Other Comprehensive Income (Loss), Net of Taxes Change in unrealized gain (loss) on securities — — (2) Amortization of pension actuarial gains (losses) and prior service costs (25) 5 (3) Other Comprehensive Income (Loss), Net of Taxes Before Other Comprehensive Income (25) 5 (5) Other comprehensive income (loss) of subsidiaries 346 421 (258) Other comprehensive income (loss) 321 426 (263) Comprehensive Income $ 1,537 $ 2,423 $ 24 This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8. Schedule II (continued) Cincinnati Financial Corporation (parent company only) Condensed Statements of Cash Flows (Dollars in millions) Years ended December 31, 2020 2019 2018 Cash Flows From Operating Activities Net income $ 1,216 $ 1,997 $ 287 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 12 10 7 Investment gains and losses, net (552) (720) 114 Dividends from subsidiaries 550 625 500 Changes in: Increase in equity of subsidiaries (763) (1,414) (367) Investment income receivable (1) (1) 2 Current federal income taxes (3) (1) 14 Deferred income tax 91 146 (35) Other assets — 4 (17) Other liabilities 1 4 3 Intercompany receivable for operations 34 20 19 Net cash provided by operating activities 585 670 527 Cash Flows From Investing Activities Sale of fixed maturities — 3 1 Call or maturity of fixed maturities 1 21 19 Sale of equity securities 307 122 131 Purchase of fixed maturities (23) (39) (17) Purchase of equity securities (372) (237) (177) Investment in buildings and equipment (11) (13) (12) Cash paid for acquisition — (63) — Change in other invested assets, net (42) (67) (11) Net cash used in investing activities (140) (273) (66) Cash Flows From Financing Activities Payment of cash dividends to shareholders (375) (355) (336) Shares acquired - share repurchase authorization (261) (67) (125) Proceeds from stock options exercised 7 11 9 Other 3 2 1 Net cash used in financing activities (626) (409) (451) Net change in cash and cash equivalents (181) (12) 10 Cash and cash equivalents at beginning of year 197 209 199 Cash and cash equivalents at end of year $ 16 $ 197 $ 209 |
Supplementary Insurance Informa
Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | Schedule III Cincinnati Financial Corporation and Subsidiaries Supplementary Insurance Information (Dollars in millions) Years ended December 31, 2020 2019 2018 Deferred policy acquisition costs: Commercial lines insurance $ 317 $ 311 $ 291 Personal lines insurance 136 130 126 Excess and surplus lines insurance 28 25 21 Other 61 46 26 Total property casualty insurance 542 512 464 Life insurance 263 262 274 Total $ 805 $ 774 $ 738 Gross future policy benefits, losses, claims and expense losses: Commercial lines insurance $ 4,881 $ 4,569 $ 4,466 Personal lines insurance 739 687 679 Excess and surplus lines insurance 446 351 298 Other 611 481 203 Total property casualty insurance 6,677 6,088 5,646 Life insurance 2,938 2,859 2,802 Total (1) $ 9,615 $ 8,947 $ 8,448 Gross unearned premiums: Commercial lines insurance $ 1,714 $ 1,665 $ 1,576 Personal lines insurance 797 757 725 Excess and surplus lines insurance 175 152 123 Other 273 213 91 Total property casualty insurance 2,959 2,787 2,515 Life insurance 1 1 1 Total (1) $ 2,960 $ 2,788 $ 2,516 Other policy claims and benefits payable: Commercial lines insurance $ — $ — $ — Personal lines insurance — — — Excess and surplus lines insurance — — — Other — — — Total property casualty insurance — — — Life insurance 46 35 38 Total (1) $ 46 $ 35 $ 38 Earned premiums: Commercial lines insurance $ 3,476 $ 3,319 $ 3,218 Personal lines insurance 1,463 1,404 1,336 Excess and surplus lines insurance 325 278 234 Other 427 333 132 Total property casualty insurance 5,691 5,334 4,920 Life insurance 289 270 250 Total $ 5,980 $ 5,604 $ 5,170 Schedule III (continued) Cincinnati Financial Corporation and Subsidiaries Supplementary Insurance Information (Dollars in millions) Years ended December 31, 2020 2019 2018 Investment income, net of expenses: Commercial lines insurance $ — $ — $ — Personal lines insurance — — — Excess and surplus lines insurance — — — Other — — — Total property casualty insurance (2) 431 419 401 Life insurance 158 152 153 Total $ 589 $ 571 $ 554 Benefits, claims losses and settlement expenses: Commercial lines insurance $ 2,336 $ 2,030 $ 2,049 Personal lines insurance 977 985 972 Excess and surplus lines insurance 199 142 104 Other 325 195 98 Total property casualty insurance 3,837 3,352 3,223 Life insurance 297 286 267 Total $ 4,134 $ 3,638 $ 3,490 Amortization of deferred policy acquisition costs: Commercial lines insurance $ 664 $ 631 $ 608 Personal lines insurance 256 251 242 Excess and surplus lines insurance 51 47 39 Other 86 57 18 Total property casualty insurance 1,057 986 907 Life insurance 49 48 39 Total (3) $ 1,106 $ 1,034 $ 946 Underwriting, acquisition and insurance expenses: Commercial lines insurance $ 415 $ 422 $ 415 Personal lines insurance 187 164 147 Excess and surplus lines insurance 43 38 29 Other 42 42 24 Total property casualty insurance 687 666 615 Life insurance 36 38 36 Total (3) $ 723 $ 704 $ 651 Net written premiums: Commercial lines insurance $ 3,534 $ 3,410 $ 3,245 Personal lines insurance 1,503 1,435 1,378 Excess and surplus lines insurance 348 303 249 Other 479 368 158 Total property casualty insurance 5,864 5,516 5,030 Accident and health insurance 2 2 3 Total $ 5,866 $ 5,518 $ 5,033 Notes to Schedule III: (1) The sum of gross future policy benefits, losses, claims and expense losses, gross unearned premiums and other policy claims and benefits payable is equal to the sum of Loss and loss expense reserves, Life policy reserves and investment contract reserves and Unearned premiums reported in the company’s consolidated balance sheets. (2) This segment information is not regularly allocated to segments and reviewed by company management in making decisions about resources to be allocated to the segments or to assess their performance. (3) The sum of amortization of deferred policy acquisition costs and other underwriting and insurance expenses is equal to Underwriting, acquisition and insurance expenses in the consolidated statements of income. |
Reinsurance - Schedule IV
Reinsurance - Schedule IV | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Text Block] | Schedule IV Cincinnati Financial Corporation and Subsidiaries Reinsurance (Dollars in millions) Years ended December 31, 2020 2019 2018 Gross amounts: Life insurance in force $ 111,756 $ 108,130 $ 104,726 Earned premiums Commercial lines insurance $ 3,578 $ 3,421 $ 3,314 Personal lines insurance 1,503 1,446 1,372 Excess and surplus lines insurance 341 292 245 Other 201 181 — Total property casualty insurance 5,623 5,340 4,931 Life insurance 362 341 320 Total $ 5,985 $ 5,681 $ 5,251 Ceded amounts to other companies: Life insurance in force $ 38,281 $ 38,146 $ 38,584 Earned premiums Commercial lines insurance $ 109 $ 109 $ 104 Personal lines insurance 41 43 37 Excess and surplus lines insurance 16 14 11 Other 51 39 8 Total property casualty insurance 217 205 160 Life insurance 73 71 70 Total $ 290 $ 276 $ 230 Assumed amounts from other companies: Life insurance in force $ — $ — $ — Earned premiums Commercial lines insurance $ 7 $ 7 $ 8 Personal lines insurance 1 1 1 Excess and surplus lines insurance — — — Other 277 191 140 Total property casualty insurance 285 199 149 Life insurance — — — Total $ 285 $ 199 $ 149 Net amounts: Life insurance in force $ 73,475 $ 69,984 $ 66,142 Earned premiums Commercial lines insurance $ 3,476 $ 3,319 $ 3,218 Personal lines insurance 1,463 1,404 1,336 Excess and surplus lines insurance 325 278 234 Other 427 333 132 Total property casualty insurance 5,691 5,334 4,920 Life insurance 289 270 250 Total $ 5,980 $ 5,604 $ 5,170 Percentage of amounts assumed to net: Life insurance in force — % — % — % Earned premiums Commercial lines insurance 0.2 % 0.2 % 0.3 % Personal lines insurance 0.1 0.1 0.1 Excess and surplus lines insurance — — — Other 64.9 57.4 106.1 Total property casualty insurance 5.0 3.7 3.0 Life insurance — — — Total 4.8 3.6 2.9 |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | Schedule V Cincinnati Financial Corporation and Subsidiaries Valuation and Qualifying Accounts (Dollars in millions) At December 31, 2020 2019 2018 Allowance for credit losses (1): Beginning balance, January 1 $ 8 $ 6 $ 6 Cumulative effect of change in accounting for credit losses as of January 1, 2020, pretax 3 — — Additions charged to costs and expenses 19 8 6 Deductions (8) (6) (6) Ending balance, December 31 $ 22 $ 8 $ 6 Deferred tax valuation allowance: Beginning balance, January 1 $ 41 $ — $ — Additions charged to costs and expenses 15 55 — Deductions — (14) — Ending balance, December 31 56 41 — Total valuation and qualifying accounts $ 78 $ 49 $ 6 Notes to Schedule V: |
Supplementary Information Conce
Supplementary Information Concerning Property Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Supplementary Information Concerning Property Casualty Insurance Operations | Schedule VI Cincinnati Financial Corporation and Subsidiaries Supplementary Information Concerning Property Casualty Insurance Operations (Dollars in millions) Years ended December 31, 2020 2019 2018 Deferred policy acquisition costs: Commercial lines insurance $ 317 $ 311 $ 291 Personal lines insurance 136 130 126 Excess and surplus lines insurance 28 25 21 Other 61 46 26 Total $ 542 $ 512 $ 464 Reserves for unpaid claims and claim adjustment expenses: Commercial lines insurance $ 4,881 $ 4,569 $ 4,466 Personal lines insurance 739 687 679 Excess and surplus lines insurance 446 351 298 Other 611 481 203 Total $ 6,677 $ 6,088 $ 5,646 Reserve discount deducted $ — $ — $ — Gross unearned premiums: Commercial lines insurance $ 1,714 $ 1,665 $ 1,576 Personal lines insurance 797 757 725 Excess and surplus lines insurance 175 152 123 Other 273 213 91 Total $ 2,959 $ 2,787 $ 2,515 Earned premiums: Commercial lines insurance $ 3,476 $ 3,319 $ 3,218 Personal lines insurance 1,463 1,404 1,336 Excess and surplus lines insurance 325 278 234 Other 427 333 132 Total $ 5,691 $ 5,334 $ 4,920 Investment income, net of expenses: Commercial lines insurance $ — $ — $ — Personal lines insurance — — — Excess and surplus lines insurance — — — Other — — — Total (1) $ 431 $ 419 $ 401 Note to Schedule VI: (1) This segment information is not regularly allocated to segments and not reviewed by company management in making decisions about resources to be allocated to the segments or to assess their performance. Schedule VI (continued) Cincinnati Financial Corporation and Subsidiaries Supplementary Information Concerning Property Casualty Insurance Operations (Dollars in millions) Years ended December 31, 2020 2019 2018 Loss and loss expenses incurred related to current accident year: Commercial lines insurance $ 2,431 $ 2,222 $ 2,206 Personal lines insurance 995 1,012 960 Excess and surplus lines insurance 192 153 128 Other 350 213 96 Total $ 3,968 $ 3,600 $ 3,390 Loss and loss expenses incurred related to prior accident years: Commercial lines insurance $ (95) $ (192) $ (157) Personal lines insurance (18) (27) 13 Excess and surplus lines insurance 7 (11) (24) Other (25) (18) 1 Total $ (131) $ (248) $ (167) Amortization of deferred policy acquisition costs: Commercial lines insurance $ 664 $ 631 $ 608 Personal lines insurance 256 251 242 Excess and surplus lines insurance 51 47 39 Other 86 57 18 Total $ 1,057 $ 986 $ 907 Paid loss and loss expenses: Commercial lines insurance $ 1,969 $ 2,023 $ 1,816 Personal lines insurance 921 966 913 Excess and surplus lines insurance 112 90 74 Other 181 181 44 Total $ 3,183 $ 3,260 $ 2,847 Net written premiums: Commercial lines insurance $ 3,534 $ 3,410 $ 3,245 Personal lines insurance 1,503 1,435 1,378 Excess and surplus lines insurance 348 303 249 Other 479 368 158 Total $ 5,864 $ 5,516 $ 5,030 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Cincinnati Financial Corporation (CFC) operates through The Cincinnati Insurance Company and Cincinnati Global Underwriting Ltd. SM (Cincinnati Global) insurance subsidiaries and two complementary subsidiary companies. Cincinnati Global, our London-based global specialty underwriter, was acquired effective February 28, 2019. The Cincinnati Insurance Company leads our insurance group that also includes two subsidiaries: The Cincinnati Casualty Company and The Cincinnati Indemnity Company. This group markets a broad range of standard market commercial and personal policies. The group focuses on delivery of quality customer service to our select group of 1,848 independent insurance agencies with 2,578 reporting locations acros s 45 states . Other subsidiaries of The Cincinnati Insurance Company include: The Cincinnati Life Insurance Company, which markets life insurance and fixed annuities; and The Cincinnati Specialty Underwriters Insurance Company, which offers excess and surplus lines property casualty insurance products. The Cincinnati Insurance Company also conducts the business of our reinsurance assumed operations, Cincinnati Re ® . The two CFC complementary subsidiaries are CSU Producer Resources Inc., which provides insurance brokerage services to our independent agencies so their clients can access our excess and surplus lines insurance products, and CFC Investment Company, which offers commercial leasing and financing services to our agents, their clients and other customers. The World Health Organization declared the 2019 novel coronavirus (SARS-CoV-2 or COVID-19) outbreak a Public Health Emergency of International Concern on January 30, 2020, and a pandemic on March 11, 2020. The pandemic outbreak has caused an economic downturn on a global scale and although many businesses have resumed operations at some capacity, there is still uncertainty surrounding future government and private company restrictions. The pandemic, and unprecedented actions taken to contain the virus, has also continued to cause market disruption and volatility. |
Basis of Presentation | Basis of Presentation Our consolidated financial statements include the accounts of the parent and its wholly owned subsidiaries and are presented in conformity with accounting principles generally accepted in the United States of America (GAAP). The 2019 consolidated financial statements include Cincinnati Global's results for the period from February 28, 2019, through December 31, 2019. Foreign exchange rates related to Cincinnati Global's operations did not have a material impact to our consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. The preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Our actual results could differ from those estimates. |
Investments | Investments Our portfolio investments are primarily in publicly traded fixed-maturity and equity security investments. Fixed-maturity investments (taxable bonds, tax-exempt bonds, redeemable preferred equities and commercial mortgage- backed securities) classified as available for sale and equity investments (common and nonredeemable preferred equities) are recorded at fair value in the consolidated financial statements. Changes in fair value of fixed-maturity securities are reported in other comprehensive income while equity securities are reported in net income. The number of fixed-maturity securities with fair values below 100% of amortized cost can be expected to fluctuate as interest rates rise or fall. Because of our strong capital and long-term investment horizon, our general intent is to hold fixed-maturity investments until maturity, regardless of short-term fluctuations in fair values. An available for sale fixed maturity is impaired if the fair value of the security is below amortized cost. The impaired loss is charged to net income when we have the intent to sell the security or it is more likely than not we will be required to sell the security before recovery of the amortized cost. For impaired securities we intend to hold, an allowance for credit related losses is recorded in investment losses when the company determines a credit loss has been incurred based on certain factors such as adverse conditions, credit rating downgrades or failure of the issuer to make scheduled principal or interest payments. A credit loss is determined using a discounted cash flow analysis by comparing the present value of expected cash flows with the amortized cost basis, limited to the difference between fair value and amortized cost. Noncredit losses are recognized in other comprehensive income as a change in unrealized gains and losses on investments. As securities are sold, we recognize the gain or loss in income based on the trade date. Included within our other invested assets were $162 million and $164 million held on deposit at Lloyd's, $128 million and $71 million of private equity investments, $33 million and $32 million of life policy loans and $25 million and $29 million of real estate through direct property ownership and development projects in the United States at December 31, 2020 and 2019, respectively. Lloyd's deposits primarily consist of highly liquid short-term investment instruments. The private equity investments provide their financial statements to us and generally report investments on their balance sheets at fair value. We use the equity method of accounting for private equity and real estate development investments. Life policy loans are carried at the receivable value. Investment income, net of expenses, consists mainly of interest and dividends. We record interest on an accrual basis and record dividends at the ex-dividend date. We amortize premiums and discounts on fixed-maturity securities using the effective interest method over the expected life of the security. |
Fair Value Disclosures | Fair Value Disclosures Fair value is defined as the exit price or the amount that would be (1) received to sell an asset or (2) paid to transfer a liability in an orderly transaction between marketplace participants at the measurement date. When determining an exit price, we rely upon observable market data whenever possible. We primarily base fair value for investments in equity and fixed-maturity securities (including redeemable preferred stock and assets held in separate accounts) on quoted market prices or on prices from the company’s nationally recognized pricing vendors, outside resources that supply global securities pricing, dividend, corporate action and descriptive information to support fund pricing, securities operations, research and portfolio management. The company obtains and reviews the pricing services' valuation methodologies and related inputs and validates these prices by replicating a sample across each asset class using a discounted cash flow model. When a price is not available from these sources, as in the case of securities that are not publicly traded, we determine the fair value using various inputs including quotes from independent brokers. The fair value of investments not priced by the company’s nationally recognized pricing vendors is immaterial. For the purpose of Accounting Standards Codification (ASC) 825, Financial Instruments disclosure, we estimate the fair value of our long-term senior notes on market pricing of similar debt instruments that are actively trading. We estimate the fair value of our note payable on the year-end outstanding balance because it is short term and tied to a variable interest rate. We estimate the fair value of liabilities for investment contracts and annuities using discounted cash flow calculations across a wide range of economic interest rate scenarios with a provision for our nonperformance risk. We estimate the fair value for policyholder loans on insurance contracts using a discounted cash flow model. Determination of fair value for structured settlements assumes the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2020, to account for nonperformance risk. See Note 3, Fair Value Measurements, for further details. |
Cash And Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents are highly liquid instruments that include liquid debt instruments with original maturities of less than three months. These are carried at cost, which approximates fair value. |
Property Casualty Insurance | Property Casualty Insurance The consolidated property casualty companies actively write property casualty insurance through independent agencies i n 45 states. Our 10 largest states generated 53.3% and 54.8% of total earned premiums in 2020 and 2019, respectively. Ohio, our largest state, accounted for 14.8% and 15.1% of total earned premiums in 2020 and 2019, respectively. Illinois, Georgia, North Carolina, Pennsylvania and Indiana each accounted for between 4% and 6% of total earned premiums in 2020. Our largest single agency relationship accounted for approximately 1.3% of our total property casualty earned premiums in 2020. No aggregate agency relationship locations under a single ownership structure accounted for more than 4% of our total property casualty earned premiums in 2020. We record revenues for installment charges as fee revenues in the consolidated statements of income. Property casualty written premiums are deferred and recorded as earned premiums primarily on a pro rata basis over the terms of the policies. We record as unearned premiums the portion of written premiums that applies to unexpired policy terms. Expenses associated with successfully acquiring insurance policies – commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We assess recoverability of deferred acquisition costs at a level consistent with the way we acquire, service and manage insurance policies and measure profitability. We analyze our acquisition cost assumptions to reflect actual experience, and we evaluate potential premium deficiencies. Certain property casualty policies are not entered into policy underwriting systems as of the effective date of coverage. An estimate is recorded for these unprocessed written premiums. A large majority of the estimate is unearned and has no material impact on earned premiums. An allowance for credit losses on uncollectible property casualty premiums is updated and reviewed on a quarterly basis. At January 1, 2020, the allowance was $9 million. At December 31, 2020, the allowance increased to $19 million, of which a significant portion was due to consideration of pandemic-related factors. Other changes in the amount during 2020 were immaterial. |
Policyholder Dividends | Policyholder Dividends Certain workers’ compensation policies include the possibility of a policyholder earning a return of a portion of premium in the form of a policyholder dividend. The dividend generally is calculated by determining the profitability of a policy year along with the associated premium. We reserve for all probable future policyholder dividend payments. We record policyholder dividends as other underwriting expenses. |
Life Insurance | Life Insurance We offer several types of life insurance and we account for each according to the duration of the contract. Short-duration life and health contracts are written to cover claims that arise during a short, fixed term of coverage. We generally have the right to change the amount of premium charged or cancel the coverage at the end of each contract term. We record premiums for short-duration life and health contracts similarly to property casualty contracts. Long-duration contracts are written to provide coverage for an extended period of time. Traditional long-duration contracts require policyholders to pay scheduled gross premiums, generally not less frequently than annually, over the term of the coverage. Premiums for these contracts, such as whole life insurance are recognized as revenue when due. Some traditional long-duration contracts, such as ten-pay whole life insurance, have premium payment periods shorter than the period over which coverage is provided. For these contracts, the excess of premium over the amount required to pay expenses and benefits is recognized over the term of the coverage rather than over the premium payment period. We establish a liability for traditional long-duration contracts as we receive premiums. The amount of this liability is the present value of future expenses and benefits less the present value of future net premiums. Net premium is the portion of gross premium required to provide for all expenses and benefits. We estimate future expenses and benefits and net premium using assumptions for expected expenses, mortality, morbidity, withdrawal rates and investment income. We include a provision for deviation, meaning we allow for some uncertainty in making our assumptions. We establish our assumptions when the contract is issued, and we generally maintain those assumptions for the life of the contract. We use both our own experience and industry experience, adjusted for historical trends, in arriving at our assumptions for expected mortality, morbidity and withdrawal rates. We use our own experience and historical trends for setting our assumption for expected expenses. We base our assumption for expected investment income on our own experience, adjusted for current and future economic conditions. We capitalize acquisition costs for traditional long-duration contracts. We charge these capitalized costs associated with successfully acquiring traditional long-duration contract insurance policies in proportion to premium revenue recognized. We use the same assumptions used in establishing the liability for the contract. We update our acquisition cost assumptions periodically to reflect actual experience, and we evaluate our deferred acquisition costs for recoverability. Universal life contracts are long-duration contracts for which contractual provisions are not fixed, unlike whole life insurance. Universal life contracts allow policyholders to vary the amount of premium, within limits, without our consent. However, we may vary the mortality, expense charges and the interest crediting rate, within limits, used to accumulate policy values. We do not record universal life premiums as revenue. Instead we recognize as revenue the mortality charges, administration charges and surrender charges when received. Some of our universal life contracts assess administration charges in the early years of the contract that are compensation for services we will provide in the later years of the contract. These administration charges are deferred and are recognized over the period when we provide those future services. We maintain a policy reserve liability equal to the policyholder account value. There is no provision for adverse deviation. Some of our universal life policies contain no-lapse guarantee provisions. For these policies, we establish a reserve in addition to the account balance, based on expected no-lapse guarantee benefits and expected policy assessments. We capitalize acquisition costs associated with successfully acquiring universal life long-duration contracts. We charge these capitalized costs to expenses over the term of coverage of the contract in accordance with the recognition of gross profit from the contract or notional benefit base. When we charge deferred policy acquisition costs to expenses, we use assumptions based on our best estimates of long-term experience. We review and modify these assumptions on a regular basis. |
Separate Accounts | Separate Accounts We have issued universal life contracts with guaranteed minimum returns, referred to as bank-owned life insurance contracts (BOLIs). A BOLI is designed so the bank is the policy owner and the policy beneficiary. We legally segregate and record as separate accounts the assets and liabilities for some of our BOLIs, based on the specific contract provisions. We guarantee minimum investment returns, account values and death benefits for our separate account BOLIs. Our other BOLIs are general account products. We carry the assets of separate account BOLIs at fair value. The liabilities on separate account BOLIs primarily are the contract holders’ claims to the related assets and are carried at an amount equal to the contract holders’ account value. At December 31, 2020 and 2019, the current fair value of th e BOLI invested assets and cash exceeded the current fair value of the contract holders’ account value by approximately $99 million and $52 million, respectively. If the BOLI projected fair value were to fall below the value we guaranteed, a liability would be established with a corresponding charge to the company’s earnings. |
Reinsurance | Reinsurance The Cincinnati Insurance Company offers reinsurance assumed for casualty (predominantly domestic exposure), specialty and property (worldwide exposure). Treaties are written on a pro rata and excess of loss basis. We also continue to assume risk with limited exposure as a reinsurer for involuntary state pools. Written premium is recorded, net of contract specific retrocessions, on an ultimate estimate basis and primarily earned on a pro rata basis over the coverage period of the treaty. Expenses are recorded as per contract terms and deferred over the earning period of the premium. We establish known loss reserves when reported. We establish reserves for losses in excess of reported activity in the form of IBNR. Reserves are established using actuarial analysis, which includes models and methods traditionally used for the types of exposures written. We establish reserves for event specific occurrences using modeling data and company specific data when available. We enter into other reinsurance transactions to reduce risk and uncertainty by buying property casualty reinsurance and retrocessional reinsurance as well as life reinsurance. Reinsurance and retrocessional reinsurance contracts do not relieve us from our obligation to policyholders, but rather help protect our financial strength to perform that duty. All of these ceded reinsurance contracts transfer the economic risk of loss. Premiums that we cede are deferred and recorded as earned premiums on a pro rata basis over the terms of the contracts. We estimate loss amounts recoverable from our reinsurers based on the reinsurance policy terms. Historically, our claims with reinsurers have been paid. An allowance for credit losses on uncollectible reinsurance premiums and recoverable assets is updated and reviewed on a quarterly basis. The allowances, including changes in the amounts during 2020, were immaterial to our consolidated financial condition, results of operations and cash flows. |
Income Taxes | Income Taxes We calculate deferred income tax liabilities and assets using tax rates in effect when temporary differences in the consolidated financial statement income and taxable income are expected to reverse. We recognize deferred income taxes for numerous temporary differences between our taxable income and consolidated financial statement income and other changes in shareholders’ equity. Such temporary differences relate primarily to unrealized gains and losses on investments and differences in the recognition of deferred acquisition costs, unearned premiums, insurance reserves and basis differences in the carrying value of investments held. We charge deferred income taxes associated with balances that impact other comprehensive income, such as unrealized gains and losses of fixed-maturity investments, to shareholders’ equity in accumulated other comprehensive income (AOCI). We charge deferred taxes associated with other differences to income. See Note 11, Income Taxes, for further detail on our uncertain tax positions and other income tax items. Although no Internal Revenue Service (IRS) penalties currently are accrued, if incurred, they would be recognized as a component of income tax expense. |
Earnings per Share | Earnings per Share Net income per common share is based on the weighted average number of common shares outstanding during each of the respective years. We calculate net income per common share (diluted) assuming the exercise or conversion of share‑based awards using the treasury stock method. |
Land, Building And Equipment | Land, Building and Equipment We record land at cost, and record building and equipment at cost less accumulated depreciation. Equipment held under finance leases also is classified as property and equipment with the related lease obligations recorded as liabilities. We capitalize and amortize costs for internally developed computer software during the application development stage. These costs generally consist of external consulting, internal payroll and payroll-related costs. Our depreciation is based on estimated useful lives (ranging from three We monitor land, building and equipment and software assets for potential impairments. Indicators of potential impairments may include a significant decrease in the fair values of the assets, considerable cost overruns on projects, a change in legal factors or business climate or other factors that indicate that the carrying amount may not be recoverable or useful. There were no recorded land, building and equipment impairments for 2020, 2019 or 2018. |
Finance Receivables | Finance ReceivablesOur leasing subsidiary provides auto and equipment direct financing (leases and loans) to commercial and individual clients. We generally transfer ownership of the property to the client as the terms of the leases expire. Our lease contracts contain bargain purchase options. We account for these leases and loans as sales-type leases. We capitalize and amortize lease or loan origination costs over the life of the financing, using the effective interest method. These costs may include, but are not limited to finder fees, broker fees, filing fees and the cost of credit reports. We record income as other revenues over the financing term using the effective interest method in the consolidated statements of income. An allowance for credit losses on finance receivables is updated and reviewed on a quarterly basis. The allowance, including changes in the amount during 2020, was immaterial to our consolidated financial condition, results of operations and cash flows. |
Employee Benefit Pension Plan | Employee Benefit Pension Plan We sponsor a qualified defined benefit pension plan that was modified during 2008. We closed entry into the pension plan, and only participants 40 years of age or older could elect to remain in the plan. Our pension expenses are based on certain actuarial assumptions and also are composed of several components that are determined using the projected unit credit actuarial cost method. Refer to Note 13, Employee Retirement Benefits, for more information about our defined benefit pension plan. |
Stock-Based Compensation | Share-Based Compensation We grant qualified and nonqualified share-based compensation under authorized plans. The stock options generally vest on a graded scale over three years following the date of grant and are exercisable over 10-year periods. We grant service-based restricted stock units that cliff vest three years after the date of grant as well as service-based restricted stock units that vest ratably over the three |
Goodwill and Intangible Assets, Policy | Goodwill and Intangible Assets We recognize goodwill and intangible assets generated through acquisitions within other assets in the consolidated balance sheets. Goodwill arises when the fair value of consideration transferred exceeds the fair value of the net identifiable assets acquired at the acquisition date. Goodwill and intangible assets with an indefinite life are not amortized. Intangible assets with a definite life are amortized on a straight-line basis over the estimated useful lives as follows: broker relationships, 15 years; internally developed technology, five years; value of business acquired, over the remaining coverage period of the underlying insurance contracts, which expired during 2020. We test for impairments on an annual basis or more frequently if events or circumstances indicate that the asset might be impaired. The company performed its annual impairment test on goodwill and intangibles on September 30, which did not result in the recognition of an impairment loss. The company held goodwill of $30 million and intangible assets with an indefinite life of $31 million at December 31, 2020 and 2019, respectively. |
Subsequent Events | Subsequent EventsThere were no subsequent events requiring adjustment to the consolidated financial statements or disclosure. |
Accounting Updates | Adopted Accounting Updates ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as well as additional implementation related ASU's in 2018, 2019 and 2020. These ASU’s amend previous guidance on the impairment of financial instruments by adding an impairment model that allows an entity to recognize expected credit losses as an allowance rather than impairing as they are incurred. The new guidance is intended to reduce the complexity of credit impairment models and result in a more timely recognition of expected credit losses. The standards require the company to consider all relevant information at the time of estimating the expected credit loss, including past events, the current environment, and reasonable and supportable forecasts over the life of the asset. These ASU's also eliminated the other-than-temporary impairment model for available for sale fixed-maturity securities by requiring that credit-related impairments be recognized through an allowance account. Changes in the allowance account are recorded in the period of change as a credit loss expense or reversal of credit loss expense. The measurement of credit losses is not impacted, except that credit losses recognized are limited to the amount by which fair value is below amortized cost and that the length of time that a security has been below amortized cost cannot be considered. These ASU's retain the guidance requiring that impaired securities intended to be sold have their amortized cost basis written down to fair value through net income. The company adopted these ASU's on January 1, 2020, and applied them on a modified retrospective basis. As a result of this adoption, an after-tax cumulative effect decrease of $2 million was made to retained earnings representing an increase to the overall valuation allowances for financial instruments measured at amortized cost. These ASU's were applied to available for sale fixed-maturity securities prospectively with no adjustments to the amortized cost basis of securities for which an other-than-temporary impairment had been previously recognized. The company has elected not to measure expected credit losses for accrued interest receivables related to its finance receivables and fixed-maturity securities. Pending Accounting Updates ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB issued ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . ASU 2018-12 is intended to improve the timeliness of recognizing changes in the liability for future policy benefits and modify the rate used to discount future cash flows. The ASU will simplify and improve the accounting for certain market-based options or guarantees associated with deposit or account balance contracts and simplify amortization of deferred acquisition costs while improving and expanding required disclosures. In November 2020, the FASB issued an ASU that delayed the effective date of ASU 2018-12 to interim and annual reporting periods beginning after December 15, 2022. These ASU's have not yet been adopted. Management is currently evaluating the impact on our company's consolidated financial condition, results of operations and cash flows. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Analysis Of Cost Or Amortized Cost, Gross Unrealized Gains And Losses And Fair Value for Investments | The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity securities: (Dollars in millions) Amortized Gross unrealized Fair At December 31, 2020 gains losses Fixed-maturity securities: Corporate $ 6,281 $ 621 $ 7 $ 6,895 States, municipalities and political subdivisions 4,604 395 2 4,997 Commercial mortgage-backed 271 15 1 285 United States government 115 5 — 120 Foreign government 29 — — 29 Government-sponsored enterprises 12 — — 12 Total $ 11,312 $ 1,036 $ 10 $ 12,338 At December 31, 2019 Fixed-maturity securities: Corporate $ 6,074 $ 332 $ 5 $ 6,401 States, municipalities and political subdivisions 4,477 252 1 4,728 Commercial mortgage-backed 290 11 — 301 United States government 102 2 — 104 Foreign government 28 — — 28 Government-sponsored enterprises 137 — 1 136 Total $ 11,108 $ 597 $ 7 $ 11,698 |
Fair Values And Unrealized Losses by Investment Category And By The Duration Of The Securities' Continuous Unrealized Loss Position | The table below provides fair values and unrealized losses by investment category and by the duration of the securities’ continuous unrealized loss positions: (Dollars in millions) Less than 12 months 12 months or more Total At December 31, 2020 Fair Unrealized Fair Unrealized Fair Unrealized Fixed-maturity securities: Corporate $ 330 $ 5 $ 46 $ 2 $ 376 $ 7 States, municipalities and political subdivisions 31 2 2 — 33 2 Commercial mortgage-backed 23 1 6 — 29 1 United States government 12 — — — 12 — Foreign government 10 — — — 10 — Total $ 406 $ 8 $ 54 $ 2 $ 460 $ 10 At December 31, 2019 Fixed-maturity securities: Corporate $ 199 $ 2 $ 118 $ 3 $ 317 $ 5 States, municipalities and political subdivisions 98 1 10 — 108 1 Commercial mortgage-backed 6 — — — 6 — United States government — — 4 — 4 — Foreign government 11 — — — 11 — Government-sponsored enterprises 26 1 51 — 77 1 Total $ 340 $ 4 $ 183 $ 3 $ 523 $ 7 |
Contractual Maturity Dates For Fixed-Maturity And Short-Term Investments | Contractual maturity dates for fixed-maturity investments were: (Dollars in millions) Amortized cost Fair % of fair value At December 31, 2020 Maturity dates: Due in one year or less $ 581 $ 589 4.8 % Due after one year through five years 3,450 3,697 30.0 Due after five years through ten years 3,789 4,178 33.9 Due after ten years 3,492 3,874 31.3 Total $ 11,312 $ 12,338 100.0 % |
Investment Income, Realized Investment Gains And Losses And Change In Unrealized Investment Gains And Losses | The following table provides investment income and investment gains and losses: (Dollars in millions) Years ended December 31, 2020 2019 2018 Investment income: Interest $ 455 $ 446 $ 445 Dividends 220 201 181 Other 8 12 5 Total 683 659 631 Less investment expenses 13 13 12 Total $ 670 $ 646 $ 619 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ 79 $ 26 $ 9 Unrealized gains and losses on securities still held, net 841 1,626 (404) Subtotal 920 1,652 (395) Fixed-maturity securities: Gross realized gains 16 13 12 Gross realized losses (3) (3) (2) Write-down of impaired securities (78) (9) (5) Subtotal (65) 1 5 Other 10 (3) (12) Total $ 865 $ 1,650 $ (402) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Hierarchy for Assets Measured at Fair Value on a Recurring Basis | The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2020 and 2019. We do not have any liabilities carried at fair value. There were no transfers between Level 1 and Level 2. (Dollars in millions) Quoted prices in Significant At December 31, 2020 Significant other Total Fixed maturities, available for sale: Corporate $ — $ 6,895 $ — $ 6,895 States, municipalities and political subdivisions — 4,997 — 4,997 Commercial mortgage-backed — 285 — 285 United States Government 120 — — 120 Foreign government — 29 — 29 Government-sponsored enterprises — 12 — 12 Subtotal 120 12,218 — 12,338 Common equities 8,541 — — 8,541 Nonredeemable preferred equities — 315 — 315 Separate accounts taxable fixed maturities — 903 — 903 Top Hat savings plan mutual funds and common 51 — — 51 Total $ 8,712 $ 13,436 $ — $ 22,148 At December 31, 2019 Fixed maturities, available for sale: Corporate $ — $ 6,401 $ — $ 6,401 States, municipalities and political subdivisions — 4,728 — 4,728 Commercial mortgage-backed — 301 — 301 United States Government 104 — — 104 Foreign government — 28 — 28 Government-sponsored enterprises — 136 — 136 Subtotal 104 11,594 — 11,698 Common equities 7,518 — — 7,518 Nonredeemable preferred equities — 234 — 234 Separate accounts taxable fixed maturities — 855 — 855 Top Hat savings plan mutual funds and common 45 — — 45 Total $ 7,667 $ 12,683 $ — $ 20,350 |
Fair Value of Life Policy Loans | The following table shows the fair value of our life policy loans, included in other invested assets: (Dollars in millions) Quoted prices in Significant other Significant Total At December 31, 2020 Life policy loans $ — $ — $ 49 $ 49 At December 31, 2019 Life policy loans $ — $ — $ 44 $ 44 |
Deferred Annuities and Structured Settlements | |
Fair Values of Deferred Annuities, Structured Settlements and Other Items | The following table shows fair value of our deferred annuities and structured settlements included in life policy and investment contract reserves: (Dollars in millions) Quoted prices in Significant other Significant Total At December 31, 2020 Deferred annuities $ — $ — $ 836 $ 836 Structured settlements — 227 — 227 Total $ — $ 227 $ 836 $ 1,063 At December 31, 2019 Deferred annuities $ — $ — $ 770 $ 770 Structured settlements — 212 — 212 Total $ — $ 212 $ 770 $ 982 |
Debt | |
Fair Values of Deferred Annuities, Structured Settlements and Other Items | The following table shows fair values of our note payable and long-term debt: (Dollars in millions) Quoted prices in Significant other Significant Total At December 31, 2020 Note payable $ — $ 54 $ — $ 54 6.900% senior debentures, due 2028 — 35 — 35 6.920% senior debentures, due 2028 — 515 — 515 6.125% senior notes, due 2034 — 522 — 522 Total $ — $ 1,126 $ — $ 1,126 At December 31, 2019 Note payable $ — $ 39 $ — $ 39 6.900% senior debentures, due 2028 — 34 — 34 6.920% senior debentures, due 2028 — 506 — 506 6.125% senior notes, due 2034 — 512 — 512 Total $ — $ 1,091 $ — $ 1,091 |
Property Casualty Loss and Lo_2
Property Casualty Loss and Loss Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Consolidated Property Casualty Loss And Loss Expense Reserves | This table summarizes activity for our consolidated property casualty loss and loss expense reserves: (Dollars in millions) Years ended December 31, 2020 2019 2018 Gross loss and loss expense reserves, January 1 $ 6,088 $ 5,646 $ 5,219 Less reinsurance recoverable 342 238 187 Net loss and loss expense reserves, January 1 5,746 5,408 5,032 Net loss and loss expense reserves related to acquisition of Cincinnati Global at — 246 — Net incurred loss and loss expenses related to: Current accident year 3,968 3,600 3,390 Prior accident years (131) (248) (167) Total incurred 3,837 3,352 3,223 Net paid loss and loss expenses related to: Current accident year 1,493 1,462 1,391 Prior accident years 1,690 1,798 1,456 Total paid 3,183 3,260 2,847 Net loss and loss expense reserves, December 31 6,400 5,746 5,408 Plus reinsurance recoverable 277 342 238 Gross loss and loss expense reserves, December 31 $ 6,677 $ 6,088 $ 5,646 |
Reconciliation of Property casualty Incurred Losses and ALAE and Paid Losses and ALAE Development Information | The following table provides a reconciliation of the property casualty incurred losses and allocated loss adjustment expenses (ALAE) development and paid losses and ALAE development information at December 31, 2020. (Dollars in millions) Cumulative incurred losses Cumulative paid losses and ALAE as reported within the triangles, Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance Total liabilities for loss and ALAE, net of reinsurance Reinsurance recoverable on unpaid losses Total liabilities for gross loss and loss expense reserves Commercial casualty $ 5,179 $ 3,012 $ 91 $ 2,258 $ 24 $ 2,282 Workers' compensation 1,990 1,357 308 941 61 1,002 Commercial auto 2,235 1,581 26 680 5 685 Commercial property 3,158 2,725 15 448 66 514 Personal auto 1,860 1,610 10 260 32 292 Homeowner 1,996 1,781 4 219 18 237 Excess and surplus 836 430 1 407 16 423 Other lines 959 Total liabilities for loss and ALAE reserves 6,394 Unallocated loss adjustment expense reserves 283 Gross loss and loss expense reserves $ 6,677 |
Schedule of Incurred and Paid Losses and ALAE Development by Accident Year | The following table shows the commercial casualty incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2020 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of Accident Unaudited Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 466 $ 404 $ 377 $ 377 $ 375 $ 380 $ 366 $ 365 $ 368 $ 361 $ — 19 2012 466 414 417 394 394 404 399 397 397 11 18 2013 448 443 431 416 413 407 391 386 22 20 2014 503 496 479 476 479 465 469 27 21 2015 533 526 529 516 508 502 54 21 2016 563 574 557 555 554 89 21 2017 610 597 577 571 124 21 2018 650 641 622 181 22 2019 672 643 293 19 2020 674 472 11 Total $ 5,179 Cumulative paid losses and ALAE, net of reinsurance 2011 $ 27 $ 93 $ 149 $ 227 $ 266 $ 298 $ 315 $ 325 $ 337 $ 342 2012 27 88 170 232 288 330 346 364 374 2013 35 90 159 232 286 312 337 348 2014 34 97 172 287 338 390 409 2015 38 108 200 287 362 404 2016 46 126 228 331 395 2017 48 122 234 320 2018 44 148 253 2019 39 134 2020 33 Total 3,012 All outstanding liabilities before 2011, net of reinsurance 91 Liabilities for loss and ALAE, net of reinsurance $ 2,258 The following table shows the workers’ compensation incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2020 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of Accident Unaudited Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 284 $ 251 $ 246 $ 242 $ 239 $ 236 $ 231 $ 229 $ 228 $ 228 $ 17 24 2012 265 245 234 220 213 211 209 208 207 19 21 2013 264 246 221 212 208 205 202 201 12 20 2014 261 233 214 203 201 198 197 13 19 2015 246 220 208 195 179 173 26 17 2016 230 218 206 188 183 27 16 2017 218 208 190 183 46 15 2018 222 207 199 52 15 2019 224 215 65 14 2020 204 100 10 Total $ 1,990 Cumulative paid losses and ALAE, net of reinsurance 2011 $ 65 $ 131 $ 161 $ 177 $ 186 $ 190 $ 192 $ 195 $ 197 $ 198 2012 62 121 147 162 171 175 178 180 182 2013 61 119 144 157 164 168 170 174 2014 56 110 134 148 157 162 165 2015 47 93 115 129 134 137 2016 46 97 119 131 141 2017 45 88 106 114 2018 48 95 115 2019 49 94 2020 37 Total 1,357 All outstanding liabilities before 2011, net of reinsurance 308 Liabilities for loss and ALAE, net of reinsurance $ 941 The following table shows the commercial auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2020 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2016 2017 2018 2019 2020 2016 $ 417 $ 430 $ 450 $ 463 $ 474 $ 5 53 2017 451 441 443 444 13 51 2018 453 442 442 36 49 2019 452 451 73 46 2020 424 164 33 Total $ 2,235 Cumulative paid losses and ALAE, net of reinsurance 2016 $ 184 $ 273 $ 350 $ 408 $ 441 2017 187 266 334 381 2018 184 266 337 2019 183 268 2020 154 Total 1,581 All outstanding liabilities before 2016, net of reinsurance 26 Liabilities for loss and ALAE, net of reinsurance $ 680 The following table shows the commercial property incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2020 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2016 2017 2018 2019 2020 2016 $ 590 $ 551 $ 541 $ 545 $ 542 $ 2 17 2017 587 560 556 565 3 18 2018 630 603 590 7 18 2019 621 606 6 17 2020 855 141 22 Total $ 3,158 Cumulative paid losses and ALAE, net of reinsurance 2016 $ 358 $ 504 $ 528 $ 539 $ 539 2017 395 522 547 560 2018 386 559 576 2019 413 561 2020 489 Total 2,725 All outstanding liabilities before 2016, net of reinsurance 15 Liabilities for loss and ALAE, net of reinsurance $ 448 The following table shows the personal auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2020 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2016 2017 2018 2019 2020 2016 $ 383 $ 384 $ 386 $ 384 $ 384 $ 1 110 2017 412 394 391 393 1 109 2018 424 398 395 1 111 2019 399 383 14 102 2020 305 62 67 Total $ 1,860 Cumulative paid losses and ALAE, net of reinsurance 2016 $ 243 $ 316 $ 351 $ 370 $ 378 2017 256 324 358 374 2018 262 327 358 2019 250 314 2020 186 Total 1,610 All outstanding liabilities before 2016, net of reinsurance 10 Liabilities for loss and ALAE, net of reinsurance $ 260 The following table shows the homeowner incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2020 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2016 2017 2018 2019 2020 2016 $ 315 $ 304 $ 303 $ 302 $ 304 $ — 23 2017 356 383 385 387 — 26 2018 370 386 387 5 24 2019 432 421 10 22 2020 497 54 21 Total $ 1,996 Cumulative paid losses and ALAE, net of reinsurance 2016 $ 208 $ 283 $ 295 $ 299 $ 302 2017 277 356 378 384 2018 268 368 378 2019 303 391 2020 326 Total 1,781 All outstanding liabilities before 2016, net of reinsurance 4 Liabilities for loss and ALAE, net of reinsurance $ 219 The following table shows the excess and surplus lines incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2020 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 48 $ 47 $ 44 $ 38 $ 36 $ 35 $ 35 $ 34 $ 34 $ 34 $ — 1 2012 67 56 49 40 37 36 35 36 35 — 1 2013 74 64 54 45 42 41 41 41 2 2 2014 95 82 75 64 60 59 59 5 2 2015 96 81 73 67 65 66 6 2 2016 93 87 84 82 90 13 3 2017 104 95 95 94 15 3 2018 116 109 110 29 3 2019 137 135 50 3 2020 172 $ 105 2 Total $ 836 Cumulative paid losses and ALAE, net of reinsurance 2011 $ 8 $ 14 $ 23 $ 27 $ 30 $ 32 $ 34 $ 33 $ 33 $ 33 2012 9 15 19 25 29 31 32 33 34 2013 7 12 20 27 32 34 37 39 2014 9 17 27 37 43 48 51 2015 8 19 29 41 51 54 2016 10 21 39 51 62 2017 11 23 41 57 2018 11 26 50 2019 13 34 2020 16 Total 430 All outstanding liabilities before 2011, net of reinsurance 1 Liabilities for loss and ALAE, net of reinsurance $ 407 |
Schedule of Average Annual Percentage Payout of Incurred Claims | The following table shows the average annual percentage payout of incurred losses for the commercial casualty line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 7.3% 14.9% 17.9% 18.8% 12.7% 9.1% 4.8% 3.5% 3.0% 1.7% The following table shows the average annual percentage payout of incurred losses for the workers’ compensation line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 25.9% 26.3% 11.9% 6.7% 4.1% 2.0% 1.4% 1.2% 1.1% 0.5% The following table shows the average annual percentage payout of incurred losses for the commercial auto line of business. Commercial auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 39.9% 18.6% 15.8% 11.5% 7.0% The following table shows the average annual percentage payout of incurred losses for the commercial property line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 65.3% 25.8% 3.9% 2.1% 0.1% The following table shows the average annual percentage payout of incurred losses for the personal auto line of business. Personal auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 64.2% 17.3% 8.6% 4.6% 2.0% The following table shows the average annual percentage payout of incurred losses for the homeowner line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 69.3% 23.0% 4.1% 1.4% 0.8% The following table shows the average annual percentage payout of incurred losses for the excess and surplus lines insurance segment. Excess and surplus lines consist mostly of commercial casualty and commercial property coverages. A majority of the incurred losses paid after year 2 are the result of commercial casualty losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 14.6% 14.4% 19.2% 15.4% 11.7% 6.9% 3.9% 2.2% 1.0% 0.2% |
Life Policy And Investment Co_2
Life Policy And Investment Contract Reserves (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Liability for Future Policy Benefit, before Reinsurance [Abstract] | |
Reserve In Addition To The Account Balance, Based on Expected No-Lapse Guarantee Benefits And Expected Policy Assessments | This table summarizes our life policy and investment contract reserves: (Dollars in millions) At December 31, 2020 2019 Life policy reserves: Ordinary/traditional life $ 1,301 $ 1,226 Other 52 50 Subtotal 1,353 1,276 Investment contract reserves: Deferred annuities 761 760 Universal life 647 640 Structured settlements 145 151 Other 9 8 Subtotal 1,562 1,559 Total life policy and investment contract reserves $ 2,915 $ 2,835 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs [Abstract] | |
Deferred Policy Acquisition Costs And Asset Reconciliation, Including the Amortized Deferred Policy Acquisition Costs | The table below shows the deferred policy acquisition costs and asset reconciliation: (Dollars in millions) Years ended December 31, 2020 2019 2018 Property casualty: Deferred policy acquisition costs asset, January 1 $ 512 $ 464 $ 438 Capitalized deferred policy acquisition costs 1,087 1,034 933 Amortized deferred policy acquisition costs (1,057) (986) (907) Deferred policy acquisition costs asset, December 31 $ 542 $ 512 $ 464 Life: Deferred policy acquisition costs asset, January 1 $ 262 $ 274 $ 232 Capitalized deferred policy acquisition costs 58 61 60 Amortized deferred policy acquisition costs (49) (48) (39) Shadow deferred policy acquisition costs (8) (25) 21 Deferred policy acquisition costs asset, December 31 $ 263 $ 262 $ 274 Consolidated: Deferred policy acquisition costs asset, January 1 $ 774 $ 738 $ 670 Capitalized deferred policy acquisition costs 1,145 1,095 993 Amortized deferred policy acquisition costs (1,106) (1,034) (946) Shadow deferred policy acquisition costs (8) (25) 21 Deferred policy acquisition costs asset, December 31 $ 805 $ 774 $ 738 |
Long-Term Debt And Lease Obli_2
Long-Term Debt And Lease Obligation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Debt and Lease Obligation [Abstract] | |
Book Value And Principal Amounts Of Long-Term Debt | This table summarizes the principal amounts of our long-term debt excluding unamortized discounts, none of which are encumbered by rating triggers: (Dollars in millions) Book value Principal amount Interest rate Year of At December 31, At December 31, 2020 2019 2020 2019 6.900% 1998 Senior debentures, due 2028 $ 27 $ 27 $ 28 $ 28 6.920% 2005 Senior debentures, due 2028 391 391 391 391 6.125% 2004 Senior notes, due 2034 370 370 374 374 Total $ 788 $ 788 $ 793 $ 793 |
Capital Lease Payments Over Next Five Years | interest for finance and operating leases: (Dollars in millions) Years ended December 31, 2021 2022 2023 2024 2025 2026 and thereafter Finance lease obligations $ 15 $ 12 $ 10 $ 6 $ 4 $ 2 Operating lease obligations 2 2 2 2 1 2 Total lease obligations $ 17 $ 14 $ 12 $ 8 $ 5 $ 4 |
Other Operating and Finance Lease Disclosure [Table Text Block] | The following table provides lease cost and other information for the year ended December 31, 2020 and 2019: (Dollars in millions) 2020 2019 Lease cost: Finance lease cost $ 15 $ 9 Operating lease cost 4 4 Total lease cost $ 19 $ 13 Other information finance leases: Finance cash outflows $ 15 $ 15 Weighted average discount rate 2.62 % 2.96 % Weighted average remaining lease term in years 3.67 3.65 Other information operating leases: Operating cash outflows $ 8 $ 8 Weighted average discount rate 3.65 % 3.69 % Weighted average remaining lease term in years 4.84 4.71 |
Shareholders' Equity And Divi_2
Shareholders' Equity And Dividend Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders Equity And Dividend Restrictions [Abstract] | |
Change In AOCI Includes Changes In Unrealized Gains And Losses On Investments And Pension Obligations | The changes from the beginning of year to the end of year are the result of changes to other comprehensive income or loss (OCI). (Dollars in millions) 2020 2019 2018 Before Income Net Before Income Net Before Income Net Investments: AOCI, January 1 $ 590 $ 123 $ 467 $ 46 $ 9 $ 37 $ 3,540 $ 733 $ 2,807 Cumulative effect of change in accounting for equity securities as of January 1, 2018 — — — — — — (3,155) (652) (2,503) Adjusted AOCI, beginning of period 590 123 467 46 9 37 385 81 304 OCI before investment gains and losses, net, recognized in net income 371 78 293 545 115 430 (334) (71) (263) Investment gains and losses, net, recognized in net income 65 14 51 (1) (1) — (5) (1) (4) OCI 436 92 344 544 114 430 (339) (72) (267) AOCI, December 31 $ 1,026 $ 215 $ 811 $ 590 $ 123 $ 467 $ 46 $ 9 $ 37 Pension obligations: AOCI, January 1 $ (9) $ — $ (9) $ (16) $ (2) $ (14) $ (12) $ (1) $ (11) OCI excluding amortization recognized in net income (35) (7) (28) 6 2 4 (5) (1) (4) Amortization recognized in net income 3 — 3 1 — 1 1 — 1 OCI (32) (7) (25) 7 2 5 (4) (1) (3) AOCI, December 31 $ (41) $ (7) $ (34) $ (9) $ — $ (9) $ (16) $ (2) $ (14) Life deferred acquisition costs, life policy reserves and other: AOCI, January 1 $ (13) $ (3) $ (10) $ (1) $ — $ (1) $ (10) $ (2) $ (8) OCI before investment gains and losses, net, recognized in net income 3 1 2 (15) (3) (12) (3) (1) (2) Investment gains and losses, net, recognized in net income — — — 3 — 3 12 3 9 OCI 3 1 2 (12) (3) (9) 9 2 7 AOCI, December 31 $ (10) $ (2) $ (8) $ (13) $ (3) $ (10) $ (1) $ — $ (1) Summary of AOCI: AOCI, January 1 $ 568 $ 120 $ 448 $ 29 $ 7 $ 22 $ 3,518 $ 730 $ 2,788 Cumulative effect of change in accounting for equity securities as of January 1, 2018 — — — — — — (3,155) (652) (2,503) Adjusted AOCI, beginning of period 568 120 448 29 7 22 363 78 285 Investments OCI 436 92 344 544 114 430 (339) (72) (267) Pension obligations OCI (32) (7) (25) 7 2 5 (4) (1) (3) Life deferred acquisition costs, life policy reserves and other OCI 3 1 2 (12) (3) (9) 9 2 7 Total OCI 407 86 321 539 113 426 (334) (71) (263) AOCI, December 31 $ 975 $ 206 $ 769 $ 568 $ 120 $ 448 $ 29 $ 7 $ 22 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
Property Casualty Insurance Assumed And Ceded Business | The table below summarizes our consolidated property casualty insurance net written premiums, earned premiums and incurred loss and loss expenses: (Dollars in millions) Years ended December 31, 2020 2019 2018 Direct written premiums $ 5,756 $ 5,477 $ 5,018 Assumed written premiums 335 244 173 Ceded written premiums (227) (205) (161) Net written premiums $ 5,864 $ 5,516 $ 5,030 Direct earned premiums $ 5,623 $ 5,340 $ 4,931 Assumed earned premiums 285 199 149 Ceded earned premiums (217) (205) (160) Earned premiums $ 5,691 $ 5,334 $ 4,920 Direct incurred loss and loss expenses $ 3,699 $ 3,402 $ 3,188 Assumed incurred loss and loss expenses 184 117 125 Ceded incurred loss and loss expenses (46) (167) (90) Incurred loss and loss expenses $ 3,837 $ 3,352 $ 3,223 |
Life Insurance Assumed And Ceded Business | The table below summarizes our consolidated life insurance earned premiums and contract holders' benefits incurred: (Dollars in millions) Years ended December 31, 2020 2019 2018 Direct earned premiums $ 362 $ 341 $ 320 Ceded earned premiums (73) (71) (70) Earned premiums $ 289 $ 270 $ 250 Direct contract holders' benefits incurred $ 359 $ 359 $ 328 Ceded contract holders' benefits incurred (62) (73) (61) Contract holders' benefits incurred $ 297 $ 286 $ 267 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components Of Deferred Tax Assets And Liabilities | The significant components of deferred tax assets and liabilities included in the consolidated balance sheets at December 31 were as follows: (Dollars in millions) At December 31, 2020 2019 Deferred tax assets: Unearned premiums $ 119 $ 113 Loss and loss expense reserves 81 66 Deferred international earnings 45 51 Net operating loss on international earnings 26 4 Other 41 39 Deferred tax assets before valuation allowance 312 273 Valuation allowance for international operations 56 41 Deferred tax assets net of valuation allowance 256 232 Deferred tax liabilities: Investment gains and other, net 1,240 995 Deferred acquisition costs 143 139 Life policy reserves 121 120 Investments 13 23 Other 38 34 Total gross deferred tax liabilities 1,555 1,311 Net deferred income tax liability $ 1,299 $ 1,079 |
Schedule of Income before Income Tax | For financial reporting purposes, income (loss) before income taxes includes the following components: (Dollars in millions) For the years ended December 31, 2020 2019 2018 United States $ 1,521 $ 2,440 $ 251 International (22) 32 — Total income before income taxes $ 1,499 $ 2,472 $ 251 |
Schedule of The Provision (Benefit) of Income Taxes | The provision (benefit) for income taxes consists of: (Dollars in millions) For the years ended December 31, 2020 2019 2018 Provision (benefit) for income taxes: Current – United States federal $ 147 $ 137 $ 11 International — (5) — Total current 147 132 11 Deferred – United States federal 136 338 (47) International — 5 — Total deferred 136 343 (47) Total provision (benefit) for income taxes $ 283 $ 475 $ (36) |
Differences Between The 35 Percent Statutory Income Tax Rate And Effective Income Tax Rate | The differences between the 21% statutory federal income tax rate and our effective income tax rate were as follows: (Dollars in millions) Years ended December 31, 2020 2019 2018 Tax at statutory rate: $ 315 21.0 % $ 519 21.0 % $ 53 21.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds (20) (1.3) (19) (0.8) (20) (8.0) Dividend received exclusion (17) (1.1) (16) (0.6) (15) (6.0) Tax accounting method changes — — — — (50) (19.9) Other 5 0.3 (9) (0.4) (4) (1.4) Provision (benefit) for income taxes $ 283 18.9 % $ 475 19.2 % $ (36) (14.3) % |
Reconciliation of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits. (Dollars in millions) Years ended December 31, 2020 2019 2018 Gross unrecognized tax benefits, January 1 $ 34 $ 34 $ — Gross increase in prior year positions — — — Gross decrease in prior year positions — — — Gross increase in current year positions — — 34 Settlements with tax authorities — — — Lapse of statute of limitations — — — Gross unrecognized tax benefits, December 31 $ 34 $ 34 $ 34 |
Reconciliation of Cincinnati Global Valuation Allowance | The following is a tabular reconciliation of the total amounts of our Cincinnati Global valuation allowance. (Dollars in millions) Years ended December 31, 2020 2019 Valuation allowance, January 1 $ 41 $ — Acquisition accounting amount — 55 Current year operations 15 (14) Valuation allowance, December 31 $ 56 $ 41 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculations For Basic And Diluted Earnings Per Share | The table shows calculations for basic and diluted earnings per share: (In millions, except per share data) Years ended December 31, 2020 2019 2018 Numerator: Net income—basic and diluted $ 1,216 $ 1,997 $ 287 Denominator: Basic weighted-average common shares outstanding 161.2 163.2 163.2 Effect of share-based awards: Stock options 0.7 1.2 0.8 Nonvested shares 0.5 0.7 0.5 Diluted weighted-average shares 162.4 165.1 164.5 Earnings per share: Basic $ 7.55 $ 12.24 $ 1.76 Diluted 7.49 12.10 1.75 Number of anti-dilutive share-based awards 1.4 — 1.3 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Weighted-Average Assumptions Used for Benefit Obligations | This is a summary of the weighted-average assumptions used to determine our benefit obligations at December 31 for the plans: Qualified Pension Plan SERP 2020 2019 2020 2019 Discount rate 2.68 % 3.40 % 2.52 % 3.33 % Rate of compensation increase 2.25-3.25 2.25-3.25 2.25-3.25 2.25-3.25 |
Assumptions of Net Benefit Costs | This is a summary of the weighted-average assumptions used to determine our net periodic benefit cost for the plans: Qualified Pension Plan SERP 2020 2019 2018 2020 2019 2018 Discount rate 3.40 % 4.34 % 3.73 % 3.33 % 4.25 % 3.61 % Expected return on plan assets 7.00 7.00 7.25 n/a n/a n/a Rate of compensation increase 2.25-3.25 2.25-3.25 2.75-3.25 2.25-3.25 2.25-3.25 2.75-3.25 |
Benefit Obligation Activity Using An Actuarial Measurement Date For Qualified Plan And SERP | Benefit obligation activity using an actuarial measurement date for our qualified pension plan and SERP at December 31 follows: (Dollars in millions) At December 31, 2020 2019 Change in projected benefit obligation: Benefit obligation, January 1 $ 350 $ 318 Service cost 9 8 Interest cost 12 13 Actuarial loss 51 45 Benefits paid (35) (34) Projected benefit obligation, December 31 $ 387 $ 350 Change in plan assets: Fair value of plan assets, January 1 $ 354 $ 318 Actual return on plan assets 34 70 Employer contribution 4 — Benefits paid (35) (34) Fair value of plan assets, December 31 $ 357 $ 354 Funded status, December 31 $ (30) $ 4 Accumulated benefit obligation $ 360 $ 327 |
Reconciliation Of The Funded Status For Qualified Plan And SERP | A reconciliation follows of the funded status for our qualified plan and SERP at the end of the measurement period to the amounts recognized in the consolidated balance sheets at December 31: (Dollars in millions) At December 31, 2020 2019 Pension amounts recognized in the consolidated balance sheets: Other (liability) assets $ (30) $ 4 Total $ (30) $ 4 Pension amounts recognized in accumulated other comprehensive income: Net actuarial loss $ 41 $ 9 Total $ 41 $ 9 |
Components Of Net Periodic Benefit Cost As Well As Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Income For Qualified Plan And SERP | Below are the components of our net periodic benefit cost, as well as other changes in plan assets and benefit obligations recognized in other comprehensive income for our qualified plan and SERP at December 31: (Dollars in millions) Years ended December 31, 2020 2019 2018 Net periodic benefit cost: Service cost $ 9 $ 8 $ 11 Non-service costs (benefit): Interest cost 12 13 13 Expected return on plan assets (21) (20) (22) Amortization of actuarial loss and prior service cost 3 1 1 Other 3 1 2 Net periodic benefit cost $ 6 $ 3 $ 5 Other changes in plan assets and benefit obligations recognized in other Current year actuarial (gain) loss $ 38 $ (5) $ 7 Amortization of actuarial loss (6) (2) (3) Total recognized in other comprehensive (income) loss $ 32 $ (7) $ 4 Total recognized in net periodic benefit cost and other comprehensive $ 38 $ (4) $ 9 |
Fair Value Hierarchy Of Assets Measured At Fair Value On A Recurring Basis | (Dollars in millions) Quoted prices in Significant other Significant Total At December 31, 2020 Fixed maturities, available for sale: United States Government $ 31 $ — $ — $ 31 Corporate — 20 — 20 States, municipalities and political subdivisions — 9 — 9 Total fixed maturities, available for sale 31 29 — 60 Common equities 266 — — 266 Total $ 297 $ 29 $ — $ 326 At December 31, 2019 Fixed maturities, available for sale: United States Government $ 25 $ — $ — $ 25 Corporate — 27 — 27 States, municipalities and political subdivisions — 25 — 25 Total fixed maturities, available for sale 25 52 — 77 Common equities 260 — — 260 Total $ 285 $ 52 $ — $ 337 |
Expected Future Benefit Payments For Qualified Plan And SERP | We expect to make the following benefit payments for our qualified plan and SERP, reflecting expected future service: (Dollars in millions) Years ended December 31, 2021 2022 2023 2024 2025 2026 - 2030 Expected future benefit payments $ 49 $ 22 $ 25 $ 27 $ 29 $ 163 |
Statutory Accounting Informat_2
Statutory Accounting Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Staturory Accounting Information [Abstract] | |
Statutory Net Income And Statutory Surplus | The statutory net income and statutory capital and surplus are presented below: (Dollars in millions) Net income Capital and surplus Years ended December 31, At December 31, 2020 2019 2018 2020 2019 The Cincinnati Insurance Company $ 466 $ 558 $ 626 $ 5,838 $ 5,620 The Cincinnati Casualty Company 14 13 16 456 437 The Cincinnati Indemnity Company 3 3 5 115 111 The Cincinnati Specialty Underwriters Insurance Company 42 62 69 528 526 The Cincinnati Life Insurance Company 27 19 — 241 204 |
Share-Based Associate Compens_2
Share-Based Associate Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock Option Information | Below is a summary of option information for the year 2020: (Dollars in millions, except exercise price. Shares in thousands) Shares Weighted- Aggregate Weighted-average Outstanding option shares at January 1, 2020 3,437 $ 63.99 Granted 508 111.53 Exercised (274) 41.86 Forfeited or expired (70) 55.60 Outstanding option shares at December 31, 2020 3,601 72.55 $ 66 6.01 years Options exercisable at end of period 2,509 $ 63.11 $ 61 4.97 years |
Restricted Stock Unit Information | elow is a summary of service-based and performance-based share information, assuming a target payout for performance-based shares, for the year 2020: (Shares in thousands) Service-based Weighted- Performance-based Weighted- Nonvested at January 1, 2020 783 $ 70.27 165 $ 64.23 Granted 204 104.81 38 111.77 Vested (269) 66.53 (56) 43.26 Forfeited or canceled (22) 78.96 — — Nonvested at December 31, 2020 696 81.56 147 84.64 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Assumptions Used In Option Grants Issued | The following weighted average assumptions were used in determining fair value for option grants issued: 2020 2019 2018 Weighted-average expected term 7-8 years 7-8 years 7-8 years Expected volatility 16.89-17.13% 14.49-15.39% 15.04-15.10% Dividend yield 2.15% 2.61% 2.98% Risk-free rates 1.40-1.41% 2.62-2.64% 2.77-2.83% Weighted-average fair value of options granted during the period $15.45 $11.73 $9.87 |
Performance Based Shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Assumptions Used In Option Grants Issued | he following assumptions were used in determining fair value for performance-based grants issued: 2020 2019 2018 Expected term 2.86 years 2.86 years 2.89 years Expected volatility 15.88-25.13% 15.10-25.00% 16.01-26.32% Dividend yield 2.15% 2.61% 2.81% Risk-free rates 1.30% 2.48% 2.22% |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information is summarized in the following table: (Dollars in millions) Years ended December 31, 2020 2019 2018 Revenues: Commercial lines insurance Commercial casualty $ 1,165 $ 1,102 $ 1,075 Commercial property 1,010 958 920 Commercial auto 755 707 664 Workers' compensation 271 300 324 Other commercial 275 252 235 Commercial lines insurance premiums 3,476 3,319 3,218 Fee revenues 3 5 5 Total commercial lines insurance 3,479 3,324 3,223 Personal lines insurance Personal auto 615 621 614 Homeowner 658 607 563 Other personal 190 176 159 Personal lines insurance premiums 1,463 1,404 1,336 Fee revenues 4 4 5 Total personal lines insurance 1,467 1,408 1,341 Excess and surplus lines insurance 325 278 234 Fee revenues 2 2 1 Total excess and surplus lines insurance 327 280 235 Life insurance premiums 289 270 250 Fee revenues 2 4 4 Total life insurance 291 274 254 Investments Investment income, net of expenses 670 646 619 Investment gains and losses, net 865 1,650 (402) Total investment revenue 1,535 2,296 217 Other Premiums 427 333 132 Other 10 9 5 Total other revenue 437 342 137 Total revenues $ 7,536 $ 7,924 $ 5,407 Income (loss) before income taxes: Insurance underwriting results Commercial lines insurance $ 64 $ 241 $ 151 Personal lines insurance 47 8 (20) Excess and surplus lines insurance 34 53 63 Life insurance 11 1 8 Investments 1,433 2,197 121 Other (90) (28) (72) Total income before income taxes $ 1,499 $ 2,472 $ 251 December 31, December 31, Identifiable assets: 2020 2019 Property casualty insurance $ 3,838 $ 3,437 Life insurance 1,661 1,516 Investments 21,332 19,583 Other 711 872 Total $ 27,542 $ 25,408 |
Quarterly Supplementary Data (T
Quarterly Supplementary Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Information | This table includes unaudited quarterly financial information for the years ended December 31, 2020 and 2019: (Dollars in millions, except per share data) Quarter 1st 2nd 3rd 4th Full year 2020 Revenues $ (99) $ 2,714 $ 2,227 $ 2,694 $ 7,536 Income (loss) before income taxes (1,576) 1,145 614 1,316 1,499 Net income (loss) (1,226) 909 484 1,049 1,216 Net income (loss) per common share—basic (7.56) 5.65 3.01 6.52 7.55 Net income (loss) per common share—diluted (7.56) 5.63 2.99 6.47 7.49 2019 Revenues $ 2,159 $ 1,913 $ 1,700 $ 2,152 $ 7,924 Income before income taxes 867 530 294 781 2,472 Net income 695 428 248 626 1,997 Net income per common share—basic 4.27 2.62 1.51 3.84 12.24 Net income per common share—diluted 4.22 2.59 1.49 3.79 12.10 |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Narrative) (Details) | Feb. 28, 2019 | Dec. 31, 2020USD ($)independent_insurance_agencysubsidiarystatereporting_locations | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2008 |
Significant Accounting Policies | |||||
Income Tax Examination, Penalties Expense | $ 0 | ||||
Number of operating subsidaries | subsidiary | 2 | ||||
Number of independent insurance agencies | independent_insurance_agency | 1,848 | ||||
Number of reporting locations | reporting_locations | 2,578 | ||||
Number of states in which entity operates | state | 45 | ||||
Excess (deficit) of Separate Account Fair Value over (under) Contract Holder Account Value | $ 99,000,000 | $ 52,000,000 | |||
Minimum participant age to elect | 40 years | ||||
Other invested assets | 348,000,000 | 296,000,000 | |||
Depreciation expense | 33,000,000 | 25,000,000 | $ 31,000,000 | ||
Land, building and equipment impairments | 0 | 0 | $ 0 | ||
Increase to allowance through retained earnings for ASU 2016-13, after-tax | 2,000,000 | ||||
Covid-19 pandemic-related incurred loss and expenses | 85,000,000 | ||||
Premium Receivable, Allowance for Credit Loss | 19,000,000 | ||||
Premium Receivable, Allowance for Credit Loss, Property Casualty Premiums Receivable | $ 9,000,000 | ||||
Minimum | |||||
Significant Accounting Policies | |||||
Estimated useful lives | 3 years | ||||
Maximum | |||||
Significant Accounting Policies | |||||
Estimated useful lives | 39 years 6 months | ||||
Life Policy Loans | |||||
Significant Accounting Policies | |||||
Other invested assets | $ 33,000,000 | 32,000,000 | |||
Venture Capital Funds | |||||
Significant Accounting Policies | |||||
Other invested assets | 128,000,000 | 71,000,000 | |||
Real Estate Investment | |||||
Significant Accounting Policies | |||||
Other invested assets | 25,000,000 | 29,000,000 | |||
Other than Securities Investment | |||||
Significant Accounting Policies | |||||
Other invested assets | $ 162,000,000 | $ 164,000,000 | |||
10 Largest States | |||||
Significant Accounting Policies | |||||
Generated percentage of total earned premiums | 53.30% | 54.80% | |||
Ohio, Largest State | |||||
Significant Accounting Policies | |||||
Generated percentage of total earned premiums | 14.80% | 15.10% | |||
Illinois, Georgia, North Carolina, Indiana and Pennsylvania | Minimum | |||||
Significant Accounting Policies | |||||
Generated percentage of total earned premiums | 4.00% | ||||
Illinois, Georgia, North Carolina, Indiana and Pennsylvania | Maximum | |||||
Significant Accounting Policies | |||||
Generated percentage of total earned premiums | 6.00% | ||||
Largest Single Agency Relationship | |||||
Significant Accounting Policies | |||||
Generated percentage of total earned premiums | 1.30% | ||||
All Other | Maximum | |||||
Significant Accounting Policies | |||||
Generated percentage of total earned premiums | 4.00% | ||||
Stock Options | |||||
Significant Accounting Policies | |||||
Weighted-average remaining contractual life for options expected to vest | 10 years | ||||
Property Casualty Insurance Segment | |||||
Significant Accounting Policies | |||||
Number of operating subsidaries | subsidiary | 2 | ||||
Stock Options | |||||
Significant Accounting Policies | |||||
Awards vesting period | 3 years | ||||
Restricted Stock Units (RSUs) | |||||
Significant Accounting Policies | |||||
Awards vesting period | 3 years | ||||
Cincinnati Global | |||||
Significant Accounting Policies | |||||
Goodwill | $ 30,000,000 | $ 30,000,000 | |||
Syndicate capacity - indefinite lived | $ 31,000,000 | $ 31,000,000 | |||
Broker Relationships and Internally developed technology | Cincinnati Global | Minimum | |||||
Significant Accounting Policies | |||||
Useful life | 5 years | ||||
Broker Relationships and Internally developed technology | Cincinnati Global | Maximum | |||||
Significant Accounting Policies | |||||
Useful life | 15 years |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Gain (Loss) on Investments | |||
Largest single common stock holding | $ 644 | $ 414 | |
Largest equity holdings to total equity portfolio | 7.50% | 5.50% | |
Largest equity holdings to total portfolio | 3.00% | 2.10% | |
Assets Held by Insurance Regulators | $ 121 | $ 117 | |
Collateral at fair value | 98 | $ 95 | |
Impaired securities | 3 | 1 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate loss | $ 3 | $ 58 | |
Equity securities, at fair value (cost: 2020—$3,927; 2019—$3,581) | $ 8,856 | $ 7,752 | |
Number of Impaired Securities with Allowance for Credit Losses | security | 0 | ||
Fixed Maturities | |||
Gain (Loss) on Investments | |||
Number of securities total unrealized loss in an unrealized loss position for 12 months or more | 38 | 400 | |
Number of securities below 70 percent of amortized cost | 0 | 0 | 0 |
Number Of Impaired Securities Intended to be Sold | security | 14 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss 3 | $ 10 | ||
Number Of Securities Continuous Unrealized Loss Position | security | 128 | ||
Equity Securities | Common Stock | |||
Gain (Loss) on Investments | |||
Equity securities, at fair value (cost: 2020—$3,927; 2019—$3,581) | $ 8,541 | $ 7,518 |
Investments (Analysis Of Cost O
Investments (Analysis Of Cost Or Amortized Cost Gross Unrealized Gains And Losses And Fair Value For Investments) (Details) - Fixed Maturities - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | $ 11,312 | $ 11,108 |
Gross unrealized gains | 1,036 | 597 |
Gross unrealized losses | 10 | 7 |
Fair value | 12,338 | 11,698 |
Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 6,281 | 6,074 |
Gross unrealized gains | 621 | 332 |
Gross unrealized losses | 7 | 5 |
Fair value | 6,895 | 6,401 |
States, Municipalities and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 4,604 | 4,477 |
Gross unrealized gains | 395 | 252 |
Gross unrealized losses | 2 | 1 |
Fair value | 4,997 | 4,728 |
Commercial Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 271 | 290 |
Gross unrealized gains | 15 | 11 |
Gross unrealized losses | 1 | 0 |
Fair value | 285 | 301 |
United States Government | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 115 | 102 |
Gross unrealized gains | 5 | 2 |
Gross unrealized losses | 0 | 0 |
Fair value | 120 | 104 |
Foreign Government | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 29 | 28 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 29 | 28 |
Government-Sponsored Enterprises | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 12 | 137 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 1 |
Fair value | $ 12 | $ 136 |
Investments (Fair Values And Un
Investments (Fair Values And Unrealized Losses By Investment Category And By The Duration Of The Securities' Continuous Unrealized Loss Position) (Details) - Fixed Maturities - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | $ 406 | $ 340 |
Less than 12 Months, Unrealized losses | 8 | 4 |
12 months or more fair value | 54 | 183 |
12 Months or more, unrealized losses | 2 | 3 |
Total fair value | 460 | 523 |
Total Unrealized Losses | 10 | 7 |
Corporate Securities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 330 | 199 |
Less than 12 Months, Unrealized losses | 5 | 2 |
12 months or more fair value | 46 | 118 |
12 Months or more, unrealized losses | 2 | 3 |
Total fair value | 376 | 317 |
Total Unrealized Losses | 7 | 5 |
States, Municipalities and Political Subdivisions | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 31 | 98 |
Less than 12 Months, Unrealized losses | 2 | 1 |
12 months or more fair value | 2 | 10 |
12 Months or more, unrealized losses | 0 | 0 |
Total fair value | 33 | 108 |
Total Unrealized Losses | 2 | 1 |
Commercial Mortgage Backed Securities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 23 | 6 |
Less than 12 Months, Unrealized losses | 1 | 0 |
12 months or more fair value | 6 | 0 |
12 Months or more, unrealized losses | 0 | 0 |
Total fair value | 29 | 6 |
Total Unrealized Losses | 1 | 0 |
United States Government | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 12 | 0 |
Less than 12 Months, Unrealized losses | 0 | 0 |
12 months or more fair value | 0 | 4 |
12 Months or more, unrealized losses | 0 | 0 |
Total fair value | 12 | 4 |
Total Unrealized Losses | 0 | 0 |
Foreign government | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 10 | 11 |
Less than 12 Months, Unrealized losses | 0 | 0 |
12 months or more fair value | 0 | 0 |
12 Months or more, unrealized losses | 0 | 0 |
Total fair value | 10 | 11 |
Total Unrealized Losses | $ 0 | 0 |
Government-Sponsored Enterprises | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 26 | |
Less than 12 Months, Unrealized losses | 1 | |
12 months or more fair value | 51 | |
12 Months or more, unrealized losses | 0 | |
Total fair value | 77 | |
Total Unrealized Losses | $ 1 |
Investments (Contractual Maturi
Investments (Contractual Maturity Dates For Fixed-Maturity And Short-Term Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized cost | ||
Due in one year or less | $ 581 | |
Due after one year through five years | 3,450 | |
Due after five years through ten years | 3,789 | |
Due after ten years | 3,492 | |
Total | 11,312 | $ 11,108 |
Fair value | ||
Due in one year or less | 589 | |
Due after one year through five years | 3,697 | |
Due after five years through ten years | 4,178 | |
Due after ten years | 3,874 | |
Total | $ 12,338 | $ 11,698 |
% of fair value | ||
Due in one year or less | 4.80% | |
Due after one year through five years | 30.00% | |
Due after five years through ten years | 33.90% | |
Due after ten years | 31.30% | |
Total | 100.00% |
Investments (Investment Income
Investments (Investment Income Realized Investment Gains And Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment income: | |||
Interest | $ 455 | $ 446 | $ 445 |
Dividends | 220 | 201 | 181 |
Other | 8 | 12 | 5 |
Total | 683 | 659 | 631 |
Less investment expenses | 13 | 13 | 12 |
Total | 670 | 646 | 619 |
Gain (Loss) on Sale of Investments | 851 | 1,640 | (408) |
Investment gains and losses, net: | |||
Other | 10 | (3) | (12) |
Total | 865 | 1,650 | (402) |
Fixed Maturities | |||
Investment gains and losses, net: | |||
Gross realized gains | 16 | 13 | 12 |
Gross realized losses | (3) | (3) | (2) |
Write-down of impaired securities | (78) | (9) | (5) |
Total | (65) | 1 | 5 |
Equity Securities | |||
Investment income: | |||
Gain (Loss) on Sale of Investments | 79 | 26 | 9 |
Unrealized Gain (Loss) on Investments | 841 | 1,626 | (404) |
Investment gains and losses, net: | |||
Total | $ 920 | $ 1,652 | $ (395) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Principal amount of debt | $ 793 | $ 793 |
Recorded outstanding principal and interest for these life policy loans | 95 | 77 |
Loss and loss expense reserves | 2,915 | 2,835 |
Life policy and investment contract reserves | 2,915 | 2,835 |
Investment contract reserves | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Loss and loss expense reserves | 1,562 | 1,559 |
Life policy and investment contract reserves | 1,562 | 1,559 |
Life Policy Loans | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Recorded outstanding principal and interest for these life policy loans | 33 | 32 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 900 | $ 767 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Hierarchy For Assets Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | $ 12,338 | $ 11,698 |
Equity securities, at fair value (cost: 2020—$3,927; 2019—$3,581) | 8,856 | 7,752 |
Separate accounts taxable fixed maturities | 952 | 882 |
Total | 22,148 | 20,350 |
Top Hat Savings Plan - Mutual Funds and Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Top Hat savings plan mutual funds and common equity (included in Other assets) | 51 | 45 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total | 8,712 | 7,667 |
Level 1 | Top Hat Savings Plan - Mutual Funds and Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Top Hat savings plan mutual funds and common equity (included in Other assets) | 51 | 45 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total | 13,436 | 12,683 |
Level 2 | Top Hat Savings Plan - Mutual Funds and Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Top Hat savings plan mutual funds and common equity (included in Other assets) | 0 | 0 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total | 0 | 0 |
Level 3 | Top Hat Savings Plan - Mutual Funds and Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Top Hat savings plan mutual funds and common equity (included in Other assets) | 0 | 0 |
Fixed Maturities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 12,338 | 11,698 |
Fixed Maturities | Corporate Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 6,895 | 6,401 |
Fixed Maturities | States, Municipalities and Political Subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 4,997 | 4,728 |
Fixed Maturities | Commercial Mortgage Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 285 | 301 |
Fixed Maturities | United States Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 120 | 104 |
Fixed Maturities | Foreign Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 29 | 28 |
Fixed Maturities | Government-Sponsored Enterprises | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 12 | 136 |
Fixed Maturities | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 120 | 104 |
Fixed Maturities | Level 1 | Corporate Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 0 | 0 |
Fixed Maturities | Level 1 | States, Municipalities and Political Subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 0 | 0 |
Fixed Maturities | Level 1 | Commercial Mortgage Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 0 | 0 |
Fixed Maturities | Level 1 | United States Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 120 | 104 |
Fixed Maturities | Level 1 | Foreign Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 0 | 0 |
Fixed Maturities | Level 1 | Government-Sponsored Enterprises | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 0 | 0 |
Fixed Maturities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 12,218 | 11,594 |
Fixed Maturities | Level 2 | Corporate Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 6,895 | 6,401 |
Fixed Maturities | Level 2 | States, Municipalities and Political Subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 4,997 | 4,728 |
Fixed Maturities | Level 2 | Commercial Mortgage Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 285 | 301 |
Fixed Maturities | Level 2 | United States Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 0 | 0 |
Fixed Maturities | Level 2 | Foreign Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 29 | 28 |
Fixed Maturities | Level 2 | Government-Sponsored Enterprises | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 12 | 136 |
Fixed Maturities | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 0 | 0 |
Fixed Maturities | Level 3 | Corporate Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 0 | 0 |
Fixed Maturities | Level 3 | States, Municipalities and Political Subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 0 | 0 |
Fixed Maturities | Level 3 | Commercial Mortgage Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 0 | 0 |
Fixed Maturities | Level 3 | United States Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 0 | 0 |
Fixed Maturities | Level 3 | Foreign Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 0 | 0 |
Fixed Maturities | Level 3 | Government-Sponsored Enterprises | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fixed maturities, at fair value (amortized cost: 2020—$11,312; 2019—$11,108) | 0 | 0 |
Equity Securities | Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Equity securities, at fair value (cost: 2020—$3,927; 2019—$3,581) | 8,541 | 7,518 |
Equity Securities | Nonredeemable Preferred Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Equity securities, at fair value (cost: 2020—$3,927; 2019—$3,581) | 315 | 234 |
Equity Securities | Level 1 | Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Equity securities, at fair value (cost: 2020—$3,927; 2019—$3,581) | 8,541 | 7,518 |
Equity Securities | Level 1 | Nonredeemable Preferred Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Equity securities, at fair value (cost: 2020—$3,927; 2019—$3,581) | 0 | 0 |
Equity Securities | Level 2 | Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Equity securities, at fair value (cost: 2020—$3,927; 2019—$3,581) | 0 | 0 |
Equity Securities | Level 2 | Nonredeemable Preferred Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Equity securities, at fair value (cost: 2020—$3,927; 2019—$3,581) | 315 | 234 |
Equity Securities | Level 3 | Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Equity securities, at fair value (cost: 2020—$3,927; 2019—$3,581) | 0 | 0 |
Equity Securities | Level 3 | Nonredeemable Preferred Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Equity securities, at fair value (cost: 2020—$3,927; 2019—$3,581) | 0 | 0 |
Taxable Fixed Maturities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Separate accounts taxable fixed maturities | 903 | 855 |
Taxable Fixed Maturities | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Separate accounts taxable fixed maturities | 0 | 0 |
Taxable Fixed Maturities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Separate accounts taxable fixed maturities | 903 | 855 |
Taxable Fixed Maturities | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Separate accounts taxable fixed maturities | $ 0 | $ 0 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value of Note Payable and Long-Term Debt) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of note payable | $ 54 | $ 39 |
Total | 1,126 | 1,091 |
6.900% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | $ 35 | $ 34 |
Interest rate | 6.90% | 6.90% |
6.920% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | $ 515 | $ 506 |
Interest rate | 6.92% | 6.92% |
6.125% Senior Notes, Due 2034 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | $ 522 | $ 512 |
Interest rate | 6.125% | 6.125% |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of note payable | $ 0 | $ 0 |
Total | 0 | 0 |
Level 1 | 6.900% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 1 | 6.920% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 1 | 6.125% Senior Notes, Due 2034 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of note payable | 54 | 39 |
Total | 1,126 | 1,091 |
Level 2 | 6.900% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 35 | 34 |
Level 2 | 6.920% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 515 | 506 |
Level 2 | 6.125% Senior Notes, Due 2034 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 522 | 512 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of note payable | 0 | 0 |
Total | 0 | 0 |
Level 3 | 6.900% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 3 | 6.920% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 3 | 6.125% Senior Notes, Due 2034 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | $ 0 | $ 0 |
Fair Value Measurements (Fair_3
Fair Value Measurements (Fair Value of Life Policy) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of life policy loans | $ 49 | $ 44 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of life policy loans | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of life policy loans | 0 | 0 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of life policy loans | $ 49 | $ 44 |
Fair Value Measurements (Fair_4
Fair Value Measurements (Fair Value Of Deferred Annuities, Structured Settlements And Other Items) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | $ 1,063 | $ 982 |
Deferred Annuities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 836 | 770 |
Structured Settlements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 227 | 212 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 0 | 0 |
Level 1 | Deferred Annuities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 0 | 0 |
Level 1 | Structured Settlements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 227 | 212 |
Level 2 | Deferred Annuities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 0 | 0 |
Level 2 | Structured Settlements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 227 | 212 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 836 | 770 |
Level 3 | Deferred Annuities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 836 | 770 |
Level 3 | Structured Settlements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | $ 0 | $ 0 |
Property Casualty Loss And Lo_3
Property Casualty Loss And Loss Expenses (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | $ 6,677,000,000 | $ 6,088,000,000 | $ 5,646,000,000 | $ 5,219,000,000 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (131,000,000) | (248,000,000) | (167,000,000) | |
Net loss and loss expense reserves for asbestos and environmental claims | $ 85,000,000 | $ 85,000,000 | ||
Percentage of reserves for asbestos and environmental claims | 2.00% | 2.00% | ||
Maximum | ||||
Property Casualty Insurance Underwriters | ||||
Reinsurance retention | $ 500,000 | |||
Life and Health Loss Reserves | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 69,000,000 | $ 59,000,000 | 61,000,000 | |
Commercial Insurance | ||||
Property Casualty Insurance Underwriters | ||||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (95,000,000) | (192,000,000) | (157,000,000) | |
Commercial Insurance | Commercial Casualty Line | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 2,282,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (54,000,000) | (78,000,000) | (47,000,000) | |
Commercial Insurance | Workers' Compensation Line | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 1,002,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (39,000,000) | (77,000,000) | (58,000,000) | |
Commercial Insurance | Commercial Property Line | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 514,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (16,000,000) | (25,000,000) | (47,000,000) | |
Commercial Insurance | Commercial Auto Line | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 685,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | 17,000,000 | (6,000,000) | ||
Personal Insurance | ||||
Property Casualty Insurance Underwriters | ||||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (18,000,000) | (27,000,000) | 13,000,000 | |
Personal Insurance | Personal Auto | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 292,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (15,000,000) | (26,000,000) | ||
Personal Insurance | Homeowner | ||||
Property Casualty Insurance Underwriters | ||||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (5,000,000) | 11,000,000 | ||
Excess and Surplus Lines Insurance | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 423,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | 7,000,000 | (11,000,000) | (24,000,000) | |
Reinsurance assumed and other non segment | ||||
Property Casualty Insurance Underwriters | ||||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | $ (25,000,000) | $ (18,000,000) | $ 1,000,000 |
Consolidated Property Casualty
Consolidated Property Casualty Loss And Loss Expense Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 28, 2019 | |
Business Acquisition | ||||
Gross loss and loss expense reserves, January 1 | $ 6,088 | $ 5,646 | $ 5,219 | |
Less reinsurance recoverable | 342 | 238 | 187 | |
Net loss and loss expense reserves, January 1 | 5,746 | 5,408 | 5,032 | |
Net incurred loss and loss expenses related to: | ||||
Current accident year | 3,968 | 3,600 | 3,390 | |
Prior accident years | (131) | (248) | (167) | |
Total incurred | 3,837 | 3,352 | 3,223 | |
Net paid loss and loss expenses related to: | ||||
Current accident year | 1,493 | 1,462 | 1,391 | |
Prior accident years | 1,690 | 1,798 | 1,456 | |
Total paid | 3,183 | 3,260 | 2,847 | |
Net loss and loss expense reserves, December 31 | 6,400 | 5,746 | 5,408 | |
Plus reinsurance recoverable | 277 | 342 | 238 | |
Gross loss and loss expense reserves, December 31 | $ 6,677 | $ 6,088 | $ 5,646 | |
Cincinnati Global | ||||
Business Acquisition | ||||
Net loss and loss expense reserves related to acquisition of Cincinnati Global at February 28, 2019 | $ 246 |
Reconciliation of Incurred Loss
Reconciliation of Incurred Losses and ALAE (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | $ 3,158 | |||
Total liabilities for loss and ALAE, net of reinsurance | 6,394 | |||
Reinsurance recoverable on unpaid losses | 277 | $ 342 | $ 238 | $ 187 |
Unallocated loss adjustment expense reserves | 283 | |||
Total liabilities for gross loss and loss expense reserves | 6,677 | $ 6,088 | $ 5,646 | $ 5,219 |
Other Short-duration Insurance Product Line | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Total liabilities for loss and ALAE, net of reinsurance | 959 | |||
Commercial Insurance | Commercial Casualty Line | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 5,179 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 3,012 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 91 | |||
Total liabilities for loss and ALAE, net of reinsurance | 2,258 | |||
Reinsurance recoverable on unpaid losses | 24 | |||
Total liabilities for gross loss and loss expense reserves | 2,282 | |||
Commercial Insurance | Workers' Compensation Line | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 1,990 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 1,357 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 308 | |||
Total liabilities for loss and ALAE, net of reinsurance | 941 | |||
Reinsurance recoverable on unpaid losses | 61 | |||
Total liabilities for gross loss and loss expense reserves | 1,002 | |||
Commercial Insurance | Commercial Auto Line | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 2,235 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 1,581 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 26 | |||
Total liabilities for loss and ALAE, net of reinsurance | 680 | |||
Reinsurance recoverable on unpaid losses | 5 | |||
Total liabilities for gross loss and loss expense reserves | 685 | |||
Commercial Insurance | Commercial Property Line | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 3,158 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 2,725 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 15 | |||
Total liabilities for loss and ALAE, net of reinsurance | 448 | |||
Reinsurance recoverable on unpaid losses | 66 | |||
Total liabilities for gross loss and loss expense reserves | 514 | |||
Personal Insurance | Personal Auto | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 1,860 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 1,610 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 10 | |||
Total liabilities for loss and ALAE, net of reinsurance | 260 | |||
Reinsurance recoverable on unpaid losses | 32 | |||
Total liabilities for gross loss and loss expense reserves | 292 | |||
Personal Insurance | Home Owner Line | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 1,996 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 1,781 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 4 | |||
Total liabilities for loss and ALAE, net of reinsurance | 219 | |||
Reinsurance recoverable on unpaid losses | 18 | |||
Total liabilities for gross loss and loss expense reserves | 237 | |||
Excess and Surplus Lines Insurance | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 836 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 430 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 1 | |||
Total liabilities for loss and ALAE, net of reinsurance | 407 | |||
Reinsurance recoverable on unpaid losses | 16 | |||
Total liabilities for gross loss and loss expense reserves | $ 423 |
Claims Development - Commercial
Claims Development - Commercial Casualty (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2020USD ($)reported_claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | $ 3,158 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 6,394 | |||||||||
Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 5,179 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | 3,012 | |||||||||
All outstanding liabilities before, net of reinsurance | 91 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 2,258 | |||||||||
2011 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 361 | $ 368 | $ 365 | $ 366 | $ 380 | $ 375 | $ 377 | $ 377 | $ 404 | $ 466 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 19 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 342 | 337 | 325 | 315 | 298 | 266 | 227 | 149 | 93 | $ 27 |
2012 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 397 | 397 | 399 | 404 | 394 | 394 | 417 | 414 | 466 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 11 | |||||||||
Cumulative number of reported claims | reported_claim | 18 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 374 | 364 | 346 | 330 | 288 | 232 | 170 | 88 | $ 27 | |
2013 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 386 | 391 | 407 | 413 | 416 | 431 | 443 | 448 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 22 | |||||||||
Cumulative number of reported claims | reported_claim | 20 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 348 | 337 | 312 | 286 | 232 | 159 | 90 | $ 35 | ||
2014 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 469 | 465 | 479 | 476 | 479 | 496 | 503 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 27 | |||||||||
Cumulative number of reported claims | reported_claim | 21 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 409 | 390 | 338 | 287 | 172 | 97 | $ 34 | |||
2015 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 502 | 508 | 516 | 529 | 526 | 533 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 54 | |||||||||
Cumulative number of reported claims | reported_claim | 21 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 404 | 362 | 287 | 200 | 108 | $ 38 | ||||
2016 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 554 | 555 | 557 | 574 | 563 | |||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 89 | |||||||||
Cumulative number of reported claims | reported_claim | 21 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 395 | 331 | 228 | 126 | $ 46 | |||||
2017 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 571 | 577 | 597 | 610 | ||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 124 | |||||||||
Cumulative number of reported claims | reported_claim | 21 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 320 | 234 | 122 | $ 48 | ||||||
2018 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 622 | 641 | 650 | |||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 181 | |||||||||
Cumulative number of reported claims | reported_claim | 22 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 253 | 148 | $ 44 | |||||||
2019 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 643 | 672 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 293 | |||||||||
Cumulative number of reported claims | reported_claim | 19 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 134 | $ 39 | ||||||||
2020 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 674 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 472 | |||||||||
Cumulative number of reported claims | reported_claim | 11 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 33 |
Claims Development - Workers Co
Claims Development - Workers Compensation (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2020USD ($)reported_claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | $ 3,158 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 6,394 | |||||||||
Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 1,990 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | 1,357 | |||||||||
All outstanding liabilities before, net of reinsurance | 308 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 941 | |||||||||
2011 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 228 | $ 228 | $ 229 | $ 231 | $ 236 | $ 239 | $ 242 | $ 246 | $ 251 | $ 284 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 17 | |||||||||
Cumulative number of reported claims | reported_claim | 24 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 198 | 197 | 195 | 192 | 190 | 186 | 177 | 161 | 131 | $ 65 |
2012 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 207 | 208 | 209 | 211 | 213 | 220 | 234 | 245 | 265 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 19 | |||||||||
Cumulative number of reported claims | reported_claim | 21 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 182 | 180 | 178 | 175 | 171 | 162 | 147 | 121 | $ 62 | |
2013 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 201 | 202 | 205 | 208 | 212 | 221 | 246 | 264 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 12 | |||||||||
Cumulative number of reported claims | reported_claim | 20 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 174 | 170 | 168 | 164 | 157 | 144 | 119 | $ 61 | ||
2014 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 197 | 198 | 201 | 203 | 214 | 233 | 261 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 13 | |||||||||
Cumulative number of reported claims | reported_claim | 19 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 165 | 162 | 157 | 148 | 134 | 110 | $ 56 | |||
2015 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 173 | 179 | 195 | 208 | 220 | 246 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 26 | |||||||||
Cumulative number of reported claims | reported_claim | 17 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 137 | 134 | 129 | 115 | 93 | $ 47 | ||||
2016 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 183 | 188 | 206 | 218 | 230 | |||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 27 | |||||||||
Cumulative number of reported claims | reported_claim | 16 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 141 | 131 | 119 | 97 | $ 46 | |||||
2017 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 183 | 190 | 208 | 218 | ||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 46 | |||||||||
Cumulative number of reported claims | reported_claim | 15 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 114 | 106 | 88 | $ 45 | ||||||
2018 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 199 | 207 | 222 | |||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 52 | |||||||||
Cumulative number of reported claims | reported_claim | 15 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 115 | 95 | $ 48 | |||||||
2019 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 215 | 224 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 65 | |||||||||
Cumulative number of reported claims | reported_claim | 14 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 94 | $ 49 | ||||||||
2020 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 204 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 100 | |||||||||
Cumulative number of reported claims | reported_claim | 10 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 37 |
Claims Development - Commerci_2
Claims Development - Commercial Auto (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2020USD ($)reported_claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | $ 3,158 | ||||
Liabilities for loss and ALAE, net of reinsurance | 6,394 | ||||
Commercial Auto Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 2,235 | ||||
Cumulative paid losses and ALAE, net of reinsurance | 1,581 | ||||
All outstanding liabilities before, net of reinsurance | 26 | ||||
Liabilities for loss and ALAE, net of reinsurance | 680 | ||||
2016 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 474 | $ 463 | $ 450 | $ 430 | $ 417 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 5 | ||||
Cumulative number of reported claims | reported_claim | 53 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 441 | 408 | 350 | 273 | $ 184 |
2017 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 444 | 443 | 441 | 451 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 13 | ||||
Cumulative number of reported claims | reported_claim | 51 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 381 | 334 | 266 | $ 187 | |
2018 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 442 | 442 | 453 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 36 | ||||
Cumulative number of reported claims | reported_claim | 49 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 337 | 266 | $ 184 | ||
2019 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 451 | 452 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 73 | ||||
Cumulative number of reported claims | reported_claim | 46 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 268 | $ 183 | |||
2020 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 424 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 164 | ||||
Cumulative number of reported claims | reported_claim | 33 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 154 |
Claims Development - Commerci_3
Claims Development - Commercial Property (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2020USD ($)reported_claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | $ 3,158 | ||||
Liabilities for loss and ALAE, net of reinsurance | 6,394 | ||||
Commercial Property Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 3,158 | ||||
Cumulative paid losses and ALAE, net of reinsurance | 2,725 | ||||
All outstanding liabilities before, net of reinsurance | 15 | ||||
Liabilities for loss and ALAE, net of reinsurance | 448 | ||||
2016 | Commercial Property Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 542 | $ 545 | $ 541 | $ 551 | $ 590 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 2 | ||||
Cumulative number of reported claims | reported_claim | 17 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 539 | 539 | 528 | 504 | $ 358 |
2017 | Commercial Property Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 565 | 556 | 560 | 587 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 3 | ||||
Cumulative number of reported claims | reported_claim | 18 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 560 | 547 | 522 | $ 395 | |
2018 | Commercial Property Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 590 | 603 | 630 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 7 | ||||
Cumulative number of reported claims | reported_claim | 18 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 576 | 559 | $ 386 | ||
2019 | Commercial Property Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 606 | 621 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 6 | ||||
Cumulative number of reported claims | reported_claim | 17 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 561 | $ 413 | |||
2020 | Commercial Property Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 855 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 141 | ||||
Cumulative number of reported claims | reported_claim | 22 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 489 |
Claims Development - Personal A
Claims Development - Personal Auto (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2020USD ($)reported_claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | $ 3,158 | ||||
Liabilities for loss and ALAE, net of reinsurance | 6,394 | ||||
Personal Auto | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 1,860 | ||||
Cumulative paid losses and ALAE, net of reinsurance | 1,610 | ||||
All outstanding liabilities before, net of reinsurance | 10 | ||||
Liabilities for loss and ALAE, net of reinsurance | 260 | ||||
2016 | Personal Auto | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 384 | $ 384 | $ 386 | $ 384 | $ 383 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 1 | ||||
Cumulative number of reported claims | reported_claim | 110 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 378 | 370 | 351 | 316 | $ 243 |
2017 | Personal Auto | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 393 | 391 | 394 | 412 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 1 | ||||
Cumulative number of reported claims | reported_claim | 109 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 374 | 358 | 324 | $ 256 | |
2018 | Personal Auto | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 395 | 398 | 424 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 1 | ||||
Cumulative number of reported claims | reported_claim | 111 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 358 | 327 | $ 262 | ||
2019 | Personal Auto | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 383 | 399 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 14 | ||||
Cumulative number of reported claims | reported_claim | 102 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 314 | $ 250 | |||
2020 | Personal Auto | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 305 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 62 | ||||
Cumulative number of reported claims | reported_claim | 67 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 186 |
Claims Development - Homeowner
Claims Development - Homeowner (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2020USD ($)reported_claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | $ 3,158 | ||||
Liabilities for loss and ALAE, net of reinsurance | 6,394 | ||||
Home Owner Line | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 1,996 | ||||
Cumulative paid losses and ALAE, net of reinsurance | 1,781 | ||||
All outstanding liabilities before, net of reinsurance | 4 | ||||
Liabilities for loss and ALAE, net of reinsurance | 219 | ||||
2016 | Home Owner Line | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 304 | $ 302 | $ 303 | $ 304 | $ 315 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 0 | ||||
Cumulative number of reported claims | reported_claim | 23 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 302 | 299 | 295 | 283 | $ 208 |
2017 | Home Owner Line | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 387 | 385 | 383 | 356 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 0 | ||||
Cumulative number of reported claims | reported_claim | 26 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 384 | 378 | 356 | $ 277 | |
2018 | Home Owner Line | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 387 | 386 | 370 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 5 | ||||
Cumulative number of reported claims | reported_claim | 24 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 378 | 368 | $ 268 | ||
2019 | Home Owner Line | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 421 | 432 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 10 | ||||
Cumulative number of reported claims | reported_claim | 22 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 391 | $ 303 | |||
2020 | Home Owner Line | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 497 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 54 | ||||
Cumulative number of reported claims | reported_claim | 21 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 326 |
Claims Development - Excess and
Claims Development - Excess and Surplus Lines (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2020USD ($)reported_claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | $ 3,158 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 6,394 | |||||||||
Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 836 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | 430 | |||||||||
All outstanding liabilities before, net of reinsurance | 1 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 407 | |||||||||
2011 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 34 | $ 34 | $ 34 | $ 35 | $ 35 | $ 36 | $ 38 | $ 44 | $ 47 | $ 48 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 1 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 33 | 33 | 33 | 34 | 32 | 30 | 27 | 23 | 14 | $ 8 |
2012 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 35 | 36 | 35 | 36 | 37 | 40 | 49 | 56 | 67 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 1 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 34 | 33 | 32 | 31 | 29 | 25 | 19 | 15 | $ 9 | |
2013 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 41 | 41 | 41 | 42 | 45 | 54 | 64 | 74 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 2 | |||||||||
Cumulative number of reported claims | reported_claim | 2 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 39 | 37 | 34 | 32 | 27 | 20 | 12 | $ 7 | ||
2014 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 59 | 59 | 60 | 64 | 75 | 82 | 95 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 5 | |||||||||
Cumulative number of reported claims | reported_claim | 2 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 51 | 48 | 43 | 37 | 27 | 17 | $ 9 | |||
2015 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 66 | 65 | 67 | 73 | 81 | 96 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 6 | |||||||||
Cumulative number of reported claims | reported_claim | 2 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 54 | 51 | 41 | 29 | 19 | $ 8 | ||||
2016 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 90 | 82 | 84 | 87 | 93 | |||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 13 | |||||||||
Cumulative number of reported claims | reported_claim | 3 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 62 | 51 | 39 | 21 | $ 10 | |||||
2017 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 94 | 95 | 95 | 104 | ||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 15 | |||||||||
Cumulative number of reported claims | reported_claim | 3 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 57 | 41 | 23 | $ 11 | ||||||
2018 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 110 | 109 | 116 | |||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 29 | |||||||||
Cumulative number of reported claims | reported_claim | 3 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 50 | 26 | $ 11 | |||||||
2019 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 135 | 137 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 50 | |||||||||
Cumulative number of reported claims | reported_claim | 3 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 34 | $ 13 | ||||||||
2020 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 172 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 105 | |||||||||
Cumulative number of reported claims | reported_claim | 2 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 16 |
Average Annual Payout (Details)
Average Annual Payout (Details) | Dec. 31, 2020 |
Commercial Insurance | Commercial Casualty Line | |
Short-duration Insurance Contracts, Historical Claims Duration | |
1 | 7.30% |
2 | 14.90% |
3 | 17.90% |
4 | 18.80% |
5 | 12.70% |
6 | 9.10% |
7 | 4.80% |
8 | 3.50% |
9 | 3.00% |
10 | 1.70% |
Commercial Insurance | Workers' Compensation Line | |
Short-duration Insurance Contracts, Historical Claims Duration | |
1 | 25.90% |
2 | 26.30% |
3 | 11.90% |
4 | 6.70% |
5 | 4.10% |
6 | 2.00% |
7 | 1.40% |
8 | 1.20% |
9 | 1.10% |
10 | 0.50% |
Commercial Insurance | Commercial Auto Line | |
Short-duration Insurance Contracts, Historical Claims Duration | |
1 | 39.90% |
2 | 18.60% |
3 | 15.80% |
4 | 11.50% |
5 | 7.00% |
Commercial Insurance | Commercial Property Line | |
Short-duration Insurance Contracts, Historical Claims Duration | |
1 | 65.30% |
2 | 25.80% |
3 | 3.90% |
4 | 2.10% |
5 | 0.10% |
Personal Insurance | Personal Auto | |
Short-duration Insurance Contracts, Historical Claims Duration | |
1 | 64.20% |
2 | 17.30% |
3 | 8.60% |
4 | 4.60% |
5 | 2.00% |
Personal Insurance | Home Owner Line | |
Short-duration Insurance Contracts, Historical Claims Duration | |
1 | 69.30% |
2 | 23.00% |
3 | 4.10% |
4 | 1.40% |
5 | 0.80% |
Excess and Surplus Lines Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration | |
1 | 14.60% |
2 | 14.40% |
3 | 19.20% |
4 | 15.40% |
5 | 11.70% |
6 | 6.90% |
7 | 3.90% |
8 | 2.20% |
9 | 1.00% |
10 | 0.20% |
Life Policy And Investment Co_3
Life Policy And Investment Contract Reservess (Reserve In Addition To The Account Balance Based On Expected No-Lapse Guarantee Benefits And Expected Policy Assessments) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | $ 2,915 | $ 2,835 |
Life Policy Reserves | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,353 | 1,276 |
Life Policy Reserves | Ordinary/Traditional Life | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,301 | 1,226 |
Life Policy Reserves | Other Life Policy Reserves | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 52 | 50 |
Investment contract reserves | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,562 | 1,559 |
Investment contract reserves | Deferred Annuity | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 761 | 760 |
Investment contract reserves | Universal Life | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 647 | 640 |
Investment contract reserves | Structured Settlement Annuity | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 145 | 151 |
Investment contract reserves | Other Investment Contract Reserves | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | $ 9 | $ 8 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Deferred Policy Acquisition Costs And Asset Reconciliation Including The Amortized Deferred Policy Acquisition Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Costs [Roll Forward] | |||
Deferred policy acquisition costs asset at January 1 | $ 774 | $ 738 | $ 670 |
Capitalized deferred policy acquisition costs | 1,145 | 1,095 | 993 |
Amortized deferred policy acquisition costs | (1,106) | (1,034) | (946) |
Shadow deferred policy acquisition costs | (8) | (25) | 21 |
Deferred policy acquisition costs asset at December 31 | 805 | 774 | 738 |
Life Insurance Segment | |||
Deferred Costs [Roll Forward] | |||
Deferred policy acquisition costs asset at January 1 | 262 | 274 | 232 |
Capitalized deferred policy acquisition costs | 58 | 61 | 60 |
Amortized deferred policy acquisition costs | (49) | (48) | (39) |
Shadow deferred policy acquisition costs | (8) | (25) | 21 |
Deferred policy acquisition costs asset at December 31 | 263 | 262 | 274 |
Consolidated Property And Casualty Insurance Entity | |||
Deferred Costs [Roll Forward] | |||
Deferred policy acquisition costs asset at January 1 | 512 | 464 | 438 |
Capitalized deferred policy acquisition costs | 1,087 | 1,034 | 933 |
Amortized deferred policy acquisition costs | (1,057) | (986) | (907) |
Deferred policy acquisition costs asset at December 31 | $ 542 | $ 512 | $ 464 |
Note Payable (Narrative) (Detai
Note Payable (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Disclosure | ||
Number of lines of credit | 1 | |
Aggregate borrowing capacity | $ 300 | |
Accordian feature available amount | 300 | |
Note payable | $ 54 | $ 39 |
Ratio of debt-to-total capital maximum | 0.35 | |
Minimum | ||
Debt Disclosure | ||
Line of credit, interest rate | 1.03% | 2.59% |
Maximum | ||
Debt Disclosure | ||
Line of credit, interest rate | 4.25% | 3.41% |
Long-Term Debt And Lease Obli_3
Long-Term Debt And Lease Obligation (Book Value And Principal Amounts Of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument | ||
Book value | $ 788 | $ 788 |
Principal amount | $ 793 | $ 793 |
6.900% Senior Debentures, Due 2028 | ||
Debt Instrument | ||
Interest rate | 6.90% | 6.90% |
Book value | $ 27 | $ 27 |
Principal amount | $ 28 | $ 28 |
6.920% Senior Debentures, Due 2028 | ||
Debt Instrument | ||
Interest rate | 6.92% | 6.92% |
Book value | $ 391 | $ 391 |
Principal amount | $ 391 | $ 391 |
6.125% Senior Notes, Due 2034 | ||
Debt Instrument | ||
Interest rate | 6.125% | 6.125% |
Book value | $ 370 | $ 370 |
Principal amount | $ 374 | $ 374 |
Long-Term Debt And Lease Obli_4
Long-Term Debt And Lease Obligation (Lease Payments Over Next Five Years) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Long-term Debt and Lease Obligation [Abstract] | |
Finance Lease 2021 | $ 15 |
Finance Lease 2022 | 12 |
Finance Lease 2023 | 10 |
Finance Lease 2024 | 6 |
Finance Lease 2025 | 4 |
Finance Lease 2026 and thereafter | 2 |
Operating Leases 2021 | 2 |
Operating Leases 2022 | 2 |
Operating Leases 2023 | 2 |
Operating Leases 2024 | 2 |
Operating Leases 2025 | 1 |
Operating Leases 2026 and thereafter | 2 |
Total Finance and Operating Lease 2021 | 17 |
Total Finance and Operating Lease 2022 | 14 |
Total Finance and Operating Lease 2023 | 12 |
Total Finance and Operating Lease 2024 | 8 |
Total Finance and Operating Lease 2025 | 5 |
Total Finance and Operating Lease 2026 and thereafter | $ 4 |
Long-Term Debt And Lease Obli_5
Long-Term Debt And Lease Obligation Long-term Debt and Lease Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Long-term Debt and Lease Obligation [Abstract] | ||
Finance Lease, Right-of-Use Asset, Amortization | $ 15 | $ 9 |
Operating Lease, Expense | 4 | 4 |
Total Finance and Operating Lease Cost | 19 | 13 |
Finance Lease, Principal Payments | $ 15 | $ 15 |
Finance Lease, Weighted Average Discount Rate, Percent | 2.62% | 2.96% |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 8 months 1 day | 3 years 7 months 24 days |
Operating Lease, Payments | $ 8 | $ 8 |
Operating Lease, Weighted Average Discount Rate, Percent | 3.65% | 3.69% |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 10 months 2 days | 4 years 8 months 15 days |
Long-Term Debt And Lease Obli_6
Long-Term Debt And Lease Obligation Long-Term Debt and Lease Obligation Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 5 years | |
Total lease liability | $ 57 | $ 57 |
Interest Costs Incurred | $ 3 | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Finance Lease, Term of Contract | 6 years | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Finance Lease, Term of Contract | 3 years |
Shareholders' Equity And Divi_3
Shareholders' Equity And Dividend Restrictions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Declared cash dividends, per share | $ 2.40 | $ 2.24 | $ 2.12 |
Dividend payment without prior regulatory approval, maximum percent of policyholder surplus | 10.00% | ||
Dividend payment without prior regulatory approval, percent of statutory net income for the prior calendar year | 100.00% | ||
Dividends might be paid during next year | $ 583 | ||
The Cincinnati Insurance Company | |||
Cash Dividends Paid to Parent | 550 | $ 625 | $ 500 |
Cincinnati Global | |||
Cash Dividends Paid to Parent | $ 0 | $ 0 |
Shareholders' Equity And Divi_4
Shareholders' Equity And Dividend Restrictions (Change In AOCI Includes Changes In Unrealized Gains And Losses On Investments And Pension Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 | Jan. 01, 2019 | Jan. 01, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income, Before Tax | |||||||
Pension obligations OCI | $ (32) | $ 7 | $ (4) | ||||
Accumulated Other Comprehensive Income, Net of Tax | |||||||
AOCI, balance at the beginning of the period | 448 | ||||||
AOCI, balance at the end of the period | 769 | 448 | |||||
Accumulated Net Unrealized Investment Gain (Loss) | |||||||
Accumulated Other Comprehensive Income, Before Tax | |||||||
AOCI, balance at the beginning of the period | 590 | 46 | 3,540 | ||||
Cumulative effect of new accounting principle, before tax | 0 | 0 | $ (3,155) | ||||
Adjusted AOCI, beginning of period | 590 | 46 | 385 | ||||
OCI before investment gains and losses, net, recognized in net income | 371 | 545 | (334) | ||||
Investment gains and losses, net, recognized in net income | 65 | (1) | (5) | ||||
OCI | 436 | 544 | (339) | ||||
AOCI, balance at the end of the period | 1,026 | 590 | 46 | ||||
Accumulated Other Comprehensive Income, Income Tax | |||||||
AOCI, balance at the beginning of the period | 123 | 9 | 733 | ||||
Cumulative effect of new account principle, tax | 0 | 0 | (652) | ||||
Adjusted AOCI, beginning of period | 123 | 9 | 81 | ||||
OCI before investment gains and losses, net, recognized in net income | 78 | 115 | (71) | ||||
Investment gains and losses, net, recognized in net income | 14 | (1) | (1) | ||||
OCI | 92 | 114 | (72) | ||||
AOCI, balance at the end of the period | 215 | 123 | 9 | ||||
Accumulated Other Comprehensive Income, Net of Tax | |||||||
AOCI, balance at the beginning of the period | 467 | 37 | 2,807 | ||||
Unrealized gains reclassified to retained earnings for ASU 2016-01, after tax | 0 | 0 | (2,503) | ||||
Adjusted AOCI, beginning of period | 467 | 37 | 304 | ||||
OCI before investment gains and losses, net, recognized in net income | 293 | 430 | (263) | ||||
Investment gains and losses, net, recognized in net income | 51 | 0 | (4) | ||||
OCI | 344 | 430 | (267) | ||||
AOCI, balance at the end of the period | 811 | 467 | 37 | ||||
Accumulated Defined Benefit Plans Adjustment | |||||||
Accumulated Other Comprehensive Income, Before Tax | |||||||
AOCI, balance at the beginning of the period | (9) | (16) | (12) | ||||
OCI before investment gains and losses, net, recognized in net income | (35) | 6 | (5) | ||||
Investment gains and losses, net, recognized in net income | 3 | 1 | 1 | ||||
OCI | (32) | 7 | (4) | ||||
AOCI, balance at the end of the period | (41) | (9) | (16) | ||||
Accumulated Other Comprehensive Income, Income Tax | |||||||
AOCI, balance at the beginning of the period | 0 | (2) | (1) | ||||
OCI before investment gains and losses, net, recognized in net income | (7) | 2 | (1) | ||||
Investment gains and losses, net, recognized in net income | 0 | 0 | 0 | ||||
OCI | (7) | 2 | (1) | ||||
AOCI, balance at the end of the period | (7) | 0 | (2) | ||||
Accumulated Other Comprehensive Income, Net of Tax | |||||||
AOCI, balance at the beginning of the period | (9) | (14) | (11) | ||||
OCI before investment gains and losses, net, recognized in net income | (28) | 4 | (4) | ||||
Investment gains and losses, net, recognized in net income | 3 | 1 | 1 | ||||
OCI | (25) | 5 | (3) | ||||
AOCI, balance at the end of the period | (34) | (9) | (14) | ||||
Accumulated Net Unrealized Gain (Loss) on Deferred Costs, Reserves And Other | |||||||
Accumulated Other Comprehensive Income, Before Tax | |||||||
AOCI, balance at the beginning of the period | (13) | (1) | (10) | ||||
OCI before investment gains and losses, net, recognized in net income | 3 | (15) | (3) | ||||
Investment gains and losses, net, recognized in net income | 0 | 3 | 12 | ||||
OCI | 3 | (12) | 9 | ||||
AOCI, balance at the end of the period | (10) | (13) | (1) | ||||
Accumulated Other Comprehensive Income, Income Tax | |||||||
AOCI, balance at the beginning of the period | (3) | 0 | (2) | ||||
OCI before investment gains and losses, net, recognized in net income | 1 | (3) | (1) | ||||
Investment gains and losses, net, recognized in net income | 0 | 0 | 3 | ||||
OCI | 1 | (3) | 2 | ||||
AOCI, balance at the end of the period | (2) | (3) | 0 | ||||
Accumulated Other Comprehensive Income, Net of Tax | |||||||
AOCI, balance at the beginning of the period | (10) | (1) | (8) | ||||
OCI before investment gains and losses, net, recognized in net income | 2 | (12) | (2) | ||||
Investment gains and losses, net, recognized in net income | 0 | 3 | 9 | ||||
OCI | 2 | (9) | 7 | ||||
AOCI, balance at the end of the period | (8) | (10) | (1) | ||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Accumulated Other Comprehensive Income, Before Tax | |||||||
AOCI, balance at the beginning of the period | 568 | 29 | 3,518 | ||||
Cumulative effect of new accounting principle, before tax | $ 0 | $ 0 | $ (3,155) | ||||
Adjusted AOCI, beginning of period | 568 | 29 | 363 | ||||
Investments OCI | 436 | 544 | (339) | ||||
Pension obligations OCI | (32) | 7 | (4) | ||||
Life deferred acquisition costs, life policy reserves and other OCI | 3 | (12) | 9 | ||||
Total OCI | 407 | 539 | (334) | ||||
AOCI, balance at the end of the period | 975 | 568 | 29 | ||||
Accumulated Other Comprehensive Income, Income Tax | |||||||
AOCI, balance at the beginning of the period | 120 | 7 | 730 | ||||
Cumulative effect of new account principle, tax | 0 | 0 | (652) | ||||
Adjusted AOCI, beginning of period | 120 | 7 | 78 | ||||
Investments OCI | 92 | 114 | (72) | ||||
Pension obligations OCI | (7) | 2 | (1) | ||||
Life deferred acquisition costs, life policy reserves and other OCI | 1 | (3) | 2 | ||||
Total OCI | 86 | 113 | (71) | ||||
AOCI, balance at the end of the period | 206 | 120 | 7 | ||||
Accumulated Other Comprehensive Income, Net of Tax | |||||||
AOCI, balance at the beginning of the period | 448 | 22 | 2,788 | ||||
Unrealized gains reclassified to retained earnings for ASU 2016-01, after tax | 0 | 0 | $ 0 | $ 0 | $ (2,503) | (2,503) | |
Adjusted AOCI, beginning of period | 448 | 22 | $ 285 | ||||
Investments OCI | 344 | 430 | (267) | ||||
Pension obligations OCI | (25) | 5 | (3) | ||||
Life deferred acquisition costs, life policy reserves and other OCI | 2 | (9) | 7 | ||||
Total OCI | 321 | 426 | (263) | ||||
AOCI, balance at the end of the period | $ 769 | $ 448 | $ 22 |
Reinsurance Reinsurance (Writte
Reinsurance Reinsurance (Written Consolidated Property Casualty Insurance Premiums On Assumed and Ceded Business) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Direct premiums earned | $ 5,985 | $ 5,681 | $ 5,251 |
Assumed premiums earned | 285 | 199 | 149 |
Ceded premiums earned | (290) | (276) | (230) |
Incurred loss and loss expenses | 4,134 | 3,638 | 3,490 |
Consolidated Property And Casualty Insurance Entity | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Direct premiums written | 5,756 | 5,477 | 5,018 |
Assumed premiums written | 335 | 244 | 173 |
Ceded premiums written | (227) | (205) | (161) |
Net written premiums | 5,864 | 5,516 | 5,030 |
Direct premiums earned | 5,623 | 5,340 | 4,931 |
Assumed premiums earned | 285 | 199 | 149 |
Ceded premiums earned | (217) | (205) | (160) |
Earned premiums | 5,691 | 5,334 | 4,920 |
Direct incurred loss and loss expenses | 3,699 | 3,402 | 3,188 |
Assumed incurred loss and loss expenses | 184 | 117 | 125 |
Ceded incurred loss and loss expenses | (46) | (167) | (90) |
Incurred loss and loss expenses | $ 3,837 | $ 3,352 | $ 3,223 |
Reinsurance (Earned Life Insura
Reinsurance (Earned Life Insurance Premiums On Ceded Business) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Direct premiums earned | $ 5,985 | $ 5,681 | $ 5,251 |
Ceded earned premiums | (290) | (276) | (230) |
Insurance losses and contract holders' benefits | 4,134 | 3,638 | 3,490 |
Life Insurance Segment | |||
Direct premiums earned | 362 | 341 | 320 |
Ceded earned premiums | (73) | (71) | (70) |
Net earned premiums | 289 | 270 | 250 |
Direct contract holders' benefits incurred | 359 | 359 | 328 |
Ceded contract holders' benefits incurred | (62) | (73) | (61) |
Insurance losses and contract holders' benefits | $ 297 | $ 286 | $ 267 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle | ||||
Income tax benefit for difference in tax rate | $ 0 | $ 0 | $ 50 | |
Unrecognized Tax Benefits | 34 | 34 | 34 | $ 0 |
Income taxes refund received | 0 | 94 | $ 0 | |
Net deferred tax assets, valuation allowance | 56 | 41 | ||
Deferred tax benefit due to tax rate change | 19.90% | |||
Cincinnati Global | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Net deferred tax assets | 56 | |||
Net deferred tax assets, valuation allowance | 56 | 41 | $ 0 | |
Current year operations | 15 | (14) | ||
Cincinnati Global | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Increase (Decrease) of deferred tax assets | 15 | |||
Current year operations | 15 | |||
Cincinnati Global | Geographic Distribution, Foreign [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Operating Loss Carryforwards | 108 | 127 | ||
Cincinnati Global | Geographic Distribution, Domestic [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Operating Loss Carryforwards | $ 26 | $ 20 |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Unearned premiums | $ 119 | $ 113 |
Loss and loss expense reserves | 81 | 66 |
Deferred international earnings | 45 | 51 |
Net operating loss on international earnings | 26 | 4 |
Other | 41 | 39 |
Deferred tax assets before valuation allowance | 312 | 273 |
Valuation allowance for international operations | 56 | 41 |
Deferred tax assets net of valuation allowance | 256 | 232 |
Deferred tax liabilities: | ||
Investment gains and other, net | 1,240 | 995 |
Deferred acquisition costs | 143 | 139 |
Life policy reserves | 121 | 120 |
Investments | 13 | 23 |
Other | 38 | 34 |
Total gross deferred tax liabilities | 1,555 | 1,311 |
Net deferred income tax liability | $ 1,299 | $ 1,079 |
Income Taxes Schedule of Income
Income Taxes Schedule of Income before Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States income before tax | $ 1,521 | $ 2,440 | $ 251 | ||||||||
International income before income taxes | (22) | 32 | 0 | ||||||||
Income (loss) before income taxes | $ 1,316 | $ 614 | $ 1,145 | $ (1,576) | $ 781 | $ 294 | $ 530 | $ 867 | $ 1,499 | $ 2,472 | $ 251 |
Income Taxes The Provision (Ben
Income Taxes The Provision (Benefit) of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current federal tax | $ 147 | $ 137 | $ 11 |
Current international tax | 0 | (5) | 0 |
Total current tax | 147 | 132 | 11 |
Deferred federal tax | 136 | 338 | (47) |
Deferred international tax | 0 | 5 | 0 |
Deferred income tax expense | 136 | 343 | (47) |
Total provision (benefit) for income taxes | $ 283 | $ 475 | $ (36) |
Income Taxes (Differences Betwe
Income Taxes (Differences Between The 21 Percent Statutory Income Tax Rate And Effective Income Tax Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Tax at statutory rate: | $ 315 | $ 519 | $ 53 | |
Tax at statutory rate (percentage): | 21.00% | 21.00% | 21.00% | 35.00% |
Increase (decrease) resulting from: | ||||
Tax-exempt income from municipal bonds | $ (20) | $ (19) | $ (20) | |
Dividend received exclusion | (17) | (16) | (15) | |
Effective Income Tax Rate Reconciliation, Tax Accounting Method Changes, Amount | 0 | 0 | (50) | |
Other | 5 | (9) | (4) | |
Total provision (benefit) for income taxes | $ 283 | $ 475 | $ (36) | |
Tax at statutory rate: | ||||
Tax-exempt income from municipal bonds (percentage) | (1.30%) | (0.80%) | (8.00%) | |
Dividend received exclusion (percentage) | (1.10%) | (0.60%) | (6.00%) | |
Effective Income Tax Rate Reconciliation, Tax Accounting Method Changes, Percent | 0.00% | 0.00% | (19.90%) | |
Deferred tax benefit due to tax rate change | 19.90% | |||
Other (percentage) | 0.30% | (0.40%) | (1.40%) | |
Effective tax, percentage | 18.90% | 19.20% | (14.30%) |
Income Taxes - Reconciliation U
Income Taxes - Reconciliation Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits, January 1 | $ 34 | $ 34 | $ 0 |
Gross increase in prior year positions | 0 | 0 | 0 |
Gross decrease in prior year positions | 0 | 0 | 0 |
Gross increase in current year positions | 0 | 0 | 34 |
Settlements with tax authorities | 0 | 0 | 0 |
Lapse of statute of limitations | 0 | 0 | 0 |
Gross unrecognized tax benefits, December 31 | $ 34 | $ 34 | $ 34 |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Cincinnati Global Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation Allowance | ||
Valuation allowance at January 1 | $ 41 | |
Valuation allowance at December 31 | 56 | $ 41 |
Cincinnati Global | ||
Valuation Allowance | ||
Valuation allowance at January 1 | 41 | 0 |
Acquisition accounting amount | 0 | 55 |
Current year operations | 15 | (14) |
Valuation allowance at December 31 | $ 56 | $ 41 |
Net Income Per Common Share (Ca
Net Income Per Common Share (Calculations For Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||||||||||
Net Income | $ 1,049 | $ 484 | $ 909 | $ (1,226) | $ 626 | $ 248 | $ 428 | $ 695 | $ 1,216 | $ 1,997 | $ 287 |
Denominator: | |||||||||||
Basic weighted-average common shares outstanding | 161.2 | 163.2 | 163.2 | ||||||||
Diluted weighted-average shares | 162.4 | 165.1 | 164.5 | ||||||||
Earnings per share: | |||||||||||
Basic (in usd per share) | $ 6.52 | $ 3.01 | $ 5.65 | $ (7.56) | $ 3.84 | $ 1.51 | $ 2.62 | $ 4.27 | $ 7.55 | $ 12.24 | $ 1.76 |
Diluted (in usd per share) | $ 6.47 | $ 2.99 | $ 5.63 | $ (7.56) | $ 3.79 | $ 1.49 | $ 2.59 | $ 4.22 | $ 7.49 | $ 12.10 | $ 1.75 |
Number of anti-dilutive share-based awards | 1.4 | 0 | 1.3 | ||||||||
Stock Options | |||||||||||
Denominator: | |||||||||||
Effect of stock-based awards | 0.7 | 1.2 | 0.8 | ||||||||
Restricted Stock Units (RSUs) | |||||||||||
Denominator: | |||||||||||
Effect of stock-based awards | 0.5 | 0.7 | 0.5 |
Employee Retirement Benefits (N
Employee Retirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2008 | |
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Minimum participant age to elect | 40 years | |||
Employer discretionary contribution amount | $ 22 | $ 19 | $ 18 | |
Requisite service period | 3 years | |||
Actual return on plan assets | 11.40% | 24.50% | ||
Pension plan assets at fair value | $ 357 | $ 354 | 318 | |
Employee Stock | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Pension plan assets, shares | 29,776 | |||
Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Matching contribution to defined contribution plan | 6.00% | |||
Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Percentage of increase decrease in benefit obligations discount rate | 0.72% | |||
Change In Net Benefit Cost Discount Rate Assumption | 0.94% | |||
Pension Plan | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Cash dividends paid (less than $1 million) | $ 1 | 1 | ||
Supplemental Employee Retirement Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Accrued employee benefit | $ 10 | 11 | ||
Percentage of increase decrease in benefit obligations discount rate | 0.81% | |||
Change In Net Benefit Cost Discount Rate Assumption | 0.92% | |||
Expected contribution by employer during 2021 | $ 8 | |||
Top Hat Savings Plan - Mutual Funds and Common Equities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
CFC Top Hat Savings Plan | 51 | 45 | ||
Top Hat | Top Hat Savings Plan - Mutual Funds and Common Equities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
CFC Top Hat Savings Plan | 51 | 45 | ||
Top Hat | Top Hat Savings Plan - Mutual Funds and Common Equities | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Employer discretionary contribution amount | $ 1 | $ 1 | $ 1 | |
Domestic Corporate Debt Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Pension plan assets, shares | 202,337 | 232,113 | ||
Pension plan assets, fair value | $ 18 | $ 24 | ||
Equity Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 82.00% | |||
Pension plan assets at fair value | $ 266 | 260 | ||
Equity Securities | Information Technology Sector | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 26.00% | |||
Equity Securities | Financial Services Sector | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 20.00% | |||
Equity Securities | Industrial Sector | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 13.00% | |||
Equity Securities | Healthcare Sector | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 12.00% | |||
Equity Securities | All Remaining Sectors | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 10.00% | |||
Fixed Maturities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Pension plan assets at fair value | $ 60 | 77 | ||
Fixed Maturities | United States Government | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 9.00% | |||
Pension plan assets at fair value | $ 31 | 25 | ||
Fixed Maturities | Domestic Corporate Debt Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 6.00% | |||
Pension plan assets at fair value | $ 20 | 27 | ||
Fixed Maturities | States, Municipalities and Political Subdivisions | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 3.00% | |||
Pension plan assets at fair value | $ 9 | 25 | ||
Cash and Cash Equivalents | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Pension plan assets at fair value | $ 31 | $ 17 |
Employee Retirement Benefits (W
Employee Retirement Benefits (Weighted-Average Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan | |||
Weighted average assumptions used to determine benefit obligations | |||
Benefit obligation discount rate | 2.68% | 3.40% | |
Summary of the weighted average assumtions used to determine net periodic benefit cost | |||
Discount rate | 3.40% | 4.34% | 3.73% |
Expected return on plan assets | 7.00% | 7.00% | 7.25% |
Pension Plan | Minimum | |||
Weighted average assumptions used to determine benefit obligations | |||
Benefit obligation rate of compensation increase | 2.25% | 2.25% | |
Summary of the weighted average assumtions used to determine net periodic benefit cost | |||
Rate of compensation increase | 2.25% | 2.25% | 2.75% |
Pension Plan | Maximum | |||
Weighted average assumptions used to determine benefit obligations | |||
Benefit obligation rate of compensation increase | 3.25% | 3.25% | |
Summary of the weighted average assumtions used to determine net periodic benefit cost | |||
Rate of compensation increase | 3.25% | 3.25% | 3.25% |
Supplemental Employee Retirement Plan | |||
Weighted average assumptions used to determine benefit obligations | |||
Benefit obligation discount rate | 2.52% | 3.33% | |
Summary of the weighted average assumtions used to determine net periodic benefit cost | |||
Discount rate | 3.33% | 4.25% | 3.61% |
Supplemental Employee Retirement Plan | Minimum | |||
Weighted average assumptions used to determine benefit obligations | |||
Benefit obligation rate of compensation increase | 2.25% | 2.25% | |
Summary of the weighted average assumtions used to determine net periodic benefit cost | |||
Rate of compensation increase | 2.25% | 2.25% | 2.75% |
Supplemental Employee Retirement Plan | Maximum | |||
Weighted average assumptions used to determine benefit obligations | |||
Benefit obligation rate of compensation increase | 3.25% | 3.25% | |
Summary of the weighted average assumtions used to determine net periodic benefit cost | |||
Rate of compensation increase | 3.25% | 3.25% | 3.25% |
Employee Retirement Benefits (B
Employee Retirement Benefits (Benefit Obligation Activity Using An Actuarial Measurement Date For Qualified Plan And SERP) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in projected benefit obligation: | |||
Benefit obligation, January 1 | $ 350 | $ 318 | |
Service cost | 9 | 8 | $ 11 |
Interest cost | 12 | 13 | 13 |
Actuarial loss | 51 | 45 | |
Benefits paid | (35) | (34) | |
Projected benefit obligation, December 31 | 387 | 350 | 318 |
Change in plan assets: | |||
Fair value of plan assets, January 1 | 354 | 318 | |
Actual return on plan assets | 34 | 70 | |
Employer contribution | 4 | 0 | |
Benefits paid | (35) | (34) | |
Fair value of plan assets, December 31 | 357 | 354 | $ 318 |
Unfunded status: | |||
Funded status, December 31 | (30) | 4 | |
Accumulated benefit obligation | $ 360 | $ 327 |
Employee Retirement Benefits (R
Employee Retirement Benefits (Reconciliation Of The Funded Status For Qualified Plan And SERP) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | ||
Other assets | $ 4 | |
Other liabilities | $ (30) | |
Total | (30) | 4 |
Pension amounts recognized in accumulated other comprehensive income: | ||
Net actuarial loss | 41 | 9 |
Total | $ 41 | $ 9 |
Employee Retirement Benefits (C
Employee Retirement Benefits (Components Of Net Periodic Benefit Cost As Well As Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Income For Qualified Plan And SERP) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 9 | $ 8 | $ 11 |
Interest cost | 12 | 13 | 13 |
Expected return on plan assets | (21) | (20) | (22) |
Amortization of actuarial loss and prior service cost | 3 | 1 | 1 |
Other | 3 | 1 | 2 |
Net periodic benefit cost | 6 | 3 | 5 |
Current year actuarial (gain) loss | 38 | (5) | 7 |
Amortization of actuarial loss | (6) | (2) | (3) |
Total recognized in other comprehensive (income) loss | 32 | (7) | 4 |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ 38 | $ (4) | $ 9 |
Employee Retirement Benefits (F
Employee Retirement Benefits (Fair Value Hierarchy Of Assets Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | $ 357 | $ 354 | $ 318 |
Fixed Maturities | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 60 | 77 | |
Fixed Maturities | Level 1 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 31 | 25 | |
Fixed Maturities | Level 2 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 29 | 52 | |
Fixed Maturities | Level 3 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Fixed Maturities | States, Municipalities and Political Subdivisions | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 9 | 25 | |
Fixed Maturities | States, Municipalities and Political Subdivisions | Level 1 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Fixed Maturities | States, Municipalities and Political Subdivisions | Level 2 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 9 | 25 | |
Fixed Maturities | States, Municipalities and Political Subdivisions | Level 3 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Fixed Maturities | Domestic Corporate Debt Securities | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 20 | 27 | |
Fixed Maturities | Domestic Corporate Debt Securities | Level 1 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Fixed Maturities | Domestic Corporate Debt Securities | Level 2 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 20 | 27 | |
Fixed Maturities | Domestic Corporate Debt Securities | Level 3 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Fixed Maturities | United States Government | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 31 | 25 | |
Fixed Maturities | United States Government | Level 1 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 31 | 25 | |
Fixed Maturities | United States Government | Level 2 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Fixed Maturities | United States Government | Level 3 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Equity Securities | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 266 | 260 | |
Equity Securities | Level 1 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 266 | 260 | |
Equity Securities | Level 2 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Equity Securities | Level 3 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Fixed Maturities And Equity Securities | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 326 | 337 | |
Fixed Maturities And Equity Securities | Level 1 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 297 | 285 | |
Fixed Maturities And Equity Securities | Level 2 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 29 | 52 | |
Fixed Maturities And Equity Securities | Level 3 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | $ 0 | $ 0 |
Employee Retirement Benefits (E
Employee Retirement Benefits (Expected Future Benefit Payments For Qualified Plan And SERP) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Retirement Benefits [Abstract] | |
Expected future benefit payments, 2021 | $ 49 |
Expected future benefit payments, 2022 | 22 |
Expected future benefit payments, 2023 | 25 |
Expected future benefit payments, 2024 | 27 |
Expected future benefit payments, 2025 | 29 |
Expected future benefit payments, 2026 - 2030 | $ 163 |
Statutory Accounting Informat_3
Statutory Accounting Information (Schedule Of Statutory Net Income And Statutory Surplus (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
The Cincinnati Insurance Company | |||
Statutory Accounting Practices | |||
SAP net income (loss) | $ 466 | $ 558 | $ 626 |
Capital and surplus | 5,838 | 5,620 | |
The Cincinnati Casualty Company | |||
Statutory Accounting Practices | |||
SAP net income (loss) | 14 | 13 | 16 |
Capital and surplus | 456 | 437 | |
The Cincinnati Indemnity Company | |||
Statutory Accounting Practices | |||
SAP net income (loss) | 3 | 3 | 5 |
Capital and surplus | 115 | 111 | |
The Cincinnati Specialty Underwriters Insurance Company | |||
Statutory Accounting Practices | |||
SAP net income (loss) | 42 | 62 | 69 |
Capital and surplus | 528 | 526 | |
The Cincinnati Life Insurance Company | |||
Statutory Accounting Practices | |||
SAP net income (loss) | 27 | 19 | $ 0 |
Capital and surplus | $ 241 | $ 204 |
Transactions With Affliated Par
Transactions With Affliated Parties (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction | |||
Payment for commissions | $ 7 | $ 8 | $ 7 |
Earned premiums | 5,980 | 5,604 | 5,170 |
Affiliated Parties | |||
Related Party Transaction | |||
Earned premiums | $ 45 | $ 48 | $ 45 |
Share-Based Associate Compens_3
Share-Based Associate Compensation Plans (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)peers_exceededPeerscompensation_plansshares | Dec. 31, 2019USD ($)Peerspeers_exceededshares | Dec. 31, 2018USD ($)peers_exceededPeersshares | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of equity compensation plans | compensation_plans | 4 | ||
Maximum number of shares awarded to each full-time employee for their service | shares | 10 | ||
Number of peers exceeded | peers_exceeded | 8 | 5 | 4 |
Number of peers in peer group | Peers | 9 | 9 | 9 |
Share based compensation | $ 25 | $ 24 | $ 23 |
Tax benefit from compensation expense | 6 | 6 | 5 |
Options exercised, intrinsic value | 15 | 26 | 15 |
Options vested, intrinsic value | 7 | 23 | 6 |
Unrecognized compensation costs related to non-vested awards | $ 34 | ||
Expected weighted-average period to recognize the unrecognized compensation costs related to non-vested awards | 1 year 8 months 12 days | ||
Proceeds from stock options exercised | 11 | 9 | |
Shares of common stock granted in period (in shares) | shares | 508,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Awards exercise peirod | 10 years | ||
Awards vesting period | 3 years | ||
Proceeds from stock options exercised | $ 7 | $ 11 | $ 9 |
Shares repurchased | shares | 50,751 | 103,237 | 69,649 |
Shares repurchased, value | $ 5 | $ 9 | $ 5 |
Weighted average remaining contractual term | 8 years 4 months 17 days | ||
Shares authorized to be granted under the shareholder-approved plans | shares | 17,300,000 | ||
Shares available for future issuance under the plans | shares | 7,100,000 | ||
Stock Options | Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares of common stock granted in period (in shares) | shares | 12,928 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 2.15% | 2.61% | 2.81% |
Weighted-average expected term | 2 years 10 months 9 days | 2 years 10 months 9 days | 2 years 10 months 20 days |
Risk-free rates | 1.30% | 2.48% | 2.22% |
Performance Shares | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares, Issued | shares | 56,722 | 20,549 | |
Awards vesting period | 3 years | 3 years | |
Risk-free rates, minimum | 0.00% | 0.00% | 0.00% |
Risk-free rates, maximum | 200.00% | 200.00% | 200.00% |
share based performance metric for performance shares | 3 years | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Intrinsic Value Aggregate | $ 5 | $ 2 | $ 6 |
Service Based Shares | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Awards vesting period | 3 years | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Intrinsic Value Aggregate | $ 30 | $ 25 | $ 24 |
Share-Based Associate Compens_4
Share-Based Associate Compensation Plans (Assumptions Used In Grants Issued) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Options | |||
Weighted-average fair value of options granted during the period | $ 15.45 | $ 11.73 | $ 9.87 |
Stock Options | Minimum | |||
Weighted-average expected term | 7 years | 7 years | 7 years |
Expected volatility | 16.89% | 14.49% | 15.04% |
Dividend yield | 2.15% | 2.61% | 2.98% |
Risk-free rates | 1.40% | 2.62% | 2.77% |
Stock Options | Maximum | |||
Weighted-average expected term | 8 years | 8 years | 8 years |
Expected volatility | 17.13% | 15.39% | 15.10% |
Dividend yield | 2.15% | 2.61% | 2.98% |
Risk-free rates | 1.41% | 2.64% | 2.83% |
Performance Based Shares | |||
Weighted-average expected term | 2 years 10 months 9 days | 2 years 10 months 9 days | 2 years 10 months 20 days |
Dividend yield | 2.15% | 2.61% | 2.81% |
Risk-free rates | 1.30% | 2.48% | 2.22% |
Performance Based Shares | Minimum | |||
Expected volatility | 15.88% | 15.10% | 16.01% |
Performance Based Shares | Maximum | |||
Expected volatility | 25.13% | 25.00% | 26.32% |
Share-Based Associate Compens_5
Share-Based Associate Compensation Plans (Stock Option Information) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Shares | |
Outstanding at beginning of year (in shares) | shares | 3,437 |
Granted (in shares) | shares | 508 |
Exercised (in shares) | shares | (274) |
Forfeited or expired (in shares) | shares | (70) |
Outstanding at end of year (in shares) | shares | 3,601 |
Options exercisable at end of period (in shares) | shares | 2,509 |
Weighted-average exercise price | |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 63.99 |
Granted (in dollars per share) | $ / shares | 111.53 |
Exercised (in dollars per share) | $ / shares | 41.86 |
Forfeited or expired (in dollars per share) | $ / shares | 55.60 |
Outstanding at end of year (in dollars per share) | $ / shares | 72.55 |
Options exercisable at end of period (in dollars per share) | $ / shares | $ 63.11 |
Aggregate intrinsic value | |
Outstanding at end of year | $ | $ 66 |
Options exercisable at end of period | $ | $ 61 |
Weighted-average remaining contractual life | |
Outstanding option shares at December 31, 2020 | 6 years 3 days |
Options exercisable at end of period | 4 years 11 months 19 days |
Share-Based Associate Compens_6
Share-Based Associate Compensation Plans (Restricted Stock Unit Information) (Details) - Restricted Stock Units (RSUs) shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Service Based Shares | |
Nonvested shares | |
Beginning balance (in shares) | shares | 783 |
Granted (in shares) | shares | 204 |
Vested (in shares) | shares | (269) |
Forfeited or canceled (in shares) | shares | (22) |
Ending balance (in shares) | shares | 696 |
Weighted-average grant-date fair value | |
Beginning balance (in dollars per share) | $ / shares | $ 70.27 |
Granted (in dollars per share) | $ / shares | 104.81 |
Vested (in dollars per share) | $ / shares | 66.53 |
Forfeited or canceled (in dollars per share) | $ / shares | 78.96 |
Ending balance (in dollars per share) | $ / shares | $ 81.56 |
Performance Based Shares | |
Nonvested shares | |
Beginning balance (in shares) | shares | 165 |
Granted (in shares) | shares | 38 |
Vested (in shares) | shares | (56) |
Forfeited or canceled (in shares) | shares | 0 |
Ending balance (in shares) | shares | 147 |
Weighted-average grant-date fair value | |
Beginning balance (in dollars per share) | $ / shares | $ 64.23 |
Granted (in dollars per share) | $ / shares | 111.77 |
Vested (in dollars per share) | $ / shares | 43.26 |
Forfeited or canceled (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 84.64 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)segmentindustry | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information | |||||||||||
Earned premiums | $ 5,980 | $ 5,604 | $ 5,170 | ||||||||
Fee revenues | 11 | 15 | 15 | ||||||||
Other Income | 10 | 9 | 5 | ||||||||
Total revenues | $ 2,694 | $ 2,227 | $ 2,714 | $ (99) | $ 2,152 | $ 1,700 | $ 1,913 | $ 2,159 | 7,536 | 7,924 | 5,407 |
Net Investment Income | 670 | 646 | 619 | ||||||||
Investment gains and losses, net | 865 | 1,650 | (402) | ||||||||
Income (loss) before income taxes | 1,316 | $ 614 | $ 1,145 | $ (1,576) | 781 | $ 294 | $ 530 | $ 867 | 1,499 | 2,472 | 251 |
Identifiable assets | 27,542 | 25,408 | $ 27,542 | 25,408 | |||||||
Number of Industries Operated In | industry | 2 | ||||||||||
Number of Insurance Segments | segment | 4 | ||||||||||
Consolidated Property And Casualty Insurance Entity | |||||||||||
Segment Reporting Information | |||||||||||
Identifiable assets | 3,838 | 3,437 | $ 3,838 | 3,437 | |||||||
Life Insurance Segment | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 289 | 270 | 250 | ||||||||
Identifiable assets | 1,661 | 1,516 | 1,661 | 1,516 | |||||||
Investments Segment | |||||||||||
Segment Reporting Information | |||||||||||
Identifiable assets | 21,332 | 19,583 | 21,332 | 19,583 | |||||||
Corporate and Other [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Identifiable assets | $ 711 | $ 872 | 711 | 872 | |||||||
Operating Segments | Commercial Insurance | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 3,476 | 3,319 | 3,218 | ||||||||
Fee revenues | 3 | 5 | 5 | ||||||||
Total revenues | 3,479 | 3,324 | 3,223 | ||||||||
Income (loss) before income taxes | 64 | 241 | 151 | ||||||||
Operating Segments | Commercial Insurance | Commercial Casualty Line | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 1,165 | 1,102 | 1,075 | ||||||||
Operating Segments | Commercial Insurance | Commercial Property Line | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 1,010 | 958 | 920 | ||||||||
Operating Segments | Commercial Insurance | Commercial Auto Line | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 755 | 707 | 664 | ||||||||
Operating Segments | Commercial Insurance | Workers' Compensation Line | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 271 | 300 | 324 | ||||||||
Operating Segments | Commercial Insurance | Other Commercial Lines | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 275 | 252 | 235 | ||||||||
Operating Segments | Personal Insurance | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 1,463 | 1,404 | 1,336 | ||||||||
Fee revenues | 4 | 4 | 5 | ||||||||
Total revenues | 1,467 | 1,408 | 1,341 | ||||||||
Income (loss) before income taxes | 47 | 8 | (20) | ||||||||
Operating Segments | Personal Insurance | Personal Auto | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 615 | 621 | 614 | ||||||||
Operating Segments | Personal Insurance | Home Owner Line | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 658 | 607 | 563 | ||||||||
Operating Segments | Personal Insurance | Other Personal Lines | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 190 | 176 | 159 | ||||||||
Operating Segments | Excess and Surplus Lines Insurance | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 325 | 278 | 234 | ||||||||
Fee revenues | 2 | 2 | 1 | ||||||||
Total revenues | 327 | 280 | 235 | ||||||||
Income (loss) before income taxes | 34 | 53 | 63 | ||||||||
Operating Segments | Life Insurance Segment | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 289 | 270 | 250 | ||||||||
Fee revenues | 2 | 4 | 4 | ||||||||
Total revenues | 291 | 274 | 254 | ||||||||
Income (loss) before income taxes | 11 | 1 | 8 | ||||||||
Operating Segments | Investments Segment | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 1,535 | 2,296 | 217 | ||||||||
Net Investment Income | 670 | 646 | 619 | ||||||||
Investment gains and losses, net | 865 | 1,650 | (402) | ||||||||
Income (loss) before income taxes | 1,433 | 2,197 | 121 | ||||||||
Corporate, Non-Segment | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 437 | 342 | 137 | ||||||||
Corporate, Non-Segment | Reinsurance assumed and other non segment | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 427 | 333 | 132 | ||||||||
Corporate, Non-Segment | Corporate and Other [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Other Income | 10 | 9 | 5 | ||||||||
Income (loss) before income taxes | $ (90) | $ (28) | $ (72) |
Quarterly Supplementary Data (D
Quarterly Supplementary Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 2,694 | $ 2,227 | $ 2,714 | $ (99) | $ 2,152 | $ 1,700 | $ 1,913 | $ 2,159 | $ 7,536 | $ 7,924 | $ 5,407 |
Income (loss) before income taxes | 1,316 | 614 | 1,145 | (1,576) | 781 | 294 | 530 | 867 | 1,499 | 2,472 | 251 |
Net Income (Loss) Attributable to Parent | $ 1,049 | $ 484 | $ 909 | $ (1,226) | $ 626 | $ 248 | $ 428 | $ 695 | $ 1,216 | $ 1,997 | $ 287 |
Basic (in usd per share) | $ 6.52 | $ 3.01 | $ 5.65 | $ (7.56) | $ 3.84 | $ 1.51 | $ 2.62 | $ 4.27 | $ 7.55 | $ 12.24 | $ 1.76 |
Diluted (in usd per share) | $ 6.47 | $ 2.99 | $ 5.63 | $ (7.56) | $ 3.79 | $ 1.49 | $ 2.59 | $ 4.22 | $ 7.49 | $ 12.10 | $ 1.75 |
Summary of Investments Other _2
Summary of Investments Other Than Investments In Related Parties (Details) $ in Millions | Dec. 31, 2020USD ($) |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | $ 15,587 |
Fair value | 0 |
Balance sheet | 21,542 |
Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 11,312 |
Fair value | 12,338 |
Balance sheet | 12,338 |
Equity Securities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 3,927 |
Fair value | 8,856 |
Balance sheet | 8,856 |
Other than Securities Investment | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 348 |
Fair value | 0 |
Balance sheet | 348 |
States, Municipalities and Political Subdivisions | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 4,604 |
Fair value | 4,997 |
Balance sheet | 4,997 |
States, Municipalities and Political Subdivisions | Fixed Maturities | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 53 |
Fair value | 52 |
Balance sheet | 52 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 3,346 |
Fair value | 3,638 |
Balance sheet | 3,638 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Casualty Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 219 |
Fair value | 238 |
Balance sheet | 238 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Indemnity Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 48 |
Fair value | 52 |
Balance sheet | 52 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 357 |
Fair value | 387 |
Balance sheet | 387 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Specialty Underwriters Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 580 |
Fair value | 629 |
Balance sheet | 629 |
States, Municipalities and Political Subdivisions | Fixed Maturities | CSU Producers Resources Inc. | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1 |
Fair value | 1 |
Balance sheet | 1 |
United States Government | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 115 |
Fair value | 120 |
Balance sheet | 120 |
United States Government | Fixed Maturities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 65 |
Fair value | 70 |
Balance sheet | 70 |
United States Government | Fixed Maturities | The Cincinnati Casualty Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1 |
Fair value | 1 |
Balance sheet | 1 |
United States Government | Fixed Maturities | The Cincinnati Indemnity Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1 |
Fair value | 1 |
Balance sheet | 1 |
United States Government | Fixed Maturities | Cincinnati Global | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 48 |
Fair value | 48 |
Balance sheet | 48 |
Foreign Government | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 29 |
Fair value | 29 |
Balance sheet | 29 |
Foreign Government | Fixed Maturities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 10 |
Fair value | 10 |
Balance sheet | 10 |
Foreign Government | Fixed Maturities | Cincinnati Global | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 19 |
Fair value | 19 |
Balance sheet | 19 |
Government-Sponsored Enterprises | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 12 |
Fair value | 12 |
Balance sheet | 12 |
Government-Sponsored Enterprises | Fixed Maturities | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 11 |
Fair value | 11 |
Balance sheet | 11 |
Government-Sponsored Enterprises | Fixed Maturities | Cincinnati Global | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1 |
Fair value | 1 |
Balance sheet | 1 |
All Other Corporate Bonds | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 6,552 |
Fair value | 7,180 |
Balance sheet | 7,180 |
All Other Corporate Bonds | Fixed Maturities | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 5 |
Fair value | 5 |
Balance sheet | 5 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 2,964 |
Fair value | 3,211 |
Balance sheet | 3,211 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Casualty Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 103 |
Fair value | 110 |
Balance sheet | 110 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Indemnity Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 30 |
Fair value | 33 |
Balance sheet | 33 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 3,192 |
Fair value | 3,540 |
Balance sheet | 3,540 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Specialty Underwriters Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 189 |
Fair value | 211 |
Balance sheet | 211 |
All Other Corporate Bonds | Fixed Maturities | Cincinnati Global | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 68 |
Fair value | 69 |
Balance sheet | 69 |
All Other Corporate Bonds | Fixed Maturities | CSU Producers Resources Inc. | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1 |
Fair value | 1 |
Balance sheet | 1 |
Common Stock | Equity Securities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 3,640 |
Fair value | 8,541 |
Balance sheet | 8,541 |
Common Stock | Equity Securities | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1,606 |
Fair value | 3,686 |
Balance sheet | 3,686 |
Common Stock | Equity Securities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1,846 |
Fair value | 4,423 |
Balance sheet | 4,423 |
Common Stock | Equity Securities | The Cincinnati Casualty Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 56 |
Fair value | 146 |
Balance sheet | 146 |
Common Stock | Equity Securities | The Cincinnati Indemnity Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 17 |
Fair value | 36 |
Balance sheet | 36 |
Common Stock | Equity Securities | The Cincinnati Specialty Underwriters Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 96 |
Fair value | 217 |
Balance sheet | 217 |
Common Stock | Equity Securities | CSU Producers Resources Inc. | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 19 |
Fair value | 33 |
Balance sheet | 33 |
Nonredeemable Preferred Stock | Equity Securities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 287 |
Fair value | 315 |
Balance sheet | 315 |
Nonredeemable Preferred Stock | Equity Securities | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1 |
Fair value | 1 |
Balance sheet | 1 |
Nonredeemable Preferred Stock | Equity Securities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 274 |
Fair value | 299 |
Balance sheet | 299 |
Nonredeemable Preferred Stock | Equity Securities | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 12 |
Fair value | 15 |
Balance sheet | 15 |
Policy Loans | Other than Securities Investment | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 33 |
Fair value | 0 |
Balance sheet | 33 |
Lloyd's and other deposits | Other than Securities Investment | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 109 |
Fair value | 0 |
Balance sheet | 109 |
Lloyd's and other deposits | Other than Securities Investment | Cincinnati Global | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 53 |
Fair value | 0 |
Balance sheet | 53 |
Limited Partnership | Other than Securities Investment | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 31 |
Fair value | 0 |
Balance sheet | 31 |
Limited Partnership | Other than Securities Investment | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 94 |
Balance sheet | 94 |
Limited Partnership | Other than Securities Investment | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 3 |
Balance sheet | 3 |
Real Estate | Other than Securities Investment | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 5 |
Balance sheet | 5 |
Real Estate | Other than Securities Investment | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 11 |
Balance sheet | 11 |
Real Estate | Other than Securities Investment | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 9 |
Balance sheet | $ 9 |
Condensed Financial Statement_2
Condensed Financial Statements Of Parent Company Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Investments | ||||
Fixed maturities, at fair value (amortized cost: 2020—$69; 2019—$49) | $ 12,338 | $ 11,698 | ||
Equity securities, at fair value (cost: 2020—$1,607; 2019—$1,427) | 8,856 | 7,752 | ||
Other invested assets | 348 | 296 | ||
Total investments | 21,542 | 19,746 | ||
Cash and cash equivalents | 900 | 767 | $ 784 | $ 657 |
Investment income receivable | 136 | 133 | ||
Land, building and equipment, net, for company use (accumulated depreciation: 2020—$138; 2019—$129) | 213 | 207 | ||
Other assets | 438 | 381 | ||
Total assets | 27,542 | 25,408 | ||
Liabilities | ||||
Deferred federal income tax | 1,555 | 1,311 | ||
Long-term debt | 788 | 788 | ||
Other liabilities | 982 | 928 | ||
Total liabilities | 16,753 | 15,544 | ||
Shareholders' Equity | ||||
Common stock | 397 | 397 | ||
Paid-in capital | 1,328 | 1,306 | ||
Retained earnings | 10,085 | 9,257 | ||
Accumulated other comprehensive income | 769 | 448 | ||
Treasury stock at cost | (1,790) | (1,544) | ||
Total shareholders' equity | 10,789 | 9,864 | 7,833 | |
Total liabilities and shareholders' equity | 27,542 | 25,408 | ||
Cincinnati Financial Corporation | ||||
Investments | ||||
Fixed maturities, at fair value (amortized cost: 2020—$69; 2019—$49) | 68 | 49 | ||
Equity securities, at fair value (cost: 2020—$1,607; 2019—$1,427) | 3,687 | 3,069 | ||
Other invested assets | 145 | 103 | ||
Total investments | 3,900 | 3,221 | ||
Cash and cash equivalents | 16 | 197 | $ 209 | $ 199 |
Equity in net assets of subsidiaries | 7,982 | 7,424 | ||
Investment income receivable | 8 | 7 | ||
Land, building and equipment, net, for company use (accumulated depreciation: 2020—$138; 2019—$129) | 143 | 141 | ||
Income tax receivable | 5 | 2 | ||
Other assets | 53 | 61 | ||
Due from subsidiaries | 110 | 107 | ||
Total assets | 12,217 | 11,160 | ||
Liabilities | ||||
Dividends declared but unpaid | 97 | 91 | ||
Deferred federal income tax | 429 | 345 | ||
Long-term debt | 788 | 788 | ||
Other liabilities | 114 | 72 | ||
Total liabilities | 1,428 | 1,296 | ||
Shareholders' Equity | ||||
Common stock | 397 | 397 | ||
Paid-in capital | 1,328 | 1,306 | ||
Retained earnings | 10,085 | 9,257 | ||
Accumulated other comprehensive income | 769 | 448 | ||
Treasury stock at cost | (1,790) | (1,544) | ||
Total shareholders' equity | 10,789 | 9,864 | ||
Total liabilities and shareholders' equity | $ 12,217 | $ 11,160 |
Condensed Financial Statement_3
Condensed Financial Statements Of Parent Company Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Financial Statements, Captions | ||
Fixed maturities, amortized cost | $ 11,312 | $ 11,108 |
Equity securities, cost | 3,927 | 3,581 |
Land, building and equipment, accumulated depreciation | 285 | 276 |
Cincinnati Financial Corporation | ||
Condensed Financial Statements, Captions | ||
Fixed maturities, amortized cost | 69 | 49 |
Equity securities, cost | 1,607 | 1,427 |
Land, building and equipment, accumulated depreciation | $ 138 | $ 129 |
Condensed Financial Statement_4
Condensed Financial Statements Of Parent Company Condensed Statements Of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||||||||||
Investment income, net of expenses | $ 670 | $ 646 | $ 619 | ||||||||
Investment gains and losses, net | 865 | 1,650 | (402) | ||||||||
Other revenues | 10 | 9 | 5 | ||||||||
Total revenues | $ 2,694 | $ 2,227 | $ 2,714 | $ (99) | $ 2,152 | $ 1,700 | $ 1,913 | $ 2,159 | 7,536 | 7,924 | 5,407 |
Expenses | |||||||||||
Interest expense | 54 | 53 | 53 | ||||||||
Other expenses | 20 | 23 | 16 | ||||||||
Total expenses | 6,037 | 5,452 | 5,156 | ||||||||
Income (Loss) Before Income Taxes and Earnings of Subsidiaries | 1,316 | 614 | 1,145 | (1,576) | 781 | 294 | 530 | 867 | 1,499 | 2,472 | 251 |
Provision (Benefit) for Income Taxes | 283 | 475 | (36) | ||||||||
Net Income | $ 1,049 | $ 484 | $ 909 | $ (1,226) | $ 626 | $ 248 | $ 428 | $ 695 | 1,216 | 1,997 | 287 |
Amortization of pension actuarial gains and losses and prior service costs | (25) | 5 | (3) | ||||||||
Other comprehensive income (loss) | 321 | 426 | (263) | ||||||||
Comprehensive Income | 1,537 | 2,423 | 24 | ||||||||
Cincinnati Financial Corporation | |||||||||||
Revenues | |||||||||||
Investment income, net of expenses | 81 | 75 | 65 | ||||||||
Investment gains and losses, net | 556 | 728 | (108) | ||||||||
Other revenues | 15 | 15 | 15 | ||||||||
Total revenues | 652 | 818 | (28) | ||||||||
Expenses | |||||||||||
Interest expense | 54 | 52 | 52 | ||||||||
Other expenses | 34 | 37 | 31 | ||||||||
Total expenses | 88 | 89 | 83 | ||||||||
Income (Loss) Before Income Taxes and Earnings of Subsidiaries | 564 | 729 | (111) | ||||||||
Provision (Benefit) for Income Taxes | 111 | 146 | (31) | ||||||||
Net Income (Loss) Before Earnings of Subsidiaries | 453 | 583 | (80) | ||||||||
Increase in equity of subsidiaries | 763 | 1,414 | 367 | ||||||||
Net Income | 1,216 | 1,997 | 287 | ||||||||
Change in unrealized gain (loss) on securities | 0 | 0 | (2) | ||||||||
Amortization of pension actuarial gains and losses and prior service costs | (25) | 5 | (3) | ||||||||
Other Comprehensive Income (Loss) Before Other Comprehensive Income (Loss) from Subsidiaries | (25) | 5 | (5) | ||||||||
Other Comprehensive Income (Loss) of subsidiaries | 346 | 421 | (258) | ||||||||
Other comprehensive income (loss) | 321 | 426 | (263) | ||||||||
Comprehensive Income | $ 1,537 | $ 2,423 | $ 24 |
Condensed Financial Statement_5
Condensed Financial Statements Of Parent Company Condensed Statements Of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities | |||||||||||
Net Income | $ 1,049 | $ 484 | $ 909 | $ (1,226) | $ 626 | $ 248 | $ 428 | $ 695 | $ 1,216 | $ 1,997 | $ 287 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 81 | 72 | 63 | ||||||||
Gain (Loss) on Sale of Investments | (851) | (1,640) | 408 | ||||||||
Changes in: | |||||||||||
Investment income receivable | (3) | (1) | 2 | ||||||||
Current income tax receivable/payable | 44 | 92 | (91) | ||||||||
Other assets | (26) | (22) | (1) | ||||||||
Net cash provided by operating activities | 1,491 | 1,208 | 1,181 | ||||||||
Cash Flows From Investing Activities | |||||||||||
Sale of fixed maturities | 179 | 102 | 36 | ||||||||
Call or maturity of fixed maturities | 912 | 1,241 | 1,127 | ||||||||
Sale of equity securities | 515 | 203 | 403 | ||||||||
Purchase of fixed maturities | (1,382) | (1,742) | (1,510) | ||||||||
Purchase of equity securities | (699) | (382) | (441) | ||||||||
Investment in buildings and equipment | (20) | (24) | (20) | ||||||||
Change in other invested assets, net | (50) | (72) | (38) | ||||||||
Net cash used in investing activities | (560) | (679) | (451) | ||||||||
Cash Flows From Financing Activities | |||||||||||
Payment of cash dividends to shareholders | (375) | (355) | (336) | ||||||||
Shares acquired - share repurchase authorization | (261) | (67) | (125) | ||||||||
Proceeds from stock options exercised | 11 | 9 | |||||||||
Other | (110) | (54) | (60) | ||||||||
Net cash used in financing activities | (798) | (546) | (603) | ||||||||
Cash and cash equivalents at beginning of year | 767 | 784 | 767 | 784 | 657 | ||||||
Cash and cash equivalents at end of year | 900 | 767 | 900 | 767 | 784 | ||||||
Cincinnati Financial Corporation | |||||||||||
Cash Flows From Operating Activities | |||||||||||
Net Income | 1,216 | 1,997 | 287 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 12 | 10 | 7 | ||||||||
Gain (Loss) on Sale of Investments | (552) | (720) | 114 | ||||||||
Dividends from subsidiaries | 550 | 625 | 500 | ||||||||
Changes in: | |||||||||||
Increase in equity of subsidiaries | (763) | (1,414) | (367) | ||||||||
Investment income receivable | (1) | (1) | 2 | ||||||||
Current federal income taxes | (3) | (1) | 14 | ||||||||
Current income tax receivable/payable | 91 | 146 | (35) | ||||||||
Other assets | 0 | 4 | (17) | ||||||||
Other liabilities | 1 | 4 | 3 | ||||||||
Intercompany receivable for operations | 34 | 20 | 19 | ||||||||
Net cash provided by operating activities | 585 | 670 | 527 | ||||||||
Cash Flows From Investing Activities | |||||||||||
Sale of fixed maturities | 0 | 3 | 1 | ||||||||
Call or maturity of fixed maturities | 1 | 21 | 19 | ||||||||
Sale of equity securities | 307 | 122 | 131 | ||||||||
Purchase of fixed maturities | (23) | (39) | (17) | ||||||||
Purchase of equity securities | (372) | (237) | (177) | ||||||||
Investment in buildings and equipment | (11) | (13) | (12) | ||||||||
Cash paid for acquisition | 0 | ||||||||||
Change in other invested assets, net | (42) | (67) | (11) | ||||||||
Net cash used in investing activities | (140) | (273) | (66) | ||||||||
Cash Flows From Financing Activities | |||||||||||
Payment of cash dividends to shareholders | (375) | (355) | (336) | ||||||||
Shares acquired - share repurchase authorization | (261) | (67) | (125) | ||||||||
Proceeds from stock options exercised | 7 | 11 | 9 | ||||||||
Other | 3 | 2 | 1 | ||||||||
Net cash used in financing activities | (626) | (409) | (451) | ||||||||
Net change in cash and cash equivalents | (181) | (12) | 10 | ||||||||
Cash and cash equivalents at beginning of year | $ 197 | $ 209 | 197 | 209 | 199 | ||||||
Cash and cash equivalents at end of year | $ 16 | $ 197 | $ 16 | $ 197 | $ 209 |
Supplementary Insurance Infor_2
Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | $ 805 | $ 774 | $ 738 |
Gross future policy benefits, losses, claims and expense losses | 9,615 | 8,947 | 8,448 |
Gross unearned premium | 2,960 | 2,788 | 2,516 |
Other policy claims and benefits payable | 46 | 35 | 38 |
Earned premiums | 5,980 | 5,604 | 5,170 |
Investment income, net of expenses | 589 | 571 | 554 |
Benefits, claims losses and settlement expense | 4,134 | 3,638 | 3,490 |
Amortization of deferred policy acquisition costs | 1,106 | 1,034 | 946 |
Underwriting, acquisition and insurance expenses | 723 | 704 | 651 |
Net written premiums | 5,866 | 5,518 | 5,033 |
Commercial Insurance | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 317 | 311 | 291 |
Gross future policy benefits, losses, claims and expense losses | 4,881 | 4,569 | 4,466 |
Gross unearned premium | 1,714 | 1,665 | 1,576 |
Earned premiums | 3,476 | 3,319 | 3,218 |
Benefits, claims losses and settlement expense | 2,336 | 2,030 | 2,049 |
Amortization of deferred policy acquisition costs | 664 | 631 | 608 |
Underwriting, acquisition and insurance expenses | 415 | 422 | 415 |
Net written premiums | 3,534 | 3,410 | 3,245 |
Personal Insurance | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 136 | 130 | 126 |
Gross future policy benefits, losses, claims and expense losses | 739 | 687 | 679 |
Gross unearned premium | 797 | 757 | 725 |
Earned premiums | 1,463 | 1,404 | 1,336 |
Benefits, claims losses and settlement expense | 977 | 985 | 972 |
Amortization of deferred policy acquisition costs | 256 | 251 | 242 |
Underwriting, acquisition and insurance expenses | 187 | 164 | 147 |
Net written premiums | 1,503 | 1,435 | 1,378 |
Excess and Surplus Lines Insurance | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 28 | 25 | 21 |
Gross future policy benefits, losses, claims and expense losses | 446 | 351 | 298 |
Gross unearned premium | 175 | 152 | 123 |
Earned premiums | 325 | 278 | 234 |
Benefits, claims losses and settlement expense | 199 | 142 | 104 |
Amortization of deferred policy acquisition costs | 51 | 47 | 39 |
Underwriting, acquisition and insurance expenses | 43 | 38 | 29 |
Net written premiums | 348 | 303 | 249 |
Reinsurance assumed and other non segment | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 61 | 46 | 26 |
Gross future policy benefits, losses, claims and expense losses | 611 | 481 | 203 |
Gross unearned premium | 273 | 213 | 91 |
Earned premiums | 427 | 333 | 132 |
Benefits, claims losses and settlement expense | 325 | 195 | 98 |
Amortization of deferred policy acquisition costs | 86 | 57 | 18 |
Underwriting, acquisition and insurance expenses | 42 | 42 | 24 |
Net written premiums | 479 | 368 | 158 |
Property, Liability and Casualty Insurance | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 542 | 512 | 464 |
Gross future policy benefits, losses, claims and expense losses | 6,677 | 6,088 | 5,646 |
Gross unearned premium | 2,959 | 2,787 | 2,515 |
Earned premiums | 5,691 | 5,334 | 4,920 |
Investment income, net of expenses | 431 | 419 | 401 |
Benefits, claims losses and settlement expense | 3,837 | 3,352 | 3,223 |
Amortization of deferred policy acquisition costs | 1,057 | 986 | 907 |
Underwriting, acquisition and insurance expenses | 687 | 666 | 615 |
Net written premiums | 5,864 | 5,516 | 5,030 |
Accident and Health Insurance | |||
Supplementary Insurance Information, by Segment | |||
Net written premiums | 2 | 2 | 3 |
Life Insurance Segment | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 263 | 262 | 274 |
Gross future policy benefits, losses, claims and expense losses | 2,938 | 2,859 | 2,802 |
Gross unearned premium | 1 | 1 | 1 |
Other policy claims and benefits payable | 46 | 35 | 38 |
Earned premiums | 289 | 270 | 250 |
Investment income, net of expenses | 158 | 152 | 153 |
Benefits, claims losses and settlement expense | 297 | 286 | 267 |
Amortization of deferred policy acquisition costs | 49 | 48 | 39 |
Underwriting, acquisition and insurance expenses | $ 36 | $ 38 | $ 36 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Gross amounts, life insurance in force | $ 111,756 | $ 108,130 | $ 104,726 |
Gross amounts | 5,985 | 5,681 | 5,251 |
Ceded amounts to other companies, life insurance in force | 38,281 | 38,146 | 38,584 |
Ceded premiums earned | 290 | 276 | 230 |
Assumed amounts from other companies, life insurance in force | 0 | 0 | 0 |
Assumed amounts from other companies | 285 | 199 | 149 |
Net amounts, life insurance in force | 73,475 | 69,984 | 66,142 |
Premiums Earned, Net | $ 5,980 | $ 5,604 | $ 5,170 |
Percentage of amounts assumed to net, life insurance in force | 0.00% | 0.00% | 0.00% |
Percentage of amounts assumed to net | 4.80% | 3.60% | 2.90% |
Commercial Insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Gross amounts | $ 3,578 | $ 3,421 | $ 3,314 |
Ceded premiums earned | 109 | 109 | 104 |
Assumed amounts from other companies | 7 | 7 | 8 |
Premiums Earned, Net | $ 3,476 | $ 3,319 | $ 3,218 |
Percentage of amounts assumed to net | 0.20% | 0.20% | 0.30% |
Personal Insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Gross amounts | $ 1,503 | $ 1,446 | $ 1,372 |
Ceded premiums earned | 41 | 43 | 37 |
Assumed amounts from other companies | 1 | 1 | 1 |
Premiums Earned, Net | $ 1,463 | $ 1,404 | $ 1,336 |
Percentage of amounts assumed to net | 0.10% | 0.10% | 0.10% |
Excess and Surplus Lines Insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Gross amounts | $ 341 | $ 292 | $ 245 |
Ceded premiums earned | 16 | 14 | 11 |
Assumed amounts from other companies | 0 | 0 | 0 |
Premiums Earned, Net | $ 325 | $ 278 | $ 234 |
Percentage of amounts assumed to net | 0.00% | 0.00% | 0.00% |
Reinsurance assumed and other non segment | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Gross amounts | $ 201 | $ 181 | $ 0 |
Ceded premiums earned | 51 | 39 | 8 |
Assumed amounts from other companies | 277 | 191 | 140 |
Premiums Earned, Net | $ 427 | $ 333 | $ 132 |
Percentage of amounts assumed to net | 64.90% | 57.40% | 106.10% |
Property, Liability and Casualty Insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Gross amounts | $ 5,623 | $ 5,340 | $ 4,931 |
Ceded premiums earned | 217 | 205 | 160 |
Assumed amounts from other companies | 285 | 199 | 149 |
Premiums Earned, Net | $ 5,691 | $ 5,334 | $ 4,920 |
Percentage of amounts assumed to net | 5.00% | 3.70% | 3.00% |
Life Insurance Segment | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Gross amounts | $ 362 | $ 341 | $ 320 |
Ceded premiums earned | 73 | 71 | 70 |
Assumed amounts from other companies | 0 | 0 | 0 |
Premiums Earned, Net | $ 289 | $ 270 | $ 250 |
Percentage of amounts assumed to net | 0.00% | 0.00% | 0.00% |
Valuation And Qualifying Acco_2
Valuation And Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation and allowance roll forward | ||||
Beginning balance, January 1 | $ 49 | $ 6 | ||
Ending balance, December 31 | 78 | 49 | $ 6 | |
Increase to allowance through retained earnings for ASU 2016-13, pretax | 3 | 0 | $ 0 | |
Allowance for doubtful receivables | ||||
Valuation and allowance roll forward | ||||
Beginning balance, January 1 | 8 | 6 | 6 | |
Additions charged to costs and expenses | 19 | 8 | 6 | |
Deductions | (8) | (6) | (6) | |
Ending balance, December 31 | 22 | 8 | 6 | |
Deferred tax valuation allowance | ||||
Valuation and allowance roll forward | ||||
Beginning balance, January 1 | 41 | 0 | 0 | |
Additions charged to costs and expenses | 15 | 55 | 0 | |
Deductions | 0 | (14) | 0 | |
Ending balance, December 31 | $ 56 | $ 41 | $ 0 |
Supplementary Information Con_2
Supplementary Information Concerning Property Casualty Insurance Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Casualty Insurance Underwriters | |||
Deferred policy acquisition costs | $ 542 | $ 512 | $ 464 |
Reserves for unpaid claims and claim adjustment expenses | 6,677 | 6,088 | 5,646 |
Unearned premiums | 2,959 | 2,787 | 2,515 |
Earned premiums | 5,691 | 5,334 | 4,920 |
Investment income | 431 | 419 | 401 |
Loss and loss expenses incurred related to current accident year | 3,968 | 3,600 | 3,390 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (131) | (248) | (167) |
Amortization of deferred policy acquisition cost | 1,057 | 986 | 907 |
Paid loss and loss expenses | 3,183 | 3,260 | 2,847 |
Net written premiums | 5,864 | 5,516 | 5,030 |
Commercial Insurance | |||
Property Casualty Insurance Underwriters | |||
Deferred policy acquisition costs | 317 | 311 | 291 |
Reserves for unpaid claims and claim adjustment expenses | 4,881 | 4,569 | 4,466 |
Unearned premiums | 1,714 | 1,665 | 1,576 |
Earned premiums | 3,476 | 3,319 | 3,218 |
Investment income | 0 | 0 | 0 |
Loss and loss expenses incurred related to current accident year | 2,431 | 2,222 | 2,206 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (95) | (192) | (157) |
Amortization of deferred policy acquisition cost | 664 | 631 | 608 |
Paid loss and loss expenses | 1,969 | 2,023 | 1,816 |
Net written premiums | 3,534 | 3,410 | 3,245 |
Personal Insurance | |||
Property Casualty Insurance Underwriters | |||
Deferred policy acquisition costs | 136 | 130 | 126 |
Reserves for unpaid claims and claim adjustment expenses | 739 | 687 | 679 |
Unearned premiums | 797 | 757 | 725 |
Earned premiums | 1,463 | 1,404 | 1,336 |
Investment income | 0 | 0 | 0 |
Loss and loss expenses incurred related to current accident year | 995 | 1,012 | 960 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (18) | (27) | 13 |
Amortization of deferred policy acquisition cost | 256 | 251 | 242 |
Paid loss and loss expenses | 921 | 966 | 913 |
Net written premiums | 1,503 | 1,435 | 1,378 |
Excess and Surplus Lines Insurance | |||
Property Casualty Insurance Underwriters | |||
Deferred policy acquisition costs | 28 | 25 | 21 |
Reserves for unpaid claims and claim adjustment expenses | 446 | 351 | 298 |
Unearned premiums | 175 | 152 | 123 |
Earned premiums | 325 | 278 | 234 |
Investment income | 0 | 0 | 0 |
Loss and loss expenses incurred related to current accident year | 192 | 153 | 128 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | 7 | (11) | (24) |
Amortization of deferred policy acquisition cost | 51 | 47 | 39 |
Paid loss and loss expenses | 112 | 90 | 74 |
Net written premiums | 348 | 303 | 249 |
Reinsurance assumed and other non segment | |||
Property Casualty Insurance Underwriters | |||
Deferred policy acquisition costs | 61 | 46 | 26 |
Reserves for unpaid claims and claim adjustment expenses | 611 | 481 | 203 |
Unearned premiums | 273 | 213 | 91 |
Earned premiums | 427 | 333 | 132 |
Investment income | 0 | 0 | 0 |
Loss and loss expenses incurred related to current accident year | 350 | 213 | 96 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (25) | (18) | 1 |
Amortization of deferred policy acquisition cost | 86 | 57 | 18 |
Paid loss and loss expenses | 181 | 181 | 44 |
Net written premiums | $ 479 | $ 368 | $ 158 |