In millions
At fair value
In billions
Per common share, diluted
2011 consolidated revenues rose 1 percent, compared with a year ago. Each revenue source shown grew except for net realized investment gains and other. Invested assets continued a growth pattern following the U.S. financial crisis of 2008. Net income declined in 2011, compared with 2010, primarily due to $1.01 per share increase in losses from natural catastrophe events. The contribution of property casualty results, before the effect of catastrophe losses, improved by $0.10 per share in 2011.
Per common share
Per common share
Book value per share grew in 2011, despite absorbing the effect of the two largest catastrophe losses in the company's history. We increased our shareholder dividend in 2011, marking the 51st consecutive year of increases. To calculate the value creation ratio, we add the percentage of year-over-year growth in book value per share to the annual contribution of dividends (the percentage of declared dividends per share to beginning book value per share). The effect of the higher losses from 2011 natural catastrophe events, relative to 2010, lowered the ratio by 3.3 percentage points.
Cincinnati Financial Corporation and Subsidiaries
|
||||||||
(Dollars in millions)
|
At December 31, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Investments |
$ | 11,801 | $ | 11,508 | ||||
Cash and cash equivalents |
438 | 385 | ||||||
Premiums receivable |
1,087 | 1,015 | ||||||
Reinsurance receivable |
622 | 572 | ||||||
Other assets |
1,720 | 1,615 | ||||||
Total assets |
$ | 15,668 | $ | 15,095 | ||||
Liabilities |
||||||||
Insurance reserves |
$ | 6,553 | $ | 6,234 | ||||
Unearned premiums |
1,633 | 1,553 | ||||||
Deferred income tax |
314 | 260 | ||||||
Long-term debt and capital lease obligation |
821 | 807 | ||||||
Other liabilities |
1,292 | 1,209 | ||||||
Total liabilities |
10,613 | 10,063 | ||||||
Shareholders Equity |
||||||||
Common stock and paid-in capital |
1,489 | 1,484 | ||||||
Retained earnings |
3,885 | 3,980 | ||||||
Accumulated other comprehensive income |
901 | 769 | ||||||
Treasury stock |
(1,220) | (1,201) | ||||||
Total shareholders equity |
5,055 | 5,032 | ||||||
Total liabilities and shareholders equity |
$ | 15,668 | $ | 15,095 | ||||
|
||||||||||||
(Dollars in millions except per share data) | Years ended December 31, | |||||||||||
2011 | 2010 | 2009 | ||||||||||
Revenues |
||||||||||||
Earned premiums |
$ | 3,194 | $ | 3,082 | $ | 3,054 | ||||||
Investment income, net of expenses |
525 | 518 | 501 | |||||||||
Realized investment gains and losses |
70 | 159 | 336 | |||||||||
Fee revenues |
4 | 4 | 3 | |||||||||
Other revenues |
10 | 9 | 9 | |||||||||
Total revenues |
3,803 | 3,772 | 3,903 | |||||||||
Benefits and Expenses |
||||||||||||
Insurance losses and policyholder benefits |
2,524 | 2,180 | 2,242 | |||||||||
Underwriting, acquisition and insurance expenses |
1,036 | 1,021 | 1,004 | |||||||||
Other operating expenses |
13 | 16 | 20 | |||||||||
Interest expense |
54 | 54 | 55 | |||||||||
Total benefits and expenses |
3,627 | 3,271 | 3,321 | |||||||||
Income Before Income Taxes |
176 | 501 | 582 | |||||||||
Provision for Income Taxes |
10 | 124 | 150 | |||||||||
Net Income |
$ | 166 | $ | 377 | $ | 432 | ||||||
Per Common Share |
||||||||||||
Net income basic |
$ | 1.02 | $ | 2.32 | $ | 2.66 | ||||||
Net income diluted |
$ | 1.02 | $ | 2.31 | $ | 2.65 | ||||||
Cincinnati Financial Corporation and Subsidiaries |
||||||||||||||||||||||||
(Dollars in millions except per share data) |
Years ended December 31, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||
Financial Highlights |
||||||||||||||||||||||||
Net income |
$ | 166 | $ | 377 | $ | 432 | $ | 429 | $ | 855 | ||||||||||||||
Net realized investment gains and losses, after tax |
45 | 103 | 217 | 85 | 245 | |||||||||||||||||||
Operating income |
$ | 121 | $ | 274 | $ | 215 | $ | 344 | $ | 610 | ||||||||||||||
Per Share Data (diluted) |
||||||||||||||||||||||||
Net income |
$ | 1.02 | $ | 2.31 | $ | 2.65 | $ | 2.62 | $ | 4.97 | ||||||||||||||
Net realized investment gains and losses, after tax |
0.28 | 0.63 | 1.33 | 0.52 | 1.43 | |||||||||||||||||||
Operating income |
$ | 0.74 | $ | 1.68 | $ | 1.32 | $ | 2.10 | $ | 3.54 | ||||||||||||||
Cash dividends declared |
1.605 | 1.59 | 1.57 | 1.56 | 1.42 | |||||||||||||||||||
Book value |
31.16 | 30.91 | 29.25 | 25.75 | 35.70 | |||||||||||||||||||
Ratio Data |
||||||||||||||||||||||||
Debt-to-total-capital |
15.0% | 14.3% | 15.0% | 16.7% | 12.7% | |||||||||||||||||||
Book value growth |
0.8% | 5.7% | 13.6% | (27.9)% | (9.3)% | |||||||||||||||||||
Cash dividends declared to beginning book value |
5.2 | 5.4 | 6.1 | 4.4 | 3.6 | |||||||||||||||||||
Value creation ratio |
6.0% | 11.1% | 19.7% | (23.5)% | (5.7)% | |||||||||||||||||||
Consolidated Property Casualty Insurance Operations (Statutory) |
||||||||||||||||||||||||
Agency renewal written premiums |
$ | 2,867 | $ | 2,692 | $ | 2,665 | $ | 2,828 | $ | 2,960 | ||||||||||||||
Agency new business written premiums |
437 | 414 | 405 | 368 | 325 | |||||||||||||||||||
Net Written premiums |
3,098 | 2,963 | 2,911 | 3,010 | 3,117 | |||||||||||||||||||
Earned premiums |
3,029 | 2,924 | 2,911 | 3,010 | 3,125 | |||||||||||||||||||
Current accident year before catastrophe losses |
$ | 2,213 | $ | 2,154 | $ | 2,102 | $ | 2,174 | $ | 2,030 | ||||||||||||||
Current accident year catastrophe losses |
407 | 165 | 172 | 205 | 47 | |||||||||||||||||||
Prior accident years before catastrophe losses |
(280) | (287) | (181) | (321) | (224) | |||||||||||||||||||
Prior accident year catastrophe losses |
(5) | (17) | (7) | (2) | (21) | |||||||||||||||||||
Total loss and loss expenses |
$ | 2,335 | $ | 2,015 | $ | 2,086 | $ | 2,056 | $ | 1,832 | ||||||||||||||
Underwriting expenses |
987 | 974 | 953 | 965 | 988 | |||||||||||||||||||
Net underwriting gain (loss) |
(293) | (65) | (128) | (11) | 305 | |||||||||||||||||||
Loss ratio |
64.4% | 56.5% | 58.6% | 57.7% | 46.6% | |||||||||||||||||||
Loss expense ratio |
12.6 | 12.4 | 13.1 | 10.6 | 12.0 | |||||||||||||||||||
Underwriting expense ratio |
31.9 | 32.9 | 32.7 | 32.1 | 31.7 | |||||||||||||||||||
Combined ratio |
108.9% | 101.8% | 104.4% | 100.4% | 90.3% | |||||||||||||||||||
Policyholders' surplus |
$ | 3,747 | $ | 3,777 | $ | 3,648 | $ | 3,360 | $ | 4,307 | ||||||||||||||
Net written premiums to surplus |
0.83 | 0.78 | 0.80 | 0.90 | 0.72 | |||||||||||||||||||
Commercial Lines Property Casualty Insurance Operations (Statutory) |
||||||||||||||||||||||||
Net written premiums |
$ | 2,218 | $ | 2,155 | $ | 2,181 | $ | 2,311 | $ | 2,413 | ||||||||||||||
Earned premiums |
2,197 | 2,154 | 2,199 | 2,316 | 2,411 | |||||||||||||||||||
Loss ratio |
58.5% | 53.5% | 55.1% | 54.2% | 44.8% | |||||||||||||||||||
Loss expense ratio |
12.9 | 13.2 | 13.8 | 10.7 | 13.1 | |||||||||||||||||||
Underwriting expense ratio |
32.8 | 32.9 | 32.9 | 31.7 | 31.3 | |||||||||||||||||||
Combined ratio |
104.2% | 99.6% | 101.8% | 96.6% | 89.2% | |||||||||||||||||||
Personal Lines Property Casualty Insurance Operations (Statutory) |
||||||||||||||||||||||||
Net written premiums |
$ | 801 | $ | 750 | $ | 691 | $ | 685 | $ | 704 | ||||||||||||||
Earned premiums |
762 | 721 | 686 | 689 | 714 | |||||||||||||||||||
Loss ratio |
82.5% | 65.4% | 70.2% | 69.0% | 53.2% | |||||||||||||||||||
Loss expense ratio |
12.4 | 9.0 | 10.2 | 10.4 | 8.1 | |||||||||||||||||||
Underwriting expense ratio |
29.3 | 32.7 | 31.0 | 32.2 | 32.8 | |||||||||||||||||||
Combined ratio |
124.2% | 107.1% | 111.4% | 111.6% | 94.1% | |||||||||||||||||||
Excess & Surplus Lines Property Casualty Insurance Operations (Statutory) |
||||||||||||||||||||||||
Net written premiums |
$ | 79 | $ | 58 | $ | 39 | $ | 14 | $ | - | ||||||||||||||
Earned premiums |
70 | 49 | 27 | 5 | - | |||||||||||||||||||
Loss ratio |
48.9% | 58.1% | 50.4% | 82.2% | -% | |||||||||||||||||||
Loss expense ratio |
11.4 | 25.6 | 24.3 | 27.3 | - | |||||||||||||||||||
Underwriting expense ratio |
30.5 | 35.2 | 54.4 | 81.1 | - | |||||||||||||||||||
Combined ratio |
90.8% | 118.9% | 129.1% | 190.6% | -% | |||||||||||||||||||
Life Insurance Operations (Statutory) |
||||||||||||||||||||||||
Written premiums |
$ | 306 | $ | 376 | $ | 346 | $ | 185 | $ | 167 | ||||||||||||||
Net income (loss) before realized investment gains and losses |
- | 13 | 11 | (18) | 7 | |||||||||||||||||||
Net income (loss) |
(13) | 15 | 15 | (70) | 39 | |||||||||||||||||||
Gross life insurance face amount in force |
77,691 | 74,124 | 69,814 | 65,887 | 61,873 | |||||||||||||||||||
Admitted assets excluding separate account business |
2,735 | 2,569 | 2,260 | 1,930 | 2,029 | |||||||||||||||||||
Risk-based capital |
||||||||||||||||||||||||
Total adjusted capital |
288 | 318 | 316 | 290 | 506 | |||||||||||||||||||
Authorized control level risk-based capital |
36 | 35 | 40 | 37 | 66 | |||||||||||||||||||
* The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures are in our quarterly earnings news releases, which are available on the Investors page of our website www.cinfin.com |