<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
Annual Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the fiscal year ended December 31, 1993 Commission file number
0-4604
CINCINNATI FINANCIAL CORPORATION
-------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Ohio 31-0746871
-------------------------------- --------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6200 S. Gilmore Road, Fairfield, Ohio 45014-5141
- ----------------------------------------- ---------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (513)870-2000
Securities registered pursuant to Section 12(b) of the Act:
NONE
Securities registered pursuant to Section 12(g) of the Act:
Exchange on Which
Title of Each Class Registered
------------------- -----------------
$2.00 Par, Common Over The Counter
5-1/2% Convertible Senior Debentures Due 2002 Over The Counter
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
The aggregate market value of voting stock held by nonaffiliates of
Cincinnati Financial Corporation was $2,189,596,088 as of March 1, 1994.
As of March 1, 1994, there were 50,328,235 shares of common stock
outstanding.
Documents Incorporated by Reference
-----------------------------------
Annual Report to Shareholders for year ended December 31, 1993 (in part)
into Parts I, II and IV and Registrant's Proxy Statement dated February 26,
1994 into Parts I, III and IV.
<PAGE> 2
PART I
ITEM 1. BUSINESS
--------
Cincinnati Financial Corporation ("CFC") was incorporated on
September 20, 1968 under the laws of the State of Delaware. On April 4, 1992,
the shareholders voted to adopt an Agreement of Merger by means of which the
reincorporation of the Corporation from the State of Delaware to the State of
Ohio was accomplished. CFC owns 100% of The Cincinnati Insurance Company
("CIC") and 100% of CFC Investment Company ("CFC-I"). The principal purpose of
CFC is to be a holding company for CIC and CFC-I and in addition for the
purpose of acquiring other companies.
CIC, incorporated in August, 1950, is an insurance carrier presently
licensed to conduct multiple line underwriting in accordance with Section
3941.02 of the Revised Code of Ohio. This includes the sale of fire,
automobile, casualty, bonds, and all related forms of property and casualty
insurance in 50 states and the District of Columbia. CIC is not authorized to
write any other forms of insurance. CIC is in a highly competitive industry
and competes in varying degrees with a large number of stock and mutual
companies. CIC also owns 100% of the stock of the following insurance
companies.
1. The Cincinnati Life Insurance Company ("CLIC") incorporated in 1987 under
the laws of Ohio for the purpose of acquiring the business of Inter-Ocean
and The Life Insurance Company of Cincinnati. CLIC acquired The Life
Insurance Company of Cincinnati and Inter-Ocean Insurance Company on
February 1, 1988. CLIC is engaged in the sale of life insurance and
accident and health insurance in 45 states and the District of Columbia.
2. The Cincinnati Casualty Company ("CCC") (formerly the Queen City Indemnity
Company), incorporated in 1972 under the laws of Ohio, is engaged in the
fire and casualty insurance business on a direct billing basis in 26
states. The business of CIC and CCC is conducted separately, and there are
no plans for combining the business of said companies.
3. The Cincinnati Indemnity Company ("CID"), incorporated in 1988 under the
laws of Ohio, is engaged in the writing of nonpreferred personal and
casualty lines of insurance in 20 states. The business of CIC and CID is
conducted separately, and there are no plans for combining the business of
said companies.
CFC-I, organized in 1970, owns certain real estate in the Greater
Cincinnati area and is in the business of leasing or financing various items,
principally automobiles, trucks, computer equipment, machine tools,
construction equipment, and office equipment.
Industry segment information for revenue, operating profits, and
identifiable assets is included on page 30 of the Company's Annual Report to
Shareholders and is incorporated herein by reference (see Exhibit 13 to this
filing).
<PAGE> 3
As more fully discussed in pages 7 and 9 to 12 in the Company's Annual
Report to Shareholders, incorporated herein by reference (see Exhibit 13 to
this filing), the company sells insurance primarily in the Midwest and
Southeast through a network of a limited number (965 in 23 states at December
31, 1993) of selectively appointed independent agents, most of whom own stock
in the Company. Gross written premiums by property/ casualty lines for 1993
are shown in the table on page 9 of the Annual Report to Shareholders (see
Exhibit 13 to this filing). As indicated therein, the Company's mix of
property/casualty business did not change significantly in 1993. Life and
accident and health insurance (which constituted only 4% of the Company's
premium income for 1993) is also sold primarily through property/casualty
agencies and did not change significantly in 1993.
The consolidated financial statements include the estimated liability
for unpaid losses and loss adjustment expenses ("LAE") of the Company's
property/casualty ("P/C") insurance subsidiaries. The subsidiaries write
property and casualty insurance in 50 states and the District of Columbia. The
liabilities for losses and LAE are determined using case-basis evaluations and
statistical projections and represent estimates of the ultimate net cost of all
unpaid losses and LAE incurred through December 31 of each year. These
estimates are subject to the effect of trends in future claim severity and
frequency. These estimates are continually reviewed; and as experience
develops and new information becomes known, the liability is adjusted as
necessary. Such adjustments, if any, are reflected in current operations.
The Company does not discount any of its property/casualty liabilities
for unpaid losses and unpaid loss adjustment expenses.
The accompanying tables present an analysis of losses and LAE. The
following table provides a reconciliation of beginning and ending liability
balances for 1993, 1992, and 1991. The next table shows the development of the
estimated liability for the ten years prior to 1993.
<PAGE> 4
<TABLE>
RECONCILIATION OF NET LIABILITY FOR LOSSES AND LOSS ADJUSTMENT EXPENSES
(000 omitted)
<CAPTION>
1993 1992 1991
---- ---- ----
<S> <C> <C> <C>
Liability for losses and LAE at
beginning of year (net of
reinsurance recoverable) $1,137,833 $ 986,209 $ 832,581
---------- ---------- ----------
Provision for losses and LAE for
claims occurring in the
current year 828,978 752,993 603,635
Increase (decrease) in estimated
losses and LAE for claims
occurring in prior years (39,769) (30,351) 36,456
------- ------- ------
789,209 722,642 640,091
------- ------- -------
Losses and LAE payments for
claims occurring during:
The current year 323,616 291,508 254,205
Prior years 310,065 279,510 232,258
------- ------- -------
633,681 571,018 486,463
------- ------- -------
Liability for losses and LAE at
end of year (net of reinsur-
ance recoverable) $1,293,361 $1,137,833 $ 986,209
========== ========== ==========
Gross amount (per financial
statement Schedule V included
herein) $1,365,052 $1,200,182 $1,056,923
Less reinsurance recoverable 71,691 62,349 70,714
------ ------ ------
Net amount $1,293,361 $1,137,833 $ 986,209
========== ========== ==========
</TABLE>
The reconciliation shows a 1993 recognition of $39,769,000 redundancy in
the December 31, 1992 liability. This redundancy is due in part to the effects
of settling case reserves established in prior years for less than expected and
also in part to the over estimation of the severity of IBNR losses. Average
severity continues to increase primarily because of increases in medical costs
related to workers' compensation and auto liability insurance. Also, litigation
expenses for recent court cases on pending liability claims continue to be very
costly; and judgments continue to be high and difficult to estimate.
The anticipated effect of inflation is implicitly considered when
estimating liabilities for losses and LAE. While anticipated price increases
due to inflation are considered in estimating the ultimate claim costs, the
increase in average severities of claims is caused by a number of factors that
vary with the individual type of policy written. Future average severities are
projected based on historical trends adjusted for anticipated changes in
underwriting standards, policy provisions, and general economic trends. These
trends are monitored based on actual development and are modified if necessary.
The limits on risks retained by the Company vary by type of policy, and
risks in excess of the retention limits are reinsured. Because of the growth in
the Company's capacity to underwrite risks and
<PAGE> 5
reinsurance market conditions, in 1987, the Company raised its retention
limits from $500,000 to $750,000 for casualty lines of insurance. In 1989, the
casualty and property lines retention limits were further raised to $1,000,000.
There are no differences between the liability reported in the
accompanying consolidated financial statements in accordance with generally
accepted accounting principles ("GAAP") and that reported in the annual
statement filed with state insurance departments in accordance with statutory
accounting practices ("SAP").
<TABLE>
<CAPTION>
ANALYSIS OF LOSS AND LOSS ADJUSTMENT EXPENSE DEVELOPMENT
(Millions of Dollars)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended December 31 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
- ---------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Net Liability for Unpaid
Losses and Loss
Adjustment Expenses $184 $212 $272 $377 $534 $631 $742 $833 $986 $1,138 $1,293
Net Liability Reestimated
as of:
One Year Later 187 229 344 444 548 671 751 869 956 1,098
Two Years Later 197 266 382 460 584 634 747 816 928
Three Years Later 210 279 382 480 544 622 696 795
Four Years Later 217 284 383 452 535 596 676
Five Years Later 222 280 370 447 523 580
Six Years Later 218 273 370 443 508
Seven Years Later 215 272 367 429
Eight Years Later 214 274 364
Nine Years Later 217 275
Ten Years Later 218
Net Cumulative Redundancy
(Deficiency) $(34) $(63) $(92) $(52) $ 26 $ 51 $ 66 $ 38 $ 58 $ 40
==== ==== ==== ==== ==== ==== ==== ==== ==== ======
Net Cumulative Amount of
Liability Paid
Through:
One Year Later $81 $ 99 $137 $153 $178 $204 $238 $232 $280 $ 310
Two Years Later 124 159 217 247 292 321 356 397 440
Three Years Later 156 198 266 313 362 390 446 493
Four Years Later 175 220 300 351 398 441 497
Five Years Later 185 237 316 367 427 467
Six Years Later 193 245 324 387 441
Seven Years Later 196 247 338 394
Eight Years Later 198 253 340
Nine Years Later 202 255
Ten Years Later 203
Gross Liability--End of Year $1,200 $1,365
Reinsurance Recoverable 62 72
-- --
Net Liability--End of Year $1,138 $1,293
====== ======
Gross Reestimated Liability--Latest $1,160
Reestimated Recoverable--Latest 62
--
Net Reestimated Liability--Latest $1,098
======
Gross Cumulative Redundancy $ 40
======
</TABLE>
The table above presents the development of balance sheet liabilities
for 1983 through 1993. The top line of the table shows the
<PAGE> 6
estimated liability for unpaid losses and LAE recorded at the balance sheet
date for each of the indicated years. This liability represents the estimated
amount of losses and LAE for claims arising in all prior years that are
unpaid at the balance sheet date, including losses that had been incurred but
not yet reported to the Company. The upper portion of the table shows the
reestimated amount of the previously recorded liability based on experience as
of the end of each succeeding year. The estimate is increased or decreased as
more information becomes known about the frequency and severity of claims for
individual years.
The "cumulative redundancy (deficiency)" represents the aggregate
change in the estimates over all prior years. For example, the 1987 liability
has developed a $26,000,000 redundancy over six years and has been reflected in
income over the six years. The effects on income of the past three years of
changes in estimates of the liabilities for losses and LAE for all accident
years is shown in the reconciliation table.
The lower section of the table shows the cumulative amount paid with
respect to the previously recorded liability as of the end of each succeeding
year. For example, as of December 31, 1992, the Company had paid $441,000,000
of the currently estimated $508,000,000 of losses and LAE that have been
incurred as of the end of 1987; thus an estimated $67,000,000 of losses
incurred as of the end of 1987 remain unpaid as of the current financial
statement date.
In evaluating this information, it should be noted that each amount
includes the effects of all changes in amounts for prior periods. For example,
the amount of deficiency or redundancy related to losses settled in 1992, but
incurred in 1987, will be included in the cumulative deficiency or redundancy
amount for 1987 and each subsequent year. This table does not present accident
or policy year development data which readers may be more accustomed to
analyzing. Conditions and trends that have affected development of the
liability in the past may not necessarily occur in the future. Accordingly, it
may not be appropriate to extrapolate future redundancies or deficiencies based
on this table.
The Company limits the maximum net loss that can arise by large
risks or risks concentrated in areas of exposure by reinsuring (ceding) with
other insurers or reinsurers. Related thereto, the Company's retention levels
were last increased from $750,000 to $1,000,000 during 1989. Management does
not presently intend to raise such retention levels in 1994. The Company
reinsures with only financially sound companies. The composition of its
reinsurers has not changed, and the Company has not experienced any
uncollectible reinsurance amounts or coverage disputes with its reinsurers in
more than ten years.
Information concerning the Company's investment strategy and philosophy
is contained in page 32 of the Annual Report to Shareholders, incorporated
herein by reference (see Exhibit 13 to this filing). The Company's primary
strategy is to maintain liquidity to meet both its immediate and long-range
insurance obligations through the purchase and maintenance of medium-risk fixed
maturity and equity securities, while earning optimal returns on medium-risk
equity securities which offer growing dividends and capital appreciation. The
Company usually holds these securities to maturity unless there is a change in
credit risk or the securities are called by the issuer. Historically,
municipal bonds (with concentrations in the essential services, i.e. schools,
sewer,
<PAGE> 7
water, etc.) have been attractive to the Company due to their tax exempt
features. Because of Alternative Mininum Tax matters, the Company uses a blend
of tax-exempt and taxable fixed maturity securities. Investments in common
stocks have been made with an emphasis on securities with an annual
dividend yield of at least 4 to 5 percent and annual dividend increases. The
Company's strategy in equity investments is to identify approximately 10 to 12
companies in which it can accumulate 10 to 20 percent of their common stock.
As a long-term investor, a buy and hold strategy has been followed for many
years, resulting in an accumulation of a significant amount of unrealized
appreciation on equity securities.
As of December 31, 1993, CFC employed 1,975 persons.
ITEM 2. PROPERTIES
----------
CFC-I owns a fully leased 85,000 square feet office building in
downtown Cincinnati that is currently leased to Proctor and Gamble Company, a
non-affiliated company, on a net, net, net lease basis. This property is
carried in the financial statements at $747,782 as of December 31, 1993.
CFC-I also owns the Home Office building located on 75 acres of land in
Fairfield, Ohio. This building contains approximately 380,000 square feet.
The John J. and Thomas R. Schiff & Company occupies approximately 5,300 square
feet, and the balance of the building is occupied by CFC and its subsidiaries.
The property is carried in the financial statements at $13,024,736 as of
December 31, 1993.
CFC-I also owns the Fairfield Executive Center which is located on the
northwest corner of the home office property in Fairfield, Ohio. This is a
four-story office building containing approximately 124,000 square feet. CFC
and its subsidiaries occupy approximately 9% of the building, unaffiliated
tenants occupy approximately 78% of the building, and the balance is currently
available for lease. The property is carried in the financial statements at
$10,415,112 as of December 31, 1993.
The CLIC owns a four-story office building in the Tri-County area of
Cincinnati containing approximately 127,000 square feet. At the present time,
100% of the building is currently being leased. This property is carried in
the financial statements at $5,650,634 as of December 31, 1993.
ITEM 3. LEGAL PROCEEDINGS
-----------------
The Company is involved in no material litigation other than routine
litigation incident to the nature of the insurance industry.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
---------------------------------------------------
CFC filed with the commission on February 25, 1994, definitive proxy
statements and annual reports pursuant to Regulation 14A. Material filed was
the same as that described in Item 4 and is incorporated herein by reference.
No matters were submitted during the fourth quarter.
<PAGE> 8
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
-----------------------------------------------------------------
MATTERS
-------
This information is included in the Annual Report of the Registrant
to its shareholders on page 5 for the year ended December 31, 1993 and is
incorporated herein by reference (see Exhibit 13 to this filing).
ITEM 6. SELECTED FINANCIAL DATA
-----------------------
This information is included in the Annual Report of the Registrant
to its shareholders on pages 18 and 19 for the year ended December 31, 1993 and
is incorporated herein by reference (see Exhibit 13 to this filing).
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
----------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
This information is included in the Annual Report of the Registrant
to its shareholders on pages 31 and 32 for the year ended December 31, 1993
and is incorporated herein by reference (see Exhibit 13 to this filing).
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
--------- ---------- --- ------------- ----
(a) Financial Statements
The following consolidated financial statements of the
Registrant and its subsidiaries, included in the Annual
Report of the Registrant to its shareholders on pages 19 to
29 for the year ended December 31, 1993, are incorporated
herein by reference (see Exhibit 13 to this filing).
Independent Auditors' Report
Consolidated Balance Sheets--December 31, 1993 and 1992
Consolidated Statements of Income--Years ended
December 31, 1993, 1992, and 1991
Consolidated Statements of Cash Flows--Years ended
December 31, 1993, 1992, and 1991.
Consolidated Statements of Shareholders' Equity--Years
ended December 31, 1993, 1992, and 1991
Notes to Consolidated Financial Statements
(b) Supplementary Data
Selected quarterly financial data, included in the Annual
Report of the Registrant to its shareholders on Page 1 for
the year ended December 31, 1993, is incorporated herein by
reference (see Exhibit 13 to this filing).
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
------------------------------------------------------------
AND FINANCIAL DISCLOSURE
------------------------
There were no disagreements on accounting and financial disclosure
requirements with accountants within the last 24 months prior to December 31,
1993.
<PAGE> 9
PART III
CFC filed with the Commission on February 25, 1994 definitive proxy
statements pursuant to regulation 14-A. Material filed was the same as that
described in Item 10, Directors and Executive Officers of the Registrant; Item
11, Executive Compensation; Item 12, Security Ownership of Certain Beneficial
Owners and Management; Item 13, Certain Relationships and Related Transactions,
and is incorporated herein by reference.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
----------------------------------------------------------------
(a) Filed Documents. The following documents are filed as part of
this report:
1. Financial Statements--incorporated herein by reference
(see Exhibit 13 to this filing) as listed in Part II
of this Report.
2. Financial Statement Schedules and Independent
Auditors' Report:
Independent Auditors' Report
Schedule I--Summary of Investments Other than
Investments in Related Parties
Schedule V--Supplementary Insurance Information
Schedule VI--Reinsurance
Schedule IX--Short-Term Borrowings
Schedule X--Supplemental Information Concerning
Property-Casualty Insurance Operations
All other schedules are omitted because they are
not required, inapplicable or the information is
included in the financial statements or notes thereto.
3. Exhibits:
---------
Exhibit 11--Statement re computation of per share
earnings for years ended December 31, 1993, 1992,
and 1991
Exhibit 13--Material incorporated by reference from the
annual report of the registrant to its shareholders
for the year ended December 31, 1993
Exhibit 21--Subsidiaries of the registrant--information
contained in Part I of this report.
Exhibit 22--Notice of Annual Meeting of Shareholders
and Proxy Statement dated February 26, 1994 filed
with Securities and Exchange Commission,
Washington, D.C., 20549
Exhibit 23--Independent Auditors' Consent
Exhibit 28--Information from reports furnished to
state insurance regulatory authorities
(b) Reports on Form 8-K--NONE
<PAGE> 10
INDEPENDENT AUDITORS' REPORT
To The Shareholders and Board of Directors of
Cincinnati Financial Corporation
We have audited the consolidated financial statements of Cincinnati Financial
Corporation and its subsidiaries as of December 31, 1993 and 1992 and for each
of the three years in the period ended December 31, 1993, and have issued our
report thereon dated February 14, 1994; such consolidated financial statements
and report are included in your 1993 Annual Report to Shareholders and are
incorporated herein by reference. Our audits also included the consolidated
financial statement schedules of Cincinnati Financial Corporation and its
subsidiaries listed in Item 14(a)(2). These financial statement schedules are
the responsibility of the Company's management. Our responsibility is to
express an opinion based on our audits. In our opinion, such consolidated
financial statement schedules, when considered in relation to the basic
consolidated financial statements taken as a whole, present fairly in all
material respects the information set forth therein.
DELOITTE & TOUCHE
/s/ Deloitte & Touche
Cincinnati, Ohio
February 14, 1994
<PAGE> 11
<TABLE>
SCHEDULE I
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
SUMMARY OF INVESTMENTS--OTHER THAN INVESTMENTS IN RELATED PARTIES
DECEMBER 31, 1993
<CAPTION>
(000 omitted)
Amount at
which shown
Fair in balance
Type of Investment Cost Value sheet (b)
------------------ ---- ----- -----------
<S> <C> <C> <C>
Fixed Maturities:
Bonds:
United States Government and
government agencies and
authorities
The Cincinnati Indemnity Company. $ 196 $ 237 $ 199
The Cincinnati Casualty Company. 448 505 450
The Cincinnati Life Insurance
Company . . . . . . . . . . . . 4,024 4,591 4,065
---------- ---------- ----------
Total . . . . . . . . . . . . . . . . 4,668 5,333 4,714
---------- ---------- ----------
States, municipalities and political
subdivisions:
The Cincinnati Insurance Company . 672,493 715,337 673,053
The Cincinnati Indemnity Company . 4,341 4,768 4,343
The Cincinnati Casualty Company . 77,376 83,179 77,479
The Cincinnati Life Insurance
Company . . . . . . . . . . . . 4,641 4,563 4,642
---------- ---------- ----------
Total . . . . . . . . . . . . . . . . 758,851 807,847 759,517
---------- ---------- ----------
Public Utilities:
The Cincinnati Insurance Company . 28,128 28,808 28,175
The Cincinnati Casualty Company . 9,183 9,812 9,195
The Cincinnati Life Insurance
Company . . . . . . . . . . . . 28,860 30,490 28,881
---------- ---------- ----------
Total . . . . . . . . . . . . . . . . 66,171 69,110 66,251
---------- ---------- ----------
Convertibles and Bonds with warrants
attached:
The Cincinnati Insurance Company . 116,589 134,351 116,486
The Cincinnati Casualty Company . 8,958 9,796 8,960
The Cincinnati Life Insurance
Company. . . . . . . . . . . . . 27,508 28,909 27,572
Cincinnati Financial Corporation . 11,193 11,629 11,239
---------- ---------- ----------
Total . . . . . . . . . . . . . . . . 164,248 184,685 164,257
---------- ---------- ----------
All other Corporate Bonds:
The Cincinnati Insurance Company . 262,485 280,605 262,953
The Cincinnati Indemnity Company . 18,946 20,252 18,959
The Cincinnati Casualty Company . 64,816 70,265 64,956
The Cincinnati Life Insurance
Company . . . . . . . . . . . . 272,750 291,810 273,081
Cincinnati Financial Corporation . 145,013 151,810 144,967
---------- ---------- ----------
Total . . . . . . . . . . . . . . . . 764,010 814,742 764,916
---------- ---------- ----------
TOTAL FIXED MATURITIES $1,757,948 $1,881,717 $1,759,655
---------- ---------- ----------
</TABLE>
<PAGE> 12
<TABLE>
<CAPTION>
(000 omitted)
Amount at
which shown
Fair in balance
Type of Investment Cost Value sheet (b)
------------------ ---- ----- -----------
<S> <C> <C> <C>
Equity Securities:
Common Stocks
Public Utilities
The Cincinnati Insurance Company
Alltel Corp . . . . . . . . . . . $ 35,138 $ 115,820 $ 115,820
Other . . . . . . . . . . . . . . 34,485 51,971 51,971
The Cincinnati Indemnity Company
Other . . . . . . . . . . . . . . 884 978 978
The Cincinnati Casualty Company
Alltel Corp . . . . . . . . . . . 1,384 3,318 3,318
Other . . . . . . . . . . . . . . 13,436 18,455 18,455
The Cincinnati Life Ins. Company
Alltel Corp . . . . . . . . . . . 3,425 27,730 27,730
Other . . . . . . . . . . . . . . 32,882 53,903 53,903
Cincinnati Financial Corp.
Alltel Corp . . . . . . . . . . . 50,459 222,624 222,624
Other . . . . . . . . . . . . . . 34,751 51,848 51,848
--------- --------- ---------
Total . . . . . . . . . . . . . . . . 206,844 546,647 546,647
--------- --------- ---------
Banks, trust and insurance companies
The Cincinnati Insurance Company
Fifth Third Bancorp . . . . . . . 17,822 139,466 139,466
PNC Financial Corporation . . . . 12,456 40,455 40,455
Other . . . . . . . . . . . . . . 6,964 11,072 11,072
The Cincinnati Casualty Company
Fifth Third Bancorp . . . . . . . 1,716 10,868 10,868
The Cincinnati Life Ins. Company
Fifth Third Bancorp . . . . . . . 3,511 10,573 10,573
PNC Financial Corporation . . . . 747 4,350 4,350
Other . . . . . . . . . . . . . . 1,510 2,836 2,836
Cincinnati Financial Corporation
Fifth Third Bancorp . . . . . . . 100,624 476,618 476,618
PNC Financial Corporation . . . . 36,639 74,414 74,414
Other . . . . . . . . . . . . . . 50,760 74,497 74,497
--------- --------- ---------
Total . . . . . . . . . . . . . . . . 232,749 845,149 845,149
--------- --------- ---------
</TABLE>
<PAGE> 13
<TABLE>
<CAPTION>
(000 omitted)
Amount at
which shown
Fair in balance
Type of Investment Cost Value sheet (b)
------------------ ---- ----- -----------
<S> <C> <C> <C>
Industrial miscellaneous and all other
The Cincinnati Insurance Company
Exxon Corporation . . . . . . . . $ 39,929 $ 58,511 $ 58,511
All Other . . . . . . . . . . . . 123,940 189,329 189,329
The Cincinnati Indemnity Company
Exxon Corporation . . . . . . . . 4,484 4,734 4,734
All Other . . . . . . . . . . . . 2,707 2,622 2,622
The Cincinnati Casualty Company
Exxon Corporation . . . . . . . . 9,977 11,363 11,363
All Other . . . . . . . . . . . . 5,837 5,901 5,901
The Cincinnati Life Insurance Company
Exxon Corporation . . . . . . . . 9,724 14,613 14,613
All Other . . . . . . . . . . . . 6,026 14,181 14,181
Cincinnati Financial Corporation
Exxon Corporation . . . . . . . . 12,648 14,519 14,519
All Other . . . . . . . . . . . . 30,795 39,930 39,930
CFC Investment Company. . . . . . . 6,044 6,044 6,044
---------- ---------- ----------
Total . . . . . . . . . . . . . . . . 252,111 361,747 361,747
---------- ---------- ----------
Nonredeemable preferred stocks
The Cincinnati Insurance Company. . 348,103 401,893 401,893
The Cincinnati Casualty Company . . 27,647 31,726 31,726
The Cincinnati Life Ins. Company. . 108,778 122,021 122,021
Cincinnati Financial Corporation. . 7,940 9,620 9.620
---------- ---------- ----------
Total . . . . . . . . . . . . . . . . 492,468 565,260 565,260
---------- ---------- ----------
TOTAL EQUITY SECURITIES . . . . . . . . $1,184,172 $2,318,803 $2,318,803
---------- ---------- ----------
Mortgage loans on real estate
The Cincinnati Life Ins. Company . $ 2,227 XXXXXXXXXX $ 2,227
CFC-I Investment Company . . . . . 2,515 XXXXXXXXXX 2,515
------ ------
Total . . . . . . . . . . . . . . . 4,742 XXXXXXXXXX 4,742
------ ------
Real Estate
The Cincinnati Life Ins. Company. . 5,667 XXXXXXXXXX 5,667
CFC-I Investment Company . . . . . 11,163 XXXXXXXXXX 11,163
------ ------
Total . . . . . . . . . . . . . . . . 16,830 XXXXXXXXXX 16,830
------ ------
Policy Loans
The Cincinnati Life Ins. Company. . 16,792 XXXXXXXXXX 16,792
------ ------
TOTAL OTHER INVESTED ASSETS . . . . . . 38,364 XXXXXXXXXX 38,364
------ ------
TOTAL INVESTMENTS . . . . . . . . . . . $2,980,484 XXXXXXXXXX $4,116,822
========== ==========
<FN>
(b) equal to amount at which carried in balance sheet
(1) Securities of the Fifth Third Bancorp are equal to 13.85% of the assets of the registrant.
(2) Securities of the Alltel Corp. are equal to 8.03% of the assets of the registrant.
(3) Securities of PNC Financial Corporation are equal to 2.59% of the assets of the registrant.
(4) Securities of Exxon Corporation are equal to 2.25% of the assets of the registrant.
</TABLE>
<PAGE> 14
<TABLE>
<CAPTION>
SCHEDULE V CINCINNATI FINANCIAL CORPORATION & SUBSIDIARIES
SUPPLEMENTARY INSURANCE INFORMATION
FOR YEARS ENDED DECEMBER 31, 1993, 1992, AND 1991
(000 omitted)
Column A Column B Column C Column D Column E Column F Column G
- -------- -------- --------- -------- -------- -------- --------
Policy
Benefits, Other
Deferred Losses, Policy
Policy Claims & Claims & Net
Acquisition Expense Unearned Benefits Premium Investment
Segment Cost Losses Premiums Payable Revenue Income
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1993
Property
and Liability
Insurance $ 64,086 $1,365,052 $357,515 $21,582 $1,092,135 $ 168,190
Life/Health
Insuance 40,005 354,028 1,762 10,557 48,656 45,844
--------- ---------- -------- ------- ---------- --------
Total $ 104,091 $1,719,080 $359,277 $32,139 $1,140,791 $ 214,034
========= ========== ======== ======= ========== ========
1992
Property
and Liability
Insurance $ 58,883 $1,200,182 $321,173 $19,688 $ 992,335 $ 156,958
Life/Health
Insurance 38,451 322,682 1,297 12,334 46,437 44,328
--------- ---------- -------- ------- ---------- --------
Total $ 97,334 $1,522,864 $322,470 $32,022 $1,038,772 $201,286
========= ========== ======== ======= ========== ========
1991
Property
and Liability
Insurance $ 55,157 $1,056,923 $296,723 $17,226 $ 903,465 $ 126,332
Life/Health
Insurance 38,424 278,824 1,554 12,089 44,111 41,847
--------- ---------- -------- ------- ---------- --------
$ 93,581 $1,335,747 $298,277 $29,315 $ 947,576 $ 168,179
========= ========== ======== ======= ========== ========
</TABLE>
<TABLE>
Column H Column I Column J Column K
- -------- -------- -------- --------
<CAPTION>
Benefits, Amortization
Claims of Deferred
Losses & Policy Other
Settlement Acquisition Operating Premium
Expenses Costs Expenses Written
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
$788,318 $58,883 $252,456 $1,123,780
44,160 7,760 13,146 7,459(4)
- -------- ------- -------- ----------
$832,478 $66,643 $265,602 $1,131,239
======== ======= ======== ==========
$721,800 $55,157 $241,983 $1,014,971
44,310 9,719 13,343 8,402(4)
- -------- ------- -------- ----------
$766,110 $64,876 $255,326 $1,023,373
======== ======= ======== ==========
$639,187 $50,872 $222,250 $ 930,296
40,761 9,252 12,725 7,560(4)
- -------- ------- -------- ----------
$679,948 $60,124 $234,975 $ 937,856
======== ======= ======== ==========
<FN>
Notes to Schedule V:
- -------------------
(1) The sum of columns C, D, & E is equal to the sum of Losses and
loss expense reserves, Life policy reserves, and Unearned
premium reserves reported in the Company's consolidated balance
sheets.
(2) The sum of columns I & J is equal to the sum of Commissions,
Other operating expenses, Taxes, licenses, and fees, Increase in
deferred acquisition costs, and Other expenses shown in the
consolidated statements of income, less other expenses not
applicable to the above insurance segments.
(3) Investment income amounts for the above insurance segments
represent investment income on the actual investment securities
in each such segment. Investment expenses, which are deducted
from investment income, and other operating expenses include
both expenses incurred directly in the insurance segments and
expenses allocated to and among the insurance segments based on
historical usage factors. The life/health segment is conducted
totally within one subsidiary that has no other segments.
(4) Amounts represent written premiums on accident and health
insurance business only.
</TABLE>
<PAGE> 15
<TABLE>
<CAPTION>
SCHEDULE VI
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
REINSURANCE
FOR YEARS ENDING DECEMBER 31, 1993, 1992, AND 1991
(000 omitted)
Column A Column B Column C Column D Column E Column F
- -------- -------- -------- -------- -------- --------
Ceded to Assumed Percentage of
Gross Other from Other Net Amount Assumed
Amount Companies Companies Amount to Net
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1993
- ----
Life Insurance in Force $6,740,142 $761,452 $ 25,712 $6,004,402 .4%
========== ======== ======== ==========
Premiums
Life/Health Insurance $ 51,011 $ 2,521 $ 166 $ 48,656 .3%
Property/Liability Ins. 1,114,330 87,820 65,625 1,092,135 6.0%
---------- -------- -------- ---------- ----
Total Premiums $1,165,341 $ 90,341 $ 65,791 $1,140,791 5.8%
========== ======== ======== ==========
1992
- ----
Life Insurance in Force $6,079,681 $640,756 $ 31,540 $5,470,465 .6%
========== ======== ======== ==========
Premiums
Life/Health Insurance $ 48,655 $ 2,432 $ 214 $ 46,437 .5%
Property/Liability Ins. 1,017,814 72,415 46,936 992,335 4.7%
---------- -------- -------- ---------- ----
Total Premiums $1,066,469 $ 74,847 $ 47,150 $1,038,772 4.5%
========== ======== ======== ==========
1991
- ----
Life Insurance in Force $5,557,675 $553,016 $ 40,916 $5,045,575 .8%
========== ======== ======== ==========
Premiums
Life/Health Insurance $ 46,261 $ 2,321 $ 171 $ 44,111 .4%
Property/Liability Ins. 941,544 64,635 26,556 903,465 2.9%
---------- -------- -------- ---------- ----
Total Premiums $ 987,805 $ 66,956 $ 26,727 $ 947,576 2.8%
========== ======== ======== ==========
</TABLE>
<PAGE> 16
<TABLE>
<CAPTION>
SCHEDULE IX
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
SHORT-TERM BORROWINGS
DECEMBER 31, 1993, 1992, 1991
(000 omitted)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
-------- -------- -------- -------- -------- --------
Weighted
Category of Maximum Amount Average Amount Average
Aggregate Outstanding Outstanding Interest
Short-Term Balance at Weighted Average During the During the Rate During
Borrowings End of Period Interest Rate Period Period The Period
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
YEAR ENDED DECEMBER 31, 1993:
Bank Demand
Notes $55,746 4.3% $71,745 $54,741 4.6%
Commercial
Paper $22,320 3.4% $25,073 $14,285 3.4%
YEAR ENDED DECEMBER 31, 1992:
Bank Demand
Notes $50,251 4.5% $97,987 $66,859 4.9%
Commercial
Paper $16,701 3.4% $20,892 $14,309 3.9%
YEAR ENDED DECEMBER 31, 1991:
Bank Demand
Notes $97,022 6.2% $97,022 $77,595 7.4%
Commercial
Paper $ 9,349 4.5% $18,063 $13,943 6.1%
<FN>
The average interest rate was determined by dividing the total interest
expenses incurred by the average daily borrowing.
</TABLE>
<PAGE> 17
<TABLE>
<CAPTION>
SCHEDULE X
CINCINNATI FINANCIAL CORPORATION & SUBSIDIARIES
SUPPLEMENTAL INFORMATION CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS
FOR YEARS ENDED DECEMBER 31, 1993, 1992, AND 1991
(000 omitted)
Column A Column B Column C Column D Column E Column F Column G Column H
- -------- -------- -------- -------- -------- -------- -------- --------
Claims and
Claim
Adjustment
Expenses
Reserves for Incurred
Deferred Unpaid Claims Discount, Related to
Affiliation Policy and Claim if any, Net (1) ----------
with Acquisition Adjustment Deducted in Unearned Earned Investment Current
Registrant Costs Expenses Column C Premiums Premiums Incomes Year
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Consolidated
Property-Casualty
Entities
1993 $64,086 $1,365,052 $-0- $357,515 $1,092,135 $168,190 $828,978
======= ========== ==== ======== ========== ======== ========
1992 $58,883 $1,200,182 $-0- $321,173 $ 992,335 $156,958 $752,993
======= ========== ==== ======== ========== ======== ========
1991 $55,157 $1,056,923 $-0- $296,723 $ 903,465 $126,332 $603,635
======= ========== ==== ======== ========== ======== ========
</TABLE>
<TABLE>
Column H Column I Column J Column K
- -------- -------- -------- --------
Claims and
Claim
Adjustment
Expenses
Incurred Amortization Paid
Related to of Deferred Claims
- ---------- (2) Policy and Claim
Prior Acquisition Adjustment Premiums
Years Costs Expenses Written
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
$(39,769) $58,883 $633,677 $1,123,780
======== ======= ======== ==========
$(30,351) $55,157 $571,018 $1,014,971
======== ======= ======== ==========
$ 36,456 $50,872 $486,463 $ 930,296
======== ======= ======== ==========
</TABLE>
<PAGE> 18
S I G N A T U R E S
Pursuant to the requirements of Section 13 or 15 (d) of the
Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly authorized.
CINCINNATI FINANCIAL CORPORATION
<TABLE>
<CAPTION>
Signature Title Date
--------- ----- ----
<S> <C> <C>
/S/ Robert B. Morgan Chief Executive March 18, 1994
- ------------------------------------------------ Officer, President
Robert B. Morgan and Director
/S/ Robert J. Driehaus Financial Vice President March 18, 1994
- ------------------------------------------------ Treasurer and Director
Robert J. Driehaus (Principal Financial Officer)
(Principal Accounting Officer)
- ------------------------------------------------ Secretary and March , 1994
Vincent H. Beckman Director
Director March , 1994
- ------------------------------------------------
Michael Brown
/S/ Richard M. Burridge Director March 18, 1994
- ------------------------------------------------
Richard M. Burridge
- ------------------------------------------------ Director March , 1994
David R. Huhn
/S/ Kenneth C. Lichtendahl Director March 22, 1994
- ------------------------------------------------
Kenneth C. Lichtendahl
/S/ Jackson H. Randolph Director March 18, 1994
- ------------------------------------------------
Jackson H. Randolph
</TABLE>
<PAGE> 19
<TABLE>
Signature Title Date
--------- ----- ----
<S> <C> <C>
- ------------------------------------------------------- Director March , 1994
John Sawyer
/S/ John J. Schiff Director March 18, 1994
- -------------------------------------------------------
John J. Schiff
/S/ John J. Schiff, Jr. Chairman of the March 18, 1994
- ------------------------------------------------------- Board and
John J. Schiff, Jr. Director
Director March , 1994
- -------------------------------------------------------
Robert C. Schiff
/S/ Thomas R. Schiff Director March 22, 1994
- -------------------------------------------------------
Thomas R. Schiff
- ------------------------------------------------------- Director March , 1994
Harry M. Turner
- ------------------------------------------------------- Director March , 1994
Larry R. Webb
- ------------------------------------------------------- Director March , 1994
Alan R. Weiler
/S/ William H. Zimmer Vice Chairman of the Board March 18, 1994
- ------------------------------------------------------- and Director
William H. Zimmer
</TABLE>
<PAGE> 20
Index of Exhibits
Exhibit 11-- Statement re computation of per share earnings for
the years ended December 31, 1993, 1992, and 1991.
Exhibit 13-- Material incorporated by reference from the annual report of
the registrant to the shareholders for the year ended December
31, 1993.
Segment information from page 30 (incorporated into Item 1).
Text data from pages 7, 9, 10, 11 and 12 (incorporated into
Item 1).
1993 Premium chart from page 9 (incorporated into Item 1).
"Price range of Common Stock" section from page 5
(incorporated into Item 5).
"Selected Financial Information" from pages 18 and 19
(incorporated into Item 6).
"Management Discussion" from pages 31 and 32 (incorporated
into Items 1 and 7).
Independent Auditors' Report and Financial Statements from
pages 19 thru 29 (incorporated into Item 8).
"Selected Quarterly Financial Data" from page 1 (incorporated
into Item 8).
Exhibit 23-- Independent Auditors' Consent
Exhibit 28-- Information from reports furnished to state insurance
regulatory authorities.
<PAGE> 1
<TABLE>
<CAPTION>
EXHIBIT 11
CINCINNATI FINANCIAL CORPORATION
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
(in thousands except for per share amounts)
1993 1992 1991
---- ---- ----
<S> <C> <C> <C>
Weighted average shares outstanding 50,119 49,733 49,410*
Equivalent shares assumed to be
outstanding for:
Stock options: 321 343 363*
Convertible debentures 1,626 1,039 33*
-------- -------- ---------
Number of shares for primary
computation 52,066 51,115 49,806*
Other dilutive equivalent shares--
stock options -- 139 3*
-------- -------- ---------
Number of shares assuming full
dilution 52,066 51,254 49,809*
======== ======== =========
Net income before cumulative effect
of change in accounting for income
taxes $202,179 $171,325 $146,280
Interest on convertible debentures--
net of tax 2,858 1,887 12
Cumulative effect of change in
accounting for income taxes 13,845 -0- -0-
-------- -------- ---------
Net income for per share computation $218,882 $173,212 $146,292
======== ======== =========
Earnings per share:
Primary before cumulative effect of
change in accounting for income
taxes $ 3.94 $ 3.39 $ 2.9*
Cumulative effect of change in
accounting for income taxes .26 -0- -0-
-------- -------- ---------
Total Primary $ 4.20 $ 3.39 $ 2.94*
======== ======== =========
Fully Diluted $ 4.20 $ 3.38 $ 2.94*
======== ======== =========
<FN>
*Adjusted to reflect a 3-for-1 stock split April 24, 1992.
</TABLE>
<PAGE> 1
EXHIBIT 13
Material incorporated by reference from the annual report of the registrant to
the shareholders for the year ended December 31, 1993.
Segment information from page 30 (incorporated into Item 1).
------------------------------------------------------------
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
The Company operates principally in two industries--property and casualty
insurance and life insurance. Information concerning the Company's operations
in different industries is presented below (000's omitted). Revenue is
primarily from unaffiliated customers. Identifiable assets by industry are
those assets that are used in the Company's operations in each industry.
Corporate assets are principally cash and marketable securities.
<TABLE>
<CAPTION>
Revenue Income Before Income Taxes
------------------------------------------- -------------------------------------------
1993 1992 1991 1993 1992 1991
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Property/casualty
insurance . . . . . . . . $ 1,092,135 $ 992,335 $ 903,465 $ (3,429) $ (22,687) $ (5,067)
----------- ----------- -----------
Life/health insurance . . . . 48,656 46,437 44,111 357 (2,880) (2,644)
------------ ----------- -----------
Investment income (less expenses):
Required interest
on life reserves . . . . . 16,444 17,568 15,495
Other . . . . . . . . . . 222,992 201,374 177,725 222,992 201,374 177,725
----------- ----------- -----------
239,436 218,942 193,220
----------- ----------- -----------
Realized gain on investments 51,529 35,885 7,641 51,529 35,885 7,641
----------- ----------- -----------
Other . . . . . . . . . . . . 10,396 10,552 12,698 5,578 6,138 8,512
----------- ----------- -----------
General corporate expenses . (10,032) (8,636) (9,036)
----------- ----------- -----------
Total . . . . . . . . . $ 1,442,152 $ 1,304,151 $ 1,161,135 $ 266,995 $ 209,194 $ 177,131
=========== =========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Identifiable Assets
-------------------------------------------
1993 1992 1991
----------- ----------- -----------
<S> <C> <C> <C>
Property/casualty
insurance . . . . . . . . $ 2,736,960 $ 2,463,767 $ 2,136,925
Life/health insurance . . . . 688,516 617,221 561,206
Other . . . . . . . . . . . . 42,822 44,530 47,224
Corporate assets . . . . . . 1,133,990 973,195 768,394
----------- ----------- -----------
$ 4,602,288 $ 4,098,713 $ 3,513,749
=========== =========== ===========
</TABLE>
<PAGE> 2
Text data from pages 7, 9, 10, 11 and 12 (incorporated into Item
----------------------------------------------------------------
1).
---
PROPERTY CASUALTY INSURANCE
- ---------------------------
Double-digit growth returned in 1993 as gross written premiums of our three
property casualty affiliates rose 11.6 percent to $1.217 billion. Soft market
conditions and price competition for commercial business lingered through the
year. However, we saw healthy growth above our 15 percent general target in six
established, profitable states with premiums in the range of thirty to sixty
million dollars each. Expected growth continued in start-up states like Kansas,
Missouri and Nebraska.
The combined loss and expense ratio improved to 100.1 percent versus 101.8
percent for 1992. This indicates that claims and expenses cost slightly more
than premiums. The Cincinnati Companies once again outperformed the industry
average, estimated between 108 and 109 percent. Because we don't market in
California and don't write flood insurance, we were unscathed by the
earthquakes, fires, mud and floods that filled American television screens this
year. A March blizzard in eastern states and severe storms in the Midwest in
June brought us 1993 catastrophe losses of $22.6 million, improved from $27.4
million last year.
The pace and magnitude of recent natural disasters caused us to review our
potential liability for huge claims in coastal areas. We closed four agencies
in South Carolina this November, controlling our exposure there estimated in
the range of two to three billion dollars. Similar action was not necessary in
other coastal states. Their more favorable regulatory climates allow us to make
a profit in good years to buffer catastrophic losses in other years. To achieve
growth as well as disperse risks geographically, we'll begin marketing during
1994 in Maryland and Arkansas. We're also considering new territories in high
growth states of Michigan and Missouri.
We passed a milestone this year as commercial and personal umbrella
liability business reached $100 million. Our premiere coverage form gives
agents a quality product to protect families and businesses from large damage
awards and defense costs.
COMMERCIAL LINES
Gross written premiums from commercial lines totaled $831.7 million.
Insurers price commercial general liability and workers' compensation
policies based on estimates of payroll, sales and other factors that measure
the risk. When actual results are reviewed at the end of the policy term, the
policyholder may deserve a refund or need to pay additional premium. To improve
our service for these accounts, we are placing our own staff auditors in field
territories. Unlike independent auditors we previously hired, they form
relationships and advise policyholders about keeping records, limiting
liabilities and developing accurate estimates of exposures to risk. Use of
independent contractors will be phased out and staff auditors added in areas of
Indiana, North
<PAGE> 3
Carolina and Pennsylvania during 1994.
17.8 percent of our business comes from workers' compensation. Loss
experience on the business written directly through our agents has gradually
improved. Based on our volume in a state, regulators also levy assessments,
which are our share of the loss from workers' compensation business no insurer
was willing to write. In 1993, our assessments totaled $17.1 million.
During 1993, we retooled our Dentist's Package Policy and Electronic Data
Processing coverage to give agents more competitive, up-to-date products. Early
in 1994, we began state-by-state launching of a new Financial Institutions
Package and revised Kidnap/Ransom and Extortion coverage. Later this year, a
new Service Industry Bond will be introduced to cover cleaning and messenger
services, locksmiths, decorators, appliance caterers and similar risks.
Marketing representatives will personally call attention to these important
products during agency visits.
Consumers want the three-year rate guarantee Cincinnati offers on many
coverages. This guarantee means stable prices for policyholders and less
expense for us as we keep policies on our books without annual renewal
paperwork. Agents who expect prices
<PAGE> 4
to go up in the near future have begun transferring accounts from other
carriers to Cincinnati.
PERSONAL LINES
Gross written premiums from personal lines totaled $385.1 million.
This year underwriters conducted reunderwriting programs with many
agencies. Agents responded positively to the underwriters' personal interest
and visits. As agents pay more attention to renewal accounts, their clients are
getting improved service and many agencies find they are underwriting more
profitably.
Product plans for 1994 include revision of Cincinnati's Personal Umbrella
Liability Policy and development of a Residential Business Program.
<PAGE> 5
LIFE INSURANCE
- --------------
The Cincinnati Life Insurance Company's 1993 earnings reached $28.4 million
after taxes and realized gains, up 19.6 percent from 1992. Operating earnings
were $18.1 million versus $17 million last year, up 5.9 percent. Earned
premiums rose 4.8 percent to $48.7 million.
Our independent agents sell life insurance so customers can depend on them
for the convenience of full service. Additionally, an agency's life insurance
earnings are not subject to the same cyclical ups and downs as their property
casualty business. The increased account retention and the stream of income
from life sales are strong motivators for customer-driven agents--and we
benefit right along with them.
Local independent agencies are Cincinnati Life's primary distribution
system. We have helped recruit life producers for them, streamlined our
portfolio and upgraded policies that appeal to their existing accounts. These
agencies produced approximately 80 percent of new life insurance business in
1993.
A consumer flight to quality is developing in response to highly publicized
criticism of some life insurers and their practices. Cincinnati Life is
financially strong, with $277 million of surplus. Our policyholders can trust
the established integrity of the Cincinnati Companies and our agents.
We began marketing a new series of guaranteed premium whole life products
during 1993. Unlike interest-sensitive universal life policies popular in the
1980s, they feature fixed premiums and guaranteed cash value buildup for those
who need absolute peace of mind. The Last Survivor Joint Whole Life Policy
provides cash to pay estate taxes; the Joint Whole Life Policy covers two
people and is payable at the first death to fund children's education, mortgage
protection, income replacement or business buy-sell agreements. Life regional
directors and property casualty marketing representatives visited agencies
personally to introduce this series of products.
During 1993, Cincinnati Life invited the Corporation's associates to "Think
Life" and tapped their most promising ideas as starting points for 1994
activities. We created materials to help agents discover prospects for two
basic life products; our new HomeOwner Protector offers decreasing term
coverage for mortgages and the Juvenile Convertible Term Policy offers a death
benefit plus an option for conversion to permanent insurance without evidence
of insurability. These products add practical value to a family's insurance
program and their simplicity should encourage agents just beginning to
understand the benefits of cross-selling.
<PAGE> 6
FINANCIAL SERVICES
CFC Investment Company's 1993 pre-tax earnings were $2.9 million, up 5.9
percent compared to 1992. Tax expense (including adjustments to prior periods)
reduced 1993 net income to $1.7 million versus $1.9 million in 1992.
Our independent agents provide added financial services for their business
clients in order to strengthen relationships and to complete their picture of
the client's overall financial health. CFC Investment Company exists to capture
this advantage for Cincinnati's agents, their clients and other customers in
our geographic operating area.
The Company writes leases and loans on office and medical equipment,
computers, vehicles and many other types of equipment. Although 1993's volume
of new finance transactions exceeded 1992's, low interest rate availability led
to many early account payoffs. Receivables declined 6 percent to $22.8 million
as of December 31, 1993. Fully 99.7 percent of accounts were paid current at
year-end.
CFC Investment Company also manages corporately owned real estate,
including CFC Headquarters properties and three office buildings held for
investment purposes. The investment buildings continue to average 95 percent
occupancy and operate with positive cash flow.
Two years ago, the Cincinnati Companies committed to a program of planning
for agency perpetuation. CFC Investment Company contributed to this effort in
cases where principals of profitable agencies suddenly died or retired without
good plans. The Company took temporary ownership while new independent owners
were recruited and trained. Of three agencies held at year-end, two were
successfully turned over to new owners on January 1, 1994, protecting $4.4
million of Cincinnati premiums.
<PAGE> 7
1993 Premium chart from page 9 (incorporated into Item 1).
----------------------------------------------------------
<TABLE>
<CAPTION>
1993 GROSS WRITTEN PREMIUMS BY LINES OF BUSINESS (DOLLARS IN MILLIONS)
Private
State of Home- Passenger Commercial Multi- Workers'
Operation owners Auto Auto Peril Compensation Bond
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AL 7.2 8.6 4.2 10.5 5.0 0.1
AZ 0.0 0.0 4.8 6.5 0.3 0.0
FL 3.0 5.8 6.2 10.3 5.0 0.8
GA 12.3 22.4 8.1 12.7 14.9 0.6
IL 8.3 14.8 13.7 25.9 30.9 1.6
IN 14.1 32.1 12.1 23.0 20.4 1.1
IA 1.3 2.7 3.3 8.3 9.4 0.0
KS 0.2 0.2 1.0 2.6 2.1 0.0
KY 2.7 6.6 3.8 8.1 4.9 0.6
MI 5.1 0.0 7.4 17.6 13.3 0.6
MO 0.2 0.1 1.3 2.8 2.3 0.0
NE 0.4 0.8 1.4 2.5 3.7 0.0
NC 0.0 0.8 7.3 13.2 8.4 0.3
OH 43.1 122.0 37.5 67.5 0.0 5.0
PA 0.0 0.0 9.0 13.2 17.1 0.8
SC 0.0 0.0 5.1 8.2 3.5 0.1
TN 1.0 1.3 4.0 6.5 4.1 0.8
VA 4.6 8.1 9.1 14.2 8.7 0.3
WV 0.3 0.0 1.6 2.2 0.0 0.1
WI 2.7 7.6 2.8 5.8 6.3 0.2
All Other
States 0.2 0.2 1.1 2.8 4.9 0.2
Assumed
Reinsurance 0.3 0.1 2.0 6.1 51.5 0.0
1993
TOTALS 106.0 234.2 146.8 270.5 216.7 13.2
% of Total
1993 8.7 19.2 12.1 22.2 17.8 1.1
1992
Totals 100.7 227.1 127.2 234.5 174.6 12.3
% of Total
1992 9.2 20.8 11.7 21.5 16.0 1.1
</TABLE>
<TABLE>
<CAPTION> %
State of General Umbrella Product Other 1993 1992 Increase/
Operation Liability Liability Liability Lines Totals Totals Decrease
<S> <C> <C> <C> <C> <C> <C> <C>
AL 0.8 4.6 0.5 2.6 44.1 40.5 8.9
AZ 0.9 1.4 0.4 0.5 14.8 13.8 7.2
FL 1.6 3.2 0.4 3.1 39.4 37.5 5.1
GA 1.0 4.9 1.0 4.0 81.9 81.0 1.1
IL 4.8 8.8 2.1 7.4 118.3 107.1 10.5
IN 2.9 10.5 2.5 6.1 124.8 116.8 6.8
IA 0.8 3.5 0.7 1.3 31.3 26.7 17.2
KS 0.1 0.6 0.2 0.4 7.4 4.8 54.2
KY 1.2 2.6 0.6 1.5 32.6 27.7 17.7
MI 1.9 6.0 1.3 3.6 56.8 47.3 20.1
MO 0.2 0.8 0.2 0.6 8.5 3.6 136.1
NE 0.2 0.8 0.2 0.4 10.4 7.7 35.1
NC 1.1 3.8 0.8 1.7 37.4 29.6 26.4
OH 10.2 34.0 5.9 17.4 342.6 329.8 3.9
PA 2.3 3.1 1.0 2.6 49.1 37.9 29.6
SC 0.7 2.0 0.4 1.2 21.2 20.6 2.9
TN 0.7 2.2 0.6 1.0 22.2 19.2 15.6
VA 1.5 4.1 0.9 2.5 53.0 49.0 8.2
WV 0.2 0.6 0.1 0.4 5.5 5.4 1.9
WI 0.5 2.7 0.5 1.5 30.6 26.4 15.9
All Other
States 0.6 0.0 0.8 2.6 13.4 7.3 82.6
Assumed
Reinsurance 0.3 0.0 1.1 10.1 71.5 50.2 42.4
1993
Totals 34.5 100.2 22.2 72.5 1216.8 -- 11.6
% of Total
1993 2.8 8.2 1.8 6.1 100.0 -- --
1992
Totals 30.7 92.5 25.0 65.2 -- 1089.9 --
% of Total
1992 2.8 8.5 2.3 6.1 -- 100.0 --
</TABLE>
<PAGE> 8
"Price range of Common Stock" section from page 5 (incorporated
---------------------------------------------------------------
into Item 5).
-------------
PRICE RANGE OF COMMON STOCK
Cincinnati Financial Corporation had approximately 8,850 shareholders of
record as of December 31, 1993. Most of CFC's 1,975 associates own stock in
their Company.
CFC shares are traded nationally over the counter. Closing sale price is
quoted under the symbol CINF on the National Market List of the NASDAQ
(National Association of Securities Dealers Automated Quotation System). Tables
below show the price range reported for each quarter based on daily last sale
prices. Sale prices and dividends paid have been adjusted to reflect the
three-for-one stock split on April 24, 1992.
<TABLE>
<CAPTION>
1993
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
QUARTER 1ST 2ND 3RD 4TH
HIGH $66 $63 7/8 $60 3/4 $59 1/8
LOW 58 3/4 51 56 3/4 51 1/2
DIVIDEND PAID .26 .28 .28 .28
</TABLE>
<TABLE>
<CAPTION>
1992
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
QUARTER 1ST 2ND 3RD 4TH
HIGH $40 7/8 $45 1/4 $52 3/4 $61 3/4
LOW 34 3/8 40 1/8 44 54 1/4
DIVIDEND PAID .23 .25 .26 .26
</TABLE>
<PAGE> 9
"Selected Financial Information" from pages 18 and 19
-----------------------------------------------------
(incorporated into Item 6).
---------------------------
SELECTED FINANCIAL INFORMATION
(000 omitted except per share amounts)
<TABLE>
<CAPTION>
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
- ----------------------------------------------------------------------------------------------------------------------------
Years Ended December 31,
1993 1992 1991 1990
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
TOTAL ASSETS*..................................... $ 4,602,288 $ 4,098,713 $ 3,513,749 $ 2,626,156
LONG-TERM OBLIGATIONS............................. $ 80,000 $ 80,000 $ 182 $ 202
- ----------------------------------------------------------------------------------------------------------------------------
REVENUES
Premium Income.................................... $ 1,140,791 $ 1,038,772 $ 947,576 $ 871,196
Investment Income (Less Expense).................. 239,436 218,942 193,220 167,425
Realized Gain (Loss) on Investments............... 51,529 35,885 7,641 1,488
Other Income...................................... 10,396 10,552 12,698 8,822
NET INCOME BEFORE REALIZED GAINS..................
AND LOSSES ON INVESTMENTS
In Total.......................................... $ 182,530* 147,669 $ 141,273 $ 128,052
Per Common Share.................................. 3.56* 2.93 2.84 2.59
NET INCOME
In Total.......................................... $ 216,024* 171,325 $ 146,280 $ 128,962
Per Common Share.................................. 4.20* 3.39 2.94 2.61
- ----------------------------------------------------------------------------------------------------------------------------
CASH DIVIDENDS DECLARED
Per Common Share.................................. $ 1.12 $ 1.03 $ .91 $ .81
CASH DIVIDENDS PAID
Per Common Share.................................. $ 1.10 $ 1.00 $ .89 $ .79
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* 1993 earnings include a credit for $13,845,000 ($.26 per share) cumulative
effect of a change in the method of accounting for income taxes to conform
with FASB Statement No. 109; and 1993 earnings include a net charge of
$8,641,000 ($.17 per share) related to the effect of the 1993 increase in
income tax rates on deferred taxes recorded for various prior year items.
Total assets prior to 1993 have been restated to reflect changes required by
FASB Statement No. 113.
<TABLE>
<CAPTION>
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
- ----------------------------------------------------------------------------------------------------------------------------
1989 1988 1987 1986
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
TOTAL ASSETS*..................................... $ 2,602,990 $ 2,163,341 $ 1,828,032 $ 1,581,591
LONG-TERM OBLIGATIONS............................. $ 753 $ 890 $ 3,898 $ 8,468
- ----------------------------------------------------------------------------------------------------------------------------
REVENUES
Premium Income.................................... $ 813,313 $ 754,335 $ 747,266 $ 666,892
Investment Income (Less Expense).................. 149,285 130,885 108,915 90,875
Realized Gain (Loss) on Investments............... 4,678 6,423 3,845 13,881
Other Income...................................... 7,134 10,281 7,686 1,932
NET INCOME BEFORE REALIZED GAINS..................
AND LOSSES ON INVESTMENTS
In Total.......................................... $ 111,477 $ 124,618 $ 90,714 $ 83,477
Per Common Share.................................. 2.27 2.57 1.89 1.72
NET INCOME
In Total.......................................... $ 114,490 $ 128,748 $ 93,154 $ 93,471
Per Common Share.................................. 2.33 2.65 1.94 1.93
- ----------------------------------------------------------------------------------------------------------------------------
CASH DIVIDENDS DECLARED
Per Common Share.................................. $ .72 $ .58 $ .49 $ .42
CASH DIVIDENDS PAID
Per Common Share.................................. $ .69 $ .57 $ .47 $ .41
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 10
<TABLE>
<CAPTION>
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
- ---------------------------------------------------------------------------------------------------------
1985 1984 1983
----------- ----------- -----------
<S> <C> <C> <C>
TOTAL ASSETS*..................................... $ 1,272,242 $ 995,392 $ 881,212
LONG-TERM OBLIGATIONS............................. $ 8,825 $ 13,741 $ 16,944
- ---------------------------------------------------------------------------------------------------------
REVENUES
Premium Income.................................... $ 513,864 $ 412,974 $ 373,443
Investment Income (Less Expense).................. 76,561 65,237 54,741
Realized Gain (Loss) on Investments............... 3,528 1,960 (368)
Other Income...................................... 2,554 1,470 1,185
NET INCOME BEFORE REALIZED GAINS..................
AND LOSSES ON INVESTMENTS
In Total.......................................... $ 52,452 $ 67,350 $ 47,040
Per Common Share.................................. 1.10 1.43 1.01
NET INCOME
In Total.......................................... $ 54,993 $ 68,725 $ 46,775
Per Common Share.................................. 1.16 1.46 1.00
- ---------------------------------------------------------------------------------------------------------
CASH DIVIDENDS DECLARED
Per Common Share.................................. $ .39 $ .35 $ .30
CASH DIVIDENDS PAID
Per Common Share.................................. $ .38 $ .33 $ .29
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Per share data are adjusted for three-for-one stock split on April 24, 1992,
two-for-one stock split in 1985, for stock dividends of 5% in 1984 and 1987,
and 10% in 1982. Total assets and premium income amounts prior to 1989 have
been restated to reflect changes required by FASB Statement No. 97.
<PAGE> 11
"Management Discussion" from pages 31 and 32 (incorporated into
---------------------------------------------------------------
Items 1 and 7).
---------------
MANAGEMENT DISCUSSION
CINNCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
This Management Discussion is intended to supplement the data contained in
the financial statements and related notes of Cincinnati Financial Corporation
and subsidiaries.
RESULTS OF OPERATIONS
The Company's $216 million net income for 1993 reflected a $44.7 million,
26.1 percent, increase over 1992. Net income for 1992 and 1991, respectively,
reflected 17.1 percent and 13.4 percent increases from the preceding years.
1993 net income includes credit for $13.8 million cumulative effect on prior
years of a change in accounting for income taxes. 1993 net income also includes
an $11.2 million charge and $2.6 million credit related to the tax effects of
the increase in tax rates on unrealized appreciation of investment in equity
securities and on accumulated other temporary book-tax differences as of
January 1, 1993. Realized gains on investments (net of income taxes) were $33.5
million for 1993, compared to $23.7 million in 1992 and $5 million in 1991. The
effect on income per share of various matters discussed herein is illustrated
in the following summary:
<TABLE>
<CAPTION>
1993 1992 1991
------ ------ ------
<S> <C> <C> <C>
Net income excluding
the items below................. $ 3.75 $ 3.28 $ 2.91
Realized gains.................... .64 .46 .10
Catastrophe losses................ (.28) (.35) (.07)
Effect of tax rate change:
Unrealized appreciation......... (.22) -0- -0-
Other prior year differences.... .05 -0- -0-
Cumulative effect of accounting
change.......................... .26 -0- -0-
------ ------ ------
Net income per share.............. $ 4.20 $ 3.39 $ 2.94
====== ====== ======
</TABLE>
The Company has continued in the same lines of property casualty business
and has continued not to market in California and not to write flood insurance.
The Company continues to review exposure for huge disasters and to reduce
coverage in certain coastal areas. Developing newer territories has helped the
property and casualty operations increase premium income. Premium income
amounted to $1.092 billion for 1993, an increase of 10 percent over 1992. 1992
and 1991 reflected increases of 9.8 percent and 9 percent, respectively. The
combined loss and expense ratio for the Company's property and casualty
operations was 100.1 percent for 1993, 101.8 percent for 1992 and 99.7 percent
for 1991.
The Company incurred catastrophe losses (net of reinsurance) of $22.6
million, $27.4 million and $5.4 million in 1993, 1992 and 1991, respectively.
Uncertainty always exists as to the adequacy of established reserves. The
Company has consistently established property casualty insurance reserves,
including adjustment of estimates as facts become known, using information from
internal analysis and review by external actuaries. Because of the stability of
the Company's book of business, management believes that uncertainty as to
reserves is less than it otherwise would be.
Total life and annuity and accident and health premium income remained
relatively level over the past three years at $48.7 million, $46.4 million and
$44.1 million for 1993, 1992 and 1991, respectively.
Investment income increased 9.4 percent to $239.4 million in 1993.
Investment income was $218.9 million in 1992 and $193.2 million in 1991,
increases of 13.3 percent and 15.4 percent, respectively. Increases in
investment income have principally been the result of investing the cash flows
from operating activities and the Company's strategy in 1992 and 1991 to shift
to relatively more investments in securities whose income therefrom is taxable
and higher yielding than tax-exempt investments.
The Company's income tax expense, $64.8 million, $37.9 million and $30.9
million for 1993, 1992 and 1991, respectively, has increased to a larger
portion of pretax income primarily because of the effects of a tax rate
increase signed into law in 1993 and the Company's strategy to shift to
relatively more investments in securities whose income is taxable as mentioned
above. As discussed in the Notes to Consolidated Financial Statements and
above, 1993 income tax expense includes an $11.2 million charge and a $2.6
million credit related to the effect of the income tax rate change on
unrealized appreciation on investments in equity securities and on other prior
years' temporary book-tax differences. The Company incurred no additional
alternative minimum tax expense for 1993 or 1992 and recognized $2.8 million in
1991 of additional alternative minimum tax expense in excess of taxes on a
regular basis. The alternative minimum basis effectively taxes certain income
that is exempt from taxation on a regular tax basis.
Statutory risk based capital requirements, effective for life companies in
1993 and for property casualty companies in 1994, are not expected to
significantly affect the Company's operations.
CASH FLOWS AND LIQUIDITY
Net cash provided by operating activities amounted to $363.2 million, $329.1
million and $328.7 million for 1993, 1992 and 1991, respectively. Operating
cash flows have been more than sufficient to meet all operating needs and
provide for financing needs and increased investments. Management expects that
this situation will continue because of no substantial changes in the Company's
mix of business, protection by reinsurance agreements with financially stable
companies and no significant exposure to assumed reinsurance. Assumed
reinsurance comprised no more than 6 percent of gross premiums in each of the
last three years.
The Company used $333.4 million in 1993, $334.5 million in 1992 and $307.2
million in 1991 in investing activities. Net cash flows used in additions to
fixed maturity and equity securities, respectively, amounted to $113 million
and
<PAGE> 12
$212 million in 1993, $162 million and $165 million in 1992 and $244 million
and $48 million in 1991.
Proceeds from $80 million of convertible debentures issued in 1992
(maturing in 2002) were used to reduce short-term debt ($40 million) and to
increase working capital of subsidiaries.
Cash and marketable securities of $4.127 billion make up 89.7 percent of
the Company's $4.602 billion of assets; this compares to 89.3 percent in 1992
and 87.8 percent in 1991. The Company has only minor investments in real estate
and mortgages, which are typically illiquid. Information regarding the
composition of investments, together with maturity data regarding investments
in fixed maturities, is included in the Notes to Consolidated Financial
Statements. As discussed in such notes, the Company's insurance reserve
liabilities are estimated by management based upon Company experience data.
Such reserves are related to various lines of business and will be paid out
over various future periods. The Company has continued to utilize some
short-term debt.
INVESTMENTS
The Company's primary investment strategy is to maintain liquidity to meet
both its immediate and long-range insurance obligations through the purchase
and maintenance of medium-risk, fixed maturity and equity securities, while
earning optimal returns on medium-risk equity securities which offer growing
dividends and capital appreciation.
The Company's investment decisions on an individual insurance company basis
are influenced by insurance statutory requirements, which are designed to
protect policyholders from investment risk. Cash generated from insurance
operations is almost entirely invested in either corporate, governmental,
municipal, public utility and other fixed maturity securities or equity
securities. Such securities are evaluated prior to purchase based on yield and
risk criteria.
The Company's portfolio of fixed maturity securities at December 31, 1993
has an average yield-to-book value of 8.5 percent and an average maturity of
13.8 years. For the insurance companies' purposes, strong emphasis has been
placed on purchasing current income producing securities and maintaining such
securities as long as they continue to meet the Company's yield and risk
criteria. Historically, municipal bonds have been attractive due to their
tax-exempt feature. Concentrations in the essential service (i.e., schools,
sewer, water, etc.) bonds issued by municipalities are prevalent in this area.
Due to the small size of several of these offerings, many of these bonds are
not rated. Because of alternative minimum tax matters, the Company uses a blend
of tax-exempt and taxable fixed maturity securities. Tax-exempt bonds comprise
18 percent of invested assets as of December 31, 1993, compared to 19 percent
and 23 percent in 1992 and 1991, respectively.
At December 31, 1993 and 1992, investments totaling approximately $445
million and $320 million, respectively ($468 million and $344 million in market
value), of the Company's $4.117 billion and $3.647 billion investment portfolio
relate to securities that are rated noninvestment grade or that are not rated
by Moody's Investors Service or Standard & Poor's. Such investments are not
expected to have a material effect on the Company's financial condition or
results of operations.
Investments in common stocks have been made with emphasis on securities
with an annual dividend yield of at least 4 percent to 5 percent and annual
dividend increases. The Company's portfolio of equity investments at December
31, 1993 has an average dividend yield to cost of 8.1 percent. Strategy in
equity investments continues to include identifying approximately 10 to 12
companies in which the Company can accumulate 10 percent to 20 percent of their
common stock.
As a long-term investor, the Company has followed a buy-and-hold strategy
for many years. As a result of this policy for over 35 years, a significant
amount of unrealized appreciation on equity investments has been generated.
Unrealized appreciation on equity investments was $1.135 billion as of December
31, 1993 and constituted 28 percent of the total investment portfolio, 49
percent of the equities investment portfolio and, after deferred income taxes,
38 percent of total shareholders' equity. Such unrealized appreciation amounted
to $1.05 billion and $835.9 million at December 31, 1992 and 1991,
respectively.
SHAREHOLDERS' EQUITY AND LONG-AND
SHORT-TERM DEBT
At December 31, 1993, shareholders' equity was $1.947 billion.
Shareholders' equity was 42 percent of assets in 1993 and 1992 and 41 percent
of assets in 1991. During 1993, 1992 and 1991, respectively, shareholders'
equity increased $234 million, $272 million and $435 million, of which $61
million, $144 million and $327 million were related to the increase in
unrealized appreciation on equity investments discussed above, net of income
tax effects. Long-term and short-term debt each amounted to less than 2 percent
of total assets at December 31, 1993. At December 31, 1993 and 1992, long-term
debt consisted of $80 million of convertible debentures, up from $182,000 in
1991. Short-term debt amounted to $78 million, up from $67 million in 1992 and
down from $106 million in 1991.
IMPENDING ACCOUNTING CHANGES
As discussed more fully in the Notes to Consolidated Financial Statements,
Statement of Financial Accounting Standards No. 115 has been issued.
Implementation, required in 1994, will change the methods of accounting for
investments.
<PAGE> 13
Independent Auditors' Report and Financial Statements from
----------------------------------------------------------
pages 19 thru 29 (incorporated into Item 8).
--------------------------------------------
INDEPENDENT AUDITORS' REPORT
Deloitte &
Touche
[Logo]
To the Shareholders and Board of Directors of Cincinnati
Financial Corporation:
We have audited the consolidated balance sheets of Cincinnati Financial
Corporation and subsidiaries as of December 31, 1993 and 1992 and the related
consolidated statements of income, shareholders' equity and cash flows for each
of the three years in the period ended December 31, 1993. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such consolidated financial statements present fairly, in
all material respects, the financial position of Cincinnati Financial
Corporation and subsidiaries at December 31, 1993 and 1992 and the results of
their operations and their cash flows for each of the three years in the period
ended December 31, 1993 in conformity with generally accepted accounting
principles.
As discussed in the notes to the consolidated financial statements, in 1993
the Company changed its method of accounting for income taxes to conform with
Statement of Financial Accounting Standards No. 109.
/s/ Deloitte & Touche
Cincinnati, Ohio
February 14, 1994
<PAGE> 14
CONSOLIDATED BALANCE SHEETS
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
December 31,
-------------------------------------------
1993 1992
-------------- --------------
<S> <C> <C>
ASSETS
Investments
Fixed maturities, at amortized cost (fair value:
1993--$1,881,717,000; 1992--$1,753,777,000) . . . . . . . . $1,759,655,000 $1,635,947,000
Equity securities, at fair value (cost: 1993--
$1,184,172,000; 1992--$922,425,000) . . . . . . . . . . . . 2,318,803,000 1,972,293,000
Other invested assets . . . . . . . . . . . . . . . . . . . . 38,364,000 38,665,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,114,000 49,983,000
Investment income receivable . . . . . . . . . . . . . . . . . . 50,120,000 46,999,000
Finance receivables (less unearned finance charges:
1993--$2,120,000; 1992--$2,185,000. Amounts
maturing within one year: 1993--$4,633,000;
1992--$4,458,000) . . . . . . . . . . . . . . . . . . . . . . 13,011,000 12,063,000
Premiums receivable . . . . . . . . . . . . . . . . . . . . . . . 134,361,000 124,162,000
Reinsurance receivable . . . . . . . . . . . . . . . . . . . . . 59,061,000 51,550,000
Prepaid reinsurance premiums . . . . . . . . . . . . . . . . . . 23,966,000 18,700,000
Deferred acquisition costs pertaining to unearned
premiums and to life policies in force . . . . . . . . . . . . 104,091,000 97,334,000
Land, buildings and equipment for Company use (at
cost, less accumulated depreciation:
1993--$57,745,000; 1992--$50,306,000) . . . . . . . . . . . . 31,336,000 33,995,000
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . 21,406,000 17,022,000
-------------- --------------
Total assets . . . . . . . . . . . . . . . . . . . . . . . . $4,602,288,000 $4,098,713,000
============== ==============
LIABILITIES
Insurance reserves
Losses and loss expenses . . . . . . . . . . . . . . . . . . $1,402,507,000 $1,235,512,000
Life policy reserves . . . . . . . . . . . . . . . . . . . . . 345,977,000 316,769,000
Unearned premiums . . . . . . . . . . . . . . . . . . . . . . 362,012,000 325,075,000
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . 95,484,000 68,914,000
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . 290,904,000 291,715,000
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . 78,066,000 66,952,000
5 1/2% convertible senior debentures due 2002 . . . . . . . . . . 80,000,000 80,000,000
-------------- --------------
Total liabilities . . . . . . . . . . . . . . . . . . . . . 2,654,950,000 2,384,937,000
-------------- --------------
SHAREHOLDERS' EQUITY
Common stock, par value--$2 per share; authorized
80,000,000 shares; issued, 1993--50,313,161;
1992--50,073,147 . . . . . . . . . . . . . . . . . . . . . . . 100,626,000 100,146,000
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . 102,235,000 92,529,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . 996,359,000 836,533,000
Unrealized gains on investments . . . . . . . . . . . . . . . . . 748,514,000 687,059,000
-------------- --------------
1,947,734,000 1,716,267,000
Less treasury shares at cost (1993--6,860 shares;
1992--107,435 shares) . . . . . . . . . . . . . . . . . . . . (396,000) (2,491,000)
-------------- --------------
Total shareholders' equity . . . . . . . . . . . . . . . . . 1,947,338,000 1,713,776,000
-------------- --------------
Total liabilities and shareholders' equity . . . . . . . . . $4,602,288,000 $4,098,713,000
============== ==============
</TABLE>
Accompanying notes are an integral part of this statement.
<PAGE> 15
CONSOLIDATED STATEMENTS OF INCOME
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
Years Ended December 31,
-----------------------------------------------------------------
1993 1992 1991
-------------- -------------- --------------
<S> <C> <C> <C>
REVENUE
Premium income
Property and casualty . . . . . . . . . . . . . $1,092,135,000 $ 992,335,000 $ 903,465,000
Life . . . . . . . . . . . . . . . . . . . . . . 41,169,000 38,014,000 36,564,000
Accident and health . . . . . . . . . . . . . . 7,487,000 8,423,000 7,547,000
-------------- -------------- --------------
Net premiums earned . . . . . . . . . . . . . . 1,140,791,000 1,038,772,000 947,576,000
Investment income (less expenses of . . . . . . .
$4,017,000, $3,760,000 and
$3,223,000, respectively) . . . . . . . . . . . 239,436,000 218,942,000 193,220,000
Realized gain on investments . . . . . . . . . . . 51,529,000 35,885,000 7,641,000
Other income . . . . . . . . . . . . . . . . . . . 10,396,000 10,552,000 12,698,000
-------------- -------------- --------------
Total revenues . . . . . . . . . . . . . . . . . 1,442,152,000 1,304,151,000 1,161,135,000
-------------- -------------- --------------
BENEFITS AND EXPENSES
Insurance losses and policyholder
benefits . . . . . . . . . . . . . . . . . . . . 832,478,000 766,110,000 679,948,000
Commissions . . . . . . . . . . . . . . . . . . . 220,830,000 209,204,000 190,909,000
Other operating expenses . . . . . . . . . . . . . 83,357,000 79,545,000 69,388,000
Taxes, licenses and fees . . . . . . . . . . . . . 35,088,000 30,521,000 33,202,000
Increase in deferred acquisition costs
pertaining to unearned premiums and
to life policies in force . . . . . . . . . . . (6,757,000) (3,753,000) (4,705,000)
Interest expense . . . . . . . . . . . . . . . . . 7,389,000 6,690,000 6,642,000
Other expenses . . . . . . . . . . . . . . . . . . 2,772,000 6,640,000 8,620,000
-------------- -------------- --------------
Total benefits and expenses . . . . . . . . . . 1,175,157,000 1,094,957,000 984,004,000
-------------- -------------- --------------
INCOME BEFORE INCOME TAXES
AND CUMULATIVE EFFECT OF
AN ACCOUNTING CHANGE . . . . . . . . . . . . . . . 266,995,000 209,194,000 177,131,000
-------------- -------------- --------------
PROVISION FOR INCOME TAXES
Current . . . . . . . . . . . . . . . . . . . . . 71,119,000 54,964,000 47,388,000
Deferred . . . . . . . . . . . . . . . . . . . . . (6,303,000) (17,095,000) (16,537,000)
-------------- -------------- --------------
64,816,000 37,869,000 30,851,000
-------------- -------------- --------------
INCOME BEFORE CUMULATIVE
EFFECT OF AN ACCOUNTING
CHANGE . . . . . . . . . . . . . . . . . . . . . . 202,179,000 171,325,000 146,280,000
CUMULATIVE EFFECT OF A CHANGE
IN ACCOUNTING FOR INCOME TAXES . . . . . . . . . . 13,845,000 -0- -0-
-------------- -------------- --------------
NET INCOME . . . . . . . . . . . . . . . . . . . . . $ 216,024,000 $ 171,325,000 $ 146,280,000
============== ============== ==============
PER COMMON SHARE
Income before cumulative effect of an
accounting change . . . . . . . . . . . . . . . . $ 3.94 $ 3.39 $ 2.94
Cumulative effect of a change in accounting
for income taxes . . . . . . . . . . . . . . . . .26 -0- -0-
-------------- -------------- --------------
Net income . . . . . . . . . . . . . . . . . . . . $ 4.20 $ 3.39 $ 2.94
============== ============== ==============
Cash dividends (declared) . . . . . . . . . . . . $ 1.12 $ 1.03 $ .91
============== ============== ==============
</TABLE>
Accompanying notes are an integral part of this statement.
<PAGE> 16
CONSOLIDATED STATEMENTS OF CASH FLOWS
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
Years Ended December 31,
-----------------------------------------------------------------
1993 1992 1991
-------------- -------------- --------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . $ 216,024,000 $ 171,325,000 $ 146,280,000
Adjustments to reconcile net income to net
cash flows provided by operating activities:
Depreciation and amortization . . . . . . . . . 10,466,000 10,051,000 6,047,000
Increase in unearned premiums and
prepaid reinsurance premiums . . . . . . . . . 31,671,000 21,625,000 26,377,000
Increase in life policy reserves . . . . . . . . 29,208,000 42,005,000 37,448,000
Increase in loss and loss expense reserves and
reinsurance receivable . . . . . . . . . . . . 159,484,000 156,461,000 153,518,000
Increase in premiums receivable . . . . . . . . (10,199,000) (7,979,000) (9,401,000)
Increase in deferred acquisition costs . . . . . (6,757,000) (3,753,000) (4,705,000)
Increase in other liabilities . . . . . . . . . 20,374,000 1,817,000 6,734,000
Increase in investment income receivable . . . . (3,121,000) (4,135,000) (4,527,000)
Increase in policy loans and accounts receivable (8,045,000) (3,570,000) (4,557,000)
Decrease in deferred income taxes . . . . . . . (20,148,000) (17,095,000) (16,537,000)
Increase (decrease) in current income taxes . . (4,950,000) (3,356,000) 600,000
Realized gain on investments . . . . . . . . . . (51,529,000) (35,885,000) (7,641,000)
Other . . . . . . . . . . . . . . . . . . . . . 712,000 1,544,000 (937,000)
-------------- -------------- --------------
Net cash provided by operating activities . . 363,190,000 329,055,000 328,699,000
-------------- -------------- --------------
Cash flows from investing activities:
Sale of fixed maturities investments . . . . . . . 118,064,000 56,552,000 94,864,000
Maturity of fixed maturities investments . . . . . 287,096,000 264,618,000 95,915,000
Sale of equity securities investments . . . . . . 200,775,000 165,654,000 172,234,000
Collection of mortgage loans . . . . . . . . . . . 2,241,000 4,214,000 771,000
Collection of finance receivables . . . . . . . . 6,523,000 6,269,000 6,448,000
Purchase of fixed maturities investments . . . . . (518,339,000) (482,695,000) (434,751,000)
Purchase of equity securities investments . . . . . (412,630,000) (330,644,000) (220,275,000)
Investment in mortgage loans . . . . . . . . . . . (1,234,000) (1,552,000) (1,604,000)
Investment in land, buildings and equipment . . . (7,648,000) (12,125,000) (14,923,000)
Investment in finance receivables . . . . . . . . (7,471,000) (6,469,000) (5,726,000)
Investment in real estate and other . . . . . . . (728,000) 1,698,000 (178,000)
-------------- -------------- --------------
Net cash used in investing activities . . . . (333,351,000) (334,480,000) (307,225,000)
-------------- -------------- --------------
Cash flows from financing activities:
5 1/2% convertible debenture issue . . . . . . . . -0- 80,000,000 -0-
Proceeds from stock options exercised . . . . . . 7,102,000 6,736,000 6,022,000
Issuance (purchase) of treasury shares . . . . . . 5,179,000 638,000 (129,000)
Increase (decrease) in notes payable . . . . . . . 11,114,000 (39,419,000) 33,917,000
Payment of cash dividends to shareholders . . . . (55,103,000) (49,697,000) (43,624,000)
-------------- -------------- --------------
Net cash used in financing activities . . . . (31,708,000) (1,742,000) (3,814,000)
-------------- -------------- --------------
Net increase (decrease) in cash . . . . . . . . . . . (1,869,000) (7,167,000) 17,660,000
Cash at beginning of year . . . . . . . . . . . . . . 49,983,000 57,150,000 39,490,000
-------------- -------------- --------------
Cash at end of year . . . . . . . . . . . . . . . . . $ 48,114,000 $ 49,983,000 $ 57,150,000
============== ============== ==============
Supplemental disclosures of cash flow information
Interest paid . . . . . . . . . . . . . . . . . . $ 7,543,000 $ 6,191,000 $ 6,555,000
============== ============== ==============
Income taxes paid . . . . . . . . . . . . . . . . $ 67,000,000 $ 58,250,000 $ 46,800,000
============== ============== ==============
</TABLE>
Accompanying notes are an integral part of this statement.
<PAGE> 17
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
UNREALIZED
COMMON TREASURY PAID-IN RETAINED GAINS ON
STOCK STOCK CAPITAL EARNINGS INVESTMENTS
------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1990 . . . $ 98,748,000 $ (2,732,000) $ 79,519,000 $615,224,000 $216,109,000
Net income . . . . . . . . . . . 146,280,000
Change in unrealized
gains on investments . . . . . 495,738,000
Income taxes on unrealized
gains . . . . . . . . . . . . (168,551,000)
Dividends declared . . . . . . . (44,847,000)
Purchase of treasury shares . . . (107,000) (22,000)
Stock options exercised . . . . . 652,000 5,370,000
Conversion of debentures . . . . 6,000 14,000
------------ ------------ ------------ ------------ ------------
Balance, December 31, 1991 . . . 99,406,000 (2,839,000) 84,881,000 716,657,000 543,296,000
Net income . . . . . . . . . . . 171,325,000
Change in unrealized
gains on investments . . . . . 217,823,000
Income taxes on unrealized
gains . . . . . . . . . . . . (74,060,000)
Dividends declared . . . . . . . (51,448,000)
Issuance of treasury shares . . . 348,000 290,000
Stock options exercised . . . . . 610,000 6,126,000
Purchase of insurance agency . . 66,000 1,115,000
Conversion of debentures . . . . 64,000 117,000 (1,000)
------------ ------------ ------------ ------------ ------------
Balance, December 31, 1992 . . . 100,146,000 (2,491,000) 92,529,000 836,533,000 687,059,000
Net income . . . . . . . . . . . 216,024,000
Change in unrealized
gains on investments . . . . . 93,255,000
Income taxes on unrealized
gains . . . . . . . . . . . . (31,800,000)
Dividends declared . . . . . . . (56,198,000)
Issuance of treasury shares . . . 2,095,000 3,084,000
Stock options exercised . . . . . 480,000 6,622,000
------------ ------------ ------------ ------------ ------------
Balance, December 31, 1993 . . . $100,626,000 $ (396,000) $102,235,000 $996,359,000 $748,514,000
============ ============ ============ ============ ============
</TABLE>
Accompanying notes are an integral part of this statement.
<PAGE> 18
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION--The consolidated financial statements include the
accounts of Cincinnati Financial Corporation (the "Company") and all
subsidiaries, each of which is wholly owned, and are presented in conformity
with generally accepted accounting principles. Generally accepted accounting
principles differ in certain respects from statutory insurance accounting
practices prescribed or permitted for insurance companies by regulatory
authorities. All significant inter-company balances and transactions have been
eliminated in consolidation.
PROPERTY AND CASUALTY INSURANCE--Expenses incurred in the issuance of
policies are deferred and amortized over the terms of the policies. Anticipated
investment income is not considered in determining if a premium deficiency
related to insurance contracts exists. Policy premiums are included in income
on a pro rata basis over the terms of the policies. Loss and loss expense
reserves are based on claims reported prior to the end of the year and
estimates of unreported claims, net of salvage and subrogation.
LIFE INSURANCE--Policy acquisition costs are deferred and amortized over the
premium paying period of the policies. Life policy reserves are based on
anticipated rates of mortality derived primarily from industry experience data,
anticipated withdrawal rates based principally on Company experience and
estimated future interest earnings using initial interest rates ranging from 3%
to101/2%. Interest rates on approximately $229,000,000 and $205,000,000 of such
reserves at December 31, 1993 and 1992, respectively, are periodically adjusted
based upon market conditions.
Payments received for investment, limited pay and universal life-type
contracts are recognized as income only to the extent of the current cost of
insurance and policy administration, with the remainder recognized as
liabilities and included in life policies reserves.
ACCIDENT AND HEALTH INSURANCE--Expenses incurred in the issuance of policies
are deferred and amortized over a five-year period. Policy premium income,
unearned premiums and reserves for unpaid losses are accounted for in
substantially the same manner as property and casualty insurance discussed
above.
REINSURANCE--In the normal course of business, the Company seeks to reduce
losses that may arise from catastrophes or other events that cause unfavorable
underwriting results by reinsuring certain levels of risk in various areas of
exposure with other insurance companies, reinsurers and involuntary state
pools. Reinsurance contracts do not relieve the Company from any obligation to
policyholders. Although the Company historically has not experienced
uncollectible reinsurance, failure of reinsurers to honor their obligations
could result in losses to the Company. Amounts recoverable from reinsurers are
estimated in a manner consistent with the claim liability associated with the
reinsured policy.
The Company also assumes some reinsurance from other insurance companies,
reinsurers and involuntary state pools. Such assumed reinsurance activity is
recorded principally on the basis of reports received from the ceding
companies.
The Company adopted Statement of Financial Accounting Standards (SFAS) No.
113, "Accounting and Reporting for Reinsurance of Short-Duration and
Long-Duration Contracts," effective January 1, 1993. This change had no effect
on the determination of net income for 1993 or prior years. As a result of the
change, the Company no longer nets reinsurance amounts in the balance sheet.
Reclassifications have been made in the accompanying December 31, 1992 balance
sheet (assets and liabilities have each been increased by approximately $70
million).
INVESTMENTS--Fixed maturities (bonds and notes) are principally stated at
amortized cost and equity securities (common and preferred stocks) are stated
at fair values. Unrealized gains and losses on investments carried at fair
value, net of income taxes associated therewith, are included in shareholders'
equity. Realized gains and losses on sales of investments are recognized in net
income on a specific identification basis.
In accordance with SFAS No. 115, "Accounting for Certain Investments in Debt
and Equity Securities," which must be adopted by 1994, the Company will have to
classify investments into three categories--trading, available for sale or held
to maturity. Under the trading and available-for-sale categories, investments
are carried at market value with unrealized gains (losses) being recognized
directly in income and shareholders' equity (net of tax effects), respectively.
Investments in the held-to-maturity category are carried at amortized cost.
Company management is presently considering the appropriate classifications of
investments in order to adopt SFAS No. 115 in the first quarter of 1994.
Company management presently expects that all equity securities, and possibly
all fixed maturity investments, will be classified as available for sale.
Accordingly, upon adoption of SFAS No. 115, the Company will recognize an
initial increase in shareholders' equity as of January 1, 1994 equal to the
amount of unrealized gains (net of tax effects) related to the fixed maturity
investments that are then classified as available for sale. If all fixed
maturity investments were to be classified as available for sale, January 1,
1994 shareholders' equity would be increased by approximately $79 million.
INCOME TAXES--As further discussed below, effective January 1, 1993, the
Company adopted SFAS No. 109, "Accounting for Income Taxes." SFAS No. 109
requires deferred tax liabilities and assets to be computed using the tax rates
in effect for the time when temporary differences in book and taxable income
are estimated to reverse and limits the amount of deferred tax assets that can
be recognized. Deferred income taxes are recognized for numerous temporary
differences between the Company's taxable income and book-basis income and
other changes in shareholders' equity. Such temporary differences relate
primarily to unrealized gains on equity investments and differences in the
recognition of deferred policy acquisition costs and insurance reserves.
Deferred taxes associated with unrealized appreciation (except the amounts
related to the effect of income tax rate changes) are charged to shareholders'
equity and deferred taxes associated with other differences are charged to
income.
EARNINGS PER SHARE--Net income per common share is based on the average
number of shares and equivalent shares outstanding during each of the
respective years. Stock options and convertible debentures are treated as
common stock equivalents.
FAIR VALUE DISCLOSURES--Fair values for investments in fixed maturity
securities (including redeemable preferred stock) are based on quoted market
prices, where available. For such securities not actively traded, fair values
are estimated by discounting expected future cash flows using a current market
rate applicable to the yield, credit quality and maturity of the investments.
Fair values for equity securities are based on quoted market prices.
The fair values for liabilities under investment-type insurance contracts
are estimated using discounted cash flow calculations, based on interest rates
currently being offered for similar contracts with maturities consistent with
those remaining for the contracts being valued. Fair values for short-term
notes payable are estimated using interest rates currently available to the
Company. Fair values for the long-term convertible debentures are based on the
quoted market prices for such debentures.
INVESTMENTS
Net unrealized gains included in shareholders' equity increased by
$61,455,000 in 1993, $143,763,000 in 1992 and $327,187,000 in 1991.
At December 31, 1993, gross unrealized gains pertaining to equity securities
were $1,136,343,000 and gross unrealized losses were $1,712,000.
Analysis of gain or loss on security investments, including realized and
unrealized gain or loss (000's omitted):
<TABLE>
<CAPTION>
Years Ended December 31,
------------------------------------------------------------------------------
1993 1992 1991
----------------------- ------------------------ ------------------------
Fixed Equity Fixed Equity Fixed Equity
Maturities Securities Maturities Securities Maturities Securities
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Realized gain (loss) . . . . . . . . . . . $ 25,193 $ 26,336 $ 6,781 $ 29,104 $ (370) $ 8,011
Less applicable income taxes (credits) . . 8,817 9,218 2,305 9,895 (125) 2,724
-------- -------- --------- --------- -------- ---------
16,376 17,118 4,476 19,209 (245) 5,287
-------- -------- --------- --------- -------- ---------
Increase in unrealized gain . . . . . . . 4,232 84,763 55,655 214,001 65,641 500,595
Less applicable income taxes . . . . . . . 1,481 29,667 18,923 72,760 22,318 170,202
-------- -------- --------- --------- -------- ---------
2,751 55,096 36,732 141,241 43,323 330,393
-------- -------- --------- --------- -------- ---------
Net investment gain (loss) . . . . . . . . $ 19,127 $ 72,214 $ 41,208 $ 160,450 $ 43,078 $ 335,680
======== ======== ========= ========= ======== =========
</TABLE>
Gross realized gains and gross realized losses on fixed maturity securities
were $32,361,000 and $7,168,000, respectively, in 1993; $14,005,000 and
$7,224,000, respectively, in 1992; and $6,715,000 and $7,085,000, respectively,
in 1991.
Investment income summarized by investment category (000's omitted):
<TABLE>
<CAPTION>
Years Ended December 31,
-------------------------------------------------
1993 1992 1991
----------- ----------- -----------
<S> <C> <C> <C>
Interest on fixed maturities . . . . . . . . . . . . . . . . . . . $ 150,732 $ 142,646 $ 128,454
Dividends on equity securities . . . . . . . . . . . . . . . . . . 87,415 75,619 65,415
Other investment income . . . . . . . . . . . . . . . . . . . . . . 5,306 4,437 2,574
----------- ----------- -----------
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,453 222,702 196,443
Less investment expenses . . . . . . . . . . . . . . . . . . . . . 4,017 3,760 3,223
----------- ----------- -----------
Net investment income . . . . . . . . . . . . . . . . . . . . . . . $ 239,436 $ 218,942 $ 193,220
=========== =========== ===========
</TABLE>
Analysis of amortized cost, fair value, gross unrealized gains and gross
unrealized losses for investments in fixed maturity securities as of December
31, 1993 and 1992 (000's omitted):
<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED FAIR UNREALIZED UNREALIZED
COST VALUE GAINS LOSSES
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
1993
States, municipalities and political subdivisions . . . $ 759,517 $ 807,847 $ 53,330 $ 5,000
Convertibles and bonds with warrants attached . . . . . 164,257 184,685 21,169 741
Public utilities . . . . . . . . . . . . . . . . . . . 66,251 69,110 3,261 402
United States government and government
agencies and authorities . . . . . . . . . . . . . . 4,714 5,333 619 0
All other corporate bonds . . . . . . . . . . . . . . . 764,916 814,742 51,098 1,272
----------- ----------- ----------- ------------
Total . . . . . . . . . . . . . . . . . . . . . . . . $ 1,759,655 $ 1,881,717 $ 129,477 $ 7,415
=========== =========== =========== ============
1992
States, municipalities and political subdivisions . . . $ 692,104 $ 727,169 $ 38,700 $ 3,635
Convertibles and bonds with warrants attached . . . . . 164,060 187,802 24,884 1,142
Public utilities . . . . . . . . . . . . . . . . . . . 104,098 113,456 9,375 17
United States government and government
agencies and authorities . . . . . . . . . . . . . . 4,929 5,608 679
All other corporate bonds . . . . . . . . . . . . . . . 670,756 719,742 50,084 1,098
----------- ----------- ----------- ------------
Total . . . . . . . . . . . . . . . . . . . . . . . . $ 1,635,947 $ 1,753,777 $ 123,722 $ 5,892
=========== =========== =========== ============
</TABLE>
Maturity dates for investments in fixed maturity securities as of December 31,
1993 (000's omitted):
<TABLE>
<CAPTION>
AMORTIZED FAIR
COST VALUE
------------ -----------
<S> <C> <C>
Maturity dates occurring:
One year or less . . . . . . . . . . . . . . . . . . . $ 63,448 $ 64,164
After one year through five years . . . . . . . . . . . 53,053 55,489
After five years through ten years . . . . . . . . . . 474,166 503,804
After ten years . . . . . . . . . . . . . . . . . . . . 1,168,988 1,258,260
------------ -----------
Total . . . . . . . . . . . . . . . . . . . . . . . . $ 1,759,655 $ 1,881,717
============ ===========
</TABLE>
Investments in companies that exceed 10% of the Company's shareholders' equity
include the following as of December 31 (000's omitted):
<TABLE>
<CAPTION>
1993 1992
---------------------------- ----------------------------
FAIR Fair
COST VALUE Cost Value
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Fifth Third Bancorp common stock . . . . . . . . . . . . $ 123,674 $ 637,524 $ 111,000 $ 651,900
Alltel Corporation common stock . . . . . . . . . . . . . $ 90,407 $ 369,492 $ 81,491 $ 291,193
</TABLE>
<PAGE> 19
NOTES PAYABLE
The Company and subsidiaries had no compensating debt balance for either
1993 or 1992. Notes payable in the accompanying balance sheet are short term
and interest rates charged on such borrowings ranged from 3.10% to 6.00% during
1993 which resulted in an average interest rate of 4.07%. At December 31,
1993, the fair value of the notes payable approximated the carrying value and
the weighted average interest rate approximated 4.03%.
CONVERTIBLE SENIOR DEBENTURES
The convertible senior debentures ($80,000,000 issued in 1992) are
convertible beginning in 1997 into shares of common stock at a conversion price
of $49.20 (20.33 shares for each $1,000 principal). At December 31, 1993 and
1992, the fair value of the debentures approximated $101,600,000 and
$109,000,000, respectively.
PENSION PLAN
The Company and subsidiaries have a defined benefit pension plan covering
substantially all employees. Benefits are based on years of credited service
and compensation level. Contributions to the plan are based on the frozen entry
age actuarial cost method. Pension expense is composed of several components
that are determined using the projected unit credit actuarial cost method and
that are based on certain actuarial assumptions. The following table sets forth
the plan's funded status and the amounts recognized in the Company's balance
sheets as of December 31, 1993 and 1992 (000's omitted):
<TABLE>
<CAPTION>
1993 1992
--------- ---------
<S> <C> <C>
Actuarial present value of
accumulated benefit obligation
(vested benefits: 1993--
$21,410; 1992--$18,062) . . . . . . . . . $ 22,146 $ 18,705
========= =========
Plan assets at fair market value . . . . . . $ 61,957 $ 60,364
Actuarial present value of projected
benefit obligation . . . . . . . . . . . . 38,807 32,378
--------- ---------
Plan assets in excess of projected
benefit obligation . . . . . . . . . . . . 23,150 27,986
Unrecognized net transition asset at
January 1, 1987 ($7,774 amortized
over 21 years) . . . . . . . . . . . . . . (5,183) (5,553)
Unrecognized prior service costs . . . . . . (420) (452)
Unrecognized net gain . . . . . . . . . . . . (18,213) (22,768)
--------- ---------
Prepaid (accrued) pension cost . . . . . . . $ (666) $ (787)
========= =========
</TABLE>
Net pension expense for 1993, 1992 and 1991 includes the following
components (000's omitted):
<TABLE>
<CAPTION>
1993 1992 1991
-------- -------- ---------
<S> <C> <C> <C>
Service cost for current year . . . . . $ 2,297 $ 2,049 $ 1,743
Interest cost . . . . . . . . . . . . . 2,429 2,127 1,827
Actual return on plan assets . . . . . (2,593) (8,250) (13,547)
Net amortization and deferral . . . . . (2,254) 4,229 10,031
--------- -------- ---------
Net pension expense . . . . . . . . . . $ (121) $ 155 $ 54
========= ======== =========
</TABLE>
The weighted average discount rate used in determining the actuarial present
value of the projected benefit obligation as of December 31 was 7% in 1993,
1992 and 1991. The rates of increase in future compensation levels were 5% to
7% for each year. The expected long-term rate of return on retirement plan
assets, consisting principally of equity securities, was 8% as of December 31,
1993, 1992 and 1991.
DEFERRED ACQUISITION COSTS
Acquisition costs capitalized during 1993, 1992 and 1991 amounted to
$73,400,000, $68,629,000 and $64,829,000, respectively. Amortization of
deferred acquisition costs was $66,643,000, $64,876,000 and $60,124,000 for
1993, 1992 and 1991, respectively.
SHAREHOLDERS' EQUITY AND RESTRICTION
During 1992, the Company's authorized capital was increased to 80,000,000
shares of common stock and a three-for-one stock split was declared. Common
stock, paid-in capital and stock option amounts included for prior years have
been adjusted to reflect the stock split.
The insurance subsidiaries paid cash dividends to the Company of
approximately $119,000,000, $82,651,000 and $34,801,000 in 1993, 1992 and 1991,
respectively. Dividends paid to the Company by insurance subsidiaries are
restricted by regulatory requirements of the insurance subsidiaries'
domiciliary state. Generally, the maximum dividend that may be paid without
prior regulatory approval is limited to the greater of 10% of statutory surplus
or 100% of statutory net income for the prior calendar year, up to the amount
of statutory unassigned surplus as of the end of the prior calendar year.
Dividends exceeding these limitations can only be paid with approval of the
insurance department of the subsidiaries' domiciliary state. During 1994, the
total dividends that can be paid to the Company without regulatory approval are
approximately $117,025,000.
2,499,724 shares of common stock were reserved as of December 31, 1993 for
the issuance of debenture conversions and stock options.
STATUTORY ACCOUNTING INFORMATION
Net income and shareholders' equity, as determined in accordance with
statutory accounting practices for the Company's insurance subsidiaries, are as
follows (000's omitted):
<TABLE>
<CAPTION>
Years Ended December 31,
-------------------------------------
1993 1992 1991
--------- --------- ---------
<S> <C> <C> <C>
Net income:
Property/casualty insurance
subsidiaries . . . . . . . . . $ 131,151 $ 98,589 $ 98,956
Life/health insurance
subsidiary . . . . . . . . . . $ 14,577 $ 20,831 $ 16,405
</TABLE>
<TABLE>
<CAPTION>
December 31,
----------------------
1993 1992
---------- ---------
<S> <C> <C>
Shareholders' equity:
Property/casualty insurance subsidiaries . . . $ 808,704 $ 736,728
Life/health insurance subsidiary . . . . . . . $ 201,624 $ 196,759
</TABLE>
STOCK OPTIONS
The Company has primarily qualified stock option plans under which options
are granted to employees of the Company at prices which are not less than
market price at the date of grant and which are exercisable over five- or
ten-year periods. A summary of option information for the years ended December
31, 1993, 1992 and 1991 and the related range of prices per share for the year
ended December 31, 1993 follows:
<TABLE>
<CAPTION>
1993 1992 1991
--------- --------- ---------
<S> <C> <C> <C>
Shares under option
($13.08 to $62.25) . . . . . . . 873,708 1,003,998 879,543
Options exercisable
($13.08 to $59.25) . . . . . . . 428,657 417,858 571,587
Options exercised
($13.08 to $48.00) . . . . . . . 240,014 304,983 325,968
</TABLE>
At December 31, 1993, the average purchase price of the shares under option
was $37.17 and the aggregate market value of the shares under option was
approximately $46,743,000; such options expire on dates ranging from February
11, 1994 to November 19, 2003.
FEDERAL INCOME TAXES
Effective January 1, 1993, the Company adopted SFAS No. 109, "Accounting for
Income Taxes," and recognized in 1993 income the $13,845,000 cumulative effect
on prior years of the change in method of accounting for income taxes. Income
tax rates were increased during 1993; and as a result of the use of SFAS No.
109, the Company also charged to 1993 income $11,245,000 of taxes related to
the effect of the change in rates on unrealized appreciation on equity
investments at the date the rate increases were signed into law. Further,
under SFAS No. 109, the effect ($2,604,000) of the change on accumulated
temporary differences as of January 1, 1993 was credited to income. Under the
previous methods of accounting for income taxes, the net $8,641,000 charge to
income would not have been recognized.
Significant components of the Company's net deferred tax liability as of
December 31 and January 1, 1993 (after the $13.8 million decrease in the
liability related to the accounting change referred to above and a $12.5
million reclassification decrease in which taxes currently payable were
increased) are as follows (000's omitted):
<TABLE>
<CAPTION>
December 31 January 1
------------ ------------
<S> <C> <C>
Deferred tax liabilities:
Unrealized gain on
investments . . . . . . $ 396,989 $ 353,939
Deferred acquisition costs 33,246 30,702
Other . . . . . . . . . . 8,623 3,190
------------ -------------
Total . . . . . . . . . . 438,858 387,831
------------ -------------
Deferred tax assets:
Losses and loss expense
reserves . . . . . . . 107,156 83,212
Unearned premiums . . . . 23,379 20,611
Life policy reserves . . . 14,862 12,772
Other . . . . . . . . . . 2,557 5,828
------------ -------------
Total . . . . . . . . . . 147,954 122,423
------------ -------------
Net deferred tax liability . $ 290,904 $ 265,408
============ =============
</TABLE>
The provision for federal income taxes is based upon a consolidated income
tax return for the Company and subsidiaries.
The differences between the statutory federal rates and the Company's
effective federal income tax rates are as follows:
<TABLE>
<CAPTION>
1993 1992 1991
Percent Percent Percent
<S> <C> <C> <C>
Tax at statutory rate . . . . . . . 35.00 34.00 34.00
Increase (decrease) resulting
from:
Tax-exempt municipal bonds . . . (7.61) (9.51) (11.72)
Dividend exclusion . . . . . . . (6.73) (7.99) (8.37)
Effect of rate change
on unrealized
appreciation . . . . . . . . . 4.21
Alternative minimum tax . . . . . 1.57
Other . . . . . . . . . . . . . (.59) 1.60 1.94
----- ----- -----
Effective rate . . . . . . . . . . 24.28 18.10 17.42
===== ===== =====
</TABLE>
No provision has been made (at December 31, 1993, 1992 and 1991) for federal
income taxes on approximately $14,000,000 of the life insurance subsidiary's
retained earnings, since such taxes will become payable only to the extent that
such retained earnings are distributed as dividends or exceed limitations
prescribed by tax laws. The Company does not contemplate any such dividend.
LIFE POLICY RESERVES
Life policy reserves have been calculated using the account value basis for
universal life and annuity policies and primarily the Basic Table (select)
mortality basis for ordinary/traditional, industrial and other policies.
Following is a summary of such reserves (000's omitted):
<TABLE>
<CAPTION>
1993 1992
----------- ------------
<S> <C> <C>
Ordinary/Traditional Life . . . . $ 95,847 $ 91,397
Universal Life . . . . . . . . . 130,953 116,829
Annuities . . . . . . . . . . . . 98,394 87,798
Industrial . . . . . . . . . . . 18,373 18,672
Other . . . . . . . . . . . . . . 2,410 2,073
------------ -----------
Total . . . . . . . . . . . . . $ 345,977 $ 316,769
============ ===========
</TABLE>
At December 31, 1993 and 1992, the fair value associated with the annuities
shown above approximated $100,000,000 and $87,100,000, respectively.
RECLASSIFICATIONS
Certain prior year amounts have been reclassified to conform with 1993
classifications.
TRANSACTIONS WITH AFFILIATED PARTIES
The Company paid certain officers and directors, or insurance agencies of
which they are shareholders, commissions of approximately $7,445,000,
$7,142,000 and $5,554,000 on premium volume of approximately $50,723,000,
$48,584,000 and $36,901,000 for 1993, 1992 and 1991, respectively.
REINSURANCE
Property and casualty premium income in the accompanying statements of
income includes approximately $65,625,000, $46,936,000 and $26,590,000 of
earned premiums on assumed business and is net of approximately $90,340,000,
$76,012,000 and $66,926,000 of premiums on ceded business for 1993, 1992 and
1991, respectively.
Written premiums for 1993, 1992 and 1991 consist of the following (000's
omitted):
<TABLE>
<CAPTION>
1993 1992 1991
----------- ----------- ----------
<S> <C> <C> <C>
Direct business . . . . . . . . . . $ 1,145,185 $ 1,039,737 $ 969,040
Assumed business . . . . . . . . . 71,581 59,480 35,194
Ceded business . . . . . . . . . . (92,986) (84,246) (73,938)
----------- ----------- ----------
Net . . . . . . . . . . . . . . $ 1,123,780 $ 1,014,971 $ 930,296
=========== =========== ==========
</TABLE>
Insurance losses and policyholder benefits in the accompanying statements of
income are net of approximately $28,994,000, $12,435,000 and $6,629,000 of
reinsurance recoveries for 1993, 1992 and 1991, respectively.
SEGMENT INFORMATION
The Company operates principally in two industries--property and casualty
insurance and life insurance. Information concerning the Company's operations
in different industries is presented below (000's omitted). Revenue is
primarily from unaffiliated customers. Identifiable assets by industry are
those assets that are used in the Company's operations in each industry.
Corporate assets are principally cash and marketable securities.
<TABLE>
<CAPTION>
Revenue Income Before Income Taxes
------------------------------------------- -------------------------------------------
1993 1992 1991 1993 1992 1991
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Property/casualty
insurance . . . . . . . . $ 1,092,135 $ 992,335 $ 903,465 $ (3,429) $ (22,687) $ (5,067)
----------- ----------- -----------
Life/health insurance . . . . 48,656 46,437 44,111 357 (2,880) (2,644)
------------ ----------- -----------
Investment income (less expenses):
Required interest
on life reserves . . . . . 16,444 17,568 15,495
Other . . . . . . . . . . 222,992 201,374 177,725 222,992 201,374 177,725
----------- ----------- -----------
239,436 218,942 193,220
----------- ----------- -----------
Realized gain on investments 51,529 35,885 7,641 51,529 35,885 7,641
----------- ----------- -----------
Other . . . . . . . . . . . . 10,396 10,552 12,698 5,578 6,138 8,512
----------- ----------- -----------
General corporate expenses . (10,032) (8,636) (9,036)
----------- ----------- -----------
Total . . . . . . . . . $ 1,442,152 $ 1,304,151 $ 1,161,135 $ 266,995 $ 209,194 $ 177,131
=========== =========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Identifiable Assets
-------------------------------------------
1993 1992 1991
----------- ----------- -----------
<S> <C> <C> <C>
Property/casualty
insurance . . . . . . . . $ 2,736,960 $ 2,463,767 $ 2,136,925
Life/health insurance . . . . 688,516 617,221 561,206
Other . . . . . . . . . . . . 42,822 44,530 47,224
Corporate assets . . . . . . 1,133,990 973,195 768,394
----------- ----------- -----------
$ 4,602,288 $ 4,098,713 $ 3,513,749
=========== =========== ===========
</TABLE>
<PAGE> 20
"Selected Quarterly Financial Data" from page 1 (incorporated
-------------------------------------------------------------
into Item 8).
-------------
SELECTED QUARTERLY FINANCIAL DATA
Listed below are financial data for each quarter in the two years ended
December 31, 1993 (000's omitted except per share data).
<TABLE>
<CAPTION>
1993
------------------------------------------------------------------------------
FIRST SECOND THIRD FOURTH FULL
QUARTER QUARTER QUARTER QUARTER YEAR
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenues . . . . . . . . . . . . $ 353,660 $371,071 $357,534 $359,887 $1,442,152
Income Before Income Taxes . . . 73,674 80,297 54,984 58,040 266,995
Net Income . . . . . . . . . . . 71,082 (3) 62,098 35,762 (3) 47,082 216,024
Net Income Per Share . . . . . . 1.38 (3) 1.21 .71 (3) .90 4.20
</TABLE>
<TABLE>
<CAPTION>
1992
---------------------------------------------------------------------------------
FIRST SECOND THIRD FOURTH FULL
QUARTER QUARTER QUARTER QUARTER YEAR
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenues . . . . . . . . . . . . $ 327,467 $317,252 $330,392 $329,040 $1,304,151
Income Before Income Taxes . . . 64,747 63,544 39,878 41,025 209,194
Net Income . . . . . . . . . . . 51,317 50,224 34,256 35,528 171,325
Net Income Per Share . . . . . . 1.03 (2) .99 .67 .70 3.39
</TABLE>
(1) Includes common stock equivalents for stock options and convertible
debentures.
(2) Adjusted to reflect a three-for-one stock split April 24, 1992.
(3) 1993 first quarter earnings include a credit for $13,845,000 ($.26 per
share) cumulative effect of a change in the method of accounting for
income taxes to conform with FASB Statement No. 109; and 1993 third
quarter earnings include a net charge of $8,641,000 ($.17 per share)
related to the effect of the 1993 increase in income tax rates on deferred
taxes recorded for various prior year items.
<PAGE> 1
EXHIBIT 23
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
2-71575 (on Form S-8), Registration Statement No. 33-34127 (on Form S-8), and
Registration Statement No. 33-48970 (on Form S-4) of Cincinnati Financial
Corporation of our reports dated February 14, 1994, appearing in and
incorporated by reference in the Annual Report on Form 10-K of Cincinnati
Financial Corporation for the year ended December 31, 1993.
DELOITTE & TOUCHE
/s/ Deloitte & Touche
Cincinnati, Ohio
March 25, 1994
<PAGE> 1
FORM 2
EXHIBIT 28
Information from reports furnished to state insurnce regulatory authorities.
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - ANALYSIS OF LOSSES AND LOSS EXPENSES
NOTES TO SCHEDULE P
(1) The Parts of Schedule P:
Part 1 - detailed information on losses and loss expenses.
Part 2 - history of incurred losses and allocated expenses.
Part 3 - history of loss and allocated expense payments.
Part 4 - history of bulk and incurred-but-not reported reserves.
Schedule P Interrogatories
(2) Lines of business A through M and R are groupings of the lines of business
used on Page 14, the state page.
(3) Reinsurance A, B, C, and D (lines N to Q) are:
Reinsurance A = nonproportional property (1988 and subsequent)
Reinsurance B = nonproportional liability (1988 and subsequent)
Reinsurance C = financial lines (1988 and subsequent)
Reinsurance D = old Schedule O line 30 (1987 and prior)
(4) The Instructions to Schedule P contain directions necessary for filling out
Schedule P.
<TABLE>
<CAPTION>
SCHEDULE P -- PART 1 -- SUMMARY
(000 omitted)
Premiums Earned Loss and Loss Expense Payments
1 -----------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were ------------------------------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... X X X X X X X X X X X X 1,251 47 539 24
2. 1984..... 346,527 14,621 331,906 255,421 11,754 17,409 1,140
3. 1985..... 457,725 23,136 434,589 332,219 12,485 23,083 587
4. 1986..... 628,402 41,439 586,963 344,813 20,051 26,042 1,084
5. 1987..... 729,771 56,952 672,819 352,902 13,448 25,580 568
6. 1988..... 761,365 62,295 699,070 368,665 22,191 26,450 744
7. 1989..... 826,607 54,680 771,927 448,164 34,180 26,663 183
8. 1990..... 888,046 59,118 828,928 445,885 12,455 24,951 196
9. 1991..... 972,407 68,065 904,342 387,592 3,048 16,969 51
10. 1992..... 1,065,317 72,417 992,900 406,466 9,911 10,455 157
11. 1993..... 1,180,520 87,817 1,092,703 295,267 4,765 3,386 62
- -----------------------------------------------------------------------------------------------------------
12. Totals .. X X X X X X X X X X X X 3,638,645 144,335 201,527 4,796
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P -- PART 1 -- SUMMARY
(000 omitted)
Loss and Loss Expense Payments
--------------------------------------
1 12
Years 9 10 11
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ... 50 9 1,728 X X X X
2. 1984..... 13,023 19,299 279,235 X X X X
3. 1985..... 15,268 23,812 366,042 X X X X
4. 1986..... 15,183 24,131 373,851 X X X X
5. 1987..... 14,397 22,401 386,867 X X X X
6. 1988..... 16,093 21,373 393,553 X X X X
7. 1989..... 16,108 23,974 464,438 X X X X
8. 1990..... 18,735 32,016 490,201 X X X X
9. 1991..... 11,636 32,034 433,496 X X X X
10. 1992..... 11,376 33,768 440,621 X X X X
11. 1993..... 6,418 29,790 323,616 X X X X
- ----------------------------------------------------------------------
12. Totals .. 138,287 262,607 3,953,648 X X X X
</TABLE>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years. Report loss
payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
----------------------------------------------- ----------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
-------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... 15,399 1,601 788 400 2
2. 1984..... 4,156 869 159 278 9
3. 1985..... 5,403 1,290 521 571 27
4. 1986..... 8,795 2,664 3,375 1,397 49
5. 1987..... 16,842 2,528 13,420 2,883 74
6. 1988..... 19,627 814 21,641 1 5,111 174
7. 1989..... 33,286 2,811 29,097 2,966 8,058 322
8. 1990..... 63,558 1,426 47,057 3,970 14,968 518
9. 1991..... 90,424 484 74,482 7,068 24,323 926
10. 1992..... 162,437 8,728 112,103 7,690 36,330 1,489 4 4
11. 1993..... 245,392 8,780 195,081 9,295 60,625 2,615 17 17
- ---------------------------------------------------------------------------------------------------------------------------
12. Totals .. 665,319 31,995 497,724 30,990 154,944 6,205 21 21
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
Subrogation Expenses and Expenses Direct
Anticipated Unpaid Unpaid and Assumed
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ... 273 15,257 X X X X
2. 1984..... 104 3,819 X X X X
3. 1985..... 149 5,327 X X X X
4. 1986..... 289 11,143 X X X X
5. 1987..... 627 31,170 X X X X
6. 1988..... 963 46,353 X X X X
7. 1989..... 1,643 65,985 X X X X
8. 1990..... 3,267 122,936 X X X X
9. 1991..... 5,182 185,933 X X X X
10. 1992..... 7,113 300,076 X X X X
11. 1993..... 24,954 505,362 X X X X
- -------------------------------------------------------------------
12. Totals .. 44,564 1,293,361 X X X X
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
--------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net * and Assumed Ceded Net Loss Expense
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ... X X X X X X X X X X X X X X X X X X X X X X X X
2. 1984..... 296,826 13,772 283,054 85.7 94.2 85.3
3. 1985..... 385,758 14,389 371,369 84.3 62.2 85.5
4. 1986..... 408,842 23,848 384,994 65.1 57.5 65.6
5. 1987..... 434,655 16,618 418,037 59.6 29.2 62.1
6. 1988..... 463,830 23,924 439,906 59.8 38.2 61.7
7. 1989..... 570,885 40,462 530,423 69.1 74.0 68.8
8. 1990..... 631,702 18,565 613,137 71.2 31.4 74.0
9. 1991..... 631,006 11,577 619,429 64.9 17.0 68.5
10. 1992..... 768,676 27,979 740,697 71.8 36.4 74.6
11. 1993..... 854,512 25,534 828,978 72.4 29.1 75.9
- ---------------------------------------------------------------------------------------------------------------------------
12. Totals... X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Net Balance Sheet Reserves
33 After Discount
Inter-Company --------------------------
Pooling 34 35
Participation Losses Loss Expenses
Percentage Unpaid Unpaid
- ---------------------------------------------------------
<S> <C> <C> <C>
1. Prior ... X X X X 14,586 671
2. 1984..... 3,446 373
3. 1985..... 4,634 693
4. 1986..... 9,506 1,637
5. 1987..... 27,734 3,436
6. 1988..... 40,453 5,900
7. 1989..... 56,606 9,379
8. 1990..... 105,219 17,717
9. 1991..... 157,354 28,579
10. 1992..... 258,122 41,954
11. 1993..... 422,398 82,964
- ---------------------------------------------------------
12. Totals .. X X X X 1,100,058 193,303
</TABLE>
*Net = (25 - 26) = (11 + 23)
<PAGE> 2
FORM 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 2 - SUMMARY
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
1 Incurred Losses and Allocated Expenses Reported At Year End (000 omitted)
Years in Which ---------------------------------------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7 8 9
Incurred 1984 1985 1986 1987 1988 1989 1990 1991
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ 95,154* 100,426 110,454 117,692 119,369 118,249 112,052 111,642
2. 1984.......... 237,057 244,082 264,171 269,005 268,858 268,389 265,312 265,479
3. 1985.......... X X X X 306,807 337,903 360,402 355,381 360,720 354,291 355,319
4. 1986.......... X X X X X X X X 334,607 359,996 373,703 391,590 377,369 372,049
5. 1987.......... X X X X X X X X X X X X 406,277 404,014 420,607 407,944 404,263
6. 1988.......... X X X X X X X X X X X X X X X X 426,972 430,763 433,149 431,468
7. 1989.......... X X X X X X X X X X X X X X X X X X X X 470,042 523,761 532,782
8. 1990.......... X X X X X X X X X X X X X X X X X X X X X X X X 536,509 581,562
9. 1991.......... X X X X X X X X X X X X X X X X X X X X X X X X X X X X 561,197
10. 1992.......... X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993.......... X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
- --------------------------------------------------------------------------------------------------------------------------
12. Totals ...............................................................................................................
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
Incurred Losses and Allocated
Expenses Reported At Year End
1 (000 omitted) Development**
Years in Which ---------------------------------------------------
Losses Were 10 11 12 13
Incurred 1992 1993 One Year Two Year
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ........ 115,166 117,147 1,981 5,505
2. 1984.......... 263,827 263,651 (176) (1,828)
3. 1985.......... 351,367 347,408 (3,959) (7,911)
4. 1986.......... 371,282 360,574 (10,708) (11,475)
5. 1987.......... 396,824 395,009 (1,815) (9,254)
6. 1988.......... 417,907 417,570 (337) (13,898)
7. 1989.......... 510,040 504,806 (5,234) (27,976)
8. 1990.......... 581,287 577,854 (3,433) (3,708)
9. 1991.......... 591,971 582,213 (9,758) 21,016
10. 1992.......... 696,474 699,816 3,342 X X X X
11. 1993.......... X X X X 774,234 X X X X X X X X
- -----------------------------------------------------------------------
12. Totals ......................................(30,097) (49,529)
</TABLE>
*Reported reserves only. Subsequent development relates only to subsequent
payments and reserves.
**Current year less first or second prior year, showing (redundant) or adverse.
SCHEDULE P - PART 3 - SUMMARY
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
1 Cumulative Paid Losses and Allocated Expenses At Year End (000 omitted)
Years in Which --------------------------------------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7 8 9
Incurred 1984 1985 1986 1987 1988 1989 1990 1991
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ 000 35,091 60,315 76,238 84,175 91,746 94,539 96,979
2. 1984.......... 142,395 193,118 216,623 233,113 243,249 252,264 256,089 255,857
3. 1985.......... X X X X 180,027 250,886 286,077 307,382 321,251 330,212 335,768
4. 1986.......... X X X X X X X X 179,268 247,800 284,662 310,176 331,317 339,068
5. 1987.......... X X X X X X X X X X X X 184,238 260,885 298,126 329,394 348,470
6. 1988.......... X X X X X X X X X X X X X X X X 186,400 261,101 306,776 338,419
7. 1989.......... X X X X X X X X X X X X X X X X X X X X 216,999 330,950 378,806
8. 1990.......... X X X X X X X X X X X X X X X X X X X X X X X X 233,582 342,020
9. 1991.......... X X X X X X X X X X X X X X X X X X X X X X X X X X X X 229,521
10. 1992.......... X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993.......... X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
Cumulative paid Losses 12 13
and Allocated Expenses Number of Number of
1 At Year End (000) omitted Claims Claims
Years in Which ------------------------- Closed With Closed
Losses Were 10 11 Loss Without Loss
Incurred 1992 1993 Payment Payment
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ........ 100,444 102,163 X X X X X X X X
2. 1984.......... 258,737 259,936 X X X X X X X X
3. 1985.......... 342,044 342,230 X X X X X X X X
4. 1986.......... 345,503 349,720 X X X X X X X X
5. 1987.......... 357,590 364,466 X X X X X X X X
6. 1988.......... 359,615 372,180 X X X X X X X X
7. 1989.......... 416,448 440,464 X X X X X X X X
8. 1990.......... 413,879 458,185 X X X X X X X X
9. 1991.......... 339,184 401,462 X X X X X X X X
10. 1992.......... 263,840 406,853 X X X X X X X X
11. 1993..........X X X X 293,826 X X X X X X X X
</TABLE>
Note: Net of salvage and subrogation received.
<TABLE>
<CAPTION>
SCHEDULE P - PART 4 - SUMMARY
- ------------------------------------------------------------------------------------------------------------------------
Bulk and Incurred But Not Reported Reserves on Losses and Allocated Expenses at Year End (000 omitted)
1 -----------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8
Were Incurred 1984 1985 1986 1987 1988 1989 1990
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ 9,861 5,109 500 514 3,137 1,294
2. 1984.......... 32,489 7,240 7,606 1,825 1,953 3,838 2,453
3. 1985.......... X X X X 35,251 11,038 10,871 2,610 11,136 5,093
4. 1986.......... X X X X X X X X 58,470 14,963 11,607 21,648 9,323
5. 1987.......... X X X X X X X X X X X X 80,846 33,391 33,045 16,622
6. 1988.......... X X X X X X X X X X X X X X X X 94,614 44,776 27,295
7. 1989.......... X X X X X X X X X X X X X X X X X X X X 68,115 54,876
8. 1990.......... X X X X X X X X X X X X X X X X X X X X X X X X 97,064
9. 1991.......... X X X X X X X X X X X X X X X X X X X X X X X X X X X X
10. 1992.......... X X X X X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993.......... X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE> SCHEDULE P - PART 4 - SUMMARY
<CAPTION>
---------------------------------------------------------------
Bulk and Incurred But Not Reported Reserves
on Losses and Allocated Expenses at Year End
1 (000 omitted)
Years in Which -------------------------------------
Losses Were 9 10 11
Incurred 1991 1992 1993
---------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ........ 371 788
2. 1984.......... 915 159
3. 1985.......... 3,784 2,916 521
4. 1986.......... 7,713 10,442 3,375
5. 1987.......... 13,316 11,155 13,420
6. 1988.......... 21,035 15,478 21,640
7. 1989.......... 42,567 22,302 26,131
8. 1990.......... 63,412 43,746 43,087
9. 1991.......... 116,242 80,794 67,414
10. 1992.......... X X X X 166,284 104,413
11. 1993.......... X X X X X X X X 185,786
</TABLE>
<PAGE> 3
FORM 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
(000 omitted)
<TABLE>
<CAPTION>
1 Premiums Earned Loss and Loss Expense Payments
-------------------------- ---------------------------------------------------
Years 2 2 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were --------------------------- --------------------- -----------------------
Earned and Direct Net 5 6 7 8
Losses Were and Coded (2-3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- ------------- ------- ----- ----- ----------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . X X X X X X X X X X X X 71 25
2. 1984 . . . . 64,401 1,446 62,955 37,458 1,022
3. 1985 . . . . 71,136 1,636 69,500 50,884 1,260
4. 1986 . . . . 76,509 1,981 74,528 41,898 1,342 2
5. 1987 . . . . 78,269 2,088 76,181 41,308 974 16
6. 1988 . . . . 71,132 2,119 75,013 40,719 600 1,101
7. 1989 . . . . 78,780 4,037 74,743 57,579 248 1,392
8. 1990 . . . . 83,970 4,762 79,208 57,782 939
9. 1991 . . . . 91,466 6,153 85,313 55,452 1 1,064
10. 1992 . . . . 98,611 6,201 92,410 55,215 762
11. 1993 . . . . 103,032 7,592 95,440 49,765 2 280 1
-------- -------- -------- ------- --- ------ --
12. Totals . . . X X X X X X X X X X X X 488,131 851 10,151 19
</TABLE>
<TABLE>
<CAPTION>
1 Loss and Loss Expense Payments
-------------------------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
- ------------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
1. Prior . . . . 8 3 99 X X X X
2. 1984 . . . . 614 1,402 39,882 31,129
3. 1985 . . . . 881 1,569 53,703 38,862
4. 1986 . . . . 973 1,528 44,766 32,902
5. 1987 . . . . 860 1,429 43,695 34,231
6. 1988 . . . . 956 1,200 42,420 29,221
7. 1989 . . . . 983 1,738 60,461 32,312
8. 1990 . . . . 894 4,347 63,068 34,006
9. 1991 . . . . 527 4,712 61,227 33,453
10. 1992 . . . . 358 4,586 60,563 31,927
11. 1993 . . . . 245 4,597 54,639 30,812
----- ------ ------- --------
12. Totals . . . 7,299 27,111 524,523 X X X X
</TABLE>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years. Report
loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
----------------------------------------- ----------------------------------------
Case Basis Bulk & IBNR Case Basis Bulk & IBNR
------------------- -------------------- ------------------ -------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
----------- ----- ----------- ----- ----------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . 399
2. 1984 . . . . 92
3. 1985 . . . . 79 4
4. 1986 . . . . 121 1 7
5. 1987 . . . . 85 20
6. 1988 . . . . 479 15 32 1
7. 1989 . . . . 453 6 41 2
8. 1990 . . . . 1,380 452 3
9. 1991 . . . . 2,876 230 1 472 4
10. 1992 . . . . 5,653 50 1,008 (9) 740 5
11. 1993 . . . . 17,450 30 2,445 25 1,489 10
------ --- ----- -- ----- --
12. Totals . . . 29,067 102 3,683 17 3,257 25
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding-
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
1. Prior . . . 39 438 13
2. 1984 . . . . 9 101 19
3. 1985 . . . . 8 91 30
4. 1986 . . . . 12 139 45
5. 1987 . . . . 8 113 53
6. 1988 . . . . 41 536 70
7. 1989 . . . . 45 531 46
8. 1990 . . . . 134 1,963 137
9. 1991 . . . . 302 3,875 216
10. 1992 . . . . 957 8,312 470
11. 1993 . . . . 4,650 25,969 2,378
----- ----- ------ ------
12. Totals . . . 6,205 42,068 3,477
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage
Loss Expenses Incurred (Incurred/Premiums Earned)
------------------------------ ---------------------------------
25 26 27 28 29 30
Direct Direct
and Assumed Ceded Net* and Assumed Ceded Net
----------- ----- ---- ----------- ----- ---
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . . X X X X X X X X X X X X X X X X X X X X X X X X
2. 1984 . . . . 39,983 39,983 62.1 63.5
3. 1985 . . . . 53,794 53,794 75.6 77.4
4. 1986 . . . . 44,908 3 44,905 68.7 0.2 57.5
5. 1987 . . . . 43,824 16 43,808 56.0 0.8 57.5
6. 1988 . . . . 43,572 616 42,956 56.5 29.1 57.3
7. 1989 . . . . 61,248 256 60,992 77.7 6.3 81.6
8. 1990 . . . . 65,034 3 65,031 77.4 0.1 82.1
9. 1991 . . . . 65,108 6 65,102 71.2 0.1 76.3
10. 1992 . . . . 68,921 46 68,875 69.9 0.7 74.5
11. 1993 . . . . 80,676 68 80,608 78.3 0.9 84.5
-------- -------- -------- -------- -------- --------
12. Totals . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Discount for Time Net Balance Sheet Reserves
Value of Money 33 After Discount
----------------------- --------------------------
31 32 Inter-Company 34 35
Pooling Loss
Loss Participation Losses Expenses
Loss Expense Percentage Unpaid Unpaid
---- ------- ------------- ------ --------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . X X X X 399 39
2. 1984 . . . . 92 9
3. 1985 . . . . 79 12
4. 1986 . . . . 120 19
5. 1987 . . . . 85 28
6. 1988 . . . . 464 72
7. 1989 . . . . 447 84
8. 1990 . . . . 1,380 583
9. 1991 . . . . 3,105 770
10. 1992 . . . . 6,620 1,692
11. 1993 . . . . 19,840 6,129
---- ------- -------- ------ -----
12. Totals . . . X X X X 32,631 9,437
</TABLE>
*Net = (25 - 26) = (11 + 23)
<PAGE> 4
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
(000 omitted)
<TABLE>
<CAPTION>
1 Premiums Earned Loss and Loss Expense Payments
--------------------------- -------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss 9 10 11 12
In Which Expense Payments Number of
Premuims Were ------------------------------------ Salvage Unallocated Total Claims
Earned and Direct Net 5 6 7 8 and Loss Net Paid Reported-
Losses Were and Ceded (2 - 3) Direct Direct Subrogation Expense (5-6+7 Direct and
Incurred Assumed and Assumed Ceded and Assumed Ceded Received Payments -8 +10) Assumed
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ...X X X X X X X X X X X X 29 47 - 4 10 (1) (15) X X X X
2. 1984..... 68,572 2,532 66,040 59,532 77 4,072 16 984 4,557 68,068 31,671
3. 1985..... 80,465 5,034 75,431 75,080 404 5,186 19 1,349 5,136 84,979 36,024
4. 1986..... 84,618 7,234 77,384 67,409 386 4,689 34 1,573 4,663 76,341 33,273
5. 1987..... 83,946 7,886 76,060 68,444 557 4,056 18 1,509 3,852 75,777 31,156
6. 1988..... 82,388 9,164 73,224 66,737 1,144 4,218 55 1,627 3,600 73,356 30,110
7. 1989..... 85,932 8,614 77,318 68,482 191 2,970 6 1,802 3,799 75,055 30,194
8. 1990..... 94,750 9,191 85,559 80,170 41 3,912 2,451 5,501 89,542 30,316
9. 1991.....109,180 12,086 97,094 68,687 2,149 1,562 5,871 76,707 29,233
10. 1992.....122,441 11,316 111,125 59,203 891 1,232 5,579 65,673 30,505
11. 1993.....127,144 10,918 116,226 35,382 229 560 4,550 40,161 29,839
- -------------------------------------------------------------------------------------------------------------------------
12. Totals..X X X X X X X X X X X X 649,155 2,847 32,376 147 14,659 47,107 725,644 X X X X
</TABLE>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years. Report
loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
------------------------------------------ -------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
-----------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .. 1,039 471 1
2. 1984..... 218
3. 1985..... 322 1 100
4. 1986..... 649 334 211
5. 1987..... 738 667 314
6. 1988..... 1,758 656 423
7. 1989..... 3,422 725 6 870
8. 1990..... 9,390 362 794 5 1,392 5
9. 1991..... 16,914 3,733 28 2,811 15
10. 1992..... 31,669 83 6,737 47 3,593 35
11. 1993..... 62,629 1 13,205 73 6,029 65
- ----------------------------------------------------------------------------------------------------------------
12. Totals.. 118,748 917 26,852 158 15,744 120
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number
Salvage Unallocated Total of Claims
and Loss Net Losses Outstanding
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
- ------------- ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C>
1. Prior .. 43 612 15
2. 1984..... 12 230 53
3. 1985..... 17 440 98
4. 1986..... 54 1,248 111
5. 1987..... 77 1,796 112
6. 1988..... 128 2,965 157
7. 1989..... 202 6,214 251
8. 1990..... 523 11,217 554
9. 1991..... 1,106 24,521 1,056
10. 1992..... 1,443 43,277 2,630
11. 1993..... 4,117 75,841 7,369
- ------------------------------------------------------------------------
12. Totals.. 7,722 167,871 12,406
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage
Loss Expenses Incurrred (Incurred/Premiums Earned)
---------------------------------- --------------------------------
25 26 27 28 29 30
Direct Direct
and Assumed Ceded Net* and Assumed Ceded Net
----------- ---------- --------- ------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
1. Prior..... X X X X X X X X X X X X X X X X X X X X X X X X
2. 1984...... 68,391 93 68,298 99.7 3.7 103.4
3. 1985...... 85,842 423 85,419 106.7 8.4 113.2
4. 1986...... 78,009 420 77,589 92.2 5.8 100.3
5. 1987...... 78,148 575 77,573 93.1 7.3 102.0
6. 1988...... 77,520 1,199 76,321 94.1 13.1 104.2
7. 1989...... 80,470 201 80,269 93.6 2.3 103.8
8. 1990...... 101,682 413 101,269 107.3 4.5 118.4
9. 1991...... 101,271 43 101,228 92.8 0.4 104.3
10. 1992...... 109,115 165 108,950 89.1 1.5 98.0
11. 1993...... 116,141 139 116,002 91.3 1.3 99.8
---------------------------------------------------------------------------------
12. Totals.... X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Discount for Time Net Balance Sheet Reserves
Value of Money 33 After Discount
------------------ ------------- --------------------------
31 32 Inter-Company 34 35
Pooling Loss
Loss Participation Losses Expenses
Loss Expense Percentage Unpaid Unpaid
----- -------- -------------- ------- ---------
<S> <C> <C> <C> <C> <C>
1. Prior..... X X X X 568 44
2. 1984...... 218 12
3. 1985...... 323 117
4. 1986...... 983 265
5. 1987...... 1,405 391
6. 1988...... 2,414 551
7. 1989...... 4,142 1,072
8. 1990...... 9,817 1,910
9. 1991...... 20,619 3,902
10. 1992...... 38,276 5,001
11. 1993...... 65,760 10,081
----------------------------------------------------------------
12. Totals.... X X X X 144,525 23,346
</TABLE>
* Net = (25-26) = (11+23)
<PAGE> 5
Form 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
(000 omitted)
<TABLE>
<CAPTION>
Premiums Earned Loss and Loss Expense Payments
1 ----------------------------------- ------------------------------
Years 2 3 4
in Which Loss Payments
Premiums Were ---------------
Earned and Direct Net 5 6
Losses Were and Ceded (2-3) Direct
Incurred Assumed and Assumed Ceded
-------------- ------- ----- ----- ----------- -----
<S> <C> <C> <C> <C> <C>
1. Prior ......... X X X X X X X X X X X X (7)
2. 1984 ......... 18,704 502 18,202 14,844 151
3. 1985 ......... 29,542 1,167 28,375 23,163 501
4. 1986 ......... 46,615 2,986 43,629 34,228 1,544
5. 1987 ......... 57,119 5,820 51,299 29,414 124
6. 1988 ......... 58,812 5,228 53,584 38,516 507
7. 1989 ......... 64,346 5,020 59,326 37,598 458
8. 1990 ......... 66,707 6,078 60,629 42,319 713
9. 1991 ......... 76,738 3,791 72,947 31,136 139
10. 1992 ......... 86,555 7,545 79,010 31,818 132
11. 1993 ......... 99,061 8,765 90,296 20,545 36
---------------- -------- -------- -------- ----------- ------
12. Totals ......... X X X X X X X X X X X X 303,574 4,305
</TABLE>
<TABLE>
<CAPTION>
Loss and Loss Expense Payments
------------------------------------------------------------------
1
Years Allocated Loss 9 10 11 12
in Which Expense Payments Number of
Premiums Were ----------------- Salvage Unallocated Total Claims
Earned and 7 8 and Loss Not Paid Reported -
Losses Were Direct Subrogation Expense (5 - 6 + 7 Direct and
Incurred and Assumed Ceded Received Payments - 8 + 10) Assumed
- -------------- ----------- ----- ----------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ....... (7) X X X X
2. 1984 ....... 1,136 54 240 1,298 17,073 14,306
3. 1985 ....... 1,694 74 358 1,653 25,935 16,148
4. 1986 ....... 2,638 217 509 2,338 37,443 15,005
5. 1987 ....... 1,939 57 425 1,834 33,006 14,026
6. 1988 ....... 3,019 46 467 2,781 43,763 13,611
7. 1989 ....... 3,554 10 560 2,564 43,248 13,253
8. 1990 ....... 2,832 98 439 3,069 47,409 14,098
9. 1991 ....... 1,512 356 3,143 35,652 13,426
10. 1992 ....... 1,157 10 354 3,486 36,319 14,425
11. 1993 ....... 370 290 2,775 23,654 17,304
--------------- ---------- ----- --------- ----------- ---------- -----------
12. Totals ....... 19,851 566 3,998 24,941 343,495 X X X X
</TABLE>
Note: For "prior" report accounts paid or received in current year only.
Report cumulative amounts of paid or received for specific years.
Report loss payments of salvage and subrogation received.
<TABLE>
<CAPTION>
1 Losses Unpaid Allocated Loss Expenses Unpaid
Years ------------------------------------------------------------------------------------
in Which Case Basis Bulk + IBNR Case Basis
Premiums Were ---------------------- ------------------------ ------------------------
Earned and 13 14 15 16 17 18
Losses Were Direct Direct Direct
Incurred and Assumed Ceded and Assumed Ceded and Assumed Ceded
----------------- ----------- ----- ----------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........ 280
2. 1984 ........ 44 1
3. 1985 ........ 397 10
4. 1986 ........ 298 74 100
5. 1987 ........ 720 351 200
6. 1988 ........ 1,746 1 444 300
7. 1989 ........ 3,963 334 11 401
8. 1990 ........ 6,085 113 366 10 646 5
9. 1991 ........ 10,475 1,461 50 1,526 10
10. 1992 ........ 24,350 240 1,421 44 2,115 15
11. 1993 ........ 33,762 298 3,644 123 4,096 45
---------------- ---------- ----- -------- ----- ---------- -----
12. Totals ........ 82,120 663 8,095 238 9,384 75
</TABLE>
<TABLE>
<CAPTION>
1
Years 21 22 23 24
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and 19 20 and Loss Net Losses Outstanding
Losses Were Direct Subrogation Expenses and Expenses Direct and
Incurred and Assumed Ceded Anticipated Unpaid Unpaid Assumed
---------------- ----------- ----- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........ 14 294 23
2. 1984 ........ 2 45 26
3. 1985 ........ 20 407 75
4. 1986 ........ 18 490 73
5. 1987 ........ 55 1,326 61
6. 1988 ........ 114 2,603 82
7. 1989 ........ 219 4,906 180
8. 1990 ........ 325 7,294 251
9. 1991 ........ 627 14,029 453
10. 1992 ........ 912 28,499 1,053
11. 1993 ........ 2,420 43,456 3,558
- -------------------------- ----- ----------- ---------- --------- ------- ------
12. Totals ........ 4,726 103,349 5,835
</TABLE>
<TABLE>
<CAPTION>
1 Total Losses and Loss and Loss Expense Percentage
Years Loss Expenses Incurred (Incurred/Premiums Earned)
in Which ------------------------------------------ ------------------------------------------
Premiums Were 25 26 27 28 29 30
Earned and
Losses Were Direct Direct
Incurred and Assumed Ceded Net* and Assumed Ceded Net
---------------- ----------- --------- -------- ----------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........ X X X X X X X X X X X X X X X X X X X X X X X X
2. 1984 ........ 17,324 206 17,118 92.6 41.0 94.0
3. 1985 ........ 26,927 585 26,342 91.1 50.1 92.8
4. 1986 ........ 39,694 1,761 37,933 85.2 59.0 86.9
5. 1987 ........ 34,513 181 34,332 60.4 3.1 66.9
6. 1988 ........ 46,920 554 46,366 79.8 10.6 86.5
7. 1989 ........ 48,633 479 48,154 75.6 9.5 81.2
8. 1990 ........ 55,642 939 54,703 83.4 15.4 90.2
9. 1991 ........ 49,880 199 49,681 65.0 5.2 68.1
10. 1992 ........ 65,259 441 64,818 75.4 5.8 82.0
11. 1993 ........ 67,612 502 67,110 68.3 5.7 74.3
---------------- ---------- --------- -------- ----------- -------- ----------
12. Totals ........ X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
1 Discount for Time Net Balance Sheet Reserves
Years Value of Money After Discount
in Which ----------------------- 33 ----------------------------
Premiums Were 31 32 Inter-Company 34 35
Earned and Pooling Loss
Losses Were Loss Participation Losses Expenses
Incurred Loss Expense Percentage Unpaid Unpaid
---------------- ------ --------- ------------- -------- ------------
<S> <C> <C> <C> <C> <C>
1. Prior ........ X X X X 280 14
2. 1984 ........ 43 2
3. 1985 ........ 387 20
4. 1986 ........ 372 118
5. 1987 ........ 1,071 255
6. 1988 ........ 2,189 414
7. 1989 ........ 4,286 620
8. 1990 ........ 6,328 966
9. 1991 ........ 11,886 2,143
10. 1992 ........ 25,487 3,012
11. 1993 ........ 36,985 6,471
---------------- ------ --------- ------------ -------- -----------
12. Totals ........ X X X X 89,314 14,035
</TABLE>
*Net = (25 - 26) = (11 + 23)
<PAGE> 6
Form 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
(000 omitted)
<TABLE>
<CAPTION>
1 Premiums Earned Loss and Loss Expense Payments
--------------- ------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were --------------------- -----------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2-3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- -------------- ------- ----- ----- ----------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . X X X X X X X X X X X X 522 20
2. 1984 . . . . 21,357 618 20,739 23,416 357 1,506
3. 1985 . . . . 35,253 994 34,259 38,715 2,076
4. 1986 . . . . 56,512 3,508 53,004 47,078 (27) 2,440 4
5. 1987 . . . . 71,332 5,336 65,996 54,422 200 2,419 3
6. 1988 . . . . 82,879 6,613 76,266 51,862 2,575
7. 1989 . . . . 96,131 7,376 88,755 64,118 976 3,169
8. 1990 . . . . 111,739 9,117 102,622 70,157 3,409
9. 1991 . . . . 134,500 12,753 121,747 69,636 2,635
10. 1992 . . . . 172,387 15,686 156,701 64,233 14 2,163
11. 1993 . . . . 208,556 14,339 194,217 29,124 1 655
-------- -------- -------- ------- ----- ------ -----
12. Totals . . . X X X X X X X X X X X X 513,283 1,521 23,067 7
</TABLE>
<TABLE>
<CAPTION>
1
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
----------- ----------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
1. Prior . . . . 1 16 558 X X X X
2. 1984 . . . . 1,096 1,467 26,032 17,464
3. 1985 . . . . 928 2,128 42,919 24,707
4. 1986 . . . . 1,429 2,545 52,086 23,993
5. 1987 . . . . 1,053 2,544 59,182 24,088
6. 1988 . . . . 1,597 2,472 56,909 23,315
7. 1989 . . . . 1,052 2,984 69,295 26,894
8. 1990 . . . . 1,162 4,018 77,584 29,718
9. 1991 . . . . 600 3,936 76,207 31,104
10. 1992 . . . . 427 3,406 69,788 37,509
11. 1993 . . . . 32 2,090 31,868 37,198
----- ------ ------- --------
12. Totals. . . . 9,377 27,606 562,428 X X X X
</TABLE>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years. Report
loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
------------- ------------------------------
Case Basis Bulk & IBNR Case Basis Bulk & IBNR
---------- ----------- ---------- -----------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
----------- ----- ----------- ----- ----------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . 2,656 434 424 30
2. 1984 . . . . 1,887 868 159 26
3. 1985 . . . . 2,256 538 520 42 3
4. 1986 . . . . 3,770 649 1,180 51 4
5. 1987 . . . . 6,296 2,410 2,301 81 6
6. 1988 . . . . 5,385 136 4,066 114 7
7. 1989 . . . . 10,176 1,981 3,367 351 225 7
8. 1990 . . . . 12,798 10 11,982 918 520 11
9. 1991 . . . . 18,387 389 23,625 1,860 1,490 24
10. 1992 . . . . 33,337 1,308 49,384 3,040 3,289 58
11. 1993 . . . . 45,100 4,001 88,321 1,944 4,560 130
------- ------ ------- ----- ------ ---
12. Totals . . . 142,048 12,724 185,329 8,113 10,428 250
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
1. Prior . . . . 28 2,704 71
2. 1984 . . . . 20 1,224 109
3. 1985 . . . . 26 2,303 105
4. 1986 . . . . 41 4,389 193
5. 1987 . . . . 70 6,332 238
6. 1988 . . . . 133 9,555 267
7. 1989 . . . . 172 11,601 556
8. 1990 . . . . 256 24,617 868
9. 1991 . . . . 531 41,760 1,275
10. 1992 . . . . 612 82,216 2,996
11. 1993 . . . . 1,147 133,053 7,596
----- ------- ------
12. Totals. . . . 3,036 319,754 14,274
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage
Loss Expenses Incurred (Incurred/Premiums Earned)
---------------------- --------------------------------
25 26 27 28 29 30
Direct Direct
and Assumed Ceded Net* and Assumed Ceded Net
----------- ----- ---- ----------- ----- ---
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . X X X X X X X X X X X X X X X X X X X X X X X X
2. 1984 . . . . 28,481 1,225 27,256 133.4 198.2 131.4
3. 1985 . . . . 45,763 541 45,222 129.8 54.4 132.0
4. 1986 . . . . 57,105 630 56,475 101.0 18.0 106.5
5. 1987 . . . . 68,133 2,619 65,514 95.5 49.1 99.3
6. 1988 . . . . 66,507 143 66,464 80.4 2.2 87.1
7. 1989 . . . . 84,211 3,315 80,896 87.6 44.3 91.1
8. 1990 . . . . 103,140 939 102,201 92.3 10.3 99.6
9. 1991 . . . . 120,240 2,273 117,967 89.4 17.8 96.9
10. 1992 . . . . 156,424 4,420 152,004 90.7 28.2 97.0
11. 1993 . . . . 170,997 6,076 164,921 82.0 42.4 84.9
-------- -------- -------- -------- -------- --------
12. Totals . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Discount for Time Net Balance Sheet Reserves
Value of Money 33 After Discount
---------------------- --------------------------
31 32 Inter-Company 34 35
Pooling Loss
Loss Participation Losses Expenses
Loss Expense Percentage Unpaid Unpaid
---- ------- ------------- ------ --------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . X X X X 2,646 58
2. 1984 . . . . 1,178 46
3. 1985 . . . . 2,238 65
4. 1986 . . . . 4,301 88
5. 1987 . . . . 6,187 145
6. 1988 . . . . 9,315 240
7. 1989 . . . . 11,211 390
8. 1990 . . . . 23,852 765
9. 1991 . . . . 39,763 1,997
10. 1992 . . . . 78,373 3,843
11. 1993 . . . . 127,476 5,577
-------- ------- ------
12. Totals. . . . X X X X 306,540 13,214
</TABLE>
*Net = (25 - 26) = (11 + 23)
<PAGE> 7
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 1E - COMMERCIAL MULTIPLE PERIL
(000 omitted)
<TABLE>
<CAPTION>
1 Premiums Earned Loss and Loss Expense Payments
--------------- ------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were ------------- ----------------
Earned and Direct Not 5 6 7 8
Losses Were and Ceded (2-3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- -------------- ------- ----- ----- ----------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . X X X X X X X X X X X X 316 184 24
2. 1984 . . . . 60,244 6,122 54,122 31,833 1,970 5,096 180
3. 1985 . . . . 89,871 9,040 80,831 46,327 3,637 8,215 170
4. 1986 . . . . 131,819 14,534 117,285 54,746 7,025 9,144 413
5. 1987 . . . . 156,026 19,016 137,010 60,797 6,591 8,817 210
6. 1988 . . . . 171,907 20,285 151,622 67,464 9,844 8,717 107
7. 1989 . . . . 185,362 10,885 174,477 107,957 24,271 9,992 14
8. 1990 . . . . 196,854 10,861 185,993 80,885 7,448 8,298 47
9. 1991 . . . . 211,465 13,824 197,641 69,716 949 6,831 19
10. 1992 . . . . 229,463 13,861 215,602 92,001 5,443 3,193 82
11. 1993 . . . . 257,089 19,622 237,467 70,601 492 1,253 4
-------- -------- -------- ------- ------ ------ -----
12. Totals . . . X X X X X X X X X X X X 682,643 67,670 68,740 1,270
</TABLE>
<TABLE>
<CAPTION>
1 Loss and Loss Expense Payments
------------------------------
Years 9 10 11 12
in Which Number of Number of
Premium Were Salvage Unallocated Total Claims
Earned and and Less Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
----------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
1. Prior . . . . 5 (9) 467 X X X X
2. 1984 . . . . 1,168 6,537 41,316 15,708
3. 1985 . . . . 2,490 8,592 59,327 20,038
4. 1986 . . . . 2,282 8,250 64,702 19,420
5. 1987 . . . . 2,549 7,326 70,139 21,556
6. 1988 . . . . 3,258 6,637 72,867 22,320
7. 1989 . . . . 3,175 7,130 100,794 25,512
8. 1990 . . . . 2,527 5,426 87,114 76,390
9. 1991 . . . . 1,558 6,177 80,756 27,398
10. 1992 . . . . 1,552 7,603 97,272 27,849
11. 1993 . . . . 706 7,000 78,358 31,243
------ ------ ------- --------
12. Totals. . . . 21,270 70,669 753,112 X X X X
</TABLE>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years. Report
loss payments not of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
------------- ------------------------------
Case Basis Bulk & IBNR Case Basis Bulk & IBNR
---------- ----------- ---------- -----------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
----------- ----- ----------- ----- ----------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . 3,715 30 26 60 2
2. 1984 . . . . 678 76 4
3. 1985 . . . . 924 10 177 9
4. 1986 . . . . 1,717 394 440 303 15
5. 1987 . . . . 3,820 100 459 567 28
6. 1988 . . . . 4,096 153 1,082 1,802 91
7. 1989 . . . . 9,707 630 1,930 2,743 138
8. 1990 . . . . 17,000 235 5,870 5,235 243
9. 1991 . . . . 23,657 45 7,224 195 9,308 438
10. 1992 . . . . 35,552 1,804 12,396 238 14,676 636
11. 1993 . . . . 61,754 619 24,028 367 23,772 1,098
------- ----- ------ --- ------ -----
12. Totals . . . 162,120 4,020 53,454 800 59,719 2,702
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Not Losses Outstanding
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
1. Prior . . . . 56 3,824 34
2. 1984 . . . . 20 770 39
3. 1985 . . . . 28 1,110 82
4. 1986 . . . . 90 2,141 123
5. 1987 . . . . 152 4,870 150
6. 1988 . . . . 227 6,963 199
7. 1989 . . . . 453 13,565 388
8. 1990 . . . . 1,090 29,717 714
9. 1991 . . . . 1,405 40,916 1,036
10. 1992 . . . . 1,526 61,472 2,059
11. 1993 . . . . 5,017 112,487 6,458
------ ------ ------ -------
12. Totals. . . . 10,064 277,835 11,282
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage
Loss Expenses Incurred (Incurred/Premiums Earned)
---------------------- --------------------------------
25 26 27 28 29 30
Direct Direct
and Assumed Ceded Net* and Assumed Ceded Net
----------- ----- ---- ----------- ----- ---
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . X X X X X X X X X X X X X X X X X X X X X X X X
2. 1984 . . . . 44,240 2,154 42,086 73.4 35.2 77.8
3. 1985 . . . . 64,263 3,826 60,437 71.5 42.3 74.8
4. 1986 . . . . 74,690 7,847 66,843 56.7 54.0 57.0
5. 1987 . . . . 81,938 6,929 75,009 52.5 36.4 54.7
6. 1988 . . . . 90,025 10,195 79,830 52.4 50.3 52.7
7. 1989 . . . . 139,412 25,053 114,359 75.2 230.2 65.5
8. 1990 . . . . 124,804 7,973 116,831 63.4 73.4 62.8
9. 1991 . . . . 123,318 1,646 121,672 58.3 11.9 61.6
10. 1992 . . . . 166,947 8,203 158,744 72.8 59.2 73.6
11. 1993 . . . . 193,425 2,580 190,845 75.2 13.1 80.4
-------- -------- -------- -------- -------- --------
12. Totals . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Discount for Time Net Balance Sheet Reserves
Value of Money 33 After Discount
----------------- --------------------------
31 32 Inter-Company 34 35
Pooling Loss
Loss Participation Losses Expenses
Loss Expense Percentage Unpaid Unpaid
---- ------- ------------- ------ --------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . X X X X 3,710 114
2. 1984 . . . . 678 92
3. 1985 . . . . 914 196
4. 1986 . . . . 1,763 378
5. 1987 . . . . 4,179 691
6. 1988 . . . . 5,025 1,938
7. 1989 . . . . 10,507 3,058
8. 1990 . . . . 22,635 7,082
9. 1991 . . . . 30,641 10,275
10. 1992 . . . . 45,906 15,566
11. 1993 . . . . 84,796 27,691
------ ------- ------- ------- ------
X X X X 210,754 67,081
</TABLE>
*Net = (25 - 26) = (11 + 23)
<PAGE> 8
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P -- PART 1F -- SECTION 1 -- MEDICAL MALPRACTICE -- OCCURRENCE
(000 omitted)
<TABLE>
<CAPTION>
1 Premiums Earned
---------------------------
Years 2 3 4 Less Payments
In which -----------------------
Premiums Were
Earned and Direct 5 6
Losses Were and Ceded (2 - 3) Direct
Incurred Assumed and Assumed Ceded
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Price...... X X X X X X X X X X X X 6
2. 1984....... 906 29 877 889
3. 1985....... 1,212 53 1,159 1,074
4. 1986....... 1,863 128 1,735 1,440 60
5. 1987....... 3,085 270 2,815 2,534
6. 1988....... 7,073 636 6,437 2,604
7. 1989....... 10,128 775 9,353 2,471
8. 1990....... 9,990 756 9,234 1,940
9. 1991....... 10,013 744 9,269 740
10. 1992....... 10,172 745 9,427 447
11. 1993....... 10,545 858 9,687 106
- --------------- ------- -------- -------- ----------- -----
12. Totals..... X X X X X X X X X X X X 14,251 60
- --------------- ------- -------- -------- ----------- -----
</TABLE>
<TABLE>
<CAPTION>
Allocated Loss
Years Expense Payments 9 10 11 12
in which ----------------------- Number of
Premiums Were Salvage Unallocated Total Claims
Earned and 7 8 and Loss Net Paid Reported -
Losses Were Direct Subrogation Expense (5 - 6 + 7 Direct and
Incurred and Assumed Ceded Reclaimed Payments - 8 + 10) Assumed
- -------------- ----------- ------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
1. Price..... 4 6 10 X X X X
2. 1984...... 620 64 537 2,046 23
3. 1985...... 564 1 2 409 2,046 52
4. 1986...... 995 2 9 644 3,017 94
5. 1987...... 1,021 5 553 4,108 132
6. 1988...... 1,095 6 17 688 4,381 240
7. 1989...... 618 23 632 3,721 283
8. 1990...... 745 23 129 2,814 373
9. 1991...... 510 1 203 1,453 415
10. 1992...... 186 2 148 781 320
11. 1993...... 39 138 283 240
- -------------- --------- ------ -------- --------- --------- ---------
12. Totals... 6,397 9 152 4,081 24,660 X X X X
- -------------- --------- ------ -------- --------- --------- ---------
</TABLE>
Note: For "prior", report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years.
Report loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------- ----------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
-------------------------------- ---------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and and and and
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded
<S> <C> <C> <C> <C>
1. Price...... 165 16
2. 1984....... 11 25
3. 1985....... 71 60
4. 1986....... 265 12 200
5. 1987....... 268 47 337
6. 1988....... 605 2,760 630
7. 1989....... 820 4,098 1,114
8. 1990....... 1,535 3,907 1,867 10
9. 1991....... 3,479 3,767 3,077 20
10. 1992....... 2,451 5,503 3,148 40
11. 1993....... 2,203 6,700 4,150 80
- --------------- ------- -------- -------- ------- ----- ----
12. Totals..... 11,773 26,794 14,624 150
- --------------- ------- -------- -------- ------- ----- ----
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number
of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
- -------------- ----------- ---------- ------------ -----------
<S> <C> <C> <C>
1. Price..... 181 17
2. 1984...... 36 3
3. 1985...... 1 132 4
4. 1986...... 3 480 16
5. 1987...... 3 655 11
6. 1988...... 26 3,921 23
7. 1989...... 42 6,074 27
8. 1990...... 46 7,345 65
9. 1991...... 63 10,366 108
10. 1992...... 52 11,114 125
11. 1993...... 100 13,073 150
- -------------- ------- ------ -----
12. Totals... 336 53,377 549
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage
Loss Expenses Incurred (Incurred/Premiums Earned)
------------------------------------- -------------------------------------------
25 26 27 28 29 30
Direct Direct
and Assumed Ceded Net * and Assumed Ceded Net
- -------------- ----------- ------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
1. Price..... X X X X X X X X X X X X X X X X X X X X X X X X
2. 1984...... 2,082 2,082 229.8 237.4
3. 1985...... 2,179 1 2,178 179.8 1.9 187.9
4. 1986...... 3,599 62 3,497 191.0 48.1 201.6
5. 1987...... 4,763 4,763 154.4 169.2
6. 1988...... 8,308 6 8,302 117.6 0.9 129.0
7. 1989...... 9,795 9,795 96.7 104.7
8. 1990...... 10,169 10 10,159 101.8 1.3 110.0
9. 1991...... 11,839 20 11,819 118.2 2.7 127.5
10. 1992...... 11,935 40 11,895 117.3 5.4 126.2
11. 1993...... 13,436 80 13,356 127.4 9.3 137.9
- -------------- --------- ------ -------- --------- --------- ---------
12. Totals... X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Discount for Time Net Balance Sheet Reserves
Value of Money 33 After Discount
--------------------- -------------------------
31 32 34 35
Inter-Company
Pooling Loss
Loss Participation Losses Expenses
Loss Expense Percentage Unpaid Unpaid
- -------------- ------- -------- ------------ ------ ---------
<S> <C> <C> <C>
1. Price..... X X X X 165 16
2. 1984...... 11 25
3. 1985...... 71 61
4. 1986...... 277 203
5. 1987...... 315 340
6. 1988...... 3,265 656
7. 1989...... 4,918 1,156
8. 1990...... 5,442 1,903
9. 1991...... 7,246 3,120
10. 1992...... 7,954 3,160
11. 1993...... 8,903 4,170
- -------------- ------ ------- -------- ----- ------
12. Totals... X X X X 38,567 14,810
</TABLE>
*Net = (25-26) = (11+23)
<PAGE> 9
FORM 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE
(000 omitted)
<TABLE>
<CAPTION>
1 Premiums Earned Loss and Loss Expense Payments
------------------------------- --------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were ------------------------ ------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ... X X X X X X X X X X X X
2. 1984.....
3. 1985.....
4. 1986.....
5. 1987.....
6. 1988.....
7. 1989.....
8. 1990.....
9. 1991.....
10. 1992.....
11. 1993.....
- -------------------------------------------------------------------------------------------------------------------
12. Totals .. X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Loss and Expense Payments Made
1 ----------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7) Direct and
Incurred Received Payments - 8 + 10) Assumed
- --------------------------------------------------------------------------------------
<S> <C>
1. Prior ... X X X X
2. 1984.....
3. 1985.....
4. 1986.....
5. 1987.....
6. 1988.....
7. 1989.....
8. 1990.....
9. 1991.....
10. 1992.....
11. 1993.....
- -------------------------------------------------------------------------------------
12. Totals .. X X X X
</TABLE>
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------- --------------------------------------------------
Case Basis Bulk & IBNR Case Basis Bulk & IBNR
13 14 15 16 17 18 19 20
--------------------- ----------------------------- ------------------------- ----------------------
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
1. Prior ...
2. 1984.....
3. 1985.....
4. 1986.....
5. 1987.....
6. 1988.....
7. 1989.....
8. 1990.....
9. 1991.....
10. 1992.....
11. 1993.....
- -----------------------------------------------------------------------------------------------------------------------------
12. Totals ..
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding
Subrogation Expense and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
- ---------------------------------------------------------------------------------
<S> <C>
1. Prior ...
2. 1984.....
3. 1985.....
4. 1986.....
5. 1987.....
6. 1988.....
7. 1989.....
8. 1990.....
9. 1991.....
10. 1992.....
11. 1993.....
- ---------------------------------------------------------------------------------
12. Totals ..
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
--------------------------------- ----------------------------------------- ----------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net * and Assumed Ceded Net Loss Expense
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ... X X X X X X X X X X X X X X X X X X X X X X X X
2. 1984.....
3. 1985.....
4. 1986.....
5. 1987.....
6. 1988.....
7. 1989.....
8. 1990.....
9. 1991.....
10. 1992.....
11. 1993.....
- --------------------------------------------------------------------------------------------------------------------------------
12. Totals .. X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
33 Net Balance Sheet Reserves
After Discount
---------------------------------
Inter-Company 34 35
Pooling
Participation Losses Loss Expenses
Percentage Unpaid Unpaid
- --------------------------------------------------------------------------
<S> <C>
1. Prior ... X X X X
2. 1984.....
3. 1985.....
4. 1986.....
5. 1987.....
6. 1988.....
7. 1989.....
8. 1990.....
9. 1991.....
10. 1992.....
11. 1993.....
- --------------------------------------------------------------------------
12. Totals .. X X X X
</TABLE>
*Net = (25 - 26) = (11 + 23)
<PAGE> 10
FORM 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 1G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS),
BOILER AND MACHINERY)
(000 omitted)
<TABLE>
<CAPTION>
1 Premiums Earned Loss and Loss Expense Payments
------------------------------- --------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were ------------------------ ------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... X X X X X X X X X X X X
2. 1984..... 1,676 120 1,556 224
3. 1985..... 2,005 136 1,869 473 21
4. 1986..... 2,404 161 2,243 523 13
5. 1987..... 2,726 191 2,535 306
6. 1988..... 2,979 510 2,469 598
7. 1989..... 3,122 151 2,971 571
8. 1990..... 3,580 61 3,519 1,105 9
9. 1991..... 3,855 76 3,780 502 1
10. 1992..... 8,023 2,449 5,574 2,300 585 18 18
11. 1993..... 11,920 4,867 7,053 2,445 844 87 48
- ---------------------------------------------------------------------------------------------------------------
12. Totals .. X X X X X X X X X X X X 9,047 1,429 151 66
</TABLE>
<TABLE>
<CAPTION>
Loss and Loss Expense Payments
1 ---------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7) Direct and
Incurred Received Payments - 8 + 10) Assumed
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ... X X X X
2. 1984..... 11 5 229 X X X X
3. 1985..... 4 10 504 X X X X
4. 1986..... 13 10 546 X X X X
5. 1987..... 11 2 308 X X X X
6. 1988..... 13 1 599 X X X X
7. 1989..... 2 16 589 X X X X
8. 1990..... 2 74 1,188 X X X X
9. 1991..... 56 559 X X X X
10. 1992..... 123 1,838 X X X X
11. 1993..... 131 1,771 X X X X
- --------------------------------------------------------------------------------------
12. Totals .. 56 428 8,131 X X X X
</TABLE>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years. Report
loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------- --------------------------------------------------
Case Basis Bulk & IBNR Case Basis Bulk & IBNR
-------------------- -------------------------- ------------------------ ----------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... 1
2. 1984.....
3. 1985.....
4. 1986.....
5. 1987.....
6. 1988.....
7. 1989..... 8 1
8. 1990..... 2
9. 1991..... 1 6
10. 1992..... 539 235 96 24 107 37 3 3
11. 1993..... 2,195 991 435 99 323 136 13 13
- -----------------------------------------------------------------------------------------------------------------------------
12. Totals .. 2,746 1,226 531 123 437 173 16 16
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expense and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ... 1
2. 1984.....
3. 1985.....
4. 1986.....
5. 1987.....
6. 1988.....
7. 1989..... 9
8. 1990..... 2
9. 1991..... 7
10. 1992..... 20 466
11. 1993..... 160 1,887 8
- ---------------------------------------------------------------------------------
12. Totals .. 180 2,372 8
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
--------------------------------- ----------------------------------------- ----------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net * and Assumed Ceded Net Loss Expense
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ... X X X X X X X X X X X X X X X X X X X X X X X X
2. 1984..... 229 229 13.7 14.7
3. 1985..... 504 504 25.1 27.0
4. 1986..... 546 546 22.7 24.3
5. 1987..... 308 308 11.3 12.1
6. 1988..... 599 599 20.1 24.3
7. 1989..... 598 598 19.2 20.1
8. 1990..... 1,190 1,190 33.2 33.8
9. 1991..... 566 566 14.7 15.0
10. 1992..... 3,206 902 2,304 40.0 36.8 41.3
11. 1993..... 5,789 2,131 3,658 48.6 43.8 51.9
- --------------------------------------------------------------------------------------------------------------------------------
12. Totals .. X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
33 Net Balance Sheet Reserves
After Discount
---------------------------------
Inter-Company 34 35
Pooling
Participation Losses Loss Expenses
Percentage Unpaid Unpaid
- --------------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ... X X X X 1
2. 1984.....
3. 1985.....
4. 1986.....
5. 1987.....
6. 1988.....
7. 1989..... 8 1
8. 1990..... 2
9. 1991..... 1 6
10. 1992..... 376 90
11. 1993..... 1,540 347
- --------------------------------------------------------------------------
12. Totals .. X X X X 1,928 444
</TABLE>
*Net = (25 - 26) = (11 + 23)
<PAGE> 11
FORM 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURENCE
(000 omitted)
<TABLE>
<CAPTION>
1 Premiums Earned Loss and Loss Expense Payments
------------------------------- --------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were ------------------------ ------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... X X X X X X X X X X X X 327 197
2. 1984..... 24,921 1,010 23,911 23,375 8,127 1,921 654
3. 1985..... 38,227 1,854 36,373 23,352 6,553 1,425 192
4. 1986..... 80,222 6,229 73,993 29,220 10,657 2,072 392
5. 1987..... 101,902 9,687 92,215 23,522 3,287 2,078 45
6. 1988..... 103,863 10,669 93,194 25,748 8,316 1,421 57
7. 1989..... 104,494 9,466 95,028 26,543 5,354 1,847 82
8. 1990..... 105,996 9,613 96,383 26,869 4,249 1,685 49
9. 1991..... 108,218 9,785 98,433 11,022 621 1,094
10. 1992..... 111,022 10,020 101,002 11,848 3,133 730 34
11. 1993..... 116,627 10,388 106,239 2,187 52
- -------------------------------------------------------------------------------------------------------------------
12. Totals .. X X X X X X X X X X X X 204,013 50,297 14,522 1,505
</TABLE>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years, Report
loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Loss and Loss Expense Payments
1 ---------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ... 524 X X X X
2. 1984..... 1,474 1,213 17,728 1,746
3. 1985..... 198 1,692 19,724 2,104
4. 1986..... 252 1,401 21,644 2,188
5. 1987..... 425 1,918 24,186 2,277
6. 1988..... 76 1,366 20,162 2,068
7. 1989..... 230 2,225 25,179 2,026
8. 1990..... 1,012 2,299 20,555 2,167
9. 1991..... 7 1,302 12,797 1,976
10. 1992..... 68 1,768 11,179 1,877
11. 1993..... 4 1,194 3,433 1,519
- --------------------------------------------------------------------------------------
12. Totals .. 3,746 16,378 183,111 X X X X
</TABLE>
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------- --------------------------------------------------
Case Basis Bulk & IBNR Case Basis Bulk & IBNR
-------------------- -------------------------- ------------------------ ----------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ... 6,670 665 339 290
2. 1984..... 1,151 68 5
3. 1985..... 578 720 88 15
4. 1986..... 1,157 1,620 856 120 30
5. 1987..... 2,626 8,081 489 40
6. 1988..... 2,996 420 10,344 501 75
7. 1989..... 2,781 39 12,284 2,597 921 175
8. 1990..... 11,987 706 14,221 3,033 1,543 221
9. 1991..... 10,293 50 24,196 4,927 2,230 365
10. 1992..... 21,475 4,966 22,317 4,172 3,447 575
11. 1993..... 15,583 2,714 34,984 6,218 5,775 879
- -----------------------------------------------------------------------------------------------------------------------------
12. Totals .. 77,297 11,900 127,622 20,947 15,472 2,380
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding
Subrogation Expense and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ... 66 6,700 113
2. 1984..... 12 1,276 24
3. 1985..... (69) 46
4. 1986..... 5 488 42
5. 1987..... 162 11,318 51
6. 1988..... 196 13,542 66
7. 1989..... 228 13,403 94
8. 1990..... 387 24,178 229
9. 1991..... 506 31,883 320
10. 1992..... 416 37,942 405
11. 1993..... 789 47,320 521
- -----------------------------------------------------------------------------
12. Totals .. 2,767 187,931 1,901
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
--------------------------------- ----------------------------------------- ----------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net * and Assumed Ceded Net Loss Expense
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ... X X X X X X X X X X X X X X X X X X X X X X X X
2. 1984..... 27,740 8,786 18,954 111.3 869.9 79.3
3. 1985..... 27,135 7,480 19,655 71.0 403.5 54.0
4. 1986..... 34,831 12,699 22,132 43.4 203.9 29.9
5. 1987..... 38,876 3,372 35,504 38.2 34.8 38.5
6. 1988..... 42,572 8,868 33,704 41.0 83.1 36.2
7. 1989..... 46,829 8,247 38,582 44.8 87.1 40.6
8. 1990..... 58,991 8,258 50,733 55.7 85.9 52.6
9. 1991..... 50,643 5,963 44,680 46.8 60.9 45.4
10. 1992..... 62,001 12,880 49,121 55.8 128.5 48.6
11. 1993..... 60,564 9,811 50,753 51.9 94.4 47.8
- --------------------------------------------------------------------------------------------------------------------------------
12. Totals .. X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
33 Net Balance Sheet Reserves
After Discount
---------------------------------
Inter-Company 34 35
Pooling
Participation Losses Loss Expenses
Percentage Unpaid Unpaid
- --------------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ... X X X X 6,344 356
2. 1984..... 1,151 75
3. 1985..... (142) 73
4. 1986..... 393 95
5. 1987..... 10,707 611
6. 1988..... 12,920 622
7. 1989..... 12,429 974
8. 1990..... 22,469 1,709
9. 1991..... 29,512 2,371
10. 1992..... 34,654 3,288
11. 1993..... 41,635 5,685
- --------------------------------------------------------------------------
12. Totals .. X X X X 172,072 15,859
</TABLE>
*Net = (25 - 26) = (11 + 23)
<PAGE> 12
FORM 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PARTH 1H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE
(000 omitted)
<TABLE>
<CAPTION>
1 Premiums Earned Loss and Loss Expense Payments
-------------------------------- ----------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were ------------------------- -----------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior.... X X X X X X X X X X X X
2. 1984..... 405 16 389 3 21
3. 1985..... 1,132 52 1,080 652 50 51
4. 1986..... 5,805 416 5,389 56 42
5. 1987..... 9,627 829 8,798 192 123
6. 1988..... 9,091 840 8,251 1,373 216
7. 1989..... 8,449 697 7,752 15 66
8. 1990..... 8,887 734 8,153 139 134
9. 1991..... 9,342 769 8,573 35 86
10. 1992..... 10,616 872 9,744 207 20
11. 1993..... 12,733 1,160 11,573 1
- ---------------------------------------------------------------------------------------------------------------
12. Totals .. X X X X X X X X X X X X 2,672 50 760
</TABLE>
<TABLE>
<CAPTION>
Loss and Loss Expense Payments
1 -----------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage UnallocateD Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior.... X X X X
2. 1984..... 2 26 6
3. 1985..... 70 723 5
4. 1986..... 7 105 10
5. 1987..... 27 342 8
6. 1988..... 57 1,646 11
7. 1989..... 14 95 7
8. 1990..... 25 298 12
9. 1991..... 18 139 14
10. 1992..... 24 251 29
11. 1993..... 30 31 44
- --------------------------------------------------------------------------------
12. Totals .. 274 3,656 X X X X
</TABLE>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years. Report
loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------- --------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
--------------------- ------------------------- --------------------- ----------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ...
2. 1984.....
3. 1985.....
4. 1986.....
5. 1987..... 5
6. 1988..... 108 76
7. 1989..... 43 5
8. 1990..... 175 15
9. 1991..... 223 25 5
10. 1992..... 729 2,860 120 40 10
11. 1993..... 843 3,140 400 83 15
- ---------------------------------------------------------------------------------------------------------------------------
12. Totals... 2,126 76 6,000 520 168 30
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Clalas
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
- ---------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ...
2. 1984.....
3. 1985.....
4. 1986.....
5. 1987..... 5 1
6. 1988..... 32 4
7. 1989..... 48 2
8. 1990..... 2 192 7
9. 1991..... 2 245 8
10. 1992..... 21 3,520 23
11. 1993..... 50 3,701 41
- ---------------------------------------------------------------------
12. Totals... 75 7,743 86
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
---------------------------------- -------------------------------------- --------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net * and Assumed Ceded Net Loss Expense
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ... X X X X X X X X X X X X X X X X X X X X X X X X
2. 1984..... 26 26 6.4 6.7
3. 1985..... 773 50 723 68.3 96.2 66.9
4. 1986..... 105 105 1.8 1.9
5. 1987..... 347 347 3.6 3.9
6. 1988..... 1,754 76 1,678 19.3 9.0 20.3
7. 1989..... 143 143 1.7 1.8
8. 1990..... 490 490 5.5 6.0
9. 1991..... 389 5 384 4.2 0.7 4.5
10. 1992..... 3,901 130 3,771 36.7 14.9 38.7
11. 1993..... 4,147 415 3,732 32.6 35.8 32.2
- ---------------------------------------------------------------------------------------------------------------------------
12. Totals .. X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Net Balance Sheet Reserves
---------------------------
33 After Discount
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
- ----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ... X X X X
2. 1984.....
3. 1985.....
4. 1986.....
5. 1987..... 5
6. 1988..... 32
7. 1989..... 43 5
8. 1990..... 175 17
9. 1991..... 223 22
10. 1992..... 3,469 51
11. 1993..... 3,583 118
- ----------------------------------------------------------------
12. Totals .. X X X X 7,530 213
</TABLE>
<PAGE> 13
<TABLE>
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 1I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY AND THEFT)
(000 OMITED)
<CAPTION>
1 Premiums Earned Loss and Loss Expense Payments
-------------------------------- ----------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were ------------------------- -----------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... X X X X X X X X X X X X 2,238 131
2. 1992..... 43,446 1,913 41,533 18,863 581 200 13
3. 1993..... 47,526 2,644 44,882 13,081 123
- ---------------------------------------------------------------------------------------------------------------
4. Totals .. X X X X X X X X X X X X 34,182 581 454 13
</TABLE>
<TABLE>
<CAPTION>
Loss and Loss Expense Payments
-----------------------------------------
9 10 11 12
Number of
Salvage Unallocated Total Claims
and Loss Net Paid Reported -
Subrogation Expense (5 - 6 + 7 Direct and
Received Payments - 8 + 10) Assumed
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ... 108 12 2,381 X X X X
2. 1992..... 158 1,194 19,663 X X X X
3. 1993..... 108 1,116 14,320 X X X X
- --------------------------------------------------------------------------------
4. Totals .. 374 2,322 36,364 X X X X
</TABLE>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years. Report loss
payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------- --------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
--------------------- ------------------------- --------------------- ----------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ... 1,091 49 1,224 130
2. 1992..... 1,650 469 101
3. 1993..... 3,644 490 194
- ---------------------------------------------------------------------------------------------------------------------------
4. Totals .. 6,385 49 2,183 425
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
- ---------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ... 46 2,442 71
2. 1992..... 107 2,327 27
3. 1993..... 1,275 5,603 393
- ---------------------------------------------------------------------
4. Totals .. 1,428 10,372 436
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
---------------------------------- -------------------------------------- --------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net * and Assumed Ceded Net Loss Expense
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ... X X X X X X X X X X X X X X X X X X X X X X X X
2. 1992..... 22,584 594 21,990 52.0 31.1 52.9
3. 1993..... 19,923 19,923 41.9 44.4
- ---------------------------------------------------------------------------------------------------------------------------
4. Totals .. X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Net Balance Sheet Reserves
After Discount
---------------------------
33
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
- ----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ... X X X X 2,266 176
2. 1992..... 2,119 208
3. 1993..... 4,134 1,469
- ----------------------------------------------------------------
4. Totals .. X X X X 8,519 1,853
</TABLE>
*Net = (25 - 26) = (11 + 23)
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
(000 omitted)
<TABLE>
<CAPTION>
Premiums Earned Loss and Loss Expense Payments
1 -------------------------------- ----------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were ------------------------- -----------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ... X X X X X X X X X X X X (869) 207
2. 1992..... 140,683 2,916 137,767 67,429 21 423
3. 1993..... 148,107 3,777 144,330 71,107 3,376 228
- ---------------------------------------------------------------------------------------------------------------
4. Totals .. X X X X X X X X X X X X 137,667 3,397 858
</TABLE>
<TABLE>
<CAPTION>
Loss and Loss Expense Payments
-----------------------------------------
9 10 11 12
Number of
Salvage Unallocated Total Claims
and Loss Net Paid Reported -
Subrogation Expense (5 - 6 + 7 Direct and
Received Payments - 8 + 10) Assumed
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.... 952 2 (660) X X X X
2. 1992..... 7,184 5,510 73,341 70,306
3. 1993..... 4,470 5,851 73,810 65,913
-------------------------------------------------------------------------------
4. Totals... 12,606 11,363 146,491 X X X X
</TABLE>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years. Report
loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------- --------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
--------------------- ------------------------- --------------------- ----------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior.... 1,211 5 1,457 10 200
2. 1992..... 571 1,521 6 277
3. 1993..... 7,450 4 2,196 519
- ---------------------------------------------------------------------------------------------------------------------------
4. Totals... 9,232 9 5,174 16 996
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss net Losses Outstanding
Subrogation Expense and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
<S> <C> <C> <C>
1. Prior.... 1,397 4,250 779
2. 1992..... 926 3,289 315
3. 1993..... 5,001 15,162 3,059
--------------------------------------------------------------------------------------
4. Totals... 7,324 22,701 4,153
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
---------------------------------- -------------------------------------- --------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net * and Assumed Ceded Net Loss Expense
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior.... X X X X X X X X X X X X X X X X X X X X X X X X
2. 1992..... 76,657 27 76,630 54.5 1.0 55.6
3. 1993..... 92,352 3,380 88,972 62.4 89.5 61.6
- ---------------------------------------------------------------------------------------------------------------------------
4. Totals... X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Net Balance Sheet Reserves
After Discount
---------------------------
33
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
- ----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior.... X X X X 2,653 1,597
2. 1992..... 2,086 1,203
3. 1993..... 9,642 5,520
- ----------------------------------------------------------------
4. Totals... X X X X 14,381 8,320
</TABLE>
*Net = (25 - 26) = (11 + 23)
<PAGE> 14
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 1K - FIDELITY, SURETY, FINANCIAL GUARANTY, MORTGAGE GUARANTY
<TABLE>
<CAPTION>
1 Premiums Earned Loss and Loss Expense Payments
-------------------------------- ----------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were ------------------------- -----------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... X X X X X X X X X X X X 2,236 1,288 269 55
2. 1992..... 12,620 1,366 11,254 498 287
3. 1993..... 12,241 464 11,777 711 52
- ---------------------------------------------------------------------------------------------------------------
4. Totals .. X X X X X X X X X X X X 3,445 1,288 608 55
</TABLE>
<TABLE>
<CAPTION>
Loss and Loss Expense Payments
1 -----------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.... 107 46 1,208 X X X X
2. 1992..... 33 35 820 X X X X
3. 1993..... 3 111 874 X X X X
- ------------------------------------------------------------------------------
4. Totals... 143 192 2,902 X X X X
</TABLE>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years. Report
loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------- --------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
--------------------- ------------------------- --------------------- ----------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... 1,502 145 531 4 178 60
2. 1992..... 2,367 170 2 302 60
3. 1993..... 1,254 571 23 580 120
- ---------------------------------------------------------------------------------------------------------------------------
4. Totals... 5,123 145 1,272 29 1,060 240
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
- ---------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior.... 46 2,048 92
2. 1992..... 58 2,835 56
3. 1993..... 95 2,357 39
- ---------------------------------------------------------------------
4. Totals... 199 7,240 187
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
---------------------------------- -------------------------------------- --------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net * and Assumed Ceded Net Loss Expense
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... X X X X X X X X X X X X X X X X X X X X X X X X
2. 1992..... 3,717 62 3,655 29.5 4.5 32.5
3. 1993..... 3,374 143 3,231 27.6 30.8 27.4
- -------------------------------------------------------------------------------------------------------------------------------
4. Totals... X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Net Balance Sheet Reserves
After Discount
33 ---------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
- -------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior.... X X X X 1,884 164
2. 1992..... 2,535 300
3. 1993..... 1,802 555
- -------------------------------------------------------------------
4. Totals... X X X X 6,221 1,019
</TABLE>
*Net = (25 - 26) = (11 + 23)
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH
(000 omitted)
<TABLE>
<CAPTION>
1 Premiums Earned Loss and Loss Expense Payments
-------------------------------- ----------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were ------------------------- -----------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... X X X X X X X X X X X X
2. 1992..... 29 2 27 8 1
3. 1993..... 29 3 26 20
- ---------------------------------------------------------------------------------------------------------------
4. Totals .. X X X X X X X X X X X X 28 1
</TABLE>
<TABLE>
<CAPTION>
Loss and Loss Expense Payments
1 -----------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ... X X X X
2. 1992..... 1 10 X X X X
3. 1993..... 2 22 X X X X
- -----------------------------------------------------------------------------------
4. Totals .. 3 32 X X X X
</TABLE>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years. Report
loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------- --------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
--------------------- ------------------------- --------------------- ----------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... 1
2. 1992..... 1
3. 1993..... 5
- ---------------------------------------------------------------------------------------------------------------------------
4. Totals... 1 6
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Paid Outstanding -
Subscription Expense (5 - 6 + 7 Direct and
Received Payment - 8 + 10) Assumed
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.... 3 4 1
2. 1992..... 1
3. 1993..... 5
- ---------------------------------------------------------------------------------------------------------------------------
4. Totals... 3 10 1
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
---------------------------------- -------------------------------------- --------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net * and Assumed Ceded Net Loss Expense
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... X X X X X X X X X X X X X X X X X X X X X X X X
2. 1992..... 11 11 37.9 10.7
3. 1993..... 27 27 93.1 103.8
- ---------------------------------------------------------------------------------------------------------------------------
4. Totals... X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
*Net = (25 - 26) = (11 + 23)
<TABLE>
<CAPTION>
Net Balance Sheet Reserves
After Discount
33 ---------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
- ----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior.... X X X X 1 3
2. 1992..... 1
3. 1993..... 5
- ----------------------------------------------------------------
4. Totals... X X X X 1 9
</TABLE>
*Net = (25 - 26) = (11 + 23)
<PAGE> 15
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 1M - INTERNATIONAL
(000 omitted)
<TABLE>
<CAPTION>
Loss and Loss Expense Payments
--------------------------------------
Premiums Earned
------------------------ Allocated Loss
1 Loss Payments Expense Payments
Years ------------- ----------------
in Which 9
Premiums Were 2 3 4 5 6 7 8 Salvage
Earned and Direct Direct and
Losses Were and Net and Direct Subrogation
Incurred Assumed Ceded (2 - 3) Assumed Ceded and Assumed Ceded Received
------------ ------- ----- ------- ------- ----- ----------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior. . . . X X X X X X X X X X X X
2. 1984 . . . .
3. 1985 . . . .
4. 1986 . . . .
5. 1987 . . . .
6. 1988 . . . . NONE
7. 1989 . . . .
8. 1990 . . . .
9. 1991 . . . .
10. 1992 . . . .
11. 1993 . . . .
------------- ------- ------ ------ ------ ------ -------- ------ -------
12. Totals . . . X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
12
10 11 Number of
Unallocated Total Claims
Loss Net Paid Reported -
Expense (5 - 6 + 7 Direct and
Payments - 8 + 10) Assumed
------------- ----------- ----------- ----------
<S> <C> <C> <C>
1. 1984 . . . . X X X X
2. 1984 . . . . X X X X
3. 1985 . . . . X X X X
4. 1986 . . . . X X X X
5. 1987 . . . . X X X X
6. 1988 . . . . X X X X
7. 1989 . . . . X X X X
8. 1990 . . . . X X X X
9. 1991 . . . . X X X X
10. 1992 . . . . X X X X
11. 1993 . . . . X X X X
------------- ----------- -------- -------
12. Totals . . . X X X X
</TABLE>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years.
Report loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
--------------------------------------------- --------------------------------------------------
Case Basis Bulk & IBNR Case Basis Bulk & IBNR
------------------- ---------------------- --------------------- ------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
----------- ----- ----------- ----- ----------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior. . . .
2. 1984 . . . .
3. 1985 . . . .
4. 1986 . . . .
5. 1987 . . . .
6. 1988 . . . . NONE
7. 1989 . . . .
8. 1990 . . . .
9. 1991 . . . .
10. 1992 . . . .
11. 1993 . . . .
------ ------- -------- -------- --------- --------- --------- -----
12. Totals . . .
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding-
Subrogation Expenses and Expenses Direct
Anticipated Unpaid Unpaid and Assumed
----------- -------- ----------- -----------
<S> <C> <C> <C> <C>
1. Prior. . . .
2. 1984 . . . .
3. 1985 . . . .
4. 1986 . . . .
5. 1987 . . . .
6. 1988 . . . .
7. 1989 . . . .
8. 1990 . . . .
9. 1991 . . . .
10. 1992 . . . .
11. 1993 . . . .
- ----------------- ----------- -------- ----------- -----------
12. Totals . . .
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
---------------------- ------------------------------- -----------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net* and Assumed Ceded Net Loss Expense
----------- ----- ----- ----------- ----- --- ---- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior. . . . X X X X X X X X X X X X X X X X X X X X X X X X
2. 1984 . . . .
3. 1985 . . . .
4. 1986 . . . .
5. 1987 . . . .
6. 1988 . . . .
7. 1989 . . . . NONE
8. 1990 . . . .
9. 1991 . . . .
10. 1992 . . . .
11. 1993 . . . .
------------- --------- -------- ------- --------- ------- ------- ----- ------
12. Totals . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Net Balance Sheet Reserves
After Discount
-------------------------
33 34 35
Inter-Company
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
------------- ------ --------
<S> <C> <C> <C>
1. Prior. . . . X X X X
2. 1984 . . . .
3. 1985 . . . .
4. 1986 . . . .
5. 1987 . . . .
6. 1988 . . . .
7. 1989 . . . .
8. 1990 . . . .
9. 1991 . . . .
10. 1992 . . . .
11. 1993 . . . .
------------- --------- --------- --------
12. Totals . . . X X X X
</TABLE>
*Net = (25-26) = (11+23)
<PAGE> 16
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 1N - REINSURANCE A
(000 omitted)
<TABLE>
<CAPTION>
Premiums Earned Loss and Loss Expense Payments
--------------- ------------------------------
1 Loss Payments Allocated Loss
Years ------------- Expense Payments
in Which ---------------- 9
Premiums Were 2 3 4 5 6 Salvage
Earned and Direct 7 8 and
Losses Were and Net Direct Direct Subrogation
Incurred Assumed Ceded (2 - 3) and Assumed Ceded and Assumed Ceded Received
------------ ------- ----- ------- ----------- ----- ----------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 . . . .
2. 1989 . . . .
3. 1990 . . . .
4. 1991 . . . . NONE
5. 1992 . . . .
6. 1993 . . . .
--------- ------- ------- ------- ---------- ------ -------- ------- ---------
7. Totals . . . X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
10 11 12
Number of
Unallocated Total Claims
Loss Net Paid Reported -
Expense (5 - 6 + 7) Direct and
Payments - 8 + 10 Assumed
----------- ----------- ----------
<S> <C> <C> <C>
1. 1988 . . . . X X X X
2. 1989 . . . . X X X X
3. 1990 . . . . X X X X
4. 1991 . . . . X X X X
5. 1992 . . . . X X X X
6. 1993 . . . . X X X X
--------- -------- ----------- -------
7. Totals . . . X X X X
</TABLE>
NOTE: Report cumulative amounts paid or received for specific years. Report
loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
------------- ------------------------------
Case Basis Bulk & IBNR Case Basis Bulk & IBNR
---------- ----------- ---------- -----------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
----------- ----- ----------- ----- ----------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 . . . .
2. 1989 . . . .
3. 1990 . . . .
4. 1991 . . . . NONE
5. 1992 . . . .
6. 1993 . . . .
----------- ----- ---------- ----- ----------- ----- ----------- -----
7. Totals . . .
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding-
Subrogation Expenses and Expenses Direct
Anticipated Unpaid Unpaid and Assumed
----------- -------- ------------ ------------
<S> <C> <C> <C> <C>
1. 1988 . . . . X X X X
2. 1989 . . . . X X X X
3. 1990 . . . . X X X X
4. 1991 . . . . X X X X
5. 1992 . . . . X X X X
6. 1993 . . . . X X X X
----------- -------- ----------- -------
7. Totals . . . X X X X
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
---------------------- -------------------------------- -----------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net* and Assumed Ceded Net Loss Expense
----------- ----- ---- ----------- ----- --- ---- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 . . . .
2. 1989 . . . .
3. 1990 . . . .
4. 1991 . . . . NONE
5. 1992 . . . .
6. 1993 . . . .
---------- ------- ------- ------- ------- ----- ------ ----- ------
7. Total . . . X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Net Balance Sheet Reserves
After Discount
-------------------------
33 34 35
Inter-Company
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
------------- ------ -------
<S> <C> <C> <C>
1. 1988 . . . .
2. 1989 . . . .
3. 1990 . . . .
4. 1991 . . . .
5. 1992 . . . .
6. 1993 . . . . ------- ------ ------
---------- X X X X
7. Total . . .
</TABLE>
*Net = (25-26) = (11+23)
SCHEDULE P - PART 10 - REINSURANCE B
(000 Omitted)
<TABLE>
<CAPTION>
Premiums Earned Loss and Loss Expense Payments
--------------- ------------------------------
1 Loss Payments Allocated Loss
Years ------------- Expense Payments
in Which ---------------- 9
Premiums Were 2 3 4 Salvage
Earned and Direct 5 6 7 8 and
Losses Were and Net Direct Direct Subrogation
Incurred Assumed Ceded (2 - 3) and Assumed Ceded and Assumed Ceded Received
- ------------- ------- ----- ------- ----------- ----- ----------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 . . . .
2. 1989 . . . .
3. 1990 . . . .
4. 1991 . . . . NONE
5. 1992 . . . .
6. 1993 . . . .
---------- ------- ------- ------- ------- ----- ------- ------ -------
7. Totals . . . X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
10 11 12
Number of
Unallocated Total Claims
Loss Net Paid Reported -
Expense (5 - 6 + 7) Direct and
Payments - 8 + 10 Assumed
----------- ----------- ----------
<S> <C> <C> <C>
1. 1988 . . . . X X X X
2. 1989 . . . . X X X X
3. 1990 . . . . X X X X
4. 1991 . . . . X X X X
5. 1992 . . . . X X X X
6. 1993 . . . . X X X X
---------- ------- ------ -------
7. Totals . . . X X X X
</TABLE>
Note: Report cumulative amounts paid or received for specific years.
Report loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
------------- ------------------------------
Case Basis Bulk & IBNR Case Basis Bulk & IBNR
---------- ----------- ---------- -----------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
----------- ----- ----------- ----- ----------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 . . . .
2. 1989 . . . .
3. 1990 . . . .
4. 1991 . . . . NONE
5. 1992 . . . .
6. 1993 . . . .
-------------- ---------- ----- -------- ----- -------- ------ ------- ----
7. Totals . . .
</TABLE>
<TABLE>
<CAPTION>
24
21 22 23 Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding-
Subrogation Expense and Expenses Direct
Anticipated Unpaid Unpaid and Assumed
----------- -------- ------------ ------------
<S> <C> <C> <C> <C>
1. 1988 . . . . X X X X
2. 1989 . . . . X X X X
3. 1990 . . . . X X X X
4. 1991 . . . . X X X X
5. 1992 . . . . X X X X
6. 1993 . . . . X X X X
------------- -------- -------- -------- -------
7. Totals . . . X X X X
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
---------------------- -------------------------------- ------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net* and Assumed Ceded Net Loss Expense
----------- ----- ---- ----------- ----- --- ---- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 . . . .
2. 1989 . . . .
3. 1990 . . . .
4. 1991 . . . . NONE
5. 1992 . . . .
6. 1993 . . . .
---------- ------- ------- ------- ------- ------ ----- ----- ------
7. Totals . . . X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Net Balance Sheet Reserves
After Discount
--------------------------
33
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
------------- ------ --------
<S> <S> <C> <C>
1. 1988 . . . .
2. 1989 . . . .
3. 1990 . . . .
4. 1991 . . . .
5. 1992 . . . .
6. 1993 . . . .
---------- ------- ------ ------
7. Totals . . . X X X X
</TABLE>
*Net = (25 - 26) = (11 + 23)
<PAGE> 17
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PAR 1P - REINSURANCE C
(000 omitted)
<TABLE>
<CAPTION>
1 Premiums Earned Loss and Loss Expense Payments
--------------- ------------------------------
Years Loss Payments Allocated Loss
in Which 2 3 4 -------------- Expense Payments 9
Premiums Were ----------------- Salvage
Earned and Direct 5 6 7 8 and
Losses Were and Net Direct Direct Subrogationd
Incurred Assumed Ceded (2 - 3) and Assumed Ceded and Assumed Ceded Received
------------ ------- ----- ------- ----------- ----- ----------- ----- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 . . . .
2. 1989 . . . .
3. 1990 . . . .
4. 1991 . . . . NONE
5. 1992 . . . .
6. 1993 . . . .
------- ------- ------- ------- ----- ----- ----- ------
7. Totals . . . X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
1 10 11 12
Years
Which Number of
Premiums Were Unallocated Total Claims
Earned and Loss Net Paid Reported -
Losses Were Expense (5 - 6 + 7 Direct and
Incorrect Payments - 8 + 10) Assumed
- ------------------ ----------- ----------- ----------
<S> <C> <C> <C>
1. 1988 . . . . X X X X
2. 1989 . . . . X X X X
3. 1990 . . . . X X X X
4. 1991 . . . . X X X X
5. 1992 . . . . X X X X
6. 1993 . . . . X X X X
------- ------- -------
7. Totals . . . X X X X
</TABLE>
Note: Report cumulative amounts paid or received for specific years.
Report loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Upheld Allocated Loss Expenses Unpaid
------------- ------------------------------
Case Basis Bulk & IBMR Case Basis Bulk & IMBR
---------- ----------- ---------- -----------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
----------- ----- ----------- ----- ----------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 . . . .
2. 1989 . . . .
3. 1990 . . . .
4. 1991 . . . . NONE
5. 1992 . . . .
6. 1993 . . . .
------- ------ --------- ---- ------ ----- ------ -----
7. Totals . . .
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding
Subrogation Expenses and Expenses Direct
Anticipated Unpaid Unpaid and Assumed
----------- -------- ----------- ------------
<S> <C> <C> <C> <C>
1. 1988 . . . . X X X X
2. 1989 . . . . X X X X
3. 1990 . . . . X X X X
4. 1991 . . . . X X X X
5. 1992 . . . . X X X X
6. 1993 . . . . X X X X
------- ------ -------- -------
7. Totals . . . X X X X
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
---------------------- -------------------------------- -----------------
25 28 32
Direct 26 27 Direct 29 30 31 Loss
and Assumed Ceded Net* and Assumed Ceded Net Loss Expense
----------- ----- ---- ----------- ----- --- ---- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 . . . .
2. 1989 . . . .
3. 1990 . . . .
4. 1991 . . . . NONE
5. 1992 . . . .
6. 1993 . . . .
-------- ------- ------- ------ ------ ------ ----- ------
7 . Totals . . . X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Net Balance Sheet Reserves
After Discount
-------------------------
33 34 35
Inter-Company
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
------------- ------ --------
<C> <C> <C>
1. 1988 . . . .
2. 1989 . . . .
3. 1990 . . . .
4. 1991 . . . .
5. 1992 . . . .
6. 1993 . . . .
------- ----- ------
X X X X
</TABLE>
*Net = (25 - 26) = (11 + 23)
SCHEDULE P - PART 1Q - REINSURANCE D
(000 Omitted)
<TABLE>
<CAPTION>
1 Premiums Earned Loss and Loss Expense Payments
--------------- ------------------------------
Years Loss Payments Allocated Loss 9
in Which 2 3 4 ------------- Expense Payments
Premiums Were ---------------- Salvage
Earned and Direct 5 6 7 8 and
Losses Were and Net Direct Direct Subrogation
Incurred Assumed Ceded (2 - 3) and Assumed Ceded and Assumed Ceded Received
------------- ------- ----- ------- ----------- ----- ----------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior. . . . X X X X X X X X X X X X
2. 1984 . . . . 4,553 4,553 2,859
3. 1985 . . . . 2,173 2,173 728
4. 1986 . . . . 2,005 2,005 110
5. 1987 . . . . 7,140 7,140 740
------- ------- ------- ----- ------ ---------- ------ ------------
6. Totals . . . X X X X X X X X X X X X 4,437
</TABLE>
<TABLE>
<CAPTION>
1 Loss and Loss Expense Payments
------------------------------
Years 10 11 12
Which Number of
Premiums Were Unallocated Total Claims
Earned and Loss Net Paid Reported -
Losses Were Expense (5 - 6 + 7 Direct and
Incurred Payments - 8 + 10) Assumed
- ---------------- ---------- ----------- ----------
<S> <C> <C> <C>
1. 1988 . . . . X X X X
2. 1989 . . . . 2,859 X X X X
3. 1990 . . . . 728 X X X X
4. 1991 . . . . 110 X X X X
5. 1992 . . . . 740 X X X X
-------- ----- -------
6. Totals . . . 4,437 X X X X
</TABLE>
Note: Report cumulative amounts paid or received for specific years.
Report loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Upheld Allocated Loss Expenses Unpaid
------------- ------------------------------
Case Basis Bulk & IBMR Case Basis Bulk & IMBR
---------- ----------- ---------- -----------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
----------- ----- ----------- ----- ----------- ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior. . . .
2. 1984 . . . .
3. 1985 . . . . NONE
4. 1986 . . . .
5. 1987 . . . .
------------ ------ ---------- ----- -------- ----- ----------- -------
6. Totals . . .
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding
Subrogation Expenses and Expenses Direct
Anticipated Unpaid Unpaid and Assumed
----------- -------- ----------- ------------
<S> <C> <C> <C> <C>
1. Prior . . . X X X X
2. 1984 . . . . X X X X
3. 1985 . . . . X X X X
4. 1986 . . . . X X X X
5. 1987 . . . . X X X X
---------- -------- -------- -------
6. Totals . . . X X X X
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
---------------------- -------------------------------- -----------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net* and Assumed Ceded Net Loss Expense
----------- ----- ---- ----------- ----- --- ---- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior. . . . X X X X X X X X X X X X X X X X X X X X X X X X
2. 1984 . . . . 2,859 2,859 62.8 62.8
3. 1985 . . . . 728 728 33.5 33.5
4. 1986 . . . . 110 110 5.5 5.5
5. 1987 . . . . 740 740 10.4 10.4
------- ------- ------- ------- ------- ------- ----- --------
6. Totals . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Net Balance Sheet Reserves
33 After Discount
-------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
------------- ------ --------
<S> <C> <C> <C>
1. Prior . . .
2. 1984 . . . .
3. 1985 . . . .
4. 1986 . . . .
5. 1987 . . . .
------- ------ --------
6. Totals . . . X X X X
</TABLE>
*Net = (25 - 26) = (11 + 23)
<PAGE> 18
FORM 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
(000 omitted)
<TABLE>
<CAPTION>
Premiums Earned Loss and Loss Expense Payments
1 ----------------------------------- ------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were ----------------------- -----------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2-3) Direct Ceded Direct
Incurred Assumed and Assumed and Assumed Ceded
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . XXXX XXXX XXXX 5 99
2. 1984 . . . 4,599 177 4,422 2,212 871
3. 1985 . . . 7,607 364 7,243 2,126 1,313
4. 1986 . . . 12,483 866 11,617 3,518 1,605
5. 1987 . . . 16,857 1,492 15,365 3,777 2,749
6. 1988 . . . 21,725 2,009 19,716 4,222 2,472
7. 1989 . . . 24,408 2,108 22,300 3,915 1,768
8. 1990 . . . 26,059 2,253 23,806 2,422 1,345
9. 1991 . . . 24,922 2,151 22,771 1,429 1,055
10. 1992 . . . 23,774 2,051 21,723 2,396 2 424
11. 1993 . . . 29,910 2,420 23,490 193 14 11 3
-------------------------------------------------------------------------------------------------------------------
12. Totals . . XXXX XXXX XXXX 26,225 16 13,712 3
</TABLE>
<TABLE>
<CAPTION>
Loss and Loss Expense Payments
1 ---------------------------------------------- 12
9 10 11
Years
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (6 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior . . . 104 XXXX
2. 1984 . . . 959 4,042 16
3. 1985 . . . 1,071 4,510 60
4. 1986 . . . 8 1,377 6,500 90
5. 1987 . . . 1,643 8,169 186
6. 1988 . . . 6 1,345 8,039 300
7. 1989 . . . 14 1,398 7,081 387
8. 1990 . . . 20 1,372 5,139 538
9. 1991 . . . 3 227 2,721 469
10. 1992 . . . 8 305 3,123 371
11. 1993 . . . 205 392 243
-------------------------------------------------------------------------------------
12. Totals . . 59 9,902 49,820 XXXX
</TABLE>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years. Report
loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
------------------------------------------- -------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
-------------------- ------------------- -------------------- --------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . . . 318
2. 1984 . . . . . 1 83
3. 1985 . . . . . 642 100
4. 1986 . . . . . 662 340 405
5. 1987 . . . . . 2,030 1,472 875
6. 1988 . . . . . 2,340 2,027 1,309
7. 1989 . . . . . 1,645 5,807 1,728
8. 1990 . . . . . 2,344 8,988 2,148
9. 1991 . . . . . 2,932 8,958 3,032 5
10. 1992 . . . . . 2,094 42 8,221 6 4,494 18 1 1
11. 1993 . . . . . 1,525 122 14,922 23 9,050 37 4 4
-----------------------------------------------------------------------------------------------------------------
12. Totals . . . . 16,533 164 50,735 29 23,224 60 5 5
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding-
Subrogation Expenses and Expenses Direct
Anticipated Unpaid Unpaid and Assumed
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior . . . . . 2 320 13
2. 1984 . . . . . 84 3
3. 1985 . . . . . 5 747 9
4. 1986 . . . . . 7 1,414 16
5. 1987 . . . . . 26 4,403 40
6. 1988 . . . . . 33 5,709 46
7. 1989 . . . . . 56 9,236 48
8. 1990 . . . . . 85 13,565 87
9. 1991 . . . . . 89 15,006 81
10. 1992 . . . . . 63 14,806 75
11. 1993 . . . . . 133 25,448 64
----------------------------------------------------------------------------------------------
12. Totals . . . . 499 90,738 482
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
----------------------------- ------------------------------- ----------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net * and Assumed Ceded Net Loss Expense
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . . . XXXX XXXX XXXX XXXX XXXX XXXX
2. 1984 . . . . . 4,126 4,126 89.7 93.3
3. 1985 . . . . . 5,257 5,257 69.1 72.6
4. 1986 . . . . . 7,914 7,914 63.4 68.1
5. 1987 . . . . . 12,572 12,572 74.6 81.8
6. 1988 . . . . . 13,748 13,748 63.3 69.7
7. 1989 . . . . . 16,317 16,317 66.9 73.2
8. 1990 . . . . . 18,704 18,704 71.8 78.6
9. 1991 . . . . . 17,732 5 17,727 71.1 0.2 77.8
10. 1992 . . . . . 17,998 69 17,929 75.7 3.4 82.5
11. 1993 . . . . . 26,043 203 25,840 100.5 8.4 110.0
------------------------------------------------------------------------------------------------------------
12. Totals . . . . XXXX XXXX XXXX XXXX XXXX XXXX
</TABLE>
<TABLE>
<CAPTION>
Net Balance Sheet Reserves
After Discount
33 -----------------------------
Inter Company 34 35
Pooling
Participation Losses Loss Expenses
Percentage Unpaid Unpaid
-------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior . . . . . XXXX 318 2
2. 1984 . . . . . 1 83
3. 1985 . . . . . 642 105
4. 1986 . . . . . 1,002 412
5. 1987 . . . . . 3,502 901
6. 1988 . . . . . 4,367 1,342
7. 1989 . . . . . 7,452 1,784
8. 1990 . . . . . 11,332 2,233
9. 1991 . . . . . 11,890 3,116
10. 1992 . . . . . 10,267 4,539
11. 1993 . . . . . 16,302 9,146
-------------------------------------------------------------------------------
12. Totals . . . . XXXX 67,075 23,663
</TABLE>
*Net - (25 - 26) = (11 + 23)
<PAGE> 19
FORM 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
(000 omitted)
<TABLE>
<CAPTION>
Premiums Earned Loss and Loss Expense Payments
1 ----------------------------------- ------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were ----------------------- -----------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2-3) Direct Ceded Direct
Incurred Assumed and Assumed and Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . XXXX XXXX XXXX
2. 1984 . . .
3. 1985 . . .
4. 1986 . . .
5. 1987 . . .
6. 1988 . . .
7. 1989 . . .
8. 1990 . . .
9. 1991 . . .
10. 1992 . . .
11. 1993 . . .
- --------------------------------------------------------------------------------------------------------------------
12. Totals . . XXXX XXXX XXXX
</TABLE>
<TABLE>
<CAPTION>
Loss and Loss Expense Payments
1 ---------------------------------------------- 12
9 10 11
Years
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported-
Losses Were Subrogation Expense (6-6+7 Direct and
Incurred Received Payments -8+10) Assumed
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior . . . XXXX
2. 1984 . . .
3. 1985 . . .
4. 1986 . . .
5. 1987 . . .
6. 1988 . . . NONE
7. 1989 . . .
8. 1990 . . .
9. 1991 . . .
10. 1992 . . .
11. 1993 . . .
- --------------------------------------------------------------------------------------
12. Totals . . XXXX
</TABLE>
Note: For "prior," report amounts paid or received in current year only,
Report cumulative amounts paid or received for specific years. Report
loss payments net of salvage and subrogation received.
<TABLE>
<CAPTION>
Losses Unpaid Allocated Loss Expenses Unpaid
--------------------------------------- -------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
---------------- ------------------- -------------------- --------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . . .
2. 1984 . . . . .
3. 1985 . . . . .
4. 1986 . . . . .
5. 1987 . . . . .
6. 1988 . . . . .
7. 1989 . . . . .
8. 1990 . . . . .
9. 1991 . . . . .
10. 1992 . . . . .
11. 1993 . . . . .
- --------------------------------------------------------------------------------------------------------------
12. Totals . . . .
</TABLE>
<TABLE>
<CAPTION>
21 22 23 24
Number of
Salvage Unallocated Total Claims
and loss Net Losses Outstanding-
Subrogation Expenses and Expenses Direct
Anticipated Unpaid Unpaid and Assumed
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior . . . . .
2. 1984 . . . . .
3. 1985 . . . . .
4. 1986 . . . . .
5. 1987 . . . . .
6. 1988 . . . . . NONE
7. 1989 . . . . .
8. 1990 . . . . .
9. 1991 . . . . .
10. 1992 . . . . .
11. 1993 . . . . .
- -----------------------------------------------------------------------------------------------
12. Totals . . . .
</TABLE>
<TABLE>
<CAPTION>
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
----------------------------- -------------------------------- ---------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net * and Assumed Ceded Net Loss Expense
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . . . XXXX XXXX XXXX XXXX XXXX XXXX
2. 1984 . . . . .
3. 1985 . . . . .
4. 1986 . . . . .
5. 1987 . . . . .
6. 1988 . . . . .
7. 1989 . . . . .
8. 1990 . . . . .
9. 1991 . . . . .
10. 1992 . . . . .
11. 1993 . . . . .
- ------------------------------------------------------------------------------------------------------------
12. Totals . . . . XXXX XXXX XXXX XXXX XXXX XXXX
</TABLE>
<TABLE>
<CAPTION>
Net Balance Sheet Reserves
After Discount
33 -----------------------------
Inter Company 34 35
Pooling
Participation Losses Loss Expenses
Percentage Unpaid Unpaid
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior . . . . . XXXX
2. 1984 . . . . .
3. 1985 . . . . .
4. 1986 . . . . .
5. 1987 . . . . .
6. 1988 . . . . . NONE
7. 1989 . . . . .
8. 1990 . . . . .
9. 1991 . . . . .
10. 1992 . . . . .
11. 1993 . . . . .
- --------------------------------------------------------------------------------
12. Totals . . . . XXXX
</TABLE>
*Net - (25 - 26) = (11 + 23)
<PAGE> 20
Form 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE - PART 2a - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
1 Incurred Losses and Allocated Expenses Reported at Year End (000 omitted) Development**
Years in Which ------------------------------------------------------------------------------------------------ -------------
Losses Were 2 3 4 5 6 7 8 9 10 11 12 13
Incurred 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 One Year Two Year
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... 5,170* 4,753 4,101 4,049 3,622 3,427 3,413 3,467 3,616 3,699 83 232
2. 1984..... 41,637 39,193 39,789 39,238 38,894 38,841 38,495 38,472 38,578 38,572 (6) 100
3. 1985..... XXXX 54,696 63,512 54,033 53,026 52,865 52,382 52,352 52,191 52,217 26 (135)
4. 1986..... XXXX XXXX 47,085 45,599 44,861 644,755 44,031 43,702 43,412 43,365 (47) (337)
5. 1987..... XXXX XXXX XXXX 49,316 44,824 43,705 43,038 42,754 42,513 42,371 (142) (383)
6. 1988..... XXXX XXXX XXXX XXXX 50,817 45,007 43,699 43,317 42,406 41,715 (691) (1,602)
7. 1989..... XXXX XXXX XXXX XXXX XXXX 68,106 62,076 61,913 60,850 59,209 (1,641) (2,704)
8. 1990..... XXXX XXXX XXXX XXXX XXXX XXXX 66,665 62,846 61,685 60,550 (1,135) (2,296)
9. 1991..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX 65,514 62,025 60,088 (1,937) (5,426)
10. 1992..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 63,892 63,332 (560) XXXX
11. 1993..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 71,361 XXXX XXXX
------ -------
12. Totals (6,050) (12,551)
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Prior.... 24,450* 27,458 27,209 28,868 27,094 26,056 26,215 26,470 26,484 26,453 (31) (17)
2. 1984..... 52,694 58,272 63,054 65,295 65,366 64,925 64,206 64,297 63,805 63,729 (76) (568)
3. 1985..... XXXX 65,242 77,584 83,869 83,100 82,092 81,128 81,104 80,204 80,266 62 (838)
4. 1986..... XXXX XXXX 70,737 76,052 79,919 78,564 74,819 74,158 73,587 72,872 (715) (1,286)
5. 1987..... XXXX XXXX XXXX 86,580 81,619 81,718 77,985 75,337 73,831 73,644 (187) (1,693)
6. 1988..... XXXX XXXX XXXX XXXX 87,398 84,918 80,632 77,924 74,190 72,593 (1,597) (5,331)
7. 1989..... XXXX XXXX XXXX XXXX XXXX 93,436 89,295 84,276 79,537 76,268 (3,269) (8,008)
8. 1990..... XXXX XXXX XXXX XXXX XXXX XXXX 108,513 108,039 101,694 95,245 (6,449) (12,794)
9. 1991..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX 104,620 102,770 94,251 (8,519) (10,369)
10. 1992..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 112,984 101,928 (11,056) XXXX
11. 1993..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 107,335 XXXX XXXX
------- -------
12. Totals (31,837) (40,904)
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... 9,692* 9,945 11,593 10,430 11,621 10,374 9,790 9,523 10,326 10,265 (61) 742
2. 1984..... 17,241 16,746 17,179 16,924 16,386 16,458 16,989 15,997 15,816 15,818 2 (179)
3. 1985..... XXXX 22,369 25,626 26,517 25,421 26,212 25,400 24,873 24,805 24,669 (136) (204)
4. 1986..... XXXX XXXX 29,226 32,861 33,816 36,659 37,502 36,130 36,315 35,577 (738) (553)
5. 1987..... XXXX XXXX XXXX 35,043 35,200 34,241 34,252 33,119 32,783 32,443 (340) (676)
6. 1988..... XXXX XXXX XXXX XXXX 39,472 44,829 46,879 46,465 45,329 43,471 (1,858) (2,994)
7. 1989..... XXXX XXXX XXXX XXXX XXXX 43,975 50,094 49,469 46,827 45,371 (1,456) (4,098)
8. 1990..... XXXX XXXX XXXX XXXX XXXX XXXX 55,483 59,821 56,091 51,309 (4,782) (8,512)
9. 1991..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX 49,542 49,519 45,911 (3,608) (3,631)
10. 1992..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 59,210 60,420 1,210 XXXX
11. 1993..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 61,915 XXXX XXXX
------ ------
12. Totals (11,767) (20,105)
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2D - WORKERS' COMPENSATION
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... 6,129* 8,041 11,863 12,691 13,837 14,765 15,244 15,606 15,877 15,889 12 283
2. 1984..... 13,822 20,116 23,828 24,596 24,816 25,893 25,922 26,059 25,716 25,769 53 (290)
3. 1985..... XXXX 24,360 36,148 40,562 41,021 44,238 44,377 44,596 42,956 43,068 112 (1,528)
4. 1986..... XXXX XXXX 35,788 49,875 52,409 57,411 57,276 56,634 55,733 53,889 (1,844) (2,745)
5. 1987..... XXXX XXXX XXXX 55,904 63,039 67,867 67,034 67,264 63,721 62,900 (821) (4,364)
6. 1988..... XXXX XXXX XXXX XXXX 63,294 68,880 68,410 68,256 62,934 63,859 925 (4,397)
7. 1989..... XXXX XXXX XXXX XXXX XXXX 66,477 85,868 86,847 79,741 77,740 (2,001) (9,107)
8. 1990..... XXXX XXXX XXXX XXXX XXXX XXXX 88,481 99,395 95,243 97,927 2,684 (1,468)
9. 1991..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX 96,106 117,205 113,500 (3,705) 17,394
10. 1992..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 143,468 147,986 4,518 XXXX
11. 1993..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 161,684 XXXX XXXX
------ ------
12. Totals (67) (6,222)
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2E - COMMERCIAL MULTIPLE PERIL
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... 23,700* 26,862 27,535 28,200 28,691 27,764 26,934 26,070 27,163 27,562 399 1,492
2. 1984..... 33,501 32,463 37,923 38,415 38,733 38,045 36,302 36,418 35,621 35,529 (92) (889)
3. 1985..... XXXX 50,015 54,221 57,756 56,858 56,356 54,732 53,793 54,840 51,817 (3,023) (1,976)
4. 1986..... XXXX XXXX 68,302 62,988 63,000 65,716 63,025 61,282 61,707 58,503 (3,204) (2,779)
5. 1987..... XXXX XXXX XXXX 73,688 70,796 79,397 77,191 71,444 70,122 67,531 (2,591) (3,913)
6. 1988..... XXXX XXXX XXXX XXXX 72,566 75,938 81,182 76,796 74,579 72,966 (1,613) (3,830)
7. 1989..... XXXX XXXX XXXX XXXX XXXX 95,042 107,927 112,209 111,214 106,776 (4,438) (5,433)
8. 1990..... XXXX XXXX XXXX XXXX XXXX XXXX 91,439 101,129 114,744 110,315 (4,429) 9,186
9. 1991..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX 107,763 118,392 114,090 (4,302) 6,327
10. 1992..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 147,807 149,615 1,808 XXXX
11. 1993..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 178,828 XXXX XXXX
------ ------
12. Totals (21,485) (1,815)
</TABLE>
* Reported reserves only. Subsequent development relates only to subsequent
payments and reserves.
**Current year less first or second prior year, showing (redundant) or adverse.
<PAGE> 21
Form 2
SCHEDULE P - PART 2F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
<TABLE>
<CAPTION>
1 Incurred Losses and Allocated Expenses Reported at Year End (000 omitted) Development**
---------------------------------------------------------------------------------------------------------------
Years in Which
Losses Were 2 3 4 5 6 7 8 9 10 11 12 13
Incurred 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 One Year Two Year
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... 1,032* 1,328 901 1,301 1,133 1,030 1,043 905 1,096 1,061 (35) 156
2. 1984..... 1,298 1,219 1,674 2,047 2,155 2,070 2,048 1,643 1,765 1,545 (220) (98)
3. 1985..... XXXX 1,567 1,307 1,891 2,141 2,101 2,124 1,768 1,805 1,768 (37)
4. 1986..... XXXX XXXX 1,537 1,590 3,432 4,472 3,142 3,274 4,013 2,850 (1,163) (424)
5. 1987..... XXXX XXXX XXXX 1,849 4,154 4,711 3,584 5,386 5,890 4,207 (1,683) (1,179)
6. 1988..... XXXX XXXX XXXX XXXX 3,373 5,207 6,563 5,825 6,842 7,588 746 1,763
7. 1989..... XXXX XXXX XXXX XXXX XXXX 1,648 4,289 4,755 6,797 9,121 2,324 4,366
8. 1990..... XXXX XXXX XXXX XXXX XXXX XXXX 3,126 7,297 8,310 9,984 1,674 2,687
9. 1991..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX 5,769 10,678 11,553 875 5,784
10. 1992..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 15,604 11,695 (3,909) XXXX
11. 1993..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 13,118 XXXX XXXX
------ ------
12. Totals (1,428) 13,055
</TABLE>
SCHEDULE P - PART 2F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... *
2. 1984.....
3. 1985..... XXXX NONE
4. 1986..... XXXX XXXX
5. 1987..... XXXX XXXX XXXX
6. 1988..... XXXX XXXX XXXX XXXX
7. 1989..... XXXX XXXX XXXX XXXX XXXX
8. 1990..... XXXX XXXX XXXX XXXX XXXX XXXX
9. 1991..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX
10. 1992..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX
11. 1993..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX
---- ----
12. Totals
</TABLE>
SCHEDULE P - PART 2G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT
(ALL PERILS), BOILER AND MACHINERY)
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... 60 * 11 14 11 10 10 12 9 10 10 1
2. 1984..... 224 227 224 224 224 224 224 224 224 224
3. 1985..... XXXX 593 509 506 508 513 527 493 495 494 (1) 1
4. 1986..... XXXX XXXX 376 411 448 437 536 537 516 536 20 (1)
5. 1987..... XXXX XXXX XXXX 234 299 268 269 271 265 306 41 35
6. 1988..... XXXX XXXX XXXX XXXX 604 581 582 584 581 598 17 14
7. 1989..... XXXX XXXX XXXX XXXX XXXX 471 468 510 527 582 55 72
8. 1990..... XXXX XXXX XXXX XXXX XXXX XXXX 1,062 1,095 1,106 1,116 10 21
9. 1991..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX 417 484 510 26 93
10. 1992..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 2,312 2,161 (151) XXXX
11. 1993..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 3,367 XXXX XXXX
12. Totals 17 236
</TABLE>
SCHEDULE P - PART 2H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... 8,315* 10,196 10,183 10,770 11,116 13,279 11,743 11,623 11,821 16,789 4,968 5,166
2. 1984..... 12,451 11,863 15,269 17,868 17,008 17,120 17,001 17,182 17,563 17,729 166 547
3. 1985..... XXXX 17,219 13,516 17,215 16,117 20,736 18,187 20,730 18,667 17,963 (704) (2,767)
4. 1986..... XXXX XXXX 20,217 17,619 21,102 27,854 24,000 23,245 22,562 20,726 (1,836) (2,519)
5. 1987..... XXXX XXXX XXXX 25,169 25,518 28,612 27,036 31,811 30,081 33.424 3,343 1,613
6. 1988..... XXXX XXXX XXXX XXXX 28,102 22,623 24,493 27,732 25,968 32,142 6,174 4,410
7. 1989..... XXXX XXXX XXXX XXXX XXXX 16,140 29,618 40,173 34,188 36,129 1,941 (4,044)
8. 1990..... XXXX XXXX XXXX XXXX XXXX XXXX 18,363 39,579 43,015 48,047 5,032 8,468
9. 1991..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX 25,834 30,609 42,872 12,263 17,038
10. 1992..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 31,584 46,937 15,353 XXXX
11. 1993..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 48,770 XXXX XXXX
12. Totals 46,700 27,912
</TABLE>
SCHEDULE P - PART 2H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... *
2. 1984..... 30 570 76 85 38 38 23 23 24 1 1
3. 1985..... XXXX 30 690 1,851 1,028 730 748 647 653 653 6
4. 1986..... XXXX XXXX 2,099 1,106 1,332 2,602 122 97 98 98 1
5. 1987..... XXXX XXXX XXXX 7,426 1,873 4,361 918 356 319 320 1 (36)
6. 1988..... XXXX XXXX XXXX XXXX 9,452 5,956 2,907 2,144 2,019 1,621 (398) (523)
7. 1989..... XXXX XXXX XXXX XXXX XXXX 2,910 5,182 1,009 485 129 (356) (880)
8. 1990..... XXXX XXXX XXXX XXXX XXXX XXXX 8,246 3,816 1,475 463 (1,012) (3,353)
9. 1991..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX 10,474 3,900 364 (3,536) (10,110)
10. 1992..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 10,908 3,726 (7,182) XXXX
11. 1993..... XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 3,652 XXXX XXXX
12. Totals (12,482) (14,894)
</TABLE>
* Reported reserves only, Subsequent development relates only to subsequent
payments and reserves.
**Current year less first or second prior year, showing (redundant) or adverse.
<PAGE> 22
FORM 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
<TABLE>
<CAPTION>
SCHEDULE P - PART 2I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY AND THEFT)
- -------------------------------------------------------------------------------------------------------------------
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9
Losses Were 1984 1985 1986 1987 1988 1989 1990 1991
Incurred
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X 6,892*
2. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
3. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2I- SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY AND THEFT)
Incurred Losses and Allocated
Expenses Reported at Year End
(000 omitted) Development**
- -------------------------------------------------------------------------
1
Years in Which 10 11 12 13
Losses Were 1992 1993 One Year Two Year
Incurred ------------------------------ ---------------------
<S> <C> <C> <C> <C>
1. Prior . . 6,583 8,719 2,136 1,827
2. 1992 . . . 16,665 20,689 4,024 X X X X
3. 1993 . . . X X X X 17,532 X X X X X X X X
--------- ------- -------
4. Totals 6,160 1,827
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2J - AUTO PHYSICAL DAMAGE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X 12,963*
2. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
3. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
1. Prior . . 7,357 6,632 (725) (6,331)
2. 1992 . . . 70,794 70,194 (600) X X X X
3. 1993 . . . X X X X 78,120 X X X X X X X X
--------- --------
4. Totals (1,325) (6,331)
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2K - FIDELITY, SURETY, FINANCIAL GUARANTY, MORTGAGE GUARANTY
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X 7,082*
2. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
3. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
1. Prior . . 3,666 3,315 (351) (3,767)
2. 1992 . . . 3,738 3,562 (176) X X X X
3. 1993 . . . X X X X 3,025 X X X X X X X X
------- -------
4. Totals (527) (3,767)
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X 36*
2. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
3. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
1. Prior . . 16 9 (7) (27)
2. 1992 . . . 11 10 (1) X X X X
3. 1993 . . . X X X X 25 X X X X X X X X
------- -------
4. Totals (8) (27)
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2M - INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . . .
2. 1984 . . . . .
3. 1985 . . . . . X X X X
4. 1986 . . . . . X X X X X X X X N O N E
5. 1987 . . . . . X X X X X X X X X X X X
6. 1988 . . . . . X X X X X X X X X X X X X X X X
7. 1989 . . . . . X X X X X X X X X X X X X X X X X X X X
8. 1990 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
1. Prior . . . . .
2. 1984 . . . . .
3. 1985 . . . . .
4. 1986 . . . . .
5. 1987 . . . . .
6. 1988 . . . . .
7. 1989 . . . . .
8. 1990 . . . . .
9. 1991 . . . . .
10. 1992 . . . . . X X X X
11. 1993 . . . . . X X X X X X X X X X X X
------- -------- --------
12. Totals
</TABLE>
* Reported reserves only. Subsequent development relates only to
subsequent payments and reserves.
** Current year less first or second prior year, showing (redundant) or
adverse.
<PAGE> 23
FORM 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
<TABLE>
<CAPTION>
SCHEDULE P - PART 2N - REINSURANCE A
- -------------------------------------------------------------------------------------------------------------------
1 Incurred Losses and Allocated Expenses Reported at Year End (000 omitted)
------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9
Losses Were 1984 1985 1986 1987 1988 1989 1990 1991
Incurred
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 . . . X X X X X X X X X X X X X X X X
2. 1989 . . . X X X X X X X X X X X X X X X X X X X X N O N E
3. 1990 . . . X X X X X X X X X X X X X X X X X X X X X X X X
4. 1991 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X
5. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
6. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2N - REINSURANCE A
- --------------------------------------------------------------------------
Incurred Losses and Allocated
Expenses Reported at Year End
(000 omitted) Development**
1 ------------------------------ ---------------------
Years in Which 10 11 12 13
Losses Were 1992 1993 One Year Two Year
Incurred
<S> <C> <C> <C> <C>
1. 1988 . . .
2. 1989 . . .
3. 1990 . . .
4. 1991 . . .
5. 1992 . . . X X X X
6. 1993 . . . X X X X X X X X X X X X
------- --------
7. Totals
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2O- REINSURANCE B
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 . . . X X X X X X X X X X X X X X X X
2. 1989 . . . X X X X X X X X X X X X X X X X X X X X N O N E
3. 1990 . . . X X X X X X X X X X X X X X X X X X X X X X X X
4. 1991 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X
5. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
6. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2O- REINSURANCE B
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 1988 . . .
2. 1989 . . .
3. 1990 . . .
4. 1991 . . .
5. 1992 . . . X X X X
6. 1993 . . . X X X X X X X X X X X X
------- --------
7. Totals
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE - PART 2P - REINSURANCE C
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 . . . X X X X X X X X X X X X X X X X
2. 1989 . . . X X X X X X X X X X X X X X X X X X X X N O N E
3. 1990 . . . X X X X X X X X X X X X X X X X X X X X X X X X
4. 1991 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X
5. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
6. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE - PART 2P - REINSURANCE C
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. 1988 . . .
2. 1989 . . .
3. 1990 . . .
4. 1991 . . .
5. 1992 . . . X X X X
6. 1993 . . . X X X X X X X X
------- -------
7. Totals
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE - PART 2Q - REINSURANCE D
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . 2,883 772 3,127 4,145 3,408 2,263 2,263 2,263
2. 1984 . . . 4,970 2,981 2,863 2,913 2,886 2.859 2,859 2,859
3. 1985 . . . X X X X 943 527 788 761 728 728 728
4. 1986 . . . X X X X X X X X 66 749 110 110 110 110
5. 1987 . . . X X X X X X X X X X X X 649 976 740 740 740
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE - PART 2Q - REINSURANCE D
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior . . 1,429 1,429 (834)
2. 1984 . . . 2,859 2,859
3. 1985 . . . 728 728
4. 1986 . . . 110 110
5. 1987 . . . 740 740
6. Totals (834)
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2R - SECTION 1 - PRODUCTS LIABILITY - OCCURENCE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . . . 2,358* 3,057 2,664 2,612 2,534 2,422 2,492 2,659
2. 1984 . . . . . 1,049 2,109 3,395 3,287 3,361 2,884 3,247 3,395
3. 1985 . . . . . X X X X 1,517 2,622 4,490 5,182 4,159 4,240 4,570
4. 1986 . . . . . X X X X X X X X 2,002 3,700 6,457 6,834 6,727 6,994
5. 1987 . . . . . X X X X X X X X X X X X 3,068 6,916 7,634 9,045 9,081
6. 1988 . . . . . X X X X X X X X X X X X X X X X 3,809 6,343 8,102 12,966
7. 1989 . . . . . X X X X X X X X X X X X X X X X X X X X 4,508 8,150 11,047
8. 1990 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X 6,781 11,011
9. 1991 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X 10,619
10. 1992 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
SCHEDULE P - PART 2R - SECTION 1 - PRODUCTS LIABILITY - OCCURENCE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . 2,551 2,830 279 171
2. 1984 . . . . . 3,152 3,167 15 (228)
3. 1985 . . . . . 4,458 4,181 (777) (389)
4. 1986 . . . . . 7,520 6,530 (990) (464)
5. 1987 . . . . . 10,169 10,903 734 1,822
6. 1988 . . . . . 14,266 12,370 (1,896) (596)
7. 1989 . . . . . 11,419 14,863 3,444 3,816
8. 1990 . . . . . 12,752 17,247 4,495 6,236
9. 1991 . . . . . 14,641 17,411 2,770 6,792
10. 1992 . . . . . 17,495 17,561 66 X X X X
11. 1993 . . . . . X X X X 25,502 X X X X X X X X
------- --------
12. Totals 8,640 17,160
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 2R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . . .
2. 1984 . . . . .
3. 1985 . . . . . X X X X
4. 1986 . . . . . X X X X X X X X
5. 1987 . . . . . X X X X X X X X X X X X N O N E
6. 1988 . . . . . X X X X X X X X X X X X X X X X
7. 1989 . . . . . X X X X X X X X X X X X X X X X X X X X
8. 1990 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
SCHEDULE P - PART 2R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior . . . . .
2. 1984 . . . . .
3. 1985 . . . . .
4. 1986 . . . . .
5. 1987 . . . . .
6. 1988 . . . . .
7. 1989 . . . . .
8. 1990 . . . . .
9. 1991 . . . . .
10. 1992 . . . . .
11. 1993 . . . . . X X X X X X X X
------- -------
12. Totals
</TABLE>
* Reported reserves only. Subsequent development relates only to
subsequent payments and reserves.
** Current year less first or second prior year, showing (redundant) or
adverse.
<PAGE> 24
FORM 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 3A - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
1 ----------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9
Losses Were 1984 1985 1986 1987 1988 1989 1990 1991
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . . . 000 1,376 1,802 2,751 3,062 3,087 3,175 3,176
2. 1984 . . . . . 27,629 36,120 37,221 37,694 38,182 38,313 38,316 38,317
3. 1985 . . . . . X X X X 39,608 49,597 50,818 51,183 51,898 51,979 52,096
4. 1986 . . . . . X X X X X X X X 31,199 40,494 41,869 42,487 42,992 43,383
5. 1987 . . . . . X X X X X X X X X X X X 30,879 40,414 41,724 42,076 42,181
6. 1988 . . . . . X X X X X X X X X X X X X X X X 40,791 39,640 40,842 41,394
7. 1989 . . . . . X X X X X X X X X X X X X X X X X X X X 39,455 55,956 57,449
8. 1990 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X 44,888 56,199
9. 1991 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X 43,199
10. 1992 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
SCHEDULE P - PART 3A - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
Cumulative Paid Losses and 12 13
Allocated Expenses at Year Number of Number of
1 End (000 Omitted) Claims Claims
Years in Which -------------------------- Closed Closed
Losses Were 10 11 With Loss Without
Incurred 1992 1993 Payment Loss Payment
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . 3,204 3,300
2. 1984 . . . . . 38,482 38,480 26,906 2,450
3. 1985 . . . . . 52,110 52,134 33,051 3,406
4. 1986 . . . . . 43,205 43,238 25,971 4,868
5. 1987 . . . . . 42,254 42,266 29,114 3,026
6. 1988 . . . . . 41,513 41,220 24,232 3,067
7. 1989 . . . . . 58,347 58,723 27,748 2,735
8. 1990 . . . . . 58,034 58,721 29,141 2,691
9. 1991 . . . . . 54,343 56,515 28,858 2,617
10. 1992 . . . . . 42,177 55,977 27,645 2,214
11. 1993 . . . . . X X X X 50,042 24,904 2,116
</TABLE>
SCHEDULE P - PART 3B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . . . 000 13,553 18,791 23,273 23,702 24,890 25,528 25,767
2. 1984 . . . . . 24,055 40,253 60,969 57,321 60,897 62,498 62,933 63,394
3. 1985 . . . . . X X X X 29,038 51,818 65,477 73,344 77,441 79,046 79,637
4. 1986 . . . . . X X X X X X X X 26,198 44,497 57,215 66,122 70,061 71,095
5. 1987 . . . . . X X X X X X X X X X X X 29,906 46,062 59,783 66,586 70,219
6. 1988 . . . . . X X X X X X X X X X X X X X X X 24,384 43,860 57,182 64,377
7. 1989 . . . . . X X X X X X X X X X X X X X X X X X X X 29,128 50,168 61,763
8. 1990 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X 32,174 56,505
9. 1991 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X 33,467
10. 1992 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
SCHEDULE P - PART 3B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . 25,898 25,884
2. 1984 . . . . . 63,507 63,511 20,148 5,260
3. 1985 . . . . . 79,716 79,843 22,684 5,946
4. 1986 . . . . . 71,580 71,678 21,384 5,277
5. 1987 . . . . . 71,520 71,925 19,722 5,279
6. 1988 . . . . . 68,406 69,756 18,989 5,807
7. 1989 . . . . . 69,052 71,256 19,251 5,770
8. 1990 . . . . . 73,812 84,041 20,115 4,607
9. 1991 . . . . . 55,558 70,836 19,381 3,959
10. 1992 . . . . . 34,444 60,094 20,278 3,293
11. 1993 . . . . . X X X X 35,611 17,170 2,172
</TABLE>
SCHEDULE P - PART 3C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . . . 000 4,481 8,052 8,631 10,160 9,826 9,372 9,057
2. 1984 . . . . . 5,925 9,806 12,472 14,046 14,941 15,041 15,571 15,730
3. 1985 . . . . . X X X X 8,377 14,765 19,079 21,548 22,489 23,435 24,111
4. 1986 . . . . . X X X X X X X X 11,495 19,483 25,361 28,477 32,287 33,624
5. 1987 . . . . . X X X X X X X X X X X X 11,215 19,364 25,323 28,381 30,524
6. 1988 . . . . . X X X X X X X X X X X X X X X X 12,779 22,423 31,084 36,590
7. 1989 . . . . . X X X X X X X X X X X X X X X X X X X X 12,456 23,136 31,396
8. 1990 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X 13,015 25,454
9. 1991 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X 13,991
10. 1992 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
SCHEDULE P - PART 3C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . 9,992 9,985
2. 1984 . . . . . 15,746 15,775 11,333 2,947
3. 1985 . . . . . 24,252 24,282 12,742 3,331
4. 1986 . . . . . 35,059 35,105 11,994 2,938
5. 1987 . . . . . 30,907 31,172 11,045 2,920
6. 1988 . . . . . 39,832 40,982 10,432 3,097
7. 1989 . . . . . 36,731 40,684 9,965 3,106
8. 1990 . . . . . 39,409 44,340 11,203 2,644
9. 1991 . . . . . 24,716 32,509 10,583 2,290
10. 1992 . . . . . 17,958 32,833 11,208 2,159
11. 1993 . . . . . X X X X 20,879 12,080 1,666
</TABLE>
SECTION P - PART 3D - WORKERS' COMPENSATION
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . . . 000 4,018 6,804 8,673 9,747 10,653 11,552 12,142
2. 1984 . . . . . 6,586 13,651 17,818 20,230 21,492 22,434 23,218 23,782
3. 1985 . . . . . X X X X 9,897 21,977 29,244 33,804 36,229 38,215 39,166
4, 1986 . . . . . X X X X X X X X 12,642 27,957 36,641 41,744 45,731 47,019
5. 1987 . . . . . X X X X X X X X X X X X 14,381 32,754 42,901 49,043 52,533
6. 1988 . . . . . X X X X X X X X X X X X X X X X 13,736 32,054 42,513 48,599
7. 1989 . . . . . X X X X X X X X X X X X X X X X X X X X 18,528 41,749 53,644
8. 1990 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X 21,862 48,070
9. 1991 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X 23,773
10. 1992 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
SCHEDULE P - PART 3D - WORKERS' COMPENSATION
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . 12,671 13,213
2. 1984 . . . . . 24,133 24,565 14,705 2,650
3. 1985 . . . . . 40,113 40,791 20,789 3,813
4. 1986 . . . . . 48,375 49,541 22,073 1,701
5. 1987 . . . . . 55,007 56,638 20,778 1,693
6. 1988 . . . . . 52,106 54,437 19,486 2,226
7. 1989 . . . . . 61,666 66,311 22,258 1,638
8. 1990 . . . . . 63,867 73,566 20,347 1,507
9. 1991 . . . . . 55,110 72,271 6,944 721
10. 1992 . . . . . 27,621 66,382 4,940 1,042
11. 1993 . . . . . X X X X 29,778 3,757 930
</TABLE>
SCHEDULE P - PART 3E - COMMERCIAL MULTIPLE PERIL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . . . 000 7,648 12,721 16,481 18,862 20,173 21,291 22,490
2. 1984 . . . . . 17,163 25,013 27,874 30,003 31,956 32,906 33,924 34,256
3. 1985 . . . . . X X X X 23,566 33,516 38,646 44,336 47,625 48,505 50,244
4. 1986 . . . . . X X X X X X X X 30,415 38,278 43,181 48,405 53,023 54,684
5. 1987 . . . . . X X X X X X X X X X X X 32,117 43,862 49,505 54,948 58,664
6. 1988 . . . . . X X X X X X X X X X X X X X X X 33,053 47,220 53,324 58,096
7. 1989 . . . . . X X X X X X X X X X X X X X X X X X X X 49,444 72,451 78,783
8. 1990 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X 47,298 63,787
9. 1991 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X 44,293
10. 1992 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
SCHEDULE P - PART 3E - COMMERCIAL MULTIPLE PERIL
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . 23,318 23,794
2. 1984 . . . . . 34,529 34,779 12,835 2,774
3. 1985 . . . . . 50,408 50,735 15,788 4,095
4. 1986 . . . . . 55,942 56,452 15,359 3,836
5. 1987 . . . . . 61,187 62,813 16,611 4,684
6. 1988 . . . . . 62,716 66,230 15,959 6,068
7. 1989 . . . . . 87,143 93,664 16,589 8,465
8. 1990 . . . . . 73,236 81,688 19,884 5,607
9. 1991 . . . . . 65,277 74,579 20,504 5,620
10. 1992 . . . . . 63,770 89,669 20,750 4,787
11. 1993 . . . . . X X X X 71,358 20,344 4,129
</TABLE>
Note: Net of salvage and subrogation received.
<PAGE> 25
Form 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 3F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which ------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7
Incurred 1984 1985 1986 1987 1988 1989
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . 000 196 445 638 742 778
2. 1984 . . . 132 193 483 742 1,123 1,335
3. 1985 . . . X X X X 12 99 233 915 1,062
4. 1986 . . . X X X X X X X X 31 94 586 1,199
5. 1987 . . . X X X X X X X X X X X X 108 531 938
6. 1988 . . . X X X X X X X X X X X X X X X X 31 240
7. 1989 . . . X X X X X X X X X X X X X X X X X X X X 43
8. 1990 . . . X X X X X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . X X X X X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Cumulative Paid Losses and Allocated
Expenses at Year End (000 omitted) 12 13
---------------------------------------------- Number of Number of
Years in Which Claims Claims
Losses Were 8 9 10 11 Closed Closed
Incurred 1990 1991 1992 1993 With Loss Without Loss
Payment Payment
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . 810 876 870 880
2. 1984 . . . 1,435 1,517 1,568 1,509 8 12
3. 1985 . . . 1,748 1,603 1,605 1,637 19 29
4. 1986 . . . 1,380 1,775 2,072 2,373 33 47
5. 1987 . . . 1,301 3,087 3,461 3,555 35 86
6. 1988 . . . 657 1,926 3,311 3,693 73 144
7. 1989 . . . 192 780 1,819 3,089 87 169
8. 1990 . . . 40 686 1,310 2,685 103 205
9. 1991 . . . X X X X 33 462 1,250 86 221
10. 1992 . . . X X X X X X X X 48 633 57 138
11. 1993 . . . X X X X X X X X X X X X 145 48 42
</TABLE>
SCHEDULE P - PART 3F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which ------------------------------------------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7 8 9 10
Incurred 1984 1985 1986 1987 1988 1989 1990 1991 1992
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . 000
2. 1984 . . .
3. 1985 . . . X X X X
4. 1986 . . . X X X X X X X X
5. 1987 . . . X X X X X X X X X X X X
6. 1988 . . . X X X X X X X X X X X X X X X X
7. 1989 . . . X X X X X X X X X X X X X X X X NONE
8. 1990 . . . X X X X X X X X X X X X X X X X
9. 1991 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
SCHEDULE P - PART 3G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT
(ALL PERILS), BOILER AND MACHINERY)
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which ------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7
Incurred 1984 1985 1986 1987 1988 1989
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . 000 9 9 9 9
2. 1984 . . . 181 224 224 224 224 224
3. 1985 . . . X X X X 322 453 456 458 462
4. 1986 . . . X X X X X X X X 299 410 416 416
5. 1987 . . . X X X X X X X X X X X X 196 261 267
6. 1988 . . . X X X X X X X X X X X X X X X X 369 580
7. 1989 . . . X X X X X X X X X X X X X X X X X X X X 328
8. 1990 . . . X X X X X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . X X X X X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Cumulative Paid Losses and Allocated 12 13
Expenses at Year End (000 omitted) Number of Number of
Years in Which --------------------------------------------- Claims Claims
Losses Were 8 9 10 11 Closed Closed
Incurred 1990 1991 1992 1993 With Loss Without Loss
Payment Payment
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . 10 9 9 9 X X X X X X X X
2. 1984 . . . 224 224 224 224 X X X X X X X X
3. 1985 . . . 469 493 495 494 X X X X X X X X
4. 1986 . . . 530 533 514 536 X X X X X X X X
5. 1987 . . . 268 268 264 306 X X X X X X X X
6. 1988 . . . 581 581 577 598 X X X X X X X X
7. 1989 . . . 467 503 510 573 X X X X X X X X
8. 1990 . . . 617 1,072 1,098 1,114 X X X X X X X X
9. 1991 . . . X X X X 311 464 503 X X X X X X X X
10. 1992 . . . X X X X X X X X 1,103 1,715 X X X X X X X X
11. 1993 . . . X X X X X X X X X X X X 1,640 X X X X X X X X
</TABLE>
SCHEDULE P - PART 3H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which -----------------------------------------------------------------------
Losses Were 2 3 4 5 6 7
Incurred 1984 1985 1986 1987 1988 1989
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . 000 878 4,021 6,187 6,712 7,929
2. 1984 . . . 1,279 4,104 6,243 9,877 10,528 14,976
3. 1985 . . . X X X X 636 2,492 7,337 8,288 10,683
4. 1986 . . . X X X X X X X X 675 3,973 8,866 12,651
5. 1987 . . . X X X X X X X X X X X X 895 3,888 8,650
6. 1988 . . . X X X X X X X X X X X X X X X X 832 6,053
7. 1989 . . . X X X X X X X X X X X X X X X X X X X X 1,239
8. 1990 . . . X X X X X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . X X X X X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Cumulative Paid Losses and Allocated 12 13
Expenses at Year End (000 omitted) Number of Number of
Years in Which --------------------------------------------- Claims Claims
Losses Were 8 9 10 11 Closed Closed
Incurred 1990 1991 1992 1993 With Loss Without Loss
Payment Payment
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . 9,372 9,527 9,631 10,155
2. 1984 . . . 15,829 13,961 15,963 16,515 852 869
3. 1985 . . . 13,648 14,522 19,068 18,032 931 1,124
4. 1986 . . . 15,643 16,781 18,207 20,243 965 1,179
5. 1987 . . . 16,655 19,414 20,983 22,268 992 1,231
6. 1988 . . . 9,749 13,988 16,040 18,796 857 1,150
7. 1989 . . . 8,116 14,562 19,439 22,954 925 1,005
8. 1990 . . . 1,303 6,787 16,443 24,256 1,007 926
9. 1991 . . . X X X X 839 5,398 11,495 916 737
10. 1992 . . . X X X X X X X X 2,868 9,411 926 546
11. 1993 . . . X X X X X X X X X X X X 2,239 768 229
</TABLE>
SCHEDULE P - PART 3H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which -----------------------------------------------------------------------
Losses Were 2 3 4 5 6 7
Incurred 1984 1985 1986 1987 1988 1989
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . 000
2. 1984 . . . 5 11 20 23
3. 1985 . . . X X X X 3 608 635
4. 1986 . . . X X X X X X X X 46 57 97
5. 1987 . . . X X X X X X X X X X X X 1 75 141
6. 1988 . . . X X X X X X X X X X X X X X X X 24 95
7. 1989 . . . X X X X X X X X X X X X X X X X X X X X 11
8. 1990 . . . X X X X X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . X X X X X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Cumulative Paid Losses and Allocated 12 13
Expenses at Year End (000 omitted) Number of Number of
Years in Which ---------------------------------------------- Claims Claims
Losses Were 8 9 10 11 Closed Closed
Incurred 1990 1991 1992 1993 With Loss Without Loss
Payment Payment
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . .
2. 1984 . . . 23 23 23 24 1 5
3. 1985 . . . 643 647 653 653 2 3
4. 1986 . . . 97 97 98 98 3 7
5. 1987 . . . 162 275 289 315 2 5
6. 1988 . . . 254 418 1,093 1,589 2 5
7. 1989 . . . 63 78 82 81 2 3
8. 1990 . . . 18 73 271 273 2 3
9. 1991 . . . X X X X 9 94 121 2 4
10. 1992 . . . X X X X X X X X 5 227 1 5
11. 1993 . . . X X X X X X X X X X X X 1 3
</TABLE>
Note: Net of salvage and subrogation received.
<PAGE> 26
Form 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 3I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY AND THEFT)
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which -------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7
Incurred 1984 1985 1986 1987 1988 1989
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . X X X X X X X X X X X X X X X X X X X X X X X X
2. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X
3. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Cumulative Paid Losses and Allocated Expenses 12 13
at Year End (000 omitted) Number of Number of
Years in Which ---------------------------------------------- Claims Claims
Losses Were 8 9 10 11 Closed Closed
Incurred 1990 1991 1992 1993 With Loss Without Loss
Payment Payment
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . X X X X 000 3,954 6,323 X X X X X X X X
2. 1992 . . . X X X X X X X X 11,512 18,469 X X X X X X X X
3. 1993 . . . X X X X X X X X X X X X 13,204 X X X X X X X X
</TABLE>
SCHEDULE P - PART 3J - AUTO PHYSICAL DAMAGE
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which -----------------------------------------------------------------------
Losses Were 2 3 4 5 6 7
Incurred 1984 1985 1986 1987 1988 1989
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . X X X X X X X X X X X X X X X X X X X X X X X X
2. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X
3. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
12 13
Cumulative Paid Losses and Allocated Expenses Number of Number of
at Year End (000 omitted) Claims Claims
Years in Which -------------------------------------------------- Closed Closed
Losses Were 8 9 10 11 With Loss Without Loss
Incurred 1990 1991 1992 1993 Payment Payment
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . X X X X 000 4,441 3,779 456,476 46,142
2. 1992 . . . X X X X X X X X 61,739 67,831 56,827 3,536
3. 1993 . . . X X X X X X X X X X X X 67,959 52,503 2,846
</TABLE>
SCHEDULE P - PART 3K FIDELITY, SURETY, FINANCIAL GUARANTY, MORTGAGE GUARANTY
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which -------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7
Incurred 1984 1985 1986 1987 1988 1989
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . X X X X X X X X X X X X X X X X X X X X X X X X
2. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X
3. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
12 13
Cumulative Paid Losses and Allocated Expenses Number of Number of
at Year End (000 omitted) Claims Claims
Years in Which ------------------------------------------------- Closed Closed
Losses Were 8 9 10 11 With Loss Without Loss
Incurred 1990 1991 1992 1993 Payment Payment
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . X X X X 000 151 1,313 X X X X X X X X
2. 1992 . . . X X X X X X X X 349 785 X X X X X X X X
3. 1993 . . . X X X X X X X X X X X X 763 X X X X X X X X
</TABLE>
SCHEDULE P - PART 3L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which ------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7
Incurred 1984 1985 1986 1987 1988 1989
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . X X X X X X X X X X X X X X X X X X X X X X X X
2. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X
3. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
12 13
Cumulative Paid Losses and Allocated Expenses Number of Number of
at Year End (000 omitted) Claims Claims
Years in Which --------------------------------------------------- Closed Closed
Losses Were 8 9 10 11 With Loss Without Loss
Incurred 1990 1991 1992 1993 Payment Payment
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . X X X X 000 8 8 X X X X X X X X
2. 1992 . . . X X X X X X X X 9 9 X X X X X X X X
3. 1993 . . . X X X X X X X X X X X X 20 X X X X X X X X
</TABLE>
SCHEDULE P - PART 3M - INTERNATIONAL
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which ------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7
Incurred 1984 1985 1986 1987 1988 1989
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . 000
2. 1984 . . .
3. 1985 . . . X X X X N O N E
4. 1986 . . . X X X X X X X X
5. 1987 . . . X X X X X X X X X X X X
6. 1988 . . . X X X X X X X X X X X X X X X X
7. 1989 . . . X X X X X X X X X X X X X X X X X X X X
8. 1990 . . . X X X X X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . X X X X X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
12 13
Cumulative Paid Losses and Allocated Expenses Number of Number of
at Year End (000 omitted) Claims Claims
Years in Which -------------------------------------------------- Closed Closed
Losses Were 8 9 10 11 With Loss Without Loss
Incurred 1990 1991 1992 1993 Payment Payment
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . X X X X X X X X
2. 1984 . . . X X X X X X X X
3. 1985 . . . X X X X X X X X
4. 1986 . . . X X X X X X X X
5. 1987 . . . X X X X X X X X
6. 1988 . . . X X X X X X X X
7. 1989 . . . X X X X X X X X
8. 1990 . . . X X X X X X X X
9. 1991 . . . X X X X X X X X X X X X
10. 1992 . . . X X X X X X X X X X X X X X X X
11. 1993 . . . X X X X X X X X X X X X X X X X X X X X
</TABLE>
Note: Net of salvage and subrogation received.
<PAGE> 27
Form 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 3N - REINSURANCE A
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which ----------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7
Incurred 1984 1985 1986 1987 1988 1989
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. 1988 . . . X X X X X X X X X X X X X X X X
2. 1989 . . . X X X X X X X X X X X X X X X X
3. 1990 . . . X X X X X X X X X X X X X X X X
4. 1991 . . . X X X X X X X X X X X X X X X X NONE
5. 1992 . . . X X X X X X X X X X X X X X X X
6. 1993 . . . X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Cumulative Paid Losses and Allocated Expenses 12 13
at Year End (000 omitted) Number of Number of
Years in Which --------------------------------------------- Claims Claims
Losses Were 8 9 10 11 Closed Closed
Incurred 1990 1991 1992 1993 With Loss Without Loss
Payment Payment
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. 1988 . . . X X X X X X X X
2. 1989 . . . X X X X X X X X
3. 1990 . . . X X X X X X X X
4. 1991 . . . X X X X X X X X X X X X
5. 1992 . . . X X X X X X X X X X X X X X X X
6. 1993 . . . X X X X X X X X X X X X X X X X X X X X
</TABLE>
SCHEDULE P - PART 3O - REINSURANCE B
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which -----------------------------------------------------------------------
Losses Were 2 3 4 5 6 7
Incurred 1984 1985 1986 1987 1988 1989
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. 1988 . . . X X X X X X X X X X X X X X X X
2. 1989 . . . X X X X X X X X X X X X X X X X
3. 1990 . . . X X X X X X X X X X X X X X X X
4. 1991 . . . X X X X X X X X X X X X X X X X NONE
5. 1992 . . . X X X X X X X X X X X X X X X X
6. 1993 . . . X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Cumulative Paid Losses and Allocated Expenses 12 13
at Year End (000 omitted) Number of Number of
Years in Which --------------------------------------------- Claims Claims
Losses Were 8 9 10 11 Closed Closed
Incurred 1990 1991 1992 1993 With Loss Without Loss
Payment Payment
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. 1988 . . . X X X X X X X X
2. 1989 . . . X X X X X X X X
3. 1990 . . . X X X X X X X X
4. 1991 . . . X X X X X X X X X X X X
5. 1992 . . . X X X X X X X X X X X X X X X X
6. 1993 . . . X X X X X X X X X X X X X X X X X X X X
</TABLE>
SCHEDULE P - PART 3P - REINSURANCE C
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which -----------------------------------------------------------------------
Losses Were 2 3 4 5 6 7
Incurred 1984 1985 1986 1987 1988 1989
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. 1988 . . . X X X X X X X X X X X X X X X X
2. 1989 . . . X X X X X X X X X X X X X X X X
3. 1990 . . . X X X X X X X X X X X X X X X X
4. 1991 . . . X X X X X X X X X X X X X X X X NONE
5. 1992 . . . X X X X X X X X X X X X X X X X
6. 1993 . . . X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Cumulative Paid Losses and Allocated Expenses 12 13
at Year End (000 omitted) Number of Number of
Years in Which ----------------------------------------------- Claims Claims
Losses Were 8 9 10 11 Closed Closed
Incurred 1990 1991 1992 1993 With Loss Without Loss
Payment Payment
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. 1988 . . . X X X X X X X X
2. 1989 . . . X X X X X X X X
3. 1990 . . . X X X X X X X X
4. 1991 . . . X X X X X X X X X X X X
5. 1992 . . . X X X X X X X X X X X X X X X X
6. 1993 . . . X X X X X X X X X X X X X X X X X X X X
</TABLE>
SCHEDULE P - PART 3Q P REINSURANCE D
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which -----------------------------------------------------------------------
Losses Were 2 3 4 5 6 7
Incurred 1984 1985 1986 1987 1988 1989
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . 000 772 (1,189) 1,250 1,423 1,429
2. 1984 . . . 2,538 2,656 2,768 2,853 2,859 2,859
3. 1985 . . . X X X X 361 713 728 728
4. 1986 . . . X X X X X X X X 24 109 110 110
5. 1987 . . . X X X X X X X X X X X X 445 740 740
</TABLE>
<TABLE>
<CAPTION>
Cumulative Paid Losses and Allocated Expenses 12 13
at Year End (000 omitted) Number of Number of
Years in Which --------------------------------------------- Claims Claims
Losses Were 8 9 10 11 Closed Closed
Incurred 1990 1991 1992 1993 With Loss Without Loss
Payment Payment
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . 1,429 1,429 1,429 1,429 X X X X X X X X
2. 1984 . . . 2,859 2,859 2,859 2,859 X X X X X X X X
3. 1985 . . . 728 728 728 728 X X X X X X X X
4. 1986 . . . 110 110 110 110 X X X X X X X X
5. 1987 . . . 740 740 740 740 X X X X X X X X
</TABLE>
SCHEDULE P - PART 3R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which -----------------------------------------------------------------------
Losses Were 2 3 4 5 6 7
Incurred 1984 1985 1986 1987 1988 1989
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
1. Prior . . . 000 804 1,448 1,816 2,022 2,213
2. 1984 . . . 223 457 883 1,815 2,805 2,893
3. 1985 . . . X X X X 219 652 1,411 1,907 2,471
4. 1986 . . . X X X X X X X X 255 762 1,411 3,121
5. 1987 . . . X X X X X X X X X X X X 273 685 2,154
6. 1988 . . . X X X X X X X X X X X X X X X X 389 897
7. 1989 . . . X X X X X X X X X X X X X X X X X X X X 598
8. 1990 . . . X X X X X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . X X X X X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
Cumulative Paid Losses and Allocated Expenses 12 13
at Year End (000 omitted) Number of Number of
Years in Which --------------------------------------------- Claims Claims
Losses Were 8 9 10 11 Closed Closed
Incurred 1990 1991 1992 1993 With Loss Without Loss
Payment Payment
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior . . . 2,267 2,273 2,408 2,512
2. 1984 . . . 3,018 3,054 3,077 3,083 13
3. 1985 . . . 2,828 3,146 3,424 3,439 51
4. 1986 . . . 4,173 4,645 2,055 5,123 74
5. 1987 . . . 3,312 4,543 2,005 6,526 146
6. 1988 . . . 2,383 4,228 5,861 6,694 254
7. 1989 . . . 1,458 2,635 4,623 5,683 339
8. 1990 . . . 629 1,592 2,758 3,767 451
9. 1991 . . . X X X X 264 954 2,494 388
10. 1992 . . . X X X X X X X X 235 2,818 296
11. 1993 . . . X X X X X X X X X X X X 187 179
</TABLE>
SCHEDULE P - PART 3R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
1 Cumulative Paid Losses and Allocated Expenses at Year End (000 omitted)
Years in Which -----------------------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7 8 9 10
Incurred 1984 1985 1986 1987 1988 1989 1990 1991 1992
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior . . . 000
2. 1984 . . .
3. 1985 . . . X X X X
4. 1986 . . . X X X X X X X X
5. 1987 . . . X X X X X X X X X X X X
6. 1988 . . . X X X X X X X X X X X X X X X X
7. 1989 . . . X X X X X X X X X X X X X X X X X X X X
8. 1990 . . . X X X X X X X X X X X X X X X X X X X X X X X X NONE
9. 1991 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
</TABLE>
Note: Net of salvage and subrogation received.
<PAGE> 28
FORM 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
<TABLE>
<CAPTION>
SCHEDULE P - PART 4A - HOMEOWNERS/FARMOWNERS
BULK AND INCURRED BUT NOT REPORTED RESERVES OR LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
1 ------------------------------------------------------------------------------------------------------
Years in Which
Losses Were 2 3 4 5 6
Incurred 1984 1985 1986 1987 1988
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . . 1,425 618
2. 1984 . . . . . . . . . . . 5,852 802 663
3. 1985 . . . . . . . . . . . X X X X 5,957 874 657
4. 1986 . . . . . . . . . . . X X X X X X X X 6,335 830 136
5. 1987 . . . . . . . . . . . X X X X X X X X X X X X 6,210 629
6. 1988 . . . . . . . . . . . X X X X X X X X X X X X X X X X 7,325
7. 1989 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
8. 1990 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4A - HOMEOWNERS/FARMOWNERS
BULK AND INCURRED BUT NOT REPORTED RESERVES OR LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
------------------------------------------------------------------------------------------------------
Years in Which
Losses Were 7 8 9 10 11
Incurred 1989 1990 1991 1992 1993
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . . 37 16
2. 1984 . . . . . . . . . . . 104 16 12
3. 1985 . . . . . . . . . . . 202 43 13
4. 1986 . . . . . . . . . . . 462 52 13 4
5. 1987 . . . . . . . . . . . 435 192 11 18
6. 1988 . . . . . . . . . . . 1,195 279 207 648
7. 1989 . . . . . . . . . . . 8,799 929 433 710
8. 1990 . . . . . . . . . . . X X X X 6,431 994 649
9. 1991 . . . . . . . . . . . X X X X X X X X 6,413 1,232 229
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X 4,886 1,017
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X 2,420
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
---------------------------------------------------------------
2 3 4 5 6
1984 1985 1986 1987 1988
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . . 2,060 1,084 360 30
2. 1984 . . . . . . . . . . . 6,929 1,691 1,115 571 292
3. 1985 . . . . . . . . . . . X X X X 7,764 1,884 1,618 415
4. 1986 . . . . . . . . . . . X X X X X X X X 12,655 2,687 3,014
5. 1987 . . . . . . . . . . . X X X X X X X X X X X X 18,478 7,808
6. 1988 . . . . . . . . . . . X X X X X X X X X X X X X X X X 19,393
7. 1989 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
8. 1990 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
---------------------------------------------------------------
7 8 9 10 11
1989 1990 1991 1992 1993
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . . 163 44
2. 1984 . . . . . . . . . . . 510 49 27
3. 1985 . . . . . . . . . . . 910 383 134 1
4. 1986 . . . . . . . . . . . 2,888 963 409 863 334
5. 1987 . . . . . . . . . . . 5,034 2,501 1,050 315 667
6. 1988 . . . . . . . . . . . 9,769 5,316 2,479 1,460 656
7. 1989 . . . . . . . . . . . 18,746 11,231 5,328 1,830 720
8. 1990 . . . . . . . . . . . X X X X 21,413 12,809 6,021 789
9. 1991 . . . . . . . . . . . X X X X X X X X 22,786 12,220 3,705
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X 23,466 6,690
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X 13,132
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
--------------------------------------------------------------
2 3 4 5 6
1984 1985 1986 1987 1988
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . . 615 291 140 20
2. 1984 . . . . . . . . . . . 2,381 324 385 254 155
3. 1985 . . . . . . . . . . . X X X X 2,381 578 602 194
4. 1986 . . . . . . . . . . . X X X X X X X X 4,424 860 1,594
5. 1987 . . . . . . . . . . . X X X X X X X X X X X X 6,884 4,249
6. 1988 . . . . . . . . . . . X X X X X X X X X X X X X X X X 8,454
7. 1989 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
8. 1990 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
--------------------------------------------------------------
7 8 9 10 11
1989 1990 1991 1992 1993
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . . 76 32
2. 1984 . . . . . . . . . . . 344 36 16
3. 1985 . . . . . . . . . . . 904 215 113
4. 1986 . . . . . . . . . . . 1,963 552 336 807 74
5. 1987 . . . . . . . . . . . 2,166 1,428 587 767 351
6. 1988 . . . . . . . . . . . 5,442 3,103 1,813 1,767 444
7. 1989 . . . . . . . . . . . 7,474 6,705 4,263 2,020 323
8. 1990 . . . . . . . . . . . X X X X 12,484 8,286 4,671 356
9. 1991 . . . . . . . . . . . X X X X X X X X 10,594 6,212 1,411
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X 8,701 1,377
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X 3,521
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4D - WORKERS' COMPENSATION
--------------------------------------------
2 3 4 5 6
1984 1985 1986 1987 1988
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . . 600 500 81
2. 1984 . . . . . . . . . . . 920 700 1,520 1,000 345
3. 1985 . . . . . . . . . . . X X X X 1,520 2,080 2,876 551
4. 1986 . . . . . . . . . . . X X X X X X X X 6,815 3,934 2,476
5. 1987 . . . . . . . . . . . X X X X X X X X X X X X 11,961 6,816
6. 1988 . . . . . . . . . . . X X X X X X X X X X X X X X X X 26,018
7. 1989 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
8. 1990 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4D - WORKERS' COMPENSATION
--------------------------------------------
7 8 9 10 11
1989 1990 1991 1992 1993
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . . 868 713 355 424
2. 1984 . . . . . . . . . . . 1,330 1,051 860 159
3. 1985 . . . . . . . . . . . 3,079 2,592 2,130 520
4. 1986 . . . . . . . . . . . 6,019 4,355 3,597 1,974 1,180
5. 1987 . . . . . . . . . . . 9,486 6,379 5,334 1,406 2,301
6. 1988 . . . . . . . . . . . 13,619 9,298 7,459 2,018 4,066
7. 1989 . . . . . . . . . . . 17,176 17,243 13,207 3,519 3,016
8. 1990 . . . . . . . . . . . X X X X 31,609 16,720 7,486 11,064
9. 1991 . . . . . . . . . . . X X X X X X X X 36,808 23,688 21,765
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X 71,470 46,344
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X 86,377
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4E - COMMERCIAL MULTIPLE PERIL
------------------------------------------------
2 3 4 5 6
1984 1985 1986 1987 1988
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . . 755 507 258
2. 1984 . . . . . . . . . . . 6,165 759 769 456
3. 1985 . . . . . . . . . . . X X X X 6,656 1,145 321 95
4. 1986 . . . . . . . . . . . X X X X X X X X 9,525 688 927
5. 1987 . . . . . . . . . . . X X X X X X X X X X X X 11,484 2,363
6. 1988 . . . . . . . . . . . X X X X X X X X X X X X X X X X 9,694
7. 1989 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
8. 1990 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4E - COMMERCIAL MULTIPLE PERIL
------------------------------------------------
7 8 9 10 11
1989 1990 1991 1992 1993
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . . 361 44 25
2. 1984 . . . . . . . . . . . 723 116
3. 1985 . . . . . . . . . . . 1,309 306 2,916
4. 1986 . . . . . . . . . . . 2,313 522 863 3,101 440
5. 1987 . . . . . . . . . . . 4,022 988 1,182 2,615 459
6. 1988 . . . . . . . . . . . 3,937 1,906 2,006 2,618 1,082
7. 1989 . . . . . . . . . . . 7,918 4,016 3,441 2,580 1,930
8. 1990 . . . . . . . . . . . X X X X 6,505 3,412 8,654 5,870
9. 1991 . . . . . . . . . . . X X X X X X X X 12,669 13,018 7,029
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X 16,157 12,158
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X 23,661
</TABLE>
<PAGE> 29
FORM 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
<TABLE>
<CAPTION>
SCHEDULE P - PART 4F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES
AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
- ---------------------------------------------------------------------------------------------------------------------------------
1
Years in Which
Losses Were 2 3 4 5 6
Incurred 1984 1985 1986 1987 1988
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . . 600 400
2. 1984 . . . . . . . . . . . 1,000 600 400 4
3. 1985 . . . . . . . . . . . X X X X 1,000 600 400 5
4. 1986 . . . . . . . . . . . X X X X X X X X 1,000 600 103
5. 1987 . . . . . . . . . . . X X X X X X X X X X X X 1,000 243
6. 1988 . . . . . . . . . . . X X X X X X X X X X X X X X X X 1,645
7. 1989 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
8. 1990 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES
AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
- ---------------------------------------------------------------------------------------------------------------------------------
7 8 9 10 11
1989 1990 1991 1992 1993
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . . 41 91
2. 1984 . . . . . . . . . . . 108 261
3. 1985 . . . . . . . . . . . 117 593
4. 1986 . . . . . . . . . . . 370 281 770 12
5. 1987 . . . . . . . . . . . 659 490 81 1,054 47
6. 1988 . . . . . . . . . . . 562 765 116 1,332 2,760
7. 1989 . . . . . . . . . . . 243 861 166 1,308 4,098
8. 1990 . . . . . . . . . . . X X X X 897 1,637 2,166 3,907
9. 1991 . . . . . . . . . . . X X X X X X X X 2,000 4,137 3,767
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X 8,483 5,503
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X 6,700
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . .
2. 1984 . . . . . . . . . . .
3. 1985 . . . . . . . . . . . X X X X N O N E
4. 1986 . . . . . . . . . . . X X X X X X X X
5. 1987 . . . . . . . . . . . X X X X X X X X X X X X
6. 1988 . . . . . . . . . . . X X X X X X X X X X X X X X X X
7. 1989 . . . . . . . . . . . X X X X X X X X X X X X X X X X
8. 1990 . . . . . . . . . . . X X X X X X X X X X X X X X X X
9. 1991 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE
<S> <C> <C> <C> <C>
1. Prior . . . . . . . . . . .
2. 1984 . . . . . . . . . . .
3. 1985 . . . . . . . . . . .
4. 1986 . . . . . . . . . . .
5. 1987 . . . . . . . . . . .
6. 1988 . . . . . . . . . . .
7. 1989 . . . . . . . . . . .
8. 1990 . . . . . . . . . . .
9. 1991 . . . . . . . . . . . X X X X X X X X
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT
(ALL PERILS), BOILER AND MACHINERY)
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . .
2. 1984 . . . . . . . . . . .
3. 1985 . . . . . . . . . . . X X X X
4. 1986 . . . . . . . . . . . X X X X X X X X
5. 1987 . . . . . . . . . . . X X X X X X X X X X X X
6. 1988 . . . . . . . . . . . X X X X X X X X X X X X X X X X
7. 1989 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
8. 1990 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT
(ALL PERILS), BOILER AND MACHINERY)
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . .
2. 1984 . . . . . . . . . . .
3. 1985 . . . . . . . . . . .
4. 1986 . . . . . . . . . . .
5. 1987 . . . . . . . . . . .
6. 1988 . . . . . . . . . . .
7. 1989 . . . . . . . . . . .
8. 1990 . . . . . . . . . . . X X X X
9. 1991 . . . . . . . . . . . X X X X X X X X
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X 72
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X 336
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . . 1,570 1,400 125
2. 1984 . . . . . . . . . . . 8,515 1,870 1,900 701
3. 1985 . . . . . . . . . . . X X X X 9,115 2,800 2,439 645
4. 1986 . . . . . . . . . . . X X X X X X X X 14,180 3,689 1,177
5. 1987 . . . . . . . . . . . X X X X X X X X X X X X 16,132 8,427
6. 1988 . . . . . . . . . . . X X X X X X X X X X X X X X X X 12,220
7. 1989 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
8. 1990 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . . 1,590 238 339
2. 1984 . . . . . . . . . . . 685 864
3. 1985 . . . . . . . . . . . 4,273 1,073 1,394
4. 1986 . . . . . . . . . . . 4,400 2,309 2,242 1,892 856
5. 1987 . . . . . . . . . . . 6,190 3,484 4,828 3,203 8,081
6. 1988 . . . . . . . . . . . 4,163 4,538 5,904 3,361 10,344
7. 1989 . . . . . . . . . . . 2,774 6,788 13,476 8,080 9,687
8. 1990 . . . . . . . . . . . X X X X 4,812 13,756 9,147 11,188
9. 1991 . . . . . . . . . . . X X X X X X X X 10,725 11,188 19,269
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X 11,614 18,145
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X 28,766
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . .
2. 1984 . . . . . . . . . . . 500
3. 1985 . . . . . . . . . . . X X X X 500 1,000 250
4. 1986 . . . . . . . . . . . X X X X X X X X 2,000 1,000 1,250
5. 1987 . . . . . . . . . . . X X X X X X X X X X X X 7,000 1,500
6. 1988 . . . . . . . . . . . X X X X X X X X X X X X X X X X 9,000
7. 1989 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
8. 1990 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
9. 1991 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE P - PART 4H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE
<S> <C> <C> <C> <C> <C>
1. Prior . . . . . . . . . . .
2. 1984 . . . . . . . . . . .
3. 1985 . . . . . . . . . . .
4. 1986 . . . . . . . . . . . 2,500
5. 1987 . . . . . . . . . . . 4,100 600
6. 1988 . . . . . . . . . . . 4,850 1,000 275
7. 1989 . . . . . . . . . . . 2,800 4,850 750 300
8. 1990 . . . . . . . . . . . X X X X 7,800 3,250 800
9. 1991 . . . . . . . . . . . X X X X X X X X 9,975 3,200
10. 1992 . . . . . . . . . . . X X X X X X X X X X X X 9,950 2,740
11. 1993 . . . . . . . . . . . X X X X X X X X X X X X X X X X 2,740
</TABLE>
<PAGE> 30
FORM 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 4I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY AND THEFT
<TABLE>
<CAPTION>
BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES
AND ALLOCATED EXPENSES AT YEAR END (000 OMMITTED)
- -----------------------------------------------------------------------------------------------------
1
Years in Which 2 3 4 5 6
Losses Were
Incurred 1984 1985 1986 1987 1988
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior.......... X X X X X X X X X X X X X X X X X X X X
2. 1992........... X X X X X X X X X X X X X X X X X X X X
3. 1993........... X X X X X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION> BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES
AND ALLOCATED EXPENSES AT YEAR END (000 OMMITTED)
- -----------------------------------------------------------------------------------------------------
1
Years in Which 7 8 9 10 11
Losses Were
Incurred 1989 1990 1991 1992 1993
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior.......... X X X X X X X X 520 37 1,224
2. 1992........... X X X X X X X X X X X X 463 469
3. 1993........... X X X X X X X X X X X X X X X X 490
</TABLE>
<TABLE>
<CAPTION> SCHEDULE P - PART 4J - AUTO PHYSICAL DAMAGE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior.......... X X X X X X X X X X X X X X X X X X X X
2. 1992........... X X X X X X X X X X X X X X X X X X X X
3. 1993........... X X X X X X X X X X X X X X X X X X X X
1. Prior.......... X X X X X X X X 1,030 25 1,447
2. 1992........... X X X X X X X X X X X X 2,120 1,515
3. 1993........... X X X X X X X X X X X X X X X X 2,196
</TABLE>
<TABLE>
<CAPTION> SCHEDULE P - PART 4K - FIDELITY, SURETY, FINANCIAL GUARANTY, MORTGAGE GUARANTY
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior.......... X X X X X X X X X X X X X X X X X X X X
2. 1992........... X X X X X X X X X X X X X X X X X X X X
3. 1993........... X X X X X X X X X X X X X X X X X X X X
1. Prior.......... X X X X X X X X 430 194 527
2. 1992........... X X X X X X X X X X X X 236 168
3. 1993........... X X X X X X X X X X X X X X X X 548
</TABLE>
<TABLE>
<CAPTION> SCHEDULE P - PART 4L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior.......... X X X X X X X X X X X X X X X X X X X X
2. 1992........... X X X X X X X X X X X X X X X X X X X X
3. 1993........... X X X X X X X X X X X X X X X X X X X X
1. Prior.......... X X X X X X X X N O N E
2. 1992........... X X X X X X X X X X X X
3. 1993........... X X X X X X X X X X X X X X X X
</TABLE>
<TABLE>
<CAPTION> SCHEDULE P - PART 4M - INTERNATIONAL
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior..........
2. 1984...........
3. 1985........... X X X X
4. 1986........... X X X X X X X X N O N E
5. 1987........... X X X X X X X X X X X X
6. 1988........... X X X X X X X X X X X X X X X X
7. 1989........... X X X X X X X X X X X X X X X X X X X X
8. 1990........... X X X X X X X X X X X X X X X X X X X X
9. 1991........... X X X X X X X X X X X X X X X X X X X X
10. 1992........... X X X X X X X X X X X X X X X X X X X X
11. 1993........... X X X X X X X X X X X X X X X X X X X X
1. Prior..........
2. 1984...........
3. 1985...........
4. 1986...........
5. 1987...........
6. 1988...........
7. 1989...........
8. 1990........... X X X X
9. 1991........... X X X X X X X X
10. 1992........... X X X X X X X X X X X X
11. 1993........... X X X X X X X X X X X X X X X X
</TABLE>
<PAGE> 31
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P - PART 4N - REINSURANCE A
BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES
AND ALLOCATED EXPENSES AT YEAR END (000 OMMITTED)
<TABLE>
<CAPTION>
1
Years in Which 2 3 4 5 6
Losses Were
Incurred 1984 1985 1986 1987 1988
<S> <C> <C> <C> <C> <C>
1. 1988........... X X X X X X X X X X X X X X X X NONE
2. 1989........... X X X X X X X X X X X X X X X X
3. 1990........... X X X X X X X X X X X X X X X X
4. 1991........... X X X X X X X X X X X X X X X X
5. 1992........... X X X X X X X X X X X X X X X X
6. 1993........... X X X X X X X X X X X X X X X X
7 8 9 10 11
1989 1990 1991 1992 1993
1. 1988...........
2. 1989...........
3. 1990...........
4. 1991........... X X X X
5. 1992........... X X X X X X X X
6. 1993........... X X X X X X X X X X X X
</TABLE>
SCHEDULE P - PART 40 - REINSURANCE B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1. 1988........... X X X X X X X X X X X X X X X X NONE
2. 1989........... X X X X X X X X X X X X X X X X
3. 1990........... X X X X X X X X X X X X X X X X
4. 1991........... X X X X X X X X X X X X X X X X
5. 1992........... X X X X X X X X X X X X X X X X
6. 1993........... X X X X X X X X X X X X X X X X
1. 1988...........
2. 1989...........
3. 1990...........
4. 1991........... X X X X
5. 1992........... X X X X X X X X
6. 1993........... X X X X X X X X X X X X
</TABLE>
SCHEDULE P - PART 4P - REINSURANCE C
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1. 1988........... X X X X X X X X X X X X X X X X NONE
2. 1989........... X X X X X X X X X X X X X X X X
3. 1990........... X X X X X X X X X X X X X X X X
4. 1991........... X X X X X X X X X X X X X X X X
5. 1992........... X X X X X X X X X X X X X X X X
6. 1993........... X X X X X X X X X X X X X X X X
1. 1988...........
2. 1989...........
3. 1990...........
4. 1991........... X X X X
5. 1992........... X X X X X X X X
6. 1993........... X X X X X X X X X X X X
</TABLE>
SCHEDULE P - PART 4Q - REINSURANCE D
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1. 1984........... NONE
2. 1985........... X X X X
3. 1996........... X X X X X X X X
4. 1997........... X X X X X X X X X X X X
</TABLE>
SCHEDULE P - PART 4R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1. Prior.......... 149 218
2. 1984........... 65 119 268
3. 1985........... X X X X 164 114 693 455
4. 1986........... X X X X X X X X 145 293 702
5. 1987........... X X X X X X X X X X X X 279 868
6. 1988........... X X X X X X X X X X X X X X X X 475
7. 1989........... X X X X X X X X X X X X X X X X X X X X
8. 1990........... X X X X X X X X X X X X X X X X X X X X
9. 1991........... X X X X X X X X X X X X X X X X X X X X
10. 1992........... X X X X X X X X X X X X X X X X X X X X
11. 1993........... X X X X X X X X X X X X X X X X X X X X
1. Prior.......... 22
2. 1984........... 60
3. 1985........... 287 160
4. 1986........... 626 273 753 1,031 340
5. 1987........... 915 516 243 1,777 1,472
6. 1988........... 959 993 721 2,274 2,027
7. 1989........... 713 2,094 1,431 1,930 5,807
8. 1990........... X X X X 3,382 2,413 4,115 8,988
9. 1991........... X X X X X X X X 2,439 5,705 8,958
10. 1992........... X X X X X X X X X X X X 8,718 8,215
11. 1993........... X X X X X X X X X X X X X X X X 14,899
</TABLE>
SCHEDULE P - PART 4R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1. Prior..........
2. 1984...........
3. 1985........... X X X X
4. 1986........... X X X X X X X X
5. 1987........... X X X X X X X X X X X X
6. 1988........... X X X X X X X X X X X X X X X X
7. 1989........... X X X X X X X X X X X X X X X X
8. 1990........... X X X X X X X X X X X X X X X X NONE
9. 1991........... X X X X X X X X X X X X X X X X
10. 1992........... X X X X X X X X X X X X X X X X X X X X
11. 1993........... X X X X X X X X X X X X X X X X X X X X
1. Prior..........
2. 1984...........
3. 1985...........
4. 1986...........
5. 1987...........
6. 1988...........
7. 1989...........
8. 1990...........
9. 1991........... X X X X
10. 1992........... X X X X X X X X X X X X
11. 1993........... X X X X X X X X X X X X X X X X
</TABLE>
<PAGE> 32
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE CINCINNATI INSURANCE GROUP
SCHEDULE P INTERROGATORIES
1. Computation of excess statutory reserves over statement reserves. See
Instructions for explanation and formulas.
(a) Auto Liability (private passenger and commercial)
<TABLE>
<S> <C> <C> <C> <C>
1993 $0( 75.0%) 1992 $0( 75.0%)
--------------------------- -----------------------------
1991 $0( 75.0%) Total $0
--------------------------- ----------------------
</TABLE>
(b) Other Liability and Products Liability
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
1993 $4,456( 60.0%) 1992 $8,660( 60.0%)
--------------------------- -----------------------------
1991 $15,075( 60.0%) Total $28,191
--------------------------- ----------------------
</TABLE>
(c) Medical Malpractice
<TABLE>
<S> <C> <C> <C> <C>
1993 $0( 75.0%) 1992 $0( 75.0%)
--------------------------- -----------------------------
1991 $0( 75.0%) Total $0
--------------------------- ----------------------
</TABLE>
(d) Worker's Compensation
<TABLE>
<S> <C> <C> <C> <C>
1993 $0( 75.0%) 1992 $0( 75.0%)
--------------------------- -----------------------------
1991 $0( 75.0%) Total $0
--------------------------- ----------------------
</TABLE>
(e) Credit
<TABLE>
<S> <C>
Total $0
----------------------
</TABLE>
(f) All Lines Total (Report here and Page 3)
<TABLE>
<S> <C>
Total $0
----------------------
</TABLE>
2. What is the extended loss and expense reserve - direct and assumed -
for the following classes? An example of an extended loss and expense
reserve is the actuarial reserve for the free-tail coverage arising
upon death, disability or retirement in most medical malpractice
policies. Such a liability is to be reported here even if it was not
reported elsewhere in Schedule P, but otherwise reported as a
liability item on page 3. Show the full reserve amount, not just the
change during the current year.
<TABLE>
<CAPTION>
Year in which premiums 1 2 3
were earned and losses Medical Other Product
were incurred Malpractice Liability Liability
----------------------------------------------------------------------------------------
<S> <C> <C> <C>
(a) 1987
(b) 1988
(c) 1989
(d) 1990
(e) 1991
(f) 1992
(g) 1993
---------------------------------------------------------------------------------------
(h) Totals 0 0 0
</TABLE>
3. The term "Loss expense" includes all payments for legal expenses,
including attorney's and witness fees and court costs, salaries and
expenses of investigators, adjustors and field men, rents, stationery,
telegraph and telephone charges, postage, salaries and expenses of
office employees, home office expenses and all other payments under or
on account of such injuries, whether the payments are allocated to
specific claims or are unallocated. Are they so reported in this
statement? Answer: Yes [X] No [ ]
4. The unallocated loss expense payments paid during the most recent
calendar year should be distributed to the various years in which
losses were incurred as follows: (1) 45% to the most recent year, (2)
5% to the next most recent year, and (3) the balance to all years,
including the most recent, in proportion to the amount of loss payments
paid for each year during the most recent calendar year. If the
distribution in (1) or(2) produces an accumulated distribution to such
year in excess of 10% of the premiums earned for such year,
disregarding all distributions made under (3), such accumulated
distribution should be limited to 10% of premiums earned and the
balance distributed in accordance with (3). Are they so reported in
this Statement? Answer: Yes [X] No [ ]
5. Do any lines in Schedule P include reserves which are reported gross of
any discount to present value of future payments, but are reported net
of such discounts on page 10? Yes [ ] No [X]
If yes, proper reporting must be made in the Notes to Financial
Statements, as specified in the Instructions. Also, the discounts must
be reported in Schedule P - Part 1, Columns 31 and 32.
Schedule P must be completed gross of non-tabular discounting. Work
papers relating to discount calculations must be available for
examination upon request.
Discounting is allowed only if expressly permitted by the state
insurance department to which this Annual Statement is being filed.
6. What were the net premiums in force at the end of the year for:
<TABLE>
<CAPTION>
(in thousands of dollars)
<S> <C> <C>
(a) Fidelity $5,319
(b) Surety $6,428
7. Claim count information is reported (check one) (a) per claim X
If not the same in all years, explain in Question 8, -----------
(b) per claimant
-----------
</TABLE>
8. The information provided in Schedule P will be used by many persons to
estimate the adequacy of the current loss and expense reserves, among
other things. Are there any especially significant events, coverage,
retention or accounting changes which have occurred which must be
considered when making such analyses (An extended statement may be
attached)? NONE
------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------
