Item 6. Selected Financial Data



(In millions, except per share data and shares outstanding in thousands)	Years ended December 31,
	2017			2016			2015			2014			2013
Consolidated Income Statement Data
Earned premiums	$	4,954		$	4,710		$	4,480		$	4,243		$	3,902
Investment income, net of expenses	609			595			572			549			529
Realized investment gains, net *	148			124			70			133			83
Total revenues	5,732			5,449			5,142			4,945			4,531
Net income	1,045			591			634			525			517
Net income per common share:
Basic	$	6.36		$	3.59		$	3.87		$	3.21		$	3.16
Diluted	6.29			3.55			3.83			3.18			3.12
Cash dividends per common share:
Ordinary declared	2.00			1.92			1.84			1.76			1.655
Ordinary paid	1.98			1.90			1.82			1.74			1.6425
Special declared and paid	0.50			—			0.46			—			—
Diluted weighted average shares outstanding	166.0			166.5			165.6			165.1			165.4
Consolidated Balance Sheet Data
Total investments	$	17,051		$	15,500		$	14,423		$	14,386		$	13,564
Net unrealized investment portfolio gains	3,540			2,625			2,094			2,719			2,335
Deferred policy acquisition costs	670			637			616			578			565
Total assets	21,843			20,386			18,888			18,748			17,657
Gross loss and loss expense reserves	5,273			5,085			4,718			4,485			4,311
Life policy and investment contract reserves	2,729			2,671			2,583			2,497			2,390
Long-term debt	787			787			786			786			785
Shareholders' equity	8,243			7,060			6,427			6,573			6,070
Book value per share	50.29			42.95			39.20			40.14			37.21
Shares outstanding	163,899			164,387			163,944			163,747			163,109
Value creation ratio	22.9		%	14.5		%	3.4		%	12.6		%	16.1		%
Consolidated Property Casualty Operations Data
Earned premiums	$	4,722		$	4,482		$	4,271		$	4,045		$	3,713
Unearned premiums	2,403			2,306			2,200			2,081			1,970
Gross loss and loss expense reserves	5,219			5,035			4,660			4,438			4,241
Investment income, net of expenses	392			384			368			358			348
Loss and loss expense ratio	66.4		%	63.8		%	60.2		%	65.0		%	61.9		%
Underwriting expense ratio	31.1			31.0			30.9			30.6			31.9
Combined ratio	97.5		%	94.8		%	91.1		%	95.6		%	93.8		%

We retrospectively adopted ASU 2015-15, Interest-Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, as of December 31, 2015. All prior year information has been restated.


*	Realized investment gains and losses are integral to our financial results over the long term, but our substantial discretion in the timing of investment sales may cause this value to fluctuate substantially. Also, applicable accounting standards require us to recognize gains and losses from certain changes in fair values of securities and embedded derivatives without actual realization of those gains and losses. We discuss realized investment gains for the past three years in Item 7, Investments Results.

Realized investment gains and losses are integral to our financial results over the long term, but our substantial discretion in the timing of investment sales may cause this value to fluctuate substantially. Also, applicable accounting standards require us to recognize gains and losses from certain changes in fair values of securities and embedded derivatives without actual realization of those gains and losses. We discuss realized investment gains for the past three years in Item 7, Investments Results.

Cincinnati Financial Corporation - 2017 10-K - Page 42

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