Item 6. Selected Financial Data

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Item 6. Selected Financial Data



(In millions, except per share data and shares outstanding in thousands)	Years ended December 31,
	2018			2017			2016			2015			2014
Consolidated Income Statement Data
Earned premiums	$	5,170		$	4,954		$	4,710		$	4,480		$	4,243
Investment income, net of expenses	619			609			595			572			549
Investment gains and losses, net *	(402		)	148			124			70			133
Total revenues	5,407			5,732			5,449			5,142			4,945
Net income	287			1,045			591			634			525
Net income per common share:
Basic	$	1.76		$	6.36		$	3.59		$	3.87		$	3.21
Diluted	1.75			6.29			3.55			3.83			3.18
Cash dividends per common share:
Ordinary declared	2.12			2.00			1.92			1.84			1.76
Ordinary paid	2.09			1.98			1.90			1.82			1.74
Special declared and paid	—			0.50			—			0.46			—
Diluted weighted average shares	164.5			166.0			166.5			165.6			165.1
Consolidated Balance Sheet Data
Total investments	$	16,732		$	17,051		$	15,500		$	14,423		$	14,386
Net unrealized investment portfolio gains	2,598			3,540			2,625			2,094			2,719
Deferred policy acquisition costs	738			670			637			616			578
Total assets	21,935			21,843			20,386			18,888			18,748
Gross loss and loss expense reserves	5,707			5,273			5,085			4,718			4,485
Life policy and investment contract reserves	2,779			2,729			2,671			2,583			2,497
Long-term debt	788			787			787			786			786
Shareholders' equity	7,833			8,243			7,060			6,427			6,573
Book value per share	48.10			50.29			42.95			39.20			40.14
Shares outstanding	162,843			163,899			164,387			163,944			163,747
Value creation ratio	(0.1		)%	22.9		%	14.5		%	3.4		%	12.6		%
Consolidated Property Casualty Operations Data
Earned premiums	$	4,920		$	4,722		$	4,482		$	4,271		$	4,045
Unearned premiums	2,515			2,403			2,306			2,200			2,081
Gross loss and loss expense reserves	5,646			5,219			5,035			4,660			4,438
Investment income, net of expenses	401			392			384			368			358
Loss and loss expense ratio	65.5		%	66.4		%	63.8		%	60.2		%	65.0		%
Underwriting expense ratio	30.9			31.1			31.0			30.9			30.6
Combined ratio	96.4		%	97.5		%	94.8		%	91.1		%	95.6		%

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.


*	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 changes in fair values of equity securities and changes in embedded derivatives without actual realization of those gains and losses. We discuss investment gains and losses for the past three years in Item 7, Investments Results.

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 changes in fair values of equity securities and changes in embedded derivatives without actual realization of those gains and losses. We discuss investment gains and losses for the past three years in Item 7, Investments Results.

Cincinnati Financial Corporation - 2018 10-K - Page 47

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