Item 6. Selected Financial Data


(In millions, except per share data and shares outstanding in thousands)	Years ended December 31,
	2020			2019			2018			2017			2016
Consolidated Income Statement Data
Earned premiums	$	5,980		$	5,604		$	5,170		$	4,954		$	4,710
Investment income, net of expenses	670			646			619			609			595
Investment gains and losses, net *	865			1,650			(402)			148			124
Total revenues	7,536			7,924			5,407			5,732			5,449
Net income	1,216			1,997			287			1,045			591
Net income per common share:
Basic	$	7.55		$	12.24		$	1.76		$	6.36		$	3.59
Diluted	7.49			12.10			1.75			6.29			3.55
Cash dividends per common share:
Ordinary declared	2.40			2.24			2.12			2.00			1.92
Ordinary paid	2.36			2.21			2.09			1.98			1.90
Special declared and paid	—			—			—			0.50			—
Diluted weighted average shares	162.4			165.1			164.5			166.0			166.5
Consolidated Balance Sheet Data
Total investments	$	21,542		$	19,746		$	16,732		$	17,051		$	15,500
Net unrealized investment portfolio gains	5,955			4,761			2,598			3,540			2,625
Deferred policy acquisition costs	805			774			738			670			637
Total assets	27,542			25,408			21,935			21,843			20,386
Gross loss and loss expense reserves	6,746			6,147			5,707			5,273			5,085
Life policy and investment contract reserves	2,915			2,835			2,779			2,729			2,671
Long-term debt	788			788			788			787			787
Shareholders' equity	10,789			9,864			7,833			8,243			7,060
Book value per share	67.04			60.55			48.10			50.29			42.95
Shares outstanding	160,941			162,918			162,843			163,899			164,387
Value creation ratio	14.7		%	30.5		%	(0.1)		%	22.9		%	14.5		%
Consolidated Property Casualty Operations Data
Earned premiums	$	5,691		$	5,334		$	4,920		$	4,722		$	4,482
Unearned premiums	2,959			2,787			2,515			2,403			2,306
Gross loss and loss expense reserves	6,677			6,088			5,646			5,219			5,035
Investment income, net of expenses	431			419			401			392			384
Loss and loss expense ratio	67.4		%	62.8		%	65.5		%	66.4		%	63.8		%
Underwriting expense ratio	30.7			31.0			30.9			31.1			31.0
Combined ratio	98.1		%	93.8		%	96.4		%	97.5		%	94.8		%

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 - 2020 10-K - Page 48

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