Schedule II



Cincinnati Financial Corporation (parent company only)
Condensed Balance Sheets
(In millions)	At December 31,
	2013			2012
ASSETS
Investments
Fixed maturities, at fair value	$	75		$	103
Equity securities, at fair value	1,366			958
Other invested assets	32			31
Total investments	1,473			1,092
Cash and cash equivalents	91			90
Equity in net assets of subsidiaries	5,351			5,103
Investment income receivable	5			3
Land, building and equipment, net, for company use (accumulated depreciation: 2013—$106; 2012—$100)	148			153
Prepaid income tax	2			14
Other assets	24			35
Due from subsidiaries	114			75
Total assets	$	7,208		$	6,565
LIABILITIES
Dividends declared but unpaid	$	68		$	66
Deferred federal income tax	185			63
Long-term debt	790			790
Other liabilities	95			193
Total liabilities	1,138			1,112
SHAREHOLDERS' EQUITY
Common stock	397			394
Paid-in capital	1,191			1,134
Retained earnings	4,268			4,021
Accumulated other comprehensive income	1,504			1,129
Treasury stock at cost	(1,290		)	(1,225		)
Total shareholders' equity	6,070			5,453
Total liabilities and shareholders' equity	$	7,208		$	6,565

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8.

Schedule II (continued)



Cincinnati Financial Corporation (parent company only)
Condensed Statements of Income
(In millions)	Years ended December 31,
	2013			2012			2011
REVENUES
Investment income, net of expenses	$	41		$	42		$	41
Realized gains on investments	21			34			15
Other revenue	15			15			14
Total revenues	77			91			70

EXPENSES
Interest expense	53			53			53
Other expenses	29			27			25
Total expenses	82			80			78

INCOME (LOSS) BEFORE INCOME TAXES AND EARNINGS OF SUBSIDIARIES	(5		)	11			(8		)

BENEFIT FOR INCOME TAXES	(11		)	(4		)	(9		)

NET INCOME BEFORE EARNINGS OF SUBSIDIARIES	6			15			1

INCREASE IN EQUITY OF SUBSIDIARIES	511			406			163

NET INCOME	$	517		$	421		$	164

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8.

Schedule II (continued)



Cincinnati Financial Corporation (parent company only)
Condensed Statements of Comprehensive Income
(In millions)	Years ended December 31,
	2013			2012			2011
NET INCOME	$	517		$	421		$	164
OTHER COMPREHENSIVE INCOME, BEFORE TAX
Unrealized gains on investments available-for-sale	303			67			59
Unrealized gains on investments held by subsidiaries	240			361			250
Reclassification adjustment for (gains) included in net income	(21		)	(34		)	(15		)
Reclassification adjustment for (gains) included in net income on subsidiaries	(62		)	(8		)	(55		)
Unrealized (losses) gains on other	(1		)	5			1
Unrealized gains (losses) on other subsidiaries	35			(26		)	(12		)
Unrealized gains on investments available-for-sale, investments held by subsidiaries and other	494			365			228
Amortization of pension actuarial gain (loss) and prior service cost	83			(13		)	(25		)
Other comprehensive income before tax	577			352			203
Income taxes on above of other comprehensive income	202			124			71
Other comprehensive income, net of tax	375			228			132
COMPREHENSIVE INCOME	$	892		$	649		$	296

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8.

Schedule II (continued)



Cincinnati Financial Corporation (parent company only)
Condensed Statements of Cash Flows
(In millions)	Years ended December 31,
	2013			2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	517		$	421		$	164
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7			7			7
Realized gains on investments, net	(21		)	(34		)	(15		)
Dividends from subsidiaries	378			300			180
Changes in:
Increase in equity of subsidiaries	(511		)	(406		)	(163		)
Investment income receivable	(2		)	1			1
Current federal income taxes	12			(24		)	25
Deferred income tax	(6		)	18			(10		)
Other assets	(30		)	(2		)	2
Other liabilities	39			7			(23		)
Intercompany receivable for operations	(39		)	—			—
Net cash provided by operating activities	344			288			168

CASH FLOWS FROM INVESTING ACTIVITIES
Sale of fixed maturities	—			114			5
Call or maturity of fixed maturities	23			13			13
Sale of equity securities	75			111			101
Purchase of fixed maturities	—			(1		)	—
Purchase of equity securities	(179		)	(212		)	(78		)
Investment in buildings and equipment, net	(1		)	(1		)	(1		)
Change in other invested assets, net	4			4			5
Return of capital from subsidiaries	22			—			—
Net cash (used) provided by investing activities	(56		)	28			45

CASH FLOWS FROM FINANCING ACTIVITIES
Increase in notes payable	—			—			55
Payment of cash dividends to shareholders	(263		)	(256		)	(255		)
Purchase of treasury shares	(52		)	—			(32		)
Proceeds from stock options exercised	25			9			(4		)
Net transfers to subsidiaries	—			(2		)	2
Other	3			3			3
Net cash used in financing activities	(287		)	(246		)	(231		)
Net change in cash and cash equivalents	1			70			(18		)
Cash and cash equivalents at beginning of year	90			20			38
Cash and cash equivalents at end of year	$	91		$	90		$	20

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8.