Cincinnati Financial



		Cincinnati Financial
		C O R P O R A T I O N

		Credit Suisse Insurance Conference November 16, 2006



		Cincinnati Financial
		C O R P O R A T I O N

		Jack Schiff, Jr., CPCU, Chairman, Chief Executive Officer J.F. Scherer, Senior Vice President - Sales & Marketing Marty Hollenbeck, CFA, Vice President - Investments Heather Wietzel, Vice President - Investor Relations

Nasdaq: CINF

Today’s presentation contains forward-looking statements that involve risks and uncertainties. Please refer to our various filings with the Securities and Exchange Commission for factors that could cause results to materially differ from those discussed.

The forward-looking information in this presentation has been publicly disclosed, most recently on November 16, 2006, and should be considered to be effective only as of that date. Its inclusion in this document is not intended to be an update or reaffirmation of the forward-looking information as of any later date.

Reconciliations of non-GAAP and non-statutory data are available at www.cinfin.com.

Regional Property Casualty Insurer


§	Market capitalization of	[Map attached in PDF format]
	$8.1 billion
§	22nd largest publicly traded
	U.S. property casualty
	insurer based on revenues
§	Serving select group of
	agencies in 32 states
§	Market for 75% of agency’s
	typical risks
§	Well capitalized and highly
	rated with A.M. Best
	rating of A++

Confidence in the Long-term

[Graph attached in PDF format]

* See the Financials & Analysis tab of the Investors page of ww.cinfin.com for non-GAAP and non-statutory reconciliation information

Outlook: 2006 and Beyond

2006 outlook

Written premiums up at least 2%

GAAP combined ratio of 94% to 95%, catastrophe losses above 5.0%

Investment income growth in 8.0% to 8.5% range

Option expensing

And beyond

Sustain steady growth

Maintain industry-leading profitability

Accelerate investment income growth

Bring results to bottom line

Equity portfolio performance ahead of S&P 500 - resumption of book value growth

Distinguishing Cincinnati

Cultivate relationships with independent agents

Making decisions at the local level

Invest for long-term total-return

Covering insurance liabilities by purchasing fixed-maturity securities

Using available cash to purchase equity securities

Achieve claims excellence

Responding to reported claims

Reserving for not-yet paid or reported claims


		Achieve Claims Excellence

Claims Philosophy

Respond to reported claims

750 claims representatives

Based in local communities

Serving agencies, policyholders and claimants

Headquarter claims supervisors averaging more than 25 years of experience

Total Statutory Reserve Balance
Objective: modestly redundant reserves

Property casualty group

[Graph attached in PDF format]


		Cultivate Relationships with Independent Agents

Proven Agency-centered Business Strategy

Regional carrier

Wide range of property casualty coverages

Market for about 75% of agency’s typical risks

1,150 field associates assigned to agencies

Local agents place value on claims service, market stability, financial strength, access to executives

Cincinnati is #1 or #2 carrier in approximately 74% of reporting agency locations served for more than five years

Market for 75% of Agency’s Typical Risks

Consolidated

$3.164 Billion

Property Casualty

$3.058 Billion

[Charts attached in PDF format]

Percent of 2005 Consolidated Net Earned Premiums

*Includes Machinery & Equipment

Opportunities to Continue Strong Growth


§	Room to grow in	Property casualty insurance Net written premium growth [Chart attached in PDF format]
	marketplace
§	Continue to subdivide
	territories to improve
	service
§	Increase penetration
	of each agency’s
	business
§	Selectively appoint
	new agencies

* See the Financials & Analysis tab of the Investors page of ww.cinfin.com for non-GAAP and non-statutory reconciliation information

Balancing Growth with Profitability


§	Targeting FY 2006	Adjusted statutory combined ratio [Chart attached in PDF format]
	GAAP combined ratio
	of 94% - 95%
	- Catastrophe losses
	could be above 5.0%
§	Leverage local
	knowledge/underwriting
§	Maintain low cost
	structure

* See the Financials & Analysis tab of the Investors page of ww.cinfin.com for non-GAAP and non-statutory reconciliation information


	Invest for Long-term Total Return

Investment Philosophy

Cover current liabilities with fixed-income investments

Allocate new cash flow to equity securities, considering:

Insurance department regulations

Rating agency commentary

Common stock to statutory surplus ratio

Parent-company investment assets to total assets ratio

Equity investment offers potential for current income and capital appreciation

Portfolio Goals


Income		Growth
§	Achieved with interest and	§	Long-term investment horizon
	dividends	§	Increases surplus
§	Bond quality rising;	§	Enhances book value and
	municipals, agency paper		financial strength
§	Large, long-term positions in	§	Primarily achieved with
	proven, dividend-paying		common and convertible
	companies		securities
§	Reinvest coupon payments
§	Compounding

Investment Portfolio

Total-return focused

As of September 30, 2006, in billions

[Chart attached in PDF format]

Compounding Cash Flows

Over the long term


§	Pretax investment income	Investment income [Chart attached in PDF format]
	provides primary source of
	profit and cash flow
	- Dividend increases from
	38 equity holdings in the
	last 12 months =
	$15 million in annualized
	investment income
§	Surplus contributes to
	financial strength
§	Drives book value growth

Maintain Financial Strength

Property casualty surplus ratio of 0.7-to-1 vs. industry average 1.0-to-1 (12/31/05)

Only 1.7% of property casualty groups rated A++ by A.M. Best


	Senior Debentures	Property Casualty	Life
A.M. Best	aa-	A++	A+
Fitch	A+	AA	AA
Moody’s	A2	Aa3	--
S&P	A	AA-	AA-



		Cincinnati Financial
		C O R P O R A T I O N

		Jack Schiff, Jr., CPCU, Chairman, Chief Executive Officer J.F. Scherer, Senior Vice President - Sales & Marketing Marty Hollenbeck, CFA, Vice President - Investments Heather Wietzel, Vice President - Investor Relations

Enhancing Return to Shareholders


§	Focus on total return -	Total Return Analysis December 31 totals [Chart attached in PDF format]
	appreciation plus dividends
	plus share repurchase
	- 1.85 million shares
	repurchased in first-quarter
	2006
§	11.8% 10-year compound
	growth of paid dividends
	(1995-2005)
§	9.8% increase in 2006
	indicated annual cash
	dividend rate
	- 46^th consecutive annual
	cash dividend increase



		Cincinnati Financial
		C O R P O R A T I O N

		Jack Schiff, Jr., CPCU, Chairman, Chief Executive Officer J.F. Scherer, Senior Vice President - Sales & Marketing Marty Hollenbeck, CFA, Vice President - Investments Heather Wietzel, Vice President - Investor Relations