Cincinnati Financial Corporation
Supplemental Financial Data
March 31, 2007
First Quarter
		6200 South Gilmore Road
		Fairfield, Ohio 45014-5141
		www.cinfin.com/investors
Investor Contact:		Media Contact:		Shareholder Contact:
Heather J. Wietzel		Joan O. Shevchik		Jerry L. Litton
513-870-2768		513-603-5323		513-870-2639
Cincinnati Financial Corporation
		A.M. Best	Fitch	Moody’s	Standard & Poor’s
Corporate Debt		aa-	A+	A2	A
The Cincinnati Insurance Companies
		A.M. Best	Fitch	Moody’s	Standard & Poor’s
Property Casualty Group		A++	--	Aa3	AA-
The Cincinnati Insurance Company		A++	AA	Aa3	AA-
The Cincinnati Indemnity Company		A++	AA	Aa3	AA-
The Cincinnati Casualty Company		A++	AA	Aa3	AA-
The Cincinnati Life Insurance Company		A+	AA	--	AA-
	Ratings are as of May 2, 2007, under continuing review and subject to change and/or affirmation.  For the latest ratings, select the Ratings tab on www.cinfin.com/investors.
	The consolidated financial statements and financial exhibits that follow are unaudited. These consolidated financial statements and exhibits should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K for 2006. The results of operations for interim periods should not be considered indicative of results to be expected for the full year. Certain 2006 interim period data has been updated to correct rounding differences.

	Supplemental Financial Data
	First Quarter 2007
		Page	Status
	Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3	5/2/2007
Consolidated
	Quick Reference	4	5/2/2007
	Consolidated Statements of Income	5	5/2/2007
	CFC and Subsidiary Consolidation – Three Months Ended March 31, 2007	6	5/2/2007
	CFC and Subsidiary Consolidation – Three Months Ended March 31, 2006	7	5/2/2007
	Consolidated Balance Sheets	8	5/2/2007
	10-Year Net Income Reconciliation	9	5/2/2007
	Quarterly Net Income Reconciliation	10	5/2/2007
	Top Holdings -- Common Stocks	11	5/2/2007
Property Casualty Insurance Operations
	GAAP Statements of Income	12	5/2/2007
	Statutory Statements of Income	13	5/2/2007
	Statutory Quarterly Analysis – Consolidated	14	5/2/2007
	Statutory Quarterly Analysis – Commercial Lines	15	5/2/2007
	Statutory Quarterly Analysis – Personal Lines	16	5/2/2007
	Direct Written Premiums by Line of Business and State	17	5/2/2007
	Quarterly Property Casualty Data – Commercial Lines of Business	18	5/2/2007
	Quarterly Property Casualty Data – Personal Lines of Business	19	5/2/2007
Reconciliation Data
	10-Year Property Casualty Data – Consolidated	20	5/2/2007
	6-Year Property Casualty Data – Commercial Lines	21	5/2/2007
	6-Year Property Casualty Data – Personal Lines	22	5/2/2007
	Quarterly Property Casualty Data – Consolidated	23	5/2/2007
	Quarterly Property Casualty Data – Commercial Lines	24	5/2/2007
	Quarterly Property Casualty Data – Personal Lines	25	5/2/2007
Life Insurance Operations
	GAAP Statements of Income	26	5/2/2007
	Statutory Statements of Income	27	5/2/2007
	Expenses as a Percentage of Premium	28	5/2/2007

Definitions of Non-GAAP Information and
Reconciliation to Comparable GAAP Measures

Cincinnati Financial Corporation prepares its public consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual and therefore is not reconciled to GAAP data.

Management uses certain non-GAAP and non-statutory financial measures to evaluate its primary business areas – property casualty insurance, life insurance and investments – when analyzing both GAAP and certain non-GAAP measures may improve understanding of trends in the underlying business, helping avoid incorrect or misleading assumptions and conclusions about the success or failure of company strategies. Management adjustments to GAAP measures generally: apply to non-recurring events that are unrelated to business performance and distort short-term results; involve values that fluctuate based on events outside of management’s control; or relate to accounting refinements that affect comparability between periods, creating a need to analyze data on the same basis.

·

Operating income: Operating income is calculated by excluding net realized investment gains and losses (defined as realized investment gains and losses after applicable federal and state income taxes) from net income. Management evaluates operating income to measure the success of pricing, rate and underwriting strategies. While realized investment gains or losses are integral to the company’s insurance operations over the long term, the determination to realize investment gains or losses in any period may be subject to management’s discretion and is independent of the insurance underwriting process. Also, under applicable GAAP accounting requirements, gains and losses can be recognized from certain changes in market values of securities and embedded derivatives without actual realization. Management believes that the level of realized investment gains or losses for any particular period, while it may be material, may not fully indicate the performance of ongoing underlying business operations in that period.

For these reasons, many investors and shareholders consider operating income to be one of the more meaningful measures for evaluating insurance company performance. Equity analysts who report on the insurance industry and the company generally focus on this metric in their analyses. The company presents operating income so that all investors have what management believes to be a useful supplement to GAAP information.

·

Statutory accounting rules: For public reporting, insurance companies prepare consolidated financial statements in accordance with GAAP. However, insurers also must calculate certain data according to statutory accounting rules as defined in the NAIC’s Accounting Practices and Procedures Manual, which may be, and has been, modified by various state insurance departments. Statutory data is publicly available, and various organizations use it to calculate aggregate industry data, study industry trends and compare insurance companies.

·

Written premium: Under statutory accounting rules, property casualty written premium is the amount recorded for policies issued and recognized on an annualized basis at the effective date of the policy. Management analyzes trends in written premium to assess business efforts. Earned premium, used in both statutory and GAAP accounting, is calculated ratably over the policy term. The difference between written and earned premium is unearned premium.

·

Written premium adjustment – statutory basis only: In 2002, the company refined its estimation process for matching property casualty written premiums to policy effective dates, which added $117 million to 2002 written premiums. To better assess ongoing business trends, management may exclude this adjustment when analyzing trends in written premiums and statutory ratios that make use of written premiums.

·

Codification: Adoption of Codification of Statutory Accounting Principles was required for Ohio-based insurance companies effective January 1, 2001. The adoption of Codification changed the manner in which the company recognized statutory property casualty written premiums. As a result, 2001 statutory written premiums included $402 million to account for unbooked premiums related to policies with effective dates prior to January 1, 2001. To better assess ongoing business trends, management excludes this $402 million when analyzing written premiums and statutory ratios that make use of written premiums.

·

Life insurance gross written premiums: In analyzing the life insurance company’s gross written premiums, management excludes five larger, single-pay life insurance policies (bank-owned life insurance or BOLIs) written in 2004, 2002, 2000 and 1999 to focus on the trend in premiums written through the independent agency distribution channel.

·

One-time charges or adjustments: Management analyzes earnings and profitability excluding the impact of one-time items.

○

In 2003, as the result of a settlement negotiated with a vendor, pretax results included the recovery of $23 million of a $39 million one-time, pretax charge incurred in 2000.

○

In 2000, the company recorded a one-time charge of $39 million, pre-tax, to write down previously capitalized costs related to the development of software to process property casualty policies.

○

In 2000, the company earned $5 million in interest in the first quarter from a $303 million single-premium BOLI policy that was booked at the end of 1999 and segregated as a separate account effective April 1, 2000. Investment income and realized investment gains and losses from separate accounts generally accrue directly to the contract holder and, therefore, are not included in the company’s consolidated financials.

2007 First-Quarter Supplement

 3

Cincinnati Financial Corporation
Quick Reference - First Quarter 2007
(all data shown is for the three months ended or as of March 31, 2007)
(Based on reported data - see Pages 25-27 for adjusted data)
(Dollars in millions except share data)
Revenues:				Benefits and expenses:
Commercial lines net written premiums	$	693		Commercial lines loss and loss expenses	$	354
Year-over-year percentage change		3.8	%	Year-over-year percentage change		0.0	%
Personal lines net written premiums	$	153		Personal lines loss and loss expenses	$	104
Year-over-year percentage change		(5.1)	%	Year-over-year percentage change		(12.0)	%
Property casualty net written premiums	$	846		Property casualty loss and loss expenses	$	458
Year-over-year percentage change		2.1	%	Year-over-year percentage change		(3.0)	%
Commercial lines net earned premiums	$	604		Life and accident and health losses and policy benefits	$	27
Year-over-year percentage change		3.7	%	Year-over-year percentage change		(9.8)	%
Personal lines net earned premiums	$	181		Operating expenses	$	262
Year-over-year percentage change		(7.6)	%	Year-over-year percentage change		1.4	%
Property casualty net earned premiums	$	785		Interest expenses	$	13
Year-over-year percentage change		0.8	%	Year-over-year percentage change		2.0	%
Life and accident and health net earned premiums	$	30		Total expenses	$	760
Year-over-year percentage change		15.7	%	Year-over-year percentage change		(1.7)	%
Investment income	$	148		Income before income taxes	$	271
Year-over-year percentage change		7.1	%	Year-over-year percentage change		(67.5)	%
Realized gains on investments	$	62		Total income tax	$	77
Year-over-year percentage change		(90.6)	%	Year-over-year percentage change		(72.7)	%
Other income	$	6		Effective tax rate		28.4	%
Year-over-year percentage change		32.4	%
Total revenues	$	1,031		Ratios:
Year-over-year percentage change		(35.9)	%
				Commercial lines GAAP combined ratio		88.9	%
Income:				Personal lines GAAP combined ratio		92.0	%
				Property casualty GAAP combined ratio		89.6	%
Operating income	$	153
Year-over-year percentage change		16.4	%	Commercial lines STAT combined ratio		86.5	%
Net realized investment gains and losses	$	41		Personal lines STAT combined ratio		93.5	%
Year-over-year percentage change		(90.2)	%	Property casualty STAT combined ratio		87.7	%
Net income	$	194
Year-over-year percentage change		(64.8)	%	Return on equity based upon net income		11.5	%
				Return on equity based upon operating income		9.1	%
Per share (diluted):
				Balance Sheet:
Operating income	$	0.88
Year-over-year percentage change		18.9	%	Fixed maturity investments	$	5,864
Net realized investment gains and losses	$	0.23		Equity securities		7,687
Year-over-year percentage change		(90.4)	%	Short-term investments		19
Net income	$	1.11		Other invested assets		71
Year-over-year percentage change		(64.5)	%	Total invested assets	$	13,641
Book value	$	39.08
Year-over-year percentage change		9.0	%	Property casualty and life loss and loss expense reserves	$	3,928
Weighted average shares -- diluted		174,274,157		Total debt		840
Year-over-year percentage change		(1.1)	%	Shareholders equity		6,708

2007 First-Quarter Supplement

 4

Cincinnati Financial Corporation
Consolidated Statements of Income
		For the Three Months Ended March 31,
		2007		2006		Change	% Change
Revenues:
Premiums earned:
Property casualty	$	827,290,658	$	816,042,728	$	11,247,930	1.38
Life		38,946,474		34,874,544		4,071,930	11.68
Accident health		1,758,851		1,733,897		24,954	1.44
Premiums ceded		(53,348,919)		(48,610,706)		(4,738,213)	9.75
Total premiums earned		814,647,064		804,040,463		10,606,601	1.32
Investment income		148,394,366		138,533,053		9,861,313	7.12
Realized gain on investments		62,178,232		660,230,900		(598,052,668)	(90.58)
Other income		5,688,868		4,297,510		1,391,358	32.38
Total revenues	$	1,030,908,530	$	1,607,101,926	$	(576,193,396)	(35.85)
Benefits & expenses:
Losses & policy benefits	$	515,031,815	$	523,561,864	$	(8,530,049)	(1.63)
Reinsurance recoveries		(30,808,929)		(22,275,639)		(8,533,290)	38.31
Commissions		170,152,772		165,724,962		4,427,810	2.67
Other operating expenses		84,040,679		80,153,365		3,887,314	4.85
Interest expense		13,092,923		12,840,294		252,629	1.97
Taxes, licenses & fees		19,942,931		24,265,452		(4,322,521)	(17.81)
Incr deferred acq expense		(15,654,691)		(14,459,113)		(1,195,578)	8.27
Other expenses		4,163,281		3,332,207		831,074	24.94
Total expenses	$	759,960,781	$	773,143,392	$	(13,182,611)	(1.71)
Income before income taxes	$	270,947,749	$	833,958,534	$	(563,010,785)	(67.51)
Provision for income taxes:
Current operating income	$	55,525,989	$	52,521,171	$	3,004,818	5.72
Realized investments gains and losses		21,059,042		239,649,184		(218,590,142)	(91.21)
Deferred		234,546		(10,198,514)		10,433,060	(102.30)
Total income taxes	$	76,819,577	$	281,971,841	$	(205,152,264)	(72.76)
Net income	$	194,128,172	$	551,986,693	$	(357,858,521)	(64.83)
Comprehensive net income	$	12,947,899	$	240,437,206	$	(227,489,307)	(94.61)
Operating income	$	153,008,982	$	131,404,977	$	21,604,005	16.44
Net realized investments gains and losses	$	41,119,190	$	420,581,716	$	(379,462,526)	(90.22)
Net income per share:
Operating income	$	0.88	$	0.75	$	0.13	17.33
Net realized investments gains       and losses		0.24		2.42		(2.18)	(90.08)
Net income per share (basic)	$	1.12	$	3.17	$	(2.05)	(64.67)
Operating income	$	0.88	$	0.74	$	0.14	18.92
Net realized investments gains       and losses		0.23		2.39		(2.16)	(90.38)
Net income per share (diluted)	$	1.11	$	3.13	$	(2.02)	(64.54)
Dividends per share:
Paid	$	0.335	$	0.305	$	0.03	9.84
Declared		0.355		0.335		0.02	5.97
Number of shares:
Weighted avg - basic		172,648,988		174,178,090		(1,529,102)	(0.88)
Weighted avg - diluted		174,274,157		176,127,404		(1,853,247)	(1.05)

2007 First-Quarter Supplement

 5

Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Three Months Ended March 31, 2007
		Total		CFC		CIC GROUP		CLIC		CFC-I		CINFIN		ELIM
Revenues:
Premiums earned:
Property casualty	$	827,290,658	$	-	$	827,572,247	$	-	$	-	$	-	$	(281,589)
Life		38,946,474		-		-		38,946,474		-		-		-
Accident health		1,758,851		-		-		1,758,851		-		-		-
Premiums ceded		(53,348,919)		-		(43,062,577)		(10,286,342)		-		-		-
Total earned premium		814,647,064		-		784,509,670		30,418,983		-		-		(281,589)
Investment income		148,394,366		23,901,549		96,609,154		28,312,584		610		60,444		(489,975)
Realized gain on investments		62,178,232		20,568,924		29,908,765		8,144,413		-		(7,639)		3,563,769
Other income		5,688,868		2,414,799		1,587,659		1,365,571		2,767,261		623,172		(3,069,594)
Total revenues	$	1,030,908,530	$	46,885,272	$	912,615,248	$	68,241,551	$	2,767,871	$	675,977	$	(277,389)
Benefits & expenses:
Losses & policy benefits	$	515,031,815	$	-	$	478,692,221	$	36,890,212	$	-	$	-	$	(550,618)
Reinsurance recoveries		(30,808,929)		-		(21,156,004)		(9,652,925)		-		-		-
Commissions		170,152,772		-		161,213,497		8,939,275		-		-		-
Other operating expenses		84,040,679		5,184,101		73,340,516		7,485,553		959,996		250,608		(3,180,095)
Interest expense		13,092,923		12,359,761		-		-		744,031		-		(10,869)
Taxes, licenses & fees		19,942,931		306,756		18,655,793		946,862		18,075		15,445		-
Incr deferred acq expenses		(15,654,691)		-		(11,718,254)		(3,936,437)		-		-		-
Other expenses		4,163,281		-		4,163,217		64		-		-		-
Total expenses	$	759,960,781	$	17,850,618	$	703,190,986	$	40,672,604	$	1,722,102	$	266,053	$	(3,741,582)
Income before income taxes	$	270,947,749	$	29,034,654	$	209,424,262	$	27,568,947	$	1,045,769	$	409,924	$	3,464,193
Provision for income taxes:
Current operating income	$	55,525,989	$	1,638,528	$	50,616,959	$	2,700,754	$	417,915	$	151,833	$	-
Capital gains/losses		21,059,042		7,554,673		10,633,068		2,870,544		-		757		-
Deferred		234,546		710,111		(5,755,376)		4,059,429		11,579		(3,665)		1,212,468
Total income tax	$	76,819,577	$	9,903,312	$	55,494,651	$	9,630,727	$	429,494	$	148,925	$	1,212,468
Net income - current year	$	194,128,172	$	19,131,342	$	153,929,611	$	17,938,220	$	616,275	$	260,999	$	2,251,725
Net income - prior year	$	551,986,693	$	269,706,489	$	245,881,648	$	35,063,666	$	319,315	$	325,708	$	689,867
Change in net income		-64.8%		-92.9%		-37.4%		-48.8%		93.0%		-19.9%

2007 First-Quarter Supplement

 6

Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Three Months Ended March 31, 2006
	Total		CFC		CIC GROUP		CLIC		CFC-I		CINFIN		ELIM
Revenues:
Premiums earned:
Property casualty	$	816,042,728	$	-	$	816,236,753	$	-	$	-	$	-	$	(194,025)
Life		34,874,544		-		-		34,874,544		-		-		-
Accident health		1,733,897		-		-		1,733,897		-		-		-
Premiums ceded		852,651,169		-		816,236,753		36,608,441		-		-		(194,025)
Total earned premium		804,040,463		-		777,946,657		26,287,831		-		-		(194,025)
Investment income		138,533,053		23,676,422		89,315,960		26,275,186		-		44,602		(779,117)
Realized gain on investments		660,230,900		410,816,802		206,169,965		42,334,256		-		339		909,538
Other income		4,297,510		2,488,780		665,946		746,054		2,797,693		576,426		(2,977,389)
Total revenues	$	1,607,101,926	$	436,982,004	$	1,074,098,528	$	95,643,327	$	2,797,693	$	621,367	$	(3,040,993)
Benefits & expenses:
Losses & policy benefits	$	524,355,214	$	-	$	494,777,921	$	30,127,971	$	-	$	-	$	(550,678)
Reinsurance recoveries		(23,068,989)		-		(23,140,637)		71,648		-		-		-
Commissions		165,724,962		-		157,318,046		8,406,916		-		-		-
Other operating expenses		80,153,365		5,317,550		69,594,847		6,142,293		1,991,705		122,837		(3,015,867)
Interest expense		12,840,294		12,840,294		-		-		535,782		-		(535,782)
Taxes, licenses & fees		24,265,452		247,926		23,462,757		830,409		(287,529)		11,889		-
Incr deferred acq expenses		(14,459,113)		-		(9,516,708)		(4,942,405)		-		-		-
Other expenses		3,332,207		-		3,332,143		64		-		-		-
Total expenses	$	773,143,392	$	18,405,770	$	715,828,369	$	40,636,896	$	2,239,958	$	134,726	$	(4,102,327)
Income before income taxes	$	833,958,534	$	418,576,234	$	358,270,159	$	55,006,431	$	557,735	$	486,641	$	1,061,334
Provision for income taxes:
Current operating income	$	52,521,171	$	1,110,956	$	48,910,938	$	2,133,775	$	204,800	$	160,702	$	-
Capital gains/losses		239,649,184		152,547,228		72,285,085		14,816,990		-		(119)		-
Deferred		(10,198,514)		(4,788,439)		(8,807,512)		2,992,000		33,620		350		371,467
Total income tax	$	281,971,841	$	148,869,745	$	112,388,511	$	19,942,765	$	238,420	$	160,933	$	371,467
Net income - current year	$	551,986,693	$	269,706,489	$	245,881,648	$	35,063,666	$	319,315	$	325,708	$	689,867
Net income - prior year	$	144,356,404	$	8,460,899	$	123,801,916	$	10,414,582	$	847,765	$	282,744	$	548,498
Change in net income		282.4%		3087.7%		98.6%		236.7%		-62.3%		15.2%

2007 First-Quarter Supplement

 7

Cincinnati Financial Corporation
Consolidated Balance Sheets
(Dollars in millions except per share data)	March 31,	December 31,
	2007	2006
	(unaudited)
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2007—$5,785; 2006—$5,739)	$              5,864	$              5,805
Equity securities, at fair value (cost: 2007—$2,802; 2006—$2,621)	7,687	7,799
Short-term investments, at fair value (amortized cost: 2007—$19; 2006—$95)	19	95
Other invested assets	71	60
Total investments	13,641	13,759
Cash and cash equivalents	197	202
Securities lending collateral	984	-
Investment income receivable	117	121
Finance receivable	103	108
Premiums receivable	1,173	1,128
Reinsurance receivable	727	683
Prepaid reinsurance premiums	12	13
Deferred policy acquisition costs	467	453
Property and equipment, net, for company use (accumulated depreciation:  2007—$268; 2006—$261)	204	193
Other assets	85	58
Separate accounts	511	504
Total assets	$            18,221	$             17,222
Liabilities
Insurance reserves
Losses and loss expense	$              3,928	$              3,896
Life policy reserves	1,427	1,409
Unearned premiums	1,640	1,579
Securities lending payable	984	-
Other liabilities	652	533
Deferred income tax	1,531	1,653
Notes payable	49	49
6.125% senior debenture due 2034	371	371
6.90% senior debenture due 2028	28	28
6.92% senior debenture due 2028	392	392
Separate accounts	511	504
Total liabilities	11,513	10,414
Shareholders' equity
Common stock, par value-$2 per share; authorized: 2007-500 million shares, 2006-       500 million shares; issued: 2007-196 million shares, 2006-196 million shares	392	391
Paid-in capital	1,027	1,015
Retained earnings	2,923	2,786
Accumulated other comprehensive income	3,193	3,379
Treasury stock at cost (2007—24 million shares, 2006—23 million shares)	(827)	(763)
Total shareholders' equity	6,708	6,808
Total liabilities and shareholders' equity	$            18,221	$             17,222

2007 First-Quarter Supplement

 8

Cincinnati Financial Corporation
10-Year Net Income Reconciliation
(Dollars in millions except per share data)	Years ended December 31,
	2006			2005			2004			2003			2002			2001			2000			1999			1998			1997
Net income	$	930		$	602		$	584		$	374		$	238		$	193		$	118		$	255		$	242		$	299
One-time item		-			-			-			15			-			-			(25)			-			-			-
Net income before one-time item		930			602			584			389			238			193			93			255			242			299
Net realized investment gains and losses		434			40			60			(27)			(62)			(17)			(2)			-			43			45
Operating income before one-time item		496			562			524			416			300			210			95			255			199			254
Less catastrophe losses		(113)			(82)			(96)			(63)			(57)			(42)			(33)			(24)			(61)			(17)
Operating income before catastrophe losses and one-time item	$	609		$	644		$	620		$	479		$	357		$	252		$	128		$	279		$	260		$	271
Diluted per share data
Net income	$	5.30		$	3.40		$	3.28		$	2.10		$	1.32		$	1.07		$	0.67		$	1.37		$	1.28		$	1.61
One-time item		-			-			-			0.09			-			-			(0.14)			-			-			-
Net income before one-time item		5.30			3.40			3.28			2.01			1.32			1.07			0.81			1.37			1.28			1.61
Net realized investment gains and losses		2.48			0.23			0.34			(0.15)			(0.35)			(0.10)			(0.01)			-			0.23			0.26
Operating income before one-time item		2.82			3.17			2.94			2.16			1.67			1.17			0.82			1.37			1.05			1.35
Less catastrophe losses		(0.65)			(0.46)			(0.54)			(0.35)			(0.31)			(0.23)			(0.18)			(0.13)			(0.32)			(0.13)
Operating income before catastrophe losses and one-time item	$	3.47		$	3.63		$	3.48		$	2.51		$	1.98		$	1.40		$	1.00		$	1.50		$	1.37		$	1.48
Return on equity
Return on average equity		14.4	%		9.8	%		9.4	%		6.3	%		4.1	%		3.2	%		2.1	%		4.6	%		4.7	%		7.6	%
One-time item		-			-			-			(0.3)			-			-			0.4			-			-			-
Return on average equity before one-time item		14.4	%		9.8	%		9.4	%		6.0	%		4.1	%		3.2	%		2.5	%		4.6	%		4.7	%		7.6	%
Return on equity based on comprehensive income
ROE based on comprehensive income		16.4	%		1.6	%		4.6	%		13.8	%		(4.0)	%		2.5	%		13.1	%		1.9	%		19.6	%		42.6	%
One-time item		-			-			-			(0.3)			-			-			0.4			-			-			-
ROE based on comprehensive income before one-time item		16.4	%		1.6	%		4.6	%		13.5	%		(4.0)	%		2.5	%		13.5	%		1.9	%		19.6	%		42.6	%
Investment income
Investment income, net of expenses	$	570		$	526		$	492		$	465		$	445		$	421		$	415		$	387		$	368		$	349
BOLI		-			-			-			-			-			-			(5)			-			-			-
Investment income before BOLI	$	570		$	526		$	492		$	465		$	445		$	421		$	410		$	387		$	368		$	349
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.  Ratios are calculated based on whole dollar amounts.

2007 First-Quarter Supplement

 9

Cincinnati Financial Corporation
Quarterly Net Income Reconciliation
(In millions except per share data)	Three months ended													Six months ended			Nine months ended			Twelve months ended
	12/31/07	9/30/07	6/30/07	3/31/07		12/31/06		9/30/06		6/30/06		3/31/06		6/30/07	6/30/06		9/30/07	9/30/06		12/31/07	12/31/06
Net income				$	194	$	130	$	115	$	132	$	552		$	684		$	800		$	930
Net realized investment gains and losses					41		8		-		6		421			426			427			434
Operating income					153		122		115		126		131			258			373			496
Less catastrophe losses					(2)		(29)		(18)		(41)		(26)			(67)			(85)			(113)
Operating income before catastrophe losses				$	155	$	151	$	133	$	167	$	157		$	325		$	458		$	609
Diluted per share data
Net income				$	1.11	$	0.75	$	0.66	$	0.76	$	3.13		$	3.90		$	4.56		$	5.30
Net realized investment gains and losses					0.23		0.05		-		0.04		2.39			2.43			2.43			2.48
Operating income					0.88		0.70		0.66		0.72		0.74			1.47			2.13			2.82
Less catastrophe losses					(0.01)		(0.16)		(0.10)		(0.24)		(0.14)			(0.38)			(0.48)			(0.65)
Operating income before catastrophe losses				$	0.89	$	0.86	$	0.76	$	0.96	$	0.88		$	1.85	$	$	2.61		$	3.47
Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.  Ratios are calculated based on whole dollar amounts.  The sum of quarterly amounts may not equal the full year as each is computed independently.

2007 First-Quarter Supplement

 10

Cincinnati Financial Corporation
Top Holdings – Common Stocks
(Dollars in millions)	As of and for three months ended March 31, 2007
	Actual cost		Fair value		Percent of fair value		Earned dividend income
Fifth Third Bancorp	$	283	$	2,816	37.8	%	$	31
Exxon Mobil Corporation		112		621	8.3			3
The Procter & Gamble Company		203		472	6.3			2
National City Corporation		171		365	4.9			4
PNC Financial Services Group, Inc.		62		339	4.6			3
AllianceBernstein Holding L.P.		69		302	4.1			5
U.S. Bancorp		184		276	3.7			3
Johnson & Johnson		218		241	3.2			1
Wyeth		62		222	3.0			1
Wells Fargo & Company		103		194	2.6			2
Piedmont Natural Gas Company, Inc.		64		149	2.0			1
Sky Financial Group, Inc.		91		125	1.7			1
Wachovia Corp		102		103	1.4			1
All other common stock holdings		845		1,223	16.4			9
Total	$	2,569	$	7,448	100.0	%	$	67

2007 First-Quarter Supplement

 11

Cincinnati Insurance Group
GAAP Statements of Income
	For the Three Months Ended March 31,
		2007		2006		Change	% Change
Revenues:
Premiums earned:
Property casualty	$	827,572,247	$	816,236,753	$	11,335,494	1.39
Life		-		-		-	-
Accident health		-		-		-	-
Premiums ceded		(43,062,577)		(38,290,096)		(4,772,481)	12.46
Total premiums earned		784,509,670		777,946,657		6,563,013	0.84
Investment income		96,609,154		89,315,960		7,293,194	8.17
Realized gain on investments		29,908,765		206,169,965		(176,261,200)	(85.49)
Other income		1,587,659		665,946		921,713	138.41
Total revenues	$	912,615,248	$	1,074,098,528	$	(161,483,280)	(15.03)
Benefits & expenses:
Losses & policy benefits	$	478,692,221	$	494,777,921	$	(16,085,700)	(3.25)
Reinsurance recoveries		(21,156,004)		(23,140,637)		1,984,633	(8.58)
Commissions		161,213,497		157,318,046		3,895,451	2.48
Other operating expenses		73,340,516		69,594,847		3,745,669	5.38
Interest expense		-		-		-	-
Taxes, licenses & fees		18,655,793		23,462,757		(4,806,964)	(20.49)
Incr deferred acq expense		(11,718,254)		(9,516,708)		(2,201,546)	23.13
Other expenses		4,163,217		3,332,143		831,074	24.94
Total expenses	$	703,190,986	$	715,828,369	$	(12,637,383)	(1.77)
Income before income taxes	$	209,424,262	$	358,270,159	$	(148,845,897)	(41.55)
Provision for income taxes:
Current operating income	$	50,616,959	$	48,910,938	$	1,706,021	3.49
Current realized investments gains and losses		10,633,068		72,285,085		(61,652,017)	(85.29)
Deferred		(5,755,376)		(8,807,512)		3,052,136	(34.65)
Total income taxes	$	55,494,651	$	112,388,511	$	(56,893,860)	(50.62)
	$		$		$
Net income		153,929,611		245,881,648		(91,952,037)	(37.40)

2007 First-Quarter Supplement

 12

Cincinnati Insurance Group
Statutory Statements of Income
	For the Three Months Ended March 31,
	2007		2006		% Change
Underwriting income
Net premiums written	$	845,799,750	$	828,775,078	2.05
Unearned premiums increase		61,290,080		50,828,418	20.58
Earned premiums		784,509,670		777,946,660	0.84
Losses incurred		370,753,035		388,689,030	(4.61)
Allocated loss expenses incurred		39,076,308		33,233,518	17.58
Unallocated loss expenses incurred		47,706,874		49,714,738	(4.04)
Other underwriting expenses incurred		244,742,340		235,921,105	3.74
Workers compensation dividend incurred		3,649,164		3,917,858	(6.86)
Total underwriting deductions	$	705,927,721	$	711,476,249	(0.78)
Net underwriting gain (loss)		78,581,950		66,470,411	18.22
Investment income
Gross investment income earned		97,847,031		90,155,865	8.53
Net investment income earned		96,629,259		89,224,775	8.30
Net realized capital gains		19,559,182		134,243,729	(85.43)
Net investment gains (excl. subs)	$	116,188,441	$	223,468,504	(48.01)
Dividend from subsidiary		-		-	-
Net investment gains	$	116,188,441	$	223,468,504	(48.01)
Other income	$	1,516,535	$	509,014	197.94
Net income before federal income taxes	$	196,286,926	$	290,447,929	(32.42)
Federal and foreign income taxes incurred	$	49,751,322	$	48,138,557	3.35
Net income (statutory)	$	146,535,604	$	242,309,372	(39.53)
* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

2007 First-Quarter Supplement

 13

Cincinnati Insurance Group - Consolidated
Statutory Quarterly Analysis
(Based on reported data - see Page 25 for adjusted data)
(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/07	9/30/07	6/30/07	3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07	6/30/06			9/30/07	9/30/06			12/31/07	12/31/06
Net premiums written				$	846		$	755		$	780		$	814		$	829			$	1,643			$	2,423				$	3,178
Net premiums earned				$	785		$	802		$	791		$	793		$	778			$	1,571			$	2,362				$	3,164
Losses paid				$	365		$	375		$	366		$	379		$	345				727			$	1,094				$	1,469
Loss reserve change					6			4			66			60			42				101				167					172
Total losses incurred				$	371		$	379		$	432		$	439		$	387			$	828			$	1,261				$	1,641
Allocated loss expense paid					31			37			33			31			27				59				91					127
Allocated loss expense reserve change					8			35			8			7			6				13				20					56
Total allocated loss expense incurred				$	39		$	72		$	41		$	38		$	33			$	72			$	111				$	183
Unallocated loss expense paid					46			49			39			39			40				78				117					167
Unallocated loss expense reserve change					2			2			4			3			10				12				15					17
Total unallocated loss expense incurred				$	48		$	51		$	43		$	42		$	50			$	90			$	132				$	184
Underwriting expenses incurred					248			251			243			232			240				471				715					965
Underwriting profit (loss)				$	79		$	49		$	32		$	42		$	67			$	110			$	143				$	191
Loss Detail
Losses $1 million or more				$	50		$	63		$	61		$	46		$	32			$	79			$	139				$	203
Losses $250 thousand to $1 million					48			43			49			48			38				86				135					178
Development and case reserve increases    of $250,000 or more					53			64			49			52			49				102				151					215
Large losses subtotal				$	151		$	170		$	159		$	146		$	119			$	267			$	425				$	596
IBNR incurred					7			(57)			11			(5)			6				1				11					(47)
Catastrophe losses incurred					3			44			27			64			39				103				131					175
Remaining incurred					210			222			235			234			223				457				694					917
Total losses incurred				$	371		$	379		$	432		$	439		$	387			$	828			$	1,261				$	1,641
Ratio Data
Loss ratio					47.2	%		47.2	%		54.8	%		55.4	%		49.9	%			52.7	%			53.4	%				51.9	%
Allocated loss expense ratio					5.0			9.0			5.0			4.8			4.3				4.6				4.7					5.8
Unallocated loss expense ratio					6.1			6.4			5.4			5.1			6.4				5.7				5.6					5.8
Net underwriting expense ratio					29.4			33.3			31.2			28.4			29.0				28.7				29.5					30.4
Statutory combined ratio					87.7	%		95.9	%		96.4	%		93.7	%		89.6	%			91.7	%			93.2	%				93.9	%
Statutory combined ratio excluding       catastrophes					87.3	%		90.4	%		92.9	%		85.7	%		84.6	%			85.1	%			87.7	%				88.4	%
Loss Ratio
Losses $1 million or more					6.4	%		7.9	%		7.6	%		6.0	%		4.2	%			5.1	%			5.9	%				6.4	%
Losses $250 thousand to $1 million					6.0			5.3			6.2			6.0			4.9				5.5				5.7					5.6
Development and case reserve increases    of $250,000 or more					6.8			8.0			6.3			7.4			6.3				6.9				6.4					6.8
Large losses subtotal					19.2	%		21.2	%		20.1	%		19.4	%		15.4	%			17.5	%			18.0	%				18.8	%
IBNR incurred					1.0			(7.2)			1.3			1.3			0.8				1.1				0.5					(1.4)
Total catastrophe losses incurred					0.4			5.5			3.5			8.0			5.0				6.5				5.5					5.5
Remaining incurred					26.6			27.7			29.9			26.7			28.7				27.6				29.4					29.0
Total loss ratio					47.2	%		47.2	%		54.8	%		55.4	%		49.9	%			52.7	%			53.4	%				51.9	%
Loss Claim Count
Losses $1 million or more					28			33			32			26			14				40				72					105
Losses $250 thousand to $1 million					108			97			103			88			95				183				286					383
Development and case reserve increases    of $250,000 or more					93			94			104			85			85				170				274					368
Large losses total					229			224			239			199			194				393				632					856
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. *NM – Not meaningful *Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

2007 First-Quarter Supplement

 14

Cincinnati Insurance Group - Commercial Lines
Statutory Quarterly Analysis
(Based on reported data - see Page 26 for adjusted data)
(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/07	9/30/07	6/30/07	3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07	6/30/06			9/30/07	9/30/06			12/31/07	12/31/06
Net premiums written				$	693		$	589		$	582		$	603		$	668			$	1,271			$	1,853				$	2,442
Net premiums earned				$	604		$	619		$	602		$	599		$	582			$	1,181			$	1,783				$	2,402
Losses paid				$	260		$	256		$	247		$	251		$	233			$	485			$	732				$	988
Loss reserve change					23			5			63			53			53				105				168					174
Total losses incurred				$	283		$	261		$	310		$	304		$	286			$	590			$	900				$	1,162
Allocated loss expense paid					28			33			30			28			24				52				81					114
Allocated loss expense reserve change					8			37			7			6			5				12				19					56
Total allocated loss expense incurred				$	36		$	70		$	37		$	34		$	29			$	64			$	100				$	170
Unallocated loss expense paid					32			34			27			27			28				54				81					116
Unallocated loss expense reserve change					3			3			3			3			10				13				15					18
Total unallocated loss expense incurred				$	35		$	37		$	30		$	30		$	38			$	67			$	96				$	134
Underwriting expenses incurred					193			194			185			172			179				349				536					727
Underwriting profit (loss)				$	57		$	57		$	40		$	59		$	50			$	111			$	151				$	209
Loss Detail
Losses $1 million or more				$	45		$	59		$	51		$	40		$	30			$	70			$	121				$	180
Losses $250 thousand to $1 million					38			35			37			39			28				67				104					139
Development and case reserve increases    of $250,000 or more					49			58			45			45			44				90				135					193
Large losses subtotal				$	132		$	152		$	133		$	124		$	102			$	227			$	360				$	512
IBNR incurred					7			(45)			10			(6)			6				-				10					(36)
Catastrophe losses incurred					10			11			14			34			29				63				77					89
Remaining incurred					134			143			153			152			149				300				453					597
Total losses incurred				$	283		$	261		$	310		$	304		$	286			$	590			$	900				$	1,162
Ratio Data
Loss ratio					46.8	%		42.2	%		51.5	%		50.7	%		49.2	%			50.0	%			50.5	%				48.4	%
Allocated loss expense ratio					5.9			11.3			6.0			5.7			5.1				5.4				5.6					7.1
Unallocated loss expense ratio					6.0			6.0			5.0			4.9			6.5				5.7				5.4					5.5
Net underwriting expense ratio					27.8			32.9			31.6			28.3			26.7				27.5				28.8					29.8
Statutory combined ratio					86.5	%		92.4	%		94.1	%		89.6	%		86.5	%			88.6	%			90.3	%				90.8	%
Statutory combined ratio excluding       catastrophes					84.7	%		90.5	%		91.7	%		84.0	%		82.4	%			83.3	%			86.0	%				87.1	%
Loss Ratio
Losses $1 million or more					7.4	%		9.6	%		8.5	%		6.6	%		5.2	%			5.9	%			6.8	%				7.5	%
Losses $250 thousand to $1 million					6.2			5.6			6.1			6.5			4.8				5.7				5.8					5.8
Development and case reserve increases    of $250,000 or more					8.2			9.4			7.5			7.6			7.6				7.6				7.6					8.0
Large losses subtotal					21.8	%		24.6	%		22.1	%		20.7	%		17.6	%			19.2	%			20.2	%				21.3	%
IBNR incurred					1.2			(7.3)			1.7			(1.0)			1.0				-				0.6					(1.5)
Total catastrophe losses incurred					1.8			1.9			2.3			5.6			5.1				5.3				4.3					3.7
Remaining incurred					22.0			23.0			25.4			25.4			25.5				25.5				25.4					24.9
Total loss ratio					46.8	%		42.2	%		51.5	%		50.7	%		49.2	%			50.0	%			50.5	%				48.4	%
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. *NM – Not meaningful *Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the regulatory bodies.

2007 First-Quarter Supplement

 15

Cincinnati Insurance Group - Personal Lines
Statutory Quarterly Analysis
(Based on reported data - see Page 27 for adjusted data)
(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/07	9/30/07	6/30/07	3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07	6/30/06			9/30/07	9/30/06			12/31/07	12/31/06
Net premiums written				$	153		$	166		$	198		$	211		$	161			$	372			$	570			$	736
Net premiums earned				$	181		$	183		$	189		$	194		$	196			$	390			$	579			$	762
Losses paid				$	105		$	119		$	119		$	128		$	112			$	242			$	362			$	481
Loss reserve change					(17)			(1)			3			7			(11)				(4)				(1)				(2)
Total losses incurred				$	88		$	118		$	122		$	135		$	101			$	238			$	361			$	479
Allocated loss expense paid					3			4			3			3			4				7				10				13
Allocated loss expense reserve change					-			(2)			1			1			1				1				1				-
Total allocated loss expense incurred				$	3		$	2		$	4		$	4		$	5			$	8			$	11			$	13
Unallocated loss expense paid					14			15			12			12			12				24				36				51
Unallocated loss expense reserve change					(1)			(1)			1			-			-				(1)				-				(1)
Total unallocated loss expense incurred				$	13		$	14		$	13		$	12		$	12			$	23			$	36			$	50
Underwriting expenses incurred					55			57			58			60			61				122				179				238
Underwriting profit (loss)				$	22		$	(8)		$	(8)		$	(17)		$	17			$	(1)			$	(8)			$	(18)
Loss Detail
Losses $1 million or more				$	5		$	4		$	10		$	6		$	2			$	9			$	18			$	23
Losses $250 thousand to $1 million					10			8			12			9			10				19				31				39
Development and case reserve increases    of $250,000 or more					4			6			4			7			5				12				16				22
Large losses subtotal				$	19		$	18		$	26		$	22		$	17			$	40			$	65			$	84
IBNR incurred					-			(12)			1			1			-				1				1				(11)
Catastrophe losses incurred					(7)			33			13			30			10				40				54				86
Remaining incurred					76			79			82			82			74				157				241				320
Total losses incurred				$	88		$	118		$	122		$	135		$	101			$	238			$	361			$	479
Ratio Data
Loss ratio					48.9	%		64.4	%		65.1	%		70.0	%		52.2	%			61.1	%			62.4	%			62.9	%
Allocated loss expense ratio					1.8			1.2			1.9			2.1			1.7				1.9				2.0				1.7
Unallocated loss expense ratio					6.6			7.8			6.6			5.8			6.2				6.0				6.1				6.6
Net underwriting expense ratio					36.2			34.3			30.4			28.5			38.0				32.6				31.8				32.4
Statutory combined ratio					93.5	%		107.7	%		104.0	%		106.4	%		98.1	%			101.6	%			102.3	%			103.6	%
Statutory combined ratio excluding       catastrophes					97.6	%		89.8	%		96.9	%		90.8	%		93.1	%			91.3	%			93.1	%			92.3	%
Loss Ratio
Losses $1 million or more					3.0	%		2.2	%		5.0	%		3.5	%		1.2	%			2.3	%			3.2	%			3.0	%
Losses $250 thousand to $1 million					5.4			4.5			6.4			4.4			5.3				4.9				5.4				5.2
Development and case reserve increases    of $250,000 or more					2.2			3.4			2.1			3.5			2.7				3.1				2.8				2.9
Large losses subtotal					10.6	%		10.1	%		13.5	%		11.4	%		9.2	%			10.3	%			11.4	%			11.1	%
IBNR incurred					-			(6.8)			0.1			0.7			-				0.3				0.3				(1.5)
Total catastrophe losses incurred					(4.1)			17.9			7.1			15.6			5.0				10.3				9.2				11.3
Remaining incurred					42.4			43.2			44.4			42.3			38.0				40.2				41.5				42.0
Total loss ratio					48.9	%		64.4	%		65.1	%		70.0	%		52.2	%			61.1	%			62.4	%			62.9	%
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. *NM – Not meaningful *Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

2007 First-Quarter Supplement

 16

Cincinnati Insurance Group
Direct Written Premiums by Risk State by Line of Business for the Three Months Ended March 31, 2007
(Dollars in millions)
																					3/31/2007		3/31/2006
	Comm		Comm		Comm		Workers'		Specialty		Surety &		Mach. &		Pers		Home		Other		Agency		Agency		Change
State	Casualty		Prop		Auto		Comp		Packages		Exec Risk		Equip		Auto		Owner		Personal		Direct		Direct		%
AL	$	5.6	$	4.5	$	2.3	$	0.4	$	2.0	$	0.5	$	0.1	$	3.4	$	4.8	$	1.0	$	24.5	$	21.7	12.7
AZ		3.9		1.8		2.3		0.1		0.3		0.1		0.1		0.0		0.0		0.0		8.7		8.0	7.7
AR		2.7		2.0		1.5		1.7		1.2		0.5		0.1		0.6		0.7		0.2		11.3		12.4	(9.5)
DE		0.2		0.2		0.1		0.7		0.0		0.0		0.0		0.0		0.0		0.0		1.4		0.6	94.0
FL		11.0		7.2		3.5		0.6		1.0		0.5		0.2		3.2		7.3		1.0		35.6		29.4	21.3
GA		8.0		5.1		5.7		3.5		1.9		1.7		0.2		7.1		5.8		1.5		40.5		39.4	2.8
ID		2.4		0.9		1.4		0.0		0.3		0.4		0.1		0.0		0.0		0.0		5.6		4.1	29.5
IL		23.4		13.2		10.1		17.2		3.6		1.8		0.7		5.1		3.9		1.5		80.5		80.8	(0.4)
IN		16.8		11.5		8.5		9.6		2.2		1.6		0.7		5.7		5.2		1.4		63.3		63.2	(0.1)
IA		6.5		3.5		2.6		7.2		1.3		0.7		0.3		0.9		0.9		0.4		24.3		23.5	2.7
KS		2.7		2.7		1.2		2.3		0.9		0.4		0.1		1.0		1.2		0.3		12.8		11.7	10.5
KY		5.9		5.4		4.1		0.9		1.3		0.7		0.2		4.1		3.1		0.9		26.5		25.5	3.8
MD		4.1		1.6		3.2		2.8		0.3		0.5		0.1		0.0		0.3		0.1		13.0		10.6	23.3
MI		10.6		6.7		5.0		5.6		3.3		1.4		0.4		3.0		3.0		0.7		39.9		43.5	(8.3)
MN		8.1		5.0		3.3		2.8		1.4		0.7		0.3		1.5		1.3		0.9		25.3		23.2	8.7
MO		8.2		5.4		3.3		5.1		1.6		0.4		0.3		0.6		1.0		0.2		26.1		24.4	7.0
MT		3.9		1.9		2.0		0.1		0.3		0.1		0.1		0.0		0.0		0.0		8.4		7.1	17.4
NE		2.0		1.5		0.8		2.1		0.5		0.4		0.1		0.2		0.3		0.1		8.0		9.7	(18.9)
NH		0.9		0.7		0.4		0.9		0.2		0.1		0.0		0.2		0.2		0.1		3.6		3.6	(0.3)
NY		7.7		1.6		2.2		0.9		0.3		1.0		0.1		0.0		0.0		0.0		13.8		11.2	23.1
NC		12.2		7.5		5.9		7.9		3.2		1.9		0.3		0.3		0.3		0.6		40.2		36.8	9.0
ND		1.4		1.0		0.7		0.0		0.2		0.2		0.0		0.1		0.1		0.0		3.9		3.7	0.7
OH		47.9		25.6		18.8		(0.4)		5.7		5.9		1.2		27.7		18.9		6.6		158.0		163.1	(3.1)
PA		14.3		8.2		8.5		15.9		2.6		1.8		0.5		1.7		1.2		0.8		55.6		55.0	1.0
SC		3.8		2.2		2.1		1.6		0.6		0.6		0.1		0.0		0.0		0.1		11.1		10.2	9.7
SD		1.2		0.7		0.7		1.6		0.1		0.2		0.0		0.0		0.0		0.0		4.7		4.2	9.2
TN		7.7		4.9		4.8		4.3		2.6		1.1		0.3		1.8		1.9		0.7		30.3		29.9	1.0
UT		2.9		1.1		1.3		0.1		0.1		0.5		0.1		0.0		0.0		0.0		6.1		4.1	46.8
VT		1.3		1.0		0.7		2.0		0.3		0.1		0.1		0.2		0.2		0.1		5.9		5.5	10.7
VA		10.7		8.0		7.7		8.0		1.3		1.1		0.3		2.1		1.6		0.6		41.4		40.3	2.7
WV		2.8		1.8		1.7		0.0		0.6		0.2		0.1		0.0		0.2		0.1		7.5		7.2	5.7
WI		9.3		5.0		3.3		9.6		1.3		0.7		0.4		2.0		1.5		0.7		33.8		36.7	7.4
All Other		2.6		1.1		1.2		1.4		0.0		0.3		0.0		0.0		0.1		0.0		6.8		6.0	22.8
Total Agency Direct	$	252.5	$	150.3	$	121.1	$	116.6	$	42.7	$	28.2	$	7.8	$	72.8	$	65.3	$	20.8	$	878.1	$	856.3	2.5
Other Direct		0.0		0.0		0.2		0.1		0.2		1.7		0.0		0.7		0.2		0.4		3.5		3.9	(11.7)
Total Direct	$	252.5	$	150.3	$	121.4	$	116.7	$	42.9	$	29.8	$	7.8	$	73.5	$	65.4	$	21.2	$	881.6	$	860.2	2.4

2007 First-Quarter Supplement

 17

Cincinnati Insurance Group
Quarterly Property Casualty Data - By Commercial Lines of Business
(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/07	9/30/07	6/30/07	3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07	6/30/06			9/30/07	9/30/06			12/31/07	12/31/06
Commercial Casualty
Written premiums				$	245		$	204		$	196		$	209		$	228			$	408			$	590			$	779
Earned premiums					209			219			207			208			197				373				564				759
Loss and loss expenses ratio					53.5	%		58.8	%		49.4	%		51.8	%		51.3	%			53.7	%			51.6	%			39.7	%
Less catastrophe loss ratio					-			-			-			-			-				-				-				-
Loss and loss expenses    excluding catastrophe loss ratio					53.5	%		58.8	%		49.4	%		51.8	%		51.3	%			53.7	%			51.6	%			39.7	%
Commercial property:
Written premiums				$	138		$	124		$	126		$	122		$	134			$	261			$	382			$	502
Earned premiums					123			123			123			123			121				247				366				493
Loss and loss expenses ratio					53.6	%		47.0	%		54.9	%		55.8	%		72.6	%			53.6	%			65.6	%			62.0	%
Less catastrophe loss ratio					6.9			7.1			9.9			15.9			22.7				2.5				15.3				14.1
Loss and loss expenses   excluding catastrophe loss ratio					46.7	%		39.9	%		45.0	%		39.9	%		49.9	%			51.1	%			50.3	%			47.9	%
Commercial auto:
Written premiums				$	124		$	105		$	105		$	115		$	126			$	233			$	341			$	448
Earned premiums					113			116			113			112			112				226				340				457
Loss and loss expenses ratio					64.6	%		58.5	%		72.8	%		57.0	%		57.7	%			59.0	%			59.6	%			60.1	%
Less catastrophe loss ratio					(0.2)			0.6			(0.5)			3.1			0.6				0.1				0.1				0.1
Loss and loss expenses    excluding catastrophe loss ratio					64.8	%		57.9	%		73.3	%		53.9	%		57.1	%			58.9	%			59.5	%			60.0	%
Workers' compensation:
Written premiums				$	113		$	91		$	85		$	91		$	111			$	182			$	258			$	338
Earned premiums					92			95			93			90			88				161				244				328
Loss and loss expenses ratio					76.5	%		89.3	%		90.3	%		83.1	%		78.6	%			76.9	%			75.9	%			90.9	%
Less catastrophe loss ratio					-			-			-			-			-				-				-				-
Loss and loss expenses   excluding catastrophe loss ratio					76.5	%		89.3	%		90.3	%		83.1	%		78.6	%			76.9	%			75.9	%			90.9	%
Specialty package:
Written premiums				$	41		$	35		$	35		$	34		$	40			$	71			$	105			$	138
Earned premiums					36			35			35			35			36				68				103				137
Loss and loss expenses ratio					69.6	%		44.9	%		74.2	%		82.1	%		64.3	%			72.4	%			71.5	%			67.0	%
Less Catastrophe loss ratio					7.0			5.8			7.1			29.2			3.6				3.1				5.4				5.2
Loss and loss expenses   excluding catastrophe loss ratio					62.6	%		39.1	%		67.1	%		52.9	%		60.7	%			69.3	%			66.1	%			61.8	%
Surety and executive risk:
Written premiums				$	25		$	23		$	28		$	24		$	22			$	38			$	63			$	85
Earned premiums					24			24			24			24			21				38				59				80
Loss and loss expenses ratio					24.0	%		36.3	%		47.3	%		89.6	%		26.5	%			16.9	%			22.0	%			34.2	%
Less catastrophe loss ratio					-			-			-			-			-				-				-				-
Loss and loss expenses   excluding catastrophe loss ratio					24.0	%		36.3	%		47.3	%		89.6	%		26.5	%			16.9	%			22.0	%			34.2	%
Machinery and equipment:
Written premiums				$	7		$	7		$	7		$	8		$	7			$	15			$	22			$	29
Earned premiums					7			7			7			7			7				14				20				27
Loss and loss expense ratio					28.2	%		62.4	%		45.2	%		27.0	%		32.2	%			29.6	%			34.8	%			42.0	%
Less catastrophe loss ratio					(1.6)			(0.5)			2.1			-			-				0.1				0.8				0.4
Loss and loss expense   excluding catastrophe loss ratio					29.8	%		62.9	%		43.1	%		27.0	%		32.2	%			29.5	%			34.0	%			41.6	%
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.

2007 First-Quarter Supplement

 18

Cincinnati Insurance Group
Quarterly Property Casualty Data - By Personal Lines of Business
(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/07	9/30/07	6/30/07	3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07	6/30/06			9/30/07	9/30/06			12/31/07	12/31/06
Personal auto:
Written premiums				$	72		$	79		$	96		$	104		$	79			$	184			$	279			$	359
Earned premiums					88			91			95			98			101				199				294				385
Loss and loss expenses ratio					66.5	%		74.3	%		60.6	%		65.8	%		60.1	%			62.9	%			62.2	%			65.0	%
Less catastrophe loss ratio					(2.3)			5.7			1.4			3.6			0.8				2.2				2.0			0	2.8
Loss and loss expenses    excluding catastrophe loss ratio					68.8	%		68.6	%		59.2	%		62.2	%		59.3	%			60.7	%			60.2	%			62.2	%
Homeowner:
Written premiums				$	61		$	66		$	79		$	83		$	62			$	144			$	224			$	290
Earned premiums					71			70			72			74			73				146				219				289
Loss and loss expenses ratio					50.0	%		80.8	%		93.9	%		93.1	%		64.0	%			78.6	%			83.7	%			83.0	%
Less catastrophe loss ratio					(7.5)			36.0			15.0			33.1			11.1				22.1				19.8				23.7
Loss and loss expenses   excluding catastrophe loss ratio					57.5	%		44.8	%		78.9	%		60.0	%		52.9	%			56.5	%			63.9	%			59.3	%
Other personal:
Written premiums				$	20		$	21		$	23		$	24		$	20			$	44			$	67			$	87
Earned premiums					22			22			22			22			22				45				66				88
Loss and loss expenses ratio					43.4	%		45.6	%		63.3	%		80.9	%		47.4	%			64.2	%			63.9	%			59.4	%
Less Catastrophe loss ratio					(0.1)			9.9			5.2			10.8			3.8				7.4				6.6				7.4
Loss and loss expenses   excluding catastrophe loss ratio					43.5	%		35.7	%		58.1	%		70.1	%		43.6	%			56.8	%			57.3	%			52.0	%
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.

2007 First-Quarter Supplement

 19

Cincinnati Insurance Group
10-Year Property Casualty Data - Consolidated
(Dollars in millions)	Years ended December 31,
	2006			2005			2004			2003			2002			2001			2000			1999			1998			1997
Premiums
Adjusted written premiums (statutory)*	$	3,172		$	3,097		$	3,026		$	2,789		$	2,496		$	2,188		$	1,936		$	1,681		$	1,558		$	1,472
Codification		-			-			-			-			-			402			(55)			-			-			-
Written premium adjustment -- statutory only		6			(21)			(29)			26			117			-			-			-			-			-
Reported written premiums (statutory)**		3,178			3,076			2,997			2,815			2,613			2,590			1,881			1,681			1,558			1,472
Unearned premiums change		(14)			(18)			(78)			(162)			(222)			(517)			(53)			(23)			(15)			(18)
Earned premiums (GAAP)	$	3,164		$	3,058		$	2,919		$	2,653		$	2,391		$	2,073		$	1,828		$	1,658		$	1,543		$	1,454
Year-over-year growth rate:
Adjusted written premiums (statutory)		2.4	%		2.3	%		8.5	%		11.7	%		14.0	%		13.0	%		15.2	%		7.9	%		5.8	%		6.4	%
Written premiums (statutory)		3.3	%		2.6	%		6.5	%		7.7	%		0.9	%		37.7	%		11.9	%		7.9	%		5.8	%		6.4	%
Earned premiums		3.5	%		4.8	%		10.0	%		11.0	%		15.3	%		13.4	%		10.3	%		7.5	%		6.1	%		6.4	%
Statutory combined ratio
Reported statutory combined ratio*		93.9	%		89.0			89.4	%		94.2	%		98.4	%		99.5	%		112.5	%		100.4	%		104.2	%		98.3	%
Codification		-			-			-			-			-			4.1			(0.9)			-			-			-
Written premium adjustment -- statutory only		nm			nm			nm			nm			1.2			-			-			-			-			-
One-time item		-			-			-			0.8			-			-			(1.7)			-			-			-
Statutory combined ratio (adjusted)		93.9	%		89.0	%		89.4	%		95.0	%		99.6	%		103.6	%		109.9	%		100.4	%		104.2	%		98.3	%
Less catastrophe losses		5.5			4.1			5.1			3.6			3.6			3.1			2.7			2.5			6.1
Statutory combined ratio excluding      catastrophe losses (adjusted)		88.4	%		84.9	%		84.3	%		91.4	%		96.0	%		100.5	%		107.2	%		97.9	%		98.1	%
Reported commission expense ratio*		18.7	%		19.3	%		19.2	%		17.6	%		15.9	%		13.9	%		17.4	%		17.4	%		17.6	%
Codification		-			-			-			-			-			2.6			(0.5)			-			-
Written premium adjustment -- statutory only		nm			nm			nm			nm			0.8			-			-			-			-
One-time item		-			-			-			-			-			-			-			-			-
Commission expense ratio (adjusted)		18.7	%		19.3	%		19.2	%		17.6	%		16.7	%		16.5	%		16.9	%		17.4	%		17.6	%
Reported other expense ratio*		11.7	%		10.5	%		10.1	%		8.9	%		9.6	%		8.7	%		12.6	%		11.4	%		11.9	%
Codification		-			-			-			-			-			1.5			(0.4)			-			-
Written premium adjustment -- statutory only		nm			nm			nm			nm			0.4			-			-			-			-
One-time item		-			-			-			0.8			-			-			(1.7)			-			-
Other expense ratio (adjusted)		11.7	%		10.5	%		10.1	%		9.7	%		10.0	%		10.2	%		10.5	%		11.4	%		11.9	%
Reported statutory expense ratio*		30.4	%		29.8	%		29.3	%		26.5	%		25.5	%		22.6	%		30.0	%		28.8	%		29.5	%
Codification		-			-			-			-			-			4.1			(0.9)			-			-
Written premium adjustment -- statutory only		nm			nm			nm			nm			1.2			-			-			-			-
One-time item		-			-			-			0.8			-			-			(1.7)			-			-
Statutory expense ratio (adjusted)		30.4	%		29.8	%		29.3	%		27.3	%		26.7	%		26.7	%		27.4	%		28.8	%		29.5	%
GAAP combined ratio
GAAP combined ratio		94.3	%		89.2	%		89.8	%		94.7	%		99.7	%		104.9	%		112.8	%		100.2	%		104.3	%		98.4	%
One-time item		-			-			-			0.8			-			-			(2.1)			-			-			-
GAAP combined ratio before one-time item		94.3	%		89.2	%		89.8	%		95.5	%		99.7	%		104.9	%		110.7	%		100.2	%		104.3	%		98.4	%
Written premiums to surplus
Adjusted premiums to statutory surplus ratio		0.672			0.739			0.721			1.002			1.067			0.864
Written premium adjustment		0.001			(0.005)			(0.007)			0.010			0.050			0.159
Reported premiums to statutory surplus ratio		0.673			0.734			0.714			1.012			1.117			1.023
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. *nm – Not meaningful *Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies. **Prior to 2001, property casualty written premiums were recognized as they were billed throughout the policy period. Effective January 1, 2001, written premiums have been recognized on an annualized basis at the effective date of the policy.  Written premiums for 2000 were reclassified to conform with the 2001 presentation; information was not readily available to reclassify earlier year statutory data. The growth rates in written premiums between 1999 and 2000 are overstated because 1999 premiums are shown on a billed basis.

2007 First-Quarter Supplement

 20

Cincinnati Insurance Group
6-Year Property Casualty Data - Commercial Lines
(Dollars in millions)	Years ended December 31,
	2006			2005			2004			2003			2002			2001
Premiums
Adjusted written premiums (statutory)*	$	2,435		$	2,306		$	2,209		$	2,009		$	1,795		$	1,551
Codification		-			-			-			-			-			276
Written premium adjustment – statutory only		7			(16)			(23)			22			110			-
Reported written premiums (statutory)	$	2,442		$	2,290		$	2,186		$	2,031		$	1,905		$	1,827
Unearned premiums change		(40)			(36)			(60)			(123)			(184)			(374)
Earned premiums (GAAP)	$	2,402		$	2,254		$	2,126		$	1,908		$	1,721		$	1,453
Year-over-year growth rate:
Adjusted written premiums (statutory)		5.6	%		4.4	%		10.0	%		11.9	%		15.8	%		16.9	%
Written premiums (statutory)		6.6	%		4.8	%		7.6	%		6.6	%		4.2	%		43.3	%
Earned premiums		6.6	%		6.0	%		11.4	%		10.8	%		18.6	%		17.9	%
Statutory combined ratio
Reported statutory combined ratio*		90.8	%		87.1			83.7	%		90.9	%		95.3	%		96.7	%
Codification		-			-			-			-			-			4.0
Written premium adjustment – statutory only		nm			nm			nm			nm			1.5			-
One-time item		-			-			-			0.7			-			-
Statutory combined ratio (adjusted)		90.8	%		87.1	%		83.7	%		91.6	%		96.8	%		100.7	%
Less catastrophe losses		3.7			3.4			3.4			2.2			2.3			1.9
Statutory combined ratio excluding      catastrophe losses (adjusted)		87.1	%		83.7	%		80.3	%		89.4	%		94.5	%		98.8	%
GAAP combined ratio
GAAP combined ratio		91.3	%		87.4	%		84.1	%		91.3	%		96.6	%		101.7	%
One-time item		-			-			-			0.8			-			-
GAAP combined ratio before one-time item		91.3	%		87.4	%		84.1	%		92.1	%		96.6	%		101.7	%
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. *nm – Not meaningful *Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

2007 First-Quarter Supplement

 21

Cincinnati Insurance Group
6-Year Property Casualty Data - Personal Lines
(Dollars in millions)	Years ended December 31,
	2006			2005			2004			2003			2002			2001
Premiums
Adjusted written premiums (statutory)*	$	737		$	791		$	817		$	780		$	701		$	637
Codification		-			-			-			-			-			126
Written premium adjustment – statutory only		(1)			(5)			(6)			4			7			-
Reported written premiums (statutory)	$	736		$	786		$	811		$	784		$	708		$	763
Unearned premiums change		26			18			(18)			(39)			(38)			(143)
Earned premiums (GAAP)	$	762		$	804		$	793		$	745		$	670		$	620
Year-over-year growth rate:
Adjusted written premiums (statutory)		(6.8)	%		(3.2)	%		4.7	%		12.0	%		9.8	%		4.6	%
Written premiums (statutory)		(6.4)	%		(3.1)	%		3.4	%		10.8	%		(7.2)	%		26.1	%
Earned premiums		(5.2)	%		1.4	%		6.4	%		11.2	%		8.1	%		4.0	%
Statutory combined ratio
Reported statutory combined ratio*		103.6	%		94.3			104.6	%		102.9	%		106.5	%		105.9	%
Codification		-			-			-			-			-			4.6
Written premium adjustment – statutory only		nm			nm			nm			nm			0.3			-
One-time item		-			-			-			1.0			-			-
Statutory combined ratio (adjusted)		103.6	%		94.3	%		104.6	%		103.9	%		106.8	%		110.5	%
Less catastrophe losses		11.3			6.3			9.7			7.3			7.1			5.8
Statutory combined ratio excluding      catastrophe losses (adjusted)		92.3	%		88.0	%		94.9	%		96.6	%		99.7	%		104.7	%
GAAP combined ratio
GAAP combined ratio		103.6	%		94.4	%		105.0	%		103.6	%		107.6	%		112.4	%
One-time item		-			-			-			1.1			-			-
GAAP combined ratio before one-time item		103.6	%		94.4	%		105.0	%		104.7	%		107.6	%		112.4	%
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. *nm – Not meaningful *Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

2007 First-Quarter Supplement

 22

Cincinnati Insurance Group
Quarterly Property Casualty Data - Consolidated
(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/07	9/30/07	6/30/07	3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07	6/30/06			9/30/07	9/30/06			12/31/07	12/31/06
Premiums
Adjusted written premiums (statutory)				$	811		$	785		$	787		$	804		$	796			$	1,600			$	2,387			$	3,172
Written premium adjustment –       statutory only					35			(30)			(7)			10			33				43				36				6
Reported written premiums (statutory)*				$	846		$	755		$	780		$	814		$	829			$	1,643			$	2,423			$	3,178
Unearned premiums change					(61)			47			11			(21)			(51)				(72)				(60)				(14)
Earned premiums				$	785		$	802		$	791		$	793		$	778			$	1,571			$	2,363			$	3,164
Statutory combined ratio
Statutory combined ratio					87.7	%		95.9	%		96.4	%		93.7	%		89.6	%			91.7	%			93.2	%			93.9	%
Less catastrophe losses					0.4			5.5			3.5			8.0			5.0				6.5				5.5				4.1
Statutory combined ratio        excluding catastrophe losses					87.3	%		90.4	%		92.9	%		85.7	%		84.6	%			85.2	%			87.7	%			89.8	%
Commission expense ratio					18.0	%		19.9	%		19.3	%		17.6	%		18.2	%			17.9	%			18.3	%			18.7	%
Other expense ratio					11.4	%		13.4	%		11.9	%		10.8	%		10.8	%			10.8	%			11.2	%			11.7	%
Statutory expense ratio					29.4	%		33.3	%		31.2	%		28.4	%		29.0	%			28.7	%			29.5	%			30.4	%
GAAP combined ratio
GAAP combined ratio					89.6	%		94.5	%		96.1	%		94.5	%		92.0	%			93.3	%			94.2	%			94.3	%
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.  Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the
full year as each is computed independently.
*nm – Not meaningful
*Statutory data prepared in accordance with statutory accounting rules ad defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

2007 First-Quarter Supplement

 23

Cincinnati Insurance Group
Quarterly Property Casualty Data - Commercial Lines
(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/07	9/30/07	6/30/07	3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07	6/30/06			9/30/07	9/30/06			12/31/07	12/31/06
Premiums
Adjusted written premiums (statutory)				$	658		$	618		$	589		$	593		$	635			$	1,228			$	1,817			$	2,435
Written premium adjustment --       statutory only					35			(29)			(7)			10			33				43				36				7
Reported written premiums (statutory)*				$	693		$	589		$	582		$	603		$	668			$	1,271			$	1,853			$	2,442
Unearned premiums change					(89)			30			20			(4)			(86)				(90)				(69)				(40)
Earned premiums				$	604		$	619		$	602		$	599		$	582			$	1,181			$	1,784			$	2,402
Statutory combined ratio
Statutory combined ratio					86.5	%		92.4	%		94.1	%		89.6	%		87.5	%			88.6	%			90.3	%			90.8	%
Less catastrophe losses					1.8			1.9			2.3			5.6			5.1				5.3				4.3				3.7
Statutory combined ratio       excluding catastrophe losses					84.7	%		90.5	%		91.8	%		84.0	%		82.4	%			83.3	%			86.0	%			87.1	%
GAAP combined ratio
GAAP combined ratio					88.9	%		91.1	%		93.4	%		90.3	%		90.5	%			90.4	%			91.4	%			91.3	%
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal
the full year as each is computed independently.
*nm – Not meaningful
*Statutory data prepared in accordance with statutory accounting rules ad defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

2007 First-Quarter Supplement

 24

Cincinnati Insurance Group
Quarterly Property Casualty Data - Personal Lines
(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/07	9/30/07	6/30/07	3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07	6/30/06			9/30/07	9/30/06			12/31/07	12/31/06
Premiums
Adjusted written premiums (statutory)				$	153		$	167		$	198		$	211		$	161			$	372			$	570			$	737
Written premium adjustment --       statutory only					-			(1)			-			-			-				-				-				(1)
Reported written premiums (statutory)*				$	153		$	166		$	198		$	211		$	161			$	372			$	570			$	736
Unearned premiums change					28			17			(9)			(17)			35				18				9				26
Earned premiums				$	181		$	183		$	189		$	194		$	196			$	390			$	579			$	762
Statutory combined ratio
Statutory combined ratio					93.5	%		107.7	%		104.0	%		106.4	%		98.1	%			101.6	%			102.3	%			103.6	%
Less catastrophe losses					(4.1)			17.9			7.1			15.6			5.0				10.3				9.2				11.3
Statutory combined ratio       excluding catastrophe losses					97.6	%		89.8	%		96.9	%		90.8	%		93.1	%			91.3	%			93.1	%			92.3	%
GAAP combined ratio
GAAP combined ratio					92.0	%		106.0	%		104.4	%		107.6	%		96.4	%			102.0	%			102.8	%			103.6	%
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full
year as each is computed independently.
*nm – Not meaningful
*Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

2007 First-Quarter Supplement

 25

The Cincinnati Life Insurance Company
GAAP Statements of Income
	For the Three Months Ended March 31,
		2007		2006		Change	% Change
Revenues:
Premiums earned:
Property casualty	$	-	$	-	$	-	-
Life		38,946,474		34,874,544		4,071,930	11.68
Accident health		1,758,851		1,733,897		24,954	1.44
Premiums ceded		(10,286,342)		(10,320,610)		34,268	(0.33)
Total premiums earned		30,418,983		26,287,831		4,131,152	15.72
Investment income		28,312,584		26,275,186		2,037,398	7.75
Realized investment gains and losses		8,144,413		42,334,256		(34,189,843)	(80.76)
Other income		1,365,571		746,054		619,517	83.04
Total revenues	$	68,241,551	$	95,643,327	$	(27,401,776)	(28.65)
Benefits & expenses:
Losses & policy benefits	$	36,890,212	$	29,334,621	$	7,555,591	25.76
Reinsurance recoveries		(9,652,925)		864,998		(10,517,923)	(1,215.95)
Commissions		8,939,275		8,406,916		532,359	6.33
Other operating expenses		7,485,553		6,142,293		1,343,260	21.87
Interest expense		-		-		-	-
Taxes, licenses & fees		946,862		830,409		116,453	14.02
Incr deferred acq expense		(3,936,437)		(4,942,405)		1,005,968	(20.35)
Other expenses		64		64		-	0.00
Total expenses	$	40,672,604	$	40,636,896	$	35,708	0.09
Income before income taxes	$	27,568,947	$	55,006,431	$	(27,437,484)	(49.88)
Provision for income taxes:
Current	$	2,700,754	$	2,133,775	$	566,979	26.57
Current capital gains/losses		2,870,544		14,816,990		(11,946,446)	(80.63)
Deferred		4,059,429		2,992,000		1,067,429	35.68
Total income taxes	$	9,630,727	$	19,942,765	$	(10,312,038)	(51.71)
Net income	$	17,938,220	$	35,063,666	$	(17,125,446)	(48.84)

2007 First-Quarter Supplement

 26

The Cincinnati Life Insurance Company
Statutory Statements of Income
	For the Three Months Ended March 31,
		2007		2006	% Change
Net premiums written	$	40,441,018	$	38,308,469	5.57
Net investment income		28,317,576		26,275,186	7.77
Amortization of interest maintenance reserve		18,286		36,581	(50.01)
Commissions and expense allowances on reinsurance ceded		1,962,088		2,006,600	(2.22)
Income from fees associated with Separate Accounts		1,365,571		746,054	83.04
Total revenues	$	72,104,539	$	67,372,890	7.02
Death benefits and matured endowments		7,025,780		10,440,252	(32.70)
Annuity benefits		8,446,244		7,835,974	7.79
Disability benefits and benefits under accident and health contracts		392,588		124,030	216.53
Surrender benefits and group conversions		4,872,348		7,382,751	(34.00)
Interest and adjustments on deposit-type contract funds		2,701,644		2,851,152	(5.24)
Increase in aggregate reserves for life and accident and health contracts		27,127,730		21,550,983	25.88
Payments on supplementary contracts with life contingencies		90,522		75,477	19.93
Total benefit expenses	$	50,656,856	$	50,260,619	0.79
Commissions	$	8,834,275	$	8,307,166	6.35
General insurance expenses and taxes		9,826,285		8,395,309	17.04
Increase in loading on deferred and uncollected premiums		(1,378,574)		(1,353,692)	1.84
Net transfers to or (from) Separate Accounts		-		-	-
Other deductions		64		64	0.60
Total operating expenses	$	17,282,050	$	15,348,846	12.60
Federal and Foreign Income Taxes Incurred		2,611,204		1,889,192	38.22
Net gain from operations before realized capital gains or (losses)	$	1,554,429	$	(125,768)	(1,335.95)
Net realized gains or (losses) net of capital gains tax		5,811,552		27,697,576	(79.02)
Net Income (Statutory)	$	7,365,981	$	27,571,808	(73.28)
* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed
with the appropriate regulatory bodies.

2007 First-Quarter Supplement

 27

The Cincinnati Life Insurance Company
Expenses as a Percentage of Premium
(Dollars in millions)	Three months ended																								Six months ended				Nine months ended				Twelve months ended
	12/31/07			09/30/07			06/30/07			03/31/07			12/31/06			09/30/06			06/30/06			03/31/06			06/30/07	06/30/06			09/30/07	09/30/06			12/31/07	12/31/06
Gross Written Premiums										$	53		$	54		$	50		$	51		$	50			$	101			$	152			$	206
Bank Owned Life Insurance (BOLI)   Adjustment											-			-			-			-			-				-				-				-
Adjusted Gross Written Premiums										$	53		$	54		$	50		$	51		$	50			$	101			$	152			$	206
Insurance Expense										$	9		$	10		$	7		$	7		$	7			$	14			$	21			$	31
Expense Ratio											17.7	%		17.8	%		14.7	%		13.5	%		14.5	%			14.0	%			14.0	%			15.0	%
Expense Ratio based on Adjusted    Gross Written Premium											17.7	%		17.8	%		14.7	%		13.5	%		14.5	%			14.0	%			14.0	%			15.0	%
(Dollars in millions)	Years ended December 31,
	2006			2005			2004			2003			2002			2001			2000
Gross Written Premiums	$	206		$	249		$	230		$	173		$	244		$	122		$	157
Bank Owned Life Insurance (BOLI)    Adjustment		-			-			(10)			-			(34)			-			(20)
Adjusted Gross Written Premiums	$	206		$	249		$	220		$	173		$	210		$	122		$	137
Insurance Expense	$	31		$	29		$	25		$	25		$	27		$	25		$	20
Expense Ratio		15.0	%		11.7	%		11.1	%		14.8	%		10.9	%		20.6	%		12.9	%
Expense Ratio based on Adjusted    Gross Written Premium		15.0	%		11.7	%		11.6	%		14.8	%		12.6	%		20.6	%		14.8	%
*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.

2007 First-Quarter Supplement

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