8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report: July 30, 2009
(Date of earliest event reported)

CINCINNATI FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Ohio	0-4604	31-0746871
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

6200 S. Gilmore Road, Fairfield, Ohio	45014-5141
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (513) 870-2000

N/A
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))

Item 2.02 Results of Operations and Financial Condition.

On July 30, 2009, Cincinnati Financial Corporation issued the attached news release titled “Cincinnati Financial Reports Second-Quarter 2009 Results,” furnished as Exhibit 99.1 hereto and incorporated herein by reference. On July 30, 2009, the company also distributed the attached information titled “Supplemental Financial Data,” furnished as Exhibit 99.2 hereto and incorporated herein by reference. This report should not be deemed an admission as to the materiality of any information contained in the news release or supplemental financial data.

In accordance with general instruction B.2 of Form 8-K, the information furnished in this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

          Exhibit 99.1 – News release dated July 30, 2009, “Cincinnati Financial Reports Second-Quarter 2009 Results”

          Exhibit 99.2 – Supplemental Financial Data dated July 30, 2009

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CINCINNATI FINANCIAL CORPORATION
Date: July 30, 2009	/s/ Steven J. Johnston Steven J. Johnston, FCAS, MAAA, CFA
	Chief Financial Officer, Senior Vice President, Secretary and Treasurer

EX-99.1

Exhibit 99.1

CINCINNATI FINANCIAL CORPORATION

Investor Contact: Dennis E. McDaniel, 513-870-2768
CINF-IR@cinfin.com

Media Contact: Joan O. Shevchik, 513-603-5323
Media_Inquiries@cinfin.com

Cincinnati Financial Reports Second-Quarter 2009 Results

Cincinnati, July 30, 2009 — Cincinnati Financial Corporation (Nasdaq: CINF) today reported:

• Second-quarter 2009 net loss of $19 million compared with net income of $63 million in the second quarter of 2008.

• Book value per share of $25.49, an increase of 6.7 percent during the quarter.

• Operating loss* of $5 million, or 3 cents per share, compared with operating income of $69 million, or 42 cents per share.

• Net income and operating income declined 25 cents per share compared to second-quarter 2008 from the effects of higher catastrophe losses and a lesser amount of favorable development on loss and loss expense reserves for prior accident years. The contribution from investment income declined 9 cents per share.

• Value creation ratio of 8.4 percent for the second quarter and 2.0 percent for the first half of 2009 compared with negative 23.5 percent for the full year 2008.

Financial Highlights

	Three months ended June 30,									Six months ended June 30,
(Dollars in millions except share data)	2009			2008			change %			2009			2008			change %
Revenue Highlights
Earned premiums	$	770		$	794			(3.1	)	$	1,535		$	1,575			(2.5	)
Investment income		119			130			(8.4	)		243			282			(13.9	)
Total revenues		874			917			(4.7	)		1,764			1,621			8.8
Income Statement Data
Net income (loss)	$	(19	)	$	63			nm		$	17		$	21			(20.0	)
Net realized investment gains and losses		(14	)		(6	)		(119.0	)		(15	)		(157	)		90.0
Operating income (loss)*	$	(5	)	$	69			nm		$	32		$	178			(81.8	)
Per Share Data (diluted)
Net income (loss)	$	(0.12	)	$	0.38			nm		$	0.10		$	0.13			(23.1	)
Net realized investment gains and losses		(0.09	)		(0.04	)		(125.0	)		(0.10	)		(0.95	)		89.5
Operating income (loss)*	$	(0.03	)	$	0.42			nm		$	0.20		$	1.08			(81.5	)
Book value										$	25.49		$	28.99			(12.1	)
Cash dividend declared		0.39			0.39			0.0			0.78			0.78			0.0
Diluted weighted average shares outstanding		162,556,327			165,044,463			(1.5	)		162,738,081			164,601,462			(1.1	)

Insurance Operations Highlights

• 116.6 percent second-quarter 2009 property casualty combined ratio, a pre-tax underwriting loss of $122 million.

• Property casualty net written premiums decreased $67 million or 8.5 percent, driven by economic trends lowering insured exposures along with continued weak pricing in the insurance marketplace.

• $7 million increase in property casualty new business written by agencies in the second quarter of 2009, driven by $6 million from surplus lines operations that began in 2008.

• 7 cents per share contribution from life insurance operations to second-quarter operating income, up from 6 cents.

Balance Sheet and Investment Highlights

• $25.49 book value compared with $23.88 at March 31, 2009, and $25.75 at December 31, 2008, with the second-quarter improvement reflecting higher market-driven valuations in the investment portfolio.

• Excellent financial flexibility and growth capacity with property casualty statutory surplus of $3.241 billion at June 30, 2009, compared with $3.360 billion at December 31, 2008. Parent company cash and marketable securities of $1.046 billion provide shareholder dividend capacity.

• Investment income declined for the quarter and year-to-date periods, reflecting recent quarter portfolio changes from a capital preservation diversification strategy. Lower dividend income from equity securities was partially offset by higher interest income from bonds.

*	The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures on Page 10 defines and reconciles measures presented in this release that are not based on Generally Accepted Accounting Principles or Statutory Accounting Principles.
**	Forward-looking statements and related assumptions are subject to the risks outlined in the company’s safe harbor statement (see Page 8).

Cincinnati Financial Second-Quarter Earnings Release 1

Focus Continues on Long-Term Value Creation

Kenneth W. Stecher, president and chief executive officer, commented, “The 2009 second quarter brought an unwelcome repeat of recent trends for our property casualty insurance operations. Our underwriting loss primarily was driven by very high catastrophe losses, less favorable development on claims for prior accident years and a prolonged period of soft pricing and economic weakness that has reduced premium revenues for our company and our industry. Interest and dividend income from investments and steady profits from life insurance operations offset some of the property casualty underwriting loss.

“At June 30, 2009, unrealized gains in our stock and bond portfolio significantly exceeded the March 31 level. This increase offset the effects of the second-quarter underwriting loss on book value per share, which rose by $1.61 during the quarter. As a result, the value creation ratio we use to measure our success trended positively, reaching 8.4 percent for the second quarter and 2.0 percent for the six months. Looking past 2009 to the 2010-2014 period, we continue to target a five-year value creation ratio of 12 percent to 15 percent, comprised of the total of our rate of growth in book value per share plus the rate of dividend contribution per share.

“We continue to focus on actions to build our company’s long-term competitive advantages, financial strength and stability through all market cycles. Some of those actions, such as the diversification of our investment portfolio that has been achieved over the past year, set income back for the short term but improved our position going forward. We rebalanced our portfolio with a smaller equity component in order to preserve capital and increase stability. After adjusting prior periods to reflect current accounting standards for impaired securities, we expect to again see favorable trend comparisons for investment income by the end of this year’s second half. At that point, we anticipate interest from bonds will increase to a level that offsets lower dividends from our stock holdings.

“We believe that the quality of an insurer’s balance sheets hinges on its reserving practices,” Stecher noted. “Consistent reserving practices are essential during soft markets. As losses develop over the years after they occur, our reserves have proven more than adequate and allowed us to release favorable development from prior-year loss reserves into current earnings. In the current quarter and first half, the benefit from this savings was less than in the year-ago period because we slightly increased our inflation assumption for workers’ compensation reserves going back 20 or more years. Our reserves for open workers’ compensation claims total nearly $1 billion, so even small changes in inflation assumptions translate into significant quarterly income effects.

“The unique strength of our relationship with our agents remains a key competitive advantage, and we remain confident that it will lead to profitable growth as insurance markets improve. Our strong capital position provides plenty of capacity for that growth along with financial flexibility.”

Improving Profitability

Stecher said, “We expect to see improvement in our underperforming workers’ compensation and homeowner lines of business as we apply predictive modeling techniques to improve pricing accuracy. We are on target to begin using our workers’ compensation predictive modeling tool throughout our operating territory during the second half of 2009 to assist our underwriting staff with improved risk selection and pricing capabilities. We recently refined our homeowner predictive modeling and continue to improve pricing sophistication for individual risks. Rate increases are also being implemented for states representing approximately 80 percent of our personal lines business.

“Frequent catastrophe events continue to weigh on our results, particularly for the homeowner line. In addition to the three significant events during the second quarter for which we reported a preliminary catastrophe loss estimate on July 13, we identified smaller impacts from several events classified as catastrophes by Property Claims Services, an industry group that declares catastrophes when a single incident or a series of closely related incidents causes severe insured property losses totaling more than $25 million. Our second quarter 2009 total incurred losses from catastrophes were $118 million compared with $113 million for the same quarter in 2008.

“These amounts in both periods were well above our historical norm for catastrophe losses. We are addressing catastrophe risk through several initiatives, including ongoing efforts to control our hurricane exposure. Additionally, we have made progress with geographic diversification, expanding our personal lines operations over the past 18 months into seven states less prone to catastrophe events. Through the first six months of 2009, agencies in these states already have contributed more than $5 million of new business, approximately 15 percent of total new personal lines business. While it will take time to see meaningful earnings effects from geographic diversification, it is an important part of our enterprise risk management program.”

Cincinnati Financial Second-Quarter Earnings Release 2

Driving Growth

Stecher continued, “Although new property casualty business written for the second quarter of 2009 exceeded the 2008 level by 6.9 percent, due primarily to our surplus lines operation, total net written premiums declined 8.5 percent. These trends reflect pricing pressure as well as reduced premiums based on insured exposures that are highly sensitive to economic cycles, such as business sales or payrolls. Premiums on commercial accounts we choose to renew continue to reflect pricing declines at a low-single-digit rate, on average. We choose not to renew accounts that would require price decreases out of proportion to the quality of the individual risk.

“Rather than compete for business that appears to be underpriced, we are focusing on expanding our agency plant, geographical territory and lines of business. During the second quarter, we appointed our first Colorado agency, and we expect to announce our first agency relationship in Wyoming soon. We also recently added a third marketing territory in Texas, a state where we began actively marketing in 2008, and generated $3 million in direct written premiums for the first half of 2009. Typically, new agencies give us opportunities to underwrite accounts they formerly placed with another carrier, bringing us the advantage of risk characteristics and loss histories that are well-known to our agent.

“Agents also have responded enthusiastically to the surplus lines offerings of The Cincinnati Specialty Underwriters Insurance Company, now in its second year of operation. Of the $29 million increase in new, consolidated property casualty business written in the first six months, $12 million was surplus lines premium. Our ability to handle surplus lines risk through this company also increases our opportunities to write standard business for the same accounts through The Cincinnati Insurance Company.

“Our life insurance operation similarly provides opportunities to cross-sell life insurance products to clients of the independent agencies that sell Cincinnati’s property casualty insurance policies. We continue to enhance this portfolio of products and later this year plan to offer a new secondary guarantee universal life product, a new return of premium term life series and also a worksite return of premium 20-year term life product.

“We are on the verge of introducing our new commercial lines policy administration system, which we expect to drive future premium growth. A group of our associates are using it now to produce commercial package and commercial auto policies for Ohio and Indiana agencies they serve. In October, agents will receive the system and will gain direct bill capability. Further, our improved personal lines administration system is on track for early 2010 delivery to agents.

“In summary, our second quarter results were a disappointment but not a surprise, and we see few signs of a better environment for the remainder of 2009. Looking to the future, we strengthened our competitive and financial position during the second quarter by continuing to improve our portfolio and risk management, build our agency relationships, expand our independent agency force and advance our technology.”

Stecher concluded, “Our property casualty insurance group was named in July to the Ward’s 50 list of insurers that excel at balancing financial strength with superior performance over a five-year period. Our group is one of only five insurers named to the Ward’s 50 every year since inception of the list 19 years ago. With support from our loyal shareholders, agents, policyholders and associates, we will continue making progress and building value that endures over time.”

Cincinnati Financial Second-Quarter Earnings Release 3

Consolidated Property Casualty Insurance Operations

(Dollars in millions; percent change given for dollar amounts	Three months ended June 30,									Six months ended June 30,
and point change given for ratios)	2009			2008			change %			2009			2008			change %
Earned premiums	$	733		$	761			(3.7	)	$	1,465		$	1,512			(3.1	)
Loss and loss expenses before catastrophe losses		502			445			12.8			992			903			9.9
Loss and loss expenses from catastrophe losses		118			113			4.1			171			156			9.3
Total loss and loss expenses		620			558			11.2			1,163			1,059			9.9
Underwriting expenses		235			230			2.6			479			469			2.0
Underwriting loss	$	(122	)	$	(27	)		(356.3	)	$	(177	)	$	(16	)		nm
Other premium metrics:
Agency renewal written premiums	$	666		$	738			(9.8	)	$	1,361		$	1,472			(7.5	)
Agency new business written premiums		107			100			6.9			204			175			16.4
Net written premiums		723			790			(8.5	)		1,501			1,566			(4.2	)
Ratios as a percent of earned premiums:							Points									Points
Loss and loss expenses		84.5	%		73.3	%		11.2			79.4	%		70.0	%		9.4
Underwriting expenses		32.1			30.2			1.9			32.7			31.1			1.6
Combined ratio		116.6	%		103.5	%		13.1			112.1	%		101.1	%		11.0
Other metrics within combined ratio:
Contribution from catastrophe losses		16.1			14.9			1.2			11.6			10.3			1.3
Contribution from prior period reserve development		(3.9	)		(11.4	)		7.5			(1.5	)		(6.5	)		5.0

• $67 million or 8.5 percent decrease in second-quarter property casualty net written premiums as the effects of exposure decreases, soft pricing and disciplined renewal underwriting more than offset growth in new business.

• $7 million increase in 2009 new business written by agencies reflected the contribution from growth initiatives, including a $6 million increase from surplus lines.

• 1,168 agency relationships with 1,444 reporting locations marketing standard market property casualty insurance products at June 30, 2009, up from 1,133 agency relationships with 1,387 reporting locations at year-end 2008.

• Second-quarter 2009 GAAP combined ratio increased primarily due to less favorable development on prior accident year loss and loss expense reserves. The underwriting profit impacts of this prior accident year reserve development for the second quarter of 2009 and 2008, respectively, were $29 million unfavorable and $9 million favorable for the workers’ compensation line of business and $58 million favorable and $77 million favorable for all other lines of business.

			Three months ended June 30,									Six months ended June 30,
(In millions, net of reinsurance)			Commercial			Personal						Commercial			Personal
Dates	Cause of loss	Region	lines			lines			Total			lines			lines			Total
2009
Jan. 26-28	Flood, freezing, ice, snow	South, Midwest	$	(1	)	$	—		$	(1	)	$	5		$	15		$	20
Feb. 10-13	Flood, hail, wind	South, Midwest, East		4			5			9			15			23			38
Feb. 18-19	Wind, hail	South		1			3			4			1			8			9
Apr. 9-11	Flood, hail, wind	South, Midwest		13			15			28			13			15			28
May 7-9	Flood, hail, wind	South, Midwest		12			17			29			12			17			29
Jun. 2-6	Flood, hail, wind	South, Midwest		6			4			10			6			4			10
Jun. 10-18	Flood, hail, wind	South, Midwest		21			9			30			21			9			30
All other 2009 catastrophes				5			6			11			5			6			11
Development on 2008 and prior catastrophes				(4	)		2			(2	)		(7	)		3			(4	)
Calendar year incurred total			$	57		$	61		$	118		$	71		$	100		$	171
2008
Jan. 4-9	Wind, hail, flood, freezing	South, Midwest	$	—		$	—		$	—		$	3		$	3		$	6
Jan. 29-30	Wind, hail	Midwest		—			—			—			6			4			10
Feb. 5-6	Wind, hail, flood	Midwest		(2	)		(1	)		(3	)		6			8			14
Mar. 14	Tornadoes, wind, hail, flood	South		—			—			—			5			1			6
Mar. 15-16	Wind, hail	South		(2	)		1			(1	)		2			5			7
Apr. 9-11	Wind, hail, flood	South		19			2			21			19			2			21
May 10-12	Wind, hail, flood	South, Mid-Atlantic		4			3			7			4			3			7
May 22-26	Wind, hail	Midwest		7			2			9			7			2			9
May 29- Jun 1	Wind, hail, flood	Midwest		6			6			12			6			6			12
Jun. 2-4	Wind, hail, flood	Midwest		6			7			13			6			7			13
Jun. 5-8	Wind, hail, flood	Midwest		13			11			24			13			11			24
Jun. 11-12	Wind, hail, flood	Midwest		11			12			23			11			12			23
All other 2008 catastrophes				4			4			8			4			4			8
Development on 2007 and prior catastrophes				—			—			—			(3	)		(1	)		(4	)
Calendar year incurred total			$	66		$	47		$	113		$	89		$	67		$	156

Cincinnati Financial Second-Quarter Earnings Release 4

Insurance Segments Highlights

Commercial Lines Insurance Operations

(Dollars in millions; percent change given for dollar amounts	Three months ended June 30,									Six months ended June 30,
and point change given for ratios)	2009			2008			change %			2009			2008			change %
Earned premiums	$	556		$	586			(5.2	)	$	1,112		$	1,161			(4.2	)
Loss and loss expenses before catastrophe losses		385			342			12.3			759			685			10.8
Loss and loss expenses from catastrophe losses		57			66			(14.0	)		71			89			(19.9	)
Total loss and loss expenses		442			408			8.1			830			774			7.3
Underwriting expenses		175			177			(1.1	)		355			357			(0.6	)
Underwriting (loss) profit	$	(61	)	$	1		nm			$	(73	)	$	30			nm
Other premium metrics:
Agency renewal written premiums	$	488		$	552			(11.7	)	$	1,045		$	1,140			(8.3	)
Agency new business written premiums		79			87			(8.7	)		155			153			1.5
Net written premiums		524			597			(12.2	)		1,149			1,222			(5.9	)
Ratios as a percent of earned premiums:							Points									Points
Loss and loss expenses		79.5	%		69.7	%		9.8			74.6	%		66.7	%		7.9
Underwriting expenses		31.4			30.2			1.2			32.0			30.7			1.3
Combined ratio		110.9	%		99.9	%		11.0			106.6	%		97.4	%		9.2
Other metrics within combined ratio:
Contribution from catastrophe losses		10.2			11.3			(1.1	)		6.4			7.6			(1.2	)
Contribution from prior period reserve development		(3.9	)		(12.5	)		8.6			(1.2	)		(7.6	)		6.4

• $73 million or 12.2 percent decrease in second-quarter commercial lines net written premiums. Lower renewal premiums reflected pricing declines and lower insured exposure levels such as business sales or payroll volume, reflecting the weak economy. Lower new business premiums reflected decisions to decline business considered underpriced.

• $13 million of commercial lines new business written was from agencies appointed since January 2008.

• 11.0 percentage-point increase in second-quarter 2009 combined ratio included 6.8 percentage points from development of workers’ compensation loss and loss expense reserves for prior accident years. It unfavorably affected by 5.3 percentage points the second-quarter ratio of 2009 and favorably impacted by 1.5 percentage points the second quarter of 2008.

Personal Lines Insurance Operations

(Dollars in millions; percent change given for dollar amounts	Three months ended June 30,									Six months ended June 30,
and point change given for ratios)	2009			2008			change %			2009			2008			change %
Earned premiums	$	172		$	174			(1.5	)	$	343		$	351			(2.2	)
Loss and loss expenses before catastrophe losses		112			102			10.2			225			217			3.9
Loss and loss expenses from catastrophe losses		61			47			29.3			100			67			47.3
Total loss and loss expenses		173			149			16.2			325			284			14.2
Underwriting expenses		56			52			6.6			110			112			(0.5	)
Underwriting loss	$	(57	)	$	(27	)		(113.0	)	$	(92	)	$	(45	)		(107.3	)
Other premium metrics:
Agency renewal direct written premiums	$	176		$	186			(5.3	)	$	313		$	332			(5.6	)
Agency new business direct written premiums		19			10			84.7			34			19			76.8
Net written premiums		190			191			(0.6	)		334			341			(1.9	)
Ratios as a percent of earned premiums:							Points									Points
Loss and loss expenses		100.9	%		85.4	%		15.5			94.6	%		81.0	%		13.6
Underwriting expenses		32.3			29.9			2.4			32.3			31.7			0.6
Combined ratio		133.2	%		115.3	%		17.9			126.9	%		112.7	%		14.2
Other metrics within combined ratio:
Contribution from catastrophe losses		35.4			27.0			8.4			29.0			19.3			9.7
Contribution from prior period reserve development		(4.3	)		(7.2	)		2.9			(2.5	)		(3.2	)		0.7

• $1 million or 0.6 percent decline in second-quarter personal lines net written premiums. Higher new personal lines business was offset by the effects of changes in pricing on renewal business volume.

• $9 million increase in second-quarter 2009 personal lines new business written including $3 million from seven states where we began in 2008 to market personal lines or significantly expanded our personal lines product offerings and automation capabilities.

• 17.9 percentage-point increase in the combined ratio due largely to an 8.4 percentage-point increase in catastrophe losses and a 3.1 percentage-point increase in personal lines large losses above $250,000 per loss.

Cincinnati Financial Second-Quarter Earnings Release 5

Life Insurance Operations

	Three months ended June 30,							Six months ended June 30,
(In millions)	2009		2008		change %			2009		2008		change %
Written premiums	$	73	$	47		56.1		$	123	$	90		35.8
Earned premiums	$	37	$	33		9.9		$	70	$	63		11.1
Investment income, net of expenses		29		29		(0.1	)		59		58		1.3
Other income		—		1		(131.0	)		—		1		(83.5	)
Total revenues, excluding realized investment gains and losses		66		63		3.9			129		122		5.4
Contract holders benefits		39		38		1.8			78		74		5.3
Underwriting expenses		13		10		29.8			24		21		16.0
Total benefits and expenses		52		48		7.5			102		95		7.7
Net income before income tax and realized investment gains and losses		14		15		(7.3	)		27		27		(2.6	)
Income tax		3		5		(41.2	)		8		9		(20.8	)
Net income before realized investment gains and losses	$	11	$	10		10.3		$	19	$	18		6.7

• $33 million increase in total six-month 2009 life insurance segment net written premiums primarily due to increased fixed annuity sales. Written premiums include life insurance, annuity and accident and health premiums.

• 7.6 percent increase to $78 million in six-month 2009 written premiums for life insurance products in total.

• 12.0 percent rise to $43 million in six-month term life insurance written premiums, reflecting marketing advantages of competitive, up-to-date products, providing close personal attention and offering policies backed by financial strength and stability.

• Growth in earned premiums more than offset less favorable mortality experience as life insurance operations continue to provide a steady contribution to overall earnings.

• 2.9 percent rise in face amount of life policies in force to $67.812 billion at June 30, 2009, from $65.888 billion at year-end 2008.

Cincinnati Financial Second-Quarter Earnings Release 6

Investment and Balance Sheet Highlights

Investment Operations

	Three months ended June 30,									Six months ended June 30,
(In millions)	2009			2008			change %			2009			2008			change %
Investment income:
Interest	$	96		$	79			21.0		$	192		$	155			23.7
Dividends		24			50			(52.4	)		50			123			(59.2	)
Other		1			3			(47.8	)		5			7			(36.6	)
Investment expenses		(2	)		(2	)		(4.3	)		(4	)		(3	)		(7.8	)
Total investment income, net of expenses		119			130			(8.4	)		243			282			(13.9	)
Investment interest credited to contract holders		(17	)		(16	)		6.8			(33	)		(31	)		6.3
Realized investment gains and losses summary:
Realized investment gains and losses		23			57			(59.3	)		75			40			85.1
Change in fair value of securities with embedded derivatives		11			(3	)		nm			7			(6	)		nm
Other-than-temporary impairment charges		(52	)		(65	)		18.9			(102	)		(278	)		63.4
Total realized investment gains and losses		(18	)		(11	)		(62.0	)		(20	)		(244	)		91.9
Investment operations income	$	84		$	103			(18.3	)	$	190		$	7		nm

• 8.4 percent decline in second-quarter 2009 net investment income, primarily due to dividend reductions by equity security holdings.

• $18 million realized investment loss in second-quarter 2009 compared with an $11 million loss in second-quarter 2008.

• Second-quarter 2009 pretax realized investment loss included $52 million non-cash charge for other-than-temporary impairments that recognize significant market value declines, primarily for the equity portfolio.

	At June 30,			At December 31,
(Dollars in millions except share data)	2009			2008
Balance sheet data
Invested assets	$	9,708		$	8,890
Total assets		13,522			13,369
Short-term debt		49			49
Long-term debt		790			791
Shareholders’ equity		4,144			4,182
Book value per share		25.49			25.75
Debt-to-capital ratio		16.8	%		16.7	%

	Six months ended June 30,
	2009			2008
Performance measures
Value creation ratio		2.0	%		(16.6)	%

• $9.962 billion in cash and invested assets at June 30, 2009, compared with $9.899 billion at December 31, 2008. Cash and equivalents of $254 million at June 30, 2009, compared with $1.009 billion at December 31, 2008.

• $7.127 billion bond portfolio at June 30, 2009, with an average rating of A2/A, reflecting a diverse mix of taxable and tax-exempt securities.

• $2.492 billion equity portfolio was 25.7 percent of invested assets and included $533 million in pretax unrealized gains at June 30, 2009.

• $3.241 billion of statutory surplus for the property casualty insurance group at June 30, 2009, compared with $3.360 billion at December 31, 2008. Ratio of net written premiums to property casualty statutory surplus for the 12 months ended June 30, 2009, of 0.93-to-1, up from 0.89-to-1 for the 12 months ended December 31, 2008.

• Value creation ratio for the first half of 2009 includes 3.0 percent from shareholder dividends and negative 1.0 percent growth in book value per share.

For additional information or to register for this morning’s conference call webcast, please visit www.cinfin.com/investors.

Cincinnati Financial Corporation offers business, home and auto insurance, our main business, through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life and disability income insurance, annuities and surplus lines property and casualty insurance. For additional information about the company, please visit www.cinfin.com.

Mailing Address:	Street Address:
P.O. Box 145496	6200 South Gilmore Road
Cincinnati, Ohio 45250-5496	Fairfield, Ohio 45014-5141

Cincinnati Financial Second-Quarter Earnings Release 7

Safe Harbor Statement

This is our “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995. Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by the forward-looking statements in this report. Some of those risks and uncertainties are discussed in our 2008 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 25. Although we often review or update our forward-looking statements when events warrant, we caution our readers that we undertake no obligation to do so.

Factors that could cause or contribute to such differences include, but are not limited to:

• Unusually high levels of catastrophe losses due to risk concentrations, changes in weather patterns, environmental events, terrorism incidents or other causes

• Increased frequency and/or severity of claims

• Inadequate estimates or assumptions used for critical accounting estimates

• Recession or other economic conditions resulting in lower demand for insurance products or increased payment delinquencies

• Delays in adoption and implementation of underwriting and pricing methods that could increase our pricing accuracy, underwriting profit and competitiveness

• Inability to defer policy acquisition costs for our personal lines segment if pricing and loss trends would lead management to conclude this segment could not achieve sustainable profitability

• Declines in overall stock market values negatively affecting the company’s equity portfolio and book value

• Events, such as the credit crisis, followed by prolonged periods of economic instability, that lead to:

°	Significant or prolonged decline in the value of a particular security or group of securities and impairment of the asset(s)
°	Significant decline in investment income due to reduced or eliminated dividend payouts from a particular security or group of securities
°	Significant rise in losses from surety and director and officer policies written for financial institutions

• Prolonged low interest rate environment or other factors that limit the company’s ability to generate growth in investment income or interest rate fluctuations that result in declining values of fixed-maturity investments, including declines in accounts in which we hold bank-owned life insurance contract assets

• Increased competition that could result in a significant reduction in the company’s premium volume

• Changing consumer insurance-buying habits and consolidation of independent insurance agencies that could alter our competitive advantages

• Ability to obtain adequate reinsurance on acceptable terms, amount of reinsurance purchased, financial strength of reinsurers and the potential for non-payment or delay in payment by reinsurers

• Events or conditions that could weaken or harm the company’s relationships with its independent agencies and hamper opportunities to add new agencies, resulting in limitations on the company’s opportunities for growth, such as:

°	Multi-notch downgrades of the company’s financial strength ratings
°	Concerns that doing business with the company is too difficult
°	Perceptions that the company’s level of service, particularly claims service, is no longer a distinguishing characteristic in the marketplace
°	Delays or inadequacies in the development, implementation, performance and benefits of technology projects and enhancements

• Actions of insurance departments, state attorneys general or other regulatory agencies, including a change to a federal system of regulation from a state-based system, that:

°	Restrict our ability to exit or reduce writings of unprofitable coverages or lines of business
°	Place the insurance industry under greater regulatory scrutiny or result in new statutes, rules and regulations
°	Increase our expenses
°	Add assessments for guaranty funds, other insurance related assessments or mandatory reinsurance arrangements; or that impair our ability to recover such assessments through future surcharges or other rate changes
°	Limit our ability to set fair, adequate and reasonable rates
°	Place us at a disadvantage in the marketplace
°	Restrict our ability to execute our business model, including the way we compensate agents

• Adverse outcomes from litigation or administrative proceedings

• Events or actions, including unauthorized intentional circumvention of controls, that reduce the company’s future ability to maintain effective internal control over financial reporting under the Sarbanes-Oxley Act of 2002

• Unforeseen departure of certain executive officers or other key employees due to retirement, health or other causes that could interrupt progress toward important strategic goals or diminish the effectiveness of certain longstanding relationships with insurance agents and others

• Events, such as an epidemic, natural catastrophe or terrorism, that could hamper our ability to assemble our workforce at our headquarters location

Further, the company’s insurance businesses are subject to the effects of changing social, economic and regulatory environments. Public and regulatory initiatives have included efforts to adversely influence and restrict premium rates, restrict the ability to cancel policies, impose underwriting standards and expand overall regulation. The company also is subject to public and regulatory initiatives that can affect the market value for its common stock, such as recent measures affecting corporate financial reporting and governance. The ultimate changes and eventual effects, if any, of these initiatives are uncertain.

* * *

Cincinnati Financial Second-Quarter Earnings Release 8

Cincinnati Financial Corporation
Condensed Balance Sheets and Statements of Income (unaudited)

	June 30,			December 31,
(Dollars in millions)	2009			2008
Assets
Investments	$	9,708		$	8,890
Cash and cash equivalents		254			1,009
Premiums receivable		1,075			1,059
Reinsurance receivable		730			759
Deferred income tax		73			126
Other assets		1,682			1,526
Total assets	$	13,522		$	13,369
Liabilities
Insurance reserves	$	5,847		$	5,637
Unearned premiums		1,565			1,544
6.125% senior notes due 2034		371			371
6.9% senior debentures due 2028		28			28
6.92% senior debentures due 2028		391			392
Other liabilities		1,176			1,215
Total liabilities		9,378			9,187
Shareholders’ Equity
Common stock and paid-in capital		1,468			1,462
Retained earnings		3,575			3,579
Accumulated other comprehensive income		304			347
Treasury stock		(1,203	)		(1,206	)
Total shareholders’ equity		4,144			4,182
Total liabilities and shareholders’ equity	$	13,522		$	13,369

	Three months ended June 30,						Six months ended June 30,
(Dollars in millions except per share data)	2009			2008			2009			2008
Revenues
Earned premiums	$	770		$	794		$	1,535		$	1,575
Investment income, net of expenses		119			130			243			282
Realized investment gains and losses		(18	)		(11	)		(20	)		(244	)
Other income		3			4			6			8
Total revenues		874			917			1,764			1,621
Benefits and Expenses
Insurance losses and policyholder benefits		658			595			1,239			1,131
Underwriting, acquisition and insurance expenses		248			239			503			491
Other operating expenses		4			6			10			10
Interest expense		14			13			28			25
Total benefits and expenses		924			853			1,780			1,657
Income (Loss) before Income Taxes		(50	)		64			(16	)		(36	)
Provision (Benefit) for Income Taxes		(31	)		1			(33	)		(57	)
Net Income (Loss)	$	(19	)	$	63		$	17		$	21
Per Common Share:
Net income (loss)—basic	$	(0.12	)	$	0.38		$	0.10		$	0.13
Net income (loss)—diluted	$	(0.12	)	$	0.38		$	0.10		$	0.13

Cincinnati Financial Second-Quarter Earnings Release 9

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

(See attached tables for 2009 reconciliations; prior-period reconciliations available at www.cinfin.com/investors.)

Cincinnati Financial Corporation prepares its public 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. Management uses these measures when analyzing both GAAP and non-GAAP measures may improve its understanding of trends in the underlying business and help 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 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 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.

Cincinnati Financial Second-Quarter Earnings Release 10

Cincinnati Financial Corporation
Net Income Reconciliation

	Three months ended			Six months ended
(In millions except per share data)	June 30, 2009			June 30, 2009
Net income (loss)	$	(19	)	$	17
Net realized investment gains and losses		(14	)		(15	)
Operating income (loss)		(5	)		32
Less catastrophe losses		(77	)		(111	)
Operating income before catastrophe losses	$	72		$	143
Diluted per share data:
Net income (loss)	$	(0.12	)	$	0.10
Net realized investment gains and losses		(0.09	)		(0.10	)
Operating income (loss)		(0.03	)		0.20
Less catastrophe losses		(0.47	)		(0.68	)
Operating income before catastrophe losses	$	0.44		$	0.88

Property Casualty Reconciliation

	Three months ended June 30, 2009
(Dollars in millions)	Consolidated*			Commercial			Personal
Premiums:
Adjusted written premiums — statutory	$	735		$	536		$	190
Written premium adjustment		(12	)		(12	)		0
Reported written premiums — statutory		723			524			190
Unearned premiums change		10			32			(18	)
Earned premiums	$	733		$	556		$	172
Statutory combined ratio:
Statutory combined ratio		116.6	%		112.0	%		130.5	%
Contribution from catastrophe losses		16.1			10.2			35.4
Statutory combined ratio excluding catastrophe losses		100.5	%		101.8	%		95.1	%
Commission expense ratio		18.2	%		18.1	%		18.0	%
Other expense ratio		13.8			14.4			11.7
Statutory expense ratio		32.0	%		32.5	%		29.7	%
GAAP combined ratio:
GAAP combined ratio		116.6	%		110.9	%		133.2	%
Contribution from catastrophe losses		16.1			10.2			35.4
Prior accident years before catastrophe losses		(3.7	)		(3.2	)		(5.4	)
GAAP combined ratio excluding catastrophe losses and prior years reserve development		104.2	%		103.9	%		103.2	%

	Six months ended June 30, 2009
(Dollars in millions)	Consolidated*			Commercial			Personal
Premiums:
Adjusted written premiums — statutory	$	1,490		$	1,138		$	334
Written premium adjustment		11			11			0
Reported written premiums — statutory		1,501			1,149			334
Unearned premiums change		(36	)		(37	)		9
Earned premiums	$	1,465		$	1,112		$	343
Statutory combined ratio:
Statutory combined ratio		110.8	%		105.4	%		126.8	%
Contribution from catastrophe losses		11.6			6.4			29.0
Statutory combined ratio excluding catastrophe losses		99.2	%		99.0	%		97.8	%
Commission expense ratio		17.9	%		17.2	%		20.0	%
Other expense ratio		13.5			13.5			12.2
Statutory expense ratio		31.4	%		30.7	%		32.2	%
GAAP combined ratio:
GAAP combined ratio		112.1	%		106.6	%		126.9	%
Contribution from catastrophe losses		11.6			6.4			29.0
Prior accident years before catastrophe losses		(1.2	)		(0.6	)		(3.4	)
GAAP combined ratio excluding catastrophe losses and prior years reserve development		101.7	%		100.8	%		101.3	%

Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.

* Consolidated property casualty data includes results from our surplus line of business.

Cincinnati Financial Second-Quarter Earnings Release 11

EX-99.2

Exhibit 99.2

Cincinnati Financial Corporation
Supplemental Financial Data
June 30, 2009
Second Quarter

6200 South Gilmore Road
Fairfield, Ohio 45014-5141
www.cinfin.com

Investor Contact:	Media Contact:	Shareholder Contact:
Dennis E. McDaniel	Joan O. Shevchik	Jerry L. Litton
(513) 870-2768	(513) 603-5323	(513) 870-2639

							Standard &
	A.M. Best		Fitch		Moody’s		Poor’s
Cincinnati Financial Corporation
Corporate Debt		a		A		A3	BBB+
The Cincinnati Insurance Companies
Insurer Financial Strength
Property Casualty Group
Standard Market Subsidiaries:		A+		—		A1		A+
The Cincinnati Insurance Company		A+	AA-			A1		A+
The Cincinnati Indemnity Company		A+	AA-			A1		A+
The Cincinnati Casualty Company		A+	AA-			A1		A+
Surplus Lines Subsidiary:
The Cincinnati Specialty Underwriters Insurance Company		A		—		—		—
The Cincinnati Life Insurance Company		A	AA-			—		A+

Ratings are as of July 24, 2009, under continuous review and subject to change and/or affirmation. For the current ratings, select Financial Strength Ratings on www.cinfin.com.

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 our periodic filings with the U.S. Securities and Exchange Commission. The results of operations for interim periods may not be indicative of results to be expected for the full year.

Cincinnati Financial Corporation
Supplemental Financial Data
Second Quarter 2009

	Page
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures		3
Consolidated
Quick Reference		4
CFC and Subsidiaries Consolidation — Six Months Ended June 30, 2009		5
CFC and Subsidiaries Consolidation — Three Months Ended June 30, 2009		6
Quarterly Net Income Reconciliation		7
CFC Insurance Subsidiaries — Selected Balance Sheet Data		8
Consolidated Property Casualty Insurance Operations
(Includes Cincinnati Specialty Underwriters Insurance Company (CSU))
Statutory Statements of Income		9
Statutory Quarterly Analysis — Consolidated		10
Statutory Quarterly Analysis — Commercial Lines		11
Statutory Quarterly Analysis — Personal Lines		12
Direct Written Premiums by Line of Business and State		13
Quarterly Property Casualty Data — Commercial Lines of Business		14
Quarterly Property Casualty Data — Personal Lines of Business		15
Quarterly Detailed Loss Analysis		16
Loss and Loss Expense Analysis		17
Reconciliation Data
Quarterly Property Casualty Data — Consolidated		18
Quarterly Property Casualty Data — Commercial Lines		19
Quarterly Property Casualty Data — Personal Lines		20
Life Insurance Operations
Statutory Statements of Income		21

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

Cincinnati Financial Corporation prepares its public 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. Management uses these measures when analyzing both GAAP and non-GAAP measures may improve its understanding of trends in the underlying business and help 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 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 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.

2009 Second-Quarter Supplement

3

Cincinnati Financial Corporation
Quick Reference - Second Quarter 2009
(all data shown is for the three months ended or as of June 30, 2009)

(Based on reported data — see Pages 18-20 for adjusted data)

				Year over year
	6/30/2009			change %
Revenues:
Commercial lines net written premiums	$	524			(12.2	)
Personal lines net written premiums		190			(0.6	)
Surplus lines net written premiums		9			277.3
Property casualty net written premiums		723			(8.5	)
Commercial lines net earned premiums		556			(5.2	)
Personal lines net earned premiums		172			(1.5	)
Surplus lines net earned premiums		5			nm
Property casualty net earned premiums		733			(3.7	)
Life and accident and health net earned premiums		37			9.9
Investment income		119			(8.4	)
Realized gains on investments		(18	)	nm
Other income		3			(0.3	)
Total revenues		874			(4.7	)
Income:
Operating income	$	(5	)		(107.2	)
Net realized investment gains and losses		(14	)		(117.7	)
Net income		(19	)	nm
Per share (diluted):
Operating income (loss)	$	(0.03	)		(107.1	)
Net realized investment gains and losses		(0.09	)		120.3
Net income		(0.12	)		(131.6	)
Book value		25.49			(12.1	)
Weighted average shares — diluted		162,556,327		nm
Benefits and expenses:
Commercial lines loss and loss expenses	$	442			8.1
Personal lines loss and loss expenses		173			16.2
Surplus lines loss and loss expenses		4			nm
Life and accident and health losses and policy benefits		39			1.8
Underwriting, acquisition and insurance expenses		248			(3.6	)
Operating expenses		4			(19.8	)
Interest expenses		14			10.9
Total expenses		924			8.4
Net income before income taxes		(50	)	nm
Total income tax benefit		(31	)	nm
Ratios:
Commercial lines GAAP combined ratio		110.9	%
Personal lines GAAP combined ratio		133.2
Property casualty GAAP combined ratio		116.6
Commercial lines STAT combined ratio		112.0	%
Personal lines STAT combined ratio		130.5
Property casualty STAT combined ratio		116.6
Balance Sheet:
Fixed maturity investments	$	7,127
Equity securities		2,492
Short-term investments		12
Other invested assets		77
Total invested assets	$	9,708
Loss and loss expense reserves	$	4,233
Total debt		839
Shareholders’ equity		4,144

2009 Second-Quarter Supplement

4

Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Six Months Ended June 30, 2009

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I		CINFIN			C-SUPR		ELIM			Total
Revenues:
Premiums earned:
Property Casualty	$	—		$	1,550		$	—		$	—	$	—		$	—	$	—		$	1,550
Life		—			—			91			—		—			—		—			91
Accident health		—			—			3			—		—			—		—			3
Premiums ceded		—			(85	)		(24	)		—		—			—		—			(109	)
Total earned premium		—			1,465			70			—		—			—		—			1,535
Investment income		20			164			59			—		—			—		—			243
Realized gain on investments		67			(54	)		(32	)		—		(1	)		—		—			(20	)
Other income		7			2			—			4		—			2		(9	)		6
Total revenues	$	94		$	1,577		$	97		$	4	$	(1	)	$	2	$	(9	)	$	1,764
Benefits & expenses:
Losses & policy benefits	$	—		$	1,194		$	100		$	—	$	—		$	—	$	(2	)	$	1,292
Reinsurance recoveries		—			(31	)		(22	)		—		—			—		—			(53	)
Underwriting, acquisition and insurance expenses		—			479			24			—		—			—		(1	)		503
Other operating expenses		13			—			—			2		—			2		(6	)		10
Interest expense		26			—			—			2		—			—		—			28
Total expenses	$	39		$	1,642		$	102		$	4	$	0		$	2	$	(9	)	$	1,780
Income (loss) before income taxes	$	55		$	(65	)	$	(5	)	$	0	$	(1	)	$	0	$	0		$	13
Provision (benefit) for income taxes:
Current operating income	$	(11	)	$	(33	)	$	(4	)	$	—	$	—		$	—	$	—		$	(40	)
Capital gains/losses		23			(18	)		(9	)		—		—			—		—			(4	)
Deferred		3			4			12			—		—			—		—			21
Total provision (benefit) for income taxes	$	15		$	(47	)	$	(1	)	$	0	$	0		$	0	$	0		$	(23	)
Operating income (loss)	$	(5	)	$	18		$	19		$	0	$	0		$	0	$	0		$	32
Net income (loss) — current year	$	40		$	(18	)	$	(4	)	$	0	$	(1	)	$	0	$	0		$	17
Net income (loss) — prior year	$	(27	)	$	43		$	4		$	1	$	0		$	0	$	0		$	21

* Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.

2009 Second-Quarter Supplement

5

Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Three Months Ended June 30, 2009

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I		CINFIN		C-SUPR		ELIM			Total
Revenues:
Premiums earned:
Property Casualty	$	—		$	776		$	—		$	—	$	—	$	—	$	—		$	776
Life		—			—			47			—		—		—		—			47
Accident health		—			—			2			—		—		—		—			2
Premiums ceded		—			(43	)		(12	)		—		—		—		—			(55	)
Total earned premium		—			733			37			—		—		—		—			770
Investment income		11			79			29			—		—		—		—			119
Realized gain on investments		(14	)		1			(5	)		—		—		—		—			(18	)
Other income		4			1			—			2		—		1		(5	)		3
Total revenues	$	1		$	814		$	61		$	2	$	0	$	1	$	(5	)	$	874
Benefits & expenses:
Losses & policy benefits	$	—		$	663		$	49		$	—	$	—	$	—	$	(1	)	$	711
Reinsurance recoveries		—			(43	)		(10	)		—		—		—		—			(53	)
Underwriting, acquisition and insurance expenses		—			235			13			—		—		—		—			248
Other operating expenses		6			—			—			1		—		1		(4	)		4
Interest expense		13			—			—			1		—		—		—			14
Total expenses	$	19		$	855		$	52		$	2	$	0	$	1	$	(5	)	$	924
Income (loss) before income taxes	$	(18	)	$	(41	)	$	9		$	0	$	0	$	0	$	0		$	(50	)
Provision (benefit) for income taxes:
Current operating income	$	(10	)	$	(33	)	$	(1	)	$	—	$	—	$	—	$	—		$	(44	)
Capital gains/losses		(5	)		—			—			—		—		—		—			(5	)
Deferred		7			6			5			—		—		—		—			18
Total provision (benefit) for income taxes	$	(8	)	$	(27	)	$	4		$	0		0	$	0	$	0		$	(31	)
Operating income (loss)	$	0		$	(15	)	$	10		$	0	$	0	$	0	$	0		$	(5	)
Net income (loss) — current year	$	(10	)	$	(14	)	$	5		$	0	$	0	$	0	$	0		$	(19	)
Net income — prior year	$	13		$	48		$	2		$	0	$	0	$	0	$	0		$	63

* Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.

2009 Second-Quarter Supplement

6

Cincinnati Financial Corporation
Quarterly Net Income Reconciliation

						Three months ended														Six months ended						Nine months ended				Twelve months ended
(Dollars in millions except per share data)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08		9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Net income (loss)			$	(19	)	$	35		$	161	$	247		$	63		$	(42	)	$	17		$	21			$	268			$	429
Net realized investment gains and losses				(14	)		(2	)		69		173			(6	)		(151	)		(15	)		(157	)			16				85
Operating income (loss)				(5	)		37			92		74			69			109			32			178				252				344
Less catastrophe losses				(77	)		(34	)		10		(41	)		(74	)		(28	)		(111	)		(101	)			(142	)			(132	)
Operating income before catastrophe losses			$	72		$	71		$	82	$	115		$	143		$	137		$	143		$	279			$	394			$	476
Diluted per share data
Net income (loss)			$	(0.12	)	$	0.22		$	0.99	$	1.50		$	0.38		$	(0.26	)	$	0.10		$	0.13			$	1.64			$	2.62
Net realized investment gains and losses				(0.09	)		(0.01	)		0.42		1.05			(0.04	)		(0.92	)		(0.10	)		(0.95	)			0.10				0.52
Operating income (loss)				(0.03	)		0.23			0.57		0.45			0.42			0.66			0.20			1.08				1.54				2.10
Less catastrophe losses				(0.47	)		(0.21	)		0.06		(0.25	)		(0.45	)		(0.17	)		(0.68	)		(0.62	)			(0.87	)			(0.81	)
Operating income before catastrophe losses			$	0.44		$	0.44		$	0.51	$	0.70		$	0.87		$	0.83		$	0.88		$	1.70			$	2.41			$	2.91

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.

2009 Second-Quarter Supplement

7

Cincinnati Financial Corporation Insurance Subsidiaries
Selected Balance Sheet Data

(Dollars in millions)	12/31/2009		9/30/2009		6/30/2009			3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Cincinnati Insurance Consolidated (including CSU)
Fixed maturities (fair value)					$	5,169		$	4,804		$	4,309		$	4,183		$	4,304		$	4,351
Equities (fair value)						2,737			1,986			2,432			3,210			3,537			4,226
Short-term investments (fair value)						11			13			19			162			—			51
Fixed maturities — pretax net unrealized gain (loss)						25			(36	)		(108	)		(132	)		(33	)		39
Equities — pretax net unrealized gain						487			347			627			1,012			1,227			1,831
Loss and loss expense reserves — STAT						3,674			3,555			3,494			3,507			3,534			3,448
Equity GAAP						3,795			3,512			3,667			3,947			4,011			4,498
Surplus — STAT						3,241			3,105			3,360			3,687			3,650			4,027
The Cincinnati Life Insurance Company
Fixed maturities (fair value)					$	1,694		$	1,534		$	1,467		$	1,483		$	1,551		$	1,534
Equities (fair value)						103			89			122			200			265			307
Short-term investments (fair value)						1			—			—			—			—			—
Fixed maturities — pretax net unrealized gain (loss)						(43	)		(94	)		(115	)		(79	)		(35	)		—
Equities — pretax net unrealized gain (loss)						(8	)		(27	)		(7	)		61			92			127
Equity — GAAP						563			454			471			530			617			661
Surplus — STAT						270			254			290			371			420			453
		12/31/2007		9/30/2007		6/30/2007			3/31/2007			12/31/2006			9/30/2006			6/30/2006			3/31/2006
Cincinnati Insurance Consolidated (including CSU)
Fixed maturities (fair value)	$	4,295	$	4,366	$	4,367		$	4,362		$	4,296		$	4,258		$	4,160		$	4,189
Equities (fair value)		4,595		5,201		5,411			5,472			5,494			5,134			4,827			4,946
Short-term investments (fair value)		50		19		72			3			92			—			—			126
Fixed maturities — pretax net unrealized gain (loss)		58		23		(30	)		44			47			51			(55	)		2
Equities — pretax net unrealized gain		2,077		2,657		2,917			3,017			3,166			2,859			2,621			2,758
Loss and loss expense reserves — STAT		3,398		3,461		3,374			3,373			3,356			3,314			3,237			3,169
Equity GAAP		4,784		5,282		5,404			5,272			5,261			5,073			4,702			4,730
Surplus — STAT		4,307		4,782		4,937			4,741			4,723			4,607			4,342			4,334
The Cincinnati Life Insurance Company
Fixed maturities (fair value)	$	1,465	$	1,475	$	1,415		$	1,384		$	1,381		$	1,399		$	1,344		$	1,338
Equities (fair value)		371		459		478			539			532			494			458			470
Short-term investments (fair value)		51		18		29			16			3			—			—			20
Fixed maturities — pretax net unrealized gain (loss)		6		4		(4	)		20			15			17			(17	)		6
Equities — pretax net unrealized gain (loss)		162		225		254			305			307			271			238			256
Equity — GAAP		685		724		730			739			719			688			652			666
Surplus — STAT		477		485		491			483			479			461			459			470

2009 Second-Quarter Supplement

8

Consolidated Cincinnati Insurance Companies
Statutory Statements of Income

	For the Three Months Ended June 30,												For the Six Months Ended June 30,
(Dollars in millions)	2009			2008			Change			% Change			2009			2008			Change			% Change
Underwriting income
Net premiums written	$	723		$	790		$	(67	)		(8.5	)	$	1,501		$	1,566		$	(65	)		(4.1	)
Unearned premiums increase		(10	)		29			(39	)	nm				36			54			(18	)		(33.8	)
Earned premiums	$	733		$	761		$	(28	)		(3.7	)	$	1,465		$	1,512		$	(47	)		(3.1	)
Losses incurred	$	524		$	479		$	45			9.5		$	982		$	897		$	85			9.5
Allocated loss expenses incurred		49			33			16			49.7			85			70			15			21.6
Unallocated loss expenses incurred		46			46			—			(0.1	)		96			92			4			4.2
Other underwriting expenses incurred		226			226			—			0.1			462			459			3			0.7
Workers compensation dividend incurred		6			(4	)		10		nm				10			1			9			582.8
Total underwriting deductions	$	851		$	780		$	71			9.1		$	1,635		$	1,519		$	116			7.6
Net underwriting loss	$	(118	)	$	(20	)	$	(98	)		505.8		$	(170	)	$	(7	)	$	(163	)	nm
Investment income
Gross investment income earned	$	81		$	90		$	(9	)		(10.1	)	$	167		$	185		$	(18	)		(9.9	)
Net investment income earned		80			89			(9	)		(10.1	)		165			183			(18	)		(10.0	)
Net realized capital gains		(6	)		(4	)		(2	)		62.8			(39	)		(94	)		55			(58.5	)
Net investment gains (excl. subs)	$	74		$	85		$	(11	)		(13.1	)	$	125		$	88		$	37			41.8
Dividend from subsidiary		—			—			—		nm				—			—			—		nm
Net investment gains (net of tax)	$	74		$	85		$	(11	)		(13.1	)	$	125		$	88		$	37			41.8
Other income	$	1		$	1		$	—			51.9		$	2		$	1		$	1			104.1
Net income before federal income taxes	$	(43	)	$	67		$	(110	)	nm			$	(42	)	$	82		$	(124	)	nm
Federal and foreign income taxes incurred	$	(29	)	$	16		$	(46	)	nm			$	(30	)	$	84		$	(115	)	nm
Net income (loss) (statutory)	$	(14	)	$	50		$	(64	)	nm			$	(12	)	$	(2	)	$	(10	)		468.9

*	Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.
*	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.

2009 Second-Quarter Supplement

9

Consolidated Cincinnati Insurance Companies — All Lines
Statutory Quarterly Analysis
(Based on reported data — see Page 18 for adjusted data)

						Three months ended															Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Net premiums written			$	723		$	778		$	717		$	727		$	790		$	776		$	1,501		$	1,566			$	2,292			$	3,010
Net premiums earned			$	733		$	732		$	747		$	751		$	761		$	751		$	1,465		$	1,512			$	2,263			$	3,010
Losses paid			$	412		$	401		$	383		$	467		$	396		$	383		$	813		$	778			$	1,245			$	1,629
Loss reserve change				112			56			(1	)		(11	)		83			35			169			119				108				107
Total losses incurred			$	524		$	457		$	382		$	456		$	479		$	418		$	982		$	897			$	1,353			$	1,736
Allocated loss expense paid				42			30			39			35			32			25			71			58				93				131
Allocated loss expense reserve change				7			6			(12	)		(16	)		1			12			14			12				(4	)			(16	)
Total allocated loss expense incurred			$	49		$	36		$	27		$	19		$	33		$	37		$	85		$	70			$	89			$	115
Unallocated loss expense paid				42			48			62			47			43			43			91			86				133				195
Unallocated loss expense reserve change				4			2			3			1			3			3			5			6				7				10
Total unallocated loss expense incurred			$	46		$	50		$	65		$	48		$	46		$	46		$	96		$	92			$	140			$	205
Underwriting expenses incurred				232			240			264			241			223			238			472			460				701				971
Underwriting (loss) profit			$	(118	)	$	(51	)	$	9		$	(13	)	$	(20	)	$	12		$	(170	)	$	(7	)		$	(20	)		$	(17	)
Ratio Data
Loss ratio				71.6	%		62.5	%		51.2	%		60.8	%		63.0	%		55.6	%		67.0	%		59.3	%			59.8	%			57.7	%
Allocated loss expense ratio				6.7			4.9			3.5			2.5			4.3			5.0			5.8			4.6				3.9				3.8
Unallocated loss expense ratio				6.3			6.8			8.7			6.4			6.1			6.1			6.6			6.1				6.2				6.8
Net underwriting expense ratio				32.0			30.9			36.8			33.1			28.1			30.6			31.4			29.3				30.6				32.1
Statutory combined ratio				116.6	%		105.1	%		100.2	%		102.8	%		101.5	%		97.3	%		110.8	%		99.3	%			100.5	%			100.4	%
Statutory combined ratio excluding catastrophes				100.5	%		97.9	%		102.3	%		94.4	%		86.6	%		91.5	%		99.2	%		89.0	%			90.8	%			93.6	%
Loss Detail
New losses greater than $4,000,000			$	20		$	9		$	10		$	10		$	18		$	—		$	30		$	26			$	36			$	46
New losses $2,000,000-$4,000,000				21			17			19			17			25			22			39			39				56				75
New losses $1,000,000-$2,000,000				18			11			22			33			17			22			28			39				72				94
New losses $750,000-$1,000,000				7			11			12			14			13			9			19			21				35				48
New losses $500,000-$750,000				9			16			16			16			13			11			24			24				40				56
New losses $250,000-$500,000				31			35			35			33			27			29			66			57				90				124
Case reserve development above $250,000				70			56			82			59			54			49			125			103				162				245
Large losses subtotal			$	176		$	155		$	196		$	182		$	167		$	142		$	331		$	309			$	491			$	688
IBNR incurred				39			18			(16	)		(6	)		(6	)		6			57			—				(6	)			(22	)
Catastrophe losses incurred				118			53			(16	)		63			113			43			171			156				219				203
Remaining incurred				191			231			218			217			205			227			423			432				649				867
Total losses incurred			$	524		$	457		$	382		$	456		$	479		$	418		$	982		$	897			$	1,353			$	1,736
Loss Ratio
New losses greater than $4,000,000				2.8	%		1.3	%		1.3	%		1.3	%		2.4	%		0.0	%		2.0	%		1.7	%			1.6	%			1.5	%
New losses $2,000,000-$4,000,000				2.9			2.4			2.5			2.2			3.3			2.9			2.6			2.6				2.5				2.5
New losses $1,000,000-$2,000,000				2.4			1.4			2.9			4.4			2.2			2.9			1.9			2.6				3.0				3.1
New losses $750,000-$1,000,000				1.0			1.5			1.6			1.9			1.7			1.1			1.3			1.4				1.6				1.6
New losses $500,000-$750,000				1.2			2.1			2.2			2.1			1.7			1.5			1.7			1.6				1.8				1.9
New losses $250,000-$500,000				4.2			4.8			4.6			4.4			3.6			3.9			4.5			3.7				4.0				4.1
Case reserve development above $250,000				9.6			7.6			11.0			7.9			7.1			6.5			8.5			6.9				7.2				8.1
Large losses subtotal				24.1	%		21.1	%		26.1	%		24.2	%		22.0	%		18.8	%		22.5	%		20.5	%			21.7	%			22.8	%
IBNR incurred				5.3			2.5			(2.1	)		(0.8	)		(0.9	)		0.8			3.9			0.0				(0.3	)			(0.7	)
Total catastrophe losses incurred				16.1			7.2			(2.1	)		8.4			14.9			5.7			11.6			10.3				9.7				6.8
Remaining incurred				26.1			31.7			29.3			29.0			27.0			30.2			29.0			28.5				28.7				28.8
Total loss ratio				71.6	%		62.5	%		51.2	%		60.8	%		63.0	%		55.5	%		67.0	%		59.3	%			59.8	%			57.7	%
Loss Claim Count
New losses greater than $4,000,000				4			2			2			2			5			2			6			7				9				11
New losses $2,000,000-$4,000,000				8			7			7			6			8			5			15			13				19				26
New losses $1,000,000-$2,000,000				14			9			17			27			13			19			23			32				59				76
New losses $750,000-$1,000,000				8			13			14			17			15			10			21			25				42				56
New losses $500,000-$750,000				14			28			28			28			23			21			42			44				72				100
New losses $250,000-$500,000				92			108			105			100			84			87			200			171				271				376
Case reserve development above $250,000				108			89			146			102			84			81			197			165				267				413
Large losses total				248			256			319			282			232			225			504			457				739				1,058

*	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.

2009 Second-Quarter Supplement

10

Consolidated Cincinnati Insurance Companies — Commercial Lines

Statutory Quarterly Analysis

(Based on reported data — see Page 19 for adjusted data)

	Three months ended																				Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Net premiums written			$	524		$	626		$	552		$	538		$	597		$	625		$	1,149		$	1,222			$	1,759			$	2,311
Net premiums earned			$	556		$	557		$	573		$	582		$	586		$	574		$	1,112		$	1,161			$	1,743			$	2,316
Losses paid			$	275		$	271		$	262		$	326		$	280		$	266		$	546		$	546			$	871			$	1,133
Loss reserve change				92			50			26			(3	)		67			32			142			100				97				123
Total losses incurred			$	367		$	321		$	288		$	323		$	347		$	298		$	688		$	646			$	968			$	1,256
Allocated loss expense paid				39			26			35			31			28			22			64			50				82				116
Allocated loss expense reserve change				5			6			(13	)		(15	)		1			12			11			13				(3	)			(16	)
Total allocated loss expense incurred			$	44		$	32		$	22		$	16		$	29		$	34		$	75		$	63			$	79			$	100
Unallocated loss expense paid				28			34			42			34			31			30			62			61				95				137
Unallocated loss expense reserve change				3			2			7			(1	)		1			3			5			4				4				10
Total unallocated loss expense incurred			$	31		$	36		$	49		$	33		$	32		$	33		$	67		$	65			$	99			$	147
Underwriting expenses incurred				170			183			204			180			166			186			353			352				532				742
Underwriting (loss) profit			$	(56	)	$	(15	)	$	10		$	30		$	12		$	23		$	(71	)	$	35			$	65			$	71
Ratio Data
Loss ratio				66.0	%		57.6	%		50.3	%		55.4	%		59.2	%		52.0	%		61.8	%		55.6	%			55.5	%			54.2	%
Allocated loss expense ratio				7.8			5.8			3.8			2.7			5.0			5.9			6.8			5.4				4.5				4.3
Unallocated loss expense ratio				5.7			6.4			8.4			5.7			5.5			5.7			6.0			5.7				5.7				6.4
Net underwriting expense ratio				32.5			29.2			36.5			33.5			27.8			29.7			30.8			28.8				30.2				31.7
Statutory combined ratio				112.0	%		99.0	%		99.0	%		97.3	%		97.5	%		93.3	%		105.4	%		95.5	%			95.9	%			96.6	%
Statutory combined ratio excluding catastrophes				101.7	%		96.5	%		100.5	%		93.3	%		86.2	%		89.4	%		99.0	%		87.8	%			89.5	%			92.2	%
Loss Detail
New losses greater than $4,000,000			$	21		$	9		$	10		$	5		$	18		$	—		$	30		$	26			$	31			$	41
New losses $2,000,000-$4,000,000				22			17			19			17			25			22			38			40				56				75
New losses $1,000,000-$2,000,000				15			9			18			26			15			18			24			33				60				78
New losses $750,000-$1,000,000				7			9			10			12			11			8			16			19				31				41
New losses $500,000-$750,000				7			12			11			14			12			9			19			20				34				45
New losses $250,000-$500,000				24			26			28			25			22			23			51			45				70				98
Case reserve development above $250,000				63			51			76			57			51			44			114			96				153				229
Large losses subtotal			$	159		$	133		$	172		$	156		$	154		$	124		$	292		$	279			$	435			$	607
IBNR incurred				38			18			(12	)		(7	)		(8	)		6			56			(2	)			(10	)			(22	)
Catastrophe losses incurred				57			14			(9	)		23			66			22			71			89				112				103
Remaining incurred				113			156			137			151			135			146			269			280				431				568
Total losses incurred			$	367		$	321		$	288		$	323		$	347		$	298		$	688		$	646			$	968			$	1,256
Loss Ratio
New losses greater than $4,000,000				3.7	%		1.7	%		1.8	%		0.9	%		3.1	%		0.0	%		2.7	%		2.3	%			1.8	%			1.8	%
New losses $2,000,000-$4,000,000				3.9			3.1			3.2			2.9			4.3			3.9			3.5			3.4				3.2				3.2
New losses $1,000,000-$2,000,000				2.6			1.6			3.1			4.5			2.5			3.2			2.1			2.9				3.4				3.4
New losses $750,000-$1,000,000				1.3			1.6			1.7			2.1			1.9			1.3			1.5			1.6				1.8				1.8
New losses $500,000-$750,000				1.3			2.1			2.0			2.3			2.0			1.5			1.7			1.7				1.9				2.0
New losses $250,000-$500,000				4.4			4.7			4.9			4.3			3.8			4.0			4.5			3.9				4.0				4.2
Case reserve development above $250,000				11.4			9.1			13.2			9.8			8.7			7.8			10.3			8.3				8.8				9.9
Large losses subtotal				28.6	%		23.9	%		29.9	%		26.8	%		26.3	%		21.7	%		26.3	%		24.0	%			24.9	%			26.3	%
IBNR incurred				6.7			3.3			(2.1	)		(1.3	)		(1.4	)		1.0			5.0			(0.2	)			(0.6	)			(0.9	)
Total catastrophe losses incurred				10.3			2.5			(1.5	)		4.0			11.3			3.9			6.4			7.7				6.4				4.5
Remaining incurred				20.4			27.9			24.0			25.9			23.0			25.4			24.1			24.2				24.8				24.3
Total loss ratio				66.0	%		57.6	%		50.3	%		55.4	%		59.2	%		52.0	%		61.8	%		55.7	%			55.5	%			54.2	%
Loss Claim Count
New losses greater than $4,000,000				4			2			2			1			4			2			6			4				7				9
New losses $2,000,000-$4,000,000				8			7			7			6			9			5			15			14				20				27
New losses $1,000,000-$2,000,000				11			8			14			21			12			16			19			22				49				63
New losses $750,000-$1,000,000				8			10			11			15			13			9			18			21				37				48
New losses $500,000-$750,000				12			21			19			24			21			16			33			40				61				80
New losses $250,000-$500,000				72			81			85			74			67			68			153			166				209				294
Case reserve development above $250,000				93			77			129			95			76			74			170			206				245				374
Large losses total				208			206			267			236			202			190			414			473				628				895

*	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.

2009 Second-Quarter Supplement

11

Consolidated Cincinnati Insurance Companies — Personal Lines

Statutory Quarterly Analysis

(Based on reported data — see Page 20 for adjusted data)

	Three months ended																				Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Net premiums written			$	190		$	145		$	160		$	184		$	191		$	150		$	334		$	341			$	525			$	685
Net premiums earned			$	172		$	171		$	171		$	167		$	174		$	177		$	343		$	351			$	518			$	689
Losses paid			$	137		$	130		$	123		$	141		$	116		$	116		$	267		$	232			$	373			$	496
Loss reserve change				18			4			(31	)		(8	)		16			3			22			19				11				(20	)
Total losses incurred			$	155		$	134		$	92		$	133		$	132		$	119		$	289		$	251			$	384			$	476
Allocated loss expense paid				4			3			4			4			4			3			7			7				11				15
Allocated loss expense reserve change				—			—			1			(1	)		(1	)		—			—			—				(1	)			(1	)
Total allocated loss expense incurred			$	4		$	3		$	5		$	3		$	3		$	3		$	7		$	7			$	10			$	14
Unallocated loss expense paid				14			15			19			13			13			13			28			25				38				57
Unallocated loss expense reserve change				1			—			(3	)		1			1			1			—			2				3				1
Total unallocated loss expense incurred			$	15		$	15		$	16		$	14		$	14		$	14		$	28		$	27			$	41			$	58
Underwriting expenses incurred				56			51			58			56			55			51			108			106				162				224
Underwriting loss			$	(58	)	$	(32	)	$	—		$	(39	)	$	(30	)	$	(10	)	$	(89	)	$	(40	)		$	(79	)		$	(83	)
Ratio Data
Loss ratio				90.1	%		78.3	%		53.6	%		79.7	%		75.6	%		67.4	%		84.2	%		71.5	%			74.1	%			69.0	%
Allocated loss expense ratio				2.4			1.9			2.7			1.8			1.9			1.9			2.2			1.9				1.9				2.1
Unallocated loss expense ratio				8.2			8.3			9.6			8.7			7.9			7.4			8.3			7.6				8.0				8.3
Net underwriting expense ratio				29.8			35.4			36.2			30.4			28.9			34.1			32.1			31.2				30.9				32.2
Statutory combined ratio				130.5	%		123.9	%		102.1	%		120.6	%		114.3	%		110.8	%		126.8	%		112.2	%			114.9	%			111.6	%
Statutory combined ratio excluding catastrophes				95.1	%		101.3	%		106.2	%		96.8	%		87.3	%		99.2	%		97.8	%		92.9	%			94.2	%			97.1	%
Loss Detail
New losses greater than $4,000,000			$	—		$	—		$	—		$	5		$	—		$	—		$	—		$	—			$	5			$	5
New losses $2,000,000-$4,000,000				—			—			—			—			—			—			—			—				—				—
New losses $1,000,000-$2,000,000				3			1			4			6			2			4			5			5				12				16
New losses $750,000-$1,000,000				—			2			3			2			2			1			2			3				4				7
New losses $500,000-$750,000				1			4			5			2			1			3			5			4				6				11
New losses $250,000-$500,000				7			9			7			8			5			6			15			12				20				26
Case reserve development above $250,000				7			5			6			2			3			4			12			7				9				16
Large losses subtotal			$	18		$	21		$	25		$	25		$	13		$	18		$	39		$	31			$	56			$	81
IBNR incurred				—			(1	)		(4	)		2			2			—			(1	)		2				4				—
Catastrophe losses incurred				61			39			(7	)		40			47			21			100			67				107				100
Remaining incurred				76			75			78			66			70			80			151			151				217				295
Total losses incurred			$	155		$	134		$	92		$	133		$	132		$	119		$	289		$	251			$	384			$	476
Loss Ratio
New losses greater than $4,000,000				0.0	%		0.0	%		0.0	%		3.0	%		0.0	%		0.0	%		0.0	%		0.0	%			1.0	%			0.7	%
New losses $2,000,000-$4,000,000				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0				0.0				0.0
New losses $1,000,000-$2,000,000				1.9			0.8			2.4			3.8			1.1			2.1			1.4			1.6				2.3				2.3
New losses $750,000-$1,000,000				0.0			1.4			1.5			1.0			1.1			0.4			0.7			0.8				0.8				1.0
New losses $500,000-$750,000				0.8			2.2			2.9			1.3			0.7			1.5			1.5			1.1				1.2				1.6
New losses $250,000-$500,000				4.0			5.0			3.9			4.8			3.0			3.6			4.5			3.3				3.8				3.8
Case reserve development above $250,000				3.7			3.0			3.8			1.4			1.5			2.5			3.3			1.9				1.7				2.3
Large losses subtotal				10.4	%		12.4	%		14.5	%		15.3	%		7.5	%		10.0	%		11.4	%		8.7	%			10.8	%			11.7	%
IBNR incurred				0.1			(0.6	)		(2.3	)		1.0			0.9			0.2			(0.3	)		0.6				0.7				0.0
Total catastrophe losses incurred				35.4			22.6			(4.1	)		23.8			27.0			11.6			29.0			19.3				20.7				14.5
Remaining incurred				44.2			43.9			45.5			39.6			40.2			45.6			44.1			42.9				41.9				42.8
Total loss ratio				90.1	%		78.3	%		53.6	%		79.7	%		75.6	%		67.4	%		84.2	%		71.5	%			74.1	%			69.0	%
Loss Claim Count
New losses greater than $4,000,000				—			—			—			1			—			—			—			—				1				—
New losses $2,000,000-$4,000,000				—			—			—			—			—			—			—			—				—				3
New losses $1,000,000-$2,000,000				3			1			3			6			1			3			4			4				10				7
New losses $750,000-$1,000,000				—			3			3			2			2			1			3			6				5				14
New losses $500,000-$750,000				2			7			9			4			2			5			9			16				11				51
New losses $250,000-$500,000				20			27			20			26			17			19			47			47				62				28
Case reserve development above $250,000				15			12			17			7			8			7			27			29				22				79
Large losses total				40			50			52			46			30			35			90			102				111				182

*	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.

2009 Second-Quarter Supplement

12

Consolidated Cincinnati Insurance Companies

Agency Direct Written Premiums by Risk State by Line of Business for the Six Months Ended June 30, 2009

	Standard Market																				Surplus Lines						Standard Market						*Consolidated
	Commercial														Personal						Commercial		Consolidated				Commercial			Personal			Total
(Dollars in millions)	Comm						Workers’		Specialty		Surety &		Mach. &		Pers		Home		Other		Casualty		2009		2008		Change			Change			Change
Risk State	Casualty		Comm Prop		Comm Auto		Comp		Packages		Exec Risk		Equip		Auto		Owner		Personal		& Prop		Total		Total		%			%			%
AL	$	9.2	$	8.5	$	3.8	$	0.4	$	4.1	$	1.2	$	0.3	$	8.1	$	12.4	$	2.7	$	0.4	$	51.1	$	51.9		(5.2	)		1.3			(1.7	)
AZ		5.6		3.3		4.7		0.6		0.4		0.4		0.3		0.3		0.3		0.1		0.2		16.5		16.9		(7.3	)		397.0			(2.3	)
AR		4.5		5.1		3.3		2.3		2.1		0.9		0.2		1.4		1.5		0.5		0.3		21.9		21.9		(2.4	)		5.0			0.0
CO		—		0.2		0.1		0.3		—		0.1		—		—		0.1		—		—		0.7		0.9		(13.4	)		(8.5	)		(12.9	)
DE		0.6		0.5		0.5		1.2		0.1		0.1		—		—		—		—		—		3.1		2.6		19.3			(61.4	)		19.3
FL		11.9		11.8		5.0		0.6		1.0		1.1		0.5		5.6		9.0		1.6		—		48.1		58.2		(21.3	)		(8.0	)		(17.3	)
GA		13.4		10.6		9.6		7.5		3.8		3.5		0.5		15.1		13.8		4.1		1.4		83.3		83.1		(2.6	)		1.6			0.2
ID		4.4		2.2		2.8		0.1		0.5		0.6		0.1		0.1		—		—		0.1		11.0		12.1		(10.2	)	nm				(8.6	)
IL		32.5		22.0		15.7		27.3		6.5		3.8		1.5		11.8		9.1		3.3		1.8		135.4		146.8		(10.3	)		1.5			(7.8	)
IN		22.4		19.0		12.7		14.5		4.3		3.2		1.4		12.9		11.9		3.6		2.3		108.1		112.1		(6.0	)		(1.8	)		(3.7	)
IA		10.7		7.1		5.0		12.6		2.2		1.4		0.7		1.6		1.6		0.9		0.2		44.0		43.8		1.0			(8.0	)		0.5
KS		4.1		4.1		2.3		4.7		1.6		1.0		0.2		2.0		2.5		0.6		0.1		23.2		22.9		2.3			(4.9	)		1.2
KY		11.1		10.8		6.7		2.0		2.9		1.8		0.4		10.0		7.6		2.2		0.7		56.2		55.0		0.0			2.3			2.1
MD		6.9		3.2		5.3		4.8		0.6		0.8		0.2		0.1		0.8		0.3		0.3		23.2		23.9		(5.3	)		20.8			(2.8	)
MI		15.3		11.0		7.0		7.9		5.8		3.1		0.9		5.6		6.5		1.6		0.9		65.6		67.1		(4.3	)		(0.3	)		(2.2	)
MN		11.1		8.2		4.8		3.9		1.6		1.1		0.6		3.2		2.8		1.6		0.6		39.5		40.9		(6.8	)		4.5			(3.3	)
MO		11.0		10.2		6.4		7.7		2.8		1.5		0.5		1.5		2.2		0.5		0.6		44.9		46.2		(5.6	)		12.7			(2.8	)
MT		7.3		3.5		3.6		0.1		0.5		0.2		0.2		0.4		0.4		0.1		0.2		16.5		17.0		(7.9	)		196.1			(3.1	)
NE		3.2		2.8		2.0		3.8		0.8		0.5		0.2		0.4		0.5		0.2		0.1		14.5		14.7		(2.1	)		(1.0	)		(1.2	)
NH		1.4		0.9		0.7		1.3		0.4		0.2		0.1		0.3		0.3		0.2		0.1		5.8		6.1		(8.7	)		(2.2	)		(5.9	)
NM		1.3		0.5		0.8		0.3		0.1		0.3		—		—		—		—		0.1		3.3		1.8		80.1		nm				84.6
NY		17.6		4.8		6.3		1.4		0.7		1.3		0.3		—		—		—		0.2		32.5		29.0		11.5			(9.1	)		12.2
NC		17.2		12.5		10.3		13.3		6.7		3.9		0.8		1.9		2.0		1.6		0.8		71.0		77.8		(13.9	)		102.9			(8.8	)
ND		3.0		1.7		1.4		—		0.4		0.4		0.1		0.2		0.2		0.1		—		7.5		7.6		(2.7	)		4.9			(1.6	)
OH		76.2		46.9		31.1		—		9.5		12.0		2.5		58.6		40.8		15.2		2.4		295.0		309.8		(4.8	)		(6.2	)		(4.9	)
PA		24.4		15.0		15.2		27.3		4.6		2.7		0.9		3.5		2.7		1.7		0.8		98.7		105.0		(6.9	)		(3.6	)		(6.0	)
SC		5.7		3.7		3.1		3.0		1.3		1.1		0.2		0.1		0.1		0.1		0.2		18.5		21.1		(14.3	)		127.5			(12.3	)
SD		2.2		1.3		1.0		2.6		0.3		0.2		0.1		—		—		—		0.1		7.8		9.6		(19.5	)		5.0			(18.7	)
TN		12.2		9.6		7.3		5.5		4.9		2.0		0.6		4.2		4.4		1.6		0.6		52.9		55.2		(6.6	)		1.1			(4.2	)
TX		1.5		2.3		0.8		1.0		0.1		0.1		0.2		—		—		0.1		0.1		6.3		3.1		96.7			(95.5	)		100.1
UT		5.6		2.6		3.1		—		0.3		1.1		0.2		0.4		0.2		—		0.6		14.1		13.2		(1.4	)	nm				7.9
VT		2.5		2.0		1.5		2.8		0.6		0.4		0.1		0.3		0.4		0.1		0.1		10.9		11.6		(7.3	)		(5.6	)		(5.9	)
VA		16.3		12.1		10.1		9.3		2.5		3.3		0.6		4.3		3.6		1.4		0.6		64.0		69.4		(9.5	)		(2.6	)		(7.8	)
WA		0.8		0.4		0.5		—		—		0.1		—		—		—		—		—		1.8		0.7		151.4		nm				156.1
WV		3.4		2.3		2.2		0.4		1.3		0.5		0.2		—		0.3		0.1		0.4		11.0		11.2		(5.8	)		(7.8	)		(2.1	)
WI		14.3		9.0		6.6		16.0		2.1		1.3		0.8		4.2		3.3		1.6		0.6		59.7		60.6		(1.1	)		(5.3	)		(1.2	)
All Other		1.8		1.5		1.3		2.2		—		0.8		0.1		—		—		—		—		7.8		7.0		12.6			(38.5	)		12.3
Total	$	392.7	$	273.0	$	204.6	$	188.6	$	77.3	$	57.7	$	16.6	$	158.3	$	141.4	$	47.7	$	17.9	$	1,575.5	$	1,637.9		(5.7	)		(1.0	)		(3.8	)
Other Direct		—		0.8		—		1.9		—		—		—		—		1.6		—		—		4.4		7.3		(52.6	)		10.9			(40.0	)
Total Direct	$	392.7	$	273.8	$	204.6	$	190.5	$	77.3	$	57.7	$	16.6	$	158.3	$	143.0	$	47.7	$	17.9	$	1,579.9	$	1,645.2		(5.9	)		(0.9	)		(4.0	)

	Surplus direct premiums written were $17.9 million and $3.7 million for the six months ended June 30, 2009 and 2008, respectively.
*	Consolidated change consists of commercial lines, personal lines and E&S.
	Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Percentage changes are calculated based on whole dollar amounts.

2009 Second-Quarter Supplement

13

Quarterly Property Casualty Data — Commercial Lines

(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Commercial casualty:
Written premiums			$	171		$	209		$	183		$	171		$	199		$	211		$	379		$	410			$	582			$	764
Earned premiums				180			187			183			197			194			190			366			384				580				763
Loss and loss expenses ratio				54.2	%		55.2	%		23.9	%		44.4	%		39.8	%		58.3	%		54.7	%		48.9	%			47.4	%			41.7	%
Less catastrophe loss ratio				—			—			—			—			—			—			—			—				—				—
Loss and loss expenses excluding catastrophe loss ratio				54.2	%		55.2	%		23.9	%		44.4	%		39.8	%		58.3	%		54.7	%		48.9	%			47.4	%			41.7	%
Commercial property:
Written premiums			$	113		$	132		$	117		$	117		$	124		$	124		$	245		$	247			$	364			$	481
Earned premiums				120			121			122			120			123			122			241			244				364				487
Loss and loss expenses ratio				88.3	%		69.0	%		47.2	%		70.0	%		97.6	%		75.5	%		78.6	%		86.6	%			81.1	%			72.6	%
Less catastrophe loss ratio				23.5			7.4			(5.3	)		15.6			38.0			16.5			15.4			27.3				23.4				16.2
Loss and loss expenses excluding catastrophe loss ratio				64.8	%		61.6	%		52.5	%		54.4	%		59.6	%		59.0	%		63.2	%		59.3	%			57.7	%			56.4	%
Commercial auto:
Written premiums			$	94		$	110		$	94		$	93		$	108		$	107		$	204		$	215			$	308			$	402
Earned premiums				98			99			103			103			104			101			197			205				308				411
Loss and loss expenses ratio				62.5	%		59.7	%		94.8	%		63.2	%		67.5	%		63.4	%		61.1	%		65.5	%			64.7	%			72.3	%
Less catastrophe loss ratio				3.3			(0.1	)		(0.8	)		0.1			3.4			(0.4	)		1.6			1.5				1.0				0.6
Loss and loss expenses excluding catastrophe loss ratio				59.2	%		59.8	%		95.6	%		63.1	%		64.1	%		63.8	%		59.5	%		64.0	%			63.7	%			71.7	%
Workers’ compensation:
Written premiums			$	79		$	104		$	89		$	84		$	95		$	114		$	183		$	209			$	292			$	382
Earned premiums				88			83			93			93			94			94			171			189				282				375
Loss and loss expenses ratio				130.2	%		117.5	%		128.2	%		90.9	%		78.3	%		64.8	%		124.0	%		71.5	%			77.9	%			90.4	%
Less catastrophe loss ratio				—			—			—			—			—			—			—			—				—				—
Loss and loss expenses excluding catastrophe loss ratio				130.2	%		117.5	%		128.2	%		90.9	%		78.3	%		64.8	%		124.0	%		71.5	%			77.9	%			90.4	%
Specialty package:
Written premiums			$	35		$	38		$	37		$	36		$	36		$	37		$	73		$	73			$	109			$	145
Earned premiums				37			35			36			35			36			35			72			72				107				144
Loss and loss expenses ratio				114.3	%		96.0	%		40.6	%		80.2	%		109.7	%		63.4	%		105.4	%		86.8	%			84.6	%			73.5	%
Less catastrophe loss ratio				68.8			13.7			(3.8	)		12.2			43.9			8.1			41.9			26.2				21.5				15.2
Loss and loss expenses excluding catastrophe loss ratio				45.5	%		82.3	%		44.4	%		68.0	%		65.8	%		55.3	%		63.5	%		60.6	%			63.1	%			58.3	%
Surety and executive risk:
Written premiums			$	25		$	25		$	24		$	29		$	28		$	25		$	50		$	54			$	82			$	107
Earned premiums				25			25			28			27			28			25			50			53				80				107
Loss and loss expenses ratio				67.0	%		30.3	%		76.5	%		73.6	%		92.0	%		45.9	%		24.0	%		70.1	%			71.3	%			72.6	%
Less catastrophe loss ratio				—			—			—			—			—			—			48.8			—				—				—
Loss and loss expenses excluding catastrophe loss ratio				67.0	%		30.3	%		76.5	%		73.6	%		92.0	%		45.9	%		(24.8)	%		70.1	%			71.3	%			72.6	%
Machinery and equipment:
Written premiums			$	7		$	8		$	8		$	8		$	7		$	7		$	15		$	14			$	22			$	30
Earned premiums				8			7			8			7			7			7			15			14				22				29
Loss and loss expense ratio				39.7	%		59.3	%		50.4	%		32.4	%		34.1	%		53.3	%		49.3	%		43.6	%			39.8	%			42.5	%
Less catastrophe loss ratio				1.2			4.5			(0.2	)		2.8			1.0			—			2.8			0.6				1.3				0.9
Loss and loss expense excluding catastrophe loss ratio				38.5	%		54.8	%		50.6	%		29.6	%		33.1	%		53.3	%		46.5	%		43.0	%			38.5	%			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.

14

Quarterly Property Casualty Data — Personal Lines

(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Personal auto:
Written premiums			$	89		$	68		$	73		$	88		$	89		$	69		$	157		$	158			$	246			$	320
Earned premiums				80			79			80			81			82			83			159			164				245				325
Loss and loss expenses ratio				75.7	%		63.6	%		81.0	%		63.7	%		56.8	%		67.6	%		69.7	%		62.2	%			62.7	%			67.2	%
Less catastrophe loss ratio				3.1			0.3			(1.6	)		1.7			3.1			1.7			1.7			2.4				2.2				1.2
Loss and loss expenses excluding catastrophe loss ratio				72.6	%		63.3	%		82.6	%		62.0	%		53.7	%		65.9	%		68.0	%		59.8	%			60.5	%			66.0	%
Homeowner:
Written premiums			$	76		$	56		$	65		$	72		$	79		$	60		$	132		$	139			$	212			$	277
Earned premiums				70			70			69			64			71			72			140			143				208				277
Loss and loss expenses ratio				147.8	%		132.9	%		52.9	%		122.8	%		130.7	%		91.4	%		140.3	%		110.9	%			114.6	%			99.2	%
Less catastrophe loss ratio				77.6			51.5			(8.5	)		54.5			60.0			25.2			64.5			42.5				46.2				32.5
Loss and loss expenses excluding catastrophe loss ratio				70.2	%		81.4	%		61.4	%		68.3	%		70.7	%		66.2	%		75.8	%		68.4	%			68.4	%			66.7	%
Other personal:
Written premiums			$	25		$	21		$	21		$	24		$	23		$	21		$	45		$	44			$	67			$	88
Earned premiums				22			22			22			22			21			22			44			44				65				87
Loss and loss expenses ratio				42.6	%		37.8	%		51.8	%		91.5	%		43.2	%		62.2	%		40.2	%		52.9	%			65.8	%			62.2	%
Less catastrophe loss ratio				18.7			11.0			0.4			14.5			8.0			4.1			14.8			6.0				8.9				6.7
Loss and loss expenses excluding catastrophe loss ratio				23.9	%		26.8	%		51.4	%		77.0	%		35.2	%		58.1	%		25.4	%		46.9	%			56.9	%			55.5	%

* 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.

15

Consolidated Cincinnati Insurance Companies

Quarterly Detailed Loss Analysis

	Three months ended																				Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
All Lines
Loss and loss expenses:
Loss and loss expenses — current AY			$	529		$	482		$	610		$	564		$	532		$	467		$	1,010		$	999			$	1,564			$	2,173
Loss and loss expenses — prior AY’s				(27	)		9			(120	)		(103	)		(87	)		(9	)		(18	)		(96	)			(198	)			(317	)
Catastrophes — current AY				120			55			(17	)		62			113			47			175			160				222				205
Catastrophes — prior AY’s				(2	)		(2	)		1			2			—			(4	)		(4	)		(4	)			(2	)			(1	)
Total			$	620		$	544		$	474		$	525		$	558		$	501		$	1,163		$	1,059			$	1,586			$	2,060
Ratio to Earned Premiums
Loss and loss expenses :
Loss and loss expenses — current AY				72.1	%		65.8	%		81.9	%		75.1	%		69.7	%		62.2	%		69.0	%		66.0	%			69.1	%			72.2	%
Loss and loss expenses — prior AY’s				(3.7	)		1.2			(16.2	)		(13.8	)		(11.3	)		(1.2	)		(1.2	)		(6.3	)			(8.7	)			(10.5	)
Catastrophes — current AY				16.3			7.5			(2.2	)		8.3			15.0			6.2			11.9			10.5				9.8				6.8
Catastrophes — prior AY’s				(0.2	)		(0.3	)		0.1			0.1			(0.1	)		(0.5	)		(0.3	)		(0.2	)			(0.2	)			0.0
Total				84.5	%		74.2	%		63.6	%		69.7	%		73.3	%		66.7	%		79.4	%		70.0	%			70.0	%			68.5	%
Commercial Lines
Loss and loss expenses:
Loss and loss expenses — current AY			$	403		$	363		$	464		$	436		$	416		$	354		$	766		$	770			$	1,207			$	1,671
Loss and loss expenses — prior AY’s				(18	)		11			(97	)		(87	)		(74	)		(11	)		(7	)		(85	)			(171	)			(268	)
Catastrophes — current AY				61			17			(9	)		23			66			25			78			92				115				106
Catastrophes — prior AY’s				(4	)		(3	)		—			1			—			(3	)		(7	)		(3	)			(2	)			(2	)
Total			$	442		$	388		$	358		$	373		$	408		$	365		$	830		$	774			$	1,149			$	1,507
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses — current AY				72.5	%		65.2	%		80.9	%		75.0	%		70.8	%		61.6	%		68.8	%		66.4	%			69.2	%			72.2	%
Loss and loss expenses — prior AY’s				(3.2	)		2.1			(17.0	)		(15.0	)		(12.4	)		(1.9	)		(0.6	)		(7.3	)			(9.7	)			(11.6	)
Catastrophes — current AY				10.9			3.1			(1.5	)		4.0			11.4			4.5			7.0			7.9				6.7				4.6
Catastrophes — prior AY’s				(0.7	)		(0.6	)		0.0			0.1			(0.1	)		(0.6	)		(0.6	)		(0.3	)			(0.2	)			(0.1	)
Total				79.5	%		69.8	%		62.4	%		64.0	%		69.7	%		63.6	%		74.6	%		66.7	%			66.0	%			65.1	%
Personal Lines
Loss and loss expenses:
Loss and loss expenses — current AY			$	121		$	115		$	143		$	127		$	114		$	113		$	237		$	228			$	355			$	498
Loss and loss expenses — prior AY’s				(9	)		(2	)		(23	)		(16	)		(12	)		2			(12	)		(11	)			(27	)			(50	)
Catastrophes — current AY				59			38			(8	)		39			47			22			97			68				107				99
Catastrophes — prior AY’s				2			1			1			1			—			(1	)		3			(1	)			—				1
Total			$	173		$	152		$	113		$	151		$	149		$	136		$	325		$	284			$	435			$	548
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses — current AY				70.8	%		67.4	%		83.8	%		75.6	%		65.6	%		64.1	%		69.0	%		64.8	%			68.4	%			72.3	%
Loss and loss expenses — prior AY’s				(5.4	)		(1.4	)		(13.7	)		(9.4	)		(7.2	)		1.0			(3.4	)		(3.1	)			(5.2	)			(7.2	)
Catastrophes — current AY				34.3			22.0			(4.7	)		23.3			27.0			11.9			28.1			19.4				20.7				14.4
Catastrophes — prior AY’s				1.1			0.6			0.5			0.5			0.0			(0.3	)		0.9			(0.1	)			0.1				0.1
Total				100.9	%		88.6	%		65.9	%		90.0	%		85.4	%		76.7	%		94.6	%		81.0	%			84.0	%			79.6	%

* 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.

2009 Second-Quarter Supplement

16

Cincinnati Insurance Group (Excludes CSU)
Loss and Loss Expense Analysis

			Paid										Loss												Loss
	Paid		loss		Total		Case			IBNR			expense			Total			Case			IBNR			expense		Total
(In millions)	losses		expense		paid		reserves			reserves			reserves			reserves			incurred			incurred			incurred		incurred
Gross loss and loss expense incurred at June 30, 2009
Commercial casualty	$	114	$	58	$	172	$	43		$	(17	)	$	5		$	30		$	157		$	(17	)	$	62	$	202
Commercial property		174		22		196		6			13			1			20			180			13			23		216
Commercial auto		110		19		129		(11	)		3			—			(8	)		99			3			19		120
Workers’ compensation		124		20		145		(4	)		69			9			74			121			69			29		219
Specialty packages		48		8		56		3			16			2			20			51			16			10		76
Surety and executive risk		22		5		27		(7	)		2			(1	)		(7	)		15			2			4		20
Machinery and equipment		6		1		6		—			—			—			—			6			—			1		6
Total commercial lines		599		132		731		29			86			16			129			627			85			147		860
Personal auto		102		14		116		(6	)		1			—			(5	)		96			1			14		111
Homeowners		153		18		171		5			17			2			24			158			17			20		196
Other personal		25		3		28		(8	)		(1	)		(1	)		(10	)		17			(1	)		2		18
Total personal lines		280		35		316		(9	)		17			1			9			271			17			36		325
Total property casualty group	$	879	$	167	$	1,046	$	20		$	103		$	16		$	138		$	899		$	102		$	183	$	1,185
Ceded loss and loss expense incurred at June 30, 2009
Commercial casualty	$	8	$	3	$	11	$	(5	)	$	(4	)	$	(1	)	$	(9	)	$	3		$	(4	)	$	2	$	2
Commercial property		27		—		27		1			(2	)		—			(1	)		28			(2	)		—		26
Commercial auto		1		—		1		(1	)		—			—			(1	)		—			—			—		0
Workers’ compensation		7		1		8		(4	)		3			—			(1	)		3			3			1		7
Specialty packages		1		—		1		(1	)		—			—			(1	)		1			—			—		1
Surety and executive risk		8		2		9		(14	)		—			—			(14	)		(6	)		—			2		(4	)
Machinery and equipment		—		—		—		—			—			—			—			—			—			—		0
Total commercial lines		53		5		58		(24	)		(3	)		0			(27	)		29			(3	)		4		31
Personal auto		—		—		0		—			—			—			0			—			—			—		0
Homeowners		12		—		12		(10	)		(3	)		—			(12	)		2			(3	)		—		(1	)
Other personal		1		—		1		—			—			—			0			1			—			—		1
Total personal lines		13		0		13		(10	)		(3	)		0			(12	)		3			(3	)		0		0
Total property casualty group	$	66	$	6	$	71	$	(34	)	$	(6	)	$	(0	)	$	(40	)	$	32		$	(6	)	$	4	$	32
Net loss and loss expense incurred at June 30, 2009
Commercial casualty	$	106	$	55	$	161	$	48		$	(14	)	$	5		$	39		$	154		$	(14	)	$	60	$	201
Commercial property		147		22		169		5			14			1			21			152			14			23		189
Commercial auto		109		19		128		(10	)		3			—			(7	)		99			3			19		120
Workers’ compensation		117		20		137		—			67			9			76			117			67			28		212
Specialty packages		47		8		55		4			17			2			21			50			17			10		76
Surety and executive risk		14		3		17		6			2			(1	)		7			21			2			2		24
Machinery and equipment		6		1		6		1			—			—			0			6			—			1		8
Total commercial lines		546		127		673		53			89			16			157			599			88			142		830
Personal auto		101		14		116		(6	)		1			—			(5	)		95			1			14		111
Homeowners		142		18		160		14			20			2			37			156			20			20		196
Other personal		24		3		27		(7	)		(1	)		(1	)		(10	)		17			(1	)		2		18
Total personal lines		267		35		303		1			21			1			21			268			21			36		325
Total property casualty group	$	813	$	162	$	976	$	54		$	109		$	17		$	178		$	867		$	109		$	178	$	1,155

* Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.

17

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data — All Lines

	Three months ended																				Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Premiums
Agency renewal written premiums			$	666		$	695		$	669		$	687		$	738		$	733		$	1,361		$	1,472			$	2,159			$	2,828
Agency new business written premiums				107			97			100			92			100			76			204			175				267				368
Ceded written premiums				(40	)		(39	)		(41	)		(49	)		(37	)		(38	)		(79	)		(75	)			(124	)			(165	)
Other written premiums				2			2			2			4			1			2			5			3				7				9
Written premium adjustment — statutory				(12	)		23			(13	)		(7	)		(12	)		3			11			(9	)			(17	)			(30	)
Reported written premiums — statutory*			$	723		$	778		$	717		$	727		$	790		$	776		$	1,501		$	1,566			$	2,292			$	3,010
Unearned premium change				10			(46	)		30			24			(29	)		(25	)		(36	)		(54	)			(29	)			—
Earned premiums			$	733		$	732		$	747		$	751		$	761		$	751		$	1,465		$	1,512			$	2,263			$	3,010
Year over year change %
Agency renewal written premiums				(9.8	)%		(5.2	)%		(5.1	)%		(6.1	)%		(3.0	)%		(3.7	)%		(7.5	)%		(3.4	)%			(4.3	)%			(4.5	)%
Agency new business written premiums				6.9			28.9			23.6			12.1			22.8			(6.3	)		16.4			8.3				9.6				13.1
Ceded written premiums				7.1			4.6			0.3			20.3			(4.6	)		(1.1	)		5.8			(2.9	)			5.1				3.8
Other written premiums				81.6			32.5			(50.6	)		(39.1	)		(74.6	)		(71.8	)		53.5			(73.1	)			(61.6	)			(59.3	)
Written premium adjustment — statutory				(0.3	)		661.2			(48.0	)		(81.6	)		(900.0	)		(91.5	)		(220.8	)		(124.3	)			161.5				(4.8	)
Reported written premiums — statutory*				(8.5	)		0.3			(1.0	)		(1.3	)		(2.5	)		(8.3	)		(4.2	)		(5.4	)			(4.2	)			(3.4	)
Statutory combined ratio
Statutory combined ratio				116.6	%		105.1	%		100.2	%		102.8	%		101.5	%		97.2	%		110.8	%		99.4	%			100.5	%			100.4	%
Contribution from catastrophe losses				16.1			7.2			(2.1	)		8.4			14.9			5.7			11.6			10.3				9.7				6.8
Statutory combined ratio excluding catastrophe losses				100.5	%		97.9	%		102.3	%		94.4	%		86.6	%		91.5	%		99.2	%		89.1	%			90.8	%			93.6	%
Commission expense ratio				18.2	%		17.7	%		20.8	%		17.7	%		17.4	%		17.7	%		17.9	%		17.5	%			17.6	%			18.4	%
Other expense ratio				13.8			13.2			15.9			15.4			10.7			12.9			13.5			11.8				12.8				13.7
Statutory expense ratio				32.0	%		30.9	%		36.7	%		33.1	%		28.1	%		30.6	%		31.4	%		29.3	%			30.4	%			32.1	%
GAAP combined ratio
GAAP combined ratio				116.6	%		107.5	%		98.9	%		101.2	%		103.5	%		98.6	%		112.1	%		101.1	%			101.1	%			100.6	%
Contribution from catastrophe losses				16.1			7.2			(2.1	)		8.4			14.9			5.7			11.6			10.3				9.7				6.8
GAAP combined ratio excluding catastrophe losses				100.5	%		100.3	%		101.0	%		92.8	%		88.6	%		92.9	%		100.5	%		90.8	%			91.4	%			93.8	%

*	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.
*	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.

2009 Second-Quarter Supplement

18

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data — Commercial Lines

	Three months ended																				Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Premiums
Agency renewal written premiums			$	488		$	557		$	514		$	502		$	552		$	588		$	1,045		$	1,140			$	1,642			$	2,156
Agency new business written premiums				79			76			83			77			87			66			155			153				229				312
Ceded written premiums				(32	)		(31	)		(23	)		(46	)		(31	)		(32	)		(64	)		(63	)			(109	)			(131	)
Other written premiums				1			1			(9	)		13			1			—			3			1				14				4
Written premium adjustment — statutory				(12	)		23			(13	)		(8	)		(12	)		3			11			(9	)			(17	)			(30	)
Reported written premiums — statutory*			$	524		$	626		$	552		$	538		$	597		$	625		$	1,149		$	1,222			$	1,759			$	2,311
Unearned premium change				32			(69	)		21			44			(11	)		(51	)		(37	)		(61	)			(16	)			5
Earned premiums			$	556		$	557		$	573		$	582		$	586		$	574		$	1,112		$	1,161			$	1,743			$	2,316
Year over year change %
Agency renewal written premiums				(11.6	)%		(5.2	)%		(5.9	)%		(7.7	)%		(2.9	)%		(4.0	)%		(8.3	)%		(3.5	)%			(4.8	)%			(5.1	)%
Agency new business written premiums				(8.9	)		14.9			16.4			6.0			21.2			(8.3	)		1.4			6.4				6.3				8.8
Ceded written premiums				3.2			0.2			(33.0	)		43.6			(1.6	)		2.8			1.7			0.6				15.1				2.4
Other written premiums				49.2		nm				(391.7	)		250.5			(73.4	)		(99.4	)		227.4			(89.2	)			25.0				(66.5	)
Written premium adjustment — statutory				4.2			666.7			(45.8	)		(81.6	)		(900.0	)		(91.5	)		(216.7	)		(124.3	)			161.7				(1.6	)
Reported written premiums — statutory*				(12.2	)		0.1			(1.9	)		(1.2	)		(2.7	)		(9.8	)		(5.9	)		(6.5	)			(4.9	)			(4.2	)
Statutory combined ratio
Statutory combined ratio				112.0	%		99.0	%		99.0	%		97.3	%		97.5	%		93.3	%		105.4	%		95.5	%			95.9	%			96.6	%
Contribution from catastrophe losses				10.2			2.5			(1.5	)		4.0			11.3			3.9			6.4			7.7				6.4				4.5
Statutory combined ratio excluding catastrophe losses				101.8	%		96.5	%		100.5	%		93.3	%		86.2	%		89.4	%		99.0	%		87.8	%			89.5	%			92.1	%
Commission expense ratio				18.1	%		16.4	%		20.8	%		18.1	%		16.9	%		16.5	%		17.2	%		16.7	%			17.1	%			18.0	%
Other expense ratio				14.4			12.8			15.7			15.4			10.9			13.2			13.5			12.1				13.1				13.7
Statutory expense ratio				32.5	%		29.2	%		36.5	%		33.5	%		27.8	%		29.7	%		30.7	%		28.8	%			30.2	%			31.7	%
GAAP combined ratio
GAAP combined ratio				110.9	%		102.2	%		98.1	%		94.9	%		99.9	%		95.0	%		106.6	%		97.4	%			96.6	%			97.0	%
Contribution from catastrophe losses				10.2			2.5			(1.5	)		4.0			11.3			3.9			6.4			7.7				6.4				4.5
GAAP combined ratio excluding catastrophe losses				100.7	%		99.7	%		99.6	%		90.9	%		88.6	%		91.1	%		100.2	%		89.7	%			90.2	%			92.5	%

*	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.

2009 Second-Quarter Supplement

19

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data — Personal Lines

	Three months ended																				Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Premiums
Agency renewal written premiums			$	176		$	137		$	156		$	185		$	186		$	146		$	313		$	332			$	517			$	672
Agency new business written premiums				19			14			11			11			10			8			34			19				30				42
Ceded written premiums				(7	)		(7	)		(8	)		(13	)		(6	)		(6	)		(15	)		(12	)			(26	)			(33	)
Other written premiums				1			1			—			1			1			2			2			2				4				4
Written premium adjustment — statutory				—			—			—			—			—			—			—			—				—				—
Reported written premiums — statutory*			$	190		$	145		$	158		$	184		$	191		$	150		$	334		$	341			$	525			$	685
Unearned premium change				(18	)		26			13			(17	)		(17	)		27			9			10				(7	)			4
Earned premiums			$	172		$	171		$	171		$	167		$	174		$	177		$	343		$	351			$	518			$	689
Year over year change %
Agency renewal written premiums				(5.3	)%		(6.0	)%		(2.3	)%		(1.6	)%		(3.3	)%		(2.8	)%		(5.6	)%		(3.1	)%			(2.5	)%			(2.5	)%
Agency new business written premiums				84.7			67.2			17.9			11.8			7.7			(0.5	)		76.8			3.9				6.7				9.5
Ceded written premiums				20.2			23.1			7.0			61.4			(17.3	)		(17.2	)		21.6			(17.3	)			11.0				10.1
Other written premiums				122.6			(50.0	)		(64.9	)		(37.3	)		(76.2	)		(0.4	)		(8.9	)		(43.3	)			(41.3	)			(45.4	)
Written premium adjustment — statutory				0.0			0.0			(100.0	)		(100.0	)		0.0			(100.0	)		0.0			(100.0	)			(100.0	)			(100.0	)
Reported written premiums — statutory*				(0.6	)		(3.5	)		(1.4	)		(4.0	)		(3.0	)		(2.0	)		(1.9	)		(2.6	)			(3.1	)			(2.7	)
Statutory combined ratio
Statutory combined ratio				130.5	%		123.9	%		102.1	%		120.6	%		114.3	%		110.8	%		126.8	%		112.2	%			114.9	%			111.6	%
Contribution from catastrophe losses				35.4			22.6			(4.1	)		23.8			27.0			11.6			29.0			19.3				20.7				14.5
Statutory combined ratio excluding catastrophe losses				95.1	%		101.3	%		106.2	%		96.8	%		87.3	%		99.2	%		97.8	%		92.9	%			94.2	%			97.1	%
Commission expense ratio				18.0	%		22.5	%		21.2	%		16.4	%		18.6	%		22.3	%		20.0	%		20.2	%			18.9	%			19.5	%
Other expense ratio				11.7			12.9			15.0			14.0			10.3			11.8			12.2			11.0				12.0				12.7
Statutory expense ratio				29.7	%		35.4	%		36.2	%		30.4	%		28.9	%		34.1	%		32.2	%		31.2	%			30.9	%			32.2	%
GAAP combined ratio
GAAP combined ratio				133.2	%		120.7	%		100.0	%		122.5	%		115.3	%		110.1	%		126.9	%		112.7	%			115.9	%			111.9	%
Contribution from catastrophe losses				35.4			22.6			(4.1	)		23.8			27.0			11.6			29.0			19.3				20.7				14.5
GAAP combined ratio excluding catastrophe losses				97.8	%		98.1	%		104.1	%		98.7	%		88.3	%		98.5	%		97.9	%		93.4	%			95.2	%			97.4	%

*	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.

2009 Second-Quarter Supplement

20

The Cincinnati Life Insurance Company

Statutory Statements of Income

	For the Three Months Ended June 30,												For the Six Months Ended June 30,
(Dollars in millions)	2009			2008			Change			% Change			2009			2008			Change			% Change
Net premiums written	$	71		$	45		$	26			58.8		$	119		$	87		$	32			37.7
Net investment income		31			29			2			5.6			61			58			3			4.1
Amortization of interest maintenance reserve		(2	)		—			(2	)	nm				(3	)		(1	)		(2	)		(518.4	)
Commissions and expense allowances on reinsurance ceded		2			2			—			(7.2	)		4			4			—			(8.3	)
Income from fees associated with Separate Accounts		—			1			(1	)	nm				—			1			(1	)	nm
Total revenues	$	102		$	77		$	25			33.5		$	180		$	150		$	30			20.5
Death benefits and matured endowments	$	12		$	10		$	2			14.0		$	29		$	21		$	8			36.5
Annuity benefits		7			6			1			16.0			17			13			4			24.3
Disability benefits and benefits under accident and health contracts		1			1			—			(3.3	)		1			1			—			(5.1	)
Surrender benefits and group conversions		6			6			—			(3.6	)		11			12			(1	)		(7.2	)
Interest and adjustments on deposit-type contract funds		3			3			—			(3.8	)		5			6			(1	)		(4.3	)
Increase in aggregate reserves for life and accident and health contracts		58			30			28			92.8			85			52			33			63.1
Payments on supplementary contracts with life contingencies		—			—			—		nm				—			—			—		nm
Total benefit expenses	$	86		$	56		$	30			53.3		$	148		$	106		$	42			40.5
Commissions	$	10		$	8		$	2			20.8		$	18		$	16		$	2			11.4
General insurance expenses and taxes		9			10			(1	)		(6.9	)		18			19			(1	)		(6.4	)
Increase in loading on deferred and uncollected premiums		(3	)		(2	)		(1	)		(52.6	)		(3	)		(2	)		(1	)		(60.1	)
Net transfers to or (from) Separate Accounts		—			—			—		nm				(2	)		—			(2	)	nm
Other deductions		—			—			—		nm				—			—			—		nm
Total operating expenses	$	16		$	16		$	—			0.7		$	31		$	34		$	(3	)		(7.2	)
Federal and foreign income taxes incurred		(1	)		3			(4	)	nm				(4	)		11			(15	)	nm
Net gain from operations before realized capital gains or (losses)	$	1		$	2		$	(1	)		27.5		$	5		$	(1	)	$	6		nm
Net realized gains or (losses) net of capital gains tax		—			(8	)		8		nm				(6	)		(14	)		8			56.0
Net income (loss) (statutory)	$	1		$	(7	)	$	8		nm			$	(1	)	$	(15	)	$	14			90.8

*	Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.
*	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.

2009 Second-Quarter Supplement

21