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: October 29, 2009
(Date of earliest event reported)

CINCINNATI FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

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

6200 S. Gilmore Road, Fairfield, Ohio
(Address of principal executive offices) 45014-5141
(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 October 29, 2009, Cincinnati Financial Corporation issued the attached news release titled “Cincinnati Financial Reports Third-Quarter 2009 Results,” furnished as Exhibit 99.1 hereto and incorporated herein by reference. On October 29, 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 October 29, 2009, “Cincinnati Financial Reports Third-Quarter 2009 Results”

Exhibit 99.2 – Supplemental Financial Data dated October 29, 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: October 29, 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 Third-Quarter 2009 Results

Cincinnati, October 29, 2009 — Cincinnati Financial Corporation (Nasdaq: CINF) today reported:

• Net income of $171 million, or $1.05 per share, in the third quarter of 2009, compared with $247 million, or $1.50 per share, in the 2008 third quarter. Net realized investment gains contributed $75 million, or 46 cents per share, compared with $173 million, or $1.05 per share.

• Operating income* of $96 million, or 59 cents per share, in the 2009 third quarter, compared with operating income of $74 million, or 45 cents per share.

• Net income and operating income for the third-quarter of 2009 reflected a property casualty insurance underwriting profit, contributing 14 cents per share, compared with a third-quarter 2008 underwriting loss that decreased income by 4 cents per share. The property casualty contribution rose primarily on lower weather-related catastrophe losses.

• Book value per share of $28.44 at September 30, 2009, up 11.6 percent during the quarter.

• Value creation ratio reached 13.1 percent for the third quarter and 15.0 percent for the first nine months of 2009.

Financial Highlights

	Three months ended September 30,							Nine months ended September 30,
(Dollars in millions except share data)	2009		2008		change %			2009		2008		change %
Revenue Highlights
Earned premiums	$	766	$	781		(1.9	)	$	2,301	$	2,355		(2.3	)
Investment income		127		130		(2.4	)		370		412		(10.3	)
Total revenues		1,007		1,186		(15.1	)		2,770		2,806		(1.3	)
Income Statement Data
Net income	$	171	$	247		(31.0	)	$	187	$	268		(30.1	)
Net realized investment gains and losses		75		173		(57.2	)		58		16		263.8
Operating income*	$	96	$	74		30.7		$	129	$	252		(48.9	)
Per Share Data (diluted)
Net income	$	1.05	$	1.50		(30.0	)	$	1.15	$	1.64		(29.9	)
Net realized investment gains and losses		0.46		1.05		(56.2	)		0.36		0.10		260.0
Operating income*	$	0.59	$	0.45		31.1		$	0.79	$	1.54		(48.7	)
Book value								$	28.44	$	28.87		(1.5	)
Cash dividend declared		0.395		0.39		1.3			1.175		1.17		0.4
Diluted weighted average shares outstanding		162,901,396		164,242,185		(0.8	)		162,794,767		163,834,163		(0.6	)

Insurance Operations Highlights

• 95.1 percent third-quarter 2009 property casualty combined ratio improved from 101.3 percent in the third quarter of 2008.

• Property casualty net written premiums grew $3 million or 0.5 percent, with new business from growth initiatives and lower ceded premiums for reinsurance offsetting the negative premium effects of the slow economy and a disciplined underwriting response to lower market pricing.

• $14 million increase in property casualty new business written by agencies in the third quarter of 2009, with $9 million from standard market geographic expansion initiatives and $4 million from surplus lines.

• 4 cents per share contribution from life insurance operations to third-quarter operating income, up from 3 cents per share.

Balance Sheet and Investment Highlights

• $28.44 book value, up 10.4 percent from $25.75 at December 31, 2008. Property casualty statutory surplus rose 3.3 percent to $3.472 billion.

• Invested assets fair value increased 7.4 percent and 17.3 percent during the third quarter and first nine months of 2009.

• Investment income for the third quarter declined 2.4 percent and is approaching a growth pace following portfolio changes during 2008 and early 2009 to execute a capital preservation diversification strategy.

• Strong capital position includes financial flexibility from parent company cash and marketable securities of $1.061 billion.

*	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 7).

Return to Profitability and Positive Direction

Kenneth W. Stecher, president and chief executive officer, commented, “While the economy and price competition continue to challenge our insurance business, the metrics we use to measure our success moved in a distinctly positive direction in the third quarter. Operating income of $96 million or 59 cents per share surpassed the amounts reported since the first quarter of 2008. Pre-tax investment income nearly reached the level of the 2008 third quarter, on track to resume a growth trend by year-end 2009.

“Our property casualty insurance operations benefitted from atypically low catastrophe losses, strong reserves and some stabilization of pricing. We achieved $36 million of pre-tax underwriting profit and a combined ratio of 95.1 percent for the third quarter, our best result since the fourth quarter of 2007. As expected, our workers’ compensation and homeowner lines of business continued to underperform. For both of these lines, we are using predictive modeling techniques to improve the accuracy of our pricing for each account and to target best-of-class accounts. Early results show positive impacts on pricing and verify the trend to higher quality accounts, which should, over time, return these lines to profitability.

“We are satisfied with third-quarter results relative to other recent quarters, recognizing that we still have work to do. As we navigate through a difficult period for our company, our industry and economy, we continue to sharply focus on initiatives that have just begun to bear fruit and have strong potential to drive future profitable growth,” Stecher said. “During the third quarter, we saw clear indications that these efforts are increasing current opportunities and opening new ones. Among those indications was a healthy amount of new business that directly resulted from our initiatives, helping offset lower premiums resulting from lower policyholder sales and payrolls used to calculate premiums. We continue to decline underpriced business, giving up short-term revenue to protect long-term profitability.”

Current Progress and Potential for Profitable Growth

Stecher continued, “We are making good progress in expanding our product lines and pursuing geographic diversification. Our new surplus lines subsidiary has been well received by our independent agent representatives, and it is contributing steadily to new business. Our entry into additional states is going well, with business building at a good pace in Texas, New Mexico and eastern Washington. In September, we appointed our first Wyoming agency, expanding the marketing territory that includes northern Colorado. We’re receiving rollover books of personal lines business in areas where we recently expanded that product line.

“Our technology initiatives also are proceeding on time and on budget. In October, we put our new policy administration system for commercial packages and auto policies into production in five states accounting for approximately 40 percent of our commercial lines premium. The system makes it easier for agents to serve the insurance needs of the businesses in their communities, offering efficiencies such as direct billing by the company and the ability to quote and issue policies in real time directly from their agency systems. We expect to have this system in six more states before year-end, with 19 additional states scheduled for 2010.

“Our expansion and technology initiatives support our long-term strategies. First, we are working to improve profitability by introducing more efficient systems and enhancing our underwriting capabilities. Second, we are driving premium growth by making it more attractive for agents to do business with us and by moving toward a larger footprint that also reduces volatility of our results associated with weather-related catastrophes. We also continue to make progress with the third part of our long-term strategy, to preserve capital. Our investment portfolio is actively managed, with an eye toward the appropriate balance between current income and the potential for capital appreciation that benefits shareholders.”

Shareholder Rewards

Stecher concluded, “Significantly exceeding year-end 2008 levels, shareholders’ equity rose to $4.626 billion and book value per share rose to $28.44 at the end of the third quarter. The increase helped take our value creation ratio for the year-to-date period to the 15 percent level earlier than anticipated. Our target for this measure is a 12 percent to 15 percent average for the five-year period of 2010 through 2014. The value creation ratio is the sum of our rate of growth in book value per share plus the ratio of dividends declared per share to beginning book value. It captures the contribution of our insurance operations, the success of our investment strategy and the importance we place on paying cash dividends to shareholders.

“During the third quarter, our board of directors increased the indicated annual dividend for a 49^th consecutive year, raising the quarterly dividend paid October 15 by a half cent to 39.5 cents. This gesture signaled their confidence that we are moving steadily in the right direction, as verified by underwriting profit in the third quarter. We are eager to further pursue the new opportunities we have just begun to tap.”

2

Consolidated Property Casualty Insurance Operations

(Dollars in millions; percent change given for dollar amounts	Three months ended September 30,									Nine months ended September 30,
and point change given for ratios)	2009			2008			change %			2009			2008			change %
Earned premiums	$	733		$	751			(2.4	)	$	2,198		$	2,262			(2.9	)
Loss and loss expenses before catastrophe losses		453			460			(1.5	)		1,446			1,362			6.1
Loss and loss expenses from catastrophe losses		6			63			(89.7	)		177			219			(19.2	)
Total loss and loss expenses		459			523			(12.2	)		1,623			1,581			2.6
Underwriting expenses		238			237			0.2			716			707			1.4
Underwriting profit (loss)	$	36		$	(9	)		nm		$	(141	)	$	(26	)		(449.3	)
Other premium metrics:
Agency renewal written premiums	$	669		$	687			(2.7	)	$	2,030		$	2,159			(6.0	)
Agency new business written premiums		107			93			15.4			311			268			16.0
Net written premiums		730			727			0.5			2,231			2,292			(2.7	)
Ratios as a percent of earned premiums:							Points									Points
Loss and loss expenses		62.7	%		69.7	%		(7.0	)		73.8	%		69.9	%		3.9
Underwriting expenses		32.4			31.6			0.8			32.6			31.2			1.4
Combined ratio		95.1	%		101.3	%		(6.2	)		106.4	%		101.1	%		5.3
Other metrics within combined ratio:
Contribution from catastrophe losses		0.9			8.4			(7.5	)		8.1			9.7			(1.6	)
Contribution from prior period reserve development		(12.4	)		(13.6	)		1.2			(5.2	)		(8.9	)		3.7

• $3 million or 0.5 percent increase in third-quarter property casualty net written premiums as the effects of insured exposure decreases, soft pricing and disciplined renewal underwriting were offset by growth in new business and lower ceded premiums on reinsurance, including $8 million less for reinstatement premiums on catastrophe reinsurance.

• $14 million increase in third-quarter 2009 new business written by agencies includes a $4 million increase from surplus lines operations that began in 2008 and a $10 million increase from personal lines operations.

• 1,174 agency relationships with 1,455 reporting locations marketing standard market property casualty insurance products at September 30, 2009, up from 1,133 agency relationships with 1,387 reporting locations at year-end 2008.

• Third-quarter 2009 GAAP combined ratio decreased primarily due to lower catastrophe losses.

• Underwriting results benefitted from the impact of favorable prior accident year reserve development of $91 million for the third quarter of 2009 and $102 million for the third quarter of 2008.

(In millions, net of reinsurance)			Three months ended September 30,									Nine months ended September 30,
			Commercial			Personal						Commercial			Personal
Dates	Cause of loss	Region	lines			lines			Total			lines			lines		Total
2009
First quarter catastrophes				(1	)		1			—			20			47		67
Second quarter catastrophes				(10	)		1			(9	)		42			45		87
Sep. 18-22	Flood, hail, wind	South		1			4			5			1			4		5
All other 2009 catastrophes				6			6			12			11			13		24
Development on 2008 and prior catastrophes				(3	)		1			(2	)		(10	)		4		(6	)
Calendar year incurred total			$	(7	)	$	13		$	6		$	64		$	113	$	177
2008
First quarter catastrophes				(1	)		—			(1	)		21			21		42
Second quarter catastrophes				(2	)		(10	)		(12	)		66			34		100
Jul. 19	Wind, hail, flood	Midwest		3			3			6			3			3		6
Jul. 26	Wind, hail, flood	Midwest		1			8			9			1			8		9
Sep. 12-14	Hurricane Ike	South, Midwest		20			37			57			20			37		57
All other 2008 catastrophes				1			—			1			3			3		6
Development on 2007 and prior catastrophes				1			2			3			(2	)		1		(1	)
Calendar year incurred total			$	23		$	40		$	63		$	112		$	107	$	219

3

Insurance Segments Highlights

Commercial Lines Insurance Operations

(Dollars in millions; percent change given for dollar amounts	Three months ended September 30,									Nine months ended September 30,
and point change given for ratios)	2009			2008			change %			2009			2008			change %
Earned premiums	$	555		$	582			(4.7	)	$	1,667		$	1,743			(4.4	)
Loss and loss expenses before catastrophe losses		336			348			(3.6	)		1,095			1,034			5.9
Loss and loss expenses from catastrophe losses		(7	)		23		nm				64			112			(42.8	)
Total loss and loss expenses		329			371			(11.5	)		1,159			1,146			1.2
Underwriting expenses		184			181			1.6			539			538			0.2
Underwriting profit (loss)	$	42		$	30			41.5		$	(31	)	$	59			(152.1	)
Other premium metrics:
Agency renewal written premiums	$	489		$	502			(2.5	)	$	1,535		$	1,642			(6.5	)
Agency new business written premiums		76			77			(0.4	)		231			229			0.8
Net written premiums		528			538			(1.8	)		1,678			1,759			(4.7	)
							Points									Points
Ratios as a percent of earned premiums:
Loss and loss expenses		59.3	%		63.8	%		(4.5	)		69.6	%		65.7	%		3.9
Underwriting expenses		33.1			31.1			2.0			32.3			30.9			1.4
Combined ratio		92.4	%		94.9	%		(2.5	)		101.9	%		96.6	%		5.3
Other metrics within combined ratio:
Contribution from catastrophe losses		(1.2	)		4.0			(5.2	)		3.8			6.4			(2.6	)
Contribution from prior period reserve development		(13.4	)		(15.0	)		1.6			(5.2	)		(10.1	)		4.9

• $10 million or 1.8 percent decrease in third-quarter commercial lines net written premiums. Lower renewal premiums reflected modest pricing declines and lower insured exposure levels such as business sales or payroll volume, due to the weak economy. Lower new business premiums reflected decisions to decline business considered underpriced, partially offset by growth initiatives including $4 million from Texas, a market we entered in December 2008.

• 2.5 percentage-point improvement in third-quarter combined ratio due primarily to lower weather-related catastrophe losses.

• Favorable prior accident year reserve development benefitted third-quarter underwriting results by $74 million for 2009 compared with $88 million for 2008, with umbrella liability coverages driving the majority of the 2009 benefit.

Personal Lines Insurance Operations

(Dollars in millions; percent change given for dollar amounts	Three months ended September 30,									Nine months ended September 30,
and point change given for ratios)	2009			2008			change %			2009			2008			change %
Earned premiums	$	170		$	167			1.8		$	513		$	518			(0.9	)
Loss and loss expenses before catastrophe losses		112			111			0.3			337			328			2.7
Loss and loss expenses from catastrophe losses		13			40			(66.2	)		113			107			5.3
Total loss and loss expenses		125			151			(17.2	)		450			435			3.3
Underwriting expenses		49			54			(8.8	)		159			165			(3.2	)
Underwriting loss	$	(4	)	$	(38	)		89.8		$	(96	)	$	(82	)		(16.6	)
Other premium metrics:
Agency renewal direct written premiums	$	177		$	185			(4.7	)	$	490		$	517			(5.3	)
Agency new business direct written premiums		21			11			90.9			55			30			82.0
Net written premiums		190			184			3.2			524			525			(0.1	)
							Points									Points
Ratios as a percent of earned premiums:
Loss and loss expenses		73.3	%		90.1	%		(16.8	)		87.5	%		84.0	%		3.5
Underwriting expenses		29.0			32.4			(3.4	)		31.2			31.9			(0.7	)
Combined ratio		102.3	%		122.5	%		(20.2	)		118.7	%		115.9	%		2.8
Other metrics within combined ratio:
Contribution from catastrophe losses		7.9			23.8			(15.9	)		22.0			20.7			1.3
Contribution from prior period reserve development		(10.1	)		(9.1	)		(1.0	)		(5.0	)		(5.2	)		0.2

• $6 million or 3.2 percent increase in third-quarter personal lines net written premiums, including $6 million lower catastrophe reinsurance reinstatement premiums. Lower renewal premiums were offset by higher new business premiums.

• $10 million increase in third-quarter personal lines new business including $4 million from seven states where we began in 2008 to market personal lines or significantly expanded our personal lines product offerings and automation capabilities.

• 20.2 percentage-point decrease in the combined ratio largely due to a 15.9 percentage-point decrease in catastrophe losses.

• Favorable prior accident year reserve development benefitted third-quarter underwriting results by $17 million for 2009 compared with $15 million for 2008, with umbrella liability coverages driving the majority of the 2009 benefit.

4

Life Insurance Operations

	Three months ended September 30,							Nine months ended September 30,
(In millions)	2009		2008		change %			2009		2008		change %
Written premiums	$	110	$	44		150.1		$	233	$	135		73.2
Earned premiums	$	33	$	30		10.7		$	103	$	93		11.0
Investment income, net of expenses		31		30		3.4			90		89		2.0
Other income		—		—		nm			1		1		(56.3	)
Total revenues, excluding realized investment gains and losses		64		60		7.7			194		183		6.1
Contract holders benefits		40		41		(1.0	)		118		115		3.1
Underwriting expenses		9		11		(16.7	)		34		33		4.6
Total benefits and expenses		49		52		(4.4	)		152		148		3.4
Net income before income tax and realized investment gains and losses		15		8		90.1			42		35		17.6
Income tax		8		3		175.8			15		12		23.5
Net income before realized investment gains and losses	$	7	$	5		43.2		$	27	$	23		14.6

• $66 million three-month and $98 million nine-month growth in 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.

• Net written premiums from life insurance products grew 10.1 percent during the third quarter of 2009 and 8.5 percent to $117 million for the first nine months of 2009.

• 12.0 percent rise to $65 million in term life insurance written premiums for the first nine months of 2009, reflecting marketing advantages of competitive, up-to-date products, close personal attention and policies backed by financial strength and stability.

• Growth in earned premiums drove improved profitability for the third quarter and first nine months of 2009 as life insurance operations continue to provide a steady contribution to overall earnings. Reduced underwriting expenses also contributed to higher profitability for the third quarter of 2009.

• 4.6 percent rise in face amount of life policies in force to $68.895 billion at September 30, 2009, from $65.888 billion at year-end 2008.

5

Investment and Balance Sheet Highlights

Investment Operations

	Three months ended September 30,									Nine months ended September 30,
(In millions)	2009			2008			change %			2009			2008			change %
Investment income:
Interest	$	104		$	83			26.0		$	296		$	238			24.5
Dividends		24			46			(48.0	)		74			169			(56.2	)
Other		1			3			(70.4	)		6			10			(47.3	)
Investment expenses		(2	)		(2	)		(18.0	)		(6	)		(5	)		(11.3	)
Total investment income, net of expenses		127			130			(2.4	)		370			412			(10.3	)
Investment interest credited to contract holders		(17	)		(16	)		(10.1	)		(50	)		(47	)		(7.6	)
Realized investment gains and losses summary:
Realized investment gains and losses, net		106			401			(73.6	)		180			441			(59.1	)
Change in fair value of securities with embedded derivatives		15			(8	)		296.0			23			(13	)		268.0
Other-than-temporary impairment charges		(11	)		(121	)		90.8			(113	)		(400	)		71.7
Total realized investment gains and losses, net		110			272			(59.6	)		90			28			218.1
Investment operations income	$	220		$	386			(43.2	)	$	410		$	393			4.0

• 2.4 percent decline in third-quarter 2009 net investment income, as higher interest income only partially offset dividend reductions by equity security holdings. Those dividend reductions occurred primarily during late 2008 and early 2009.

• $572 million third-quarter 2009 increase in pre-tax unrealized investment gains, including $407 million for the fixed maturities portfolio.

• Pre-tax realized investment gain for the first nine months of 2009 included $205 million in net gains from sales of equity securities as the company actively managed sector and issue diversification.

	At September 30,			At December 31,
(Dollars in millions except share data)	2009			2008
Balance sheet data
Invested assets	$	10,428		$	8,890
Total assets		14,226			13,369
Short-term debt		49			49
Long-term debt		790			791
Shareholders’ equity		4,626			4,182
Book value per share		28.44			25.75
Debt-to-capital ratio		15.3	%		16.7	%

	Nine months ended September 30,
	2009			2008
Performance measures
Value creation ratio		15.0	%		(15.9	)%

• $10.876 billion in cash and invested assets at September 30, 2009, up from $9.899 billion at December 31, 2008. Cash and equivalents of $448 million at September 30, 2009, compared with $1.009 billion at December 31, 2008.

• $7.668 billion bond portfolio at September 30, 2009, with an average rating of A2/A and with a 7.6 percent rise in fair value during the third quarter of 2009.

• $2.669 billion equity portfolio was 25.6 percent of invested assets, including $697 million in pre-tax unrealized gains at September 30, 2009. Fair value of the equity portfolio rose 7.1 percent during the third quarter of 2009.

• $3.472 billion of statutory surplus for the property casualty insurance group at September 30, 2009, up from $3.360 billion at December 31, 2008. Ratio of net written premiums to property casualty statutory surplus for the 12 months ended September 30, 2009, of 0.85-to-1, further improved from 0.89-to-1 for the 12 months ended December 31, 2008.

• Value creation ratio for the first nine months of 2009 includes 4.6 percent from shareholder dividends and 10.4 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

6

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 or recession, 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.

***

7

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

	September 30,			December 31,
(Dollars in millions)	2009			2008
Assets
Investments	$	10,428		$	8,890
Cash and cash equivalents		448			1,009
Premiums receivable		1,046			1,059
Reinsurance receivable		707			759
Other assets		1,597			1,652
Total assets	$	14,226		$	13,369
Liabilities
Insurance reserves	$	5,893		$	5,637
Unearned premiums		1,557			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		1,360			1,215
Total liabilities		9,600			9,187
Shareholders’ Equity
Common stock and paid-in capital		1,471			1,462
Retained earnings		3,681			3,579
Accumulated other comprehensive income		675			347
Treasury stock		(1,201	)		(1,206	)
Total shareholders’ equity		4,626			4,182
Total liabilities and shareholders’ equity	$	14,226		$	13,369

	Three months ended September 30,				Nine months ended September 30,
(Dollars in millions except per share data)	2009		2008		2009		2008
Revenues
Earned premiums	$	766	$	781	$	2,301	$	2,355
Investment income, net of expenses		127		130		370		412
Realized investment gains and losses		110		272		90		28
Other income		4		3		9		11
Total revenues		1,007		1,186		2,770		2,806
Benefits and Expenses
Insurance losses and policyholder benefits		498		563		1,737		1,693
Underwriting, acquisition and insurance expenses		247		248		750		738
Other operating expenses		4		5		14		16
Interest expense		14		14		42		39
Total benefits and expenses		763		830		2,543		2,486
Income before Income Taxes		244		356		227		320
Provision for Income Taxes		73		109		40		52
Net Income	$	171	$	247	$	187	$	268
Per Common Share:
Net income—basic	$	1.05	$	1.51	$	1.15	$	1.64
Net income—diluted	$	1.05	$	1.50	$	1.15	$	1.64

8

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 to improve its understanding of trends in the underlying business and to 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.

9

Cincinnati Financial Corporation
Net Income Reconciliation

	Three months ended			Nine months ended
(In millions except per share data)	September 30, 2009			September 30, 2009
Net income	$	171		$	187
Net realized investment gains and losses		75			58
Operating income		96			129
Less catastrophe losses		(4	)		(115	)
Operating income before catastrophe losses	$	100		$	244
Diluted per share data:
Net income	$	1.05		$	1.15
Net realized investment gains and losses		0.46			0.36
Operating income		0.59			0.79
Less catastrophe losses		(0.03	)		(0.71	)
Operating income before catastrophe losses	$	0.62		$	1.50

Property Casualty Reconciliation

	Three months ended September 30, 2009
(Dollars in millions)	Consolidated*			Commercial			Personal
Premiums:
Adjusted written premiums — statutory	$	736			534			190
Written premium adjustment		(6	)		(6	)		0
Reported written premiums — statutory		730			528			190
Unearned premiums change		3			27			(20	)
Earned premiums	$	733		$	555		$	170
Statutory combined ratio:
Statutory combined ratio		96.9	%		94.9	%		102.8	%
Contribution from catastrophe losses		0.9			(1.2	)		7.9
Statutory combined ratio excluding catastrophe losses		96.0	%		96.1	%		94.9	%
Commission expense ratio		20.1	%		20.3	%		19.1	%
Other expense ratio		14.1			15.3			10.4
Statutory expense ratio		34.2	%		35.6	%		29.5	%
GAAP combined ratio:
GAAP combined ratio		95.1	%		92.4	%		102.3	%
Contribution from catastrophe losses		0.9			(1.2	)		7.9
Prior accident years before catastrophe losses		(12.1	)		(12.8	)		(10.7	)
GAAP combined ratio excluding catastrophe losses and prior years reserve development		106.3	%		106.4	%		105.1	%

	Nine months ended September 30, 2009
(Dollars in millions)	Consolidated*			Commercial			Personal
Premiums:
Adjusted written premiums — statutory	$	2,226		$	1,674		$	523
Written premium adjustment		5			4			1
Reported written premiums — statutory		2,231			1,678			524
Unearned premiums change		(33	)		(11	)		(11	)
Earned premiums	$	2,198		$	1,667		$	513
Statutory combined ratio:
Statutory combined ratio		106.2	%		101.8	%		118.7	%
Contribution from catastrophe losses		8.1			3.8			22.0
Statutory combined ratio excluding catastrophe losses		98.1	%		98.0	%		96.7	%
Commission expense ratio		18.7	%		18.2	%		19.6	%
Other expense ratio		13.7			14.1			11.6
Statutory expense ratio		32.4	%		32.3	%		31.2	%
GAAP combined ratio:
GAAP combined ratio		106.4	%		101.9	%		118.7	%
Contribution from catastrophe losses		8.1			3.8			22.0
Prior accident years before catastrophe losses		(4.9	)		(4.6	)		(5.8	)
GAAP combined ratio excluding catastrophe losses and prior years reserve development		103.2	%		102.7	%		102.5	%

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.

10

EX-99.2

Exhibit 99.2

Cincinnati Financial Corporation
Supplemental Financial Data
September 30, 2009
Third 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	BBB+			A3	BBB+
The Cincinnati Insurance Companies
Insurer Financial Strength
Property Casualty Group
Standard Market Subsidiaries:		A+		—		A1		A+
The Cincinnati Insurance Company		A+		A+		A1		A+
The Cincinnati Indemnity Company		A+		A+		A1		A+
The Cincinnati Casualty Company		A+		A+		A1		A+
Surplus Lines Subsidiary:
The Cincinnati Specialty Underwriters Insurance Company		A		—		—		—
The Cincinnati Life Insurance Company		A	AA-			—		A+

Ratings are as of October 28, 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
Third Quarter 2009

	Page
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3
Consolidated
Quick Reference	4
CFC and Subsidiaries Consolidation — Nine Months Ended September 30, 2009	5
CFC and Subsidiaries Consolidation — Three Months Ended September 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 Third-Quarter Supplement 3

Cincinnati Financial Corporation
Quick Reference — Third Quarter 2009
(all data shown is for the three months ended or as of September 30, 2009)

(Based on reported data — see Pages 14-16 for adjusted data)

				Year over year
	9/30/2009			change %
Revenues:
Commercial lines net written premiums	$	528			(1.8	)
Personal lines net written premiums		190			3.2
Surplus lines net written premiums		12			159.1
Property casualty net written premiums		730			0.5
Commercial lines net earned premiums		555			(4.7	)
Personal lines net earned premiums		170			1.8
Surplus lines net earned premiums		8			442.0
Property casualty net earned premiums		733			(2.4	)
Life and accident and health net earned premiums		33			10.7
Investment income		127			(2.4	)
Realized gains on investments		110			(59.7	)
Other income		4			30.2
Total revenues		1,007			(15.1	)
Income:
Operating income	$	96			30.7
Net realized investment gains and losses		75			(57.2	)
Net income		171			(31.0	)
Per share (diluted):
Operating income	$	0.59			31.9
Net realized investment gains and losses		0.46			(56.8	)
Net income		1.05			(30.0	)
Book value		28.44			(1.5	)
Weighted average shares — diluted		162,901,396			(0.8	)
Benefits and expenses:
Commercial lines loss and loss expenses	$	329			(11.5	)
Personal lines loss and loss expenses		125			(17.2	)
Surplus lines loss and loss expenses		5			nm
Life and accident and health losses and policy benefits		40			(1.0	)
Underwriting, acquisition and insurance expenses		247			(0.5	)
Operating expenses		4			22.4
Interest expenses		14			(1.9	)
Total expenses		763			(8.0	)
Net income before income taxes		244			(31.6	)
Total income tax benefit		73			(33.1	)
Ratios:
Commercial lines GAAP combined ratio		92.4	%
Personal lines GAAP combined ratio		102.3
Property casualty GAAP combined ratio		95.1
Commercial lines STAT combined ratio		94.9	%
Personal lines STAT combined ratio		102.8
Property casualty STAT combined ratio		96.9
Balance Sheet:
Fixed maturity investments	$	7,668
Equity securities		2,669
Short-term investments		12
Other invested assets		79
Total invested assets	$	10,428
Loss and loss expense reserves	$	4,195
Total debt		839
Shareholders’ equity		4,626

2009 Third-Quarter Supplement 4

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

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I		CINFIN			C-SUPR			ELIM			Total
Revenues:
Premiums earned:
Property Casualty	$	—		$	2,327		$	—		$	—	$	—		$	—		$	—		$	2,326
Life		—			—			134			—		—			—			—			134
Accident health		—			—			5			—		—			—			—			5
Premiums ceded		—			(129	)		(36	)		—		—			—			—			(165	)
Total earned premium		—			2,198			103			—		—			—			—			2,301
Investment income		31			248			90			—		—			—			1			370
Realized gain on investments		88			36			(33	)		—		(1	)		—			—			90
Other income		11			4			1			5		—			3			(14	)		9
Total revenues	$	130		$	2,486		$	161		$	5	$	(1	)	$	3		$	(13	)	$	2,770
Benefits & expenses:
Losses & policy benefits	$	—		$	1,683		$	147		$	—	$	—		$	—		$	(4	)	$	1,826
Reinsurance recoveries		—			(60	)		(29	)		—		—			—			—			(89	)
Underwriting, acquisition and insurance expenses		—			716			34			—		—			—			—			750
Other operating expenses		19			—			—			3		—			3			(11	)		14
Interest expense		39			—			—			2		—			—			—			42
Total expenses	$	58		$	2,339		$	152		$	5	$	—		$	3		$	(15	)	$	2,543
Income (loss) before income taxes	$	71		$	148		$	9		$	—	$	(1	)	$	—		$	1		$	227
Provision (benefit) for income taxes:
Current operating income	$	(15	)	$	(8	)	$	(3	)	$	—	$	—		$	—		$	—		$	(25	)
Capital gains/losses		31			13			(12	)		—		—			—			—			31
Deferred		4			12			17			—		—			—			—			34
Total provision for income taxes	$	19		$	17		$	3		$	—	$	—		$	—		$	—		$	40
Operating income (loss)	$	(5	)	$	107		$	27		$	—	$	—		$	—		$	1		$	128
Net income (loss) — current year	$	52		$	131		$	5		$	—	$	(1	)	$	—		$	1		$	187
Net income (loss) — prior year	$	(70	)	$	271		$	(20	)	$	1	$	—		$	(1	)	$	87		$	268

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

2009 Third-Quarter Supplement 5

Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Three Months Ended September 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		—			—			43			—		—		—		—			43
Accident health		—			—			2			—		—		—		—			2
Premiums ceded		—			(43	)		(12	)		—		—		—		—			(55	)
Total earned premium		—			733			33			—		—		—		—			766
Investment income		11			85			31			—		—		—		—			127
Realized gain on investments		21			90			(1	)		—		—		—		—			110
Other income		4			2			—			2		—		1		(5	)		4
Total revenues	$	36		$	910		$	63		$	2	$	—	$	1	$	(5	)	$	1,007
Benefits & expenses:
Losses & policy benefits	$	—		$	488		$	48		$	—	$	—	$	—	$	(1	)	$	535
Reinsurance recoveries		—			(29	)		(8	)		—		—		—		—			(37	)
Underwriting, acquisition and insurance expenses		—			238			10			—		—		—		—			247
Other operating expenses		6			—			—			1		—		1		(4	)		4
Interest expense		13			—			—			1		—		—		—			14
Total expenses	$	19		$	697		$	50		$	2	$	—	$	1	$	(5	)	$	763
Income before income taxes	$	17		$	213		$	13		$	—	$	—	$	—	$	—		$	244
Provision (benefit) for income taxes:
Current operating income	$	(4	)	$	25		$	2		$	—	$	—	$	—	$	—		$	23
Capital gains/losses		7			31			(3	)		—		—		—		—			36
Deferred		1			8			6			—		—		—		—			14
Total provision for income taxes	$	4		$	64		$	5		$	—	$	—	$	—	$	—		$	73
Operating income (loss)	$	(1	)	$	90		$	7		$	—	$	—	$	—	$	—		$	97
Net income — current year	$	13		$	149		$	8		$	—	$	—	$	—	$	—		$	171
Net income (loss) — prior year	$	(44	)	$	228		$	(24	)	$	—	$	—	$	—	$	87		$	247

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

2009 Third-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)		$	171		$	(19	)	$	35		$	161	$	247		$	63		$	(42	)	$	17		$	21		$	187		$	268			$	429
Net realized investment gains and losses			75			(14	)		(2	)		69		173			(6	)		(151	)		(15	)		(157	)		58			16				85
Operating income (loss)			96			(5	)		37			92		74			69			109			32			178			129			252				344
Less catastrophe losses			(4	)		(77	)		(34	)		10		(41	)		(74	)		(28	)		(111	)		(101	)		(115	)		(142	)			(132	)
Operating income before catastrophe losses		$	100		$	72		$	71		$	82	$	115		$	143		$	137		$	143		$	279		$	244		$	394			$	476
Diluted per share data
Net income (loss)		$	1.05		$	(0.12	)	$	0.22		$	0.99	$	1.50		$	0.38		$	(0.26	)	$	0.10		$	0.13		$	1.15		$	1.64			$	2.62
Net realized investment gains and losses			0.46			(0.09	)		(0.01	)		0.42		1.05			(0.04	)		(0.92	)		(0.10	)		(0.95	)		0.36			0.10				0.52
Operating income (loss)			0.59			(0.03	)		0.23			0.57		0.45			0.42			0.66			0.20			1.08			0.79			1.54				2.10
Less catastrophe losses			(0.03	)		(0.47	)		(0.21	)		0.06		(0.25	)		(0.45	)		(0.17	)		(0.68	)		(0.62	)		(0.71	)		(0.87	)			(0.81	)
Operating income before catastrophe losses		$	0.62		$	0.44		$	0.44		$	0.51	$	0.70		$	0.87		$	0.83		$	0.88		$	1.70		$	1.50		$	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 Third-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)		$	5,521	$	5,169		$	4,804		$	4,309		$	4,183		$	4,304		$	4,351
Equities (fair value)			2,477		2,247			1,986			2,432			3,210			3,537			4,226
Short-term investments (fair value)			10		11			13			19			162			—			51
Fixed maturities — pretax net unrealized gain (loss)			301		25			(36	)		(108	)		(132	)		(33	)		39
Equities — pretax net unrealized gain			594		487			347			627			1,012			1,227			1,831
Loss and loss expense reserves — STAT			3,656		3,674			3,555			3,494			3,507			3,534			3,448
Equity GAAP			4,283		3,795			3,512			3,667			3,947			4,011			4,498
Surplus — STAT			3,472		3,241			3,105			3,360			3,687			3,650			4,027
The Cincinnati Life Insurance Company
Fixed maturities (fair value)		$	1,868	$	1,694		$	1,534		$	1,467		$	1,483		$	1,551		$	1,534
Equities (fair value)			123		103			89			122			200			265			307
Short-term investments (fair value)			1		1			—			—			—			—			—
Fixed maturities — pretax net unrealized gain (loss)			67		(43	)		(94	)		(115	)		(79	)		(35	)		—
Equities — pretax net unrealized gain (loss)			11		(8	)		(27	)		(7	)		61			92			127
Equity — GAAP			653		563			454			471			530			617			661
Surplus — STAT			283		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 Third-Quarter Supplement 8

Consolidated Cincinnati Insurance Companies
Statutory Statements of Income

	For the Three Months Ended September 30,												For the Nine Months Ended September 30,
(Dollars in millions)	2009			2008			Change			% Change			2009			2008			Change			% Change
Underwriting income
Net premiums written	$	730		$	727		$	3			0.5		$	2,231		$	2,292		$	(62	)		(2.7	)
Unearned premiums increase		(3	)		(24	)		21			(88.0	)		33			30			3			10.6
Earned premiums	$	733		$	751		$	(18	)		(2.4	)	$	2,198		$	2,263		$	(65	)		(2.9	)
Losses incurred	$	368		$	456		$	(88	)		(19.4	)	$	1,350		$	1,353		$	(3	)		(0.2	)
Allocated loss expenses incurred		45			19			26			137.2			130			89			41			46.2
Unallocated loss expenses incurred		47			48			(1	)		(2.3	)		143			140			3			2.0
Other underwriting expenses incurred		246			238			9			3.7			709			697			12			1.7
Workers compensation dividend incurred		3			3			0			0.8			13			5			8			177.8
Total underwriting deductions	$	709		$	764		$	(55	)		(7.2	)	$	2,344		$	2,283		$	61			2.7
Net underwriting gain (loss)	$	24		$	(13	)	$	37			nm		$	(146	)	$	(20	)	$	(126	)		625.5
Investment income
Gross investment income earned	$	888		$	85		$	803			945.3		$	255		$	270		$	(15	)		(5.6	)
Net investment income earned		87			84			3			3.6			251			266			(15	)		(5.7	)
Net realized capital gains		54			171			(117	)		(68.2	)		15			77			(62	)		(80.2	)
Net investment gains (excl. subs)	$	141		$	255		$	(114	)		(44.6	)	$	266		$	343		$	(77	)		(22.4	)
Dividend from subsidiary		—			—			—			—			—			—			—			—
Net investment gains (net of tax)	$	141		$	255		$	(114	)		(44.6	)	$	266		$	343		$	(77	)		(22.4	)
Other income	$	2		$	1		$	1			145.4		$	4		$	2		$	2			122.0
Net income before federal income taxes	$	167		$	242		$	(76	)		(31.3	)	$	124		$	325		$	(200	)		(61.7	)
Federal and foreign income taxes incurred	$	25		$	83		$	(59	)		(70.5	)	$	(6	)	$	168		$	(173	)	nm
Net income (loss) (statutory)	$	142		$	159		$	(17	)		(10.8	)	$	130		$	157		$	(27	)		(17.2	)

*	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 Third-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		$	730		$	723		$	778		$	717		$	727		$	790		$	776		$	1,501		$	1,566		$	2,231		$	2,292			$	3,010
Net premiums earned		$	733		$	733		$	732		$	747		$	751		$	761		$	751		$	1,465		$	1,512		$	2,198		$	2,263			$	3,010
Losses paid		$	390		$	412		$	401		$	383		$	467		$	396		$	383		$	813		$	778		$	1,203		$	1,245			$	1,629
Loss reserve change			(22	)		112			56			(1	)		(11	)		83			35			169			119			147			108				107
Total losses incurred		$	368		$	524		$	457		$	382		$	456		$	479		$	418		$	982		$	897		$	1,350		$	1,353			$	1,736
Allocated loss expense paid			37			42			30			39			35			32			25			71			58			108			93				131
Allocated loss expense reserve change			8			7			6			(12	)		(16	)		1			12			14			12			22			(4	)			(16	)
Total allocated loss expense incurred		$	45		$	49		$	36		$	27		$	19		$	33		$	37		$	85		$	70		$	130		$	89			$	115
Unallocated loss expense paid			46			42			48			62			47			43			43			91			86			137			133				195
Unallocated loss expense reserve change			—			4			2			3			1			3			3			5			6			6			7				10
Total unallocated loss expense incurred		$	46		$	46		$	50		$	65		$	48		$	46		$	46		$	96		$	92		$	143		$	140			$	205
Underwriting expenses incurred			250			232			240			264			241			223			238			472			460			721			701				971
Underwriting (loss) profit		$	24		$	(118	)	$	(51	)	$	9		$	(13	)	$	(20	)	$	12		$	(170	)	$	(7	)	$	(146	)	$	(20	)		$	(17	)
Ratio Data
Loss ratio			50.2	%		71.6	%		62.5	%		51.2	%		60.8	%		63.0	%		55.6	%		67.0	%		59.3	%		61.4	%		59.8	%			57.7	%
Allocated loss expense ratio			6.1			6.7			4.9			3.5			2.5			4.3			5.0			5.8			4.6			5.9			3.9				3.8
Unallocated loss expense ratio			6.4			6.3			6.8			8.7			6.4			6.1			6.1			6.6			6.1			6.5			6.2				6.8
Net underwriting expense ratio			34.2			32.0			30.9			36.8			33.1			28.1			30.6			31.4			29.3			32.4			30.6				32.1
Statutory combined ratio			96.9	%		116.6	%		105.1	%		100.2	%		102.8	%		101.5	%		97.3	%		110.8	%		99.3	%		106.2	%		100.5	%			100.4	%
Statutory combined ratio excluding catastrophes			96.0	%		100.5	%		97.9	%		102.3	%		94.4	%		86.6	%		91.5	%		99.2	%		89.0	%		98.1	%		90.8	%			93.6	%
Loss Detail
New losses greater than $4,000,000		$	18		$	20		$	9		$	10		$	10		$	18		$	—		$	30		$	26		$	48		$	36			$	46
New losses $2,000,000-$4,000,000			24			21			17			19			17			25			22			39			39			63			56				75
New losses $1,000,000-$2,000,000			19			18			11			22			33			17			22			28			39			47			72				94
New losses $750,000-$1,000,000			8			7			11			12			14			13			9			19			21			27			35				48
New losses $500,000-$750,000			18			9			16			16			16			13			11			24			24			42			40				56
New losses $250,000-$500,000			29			31			35			35			33			27			29			66			57			95			90				124
Case reserve development above $250,000			51			70			56			82			59			54			49			125			103			177			162				245
Large losses subtotal		$	167		$	176		$	155		$	196		$	182		$	167		$	142		$	331		$	309		$	499		$	491			$	688
IBNR incurred			12			39			18			(16	)		(6	)		(6	)		6			57			—			69			(6	)			(22	)
Catastrophe losses incurred			7			118			53			(16	)		63			113			43			171			156			177			219				203
Remaining incurred			182			191			231			218			217			205			227			423			432			605			649				867
Total losses incurred		$	368		$	524		$	457		$	382		$	456		$	479		$	418		$	982		$	897		$	1,350		$	1,353			$	1,736
Loss Ratio
New losses greater than $4,000,000			2.5	%		2.8	%		1.3	%		1.3	%		1.3	%		2.4	%		0.0	%		2.0	%		1.7	%		2.2	%		1.6	%			1.5	%
New losses $2,000,000-$4,000,000			3.3			2.9			2.4			2.5			2.2			3.3			2.9			2.6			2.6			2.9			2.5				2.5
New losses $1,000,000-$2,000,000			2.6			2.4			1.4			2.9			4.4			2.2			2.9			1.9			2.6			2.1			3.0				3.1
New losses $750,000-$1,000,000			1.2			1.0			1.5			1.6			1.9			1.7			1.1			1.3			1.4			1.2			1.6				1.6
New losses $500,000-$750,000			2.4			1.2			2.1			2.2			2.1			1.7			1.5			1.7			1.6			1.9			1.8				1.9
New losses $250,000-$500,000			3.9			4.2			4.8			4.6			4.4			3.6			3.9			4.5			3.7			4.3			4.0				4.1
Case reserve development above $250,000			7.0			9.6			7.6			11.0			7.9			7.1			6.5			8.5			6.9			8.0			7.2				8.1
Large losses subtotal			22.9	%		24.1	%		21.1	%		26.1	%		24.2	%		22.0	%		18.8	%		22.5	%		20.5	%		22.6	%		21.7	%			22.8	%
IBNR incurred			1.7			5.3			2.5			(2.1	)		(0.8	)		(0.9	)		0.8			3.9			0.0			3.2			(0.3	)			(0.7	)
Total catastrophe losses incurred			0.9			16.1			7.2			(2.1	)		8.4			14.9			5.7			11.6			10.3			8.1			9.7				6.8
Remaining incurred			24.7			26.1			31.7			29.3			29.0			27.0			30.2			29.0			28.5			27.5			28.7				28.8
Total loss ratio			50.2	%		71.6	%		62.5	%		51.2	%		60.8	%		63.0	%		55.5	%		67.0	%		59.3	%		61.4	%		59.8	%			57.7	%
Loss Claim Count
New losses greater than $4,000,000			4			4			2			2			2			5			2			6			7			10			9				11
New losses $2,000,000-$4,000,000			10			8			7			7			6			8			5			15			13			25			19				26
New losses $1,000,000-$2,000,000			16			14			9			17			27			13			19			23			32			39			59				76
New losses $750,000-$1,000,000			10			8			13			14			17			15			10			21			25			31			42				56
New losses $500,000-$750,000			31			14			28			28			28			23			21			42			44			73			72				100
New losses $250,000-$500,000			89			92			108			105			100			84			87			200			171			289			271				376
Case reserve development above $250,000			81			108			89			146			102			84			81			197			165			278			267				413
Large losses total			241			248			256			319			282			232			225			504			457			745			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 Third-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		$	528		$	524		$	626		$	552		$	538		$	597		$	625		$	1,149		$	1,222		$	1,678		$	1,759			$	2,311
Net premiums earned		$	555		$	556		$	557		$	573		$	582		$	586		$	574		$	1,112		$	1,161		$	1,667		$	1,743			$	2,316
Losses paid		$	267		$	275		$	271		$	262		$	326		$	280		$	266		$	546		$	546		$	813		$	871			$	1,133
Loss reserve change			(11	)		92			50			26			(3	)		67			32			142			100			131			97				123
Total losses incurred		$	256		$	367		$	321		$	288		$	323		$	347		$	298		$	688		$	646		$	944		$	968			$	1,256
Allocated loss expense paid			33			39			26			35			31			28			22			64			50			97			82				116
Allocated loss expense reserve change			7			5			6			(13	)		(15	)		1			12			11			13			18			(3	)			(16	)
Total allocated loss expense incurred		$	40		$	44		$	32		$	22		$	16		$	29		$	34		$	75		$	63		$	115		$	79			$	100
Unallocated loss expense paid			33			28			34			42			34			31			30			62			61			95			95				137
Unallocated loss expense reserve change			—			3			2			7			(1	)		1			3			5			4			5			4				10
Total unallocated loss expense incurred		$	33		$	31		$	36		$	49		$	33		$	32		$	33		$	67		$	65		$	100		$	99			$	147
Underwriting expenses incurred			188			170			183			204			180			166			186			353			352			541			532				742
Underwriting (loss) profit		$	38		$	(56	)	$	(15	)	$	10		$	30		$	12		$	23		$	(71	)	$	35		$	(33	)	$	65			$	71
Ratio Data
Loss ratio			46.2	%		66.0	%		57.6	%		50.3	%		55.4	%		59.2	%		52.0	%		61.8	%		55.6	%		56.7	%		55.5	%			54.2	%
Allocated loss expense ratio			7.1			7.8			5.8			3.8			2.7			5.0			5.9			6.8			5.4			6.9			4.5				4.3
Unallocated loss expense ratio			6.0			5.7			6.4			8.4			5.7			5.5			5.7			6.0			5.7			6.0			5.7				6.4
Net underwriting expense ratio			35.6			32.5			29.2			36.5			33.5			27.8			29.7			30.8			28.8			32.2			30.2				31.7
Statutory combined ratio			94.9	%		112.0	%		99.0	%		99.0	%		97.3	%		97.5	%		93.3	%		105.4	%		95.5	%		101.8	%		95.9	%			96.6	%
Statutory combined ratio excluding catastrophes			96.1	%		101.7	%		96.5	%		100.5	%		93.3	%		86.2	%		89.4	%		99.0	%		87.8	%		98.0	%		89.5	%			92.2	%
Loss Detail
New losses greater than $4,000,000		$	13		$	21		$	9		$	10		$	5		$	18		$	—		$	30		$	26		$	43		$	31			$	41
New losses $2,000,000-$4,000,000			19			22			17			19			17			25			22			38			40			58			56				75
New losses $1,000,000-$2,000,000			14			15			9			18			26			15			18			24			33			38			60				78
New losses $750,000-$1,000,000			7			7			9			10			12			11			8			16			19			23			31				41
New losses $500,000-$750,000			15			7			12			11			14			12			9			19			20			34			34				45
New losses $250,000-$500,000			22			24			26			28			25			22			23			51			45			72			70				98
Case reserve development above $250,000			49			63			51			76			57			51			44			114			96			163			153				229
Large losses subtotal		$	139		$	159		$	133		$	172		$	156		$	154		$	124		$	292		$	279		$	431		$	435			$	607
IBNR incurred			11			38			18			(12	)		(7	)		(8	)		6			56			(2	)		67			(10	)			(22	)
Catastrophe losses incurred			(7	)		57			14			(9	)		23			66			22			71			89			64			112				103
Remaining incurred			113			113			156			137			151			135			146			269			280			382			431				568
Total losses incurred		$	256		$	367		$	321		$	288		$	323		$	347		$	298		$	688		$	646		$	944		$	968			$	1,256
Loss Ratio
New losses greater than $4,000,000			2.4	%		3.7	%		1.7	%		1.8	%		0.9	%		3.1	%		0.0	%		2.7	%		2.3	%		2.6	%		1.8	%			1.8	%
New losses $2,000,000-$4,000,000			3.5			3.9			3.1			3.2			2.9			4.3			3.9			3.5			3.4			3.5			3.2				3.2
New losses $1,000,000-$2,000,000			2.6			2.6			1.6			3.1			4.5			2.5			3.2			2.1			2.9			2.3			3.4				3.4
New losses $750,000-$1,000,000			1.2			1.3			1.6			1.7			2.1			1.9			1.3			1.5			1.6			1.4			1.8				1.8
New losses $500,000-$750,000			2.7			1.3			2.1			2.0			2.3			2.0			1.5			1.7			1.7			2.1			1.9				2.0
New losses $250,000-$500,000			3.9			4.4			4.7			4.9			4.3			3.8			4.0			4.5			3.9			4.3			4.0				4.2
Case reserve development above $250,000			8.8			11.4			9.1			13.2			9.8			8.7			7.8			10.3			8.3			9.8			8.8				9.9
Large losses subtotal			25.1	%		28.6	%		23.9	%		29.9	%		26.8	%		26.3	%		21.7	%		26.3	%		24.0	%		26.0	%		24.9	%			26.3	%
IBNR incurred			2.0			6.7			3.3			(2.1	)		(1.3	)		(1.4	)		1.0			5.0			(0.2	)		4.0			(0.6	)			(0.9	)
Total catastrophe losses incurred			(1.2	)		10.3			2.5			(1.5	)		4.0			11.3			3.9			6.4			7.7			3.8			6.4				4.5
Remaining incurred			20.3			20.4			27.9			24.0			25.9			23.0			25.4			24.1			24.2			22.9			24.8				24.3
Total loss ratio			46.2	%		66.0	%		57.6	%		50.3	%		55.4	%		59.2	%		52.0	%		61.8	%		55.7	%		56.7	%		55.5	%			54.2	%
Loss Claim Count
New losses greater than $4,000,000			3			4			2			2			1			4			2			6			4			9			7				9
New losses $2,000,000-$4,000,000			8			8			7			7			6			9			5			15			14			23			20				27
New losses $1,000,000-$2,000,000			12			11			8			14			21			12			16			19			22			31			49				63
New losses $750,000-$1,000,000			8			8			10			11			15			13			9			18			21			26			37				48
New losses $500,000-$750,000			26			12			21			19			24			21			16			33			40			59			61				80
New losses $250,000-$500,000			67			72			81			85			74			67			68			153			166			220			209				294
Case reserve development above $250,000			74			93			77			129			95			76			74			170			206			244			245				374
Large losses total			198			208			206			267			236			202			190			414			473			612			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 Third-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		$	190		$	145		$	160		$	184		$	191		$	150		$	334		$	341		$	524		$	525			$	685
Net premiums earned		$	170		$	172		$	171		$	171		$	167		$	174		$	177		$	343		$	351		$	513		$	518			$	689
Losses paid		$	121		$	137		$	130		$	123		$	141		$	116		$	116		$	267		$	232		$	389		$	373			$	496
Loss reserve change			(14	)		18			4			(31	)		(8	)		16			3			22			19			7			11				(20	)
Total losses incurred		$	107		$	155		$	134		$	92		$	133		$	132		$	119		$	289		$	251		$	396		$	384			$	476
Allocated loss expense paid			4			4			3			4			4			4			3			7			7			11			11				15
Allocated loss expense reserve change			—			—			—			1			(1	)		(1	)		—			—			—			—			(1	)			(1	)
Total allocated loss expense incurred		$	4		$	4		$	3		$	5		$	3		$	3		$	3		$	7		$	7		$	11		$	10			$	14
Unallocated loss expense paid			14			14			15			19			13			13			13			28			25			41			38				57
Unallocated loss expense reserve change			—			1			—			(3	)		1			1			1			—			2			1			3				1
Total unallocated loss expense incurred		$	14		$	15		$	15		$	16		$	14		$	14		$	14		$	28		$	27		$	42		$	41			$	58
Underwriting expenses incurred			56			56			51			58			56			55			51			108			106			163			162				224
Underwriting loss		$	(11	)	$	(58	)	$	(32	)	$	—		$	(39	)	$	(30	)	$	(10	)	$	(89	)	$	(40	)	$	(100	)	$	(79	)		$	(83	)
Ratio Data
Loss ratio			63.1	%		90.1	%		78.3	%		53.6	%		79.7	%		75.6	%		67.4	%		84.2	%		71.5	%		77.1	%		74.1	%			69.0	%
Allocated loss expense ratio			2.4			2.4			1.9			2.7			1.8			1.9			1.9			2.2			1.9			2.2			1.9				2.1
Unallocated loss expense ratio			7.8			8.2			8.3			9.6			8.7			7.9			7.4			8.3			7.6			8.1			8.0				8.3
Net underwriting expense ratio			29.5			29.8			35.4			36.2			30.4			28.9			34.1			32.1			31.2			31.2			30.9				32.2
Statutory combined ratio			102.8	%		130.5	%		123.9	%		102.1	%		120.6	%		114.3	%		110.8	%		126.8	%		112.2	%		118.7	%		114.9	%			111.6	%
Statutory combined ratio excluding catastrophes			94.9	%		95.1	%		101.3	%		106.2	%		96.8	%		87.3	%		99.2	%		97.8	%		92.9	%		96.7	%		94.2	%			97.1	%
Loss Detail
New losses greater than $4,000,000		$	5		$	—		$	—		$	—		$	5		$	—		$	—		$	—		$	—		$	5		$	5			$	5
New losses $2,000,000-$4,000,000			5			—			—			—			—			—			—			—			—			5			—				—
New losses $1,000,000-$2,000,000			5			3			1			4			6			2			4			5			5			10			12				16
New losses $750,000-$1,000,000			2			—			2			3			2			2			1			2			3			4			4				7
New losses $500,000-$750,000			3			1			4			5			2			1			3			5			4			8			6				11
New losses $250,000-$500,000			7			7			9			7			8			5			6			15			12			22			20				26
Case reserve development above $250,000			2			7			5			6			2			3			4			12			7			14			9				16
Large losses subtotal		$	29		$	18		$	21		$	25		$	25		$	13		$	18		$	39		$	31		$	68		$	56			$	81
IBNR incurred			—			—			(1	)		(4	)		2			2			—			(1	)		2			(1	)		4				—
Catastrophe losses incurred			13			61			39			(7	)		40			47			21			100			67			113			107				100
Remaining incurred			65			76			75			78			66			70			80			151			151			216			217				295
Total losses incurred		$	107		$	155		$	134		$	92		$	133		$	132		$	119		$	289		$	251		$	396		$	384			$	476
Loss Ratio
New losses greater than $4,000,000			2.9	%		0.0	%		0.0	%		0.0	%		3.0	%		0.0	%		0.0	%		0.0	%		0.0	%		1.0	%		1.0	%			0.7	%
New losses $2,000,000-$4,000,000			3.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			1.0			0.0				0.0
New losses $1,000,000-$2,000,000			2.7			1.9			0.8			2.4			3.8			1.1			2.1			1.4			1.6			1.8			2.3				2.3
New losses $750,000-$1,000,000			1.1			0.0			1.4			1.5			1.0			1.1			0.4			0.7			0.8			0.8			0.8				1.0
New losses $500,000-$750,000			1.7			0.8			2.2			2.9			1.3			0.7			1.5			1.5			1.1			1.5			1.2				1.6
New losses $250,000-$500,000			4.2			4.0			5.0			3.9			4.8			3.0			3.6			4.5			3.3			4.4			3.8				3.8
Case reserve development above $250,000			1.3			3.7			3.0			3.8			1.4			1.5			2.5			3.3			1.9			2.7			1.7				2.3
Large losses subtotal			16.9	%		10.4	%		12.4	%		14.5	%		15.3	%		7.5	%		10.0	%		11.4	%		8.7	%		13.2	%		10.8	%			11.7	%
IBNR incurred			(0.2	)		0.1			(0.6	)		(2.3	)		1.0			0.9			0.2			(0.3	)		0.6			(0.3	)		0.7				0.0
Total catastrophe losses incurred			7.9			35.4			22.6			(4.1	)		23.8			27.0			11.6			29.0			19.3			22.0			20.7				14.5
Remaining incurred			38.5			44.2			43.9			45.5			39.6			40.2			45.6			44.1			42.9			42.2			41.9				42.8
Total loss ratio			63.1	%		90.1	%		78.3	%		53.6	%		79.7	%		75.6	%		67.4	%		84.2	%		71.5	%		77.1	%		74.1	%			69.0	%
Loss Claim Count
New losses greater than $4,000,000			1			—			—			—			1			—			—			—			—			1			1				—
New losses $2,000,000-$4,000,000			2			—			—			—			—			—			—			—			—			2			—				3
New losses $1,000,000-$2,000,000			4			3			1			3			6			1			3			4			4			8			10				7
New losses $750,000-$1,000,000			2			—			3			3			2			2			1			3			6			5			5				14
New losses $500,000-$750,000			5			2			7			9			4			2			5			9			16			14			11				51
New losses $250,000-$500,000			22			20			27			20			26			17			19			47			47			69			62				28
Case reserve development above $250,000			7			15			12			17			7			8			7			27			29			34			22				79
Large losses total			43			40			50			52			46			30			35			90			102			133			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 Third-Quarter Supplement 12

Consolidated Cincinnati Insurance Companies
Agency Direct Written Premiums by Risk State by Line of Business for the Nine Months Ended September 30, 2009

(Dollars in millions)	Standard Market																				Surplus Lines						Standard Market						*Consolidated
	Commercial Lines														Personal Lines						Commercial		Consolidated				Commercial			Personal			Total
	Comm		Comm		Comm		Workers’		Specialty		Surety &		Mach. &		Pers		Home		Other		Casualty		2009		2008		Change			Change			Change
Risk State	Casualty		Prop		Auto		Comp		Packages		Exec Risk		Equip		Auto		Owner		Personal		& Prop		Total		Total		%			%			%
AL	$	13.9	$	13.2	$	5.8	$	0.9	$	6.1	$	1.8	$	0.5	$	12.6	$	19.3	$	4.2	$	0.8	$	79.2	$	78.5		(0.9	)		0.9			0.9
AZ		8.0		4.9		7.3		0.7		0.8		0.7		0.4		0.5		0.5		0.2		0.2		24.2		24.9		(7.5	)		361.4			(2.9	)
AR		7.0		8.0		4.7		3.0		3.4		1.4		0.4		2.0		2.3		0.7		0.6		33.5		34.1		(5.0	)		5.9			(1.8	)
CO		0.2		0.3		0.2		0.3		—		0.2		—		—		0.1		—		—		1.5		1.5		(3.2	)		(1.2	)		(2.5	)
DE		1.7		1.2		0.9		2.1		0.2		0.1		0.1		—		—		—		—		6.4		4.5		43.2			228.8			43.2
FL		17.7		17.3		7.0		0.9		1.6		1.8		0.7		8.1		12.8		2.4		—		70.3		83.7		(19.3	)		(8.6	)		(16.0	)
GA		19.6		16.3		13.7		9.7		5.9		5.2		0.8		23.4		21.2		6.3		2.2		124.3		122.6		(0.6	)		1.6			1.4
ID		7.4		3.6		3.9		0.2		0.7		0.9		0.2		0.2		0.1		—		0.2		17.5		17.3		(2.4	)	nm				0.8
IL		47.4		33.5		21.8		37.4		10.1		5.4		2.3		18.7		14.4		5.1		2.9		199.0		210.8		(7.9	)		1.9			(5.5	)
IN		32.8		27.7		17.6		19.9		6.4		5.2		1.9		20.6		19.1		5.3		3.9		160.4		164.8		(4.7	)		(1.2	)		(2.6	)
IA		15.1		11.2		7.1		17.8		3.4		2.5		1.1		2.6		2.6		1.3		0.3		64.9		66.8		(2.7	)		(8.2	)		(2.8	)
KS		6.3		6.8		3.7		6.8		2.4		1.6		0.4		3.2		4.0		0.9		0.3		36.3		35.1		4.2			(2.2	)		3.4
KY		15.8		16.6		10.3		2.7		4.4		2.7		0.8		15.7		12.1		3.4		1.1		85.5		82.7		1.7			2.9			3.5
MD		10.7		5.2		8.2		7.9		0.9		1.1		0.3		0.2		1.3		0.4		0.6		36.8		36.5		(1.8	)		18.4			0.8
MI		23.5		16.2		10.2		10.7		8.6		4.9		1.4		8.6		10.4		2.4		1.4		98.3		101.2		(4.9	)		(0.9	)		(2.9	)
MN		15.2		11.9		6.5		5.5		2.6		1.7		0.9		4.8		4.2		2.8		1.1		57.2		58.9		(6.6	)		5.2			(2.8	)
MO		16.3		15.1		9.7		10.8		4.4		2.5		0.8		2.3		3.3		0.8		1.2		67.2		68.7		(5.5	)		14.0			(2.2	)
MT		10.2		5.7		5.4		0.1		0.8		0.3		0.4		0.8		0.7		0.2		0.3		24.8		24.1		(1.7	)		117.9			3.3
NE		4.8		4.1		2.5		5.2		1.0		0.8		0.3		0.6		0.7		0.3		0.2		20.6		21.9		(7.2	)		(1.5	)		(5.9	)
NH		2.3		1.5		1.0		1.8		0.6		0.4		0.1		0.5		0.5		0.3		0.2		9.1		8.6		4.2			0.7			6.0
NM		2.2		0.7		1.1		0.3		0.1		0.4		—		—		—		—		0.1		5.1		2.8		76.2			176.2			79.1
NY		24.6		7.1		9.4		1.8		1.0		2.0		0.5		—		—		—		0.3		46.8		41.4		12.4			7.3			13.2
NC		24.0		19.7		15.1		19.1		9.6		6.0		1.3		3.9		3.5		2.5		1.4		106.0		115.5		(14.6	)		130.2			(8.3	)
ND		3.7		2.6		2.0		—		0.7		0.5		0.2		0.3		0.4		0.1		0.1		10.6		11.1		(5.9	)		10.1			(4.1	)
OH		105.3		68.1		45.0		—		14.9		18.0		3.8		92.1		64.6		23.6		3.8		438.9		461.4		(4.8	)		(5.9	)		(4.9	)
PA		34.1		22.3		21.8		37.2		7.1		4.5		1.4		5.5		4.3		2.7		1.0		142.0		146.5		(3.8	)		(3.2	)		(3.1	)
SC		9.2		5.9		4.7		4.2		1.8		1.8		0.3		0.3		0.2		0.2		0.4		28.9		32.9		(14.7	)		231.4			(12.0	)
SD		2.8		1.8		1.3		2.9		0.3		0.3		0.1		—		—		—		0.1		9.6		12.2		(22.0	)		(6.5	)		(21.2	)
TN		17.2		14.6		10.6		7.9		7.0		3.8		0.9		6.5		6.8		2.6		0.8		78.7		80.0		(3.7	)		2.1			(1.6	)
TX		3.4		4.1		2.0		1.6		0.3		0.4		0.3		—		—		—		0.5		12.6		4.3		180.6			50.0			193.3
UT		9.1		4.3		5.1		0.1		0.5		1.8		0.3		0.9		0.3		0.1		0.8		23.2		21.4		(1.0	)	nm				8.5
VT		3.5		3.0		2.3		4.1		0.7		0.7		0.2		0.5		0.7		0.2		0.2		16.2		17.3		(7.7	)		(4.6	)		(6.2	)
VA		22.3		17.7		13.8		12.8		3.8		5.0		1.0		6.9		5.7		2.3		1.0		92.3		101.0		(10.6	)		(2.2	)		(8.6	)
WA		1.2		0.5		0.8		—		—		0.1		0.1		—		—		—		0.2		3.0		1.0		181.8		nm				206.5
WV		5.7		3.7		3.8		0.7		1.8		1.0		0.2		—		0.5		0.1		0.6		18.1		16.7		5.0			(9.1	)		8.2
WI		20.2		12.9		8.9		20.1		3.1		1.8		1.4		6.5		5.3		2.5		1.1		83.9		86.7		(3.7	)		(4.9	)		(3.2	)
WY		0.5		0.1		0.1		—		—		0.1		—		—		—		—		—		0.8		0.6		31.2			32.2			31.3
All Other		2.2		2.0		1.9		3.1		0.2		1.1		0.1		—		0.1		—		—		10.8		9.7		10.2			29.4			10.3
Total	$	567.0	$	411.4	$	297.2	$	260.4	$	117.2	$	90.6	$	25.9	$	248.9	$	222.2	$	73.9	$	30.0	$	2,344.7	$	2,409.6		(4.6	)		(0.4	)		(2.7	)
Other Direct		—		1.2		—		2.5		—		—		—		—		2.2		—		—		5.9		9.8		(50.4	)		(6.3	)		(39.9	)
Total Direct	$	567.0	$	412.6	$	297.2	$	262.9	$	117.2	$	90.6	$	25.9	$	248.9	$	224.4	$	73.9	$	30.0	$	2,350.6	$	2,419.4		(4.7	)		(0.4	)		(2.8	)

	Surplus direct premiums written were $30.0 million and $8.4 million for the nine months ended September 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 Third-Quarter Supplement 13

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
Commercial casualty:
Written premiums		$	168		$	171		$	209		$	183		$	171		$	199		$	211		$	379		$	410		$	548		$	582			$	764
Earned premiums			180			180			187			183			196			194			190			366			384			546			580				763
Loss and loss expenses ratio			45.0	%		54.2	%		55.2	%		23.9	%		44.4	%		39.8	%		58.3	%		54.7	%		48.9	%		51.5	%		47.4	%			41.7	%
Less catastrophe loss ratio			—			—			—			—			—			—			—			—			—			—			—				—
Loss and loss expenses excluding catastrophe loss ratio			45.0	%		54.2	%		55.2	%		23.9	%		44.4	%		39.8	%		58.3	%		54.7	%		48.9	%		51.5	%		47.4	%			41.7	%
Commercial property:
Written premiums		$	124		$	113		$	132		$	117		$	117		$	124		$	124		$	245		$	247		$	370		$	364			$	481
Earned premiums			122			120			121			122			120			123			122			241			244			362			364				487
Loss and loss expenses ratio			42.8	%		88.3	%		69.0	%		47.2	%		70.0	%		97.6	%		75.5	%		78.6	%		86.6	%		66.6	%		81.1	%			72.6	%
Less catastrophe loss ratio			0.6			23.5			7.4			(5.3	)		15.6			38.0			16.5			15.4			27.3			10.4			23.4				16.2
Loss and loss expenses excluding catastrophe loss ratio			42.2	%		64.8	%		61.6	%		52.5	%		54.4	%		59.6	%		59.0	%		63.2	%		59.3	%		56.2	%		57.7	%			56.4	%
Commercial auto:
Written premiums		$	92		$	94		$	110		$	94		$	93		$	108		$	107		$	204		$	215		$	296		$	308			$	402
Earned premiums			99			98			99			103			103			104			101			197			205			296			308				411
Loss and loss expenses ratio			67.9	%		62.5	%		59.7	%		94.8	%		63.2	%		67.5	%		63.4	%		61.1	%		65.5	%		63.4	%		64.7	%			72.3	%
Less catastrophe loss ratio			(0.8	)		3.3			(0.1	)		(0.8	)		0.1			3.4			(0.4	)		1.6			1.5			0.8			1.0				0.6
Loss and loss expenses excluding catastrophe loss ratio			68.7	%		59.2	%		59.8	%		95.6	%		63.1	%		64.1	%		63.8	%		59.5	%		64.0	%		62.6	%		63.7	%			71.7	%
Workers’ compensation:
Written premiums		$	69		$	79		$	104		$	89		$	84		$	95		$	114		$	183		$	209		$	252		$	293			$	382
Earned premiums			82			88			83			93			93			94			94			171			189			253			282				375
Loss and loss expenses ratio			110.2	%		130.2	%		117.5	%		128.2	%		90.9	%		78.3	%		64.8	%		124.0	%		71.5	%		119.5	%		77.9	%			90.4	%
Less catastrophe loss ratio			—			—			—			—			—			—			—			—			—			—			—				—
Loss and loss expenses excluding catastrophe loss ratio			110.2	%		130.2	%		117.5	%		128.2	%		90.9	%		78.3	%		64.8	%		124.0	%		71.5	%		119.5	%		77.9	%			90.4	%
Specialty package:
Written premiums		$	38		$	35		$	38		$	37		$	36		$	36		$	37		$	73		$	73		$	110		$	109			$	145
Earned premiums			37			37			35			36			35			36			35			72			72			110			107				144
Loss and loss expenses ratio			33.5	%		114.3	%		96.0	%		40.6	%		80.2	%		109.7	%		63.4	%		105.4	%		86.8	%		81.0	%		84.6	%			73.5	%
Less catastrophe loss ratio			(18.2	)		68.8			13.7			(3.8	)		12.2			43.9			8.1			41.9			26.2			21.5			21.5				15.2
Loss and loss expenses excluding catastrophe loss ratio			51.7	%		45.5	%		82.3	%		44.4	%		68.0	%		65.8	%		55.3	%		63.5	%		60.6	%		59.5	%		63.1	%			58.3	%
Surety and executive risk:
Written premiums		$	28		$	25		$	25		$	24		$	29		$	28		$	25		$	50		$	54		$	78		$	82			$	107
Earned premiums			27			25			25			28			27			28			25			50			53			77			80				107
Loss and loss expenses ratio			85.6	%		67.0	%		30.3	%		76.5	%		73.6	%		92.0	%		45.9	%		48.8	%		70.1	%		61.7	%		71.3	%			72.6	%
Less catastrophe loss ratio			—			—			—			—			—			—			—			—			—			—			—				—
Loss and loss expenses excluding catastrophe loss ratio			85.6	%		67.0	%		30.3	%		76.5	%		73.6	%		92.0	%		45.9	%		48.8	%		70.1	%		61.7	%		71.3	%			72.6	%
Machinery and equipment:
Written premiums		$	9		$	7		$	8		$	8		$	8		$	7		$	7		$	15		$	14		$	24		$	22			$	30
Earned premiums			8			8			7			8			7			7			7			15			14			23			22				29
Loss and loss expense ratio			38.4	%		39.7	%		59.3	%		50.4	%		32.4	%		34.1	%		53.3	%		49.3	%		43.6	%		45.6	%		39.8	%			42.5	%
Less catastrophe loss ratio			(0.1	)		1.2			4.5			(0.2	)		2.8			1.0			—			2.8			0.6			1.8			1.3				0.9
Loss and loss expense excluding catastrophe loss ratio			38.5	%		38.5	%		54.8	%		50.6	%		29.6	%		33.1	%		53.3	%		46.5	%		43.0	%		43.8	%		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.

2009 Third-Quarter Supplement 14

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
Personal auto:
Written premiums		$	90		$	89		$	68		$	73		$	88		$	89		$	69		$	157		$	158		$	246		$	246			$	320
Earned premiums			80			80			79			80			81			82			83			159			164			239			245				325
Loss and loss expenses ratio			64.9	%		75.7	%		63.6	%		81.0	%		63.7	%		56.8	%		67.6	%		69.7	%		62.2	%		68.1	%		62.7	%			67.2	%
Less catastrophe loss ratio			0.6			3.1			0.3			(1.6	)		1.7			3.1			1.7			1.7			2.4			1.4			2.2				1.2
Loss and loss expenses excluding catastrophe loss ratio			64.3	%		72.6	%		63.3	%		82.6	%		62.0	%		53.7	%		65.9	%		68.0	%		59.8	%		66.7	%		60.5	%			66.0	%
Homeowner:
Written premiums		$	75		$	76		$	56		$	65		$	72		$	79		$	60		$	132		$	139		$	208		$	212			$	277
Earned premiums			68			70			70			69			64			71			72			140			143			207			208				277
Loss and loss expenses ratio			96.4	%		147.8	%		132.9	%		52.9	%		122.8	%		130.7	%		91.4	%		140.3	%		110.9	%		126.0	%		114.6	%			99.2	%
Less catastrophe loss ratio			18.0			77.6			51.5			(8.5	)		54.5			60.0			25.2			64.5			42.5			49.4			46.2				32.5
Loss and loss expenses excluding catastrophe loss ratio			78.4	%		70.2	%		81.4	%		61.4	%		68.3	%		70.7	%		66.2	%		75.8	%		68.4	%		76.6	%		68.4	%			66.7	%
Other personal:
Written premiums		$	25		$	25		$	21		$	21		$	24		$	23		$	21		$	45		$	44		$	70		$	67			$	88
Earned premiums			22			22			22			22			22			21			22			44			44			67			65				87
Loss and loss expenses ratio			33.8	%		42.6	%		37.8	%		51.8	%		91.5	%		43.2	%		62.2	%		40.2	%		52.9	%		38.0	%		65.8	%			62.2	%
Less catastrophe loss ratio			3.4			18.7			11.0			0.4			14.5			8.0			4.1			14.8			6.0			11.0			8.9				6.7
Loss and loss expenses excluding catastrophe loss ratio			30.4	%		23.9	%		26.8	%		51.4	%		77.0	%		35.2	%		58.1	%		25.4	%		46.9	%		27.0	%		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.

2009 Third-Quarter Supplement 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		$	542		$	529		$	482		$	610		$	566		$	532		$	467		$	1,010		$	999		$	1,553		$	1,563			$	2,175
Loss and loss expenses — prior AY’s			(89	)		(27	)		9			(120	)		(107	)		(87	)		(9	)		(18	)		(96	)		(107	)		(201	)			(320	)
Catastrophes — current AY			8			120			55			(17	)		59			113			47			175			160			183			220				203
Catastrophes — prior AY’s			(2	)		(2	)		(2	)		1			3			—			(4	)		(4	)		(4	)		(6	)		(1	)			—
Total		$	459		$	620		$	544		$	474		$	521		$	558		$	501		$	1,163		$	1,059		$	1,623		$	1,581			$	2,058
Ratio to Earned Premiums
Loss and loss expenses :
Loss and loss expenses — current AY			73.9	%		72.1	%		65.8	%		81.9	%		75.3	%		69.7	%		62.2	%		69.0	%		66.0	%		70.6	%		69.1	%			72.2	%
Loss and loss expenses — prior AY’s			(12.1	)		(3.7	)		1.2			(16.2	)		(14.0	)		(11.3	)		(1.2	)		(1.2	)		(6.3	)		(4.9	)		(8.9	)			(10.6	)
Catastrophes — current AY			1.2			16.3			7.5			(2.2	)		8.0			15.0			6.2			11.9			10.5			8.4			9.7				6.7
Catastrophes — prior AY’s			(0.3	)		(0.2	)		(0.3	)		0.1			0.4			(0.1	)		(0.5	)		(0.3	)		(0.2	)		(0.3	)		0.0				0.0
Total			62.7	%		84.5	%		74.2	%		63.6	%		69.7	%		73.3	%		66.7	%		79.4	%		70.0	%		73.8	%		69.9	%			68.3	%
Commercial Lines
Loss and loss expenses:
Loss and loss expenses — current AY		$	407		$	403		$	363		$	464		$	437		$	416		$	354		$	766		$	770		$	1,173		$	1,208			$	1,672
Loss and loss expenses — prior AY’s			(71	)		(18	)		11			(97	)		(89	)		(74	)		(11	)		(7	)		(85	)		(78	)		(174	)			(270	)
Catastrophes — current AY			(4	)		61			17			(9	)		22			66			25			78			92			74			114				105
Catastrophes — prior AY’s			(3	)		(4	)		(3	)		—			1			—			(3	)		(7	)		(3	)		(10	)		(2	)			(2	)
Total		$	329		$	442		$	388		$	358		$	371		$	408		$	365		$	830		$	774		$	1,159		$	1,146			$	1,505
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses — current AY			73.3	%		72.5	%		65.2	%		80.9	%		75.0	%		70.8	%		61.6	%		68.8	%		66.4	%		70.4	%		69.3	%			72.3	%
Loss and loss expenses — prior AY’s			(12.8	)		(3.2	)		2.1			(17.0	)		(15.2	)		(12.4	)		(1.9	)		(0.6	)		(7.3	)		(4.6	)		(10.0	)			(11.7	)
Catastrophes — current AY			(0.6	)		10.9			3.1			(1.5	)		3.8			11.4			4.5			7.0			7.9			4.4			6.5				4.5
Catastrophes — prior AY’s			(0.6	)		(0.7	)		(0.6	)		0.0			0.2			(0.1	)		(0.6	)		(0.6	)		(0.3	)		(0.6	)		(0.1	)			(0.1	)
Total			59.3	%		79.5	%		69.8	%		62.4	%		63.8	%		69.7	%		63.6	%		74.6	%		66.7	%		69.6	%		65.7	%			65.0	%
Personal Lines
Loss and loss expenses:
Loss and loss expenses — current AY		$	130		$	121		$	115		$	143		$	128		$	114		$	113		$	237		$	228		$	366		$	356			$	499
Loss and loss expenses — prior AY’s			(18	)		(9	)		(2	)		(23	)		(17	)		(12	)		2			(12	)		(11	)		(29	)		(28	)			(51	)
Catastrophes — current AY			12			59			38			(8	)		38			47			22			97			68			109			106				98
Catastrophes — prior AY’s			1			2			1			1			2			—			(1	)		3			(1	)		4			1				2
Total		$	125		$	173		$	152		$	113		$	151		$	149		$	136		$	325		$	284		$	450		$	435			$	548
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses — current AY			76.1	%		70.9	%		67.4	%		83.8	%		76.3	%		65.6	%		64.1	%		69.0	%		64.8	%		71.3	%		68.6	%			72.4	%
Loss and loss expenses — prior AY’s			(10.7	)		(5.4	)		(1.4	)		(13.7	)		(10.0	)		(7.2	)		1.0			(3.4	)		(3.1	)		(5.8	)		(5.3	)			(7.3	)
Catastrophes — current AY			7.3			34.3			22.0			(4.7	)		22.9			27.0			11.9			28.1			19.4			21.2			20.6				14.2
Catastrophes — prior AY’s			0.6			1.1			0.6			0.5			0.9			0.0			(0.3	)		0.9			(0.1	)		0.8			0.1				0.3
Total			73.3	%		100.9	%		88.6	%		65.9	%		90.1	%		85.4	%		76.7	%		94.6	%		81.0	%		87.5	%		84.0	%			79.6	%

2009 Third-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 September 30, 2009
Commercial casualty	$	188	$	92	$	280	$	24		$	(30	)	$	9		$	2		$	212		$	(30	)	$	101	$	282
Commercial property		255		34		289		(17	)		13			—			(4	)		238			13			34		285
Commercial auto		167		28		195		(11	)		3			—			(8	)		156			3			28		187
Workers’ compensation		184		30		214		(6	)		89			12			95			178			89			42		309
Specialty packages		71		13		84		(3	)		8			1			6			68			8			13		90
Surety and executive risk		34		7		41		(2	)		2			(1	)		—			32			2			6		41
Machinery and equipment		8		1		9		—			—			—			—			8			—			1		9
Total commercial lines		908		204		1,112		(14	)		86			22			91			892			85			226		1,203
Personal auto		152		21		173		(11	)		1			—			(10	)		141			1			21		163
Homeowners		217		26		244		8			20			2			30			225			20			29		274
Other personal		37		4		41		(12	)		(2	)		(1	)		(15	)		24			(2	)		3		26
Total personal lines		406		52		458		(16	)		19			2			5			390			19			53		463
Total property casualty group	$	1,314	$	257	$	1,570	$	(30	)	$	105		$	23		$	96		$	1,283		$	104		$	279	$	1,666
Ceded loss and loss expense incurred at September 30, 2009
Commercial casualty	$	31	$	9	$	40	$	(31	)	$	(7	)	$	(1	)	$	(39	)	$	—		$	(7	)	$	7	$	1
Commercial property		41		—		41		2			1			—			3			42			1			—		43
Commercial auto		1		—		1		(2	)		—			—			(2	)		—			—			—		—
Workers’ compensation		11		1		11		(7	)		2			—			(4	)		4			2			1		7
Specialty packages		2		—		2		(1	)		—			—			(1	)		1			—			—		1
Surety and executive risk		9		2		11		(17	)		—			—			(17	)		(8	)		—			2		(7	)
Machinery and equipment		—		—		—		—			—			—			—			—			—			—		—
Total commercial lines		95		12		106		(56	)		(3	)		(1	)		(60	)		39			(4	)		10		46
Personal auto		1		—		1		—			—			—			—			1			—			—		—
Homeowners		15		—		15		(5	)		3			—			(3	)		10			3			—		12
Other personal		1		—		1		(1	)		—			—			(1	)		—			—			—		—
Total personal lines		17		—		17		(6	)		3			—			(3	)		10			3			—		12
Total property casualty group	$	111	$	12	$	122	$	(62	)	$	—		$	(1	)	$	(63	)	$	49		$	(1	)	$	10	$	58
Net loss and loss expense incurred at September 30, 2009
Commercial casualty	$	157	$	83	$	240	$	55		$	(24	)	$	10		$	41		$	212		$	(24	)	$	93	$	282
Commercial property		215		33		249		(19	)		12			—			(7	)		196			12			33		241
Commercial auto		166		28		194		(9	)		2			—			(6	)		157			2			28		187
Workers’ compensation		174		29		203		—			87			12			99			174			87			42		302
Specialty packages		69		12		82		(2	)		8			1			7			67			8			13		89
Surety and executive risk		25		5		30		16			2			(1	)		17			41			2			4		48
Machinery and equipment		8		1		9		1			—			—			—			9			—			1		11
Total commercial lines		813		192		1,007		42			89			23			152			855			88			214		1,158
Personal auto		151		21		173		(11	)		1			—			(10	)		140			1			21		163
Homeowners		202		26		229		14			17			2			33			216			17			29		261
Other personal		35		4		40		(12	)		(2	)		(1	)		(15	)		24			(2	)		3		26
Total personal lines		389		52		441		(9	)		16			2			8			380			16			53		450
Total property casualty group	$	1,202	$	244	$	1,448	$	33		$	105		$	24		$	160		$	1,235		$	105		$	268	$	1,608

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

2009 Third-Quarter Supplement 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		$	669		$	666		$	695		$	669		$	687		$	738		$	733		$	1,361		$	1,472		$	2,030		$	2,159			$	2,828
Agency new business written premiums			107			107			97			100			93			100			76			204			175			311			268				368
Ceded written premiums			(42	)		(40	)		(39	)		(41	)		(50	)		(37	)		(38	)		(79	)		(75	)		(122	)		(125	)			(165	)
Other written premiums			2			2			2			2			4			1			2			5			3			7			7				9
Written premium adjustment — statutory			(6	)		(12	)		23			(13	)		(7	)		(12	)		3			11			(9	)		5			(17	)			(30	)
Reported written premiums — statutory*		$	730		$	723		$	778		$	717		$	727		$	790		$	776		$	1,501		$	1,566		$	2,231		$	2,292			$	3,010
Unearned premium change			3			10			(46	)		30			24			(29	)		(25	)		(36	)		(54	)		(33	)		(30	)			—
Earned premiums		$	733		$	733		$	732		$	747		$	751		$	761		$	751		$	1,465		$	1,512		$	2,198		$	2,262			$	3,010
Year over year change %
Agency renewal written premiums			(2.7	)%		(9.8	)%		(5.2	)%		(5.1	)%		(6.1	)%		(3.0	)%		(3.7	)%		(7.6	)%		(3.4	)%		(6.0	)%		(4.3	)%			(4.5	)%
Agency new business written premiums			15.4			7.3			28.9			22.9			12.4			22.8			(6.3	)		16.6			8.3			16.0			9.8				13.1
Ceded written premiums			(14.6	)		7.1			4.6			(0.7	)		20.8			(4.6	)		(1.1	)		5.8			(2.9	)		(2.4	)		5.4				3.8
Other written premiums			(31.5	)		81.6			32.5			(50.6	)		(39.1	)		(74.6	)		(71.8	)		53.5			(73.1	)		7.9			(61.6	)			(59.3	)
Written premium adjustment — statutory			(20.3	)		(0.3	)		661.2			(48.0	)		(81.6	)		(900.0	)		(91.5	)		(220.8	)		(124.3	)		(126.5	)		161.5				(4.8	)
Reported written premiums — statutory*			0.5			(8.5	)		0.3			(1.0	)		(1.3	)		(2.5	)		(8.3	)		(4.2	)		(5.4	)		(2.7	)		(4.2	)			(3.4	)
Statutory combined ratio
Statutory combined ratio			96.9	%		116.6	%		105.1	%		100.2	%		102.8	%		101.5	%		97.2	%		110.8	%		99.4	%		106.2	%		100.5	%			100.4	%
Contribution from catastrophe losses			0.9			16.1			7.2			(2.1	)		8.4			14.9			5.7			11.6			10.3			8.1			9.7				6.8
Statutory combined ratio excluding catastrophe losses			96.0	%		100.5	%		97.9	%		102.3	%		94.4	%		86.6	%		91.5	%		99.2	%		89.1	%		98.1	%		90.8	%			93.6	%
Commission expense ratio			20.1	%		18.2	%		17.7	%		20.8	%		17.7	%		17.4	%		17.7	%		17.9	%		17.5	%		18.7	%		17.6	%			18.4	%
Other expense ratio			14.1			13.8			13.2			15.9			15.4			10.7			12.9			13.5			11.8			13.7			12.8				13.7
Statutory expense ratio			34.2	%		32.0	%		30.9	%		36.7	%		33.1	%		28.1	%		30.6	%		31.4	%		29.3	%		32.4	%		30.4	%			32.1	%
GAAP combined ratio
GAAP combined ratio			95.1	%		116.6	%		107.5	%		98.9	%		101.3	%		103.5	%		98.6	%		112.1	%		101.1	%		106.4	%		101.0	%			100.6	%
Contribution from catastrophe losses			0.9			16.1			7.2			(2.1	)		8.4			14.9			5.7			11.6			10.3			8.1			9.7				6.8
GAAP combined ratio excluding catastrophe losses			94.2	%		100.5	%		100.3	%		101.0	%		92.9	%		88.6	%		92.9	%		100.5	%		90.8	%		98.3	%		91.3	%			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 Third-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		$	489		$	488		$	557		$	514		$	502		$	552		$	588		$	1,045		$	1,140		$	1,535		$	1,642			$	2,156
Agency new business written premiums			76			79			76			83			77			87			66			155			153			231			229				312
Ceded written premiums			(32	)		(32	)		(31	)		(23	)		(46	)		(31	)		(32	)		(64	)		(63	)		(96	)		(109	)			(131	)
Other written premiums			2			1			1			(9	)		13			1			—			3			1			4			14				4
Written premium adjustment — statutory			(6	)		(12	)		23			(13	)		(8	)		(12	)		3			11			(9	)		4			(17	)			(30	)
Reported written premiums — statutory*		$	528		$	524		$	626		$	552		$	538		$	597		$	625		$	1,149		$	1,222		$	1,678		$	1,759			$	2,311
Unearned premium change			27			32			(69	)		21			44			(11	)		(51	)		(37	)		(61	)		(11	)		(16	)			5
Earned premiums		$	555		$	556		$	557		$	573		$	582		$	586		$	574		$	1,112		$	1,161		$	1,667		$	1,743			$	2,316
Year over year change %
Agency renewal written premiums			(2.5	)%		(11.6	)%		(5.2	)%		(5.9	)%		(7.7	)%		(2.9	)%		(4.0	)%		(8.3	)%		(3.5	)%		(6.5	)%		(4.8	)%			(5.1	)%
Agency new business written premiums			(0.4	)		(8.9	)		14.9			16.2			6.0			21.2			(8.3	)		1.4			6.4			0.8			6.3				8.8
Ceded written premiums			(29.2	)		3.2			0.2			(33.0	)		43.6			(1.6	)		2.8			1.7			0.6			(11.4	)		15.1				2.4
Other written premiums			(88.4	)		49.2		nm				(391.7	)		250.5			(73.4	)		(99.4	)		227.4			(89.2	)		(70.3	)		25.0				(66.5	)
Written premium adjustment — statutory			(18.8	)		4.2			666.7			(45.8	)		(81.6	)		(900.0	)		(91.5	)		(216.7	)		(124.3	)		(123.5	)		161.7				(1.6	)
Reported written premiums — statutory*			(1.8	)		(12.2	)		0.1			(1.9	)		(1.2	)		(2.7	)		(9.8	)		(5.9	)		(6.5	)		(4.7	)		(4.9	)			(4.2	)
Statutory combined ratio
Statutory combined ratio			94.9	%		112.0	%		99.0	%		99.0	%		97.3	%		97.5	%		93.3	%		105.4	%		95.5	%		101.8	%		95.9	%			96.6	%
Contribution from catastrophe losses			(1.2	)		10.2			2.5			(1.5	)		4.0			11.3			3.9			6.4			7.7			3.8			6.4				4.5
Statutory combined ratio excluding catastrophe losses			96.1	%		101.8	%		96.5	%		100.5	%		93.3	%		86.2	%		89.4	%		99.0	%		87.8	%		98.0	%		89.5	%			92.1	%
Commission expense ratio			20.3	%		18.1	%		16.4	%		20.8	%		18.1	%		16.9	%		16.5	%		17.2	%		16.7	%		18.2	%		17.1	%			18.0	%
Other expense ratio			15.3			14.4			12.8			15.7			15.4			10.9			13.2			13.5			12.1			14.0			13.1				13.7
Statutory expense ratio			35.6	%		32.5	%		29.2	%		36.5	%		33.5	%		27.8	%		29.7	%		30.7	%		28.8	%		32.2	%		30.2	%			31.7	%
GAAP combined ratio
GAAP combined ratio			92.4	%		110.9	%		102.2	%		98.1	%		94.9	%		99.9	%		95.0	%		106.6	%		97.4	%		101.9	%		96.6	%			97.0	%
Contribution from catastrophe losses			(1.2	)		10.2			2.5			(1.5	)		4.0			11.3			3.9			6.4			7.7			3.8			6.4				4.5
GAAP combined ratio excluding catastrophe losses			93.6	%		100.7	%		99.7	%		99.6	%		90.9	%		88.6	%		91.1	%		100.2	%		89.7	%		98.1	%		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 Third-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		$	177		$	176		$	137		$	156		$	185		$	186		$	146		$	313		$	332		$	490		$	517			$	672
Agency new business written premiums			21			19			14			11			11			10			8			34			19			55			30				42
Ceded written premiums			(9	)		(7	)		(7	)		(8	)		(13	)		(6	)		(6	)		(15	)		(12	)		(24	)		(26	)			(33	)
Other written premiums			1			1			1			—			1			1			2			2			2			3			4				4
Written premium adjustment — statutory			—			—			—			—			—			—			—			—			—			—			—				—
Reported written premiums — statutory*		$	190		$	191		$	145		$	158		$	184		$	191		$	150		$	334		$	341		$	524		$	525			$	685
Unearned premium change			(20	)		(19	)		26			13			(17	)		(17	)		27			9			10			(11	)		(7	)			4
Earned premiums		$	170		$	172		$	171		$	171		$	167		$	174		$	177		$	343		$	351		$	513		$	518			$	689
Year over year change %
Agency renewal written premiums			(4.7	)%		(5.3	)%		(6.0	)%		(2.3	)%		(1.6	)%		(3.3	)%		(2.8	)%		(5.6	)%		(3.1	)%		(5.3	)%		(2.5	)%			(2.5	)%
Agency new business written premiums			90.9			85.0			67.2			17.7			11.9			7.7			(0.5	)		76.9			3.9			82.0			6.7				9.5
Ceded written premiums			(35.9	)		20.2			23.1			7.0			61.4			(17.3	)		(17.2	)		21.6			(17.3	)		(8.5	)		11.0				10.1
Other written premiums			(30.4	)		128.2			(50.0	)		(64.9	)		(37.3	)		(76.2	)		(0.4	)		(7.6	)		(43.3	)		(16.0	)		(41.3	)			(45.4	)
Written premium adjustment — statutory			0.0			0.0			0.0			(100.0	)		(100.0	)		0.0			(100.0	)		0.0			(100.0	)		0.0			(100.0	)			(100.0	)
Reported written premiums — statutory*			3.2			(0.4	)		(3.5	)		(1.4	)		(4.0	)		(3.0	)		(2.0	)		(1.8	)		(2.6	)		(0.1	)		(3.1	)			(2.7	)
Statutory combined ratio
Statutory combined ratio			102.8	%		130.5	%		123.9	%		102.1	%		120.6	%		114.3	%		110.8	%		126.8	%		112.2	%		118.7	%		114.9	%			111.6	%
Contribution from catastrophe losses			7.9			35.4			22.6			(4.1	)		23.8			27.0			11.6			29.0			19.3			22.0			20.7				14.5
Statutory combined ratio excluding catastrophe losses			94.9	%		95.1	%		101.3	%		106.2	%		96.8	%		87.3	%		99.2	%		97.8	%		92.9	%		96.7	%		94.2	%			97.1	%
Commission expense ratio			19.1	%		18.0	%		22.5	%		21.2	%		16.4	%		18.6	%		22.3	%		20.0	%		20.2	%		19.6	%		18.9	%			19.5	%
Other expense ratio			10.4			11.7			12.9			15.0			14.0			10.3			11.8			12.2			11.0			11.6			12.0				12.7
Statutory expense ratio			29.5	%		29.7	%		35.4	%		36.2	%		30.4	%		28.9	%		34.1	%		32.2	%		31.2	%		31.2	%		30.9	%			32.2	%
GAAP combined ratio
GAAP combined ratio			102.3	%		133.2	%		120.7	%		100.0	%		122.5	%		115.3	%		110.1	%		126.9	%		112.7	%		118.7	%		115.9	%			111.9	%
Contribution from catastrophe losses			7.9			35.4			22.6			(4.1	)		23.8			27.0			11.6			29.0			19.3			22.0			20.7				14.5
GAAP combined ratio excluding catastrophe losses			94.4	%		97.8	%		98.1	%		104.1	%		98.7	%		88.3	%		98.5	%		97.9	%		93.4	%		96.7	%		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 Third-Quarter Supplement 20

The Cincinnati Life Insurance Company
Statutory Statements of Income

	For the Three Months Ended September 30,												For the Nine Months Ended September 30,
(Dollars in millions)	2009			2008			Change			% Change			2009			2008			Change			% Change
Net premiums written	$	109		$	42		$	67			157.2		$	228		$	129		$	99			76.9
Net investment income		32			30			2			7.3			93			88			5			5.2
Amortization of interest maintenance reserve		(2	)		(1	)		(1	)		(110.1	)		(5	)		(1	)		(4	)		(275.9	)
Commissions and expense allowances on reinsurance ceded		2			2			—		nm				5			6			(1	)		(11.4	)
Income from fees associated with Separate Accounts		—			—			—		nm				1			1			—		nm
Total revenues	$	141		$	73		$	68			92.8		$	322		$	223		$	99			44.3
Death benefits and matured endowments	$	14		$	13		$	1			4.9		$	42		$	34		$	8			24.5
Annuity benefits		6			8			(2	)		(29.7	)		22			22			—		nm
Disability benefits and benefits under accident and health contracts		—			1			(1	)		(29.5	)		2			2			—		nm
Surrender benefits and group conversions		4			5			(1	)		(26.8	)		15			17			(2	)		(13.3	)
Interest and adjustments on deposit-type contract funds		3			3			—		nm				8			9			(1	)		(6.0	)
Increase in aggregate reserves for life and accident and health contracts		97			25			72			295.3			183			77			106			138.6
Payments on supplementary contracts with life contingencies		—			—			—		nm				—			—			—			—
Total benefit expenses	$	124		$	55		$	69			125.4		$	272		$	161		$	111			68.5
Commissions	$	12		$	8		$	4			49.9		$	30		$	24		$	6			24.2
General insurance expenses and taxes		9			10			(1	)		(7.3	)		27			29			(2	)		(6.7	)
Increase in loading on deferred and uncollected premiums		(2	)		(1	)		(1	)		(126.9	)		(4	)		(3	)		(1	)		(38.0	)
Net transfers to or (from) Separate Accounts		(2	)		—			(2	)	nm				(4	)		—			(4	)	nm
Other deductions		—			—			—			—			—			—			—			—
Total operating expenses	$	17		$	17		$	—			2.0		$	49		$	50		$	(1	)		(2.1	)
Federal and foreign income taxes incurred		(1	)		9			(8	)	nm				(5	)		20			(25	)	nm
Net gain from operations before realized capital gains or (losses)	$	1		$	(7	)	$	8		nm			$	6		$	(8	)	$	14		nm
Net realized gains or (losses) net of capital gains tax		—			(25	)		25			99.5			(7	)		(40	)		33			81.3
Net income (loss) (statutory)	$	1		$	(33	)	$	32		nm			$	(1	)	$	(48	)	$	47			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.
*	Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of InsuranceCommissioners and filed with the appropriate regulatory bodies.

2009 Third-Quarter Supplement 21