8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT

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

Commission file number 0-4604

CINCINNATI FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Ohio	31-0746871
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
6200 S. Gilmore Road, Fairfield, Ohio	45014-5141
(Address of principal executive offices)	(Zip code)

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

Item 9. Regulation FD Disclosure. On September 25, 2003, Cincinnati Financial Corporation held an investor headquarters visit. Presentations used at the visit are furnished as Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3 hereto and are incorporated herein by reference. This report should not be deemed an admission as to the materiality of any information contained in the news release.

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.

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 thereunto duly authorized.

CINCINNATI FINANCIAL CORPORATION

/S/ Kenneth W. Stecher
Kenneth W. Stecher
Chief Financial Officer, Senior Vice
President, Secretary and Treasurer
(Principal Accounting Officer)
September 29, 2003

Exhibits:

Exhibit 99.1 Investor Headquarters Visit Part I
Exhibit 99.2 Investor Headquarters Visit Parts II and III
Exhibit 99.3 Investor Headquarters Visit Breakout Sessions

EX-99.1 3 l03256aexv99w1.htm EX-99.1

Exhibit 99.1

Cincinnati Financial Corporation 2003 Investor Headquarters Visit September 24-25, 2003

Nasdaq:CINF Today's presentations contain forward-looking statements that involve risks and uncertainties. Please refer to our various filings with the Securities and Exchange Commission for factors that could cause results to materially differ from those discussed. Reconciliations of non-GAAP and non-statutory data are available at www.cinfin.com

Structured for Strength and Stability 19th largest publicly traded insurer based on revenues 30th largest property casualty insurer by premium volume Market capitalization of $6.6 billion (9/23/03) Well capitalized and highly rated Strong growth and underwriting profit in 2002 and first half of 2003

Outperform in 2003 and Beyond John J. Schiff, Jr., CPCU Chairman & Chief Executive Officer

Your Day with Us Insurance Operations Inside Cincinnati - In-Depth Look at Our Business Scott Insurance Agency and Cincinnati Field Team Financial Strength and Stability

Scott Insurance Agency Walker Sydnor, CPCU, president, and Patty Pollard, ACSR, CPIW, AU, manager - personal lines, of Scott Insurance Agency, Lynchburg, Virginia Cincinnati field team Ron Klimkowski, AIC Dan Gray Chris Rittenhouse Linda Hutchinson, APA, CIC Pat Draney, AIC Kristine Roach

Special Guests William F. Bahl, CFA, director W. Rodney McMullen, director Frank J. Schultheis, director Robert B. Morgan, former president and chief executive officer George J. Berry, Jr., Nasdaq representative Officers from a variety of departments

Outperform in 2003 and Beyond Generate steady growth and above-average profitability by leveraging regional franchise and proven agency-centered business strategy Obtain strong investment income growth and capital appreciation through equity-focused investment strategy Maintain financial strength

Enhancing Return to Shareholders Philosophy leads to long-term shareholder value 11.3% 10-year compound growth in paid dividends 12.4% increase in indicated annualized payout in February 2003 43rd consecutive increase 100-share investment in 1950 now 194,667 shares without cash dividend reinvestment

Focus on Shareholder Value Operating Income Dividends Paid Net Income 1997* 1.49 0.5333 1.77 1998 1.16 0.5967 1.41 1999 1.52 0.6633 1.52 2000 0.9 0.74 0.89 2001 1.29 0.82 1.19 2002 1.84 0.8775 1.46 1H 2002 0.74 0.67 0.4325 1H 2003 1.11 0.87 0.4725 See the Operations section of the Investors page of www.cinfin.com for non-GAAP and non-statutory reconciliation information. Per diluted share

Outperform in 2003 and Beyond Insurance Operations

Leverage Regional Franchise and Proven Agency-centered Business Strategy J.F. Scherer Senior Vice President Sales & Marketing

Agency Centered "A company sponsored and principally owned by local agents, presently operating under the American Agency System and committed to operating under the same system for many years to come." - -1950 Prospectus

At Home on Main Street Regional carrier Main Street property casualty business 950 local independent insurance agencies in 31 states Market for about 75% of agency's typical risks Approximately 90% of property casualty policies less than $10,000 premium Agents in Main Street markets place value on claims service, market stability, access to executives Cincinnati was No. 1 or No. 2 carrier in 71% of agency locations in 2002

Market for 75% of Agency's Typical Risks Life Homeowner Other Other Liability Commercial Multi-Peril Commercial Auto Workers' Comp Personal Auto 0.04 0.09 0.1 0.12 0.25 0.16 0.12 0.16 Percent of 2002 consolidated net earned premiums Commercial Lines 69% Property Casualty Personal Lines 27% $2.5 Billion in 2002 Net Earned Premium

Serving Select Group 950 Independent Agencies in 31 States Headquarters (no branches) Actively Marketing

Our Chosen Partners - The Independent Agent Dollars in millions Industry Industry Cincinnati Cincinnati Industry Aggregate Revenue Industry Aggregate Revenue Cincinnati Aggregate Premium Cincinnati Aggregate Premium Agency Size (Revenue) # % Total # % Total $ % Total $ % Total $10.0+ 200 1 15 2 4,000 12 102 4 $2.5-$10.0 2,500 6 163 17 12,500 38 755 31 $1.25-$2.5 3,500 9 205 21 6,125 18 636 26 $0.5-$1.25 8,000 20 365 38 6,000 18 706 29 $0.15-$0.5 15,000 38 205 21 3,750 11 245 10 Under 150k 10,000 26 7 1 1,000 3 5 - 39,200 100 952 100 33,375 100 2,449 100 Source: Reagan & Associates, Best Practices Study

Agent and Consumer Satisfaction Independent consumer surveys Cincinnati among top insurers for auto and homeowners claims service Agents' top choice for commercial auto Pricing, accessibility and claims payment methods "unsurpassable" (Crittenden's Property Casualty Ratings, June 2, 2003) Online Consumer Information Source Shows Cincinnati's exceptionally low complaint ratios (www.naic.org)

1998 1999 2000 2001 2002 1H 2003 Cincinnati 0.058 0.079 0.152 0.13 0.14 0.133 Estimated Industry (A.M. Best) 0.018 0.019 0.044 0.081 0.157 0.127 Opportunities for Continued Steady Property Casualty Premium Growth Room to grow in marketplace Continue to subdivide territories to improve service Increase penetration of each agency's business Selectively appoint new agencies See the Operations section of the Investors page of www.cinfin.com for non-GAAP and non-statutory reconciliation information. Net Written Premium Growth

Potential in the Marketplace 2002 Statutory Direct Written Premiums (dollars in millions) Cincinnati Total P/C Industry Cincinnati Market Penetration Cincinnati Total P/C Industry Cincinnati Market Penetration Ohio $651 $16,882 3.9% Illinois 280 19,058 1.5 Indiana 221 8,802 2.5 Pennsylvania 156 16,807 0.9 Michigan 157 14,840 1.1 Georgia 161 10,764 1.5 All Active States $2,894 $247,359 1.2

Improving Service Subdividing Territories; Adding Local Staff 83 territories at year-end 2002 from 70 at year-end 1998 Four new territories planned for 2003 1,059 local marketing, claims and other staff from 860 five years ago 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 6-mos 2003 Premiums Written 14.958 14.569 14.729 15.03 14.494 14.765 15.886 17.335 19.975 21.565 Territories 51 56 60 63 68 70 70 74 76 83 * Dollars in millions Commercial Premiums/Territory

2003 New Territories North Carolina First Quarter Northern Virginia Second Quarter Tiffin, Ohio Third Quarter Greater Atlanta Fourth Quarter On the Drawing Board On the Drawing Board Milwaukee Chicago St. Louis Upstate New York

Successful Agencies Agency Direct Written Premiums (Dollars in millions) 2001 2002 Agency Relationships 960 952 Cincinnati $2,135 $2,449 Total Agency P/C $11,585 $13,263 Cincinnati Agency Penetration 18.4% 18.0%

Potential in OUR OWN Marketplace 2002 Statutory Direct Written Premiums (dollars in millions) Cincinnati Total Agency P/C Cincinnati Penetration Agencies appointed 1992 and prior 671 $1,954 $7,818 25.0% Agencies appointed 1993 to present* 281 495 5,445 9.1 * In 2002, agencies appointed before 1993 represented 70.5% of our agency relationships; 58.9% of total agency p/c premiums; and 79.8% of Cincinnati's total direct written premium.

Selectively Appoint New Agencies Tap growth opportunities within existing states Familiar turf Penetrate all centers of influence Perform extensive due diligence Establish targets for appointment 2003: 35 to 40 agencies 2004 and beyond: 150+ agencies

Further Improvement Balancing Growth with Profitability Leverage local knowledge/underwriting Show strategy in action Personal lines Commercial lines Claims Life insurance 1998 1999 2000 2001 2002 1H 2003 Estimated Industry (A.M. Best) 1.056 1.078 1.101 1.155 1.072 0.999 Cincinnati 1.042 1.004 1.099 1.036 0.996 0.957 Industry--excluding catastrophes 1.05 1.043 1.055 1.082 1.043 Cincinnati--excluding catastrophes 0.981 0.979 1.072 1.005 0.96 0.919 See the Operations section of the Investors page of www.cinfin.com for non-GAAP and non-statutory reconciliation information. Post-dividend statutory combined ratio

As True Today as It Was Yesterday... and Will Be Tomorrow "Agents made these results possible. It is in the spirit of partnership that the future progress of The Cincinnati Insurance Companies rests." -Harry M. Turner First President of The Cincinnati Insurance Companies June 1963

Leverage Regional Franchise and Proven Agency-centered Business Strategy J.F. Scherer Senior Vice President Sales & Marketing

The Opportunity in Personal Lines Larry Plum, CPCU President The Cincinnati Casualty Company

Personal Lines at Cincinnati $364 million in net earned premiums in the first half of 2003 28% of property casualty premiums 11.4% growth in first half 2003 25 of 31 states; 663 of 950 agencies Six states account for 73% of premium Alabama, Georgia, Illinois, Indiana, Michigan, Ohio

The Opportunity in Personal Lines Personal lines enhances the value of the Cincinnati agency contract Our products add value to what the agents can offer Helps agents strengthen ties with decision-makers in their communities Allows agents the chance to grow their agency volume and commission income

Profitability Improvement Opportunities 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 Personal Lines Combined Ratio 1.049 1.198 1.045 0.992 0.995 1.152 Combined Ratio Excluding Catastrophes 0.989 1.053 1.051 0.906 1.008 0.974 Based on pro forma data. See the Operations section of the Investors page of www.cinfin.com for reconciliation information. Post-dividend statutory combined ratio

Sustain Success in Personal Auto Targeting quarterly loss and loss expense ratio below 70% during 2004 Benefits seen from re-underwriting program Strengthening standards Confirming premium volume commitments Looking at renewals closer 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 Loss and LAE Ratio 0.681 0.841 0.725 0.519 0.724 0.726

Focus on Homeowner Targeting quarterly loss and loss expense ratio in 72% to 74% range in approximately 24 months Improve profitability through: Rate changes Insurance-to-value Changes in policy terms and conditions - water damage, others Re-underwriting programs 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 Loss & LAE Ratio 0.797 1.378 0.885 0.862 0.631 1.339 Loss & LAE Ratio Excluding Catastrophes 0.621 0.96 0.92 0.616 0.676 0.851 Based on pro forma data. See the Operations section of the Investors page of www.cinfin.com for reconciliation information.

Homeowner Rate Changes 2001 2001 2002 2002 2003 2003 Month % Month % Month % Ohio January 0.3 March 5.9 January 7.8 Ohio November 10.2 -- -- Sept 1.6 Indiana March (0.7) Feb 11.6 May 21.0 Illinois Nov 4.7 July 17.4 July 17.2

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 Ohio 0.274 0.266 0.269 0.282 0.46 0.46 0.46 0.37 Indiana 0.129 0.287 0.366 0.358 0.341 0.376 0.376 0.376 Illinois 0.232 0.19 0.394 0.41 0.441 0.441 0.441 0.398 Homeowner Rate Impact on Renewal Business

Personal Lines Focus One-year homeowner policies Recruiting and training Shortening filing times Understanding our market Technology

Diamond Personal Lines Processing System Integrated processing system for six lines of business Offers agents choice and control Increases flexibility Agency bill vs. direct bill Print in headquarters or agent's office State-by-state rollout Kansas - up and running Indiana, Michigan and Ohio - 2004 Remainder of states to follow

"Success in business requires training and discipline and hard work. But if you're not frightened by these things, the opportunities are just as great today as they ever were." David Rockefeller

Profitability, Growth, Service Tom Joseph, CPCU Senior Vice President Commercial Lines

Commercial Lines Where are we? How did we get here? How will we succeed in the future?

The Cincinnati Difference Frontline agency underwriting Representatives living in the communities we serve, making underwriting decisions on the spot Personal relationships between underwriters, field marketing representatives, agents and policyholders are our top priority Strong emphasis on and commitment to underwriting education for associates and agents

Where Are We? 1999 2000 2001 2002 1H 2003 Commercial lines statutory combined ratio 1.012 1.144 1.007 0.968 0.911 See the Operations section of the Investors page of www.cinfin.com for non-GAAP and non-statutory reconciliation information.

Where Are We? 2000 2001 2002 1H 2003 Commercial multi-peril 0.754 0.771 0.695 0.681 Commercial auto 1.204 0.857 0.675 0.605 Other liability 0.818 0.589 0.778 0.561 Workers' compensation 0.739 0.807 0.8 0.794

How Did We Get Here? Net earned premium growth 2002: 19.1% 1H 2003: 13.2% Re-underwriting campaign Risk selection guide Senior officer approval of higher limits Stricter pre-inspection standards Pre-renewal lists Agency reviews Field claims risk reports

How Did We Get Here? Product management group Rate increases (base rates and package factors) Product monitoring File auditing Joint underwriting task forces Special programs Contractors'

How Will We Succeed in the Future? Resist trying to be all things to all customers Focus on what has made us historically profitable Strong underwriting Focus on relationships Balance growth and profitability

How Will We Succeed in the Future? Respond appropriately to the changing marketplace Underwriters reacting carefully Protect good, profitable business Seek renewal increases where appropriate and when available Write business at a rate that maintains profitability

How Will We Succeed in the Future? Proceed with technology and automation initiatives Make it even easier for agents to place good business with Cincinnati Monitor competitor pricing and products Make changes where it makes sense for us Round out existing accounts with additional coverages Protects policyholders from further risk Increases profitability of each piece of business Promote underwriter visits to agencies Personal relationships helps grow our business

Focus on Top-Notch Service Contribute to growth by providing outstanding customer service Appropriate staffing Five underwriting classes annually Rating classes doubled Technology and automation initiatives WinCPP - currently being deployed Imaging and automated workflow - project launched e-CLAS - future processing system

Above and Beyond Profitable Niche Commercial Markets Machinery & Equipment Specialties Loss and loss expense ratio typically below 30% Premium volume has doubled over the last five years with the introduction of Equipment Breakdown Coverage Bond & Executive Risk Specializes in surety and fidelity coverage Consistently profitable

High-Quality Reinsurers Property catastrophe - retain first $25 million reinsured for 57% of next $20 million, 95% of losses $45 million to $400 million Property working - retain first $2 million reinsured for 60% of next $3 million, 100% of losses $5 million to $25 million Casualty working - retain first $2 million reinsured for 40% of next $2 million, 100% of losses $4 million to $25 million Facultative reinsurance

Profitability, Growth, Service Tom Joseph, CPCU Senior Vice President Commercial Lines

Claims Operations James E. Benoski Chief Insurance Officer & Senior Vice President Headquarters Claims

Local Authority, Personal Touch, Prompt Service 3 to 30 representatives 31 to 60 representatives 61 to 75 representatives > 75 representatives Not actively marketed

Experience Counts Industry Experience Cincinnati Experience Field Claims Representatives 13 9 Field Claims Managers 21 18 Headquarters Supervisors 21 18 Headquarters Managers 33 29

Loss Issues Industry-wide severity and frequency concerns Asbestos and environmental Survival ratio at 12.3 years on gross basis Represents less than 1.1% of outstanding claims Mold 228 pending claims with reserves of approximately $1.5 million Uninsured/underinsured motorists IBNR at $17.5 million after net $8.3 million in losses in 2003

Frequency and Severity 4Q1995 1Q1996 2Q1996 3Q1996 4Q1996 1Q1997 2Q1997 3Q1997 4Q1997 1Q1998 2Q1998 3Q1998 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 Severity Severity without ALAE (Incurred Loss w/o ALAE / Claim Count) 2727 2880 2879 2898 2964 2924 2875 2830 2788 2746 3018 3138 2971 3033 2864 2895 3122 3201 3274 3429 3576 3750 4026 4188 4313 4367 4503 4567 4650 4635 Frequency Frequency (Claim Count / Earned Premium x 1,000) 0.2119 0.2073 0.2127 0.2145 0.2102 0.2061 0.2011 0.1987 0.1969 0.1949 0.195 0.1965 0.2183 0.2213 0.2195 0.2136 0.1905 0.1835 0.1794 0.1797 0.1767 0.1783 0.1745 0.1678 0.1629 0.1543 0.1494 0.1409 0.1333 0.1278

Large Losses 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 Case reserve increases > $250,000 0.071 0.061 0.05 0.055 0.039 0.05 New claims $250,000 to $1 million 0.072 0.054 0.069 0.07 0.051 0.057 New claims > $1 million 0.025 0.064 0.044 0.041 0.034 0.04 <$250,00 0.391 0.438 0.414 0.33 0.394 0.366

Catastrophes 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 Loss Ratio 0.025 0.081 0.008 0.033 0.004 0.072

Initiatives Subrogation and salvage Auto glass program Auto physical damage audit Managed care for workers' compensation Annuities Automation

Subrogation and Salvage Recoveries 1998 1999 2000 2001 2002 31.199 32.476 36.429 40.34 42.111 In millions

Auto Glass Program Current Future Discount* 45% 58% Agent participation 30% 95% Repair** 20% 30% Yearly average invoices 6,000 20,000 Yearly average savings $660,000 $2.4 million * Recently renegotiated discounts ** Repairs save more than $300; insured's deductible is waived

Auto Estimate Repricing Through June 2003 Original estimates $25.9 million Post audit $24.1 million Savings $1.8 million Vendor fees $285,454 Net savings $1.5 million Average net savings per estimate $194 Overall saved 7%

Workers' Compensation Medical Bill Audit (Dollars in millions) (Dollars in millions) (Dollars in millions) (Dollars in millions) Increase from Prior Year Gross Charges Gross Savings Fees Net Savings Increase from Prior Year 2002 $89.5 $21.8 $2.9 $18.9 14.3% 2001 81.4 19.1 2.6 16.5 22.9% 2000 65.7 15.6 2.1 13.5 16.9%

Structured Settlements of Property Casualty Claims Annuity Premium Volume 1998 1999 2000 2001 2002 1H 2003 17.022 11.023 24.185 25.636 23.87 9.773 In millions

Automation Claims Management System Electronic claims processing system Rollout to begin in October 2003 Enhances efficiency and effectiveness of field claims Single point of entry Reduces time associates spend on paperwork Lays groundwork for move to paperless processing Reduces opportunity for fraud Tangible and intangible benefits for policyholders, agents and company

Claims Operations James E. Benoski Chief Insurance Officer & Senior Vice President Headquarters Claims

Life Insurance - Helping to Attract and Retain High-quality Agents David H. Popplewell, FALU, LLIF President and COO The Cincinnati Life Insurance Company

Why Sell Life? Diversify revenue stream for property casualty agencies Expand product portfolio to meet needs of agency clients Enhance client relationships Improve overall persistency Add stable business that reduces impact of property casualty cycles Increase Cincinnati revenues and income

Agency Relationships Our property casualty agencies produce 75% of life written premiums 300 independent life agencies produce 25% of life written premiums

Steadily Rising Agency Penetration 1998 1999 2000 2001 2002 At June 30, 2003 $10,000 - $50,000 265 288 409 393 626 428 $50,000 - $100,000 25 41 73 92 283 144 $100,000 - $200,000 12 19 22 52 189 74 > $200,000 1 3 6 20 106 32 Number of agencies

Cincinnati's LifeHorizons Product Portfolio Term Whole Life Universal Life Worksite Life Disability Income Long-term Care Annuity

Applications Submitted (All Lines) 1998 1999 2000 2001 2002 At June 30, 2003 East 32351 42180 45615 41432 48004 23895 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9

Total In-force Policy Count 1998 1999 2000 2001 2002 At June 30, 2003 East 264207 273724 285667 296587 313747 321584 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9

Life Policy Face Amounts In Force 1998 1999 2000 2001 2002 At June 30, 2003 13060 17900 23525 27534 32486 35624 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Excludes Annuities, Accident and Health Business In millions

Net Earned Premium (GAAP) 1998 1999 2000 2001 2002 2003 First six months 41.58 44.22 70.095839 74.67 79.35 80.73 45.83 In millions First six months

Expenses as a Percent of Premium (Dollars in millions) 1999 2000 2001 2002 1H 2003 Adjusted Gross Written Premiums $117.8 $137.3 $122.0 $210.4 $95.3 Insurance Expense $18.5 $20.3 $25.1 $26.5 $12.3 Adjusted Expense Ratio 15.7% 14.8% 20.6% 12.6% 12.9% See the Operations section of the Investors page of www.cinfin.com for non-GAAP and non-statutory reconciliation information.

Capital & Surplus (GAAP) 1998 1999 2000 2001 2002 At June 30, 2003 524.972856 463.18 524.65 551.85 537.49 580.28 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 In millions

Cincinnati Life Assets (GAAP, Including Separate Accounts) 1998 1999 2000 2001 2002 At June 30, 2003 East 1210.182818 1447.13 1620.93 1760.81 1987.96 2220.87 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 In millions

Agency Support Agent education and training Special financial assistance and incentives Life agent development Lead generation Life sales system One-on-one headquarters service On-site sales assistance

Life Insurance - Helping to Attract and Retain High-quality Agents David H. Popplewell, FALU, LLIF President and COO The Cincinnati Life Insurance Company

The 10 O'clock Meeting Jody Wainscott Vice President Research & Development

Communication ... Communication ... Communication Ensuring the flow of agent- and market-focused information Attended by CEO and officers with responsibility for sales, production and operations, including support functions like claims, rate and product filings, research and development Share information about agents, competition, trends, loss activity, service

EX-99.1

EX-99.1

EX-99.2

Exhibit 99.2

The Agent and Field Team Relationship Scott Insurance Agency Lynchburg, Virginia

Scott Insurance Agency Virginia's oldest and largest employee-owned provider of insurance, benefits services and financial management Seven locations in three states: Virginia, North Carolina and Tennessee Captive insurance operations in Bermuda and Grand Cayman Corporate offices in Lynchburg, Virginia Founded in 1864 $165 million in annual premium Represents approximately 32 different property casualty insurance carriers

Walker P. Sydnor, Jr., CPCU President of Scott Insurance Agency Native of Lynchburg, Virginia Joined Scott in 1976 Prior experience with INA and St. Paul Education: Hampden-Sydney College Director of Centra Health (hospital system); Trustee of Lynchburg College and Virginia Foundation of Independent Colleges

Patty Pollard, ACSR, CPIW, AU Account executive and personal lines and small commercial supervisor with Scott Insurance Agency Native of Boones Mill, Virginia Joined Scott in 1984 Prior experience with Allstate Education: Central Virginia Community College and multiple professional accreditations Pursuing CPCU designation; board member of Churches for Urban Ministries; member of local church's missions team

Ron Klimkowski, AIC Regional director, Sales & Marketing Works out of home in Roanoke, Virginia Joined The Cincinnati Insurance Companies in 1996 Prior experience with State Farm claims department Education: Ohio University Pursuing CIC designation

Dan Gray Machinery and equipment specialist Works out of home in Christianburg, Virginia Joined The Cincinnati Insurance Companies in 1980 Prior experience with Continental Insurance Education: New River Community College and Virginia Western Community College Member of the National Board of Boiler and Pressure Vessel Inspectors Commission and the Virginia Boiler and Pressure Vessel Inspectors Association; certified by the State of Virginia to inspect boilers and pressure vessels

Chris Rittenhouse Bond agent for Virginia Works out of home in Moseley, Virginia Joined The Cincinnati Insurance Companies in 1995 Prior experience with USF&G Education: American International College Member of the Surety Association of Virginia

Linda Hutchinson, APA, CIC Field audit specialist Works out of home in Forest, Virginia Joined The Cincinnati Insurance Companies in 1995 Prior experience with Chubb Insurance, Allstate Insurance and agencies in New Jersey and Virginia Education: Liberty University

Pat Draney, AIC Senior claims representative Works out of home in Forest, Virginia Joined The Cincinnati Insurance Companies in 1991 Education: Radford University

Kristine Roach Workers' compensation claims specialist Works out of home in Chester, Virginia Joined The Cincinnati Insurance Companies in 2000 Prior experience with AIG claims Education: Virginia Commonwealth University

The Agent and Field Team Relationship Scott Insurance Agency Lynchburg, Virginia

Equity-focused Investment Strategy Ken Miller Vice President Investments

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

Investment Portfolio - Equity-focused $5.981 billion in unrealized appreciation $315 million in net new invested assets in first half of 2003 Focus on equity-linked securities and high- quality fixed income with intermediate maturities Common Stocks Convertibles Municipal Bonds Investment-Grade Corporate Bonds High-Yield Corporate Bonds 0.35 0.07 0.19 0.28 0.11 Common Stocks Convertible Securities Municipal Bonds Investment-Grade Corporate Bonds High-Yield Corporate Bonds 0.65 0.04 0.1 0.15 0.06 Book Value: $5.841 billion Market Value: $11.822 billion At June 30, 2003 High-Yield Bonds Municipal Bonds Convertible Securities

Investment Philosophy: Common Stocks Focus on equities With the ability and commitment to grow earnings and dividends Buy companies that have Strong and proven management teams Clean balance sheets Understandable product Favorable outlook Purchase at reasonable levels (value) Invest long term

Top 13 Common Stock Holdings At June 30, 2003 Dollars in millions

Top 13 Common Stock Holdings At June 30, 2003 Dollars in millions

Industry Focus = Advantage In-depth industry insight, ability to assess strategy Focus on local companies, relationships with management Banking Fifth Third, National City, PNC, First Merit, Sky Financial, US Bancorp Pharmaceuticals Wyeth, Merck Energy/utility ExxonMobil, Piedmont Natural Gas

Fifth Third (Nasdaq:FITB) 17.7% compound growth in earnings per share over the past 10 years Delivered a 10-year compound annual dividend growth rate of 19% Outperformed the Standard & Poor's 500 21-fold over a 20-year period Has grown one share of stock to nearly 77 shares due to 10 stock splits since 1980 Meets investment criteria $1.00 per share price change = 29 cents on CINF book value per share

Equity Portfolio versus S&P 500 Index Rate of total return Five Years 12/31/97-12/31/02 Last Twelve Months 6/30/02-6/30/03

Investment Philosophy: Bonds Focus on cash-flow yield Compounding interest on cash flows Diversity of holdings Taxable bonds Investment-grade (agency/corporate) High-yield Tax-exempt Municipal bonds

Refined Focus: Portfolio Quality Cautious approach to high-yield Purchasing agency paper Increased focus on municipal bonds Predominantly insured paper at 6/30/02 at 12/31/02 at 6/30/03 Not rated 0.1 0.08 0.06 BB or lower 0.25 0.21 0.18 BBB 0.29 0.3 0.27 A 0.12 0.15 0.15 AA 0.07 0.07 0.07 AAA 0.17 0.19 0.27

Refined Focus: Intermediate Durations/Maturities 4.79 average duration compared with 4.54 average duration a year ago 6.82% average coupon versus 7.55% a year ago 10.29 years average maturity compared with 10.35 years a year ago At June 30, 2003

Investment Philosophy: Convertible Securities Hybrid security with fixed income and equity characteristics Equity-like returns with bond-like risks Stable income stream Potential for capital appreciation associated with underlying common stock Downside protection Favorable risk-based capital treatment

1998 1999 2000 2001 2002 2003 Investment Income 368 387 415 421 445 At June 30 218 230 Focus on Compounding of Cash Flows Over the Long-term Investment income provides primary source of profits 2002 dividend increases from 28 of 46 stocks = $12 million in investment income First-half 2003 dividend increases from 14 of 47 = $11 million in annualized investment income Surplus contributes to financial strength Drives book value growth Based on pro forma data. See www.cinfin.com, Investors, Operations for reconciliation information. Investment Income (in millions)

Unique Investment Style Don't chase trends Holding company structure Compounding of cash flows and increasing dividends Patient and true to our principles Balance sheet strength and stability Income from dividends and capital gains drops to bottom line

CinFin Capital Management Provides investment management services to clients with minimum accounts of $500,000 Customizes portfolios based on each investor's needs and appetite for risk Bases service fees on assets under management Builds strong relationships with clients and invests for the long term

CinFin's Growth 6/30/2000 6/30/2001 6/30/2002 6/30/2003 Total Under Management 493 584 677 739 Number of Accounts 24 30 35 48 In millions

Cincinnati Financial Corporation

Maintain Financial Strength, Generate Long-term Shareholder Value Ken Stecher Chief Financial Officer

Financial Strength Only 1.9% of property casualty insurers rated A++ by A.M. Best Only 9.5% of life insurers rated A+ or above by A.M. Best

Balance Sheet and Risk Management High-quality investment portfolio Surplus ratio of 1.12-to-1 vs. industry average 1.30-to-1 (12/31/02) Loss reserve adequacy Low-risk reinsurance recoverables Strong cash flow and liquidity Modest indebtedness of $603 million or 10.8% of shareholders' equity Unchanged from prior year Effective oversight

Total Reserve Balance Objective: Modestly Redundant Reserves 1998 1999 2000 2001 2002 High 1881 1967 2193 2267 2492 Low 1761 1844 2039 2428 2674 Actual 1840 1932 2182 2352 2608 Property Casualty In millions

Annual Changes in Accident-year Loss Reserves (GAAP) 1990 1991 12 24 36 48 60 72 84 96 108 120 2000 -23.678 34.805 -5.914 -15.459 5.113 -6.115 -5.667 -3.982 -4.272 5.443 2001 0 17.222 12.774 -36.733 -1.914 -15.383 -7.087 -12.276 -7.356 -7.143 -4.213 2002 0 0 -9.773 -4.986 -9.627 -21.793 -6.004 -9.331 -14.81 -1.016 1.553 30.52 Calendar Year In millions

Accident-year vs. Calendar-year Loss and LAE Ratios 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Cincinnati Accident Year 0.64 0.65 0.71 0.67 0.75 0.72 0.79 0.74 0.68 Industry Accident Year 0.73 0.69 0.71 0.68 0.73 0.75 0.76 0.77 0.68 Cincinnati Calendar Year 0.69 0.66 0.7 0.63 0.69 0.68 0.77 0.71 0.67 Source: JP Morgan "U.S. P&C Loss Reserves," Sept. 5, 2003

Highly Rated Reinsurers Reinsurers highly rated by A.M. Best American Re A+ (Superior) Employers Re A (Excellent) Swiss Re A++ (Superior) Life reinsurance pool includes Employers Re, ING and Swiss Re Rated A (excellent) and above Account for more than 90% of life reinsurance recoverables

Statutory Property Casualty Reinsurance Recoverables to Policyholder Surplus 1998 1999 2000 2001 2002 At June 30, 2003 Cincinnati 0.056 0.066 0.075 0.214 0.253 0.238 Industry Average 1.334 1.43 1.562 1.997 2.165 Data from Annual Statement Schedule F

Statutory Property Casualty Reinsurance Recoverables 1998 1999 2000 2001 2002 At June 30, 2003 Working Treaties 128.895 148.289 188.097 188.386 211.386 221.988 USAIG 25.887 25.388 32.048 329.757 347.58 336.903 Life 14.1 12.4 9.9 10.6 12.3 89.8 Mandatory Pools 2.133 1.9 1.656 2.342 2.689 3.118 Other 10.998 11.522 14.767 22.654 29.45 28.741 Other 13.131 13.422 16.423 24.996 32.139 31.859 Data from Annual Statement Schedule F In millions

Strong Cash Flow and Liquidity 1998 1999 2000 2001 2002 2003 Operating Cash Flow as of June 30 305 424 Operating Cash Flow 274 397 358 543 362 BOLI 300 In millions Operating Cash Flow as of June 30

Effective Oversight Corporate governance Doing the right things ... honesty, accountability, ethics Deliberate process to assure compliance Independent agents / independent directors Internal controls Well-defined workflows Experienced management oversight

Outperform in 2003 and Beyond Generate steady growth and above-average profitability by leveraging regional franchise and proven agency-centered business strategy Obtain strong investment income growth and capital appreciation through equity-focused investment strategy Maintain financial strength

Leveraging Low-cost Structure to Achieve Performance Targets 1998 1999 2000 2001 2002 1H 2003 Cincinnati 1.042 1.004 1.099 1.036 0.996 0.957 Industry (A.M. Best) 1.056 1.078 1.101 1.155 1.072 0.999 Cincinnati--excluding catastrophes 0.981 0.979 1.072 1.005 0.96 0.919 Industry--excluding catastrophes (A.M. Best) 1.05 1.043 1.055 1.082 1.043 Post-dividend statutory expense ratio Statutory combined ratio Based on pro forma data. See the Operations section of the Investors page of www.cinfin.com for reconciliation information. 1998 1999 2000 2001 2002 1H 2003 Cincinnati Total Expense Ratio 0.295 0.288 0.274 0.267 0.267 0.257 Cincinnati Commission Expenses 0.176 0.174 0.169 0.165 0.166 0.167 Industry Commission Expenses (A.M. Best) 0.112 0.115 0.11 0.108 0.109 Cincinnati Non-Commission Expenses 0.119 0.114 0.105 0.102 0.101 0.09 Industry Non-Commission Expenses 0.164 0.163 0.165 0.158 0.157 Industry Total Expense Ratio 0.276 0.278 0.275 0.266 0.266

Low-cost Structure Rewards Agents 1998 1999 2000 2001 2002 1H 2003 Cincinnati Commission Expenses 0.176 0.174 0.169 0.165 0.166 0.167 Industry Commission Expenses 0.112 0.115 0.11 0.108 0.109 Cincinnati Non-Commission Expenses 0.119 0.114 0.105 0.102 0.1 0.09 Based on pro forma data. See the Operations section of the Investors page of www.cinfin.com for reconciliation information. Post-dividend statutory non-commission expense ratio Post-dividend statutory commission expense ratio 1998 1999 2000 2001 2002 1H 2003 Cincinnati Commission Expenses 0.176 0.174 0.169 0.165 0.167 0.167 Industry Commission Expenses (A.M. Best) 0.112 0.115 0.11 0.108 0.109 Cincinnati Non-Commission Expenses 0.119 0.114 0.105 0.102 0.101 0.09 Industry Non-Commission Expenses 0.164 0.163 0.165 0.158 0.157 Cincinnati Total Expense Ratio 0.295 0.288 0.274 0.267 0.267 0.257 Industry Total Expense Ratio 0.276 0.278 0.275 0.266 0.266

A Look Ahead - Our View Outperform in 2003 10% to 15% written premium growth 96.8% GAAP combined ratio 3.5% to 4.5% investment income growth And beyond Sustain steady growth Further improve combined ratio Accelerate investment income growth Bring results to bottom line Equity portfolio performance ahead of S&P 500 - resumption of book value growth

Focus on Shareholder Value - Operating Income Doubled Between 2000 and 2002 Operating Income Dividends Paid Net Income 1997* 1.49 0.5333 1.77 1998 1.16 0.5967 1.41 1999 1.52 0.6633 1.52 2000 0.9 0.74 0.89 2001 1.29 0.82 1.19 2002 1.84 0.8775 1.46 12 months ended 6/30/03 2.21 0.9175 1.66 See the Operations section of the Investors page of www.cinfin.com for non-GAAP and non-statutory reconciliation information. Per diluted share

Focus on Shareholder Value - Positioned to Resume Book Value Growth 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 At 6/30/03 At Sept 30, 2002 34.14 Book value - Dollars per outstanding share 1.37 1.69 2.08 2.47 3.06 3.74 4.01 5.08 6.31 6.18 8.79 10.37 11.7 11.63 15.8 18.95 28.35 33.72 33.46 37.26 37.07 34.65 36.57 Adjusted for splits Book value - dollars per outstanding share

Complement Performance with Information Management accessibility Primary objectives of investor relations activities Comprehensive Transparent Outreach and education Headquarters visit Established formal investor relations function Expanding materials, enhancing Web site Conferences and travel

Questions

Outperform in 2003 and Beyond John J. Schiff, Jr., CPCU Chairman & Chief Executive Officer

Outperform in 2003 and Beyond Generate steady growth and above-average profitability by leveraging regional franchise and proven agency-centered business strategy Obtain strong investment income growth and capital appreciation through equity-focused investment strategy Maintain financial strength

Enhancing Return to Shareholders Philosophy leads to long-term shareholder value 11.3% 10-year compound growth in paid dividends 12.4% increase in indicated annualized payout in February 2003 43rd consecutive increase 100-share investment in 1950 now 194,667 shares without cash dividend reinvestment

Focus on Shareholder Value Operating Income Dividends Paid Net Income 1997* 1.49 0.5333 1.77 1998 1.16 0.5967 1.41 1999 1.52 0.6633 1.52 2000 0.9 0.74 0.89 2001 1.29 0.82 1.19 2002 1.84 0.8775 1.46 1H 2002 0.74 0.67 0.4325 1H 2003 1.11 0.87 0.4725 See the Operations section of the Investors page of www.cinfin.com for non-GAAP and non-statutory reconciliation information. Per diluted share

Cincinnati Financial Corporation

EX-99.3

Exhibit 99.3

Choice and Control Diamond Personal Lines Processing System Moderator: Larry Plum, CPCU Senior Vice President Personal Lines

Presenters Don Doyle, CPCU, AIM Vice President Steve Leibel, CPCU, AIM Assistant Vice President

Diamond Advantages Meet agency needs Reduce paper Reduce human-intensive processing Improve agency interface Improve underwriting report integration Eliminate manual rating Increase billing options

Cincinnati Considerations Agency underwriting Local agency in the forefront of transactions Flexibility Immediate service Agency control of policies Support operations

Contractors' Task Force Moderator: Chris Kendall, CPCU, AIT, AIM, ARe, ARM, ARP Vice President Commercial Lines

Presenters Rick Ferris, Commercial Product Management Marty Mullen, CPCU, Headquarters Claims Marc Phillips, CPCU, AIM, Commercial Product Management J.B. Shockey, CPCU, CLU, CIC, Sales & Marketing

Early Issue Identification Significant portion of our agents' market Increasing claims activity Risk transfer, synthetic stucco, construction defects, mold Deteriorating profitability Accelerating new business growth Very restrictive market conditions

Task Force Activated Initiated October 25, 2001 Multi-departmental Identify and define issues Determine practical solutions Maintain a market for our customers Grow proportionately and profitably Report submitted January 29, 2002

Marketplace Realities Market (residential contractors) firming significantly 25% to 200% renewal increases some carriers exiting the market mandating large deductibles reduced availability of limits years of soft market underpricing Action necessary to keep up with loss trends and to avoid being selected against

Implementing Task Force Recommendations Write one-year policies until new form filings effective Institute synthetic stucco and mold exclusions Redesign contractor's application Require $1 million limits for subcontractors Avoid writing large residential builders Require property damage deductibles Reduce commission to 15% on new business Emphasize agency underwriting and leverage

Follow-up Activities Increase rates Re-priced both primary and umbrella policies Added restrictions in difficult states Heightened underwriter awareness through additional training Introduced Risk Management Guide for insureds Developed Contractors' Liability Workshop for agents

Positive Results for Cincinnati Still early for many conclusions Increased awareness of contractor issues Significant account premium increases Maintained proportion to other classes Favorably moderating growth Loss ratio trend appears favorable Maintained an open market for our agents

Cross-serving Opportunities: Leveraging Agency and Client Relationships Moderator: Ken Miller, CLU, ChFC CFC Vice President Investments

Spreading the Word to Agents Mike Terrell, CPCU, RPLU, CIC Assistant Vice President Travel team promotes lesser-known lines Cross serving protects Cincinnati accounts by helping agencies keep number of carriers and volume commitments low Increases account retention by increasing service and loyalty Seminars and visits showcase highly profitable lines and/or centers of influence

Dentist's Package Program Mike Terrell, CPCU, RPLU, CIC Assistant Vice President Cincinnati insures 12,000 dentists- 17.8% market share within 31 active states Marketplace instability creates opportunities Local agent service is a Cincinnati advantage Cincinnati supports agents with product advertising, risk management presentations, dentist association tradeshow participation

Dentist's Package Program Direct Written Premiums 1995 1996 1997 1998 1999 2000 2001 2002 Written Premium 16.6 17.9 19.1 20.1 20.6 21.9 25.9 26.8 In millions

Directors & Officers Liability Tom Kelly Vice President Travel team educates agents and increases opportunities for new business Market instability creates opportunities Cincinnati has programs for nonprofit, privately held or publicly traded companies and financial institutions

1998 1999 2000 2001 2002 Written Premium 21 22 25 29 33 Directors & Officers Policies Direct Written Premiums In millions

Commercial Lines Opportunities Mark Wietmarschen Vice President Commercial Inland Marine Growth opportunities: larger monoline risks, rounding accounts Our strength and our focus: selected classes of business Growth and profitability: doubled premium to $80 million in four years Special Accounts Marketing Program Experienced underwriters handling high-profile, large-premium accounts Build agency relationship by writing key accounts Unique account management

Life Worksite Marketing Eric Taylor, ChFC, CLU, LLIF Assistant Vice President Growing market for voluntary products Opportunity to bring professional service of agents to underserved groups Efficient distribution benefits everyone Provides sales leads to agents Helps employers control benefit costs Gives employees broader coverage than group insurance

Worksite Marketing Gross Collected Premiums 1997 1998 1999 2000 2001 2002 1H 2003 East 13.3 13.8 14.3 15.4 16.3 17.5 9.2 West 0.09 0.04 0.04 0.08 0.06 0.07 0.06 North In millions

Leasing/Financing Dave Fieler Assistant Secretary Additional services strengthen client relationships and retention Leasing and financing for vehicles and equipment Commercial mortgage loans Clients are agencies as well as commercial insureds and agency employees (vehicles)

CinFin Capital Management Jo Ann Quinif Marketing Representative Leverages investment expertise and policyholders' respect and trust for agents Recognizes that agencies are evolving into financial service organizations Offering separate account management for agents/agencies and clients Adding CinFin to the agencies' broker-dealer platforms

CinFin's Growth 6/30/2000 6/30/2001 6/30/2002 6/30/2003 Total Under Management 493 584 677 739 Number of Accounts 24 30 35 48 In millions

Enhancing Field Claims Efficiency and Effectiveness Moderator: Dean Dicke Senior Vice President Field Claims

From the Big Picture to a Big Change What we do and why we are improving it Dean Dicke, Senior Vice President Conceptual overview of Claims Management System Gary Givler, Assistant Vice President System demonstration: functionality for claims representatives John Crow, Associate Manager

A Virtual Claim File Will enable collaboration between locations Will provide document management Will deliver real-time claims transaction data

CMS Will Provide Easier Claim File Management Role-based security Limits access to claims files Built-in business rules Facilitate new claim assignments Meet need for accounting controls Automated file history Provides a record of changes made by all file handlers Reduces data entry

Four Major Building Blocks Business Partner Collections & Disbursements Business Workplace Claims Management

Claims Management Claims Details Loss details Open features Policy verification Limits/deductibles Reserves Additional facts (SIU, litigation, salvage, subrogation) Scanned Documents Activity Log Pending Tasks Reserves and Payments Comprises bulk of virtual claim file The Cornerstone

Business Workplace Claims rep's "inbox" Provides a direct link to CM so that claims filed can be reviewed Three More Blocks Complete the System Contact list of all participants involved in any CIC claim Includes policyholders, claimants, attorneys, repair shops, etc. Business Partner Claims Management Collections & Disbursements Creates checks based on payment requests initiated in CM Posts incoming payments and clears subrogation/ salvage item created in CM

Assists in the Key Steps of Managing a Claim Capture & Review Investigative Details Process Vendor Invoice First Notice of Loss Handle Salvage Open Subclaim & Verify Policy Setup Claim Financials Pursue Subrogation Pay & Close Claim Process Incoming Payment

Virtual File Helps Manage File Attachments Scan documents and attach to file Send additional documents to HQ Incoming Mail View documents in virtual file CIMD sorts mail between old and new claim files Forward docs for new claims to Imaging Receive notice of priority mail

Key Tangible Benefits Single point of entry Will reduce time associates spend on paperwork Will lay groundwork for move to paperless processing, including check writing Will reduce opportunity for fraud Will permit growth without adding associates

Key Intangible Benefits: Tangible Access to just-in-time data Integrity of data Increased customer service/satisfaction Improved external visibility Improved operational data Complex claim handling Intangible

Benefits Flow to Operational Areas A scaleable claims handling process to keep up with corporate growth Corporate Accounting Loss Control IT Underwriting Document Management Auditing Agencies "Real-time" access to claim loss and reserve data provides more transparency to management Enhanced fraud reporting capabilities The foundation of a claims system upon which to build and integrate with other in-house systems leveraging previous purchases Data analysis capabilities contribute to more informed underwriting decisions Reduced reliance on paper documents saves money and time Electronic audit trail eases the auditing burden Single claim file accessible by many means agents get the information they need when they need it

The Virtual Claim File Has Four Parts 1. Table of Contents Includes all open subclaims Can review file at claim or subclaim level 2. Work Area Detailed information about the claim or subclaim Tabs organize the file by categories 1 3. The Players List of claim participants 2 4 3 4. To Do List of tasks that need to be done

The Directory Tree Guides Users Through the Claim File Table of Contents (Claim) Chapter 2 (Subclaim) Chapter 1 (Subclaim) The Content (File Details) The Content (File Details) The Content (File Details) The Content (File Details) The Content (File Details) The Content (File Details)

The Claim Is at the Highest Level The Claim Is at the Highest Level Level One - Claim Overview Provides information relating to the loss, the policy and the policyholder Tasks completed at the claim level include: View policy and policyholder details Set limits and deductibles

Subclaims Appear Under Each Claim Level Two - Subclaim A new subclaim is opened for each claimant and coverage Each subclaim has separate reserves and claim items Tasks completed at the subclaim level include: Setting reserves Making payments

Business Workplace Organizes Claims and Keeps Track of Open Items and Keeps Track of Open Items and Keeps Track of Open Items Diary/ To Do List Personal Organizer/ Incoming Mail

How Collaboration Is Achieved in CMS Field Claims Representative HQ Examiner Regional Manager CFC Management 1. Receives new claim file 3. Views claim files 5. Able to view claim files 7. Able to view claim files 2. Establishes initial reserves < $35,000; initiates approval process for larger claims 4. Notified reserve > $35,000 entered; may decline or forward for approval 6. Approves reserves $35,000 - $99,999 8. Approves reserves $100,000 or greater

From Drawing Board to Policyholder Rate and Policy Changes Moderator: Jim Benoski Chief Insurance Officer

The Cincinnati Product Portfolio Jody L. Wainscott Vice President - Research & Development Competitive, up to date and state of the art Gear portfolio to our target market Give agents what they need to attract quality new business and retain profitable renewals Gather intelligence from agents, publications, other company filings Consider all in the context of our agency relationships

Property Casualty Filings Gregory D. Schmidt, CPCU, ARP, CSF, ARC Vice President - Staff Underwriting Statutory changes, R&D, rate changes, ISO Coordinate the filing process-submissions, bulletins, forms and manuals Generate rate changes from annual review of business lines, forecasting and IBNR data Foster healthy relationships with state Departments of Insurance Innovate to improve the process for the future

Compliance Mark A. Welsh Vice President - Staff Underwriting Regulatory compliance is a moving target Evolving products, underwriting and claims practices Review and communicate new laws and regulations in all states and initiate changes Perform internal audits and respond to state data calls, surveys, exams Integrate the highest standards into Cincinnati processes and culture

Cincinnati's Education & Training Center Observe a Class Moderator: Mark R. DesJardins, CPCU, AIM, AIC, ARP Vice President Education & Training

Advanced Commercial Property Agent Workshop Instructor: Michael J. Gagnon Vice President Headquarters Claims

Agent Education Is Strategic High level of support sets Cincinnati apart More than 3,500 agents and customer service representatives have enrolled in Cincinnati's headquarters and field seminars, roundtables and workshops in 2003 Agents increase their knowledge of our products, marketing focus, processes We hear their thoughts on our market position and relationship

Advanced Commercial Property A new class on our commercial and inland marine forms: Key benefits and advantages Pricing and claims issues Insurance to Value topic focuses on benefits to policyholders, agents and the company Agents receive continuing education credits High demand for this course will be met with additional dates in 2003 and 2004

Underwriting Training Class Instructors: Commercial Underwriting Superintendents Jennifer Baker, CPCU, AIM, ARM, CPIW Lynn Dassel, CPCU, AIM, CPIW

Entry-level Professional Position Cincinnati's program: Classroom instruction, five weeks Practice desk, four weeks Mentoring, three months Territory assignment with mentor support Instructors are hands-on Cincinnati underwriters Field marketing and other areas select candidates with solid underwriting foundation Today's lesson: general liability insurance

Ohio UM/UIM Legal and Legislative Update Moderator: Tim Timmel Senior Vice President Operations

Presenters Teresa Cracas, Associate Counsel Gary Kline, CPCU, Vice President Scott Gilliam, Assistant Vice President Lisa Love, Senior Counsel

Our Operational Philosophy Conservative Strategically consistent solutions Agency centered Stable

That Philosophy Continues to Serve Us Today Challenges posed by the UM/UIM crisis in Ohio presented opportunity to put principles into practice Provides a case study of a challenge faced and weathered

Ohio Uninsured and Underinsured Motorist Insurance Scott-Pontzer vs. Liberty Mutual Fire Insurance Company (1999) Linko vs. Insurance Company of North America (2000)

Example Man is injured in an accident caused by an uninsured motorist He is not working and is not in a car owned or leased by his employer Man and his wife are both employed They purchased personal auto insurance but specifically rejected UM/UIM coverage

Example Policies potentially triggered: Personal auto policy Man's employer's policy Wife's employer's policy Any resident relatives' (children's or parents') employers' policies Amount of UM/UIM premium paid for UM/UIM coverage for this accident: $0.00

Commercial Auto - 2000 Company Company Ohio Direct Premiums Written (In millions) Market Share (In %) 1 Cincinnati $67 8.8 2 Westfield 54 7.0 3 CNA 46 6.0 4 Liberty Mutual 36 4.7 5 Progressive 34 4.4 6 Travelers/Citigroup 33 4.3 7 Nationwide 30 3.9 8 Auto-Owners 27 3.5 9 Zurich/Farmers 25 3.3 10 State Farm 23 3.1 Total Total $768 2002 Ohio Insurance Facts, Ohio Insurance Institute

Private Passenger Auto - 2000 Company Company Ohio Direct Premiums Written (In millions) Market Share (In %) 1 State Farm $795 18.3 2 Nationwide 528 12.2 3 Progressive 522 12.0 4 Allstate Insurance 353 8.1 5 Grange Mutual Casualty 244 5.6 6 Westfield 161 3.7 7 Cincinnati 156 3.6 8 Zurich/Farmers 113 2.6 9 Motorists Insurance 104 2.4 10 Erie Insurance 103 2.4 Total Total $4,338 2002 Ohio Insurance Facts, Ohio Insurance Institute

All Auto Lines - 2000 Company Company Ohio Direct Premiums Written (In millions) Market Share (In %) 1 State Farm $818 16.0 2 Nationwide 558 10.9 3 Progressive 556 10.9 4 Allstate 358 7.0 5 Grange Mutual Casualty 266 5.2 6 Cincinnati 224 4.4 7 Westfield 215 4.2 8 Zurich/Farmers 138 2.7 9 Motorists Insurance 123 2.4 10 Erie Insurance 116 2.3 Total Total $5,106 2002 Ohio Insurance Facts, Ohio Insurance Institute

Cincinnati Faced a Significant Challenge How do we respond while staying true to our founding principles? Our choices show our philosophy in action.

Expired Policies Goal: Stay true to philosophy of protecting shareholders. Took conservative action of establishing reserves Posted December 2000 - $110 million Incurred (paid plus reserves) through June 30, 2003 of approximately $150 million including $40 million incurred prior to establishing reserve IBNR at June 30, 2003 - $18 million Allowed Cincinnati to address the issue and focus on the future.

Current Policies Goal: Stop the bleeding Amended selection/rejection form Obtained new forms from all affected policyholders Increased scrutiny on signed forms Excellent agent cooperation

New Business and Renewals Goal: Provide a stable market for our agents and their clients Carriers left market or significantly restricted writings Cost to industry estimated at $1.5 billion

New Business and Renewals Cincinnati's Response Stayed open for automobile business Did not restrict classes of business written Promptly amended commercial UM/UIM forms Continue to obtain Linko-compliant rejection forms Increased rates, but maintained affordability Moved to one-year commercial auto policies Worked with industry trade groups to change the Ohio UM/UIM statute

New Business and Renewals Cincinnati's stable, reasonable response: Increased agent confidence in Cincinnati Insurance as a market Brought good accounts to Cincinnati from carriers who reacted with more drastic measures Demonstrated willingness to work on long-term solutions instead of quick fixes

The Future Optimistic

UM/UIM Claims Submitted Cincinnati Reported Claim Count (Scott-Pontzer- and Linko-related) 1Q00 50 2Q00 51 3Q00 47 4Q00 63 1Q01 134 2Q01 136 3Q01 130 4Q01 154 1Q02 115 2Q02 109 3Q02 86 4Q02 72 1Q03 61 2Q03 59

Window Closing for Scott-Pontzer and Linko Claims Statutory - S.B. 97 - Effective 10/31/2001 Change in the Ohio Supreme Court

Ohio UM/UIM Now a Controlled Challenge UM/UIM challenge illustrated our philosophy in action Typifies how relationships and long-term view guide our choices in adverse situations Continued to provide a stable, predictable market for our agents Refused to abandon our policyholders Developed a creative solution Acted quickly

Ohio UM/UIM Now a Controlled Challenge Can count on Cincinnati to find creative solutions to similar challenges Proves the soundness of our founding principles

Technology Progress in Commercial Lines Moderator: Craig Forrester, CLU Senior Vice President Information Technology

What Agents Want Faster delivery Accurate policies Easier processing Immediate responses

CinciLink Pam Cooper, CPCU, AIM Commercial Technical Support Cincinnati's agents-only Web site Single point of access for information and business application systems from Cincinnati Speeds and improves information delivery to agents Brings Cincinnati to agents 24 hours a day

WinCPP Debby Smith Commercial Technical Support Web-based commercial package and commercial auto quotes Real-time quotes Improved accuracy Faster policy turnaround Supports long-range paperless workflow

e-CLAS Bill Thomas, AIM Commercial Lines Administration Future commercial lines automated production system Web-based access through CinciLink Will streamline policy issue processes Will enhance service to our customers Operational efficiencies "Buy vs. build" Customer involvement Deployment strategy

Commercial Lines Electronic Policy Files Will streamline current processing steps Will support online access to policy information Will build on Cincinnati Life's success

Web-based Tools Agents Use Today CinciLink Agency Web Site Moderator: Joan Shevchik, CPCU, CLU Senior Vice President Corporate Communications

CinciLink Security Mike Dockery Assistant Secretary - Information Security Staff-Certified Information Security Professional and Certified Information System Auditors Involved in selection, design, implementation, monitoring of secure Web site Active in security organizations

CinciLink Development Scott McDonald Senior Group Manager - IT e-Business Design and update pages and Web applications Develop tools so agents can order supplies or marketing materials, access forms library, download software updates Help business users create Web-based solutions with faster, more flexible access to content In-house talent participates in major technology projects

Content Management Mike Donges Manager - Web Content Management Coordinate processes to assure content is strategic, timely, accurate, complete Agent-driven information and tools Web liaisons represent departments in development, review and maintenance processes Traffic reports tell us what agents use, how to direct resources

CinciLink Strategy Phil Kramer, CIC Assistant Secretary - Sales & Marketing Platform for Web-based content and applications Sponsored by Sales & Marketing Deployed in 2002 to all agencies Expanding with new information and tools

CinciLink Home Page Our agents-only Web site provides access to departments, directories, applications, software downloads software downloads software downloads software downloads software downloads

My Tools Links to Key Applications Basic vs. Delegated Roles Basic vs. Delegated Roles Basic vs. Delegated Roles

Site Security Administrator Home Page Each agency chooses which staff members in main and branch offices use CinciLink tools main and branch offices use CinciLink tools main and branch offices use CinciLink tools main and branch offices use CinciLink tools

Claims Online Report Engine Agents have access to their policyholders' loss histories through previous business day 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 20.4 27.4 90 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9

CinciForms Online Forms Library Indexed by form, state and version and printable Indexed by form, state and version and printable Indexed by form, state and version and printable

CinciPrint Agencies complete forms online Agencies complete forms online Agencies complete forms online

Keeping It Personal Donna Fleek Senior Field Analyst - IT Support Services Field analysts make agency calls and meet CinciLink customers face to face Give hands-on assistance with agency set up, training and problem solving Bring practical, agency perspective to development teams

Imaging and Workflow A Move Toward Paperless Moderator: Harold Eggers, FALU, FLMI, CLU, HIAA Vice President Life Policy Issue

Presenters Denise Fugate, FLMI, HIAA, ACS Project Manager and Independent Consultant Dawn Alcorn, Vice President Administrative Services Robyn Muhlberg, Secretary IT Life/PeopleSoft/Reporting

Increasing Life Productivity Operating Projections 1998 2001 2002 2003 2004 2005 2006 2007 Life New Business Application Count 32325 40986 47610 50466 53494 56704 60106 63712 Associates 23.5 46.5 46.5 43 43 43 43 43

The Initial Project The Cincinnati Life Insurance Company Convert all in-force life client records to electronic images Improve the underwriting process through automation with workflow technologies

Results and Benefits Converted 320,000 in-force client records Scanned 9.6 million pages in last 18 months Currently scanning 10,000 pages monthly Reduced file retrieval time from four hours to four seconds Improved underwriting productivity by 25% Improved claims processing productivity by 20% Improved customer service - transaction processing time reduced by 20%

Benefits Extend to All Agents, Policyholders and CFC Agents receive file status two days earlier Data uploaded from third-party vendors Improved service: Policyholders - better call handling Agents - reduced time to issue policies In-house technical experts Reduce expense of deploying enterprise-wide Lower operational costs improving profitability

Enterprise Strategy Scalable Technology Ready to address larger, more complex business needs for a greater impact on the bottom line Technical knowledge Operational experience Hardware Scanning equipment Servers Software Imaging Workflow

Enterprise Strategy Next Steps Cincinnati Life Will extend benefits to agencies through system and software integration, online applications Claims Online claims system (CMS) will employ imaging technology Commercial lines Will duplicate the success of Cincinnati Life with a higher-volume, higher-premium line of business