EX-99.2

Cincinnati Financial Corporation

Supplemental Financial Data
Second Quarter 2005


	Page		Status
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures		3		8/4/2005

Consolidated
Quick Reference		4		8/4/2005
Consolidated Statements of Income		5		8/4/2005
CFC and Subsidiary Consolidation – Six Months Ended June 30, 2005		6		8/4/2005
CFC and Subsidiary Consolidation – Six Months Ended June 30, 2004		7		8/4/2005
CFC and Subsidiary Consolidation – Three Months Ended June 30, 2005		8		8/4/2005
CFC and Subsidiary Consolidation – Three Months Ended June 30, 2004		9		8/4/2005
Consolidated Balance Sheets		10		8/4/2005
10-Year Net Income Reconciliation		11		8/4/2005
Quarterly Net Income Reconciliation		12		8/4/2005
Top Holdings – Common Stocks		13		8/4/2005

Property Casualty Insurance Operations
GAAP Statements of Income		14		8/4/2005
Statutory Income Statements		15		8/4/2005
Statutory Quarterly Analysis – Consolidated		16		8/4/2005
Statutory Quarterly Analysis – Commercial Lines		17		8/4/2005
Statutory Quarterly Analysis – Personal Lines		18		8/4/2005
Direct Written Premiums by Line of Business and State		19		8/4/2005
Reconciliation Data
11-Year Property Casualty Data – Consolidated		20		8/4/2005
6-Year Property Casualty Data – Commercial Lines		21		8/4/2005
6-Year Property Casualty Data – Personal Lines		22		8/4/2005
Quarterly Property Casualty Data – Consolidated		23		8/4/2005
Quarterly Property Casualty Data – Commercial Lines		24		8/4/2005
Quarterly Property Casualty Data – Personal Lines		25		8/4/2005
Quarterly Property Casualty – Line of Business		26		8/4/2005

Life Insurance Operations
GAAP Statements of Income		27		8/4/2005
Statutory Statements of Income		28		8/4/2005
Expenses as a Percentage of Premium		29		8/4/2005

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

•		Operating income: Operating income (readers also may have seen this measure defined as net income before realized investment gains and losses) is calculated by excluding net realized investment gains and losses 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. Moreover, 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, 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 written premiums to policy effective dates, which added $117 million to 2002 written premiums. To better assess ongoing business trends, management may exclude this adjustment when analyzing trends in written premiums and statutory ratios that make use of written premiums.

•

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

•

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

•

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

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

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

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

2005 Second-Quarter Supplement

Cincinnati Financial Corporation

Quick Reference — Second Quarter 2005
(all data shown is for the three months ended or as of June 30, 2005)

(Based on reported data — see Pages 23-25 for adjusted data)


(Dollars in millions except share data)
Revenues:

Commercial lines net written premiums	$	568
Year-over-year percentage change		10.6	%
Personal lines net written premiums	$	224
Year-over-year percentage change		1.1	%
Property casualty net written premiums	$	791
Year-over-year percentage change		7.7	%
Commercial lines net earned premiums	$	563
Year-over-year percentage change		8.3	%
Personal lines net earned premiums	$	202
Year-over-year percentage change		2.5	%
Property casualty net earned premiums	$	765
Year-over-year percentage change		6.7	%
Life and accident and health net earned premiums	$	29
Year-over-year percentage change		8.3	%
Investment income	$	129
Year-over-year percentage change		7.3	%
Realized gains on investments	$	13
Year-over-year percentage change		(76.4	)%
Other income	$	4
Year-over-year percentage change		30.6	%
Total revenues	$	940
Year-over-year percentage change		1.9	%

Income:

Operating income	$	150
Year-over-year percentage change		25.6	%
Net realized investment gains and losses	$	8
Year-over-year percentage change		(77.9	)%
Net income	$	158
Year-over-year percentage change		1.6	%

Per share: (diluted)

Operating income	$	0.84
Year-over-year percentage change		25.4	%
Net realized investment gains and losses	$	0.05
Year-over-year percentage change		(75.0	)%
Net income	$	0.89
Year-over-year percentage change		2.3	%
Book value	$	35.08
Year-over-year percentage change		0.5	%
Weighted average shares — diluted		177,097,493
Year-over-year percentage change		(0.9	)%

Benefits and expenses:

Commercial lines losses	$	308
Year-over-year percentage change		10.1	%
Personal lines losses	$	128
Year-over-year percentage change		(20.9)	%
Property casualty losses	$	436
Year-over-year percentage change		(1.2)	%
Life and accident and health losses and policy benefits	$	26
Year-over-year percentage change		0.5	%
Operating expenses	$	251
Year-over-year percentage change		9.7	%
Interest expenses	$	13
Year-over-year percentage change		55.6	%
Total expenses	$	725
Year-over-year percentage change		2.3	%
Income before income taxes	$	215
Year-over-year percentage change		0.5	%
Total income tax	$	57
Year-over-year percentage change		(2.4)	%
Effective tax rate		26.6	%

Ratios:

Commercial lines GAAP combined ratio		84.8	%
Personal lines GAAP combined ratio		95.3	%
Property casualty GAAP combined ratio		87.5	%

Commercial lines STAT combined ratio		83.9	%
Personal lines STAT combined ratio		93.6	%
Property casualty STAT combined ratio		86.6	%

Return on equity based upon net income (annualized)		10.4	%
Return on equity based upon operating income (annualized)		13.8	%

Balance Sheet:

Fixed maturity investments	$	5,412
Equity securities		7,148
Other invested assets		40

Total invested assets	$	12,600


Property casualty and life loss and loss expense reserves	$	3,608
Total debt	$	791
Shareholders equity	$	6,132

Cincinnati Financial Corporation

Consolidated Statements of Income


	For the Three Months Ended June 30,												For the Six Months Ended June 30,
	2005			2004			Change			% Change			2005			2004			Change			% Change

Revenues:
Premiums earned:
Property casualty	$	807,297,492		$	757,427,656		$	49,869,836			6.58		$	1,601,793,433		$	1,511,077,308		$	90,716,125			6.00
Life		38,053,773			33,745,792			4,307,981			12.77			69,570,579			64,339,306			5,231,273			8.13
Accident health		1,436,094			1,392,820			43,274			3.11			3,089,251			2,973,784			115,467			3.88
Premiums ceded		(53,058,357	)		(48,568,942	)		(4,489,415	)		(9.24	)		(104,008,726	)		(94,320,708	)		(9,688,018	)		(10.27	)
Total premiums earned		793,729,002			743,997,326			49,731,676			6.68			1,570,444,537			1,484,069,690			86,374,847			5.82
Investment income		129,327,901			120,515,574			8,812,327			7.31			256,367,172			240,822,768			15,544,404			6.45
Realized gain on investments		12,900,303			55,098,831			(42,198,528	)		(76.59	)		21,685,286			61,807,307			(40,122,021	)		(64.91	)
Other income		3,845,636			2,944,656			900,980			30.60			7,594,030			6,402,081			1,191,949			18.62
Total revenues	$	939,802,842		$	922,556,387		$	17,246,455			1.87		$	1,856,091,025		$	1,793,101,846		$	62,989,179			3.51

Benefits & expenses:
Losses & policy benefits	$	499,176,791		$	525,210,564		$	(26,033,773	)		(4.96	)	$	1,037,034,038		$	986,324,213		$	50,709,825			5.14
Reinsurance recoveries		(38,552,521	)		(59,444,839	)		20,892,318			35.15			(95,227,939	)		(86,975,866	)		(8,252,073	)		(9.49	)
Commissions		165,775,469			150,208,650			15,566,819			10.36			316,215,128			311,380,600			4,834,528			1.55
Other operating expenses		72,558,984			67,024,755			5,534,229			8.26			139,503,234			128,722,741			10,780,493			8.37
Interest expense		12,888,705			8,285,105			4,603,600			55.56			25,846,835			16,611,180			9,235,655			55.60
Taxes, licenses & fees		18,267,417			20,185,296			(1,917,879	)		(9.50	)		35,123,104			39,459,007			(4,335,903	)		(10.99	)
Incr deferred acq expense		(7,455,455	)		(6,034,212	)		(1,421,243	)		(23.55	)		(18,824,447	)		(23,635,286	)		4,810,839			20.35
Other expenses		2,187,945			3,213,308			(1,025,363	)		(31.91	)		6,035,551			6,042,781			(7,230	)		(0.12	)
Total expenses	$	724,847,335		$	708,648,627		$	16,198,708			2.29		$	1,445,705,504		$	1,377,929,370		$	67,776,134			4.92
Income before income taxes	$	214,955,507		$	213,907,760		$	1,047,747			0.49		$	410,385,521		$	415,172,476		$	(4,786,955	)		(1.15	)

Provision for income taxes:
Current operating income	$	52,030,764		$	23,509,245		$	28,521,519			121.32		$	99,339,804		$	68,875,326		$	30,464,478			44.23
Current realized investments gains and losses		4,738,332			19,073,757			(14,335,425	)		(75.16	)		7,646,452			21,421,722			(13,775,270	)		(64.31	)
Deferred		390,078			16,005,141			(15,615,063	)		(97.56	)		1,246,528			23,437,200			(22,190,672	)		(94.68	)
Total income taxes	$	57,159,174		$	58,588,143		$	(1,428,969	)		(2.44	)	$	108,232,784		$	113,734,248		$	(5,501,464	)		(4.84	)

Net income	$	157,796,333		$	155,319,617		$	2,476,716			1.59		$	302,152,737		$	301,438,228		$	714,509			0.24
Comprehensive net income	$	209,090,157		$	(50,983,132	)	$	260,073,289			510.12		$	20,010,966		$	(4,530,560	)	$	24,541,526			541.69
Operating income	$	149,634,362		$	119,294,546		$	30,339,816			25.43		$	288,113,903		$	261,052,643		$	27,061,260			10.37
Net realized investments gains and losses	$	8,161,971		$	36,025,075		$	(27,863,104	)		(77.34	)	$	14,038,834		$	40,385,585		$	(26,346,751	)		(65.24	)

Net income per share:
Operating income	$	0.85		$	0.68		$	0.17			25.00		$	1.64		$	1.48		$	0.16			10.81
Net realized investments gains and losses		0.05			0.20			(0.15	)		(75.00	)		0.08			0.23			(0.15	)		(65.22	)
Net income per share (basic)	$	0.90		$	0.88		$	0.02			2.27		$	1.72		$	1.71		$	0.01			0.58
Operating income	$	0.84		$	0.67		$	0.17			25.37		$	1.62		$	1.46		$	0.16			10.96
Net realized investments gains and losses		0.05			0.20			(0.15	)		(75.00	)		0.08			0.23			(0.15	)		(65.22	)
Net income per share (diluted)	$	0.89		$	0.87		$	0.02			2.30		$	1.70		$	1.69		$	0.01			0.59
Dividends per share:
Paid	$	0.2900		$	0.2620		$	0.0280			10.69		$	0.5520		$	0.5000		$	0.0520			10.40
Declared	$	0.3050		$	0.2620		$	0.0430			16.41		$	0.5950		$	0.5100		$	0.0850			16.67
Number of shares:
Weighted avg — basic		175,226,612			176,654,359			(1,427,747	)		(0.81	)		175,389,421			176,703,010			(1,313,589	)		(0.74	)
Weighted avg — diluted		177,097,493			178,684,929			(1,587,436	)		(0.89	)		177,451,366			178,658,935			(1,207,569	)		(0.68	)

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Six Months Ended June 30, 2005


	Total			CFC			CIC GROUP			CLIC			CFC-I			CINFIN			ELIM

Revenues:
Premiums earned:
Property casualty	$	1,601,793,433		$	0		$	1,602,171,328		$	0		$	0		$	0		$	(377,895	)
Life		69,570,579			0			0			69,570,579			0			0			0
Accident health		3,089,251			0			0			3,089,251			0			0			0
Premiums ceded		(104,008,726	)		0			(84,348,733	)		(19,659,993	)		0			0			0
Total earned premium		1,570,444,537			0			1,517,822,595			52,999,837			0			0			(377,895	)
Investment income		256,367,172			42,321,541			163,734,128			48,396,996			783,018			63,053			1,068,436
Realized gain on investments		21,685,286			(2,084,034	)		15,467,723			7,644,838			0			8,056			648,703
Other income		7,594,030			5,901,324			1,650,935			1,594,320			4,741,900			1,112,801			(7,407,250	)
Total revenues	$	1,856,091,025		$	46,138,831		$	1,698,675,381		$	110,635,991		$	5,524,918		$	1,183,910		$	(6,068,006	)

Benefits & expenses:
Losses & policy benefits	$	1,037,034,038		$	0		$	958,955,510		$	79,180,808		$	0		$	0		$	(1,102,280	)
Reinsurance recoveries		(95,227,939	)		0			(65,657,710	)		(29,570,229	)		0			0			0
Commissions		316,215,128			0			299,223,059			16,992,069			0			0			0
Other operating expenses		139,503,234			9,903,322			121,970,560			11,264,457			2,157,663			210,806			(6,003,574	)
Interest expense		25,846,835			25,850,396			0			0			675,730			0			(679,291	)
Taxes, licenses & fees		35,123,104			351,084			32,310,566			2,151,112			292,094			18,248			0
Incr deferred acq expenses		(18,824,447	)		0			(14,041,675	)		(4,782,772	)		0			0			0
Other expenses		6,035,551			0			6,035,443			108			0			0			0
Total expenses	$	1,445,705,504		$	36,104,802		$	1,338,795,753		$	75,235,553		$	3,125,487		$	229,054		$	(7,785,145	)

Income before income taxes	$	410,385,521		$	10,034,029		$	359,879,628		$	35,400,438		$	2,399,431		$	954,856		$	1,717,139

Provision for income taxes:
Current operating income	$	99,339,804		$	(11,230,521	)	$	103,005,087		$	6,245,875		$	1,002,354		$	317,009		$	—
Current capital gains/losses		7,646,452			(443,270	)		5,413,703			2,675,693			0			326			0
Deferred		1,246,528			5,541,677			(7,851,378	)		3,123,875			(168,494	)		(151	)		600,999
Total income tax	$	108,232,784		$	(6,132,114	)	$	100,567,412		$	12,045,443		$	833,860		$	317,184		$	600,999

Net income — current year	$	302,152,737		$	16,166,143		$	259,312,216		$	23,354,995		$	1,565,571		$	637,672		$	1,116,140

Net income — prior year	$	301,438,228		$	47,243,058		$	323,579,153		$	18,656,595		$	1,431,148		$	571,461		$	(90,043,187	)

Change in net income		0.2	%		-65.8	%		-19.9	%		25.2	%		9.4	%		11.6	%

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Six Months Ended June 30, 2004


	Total			CFC			CIC GROUP			CLIC			CFC-I			CINFIN			ELIM

Revenues:
Premiums earned:
Property casualty	$	1,511,077,308		$	0		$	1,511,077,308		$	0		$	0		$	0		$	0
Life		64,339,306			0			0			64,339,306			0			0			0
Accident health		2,973,784			0			0			2,973,784			0			0			0
Premiums ceded		(94,320,708	)		0			(78,646,281	)		(15,674,427	)		0			0			0
Total earned premium		1,484,069,690			0			1,432,431,027			51,638,663			0			0			0
Investment income		240,822,768			65,429,445			130,432,779			44,126,900			797,690			35,954			0
Realized gain on investments		61,807,307			8,162,598			187,482,942			4,698,869			0			(9,123	)		(138,527,979	)
Other income		6,402,081			5,105,116			1,496,911			1,483,565			4,333,967			1,037,905			(7,055,383	)
Total revenue	$	1,793,101,846		$	78,697,159		$	1,751,843,659		$	101,947,997		$	5,131,657		$	1,064,736		$	(145,583,362	)

Benefits & expenses:
Losses & policy benefits	$	986,324,214		$	0		$	906,248,054		$	81,170,392		$	0		$	0		$	(1,094,232	)
Reinsurance recoveries		(86,975,866	)		0			(53,616,903	)		(33,358,963	)		0			0			0
Commissions		311,380,600			0			295,968,362			15,412,238			0			0			0
Other operating expenses		128,722,741			9,190,833			110,852,517			12,443,398			1,600,387			184,613			(5,549,007	)
Interest expense		16,611,180			16,010,112			0			0			1,013,211			0			(412,143	)
Taxes, licenses & fees		39,459,007			1,087,996			35,962,601			2,084,414			310,869			13,127			0
Incr deferred acq expenses		(23,635,286	)		0			(19,681,035	)		(3,954,251	)		0			0			0
Other expenses		6,042,781			0			6,042,676			105			0			0			0
Total expenses	$	1,377,929,371		$	26,288,941		$	1,281,776,272		$	73,797,333		$	2,924,467		$	197,740		$	(7,055,382	)

Income before income taxes	$	415,172,475		$	52,408,218		$	470,067,387		$	28,150,664		$	2,207,190		$	866,996		$	(138,527,980	)

Provision for income taxes:
Current operating income	$	20,390,533		$	(22,429,458	)	$	35,536,740		$	5,784,353		$	1,201,272		$	297,626		$	—
Current capital gains/losses		21,421,722			2,646,075			65,619,029			1,644,604			0			(3,193	)		(48,484,793	)
Deferred		71,921,993			24,948,543			45,332,465			2,065,113			(425,230	)		1,102			0
Total income tax	$	113,734,248		$	5,165,160		$	146,488,234		$	9,494,070		$	776,042		$	295,535		$	(48,484,793	)

Net income — current year	$	301,438,227		$	47,243,058		$	323,579,153		$	18,656,594		$	1,431,148		$	571,461		$	(90,043,187	)

Net income — prior year	$	141,102,477		$	24,517,533		$	108,607,539		$	6,252,125		$	1,221,234		$	504,047		$	(1	)

Change in net income		113.6	%		92.7	%		197.9	%		198.4	%		17.2	%		13.4	%

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Three Months Ended June 30, 2005


	Total			CFC			CIC GROUP			CLIC			CFC-I			CINFIN			ELIM

Revenues:
Premiums earned:
Property casualty	$	807,297,492		$	0		$	807,470,314		$	0		$	0		$	0		$	(172,822	)
Life		38,053,773			0			0			38,053,773			0			0			0
Accident health		1,436,094			0			0			1,436,094			0			0			0
Premiums ceded		(53,058,357	)		0			(42,791,656	)		(10,266,701	)		0			0			0
Total earned premium		793,729,002			0			764,678,658			29,223,166			0			0			(172,822	)
Investment income		129,327,901			21,228,766			82,982,613			24,422,519			356,320			33,178			304,505
Realized gain on investments		12,900,303			(2,442,069	)		9,414,823			5,352,141			0			6,617			568,791
Other income		3,845,636			3,051,964			722,052			846,798			2,400,047			561,390			(3,736,615	)
Total revenue	$	939,802,842		$	21,838,661		$	857,798,146		$	59,844,624		$	2,756,367		$	601,185		$	(3,036,141	)

Benefits & expenses:
Losses & policy benefits	$	499,176,791		$	0		$	455,193,701		$	44,534,290		$	0		$	0		$	(551,200	)
Reinsurance recoveries		(38,552,521	)		0			(19,742,198	)		(18,810,323	)		0			0			0
Commissions		165,775,469			0			157,079,211			8,696,258			0			0			0
Other operating expenses		72,558,984			4,003,223			63,597,860			6,726,436			1,132,022			89,035			(2,989,592	)
Interest expense		12,888,705			12,888,705			0			0			368,645			0			(368,645	)
Taxes, licenses & fees		18,267,417			522,757			16,534,001			1,073,625			156,034			(19,000	)		0
Incr deferred acq expenses		(7,455,455	)		0			(5,422,878	)		(2,032,577	)		0			0			0
Other expenses		2,187,945			0			2,187,901			44			0			0			0
Total expenses	$	724,847,335		$	17,414,685		$	669,427,598		$	40,187,753		$	1,656,701		$	70,035		$	(3,909,437	)

Income before income taxes	$	214,955,507		$	4,423,976		$	188,370,548		$	19,656,871		$	1,099,666		$	531,150		$	873,296

Provision for income taxes:
Current operating income	$	52,030,764		$	(3,781,881	)	$	52,137,573		$	3,031,405		$	467,784		$	175,883		$	0
Current capital gains/losses		4,738,332			(598,727	)		3,463,484			1,873,249			0			326			0
Deferred		390,078			1,099,340			(2,740,809	)		1,811,804			(85,924	)		13			305,654
Total income tax	$	57,159,174		$	(3,281,268	)	$	52,860,248		$	6,716,458		$	381,860		$	176,222		$	305,654

Net income — current year	$	157,796,333		$	7,705,244		$	135,510,300		$	12,940,413		$	717,806		$	354,928		$	567,642

Net income — prior year	$	155,319,622		$	27,121,903		$	206,982,220		$	10,213,346		$	758,476		$	286,864		$	(90,043,187	)

Change in net income		1.6	%		-71.6	%		-34.5	%		26.7	%		-5.4	%		23.7	%

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Three Months Ended June 30, 2004


	Total			CFC			CIC GROUP			CLIC			CFC-I			CINFIN			ELIM

Revenues:
Premiums earned:
Property casualty	$	757,427,656		$	0		$	757,179,115		$	0		$	0		$	0		$	248,541
Life		33,745,792			0			0			33,745,792			0			0			0
Accident health		1,392,820			0			0			1,392,820			0			0			0
Premiums ceded		(48,568,942	)		0			(40,403,051	)		(8,165,891	)		0			0			0
Total earned premium		743,997,326			0			716,776,064			26,972,721			0			0			248,541
Investment income		120,515,575			31,538,424			65,987,117			22,172,675			797,690			19,669			0
Realized gain on investments		55,098,831			9,815,704			179,354,949			4,465,280			0			(9,123	)		(138,527,979	)
Other income		2,944,654			2,571,416			751,428			753,782			1,853,947			519,444			(3,505,363	)
Total revenue	$	922,556,386		$	43,925,544		$	962,869,558		$	54,364,458		$	2,651,637		$	529,990		$	(141,784,801	)

Benefits & expenses:
Losses & policy benefits	$	525,210,565		$	0		$	482,394,308		$	43,364,974		$	0		$	0		$	(548,717	)
Reinsurance recoveries		(59,444,840	)		0			(41,679,481	)		(17,765,359	)		0			0			0
Commissions		150,208,650			0			142,141,041			8,067,609			0			0			0
Other operating expenses		67,024,754			4,138,074			57,733,889			6,794,170			805,752			88,408			(2,535,539	)
Interest expense		8,285,104			7,948,360			0			0			509,309			0			(172,565	)
Taxes, licenses & fees		20,185,296			543,989			18,504,707			967,678			162,395			6,527			0
Incr deferred acq expenses		(6,034,212	)		0			(3,534,923	)		(2,499,289	)		0			0			0
Other expenses		3,213,307			0			3,213,238			69			0			0			0
Total expenses	$	708,648,624		$	12,630,423		$	658,772,779		$	38,929,852		$	1,477,456		$	94,935		$	(3,256,821	)

Income before income taxes	$	213,907,762		$	31,295,121		$	304,096,779		$	15,434,606		$	1,174,181		$	435,055		$	(138,527,980	)

Provision for income taxes:
Current operating income	$	(24,975,547	)	$	(19,716,559	)	$	(7,465,338	)	$	1,476,390		$	579,478		$	150,482		$	0
Current capital gains/losses		19,073,755			3,224,662			62,774,231			1,562,848			0			(3,193	)		(48,484,793	)
Deferred		64,489,933			20,665,115			41,805,666			2,182,023			(163,773	)		902			0
Total income tax	$	58,588,141		$	4,173,218		$	97,114,559		$	5,221,261		$	415,705		$	148,191		$	(48,484,793	)

Net income — current year	$	155,319,621		$	27,121,903		$	206,982,220		$	10,213,345		$	758,476		$	286,864		$	(90,043,187	)

Net income — prior year	$	84,476,619		$	18,068,400		$	58,844,510		$	6,753,663		$	567,799		$	242,249		$	(2	)

Change in net income		83.9	%		50.1	%		251.7	%		51.2	%		33.6	%		18.4	%

Cincinnati Financial Corporation

Consolidated Balance Sheets



	June 30,			December 31,
(Dollars in millions except per share data)	2005			2004
	(unaudited)
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2005—$5,179; 2004—$4,854)	$	5,412		$	5,141
Equity securities, at fair value (cost: 2005—$1,982; 2004—$1,945)		7,148			7,498
Other invested assets		40			38
Cash		172			306
Investment income receivable		113			107
Finance receivable		97			95
Premiums receivable		1,189			1,119
Reinsurance receivable		685			680
Prepaid reinsurance premiums		15			15
Deferred policy acquisition costs		421			400
Property and equipment, net, for company use (accumulated depreciation: 2005—$219; 2004—$206)		164			156
Other assets		79			75
Separate accounts		489			477

Total assets	$	16,024		$	16,107


Liabilities
Insurance reserves
Losses and loss expense	$	3,608		$	3,549
Life policy reserves		1,286			1,194
Unearned premiums		1,610			1,539
Other liabilities		424			474
Deferred income tax		1,684			1,834
Notes payable		0			0
6.125% senior debenture due 2034		371			371
6.90% senior debenture due 2028		28			420
6.92% senior debenture due 2028		392			0
Separate accounts		489			477

Total liabilities		9,892			9,858


Shareholders’ equity
Common stock, par value-$2 per share; authorized: 2005 500 million shares, 2004- 200 million shares; issued: 2005-194 million shares, 2004-185 million shares		389			370
Paid-in capital		964			618
Retained earnings		1,894			2,057
Accumulated other comprehensive income-unrealized gains on investments and derivatives		3,505			3,787
Treasury stock at cost (2005—19 million shares, 2004—18 million shares)		(620	)		(583	)

Total shareholders’ equity		6,132			6,249

Total liabilities and shareholders’ equity	$	16,024		$	16,107

Cincinnati Financial Corporation

10-Year Net Income Reconciliation


	Years ended December 31,
(Dollars in millions except per share data)	2004			2003			2002			2001			2000			1999			1998			1997			1996			1995

Net income	$	584		$	374		$	238		$	193		$	118		$	255		$	242		$	299		$	224		$	227
One-time item		0			15			0			0			(25	)		0			0			0			0			0
Net income before one-time item	$	584		$	359		$	238		$	193		$	143		$	255		$	242		$	299		$	224		$	227
Net realized investment gains and losses		60			(27	)		(62	)		(17	)		(2	)		0			43			45			31			20

Operating income before one-time item	$	524		$	386		$	300		$	210		$	145		$	255		$	199		$	254		$	193		$	207
Less catastrophe losses		(96	)		(63	)		(57	)		(42	)		(33	)		(24	)		(61	)		(17	)		(42	)		(18	)

Operating income before catastrophe losses and one-time item	$	620		$	449		$	357		$	252		$	178		$	279		$	260		$	271		$	235		$	225

Diluted per share data
Net income	$	3.28		$	2.10		$	1.32		$	1.08		$	0.67		$	1.37		$	1.28		$	1.61		$	1.17		$	1.19
One-time item		0.00			0.09			0.00			0.00			(0.14	)		0.00			0.00			0.00			0.00			0.00
Net income before one-time item	$	3.28		$	2.01		$	1.32		$	1.07		$	0.81		$	1.37		$	1.28		$	1.61		$	1.17		$	1.19
Net realized investment gains and losses		0.35			(0.15	)		(0.34	)		(0.10	)		(0.01	)		0.00			0.23			0.26			0.16			0.10

Operating income before one-time item	$	2.93		$	2.16		$	1.67		$	1.17		$	0.82		$	1.37		$	1.05		$	1.35		$	1.01		$	1.09
Less catastrophe losses		(0.54	)		(0.35	)		(0.31	)		(0.23	)		(0.18	)		(0.13	)		(0.32	)		(0.13	)		(0.33	)		(0.14	)

Operating income before catastrophe losses and one-time item	$	3.47		$	2.51		$	1.98		$	1.40		$	1.00		$	1.50		$	1.37		$	1.49		$	1.35		$	1.23


Return on equity
Return on average equity		9.4	%		6.3	%		4.1	%		3.2	%		2.1	%		4.6	%		4.7	%		7.6	%		7.7	%		9.9	%
One-time item		0.0			(0.3	)		0.0			0.0			0.4			0.0			0.0			0.0			0.0			0.0

Return on average equity before one-time item		9.4	%		6.0	%		4.1	%		3.2	%		2.5	%		4.6	%		4.7	%		7.6	%		7.7	%		9.9	%


Return on equity based on comprehensive income
ROE based on comprehensive income		4.6	%		13.8	%		(4.0	%)		2.5	%		13.1	%		1.9	%		19.6	%		42.6	%		20.3	%		34.2	%
One-time item		0.0			(0.3	)		0.0			0.0			0.4			0.0			0.0			0.0			0.0			0.0

ROE based on comprehensive income before one-time item		4.6	%		13.5	%		(4.0	%)		2.5	%		13.5	%		1.9	%		19.6	%		42.6	%		20.3	%		34.2	%


Investment income, net of expenses	$	492		$	465		$	445		$	421		$	415		$	387		$	368		$	349		$	327		$	300
BOLI		0			0			0			0			(5	)		0			0			0			0			0

Investment income before BOLI	$	492		$	465		$	445		$	421		$	410		$	387		$	368		$	349		$	327		$	300

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

Cincinnati Financial Corporation

Quarterly Net Income Reconciliation


	Three months ended																			Six months ended						Nine months ended				Twelve months ended
(In millions except per share data)	12/31/2005	9/30/2005	6/30/2005			3/31/2005			12/31/2004			9/30/2004			6/30/2004			3/31/2004		6/30/2005			6/30/2004			9/30/2005	9/30/2004			12/31/2005	12/31/2004

Net income			$	158		$	144		$	192		$	90		$	155		$	146	$	302		$	301			$	392			$	584
One-time item				0			0			0			0			0			0		0			0				0				0
Net income before one-time item			$	158		$	144		$	192		$	90		$	155		$	146	$	302		$	301			$	392			$	584
Net realized investment gains and losses				8			6			24			(5	)		36			4		14			40				36				60

Operating income before one-time item			$	150		$	138		$	168		$	95		$	119		$	142	$	288		$	261			$	356			$	524
Less catastrophe losses				(9	)		(2	)		(10	)		(56	)		(30	)		0		(11	)		(30	)			(86	)			(96	)

Operating income before catastrophe losses and one-time item			$	159		$	140		$	178		$	151		$	149		$	142	$	299		$	291			$	442			$	620

Diluted per share data
Net income			$	0.89		$	0.81		$	1.09		$	0.50		$	0.87		$	0.82	$	1.70		$	1.77			$	2.30			$	3.28
One-time item				0.00			0.00			0.00			0.00			0.00			0.00		0.00			0.00				0.00				0.00
Net income before one-time item			$	0.89		$	0.81		$	1.09		$	0.50		$	0.87		$	0.82	$	1.70		$	1.77			$	2.30			$	3.28
Net realized investment gains and losses				0.05			0.03			0.14			(0.03	)		0.20			0.03		0.08			0.24				0.21				0.35

Operating income before one-time item			$	0.84		$	0.78		$	0.95		$	0.53		$	0.67		$	0.79	$	1.62		$	1.53			$	2.09			$	2.93
Less catastrophe losses				(0.05	)		(0.01	)		(0.06	)		(0.31	)		(0.17	)		0.00		(0.06	)		(0.18	)			(0.51	)			(0.54	)

Operating income before catastrophe losses and one-time item			$	0.89		$	0.79		$	1.10		$	0.84		$	0.84		$	0.79	$	1.68		$	1.71			$	2.60			$	3.47

Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.

Cincinnati Insurance Group

GAAP Statements of Income


	For the Three Months Ended June 30,												For the Six Months Ended June 30,
	2005			2004			Change			% Change			2005			2004			Change			% Change

Revenues:
Premiums earned:
Property casualty	$	807,470,314		$	757,179,115		$	50,291,199			6.64		$	1,602,171,328		$	1,511,077,308		$	91,094,020			6.03
Life		0			0			0			NA			0			0			0			NA
Accident health		0			0			0			NA			0			0			0			NA
Premiums ceded		(42,791,656	)		(40,403,051	)		(2,388,605	)		(5.91	)		(84,348,733	)		(78,646,281	)		(5,702,452	)		(7.25	)
Total premiums earned		764,678,658			716,776,064			47,902,594			6.68			1,517,822,595			1,432,431,027			85,391,568			5.96
Investment income		82,982,613			65,987,116			16,995,497			25.76			163,734,128			130,432,779			33,301,349			25.53
Realized gain on investments		9,414,823			179,354,949			(169,940,126	)		(94.75	)		15,467,723			187,482,942			(172,015,219	)		(91.75	)
Other income		722,052			751,428			(29,376	)		(3.91	)		1,650,935			1,496,911			154,024			10.29
Total revenues	$	857,798,146		$	962,869,557		$	(105,071,411	)		(10.91	)	$	1,698,675,381		$	1,751,843,659		$	(53,168,278	)		(3.03	)

Benefits & expenses:
Losses & policy benefits	$	455,193,701		$	482,394,308		$	(27,200,607	)		(5.64	)	$	958,955,510		$	906,248,054		$	52,707,456			5.82
Reinsurance recoveries		(19,742,198	)		(41,679,481	)		21,937,283			52.63			(65,657,710	)		(53,616,903	)		(12,040,807	)		(22.46	)
Commissions		157,079,211			142,141,041			14,938,170			10.51			299,223,059			295,968,362			3,254,697			1.10
Other operating expenses		63,597,860			57,733,890			5,863,970			10.16			121,970,560			110,852,517			11,118,043			10.03
Interest expense		0			0			0			NA			0			0			0			NA
Taxes, licenses & fees		16,534,001			18,504,707			(1,970,706	)		(10.65	)		32,310,566			35,962,601			(3,652,035	)		(10.16	)
Incr deferred acq expense		(5,422,878	)		(3,534,923	)		(1,887,955	)		(53.41	)		(14,041,675	)		(19,681,035	)		5,639,360			28.65
Other expenses		2,187,901			3,213,239			(1,025,338	)		(31.91	)		6,035,443			6,042,676			(7,233	)		(0.12	)
Total expenses	$	669,427,598		$	658,772,781		$	10,654,817			1.62		$	1,338,795,753		$	1,281,776,272		$	57,019,481			4.45
Income before income taxes	$	188,370,548		$	304,096,776		$	(115,726,228	)		(38.06	)	$	359,879,628		$	470,067,387		$	(110,187,759	)		(23.44	)

Provision for income taxes:
Current operating income	$	52,137,573		$	(7,465,339	)	$	59,602,912			798.40		$	103,005,087		$	35,536,740		$	67,468,347			189.86
Current realized investments gains and losses		3,463,484			62,774,233			(59,310,749	)		(94.48	)		5,413,703			65,619,029			(60,205,326	)		(91.75	)
Deferred		(2,740,809	)		41,805,666			(44,546,475	)		(106.56	)		(7,851,378	)		45,332,465			(53,183,843	)		(117.32	)
Total income taxes	$	52,860,248		$	97,114,560		$	(44,254,312	)		(45.57	)	$	100,567,412		$	146,488,234		$	(45,920,822	)		(31.35	)

Net income	$	135,510,300		$	206,982,216		$	(71,471,916	)		(34.53	)	$	259,312,216		$	323,579,153		$	(64,266,937	)		(19.86	)

Cincinnati Insurance Group

Statutory Income Statements


	For the Three Months Ended June 30,							For the Six Months Ended June 30,
	2005		2004		% Change			2005		2004		% Change

Underwriting income
Net premiums written	$	790,765,652	$	734,015,916		7.73		$	1,587,508,386	$	1,524,030,841		4.17
Unearned premiums increase		26,086,995		17,239,852					69,685,791		91,599,814
Earned premiums		764,678,658		716,776,064		6.68			1,517,822,595		1,432,431,027		5.96

Losses incurred	$	358,805,024	$	367,879,976		(2.47	)	$	737,257,505	$	708,326,787		4.08
Allocated loss expenses incurred		39,571,544		36,040,113		9.80			75,307,150		71,436,340		5.42
Unallocated loss expenses incurred		37,074,934		36,794,738		0.76			80,733,145		72,868,024		10.79
Other underwriting expenses incurred		232,023,269		214,565,445		8.14			440,223,939		429,674,013		2.46
Workers compensation dividend incurred		1,743,134		3,378,309		(48.40	)		5,136,069		6,097,741		(15.77	)

Total underwriting deductions	$	669,217,904	$	658,658,581		1.60		$	1,338,657,808	$	1,288,402,904		3.90

Net underwriting gain (loss)	$	95,460,753	$	58,117,484		64.25		$	179,164,787	$	144,028,123		24.40

Investment income
Gross investment income earned	$	84,001,241	$	66,593,460		26.14		$	165,622,151	$	131,479,550		25.97
Net investment income earned		82,982,614		65,986,594		25.76			163,734,128		130,431,653		25.53
Net realized capital gains		9,749,866		177,734,335		(94.51	)		21,933,169		185,319,769		(88.16	)
Net investment gains (excl. subs)	$	92,732,479	$	243,720,929		(61.95	)	$	185,667,298	$	315,751,422		(41.20	)
Dividend from subsidiary
Net investment gains	$	92,732,479	$	243,720,929		(61.95	)	$	185,667,298	$	315,751,422		(41.20	)

Other income	$	292,286	$	946,402		(69.12	)	$	770,562	$	1,575,880		(51.10	)

Net income before federal income taxes	$	188,485,519	$	302,784,815		(37.75	)	$	365,602,646	$	461,355,424		(20.75	)
Federal and foreign income taxes incurred	$	55,601,056	$	55,308,893		0.53		$	108,418,790	$	101,155,769		7.18

Net income (statutory)	$	132,884,463	$	247,475,922		(46.30	)	$	257,183,857	$	360,199,655		(28.60	)

* 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.

Cincinnati Insurance Group — Consolidated

Statutory Quarterly Analysis
(Based on reported data — see Page 23 for adjusted data)



(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/05	9/30/05	6/30/05			3/31/05			12/31/04			9/30/04			6/30/04			3/31/04			6/30/05			6/30/04			9/30/05	9/30/04			12/31/05	12/31/04

Net premiums written			$	791		$	797		$	723		$	750		$	734		$	790		$	1,588		$	1,524			$	2,274			$	2,997
Net premiums earned				765			753			754			733			717			716			1,518			1,432				2,166				2,919
Losses paid				336			345			381			360			328			298			681			625				985				1,366
Loss reserve change				23			33			(67	)		70			40			43			56			83				154				86
Total losses incurred			$	359		$	378		$	314		$	430		$	368		$	341		$	737		$	708			$	1,139			$	1,452
Allocated loss expense paid				29			25			31			27			26			26			54			52				78				110
Allocated loss expense reserve change				10			11			6			10			11			10			21			20				30				36
Total allocated loss expense incurred			$	39		$	36		$	37		$	37		$	37		$	36		$	75		$	72			$	108			$	146
Unallocated loss expense paid				37			34			46			32			36			32			71			68				100				146
Unallocated loss expense reserve change				0			10			2			3			1			4			10			5				8				10
Total unallocated loss expense incurred			$	37		$	44		$	48		$	35		$	37		$	36		$	81		$	73			$	108			$	156
Underwriting expenses incurred				234			212			222			220			218			218			445			436				656				878

Underwriting profit (loss)			$	96		$	83		$	133		$	11		$	57		$	85		$	180		$	143			$	155			$	287

Loss Detail
Losses $1 million or more			$	28		$	43		$	12		$	27		$	17		$	42		$	71		$	59			$	86			$	97
Losses $250 thousand to $1 million				36			32			33			29			46			39			68			85				113				146
Development and case reserve increases of $250,000 or more				40			36			44			35			42			31			76			73				109				153
Large losses subtotal			$	104		$	111		$	89		$	91		$	105		$	112		$	215		$	217			$	308			$	396
IBNR incurred				14			13			18			12			17			13			27			29				41				59
Catastrophe losses incurred				15			2			16			86			46			0			17			47				133				149
Remaining incurred				226			252			190			241			201			215			478			416				657				848
Total losses incurred			$	359		$	378		$	313		$	430		$	369		$	340		$	737		$	709			$	1,139			$	1,452

Ratio Data
Loss ratio				46.9	%		50.3	%		41.6	%		58.7	%		51.3	%		47.6	%		48.6	%		49.4	%			52.6	%			49.7	%
Allocated loss expense ratio				5.2			4.7			4.9			5.1			5.0			4.9			5.0			5.0				5.0				5.0
Unallocated loss expense ratio				4.8			5.8			6.4			4.7			5.1			5.0			5.3			5.1				5.0				5.3
Net underwriting expense ratio				29.6			26.6			30.7			29.4			29.7			27.6			28.1			28.6				28.9				29.3
Statutory combined ratio				86.5	%		87.4	%		83.6	%		97.9	%		91.1	%		85.1	%		87.0	%		88.1	%			91.5	%			89.3	%
Statutory combined ratio excluding catastrophes				84.6	%		87.1	%		81.6	%		86.2	%		84.7	%		85.0	%		85.8	%		84.8	%			85.3	%			84.3	%

Loss Ratio
Losses $1 million or more				3.6	%		5.7	%		1.5	%		3.6	%		2.3	%		5.9	%		4.7	%		4.1	%			4.0	%			3.3	%
Losses $250 thousand to $1 million				4.8			4.3			4.4			3.9			6.4			5.4			4.5			5.9				5.2				5.0
Development and case reserve increases of $250,000 or more				5.2			4.7			5.9			4.9			5.8			4.3			5.0			5.1				5.0				5.2
Large losses subtotal				13.6	%		14.7	%		11.8	%		12.4	%		14.5	%		15.6	%		14.2	%		15.1	%			14.2	%			13.5	%
IBNR incurred				1.8			1.8			2.4			1.6			2.3			1.7			1.8			2.0				1.9				2.0
Total catastrophe losses incurred				1.9			0.3			2.1			11.8			6.5			0.1			1.1			3.3				6.1				5.1
Remaining incurred				29.6			33.5			25.3			32.9			28.0			30.0			31.5			29.1				30.4				29.0
Total loss ratio				46.9	%		50.3	%		41.6	%		58.7	%		51.3	%		47.4	%		48.6	%		49.5	%			52.6	%			49.6	%

Loss Claim Count
Losses $1 million or more				17			15			9			17			11			27			32			38				55				64
Losses $250 thousand to $1 million				93			73			84			76			103			91			166			194				270				354
Development and case reserve increases of $250,000 or more				61			67			79			76			70			59			128			129				205				284
Large losses subtotal				171			155			172			169			184			177			326			361				530				702
Total catastrophe losses incurred				1,158			1,258			3,275			6,144			4,758			928			2,416			5,686				11,830				15,105
Remaining incurred				66,262			75,040			65,148			66,802			67,488			85,588			141,302			153,076				219,878				285,026
Total				67,591			76,453			68,595			73,115			72,430			86,693			144,044			159,123				232,238				300,833

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

NM — Not meaningful

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

Cincinnati Insurance Group — Commercial Lines

Statutory Quarterly Analysis
(Based on reported data — see Page 24 for adjusted data)



(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/05	9/30/05	6/30/05			3/31/05			12/31/04			9/30/04			6/30/04			3/31/04			6/30/05			6/30/04			9/30/05	9/30/04			12/31/05	12/31/04

Net premiums written			$	567		$	629		$	532		$	532		$	512		$	610		$	1,195		$	1,122			$	1,654			$	2,186
Net premiums earned				563			551			551			537			520			518			1,114			1,038				1,575				2,126
Losses paid				214			219			246			228			203			193			434			396				624				870
Loss reserve change				32			51			(45	)		50			21			28			84			49				98				54
Total losses incurred			$	246		$	270		$	201		$	278		$	224		$	221		$	518		$	445			$	722			$	924
Allocated loss expense paid				26			22			27			24			23			23			48			46				70				97
Allocated loss expense reserve change				10			10			2			9			10			9			20			19				28				30
Total allocated loss expense incurred			$	36		$	32		$	29		$	33		$	33		$	32		$	68		$	65			$	98			$	127
Unallocated loss expense paid				25			22			30			21			23			21			48			45				65				95
Unallocated loss expense reserve change				1			10			3			2			1			3			11			3				5				8
Total unallocated loss expense incurred			$	26		$	32		$	33		$	23		$	24		$	24		$	59		$	48			$	70			$	103
Underwriting expenses incurred				165			156			166			159			155			163			321			318				477				643

Underwriting profit (loss)			$	90		$	61		$	122		$	44		$	84		$	78		$	148		$	162			$	208			$	329

Loss Detail
Losses $1 million or more			$	26		$	43		$	8		$	23		$	14		$	35		$	68		$	49			$	72			$	80
Losses $250 thousand to $1 million				29			22			23			19			33			28			51			61				80				103
Development and case reserve increases of $250,000 or more				38			29			38			32			36			27			67			63				95				133
Large losses subtotal			$	93		$	94		$	69		$	74		$	83		$	90		$	186		$	173			$	247			$	316
IBNR incurred				12			12			26			11			14			11			24			26				36				63
Catastrophe losses incurred				2			6			7			48			15			1			9			16				64				72
Remaining incurred				139			159			99			145			112			118			298			230				375				473
Total losses incurred			$	246		$	271		$	201		$	278		$	224		$	220		$	517		$	445			$	722			$	924

Ratio Data
Loss ratio				43.8	%		49.1	%		36.5	%		51.7	%		43.1	%		42.6	%		46.4	%		42.8	%			45.9	%			43.4	%
Allocated loss expense ratio				6.4			5.8			5.3			6.2			6.2			6.2			6.1			6.2				6.2				6.0
Unallocated loss expense ratio				4.6			5.9			6.0			4.2			4.6			4.7			5.2			4.6				4.5				4.9
Net underwriting expense ratio				29.1			24.7			31.2			29.9			30.2			26.8			26.8			28.3				28.8				29.4
Statutory combined ratio				83.9	%		85.5	%		79.0	%		92.0	%		84.1	%		80.3	%		84.5	%		81.9	%			85.4	%			83.7	%
Statutory combined ratio excluding catastrophes				83.5	%		84.4	%		77.8	%		83.0	%		81.1	%		80.1	%		83.8	%		80.4	%			81.3	%			80.3	%

Loss Ratio
Losses $1 million or more				4.5	%		7.8	%		1.5	%		4.3	%		2.6	%		6.8	%		6.1	%		4.7	%			4.6	%			3.8	%
Losses $250 thousand to $1 million				5.2			3.9			4.2			3.6			6.3			5.4			4.5			5.8				5.1				4.9
Development and case reserve increases of $250,000 or more				6.8			5.3			6.8			5.9			7.0			5.2			6.0			6.1				6.0				6.2
Large losses subtotal				16.5	%		17.0	%		12.5	%		13.8	%		15.9	%		17.4	%		16.6	%		16.6	%			15.7	%			14.9	%
IBNR incurred				2.2			2.2			4.8			2.0			2.8			2.2			2.2			2.5				2.3				3.0
Total catastrophe losses incurred				0.4			1.1			1.3			9.0			2.9			0.2			0.8			1.6				4.1				3.4
Remaining incurred				24.7			28.8			17.9			26.9			21.5			22.8			26.8			22.2				23.8				22.3
Total loss ratio				43.8	%		49.1	%		36.5	%		51.7	%		43.1	%		42.6	%		46.4	%		42.9	%			45.9	%			43.6	%

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

NM — Not meaningful

Cincinnati Insurance Group — Personal Lines

Statutory Quarterly Analysis
(Based on reported data — see Page 25 for adjusted data)



(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/05	9/30/05	6/30/05			3/31/05			12/31/04			9/30/04			6/30/04			3/31/04			6/30/05			6/30/04			9/30/05	9/30/04			12/31/05	12/31/04

Net premiums written			$	224		$	168		$	191		$	217		$	222		$	180		$	393		$	402			$	620			$	811
Net premiums earned				202			202			203			196			197			197			404			394				590				793
Losses paid				122			126			134			132			125			105			247			229				362				496
Loss reserve change				(9	)		(18	)		(22	)		21			19			15			(27	)		34				54				33
Total losses incurred			$	113		$	108		$	112		$	153		$	144		$	120		$	220		$	263			$	416			$	529
Allocated loss expense paid				3			3			4			3			3			3			6			6				9				13
Allocated loss expense reserve change				1			1			4			1			1			1			1			1				2				6
Total allocated loss expense incurred			$	4		$	4		$	8		$	4		$	4		$	4		$	7		$	7			$	11			$	19
Unallocated loss expense paid				12			12			16			11			12			11			23			23				34				50
Unallocated loss expense reserve change				(1	)		0			(1	)		1			1			1			(1	)		2				3				2
Total unallocated loss expense incurred			$	11		$	12		$	15		$	12		$	13		$	12		$	22		$	25			$	37			$	52
Underwriting expenses incurred				69			56			56			61			63			55			125			118				179				236

Underwriting profit (loss)			$	5		$	22		$	12		$	(34	)	$	(27	)	$	6		$	30		$	(19	)		$	(53	)		$	(43	)

Loss Detail
Losses $1 million or more			$	2		$	0		$	3		$	3		$	3		$	7		$	2		$	10			$	13			$	17
Losses $250 thousand to $1 million				8			10			10			9			13			11			18			24				33				43
Development and case reserve increases of $250,000 or more				2			7			7			5			5			4			9			9				14				21
Large losses subtotal			$	12		$	17		$	20		$	17		$	21		$	22		$	29		$	43			$	60			$	81
IBNR incurred				1			1			(8	)		1			2			1			3			3				4				(4	)
Catastrophe losses incurred				12			(4	)		9			38			31			0			8			31				68				77
Remaining incurred				87			93			92			97			89			97			180			186				283				375
Total losses incurred			$	112		$	107		$	113		$	153		$	143		$	120		$	220		$	263			$	415			$	529

Ratio Data
Loss ratio				55.6	%		53.3	%		55.3	%		78.0	%		73.0	%		60.6	%		54.4	%		66.8	%			70.5	%			66.7	%
Allocated loss expense ratio				1.8			1.8			3.9			1.9			1.8			1.7			1.8			1.8				1.8				2.3
Unallocated loss expense ratio				5.5			5.7			7.4			6.3			6.7			6.0			5.6			6.3				6.3				6.6
Net underwriting expense ratio				30.7			33.2			29.4			28.2			28.6			30.4			31.8			29.4				28.9				29.0
Statutory combined ratio				93.6	%		94.0	%		96.0	%		114.4	%		110.1	%		98.7	%		93.6	%		104.3	%			107.5	%			104.6	%
Statutory combined ratio excluding catastrophes				87.4	%		96.0	%		91.8	%		95.1	%		94.4	%		98.9	%		91.5	%		96.5	%			96.0	%			94.9	%

Loss Ratio
Losses $1 million or more				1.1	%		0.0	%		1.7	%		1.7	%		1.5	%		3.7	%		0.6	%		2.6	%			2.3	%			2.1	%
Losses $250 thousand to $1 million				3.7			5.2			4.9			4.7			6.7			5.4			4.4			6.0				5.6				5.4
Development and case reserve increases of $250,000 or more				1.0			3.2			3.3			2.4			2.7			2.0			2.1			2.4				2.4				2.6
Large losses subtotal				5.8	%		8.4	%		9.9	%		8.8	%		10.9	%		11.1	%		7.1	%		11.0	%			10.3	%			10.1	%
IBNR incurred				0.6			0.7			(3.9	)		0.6			1.1			0.6			0.7			0.8				0.7				(0.5	)
Total catastrophe losses incurred				6.2			(2.0	)		4.2			19.3			15.7			(0.2	)		2.1			7.8				11.6				9.7
Remaining incurred				42.9			46.2			45.2			49.4			45.3			49.1			44.5			47.2				48.0				47.2
Total loss ratio				55.5	%		53.3	%		55.4	%		78.1	%		73.0	%		60.6	%		54.4	%		66.8	%			70.6	%			66.5	%

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

NM — Not meaningful

Cincinnati Insurance Group

Direct Written Premiums by Line of Business for the Six Months Ended June 30, 2005

(Dollars in millions)


							Comm								06/30/05		06/30/04
	Home-		Pers		Comm		Multi-		Work		Other		All		Agency		Agency		Percent
State	owner		Auto		Auto		Peril		Comp		Liability		Other		Direct		Direct		Change

AL	$	10.1	$	8.7	$	4.1	$	10.5	$	0.5	$	6.4	$	4.6	$	44.9	$	40.7		10.1
AZ		—		—		4.6		4.2		0.1		3.6		1.3		13.8		11.9		16.7
AR		1.6		1.8		3.4		7.0		3.0		4.2		2.6		23.6		25.2		(6.1	)
FL		7.5		6.5		6.2		11.2		1.2		12.0		8.2		52.8		43.7		20.7
GA		11.8		16.4		9.8		17.2		6.0		8.8		6.4		76.4		68.2		12.1
IL		8.8		15.8		18.4		40.5		30.2		23.4		17.0		154.1		156.1		(1.3	)
IN		13.8		18.3		16.2		31.5		17.2		15.7		11.1		123.8		123.4		0.4
IA		2.1		2.8		5.0		11.0		11.0		7.9		4.5		44.3		41.9		6.1
KS		3.6		3.1		2.2		4.9		2.9		2.5		2.2		21.4		21.2		1.6
KY		6.7		11.1		7.1		12.6		1.5		7.7		5.7		52.4		49.9		5.2
MD		0.5		—		4.0		3.6		3.7		4.0		1.7		17.5		14.9		17.5
MI		9.3		9.3		11.1		26.1		10.7		11.7		7.9		86.2		91.4		(5.6	)
MN		2.9		4.8		6.6		13.2		3.8		9.6		5.2		46.1		41.9		9.9
MO		2.9		2.4		5.7		14.6		6.5		5.5		5.4		43.0		44.3		(2.9	)
MT		—		—		3.7		5.2		—		2.9		1.7		13.5		12.0		12.5
NE		1.0		1.2		2.5		5.1		4.3		2.9		1.5		18.4		16.9		9.1
NY		—		—		4.2		7.4		1.0		7.7		2.0		22.3		15.1		46.9
NC		0.7		1.3		12.0		23.5		11.0		11.8		7.3		67.6		58.3		15.9
OH		45.7		83.7		44.3		86.2		—		57.1		37.5		354.5		355.9		(0.4	)
PA		2.9		4.4		17.1		27.6		29.9		12.6		9.1		103.6		94.9		9.0
SC		—		—		4.3		7.5		2.5		3.4		2.2		19.9		16.8		18.0
TN		3.7		4.4		9.1		14.1		6.0		9.3		5.1		51.7		46.9		10.5
VT		0.4		0.5		1.5		2.6		3.4		1.4		1.2		11.0		9.7		13.9
VA		3.7		5.3		12.0		18.7		9.2		8.2		6.6		63.7		63.9		(0.4	)
WV		0.4		—		3.0		5.2		—		2.3		1.6		12.5		11.5		8.9
WI		4.3		7.0		8.1		17.1		15.6		10.7		6.5		69.2		65.6		5.5
All Other		0.7		0.9		8.1		12.5		6.2		9.0		6.0		43.4		35.8		(0.2	)

Total Agency Direct	$	145.1	$	209.7	$	234.3	$	440.8	$	187.4	$	262.3	$	172.1	$	1,651.6	$	1,578.0		4.7
Other Direct		—		0.6		0.4		0.4		4.8		0.3		0.8		7.3		9.0		(19.0	)

Total Direct	$	145.1	$	210.3	$	234.7	$	441.2	$	192.2	$	262.6	$	172.9	$	1,658.9	$	1,587.0		4.5

Cincinnati Insurance Group

11-Year Property Casualty Data — Consolidated



(Dollars in millions)	Years ended December 31,
	2004			2003			2002			2001			2000			1999			1998			1997			1996			1995			1994

Premiums
Adjusted written premiums (statutory)*	$	3,026		$	2,789		$	2,496		$	2,188		$	1,936		$	1,681		$	1,558		$	1,472		$	1,384		$	1,296		$	1,191
Codification		0			0			0			402			(55	)		0			0			0			0			0			0
Written premium adjustment — statutory only		(29	)		26			117			0			0			0			0			0			0			0			0

Reported written premiums (statutory)**		2,997			2,815			2,613			2,590			1,881			1,681			1,558			1,472			1,384			1,296			1,191
Unearned premiums change		(78	)		(162	)		(220	)		(517	)		(53	)		(23	)		(15	)		(18	)		(17	)		(33	)		(21	)

Earned premiums (GAAP)	$	2,919		$	2,653		$	2,393		$	2,073		$	1,828		$	1,658		$	1,543		$	1,454		$	1,367		$	1,263		$	1,170
Year-over-year growth rate:
Adjusted written premiums (statutory)		8.5	%		11.7	%		14.1	%		13.0	%		15.2	%		7.9	%		5.8	%		6.4	%		6.8	%		8.8	%		6.0	%
Written premiums (statutory)		6.5	%		7.7	%		0.9	%		37.7	%		11.9	%		7.9	%		5.8	%		6.4	%		6.8	%		8.8	%		6.0	%
Earned premiums		10.0	%		10.9	%		15.4	%		13.4	%		10.3	%		7.5	%		6.1	%		6.4	%		8.2	%		7.9	%		7.1	%

Statutory combined ratio
Reported statutory combined ratio*		89.4	%		94.2	%		98.4	%		99.5	%		112.5	%		100.4	%		104.2	%		98.3	%		103.5	%		99.9	%		100.8	%
Codification		0.0			0.0			0.0			4.1			(0.9	)		0.0			0.0			0.0			0.0			0.0			0.0
Written premium adjustment — statutory only		nm			nm			1.2			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
One-time item		0.0			0.8			0.0			0.0			(1.7	)		0.0			0.0			0.0			0.0			0.0			0.0

Statutory combined ratio (adjusted)		89.4	%		95.0	%		99.6	%		103.6	%		109.9	%		100.4	%		104.2	%		98.3	%		103.5	%		99.9	%		100.8	%

Less catastrophe losses		5.1			3.6			3.6			3.1			2.7			2.5			6.1

Statutory combined ratio excluding catastrophe losses (adjusted)		84.3	%		91.4	%		96.0	%		100.5	%		107.2	%		97.9	%		98.1	%

Reported commission expense ratio*		19.2	%		17.6	%		15.9	%		13.9	%		17.4	%		17.4	%		17.6	%
Codification		0.0			0.0			0.0			2.6			(0.5	)		0.0			0.0
Written premium adjustment — statutory only		nm			nm			0.8			0.0			0.0			0.0			0.0
One-time item		0.0			0.0			0.0			0.0			0.0			0.0			0.0

Commission expense ratio (adjusted)		19.2	%		17.6	%		16.7	%		16.5	%		16.9	%		17.4	%		17.6	%

Reported other expense ratio*		10.1	%		8.9	%		9.6	%		8.7	%		12.6	%		11.4	%		11.9	%
Codification		0.0			0.0			0.0			1.5			(0.4	)		0.0			0.0
Written premium adjustment — statutory only		nm			nm			0.4			0.0			0.0			0.0			0.0
One-time item		0.0			0.8			0.0			0.0			(1.7	)		0.0			0.0

Other expense ratio (adjusted)		10.1	%		9.7	%		10.0	%		10.2	%		10.5	%		11.4	%		11.9	%

Reported statutory expense ratio*		29.3	%		26.5	%		25.5	%		22.6	%		30.0	%		28.8	%		29.5	%
Codification		0.0			0.0			0.0			4.1			(0.9	)		0.0			0.0
Written premium adjustment — statutory only		nm			nm			1.2			0.0			0.0			0.0			0.0
One-time item		0.0			0.8			0.0			0.0			(1.7	)		0.0			0.0

Statutory expense ratio (adjusted)		29.3	%		27.3	%		26.7	%		26.7	%		27.4	%		28.8	%		29.5	%



GAAP combined ratio
GAAP combined ratio		89.8	%		94.7	%		99.7	%		104.9	%		112.8	%		100.2	%		104.3	%		98.4	%		103.6	%		100.1	%		100.9	%
One-time item		0.0			0.8			0.0			0.0			(2.1	)		0.0			0.0			0.0			0.0			0.0			0.0

GAAP combined ratio before one-time item		89.8	%		95.5	%		99.7	%		104.9	%		110.7	%		100.2	%		104.3	%		98.4	%		103.6	%		100.1	%		100.9	%



Written premiums to surplus
Adjusted premiums to statutory surplus ratio		0.721			1.002			1.067			0.864
Written premium adjustment		(0.007	)		0.010			0.050			0.159

Reported premiums to statutory surplus ratio		0.714			1.012			1.117			1.023


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


*		Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

**		Prior to 2001, property casualty written premiums were recognized as they were billed throughout the policy period. Effective January 1, 2001, written premiums have been recognized on an annualized basis at the effective date of the policy. Written premiums for 2000 were reclassified to conform with the 2001 presentation; information was not readily available to reclassify earlier year statutory data. The growth rates in written premiums between 1999 and 2000 are overstated because 1999 premiums are shown on a billed basis.

Cincinnati Insurance Group

6-Year Property Casualty Data — Commercial Lines



(Dollars in millions)	Years ended December 31,
	2004			2003			2002			2001			2000			1999

Premiums
Adjusted written premiums (statutory)*	$	2,209		$	2,009		$	1,795		$	1,551		$	1,326		$	1,100
Codification		0			0			0			276			(51	)		0
Written premium adjustment – statutory only		(23	)		22			110			0			0			0

Reported written premiums (statutory)**	$	2,186		$	2,031		$	1,905		$	1,827		$	1,275		$	1,100
Unearned premiums change		(60	)		(123	)		(182	)		(374	)		(43	)		(12	)

Earned premiums (GAAP)	$	2,126		$	1,908		$	1,723		$	1,453		$	1,232		$	1,088

Year-over-year growth rate:
Adjusted written premiums (statutory)		10.0	%		11.9	%		15.7	%		17.0	%		20.5	%		7.8	%
Written premiums (statutory)		7.6	%		6.6	%		4.3	%		43.3	%		15.9	%		7.8	%
Earned premiums		11.4	%		10.8	%		18.6	%		17.9	%		13.2	%		6.7	%

Statutory combined ratio
Reported statutory combined ratio*		83.7	%		90.9	%		95.3	%		96.7	%		117.2	%		101.2	%
Codification		0.0			0.0			0.0			4.0			(1.2	)		0.0
Written premium adjustment – statutory only		nm			nm			1.5			0.0			0.0			0.0
One-time item		0.0			0.7			0.0			0.0			(1.6	)		0.0

Statutory combined ratio (adjusted)		83.7	%		91.6	%		96.8	%		100.7	%		114.4	%		101.2	%

Less catastrophe losses		3.4			2.2			2.3			1.9			1.5			2.7

Statutory combined ratio excluding catastrophe losses (adjusted)		80.3	%		89.4	%		94.5	%		98.8	%		112.9	%		98.5	%


GAAP combined ratio
GAAP combined ratio		84.1	%		91.3	%		96.6	%		101.7	%		117.2	%		103.5	%
One-time item		0.0			0.8			0.0			0.0			(2.0	)		0.0

GAAP combined ratio before one-time item		84.1	%		92.1	%		96.6	%		101.7	%		115.2	%		103.5	%



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


*		Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

**		Prior to 2001, property casualty written premiums were recognized as they were billed throughout the policy period. Effective January 1, 2001, written premiums have been recognized on an annualized basis at the effective date of the policy. Written premiums for 2000 were reclassified to conform with the 2001 presentation; information was not readily available to reclassify earlier year statutory data. The growth rates in written premiums between 1999 and 2000 are overstated because 1999 premiums are shown on a billed basis.

Cincinnati Insurance Group

6-Year Property Casualty Data — Personal Lines



(Dollars in millions)	Years ended December 31,
	2004			2003			2002			2001			2000			1999

Premiums
Adjusted written premiums (statutory)*	$	817		$	780		$	701		$	637		$	610		$	581
Codification		0			0			0			126			(4	)		0
Written premium adjustment – statutory only		(6	)		4			7			0			0			0

Reported written premiums (statutory)**	$	811		$	784		$	708		$	763		$	606		$	581
Unearned premiums change		(18	)		(39	)		(38	)		(143	)		(10	)		(11	)

Earned premiums (GAAP)	$	793		$	745		$	670		$	620		$	596		$	570

Year-over-year growth rate:
Adjusted written premiums (statutory)		4.7	%		11.3	%		10.0	%		4.4	%		5.0	%		8.0	%
Written premiums (statutory)		3.4	%		10.7	%		(7.2	)%		25.9	%		4.3	%		8.0	%
Earned premiums		6.4	%		11.2	%		8.1	%		4.0	%		4.6	%		9.0	%

Statutory combined ratio
Reported statutory combined ratio*		104.6	%		102.9	%		106.5	%		105.9	%		110.6	%		97.8	%
Codification		0.0			0.0			0.0			4.6			(0.2	)		0.0
Written premium adjustment – statutory only		nm			nm			0.3			0.0			0.0			0.0
One-time item		0.0			1.0			0.0			0.0			(2.0	)		0.0

Statutory combined ratio (adjusted)		104.6	%		103.9	%		106.8	%		110.5	%		108.4	%		97.8	%

Less catastrophe losses		9.7			7.3			7.1			5.8			5.4			1.4

Statutory combined ratio excluding catastrophe losses (adjusted)		94.9	%		96.6	%		99.7	%		104.7	%		103.0	%		96.4	%


GAAP combined ratio
GAAP combined ratio		105.0	%		103.6	%		107.6	%		112.4	%		110.4	%		93.8	%
One-time item		0.0			1.1			0.0			0.0			(2.4	)		0.0

GAAP combined ratio before one-time item		105.0	%		104.7	%		107.6	%		112.4	%		108.0	%		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. nm — Not meaningful

*		Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

**		Prior to 2001, property casualty written premiums were recognized as they were billed throughout the policy period. Effective January 1, 2001, written premiums have been recognized on an annualized basis at the effective date of the policy. Written premiums for 2000 were reclassified to conform with the 2001 presentation; information was not readily available to reclassify earlier year statutory data. The growth rates in written premiums between 1999 and 2000 are overstated because 1999 premiums are shown on a billed basis.

Cincinnati Insurance Group

Quarterly Property Casualty Data — Consolidated



						Three months ended															Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/05	9/30/05	6/30/05			3/31/05			12/31/04			9/30/04			6/30/04			3/31/04			6/30/05			6/30/04			9/30/05	9/30/04			12/31/05	12/31/04

Premiums
Adjusted written premiums (statutory)			$	781		$	787		$	748		$	750		$	761		$	767		$	1,568		$	1,528			$	2,278			$	3,026
Written premium adjustment – statutory only				10			10			(25	)		0			(27	)		23			20			(4	)			(4	)			(29	)

Reported written premiums (statutory)*			$	791		$	797		$	723		$	750		$	734		$	790		$	1,588		$	1,524			$	2,274			$	2,997
Unearned premiums change				(26	)		(44	)		31			(17	)		(17	)		(74	)		(70	)		(92	)			(108	)			(78	)

Earned premiums			$	765		$	753		$	754		$	733		$	717		$	716		$	1,518		$	1,432			$	2,166			$	2,919

Statutory combined ratio
Reported statutory combined ratio*				86.6	%		87.4	%		83.6	%		97.9	%		91.2	%		85.1	%		86.9	%		88.1	%			91.4	%			89.4	%
Written premium adjustment – statutory only				nm			nm			nm			nm			nm			nm		nm			nm				nm				nm
One-time item				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0				0.0				0.0

Adjusted statutory combined ratio				86.6	%		87.4	%		83.6	%		97.9	%		91.2	%		85.1	%		86.9	%		88.1	%			91.4	%			89.4	%

Less catastrophe losses				2.0			0.3			2.0			11.7			6.5			0.1			1.1			3.3				6.1				5.1

Adjusted statutory combined ratio excluding catastrophe losses				84.6	%		87.1	%		81.6	%		86.2	%		84.7	%		85.0	%		85.8	%		84.8	%			85.3	%			84.3	%



Reported commission expense ratio*				19.3	%		16.8	%		19.7	%		19.9	%		18.9	%		18.3	%		18.0	%		18.6	%			19.0	%			19.2	%
Written premium adjustment – statutory only				nm			nm			nm			nm			nm			nm			nm			nm				nm				nm
One-time item				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0				0.0				0.0

Adjusted commission expense ratio				19.3	%		16.8	%		19.7	%		19.9	%		18.9	%		18.3	%		18.0	%		18.6	%			19.0	%			19.2	%


Reported other expense ratio*				10.3	%		9.8	%		11.0	%		9.5	%		10.8	%		9.3	%		10.0	%		10.0	%			9.8	%			10.1	%
Written premium adjustment – statutory only				nm			nm			nm			nm			nm			nm			nm			nm				nm				nm
One-time item				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0				0.0				0.0

Adjusted other expense ratio				10.3	%		9.8	%		11.0	%		9.5	%		10.8	%		9.3	%		10.0	%		10.0	%			9.8	%			10.1	%


Reported statutory expense ratio*				29.6	%		26.6	%		30.7	%		29.4	%		29.7	%		27.6	%		28.0	%		28.6	%			28.9	%			29.3	%
Written premium adjustment – statutory only				nm			nm			nm			nm			nm			nm			nm			nm				nm				nm
One-time item				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0				0.0				0.0

Adjusted statutory expense ratio				29.6	%		26.6	%		30.7	%		29.4	%		29.7	%		27.6	%		28.0	%		28.6	%			28.9	%			29.3	%



GAAP combined ratio
GAAP combined ratio				87.5	%		88.9	%		82.6	%		97.8	%		91.9	%		87.1	%		88.2	%		89.5	%			92.3	%			89.8	%
One-time item				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0				0.0				0.0

GAAP combined ratio before one-time item				87.5	%		88.9	%		82.6	%		97.8	%		91.9	%		87.1	%		88.2	%		89.5	%			92.3	%			89.8	%


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.

Cincinnati Insurance Group

Quarterly Property Casualty Data — Commercial Lines



						Three months ended															Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/05	9/30/05	6/30/05			3/31/05			12/31/04			9/30/04			6/30/04			3/31/04			6/30/05			6/30/04			9/30/05	9/30/04			12/31/05	12/31/04

Premiums
Adjusted written premiums (statutory)			$	557		$	617		$	555		$	530		$	537		$	587		$	1,174		$	1,124			$	1,656			$	2,209
Written premium adjustment — statutory only				9			12			(23	)		2			(25	)		23			21			(2	)			(2	)			(23	)

Reported written premiums (statutory)*			$	566		$	629		$	532		$	532		$	512		$	610		$	1,195		$	1,122			$	1,654			$	2,186
Unearned premiums change				(3	)		(78	)		19			5			8			(91	)		(81	)		(84	)			(79	)			(60	)

Earned premiums			$	563		$	551		$	551		$	537		$	520		$	519		$	1,114		$	1,038			$	1,575			$	2,126



Statutory combined ratio
Reported statutory combined ratio*				83.9	%		85.5	%		79.1	%		92.0	%		84.1	%		80.3	%		84.6	%		82.0	%			85.4	%			83.7	%
Written premium adjustment — statutory only			nm			nm			nm			nm			nm			nm			nm			nm				nm				nm
One-time item				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0				0.0				0.0

Adjusted statutory combined ratio				83.9	%		85.5	%		79.1	%		92.0	%		84.1	%		80.3	%		84.6	%		82.0	%			85.4	%			83.7	%

Less catastrophe losses				0.4			1.1			1.3			9.0			3.0			0.2			0.8			1.6				4.1				0.0

Adjusted statutory combined ratio excluding catastrophe losses				83.5	%		84.4	%		77.8	%		83.0	%		81.1	%		80.1	%		83.8	%		80.4	%			81.3	%			80.3	%


GAAP combined ratio
GAAP combined ratio				84.8	%		87.5	%		78.2	%		91.4	%		84.4	%		82.6	%		86.1	%		83.5	%			86.2	%			84.1	%
One-time item				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0				0.0				0.0

GAAP combined ratio before one-time item				84.8	%		87.5	%		78.2	%		91.4	%		84.4	%		82.6	%		86.1	%		83.5	%			86.2	%			84.1	%


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.

Cincinnati Insurance Group

Quarterly Property Casualty Data — Personal Lines



(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/2005	9/30/2005	6/30/2005			3/31/2005			12/31/2004			9/30/2004			6/30/2004			3/31/2004			6/30/2005			6/30/2004			9/30/2005	9/30/2004			12/31/2005	12/31/2004

Premiums
Adjusted written premiums (statutory)			$	223		$	170		$	194		$	218		$	224		$	180		$	393		$	404			$	623			$	817
Written premium adjustment — statutory only				1			(2	)		(3	)		(1	)		(2	)		0			(1	)		(2	)			(3	)			(6	)

Reported written premiums (statutory)*			$	224		$	168		$	191		$	217		$	222		$	180		$	392		$	402			$	620			$	811
Unearned premiums change				(22	)		34			12			(21	)		(25	)		17			8			(8	)			(30	)			(18	)

Earned premiums			$	202		$	202		$	203		$	196		$	197		$	197		$	404		$	394			$	590			$	793


Statutory combined ratio
Reported statutory combined ratio*				93.6	%		94.0	%		96.0	%		114.4	%		110.1	%		98.7	%		93.7	%		104.3	%			107.6	%			104.6	%
Written premium adjustment — statutory only			nm			nm			nm			nm			nm			nm			nm			nm				nm				nm
One-time item				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0				0.0				0.0

Adjusted statutory combined ratio				93.6	%		94.0	%		96.0	%		114.4	%		110.1	%		98.7	%		93.7	%		104.3	%			107.6	%			104.6	%

Less catastrophe losses				6.2			2.0			4.2			19.3			15.7			0.0			2.1			7.8				11.6				0.1

Adjusted statutory combined ratio excluding catastrophe losses				87.4	%		96.0	%		91.8	%		95.1	%		94.4	%		98.9	%		91.6	%		96.5	%			96.0	%			94.9	%


GAAP combined ratio
GAAP combined ratio				95.3	%		92.7	%		94.5	%		115.4	%		111.6	%		98.8	%		94.0	%		105.2	%			108.6	%			105.0	%
One-time item				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0				0.0				0.0

GAAP combined ratio before one-time item				95.3	%		92.7	%		94.5	%		115.4	%		111.6	%		98.8	%		94.0	%		105.2	%			108.6	%			105.0	%

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.

Cincinnati Insurance Group

Quarterly Property Casualty Data — By Line of Business



						Three months ended															Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/05	9/30/05	6/30/05			3/31/05			12/31/04			9/30/04			6/30/04			3/31/04			6/30/05			6/30/04			9/30/05	9/30/04			12/31/05	12/31/04

Commercial multi-peril:
Earned premiums			$	202		$	197		$	195		$	187		$	182		$	186		$	399		$	368			$	556			$	751
Loss and loss expenses ratio				57.3	%		72.2	%		62.6	%		72.4	%		56.8	%		57.7	%		64.7	%		57.2	%			62.4	%			62.4	%
Less catastrophe loss ratio				0.9			2.6			1.4			23.0			6.6			(0.7	)		1.8			2.9				9.6				7.5

Loss and loss expenses excluding catastrophe loss ratio				56.4	%		69.6	%		61.1	%		49.4	%		50.2	%		58.4	%		62.9	%		54.4	%			52.8	%			54.9	%


Workers compensation:
Earned premiums			$	82		$	79		$	80		$	80		$	78		$	75		$	161		$	153			$	233			$	313
Loss and loss expenses ratio				77.1	%		76.5	%		82.8	%		79.1	%		69.2	%		90.6	%		76.8	%		79.7	%			79.5	%			80.3	%
Less catastrophe loss ratio				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0				0.0				0.0

Loss and loss expenses excluding catastrophe loss ratio				77.1	%		76.5	%		82.8	%		79.1	%		69.2	%		90.6	%		76.8	%		79.7	%			79.5	%			80.3	%


Commercial auto:
Earned premiums			$	113		$	113		$	115		$	114		$	111		$	110		$	226		$	221			$	335			$	450
Loss and loss expenses ratio				58.8	%		57.9	%		51.9	%		59.6	%		53.1	%		44.7	%		58.4	%		48.9	%			52.6	%			52.4	%
Less Catastrophe loss ratio				0.2			0.0			0.3			1.0			0.5			(0.5	)		0.1			0.0				0.3				0.3

Loss and loss expenses excluding catastrophe loss ratio				58.6	%		57.9	%		51.6	%		58.6	%		52.6	%		45.2	%		58.3	%		48.9	%			52.3	%			52.1	%


Other liability:
Earned premiums			$	109		$	106		$	107		$	103		$	98		$	94		$	215		$	193			$	296			$	402
Loss and loss expenses ratio				39.3	%		39.1	%		(0.1	)%		37.2	%		45.9	%		34.4	%		39.2	%		40.2	%			39.2	%			28.8	%
Less catastrophe loss ratio				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0				0.0				0.0

Loss and loss expenses excluding catastrophe loss ratio				39.3	%		39.1	%		(0.1	)%		37.2	%		45.9	%		34.4	%		39.2	%		40.2	%			39.2	%			28.8	%


Personal auto:
Earned premiums			$	110		$	111		$	113		$	113		$	112		$	113		$	220		$	225			$	338			$	451
Loss and loss expenses ratio				61.5	%		60.6	%		71.2	%		63.9	%		62.9	%		66.3	%		61.0	%		64.6	%			64.4	%			66.1	%
Less catastrophe loss ratio				1.1			0.2			0.6			1.4			2.3			(0.2	)		0.6			1.0				1.1				1.0

Loss and loss expenses excluding catastrophe loss ratio				60.4	%		60.4	%		70.7	%		62.5	%		60.6	%		66.5	%		60.4	%		63.6	%			63.3	%			65.1	%


Homeowner:
Earned premiums			$	71		$	70		$	68		$	62		$	64		$	64		$	141		$	128			$	191			$	259
Loss and loss expenses ratio				73.3	%		64.0	%		68.3	%		130.7	%		119.1	%		68.8	%		68.7	%		94.0	%			106.0	%			96.1	%
Less catastrophe loss ratio				15.6			(7.2	)		10.1			55.8			43.1			(0.1	)		4.3			21.5				32.7				26.8

Loss and loss expenses excluding catastrophe loss ratio				57.7	%		71.2	%		58.2	%		74.9	%		76.0	%		68.9	%		64.4	%		72.5	%			73.3	%			69.3	%


Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts. The sum of quarterly amounts may not equal the full year as each is computed independently.

The Cincinnati Life Insurance Company

GAAP Statements of Income


	For the three months ended June 30,												For the six months ended June 30,
	2005			2004			Change			% Change			2005			2004			Change			% Change

Revenues:
Premiums earned:
Property casualty	$	0		$	0		$	0			NA		$	0		$	0		$	0			NA
Life		38,053,773			33,745,792			4,307,981			12.77			69,570,579			64,339,306			5,231,273			8.13
Accident health		1,436,094			1,392,820			43,274			3.11			3,089,251			2,973,784			115,467			3.88
Premiums ceded		(10,266,701	)		(8,165,891	)		(2,100,810	)		(25.73	)		(19,659,993	)		(15,674,427	)		(3,985,566	)		(25.43	)
Total premiums earned		29,223,166			26,972,721			2,250,445			8.34			52,999,837			51,638,663			1,361,174			2.64
Investment income		24,422,519			22,172,675			2,249,844			10.15			48,396,996			44,126,900			4,270,096			9.68
Realized investment gains and losses		5,352,141			4,465,280			886,861			19.86			7,644,838			4,698,869			2,945,969			62.70
Other income		846,798			753,783			93,015			12.34			1,594,320			1,483,565			110,755			7.47
Total revenues	$	59,844,624		$	54,364,459		$	5,480,165			10.08		$	110,635,991		$	101,947,997		$	8,687,994			8.52

Benefits & expenses:
Losses & policy benefits	$	44,534,290		$	43,364,973		$	1,169,317			2.70		$	79,180,808		$	81,170,391		$	(1,989,583	)		(2.45	)
Reinsurance recoveries		(18,810,323	)		(17,765,358	)		(1,044,965	)		(5.88	)		(29,570,229	)		(33,358,963	)		3,788,734			11.36
Commissions		8,696,258			8,067,609			628,649			7.79			16,992,069			15,412,238			1,579,831			10.25
Other operating expenses		6,726,436			6,794,170			(67,734	)		(1.00	)		11,264,457			12,443,398			(1,178,941	)		(9.47	)
Interest expense		0			0			0			NA			0			0			0			NA
Taxes, licenses & fees		1,073,625			967,678			105,947			10.95			2,151,112			2,084,414			66,698			3.20
Incr deferred acq expense		(2,032,577	)		(2,499,289	)		466,712			18.67			(4,782,772	)		(3,954,251	)		(828,521	)		(20.95	)
Other expenses		44			69			(25	)		(36.23	)		108			105			3			2.86
Total expenses	$	40,187,753		$	38,929,852		$	1,257,901			3.23		$	75,235,553		$	73,797,332		$	1,438,221			1.95

Income before income taxes	$	19,656,871		$	15,434,607		$	4,222,264			27.36		$	35,400,438		$	28,150,665		$	7,249,773			25.75

Provision for income taxes:
Current	$	3,031,405		$	1,476,390		$	1,555,015			105.33		$	6,245,875		$	5,784,353		$	461,522			7.98
Current capital gains/losses		1,873,249			1,562,848			310,401			19.86			2,675,693			1,644,604			1,031,089			62.70
Deferred		1,811,804			2,182,023			(370,219	)		(16.97	)		3,123,875			2,065,113			1,058,762			51.27
Total income taxes	$	6,716,458		$	5,221,261		$	1,495,197			28.64		$	12,045,443		$	9,494,070		$	2,551,373			26.87

Net income	$	12,940,413		$	10,213,346		$	2,727,067			26.70		$	23,354,995		$	18,656,595		$	4,698,400			25.18

The Cincinnati Life Insurance Company

Statutory Statements of Income


	For the three months ended June 30,									For the six months ended June 30,
	2005			2004			% Change				2005			2004			% Change

Net premiums written	$	50,826,408.30		$	47,635,868.48			6.70			$	100,310,028.60		$	78,646,215.80			27.55
Net investment income		24,422,518.82			22,172,674.91			10.15				48,396,996.07			44,126,900.04			9.68
Amortization of interest maintenance reserve		1,414,427.00			158,697.50			791.27				1,679,919.00			289,157.50			480.97
Commissions and expense allowances on reinsurance ceded		2,834,889.60			4,217,377.76			(32.78	)			6,452,441.57			8,441,717.89			(23.56	)
Income from fees associated with Separate Accounts		846,797.36			753,782.80			12.34				1,594,319.63			1,483,565.37			7.47

Total revenues	$	80,345,041.08		$	74,938,401.45			7.21			$	158,433,704.87		$	132,987,556.60			19.13

Death benefits and matured endowments	$	7,332,486.61		$	8,133,953.38			(9.85	)		$	15,022,527.94		$	15,391,041.94			(2.39	)
Annuity benefits		4,699,020.66			5,758,999.12			(18.41	)			7,767,445.31			10,754,892.68			(27.78	)
Disability benefits and benefits under accident and health contracts		521,623.60			490,986.41			6.24				562,209.61			1,005,718.41			(44.10	)
Surrender benefits and group conversions		3,730,233.58			4,593,509.42			(18.79	)			9,503,648.72			7,984,187.92			19.03
Interest and adjustments on deposit-type contract funds		2,751,374.83			2,214,791.27			24.23				5,023,109.51			4,077,637.94			23.19
Increase in aggregate reserves for life and accident and health contracts		40,627,409.96			29,789,854.87			36.38				77,628,755.97			46,341,508.67			67.51
Payments on supplementary contracts with life contingencies		75,156.91			150,170.54			(49.95	)			147,405.58			214,977.10			(31.43	)

Total benefit expenses	$	59,737,306.15		$	51,132,265.01			16.83			$	115,655,102.64		$	85,769,964.66			34.84

Commissions	$	8,696,258.57		$	8,067,608.55			7.79			$	16,992,069.38		$	15,412,237.66			10.25
General insurance expenses and taxes		7,904,098.10			7,517,650.66			5.14				15,818,695.39			15,156,971.62			4.37
Increase in loading on deferred and uncollected premiums		(1,309,051.35	)		(739,756.00	)		(76.96	)			(3,805,278.35	)		(2,304,843.00	)		(65.10	)
Net transfers to or (from) Separate Accounts		0.00			0.00			N/A				0.00			0.00			N/A
Other deductions		44.15			69.17			(36.17	)			107.96			105.49			2.34

Total operating expenses	$	15,291,349.47		$	14,845,572.38			3.00			$	29,005,594.38		$	28,264,471.77			2.62

Federal and Foreign Income Taxes Incurred		3,589,629.00			2,273,000.00			57.92				6,577,240.00			6,565,000.00			0.19


Net gain from operations before realized capital gains or (losses)	$	1,726,756.46		$	6,687,564.06			(74.18	)		$	7,195,767.85		$	12,388,120.17			(41.91	)

Net realized gains or (losses) net of capital gains tax		109,922.36			1,261,655.38			(91.29	)			1,320,603.67			1,101,764.97			19.86


Net Income (Statutory)	$	1,836,678.82		$	7,949,219.44			(76.89	)		$	8,516,371.52		$	13,489,885.14			(36.87	)


*		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.


	As of and for the six months ended June 30, 2005
								Earned
	Actual		Fair		Percent of			dividend
(Dollars in millions)	cost		value		fair value			income

Fifth Third Bancorp	$	283	$	2,996		42.4	%	$	51
ALLTEL Corporation		119		821		11.6			10
ExxonMobil Corporation		133		515		7.3			5
National City Corporation		171		335		4.7			7
The Procter & Gamble Company		99		300		4.2			3
PNC Financial Services Group, Inc.		62		256		3.6			5
Wyeth		57		192		2.7			2
U.S. Bancorp		109		165		2.3			3
Alliance Capital Management Holding L.P.		53		148		2.1			4
FirstMerit Corporation		54		140		2.0			3
Wells Fargo & Company		66		136		1.9			2
Johnson & Johnson		101		135		1.9			1
Piedmont Natural Gas Company, Inc.		62		133		1.9			1
Sky Financial Group, Inc.		91		131		1.9			2
All other common stock holdings		446		664		9.5			11

Total	$	1,906	$	7,067		100.0	%	$	110



(In millions)	Three months ended												Six months ended						Years ended December 31,
	6/30/05			3/31/05			6/30/04			3/31/04			6/30/05			6/30/04			2004			2003			2002			2001			2000			1999

Gross Written Premiums	$	64		$	62		$	59		$	43		$	126		$	102		$	230		$	173		$	244		$	122		$	157		$	421
Bank Owned Life Insurance (BOLI) Adjustment		0			—			0			—			0			—			(10	)		—			(34	)		—			(20	)		(303	)

Adjusted Gross Written Premiums	$	64		$	62		$	59		$	43		$	126		$	102		$	220		$	173		$	210		$	122		$	137		$	118


Insurance Expense	$	8		$	7		$	6		$	7		$	14		$	13		$	25		$	25		$	27		$	25		$	20		$	19


Expense Ratio		10.7	%		10.9	%		10.9	%		15.3	%		10.8	%		12.7	%		11.1	%		14.8	%		10.9	%		20.6	%		12.9	%		4.4	%
Expense Ratio based on Adjusted Gross Written Premium		10.7	%		10.9	%		10.9	%		15.3	%		10.8	%		12.7	%		11.6	%		14.8	%		12.6	%		20.6	%		14.8	%		15.7	%