8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report:  April 28, 2010

(Date of earliest event reported)

CINCINNATI FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Ohio	0-4604	31-0746871
(State or other jurisdiction of incorporation)	(Commission File Number)	(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

N/A

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

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

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

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

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

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

Item 2.02 Results of Operations and Financial Condition.

On April 28, 2010, Cincinnati Financial Corporation issued the attached news release titled “Cincinnati Financial Reports First-Quarter 2010 Results,” furnished as Exhibit 99.1 hereto and incorporated herein by reference. On April 28, 2010, the company also distributed the attached information titled “Supplemental Financial Data,” furnished as Exhibit 99.2 hereto and incorporated herein by reference. This report should not be deemed an admission as to the materiality of any information contained in the news release or supplemental financial data.

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

Item 9.01 Financial Statements and Exhibits.

(c)       Exhibits

Exhibit 99.1 – News release dated April 28, 2010, “Cincinnati Financial Reports First-Quarter 2010 Results”

Exhibit 99.2 – Supplemental Financial Data for the period ending March 31, 2010 distributed April 28, 2010.

Signature

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

	CINCINNATI FINANCIAL CORPORATION
Date: April 28, 2010	/S/Steven J. Johnston
	Steven J. Johnston, FCAS, MAAA, CFA
	Chief Financial Officer, Senior Vice President, Secretary and Treasurer

EX-99.1

CINCINNATI FINANCIAL CORPORATION   Investor Contact: Dennis E. McDaniel, 513-870-2768 CINF-IR@cinfin.com Media Contact: Joan O. Shevchik, 513-603-5323 Media_Inquiries@cinfin.com

Cincinnati Financial Reports First-Quarter 2010 Results

Cincinnati, April 28, 2010 – Cincinnati Financial Corporation (Nasdaq: CINF) today reported:

· First-quarter 2010 net income of $68 million, or 42 cents per share, compared with $35 million, or 22 cents per share, in the first quarter of 2009.

· Operating income* of $63 million, or 39 cents per share, compared with $37 million, or 23 cents per share.

· First-quarter 2010 net income nearly doubled the year-ago result, driven by the after-tax net effect of three major contributing items: a $24 million increase from property casualty underwriting results, a $7 million increase from net realized investment gains, and a $3 million increase from investment income. The higher property casualty contribution reflected lower weather-related catastrophes and more favorable development on open insurance claims that originated prior to 2010.

· $29.86 book value per share at March 31, 2010, up 2 percent from December 31, 2009.

· Value creation ratio of 3.4 percent for the first quarter 2010, compared with negative 5.7 percent for the 2009 first quarter.

Financial Highlights  

(Dollars in millions except share data)	Three months ended March 31,
	2010		2009			change %
Revenue Highlights
Earned premiums	$	746	$	765			(2	)
Investment income, pre-tax		130		124			5
Total revenues		887		890			0
Income Statement Data
Net income	$	68	$	35			94
Net realized investment gains and losses		5		(2	)	nm
Operating income*	$	63	$	37			70
Per Share Data (diluted)
Net income	$	0.42	$	0.22			91
Net realized investment gains and losses		0.03		(0.01	)	nm
Operating income*	$	0.39	$	0.23			70
Book value	$	29.86	$	23.88			25
Cash dividend declared		0.395		0.39			1
Diluted weighted average shares outstanding		163,310,451		162,663,625			0

Insurance Operations Highlights

· 102.6 percent first-quarter 2010 property casualty combined ratio improved from 107.5 percent for the first quarter of 2009.

· 3 percent decline in property casualty net written premiums, which included personal lines segment growth of 7 percent.

· $92 million first-quarter 2010 property casualty new business written by agencies, down $5 million from first-quarter 2009. $8 million was contributed by agencies appointed since the beginning of 2009.

· 5 cents per share contribution from life insurance to first-quarter operating income, matching the first-quarter 2009 result.

Investment and Balance Sheet Highlights

· Investment income, after income tax effects, grew 3 percent in the first quarter, driven by pre-tax interest income growth of 11 percent.

· 21 percent year-over-year increase in fair value of invested assets plus cash at March 31, 2010, including bond portfolio growth of 25 percent and equity portfolio growth of 23 percent.

· 25 percent growth in book value since March 31, 2009. Shareholders’ equity grew to $4.865 billion.

· Parent company cash and marketable securities of $1.044 billion at March 31, 2010, up 5 percent from year-end.

* The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures on Page 11 defines and reconciles measures presented in this release that are not based on Generally Accepted Accounting Principles.

** Forward-looking statements and related assumptions are subject to the risks outlined in the company’s safe harbor statement (see Page 9).

Improving Trends

Kenneth W. Stecher, president and chief executive officer, commented, “First-quarter trends were largely positive, including better weather in the Midwest. The result was operating earnings and net income well above amounts achieved in the comparable 2009 quarter. The first-quarter property casualty insurance underwriting loss narrowed as our policyholders experienced fewer weather-related catastrophe losses and fewer large losses individually amounting to $250,000 or higher. We also noted improved pricing trends for our personal lines policies and nearly flat pricing for our commercial renewal policies.

On the investment side of our business, our rebalanced portfolio generated investment income exceeding first-quarter 2009 by 5 percent before taxes. Equities and bonds in the portfolio further appreciated in fair value, leading to a fourth consecutive quarter of increasing financial strength, with growth of our invested assets, total assets, book value and statutory surplus for both our property casualty insurance group and for our life insurance company.”

Insurance Growth and Profitability

Stecher continued, “With a 102.5 percent combined ratio for the first quarter, our personal lines segment is drawing closer to underwriting profitability. Our modest levels of personal lines business in the Northeast and along the Eastern Seaboard helped us avoid major losses from severe winter storms in those areas. Excluding catastrophes, the personal linescurrent accident year loss ratio is trending favorably, improving to 63.7 percent compared with 70.9 percent for full-year 2009.

“Personal lines net premiums written rose 7 percent, including $18 million of new business for an eighth consecutive quarter of new business growth. This healthy growth comes from expansion of our personal lines agency force and entry into new states over the past two years, as well as homeowner rate changes that began taking effect in the fourth quarter of 2009. Before year-end, we plan to develop predictive modeling that supports greater pricing sophistication for personal auto policies and to implement targeted homeowner rate increases effective in October.

“Our commercial lines segment’s combined ratio held steady at 102.1 percent compared with 102.2 percent for the 2009 first quarter. While our average renewal pricing was almost flat, our business policyholders had lower insurable exposures and new business pricing remains competitive. Commercial lines net written premiums fell almost 6 percent, including 13 percent lower new business. Agents in three states entered since December 2008 produced a robust $5 million of new business, only partially offsetting declines in established states. Most of the new business decline came from the workers’ compensation line of business, where we have effected improved underwriting guidelines to help restore profitability. In addition, we are working to reduce the interval between workers’ compensation injuries and reporting of the claim to us, improving our claims response and allowing for better managing of costs. Taking a proactive approach, we also are promoting loss control services available to workers’ compensation policyholders.

“We continue to see great opportunity for our excess and surplus lines company, now in its third year of operations. Net written premiums were $12 million for the first quarter, including $8 million of new business. Our excess and surplus policies feature relatively low policy limits along with significant flexibility in pricing and terms and conditions.

Continuing to Invest in Strong Agency Relationships

“Our underwriting expense ratio spiked in the first quarter, reflecting lower earned premiums; higher assessments, self-funded insurance costs and contingent liabilities; and the investments we are making to expand and to strengthen our ties with the independent agencies that represent us. Our technology systems are key to this effort. During the first quarter, our new policy administration system for commercialpackages and auto rolled out to three of the 19 states scheduled to receive it in 2010. A new version of our personal lines administration system rolled out to 28 states in February, with ongoing efforts to improve speed and implement agent-suggested enhancements. We continue to invest in training so our agents can get the most benefit from these systems and in additional technology projects to expand our use of predictive modeling, develop our data warehouse and introduce additional online services for policyholders.

“Each of these initiatives is expected to provide efficiency benefits over the long term to the company and to our agencies. We also continue to invest in new agency relationships, including staffing in new states and territories. We expect during the second half of 2010 to deploy field staff and appoint our first agencies in Connecticut and Oregon. We’re expanding our product portfolio too. Our new Target Markets department was staffed during the first quarter with specialists who will research, develop, market, monitor and manage products that help our agents target selected classes of business.

“Over the first four months of 2010, our executive team has held 20 sales meetings with our agency customers in locations across our operating territory. Agents enthusiastically affirmed the value to their agencies of our investments in efficiency and service, including extending to commercial package and auto policies the option for the company to directly bill policyholders. Agents also appreciate our efforts to broaden use of workers’ compensation specialists, provide proactive loss control services and develop dedicated marketing support for target products. They are confident that these measures help them gain new business opportunities and make us a stronger competitor for the best accounts within their agencies.

Creating Long-Term Value

Stecher concluded, “Book value per share growth for the quarter included 63 cents from a higher investment portfolio valuation including realized gains and 47 cents from investment income in non-life insurance portfolios, lowered by 39.5 cents for shareholder dividends and 9 cents of other items, principally insurance operations and interest on corporate debt. We continue to measure the overall progress of our insurance and investment operations through the value creation ratio, which reflects our ability to pay shareholder dividends plus our ability to increase book value. That ratio was 3.4 percent for the first quarter, representing nearly 14 percent on an annualized basis. We continue to be confident that our initiatives are taking us steadily in the right direction to achieve an annual average ratio in the range of 12 percent to 15 percent for the 2010 to 2014 period.”

Consolidated Property Casualty Insurance Operations

(Dollars in millions)	Three months ended March 31,
	2010			2009			Change %
Agency renewal written premiums	$	682		$	695			(2	)
Agency new business written premiums		92			97			(5	)
Other written premiums		(18	)		(14	)		(29	)
Net written premiums		756			778			(3	)
Unearned premium change		(48	)		(46	)		(4	)
Earned premiums		708			732			(3	)
Loss and loss expenses		475			544			(13	)
Underwriting expenses		252			243			4
Underwriting loss	$	(19	)	$	(55	)		65
Ratios as a percent of earned premiums:							Pt. Change
Current accident year before catastrophe losses		69.5	%		65.8	%		3.7
Current accident year catastrophe losses		3.1			7.5			(4.4	)
Prior accident years before catastrophe losses		(4.6	)		1.2			(5.8	)
Prior accident year catastrophe losses		(1.0	)		(0.3	)		(0.7	)
Total loss and loss expenses		67.0			74.2			(7.2	)
Underwriting expenses		35.6			33.3			2.3
Combined ratio		102.6	%		107.5	%		(4.9	)
Contribution from catastrophe losses and prior years reserve development		(2.5	)		8.4			(10.9	)
Combined ratio before catastrophe losses and prior years reserve development		105.1	%		99.1	%		6.0

· $22 million or 3 percent decline in first-quarter 2010 property casualty net written premiums, reflecting the effects of economically-driven insured exposure decreases and avoidance of business we considered underpriced. The decline was somewhat offset by targeted growth initiatives, including a $5 million increase in excess and surplus lines net written premiums.

· $5 million decrease in new business written by agencies in the first quarter of 2010 compared with the first quarter of 2009, including a $10 million decrease for commercial lines and a $4 million increase for personal lines.

· 1,179 agency relationships with 1,460 reporting locations marketing standard market property casualty insurance products at March 31, 2010, compared with 1,180 agency relationships with 1,463 reporting locations at year-end 2009. 11 new agency appointments were made while relationships with a similar number of agencies ended, in some cases due to a purchase by another agency with a Cincinnati relationship.

· 4.9 percentage-point improvement in the first-quarter GAAP combined ratio, including 4.4 points for lower catastrophe losses from weather events occurring during the first-quarter.

· Underwriting results benefitted from the impact of favorable prior accident year reserve development of $39 million for the first quarter of 2010 compared with an unfavorable amount of $7 million for the same period of 2009, accounting for 6.5 percentage points of improvement in the GAAP combined ratio.

The following table shows incurred catastrophe losses for the first quarters of 2010 and 2009.

(In millions, net of reinsurance)			Three months ended March 31,
			Commercial			Personal
Dates	Cause of loss	Region	lines			lines			Total
2010
Jan. 7	Freezing, wind	South, Midwest	$	4		$	2		$	6
Feb. 4	Ice, snow, wind	East, Midwest		4			1			5
Feb. 9	Ice, snow, wind	East, Midwest		6			2			8
All Other				2			1			3
Development on 2009 and prior catastrophes				(6	)		(1	)		(7	)
Calendar year incurred total			$	10		$	5		$	15
2009
Jan. 26-28	Flood, freezing, ice, snow	South, Midwest	$	6		$	14		$	20
Feb. 10-13	Flood, hail, wind	South, Midwest, East		11			19			30
Feb. 18-19	Wind, hail	South		-			5			5
Development on 2008 and prior catastrophes				(3	)		1			(2	)
Calendar year incurred total			$	14		$	39			53

Insurance Operations Highlights

Commercial Lines Insurance Operations

(Dollars in millions)	Three months ended March 31,
	2010			2009			Change %
Agency renewal written premiums	$	533		$	557			(4	)
Agency new business written premiums		66			76			(13	)
Other written premiums		(11	)		(7	)		(57	)
Net written premiums		588			626			(6	)
Unearned premium change		(65	)		(69	)		6
Earned premiums		523			557			(6	)
Loss and loss expenses		353			388			(9	)
Underwriting expenses		181			181			0
Underwriting loss	$	(11	)	$	(12	)		0
Ratios as a percent of earned premiums:							Pt. Change
Current accident year before catastrophe losses		71.1	%		65.2	%		5.9
Current accident year catastrophe losses		3.0			3.1			(0.1	)
Prior accident years before catastrophe losses		(5.5	)		2.1			(7.6	)
Prior accident year catastrophe losses		(1.2	)		(0.6	)		(0.6	)
Total loss and loss expenses		67.4			69.8			(2.4	)
Underwriting expenses		34.7			32.4			2.3
Combined ratio		102.1	%		102.2	%		(0.1	)
Contribution from catastrophe losses and prior years
reserve development		(3.7	)		4.6			(8.3	)
Combined ratio before catastrophe losses and prior
years reserve development		105.8	%		97.6	%		8.2

· $38 million or 6 percent decline in first-quarter 2010 commercial lines net written premiums. Lower renewal premiums reflected lower insured exposure levels due to the weak economy and modest pricing declines estimated at less than 1 percent for the average policy. Lower new business premiums included a $7 million decrease for workers’ compensation.

· Combined ratio reflected favorable prior accident year reserve development offset by higher current accident year results.

· 71.1 percent ratio for current accident year losses and loss expenses before catastrophes, improved slightly from 72.5 percent full-year 2009, including new losses greater than $4 million down 1.3 percentage points.

· 2.3 percentage-point increase in the underwriting expense ratio increase was primarily due to lower earned premiums and higher technology expenses related to the recently deployed policy administration system.

Personal Lines Insurance Operations

(Dollars in millions)	Three months ended March 31,
	2010			2009			Change %
Agency renewal written premiums	$	143		$	137			4
Agency new business written premiums		18			14			29
Other written premiums		(6	)		(6	)		0
Net written premiums		155			145			7
Unearned premium change		19			26			(27	)
Earned premiums		174			171			2
Loss and loss expenses		112			152			(26	)
Underwriting expenses		67			54			24
Underwriting loss	$	(5	)	$	(35	)		86
Ratios as a percent of earned premiums:							Pt. Change
Current accident year before catastrophe losses		63.7	%		67.4	%		(3.7	)
Current accident year catastrophe losses		3.3			22.0			(18.7	)
Prior accident years before catastrophe losses		(2.3	)		(1.4	)		(0.9	)
Prior accident year catastrophe losses		(0.3	)		0.6			(0.9	)
Total loss and loss expenses		64.4			88.6			(24.2	)
Underwriting expenses		38.1			32.1			6.0
Combined ratio		102.5	%		120.7	%		(18.2	)
Contribution from catastrophe losses and prior years
reserve development		0.7			21.2			(20.5	)
Combined ratio before catastrophe losses and prior
years reserve development		101.8	%		99.5	%		2.3

· $10 million or 7 percent increase in first-quarter 2010 personal lines net written premiums, reflecting improved pricing and strong new business growth.

· 18.2 percentage-point first-quarter combined ratio improvement primarily from lower weather-related catastrophe losses.

· 6.0 percentage-point increase in the underwriting expense ratio increase was primarily due to provisions for commitments and contingent liabilities involving prior years. Costs to develop and maintain the recently deployed policy administration system also contributed to the higher ratio.

Life Insurance Operations

(In millions)	Three months ended March 31,
	2010		2009		change %
Earned premiums	$	39	$	33		18
Investment income, net of expenses		32		30		7
Other income		-		1		(100	)
Total revenues, excluding realized investment gains and losses		71		64		11
Contract holders benefits		42		39		8
Underwriting expenses		16		12		33
Total benefits and expenses		58		51		14
Net income before income tax and realized investment gains and losses		13		13		0
Income tax		5		5		0
Net income before realized investment gains and losses	$	8	$	8		0

· 17 percent increase to $37 million in first-quarter 2010 earned premiums for life insurance products, driving earned premiums for the segment. Increase included 21 percent rise to $22 million in term life insurance earned premiums, reflecting marketing advantages of competitive, up-to-date products, personal service and policies backed by financial strength. In addition to life insurance products, total earned premiums also include annuity and accident and health premiums.

· 2 percent rise in face amount of life policies in force to $70.936 billion at March 31, 2010, from $69.815 billion at year-end 2009.

· $65 million in first-quarter 2010 fixed annuity deposits received compared with $12 million in first quarter 2009 and $181 million in full year 2009. Cincinnati Life does not offer variable or indexed products.

· First-quarter 2010 profit was in line with 2009 as higher earned premiums were offset by increased life insurance policy reserves and underwriting expenses related to the increased premium production.

· GAAP shareholders’ equity for The Cincinnati Life Insurance Company increased during the first quarter of 2010 by $34 million, or 5 percent, to $700 million. Net after-tax unrealized gains were up $27 million.

Investment and Balance Sheet Highlights

Investment Operations

(In millions)	Three months ended March 31,
	2010			2009			Change %
Total investment income, net of expenses, pre-tax	$	130		$	124			5
Investment interest credited to contract holders		(19	)		(16	)		(19	)
Realized investment gains and losses summary:
Realized investment gains and losses, net		3			52			(94	)
Change in fair value of securities with embedded derivatives		6			(4	)		nm
Other-than-temporary impairment charges		(1	)		(50	)		98
Total realized investment gains and losses, net		8			(2	)	nm
Investment operations income	$	119		$	106			12

(In millions)	Three months ended March 31,
	2010			2009			Change %
Investment income:
Interest	$	107		$	96			11
Dividends		24			27			(11	)
Other		1			3			(67	)
Investment expenses		(2	)		(2	)		0
Total investment income, net of expenses, pre-tax		130			124			5
Income taxes		(32	)		(29	)		(10	)
Total investment income, net of expenses, after-tax	$	98		$	95			3
Effective tax rate		24.5	%		23.1	%
Average yield pre-tax		4.6	%		5.1	%
Average yield after-tax		3.5	%		3.9	%

· 5 percent growth in first-quarter 2010 pre-tax investment income and 3 percent after-tax net investment income, as higher interest income on bonds offset lower dividends from equity security holdings.

· $149 million first-quarter 2010 increase in pre-tax unrealized investment portfolio gains, including $85 million for the bond portfolio and $64 million for the equity portfolio.

(Dollars in millions except share data)	At March 31,			At December 31,
	2010			2009
Balance sheet data
Invested assets	$	11,002		$	10,643
Total assets		14,616			14,440
Short-term debt		49			49
Long-term debt		790			790
Shareholders' equity		4,865			4,760
Book value per share		29.86			29.25
Debt-to-capital ratio		14.7	%		15.0	%
	Three months ended March 31,
	2010			2009
Performance measures
Value creation ratio		3.4	%		(5.7	) %

· $11.404 billion in cash and invested assets at March 31, 2010, up from $11.200 billion at December 31, 2009.

· $8.081 billion bond portfolio at March 31, 2010, with an average rating of A2/A, and with a 3 percent rise in fair value during the first quarter of 2010.

· $2.838 billion equity portfolio was 25.8 percent of invested assets, including $749 million in pre-tax unrealized gains at March 31, 2010, and with a 5 percent rise in fair value during the first quarter of 2010.

· $3.690 billion of statutory surplus for the property casualty insurance group at March 31, 2010, up from $3.648 billion at December 31, 2009. Ratio of net written premiums to property casualty statutory surplus for the 12 months ended March 31, 2010, of 0.8-to-1, unchanged from 0.8-to-1 for the 12 months ended December 31, 2009.

· Value creation ratio of 3.4 percent for the first quarter of 2010 includes 1.3 percent from shareholder dividends and 2.1 percent growth in book value per share.

For additional information or to register for our conference call webcast, please visit www.cinfin.com/investors.

Cincinnati Financial Corporation offers business, home and auto insurance, our main business, through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life and disability income insurance, annuities and surplus lines property and casualty insurance. For additional information about the company, please visit www.cinfin.com.
Mailing Address:	Street Address:
P.O. Box 145496	6200 South Gilmore Road
Cincinnati, Ohio 45250-5496	Fairfield, Ohio 45014-5141

Safe Harbor Statement

This is our “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995. Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by the forward-looking statements in this report. Some of those risks and uncertainties are discussed in our 2009 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 23. Although we often review or update our forward-looking statements when events warrant, we caution our readers that we undertake no obligation to do so.

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

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

· Increased frequency and/or severity of claims

· Inadequate estimates or assumptions used for critical accounting estimates

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

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

· Inability to defer policy acquisition costs for any business segment if pricing and loss trends would lead management to conclude that segment could not achieve sustainable profitability

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

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

o Significant or prolonged decline in the value of a particular security or group of securities and impairment of the asset(s)

o Significant decline in investment income due to reduced or eliminated dividend payouts from a particular security or group of securities

o Significant rise in losses from surety and director and officer policies written for financial institutions

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

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

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

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

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

o Multi-notch downgrades of the company’s financial strength ratings

o Concerns that doing business with the company is too difficult

o Perceptions that the company’s level of service, particularly claims service, is no longer a distinguishing characteristic in the marketplace

o Delays or inadequacies in the development, implementation, performance and benefits of technology projects and enhancements

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

o Restrict our ability to exit or reduce writings of unprofitable coverages or lines of business

o Place the insurance industry under greater regulatory scrutiny or result in new statutes, rules and regulations

o Increase our expenses

o Add assessments for guaranty funds, other insurance related assessments or mandatory reinsurance arrangements; or that impair our ability to recover such assessments through future surcharges or other rate changes

o Limit our ability to set fair, adequate and reasonable rates

o Place us at a disadvantage in the marketplace

o Restrict our ability to execute our business model, including the way we compensate agents

· Adverse outcomes from litigation or administrative proceedings

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

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

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

· Difficulties with technology or data security breaches could negatively affect our ability to conduct business and our relationships with agents, policyholders and others

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

* * *

Cincinnati Financial Corporation

Condensed Balance Sheets and Statements of Income (unaudited)

(Dollars in millions)	March 31,			December 31,
	2010			2009
Assets
Investments	$	11,002		$	10,643
Cash and cash equivalents		402			557
Premiums receivable		1,031			995
Reinsurance receivable		570			675
Other assets		1,611			1,570
Total assets	$	14,616		$	14,440
Liabilities
Insurance reserves	$	5,981		$	5,925
Unearned premiums		1,549			1,509
6.125% senior notes due 2034		371			371
6.9% senior debentures due 2028		28			28
6.92% senior debentures due 2028		391			391
Other liabilities		1,431			1,456
Total liabilities		9,751			9,680
Shareholders' Equity
Common stock and paid-in capital		1,474			1,474
Retained earnings		3,865			3,862
Accumulated other comprehensive income		722			624
Treasury stock		(1,196	)		(1,200	)
Total shareholders' equity		4,865			4,760
Total liabilities and shareholders' equity	$	14,616		$	14,440

(Dollars in millions except per share data)	Three months ended March 31,
	2010		2009
Revenues
Earned premiums	$	746	$	765
Investment income, net of expenses		130		124
Realized investment gains and losses		8		(2	)
Other income		3		3
Total revenues		887		890
Benefits and Expenses
Insurance losses and policyholder benefits		516		581
Underwriting, acquisition and insurance expenses		268		255
Other operating expenses		4		6
Interest expense		14		14
Total benefits and expenses		802		856
Income before income taxes		85		34
Provision (benefit) for income taxes		17		(1	)
Net Income	$	68	$	35
Per Common Share:
Net income—basic	$	0.42	$	0.22
Net income—diluted	$	0.42	$	0.22

Definitions of Non-GAAP Information and

Reconciliation to Comparable GAAP Measures

(See attached tables for 2010 reconciliations; prior-period reconciliations available at www.cinfin.com/investors.)

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

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

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

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

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

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

Balance Sheet Reconciliation

	Three months ended March 31,
(Dollars are per share)	2010			2009
Value Creation Ratio
End of period book value	$	29.86		$	23.88
Less beginning of period book value		29.25			25.75
Change in book value		0.61			(1.87	)
Dividend paid to shareholders		0.395			0.390
Total contribution to value creation ratio	$	1.005		$	(1.48	)
Contribution to value creation ratio from change in book value*		2.1	%		(7.2	) %
Contribution to value creation ratio from dividends paid to shareholders**		1.3			1.5
Value creation ratio		3.4	%		(5.7	) %

Net Income Reconciliation

(In millions except per share data)	Three months ended
	March 31, 2010
Net income	$	68
Net realized investment gains and losses		5
Operating income		63
Less catastrophe losses		(10	)
Operating income before catastrophe losses	$	73
Diluted per share data:
Net income	$	0.42
Net realized investment gains and losses		0.03
Operating income		0.39
Less catastrophe losses		(0.06	)
Operating income before catastrophe losses	$	0.45

Property Casualty Reconciliation
(Dollars in millions)	Three months ended March 31, 2010
	Consolidated***			Commercial			Personal
Premiums:
Adjusted written premiums  - statutory	$	735		$	568		$	155
Written premium adjustment		20			20			0
Reported written premiums - statutory		755			588			155
Unearned premiums change		(48	)		(65	)		19
Earned premiums	$	707		$	523		$	174
Statutory ratio:
Statutory combined ratio		101.1	%		99.3	%		106.5	%
Contribution from catastrophe losses		2.1			1.8			3.0
Statutory combined ratio excluding catastrophe losses		99.0	%		97.5	%		103.5	%
Commission expense ratio		18.4	%		17.2	%		22.4	%
Other expense ratio		15.7			14.7			19.7
Statutory expense ratio		34.1	%		31.9	%		42.1	%
GAAP ratio:
GAAP combined ratio		102.6	%		102.1	%		102.5	%
Contribution from catastrophe losses		2.1			1.8			3.0
Prior accident years before catastrophe losses		(4.6	)		(5.5	)		(2.3	)
GAAP combined ratio excluding catastrophe losses and prior
years reserve development		105.1	%		105.8	%		101.8	%

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

*    Change in book value divided by the beginning of period book value

**   Dividend paid to shareholders divided by beginning of period book value

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

EX-99.2

Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending March 31, 2010

6200 South Gilmore Road

Fairfield, Ohio 45014-5141

www.cinfin.com

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

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

Ratings are as of April 28, 2010, under continuous review and subject to change and/or affirmation. For the current ratings, select Financial Strength Ratings on www.cinfin.com.

The consolidated financial statements and financial exhibits that follow are unaudited. These consolidated financial statements and exhibits should be read in conjunction with the consolidated financial statements and notes included our periodic filings with the U.S. Securities and Exchange Commission. The results of operations for interim periods may not be indicative of results to be expected for the full year.

Cincinnati Financial Corporation

Supplemental Financial Data

First Quarter 2010

		Page
	Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3
Consolidated
	Quick Reference	4
	CFC and Subsidiaries Consolidation – Three Months Ended March 31, 2010	5
	CFC Insurance Subsidiaries – Selected Balance Sheet Data	6
Consolidated Property Casualty Insurance Operations
(Includes Cincinnati Specialty Underwriters Insurance Company (CSU))
	Statutory Statements of Income	7
	Cincinnati Insurance Companies – Loss Detail	8
	Cincinnati Insurance Companies – Loss Ratio	9
	Cincinnati Insurance Companies – Loss Claim Count	10
	Direct Written Premiums by Line of Business and State	11
	Quarterly Property Casualty Data – Commercial Lines of Business	12
	Quarterly Property Casualty Data – Personal Lines of Business	13
	Loss and Loss Expense Analysis	14
Reconciliation Data
	Quarterly Property Casualty Data – Consolidated	15
	Quarterly Property Casualty Data – Commercial Lines	16
	Quarterly Property Casualty Data – Personal Lines	17
Life Insurance Operations
	Statutory Statements of Income	18

Definitions of Non-GAAP Information and

Reconciliation to Comparable GAAP Measures

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

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

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

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

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

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

2010 First-Quarter Supplement

3

Cincinnati Financial Corporation

Quick Reference - First Quarter 2010

(all data shown is for the three months ended or as of March 31, 2010)

	3/31/2010		Year over year change %
Revenues:
Commercial lines net written premiums	$	588		(6	)
Personal lines net written premiums		155		7
Surplus lines net written premiums		13		71
Property casualty net written premiums		756		(3	)
Life and accident and health net written premiums		40		9
Annuity net written premiums		64		423
Life, annuity and accident and health net written premiums		106		111
Commercial lines net earned premiums		522		(6	)
Personal lines net earned premiums		174		2
Surplus lines net earned premiums		11		175
Property casualty net earned premiums		707		(3	)
Life and accident and health net earned premiums		39		18
Investment income		130		5
Realized gains on investments		8	nm
Other income		3		0
Total revenues		887		0
Income:
Operating income	$	63		70
Net realized investment gains and losses		5	nm
Net income		68		94
Per share (diluted):
Operating income	$	0.39		70
Net realized investment gains and losses		0.03	nm
Net income		0.42		91
Book value		29.86		25
Weighted average shares – diluted		163,310,451		0

	3/31/2010			Year over year change %
Benefits and expenses:
Commercial lines loss and loss expenses	$	352			(9	)
Personal lines loss and loss expenses		112			(26	)
Surplus lines loss and loss expenses		10			233
Life and accident and health losses and policy benefits		42			8
Underwriting, acquisition and insurance expenses		268			5
Other operating expenses		4			(33	)
Interest expenses		14			0
Total expenses		802			(6	)
Net income before income taxes		85			150
Total income tax		17		nm
Balance Sheet:
Fixed maturity investments	$	8,081
Equity securities		2,838
Short-term investments		—
Other invested assets		83
Total invested assets	$	11,002
Loss and loss expense reserves	$	4,119
Total debt		839
Shareholders' equity		4,865
Key ratios:
Commercial lines GAAP combined ratio		102.1	%
Personal lines GAAP combined ratio		102.5
Property casualty GAAP combined ratio		102.6
Commercial lines STAT combined ratio		99.3	%
Personal lines STAT combined ratio		106.6
Property casualty STAT combined ratio		101.1
Value creation ratio		3.4	%

2010 First-Quarter Supplement

4

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Three Months Ended March 31, 2010

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I		CINFIN			C-SUPR		ELIM			Total
Revenues:
Premiums earned:
Property casualty	$	—		$	748		$	—		$	—	$	—		$	—	$	(1	)	$	747
Life		—			—			48			—		—			—		—			48
Accident health		—			—			2			—		—			—		—			2
Premiums ceded		—			(40	)		(11	)		—		—			—		—			(51	)
Total earned premium		—			708			39			—		—			—		(1	)		746
Investment income		10			87			33			—		—			—		—			130
Realized gain (loss) on investments		6			4			(2	)		—		—			—		—			8
Other income		4			1			—			2		—			3		(7	)		3
Total revenues	$	20		$	800		$	70		$	2	$	—		$	3	$	(8	)	$	887
Benefits & expenses:
Losses & policy benefits	$	—		$	452		$	58		$	—	$	—		$	—	$	(2	)	$	508
Reinsurance recoveries		—			23			(15	)		—		—			—		—			8
Underwriting, acquisition and insurance expenses		—			252			16			—		—			—		—			268
Other operating expenses		6			—			—			1		—			3		(6	)		4
Interest expense		13			—			—			1		—			—		—			14
Total expenses	$	19		$	727		$	59		$	2	$	—		$	3	$	(8	)	$	802
Income before income taxes	$	1		$	73		$	11		$	—	$	—		$	—	$	—		$	85
Provision (benefit) for income taxes:
Current operating income	$	(2	)	$	17		$	(3	)	$	—	$	—		$	—	$	—		$	12
Capital gains/losses		2			2			(1	)		—		—			—		—			3
Deferred		(1	)		(5	)		8			—		—			—		—			2
Total provision (benefit) for income taxes	$	(1	)	$	14		$	4		$	—	$	—		$	—	$	—		$	17
Operating income (loss)	$	(2	)	$	57		$	8		$	—	$	—		$	—	$	—		$	63
Net income - current year	$	2		$	59		$	7		$	—	$	—		$	—	$	—		$	68
Net income (loss) - prior year	$	49		$	(4	)	$	(9	)	$	—	$	(1	)	$	—	$	—		$	35

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

2010 First-Quarter Supplement

5

Cincinnati Financial Corporation Insurance Subsidiaries

Selected Balance Sheet Data

(In millions)	12/31/2010	9/30/2010	6/30/2010	3/31/2010		12/31/2009		9/30/2009		6/30/2009			3/31/2009
Cincinnati Insurance Consolidated (including CSU)
Fixed maturities (fair value)				$	5,759	$	5,663	$	5,521	$	5,169		$	4,804
Equities (fair value)					2,013		1,910		2,477		2,247			1,986
Short-term investments (fair value)					—		5		10		11			13
Fixed maturities - pretax net unrealized gain (loss)					287		242		301		25			(36	)
Equities - pretax net unrealized gain					635		592		594		487			347
Loss and loss expense reserves - STAT					3,689		3,639		3,656		3,674			3,555
Equity GAAP					4,506		4,405		4,283		3,795			3,512
Surplus - STAT					3,692		3,648		3,472		3,241			3,105
The Cincinnati Life Insurance Company
Fixed maturities (fair value)				$	2,055	$	1,927	$	1,868	$	1,694		$	1,534
Equities (fair value)					114		108		123		103			89
Short-term investments (fair value)					—		—		1		1			—
Fixed maturities - pretax net unrealized gain (loss)					110		72		67		(43	)		(94	)
Equities - pretax net unrealized gain (loss)					7		1		11		(8	)		(27	)
Equity - GAAP					700		666		653		563			454
Surplus - STAT					310		300		283		270			254

	12/31/2008			9/30/2008			6/30/2008			3/31/2008		12/31/2007		9/30/2007		6/30/2007			3/31/2007
Cincinnati Insurance Consolidated (including CSU)
Fixed maturities (fair value)	$	4,309		$	4,183		$	4,304		$	4,351	$	4,295	$	4,366	$	4,367		$	4,362
Equities (fair value)		2,432			3,210			3,537			4,226		4,595		5,201		5,411			5,472
Short-term investments (fair value)		19			162			—			51		50		19		72			3
Fixed maturities - pretax net unrealized gain (loss)		(108	)		(132	)		(33	)		39		58		23		(30	)		44
Equities - pretax net unrealized gain		627			1,012			1,227			1,831		2,077		2,657		2,917			3,017
Loss and loss expense reserves - STAT		3,494			3,507			3,534			3,448		3,398		3,461		3,374			3,373
Equity GAAP		3,667			3,947			4,011			4,498		4,784		5,282		5,404			5,272
Surplus - STAT		3,360			3,687			3,650			4,027		4,307		4,782		4,937			4,741
The Cincinnati Life Insurance Company
Fixed maturities (fair value)	$	1,467		$	1,483		$	1,551		$	1,534	$	1,465	$	1,475	$	1,415		$	1,384
Equities (fair value)		122			200			265			307		371		459		478			539
Short-term investments (fair value)		—			—			—			—		51		18		29			16
Fixed maturities - pretax net unrealized gain (loss)		(115	)		(79	)		(35	)		0		6		4		(4	)		20
Equities - pretax net unrealized gain		(7	)		61			92			127		162		225		254			305
Equity - GAAP		471			530			617			661		685		724		730			739
Surplus - STAT		290			371			420			453		477		485		491			483

2010 First-Quarter Supplement

6

Consolidated Cincinnati Insurance Companies

Statutory Statements of Income

	For the Three Months Ended March 31,
(In millions)	2010			2009			Change			% Change
Underwriting income
Net premiums written	$	756		$	778		$	(22	)		(3	)
Unearned premiums increase		48			46			2			4
Earned premiums	$	708		$	732		$	(24	)		(3	)
Losses incurred	$	385		$	457		$	(72	)		(16	)
Allocated loss expenses incurred		43			36			7			18
Unallocated loss expenses incurred		47			50			(3	)		(5	)
Other underwriting expenses incurred		254			236			18			8
Workers compensation dividend incurred		3			4			(1	)		(15	)
Total underwriting deductions	$	732		$	783		$	(51	)		(6	)
Net underwriting losses	$	(24	)	$	(51	)	$	27			(53	)
Investment income
Gross investment income earned	$	90		$	86		$	4			5
Net investment income earned		89			85			4			5
Net realized capital gains (losses)		2			(34	)		36			nm
Net investment gains (excl. subs)	$	91		$	51		$	40			78
Dividend from subsidiary		—			20			(20	)		nm
Net investment gains (net of tax)	$	91		$	71		$	20			28
Other income	$	—		$	1		$	(1	)		nm
Net income before federal income taxes	$	67		$	21		$	46			222
Federal and foreign income taxes incurred	$	17		$	(1	)	$	18			nm
Net income (statutory)	$	50		$	22		$	28			127

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

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

2010 First-Quarter Supplement

7

Cincinnati Insurance Companies

Loss Detail

(Dollars in millions)	Three months ended																Six months ended				Nine months ended				Twelve months ended
	12/31/10	9/30/10	6/30/10	3/31/10		12/31/09			9/30/09			6/30/09		3/31/09			6/30/10	6/30/09			9/30/10	9/30/09			12/31/10	12/31/09
Consolidated Loss Detail
New losses greater than $4,000,000				$	6	$	9		$	18		$	21	$	9			$	30			$	48			$	57
New losses $1,000,000-$4,000,000					35		37			43			39		28				67				110				147
New losses $250,000-$1,000,000					52		48			55			47		62				109				164				212
Case reserve development above $250,000					37		89			51			70		56				125				177				265
Large losses subtotal				$	130	$	183		$	167		$	177	$	155			$	331			$	499			$	681
IBNR incurred					12		19			12			39		18				58				69				89
Catastrophe losses incurred					15		(12	)		7			118		53				171				177				165
Remaining incurred					228		166			182			191		232				423				605				771
Total losses incurred				$	385	$	356		$	368		$	525	$	458			$	983			$	1,350			$	1,706
Commercial Loss Detail
New losses greater than $4,000,000				$	6	$	9		$	13		$	21	$	9			$	30			$	43			$	52
New losses $1,000,000-$4,000,000					32		34			33			36		26				62				96				130
New losses $250,000-$1,000,000					40		35			43			39		47				86				129				164
Case reserve development above $250,000					32		83			49			63		51				114				163				245
Large losses subtotal				$	110	$	161		$	138		$	159	$	133			$	292			$	431			$	591
IBNR incurred					9		28			11			37		18				56				67				95
Catastrophe losses incurred					10		(10	)		(7	)		57		14				71				64				54
Remaining incurred					152		88			113			113		156				269				382				470
Total losses incurred				$	281	$	267		$	255		$	366	$	321			$	688			$	944			$	1,210
Personal Loss Detail
New losses greater than $4,000,000				$	—	$	—		$	5		$	—	$	—			$	—			$	5			$	5
New losses $1,000,000-$4,000,000					3		3			10			3		2				5				14				17
New losses $250,000-$1,000,000					10		13			12			8		15				23				35				48
Case reserve development above $250,000					3		5			2			7		5				11				14				19
Large losses subtotal				$	16	$	21		$	29		$	18	$	22			$	39			$	68			$	89
IBNR incurred					1		(10	)		—			—		(1	)			(1	)			(1	)			(11	)
Catastrophe losses incurred					5		(2	)		14			61		39				100				113				111
Remaining incurred					75		76			65			76		75				151				216				292
Total losses incurred				$	97	$	85		$	108		$	155	$	135			$	289			$	396			$	481
Excess & Surplus Loss Detail
New losses greater than $4,000,000					—		—			—			—		—				—				—				—
New losses $1,000,000-$4,000,000					—		—			—			—		—				—				—				—
New losses $250,000-$1,000,000					2		—			—			—		—				—				—				—
Case reserve development above $250,000					2		1			—			—		—				—				—				1
Large losses subtotal				$	4	$	1		$	—		$	—	$	—			$	—			$	—			$	1
IBNR incurred					2		1			1			2		1				3				3				5
Catastrophe losses incurred					—		—			—			—		—				—				—				—
Remaining incurred					1		2			4			2		1				3				7				9
Total losses incurred				$	7	$	4		$	5		$	4	$	2			$	6			$	10			$	15

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

* 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.

2010 First-Quarter Supplement

8

Cincinnati Insurance Companies

Loss Ratio

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/10	9/30/10	6/30/10	3/31/10			12/31/09			9/30/09			6/30/09			3/31/09			6/30/10	6/30/09			9/30/10	9/30/09			12/31/10	12/31/09
Consolidated Loss Ratio
New losses greater than $4,000,000					0.8	%		1.3	%		2.5	%		2.8	%		1.3	%			2.0	%			2.2	%			2.0	%
New losses $1,000,000-$4,000,000					4.9			5.2			5.9			5.3			3.8				4.5				5.0				5.1
New losses $250,000-$1,000,000					7.4			6.7			7.5			6.4			8.4				7.5				7.4				7.3
Case reserve development above $250,000					5.3			12.4			7.0			9.6			7.6				8.5				8.0				9.0
Large losses subtotal					18.4	%		25.6	%		22.9	%		24.1	%		21.1	%			22.5	%			22.6	%			23.4	%
IBNR incurred					1.7			2.7			1.7			5.3			2.5				3.9				3.2				3.0
Total catastrophe losses incurred					2.1			(1.7	)		0.9			16.1			7.2				11.6				8.1				5.7
Remaining incurred					32.1			23.3			24.7			26.1			31.7				29.0				27.5				26.5
Total loss ratio					54.3	%		49.9	%		50.2	%		71.6	%		62.5	%			67.0	%			61.4	%			58.6	%
Commercial Loss Ratio
New losses greater than $4,000,000					1.1	%		1.7	%		2.4	%		3.7	%		1.7	%			2.7	%			2.6	%			2.4	%
New losses $1,000,000-$4,000,000					6.1			6.4			6.1			6.5			4.7				5.6				5.8				5.9
New losses $250,000-$1,000,000					7.7			6.5			7.8			7.0			8.4				7.7				7.8				7.5
Case reserve development above $250,000					6.2			15.5			8.8			11.4			9.1				10.3				9.8				11.1
Large losses subtotal					21.1	%		30.1	%		25.1	%		28.6	%		23.9	%			26.3	%			26.0	%			26.9	%
IBNR incurred					1.8			5.3			2.0			6.7			3.3				5.0				4.0				4.3
Total catastrophe losses incurred					1.8			(1.8	)		(1.2	)		10.3			2.5				6.4				3.8				2.5
Remaining incurred					29.0			16.6			20.3			20.4			27.9				24.1				22.9				21.4
Total loss ratio					53.7	%		50.2	%		46.2	%		66.0	%		57.6	%			61.8	%			56.7	%			55.1	%
Personal Loss Ratio
New losses greater than $4,000,000					0.0	%		0.0	%		2.9	%		0.0	%		0.0	%			0.0	%			1.0	%			0.7	%
New losses $1,000,000-$4,000,000					1.5			1.6			5.7			1.9			0.8				1.4				2.8				2.5
New losses $250,000-$1,000,000					5.5			7.5			7.0			4.8			8.6				6.7				6.7				6.9
Case reserve development above $250,000					1.9			3.2			1.3			3.7			3.0				3.3				2.7				2.9
Large losses subtotal					8.9	%		12.3	%		16.9	%		10.4	%		12.4	%			11.4	%			13.2	%			13.0	%
IBNR incurred					0.3			(5.7	)		(0.2	)		0.1			(0.6	)			(0.3	)			(0.3	)			(1.6	)
Total catastrophe losses incurred					3.0			(1.4	)		7.9			35.4			22.6				29.0				22.0				16.1
Remaining incurred					43.1			44.2			38.5			44.2			43.9				44.1				42.2				42.7
Total loss ratio					55.3	%		49.4	%		63.1	%		90.1	%		78.3	%			84.2	%			77.1	%			70.2	%
Excess & Surplus Loss Ratio
New losses greater than $4,000,000					0.0	%		0.0	%		0.0	%		0.0	%		0.0	%			0.0	%			0.0	%			0.0	%
New losses $1,000,000-$4,000,000					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
New losses $250,000-$1,000,000					16.9			4.4			0.0			0.0			0.0				0.0				0.0				1.5
Case reserve development above $250,000					20.7			5.5			0.0			0.0			0.0				0.0				0.0				1.9
Large losses subtotal					37.6	%		9.9	%		0.0	%		0.0	%		0.0	%			0.0	%			0.0	%			3.4	%
IBNR incurred					18.4			11.4			5.6			26.7			22.4				24.9				16.5				14.8
Total catastrophe losses incurred					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
Remaining incurred					9.4			21.1			46.7			32.8			29.1				31.3				38.0				32.3
Total loss ratio					65.4	%		42.4	%		52.3	%		59.5	%		51.5	%			56.2	%			54.5	%			50.5	%

*Certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.

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

2010 First-Quarter Supplement

9

Cincinnati Insurance Companies

Loss Claim Count

(Dollars in millions)	Three months ended													Six months ended			Nine months ended			Twelve months ended
	12/31/10	9/30/10	6/30/10	3/31/10		12/31/09		9/30/09		6/30/09		3/31/09		6/30/10	6/30/09		9/30/10	9/30/09		12/31/10	12/31/09
Consolidated Loss Claim Count
New losses greater than $4,000,000					1		2		4		4		2			6			10			12
New losses $1,000,000-$4,000,000					19		19		26		22		16			38			64			83
New losses $250,000-$1,000,000					123		107		130		114		149			263			393			500
Case reserve development above $250,000					77		122		81		108		89			197			278			400
Large losses total					220		250		241		248		256			504			745			995
Commercial Loss Claim Count
New losses greater than $4,000,000					1		2		3		4		2			6			9			11
New losses $1,000,000-$4,000,000					17		17		20		19		15			34			54			71
New losses $250,000-$1,000,000					95		77		101		92		112			204			305			382
Case reserve development above $250,000					67		108		74		93		77			170			244			352
Large losses total					180		204		198		208		206			414			612			816
Personal Loss Claim Count
New losses greater than $4,000,000					—		—		1		—		—			—			1			1
New losses $1,000,000-$4,000,000					2		2		6		3		1			4			10			12
New losses $250,000-$1,000,000					24		29		29		22		37			59			88			117
Case reserve development above $250,000					5		13		7		15		12			27			34			47
Large losses total					31		44		43		40		50			90			133			177
Excess & Surplus Loss Claim Count
New losses greater than $4,000,000					—		—		—		—		—			—			—			—
New losses $1,000,000-$4,000,000					—		—		—		—		—			—			—			—
New losses $250,000-$1,000,000					4		1		—		—		—			—			—			1
Case reserve development above $250,000					5		1		—		—		—			—			—			1
Large losses total					9		2		—		—		—			—			—			2

The sum of quarterly amounts may not equal the full year as each is computed independently.

* 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.

2010 First-Quarter Supplement

10

Consolidated Cincinnati Insurance Companies

Agency Direct Written Premiums by Risk State by Line of Business for the Three Months Ended March 31, 2010

(Dollars in millions)	Standard Market																					Surplus Lines						Standard Market						*Consolidated
	Commercial Lines														Personal Lines							Commercial		Consolidated				Commercial			Personal			Total
	Comm		Comm		Comm		Workers'		Specialty		Surety &		Mach. &		Pers		Home			Other		Casualty		2010		2009		Change			Change			Change
Risk State	Casualty		Prop		Auto		Comp		Packages		Exec Risk		Equip		Auto		Owner			Personal		& Prop		Total		Total		%			%			%
AL	$	4.0	$	4.8	$	1.8	$	0.2	$	2.4	$	0.5	$	0.2	$	3.5	$	5.4		$	1.2	$	0.3	$	24.2	$	24.7		(4.3	)		(1.4	)		(2.0	)
AZ		2.5		1.8		2.1		0.7		0.3		0.2		0.3		0.3		0.3			0.1		0.3		8.7		8.5		(2.2	)		65.3			2.8
AR		2.0		2.8		1.7		1.1		1.2		0.4		0.1		0.7		0.7			0.2		0.2		11.2		11.3		(1.7	)		0.0			(0.5	)
CO		0.7		0.8		0.4		0.1		—		0.1		0.1		—		—			—		0.1		2.3		0.5		378.5			13.6			369.8
DE		0.5		0.4		0.4		0.7		0.1		—		—		—		—			—		—		2.3		1.5		51.5		nm				51.6
FL		5.5		5.9		2.7		0.4		0.5		0.7		0.2		2.4		3.3			0.7		0.3		22.8		26.1		(10.1	)		(20.3	)		(12.1	)
GA		7.0		5.7		4.8		3.7		1.9		1.4		0.3		7.3		6.5			2.0		0.7		41.4		41.9		(5.5	)		5.2			(1.4	)
ID		1.9		1.2		1.3		—		0.3		0.3		0.1		0.2		0.1			—		0.1		5.5		5.9		(14.2	)	nm				(7.7	)
IL		16.3		11.6		8.4		14.7		3.0		1.5		0.7		5.7		4.2			1.6		1.2		68.9		71.7		(6.9	)		10.1			(3.9	)
IN		11.8		9.8		6.4		6.5		2.0		1.5		0.9		5.9		5.4			1.5		1.3		52.8		58.8		(15.2	)		4.9			(10.1	)
IA		5.3		3.6		2.5		6.6		1.1		0.8		0.2		0.7		0.8			0.4		0.4		22.3		24.4		(11.1	)		5.8			(8.6	)
KS		2.3		2.5		1.3		2.7		0.8		0.4		0.1		0.9		1.1			0.3		0.1		12.5		13.0		(6.5	)		9.0			(3.6	)
KY		5.6		5.3		3.8		1.0		1.5		0.7		0.3		5.0		3.6			1.1		0.6		28.5		27.8		(2.9	)		11.8			2.7
MD		3.8		1.7		2.8		1.9		0.3		0.5		0.1		0.1		0.4			0.1		0.2		12.1		12.7		(6.4	)		22.3			(4.6	)
MI		7.6		5.5		3.5		4.5		2.8		1.4		0.5		2.7		2.8			0.7		0.4		32.4		33.7		(6.4	)		7.1			(3.5	)
MN		5.7		4.7		2.6		2.0		1.0		0.7		0.4		1.5		1.3			1.0		0.5		21.3		21.5		(3.2	)		3.7			(0.7	)
MO		4.9		5.2		3.1		2.7		1.5		0.6		0.3		0.8		1.1			0.3		0.5		21.1		22.1		(7.7	)		21.6			(4.4	)
MT		3.4		1.4		1.6		—		0.3		0.2		0.1		0.3		0.2			0.1		0.1		7.7		9.1		(17.7	)		54.8			(14.7	)
NE		1.9		1.9		0.9		1.8		0.5		0.3		0.1		0.2		0.2			0.1		0.2		7.9		8.0		(2.6	)		(18.1	)		(1.7	)
NH		0.8		0.5		0.3		0.9		0.2		0.1		—		0.1		0.1			0.1		0.1		3.4		2.9		16.1			11.4			18.6
NM		0.6		0.3		0.5		0.2		—		0.1		—		—		—			—		0.1		1.9		1.4		38.6		nm				38.1
NY		7.2		2.4		2.8		0.8		0.4		0.6		0.2		—		—			—		0.1		14.6		13.8		5.0			25.2			5.6
NC		7.9		6.7		4.9		5.3		3.6		1.8		0.5		2.1		1.7			1.0		0.4		35.7		37.5		(12.4	)		113.5			(4.7	)
ND		1.7		0.9		0.7		—		0.2		0.2		0.1		0.1		0.1			—		—		4.0		4.0		0.1			19.0			1.2
OH		37.9		22.6		14.2		—		5.6		5.7		1.5		25.1		17.9			7.0		1.6		138.7		145.5		(9.1	)		3.2			(4.4	)
PA		12.7		8.1		8.1		14.4		2.4		1.6		0.5		1.6		1.2			0.8		0.6		52.2		52.0		(0.8	)		3.8			0.2
SC		2.7		2.1		1.7		1.0		0.6		0.5		0.1		0.3		0.2			0.1		0.2		9.4		8.9		1.6			372.4			6.5
SD		0.5		0.5		0.4		0.9		0.1		0.1		—		—		—			—		—		2.6		4.2		(39.1	)		(86.6	)		(38.9	)
TN		6.8		5.4		3.8		3.0		2.7		1.1		0.3		2.2		2.3			0.8		0.4		28.7		27.3		2.3			17.5			5.2
TX		2.1		1.9		1.1		0.7		0.1		0.2		0.2		—		—			—		0.6		6.8		1.4		324.3		nm				354.1
UT		2.4		1.3		1.4		—		0.2		0.4		0.1		0.6		0.2			—		0.3		7.0		7.8		(18.0	)		212.5			(9.7	)
VT		1.0		0.8		0.7		2.0		0.2		0.3		—		0.1		0.1			0.1		0.1		5.4		5.8		(6.7	)		(3.4	)		(6.9	)
VA		9.5		7.1		5.3		5.5		1.4		1.5		0.4		2.1		1.7			0.6		0.5		35.4		35.5		(2.2	)		7.7			(0.4	)
WA		0.5		0.4		0.4		—		—		—		—		—		—			—		0.1		1.5		0.8		62.5		nm				69.3
WV		1.6		1.1		1.1		0.4		0.6		0.1		0.1		—		0.1			0.1		0.3		5.4		6.2		(15.9	)		(19.5	)		(13.3	)
WI		7.2		4.6		3.3		9.2		1.0		0.7		0.5		1.8		1.5			0.8		0.2		30.7		32.6		(7.8	)		6.3			(6.1	)
WY		—		—		—		—		—		0.1		—		—		—			—		—		0.1		0.2		(50.3	)		9.7			(46.4	)
All Other		0.7		0.6		0.7		1.2		—		0.3		—		—		—			—		—		3.6		4.7		(12.3	)		16.1			(12.2	)
Total	$	196.5	$	143.8	$	103.4	$	96.8	$	40.9	$	27.7	$	9.3	$	74.2	$	64.5		$	22.8	$	13.2	$	793.3	$	815.5		(5.7	)		6.8			(2.6	)
Other Direct		—		0.3		—		0.8		—		—		—		—		(0.2	)		—		—		0.9		1.8		(25.7	)		(116.8	)		(63.5	)
Total Direct	$	196.5	$	144.1	$	103.4	$	97.6	$	40.9	$	27.7	$	9.3	$	74.2	$	64.3		$	22.8	$	13.2	$	794.2	$	817.3		(5.7	)		6.0			(2.8	)

Surplus direct premiums written were $13.2 million and $7.6 million for the three months ended March 31, 2010 and 2009, respectively.

*Consolidated change consists of commercial lines, personal lines and E&S.

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

2010 First-Quarter Supplement

11

Quarterly Property Casualty Data - Commercial Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/10	9/30/10	6/30/10	3/31/10			12/31/09			9/30/09			6/30/09			3/31/09			6/30/10	6/30/09			9/30/10	9/30/09			12/31/10	12/31/09
Commercial casualty:
Written premiums				$	191		$	156		$	168		$	171		$	209			$	379			$	548			$	704
Earned premiums					164			166			180			180			187				366				546				712
Loss and loss expenses ratio					58.3	%		64.7	%		45.0	%		54.2	%		55.2	%			54.7	%			51.5	%			54.6	%
Less catastrophe loss ratio					—			—			—			—			—				—				—				—
Loss and loss expenses excluding catastrophe loss ratio					58.3	%		64.7	%		45.0	%		54.2	%		55.2	%			54.7	%			51.5	%			54.6	%
Commercial property:
Written premiums				$	129		$	115		$	124		$	113		$	132			$	245			$	370			$	485
Earned premiums					121			122			122			120			121				241				362				485
Loss and loss expenses ratio					71.0	%		34.9	%		42.8	%		88.3	%		69.0	%			78.6	%			66.6	%			58.6	%
Less catastrophe loss ratio					8.3			(5.1	)		0.6			23.5			7.4				15.4				10.4				6.6
Loss and loss expenses excluding catastrophe loss ratio					62.7	%		40.0	%		42.2	%		64.8	%		61.6	%			63.2	%			56.2	%			52.1	%
Commercial auto:
Written premiums				$	103		$	93		$	92		$	94		$	110			$	204			$	296			$	388
Earned premiums					95			98			99			98			99				197				296				394
Loss and loss expenses ratio					61.0	%		69.3	%		67.9	%		62.5	%		59.7	%			61.1	%			63.4	%			64.9	%
Less catastrophe loss ratio					(1.0	)		0.4			(0.8	)		3.3			(0.1	)			1.6				0.8				0.7
Loss and loss expenses excluding catastrophe loss ratio					62.0	%		68.9	%		68.7	%		59.2	%		59.8	%			59.5	%			62.6	%			64.2	%
Workers' compensation:
Written premiums				$	95		$	71		$	69		$	79		$	104			$	183			$	252			$	323
Earned premiums					74			74			82			88			83				171				253				326
Loss and loss expenses ratio					91.4	%		137.1	%		110.2	%		130.2	%		117.5	%			124.0	%			119.5	%			123.5	%
Less catastrophe loss ratio					—			—			—			—			—				—				—				—
Loss and loss expenses excluding catastrophe loss ratio					91.4	%		137.1	%		110.2	%		130.2	%		117.5	%			124.0	%			119.5	%			123.5	%
Specialty package:
Written premiums				$	39		$	37		$	38		$	35		$	38			$	73			$	110			$	148
Earned premiums					37			37			37			37			35				72				110				147
Loss and loss expenses ratio					89.0	%		40.5	%		33.5	%		114.3	%		96.0	%			105.4	%			81.0	%			70.6	%
Less catastrophe loss ratio					1.1			(10.2	)		(18.2	)		68.8			13.7				41.9				21.5				13.4
Loss and loss expenses excluding catastrophe loss ratio					87.9	%		50.7	%		51.7	%		45.5	%		82.3	%			63.5	%			59.5	%			57.2	%
Surety and executive risk:
Written premiums				$	23		$	23		$	28		$	25		$	25			$	50			$	78			$	101
Earned premiums					24			27			27			25			25				50				77				104
Loss and loss expenses ratio					51.1	%		95.7	%		85.6	%		67.0	%		30.3	%			48.8	%			61.7	%			70.5	%
Less catastrophe loss ratio					—			—			—			—			—				—				—				—
Loss and loss expenses excluding catastrophe loss ratio					51.1	%		95.7	%		85.6	%		67.0	%		30.3	%			48.8	%			61.7	%			70.5	%
Machinery and equipment:
Written premiums				$	8		$	8		$	9		$	7		$	8			$	15			$	24			$	32
Earned premiums					8			8			8			8			7				15				23				31
Loss and loss expense ratio					6.1	%		(47.6	) %		38.4	%		39.7	%		59.3	%			49.3	%			45.6	%			21.6	%
Less catastrophe loss ratio					(1.0	)		(3.5	)		(0.1	)		1.2			4.5				2.8				1.8				0.5
Loss and loss expense excluding catastrophe loss ratio					7.1	%		(44.1	) %		38.5	%		38.5	%		54.8	%			46.5	%			43.8	%			21.1	%

*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.

2010 First-Quarter Supplement

12

Quarterly Property Casualty Data - Personal Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/10	9/30/10	6/30/10	3/31/10			12/31/09			9/30/09			6/30/09			3/31/09			6/30/10	6/30/09			9/30/10	9/30/09			12/31/10	12/31/09
Personal auto:
Written premiums				$	73		$	77		$	90		$	89		$	68			$	157			$	246			$	324
Earned premiums					81			80			80			80			79				159				239				319
Loss and loss expenses ratio					58.2	%		71.8	%		64.9	%		75.7	%		63.6	%			69.7	%			68.1	%			69.0	%
Less catastrophe loss ratio					(0.1	)		(0.8	)		0.6			3.1			0.3				1.7				1.4				0.8
Loss and loss expenses excluding catastrophe loss ratio					58.3	%		72.6	%		64.3	%		72.6	%		63.3	%			68.0	%			66.7	%			68.2	%
Homeowner:
Written premiums				$	60		$	68		$	75		$	76		$	56			$	132			$	208			$	275
Earned premiums					70			69			68			70			70				140				207				276
Loss and loss expenses ratio					76.0	%		53.0	%		96.4	%		147.8	%		132.9	%			140.3	%			126.0	%			107.8	%
Less catastrophe loss ratio					6.9			(2.6	)		18.0			77.6			51.5				64.5				49.4				36.4
Loss and loss expenses excluding catastrophe loss ratio					69.1	%		55.6	%		78.4	%		70.2	%		81.4	%			75.8	%			76.6	%			71.4	%
Other personal:
Written premiums				$	22		$	22		$	25		$	25		$	21			$	45			$	70			$	92
Earned premiums					23			23			22			22			22				44				67				90
Loss and loss expenses ratio					51.5	%		33.8	%		33.8	%		42.6	%		37.8	%			40.2	%			38.0	%			36.9	%
Less catastrophe loss ratio					2.8			0.5			3.4			18.7			11.0				14.8				11.0				8.3
Loss and loss expenses excluding catastrophe loss ratio					48.7	%		33.3	%		30.4	%		23.9	%		26.8	%			25.4	%			27.0	%			28.6	%

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

2010 First-Quarter Supplement

13

Cincinnati Insurance Group (Excludes CSU)

Loss and Loss Expense Analysis

(In millions)			Paid										Loss												Loss
	Paid		loss		Total		Case			IBNR			expense			Total			Case			IBNR			expense			Total
	losses		expense		paid		reserves			reserves			reserves			reserves			incurred			incurred			incurred			incurred
Gross loss and loss expense incurred at March 31, 2010
Commercial casualty	$	96	$	25	$	121	$	(22	)	$	(4	)	$	(12	)	$	(38	)	$	74		$	(4	)	$	13		$	83
Commercial property		60		11		71		12			(2	)		—			10			72			(2	)		11			81
Commercial auto		51		10		61		(3	)		—			—			(3	)		48			—			10			58
Workers' compensation		57		10		67		(3	)		4			1			2			54			4			11			69
Specialty packages		18		4		22		11			(2	)		1			10			29			(2	)		5			32
Surety and executive risk		14		3		17		(8	)		2			—			(6	)		6			2			3			11
Machinery and equipment		1		—		1		(1	)		—			—			(1	)		—			—			—			—
Total commercial lines		297		63		360		(14	)		(2	)		(10	)		(26	)		283			(2	)		53			334
Personal auto		49		8		57		(10	)		—			—			(10	)		39			—			8			47
Homeowners		43		7		50		4			(5	)		—			(1	)		47			(5	)		7			49
Other personal		11		2		13		(3	)		—			—			(3	)		8			—			2			10
Total personal lines		103		17		120		(9	)		(5	)		—			(14	)		94			(5	)		17			106
Total property casualty group	$	400	$	80	$	480	$	(23	)	$	(7	)	$	(10	)	$	(40	)	$	377		$	(7	)	$	70		$	440
Ceded loss and loss expense incurred at March 31, 2010
Commercial casualty	$	61	$	—	$	61	$	(42	)	$	(13	)	$	(19	)	$	(74	)	$	19		$	(13	)	$	(19	)	$	(13	)
Commercial property		2		—		2		(4	)		(3	)		—			(7	)		(2	)		(3	)		—			(5	)
Commercial auto		—		—		—		—			—			—			—			—			—			—			—
Workers' compensation		3		—		3		(1	)		—			—			(1	)		2			—			—			2
Specialty packages		—		—		—		—			(1	)		—			(1	)		—			(1	)		—			(1	)
Surety and executive risk		1		—		1		(3	)		—			—			(3	)		(2	)		—			—			(2	)
Machinery and equipment		—		—		—		—			—			—			—			—			—			—			—
Total commercial lines		67		—		67		(50	)		(17	)		(19	)		(86	)		17			(17	)		(19	)		(19	)
Personal auto		—		—		—		—			—			—			—			—			—			—			—
Homeowners		—		—		—		—			(4	)		—			(4	)		—			(4	)		—			(4	)
Other personal		—		—		—		—			(2	)		—			(2	)		—			(2	)		—			(2	)
Total personal lines		—		—		—		—			(6	)		—			(6	)		—			(6	)		—			(6	)
Total property casualty group	$	67	$	—	$	67	$	(50	)	$	(23	)	$	(19	)	$	(92	)	$	17		$	(23	)	$	(19	)	$	(25	)
Net loss and loss expense incurred at March 31, 2010
Commercial casualty	$	35	$	25	$	60	$	20		$	9		$	7		$	36		$	55		$	9		$	32		$	96
Commercial property		58		11		69		16			1			—			17			74			1			11			86
Commercial auto		51		10		61		(3	)		—			—			(3	)		48			—			10			58
Workers' compensation		54		10		64		(2	)		4			1			3			52			4			11			67
Specialty packages		18		4		22		11			(1	)		1			11			29			(1	)		5			33
Surety and executive risk		13		3		16		(5	)		2			—			(3	)		8			2			3			13
Machinery and equipment		1		—		1		(1	)		—			—			(1	)		—			—			—			—
Total commercial lines		230		63		293		36			15			9			60			266			15			72			353
Personal auto		49		8		57		(10	)		—			—			(10	)		39			—			8			47
Homeowners		43		7		50		4			(1	)		—			3			47			(1	)		7			53
Other personal		11		2		13		(3	)		2			—			(1	)		8			2			2			12
Total personal lines		103		17		120		(9	)		1			—			(8	)		94			1			17			112
Total property casualty group	$	333	$	80	$	413	$	27		$	16		$	9		$	52		$	360		$	16		$	89		$	465

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

2010 First-Quarter Supplement

14

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Consolidated

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/10	9/30/10	6/30/10	3/31/10			12/31/09			9/30/09			6/30/09			3/31/09			6/30/10	6/30/09			9/30/10	9/30/09			12/31/10	12/31/09
Premiums
Agency renewal written premiums				$	682		$	635		$	669		$	666		$	695			$	1,361			$	2,030			$	2,665
Agency new business written premiums					92			94			107			107			97				204				311				405
Other written premiums					(18	)		(49	)		(46	)		(50	)		(14	)			(64	)			(110	)			(159	)
Reported written premiums – statutory*				$	756		$	680		$	730		$	723		$	778			$	1,501			$	2,231			$	2,911
Unearned premium change					(48	)		33			3			10			(46	)			(36	)			(33	)			—
Earned premiums				$	708		$	713		$	733		$	733		$	732			$	1,465			$	2,198			$	2,911
Year over year change %
Agency renewal written premiums					(2	) %		(5	) %		(3	) %		(10	) %		(5	) %			(8	) %			(6	) %			(6	) %
Agency new business written premiums					(5	)		(6	)		15			7			28				17				16				10
Other written premiums					(29	)		6			13			(4	)		58				21				19				15
Reported written premiums – statutory*					(3	)		(5	)		0			(8	)		0				(4	)			(3	)			(3	)
Paid losses and loss expenses
Losses paid				$	334		$	381		$	390		$	412		$	401			$	813			$	1,203			$	1,584
Loss expenses paid					80			96			83			84			78				162				245				340
Loss and loss expenses paid				$	414		$	477		$	473		$	496		$	479			$	975			$	1,448			$	1,924
Statutory combined ratio
Loss ratio					54.3	%		49.9	%		50.2	%		71.6	%		62.5	%			67.0	%			61.4	%			58.6	%
Allocated loss expense ratio					6.0			7.4			6.1			6.7			4.9				5.8				5.9				6.3
Unallocated loss expense ratio					6.7			7.7			6.4			6.3			6.8				6.6				6.5				6.8
Net underwriting expense ratio					34.1			34.1			34.2			32.0			30.9				31.4				32.4				32.7
Statutory combined ratio					101.1	%		99.1	%		96.9	%		116.6	%		105.1	%			110.8	%			106.2	%			104.4	%
Contribution from catastrophe losses					2.1			(1.7	)		0.9			16.1			7.2				11.6				8.1				5.7
Statutory combined ratio excluding catastrophe losses					99.0	%		100.8	%		96.0	%		100.5	%		97.9	%			99.2	%			98.1	%			98.7	%
Commission expense ratio					18.4	%		20.4	%		20.1	%		18.2	%		17.7	%			17.9	%			18.7	%			19.0	%
Other expense ratio					15.7			13.7			14.1			13.8			13.2				13.5				13.7				13.7
Statutory expense ratio					34.1	%		34.1	%		34.2	%		32.0	%		30.9	%			31.4	%			32.4	%			32.7	%
GAAP combined ratio
GAAP combined ratio					102.6	%		98.6	%		95.1	%		116.6	%		107.5	%			112.1	%			106.4	%			104.5	%
Contribution from catastrophe losses					2.1			(1.7	)		0.9			16.1			7.2				11.6				8.1				5.7
GAAP combined ratio excluding catastrophe losses					100.5	%		100.3	%		94.2	%		100.5	%		100.3	%			100.5	%			98.3	%			98.8	%

*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.

2010 First-Quarter Supplement

15

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Commercial Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/10	9/30/10	6/30/10	3/31/10			12/31/09			9/30/09			6/30/09			3/31/09			6/30/10	6/30/09			9/30/10	9/30/09			12/31/10	12/31/09
Premiums
Agency renewal written premiums				$	533		$	478		$	489		$	488		$	557			$	1,045			$	1,535			$	2,013
Agency new business written premiums					66			67			76			79			76				155				231				298
Other written premiums					(11	)		(42	)		(37	)		(43	)		(7	)			(51	)			(88	)			(130	)
Reported written premiums – statutory*				$	588		$	503		$	528		$	524		$	626			$	1,149			$	1,678			$	2,181
Unearned premium change					(65	)		29			27			32			(69	)			(37	)			(11	)			18
Earned premiums				$	523		$	532		$	555		$	556		$	557			$	1,112			$	1,667			$	2,199
Year over year change %
Agency renewal written premiums					(4	) %		(7	) %		(3	) %		(12	) %		(5	) %			(8	) %			(7	) %			(7	) %
Agency new business written premiums					(13	)		(19	)		0			(9	)		15				1				1				(4	)
Other written premiums					(57	)		7			10			(2	)		76				30				21				17
Reported written premiums – statutory*					(6	)		(9	)		(2	)		(12	)		0				(6	)			(5	)			(6	)
Paid losses and loss expenses
Losses paid				$	230		$	267		$	267		$	275		$	271			$	546			$	813			$	1,080
Loss expenses paid					63			76			66			67			60				126				192				268
Loss and loss expenses paid				$	293		$	343		$	333		$	342		$	331			$	672			$	1,005			$	1,348
Statutory combined ratio
Loss ratio					53.8	%		50.2	%		46.2	%		66.0	%		57.6	%			61.8	%			56.7	%			55.1	%
Allocated loss expense ratio					7.1			8.7			7.1			7.8			5.8				6.8				6.9				7.3
Unallocated loss expense ratio					6.6			7.9			6.0			5.7			6.4				6.0				6.0				6.5
Net underwriting expense ratio					31.9			35.1			35.6			32.5			29.2				30.8				32.2				32.9
Statutory combined ratio					99.3	%		102.0	%		94.9	%		112.0	%		99.0	%			105.4	%			101.8	%			101.8	%
Contribution from catastrophe losses					1.8			(1.8	)		(1.2	)		10.2			2.5				6.4				3.8				2.5
Statutory combined ratio excluding catastrophe losses					97.5	%		103.8	%		96.1	%		101.8	%		96.5	%			99.0	%			98.0	%			99.3	%
Commission expense ratio					17.2	%		20.0	%		20.3	%		18.1	%		16.4	%			17.2	%			18.2	%			18.6	%
Other expense ratio					14.7			15.1			15.3			14.4			12.8				13.5				14.0				14.3
Statutory expense ratio					31.9	%		35.1	%		35.6	%		32.5	%		29.2	%			30.7	%			32.2	%			32.9	%
GAAP combined ratio
GAAP combined ratio					102.1	%		100.8	%		92.4	%		110.9	%		102.2	%			106.6	%			101.9	%			101.6	%
Contribution from catastrophe losses					1.8			(1.8	)		(1.2	)		10.2			2.5				6.4				3.8				2.5
GAAP combined ratio excluding catastrophe losses					100.3	%		102.6	%		93.6	%		100.7	%		99.7	%			100.2	%			98.1	%			99.1	%

*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.

2010 First-Quarter Supplement

16

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Personal Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/10	9/30/10	6/30/10	3/31/10			12/31/09			9/30/09			6/30/09			3/31/09			6/30/10	6/30/09			9/30/10	9/30/09			12/31/10	12/31/09
Premiums
Agency renewal written premiums				$	143		$	153		$	177		$	176		$	137			$	313			$	490			$	642
Agency new business written premiums					18			20			21			19			14				34				55				75
Other written premiums					(6	)		(6	)		(8	)		(5	)		(6	)			(13	)			(21	)			(26	)
Reported written premiums – statutory*				$	155		$	167		$	190		$	190		$	145			$	334			$	524			$	691
Unearned premium change					19			5			(20	)		(18	)		26				9				(11	)			(6	)
Earned premiums				$	174		$	172		$	170		$	172		$	171			$	343			$	513			$	685
Year over year change %
Agency renewal written premiums					4	%		(2	) %		(4	) %		(5	) %		(6	) %			(6	) %			(5	) %			(4	) %
Agency new business written premiums					29			82			91			90			75				79				83				79
Other written premiums					0			25			33			0			(50	)			(30	)			5				10
Reported written premiums – statutory*					7			5			3			(1	)		(3	)			(2	)			0				1
Paid losses and loss expenses
Losses paid				$	103		$	112		$	121		$	137		$	130			$	267			$	389			$	501
Loss expenses paid					17			19			18			18			18				35				52				71
Loss and loss expenses paid				$	120		$	131		$	139		$	155		$	148			$	302			$	441			$	572
Statutory combined ratio
Loss ratio					55.3	%		49.4	%		63.1	%		90.1	%		78.3	%			84.2	%			77.1	%			70.2	%
Allocated loss expense ratio					1.9			2.7			2.4			2.4			1.9				2.2				2.2				2.4
Unallocated loss expense ratio					7.2			7.1			7.8			8.2			8.3				8.3				8.1				7.8
Net underwriting expense ratio					42.1			30.2			29.5			29.8			35.4				32.1				31.2				31.0
Statutory combined ratio					106.5	%		89.4	%		102.8	%		130.5	%		123.9	%			126.8	%			118.7	%			111.4	%
Contribution from catastrophe losses					3.0			(1.4	)		7.9			35.4			22.6				29.0				22.0				16.1
Statutory combined ratio excluding catastrophe losses					103.5	%		90.8	%		94.9	%		95.1	%		101.3	%			97.8	%			96.7	%			95.3	%
Commission expense ratio					22.4	%		20.9	%		19.1	%		18.0	%		22.5	%			20.0	%			19.6	%			20.0	%
Other expense ratio					19.7			9.3			10.4			11.7			12.9				12.2				11.6				11.0
Statutory expense ratio					42.1	%		30.2	%		29.5	%		29.7	%		35.4	%			32.2	%			31.2	%			31.0	%
GAAP combined ratio
GAAP combined ratio					102.5	%		90.9	%		102.3	%		133.2	%		120.7	%			126.9	%			118.7	%			111.8	%
Contribution from catastrophe losses					3.0			(1.4	)		7.9			35.4			22.6				29.0				22.0				16.1
GAAP combined ratio excluding catastrophe losses					99.5	%		92.3	%		94.4	%		97.8	%		98.1	%			97.9	%			96.7	%			95.7	%

*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.

2010 First-Quarter Supplement

17

The Cincinnati Life Insurance Company

Statutory Statements of Income

	For the Three Months Ended March 31,
(Dollars in millions)	2010			2009			Change			% Change
Net premiums written	$	104		$	48		$	56			115
Net investment income		33			30			3			12
Amortization of interest maintenance reserve		(1	)		(2	)		1			59
Commissions and expense allowances on reinsurance ceded		2			2			—			(10	)
Income from fees associated with Separate Accounts		1			1			—			(14	)
Total revenues	$	139		$	79		$	60			76
Death benefits and matured endowments	$	13		$	17		$	(4	)		(25	)
Annuity benefits		9			10			(1	)		(4	)
Disability benefits and benefits under accident and health contracts		1			—			1			nm
Surrender benefits and group conversions		5			5			—			1
Interest and adjustments on deposit-type contract funds		3			3			—			(8	)
Increase in aggregate reserves for life and accident and health contracts		84			28			56			205
Total benefit expenses	$	115		$	63		$	52			82
Commissions	$	12		$	8		$	4			43
General insurance expenses and taxes		10			9			1			11
Increase in loading on deferred and uncollected premiums		(1	)		—			(1	)		nm
Net transfers from Separate Accounts		—			(2	)		2			nm
Total operating expenses	$	21		$	15		$	6			41
Federal and foreign income tax benefit		(4	)		(3	)		(1	)		(19	)
Net gain from operations before realized capital gains or (losses)	$	7		$	4		$	3			64
Net realized gains or (losses) net of capital gains tax		2			(6	)		8			nm
Net income (loss) (statutory)	$	9		$	(2	)	$	11			nm

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

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

2010 First-Quarter Supplement

18