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:  February 2, 2011

(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 February 2, 2011, Cincinnati Financial Corporation issued the attached news release titled “Cincinnati Financial Reports Fourth-Quarter and Full-Year 2010 Results,” furnished as Exhibit 99.1 hereto and incorporated herein by reference. On February 2, 2011, 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.

2

Item 9.01 Financial Statements and Exhibits.

(c)   Exhibits

Exhibit 99.1 – News release dated February 2, 2011, “Cincinnati Financial Reports Fourth-Quarter and Full-Year 2010 Results”

Exhibit 99.2 – Supplemental Financial Data for the period ending December 31, 2010 distributed February 2, 2011.

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: February 2, 2011	/S/Steven J. Johnston
	Steven J. Johnston, FCAS, MAAA, CFA
	Chief Financial Officer, Senior Vice President, Secretary and Treasurer

3

EX-99.1

	CINCINNATIFINANCIALCORPORATION
	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 Fourth-Quarter and Full-Year 2010 Results

Cincinnati, February 2, 2011– Cincinnati Financial Corporation (Nasdaq: CINF) today reported:

· Fourth-quarter 2010 net income of $126 million, or 77 cents per share, compared with $245 million, or $1.50 per share, in the fourth quarter of 2009; operating income* of $113 million, or 70 cents per share, up 32 percent compared with $86 million, or 53 cents per share.

· Full-year 2010 net income of $377 million, or $2.31 per share, compared with $432 million, or $2.65, in 2009. Operating income of $274 million, or $1.68 per share, up 27 percent compared with $215 million, or $1.32.

· $55 million decrease in full-year 2010 net income reflected the after-tax net effect of three major items: a $114 million decrease from net realized investment gains, partially offset by a $53 million improvement in property casualty underwriting results and $9 million growth in investment income. Net income and operating income for the fourth quarter of 2010 benefited from property casualty insurance results that were up by $26 million after taxes.

· $30.91 book value per share at December 31, 2010, up 6 percent for the year and less than 1 percent for the quarter.

· 11.1 percent value creation ratio for the year 2010.

Financial Highlights

(Dollars in millions except share data)	Three months ended December 31,							Twelve months ended December 31,
	2010		2009		Change %			2010		2009		Change %
Revenue Highlights
Earned premiums	$	783	$	752		4		$	3,082	$	3,054		1
Investment income, pre-tax		130		131		(1	)		518		501		3
Total revenues		936		1,133		(17	)		3,772		3,903		(3	)
Income Statement Data
Net income	$	126	$	245		(49	)	$	377	$	432		(13	)
Net realized investment gains and losses		13		159		(92	)		103		217		(53	)
Operating income*	$	113	$	86		32		$	274	$	215		27
Per Share Data (diluted)
Net income	$	0.77	$	1.50		(49	)	$	2.31	$	2.65		(13	)
Net realized investment gains and losses		0.07		0.97		(92	)		0.63		1.33		(53	)
Operating income*	$	0.70	$	0.53		32		$	1.68	$	1.32		27
Book value								$	30.91	$	29.25		6
Cash dividend declared	$	0.40	$	0.395		1		$	1.59	$	1.57		1
Diluted weighted average shares outstanding		163,392,133		163,092,882		0			163,274,491		162,866,863		0

Insurance Operations Fourth-Quarter Highlights

· 93.1 percent fourth-quarter 2010 property casualty combined ratio and 6 percent increase in net written premiums, including personal lines segment growth of 10 percent. Full-year 2010 property casualty combined ratio at 101.7 percent, with 2 percent increase in net written premiums, including personal lines segment growth of 9 percent.

· $107 million fourth-quarter and $414 million full-year 2010 property casualty new business written by agencies, up $13 million and $9 million, respectively. The full-year increase included $15 million from personal lines.

· 8 cents per share contribution from life insurance operating income to fourth-quarter results, up 2 cents from 2009. Full-year contribution to operating income from life insurance was 23 cents per share, up 1 cent.

Investment and Balance Sheet Highlights

· 1 percent decline in fourth-quarter 2010 after-tax investment income. 2 percent growth on a full-year basis, driven by pre-tax interest income growth of 5 percent.

· 6 percent full-year increase in fair value of invested assets plus cash at December 31, 2010, including fourth-quarter equity portfolio growth of 10 percent partially offset by a decline for the bond portfolio of 1 percent.

· $1.042 billion parent company cash and marketable securities at December 31, 2010, up almost 5 percent from a year ago.

* The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures on Page 10 defines and reconciles measures presented in this release that are not based on Generally Accepted Accounting Principles.

** Forward-looking statements and related assumptions are subject to the risks outlined in the company’s safe harbor statement (see Page 7).

1

Higher Operating Income and Book Value

Kenneth W. Stecher, president and chief executive officer, commented, “Results from our property casualty insurance business trended positively in the fourth quarter, significantly improving our full-year 2010 performance. We achieved our best quarterly results of the year, with the highest written premium growth, lowest catastrophe losses and best combined ratio.

“Healthy underwriting gains for the fourth quarter surpassed the gain in 2009’s final quarter and partially offset underwriting losses in earlier 2010 quarters. Underwriting results continued to benefit in the fourth quarter and full year 2010 from our commitment to maintain consistent, careful reserving practices and from our initiatives to grow and to improve price precision.

“The full-year combined ratio improved 2.8 percentage points from last year. While weather-related catastrophes accounted for 0.6 percentage points of the improvement, the remainder reflects adequate reserving and quality underwriting that we believe will continue to improve. Prudent expense management has always been part of our culture, and we managed to trim expenses in some areas while investing in other areas of strategic importance, such as information technology, loss control and expansion into new markets. The net effect was a property casualty underwriting expense ratio that was even with 2009, in line with flat earned premiums for the year.

“Investment income, our primary source of profits, held steady. Along with the underwriting gains, they contributed to operating income that reached the highest quarterly level since fourth quarter 2007. Net income, which includes net realized investment gains, declined compared with the 2009 fourth quarter and full year, largely because we chose to take large gains in the 2009 periods from opportunistic sales of equity securities in our investment portfolio.

“During the 2010 fourth quarter, unrealized investment gains due to capital appreciation of our equity portfolio rose 30 percent. We chose to hold most of these unrealized gains in the portfolio, raising our property casualty surplus 4 percent and taking book value per share to its highest level since 2008’s first quarter, as equity gains largely offset lower valuations in our bond portfolio. Book value rose $1.66 per share since December 2009, and we paid shareholders $1.59 in cash dividends, which have steadily increased for 50 consecutive years.

“While our higher mix of equities relative to other insurer portfolios can contribute to variability of several balance sheet-related measures, we have the financial strength to absorb short-term effects, allowing equity gains to contribute to higher shareholders’ equity and book value over time. Our larger allocation to equities has the added benefit of potentially increasing dividends, and therefore investment income.”

Executing on Our Plans

Stecher noted, “We are rising to the challenges of the current environment, as demonstrated by our fourth-quarter progress on both the insurance and the investment sides of our business. To help offset the unfavorable premium revenue effect of commercial insurance pricing declines in the low single digits, we continued our expansion initiatives in the fourth quarter by appointing our first Connecticut and Oregon agencies and adding new agency relationships there and in many of our 37 other states. We expanded our product offerings in targeted markets and excess and surplus lines, and improved our mix of business in personal lines by continuing to refine our rates. We completed the 30-state rollout of our new policy administration system for commercial packages, on time and on budget.

“In 2010 and going forward, we continue to develop business data to support underwriting, pricing and business decisions. Pricing precision helps maintain adequate pricing for individual risks even when overall market pricing is declining. While we generally market on an account basis, preferring to package most or all of a policyholder’s property casualty coverages, we seek to write each line of business to be independently profitable. We now use predictive analytics tools to model and manage our capital and enterprise risk, and to increase pricing precision and improve loss ratios in lines of business including workers’ compensation, homeowners and, most recently, personal auto. In 2011, we will integrate predictive tools for general liability and commercial property into our policy administration systems. With improved data capabilities and tools, we expect to enhance our planning support for agency-level profitability and enhance internal processes for added efficiency, cost savings and accountability.

“These ongoing efforts are strengthening our competitive position, adding to the advantages we provide to our independent agent representatives and their clients. Being agency-centered was the strategy of our founders when the first Cincinnati policy was issued in January 1951. Sixty years later, we see that same strategy bringing great opportunity for growth, profits and shareholder value as the economy and the commercial insurance marketplace begin to improve.”

2

Consolidated Property Casualty Insurance Operations

(Dollars in millions)	Three months ended December 31,									Twelve months ended December 31,
	2010			2009			Change %			2010			2009			Change %
Agency renewal written premiums	$	648		$	635			2		$	2,692		$	2,665			1
Agency new business written premiums		107			94			14			414			405			2
Other written premiums		(33	)		(49	)		33			(143	)		(159	)		10
Net written premiums		722			680			6			2,963			2,911			2
Unearned premium change		23			33			(30	)		(39	)		0		nm
Earned premiums		745			713			4			2,924			2,911			0
Fee revenues		1			1			0			4			3			33
Total premiums and fee revenues		746			714			4			2,928			2,914			0
Loss and loss expenses		455			464			(2	)		2,015			2,086			(3	)
Underwriting expenses		240			239			0			960			956			0
Underwriting profit (loss)	$	51		$	11			364		$	(47	)	$	(128	)		63
Ratios as a percent of earned premiums:							Pt. Change									Pt. Change
Current accident year before catastrophe losses		77.6	%		77.0	%		0.6			73.6	%		72.2	%		1.4
Current accident year catastrophe losses		0.9			(1.6	)		2.5			5.6			5.9			(0.3	)
Prior accident years before catastrophe losses		(17.4	)		(10.3	)		(7.1	)		(9.8	)		(6.2	)		(3.6	)
Prior accident years catastrophe losses		(0.2	)		(0.1	)		(0.1	)		(0.5	)		(0.2	)		(0.3	)
Total loss and loss expenses		60.9			65.0			(4.1	)		68.9			71.7			(2.8	)
Underwriting expenses		32.2			33.6			(1.4	)		32.8			32.8			0.0
Combined ratio		93.1	%		98.6	%		(5.5	)		101.7	%		104.5	%		(2.8	)
Contribution from catastrophe losses and prior years
reserve development		(16.7	)		(12.0	)		(4.7	)		(4.7	)		(0.5	)		(4.2	)
Combined ratio before catastrophe losses and prior
years reserve development		109.8	%		110.6	%		(0.8	)		106.4	%		105.0	%		1.4

· 6 percent and 2 percent increase in fourth-quarter and full-year 2010 property casualty net written premiums. Full-year growth of $52 million largely reflects targeted growth initiatives including $59 million from personal lines and $19 million from excess and surplus lines, partially offset by a decline in commercial lines net written premiums.

· $9 million increase to $414 million in 2010 new business written by agencies reflected the contribution from new agency appointments and other growth initiatives in recent years. $29 million of the increase was from standard market property casualty new business produced by agencies appointed since the beginning of 2009.

· 1,245 agency relationships in 1,544 reporting locations marketing standard market property casualty insurance products at December 31, 2010, compared with 1,180 agency relationships in 1,463 reporting locations at year-end 2009. Ninety-three new agency appointments were made during 2010, exceeding the initial full-year target of 65. The company now markets in 39 states including Oregon, where its first agency was appointed in November.

· 5.5 percentage-point fourth-quarter 2010 improvement and 2.8 percentage-point full-year improvement in the combined ratio, driven primarily by a higher level of benefit from favorable prior accident year reserve development.

· Underwriting results benefited from favorable prior accident year reserve development of $131 million for the fourth quarter and $304 for the full year, compared with $74 million and $188 million for the same periods of 2009.

· Expense management efforts helped keep the full-year underwriting expense ratio even despite flat earned premiums.

The following table shows incurred catastrophe losses for 2010 and 2009.

(In millions, net of reinsurance)			Three months ended December 31,												Twelve months ended December 31,
			Commercial				Personal			E&S					Commercial			Personal			E&S
Dates	Cause of loss	Region		lines			lines			lines		Total			lines			lines			lines		Total
2010
First quarter catastrophes				$	-		$	-		$	-	$	-		$	13		$	5		$	-	$	18
Second quarter catastrophes					(5	)		(3	)		-		(8	)		52			41			1		94
Third quarter catastrophes					(1	)		(1	)		-		(2	)		24			12			-		36
Oct. 4-6	Flood, hail, wind	South			6			1			-		7			6			1			-		7
Oct. 26-28	Flood, hail, tornado, wind	Midwest			6			4			-		10			6			4			-		10
All other fourth quarter 2010 catastrophes					-			-			-		-			-			-			-		-
Development on 2009 and prior catastrophes					-			(2	)		-		(2	)		(12	)		(5	)		-		(17	)
Calendar year incurred total				$	6		$	(1	)	$	-	$	5		$	89		$	58		$	1	$	148
2009
First quarter catastrophes				$	(1	)	$	-		$	-	$	(1	)	$	20		$	49		$	-	$	69
Second quarter catastrophes					(10	)		(2	)		-		(12	)		37			50			-		87
Third quarter catastrophes					3			(1	)		-		2			9			7			-		16
Fourth quarter catastrophes					-			-			-		-			-			-			-		-
Development on 2008 and prior catastrophes					(2	)		1			-		(1	)		(12	)		5			-		(7	)
Calendar year incurred total				$	(10	)	$	(2	)	$	-	$	(12	)	$	54		$	111		$	-	$	165

3

Insurance Operations Highlights

Commercial Lines Insurance Operations

(Dollars in millions)	Three months ended December 31,									Twelve months ended December 31,
	2010			2009			Change %			2010			2009			Change %
Agency renewal written premiums	$	474		$	478			(1	)	$	1,978		$	2,013			(2	)
Agency new business written premiums		76			67			13			289			298			(3	)
Other written premiums		(26	)		(42	)		38			(112	)		(130	)		14
Net written premiums		524			503			4			2,155			2,181			(1	)
Unearned premium change		22			29			(24	)		(1	)		18		nm
Earned premiums		546			532			3			2,154			2,199			(2	)
Fee revenues		-			-		nm				2			2			0
Total premiums and fee revenues		546			532			3			2,156			2,201			(2	)
Loss and loss expenses		319			356			(10	)		1,437			1,515			(5	)
Underwriting expenses		175			180			(3	)		704			719			(2	)
Underwriting profit (loss)	$	52		$	(4	)	nm			$	15		$	(33	)	nm
Ratios as a percent of earned premiums:							Pt. Change									Pt. Change
Current accident year before catastrophe losses		78.5	%		79.5	%		(1.0	)		74.5	%		72.5	%		2.0
Current accident year catastrophe losses		1.0			(1.5	)		2.5			4.7			3.0			1.7
Prior accident years before catastrophe losses		(21.0	)		(10.8	)		(10.2	)		(11.9	)		(6.1	)		(5.8	)
Prior accident years catastrophe losses		0.0			(0.3	)		0.3			(0.6	)		(0.5	)		(0.1	)
Total loss and loss expenses		58.5			66.9			(8.4	)		66.7			68.9			(2.2	)
Underwriting expenses		32.1			33.9			(1.8	)		32.7			32.7			0.0
Combined ratio		90.6	%		100.8	%		(10.2	)		99.4	%		101.6	%		(2.2	)
Contribution from catastrophe losses and prior years
reserve development		(20.0	)		(12.6	)		(7.4	)		(7.8	)		(3.6	)		(4.2	)
Combined ratio before catastrophe losses and prior
years reserve development		110.6	%		113.4	%		(2.8	)		107.2	%		105.2	%		2.0

· 1 percent decline in full-year 2010 commercial lines net written premiums reflected low-single-digit pricing declines for renewals and a 3 percent decline in new business.  Fourth-quarter net written premium growth benefited from a larger adjustment for estimated premiums of policies in effect but not yet processed.

· $9 million increase to $76 million in fourth-quarter 2010 new business premiums, returning to approximately the fourth-quarter average of $78 million for 2005 through 2008.

· $2 million full-year fee revenues, primarily from premium installment fees collected. Similar fees apply to personal lines. Fee revenues are included in underwriting profit or loss but are not included in the combined ratio.

· 10.2 percentage-point fourth-quarter 2010 combined ratio improvement primarily due to a greater amount of favorable loss reserve development for prior accident years. Loss reserving practices remain consistent with the past.

· 2.2 percentage-point full-year 2010 combined ratio improvement primarily due to a greater amount of favorable loss reserve development for prior accident years. The combined ratio was below 100 percent despite 4.1 percentage points in catastrophe losses that were 1.4 percentage points higher than the average for the previous 10 years.

4

Personal Lines Insurance Operations

(Dollars in millions)	Three months ended December 31,									Twelve months ended December 31,
	2010			2009			Change %			2010			2009			Change %
Agency renewal written premiums	$	166		$	153			8		$	685		$	642			7
Agency new business written premiums		23			20			15			90			75			20
Other written premiums		(6	)		(6	)		0			(25	)		(26	)		4
Net written premiums		183			167			10			750			691			9
Unearned premium change		3			5			(40	)		(29	)		(6	)		(383	)
Earned premiums		186			172			8			721			685			5
Fee revenues		1			-		nm				2			1			100
Total premiums and fee revenues		187			172			9			723			686			5
Loss and loss expenses		130			102			27			537			551			(3	)
Underwriting expenses		60			54			11			240			215			12
Underwriting (loss) profit	$	(3	)	$	16			(119	)	$	(54	)	$	(80	)		33
Ratios as a percent of earned premiums:							Pt. Change									Pt. Change
Current accident year before catastrophe losses		77.2	%		69.6	%		7.6			70.4	%		70.9	%		(0.5	)
Current accident year catastrophe losses		0.5			(1.7	)		2.2			8.8			15.4			(6.6	)
Prior accident years before catastrophe losses		(7.0	)		(9.0	)		2.0			(4.1	)		(6.6	)		2.5
Prior accident years catastrophe losses		(0.8	)		0.3			(1.1	)		(0.7	)		0.7			(1.4	)
Total loss and loss expenses		69.9			59.2			10.7			74.4			80.4			(6.0	)
Underwriting expenses		32.0			31.7			0.3			33.3			31.4			1.9
Combined ratio		101.9	%		90.9	%		11.0			107.7	%		111.8	%		(4.1	)
Contribution from catastrophe losses and prior years
reserve development		(7.3	)		(10.4	)		3.1			4.0			9.5			(5.5	)
Combined ratio before catastrophe losses and prior
years reserve development		109.2	%		101.3	%		7.9			103.7	%		102.3	%		1.4

· 10 percent and 9 percent growth in fourth-quarter and full-year 2010 personal lines net written premiums, largely driven by higher renewal and new business written premiums that reflected improved pricing.

· 11.0 point rise in fourth-quarter combined ratio primarily due to a higher level of large losses and weather-related losses.

· 4.1 percentage-point full-year combined ratio improvement driven by lower losses, primarily from weather-related catastrophes, but also other losses that included the effect of improved pricing.

Life Insurance Operations

(In millions)	Three months ended December 31,							Twelve months ended December 31,
	2010		2009		Change %			2010		2009		Change %
Term life insurance	$	24	$	22		9		$	96	$	86		12
Universal life insurance		6		8		(25	)		35		28		25
Other life insurance, annuity, and disability income products		8		9		(11	)		27		29		(7	)
Earned premiums		38		39		(3	)		158		143		10
Investment income, net of expenses		32		32		0			129		122		6
Other income		-		-	nm				1		-	nm
Total revenues, excluding realized investment gains and losses		70		71		(1	)		288		265		9
Contract holders benefits		41		42		(2	)		170		160		6
Underwriting expenses		10		15		(33	)		61		50		22
Total benefits and expenses		51		57		(11	)		231		210		10
Net income before income tax and realized investment gains and losses		19		14		36			57		55		4
Income tax		7		5		40			20		19		5
Net income before realized investment gains and losses	$	12	$	9		33		$	37	$	36		3

· $15 million or 10 percent growth in full-year 2010 earned premiums, including 12 percent for term life insurance, our largest life insurance product line. 6 percent rise in face amount of life policies in force to $74.124 billion at December 31, 2010, from $69.815 billion at year-end 2009.

· $20 million or 11 percent growth to $201 million in full-year 2010 fixed annuity deposits received. Cincinnati Life does not offer variable or indexed products.

· $82 million or 12 percent full-year 2010 growth to $748 million in GAAP shareholders’ equity for The Cincinnati Life Insurance Company.

5

Investment and Balance Sheet Highlights

Investment Operations

(In millions)	Three months ended December 31,									Twelve months ended December 31,
	2010			2009			Change %			2010			2009			Change %
Total investment income, net of expenses, pre-tax	$	130		$	131			(1	)	$	518		$	501			3
Investment interest credited to contract holders		(19	)		(18	)		(5	)		(79	)		(69	)		(13	)
Realized investment gains and losses summary:
Realized investment gains and losses, net		15			261			(94	)		185			440			(58	)
Change in fair value of securities with embedded derivatives		4			4			0			10			27			(63	)
Other-than-temporary impairment charges		-			(18	)	nm				(36	)		(131	)		264
Total realized investment gains and losses, net		19			247			(92	)		159			336			(53	)
Investment operations income	$	130		$	360			(64	)	$	598		$	768			(22	)

(In millions)	Three months ended December 31,									Twelve months ended December 31,
	2010			2009			Change %			2010			2009			Change %
Investment income:
Interest	$	105		$	105			0		$	423		$	402			5
Dividends		26			27			(4	)		99			100			(1	)
Other		1			1			0			4			7			(43	)
Investment expenses		(2	)		(2	)		0			(8	)		(8	)		0
Total investment income, net of expenses, pre-tax		130			131			(1	)		518			501			3
Income taxes		(32	)		(32	)		0			(126	)		(118	)		(6	)
Total investment income, net of expenses, after-tax	$	98		$	99			(1	)	$	392		$	383			2
Effective tax rate		24.2	%		24.1	%					24.4	%		23.6	%
Average yield pre-tax		4.4	%		4.7	%					4.5	%		4.7	%
Average yield after-tax		3.3	%		3.6	%					3.4	%		3.6	%

· 1 percent fourth-quarter 2010 decline in pre-tax investment income lagged 3 percent growth for the full year. A year-over-year decline in bond yields drove the current quarter decline while relatively higher growth in average invested assets offset lower bond yields for the full-year period.

· $224 million or 22 percent full-year 2010 increase in pre-tax unrealized investment portfolio gains, including $70 million for the equity portfolio. $185 million of realized gains were harvested from the investment portfolio during 2010, including $174 from the equity portfolio.

(Dollars in millions except share data)	At December 31,			At December 31,
	2010			2009
Balance sheet data
Invested assets	$	11,508		$	10,643
Total assets		15,095			14,440
Short-term debt		49			49
Long-term debt		790			790
Shareholders' equity		5,032			4,760
Book value per share		30.91			29.25
Debt-to-total-capital ratio		14.3	%		15.0	%

	Three months ended December 31,						Twelve months ended December 31,
	2010			2009			2010			2009
Performance measure
Value creation ratio		1.7	%		4.2	%		11.1	%		19.7	%

· $11.893 billion in cash and invested assets at December 31, 2010, up 6 percent from $11.200 billion at December 31, 2009.

· $8.383 billion bond portfolio at December 31, 2010, with an average rating of A2/A. 7 percent full-year 2010 growth in fair value.

· $3.041 billion equity portfolio was 26.4 percent of invested assets, including $755 million in pre-tax net unrealized gains at December 31, 2010. 13 percent full-year 2010 growth in fair value.

· $3.777 billion of statutory surplus for the property casualty insurance group at December 31, 2010, up 4 percent from $3.648 billion a year ago despite returning $210 million or 6 percent through dividends to the parent company. Ratio of net written premiums to property casualty statutory surplus for the 12 months ended December 31, 2010, of 0.8-to-1, unchanged from the 12 months ended December 31, 2009.

· Value creation ratio of 11.1 percent for the year 2010 is the sum of 5.4 percent from shareholder dividends plus 5.7 percent from growth in book value per share.

6

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: P.O. Box 145496 Cincinnati, Ohio 45250-5496	Street Address: 6200 South Gilmore Road 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 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 that 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 measures affecting corporate financial reporting and governance. The ultimate changes and eventual effects, if any, of these initiatives are uncertain.

* * *

7

Cincinnati Financial Corporation

Consolidated Balance Sheets (unaudited)

(In millions except per share data)	December 31,			December 31,
	2010			2009
ASSETS
Investments
Fixed maturities, at fair value (amortized cost: 2010—$7,888; 2009—$7,514)	$	8,383		$	7,855
Equity securities, at fair value (cost: 2010—$2,286; 2009—$2,016)		3,041			2,701
Short-term investments, at fair value (amortized cost: 2010—$0; 2009—$6)		-			6
Other invested assets		84			81
Total investments		11,508			10,643
Cash and cash equivalents		385			557
Investment income receivable		119			118
Finance receivable		73			75
Premiums receivable		1,015			995
Reinsurance receivable		572			675
Prepaid reinsurance premiums		18			15
Deferred policy acquisition costs		488			481
Land, building and equipment, net, for company use (accumulated depreciation: 2010—$352; 2009—$335)		229			251
Other assets		67			45
Separate accounts		621			585
Total assets	$	15,095		$	14,440
LIABILITIES
Insurance reserves
Loss and loss expense reserves	$	4,200		$	4,142
Life policy reserves		2,034			1,783
Unearned premiums		1,553			1,509
Other liabilities		556			670
Deferred income tax		260			152
Note payable		49			49
Long-term debt		790			790
Separate accounts		621			585
Total liabilities		10,063			9,680
SHAREHOLDERS' EQUITY
Common stock, par value—$2 per share; (authorized: 2010—500 million shares, 2009—500 million shares; issued: 2010—196 million shares, 2009—196 million shares)		393			393
Paid-in capital		1,091			1,081
Retained earnings		3,980			3,862
Accumulated other comprehensive income		769			624
Treasury stock at cost (2010—34 million shares, 2009—34 million shares)		(1,201	)		(1,200	)
Total shareholders' equity		5,032			4,760
Total liabilities and shareholders' equity	$	15,095		$	14,440

8

Cincinnati Financial Corporation

Consolidated Statements of Income (unaudited)

(In millions except per share data)	Three months ended December 31,				Twelve months ended December 31,
	2010		2009		2010		2009
REVENUES
Earned premiums	$	783	$	752	$	3,082	$	3,054
Investment income, net of expenses		130		131		518		501
Realized investment gains and losses		19		247		159		336
Fee revenues		1		1		4		3
Other revenues		3		2		9		9
Total revenues		936		1,133		3,772		3,903
BENEFITS AND EXPENSES
Insurance losses and policyholder benefits		494		505		2,180		2,242
Underwriting, acquisition and insurance expenses		249		254		1,021		1,004
Other operating expenses		5		6		16		20
Interest expense		14		13		54		55
Total benefits and expenses		762		778		3,271		3,321
INCOME BEFORE INCOME TAXES		174		355		501		582
PROVISION FOR INCOME TAXES
Current		10		73		94		79
Deferred		38		37		30		71
Total provision for income taxes		48		110		124		150
NET INCOME	$	126	$	245	$	377	$	432
PER COMMON SHARE
Net income—basic	$	0.78	$	1.50	$	2.32	$	2.66
Net income—diluted	$	0.77	$	1.50	$	2.31	$	2.65

9

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.

Cincinnati Financial Corporation

Balance Sheet Reconciliation

(Dollars are per share)	Three months ended December 31,						Twelve months ended December 31,
	2010			2009			2010			2009
Value creation ratio
End of period book value	$	30.91		$	29.25		$	30.91		$	29.25
Less beginning of period book value		30.80			28.44			29.25			25.75
Change in book value		0.11			0.81			1.66			3.50
Dividend declared to shareholders		0.40			0.395			1.59			1.57
Total contribution to value creation ratio	$	0.51		$	1.21		$	3.25		$	5.07
Contribution to value creation ratio from change in book value*		0.4	%		2.8	%		5.7	%		13.6	%
Contribution to value creation ratio from dividends declared to shareholders**		1.3			1.4			5.4			6.1
Value creation ratio		1.7	%		4.2	%		11.1	%		19.7	%

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

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

10

Cincinnati Financial Corporation

Net Income Reconciliation

(In millions except per share data)	Three months ended			Twelve months ended
	December31,2010			December31,2010
Net income	$	126		$	377
Net realized investment gains and losses		13			103
Operating income		113			274
Less catastrophe losses		(3	)		(96	)
Operating income before catastrophe losses	$	116		$	370
Diluted per share data:
Net income	$	0.77		$	2.31
Net realized investment gains and losses		0.07			0.63
Operating income		0.70			1.68
Less catastrophe losses		(0.02	)		(0.59	)
Operating income before catastrophe losses	$	0.72		$	2.27

Property Casualty Reconciliation

	Three months ended December 31, 2010
	Consolidated*			Commercial			Personal
Statutory ratio:
Statutory combined ratio		94.2	%		91.9	%		102.5	%
Contribution from catastrophe losses		0.7			1.0			(0.3	)
Statutory combined ratio excluding catastrophe losses		93.5	%		90.9	%		102.8	%
Commission expense ratio		19.9	%		19.0	%		21.7	%
Other expense ratio		13.4			14.4			10.9
Statutory expense ratio		33.3	%		33.4	%		32.6	%
GAAP ratio:
GAAP combined ratio		93.1	%		90.6	%		101.9	%
Contribution from catastrophe losses		0.7			1.0			(0.3	)
Prior accident years before catastrophe losses		(17.4	)		(21.0	)		(7.0	)
GAAP combined ratio excluding catastrophe losses and prior
years reserve development		109.8	%		110.6	%		109.2	%

	Twelve months ended December 31, 2010
	Consolidated*			Commercial			Personal
Statutory ratio:
Statutory combined ratio		101.8	%		99.6	%		107.1	%
Contribution from catastrophe losses		5.1			4.1			8.1
Statutory combined ratio excluding catastrophe losses		96.7	%		95.5	%		99.0	%
Commission expense ratio		18.7	%		18.1	%		19.6	%
Other expense ratio		14.2			14.8			13.1
Statutory expense ratio		32.9	%		32.9	%		32.7	%
GAAP ratio:
GAAP combined ratio		101.7	%		99.4	%		107.7	%
Contribution from catastrophe losses		5.1			4.1			8.1
Prior accident years before catastrophe losses		(9.8	)		(11.9	)		(4.1	)
GAAP combined ratio excluding catastrophe losses and prior
years reserve development		106.4	%		107.2	%		103.7	%

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

* Consolidated property casualty data include results from our excess and surplus line of business.

11

EX-99.2

Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending December 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 February 1, 2011, 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 in 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

Fourth Quarter 2010

		Page
	Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3
Consolidated
	Quick Reference	4
	CFC and Subsidiaries Consolidation – Twelve Months Ended December 31, 2010	5
	CFC and Subsidiaries Consolidation – Three Months Ended December 31, 2010	6
	10-Year Net Income Reconciliation	7
	CFC Insurance Subsidiaries – Selected Balance Sheet Data	8
Consolidated Property Casualty Insurance Operations
(Includes Cincinnati Specialty Underwriters Insurance Company (CSU))
	Statutory Statements of Income	9
	Cincinnati Insurance Companies – Losses Incurred Detail	10
	Cincinnati Insurance Companies – Loss Ratio Detail	11
	Cincinnati Insurance Companies – Loss Claim Count Detail	12
	Direct Written Premiums by Line of Business and State	13
	Quarterly Property Casualty Data – Commercial Lines of Business	14
	Quarterly Property Casualty Data – Personal Lines of Business	15
	Loss and Loss Expense Analysis	16
Reconciliation Data
	10-Year Property Casualty Data – Consolidated	17
	6-Year Property Casualty Data – Commercial Lines	18
	6-Year Property Casualty Data – Personal Lines	19
	Quarterly Property Casualty Data – Consolidated	20
	Quarterly Property Casualty Data – Commercial Lines	21
	Quarterly Property Casualty Data – Personal Lines	22
Life Insurance Operations
	Statutory Statements of Income	23

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.

3

Cincinnati Financial Corporation

Quick Reference - Fourth Quarter 2010

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

	12/31/2010		Year over year change %				12/31/2010			Year over year change %
Revenues:						Benefits and expenses:
Commercial lines net written premiums	$	524		4		Commercial lines loss and loss expenses	$	319			(10	)
Personal lines net written premiums		183		10		Personal lines loss and loss expenses		130			27
Excess & surplus lines net written premiums		15		36		Excess & surplus lines loss and loss expenses		6			20
Property casualty net written premiums		722		6		Life and accident and health losses and policy benefits		41			(2	)
Life and accident and health net written premiums		47		7		Underwriting, acquisition and insurance expenses		249			(2	)
Annuity net written premiums		48		(29	)	Other operating expenses		5			(17	)
Life, annuity and accident and health net written premiums		95		(15	)	Interest expenses		14			0
Commercial lines net earned premiums		546		3		Total benefits & expenses		762			(2	)
Personal lines net earned premiums		186		8		Income before income taxes		174			(51	)
Excess & surplus lines net earned premiums		13		44		Total income tax		48			(56	)
Property casualty net earned premiums		745		4
Fee revenue		1		0		Balance Sheet:
Life and accident and health net earned premiums		38		(3	)
Investment income		130		(1	)	Fixed maturity investments	$	8,383
Realized gains on investments		19		(92	)	Equity securities		3,041
Other revenue		3		50		Short-term investments		-
Total revenues		936		(17	)	Other invested assets		84
						Total invested assets	$	11,508
Income:						Equity in net assets of subsidiaries	$	4,695
						Loss and loss expense reserves	$	4,200
Operating income	$	113		31		Total debt		790
Net realized investment gains and losses		13		(92	)	Shareholders' equity		5,032
Net income		126		(49	)
						Key ratios:
Per share (diluted):
						Commercial lines GAAP combined ratio		90.6	%
Operating income	$	0.70		32		Personal lines GAAP combined ratio		101.9
Net realized investment gains and losses		0.07		(92	)	Property casualty GAAP combined ratio		93.1
Net income		0.77		(49	)
Book value		30.91		6		Commercial lines STAT combined ratio		91.9	%
Weighted average shares – diluted		163,392,133		0		Personal lines STAT combined ratio		102.5
						Property casualty STAT combined ratio		94.2
						Value creation ratio		1.7	%

4

Cincinnati Financial Corporation

Consolidated Statements of Income for the Twelve Months Ended December 31, 2010

(In millions)	CFC			CONSOL P&C			CLIC			CFC-I			CINFIN			ELIM			Total
Revenues:
Premiums earned:
Property casualty	$	-		$	3,090		$	-		$	-		$	-		$	-		$	3,090
Life		-			-			204			-			-			-			204
Accident health		-			-			7			-			-			-			7
Premiums ceded		-			(166	)		(53	)		-			-			-			(219	)
Total earned premium		-			2,924			158			-			-			-			3,082
Investment income		41			348			129			-			-			-			518
Realized gain on investments		17			140			3			(1	)		-			-			159
Fee revenue		-			4			-			-			-			-			4
Other revenue		15			1			1			7			-			(15	)		9
Total revenues	$	73		$	3,417		$	291		$	6		$	-		$	(15	)	$	3,772
Benefits & expenses:
Losses & policy benefits	$	-		$	2,020		$	233		$	-		$	-		$	(5	)	$	2,248
Reinsurance recoveries		-			(5	)		(63	)		-			-			-			(68	)
Underwriting, acquisition and insurance expenses		-			960			61			-			-			-			1,021
Other operating expenses		23			-			-			4			-			(11	)		16
Interest expense		53			-			-			1			-			-			54
Total expenses	$	76		$	2,975		$	231		$	5		$	-		$	(16	)	$	3,271
Income (loss) before income taxes	$	(3	)	$	442		$	60		$	1		$	-		$	1		$	501
Provision (benefit) for income taxes:
Current operating income	$	(15	)	$	55		$	(4	)	$	1		$	-		$	-		$	37
Capital gains/losses		6			50			1			-			-			-			57
Deferred		2			4			25			(1	)		-			-			30
Total provision (benefit) for income taxes	$	(7	)	$	109		$	22		$	-		$	-		$	-		$	124
Operating income (loss)	$	(7	)	$	243		$	36		$	2		$	-		$	1		$	275
Net income - current year	$	4		$	333		$	38		$	1		$	-		$	1		$	377
Net income (loss) - prior year	$	80		$	329		$	22		$	-		$	(1	)	$	2		$	432

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

5

Cincinnati Financial Corporation and Subsidiaries

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

(In millions)	CFC			CONSOL P&C			CLIC			CFC-I		CINFIN		ELIM			Total
Revenues:
Premiums earned:
Property casualty	$	-		$	787		$	-		$	-	$	-	$	-		$	787
Life		-			-			52			-		-		-			52
Accident health		-			-			2			-		-		-			2
Premiums ceded		-			(42	)		(16	)		-		-		-			(58	)
Total earned premium		-			745			38			-		-		-			783
Investment income		10			88			32			-		-		-			130
Realized gain (loss) on investments		3			12			4			-		-		-			19
Fee revenue		-			1			-			-		-		-			1
Other revenue		4			-			1			2		-		(4	)		3
Total revenues	$	17		$	846		$	75		$	2	$	-	$	(4	)	$	936
Benefits & expenses:
Losses & policy benefits	$	-		$	482		$	59		$	-	$	-	$	(1	)	$	540
Reinsurance recoveries		-			(28	)		(18	)		-		-		-			(46	)
Underwriting, acquisition and insurance expenses		-			239			10			-		-		-			249
Other operating expenses		6			-			-			1		-		(2	)		5
Interest expense		13			-			-			1		-		-			14
Total expenses	$	19		$	693		$	51		$	2	$	-	$	(3	)	$	762
Income (loss) before income taxes	$	(2	)	$	153		$	24		$	-	$	-	$	(1	)	$	174
Provision (benefit) for income taxes:
Current operating income	$	(15	)	$	19		$	-		$	-	$	-	$	-		$	4
Capital gains/losses		1			4			1			-		-		-			6
Deferred		12			19			7			-		-		-			38
Total provision (benefit) for income taxes	$	(2	)	$	42		$	8		$	-	$	-	$	-		$	48
Operating income (loss)	$	(2	)	$	103		$	13		$	-	$	-	$	(1	)	$	113
Net income - current year	$	-		$	111		$	16		$	-	$	-	$	(1	)	$	126
Net income - prior year	$	28		$	200		$	17		$	-	$	-	$	-		$	245

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

6

Cincinnati Financial Corporation

10-Year Net Income Reconciliation

	Years ended December 31,
(Dollars in millions except per share data)	2010			2009			2008			2007			2006			2005			2004			2003			2002			2001
Net income	$	377		$	432		$	429		$	855		$	930		$	602		$	584		$	374		$	238		$	193
One-time item		-			-			-			-			-			-			-			15			-			-
Net income before one-time item		377			432			429			855			930			602			584			359			238			193
Net realized investment gains and losses		103			217			85			245			434			40			60			(27	)		(62	)		(17	)
Operating income before one-time item		274			215			344			610			496			562			524			386			300			210
Less catastrophe losses		(96	)		(107	)		(132	)		(17	)		(113	)		(82	)		(96	)		(63	)		(57	)		(42	)
Operating income before catastrophe losses and one-time item	$	370		$	322		$	476		$	627		$	609		$	644		$	620		$	449		$	357		$	252
Diluted per share data
Net income	$	2.31		$	2.65		$	2.62		$	4.97		$	5.30		$	3.40		$	3.28		$	2.10		$	1.32		$	1.07
One-time item		-			-			-			-			-			-			-			0.09			-			-
Net income before one-time item		2.31			2.65			2.62			4.97			5.30			3.40			3.28			2.01			1.32			1.07
Net realized investment gains and losses		0.63			1.33			0.52			1.43			2.48			0.23			0.34			(0.15	)		(0.35	)		(0.10	)
Operating income before one-time item		1.68			1.32			2.10			3.54			2.82			3.17			2.94			2.16			1.67			1.17
Less catastrophe losses		(0.59	)		(0.66	)		(0.81	)		(0.10	)		(0.65	)		(0.46	)		(0.54	)		(0.35	)		(0.31	)		(0.23	)
Operating income before catastrophe losses and one-time item	$	2.27		$	1.98		$	2.91		$	3.64		$	3.47		$	3.63		$	3.48		$	2.51		$	1.98		$	1.40
Return on equity
Return on average equity		7.7	%		9.7	%		8.5	%		13.4	%		14.4	%		9.8	%		9.4	%		6.3	%		4.1	%		3.2	%
One-time item		-			-			-			-			-			-			-			(0.3	)		-			-
Return on average equity before one-time item		7.7	%		9.7	%		8.5	%		13.4	%		14.4	%		9.8	%		9.4	%		6.0	%		4.1	%		3.2	%
Value creation ratio
Book value per share growth		5.7	%		13.6	%		(27.9	)%		(9.3	)%		12.9	%		(2.0	)%		1.4	%		11.7	%		(6.5	)%		(0.5	)%
Shareholder dividend declared as a percentage of beginning book value		5.4			6.1			4.4			3.6			3.8			3.4			3.0			2.9			2.4			2.2
Value creation ratio		11.1	%		19.7	%		(23.5	)%		(5.7	)%		16.7	%		1.4	%		4.4	%		14.5	%		(4.1	)%		1.7	%
Investment income
Investment income, net of expenses	$	518		$	501		$	537		$	608		$	570		$	526		$	492		$	465		$	445		$	421

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

7

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
Fixed maturities (fair value)	$	5,818		$	5,924		$	5,804		$	5,759	$	5,663	$	5,521	$	5,169		$	4,804
Equities (fair value)		2,175			1,927			1,862			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)		314			494			363			287		242		301		25			(36	)
Equities - pretax net unrealized gain		608			476			457			635		592		594		487			347
Loss and loss expense reserves - STAT		3,756			3,799			3,781			3,689		3,639		3,656		3,674			3,555
Equity GAAP		4,656			4,652			4,429			4,506		4,405		4,283		3,795			3,512
Surplus - STAT		3,777			3,641			3,537			3,692		3,648		3,472		3,241			3,105
The Cincinnati Life Insurance Company
Fixed maturities (fair value)	$	2,315		$	2,267		$	2,259		$	2,055	$	1,927	$	1,868	$	1,694		$	1,534
Equities (fair value)		103			108			100			114		108		123		103			89
Short-term investments (fair value)		-			-			-			-		-		1		1			-
Fixed maturities - pretax net unrealized gain (loss)		148			215			154			110		72		67		(43	)		(94	)
Equities - pretax net unrealized gain (loss)		(4	)		1			(7	)		7		1		11		(8	)		(27	)
Equity - GAAP		748			775			729			700		666		653		563			454
Surplus - STAT		303			316			307			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
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	)		-		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

8

Consolidated Cincinnati Insurance Companies

Statutory Statements of Income

	For the Three Months Ended December 31,												For the Twelve Months Ended December 31,
(Dollars in millions)	2010			2009			Change			% Change			2010			2009			Change			% Change
Underwriting income
Net premiums written	$	721		$	680		$	41			6		$	2,963		$	2,911		$	52			2
Unearned premiums increase		(24	)		(33	)		9			27			39			-			39		nm
Earned premiums	$	745		$	713		$	32			4		$	2,924		$	2,911		$	13		nm
Losses incurred	$	356		$	356		$	-		nm			$	1,652		$	1,706		$	(54	)		(3	)
Allocated loss expenses incurred		50			53			(3	)		(6	)		178			183			(5	)		(3	)
Unallocated loss expenses incurred		48			55			(7	)		(13	)		185			197			(12	)		(6	)
Other underwriting expenses incurred		236			227			9			4			960			936			24			3
Workers compensation dividend incurred		4			4			-		nm				14			17			(3	)		(18	)
Total underwriting deductions	$	694		$	695		$	(1	)	nm			$	2,989		$	3,039		$	(50	)		(2	)
Net underwriting gains (losses)	$	51		$	18		$	33			183		$	(65	)	$	(128	)	$	63			49
Investment income
Gross investment income earned	$	91		$	91		$	-		nm			$	360		$	346		$	14			4
Net investment income earned		90			90			-		nm				355			341			14			4
Net realized capital gains		6			127			(121	)		(95	)		90			143			(53	)		(37	)
Net investment gains (excl. subs)	$	96		$	217		$	(121	)		(56	)	$	445		$	484		$	(39	)		(8	)
Dividend from subsidiary		-			-			-		nm				-			-			-		nm
Net investment gains (net of tax)	$	96		$	217		$	(121	)		(56	)	$	445		$	484		$	(39	)		(8	)
Other income	$	1		$	(9	)	$	10		nm			$	4		$	(5	)	$	9		nm
Net income before federal income taxes	$	148		$	226		$	(78	)		(35	)	$	384		$	351		$	33			9
Federal and foreign income taxes incurred	$	19		$	7		$	12			171		$	53		$	1		$	52		nm
Net income (statutory)	$	129		$	219		$	(90	)		(41	)	$	331		$	350		$	(19	)		(5	)

* Dollaramounts 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 withthe appropriate regulatory bodies.

* ExcludesCSU Producers Resources Inc.

9

Consolidated Cincinnati Insurance Companies

Losses Incurred Detail

	Three months ended																				Six months ended					Nine months ended					Twelve months ended
(In millions)	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	$	15		$	17	$	11	$	6	$	9		$	18		$	21	$	9		$	17	$	30		$	34	$	48		$	49	$	57
New losses $1,000,000-$4,000,000		43			36		30		35		37			43			39		28			64		67			100		110			142		147
New losses $250,000-$1,000,000		47			46		52		52		48			56			47		62			104		109			150		164			200		212
Case reserve development above $250,000		45			66		30		37		89			51			70		56			68		125			134		177			178		265
Large losses subtotal	$	150		$	165	$	123	$	130	$	183		$	168		$	177	$	155		$	253	$	331		$	418	$	499		$	569	$	681
IBNR incurred		18			16		11		12		19			12			39		18			23		58			41		69			59		89
Catastrophe losses incurred		5			28		99		15		(12	)		6			118		53			114		171			143		177			148		165
Remaining incurred		184			228		241		228		166			182			191		232			468		422			694		605			876		771
Total losses incurred	$	357		$	437	$	474	$	385	$	356		$	368		$	525	$	458		$	858	$	982		$	1,296	$	1,350		$	1,652	$	1,706
Commercial Lines Loss Detail
New losses greater than $4,000,000	$	10		$	17	$	11	$	6	$	9		$	13		$	21	$	9		$	17	$	30		$	34	$	43		$	44	$	52
New losses $1,000,000-$4,000,000		38			28		22		32		34			33			36		26			54		62			82		96			120		130
New losses $250,000-$1,000,000		31			37		40		40		35			44			39		47			80		86			117		129			148		164
Case reserve development above $250,000		41			62		29		32		83			49			63		51			61		114			123		163			164		245
Large losses subtotal	$	120		$	144	$	102	$	110	$	161		$	139		$	159	$	133		$	212	$	292		$	356	$	431		$	476	$	591
IBNR incurred		19			10		7		9		28			11			37		18			17		56			27		67			45		95
Catastrophe losses incurred		5			17		57		10		(10	)		(7	)		57		14			66		71			84		64			89		54
Remaining incurred		97			141		152		152		88			113			113		156			304		268			444		382			542		470
Total losses incurred	$	241		$	312	$	318	$	281	$	267		$	256		$	366	$	321		$	599	$	687		$	911	$	944		$	1,152	$	1,210
Personal Lines Loss Detail
New losses greater than $4,000,000	$	5		$	-	$	-	$	-	$	-		$	5		$	-	$	-		$	-	$	-		$	-	$	5		$	5	$	5
New losses $1,000,000-$4,000,000		5			5		7		3		3			10			3		2			10		5			15		14			20		17
New losses $250,000-$1,000,000		14			7		10		10		13			12			8		15			20		23			27		35			41		48
Case reserve development above $250,000		3			4		1		3		5			2			7		5			4		11			8		14			11		19
Large losses subtotal	$	27		$	16	$	18	$	16	$	21		$	29		$	18	$	22		$	34	$	39		$	50	$	68		$	77	$	89
IBNR incurred		1			4		2		1		(10	)		-			-		(1	)		2		(1	)		7		(1	)		8		(11	)
Catastrophe losses incurred		(1	)		11		43		5		(2	)		13			61		39			48		100			59		113			58		111
Remaining incurred		86			84		83		75		76			65			76		75			159		151			243		216			328		292
Total losses incurred	$	113		$	115	$	146	$	97	$	85		$	107		$	155	$	135		$	243	$	289		$	359	$	396		$	471	$	481
Excess & Surplus Lines Loss Detail
New losses greater than $4,000,000	$	-		$	-	$	-	$	-	$	-		$	-		$	-	$	-		$	-	$	-		$	-	$	-		$	-	$	-
New losses $1,000,000-$4,000,000		-			3		-		-		-			-			-		-			-		-			3		-			3		-
New losses $250,000-$1,000,000		2			2		3		2		-			-			-		-			5		-			6		-			9		-
Case reserve development above $250,000		1			-		-		2		1			-			-		-			2		-			3		-			3		1
Large losses subtotal	$	3		$	5	$	3	$	4	$	1		$	-		$	-	$	-		$	7	$	-		$	12	$	-		$	15	$	1
IBNR incurred		(2	)		2		2		2		1			1			2		1			5		3			7		3			4		5
Catastrophe losses incurred		1			-		-		-		-			-			-		-			-		-			-		-			1		-
Remaining incurred		1			3		4		1		2			4			2		1			4		3			7		7			9		9
Total losses incurred	$	3		$	10	$	9	$	7	$	4		$	5		$	4	$	2		$	16	$	6		$	26	$	10		$	29	$	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.

10

Cincinnati Insurance Companies

Loss Ratio Detail

	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		2.0	%		2.3	%		1.5	%		0.8	%		1.3	%		2.5	%		2.8	%		1.3	%		1.2	%		2.0	%		1.6	%		2.2	%		1.7	%		2.0	%
New losses $1,000,000-$4,000,000		5.7			4.8			4.0			4.9			5.2			5.9			5.3			3.8			4.6			4.5			4.6			5.0			4.9			5.1
New losses $250,000-$1,000,000		6.7			6.2			7.2			7.4			6.7			7.5			6.4			8.4			7.2			7.5			6.9			7.4			6.8			7.3
Case reserve development above $250,000		5.9			8.9			4.2			5.3			12.4			7.0			9.6			7.6			4.7			8.5			6.2			8.0			6.1			9.0
Large losses subtotal		20.3	%		22.2	%		16.9	%		18.4	%		25.6	%		22.9	%		24.1	%		21.1	%		17.7	%		22.5	%		19.3	%		22.6	%		19.5	%		23.4	%
IBNR incurred		2.5			2.3			1.6			1.7			2.7			1.7			5.3			2.5			1.6			3.9			1.8			3.2			2.0			3.0
Total catastrophe losses incurred		0.7			3.8			13.6			2.1			(1.7	)		0.9			16.1			7.2			7.9			11.6			6.5			8.1			5.1			5.7
Remaining incurred		24.4			30.5			33.0			32.1			23.3			24.7			26.1			31.7			32.6			29.0			31.9			27.5			30.0			26.5
Total loss ratio		47.9	%		58.8	%		65.1	%		54.3	%		49.9	%		50.2	%		71.6	%		62.5	%		59.8	%		67.0	%		59.5	%		61.4	%		56.6	%		58.6	%
Commercial Lines Loss Ratio
New losses greater than $4,000,000		1.8	%		3.1	%		2.0	%		1.1	%		1.7	%		2.4	%		3.7	%		1.7	%		1.6	%		2.7	%		2.1	%		2.6	%		2.0	%		2.4	%
New losses $1,000,000-$4,000,000		7.0			5.1			4.1			6.1			6.4			6.1			6.5			4.7			5.1			5.6			5.1			5.8			5.6			5.9
New losses $250,000-$1,000,000		5.8			6.7			7.4			7.7			6.5			7.8			7.0			8.4			7.5			7.7			7.3			7.8			6.9			7.5
Case reserve development above $250,000		7.4			11.4			5.4			6.2			15.5			8.8			11.4			9.1			5.8			10.3			7.7			9.8			7.6			11.1
Large losses subtotal		22.0	%		26.3	%		18.9	%		21.1	%		30.1	%		25.1	%		28.6	%		23.9	%		20.0	%		26.3	%		22.2	%		26.0	%		22.1	%		26.9	%
IBNR incurred		3.3			1.9			1.3			1.8			5.3			2.0			6.7			3.3			1.6			5.0			1.7			4.0			2.1			4.3
Total catastrophe losses incurred		1.0			3.2			10.5			1.8			(1.8	)		(1.2	)		10.3			2.5			6.2			6.4			5.2			3.8			4.1			2.5
Remaining incurred		17.8			25.7			28.3			29.0			16.6			20.3			20.4			27.9			28.6			24.1			27.6			22.9			25.2			21.4
Total loss ratio		44.1	%		57.1	%		59.0	%		53.7	%		50.2	%		46.2	%		66.0	%		57.6	%		56.4	%		61.8	%		56.7	%		56.7	%		53.5	%		55.1	%
Personal Lines Loss Ratio
New losses greater than $4,000,000		2.7	%		0.0	%		0.0	%		0.0	%		0.0	%		2.9	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		1.0	%		0.7	%		0.7	%
New losses $1,000,000-$4,000,000		2.3			2.8			4.4			1.5			1.6			5.7			1.9			0.8			3.0			1.4			2.9			2.8			2.8			2.5
New losses $250,000-$1,000,000		7.8			4.0			5.6			5.5			7.5			7.0			4.8			8.6			5.6			6.7			5.0			6.7			5.7			6.9
Case reserve development above $250,000		1.8			2.0			0.6			1.9			3.2			1.3			3.7			3.0			1.2			3.3			1.5			2.7			1.6			2.9
Large losses subtotal		14.6	%		8.8	%		10.6	%		8.9	%		12.3	%		16.9	%		10.4	%		12.4	%		9.8	%		11.4	%		9.4	%		13.2	%		10.8	%		13.0	%
IBNR incurred		0.8			2.4			0.9			0.3			(5.7	)		(0.2	)		0.1			(0.6	)		0.6			(0.3	)		1.2			(0.3	)		1.1			(1.6	)
Total catastrophe losses incurred		(0.3	)		6.0			23.8			3.0			(1.4	)		7.9			35.4			22.6			13.5			29.0			11.0			22.0			8.1			16.1
Remaining incurred		45.3			46.0			47.1			43.1			44.2			38.5			44.2			43.9			45.1			44.1			45.4			42.2			45.4			42.7
Total loss ratio		60.4	%		63.2	%		82.4	%		55.3	%		49.4	%		63.1	%		90.1	%		78.3	%		69.0	%		84.2	%		67.0	%		77.1	%		65.4	%		70.2	%
Excess & Surplus Lines 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	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
New losses $1,000,000-$4,000,000		0.0			19.4			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			7.1			0.0			5.1			0.0
New losses $250,000-$1,000,000		17.5			16.7			22.8			16.9			4.4			0.0			0.0			0.0			19.9			0.0			18.7			0.0			18.4			1.5
Case reserve development above $250,000		1.8			2.5			2.7			20.7			5.5			0.0			0.0			0.0			11.6			0.0			13.1			0.0			14.2			1.9
Large losses subtotal		19.3	%		38.6	%		25.5	%		37.6	%		9.9	%		0.0	%		0.0	%		0.0	%		31.5	%		0.0	%		38.9	%		0.0	%		37.7	%		3.4	%
IBNR incurred		(13.2	)		14.9			23.5			18.4			11.4			5.6			26.7			22.4			23.7			24.9			18.5			16.5			9.6			14.8
Total catastrophe losses incurred		(0.1	)		4.6			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			1.7			0.0			1.2			0.0
Remaining incurred		14.7			14.2			32.5			9.4			21.1			46.7			32.8			29.1			18.3			31.3			18.8			38.0			17.4			32.3
Total loss ratio		20.7	%		72.3	%		81.5	%		65.4	%		42.4	%		52.3	%		59.5	%		51.5	%		73.5	%		56.2	%		77.9	%		54.5	%		65.9	%		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.

11

Cincinnati Insurance Companies

Loss Claim Count Detail

	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		3		3		2		1		2		4		4		2		3		6		6		10		9		12
New losses $1,000,000-$4,000,000		23		20		18		19		19		26		22		16		37		38		57		64		80		83
New losses $250,000-$1,000,000		123		112		117		123		107		130		114		149		240		263		352		393		475		500
Case reserve development above $250,000		80		101		73		77		122		81		108		89		150		197		251		278		331		400
Large losses total		229		236		210		220		250		241		248		256		430		504		666		745		895		995
Commercial Lines Loss Claim Count
New losses greater than $4,000,000		2		3		2		1		2		3		4		2		3		6		6		9		8		11
New losses $1,000,000-$4,000,000		20		15		12		17		17		20		19		15		29		34		44		54		64		71
New losses $250,000-$1,000,000		79		88		88		95		77		101		92		112		183		204		271		305		350		382
Case reserve development above $250,000		70		93		70		67		108		74		93		77		137		170		230		244		300		352
Large losses total		171		199		172		180		204		198		208		206		352		414		551		612		722		816
Personal Lines Loss Claim Count
New losses greater than $4,000,000		1		-		-		-		-		1		-		-		-		-		-		1		1		1
New losses $1,000,000-$4,000,000		3		3		6		2		2		6		3		1		8		4		11		10		14		12
New losses $250,000-$1,000,000		38		19		24		24		29		29		22		37		48		59		67		88		105		117
Case reserve development above $250,000		9		7		2		5		13		7		15		12		7		27		14		34		23		47
Large losses total		51		29		32		31		44		43		40		50		63		90		92		133		143		177
Excess & Surplus Lines Loss Claim Count
New losses greater than $4,000,000		-		-		-		-		-		-		-		-		-		-		-		-		-		-
New losses $1,000,000-$4,000,000		-		2		-		-		-		-		-		-		-		-		2		-		2		-
New losses $250,000-$1,000,000		6		5		5		4		1		-		-		-		9		-		14		-		20		1
Case reserve development above $250,000		1		1		1		5		1		-		-		-		6		-		7		-		8		1
Large losses total		7		8		6		9		2		-		-		-		15		-		23		-		30		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.

12

Consolidated Cincinnati Insurance Companies

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

(Dollars in millions)	Commercial Lines														PersonalLines								Consolidated				Comm'l			Personal			E & S		Consol
Risk State	Comm Casualty		Comm Property		Comm Auto		Workers' Comp		Spec Packages		Surety & Exec Risk		Mach. & Equipment		Personal Auto		Home Owner		Other Personal		E & S Lines		2010 Total		2009 Total		Change %			Change %			Change %		Change %
AL	$	15.9	$	18.0	$	7.4	$	1.1	$	8.5	$	2.2	$	1.0	$	16.3	$	25.4	$	5.7	$	2.1	$	103.7	$	104.0		(3.2	)		0.8			120.6		(0.2	)
AZ		9.4		6.0		8.8		1.3		0.9		1.0		0.6		1.2		1.1		0.4		0.8		31.5		31.7		(6.1	)		61.0			165.0		(0.8	)
AR		8.3		11.0		5.6		3.3		4.7		1.5		0.6		3.2		3.6		1.1		1.2		44.1		42.5		0.1			17.5			53.5		3.8
CO		3.3		4.0		2.3		0.3		0.1		0.7		0.3		-		0.2		-		0.5		11.6		2.4		400.8			23.8		nm			375.7
CT		0.1		0.1		0.1		0.1		-		-		-		-		-		-		-		0.5		0.5		3.3			17.2		nm			6.2
DE		2.5		2.0		1.6		3.1		0.3		0.2		0.2		-		-		-		-		9.8		7.8		25.3			6.1		nm			25.3
FL		20.8		20.8		8.5		1.1		1.9		2.4		0.9		9.4		13.1		2.6		1.9		83.5		90.2		(6.7	)		(15.0	)	nm			(7.5	)
GA		24.0		22.4		17.1		11.9		7.7		5.8		1.3		32.1		29.3		8.7		4.5		164.6		159.1		1.1			4.9			44.5		3.5
ID		7.4		4.9		4.9		0.1		0.8		0.9		0.3		1.2		0.7		0.2		0.4		21.8		22.5		(10.4	)		221.7			110.5		(2.8	)
IL		56.2		43.3		27.3		51.2		12.3		6.9		3.1		27.2		21.1		7.0		4.7		260.4		262.2		(3.7	)		9.9			21.1		(0.7	)
IN		40.2		34.7		20.9		23.8		8.2		6.8		2.4		29.0		27.4		7.4		6.7		207.5		208.7		(5.1	)		7.4			34.5		(0.6	)
IA		18.4		14.6		9.0		21.2		4.3		3.0		1.3		3.7		4.0		1.8		0.9		82.2		84.1		(4.2	)		9.7			113.5		(2.2	)
KS		7.4		8.5		4.6		7.8		3.4		1.6		0.5		4.5		5.6		1.3		0.5		45.9		45.0		0.1			6.8			21.3		1.9
KY		20.5		21.8		13.7		3.1		6.0		3.7		1.1		23.2		17.8		4.9		2.3		118.2		112.2		0.7			11.3			54.6		5.3
MD		12.2		6.9		10.9		9.3		1.3		2.0		0.5		0.7		2.0		0.6		1.3		47.5		46.9		(1.1	)		25.2			61.6		1.4
MI		30.5		22.1		13.6		14.8		10.7		6.2		2.0		13.2		14.7		3.5		2.7		134.0		132.2		(1.6	)		10.3			26.8		1.4
MN		17.9		16.1		7.8		6.9		3.5		2.4		1.3		7.3		6.6		3.3		1.8		75.0		74.4		(3.4	)		14.7			25.6		0.8
MO		20.3		20.4		12.9		12.8		6.2		2.6		1.4		4.0		5.5		1.3		3.2		90.7		89.4		(2.6	)		24.1			57.3		1.4
MT		10.5		6.8		5.8		0.1		1.2		0.7		0.5		1.6		1.4		0.3		0.3		29.1		30.9		(9.6	)		39.3			7.2		(5.7	)
NE		6.2		6.0		3.4		6.6		1.4		1.0		0.5		0.7		0.9		0.3		0.5		27.5		27.1		1.1			(4.2	)		93.9		1.6
NH		2.9		1.9		1.2		2.4		0.9		0.6		0.2		0.8		0.8		0.4		0.4		12.4		11.7		1.7			18.8			72.3		5.7
NM		2.6		1.1		1.6		0.7		0.2		0.7		0.1		-		-		-		0.5		7.4		6.8		5.7			56.4			141.2		9.6
NY		28.4		10.1		10.8		2.3		1.5		3.1		0.8		-		0.1		-		0.8		57.9		59.6		(3.3	)		10.9			68.6		(2.8	)
NC		30.9		28.3		18.8		19.5		13.6		8.1		2.0		12.1		9.0		4.3		2.3		149.0		143.4		(4.4	)		74.1			21.7		3.9
ND		5.1		3.8		2.5		-		1.0		0.7		0.3		0.5		0.5		0.2		0.2		14.8		14.4		1.3			9.7			78.8		2.6
OH		129.6		91.2		61.0		-		21.0		23.4		5.3		121.1		89.3		32.4		7.2		581.2		580.6		(2.3	)		2.8			34.0		0.1
OR		0.1		0.1		0.1		0.1		-		0.1		-		-		-		-		0.1		0.6		0.4		1.6		nm			nm			18.9
PA		42.3		30.0		28.1		45.4		10.2		6.2		2.1		7.5		6.3		3.5		2.7		184.4		181.5		0.5			5.0			92.8		1.6
SC		10.8		8.6		7.1		3.6		2.6		2.2		0.4		1.6		1.3		0.5		0.9		39.8		38.1		(2.5	)		177.3			54.8		4.2
SD		2.1		1.8		1.3		2.2		0.5		0.8		0.1		-		-		-		0.2		9.1		12.2		(26.6	)		(35.8	)		194.7		(25.1	)
TN		21.2		19.6		13.7		9.2		10.0		5.1		1.3		9.8		10.4		3.7		1.5		105.6		100.0		2.7			14.9			39.0		5.6
TX		12.8		11.8		7.7		1.9		0.5		1.0		0.9		-		-		-		3.7		40.4		17.7		118.6			(46.1	)		343.4		129.0
UT		10.0		4.9		5.9		0.1		0.8		2.1		0.4		3.5		1.4		0.3		1.2		30.4		30.0		(10.0	)		146.4			10.3		1.5
VT		4.5		3.7		2.8		7.0		0.9		1.1		0.3		0.9		1.0		0.3		0.5		23.0		21.8		3.6			22.9			40.1		5.8
VA		28.6		23.2		17.9		17.7		5.0		6.5		1.4		9.7		8.1		3.0		2.1		123.2		120.3		1.3			5.0			51.6		2.5
WA		2.8		1.6		1.9		-		-		0.5		0.1		-		-		-		0.6		7.6		5.1		49.0			231.2			47.0		48.9
WV		6.3		4.7		4.3		1.3		2.1		0.9		0.3		-		0.6		0.2		1.4		22.1		23.8		(9.6	)		(10.4	)		43.4		(7.5	)
WI		23.3		15.9		10.7		24.5		4.1		2.7		1.7		8.7		7.5		3.5		1.9		104.4		106.4		(3.8	)		4.8			24.3		(1.9	)
WY		0.8		0.5		0.2		-		-		0.1		-		-		-		-		0.1		1.7		1.4		14.3			7.9		nm			20.7
All Other		2.6		2.1		2.2		3.2		0.3		1.3		0.1		-		0.1		-		-		12.0		12.7		(6.4	)		(0.3	)	nm			(6.1	)
Total	$	699.6	$	555.6	$	386.2	$	320.8	$	158.6	$	118.9	$	37.4	$	355.0	$	316.8	$	102.8	$	64.6	$	3,116.4	$	3,061.7		(1.1	)		7.9			55.1		1.8
Other Direct		-		0.9		-		3.3		-		-		-		-		0.2		-		-		4.4		7.2		(14.0	)		(89.1	)	nm			(38.3	)
Total Direct	$	699.6	$	556.5	$	386.2	$	324.1	$	158.6	$	118.9	$	37.4	$	355.0	$	317.0	$	102.8	$	64.6	$	3,120.8	$	3,068.9		(1.1	)		7.6			55.1		1.7

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

13

Quarterly Property Casualty Data - Commercial Lines

	Three months ended																								Six months ended						Nine months ended						Twelve months ended
(Dollars in millions)	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	$	166		$	161		$	168		$	191		$	156		$	168		$	171		$	209		$	359		$	379		$	520		$	548		$	686		$	704
Earned premiums		175			182			172			164			166			180			180			187			336			366			518			546			693			712
Loss and loss expenses ratio		49.6	%		56.5	%		48.3	%		58.3	%		64.7	%		45.0	%		54.2	%		55.2	%		53.2	%		54.7	%		54.4	%		51.5	%		53.2	%		54.6	%
Less catastrophe loss ratio		-			-			-			-			-			-			-			-			-			-			-			-			-			-
Loss and loss expenses excluding catastrophe loss ratio		49.6	%		56.5	%		48.3	%		58.3	%		64.7	%		45.0	%		54.2	%		55.2	%		53.2	%		54.7	%		54.4	%		51.5	%		53.2	%		54.6	%
Commercial property:
Written premiums	$	122		$	122		$	124		$	129		$	115		$	124		$	113		$	132		$	253		$	245		$	375		$	370		$	497		$	485
Earned premiums		124			123			121			121			122			122			120			121			242			241			365			362			489			485
Loss and loss expenses ratio		55.7	%		70.8	%		90.1	%		71.0	%		34.9	%		42.8	%		88.3	%		69.0	%		80.5	%		78.6	%		77.3	%		66.6	%		71.8	%		58.6	%
Less catastrophe loss ratio		2.3			9.0			36.7			8.3			(5.1	)		0.6			23.5			7.4			22.5			15.4			18.0			10.4			14.0			6.6
Loss and loss expenses excluding catastrophe loss ratio		53.4	%		61.8	%		53.4	%		62.7	%		40.0	%		42.2	%		64.8	%		61.6	%		58.0	%		63.2	%		59.3	%		56.2	%		57.8	%		52.1	%
Commercial auto:
Written premiums	$	92		$	91		$	99		$	103		$	93		$	92		$	94		$	110		$	202		$	204		$	293		$	296		$	385		$	388
Earned premiums		97			96			96			95			98			99			98			99			191			197			287			296			384			394
Loss and loss expenses ratio		55.1	%		61.3	%		72.9	%		61.0	%		69.3	%		67.9	%		62.5	%		59.7	%		67.0	%		61.1	%		65.1	%		63.4	%		62.6	%		64.9	%
Less catastrophe loss ratio		0.4			(0.5	)		4.2			(1.0	)		0.4			(0.8	)		3.3			(0.1	)		1.6			1.6			0.9			0.8			0.8			0.7
Loss and loss expenses excluding catastrophe loss ratio		54.7	%		61.8	%		68.7	%		62.0	%		68.9	%		68.7	%		59.2	%		59.8	%		65.4	%		59.5	%		64.2	%		62.6	%		61.8	%		64.2	%
Workers' compensation:
Written premiums	$	75		$	68		$	72		$	95		$	71		$	69		$	79		$	104		$	167		$	183		$	235		$	252		$	310		$	323
Earned premiums		81			77			79			74			74			82			88			83			153			171			230			253			311			326
Loss and loss expenses ratio		82.8	%		112.2	%		89.9	%		91.4	%		137.1	%		110.2	%		130.2	%		117.5	%		90.6	%		124.0	%		97.8	%		119.5	%		93.9	%		123.5	%
Less catastrophe loss ratio		-			-			-			-			-			-			-			-			-			-			-			-			-			-
Loss and loss expenses excluding catastrophe loss ratio		82.8	%		112.2	%		89.9	%		91.4	%		137.1	%		110.2	%		130.2	%		117.5	%		90.6	%		124.0	%		97.8	%		119.5	%		93.9	%		123.5	%
Specialty package:
Written premiums	$	37		$	37		$	36		$	39		$	37		$	38		$	35		$	38		$	75		$	73		$	112		$	110		$	149		$	148
Earned premiums		37			38			37			37			37			37			37			35			74			72			112			110			149			147
Loss and loss expenses ratio		34.9	%		89.1	%		85.6	%		89.0	%		40.5	%		33.5	%		114.3	%		96.0	%		87.3	%		105.4	%		87.9	%		81.0	%		74.8	%		70.6	%
Less catastrophe loss ratio		6.9			18.7			20.2			1.1			(10.2	)		(18.2	)		68.8			13.7			10.8			41.9			13.4			21.5			11.9			13.4
Loss and loss expenses excluding catastrophe loss ratio		28.0	%		70.4	%		65.4	%		87.9	%		50.7	%		51.7	%		45.5	%		82.3	%		76.5	%		63.5	%		74.5	%		59.5	%		62.9	%		57.2	%
Surety and executive risk:
Written premiums	$	23		$	23		$	24		$	23		$	23		$	28		$	25		$	25		$	47		$	50		$	70		$	78		$	93		$	101
Earned premiums		24			22			25			24			27			27			25			25			49			50			71			77			95			104
Loss and loss expenses ratio		119.5	%		73.9	%		36.2	%		51.1	%		95.7	%		85.6	%		67.0	%		30.3	%		43.6	%		48.8	%		53.2	%		61.7	%		69.9	%		70.5	%
Less catastrophe loss ratio		-			-			-			-			-			-			-			-			-			-			-			-			-			-
Loss and loss expenses excluding catastrophe loss ratio		119.5	%		73.9	%		36.2	%		51.1	%		95.7	%		85.6	%		67.0	%		30.3	%		43.6	%		48.8	%		53.2	%		61.7	%		69.9	%		70.5	%
Machinery and equipment:
Written premiums	$	9		$	9		$	9		$	8		$	8		$	9		$	7		$	8		$	17		$	15		$	26		$	24		$	35		$	32
Earned premiums		8			9			8			8			8			8			8			7			16			15			25			23			33			31
Loss and loss expense ratio		17.7	%		11.9	%		51.9	%		6.1	%		(47.6	) %		38.4	%		39.7	%		59.3	%		29.3	%		49.3	%		23.4	%		45.6	%		21.9	%		21.6	%
Less catastrophe loss ratio		(0.3	)		(1.7	)		1.8			(1.0	)		(3.5	)		(0.1	)		1.2			4.5			0.4			2.8			(0.3	)		1.8			(0.3	)		0.5
Loss and loss expense excluding catastrophe loss ratio		18.0	%		13.6	%		50.1	%		7.1	%		(44.1	) %		38.5	%		38.5	%		54.8	%		28.9	%		46.5	%		23.7	%		43.8	%		22.2	%		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.

14

Quarterly Property Casualty Data - Personal Lines

	Three months ended																								Six months ended						Nine months ended						Twelve months ended
(Dollars in millions)	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	$	84		$	98		$	97		$	73		$	77		$	90		$	89		$	68		$	170		$	157		$	268		$	246		$	352		$	324
Earned premiums		87			86			83			81			80			80			80			79			164			159			250			239			337			319
Loss and loss expenses ratio		78.6	%		68.1	%		73.6	%		58.2	%		71.8	%		64.9	%		75.7	%		63.6	%		66.0	%		69.7	%		66.7	%		68.1	%		69.8	%		69.0	%
Less catastrophe loss ratio		(0.1	)		0.1			4.0			(0.1	)		(0.8	)		0.6			3.1			0.3			2.0			1.7			1.3			1.4			1.0			0.8
Loss and loss expenses excluding catastrophe loss ratio		78.7	%		68.0	%		69.6	%		58.3	%		72.6	%		64.3	%		72.6	%		63.3	%		64.0	%		68.0	%		65.4	%		66.7	%		68.8	%		68.2	%
Homeowner:
Written premiums	$	75		$	83		$	81		$	60		$	68		$	75		$	76		$	56		$	141		$	132		$	224		$	208		$	299		$	275
Earned premiums		75			72			72			70			69			68			70			70			142			140			214			207			289			276
Loss and loss expenses ratio		72.1	%		84.5	%		123.8	%		76.0	%		53.0	%		96.4	%		147.8	%		132.9	%		100.2	%		140.3	%		94.9	%		126.0	%		89.0	%		107.8	%
Less catastrophe loss ratio		(0.9	)		13.4			52.8			6.9			(2.6	)		18.0			77.6			51.5			30.1			64.5			24.5			49.4			17.9			36.4
Loss and loss expenses excluding catastrophe loss ratio		73.0	%		71.1	%		71.0	%		69.1	%		55.6	%		78.4	%		70.2	%		81.4	%		70.1	%		75.8	%		70.4	%		76.6	%		71.1	%		71.4	%
Other personal:
Written premiums	$	24		$	27		$	26		$	22		$	22		$	25		$	25		$	21		$	48		$	45		$	75		$	70		$	99		$	92
Earned premiums		24			24			24			23			23			22			22			22			47			44			71			67			95			90
Loss and loss expenses ratio		32.1	%		50.3	%		53.0	%		51.5	%		33.8	%		33.8	%		42.6	%		37.8	%		52.3	%		40.2	%		51.6	%		38.0	%		46.6	%		36.9	%
Less catastrophe loss ratio		0.9			4.3			5.3			2.8			0.5			3.4			18.7			11.0			4.1			14.8			4.2			11.0			3.3			8.3
Loss and loss expenses excluding catastrophe loss ratio		31.2	%		46.0	%		47.7	%		48.7	%		33.3	%		30.4	%		23.9	%		26.8	%		48.2	%		25.4	%		47.4	%		27.0	%		43.3	%		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.

15

Cincinnati Insurance Companies Consolidated

Loss and Loss Expense Analysis

			Paid										Loss											Loss
	Paid		loss		Total		Case			IBNR			expense			Total			Case		IBNR			expense			Total
(In millions)	losses		expense		paid		reserves			reserves			reserves			reserves			incurred		incurred			incurred			incurred
Gross loss and loss expense incurred at December 31, 2010
Commercial casualty	$	295	$	117	$	412	$	(78	)	$	13		$	(8	)	$	(73	)	$	217	$	13		$	109		$	339
Commercial property		274		44		319		45			(3	)		2			44			319		(3	)		46			362
Commercial auto		221		38		259		(8	)		(6	)		(5	)		(19	)		213		(6	)		33			240
Workers' compensation		228		39		267		24			6			5			35			252		6			44			302
Specialty packages		83		19		102		12			(3	)		-			9			95		(3	)		19			111
Surety and executive risk		58		13		71		3			4			1			8			61		4			14			79
Machinery and equipment		7		1		8		(1	)		-			-			(1	)		6		-			1			7
Total commercial lines		1,166		271		1,437		(3	)		11			(5	)		3			1,163		11			266			1,440
Personal auto		205		30		235		(3	)		3			-			-			202		3			30			235
Homeowners		217		32		249		16			(5	)		-			11			233		(5	)		32			260
Other personal		43		5		48		(8	)		2			-			(6	)		35		2			5			42
Total personal lines		465		67		532		5			-			-			5			470		-			67			537
Commercial casualty & property		6		2		8		18			6			10			34			24		6			12			42
Total excess & surplus lines		6		2		8		18			6			10			34			24		6			12			42
Total property casualty	$	1,637	$	340	$	1,977	$	20		$	17		$	5		$	42		$	1,657	$	17		$	345		$	2,019
Ceded loss and loss expense incurred at December 31, 2010
Commercial casualty	$	78	$	4	$	82	$	(48	)	$	(36	)	$	(28	)	$	(112	)	$	30	$	(36	)	$	(24	)	$	(30	)
Commercial property		5		3		8		7			(4	)		-			3			12		(4	)		3			11
Commercial auto		1		-		1		-			(1	)		-			(1	)		1		(1	)		-			-
Workers' compensation		10		1		11		-			(1	)		-			(1	)		10		(1	)		1			10
Specialty packages		-		1		1		-			(1	)		-			(1	)		-		(1	)		1			-
Surety and executive risk		3		1		4		8			-			-			8			11		-			1			12
Machinery and equipment		-		-		-		-			-			-			-			-		-			-			-
Total commercial lines		97		10		107		(33	)		(43	)		(28	)		(104	)		64		(43	)		(18	)		3
Personal auto		-		-		-		-			-			-			-			-		-			-			-
Homeowners		3		3		6		2			(6	)		-			(4	)		5		(6	)		3			2
Other personal		-		-		-		-			(2	)		-			(2	)		-		(2	)		-			(2	)
Total personal lines		3		3		6		2			(8	)		-			(6	)		5		(8	)		3			-
Commercial casualty & property		-		-		-		-			1			-			1			-		1			-			1
Total excess & surplus lines		-		-		-		-			1			-			1			-		1			-			1
Total property casualty	$	100	$	13	$	113	$	(31	)	$	(50	)	$	(28	)	$	(109	)	$	69	$	(50	)	$	(15	)	$	4
Net loss and loss expense incurred at December 31, 2010
Commercial casualty	$	217	$	113	$	330	$	(30	)	$	49		$	20		$	39		$	187	$	49		$	133		$	369
Commercial property		269		41		310		38			1			2			41			307		1			43			351
Commercial auto		220		38		258		(8	)		(5	)		(5	)		(18	)		212		(5	)		33			240
Workers' compensation		218		38		256		24			7			5			36			242		7			43			292
Specialty packages		83		18		101		12			(2	)		-			10			95		(2	)		18			111
Surety and executive risk		55		12		67		(5	)		4			1			-			50		4			13			67
Machinery and equipment		7		1		8		(1	)		-			-			(1	)		6		-			1			7
Total commercial lines		1,069		261		1,330		30			54			23			107			1,099		54			284			1,437
Personal auto		205		30		235		(3	)		3			-			-			202		3			30			235
Homeowners		213		29		242		14			1			1			16			227		1			30			258
Other personal		43		5		48		(8	)		4			-			(4	)		35		4			5			44
Total personal lines		461		64		525		3			8			1			12			464		8			65			537
Commercial casualty & property		6		2		8		18			5			10			33			24		5			12			41
Total excess & surplus lines		6		2		8		18			5			10			33			24		5			12			41
Total property casualty	$	1,536	$	327	$	1,863	$	51		$	67		$	34		$	152		$	1,587	$	67		$	361		$	2,015

16

Consolidated Cincinnati Insurance Companies

10-Year Property Casualty Data - All Lines

	Years ended December 31,
(Dollars in millions)	2010			2009			2008			2007			2006			2005			2004			2003			2002			2001
Premiums
Adjusted written premiums – statutory*	$	2,952		$	2,919		$	3,040		$	3,149		$	3,172		$	3,097		$	3,026		$	2,789		$	2,496		$	2,188
Codification		-			-			-			-			-			-			-			-			-			402
Written premium adjustment – statutory		11			(8	)		(30	)		(32	)		6			(21	)		(29	)		26			117			-
Reported written premiums – statutory**		2,963			2,911			3,010			3,117			3,178			3,076			2,997			2,815			2,613			2,590
Unearned premium change		(39	)		-			-			8			(14	)		(18	)		(78	)		(162	)		(222	)		(517	)
Earned premiums (GAAP)	$	2,924		$	2,911		$	3,010		$	3,125		$	3,164		$	3,058		$	2,919		$	2,653		$	2,391		$	2,073
Year-over-year growth rate:
Adjusted written premiums – statutory		1	%		(4	) %		(3	) %		(1	) %		2	%		2	%		8	%		12	%		14	%		13	%
Written premiums – statutory		2	%		(3	) %		(3	) %		(2	) %		3	%		3	%		6	%		8	%		1	%		38	%
Earned premiums		-	%		(3	) %		(4	) %		(1	) %		3	%		5	%		10	%		11	%		15	%		13	%
Statutory combined ratio
Reported statutory combined ratio*		101.8	%		104.4	%		100.4	%		90.3	%		93.9	%		89.0	%		89.4	%		94.2	%		98.4	%		99.5	%
Codification		-			-			-			-			-			-			-			-			-			4.1
Written premium adjustment – statutory	nm			nm			nm			nm			nm			nm			nm			nm				1.2			-
One-time item		-			-			-			-			-			-			-			0.8			-			-
Statutory combined ratio (adjusted)		101.8	%		104.4	%		100.4	%		90.3	%		93.9	%		89.0	%		89.4	%		95.0	%		99.6	%		103.6	%
Less catastrophe losses		5.1			5.7			6.8			0.8			5.5			4.1			5.1			3.6			3.6			3.1
Statutory combined ratio excluding catastrophe losses (adjusted)		96.7	%		98.7	%		93.6	%		89.5	%		88.4	%		84.9	%		84.3	%		91.4	%		96.0	%		100.5	%
Reported commission expense ratio*		18.7	%		19.0	%		18.4	%		19.2	%		18.7	%		19.3	%		19.2	%		17.6	%		15.9	%		13.9	%
Codification		-			-			-			-			-			-			-			-			-			2.6
Written premium adjustment – statutory	nm			nm			nm			nm			nm			nm			nm			nm				0.8			-
Commission expense ratio (adjusted)		18.7	%		19.0	%		18.4	%		19.2	%		18.7	%		19.3	%		19.2	%		17.6	%		16.7	%		16.5	%
Reported other expense ratio*		14.2	%		13.7	%		13.7	%		12.5	%		11.7	%		10.5	%		10.1	%		8.9	%		9.6	%		8.7	%
Codification		-			-			-			-			-			-			-			-			-			1.5
Written premium adjustment – statutory	nm			nm			nm			nm			nm			nm			nm			nm				0.4			-
One-time item		-			-			-			-			-			-			-			0.8			-			-
Other expense ratio (adjusted)		14.2	%		13.7	%		13.7	%		12.5	%		11.7	%		10.5	%		10.1	%		9.7	%		10.0	%		10.2	%
Reported statutory expense ratio*		32.9	%		32.7	%		32.1	%		31.7	%		30.4	%		29.8	%		29.3	%		26.5	%		25.5	%		22.6	%
Codification		-			-			-			-			-			-			-			-			-			4.1
Written premium adjustment – statutory	nm			nm			nm			nm			nm			nm			nm			nm				1.2			-
One-time item		-			-			-			-			-			-			-			0.8			-			-
Statutory expense ratio (adjusted)		32.9	%		32.7	%		32.1	%		31.7	%		30.4	%		29.8	%		29.3	%		27.3	%		26.7	%		26.7	%
GAAP combined ratio
GAAP combined ratio		101.7	%		104.5	%		100.6	%		90.3	%		94.3	%		89.2	%		89.8	%		94.7	%		99.7	%		104.9	%
One-time item		-			-			-			-			-			-			-			0.8			-			-
GAAP combined ratio before one-time item		101.7	%		104.5	%		100.6	%		90.3	%		94.3	%		89.2	%		89.8	%		95.5	%		99.7	%		104.9	%
Written premiums to surplus
Adjusted premiums to statutory surplus ratio		0.781			0.800			0.905			0.731			0.668			0.739			0.721			1.002			1.067			0.864
Written premium adjustment		0.003			(0.002	)		(0.009	)		(0.007	)		0.001			(0.005	)		(0.007	)		0.010			0.050			0.159
Reported premiums to statutory surplus ratio		0.784			0.798			0.896			0.724			0.669			0.734			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.

**Effective January 1, 2001, written premiums have been recognized on an annualized basis at the effective date of the policy.

17

Consolidated Cincinnati Insurance Companies

6-Year Property Casualty Data - Commercial Lines

	Years ended December 31,
(Dollars in millions)	2010			2009			2008			2007			2006			2005
Premiums
Adjusted written premiums – statutory*	$	2,144		$	2,190		$	2,341		$	2,444		$	2,435		$	2,306
Written premium adjustment – statutory		11			(9	)		(30	)		(31	)		7			(16	)
Reported written premiums – statutory	$	2,155		$	2,181		$	2,311		$	2,413		$	2,442		$	2,290
Unearned premium change		(1	)		18			5			(2	)		(40	)		(36	)
Earned premiums (GAAP)	$	2,154		$	2,199		$	2,316		$	2,411		$	2,402		$	2,254
Year-over-year growth rate:
Adjusted written premiums – statutory		(2	)%		(6	)%		(4	)%		0	%		6	%		4	%
Written premiums – statutory		(1	)%		(6	)%		(4	)%		(1	)%		7	%		5	%
Earned premiums		(2	)%		(5	)%		(4	)%		0	%		7	%		6	%
Statutory combined ratio
Reported statutory combined ratio*		99.6	%		101.8	%		96.6	%		89.2	%		90.8	%		87.1	%
Less catastrophe losses		4.1			2.5			4.5			0.7			3.7			3.4
Statutory combined ratio excluding catastrophe losses (adjusted)		95.5	%		99.3	%		92.1	%		88.5	%		87.1	%		83.7	%
GAAP combined ratio
GAAP combined ratio		99.4	%		101.6	%		97.0	%		89.2	%		91.3	%		87.4	%

*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

18

Consolidated Cincinnati Insurance Companies

6-Year Property Casualty Data - Personal Lines

	Years ended December 31,
(Dollars in millions)	2010			2009			2008			2007			2006			2005
Premiums
Adjusted written premiums – statutory*	$	750		$	690		$	685		$	705		$	737		$	791
Written premium adjustment – statutory		-			1			-			(1	)		(1	)		(5	)
Reported written premiums – statutory	$	750		$	691		$	685		$	704		$	736		$	786
Unearned premium change		(29	)		(6	)		4			10			26			18
Earned premiums (GAAP)	$	721		$	685		$	689		$	714		$	762		$	804
Year-over-year growth rate:
Adjusted written premiums – statutory		9	%		1	%		(3	)%		(4	)%		(7	)%		(3	)%
Written premiums – statutory		9	%		1	%		(3	)%		(4	)%		(6	)%		(3	)%
Earned premiums		5	%		(1	)%		(4	)%		(6	)%		(5	)%		1	%
Statutory combined ratio
Reported statutory combined ratio*		107.1	%		111.4	%		111.6	%		94.1	%		103.6	%		94.3	%
Less catastrophe losses		8.1			16.1			14.5			1.3			11.3			6.3
Statutory combined ratio excluding catastrophe losses (adjusted)		99.0	%		95.3	%		97.1	%		92.8	%		92.3	%		88.0	%
GAAP combined ratio
GAAP combined ratio		107.7	%		111.8	%		111.9	%		93.9	%		103.6	%		94.4	%

*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.

19

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Consolidated

	Three months ended																								Six months ended						Nine months ended						Twelve months ended
(Dollars in millions)	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	$	648		$	677		$	685		$	682		$	635		$	669		$	666		$	695		$	1,367		$	1,361		$	2,044		$	2,030		$	2,692		$	2,665
Agency new business written premiums		107			109			106			92			94			107			107			97			198			204			307			311			414			405
Other written premiums		(33	)		(50	)		(42	)		(18	)		(49	)		(46	)		(50	)		(14	)		(60	)		(64	)		(110	)		(110	)		(143	)		(159	)
Reported written premiums – statutory*	$	722		$	736		$	749		$	756		$	680		$	730		$	723		$	778		$	1,505		$	1,501		$	2,241		$	2,231		$	2,963		$	2,911
Unearned premium change		23			7			(21	)		(48	)		33			3			10			(46	)		(69	)		(36	)		(62	)		(33	)		(39	)		-
Earned premiums	$	745		$	743		$	728		$	708		$	713		$	733		$	733		$	732		$	1,436		$	1,465		$	2,179		$	2,198		$	2,924		$	2,911
Year over year change %
Agency renewal written premiums		2	%		1	%		3	%		(2	) %		(5	) %		(3	) %		(10	) %		(5	) %		0	%		(8	) %		1	%		(6	) %		1	%		(6	) %
Agency new business written premiums		14			2			(1	)		(5	)		(6	)		15			7			28			(3	)		17			(1	)		16			2			10
Other written premiums		33			(9	)		16			(29	)		4			13			(4	)		58			6			21			0			19			10			15
Reported written premiums – statutory*		6			1			4			(3	)		(5	)		0			(8	)		0			0			(4	)		0			(3	)		2			(3	)
Paid losses and loss expenses
Losses paid	$	400		$	421		$	382		$	334		$	381		$	390		$	412		$	401		$	716		$	813		$	1,137		$	1,203		$	1,537		$	1,584
Loss expenses paid		93			84			72			80			96			83			84			78			151			162			235			245			328			340
Loss and loss expenses paid	$	493		$	505		$	454		$	414		$	477		$	473		$	496		$	479		$	867		$	975		$	1,372		$	1,448		$	1,865		$	1,924
Statutory combined ratio
Loss ratio		47.7	%		58.8	%		65.1	%		54.3	%		49.9	%		50.2	%		71.6	%		62.5	%		59.8	%		67.0	%		59.5	%		61.4	%		56.5	%		58.6	%
Allocated loss expense ratio		6.7			5.9			5.7			6.0			7.4			6.1			6.7			4.9			5.8			5.8			5.9			5.9			6.1			6.3
Unallocated loss expense ratio		6.5			6.9			5.2			6.7			7.7			6.4			6.3			6.8			6.0			6.6			6.2			6.5			6.3			6.8
Net underwriting expense ratio		33.3			32.9			31.3			34.1			34.1			34.2			32.0			30.9			32.7			31.4			32.8			32.4			32.9			32.7
Statutory combined ratio		94.2	%		104.5	%		107.3	%		101.1	%		99.1	%		96.9	%		116.6	%		105.1	%		104.3	%		110.8	%		104.4	%		106.2	%		101.8	%		104.4	%
Contribution from catastrophe losses		0.7			3.8			13.6			2.1			(1.7	)		0.9			16.1			7.2			8.0			11.6			6.5			8.1			5.1			5.7
Statutory combined ratio excluding catastrophe losses		93.5	%		100.7	%		93.7	%		99.0	%		100.8	%		96.0	%		100.5	%		97.9	%		96.3	%		99.2	%		97.9	%		98.1	%		96.7	%		98.7	%
Commission expense ratio		19.9	%		18.7	%		17.9	%		18.4	%		20.4	%		20.1	%		18.2	%		17.7	%		18.1	%		17.9	%		18.3	%		18.7	%		18.7	%		19.0	%
Other expense ratio		13.4			14.2			13.4			15.7			13.7			14.1			13.8			13.2			14.6			13.5			14.5			13.7			14.2			13.7
Statutory expense ratio		33.3	%		32.9	%		31.3	%		34.1	%		34.1	%		34.2	%		32.0	%		30.9	%		32.7	%		31.4	%		32.8	%		32.4	%		32.9	%		32.7	%
GAAP combined ratio
GAAP combined ratio		93.1	%		103.9	%		107.6	%		102.6	%		98.6	%		95.1	%		116.6	%		107.5	%		105.2	%		112.1	%		104.7	%		106.4	%		101.7	%		104.5	%
Contribution from catastrophe losses		0.7			3.8			13.6			2.1			(1.7	)		0.9			16.1			7.2			8.0			11.6			6.5			8.1			5.1			5.7
GAAP combined ratio excluding catastrophe losses		92.4	%		100.1	%		94.0	%		100.5	%		100.3	%		94.2	%		100.5	%		100.3	%		97.2	%		100.5	%		98.2	%		98.3	%		96.6	%		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.

20

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Commercial Lines

	Three months ended																								Six months ended						Nine months ended						Twelve months ended
(Dollars in millions)	12/31/10			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	$	474		$	479		$	492		$	533		$	478		$	489		$	488		$	557		$	1,025		$	1,045		$	1,504		$	1,535		$	1,978		$	2,013
Agency new business written premiums		76			74			73			66			67			76			79			76			139			155			213			231			289			298
Other written premiums		(26	)		(42	)		(33	)		(11	)		(42	)		(37	)		(43	)		(7	)		(44	)		(51	)		(86	)		(88	)		(112	)		(130	)
Reported written premiums – statutory*	$	524		$	511		$	532		$	588		$	503		$	528		$	524		$	626		$	1,120		$	1,149		$	1,631		$	1,678		$	2,155		$	2,181
Unearned premium change		22			36			6			(65	)		29			27			32			(69	)		(59	)		(37	)		(23	)		(11	)		(1	)		18
Earned premiums	$	546		$	547		$	538		$	523		$	532		$	555		$	556		$	557		$	1,061		$	1,112		$	1,608		$	1,667		$	2,154		$	2,199
Year over year change %
Agency renewal written premiums		(1	) %		(2	) %		1	%		(4	) %		(7	) %		(3	) %		(12	) %		(5	) %		(2	) %		(8	) %		(2	) %		(7	) %		(2	) %		(7	) %
Agency new business written premiums		13			(3	)		(8	)		(13	)		(19	)		0			(9	)		15			(10	)		1			(8	)		1			(3	)		(4	)
Other written premiums		38			(14	)		23			(57	)		7			10			(5	)		76			14			28			2			21			14			17
Reported written premiums – statutory*		4			(3	)		2			(6	)		(9	)		(2	)		(12	)		0			(3	)		(6	)		(3	)		(5	)		(1	)		(6	)
Paid losses and loss expenses
Losses paid	$	284		$	290		$	266		$	230		$	267		$	267		$	275		$	271		$	497		$	546		$	786		$	813		$	1,070		$	1,080
Loss expenses paid		75			65			58			63			76			66			67			60			120			126			186			192			261			268
Loss and loss expenses paid	$	359		$	355		$	324		$	293		$	343		$	333		$	342		$	331		$	617		$	672		$	972		$	1,005		$	1,331		$	1,348
Statutory combined ratio
Loss ratio		44.2	%		57.1	%		59.0	%		53.8	%		50.2	%		46.2	%		66.0	%		57.6	%		56.4	%		61.8	%		56.7	%		56.7	%		53.5	%		55.1	%
Allocated loss expense ratio		7.9			6.9			6.5			7.1			8.7			7.1			7.8			5.8			6.8			6.8			6.8			6.9			7.1			7.3
Unallocated loss expense ratio		6.4			6.7			4.8			6.6			7.9			6.0			5.7			6.4			5.7			6.0			6.0			6.0			6.1			6.5
Net underwriting expense ratio		33.4			34.8			31.7			31.9			35.1			35.6			32.5			29.2			31.8			30.8			32.7			32.2			32.9			32.9
Statutory combined ratio		91.9	%		105.5	%		102.0	%		99.3	%		102.0	%		94.9	%		112.0	%		99.0	%		100.7	%		105.4	%		102.2	%		101.8	%		99.6	%		101.8	%
Contribution from catastrophe losses		1.0			3.2			10.4			1.8			(1.8	)		(1.2	)		10.2			2.5			6.2			6.4			5.2			3.8			4.1			2.5
Statutory combined ratio excluding catastrophe losses		90.9	%		102.3	%		91.6	%		97.5	%		103.8	%		96.1	%		101.8	%		96.5	%		94.5	%		99.0	%		97.0	%		98.0	%		95.5	%		99.3	%
Commission expense ratio		19.0	%		19.0	%		17.6	%		17.2	%		20.0	%		20.3	%		18.1	%		16.4	%		17.4	%		17.2	%		17.9	%		18.2	%		18.1	%		18.6	%
Other expense ratio		14.4			15.8			14.1			14.7			15.1			15.3			14.4			12.8			14.4			13.5			14.8			14.0			14.8			14.3
Statutory expense ratio		33.4	%		34.8	%		31.7	%		31.9	%		35.1	%		35.6	%		32.5	%		29.2	%		31.8	%		30.7	%		32.7	%		32.2	%		32.9	%		32.9	%
GAAP combined ratio
GAAP combined ratio		90.6	%		103.4	%		101.7	%		102.1	%		100.8	%		92.4	%		110.9	%		102.2	%		101.9	%		106.6	%		102.4	%		101.9	%		99.4	%		101.6	%
Contribution from catastrophe losses		1.0			3.2			10.4			1.8			(1.8	)		(1.2	)		10.2			2.5			6.2			6.4			5.2			3.8			4.1			2.5
GAAP combined ratio excluding catastrophe losses		89.6	%		100.2	%		91.3	%		100.3	%		102.6	%		93.6	%		100.7	%		99.7	%		95.7	%		100.2	%		97.2	%		98.1	%		95.3	%		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.

21

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Personal Lines

	Three months ended																								Six months ended						Nine months ended						Twelve months ended
(Dollars in millions)	12/31/10			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	$	166		$	189		$	187		$	143		$	153		$	177		$	176		$	137		$	330		$	313		$	519		$	490		$	685		$	642
Agency new business written premiums		23			25			24			18			20			21			19			14			42			34			67			55			90			75
Other written premiums		(6	)		(6	)		(7	)		(6	)		(6	)		(8	)		(5	)		(6	)		(13	)		(13	)		(19	)		(21	)		(25	)		(26	)
Reported written premiums – statutory*	$	183		$	208		$	204		$	155		$	167		$	190		$	190		$	145		$	359		$	334		$	567		$	524		$	750		$	691
Unearned premium change		3			(26	)		(25	)		19			5			(20	)		(18	)		26			(6	)		9			(32	)		(11	)		(29	)		(6	)
Earned premiums	$	186		$	182		$	179		$	174		$	172		$	170		$	172		$	171		$	353		$	343		$	535		$	513		$	721		$	685
Year over year change %
Agency renewal written premiums		8	%		7	%		6	%		4	%		(2	) %		(4	) %		(5	) %		(6	) %		5	%		(6	) %		6	%		(5	) %		7	%		(4	) %
Agency new business written premiums		15			19			26			29			82			91			90			75			24			79			22			83			20			79
Other written premiums		0			25			(40	)		0			25			33			0			(50	)		0			(30	)		10			5			4			10
Reported written premiums – statutory*		10			9			7			7			5			3			(1	)		(3	)		7			(2	)		8			0			9			1
Paid losses and loss expenses
Losses paid	$	116		$	128		$	114		$	103		$	112		$	121		$	137		$	130		$	217		$	267		$	345		$	389		$	461		$	501
Loss expenses paid		17			17			14			17			19			18			18			18			30			35			48			52			65			71
Loss and loss expenses paid	$	133		$	145		$	128		$	120		$	131		$	139		$	155		$	148		$	247		$	302		$	393		$	441		$	526		$	572
Statutory combined ratio
Loss ratio		60.5	%		63.2	%		82.4	%		55.3	%		49.4	%		63.1	%		90.1	%		78.3	%		69.0	%		84.2	%		67.0	%		77.1	%		65.4	%		70.2	%
Allocated loss expense ratio		2.5			1.9			2.0			1.9			2.7			2.4			2.4			1.9			2.0			2.2			1.9			2.2			2.1			2.4
Unallocated loss expense ratio		6.9			7.2			6.7			7.2			7.1			7.8			8.2			8.3			6.9			8.3			7.1			8.1			6.9			7.8
Net underwriting expense ratio		32.6			28.4			30.1			42.1			30.2			29.5			29.8			35.4			35.3			32.1			32.8			31.2			32.7			31.0
Statutory combined ratio		102.5	%		100.7	%		121.2	%		106.5	%		89.4	%		102.8	%		130.5	%		123.9	%		113.2	%		126.8	%		108.8	%		118.7	%		107.1	%		111.4	%
Contribution from catastrophe losses		(0.3	)		6.0			23.8			3.0			(1.4	)		7.9			35.4			22.6			13.6			29.0			11.0			22.0			8.1			16.1
Statutory combined ratio excluding catastrophe losses		102.8	%		94.7	%		97.4	%		103.5	%		90.8	%		94.9	%		95.1	%		101.3	%		99.6	%		97.8	%		97.8	%		96.7	%		99.0	%		95.3	%
Commission expense ratio		21.7	%		17.1	%		18.1	%		22.4	%		20.9	%		19.1	%		18.0	%		22.5	%		20.0	%		20.0	%		19.0	%		19.6	%		19.6	%		20.0	%
Other expense ratio		10.9			11.3			12.0			19.7			9.3			10.4			11.7			12.9			15.3			12.2			13.8			11.6			13.1			11.0
Statutory expense ratio		32.6	%		28.4	%		30.1	%		42.1	%		30.2	%		29.5	%		29.7	%		35.4	%		35.3	%		32.2	%		32.8	%		31.2	%		32.7	%		31.0	%
GAAP combined ratio
GAAP combined ratio		101.9	%		103.4	%		123.4	%		102.5	%		90.9	%		102.3	%		133.2	%		120.7	%		113.1	%		126.9	%		109.8	%		118.7	%		107.7	%		111.8	%
Contribution from catastrophe losses		(0.3	)		6.0			23.8			3.0			(1.4	)		7.9			35.4			22.6			13.6			29.0			11.0			22.0			8.1			16.1
GAAP combined ratio excluding catastrophe losses		102.2	%		97.4	%		99.6	%		99.5	%		92.3	%		94.4	%		97.8	%		98.1	%		99.5	%		97.9	%		98.8	%		96.7	%		99.6	%		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.

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The Cincinnati Life Insurance Company

Statutory Statements of Income

	For the Three Months Ended December 31,												For the Twelve Months Ended December 31,
(Dollars in millions)	2010			2009			Change			% Change			2010			2009			Change			% Change
Net premiums written	$	93		$	110		$	(17	)		(15	)	$	369		$	338		$	31			9
Net investment income		33			33			-		nm				134			126			8			6
Amortization of interest maintenance reserve		-			(1	)		1		nm				(2	)		(6	)		5			67
Commissions and expense allowances on reinsurance ceded		2			2			-		nm				7			7			-		nm
Income from fees associated with Separate Accounts		1			-			1		nm				2			1			1			100
Total revenues	$	129		$	144		$	(15	)		(10	)	$	510		$	466		$	44			9
Death benefits and matured endowments	$	17		$	11		$	6			55		$	57		$	53		$	4			8
Annuity benefits		10			7			3			43			38			30			8			27
Disability benefits and benefits under accident and health contracts		1			-			1		nm				2			2			-		nm
Surrender benefits and group conversions		5			6			(1	)		(17	)		23			21			2			10
Interest and adjustments on deposit-type contract funds		3			3			-		nm				11			11			-		nm
Increase in aggregate reserves for life and accident and health contracts		74			92			(18	)		(20	)		296			275			21			8
Payments on supplementary contracts with life contingencies		-			-			-		nm				-			-			-		nm
Total benefit expenses	$	110		$	119		$	(9	)		(8	)	$	427		$	392		$	35			9
Commissions	$	12		$	13		$	(1	)		(8	)	$	46		$	42		$	4			10
General insurance expenses and taxes		9			9			-		nm				38			36			2			6
Increase in loading on deferred and uncollected premiums		(1	)		(1	)		-		nm				(6	)		(5	)		(1	)		(20	)
Net transfers from Separate Accounts		-			-			-		nm				(2	)		(4	)		2			50
Other deductions		-			-			-		nm				-			-			-		nm
Total operating expenses	$	20		$	21		$	(1	)		(5	)	$	76		$	69		$	7			10
Federal and foreign income tax benefit		(1	)		(1	)		-		nm				(6	)		(6	)		-		nm
Net gain from operations before realized capital gains	$	-		$	5		$	(5	)	nm			$	13		$	11		$	2			18
Net realized gains net of capital gains tax		-			11			(11	)	nm				2			4			(2	)		(50	)
Net income (statutory)	$	-		$	16		$	(16	)	nm			$	15		$	15		$	-		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.

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