8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report:  April 27, 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 April 27, 2011, Cincinnati Financial Corporation issued the attached news release titled “Cincinnati Financial Reports First-Quarter 2011 Results,” furnished as Exhibit 99.1 hereto and incorporated herein by reference. On April 27, 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.

Item 9.01 Financial Statements and Exhibits.

(c)  Exhibits

Exhibit 99.1 –	News release dated April 27, 2011, “Cincinnati Financial Reports First-Quarter 2011 Results”
Exhibit 99.2 –	Supplemental Financial Data for the period ending March 31, 2011 distributed April 27, 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: April 27, 2011	/S/Steven J. Johnston
	Steven J. Johnston, FCAS, MAAA, CFA
	Chief Financial Officer, Senior Vice President, Secretary and Treasurer

EX-99.1

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

Cincinnati Financial Reports First-Quarter 2011 Results

Cincinnati, April 27, 2011 – Cincinnati Financial Corporation (Nasdaq: CINF) today reported:

· First-quarter 2011 net income of $62 million, or 38 cents per share, compared with $68 million, or 42 cents per share, in 2010.

· Operating income* of $55 million, or 33 cents per share, compared with $63 million, or 39 cents per share.

· $6 million decrease in first-quarter 2011 net income was driven by a $7 million after-tax decrease in the contribution from property casualty underwriting operations. The after-tax effect of property casualty catastrophe losses, mostly weather-related, was $17 million higher in the first quarter of 2011 compared with the same period of 2010.

· $31.40 book value per share at March 31, 2011, up 2 percent from December 31, 2010.

· 2.9 percent value creation ratio for the first quarter of 2011, compared with 3.4 percent for the 2010 first quarter.

Financial Highlights
(Dollars in millions except share data)	Three months ended March 31,
	2011		2010		Change %
Revenue Highlights
Earned premiums	$	782	$	746		5
Investment income, pre-tax		131		130		1
Total revenues		929		887		5
Income Statement Data
Net income	$	62	$	68		(9	)
Net realized investment gains and losses		7		5		40
Operating income*	$	55	$	63		(13	)
Per Share Data (diluted)
Net income	$	0.38	$	0.42		(10	)
Net realized investment gains and losses		0.05		0.03		67
Operating income*	$	0.33	$	0.39		(15	)
Book value	$	31.40	$	29.86		5
Cash dividend declared	$	0.40	$	0.395		1
Diluted weighted average shares outstanding		163,669,998		163,310,451		0

Insurance Operations First-Quarter Highlights

· 103.9 percent first-quarter 2011 property casualty combined ratio, up from 102.6 percent for the first quarter of 2010.

· 3 percent growth in property casualty net written premiums, which included personal lines segment growth of 12 percent.

· $102 million first-quarter 2011 property casualty new business written by agencies, up $10 million from first-quarter 2010. $8 million of the increase was standard market business contributed by agencies appointed since the beginning of 2010.

· 4 cents per share contribution from life insurance to first-quarter operating income, down 1 cent from first-quarter 2010.

Investment and Balance Sheet Highlights

· 1 percent first-quarter 2011 growth in pre-tax investment income as higher dividends offset lower interest income that reflected continued depressed yields in the bond market.

· 2 percent sequential-quarter increase in fair value of invested assets plus cash at March 31, 2011, including equity portfolio growth of 2 percent and bond portfolio growth of 2 percent.

· $1.126 billion parent company cash and marketable securities at March 31, 2011, up 8 percent from year-end.

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

** Forward-looking statements and related assumptions are subject to the risks outlined in the company’s safe harbor statement (see Page 8).

CINF 1Q11 Earnings Release 1

Strong Investment Performance

Kenneth W. Stecher, president and chief executive officer, commented, “Cincinnati Financial increased our book value, invested assets, unrealized gains, and the surplus of our insurance companies during the first quarter of 2011. A higher mix of equities compared with most of our peers in the insurance industry gives our portfolio more opportunity to hold its market value when interest rates rise and reduce bond values. Unrealized gains for our investment portfolio increased over 10 percent with the equity security portion increasing over 15 percent.

“Another advantage of our equity portfolio is the dividend income it generates. Our pre-tax dividend income rose 8 percent for the first quarter, offsetting lower interest income from bonds and allowing us to increase total investment income by 1 percent.”

Mixed Property Casualty Underwriting Performance

Stecher noted, “Growth of our property casualty insurance business was satisfactory in the first quarter, with a 3 percent increase in net written premiums. Underwriting was unprofitable, leading to lower earnings. Losses from natural catastrophes were at the second highest level for a first quarter in at least a dozen years. These claims are opportunities to prove the value of our policies and claims service – and to grow our business over time. While catastrophes cause volatility of earnings in the property casualty insurance industry, investors, agents and policyholders can rely on Cincinnati Financial to maintain consistency in estimating loss reserves. During the first quarter, we increased property casualty net loss and loss expense reserves over 1 percent, nearly $50 million, from year-end 2010.

“Of the seven first-quarter 2011 storms across our operating territory, the largest was a $13 million event in late February that affected our policyholders in several Midwest states. In total, catastrophes accounted for 5.5 percentage points of our 103.9 percent first-quarter combined ratio, including approximately 1 percentage point for catastrophe losses we assumed under a reinsurance agreement for the earthquake in Japan.

“Earned premiums and new business written premiums rose in each of our property casualty segments as growth initiatives continued. While we are seeing signs of marketplace improvement, our commercial lines pricing continues to decline in the low single digits, and we continue to walk away from underpriced business. A modest increase in commercial lines renewal written premiums reflected improving exposure levels as many businesses we insure continued to recover. Rates continued to firm for personal lines, where our net written premiums and new business written premiums rose at double-digit rates; and pricing is starting to firm for excess and surplus lines, where net written premiums rose over 30 percent and new business rose more than 10 percent. Earned premiums for our largest life insurance product, term life insurance, also grew almost 10 percent.

“Along with better market conditions, we believe improved pricing precision is our most effective strategy to improve profitability. We are using predictive data to develop and refine pricing and underwriting tools that seek to determine an appropriate price for each risk, higher or lower depending on measurable risk characteristics. These tools have been implemented for our major personal lines and workers’ compensation policies, and we now are piloting modeled pricing for the coverages in our commercial insurance packages including property, general liability and business auto.”

Responsiveness to Our Independent Agency Customers

“Our agents continue to give us opportunities to quote and write their best accounts, selling the value of a Cincinnati policy even when other quotes may be less. In turn, we are responding to their needs. They need efficiency and speed to serve their clients, so we continue to improve our processing systems and streamline our workflows. They need a strong Cincinnati field staff, so we continue to add loss control associates and to split marketing territories, increasing service for policyholders and support for agents in areas with high growth potential. They need outstanding claims service, so we continue to add staff expertise through field specialists and headquarters services. They need training resources to get new producers started and to assure the continuity and succession of their business and ours, so we continue to expand our agent curriculums.

Stecher concluded, “This past Monday, our board announced several leadership changes that provide for succession and assure continuity for our organization. As chairman, I’ll miss the daily experiences driving our key initiatives and working directly with the people whose contributions are making us a stronger competitor. Over the past three years, we have put in place a strong foundation and a vision of our future. Our next president and CEO, Steve Johnston, is uniquely qualified to take the lead in the next phase, where we will increase growth and profitability by further advancing our new technology and analytics capabilities. At the same time, Steve and his team will rededicate themselves to enhancing our proven advantages of solid agency relationships, superior claims service and exceptional financial strength.”

CINF 1Q11 Earnings Release 2

 

Consolidated Property Casualty Insurance Operations
(Dollars in millions)	Three months ended March 31,
	2011			2010			Change %
Earned premiums	$	745		$	708			5
Fee revenues		1			1			0
Total revenues		746			709			5
Loss and loss expenses		530			475			12
Underwriting expenses		245			252			(3	)
Underwriting loss	$	(29	)	$	(18	)		(61	)
Ratios as a percent of earned premiums:							Pt. Change
Loss and loss expenses		71.1	%		67.0	%		4.1
Underwriting expenses		32.8			35.6			(2.8	)
Combined ratio		103.9	%		102.6	%		1.3
							Change %
Agency renewal written premiums	$	708		$	682			4
Agency new business written premiums		102			92			11
Other written premiums		(31	)		(18	)		(72	)
Net written premiums	$	779		$	756			3
Loss and loss expense ratios as a percent of earned premiums:							Pt. Change
Current accident year before catastrophe losses		73.3	%		69.5	%		3.8
Current accident year catastrophe losses		5.7			3.1			2.6
Prior accident years before catastrophe losses		(7.7	)		(4.6	)		(3.1	)
Prior accident years catastrophe losses		(0.2	)		(1.0	)		0.8
Total loss and loss expenses		71.1	%		67.0	%		4.1
Current accident year combined ratio before catastrophe losses		106.1	%		105.1	%		1.0

· $23 million or 3 percent increase in first-quarter 2011 property casualty net written premiums. Growth largely reflected targeted growth initiatives including $18 million from personal lines and $5 million from excess and surplus lines.

· $10 million increase to $102 million new business written by agencies in the first quarter of 2011 reflected the contribution from growth initiatives in recent years. $8 million of the increase was from standard market property casualty new business produced by agencies appointed since the beginning of 2010.

· 1,263 agency relationships in 1,569 reporting locations marketing our standard market property casualty insurance products at March 31, 2011, compared with 1,245 agency relationships in 1,544 reporting locations at year-end 2010. Forty new agencies were appointed during the first three months of 2011.

· 1.3 percentage-point higher first-quarter combined ratio, driven primarily by a $26 million pretax increase in losses from natural catastrophe events, mostly weather-related.

· Underwriting results benefited from favorable prior accident year reserve development of $58 million for the first quarter, compared with $39 million for the same period of 2010.

· The lower first-quarter 2011 underwriting expense ratio reflected expense management efforts and higher earned premiums, compared with the first-quarter 2010 ratio, which also included an increase to provisions for commitments and contingent liabilities.

The following table shows incurred catastrophe losses for the first quarters of 2011 and 2010.

(In millions, net of reinsurance)			Three months ended March 31,
									Excess
			Commercial			Personal			and surplus
Dates	Cause of loss	Region	lines			lines			lines		Total
2011
Jan. 31 - Feb 3	Flood, freezing, ice, snow, wind	South, Midwest	$	5		$	5		$	-	$	10
Feb. 27 - 28	Flood, hail, tornado, wind	Midwest		5			8			-		13
Mar. 11	Earthquake	Japan		8			-			-		8
All other 2011 catastrophes				5			6			-		11
Development on 2010 and prior catastrophes				4			(5	)		-		(1	)
Calendar year incurred total			$	27		$	14		$	-	$	41
2010
Jan. 7	Freezing, wind	South, Midwest	$	4		$	2		$	-	$	6
Feb. 4	Ice, snow, wind	East, Midwest		4			1			-		5
Feb. 9	Ice, snow, wind	East, Midwest		6			2			-		8
All other 2010 catastrophes				2			1			-		3
Development on 2009 and prior catastrophes				(6	)		(1	)		-		(7	)
Calendar year incurred total			$	10		$	5		$	-	$	15

CINF 1Q11 Earnings Release 3

Insurance Operations Highlights

Commercial Lines Insurance Operations
(Dollars in millions)	Three months ended March 31,
	2011			2010			Change %
Earned premiums	$	540		$	523			3
Fee revenues		1			1			0
Total revenues		541			524			3
Loss and loss expenses		374			353			6
Underwriting expenses		188		181				4
Underwriting loss	$	(21	)	$	(10	)		(110	)
Ratios as a percent of earned premiums:							Pt. Change
Loss and loss expenses		69.2	%		67.4	%		1.8
Underwriting expenses		34.8			34.7			0.1
Combined ratio		104.0	%		102.1	%		1.9
							Change %
Agency renewal written premiums	$	542		$	533			2
Agency new business written premiums		71			66			8
Other written premiums		(25	)		(11	)		(127	)
Net written premiums	$	588		$	588			0
Loss and loss expense ratios as a percent of earned premiums:							Pt. Change
Current accident year before catastrophe losses		74.5	%		71.1	%		3.4
Current accident year catastrophe losses		4.3			3.0			1.3
Prior accident years before catastrophe losses		(10.2	)		(5.5	)		(4.7	)
Prior accident years catastrophe losses		0.6			(1.2	)		1.8
Total loss and loss expenses		69.2	%		67.4	%		1.8
Current accident year combined ratio before catastrophe losses		109.3	%		105.8	%		3.5

· No change in first-quarter commercial lines net written premiums as recorded increases in renewal and new business written premiums were offset by an adjustment for estimated premiums of policies in effect but not yet processed.

· $9 million or 2 percent increase in renewal written premiums largely reflected the effects of improving economic conditions on insured exposure levels, partially offset by a low-single-digit average pricing decline for the first quarter of 2011 that was similar to the full-year 2010 average pricing decline.

· $5 million increase to $71 million in first-quarter 2011 new business premiums, in line with the first-quarter average of $71 million for 2008 and 2009.

· 104.0 percent first-quarter 2011 combined ratio was 1.9 percentage points higher, driven by a 3.1 point increase in catastrophe losses that included 1.5 points from assumed reinsurance losses related to the Japan earthquake event.

· 74.5 percent ratio for current accident year losses and loss expenses before catastrophes matched 74.5 percent for full-year 2010.

CINF 1Q11 Earnings Release 4

Personal Lines Insurance Operations
(Dollars in millions)	Three months ended March 31,
	2011			2010			Change %
Earned premiums	$	190		$	174			9
Fee revenues		-			-		nm
Total revenues		190			174			9
Loss and loss expenses		141			112			26
Underwriting expenses		52			67			(22	)
Underwriting loss	$	(3	)	$	(5	)		40
Ratios as a percent of earned premiums:							Pt. Change
Loss and loss expenses		74.1	%		64.4	%		9.7
Underwriting expenses		27.3			38.1			(10.8	)
Combined ratio		101.4	%		102.5	%		(1.1	)
							Change %
Agency renewal written premiums	$	156		$	143			9
Agency new business written premiums		22			18			22
Other written premiums		(5	)		(6	)		17
Net written premiums	$	173		$	155			12
Loss and loss expense ratios as a percent of earned premiums:							Pt. Change
Current accident year before catastrophe losses		67.9	%		63.7	%		4.2
Current accident year catastrophe losses		10.0			3.3			6.7
Prior accident years before catastrophe losses		(1.2	)		(2.3	)		1.1
Prior accident years catastrophe losses		(2.6	)		(0.3	)		(2.3	)
Total loss and loss expenses		74.1	%		64.4	%		9.7
Current accident year combined ratio before catastrophe losses		95.2	%		101.8	%		(6.6	)

· $18 million or 12 percent growth in first-quarter 2011 personal lines net written premiums, largely driven by higher renewal and new business written premiums that reflected improved pricing.

· 1.1 percentage-point improvement in first-quarter 2011 combined ratio primarily due to a 10.8 point reduction in the underwriting expense ratio that offset a 4.7 point increase in large losses and a 4.4 point rise in weather-related catastrophe losses.

· 67.9 percent ratio for current accident year losses and loss expenses before catastrophes was a 2.5 percentage-point improvement over full-year 2010, largely reflecting improved pricing.

· 10.8 percentage-point improvement in the underwriting expense ratio was primarily due to first-quarter 2010 provisions for commitments and contingent liabilities in addition to lower agency profit-sharing expenses.

CINF 1Q11 Earnings Release 5

Excess and Surplus Lines Insurance Operations
(Dollars in millions)	Three months ended March 31,
	2011			2010			Change %
Earned premiums	$	15		$	11			36
Loss and loss expenses		15			10			50
Underwriting expenses		5			4			25
Underwriting loss	$	(5	)	$	(3	)		(67	)
Ratios as a percent of earned premiums:							Pt. Change
Loss and loss expenses		102.7	%		91.4	%		11.3
Underwriting expenses		30.3			35.7			(5.4	)
Combined ratio		133.0	%		127.1	%		5.9
							Change %
Agency renewal written premiums	$	10		$	6			67
Agency new business written premiums		9			8			13
Other written premiums		(1	)		(1	)		0
Net written premiums	$	18		$	13			38
Loss and loss expense ratios as a percent of earned premiums:							Pt. Change
Current accident year before catastrophe losses		98.8	%		88.0	%		10.8
Current accident year catastrophe losses		1.7			0.0			1.7
Prior accident years before catastrophe losses		1.1			3.6			(2.5	)
Prior accident years catastrophe losses		1.1			(0.2	)		1.3
Total loss and loss expenses		102.7	%		91.4	%		11.3
Current accident year combined ratio before catastrophe losses		129.1	%		123.7	%		5.4

· $5 million or 38 percent growth in first-quarter 2011 excess and surplus lines net written premiums, largely driven by the initial opportunity to renew many accounts for the first time, in addition to $1 million growth in new business written.

· 5.9 percentage-point rise in first-quarter combined ratio primarily due to new large losses greater than $250,000 and reserves for estimated losses incurred but not reported (IBNR).

Life Insurance Operations
(In millions)	Three months ended March 31,
	2011		2010		Change %
Term life insurance	$	25	$	23		9
Universal life insurance		5		9		(44	)
Other life insurance, annuity, and disability income products		7		7		0
Earned premiums		37		39		(5	)
Investment income, net of expenses		33		32		3
Other income		1		-	nm
Total revenues, excluding realized investment gains and losses		71		71		0
Contract holders benefits		45		42		7
Underwriting expenses		16		16		0
Total benefits and expenses		61		58		5
Net income before income tax and realized investment gains and losses		10		13		(23	)
Income tax		3		5		(40	)
Net income before realized investment gains and losses	$	7	$	8		(13	)

· $2 million or 5 percent decrease in first-quarter 2011 earned premiums, as lower universal life premiums offset 9 percent growth for term life insurance, our largest life insurance product line. Face amount of life policies in force rose 1 percent to $75.026 billion at March 31, 2011, from $74.124 billion at year-end 2010.

· $60 million in first-quarter 2011 fixed annuity deposits received compared with $65 million in first quarter 2010 and $201 million in full-year 2010. Cincinnati Life does not offer variable or indexed products.

· $1 million decline in first-quarter 2011 profit was primarily due to less favorable mortality experience.

· $8 million or 1 percent first-quarter 2011 growth to $756 million in GAAP shareholders’ equity for The Cincinnati Life Insurance Company.

CINF 1Q11 Earnings Release 6

Investment and Balance Sheet Highlights

Investment Operations
(In millions)	Three months ended March 31,
	2011			2010			Change %
Total investment income, net of expenses, pre-tax	$	131		$	130			1
Investment interest credited to contract holders		(20	)		(19	)		(5	)
Realized investment gains and losses summary:
Realized investment gains and losses		38			3		nm
Change in fair value of securities with embedded derivatives		4			6			(33	)
Other-than-temporary impairment charges		(30	)		(1	)	nm
Total realized investment gains and losses		12			8			50
Investment operations profit	$	123		$	119			3
(In millions)	Three months ended March 31,
		2011			2010		Change %
Investment income:
Interest	$	106		$	107			(1	)
Dividends		26			24			8
Other		1			1			0
Investment expenses		(2	)		(2	)		0
Total investment income, net of expenses, pre-tax		131			130			1
Income taxes		(32	)		(32	)		0
Total investment income, net of expenses, after-tax	$	99		$	98			1
Effective tax rate		24.5	%		24.5	%
Average yield pre-tax		4.6	%		4.8	%
Average yield after-tax		3.4	%		3.6	%

· 1 percent growth in first-quarter 2011 in both pretax and after-tax investment income. 8 percent growth in pretax dividend income more than offset a 1 percent decline in pretax interest income.

· $129 million or 10 percent first-quarter 2011 increase in pre-tax unrealized investment portfolio gains, including $122 million for the equity portfolio. $35 million of realized gains from sales were harvested from the equity portfolio.

(Dollars in millions except share data)	At March 31,			At December 31,
	2011			2010
Balance sheet data
Invested assets	$	11,704		$	11,508
Total assets		15,369			15,095
Short-term debt		49			49
Long-term debt		790			790
Shareholders' equity		5,118			5,032
Book value per share		31.40			30.91
Debt-to-total-capital ratio		14.1	%		14.3	%
	Three months ended March 31,
	2011			2010
Performance measure
Value creation ratio		2.9	%		3.4	%

· $12.083 billion in consolidated cash and invested assets at March 31, 2011, up 2 percent from $11.893 billion at year-end.

· $8.536 billion bond portfolio at March 31, 2011, with an average rating of A2/A and with a 2 percent rise in fair value during the first quarter of 2011.

· $3.100 billion equity portfolio was 26.5 percent of invested assets, including $877 million in pre-tax net unrealized gains at March 31, 2011. 2 percent first-quarter 2011 growth in fair value.

· $3.833 billion of statutory surplus for the property casualty insurance group at March 31, 2011, up $56 million from $3.777 billion at year-end 2010, after declaring $60 million in dividends to the parent company. Ratio of net written premiums to property casualty statutory surplus for the 12 months ended March 31, 2011, of 0.8-to-1, unchanged from the 12 months ended December 31, 2010.

· Value creation ratio of 2.9 percent for the first quarter of 2011 is the sum of 1.3 percent from shareholder dividends plus 1.6 percent from growth in book value per share.

CINF 1Q11 Earnings Release 7

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

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

Safe Harbor Statement

This is our “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995. Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by the forward-looking statements in this report. Some of those risks and uncertainties are discussed in our 2010 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 24.

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 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 Increase our provision for federal income taxes due to changes in tax law

o Increase our other expenses

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.

* * *

CINF 1Q11 Earnings Release 8

Cincinnati Financial Corporation

Consolidated Balance Sheets (unaudited)
(In millions except per share data)	March 31,			December 31,
	2011			2010
ASSETS
Investments
Fixed maturities, at fair value (amortized cost: 2011—$8,033; 2010—$7,888)	$	8,536		$	8,383
Equity securities, at fair value (cost: 2011—$2,223; 2010—$2,286)		3,100			3,041
Other invested assets		68			84
Total investments		11,704			11,508
Cash and cash equivalents		379			385
Investment income receivable		117			119
Finance receivable		76			73
Premiums receivable		1,062			1,015
Reinsurance receivable		573			572
Prepaid reinsurance premiums		16			18
Deferred policy acquisition costs		503			488
Land, building and equipment, net, for company use (accumulated depreciation: 2011—$368; 2010—$352)		243			229
Other assets		66			67
Separate accounts		630			621
Total assets	$	15,369		$	15,095
LIABILITIES
Insurance reserves
Loss and loss expense reserves	$	4,239		$	4,200
Life policy reserves		2,106			2,034
Unearned premiums		1,586			1,553
Other liabilities		555			556
Deferred income tax		296			260
Note payable		49			49
Long-term debt		790			790
Separate accounts		630			621
Total liabilities		10,251			10,063
SHAREHOLDERS' EQUITY
Common stock, par value—$2 per share; (authorized: 2011 and 2010—500 million shares; issued: 2011 and 2010—196 million shares)		393			393
Paid-in capital		1,090			1,091
Retained earnings		3,977			3,980
Accumulated other comprehensive income		855			769
Treasury stock at cost (2011—33 million shares and 2010—34 million shares)		(1,197	)		(1,201	)
Total shareholders' equity		5,118			5,032
Total liabilities and shareholders' equity	$	15,369		$	15,095

CINF 1Q11 Earnings Release 9

Cincinnati Financial Corporation

Consolidated Statements of Income (unaudited)
(Dollars in millions except per share data)	Three months ended March 31,
	2011		2010
Revenues
Earned premiums	$	782	$	746
Investment income, net of expenses		131		130
Realized investment gains and losses		12		8
Fee revenues		1		1
Other revenues		3		2
Total revenues		929		887
Benefits and Expenses
Insurance losses and policyholder benefits		575		516
Underwriting, acquisition and insurance expenses		261		268
Other operating expenses		4		4
Interest expense		13		14
Total benefits and expenses		853		802
Income Before Income Taxes		76		85
Provision for Income Taxes		14		17
Net Income	$	62	$	68
Per Common Share:
Net income —basic	$	0.38	$	0.42
Net income —diluted	$	0.38	$	0.42

CINF 1Q11 Earnings Release 10

Definitions of Non-GAAP Information and

Reconciliation to Comparable GAAP Measures

(See attached tables for 2011 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 March 31,
	2011			2010
Value creation ratio
End of period book value	$	31.40		$	29.86
Less beginning of period book value		30.91			29.25
Change in book value		0.49			0.61
Dividend declared to shareholders		0.40			0.395
Total contribution to value creation ratio	$	0.89		$	1.005
Contribution to value creation ratio from change in book value*		1.6	%		2.1	%
Contribution to value creation ratio from dividends declared to shareholders**		1.3			1.3
Value creation ratio		2.9	%		3.4	%

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

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

CINF 1Q11 Earnings Release 11

Cincinnati Financial Corporation

Net Income Reconciliation
(In millions except per share data)	Three months ended
	March 31, 2011
Net income	$	62
Net realized investment gains and losses		7
Operating income		55
Less catastrophe losses		(27	)
Operating income before catastrophe losses	$	82
Diluted per share data:
Net income	$	0.38
Net realized investment gains and losses		0.05
Operating income		0.33
Less catastrophe losses		(0.16	)
Operating income before catastrophe losses	$	0.49

Property Casualty Reconciliation
	Three months ended March 31, 2011
	Consolidated			Commercial			Personal			E&S
Premiums:
Written premiums	$	779		$	588		$	173		$	18
Unearned premiums change		(34	)		(48	)		17			(3	)
Earned premiums	$	745		$	540		$	190		$	15
Statutory ratio:
Statutory combined ratio		103.3	%		102.1	%		104.4	%		130.4	%
Contribution from catastrophe losses		5.5			4.9			7.4			2.8
Statutory combined ratio excluding catastrophe losses		97.8	%		97.2	%		97.0	%		127.6	%
Commission expense ratio		18.4	%		18.5	%		17.9	%		22.2	%
Other expense ratio		13.8			14.4			12.4			5.4
Statutory expense ratio		32.2	%		32.9	%		30.3	%		27.6	%
GAAP ratio:
GAAP combined ratio		103.9	%		104.0	%		101.4	%		133.0	%
Contribution from catastrophe losses		5.5			4.9			7.4			2.8
Prior accident years before catastrophe losses		(7.7	)		(10.2	)		(1.2	)		1.1
GAAP combined ratio excluding catastrophe losses and prior years reserve development		106.1	%		109.3	%		95.2	%		129.1	%

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

CINF 1Q11 Earnings Release 12

EX-99.2

Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending March 31, 2011

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

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

Ratings are as of April 27, 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 with our periodic filings with the U.S. Securities and Exchange Commission. The results of operations for interim periods may not be indicative of results to be expected for the full year.

Cincinnati Financial Corporation

Supplemental Financial Data

First Quarter 2011

	Page
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3
Consolidated
Quick Reference	4
CFC and Subsidiaries Consolidation – Three Months Ended March 31, 2011	5
CFC Insurance Subsidiaries – Selected Balance Sheet Data	6
Investments	7
Consolidated Property Casualty Insurance Operations
Statutory Statements of Income	8
Consolidated Cincinnati Insurance Companies – Losses Incurred Detail	9
Consolidated Cincinnati Insurance Companies – Loss Ratio Detail	10
Consolidated Cincinnati Insurance Companies – Loss Claim Count Detail	11
Direct Written Premiums by Line of Business and State	12
Quarterly Property Casualty Data – Commercial Lines of Business	13
Quarterly Property Casualty Data – Personal Lines of Business	14
Loss and Loss Expense Analysis	15
Loss and Loss Expense Reserves	16
Reconciliation Data
Quarterly Property Casualty Data – Consolidated	17
Quarterly Property Casualty Data – Commercial Lines	18
Quarterly Property Casualty Data – Personal Lines	19
Quarterly Property Casualty Data – Excess & Surplus Lines	20
Life Insurance Operations
Statutory Statements of Income	21

Definitions of Non-GAAP Information and

Reconciliation to Comparable GAAP Measures

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

Management uses certain non-GAAP and non-statutory financial measures to evaluate its primary business areas – property casualty insurance, life insurance and investments. Management uses these measures when analyzing both GAAP and non-GAAP measures 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 - First Quarter 2011

(all data shown is for the three months ended or as of March 31, 2011)

	3/31/2011		Year over year change %
Revenues:
Commercial lines net written premiums	$	588		0
Personal lines net written premiums		173		12
Excess & surplus lines net written premiums		18		38
Property casualty net written premiums		779		3
Life and accident and health net written premiums		43		6
Annuity net written premiums		60		(7	)
Life, annuity and accident and health net written premiums		103		(2	)
Commercial lines net earned premiums		540		3
Personal lines net earned premiums		190		9
Excess & surplus lines net earned premiums		15		36
Property casualty net earned premiums		745		5
Fee revenue		1		0
Life and accident and health net earned premiums		37		(5	)
Investment income		131		1
Realized gains on investments		12		50
Other revenue		3		50
Total revenues		929		5
Income:
Operating income	$	55		(13	)
Net realized investment gains and losses		7		40
Net income		62		(9	)
Per share (diluted):
Operating income	$	0.33		(15	)
Net realized investment gains and losses		0.05		67
Net income		0.38		(10	)
Book value		31.40		5
Weighted average shares – diluted		163,669,998	nm

	3/31/2011			Year over year change %
Benefits and expenses:
Commercial lines loss and loss expenses	$	374			6
Personal lines loss and loss expenses		141			26
Excess & surplus lines loss and loss expenses		15			50
Life and accident and health losses and policy benefits		45			7
Underwriting, acquisition and insurance expenses		261			(3	)
Other operating expenses		4			25
Interest expenses		13			(7	)
Total benefits & expenses		853			6
Income before income taxes		76			(11	)
Total income tax		14			(18	)
Balance Sheet:
Fixed maturity investments	$	8,536
Equity securities		3,100
Other invested assets		68
Total invested assets	$	11,704
Equity in net assets of subsidiaries	$	4,761
Loss and loss expense reserves	$	4,239
Total debt		839
Shareholders' equity		5,118
Key ratios:
Commercial lines GAAP combined ratio		104.0	%
Personal lines GAAP combined ratio		101.4
Excess & surplus lines GAAP combined ratio		133.0
Property casualty GAAP combined ratio		103.9
Commercial lines STAT combined ratio		102.1	%
Personal lines STAT combined ratio		104.4
Excess & surplus lines STAT combined ratio		130.4
Property casualty STAT combined ratio		103.3
Value creation ratio		2.9	%

4

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Three Months Ended March 31, 2011

(In millions)	CFC			CONSOL P&C			CLIC			CFC-I		ELIM			Total
Revenues:
Premiums earned:
Property casualty	$	-		$	785		$	-		$	-	$	-		$	785
Life		-			-			48			-		-			48
Accident health		-			-			2			-		-			2
Premiums ceded		-			(40	)		(13	)		-		-			(53	)
Total earned premium		-			745			37			-		-			782
Investment income		10			88			33			-		-			131
Realized gain (loss) on investments		3			38			(29	)		-		-			12
Fee revenue		-			1			-			-		-			1
Other revenue		4			-			1			2		(4	)		3
Total revenues	$	17		$	872		$	42		$	2	$	(4	)	$	929
Benefits & expenses:
Losses & policy benefits	$	-		$	543		$	53		$	-	$	-		$	596
Reinsurance recoveries		-			(13	)		(8	)		-		-			(21	)
Underwriting, acquisition and insurance expenses		-			245			16			-		-			261
Other operating expenses		7			-			-			1		(4	)		4
Interest expense		13			-			-			-		-			13
Total expenses	$	20		$	775		$	61		$	1	$	(4	)	$	853
Income (loss) before income taxes	$	(3	)	$	97		$	(19	)	$	1	$	-		$	76
Provision (benefit) for income taxes:
Current operating income	$	(3	)	$	13		$	10		$	-	$	-		$	20
Capital gains/losses		1			13			(9	)		-		-			5
Deferred		(1	)		(3	)		(7	)		-		-			(11	)
Total provision (benefit) for income taxes	$	(3	)	$	23		$	(6	)	$	-	$	-		$	14
Operating income (loss)	$	(2	)	$	49		$	7		$	1	$	-		$	55
Net income (loss) - current year	$	-		$	74		$	(13	)	$	1	$	-		$	62
Net income - prior year	$	2		$	59		$	7		$	-	$	-		$	68

*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 Insurance Subsidiaries

Selected Balance Sheet Data

(In millions)	12/31/2011		9/30/2011		6/30/2011		3/31/2011			12/31/2010			9/30/2010			6/30/2010			3/31/2010
Cincinnati Insurance Consolidated
Fixed maturities (fair value)	$	-	$	-	$	-	$	5,850		$	5,818		$	5,924		$	5,804		$	5,759
Equities (fair value)		-		-		-		2,203			2,175			1,928			1,862			2,013
Short-term investments (fair value)		-		-		-		-			-			-			-			-
Fixed maturities - pretax net unrealized gain (loss)		-		-		-		320			314			494			363			287
Equities - pretax net unrealized gain		-		-		-		670			604			476			457			635
Loss and loss expense reserves - STAT		-		-		-		3,788			3,756			3,799			3,781			3,689
Equity GAAP		-		-		-		4,721			4,656			4,652			4,429			4,506
Surplus - STAT		-		-		-		3,833			3,777			3,641			3,537			3,692
The Cincinnati Life Insurance Company
Fixed maturities (fair value)	$	-	$	-	$	-	$	2,449		$	2,315		$	1,867		$	1,859		$	2,055
Equities (fair value)		-		-		-		102			103			108			100			114
Short-term investments (fair value)		-		-		-		-			-			-			-			-
Fixed maturities - pretax net unrealized gain (loss)		-		-		-		149			148			215			154			110
Equities - pretax net unrealized gain (loss)		-		-		-		25			(4	)		1			(7	)		7
Equity - GAAP		-		-		-		756			748			775			729			700
Surplus - STAT		-		-		-		308			303			316			307			310
	12/31/2009		9/30/2009		6/30/2009		3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Cincinnati Insurance Consolidated
Fixed maturities (fair value)	$	5,663	$	5,521	$	5,521	$	5,169		$	4,309		$	4,183		$	4,304		$	4,351
Equities (fair value)		1,910		2,477		2,477		2,247			2,432			3,210			3,537			4,186
Short-term investments (fair value)		5		10		10		11			19			162			-			51
Fixed maturities - pretax net unrealized gain (loss)		202		301		301		25			(108	)		(132	)		(33	)		39
Equities - pretax net unrealized gain		592		590		590		487			627			1,016			1,187			1,831
Loss and loss expense reserves - STAT		3,639		3,656		3,656		3,674			3,494			3,507			3,534			3,448
Equity GAAP		4,405		4,283		4,283		3,795			3,667			3,947			4,011			4,498
Surplus - STAT		3,648		3,472		3,472		3,241			3,360			3,687			3,650			4,027
The Cincinnati Life Insurance Company
Fixed maturities (fair value)	$	1,927	$	1,868	$	1,868	$	1,694		$	1,467		$	1,483		$	1,551		$	1,534
Equities (fair value)		108		119		119		103			122			200			265			307
Short-term investments (fair value)		-		1		1		1			-			-			-			-
Fixed maturities - pretax net unrealized gain (loss)		72		67		67		(43	)		(115	)		(79	)		(35	)		-
Equities - pretax net unrealized gain		1		11		11		(8	)		(7	)		61			92			127
Equity - GAAP		666		653		653		563			471			530			617			661
Short-term investments (fair value)		300		283		283		270			290			371			420			453

6

Cincinnati Financial Corporation and Subsidiaries

Investments Results

(In millions)	Cost or		Gross unrealized				Fair
At March 31, 2011	amortized cost		gains		losses		value		OTTI in AOCI
Fixed maturities:
States, municipalities and political subdivisions	$	3,058	$	112	$	10	$	3,160	$	-
Convertibles and bonds with warrants attached		73		-		-		73		-
United States government		4		1		-		5		-
Government-sponsored enterprises		226		-		2		224		-
Foreign government		3		-		-		3		-
Corporate securities		4,669		408		6		5,071		-
Subtotal		8,033		521		18		8,536	$	-
Equity securities:
Common equities		2,149		858		11		2,996
Preferred equities		74		30		-		104
Subtotal		2,223		888		11		3,100	NA
Total	$	10,256	$	1,409	$	29	$	11,636
At December 31, 2010
Fixed maturities:
States, municipalities and political subdivisions	$	3,043	$	110	$	10	$	3,143	$	-
Convertibles and bonds with warrants attached		69		-		-		69		-
United States government		4		1		-		5		-
Government-sponsored enterprises		201		-		1		200		-
Foreign government		3		-		-		3		-
Short-term investments		-		-		-		-		-
Collateralized mortgage obligations		-		-		-		-		-
Corporate securities		4,568		404		9		4,963		-
Subtotal		7,888		515		20		8,383	$	-
Equity securities:
Common equities		2,211		757		28		2,940
Preferred equities		75		27		1		101
Subtotal		2,286		784		29		3,041	NA
Total	$	10,174	$	1,299	$	49	$	11,424

	At March 31,			At December 31,
	2011			2010
Weighted average yield-to-book value		5.4	%		5.5	%
Weighted average maturity	6.0		yrs	6.2		yrs
Effective duration	4.9		yrs	5.0		yrs

7

Consolidated Cincinnati Insurance Companies

Statutory Statements of Income

	For the Three Months Ended March 31,
(Dollars in millions)	2011			2010			Change			% Change
Underwriting income
Net premiums written	$	778		$	756		$	22			3
Unearned premiums increase		33			48			(15	)		(31	)
Earned premiums	$	745		$	708		$	37			5
Losses incurred	$	435		$	385		$	50			13
Allocated loss expenses incurred		45			43			2			5
Unallocated loss expenses incurred		50			47			3			6
Other underwriting expenses incurred		236			254			(18	)		(7	)
Workers compensation dividend incurred		14			3			11			367
Total underwriting deductions	$	780		$	732		$	48			7
Net underwriting losses	$	(35	)	$	(24	)	$	(11	)		(46	)
Investment income
Gross investment income earned	$	91		$	90		$	1			1
Net investment income earned		90			89			1			1
Net realized capital gains		22			2			20		nm
Net investment gains (excl. subs)	$	112		$	91		$	21			23
Dividend from subsidiary		-			-			-			-
Net investment gains (net of tax)	$	112		$	91		$	21			23
Other income	$	1		$	-		$	1		nm
Net income before federal income taxes	$	78		$	67		$	11			16
Federal and foreign income taxes incurred	$	13		$	17		$	(4	)		(24	)
Net income (statutory)	$	65		$	50		$	15			30

*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.

*Excludes CSU Producers Resources Inc.

8

Consolidated Cincinnati Insurance Companies

Losses Incurred Detail

(In millions)	Three months ended														Six months ended			Nine months ended			Twelve months ended
	12/31/11	9/30/11	6/30/11	3/31/11		12/31/10			9/30/10		6/30/10		3/31/10		6/30/11	6/30/10		9/30/11	9/30/10		12/31/11	12/31/10
Consolidated Loss Detail
New losses greater than $4,000,000				$	11	$	15		$	17	$	11	$	6		$	17		$	34		$	49
New losses $1,000,000-$4,000,000					50		43			36		29		35			64			100			142
New losses $250,000-$1,000,000					54		47			46		53		52			104			150			200
Case reserve development above $250,000					34		45			66		30		37			68			134			178
Large losses subtotal				$	149	$	150		$	165	$	123	$	130		$	253		$	418		$	569
IBNR incurred					32		18			16		11		12			23			41			59
Catastrophe losses incurred					41		5			28		100		15			114			143			148
Remaining incurred					213		184			228		239		228			468			694			876
Total losses incurred				$	435	$	357		$	437	$	473	$	385		$	858		$	1,296		$	1,652
Commercial Lines Loss Detail
New losses greater than $4,000,000				$	11	$	10		$	17	$	11	$	6		$	17		$	34		$	44
New losses $1,000,000-$4,000,000					40		38			28		22		32			54			82			120
New losses $250,000-$1,000,000					37		31			37		40		40			80			117			148
Case reserve development above $250,000					31		41			62		29		32			61			123			164
Large losses subtotal				$	119	$	120		$	144	$	102	$	110		$	212		$	356		$	476
IBNR incurred					24		19			10		7		9			17			27			45
Catastrophe losses incurred					26		5			17		57		10			66			84			89
Remaining incurred					131		97			141		152		152			304			444			542
Total losses incurred				$	300	$	241		$	312	$	318	$	281		$	599		$	911		$	1,152
Personal Lines Loss Detail
New losses greater than $4,000,000				$	-	$	5		$	-	$	-	$	-		$	-		$	-		$	5
New losses $1,000,000-$4,000,000					9		5			5		7		3			10			15			20
New losses $250,000-$1,000,000					14		14			7		10		10			20			27			41
Case reserve development above $250,000					3		3			4		1		3			4			8			11
Large losses subtotal				$	26	$	27		$	16	$	18	$	16		$	34		$	50		$	77
IBNR incurred					4		1			4		2		1			2			7			8
Catastrophe losses incurred					14		(1	)		11		43		5			48			59			58
Remaining incurred					80		86			84		83		75			159			243			328
Total losses incurred				$	124	$	113		$	115	$	146	$	97		$	243		$	359		$	471
Excess & Surplus Lines Loss Detail
New losses greater than $4,000,000				$	-	$	-		$	-	$	-	$	-		$	-		$	-		$	-
New losses $1,000,000-$4,000,000					1		-			3		-		-			-			3			3
New losses $250,000-$1,000,000					3		2			2		3		2			5			6			9
Case reserve development above $250,000					-		1			-		-		2			2			3			3
Large losses subtotal				$	4	$	3		$	5	$	3	$	4		$	7		$	12		$	15
IBNR incurred					4		(2	)		2		2		2			5			7			4
Catastrophe losses incurred					1		1			-		-		-			-			-			1
Remaining incurred					2		1			3		4		1			4			7			9
Total losses incurred				$	11	$	3		$	10	$	9	$	7		$	16		$	26		$	29

*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.

9

Cincinnati Insurance Companies

Loss Ratio Detail

	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/11	9/30/11	6/30/11	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10			6/30/11	6/30/10			9/30/11	9/30/10			12/31/11	12/31/10
Consolidated Loss Ratio
New losses greater than $4,000,000					1.4	%		2.0	%		2.3	%		1.5	%		0.8	%			1.2	%			1.6	%			1.7	%
New losses $1,000,000-$4,000,000					6.7			5.7			4.8			4.0			4.9				4.6				4.6				4.9
New losses $250,000-$1,000,000					7.3			6.7			6.2			7.2			7.4				7.2				6.9				6.8
Case reserve development above $250,000					4.6			5.9			8.9			4.2			5.3				4.7				6.2				6.1
Large losses subtotal					20.0	%		20.3	%		22.2	%		16.9	%		18.4	%			17.7	%			19.3	%			19.5	%
IBNR incurred					4.4			2.5			2.3			1.6			1.7				1.6				1.8				2.0
Total catastrophe losses incurred					5.5			0.7			3.8			13.6			2.1				7.9				6.5				5.1
Remaining incurred					28.5			24.4			30.5			33.0			32.1				32.6				31.9				30.0
Total loss ratio					58.4	%		47.9	%		58.8	%		65.1	%		54.3	%			59.8	%			59.5	%			56.6	%
Commercial Lines Loss Ratio
New losses greater than $4,000,000					1.9	%		1.8	%		3.1	%		2.0	%		1.1	%			1.6	%			2.1	%			2.0	%
New losses $1,000,000-$4,000,000					7.5			7.0			5.1			4.1			6.1				5.1				5.1				5.6
New losses $250,000-$1,000,000					6.9			5.8			6.7			7.4			7.7				7.5				7.3				6.9
Case reserve development above $250,000					5.7			7.4			11.4			5.4			6.2				5.8				7.7				7.6
Large losses subtotal					22.0	%		22.0	%		26.3	%		18.9	%		21.1	%			20.0	%			22.2	%			22.1	%
IBNR incurred					4.4			3.3			1.9			1.3			1.8				1.6				1.7				2.1
Total catastrophe losses incurred					4.9			1.0			3.2			10.5			1.8				6.2				5.2				4.1
Remaining incurred					24.2			17.8			25.7			28.3			29.0				28.6				27.6				25.2
Total loss ratio					55.5	%		44.1	%		57.1	%		59.0	%		53.7	%			56.4	%			56.7	%			53.5	%
Personal Lines Loss Ratio
New losses greater than $4,000,000					0.0	%		2.7	%		0.0	%		0.0	%		0.0	%			0.0	%			0.0	%			0.7	%
New losses $1,000,000-$4,000,000					4.8			2.3			2.8			4.4			1.5				3.0				2.9				2.8
New losses $250,000-$1,000,000					7.1			7.8			4.0			5.6			5.5				5.6				5.0				5.7
Case reserve development above $250,000					1.7			1.8			2.0			0.6			1.9				1.2				1.5				1.6
Large losses subtotal					13.6	%		14.6	%		8.8	%		10.6	%		8.9	%			9.8	%			9.4	%			10.8	%
IBNR incurred					2.3			0.8			2.4			0.9			0.3				0.6				1.2				1.1
Total catastrophe losses incurred					7.4			(0.3	)		6.0			23.8			3.0				13.5				11.0				8.1
Remaining incurred					41.6			45.3			46.0			47.1			43.1				45.1				45.4				45.4
Total loss ratio					64.9	%		60.4	%		63.2	%		82.4	%		55.3	%			69.0	%			67.0	%			65.4	%
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	%
New losses $1,000,000-$4,000,000					0.0			0.0			19.4			0.0			0.0				0.0				7.1				5.1
New losses $250,000-$1,000,000					25.8			17.5			16.7			18.8			16.9				19.9				18.7				18.4
Case reserve development above $250,000					2.7			1.8			2.5			2.7			20.7				11.6				13.1				14.2
Large losses subtotal					28.5	%		19.3	%		38.6	%		21.5	%		37.6	%			31.5	%			38.9	%			37.7	%
IBNR incurred					26.1			(13.2	)		14.9			23.5			18.4				23.7				18.5				9.6
Total catastrophe losses incurred					2.8			(0.1	)		4.6			0.0			0.0				0.0				1.7				1.2
Remaining incurred					20.2			14.7			14.2			32.5			9.4				18.3				18.8				17.4
Total loss ratio					77.6	%		20.7	%		72.3	%		77.5	%		65.4	%			73.5	%			77.9	%			65.9	%

*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.

10

Cincinnati Insurance Companies

Loss Claim Count Detail

	Three months ended													Six months ended			Nine months ended			Twelve months ended
	12/31/11	9/30/11	6/30/11	3/31/11		12/31/10		9/30/10		6/30/10		3/31/10		6/30/11	6/30/10		9/30/11	9/30/10		12/31/11	12/31/10
Consolidated Loss Claim Count
New losses greater than $4,000,000					2		3		3		2		1			3			6			9
New losses $1,000,000-$4,000,000					30		23		20		18		19			37			57			80
New losses $250,000-$1,000,000					122		123		112		117		123			240			352			475
Case reserve development above $250,000					68		71		101		73		77			143			237			308
Large losses total					222		220		236		210		220			423			652			872
Commercial Lines Loss Claim Count
New losses greater than $4,000,000					2		2		3		2		1			3			6			8
New losses $1,000,000-$4,000,000					24		20		15		12		17			29			44			64
New losses $250,000-$1,000,000					85		79		88		88		95			183			271			350
Case reserve development above $250,000					59		70		93		70		67			137			230			300
Large losses total					170		171		199		172		180			352			551			722
Personal Lines Loss Claim Count
New losses greater than $4,000,000					-		1		-		-		-			-			-			1
New losses $1,000,000-$4,000,000					6		3		3		6		2			8			11			14
New losses $250,000-$1,000,000					29		38		19		24		24			48			67			105
Case reserve development above $250,000					8		-		7		2		5			7			14			23
Large losses total					43		42		29		32		31			63			92			143
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					8		6		5		5		4			9			14			20
Case reserve development above $250,000					1		1		1		1		5			6			7			8
Large losses total					9		7		8		6		9			15			23			30

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.

11

Consolidated Cincinnati Insurance Companies

Agency Direct Written Premiums by Agency State by Line of Business for the Three Months Ended March 31, 2011

(Dollars in millions)	Commercial Lines														Personal Lines								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		2011 Total		2010 Total		Change  %			Change %			Change %			Change %
OH	$	33.2	$	22.4	$	15.0	$	-	$	5.0	$	5.9	$	1.4	$	25.8	$	19.0	$	7.2	$	2.3	$	136.9	$	138.7		(5.1	)		4.1			40.5			(1.3	)
IL		15.7		10.6		8.4		14.3		2.8		1.8		0.7		6.3		4.7		1.7		1.2		68.0		68.9		(3.5	)		9.8			3.2			(1.1	)
IN		13.2		10.0		6.8		7.8		2.0		1.4		0.7		6.5		6.1		1.6		1.6		57.8		52.8		8.2			11.1			29.8			9.4
PA		13.2		8.2		8.3		14.0		2.5		1.6		0.6		1.8		1.4		0.9		0.8		53.4		52.2		1.1			10.9			36.2			2.2
GA		6.5		5.3		4.7		3.3		1.9		1.5		0.3		7.8		7.2		2.2		1.0		41.6		41.4		(5.4	)		7.9			40.6			0.5
NC		7.9		6.6		5.4		5.2		3.8		1.7		0.4		3.5		2.5		1.2		0.5		38.9		35.7		1.8			52.1			47.5			8.9
MI		8.0		5.6		3.8		4.3		2.5		1.5		0.4		3.6		3.2		0.8		0.7		34.2		32.4		1.0			20.2			59.3			5.5
VA		7.6		6.2		5.1		5.1		1.3		1.4		0.3		2.1		1.7		0.6		0.6		32.1		35.4		(11.4	)		0.5			40.2			(9.3	)
KY		5.8		6.0		3.9		1.0		1.7		0.7		0.3		5.4		4.1		1.2		0.8		30.8		28.5		6.5			9.8			35.5			8.3
WI		6.9		4.3		3.0		8.3		1.0		0.9		0.4		1.8		1.7		0.7		0.3		29.4		30.7		(6.0	)		5.6			55.5			(4.1	)
TN		6.5		5.2		3.7		2.8		2.6		1.3		0.4		2.6		2.7		0.9		0.2		28.8		28.7		(3.0	)		15.4			(30.5	)		0.1
AL		4.3		5.4		2.2		0.2		2.3		0.7		0.3		3.8		5.9		1.4		0.6		27.0		24.2		11.6			9.0			94.5			11.7
FL		5.9		5.8		2.2		0.4		0.5		0.6		0.2		2.2		3.0		0.6		0.6		22.1		22.8		(2.8	)		(8.3	)		90.2			(3.1	)
IA		5.4		3.7		2.4		5.6		1.0		0.8		0.2		0.9		0.9		0.4		0.4		21.6		22.3		(4.9	)		16.6			0.7			(3.1	)
MN		5.6		4.2		2.5		2.2		1.0		0.6		0.4		1.8		1.7		0.5		0.5		20.9		21.3		(3.9	)		6.1			4.2			(2.0	)
MO		4.6		4.5		3.1		2.5		1.6		0.4		0.3		0.9		1.2		0.3		1.1		20.7		21.1		(7.0	)		17.0			101.0			(1.8	)
NY		6.7		2.3		2.6		0.7		0.4		0.4		0.2		-		-		-		0.2		13.5		14.6		(7.7	)		(8.8	)		38.9			(7.3	)
MD		3.5		1.8		3.1		2.2		0.4		0.4		0.1		0.3		0.5		0.1		0.3		12.8		12.1		3.9			26.9			21.8			5.6
KS		2.3		2.4		1.4		2.5		0.8		0.3		0.1		1.0		1.2		0.3		0.2		12.5		12.5		(2.8	)		5.9			110.3			(0.4	)
AR		2.0		2.9		1.7		1.0		1.3		0.3		0.2		0.8		0.9		0.3		0.4		11.7		11.2		(0.2	)		21.5			72.3			4.5
TX		3.7		3.0		2.5		0.5		0.1		0.2		0.2		-		-		-		1.3		11.6		6.8		66.1			21.0			110.9			70.1
AZ		2.6		1.9		1.8		0.6		0.2		0.3		0.2		0.4		0.4		0.1		0.3		8.8		8.7		(3.1	)		34.5			16.4			0.5
SC		2.2		1.8		1.4		0.8		0.5		0.5		0.1		0.5		0.3		0.2		0.2		8.5		9.4		(16.1	)		93.0			(20.3	)		(10.0	)
MT		3.2		1.4		1.8		-		0.3		0.2		0.1		0.4		0.3		0.1		0.1		7.9		7.7		(0.6	)		42.0			(3.7	)		2.4
NE		1.8		1.6		1.0		1.5		0.4		0.5		0.1		0.2		0.2		0.1		0.4		7.8		7.9		(3.8	)		8.5			113.6			(0.4	)
UT		2.3		1.3		1.5		-		0.1		0.4		0.1		1.0		0.4		0.1		0.3		7.6		7.0		(0.4	)		83.5			(16.3	)		9.1
ID		2.1		1.4		1.6		0.1		0.3		0.3		0.1		0.4		0.2		0.1		0.1		6.4		5.5		13.0			85.6			12.9			17.4
WV		1.5		1.2		1.2		0.4		0.6		0.2		0.1		-		0.1		0.1		0.4		5.6		5.4		3.2			3.2			25.6			4.5
VT		1.0		0.8		0.6		2.0		0.3		0.3		-		0.2		0.3		0.1		0.1		5.6		5.4		(0.4	)		70.3			29.6			4.3
ND		1.9		1.0		0.8		-		0.2		0.2		0.1		0.1		0.1		-		-		4.6		4.0		11.8			24.8			144.3			13.2
NH		0.8		0.6		0.3		0.9		0.2		0.4		-		0.2		0.2		0.1		0.2		3.8		3.4		7.6			36.2			21.5			11.2
CO		1.0		1.0		0.9		0.1		-		0.3		0.1		-		-		-		0.2		3.6		2.3		53.5			6.2			99.6			54.6
SD		0.7		0.6		0.4		1.0		0.1		0.1		-		-		-		-		0.1		3.1		2.6		16.7			103.1			391.2			18.9
WA		0.8		0.5		0.8		-		-		0.2		0.1		-		-		-		0.1		2.5		1.5		67.0		nm				119.8			69.2
NM		0.8		0.4		0.5		0.2		-		0.3		-		-		-		-		0.1		2.3		1.9		19.5		nm				(16.0	)		17.6
DE		0.5		0.5		0.4		0.4		0.1		0.1		-		-		-		-		-		1.9		2.3		(15.2	)		11.0		nm				(15.1	)
OR		0.3		0.1		0.2		-		-		0.0		-		-		-		-		-		0.7		-		499.6		nm			nm				536.7
WY		0.2		0.1		0.1		-		-		-		-		-		-		-		0.1		0.5		0.1		349.1			4.4			nm			354.7
CT		0.1		0.1		0.1		-		-		-		-		-		-		-		-		0.4		-		336.8			17.8		nm				337.7
All Other		0.5		0.6		0.5		0.9		-		0.4		-		-		-		-		-		3.2		3.6		(13.6	)		170.6		nm				(8.6	)
Total	$	192.8	$	143.0	$	107.8	$	92.8	$	39.7	$	29.1	$	9.3	$	82.3	$	72.0	$	23.7	$	18.7	$	811.3	$	793.3		(0.6	)		10.1			41.3			2.3
Other Direct		-		0.3		-		1.0		-		-		-		-		-		-		-		1.3		0.9		13.7			(155.9	)	nm				46.2
Total Direct	$	192.8	$	143.3	$	107.8	$	93.8	$	39.7	$	29.1	$	9.3	$	82.3	$	72.0	$	23.7	$	18.7	$	812.6	$	794.2		(0.6	)		10.3			41.3			2.3

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.

12

Quarterly Property Casualty Data - Commercial Lines

				Three months ended															Six months ended				Nine months ended				Twelve months ended
(Dollars in millions)	12/31/11	9/30/11	6/30/11	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10			6/30/11	6/30/10			9/30/11	9/30/10			12/31/11	12/31/10
Commercial casualty:
Written premiums				$	189		$	166		$	161		$	168		$	191			$	359			$	520			$	686
Earned premiums					172			175			182			172			164				336				518				693
Loss and loss expenses incurred					80			87			104			82			96				178				282				369
Loss and loss expenses ratio					46.5	%		49.6	%		56.5	%		48.3	%		58.3	%			53.2	%			54.4	%			53.2	%
Contribution from catastrophe losses					-			-			-			-			-				-				-				-
Contribution from prior period reserve development					(32.3	)		(50.5	)		(18.5	)		(25.3	)		(12.7	)			(19.2	)			(18.9	)			(26.9	)
Loss and loss expenses before catastrophe losses and prior period reserve development					78.8	%		100.1	%		75.0	%		73.6	%		71.0	%			72.4	%			73.3	%			80.1	%
Commercial property:
Written premiums				$	132		$	126		$	122		$	124		$	129			$	253			$	375			$	497
Earned premiums					126			124			123			121			121				242				365				489
Loss and loss expenses incurred					115			69			87			109			86				195				282				351
Loss and loss expenses ratio					91.4	%		55.7	%		70.8	%		90.1	%		71.0	%			80.5	%			77.3	%			71.8	%
Contribution from catastrophe losses					18.6			2.3			9.0			36.7			8.3				22.5				18.0				14.0
Contribution from prior period reserve development					11.4			(0.9	)		-			(5.5	)		(1.8	)			(3.7	)			(2.4	)			(2.0	)
Loss and loss expenses before catastrophe losses and prior period reserve development					61.4	%		54.3	%		61.8	%		58.9	%		64.5	%			61.7	%			61.7	%			59.8	%
Commercial auto:
Written premiums				$	107		$	92		$	91		$	99		$	103			$	202			$	293			$	385
Earned premiums					96			97			96			96			95				191				287				384
Loss and loss expenses incurred					50			53			59			70			58				128				187				240
Loss and loss expenses ratio					52.2	%		55.1	%		61.3	%		72.9	%		61.0	%			67.0	%			65.1	%			62.6	%
Contribution from catastrophe losses					(0.1	)		0.4			(0.5	)		4.2			(1.0	)			1.6				0.9				0.8
Contribution from prior period reserve development					(24.6	)		(20.8	)		(5.3	)		(1.0	)		(7.1	)			(4.0	)			(4.4	)			(8.5	)
Loss and loss expenses before catastrophe losses and prior period reserve development					76.9	%		75.5	%		67.1	%		69.7	%		69.1	%			69.4	%			68.6	%			70.3	%
Workers' compensation:
Written premiums				$	90		$	75		$	68		$	72		$	95			$	167			$	235			$	310
Earned premiums					76			81			77			79			74				153				230				311
Loss and loss expenses incurred					70			67			86			72			67				139				225				292
Loss and loss expenses ratio					91.5	%		82.8	%		112.2	%		89.9	%		91.4	%			90.6	%			97.8	%			93.9	%
Contribution from catastrophe losses					-			-			-			-			-				-				-				-
Contribution from prior period reserve development					(4.1	)		(9.8	)		(15.3	)		(13.3	)		(11.9	)			(12.6	)			(13.5	)			(12.6	)
Loss and loss expenses before catastrophe losses and prior period reserve development					95.6	%		92.6	%		127.5	%		103.2	%		103.3	%			103.2	%			111.3	%			106.5	%
Specialty package:
Written premiums				$	37		$	37		$	37		$	36		$	39			$	75			$	112			$	149
Earned premiums					37			37			38			37			37				74				112				149
Loss and loss expenses incurred					32			13			33			32			33				65				98				111
Loss and loss expenses ratio					85.5	%		34.9	%		89.1	%		85.6	%		89.0	%			87.3	%			87.9	%			74.8	%
Contribution from catastrophe losses					7.7			6.9			18.7			20.2			1.1				10.8				13.4				11.9
Contribution from prior period reserve development					13.6			(19.4	)		9.4			(3.5	)		10.0				3.2				5.3				(0.8	)
Loss and loss expenses before catastrophe losses and prior period reserve development					64.2	%		47.4	%		61.0	%		68.9	%		77.9	%			73.3	%			69.2	%			63.7	%
Surety and executive risk:
Written premiums				$	24		$	23		$	23		$	24		$	23			$	47			$	70			$	93
Earned premiums					25			28			22			25			24				49				71				95
Loss and loss expenses incurred					24			29			17			8			13				21				38				67
Loss and loss expenses ratio					96.1	%		119.5	%		73.9	%		36.2	%		51.1	%			43.6	%			53.2	%			69.9	%
Contribution from catastrophe losses					-			-			-			-			-				-				-				-
Contribution from prior period reserve development					41.4			43.8			(17.3	)		(17.7	)		4.0				(6.9	)			(10.2	)			3.4
Loss and loss expenses before catastrophe losses and prior period reserve development					54.7	%		75.7	%		91.2	%		53.9	%		47.1	%			50.5	%			63.4	%			66.5	%
Machinery and equipment:
Written premiums				$	9		$	9		$	9		$	9		$	8			$	17			$	26			$	35
Earned premiums					8			8			9			8			8				16				25				33
Loss and loss expenses incurred					3			1			1			5			-				5				6				7
Loss and loss expense ratio					36.9	%		17.7	%		11.9	%		51.9	%		6.1	%			29.3	%			23.4	%			21.9	%
Contribution from catastrophe losses					0.2			(0.3	)		(1.7	)		1.8			(1.0	)			0.4				(0.3	)			(0.3	)
Contribution from prior period reserve development					8.5			(3.3	)		(6.8	)		1.9			(17.2	)			(7.5	)			(7.3	)			(6.3	)
Loss and loss expenses before catastrophe losses and prior period reserve development					28.2	%		21.3	%		20.4	%		48.2	%		24.3	%			36.4	%			31.0	%			28.5	%

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

13

Quarterly Property Casualty Data - Personal Lines

				Three months ended															Six months ended				Nine months ended				Twelve months ended
(Dollars in millions)	12/31/11	9/30/11	6/30/11	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10			6/30/11	6/30/10			9/30/11	9/30/10			12/31/11	12/31/10
Personal auto:
Written premiums				$	82		$	84		$	98		$	97		$	73			$	170			$	268			$	352
Earned premiums					89			87			86			83			81				164				250				337
Loss and loss expenses incurred					57			68			59			61			47				108				167				235
Loss and loss expenses ratio					63.8	%		78.6	%		68.1	%		73.6	%		58.2	%			66.0	%			66.7	%			69.8	%
Contribution from catastrophe losses					0.9			(0.1	)		0.1			4.0			(0.1	)			2.0				1.3				1.0
Contribution from prior period reserve development					(5.7	)		(2.5	)		(0.4	)		(1.4	)		(4.7	)			(3.0	)			(2.1	)			(2.2	)
Loss and loss expenses before catastrophe losses and prior period reserve development					68.6	%		81.2	%		68.4	%		71.0	%		63.0	%			67.0	%			67.5	%			71.0	%
Homeowner:
Written premiums				$	68		$	75		$	83		$	81		$	60			$	141			$	224			$	299
Earned premiums					76			75			72			72			70				142				214				289
Loss and loss expenses incurred					69			55			61			89			53				142				203				258
Loss and loss expenses ratio					90.3	%		72.1	%		84.5	%		123.8	%		76.0	%			100.2	%			94.9	%			89.0	%
Contribution from catastrophe losses					16.3			(0.9	)		13.4			52.8			6.9				30.1				24.5				17.9
Contribution from prior period reserve development					(3.2	)		(6.9	)		(3.0	)		(0.6	)		1.6				0.5				(0.7	)			(2.3	)
Loss and loss expenses before catastrophe losses and prior period reserve development					77.2	%		79.9	%		74.1	%		71.6	%		67.5	%			69.6	%			71.1	%			73.4	%
Other personal:
Written premiums				$	23		$	28		$	27		$	26		$	22			$	48			$	75			$	99
Earned premiums					25			24			24			24			23				47				71				95
Loss and loss expenses incurred					15			7			12			13			12				25				37				44
Loss and loss expenses ratio					61.2	%		32.1	%		50.3	%		53.0	%		51.5	%			52.3	%			51.6	%			46.6	%
Contribution from catastrophe losses					3.0			0.9			4.3			5.3			2.8				4.1				4.2				3.3
Contribution from prior period reserve development					1.5			(30.1	)		(24.5	)		(22.0	)		(7.8	)			(14.9	)			(18.2	)			(21.3	)
Loss and loss expenses before catastrophe losses and prior period reserve development					56.7	%		61.3	%		70.5	%		69.7	%		56.5	%			63.1	%			65.6	%			64.6	%

*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.

14

Cincinnati Insurance Companies Consolidated

Loss and Loss Expense Analysis

													Change in
(In millions)	Paid losses		Paid loss expense		Total paid		Change in case reserves			Change in IBNR reserves			loss  expense reserves			Total reserves			Case incurred			IBNR incurred			Loss   expense incurred		Total incurred
Gross loss and loss expense incurred at March 31, 2011
Commercial casualty	$	67	$	29	$	96	$	(28	)	$	18		$	-		$	(10	)	$	39		$	18		$	29	$	86
Commercial property		77		11		88		14			16			2			32			91			16			13		120
Commercial auto		64		10		74		(18	)		(4	)		(2	)		(24	)		46			(4	)		8		50
Workers' compensation		53		11		64		8			-			-			8			61			-			11		72
Specialty packages		24		5		29		2			1			-			3			26			1			5		32
Surety and executive risk		13		3		16		(3	)		5			5			7			10			5			8		23
Machinery and equipment		2		-		2		1			-			-			1			3			-			-		3
Total commercial lines		300		69		369		(24	)		36			5			17			276			36			74		386
Personal auto		53		8		61		(4	)		(1	)		1			(4	)		49			(1	)		9		57
Homeowners		47		7		54		8			6			1			15			55			6			8		69
Other personal		9		1		10		2			3			-			5			11			3			1		15
Total personal lines		109		16		125		6			8			2			16			115			8			18		141
Commercial casualty & property		4		1		5		3			4			3			10			7			4			4		15
Total excess & surplus lines		4		1		5		3			4			3			10			7			4			4		15
Total property casualty	$	413	$	86	$	499	$	(15	)	$	48		$	9		$	43		$	398		$	48		$	96	$	542
Ceded loss and loss expense incurred at March 31, 2011
Commercial casualty	$	1	$	-	$	1	$	4		$	1		$	-		$	5		$	5		$	1		$	-	$	6
Commercial property		3		-		3		2			-			-			2			5			-			-		5
Commercial auto		-		-		-		-			-			-			-			-			-			-		-
Workers' compensation		2		-		2		-			-			-			-			2			-			-		2
Specialty packages		-		-		-		-			-			-			-			-			-			-		-
Surety and executive risk		4		-		4		(5	)		-			-			(5	)		(1	)		-			-		(1	)
Machinery and equipment		-		-		-		-			-			-			-			-			-			-		-
Total commercial lines		10		-		10		1			1			-			2			11			1			-		12
Personal auto		-		-		-		-			-			-			-			-			-			-		-
Homeowners		-		-		-		-			-			-			-			-			-			-		-
Other personal		-		-		-		-			-			-			-			-			-			-		-
Total personal lines		-		-		-		-			-			-			-			-			-			-		-
Commercial casualty & property		-		-		-		-			-			-			-			-			-			-		-
Total excess & surplus lines		-		-		-		-			-			-			-			-			-			-		-
Total property casualty	$	10	$	-	$	10	$	1		$	1		$	-		$	2		$	11		$	1		$	-	$	12
Net loss and loss expense incurred at March 31, 2011
Commercial casualty	$	66	$	29	$	95	$	(32	)	$	17		$	-		$	(15	)	$	34		$	17		$	29	$	80
Commercial property		74		11		85		12			16			2			30			86			16			13		115
Commercial auto		64		10		74		(18	)		(4	)		(2	)		(24	)		46			(4	)		8		50
Workers' compensation		51		11		62		8			-			-			8			59			-			11		70
Specialty packages		24		5		29		2			1			-			3			26			1			5		32
Surety and executive risk		9		3		12		2			5			5			12			11			5			8		24
Machinery and equipment		2		-		2		1			-			-			1			3			-			-		3
Total commercial lines		290		69		359		(25	)		35			5			15			265			35			74		374
Personal auto		53		8		61		(4	)		(1	)		1			(4	)		49			(1	)		9		57
Homeowners		47		7		54		8			6			1			15			55			6			8		69
Other personal		9		1		10		2			3			-			5			11			3			1		15
Total personal lines		109		16		125		6			8			2			16			115			8			18		141
Commercial casualty & property		4		1		5		3			4			3			10			7			4			4		15
Total excess & surplus lines		4		1		5		3			4			3			10			7			4			4		15
Total property casualty	$	403	$	86	$	489	$	(16	)	$	47		$	10		$	41		$	387		$	47		$	96	$	530

15

Cincinnati Insurance Companies Consolidated

Loss and Loss Expense Reserves

(In millions)	Loss reserves					Loss		Total
	Case		IBNR			expense		gross		Percent
At March 31,	reserves		reserves			reserves		reserves		of total
2011
Commercial casualty	$	938	$	339		$	532	$	1,809		48.3	%
Commercial property		143		28			35		206		5.5
Commercial auto		240		37			58		335		8.9
Workers' compensation		484		465			147		1,096		29.3
Specialty packages		82		3			11		96		2.6
Surety and executive risk		127		7			62		196		5.2
Machinery and equipment		2		3			1		6		0.2
Total	$	2,016	$	882		$	846	$	3,744		100.0	%
Personal auto	$	123	$	(2	)	$	28	$	149		40.5	%
Homeowner		81		27			18		126		34.1
Other personal		38		46			10		94		25.4
Total	$	242	$	71		$	56	$	369		100.0	%
Excess and surplus lines	$	31	$	15		$	20	$	66
At December 31,
2010
Commercial casualty	$	966	$	321		$	533	$	1,820		48.8	%
Commercial property		130		13			32		175		4.7
Commercial auto		258		41			60		359		9.6
Workers' compensation		476		465			147		1,088		29.2
Specialty packages		80		2			10		92		2.5
Surety and executive risk		130		2			57		189		5.1
Machinery and equipment		1		3			1		5		0.1
Total	$	2,041	$	847		$	840	$	3,728		100.0	%
Personal auto	$	126	$	(1	)	$	28	$	153		43.4	%
Homeowner		73		21			17		111		31.4
Other personal		37		43			9		89		25.2
Total	$	236	$	63		$	54	$	353		100.0	%
Excess and surplus lines	$	29	$	10		$	17	$	56

16

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Consolidated

	Three months ended																		Six months ended				Nine months ended				Twelve months ended
(Dollars in millions)	12/31/11	9/30/11	6/30/11	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10			6/30/11	6/30/10			9/30/11	9/30/10			12/31/11	12/31/10
Premiums
Agency renewal written premiums				$	708		$	648		$	677		$	685		$	682			$	1,367			$	2,044			$	2,692
Agency new business written premiums					102			107			109			106			92				198				307				414
Other written premiums					(31	)		(33	)		(50	)		(42	)		(18	)			(60	)			(110	)			(143	)
Reported written premiums – statutory*				$	779		$	722		$	736		$	749		$	756			$	1,505			$	2,241			$	2,963
Unearned premium change					(34	)		23			7			(21	)		(48	)			(69	)			(62	)			(39	)
Earned premiums				$	745		$	745		$	743		$	728		$	708			$	1,436			$	2,179			$	2,924
Year over year change %
Agency renewal written premiums					4	%		2	%		1	%		3	%		(2	) %			0	%			1	%			1	%
Agency new business written premiums					11			14			2			(1	)		(5	)			(3	)			(1	)			2
Other written premiums					(72	)		33			(9	)		16			(29	)			6				0				10
Reported written premiums – statutory*					3			6			1			4			(3	)			0				0				2
Paid losses and loss expenses
Losses paid				$	404		$	400		$	421		$	382		$	334			$	716			$	1,137			$	1,537
Loss expenses paid					85			93			84			72			80				151				235				328
Loss and loss expenses paid				$	489		$	493		$	505		$	454		$	414			$	867			$	1,372			$	1,865
Statutory combined ratio
Loss ratio					58.4	%		47.7	%		58.8	%		65.1	%		54.3	%			59.8	%			59.5	%			56.5	%
Allocated loss expense ratio					6.0			6.7			5.9			5.7			6.0				5.8				5.9				6.1
Unallocated loss expense ratio					6.7			6.5			6.9			5.2			6.7				6.0				6.2				6.3
Net underwriting expense ratio					32.2			33.3			32.9			31.3			34.1				32.7				32.8				32.9
Statutory combined ratio					103.3	%		94.2	%		104.5	%		107.3	%		101.1	%			104.3	%			104.4	%			101.8	%
Contribution from catastrophe losses					5.5			0.7			3.8			13.6			2.1				8.0				6.5				5.1
Statutory combined ratio excluding catastrophe losses					97.8	%		93.5	%		100.7	%		93.7	%		99.0	%			96.3	%			97.9	%			96.7	%
Commission expense ratio					18.4	%		19.9	%		18.7	%		17.9	%		18.4	%			18.1	%			18.3	%			18.7	%
Other expense ratio					13.8			13.4			14.2			13.4			15.7				14.6				14.5				14.2
Statutory expense ratio					32.2	%		33.3	%		32.9	%		31.3	%		34.1	%			32.7	%			32.8	%			32.9	%
GAAP combined ratio
GAAP combined ratio					103.9	%		93.1	%		103.9	%		107.6	%		102.6	%			105.2	%			104.7	%			101.7	%
Contribution from catastrophe losses					5.5			0.7			3.8			13.6			2.1				8.0				6.5				5.1
GAAP combined ratio excluding catastrophe losses					98.4	%		92.4	%		100.1	%		94.0	%		100.5	%			97.2	%			98.2	%			96.6	%

* 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.

* 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.

17

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)	12/31/11	9/30/11	6/30/11	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10			6/30/11	6/30/10			9/30/11	9/30/10			12/31/11	12/31/10
Premiums
Agency renewal written premiums				$	542		$	474		$	479		$	492		$	533			$	1,025			$	1,504			$	1,978
Agency new business written premiums					71			76			74			73			66				139				213				289
Other written premiums					(25	)		(26	)		(42	)		(33	)		(11	)			(44	)			(86	)			(112	)
Reported written premiums – statutory*				$	588		$	524		$	511		$	532		$	588			$	1,120			$	1,631			$	2,155
Unearned premium change					(48	)		22			36			6			(65	)			(59	)			(23	)			(1	)
Earned premiums				$	540		$	546		$	547		$	538		$	523			$	1,061			$	1,608			$	2,154
Year over year change %
Agency renewal written premiums					2	%		(1	) %		(2	) %		1	%		(4	) %			(2	) %			(2	) %			(2	) %
Agency new business written premiums					8			13			(3	)		(8	)		(13	)			(10	)			(8	)			(3	)
Other written premiums					(127	)		38			(14	)		23			(57	)			14				2				14
Reported written premiums – statutory*					0			4			(3	)		2			(6	)			(3	)			(3	)			(1	)
Paid losses and loss expenses
Losses paid				$	290		$	284		$	290		$	266		$	230			$	497			$	786			$	1,070
Loss expenses paid					69			75			65			58			63				120				186				261
Loss and loss expenses paid				$	359		$	359		$	355		$	324		$	293			$	617			$	972			$	1,331
Statutory combined ratio
Loss ratio					55.5	%		44.2	%		57.1	%		59.0	%		53.8	%			56.4	%			56.7	%			53.5	%
Allocated loss expense ratio					7.0			7.9			6.9			6.5			7.1				6.8				6.8				7.1
Unallocated loss expense ratio					6.7			6.4			6.7			4.8			6.6				5.7				6.0				6.1
Net underwriting expense ratio					32.9			33.4			34.8			31.7			31.9				31.8				32.7				32.9
Statutory combined ratio					102.1	%		91.9	%		105.5	%		102.0	%		99.3	%			100.7	%			102.2	%			99.6	%
Contribution from catastrophe losses					4.9			1.0			3.2			10.4			1.8				6.2				5.2				4.1
Statutory combined ratio excluding catastrophe losses					97.2	%		90.9	%		102.3	%		91.6	%		97.5	%			94.5	%			97.0	%			95.5	%
Commission expense ratio					18.5	%		19.0	%		19.0	%		17.6	%		17.2	%			17.4	%			17.9	%			18.1	%
Other expense ratio					14.4			14.4			15.8			14.1			14.7				14.4				14.8				14.8
Statutory expense ratio					32.9	%		33.4	%		34.8	%		31.7	%		31.9	%			31.8	%			32.7	%			32.9	%
GAAP combined ratio
GAAP combined ratio					104.0	%		90.6	%		103.4	%		101.7	%		102.1	%			101.9	%			102.4	%			99.4	%
Contribution from catastrophe losses					4.9			1.0			3.2			10.4			1.8				6.2				5.2				4.1
GAAP combined ratio excluding catastrophe losses					99.1	%		89.6	%		100.2	%		91.3	%		100.3	%			95.7	%			97.2	%			95.3	%

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

* 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

Quarterly Property Casualty Data - Personal Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/11	9/30/11	6/30/11	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10			6/30/11	6/30/10			9/30/11	9/30/10			12/31/11	12/31/10
Premiums
Agency renewal written premiums				$	156		$	166		$	189		$	187		$	143			$	330			$	519			$	685
Agency new business written premiums					22			23			25			24			18				42				67				90
Other written premiums					(5	)		(6	)		(6	)		(7	)		(6	)			(13	)			(19	)			(25	)
Reported written premiums – statutory*				$	173		$	183		$	208		$	204		$	155			$	359			$	567			$	750
Unearned premium change					17			3			(26	)		(25	)		19				(6	)			(32	)			(29	)
Earned premiums				$	190		$	186		$	182		$	179		$	174			$	353			$	535			$	721
Year over year change %
Agency renewal written premiums					9	%		8	%		7	%		6	%		4	%			5	%			6	%			7	%
Agency new business written premiums					22			15			19			26			29				24				22				20
Other written premiums					17			0			25			(40	)		0				0				10				4
Reported written premiums – statutory*					12			10			9			7			7				7				8				9
Paid losses and loss expenses
Losses paid				$	109		$	116		$	128		$	114		$	103			$	217			$	345			$	461
Loss expenses paid					15			17			17			14			17				30				48				65
Loss and loss expenses paid				$	124		$	133		$	145		$	128		$	120			$	247			$	393			$	526
Statutory combined ratio
Loss ratio					64.9	%		60.5	%		63.2	%		82.4	%		55.3	%			69.0	%			67.0	%			65.4	%
Allocated loss expense ratio					2.3			2.5			1.9			2.0			1.9				2.0				1.9				2.1
Unallocated loss expense ratio					6.9			6.9			7.2			6.7			7.2				6.9				7.1				6.9
Net underwriting expense ratio					30.3			32.6			28.4			30.1			42.1				35.3				32.8				32.7
Statutory combined ratio					104.4	%		102.5	%		100.7	%		121.2	%		106.5	%			113.2	%			108.8	%			107.1	%
Contribution from catastrophe losses					7.4			(0.3	)		6.0			23.8			3.0				13.6				11.0				8.1
Statutory combined ratio excluding catastrophe losses					97.0	%		102.8	%		94.7	%		97.4	%		103.5	%			99.6	%			97.8	%			99.0	%
Commission expense ratio					17.9	%		21.7	%		17.1	%		18.1	%		22.4	%			20.0	%			19.0	%			19.6	%
Other expense ratio					12.4			10.9			11.3			12.0			19.7				15.3				13.8				13.1
Statutory expense ratio					30.3	%		32.6	%		28.4	%		30.1	%		42.1	%			35.3	%			32.8	%			32.7	%
GAAP combined ratio
GAAP combined ratio					101.4	%		101.9	%		103.4	%		123.4	%		102.5	%			113.1	%			109.8	%			107.7	%
Contribution from catastrophe losses					7.4			(0.3	)		6.0			23.8			3.0				13.6				11.0				8.1
GAAP combined ratio excluding catastrophe losses					94.0	%		102.2	%		97.4	%		99.6	%		99.5	%			99.5	%			98.8	%			99.6	%

* 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.

* 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 - Excess & Surplus Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/11	9/30/11	6/30/11	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10			6/30/11	6/30/10			9/30/11	9/30/10			12/31/11	12/31/10
Premiums
Agency renewal written premiums				$	10		$	8		$	9		$	7		$	6			$	12			$	21			$	29
Agency new business written premiums					9			8			9			10			8				18				27				35
Other written premiums					(1	)		(1	)		(2	)		(2	)		(1	)			(3	)			(5	)			(6	)
Reported written premiums – statutory*				$	18		$	15		$	16		$	15		$	13			$	27			$	43			$	58
Unearned premium change					(3	)		(1	)		(3	)		(4	)		(2	)			(5	)			(8	)			(9	)
Earned premiums				$	15		$	14		$	13		$	11		$	11			$	22			$	35			$	49
Year over year change %
Agency renewal written premiums					67	%		100	%		200	%		200	%		500	%			500	%			320	%			190	%
Agency new business written premiums					13			14			0			25			14				13				8				9
Other written premiums					0			0		nm			nm				0				(200	)			(400	)			(100	)
Reported written premiums – statutory*					38			50			33			40			86				59				48				49
Paid losses and loss expenses
Losses paid				$	4		$	1		$	3		$	1		$	1			$	2			$	5			$	6
Loss expenses paid					1			1			1			0			0				1				2				2
Loss and loss expenses paid				$	5		$	2		$	4		$	1		$	1			$	3			$	7			$	8
Statutory combined ratio
Loss ratio					77.6	%		20.8	%		72.3	%		81.5	%		65.4	%			73.5	%			73.1	%			58.1	%
Allocated loss expense ratio					19.1			16.1			23.5			20.4			21.0				20.7				21.8				20.1
Unallocated loss expense ratio					6.1			2.7			7.9			6.5			5.1				5.8				6.5				5.5
Net underwriting expense ratio					27.6			39.0			30.8			33.5			38.5				35.8				33.9				35.2
Statutory combined ratio					130.4	%		78.6	%		134.5	%		141.9	%		130.0	%			135.8	%			135.3	%			118.9	%
Contribution from catastrophe losses					2.8			(0.1	)		4.6			0.0			0.0				0.0				1.7				1.2
Statutory combined ratio excluding catastrophe losses					127.6	%		78.7	%		129.9	%		141.9	%		130.0	%			135.8	%			133.6	%			117.7	%
Commission expense ratio					22.2	%		30.7	%		27.0	%		26.0	%		28.2	%			27.0	%			27.0	%			27.9	%
Other expense ratio					5.4			8.3			3.8			7.5			10.3				8.8				6.9				7.3
Statutory expense ratio					27.6	%		39.0	%		30.8	%		33.5	%		38.5	%			35.8	%			33.9	%			35.2	%
GAAP combined ratio
GAAP combined ratio					133.0	%		75.3	%		129.8	%		137.5	%		127.1	%			132.4	%			131.4	%			115.4	%
Contribution from catastrophe losses					2.8			(0.1	)		4.6			0.0			0.0				0.0				1.7				1.2
GAAP combined ratio excluding catastrophe losses					130.2	%		75.4	%		125.2	%		137.5	%		127.1	%			132.4	%			129.7	%			114.2	%

* 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.

* Statutory data does not include CSU Producers Resources Inc.

20

The Cincinnati Life Insurance Company

Statutory Statements of Income

	For the Three Months Ended March 31,
(Dollars in millions)	2011			2010			Change			% Change
Net premiums written	$	102		$	104		$	(2	)		(2	)
Net investment income		34			33			1			3
Amortization of interest maintenance reserve		-			(1	)		1		nm
Commissions and expense allowances on reinsurance ceded		2			2			-		nm
Income from fees associated with Separate Accounts		1			1			-		nm
Total revenues	$	139		$	139		$	-		nm
Death benefits and matured endowments	$	16		$	13		$	3			23
Annuity benefits		13			9			4			44
Disability benefits and benefits under accident and health contracts		-			1			(1	)	nm
Surrender benefits and group conversions		6			5			1			20
Interest and adjustments on deposit-type contract funds		3			3			-		nm
Increase in aggregate reserves for life and accident and health contracts		77			84			(7	)		(8	)
Total benefit expenses	$	115		$	115		$	-		nm
Commissions	$	12		$	12		$	-		nm
General insurance expenses and taxes		10			10			-		nm
Increase in loading on deferred and uncollected premiums		-			(1	)		1		nm
Total operating expenses	$	22		$	21		$	1			5
Federal and foreign income tax benefit		8			(4	)		12		nm
Net gain from operations before realized capital gains	$	(6	)	$	7		$	(13	)	nm
Net realized gains net of capital gains tax		(20	)		2			(22	)	nm
Net income (loss) (statutory)	$	(26	)	$	9		$	(35	)	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.

21