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

Exhibit 99.2 – Supplemental Financial Data for the period ending June 30, 2011 distributed July 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: July 27, 2011	/S/Michael J. Sewell
	Michael J. Sewell, CPA
	Chief Financial Officer, Senior Vice President and Treasurer

EX-99.1

The Cincinnati Insurance Company  ■  The Cincinnati Indemnity Company The Cincinnati Casualty Company  ■  The Cincinnati Specialty Underwriters Insurance Company The Cincinnati Life Insurance Company  ■  CFC Investment Company  ■  CSU Producer Resources Inc.

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 Second-Quarter 2011 Results

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

· $49 million, or 30 cents per share, of net loss for the second quarter of 2011 compared with $27 million, or 17 cents net income per share, in the 2010 second quarter.

· Operating loss* of $93 million, or 57 cents per share, compared with operating income of $42 million, or 26 cents.

· $76 million decrease in second-quarter 2011 net income driven by a $137 million after-tax decrease in the contribution from property casualty underwriting operations. The after-tax effect of second-quarter 2011 property casualty losses from natural catastrophes totaled $189 million, up $124 million compared with the same period of 2010. The contribution to income from investments, including net realized investment gains, rose $60 million for the quarter.

· $31.01 book value per share at June 30, 2011, down approximately 1 percent from March 31, 2011, and up less than 1 percent from December 31, 2010.

· 2.9 percent value creation ratio for the first six months of 2011, compared with 2.3 percent for the first half of 2010.

Financial Highlights

(Dollars in millions except share data)	Three months ended June 30,								Six months ended June 30,
	2011			2010			Change %		2011			2010			Change %
Revenue Highlights
Earned premiums	$	773		$	768			1	$	1,555		$	1,515			3
Investment income, pre-tax		132			130			2		263			260			1
Total revenues		975			878			11		1,904			1,765			8
Income Statement Data
Net income (loss)	$	(49	)	$	27		nm		$	13		$	95			(86	)
Net realized investment gains and losses		44			(15	)	nm			51			(10	)	nm
Operating income (loss)*	$	(93	)	$	42		nm		$	(38	)	$	105		nm
Per Share Data (diluted)
Net income (loss)	$	(0.30	)	$	0.17		nm		$	0.08		$	0.58			(86	)
Net realized investment gains and losses		0.27			(0.09	)	nm			0.31			(0.06	)	nm
Operating income (loss)*	$	(0.57	)	$	0.26		nm		$	(0.23	)	$	0.64		nm
Book value									$	31.01		$	29.13			6
Cash dividend declared	$	0.40		$	0.395			1	$	0.80		$	0.79			1
Weighted average shares outstanding		163,068,516			163,284,013			0		163,684,903			163,293,335			0

Insurance Operations Second-Quarter Highlights

· 136.6 percent second-quarter 2011 property casualty combined ratio, rising from 107.6 percent from one year ago.

· 3 percent growth in property casualty net written premiums, up in all three of our property casualty segments.

· $117 million second-quarter 2011 property casualty new business written premiums, up 10 percent from 2010. Agencies produced our highest quarter ever for new business, up in all three of our property casualty segments.

· 8 cents per share contribution from life insurance to second-quarter operating income, up 2 cents from 2010.

Investment and Balance Sheet Highlights

· 2 percent second-quarter 2011 growth in pre-tax investment income as higher dividends offset lower interest income that continued to reflect depressed yields in the bond market.

· 2 percent six-month rise in fair value of invested assets at June 30, 2011, including second-quarter 2010 bond portfolio growth of 2 percent.

· $1.086 billion parent company cash and marketable securities at June 30, 2011, up 4 percent from year-end.

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

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

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Fundamentally Prepared

Steven J. Johnston, FCAS, MAAA, CFA, president and chief executive officer, commented: “The Cincinnati Insurance Companies were prepared – operationally and financially – for the pounding our own policyholders and the property casualty insurance industry took from this spring’s powerful storms. While the previously announced, record-breaking catastrophe losses depleted our operating earnings for the second quarter and first half of 2011, our capital and book value per share rose above 2010 year-end levels. Confident in our very strong balance sheet and risk management decisions, we were able to focus on what was important: outstanding claims service and our ongoing initiatives to grow our business and improve its profitability.

“We quickly identified the worst-hit communities, dispatching more than 250 of our own experienced claims representatives to those locations during the second quarter. Technology was in place to give them field access to estimating tools, other resources and records; and they had the authority to provide prompt assistance. Our storm response teams were well equipped to put policyholders on the road to recovery, overcoming the operational difficulties presented by the sheer devastation of community infrastructure and the sheer volume of reported catastrophe claims – more than 21,000 to-date from second-quarter events.

“And we were prepared financially. For more than 60 years, our capital and risk management choices have consistently and conservatively balanced the need to build a strong foundation for long-term success with the need for current earnings. We met these catastrophes equipped with a strong reinsurance program featuring relatively lower loss retention; ample cash flow and liquidity; solid loss reserves and property casualty surplus; and the financial flexibility that comes from maintaining over $1 billion of cash and marketable securities at our parent company.

“Our reinsurance program covered more than $220 million of our estimate for gross catastrophe losses, reducing the net pretax loss to $290 million. During the second quarter we replenished reinsurance coverage for the remainder of 2011 for any single catastrophe event that causes losses above $70 million and up to $200 million, and coverage remains in place for losses up to $500 million. In effect, reinsurance protects our $12 billion investment portfolio, allowing us to pay claims while holding securities to maturity as planned. Unrealized gains accumulated in our portfolio rose to $1.5 billion pretax, up $75 million during the second quarter after harvesting $67 million of net investment gains. Pretax investment income grew 2 percent for the quarter. That growth has been a bright spot for us even in the current low-interest rate environment, due in large part to dividend-paying stocks in our portfolio. Another consistent contributor is our life insurance operation, which increased its operating profit by 20 percent for the second quarter.”

Improving Trends

“Our second-quarter and first-half property casualty underwriting results are more complex than usual due to the catastrophes, reinsurance coverage and $38 million of premiums we passed to reinsurers to reinstate part of our reinsurance program. Looking beyond the complexity of those three items, we offer two observations. First, our catastrophe claims response plan and reinsurance program made us very effective at fulfilling our obligation to policyholders at their time of need, and we’ll continue to take a similar approach. Second, the negative effects of those three items mask improving trends for underlying premium growth and profitability. Despite those effects, second-quarter written premium growth was satisfactory at 3 percent, including record new business written premiums from our agents. Our reported six-month combined ratio rose 14.9 percentage points, including 14.5 points from higher catastrophe losses and 2.4 points from the effect of the $38 million reinsurance reinstatement premium.

“We believe our company’s strategic initiatives, rather than marketplace changes, are positioning us for improved growth and profitability. Growth in our established agencies and states is boosted by growth in more recently appointed agencies and states entered in recent years to widen our geographic footprint. Growth also reflects sales of excess and surplus lines products, all new offerings since 2007; and our new target markets products, which are niche insurance programs developed for select business classes found in nearly every agent’s community.

“Improved pricing is an important way to increase underwriting profitability. Again, we are not looking to the marketplace to bring better prices to us. Our agents are working with us to market the value of the Cincinnati policy and service. While we still see average renewal price declines on commercial business overall, the declines are narrowing. We are obtaining price increases for workers’ compensation in total and for many other individual commercial lines policies, in addition to average renewal price increases for personal lines in total and excess and surplus lines in total. Predictive analytics tools are in use to guide pricing for several of our product lines, helping us compete for higher quality accounts and selectively target increases for other accounts, and we are developing similar tools to enhance pricing precision for additional lines of business.”

Consistency

“Our initiatives to grow profitably are bringing many changes. Still, we are careful to distinguish between tactical changes that lead to performance improvements and more fundamental, unchanging principles and practices. These fundamentals define our business model, giving us competitive advantages and increasing strength and stability over the long term. This month Ward Group announced that The Cincinnati Insurance Companies stand among the top performing insurers on its annual Ward's 50 list. Insurers and groups named to the list have excelled at balancing safety and consistency and have achieved superior performance over the past five years. Cincinnati is one of only four companies named to the property casualty Ward's 50 for 21 consecutive years.

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“In May, Fitch Ratings affirmed our ratings with a stable outlook, considering our capital, liquidity and distribution advantages as well as our natural catastrophe risk in its decision. We have never had catastrophe losses like those of second-quarter 2011, and we hope to never again have that experience, but catastrophes are a part of our insurance business, and we will be prepared.”

Consolidated Property Casualty Insurance Operations

(Dollars in millions)	Three months ended June 30,									Six months ended June 30,
	2011			2010			Change %			2011			2010			Change %
Earned premiums	$	730		$	728			0		$	1,475		$	1,436			3
Fee revenues		1			1			0			2			2			0
Total revenues		731			729			0			1,477			1,438			3
Loss and loss expenses		759			553			37			1,289			1,028			25
Underwriting expenses		237			230			3			482			482			0
Underwriting loss	$	(265	)	$	(54	)		(391	)	$	(294	)	$	(72	)		(308	)
							Pt. Change									Pt. Change
Ratios as a percent of earned premiums:
Loss and loss expenses		104.1	%		76.0	%		28.1			87.4	%		71.6	%		15.8
Underwriting expenses		32.5			31.6			0.9			32.7			33.6			(0.9	)
Combined ratio		136.6	%		107.6	%		29.0			120.1	%		105.2	%		14.9
							Change %									Change %
Agency renewal written premiums	$	717		$	685			5		$	1,425		$	1,367			4
Agency new business written premiums		117			106			10			219			198			11
Other written premiums		(66	)		(42	)		(57	)		(97	)		(60	)		(62	)
Net written premiums	$	768		$	749			3		$	1,547		$	1,505			3
							Pt. Change									Pt. Change
Ratios as a percent of earned premiums:
Current accident year before catastrophe losses		77.3	%		71.7	%		5.6			75.2	%		70.6	%		4.6
Current accident year catastrophe losses		39.7			14.3			25.4			22.5			8.8			13.7
Prior accident years before catastrophe losses		(13.0	)		(9.3	)		(3.7	)		(10.3	)		(7.0	)		(3.3	)
Prior accident years catastrophe losses		0.1			(0.7	)		0.8			0.0			(0.8	)		0.8
Total loss and loss expenses		104.1	%		76.0	%		28.1			87.4	%		71.6	%		15.8
Current accident year combined ratio before catastrophe losses		109.8	%		103.3	%		6.5			107.9	%		104.2	%		3.7

· $19 million or 3 percent increase in second-quarter 2011 property casualty net written premiums and six-month growth of 3 percent. Solid growth for renewal and new business premiums was partially offset by $38 million of ceded premiums to reinstate property catastrophe reinsurance coverage.

· $11 million increase to $117 million second-quarter new business written by agencies, largely from recent-year growth initiatives, including $10 million of the increase from agencies appointed since the beginning of 2010.

· 1,281 agency relationships in 1,593 reporting locations marketing our standard market property casualty insurance products at June 30, 2011, compared with 1,245 agency relationships in 1,544 reporting locations at year-end 2010. Seventy-one new agencies were appointed during the first six months of 2011.

· 29.0 and 14.9 percentage-point rise in the second-quarter and first-half combined ratios primarily due to 26.2 and 14.5 point increases in natural catastrophe losses plus lower earned premiums from $38 million reinstatement premiums that added another 4.8 and 2.4 percentage points to the second-quarter and first-half 2011 combined ratios.

· 12.9 percentage points second-quarter 2011 benefit from favorable prior accident year reserve development of $95 million, compared with 10.0 percent or $73 million for second-quarter 2010. Six-month ratio of 10.3 percent equaled the full-year 2010 ratio.

· 0.9 percentage-point rise in the second-quarter 2011 underwriting expense ratio, including 1.6 points from the effect of reinsurance reinstatement ceded premiums causing earned premiums to grow more slowly than expenses.

CINF 2Q11 Earnings Release

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The following table shows incurred catastrophe losses for 2011 and 2010.

(In millions, net of reinsurance)			Three months ended June 30,											Six months ended June 30,
			Comm.			Pers.			E&S					Comm.			Pers.			E&S
Dates	Cause of loss	Region	lines			lines			lines		Total			lines			lines			lines		Total
2011
First quarter catastrophes			$	-		$	(1	)	$	-	$	(1	)	$	18		$	12		$	-	$	30
Apr. 3-5	Flood, hail, tornado, wind	South, Midwest		16			22			-		38			16			22			-		38
Apr. 8-11	Flood, hail, tornado, wind	South, Midwest		11			9			-		20			11			9			-		20
Apr. 14-16	Flood, hail, tornado, wind	South, Midwest		10			4			-		14			10			4			-		14
Apr. 19-20	Hail, wind	South, Midwest		13			13			-		26			13			13			-		26
Apr. 22-28	Flood, hail, tornado, wind	South, Midwest		47			31			-		78			47			31			-		78
May 20-27	Flood, hail, tornado, wind	South, Midwest		45			37			-		82			45			37			-		82
May 29-Jun. 1	Flood, hail, tornado, wind	East, Midwest		4			2			-		6			4			2			-		6
Jun. 16-22	Flood, hail, tornado, wind	South, Midwest		7			10			-		17			7			10			-		17
All other 2011 catastrophes				4			5			1		10			9			11			1		21
Development on 2010 and prior catastrophes				-			-			-		-			4			(5	)		-		(1	)
Calendar year incurred total			$	157		$	132		$	1	$	290		$	184		$	146		$	1	$	331
2010
First quarter catastrophes			$	(2	)	$	-		$	-	$	(2	)	$	8		$	4		$	-	$	12
Apr. 4-6	Flood, hail, tornado, wind	South, Midwest		5			6			-		11			5			6			-		11
Apr. 30-May 3	Flood, hail, tornado, wind	South		28			6			-		34			28			6			-		34
May 7-8	Hail, tornado, wind	East, Midwest		2			10			-		12			2			10			-		12
May 12-16	Flood, hail, tornado, wind	South, Midwest		3			2			-		5			3			2			-		5
Jun. 4-6	Flood, hail, tornado, wind	Midwest		3			3			-		6			3			3			-		6
Jun. 17-20	Flood, hail, tornado, wind	Midwest, West		5			4			-		9			5			4			-		9
Jun. 21-24	Flood, hail, tornado, wind	Midwest		4			5			-		9			4			5			-		9
Jun. 25-28	Flood, hail, tornado, wind	Midwest		1			4			-		5			1			4			-		5
All other 2010 catastrophes				11			4			-		15			17			6			-		23
Development on 2009 and prior catastrophes				(4	)		(1	)		-		(5	)		(10	)		(2	)		-		(12	)
Calendar year incurred total			$	56		$	43		$	-	$	99		$	66		$	48		$	-	$	114

CINF 2Q11 Earnings Release

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Insurance Operations Highlights

Commercial Lines Insurance Operations

(Dollars in millions)	Three months ended June 30,									Six months ended June 30,
	2011			2010			Change %			2011			2010			Change %
Earned premiums	$	533		$	538			(1	)	$	1,073		$	1,061			1
Fee revenues		-			-		nm				1			1			0
Total revenues		533			538			(1	)		1,074			1,062			1
Loss and loss expenses		483			379			27			857			731			17
Underwriting expenses		178			169			5			366			350			5
Underwriting loss	$	(128	)	$	(10	)	nm			$	(149	)	$	(19	)	nm
							Pt. Change									Pt. Change
Ratios as a percent of earned premiums:
Loss and loss expenses		90.8	%		70.4	%		20.4			79.9	%		68.9	%		11.0
Underwriting expenses		33.4			31.3			2.1			34.1			33.0			1.1
Combined ratio		124.2	%		101.7	%		22.5			114.0	%		101.9	%		12.1
							Change %									Change %
Agency renewal written premiums	$	500		$	492			2		$	1,042		$	1,025			2
Agency new business written premiums		81			73			11			152			139			9
Other written premiums		(44	)		(33	)		(33	)		(69	)		(44	)		(57	)
Net written premiums	$	537		$	532			1		$	1,125		$	1,120			0
							Pt. Change									Pt. Change
Ratios as a percent of earned premiums:
Current accident year before catastrophe losses		75.9	%		71.7	%		4.2			75.2	%		71.4	%		3.8
Current accident year catastrophe losses		29.5			11.2			18.3			16.8			7.2			9.6
Prior accident years before catastrophe losses		(14.8	)		(11.7	)		(3.1	)		(12.5	)		(8.7	)		(3.8	)
Prior accident years catastrophe losses		0.2			(0.8	)		1.0			0.4			(1.0	)		1.4
Total loss and loss expenses		90.8	%		70.4	%		20.4			79.9	%		68.9	%		11.0
Current accident year combined ratio before catastrophe losses		109.3	%		103.0	%		6.3			109.3	%		104.4	%		4.9

· $5 million or 1 percent increase in second-quarter 2011 commercial lines net written premiums as growth in renewal and new business written premiums more than offset $23 million of ceded premiums from reinstatement of property catastrophe reinsurance. Second-quarter and six-month renewal and new business premium growth trended similarly.

· $8 million and $17 million increases in second quarter and six-month renewal written premiums largely reflected the effects of improving economic conditions on insured exposure levels, partially offset by approximately 1 percent on average pricing decline for the second-quarter 2011, improved slightly from a low-single-digit range for first quarter.

· $8 million increase to $81 million in new business written premiums, rising in both newer and established states.

· 22.5 and 12.1 percentage-point rise in the second-quarter and first-half combined ratios primarily due to 19.3 and 11.0 point increases in natural catastrophe losses plus lower earned premiums from reinstatement premiums.

· 75.2 percent ratio for six-month 2011 accident year losses and loss expenses before catastrophes increased 0.7 percentage points over full-year 2010, with the reinsurance reinstatement ceded premium effect contributing 1.5 points.

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Personal Lines Insurance Operations

(Dollars in millions)	Three months ended June 30,									Six months ended June 30,
	2011			2010			Change %			2011			2010			Change %
Earned premiums	$	180		$	179			1		$	370		$	353			5
Fee revenues		1			1			0			1			1			0
Total revenues		181			180			1			371			354			5
Loss and loss expenses		269			163			65			410			275			49
Underwriting expenses		54			57			(5	)		106			124			(15	)
Underwriting loss	$	(142	)	$	(40	)		(255	)	$	(145	)	$	(45	)		(222	)
							Pt. Change									Pt. Change
Ratios as a percent of earned premiums:
Loss and loss expenses		149.4	%		91.1	%		58.3			110.7	%		77.9	%		32.8
Underwriting expenses		29.8			32.3			(2.5	)		28.5			35.2			(6.7	)
Combined ratio		179.2	%		123.4	%		55.8			139.2	%		113.1	%		26.1
							Change %									Change %
Agency renewal written premiums	$	205		$	187			10		$	361		$	330			9
Agency new business written premiums		26			24			8			48			42			14
Other written premiums		(21	)		(7	)		(200	)		(26	)		(13	)		(100	)
Net written premiums	$	210		$	204			3		$	383		$	359			7
							Pt. Change									Pt. Change
Ratios as a percent of earned premiums:
Current accident year before catastrophe losses		81.2	%		70.3	%		10.9			74.4	%		67.0	%		7.4
Current accident year catastrophe losses		73.5			24.5			49.0			40.8			14.1			26.7
Prior accident years before catastrophe losses		(5.2	)		(3.0	)		(2.2	)		(3.1	)		(2.7	)		(0.4	)
Prior accident years catastrophe losses		(0.1	)		(0.7	)		0.6			(1.4	)		(0.5	)		(0.9	)
Total loss and loss expenses		149.4	%		91.1	%		58.3			110.7	%		77.9	%		32.8
Current accident year combined ratio before catastrophe losses		111.0	%		102.6	%		8.4			102.9	%		102.2	%		0.7

· $6 million or 3 percent growth in second-quarter 2011 personal lines net written premiums and six-month growth of 7 percent, as healthy increases in renewal and new business written premiums for both periods more than offset $15 million of ceded premiums to reinstate property catastrophe reinsurance.

· 55.8 and 26.1 percentage-point rise in the second-quarter and first-half combined ratios primarily due to 49.6 and 25.8 point increases in weather-related catastrophe losses plus lower earned premiums from reinstatement premiums.

· 74.4 percent ratio for six-month 2011 accident year losses and loss expenses before catastrophes was a 4.0 percentage-point increase over full-year 2010, including reinstatement premium effects contributing 3.0 points, higher new large losses contributing 0.5 points, plus higher weather-related losses not part of an industry-designated catastrophe event.

· 6.7 percentage-point decline in the six-month underwriting expense ratio was primarily due to higher first-quarter 2010 expenses from provisions for commitments and contingent liabilities.

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Excess and Surplus Lines Insurance Operations

(Dollars in millions)	Three months ended June 30,									Six months ended June 30,
	2011			2010			Change %			2011			2010			Change %
Earned premiums	$	17		$	11			55		$	32		$	22			45
Loss and loss expenses		7			11			(36	)		22			22			0
Underwriting expenses		5			4			25			10			8			25
Underwriting profit (loss)	$	5		$	(4	)	nm			$	-		$	(8	)	nm
							Pt. Change									Pt. Change
Ratios as a percent of earned premiums:
Loss and loss expenses		41.5	%		108.4	%		(66.9	)		70.3	%		100.0	%		(29.7	)
Underwriting expenses		33.2			29.1			4.1			31.8			32.4			(0.6	)
Combined ratio		74.7	%		137.5	%		(62.8	)		102.1	%		132.4	%		(30.3	)
							Change %									Change %
Agency renewal written premiums	$	12		$	6			100		$	22		$	12			83
Agency new business written premiums		10			9			11			19			17			12
Other written premiums		(1	)		(2	)		50			(2	)		(3	)		33
Net written premiums	$	21		$	13			62		$	39		$	26			50
							Pt. Change									Pt. Change
Ratios as a percent of earned premiums:
Current accident year before catastrophe losses		79.0	%		93.3	%		(14.3	)		88.3	%		90.7	%		(2.4	)
Current accident year catastrophe losses		4.9			5.6			(0.7	)		3.4			2.8			0.6
Prior accident years before catastrophe losses		(41.9	)		9.5			(51.4	)		(21.6	)		6.6			(28.2	)
Prior accident years catastrophe losses		(0.5	)		0.0			(0.5	)		0.2			(0.1	)		0.3
Total loss and loss expenses		41.5	%		108.4	%		(66.9	)		70.3	%		100.0	%		(29.7	)
Current accident year combined ratio before catastrophe losses		112.2	%		122.4	%		(10.2	)		120.1	%		123.1	%		(3.0	)

· $8 million or 62 percent growth in second-quarter 2011 excess and surplus lines net written premiums and six-month growth of 50 percent, largely driven by the opportunity to renew many accounts for the first time.

· 11 percent and 12 percent increase in new business written premiums for the second quarter and first half of 2011, similar to the full-year 2010 rate of 9 percent.

· 62.8 and 30.3 percentage-point combined ratio improvements for second quarter and first-half of 2011, primarily due to net favorable reserve development on prior accident years.

Life Insurance Operations

(In millions)	Three months ended June 30,							Six months ended June 30,
	2011		2010		Change %			2011		2010		Change %
Term life insurance	$	27	$	24		13		$	52	$	47		11
Universal life insurance		9		10		(10	)		14		19		(26	)
Other life insurance, annuity, and disability income products		7		6		17			14		13		8
Earned premiums		43		40		8			80		79		1
Investment income, net of expenses		34		33		3			67		65		3
Other income		-		1	nm				1		1		0
Total revenues, excluding realized investment gains and losses		77		74		4			148		145		2
Contract holders benefits		44		43		2			89		85		5
Underwriting expenses		14		16		(13	)		30		32		(6	)
Total benefits and expenses		58		59		(2	)		119		117		2
Net income before income tax and realized investment gains and losses		19		15		27			29		28		4
Income tax		7		5		40			10		10		0
Net income before realized investment gains and losses	$	12	$	10		20		$	19	$	18		6

· $3 million or 8 percent increase in second-quarter 2011 earned premiums, driven by term life insurance, our largest life insurance product line. Three- and six-month growth rates for term life insurance were similar. Face amount of life policies in force rose to $76.029 billion at June 30, 2011, from $74.124 billion at year-end 2010.

· $28 million and $89 million in second-quarter and first half 2011 for fixed annuity deposits received, slowing from $116 million and $201 million in first-half and full-year 2010. Cincinnati Life does not offer variable or indexed products.

· $2 million higher three-month profit was primarily due to increased earned premiums from strong renewal activity.

· $35 million or 5 percent first-half 2011 growth in shareholders’ equity for The Cincinnati Life Insurance Company.

CINF 2Q11 Earnings Release

7

Investment and Balance Sheet Highlights

Investment Operations

(In millions)	Three months ended June 30,								Six months ended June 30,
	2011			2010			Change %		2011			2010			Change %
Total investment income, net of expenses, pre-tax	$	132		$	130			2	$	263		$	260			1
Investment interest credited to contract holders		(20	)		(20	)		0		(40	)		(39	)		(3	)
Realized investment gains and losses summary:
Realized investment gains and losses		67			16			319		105			19			453
Change in fair value of securities with embedded derivatives		-			(5	)		nm		4			1			300
Other-than-temporary impairment charges		-			(34	)		nm		(30	)		(35	)		14
Total realized investment gains and losses		67			(23	)		nm		79			(15	)		nm
Investment operations profit	$	179		$	87			106	$	302		$	206			47

(In millions)	Three months ended June 30,									Six months ended June 30,
	2011			2010			Change %			2011			2010			Change %
Investment income:
Interest	$	106		$	107			(1	)	$	212		$	214			(1	)
Dividends		27			24			13			53			48			10
Other		1			1			0			2			2			0
Investment expenses		(2	)		(2	)		0			(4	)		(4	)		0
Total investment income, net of expenses, pre-tax		132			130			2			263			260			1
Income taxes		(33	)		(32	)		(3	)		(65	)		(64	)		(2	)
Total investment income, net of expenses, after-tax	$	99		$	98			1		$	198		$	196			1
Effective tax rate		24.6	%		24.5	%					24.5	%		24.5	%
Average yield pre-tax		4.6	%		4.8	%					4.6	%		4.8	%
Average yield after-tax		3.4	%		3.6	%					3.5	%		3.6	%

· 2 percent growth in second-quarter 2011 pretax investment income. 1 percent first-half growth of both pretax and after-tax investment income. Growth of dividend income more than offset lower interest income for both periods.

· $75 million or 5 percent second-quarter 2011 increase in pre-tax unrealized investment portfolio gains, including negative $21 million for the equity portfolio that reflected $61 million of realized gains from common stock sales.

(Dollars in millions except share data)	At June 30,			At December 31,
	2011			2010
Balance sheet data
Invested assets	$	11,757		$	11,508
Total assets		15,702			15,095
Short-term debt		49			49
Long-term debt		790			790
Shareholders' equity		5,057			5,032
Book value per share		31.01			30.91
Debt-to-total-capital ratio		14.2	%		14.3	%

	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Performance measure
Value creation ratio		0.1	%		(1.1	)%		2.9	%		2.3	%

· $12.070 billion in consolidated cash and invested assets at June 30, 2011, up 1 percent from $11.893 billion at year-end.

· $8.717 billion bond portfolio at June 30, 2011, with an average rating of A2/A and with a 4 percent rise in fair value during the first six months of 2011.

· $2.971 billion equity portfolio was 25.3 percent of invested assets, including $856 million in pre-tax net unrealized gains at June 30, 2011.

· $3.743 billion of statutory surplus for the property casualty insurance group at June 30, 2011, down $34 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 June 30, 2011, of 0.8-to-1, unchanged from the 12 months ended December 31, 2010.

· Value creation ratio of 0.1 percent for the second quarter of 2011 is the total of 1.3 percent from shareholder dividends minus 1.2 percent from the change in book value per share.

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

CINF 2Q11 Earnings Release

8

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 2Q11 Earnings Release

9

Cincinnati Financial Corporation

Condensed Consolidated Balance Sheets and Statements of Operations (unaudited)

(Dollars in millions)	June 30,			December 31,
	2011			2010
Assets
Investments	$	11,757		$	11,508
Cash and cash equivalents		313			385
Premiums receivable		1,106			1,015
Reinsurance receivable		753			572
Other assets		1,773			1,615
Total assets	$	15,702		$	15,095
Liabilities
Insurance reserves	$	6,683		$	6,234
Unearned premiums		1,630			1,553
Deferred income tax		324			260
Long-term debt		790			790
Other liabilities		1,218			1,226
Total liabilities		10,645			10,063
Shareholders' Equity
Common stock and paid-in capital		1,487			1,484
Retained earnings		3,862			3,980
Accumulated other comprehensive income		903			769
Treasury stock		(1,195	)		(1,201	)
Total shareholders' equity		5,057			5,032
Total liabilities and shareholders' equity	$	15,702		$	15,095

(Dollars in millions except per share data)	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Revenues
Earned premiums	$	773		$	768		$	1,555		$	1,515
Investment income, net of expenses		132			130			263			260
Realized investment gains and losses		67			(23	)		79			(15	)
Fee revenues		1			1			2			2
Other revenues		2			2			5			3
Total revenues		975			878			1,904			1,765
Benefits and Expenses
Insurance losses and policyholder benefits		801			595			1,376			1,111
Underwriting, acquisition and insurance expenses		251			246			512			514
Other operating expenses		6			3			10			7
Interest expense		14			13			27			27
Total benefits and expenses		1,072			857			1,925			1,659
Income (loss) Before Income Taxes		(97	)		21			(21	)		106
Provision (benefit) for Income Taxes		(48	)		(6	)		(34	)		11
Net Income (loss)	$	(49	)	$	27		$	13		$	95
Per Common Share:
Net income (loss)—basic	$	(0.30	)	$	0.17		$	0.08		$	0.59
Net income (loss)—diluted	$	(0.30	)	$	0.17		$	0.08		$	0.58

CINF 2Q11 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 June 30,						Six months ended June 30,
	2011			2010			2011			2010
Value creation ratio
End of period book value	$	31.01		$	29.13		$	31.01		$	29.13
Less beginning of period book value		31.40			29.86			30.91			29.25
Change in book value		(0.39	)		(0.73	)		0.10			(0.12	)
Dividend declared to shareholders		0.40			0.395			0.80			0.79
Total contribution to value creation ratio	$	0.01		$	(0.34	)	$	0.90		$	0.67
Contribution to value creation ratio from change in book value*		(1.2	) %		(2.4	) %		0.3	%		(0.4	) %
Contribution to value creation ratio from dividends declared to shareholders**		1.3			1.3			2.6			2.7
Value creation ratio		0.1	%		(1.1	) %		2.9	%		2.3	%

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

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

CINF 2Q11 Earnings Release

11

Cincinnati Financial Corporation

Net Income Reconciliation

(In millions except per share data)	Three months ended			Six months ended
	June 30, 2011			June 30, 2011
Net income (loss)	$	(49	)	$	13
Net realized investment gains and losses		44			51
Operating loss		(93	)		(38	)
Less catastrophe losses		(189	)		(216	)
Operating income before catastrophe losses	$	96		$	178
Diluted per share data:
Net income (loss)	$	(0.30	)	$	0.08
Net realized investment gains and losses		0.27			0.31
Operating loss		(0.57	)		(0.23	)
Less catastrophe losses		(1.16	)		(1.32	)
Operating income before catastrophe losses	$	0.59		$	1.09

Property Casualty Reconciliation

	Three months ended June 30, 2011
	Consolidated			Commercial			Personal			E&S
Premiums:
Written premiums	$	768		$	537		$	210		$	21
Unearned premiums change		(38	)		(4	)		(30	)		(4	)
Earned premiums	$	730		$	533		$	180		$	17
Statutory ratio:
Statutory combined ratio		135.4	%		123.0	%		178.4	%		73.1	%
Contribution from catastrophe losses		39.8			29.7			73.4			4.4
Statutory combined ratio excluding catastrophe losses		95.6	%		93.3	%		105.0	%		68.7	%
Commission expense ratio		18.2	%		17.7	%		18.7	%		24.5	%
Other expense ratio		13.1			14.5			10.3			7.1
Statutory expense ratio		31.3	%		32.2	%		29.0	%		31.6	%
GAAP ratio:
GAAP combined ratio		136.6	%		124.2	%		179.2	%		74.7	%
Contribution from catastrophe losses		39.8			29.7			73.4			4.4
Prior accident years before catastrophe losses		(13.0	)		(14.8	)		(5.2	)		(41.9	)
GAAP combined ratio excluding catastrophe losses and prior years reserve development		109.8	%		109.3	%		111.0	%		112.2	%

	Six months ended June 30, 2011
	Consolidated			Commercial			Personal			E&S
Premiums:
Written premiums	$	1,547		$	1,125		$	383		$	39
Unearned premiums change		(72	)		(52	)		(13	)		(7	)
Earned premiums	$	1,475		$	1,073		$	370		$	32
Statutory ratio:
Statutory combined ratio		119.2	%		112.5	%		140.2	%		100.1	%
Contribution from catastrophe losses		22.5			17.2			39.4			3.6
Statutory combined ratio excluding catastrophe losses		96.7	%		95.3	%		100.8	%		96.5	%
Commission expense ratio		18.3	%		18.1	%		18.3	%		23.5	%
Other expense ratio		13.5			14.5			11.2			6.3
Statutory expense ratio		31.8	%		32.6	%		29.5	%		29.8	%
GAAP ratio:
GAAP combined ratio		120.1	%		114.0	%		139.2	%		102.1	%
Contribution from catastrophe losses		22.5			17.2			39.4			3.6
Prior accident years before catastrophe losses		(10.3	)		(12.5	)		(3.1	)		(21.6	)
GAAP combined ratio excluding catastrophe losses and prior years reserve development		107.9	%		109.3	%		102.9	%		120.1	%

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

CINF 2Q11 Earnings Release

12

EX-99.2

Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending June 30, 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 July 26, 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

Second Quarter 2011

	Page
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3
Consolidated
Quick Reference	4
CFC and Subsidiaries Consolidation – Six Months Ended June 30, 2011	5
CFC and Subsidiaries Consolidation – Three Months Ended June 30, 2011	6
CFC Insurance Subsidiaries – Selected Balance Sheet Data	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
Catastrophe Detail	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.

CINF Second-Quarter 2011 Supplemental Financial Data

Cincinnati Financial Corporation

Quick Reference - Second Quarter 2011

(all data shown is for the three months ended or as of June 30, 2011)

				Year over year
	6/30/2011			change %
Revenues:
Commercial lines net written premiums	$	537			1
Personal lines net written premiums		210			3
Excess & surplus lines net written premiums		21			62
Property casualty net written premiums		768			3
Life and accident and health net written premiums		48			9
Annuity net written premiums		29			(43	)
Life, annuity and accident and health net written premiums		77			(19	)
Commercial lines net earned premiums		533			(1	)
Personal lines net earned premiums		180			1
Excess & surplus lines net earned premiums		17			55
Property casualty net earned premiums		730			0
Fee revenue		1			0
Life and accident and health net earned premiums		43			8
Investment income		132			2
Realized gains on investments		67		nm
Other revenue		2			0
Total revenues		975			11
Income:
Operating loss	$	(93	)	nm
Net realized investment gains and losses		44		nm
Net loss		(49	)	nm
Per share (diluted):
Operating loss	$	(0.57	)	nm
Net realized investment gains and losses		0.27		nm
Net loss		(0.30	)	nm
Book value		31.01			6
Weighted average shares		163,068,516			0

CINF Second-Quarter 2011 Supplemental Financial Data

Cincinnati Financial Corporation

Quick Reference - Second Quarter 2011

(all data shown is for the three months ended or as of June 30, 2011)

	6/30/2011			Year over year change %
Benefits and expenses:
Commercial lines loss and loss expenses	$	483			27
Personal lines loss and loss expenses		269			65
Excess & surplus lines loss and loss expenses		7			(36	)
Life and accident and health losses and policy benefits		44			2
Underwriting, acquisition and insurance expenses		251			2
Other operating expenses		6			100
Interest expenses		14			8
Total benefits & expenses		1,072			25
Loss before income taxes		(97	)	nm
Total income tax		(48	)	nm
Balance Sheet:
Fixed maturity investments	$	8,717
Equity securities		2,971
Other invested assets		69
Total invested assets	$	11,757
Equity in net assets of subsidiaries	$	4,742
Loss and loss expense reserves	$	4,535
Total debt		839
Shareholders' equity		5,057
Key ratios:
Commercial lines GAAP combined ratio		124.2	%
Personal lines GAAP combined ratio		179.2
Excess & surplus lines GAAP combined ratio		74.7
Property casualty GAAP combined ratio		136.6
Commercial lines STAT combined ratio		123.0	%
Personal lines STAT combined ratio		178.4
Excess & surplus lines STAT combined ratio		68.7
Property casualty STAT combined ratio		135.4
Value creation ratio		0.1	%

CINF Second-Quarter 2011 Supplemental Financial Data

Cincinnati Financial Corporation

Consolidated Statements of Income for the Six Months Ended June 30, 2011

(In millions)	CFC			CONSOL P&C			CLIC			CFC-I			ELIM			Total
Revenues:
Premiums earned:
Property casualty	$	-		$	1,594		$	-		$	-		$	-		$	1,594
Life		-			-			102			-			-			102
Accident health		-			-			3			-			-			3
Premiums ceded		-			(119	)		(25	)		-			-			(144	)
Total earned premium		-			1,475			80			-			-			1,555
Investment income		20			176			67			-			-			263
Realized gain on investments		8			94			(24	)		1			-			79
Fee revenue		-			2			-			-			-			2
Other revenue		7			1			1			4			(8	)		5
Total revenues	$	35		$	1,748		$	124		$	5		$	(8	)	$	1,904
Benefits & expenses:
Losses & policy benefits	$	-		$	1,531		$	109		$	-		$	(2	)	$	1,638
Reinsurance recoveries		-			(242	)		(20	)		-			-			(262	)
Underwriting, acquisition and insurance expenses		-			482			30			-			-			512
Other operating expenses		13			-			-			2			(5	)		10
Interest expense		26			-			-			1			-			27
Total expenses	$	39		$	1,771		$	119		$	3		$	(7	)	$	1,925
Income (loss) before income taxes	$	(4	)	$	(23	)	$	5		$	2		$	(1	)	$	(21	)
Provision (benefit) for income taxes:
Current operating income	$	(10	)	$	(58	)	$	14		$	-		$	-		$	(54	)
Capital gains/losses		3			33			(8	)		-			-			28
Deferred		2			(7	)		(3	)		-			-			(8	)
Total provision (benefit) for income taxes	$	(5	)	$	(32	)	$	3		$	-		$	-		$	(34	)
Operating income (loss)	$	(4	)	$	(52	)	$	18		$	1		$	(1	)	$	(38	)
Net income - current year	$	1		$	9		$	2		$	2		$	(1	)	$	13
Net income (loss) - prior year	$	(3	)	$	82		$	16		$	(1	)	$	1		$	95

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

CINF Second-Quarter 2011 Supplemental Financial Data

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Three Months Ended June 30, 2011

(In millions)	CFC			CONSOL P&C			CLIC			CFC-I		ELIM			Total
Revenues:
Premiums earned:
Property casualty	$	-		$	809		$	-		$	-	$	-		$	809
Life		-			-			54			-		-			54
Accident health		-			-			2			-		-			2
Premiums ceded		-			(79	)		(13	)		-		-			(92	)
Total earned premium		-			730			43			-		-			773
Investment income		10			88			34			-		-			132
Realized gain (loss) on investments		5			57			5			-		-			67
Fee revenue		-			1			-			-		-			1
Other revenue		3			-			1			2		(4	)		2
Total revenues	$	18		$	876		$	83		$	2	$	(4	)	$	975
Benefits & expenses:
Losses & policy benefits	$	-		$	988		$	56		$	-	$	(1	)	$	1,043
Reinsurance recoveries		-			(229	)		(12	)		-		(1	)		(242	)
Underwriting, acquisition and insurance expenses		-			237			14			-		-			251
Other operating expenses		7			-			-			1		(2	)		6
Interest expense		13			-			-			1		-			14
Total expenses	$	20		$	996		$	58		$	2	$	(4	)	$	1,072
Income (loss) before income taxes	$	(2	)	$	(120	)	$	25		$	-	$	-		$	(97	)
Provision (benefit) for income taxes:
Current operating income	$	(7	)	$	(70	)	$	4		$	-	$	-		$	(73	)
Capital gains/losses		2			19			2			-		-			23
Deferred		3			(4	)		3			-		-			2
Total provision (benefit) for income taxes	$	(2	)	$	(55	)	$	9		$	-	$	-		$	(48	)
Operating income (loss)	$	(3	)	$	(103	)	$	13		$	-	$	-		$	(93	)
Net income (loss) - current year	$	-		$	(65	)	$	16		$	-	$	-		$	(49	)
Net income - prior year	$	(6	)	$	24		$	9		$	-	$	-		$	27

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

CINF Second-Quarter 2011 Supplemental Financial Data

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)			$	5,954	$	5,850	$	5,818		$	5,924	$	5,804		$	5,759
Equities (fair value)				2,113		2,203		2,175			1,928		1,862			2,013
Short-term investments (fair value)				-		-		-			-		-			-
Fixed maturities - pretax net unrealized gain (loss)				388		320		314			494		363			287
Equities - pretax net unrealized gain				631		670		604			476		457			635
Loss and loss expense reserves - STAT				3,903		3,788		3,756			3,799		3,781			3,689
Equity GAAP				4,702		4,721		4,656			4,652		4,429			4,506
Surplus - STAT				3,743		3,833		3,777			3,641		3,537			3,692
The Cincinnati Life Insurance Company
Fixed maturities (fair value)			$	2,528	$	2,449	$	2,315		$	1,867	$	1,859		$	2,055
Equities (fair value)				37		102		103			108		100			114
Short-term investments (fair value)				-		-		-			-		-			-
Fixed maturities - pretax net unrealized gain (loss)				174		149		148			215		154			110
Equities - pretax net unrealized gain (loss)				19		25		(4	)		1		(7	)		7
Equity - GAAP				783		756		748			775		729			700
Surplus - STAT				309		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

CINF Second-Quarter 2011 Supplemental Financial Data

Consolidated Cincinnati Insurance Companies

Statutory Statements of Income

	For the Three Months Ended June 30,												For the Six Months Ended June 30,
(Dollars in millions)	2011			2010			Change			% Change			2011			2010			Change			% Change
Underwriting income
Net premiums written	$	769		$	750		$	19			3		$	1,547		$	1,505		$	42			3
Unearned premiums increase		39			22			17			77			72			69			3			4
Earned premiums	$	730		$	728		$	2			0		$	1,475		$	1,436		$	39			3
Losses incurred	$	666		$	475		$	191			40		$	1,100		$	859		$	241			28
Allocated loss expenses incurred		51			41			10			24			96			84			12			14
Unallocated loss expenses incurred		43			38			5			13			93			85			8			9
Other underwriting expenses incurred		247			231			16			7			484			485			(1	)	nm
Workers compensation dividend incurred		(7	)		3			(10	)	nm				8			7			1			14
Total underwriting deductions	$	1,000		$	788		$	212			27		$	1,781		$	1,520		$	261			17
Net underwriting losses	$	(270	)	$	(60	)	$	(210	)		(350	)	$	(306	)	$	(84	)	$	(222	)		(264	)
Investment income
Gross investment income earned	$	91		$	90		$	1			1		$	182		$	180		$	2			1
Net investment income earned		90			88			2			2			180			177			3			(264	)
Net realized capital gains		38			(8	)		46		nm				61			(6	)		67		nm
Net investment gains (excl. subs)	$	128		$	80		$	48			60		$	241		$	171		$	70			41
Dividend from subsidiary		-			-			-			-			-			-			-			-
Net investment gains (net of tax)	$	128		$	80		$	48			60		$	241		$	171		$	70			41
Other income	$	1		$	1		$	-		nm			$	2		$	2		$	-		nm
Net income before federal income taxes	$	(141	)	$	21		$	(162	)	nm			$	(63	)	$	89		$	(152	)	nm
Federal and foreign income taxes incurred	$	(70	)	$	9		$	(79	)	nm			$	(57	)	$	26		$	(83	)	nm
Net income (loss) (statutory)	$	(71	)	$	12		$	(83	)	nm			$	(6	)	$	63		$	(69	)	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.

* Excludes CSU Producers Resources Inc.

CINF Second-Quarter 2011 Supplemental Financial Data

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
New losses greater than $4,000,000				$	6	$	11	$	15		$	17	$	11	$	6	$	16	$	17		$	34		$	49
New losses $1,000,000-$4,000,000					33		50		43			36		29		35		83		64			100			142
New losses $250,000-$1,000,000					51		54		47			46		53		52		106		104			150			200
Case reserve development above $250,000					51		34		45			66		30		37		85		68			134			178
Large losses subtotal				$	141	$	149	$	150		$	165	$	123	$	130	$	290	$	253		$	418		$	569
IBNR incurred					18		32		18			16		11		12		51		23			41			59
Catastrophe losses incurred					289		41		5			28		100		15		330		114			143			148
Remaining incurred					218		213		184			228		239		228		430		468			694			876
Total losses incurred				$	666	$	435	$	357		$	437	$	473	$	385	$	1,101	$	858		$	1,296		$	1,652
Commercial Lines
New losses greater than $4,000,000				$	6	$	11	$	10		$	17	$	11	$	6	$	16	$	17		$	34		$	44
New losses $1,000,000-$4,000,000					30		40		38			28		22		32		70		54			82			120
New losses $250,000-$1,000,000					39		37		31			37		40		40		77		80			117			148
Case reserve development above $250,000					46		31		41			62		29		32		77		61			123			164
Large losses subtotal				$	121	$	119	$	120		$	144	$	102	$	110	$	240	$	212		$	356		$	476
IBNR incurred					11		24		19			10		7		9		35		17			27			45
Catastrophe losses incurred					157		26		5			17		57		10		183		66			84			89
Remaining incurred					124		131		97			141		152		152		255		304			444			542
Total losses incurred				$	413	$	300	$	241		$	312	$	318	$	281	$	713	$	599		$	911		$	1,152
Personal Lines
New losses greater than $4,000,000				$	-	$	-	$	5		$	-	$	-	$	-	$	-	$	-		$	-		$	5
New losses $1,000,000-$4,000,000					3		9		5			5		7		3		13		10			15			20
New losses $250,000-$1,000,000					10		14		14			7		10		10		23		20			27			41
Case reserve development above $250,000					4		3		3			4		1		3		7		4			8			11
Large losses subtotal				$	17	$	26	$	27		$	16	$	18	$	16	$	43	$	34		$	50		$	77
IBNR incurred					4		4		1			4		2		1		9		2			7			8
Catastrophe losses incurred					131		14		(1	)		11		43		5		145		48			59			58
Remaining incurred					91		80		86			84		83		75		170		159			243			328
Total losses incurred				$	243	$	124	$	113		$	115	$	146	$	97	$	367	$	243		$	359		$	471
Excess & Surplus Lines
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					2		3		2			2		3		2		6		5			6			9
Case reserve development above $250,000					1		-		1			-		-		2		1		2			3			3
Large losses subtotal				$	3	$	4	$	3		$	5	$	3	$	4	$	7	$	7		$	12		$	15
IBNR incurred					3		4		(2	)		2		2		2		7		5			7			4
Catastrophe losses incurred					1		1		1			-		-		-		2		-			-			1
Remaining incurred					3		2		1			3		4		1		5		4			7			9
Total losses incurred				$	10	$	11	$	3		$	10	$	9	$	7	$	21	$	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.

CINF Second-Quarter 2011 Supplemental Financial Data

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
New losses greater than $4,000,000				0.8	%		1.4	%		2.0	%		2.3	%		1.5	%		0.8	%		1.1	%		1.2	%			1.6	%			1.7	%
New losses $1,000,000-$4,000,000				4.6			6.7			5.7			4.8			4.0			4.9			5.6			4.6				4.6				4.9
New losses $250,000-$1,000,000				7.0			7.3			6.7			6.2			7.2			7.4			7.2			7.2				6.9				6.8
Case reserve development above $250,000				6.9			4.6			5.9			8.9			4.2			5.3			5.8			4.7				6.2				6.1
Large losses subtotal				19.3	%		20.0	%		20.3	%		22.2	%		16.9	%		18.4	%		19.7	%		17.7	%			19.3	%			19.5	%
IBNR incurred				2.5			4.4			2.5			2.3			1.6			1.7			3.4			1.6				1.8				2.0
Total catastrophe losses incurred				39.6			5.5			0.7			3.8			13.6			2.1			22.3			7.9				6.5				5.1
Remaining incurred				29.8			28.5			24.4			30.5			33.0			32.1			29.2			32.6				31.9				30.0
Total loss ratio				91.2	%		58.4	%		47.9	%		58.8	%		65.1	%		54.3	%		74.6	%		59.8	%			59.5	%			56.6	%
Commercial Lines
New losses greater than $4,000,000				1.1	%		1.9	%		1.8	%		3.1	%		2.0	%		1.1	%		1.5	%		1.6	%			2.1	%			2.0	%
New losses $1,000,000-$4,000,000				5.5			7.5			7.0			5.1			4.1			6.1			6.5			5.1				5.1				5.6
New losses $250,000-$1,000,000				7.4			6.9			5.8			6.7			7.4			7.7			7.1			7.5				7.3				6.9
Case reserve development above $250,000				8.7			5.7			7.4			11.4			5.4			6.2			7.2			5.8				7.7				7.6
Large losses subtotal				22.7	%		22.0	%		22.0	%		26.3	%		18.9	%		21.1	%		22.3	%		20.0	%			22.2	%			22.1	%
IBNR incurred				2.0			4.4			3.3			1.9			1.3			1.8			3.3			1.6				1.7				2.1
Total catastrophe losses incurred				29.6			4.9			1.0			3.2			10.5			1.8			17.1			6.2				5.2				4.1
Remaining incurred				23.3			24.2			17.8			25.7			28.3			29.0			23.7			28.6				27.6				25.2
Total loss ratio				77.6	%		55.5	%		44.1	%		57.1	%		59.0	%		53.7	%		66.4	%		56.4	%			56.7	%			53.5	%
Personal Lines
New losses greater than $4,000,000				0.0	%		0.0	%		2.7	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%			0.0	%			0.7	%
New losses $1,000,000-$4,000,000				2.0			4.8			2.3			2.8			4.4			1.5			3.5			3.0				2.9				2.8
New losses $250,000-$1,000,000				5.4			7.1			7.8			4.0			5.6			5.5			6.2			5.6				5.0				5.7
Case reserve development above $250,000				2.3			1.7			1.8			2.0			0.6			1.9			2.0			1.2				1.5				1.6
Large losses subtotal				9.7	%		13.6	%		14.6	%		8.8	%		10.6	%		8.9	%		11.7	%		9.8	%			9.4	%			10.8	%
IBNR incurred				2.4			2.3			0.8			2.4			0.9			0.3			2.3			0.6				1.2				1.1
Total catastrophe losses incurred				73.0			7.4			(0.3	)		6.0			23.8			3.0			39.2			13.5				11.0				8.1
Remaining incurred				50.6			41.6			45.3			46.0			47.1			43.1			46.0			45.1				45.4				45.4
Total loss ratio				135.7	%		64.9	%		60.4	%		63.2	%		82.4	%		55.3	%		99.2	%		69.0	%			67.0	%			65.4	%
Excess & Surplus Lines
New losses greater than $4,000,000				0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%			0.0	%			0.0	%
New losses $1,000,000-$4,000,000				0.0			0.0			0.0			19.4			0.0			0.0			0.0			0.0				7.1				5.1
New losses $250,000-$1,000,000				12.4			25.8			17.5			16.7			18.8			16.9			18.7			19.9				18.7				18.4
Case reserve development above $250,000				2.5			2.7			1.8			2.5			2.7			20.7			2.6			11.6				13.1				14.2
Large losses subtotal				14.9	%		28.5	%		19.3	%		38.6	%		21.5	%		37.6	%		21.3	%		31.5	%			38.9	%			37.7	%
IBNR incurred				17.1			26.1			(13.2	)		14.9			23.5			18.4			21.3			23.7				18.5				9.6
Total catastrophe losses incurred				4.2			2.8			(0.1	)		4.6			0.0			0.0			3.6			0.0				1.7				1.2
Remaining incurred				13.4			20.2			14.7			14.2			32.5			9.4			16.6			18.3				18.8				17.4
Total loss ratio				49.6	%		77.6	%		20.7	%		72.3	%		77.5	%		65.4	%		62.8	%		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.

CINF Second-Quarter 2011 Supplemental Financial Data

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
New losses greater than $4,000,000				1		2		3		3		2		1		3		3			6			9
New losses $1,000,000-$4,000,000				18		30		23		20		18		19		48		37			57			80
New losses $250,000-$1,000,000				122		122		123		112		117		123		244		240			352			475
Case reserve development above $250,000				81		68		71		101		73		77		149		143			237			308
Large losses total				222		222		220		236		210		220		444		423			652			872
Commercial Lines
New losses greater than $4,000,000				1		2		2		3		2		1		3		3			6			8
New losses $1,000,000-$4,000,000				15		24		20		15		12		17		39		29			44			64
New losses $250,000-$1,000,000				97		85		79		88		88		95		182		183			271			350
Case reserve development above $250,000				70		59		70		93		70		67		129		137			230			300
Large losses total				183		170		171		199		172		180		353		352			551			722
Personal Lines
New losses greater than $4,000,000				-		-		1		-		-		-		-		-			-			1
New losses $1,000,000-$4,000,000				3		6		3		3		6		2		9		8			11			14
New losses $250,000-$1,000,000				20		29		38		19		24		24		49		48			67			105
Case reserve development above $250,000				10		8		-		7		2		5		18		7			14			23
Large losses total				33		43		42		29		32		31		76		63			92			143
Excess & Surplus Lines
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				5		8		6		5		5		4		13		9			14			20
Case reserve development above $250,000				1		1		1		1		1		5		2		6			7			8
Large losses total				6		9		7		8		6		9		15		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.

CINF Second-Quarter 2011 Supplemental Financial Data

Consolidated Cincinnati Insurance Companies

Agency Direct Written Premiums by Agency State by Line of Business for the Six Months Ended June 30, 2011

(Dollars in millions)	Commercial Lines														Personal Lines								Consolidated				Comm'l			Personal			E & S			Consol
Risk	Comm		Comm		Comm		Workers'		Spec		Surety &		Mach. &		Personal		Home		Other		E & S		2011		2010		Change			Change			Change			Change
State	Casualty		Property		Auto		Comp		Packages		Exec Risk		Equipment		Auto		Owner		Personal		Lines		Total		Total		%			%			%			%
OH	$	65.5	$	50.0	$	31.9	$	-	$	10.2	$	11.9	$	2.8	$	61.0	$	45.4	$	16.3	$	5.2	$	299.7	$	290.0		2.3			4.1			40.2			3.5
IL		29.2		21.3		15.0		27.1		5.6		4.0		1.5		14.3		11.1		3.7		2.7		135.5		132.0		0.5			9.1			23.1			2.6
IN		23.3		18.9		11.9		14.2		4.1		3.2		1.4		15.0		14.3		3.9		3.7		114.0		104.1		8.4			10.4			26.1			9.5
PA		24.8		16.0		16.8		25.7		5.3		3.3		1.1		4.1		3.2		1.8		1.8		104.0		100.8		2.0			10.6			28.6			3.0
GA		12.8		11.0		9.0		6.2		4.0		3.0		0.6		16.7		15.7		4.6		2.4		86.0		83.2		(0.4	)		7.5			21.7			3.4
NC		15.2		13.1		9.9		9.1		7.5		3.6		0.9		7.5		5.5		2.6		1.5		76.4		72.3		(1.9	)		44.1			47.3			5.7
MI		15.5		10.8		7.6		8.1		4.8		2.9		0.9		8.2		7.7		1.8		1.7		70.1		65.3		3.3			19.6			22.2			7.4
VA		14.9		12.1		9.8		8.8		2.4		2.7		0.7		4.7		3.9		1.4		1.2		62.7		64.1		(3.5	)		1.7			30.5			(2.2	)
KY		10.7		11.5		7.4		1.9		3.0		1.4		0.5		12.0		9.3		2.6		1.5		61.7		57.9		4.1			9.5			34.4			6.7
TN		12.3		10.8		7.6		4.6		5.2		2.6		0.8		5.6		6.0		2.1		0.7		58.2		55.5		2.0			16.3			(4.9	)		4.9
WI		12.7		8.4		5.7		14.2		1.9		1.5		0.8		4.5		3.9		1.7		1.2		56.7		57.5		(3.7	)		5.7			29.5			(1.6	)
AL		8.4		9.7		3.7		0.4		4.3		1.2		0.5		8.5		13.4		3.0		1.5		54.8		51.7		2.2			7.6			74.5			5.8
MO		10.2		9.6		6.2		5.8		3.1		1.1		0.6		2.3		3.1		0.7		2.1		44.9		43.8		(2.2	)		20.3			68.8			2.4
FL		11.6		11.0		4.3		0.5		0.9		1.0		0.4		4.6		6.1		1.3		1.4		43.0		44.6		(2.0	)		(10.6	)		45.8			(3.6	)
MN		10.8		8.8		4.6		4.1		1.8		1.0		0.7		4.3		4.1		1.2		0.9		42.3		39.7		4.2			15.1			21.1			6.8
IA		9.9		6.7		4.8		9.7		2.0		1.5		0.7		2.2		2.2		0.9		0.7		41.2		41.4		(3.1	)		17.5			39.1			(0.3	)
NY		16.3		5.3		6.4		1.2		0.7		1.4		0.4		-		-		0.6		0.5		32.7		32.5		(1.5	)	nm				26.4			0.5
TX		10.1		8.0		6.1		1.0		0.4		0.6		0.6		-		-		-		3.1		29.8		19.4		48.5			62.4			117.9			53.6
MD		6.4		3.9		5.2		4.4		0.7		1.1		0.3		0.6		1.1		0.3		0.7		24.7		23.2		4.4			36.9			10.1			6.6
KS		4.0		4.2		2.4		4.1		1.7		0.8		0.3		2.4		3.0		0.7		0.4		23.9		24.1		(3.9	)		6.9			40.6			(0.9	)
AR		4.1		5.6		2.9		1.6		2.5		1.1		0.3		1.9		2.1		0.7		0.9		23.6		22.2		1.3			21.6			61.1			6.2
AZ		5.3		3.7		4.2		0.8		0.4		0.6		0.3		0.8		0.8		0.2		0.8		17.9		16.7		2.4			45.3			47.0			7.0
SC		4.6		3.7		2.8		1.7		1.3		1.0		0.1		1.2		0.8		0.3		0.3		17.7		19.2		(13.9	)		66.8			(2.6	)		(7.8	)
UT		4.8		2.4		2.8		-		0.3		1.4		0.2		2.3		1.0		0.2		0.6		16.0		14.6		(0.8	)		82.1			(17.1	)		9.4
MT		5.6		3.1		3.3		-		0.5		0.3		0.2		0.9		0.8		0.2		0.2		15.1		15.7		(7.3	)		33.7			(22.0	)		(3.8	)
NE		3.2		2.9		1.8		3.0		0.8		0.8		0.2		0.4		0.5		0.2		0.7		14.3		14.7		(6.0	)		5.3			106.4			(2.8	)
ID		3.9		2.7		2.8		0.1		0.5		0.6		0.2		0.9		0.5		0.1		0.3		12.5		11.3		5.0			74.5			36.6			11.0
VT		2.2		1.7		1.5		3.7		0.5		0.5		0.1		0.6		0.6		0.2		0.2		11.8		10.8		6.5			38.7			33.5			9.8
WV		3.0		2.4		2.3		0.8		1.1		0.4		0.1		-		0.3		0.1		0.8		11.5		11.1		2.3			3.8			23.8			3.6
ND		3.0		1.8		1.5		-		0.5		0.5		0.1		0.3		0.3		0.1		0.1		8.2		7.2		12.6			17.4			83.7			13.6
CO		2.2		2.2		1.8		0.2		-		0.4		0.1		-		0.1		-		0.4		7.4		5.1		43.2			7.2			58.7			43.3
NH		1.4		1.1		0.7		1.5		0.3		0.5		0.1		0.5		0.5		0.2		0.3		7.1		6.6		3.5			35.6			11.5			8.4
SD		1.3		1.1		0.9		1.6		0.2		0.2		0.1		-		-		-		0.2		5.6		5.0		9.7			9.1			171.5			11.6
WA		1.6		0.9		1.3		-		-		0.3		0.1		-		-		-		0.3		4.5		3.0		46.0			(8.2	)		139.0			49.9
NM		1.5		0.7		0.8		0.3		0.1		0.5		-		-		-		-		0.2		4.1		3.5		20.1		nm				(20.6	)		17.3
DE		0.9		0.9		0.8		0.8		0.2		0.1		0.1		-		-		-		-		3.7		4.6		(19.1	)		8.8		nm				(19.1	)
OR		0.8		0.4		0.7		0.1		-		0.1		-		-		-		-		0.2		2.4		0.2	nm				65.6		nm			nm
WY		0.4		0.2		0.1		-		-		0.1		-		-		-		-		0.2		1.0		0.4		88.3			5.1		nm				117.8
CT		0.3		0.2		0.2		0.2		-		0.1		-		-		-		-		-		1.0		0.2		318.4			17.4		nm				325.5
All Other		1.1		1.3		0.9		1.7		0.1		0.8		-		-		-		-		0.2		6.2		6.2		(3.9	)		75.3		nm				(0.5	)
Total	$	375.8	$	290.4	$	210.1	$	168.9	$	78.9	$	60.1	$	19.1	$	188.2	$	167.2	$	53.6	$	41.7	$	1,653.9	$	1,581.4		2.0			10.0			38.7			4.6
Other Direct		-		0.5		-		1.8		-		-		-		0.1		0.1		-		-		2.5		2.6		(6.2	)		36.5		nm				(4.3	)
Total Direct	$	375.8	$	290.9	$	210.1	$	170.7	$	78.9	$	60.1	$	19.1	$	188.3	$	167.3	$	53.6	$	41.7	$	1,656.4	$	1,584.0		2.0			10.0			38.7			4.6

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.

CINF Second-Quarter 2011 Supplemental Financial Data

Quarterly Property Casualty Data - Commercial 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
Commercial casualty:
Written premiums			$	177		$	189		$	166		$	161		$	168		$	191		$	366		$	359			$	520			$	686
Earned premiums				180			172			175			182			172			164			352			336				518				693
Current accident year before catastrophe losses				66.0	%		78.8	%		100.3	%		75.0	%		73.6	%		71.0	%		72.3	%		72.4	%			73.3	%			80.1	%
Current accident year catastrophe losses				-			-			-			-			-			-			-			-				-				-
Prior accident years before catastrophe losses				(27.2	)		(32.3	)		(50.5	)		(18.5	)		(25.3	)		(12.7	)		(29.7	)		(19.2	)			(18.9	)			(26.9	)
Prior accident years catastrophe losses				-			-			-			-			-			-			-			-				-				-
Total loss and loss expense ratio				38.8	%		46.5	%		49.8	%		56.5	%		48.3	%		58.3	%		42.6	%		53.2	%			54.4	%			53.2	%
Commercial property:
Written premiums			$	123		$	132		$	122		$	122		$	124		$	129		$	255		$	253			$	375			$	497
Earned premiums				115			126			124			123			121			121			241			242				365				489
Current accident year before catastrophe losses				76.8	%		64.8	%		54.6	%		60.5	%		56.5	%		62.2	%		70.5	%		59.4	%			59.7	%			58.4	%
Current accident year catastrophe losses				78.8			15.2			2.0			10.3			39.1			10.6			45.6			24.8				20.0				15.4
Prior accident years before catastrophe losses				(1.7	)		8.0			(1.2	)		1.3			(3.1	)		0.5			3.4			(1.4	)			(0.4	)			(0.6	)
Prior accident years catastrophe losses				1.1			3.4			0.3			(1.3	)		(2.4	)		(2.3	)		2.3			(2.3	)			(2.0	)			(1.4	)
Total loss and loss expense ratio				155.0	%		91.4	%		55.7	%		70.8	%		90.1	%		71.0	%		121.8	%		80.5	%			77.3	%			71.8	%
Commercial auto:
Written premiums			$	102		$	107		$	92		$	91		$	99		$	103		$	209		$	202			$	293			$	385
Earned premiums				96			96			97			96			96			95			192			191				287				384
Current accident year before catastrophe losses				72.6	%		76.5	%		75.5	%		67.1	%		69.5	%		68.1	%		74.5	%		68.8	%			68.2	%			70.0	%
Current accident year catastrophe losses				6.2			0.3			0.4			(0.5	)		4.4			-			3.3			2.2				1.3				1.1
Prior accident years before catastrophe losses				(11.0	)		(24.2	)		(20.8	)		(5.3	)		(0.8	)		(6.1	)		(17.6	)		(3.4	)			(4.0	)			(8.2	)
Prior accident years catastrophe losses				(0.1	)		(0.4	)		-			-			(0.2	)		(1.0	)		(0.2	)		(0.6	)			(0.4	)			(0.3	)
Total loss and loss expense ratio				67.7	%		52.2	%		55.1	%		61.3	%		72.9	%		61.0	%		60.0	%		67.0	%			65.1	%			62.6	%
Workers' compensation:
Written premiums			$	73		$	90		$	75		$	68		$	72		$	95		$	163		$	167			$	235			$	310
Earned premiums				81			76			81			77			79			74			157			153				230				311
Current accident year before catastrophe losses				108.5	%		95.6	%		92.5	%		127.5	%		103.2	%		103.3	%		102.3	%		103.2	%			111.3	%			106.5	%
Current accident year catastrophe losses				-			-			-			-			-			-			-			-				-				-
Prior accident years before catastrophe losses				(28.9	)		(4.1	)		(9.8	)		(15.3	)		(13.3	)		(11.9	)		(16.9	)		(12.6	)			(13.5	)			(12.6	)
Prior accident years catastrophe losses				-			-			-			-			-			-			-			-				-				-
Total loss and loss expense ratio				79.6	%		91.5	%		82.7	%		112.2	%		89.9	%		91.4	%		85.4	%		90.6	%			97.8	%			93.9	%
Specialty package:
Written premiums			$	27		$	37		$	37		$	37		$	36		$	39		$	64		$	75			$	112			$	149
Earned premiums				27			37			37			38			37			37			64			74				112				149
Current accident year before catastrophe losses				93.8	%		62.7	%		47.1	%		60.8	%		66.1	%		70.5	%		75.7	%		68.2	%			65.8	%			61.1	%
Current accident year catastrophe losses				223.8			9.2			7.2			18.9			23.0			8.5			99.4			15.9				16.8				14.5
Prior accident years before catastrophe losses				1.8			15.1			(19.1	)		9.6			(0.7	)		17.4			9.5			8.3				8.7				1.8
Prior accident years catastrophe losses				(0.7	)		(1.5	)		(0.3	)		(0.2	)		(2.8	)		(7.4	)		(1.1	)		(5.1	)			(3.4	)			(2.6	)
Total loss and loss expense ratio				318.7	%		85.5	%		34.9	%		89.1	%		85.6	%		89.0	%		183.5	%		87.3	%			87.9	%			74.8	%
Surety and executive risk:
Written premiums			$	26		$	24		$	23		$	23		$	24		$	23		$	50		$	47			$	70			$	93
Earned premiums				25			25			24			22			25			24			50			49				71				95
Current accident year before catastrophe losses				47.9	%		54.7	%		75.7	%		91.2	%		53.9	%		47.1	%		51.3	%		50.5	%			63.4	%			66.5	%
Current accident year catastrophe losses				-			-			-			-			-			-			-			-				-				-
Prior accident years before catastrophe losses				19.4			41.4			43.8			(17.3	)		(17.7	)		4.0			30.2			(6.9	)			(10.2	)			3.4
Prior accident years catastrophe losses				-			-			-			-			-			-			-			-				-				-
Total loss and loss expense ratio				67.3	%		96.1	%		119.5	%		73.9	%		36.2	%		51.1	%		81.5	%		43.6	%			53.2	%			69.9	%
Machinery and equipment:
Written premiums			$	9		$	9		$	9		$	9		$	9		$	9		$	18		$	17			$	26			$	35
Earned premiums				9			8			8			9			8			8			17			16				25				33
Current accident year before catastrophe losses				32.0	%		28.2	%		21.4	%		20.4	%		48.3	%		23.0	%		30.1	%		35.8	%			30.6	%			28.2	%
Current accident year catastrophe losses				0.2			0.2			(0.3	)		(1.7	)		1.7			0.3			0.2			1.0				0.1				-
Prior accident years before catastrophe losses				6.9			8.5			(3.3	)		(6.8	)		1.8			(15.9	)		7.7			(6.9	)			(6.9	)			(6.0	)
Prior accident years catastrophe losses				-			-			0.0			-			0.1			(1.3	)		-			(0.6	)			(0.4	)			(0.3	)
Total loss and loss expense ratio				39.1	%		36.9	%		17.8	%		11.9	%		51.9	%		6.1	%		38.0	%		29.3	%			23.4	%			21.9	%

* 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.

CINF Second-Quarter 2011 Supplemental Financial Data

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
Personal auto:
Written premiums			$	104		$	82		$	84		$	98		$	97		$	73		$	186		$	170			$	268			$	352
Earned premiums				90			89			87			86			83			81			179			164				250				337
Current accident year before catastrophe losses				67.3	%		68.2	%		81.0	%		68.3	%		70.8	%		62.8	%		67.7	%		66.8	%			67.3	%			70.9	%
Current accident year catastrophe losses				10.3			1.3			-			0.2			4.2			0.1			5.8			2.2				1.5				1.1
Prior accident years before catastrophe losses				(5.0	)		(5.3	)		(2.4	)		(0.3	)		(1.2	)		(4.5	)		(5.1	)		(2.8	)			(1.9	)			(2.1	)
Prior accident years catastrophe losses				(0.1	)		(0.4	)		(0.1	)		(0.1	)		(0.2	)		(0.2	)		(0.2	)		(0.2	)			(0.2	)			(0.1	)
Total loss and loss expense ratio				72.5	%		63.8	%		78.5	%		68.1	%		73.6	%		58.2	%		68.2	%		66.0	%			66.7	%			69.8	%
Homeowner:
Written premiums			$	78		$	68		$	75		$	83		$	81		$	60		$	146		$	141			$	224			$	299
Earned premiums				66			76			74			72			72			70			142			142				214				289
Current accident year before catastrophe losses				97.8	%		71.4	%		78.0	%		72.0	%		70.2	%		67.2	%		83.6	%		68.6	%			69.8	%			72.0	%
Current accident year catastrophe losses				175.4			22.1			0.9			15.5			54.2			7.2			92.7			30.9				25.8				19.3
Prior accident years before catastrophe losses				(0.5	)		2.6			(5.0	)		(0.9	)		0.8			1.9			1.1			1.3				0.6				(0.9	)
Prior accident years catastrophe losses				(0.1	)		(5.8	)		(1.8	)		(2.1	)		(1.4	)		(0.3	)		(3.1	)		(0.8	)			(1.3	)			(1.4	)
Total loss and loss expense ratio				272.6	%		90.3	%		72.1	%		84.5	%		123.8	%		76.0	%		174.3	%		100.0	%			94.9	%			89.0	%
Other personal:
Written premiums			$	28		$	23		$	24		$	27		$	26		$	22		$	51		$	48			$	75			$	99
Earned premiums				24			25			24			24			24			23			49			47				71				95
Current accident year before catastrophe losses				88.2	%		55.9	%		60.9	%		70.1	%		69.1	%		56.1	%		71.9	%		62.6	%			65.1	%			64.1	%
Current accident year catastrophe losses				34.5			3.8			1.3			4.7			5.9			3.2			19.0			4.6				4.7				3.8
Prior accident years before catastrophe losses				(18.4	)		2.3			(29.7	)		(24.1	)		(21.4	)		(7.4	)		(7.9	)		(14.4	)			(17.7	)			(20.8	)
Prior accident years catastrophe losses				(0.5	)		(0.8	)		(0.4	)		(0.4	)		(0.6	)		(0.4	)		(0.6	)		(0.5	)			(0.5	)			(0.5	)
Total loss and loss expense ratio				103.8	%		61.2	%		32.1	%		50.3	%		53.0	%		51.5	%		82.4	%		52.3	%			51.6	%			46.6	%

* 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.

CINF Second-Quarter 2011 Supplemental Financial Data

Cincinnati Insurance Companies Consolidated

Loss and Loss Expense Analysis

(In millions)													Change in			Total
			Paid				Change in			Change in			loss			change								Loss
	Paid		loss		Total		case			IBNR			expense			in			Case		IBNR			expense			Total
	losses		expense		paid		reserves			reserves			reserves			reserves			incurred		incurred			incurred			incurred
Gross loss and loss expense incurred at June 30, 2011
Commercial casualty	$	131	$	59	$	190	$	(50	)	$	17		$	(2	)	$	(35	)	$	81	$	17		$	57		$	155
Commercial property		179		22		201		100			52			9			161			279		52			31			362
Commercial auto		122		19		141		(14	)		(3	)		(4	)		(21	)		108		(3	)		15			120
Workers' compensation		108		20		128		9			2			(2	)		9			117		2			18			137
Specialty packages		77		10		87		67			16			5			88			144		16			15			175
Surety and executive risk		36		7		43		(11	)		5			7			1			25		5			14			44
Machinery and equipment		5		-		5		1			-			-			1			6		-			-			6
Total commercial lines		658		137		795		102			89			13			204			760		89			150			999
Personal auto		114		14		128		(2	)		3			2			3			112		3			16			131
Homeowners		210		19		229		42			53			6			101			252		53			25			330
Other personal		26		3		29		7			11			-			18			33		11			3			47
Total personal lines		350		36		386		47			67			8			122			397		67			44			508
Commercial casualty & property		8		2		10		5			7			1			13			13		7			3			23
Total excess & surplus lines		8		2		10		5			7			1			13			13		7			3			23
Total property casualty	$	1,016	$	175	$	1,191	$	154		$	163		$	22		$	339		$	1,170	$	163		$	197		$	1,530
Ceded loss and loss expense incurred at June 30, 2011
Commercial casualty	$	2	$	-	$	2	$	3		$	-		$	-		$	3		$	5	$	1		$	-		$	5
Commercial property		13		2		15		39			15			-			54			52		15			2			69
Commercial auto		1		-		1		2			2			-			4			3		2			-			5
Workers' compensation		5		-		5		(1	)		(1	)		-			(2	)		4		(1	)		-			3
Specialty packages		9		1		10		39			9			-			48			48		9			1			58
Surety and executive risk		11		2		13		(10	)		-			-			(10	)		1		-			2			3
Machinery and equipment		-		-		-		-			-			-			-			-		-			-			-
Total commercial lines		41		5		46		72			25			-			97			113		25			5			143
Personal auto		1		-		1		4			4			-			8			5		4			-			9
Homeowners		11		2		13		43			27			-			70			54		27			2			83
Other personal		1		-		1		4			2			(1	)		5			5		2			(1	)		6
Total personal lines		13		2		15		51			33			(1	)		83			64		33			1			98
Commercial casualty & property		-		-		-		-			1			-			1			-		1			-			1
Total excess & surplus lines		-		-		-		(0	)		1			-			1			-		1			-			1
Total property casualty	$	53	$	7	$	60	$	123		$	59		$	(1	)	$	181		$	176	$	59		$	6		$	241
Net loss and loss expense incurred at June 30, 2011
Commercial casualty	$	129	$	59	$	188	$	(53	)	$	17		$	(2	)	$	(38	)	$	76	$	17		$	57		$	150
Commercial property		166		20		186		61			37			9			107			227		37			29			293
Commercial auto		121		19		140		(16	)		(5	)		(4	)		(25	)		105		(5	)		15			115
Workers' compensation		103		20		123		10			3			(2	)		11			113		3			18			134
Specialty packages		68		9		77		28			7			5			40			96		7			14			117
Surety and executive risk		25		5		30		(1	)		5			7			11			24		5			12			41
Machinery and equipment		5		-		5		1			-			-			1			6		-			-			6
Total commercial lines		617		132		749		30			64			13			107			647		64			145			856
Personal auto		113		14		127		(6	)		(1	)		2			(5	)		107		(1	)		16			122
Homeowners		199		17		216		(1	)		26			6			31			198		26			23			247
Other personal		25		3		28		3			9			1			13			28		9			4			41
Total personal lines		337		34		371		(4	)		33			9			39			333		34			43			410
Commercial casualty & property		8		2		10		5			6			1			12			13		6			3			22
Total excess & surplus lines		8		2		10		5			6			1			12			13		6			3			22
Total property casualty	$	962	$	168	$	1,130	$	31		$	104		$	23		$	158		$	993	$	104		$	191		$	1,289

CINF Second-Quarter 2011 Supplemental Financial Data

Cincinnati Insurance Companies

Catastrophe Detail - April 22-28, 2011 and May 20-27, 2011 events

(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
Consolidated Property Casualty Group
Ceded earned premium reinstatement			$	(38	)						$	(38	)
All other earned premiums				768								768
Total earned premiums			$	730							$	730
Catastrophe gross loss and loss expense incurred				386								386
Catastrophe net loss and loss expense incurred			$	160							$	160
All other net loss and loss expense incurred				599								599
Total net loss and loss expenses incurred			$	759							$	759
Commercial Lines
Ceded earned premium reinstatement			$	(23	)						$	(23	)
All other earned premiums				556								556
Total earned premiums			$	533							$	533
Catastrophe gross loss and loss expense incurred				219								219
Catastrophe net loss and loss expense incurred			$	92							$	92
All other net loss and loss expense incurred				391								391
Total net loss and loss expenses incurred			$	483							$	483
Personal Lines
Ceded earned premium reinstatement			$	(15	)						$	(15	)
All other earned premiums				195								195
Total earned premiums			$	180							$	180
Catastrophe gross loss and loss expense incurred				167								167
Catastrophe net loss and loss expense incurred			$	68							$	68
All other net loss and loss expense incurred				201								201
Total net loss and loss expenses incurred			$	269							$	269
Excess & Surplus Lines
Ceded earned premium reinstatement			$	-							$	-
All other earned premiums				-								-
Total earned premiums			$	-							$	-
Catastrophe gross loss and loss expense incurred				-								-
Catastrophe net loss and loss expense incurred			$	-							$	-
All other net loss and loss expense incurred				-								-
Total net loss and loss expenses incurred			$	-							$	-

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

* nm - Not meaningful

CINF Second-Quarter 2011 Supplemental Financial Data

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Consolidated

(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/11	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			$	717		$	708		$	648		$	677		$	685		$	682		$	1,425		$	1,367			$	2,044			$	2,692
Agency new business written premiums				117			102			107			109			106			92			219			198				307				414
Other written premiums				(66	)		(31	)		(33	)		(50	)		(42	)		(18	)		(97	)		(60	)			(110	)			(143	)
Reported written premiums – statutory*			$	768		$	779		$	722		$	736		$	749		$	756		$	1,547		$	1,505			$	2,241			$	2,963
Unearned premium change				(38	)		(34	)		23			7			(21	)		(48	)		(72	)		(69	)			(62	)			(39	)
Earned premiums			$	730		$	745		$	745		$	743		$	728		$	708		$	1,475		$	1,436			$	2,179			$	2,924
Year over year change %
Agency renewal written premiums				5	%		4	%		2	%		1	%		3	%		(2	) %		4	%		0	%			1	%			1	%
Agency new business written premiums				10			11			14			2			(1	)		(5	)		11			(3	)			(1	)			2
Other written premiums				(57	)		(72	)		33			(9	)		16			(29	)		(62	)		6				0				10
Reported written premiums – statutory*				3			3			6			1			4			(3	)		3			0				0				2
Paid losses and loss expenses
Losses paid			$	560		$	404		$	400		$	421		$	382		$	334		$	964		$	716			$	1,137			$	1,537
Loss expenses paid				82			85			93			84			72			80			166			151				235				328
Loss and loss expenses paid			$	642		$	489		$	493		$	505		$	454		$	414		$	1,130		$	867			$	1,372			$	1,865
Statutory combined ratio
Loss ratio				91.2	%		58.4	%		47.7	%		58.8	%		65.1	%		54.3	%		74.6	%		59.8	%			59.5	%			56.5	%
Allocated loss expense ratio				7.0			6.0			6.7			5.9			5.7			6.0			6.5			5.8				5.9				6.1
Unallocated loss expense ratio				5.9			6.7			6.5			6.9			5.2			6.7			6.3			6.0				6.2				6.3
Net underwriting expense ratio				31.3			32.2			33.3			32.9			31.3			34.1			31.8			32.7				32.8				32.9
Statutory combined ratio				135.4	%		103.3	%		94.2	%		104.5	%		107.3	%		101.1	%		119.2	%		104.3	%			104.4	%			101.8	%
Contribution from catastrophe losses				39.8			5.5			0.7			3.8			13.6			2.1			22.5			8.0				6.5				5.1
Statutory combined ratio excluding catastrophe losses				95.6	%		97.8	%		93.5	%		100.7	%		93.7	%		99.0	%		96.7	%		96.3	%			97.9	%			96.7	%
Commission expense ratio				18.2	%		18.4	%		19.9	%		18.7	%		17.9	%		18.4	%		18.3	%		18.1	%			18.3	%			18.7	%
Other expense ratio				13.1			13.8			13.4			14.2			13.4			15.7			13.5			14.6				14.5				14.2
Statutory expense ratio				31.3	%		32.2	%		33.3	%		32.9	%		31.3	%		34.1	%		31.8	%		32.7	%			32.8	%			32.9	%
GAAP combined ratio
GAAP combined ratio				136.6	%		103.9	%		93.1	%		103.9	%		107.6	%		102.6	%		120.1	%		105.2	%			104.7	%			101.7	%
Contribution from catastrophe losses				39.8			5.5			0.7			3.8			13.6			2.1			22.5			8.0				6.5				5.1
GAAP combined ratio excluding catastrophe losses				96.8	%		98.4	%		92.4	%		100.1	%		94.0	%		100.5	%		97.6	%		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.

CINF Second-Quarter 2011 Supplemental Financial Data

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Commercial Lines

(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/11	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			$	500		$	542		$	474		$	479		$	492		$	533		$	1,042		$	1,025			$	1,504			$	1,978
Agency new business written premiums				81			71			76			74			73			66			152			139				213				289
Other written premiums				(44	)		(25	)		(26	)		(42	)		(33	)		(11	)		(69	)		(44	)			(86	)			(112	)
Reported written premiums – statutory*			$	537		$	588		$	524		$	511		$	532		$	588		$	1,125		$	1,120			$	1,631			$	2,155
Unearned premium change				(4	)		(48	)		22			36			6			(65	)		(52	)		(59	)			(23	)			(1	)
Earned premiums			$	533		$	540		$	546		$	547		$	538		$	523		$	1,073		$	1,061			$	1,608			$	2,154
Year over year change %
Agency renewal written premiums				2	%		2	%		(1	) %		(2	) %		1	%		(4	) %		2	%		(2	) %			(2	) %			(2	) %
Agency new business written premiums				11			8			13			(3	)		(8	)		(13	)		9			(10	)			(8	)			(3	)
Other written premiums				(33	)		(127	)		38			(14	)		23			(57	)		(57	)		14				2				14
Reported written premiums – statutory*				1			0			4			(3	)		2			(6	)		0			(3	)			(3	)			(1	)
Paid losses and loss expenses
Losses paid			$	327		$	290		$	284		$	290		$	266		$	230		$	618		$	497			$	786			$	1,070
Loss expenses paid				63			69			75			65			58			63			131			120				186				261
Loss and loss expenses paid			$	390		$	359		$	359		$	355		$	324		$	293		$	749		$	617			$	972			$	1,331
Statutory combined ratio
Loss ratio				77.5	%		55.5	%		44.2	%		57.1	%		59.0	%		53.8	%		66.4	%		56.4	%			56.7	%			53.5	%
Allocated loss expense ratio				8.9			7.0			7.9			6.9			6.5			7.1			8.0			6.8				6.8				7.1
Unallocated loss expense ratio				4.4			6.7			6.4			6.7			4.8			6.6			5.5			5.7				6.0				6.1
Net underwriting expense ratio				32.2			32.9			33.4			34.8			31.7			31.9			32.6			31.8				32.7				32.9
Statutory combined ratio				123.0	%		102.1	%		91.9	%		105.5	%		102.0	%		99.3	%		112.5	%		100.7	%			102.2	%			99.6	%
Contribution from catastrophe losses				29.7			4.9			1.0			3.2			10.4			1.8			17.2			6.2				5.2				4.1
Statutory combined ratio excluding catastrophe losses				93.3	%		97.2	%		90.9	%		102.3	%		91.6	%		97.5	%		95.3	%		94.5	%			97.0	%			95.5	%
Commission expense ratio				17.7	%		18.5	%		19.0	%		19.0	%		17.6	%		17.2	%		18.1	%		17.4	%			17.9	%			18.1	%
Other expense ratio				14.5			14.4			14.4			15.8			14.1			14.7			14.5			14.4				14.8				14.8
Statutory expense ratio				32.2	%		32.9	%		33.4	%		34.8	%		31.7	%		31.9	%		32.6	%		31.8	%			32.7	%			32.9	%
GAAP combined ratio
GAAP combined ratio				124.2	%		104.0	%		90.6	%		103.4	%		101.7	%		102.1	%		114.0	%		101.9	%			102.4	%			99.4	%
Contribution from catastrophe losses				29.7			4.9			1.0			3.2			10.4			1.8			17.2			6.2				5.2				4.1
GAAP combined ratio excluding catastrophe losses				94.5	%		99.1	%		89.6	%		100.2	%		91.3	%		100.3	%		96.8	%		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.

CINF Second-Quarter 2011 Supplemental Financial Data

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			$	205		$	156		$	166		$	189		$	187		$	143		$	361		$	330			$	519			$	685
Agency new business written premiums				26			22			23			25			24			18			48			42				67				90
Other written premiums				(21	)		(5	)		(6	)		(6	)		(7	)		(6	)		(26	)		(13	)			(19	)			(25	)
Reported written premiums – statutory*			$	210		$	173		$	183		$	208		$	204		$	155		$	383		$	359			$	567			$	750
Unearned premium change				(30	)		17			3			(26	)		(25	)		19			(13	)		(6	)			(32	)			(29	)
Earned premiums			$	180		$	190		$	186		$	182		$	179		$	174		$	370		$	353			$	535			$	721
Year over year change %
Agency renewal written premiums				10	%		9	%		8	%		7	%		6	%		4	%		9	%		5	%			6	%			7	%
Agency new business written premiums				8			22			15			19			26			29			14			24				22				20
Other written premiums				(200	)		17			0			25			(40	)		0			(100	)		0				10				4
Reported written premiums – statutory*				3			12			10			9			7			7			7			7				8				9
Paid losses and loss expenses
Losses paid			$	229		$	109		$	116		$	128		$	114		$	103		$	338		$	217			$	345			$	461
Loss expenses paid				18			15			17			17			14			17			33			30				48				65
Loss and loss expenses paid			$	247		$	124		$	133		$	145		$	128		$	120		$	371		$	247			$	393			$	526
Statutory combined ratio
Loss ratio				135.7	%		64.9	%		60.5	%		63.2	%		82.4	%		55.3	%		99.3	%		69.0	%			67.0	%			65.4	%
Allocated loss expense ratio				3.0			2.3			2.5			1.9			2.0			1.9			2.6			2.0				1.9				2.1
Unallocated loss expense ratio				10.7			6.9			6.9			7.2			6.7			7.2			8.8			6.9				7.1				6.9
Net underwriting expense ratio				29.0			30.3			32.6			28.4			30.1			42.1			29.5			35.3				32.8				32.7
Statutory combined ratio				178.4	%		104.4	%		102.5	%		100.7	%		121.2	%		106.5	%		140.2	%		113.2	%			108.8	%			107.1	%
Contribution from catastrophe losses				73.4			7.4			(0.3	)		6.0			23.8			3.0			39.4			13.6				11.0				8.1
Statutory combined ratio excluding catastrophe losses				105.0	%		97.0	%		102.8	%		94.7	%		97.4	%		103.5	%		100.8	%		99.6	%			97.8	%			99.0	%
Commission expense ratio				18.7	%		17.9	%		21.7	%		17.1	%		18.1	%		22.4	%		18.3	%		20.0	%			19.0	%			19.6	%
Other expense ratio				10.3			12.4			10.9			11.3			12.0			19.7			11.2			15.3				13.8				13.1
Statutory expense ratio				29.0	%		30.3	%		32.6	%		28.4	%		30.1	%		42.1	%		29.5	%		35.3	%			32.8	%			32.7	%
GAAP combined ratio
GAAP combined ratio				179.2	%		101.4	%		101.9	%		103.4	%		123.4	%		102.5	%		139.2	%		113.1	%			109.8	%			107.7	%
Contribution from catastrophe losses				73.4			7.4			(0.3	)		6.0			23.8			3.0			39.4			13.6				11.0				8.1
GAAP combined ratio excluding catastrophe losses				105.8	%		94.0	%		102.2	%		97.4	%		99.6	%		99.5	%		99.8	%		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.

CINF Second-Quarter 2011 Supplemental Financial Data

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			$	12		$	10		$	8		$	9		$	6		$	6		$	22		$	12			$	21			$	29
Agency new business written premiums				10			9			8			9			9			8			19			17				27				35
Other written premiums				(1	)		(1	)		(1	)		(2	)		(2	)		(1	)		(2	)		(3	)			(5	)			(6	)
Reported written premiums – statutory*			$	21		$	18		$	15		$	16		$	13		$	13		$	39		$	26			$	43			$	58
Unearned premium change				(4	)		(3	)		(1	)		(3	)		(2	)		(2	)		(7	)		(4	)			(8	)			(9	)
Earned premiums			$	17		$	15		$	14		$	13		$	11		$	11		$	32		$	22			$	35			$	49
Year over year change %
Agency renewal written premiums				100	%		67	%		100	%		200	%		200	%		500	%		83	%		500	%			320	%			190	%
Agency new business written premiums				11			13			14			0			13			14			12			13				8				9
Other written premiums				50			0			0		nm			nm				0			33		nm					(400	)			(100	)
Reported written premiums – statutory*				62			38			50			33			30			86			50			53				48				49
Paid losses and loss expenses
Losses paid			$	4		$	4		$	1		$	3		$	1		$	1		$	8		$	2			$	5			$	6
Loss expenses paid				1			1			1			1			0			0			2			1				2				2
Loss and loss expenses paid			$	5		$	5		$	2		$	4		$	1		$	1		$	10		$	3			$	7			$	8
Statutory combined ratio
Loss ratio				49.6	%		77.6	%		20.8	%		72.3	%		81.5	%		65.4	%		62.8	%		73.5	%			73.1	%			58.1	%
Allocated loss expense ratio				(12.8	)		19.1			16.1			23.5			20.4			21.0			2.2			20.7				21.8				20.1
Unallocated loss expense ratio				4.7			6.1			2.7			7.9			6.5			5.1			5.3			5.8				6.5				5.5
Net underwriting expense ratio				31.6			27.6			39.0			30.8			33.5			38.5			29.8			35.8				33.9				35.2
Statutory combined ratio				73.1	%		130.4	%		78.6	%		134.5	%		141.9	%		130.0	%		100.1	%		135.8	%			135.3	%			118.9	%
Contribution from catastrophe losses				4.4			2.8			(0.1	)		4.6			5.6			0.0			3.6			2.7				1.7				1.2
Statutory combined ratio excluding catastrophe losses				68.7	%		127.6	%		78.7	%		129.9	%		136.3	%		130.0	%		96.5	%		133.1	%			133.6	%			117.7	%
Commission expense ratio				24.5	%		22.2	%		30.7	%		27.0	%		26.0	%		28.2	%		23.5	%		27.0	%			27.0	%			27.9	%
Other expense ratio				7.1			5.4			8.3			3.8			7.5			10.3			6.3			8.8				6.9				7.3
Statutory expense ratio				31.6	%		27.6	%		39.0	%		30.8	%		33.5	%		38.5	%		29.8	%		35.8	%			33.9	%			35.2	%
GAAP combined ratio
GAAP combined ratio				74.7	%		133.0	%		75.3	%		129.8	%		137.5	%		127.1	%		102.1	%		132.4	%			131.4	%			115.4	%
Contribution from catastrophe losses				4.4			2.8			(0.1	)		4.6			5.6			0.0			3.6			2.7				1.7				1.2
GAAP combined ratio excluding catastrophe losses				70.3	%		130.2	%		75.4	%		125.2	%		131.9	%		127.1	%		98.5	%		129.7	%			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.

CINF Second-Quarter 2011 Supplemental Financial Data

The Cincinnati Life Insurance Company

Statutory Statements of Income

	For the Three Months Ended June 30,												For the Six Months Ended June 30,
(Dollars in millions)	2011			2010			Change			% Change			2011			2010			Change			% Change
Net premiums written	$	75		$	93		$	(18	)		(19	)	$	177		$	198		$	(21	)		(11	)
Net investment income		35			34			1			3			70			67			3			4
Amortization of interest maintenance reserve		-			(1	)		1		nm				-			(1	)		1		nm
Commissions and expense allowances on reinsurance ceded		1			2			(1	)		(50	)		3			3			-		nm
Income from fees associated with Separate Accounts		1			1			-		nm				1			1			-		nm
Total revenues	$	112		$	129		$	(17	)		(13	)	$	251		$	268		$	(17	)		(6	)
Death benefits and matured endowments	$	14		$	13		$	1			8		$	30		$	26		$	4			15
Annuity benefits		12			8			4			50			26			18			8			44
Disability benefits and benefits under accident and health contracts		-			1			(1	)	nm				-			1			(1	)	nm
Surrender benefits and group conversions		6			5			1			20			12			11			1			9
Interest and adjustments on deposit-type contract funds		3			3			-		nm				5			5			-		nm
Increase in aggregate reserves for life and accident and health contracts		58			78			(20	)		(26	)		135			162			(27	)		(17	)
Payments on supplementary contracts with life contingencies		-			-			-		nm				-			-			-		nm
Total benefit expenses	$	93		$	108		$	(15	)		(14	)	$	208		$	223		$	(15	)		(7	)
Commissions	$	10		$	12		$	(2	)		(17	)	$	22		$	23		$	(1	)		(4	)
General insurance expenses and taxes		10			9			1			11			21			19			2			11
Increase in loading on deferred and uncollected premiums		(3	)		(3	)		-		nm				(3	)		(4	)		1			25
Net transfers from Separate Accounts		-			-			-			-			-			-			-		nm
Other deductions		-			-			-			-			-			-			-		nm
Total operating expenses	$	17		$	18		$	(1	)		(6	)	$	40		$	38		$	2			5
Federal and foreign income tax benefit		4			1			3			300			12			(3	)		15		nm
Net gain from operations before realized capital gains	$	(2	)	$	2		$	(4	)	nm			$	(9	)	$	10		$	(19	)	nm
Net realized gains net of capital gains tax		2			-			2		nm				(17	)		1			(18	)	nm
Net income (loss) (statutory)	$	-		$	2		$	(2	)	nm			$	(26	)	$	11		$	(37	)	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.

CINF Second-Quarter 2011 Supplemental Financial Data