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:  September 21, 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 7.01 Regulation FD Disclosure

On September 21, 2011, Cincinnati Financial Corporation posted presentation slides in PDF format on www.cinfin.com/investors that will be used in investor presentations beginning September 22, 2011.  Exhibit 99.1 is a copy of the slides.  The slides are being furnished pursuant to Item 7.01, and the information contained therein shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to the liabilities of that section.  This report should not be deemed an admission as to the materiality of any information contained in the investor presentation slides.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit 99.1 – Investor presentation slides

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.

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:  September 21, 2011	/S/ Michael J. Sewell
	Michael J. Sewell, CPA
	Chief Financial Officer, Senior Vice President, and Treasurer

EX-99.1

 

Cincinnati Financial Corporation Steven J. Johnston, FCAS, MAAA, CFA President and Chief Executive Officer INVESTOhio Equity Conference This presentation contains forward-looking statements that involve risks and uncertainties. Please refer to our various filings with the U.S. Securities and Exchange Commission for factors that could cause results to materially differ from those discussed. The forward-looking information in this presentation has been publicly disclosed, most recently on July 27, 2011, and should be considered to be effective only as of that date. Its inclusion in this document is not intended to be an update or reaffirmation of the forward-looking information as of any later date. Reconciliations of non-GAAP measures are in our most recent quarterly earnings news release, which is available on the Investors page of our website www.cinfin.com Copyright © 2011 Cincinnati Financial Corporation. All rights reserved. Do not reproduce or post online, in whole or in part, without written permission.

Cincinnati Financial Profile 25th largest U.S. property casualty writer based on 2010 written premium Rated A+ by A.M. Best Increased shareholder dividend for 50 consecutive years A record matched by only 9 other publicly traded companies $3.1 billion annual premiums through select agencies in 39 states Rank # 1 or # 2 in approximately 75% of agencies appointed more than five years Life 5% Commercial Lines 70% Personal Lines 23% Excess & Surplus 2% 1. Combined ratio below 100% 3. Investment contribution 2. Premium growth vs. industry Value Creation Focus Three performance drivers Value Creation

Increase Value for Shareholders Measured by Value Creation Ratio (VCR) -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 2006 2007 2008 2009 2010 VCR - Investment Income & Other VCR - P&C Underwriting VCR - Bond Portfolio Gains VCR - Equity Portfolio Gains Total CINF Shareholder Return (TSR) Target for the period 2010-2014: Annual VCR averaging 12% to 15% 2011 Combined Ratio Reflects Improving Profitability Trends 97.2% 95.2% 65% 70% 75% 80% 85% 90% 95% 100% 105% YTD 6-30-10 YTD 6-30-11

Cash Dividend Payout Ratio 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 120% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Dividend Payout Ratio – Net Income Dividend Payout Ratio – Operating Income Strong capital and cash flow support current dividend payout level Investment Portfolio Invest for income and capital appreciation Taxable Fixed Maturities $5.790 Tax-Exempt Fixed Maturities $2.927 Common Equities $2.864 Preferred Equities $0.107 $11.7 billion fair value at June 30, 2011 • Investment income grew 3% in 2010, 1% for first-half 2011 (pre-tax) • Portfolio composition helps mitigate anticipated effects of inflation, rising rates • Diversified equity portfolio had 11% compound annual return in 2010 • Diversified bond portfolio has laddered maturity structure, A2/A average rating

Property Casualty Reserves Favorable development for 22 consecutive years $3,356 $3,397 $3,498 $3,661 $3,811 2006 2007 2008 2009 2010 Reserve range at 12-31-10 Low end $3,571 High end $3,952 Carried at 63rd percentile (64th percentile at 12-31-09) Values shown are carried loss and loss expense reserves net of reinsurance Vertical bar represents reasonably likely range Development (Favorable) (116) (244) (323) (188) (304) In millions Competitive Advantages Relationships leading to agents’ best accounts Local decision making and claims excellence Superior financial strength supports stability, confidence Agent- Centered Business Model

Profitability Improvement Initiatives Predictive modeling for improved pricing precision – In use for: Workers’ compensation, homeowner, personal auto – Production status in 3Q11: Commercial auto, property, general liability Technology is improving efficiency, ease of use – Agencies benefit and are more inclined to produce Cincinnati policies – Company benefits by processing more business without adding staff – Additional staff in targeted areas; overall staff level declining Data management for better underwriting and pricing decisions – Long-term project continues to be developed over time Renewal price increase averages in 2011 by modeled rating segments Better = Rating segments considered higher quality Worse = Rating segments considered lower quality 1.3% 4.6% 4.4% 4.4% 7.1% 9.1% -2% 0% 2% 4% 6% 8% 10% Workers' Compensation Homeowner Better Middle Worse Greater Pricing Precision Can Improve Profit Margins

Premium Growth Initiatives New agency appointments – 2011 target: 120 appointments; 2010 actual: 93 appointments – Benefits realized over time as relationships mature and our share increases Targeted marketing – Enhancing our small business strategy, including greater ease of use – Target Markets programs provide focused support to agencies Past geographic & product line expansion benefits current growth – New states since 2008: Texas, Colorado, Wyoming, Connecticut, Oregon – Personal lines expansion into seven states during 2008-2009 – Started marketing surplus lines products beginning early 2008 Steadily Increase Share of Agency Business 0.8% 2.8% 6.2% 6.3% 19.9% 2010 2009 2004-2007 1999-2003 Pre-1999 Market share per reporting agency location by year appointed Based on 2010 Standard Agency Written Premiums (Excluding excess and surplus lines)

Select Group of Agencies in 39 States P&C Market Share: 1% and higher Less than 1% Entered in 2008 and 2009 New states in 2010 Inactive states Headquarters (no branches) 1,281 agency relationships with 1,593 locations Commercial Top Five = 45% Ohio, Illinois, Pennsylvania, Indiana, North Carolina Personal Top Five = 66% Ohio, Georgia, Indiana, Illinois, Alabama (as of June 30, 2011) Market Share Top Three Ohio at 4.7% Indiana at 2.6% Illinois at 1.3% Based on 2010 data excluding A&H Current Valuation Is Attractive 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 Ratio of closing price on 9-12-11 to latest reported tangible book value  Market Chubb Travelers Harleysville Median Cincinnati State Auto Selective Hanover Hartford

Why Invest in Cincinnati Financial Potential for stock price appreciation based on current valuation and long-term potential growth of earnings and book value Clear strategy for profitable growth, proven record of execution History of increasing dividend, attractive current yield Solid capital position, high quality balance sheet