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

Exhibit 99.2 – Supplemental Financial Data for the period ending September 30, 2011 distributed October 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: October 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 Third-Quarter 2011 Results

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

· $19 million, or 12 cents per share, of net income for the third quarter of 2011 compared with $156 million, or 95 cents net income per share, in the 2010 third quarter.

· Operating income* of $20 million, or 13 cents per share, compared with operating income of $56 million, or 34 cents.

· $137 million decrease in third-quarter 2011 net income driven by the after-tax effects of a $101 million decrease in net realized investment gains and a $34 million decrease in the contribution from property casualty underwriting operations. That contribution reflected previously announced third-quarter natural catastrophe losses totaling $60 million after taxes, up $42 million compared with the same period of 2010.

· $29.54 book value per share at September 30, 2011, down approximately 5 percent from June 30, 2011, and down 4 percent from December 31, 2010.

· Negative 0.5 percent value creation ratio for the first nine months of 2011, compared with 9.4 percent for the 2010 period.

Financial Highlights
(Dollars in millions except share data)	Three months ended September 30,								Nine months ended September 30,
	2011			2010		Change %			2011			2010		Change %
Revenue Highlights
Earned premiums	$	812		$	784		4		$	2,367		$	2,299		3
Investment income, pre-tax		130			128		2			393			388		1
Total revenues		944			1,071		(12	)		2,848			2,836		0
Income Statement Data
Net income	$	19		$	156		(88	)	$	32		$	251		(87	)
Net realized investment gains and losses		(1	)		100	nm				50			90		(44	)
Operating income (loss)*	$	20		$	56		(64	)	$	(18	)	$	161	nm
Per Share Data (diluted)
Net income	$	0.12		$	0.95		(87	)	$	0.20		$	1.53		(87	)
Net realized investment gains and losses		(0.01	)		0.61	nm				0.30			0.55		(45	)
Operating income (loss)*	$	0.13		$	0.34		(62	)	$	(0.10	)	$	0.98	nm
Book value									$	29.54		$	30.80		(4	)
Cash dividend declared	$	0.4025		$	0.40		1		$	1.2025		$	1.19		1
Weighted average shares outstanding		163,085,974			163,175,682		0			163,464,767			163,251,628		0

Insurance Operations Third-Quarter Highlights

· 110.6 percent third-quarter 2011 property casualty combined ratio, up from 103.9 percent from one year ago.

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

· $115 million third-quarter 2011 property casualty new business written premiums, up 6 percent or $6 million, driven by a $10 million increase from agencies appointed since the beginning of 2010.

· 4 cents per share contribution from life insurance to third-quarter operating income, matching the year-ago amount.

Investment and Balance Sheet Highlights

· 2 percent third-quarter 2011 growth in pre-tax investment income reflecting higher interest income from a larger base of bond investments, partially offset by depressed yields in the bond market.

· Less than 1 percent nine-month rise in fair value of invested assets at September 30, 2011, including third-quarter 2011 bond portfolio growth of 2 percent.

· $978 million parent company cash and marketable securities at September 30, 2011.

· $30 million third-quarter 2011 share repurchases at an average price of $26.03 per share.

* 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).

CINF 3Q11 Earinings Release               1

Returning to Quarterly Operating Profit

Steven J. Johnston, president and chief executive officer, commented, “Cincinnati Financial’s operating income edged back into positive territory for the third quarter, dampened by catastrophe losses above our historical average third-quarter level but well below the unprecedented second-quarter 2011 level. We believe operating income is a good barometer of a property casualty insurer’s performance for a specific period, as it excludes realized capital gains and losses that are timed at our discretion and do not correlate with our underlying business performance in that period. Third-quarter comparisons of our 2011 and 2010 revenues and net income are skewed by the small capital loss realized this year versus the unusually high capital gains we harvested in last year’s third quarter, when we chose to sell a single large investment holding after its successful initial public offering.

Driving Straight through the Storm

“At the nine-month mark, our bottom-line financial results are very disappointing. Yet we remain optimistic about the course we are setting for future periods. Operationally, we count many successes that should have positive impacts on future performance. While this year’s storms have raised our activity and expense levels, we have satisfied policyholders by meeting the highest service standards in hard-hit areas such as Tuscaloosa, Joplin, Dayton and several eastern states battered by Hurricane Irene. We have supported long-term shareholder value by maintaining consistency in our reserve practices, capital management and dividend policies. And we have strengthened our independent agents’ advantages by focusing on strategic initiatives to drive efficiency and profitable growth.

“At 7 percent for the quarter and 4 percent for the nine months, our net written premium growth is all the more satisfying because premiums rose during both periods for total property casualty operations and also for each of the three property casualty segments. We continued to write new business at a good pace, including meaningful contributions from new agencies appointed in 2010 and 2011 to represent The Cincinnati Insurance Companies in new and established states. At the same time, we are careful to decline new business opportunities we consider to be underpriced.

“Renewal pricing continued to improve in our personal lines and excess and surplus lines segments. Average renewal pricing also turned slightly positive in our largest segment, commercial lines, as our recently expanded use of pricing analytics tools continue to drive targeted pricing improvements. Our agents and underwriters are enthusiastic about their increased ability, using these tools, to help align pricing decisions with risk quality and assure rate adequacy. We expect our data-driven, positive pricing trends to continue, regardless of any support that might come from changes in the competitive insurance marketplace.

“Initiatives to selectively expand our agency force and our commercial product portfolio are solidly on track. Most of our business lines are already profitable, including our largest commercial line of business, commercial casualty. Notable progress on initiatives to improve profitability in our more challenging lines of business supports our optimism. Our workers’ compensation loss ratio continued to improve in the third quarter, counter to the industry trend. While we still have a long road to travel, we have come a good distance by improving pricing accuracy, implementing direct reporting of claims, improving our medical cost containment processes and capabilities, and adding specialized field claims and loss control associates to serve workers’ compensation policyholders.

“A second challenge area, homeowners insurance, suffered this quarter and through nine months from catastrophes and non-catastrophe weather losses. We expect future benefits from current efforts to increase packaging of homeowner policies with auto policies, spread our catastrophe exposure, further refine our rate segmentation and implement targeted increases to achieve rate adequacy.

“Our excess and surplus lines operation, in its fourth year of operation, is another area of focus. Leveraging strong agency relationships to selectively write new business in a highly competitive market, this segment grew overall premiums and achieved a small underwriting profit for the third quarter and nine months. The third-quarter loss ratio improved significantly, even without the benefit from favorable reserve development.

Managing Portfolio Risk and Reward

“The 1 percent increase in nine-month pre-tax investment income was a satisfying result given the current low interest environment. Our equity investing strategy helped boost income, with the equity portfolio producing increased dividend income. With second- and third-quarter catastrophe claim payouts reducing new money available to invest, we caution that investment income growth will certainly be harder to achieve in the coming quarters.

“While the fair value of our total invested assets was slightly increased in 2011 through September 30, pre-tax unrealized gains in our equity portfolio were down 37 percent to $477 million on that date. Our equity portfolio is diversified by sector and issue; however, broad market drops or spikes can affect it. We have a substantial capital cushion and a buy-and-hold investment philosophy, and we monitor market variability to assure that we are balancing the risk and reward of equity investing within established tolerances. At September 30, our diversified bond portfolio, with its generally-laddered maturity profile, provided 132 percent coverage for our insurance liabilities.

“Our book value lost only 4 percent of its year-end 2010 value at September 30 of this year, although equity markets are under pressure and 2011 is on track to have double the catastrophe losses of any previous year in our 60-year history. We believe we are in position to restore and add to that value over the coming quarters, as we drive further progress on operational initiatives that have us headed in the right direction.”

CINF 3Q11 Earinings Release               2

Consolidated Property Casualty Insurance Operations
(Dollars in millions)	Three months ended September 30,									Nine months ended September 30,
	2011			2010			Change %			2011			2010			Change %
Earned premiums	$	769		$	743			3		$	2,244		$	2,179			3
Fee revenues		1			1			0			3			3			0
Total revenues		770			744			3			2,247			2,182			3
Loss and loss expenses		609			532			14			1,898			1,560			22
Underwriting expenses		241			240			0			723			722			0
Underwriting loss	$	(80	)	$	(28	)		(186	)	$	(374	)	$	(100	)		(274	)

					Pt. Change							Pt. Change
Ratios as a percent of earned premiums:
Loss and loss expenses	79.1	%	71.6	%		7.5		84.6	%	71.6	%		13.0
Underwriting expenses	31.5		32.3			(0.8	)	32.2		33.1			(0.9	)
Combined ratio	110.6	%	103.9	%		6.7		116.8	%	104.7	%		12.1

							Change %									Change %
Agency renewal written premiums	$	730		$	677			8		$	2,155		$	2,044			5
Agency new business written premiums		115			109			6			334			307			9
Other written premiums		(54	)		(50	)		(8	)		(151	)		(110	)		(37	)
Net written premiums	$	791		$	736			7		$	2,338		$	2,241			4

					Pt. Change							Pt. Change
Ratios as a percent of earned premiums:
Current accident year before catastrophe losses	76.3	%	75.5	%		0.8		75.6	%	72.3	%		3.3
Current accident year catastrophe losses	11.6		4.3			7.3		18.8		7.2			11.6
Prior accident years before catastrophe losses	(9.2	)	(7.7	)		(1.5	)	(9.9	)	(7.2	)		(2.7	)
Prior accident years catastrophe losses	0.4		(0.5	)		0.9		0.1		(0.7	)		0.8
Total loss and loss expenses	79.1	%	71.6	%		7.5		84.6	%	71.6	%		13.0
Current accident year combined ratio before catastrophe losses	107.8	%	107.8	%		0.0		107.8	%	105.4	%		2.4

· $55 million or 7 percent increase in third-quarter 2011 property casualty net written premiums and nine-month growth of 4 percent. Solid growth for renewal and new business premiums was partially offset by ceded premiums to reinstate property catastrophe reinsurance coverage, $4 million for third quarter and $42 million for nine months.

· $6 million increase to $115 million third-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.

· 1,298 agency relationships in 1,619 reporting locations marketing our standard market property casualty insurance products at September 30, 2011, compared with 1,245 agency relationships in 1,544 reporting locations at year-end 2010. One hundred-and-one new agencies were appointed during the first nine months of 2011.

· 6.7 and 12.1 percentage-point rise in the third-quarter and first-nine-months combined ratios primarily due to 8.2 and 12.4 point increases in natural catastrophe losses.

· 2.0 percentage-point rise over full-year 2010, to 75.6 percent, for nine-month 2011 ratio of accident year losses and loss expenses before catastrophes. Loss ratio improvements from better pricing were offset by the 1.4 point effect of reinsurance reinstatement ceded premiums and 1.3 points from higher new large losses, plus higher weather-related losses not part of an industry-designated catastrophe event.

· 8.8 percentage points third-quarter 2011 benefit from favorable prior accident year reserve development of $68 million, compared with 8.2 percent or $60 million for third-quarter 2010. 9.8 percent nine-month 2011 ratio was within the range of 2010’s nine-month ratio of 7.9 percent and full-year of 10.3 percent.

· 0.8 and 0.9 percentage-point decline in the third-quarter and nine-month underwriting expense ratios, reflecting prudent expense management and higher earned premiums.

CINF 3Q11 Earinings Release               3

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

(In millions, net of reinsurance)			Three months ended September 30,											Nine months ended September 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			$	3		$	(1	)	$	-	$	2		$	23		$	15		$	-	$	38
Second quarter catastrophes				(6	)		7			-		1			147			135			-		282
Jul. 1-4	Flood, hail, tornado, wind	Midwest		3			2			-		5			3			2			-		5
Jul. 10-14	Flood, hail, tornado, wind	Midwest, West		6			7			-		13			6			7			-		13
Aug. 18-19	Flood, hail, tornado, wind	Midwest		12			1			-		13			12			1			-		13
Aug. 26-28	Flood, hurricane, tornado, wind	East		24			9			-		33			24			9			-		33
Sep. 3-6	Flood, tornado, wind	South		8			7			-		15			8			7			-		15
All other 2011 catastrophes				5			3			-		8			12			10			1		23
Development on 2010 and prior catastrophes				5			(2	)		-		3			9			(7	)		-		2
Calendar year incurred total			$	60		$	33		$	-	$	93		$	244		$	179		$	1	$	424
2010
First quarter catastrophes			$	(1	)	$	(1	)	$	-	$	(2	)	$	8		$	2		$	-	$	10
Second quarter catastrophes				-			1			-		1			51			42			-		93
Jun. 30-Jul. 1	Hail, wind	West		9			3			-		12			12			4			-		16
Jul. 20-23	Flood, hail, tornado, wind	Midwest		5			4			-		9			5			4			-		9
All other 2010 catastrophes				6			5			-		11			19			11			-		30
Development on 2009 and prior catastrophes				(2	)		(1	)		-		(3	)		(12	)		(4	)		-		(16	)
Calendar year incurred total			$	17		$	11		$	-	$	28		$	83		$	59		$	-	$	142

CINF 3Q11 Earinings Release               4

Insurance Operations Highlights

Commercial Lines Insurance Operations

(Dollars in millions)	Three months ended September 30,									Nine months ended September 30,
	2011			2010			Change %			2011			2010			Change %
Earned premiums	$	557		$	547			2		$	1,630		$	1,608			1
Fee revenues		1			1			0			2			2			0
Total revenues		558			548			2			1,632			1,610			1
Loss and loss expenses		429			387			11			1,286			1,118			15
Underwriting expenses		173			179			(3	)		539			529			2
Underwriting loss	$	(44	)	$	(18	)		(144	)	$	(193	)	$	(37	)		(422	)
							Pt. Change									Pt. Change
Ratios as a percent of earned premiums:
Loss and loss expenses		76.8	%		70.7	%		6.1			78.8	%		69.5	%		9.3
Underwriting expenses		31.1			32.7			(1.6	)		33.1			32.9			0.2
Combined ratio		107.9	%		103.4	%		4.5			111.9	%		102.4	%		9.5

							Change %									Change %
Agency renewal written premiums	$	507		$	479			6		$	1,549		$	1,504			3
Agency new business written premiums		81			74			9			233			213			9
Other written premiums		(41	)		(42	)		2			(110	)		(86	)		(28	)
Net written premiums	$	547		$	511			7		$	1,672		$	1,631			3
							Pt. Change									Pt. Change
Ratios as a percent of earned premiums:
Current accident year before catastrophe losses		76.5	%		76.6	%		(0.1	)		75.7	%		73.1	%		2.6
Current accident year catastrophe losses		9.9			3.5			6.4			14.4			5.9			8.5
Prior accident years before catastrophe losses		(10.4	)		(9.1	)		(1.3	)		(11.8	)		(8.8	)		(3.0	)
Prior accident years catastrophe losses		0.8			(0.3	)		1.1			0.5			(0.7	)		1.2
Total loss and loss expenses		76.8	%		70.7	%		6.1			78.8	%		69.5	%		9.3
Current accident year combined ratio before catastrophe losses		107.6	%		109.3	%		(1.7	)		108.8	%		106.0	%		2.8

· $36 million or 7 percent increase in third-quarter 2011 commercial lines net written premiums, reflecting growth in both renewal and new business written premiums. 3 percent increase in nine-month net written premiums also driven by renewal and new business premium growth, with a larger offsetting effect from second-quarter ceded premiums to reinstate property catastrophe reinsurance.

· $28 million and $45 million increases in third quarter and nine-month renewal written premiums largely reflected the effects of slowly improving economic conditions on insured exposure levels. Third-quarter 2011 commercial lines pricing changes on average were slightly positive, improved from a slightly negative level during the second quarter.

· $7 million increase to $81 million in new business written premiums, rising in both newer and established states.

· 4.5 and 9.5 percentage-point rise in the third-quarter and nine-month combined ratios primarily due to 7.5 and 9.7 point increases in natural catastrophe losses.

· 1.2 percentage-point rise over full year 2010, to 75.7 percent, for nine-month 2011 ratio of accident year losses and loss expenses before catastrophes. Loss ratio improvements from better pricing were offset by the 1.1-point effect of reinsurance reinstatement ceded premiums and 1.9 points from higher new large losses, plus higher weather-related losses not part of an industry-designated catastrophe event.

CINF 3Q11 Earinings Release               5

Personal Lines Insurance Operations

(Dollars in millions)	Three months ended September 30,									Nine months ended September 30,
	2011			2010			Change %			2011			2010			Change %
Earned premiums	$	193		$	182			6		$	563		$	535			5
Fee revenues		-			-		nm				1			1			0
Total revenues		193			182			6			564			536			5
Loss and loss expenses		168			132			27			578			407			42
Underwriting expenses		62			57			9			168			181			(7	)
Underwriting loss	$	(37	)	$	(7	)		(429	)	$	(182	)	$	(52	)		(250	)
							Pt. Change									Pt. Change
Ratios as a percent of earned premiums:
Loss and loss expenses		87.3	%		72.3	%		15.0			102.7	%		76.0	%		26.7
Underwriting expenses		32.4			31.1			1.3			29.9			33.8			(3.9	)
Combined ratio		119.7	%		103.4	%		16.3			132.6	%		109.8	%		22.8

							Change %									Change %
Agency renewal written premiums	$	209		$	189			11		$	570		$	519			10
Agency new business written premiums		25			25			0			73			67			9
Other written premiums		(12	)		(6	)		(100	)		(38	)		(19	)		(100	)
Net written premiums	$	222		$	208			7		$	605		$	567			7
							Pt. Change									Pt. Change
Ratios as a percent of earned premiums:
Current accident year before catastrophe losses		76.8	%		70.0	%		6.8			75.2	%		68.1	%		7.1
Current accident year catastrophe losses		17.6			6.9			10.7			32.9			11.6			21.3
Prior accident years before catastrophe losses		(6.3	)		(3.7	)		(2.6	)		(4.2	)		(3.1	)		(1.1	)
Prior accident years catastrophe losses		(0.8	)		(0.9	)		0.1			(1.2	)		(0.6	)		(0.6	)
Total loss and loss expenses		87.3	%		72.3	%		15.0			102.7	%		76.0	%		26.7
Current accident year combined ratio before catastrophe losses		109.2	%		101.1	%		8.1			105.1	%		101.9	%		3.2

· $14 million or 7 percent growth in third-quarter 2011 personal lines net written premiums and nine-month growth of 7 percent, as increases in renewal and new business written premiums for both periods more than offset $3 million and $18 million of ceded premiums for the three- and nine-month periods to reinstate property catastrophe reinsurance.

· 16.3 and 22.8 percentage-point rise in the third-quarter and nine-month combined ratios primarily due to 10.8- and 20.7- point increases in weather-related catastrophe losses plus lower earned premiums from reinstatement premiums.

· 4.8 percentage-point rise over full year 2010, to 75.2 percent, for nine-month 2011 ratio of accident year losses and loss expenses before catastrophes. Loss ratio improvements from better pricing were offset by the 2.4-point effect of reinsurance reinstatement ceded premiums and higher weather-related losses not part of an industry-designated catastrophe event, including 2.8 points alone from $16 million increase in homeowner wind, hail and lightning losses.

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

CINF 3Q11 Earinings Release               6

Excess and Surplus Lines Insurance Operations

(Dollars in millions)	Three months ended September 30,									Nine months ended September 30,
	2011			2010			Change %			2011			2010			Change %
Earned premiums	$	19		$	14			36		$	51		$	36			42
Loss and loss expenses		12			13			(8	)		34			35			(3	)
Underwriting expenses		6			4			50			16			12			33
Underwriting profit (loss)	$	1		$	(3	)	nm			$	1		$	(11	)	nm
							Pt. Change									Pt. Change
Ratios as a percent of earned premiums:
Loss and loss expenses		62.2	%		103.7	%		(41.5	)		67.3	%		101.3	%		(34.0	)
Underwriting expenses		31.4			26.1			5.3			31.7			30.1			1.6
Combined ratio		93.6	%		129.8	%		(36.2	)		99.0	%		131.4	%		(32.4	)

							Change %									Change %
Agency renewal written premiums	$	14		$	9			56		$	36		$	21			71
Agency new business written premiums		9			10			(10	)		28			27			4
Other written premiums		(1	)		(2	)		50			(3	)		(5	)		40
Net written premiums	$	22		$	17			29		$	61		$	43			42
							Pt. Change									Pt. Change
Ratios as a percent of earned premiums:
Current accident year before catastrophe losses		62.7	%		104.9	%		(42.2	)		78.9	%		95.9	%		(17.0	)
Current accident year catastrophe losses		2.5			(0.1	)		2.6			3.1			1.7			1.4
Prior accident years before catastrophe losses		(3.0	)		(1.1	)		(1.9	)		(14.8	)		3.7			(18.5	)
Prior accident years catastrophe losses		0.0			0.0			0.0			0.1			0.0			0.1
Total loss and loss expenses		62.2	%		103.7	%		(41.5	)		67.3	%		101.3	%		(34.0	)
Current accident year combined ratio before catastrophe losses		94.1	%		131.0	%		(36.9	)		110.6	%		126.0	%		(15.4	)

· $5 million or 29 percent growth in third-quarter 2011 excess and surplus lines net written premiums and nine-month growth of 42 percent, largely driven by the opportunity to renew many accounts for the first time and average renewal price increases in a low- to mid-single-digit range.

· 10 percent decrease and 4 percent increase in new business written premiums for the third quarter and first nine months of 2011, reflecting careful underwriting in an increasingly competitive market.

· 36.2 and 32.4 percentage-point combined ratio improvements for third quarter and first nine months of 2011, primarily due to improved current accident year loss and loss expense ratios and net favorable reserve development on prior accident years.

Life Insurance Operations

(In millions)	Three months ended September 30,							Nine months ended September 30,
	2011		2010		Change %			2011		2010		Change %
Term life insurance	$	27	$	25		8		$	79	$	72		10
Universal life insurance		10		10		0			24		29		(17	)
Other life insurance, annuity, and disability income products		6		6		0			20		19		5
Earned premiums		43		41		5			123		120		3
Investment income, net of expenses		34		32		6			101		97		4
Other income		1		-	nm				2		1		100
Total revenues, excluding realized investment gains and losses		78		73		7			226		218		4
Contract holders benefits		49		44		11			138		129		7
Underwriting expenses		19		19		0			49		51		(4	)
Total benefits and expenses		68		63		8			187		180		4
Net income before income tax and realized investment gains and losses		10		10		0			39		38		3
Income tax		4		3		33			14		13		8
Net income before realized investment gains and losses	$	6	$	7		(14	)	$	25	$	25		0

· $2 million or 5 percent increase in third-quarter 2011 earned premiums, driven by term life insurance, our largest life insurance product line. Three- and nine-month growth rates for term life insurance were similar. Face amount of life policies in force rose to $76.911 billion at September 30, 2011, from $74.124 billion at year-end 2010.

· $18 million and $107 million in the third-quarter and first nine months of 2011 for fixed annuity deposits received, slowing as planned from $153 million and $201 million in first nine months and full-year periods of 2010. Cincinnati Life does not offer variable or indexed products.

· $1 million lower three-month profit was primarily due to less favorable mortality experience.

· $22 million or 3 percent nine-month 2011 growth in shareholders’ equity for The Cincinnati Life Insurance Company, after declaring $25 million in dividends to The Cincinnati Insurance Company.

CINF 3Q11 Earinings Release               7

Investment and Balance Sheet Highlights

Investment Operations

(In millions)	Three months ended September 30,									Nine months ended September 30,
	2011			2010			Change %			2011			2010			Change %
Total investment income, net of expenses, pre-tax	$	130		$	128			2		$	393		$	388			1
Investment interest credited to contract holders		(21	)		(21	)		0			(61	)		(60	)		(2	)
Realized investment gains and losses summary:
Realized investment gains and losses		5			151			(97	)		110			170			(35	)
Change in fair value of securities with embedded derivatives		(4	)		5		nm				-			6		nm
Other-than-temporary impairment charges		(3	)		(1	)		(200	)		(33	)		(36	)		8
Total realized investment gains and losses		(2	)		155		nm				77			140			(45	)
Investment operations profit	$	107		$	262			(59	)	$	409		$	468			(13	)

(In millions)	Three months ended September 30,									Nine months ended September 30,
	2011			2010			Change %			2011			2010			Change %
Investment income:
Interest	$	107		$	104			3		$	319		$	318			0
Dividends		24			25			(4	)		77			73			5
Other		1			1			0			3			3			0
Investment expenses		(2	)		(2	)		0			(6	)		(6	)		0
Total investment income, net of expenses, pre-tax		130			128			2			393			388			1
Income taxes		(32	)		(31	)		(3	)		(97	)		(95	)		(2	)
Total investment income, net of expenses, after-tax	$	98		$	97			1		$	296		$	293			1
Effective tax rate		24.7	%		24.3	%					24.6	%		24.4	%
Average yield pre-tax		4.6	%		4.7	%					4.6	%		4.7	%
Average yield after-tax		3.5	%		3.6	%					3.5	%		3.6	%

· 2 percent growth in third-quarter 2011 pre-tax investment income, despite lower dividends reflecting timing of sales and reinvestments in common stocks and variable timing of ex-dividend dates for common stock dividends declared.

· $303 million or 21 percent third-quarter 2011 decrease in pre-tax unrealized investment portfolio gains, including negative $379 million for the equity portfolio.

(Dollars in millions except share data)	At September 30,			At December 31,
	2011			2010
Balance sheet data
Invested assets	$	11,529		$	11,508
Total assets		15,412			15,095
Short-term debt		104			49
Long-term debt		790			790
Shareholders' equity		4,786			5,032
Book value per share		29.54			30.91
Debt-to-total-capital ratio		15.7	%		14.3	%

	Three months ended September 30,					Nine months ended September 30,
		2011		2010			2011		2010
Performance measure
Value creation ratio		(3.4	)%	7.1	%		(0.5	)%	9.4	%

· $11.837 billion in consolidated cash and invested assets at September 30, 2011, compared with $11.893 billion at year-end.

· $8.854 billion bond portfolio at September 30, 2011, with an average rating of A2/A and with a 6 percent rise in fair value during the first nine months of 2011.

· $2.609 billion equity portfolio was 22.6 percent of invested assets, including $477 million in pre-tax net unrealized gains at September 30, 2011.

· $3.513 billion of statutory surplus for the property casualty insurance group at September 30, 2011, down $264 million from $3.777 billion at year-end 2010, after declaring $120 million in dividends to the parent company. Ratio of net written premiums to property casualty statutory surplus for the 12 months ended September 30, 2011, of 0.9-to-1, up from 0.8-to-1 for the 12 months ended December 31, 2010.

· Value creation ratio of negative 3.4 percent for the third quarter of 2011 is the total of 1.3 percent from shareholder dividends minus 4.7 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 3Q11 Earinings 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

· 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

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

· 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

· 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

· 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 3Q11 Earinings Release               9

Cincinnati Financial Corporation

Condensed Consolidated Balance Sheets and Statements of Income (unaudited)

(Dollars in millions)	September 30,			December 31,
	2011			2010
Assets
Investments	$	11,529		$	11,508
Cash and cash equivalents		308			385
Premiums receivable		1,107			1,015
Reinsurance receivable		714			572
Other assets		1,754			1,615
Total assets	$	15,412		$	15,095
Liabilities
Insurance reserves	$	6,700		$	6,234
Unearned premiums		1,657			1,553
Deferred income tax		191			260
Long-term debt		790			790
Other liabilities		1,288			1,226
Total liabilities		10,626			10,063
Shareholders' Equity
Common stock and paid-in capital		1,491			1,484
Retained earnings		3,816			3,980
Accumulated other comprehensive income		703			769
Treasury stock		(1,224	)		(1,201	)
Total shareholders' equity		4,786			5,032
Total liabilities and shareholders' equity	$	15,412		$	15,095

(Dollars in millions except per share data)	Three months ended September 30,					Nine months ended September 30,
	2011			2010		2011			2010
Revenues
Earned premiums	$	812		$	784	$	2,367		$	2,299
Investment income, net of expenses		130			128		393			388
Realized investment gains and losses		(2	)		155		77			140
Fee revenues		1			1		3			3
Other revenues		3			3		8			6
Total revenues		944			1,071		2,848			2,836
Benefits and Expenses
Insurance losses and policyholder benefits		656			575		2,032			1,686
Underwriting, acquisition and insurance expenses		260			258		772			772
Other operating expenses		4			4		14			11
Interest expense		13			13		40			40
Total benefits and expenses		933			850		2,858			2,509
Income Before Income Taxes		11			221		(10	)		327
Provision (Benefit) for Income Taxes		(8	)		65		(42	)		76
Net Income	$	19		$	156	$	32		$	251
Per Common Share:
Net income—basic	$	0.12		$	0.95	$	0.20		$	1.54
Net income—diluted	$	0.12		$	0.95	$	0.20		$	1.53

 

CINF 3Q11 Earinings 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 September 30,						Nine months ended September 30,
	2011			2010			2011			2010
Value creation ratio
End of period book value	$	29.54		$	30.80		$	29.54		$	30.80
Less beginning of period book value		31.01			29.13			30.91			29.25
Change in book value		(1.47	)		1.67			(1.37	)		1.55
Dividend declared to shareholders		0.4025			0.40			1.2025			1.19
Total contribution to value creation ratio	$	(1.07	)	$	2.07		$	(0.17	)	$	2.74
Contribution to value creation ratio from change in book value*		(4.7	)%		5.7	%		(4.4	)%		5.3	%
Contribution to value creation ratio from dividends declared to shareholders**		1.3			1.4			3.9			4.1
Value creation ratio		(3.4	)%		7.1	%		(0.5	)%		9.4	%

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

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

 CINF 3Q11 Earinings Release               11

Cincinnati Financial Corporation

Net Income Reconciliation

(In millions except per share data)	Three months ended			Nine months ended
	September 30, 2011			September 30, 2011
Net income	$	19		$	32
Net realized investment gains and losses		(1	)		50
Operating income (loss)		20			(18	)
Less catastrophe losses		(59	)		(275	)
Operating income before catastrophe losses	$	79		$	257
Diluted per share data:
Net income	$	0.12		$	0.20
Net realized investment gains and losses		(0.01	)		0.30
Operating income (loss)		0.13			(0.10	)
Less catastrophe losses		(0.37	)		(1.69	)
Operating income before catastrophe losses	$	0.50		$	1.59

Property Casualty Reconciliation

	Three months ended September 30, 2011
	Consolidated			Commercial			Personal			E&S
Premiums:
Written premiums	$	791		$	547		$	222		$	22
Unearned premiums change		(22	)		10			(29	)		(3	)
Earned premiums	$	769		$	557		$	193		$	19
Statutory ratio:
Statutory combined ratio		110.2	%		109.4	%		114.7	%		92.9	%
Contribution from catastrophe losses		12.0			10.7			16.8			2.5
Statutory combined ratio excluding catastrophe losses		98.2	%		98.7	%		97.9	%		90.4	%
Commission expense ratio		18.2	%		18.1	%		17.6	%		25.1	%
Other expense ratio		12.9			14.5			9.8			5.6
Statutory expense ratio		31.1	%		32.6	%		27.4	%		30.7	%
GAAP ratio:
GAAP combined ratio		110.6	%		107.9	%		119.7	%		93.6	%
Contribution from catastrophe losses		12.0			10.7			16.8			2.5
Prior accident years before catastrophe losses		(9.2	)		(10.4	)		(6.3	)		(3.0	)
GAAP combined ratio excluding catastrophe losses and prior years reserve development		107.8	%		107.6	%		109.2	%		94.1	%

	Nine months ended September 30, 2011
	Consolidated			Commercial			Personal			E&S
Premiums:
Written premiums	$	2,338		$	1,672		$	605		$	61
Unearned premiums change		(94	)		(42	)		(42	)		(10	)
Earned premiums	$	2,244		$	1,630		$	563		$	51
Statutory ratio:
Statutory combined ratio		116.1	%		111.4	%		131.5	%		97.4	%
Contribution from catastrophe losses		18.9			14.9			31.7			3.2
Statutory combined ratio excluding catastrophe losses		97.2	%		96.5	%		99.8	%		94.2	%
Commission expense ratio		18.2	%		18.1	%		18.1	%		24.1	%
Other expense ratio		13.3			14.5			10.7			6.0
Statutory expense ratio		31.5	%		32.6	%		28.8	%		30.1	%
GAAP ratio:
GAAP combined ratio		116.8	%		111.9	%		132.6	%		99.0	%
Contribution from catastrophe losses		18.9			14.9			31.7			3.2
Prior accident years before catastrophe losses		(9.9	)		(11.8	)		(4.2	)		(14.8	)
GAAP combined ratio excluding catastrophe losses and prior years reserve development		107.8	%		108.8	%		105.1	%		110.6	%

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

CINF 3Q11 Earinings Release                 12

EX-99.2

Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending September 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

	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 October 26, 2011, under continuous review and subject to change and/or affirmation. For the current ratings, select Financial Strength 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

Third Quarter 2011

	Page
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3
Consolidated
Quick Reference	4
CFC and Subsidiaries Consolidation – Nine Months Ended September 30, 2011	5
CFC and Subsidiaries Consolidation – Three Months Ended September 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
Reconciliation Data
Quarterly Property Casualty Data – Consolidated	16
Quarterly Property Casualty Data – Commercial Lines	17
Quarterly Property Casualty Data – Personal Lines	18
Quarterly Property Casualty Data – Excess & Surplus Lines	19
Life Insurance Operations
Statutory Statements of Income	20

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.

Cincinnati Financial Corporation

Quick Reference - Third Quarter 2011

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

				Year over year
	9/30/2011			change %
Revenues:
Commercial lines net written premiums	$	547			7
Personal lines net written premiums		222			7
Excess & surplus lines net written premiums		22			29
Property casualty net written premiums		791			7
Life and accident and health net written premiums		44			3
Annuity net written premiums		18			(50	)
Life, annuity and accident and health net written premiums		62			(22	)
Commercial lines net earned premiums		557			2
Personal lines net earned premiums		193			6
Excess & surplus lines net earned premiums		19			36
Property casualty net earned premiums		769			3
Fee revenue		1			0
Life and accident and health net earned premiums		43			5
Investment income		130			2
Realized gains on investments		(2	)		(101	)
Other revenue		3			0
Total revenues		944			(12	)

Income:
Operating income	$	20			(64	)
Net realized investment gains and losses		(1	)	nm
Net income		19			(88	)

Per share (diluted):
Operating income	$	0.13			(62	)
Net realized investment gains and losses		(0.01	)	nm
Net income		0.12			(87	)
Book value		29.54			(4	)
Weighted average shares		163,085,974

				Year over year
	9/30/2011			change %
Benefits and expenses:
Commercial lines loss and loss expenses	$	429			11
Personal lines loss and loss expenses		168			27
Excess & surplus lines loss and loss expenses		12			(8	)
Life and accident and health losses and policy benefits		49			11
Underwriting, acquisition and insurance expenses		260			1
Other operating expenses		4			0
Interest expenses		13			0
Total benefits & expenses		933			10
Loss before income taxes		11			(95	)
Total income tax		(8	)	nm
Balance Sheet:
Fixed maturity investments	$	8,854
Equity securities		2,609
Other invested assets		66
Total invested assets	$	11,529
Equity in net assets of subsidiaries	$	4,564
Loss and loss expense reserves	$	4,521
Life policy reserves		2,179
Total debt		894
Shareholders' equity		4,786
Key ratios:
Commercial lines GAAP combined ratio		107.9	%
Personal lines GAAP combined ratio		119.7
Excess & surplus lines GAAP combined ratio		93.6
Property casualty GAAP combined ratio		110.6
Commercial lines STAT combined ratio		109.4	%
Personal lines STAT combined ratio		114.7
Excess & surplus lines STAT combined ratio		92.9
Property casualty STAT combined ratio		110.2
Value creation ratio		(3.4	)%

Cincinnati Financial Corporation

Consolidated Statements of Income for the Nine Months Ended September 30, 2011

(In millions)	CFC			CONSOL P&C			CLIC			CFC-I		ELIM			Total
Revenues:
Premiums earned:
Property casualty	$	-		$	2,414		$	-		$	-	$	-		$	2,414
Life		-			-			157			-		-			157
Accident health		-			-			5			-		-			5
Premiums ceded		-			(170	)		(39	)		-		-			(209	)
Total earned premium		-			2,244			123			-		-			2,367
Investment income		30			262			101			-		-			393
Realized gain on investments		14			88			(26	)		1		-			77
Fee revenue		-			3			-			-		-			3
Other revenue		11			1			2			5		(11	)		8
Total revenues	$	55		$	2,598		$	200		$	6	$	(11	)	$	2,848
Benefits & expenses:
Losses & policy benefits	$	-		$	2,183		$	167		$	-	$	(4	)	$	2,346
Reinsurance recoveries		-			(285	)		(29	)		-		-			(314	)
Underwriting, acquisition and insurance expenses		-			723			49			-		-			772
Other operating expenses		19			-			-			3		(8	)		14
Interest expense		39			-			-			1		-			40
Total expenses	$	58		$	2,621		$	187		$	4	$	(12	)	$	2,858
Income (loss) before income taxes	$	(3	)	$	(23	)	$	13		$	2	$	1		$	(10	)
Provision (benefit) for income taxes:
Current operating income	$	(12	)	$	(40	)	$	16		$	-	$	-		$	(36	)
Capital gains/losses		5			31			(9	)		-		-			27
Deferred		1			(34	)		(1	)		1		-			(33	)
Total provision (benefit) for income taxes	$	(6	)	$	(43	)	$	6		$	1	$	-		$	(42	)
Operating income (loss)	$	(6	)	$	(37	)	$	24		$	-	$	1		$	(18	)
Net income - current year	$	3		$	20		$	7		$	1	$	1		$	32
Net income - prior year	$	5		$	222		$	23		$	1	$	-		$	251

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

Cincinnati Financial Corporation and Subsidiaries

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

(In millions)	CFC			CONSOL P&C			CLIC			CFC-I		ELIM			Total
Revenues:
Premiums earned:
Property casualty	$	-		$	820		$	-		$	-	$	-		$	820
Life		-			-			55			-		-			55
Accident health		-			-			2			-		-			2
Premiums ceded		-			(51	)		(14	)		-		-			(65	)
Total earned premium		-			769			43			-		-			812
Investment income		10			86			34			-		-			130
Realized gain (loss) on investments		6			(7	)		(2	)		-		1			(2	)
Fee revenue		-			1			-			-		-			1
Other revenue		4			-			1			2		(4	)		3
Total revenues	$	20		$	849		$	76		$	2	$	(3	)	$	944
Benefits & expenses:
Losses & policy benefits	$	-		$	652		$	58		$	-	$	(1	)	$	709
Reinsurance recoveries		-			(44	)		(9	)		-		-			(53	)
Underwriting, acquisition and insurance expenses		-			242			18			-		-			260
Other operating expenses		5			-			-			1		(2	)		4
Interest expense		13			-			-			-		-			13
Total expenses	$	18		$	850		$	67		$	1	$	(3	)	$	933
Income (loss) before income taxes	$	2		$	(1	)	$	9		$	1	$	-		$	11
Provision (benefit) for income taxes:
Current operating income	$	(2	)	$	17		$	2		$	1	$	-		$	18
Capital gains/losses		2			(2	)		(1	)		-		-			(1	)
Deferred		(1	)		(26	)		2			-		-			(25	)
Total provision (benefit) for income taxes	$	(1	)	$	(11	)	$	3		$	1	$	-		$	(8	)
Operating income (loss)	$	(1	)	$	15		$	7		$	-	$	(1	)	$	20
Net income - current year	$	3		$	10		$	6		$	-	$	-		$	19
Net income - prior year	$	7		$	140		$	8		$	1	$	-		$	156

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

 

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)	$	-	$	5,975	$	5,954	$	5,850		$	5,818		$	5,924		$	5,804		$	5,759
Equities (fair value)		-		1,865		2,113		2,203			2,175			1,928			1,862			2,013
Short-term investments (fair value)		-		-		-		-			-			-			-			-
Fixed maturities - pretax net unrealized gain		-		439		388		320			314			494			363			287
Equities - pretax net unrealized gain		-		361		631		670			604			476			457			635
Loss and loss expense reserves - STAT		-		3,939		3,903		3,788			3,756			3,799			3,781			3,689
Equity GAAP		-		4,523		4,702		4,721			4,656			4,652			4,429			4,506
Surplus - STAT		-		3,513		3,743		3,833			3,777			3,641			3,537			3,692
The Cincinnati Life Insurance Company
Fixed maturities (fair value)	$	-	$	2,652	$	2,528	$	2,449		$	2,315		$	1,867		$	1,859		$	2,055
Equities (fair value)		-		28		37		102			103			108			100			114
Short-term investments (fair value)		-		-		-		-			-			-			-			-
Fixed maturities - pretax net unrealized gain		-		197		174		149			148			215			154			110
Equities - pretax net unrealized gain (loss)		-		12		19		25			(4	)		1			(7	)		7
Equity - GAAP		-		769		783		756			748			775			729			700
Surplus - STAT		-		268		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

Consolidated Cincinnati Insurance Companies

Statutory Statements of Income

	For the Three Months Ended September 30,												For the Nine Months Ended September 30,
(Dollars in millions)	2011			2010			Change			% Change			2011			2010			Change			% Change
Underwriting income
Net premiums written	$	791		$	736		$	55			7		$	2,338		$	2,241		$	97			4
Unearned premiums increase		22			(7	)		29		nm				94			62			32			52
Earned premiums	$	769		$	743		$	26			3		$	2,244		$	2,179		$	65			3
Losses incurred	$	503		$	437		$	66			15		$	1,604		$	1,296		$	308			24
Allocated loss expenses incurred		49			44			5			11			145			127			18			14
Unallocated loss expenses incurred		56			51			5			10			149			137			12			9
Other underwriting expenses incurred		242			239			3			1			726			724			2			0
Workers compensation dividend incurred		4			3			1			33			11			10			1			10
Total underwriting deductions	$	854		$	774		$	80			10		$	2,635		$	2,294		$	341			15
Net underwriting losses	$	(85	)	$	(31	)	$	(54	)		(174	)	$	(391	)	$	(115	)	$	(276	)		(240	)
Investment income
Gross investment income earned	$	89		$	88		$	1			1		$	272		$	268		$	4			1
Net investment income earned		88			87			1			1			268			264			4			2
Net realized capital gains		(2	)		90			(92	)	nm				58			84			(26	)		31
Net investment gains (excl. subs)	$	86		$	177		$	(91	)		(51	)	$	326		$	348		$	(22	)		(6	)
Dividend from subsidiary		25			-			25		nm				25			-			25		nm
Net investment gains (net of tax)	$	111		$	177		$	(66	)		(37	)	$	351		$	348		$	3			1
Other income	$	2		$	1		$	1			100		$	4		$	3		$	1			33
Net income before federal income taxes	$	28		$	147		$	(119	)		(81	)	$	(36	)	$	236		$	(272	)	nm
Federal and foreign income taxes incurred	$	16		$	8		$	8			100		$	(42	)	$	34		$	(76	)	nm
Net income (statutory)	$	12		$	139		$	(127	)		(91	)	$	6		$	202		$	(196	)		(97	)

* 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.

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		$	18		$	6	$	11	$	15		$	17	$	11	$	6	$	16	$	17	$	34	$	34		$	49
New losses $1,000,000-$4,000,000			45			33		50		43			36		29		35		83		64		128		100			142
New losses $250,000-$1,000,000			59			51		54		47			46		53		52		106		104		165		150			200
Case reserve development above $250,000			57			51		34		45			66		30		37		85		68		142		134			178
Large losses subtotal		$	179		$	141	$	149	$	150		$	165	$	123	$	130	$	290	$	253	$	469	$	418		$	569
IBNR incurred			-			18		32		18			16		11		12		51		23		51		41			59
Catastrophe losses incurred			90			289		41		5			28		100		15		330		114		419		143			148
Remaining incurred			234			218		213		184			228		239		228		430		468		664		694			876
Total losses incurred		$	503		$	666	$	435	$	357		$	437	$	473	$	385	$	1,101	$	858	$	1,603	$	1,296		$	1,652
Commercial Lines
New losses greater than $4,000,000		$	18		$	6	$	11	$	10		$	17	$	11	$	6	$	16	$	17	$	34	$	34		$	44
New losses $1,000,000-$4,000,000			40			30		40		38			28		22		32		70		54		110		82			120
New losses $250,000-$1,000,000			45			39		37		31			37		40		40		77		80		122		117			148
Case reserve development above $250,000			52			46		31		41			62		29		32		77		61		129		123			164
Large losses subtotal		$	155		$	121	$	119	$	120		$	144	$	102	$	110	$	240	$	212	$	395	$	356		$	476
IBNR incurred			1			11		24		19			10		7		9		35		17		36		27			45
Catastrophe losses incurred			58			157		26		5			17		57		10		183		66		241		84			89
Remaining incurred			130			124		131		97			141		152		152		255		304		385		444			542
Total losses incurred		$	344		$	413	$	300	$	241		$	312	$	318	$	281	$	713	$	599	$	1,057	$	911		$	1,152
Personal Lines
New losses greater than $4,000,000		$	-		$	-	$	-	$	5		$	-	$	-	$	-	$	-	$	-	$	-	$	-		$	5
New losses $1,000,000-$4,000,000			4			3		9		5			5		7		3		13		10		17		15			20
New losses $250,000-$1,000,000			11			10		14		14			7		10		10		23		20		35		27			41
Case reserve development above $250,000			4			4		3		3			4		1		3		7		4		11		8			11
Large losses subtotal		$	19		$	17	$	26	$	27		$	16	$	18	$	16	$	43	$	34	$	63	$	50		$	77
IBNR incurred			(3	)		4		4		1			4		2		1		9		2		6		7			8
Catastrophe losses incurred			32			131		14		(1	)		11		43		5		145		48		177		59			58
Remaining incurred			103			91		80		86			84		83		75		170		159		273		243			328
Total losses incurred		$	151		$	243	$	124	$	113		$	115	$	146	$	97	$	367	$	243	$	519	$	359		$	471
Excess & Surplus Lines
New losses greater than $4,000,000		$	-		$	-	$	-	$	-		$	-	$	-	$	-	$	-	$	-	$	-	$	-		$	-
New losses $1,000,000-$4,000,000			1			-		1		-			3		-		-		-		-		1		3			3
New losses $250,000-$1,000,000			3			2		3		2			2		3		2		6		5		8		6			9
Case reserve development above $250,000			1			1		-		1			-		-		2		1		2		2		3			3
Large losses subtotal		$	5		$	3	$	4	$	3		$	5	$	3	$	4	$	7	$	7	$	11	$	12		$	15
IBNR incurred			2			3		4		(2	)		2		2		2		7		5		9		7			4
Catastrophe losses incurred			-			1		1		1			-		-		-		2		-		1		-			1
Remaining incurred			1			3		2		1			3		4		1		5		4		6		7			9
Total losses incurred		$	8		$	10	$	11	$	3		$	10	$	9	$	7	$	21	$	16	$	27	$	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.

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			2.3	%		0.8	%		1.4	%		2.0	%		2.3	%		1.5	%		0.8	%		1.1	%		1.2	%		1.5	%		1.6	%			1.7	%
New losses $1,000,000-$4,000,000			5.8			4.6			6.7			5.7			4.8			4.0			4.9			5.6			4.6			5.7			4.6				4.9
New losses $250,000-$1,000,000			7.7			7.0			7.3			6.7			6.2			7.2			7.4			7.2			7.2			7.4			6.9				6.8
Case reserve development above $250,000			7.5			6.9			4.6			5.9			8.9			4.2			5.3			5.8			4.7			6.3			6.2				6.1
Large losses subtotal			23.3	%		19.3	%		20.0	%		20.3	%		22.2	%		16.9	%		18.4	%		19.7	%		17.7	%		20.9	%		19.3	%			19.5	%
IBNR incurred			0.1			2.5			4.4			2.5			2.3			1.6			1.7			3.4			1.6			2.3			1.8				2.0
Total catastrophe losses incurred			11.7			39.6			5.5			0.7			3.8			13.6			2.1			22.3			7.9			18.7			6.5				5.1
Remaining incurred			30.3			29.8			28.5			24.4			30.5			33.0			32.1			29.2			32.6			29.6			31.9				30.0
Total loss ratio			65.4	%		91.2	%		58.4	%		47.9	%		58.8	%		65.1	%		54.3	%		74.6	%		59.8	%		71.5	%		59.5	%			56.6	%
Commercial Lines
New losses greater than $4,000,000			3.2	%		1.1	%		1.9	%		1.8	%		3.1	%		2.0	%		1.1	%		1.5	%		1.6	%		2.1	%		2.1	%			2.0	%
New losses $1,000,000-$4,000,000			7.3			5.5			7.5			7.0			5.1			4.1			6.1			6.5			5.1			6.8			5.1				5.6
New losses $250,000-$1,000,000			8.1			7.4			6.9			5.8			6.7			7.4			7.7			7.1			7.5			7.5			7.3				6.9
Case reserve development above $250,000			9.3			8.7			5.7			7.4			11.4			5.4			6.2			7.2			5.8			7.9			7.7				7.6
Large losses subtotal			27.9	%		22.7	%		22.0	%		22.0	%		26.3	%		18.9	%		21.1	%		22.3	%		20.0	%		24.3	%		22.2	%			22.1	%
IBNR incurred			0.2			2.0			4.4			3.3			1.9			1.3			1.8			3.3			1.6			2.2			1.7				2.1
Total catastrophe losses incurred			10.4			29.6			4.9			1.0			3.2			10.5			1.8			17.1			6.2			14.7			5.2				4.1
Remaining incurred			23.3			23.3			24.2			17.8			25.7			28.3			29.0			23.7			28.6			23.6			27.6				25.2
Total loss ratio			61.8	%		77.6	%		55.5	%		44.1	%		57.1	%		59.0	%		53.7	%		66.4	%		56.4	%		64.8	%		56.7	%			53.5	%
Personal Lines
New losses greater than $4,000,000			0.0	%		0.0	%		0.0	%		2.7	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%			0.7	%
New losses $1,000,000-$4,000,000			2.2			2.0			4.8			2.3			2.8			4.4			1.5			3.5			3.0			3.0			2.9				2.8
New losses $250,000-$1,000,000			6.0			5.4			7.1			7.8			4.0			5.6			5.5			6.2			5.6			6.1			5.0				5.7
Case reserve development above $250,000			1.9			2.3			1.7			1.8			2.0			0.6			1.9			2.0			1.2			2.0			1.5				1.6
Large losses subtotal			10.1	%		9.7	%		13.6	%		14.6	%		8.8	%		10.6	%		8.9	%		11.7	%		9.8	%		11.1	%		9.4	%			10.8	%
IBNR incurred			(1.5	)		2.4			2.3			0.8			2.4			0.9			0.3			2.3			0.6			1.0			1.2				1.1
Total catastrophe losses incurred			16.4			73.0			7.4			(0.3	)		6.0			23.8			3.0			39.2			13.5			31.4			11.0				8.1
Remaining incurred			53.5			50.6			41.6			45.3			46.0			47.1			43.1			46.0			45.1			48.6			45.4				45.4
Total loss ratio			78.5	%		135.7	%		64.9	%		60.4	%		63.2	%		82.4	%		55.3	%		99.2	%		69.0	%		92.1	%		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	%		0.0	%			0.0	%
New losses $1,000,000-$4,000,000			0.0			0.0			0.0			0.0			19.4			0.0			0.0			0.0			0.0			0.0			7.1				5.1
New losses $250,000-$1,000,000			13.5			12.4			25.8			17.5			16.7			18.8			16.9			18.7			19.9			16.8			18.7				18.4
Case reserve development above $250,000			9.3			2.5			2.7			1.8			2.5			2.7			20.7			2.6			11.6			5.1			13.1				14.2
Large losses subtotal			22.8	%		14.9	%		28.5	%		19.3	%		38.6	%		21.5	%		37.6	%		21.3	%		31.5	%		21.9	%		38.9	%			37.7	%
IBNR incurred			12.5			17.1			26.1			(13.2	)		14.9			23.5			18.4			21.3			23.7			18.1			18.5				9.6
Total catastrophe losses incurred			2.4			4.2			2.8			(0.1	)		4.6			0.0			0.0			3.6			0.0			3.1			1.7				1.2
Remaining incurred			3.4			13.4			20.2			14.7			14.2			32.5			9.4			16.6			18.3			11.8			18.8				17.4
Total loss ratio			41.1	%		49.6	%		77.6	%		20.7	%		72.3	%		77.5	%		65.4	%		62.8	%		73.5	%		54.9	%		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.

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			3		1		2		3		3		2		1		3		3		6		6			9
New losses $1,000,000-$4,000,000			25		18		30		23		20		18		19		48		37		73		57			80
New losses $250,000-$1,000,000			129		122		122		123		112		117		123		244		240		373		352			475
Case reserve development above $250,000			84		81		68		71		101		73		77		149		143		233		237			308
Large losses total			241		222		222		220		236		210		220		444		423		685		652			872
Commercial Lines
New losses greater than $4,000,000			3		1		2		2		3		2		1		3		3		6		6			8
New losses $1,000,000-$4,000,000			21		15		24		20		15		12		17		39		29		60		44			64
New losses $250,000-$1,000,000			98		97		85		79		88		88		95		182		183		280		271			350
Case reserve development above $250,000			72		70		59		70		93		70		67		129		137		201		230			300
Large losses total			194		183		170		171		199		172		180		353		352		547		551			722
Personal Lines
New losses greater than $4,000,000			-		-		-		1		-		-		-		-		-		-		-			1
New losses $1,000,000-$4,000,000			4		3		6		3		3		6		2		9		8		13		11			14
New losses $250,000-$1,000,000			26		20		29		38		19		24		24		49		48		75		67			105
Case reserve development above $250,000			9		10		8		-		7		2		5		18		7		27		14			23
Large losses total			39		33		43		42		29		32		31		76		63		115		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		5		8		6		5		5		4		13		9		18		14			20
Case reserve development above $250,000			3		1		1		1		1		1		5		2		6		5		7			8
Large losses total			8		6		9		7		8		6		9		15		15		23		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.

Consolidated Cincinnati Insurance Companies

Agency Direct Written Premiums by Agency State by Line of Business for the Nine Months Ended September 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	$	96.6	$	72.2	$	46.4	$	-	$	15.3	$	17.8	$	4.3	$	95.7	$	71.9	$	25.1	$	7.6	$	452.6	$	434.8		3.4			4.0			39.5			4.1
IL		42.5		32.7		20.4		37.9		8.8		6.1		2.5		22.6		17.7		5.8		4.3		201.2		192.6		2.8			9.4			13.2			4.5
IN		33.4		27.8		16.5		19.3		6.1		5.1		2.0		24.1		23.1		6.1		5.9		169.3		156.9		6.0			10.9			21.4			7.9
PA		34.5		23.5		23.4		36.5		7.8		4.9		1.7		6.4		5.0		2.8		2.5		149.0		143.4		2.9			10.4			29.8			3.9
GA		18.9		16.9		13.1		8.4		6.1		4.5		0.9		25.6		23.9		7.1		4.1		129.4		125.1		(0.1	)		6.6			28.9			3.5
NC		23.5		21.4		14.5		13.7		10.9		6.1		1.5		12.4		8.9		4.0		2.4		119.6		110.0		1.5			41.8			34.5			8.6
MI		23.7		16.2		10.8		12.2		7.3		4.6		1.4		12.8		12.4		2.8		2.6		106.9		98.7		4.0			20.0			26.0			8.3
KY		15.9		17.9		10.9		2.3		4.7		2.4		0.9		19.0		14.8		4.1		2.3		95.2		89.6		4.0			8.7			26.1			6.3
VA		21.5		18.1		14.1		13.0		3.8		4.5		1.2		7.5		6.3		2.3		1.9		94.1		94.3		(1.3	)		2.2			25.8			(0.3	)
TN		17.8		16.5		11.4		6.8		7.6		4.4		1.2		8.8		9.4		3.2		1.2		88.2		82.1		4.5			17.0			7.9			7.3
WI		18.6		13.2		8.0		19.6		2.8		2.2		1.3		7.0		6.2		2.7		1.7		83.2		81.0		1.7			5.3			25.0			2.8
AL		12.6		14.3		5.8		0.6		6.3		1.8		0.8		13.3		20.7		4.7		2.4		83.2		78.3		3.6			7.2			58.2			6.3
MO		15.7		15.3		10.0		8.8		4.7		1.9		1.0		3.5		4.8		1.1		2.8		69.5		67.3		0.0			18.7			35.0			3.2
FL		16.9		16.0		6.3		0.8		1.4		1.6		0.7		6.8		9.0		1.8		2.0		63.3		65.4		(1.6	)		(9.8	)		35.5			(3.2	)
MN		15.4		12.6		6.6		5.7		2.6		1.7		1.0		6.9		6.4		1.8		1.9		62.6		58.0		5.3			14.1			33.1			8.0
IA		14.2		10.9		6.5		14.1		3.0		2.9		1.1		3.5		3.5		1.4		1.0		62.2		63.3		(4.7	)		15.9			39.0			(1.8	)
TX		15.3		12.0		9.4		1.9		0.7		1.0		0.9		-		-		-		5.4		46.5		30.2		51.4			62.4			79.9			54.2
NY		22.3		7.6		8.4		1.9		1.0		2.1		0.6		-		-		0.6		0.7		45.2		45.8		(2.6	)	nm				9.3			(1.2	)
MD		10.0		5.9		8.4		7.0		1.0		1.8		0.4		1.1		1.8		0.5		1.1		39.1		36.0		6.0			42.0			7.7			8.4
KS		6.0		6.9		3.7		6.0		2.5		1.2		0.4		3.7		4.6		1.1		0.5		36.5		37.2		(4.9	)		6.1			54.9			(1.7	)
AR		6.0		8.6		4.2		2.2		4.1		1.5		0.5		3.0		3.3		1.0		1.2		35.7		33.7		0.8			23.3			41.7			5.8
SC		7.5		5.9		4.4		2.7		1.7		1.5		0.2		1.9		1.4		0.5		0.6		28.3		29.2		(8.2	)		56.8			(17.8	)		(3.1	)
UT		8.3		4.0		4.7		0.1		0.6		2.2		0.3		3.9		1.6		0.3		0.9		26.8		23.3		6.0			69.9			(2.2	)		15.2
AZ		7.9		5.2		6.7		1.2		0.6		0.8		0.4		1.3		1.1		0.4		1.0		26.6		24.0		6.0			49.6			55.0			10.6
MT		8.4		5.3		4.7		-		0.8		0.4		0.4		1.5		1.3		0.3		0.3		23.5		23.4		(2.5	)		26.7			(3.5	)		0.5
NE		4.9		4.5		2.5		4.4		1.1		1.0		0.3		0.6		0.7		0.2		0.8		20.9		21.0		(3.0	)		5.5			111.9			(0.3	)
ID		6.1		4.2		4.1		0.1		0.6		0.9		0.3		1.4		0.8		0.2		0.5		19.2		16.7		9.7			62.3			36.9			14.8
WV		4.3		3.8		3.7		1.2		1.6		0.7		0.3		-		0.5		0.1		1.3		17.6		16.3		6.4			(1.3	)		35.3			7.9
VT		3.0		2.6		2.0		4.4		0.6		0.9		0.2		0.9		0.9		0.3		0.4		16.3		15.9		(1.7	)		25.8			50.2			2.1
CO		3.9		3.7		2.9		0.3		-		0.6		0.3		-		0.2		-		0.5		12.3		7.7		61.8			7.1			48.9			60.0
ND		4.1		2.9		2.2		-		0.8		0.7		0.2		0.5		0.5		0.1		0.2		12.2		11.0		9.9			15.6			26.4			10.6
NH		2.2		1.7		1.0		1.9		0.5		0.7		0.1		0.8		0.8		0.3		0.4		10.5		9.4		8.2			30.0			22.6			12.2
WA		3.0		1.5		2.1		-		-		0.4		0.2		-		-		-		0.7		7.8		4.8		60.5			(37.4	)		81.0			62.2
SD		1.8		1.5		1.1		2.0		0.4		0.4		0.1		-		-		-		0.3		7.6		7.0		9.2			13.2			17.3			9.5
DE		2.0		1.5		1.5		1.7		0.3		0.2		0.1		-		-		-		-		7.3		6.8		8.4			8.2		nm				8.4
NM		2.0		1.0		1.1		0.5		0.2		0.7		-		-		-		-		0.3		5.8		5.5		6.4		nm				11.1			6.7
OR		1.2		0.7		0.9		0.1		-		0.3		0.1		-		-		-		0.5		3.7		0.3	nm			nm			nm			nm
WY		1.0		0.7		0.4		-		-		0.1		-		-		-		-		0.3		2.5		1.0		157.8			5.5			206.0			159.4
CT		0.4		0.4		0.3		0.2		-		0.1		-		-		-		0.1		0.1		1.6		0.4		234.3			15.0		nm				241.3
All Other		2.0		1.9		1.6		2.9		0.1		1.1		0.1		-		0.1		-		0.3		10.2		9.3		7.2			26.6		nm				10.1
Total	$	555.2	$	439.4	$	307.0	$	242.4	$	118.4	$	93.5	$	30.0	$	296.2	$	263.6	$	83.1	$	64.7	$	2,493.3	$	2,356.7		3.7			9.7			34.2			5.8
Other Direct		-		0.8		-		2.1		-		-		-		0.1		0.2		-		-		3.2		3.2		(2.7	)		33.0		nm				(0.9	)
Total Direct	$	555.2	$	440.2	$	307.0	$	244.5	$	118.4	$	93.5	$	30.0	$	296.3	$	263.8	$	83.1	$	64.7	$	2,496.5	$	2,359.9		3.7			9.7			34.2			5.8

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.

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		$	175		$	177		$	189		$	166		$	161		$	168		$	191		$	366		$	359		$	541		$	520			$	686
Earned premiums			180			180			172			175			182			172			164			352			336			532			518				693
Current accident year before catastrophe losses			64.1	%		66.0	%		78.8	%		100.3	%		75.0	%		73.6	%		71.0	%		72.3	%		72.4	%		69.5	%		73.3	%			80.1	%
Current accident year catastrophe losses			-			-			-			-			-			-			-			-			-			-			-				-
Prior accident years before catastrophe losses			(26.7	)		(27.2	)		(32.3	)		(50.5	)		(18.5	)		(25.3	)		(12.7	)		(29.7	)		(19.2	)		(28.7	)		(18.9	)			(26.9	)
Prior accident years catastrophe losses			-			-			-			-			-			-			-			-			-			-			-				-
Total loss and loss expense ratio			37.4	%		38.8	%		46.5	%		49.8	%		56.5	%		48.3	%		58.3	%		42.6	%		53.2	%		40.8	%		54.4	%			53.2	%
Commercial property:
Written premiums		$	132		$	123		$	132		$	122		$	122		$	124		$	129		$	255		$	253		$	387		$	375			$	497
Earned premiums			128			115			126			124			123			121			121			241			242			369			365				489
Current accident year before catastrophe losses			77.6	%		76.8	%		64.8	%		54.6	%		60.5	%		56.5	%		62.2	%		70.5	%		59.4	%		73.0	%		59.7	%			58.4	%
Current accident year catastrophe losses			33.8			78.8			15.2			2.0			10.3			39.1			10.6			45.6			24.8			41.5			20.0				15.4
Prior accident years before catastrophe losses			(4.9	)		(1.7	)		8.0			(1.2	)		1.3			(3.1	)		0.5			3.4			(1.4	)		0.5			(0.4	)			(0.6	)
Prior accident years catastrophe losses			3.7			1.1			3.4			0.3			(1.3	)		(2.4	)		(2.3	)		2.3			(2.3	)		2.8			(2.0	)			(1.4	)
Total loss and loss expense ratio			110.2	%		155.0	%		91.4	%		55.7	%		70.8	%		90.1	%		71.0	%		121.8	%		80.5	%		117.8	%		77.3	%			71.8	%
Commercial auto:
Written premiums		$	96		$	102		$	107		$	92		$	91		$	99		$	103		$	209		$	202		$	305		$	293			$	385
Earned premiums			100			96			96			97			96			96			95			192			191			292			287				384
Current accident year before catastrophe losses			67.8	%		72.6	%		76.5	%		75.5	%		67.1	%		69.5	%		68.1	%		74.5	%		68.8	%		72.2	%		68.2	%			70.0	%
Current accident year catastrophe losses			2.5			6.2			0.3			0.4			(0.5	)		4.4			-			3.3			2.2			3.0			1.3				1.1
Prior accident years before catastrophe losses			3.5			(11.0	)		(24.2	)		(20.8	)		(5.3	)		(0.8	)		(6.1	)		(17.6	)		(3.4	)		(10.3	)		(4.0	)			(8.2	)
Prior accident years catastrophe losses			(0.1	)		(0.1	)		(0.4	)		-			-			(0.2	)		(1.0	)		(0.2	)		(0.6	)		(0.2	)		(0.4	)			(0.3	)
Total loss and loss expense ratio			73.7	%		67.7	%		52.2	%		55.1	%		61.3	%		72.9	%		61.0	%		60.0	%		67.0	%		64.7	%		65.1	%			62.6	%
Workers' compensation:
Written premiums		$	71		$	73		$	90		$	75		$	68		$	72		$	95		$	163		$	167		$	234		$	235			$	310
Earned premiums			78			81			76			81			77			79			74			157			153			235			230				311
Current accident year before catastrophe losses			119.2	%		108.5	%		95.6	%		92.5	%		127.5	%		103.2	%		103.3	%		102.3	%		103.2	%		107.9	%		111.3	%			106.5	%
Current accident year catastrophe losses			-			-			-			-			-			-			-			-			-			-			-				-
Prior accident years before catastrophe losses			(28.4	)		(28.9	)		(4.1	)		(9.8	)		(15.3	)		(13.3	)		(11.9	)		(16.9	)		(12.6	)		(20.7	)		(13.5	)			(12.6	)
Prior accident years catastrophe losses			-			-			-			-			-			-			-			-			-			-			-				-
Total loss and loss expense ratio			90.8	%		79.6	%		91.5	%		82.7	%		112.2	%		89.9	%		91.4	%		85.4	%		90.6	%		87.2	%		97.8	%			93.9	%
Specialty package:
Written premiums		$	36		$	27		$	37		$	37		$	37		$	36		$	39		$	64		$	75		$	100		$	112			$	149
Earned premiums			36			27			37			37			38			37			37			64			74			100			112				149
Current accident year before catastrophe losses			91.6	%		93.8	%		62.7	%		47.1	%		60.8	%		66.1	%		70.5	%		75.7	%		68.2	%		81.5	%		65.8	%			61.1	%
Current accident year catastrophe losses			25.7			223.8			9.2			7.2			18.9			23.0			8.5			99.4			15.9			72.7			16.8				14.5
Prior accident years before catastrophe losses			19.6			1.8			15.1			(19.1	)		9.6			(0.7	)		17.4			9.5			8.3			13.2			8.7				1.8
Prior accident years catastrophe losses			(0.9	)		(0.7	)		(1.5	)		(0.3	)		(0.2	)		(2.8	)		(7.4	)		(1.1	)		(5.1	)		(1.1	)		(3.4	)			(2.6	)
Total loss and loss expense ratio			136.0	%		318.7	%		85.5	%		34.9	%		89.1	%		85.6	%		89.0	%		183.5	%		87.3	%		166.3	%		87.9	%			74.8	%
Surety and executive risk:
Written premiums		$	28		$	26		$	24		$	23		$	23		$	24		$	23		$	50		$	47		$	78		$	70			$	93
Earned premiums			26			25			25			24			22			25			24			50			49			76			71				95
Current accident year before catastrophe losses			54.7	%		47.9	%		54.7	%		75.7	%		91.2	%		53.9	%		47.1	%		51.3	%		50.5	%		52.4	%		63.4	%			66.5	%
Current accident year catastrophe losses			-			-			-			-			-			-			-			-			-			-			-				-
Prior accident years before catastrophe losses			32.5			19.4			41.4			43.8			(17.3	)		(17.7	)		4.0			30.2			(6.9	)		31.0			(10.2	)			3.4
Prior accident years catastrophe losses			-			-			-			-			-			-			-			-			-			-			-				-
Total loss and loss expense ratio			87.2	%		67.3	%		96.1	%		119.5	%		73.9	%		36.2	%		51.1	%		81.5	%		43.6	%		83.4	%		53.2	%			69.9	%
Machinery and equipment:
Written premiums		$	9		$	9		$	9		$	9		$	9		$	9		$	9		$	18		$	17		$	27		$	26			$	35
Earned premiums			9			9			8			8			9			8			8			17			16			26			25				33
Current accident year before catastrophe losses			38.7	%		32.0	%		28.2	%		21.4	%		20.4	%		48.3	%		23.0	%		30.1	%		35.8	%		33.1	%		30.6	%			28.2	%
Current accident year catastrophe losses			2.4			0.2			0.2			(0.3	)		(1.7	)		1.7			0.3			0.2			1.0			0.9			0.1				-
Prior accident years before catastrophe losses			(1.6	)		6.9			8.5			(3.3	)		(6.8	)		1.8			(15.9	)		7.7			(6.9	)		4.5			(6.9	)			(6.0	)
Prior accident years catastrophe losses			-			-			-			-			-			0.1			(1.3	)		-			(0.6	)		-			(0.4	)			(0.3	)
Total loss and loss expense ratio			39.5	%		39.1	%		36.9	%		17.8	%		11.9	%		51.9	%		6.1	%		38.0	%		29.3	%		38.5	%		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.

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		$	107		$	104		$	82		$	84		$	98		$	97		$	73		$	186		$	170		$	293		$	268			$	352
Earned premiums			94			90			89			87			86			83			81			179			164			273			250				337
Current accident year before catastrophe losses			66.6	%		67.3	%		68.2	%		81.0	%		68.3	%		70.8	%		62.8	%		67.7	%		66.8	%		67.4	%		67.3	%			70.9	%
Current accident year catastrophe losses			1.5			10.3			1.3			-			0.2			4.2			0.1			5.8			2.2			4.3			1.5				1.1
Prior accident years before catastrophe losses			1.7			(5.0	)		(5.3	)		(2.4	)		(0.3	)		(1.2	)		(4.5	)		(5.1	)		(2.8	)		(2.8	)		(1.9	)			(2.1	)
Prior accident years catastrophe losses			(0.1	)		(0.1	)		(0.4	)		(0.1	)		(0.1	)		(0.2	)		(0.2	)		(0.2	)		(0.2	)		(0.2	)		(0.2	)			(0.1	)
Total loss and loss expense ratio			69.7	%		72.5	%		63.8	%		78.5	%		68.1	%		73.6	%		58.2	%		68.2	%		66.0	%		68.7	%		66.7	%			69.8	%
Homeowner:
Written premiums		$	87		$	78		$	68		$	75		$	83		$	81		$	60		$	146		$	141		$	233		$	224			$	299
Earned premiums			74			66			76			74			72			72			70			142			142			216			214				289
Current accident year before catastrophe losses			86.2	%		97.8	%		71.4	%		78.0	%		72.0	%		70.2	%		67.2	%		83.6	%		68.6	%		84.5	%		69.8	%			72.0	%
Current accident year catastrophe losses			40.3			175.4			22.1			0.9			15.5			54.2			7.2			92.7			30.9			74.7			25.8				19.3
Prior accident years before catastrophe losses			(6.1	)		(0.5	)		2.6			(5.0	)		(0.9	)		0.8			1.9			1.1			1.3			(1.4	)		0.6				(0.9	)
Prior accident years catastrophe losses			(1.8	)		(0.1	)		(5.8	)		(1.8	)		(2.1	)		(1.4	)		(0.3	)		(3.1	)		(0.8	)		(2.7	)		(1.3	)			(1.4	)
Total loss and loss expense ratio			118.6	%		272.6	%		90.3	%		72.1	%		84.5	%		123.8	%		76.0	%		174.3	%		100.0	%		155.1	%		94.9	%			89.0	%
Other personal:
Written premiums		$	28		$	28		$	23		$	24		$	27		$	26		$	22		$	51		$	48		$	79		$	75			$	99
Earned premiums			25			24			25			24			24			24			23			49			47			74			71				95
Current accident year before catastrophe losses			87.0	%		88.2	%		55.9	%		60.9	%		70.1	%		69.1	%		56.1	%		71.9	%		62.6	%		77.0	%		65.1	%			64.1	%
Current accident year catastrophe losses			10.4			34.5			3.8			1.3			4.7			5.9			3.2			19.0			4.6			16.1			4.7				3.8
Prior accident years before catastrophe losses			(36.4	)		(18.4	)		2.3			(29.7	)		(24.1	)		(21.4	)		(7.4	)		(7.9	)		(14.4	)		(17.6	)		(17.7	)			(20.8	)
Prior accident years catastrophe losses			(0.6	)		(0.5	)		(0.8	)		(0.4	)		(0.4	)		(0.6	)		(0.4	)		(0.6	)		(0.5	)		(0.6	)		(0.5	)			(0.5	)
Total loss and loss expense ratio			60.4	%		103.8	%		61.2	%		32.1	%		50.3	%		53.0	%		51.5	%		82.4	%		52.3	%		74.9	%		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.

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 September 30, 2011
Commercial casualty	$	196	$	85	$	281	$	(75	)	$	24		$	(10	)	$	(61	)	$	121		$	24		$	75	$	220
Commercial property		310		34		344		124			51			11			186			434			51			45		530
Commercial auto		181		27		208		(6	)		(5	)		(3	)		(14	)		175			(5	)		24		194
Workers' compensation		167		30		197		8			6			(1	)		13			175			6			29		210
Specialty packages		140		17		157		41			18			21			80			181			18			38		237
Surety and executive risk		46		8		54		(5	)		4			12			11			41			4			20		65
Machinery and equipment		7		1		8		1			1			-			2			8			1			1		10
Total commercial lines		1,047		202		1,249		88			99			30			217			1,135			99			232		1,466
Personal auto		172		20		192		1			1			2			4			173			1			22		196
Homeowners		327		31		358		25			42			5			72			352			42			36		430
Other personal		44		4		48		4			10			1			15			48			10			5		63
Total personal lines		543		55		598		30			53			8			91			573			53			63		689
Commercial casualty & property		12		3		15		8			9			3			20			20			9			6		35
Total excess & surplus lines		12		3		15		8			9			3			20			20			9			6		35
Total property casualty	$	1,602	$	260	$	1,862	$	126		$	161		$	41		$	328		$	1,728		$	161		$	301	$	2,190
Ceded loss and loss expense incurred at September 30, 2011
Commercial casualty	$	4	$	1	$	5	$	(2	)	$	-		$	-		$	(2	)	$	2		$	-		$	1	$	3
Commercial property		45		2		47		36			13			-			49			81			13			2		96
Commercial auto		3		-		3		1			1			-			2			4			1			-		5
Workers' compensation		7		-		7		(1	)		(1	)		-			(2	)		6			(1	)		-		5
Specialty packages		34		-		34		25			11			-			36			59			11			-		70
Surety and executive risk		12		2		14		(13	)		-			-			(13	)		(1	)		-			2		1
Machinery and equipment		-		-		-		-			-			-			-			-			-			-		-
Total commercial lines		105		5		110		46			24			-			70			151			24			5		180
Personal auto		4		1		5		2			2			-			4			6			2			1		9
Homeowners		47		3		50		28			17			-			45			75			17			3		95
Other personal		4		-		4		2			1			-			3			6			1			-		7
Total personal lines		55		4		59		32			20			-			52			87			20			4		111
Commercial casualty & property		-		-		-		-			1			-			1			-			1			-		1
Total excess & surplus lines		-		-		-		-			1			-			1			-			1			-		1
Total property casualty	$	160	$	9	$	169	$	78		$	45		$	-		$	123		$	238		$	45		$	9	$	292
Net loss and loss expense incurred at September 30, 2011
Commercial casualty	$	192	$	84	$	276	$	(73	)	$	24		$	(10	)	$	(59	)	$	119		$	24		$	74	$	217
Commercial property		265		32		297		88			38			11			137			353			38			43		434
Commercial auto		178		27		205		(7	)		(6	)		(3	)		(16	)		171			(6	)		24		189
Workers' compensation		160		30		190		9			7			(1	)		15			169			7			29		205
Specialty packages		106		17		123		16			7			21			44			122			7			38		167
Surety and executive risk		34		6		40		8			4			12			24			42			4			18		64
Machinery and equipment		7		1		8		1			1			-			2			8			1			1		10
Total commercial lines		942		197		1,139		42			75			30			147			984			75			227		1,286
Personal auto		168		19		187		(1	)		(1	)		2			-			167			(1	)		21		187
Homeowners		280		28		308		(3	)		25			5			27			277			25			33		335
Other personal		40		4		44		2			9			1			12			42			9			5		56
Total personal lines		488		51		539		(2	)		33			8			39			486			33			59		578
Commercial casualty & property		12		3		15		8			8			3			19			20			8			6		34
Total excess & surplus lines		12		3		15		8			8			3			19			20			8			6		34
Total property casualty	$	1,442	$	251	$	1,693	$	48		$	116		$	41		$	205		$	1,490		$	116		$	292	$	1,898

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		$	730		$	717		$	708		$	648		$	677		$	685		$	682		$	1,425		$	1,367		$	2,155		$	2,044			$	2,692
Agency new business written premiums			115			117			102			107			109			106			92			219			198			334			307				414
Other written premiums			(54	)		(66	)		(31	)		(33	)		(50	)		(42	)		(18	)		(97	)		(60	)		(151	)		(110	)			(143	)
Reported written premiums – statutory*		$	791		$	768		$	779		$	722		$	736		$	749		$	756		$	1,547		$	1,505		$	2,338		$	2,241			$	2,963
Unearned premium change			(22	)		(38	)		(34	)		23			7			(21	)		(48	)		(72	)		(69	)		(94	)		(62	)			(39	)
Earned premiums		$	769		$	730		$	745		$	745		$	743		$	728		$	708		$	1,475		$	1,436		$	2,244		$	2,179			$	2,924
Year over year change %
Agency renewal written premiums			8	%		5	%		4	%		2	%		1	%		3	%		(2	) %		4	%		0	%		5	%		1	%			1	%
Agency new business written premiums			6			10			11			14			2			(1	)		(5	)		11			(3	)		9			(1	)			2
Other written premiums			(8	)		(57	)		(72	)		33			(9	)		16			(29	)		(62	)		6			(37	)		0				10
Reported written premiums – statutory*			7			3			3			6			1			4			(3	)		3			0			4			0				2
Paid losses and loss expenses
Losses paid		$	481		$	560		$	404		$	400		$	421		$	382		$	334		$	964		$	716		$	1,442		$	1,137			$	1,537
Loss expenses paid			85			82			85			93			84			72			80			166			151			251			235				328
Loss and loss expenses paid		$	566		$	642		$	489		$	493		$	505		$	454		$	414		$	1,130		$	867		$	1,693		$	1,372			$	1,865
Statutory combined ratio
Loss ratio			65.4	%		91.2	%		58.4	%		47.7	%		58.8	%		65.1	%		54.3	%		74.6	%		59.8	%		71.5	%		59.5	%			56.5	%
Allocated loss expense ratio			6.4			7.0			6.0			6.7			5.9			5.7			6.0			6.5			5.8			6.4			5.9				6.1
Unallocated loss expense ratio			7.3			5.9			6.7			6.5			6.9			5.2			6.7			6.3			6.0			6.7			6.2				6.3
Net underwriting expense ratio			31.1			31.3			32.2			33.3			32.9			31.3			34.1			31.8			32.7			31.5			32.8				32.9
Statutory combined ratio			110.2	%		135.4	%		103.3	%		94.2	%		104.5	%		107.3	%		101.1	%		119.2	%		104.3	%		116.1	%		104.4	%			101.8	%
Contribution from catastrophe losses			12.0			39.8			5.5			0.7			3.8			13.6			2.1			22.5			8.0			18.9			6.5				5.1
Statutory combined ratio excluding catastrophe losses			98.2	%		95.6	%		97.8	%		93.5	%		100.7	%		93.7	%		99.0	%		96.7	%		96.3	%		97.2	%		97.9	%			96.7	%
Commission expense ratio			18.2	%		18.2	%		18.4	%		19.9	%		18.7	%		17.9	%		18.4	%		18.3	%		18.1	%		18.2	%		18.3	%			18.7	%
Other expense ratio			12.9			13.1			13.8			13.4			14.2			13.4			15.7			13.5			14.6			13.3			14.5				14.2
Statutory expense ratio			31.1	%		31.3	%		32.2	%		33.3	%		32.9	%		31.3	%		34.1	%		31.8	%		32.7	%		31.5	%		32.8	%			32.9	%
GAAP combined ratio
GAAP combined ratio			110.6	%		136.6	%		103.9	%		93.1	%		103.9	%		107.6	%		102.6	%		120.1	%		105.2	%		116.8	%		104.7	%			101.7	%
Contribution from catastrophe losses			12.0			39.8			5.5			0.7			3.8			13.6			2.1			22.5			8.0			18.9			6.5				5.1
GAAP combined ratio excluding catastrophe losses			98.6	%		96.8	%		98.4	%		92.4	%		100.1	%		94.0	%		100.5	%		97.6	%		97.2	%		97.9	%		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.

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		$	507		$	500		$	542		$	474		$	479		$	492		$	533		$	1,042		$	1,025		$	1,549		$	1,504			$	1,978
Agency new business written premiums			81			81			71			76			74			73			66			152			139			233			213				289
Other written premiums			(41	)		(44	)		(25	)		(26	)		(42	)		(33	)		(11	)		(69	)		(44	)		(110	)		(86	)			(112	)
Reported written premiums – statutory*		$	547		$	537		$	588		$	524		$	511		$	532		$	588		$	1,125		$	1,120		$	1,672		$	1,631			$	2,155
Unearned premium change			10			(4	)		(48	)		22			36			6			(65	)		(52	)		(59	)		(42	)		(23	)			(1	)
Earned premiums		$	557		$	533		$	540		$	546		$	547		$	538		$	523		$	1,073		$	1,061		$	1,630		$	1,608			$	2,154
Year over year change %
Agency renewal written premiums			6	%		2	%		2	%		(1	) %		(2	) %		1	%		(4	) %		2	%		(2	) %		3	%		(2	) %			(2	) %
Agency new business written premiums			9			11			8			13			(3	)		(8	)		(13	)		9			(10	)		9			(8	)			(3	)
Other written premiums			2			(33	)		(127	)		38			(14	)		23			(57	)		(57	)		14			(28	)		2				14
Reported written premiums – statutory*			7			1			0			4			(3	)		2			(6	)		0			(3	)		3			(3	)			(1	)
Paid losses and loss expenses
Losses paid		$	326		$	327		$	290		$	284		$	290		$	266		$	230		$	618		$	497		$	942		$	786			$	1,070
Loss expenses paid			65			63			69			75			65			58			63			131			120			197			186				261
Loss and loss expenses paid		$	391		$	390		$	359		$	359		$	355		$	324		$	293		$	749		$	617		$	1,139		$	972			$	1,331
Statutory combined ratio
Loss ratio			61.8	%		77.5	%		55.5	%		44.2	%		57.1	%		59.0	%		53.8	%		66.4	%		56.4	%		64.8	%		56.7	%			53.5	%
Allocated loss expense ratio			7.7			8.9			7.0			7.9			6.9			6.5			7.1			8.0			6.8			7.9			6.8				7.1
Unallocated loss expense ratio			7.3			4.4			6.7			6.4			6.7			4.8			6.6			5.5			5.7			6.1			6.0				6.1
Net underwriting expense ratio			32.6			32.2			32.9			33.4			34.8			31.7			31.9			32.6			31.8			32.6			32.7				32.9
Statutory combined ratio			109.4	%		123.0	%		102.1	%		91.9	%		105.5	%		102.0	%		99.3	%		112.5	%		100.7	%		111.4	%		102.2	%			99.6	%
Contribution from catastrophe losses			10.7			29.7			4.9			1.0			3.2			10.4			1.8			17.2			6.2			14.9			5.2				4.1
Statutory combined ratio excluding catastrophe losses			98.7	%		93.3	%		97.2	%		90.9	%		102.3	%		91.6	%		97.5	%		95.3	%		94.5	%		96.5	%		97.0	%			95.5	%
Commission expense ratio			18.1	%		17.7	%		18.5	%		19.0	%		19.0	%		17.6	%		17.2	%		18.1	%		17.4	%		18.1	%		17.9	%			18.1	%
Other expense ratio			14.5			14.5			14.4			14.4			15.8			14.1			14.7			14.5			14.4			14.5			14.8				14.8
Statutory expense ratio			32.6	%		32.2	%		32.9	%		33.4	%		34.8	%		31.7	%		31.9	%		32.6	%		31.8	%		32.6	%		32.7	%			32.9	%
GAAP combined ratio
GAAP combined ratio			107.9	%		124.2	%		104.0	%		90.6	%		103.4	%		101.7	%		102.1	%		114.0	%		101.9	%		111.9	%		102.4	%			99.4	%
Contribution from catastrophe losses			10.7			29.7			4.9			1.0			3.2			10.4			1.8			17.2			6.2			14.9			5.2				4.1
GAAP combined ratio excluding catastrophe losses			97.2	%		94.5	%		99.1	%		89.6	%		100.2	%		91.3	%		100.3	%		96.8	%		95.7	%		97.0	%		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.

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		$	209		$	205		$	156		$	166		$	189		$	187		$	143		$	361		$	330		$	570		$	519			$	685
Agency new business written premiums			25			26			22			23			25			24			18			48			42			73			67				90
Other written premiums			(12	)		(21	)		(5	)		(6	)		(6	)		(7	)		(6	)		(26	)		(13	)		(38	)		(19	)			(25	)
Reported written premiums – statutory*		$	222		$	210		$	173		$	183		$	208		$	204		$	155		$	383		$	359		$	605		$	567			$	750
Unearned premium change			(29	)		(30	)		17			3			(26	)		(25	)		19			(13	)		(6	)		(42	)		(32	)			(29	)
Earned premiums		$	193		$	180		$	190		$	186		$	182		$	179		$	174		$	370		$	353		$	563		$	535			$	721
Year over year change %
Agency renewal written premiums			11	%		10	%		9	%		8	%		7	%		6	%		4	%		9	%		5	%		10	%		6	%			7	%
Agency new business written premiums			0			8			22			15			19			26			29			14			24			9			22				20
Other written premiums			(100	)		(200	)		17			0			25			(40	)		0			(100	)		0			(100	)		10				4
Reported written premiums – statutory*			7			3			12			10			9			7			7			7			7			7			8				9
Paid losses and loss expenses
Losses paid		$	151		$	229		$	109		$	116		$	128		$	114		$	103		$	338		$	217		$	488		$	345			$	461
Loss expenses paid			18			18			15			17			17			14			17			33			30			51			48				65
Loss and loss expenses paid		$	169		$	247		$	124		$	133		$	145		$	128		$	120		$	371		$	247		$	539		$	393			$	526
Statutory combined ratio
Loss ratio			78.4	%		135.7	%		64.9	%		60.5	%		63.2	%		82.4	%		55.3	%		99.3	%		69.0	%		92.2	%		67.0	%			65.4	%
Allocated loss expense ratio			1.9			3.0			2.3			2.5			1.9			2.0			1.9			2.6			2.0			2.4			1.9				2.1
Unallocated loss expense ratio			7.0			10.7			6.9			6.9			7.2			6.7			7.2			8.8			6.9			8.2			7.1				6.9
Net underwriting expense ratio			27.4			29.0			30.3			32.6			28.4			30.1			42.1			29.5			35.3			28.7			32.8				32.7
Statutory combined ratio			114.7	%		178.4	%		104.4	%		102.5	%		100.7	%		121.2	%		106.5	%		140.2	%		113.2	%		131.5	%		108.8	%			107.1	%
Contribution from catastrophe losses			16.8			73.4			7.4			(0.3	)		6.0			23.8			3.0			39.4			13.6			31.7			11.0				8.1
Statutory combined ratio excluding catastrophe losses			97.9	%		105.0	%		97.0	%		102.8	%		94.7	%		97.4	%		103.5	%		100.8	%		99.6	%		99.8	%		97.8	%			99.0	%
Commission expense ratio			17.6	%		18.7	%		17.9	%		21.7	%		17.1	%		18.1	%		22.4	%		18.3	%		20.0	%		18.1	%		19.0	%			19.6	%
Other expense ratio			9.8			10.3			12.4			10.9			11.3			12.0			19.7			11.2			15.3			10.7			13.8				13.1
Statutory expense ratio			27.4	%		29.0	%		30.3	%		32.6	%		28.4	%		30.1	%		42.1	%		29.5	%		35.3	%		28.8	%		32.8	%			32.7	%
GAAP combined ratio
GAAP combined ratio			119.7	%		179.2	%		101.4	%		101.9	%		103.4	%		123.4	%		102.5	%		139.2	%		113.1	%		132.6	%		109.8	%			107.7	%
Contribution from catastrophe losses			16.8			73.4			7.4			(0.3	)		6.0			23.8			3.0			39.4			13.6			31.7			11.0				8.1
GAAP combined ratio excluding catastrophe losses			102.9	%		105.8	%		94.0	%		102.2	%		97.4	%		99.6	%		99.5	%		99.8	%		99.5	%		100.9	%		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.

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		$	14		$	12		$	10		$	8		$	9		$	6		$	6		$	22		$	12		$	36		$	21			$	29
Agency new business written premiums			9			10			9			8			10			9			8			19			17			28			27				35
Other written premiums			(1	)		(1	)		(1	)		(1	)		(2	)		(2	)		(1	)		(2	)		(3	)		(3	)		(5	)			(6	)
Reported written premiums – statutory*		$	22		$	21		$	18		$	15		$	17		$	13		$	13		$	39		$	26		$	61		$	43			$	58
Unearned premium change			(3	)		(4	)		(3	)		(1	)		(3	)		(2	)		(2	)		(7	)		(4	)		(10	)		(7	)			(9	)
Earned premiums		$	19		$	17		$	15		$	14		$	14		$	11		$	11		$	32		$	22		$	51		$	36			$	49
Year over year change %
Agency renewal written premiums			56			100	%		67	%		100	%		200	%		200	%		500	%		83	%		500	%		71			320	%			190	%
Agency new business written premiums			(10	)		11			13			14			0			13			14			12			13			4			8				9
Other written premiums			50			50			0			0		nm			nm				0			33		nm				40			(400	)			(100	)
Reported written premiums – statutory*			29			62			38			50			33			30			86			50			53			42			48				49
Paid losses and loss expenses
Losses paid		$	3		$	4		$	4		$	1		$	3		$	1		$	1		$	8		$	2		$	12		$	5			$	6
Loss expenses paid			2			1			1			1			1			0			0			2			1			3			2				2
Loss and loss expenses paid		$	5		$	5		$	5		$	2		$	4		$	1		$	1		$	10		$	3		$	15		$	7			$	8
Statutory combined ratio
Loss ratio			41.1	%		49.6	%		77.6	%		20.8	%		72.3	%		81.5	%		65.4	%		62.8	%		73.5	%		54.8	%		73.1	%			58.1	%
Allocated loss expense ratio			11.2			(12.8	)		19.1			16.1			23.5			20.4			21.0			2.2			20.7			5.5			21.8				20.1
Unallocated loss expense ratio			9.9			4.7			6.1			2.7			7.9			6.5			5.1			5.3			5.8			7.0			6.5				5.5
Net underwriting expense ratio			30.7			31.6			27.6			39.0			30.8			33.5			38.5			29.8			35.8			30.1			33.9				35.2
Statutory combined ratio			92.9	%		73.1	%		130.4	%		78.6	%		134.5	%		141.9	%		130.0	%		100.1	%		135.8	%		97.4	%		135.3	%			118.9	%
Contribution from catastrophe losses			2.5			4.4			2.8			(0.1	)		4.6			5.6			0.0			3.6			2.7			3.2			1.7				1.2
Statutory combined ratio excluding catastrophe losses			90.4	%		68.7	%		127.6	%		78.7	%		129.9	%		136.3	%		130.0	%		96.5	%		133.1	%		94.2	%		133.6	%			117.7	%
Commission expense ratio			25.1	%		24.5	%		22.2	%		30.7	%		27.0	%		26.0	%		28.2	%		23.5	%		27.0	%		24.1	%		27.0	%			27.9	%
Other expense ratio			5.6			7.1			5.4			8.3			3.8			7.5			10.3			6.3			8.8			6.0			6.9				7.3
Statutory expense ratio			30.7	%		31.6	%		27.6	%		39.0	%		30.8	%		33.5	%		38.5	%		29.8	%		35.8	%		30.1	%		33.9	%			35.2	%
GAAP combined ratio
GAAP combined ratio			93.6	%		74.7	%		133.0	%		75.3	%		129.8	%		137.5	%		127.1	%		102.1	%		132.4	%		99.0	%		131.4	%			115.4	%
Contribution from catastrophe losses			2.5			4.4			2.8			(0.1	)		4.6			5.6			0.0			3.6			2.7			3.2			1.7				1.2
GAAP combined ratio excluding catastrophe losses			91.1	%		70.3	%		130.2	%		75.4	%		125.2	%		131.9	%		127.1	%		98.5	%		129.7	%		95.8	%		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.

The Cincinnati Life Insurance Company

Statutory Statements of Income

	For the Three Months Ended September 30,												For the Nine Months Ended September 30,
(Dollars in millions)	2011			2010			Change			% Change			2011			2010			Change			% Change
Net premiums written	$	60		$	78		$	(18	)		(23	)	$	237		$	275		$	(37	)		(14	)
Net investment income		34			33			1			3			104			101			3			3
Amortization of interest maintenance reserve		-			(1	)		1		nm				-			(2	)		2		nm
Commissions and expense allowances on reinsurance ceded		2			2			-			0			5			5			-			0
Income from fees associated with Separate Accounts		1			-			1		nm				2			1			1			100
Total revenues	$	97		$	112		$	(15	)		(13	)	$	348		$	380		$	(31	)		(8	)
Death benefits and matured endowments	$	17		$	15		$	2			13		$	47		$	41		$	6			15
Annuity benefits		11			10			1			10			37			27			10			37
Disability benefits and benefits under accident and health contracts		(1	)		1			(2	)	nm				(1	)		2			(3	)	nm
Surrender benefits and group conversions		7			6			1			17			19			17			1			12
Interest and adjustments on deposit-type contract funds		3			3			-			0			8			8			-			0
Increase in aggregate reserves for life and accident and health contracts		41			60			(19	)		(32	)		176			222			(46	)		(21	)
Payments on supplementary contracts with life contingencies		-			-			-			0			-			-			-			0
Total benefit expenses	$	78		$	95		$	(17	)		(18	)	$	286		$	317		$	(32	)		(10	)
Commissions	$	9		$	11		$	(2	)		(18	)	$	31		$	35		$	(3	)		(11	)
General insurance expenses and taxes		10			10			-			0			31			28			2			11
Increase in loading on deferred and uncollected premiums		(2	)		(2	)		-			0			(5	)		(5	)		-			0
Net transfers from Separate Accounts		-			(2	)		2		nm				-			(2	)		2		nm
Other deductions		-			-			-			0			-			-			-			0
Total operating expenses	$	17		$	17		$	-			0		$	57		$	56		$	1			2
Federal and foreign income tax benefit		1			(3	)		4		nm				13			(6	)		19		nm
Net gain (loss) from operations before realized capital gains	$	1		$	3		$	(2	)		(67	)	$	(8	)	$	13		$	(21	)	nm
Net realized gains (losses) net of capital gains tax		(1	)		-			(1	)	nm				(18	)		1			(20	)	nm
Net income (loss) (statutory)	$	-		$	3		$	(3	)	nm			$	(26	)	$	14		$	(40	)	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.