8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report: April 26, 2012

(Date of earliest event reported)

CINCINNATI FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Ohio	0-4604	31-0746871
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
6200 S. Gilmore Road, Fairfield, Ohio		45014-5141
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (513) 870-2000

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))

Item 2.02 Results of Operations and Financial Condition.

On April 26, 2012, Cincinnati Financial Corporation issued the attached news release titled “Cincinnati Financial Reports First-Quarter 2012 Results,” furnished as Exhibit 99.1 hereto and incorporated herein by reference. On April 26, 2012, the company also distributed the attached information titled “Supplemental Financial Data,” furnished as Exhibit 99.2 hereto and incorporated herein by reference. This report should not be deemed an admission as to the materiality of any information contained in the news release or supplemental financial data.

In accordance with general instruction B.2 of Form 8-K, the information furnished in this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

Exhibit 99.1 – News release dated April 26, 2012, “Cincinnati Financial Reports First-Quarter 2012 Results”

Exhibit 99.2 – Supplemental Financial Data for the period ending March 31, 2012 distributed April 26, 2012.

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CINCINNATI FINANCIAL CORPORATION
Date: April 26, 2012	/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 First-Quarter 2012 Results

Cincinnati, April 26, 2012 – Cincinnati Financial Corporation (Nasdaq: CINF) today reported:

· First-quarter 2012 net income of $86 million, or 53 cents per share, compared with $61 million, or 38 cents per share, in the first quarter of 2011.

· Operating income* of $77 million, or 48 cents per share, up 43 percent compared with $54 million, or 33 cents per share.

· $25 million increase in first-quarter 2012 net income reflected a $25 million improvement, after taxes, in the contribution from property casualty underwriting – despite the unfavorable effect of $31 million from higher natural catastrophe losses.

· $32.07 book value per share at March 31, 2012, up 3 percent from December 31, 2011.

· 4.6 percent value creation ratio for the first quarter of 2012, compared with 2.9 percent for the 2011 first quarter.

· $1 million difference in adjusted first-quarter 2011 net income compared with originally reported $62 million, due to adoption of an accounting standards update for deferred policy acquisition costs.

Financial Highlights

(Dollars in millions except share data in thousands)	Three months ended March 31,
	2012		2011		Change %
Revenue Highlights
Earned premiums	$	839	$	782		7
Investment income, pre-tax		131		131		0
Total revenues		986		929		6
Income Statement Data
Net income	$	86	$	61		41
Net realized investment gains and losses		9		7		29
Operating income*	$	77	$	54		43
Per Share Data (diluted)
Net income	$	0.53	$	0.38		39
Net realized investment gains and losses		0.05		0.05		0
Operating income*	$	0.48	$	0.33		45
Book value	$	32.07	$	31.27		3
Cash dividend declared	$	0.4025	$	0.40		1
Weighted average shares outstanding		163,145		163,670		0

Insurance Operations First-Quarter Highlights

· 99.1 percent first-quarter 2012 property casualty combined ratio, improved from 104.1 percent for first-quarter 2011.

· 8 percent increase in net written premiums, with all three property casualty segments reporting growth.

· $108 million first-quarter 2012 property casualty new business written premiums, up 6 percent. Agencies appointed since the beginning of 2011 increased their contribution to new business premiums by $9 million for the quarter.

· 4 cents per share contribution from life insurance operating income to first-quarter results, matching first-quarter 2011.

Investment and Balance Sheet Highlights

· $131 million first-quarter 2012 before-tax investment income matched the first quarter of 2011.

· 3 percent increase in fair value of invested assets plus cash at March 31, 2012, including an equity portfolio increase of 6 percent and a 2 percent increase for the bond portfolio.

· $1.076 billion parent company cash and marketable securities at March 31, 2012, up 2 percent from year-end 2011.

* 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 1Q12 Release 1

Ongoing Improvement in Property Casualty Underwriting Results

Steven J. Johnston, president and chief executive officer, commented, “Cincinnati Financial’s first-quarter 2012 income rose more than 40 percent above the 2011 first-quarter result, led by a steady contribution from investment income and improved property casualty insurance underwriting results.

“Our core underwriting results continued trending positively, more than offsetting a $48 million increase in catastrophe losses and leading to an overall property casualty underwriting profit, with a combined ratio of 99.1 percent overall or 88.0 percent before catastrophe losses. Aside from areas where catastrophes occurred, many areas where we operate experienced milder winter weather this year, resulting in lower non-catastrophe weather-related losses for our policyholders. Our first-quarter core combined ratio was about three percentage points better than the stellar fourth-quarter 2011 result, when evaluating both quarters before catastrophe losses, favorable reserve development and last year’s allocation refinement effect.

“Our consistent claims and reserving practices make it possible to report substantial benefits from favorable changes to estimates of reserves that cover losses that occurred in prior periods. Compared with first-quarter 2011, our 2012 first-quarter combined ratio before catastrophes included a 4.0 percentage-point increase in those benefits. Comparing first-quarter 2012 with full-year 2011, the increased benefit was 2.5 percentage points.

“We are thankful to our independent agents for healthy first-quarter growth of property casualty new business, up 6 percent, and net written premiums, up 8 percent. While our premiums rose, paid losses and expenses before catastrophes did not. They declined 1.3 percent, and we also trimmed 1.4 percentage points off our expense ratio compared with this time last year. Our ongoing efforts to improve pricing precision, achieve efficiencies and reduce costs are driving profitable growth. We expect their effects to compound over time and carry us toward ambitious goals.

“Each of our property casualty insurance segments had premium growth, primarily reflecting better renewal pricing along with cumulative effects of agency, territory and product portfolio expansions of recent years. Personal lines renewal written premiums rose 12 percent, benefiting from recent rate increases. Commercial pricing changes for our renewals of standard market policies appeared to strengthen slightly over the quarter in the low- to mid-single-digit range while the average price increase for excess and surplus lines was in the high single digits. Audits of our commercial casualty and workers’ compensation policies, which are initially priced based on estimates of future sales or payroll, contributed $6 million to net written premiums in this year’s first quarter. That is a reversal from last year at this time when we returned premium to policyholders, and it’s a great sign that our policyholders’ businesses are growing again.”

Steady Investment Income, Outstanding Financial Flexibility

“Our investment income came in at $131 million, a result that has varied by only $1 million to $3 million over the past 10 quarters. In addition to our large, diversified bond portfolio that more than covers all of our insurance reserve liabilities, we hold a larger equity portfolio than most insurers. Dividend income from our equity portfolio – $26 million for the first quarter – has helped us achieve stable investment income at a time when many insurers are seeing declines due to the effects of low interest rates on bond portfolios. The equity portfolio also contributed $179 million of the $227 million first-quarter pretax increase in unrealized gains in our investment portfolio. Book value rose to $32.07, up 3 percent from year-end 2011.

“While life insurance operations results also are constrained by low interest rates, their contribution to net earnings also held steady at 4 cents for the first quarters of 2012 and 2011. We value that steadiness, which helps temper the weather volatility inherent to property casualty operations, benefitting our company, our shareholders and the independent agencies that represent us.

“We also value financial flexibility. At March 31, 2012, capitalization and liquidity were stronger than year-end. After payment of our quarterly dividend to shareholders, our holding company had almost $1.1 billion of cash and marketable securities. Our value creation ratio, which considers those dividends as well as growth in book value, was 4.6 percent for the first quarter, a good start for the year. We look forward to increasing our value creation as the year progresses.”

CINF 1Q12 Release 2

Consolidated Property Casualty Insurance Operations

(Dollars in millions)	Three months ended March 31,
	2012			2011			Change %
Earned premiums	$	798		$	745			7
Fee revenues		1			1			0
Total revenues		799			746			7
Loss and loss expenses		539			530			2
Underwriting expenses		251			246			2
Underwriting profit (loss)	$	9		$	(30	)		nm
Ratios as a percent of earned premiums:							Pt. Change
Loss and loss expenses		67.5	%		71.1	%		(3.6	)
Underwriting expenses		31.6			33.0			(1.4	)
Combined ratio		99.1	%		104.1	%		(5.0	)

							Change %
Agency renewal written premiums	$	762		$	708			8
Agency new business written premiums		108			102			6
Other written premiums		(27	)		(31	)		13
Net written premiums	$	843		$	779			8
Ratios as a percent of earned premiums:							Pt. Change
Current accident year before catastrophe losses		68.1	%		73.3	%		(5.2	)
Current accident year catastrophe losses		13.9			5.7			8.2
Prior accident years before catastrophe losses		(11.7	)		(7.7	)		(4.0	)
Prior accident years catastrophe losses		(2.8	)		(0.2	)		(2.6	)
Total loss and loss expenses		67.5	%		71.1	%		(3.6	)
Current accident year combined ratio before catastrophe losses		99.7	%		106.3	%		(6.6	)

· $64 million or 8 percent increase in first-quarter 2012 property casualty net written premiums. Growth reflected the effects of premium growth strategies, better pricing and slowly improving economic conditions.

· $108 million in 2012 new business written by agencies, including $89 million in standard market property casualty production from agencies appointed prior to the beginning of 2011 and $10 million from appointments since then, plus $9 million for excess and surplus lines.

· 1,346 agency relationships in 1,696 reporting locations marketing standard market property casualty insurance products at March 31, 2012, compared with 1,312 agency relationships in 1,648 reporting locations at year-end 2011. 56 new agency appointments were made during the first three months of 2012.

· 5.0 percentage-point first-quarter 2012 combined ratio improvement primarily due to an improving loss ratio before catastrophe losses that offset a 5.6 point increase in natural catastrophe losses.

· 1 percent decline in paid loss and loss expenses, before catastrophes and net of reinsurance, reflecting improving loss experience relative to a 7 percent increase in earned premiums.

· 5.2 percentage-point improvement, to 68.1 percent, for three-month 2012 ratio of accident year losses and loss expenses before catastrophes, driven by a 4.7 point improvement in the ratio for new losses of $250,000 or more per claim.

· 14.5 percentage point first-quarter 2012 benefit from favorable prior accident year reserve development of $116 million, compared with 7.9 percent from $58 million of development for the same period of 2011. Favorable development on catastrophe losses accounted for more than one-third of the difference between the two periods.

· 1.4 percentage-point improvement in the first-quarter underwriting expense ratio, reflecting expense management efforts and higher earned premiums.

CINF 1Q12 Release 3

The following table shows incurred catastrophe losses for the first quarters of 2012 and 2011.

(In millions, net of reinsurance)			Three months ended March 31,
			Comm.		Pers.		E&S
Dates	Event	Region	lines		lines		lines			Total
2012
Feb. 28-29	Hail, wind, tornado	Midwest	$	22	$	8	$	-	$	30
Mar. 2-3	Hail, wind, tornado	Midwest, South		28		45		1		74
All other 2012 catastrophes				2		5		-		7
Development on 2011 and prior catastrophes				(13)		(9)		-		(22)
Calendar year incurred total			$	39	$	49	$	1	$	89
2011
Jan. 31-Feb. 3	Freezing, wind	South, Midwest		5		5		-		10
Feb. 27-28	Hail, wind, tornado	Midwest		5		8		-		13
Mar. 11	Earthquake	Japan		8		-		-		8
All other 2011 catastrophes				5		6		-		11
Development on 2010 and prior catastrophes				4		(5)		-		(1)
Calendar year incurred total			$	27	$	14	$	-	$	41

CINF 1Q12 Release 4

Insurance Operations Highlights

Commercial Lines Insurance Operations

(Dollars in millions)	Three months ended March 31,
	2012			2011			Change %
Earned premiums	$	568		$	540			5
Fee revenues		1			1			0
Total revenues		569			541			5
Loss and loss expenses		348			374			(7	)
Underwriting expenses		187			189			(1	)
Underwriting profit (loss)	$	34		$	(22	)		nm
Ratios as a percent of earned premiums:								Pt. Change
Loss and loss expenses		61.1	%		69.2	%		(8.1	)
Underwriting expenses		33.1			35.1			(2.0	)
Combined ratio		94.2	%		104.3	%		(10.1	)

							Change %
Agency renewal written premiums	$	571		$	542			5
Agency new business written premiums		75			71			6
Other written premiums		(20	)		(25	)		20
Net written premiums	$	626		$	588			6
Ratios as a percent of earned premiums:							Pt. Change
Current accident year before catastrophe losses		67.9	%		74.5	%		(6.6	)
Current accident year catastrophe losses		9.1			4.3			4.8
Prior accident years before catastrophe losses		(13.6	)		(10.2	)		(3.4	)
Prior accident years catastrophe losses		(2.3	)		0.6			(2.9	)
Total loss and loss expenses		61.1	%		69.2	%		(8.1	)
Current accident year combined ratio before catastrophe losses		101.0	%		109.6	%		(8.6	)

· $38 million or 6 percent growth in first-quarter 2012 commercial lines net written premiums, primarily due to higher renewal written premiums.

· $29 million rise in first-quarter renewal written premiums largely reflected commercial lines pricing changes that increased on average in a low- to mid-single-digit range.

· $4 million increase in first-quarter new business written premiums, with growth in approximately half of our states.

· 10.1 percentage-point reduction in the first-quarter combined ratio primarily due to a 4 percent reduction in current accident year losses and loss expenses before catastrophes and a 5 percent increase in earned premiums.

· 6.6 percentage-point improvement, to 67.9 percent, for the three-month 2012 ratio of accident year losses and loss expenses before catastrophes, reflecting a 4.5 point reduction in the ratio for new losses of $250,000 or more per claim and better pricing.

· 3.4 percentage point rise in first-quarter 2012 benefit from favorable prior accident year reserve development before catastrophe losses – reflecting reduced variability in paid losses and lower than anticipated loss emergence on known claims.

CINF 1Q12 Release 5

Personal Lines Insurance Operations

(Dollars in millions)	Three months ended March 31,
	2012			2011			Change %
Earned premiums	$	209		$	190			10
Fee revenues		-			-			nm
Total revenues		209			190			10
Loss and loss expenses		174			141			23
Underwriting expenses		57			52			10
Underwriting loss	$	(22	)	$	(3	)		nm
Ratios as a percent of earned premiums:								Pt. Change
Loss and loss expenses		83.6	%		74.1	%		9.5
Underwriting expenses		27.3			27.4			(0.1	)
Combined ratio		110.9	%		101.5	%		9.4
								Change %
Agency renewal written premiums	$	175		$	156			12
Agency new business written premiums		24			22			9
Other written premiums		(6	)		(5	)		(20	)
Net written premiums	$	193		$	173			12
Ratios as a percent of earned premiums:								Pt. Change
Current accident year before catastrophe losses		67.9	%		67.9	%		0.0
Current accident year catastrophe losses		28.2			10.0			18.2
Prior accident years before catastrophe losses		(7.8	)		(1.2	)		(6.6	)
Prior accident years catastrophe losses		(4.7	)		(2.6	)		(2.1	)
Total loss and loss expenses		83.6	%		74.1	%		9.5
Current accident year combined ratio before
catastrophe losses		95.2	%		95.3	%		(0.1	)

· $20 million or 12 percent growth in first-quarter 2012 personal lines net written premiums, primarily due to higher renewal written premiums that reflect various rate increases – some over several years in succession.

· 9.4 percentage-point rise in first-quarter 2012 combined ratio primarily due to catastrophe losses that were 16.1 points higher.

· 6.6 percentage point rise in first-quarter 2012 benefit from favorable prior accident year reserve development before catastrophe losses – reflecting reduced variability in paid losses and lower than anticipated loss emergence on known claims.

CINF 1Q12 Release 6

Excess and Surplus Lines Insurance Operations

(Dollars in millions)	Three months ended March 31,
	2012			2011			Change %
Earned premiums	$	21		$	15			40
Loss and loss expenses		17			15			13
Underwriting expenses		7			5			40
Underwriting loss	$	(3	)	$	(5	)		40
Ratios as a percent of earned premiums:								Pt. Change
Loss and loss expenses		81.6	%		102.7	%		(21.1	)
Underwriting expenses		32.0			30.0			2.0
Combined ratio		113.6	%		132.7	%		(19.1	)
								Change %
Agency renewal written premiums	$	16		$	10			60
Agency new business written premiums		9			9			0
Other written premiums		(1	)		(1	)		0
Net written premiums	$	24		$	18			33
Ratios as a percent of earned premiums:								Pt. Change
Current accident year before catastrophe losses		78.3	%		98.8	%		(20.5	)
Current accident year catastrophe losses		2.4			1.7			0.7
Prior accident years before catastrophe losses		(0.4	)		1.1			(1.5	)
Prior accident years catastrophe losses		1.3			1.1			0.2
Total loss and loss expenses		81.6	%		102.7	%		(21.1	)
Current accident year combined ratio before
catastrophe losses		110.3	%		128.8	%		(18.5	)

· $6 million or 33 percent growth in first-quarter 2012 excess and surplus lines net written premiums, largely due to the opportunity to renew many accounts for the first time. Growth was also from average renewal price increases that rose to a high-single-digit range.

· 19.1 percentage-point combined ratio improvement for first-quarter 2012, largely due to a 10.9 point reduction from paid losses and loss expenses.

Life Insurance Operations

(In millions)	Three months ended March 31,
	2012		2011		Change %
Term life insurance	$	27	$	25		8
Universal life insurance		7		5		40
Other life insurance, annuity, and disability income products		7		7		0
Earned premiums		41		37		11
Investment income, net of expenses		34		33		3
Other income		-		1		(100	)
Total revenues, excluding realized investment gains and losses		75		71		6
Contract holders benefits		43		45		(4	)
Underwriting expenses		22		16		38
Total benefits and expenses		65		61		7
Net income before income tax and realized investment gains and losses		10		10		0
Income tax		4		3		33
Net income before realized investment gains and losses	$	6	$	7		(14	)

· $4 million or 11 percent growth in first-quarter 2012 earned premiums, including 8 percent for term life insurance, our largest life insurance product line. 1 percent rise in face amount of life policies in force to $78.601 billion at March 31, 2012, from $77.691 billion at year-end 2011.

· $43 million decline to $17 million in first-quarter 2012 fixed annuity deposits received, slowing as planned. Cincinnati Life does not offer variable or indexed products.

· $4 million rise in total revenues before investment gains matched the increase in total benefits and expenses, resulting in first-quarter 2012 profit that was generally in line with first-quarter 2011.

· $21 million or 3 percent first-quarter 2012 growth to $792 million in GAAP shareholders’ equity for The Cincinnati Life Insurance Company.

CINF 1Q12 Release 7

Investment and Balance Sheet Highlights

Investment Operations 

(In millions)	Three months ended March 31,
	2012			2011			Change %
Total investment income, net of expenses, pretax	$	131		$	131			0
Investment interest credited to contract holders		(21	)		(20	)		(5	)
Realized investment gains and losses summary:
Realized investment gains and losses		25			38			(34	)
Change in fair value of securities with embedded derivatives		4			4			0
Other-than-temporary impairment charges		(16	)		(30	)		47
Total realized investment gains and losses		13			12			8
Investment operations profit	$	123		$	123			0

(In millions)	Three months ended March 31,
	2012			2011			Change %
Investment income:
Interest	$	106		$	106			0
Dividends		26			26			0
Other		1			1			0
Investment expenses		(2	)		(2	)		0
Total investment income, net of expenses, pretax		131			131			0
Income taxes		(32	)		(32	)		0
Total investment income, net of expenses, after tax	$	99		$	99			0
Effective tax rate		24.4	%		24.5	%
Average yield pretax		4.5	%		4.6	%
Average yield after tax		3.4	%		3.4	%

· Flat first-quarter 2012 pre-tax investment income, with dividend and interest income matching first-quarter 2011 amounts.

· $228 million or 15 percent first-quarter 2012 increase in pretax unrealized investment portfolio gains, including $179 million in the equity portfolio. $26 million of pretax realized gains were harvested from the investment portfolio during the first quarter of 2012, including $23 million from the equity portfolio.

(Dollars in millions except share data)	At March 31,			At December 31,
	2012			2011
Balance sheet data
Invested assets	$	12,153		$	11,801
Total assets		16,022			15,635
Short-term debt		104			104
Long-term debt		790			790
Shareholders' equity		5,207			5,033
Book value per share		32.07			31.03
Debt-to-total-capital ratio		14.7	%		15.1	%

	Three months ended March 31,
	2012			2011
Performance measure
Value creation ratio		4.6	%		2.9	%

· $12.577 billion in consolidated cash and invested assets at March 31, 2012, compared with $12.239 billion at year-end.

· $8.956 billion bond portfolio at March 31, 2012, with an average rating of A2/A. Fair value rose $177 million or 2 percent during the first quarter of 2012.

· $3.131 billion equity portfolio was 25.8 percent of invested assets, including $973 million in pre-tax net unrealized gains at March 31, 2012. $175 million or 6 percent first-quarter 2012 growth in fair value.

· $3.835 billion of statutory surplus for the property casualty insurance group at March 31, 2012, up $88 million from $3.747 billion at year-end 2011, after declaring $75 million in dividends to the parent company. Ratio of net written premiums to property casualty statutory surplus for the 12 months ended March 31, 2012, of 0.8-to-1, unchanged from year-end 2011.

· Value creation ratio of 4.6 percent for the first quarter of 2012 is the total of 1.3 percent from shareholder dividends plus 3.3 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 1Q12 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 2011 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 26.

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 resulting in capital market or credit market uncertainty, 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 or other insured entities

· 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 or performance inadequacies from ongoing development and implementation of underwriting and pricing methods or technology projects and enhancements expected to 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

· 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 Impose new obligations on us that increase our expenses or change the assumptions underlying our critical accounting estimates

o Place the insurance industry under greater regulatory scrutiny or result in new statutes, rules and regulations

o Restrict our ability to exit or reduce writings of unprofitable coverages or lines of business

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, including cyber attacks, 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 1Q12 Release 9

Cincinnati Financial Corporation
Condensed Consolidated Balance Sheets and Statements of Income (unaudited) 

(Dollars in millions)	March 31,			December 31,
	2012			2011
Assets
Investments	$	12,153		$	11,801
Cash and cash equivalents		424			438
Premiums receivable		1,126			1,087
Reinsurance receivable		602			622
Other assets		1,717			1,687
Total assets	$	16,022		$	15,635
Liabilities
Insurance reserves	$	6,587		$	6,553
Unearned premiums		1,680			1,633
Deferred income tax		388			303
Long-term debt and capital lease obligation		833			821
Other liabilities		1,327			1,292
Total liabilities		10,815			10,602
Shareholders' Equity
Common stock and paid-in capital		1,493			1,489
Retained earnings		3,884			3,863
Accumulated other comprehensive income		1,047			901
Treasury stock		(1,217	)		(1,220	)
Total shareholders' equity		5,207			5,033
Total liabilities and shareholders' equity	$	16,022		$	15,635

(Dollars in millions except per share data)	Three months ended March 31,
	2012		2011
Revenues
Earned premiums	$	839	$	782
Investment income, net of expenses		131		131
Realized investment gains and losses		13		12
Other revenues		3		4
Total revenues		986		929
Benefits and Expenses
Insurance losses and policyholder benefits		582		575
Underwriting, acquisition and insurance expenses		274		262
Interest expense		14		13
Other operating expenses		4		4
Total benefits and expenses		874		854
Income Before Income Taxes		112		75
Provision for Income Taxes		26		14
Net Income	$	86	$	61
Per Common Share:
Net income—basic	$	0.53	$	0.38
Net income—diluted	$	0.53	$	0.38

CINF 1Q12 Release 10

Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures

(See attached tables for 2012 reconciliations; prior-period reconciliations available at www.cinfin.com/investors.)

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

Management uses certain non-GAAP and non-statutory financial measures to evaluate its primary business areas – property casualty insurance, life insurance and investments. Management uses these measures when analyzing both GAAP and non-GAAP measures to improve its understanding of trends in the underlying business and to help avoid incorrect or misleading assumptions and conclusions about the success or failure of company strategies. Management adjustments to GAAP measures generally: apply to non-recurring events that are unrelated to business performance and distort short-term results; involve values that fluctuate based on events outside of management’s control; or relate to accounting refinements that affect comparability between periods, creating a need to analyze data on the same basis.

· Operating income: Operating income is calculated by excluding net realized investment gains and losses (defined as realized investment gains and losses after applicable federal and state income taxes) from net income. Management evaluates operating income to measure the success of pricing, rate and underwriting strategies. While realized investment gains (or losses) are integral to the company’s insurance operations over the long term, the determination to realize investment gains or losses in any period may be subject to management’s discretion and is independent of the insurance underwriting process. Also, under applicable GAAP accounting requirements, gains and losses can be recognized from certain changes in market values of securities without actual realization. Management believes that the level of realized investment gains or losses for any particular period, while it may be material, may not fully indicate the performance of ongoing underlying business operations in that period.

For these reasons, many investors and shareholders consider operating income to be one of the more meaningful measures for evaluating insurance company performance. Equity analysts who report on the insurance industry and the company generally focus on this metric in their analyses. The company presents operating income so that all investors have what management believes to be a useful supplement to GAAP information.

· Statutory accounting rules: For public reporting, insurance companies prepare financial statements in accordance with GAAP. However, insurers also must calculate certain data according to statutory accounting rules as defined in the NAIC’s Accounting Practices and Procedures Manual, which may be, and has been, modified by various state insurance departments. Statutory data is publicly available, and various organizations use it to calculate aggregate industry data, study industry trends and compare insurance companies.

· Written premium: Under statutory accounting rules, property casualty written premium is the amount recorded for policies issued and recognized on an annualized basis at the effective date of the policy. Management analyzes trends in written premium to assess business efforts. Earned premium, used in both statutory and GAAP accounting, is calculated ratably over the policy term. The difference between written and earned premium is unearned premium.

Cincinnati Financial Corporation

Balance Sheet Reconciliation

(Dollars are per share)	Three months ended March 31,
	2012			2011
Value creation ratio
End of period book value	$	32.07		$	31.27
Less beginning of period book value		31.03			30.79
Change in book value		1.04			0.48
Dividend declared to shareholders		0.40			0.40
Total contribution to value creation ratio	$	1.44		$	0.88
Contribution to value creation ratio from change in book value*		3.3	%		1.6	%
Contribution to value creation ratio from dividends declared to shareholders**		1.3			1.3
Value creation ratio		4.6	%		2.9	%

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

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

CINF 1Q12 Release 11

Cincinnati Financial Corporation

Net Income Reconciliation

(In millions except per share data)	Three months ended March 31,
	2012			2011
Net income	$	86		$	61
Net realized investment gains and losses		9			7
Operating income		77			54
Less catastrophe losses		(58	)		(27	)
Operating income before catastrophe losses	$	135		$	81
Diluted per share data:
Net income	$	0.53		$	0.38
Net realized investment gains and losses		0.05			0.05
Operating income		0.48			0.33
Less catastrophe losses		(0.35	)		(0.16	)
Operating income before catastrophe losses	$	0.83		$	0.49

Property Casualty Reconciliation

	Three months ended March 31, 2012
	Consolidated			Commercial			Personal			E&S
Premiums:
Written premiums	$	843		$	626		$	193		$	24
Unearned premiums change		(45	)		(58	)		16			(3	)
Earned premiums	$	798		$	568		$	209		$	21
Statutory ratio:
Statutory combined ratio		98.8	%		92.4	%		114.8	%		113.5	%
Contribution from catastrophe losses		11.1			6.8			23.5			3.7
Statutory combined ratio excluding catastrophe losses		87.7	%		85.6	%		91.3	%		109.8	%
Commission expense ratio		18.9	%		17.9	%		21.3	%		26.5	%
Other expense ratio		12.4			13.4			9.9			5.4
Statutory expense ratio		31.3	%		31.3	%		31.2	%		31.9	%
GAAP ratio:
GAAP combined ratio		99.1	%		94.2	%		110.9	%		113.6	%
Contribution from catastrophe losses		11.1			6.8			23.5			3.7
Prior accident years before catastrophe losses		(11.7	)		(13.6	)		(7.8	)		(0.4	)
GAAP combined ratio excluding catastrophe losses and prior
years reserve development		99.7	%		101.0	%		95.2	%		110.3	%

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

CINF 1Q12 Release 12

EX-99.2

Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending March 31, 2012

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 April 25, 2012, 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

  First Quarter 2012

		Page
	Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3
Consolidated
	Quick Reference	4
	CFC and Subsidiaries Consolidation – Three Months Ended March 31, 2012	5
	CFC Insurance Subsidiaries – Selected Balance Sheet Data	6
Consolidated Property Casualty Insurance Operations
	Statutory Statements of Income	7
	Consolidated Cincinnati Insurance Companies – Losses Incurred Detail	8
	Consolidated Cincinnati Insurance Companies – Loss Ratio Detail	9
	Consolidated Cincinnati Insurance Companies – Loss Claim Count Detail	10
	Direct Written Premiums by Line of Business and State	11
	Quarterly Property Casualty Data – Commercial Lines of Business	12
	Quarterly Property Casualty Data – Personal Lines of Business	13
	Loss and Loss Expense Analysis	14
Reconciliation Data
	Quarterly Property Casualty Data – Consolidated	15
	Quarterly Property Casualty Data – Commercial Lines	16
	Quarterly Property Casualty Data – Personal Lines	17
	Quarterly Property Casualty Data – Excess & Surplus Lines	18
Life Insurance Operations
	Statutory Statements of Income	19

Definitions of Non-GAAP Information and
Reconciliation to Comparable GAAP Measures

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

Management uses certain non-GAAP and non-statutory financial measures to evaluate its primary business areas – property casualty insurance, life insurance and investments. Management uses these measures when analyzing both GAAP and non-GAAP measures to improve its understanding of trends in the underlying business and to help avoid incorrect or misleading assumptions and conclusions about the success or failure of company strategies. Management adjustments to GAAP measures generally: apply to non-recurring events that are unrelated to business performance and distort short-term results; involve values that fluctuate based on events outside of management’s control; or relate to accounting refinements that affect comparability between periods, creating a need to analyze data on the same basis.

· Operating income: Operating income is calculated by excluding net realized investment gains and losses (defined as realized investment gains and losses after applicable federal and state income taxes) from net income. Management evaluates operating income to measure the success of pricing, rate and underwriting strategies. While realized investment gains (or losses) are integral to the company’s insurance operations over the long term, the determination to realize investment gains or losses in any period may be subject to management’s discretion and is independent of the insurance underwriting process. Also, under applicable GAAP accounting requirements, gains and losses can be recognized from certain changes in market values of securities without actual realization. Management believes that the level of realized investment gains or losses for any particular period, while it may be material, may not fully indicate the performance of ongoing underlying business operations in that period.

For these reasons, many investors and shareholders consider operating income to be one of the more meaningful measures for evaluating insurance company performance. Equity analysts who report on the insurance industry and the company generally focus on this metric in their analyses. The company presents operating income so that all investors have what management believes to be a useful supplement to GAAP information.

· Statutory accounting rules: For public reporting, insurance companies prepare financial statements in accordance with GAAP. However, insurers also must calculate certain data according to statutory accounting rules as defined in the NAIC’s Accounting Practices and Procedures Manual, which may be, and has been, modified by various state insurance departments. Statutory data is publicly available, and various organizations use it to calculate aggregate industry data, study industry trends and compare insurance companies.

· Written premium: Under statutory accounting rules, property casualty written premium is the amount recorded for policies issued and recognized on an annualized basis at the effective date of the policy. Management analyzes trends in written premium to assess business efforts. Earned premium, used in both statutory and GAAP accounting, is calculated ratably over the policy term. The difference between written and earned premium is unearned premium.

CINF First-Quarter 2012 Supplemental Financial Data 3

Cincinnati Financial Corporation

Quick Reference - First Quarter 2012

(all data shown is for the three months ended or as of March 31, 2012)

			Year over year change %					Year over year change %
		3/31/2012				3/31/2012
Revenues:				Benefits and expenses:
Commercial lines net written premiums	$	626	6	Commercial lines loss and loss expenses	$	348		(7)
Personal lines net written premiums		193	12	Personal lines loss and loss expenses		174		23
Excess & surplus lines net written premiums		24	33	Excess & surplus lines loss and loss expenses		17		13
Property casualty net written premiums		843	8	Life and accident and health losses and policy benefits		43		(4)
Life and accident and health net written premiums		49	12	Underwriting, acquisition and insurance expenses		274		5
Annuity net written premiums		16	(72)	Interest expenses		14		8
Life, annuity and accident and health net written premiums		65	(37)	Other operating expenses		4		0
Commercial lines net earned premiums		568	5	Total benefits & expenses		874		2
Personal lines net earned premiums		209	10	Income before income taxes		112		49
Excess & surplus lines net earned premiums		21	40	Total income tax		26		86
Property casualty net earned premiums		798	7
Fee revenue		1	0	Balance Sheet:
Life and accident and health net earned premiums		41	11
Investment income		131	0	Fixed maturity investments	$	8,956
Realized gains on investments		13	8	Equity securities		3,131
Other revenue		2	(33)	Other invested assets		66
Total revenues		986	6	Total invested assets	$	12,153
				Equity in net assets of subsidiaries	$	4,908
				Loss and loss expense reserves	$	4,347
				Life policy and investment contract reserves		2,240
Income:				Total debt and capital lease obligation		937
				Shareholders' equity		5,207
Operating income	$	77	43
Net realized investment gains and losses		9	29	Key ratios:
Net income		86	41
				Commercial lines GAAP combined ratio		94.2	%
				Personal lines GAAP combined ratio		110.9
				Excess & surplus lines GAAP combined ratio		113.6
				Property casualty GAAP combined ratio		99.1
Per share (diluted):
				Commercial lines STAT combined ratio		92.4	%
Operating income	$	0.48	45	Personal lines STAT combined ratio		114.8
Net realized investment gains and losses		0.05	0	Excess & surplus lines STAT combined ratio		113.5
Net income		0.53	39	Property casualty STAT combined ratio		98.8
Book value		32.07	3
Weighted average shares in thousands		163,145	0	Value creation ratio		4.6	%

CINF First-Quarter 2012 Supplemental Financial Data 4

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Three Months Ended March 31, 2012

(In millions)	CFC			CONSOL P&C			CLIC			CFC-I		ELIM			Total
Revenues:
Premiums earned:
Property casualty	$	-		$	842		$	-		$	-	$	-		$	842
Life		-			-			52			-		-			52
Accident health		-			-			2			-		-			2
Premiums ceded		-			(44	)		(13	)		-		-			(57	)
Total earned premium		-			798			41			-		-			839
Investment income		10			87			34			-		-			131
Realized gain on investments		-			12			1			-		-			13
Fee revenue		-			1			-			-		-			1
Other revenue		4			-			-			2		(4	)		2
Total revenues	$	14		$	898		$	76		$	2	$	(4	)	$	986
Benefits & expenses:
Losses & policy benefits	$	-		$	541		$	53		$	-	$	-		$	594
Reinsurance recoveries		-			(2	)		(10	)		-		-			(12	)
Underwriting, acquisition and insurance expenses		-			252			22			-		-			274
Other operating expenses		8			-			-			1		(5	)		4
Interest expense		13			-			-			1		-			14
Total expenses	$	21		$	791		$	65		$	2	$	(5	)	$	874
Income (loss) before income taxes	$	(7	)	$	107		$	11		$	-	$	1		$	112
Provision (benefit) for income taxes:
Current operating income	$	(7	)	$	24		$	(1	)	$	-	$	-		$	16
Capital gains/losses		-			4			-			-		-			4
Deferred		3			(2	)		5			-		-			6
Total provision (benefit) for income taxes	$	(4	)	$	26		$	4		$	-	$	-		$	26
Operating income (loss)	$	(3	)	$	73		$	6		$	-	$	1		$	77
Net income (loss) - current year	$	(3	)	$	81		$	7		$	-	$	1		$	86
Net income (loss) - prior year	$	-		$	73		$	(12	)	$	-	$	-		$	61

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

CINF First-Quarter 2012 Supplemental Financial Data 5

Cincinnati Financial Corporation Insurance Subsidiaries

Selected Balance Sheet Data

(In millions)
	12/31/12	9/30/12	06/30/12	3/31/12		12/31/11		9/30/11		6/30/11		3/31/11
Cincinnati Insurance Consolidated
Fixed maturities (fair value)				$	6,004	$	5,917	$	5,975	$	5,954	$	5,850
Equities (fair value)					2,264		2,131		1,865		2,113		2,203
Short-term investments (fair value)					-		-		-		-		-
Fixed maturities - pretax net unrealized gain					482		461		439		388		320
Equities - pretax net unrealized gain					731		594		361		631		670
Loss and loss expense reserves - STAT					3,938		3,906		4,013		3,971		3,853
Equity GAAP					4,864		4,740		4,507		4,686		4,706
Surplus - STAT					3,835		3,747		3,513		3,743		3,833
The Cincinnati Life Insurance Company
Fixed maturities (fair value)				$	2,736	$	2,629	$	2,652	$	2,528	$	2,449
Equities (fair value)					17		16		28		37		102
Short-term investments (fair value)					-		-		-		-		-
Fixed maturities - pretax net unrealized gain					223		195		197		174		149
Equities - pretax net unrealized gain (loss)					7		6		12		19		25
Equity - GAAP					792		770		766		779		752
Surplus - STAT					281		281		268		309		308

CINF First-Quarter 2012 Supplemental Financial Data 6

Consolidated Cincinnati Insurance Companies

Statutory Statements of Income

	For the Three Months Ended March 31,
(Dollars in millions)	2012			2011			Change			% Change
Underwriting income
Net premiums written	$	843		$	778		$	65			8
Unearned premiums increase		45			33			12			36
Earned premiums	$	798		$	745		$	53			7
Losses incurred	$	446		$	435		$	11			3
Allocated loss expenses incurred		45			45			-			nm
Unallocated loss expenses incurred		48			50			(2	)		(4	)
Other underwriting expenses incurred		261			236			25			11
Workers compensation dividend incurred		3			14			(11	)		(79	)
Total underwriting deductions	$	803		$	780		$	23			3
Net underwriting losses	$	(5	)	$	(35	)	$	30			86
Investment income
Gross investment income earned	$	89		$	91		$	(2	)		(2	)
Net investment income earned		88			90			(2	)		(2	)
Net realized capital gains		6			22			(16	)		(73	)
Net investment gains (excl. subs)	$	94		$	112		$	(18	)		(16	)
Dividend from subsidiary		-			-			-			-
Net investment gains (net of tax)	$	94		$	112		$	(18	)		(16	)
Other income	$	1		$	1		$	-			nm
Net income before federal income taxes	$	90		$	78		$	12			15
Federal and foreign income taxes incurred	$	24		$	13		$	11			85
Net income (statutory)	$	66		$	65		$	1			2

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

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

*Excludes CSU Producers Resources Inc.

CINF First-Quarter 2012 Supplemental Financial Data 7

Consolidated Cincinnati Insurance Companies

Losses Incurred Detail

(In millions)	Three months ended													Six months ended			Nine months ended			Twelve months ended
	12/31/12	9/30/12	6/30/12	3/31/12		12/31/11		9/30/11		6/30/11		3/31/11		6/30/12	6/30/11		9/30/12	9/30/11		12/31/12	12/31/11
Consolidated
New losses greater than $4,000,000				$	10	$	21	$	18	$	6	$	11		$	16		$	34		$	56
New losses $1,000,000-$4,000,000					31		47		44		33		49			83			127			173
New losses $250,000-$1,000,000					43		53		59		51		54			106			165			217
Case reserve development above $250,000					67		68		57		51		34			85			142			210
Large losses subtotal				$	151	$	189	$	178	$	141	$	148		$	290		$	468		$	656
IBNR incurred					19		(11)		-		18		32			51			51			39
Catastrophe losses incurred					89		(25)		90		289		41			330			419			395
Remaining incurred					187		194		234		218		213			430			664			859
Total losses incurred				$	446	$	347	$	502	$	666	$	434		$	1,101		$	1,602		$	1,949
Commercial Lines
New losses greater than $4,000,000				$	10	$	21	$	18	$	6	$	11		$	16		$	34		$	56
New losses $1,000,000-$4,000,000					24		38		40		30		40			70			110			148
New losses $250,000-$1,000,000					31		35		45		39		37			77			122			156
Case reserve development above $250,000					64		58		52		46		31			77			129			187
Large losses subtotal				$	129	$	152	$	155	$	121	$	119		$	240		$	395		$	547
IBNR incurred					-		(5)		1		11		24			35			36			31
Catastrophe losses incurred					39		(18)		58		157		26			183			241			223
Remaining incurred					105		101		130		124		131			255			385			486
Total losses incurred				$	273	$	230	$	344	$	413	$	300		$	713		$	1,057		$	1,287
Personal Lines
New losses greater than $4,000,000				$	-	$	-	$	-	$	-	$	-		$	-		$	-		$	-
New losses $1,000,000-$4,000,000					5		9		4		3		9			13			17			25
New losses $250,000-$1,000,000					8		13		11		10		14			23			35			48
Case reserve development above $250,000					2		8		4		4		3			7			11			19
Large losses subtotal				$	15	$	30	$	19	$	17	$	26		$	43		$	63		$	92
IBNR incurred					14		(4)		(3)		4		4			9			6			1
Catastrophe losses incurred					49		(6)		32		131		14			145			177			171
Remaining incurred					81		90		103		91		80			170			273			364
Total losses incurred				$	159	$	110	$	151	$	243	$	124		$	367		$	519		$	628
Excess & Surplus Lines
New losses greater than $4,000,000				$	-	$	-	$	-	$	-	$	-		$	-		$	-		$	-
New losses $1,000,000-$4,000,000					2		-		-		-		-			-			-			-
New losses $250,000-$1,000,000					4		5		3		2		3			6			8			13
Case reserve development above $250,000					1		2		1		1		-			1			2			4
Large losses subtotal				$	7	$	7	$	4	$	3	$	3		$	7		$	10		$	17
IBNR incurred					5		(2)		2		3		4			7			9			7
Catastrophe losses incurred					1		(1)		-		1		1			2			1			1
Remaining incurred					1		3		1		3		2			5			6			9
Total losses incurred				$	14	$	7	$	7	$	10	$	10		$	21		$	26		$	34

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

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

CINF First-Quarter 2012 Supplemental Financial Data 8

Cincinnati Insurance Companies

Loss Ratio Detail

	Three months ended													Six months ended			Nine months ended			Twelve months ended
	12/31/12	9/30/12	6/30/12	3/31/12		12/31/11		9/30/11		6/30/11		3/31/11		6/30/12	6/30/11		9/30/12	9/30/11		12/31/12	12/31/11
Consolidated
New losses greater than $4,000,000				1.3	%	2.8	%	2.3	%	0.8	%	1.4	%		1.1	%		1.5	%		1.9	%
New losses $1,000,000-$4,000,000				3.9		5.7		5.8		4.6		6.7			5.6			5.7			5.7
New losses $250,000-$1,000,000				5.5		6.6		7.7		7.0		7.3			7.2			7.4			7.2
Case reserve development above $250,000				8.3		8.7		7.5		6.9		4.6			5.8			6.3			6.9
Large losses subtotal				19.0	%	23.8	%	23.3	%	19.3	%	20.0	%		19.7	%		20.9	%		21.7	%
IBNR incurred				2.3		(1.2)		0.1		2.5		4.4			3.4			2.3			1.4
Total catastrophe losses incurred				11.1		(3.0)		11.7		39.6		5.5			22.3			18.7			13.1
Remaining incurred				23.5		24.5		30.3		29.8		28.5			29.2			29.6			28.2
Total loss ratio				55.9	%	44.1	%	65.4	%	91.2	%	58.4	%		74.6	%		71.5	%		64.4	%
Commercial Lines
New losses greater than $4,000,000				1.9	%	3.9	%	3.2	%	1.1	%	1.9	%		1.5	%		2.1	%		2.6	%
New losses $1,000,000-$4,000,000				4.2		6.5		7.3		5.5		7.5			6.5			6.8			6.7
New losses $250,000-$1,000,000				5.5		6.0		8.1		7.4		6.9			7.1			7.5			7.1
Case reserve development above $250,000				11.2		10.3		9.3		8.7		5.7			7.2			7.9			8.5
Large losses subtotal				22.8	%	26.7	%	27.9	%	22.7	%	22.0	%		22.3	%		24.3	%		24.9	%
IBNR incurred				0.0		(0.8)		0.2		2.0		4.4			3.3			2.2			1.4
Total catastrophe losses incurred				6.8		(3.2)		10.4		29.6		4.9			17.1			14.7			10.2
Remaining incurred				18.4		17.8		23.3		23.3		24.2			23.7			23.6			22.1
Total loss ratio				48.0	%	40.5	%	61.8	%	77.6	%	55.5	%		66.4	%		64.8	%		58.6	%
Personal Lines
New losses greater than $4,000,000				0.0	%	0.0	%	0.0	%	0.0	%	0.0	%		0.0	%		0.0	%		0.0	%
New losses $1,000,000-$4,000,000				2.3		3.9		2.2		2.0		4.8			3.5			3.0			3.3
New losses $250,000-$1,000,000				4.0		6.9		6.0		5.4		7.1			6.2			6.1			6.3
Case reserve development above $250,000				0.9		4.2		1.9		2.3		1.7			2.0			2.0			2.5
Large losses subtotal				7.2	%	15.0	%	10.1	%	9.7	%	13.6	%		11.7	%		11.1	%		12.1	%
IBNR incurred				6.6		(1.6)		(1.5)		2.4		2.3			2.3			1.0			0.3
Total catastrophe losses incurred				23.3		(3.0)		16.4		73.0		7.4			39.2			31.4			22.5
Remaining incurred				39.1		44.7		53.5		50.6		41.6			46.0			48.6			47.6
Total loss ratio				76.2	%	55.1	%	78.5	%	135.7	%	64.9	%		99.2	%		92.1	%		82.5	%
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	%
New losses $1,000,000-$4,000,000				11.1		0.0		0.0		0.0		0.0			0.0			0.0			0.0
New losses $250,000-$1,000,000				17.7		22.6		13.5		12.4		25.8			18.7			16.8			18.4
Case reserve development above $250,000				5.6		7.6		9.3		2.5		2.7			2.6			5.1			5.8
Large losses subtotal				34.4	%	30.2	%	22.8	%	14.9	%	28.5	%		21.3	%		21.9	%		24.2	%
IBNR incurred				22.2		(10.4)		12.5		17.1		26.1			21.3			18.1			10.1
Total catastrophe losses incurred				3.7		(0.4)		2.4		4.2		2.8			3.6			3.1			2.2
Remaining incurred				5.4		14.5		3.4		13.4		20.2			16.6			11.8			12.5
Total loss ratio				65.7	%	33.9	%	41.1	%	49.6	%	77.6	%		62.8	%		54.9	%		49.0	%

*Certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

CINF First-Quarter 2012 Supplemental Financial Data 9

Cincinnati Insurance Companies

Loss Claim Count Detail

	Three months ended								Six months ended		Nine months ended		Twelve months ended
	12/31/12	9/30/12	6/30/12	3/31/12	12/31/11	9/30/11	6/30/11	3/31/11	6/30/12	6/30/11	9/30/12	9/30/11	12/31/12	12/31/11
Consolidated
New losses greater than $4,000,000				2	4	3	1	2		3		6		10
New losses $1,000,000-$4,000,000				19	23	25	18	30		48		73		96
New losses $250,000-$1,000,000				101	115	129	122	122		244		373		488
Case reserve development above $250,000				86	108	84	81	68		149		233		341
Large losses total				208	250	241	222	222		444		685		935
Commercial Lines
New losses greater than $4,000,000				2	4	3	1	2		3		6		10
New losses $1,000,000-$4,000,000				15	18	21	15	24		39		60		78
New losses $250,000-$1,000,000				70	76	98	97	85		182		280		356
Case reserve development above $250,000				81	90	72	70	59		129		201		291
Large losses total				168	188	194	183	170		353		547		735
Personal Lines
New losses greater than $4,000,000				-	-	-	-	-		-		-		-
New losses $1,000,000-$4,000,000				2	5	4	3	6		9		13		18
New losses $250,000-$1,000,000				21	31	26	20	29		49		75		106
Case reserve development above $250,000				4	15	9	10	8		18		27		42
Large losses total				27	51	39	33	43		76		115		166
Excess & Surplus Lines
New losses greater than $4,000,000				-	-	-	-	-		-		-		-
New losses $1,000,000-$4,000,000				2	-	-	-	-		-		-		-
New losses $250,000-$1,000,000				10	8	5	5	8		13		18		26
Case reserve development above $250,000				1	3	3	1	1		2		5		8
Large losses total				13	11	8	6	9		15		23		34

The sum of quarterly amounts may not equal the full year as each is computed independently.

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

CINF First-Quarter 2012 Supplemental Financial Data 10

 Consolidated Cincinnati Insurance Companies 

 Agency Direct Written Premiums by Agency State by Line of Business for the Three Months Ended March 31, 2012

(Dollars in millions)					Commercial Lines											Personal Lines							Consolidated			Comm'l Change %	Personal Change %	E & S Change %	Consol Change %
Risk State	Comm Casualty		Comm Property		Comm Auto		Workers' Comp		Spec Packages		Surety & Exec Risk		Mach. & Equipment		Personal Auto		Home Owner		Other Personal		E & S Lines		2012		2011
																							Total		Total
OH	$	36.2	$	24.7	$	16.3	$	-	$	5.1	$	6.4	$	1.4	$	26.1	$	20.4	$	7.7	$	2.6	$	146.8	$	136.9	8.8	4.4	16.2	7.2
IL		15.0		11.2		7.9		13.6		3.0		1.7		0.8		6.8		5.3		1.9		1.8		69.0		68.0	(2.0)	11.4	45.3	1.3
IN		14.0		10.8		7.5		9.0		2.3		1.4		0.9		7.0		6.7		1.8		2.5		63.8		57.8	9.3	8.7	52.5	10.4
PA		13.3		9.1		9.7		14.5		2.4		1.6		0.6		2.1		1.5		0.9		0.9		56.7		53.4	5.5	13.6	11.8	6.2
GA		7.4		5.8		5.0		3.6		2.2		1.4		0.3		8.1		7.9		2.4		1.6		45.7		41.6	9.6	7.7	60.2	10.0
NC		8.4		7.7		5.2		5.3		4.2		1.9		0.5		4.8		3.5		1.5		0.7		43.5		38.9	6.3	34.9	30.3	11.9
MI		8.7		6.1		4.0		5.1		2.3		1.5		0.5		5.3		4.1		0.9		1.2		39.9		34.2	9.1	37.2	77.6	16.6
WI		7.8		5.5		3.4		9.3		1.1		0.8		0.5		1.8		1.8		0.8		0.6		33.3		29.4	14.0	3.5	89.5	13.3
KY		6.3		6.3		4.4		0.8		1.7		0.8		0.3		5.5		4.6		1.3		0.8		32.7		30.8	6.3	7.3	(11.6)	6.1
VA		7.3		6.2		4.3		4.9		1.3		1.7		0.3		2.3		1.9		0.7		1.1		32.1		32.1	(3.5)	11.1	68.9	nm
TN		6.8		5.9		4.0		2.6		2.9		1.0		0.4		2.9		3.2		1.1		0.5		31.3		28.8	5.6	16.5	99.9	8.7
AL		4.7		5.7		1.9		0.4		2.4		0.8		0.3		4.0		6.4		1.4		0.8		29.0		27.0	6.7	7.4	21.0	7.3
MN		6.1		4.6		2.6		2.1		0.9		0.6		0.4		2.3		2.2		0.6		0.8		23.1		20.9	5.0	27.2	49.9	10.4
MO		4.9		5.0		3.1		2.6		1.8		0.5		0.4		1.1		1.5		0.4		1.3		22.5		20.7	6.6	16.8	20.5	8.6
FL		5.6		5.4		1.8		0.5		0.5		0.5		0.2		2.1		2.9		0.6		0.8		20.7		22.1	(7.5)	(6.6)	29.4	(6.3)
IA		4.7		3.6		2.3		4.8		0.9		0.8		0.2		1.0		1.0		0.4		0.6		20.3		21.6	(9.3)	10.6	49.1	(6.3)
TX		5.9		4.0		4.1		0.7		0.1		0.3		0.3		-		-		-		1.6		17.1		11.6	50.6	nm	23.9	47.6
NY		7.3		2.6		2.6		0.6		0.4		0.5		0.2		-		-		-		0.3		14.5		13.5	6.1	346.8	40.9	6.9
MD		3.9		2.3		3.1		2.2		0.3		0.5		0.2		0.6		0.6		0.2		0.3		14.2		12.8	7.4	59.3	20.1	11.3
AR		2.4		3.8		1.7		0.8		1.5		0.4		0.2		1.2		1.2		0.4		0.6		14.1		11.7	15.7	36.1	47.8	20.3
KS		2.8		2.8		1.5		2.5		0.8		0.4		0.2		1.0		1.3		0.3		0.5		14.1		12.5	11.3	7.7	133.0	12.6
UT		2.9		1.6		2.0		-		0.3		0.6		0.1		1.5		0.7		0.2		0.3		10.2		7.6	29.8	52.4	8.5	33.6
AZ		2.9		1.8		1.8		0.7		0.2		0.3		0.1		0.6		0.5		0.2		0.4		9.7		8.8	5.4	41.1	33.6	10.2
SC		2.3		2.1		1.6		0.9		0.6		0.4		0.1		0.7		0.5		0.2		0.2		9.6		8.5	8.0	40.1	39.5	12.5
MT		3.2		1.4		1.8		-		0.2		0.2		0.1		0.4		0.4		0.1		0.1		8.0		7.9	nm	15.7	(29.4)	1.2
ID		2.7		1.8		1.7		0.1		0.3		0.2		0.1		0.5		0.3		0.1		0.1		8.0		6.4	23.5	33.4	9.2	24.3
NE		1.8		1.8		0.8		1.5		0.6		0.4		0.1		0.2		0.2		0.1		0.5		7.8		7.8	(0.8)	0.1	17.2	0.2
WV		2.0		1.3		1.4		0.4		0.6		0.2		0.1		-		0.1		0.1		0.4		6.7		5.6	19.6	6.5	12.4	18.7
VT		1.0		0.9		0.7		2.1		0.3		0.2		0.1		0.3		0.2		0.1		0.2		6.1		5.6	6.2	4.1	158.4	8.6
ND		2.0		1.2		1.1		-		0.3		0.2		0.1		0.1		0.1		-		0.1		5.3		4.6	16.0	9.5	57.0	15.9
CO		1.2		1.5		1.0		0.1		-		0.2		0.1		-		-		-		0.3		4.3		3.6	16.1	nm	45.1	17.6
SD		0.9		0.8		0.5		1.0		0.2		0.1		0.1		-		-		-		0.1		3.6		3.1	18.1	nm	38.0	18.5
NH		0.9		0.5		0.4		0.7		0.1		0.1		-		0.3		0.3		0.1		0.2		3.6		3.8	(11.4)	31.8	1.0	(5.3)
WA		1.0		0.6		0.9		-		-		0.2		0.1		-		-		-		0.1		2.9		2.5	16.5	nm	(11.3)	15.0
NM		1.0		0.5		0.6		0.2		-		0.3		-		-		-		-		0.1		2.6		2.3	17.4	nm	23.6	17.6
DE		0.5		0.4		0.5		0.5		0.1		0.2		-		-		-		-		-		2.2		1.9	14.8	nm	nm	15.2
OR		0.7		0.3		0.3		-		-		0.1		-		-		-		-		0.3		1.7		0.7	117.7	nm	nm	153.2
WY		0.3		0.2		0.1		-		-		0.1		-		-		-		-		-		0.7		0.5	53.9	nm	(11.5)	44.6
CT		0.2		0.1		0.1		-		-		-		-		-		-		0.1		0.1		0.6		0.4	53.5	nm	97.6	55.5
All Other		1.2		0.7		0.7		1.4		-		0.3		-		-		-		-		0.2		4.4		3.2	40.5	(1.9)	7.9	38.6
Total	$	208.5	$	158.7	$	114.2	$	94.8	$	41.9	$	30.1	$	10.4	$	90.4	$	81.5	$	26.3	$	25.5	$	882.3	$	811.3	7.1	11.4	36.6	8.8
Other Direct		-		0.2		-		1.0		-		-		-		-		-		-		-		1.2		1.3	(5.8)	(74.1)	nm	(10.8)
Total Direct	$	208.5	$	158.9	$	114.2	$	95.8	$	41.9	$	30.1	$	10.4	$	90.4	$	81.5	$	26.3	$	25.5	$	883.5	$	812.6	7.1	11.4	36.6	8.7

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

CINF First-Quarter 2012 Supplemental Financial Data 11

Quarterly Property Casualty Data - Commercial Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/12	9/30/12	6/30/12	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11			6/30/12	6/30/11			9/30/12	9/30/11			12/31/12	12/31/11
Commercial casualty:
Written premiums				$	202		$	169		$	175		$	177		$	189			$	366			$	541			$	710
Earned premiums					181			179			180			180			172				352				532				711
Current accident year before catastrophe losses					70.2	%		70.4	%		64.1	%		66.0	%		78.8	%			72.3	%			69.5	%			69.7	%
Current accident year catastrophe losses					-			-			-			-			-				-				-				-
Prior accident years before catastrophe losses					(26.7)			11.6			(26.7)			(27.2)			(32.3)				(29.7)				(28.7)				(18.5)
Prior accident years catastrophe losses					-			-			-			-			-				-				-				-
Total loss and loss expense ratio					43.5	%		82.0	%		37.4	%		38.8	%		46.5	%			42.6	%			40.8	%			51.2	%
Commercial property:
Written premiums				$	141		$	125		$	132		$	123		$	132			$	255			$	387			$	512
Earned premiums					131			128			128			115			126				241				369				497
Current accident year before catastrophe losses					57.2	%		31.1	%		77.6	%		76.8	%		64.8	%			70.5	%			73.0	%			62.1	%
Current accident year catastrophe losses					31.4			(5.3)			33.8			78.8			15.2				45.6				41.5				29.4
Prior accident years before catastrophe losses					(4.4)			(17.5)			(4.9)			(1.7)			8.0				3.4				0.5				(4.1)
Prior accident years catastrophe losses					(5.8)			(5.3)			3.7			1.1			3.4				2.3				2.8				0.7
Total loss and loss expense ratio					78.4	%		3.0	%		110.2	%		155.0	%		91.4	%			121.8	%			117.8	%			88.1	%
Commercial auto:
Written premiums				$	114		$	100		$	96		$	102		$	107			$	209			$	305			$	405
Earned premiums					101			102			100			96			96				192				292				394
Current accident year before catastrophe losses					73.9	%		81.3	%		67.8	%		72.6	%		76.5	%			74.5	%			72.2	%			74.5	%
Current accident year catastrophe losses					1.4			(1.5)			2.5			6.2			0.3				3.3				3.0				1.9
Prior accident years before catastrophe losses					(11.9)			3.1			3.5			(11.0)			(24.2)				(17.6)				(10.3)				(6.9)
Prior accident years catastrophe losses					(0.5)			-			(0.1)			(0.1)			(0.4)				(0.2)				(0.2)				(0.2)
Total loss and loss expense ratio					62.9	%		82.9	%		73.7	%		67.7	%		52.2	%			60.0	%			64.7	%			69.3	%
Workers' compensation:
Written premiums				$	93		$	78		$	71		$	73		$	90			$	163			$	234			$	312
Earned premiums					81			83			78			81			76				157				235				318
Current accident year before catastrophe losses					82.7	%		64.5	%		119.2	%		108.5	%		95.6	%			102.3	%			107.9	%			96.6	%
Current accident year catastrophe losses					-			-			-			-			-				-				-				-
Prior accident years before catastrophe losses					(19.0)			(58.2)			(28.4)			(28.9)			(4.1)				(16.9)				(20.7)				(30.5)
Prior accident years catastrophe losses					-			-			-			-			-				-				-				-
Total loss and loss expense ratio					63.7	%		6.3	%		90.8	%		79.6	%		91.5	%			85.4	%			87.2	%			66.1	%
Specialty package:
Written premiums				$	40		$	37		$	36		$	27		$	37			$	64			$	100			$	137
Earned premiums					38			38			36			27			37				64				100				138
Current accident year before catastrophe losses					66.4	%		42.8	%		91.6	%		93.8	%		62.7	%			75.7	%			81.5	%			70.9	%
Current accident year catastrophe losses					24.8			(3.0)			25.7			223.8			9.2				99.4				72.7				51.8
Prior accident years before catastrophe losses					(14.0)			(20.6)			19.6			1.8			15.1				9.5				13.2				3.9
Prior accident years catastrophe losses					(12.6)			0.8			(0.9)			(0.7)			(1.5)				(1.1)				(1.1)				(0.6)
Total loss and loss expense ratio					64.6	%		20.0	%		136.0	%		318.7	%		85.5	%			183.5	%			166.3	%			126.0	%
Surety and executive risk:
Written premiums				$	27		$	26		$	28		$	26		$	24			$	50			$	78			$	104
Earned premiums					27			27			26			25			25				50				76				103
Current accident year before catastrophe losses					49.2	%		96.4	%		54.7	%		47.9	%		54.7	%			51.3	%			52.4	%			63.7	%
Current accident year catastrophe losses					-			-			-			-			-				-				-				-
Prior accident years before catastrophe losses					34.8			38.8			32.5			19.4			41.4				30.2				31.0				33.0
Prior accident years catastrophe losses					-			-			-			-			-				-				-				-
Total loss and loss expense ratio					84.0	%		135.2	%		87.2	%		67.3	%		96.1	%			81.5	%			83.4	%			96.7	%
Machinery and equipment:
Written premiums				$	9		$	11		$	9		$	9		$	9			$	18			$	27			$	38
Earned premiums					9			10			9			9			8				17				26				36
Current accident year before catastrophe losses					36.0	%		10.0	%		38.7	%		32.0	%		28.2	%			30.1	%			33.1	%			26.9	%
Current accident year catastrophe losses					-			(2.3)			2.4			0.2			0.2				0.2				0.9				0.1
Prior accident years before catastrophe losses					3.2			(7.8)			(1.6)			6.9			8.5				7.7				4.5				1.2
Prior accident years catastrophe losses					-			-			-			-			-				-				-				-
Total loss and loss expense ratio					39.2	%		(0.1)	%		39.5	%		39.1	%		36.9	%			38.0	%			38.5	%			28.2	%

*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.

CINF First-Quarter 2012 Supplemental Financial Data 12

Quarterly Property Casualty Data - Personal Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/12	9/30/12	6/30/12	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11			6/30/12	6/30/11			9/30/12	9/30/11			12/31/12	12/31/11
Personal auto:
Written premiums				$	91		$	92		$	107		$	104		$	82			$	186			$	293			$	385
Earned premiums					98			95			94			90			89				179				273				368
Current accident year before catastrophe losses					73.5	%		103.4	%		66.6	%		67.3	%		68.2	%			67.7	%			67.4	%			76.7	%
Current accident year catastrophe losses					5.1			(0.9)			1.5			10.3			1.3				5.8				4.3				3.0
Prior accident years before catastrophe losses					(8.1)			4.8			1.7			(5.0)			(5.3)				(5.1)				(2.8)				(0.8)
Prior accident years catastrophe losses					(0.8)			-			(0.1)			(0.1)			(0.4)				(0.2)				(0.2)				(0.2)
Total loss and loss expense ratio					69.7	%		107.3	%		69.7	%		72.5	%		63.8	%			68.2	%			68.7	%			78.7	%
Homeowner:
Written premiums				$	77		$	79		$	87		$	78		$	68			$	146			$	233			$	312
Earned premiums					84			78			74			66			76				142				216				294
Current accident year before catastrophe losses					63.0	%		62.8	%		86.2	%		97.8	%		71.4	%			83.6	%			84.5	%			78.7	%
Current accident year catastrophe losses					60.4			(5.3)			40.3			175.4			22.1				92.7				74.7				53.6
Prior accident years before catastrophe losses					(2.9)			(13.3)			(6.1)			(0.5)			2.6				1.1				(1.4)				(4.5)
Prior accident years catastrophe losses					(9.8)			(0.2)			(1.8)			(0.1)			(5.8)				(3.1)				(2.7)				(2.0)
Total loss and loss expense ratio					110.7	%		44.0	%		118.6	%		272.6	%		90.3	%			174.3	%			155.1	%			125.8	%
Other personal:
Written premiums				$	25		$	25		$	28		$	28		$	23			$	51			$	79			$	104
Earned premiums					27			26			25			24			25				49				74				100
Current accident year before catastrophe losses					63.1	%		52.7	%		87.0	%		88.2	%		55.9	%			71.9	%			77.0	%			70.7	%
Current accident year catastrophe losses					11.7			(0.8)			10.4			34.5			3.8				19.0				16.1				11.7
Prior accident years before catastrophe losses					(22.1)			(18.8)			(36.4)			(18.4)			2.3				(7.9)				(17.6)				(17.9)
Prior accident years catastrophe losses					(3.1)			(0.1)			(0.6)			(0.5)			(0.8)				(0.6)				(0.6)				(0.5)
Total loss and loss expense ratio					49.6	%		33.0	%		60.4	%		103.8	%		61.2	%			82.4	%			74.9	%			64.0	%

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

CINF First-Quarter 2012 Supplemental Financial Data 13

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 March 31, 2012
Commercial casualty	$	60	$	36	$	96	$	5	$	(15)	$	(7)	$	(17)	$	65	$	(15)	$	29	$	79
Commercial property		83		7		90		3		18		-		21		86		18		7		111
Commercial auto		59		10		69		(5)		(1)		-		(6)		54		(1)		10		63
Workers' compensation		55		13		68		(9)		(7)		2		(14)		46		(7)		15		54
Specialty packages		23		4		27		(10)		4		-		(6)		13		3		4		21
Surety and executive risk		15		5		20		(3)		(3)		6		-		12		(3)		11		20
Machinery and equipment		2		-		2		-		2		-		2		2		2		-		4
Total commercial lines		297		75		372		(19)		(2)		1		(20)		278		(2)		76		352
Personal auto		58		9		67		(2)		1		1		-		56		1		10		67
Homeowners		69		5		74		4		16		(1)		19		73		16		4		93
Other personal		11		1		12		-		1		-		1		11		1		1		13
Total personal lines		138		15		153		2		18		-		20		140		18		15		173
Commercial casualty & property		3		1		4		5		5		2		12		8		5		3		16
Total excess & surplus lines		3		1		4		5		5		2		12		8		5		3		16
Total property casualty	$	438	$	91	$	529	$	(12)	$	21	$	3	$	12	$	426	$	21	$	94	$	541
Ceded loss and loss expense incurred at March 31, 2012
Commercial casualty	$	-	$	1	$	1	$	4	$	(5)	$	-	$	(1)	$	4	$	(5)	$	1	$	-
Commercial property		8		-		8		3		(2)		-		1		11		(2)		-		9
Commercial auto		-		-		-		-		(1)		-		(1)		-		(1)		-		(1)
Workers' compensation		3		-		3		-		(1)		-		(1)		3		(1)		-		2
Specialty packages		4		-		4		(6)		(1)		-		(7)		(2)		(1)		-		(3)
Surety and executive risk		-		-		-		(3)		-		-		(3)		(3)		-		-		(3)
Machinery and equipment		-		-		-		-		-		-		-		-		-		-		-
Total commercial lines		15		1		16		(2)		(10)		-		(12)		13		(10)		1		4
Personal auto		-		-		-		-		(1)		-		(1)		-		(1)		-		(1)
Homeowners		7		-		7		(2)		(5)		-		(7)		5		(5)		-		-
Other personal		1		-		1		-		(1)		-		(1)		1		(1)		-		-
Total personal lines		8		-		8		(2)		(7)		-		(9)		6		(7)		-		(1)
Commercial casualty & property		-		-		-		-		(1)		-		(1)		-		(1)		-		(1)
Total excess & surplus lines		-		-		-		-		(1)		-		(1)		-		(1)		-		(1)
Total property casualty	$	23	$	1	$	24	$	(4)	$	(18)	$	-	$	(22)	$	19	$	(18)	$	1	$	2
Net loss and loss expense incurred at March 31, 2012
Commercial casualty	$	60	$	35	$	95	$	1	$	(10)	$	(7)	$	(16)	$	61	$	(10)	$	28	$	79
Commercial property		75		7		82		-		20		-		20		75		20		7		102
Commercial auto		59		10		69		(5)		-		-		(5)		54		-		10		64
Workers' compensation		52		13		65		(9)		(6)		2		(13)		43		(6)		15		52
Specialty packages		19		4		23		(4)		5		-		1		15		5		4		24
Surety and executive risk		15		5		20		-		(3)		6		3		15		(3)		11		23
Machinery and equipment		2		-		2		-		2		-		2		2		2		-		4
Total commercial lines		282		74		356		(17)		8		(1)		(8)		265		8		75		348
Personal auto		58		9		67		(2)		2		1		1		56		2		10		68
Homeowners		62		5		67		6		21		(1)		26		68		21		4		93
Other personal		10		1		11		-		2		-		2		10		2		1		13
Total personal lines		130		15		145		4		25		-		29		134		25		15		174
Commercial casualty & property		3		1		4		5		6		2		13		8		6		3		17
Total excess & surplus lines		3		1		4		5		6		2		13		8		6		3		17
Total property casualty	$	415	$	90	$	505	$	(8)	$	39	$	3	$	34	$	407	$	39	$	93	$	539

CINF First-Quarter 2012 Supplemental Financial Data 14

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Consolidated

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/12	9/30/12	6/30/12	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11			6/30/12	6/30/11			9/30/12	9/30/11			12/31/12	12/31/11
Premiums
Agency renewal written premiums				$	762		$	712		$	730		$	717		$	708			$	1,425			$	2,155			$	2,867
Agency new business written premiums					108			103			115			117			102				219				334				437
Other written premiums					(27)			(55)			(54)			(66)			(31)				(97)				(151)				(206)
Reported written premiums – statutory*				$	843		$	760		$	791		$	768		$	779			$	1,547			$	2,338			$	3,098
Unearned premium change					(45)			25			(22)			(38)			(34)				(72)				(94)				(69)
Earned premiums				$	798		$	785		$	769		$	730		$	745			$	1,475			$	2,244			$	3,029
Year over year change %
Agency renewal written premiums					8	%		10	%		8	%		5	%		4	%			4	%			5	%			7	%
Agency new business written premiums					6			(4)			6			10			11				11				9				6
Other written premiums					13			(67)			(8)			(57)			(72)				(62)				(37)				(44)
Reported written premiums – statutory*					8			5			7			3			3				3				4				5
Paid losses and loss expenses
Losses paid				$	415		$	455		$	481		$	560		$	404			$	964			$	1,442			$	1,899
Loss expenses paid					90			90			85			82			85				166				251				342
Loss and loss expenses paid				$	505		$	545		$	566		$	642		$	489			$	1,130			$	1,693			$	2,241
Statutory combined ratio
Loss ratio					55.9	%		44.0	%		65.4	%		91.2	%		58.4	%			74.6	%			71.5	%			64.4	%
Allocated loss expense ratio					5.5			6.2			6.4			7.0			6.0				6.5				6.4				6.3
Unallocated loss expense ratio					6.1			5.4			7.3			5.9			6.7				6.3				6.7				6.3
Net underwriting expense ratio					31.3			32.9			31.1			31.3			32.2				31.8				31.5				31.9
Statutory combined ratio					98.8	%		88.5	%		110.2	%		135.4	%		103.3	%			119.2	%			116.1	%			108.9	%
Contribution from catastrophe losses					11.1			(2.8)			12.0			39.8			5.5				22.5				18.9				13.3
Statutory combined ratio      excluding catastrophe losses					87.7	%		91.3	%		98.2	%		95.6	%		97.8	%			96.7	%			97.2	%			95.6	%
Commission expense ratio					18.9	%		19.5	%		18.2	%		18.2	%		18.4	%			18.3	%			18.2	%			18.6	%
Other expense ratio					12.4			13.4			12.9			13.1			13.8				13.5				13.3				13.3
Statutory expense ratio					31.3	%		32.9	%		31.1	%		31.3	%		32.2	%			31.8	%			31.5	%			31.9	%
GAAP combined ratio
GAAP combined ratio					99.1	%		87.6	%		110.6	%		136.6	%		103.9	%			120.1	%			116.8	%			109.2	%
Contribution from catastrophe losses					11.1			(2.8)			12.0			39.8			5.5				22.5				18.9				13.3
GAAP combined ratio excluding catastrophe losses					88.0	%		90.4	%		98.6	%		96.8	%		98.4	%			97.6	%			97.9	%			95.9	%

*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.  

*nm - Not meaningful

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

CINF First-Quarter 2012 Supplemental Financial Data 15

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
	12/31/12	9/30/12	6/30/12	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11			6/30/12	6/30/11			9/30/12	9/30/11			12/31/12	12/31/11
Premiums
Agency renewal written premiums				$	571		$	514		$	507		$	500		$	542			$	1,042			$	1,549			$	2,063
Agency new business written premiums					75			74			81			81			71				152				233				307
Other written premiums					(20)			(42)			(41)			(44)			(25)				(69)				(110)				(152)
Reported written premiums – statutory*				$	626		$	546		$	547		$	537		$	588			$	1,125			$	1,672			$	2,218
Unearned premium change					(58)			21			10			(4)			(48)				(52)				(42)				(21)
Earned premiums				$	568		$	567		$	557		$	533		$	540			$	1,073			$	1,630			$	2,197
Year over year change %
Agency renewal written premiums					5	%		8	%		6	%		2	%		2	%			2	%			3	%			4	%
Agency new business written premiums					6			(3)			9			11			8				9				9				6
Other written premiums					20			(62)			2			(33)			(127)				(57)				(28)				(36)
Reported written premiums – statutory*					6			4			7			1			0				0				3				3
Paid losses and loss expenses
Losses paid				$	282		$	329		$	326		$	327		$	290			$	618			$	942			$	1,273
Loss expenses paid					74			75			65			63			69				131				197				271
Loss and loss expenses paid				$	356		$	404		$	391		$	390		$	359			$	749			$	1,139			$	1,544
Statutory combined ratio
Loss ratio					48.0	%		40.6	%		61.8	%		77.5	%		55.5	%			66.4	%			64.8	%			58.5	%
Allocated loss expense ratio					6.8			7.7			7.7			8.9			7.0				8.0				7.9				7.9
Unallocated loss expense ratio					6.3			1.8			7.3			4.4			6.7				5.5				6.1				5.0
Net underwriting expense ratio					31.3			33.6			32.6			32.2			32.9				32.6				32.6				32.8
Statutory combined ratio					92.4	%		83.7	%		109.4	%		123.0	%		102.1	%			112.5	%			111.4	%			104.2	%
Contribution from catastrophe losses					6.8			(2.9)			10.7			29.7			4.9				17.2				14.9				10.4
Statutory combined ratio      excluding catastrophe losses					85.6	%		86.6	%		98.7	%		93.3	%		97.2	%			95.3	%			96.5	%			93.8	%
Commission expense ratio					17.9	%		18.9	%		18.1	%		17.7	%		18.5	%			18.1	%			18.1	%			18.3	%
Other expense ratio					13.4			14.7			14.5			14.5			14.4				14.5				14.5				14.5
Statutory expense ratio					31.3	%		33.6	%		32.6	%		32.2	%		32.9	%			32.6	%			32.6	%			32.8	%
GAAP combined ratio
GAAP combined ratio					94.2	%		83.9	%		107.9	%		124.2	%		104.0	%			114.0	%			111.9	%			104.7	%
Contribution from catastrophe losses					6.8			(2.9)			10.7			29.7			4.9				17.2				14.9				10.4
GAAP combined ratio excluding catastrophe losses					87.4	%		86.8	%		97.2	%		94.5	%		99.1	%			96.8	%			97.0	%			94.3	%

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

*nm - Not meaningful 

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

CINF First-Quarter 2012 Supplemental Financial Data 16

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
	12/31/12	9/30/12	6/30/12	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11			6/30/12	6/30/11			9/30/12	9/30/11			12/31/12	12/31/11
Premiums
Agency renewal written premiums				$	175		$	185		$	209		$	205		$	156			$	361			$	570			$	755
Agency new business written premiums					24			22			25			26			22				48				73				95
Other written premiums					(6)			(11)			(12)			(21)			(5)				(26)				(38)				(49)
Reported written premiums – statutory*				$	193		$	196		$	222		$	210		$	173			$	383			$	605			$	801
Unearned premium change					16			3			(29)			(30)			17				(13)				(42)				(39)
Earned premiums				$	209		$	199		$	193		$	180		$	190			$	370			$	563			$	762
Year over year change %
Agency renewal written premiums					12	%		11	%		11	%		10	%		9	%			9	%			10	%			10	%
Agency new business written premiums					9			(4)			0			8			22				14				9				6
Other written premiums					(20)			(83)			(100)			(200)			17				(100)				(100)				(96)
Reported written premiums – statutory*					12			7			7			3			12				7				7				7
Paid losses and loss expenses
Losses paid				$	130		$	122		$	151		$	229		$	109			$	338			$	488			$	611
Loss expenses paid					15			14			18			18			15				33				51				66
Loss and loss expenses paid				$	145		$	136		$	169		$	247		$	124			$	371			$	539			$	677
Statutory combined ratio
Loss ratio					76.2	%		55.1	%		78.4	%		135.7	%		64.9	%			99.3	%			92.2	%			82.5	%
Allocated loss expense ratio					1.8			1.8			1.9			3.0			2.3				2.6				2.4				2.2
Unallocated loss expense ratio					5.6			16.0			7.0			10.7			6.9				8.8				8.2				10.2
Net underwriting expense ratio					31.2			31.0			27.4			29.0			30.3				29.5				28.7				29.3
Statutory combined ratio					114.8	%		103.9			114.7	%		178.4	%		104.4	%			140.2	%			131.5	%			124.2	%
Contribution from catastrophe losses					23.5			(2.7)			16.8			73.4			7.4				39.4				31.7				22.7
Statutory combined ratio      excluding catastrophe losses					91.3	%		106.6	%		97.9	%		105.0	%		97.0	%			100.8	%			99.8	%			101.5	%
Commission expense ratio					21.3	%		20.4	%		17.6	%		18.7	%		17.9	%			18.3	%			18.1	%			18.6	%
Other expense ratio					9.9			10.6			9.8			10.3			12.4				11.2				10.7				10.7
Statutory expense ratio					31.2	%		31.0	%		27.4	%		29.0	%		30.3	%			29.5	%			28.8	%			29.3	%
GAAP combined ratio
GAAP combined ratio					110.9	%		99.5	%		119.7	%		179.2	%		101.4	%			139.2	%			132.6	%			123.9	%
Contribution from catastrophe losses					23.5			(2.7)			16.8			73.4			7.4				39.4				31.7				22.7
GAAP combined ratio excluding catastrophe losses					87.4	%		102.2	%		102.9	%		105.8	%		94.0	%			99.8	%			100.9	%			101.2	%

*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.

CINF First-Quarter 2012 Supplemental Financial Data 17

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
	12/31/12	9/30/12	6/30/12	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11			6/30/12	6/30/11			9/30/12	9/30/11			12/31/12	12/31/11
Premiums
Agency renewal written premiums				$	16		$	13		$	14		$	12		$	10			$	22			$	36			$	49
Agency new business written premiums					9			7			9			10			9				19				28				35
Other written premiums					(1)			(2)			(1)			(1)			(1)				(2)				(3)				(5)
Reported written premiums – statutory*				$	24		$	18		$	22		$	21		$	18			$	39			$	61			$	79
Unearned premium change					(3)			1			(3)			(4)			(3)				(7)				(10)				(9)
Earned premiums				$	21		$	19		$	19		$	17		$	15			$	32			$	51			$	70
Year over year change %
Agency renewal written premiums					60	%		63	%		56	%		100	%		67	%			83	%			71	%			69	%
Agency new business written premiums					0			(13)			(10)			11			13				12				4				0
Other written premiums					0			(100)			50			50			0				33				40				17
Reported written premiums – statutory*					33			20			29			62			38				50				42				36
Paid losses and loss expenses
Losses paid				$	3		$	3		$	3		$	4		$	4			$	8			$	12			$	15
Loss expenses paid					1			2			2			1			1				2				3				5
Loss and loss expenses paid				$	4		$	5		$	5		$	5		$	5			$	10			$	15			$	20
Statutory combined ratio
Loss ratio					65.7	%		33.9	%		41.1	%		49.6	%		77.6	%			62.8	%			54.8	%			48.9	%
Allocated loss expense ratio					10.6			5.6			11.2			(12.8)			19.1				2.2				5.5				5.5
Unallocated loss expense ratio					5.3			2.9			9.9			4.7			6.1				5.3				7.0				5.9
Net underwriting expense ratio					31.9			31.8			30.7			31.6			27.6				29.8				30.1				30.5
Statutory combined ratio					113.5	%		74.2	%		92.9	%		73.1	%		130.4	%			100.1	%			97.4	%			90.8	%
Contribution from catastrophe losses					3.7			(0.3)			2.5			4.4			2.8				3.6				3.2				2.2
Statutory combined ratio      excluding catastrophe losses					109.8	%		74.5	%		90.4	%		68.7	%		127.6	%			96.5	%			94.2	%			88.6	%
Commission expense ratio					26.5	%		26.0	%		25.1	%		24.5	%		22.2	%			23.5	%			24.1	%			24.5	%
Other expense ratio					5.4			5.8			5.6			7.1			5.4				6.3				6.0				6.0
Statutory expense ratio					31.9	%		31.8	%		30.7	%		31.6	%		27.6	%			29.8	%			30.1	%			30.5	%
GAAP combined ratio
GAAP combined ratio					113.6	%		74.8	%		93.6	%		74.7	%		133.0	%			102.1	%			99.0	%			92.2	%
Contribution from catastrophe losses					3.7			(0.3)			2.5			4.4			2.8				3.6				3.2				2.2
GAAP combined ratio excluding catastrophe losses					109.9	%		75.1	%		91.1	%		70.3	%		130.2	%			98.5	%			95.8	%			90.0	%

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

*nm - Not meaningful

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

CINF First-Quarter 2012 Supplemental Financial Data 18

The Cincinnati Life Insurance Company

Statutory Statements of Income

	For the Three Months Ended March 31,
(Dollars in millions)	2012			2011			Change			% Change
Net premiums written	$	64		$	102		$	(38	)		(37	)
Net investment income		34			34			-			nm
Commissions and expense allowances on reinsurance ceded		2			2			-			nm
Income from fees associated with Separate Accounts		-			1			(1	)		-
Total revenues	$	100		$	139		$	(39	)		(28	)
Death benefits and matured endowments	$	17		$	16		$	1			6
Annuity benefits		13			13			-			nm
Surrender benefits and group conversions		6			6			-			nm
Interest and adjustments on deposit-type contract funds		3			3			-			nm
Increase in aggregate reserves for life and accident and health contracts		43			77			(34	)		(44	)
Total benefit expenses	$	82		$	115		$	(33	)		(29	)
Commissions	$	10		$	12		$	(2	)		(17	)
General insurance expenses and taxes		11			10			1			10
Total operating expenses	$	21		$	22		$	(1	)		(5	)
Federal and foreign income tax benefit		(1	)		8			(9	)		nm
Net loss from operations before realized capital gains	$	(2	)	$	(7	)	$	4			71
Net realized losses net of capital gains tax		-			(20	)		20			nm
Net loss (statutory)	$	(2	)	$	(26	)	$	24			92

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

* Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

CINF First-Quarter 2012 Supplemental Financial Data 19