Schedule II



Cincinnati Financial Corporation (parent company only)
Condensed Balance Sheets
(In millions)		At December 31,
		2012		2011
ASSETS
Investments
Fixed maturities, at fair value	$	103	$	225
Equity securities, at fair value		958		806
Investment real estate, net
Other invested assets		31		29
Cash and cash equivalents		90		20
Equity in net assets of subsidiaries		5,103		4,776
Investment income receivable		3		4
Land, building and equipment, net, for company use (accumulated depreciation: 2012—$0; 2011—$94)		153		158
Prepaid income tax		14		-
Other assets		35		13
Due from subsidiaries		75		65
Total assets	$	6,565	$	6,096

LIABILITIES
Dividends declared but unpaid	$	66	$	65
Deferred federal income tax		63		40
Long-term debt		790		790
Other liabilities		193		168
Total liabilities		1,112		1,063

SHAREHOLDERS' EQUITY
Common stock		394		393
Paid-in capital		1,134		1,096
Retained earnings		4,021		3,863
Accumulated other comprehensive income		1,129		901
Treasury stock at cost		(1,225)		(1,220)
Total shareholders' equity		5,453		5,033
Total liabilities and shareholders' equity	$	6,565	$	6,096

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8, Page 105.

Schedule II (continued)



Cincinnati Financial Corporation (parent company only)
Condensed Statements of Comprehensive Income
(In millions)		Years ended December 31,
		2012		2011		2010
REVENUES
Investment income, net of expenses	$	42	$	41	$	41
Realized gains on investments		34		15		17
Other revenue		15		14		14
Total revenues		91		70		72

EXPENSES
Interest expense		53		53		52
Other expenses		27		25		24
Total expenses		80		78		76

INCOME BEFORE INCOME TAXES AND EARNINGS OF SUBSIDIARIES		11		(8)		(4)

PROVISION (BENEFIT) FOR INCOME TAXES		(4)		(9)		(7)

NET INCOME BEFORE EARNINGS OF SUBSIDIARIES		15		1		3

Increase in equity of subsidiaries		406		163		372

NET INCOME	$	421	$	164	$	375
OTHER COMPREHENSIVE INCOME, BEFORE TAX
Unrealized gains on investments available-for-sale		67		59		45
Unrealized gains on investments held by subsidiaries		361		250		338
Reclassification adjustment for (gains) losses included in net income		(34)		(15)		17
Reclassification adjustment for (gains) included in net income on subsidiaries		(8)		(55)		(176)
Unrealized gains on other		5		1		4
Unrealized losses on other subsidiaries		(26)		(12)		(8)
Unrealized gains on investments available-for-sale, investments held by subsidiaries and other		365		228		220
Amortization of pension actuarial (loss) gain and prior service cost		(13)		(25)		3
Other comprehensive income before tax		352		203		223
Income taxes on above of other comprehensive income		124		71		78
Other comprehensive income, net of tax		228		132		145
COMPREHENSIVE INCOME	$	649	$	296	$	520

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8, Page 105.

Schedule II (continued)



Cincinnati Financial Corporation (parent company only)
Condensed Statements of Cash Flows
(In millions)		Years ended December 31,
		2012		2011		2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	421	$	164	$	375
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		7		7		7
Realized gains on investments, net		(34)		(15)		(17)
Dividends from subsidiaries		300		180		220
Changes in:
Increase in equity of subsidiaries		(406)		(163)		(372)
Investment income receivable		1		1		-
Current federal income taxes		(24)		25		3
Deferred income taxes		18		(10)		2
Other assets		(2)		2		-
Other liabilities		7		(23)		(12)
Net cash (used in) provided by operating activities		288		168		206

CASH FLOWS FROM INVESTING ACTIVITIES
Sale of fixed-maturities		114		5		32
Call or maturity of fixed maturities		13		13		21
Sale of equity securities		111		101		85
Purchase of fixed maturities		(1)		-		(27)
Purchase of equity securities		(212)		(78)		(92)
Change in short-term investments, net
Investment in buildings and equipment, net		(1)		(1)		-
Change in other invested assets, net		4		5		-
Net cash provided by investing activities		28		45		19

CASH FLOWS FROM FINANCING ACTIVITIES
Increase in notes payable		-		55		-
Payment of cash dividends to shareholders		(256)		(255)		(252)
Purchase of treasury shares		-		(32)		(10)
Proceeds from stock options exercised		9		(4)		(2)
Net transfers to subsidiaries		(2)		2		21
Other		3		3		2
Net cash used in financing activities		(246)		(231)		(241)
Net decrease in cash and cash equivalents		70		(18)		(16)
Cash and cash equivalents at beginning of year		20		38		54
Cash and cash equivalents at end of year	$	90	$	20	$	38

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8, Page 103.