Cincinnati Financial 8K Results of Operations and Financial Condition | CINF 3 May 06

Cincinnati Financial Corporation

Supplemental Financial Data

March 31, 2006

First Quarter

6200 South Gilmore Road

Fairfield, Ohio 45014-5141

www.cinfin.com/investors


Investor Contact:		Media Contact:		Shareholder Contact:
Heather J. Wietzel		Joan O. Shevchik		Jerry L. Litton
(513) 870-2768		(513) 603-5323		(513) 870-2639


Cincinnati Financial Corporation
		A.M. Best	Fitch	Moody’s	Standard & Poor’s

Corporate Debt		aa-	A+	A2	A

The Cincinnati Insurance Companies

		A.M. Best	Fitch	Moody’s	Standard & Poor’s

Property Casualty Group		A++	--	Aa3	AA-
The Cincinnati Insurance Company		A++	AA	Aa3	AA-
The Cincinnati Indemnity Company		A++	AA	Aa3	AA-
The Cincinnati Casualty Company		A++	AA	Aa3	AA-

The Cincinnati Life Insurance Company		A+	AA	--	AA-


	Ratings are as of May 3, 2006, under continuing review and subject to change and/or affirmation. For the latest ratings, select the Ratings tab onwww.cinfin.com/investors.

	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 in the Annual Report on Form 10-K for 2005. The results of operations for interim periods should not be considered indicative of results to be expected for the full year.


	Cincinnati Financial Corporation
	Supplemental Financial Data
	First Quarter 2006

		Page	Status
	Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3	5/3/2006

Consolidated
	Quick Reference	4	5/3/2006
	Consolidated Statements of Income	5	5/3/2006
	CFC and Subsidiary Consolidation – Three Months Ended March 31, 2006	6	5/3/2006
	CFC and Subsidiary Consolidation – Three Months Ended March 31, 2005	7	5/3/2006
	Consolidated Balance Sheets	8	5/3/2006
	10-Year Net Income Reconciliation	9	5/3/2006
	Quarterly Net Income Reconciliation	10	5/3/2006
	Top Holdings -- Common Stocks	11	5/3/2006

Property Casualty Insurance Operations
	GAAP Statements of Income	12	5/3/2006
	Statutory Statements of Income	13	5/3/2006
	Statutory Quarterly Analysis – Consolidated	14	5/3/2006
	Statutory Quarterly Analysis – Commercial Lines	15	5/3/2006
	Statutory Quarterly Analysis – Personal Lines	16	5/3/2006
	Direct Written Premiums by Line of Business and State	17	5/3/2006
	Quarterly Property Casualty Data – Commercial Lines of Business	18	5/3/2006
	Quarterly Property Casualty Data – Personal Lines of Business	19	5/3/2006

Reconciliation Data
	10-Year Property Casualty Data – Consolidated	20	5/3/2006
	6-Year Property Casualty Data – Commercial Lines	21	5/3/2006
	6-Year Property Casualty Data – Personal Lines	22	5/3/2006
	Quarterly Property Casualty Data – Consolidated	23	5/3/2006
	Quarterly Property Casualty Data – Commercial Lines	24	5/3/2006
	Quarterly Property Casualty Data – Personal Lines	25	5/3/2006

Life Insurance Operations
	GAAP Statements of Income	26	5/3/2006
	Statutory Statements of Income	27	5/3/2006
	Expenses as a Percentage of Premium	28	5/3/2006

2006 First-Quarter Supplement

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

(See attached tables for 2006 and 2005 data; prior-period reconciliations available atwww.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 – when analyzing both GAAP and certain non-GAAP measures may improve understanding of trends in the underlying business, helping 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 and embedded derivatives 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.

Written premium adjustment – statutory basis only: In 2002, the company refined its estimation process for matching property casualty written premiums to policy effective dates, which added $117 million to 2002 written premiums. To better assess ongoing business trends, management may exclude this adjustment when analyzing trends in written premiums and statutory ratios that make use of written premiums.

Codification: Adoption of Codification of Statutory Accounting Principles was required for Ohio-based insurance companies effective January 1, 2001. The adoption of Codification changed the manner in which the company recognized statutory property casualty written premiums. As a result, 2001 statutory written premiums included $402 million to account for unbooked premiums related to policies with effective dates prior to January 1, 2001. To better assess ongoing business trends, management excludes this $402 million when analyzing written premiums and statutory ratios that make use of written premiums.

Life insurance gross written premiums: In analyzing the life insurance company’s gross written premiums, management excludes five larger, single-pay life insurance policies (bank-owned life insurance or BOLIs) written in 2004, 2002, 2000 and 1999 to focus on the trend in premiums written through the independent agency distribution channel.

One-time charges or adjustments: Management analyzes earnings and profitability excluding the impact of one-time items.

○

In 2003, as the result of a settlement negotiated with a vendor, pretax results included the recovery of $23 million of the $39 million one-time, pretax charge incurred in 2000.

○

In 2000, the company recorded a one-time charge of $39 million, pre-tax, to write down previously capitalized costs related to the development of software to process property casualty policies.

In 2000, the company earned $5 million in interest in the first quarter from a $303 million single-premium BOLI policy that was booked at the end of 1999 and segregated as a separate account effective April 1, 2000. Investment income and realized investment gains and losses from separate accounts generally accrue directly to the contract holder and, therefore, are not included in the company’s consolidated financials.

2006 First-Quarter Supplement


Cincinnati Financial Corporation
Quick Reference - First Quarter 2006
(all data shown is for the three months ended or as of March 31, 2006)
(Based on reported data - see Pages 23-25 for adjusted data)

(Dollars in millions except share data)
Revenues:				Benefits and expenses:

Commercial lines net written premiums	$	668		Commercial lines losses	$	354
Year-over-year percentage change		6.2	%	Year-over-year percentage change		5.7	%
Personal lines net written premiums	$	161		Personal lines losses	$	118
Year-over-year percentage change		(4.1)	%	Year-over-year percentage change		(4.3)	%
Property casualty net written premiums	$	829		Property casualty losses	$	472
Year-over-year percentage change		4.0	%	Year-over-year percentage change		3.0	%
Commercial lines net earned premiums	$	582		Life and accident and health losses and policy benefits	$	30
Year-over-year percentage change		5.7	%	Year-over-year percentage change		26.4	%
Personal lines net earned premiums	$	196		Operating expenses	$	259
Year-over-year percentage change		(3.2)	%	Year-over-year percentage change		14.2	%
Property casualty net earned premiums	$	778		Interest expenses	$	13
Year-over-year percentage change		3.3	%	Year-over-year percentage change		(0.1)	%
Life and accident and health net earned premiums	$	26		Total expenses	$	773
Year-over-year percentage change		10.6	%	Year-over-year percentage change		7.3	%
Investment income	$	139		Income before income taxes	$	834
Year-over-year percentage change		9.0	%	Year-over-year percentage change		326.7	%
Realized gains on investments	$	660		Total income tax	$	282
Year-over-year percentage change		7,415.4	%	Year-over-year percentage change		452.1	%
Other income	$	4		Effective tax rate		33.8	%
Year-over-year percentage change		14.7	%
Total revenues	$	1,607		Ratios:
Year-over-year percentage change		75.4	%
				Commercial lines GAAP combined ratio		90.5	%
Income:				Personal lines GAAP combined ratio		96.4	%
				Property casualty GAAP combined ratio		92.0	%
Operating income	$	131
Year-over-year percentage change		(5.1)	%	Commercial lines STAT combined ratio		87.5	%
Net realized investment gains and losses	$	421		Personal lines STAT combined ratio		98.1	%
Year-over-year percentage change		7,090.5	%	Property casualty STAT combined ratio		89.6	%
Net income	$	552
Year-over-year percentage change		282.4	%	Return on equity based upon net income (annualized)		35.9	%
				Return on equity based upon operating income (annualized)		8.0	%
Per share: (diluted)
				Balance Sheet:
Operating income	$	0.74
Year-over-year percentage change		(5.1)	%	Fixed maturity investments	$	5,640
Net realized investment gains and losses	$	2.39		Equity securities		6,997
Year-over-year percentage change		7,866.7	%	Short-term investments		288
Net income	$	3.13		Securities lending collateral		330
Year-over-year percentage change		286.4	%	Other invested assets		52
Book value	$	35.85		Total invested assets	$	13,255
Year-over-year percentage change		2.8	%	Property casualty and life loss and loss expense reserves	$	3,728
Weighted average shares -- diluted	176,127,404			Total debt		791
Year-over-year percentage change		(0.6)	%	Shareholders equity		6,204

2006 First-Quarter Supplement


Cincinnati Financial Corporation
Consolidated Statements of Income
		For the Three Months Ended March 31,
		2006		2005		Change	% Change
Revenues:
Premiums earned:
Property casualty	$	816,042,728	$	794,495,941	$	21,546,787	2.71
Life		34,874,544		31,516,806		3,357,738	10.65
Accident health		1,733,897		1,653,157		80,740	4.88
Premiums ceded		(48,610,706)		(50,950,369)		2,339,663	4.59
Total premiums earned		804,040,463		776,715,535		27,324,928	3.52
Investment income		138,533,053		127,039,271		11,493,782	9.05
Realized gain on investments		660,230,900		8,784,983		651,445,917	7,415.45
Other income		4,297,510		3,748,394		549,116	14.65
Total revenues	$	1,607,101,926	$	916,288,183	$	690,813,743	75.39

Benefits & expenses:
Losses & policy benefits	$	524,355,214	$	537,857,247	$	(13,502,033)	(2.51)
Reinsurance recoveries		(23,068,989)		(56,675,418)		33,606,429	59.30
Commissions		165,724,962		150,439,659		15,285,303	10.16
Other operating expenses		80,153,365		66,944,250		13,209,115	19.73
Interest expense		12,840,294		12,958,130		(117,836)	(0.91)
Taxes, licenses & fees		24,265,452		16,855,687		7,409,765	43.96
Incr deferred acq expense		(14,459,113)		(11,368,992)		(3,090,121)	(27.18)
Other expenses		3,332,207		3,847,606		(515,399)	(13.40)
Total expenses	$	773,143,392	$	720,858,169	$	52,285,223	7.25
Income before income taxes	$	833,958,534	$	195,430,014	$	638,528,520	326.73

Provision for income taxes:
Current operating income	$	52,521,171	$	47,576,416	$	4,944,755	10.39
Realized investments gains and losses		239,649,184		2,936,089		236,713,095	8,062.19
Deferred		(10,198,514)		561,105		(10,759,619)	(1,917.58)
Total income taxes	$	281,971,841	$	51,073,610	$	230,898,231	452.09

Net income	$	551,986,693	$	144,356,404	$	407,630,289	282.38
Comprehensive net income	$	240,437,206	$	(189,078,918)	$	429,516,124	(227.16)

Operating income	$	131,404,977	$	138,507,510	$	(7,102,533)	(5.13)
Net realized investments gains and losses	$	420,581,716	$	5,849,167	$	414,732,549	7,090.45

Net income per share:
Operating income	$	0.75	$	0.79	$	(0.04)	(5.06)
Net realized investments gains and losses		2.42		0.03		2.39	7,966.67
Net income per share (basic)	$	3.17	$	0.82	$	2.35	286.59
Operating income	$	0.74	$	0.78	$	(0.04)	(5.13)
Net realized investments gains and losses		2.39		0.03		2.36	7,866.67
Net income per share (diluted)	$	3.13	$	0.81	$	2.32	286.42
Dividends per share:
Paid	$	0.3050	$	0.2620	$	0.0430	16.41
Declared	$	0.3350	$	0.2900	$	0.0450	15.52
Number of shares:
Weighted avg - basic		174,178,090		175,554,038		(1,375,948)	(0.78)
Weighted avg - diluted		176,127,404		177,857,161		(1,729,757)	(0.97)

2006 First-Quarter Supplement


Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Three Months Ended March 31, 2006

		Total		CFC		CIC GROUP		CLIC		CFC-I		CINFIN		ELIM
Revenues:
Premiums earned:
Property casualty	$	816,042,728	$	0	$	816,236,753	$	0	$	0	$	0	$	(194,025)
Life		34,874,544		0		0		34,874,544		0		0		0
Accident health		1,733,897		0		0		1,733,897		0		0		0
Premiums ceded		(48,610,706)		0		(38,290,096)		(10,320,610)		0		0		0
Total earned premium		804,040,463		0		777,946,657		26,287,831		0		0		(194,025)
Investment income		138,533,053		23,676,422		89,315,960		26,275,186		0		44,602		(779,117)
Realized gain on investments		660,230,900		410,816,802		206,169,965		42,334,256		0		339		909,538
Other income		4,297,510		2,488,780		665,946		746,054		2,797,693		576,426		(2,977,389)
Total revenues	$	1,607,101,926	$	436,982,004	$	1,074,098,528	$	95,643,327	$	2,797,693	$	621,367	$	(3,040,993)

Benefits & expenses:
Losses & policy benefits	$	524,355,214	$	0	$	494,777,921	$	30,127,971	$	0	$	0	$	(550,678)
Reinsurance recoveries		(23,068,989)		0		(23,140,637)		71,648		0		0		0
Commissions		165,724,962		0		157,318,046		8,406,916		0		0		0
Other operating expenses		80,153,365		5,317,550		69,594,847		6,142,293		1,991,705		122,837		(3,015,867)
Interest expense		12,840,294		12,840,294		0		0		535,782		0		(535,782)
Taxes, licenses & fees		24,265,452		247,926		23,462,757		830,409		(287,529)		11,889		0
Incr deferred acq expenses		(14,459,113)		0		(9,516,708)		(4,942,405)		0		0		0
Other expenses		3,332,207		0		3,332,143		64		0		0		0
Total expenses	$	773,143,392	$	18,405,770	$	715,828,369	$	40,636,896	$	2,239,958	$	134,726	$	(4,102,327)

Income before income taxes	$	833,958,534	$	418,576,234	$	358,270,159	$	55,006,431	$	557,735	$	486,641	$	1,061,334

Provision for income taxes:
Current operating income	$	52,521,171	$	1,110,956	$	48,910,938	$	2,133,775	$	204,800	$	160,702	$	-
Capital gains/losses		239,649,184		152,547,228		72,285,085		14,816,990		0		(119)		0
Deferred		(10,198,514)		(4,788,439)		(8,807,512)		2,992,000		33,620		350		371,467
Total income tax	$	281,971,841	$	148,869,745	$	112,388,511	$	19,942,765	$	238,420	$	160,933	$	371,467

Net income - current year	$	551,986,693	$	269,706,489	$	245,881,648	$	35,063,666	$	319,315	$	325,708	$	689,867

Net income - prior year	$	144,356,404	$	8,460,899	$	123,801,916	$	10,414,582	$	847,765	$	282,744	$	548,498

Change in net income		282.4%		3087.7%		98.6%		236.7%		-62.3%		15.2%

2006 First-Quarter Supplement


Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Three Months Ended March 31, 2005

		Total		CFC		CIC GROUP		CLIC		CFC-I		CINFIN		ELIM
Revenues:
Premiums earned:
Property casualty	$	794,495,941	$	0	$	794,701,014	$	0	$	0	$	0	$	(205,073)
Life		31,516,806		0		0		31,516,806		0		0		0
Accident health		1,653,157		0		0		1,653,157		0		0		0
Premiums ceded		(50,950,369)		0		(41,557,077)		(9,393,292)		0		0		0
Total earned premium		776,715,535		0		753,143,937		23,776,671		0		0		(205,073)
Investment income		127,039,271		21,092,775		80,751,515		23,974,477		426,698		29,875		763,931
Realized gain on investments		8,784,983		358,035		6,052,900		2,292,697		0		1,439		79,912
Other income		3,748,394		2,849,360		928,883		747,522		2,341,853		551,411		(3,670,635)
Total revenues	$	916,288,183	$	24,300,170	$	840,877,235	$	50,791,367	$	2,768,551	$	582,725	$	(3,031,865)

Benefits & expenses:
Losses & policy benefits	$	537,857,247	$	0	$	503,761,809	$	34,646,518	$	0	$	0	$	(551,080)
Reinsurance recoveries		(56,675,418)		0		(45,915,512)		(10,759,906)		0		0		0
Commissions		150,439,659		0		142,143,848		8,295,811		0		0		(3,013,982)
Other operating expenses		66,944,250		5,900,099		58,372,700		4,538,021		1,025,641		121,771		(310,646)
Interest expense		12,958,130		12,961,691		0		0		307,085		0		0
Taxes, licenses & fees		16,855,687		(171,673)		15,776,565		1,077,487		136,060		37,248		0
Incr deferred acq expenses		(11,368,992)		0		(8,618,797)		(2,750,195)		0		0		0
Other expenses		3,847,606		0		3,847,542		64		0		0		0
Total expenses	$	720,858,169	$	18,690,117	$	669,368,155	$	35,047,800	$	1,468,786	$	159,019	$	(3,875,708)

Income before income taxes	$	195,430,014	$	5,610,053	$	171,509,080	$	15,743,567	$	1,299,765	$	423,706	$	843,843

Provision for income taxes:
Current operating income	$	47,576,416	$	(7,448,640)	$	50,867,514	$	3,214,470	$	534,570	$	141,126	$	267,376
Capital gains/losses		2,936,089		155,457		1,950,219		802,444		0		0		27,969
Deferred		561,105		4,442,337		(5,110,569)		1,312,071		(82,570)		(164)		0
Total income tax	$	51,073,610	$	(2,850,846)	$	47,707,164	$	5,328,985	$	452,000	$	140,962	$	295,345

Net income - current year	$	144,356,404	$	8,460,899	$	123,801,916	$	10,414,582	$	847,765	$	282,744	$	548,498

Net income - prior year	$	146,118,606	$	20,121,155	$	116,596,933	$	8,443,249	$	672,672	$	284,597

Change in net income		-1.2%		-58.0%		6.2%		23.3%		26.0%		-0.7%

2006 First-Quarter Supplement


Cincinnati Financial Corporation
Consolidated Balance Sheets
(Dollars in millions except per share data)		March 31,		December 31,
		2006		2005
		(unaudited)
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2006—$5,629; 2005—$5,387)	$	5,640	$	5,476
Equity securities, at fair value (cost: 2006—$2,442; 2005—$2,128)		6,997		7,106
Short-term investments, at fair value (cost: 2006—$288; 2005—$75)		288		75
Securities lending collateral		330		0
Other invested assets		52		45
Cash and cash equivalents		206		119
Investment income receivable		111		118
Finance receivable		106		105
Premiums receivable		1,152		1,116
Reinsurance receivable		683		681
Prepaid reinsurance premiums		12		14
Deferred policy acquisition costs		448		428
Property and equipment, net, for company use (accumulated depreciation: 2006—$240; 2005—$232)		183		168
Other assets		68		66
Separate accounts		487		486
Total assets	$	16,763	$	16,003
Liabilities
Insurance reserves
Losses and loss expense	$	3,728	$	3,661
Life policy reserves		1,352		1,343
Unearned premiums		1,610		1,559
Securities lending payable		330		0
Other liabilities		834		455
Deferred income tax		1,427		1,622
6.125% senior debenture due 2034		371		371
6.90% senior debenture due 2028		28		28
6.92% senior debenture due 2028		392		392
Separate accounts		487		486
Total liabilities		10,559		9,917
Shareholders' equity
Common stock, par value-$2 per share; authorized: 2006-500 million shares, 2005- 500 million shares; issued: 2006-195 million shares, 2005-194 million shares		390		389
Paid-in capital		986		969
Retained earnings		2,581		2,088
Accumulated other comprehensive income-unrealized gains on investments and derivatives		2,972		3,284
Treasury stock at cost (2006—22 million shares, 2005—20 million shares)		(725)		(644)
Total shareholders' equity		6,204		6,086
Total liabilities and shareholders' equity	$	16,763	$	16,003

2006 First-Quarter Supplement


Cincinnati Financial Corporation
10-Year Net Income Reconciliation

(Dollars in millions except per share data)	Years ended December 31,
	2005			2004			2003			2002			2001			2000			1999			1998			1997			1996

Net income	$	602		$	584		$	374		$	238		$	193		$	118		$	255		$	242		$	299		$	224
One-time item		0			0			15			0			0			(25)			0			0			0			0
Net income before one-time item		602			584			359			238			193			143			255			242			299			224
Net realized investment gains and losses		40			60			(27)			(62)			(17)			(2)			0			43			45			31
Operating income before one-time item		562			524			386			300			210			145			255			199			254			193
Less catastrophe losses		(82)			(96)			(63)			(57)			(42)			(33)			(24)			(61)			(17)			(42)
Operating income before catastrophe losses and one-time item	$	644		$	620		$	449		$	357		$	252		$	178		$	279		$	260		$	271		$	235

Diluted per share data
Net income	$	3.40		$	3.28		$	2.10		$	1.32		$	1.07		$	0.67		$	1.37		$	1.28		$	1.61		$	1.17
One-time item		0.00			0.00			0.09			0.00			0.00			(0.14)			0.00			0.00			0.00			0.00
Net income before one-time item		3.40			3.28			2.01			1.32			1.07			0.81			1.37			1.28			1.61			1.17
Net realized investment gains and losses		0.23			0.34			(0.15)			(0.35)			(0.10)			(0.01)			0.00			0.23			0.26			0.16
Operating income before one-time item		3.17			2.94			2.16			1.67			1.17			0.82			1.37			1.05			1.35			1.01
Less catastrophe losses		(0.46)			(0.54)			(0.35)			(0.31)			(0.23)			(0.18)			(0.13)			(0.32)			(0.13)			(0.33)
Operating income before catastrophe losses and one-time item	$	3.63		$	3.48		$	2.51		$	1.98		$	1.40		$	1.00		$	1.50		$	1.37		$	1.49		$	1.35

Return on equity
Return on average equity		9.8	%		9.4	%		6.3	%		4.1	%		3.2	%		2.1	%		4.6	%		4.7	%		7.6	%		7.7	%
One-time item		0.0			0.0			(0.3)			0.0			0.0			0.4			0.0			0.0			0.0			0.0
Return on average equity before one-time item		9.8	%		9.4	%		6.0	%		4.1	%		3.2	%		2.5	%		4.6	%		4.7	%		7.6	%		7.7	%

Return on equity based on comprehensive income
ROE based on comprehensive income		1.6	%		4.6	%		13.8	%		(4.0)	%		2.5	%		13.1	%		1.9	%		19.6	%		42.6	%		20.3	%
One-time item		0.0			0.0			(0.3)			0.0			0.0			0.4			0.0			0.0			0.0			0.0
ROE based on comprehensive income before one-time item		1.6	%		4.6	%		13.5	%		(4.0)	%		2.5	%		13.5	%		1.9	%		19.6	%		42.6	%		20.3	%

Investment income, net of expenses	$	526		$	492		$	465		$	445		$	421		$	415		$	387		$	368		$	349		$	327
BOLI		0			0			0			0			0			(5)			0			0			0			0
Investment income before BOLI	$	526		$	492		$	465		$	445		$	421		$	410		$	387		$	368		$	349		$	327

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

2006 First-Quarter Supplement


Cincinnati Financial Corporation
Quarterly Net Income Reconciliation
																				&nb sp;
(In millions except per share data)	Three months ended													Six months ended			Nine months ended			Twelve months ended
	12/31/06	9/30/06	6/30/06	3/31/06		12/31/05		9/30/05		6/30/05		3/31/05		6/30/06	6/30/05		9/30/06	9/30/05		12/31/06	12/31/05

Net income				$	552	$	183	$	117	$	158	$	144		$	302		$	419		$	602
One-time item					0		0		0		0		0			0			0			0
Net income before one-time item					552		183		117		158		144			302			419			602
Net realized investment gains and losses					421		16		10		8		6			14			24			40
Operating income before one-time item					131		167		107		150		138			288			395			562
Less catastrophe losses					(26)		(28)		(43)		(9)		(2)			(11)			(54)			(82)
Operating income before catastrophe losses and one-time item				$	157	$	195	$	150	$	159	$	140		$	299		$	449		$	644

Diluted per share data
Net income				$	3.13	$	1.03	$	0.66	$	0.89	$	0.81		$	1.70		$	2.37		$	3.40
One-time item					0.00		0.00		0.00		0.00		0.00			0.00			0.00			0.00
Net income before one-time item					3.13		1.03		0.66		0.89		0.81			1.70			2.37			3.40
Net realized investment gains and losses					2.39		0.09		0.05		0.05		0.03			0.08			0.14			0.23
Operating income before one-time item					0.74		0.94		0.61		0.84		0.78			1.62			2.23			3.17
Less catastrophe losses					(0.14)		(0.16)		(0.24)		(0.05)		(0.01)			(0.06)			(0.30)			(0.46)
Operating income before catastrophe losses and one-time item				$	0.88	$	1.10	$	0.85	$	0.89	$	0.79		$	1.68		$	2.53		$	3.63

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.

2006 First-Quarter Supplement


Cincinnati Financial Corporation
Top Holdings – Common Stocks

(Dollars in millions)	As of and for the three months ended March 31, 2006
	Actual cost		Fair value		Percent of fair value		Earned dividend income


Fifth Third Bancorp	$	283	$	2,865	42.3	%	$	28
ExxonMobil Corporation		133		545	8.0			3
The Procter & Gamble Company		175		403	5.9			2
National City Corporation		171		342	5.0			4
PNC Financial Services Group, Inc.		62		317	4.7			2
Wyeth		62		215	3.2			1
AllianceBernstein Holding L.P.		53		210	3.1			3
Johnson & Johnson		190		209	3.1			1
U.S. Bancorp		137		201	2.9			2
Wells Fargo & Company		97		173	2.5			1
Piedmont Natural Gas Company, Inc.		64		135	2.0			1
FirstMerit Corporation		54		132	1.9			1
Sky Financial Group, Inc.		91		124	1.8			1
All other common stock holdings		664		914	13.6			7
Total	$	2,236	$	6,785	100.0	%	$	57

2006 First-Quarter Supplement


Cincinnati Insurance Group
GAAP Statements of Income

		For the Three Months Ended March 31,
		2006		2005		Change	% Change
Revenues:
Premiums earned:
Property casualty	$	816,236,753	$	794,701,014	$	21,535,739	2.71
Life		0		0		0	NA
Accident health		0		0		0	NA
Premiums ceded		(38,290,096)		(41,557,077)		3,266,981	7.86
Total premiums earned		777,946,657		753,143,937		24,802,720	3.29
Investment income		89,315,960		80,751,515		8,564,445	10.61
Realized gain on investments		206,169,965		6,052,900		200,117,065	3,306.14
Other income		665,946		928,883		(262,937)	(28.31)
Total revenues	$	1,074,098,528	$	840,877,235	$	233,221,293	27.74

Benefits & expenses:
Losses & policy benefits	$	494,777,921	$	503,761,809	$	(8,983,888)	(1.78)
Reinsurance recoveries		(23,140,637)		(45,915,512)		22,774,875	49.60
Commissions		157,318,046		142,143,848		15,174,198	10.68
Other operating expenses		69,594,847		58,372,700		11,222,147	19.22
Interest expense		0		0		0	NA
Taxes, licenses & fees		23,462,757		15,776,565		7,686,192	48.72
Incr deferred acq expense		(9,516,708)		(8,618,797)		(897,911)	(10.42)
Other expenses		3,332,143		3,847,542		(515,399)	(13.40)
Total expenses	$	715,828,369	$	669,368,155	$	46,460,214	6.94
Income before income taxes	$	358,270,159	$	171,509,080	$	186,761,079	108.89

Provision for income taxes:
Current operating income	$	48,910,838	$	50,867,514	$	(1,956,576)	(3.85)
Current realized investments gains and losses		72,285,085		1,950,219		70,334,866	3,606.51
Deferred		(8,807,512)		(5,110,569)		(3,696,943)	(72.34)
Total income taxes	$	112,388,511	$	47,707,164	$	64,681,347	135.58

Net income	$	245,881,648	$	123,801,916	$	122,079,732	98.61

2006 First-Quarter Supplement


Cincinnati Insurance Group
Statutory Statements of Income

	For the Three Months Ended March 31,
		2006		2005	% Change
Underwriting income
Net premiums written	$	828,775,078	$	796,742,733	4.02
Unearned premiums increase		50,828,418		43,598,796
Earned premiums		777,946,660		753,143,937	3.29

Losses incurred	$	388,689,030	$	378,452,481	2.70
Allocated loss expenses incurred		33,233,518		35,735,606	(7.00)
Unallocated loss expenses incurred		49,714,738		43,658,211	13.87
Other underwriting expenses incurred		236,693,489		208,200,671	13.69
Workers compensation dividend incurred		3,917,858		3,392,935	15.47

Total underwriting deductions	$	712,248,634	$	669,439,903	6.39
Net underwriting gain (loss)	$	65,698,026	$	83,704,034	(21.51)

Investment income
Gross investment income earned	$	90,155,865	$	81,620,910	10.46
Net investment income earned		89,224,775		80,751,514	10.49
Net realized capital gains		134,243,729		12,183,304	1001.87
Net investment gains (excl. subs)	$	223,468,504	$	92,934,818	140.46
Dividend from subsidiary
Net investment gains	$	223,468,504	$	92,934,818	140.46


Other income	$	509,014	$	478,276	6.43

Net income before federal income taxes	$	289,675,545	$	177,117,128	63.55
Federal and foreign income taxes incurred	$	48,138,557	$	52,817,734	(8.86)
Net income (statutory)	$	241,536,988	$	124,299,394	94.32

* 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.

2006 First-Quarter Supplement


Cincinnati Insurance Group – Consolidated
Statutory Quarterly Analysis
(Based on reported data - see Page 23 for adjusted data)

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/06	9/30/06	6/30/06	3/31/06			12/31/05			9/30/05			6/30/05			3/31/05			6/30/06	6/30/05			9/30/06	9/30/05			12/31/06	12/31/05
Net premiums written				$	829		$	727		$	761		$	791		$	797			$	1,588			$	2,349				$	3,076
Net premiums earned					778			775			765			765			753				1,518				2,283					3,058
Losses paid					347			378			348			336			345				681				1,029					1,407
Loss reserve change					42			(30)			72			23			33				56				129					99
Total losses incurred				$	389		$	348		$	420		$	359		$	378			$	737			$	1,158				$	1,506
Allocated loss expense paid					27			32			30			29			25				54				84					116
Allocated loss expense reserve change					6			(7)			10			10			11				21				31					24
Total allocated loss expense incurred				$	33		$	25		$	40		$	39		$	36			$	75			$	116				$	140
Unallocated loss expense paid					40			46			38			37			34				71				108					155
Unallocated loss expense reserve change					10			(2)			3			0			10				10				13					11
Total unallocated loss expense incurred				$	50		$	44		$	41		$	37		$	44			$	81			$	121				$	166
Underwriting expenses incurred					240			233			237			234			212				445				682					914
Underwriting profit (loss)				$	66		$	125		$	27		$	96		$	83			$	180			$	206				$	332

Loss Detail
Losses $1 million or more				$	32		$	38		$	27		$	28		$	43			$	71			$	98				$	136
Losses $250 thousand to $1 million					38			36			35			36			32				68				104					139
Development and case reserve increases of $250,000 or more					50			54			39			40			36				76				114					168
Large losses subtotal				$	120		$	128		$	101		$	104		$	111			$	215			$	316				$	443
IBNR incurred					6			(58)			20			14			13				27				47					(11)
Catastrophe losses incurred					39			44			66			15			2				17				83					127
Remaining incurred					224			234			234			226			252				478				712					947
Total losses incurred				$	389		$	348		$	420		$	359		$	378			$	737			$	1,158				$	1,506

Ratio Data
Loss ratio					50.0	%		44.9	%		54.9	%		46.9	%		50.3	%			48.6	%			50.7	%				49.2	%
Allocated loss expense ratio					4.3			3.2			5.3			5.2			4.7				5.0				5.1					4.6
Unallocated loss expense ratio					6.4			5.7			5.3			4.8			5.8				5.3				5.3					5.4
Net underwriting expense ratio					28.9			32.0			31.1			29.6			26.6				28.1				29.0					29.7
Statutory combined ratio					89.6	%		85.8	%		96.6	%		86.5	%		87.4	%			87.0	%			90.1	%				89.0	%
Statutory combined ratio excluding catastrophes					84.6	%		80.2	%		88.0	%		84.6	%		87.1	%			85.8	%			86.5	%				84.9	%

Loss Ratio
Losses $1 million or more					4.2	%		5.0	%		3.6	%		3.6	%		5.7	%			4.7	%			4.3	%				4.5	%
Losses $250 thousand to $1 million					4.9			4.5			4.6			4.8			4.3				4.5				4.5					4.5
Development and case reserve increases of $250,000 or more					6.4			6.9			5.1			5.2			4.7				5.0				5.0					5.5
Large losses subtotal					15.5	%		16.4	%		13.2	%		13.6	%		14.7	%			14.2	%			13.8	%				14.5	%
IBNR incurred					0.8			(7.4)			2.5			1.8			1.8				1.8				2.0					(0.4)
Total catastrophe losses incurred					5.0			5.6			8.6			1.9			0.3				1.1				3.6					4.1
Remaining incurred					28.6			30.3			30.6			29.6			33.5				31.5				31.2					31.0
Total loss ratio					50.0	%		44.9	%		54.9	%		46.9	%		50.3	%			48.6	%			50.7	%				49.2	%

Loss Claim Count
Losses $1 million or more					14			24			21			17			15				32				53					77
Losses $250 thousand to $1 million					95			92			81			93			73				166				247					339
Development and case reserve increases of $250,000 or more					85			100			72			61			67				128				200					300
Large losses total					194			216			174			171			155				326				500					716
Dollar amounts shown are rounded to the millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.
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.

2006 First-Quarter Supplement


Cincinnati Insurance Group - Commercial Lines
Statutory Quarterly Analysis
(Based on reported data - see Page 24 for adjusted data)
(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/06	9/30/06	6/30/06	3/31/06			12/31/05			9/30/05			6/30/05			3/31/05			6/30/06	6/30/05			9/30/06	9/30/05			12/31/06	12/31/05
Net premiums written				$	668		$	548		$	546		$	567		$	629			$	1,195			$	1,741				$	2,290
Net premiums earned					582			576			564			563			551				1,114				1,678					2,254
Losses paid					234			256			228			214			219				434				662					918
Loss reserve change					53			(19)			67			32			51				84				151					132
Total losses incurred				$	287		$	237		$	295		$	246		$	270			$	518			$	813				$	1,050
Allocated loss expense paid					24			28			27			26			22				48				75					103
Allocated loss expense reserve change					5			(1)			9			10			10				20				29					28
Total allocated loss expense incurred				$	30		$	27		$	36		$	36		$	32			$	68			$	104				$	131
Unallocated loss expense paid					28			31			26			25			22				48				73					105
Unallocated loss expense reserve change					10			(1)			3			1			10				11				13					12
Total unallocated loss expense incurred				$	38		$	30		$	29		$	26		$	32			$	59			$	87				$	117
Underwriting expenses incurred					179			182			173			165			156				321				493					675
Underwriting profit (loss)				$	50		$	100		$	31		$	90		$	61			$	148			$	181				$	281

Loss Detail
Losses $1 million or more				$	30		$	31		$	24		$	26		$	43			$	68			$	93				$	124
Losses $250 thousand to $1 million					28			28			26			29			22				51				77					105
Development and case reserve increases of $250,000 or more					44			47			35			38			29				67				103					149
Large losses subtotal				$	103		$	106		$	86		$	93		$	94			$	186			$	272				$	378
IBNR incurred					6			(36)			17			12			12				24				41					6
Catastrophe losses incurred					30			14			53			2			6				9				62					76
Remaining incurred					149			153			139			139			159				298				437					590
Total losses incurred				$	287		$	237		$	295		$	246		$	271			$	517			$	813				$	1,050

Ratio Data
Loss ratio					49.2	%		41.1	%		52.4	%		43.8	%		49.1	%			46.4	%			48.4	%				46.6	%
Allocated loss expense ratio					5.1			4.7			6.5			6.4			5.8				6.1				6.2					5.8
Unallocated loss expense ratio					6.5			5.3			5.1			4.6			5.9				5.2				5.2					5.2
Net underwriting expense ratio					26.8			33.2			31.6			29.1			24.7				26.8				28.3					29.5
Statutory combined ratio					87.5	%		84.3	%		95.5	%		83.9	%		85.5	%			84.5	%			88.1	%				87.1	%
Statutory combined ratio excluding catastrophes					82.5	%		81.9	%		86.0	%		83.5	%		84.4	%			83.8	%			84.5	%				83.7	%

Loss Ratio
Losses $1 million or more					5.2	%		5.4	%		4.3	%		4.5	%		7.8	%			6.1	%			5.5	%				5.5	%
Losses $250 thousand to $1 million					4.8			4.8			4.7			5.2			3.9				4.5				4.6					4.6
Development and case reserve increases of $250,000 or more					7.6			8.1			6.3			6.8			5.3				6.0				6.1					6.6
Large losses subtotal					17.6	%		18.3	%		15.2	%		16.5	%		17.0	%			16.6	%			16.2	%				16.8	%
IBNR incurred					1.0			(6.1)			2.9			2.2			2.2				2.2				2.4					0.2
Total catastrophe losses incurred					5.1			2.4			9.5			0.4			1.1				0.8				3.7					3.4
Remaining incurred					25.6			26.5			24.7			24.7			28.8				26.8				26.1					26.2
Total loss ratio					49.2	%		41.1	%		52.4	%		43.8	%		49.1	%			46.4	%			48.4	%				46.6	%
Dollar amounts shown are rounded to the millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.
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.

2006 First-Quarter Supplement


Cincinnati Insurance Group - Personal Lines
Statutory Quarterly Analysis
(Based on reported data - see Page 25 for adjusted data)
(Dollars in millions)	Three months ended																		Six months ended					Nine months ended				Twelve months ended
	12/31/06	9/30/06	6/30/06	3/31/06			12/31/05			9/30/05			6/30/05			3/31/05			6/30/06		6/30/05			9/30/06	9/30/05			12/31/06	12/31/05
Net premiums written				$	161		$	179		$	215		$	224		$	168				$	393			$	608				$	786
Net premiums earned					196			199			201			202			202					404				605					804
Losses paid					113			122			120			122			126					247				367					489
Loss reserve change					(11)			(11)			5			(9)			(18)					(27)				(22)					(33)
Total losses incurred				$	102		$	111		$	125		$	113		$	108				$	220			$	345				$	456
Allocated loss expense paid					3			4			3			3			3					6				9					13
Allocated loss expense reserve change					0			(6)			1			1			1					1				2					(4)
Total allocated loss expense incurred				$	3		$	(2)		$	4		$	4		$	4				$	7			$	11				$	9
Unallocated loss expense paid					12			15			12			12			12					23				35					50
Unallocated loss expense reserve change					0			(1)			0			(1)			0					(1)				0					(1)
Total unallocated loss expense incurred				$	12		$	14		$	12		$	11		$	12				$	22			$	35				$	49
Underwriting expenses incurred					61			51			64			69			56					125				189					239
Underwriting profit (loss)				$	17		$	25		$	(4)		$	5		$	22				$	30			$	26				$	51

Loss Detail
Losses $1 million or more				$	2		$	7		$	3		$	2		$	0				$	2			$	5				$	13
Losses $250 thousand to $1 million					10			8			9			8			10					18				27					34
Development and case reserve increases of $250,000 or more					5			7			3			2			7					9				12					19
Large losses subtotal				$	18		$	22		$	15		$	12		$	17				$	29			$	44				$	66
IBNR incurred					0			(22)			3			1			1					3				6					(17)
Catastrophe losses incurred					10			30			13			12			(4)					8				21					51
Remaining incurred					74			81			94			87			93					180				274					356
Total losses incurred				$	102		$	111		$	125		$	112		$	107				$	220			$	345				$	456

Ratio Data
Loss ratio					52.2	%		55.9	%		62.2	%		55.6	%		53.3	%		%		54.4	%			57.0	%				56.7	%
Allocated loss expense ratio					1.7			(1.2)			2.0			1.8			1.8					1.8				1.9					1.1
Unallocated loss expense ratio					6.2			7.0			6.1			5.5			5.7					5.6				5.8					6.1
Net underwriting expense ratio					38.0			28.4			29.7			30.7			33.2					31.8				31.0					30.4
Statutory combined ratio					98.1	%		90.1	%		99.9	%		93.6	%		94.0	%		%		93.6	%			95.7	%				94.3	%
Statutory combined ratio excluding catastrophes					93.1	%		75.2	%		93.6	%		87.4	%		96.0	%		%		91.5	%			92.2	%				88.0	%

Loss Ratio
Losses $1 million or more					1.2	%		3.6	%		1.5	%		1.1	%		0.0	%		%		0.6	%			0.9	%				1.6	%
Losses $250 thousand to $1 million					5.3			3.9			4.3			3.7			5.2					4.4				4.4					4.3
Development and case reserve increases of $250,000 or more					2.8			3.5			1.7			1.0			3.2					2.1				2.0					2.4
Large losses subtotal					9.2	%		11.0	%		7.6	%		5.8	%		8.4	%		%		7.1	%			7.3	%				8.2	%
IBNR incurred					0.0			(11.2)			1.4			0.6			0.7					0.7				0.9					(2.1)
Total catastrophe losses incurred					5.0			14.9			6.2			6.2			(2.0)					2.1				3.5					6.3
Remaining incurred					38.0			41.2			46.9			42.9			46.2					44.5				45.3					44.3
Total loss ratio					52.2	%		55.9	%		62.2	%		55.5	%		53.3	%		%		54.4	%			57.0	%				56.7	%
Dollar amounts shown are rounded to the millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.
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.

2006 First-Quarter Supplement


Cincinnati Insurance Group
Direct Written Premiums by Line of Business for the Three Months Ended March 31, 2006
(Dollars in millions)
																			03/31/06		03/31/05
	Comm		Comm		Specialty		Comm		Work		Bond&			Home		Pers		Other	Agency		Agency		Change
State	Prop		Cas		Programs		Auto		Comp		Exec Risk			Owner		Auto		Personal		Direct	Direct		%

AL	$	2.9	$	4.6	$	1.8	$	2.3	$	0.4	$	0.3	$	4.7	$	3.7	$	1.0	$	21.7	$	21.5	0.9
AZ		1.8		3.1		0.3		2.6		0.1		0.1		0.0		0.0		0.0		8.0		7.8	4.1
AR		2.8		2.9		0.9		2.0		1.8		0.3		0.8		0.7		0.2		12.4		12.3	1.6
DE		0.0		0.1		0.0		0.1		0.4		0.0		0.0		0.0		0.0		0.6		0.2	350.7
FL		5.6		8.9		1.1		3.7		0.8		0.5		4.6		3.2		1.0		29.4		26.0	13.0
GA		5.3		7.5		1.6		5.4		3.8		1.3		5.9		7.2		1.4		39.4		38.0	3.6
ID		0.8		1.7		0.3		1.1		0.0		0.2		0.0		0.0		0.0		4.1		4.4	(4.4)
IL		13.5		21.6		3.4		11.1		18.1		1.7		4.0		5.9		1.5		80.8		75.3	7.4
IN		12.0		15.4		2.1		8.7		10.0		1.4		5.6		6.6		1.4		63.2		64.1	(1.2)
IA		3.7		6.1		1.1		2.6		7.2		0.5		0.9		1.0		0.4		23.5		23.6	0.3
KS		2.3		2.0		0.7		1.4		2.1		0.4		1.3		1.2		0.3		11.7		10.5	10.3
KY		4.5		5.4		1.4		4.3		0.9		0.6		3.1		4.4		0.9		25.5		26.5	(3.5)
MD		1.4		3.3		0.3		2.3		2.6		0.3		0.3		0.0		0.1		10.6		8.5	23.3
MI		7.8		11.8		3.6		5.8		6.0		1.2		3.4		3.2		0.7		43.5		43.4	0.1
MN		4.6		7.5		1.2		3.2		2.3		0.6		1.3		1.6		0.9		23.2		22.1	5.2
MO		5.0		8.0		1.4		3.3		4.4		0.3		1.1		0.7		0.2		24.4		22.2	10.0
MT		1.6		3.2		0.3		1.9		0.0		0.1		0.0		0.0		0.0		7.1		6.1	16.0
NE		1.8		2.4		0.5		1.2		2.8		0.3		0.3		0.3		0.1		9.7		10.0	(2.1)
NH		0.7		0.8		0.2		0.4		0.8		0.2		0.2		0.2		0.1		3.6		3.4	6.6
NY		1.6		6.1		0.3		2.1		0.7		0.4		0.0		0.0		0.0		11.2		9.7	14.9
NC		7.3		10.7		3.0		6.2		6.5		1.8		0.3		0.3		0.7		36.8		35.4	4.0
ND		1.1		1.3		0.2		0.7		0.0		0.2		0.1		0.1		0.0		3.7		3.9	(1.7)
OH		27.0		47.7		5.6		20.5		(0.3)		6.1		19.0		31.0		6.5		163.1		168.0	(2.9)
PA		8.6		14.1		2.4		8.7		15.9		1.4		1.3		1.8		0.8		55.0		54.3	1.4
SC		2.1		3.3		0.7		2.1		1.4		0.5		0.0		0.0		0.1		10.2		8.5	19.1
SD		0.8		1.3		0.1		0.5		1.4		0.1		0.0		0.0		0.0		4.2		3.1	36.4
TN		4.9		8.0		2.4		5.2		4.1		1.1		1.8		1.8		0.6		29.9		27.6	8.5
UT		0.9		1.7		0.1		0.9		0.1		0.4		0.0		0.0		0.0		4.1		3.8	7.2
VT		0.8		1.2		0.3		0.8		1.8		0.1		0.2		0.2		0.1		5.5		5.2	2.2
VA		7.8		11.1		1.3		7.4		7.0		1.3		1.6		2.2		0.6		40.3		34.9	15.7
WV		1.8		2.5		0.6		1.8		0.0		0.2		0.2		0.0		0.1		7.2		6.3	12.5
WI		6.1		10.2		1.4		4.1		9.4		0.7		1.8		2.3		0.7		36.7		34.7	5.1
All Other		1.1		1.9		0.1		0.9		1.3		0.4		0.1		0.0		0.2		6.0		5.9	5.9

Total Agency Direct	$	150.0	$	237.4	$	40.7	$	125.3	$	113.8	$	25.0	$	63.9	$	79.6	$	20.6	$	856.3	$	827.2	3.5
Other Direct		0.3		0.2		-		0.2		2.0		-		0.4		0.3		0.5		3.9		3.5	10.4
Total Direct	$	150.3	$	237.6	$	40.7	$	125.5	$	115.8	$	25.0	$	64.3	$	79.9	$	21.1	$	860.2	$	830.7	3.5

2006 First-Quarter Supplement


Cincinnati Insurance Group
Quarterly Property Casualty Data - By Commercial Lines of Business

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/06	9/30/06	6/30/06	3/31/06			12/31/05			9/30/05			6/30/05			3/31/05			6/30/06	6/30/05			9/30/06	9/30/05			12/31/06	12/31/05
Commercial property:
Written premiums				$	141		$	121		$	120		$	128		$	133			$	261			$	382			$	502
Earned premiums					128			127			120			124			123				247			$	366				493
Loss and loss expenses ratio					70.6	%		51.7	%		85.4	%		42.1	%		65.8	%			53.6	%			65.6	%			62.0	%
Less catastrophe loss ratio					21.6			10.6			36.7			1.3			3.7				2.5				15.3				14.1
Loss and loss expenses excluding catastrophe loss ratio					49.0	%		41.1	%		48.7	%		40.8	%		62.1	%			51.1	%			50.3	%			47.9	%

Commercial casualty:
Written premiums				$	228		$	189		$	182		$	191		$	217			$	408			$	590			$	779
Earned premiums					197			195			191			190			183				373				564				759
Loss and loss expenses ratio					51.3	%		5.3	%		47.5	%		55.2	%		51.1	%			53.7	%			51.6	%			39.7	%
Less catastrophe loss ratio					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
Loss and loss expenses excluding catastrophe loss ratio					51.3	%		5.3	%		47.5	%		55.2	%		51.1	%			53.7	%			51.6	%			39.7	%

Specialty package:
Written premiums				$	40		$	32		$	35		$	34		$	36			$	71			$	105				138
Earned premiums					36			34			34			34			34				68				103				137
Loss and loss expenses ratio					64.3	%		53.4	%		64.5	%		57.2	%		87.8	%			72.4	%			71.5	%			67.0	%
Less Catastrophe loss ratio					3.4			4.6			4.5			1.8			4.6				3.1				5.4				5.2
Loss and loss expenses excluding catastrophe loss ratio					60.9	%		48.8	%		60.0	%		55.4	%		83.2	%			69.3	%			66.1	%			61.8	%

Commercial auto:
Written premiums				$	126		$	108		$	108		$	111		$	122			$	233			$	341			$	448
Earned premiums					112			117			115			113			113				226				340				457
Loss and loss expenses ratio					57.7	%		61.5	%		60.6	%		59.1	%		57.9	%			59.0	%			59.6	%			60.1	%
Less catastrophe loss ratio					0.6			0.0			0.2			0.2			0.0				0.1				0.1				0.1
Loss and loss expenses excluding catastrophe loss ratio					57.1	%		61.5	%		60.4	%		58.9	%		57.9	%			58.9	%			59.5	%			60.0	%

Workers' compensation:
Written premiums				$	112		$	80		$	76		$	83		$	99			$	182			$	258			$	338
Earned premiums					88			85			82			82			79				161				244				328
Loss and loss expenses ratio					78.6	%		134.2	%		73.8	%		77.2	%		76.6	%			76.9	%			75.9	%			90.9	%
Less catastrophe loss ratio					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
Loss and loss expenses excluding catastrophe loss ratio					78.6	%		134.2	%		73.8	%		77.2	%		76.6	%			76.9	%			75.9	%			90.9	%

Surety and executive risk:
Written premiums				$	22		$	21		$	25		$	18		$	20			$	38			$	63			$	85
Earned premiums					21			21			21			19			19				38				59				80
Loss and loss expenses ratio					26.5	%		69.2	%		31.5	%		7.4	%		26.3	%			16.9	%			22.0	%			34.2	%
Less catastrophe loss ratio					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
Loss and loss expenses excluding catastrophe loss ratio					26.5	%		69.2	%		31.5	%		7.4	%		26.3	%			16.9	%			22.0	%			34.2	%

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.

2006 First-Quarter Supplement


Cincinnati Insurance Group
Quarterly Property Casualty Data - By Personal Lines of Business

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/06	9/30/06	6/30/06	3/31/06			12/31/05			9/30/05			6/30/05			3/31/05			6/30/06	6/30/05			9/30/06	9/30/05			12/31/06	12/31/05
Homeowner:
Written premiums				$	62		$	67		$	81		$	81		$	59			$	140			$	221			$	288
Earned premiums					73			71			72			70			69				140				211				282
Loss and loss expenses ratio					64.0	%		83.4	%		74.3	%		74.8	%		64.6	%			70.3	%			72.9	%			75.6	%
Less catastrophe loss ratio					11.1			43.2			11.5			14.5			(6.1)				4.3				8.0				16.9
Loss and loss expenses excluding catastrophe loss ratio					52.9	%		40.2	%		62.8	%		60.3	%		70.7	%			66.0	%			64.9	%			58.7	%

Personal auto:
Written premiums				$	80		$	89		$	112		$	119		$	90			$	209			$	321			$	409
Earned premiums					101			104			108			110			111				221				329				432
Loss and loss expenses ratio					60.1	%		54.0	%		65.0	%		61.0	%		60.4	%			60.1	%			61.7	%			59.9	%
Less catastrophe loss ratio					0.8			0.6			0.4			1.0			0.2				0.6				0.6				0.6
Loss and loss expenses excluding catastrophe loss ratio					59.3	%		53.4	%		64.6	%		60.0	%		60.2	%			59.5	%			61.1	%			59.3	%

Other personal:
Written premiums				$	20		$	21		$	23		$	25		$	20			$	45			$	68			$	89
Earned premiums					22			22			22			23			22				45				67				89
Loss and loss expenses ratio					47.4	%		37.0	%		66.9	%		32.6	%		49.5	%			37.2	%			47.1	%			44.6	%
Less Catastrophe loss ratio					3.8			2.0			5.0			1.0			3.9				2.5				3.3				3.0
Loss and loss expenses excluding catastrophe loss ratio					43.6	%		35.0	%		61.9	%		31.6	%		45.6	%			34.7	%			43.8	%			41.6	%


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

2006 First-Quarter Supplement


Cincinnati Insurance Group
10-Year Property Casualty Data - Consolidated
(Dollars in millions)	Years ended December 31,
		2005			2004			2003			2002			2001			2000			1999			1998			1997			1996
Premiums																									& nbsp;
Adjusted written premiums (statutory)*	$	3,097		$	3,026		$	2,789		$	2,496		$	2,188		$	1,936		$	1,681		$	1,558		$	1,472		$	1,384
Codification		0			0			0			0			402			(55)			0			0			0			0
Written premium adjustment -- statutory only		(21)			(29)			26			117			0			0			0			0			0			0
Reported written premiums (statutory)**		3,076			2,997			2,815			2,613			2,590			1,881			1,681			1,558			1,472			1,384
Unearned premiums change		(18)			(78)			(162)			(222)			(517)			(53)			(23)			(15)			(18)			(17)
Earned premiums (GAAP)	$	3,058		$	2,919		$	2,653		$	2,391		$	2,073		$	1,828		$	1,658		$	1,543		$	1,454		$	1,367
																								;
Year-over-year growth rate:																									& nbsp;
Adjusted written premiums (statutory)		2.3	%		8.5	%		11.7	%		14.0	%		13.0	%		15.2	%		7.9	%		5.8	%		6.4	%		6.8	%
Written premiums (statutory)		2.6	%		6.5	%		7.7	%		0.9	%		37.7	%		11.9	%		7.9	%		5.8	%		6.4	%		6.8	%
Earned premiums		4.8	%		10.0	%		11.0	%		15.3	%		13.4	%		10.3	%		7.5	%		6.1	%		6.4	%		8.2	%

Statutory combined ratio																									& nbsp;
Reported statutory combined ratio*		89.0	%		89.4	%		94.2	%		98.4	%		99.5	%		112.5	%		100.4	%		104.2	%		98.3	%		103.5	%
Codification		0.0			0.0			0.0			0.0			4.1			(0.9)			0.0			0.0			0.0			0.0
Written premium adjustment -- statutory only		nm			nm			nm			1.2			0.0			0.0			0.0			0.0			0.0			0.0
One-time item		0.0			0.0			0.8			0.0			0.0			(1.7)			0.0			0.0			0.0			0.0
Statutory combined ratio (adjusted)		89.0	%		89.4	%		95.0	%		99.6	%		103.6	%		109.9	%		100.4	%		104.2	%		98.3	%		103.5	%
Less catastrophe losses		4.1			5.1			3.6			3.6			3.1			2.7			2.5			6.1			XXXX			XXXX
Statutory combined ratio excluding catastrophe losses (adjusted)		84.9	%		84.3	%		91.4	%		96.0	%		100.5	%		107.2	%		97.9	%		98.1	%		XXXX			XXXX
																								;		XXXX			XXXX
Reported commission expense ratio*		19.2	%		19.2	%		17.6	%		15.9	%		13.9	%		17.4	%		17.4	%		17.6	%		XXXX			XXXX
Codification		0.0			0.0			0.0			0.0			2.6			(0.5)			0.0			0.0			XXXX			XXXX
Written premium adjustment -- statutory only		nm			nm			nm			0.8			0.0			0.0			0.0			0.0			XXXX			XXXX
One-time item		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			XXXX			XXXX
Commission expense ratio (adjusted)		19.2	%		19.2	%		17.6	%		16.7	%		16.5	%		16.9	%		17.4	%		17.6	%		XXXX			XXXX
																								;		XXXX			XXXX
Reported other expense ratio*		10.5	%		10.1	%		8.9	%		9.6	%		8.7	%		12.6	%		11.4	%		11.9	%		XXXX			XXXX
Codification		0.0			0.0			0.0			0.0			1.5			(0.4)			0.0			0.0			XXXX			XXXX
Written premium adjustment -- statutory only		nm			nm			nm			0.4			0.0			0.0			0.0			0.0			XXXX			XXXX
One-time item		0.0			0.0			0.8			0.0			0.0			(1.7)			0.0			0.0			XXXX			XXXX
Other expense ratio (adjusted)		10.5	%		10.1	%		9.7	%		10.0	%		10.2	%		10.5	%		11.4	%		11.9	%		XXXX			XXXX
																								;		XXXX			XXXX
Reported statutory expense ratio*		29.7	%		29.3	%		26.5	%		25.5	%		22.6	%		30.0	%		28.8	%		29.5	%		XXXX			XXXX
Codification		0.0			0.0			0.0			0.0			4.1			(0.9)			0.0			0.0			XXXX			XXXX
Written premium adjustment -- statutory only		nm			nm			nm			1.2			0.0			0.0			0.0			0.0			XXXX			XXXX
One-time item		0.0			0.0			0.8			0.0			0.0			(1.7)			0.0			0.0			XXXX			XXXX
Statutory expense ratio (adjusted)		29.7	%		29.3	%		27.3	%		26.7	%		26.7	%		27.4	%		28.8	%		29.5	%		XXXX			XXXX

GAAP combined ratio																									& nbsp;
GAAP combined ratio		89.2	%		89.8	%		94.7	%		99.7	%		104.9	%		112.8	%		100.2	%		104.3	%		98.4	%		103.6	%
One-time item		0.0			0.0			0.8			0.0			0.0			(2.1)			0.0			0.0			0.0			0.0
GAAP combined ratio before one-time item		89.2	%		89.8	%		95.5	%		99.7	%		104.9	%		110.7	%		100.2	%		104.3	%		98.4	%		103.6	%

Written premiums to surplus																									& nbsp;
Adjusted premiums to statutory surplus ratio		0.739			0.721			1.002			1.067			0.864			XXXX			XXXX			XXXX			XXXX			XXXX
Written premium adjustment		(0.005)			(0.007)			0.010			0.050			0.159			XXXX			XXXX			XXXX			XXXX			XXXX
Reported premiums to statutory surplus ratio		0.734			0.714			1.012			1.117			1.023			XXXX			XXXX			XXXX			XXXX			XXXX

Dollar amounts shown are rounded to the millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.
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.
*Prior to 2001, property casualty written premiums were recognized as they were billed throughout the policy period. Effective January 1, 2001, written premiums have been recognized on an annualized basis at the effective date of the policy. Written premiums for 2000 were reclassified to conform with the 2001 presentation; information was not readily available to reclassify earlier year statutory data. The growth rates in written premiums between 1999 and 2000 are overstated because 1999 premiums are shown on a billed basis.*

2006 First-Quarter Supplement


Cincinnati Insurance Group
6-Year Property Casualty Data - Commercial Lines

(Dollars in millions)	Years ended December 31,
	2005			2004			2003			2002			2001			2000
Premiums
Adjusted written premiums (statutory)*	$	2,306		$	2,209		$	2,009		$	1,795		$	1,551		$	1,326
Codification		0			0			0			0			276			(51)
Written premium adjustment – statutory only		(16)			(23)			22			110			0			0
Reported written premiums (statutory)**	$	2,290		$	2,186		$	2,031		$	1,905		$	1,827		$	1,275
Unearned premiums change		(36)			(60)			(123)			(184)			(374)			(43)
Earned premiums (GAAP)	$	2,254		$	2,126		$	1,908		$	1,721		$	1,453		$	1,232

Year-over-year growth rate:
Adjusted written premiums (statutory)		4.4	%		10.0	%		11.9	%		15.8	%		16.9	%		20.5	%
Written premiums (statutory)		4.7	%		7.6	%		6.6	%		4.2	%		43.3	%		15.9	%
Earned premiums		6.0	%		11.4	%		10.8	%		18.6	%		17.9	%		13.2	%

Statutory combined ratio
Reported statutory combined ratio*		87.1	%		83.7	%		90.9	%		95.3	%		96.7	%		117.2	%
Codification		0.0			0.0			0.0			0.0			4.0			(1.2)
Written premium adjustment – statutory only		nm			nm			nm			1.5			0.0			0.0
One-time item		0.0			0.0			0.7			0.0			0.0			(1.6)
Statutory combined ratio (adjusted)		87.1	%		83.7	%		91.6	%		96.8	%		100.7	%		114.4	%
Less catastrophe losses		3.4			3.4			2.2			2.3			1.9			1.5
Statutory combined ratio excluding catastrophe losses (adjusted)		83.7	%		80.3	%		89.4	%		94.5	%		98.8	%		112.9	%

GAAP combined ratio
GAAP combined ratio		87.4	%		84.1	%		91.3	%		96.6	%		101.7	%		117.2	%
One-time item		0.0			0.0			0.8			0.0			0.0			(2.0)
GAAP combined ratio before one-time item		87.4	%		84.1	%		92.1	%		96.6	%		101.7	%		115.2	%

Dollar shown are rounded to the millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.
nm-Not amounts 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.
**Prior to 2001, property casualty written premiums were recognized as they were billed throughout the policy period. Effective January 1, 2001, written premiums have been recognized on an annualized basis at the effective date of the policy. Written premiums for 2000 were reclassified to conform with the 2001 presentation; information was not readily available to reclassify earlier year statutory data. The growth rates in written premiums between 1999 and 2000 are overstated because 1999 premiums are shown on a billed basis.

2006 First-Quarter Supplement


Cincinnati Insurance Group
6-Year Property Casualty Data - Personal Lines

(Dollars in millions)	Years ended December 31,
	2005			2004			2003			2002			2001			2000
Premiums
Adjusted written premiums (statutory)*	$	791		$	817		$	780		$	701		$	637		$	610
Codification		0			0			0			0			126			(4)
Written premium adjustment – statutory only		(5)			(6)			4			7			0			0
Reported written premiums (statutory)**	$	786		$	811		$	784		$	708		$	763		$	606
Unearned premiums change		18			(18)			(39)			(38)			(143)			(10)
Earned premiums (GAAP)	$	804		$	793		$	745		$	670		$	620		$	596

Year-over-year growth rate:
Adjusted written premiums (statutory)		(3.2)	%		4.7	%		12.0	%		9.8	%		4.6	%		5.0	%
Written premiums (statutory)		(3.0)	%		3.4	%		10.8	%		(7.2)	%		26.1	%		4.3	%
Earned premiums		1.4	%		6.4	%		11.2	%		8.1	%		4.0	%		4.6	%

Statutory combined ratio
Reported statutory combined ratio*		94.3	%		104.6	%		102.9	%		106.5	%		105.9	%		110.6	%
Codification		0.0			0.0			0.0			0.0			4.6			(0.2)
Written premium adjustment – statutory only		nm			nm			nm			0.3			0.0			0.0
One-time item		0.0			0.0			1.0			0.0			0.0			(2.0)
Statutory combined ratio (adjusted)		94.3	%		104.6	%		103.9	%		106.8	%		110.5	%		108.4	%
Less catastrophe losses		6.3			9.7			7.3			7.1			5.8			5.4
Statutory combined ratio excluding catastrophe losses (adjusted)		88.0	%		94.9	%		96.6	%		99.7	%		104.7	%		103.0	%

GAAP combined ratio
GAAP combined ratio		94.4	%		105.0	%		103.6	%		107.6	%		112.4	%		110.4	%
One-time item		0.0			0.0			1.1			0.0			0.0			(2.4)
GAAP combined ratio before one-time item		94.4	%		105.0	%		104.7	%		107.6	%		112.4	%		108.0	%

Dollar shown are rounded to the millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.
nm-Not amounts 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.
**Prior to 2001, property casualty written premiums were recognized as they were billed throughout the policy period. Effective January 1, 2001, written premiums have been recognized on an annualized basis at the effective date of the policy. Written premiums for 2000 were reclassified to conform with the 2001 presentation; information was not readily available to reclassify earlier year statutory data. The growth rates in written premiums between 1999 and 2000 are overstated because 1999 premiums are shown on a billed basis.

2006 First-Quarter Supplement


Cincinnati Insurance Group
Quarterly Property Casualty Data - Consolidated

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/06	9/30/06	6/30/06	3/31/06			12/31/05			9/30/05			6/30/05			3/31/05			6/30/06	6/30/05			9/30/06	9/30/05			12/31/06	12/31/05
Premiums
Adjusted written premiums (statutory)				$	794		$	765		$	764		$	781		$	787			$	1,568			$	2,332			$	3,097
Written premium adjustment – statutory only					33			(38)			(3)			10			10				20				17				(21)
Reported written premiums (statutory)*				$	829		$	727		$	761		$	791		$	797			$	1,588			$	2,349			$	3,076
Unearned premiums change					(51)			48			4			(26)			(44)				(70)				(66)				(18)
Earned premiums				$	778		$	775		$	765		$	765		$	753			$	1,518			$	2,283			$	3,058

Statutory combined ratio
Reported statutory combined ratio*					89.6	%		85.8	%		96.6	%		86.6	%		87.3	%			86.9	%			90.1	%			89.0	%
Written premium adjustment – statutory only					nm			nm			nm			nm			nm				nm				nm				nm
One-time item					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
Adjusted statutory combined ratio					89.6	%		85.8	%		96.6	%		86.6	%		87.3	%			86.9	%			90.1	%			89.0	%
Less catastrophe losses					5.0			5.6			8.6			2.0			0.3				1.1				3.6				4.1
Adjusted statutory combined ratio excluding catastrophe losses					84.6	%		80.2	%		88.0	%		84.6	%		87.0	%			85.8	%			86.5	%			84.9	%

Reported commission expense ratio*					18.1	%		20.4	%		20.3	%		19.3	%		16.8	%			18.0	%			18.8	%			19.2	%
Written premium adjustment – statutory only					nm			nm			nm			nm			nm				nm				nm				nm
One-time item					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
Adjusted commission expense ratio					18.1	%		20.4	%		20.3	%		19.3	%		16.8	%			18.0	%			18.8	%			19.2	%

Reported other expense ratio*					10.8	%		11.6	%		10.8	%		10.3	%		9.8	%			10.0	%			10.2	%			10.5	%
Written premium adjustment – statutory only					nm			nm			nm			nm			nm				nm				nm				nm
One-time item					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
Adjusted other expense ratio					10.8	%		11.6	%		10.8	%		10.3	%		9.8	%			10.0	%			10.2	%			10.5	%

Reported statutory expense ratio*					28.9	%		32.0	%		31.1	%		29.6	%		26.6	%			28.0	%			29.0	%			29.7	%
Written premium adjustment – statutory only					nm			nm			nm			nm			nm				nm				nm				nm
One-time item					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
Adjusted statutory expense ratio					28.9	%		32.0	%		31.1	%		29.6	%		26.6	%			28.0	%			29.0	%			29.7	%

GAAP combined ratio
GAAP combined ratio					92.0	%		83.9	%		96.6	%		87.5	%		88.9	%			88.2	%			91.0	%			89.2	%
One-time item					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
GAAP combined ratio before one-time item					92.0	%		83.9	%		96.6	%		87.5	%		88.9	%			88.2	%			91.0	%			89.2	%

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.

2006 First-Quarter Supplement


Cincinnati Insurance Group
Quarterly Property Casualty Data - Commercial Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/06	9/30/06	6/30/06	3/31/06			12/31/05			9/30/05			6/30/05			3/31/05			6/30/06	6/30/05			9/30/06	9/30/05			12/31/06	12/31/05
Premiums
Adjusted written premiums (statutory)				$	635		$	584		$	547		$	557		$	617			$	1,174			$	1,721			$	2,306
Written premium adjustment -- statutory only					33			(36)			(1)			9			12				21				20				(16)
Reported written premiums (statutory)*				$	668		$	548		$	546		$	566		$	629			$	1,195			$	1,741			$	2,290
Unearned premiums change					(86)			28			18			(3)			(78)				(81)				(63)				(36)
Earned premiums				$	582		$	576		$	564		$	563		$	551			$	1,114			$	1,678			$	2,254

Statutory combined ratio
Reported statutory combined ratio*					87.5	%		84.3	%		95.5	%		83.9	%		85.5	%			84.6	%			88.1	%			87.1	%
Written premium adjustment -- statutory only					nm			nm			nm			nm			nm				nm				nm				nm
One-time item					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
Adjusted statutory combined ratio					87.5	%		84.3	%		95.5	%		83.9	%		85.5	%			84.6	%			88.1	%			87.1	%
Less catastrophe losses					5.1			2.4			9.5			0.4			1.1				0.8				3.6				3.4
Adjusted statutory combined ratio excluding catastrophe losses					82.4	%		81.9	%		86.0	%		83.5	%		84.4	%			83.8	%			84.5	%			83.7	%

GAAP combined ratio
GAAP combined ratio					90.5	%		82.1	%		95.2	%		84.8	%		87.5	%			86.1	%			89.2	%			87.4	%
One-time item					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
GAAP combined ratio before one-time item					90.5	%		82.1	%		95.2	%		84.8	%		87.5	%			86.1	%			89.2	%			87.4	%

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.

2006 First-Quarter Supplement


Cincinnati Insurance Group
Quarterly Property Casualty Data - Personal Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/06	9/30/06	6/30/06	3/31/06			12/31/05			9/30/05			6/30/05			3/31/05			6/30/06	6/30/05			9/30/06	9/30/05			12/31/06	12/31/05
Premiums
Adjusted written premiums (statutory)				$	161		$	181		$	217		$	223		$	170			$	393			$	611			$	791
Written premium adjustment -- statutory only					0			(2)			(2)			1			(2)				(1)				(3)				(5)
Reported written premiums (statutory)*				$	161		$	179		$	215		$	224		$	168			$	392			$	608			$	786
Unearned premiums change					35			20			(14)			(22)			34				8				(3)				17
Earned premiums				$	196		$	199		$	201		$	202		$	202			$	404			$	605			$	804

Statutory combined ratio
Reported statutory combined ratio*					98.1	%		90.1	%		99.9	%		93.6	%		94.0	%			93.7	%			95.7	%			94.3	%
Written premium adjustment -- statutory only					nm			nm			nm			nm			nm				nm				nm				nm
One-time item					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
Adjusted statutory combined ratio					98.1	%		90.1	%		99.9	%		93.6	%		94.0	%			93.7	%			95.7	%			94.3	%
Less catastrophe losses					5.0			14.9			6.3			6.2			2.0				2.1				3.5				6.3
Adjusted statutory combined ratio excluding catastrophe losses					93.1	%		75.2	%		93.6	%		87.4	%		96.0	%			91.6	%			92.2	%			88.0	%

GAAP combined ratio
GAAP combined ratio					96.4	%		89.0	%		100.5	%		95.3	%		92.7	%			94.0	%			96.1	%			94.4	%
One-time item					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
GAAP combined ratio before one-time item					96.4	%		89.0	%		100.5	%		95.3	%		92.7	%			94.0	%			96.1	%			94.4	%

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.

2006 First-Quarter Supplement


The Cincinnati Life Insurance Company
GAAP Statements of Income
	For the quarter ended March 31,
		2006		2005		Change	% Change
Revenues:
Premiums earned:
Property casualty	$	-	$	-	$	-	NA
Life		34,874,544		31,516,806		3,357,738	10.65
Accident health		1,733,897		1,653,157		80,740	4.88
Premiums ceded		(10,320,610)		(9,393,292)		(927,318)	(9.87)
Total premiums earned		26,287,831		23,776,671		2,511,160	10.56
Investment income		26,275,186		23,974,477		2,300,709	9.60
Realized investment gains and losses		42,334,256		2,292,697		40,041,559	1,746.48
Other income		746,054		747,522		(1,468)	(0.20)
Total revenues	$	95,643,327	$	50,791,367	$	44,851,960	88.31

Benefits & expenses:
Losses & policy benefits	$	30,127,971	$	34,646,518	$	(4,518,547)	(13.04)
Reinsurance recoveries		71,648		(10,759,906)		10,831,554	100.67
Commissions		8,406,916		8,295,811		111,105	1.34
Other operating expenses		6,142,293		4,538,021		1,604,272	35.35
Interest expense		0		0		0	NA
Taxes, licenses & fees		830,409		1,077,487		(247,078)	(22.93)
Incr deferred acq expense		(4,942,405)		(2,750,195)		(2,192,210)	(79.71)
Other expenses		64		64		0	0.00
Total expenses	$	40,636,896	$	35,047,800	$	5,589,096	15.95

Income before income taxes	$	55,006,431	$	15,743,567	$	39,262,864	249.39

Provision for income taxes:
Current	$	2,133,775	$	3,214,470	$	(1,080,695)	(33.62)
Current capital gains/losses		14,816,990		802,444		14,014,546	1,746.48
Deferred		2,992,000		1,312,071		1,679,929	128.04
Total income taxes	$	19,942,765	$	5,328,985	$	14,613,780	274.23

Net income	$	35,063,666	$	10,414,582	$	24,649,084	236.68

2006 First-Quarter Supplement


The Cincinnati Life Insurance Company
Statutory Statements of Income

	For the three months ended March 31,
	2006		2005		% Change

Net premiums written	$	38,308,469.00	$	49,483,620.30	(22.58)
Net investment income		26,275,186.49		23,974,477.25	9.60
Amortization of interest maintenance reserve		36,581.05		265,492.00	(86.22)
Commissions and expense allowances on reinsurance ceded		2,006,599.64		3,617,551.97	(44.53)
Income from fees associated with Separate Accounts		746,054.15		747,522.27	(0.20)
Total revenues	$	67,372,890.33	$	78,088,663.79	(13.72)

Death benefits and matured endowments		10,440,251.78		7,690,041.33	35.76
Annuity benefits		7,835,973.73		3,068,424.65	155.37
Disability benefits and benefits under accident and health contracts		124,030.06		40,586.01	205.60
Surrender benefits and group conversions		7,382,751.42		5,773,415.14	27.87
Interest and adjustments on deposit-type contract funds		2,851,151.99		2,271,734.68	25.51
Increase in aggregate reserves for life and accident and health contracts		21,550,983.00		37,001,346.01	(41.76)
Payments on supplementary contracts with life contingencies		75,477.45		72,248.67	4.47
Total benefit expenses	$	50,260,619.43	$	55,917,796.49	(10.12)

Commissions		8,307,165.72		8,295,810.81	0.14
General insurance expenses and taxes		8,395,308.93		7,914,597.29	6.07
Increase in loading on deferred and uncollected premiums		(1,353,691.88)		(2,496,227.00)	45.77
Net transfers to or (from) Separate Accounts		0.00		0.00	N/A
Other deductions		63.62		63.81	(0.30)
Total operating expenses	$	15,348,846.39	$	13,714,244.91	11.92

Federal and Foreign Income Taxes Incurred		1,889,192.22		2,987,611.00	(36.77)

Net gain from operations before realized capital gains or (losses)	$	(125,767.70)	$	5,469,011.39	(102.30)

Net realized gains or (losses) net of capital gains tax		27,697,575.51		1,210,681.31	2187.77

Net Income (Statutory)	$	27,571,807.81	$	6,679,692.70	312.77

* 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.

2006 First-Quarter Supplement


The Cincinnati Life Insurance Company
Expenses as a Percentage of Premium

(Dollars in millions)	Three months ended																								Six months ended				Nine months ended				Twelve months ended
	12/31/06			09/30/06			06/30/06			03/31/06			12/31/05			09/30/05			06/30/05			03/31/05			06/30/06	06/30/05			09/30/06	09/30/05			12/31/06	12/31/05
Gross Written Premiums										$	50		$	57		$	66		$	64		$	62			$	126			$	192			$	249
Bank Owned Life Insurance (BOLI) Adjustment											0			0			0			0			0				0				0				0
Adjusted Gross Written Premiums										$	50		$	57		$	66		$	64		$	62			$	126			$	192			$	249

Insurance Expense										$	7		$	8		$	7		$	7		$	7			$	14			$	21			$	29

Expense Ratio											14.5	%		14.4	%		10.3	%		10.7	%		10.9	%			10.8	%			10.8	%			11.7	%
Expense Ratio based on Adjusted Gross Written Premium											14.5	%		14.4	%		10.3	%		10.7	%		10.9	%			10.8	%			10.8	%			11.7	%



(Dollars in millions)	Years ended December 31,
	2005			2004			2003			2002			2001			2000
Gross Written Premiums	$	249		$	230		$	173		$	244		$	122		$	157
Bank Owned Life Insurance (BOLI) Adjustment		0			(10)			0			(34)			0			(20)
Adjusted Gross Written Premiums		249			220			173			210			122			137

Insurance Expense		29			25			25			27			25			20

Expense Ratio		11.7	%		11.1	%		14.8	%		10.9	%		20.6	%		12.9	%
Expense Ratio based on Adjusted Gross Written Premium		11.7	%		11.6	%		14.8	%		12.6	%		20.6	%		14.8	%

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.

2006 First-Quarter Supplement

Cincinnati Financial (CINF) 8-KResults of Operations and Financial Condition