Cincinnati Financial (CINF) 8-K Cincinnati Financial Reports Second-Quarter 2009 Results

Exhibit 99.2

Cincinnati Financial Corporation
Supplemental Financial Data
June 30, 2009
Second Quarter

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

							Standard &
	A.M. Best		Fitch		Moody’s		Poor’s
Cincinnati Financial Corporation
Corporate Debt		a		A		A3	BBB+
The Cincinnati Insurance Companies
Insurer Financial Strength
Property Casualty Group
Standard Market Subsidiaries:		A+		—		A1		A+
The Cincinnati Insurance Company		A+	AA-			A1		A+
The Cincinnati Indemnity Company		A+	AA-			A1		A+
The Cincinnati Casualty Company		A+	AA-			A1		A+
Surplus Lines Subsidiary:
The Cincinnati Specialty Underwriters Insurance Company		A		—		—		—
The Cincinnati Life Insurance Company		A	AA-			—		A+

Ratings are as of July 24, 2009, under continuous review and subject to change and/or affirmation. For the current ratings, select Financial Strength Ratings onwww.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 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
Second Quarter 2009

	Page
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures		3
Consolidated
Quick Reference		4
CFC and Subsidiaries Consolidation — Six Months Ended June 30, 2009		5
CFC and Subsidiaries Consolidation — Three Months Ended June 30, 2009		6
Quarterly Net Income Reconciliation		7
CFC Insurance Subsidiaries — Selected Balance Sheet Data		8
Consolidated Property Casualty Insurance Operations
(Includes Cincinnati Specialty Underwriters Insurance Company (CSU))
Statutory Statements of Income		9
Statutory Quarterly Analysis — Consolidated		10
Statutory Quarterly Analysis — Commercial Lines		11
Statutory Quarterly Analysis — Personal Lines		12
Direct Written Premiums by Line of Business and State		13
Quarterly Property Casualty Data — Commercial Lines of Business		14
Quarterly Property Casualty Data — Personal Lines of Business		15
Quarterly Detailed Loss Analysis		16
Loss and Loss Expense Analysis		17
Reconciliation Data
Quarterly Property Casualty Data — Consolidated		18
Quarterly Property Casualty Data — Commercial Lines		19
Quarterly Property Casualty Data — Personal Lines		20
Life Insurance Operations
Statutory Statements of Income		21

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 may improve its understanding of trends in the underlying business and 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.
•	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.

2009 Second-Quarter Supplement

3

Cincinnati Financial Corporation
Quick Reference - Second Quarter 2009
(all data shown is for the three months ended or as of June 30, 2009)

(Based on reported data — see Pages 18-20 for adjusted data)

				Year over year
	6/30/2009			change %
Revenues:
Commercial lines net written premiums	$	524			(12.2	)
Personal lines net written premiums		190			(0.6	)
Surplus lines net written premiums		9			277.3
Property casualty net written premiums		723			(8.5	)
Commercial lines net earned premiums		556			(5.2	)
Personal lines net earned premiums		172			(1.5	)
Surplus lines net earned premiums		5			nm
Property casualty net earned premiums		733			(3.7	)
Life and accident and health net earned premiums		37			9.9
Investment income		119			(8.4	)
Realized gains on investments		(18	)	nm
Other income		3			(0.3	)
Total revenues		874			(4.7	)
Income:
Operating income	$	(5	)		(107.2	)
Net realized investment gains and losses		(14	)		(117.7	)
Net income		(19	)	nm
Per share (diluted):
Operating income (loss)	$	(0.03	)		(107.1	)
Net realized investment gains and losses		(0.09	)		120.3
Net income		(0.12	)		(131.6	)
Book value		25.49			(12.1	)
Weighted average shares — diluted		162,556,327		nm
Benefits and expenses:
Commercial lines loss and loss expenses	$	442			8.1
Personal lines loss and loss expenses		173			16.2
Surplus lines loss and loss expenses		4			nm
Life and accident and health losses and policy benefits		39			1.8
Underwriting, acquisition and insurance expenses		248			(3.6	)
Operating expenses		4			(19.8	)
Interest expenses		14			10.9
Total expenses		924			8.4
Net income before income taxes		(50	)	nm
Total income tax benefit		(31	)	nm
Ratios:
Commercial lines GAAP combined ratio		110.9	%
Personal lines GAAP combined ratio		133.2
Property casualty GAAP combined ratio		116.6
Commercial lines STAT combined ratio		112.0	%
Personal lines STAT combined ratio		130.5
Property casualty STAT combined ratio		116.6
Balance Sheet:
Fixed maturity investments	$	7,127
Equity securities		2,492
Short-term investments		12
Other invested assets		77
Total invested assets	$	9,708
Loss and loss expense reserves	$	4,233
Total debt		839
Shareholders’ equity		4,144

2009 Second-Quarter Supplement

4

Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Six Months Ended June 30, 2009

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I		CINFIN			C-SUPR		ELIM			Total
Revenues:
Premiums earned:
Property Casualty	$	—		$	1,550		$	—		$	—	$	—		$	—	$	—		$	1,550
Life		—			—			91			—		—			—		—			91
Accident health		—			—			3			—		—			—		—			3
Premiums ceded		—			(85	)		(24	)		—		—			—		—			(109	)
Total earned premium		—			1,465			70			—		—			—		—			1,535
Investment income		20			164			59			—		—			—		—			243
Realized gain on investments		67			(54	)		(32	)		—		(1	)		—		—			(20	)
Other income		7			2			—			4		—			2		(9	)		6
Total revenues	$	94		$	1,577		$	97		$	4	$	(1	)	$	2	$	(9	)	$	1,764
Benefits & expenses:
Losses & policy benefits	$	—		$	1,194		$	100		$	—	$	—		$	—	$	(2	)	$	1,292
Reinsurance recoveries		—			(31	)		(22	)		—		—			—		—			(53	)
Underwriting, acquisition and insurance expenses		—			479			24			—		—			—		(1	)		503
Other operating expenses		13			—			—			2		—			2		(6	)		10
Interest expense		26			—			—			2		—			—		—			28
Total expenses	$	39		$	1,642		$	102		$	4	$	0		$	2	$	(9	)	$	1,780
Income (loss) before income taxes	$	55		$	(65	)	$	(5	)	$	0	$	(1	)	$	0	$	0		$	13
Provision (benefit) for income taxes:
Current operating income	$	(11	)	$	(33	)	$	(4	)	$	—	$	—		$	—	$	—		$	(40	)
Capital gains/losses		23			(18	)		(9	)		—		—			—		—			(4	)
Deferred		3			4			12			—		—			—		—			21
Total provision (benefit) for income taxes	$	15		$	(47	)	$	(1	)	$	0	$	0		$	0	$	0		$	(23	)
Operating income (loss)	$	(5	)	$	18		$	19		$	0	$	0		$	0	$	0		$	32
Net income (loss) — current year	$	40		$	(18	)	$	(4	)	$	0	$	(1	)	$	0	$	0		$	17
Net income (loss) — prior year	$	(27	)	$	43		$	4		$	1	$	0		$	0	$	0		$	21

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

2009 Second-Quarter Supplement

5

Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Three Months Ended June 30, 2009

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I		CINFIN		C-SUPR		ELIM			Total
Revenues:
Premiums earned:
Property Casualty	$	—		$	776		$	—		$	—	$	—	$	—	$	—		$	776
Life		—			—			47			—		—		—		—			47
Accident health		—			—			2			—		—		—		—			2
Premiums ceded		—			(43	)		(12	)		—		—		—		—			(55	)
Total earned premium		—			733			37			—		—		—		—			770
Investment income		11			79			29			—		—		—		—			119
Realized gain on investments		(14	)		1			(5	)		—		—		—		—			(18	)
Other income		4			1			—			2		—		1		(5	)		3
Total revenues	$	1		$	814		$	61		$	2	$	0	$	1	$	(5	)	$	874
Benefits & expenses:
Losses & policy benefits	$	—		$	663		$	49		$	—	$	—	$	—	$	(1	)	$	711
Reinsurance recoveries		—			(43	)		(10	)		—		—		—		—			(53	)
Underwriting, acquisition and insurance expenses		—			235			13			—		—		—		—			248
Other operating expenses		6			—			—			1		—		1		(4	)		4
Interest expense		13			—			—			1		—		—		—			14
Total expenses	$	19		$	855		$	52		$	2	$	0	$	1	$	(5	)	$	924
Income (loss) before income taxes	$	(18	)	$	(41	)	$	9		$	0	$	0	$	0	$	0		$	(50	)
Provision (benefit) for income taxes:
Current operating income	$	(10	)	$	(33	)	$	(1	)	$	—	$	—	$	—	$	—		$	(44	)
Capital gains/losses		(5	)		—			—			—		—		—		—			(5	)
Deferred		7			6			5			—		—		—		—			18
Total provision (benefit) for income taxes	$	(8	)	$	(27	)	$	4		$	0		0	$	0	$	0		$	(31	)
Operating income (loss)	$	0		$	(15	)	$	10		$	0	$	0	$	0	$	0		$	(5	)
Net income (loss) — current year	$	(10	)	$	(14	)	$	5		$	0	$	0	$	0	$	0		$	(19	)
Net income — prior year	$	13		$	48		$	2		$	0	$	0	$	0	$	0		$	63

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

2009 Second-Quarter Supplement

6

Cincinnati Financial Corporation
Quarterly Net Income Reconciliation

						Three months ended														Six months ended						Nine months ended				Twelve months ended
(Dollars in millions except per share data)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08		9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Net income (loss)			$	(19	)	$	35		$	161	$	247		$	63		$	(42	)	$	17		$	21			$	268			$	429
Net realized investment gains and losses				(14	)		(2	)		69		173			(6	)		(151	)		(15	)		(157	)			16				85
Operating income (loss)				(5	)		37			92		74			69			109			32			178				252				344
Less catastrophe losses				(77	)		(34	)		10		(41	)		(74	)		(28	)		(111	)		(101	)			(142	)			(132	)
Operating income before catastrophe losses			$	72		$	71		$	82	$	115		$	143		$	137		$	143		$	279			$	394			$	476
Diluted per share data
Net income (loss)			$	(0.12	)	$	0.22		$	0.99	$	1.50		$	0.38		$	(0.26	)	$	0.10		$	0.13			$	1.64			$	2.62
Net realized investment gains and losses				(0.09	)		(0.01	)		0.42		1.05			(0.04	)		(0.92	)		(0.10	)		(0.95	)			0.10				0.52
Operating income (loss)				(0.03	)		0.23			0.57		0.45			0.42			0.66			0.20			1.08				1.54				2.10
Less catastrophe losses				(0.47	)		(0.21	)		0.06		(0.25	)		(0.45	)		(0.17	)		(0.68	)		(0.62	)			(0.87	)			(0.81	)
Operating income before catastrophe losses			$	0.44		$	0.44		$	0.51	$	0.70		$	0.87		$	0.83		$	0.88		$	1.70			$	2.41			$	2.91

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.

2009 Second-Quarter Supplement

7

Cincinnati Financial Corporation Insurance Subsidiaries
Selected Balance Sheet Data

(Dollars in millions)	12/31/2009		9/30/2009		6/30/2009			3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Cincinnati Insurance Consolidated (including CSU)
Fixed maturities (fair value)					$	5,169		$	4,804		$	4,309		$	4,183		$	4,304		$	4,351
Equities (fair value)						2,737			1,986			2,432			3,210			3,537			4,226
Short-term investments (fair value)						11			13			19			162			—			51
Fixed maturities — pretax net unrealized gain (loss)						25			(36	)		(108	)		(132	)		(33	)		39
Equities — pretax net unrealized gain						487			347			627			1,012			1,227			1,831
Loss and loss expense reserves — STAT						3,674			3,555			3,494			3,507			3,534			3,448
Equity GAAP						3,795			3,512			3,667			3,947			4,011			4,498
Surplus — STAT						3,241			3,105			3,360			3,687			3,650			4,027
The Cincinnati Life Insurance Company
Fixed maturities (fair value)					$	1,694		$	1,534		$	1,467		$	1,483		$	1,551		$	1,534
Equities (fair value)						103			89			122			200			265			307
Short-term investments (fair value)						1			—			—			—			—			—
Fixed maturities — pretax net unrealized gain (loss)						(43	)		(94	)		(115	)		(79	)		(35	)		—
Equities — pretax net unrealized gain (loss)						(8	)		(27	)		(7	)		61			92			127
Equity — GAAP						563			454			471			530			617			661
Surplus — STAT						270			254			290			371			420			453
		12/31/2007		9/30/2007		6/30/2007			3/31/2007			12/31/2006			9/30/2006			6/30/2006			3/31/2006
Cincinnati Insurance Consolidated (including CSU)
Fixed maturities (fair value)	$	4,295	$	4,366	$	4,367		$	4,362		$	4,296		$	4,258		$	4,160		$	4,189
Equities (fair value)		4,595		5,201		5,411			5,472			5,494			5,134			4,827			4,946
Short-term investments (fair value)		50		19		72			3			92			—			—			126
Fixed maturities — pretax net unrealized gain (loss)		58		23		(30	)		44			47			51			(55	)		2
Equities — pretax net unrealized gain		2,077		2,657		2,917			3,017			3,166			2,859			2,621			2,758
Loss and loss expense reserves — STAT		3,398		3,461		3,374			3,373			3,356			3,314			3,237			3,169
Equity GAAP		4,784		5,282		5,404			5,272			5,261			5,073			4,702			4,730
Surplus — STAT		4,307		4,782		4,937			4,741			4,723			4,607			4,342			4,334
The Cincinnati Life Insurance Company
Fixed maturities (fair value)	$	1,465	$	1,475	$	1,415		$	1,384		$	1,381		$	1,399		$	1,344		$	1,338
Equities (fair value)		371		459		478			539			532			494			458			470
Short-term investments (fair value)		51		18		29			16			3			—			—			20
Fixed maturities — pretax net unrealized gain (loss)		6		4		(4	)		20			15			17			(17	)		6
Equities — pretax net unrealized gain (loss)		162		225		254			305			307			271			238			256
Equity — GAAP		685		724		730			739			719			688			652			666
Surplus — STAT		477		485		491			483			479			461			459			470

2009 Second-Quarter Supplement

8

Consolidated Cincinnati Insurance Companies
Statutory Statements of Income

	For the Three Months Ended June 30,												For the Six Months Ended June 30,
(Dollars in millions)	2009			2008			Change			% Change			2009			2008			Change			% Change
Underwriting income
Net premiums written	$	723		$	790		$	(67	)		(8.5	)	$	1,501		$	1,566		$	(65	)		(4.1	)
Unearned premiums increase		(10	)		29			(39	)	nm				36			54			(18	)		(33.8	)
Earned premiums	$	733		$	761		$	(28	)		(3.7	)	$	1,465		$	1,512		$	(47	)		(3.1	)
Losses incurred	$	524		$	479		$	45			9.5		$	982		$	897		$	85			9.5
Allocated loss expenses incurred		49			33			16			49.7			85			70			15			21.6
Unallocated loss expenses incurred		46			46			—			(0.1	)		96			92			4			4.2
Other underwriting expenses incurred		226			226			—			0.1			462			459			3			0.7
Workers compensation dividend incurred		6			(4	)		10		nm				10			1			9			582.8
Total underwriting deductions	$	851		$	780		$	71			9.1		$	1,635		$	1,519		$	116			7.6
Net underwriting loss	$	(118	)	$	(20	)	$	(98	)		505.8		$	(170	)	$	(7	)	$	(163	)	nm
Investment income
Gross investment income earned	$	81		$	90		$	(9	)		(10.1	)	$	167		$	185		$	(18	)		(9.9	)
Net investment income earned		80			89			(9	)		(10.1	)		165			183			(18	)		(10.0	)
Net realized capital gains		(6	)		(4	)		(2	)		62.8			(39	)		(94	)		55			(58.5	)
Net investment gains (excl. subs)	$	74		$	85		$	(11	)		(13.1	)	$	125		$	88		$	37			41.8
Dividend from subsidiary		—			—			—		nm				—			—			—		nm
Net investment gains (net of tax)	$	74		$	85		$	(11	)		(13.1	)	$	125		$	88		$	37			41.8
Other income	$	1		$	1		$	—			51.9		$	2		$	1		$	1			104.1
Net income before federal income taxes	$	(43	)	$	67		$	(110	)	nm			$	(42	)	$	82		$	(124	)	nm
Federal and foreign income taxes incurred	$	(29	)	$	16		$	(46	)	nm			$	(30	)	$	84		$	(115	)	nm
Net income (loss) (statutory)	$	(14	)	$	50		$	(64	)	nm			$	(12	)	$	(2	)	$	(10	)		468.9

*	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.

2009 Second-Quarter Supplement

9

Consolidated Cincinnati Insurance Companies — All Lines
Statutory Quarterly Analysis
(Based on reported data — see Page 18 for adjusted data)

						Three months ended															Six months ended						Nine months ended					Twelve months ended
(Dollars in millions)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08				12/31/09	12/31/08
Net premiums written			$	723		$	778		$	717		$	727		$	790		$	776		$	1,501		$	1,566			$	2,292				$	3,010
Net premiums earned			$	733		$	732		$	747		$	751		$	761		$	751		$	1,465		$	1,512			$	2,263				$	3,010
Losses paid			$	412		$	401		$	383		$	467		$	396		$	383		$	813		$	778			$	1,245				$	1,629
Loss reserve change				112			56			(1	)		(11	)		83			35			169			119				108					107
Total losses incurred			$	524		$	457		$	382		$	456		$	479		$	418		$	982		$	897			$	1,353				$	1,736
Allocated loss expense paid				42			30			39			35			32			25			71			58				93					131
Allocated loss expense reserve change				7			6			(12	)		(16	)		1			12			14			12				(4	)				(16	)
Total allocated loss expense incurred			$	49		$	36		$	27		$	19		$	33		$	37		$	85		$	70			$	89				$	115
Unallocated loss expense paid				42			48			62			47			43			43			91			86				133					195
Unallocated loss expense reserve change				4			2			3			1			3			3			5			6				7					10
Total unallocated loss expense incurred			$	46		$	50		$	65		$	48		$	46		$	46		$	96		$	92			$	140				$	205
Underwriting expenses incurred				232			240			264			241			223			238			472			460				701					971
Underwriting (loss) profit			$	(118	)	$	(51	)	$	9		$	(13	)	$	(20	)	$	12		$	(170	)	$	(7	)		$	(20	)			$	(17	)
Ratio Data
Loss ratio				71.6	%		62.5	%		51.2	%		60.8	%		63.0	%		55.6	%		67.0	%		59.3	%			59.8	%				57.7	%
Allocated loss expense ratio				6.7			4.9			3.5			2.5			4.3			5.0			5.8			4.6				3.9					3.8
Unallocated loss expense ratio				6.3			6.8			8.7			6.4			6.1			6.1			6.6			6.1				6.2					6.8
Net underwriting expense ratio				32.0			30.9			36.8			33.1			28.1			30.6			31.4			29.3				30.6					32.1
Statutory combined ratio				116.6	%		105.1	%		100.2	%		102.8	%		101.5	%		97.3	%		110.8	%		99.3	%			100.5	%				100.4	%
Statutory combined ratio excluding catastrophes				100.5	%		97.9	%		102.3	%		94.4	%		86.6	%		91.5	%		99.2	%		89.0	%			90.8	%				93.6	%
Loss Detail
New losses greater than $4,000,000			$	20		$	9		$	10		$	10		$	18		$	—		$	30		$	26			$	36				$	46
New losses $2,000,000-$4,000,000				21			17			19			17			25			22			39			39				56					75
New losses $1,000,000-$2,000,000				18			11			22			33			17			22			28			39				72					94
New losses $750,000-$1,000,000				7			11			12			14			13			9			19			21				35					48
New losses $500,000-$750,000				9			16			16			16			13			11			24			24				40					56
New losses $250,000-$500,000				31			35			35			33			27			29			66			57				90					124
Case reserve development above $250,000				70			56			82			59			54			49			125			103				162					245
Large losses subtotal			$	176		$	155		$	196		$	182		$	167		$	142		$	331		$	309			$	491				$	688
IBNR incurred				39			18			(16	)		(6	)		(6	)		6			57			—				(6	)	��			(22	)
Catastrophe losses incurred				118			53			(16	)		63			113			43			171			156				219					203
Remaining incurred				191			231			218			217			205			227			423			432				649					867
Total losses incurred			$	524		$	457		$	382		$	456		$	479		$	418		$	982		$	897			$	1,353				$	1,736
Loss Ratio
New losses greater than $4,000,000				2.8	%		1.3	%		1.3	%		1.3	%		2.4	%		0.0	%		2.0	%		1.7	%			1.6	%				1.5	%
New losses $2,000,000-$4,000,000				2.9			2.4			2.5			2.2			3.3			2.9			2.6			2.6				2.5					2.5
New losses $1,000,000-$2,000,000				2.4			1.4			2.9			4.4			2.2			2.9			1.9			2.6				3.0					3.1
New losses $750,000-$1,000,000				1.0			1.5			1.6			1.9			1.7			1.1			1.3			1.4				1.6					1.6
New losses $500,000-$750,000				1.2			2.1			2.2			2.1			1.7			1.5			1.7			1.6				1.8					1.9
New losses $250,000-$500,000				4.2			4.8			4.6			4.4			3.6			3.9			4.5			3.7				4.0					4.1
Case reserve development above $250,000				9.6			7.6			11.0			7.9			7.1			6.5			8.5			6.9				7.2					8.1
Large losses subtotal				24.1	%		21.1	%		26.1	%		24.2	%		22.0	%		18.8	%		22.5	%		20.5	%			21.7	%				22.8	%
IBNR incurred				5.3			2.5			(2.1	)		(0.8	)		(0.9	)		0.8			3.9			0.0				(0.3	)				(0.7	)
Total catastrophe losses incurred				16.1			7.2			(2.1	)		8.4			14.9			5.7			11.6			10.3				9.7					6.8
Remaining incurred				26.1			31.7			29.3			29.0			27.0			30.2			29.0			28.5				28.7					28.8
Total loss ratio				71.6	%		62.5	%		51.2	%		60.8	%		63.0	%		55.5	%		67.0	%		59.3	%			59.8	%				57.7	%
Loss Claim Count
New losses greater than $4,000,000				4			2			2			2			5			2			6			7				9					11
New losses $2,000,000-$4,000,000				8			7			7			6			8			5			15			13				19					26
New losses $1,000,000-$2,000,000				14			9			17			27			13			19			23			32				59					76
New losses $750,000-$1,000,000				8			13			14			17			15			10			21			25				42					56
New losses $500,000-$750,000				14			28			28			28			23			21			42			44				72					100
New losses $250,000-$500,000				92			108			105			100			84			87			200			171				271					376
Case reserve development above $250,000				108			89			146			102			84			81			197			165				267					413
Large losses total				248			256			319			282			232			225			504			457				739					1,058

*	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.

2009 Second-Quarter Supplement

10

Consolidated Cincinnati Insurance Companies — Commercial Lines

Statutory Quarterly Analysis

(Based on reported data — see Page 19 for adjusted data)

	Three months ended																				Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Net premiums written			$	524		$	626		$	552		$	538		$	597		$	625		$	1,149		$	1,222			$	1,759			$	2,311
Net premiums earned			$	556		$	557		$	573		$	582		$	586		$	574		$	1,112		$	1,161			$	1,743			$	2,316
Losses paid			$	275		$	271		$	262		$	326		$	280		$	266		$	546		$	546			$	871			$	1,133
Loss reserve change				92			50			26			(3	)		67			32			142			100				97				123
Total losses incurred			$	367		$	321		$	288		$	323		$	347		$	298		$	688		$	646			$	968			$	1,256
Allocated loss expense paid				39			26			35			31			28			22			64			50				82				116
Allocated loss expense reserve change				5			6			(13	)		(15	)		1			12			11			13				(3	)			(16	)
Total allocated loss expense incurred			$	44		$	32		$	22		$	16		$	29		$	34		$	75		$	63			$	79			$	100
Unallocated loss expense paid				28			34			42			34			31			30			62			61				95				137
Unallocated loss expense reserve change				3			2			7			(1	)		1			3			5			4				4				10
Total unallocated loss expense incurred			$	31		$	36		$	49		$	33		$	32		$	33		$	67		$	65			$	99			$	147
Underwriting expenses incurred				170			183			204			180			166			186			353			352				532				742
Underwriting (loss) profit			$	(56	)	$	(15	)	$	10		$	30		$	12		$	23		$	(71	)	$	35			$	65			$	71
Ratio Data
Loss ratio				66.0	%		57.6	%		50.3	%		55.4	%		59.2	%		52.0	%		61.8	%		55.6	%			55.5	%			54.2	%
Allocated loss expense ratio				7.8			5.8			3.8			2.7			5.0			5.9			6.8			5.4				4.5				4.3
Unallocated loss expense ratio				5.7			6.4			8.4			5.7			5.5			5.7			6.0			5.7				5.7				6.4
Net underwriting expense ratio				32.5			29.2			36.5			33.5			27.8			29.7			30.8			28.8				30.2				31.7
Statutory combined ratio				112.0	%		99.0	%		99.0	%		97.3	%		97.5	%		93.3	%		105.4	%		95.5	%			95.9	%			96.6	%
Statutory combined ratio excluding catastrophes				101.7	%		96.5	%		100.5	%		93.3	%		86.2	%		89.4	%		99.0	%		87.8	%			89.5	%			92.2	%
Loss Detail
New losses greater than $4,000,000			$	21		$	9		$	10		$	5		$	18		$	—		$	30		$	26			$	31			$	41
New losses $2,000,000-$4,000,000				22			17			19			17			25			22			38			40				56				75
New losses $1,000,000-$2,000,000				15			9			18			26			15			18			24			33				60				78
New losses $750,000-$1,000,000				7			9			10			12			11			8			16			19				31				41
New losses $500,000-$750,000				7			12			11			14			12			9			19			20				34				45
New losses $250,000-$500,000				24			26			28			25			22			23			51			45				70				98
Case reserve development above $250,000				63			51			76			57			51			44			114			96				153				229
Large losses subtotal			$	159		$	133		$	172		$	156		$	154		$	124		$	292		$	279			$	435			$	607
IBNR incurred				38			18			(12	)		(7	)		(8	)		6			56			(2	)			(10	)			(22	)
Catastrophe losses incurred				57			14			(9	)		23			66			22			71			89				112				103
Remaining incurred				113			156			137			151			135			146			269			280				431				568
Total losses incurred			$	367		$	321		$	288		$	323		$	347		$	298		$	688		$	646			$	968			$	1,256
Loss Ratio
New losses greater than $4,000,000				3.7	%		1.7	%		1.8	%		0.9	%		3.1	%		0.0	%		2.7	%		2.3	%			1.8	%			1.8	%
New losses $2,000,000-$4,000,000				3.9			3.1			3.2			2.9			4.3			3.9			3.5			3.4				3.2				3.2
New losses $1,000,000-$2,000,000				2.6			1.6			3.1			4.5			2.5			3.2			2.1			2.9				3.4				3.4
New losses $750,000-$1,000,000				1.3			1.6			1.7			2.1			1.9			1.3			1.5			1.6				1.8				1.8
New losses $500,000-$750,000				1.3			2.1			2.0			2.3			2.0			1.5			1.7			1.7				1.9				2.0
New losses $250,000-$500,000				4.4			4.7			4.9			4.3			3.8			4.0			4.5			3.9				4.0				4.2
Case reserve development above $250,000				11.4			9.1			13.2			9.8			8.7			7.8			10.3			8.3				8.8				9.9
Large losses subtotal				28.6	%		23.9	%		29.9	%		26.8	%		26.3	%		21.7	%		26.3	%		24.0	%			24.9	%			26.3	%
IBNR incurred				6.7			3.3			(2.1	)		(1.3	)		(1.4	)		1.0			5.0			(0.2	)			(0.6	)			(0.9	)
Total catastrophe losses incurred				10.3			2.5			(1.5	)		4.0			11.3			3.9			6.4			7.7				6.4				4.5
Remaining incurred				20.4			27.9			24.0			25.9			23.0			25.4			24.1			24.2				24.8				24.3
Total loss ratio				66.0	%		57.6	%		50.3	%		55.4	%		59.2	%		52.0	%		61.8	%		55.7	%			55.5	%			54.2	%
Loss Claim Count
New losses greater than $4,000,000				4			2			2			1			4			2			6			4				7				9
New losses $2,000,000-$4,000,000				8			7			7			6			9			5			15			14				20				27
New losses $1,000,000-$2,000,000				11			8			14			21			12			16			19			22				49				63
New losses $750,000-$1,000,000				8			10			11			15			13			9			18			21				37				48
New losses $500,000-$750,000				12			21			19			24			21			16			33			40				61				80
New losses $250,000-$500,000				72			81			85			74			67			68			153			166				209				294
Case reserve development above $250,000				93			77			129			95			76			74			170			206				245				374
Large losses total				208			206			267			236			202			190			414			473				628				895

*	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.

2009 Second-Quarter Supplement

11

Consolidated Cincinnati Insurance Companies — Personal Lines

Statutory Quarterly Analysis

(Based on reported data — see Page 20 for adjusted data)

	Three months ended																				Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Net premiums written			$	190		$	145		$	160		$	184		$	191		$	150		$	334		$	341			$	525			$	685
Net premiums earned			$	172		$	171		$	171		$	167		$	174		$	177		$	343		$	351			$	518			$	689
Losses paid			$	137		$	130		$	123		$	141		$	116		$	116		$	267		$	232			$	373			$	496
Loss reserve change				18			4			(31	)		(8	)		16			3			22			19				11				(20	)
Total losses incurred			$	155		$	134		$	92		$	133		$	132		$	119		$	289		$	251			$	384			$	476
Allocated loss expense paid				4			3			4			4			4			3			7			7				11				15
Allocated loss expense reserve change				—			—			1			(1	)		(1	)		—			—			—				(1	)			(1	)
Total allocated loss expense incurred			$	4		$	3		$	5		$	3		$	3		$	3		$	7		$	7			$	10			$	14
Unallocated loss expense paid				14			15			19			13			13			13			28			25				38				57
Unallocated loss expense reserve change				1			—			(3	)		1			1			1			—			2				3				1
Total unallocated loss expense incurred			$	15		$	15		$	16		$	14		$	14		$	14		$	28		$	27			$	41			$	58
Underwriting expenses incurred				56			51			58			56			55			51			108			106				162				224
Underwriting loss			$	(58	)	$	(32	)	$	—		$	(39	)	$	(30	)	$	(10	)	$	(89	)	$	(40	)		$	(79	)		$	(83	)
Ratio Data
Loss ratio				90.1	%		78.3	%		53.6	%		79.7	%		75.6	%		67.4	%		84.2	%		71.5	%			74.1	%			69.0	%
Allocated loss expense ratio				2.4			1.9			2.7			1.8			1.9			1.9			2.2			1.9				1.9				2.1
Unallocated loss expense ratio				8.2			8.3			9.6			8.7			7.9			7.4			8.3			7.6				8.0				8.3
Net underwriting expense ratio				29.8			35.4			36.2			30.4			28.9			34.1			32.1			31.2				30.9				32.2
Statutory combined ratio				130.5	%		123.9	%		102.1	%		120.6	%		114.3	%		110.8	%		126.8	%		112.2	%			114.9	%			111.6	%
Statutory combined ratio excluding catastrophes				95.1	%		101.3	%		106.2	%		96.8	%		87.3	%		99.2	%		97.8	%		92.9	%			94.2	%			97.1	%
Loss Detail
New losses greater than $4,000,000			$	—		$	—		$	—		$	5		$	—		$	—		$	—		$	—			$	5			$	5
New losses $2,000,000-$4,000,000				—			—			—			—			—			—			—			—				—				—
New losses $1,000,000-$2,000,000				3			1			4			6			2			4			5			5				12				16
New losses $750,000-$1,000,000				—			2			3			2			2			1			2			3				4				7
New losses $500,000-$750,000				1			4			5			2			1			3			5			4				6				11
New losses $250,000-$500,000				7			9			7			8			5			6			15			12				20				26
Case reserve development above $250,000				7			5			6			2			3			4			12			7				9				16
Large losses subtotal			$	18		$	21		$	25		$	25		$	13		$	18		$	39		$	31			$	56			$	81
IBNR incurred				—			(1	)		(4	)		2			2			—			(1	)		2				4				—
Catastrophe losses incurred				61			39			(7	)		40			47			21			100			67				107				100
Remaining incurred				76			75			78			66			70			80			151			151				217				295
Total losses incurred			$	155		$	134		$	92		$	133		$	132		$	119		$	289		$	251			$	384			$	476
Loss Ratio
New losses greater than $4,000,000				0.0	%		0.0	%		0.0	%		3.0	%		0.0	%		0.0	%		0.0	%		0.0	%			1.0	%			0.7	%
New losses $2,000,000-$4,000,000				0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0				0.0				0.0
New losses $1,000,000-$2,000,000				1.9			0.8			2.4			3.8			1.1			2.1			1.4			1.6				2.3				2.3
New losses $750,000-$1,000,000				0.0			1.4			1.5			1.0			1.1			0.4			0.7			0.8				0.8				1.0
New losses $500,000-$750,000				0.8			2.2			2.9			1.3			0.7			1.5			1.5			1.1				1.2				1.6
New losses $250,000-$500,000				4.0			5.0			3.9			4.8			3.0			3.6			4.5			3.3				3.8				3.8
Case reserve development above $250,000				3.7			3.0			3.8			1.4			1.5			2.5			3.3			1.9				1.7				2.3
Large losses subtotal				10.4	%		12.4	%		14.5	%		15.3	%		7.5	%		10.0	%		11.4	%		8.7	%			10.8	%			11.7	%
IBNR incurred				0.1			(0.6	)		(2.3	)		1.0			0.9			0.2			(0.3	)		0.6				0.7				0.0
Total catastrophe losses incurred				35.4			22.6			(4.1	)		23.8			27.0			11.6			29.0			19.3				20.7				14.5
Remaining incurred				44.2			43.9			45.5			39.6			40.2			45.6			44.1			42.9				41.9				42.8
Total loss ratio				90.1	%		78.3	%		53.6	%		79.7	%		75.6	%		67.4	%		84.2	%		71.5	%			74.1	%			69.0	%
Loss Claim Count
New losses greater than $4,000,000				—			—			—			1			—			—			—			—				1				—
New losses $2,000,000-$4,000,000				—			—			—			—			—			—			—			—				—				3
New losses $1,000,000-$2,000,000				3			1			3			6			1			3			4			4				10				7
New losses $750,000-$1,000,000				—			3			3			2			2			1			3			6				5				14
New losses $500,000-$750,000				2			7			9			4			2			5			9			16				11				51
New losses $250,000-$500,000				20			27			20			26			17			19			47			47				62				28
Case reserve development above $250,000				15			12			17			7			8			7			27			29				22				79
Large losses total				40			50			52			46			30			35			90			102				111				182

*	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.

2009 Second-Quarter Supplement

12

Consolidated Cincinnati Insurance Companies

Agency Direct Written Premiums by Risk State by Line of Business for the Six Months Ended June 30, 2009

	Standard Market																				Surplus Lines						Standard Market						*Consolidated
	Commercial														Personal						Commercial		Consolidated				Commercial			Personal			Total
(Dollars in millions)	Comm						Workers’		Specialty		Surety &		Mach. &		Pers		Home		Other		Casualty		2009		2008		Change			Change			Change
Risk State	Casualty		Comm Prop		Comm Auto		Comp		Packages		Exec Risk		Equip		Auto		Owner		Personal		& Prop		Total		Total		%			%			%
AL	$	9.2	$	8.5	$	3.8	$	0.4	$	4.1	$	1.2	$	0.3	$	8.1	$	12.4	$	2.7	$	0.4	$	51.1	$	51.9		(5.2	)		1.3			(1.7	)
AZ		5.6		3.3		4.7		0.6		0.4		0.4		0.3		0.3		0.3		0.1		0.2		16.5		16.9		(7.3	)		397.0			(2.3	)
AR		4.5		5.1		3.3		2.3		2.1		0.9		0.2		1.4		1.5		0.5		0.3		21.9		21.9		(2.4	)		5.0			0.0
CO		—		0.2		0.1		0.3		—		0.1		—		—		0.1		—		—		0.7		0.9		(13.4	)		(8.5	)		(12.9	)
DE		0.6		0.5		0.5		1.2		0.1		0.1		—		—		—		—		—		3.1		2.6		19.3			(61.4	)		19.3
FL		11.9		11.8		5.0		0.6		1.0		1.1		0.5		5.6		9.0		1.6		—		48.1		58.2		(21.3	)		(8.0	)		(17.3	)
GA		13.4		10.6		9.6		7.5		3.8		3.5		0.5		15.1		13.8		4.1		1.4		83.3		83.1		(2.6	)		1.6			0.2
ID		4.4		2.2		2.8		0.1		0.5		0.6		0.1		0.1		—		—		0.1		11.0		12.1		(10.2	)	nm				(8.6	)
IL		32.5		22.0		15.7		27.3		6.5		3.8		1.5		11.8		9.1		3.3		1.8		135.4		146.8		(10.3	)		1.5			(7.8	)
IN		22.4		19.0		12.7		14.5		4.3		3.2		1.4		12.9		11.9		3.6		2.3		108.1		112.1		(6.0	)		(1.8	)		(3.7	)
IA		10.7		7.1		5.0		12.6		2.2		1.4		0.7		1.6		1.6		0.9		0.2		44.0		43.8		1.0			(8.0	)		0.5
KS		4.1		4.1		2.3		4.7		1.6		1.0		0.2		2.0		2.5		0.6		0.1		23.2		22.9		2.3			(4.9	)		1.2
KY		11.1		10.8		6.7		2.0		2.9		1.8		0.4		10.0		7.6		2.2		0.7		56.2		55.0		0.0			2.3			2.1
MD		6.9		3.2		5.3		4.8		0.6		0.8		0.2		0.1		0.8		0.3		0.3		23.2		23.9		(5.3	)		20.8			(2.8	)
MI		15.3		11.0		7.0		7.9		5.8		3.1		0.9		5.6		6.5		1.6		0.9		65.6		67.1		(4.3	)		(0.3	)		(2.2	)
MN		11.1		8.2		4.8		3.9		1.6		1.1		0.6		3.2		2.8		1.6		0.6		39.5		40.9		(6.8	)		4.5			(3.3	)
MO		11.0		10.2		6.4		7.7		2.8		1.5		0.5		1.5		2.2		0.5		0.6		44.9		46.2		(5.6	)		12.7			(2.8	)
MT		7.3		3.5		3.6		0.1		0.5		0.2		0.2		0.4		0.4		0.1		0.2		16.5		17.0		(7.9	)		196.1			(3.1	)
NE		3.2		2.8		2.0		3.8		0.8		0.5		0.2		0.4		0.5		0.2		0.1		14.5		14.7		(2.1	)		(1.0	)		(1.2	)
NH		1.4		0.9		0.7		1.3		0.4		0.2		0.1		0.3		0.3		0.2		0.1		5.8		6.1		(8.7	)		(2.2	)		(5.9	)
NM		1.3		0.5		0.8		0.3		0.1		0.3		—		—		—		—		0.1		3.3		1.8		80.1		nm				84.6
NY		17.6		4.8		6.3		1.4		0.7		1.3		0.3		—		—		—		0.2		32.5		29.0		11.5			(9.1	)		12.2
NC		17.2		12.5		10.3		13.3		6.7		3.9		0.8		1.9		2.0		1.6		0.8		71.0		77.8		(13.9	)		102.9			(8.8	)
ND		3.0		1.7		1.4		—		0.4		0.4		0.1		0.2		0.2		0.1		—		7.5		7.6		(2.7	)		4.9			(1.6	)
OH		76.2		46.9		31.1		—		9.5		12.0		2.5		58.6		40.8		15.2		2.4		295.0		309.8		(4.8	)		(6.2	)		(4.9	)
PA		24.4		15.0		15.2		27.3		4.6		2.7		0.9		3.5		2.7		1.7		0.8		98.7		105.0		(6.9	)		(3.6	)		(6.0	)
SC		5.7		3.7		3.1		3.0		1.3		1.1		0.2		0.1		0.1		0.1		0.2		18.5		21.1		(14.3	)		127.5			(12.3	)
SD		2.2		1.3		1.0		2.6		0.3		0.2		0.1		—		—		—		0.1		7.8		9.6		(19.5	)		5.0			(18.7	)
TN		12.2		9.6		7.3		5.5		4.9		2.0		0.6		4.2		4.4		1.6		0.6		52.9		55.2		(6.6	)		1.1			(4.2	)
TX		1.5		2.3		0.8		1.0		0.1		0.1		0.2		—		—		0.1		0.1		6.3		3.1		96.7			(95.5	)		100.1
UT		5.6		2.6		3.1		—		0.3		1.1		0.2		0.4		0.2		—		0.6		14.1		13.2		(1.4	)	nm				7.9
VT		2.5		2.0		1.5		2.8		0.6		0.4		0.1		0.3		0.4		0.1		0.1		10.9		11.6		(7.3	)		(5.6	)		(5.9	)
VA		16.3		12.1		10.1		9.3		2.5		3.3		0.6		4.3		3.6		1.4		0.6		64.0		69.4		(9.5	)		(2.6	)		(7.8	)
WA		0.8		0.4		0.5		—		—		0.1		—		—		—		—		—		1.8		0.7		151.4		nm				156.1
WV		3.4		2.3		2.2		0.4		1.3		0.5		0.2		—		0.3		0.1		0.4		11.0		11.2		(5.8	)		(7.8	)		(2.1	)
WI		14.3		9.0		6.6		16.0		2.1		1.3		0.8		4.2		3.3		1.6		0.6		59.7		60.6		(1.1	)		(5.3	)		(1.2	)
All Other		1.8		1.5		1.3		2.2		—		0.8		0.1		—		—		—		—		7.8		7.0		12.6			(38.5	)		12.3
Total	$	392.7	$	273.0	$	204.6	$	188.6	$	77.3	$	57.7	$	16.6	$	158.3	$	141.4	$	47.7	$	17.9	$	1,575.5	$	1,637.9		(5.7	)		(1.0	)		(3.8	)
Other Direct		—		0.8		—		1.9		—		—		—		—		1.6		—		—		4.4		7.3		(52.6	)		10.9			(40.0	)
Total Direct	$	392.7	$	273.8	$	204.6	$	190.5	$	77.3	$	57.7	$	16.6	$	158.3	$	143.0	$	47.7	$	17.9	$	1,579.9	$	1,645.2		(5.9	)		(0.9	)		(4.0	)

	Surplus direct premiums written were $17.9 million and $3.7 million for the six months ended June 30, 2009 and 2008, respectively.
*	Consolidated change consists of commercial lines, personal lines and E&S.
	Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Percentage changes are calculated based on whole dollar amounts.

2009 Second-Quarter Supplement

13

Quarterly Property Casualty Data — Commercial Lines

(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Commercial casualty:
Written premiums			$	171		$	209		$	183		$	171		$	199		$	211		$	379		$	410			$	582			$	764
Earned premiums				180			187			183			197			194			190			366			384				580				763
Loss and loss expenses ratio				54.2	%		55.2	%		23.9	%		44.4	%		39.8	%		58.3	%		54.7	%		48.9	%			47.4	%			41.7	%
Less catastrophe loss ratio				—			—			—			—			—			—			—			—				—				—
Loss and loss expenses excluding catastrophe loss ratio				54.2	%		55.2	%		23.9	%		44.4	%		39.8	%		58.3	%		54.7	%		48.9	%			47.4	%			41.7	%
Commercial property:
Written premiums			$	113		$	132		$	117		$	117		$	124		$	124		$	245		$	247			$	364			$	481
Earned premiums				120			121			122			120			123			122			241			244				364				487
Loss and loss expenses ratio				88.3	%		69.0	%		47.2	%		70.0	%		97.6	%		75.5	%		78.6	%		86.6	%			81.1	%			72.6	%
Less catastrophe loss ratio				23.5			7.4			(5.3	)		15.6			38.0			16.5			15.4			27.3				23.4				16.2
Loss and loss expenses excluding catastrophe loss ratio				64.8	%		61.6	%		52.5	%		54.4	%		59.6	%		59.0	%		63.2	%		59.3	%			57.7	%			56.4	%
Commercial auto:
Written premiums			$	94		$	110		$	94		$	93		$	108		$	107		$	204		$	215			$	308			$	402
Earned premiums				98			99			103			103			104			101			197			205				308				411
Loss and loss expenses ratio				62.5	%		59.7	%		94.8	%		63.2	%		67.5	%		63.4	%		61.1	%		65.5	%			64.7	%			72.3	%
Less catastrophe loss ratio				3.3			(0.1	)		(0.8	)		0.1			3.4			(0.4	)		1.6			1.5				1.0				0.6
Loss and loss expenses excluding catastrophe loss ratio				59.2	%		59.8	%		95.6	%		63.1	%		64.1	%		63.8	%		59.5	%		64.0	%			63.7	%			71.7	%
Workers’ compensation:
Written premiums			$	79		$	104		$	89		$	84		$	95		$	114		$	183		$	209			$	292			$	382
Earned premiums				88			83			93			93			94			94			171			189				282				375
Loss and loss expenses ratio				130.2	%		117.5	%		128.2	%		90.9	%		78.3	%		64.8	%		124.0	%		71.5	%			77.9	%			90.4	%
Less catastrophe loss ratio				—			—			—			—			—			—			—			—				—				—
Loss and loss expenses excluding catastrophe loss ratio				130.2	%		117.5	%		128.2	%		90.9	%		78.3	%		64.8	%		124.0	%		71.5	%			77.9	%			90.4	%
Specialty package:
Written premiums			$	35		$	38		$	37		$	36		$	36		$	37		$	73		$	73			$	109			$	145
Earned premiums				37			35			36			35			36			35			72			72				107				144
Loss and loss expenses ratio				114.3	%		96.0	%		40.6	%		80.2	%		109.7	%		63.4	%		105.4	%		86.8	%			84.6	%			73.5	%
Less catastrophe loss ratio				68.8			13.7			(3.8	)		12.2			43.9			8.1			41.9			26.2				21.5				15.2
Loss and loss expenses excluding catastrophe loss ratio				45.5	%		82.3	%		44.4	%		68.0	%		65.8	%		55.3	%		63.5	%		60.6	%			63.1	%			58.3	%
Surety and executive risk:
Written premiums			$	25		$	25		$	24		$	29		$	28		$	25		$	50		$	54			$	82			$	107
Earned premiums				25			25			28			27			28			25			50			53				80				107
Loss and loss expenses ratio				67.0	%		30.3	%		76.5	%		73.6	%		92.0	%		45.9	%		24.0	%		70.1	%			71.3	%			72.6	%
Less catastrophe loss ratio				—			—			—			—			—			—			48.8			—				—				—
Loss and loss expenses excluding catastrophe loss ratio				67.0	%		30.3	%		76.5	%		73.6	%		92.0	%		45.9	%		(24.8)	%		70.1	%			71.3	%			72.6	%
Machinery and equipment:
Written premiums			$	7		$	8		$	8		$	8		$	7		$	7		$	15		$	14			$	22			$	30
Earned premiums				8			7			8			7			7			7			15			14				22				29
Loss and loss expense ratio				39.7	%		59.3	%		50.4	%		32.4	%		34.1	%		53.3	%		49.3	%		43.6	%			39.8	%			42.5	%
Less catastrophe loss ratio				1.2			4.5			(0.2	)		2.8			1.0			—			2.8			0.6				1.3				0.9
Loss and loss expense excluding catastrophe loss ratio				38.5	%		54.8	%		50.6	%		29.6	%		33.1	%		53.3	%		46.5	%		43.0	%			38.5	%			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.

14

Quarterly Property Casualty Data — Personal Lines

(Dollars in millions)	Three months ended																				Six months ended						Nine months ended				Twelve months ended
	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Personal auto:
Written premiums			$	89		$	68		$	73		$	88		$	89		$	69		$	157		$	158			$	246			$	320
Earned premiums				80			79			80			81			82			83			159			164				245				325
Loss and loss expenses ratio				75.7	%		63.6	%		81.0	%		63.7	%		56.8	%		67.6	%		69.7	%		62.2	%			62.7	%			67.2	%
Less catastrophe loss ratio				3.1			0.3			(1.6	)		1.7			3.1			1.7			1.7			2.4				2.2				1.2
Loss and loss expenses excluding catastrophe loss ratio				72.6	%		63.3	%		82.6	%		62.0	%		53.7	%		65.9	%		68.0	%		59.8	%			60.5	%			66.0	%
Homeowner:
Written premiums			$	76		$	56		$	65		$	72		$	79		$	60		$	132		$	139			$	212			$	277
Earned premiums				70			70			69			64			71			72			140			143				208				277
Loss and loss expenses ratio				147.8	%		132.9	%		52.9	%		122.8	%		130.7	%		91.4	%		140.3	%		110.9	%			114.6	%			99.2	%
Less catastrophe loss ratio				77.6			51.5			(8.5	)		54.5			60.0			25.2			64.5			42.5				46.2				32.5
Loss and loss expenses excluding catastrophe loss ratio				70.2	%		81.4	%		61.4	%		68.3	%		70.7	%		66.2	%		75.8	%		68.4	%			68.4	%			66.7	%
Other personal:
Written premiums			$	25		$	21		$	21		$	24		$	23		$	21		$	45		$	44			$	67			$	88
Earned premiums				22			22			22			22			21			22			44			44				65				87
Loss and loss expenses ratio				42.6	%		37.8	%		51.8	%		91.5	%		43.2	%		62.2	%		40.2	%		52.9	%			65.8	%			62.2	%
Less catastrophe loss ratio				18.7			11.0			0.4			14.5			8.0			4.1			14.8			6.0				8.9				6.7
��
Loss and loss expenses excluding catastrophe loss ratio				23.9	%		26.8	%		51.4	%		77.0	%		35.2	%		58.1	%		25.4	%		46.9	%			56.9	%			55.5	%

* 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.

15

Consolidated Cincinnati Insurance Companies

Quarterly Detailed Loss Analysis

	Three months ended																				Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
All Lines
Loss and loss expenses:
Loss and loss expenses — current AY			$	529		$	482		$	610		$	564		$	532		$	467		$	1,010		$	999			$	1,564			$	2,173
Loss and loss expenses — prior AY’s				(27	)		9			(120	)		(103	)		(87	)		(9	)		(18	)		(96	)			(198	)			(317	)
Catastrophes — current AY				120			55			(17	)		62			113			47			175			160				222				205
Catastrophes — prior AY’s				(2	)		(2	)		1			2			—			(4	)		(4	)		(4	)			(2	)			(1	)
Total			$	620		$	544		$	474		$	525		$	558		$	501		$	1,163		$	1,059			$	1,586			$	2,060
Ratio to Earned Premiums
Loss and loss expenses :
Loss and loss expenses — current AY				72.1	%		65.8	%		81.9	%		75.1	%		69.7	%		62.2	%		69.0	%		66.0	%			69.1	%			72.2	%
Loss and loss expenses — prior AY’s				(3.7	)		1.2			(16.2	)		(13.8	)		(11.3	)		(1.2	)		(1.2	)		(6.3	)			(8.7	)			(10.5	)
Catastrophes — current AY				16.3			7.5			(2.2	)		8.3			15.0			6.2			11.9			10.5				9.8				6.8
Catastrophes — prior AY’s				(0.2	)		(0.3	)		0.1			0.1			(0.1	)		(0.5	)		(0.3	)		(0.2	)			(0.2	)			0.0
Total				84.5	%		74.2	%		63.6	%		69.7	%		73.3	%		66.7	%		79.4	%		70.0	%			70.0	%			68.5	%
Commercial Lines
Loss and loss expenses:
Loss and loss expenses — current AY			$	403		$	363		$	464		$	436		$	416		$	354		$	766		$	770			$	1,207			$	1,671
Loss and loss expenses — prior AY’s				(18	)		11			(97	)		(87	)		(74	)		(11	)		(7	)		(85	)			(171	)			(268	)
Catastrophes — current AY				61			17			(9	)		23			66			25			78			92				115				106
Catastrophes — prior AY’s				(4	)		(3	)		—			1			—			(3	)		(7	)		(3	)			(2	)			(2	)
Total			$	442		$	388		$	358		$	373		$	408		$	365		$	830		$	774			$	1,149			$	1,507
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses — current AY				72.5	%		65.2	%		80.9	%		75.0	%		70.8	%		61.6	%		68.8	%		66.4	%			69.2	%			72.2	%
Loss and loss expenses — prior AY’s				(3.2	)		2.1			(17.0	)		(15.0	)		(12.4	)		(1.9	)		(0.6	)		(7.3	)			(9.7	)			(11.6	)
Catastrophes — current AY				10.9			3.1			(1.5	)		4.0			11.4			4.5			7.0			7.9				6.7				4.6
Catastrophes — prior AY’s				(0.7	)		(0.6	)		0.0			0.1			(0.1	)		(0.6	)		(0.6	)		(0.3	)			(0.2	)			(0.1	)
Total				79.5	%		69.8	%		62.4	%		64.0	%		69.7	%		63.6	%		74.6	%		66.7	%			66.0	%			65.1	%
Personal Lines
Loss and loss expenses:
Loss and loss expenses — current AY			$	121		$	115		$	143		$	127		$	114		$	113		$	237		$	228			$	355			$	498
Loss and loss expenses — prior AY’s				(9	)		(2	)		(23	)		(16	)		(12	)		2			(12	)		(11	)			(27	)			(50	)
Catastrophes — current AY				59			38			(8	)		39			47			22			97			68				107				99
Catastrophes — prior AY’s				2			1			1			1			—			(1	)		3			(1	)			—				1
Total			$	173		$	152		$	113		$	151		$	149		$	136		$	325		$	284			$	435			$	548
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses — current AY				70.8	%		67.4	%		83.8	%		75.6	%		65.6	%		64.1	%		69.0	%		64.8	%			68.4	%			72.3	%
Loss and loss expenses — prior AY’s				(5.4	)		(1.4	)		(13.7	)		(9.4	)		(7.2	)		1.0			(3.4	)		(3.1	)			(5.2	)			(7.2	)
Catastrophes — current AY				34.3			22.0			(4.7	)		23.3			27.0			11.9			28.1			19.4				20.7				14.4
Catastrophes — prior AY’s				1.1			0.6			0.5			0.5			0.0			(0.3	)		0.9			(0.1	)			0.1				0.1
Total				100.9	%		88.6	%		65.9	%		90.0	%		85.4	%		76.7	%		94.6	%		81.0	%			84.0	%			79.6	%

* 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.

2009 Second-Quarter Supplement

16

Cincinnati Insurance Group (Excludes CSU)
Loss and Loss Expense Analysis

			Paid										Loss												Loss
	Paid		loss		Total		Case			IBNR			expense			Total			Case			IBNR			expense		Total
(In millions)	losses		expense		paid		reserves			reserves			reserves			reserves			incurred			incurred			incurred		incurred
Gross loss and loss expense incurred at June 30, 2009
Commercial casualty	$	114	$	58	$	172	$	43		$	(17	)	$	5		$	30		$	157		$	(17	)	$	62	$	202
Commercial property		174		22		196		6			13			1			20			180			13			23		216
Commercial auto		110		19		129		(11	)		3			—			(8	)		99			3			19		120
Workers’ compensation		124		20		145		(4	)		69			9			74			121			69			29		219
Specialty packages		48		8		56		3			16			2			20			51			16			10		76
Surety and executive risk		22		5		27		(7	)		2			(1	)		(7	)		15			2			4		20
Machinery and equipment		6		1		6		—			—			—			—			6			—			1		6
Total commercial lines		599		132		731		29			86			16			129			627			85			147		860
Personal auto		102		14		116		(6	)		1			—			(5	)		96			1			14		111
Homeowners		153		18		171		5			17			2			24			158			17			20		196
Other personal		25		3		28		(8	)		(1	)		(1	)		(10	)		17			(1	)		2		18
Total personal lines		280		35		316		(9	)		17			1			9			271			17			36		325
Total property casualty group	$	879	$	167	$	1,046	$	20		$	103		$	16		$	138		$	899		$	102		$	183	$	1,185
Ceded loss and loss expense incurred at June 30, 2009
Commercial casualty	$	8	$	3	$	11	$	(5	)	$	(4	)	$	(1	)	$	(9	)	$	3		$	(4	)	$	2	$	2
Commercial property		27		—		27		1			(2	)		—			(1	)		28			(2	)		—		26
Commercial auto		1		—		1		(1	)		—			—			(1	)		—			—			—		0
Workers’ compensation		7		1		8		(4	)		3			—			(1	)		3			3			1		7
Specialty packages		1		—		1		(1	)		—			—			(1	)		1			—			—		1
Surety and executive risk		8		2		9		(14	)		—			—			(14	)		(6	)		—			2		(4	)
Machinery and equipment		—		—		—		—			—			—			—			—			—			—		0
Total commercial lines		53		5		58		(24	)		(3	)		0			(27	)		29			(3	)		4		31
Personal auto		—		—		0		—			—			—			0			—			—			—		0
Homeowners		12		—		12		(10	)		(3	)		—			(12	)		2			(3	)		—		(1	)
Other personal		1		—		1		—			—			—			0			1			—			—		1
Total personal lines		13		0		13		(10	)		(3	)		0			(12	)		3			(3	)		0		0
Total property casualty group	$	66	$	6	$	71	$	(34	)	$	(6	)	$	(0	)	$	(40	)	$	32		$	(6	)	$	4	$	32
Net loss and loss expense incurred at June 30, 2009
Commercial casualty	$	106	$	55	$	161	$	48		$	(14	)	$	5		$	39		$	154		$	(14	)	$	60	$	201
Commercial property		147		22		169		5			14			1			21			152			14			23		189
Commercial auto		109		19		128		(10	)		3			—			(7	)		99			3			19		120
Workers’ compensation		117		20		137		—			67			9			76			117			67			28		212
Specialty packages		47		8		55		4			17			2			21			50			17			10		76
Surety and executive risk		14		3		17		6			2			(1	)		7			21			2			2		24
Machinery and equipment		6		1		6		1			—			—			0			6			—			1		8
Total commercial lines		546		127		673		53			89			16			157			599			88			142		830
Personal auto		101		14		116		(6	)		1			—			(5	)		95			1			14		111
Homeowners		142		18		160		14			20			2			37			156			20			20		196
Other personal		24		3		27		(7	)		(1	)		(1	)		(10	)		17			(1	)		2		18
Total personal lines		267		35		303		1			21			1			21			268			21			36		325
Total property casualty group	$	813	$	162	$	976	$	54		$	109		$	17		$	178		$	867		$	109		$	178	$	1,155

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

17

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data — All Lines

	Three months ended																				Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Premiums
Agency renewal written premiums			$	666		$	695		$	669		$	687		$	738		$	733		$	1,361		$	1,472			$	2,159			$	2,828
Agency new business written premiums				107			97			100			92			100			76			204			175				267				368
Ceded written premiums				(40	)		(39	)		(41	)		(49	)		(37	)		(38	)		(79	)		(75	)			(124	)			(165	)
Other written premiums				2			2			2			4			1			2			5			3				7				9
Written premium adjustment — statutory				(12	)		23			(13	)		(7	)		(12	)		3			11			(9	)			(17	)			(30	)
Reported written premiums — statutory*			$	723		$	778		$	717		$	727		$	790		$	776		$	1,501		$	1,566			$	2,292			$	3,010
Unearned premium change				10			(46	)		30			24			(29	)		(25	)		(36	)		(54	)			(29	)			—
Earned premiums			$	733		$	732		$	747		$	751		$	761		$	751		$	1,465		$	1,512			$	2,263			$	3,010
Year over year change %
Agency renewal written premiums				(9.8	)%		(5.2	)%		(5.1	)%		(6.1	)%		(3.0	)%		(3.7	)%		(7.5	)%		(3.4	)%			(4.3	)%			(4.5	)%
Agency new business written premiums				6.9			28.9			23.6			12.1			22.8			(6.3	)		16.4			8.3				9.6				13.1
Ceded written premiums				7.1			4.6			0.3			20.3			(4.6	)		(1.1	)		5.8			(2.9	)			5.1				3.8
Other written premiums				81.6			32.5			(50.6	)		(39.1	)		(74.6	)		(71.8	)		53.5			(73.1	)			(61.6	)			(59.3	)
Written premium adjustment — statutory				(0.3	)		661.2			(48.0	)		(81.6	)		(900.0	)		(91.5	)		(220.8	)		(124.3	)			161.5				(4.8	)
Reported written premiums — statutory*				(8.5	)		0.3			(1.0	)		(1.3	)		(2.5	)		(8.3	)		(4.2	)		(5.4	)			(4.2	)			(3.4	)
Statutory combined ratio
Statutory combined ratio				116.6	%		105.1	%		100.2	%		102.8	%		101.5	%		97.2	%		110.8	%		99.4	%			100.5	%			100.4	%
Contribution from catastrophe losses				16.1			7.2			(2.1	)		8.4			14.9			5.7			11.6			10.3				9.7				6.8
Statutory combined ratio excluding catastrophe losses				100.5	%		97.9	%		102.3	%		94.4	%		86.6	%		91.5	%		99.2	%		89.1	%			90.8	%			93.6	%
Commission expense ratio				18.2	%		17.7	%		20.8	%		17.7	%		17.4	%		17.7	%		17.9	%		17.5	%			17.6	%			18.4	%
Other expense ratio				13.8			13.2			15.9			15.4			10.7			12.9			13.5			11.8				12.8				13.7
Statutory expense ratio				32.0	%		30.9	%		36.7	%		33.1	%		28.1	%		30.6	%		31.4	%		29.3	%			30.4	%			32.1	%
GAAP combined ratio
GAAP combined ratio				116.6	%		107.5	%		98.9	%		101.2	%		103.5	%		98.6	%		112.1	%		101.1	%			101.1	%			100.6	%
Contribution from catastrophe losses				16.1			7.2			(2.1	)		8.4			14.9			5.7			11.6			10.3				9.7				6.8
GAAP combined ratio excluding catastrophe losses				100.5	%		100.3	%		101.0	%		92.8	%		88.6	%		92.9	%		100.5	%		90.8	%			91.4	%			93.8	%

*	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.
*	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.

2009 Second-Quarter Supplement

18

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data — Commercial Lines

	Three months ended																				Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Premiums
Agency renewal written premiums			$	488		$	557		$	514		$	502		$	552		$	588		$	1,045		$	1,140			$	1,642			$	2,156
Agency new business written premiums				79			76			83			77			87			66			155			153				229				312
Ceded written premiums				(32	)		(31	)		(23	)		(46	)		(31	)		(32	)		(64	)		(63	)			(109	)			(131	)
Other written premiums				1			1			(9	)		13			1			—			3			1				14				4
Written premium adjustment — statutory				(12	)		23			(13	)		(8	)		(12	)		3			11			(9	)			(17	)			(30	)
Reported written premiums — statutory*			$	524		$	626		$	552		$	538		$	597		$	625		$	1,149		$	1,222			$	1,759			$	2,311
Unearned premium change				32			(69	)		21			44			(11	)		(51	)		(37	)		(61	)			(16	)			5
Earned premiums			$	556		$	557		$	573		$	582		$	586		$	574		$	1,112		$	1,161			$	1,743			$	2,316
Year over year change %
Agency renewal written premiums				(11.6	)%		(5.2	)%		(5.9	)%		(7.7	)%		(2.9	)%		(4.0	)%		(8.3	)%		(3.5	)%			(4.8	)%			(5.1	)%
Agency new business written premiums				(8.9	)		14.9			16.4			6.0			21.2			(8.3	)		1.4			6.4				6.3				8.8
Ceded written premiums				3.2			0.2			(33.0	)		43.6			(1.6	)		2.8			1.7			0.6				15.1				2.4
Other written premiums				49.2		nm				(391.7	)		250.5			(73.4	)		(99.4	)		227.4			(89.2	)			25.0				(66.5	)
Written premium adjustment — statutory				4.2			666.7			(45.8	)		(81.6	)		(900.0	)		(91.5	)		(216.7	)		(124.3	)			161.7				(1.6	)
Reported written premiums — statutory*				(12.2	)		0.1			(1.9	)		(1.2	)		(2.7	)		(9.8	)		(5.9	)		(6.5	)			(4.9	)			(4.2	)
Statutory combined ratio
Statutory combined ratio				112.0	%		99.0	%		99.0	%		97.3	%		97.5	%		93.3	%		105.4	%		95.5	%			95.9	%			96.6	%
Contribution from catastrophe losses				10.2			2.5			(1.5	)		4.0			11.3			3.9			6.4			7.7				6.4				4.5
Statutory combined ratio excluding catastrophe losses				101.8	%		96.5	%		100.5	%		93.3	%		86.2	%		89.4	%		99.0	%		87.8	%			89.5	%			92.1	%
Commission expense ratio				18.1	%		16.4	%		20.8	%		18.1	%		16.9	%		16.5	%		17.2	%		16.7	%			17.1	%			18.0	%
Other expense ratio				14.4			12.8			15.7			15.4			10.9			13.2			13.5			12.1				13.1				13.7
Statutory expense ratio				32.5	%		29.2	%		36.5	%		33.5	%		27.8	%		29.7	%		30.7	%		28.8	%			30.2	%			31.7	%
GAAP combined ratio
GAAP combined ratio				110.9	%		102.2	%		98.1	%		94.9	%		99.9	%		95.0	%		106.6	%		97.4	%			96.6	%			97.0	%
Contribution from catastrophe losses				10.2			2.5			(1.5	)		4.0			11.3			3.9			6.4			7.7				6.4				4.5
GAAP combined ratio excluding catastrophe losses				100.7	%		99.7	%		99.6	%		90.9	%		88.6	%		91.1	%		100.2	%		89.7	%			90.2	%			92.5	%

*	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.

2009 Second-Quarter Supplement

19

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data — Personal Lines

	Three months ended																				Six months ended						Nine months ended				Twelve months ended
(Dollars in millions)	12/31/09	9/30/09	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09	9/30/08			12/31/09	12/31/08
Premiums
Agency renewal written premiums			$	176		$	137		$	156		$	185		$	186		$	146		$	313		$	332			$	517			$	672
Agency new business written premiums				19			14			11			11			10			8			34			19				30				42
Ceded written premiums				(7	)		(7	)		(8	)		(13	)		(6	)		(6	)		(15	)		(12	)			(26	)			(33	)
Other written premiums				1			1			—			1			1			2			2			2				4				4
Written premium adjustment — statutory				—			—			—			—			—			—			—			—				—				—
Reported written premiums — statutory*			$	190		$	145		$	158		$	184		$	191		$	150		$	334		$	341			$	525			$	685
Unearned premium change				(18	)		26			13			(17	)		(17	)		27			9			10				(7	)			4
Earned premiums			$	172		$	171		$	171		$	167		$	174		$	177		$	343		$	351			$	518			$	689
Year over year change %
Agency renewal written premiums				(5.3	)%		(6.0	)%		(2.3	)%		(1.6	)%		(3.3	)%		(2.8	)%		(5.6	)%		(3.1	)%			(2.5	)%			(2.5	)%
Agency new business written premiums				84.7			67.2			17.9			11.8			7.7			(0.5	)		76.8			3.9				6.7				9.5
Ceded written premiums				20.2			23.1			7.0			61.4			(17.3	)		(17.2	)		21.6			(17.3	)			11.0				10.1
Other written premiums				122.6			(50.0	)		(64.9	)		(37.3	)		(76.2	)		(0.4	)		(8.9	)		(43.3	)			(41.3	)			(45.4	)
Written premium adjustment — statutory				0.0			0.0			(100.0	)		(100.0	)		0.0			(100.0	)		0.0			(100.0	)			(100.0	)			(100.0	)
Reported written premiums — statutory*				(0.6	)		(3.5	)		(1.4	)		(4.0	)		(3.0	)		(2.0	)		(1.9	)		(2.6	)			(3.1	)			(2.7	)
Statutory combined ratio
Statutory combined ratio				130.5	%		123.9	%		102.1	%		120.6	%		114.3	%		110.8	%		126.8	%		112.2	%			114.9	%			111.6	%
Contribution from catastrophe losses				35.4			22.6			(4.1	)		23.8			27.0			11.6			29.0			19.3				20.7				14.5
Statutory combined ratio excluding catastrophe losses				95.1	%		101.3	%		106.2	%		96.8	%		87.3	%		99.2	%		97.8	%		92.9	%			94.2	%			97.1	%
Commission expense ratio				18.0	%		22.5	%		21.2	%		16.4	%		18.6	%		22.3	%		20.0	%		20.2	%			18.9	%			19.5	%
Other expense ratio				11.7			12.9			15.0			14.0			10.3			11.8			12.2			11.0				12.0				12.7
Statutory expense ratio				29.7	%		35.4	%		36.2	%		30.4	%		28.9	%		34.1	%		32.2	%		31.2	%			30.9	%			32.2	%
GAAP combined ratio
GAAP combined ratio				133.2	%		120.7	%		100.0	%		122.5	%		115.3	%		110.1	%		126.9	%		112.7	%			115.9	%			111.9	%
Contribution from catastrophe losses				35.4			22.6			(4.1	)		23.8			27.0			11.6			29.0			19.3				20.7				14.5
GAAP combined ratio excluding catastrophe losses				97.8	%		98.1	%		104.1	%		98.7	%		88.3	%		98.5	%		97.9	%		93.4	%			95.2	%			97.4	%

*	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.

2009 Second-Quarter Supplement

20

The Cincinnati Life Insurance Company

Statutory Statements of Income

	For the Three Months Ended June 30,												For the Six Months Ended June 30,
(Dollars in millions)	2009			2008			Change			% Change			2009			2008			Change			% Change
Net premiums written	$	71		$	45		$	26			58.8		$	119		$	87		$	32			37.7
Net investment income		31			29			2			5.6			61			58			3			4.1
Amortization of interest maintenance reserve		(2	)		—			(2	)	nm				(3	)		(1	)		(2	)		(518.4	)
Commissions and expense allowances on reinsurance ceded		2			2			—			(7.2	)		4			4			—			(8.3	)
Income from fees associated with Separate Accounts		—			1			(1	)	nm				—			1			(1	)	nm
Total revenues	$	102		$	77		$	25			33.5		$	180		$	150		$	30			20.5
Death benefits and matured endowments	$	12		$	10		$	2			14.0		$	29		$	21		$	8			36.5
Annuity benefits		7			6			1			16.0			17			13			4			24.3
Disability benefits and benefits under accident and health contracts		1			1			—			(3.3	)		1			1			—			(5.1	)
Surrender benefits and group conversions		6			6			—			(3.6	)		11			12			(1	)		(7.2	)
Interest and adjustments on deposit-type contract funds		3			3			—			(3.8	)		5			6			(1	)		(4.3	)
Increase in aggregate reserves for life and accident and health contracts		58			30			28			92.8			85			52			33			63.1
Payments on supplementary contracts with life contingencies		—			—			—		nm				—			—			—		nm
Total benefit expenses	$	86		$	56		$	30			53.3		$	148		$	106		$	42			40.5
Commissions	$	10		$	8		$	2			20.8		$	18		$	16		$	2			11.4
General insurance expenses and taxes		9			10			(1	)		(6.9	)		18			19			(1	)		(6.4	)
Increase in loading on deferred and uncollected premiums		(3	)		(2	)		(1	)		(52.6	)		(3	)		(2	)		(1	)		(60.1	)
Net transfers to or (from) Separate Accounts		—			—			—		nm				(2	)		—			(2	)	nm
Other deductions		—			—			—		nm				—			—			—		nm
Total operating expenses	$	16		$	16		$	—			0.7		$	31		$	34		$	(3	)		(7.2	)
Federal and foreign income taxes incurred		(1	)		3			(4	)	nm				(4	)		11			(15	)	nm
Net gain from operations before realized capital gains or (losses)	$	1		$	2		$	(1	)		27.5		$	5		$	(1	)	$	6		nm
Net realized gains or (losses) net of capital gains tax		—			(8	)		8		nm				(6	)		(14	)		8			56.0
Net income (loss) (statutory)	$	1		$	(7	)	$	8		nm			$	(1	)	$	(15	)	$	14			90.8

*	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.

2009 Second-Quarter Supplement

21