Exhibit 11
Statements Re: Computation of Per Share Earnings
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in millions except share data) | 2005 | 2004 | 2005 | 2004 | ||||||||||||
Numerator: | ||||||||||||||||
Net income—basic and diluted | $ | 158 | $ | 155 | $ | 302 | $ | 301 | ||||||||
Denominator: | ||||||||||||||||
Weighted-average common shares outstanding | 175,226,612 | 176,654,359 | 175,389,421 | 176,703,010 | ||||||||||||
Effect of stock options | 1,870,881 | 2,030,569 | 2,061,945 | 1,955,925 | ||||||||||||
Adjusted weighted-average shares | 177,097,493 | 178,684,928 | 177,451,366 | 178,658,935 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.90 | $ | 0.88 | $ | 1.72 | $ | 1.71 | ||||||||
Diluted | $ | 0.89 | $ | 0.87 | $ | 1.70 | $ | 1.69 |
Anti-Dilutive Securities
Certain option shares were not included in the computation of diluted earnings per share for the three-month and six-month periods ended June 30, 2005 and 2004, since inclusion of these option shares would have anti-dilutive effects, as the options’ exercise prices exceeded the respective average market prices of the company’s shares.
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
Number of anti-dilutive option shares | 1,755,212 | 264,600 | 1,490,608 | 264,600 | ||||||||||||
Exercise prices | $ | 41.14-41.62 | $ | 41.14 | $ | 41.62 | $ | 41.14 |
Cincinnati Financial Corporation | ||||
Form 10-Q for the quarter ended June 30, 2005 | 51 |