Cincinnati Financial (CINF) 10-Q 2005 Q2 Quarterly report

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