Cincinnati Financial (CINF) 10-Q 2006 Q2 Quarterly report

Exhibit 11

Statements Re: Computation Of Per Share Earnings

(Dollars in millions except share data)	Three months ended June 30,				Six months ended June 30,
	2006		2005		2006		2005
Numerator:
Net income—basic and diluted	$	132	$	158	$	684	$	302
Denominator:
Weighted-average common shares outstanding		173,275,927		175,226,612		173,724,517		175,389,421
Effect of stock options		1,746,440		1,870,881		1,890,500		2,061,945
Adjusted weighted-average shares		175,022,367		177,097,493		175,615,017		177,451,366
Earnings per share:
Basic	$	0.77	$	0.90	$	3.94	$	1.72
Diluted	$	0.76	$	0.89	$	3.90	$	1.70

Anti-Dilutive Securities

Certain option shares were not included in the computation of diluted earnings per share for the three-and six month periods ended June 30, 2006, since inclusion of these option shares would have anti-dilutive effects.

	Three months ended June 30,				Six months ended June 30,
	2006		2005		2006		2005
Number of anti-dilutive option shares		2,800,589		1,755,212		2,800,589		1,490,608
Exercise price	$	41.62-45.26	$	41.14-41.62	$	41.62-45.26	$	41.62

Cincinnati Financial Corporation
Form 10-Q for the quarter ended June 30, 2006

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