Cincinnati Financial (CINF) 8-K Cincinnati Financial Reports Fourth-quarter and Full-year 2007 Results

Exhibit 99.2

Cincinnati Financial Corporation
Supplemental Financial Data
December 31, 2007
Fourth Quarter and Full Year

6200 South Gilmore Road
Fairfield, Ohio 45014-5141
www.cinfin.com

Investor Contact:	Media Contact:	Shareholder Contact:
Heather J. Wietzel	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	aa-			A+		A2		A
The Cincinnati Insurance Companies
Insurer Financial Strength
Property Casualty Group		A++		—	Aa3		AA-
Standard Market Subsidiaries:
The Cincinnati Insurance Company		A++	AA		Aa3		AA-
The Cincinnati Indemnity Company		A++	AA		Aa3		AA-
The Cincinnati Casualty Company		A++	AA		Aa3		AA-
Excess and Surplus Lines Subsidiary:
The Cincinnati Specialty Underwriters Insurance Company		A		—		—		—
The Cincinnati Life Insurance Company		A+	AA			—	AA-

Ratings are as of February 5, 2008, under continuing review and subject to change and/or affirmation. For the latest ratings, select Ratings tab 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 in the Annual Report on Form 10-K for 2006. The results of operations for interim periods may not be indicative of results to be expected for the full year. Certain 2006 interim period data has been updated to correct rounding differences.

Cincinnati Financial Corporation

Supplemental Financial Data

Fourth-Quarter and Full-Year 2007

	Page
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures		3
Consolidated
Quick Reference		4
Consolidated Statements of Income		5
CFC and Subsidiary Consolidation — Twelve Months Ended December 31, 2007		6
CFC and Subsidiary Consolidation — Twelve Months Ended December 31, 2007		7
CFC and Subsidiary Consolidation — Three Months Ended December 31, 2007		8
CFC and Subsidiary Consolidation — Three Months Ended December 31, 2007		9
Consolidated Balance Sheets		10
10-Year Net Income Reconciliation		11
Quarterly Net Income Reconciliation		12
Top Holdings — Common Stocks		13
CFC Subsidiaries — Selected Balance Sheet Data		14
Property Casualty Insurance Operations
GAAP Statements of Income		15
Statutory Statements of Income		16
Statutory Quarterly Analysis — Consolidated		17
Statutory Quarterly Analysis — Commercial Lines		18
Statutory Quarterly Analysis — Personal Lines		19
Direct Written Premiums by Line of Business and State		20
Quarterly Property Casualty Data — Commercial Lines of Business		21
Quarterly Property Casualty Data — Personal Lines of Business		22
Quarterly Detailed Loss Analysis		23
Reconciliation Data
10-Year Property Casualty Data — Consolidated		24
6-Year Property Casualty Data — Commercial Lines		25
6-Year Property Casualty Data — Personal Lines		26
Quarterly Property Casualty Data — Consolidated		27
Quarterly Property Casualty Data — Commercial Lines		28
Quarterly Property Casualty Data — Personal Lines		29
Life Insurance Operations
GAAP Statements of Income		30
Statutory Statements of Income		31
Expenses as a Percentage of Premium		32

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 — 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.

2007 Fourth-Quarter and Full-Year Financial Supplement 3

Cincinnati Financial Corporation
Quick Reference — Fourth Quarter 2007
(all data shown is for the three months ended or as of December 31, 2007)

(Based on reported data — see Pages 27-29 for adjusted data)

(Dollars in millions except share data)

Revenues:
Commercial lines net written premiums	$	562
Year-over-year percentage change		(4.6	)%
Personal lines net written premiums	$	162
Year-over-year percentage change		(2.3	)%
Property casualty net written premiums	$	724
Year-over-year percentage change		(4.1	)%
Commercial lines net earned premiums	$	601
Year-over-year percentage change		(3.0	)%
Personal lines net earned premiums	$	176
Year-over-year percentage change		(3.7	)%
Property casualty net earned premiums	$	777
Year-over-year percentage change		(3.1	)%
Life and accident and health net earned premiums	$	32
Year-over-year percentage change		11.0	%
Investment income	$	157
Year-over-year percentage change		8.5	%
Realized gains on investments	$	12
Year-over-year percentage change		(2.0	)%
Other income	$	5
Year-over-year percentage change		4.2	%
Total revenues	$	983
Year-over-year percentage change		(0.9	)%
Income:
Operating income	$	179
Year-over-year percentage change		46.4	%
Net realized investment gains and losses	$	8
Year-over-year percentage change		(4.7	)%
Net income	$	187
Year-over-year percentage change		43.2	%
Per share (diluted):
Operating income	$	1.07
Year-over-year percentage change		52.9	%
Net realized investment gains and losses	$	0.04
Year-over-year percentage change		(20.0	)%
Net income	$	1.11
Year-over-year percentage change		48.0	%
Book value	$	35.70
Year-over-year percentage change		(9.3	)%
Weighted average shares — diluted		172,167,452
Year-over-year percentage change		(1.9	)%
Benefits and expenses:
Commercial lines loss and loss expenses	$	310
Year-over-year percentage change		(15.9	)%
Personal lines loss and loss expenses	$	85
Year-over-year percentage change		(36.2	)%
Property casualty loss and loss expenses	$	395
Year-over-year percentage change		(21.3	)%
Life and accident and health losses and policy benefits	$	35
Year-over-year percentage change		15.0	%
Operating expenses	$	286
Year-over-year percentage change		20.4	%
Interest expenses	$	13
Year-over-year percentage change		(7.6	)%
Total expenses	$	729
Year-over-year percentage change		(11.1	)%
Income before income taxes	$	254
Year-over-year percentage change		47.7	%
Total income tax	$	67
Year-over-year percentage change		61.7	%
Effective tax rate		26.5	%
Ratios:
Commercial lines GAAP combined ratio		87.3	%
Personal lines GAAP combined ratio		79.7	%
Property casualty GAAP combined ratio		85.6	%
Commercial lines STAT combined ratio		89.7	%
Personal lines STAT combined ratio		81.4	%
Property casualty STAT combined ratio		87.9	%
Return on equity based upon net income		12.0	%
Return on equity based upon operating income		11.5	%
Balance Sheet:
Fixed maturity investments	$	5,848
Equity securities		6,249
Short-term investments		101
Other invested assets		63
Total invested assets	$	12,261
Property casualty and life loss and loss expense reserves	$	3,967
Total debt		860
Shareholders’ equity		5,929

2007 Fourth-Quarter and Full-Year Financial Supplement 4

Cincinnati Financial Corporation
Consolidated Statements of Income

	For the Three Months Ended December 31,												For the Twelve Months Ended December 31,
	2007			2006			Change			% Change			2007			2006			Change			% Change
Revenues:
Premiums earned:
Property casualty	$	821,187,212		$	844,769,726		$	(23,582,514	)		(2.79	)	$	3,299,041,567		$	3,320,696,134		$	(21,654,567	)		(0.65	)
Life		46,505,810			43,271,070			3,234,740			7.48			171,169,598			152,590,039			18,579,559			12.18
Accident health		1,836,071			1,703,987			132,084			7.75			6,977,193			6,652,508			324,685			4.88
Premiums ceded		(60,712,176	)		(59,801,313	)		(910,863	)		1.52			(227,667,790	)		(210,353,317	)		(17,314,473	)		8.23
Total premiums earned		808,816,917			829,943,470			(21,126,553	)		(2.55	)		3,249,520,568			3,269,585,364			(20,064,796	)		(0.61	)
Investment income		157,374,940			145,070,824			12,304,116			8.48			607,751,789			570,103,128			37,648,661			6.60
Realized gain on investments		12,084,183			12,324,063			(239,880	)		(1.95	)		382,230,702			683,701,293			(301,470,591	)		(44.09	)
Other income		4,880,874			4,682,861			198,013			4.23			19,774,644			18,461,940			1,312,704			7.11
Total revenues	$	983,156,914		$	992,021,218		$	(8,864,304	)		(0.89	)	$	4,259,277,703		$	4,541,851,725		$	(282,574,022	)		(6.22	)
Benefits & expenses:
Losses & policy benefits	$	460,900,672		$	550,901,417		$	(90,000,745	)		(16.34	)	$	2,110,380,156		$	2,245,203,172		$	(134,823,016	)		(6.00	)
Reinsurance recoveries		(31,151,130	)		(18,732,358	)		(12,418,772	)		66.30			(147,176,200	)		(117,399,472	)		(29,776,728	)		25.36
Commissions		164,183,225			150,038,921			14,144,304			9.43			623,629,441			622,008,105			1,621,336			0.26
Other operating expenses		90,444,253			95,572,466			(5,128,213	)		(5.37	)		347,808,218			338,085,073			9,723,145			2.88
Interest expense		12,753,818			13,804,440			(1,050,622	)		(7.61	)		51,457,022			53,116,383			(1,659,361	)		(3.12	)
Taxes, licenses & fees		18,239,547			18,740,630			(501,083	)		(2.67	)		75,040,737			76,742,883			(1,702,146	)		(2.22	)
Incr deferred acq expense		8,241,247			5,382,897			2,858,350			53.10			(8,772,600	)		(21,359,500	)		12,586,900			(58.93	)
Other expenses		5,396,854			4,244,124			1,152,730			27.16			14,436,935			16,342,089			(1,905,154	)		(11.66	)
Total expenses	$	729,008,486		$	819,952,537		$	(90,944,051	)		(11.09	)	$	3,066,803,709		$	3,212,738,733		$	(145,935,024	)		(4.54	)
Income before income taxes	$	254,148,428		$	172,068,681		$	82,079,747			47.70		$	1,192,473,994		$	1,329,112,992		$	(136,638,998	)		(10.28	)
Provision for income taxes:
Current operating income	$	66,757,820		$	36,443,951		$	30,313,869			83.18		$	199,004,461		$	155,204,170		$	43,800,291			28.22
Realized investments gains and losses		4,445,507			4,310,013			135,494			3.14			136,858,385			249,202,156			(112,343,771	)		(45.08	)
Deferred		(3,841,764	)		895,840			(4,737,604	)		(528.84	)		1,137,231			(5,497,770	)		6,635,001			(120.69	)
Total income taxes	$	67,361,563		$	41,649,804		$	25,711,759			61.73		$	337,000,077		$	398,908,556		$	(61,908,479	)		(15.52	)
Net income	$	186,786,865		$	130,418,877		$	56,367,988			43.22		$	855,473,917		$	930,204,436		$	(74,730,519	)		(8.03	)
Comprehensive net income	$	(403,694,647	)	$	448,641,905		$	(852,336,552	)		(189.98	)	$	(375,607,721	)	$	1,058,081,420		$	(1,433,689,141	)		(135.50	)
Operating income	$	179,148,189		$	122,404,830		$	56,743,359			46.36		$	610,101,600		$	495,705,299		$	114,396,301			23.08
Net realized investments gains and losses	$	7,638,676		$	8,014,047		$	(375,371	)		(4.68	)	$	245,372,317		$	434,499,137		$	(189,126,820	)		(43.53	)
Net income per share:
Operating income	$	1.07		$	0.71		$	0.36			50.70		$	3.57		$	2.86		$	0.71			24.83
Net realized investments gains and losses		0.05			0.04			0.01			25.00			1.44			2.50			(1.06	)		(42.40	)
Net income per share (basic)	$	1.12		$	0.75		$	0.37			49.33		$	5.01		$	5.36		$	(0.35	)		(6.53	)
Operating income	$	1.07		$	0.70		$	0.37			52.86		$	3.54		$	2.82		$	0.72			25.53
Net realized investments gains and losses		0.04			0.05			(0.01	)		(20.00	)		1.43			2.48			(1.05	)		(42.34	)
Net income per share (diluted)	$	1.11		$	0.75		$	0.36			48.00		$	4.97		$	5.30		$	(0.33	)		(6.23	)
Dividends per share:
Paid	$	0.355		$	0.335		$	0.02			5.97		$	1.40		$	1.31		$	0.09			6.87
Declared		0.355			0.335			0.02			5.97		$	1.42		$	1.34			0.08			5.97
Number of shares:
Weighted avg — basic		167,007,116			173,030,127			(6,023,011	)		(3.48	)		170,595,204			173,423,395			(2,828,191	)		(1.63	)
Weighted avg — diluted		168,163,752			174,988,162			(6,824,410	)		(3.90	)		172,167,452			175,451,341			(3,283,889	)		(1.87	)

2007 Fourth-Quarter and Full-Year Financial Supplement 5

Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Twelve Months Ended December 31, 2007

	Total			CFC			CIC GROUP			CLIC			CFC-I			CINFIN			CSR			ELIM
Revenues:
Premiums earned:
Property casualty	$	3,299,041,567		$	—		$	3,299,384,836		$	—		$	—		$	—		$	—		$	(343,269	)
Life		171,169,598			—			—			171,169,598			—			—			—			—
Accident health		6,977,193			—			—			6,977,193			—			—			—			—
Premiums ceded		(227,667,790	)		—			(174,551,071	)		(53,116,719	)		—			—			—			—
Total earned premium		3,249,520,568			—			3,124,833,765			125,030,072			—			—			—			(343,269	)
Investment income		607,751,789			100,486,597			392,580,307			114,416,869			357,173			271,563			3,045			(363,765	)
Realized gain on investments		382,230,702			97,181,904			232,176,239			40,231,015			412,781			(7,168	)		—			12,235,931
Other income		19,774,644			10,025,896			4,661,137			4,444,171			10,079,013			2,469,300			—			(11,904,873	)
Total revenues	$	4,259,277,703		$	207,694,397		$	3,754,251,448		$	284,122,127		$	10,848,967		$	2,733,695		$	3,045		$	(375,976	)
Benefits & expenses:
Losses & policy benefits	$	2,110,380,156		$	—		$	1,939,058,201		$	173,523,103		$	—		$	—		$	—		$	(2,201,148	)
Reinsurance recoveries		(147,176,200	)		—			(106,882,598	)		(40,293,602	)		—			—			—			—
Commissions		623,629,441			—			598,432,647			25,196,794			—			—			—			—
Other operating expenses		347,808,218			17,042,561			302,566,198			34,666,846			4,487,896			749,826			262,192			(11,967,301	)
Interest expense		51,457,022			48,898,521			—			—			2,888,190			—			—			(329,689	)
Taxes, licenses & fees		75,040,737			1,212,217			70,051,616			3,605,001			45,125			126,778			—			—
Incr deferred acq expenses		(8,772,600	)		—			2,749,119			(11,521,719	)		—			—			—			—
Other expenses		14,436,935			—			14,436,827			108			—			—			—			—
Total expenses	$	3,066,803,709		$	67,153,299		$	2,820,412,010		$	185,176,531		$	7,421,211		$	876,604		$	262,192		$	(14,498,138	)
Income before income taxes	$	1,192,473,994		$	140,541,098		$	933,839,438		$	98,945,596		$	3,427,756		$	1,857,091		$	(259,147	)	$	14,122,162
Provision for income taxes:
Current operating income	$	199,004,461		$	(1,530,715	)	$	195,217,396		$	7,629,012		$	1,399,800		$	616,493		$	(44,949	)	$	(4,282,576	)
Capital gains/losses		136,858,385			35,648,666			82,554,324			14,230,855			144,473			(2,509	)		—			4,282,576
Deferred		1,137,231			(1,743,257	)		(13,769,174	)		12,018,148			(268,968	)		3,478			(45,753	)		4,942,757
Total income tax	$	337,000,077		$	32,374,694		$	264,002,546		$	33,878,015		$	1,275,305		$	617,462		$	(90,702	)	$	4,942,757
Net income — current year	$	855,473,917		$	108,166,404		$	669,836,892		$	65,067,581		$	2,152,451		$	1,239,629		$	(168,445	)	$	9,179,405
Net income — prior year	$	930,204,436		$	304,395,166		$	557,879,628		$	62,697,335		$	1,876,129		$	1,285,186		$	—		$	2,070,992
Change in net income		-8.0	%		-64.5	%		20.1	%		3.8	%		14.7	%		-3.5	%		N/A

2007 Fourth-Quarter and Full-Year Financial Supplement 6

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

	Total			CFC			CIC GROUP			CLIC			CFC-I			CINFIN			ELIM
Revenues:
Premiums earned:
Property casualty	$	3,320,696,134		$	—		$	3,321,610,148		$	—		$	—		$	—		$	(914,014	)
Life		152,590,039			—			—			152,590,039			—			—			—
Accident health		6,652,508			—			—			6,652,508			—			—			—
Premiums ceded		(210,353,317	)		—			(157,587,693	)		(52,765,624	)		—			—			—
Total earned premium		3,269,585,364			—			3,164,022,455			106,476,923			—			—			(914,014	)
Investment income		570,103,128			97,437,082			367,304,753			107,656,860			62,400			209,379			(2,567,346	)
Realized gain on investments		683,701,293			410,338,912			225,846,088			44,861,000			(324,417	)		5,697			2,974,013
Other income		18,461,940			10,098,558			3,266,830			3,552,294			11,131,714			2,374,373			(11,961,829	)
Total revenues	$	4,541,851,725		$	517,874,552		$	3,760,440,126		$	262,547,077		$	10,869,697		$	2,589,449		$	(12,469,176	)
Benefits & expenses:
Losses & policy benefits	$	2,245,203,172		$	—		$	2,085,421,315		$	161,984,990		$	—		$	—		$	(2,203,133	)
Reinsurance recoveries		(117,399,472	)		—			(77,446,382	)		(39,953,090	)		—			—			—
Commissions		622,008,105			—			596,188,393			25,819,712			—			—			—
Other operating expenses		338,085,073			19,609,842			292,709,156			31,977,077			5,416,146			626,085			(12,253,233	)
Interest expense		53,116,383			50,612,821			888,930			98,000			2,715,584			—			(1,198,952	)
Taxes, licenses & fees		76,742,883			1,152,118			72,695,021			3,080,836			(232,648	)		47,556			—
Incr deferred acq expenses		(21,359,500	)		—			(3,642,356	)		(17,717,144	)		—			—			—
Other expenses		16,342,089			—			16,341,980			109			—			—			—
Total expenses	$	3,212,738,733		$	71,374,781		$	2,983,156,057		$	165,290,490		$	7,899,082		$	673,641		$	(15,655,318	)
Income before income taxes	$	1,329,112,992		$	446,499,771		$	777,284,069		$	97,256,587		$	2,970,615		$	1,915,808		$	3,186,142
Provision for income taxes:
Current operating income	$	155,204,170		$	(178,058	)	$	147,254,816		$	6,273,558		$	1,232,459		$	621,395		$	—
Capital gains/losses		249,202,156			153,102,119			80,218,693			15,879,350			—			1,994			—
Deferred		(5,497,770	)		(10,819,456	)		(8,069,068	)		12,406,344			(137,973	)		7,233			1,115,150
Total income tax	$	398,908,556		$	142,104,605		$	219,404,441		$	34,559,252		$	1,094,486		$	630,622		$	1,115,150
Net income — current year	$	930,204,436		$	304,395,166		$	557,879,628		$	62,697,335		$	1,876,129		$	1,285,186		$	2,070,992
Net income — prior year	$	601,970,190		$	36,770,595		$	511,573,782		$	47,282,395		$	3,072,943		$	1,206,078		$	2,064,397
Change in net income		54.5	%		727.8	%		9.1	%		32.6	%		-38.9	%		6.6	%

2007 Fourth-Quarter and Full-Year Financial Supplement 7

Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Three Months Ended December 31, 2007

	Total			CFC			CIC GROUP			CLIC			CFC-I			CINFIN			CSR			ELIM
Revenues:
Premiums earned:
Property casualty	$	821,187,212		$	—		$	821,196,485		$	—		$	—		$	—		$	—		$	(9,273	)
Life		46,505,810			—			—			46,505,810			—			—			—			—
Accident health		1,836,071			—			—			1,836,071			—			—			—			—
Premiums ceded		(60,712,176	)		—			(44,194,344	)		(16,517,832	)		—			—			—			—
Total earned premium		808,816,917			—			777,002,141			31,824,049			—			—			—			(9,273	)
Investment income		157,374,940			26,048,205			100,841,548			29,822,571			150,801			74,816			3,045			433,954
Realized gain on investments		12,084,183			(5,970,324	)		29,802,182			(11,519,842	)		101,191			—			—			(329,024	)
Other income		4,880,874			2,536,460			1,350,240			982,465			2,377,727			616,954			—			(2,982,972	)
Total revenues	$	983,156,914		$	22,614,341		$	908,996,111		$	51,109,243		$	2,629,719		$	691,770		$	3,045		$	(2,887,315	)
Benefits & expenses:
Losses & policy benefits	$	460,900,672		$	—		$	415,795,751		$	45,653,794		$	—		$	—		$	—		$	(548,873	)
Reinsurance recoveries		(31,151,130	)		—			(20,512,028	)		(10,639,102	)		—			—			—			—
Commissions		164,183,225			—			158,923,102			5,260,123			—			—			—			—
Other operating expenses		90,444,253			3,185,174			77,236,002			11,284,880			1,171,021			226,499			262,192			(2,921,515	)
Interest expense		12,753,818			12,301,347			—			—			708,758			—			—			(256,287	)
Taxes, licenses & fees		18,239,547			291,948			17,073,630			848,388			9,331			16,250			—			—
Incr deferred acq expenses		8,241,247			—			11,031,989			(2,790,742	)		—			—			—			—
Other expenses		5,396,854			—			5,396,854			—			—			—			—			—
Total expenses	$	729,008,486		$	15,778,469		$	664,945,300		$	49,617,341		$	1,889,110		$	242,749		$	262,192		$	(3,726,675	)
Income before income taxes	$	254,148,428		$	6,835,872		$	244,050,811		$	1,491,902		$	740,609		$	449,021		$	(259,147	)	$	839,360
Provision for income taxes:
Current operating income	$	66,757,820		$	4,709,097		$	58,411,169		$	3,120,097		$	309,062		$	138,186		$	(44,949	)	$	115,158
Capital gains/losses		4,445,507			(2,164,614	)		10,714,301			(4,026,945	)		35,416			2,507			—			(115,158	)
Deferred		(3,841,764	)		(6,078,191	)		943,019			1,103,621			(59,868	)		1,632			(45,753	)		293,776
Total income tax	$	67,361,563		$	(3,533,708	)	$	70,068,489		$	196,773		$	284,610		$	142,325		$	(90,702	)	$	293,776
Net income — current year	$	186,786,865		$	10,369,580		$	173,982,322		$	1,295,129		$	455,999		$	306,696		$	(168,445	)	$	545,584
Net income — prior year	$	130,418,876		$	12,506,126		$	108,185,530		$	8,602,213		$	487,191		$	289,645		$	—		$	348,171
Change in net income		43.2	%		-17.1	%		60.8	%		-84.9	%		-6.4	%		5.9	%		N/A

2007 Fourth-Quarter and Full-Year Financial Supplement 8

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

	Total			CFC			CIC GROUP			CLIC			CFC-I			CINFIN			ELIM
Revenues:
Premiums earned:
Property casualty	$	844,769,727		$	—		$	845,479,506		$	—		$	—		$	—		$	(709,779	)
Life		43,271,070			—			—			43,271,070			—			—			—
Accident health		1,703,987			—			—			1,703,987			—			—			—
Premiums ceded		(59,801,314	)		—			(43,501,451	)		(16,299,863	)		—			—			—
Total earned premium		829,943,470			—			801,978,055			28,675,194			—			—			(709,779	)
Investment income		145,070,825			24,550,476			93,654,263			27,053,035			15,600			57,244			(259,793	)
Realized gain on investments		12,324,061			1,862,472			7,323,470			2,533,775			217,084			(8,277	)		395,537
Other income		4,682,861			2,536,489			723,643			992,375			2,806,674			621,838			(2,998,158	)
Total revenues	$	992,021,217		$	28,949,437		$	903,679,431		$	59,254,379		$	3,039,358		$	670,805		$	(3,572,193	)
Benefits & expenses:
Losses & policy benefits	$	550,901,417		$	—		$	507,755,637		$	43,696,578		$	—		$	—		$	(550,798	)
Reinsurance recoveries		(18,732,359	)		—			(5,484,567	)		(13,247,792	)		—			—			—
Commissions		150,038,921			—			144,113,098			5,925,823			—			—			—
Other operating expenses		95,572,467			4,960,848			80,278,976			12,192,870			1,461,656			230,387			(3,552,270	)
Interest expense		13,804,440			12,460,505			496,480			98,000			754,228			—			(4,773	)
Taxes, licenses & fees		18,740,629			284,596			17,498,941			935,887			9,316			11,889			—
Incr deferred acq expenses		5,382,897			—			8,862,341			(3,479,444	)		—			—			—
Other expenses		4,244,124			—			4,244,123			1			—			—			—
Total expenses	$	819,952,536		$	17,705,949		$	757,765,029		$	46,121,923		$	2,225,200		$	242,276		$	(4,107,841	)
Income before income taxes	$	172,068,681		$	11,243,488		$	145,914,402		$	13,132,456		$	814,158		$	428,529		$	535,648
Provision for income taxes:
Current operating income	$	36,443,952		$	3,406,871		$	31,617,921		$	953,701		$	322,879		$	142,580		$	—
Capital gains/losses		4,310,014			661,562			2,703,528			947,821			—			(2,897	)		—
Deferred		895,839			(5,331,071	)		3,407,423			2,628,721			4,088			(799	)		187,477
Total income tax	$	41,649,805		$	(1,262,638	)	$	37,728,872		$	4,530,243		$	326,967		$	138,884		$	187,477
Net income — current year	$	130,418,876		$	12,506,126		$	108,185,530		$	8,602,213		$	487,191		$	289,645		$	348,171
Net income — prior year	$	182,672,096		$	9,037,150		$	156,687,048		$	15,812,588		$	421,720		$	298,051		$	415,539
Change in net income		-28.6	%		38.4	%		-31.0	%		-45.6	%		15.5	%		-2.8	%

2007 Fourth-Quarter and Full-Year Financial Supplement 9

Cincinnati Financial Corporation
Consolidated Balance Sheets

(Dollars in millions except per share data)	December 31,			December 31,
	2007			2006
	(unaudited)
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2007—$5,783; 2006—$5,739) (includes securities pledged to creditors of $745 at December 31, 2007)	$	5,848		$	5,805
Equity securities, at fair value (cost: 2007—$2,975; 2006—$2,621)		6,249			7,799
Short-term investments, at fair value (amortized cost: 2007—$101; 2006—$95)		101			95
Other invested assets		63			60
Total investments		12,261			13,759
Cash and cash equivalents		226			202
Securities lending collateral		760			—
Investment income receivable		124			121
Finance receivable		92			108
Premiums receivable		1,107			1,128
Reinsurance receivable		754			683
Prepaid reinsurance premiums		13			13
Deferred policy acquisition costs		461			453
Land, building and equipment, net, for company use (accumulated depreciation: 2007—$276; 2006—$261)		239			193
Other assets		72			58
Separate accounts		528			504
Total assets	$	16,637		$	17,222
Liabilities
Insurance reserves
Losses and loss expense	$	3,967		$	3,896
Life policy reserves		1,478			1,409
Unearned premiums		1,564			1,579
Securities lending payable		760			—
Other liabilities		574			533
Deferred income tax		977			1,653
Notes payable		69			49
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		528			504
Total liabilities		10,708			10,414
Shareholders’ equity
Common stock, par value-$2 per share; authorized: 2007-500 million shares, 2006- 500 million shares; issued: 2007-196 million shares, 2006-196 million shares		393			391
Paid-in capital		1,049			1,015
Retained Earnings		3,404			2,786
Accumulated other comprehensive income		2,151			3,379
Treasury stock at cost (2007—30 million shares, 2006—23 million shares)		(1,068	)		(763	)
Total shareholders’ equity		5,929			6,808
Total liabilities and shareholders’ equity	$	16,637		$	17,222

2007 Fourth-Quarter and Full-Year Financial Supplement 10

Cincinnati Financial Corporation
10-Year Net Income Reconciliation

(Dollars in millions except per share data)	Years ended December 31,
	2007			2006			2005			2004			2003			2002			2001			2000			1999			1998
Net income	$	855		$	930		$	602		$	584		$	374		$	238		$	193		$	118		$	255		$	242
One-time item		—			—			—			—			15			—			—			(25	)		—			—
Net income before one-time item		855			930			602			584			359			238			193			143			255			242
Net realized investment gains and losses		245			434			40			60			(27	)		(62	)		(17	)		(2	)		—			43
Operating income before one-time item		610			496			562			524			386			300			210			145			255			199
Less catastrophe losses		(17	)		(113	)		(82	)		(96	)		(63	)		(57	)		(42	)		(33	)		(24	)		(61	)
Operating income before catastrophe losses and one-time item	$	627		$	609		$	644		$	620		$	449		$	357		$	252		$	178		$	279		$	260
Diluted per share data
Net income	$	4.97		$	5.30		$	3.40		$	3.28		$	2.10		$	1.32		$	1.07		$	0.67		$	1.37		$	1.28
One-time item		—			—			—			—			0.09			—			—			(0.14	)		—			—
Net income before one-time item		4.97			5.30			3.40			3.28			2.01			1.32			1.07			0.81			1.37			1.28
Net realized investment gains and losses		1.43			2.48			0.23			0.34			(0.15	)		(0.35	)		(0.10	)		(0.01	)		—			0.23
Operating income before one-time item		3.54			2.82			3.17			2.94			2.16			1.67			1.17			0.82			1.37			1.05
Less catastrophe losses		(0.10	)		(0.65	)		(0.46	)		(0.54	)		(0.35	)		(0.31	)		(0.23	)		(0.18	)		(0.13	)		(0.32	)
Operating income before catastrophe losses and one-time item	$	3.64		$	3.47		$	3.63		$	3.48		$	2.51		$	1.98		$	1.40		$	1.00		$	1.50		$	1.37
Return on equity
Return on average equity		13.4	%		14.4	%		9.8	%		9.4	%		6.3	%		4.1	%		3.2	%		2.1	%		4.6	%		4.7	%
One-time item		—			—			—			—			(0.3	)		—			—			0.4			—			—
Return on average equity before one-time item		13.4	%		14.4	%		9.8	%		9.4	%		6.0	%		4.1	%		3.2	%		2.5	%		4.6	%		4.7	%
Return on equity based on comprehensive income
ROE based on comprehensive income		(5.9	)%		16.4	%		1.6	%		4.6	%		13.8	%		(4.0	)%		2.5	%		13.1	%		1.9	%		19.6	%
One-time item		—			—			—			—			(0.3	)		—			—			0.4			—			—
ROE based on comprehensive income before one-time item		(5.9	)%		16.4	%		1.6	%		4.6	%		13.5	%		(4.0	)%		2.5	%		13.5	%		1.9	%		19.6	%
Investment income
Investment income, net of expenses	$	608		$	570		$	526		$	492		$	465		$	445		$	421		$	415		$	387		$	368
BOLI		—			—			—			—			—			—			—			(5	)		—			—
Investment income before BOLI	$	608		$	570		$	526		$	492		$	465		$	445		$	421		$	410		$	387		$	368

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

2007 Fourth-Quarter and Full-Year Financial Supplement 11

Cincinnati Financial Corporation
Quarterly Net Income Reconciliation

(In millions except per share data)	Three months ended																							Six months ended						Nine months ended						Twelve months ended
	12/31/07		9/30/07			6/30/07			3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07			6/30/06			9/30/07			9/30/06			12/31/07			12/31/06
Net income	$	187	$	124		$	351		$	194		$	130		$	115		$	132		$	552		$	545		$	684		$	669		$	800		$	855		$	930
Net realized investment gains and losses		8		10			187			41			8			—			6			421			228			426			238			427			245			434
Operating income		179		114			164			153			122			115			126			131			317			258			431			373			610			496
Less catastrophe losses		1		(9	)		(7	)		(2	)		(29	)		(18	)		(41	)		(26	)		(9	)		(67	)		(18	)		(85	)		(17	)		(113	)
Operating income before catastrophe losses	$	178	$	123		$	171		$	155		$	151		$	133		$	167		$	157		$	326		$	325		$	449		$	458		$	627		$	609
Diluted per share data
Net income	$	1.11	$	0.72		$	2.02		$	1.11		$	0.75		$	0.66		$	0.76		$	3.13		$	3.13		$	3.90		$	3.86		$	4.56		$	4.97		$	5.30
Net realized investment gains and losses		0.04		0.06			1.08			0.23			0.05			—			0.04			2.39			1.31			2.43			1.37			2.43			1.43			2.48
Operating income		1.07		0.66			0.94			0.88			0.70			0.66			0.72			0.74			1.82			1.47			2.49			2.13			3.54			2.82
Less catastrophe losses		0.01		(0.05	)		(0.04	)		(0.01	)		(0.16	)		(0.10	)		(0.24	)		(0.14	)		(0.05	)		(0.38	)		(0.10	)		(0.48	)		(0.10	)		(0.65	)
Operating income before catastrophe losses	$	1.06	$	0.71		$	0.98		$	0.89		$	0.86		$	0.76		$	0.96		$	0.88		$	1.87		$	1.85		$	2.59		$	2.61		$	3.64		$	3.47

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.

2007 Fourth-Quarter and Full-Year Financial Supplement 12

Cincinnati Financial Corporation
Top Holdings — Common Stocks

(Dollars in millions)	As of and for twelve months ended December 31, 2007
								Earned
	Actual		Fair		Percent of			dividend
	cost		value		fair value			income
Fifth Third Bancorp	$	185	$	1,691		28.1	%	$	121
The Procter & Gamble Company		206		552		9.2			10
Exxon Mobil Corporation		58		484		8.0			8
U.S. Bancorp		270		332		5.5			16
PNC Financial Services Group, Inc.		62		309		5.1			12
AllianceBernstein Holding L.P.		113		295		4.9			17
Johnson & Johnson		218		267		4.5			6
Wyeth		62		196		3.3			5
Wells Fargo & Company		128		194		3.2			7
Huntington Bancshares Inc		188		152		2.5			4
Piedmont Natural Gas Company, Inc.		64		147		2.4			6
Wachovia Corp		186		140		2.3			6
National City Corporation		132		140		2.3			16
Chevron Corporation		56		123		2.1			3
General Electric Co.		106		116		1.9			3
All other common stock holdings		681		882		14.7			31
Total	$	2,715	$	6,020		100.0	%	$	271

2007 Fourth-Quarter and Full-Year Financial Supplement 13

Cincinnati Financial Corporation Subsidiaries
Selected Balance Sheet Data

(Dollars in millions)	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 Property Casualty Group
Fixed Maturities and Equities (Fair Value)	$	8,940	$	9,586	$	9,850		$	9,837	$	9,882	$	9,393	$	8,987		$	9,261
Fixed Maturities — Pretax Net Unrealized Gain (Loss)		58		23		(30	)		44		47		51		(55	)		2
Equities — Pretax Net Unrealized Gain (Loss)		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
Surplus — STAT		4,306		4,782		4,937			4,741		4,750		4,607		4,342			4,334
The Cincinnati Life Insurance Company
Fixed Maturities and Equities (Fair Value)	$	1,887	$	1,952	$	1,922		$	1,938	$	1,916	$	1,893	$	1,803		$	1,827
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
Retained Earnings — GAAP		685		724		730			739		719		688		652			666
Surplus — STAT		477		485		491			483		479		461		459			470
		12/31/2005		9/30/2005		6/30/2005			3/31/2005		12/31/2004		9/30/2004		6/30/2004			3/31/2004
Cincinnati Insurance Property Casualty Group
Fixed Maturities and Equities (Fair Value)	$	8,947	$	8,833	$	8,802		$	8,710	$	8,806	$	8,523	$	6,599		$	6,882
Fixed Maturities — Pretax Net Unrealized Gain (Loss)		50		86		152			99		188		158		84			190
Equities — Pretax Net Unrealized Gain (Loss)		2,803		2,807		2,903			2,931		3,135		1,746		1,740			1,924
Loss and Loss Expense Reserves — STAT		3,111		3,150		3,065			3,031		2,977		3,036		2,952			2,901
Surplus — STAT		4,220		4,224		4,180			4,065		4,196		4,037		2,871			2,791
The Cincinnati Life Insurance Company
Fixed Maturities and Equities (Fair Value)	$	1,788	$	1,797	$	1,748		$	1,688	$	1,637	$	1,695	$	1,637		$	1,652
Fixed Maturities — Pretax Net Unrealized Gain (Loss)		31		45		70			53		82		76		49			94
Equities — Pretax Net Unrealized Gain (Loss)		266		274		275			257		274		261		252			266
Retained Earnings — GAAP		651		348		655			622		639		612		584			610
Surplus — STAT		451		447		447			440		439		409		401			395

2007 Fourth-Quarter and Full-Year Financial Supplement 14

Cincinnati Insurance Group
GAAP Statements of Income

	For the Three Months Ended December 31,												For the Twelve Months Ended December 31,
	2007			2006			Change			% Change			2007			2006			Change			% Change
Revenues:
Premiums earned:
Property casualty	$	821,196,485		$	845,479,506		$	(24,283,021	)		(2.87	)	$	3,299,384,836		$	3,321,610,148		$	(22,225,312	)		(0.67	)
Life		—			—			—			—			—			—			—			—
Accident health		—			—			—			—			—			—			—			—
Premiums ceded		(44,194,344	)		(43,501,451	)		(692,893	)		1.59			(174,551,071	)		(157,587,693	)		(16,963,378	)		10.76
Total premiums earned		777,002,141			801,978,055			(24,975,914	)		(3.11	)		3,124,833,765			3,164,022,455			(39,188,690	)		(1.24	)
Investment income		100,841,548			93,654,263			7,187,285			7.67			392,580,307			367,304,753			25,275,554			6.88
Realized gain on investments		29,802,182			7,323,470			22,478,712			306.94			232,176,239			225,846,088			6,330,151			2.80
Other income		1,350,240			723,643			626,597			86.59			4,661,137			3,266,830			1,394,307			42.68
Total revenues	$	908,996,111		$	903,679,431		$	5,316,680			0.59		$	3,754,251,448		$	3,760,440,126		$	(6,188,678	)		(0.16	)
Benefits & expenses:
Losses & policy benefits	$	415,795,751		$	507,755,637		$	(91,959,886	)		(18.11	)	$	1,939,058,201		$	2,085,421,315		$	(146,363,114	)		(7.02	)
Reinsurance recoveries		(20,512,028	)		(5,484,567	)		(15,027,461	)		274.00			(106,882,598	)		(77,446,382	)		(29,436,216	)		38.01
Commissions		158,923,102			144,113,098			14,810,004			10.28			598,432,647			596,188,393			2,244,254			0.38
Other operating expenses		77,236,002			80,278,976			(3,042,974	)		(3.79	)		302,566,198			292,709,156			9,857,042			3.37
Interest expense		—			496,480			(496,480	)		—			—			888,930			(888,930	)		—
Taxes, licenses & fees		17,073,630			17,498,941			(425,311	)		(2.43	)		70,051,616			72,695,021			(2,643,405	)		(3.64	)
Incr deferred acq expense		11,031,989			8,862,341			2,169,648			24.48			2,749,119			(3,642,356	)		6,391,475			(175.48	)
Other expenses		5,396,854			4,244,123			1,152,731			27.16			14,436,827			16,341,980			(1,905,153	)		(11.66	)
Total expenses	$	664,945,300		$	757,765,029		$	(92,819,729	)		(12.25	)	$	2,820,412,010		$	2,983,156,057		$	(162,744,047	)		(5.46	)
Income before income taxes	$	244,050,811		$	145,914,402		$	98,136,409			67.26		$	933,839,438		$	777,284,069		$	156,555,369			20.14
Provision for income taxes:
Current operating income	$	58,411,169		$	31,617,921		$	26,793,248			84.74		$	195,217,396		$	147,254,816		$	47,962,580			32.57
Current realized investments gains and losses		10,714,301			2,703,528			8,010,773			296.31			82,554,324			80,218,693			2,335,631			2.91
Deferred		943,019			3,407,423			(2,464,404	)		(72.32	)		(13,769,174	)		(8,069,068	)		(5,700,106	)		70.64
Total income taxes	$	70,068,489		$	37,728,872		$	32,339,617			85.72		$	264,002,546		$	219,404,441		$	44,598,105			20.33
Net income	$	173,982,322		$	108,185,530		$	65,796,792			60.82		$	669,836,892		$	557,879,628		$	111,957,264			20.07

2007 Fourth-Quarter and Full-Year Financial Supplement 15

Cincinnati Insurance Group
Statutory Statements of Income

	For the Three Months Ended December 31,									For the Twelve Months Ended December 31,
	2007			2006			% Change			2007			2006		% Change
Underwriting income
Net premiums written	$	724,187,641		$	755,245,797			(4.11	)	$	3,116,514,912		$	3,178,105,582		(1.94	)
Unearned premiums increase		(52,814,420	)		(46,732,257	)		13.01			(8,318,774	)		14,083,124		(159.07	)
Earned premiums		777,002,061			801,978,054			(3.11	)		3,124,833,686			3,164,022,457		(1.24	)
Losses incurred	$	291,512,942		$	379,133,413			(23.11	)	$	1,457,860,156		$	1,640,711,403		(11.14	)
Allocated loss expenses incurred		62,766,784			71,979,236			(12.80	)		195,930,636			183,420,723		6.82
Unallocated loss expenses incurred		41,003,996			51,158,422			(19.85	)		178,384,811			183,842,807		(2.97	)
Other underwriting expenses incurred		260,736,489			246,289,916			5.87			972,581,974			948,113,154		2.58
Workers compensation dividend incurred		7,035,552			5,135,756			36.99			15,087,864			17,343,175		(13.00	)
Total underwriting deductions	$	663,055,764		$	753,696,744			(12.03	)	$	2,819,845,441		$	2,973,431,262		(5.17	)
Net underwriting gain (loss)	$	113,946,297		$	48,281,310			136.00		$	304,988,244		$	190,591,195		60.02
Investment income
Gross investment income earned	$	100,164,635		$	94,867,708			5.58		$	396,757,569		$	371,912,860		6.68
Net investment income earned		100,375,194			93,654,263			7.18			391,822,759			367,304,753		6.68
Net realized capital gains		22,573,145			4,677,265			382.61			157,929,417			146,526,143		7.78
Net investment gains (excl. subs)	$	122,948,339		$	98,331,529			25.03		$	549,752,176		$	513,830,897		6.99
Dividend from subsidiary		—			12,000,000			—			—			26,000,000		—
Net investment gains	$	122,948,339		$	110,331,529			11.44		$	549,752,176		$	539,830,897		1.84
Other income	$	1,165,955		$	618,259			88.59		$	3,960,135		$	2,488,123		59.16
Net income before federal income taxes	$	238,060,591		$	159,231,098			49.51		$	858,700,555		$	732,910,214		17.16
Federal and foreign income taxes incurred	$	55,496,700		$	30,398,414			82.56		$	186,877,064		$	143,561,772		30.17
Net income (statutory)	$	182,563,891		$	128,832,684			41.71		$	671,823,492		$	589,348,442		13.99

* 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.

2007 Fourth-Quarter and Full-Year Financial Supplement 16

Cincinnati Insurance Group — Consolidated
Statutory Quarterly Analysis
(Based on reported data — see Page 27 for adjusted data)

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended							Twelve months ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07			6/30/06			9/30/07			9/30/06				12/31/07			12/31/06
Net premiums written	$	724		$	736		$	810		$	846		$	755		$	780		$	814		$	829		$	1,656		$	1,643		$	2,393		$	2,422			$	3,117		$	3,178
Net premiums earned	$	777		$	777		$	786		$	785		$	802		$	791		$	793		$	778		$	1,571		$	1,570		$	2,348		$	2,362			$	3,125		$	3,164
Losses paid	$	375		$	363		$	380		$	365		$	375		$	367		$	381		$	347		$	744		$	727		$	1,107		$	1,094			$	1,481		$	1,469
Loss reserve change		(83	)		69			(16	)		6			4			66			59			42			(9	)		101			60			168				(24	)		172
Total losses incurred	$	292		$	432		$	364		$	371		$	379		$	433		$	440		$	389		$	735		$	828		$	1,167		$	1,262			$	1,457		$	1,641
Allocated loss expense paid		37			29			33			31			37			33			31			28			65			58			94			91				131			127
Allocated loss expense reserve change		26			15			16			8			35			7			7			5			24			13			39			20				65			56
Total allocated loss expense incurred	$	63		$	44		$	49		$	39		$	72		$	40		$	38		$	33		$	89		$	71		$	133		$	111			$	196		$	183
Unallocated loss expense paid		46			44			41			46			49			40			38			40			87			78			132			118				178			167
Unallocated loss expense reserve change		(6	)		4			1			2			2			3			2			10			3			12			6			15				2			17
Total unallocated loss expense incurred	$	40		$	48		$	42		$	48		$	51		$	43		$	40		$	50		$	90		$	90		$	138		$	133			$	180		$	184
Underwriting expenses incurred		267			230			242			249			251			243			231			239			489			471			719			714				988			965
Underwriting profit (loss)	$	115		$	23		$	89		$	78		$	49		$	32		$	44		$	67		$	168		$	110		$	191		$	142			$	304		$	191
Ratio Data
Loss ratio		37.5	%		55.6	%		46.3	%		47.2	%		47.3	%		54.8	%		55.4	%		50.0	%		46.8	%		52.7	%		49.7	%		53.4	%			46.7	%		51.9	%
Allocated loss expense ratio		8.1			5.7			6.3			5.0			9.0			5.0			4.8			4.3			5.7			4.6			5.7			4.7				6.3			5.8
Unallocated loss expense ratio		5.3			6.1			5.3			6.1			6.4			5.4			5.1			6.4			5.7			5.7			5.8			5.6				5.7			5.8
Net underwriting expense ratio		37.0			31.3			29.8			29.4			33.2			31.2			28.4			29.0			29.5			28.7			30.1			29.5				31.7			30.4
Statutory combined ratio		87.9	%		98.7	%		87.7	%		87.7	%		95.9	%		96.4	%		93.7	%		89.7	%		87.7	%		91.7	%		91.3	%		93.2	%			90.4	%		93.9	%
Statutory combined ratio excluding catastrophes		88.1	%		97.0	%		86.3	%		87.3	%		90.4	%		92.9	%		85.7	%		84.6	%		86.8	%		85.2	%		90.1	%		87.7	%			89.5	%		88.4	%
Loss Detail
New losses $250,000-$500,000	$	29		$	24		$	22		$	23		$	21		$	22		$	21		$	23		$	45		$	44		$	69		$	66			$	98		$	87
New losses $500,000-$750,000		16			14			15			15			14			16			11			9			30			20			44			36				60			50
New losses $750,000-$1,000,000		13			9			9			10			10			11			9			7			19			16			28			27				41			37
New losses $1,000,000-$2,000,000		24			26			26			28			25			25			22			9			54			31			80			56				104			81
New losses $2,000,000-$4,000,000		36			50			17			22			37			35			22			23			39			45			89			80				125			117
New losses greater than $4,000,000		—			5			—			—			—			—			—			—			—			—			5			—				5			—
Case reserve development above $250,000		68			50			48			53			64			51			59			50			101			109			151			160				219			224
Large losses subtotal	$	186		$	178		$	137		$	151		$	171		$	160		$	144		$	121		$	288		$	265		$	466		$	425			$	652		$	596
IBNR incurred		(43	)		—			7			7			(57	)		11			(5	)		6			15			1			15			11				(25	)		(47	)
Catastrophe losses incurred		(2	)		13			11			3			44			27			64			39			15			103			28			131				26			175
Remaining incurred		151			241			209			210			221			235			237			223			417			459			658			695				804			917
Total losses incurred	$	292		$	432		$	364		$	371		$	379		$	433		$	440		$	389		$	735		$	828		$	1,167		$	1,262			$	1,457		$	1,641
Loss Ratio
New losses $250,000-$500,000		3.7	%		3.1	%		2.8	%		2.9	%		2.6	%		2.8	%		2.6	%		3.0	%		2.9	%		2.8	%		2.9	%		2.8	%			3.1	%		2.7	%
New losses $500,000-$750,000		2.1			1.8			1.9			1.9			1.7			2.0			1.5			1.2			1.9			1.3			1.9			1.5				1.9			1.6
New losses $750,000-$1,000,000		1.7			1.2			1.1			1.3			1.2			1.4			1.2			0.9			1.2			1.0			1.2			1.1				1.3			1.2
New losses $1,000,000-$2,000,000		3.1			3.3			3.3			3.6			3.1			3.2			2.8			1.2			3.4			2.1			3.4			2.4				3.3			2.6
New losses $2,000,000-$4,000,000		4.6			6.4			2.2			2.8			4.6			4.4			2.8			3.0			2.5			2.9			3.8			3.4				4.0			3.7
New losses greater than $4,000,000		—			0.6			—			—			—			—			—			—			—			—			0.2			—				0.2			—
Case reserve development above $250,000		8.8			6.4			6.1			6.8			8.0			6.3			7.4			6.4			6.4			6.9			6.4			6.8				7.0			7.1
Large losses subtotal		23.9	%		22.9	%		17.4	%		19.2	%		21.3	%		20.1	%		18.4	%		15.6	%		18.3	%		17.0	%		19.8	%		18.0	%			20.9	%		18.8	%
IBNR incurred		(5.5	)		—			0.9			1.0			(7.2	)		1.3			(0.6	)		0.8			0.9			0.1			0.6			0.5				(0.9	)		(1.4	)
Total catastrophe losses incurred		(0.2	)		1.7			1.4			0.4			5.5			3.5			8.0			5.0			0.9			6.5			1.2			5.5		��		0.8			5.5
Remaining incurred		19.3			31.0			26.6			26.6			27.7			29.9			29.6			28.6			26.7			29.1			28.1			29.4				25.9			29.0
Total loss ratio		37.5	%		55.6	%		46.3	%		47.2	%		47.3	%		54.8	%		55.4	%		50.0	%		46.8	%		52.7	%		49.7	%		53.4	%			46.7	%		51.9	%
Loss Claim Count
New losses $250,000-$500,000		88			75			67			72			64			66			62			72			139			134			214			200				302			264
New losses $500,000-$750,000		27			25			26			24			22			27			18			15			50			33			75			60				102			82
New losses $750,000-$1,000,000		16			11			11			12			12			12			11			8			23			19			34			31				50			43
New losses $1,000,000-$2,000,000		18			21			21			21			21			20			16			7			42			23			63			43				81			64
New losses $2,000,000-$4,000,000		12			16			5			7			11			12			7			7			12			14			28			26				40			37
New losses greater than $4,000,000		—			1			—			—			—			—			—			—			—			—			1			—				1			—
Case reserve development above $250,000		112			93			82			93			94			101			101			84			175			185			268			286				380			380
Large losses total		273			242			212			229			224			238			215			193			441			408			683			646				956			870

*	Dollar amounts shown are rounded to 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.

2007 Fourth-Quarter and Full-Year Financial Supplement 17

Cincinnati Insurance Group — Commercial Lines
Statutory Quarterly Analysis
(Based on reported data — see Page 28 for adjusted data)

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07			6/30/06			9/30/07			9/30/06			12/31/07			12/31/06
Net premiums written	$	562		$	544		$	613		$	693		$	589		$	582		$	603		$	668		$	1,306		$	1,271		$	1,851		$	1,852		$	2,413		$	2,442
Net premiums earned	$	601		$	600		$	606		$	604		$	619		$	602		$	599		$	582		$	1,210		$	1,181		$	1,810		$	1,783		$	2,411		$	2,402
Losses paid	$	272		$	253		$	270		$	259		$	256		$	247		$	251		$	234		$	530		$	485		$	783		$	732		$	1,055		$	988
Loss reserve change		(53	)		66			(12	)		23			5			63			53			53			11			105			77			169			23			174
Total losses incurred	$	219		$	319		$	258		$	282		$	261		$	310		$	304		$	287		$	541		$	590		$	860		$	901		$	1,078		$	1,162
Allocated loss expense paid		33			26			30			28			33			29			28			25			58			52			84			81			117			114
Allocated loss expense reserve change		27			16			16			8			37			7			6			5			24			12			40			19			67			56
Total allocated loss expense incurred	$	60		$	42		$	46		$	36		$	70		$	36		$	34		$	30		$	82		$	64		$	124		$	100		$	184		$	170
Unallocated loss expense paid		34			31			30			33			34			27			27			28			63			54			94			82			128			116
Unallocated loss expense reserve change		(3	)		4			1			3			3			3			2			10			4			13			8			15			5			18
Total unallocated loss expense incurred	$	31		$	35		$	31		$	36		$	37		$	30		$	29		$	38		$	67		$	67		$	102		$	97		$	133		$	134
Underwriting expenses incurred		215			170			179			193			194			184			171			177			371			349			541			532			757			726
Underwriting profit (loss)	$	76		$	34		$	92		$	57		$	57		$	42		$	61		$	50		$	149		$	111		$	183		$	153		$	259		$	210
Ratio Data
Loss ratio		36.4	%		53.2	%		42.6	%		46.8	%		42.2	%		51.5	%		50.7	%		49.2	%		44.7	%		50.0	%		47.5	%		50.5	%		44.8	%		48.4	%
Allocated loss expense ratio		9.9			7.0			7.6			5.9			11.3			6.0			5.7			5.1			6.8			5.4			6.8			5.6			7.6			7.0
Unallocated loss expense ratio		5.2			5.8			5.1			5.9			6.0			5.0			4.9			6.5			5.5			5.7			5.6			5.4			5.5			5.6
Net underwriting expense ratio		38.2			31.2			29.1			27.9			32.9			31.6			28.3			26.7			28.4			27.4			29.3			28.8			31.4			29.7
Statutory combined ratio		89.7	%		97.2	%		84.4	%		86.5	%		92.4	%		94.1	%		89.6	%		87.5	%		85.4	%		88.5	%		89.2	%		90.3	%		89.3	%		90.7	%
Statutory combined ratio excluding catastrophes		89.7	%		97.1	%		83.6	%		84.7	%		90.6	%		91.7	%		84.1	%		82.4	%		84.1	%		83.2	%		88.3	%		86.0	%		88.6	%		87.1	%
Loss Detail
New losses $250,000-$500,000	$	21		$	18		$	16		$	18		$	17		$	17		$	15		$	15		$	34		$	30		$	52		$	47		$	73		$	64
New losses $500,000-$750,000		14			11			12			12			10			12			10			8			24			18			35			30			49			40
New losses $750,000-$1,000,000		11			8			6			9			10			7			6			5			15			11			23			18			34			28
New losses $1,000,000-$2,000,000		19			25			23			23			21			21			19			7			46			26			71			47			90			68
New losses $2,000,000-$4,000,000		34			43			13			22			37			30			20			23			35			43			78			73			112			110
New losses greater than $4,000,000		—			5			—			—			—			—			—			—			—			—			5			—			5			—
Case reserve development above $250,000		60			45			46			49			58			46			52			45			95			97			140			143			200			201
Large losses subtotal	$	159		$	155		$	116		$	133		$	153		$	133		$	122		$	103		$	249		$	225		$	404		$	358		$	563		$	511
IBNR incurred		(29	)		—			6			7			(45	)		10			(6	)		6			14			—			14			10			(12	)		(36	)
Catastrophe losses incurred		—			1			5			10			11			14			34			29			16			63			17			77			16			89
Remaining incurred		89			163			131			132			142			153			154			149			262			302			425			456			511			598
Total losses incurred	$	219		$	319		$	258		$	282		$	261		$	310		$	304		$	287		$	541		$	590		$	860		$	901		$	1,078		$	1,162
Loss Ratio
New losses $250,000-$500,000		3.4	%		3.0	%		2.6	%		2.8	%		2.5	%		2.8	%		2.6	%		2.6	%		2.7	%		2.5	%		2.9	%		2.8	%		2.9	%		2.7	%
New losses $500,000-$750,000		2.2			1.8			2.0			2.0			1.5			2.0			1.8			1.4			2.0			1.5			1.9			1.9			2.0			1.7
New losses $750,000-$1,000,000		1.8			1.3			1.0			1.5			1.5			1.2			1.0			0.9			1.2			0.9			1.3			1.1			1.4			1.2
New losses $1,000,000-$2,000,000		3.2			4.2			3.8			3.8			3.5			3.5			3.3			1.2			3.8			2.2			3.9			2.6			3.7			2.8
New losses $2,000,000-$4,000,000		5.7			7.2			2.1			3.6			6.2			5.0			3.3			4.0			2.9			3.7			4.3			4.2			4.5			4.6
New losses greater than $4,000,000		—			0.8			—			—			—			—			—			—			—			—			0.3			—			0.2			—
Case reserve development above $250,000		10.1			7.5			7.6			8.1			9.4			7.6			8.7			7.6			7.8			8.2			7.6			7.5			8.3			8.4
Large losses subtotal		26.4	%		25.8	%		19.1	%		21.8	%		24.6	%		22.1	%		20.7	%		17.6	%		20.4	%		19.2	%		22.2	%		20.2	%		23.2	%		21.3	%
IBNR incurred		(4.8	)		—			1.0			1.2			(7.3	)		1.7			(1.0	)		0.9			1.1			—			0.8			0.6			(0.5	)		(1.5	)
Total catastrophe losses incurred		—			0.2			0.8			1.8			1.9			2.4			5.6			5.2			1.3			5.3			0.9			4.3			0.7			3.7
Remaining incurred		14.8			27.2			21.7			22.0			23.0			25.3			25.4			25.5			21.9			25.5			23.6			25.4			21.4			24.9
Total loss ratio		36.4	%		53.2	%		42.6	%		46.8	%		42.2	%		51.5	%		50.7	%		49.2	%		44.7	%		50.0	%		47.5	%		50.5	%		44.8	%		48.4	%
Loss Claim Count
New losses $250,000-$500,000		64			57			49			57			50			51			46			48			106			94			163			145			227			195
New losses $500,000-$750,000		23			20			21			20			16			21			17			14			41			31			61			52			84			68
New losses $750,000-$1,000,000		13			9			7			11			12			8			7			6			18			13			27			21			40			33
New losses $1,000,000-$2,000,000		14			20			19			17			18			17			14			5			36			19			56			36			70			54
New losses $2,000,000-$4,000,000		11			14			4			7			11			10			6			7			11			13			25			23			36			34
New losses greater than $4,000,000		—			1			—			—			—			—			—			—			—			—			1			—			1			—
Case reserve development above $250,000		96			80			75			85			81			88			89			72			160			161			240			249			336			330
Large losses total		221			201			175			197			188			195			179			152			372			331			573			526			794			714

*	Dollar amounts shown are rounded to 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.

2007 Fourth-Quarter and Full-Year Financial Supplement 18

Cincinnati Insurance Group — Personal Lines
Statutory Quarterly Analysis
(Based on reported data — see Page 29 for adjusted data)

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07			6/30/06			9/30/07			9/30/06			12/31/07			12/31/06
Net premiums written	$	162		$	192		$	197		$	153		$	166		$	198		$	211		$	161		$	350		$	372		$	542		$	570		$	704		$	736
Net premiums earned	$	176		$	177		$	180		$	181		$	183		$	189		$	194		$	196		$	361		$	389		$	538		$	579		$	714		$	762
Losses paid	$	103		$	110		$	110		$	105		$	119		$	120		$	130		$	113		$	214		$	242		$	324		$	362		$	426		$	481
Loss reserve change		(30	)		3			(4	)		(17	)		(1	)		3			6			(11	)		(20	)		(4	)		(17	)		(1	)		(47	)		(2	)
Total losses incurred	$	73		$	113		$	106		$	88		$	118		$	123		$	136		$	102		$	194		$	238		$	307		$	361		$	379		$	479
Allocated loss expense paid		4			3			3			3			4			4			3			3			7			6			10			10			14			13
Allocated loss expense reserve change		(1	)		(1	)		—			—			(2	)		—			1			—			—			1			(1	)		1			(2	)		—
Total allocated loss expense incurred	$	3		$	2		$	3		$	3		$	2		$	4		$	4		$	3		$	7		$	7		$	9		$	11		$	12		$	13
Unallocated loss expense paid		12			13			11			13			15			13			11			12			24			24			38			36			50			51
Unallocated loss expense reserve change		(3	)		—			—			(1	)		(1	)		—			—			—			(1	)		(1	)		(2	)		—			(3	)		(1	)
Total unallocated loss expense incurred	$	9		$	13		$	11		$	12		$	14		$	13		$	11		$	12		$	23		$	23		$	36		$	36		$	47		$	50
Underwriting expenses incurred		52			60			63			56			57			59			60			62			118			122			178			182			231			239
Underwriting profit (loss)	$	39		$	(11	)	$	(3	)	$	22		$	(8	)	$	(10	)	$	(17	)	$	17		$	19		$	(1	)	$	8		$	(11	)	$	45		$	(19	)
Ratio Data
Loss ratio		41.3	%		63.8	%		58.6	%		48.9	%		64.4	%		65.1	%		70.0	%		52.2	%		53.8	%		61.1	%		57.1	%		62.4	%		53.2	%		62.9	%
Allocated loss expense ratio		1.8			1.4			1.9			1.8			1.2			1.9			2.1			1.7			1.9			1.9			1.7			2.0			1.7			1.7
Unallocated loss expense ratio		5.5			7.3			6.2			6.6			7.8			6.6			5.8			6.2			6.4			6.0			6.7			6.1			6.4			6.6
Net underwriting expense ratio		32.8			31.1			31.9			36.2			34.3			30.4			28.5			38.0			33.7			32.6			32.8			31.8			32.8			32.4
Statutory combined ratio		81.4	%		103.6	%		98.6	%		93.5	%		107.7	%		104.0	%		106.4	%		98.1	%		95.8	%		101.6	%		98.3	%		102.3	%		94.1	%		103.6	%
Statutory combined ratio excluding catastrophes		82.4	%		96.6	%		95.1	%		97.6	%		89.8	%		97.0	%		90.8	%		93.1	%		96.1	%		91.3	%		96.2	%		93.0	%		92.8	%		92.3	%
Loss Detail
New losses $250,000-$500,000	$	8		$	6		$	6		$	5		$	4		$	5		$	6		$	8		$	11		$	14		$	17		$	19		$	25		$	23
New losses $500,000-$750,000		2			3			3			3			4			4			1			1			6			2			9			6			11			10
New losses $750,000-$1,000,000		2			1			3			1			—			4			3			2			4			5			5			9			7			9
New losses $1,000,000-$2,000,000		5			1			3			5			4			4			3			2			8			5			9			9			14			13
New losses $2,000,000-$4,000,000		2			7			4			—			—			5			2			—			4			2			11			7			13			7
New losses greater than $4,000,000		—			—			—			—			—			—			—			—			—			—			—			—			—			—
Case reserve development above $250,000		8			5			2			4			6			5			7			5			6			12			11			17			19			23
Large losses subtotal	$	27		$	23		$	21		$	18		$	18		$	27		$	22		$	18		$	39		$	40		$	62		$	67		$	89		$	85
IBNR incurred		(14	)		—			1			—			(12	)		1			1			—			1			1			1			1			(13	)		(11	)
Catastrophe losses incurred		(2	)		12			6			(7	)		33			13			30			10			(1	)		40			11			54			10			86
Remaining incurred		62			78			78			77			79			82			83			74			155			157			233			239			293			319
Total losses incurred	$	73		$	113		$	106		$	88		$	118		$	123		$	136		$	102		$	194		$	238		$	307		$	361		$	379		$	479
Loss Ratio
New losses $250,000-$500,000		4.5	%		3.4	%		3.3	%		3.0	%		2.3	%		2.4	%		2.7	%		4.1	%		3.1	%		3.6	%		3.3	%		3.0	%		3.6	%		2.8	%
New losses $500,000-$750,000		1.1			1.7			1.7			1.9			2.2			1.9			0.4			0.5			1.8			0.5			1.7			0.9			1.5			1.1
New losses $750,000-$1,000,000		1.1			0.6			1.7			0.7			—			2.0			1.3			1.0			1.1			1.3			0.9			1.5			1.0			1.0
New losses $1,000,000-$2,000,000		2.8			0.6			1.7			3.0			2.2			2.2			2.0			1.0			2.3			1.3			1.7			1.8			2.0			2.0
New losses $2,000,000-$4,000,000		1.0			4.1			2.2			—			—			2.7			1.4			—			1.1			0.5			2.1			1.3			1.8			1.0
New losses greater than $4,000,000		—			—			—			—			—			—			—			—			—			—			—			—			—			—
Case reserve development above $250,000		4.4			2.9			1.2			2.2			3.4			2.2			3.5			2.6			1.8			3.1			2.1			2.9			2.7			3.0
Large losses subtotal		15.1	%		13.2	%		11.8	%		10.6	%		10.0	%		13.6	%		11.4	%		9.2	%		11.2	%		10.3	%		11.8	%		11.4	%		12.6	%		11.0	%
IBNR incurred		(7.8	)		—			0.4			—			(6.8	)		0.1			0.7			—			0.2			0.3			0.1			0.3			(1.8	)		(1.4	)
Total catastrophe losses incurred		(1.0	)		7.0			3.5			(4.1	)		17.9			7.1			15.6			5.0			(0.3	)		10.3			2.1			9.3			1.3			11.3
Remaining incurred		35.0			43.6			42.9			42.4			43.3			44.3			42.3			38.0			42.7			40.2			43.1			41.4			41.1			42.0
Total loss ratio		41.3	%		63.8	%		58.6	%		48.9	%		64.4	%		65.1	%		70.0	%		52.2	%		53.8	%		61.1	%		57.1	%		62.4	%		53.2	%		62.9	%
Loss Claim Count
New losses $250,000-$500,000		24			18			18			15			14			15			16			24			33			40			51			55			75			69
New losses $500,000-$750,000		4			5			5			4			6			6			1			1			9			2			14			8			18			14
New losses $750,000-$1,000,000		3			2			4			1			—			4			4			2			5			6			7			10			10			10
New losses $1,000,000-$2,000,000		4			1			2			4			3			3			2			2			6			4			7			7			11			10
New losses $2,000,000-$4,000,000		1			2			1			—			—			2			1			—			1			1			3			3			4			3
New losses greater than $4,000,000		—			—			—			—			—			—			—			—			—			—			—			—			—			—
Case reserve development above $250,000		16			13			7			8			13			13			12			12			15			24			28			37			44			50
Large losses total		52			41			37			32			36			43			36			41			69			77			110			120			162			156

*	Dollar amounts shown are rounded to 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.

2007 Fourth-Quarter and Full-Year Financial Supplement 19

Cincinnati Insurance Group
Direct Written Premiums by Risk State by Line of Business for the Twelve Months Ended December 31, 2007

(Dollars in millions)
																							12/31/2007		12/31/2006		Commercial			Personal			Total
	Comm		Comm		Comm		Workers’			Specialty		Surety &		Mach. &		Pers			Home		Other		Agency		Agency		Change			Change			Change
Risk State	Casualty		Prop		Auto		Comp			Packages		Exec Risk		Equip		Auto			Owner		Personal		Direct		Direct		%			%			%
AL	$	21.1	$	16.9	$	8.5	$	1.3		$	7.1	$	2.0	$	0.6	$	15.5		$	22.8	$	4.8	$	100.6	$	94.2		8.1			4.9			6.7
AZ		13.6		6.1		9.6		0.3			1.0		0.8		0.6		0.0			0.2		0.1		32.3		30.1		7.1			(0.5	)		7.0
AR		10.5		9.6		6.0		5.2			3.6		1.3		0.4		2.6			2.9		0.8		42.9		45.3		(5.6	)		(4.5	)		(5.4	)
DE		1.1		0.6		0.7		1.9			0.1		0.0		0.0		0.0			0.0		0.0		4.5		3.7		23.6			183.0			23.6
FL		36.3		25.5		13.4		1.8			3.1		2.7		1.0		12.4			23.4		3.6		123.2		121.5		(1.5	)		8.4			1.4
GA		28.7		21.6		19.3		12.4			7.0		7.1		0.8		30.7			26.0		7.0		160.7		157.2		5.0			(1.7	)		2.2
ID		9.4		4.4		4.9		0.2			0.9		0.9		0.3		0.0			0.0		0.0		20.9		17.0		22.7			(96.2	)		22.6
IL		79.5		46.3		31.0		60.9			13.4		8.2		3.1		23.9			18.9		6.2		291.5		303.3		(3.9	)		(3.9	)		(3.9	)
IN		51.2		38.3		25.2		30.1			7.9		7.5		2.3		27.2			25.7		6.7		222.3		229.9		(2.3	)		(5.9	)		(3.3	)
IA		21.0		14.8		9.3		24.0			4.5		2.6		1.3		4.3			4.3		1.8		88.0		89.1		(0.2	)		(7.5	)		(1.1	)
KS		7.6		7.6		4.4		7.1			3.2		1.4		0.4		4.8			6.2		1.3		44.0		42.4		7.3			(4.5	)		3.7
KY		22.1		19.3		14.3		3.8			5.1		3.2		0.9		19.3			15.0		3.9		106.9		106.2		2.2			(2.2	)		0.6
MD		14.6		6.4		10.6		12.6			1.0		1.8		0.3		(0.0	)		1.4		0.5		49.2		47.1		4.4			3.8			4.4
MI		38.3		24.2		16.7		20.2			12.5		6.1		1.7		12.5			15.5		3.3		150.9		166.3		(9.1	)		(10.0	)		(9.3	)
MN		25.9		17.0		10.0		8.3			3.9		2.5		1.1		6.3			5.4		2.9		83.4		84.5		0.2			(8.1	)		(1.3	)
MO		27.7		20.3		12.9		19.4			5.3		2.4		1.2		2.6			4.2		0.9		96.9		92.4		7.0			(14.3	)		4.9
MT		14.4		7.3		7.1		0.1			0.9		0.4		0.4		0.1			0.1		0.0		30.6		28.6		7.0			4.0			7.0
NE		6.8		5.5		3.5		8.6			1.4		1.0		0.4		1.0			1.2		0.3		29.7		32.0		(5.9	)		(19.2	)		(7.2	)
NH		2.8		1.9		1.4		2.4			0.8		0.5		0.1		0.7			0.7		0.4		11.8		12.1		(1.8	)		(8.6	)		(2.9	)
NY		32.9		7.6		10.3		2.4			1.5		3.6		0.6		0.0			0.0		0.0		59.0		50.4		17.1			10.8			17.1
NC		44.4		30.2		23.1		28.9			12.4		7.9		1.4		1.0			1.6		2.5		153.5		149.3		3.2			(7.0	)		2.8
ND		5.1		3.6		2.6		0.0			0.8		0.6		0.2		0.6			0.6		0.2		14.3		12.6		16.6			(12.1	)		13.2
OH		160.4		93.0		70.5		(0.4	)		21.5		25.9		4.5		132.0			92.4		30.5		630.3		668.3		(6.3	)		(4.8	)		(5.7	)
PA		47.9		28.8		29.1		53.8			9.8		5.9		1.7		8.0			6.4		3.3		194.8		198.6		(2.1	)		(0.5	)		(1.9	)
SC		14.6		9.7		9.1		5.6			2.4		2.9		0.4		0.0			0.1		0.2		44.9		43.7		2.8			28.1			2.9
SD		4.5		2.9		2.3		4.3			0.4		0.5		0.2		0.0			0.0		0.0		15.1		14.2		6.8			(10.9	)		6.7
TN		26.2		18.4		15.2		12.9			8.6		4.1		1.0		8.2			8.6		3.0		106.2		104.3		1.2			4.5			1.8
UT		11.7		4.1		5.0		0.0			0.4		1.6		0.3		0.0			0.0		0.0		23.2		18.5		25.4			12.7			25.4
VT		5.4		4.3		2.9		7.5			1.1		0.8		0.3		0.8			0.9		0.3		24.2		22.8		6.9			(2.8	)		6.0
VA		34.0		24.9		22.5		23.3			4.9		5.4		1.1		10.0			8.3		2.9		137.2		143.3		(4.4	)		(3.6	)		(4.3	)
WV		8.6		6.1		5.9		0.0			2.3		1.0		0.3		0.0			0.9		0.3		25.4		26.3		(3.5	)		(6.6	)		(3.6	)
WI		29.8		18.2		12.6		25.2			4.7		2.4		1.6		9.3			7.6		3.3		114.7		119.0		(2.8	)		(7.8	)		(3.7	)
All Other		5.3		4.3		4.1		4.9			0.1		1.4		0.2		0.0			0.2		0.0		20.7		19.1		8.2			11.6			8.3
Total	$	863.2	$	549.9	$	424.1	$	389.1		$	153.7	$	116.4	$	30.9	$	333.9		$	301.5	$	91.0	$	3,253.6	$	3,293.5		(0.5	)		(3.5	)		(1.2	)
Other Direct		1.0		1.5		0.8		6.7			0.4		0.0		0.0		0.9			2.6		1.8		15.7		18.6		(17.9	)		15.7			(15.6	)
Total Direct	$	864.2	$	551.4	$	424.9	$	395.8		$	154.1	$	116.4	$	30.9	$	334.8		$	304.1	$	92.8	$	3,269.3	$	3,312.1		(0.7	)		(3.4	)		(1.3	)

2007 Fourth-Quarter and Full-Year Financial Supplement 20

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
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07			6/30/06			9/30/07			9/30/06			12/31/07			12/31/06
Commercial casualty:
Written premiums	$	189		$	179		$	218		$	245		$	204		$	196		$	209		$	228		$	462		$	437		$	641		$	634		$	830		$	838
Earned premiums		204			205			209			209			219			207			208			197			418			405			623			613			827			831
Loss and loss expenses ratio		32.0	%		63.7	%		54.6	%		53.5	%		58.8	%		49.4	%		51.8	%		51.3	%		54.2	%		51.6	%		57.4	%		50.8	%		51.1	%		53.0	%
Less catastrophe loss ratio		—			—			—			—			—			—			—			—			—			—			—			—			—			—
Loss and loss expenses excluding catastrophe loss ratio		32.0	%		63.7	%		54.6	%		53.5	%		58.8	%		49.4	%		51.8	%		51.3	%		54.2	%		51.6	%		57.4	%		50.8	%		51.1	%		53.0	%
Commercial property:
Written premiums	$	116		$	120		$	125		$	138		$	124		$	126		$	122		$	134		$	263		$	256		$	383		$	381		$	499		$	505
Earned premiums		124			125			125			123			123			123			123			121			248			244			373			367			497			491
Loss and loss expenses ratio		32.9	%		61.5	%		45.8	%		53.6	%		47.0	%		54.9	%		55.8	%		72.6	%		49.7	%		64.2	%		53.7	%		61.0	%		48.5	%		57.5	%
Less catastrophe loss ratio		—			(1.4	)		3.2			6.9			7.1			9.9			15.9			22.7			5.0			19.3			2.9			16.1			2.2			13.9
Loss and loss expenses excluding catastrophe loss ratio		32.9	%		62.9	%		42.6	%		46.7	%		39.9	%		45.0	%		39.9	%		49.9	%		44.7	%		44.9	%		50.8	%		44.9	%		46.3	%		43.6	%
Commercial auto:
Written premiums	$	100		$	92		$	112		$	124		$	105		$	105		$	115		$	126		$	236		$	240		$	329		$	345		$	429		$	450
Earned premiums		110			108			110			113			116			113			112			112			223			224			331			337			440			453
Loss and loss expenses ratio		60.3	%		66.9	%		62.9	%		64.6	%		58.5	%		72.8	%		57.0	%		57.7	%		63.4	%		57.4	%		64.5	%		62.5	%		63.5	%		61.5	%
Less catastrophe loss ratio		(0.2	)		0.4			—			(0.2	)		0.6			(0.5	)		3.1			0.6			—			1.9			0.1			1.0			—			0.9
Loss and loss expenses excluding catastrophe loss ratio		60.5	%		66.5	%		62.9	%		64.8	%		57.9	%		73.3	%		53.9	%		57.1	%		63.4	%		55.5	%		64.4	%		61.5	%		63.5	%		60.6	%
Workers’ compensation:
Written premiums	$	88		$	84		$	92		$	113		$	91		$	85		$	91		$	111		$	206		$	203		$	289		$	288		$	378		$	379
Earned premiums		93			94			95			92			95			93			90			88			187			178			280			271			373			366
Loss and loss expenses ratio		113.6	%		82.0	%		66.8	%		76.5	%		89.3	%		90.3	%		83.1	%		78.6	%		71.5	%		80.8	%		75.0	%		84.1	%		84.6	%		85.4	%
Less catastrophe loss ratio		—			—			—			—			—			—			—			—			—			—			—			—			—			—
Loss and loss expenses excluding catastrophe loss ratio		113.6	%		82.0	%		66.8	%		76.5	%		89.3	%		90.3	%		83.1	%		78.6	%		71.5	%		80.8	%		75.0	%		84.1	%		84.6	%		85.4	%
Specialty package:
Written premiums	$	36		$	34		$	36		$	41		$	35		$	35		$	34		$	40		$	77		$	74		$	111		$	109		$	146		$	144
Earned premiums		36			36			37			36			35			35			35			36			73			71			109			106			146			141
Loss and loss expenses ratio		41.9	%		76.7	%		49.9	%		69.6	%		44.9	%		74.2	%		82.1	%		64.3	%		59.6	%		73.1	%		65.3	%		73.5	%		59.4	%		66.3	%
Less Catastrophe loss ratio		0.6			6.2			2.6			7.0			5.8			7.1			29.2			3.6			4.7			16.2			5.2			13.3			4.1			11.4
Loss and loss expenses excluding catastrophe loss ratio		41.3	%		70.5	%		47.3	%		62.6	%		39.1	%		67.1	%		52.9	%		60.7	%		54.9	%		56.9	%		60.1	%		60.2	%		55.3	%		54.9	%
Surety and executive risk:
Written premiums	$	26		$	28		$	23		$	25		$	23		$	28		$	24		$	22		$	48		$	46		$	76		$	74		$	102		$	97
Earned premiums		27			25			24			24			24			24			24			21			47			45			73			69			100			93
Loss and loss expenses ratio		55.7	%		36.5	%		49.3	%		24.0	%		36.3	%		47.3	%		89.6	%		26.5	%		36.7	%		60.1	%		36.7	%		55.6	%		41.8	%		50.7	%
Less catastrophe loss ratio		—			—			—			—			—			—			—			—			—			—			—			—			—			—
Loss and loss expenses excluding catastrophe loss ratio		55.7	%		36.5	%		49.3	%		24.0	%		36.3	%		47.3	%		89.6	%		26.5	%		36.7	%		60.1	%		36.7	%		55.6	%		41.8	%		50.7	%
Machinery and equipment:
Written premiums	$	7		$	7		$	7		$	7		$	7		$	7		$	8		$	7		$	14		$	15		$	22		$	22		$	29		$	29
Earned premiums		7			7			7			7			7			7			7			7			14			14			21			20			28			27
Loss and loss expense ratio		27.8	%		34.7	%		20.4	%		28.2	%		62.4	%		45.2	%		27.0	%		32.2	%		24.3	%		29.6	%		27.8	%		34.8	%		27.8	%		42.0	%
Less catastrophe loss ratio		(0.8	)		1.3			—			(1.6	)		(0.5	)		2.1			—			—			(0.8	)		0.1			(0.1	)		0.8			(0.3	)		0.4
Loss and loss expense excluding catastrophe loss ratio		28.6	%		33.4	%		20.4	%		29.8	%		62.9	%		43.1	%		27.0	%		32.2	%		25.1	%		29.5	%		27.9	%		34.0	%		28.1	%		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.

2007 Fourth-Quarter and Full-Year Financial Supplement 21

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
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07			6/30/06				9/30/07			9/30/06			12/31/07			12/31/06
Personal auto:
Written premiums	$	75		$	92		$	93		$	72		$	79		$	96		$	104		$	79		$	164		$	184			$	256		$	279		$	332		$	359
Earned premiums		83			85			86			88			91			95			98			101			174			199				259			294			342			385
Loss and loss expenses ratio		65.3	%		67.7	%		67.6	%		66.5	%		74.3	%		60.6	%		65.8	%		60.1	%		67.1	%		62.9	%			67.3	%		62.2	%		66.8	%		65.0	%
Less catastrophe loss ratio		(0.3	)		0.7			(0.3	)		(2.3	)		5.7			1.4			3.6			0.8			(1.3	)		2.2				(0.6	)		2.0			(0.6	)		2.8
Loss and loss expenses excluding catastrophe loss ratio		65.6	%		67.0	%		67.9	%		68.8	%		68.6	%		59.2	%		62.2	%		59.3	%		68.4	%		60.7	%			67.9	%		60.2	%		67.4	%		62.2	%
Homeowner:
Written premiums	$	66		$	77		$	80		$	61		$	66		$	79		$	83		$	62		$	141		$	144			$	218		$	224		$	284		$	290
Earned premiums		71			70			72			71			70			72			74			73			143			146				214			219			285			289
Loss and loss expenses ratio		36.6	%		82.7	%		66.9	%		50.0	%		80.8	%		93.9	%		93.1	%		64.0	%		58.5	%		78.6	%			66.5	%		83.7	%		59.0	%		83.0	%
Less catastrophe loss ratio		(2.3	)		15.6			8.3			(7.5	)		36.0			15.0			33.1			11.1			0.4			22.1				5.4			19.8			3.5			23.7
Loss and loss expenses excluding catastrophe loss ratio		38.9	%		67.1	%		58.6	%		57.5	%		44.8	%		78.9	%		60.0	%		52.9	%		58.1	%		56.5	%			61.1	%		63.9	%		55.5	%		59.3	%
Other personal:
Written premiums	$	21		$	23		$	24		$	20		$	21		$	23		$	24		$	20		$	44		$	44			$	67		$	67		$	88		$	87
Earned premiums		22			22			22			22			22			22			22			22			43			45				65			66			87			88
Loss and loss expenses ratio		24.1	%		57.9	%		62.8	%		43.4	%		45.6	%		63.3	%		80.9	%		47.4	%		53.1	%		64.2	%			54.7	%		63.9	%		47.0	%		59.4	%
Less Catastrophe loss ratio		0.6			3.7			3.5			(0.1	)		9.9			5.2			10.8			3.8			1.3			7.4				2.0			6.6			1.7			7.4
Loss and loss expenses excluding catastrophe loss ratio		23.5	%		54.2	%		59.3	%		43.5	%		35.7	%		58.1	%		70.1	%		43.6	%		51.8	%		56.8	%			52.7	%		57.3	%		45.3	%		52.0	%

* 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.

2007 Fourth-Quarter and Full-Year Financial Supplement 22

Cincinnati Insurance Group
Quarterly Detailed Loss Analysis

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07			6/30/06			9/30/07			9/30/06			12/31/07			12/31/06
All Lines
Loss and loss expenses:
Loss and loss expenses — current AY	$	515		$	558		$	484		$	472		$	539		$	526		$	468		$	414		$	956		$	882		$	1,515		$	1,407		$	2,029		$	1,947
Loss and loss expenses — prior AY’s		(118	)		(47	)		(40	)		(18	)		(81	)		(37	)		(13	)		18			(58	)		5			(106	)		(32	)		(223	)		(113	)
Catastrophes — current AY		(1	)		15			15			17			42			29			67			38			31			105			48			134			46			176
Catastrophes — prior AY’s		(1	)		(2	)		(4	)		(13	)		2			(2	)		(3	)		1			(17	)		(2	)		(20	)		(4	)		(20	)		(2	)
Total	$	395		$	524		$	455		$	458		$	502		$	516		$	519		$	471		$	912		$	990		$	1,437		$	1,505		$	1,832		$	2,008
Ratio to Earned Premiums
Loss and loss expenses :
Loss and loss expenses — current AY		66.3	%		71.9	%		61.6	%		60.2	%		67.2	%		66.4	%		59.1	%		53.2	%		60.9	%		56.2	%		64.5	%		59.7	%		64.9	%		61.6	%
Loss and loss expenses — prior AY’s		(15.2	)		(6.2	)		(5.1	)		(2.3	)		(10.1	)		(4.7	)		(1.7	)		2.4			(3.7	)		0.3			(4.5	)		(1.3	)		(7.1	)		(3.6	)
Catastrophes — current AY		(0.1	)		2.0			1.9			2.1			5.4			3.7			8.5			4.9			2.0			6.7			2.0			5.7			1.4			5.6
Catastrophes — prior AY’s		(0.1	)		(0.3	)		(0.5	)		(1.7	)		0.2			(0.2	)		(0.5	)		0.2			(1.1	)		(0.2	)		(0.9	)		(0.2	)		(0.6	)		(0.1	)
Total		50.9	%		67.4	%		57.9	%		58.3	%		62.6	%		65.2	%		65.3	%		60.6	%		58.1	%		63.0	%		61.1	%		63.9	%		58.6	%		63.5	%
Commercial Lines
Loss and loss expenses:
Loss and loss expenses — current AY	$	412		$	433		$	370		$	357		$	421		$	396		$	349		$	310		$	727		$	659		$	1,159		$	1,054		$	1,571		$	1,476
Loss and loss expenses — prior AY’s		(102	)		(38	)		(40	)		(13	)		(64	)		(33	)		(15	)		14			(53	)		(1	)		(91	)		(34	)		(193	)		(98	)
Catastrophes — current AY		—			5			8			13			9			15			35			28			21			63			27			78			26			87
Catastrophes — prior AY’s		0			(4	)		(3	)		(3	)		2			(1	)		(1	)		1			(6	)		—			(10	)		(1	)		(10	)		1
Total	$	310		$	396		$	335		$	354		$	368		$	377		$	368		$	353		$	689		$	721		$	1,085		$	1,097		$	1,394		$	1,466
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses — current AY		68.5	%		72.2	%		61.0	%		59.0	%		67.9	%		65.7	%		58.3	%		53.3	%		60.0	%		55.8	%		64.0	%		59.2	%		65.2	%		61.4	%
Loss and loss expenses — prior AY’s		(17.0	)		(6.4	)		(6.6	)		(2.1	)		(10.3	)		(5.5	)		(2.5	)		2.5			(4.3	)		0.0			(5.0	)		(1.9	)		(8.0	)		(4.1	)
Catastrophes — current AY		0.0			0.9			1.4			2.2			1.6			2.5			5.9			4.8			1.8			5.4			1.6			4.4			1.1			3.7
Catastrophes — prior AY’s		(0.0	)		(0.8	)		(0.5	)		(0.4	)		0.3			(0.2	)		(0.4	)		0.2			(0.5	)		(0.1	)		(0.6	)		(0.1	)		(0.4	)		—
Total		51.5	%		66.0	%		55.3	%		58.6	%		59.5	%		62.6	%		61.3	%		60.8	%		57.0	%		61.1	%		60.0	%		61.6	%		57.9	%		61.0	%
Personal Lines
Loss and loss expenses:
Loss and loss expenses — current AY	$	103		$	125		$	114		$	115		$	118		$	130		$	119		$	104		$	229		$	223		$	356		$	353		$	458		$	471
Loss and loss expenses — prior AY’s		(16	)		(9	)		—			(5	)		(17	)		(4	)		2			4			(5	)		6			(15	)		2			(30	)		(15	)
Catastrophes — current AY		(1	)		10			7			4			33			14			32			10			10			42			21			56			20			89
Catastrophes — prior AY’s		(1	)		2			(1	)		(10	)		—			(1	)		(2	)		—			(11	)		(2	)		(10	)		(3	)		(10	)		(3	)
Total	$	85		$	128		$	120		$	104		$	134		$	139		$	151		$	118		$	223		$	269		$	352		$	408		$	438		$	542
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses — current AY		58.5	%		70.8	%		63.3	%		64.4	%		64.9	%		68.8	%		61.5	%		53.1	%		63.8	%		57.3	%		66.1	%		61.0	%		64.2	%		61.9	%
Loss and loss expenses — prior AY’s		(8.9	)		(5.3	)		(0.1	)		(3.0	)		(9.4	)		(2.2	)		0.7			2.0			(1.5	)		1.4			(2.8	)		0.3			(4.2	)		(2.0	)
Catastrophes — current AY		(0.7	)		5.9			3.8			2.0			18.1			7.3			16.4			5.1			2.9			10.7			3.9			9.7			2.7			11.7
Catastrophes — prior AY’s		(0.3	)		1.1			(0.3	)		(6.1	)		(0.2	)		(0.3	)		(0.8	)		(0.1	)		(3.2	)		(0.4	)		(1.8	)		(0.5	)		(1.4	)		(0.4	)
Total		48.6	%		72.5	%		66.7	%		57.3	%		73.4	%		73.7	%		77.9	%		60.1	%		62.0	%		69.0	%		65.4	%		70.5	%		61.3	%		71.2	%

2007 Fourth-Quarter and Full-Year Financial Supplement 23

Cincinnati Insurance Group
10-Year Property Casualty Data — Consolidated

(Dollars in millions)	Years ended December 31,
	2007			2006			2005			2004			2003			2002			2001			2000			1999			1998
Premiums
Adjusted written premiums (statutory)*	$	3,149		$	3,172		$	3,097		$	3,026		$	2,789		$	2,496		$	2,188		$	1,936		$	1,681		$	1,558
Codification		—			—			—			—			—			—			402			(55	)		—			—
Written premium adjustment — statutory only		(32	)		6			(21	)		(29	)		26			117			—			—			—			—
Reported written premiums (statutory)**		3,117			3,178			3,076			2,997			2,815			2,613			2,590			1,881			1,681			1,558
Unearned premiums change		8			(14	)		(18	)		(78	)		(162	)		(222	)		(517	)		(53	)		(23	)		(15	)
Earned premiums (GAAP)	$	3,125		$	3,164		$	3,058		$	2,919		$	2,653		$	2,391		$	2,073		$	1,828		$	1,658		$	1,543
Year-over-year growth rate:
Adjusted written premiums (statutory)		(0.7)	%		2.4	%		2.3	%		8.5	%		11.7	%		14.0	%		13.0	%		15.2	%		7.9	%		6	%
Written premiums (statutory)		(1.9)	%		3.3	%		2.6	%		6.5	%		7.7	%		0.9	%		37.7	%		11.9	%		7.9	%		5.8	%
Earned premiums		(1.2)	%		3.5	%		4.8	%		10.0	%		11.0	%		15.3	%		13.4	%		10.3	%		7.5	%		6.1	%
Statutory combined ratio
Reported statutory combined ratio*		90.3	%		93.9	%		89.0			89.4	%		94.2	%		98.4	%		99.5	%		112.5	%		100.4	%		104.2	%
Codification		—			—			—			—			—			—			4.1			(0.9	)		—			—
Written premium adjustment — statutory only	nm			nm			nm			nm			nm				1.2			—			—			—			—
One-time item		—			—			—			—			0.8			—			—			(1.7	)		—			—
Statutory combined ratio (adjusted)		90.3	%		93.9	%		89.0	%		89.4	%		95.0	%		99.6	%		103.6	%		109.9	%		100.4	%		104.2	%
Less catastrophe losses		0.8			5.5			4.1			5.1			3.6			3.6			3.1			2.7			2.5			6.1
Statutory combined ratio excluding catastrophe losses (adjusted)		89.5	%		88.4	%		84.9	%		84.3	%		91.4	%		96.0	%		100.5	%		107.2	%		97.9	%		98.1	%
Reported commission expense ratio*		19.2	%		18.7	%		19.3	%		19.2	%		17.6	%		15.9	%		13.9	%		17.4	%		17.4	%		17.6	%
Codification		—			—			—			—			—			—			2.6			(0.5	)		—			—
Written premium adjustment — statutory only	nm			nm			nm			nm			nm				0.8			—			—			—			—
One-time item		—			—			—			—			—			—			—			—			—			—
Commission expense ratio (adjusted)		19.2	%		18.7	%		19.3	%		19.2	%		17.6	%		16.7	%		16.5	%		16.9	%		17.4	%		17.6	%
Reported other expense ratio*		12.5	%		11.7	%		10.5	%		10.1	%		8.9	%		9.6	%		8.7	%		12.6	%		11.4	%		11.9	%
Codification		—			—			—			—			—			—			1.5			(0.4	)		—			—
Written premium adjustment — statutory only	nm			nm			nm			nm			nm				0.4			—			—			—			—
One-time item		—			—			—			—			0.8			—			—			(1.7	)		—			—
Other expense ratio (adjusted)		12.5	%		11.7	%		10.5	%		10.1	%		9.7	%		10.0	%		10.2	%		10.5	%		11.4	%		11.9	%
Reported statutory expense ratio*		31.7	%		30.4	%		29.8	%		29.3	%		26.5	%		25.5	%		22.6	%		30.0	%		28.8	%		29.5	%
Codification		—			—			—			—			—			—			4.1			(0.9	)		—			—
Written premium adjustment — statutory only	nm			nm			nm			nm			nm				1.2			—			—			—			—
One-time item		—			—			—			—			0.8			—			—			(1.7	)		—			—
Statutory expense ratio (adjusted)		31.7	%		30.4	%		29.8	%		29.3	%		27.3	%		26.7	%		26.7	%		27.4	%		28.8	%		29.5	%
GAAP combined ratio
GAAP combined ratio		90.3	%		94.3	%		89.2	%		89.8	%		94.7	%		99.7	%		104.9	%		112.8	%		100.2	%		104.3	%
One-time item		—			—			—			—			0.8			—			—			(2.1	)		—			—
GAAP combined ratio before one-time item		90.3	%		94.3	%		89.2	%		89.8	%		95.5	%		99.7	%		104.9	%		110.7	%		100.2	%		104.3	%
Written premiums to surplus
Adjusted premiums to statutory surplus ratio		0.731			0.668			0.739			0.721			1.002			1.067			0.864
Written premium adjustment		(0.007	)		0.001			(0.005	)		(0.007	)		0.010			0.050			0.159
Reported premiums to statutory surplus ratio		0.724			0.669			0.734			0.714			1.012			1.117			1.023

*	Dollar amounts shown are rounded to 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.

2007 Fourth-Quarter and Full-Year Financial Supplement 24

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

(Dollars in millions)	Years ended December 31,
	2007			2006			2005			2004			2003			2002
Premiums
Adjusted written premiums (statutory)*	$	2,444		$	2,435		$	2,306		$	2,209		$	2,009		$	1,795
Codification		—			—			—			—			—			—
Written premium adjustment — statutory only		(31	)		7			(16	)		(23	)		22			110
Reported written premiums (statutory)	$	2,413		$	2,442		$	2,290		$	2,186		$	2,031		$	1,905
Unearned premiums change		(2	)		(40	)		(36	)		(60	)		(123	)		(184	)
Earned premiums (GAAP)	$	2,411		$	2,402		$	2,254		$	2,126		$	1,908		$	1,721
Year-over-year growth rate:
Adjusted written premiums (statutory)		0.4	%		5.6	%		4.4	%		10.0	%		11.9	%		15.8	%
Written premiums (statutory)		(1.2	)%		6.7	%		4.7	%		7.6	%		6.6	%		4.2	%
Earned premiums		0.4	%		6.6	%		6.0	%		11.4	%		10.8	%		18.6	%
Statutory combined ratio
Reported statutory combined ratio*		89.2	%		90.8	%		87.1	%		83.7	%		90.9	%		95.3	%
Codification		—			—			—			—			—			—
Written premium adjustment — statutory only	nm			nm			nm			nm			nm				1.5
One-time item		—			—			—			—			0.7			—
Statutory combined ratio (adjusted)		89.2	%		90.8	%		87.1	%		83.7	%		91.6	%		96.8	%
Less catastrophe losses		0.6			3.7			3.4			3.4			2.2			2.3
Statutory combined ratio excluding catastrophe losses (adjusted)		88.6	%		87.1	%		83.7	%		80.3	%		89.4	%		94.5	%
GAAP combined ratio
GAAP combined ratio		89.2	%		91.3	%		87.4	%		84.1	%		91.3	%		96.6	%
One-time item		—			—			—			—			0.8			—
GAAP combined ratio before one-time item		89.2	%		91.3	%		87.4	%		84.1	%		92.1	%		96.6	%

*	Dollar amounts shown are rounded to 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.

2007 Fourth-Quarter and Full-Year Financial Supplement 25

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

(Dollars in millions)	Years ended December 31,
	2007			2006			2005			2004			2003			2002
Premiums
Adjusted written premiums (statutory)*	$	705		$	737		$	791		$	817		$	780		$	701
Codification		—			—			—			—			—			—
Written premium adjustment — statutory only		(1	)		(1	)		(5	)		(6	)		4			7
Reported written premiums (statutory)	$	704		$	736		$	786		$	811		$	784		$	708
Unearned premiums change		10			26			18			(18	)		(39	)		(38	)
Earned premiums (GAAP)	$	714		$	762		$	804		$	793		$	745		$	670
Year-over-year growth rate:
Adjusted written premiums (statutory)		(4.3	)%		(6.8	)%		(3.2	)%		4.7	%		12.0	%		9.8	%
Written premiums (statutory)		(4.4	)%		(6.4	)%		(3.1	)%		3.4	%		10.8	%		(7.2	)%
Earned premiums		(6.3	)%		(5.2	)%		1.4	%		6.4	%		11.2	%		8.1	%
Statutory combined ratio
Reported statutory combined ratio*		94.1	%		103.6	%		94.3			104.6	%		102.9	%		106.5	%
Codification		—			—			—			—			—			—
Written premium adjustment — statutory only	nm			nm			nm			nm			nm				0.3
One-time item		—			—			—			—			1.0			—
Statutory combined ratio (adjusted)		94.1	%		103.6	%		94.3	%		104.6	%		103.9	%		106.8	%
Less catastrophe losses		1.3			11.3			6.3			9.7			7.3			7.1
Statutory combined ratio excluding catastrophe losses (adjusted)		92.8	%		92.3	%		88.0	%		94.9	%		96.6	%		99.7	%
GAAP combined ratio
GAAP combined ratio		93.9	%		103.6	%		94.4	%		105.0	%		103.6	%		107.6	%
One-time item		—			—			—			—			1.1			—
GAAP combined ratio before one-time item		93.9	%		103.6	%		94.4	%		105.0	%		104.7	%		107.6	%

*	Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.
*nm	— Not meaningful
*	Satutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.

2007 Fourth-Quarter and Full-Year Financial Supplement 26

Cincinnati Insurance Group
Quarterly Property Casualty Data — Consolidated

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07			6/30/06			9/30/07			9/30/06			12/31/07			12/31/06
Premiums
Adjusted written premiums (statutory)	$	749		$	779		$	808		$	811		$	785		$	787		$	804		$	796		$	1,619		$	1,600		$	2,398		$	2,387		$	3,149		$	3,172
Written premium adjustment — statutory only		(25	)		(43	)		2			35			(30	)		(7	)		10			33			37			43			(6	)		36			(32	)		6
Reported written premiums (statutory)*	$	724		$	736		$	810		$	846		$	755		$	780		$	814		$	829		$	1,656		$	1,643		$	2,392		$	2,423		$	3,117		$	3,178
Unearned premiums change		53			41			(23	)		(61	)		47			11			(21	)		(51	)		(85	)		(72	)		(44	)		(61	)		8			(14	)
Earned premiums	$	777		$	777		$	787		$	785		$	802		$	791		$	793		$	778		$	1,571		$	1,571		$	2,348		$	2,362		$	3,125		$	3,164
Statutory combined ratio
Statutory combined ratio		87.8	%		98.7	%		87.7	%		87.7	%		95.9	%		96.4	%		93.7	%		89.6	%		87.7	%		91.7	%		91.3	%		93.2	%		90.3	%		93.9	%
Less catastrophe losses		(0.3	)		1.7			1.4			0.4			5.5			3.5			8.0			5.0			0.9			6.5			1.2			5.5			0.8			5.5
Statutory combined ratio excluding catastrophe losses		88.1	%		97.0	%		86.3	%		87.3	%		90.4	%		92.9	%		85.7	%		84.6	%		86.8	%		85.2	%		90.1	%		87.7	%		89.5	%		88.4	%
Commission expense ratio		23.1	%		18.1	%		18.1	%		18.0	%		19.9	%		19.3	%		17.6	%		18.2	%		18.0	%		17.9	%		18.0	%		18.3	%		19.2	%		18.7	%
Other expense ratio		13.9			13.2			11.7			11.4			13.4			11.9			10.8			10.8			11.6			10.8			12.1			11.2			12.5			11.7
Statutory expense ratio		37.0	%		31.3	%		29.8	%		29.4	%		33.3	%		31.2	%		28.4	%		29.0	%		29.6	%		28.7	%		30.1	%		29.5	%		31.7	%		30.4	%
GAAP combined ratio
GAAP combined ratio		85.6	%		97.3	%		88.6	%		89.6	%		94.5	%		96.1	%		94.5	%		92.0	%		89.1	%		93.3	%		91.8	%		94.2	%		90.3	%		94.3	%

*	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.

2007 Fourth-Quarter and Full-Year Financial Supplement 27

Cincinnati Insurance Group
Quarterly Property Casualty Data — Commercial Lines

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07			6/30/06			9/30/07			9/30/06			12/31/07			12/31/06
Premiums
Adjusted written premiums (statutory)	$	586		$	587		$	611		$	658		$	618		$	589		$	593		$	635		$	1,269		$	1,228		$	1,857		$	1,817		$	2,444		$	2,435
Written premium adjustment — statutory only		(24	)		(43	)		2			35			(29	)		(7	)		10			33			37			43			(6	)		36			(31	)		7
Reported written premiums (statutory)*	$	562		$	544		$	613		$	693		$	589		$	582		$	603		$	668		$	1,306		$	1,271		$	1,851		$	1,853		$	2,413		$	2,442
Unearned premiums change		39			56			(6	)		(89	)		30			20			(4	)		(86	)		(96	)		(90	)		(41	)		(70	)		(2	)		(40	)
Earned premiums	$	601		$	600		$	607		$	604		$	619		$	602		$	599		$	582		$	1,210		$	1,181		$	1,810		$	1,783		$	2,411		$	2,402
Statutory combined ratio
Statutory combined ratio		89.7	%		97.3	%		84.4	%		86.5	%		92.4	%		94.1	%		89.6	%		87.5	%		85.4	%		88.6	%		89.2	%		90.3	%		89.2	%		90.8	%
Less catastrophe losses		—			0.2			0.8			1.8			1.9			2.3			5.6			5.1			1.3			5.3			0.9			4.3			0.6			3.7
Statutory combined ratio excluding catastrophe losses		89.7	%		97.1	%		83.6	%		84.7	%		90.5	%		91.8	%		84.0	%		82.4	%		84.1	%		83.3	%		88.3	%		86.0	%		88.6	%		87.1	%
GAAP combined ratio
GAAP combined ratio		87.3	%		95.4	%		85.2	%		88.9	%		91.1	%		93.4	%		90.3	%		90.5	%		87.0	%		90.4	%		89.8	%		91.4	%		89.2	%		91.3	%

*	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.

2007 Fourth-Quarter and Full-Year Financial Supplement 28

Cincinnati Insurance Group
Quarterly Property Casualty Data — Personal Lines

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06			9/30/06			6/30/06			3/31/06			6/30/07			6/30/06			9/30/07			9/30/06			12/31/07			12/31/06
Premiums
Adjusted written premiums (statutory)	$	163		$	192		$	197		$	153		$	167		$	198		$	211		$	161		$	350		$	372		$	541		$	570		$	705		$	737
Written premium adjustment — statutory only		(1	)		—			—			—			(1	)		—			—			—			—			—			—			—			(1	)		(1	)
Reported written premiums (statutory)*	$	162		$	192		$	197		$	153		$	166		$	198		$	211		$	161		$	350		$	372		$	541		$	570		$	704		$	736
Unearned premiums change		14			(15	)		(17	)		28			17			(9	)		(17	)		35			11			18			(3	)		9			10			26
Earned premiums	$	176		$	177		$	180		$	181		$	183		$	189		$	194		$	196		$	361		$	390		$	538		$	579		$	714		$	762
Statutory combined ratio
Statutory combined ratio		81.4	%		103.6	%		98.6	%		93.5	%		107.7	%		104.0	%		106.4	%		98.1	%		95.8	%		101.6	%		98.3	%		102.3	%		94.1	%		103.6	%
Less catastrophe losses		(1.0	)		7.0			3.5			(4.1	)		17.9			7.1			15.6			5.0			(0.3	)		10.3			2.1			9.2			1.3			11.3
Statutory combined ratio excluding catastrophe losses		82.4	%		96.6	%		95.1	%		97.6	%		89.8	%		96.9	%		90.8	%		93.1	%		96.1	%		91.3	%		96.2	%		93.1	%		92.8	%		92.3	%
GAAP combined ratio
GAAP combined ratio		79.7	%		103.8	%		99.9	%		92.0	%		106.0	%		104.4	%		107.6	%		96.4	%		96.0	%		102.0	%		98.6	%		102.8	%		93.9	%		103.6	%

*	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.
*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.

2007 Fourth-Quarter and Full-Year Financial Supplement 29

The Cincinnati Life Insurance Company
GAAP Statements of Income

	For the Three Months Ended December 31,												For the Twelve Months Ended December 31,
	2007			2006			Change			% Change			2007			2006			Change			% Change
Revenues:
Premiums earned:
Property casualty	$	—		$	—		$	—			—		$	—		$	—		$	—			—
Life		46,505,810			43,271,070			3,234,740			7.48			171,169,598			152,590,039			18,579,559			12.18
Accident health		1,836,071			1,703,987			132,084			7.75			6,977,193			6,652,508			324,685			4.88
Premiums ceded		(16,517,832	)		(16,299,863	)		(217,969	)		1.34			(53,116,719	)		(52,765,624	)		(351,095	)		0.67
Total premiums earned		31,824,049			28,675,194			3,148,855			10.98			125,030,072			106,476,923			18,553,149			17.42
Investment income		29,822,571			27,053,035			2,769,536			10.24			114,416,869			107,656,860			6,760,009			6.28
Realized investment gains and losses		(11,519,842	)		2,533,775			(14,053,617	)		(554.65	)		40,231,015			44,861,000			(4,629,985	)		(10.32	)
Other income		982,465			992,375			(9,910	)		(1.00	)		4,444,171			3,552,294			891,877			25.11
Total revenues	$	51,109,243		$	59,254,379		$	(8,145,136	)		(13.75	)	$	284,122,127		$	262,547,077		$	21,575,050			8.22
Benefits & expenses:
Losses & policy benefits	$	45,653,794		$	43,696,578		$	1,957,216			4.48		$	173,523,103		$	161,984,990		$	11,538,113			7.12
Reinsurance recoveries		(10,639,102	)		(13,247,792	)		2,608,690			(19.69	)		(40,293,602	)		(39,953,090	)		(340,512	)		0.85
Commissions		5,260,123			5,925,823			(665,700	)		(11.23	)		25,196,794			25,819,712			(622,918	)		(2.41	)
Other operating expenses		11,284,880			12,192,870			(907,990	)		(7.45	)		34,666,846			31,977,077			2,689,769			8.41
Interest expense		—			98,000			(98,000	)		—			—			98,000			(98,000	)		—
Taxes, licenses & fees		848,388			935,887			(87,499	)		(9.35	)		3,605,001			3,080,836			524,165			17.01
Incr deferred acq expense		(2,790,742	)		(3,479,444	)		688,702			(19.79	)		(11,521,719	)		(17,717,144	)		6,195,425			(34.97	)
Other expenses		—			1			(1	)		—			108			109			(1	)		(0.92	)
Total expenses	$	49,617,341		$	46,121,923		$	3,495,418			7.58		$	185,176,531		$	165,290,490		$	19,886,041			12.03
Income before income taxes	$	1,491,902		$	13,132,456		$	(11,640,554	)		(88.64	)	$	98,945,596		$	97,256,587		$	1,689,009			1.74
Provision for income taxes:
Current	$	3,120,097		$	953,701		$	2,166,396			227.16		$	7,629,012		$	6,273,558		$	1,355,454			21.61
Current capital gains/losses		(4,026,945	)		947,821			(4,974,766	)		(524.86	)		14,230,855			15,879,350			(1,648,495	)		(10.38	)
Deferred		1,103,621			2,628,721			(1,525,100	)		(58.02	)		12,018,148			12,406,344			(388,196	)		(3.13	)
Total income taxes	$	196,773		$	4,530,243		$	(4,333,470	)		(95.66	)	$	33,878,015		$	34,559,252		$	(681,237	)		(1.97	)
Net income	$	1,295,129		$	8,602,213		$	(7,307,084	)		(84.94	)	$	65,067,581		$	62,697,335		$	2,370,246			3.78

2007 Fourth-Quarter and Full-Year Financial Supplement 30

The Cincinnati Life Insurance Company
Statutory Statements of Income

	For the Three Months Ended December 31,									For the Twelve Months Ended December 31,
	2007			2006			% Change			2007			2006			% Change
Net premiums written	$	38,097,174		$	38,109,979			(0.03	)	$	157,997,206		$	153,442,227			2.97
Net investment income		29,823,157			27,053,035			10.24			114,430,186			107,656,860			6.29
Amortization of interest maintenance reserve		(306,167	)		59,928			(610.89	)		(1,034,092	)		160,205			(745.48	)
Commissions and expense allowances on reinsurance ceded		2,514,434			2,482,659			1.28			8,979,277			8,261,423			8.69
Income from fees associated with Separate Accounts		982,464			992,375			(1.00	)		4,444,171			3,552,294			25.11
Total revenues	$	71,111,062		$	68,697,977			3.51		$	284,816,748		$	273,073,009			4.30
Death benefits and matured endowments	$	8,229,655		$	8,866,654			(7.18	)	$	35,482,168		$	38,964,236			(8.94	)
Annuity benefits		7,791,125			8,580,838			(9.20	)		36,619,626			35,200,488			4.03
Disability benefits and benefits under accident and health contracts		463,903			415,184			11.73			2,095,255			1,630,523			28.50
Surrender benefits and group conversions		5,907,638			5,991,218			(1.40	)		23,386,683			22,251,863			5.10
Interest and adjustments on deposit-type contract funds		2,867,654			2,380,022			20.49			9,589,747			9,394,586			2.08
Increase in aggregate reserves for life and accident and health contracts		24,127,339			23,436,742			2.95			95,838,523			95,336,456			0.53
Payments on supplementary contracts with life contingencies		85,404			77,083			10.79			344,229			308,744			11.49
Total benefit expenses	$	49,472,718		$	49,747,741			(0.55	)	$	203,356,231		$	203,086,897			0.13
Commissions	$	7,956,702		$	8,344,872			(4.65	)	$	33,973,217		$	33,700,524			0.81
General insurance expenses and taxes		9,984,268			11,073,587			(9.84	)		39,262,688			35,288,388			11.26
Increase in loading on deferred and uncollected premiums		(528,755	)		200,324			(363.95	)		(5,865,915	)		(4,278,539	)		(37.10	)
Net transfers to or (from) Separate Accounts		—			—			—			(215,913	)		(211,220	)		(2.22	)
Other deductions		—			—			—			108			109			(0.59	)
Total operating expenses	$	17,412,215		$	19,618,783			(11.25	)	$	67,154,185		$	64,499,261			4.12
Federal and Foreign Income Taxes Incurred		2,975,587			950,983			212.90			7,422,682			5,973,699			24.26
Net gain from operations before realized capital gains or (losses)	$	1,250,542		$	(1,619,530	)		177.22		$	6,883,650		$	(486,849	)		1,513.92
Net realized gains or (losses) net of capital gains tax		(4,931,609	)		1,306,320			(477.52	)		32,400,952			28,946,326			11.93
Net Income (Statutory)	$	(3,681,067	)	$	(313,210	)		(1,075.27	)	$	39,284,602		$	28,459,477			38.04

* 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.

2007 Fourth-Quarter and Full-Year Financial Supplement 31

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
	12/31/07			09/30/07			06/30/07			03/31/07			12/31/06			09/30/06			06/30/06			03/31/06			06/30/07			06/30/06			09/30/07			09/30/06			12/31/07			12/31/06
Gross Written Premiums	$	55		$	49		$	54		$	53		$	54		$	50		$	51		$	50		$	107		$	101		$	156		$	152		$	211		$	206
Bank Owned Life Insurance (BOLI) Adjustment		—			—			—			—			—			—			—			—			—			—			—			—			—			—
Adjusted Gross Written Premiums	$	55		$	49		$	54		$	53		$	54		$	50		$	51		$	50		$	107		$	101		$	156		$	152		$	211		$	206
Insurance Expense	$	8		$	8		$	9		$	9		$	10		$	7		$	7		$	7		$	18		$	14		$	26		$	21		$	34		$	31
Expense Ratio		14.5	%		16.3	%		16.7	%		17.7	%		17.8	%		14.7	%		13.5	%		14.5	%		16.8	%		14.0	%		16.7	%		14.0	%		16.1	%		15.0	%
Expense Ratio based on Adjusted Gross Written Premium		14.5	%		16.3	%		16.7	%		17.7	%		17.8	%		14.7	%		13.5	%		14.5	%		16.8	%		14.0	%		16.7	%		14.0	%		16.1	%		15.0	%

(Dollars in millions)	Years ended December 31,
	2007			2006			2005			2004			2003			2002			2001			2000
Gross Written Premiums	$	211		$	206		$	249		$	230		$	173		$	244		$	122		$	157
Bank Owned Life Insurance (BOLI) Adjustment		—			—			—			(10	)		—			(34	)		—			(20	)
Adjusted Gross Written Premiums	$	211		$	206		$	249		$	220		$	173		$	210		$	122		$	137
Insurance Expense	$	34		$	31		$	29		$	25		$	25		$	27		$	25		$	20
Expense Ratio		16.1	%		15.0	%		11.7	%		11.1	%		14.8	%		10.9	%		20.6	%		12.9	%
Expense Ratio based on Adjusted Gross Written Premium		16.1	%		15.0	%		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.

2007 Fourth-Quarter and Full-Year Financial Supplement 32