Cincinnati Financial (CINF) 8-K Cincinnati Financial Reports First-quarter 2008 Results

Exhibit 99.2

Cincinnati Financial Corporation
Supplemental Financial Data
March 31, 2008
First Quarter

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
Standard Market Subsidiaries:		A++		—	Aa3		AA-
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 April 29, 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 our periodic filings with the U.S. Securities and Exchange Commission. The results of operations for interim periods may not be indicative of results to be expected for the full year.

Cincinnati Financial Corporation
Supplemental Financial Data
First-Quarter 2008

	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	6
Consolidated Balance Sheets	7
Quarterly Net Income Reconciliation	8
Top Holdings — Common Stocks	9
CFC Subsidiaries — Selected Balance Sheet Data	10
Property Casualty Insurance Operations
GAAP Statements of Income	11
Statutory Statements of Income	12
Statutory Quarterly Analysis — Consolidated	13
Statutory Quarterly Analysis — Commercial Lines	14
Statutory Quarterly Analysis — Personal Lines	15
Direct Written Premiums by Line of Business and State	16
Quarterly Property Casualty Data — Commercial Lines of Business	17
Quarterly Property Casualty Data — Personal Lines of Business	18
Quarterly Detailed Loss Analysis	19
Reconciliation Data
Quarterly Property Casualty Data — Consolidated	20
Quarterly Property Casualty Data — Commercial Lines	21
Quarterly Property Casualty Data — Personal Lines	22
Life Insurance Operations
GAAP Statements of Income	23
Statutory Statements of Income	24
Expenses as a Percentage of Premium	25

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.

3

Cincinnati Financial Corporation
Quick Reference — First Quarter 2008
(all data shown is for the three months ended or as of March 31, 2008)

(Based on reported data — see Pages 20-22 for adjusted data)

(Dollars in millions except share data)
Revenues:
Commercial lines net written premiums	$	625
Year-over-year percentage change		(9.8	)%
Personal lines net written premiums	$	150
Year-over-year percentage change		(2.0	)%
Property casualty net written premiums	$	776
Year-over-year percentage change		(8.3	)%
Commercial lines net earned premiums	$	574
Year-over-year percentage change		(4.9	)%
Personal lines net earned premiums	$	177
Year-over-year percentage change		(2.2)	%
Property casualty net earned premiums	$	751
Year-over-year percentage change		(4.3	)%
Life and accident and health net earned premiums	$	28
Year-over-year percentage change		3.5	%
Investment income	$	152
Year-over-year percentage change		2.6	%
Realized gains on investments	$	(232	)
Year-over-year percentage change		(474.0	)%
Other income	$	4
Year-over-year percentage change		(33.5	)%
Total revenues	$	704
Year-over-year percentage change		(31.6	)%
Income:
Operating income	$	109
Year-over-year percentage change		(29.0	)%
Net realized investment gains and losses	$	(151	)
Year-over-year percentage change		(466.9	)%
Net income (loss)	$	(42	)
Year-over-year percentage change		(121.8	%)
Per share (diluted):
Operating income	$	0.66
Year-over-year percentage change		(25.0	)%
Net realized investment gains and losses	$	(0.92	)
Year-over-year percentage change		(483.3	)%
Net income (loss)	$	(0.26	)
Year-over-year percentage change		(123.2	)%
Book value	$	33.40
Year-over-year percentage change		(14.5	)%
Weighted average shares — diluted and basic		165,105,311
Year-over-year percentage change		(4.4	)%
Benefits and expenses:
Commercial lines loss and loss expenses	$	365
Year-over-year percentage change		3.1	%
Personal lines loss and loss expenses	$	136
Year-over-year percentage change		31.0	%
Property casualty loss and loss expenses	$	501
Year-over-year percentage change		9.5	%
Life and accident and health losses and policy benefits	$	35
Year-over-year percentage change		30.4	%
Operating expenses	$	256
Year-over-year percentage change		(1.9	)%
Interest expenses	$	12
Year-over-year percentage change		(3.1	)%
Total expenses	$	804
Year-over-year percentage change		6.1	%
Net loss before income taxes	$	(100	)
Year-over-year percentage change		(137.1	)%
Total income tax benefit	$	(58	)
Year-over-year percentage change		175.9	%
Effective tax rate benefit		(57.9	%)
Ratios:
Commercial lines GAAP combined ratio		95.0	%
Personal lines GAAP combined ratio		110.1	%
Property casualty GAAP combined ratio		98.6	%
Commercial lines STAT combined ratio		93.3	%
Personal lines STAT combined ratio		110.8	%
Property casualty STAT combined ratio		97.4	%
Return on equity based upon net income		(3.0	)%
Return on equity based upon operating income		7.6	%
Balance Sheet:
Fixed maturity investments	$	5,965
Equity securities		5,629
Short-term investments		51
Other invested assets		59
Total invested assets	$	11,704
Property casualty and life loss and loss expense reserves	$	4,019
Total debt		860
Shareholders’ equity		5,449

2008 First-Quarter Supplement

4

Cincinnati Financial Corporation
Consolidated Statements of Income

	For the Three Months Ended March 31,
	2008			2007			Change			% Change
Revenues:
Premiums earned:
Property casualty	$	792,374,432		$	827,290,658		$	(34,916,226	)		(4.22	)
Life		40,068,179			38,946,474			1,121,705			2.88
Accident health		1,868,167			1,758,851			109,316			6.22
Premiums ceded		(54,095,187	)		(53,348,919	)		(746,268	)		(1.40	)
Total premiums earned		780,215,591			814,647,064			(34,431,473	)		(4.23	)
Investment income		152,233,957			148,394,366			3,839,591			2.59
Realized gain on investments		(232,536,318	)		62,178,232			(294,714,550	)		(473.98	)
Other income		3,781,644			5,688,868			(1,907,224	)		(33.53	)
Total revenues	$	703,694,874		$	1,030,908,530		$	(327,213,656	)		(31.74	)
Benefits & expenses:
Losses & policy benefits	$	562,934,824		$	515,031,815		$	47,903,009			9.30
Reinsurance recoveries		(27,137,337	)		(30,808,929	)		3,671,592			(11.92	)
Commissions		150,014,952			170,152,772			(20,137,820	)		(11.84	)
Other operating expenses		90,720,024			88,203,959			2,516,065			2.85
Interest expense		12,687,472			13,092,923			(405,451	)		(3.10	)
Taxes, licenses & fees		20,760,970			19,942,931			818,039			4.10
Incr deferred acq expense		(5,718,022	)		(15,654,691	)		9,936,669			(63.47	)
Total expenses	$	804,262,883		$	759,960,780		$	44,302,103			5.83
Income (loss) before income taxes	$	(100,568,009	)	$	270,947,750		$	(371,515,759	)		(137.12	)
Provision for income taxes:
Current operating income	$	103,422,660		$	55,525,989		$	47,896,671			86.26
Realized investments gains and losses		(81,674,979	)		21,059,042			(102,734,021	)		(487.84	)
Deferred		(80,038,415	)		234,546			(80,272,961	)		nm
Total income taxes	$	(58,290,734	)	$	76,819,577		$	(135,110,311	)		(175.88	)
Net income (loss)	$	(42,277,275	)	$	194,128,173		$	(236,405,448	)		(121.78	)
Comprehensive net income	$	(314,185,205	)	$	8,067,684		$	(322,252,889	)		(3,994.37	)
Operating income	$	108,584,064		$	153,008,983		$	(44,424,919	)		(29.03	)
Net realized investments gains and losses	$	(150,861,339	)	$	41,119,190		$	(191,980,529	)		(466.89	)
Net income per share:
Operating income	$	0.66		$	0.88		$	(0.22	)		(25.00	)
Net realized investments gains and losses		(0.92	)		0.24			(1.16	)		(483.33	)
Net income (loss) per share (basic)	$	(0.26	)	$	1.12		$	(1.38	)		(123.21	)
Operating income	$	0.66		$	0.88		$	(0.22	)		(25.00	)
Net realized investments gains and losses		(0.92	)		0.23			(1.15	)		(500.00	)
Net income (loss) per share (diluted)	$	(0.26	)	$	1.11		$	(1.37	)		(123.42	)
Dividends per share:
Paid	$	0.355		$	0.335		$	0.02			5.97
Declared		0.390			0.355			0.04			9.86
Number of shares:
Weighted avg — basic		165,105,311			172,648,988			(7,543,677	)		(4.37	)
Weighted avg — diluted		165,105,311			174,274,157			(9,168,846	)		(5.26	)

Due to net loss from operations, basic and diluted shares are the same.

2008 First-Quarter Supplement

5

Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Three Months Ended March 31, 2008

	Total			CFC			CONSOL P&C			CLIC			CFC-I			CINFIN			C-SUPR			ELIM
Revenues:
Premiums earned:
Property casualty	$	792,374,432		$	—		$	792,726,747		$	—		$	—		$	—		$	—		$	(352,315	)
Life		40,068,179			—			—			40,068,179			—			—			—			—
Accident health		1,868,167			—			—			1,868,167			—			—			—			—
Premiums ceded		(54,095,187	)		—			(41,605,790	)		(12,489,397	)		—			—			—			—
Total earned premium		780,215,591			—			751,120,957			29,446,949			—			—			—			(352,315	)
Investment income		152,233,957			25,533,643			98,005,135			29,080,394			120,482			73,957			18,079			(597,733	)
Realized gain on investments		(232,536,318	)		(80,895,546	)		(141,711,858	)		(9,802,238	)		101,191			(330,672	)		—			102,805
Other income		3,781,644			2,397,287			812,916			742,390			2,211,844			601,217			50,626			(3,034,636	)
Total revenues	$	703,694,874		$	(52,964,616	)	$	708,227,150		$	49,467,495		$	2,433,517		$	344,502		$	68,705		$	(3,881,879	)
Benefits & expenses:
Losses & policy benefits	$	562,934,824		$	—		$	523,598,838		$	39,885,436		$	—		$	—		$	—		$	(549,450	)
Reinsurance recoveries		(27,137,337	)		—			(22,779,189	)		(4,358,148	)		—			—			—			—
Commissions		150,014,952			27,500			143,705,340			6,282,112			—			—			—			—
Other operating expenses		90,720,024			5,737,805			80,238,330			6,288,651			1,216,345			136,873			415,083			(3,313,063	)
Interest expense		12,687,472			12,243,043			88,250			—			701,054			—			—			(344,875	)
Taxes, licenses & fees		20,760,970			303,054			19,478,307			1,012,324			8,197			(48,750	)		7,838			—
Incr deferred acq expenses		(5,718,022	)		—			(3,681,293	)		(2,036,729	)		—			—			—			—
Total expenses	$	804,262,883		$	18,311,402		$	740,648,583		$	47,073,646		$	1,925,596		$	88,123		$	422,921		$	(4,207,388	)
Income before income taxes	$	(100,568,009	)	$	(71,276,018	)	$	(32,421,433	)	$	2,393,849		$	507,921		$	256,379		$	(354,216	)	$	325,509
Provision for income taxes:
Current operating income	$	103,422,660		$	25,487,163		$	69,893,041		$	7,672,506		$	180,587		$	302,343		$	(112,980	)	$	—
Capital gains/losses		(81,674,979	)		(28,368,441	)		(49,815,437	)		(3,410,783	)		35,417			(115,735	)		—			—
Deferred		(80,038,415	)		(28,332,796	)		(48,124,851	)		(3,583,310	)		12,010			(113,696	)		(9,701	)		113,929
Total income tax	$	(58,290,734	)	$	(31,214,074	)	$	(28,047,247	)	$	678,413		$	228,014		$	72,912		$	(122,681	)	$	113,929
Net income — current year	$	(42,277,275	)	$	(40,061,944	)	$	(4,374,186	)	$	1,715,436		$	279,907		$	183,467		$	(231,535	)	$	211,580
Net income — prior year	$	194,128,173		$	19,131,342		$	153,929,611		$	17,938,221		$	616,275		$	260,999		$	—		$	2,251,725
Change in net income		-121.8	%		-309.4	%		-102.8	%		-90.4	%		-54.6	%		-29.7	%		N/A

2008 First-Quarter Supplement

6

Cincinnati Financial Corporation
Consolidated Balance Sheets

	March 31,			December 31,
(Dollars in millions except per share data)	2008			2007
	(unaudited)
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2008—$5,924; 2007—$5,783) (includes securities pledged to creditors: 2008—$622; 2007—$745)	$	5,965		$	5,848
Equity securities, at fair value (cost: 2007—$2,975; 2006—$2,621)		5,629			6,249
Short-term investments, at fair value (amortized cost: 2008—$51; 2007—$101)		51			101
Other invested assets		59			63
Total investments		11,704			12,261
Cash and cash equivalents		237			226
Securities lending collateral		619			760
Investment income receivable		118			124
Finance receivable		84			92
Premiums receivable		1,113			1,107
Reinsurance receivable		757			754
Prepaid reinsurance premiums		13			13
Deferred policy acquisition costs		472			461
Land, building and equipment, net, for company use (accumulated depreciation: 2008—$284; 2007—$276)		242			239
Other assets		49			72
Separate accounts		537			528
Total assets	$	15,945		$	16,637
Liabilities
Insurance reserves
Losses and loss expense	$	4,019		$	3,967
Life policy reserves		1,505			1,478
Unearned premiums		1,585			1,564
Securities lending payable		635			760
Other liabilities		605			574
Deferred income tax		750			977
Notes payable		69			69
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		537			528
Total liabilities		10,496			10,708
Shareholders’ equity
Common stock, par value—$2 per share; authorized: 2008—500 million shares, 2007—500 million shares; issued: 2008—196 million shares, 2007—196 million shares		393			393
Paid-in capital		1,055			1,049
Retained Earnings		3,298			3,404
Accumulated other comprehensive income		1,880			2,151
Treasury stock at cost (2008—33 million shares, 2007—30 million shares)		(1,177	)		(1,068	)
Total shareholders’ equity		5,449			5,929
Total liabilities and shareholders’ equity	$	15,945		$	16,637

2008 First-Quarter Supplement

7

Cincinnati Financial Corporation

Quarterly Net Income Reconciliation

	Three months ended																	Six months ended				Nine months ended				Twelve months ended
(In millions except per share data)	12/31/08	9/30/08	6/30/08	3/31/08			12/31/07		9/30/07			6/30/07			3/31/07			6/30/08	6/30/07			9/30/08	9/30/07			12/31/08	12/31/07
Net income (loss)				$	(42	)	$	187	$	124		$	351		$	194			$	545			$	669			$	855
Net realized investment gains and losses					(151	)		8		10			187			41				228				238				245
Operating income					109			179		114			164			153				317				431				610
Less catastrophe losses					(28	)		1		(9	)		(7	)		(2	)			(9	)			(18	)			(17	)
Operating income before catastrophe losses				$	137		$	178	$	123		$	171		$	155			$	326			$	449			$	627
Diluted per share data
Net income (loss)				$	(0.26	)	$	1.11	$	0.72		$	2.02		$	1.11			$	3.13			$	3.86			$	4.97
Net realized investment gains and losses					(0.92	)		0.04		0.06			1.08			0.23				1.31				1.37				1.43
Operating income					0.66			1.07		0.66			0.94			0.88				1.82				2.49				3.54
Less catastrophe losses					(0.17	)		0.01		(0.05	)		(0.04	)		(0.01	)			(0.05	)			(0.10	)			(0.10	)
Operating income before catastrophe losses				$	0.83		$	1.06	$	0.71		$	0.98		$	0.89			$	1.87			$	2.59			$	3.64

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.

2008 First-Quarter Supplement

8

Cincinnati Financial Corporation

Top Holdings — Common Stocks

	As of and for the three months ended March 31, 2008
								Earned
			Fair		Percent of			dividend
(Dollars in millions)	Cost		value		fair value			income
Fifth Third Bancorp	$	185	$	1,408		26.3	%	$	30
The Procter & Gamble Company		206		527		9.8			3
Exxon Mobil Corporation		58		437		8.2			2
U.S. Bancorp		270		338		6.3			4
PNC Financial Services Group, Inc.		62		308		5.8			3
Johnson & Johnson		220		262		4.9			2
AllianceBernstein Holding L.P.		113		248		4.6			4
Wells Fargo & Company		128		187		3.5			2
Wyeth		62		185		3.4			1
Piedmont Natural Gas Company, Inc.		64		148		2.8			1
General Electric Co.		106		116		2.2			1
Chevron Corporation		56		113		2.1			1
Huntington Bancshares Inc		111		111		2.1			3
All other common stock holdings		811		966		18.0			11
Total	$	2,452	$	5,354		100.0	%	$	68

2008 First-Quarter Supplement

9

Cincinnati Financial Corporation Subsidiaries

Selected Balance Sheet Data

(Dollars in millions)	12/31/2008		9/30/2008		6/30/2008		3/31/2008		12/31/2007		9/30/2007		6/30/2007			3/31/2007
Cincinnati Insurance Property Casualty Group
Fixed Maturities and Equities (Fair Value)	$	—	$	—	$	—	$	8,628	$	8,940	$	9,586	$	9,850		$	9,837
Fixed Maturities — Pretax Net Unrealized Gain (Loss)		—		—		—		39		58		23		(30	)		44
Equities — Pretax Net Unrealized Gain (Loss)		—		—		—		1,831		2,077		2,657		2,917			3,017
Loss and Loss Expense Reserves — STAT		—		—		—		3,448		3,398		3,461		3,374			3,373
Surplus — STAT		—		—		—		4,027		4,307		4,782		4,937			4,741
The Cincinnati Life Insurance Company
Fixed Maturities and Equities (Fair Value)	$	—	$	—	$	—	$	1,841	$	1,887	$	1,952	$	1,922		$	1,938
Fixed Maturities — Pretax Net Unrealized Gain (Loss)		—		—		—		0		6		4		(4	)		20
Equities — Pretax Net Unrealized Gain (Loss)		—		—		—		127		162		225		254			305
Equity — GAAP		—		—		—		661		685		724		730			739
Surplus — STAT		—		—		—		453		477		485		491			483

	12/31/2006		9/30/2006		6/30/2006			3/31/2006		12/31/2005		9/30/2005		6/30/2005		3/31/2005
Cincinnati Insurance Property Casualty Group
Fixed Maturities and Equities (Fair Value)	$	9,882	$	9,393	$	8,987		$	9,261	$	8,947	$	8,833	$	8,802	$	8,710
Fixed Maturities — Pretax Net Unrealized Gain (Loss)		47		51		(55	)		2		50		86		152		99
Equities — Pretax Net Unrealized Gain (Loss)		3,166		2,859		2,621			2,758		2,803		2,807		2,903		2,931
Loss and Loss Expense Reserves — STAT		3,356		3,314		3,237			3,169		3,111		3,150		3,065		3,031
Surplus — STAT		4,750		4,607		4,342			4,334		4,220		4,224		4,180		4,065
The Cincinnati Life Insurance Company
Fixed Maturities and Equities (Fair Value)	$	1,916	$	1,893	$	1,803		$	1,827	$	1,788	$	1,797	$	1,748	$	1,688
Fixed Maturities — Pretax Net Unrealized Gain (Loss)		15		17		(17	)		6		31		45		70		53
Equities — Pretax Net Unrealized Gain (Loss)		307		271		238			256		266		274		275		257
Equity — GAAP		719		688		652			666		651		348		655		622
Surplus — STAT		479		461		459			470		451		447		447		440

2008 First-Quarter Supplement

10

Cincinnati Insurance Group

GAAP Statements of Income

	For the Three Months Ended March 31,
	2008			2007			Change			% Change
Revenues:
Premiums earned:
Property casualty	$	792,726,747		$	827,572,247		$	(34,845,500	)		(4.21	)
Premiums ceded		(41,605,790	)		(43,062,577	)		1,456,787			(3.38	)
Total premiums earned		751,120,957			784,509,670			(33,388,713	)		(4.26	)
Investment income		98,005,135			96,609,154			1,395,981			1.44
Realized gain on investments		(141,711,858	)		29,908,765			(171,620,623	)		(573.81	)
Other income		812,916			1,587,659			(774,743	)		(48.80	)
Total revenues	$	708,227,150		$	912,615,248		$	(204,388,098	)		(22.40	)
Benefits & expenses:
Losses & policy benefits	$	523,598,838		$	478,692,221		$	44,906,617			9.38
Reinsurance recoveries		(22,779,189	)		(21,156,004	)		(1,623,185	)		7.67
Commissions		143,705,340			161,213,497			(17,508,157	)		(10.86	)
Other operating expenses		80,238,330			77,503,733			2,734,597			3.53
Interest expense		88,250			—			88,250			—
Taxes, licenses & fees		19,478,307			18,655,793			822,514			4.41
Incr deferred acq expense		(3,681,293	)		(11,718,254	)		8,036,961			(68.58	)
Total expenses	$	740,648,583		$	703,190,986		$	37,457,597			5.33
Income before income taxes	$	(32,421,433	)	$	209,424,262		$	(241,845,695	)		(115.48	)
Provision for income taxes:
Current operating income	$	69,893,041		$	50,616,959		$	19,276,082			38.08
Current realized investments gains and losses		(49,815,437	)		10,633,068			(60,448,505	)		(568.50	)
Deferred		(48,124,851	)		(5,755,376	)		(42,369,475	)		736.17
Total income taxes	$	(28,047,247	)	$	55,494,651		$	(83,541,898	)		(150.54	)
Net income (loss)	$	(4,374,186	)	$	153,929,611		$	(158,303,797	)		(102.84	)

2008 First-Quarter Supplement

11

Cincinnati Insurance Group

Statutory Statements of Income

	For the Three Months Ended March 31,
	2008			2007		% Change
Underwriting income
Net premiums written	$	774,719,939		$	845,799,750		(8.40	)
Unearned premiums increase		23,608,231			61,290,080		(61.48	)
Earned premiums		751,111,708			784,509,670		(4.26	)
Losses incurred	$	417,447,483		$	370,753,035		12.59
Allocated loss expenses incurred		37,182,273			39,076,308		(4.85	)
Unallocated loss expenses incurred		46,020,141			47,706,874		(3.54	)
Other underwriting expenses incurred		231,847,644			244,742,340		(5.27	)
Workers compensation dividend incurred		4,983,552			3,649,164		36.57
Total underwriting deductions	$	737,481,093		$	705,927,720		4.47
Net underwriting gain (loss)	$	13,630,614		$	78,581,950		(82.65	)
Investment income
Gross investment income earned	$	96,728,928		$	97,847,031		(1.14	)
Net investment income earned		95,443,720			96,629,259		(1.23	)
Net realized capital gains		(89,765,156	)		19,559,182		(558.94	)
Net investment gains (excl. subs)	$	5,678,564		$	116,188,441		(95.11	)
Dividend from subsidiary		—			—		—
Net investment gains	$	5,678,564		$	116,188,441		(95.11	)
Other income	$	384,182		$	1,516,535		(74.67	)
Net income before federal income taxes	$	19,693,360		$	196,286,926		(89.97	)
Federal and foreign income taxes incurred	$	68,331,959		$	49,751,322		37.35
Net income (loss) (statutory)	$	(48,638,599	)	$	146,535,605		(133.19	)

* 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.

2008 First-Quarter Supplement

12

Cincinnati Insurance Group — Consolidated

Statutory Quarterly Analysis

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

	Three months ended																		Six months ended				Nine months ended				Twelve months ended
(Dollars in millions)	12/31/08	9/30/08	6/30/08	3/31/08			12/31/07			9/30/07			6/30/07			3/31/07			6/30/08	6/30/07			9/30/08	9/30/07			12/31/08	12/31/07
Net premiums written				$	775		$	724		$	736		$	810		$	846			$	1,656			$	2,393			$	3,117
Net premiums earned				$	751		$	777		$	777		$	786		$	785			$	1,571			$	2,348			$	3,125
Losses paid				$	383		$	375		$	363		$	380		$	364			$	744			$	1,107			$	1,481
Loss reserve change					35			(83	)		69			(16	)		6				(9	)			60				(24	)
Total losses incurred				$	418		$	292		$	432		$	364		$	370			$	735			$	1,167			$	1,457
Allocated loss expense paid					25			37			29			33			32				65				94				131
Allocated loss expense reserve change					12			26			15			16			8				24				39				65
Total allocated loss expense incurred				$	37		$	63		$	44		$	49		$	39			$	89			$	133			$	196
Unallocated loss expense paid					43			46			44			41			46				87				132				178
Unallocated loss expense reserve change					4			(6	)		4			1			2				3				6				2
Total unallocated loss expense incurred				$	47		$	40		$	48		$	42		$	48			$	90			$	138			$	180
Underwriting expenses incurred					237			267			230			242			249				489				719				988
Underwriting profit (loss)				$	12		$	115		$	23		$	89		$	79			$	168			$	191			$	304
Ratio Data
Loss ratio					55.5	%		37.5	%		55.6	%		46.3	%		47.2	%			46.8	%			49.7	%			46.7	%
Allocated loss expense ratio					5.0			8.1			5.7			6.3			5.0				5.7				5.7				6.3
Unallocated loss expense ratio					6.1			5.3			6.1			5.3			6.1				5.7				5.8				5.7
Net underwriting expense ratio					30.6			37.0			31.3			29.8			29.4				29.5				30.1				31.7
Statutory combined ratio					97.2	%		87.9	%		98.7	%		87.7	%		87.7	%			87.7	%			91.3	%			90.4	%
Statutory combined ratio excluding catastrophes					91.5	%		88.1	%		97.0	%		86.3	%		87.3	%			86.8	%			90.1	%			89.5	%
Loss Detail
New losses $250,000-$500,000				$	29		$	29		$	24		$	22		$	23			$	45			$	69			$	98
New losses $500,000-$750,000					12			16			14			15			15				30				44				60
New losses $750,000-$1,000,000					9			13			9			9			10				19				28				41
New losses $1,000,000-$2,000,000					22			24			26			26			28				54				80				104
New losses $2,000,000-$4,000,000					22			36			50			17			22				39				89				125
New losses greater than $4,000,000					—			—			5			—			—				—				5				5
Case reserve development above $250,000					48			68			50			48			53				101				151				219
Large losses subtotal				$	142		$	186		$	178		$	137		$	151			$	288			$	466			$	652
IBNR incurred					6			(43	)		—			7			7				15				15				(25	)
Catastrophe losses incurred					43			(2	)		13			11			3				15				28				26
Remaining incurred					227			151			241			209			210				417				658				804
Total losses incurred				$	418		$	292		$	432		$	364		$	371			$	735			$	1,167			$	1,457
Loss Ratio
New losses $250,000-$500,000					3.9	%		3.7	%		3.1	%		2.8	%		2.9	%			2.9	%			2.9	%			3.1	%
New losses $500,000-$750,000					1.6			2.1			1.8			1.9			1.9				1.9				1.9				1.9
New losses $750,000-$1,000,000					1.2			1.7			1.2			1.1			1.3				1.2				1.2				1.3
New losses $1,000,000-$2,000,000					2.9			3.1			3.3			3.3			3.6				3.4				3.4				3.3
New losses $2,000,000-$4,000,000					2.9			4.6			6.4			2.2			2.8				2.5				3.8				4.0
New losses greater than $4,000,000					—			—			0.6			—			—				—				0.2				0.2
Case reserve development above $250,000					6.4			8.8			6.4			6.1			6.8				6.4				6.4				7.0
Large losses subtotal					18.9	%		23.9	%		22.9	%		17.4	%		19.2	%			18.3	%			19.8	%			20.9	%
IBNR incurred					0.8			(5.5	)		—			0.9			1.0				0.9				0.6				(0.9	)
Total catastrophe losses incurred					5.7			(0.2	)		1.7			1.4			0.4				0.9				1.2				0.8
Remaining incurred					30.1			19.3			31.0			26.6			26.6				26.7				28.1				25.9
Total loss ratio					55.5	%		37.5	%		55.6	%		46.3	%		47.2	%			46.8	%			49.7	%			46.7	%
Loss Claim Count
New losses $250,000-$500,000					87			88			75			67			72				139				214				302
New losses $500,000-$750,000					21			27			25			26			24				50				75				102
New losses $750,000-$1,000,000					10			16			11			11			12				23				34				50
New losses $1,000,000-$2,000,000					19			18			21			21			21				42				63				81
New losses $2,000,000-$4,000,000					7			12			16			5			7				12				28				40
New losses greater than $4,000,000					—			—			1			—			—				—				1				1
Case reserve development above $250,000					81			112			93			82			93				175				268				380
Large losses total					225			273			242			212			229				441				683				956

*	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.

2008 First-Quarter Supplement

13

Cincinnati Insurance Group — Commercial Lines

Statutory Quarterly Analysis

(Based on reported data — see Page 21 for adjusted data)

	Three months ended																		Six months ended				Nine months ended				Twelve months ended
(Dollars in millions)	12/31/08	9/30/08	6/30/08	3/31/08			12/31/07			9/30/07			6/30/07			3/31/07			6/30/08	6/30/07			9/30/08	9/30/07			12/31/08	12/31/07
Net premiums written				$	625		$	562		$	544		$	613		$	693			$	1,306			$	1,851			$	2,413
Net premiums earned				$	574		$	601		$	600		$	606		$	604			$	1,210			$	1,810			$	2,411
Losses paid				$	266		$	272		$	253		$	270		$	259			$	530			$	783			$	1,055
Loss reserve change					32			(53	)		66			(12	)		23				11				77				23
Total losses incurred				$	298		$	219		$	319		$	258		$	282			$	541			$	860			$	1,078
Allocated loss expense paid					22			33			26			30			28				58				84				117
Allocated loss expense reserve change					12			27			16			16			8				24				40				67
Total allocated loss expense incurred				$	34		$	60		$	42		$	46		$	36			$	82			$	124			$	184
Unallocated loss expense paid					30			34			31			30			33				63				94				128
Unallocated loss expense reserve change					3			(3	)		4			1			3				4				8				5
Total unallocated loss expense incurred				$	33		$	31		$	35		$	31		$	36			$	67			$	102			$	133
Underwriting expenses incurred					186			215			170			179			193				371				541				757
Underwriting profit (loss)				$	23		$	76		$	34		$	92		$	57			$	149			$	183			$	259
Ratio Data
Loss ratio					52.0	%		36.4	%		53.2	%		42.6	%		46.8	%			44.7	%			47.5	%			44.8	%
Allocated loss expense ratio					5.9			9.9			7.0			7.6			6.0				6.8				6.8				7.6
Unallocated loss expense ratio					5.7			5.2			5.8			5.1			5.9				5.5				5.6				5.5
Net underwriting expense ratio					29.7			38.2			31.2			29.1			27.8				28.4				29.3				31.4
Statutory combined ratio					93.3	%		89.7	%		97.2	%		84.4	%		86.5	%			85.4	%			89.2	%			89.3	%
Statutory combined ratio excluding catastrophes					89.4	%		89.7	%		97.1	%		83.6	%		84.7	%			84.1	%			88.3	%			88.6	%
Loss Detail
New losses $250,000-$500,000				$	23		$	21		$	18		$	16		$	18			$	34			$	52			$	73
New losses $500,000-$750,000					9			14			11			12			12				24				35				49
New losses $750,000-$1,000,000					8			11			8			6			9				15				23				34
New losses $1,000,000-$2,000,000					18			19			25			23			23				46				71				90
New losses $2,000,000-$4,000,000					22			34			43			13			22				35				78				112
New losses greater than $4,000,000					—			—			5			—			—				—				5				5
Case reserve development above $250,000					44			60			45			46			49				95				140				200
Large losses subtotal				$	124		$	159		$	155		$	116		$	133			$	249			$	404			$	563
IBNR incurred					6			(29	)		—			6			7				14				14				(12	)
Catastrophe losses incurred					22			—			1			5			10				16				17				16
Remaining incurred					146			89			163			131			132				262				425				511
Total losses incurred				$	298		$	219		$	319		$	258		$	282			$	541			$	860			$	1,078
Loss Ratio
New losses $250,000-$500,000					4.0	%		3.4	%		3.0	%		2.6	%		2.8	%			2.7	%			2.9	%			2.9	%
New losses $500,000-$750,000					1.5			2.2			1.8			2.0			2.0				2.0				1.9				2.0
New losses $750,000-$1,000,000					1.3			1.8			1.3			1.0			1.5				1.2				1.3				1.4
New losses $1,000,000-$2,000,000					3.2			3.2			4.2			3.8			3.8				3.8				3.9				3.7
New losses $2,000,000-$4,000,000					3.9			5.7			7.2			2.1			3.6				2.9				4.3				4.5
New losses greater than $4,000,000					—			—			0.8			—			—				—				0.3				0.2
Case reserve development above $250,000					7.8			10.1			7.5			7.6			8.1				7.8				7.6				8.3
Large losses subtotal					21.7	%		26.4	%		25.8	%		19.1	%		21.8	%			20.4	%			22.2	%			23.2	%
IBNR incurred					1.0			(4.8	)		—			1.0			1.2				1.1				0.8				(0.5	)
Total catastrophe losses incurred					3.9			—			0.2			0.8			1.8				1.3				0.9				0.7
Remaining incurred					25.4			14.8			27.2			21.7			22.0				21.9				23.6				21.4
Total loss ratio					52.0	%		36.4	%		53.2	%		42.6	%		46.8	%			44.7	%			47.5	%			44.8	%
Loss Claim Count
New losses $250,000-$500,000					68			64			57			49			57				106				163				227
New losses $500,000-$750,000					16			23			20			21			20				41				61				84
New losses $750,000-$1,000,000					9			13			9			7			11				18				27				40
New losses $1,000,000-$2,000,000					16			14			20			19			17				36				56				70
New losses $2,000,000-$4,000,000					7			11			14			4			7				11				25				36
New losses greater than $4,000,000					—			—			1			—			—				—				1				1
Case reserve development above $250,000					74			96			80			75			85				160				240				336
Large losses total					190			221			201			175			197				372				573				794

*	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.

2008 First-Quarter Supplement

14

Cincinnati Insurance Group — Personal Lines
Statutory Quarterly Analysis
(Based on reported data — see Page 22 for adjusted data)

							Three months ended												Six months ended				Nine months ended				Twelve months ended
(Dollars in millions)	12/31/08	9/30/08	6/30/08	3/31/08			12/31/07			9/30/07			6/30/07			3/31/07			6/30/08	6/30/07			9/30/08	9/30/07			12/31/08	1/3/00
Net premiums written				$	150		$	162		$	192		$	197		$	153			$	350			$	542			$	704
Net premiums earned				$	177		$	176		$	177		$	180		$	181			$	361			$	538			$	714
Losses paid				$	116		$	103		$	110		$	110		$	105			$	214			$	324			$	426
Loss reserve change					3			(30	)		3			(4	)		(17	)			(20	)			(17	)			(47	)
Total losses incurred				$	119		$	73		$	113		$	106		$	88			$	194			$	307			$	379
Allocated loss expense paid					3			4			3			3			4				7				10				14
Allocated loss expense reserve change					—			(1	)		(1	)		—			—				—				(1	)			(2	)
Total allocated loss expense incurred				$	3		$	3		$	2		$	3		$	4			$	7			$	9			$	12
Unallocated loss expense paid					13			12			13			11			13				24				38				50
Unallocated loss expense reserve change					1			(3	)		—			—			(1	)			(1	)			(2	)			(3	)
Total unallocated loss expense incurred				$	14		$	9		$	13		$	11		$	12			$	23			$	36			$	47
Underwriting expenses incurred					51			52			60			63			56				118				178				231
Underwriting profit (loss)				$	(10	)	$	39		$	(11	)	$	(3	)	$	22			$	19			$	8			$	45
Ratio Data
Loss ratio					67.4	%		41.3	%		63.8	%		58.6	%		48.9	%			53.8	%			57.1	%			53.2	%
Allocated loss expense ratio					1.9			1.8			1.4			1.9			1.8				1.9				1.7				1.7
Unallocated loss expense ratio					7.4			5.5			7.3			6.2			6.6				6.4				6.7				6.4
Net underwriting expense ratio					34.1			32.8			31.1			31.9			36.2				33.7				32.8				32.8
Statutory combined ratio					110.8	%		81.4	%		103.6	%		98.6	%		93.5	%			95.8	%			98.3	%			94.1	%
Statutory combined ratio excluding catastrophes					99.2	%		82.4	%		96.6	%		95.1	%		97.6	%			96.1	%			96.2	%			92.8	%
Loss Detail
New losses $250,000-$500,000				$	6		$	8		$	6		$	6		$	5			$	11			$	17			$	25
New losses $500,000-$750,000					3			2			3			3			3				6				9				11
New losses $750,000-$1,000,000					1			2			1			3			1				4				5				7
New losses $1,000,000-$2,000,000					4			5			1			3			5				8				9				14
New losses $2,000,000-$4,000,000					—			2			7			4			—				4				11				13
New losses greater than $4,000,000					—			—			—			—			—				—				—				—
Case reserve development above $250,000					4			8			5			2			4				6				11				19
Large losses subtotal				$	18		$	27		$	23		$	21		$	18			$	39			$	62			$	89
IBNR incurred					—			(14	)		—			1			—				1				1				(13	)
Catastrophe losses incurred					21			(2	)		12			6			(7	)			(1	)			11				10
Remaining incurred					80			62			78			78			77				155				233				293
Total losses incurred				$	119		$	73		$	113		$	106		$	88			$	194			$	307			$	379
Loss Ratio
New losses $250,000-$500,000					3.6	%		4.5	%		3.4	%		3.3	%		3.0	%			3.1	%			3.3	%			3.6	%
New losses $500,000-$750,000					1.5			1.1			1.7			1.7			1.9				1.8				1.7				1.5
New losses $750,000-$1,000,000					0.4			1.1			0.6			1.7			0.7				1.1				0.9				1.0
New losses $1,000,000-$2,000,000					2.1			2.8			0.6			1.7			3.0				2.3				1.7				2.0
New losses $2,000,000-$4,000,000					—			1.0			4.1			2.2			—				1.1				2.1				1.8
New losses greater than $4,000,000					—			—			—			—			—				—				—				—
Case reserve development above $250,000					2.5			4.4			2.9			1.2			2.2				1.8				2.1				2.7
Large losses subtotal					10.0	%		15.1	%		13.2	%		11.8	%		10.6	%			11.2	%			11.8	%			12.6	%
IBNR incurred					0.2			(7.8	)		—			0.4			—				0.2				0.1				(1.8	)
Total catastrophe losses incurred					11.6			(1.0	)		7.0			3.5			(4.1	)			(0.3	)			2.1				1.3
Remaining incurred					45.6			35.0			43.6			42.9			42.4				42.7				43.1				41.1
Total loss ratio					67.4	%		41.3	%		63.8	%		58.6	%		48.9	%			53.8	%			57.1	%			53.2	%
Loss Claim Count
New losses $250,000-$500,000					19			24			18			18			15				33				51				75
New losses $500,000-$750,000					5			4			5			5			4				9				14				18
New losses $750,000-$1,000,000					1			3			2			4			1				5				7				10
New losses $1,000,000-$2,000,000					3			4			1			2			4				6				7				11
New losses $2,000,000-$4,000,000					—			1			2			1			—				1				3				4
New losses greater than $4,000,000					—			—			—			—			—				—				—				—
Case reserve development above $250,000					7			16			13			7			8				15				28				44
Large losses total					35			52			41			37			32				69				110				162

*	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.

2008 First-Quarter Supplement

15

Cincinnati Insurance Group.

Direct Written Premiums by Risk State by Line of Business for the Three Months Ended March 31, 2008

(Dollars in millions)

																						3/31/2008		3/31/2007		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	$	4.9	$	3.9	$	2.0	$	0.3		$	2.0	$	0.6	$	0.1	$	3.5	$	5.5	$	1.1	$	24.0	$	24.5		(9.4	)		9.8			(2.2	)
AZ		4.1		1.9		2.9		0.2			0.2		0.2		0.3		0.0		0.0		0.0		9.8		8.7		12.8			(9.4	)		12.6
AR		2.6		2.5		1.7		1.4			0.9		0.3		0.1		0.7		0.7		0.2		11.0		11.3		(2.4	)		0.1			(2.1	)
DE		0.2		0.2		0.2		0.5			0.1		0.0		0.0		0.0		0.0		0.0		1.1		1.4		(14.0	)		—			(14.0	)
FL		8.3		6.8		3.6		0.5			0.8		0.7		0.2		3.0		4.8		0.9		29.8		35.6		(12.8	)		(23.6	)		(16.2	)
GA		7.8		5.1		4.7		4.4			1.8		1.6		0.2		6.8		6.2		1.8		40.4		40.5		(2.1	)		3.0			(0.0	)
ID		2.7		1.1		1.3		0.1			0.3		0.4		0.1		0.0		0.0		0.0		5.9		5.6		7.5			—			7.5
IL		18.2		12.2		9.4		17.2			3.4		2.1		0.6		5.0		3.9		1.5		73.5		80.5		(9.7	)		(0.7	)		(8.3	)
IN		14.0		10.1		7.3		9.2			2.0		2.0		0.6		5.7		5.4		1.5		57.9		63.3		(11.4	)		1.9			(8.5	)
IA		5.0		3.2		2.4		7.7			1.2		0.8		0.2		0.7		0.9		0.4		22.4		24.3		(7.4	)		(10.4	)		(7.7	)
KS		2.0		2.1		1.3		2.9			0.8		0.3		0.1		0.9		1.2		0.3		11.9		12.8		(7.5	)		(4.1	)		(6.9	)
KY		5.7		5.0		4.0		1.0			1.3		0.8		0.2		4.2		3.3		0.9		26.4		26.5		(2.3	)		4.1			(0.4	)
MD		3.7		1.3		2.6		2.6			0.3		0.4		0.1		0.0		0.4		0.1		11.5		13.0		(12.1	)		23.0			(11.1	)
MI		8.2		5.0		4.0		5.4			3.0		1.4		0.4		2.4		2.9		0.7		33.3		39.9		(17.4	)		(11.4	)		(16.4	)
MN		6.6		4.1		2.6		2.3			0.9		0.7		0.3		1.3		1.2		0.9		20.9		25.3		(18.9	)		(7.7	)		(17.2	)
MO		7.7		4.6		3.0		4.8			1.4		0.5		0.2		0.5		0.9		0.2		23.8		26.1		(8.6	)		(13.4	)		(9.0	)
MT		5.0		1.4		1.8		0.0			0.2		0.2		0.1		0.0		0.0		0.0		8.8		8.4		5.7			20.9			5.7
NE		1.7		1.3		1.0		2.2			0.4		0.4		0.1		0.2		0.2		0.1		7.6		8.0		(3.5	)		(16.4	)		(4.5	)
NH		0.7		0.5		0.3		0.8			0.2		0.2		0.0		0.2		0.1		0.1		3.1		3.6		(14.0	)		(8.5	)		(13.4	)
NY		6.3		1.5		2.0		0.5			0.4		0.4		0.1		0.0		0.0		0.0		11.3		13.8		(17.8	)		4.9			(17.7	)
NC		10.2		6.7		5.4		8.0			3.0		1.5		0.3		0.2		0.4		0.7		36.5		40.2		(9.3	)		1.1			(9.0	)
ND		1.6		1.0		0.8		0.0			0.2		0.3		0.1		0.1		0.1		0.0		4.1		3.9		9.5			(20.8	)		7.2
OH		43.3		23.9		17.3		(0.4	)		4.8		6.3		1.2		26.8		18.8		6.6		148.8		158.0		(9.7	)		(1.9	)		(5.6	)
PA		12.4		7.6		8.2		17.3			2.7		1.3		0.5		1.6		1.2		0.8		53.7		55.6		(3.4	)		(3.3	)		(3.4	)
SC		3.3		1.8		1.7		1.8			0.7		0.7		0.1		0.0		0.0		0.0		10.1		11.1		(9.2	)		(13.5	)		(9.2	)
SD		1.2		0.8		0.6		1.4			0.1		0.1		0.0		0.0		0.0		0.0		4.3		4.7		(8.1	)		(20.0	)		(8.1	)
TN		6.3		4.7		3.3		4.2			2.2		1.1		0.3		1.9		2.0		0.7		26.6		30.3		(14.3	)		1.7			(11.9	)
UT		3.0		1.1		1.6		0.0			0.1		0.3		0.1		0.0		0.0		0.0		6.4		6.1		6.8			—			6.9
VT		1.2		0.9		0.7		1.6			0.2		0.1		0.1		0.2		0.2		0.1		5.3		5.9		(9.9	)		(8.5	)		(9.8	)
VA		9.4		6.7		6.3		7.0			1.3		1.1		0.3		1.9		1.6		0.6		36.2		41.4		(13.3	)		(6.5	)		(12.6	)
WV		2.1		1.3		1.5		0.0			0.7		0.1		0.1		0.0		0.1		0.1		6.0		7.5		(19.6	)		(25.3	)		(19.8	)
WI		8.2		4.9		3.1		8.9			1.2		0.9		0.4		1.8		1.5		0.7		31.6		33.8		(6.5	)		(5.1	)		(6.3	)
All Other		1.7		1.5		1.1		1.7			0.0		0.5		0.1		0.0		0.1		0.0		6.6		6.8		(3.2	)		7.6			(3.0	)
Total	$	219.1	$	137.0	$	109.7	$	115.8		$	39.1	$	28.2	$	7.5	$	69.7	$	63.5	$	21.0	$	810.7	$	878.1		(8.7	)		(2.7	)		(7.6	)
Other Direct		0.3		0.6		0.2		1.8			0.1		0.0		0.0		0.1		0.9		0.4		4.4		3.5		38.6			10.1			28.2
Total Direct	$	219.4	$	137.6	$	109.9	$	117.6		$	39.2	$	28.2	$	7.5	$	69.8	$	64.4	$	21.4	$	815.1	$	881.6		(8.6	)		(2.6	)		(7.5	)

2008 First-Quarter Supplement

16

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
	12/31/08	9/30/08	6/30/08	3/31/08			12/31/07			9/30/07			6/30/07			3/31/07			6/30/08	6/30/07			9/30/08	9/30/07			12/31/08	12/31/07
Commercial casualty:
Written premiums				$	211		$	189		$	179		$	218		$	245			$	462			$	641			$	830
Earned premiums					190			204			205			209			209				418				623				827
Loss and loss expenses ratio					58.3	%		32.0	%		63.7	%		54.6	%		53.5	%			54.2	%			57.4	%			51.1	%
Less catastrophe loss ratio					—			—			—			—			—				—				—				—
Loss and loss expenses excluding catastrophe loss ratio					58.3	%		32.0	%		63.7	%		54.6	%		53.5	%			54.2	%			57.4	%			51.1	%
Commercial property:
Written premiums				$	124		$	116		$	120		$	125		$	138			$	263			$	383			$	499
Earned premiums					122			124			125			125			123				248				373				497
Loss and loss expenses ratio					75.5	%		32.9	%		61.5	%		45.8	%		53.6	%			49.7	%			53.7	%			48.5	%
Less catastrophe loss ratio					16.5			—			(1.4	)		3.2			6.9				5.0				2.9				2.2
Loss and loss expenses excluding catastrophe loss ratio					59.0	%		32.9	%		62.9	%		42.6	%		46.7	%			44.7	%			50.8	%			46.3	%
Commercial auto:
Written premiums				$	107		$	100		$	92		$	112		$	124			$	236			$	329			$	429
Earned premiums					101			110			108			110			113				223				331				440
Loss and loss expenses ratio					63.4	%		60.3	%		66.9	%		62.9	%		64.6	%			63.4	%			64.5	%			63.5	%
Less catastrophe loss ratio					(0.4	)		(0.2	)		0.4			—			(0.2	)			—				0.1				—
Loss and loss expenses excluding catastrophe loss ratio					63.8	%		60.5	%		66.5	%		62.9	%		64.8	%			63.4	%			64.4	%			63.5	%
Workers’ compensation:
Written premiums				$	114		$	88		$	84		$	92		$	113			$	206			$	289			$	378
Earned premiums					94			93			94			95			92				187				280				373
Loss and loss expenses ratio					64.8	%		113.6	%		82.0	%		66.8	%		76.5	%			71.5	%			75.0	%			84.6	%
Less catastrophe loss ratio					—			—			—			—			—				—				—				—
Loss and loss expenses excluding catastrophe loss ratio					64.8	%		113.6	%		82.0	%		66.8	%		76.5	%			71.5	%			75.0	%			84.6	%
Specialty package:
Written premiums				$	37		$	36		$	34		$	36		$	41			$	77			$	111			$	146
Earned premiums					35			36			36			37			36				73				109				146
Loss and loss expenses ratio					63.4	%		41.9	%		76.7	%		49.9	%		69.6	%			59.6	%			65.3	%			59.4	%
Less Catastrophe loss ratio					8.1			0.6			6.2			2.6			7.0				4.7				5.2				4.1
Loss and loss expenses excluding catastrophe loss ratio					55.3	%		41.3	%		70.5	%		47.3	%		62.6	%			54.9	%			60.1	%			55.3	%
Surety and executive risk:
Written premiums				$	25		$	26		$	28		$	23		$	25			$	48			$	76			$	102
Earned premiums					25			27			25			24			24				47				73				100
Loss and loss expenses ratio					45.9	%		55.7	%		36.5	%		49.3	%		24.0	%			36.7	%			36.7	%			41.8	%
Less catastrophe loss ratio					—			—			—			—			—				—				—				—
Loss and loss expenses excluding catastrophe loss ratio					45.9	%		55.7	%		36.5	%		49.3	%		24.0	%			36.7	%			36.7	%			41.8	%
Machinery and equipment:
Written premiums				$	7		$	7		$	7		$	7		$	7			$	14			$	22			$	29
Earned premiums					7			7			7			7			7				14				21				28
Loss and loss expense ratio					53.3	%		27.8	%		34.7	%		20.4	%		28.2	%			24.3	%			27.8	%			27.8	%
Less catastrophe loss ratio					—			(0.8	)		1.3			—			(1.6	)			(0.8	)			(0.1	)			(0.3	)
Loss and loss expense excluding catastrophe loss ratio					53.3	%		28.6	%		33.4	%		20.4	%		29.8	%			25.1	%			27.9	%			28.1	%

* 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.

2008 First-Quarter Supplement

17

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
	12/31/08	9/30/08	6/30/08	3/31/08			12/31/07			9/30/07			6/30/07			3/31/07			6/30/08	6/30/07			9/30/08	9/30/07			12/31/08	12/31/07
Personal auto:
Written premiums				$	69		$	75		$	92		$	93		$	72			$	164			$	256			$	332
Earned premiums					83			83			85			86			88				174				259				342
Loss and loss expenses ratio					67.6	%		65.3	%		67.7	%		67.6	%		66.5	%			67.1	%			67.3	%			66.8	%
Less catastrophe loss ratio					1.7			(0.3	)		0.7			(0.3	)		(2.3	)			(1.3	)			(0.6	)			(0.6	)
Loss and loss expenses excluding catastrophe loss ratio					65.9	%		65.6	%		67.0	%		67.9	%		68.8	%			68.4	%			67.9	%			67.4	%
Homeowner:
Written premiums				$	60		$	66		$	77		$	80		$	61			$	141			$	218			$	284
Earned premiums					72			71			70			72			71				143				214				285
Loss and loss expenses ratio					91.4	%		36.6	%		82.7	%		66.9	%		50.0	%			58.5	%			66.5	%			59.0	%
Less catastrophe loss ratio					25.2			(2.3	)		15.6			8.3			(7.5	)			0.4				5.4				3.5
Loss and loss expenses excluding catastrophe loss ratio					66.2	%		38.9	%		67.1	%		58.6	%		57.5	%			58.1	%			61.1	%			55.5	%
Other personal:
Written premiums				$	21		$	21		$	23		$	24		$	20			$	44			$	67			$	88
Earned premiums					22			22			22			22			22				43				65				87
Loss and loss expenses ratio					62.2	%		24.1	%		57.9	%		62.8	%		43.4	%			53.1	%			54.7	%			47.0	%
Less Catastrophe loss ratio					4.1			0.6			3.7			3.5			(0.1	)			1.3				2.0				1.7
Loss and loss expenses excluding catastrophe loss ratio					58.1	%		23.5	%		54.2	%		59.3	%		43.5	%			51.8	%			52.7	%			45.3	%

* 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.

2008 First-Quarter Supplement

 18

Cincinnati Insurance Group

Quarterly Detailed Loss Analysis

(Dollars in millions)							Three months ended												Six months ended				Nine months ended				Twelve months ended
	12/31/08	9/30/08	6/30/08	3/31/08			12/31/07			9/30/07			6/30/07			3/31/07			6/30/08	6/30/07			9/30/08	9/30/07			12/31/08	12/31/07
All Lines
Loss and loss expenses:
Loss and loss expenses — current AY				$	467		$	515		$	558		$	484		$	472			$	956			$	1,515			$	2,029
Loss and loss expenses — current AY					(9	)		(118	)		(47	)		(40	)		(17	)			(58	)			(106	)			(223	)
Catastrophes — current AY					47			(1	)		15			15			16				31				48				46
Catastrophes — prior AY’s					(4	)		(1	)		(2	)		(4	)		(13	)			(16	)			(19	)			(19	)
Total				$	501		$	395		$	524		$	455		$	458			$	913			$	1,438			$	1,833
Ratio to Earned Premiums
Loss and loss expenses :
Loss and loss expenses — current AY					62.2	%		66.3	%		71.9	%		61.6	%		60.2	%			60.9	%			64.5	%			64.9	%
Loss and loss expenses — current AY					(1.3	)		(15.2	)		(6.2	)		(5.1	)		(2.3	)			(3.7	)			(4.5	)			(7.1	)
Catastrophes — current AY					6.2			(0.1	)		2.0			1.9			2.1				2.0				2.0				1.4
Catastrophes — prior AY’s					(0.5	)		(0.1	)		(0.3	)		(0.5	)		(1.7	)			(1.0	)			(0.8	)			(0.6	)
Total					66.6	%		50.9	%		67.4	%		57.9	%		58.3	%			58.2	%			61.2	%			58.6	%
Commercial Lines
Loss and loss expenses:
Loss and loss expenses — current AY				$	354		$	412		$	433		$	370		$	356			$	727			$	1,159			$	1,571
Loss and loss expenses — current AY					(11	)		(102	)		(38	)		(40	)		(13	)			(53	)			(91	)			(193	)
Catastrophes — current AY					25			—			5			8			12				21				27				26
Catastrophes — prior AY’s					(3	)		—			(4	)		(3	)		(2	)			(5	)			(9	)			(9	)
Total				$	365		$	310		$	396		$	335		$	354			$	690			$	1,086			$	1,395
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses — current AY					61.6	%		68.5	%		72.2	%		61.0	%		59.0	%			60.0	%			64.0	%			65.2	%
Loss and loss expenses — current AY					(1.9	)		(17.0	)		(6.4	)		(6.6	)		(2.1	)			(4.3	)			(5.0	)			(8.0	)
Catastrophes — current AY					4.5			0.0			0.9			1.4			2.2				1.8				1.6				1.1
Catastrophes — prior AY’s					(0.6	)		(0.0	)		(0.8	)		(0.5	)		(0.4	)			(0.4	)			(0.5	)			(0.4	)
Total					63.6	%		51.4	%		66.0	%		55.3	%		58.7	%			57.1	%			60.1	%			57.9	%
Personal Lines
Loss and loss expenses:
Loss and loss expenses — current AY				$	113		$	103		$	125		$	114		$	116			$	229			$	356			$	458
Loss and loss expenses — current AY					2			(16	)		(9	)		—			(5	)			(5	)			(15	)			(30	)
Catastrophes — current AY					22			(1	)		10			7			4				10				21				20
Catastrophes — prior AY’s					(1	)		(1	)		2			(1	)		(11	)			(11	)			(10	)			(10	)
Total				$	136		$	85		$	128		$	120		$	104			$	223			$	352			$	438
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses — current AY					64.1	%		58.5	%		70.8	%		63.3	%		64.3	%			63.8	%			66.1	%			64.2	%
Loss and loss expenses — current AY					1.0			(8.9	)		(5.3	)		(0.1	)		(2.9	)			(1.5	)			(2.8	)			(4.2	)
Catastrophes — current AY					11.9			(0.7	)		5.9			3.8			2.0				2.9				3.9				2.7
Catastrophes — prior AY’s					(0.3	)		(0.3	)		1.1			(0.3	)		(6.1	)			(3.2	)			(1.8	)			(1.4	)
Total					76.7	%		48.6	%		72.5	%		66.7	%		57.3	%			62.0	%			65.4	%			61.3	%

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Cincinnati Insurance Group

Quarterly Property Casualty Data — Consolidated

(Dollars in millions)							Three months ended												Six months ended				Nine months ended				Twelve months ended
	12/31/08	9/30/08	6/30/08	3/31/08			12/31/07			9/30/07			6/30/07			3/31/07			6/30/08	6/30/07			9/30/08	9/30/07			12/31/08	12/31/07
Premiums
Adjusted written premiums (statutory)				$	772		$	749		$	779		$	808		$	811			$	1,619			$	2,398			$	3,149
Written premium adjustment - statutory only					3			(25	)		(43	)		2			35				37				(6	)			(32	)
Reported written premiums (statutory)*				$	775		$	724		$	736		$	810		$	846			$	1,656			$	2,392			$	3,117
Unearned premiums change					(24	)		53			41			(23	)		(61	)			(85	)			(44	)			8
Earned premiums				$	751		$	777		$	777		$	787		$	785			$	1,571			$	2,348			$	3,125
Statutory combined ratio
Statutory combined ratio					97.2	%		87.8	%		98.7	%		87.7	%		87.7	%			87.7	%			91.3	%			90.3	%
Less catastrophe losses					5.7			(0.3	)		1.7			1.4			0.4				0.9				1.2				0.8
Statutory combined ratio excluding catastrophe losses					91.5	%		88.1	%		97.0	%		86.3	%		87.3	%			86.8	%			90.1	%			89.5	%
Commission expense ratio					17.7	%		23.1	%		18.1	%		18.1	%		18.0	%			18.0	%			18.0	%			19.2	%
Other expense ratio					12.9			13.9			13.2			11.7			11.4				11.6				12.1				12.5
Statutory expense ratio					30.6	%		37.0	%		31.3	%		29.8	%		29.4	%			29.6	%			30.1	%			31.7	%
GAAP combined ratio
GAAP combined ratio					98.6	%		85.6	%		97.3	%		88.6	%		89.6	%			89.1	%			91.8	%			90.3	%

*	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.

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Cincinnati Insurance Group
Quarterly Property Casualty Data — Commercial Lines

	Three months ended																		Six months ended				Nine months ended				Twelve months ended
(Dollars in millions)	12/31/08	9/30/08	6/30/08	3/31/08			12/31/07			9/30/07			6/30/07			3/31/07			6/30/08	6/30/07			9/30/08	9/30/07			12/31/08	12/31/07
Premiums
Adjusted written premiums (statutory)				$	622		$	586		$	587		$	611		$	658			$	1,269			$	1,857			$	2,444
Written premium adjustment — statutory only					3			(24	)		(43	)		2			35				37				(6	)			(31	)
Reported written premiums (statutory)*				$	625		$	562		$	544		$	613		$	693			$	1,306			$	1,851			$	2,413
Unearned premiums change					(51	)		39			56			(6	)		(89	)			(96	)			(41	)			(2	)
Earned premiums				$	574		$	601		$	600		$	607		$	604			$	1,210			$	1,810			$	2,411
Statutory combined ratio
Statutory combined ratio					93.3	%		89.7	%		97.3	%		84.4	%		86.5	%			85.4	%			89.2	%			89.2	%
Less catastrophe losses					3.9			—			0.2			0.8			1.8				1.3				0.9				0.6
Statutory combined ratio excluding catastrophe losses					89.4	%		89.7	%		97.1	%		83.6	%		84.7	%			84.1	%			88.3	%			88.6	%
GAAP combined ratio
GAAP combined ratio					95.0	%		87.3	%		95.4	%		85.2	%		88.9	%			87.0	%			89.8	%			89.2	%

*	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.

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Cincinnati Insurance Group
Quarterly Property Casualty Data — Personal Lines

	Three months ended																		Six months ended				Nine months ended				Twelve months ended
(Dollars in millions)	12/31/08	9/30/08	6/30/08	3/31/08			12/31/07			9/30/07			6/30/07			3/31/07			6/30/08	6/30/07			9/30/08	9/30/07			12/31/08	12/31/07
Adjusted written premiums (statutory)				$	150		$	163		$	192		$	197		$	153			$	350			$	541			$	705
Written premium adjustment — statutory only					—			(1	)		—			—			—				—				—				(1	)
Reported written premiums (statutory)*				$	150		$	162		$	192		$	197		$	153			$	350			$	541			$	704
Unearned premiums change					27			14			(15	)		(17	)		28				11				(3	)			10
Earned premiums				$	177		$	176		$	177		$	180		$	181			$	361			$	538			$	714
Statutory combined ratio
Statutory combined ratio					110.8	%		—	%		103.6	%		98.6	%		93.5	%			95.8	%			98.3	%			94.1	%
Less catastrophe losses					11.6			(1.0	)		7.0			3.5			(4.1	)			(0.3	)			2.1				1.3
Statutory combined ratio excluding catastrophe losses					99.2	%		1.0	%		96.6	%		95.1	%		97.6	%			96.1	%			96.2	%			92.8	%
GAAP combined ratio
GAAP combined ratio					110.1	%		79.7	%		103.8	%		99.9	%		92.0	%			96.0	%			98.6	%			93.9	%

*	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.

2008 First-Quarter Supplement

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The Cincinnati Life Insurance Company
GAAP Statements of Income

	For the Three Months Ended March 31,
	2008			2007			Change			% Change
Revenues:
Premiums earned:
Life	$	40,068,179		$	38,946,474		$	1,121,705			2.88
Accident health		1,868,167			1,758,851			109,316			6.22
Premiums ceded		(12,489,397	)		(10,286,342	)		(2,203,055	)		21.42
Total premiums earned		29,446,949			30,418,983			(972,034	)		(3.20	)
Investment income		29,080,394			28,312,584			767,810			2.71
Realized investment gains and losses		(9,802,238	)		8,144,413			(17,946,651	)		(220.36	)
Other income		742,390			1,365,571			(623,181	)		(45.64	)
Total revenues	$	49,467,495		$	68,241,551		$	(18,774,056	)		(27.51	)
Benefits & expenses:
Losses & policy benefits	$	39,885,436		$	36,890,212		$	2,995,224			8.12
Reinsurance recoveries		(4,358,148	)		(9,652,925	)		5,294,777			(54.85	)
Commissions		6,282,112			8,939,275			(2,657,163	)		(29.72	)
Other operating expenses		6,288,651			7,485,616			(1,196,965	)		(15.99	)
Interest expense		—			—			—			—
Taxes, licenses & fees		1,012,324			946,862			65,462			6.91
Incr deferred acq expense		(2,036,729	)		(3,936,437	)		1,899,708			(48.26	)
Total expenses	$	47,073,646		$	40,672,603		$	6,401,043			15.74
Income before income taxes	$	2,393,849		$	27,568,948		$	(25,175,099	)		(91.32	)
Provision for income taxes:
Current	$	7,672,506		$	2,700,754		$	4,971,752			184.09
Current capital gains/losses		(3,410,783	)		2,870,544			(6,281,327	)		(218.82	)
Deferred		(3,583,310	)		4,059,429			(7,642,739	)		(188.27	)
Total income taxes	$	678,413		$	9,630,727		$	(8,952,314	)		(92.96	)
Net income	$	1,715,436		$	17,938,221		$	(16,222,785	)		(90.44	)

2008 First-Quarter Supplement

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The Cincinnati Life Insurance Company
Statutory Statements of Income

	For the Three Months Ended March 31,
	2008			2007			% Change
Net premiums written	$	41,996,272		$	40,441,018			3.85
Net investment income		29,080,732			28,317,576			2.69
Amortization of interest maintenance reserve		(269,001	)		18,286			(1,571.08	)
Commissions and expense allowances on reinsurance ceded		1,941,492			1,962,089			(1.05	)
Income from fees associated with Separate Accounts		742,390			1,365,571			(45.64	)
Total revenues	$	73,491,885		$	72,104,540			1.92
Death benefits and matured endowments	$	10,682,392		$	7,025,780			52.05
Annuity benefits		7,389,683			8,446,244			(12.51	)
Disability benefits and benefits under accident and health contracts		575,866			392,588			46.68
Surrender benefits and group conversions		5,986,229			4,872,348			22.86
Interest and adjustments on deposit-type contract funds		2,749,630			2,701,644			1.78
Increase in aggregate reserves for life and accident and health contracts		22,344,475			27,127,730			(17.63	)
Payments on supplementary contracts with life contingencies		84,382			90,522			(6.78	)
Total benefit expenses	$	49,812,657		$	50,656,856			(1.67	)
Commissions	$	8,147,979		$	8,834,275			(7.77	)
General insurance expenses and taxes		9,509,358			9,826,285			(3.23	)
Increase in loading on deferred and uncollected premiums		(250,714	)		(1,378,574	)		81.81
Net transfers to or (from) Separate Accounts		—			—			—
Other deductions		63			64			(1.56	)
Total operating expenses	$	17,406,686		$	17,282,050			0.72
Federal and Foreign Income Taxes Incurred		7,659,148			2,611,204			193.32
Net gain from operations before realized capital gains or (losses)	$	(1,386,606	)	$	1,554,430			(189.20	)
Net realized gains or (losses) net of capital gains tax		(6,566,723	)		5,811,552			(212.99	)
Net Income (loss) (Statutory)	$	(7,953,329	)	$	7,365,982			(207.97	)

* 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.

2008 First-Quarter Supplement

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The Cincinnati Life Insurance Company
Expenses as a Percentage of Premium

	Three months ended																		Six months ended				Nine months ended				Twelve months ended
(Dollars in millions)	12/31/08	09/30/08	06/30/08	03/31/08			12/31/07			09/30/07			06/30/07			03/31/07			06/30/08	06/30/07			09/30/08	09/30/07			12/31/08	12/31/07
Gross Written Premiums				$	54		$	55		$	49		$	54		$	53			$	107			$	156			$	211
Bank Owned Life Insurance (BOLI) Adjustment					—			—			—			—			—				—				—				—
Adjusted Gross Written Premiums				$	54		$	55		$	49		$	54		$	53			$	107			$	156			$	211
Insurance Expense				$	8		$	8		$	8		$	9		$	9			$	18			$	26			$	34
Expense Ratio					15.0	%		14.5	%		16.3	%		16.7	%		17.7	%			16.8	%			16.7	%			16.1	%
Expense Ratio based on Adjusted Gross Written Premium					15.0	%		14.5	%		16.3	%		16.7	%		17.7	%			16.8	%			16.7	%			16.1	%

* 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.

2008 First-Quarter Supplement

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