Cincinnati Financial (CINF) 8-K Cincinnati Financial Reports Second-quarter 2008 Profit

Exhibit 99.2

Cincinnati Financial Corporation
Supplemental Financial Data
June 30, 2008
Second 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	BBB+
The Cincinnati Insurance Companies
Insurer Financial Strength
Property Casualty Group
Standard Market Subsidiaries:	A++	—	Aa3	A+
The Cincinnati Insurance Company	A++	AA-	Aa3	A+
The Cincinnati Indemnity Company	A++	AA-	Aa3	A+
The Cincinnati Casualty Company	A++	AA-	Aa3	A+
Excess and Surplus Lines Subsidiary:
The Cincinnati Specialty Underwriters Insurance Company	A	—	—	—
The Cincinnati Life Insurance Company	A+	AA-	—	A+

Ratings are as of August 3, 2008, under negative review or outlook and always 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
Second Quarter 2008

	Page
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3
Consolidated (Includes Cincinnati Specialty Underwriters Insurance Company (CSU))
Quick Reference	4
Consolidated Statements of Income	5
CFC and Subsidiary Consolidation — Six Months Ended June 30, 2008	6
CFC and Subsidiary Consolidation — Three Months Ended June 30, 2008	7
Consolidated Balance Sheets	8
Quarterly Net Income Reconciliation	9
Top Holdings — Common Stocks	10
CFC Subsidiaries — Selected Balance Sheet Data	11
Property Casualty Insurance Group Operations (Excludes CSU)
GAAP Statements of Income	12
Statutory Statements of Income	13
Statutory Quarterly Analysis — All Lines	14
Statutory Quarterly Analysis — Commercial Lines	15
Statutory Quarterly Analysis — Personal Lines	16
Direct Written Premiums by Line of Business and State	17
Quarterly Property Casualty Data — Commercial Lines of Business	18
Quarterly Property Casualty Data — Personal Lines of Business	19
Quarterly Detailed Loss Analysis	20
Reconciliation Data (Excludes CSU)
Quarterly Property Casualty Data — All Lines	21
Quarterly Property Casualty Data — Commercial Lines	22
Quarterly Property Casualty Data — Personal Lines	23
Life Insurance Operations
GAAP Statements of Income	24
Statutory Statements of Income	25
Expenses as a Percentage of Premium	26

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.

2008 Second-Quarter Supplement

3

Cincinnati Financial Corporation
Quick Reference — Second Quarter 2008
(all data shown is for the three months ended or as of June 30, 2008)

(Based on reported data — see Pages 21-23 for adjusted data)

				Year over
				year
	6/30/2008			change%
Revenues:
Commercial lines net written premiums	$	597			(2.7)
Personal lines net written premiums		191			(3.0	)
Excess & Surplus lines net written premiums		2			nm
Property casualty net written premiums		790			(2.5	)
Commercial lines net earned premiums		586			(3.3	)
Personal lines net earned premiums		174			(3.3	)
Excess & Surplus lines net earned premiums		1			nm
Property casualty net earned premiums		761			(3.3	)
Life and accident and health net earned premiums		33			(4.7	)
Investment income		130			(13.4	)
Realized gains on investments		(11	)		(103.8	)
Other income		4			(35.1	)
Total revenues		917			(27.8	)
Income:
Operating income	$	69			(57.6)
Net realized investment gains and losses		(6	)		(103.4	)
Net income (loss)		63			(82.0	)
Per share (diluted):
Operating income	$	0.42			(55.3	)
Net realized investment gains and losses		(0.04	)		(103.7	)
Net income (loss)		0.38			(81.2	)
Book value		28.99			(10.8	)
Weighted average shares — diluted		165,044,463			(4.8	)
Benefits and expenses:
Commercial lines loss and loss expenses	$	408			21.9
Personal lines loss and loss expenses		149			23.7
Excess & Surplus lines loss and loss expenses		1			nm
Property casualty loss and loss expenses		558			22.5
Life and accident and health losses and policy benefits		38			11.3
Operating expenses		245			(5.7	)
Interest expenses		13			(2.6	)
Total expenses		853			11.8
Net loss before income taxes		64			87.3
Total income tax benefit		1			(99.2	)
Effective tax rate					2.0
Ratios:
Commercial lines GAAP combined ratio		99.9	%
Personal lines GAAP combined ratio		115.3
Excess & Surplus lines GAAP combined ratio		236.9
Property casualty GAAP combined ratio		103.5
Commercial lines STAT combined ratio		97.5	%
Personal lines STAT combined ratio		114.3
Excess & Surplus lines STAT combined ratio		186.8
Property casualty STAT combined ratio		101.5
Return on equity based upon net income		5.0	%
Return on equity based upon operating income		5.5
Balance Sheet:
Fixed maturity investments	$	5,926
Equity securities		4,453
Short-term investments		0
Other invested assets		81
Total invested assets	$	10,460
Property casualty and life loss and loss expense reserves	$	4,136
Total debt		860
Shareholders’ equity		4,707

2008 Second-Quarter Supplement

4

Cincinnati Financial Corporation
Consolidated Statements of Income

	For the Three Months Ended June 30,												For the Six Months Ended June 30,
	2008			2007			Change			% Change			2008			2007			Change			% Change
Revenues:
Premiums earned:
Property Casualty	$	802,677,016		$	829,606,653		$	(26,929,637	)		(3.25	)	$	1,595,051,448		$	1,656,897,309		$	(61,845,861	)		(3.73	)
Life		44,641,032			43,321,722			1,319,310			3.05			84,709,211			82,268,196			2,441,015			2.97
Accident health		1,684,116			1,605,440			78,676			4.90			3,552,283			3,364,290			187,993			5.59
Premiums ceded		(54,586,272	)		(52,688,519	)		(1,897,753	)		3.60			(108,681,459	)		(106,037,437	)		(2,644,022	)		2.49
Total premiums earned		794,415,892			821,845,296			(27,429,404	)		(3.34	)		1,574,631,483			1,636,492,358			(61,860,875	)		(3.78	)
Investment income		129,822,781			149,930,928			(20,108,147	)		(13.41	)		282,056,738			298,325,295			(16,268,557	)		(5.45	)
Realized gain on investments		(11,180,282	)		292,255,058			(303,435,340	)		(103.83	)		(243,716,600	)		354,433,292			(598,149,892	)		(168.76	)
Other income		3,804,335			5,864,902			(2,060,567	)		(35.13	)		7,585,979			11,553,775			(3,967,796	)		(34.34	)
Total revenues	$	916,862,726		$	1,269,896,184		$	(353,033,458	)		(27.80	)	$	1,620,557,600		$	2,300,804,720		$	(680,247,120	)		(29.57	)
Benefits & expenses:
Losses & policy benefits	$	648,035,259		$	548,496,251		$	99,539,008			18.15		$	1,210,970,083		$	1,063,528,068		$	147,442,015			13.86
Reinsurance recoveries		(53,139,559	)		(58,815,190	)		5,675,631			(9.65	)		(80,276,896	)		(89,624,119	)		9,347,223			(10.43	)
Commissions		147,567,688			159,707,197			(12,139,509	)		(7.60	)		297,582,640			329,859,970			(32,277,330	)		(9.79	)
Other operating expenses		93,477,328			88,100,916			5,376,412			6.10			184,197,352			176,304,874			7,892,478			4.48
Interest expense		12,554,775			12,883,634			(328,859	)		(2.55	)		25,242,247			25,976,556			(734,309	)		(2.83	)
Taxes, licenses & fees		15,388,880			18,953,279			(3,564,399	)		(18.81	)		36,149,850			38,896,211			(2,746,361	)		(7.06	)
Incr deferred acq expense		(11,447,915	)		(7,039,022	)		(4,408,893	)		62.64			(17,165,937	)		(22,693,713	)		5,527,776			(24.36	)
Total expenses	$	852,436,456		$	762,287,065		$	90,149,391			11.83		$	1,656,699,339		$	1,522,247,847		$	134,451,492			8.83
Income (loss) before income taxes	$	64,426,270		$	507,609,119		$	(443,182,849	)		(87.31	)	$	(36,141,739	)	$	778,556,873		$	(814,698,612	)		(104.64	)
Provision for income taxes:
Current operating income	$	(11,071,611	)	$	50,417,641		$	(61,489,252	)		(121.96	)	$	92,351,049		$	105,943,632		$	(13,592,583	)		(12.83	)
Realized investments gains and losses		(4,803,863	)		105,361,190			(110,165,053	)		(104.56	)		(86,478,842	)		126,420,231			(212,899,073	)		(168.41	)
Deferred		17,189,684			1,099,970			16,089,714			1,462.74			(62,848,731	)		1,334,514			(64,183,245	)		(4,809.48	)
Total income taxes	$	1,314,210		$	156,878,801		$	(155,564,591	)		(99.16	)	$	(56,976,524	)	$	233,698,377		$	(290,674,901	)		(124.38	)
Net income (loss)	$	63,112,060		$	350,730,318		$	(287,618,258	)		(82.01	)	$	20,834,785		$	544,858,496		$	(524,023,711	)		(96.18	)
Comprehensive net income	$	(653,228,105	)	$	170,360,310		$	(823,588,415	)		(483.44	)	$	(967,413,310	)	$	178,427,999		$	(1,145,841,309	)		(642.19	)
Operating income	$	69,488,479		$	163,836,452		$	(94,347,973	)		(57.59	)	$	178,072,543		$	316,845,435		$	(138,772,892	)		(43.80	)
Net realized investments gains and losses	$	(6,376,419	)	$	186,893,871		$	(193,270,290	)		(103.41	)	$	157,237,758		$	228,013,061		$	(70,775,303	)		(31.04	)
Net income per share:
Operating income	$	0.42		$	0.95		$	(0.53	)		(55.79	)	$	1.09		$	1.84		$	(0.75	)		(40.76	)
Net realized investments gains and losses		(0.04	)		1.09			(1.13	)		(103.67	)		(0.96	)		1.32			(2.28	)		(172.73	)
Net income (loss) per share (basic)	$	0.38		$	2.04		$	(1.66	)		(81.37	)	$	0.13		$	3.16		$	(3.03	)		(95.89	)
Operating income	$	0.42		$	0.94		$	(0.52	)		(55.32	)	$	1.08		$	1.82		$	(0.74	)		(40.66	)
Net realized investments gains and losses		(0.04	)		1.08			(1.12	)		(103.70	)		(0.95	)		1.31			(2.26	)		(172.52	)
Net income (loss) per share (diluted)	$	0.38		$	2.02		$	(1.64	)		(81.19	)	$	0.13		$	3.13		$	(3.00	)		(95.85	)
Dividends per share:
Paid	$	0.390		$	0.355		$	0.035			9.86		$	0.75		$	0.69		$	0.06			7.97
Declared	$	0.390		$	0.355		$	0.035			9.86		$	0.78		$	0.71		$	0.07			9.86
Number of shares:
Weighted avg — basic		164,530,659			171,712,547			(7,181,888	)		(4.18	)		163,921,532			172,178,180			(8,256,648	)		(4.80	)
Weighted avg — diluted		165,044,463			173,423,572			(8,379,109	)		(4.83	)		164,601,462			173,871,612			(9,270,150	)		(5.33	)

2008 Second-Quarter Supplement

5

Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Six Months Ended June 30, 2008

	Total			CFC			CONSOL P&C			CLIC			CFC-I			CINFIN			C-SUPR			ELIM
Revenues:
Premiums earned:
Property Casualty	$	1,595,051,448		$	—		$	1,595,636,551		$	—		$	—		$	—		$	—		$	(585,103	)
Life		84,709,211			—			—			84,709,211			—			—			—			—
Accident health		3,552,283			—			—			3,552,283			—			—			—			—
Premiums ceded		(108,681,459	)		—			(83,574,393	)		(25,107,066	)		—			—			—			—
Total earned premium		1,574,631,483			—			1,512,062,158			63,154,428			—			—			—			(585,103	)
Investment income		282,056,738			40,887,032			183,103,291			58,315,272			215,763			149,609			28,852			(643,081	)
Realized gain on investments		(243,716,600	)		(68,959,079	)		(152,485,610	)		(21,786,240	)		202,382			(558,278	)		—			(129,775	)
Other income		7,585,979			5,762,982			1,821,411			1,366,892			4,245,151			1,178,861			187,432			(6,976,750	)
Total revenues	$	1,620,557,600		$	(22,309,065	)	$	1,544,501,250		$	101,050,352		$	4,663,296		$	770,192		$	216,284		$	(8,334,709	)
Benefits & expenses:
Losses & policy benefits	$	1,210,970,083		$	—		$	1,119,143,278		$	94,218,286		$	—		$	—		$	—		$	(2,391,481	)
Reinsurance recoveries		(80,276,896	)		—			(60,290,768	)		(20,174,446	)		—			—			—			188,318
Commissions		297,582,640			55,000			285,186,517			12,528,555			—			—			—			(187,432	)
Other operating expenses		184,197,352			11,931,081			159,613,246			14,868,551			2,243,183			343,587			1,026,932			(5,829,228	)
Interest expense		25,242,247			24,095,848			238,147			—			1,402,108			—			—			(493,856	)
Taxes, licenses & fees		36,149,850			606,108			33,430,043			2,050,023			18,630			36,988			8,058			—
Incr deferred acq expenses		(17,165,937	)		—			(9,007,541	)		(8,158,396	)		—			—			—			—
Total expenses	$	1,656,699,339		$	36,688,037		$	1,528,312,922		$	95,332,573		$	3,663,921		$	380,575		$	1,034,990		$	(8,713,679	)
Income before income taxes	$	(36,141,739	)	$	(58,997,102	)	$	16,188,328		$	5,717,779		$	999,375		$	389,617		$	(818,706	)	$	378,970
Provision for income taxes:
Current operating income	$	92,351,049		$	6,603,511		$	74,122,681		$	11,184,890		$	323,767		$	388,346		$	(272,146	)	$	—
Capital gains/losses		(86,478,842	)		(24,535,678	)		(54,213,417	)		(7,605,184	)		70,834			(195,397	)		—			—
Deferred		(62,848,731	)		(14,267,966	)		(46,774,038	)		(1,862,217	)		25,558			(90,922	)		(11,786	)		132,640
Total income tax	$	(56,976,524	)	$	(32,200,133	)	$	(26,864,774	)	$	1,717,489		$	420,159		$	102,027		$	(283,932	)	$	132,640
Net income — current year	$	20,834,785		$	(26,796,969	)	$	43,053,102		$	4,000,290		$	579,216		$	287,590		$	(534,774	)	$	246,330
Net income — prior year	$	544,858,496		$	71,435,878		$	407,628,334		$	55,584,749		$	1,161,761		$	600,870		$	—		$	8,446,904
Change in net income		-96.2	%		-137.5	%		-89.4	%		-92.8	%		-50.1	%		-52.1	%		N/A

2008 Second-Quarter Supplement

6

Cincinnati Financial Corporation and Subsidiaries
Consolidated Statements of Income for the Three Months Ended June 30, 2008

	Total			CFC			CONSOL P&C			CLIC			CFC-I			CINFIN			C-SUPR			ELIM
Revenues:
Premiums earned:
Property Casualty	$	802,677,016		$	—		$	802,909,804		$	—		$	—		$	—		$	—		$	(232,788	)
Life		44,641,032			—			—			44,641,032			—			—			—			—
Accident health		1,684,116			—			—			1,684,116			—			—			—			—
Premiums ceded		(54,586,272	)		—			(41,968,603	)		(12,617,669	)		—			—			—			—
Total earned premium		794,415,892			—			760,941,201			33,707,479			—			—			—			(232,788	)
Investment income		129,822,781			15,353,389			85,098,156			29,234,878			95,281			75,652			10,773			(45,348	)
Realized gain on investments		(11,180,282	)		11,936,467			(10,773,752	)		(11,984,002	)		101,191			(227,606	)		—			(232,580	)
Other income		3,804,335			3,365,695			1,008,495			624,502			2,033,307			577,644			136,806			(3,942,114	)
Total revenues	$	916,862,726		$	30,655,551		$	836,274,100		$	51,582,857		$	2,229,779		$	425,690		$	147,579		$	(4,452,830	)
Benefits & expenses:
Losses & policy benefits	$	648,035,259		$	—		$	595,544,440		$	54,332,850		$	—		$	—		$	—		$	(1,842,031	)
Reinsurance recoveries		(53,139,559	)		—			(37,511,579	)		(15,816,298	)		—			—			—			188,318
Commissions		147,567,688			27,500			141,481,177			6,246,443			—			—			—			(187,432	)
Other operating expenses		93,477,328			6,193,276			79,374,916			8,579,900			1,026,838			206,714			611,849			(2,516,165	)
Interest expense		12,554,775			11,852,805			149,897			—			701,054			—			—			(148,981	)
Taxes, licenses & fees		15,388,880			303,054			13,951,736			1,037,699			10,433			85,738			220			—
Incr deferred acq expenses		(11,447,915	)		—			(5,326,248	)		(6,121,667	)		—			—			—			—
Total expenses	$	852,436,456		$	18,376,635		$	787,664,339		$	48,258,927		$	1,738,325		$	292,452		$	612,069		$	(4,506,291	)
Income before income taxes	$	64,426,270		$	12,278,916		$	48,609,761		$	3,323,930		$	491,454		$	133,238		$	(464,490	)	$	53,461
Provision for income taxes:
Current operating income	$	(11,071,611	)	$	(18,883,652	)	$	4,229,640		$	3,512,384		$	143,180		$	86,003		$	(159,166	)	$	—
Capital gains/losses		(4,803,863	)		3,832,763			(4,397,980	)		(4,194,401	)		35,417			(79,662	)		—			—
Deferred		17,189,684			14,064,830			1,350,813			1,721,093			13,548			22,774			(2,085	)		18,711
Total income tax	$	1,314,210		$	(986,059	)	$	1,182,473		$	1,039,076		$	192,145		$	29,115		$	(161,251	)	$	18,711
Net income — current year	$	63,112,060		$	13,264,975		$	47,427,288		$	2,284,854		$	299,309		$	104,123		$	(303,239	)	$	34,750
Net income — prior year	$	350,730,323		$	52,304,536		$	253,698,723		$	37,646,528		$	545,486		$	339,871		$	—		$	6,195,179
Change in net income		-82.0	%		-74.6	%		-81.3	%		-93.9	%		-45.1	%		-69.4	%		N/A

2008 Second-Quarter Supplement

7

Cincinnati Financial Corporation
Consolidated Balance Sheets

	June 30,			December 31,
(Dollars in millions except per share data)	2008			2007
	(unaudited)
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2008—$5,994; 2007—$5,783)	$	5,926		$	5,848
(includes securities pledged to creditors: 2008—$520; 2007—$745)
Equity securities, at fair value (cost: 2008—$2,565; 2007—$2,621)		4,453			6,249
Short-term investments, at fair value (amortized cost: 2008—$0; 2007—$101)		—			101
Other invested assets		81			63
Total investments		10,460			12,261
Cash and cash equivalents		333			226
Securities lending collateral invested		510			760
Investment income receivable		109			124
Finance receivable		80			92
Premiums receivable		1,150			1,107
Reinsurance receivable		777			754
Prepaid reinsurance premiums		12			13
Deferred policy acquisition costs		487			461
Land, building and equipment, net, for company use (accumulated depreciation: 2008—$285; 2007—$276)		234			239
Other assets		126			72
Separate accounts		533			528
Total assets	$	14,811		$	16,637
Liabilities
Insurance reserves
Losses and loss expense	$	4,136		$	3,967
Life policy reserves		1,523			1,478
Unearned premiums		1,609			1,564
Securities lending payable		529			760
Other liabilities		534			574
Deferred income tax		380			977
Notes payable		69			69
6.125% senior debenture due 2034		371			371
6.9% senior debenture due 2028		28			28
6.92% senior debenture due 2028		392			392
Separate accounts		533			528
Total liabilities		10,104			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		1,059			1,049
Retained Earnings		3,298			3,404
Accumulated other comprehensive income		1,163			2,151
Treasury stock at cost (2008—34 million shares, 2007—30 million shares)		(1,206	)		(1,068	)
Total shareholders’ equity		4,707			5,929
Total liabilities and shareholders’ equity	$	14,811		$	16,637

2008 Second-Quarter Supplement

8

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)			$	63		$	(42	)	$	187	$	124		$	351		$	194		$	21		$	545			$	669			$	855
Net realized investment gains and losses				(6	)		(151	)		8		10			187			41			(157	)		228				238				245
Operating income				69			109			179		114			164			153			178			317				431				610
Less catastrophe losses				(74	)		(28	)		1		(9	)		(7	)		(2	)		(101	)		(9	)			(18	)			(17	)
Operating income before catastrophe losses			$	143		$	137		$	178	$	123		$	171		$	155		$	279		$	326			$	449			$	627
Diluted per share data
Net income (loss)			$	0.38		$	(0.26	)	$	1.11	$	0.72		$	2.02		$	1.11		$	0.13		$	3.13			$	3.86			$	4.97
Net realized investment gains and losses				(0.04	)		(0.92	)		0.04		0.06			1.08			0.23			(0.95	)		1.31				1.37				1.43
��
Operating income				0.42			0.66			1.07		0.66			0.94			0.88			1.08			1.82				2.49				3.54
Less catastrophe losses				(0.45	)		(0.17	)		0.01		(0.05	)		(0.04	)		(0.01	)		(0.62	)		(0.05	)			(0.10	)			(0.10	)
Operating income before catastrophe losses			$	0.87		$	0.83		$	1.06	$	0.71		$	0.98		$	0.89		$	1.70		$	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 Second-Quarter Supplement

9

Cincinnati Financial Corporation
Top Holdings – Common Stocks

	As of and for the six months ended June 30, 2008
			Fair		Percent of			Earned dividend
(Dollars in millions)	Cost		value		fair value			income
Fifth Third Bancorp	$	185	$	685		16.6	%	$	40
The Procter & Gamble Company		206		457		11.1			6
Exxon Mobil Corporation		42		368		8.8			4
U.S. Bancorp		270		292		7.1			9
PNC Financial Services Group, Inc.		62		269		6.5			6
Johnson & Johnson		220		260		6.3			3
AllianceBernstein Holding L.P.		113		214		5.2			7
Wyeth		62		212		5.1			2
Wells Fargo & Company		128		153		3.7			4
Piedmont Natural Gas Company, Inc.		64		148		3.6			3
Chevron Corporation		56		131		3.2			2
All other common stock holdings		789		942		22.8			23
Total	$	2,197	$	4,131		100.0	%	$	109

2008 Second-Quarter Supplement

10

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 Consolidated (including CSU)
Fixed maturities and equities (fair value)			$	7,841		$	8,628	$	8,940	$	9,586	$	9,850		$	9,837
Fixed maturities — pretax net unrealized gain (loss)				(33	)		39		58		23		(30	)		44
Equities — pretax net unrealized gain (loss)				1,227			1,831		2,077		2,657		2,917			3,017
Loss and loss expense reserves — STAT				3,534			3,448		3,398		3,461		3,374			3,373
Equity GAAP				4,011			4,498		4,784		5,282		5,404			5,272
Surplus — STAT				3,650			4,027		4,307		4,782		4,937			4,741
The Cincinnati Life Insurance Company
Fixed maturities and equities (fair value)			$	1,816		$	1,841	$	1,887	$	1,952	$	1,922		$	1,938
Fixed maturities — pretax net unrealized gain (loss)				(35	)		0		6		4		(4	)		20
Equities — pretax net unrealized gain (loss)				92			127		162		225		254			305
Equity — GAAP				617			661		685		724		730			739
Surplus — STAT				420			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 Consolidated (including CSU)
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
Equity GAAP		5,261		5,073		4,702			4,730		4,647		4,660		4,679		4,493
Surplus — STAT		4,723		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 Second-Quarter Supplement

11

Cincinnati Insurance Group
GAAP Statements of Income

	For the Three Months Ended June 30,												For the Six Months Ended June 30,
	2008			2007			Change			% Change			2008			2007			Change			% Change
Premiums earned:
Property casualty	$	802,321,014		$	829,657,092		$	(27,336,078	)		(3.29	)	$	1,594,958,201		$	1,657,229,337		$	(62,271,136	)		(3.76	)
Premiums ceded		(41,883,181	)		(43,136,003	)		1,252,822			(2.90	)		(83,408,661	)		(86,198,579	)		2,789,918			(3.24	)
Total premiums earned		760,437,833			786,521,089			(26,083,256	)		(3.32	)		1,511,549,540			1,571,030,758			(59,481,218	)		(3.79	)
Investment income		83,060,972			96,856,271			(13,795,299	)		(14.24	)		178,673,502			193,465,425			(14,791,923	)		(7.65	)
Realized gain on investments		(10,773,752	)		177,301,752			(188,075,504	)		(106.08	)		(152,167,078	)		207,210,519			(359,377,597	)		(173.44	)
Other income		1,008,495			2,063,476			(1,054,981	)		(51.13	)		1,821,411			3,651,137			(1,829,726	)		(50.11	)
Total revenues	$	833,733,548		$	1,062,742,588		$	(229,009,040	)		(21.55	)	$	1,539,877,375		$	1,975,357,839		$	(435,480,464	)		(22.05	)
Benefits & expenses:
Losses & policy benefits	$	594,819,242		$	503,831,386		$	90,987,856			18.06		$	1,118,243,328		$	982,523,609		$	135,719,719			13.81
Reinsurance recoveries		(37,489,579	)		(48,321,120	)		10,831,541			(22.42	)		(60,263,768	)		(69,477,125	)		9,213,357			(13.26	)
Commissions		140,952,401			150,586,086			(9,633,685	)		(6.40	)		284,453,834			311,799,584			(27,345,750	)		(8.77	)
Other operating expenses		78,690,634			77,338,890			1,351,744			1.75			158,164,838			154,842,623			3,322,215			2.15
Interest expense		149,897			—			149,897			—			238,147			—			238,147			—
Taxes, licenses & fees		13,946,604			17,676,507			(3,729,903	)		(21.10	)		33,410,942			36,332,300			(2,921,358	)		(8.04	)
Incr deferred acq expense		(4,587,997	)		(4,646,840	)		58,843			(1.27	)		(7,824,753	)		(16,365,094	)		8,540,341			(52.19	)
Total expenses	$	786,481,202		$	696,464,909		$	90,016,293			12.92		$	1,526,422,568		$	1,399,655,897		$	126,766,671			9.06
Income before income taxes	$	47,252,346		$	366,277,679		$	(319,025,333	)		(87.10	)	$	13,454,807		$	575,701,942		$	(562,247,135	)		(97.66	)
Provision for income taxes:
Current operating income	$	4,237,206		$	55,744,602		$	(51,507,396	)		(92.40	)	$	73,852,531		$	106,361,563		$	(32,509,032	)		(30.56	)
Current realized investments gains and losses		(4,397,980	)		62,790,613			(67,188,593	)		(107.00	)		(54,101,931	)		73,423,681			(127,525,612	)		(173.68	)
Deferred		1,218,845			(5,956,260	)		7,175,105			(120.46	)		(46,953,328	)		(11,711,636	)		(35,241,692	)		300.91
Total income taxes	$	1,058,071		$	112,578,955		$	(111,520,884	)		(99.06	)	$	(27,202,728	)	$	168,073,608		$	(195,276,336	)		(116.19	)
Net income (loss)	$	46,194,275		$	253,698,724		$	(207,504,449	)		(81.79	)	$	40,657,535		$	407,628,334		$	(366,970,799	)		(90.03	)

2008 Second-Quarter Supplement

12

Cincinnati Insurance Group
Statutory Statements of Income

	For the Three Months Ended June 30,											For the Six Months Ended June 30,
	2008			2007		Change			% Change			2008			2007		Change			% Change
Underwriting income
Net premiums written	$	787,500,370		$	810,172,700	$	(22,672,330	)		(2.80	)	$	1,562,220,309		$	1,655,972,450	$	(93,752,141	)		(5.66	)
Unearned premiums increase		27,062,537			23,651,614		3,410,923			14.42			50,670,768			84,941,693		(34,270,925	)		(40.35	)
Earned premiums		760,437,833			786,521,086		(26,083,253	)		(3.32	)		1,511,549,541			1,571,030,756		(59,481,215	)		(3.79	)
Losses incurred	$	478,883,494		$	363,866,807	$	115,016,687			31.61		$	896,330,977		$	734,619,843	$	161,711,134			22.01
Allocated loss expenses incurred		32,446,387			49,710,496		(17,264,109	)		(34.73	)		69,628,660			88,786,803		(19,158,143	)		(21.58	)
Unallocated loss expenses incurred		45,999,782			41,932,964		4,066,818			9.70			92,019,923			89,639,838		2,380,085			2.66
Other underwriting expenses incurred		224,775,617			239,633,680		(14,858,063	)		(6.20	)		456,623,261			484,376,019		(27,752,758	)		(5.73	)
Workers compensation dividend incurred		(3,578,450	)		1,753,283		(5,331,733	)		(304.10	)		1,405,102			5,402,447		(3,997,345	)		(73.99	)
Total underwriting deductions	$	778,526,830		$	696,897,230	$	81,629,600			11.71		$	1,516,007,923		$	1,402,824,950	$	113,182,973			8.07
Net underwriting gain (loss)	$	(18,088,997	)	$	89,623,856	$	(107,712,853	)		(120.18	)	$	(4,458,382	)	$	168,205,806	$	(172,664,188	)		(102.65	)
Investment income
Gross investment income earned	$	84,185,284		$	98,166,059	$	(13,980,775	)		(14.24	)	$	180,914,212		$	196,013,090	$	(15,098,878	)		(7.70	)
Net investment income earned		82,884,067			96,878,773		(13,994,706	)		(14.45	)		178,327,787			193,508,032		(15,180,245	)		(7.84	)
Net realized capital gains		(4,367,227	)		114,837,505		(119,204,732	)		(103.80	)		(94,132,383	)		134,396,687		(228,529,070	)		(170.04	)
Net investment gains (excl. subs)	$	78,516,840		$	211,716,278	$	(133,199,438	)		(62.91	)	$	84,195,404		$	327,904,719	$	(243,709,315	)		(74.32	)
Dividend from subsidiary		—			—		—			—			—			—		—			-
Net investment gains	$	78,516,840		$	211,716,278	$	(133,199,438	)		(62.91	)	$	84,195,404		$	327,904,719	$	(243,709,315	)		(74.32	)
Other income	$	545,153		$	1,791,815	$	(1,246,662	)		(69.58	)	$	929,335		$	3,308,351	$	(2,379,016	)		(71.91	)
Net income before federal income taxes	$	60,972,996		$	303,131,950	$	(242,158,954	)		(79.89	)	$	80,666,357		$	499,418,876	$	(418,752,519	)		(83.85	)
Federal and foreign income taxes incurred	$	15,827,058		$	55,061,836	$	49,751,322			(71.26	)	$	84,159,017		$	104,813,158	$	49,751,322			(19.71	)
Net income (loss) (statutory)	$	45,145,938		$	248,070,114	$	(291,910,276	)		(81.80	)	$	(3,492,660	)	$	394,605,718	$	(468,503,841	)		(100.89	)

* 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 Second-Quarter Supplement

13

Cincinnati Insurance Group — All 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			$	788		$	776		$	724		$	736		$	810		$	846		$	1,562			$	1,656			$	2,393			$	3,117
Net premiums earned			$	760		$	751		$	777		$	777		$	786		$	785		$	1,512			$	1,571			$	2,348			$	3,125
Losses paid			$	396		$	383		$	375		$	363		$	380		$	364		$	778			$	744			$	1,107			$	1,481
Loss reserve change				83			35			(83	)		69			(16	)		6			119				(9	)			60				(24	)
Total losses incurred			$	479		$	418		$	292		$	432		$	364		$	370		$	897			$	735			$	1,167			$	1,457
Allocated loss expense paid				32			25			37			29			33			32			58				65				94				131
Allocated loss expense reserve change				—			12			26			15			16			8			12				24				39				65
Total allocated loss expense incurred			$	32		$	37		$	63		$	44		$	49		$	40		$	70			$	89			$	133			$	196
Unallocated loss expense paid				44			43			46			44			41			46			86				87				132				178
Unallocated loss expense reserve change				2			4			(6	)		4			1			2			6				3				6				2
Total unallocated loss expense incurred			$	46		$	47		$	40		$	48		$	42		$	48		$	92			$	90			$	138			$	180
Underwriting expenses incurred				221			237			267			230			242			249			458				489				719				988
Underwriting profit (loss)			$	(18	)	$	12		$	115		$	23		$	89		$	78		$	(5	)		$	168			$	191			$	304
Ratio Data
Loss ratio				63.0	%		55.5	%		37.5	%		55.6	%		46.3	%		47.2	%		59.3	%			46.8	%			49.7	%			46.7	%
Allocated loss expense ratio				4.3			5.0			8.1			5.7			6.3			5.0			4.6				5.7				5.7				6.3
Unallocated loss expense ratio				6.0			6.1			5.3			6.1			5.3			6.1			6.1				5.7				5.8				5.7
Net underwriting expense ratio				28.1			30.6			37.0			31.3			29.8			29.4			29.3				29.5				30.1				31.7
Statutory combined ratio				101.5	%		97.2	%		87.9	%		98.7	%		87.7	%		87.7	%		99.3	%			87.7	%			91.3	%			90.4	%
Statutory combined ratio excluding catastrophes				86.6	%		91.5	%		88.1	%		97.0	%		86.3	%		87.3	%		89.0	%			86.8	%			90.1	%			89.5	%
Loss Detail
New losses greater than $4,000,000			$	18		$	8		$	—		$	5		$	—		$	—		$	26			$	—			$	5			$	5
New losses $2,000,000-$4,000,000				25			14			36			50			17			22			40				39				89				125
New losses $1,000,000-$2,000,000				13			22			24			26			26			28			39				54				80				104
New losses $750,000-$1,000,000				14			9			13			9			9			10			21				19				28				41
New losses $500,000-$750,000				23			12			16			14			15			15			24				30				44				60
New losses $250,000-$500,000				20			29			29			24			22			23			57		��		45				69				98
Case reserve development above $250,000				54			48			68			50			48			53			103				101				151				219
Large losses subtotal			$	167		$	142		$	186		$	178		$	137		$	151		$	310			$	288			$	466			$	652
IBNR incurred				(6	)		6			(43	)		—			7			7			—				15				15				(25	)
Catastrophe losses incurred				113			43			(2	)		13			11			3			156				15				28				26
Remaining incurred				205			227			151			241			209			210			431				417				658				804
Total losses incurred			$	479		$	418		$	292		$	432		$	364		$	371		$	897			$	735			$	1,167			$	1,457
Loss Ratio
New losses greater than $4,000,000				2.4	%		1.1	%		—	%		0.6	%		—	%		—	%		1.7	%			—	%			0.2	%			0.2	%
New losses $2,000,000-$4,000,000				3.3			1.9			4.6			6.4			2.2			2.8			2.6				2.5				3.8				4.0
New losses $1,000,000-$2,000,000				2.2			2.9			3.1			3.3			3.3			3.6			2.6				3.4				3.4				3.3
New losses $750,000-$1,000,000				1.7			1.2			1.7			1.2			1.1			1.3			1.4				1.2				1.2				1.3
New losses $500,000-$750,000				1.7			1.6			2.1			1.8			1.9			1.9			1.6				1.9				1.9				1.9
New losses $250,000-$500,000				3.6			3.9			3.7			3.1			2.8			2.9			3.7				2.9				2.9				3.1
Case reserve development above $250,000				7.1			6.4			8.8			6.4			6.1			6.8			6.9				6.4				6.4				7.0
Large losses subtotal				22.0	%		18.9	%		23.9	%		22.9	%		17.4	%		19.2	%		20.5	%			18.3	%			19.8	%			20.9	%
IBNR incurred				(0.9	)		0.8			(5.5	)		—			0.9			1.0			—				0.9				0.6				(0.9	)
Total catastrophe losses incurred				14.9			5.7			(0.2	)		1.7			1.4			0.4			10.3				0.9				1.2				0.8
Remaining incurred				27.0			30.1			19.3			31.0			26.6			26.6			28.5				26.7				28.1				25.9
Total loss ratio				63.0	%		55.5	%		37.5	%		55.6	%		46.3	%		47.2	%		59.3	%			46.8	%			49.7	%			46.7	%
Loss Claim Count
New losses greater than $4,000,000				4			2			—			1			—			—			7				—				1				1
New losses $2,000,000-$4,000,000				9			5			12			16			5			7			13				12				28				40
New losses $1,000,000-$2,000,000				13			19			18			21			21			21			32				42				63				81
New losses $750,000-$1,000,000				15			10			16			11			11			12			25				23				34				50
New losses $500,000-$750,000				23			21			27			25			26			24			44				50				75				102
New losses $250,000-$500,000				84			87			88			75			67			72			171				139				214				302
Case reserve development above $250,000				84			81			112			93			82			93			165				175				268				380
Large losses total				232			225			273			242			212			229			457				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 Second-Quarter Supplement

14

Cincinnati Insurance Group — Commercial 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	12/31/07
Net premiums written			$	597		$	625		$	562		$	544		$	613		$	693		$	1,222		$	1,306			$	1,851			$	2,413
Net premiums earned			$	586		$	574		$	601		$	600		$	606		$	604		$	1,161		$	1,210			$	1,810			$	2,411
Losses paid			$	280		$	266		$	272		$	253		$	270		$	259		$	546		$	530			$	783			$	1,055
Loss reserve change				67			32			(53	)		66			(12	)		23			100			11				77				23
Total losses incurred			$	347		$	298		$	219		$	319		$	258		$	282		$	646		$	541			$	860			$	1,078
Allocated loss expense paid				28			22			33			26			30			28			50			58				84				117
Allocated loss expense reserve change				1			12			27			16			16			8			13			24				40				67
Total allocated loss expense incurred			$	29		$	34		$	60		$	42		$	46		$	36		$	63		$	82			$	124			$	184
Unallocated loss expense paid				31			30			34			31			30			33			61			63				94				128
Unallocated loss expense reserve change				1			3			(3	)		4			1			3			4			4				8				5
Total unallocated loss expense incurred			$	32		$	33		$	31		$	35		$	31		$	36		$	65		$	67			$	102			$	133
Underwriting expenses incurred				166			186			215			170			179			193			352			371				541				757
Underwriting profit (loss)			$	12		$	23		$	76		$	34		$	92		$	57		$	35		$	149			$	183			$	259
Ratio Data
Loss ratio				59.2	%		52.0	%		36.4	%		53.2	%		42.6	%		46.8	%		55.6	%		44.7	%			47.5	%			44.8	%
Allocated loss expense ratio				5.0			5.9			9.9			7.0			7.6			6.0			5.4			6.8				6.8				7.6
Unallocated loss expense ratio				5.5			5.7			5.2			5.8			5.1			5.9			5.7			5.5				5.6				5.5
Net underwriting expense ratio				27.8			29.7			38.2			31.2			29.1			27.8			28.8			28.4				29.3				31.4
Statutory combined ratio				97.5	%		93.3	%		89.7	%		97.2	%		84.4	%		86.5	%		95.5	%		85.4	%			89.2	%			89.3	%
Statutory combined ratio excluding catastrophes				86.2	%		89.4	%		89.7	%		97.1	%		83.6	%		84.7	%		87.9	%		84.1	%			88.3	%			88.6	%
Loss Detail
New losses greater than $4,000,000			$	18		$	8		$	—		$	5		$	—		$	—		$	26		$	—			$	5			$	5
New losses $2,000,000-$4,000,000				25			14			34			43			13			22			40			35				78				112
New losses $1,000,000-$2,000,000				15			18			19			25			23			23			33			46				71				90
New losses $750,000-$1,000,000				11			8			11			8			6			9			19			15				23				34
New losses $500,000-$750,000				12			9			14			11			12			12			20			24				35				49
New losses $250,000-$500,000				22			23			21			18			16			18			45			34				52				73
Case reserve development above $250,000				51			44			60			45			46			49			96			95				140				200
Large losses subtotal			$	154		$	124		$	159		$	155		$	116		$	133		$	279		$	249			$	404			$	563
IBNR incurred				(8	)		6			(29	)		—			6			7			(2	)		14				14				(12	)
Catastrophe losses incurred				66			22			—			1			5			10			89			16				17				16
Remaining incurred				135			146			89			163			131			132			280			262				425				511
Total losses incurred			$	347		$	298		$	219		$	319		$	258		$	282		$	646		$	541			$	860			$	1,078
Loss Ratio
New losses greater than $4,000,000				3.1	%		1.4	%		—	%		0.8	%		—	%		—	%		2.3	%		—	%			0.3	%			0.2	%
New losses $2,000,000-$4,000,000				4.3			2.5			5.7			7.2			2.1			3.6			3.4			2.9				4.3				4.5
New losses $1,000,000-$2,000,000				2.5			3.2			3.2			4.2			3.8			3.8			2.9			3.8				3.9				3.7
New losses $750,000-$1,000,000				1.9			1.3			1.8			1.3			1.0			1.5			1.6			1.2				1.3				1.4
New losses $500,000-$750,000				2.0			1.5			2.2			1.8			2.0			2.0			1.7			2.0				1.9				2.0
New losses $250,000-$500,000				3.8			4.0			3.4			3.0			2.6			2.8			3.9			2.7				2.9				2.9
Case reserve development above $250,000				8.7			7.8			10.1			7.5			7.6			8.1			8.3			7.8				7.6				8.3
Large losses subtotal				26.3	%		21.7	%		26.4	%		25.8	%		19.1	%		21.8	%		24.0	%		20.4	%			22.2	%			23.2	%
IBNR incurred				(1.4	)		1.0			(4.8	)		—			1.0			1.2			(0.2	)		1.1				0.8				(0.5	)
Total catastrophe losses incurred				11.3			3.9			—			0.2			0.8			1.8			7.6			1.3				0.9				0.7
Remaining incurred				23.0			25.4			14.8			27.2			21.7			22.0			24.2			21.9				23.6				21.4
Total loss ratio				59.2	%		52.0	%		36.4	%		53.2	%		42.6	%		46.8	%		55.6	%		44.7	%			47.5	%			44.8	%
Loss Claim Count
New losses greater than $4,000,000				4			2			—			1			—			—			6			—				1				1
New losses $2,000,000-$4,000,000				9			5			11			14			4			7			14			11				25				36
New losses $1,000,000-$2,000,000				12			16			14			20			19			17			28			36				56				70
New losses $750,000-$1,000,000				13			9			13			9			7			11			22			18				27				40
New losses $500,000-$750,000				21			16			23			20			21			20			37			41				61				84
New losses $250,000-$500,000				67			68			64			57			49			57			135			106				163				227
Case reserve development above $250,000				76			74			96			80			75			85			150			160				240				336
Large losses total				202			190			221			201			175			197			392			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 Second-Quarter Supplement

15

Cincinnati Insurance Group — Personal Lines
Statutory Quarterly Analysis
(Based on reported data — see Page 23 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			$	191		$	150		$	162		$	192		$	197		$	153		$	341		$	350			$	542			$	704
Net premiums earned			$	174		$	177		$	176		$	177		$	180		$	181		$	351		$	361			$	538			$	714
Losses paid			$	116		$	116		$	103		$	110		$	110		$	105		$	232		$	214			$	324			$	426
Loss reserve change				16			3			(30	)		3			(4	)		(17	)		19			(20	)			(17	)			(47	)
Total losses incurred			$	132		$	119		$	73		$	113		$	106		$	88		$	251		$	194			$	307			$	379
Allocated loss expense paid				4			3			4			3			3			4			7			7				10				14
Allocated loss expense reserve change				(1	)		—			(1	)		(1	)		—			—			—			—				(1	)			(2	)
Total allocated loss expense incurred			$	3		$	3		$	3		$	2		$	3		$	4		$	7		$	7			$	9			$	12
Unallocated loss expense paid				13			13			12			13			11			13			25			24				38				50
Unallocated loss expense reserve change				1			1			(3	)		—			—			(1	)		2			(1	)			(2	)			(3	)
Total unallocated loss expense incurred			$	14		$	14		$	9		$	13		$	11		$	12		$	27		$	23			$	36			$	47
Underwriting expenses incurred				55			51			52			60			63			56			106			118				178				231
Underwriting profit (loss)			$	(30	)	$	(10	)	$	39		$	(11	)	$	(3	)	$	21		$	(40	)	$	19			$	8			$	45
Ratio Data
Loss ratio				75.6	%		67.4	%		41.3	%		63.8	%		58.6	%		48.9	%		71.5	%		53.8	%			57.1	%			53.2	%
Allocated loss expense ratio				1.9			1.9			1.8			1.4			1.9			1.8			1.9			1.9				1.7				1.7
Unallocated loss expense ratio				7.9			7.4			5.5			7.3			6.2			6.6			7.6			6.4				6.7				6.4
Net underwriting expense ratio				28.9			34.1			32.8			31.1			31.9			36.2			31.2			33.7				32.8				32.8
Statutory combined ratio				114.3	%		110.8	%		81.4	%		103.6	%		98.6	%		93.5	%		112.2	%		95.8	%			98.3	%			94.1	%
Statutory combined ratio excluding catastrophes				87.3	%		99.2	%		82.4	%		96.6	%		95.1	%		97.6	%		92.9	%		96.1	%			96.2	%			92.8	%
Loss Detail
New losses greater than $4,000,000			$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—			$	—			$	—
New losses $2,000,000-$4,000,000				—			—			2			7			4			—			—			4				11				13
New losses $1,000,000-$2,000,000				2			4			5			1			3			5			5			8				9				14
New losses $750,000-$1,000,000				2			1			2			1			3			1			3			4				5				7
New losses $500,000-$750,000				1			3			2			3			3			3			4			6				9				11
New losses $250,000-$500,000				5			6			8			6			6			5			12			11				17				25
Case reserve development above $250,000				3			4			8			5			2			4			7			6				11				19
Large losses subtotal			$	13		$	18		$	27		$	23		$	21		$	18		$	31		$	39			$	62			$	89
IBNR incurred				2			—			(14	)		—			1			—			2			1				1				(13	)
Catastrophe losses incurred				47			21			(2	)		12			6			(7	)		67			(1	)			11				10
Remaining incurred				70			80			62			78			78			77			151			155				233				293
Total losses incurred			$	132		$	119		$	73		$	113		$	106		$	88		$	251		$	194			$	307			$	379
Loss Ratio
New losses greater than $4,000,000				—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%			—	%			—	%
New losses $2,000,000-$4,000,000				—			—			1.0			4.1			2.2			—			—			1.1				2.1				1.8
New losses $1,000,000-$2,000,000				1.1			2.1			2.8			0.6			1.7			3.0			1.6			2.3				1.7				2.0
New losses $750,000-$1,000,000				1.1			0.4			1.1			0.6			1.7			0.7			0.8			1.1				0.9				1.0
New losses $500,000-$750,000				0.7			1.5			1.1			1.7			1.7			1.9			1.1			1.8				1.7				1.5
New losses $250,000-$500,000				3.0			3.6			4.5			3.4			3.3			3.0			3.3			3.1				3.3				3.6
Case reserve development above $250,000				1.5			2.5			4.4			2.9			1.2			2.2			1.9			1.8				2.1				2.7
Large losses subtotal				7.5	%		10.0	%		15.1	%		13.2	%		11.8	%		10.6	%		8.7	%		11.2	%			11.8	%			12.6	%
IBNR incurred				0.9			0.2			(7.8	)		—			0.4			—			0.6			0.2				0.1				(1.8	)
Total catastrophe losses incurred				27.0			11.6			(1.0	)		7.0			3.5			(4.1	)		19.3			(0.3	)			2.1				1.3
Remaining incurred				40.2			45.6			35.0			43.6			42.9			42.4			42.9			42.7				43.1				41.1
Total loss ratio				75.6	%		67.4	%		41.3	%		63.8	%		58.6	%		48.9	%		71.5	%		53.8	%			57.1	%			53.2	%
Loss Claim Count
New losses greater than $4,000,000				—			—			—			—			—			—			—			—				—				—
New losses $2,000,000-$4,000,000				—			—			1			2			1			—			—			1				3				4
New losses $1,000,000-$2,000,000				1			3			4			1			2			4			4			6				7				11
New losses $750,000-$1,000,000				2			1			3			2			4			1			3			5				7				10
New losses $500,000-$750,000				2			5			4			5			5			4			7			9				14				18
New losses $250,000-$500,000				17			19			24			18			18			15			36			33				51				75
Case reserve development above $250,000				8			7			16			13			7			8			15			15				28				44
Large losses total				30			35			52			41			37			32			65			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 Second-Quarter Supplement

16

Cincinnati Insurance Group
Direct Written Premiums by Risk State by Line of Business for the Six Months Ended June 30, 2008

(Dollars in millions)																						6/30/2008		6/30/2007		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	$	10.9	$	8.5	$	4.0	$	0.5		$	3.8	$	1.0	$	0.3	$	8.1	$	12.3	$	2.6	$	51.9	$	50.3		(1.6	)		9.6			3.3
AZ		6.9		3.3		5.1		0.2			0.4		0.4		0.4		0.0		0.1		0.0		16.9		16.6		2.2			(5.6	)		1.5
AR		5.0		5.1		3.3		2.7			1.8		0.7		0.2		1.3		1.4		0.4		21.9		21.7		0.0			1.0			1.1
DE		0.5		0.4		0.5		1.1			0.1		0.0		0.0		0.0		0.0		0.0		2.6		2.1		15.9			48.3			24.2
FL		16.3		13.2		6.7		0.9			1.4		1.6		0.5		6.1		9.7		1.8		58.2		69.1		(12.2	)		(23.5	)		(15.8	)
GA		14.9		10.0		9.8		8.2			3.4		3.4		0.4		14.9		13.8		3.8		82.7		84.0		(3.6	)		1.7			(1.6	)
ID		5.6		2.3		2.8		0.2			0.5		0.7		0.1		0.0		0.0		0.0		12.1		10.3		16.5			(222.6	)		17.3
IL		37.2		23.7		17.0		31.7			6.6		4.4		1.3		11.4		9.3		3.2		145.8		153.8		(6.0	)		(0.6	)		(5.2	)
IN		25.1		19.1		13.2		16.0			3.9		3.9		1.1		13.0		12.5		3.4		111.2		117.5		(7.6	)		1.3			(5.4	)
IA		10.3		6.5		4.9		13.4			2.4		1.2		0.6		1.7		1.9		0.9		43.8		45.2		(2.5	)		(11.8	)		(3.1	)
KS		4.0		4.1		2.3		4.7			1.5		0.7		0.2		2.1		2.8		0.6		22.9		23.5		(0.8	)		(8.6	)		(2.4	)
KY		11.5		10.0		7.5		2.0			2.7		1.5		0.5		9.7		7.6		2.1		55.0		53.3		1.7			5.0			3.2
MD		7.1		2.8		5.1		6.4			0.5		0.9		0.2		0.0		0.8		0.2		23.9		24.8		(4.3	)		18.5			(3.7	)
MI		16.0		10.8		7.6		9.3			5.8		2.8		0.9		5.4		6.8		1.6		67.0		76.5		(12.6	)		(12.1	)		(12.4	)
MN		12.7		7.7		5.0		4.7			1.7		1.2		0.6		3.1		2.8		1.4		40.9		48.5		(16.1	)		(13.9	)		(15.7	)
MO		13.5		9.1		6.4		9.5			2.5		1.0		0.4		1.2		2.0		0.4		46.2		50.5		(8.9	)		(6.9	)		(8.5	)
MT		8.6		3.2		3.9		0.1			0.5		0.3		0.2		0.1		0.2		0.0		17.0		16.2		3.8			250.9			4.9
NE		3.3		2.7		2.0		4.0			0.7		0.7		0.2		0.4		0.5		0.2		14.7		15.2		(2.9	)		(18.3	)		(3.3	)
NH		1.6		1.0		0.7		1.2			0.3		0.3		0.1		0.3		0.3		0.2		6.1		6.6		(5.0	)		(8.7	)		(7.0	)
NM		0.8		0.3		0.5		0.1			0.0		0.1		0.0		0.0		0.0		0.0		1.8		0.1		2675.4			0.0			1700.0
NY		16.1		4.2		5.1		1.1			0.7		1.4		0.3		0.0		0.0		0.0		29.0		33.5		(13.6	)		(3.7	)		(13.4	)
NC		20.3		14.6		11.7		16.2			6.8		4.7		0.7		0.5		0.9		1.3		77.8		80.3		(3.6	)		5.7			(3.2	)
ND		3.0		1.8		1.4		0.0			0.4		0.4		0.1		0.2		0.2		0.1		7.6		6.9		14.8			(20.6	)		10.3
OH		79.6		47.3		35.2		(0.5	)		10.6		12.1		2.4		62.8		44.4		14.9		308.7		328.7		(8.6	)		(1.9	)		(6.1	)
PA		25.5		14.8		15.7		31.4			4.9		3.5		0.8		3.7		2.9		1.6		105.0		108.0		(2.5	)		(5.7	)		(2.8	)
SC		6.6		4.2		3.8		3.5			1.5		1.2		0.1		0.0		0.0		0.1		21.1		23.4		(9.8	)		(7.3	)		(9.8	)
SD		2.8		1.8		1.4		3.1			0.2		0.2		0.1		0.0		0.0		0.0		9.6		9.1		5.4			(29.0	)		5.9
TN		13.3		9.3		7.9		7.3			4.3		2.4		0.5		4.1		4.5		1.5		55.2		58.3		(6.7	)		1.2			(5.3	)
UT		6.0		2.4		3.3		0.0			0.3		1.0		0.2		0.0		0.0		0.0		13.2		11.8		10.9			74.2			11.7
VT		2.7		1.9		1.6		3.6			0.4		0.3		0.1		0.4		0.4		0.1		11.6		11.9		(2.6	)		(7.6	)		(2.5	)
VA		17.5		12.8		12.2		11.7			2.5		2.7		0.5		4.4		3.8		1.4		69.4		74.6		(7.2	)		(5.4	)		(7.0	)
WA		0.4		0.2		0.1		0.0			0.0		0.0		0.0		0.0		0.0		0.0		0.7		0.2		230.4			0.0			250.0
WV		3.7		2.5		2.8		0.0			1.2		0.5		0.1		0.0		0.3		0.1		11.3		13.5		(16.3	)		(24.2	)		(16.6	)
WI		14.6		9.4		6.4		15.8			2.3		1.5		0.7		4.3		3.6		1.7		60.4		64.0		(6.2	)		(2.4	)		(5.6	)
All Other		2.7		2.3		1.7		3.2			0.1		0.8		0.1		0.0		0.1		0.0		11.0		11.8		24.1			2.2			(6.8	)
Total	$	426.7	$	273.5	$	218.5	$	213.4		$	76.6	$	59.6	$	15.2	$	159.2	$	145.9	$	45.7	$	1,634.2	$	1,721.8		(5.7	)		(2.7	)		(5.1	)
Other Direct		0.0		1.0		0.0		4.8			0.0		0.0		0.0		0.0		1.4		0.0		7.2		8.2		10.4			(50.6	)		(12.2	)
Total Direct	$	426.7	$	274.5	$	218.5	$	218.2		$	76.6	$	59.6	$	15.2	$	159.2	$	147.3	$	45.7	$	1,641.4	$	1,730.0		(5.7	)		(3.1	)		(5.1	)

2008 Second-Quarter Supplement

17

Cincinnati Insurance Group
Quarterly Property Casualty Data — By Commercial Lines of Business

						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
Commercial casualty:
Written premiums			$	199		$	211		$	189		$	179		$	218		$	245		$	410		$	462			$	641			$	830
Earned premiums				194			190			204			205			209			209			384			418				623				827
Loss and loss expenses ratio				39.8	%		58.3	%		32.0	%		63.7	%		54.6	%		53.5	%		48.9	%		54.2	%			57.4	%			51.1	%
Less catastrophe loss ratio				—			—			—			—			—			—			—			—				—				—
Loss and loss expenses excluding catastrophe loss ratio				39.8	%		58.3	%		32.0	%		63.7	%		54.6	%		53.5	%		48.9	%		54.2	%			57.4	%			51.1	%
Commercial property:
Written premiums			$	124		$	124		$	116		$	120		$	125		$	138		$	247		$	263			$	383			$	499
Earned premiums				123			122			124			125			125			123			244			248				373				497
Loss and loss expenses ratio				97.6	%		75.5	%		32.9	%		61.5	%		45.8	%		53.6	%		86.6	%		49.7	%			53.7	%			48.5	%
Less catastrophe loss ratio				38.0			16.5			—			(1.4	)		3.2			6.9			27.3			5.0				2.9				2.2
Loss and loss expenses excluding catastrophe loss ratio				59.6	%		59.0	%		32.9	%		62.9	%		42.6	%		46.7	%		59.3	%		44.7	%			50.8	%			46.3	%
Commercial auto:
Written premiums			$	108		$	107		$	100		$	92		$	112		$	124		$	215		$	236			$	329			$	429
Earned premiums				104			101			110			108			110			113			205			223				331				440
Loss and loss expenses ratio				67.5	%		63.4	%		60.3	%		66.9	%		62.9	%		64.6	%		65.5	%		63.4	%			64.5	%			63.5	%
Less catastrophe loss ratio				3.4			(0.4	)		(0.2	)		0.4			—			(0.2	)		1.5			—				0.1				—
Loss and loss expenses excluding catastrophe loss ratio				64.1	%		63.8	%		60.5	%		66.5	%		62.9	%		64.8	%		64.0	%		63.4	%			64.4	%			63.5	%
Workers’ compensation:
Written premiums			$	95		$	114		$	88		$	84		$	92		$	113		$	209		$	206			$	289			$	378
Earned premiums				94			94			93			94			95			92			189			187				280				373
Loss and loss expenses ratio				78.3	%		64.8	%		113.6	%		82.0	%		66.8	%		76.5	%		71.5	%		71.5	%			75.0	%			84.6	%
Less catastrophe loss ratio				—			—			—			—			—			—			—			—				—				—
Loss and loss expenses excluding catastrophe loss ratio				78.3	%		64.8	%		113.6	%		82.0	%		66.8	%		76.5	%		71.5	%		71.5	%			75.0	%			84.6	%
Specialty package:
Written premiums			$	36		$	37		$	36		$	34		$	36		$	41		$	73		$	77			$	111			$	146
Earned premiums				36			35			36			36			37			36			72			73				109				146
Loss and loss expenses ratio				109.7	%		63.4	%		41.9	%		76.7	%		49.9	%		69.6	%		86.8	%		59.6	%			65.3	%			59.4	%
Less catastrophe loss ratio				43.9			8.1			0.6			6.2			2.6			7.0			26.2			4.7				5.2				4.1
Loss and loss expenses excluding catastrophe loss ratio				65.8	%		55.3	%		41.3	%		70.5	%		47.3	%		62.6	%		60.6	%		54.9	%			60.1	%			55.3	%
Surety and executive risk:
Written premiums			$	28		$	25		$	26		$	28		$	23		$	25		$	54		$	48			$	76			$	102
Earned premiums				28			25			27			25			24			24			53			47				73				100
Loss and loss expenses ratio				92.0	%		45.9	%		55.7	%		36.5	%		49.3	%		24.0	%		70.1	%		36.7	%			36.7	%			41.8	%
Less catastrophe loss ratio				—			—			—			—			—			—			—			—				—				—
Loss and loss expenses excluding catastrophe loss ratio				92.0	%		45.9	%		55.7	%		36.5	%		49.3	%		24.0	%		70.1	%		36.7	%			36.7	%			41.8	%
Machinery and equipment:
Written premiums			$	7		$	7		$	7		$	7		$	7		$	7		$	14		$	14			$	22			$	29
Earned premiums				7			7			7			7			7			7			14			14				21				28
Loss and loss expense ratio				34.1	%		53.3	%		27.8	%		34.7	%		20.4	%		28.2	%		43.6	%		24.3	%			27.8	%			27.8	%
Less catastrophe loss ratio				1.0			—			(0.8	)		1.3			—			(1.6	)		0.6			(0.8	)			(0.1	)			(0.3	)
Loss and loss expense excluding catastrophe loss ratio				33.1	%		53.3	%		28.6	%		33.4	%		20.4	%		29.8	%		43.0	%		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 Second-Quarter Supplement

18

Cincinnati Insurance Group
Quarterly Property Casualty Data — By Personal Lines of Business

						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
Personal auto:
Written premiums			$	89		$	69		$	75		$	92		$	93		$	72		$	158		$	164			$	256			$	332
Earned premiums				82			83			83			85			86			88			164			174				259				342
Loss and loss expenses ratio				56.8	%		67.6	%		65.3	%		67.7	%		67.6	%		66.5	%		62.2	%		67.1	%			67.3	%			66.8	%
Less catastrophe loss ratio				3.1			1.7			(0.3	)		0.7			(0.3	)		(2.3	)		2.4			(1.3	)			(0.6	)			(0.6	)
Loss and loss expenses excluding catastrophe loss ratio				53.7	%		65.9	%		65.6	%		67.0	%		67.9	%		68.8	%		59.8	%		68.4	%			67.9	%			67.4	%
Homeowner:
Written premiums			$	79		$	60		$	66		$	77		$	80		$	61		$	139		$	141			$	218			$	284
Earned premiums				71			72			71			70			72			71			143			143				214				285
Loss and loss expenses ratio				130.7	%		91.4	%		36.6	%		82.7	%		66.9	%		50.0	%		110.9	%		58.5	%			66.5	%			59.0	%
Less catastrophe loss ratio				60.0			25.2			(2.3	)		15.6			8.3			(7.5	)		42.5			0.4				5.4				3.5
Loss and loss expenses excluding catastrophe loss ratio				70.7	%		66.2	%		38.9	%		67.1	%		58.6	%		57.5	%		68.4	%		58.1	%			61.1	%			55.5	%
Other personal:
Written premiums			$	23		$	21		$	21		$	23		$	24		$	20		$	44		$	44			$	67			$	88
Earned premiums				21			22			22			22			22			22			44			43				65				87
Loss and loss expenses ratio				43.2	%		62.2	%		24.1	%		57.9	%		62.8	%		43.4	%		52.9	%		53.1	%			54.7	%			47.0	%
Less Catastrophe loss ratio				8.0			4.1			0.6			3.7			3.5			(0.1	)		6.0			1.3				2.0				1.7
Loss and loss expenses excluding catastrophe loss ratio				35.2	%		58.1	%		23.5	%		54.2	%		59.3	%		43.5	%		46.9	%		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 Second-Quarter Supplement

19

Cincinnati Insurance Group
Quarterly Detailed Loss Analysis

	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
All Lines
Loss and loss expenses:
Loss and loss expenses — current AY			$	531		$	467		$	515		$	558		$	484		$	472		$	998		$	956			$	1,515			$	2,029
Loss and loss expenses — prior AY’s				(87	)		(9	)		(118	)		(47	)		(40	)		(17	)		(96	)		(57	)			(105	)			(222	)
Catastrophes — current AY				113			47			(1	)		15			15			16			160			30				47				45
Catastrophes — prior AY’s				—			(4	)		(1	)		(2	)		(4	)		(13	)		(4	)		(17	)			(20	)			(20	)
Total			$	557		$	501		$	395		$	524		$	455		$	458		$	1,058		$	912			$	1,437			$	1,832
Ratio to Earned Premiums
Loss and loss expenses :
Loss and loss expenses — current AY				69.8	%		62.2	%		66.3	%		71.9	%		61.6	%		60.2	%		66.0	%		60.9	%			64.5	%			64.9	%
Loss and loss expenses — prior AY’s				(11.4	)		(1.3	)		(15.2	)		(6.2	)		(5.1	)		(2.3	)		(6.3	)		(3.6	)			(4.5	)			(7.1	)
Catastrophes — current AY				14.8			6.2			(0.1	)		2.0			1.9			2.1			10.6			1.9				2.0				1.3
Catastrophes — prior AY’s				0.1			(0.5	)		(0.1	)		(0.3	)		(0.5	)		(1.7	)		(0.3	)		(1.1	)			(0.9	)			(0.6	)
Total				73.3	%		66.6	%		50.9	%		67.4	%		57.9	%		58.3	%		70.0	%		58.1	%			61.1	%			58.5	%
Commercial Lines
Loss and loss expenses:
Loss and loss expenses — current AY			$	416		$	354		$	412		$	433		$	370		$	356		$	770		$	726			$	1,158			$	1,570
Loss and loss expenses — prior AY’s				(74	)		(11	)		(102	)		(38	)		(40	)		(12	)		(85	)		(52	)			(90	)			(192	)
Catastrophes — current AY				66			25			—			5			8			12			92			20				26				25
Catastrophes — prior AY’s				—			(3	)		—			(4	)		(3	)		(2	)		(3	)		(5	)			(9	)			(9	)
Total			$	408		$	365		$	310		$	396		$	335		$	354		$	774		$	689			$	1,085			$	1,394
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses — current AY				71.1	%		61.6	%		68.5	%		72.2	%		61.0	%		59.0	%		66.4	%		60.0	%			63.9	%			65.2	%
Loss and loss expenses — prior AY’s				(12.6	)		(1.9	)		(17.0	)		(6.4	)		(6.6	)		(2.1	)		(7.3	)		(4.2	)			(5.0	)			(8.0	)
Catastrophes — current AY				11.2			4.5			0.0			0.9			1.4			2.2			7.9			1.8				1.5				1.0
Catastrophes — prior AY’s				0.1			(0.6	)		(0.0	)		(0.8	)		(0.5	)		(0.4	)		(0.3	)		(0.4	)			(0.5	)			(0.4	)
Total				69.7	%		63.6	%		51.4	%		66.0	%		55.3	%		58.7	%		66.7	%		57.2	%			59.9	%			57.8	%
Personal Lines
Loss and loss expenses:
Loss and loss expenses — current AY			$	115		$	113		$	103		$	125		$	114		$	116		$	228		$	230			$	357			$	459
Loss and loss expenses — prior AY’s				(13	)		2			(16	)		(9	)		—			(5	)		(11	)		(5	)			(15	)			(30	)
Catastrophes — current AY				47			22			(1	)		10			7			4			68			10				21				20
Catastrophes — prior AY’s				—			(1	)		(1	)		2			(1	)		(11	)		(1	)		(12	)			(11	)			(11	)
Total			$	149		$	136		$	85		$	128		$	120		$	104		$	284		$	223			$	352			$	438
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses — current AY				65.6	%		64.1	%		58.5	%		70.8	%		63.3	%		64.3	%		64.8	%		64.1	%			66.3	%			64.4	%
Loss and loss expenses — prior AY’s				(7.2	)		1.0			(8.9	)		(5.3	)		(0.1	)		(2.9	)		(3.1	)		(1.5	)			(2.8	)			(4.2	)
Catastrophes — current AY				27.0			11.9			(0.7	)		5.9			3.8			2.0			19.6			2.9				3.9				2.7
Catastrophes — prior AY’s				0.0			(0.3	)		(0.3	)		1.1			(0.3	)		(6.1	)		(0.3	)		(3.5	)			(1.9	)			(1.5	)
Total				85.4	%		76.7	%		48.6	%		72.5	%		66.7	%		57.3	%		81.0	%		62.0	%			65.5	%			61.4	%

2008 Second-Quarter Supplement

20

Cincinnati Insurance Group
Quarterly Property Casualty Data — All 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)			$	800		$	773		$	749		$	779		$	808		$	811		$	1,572		$	1,619			$	2,398			$	3,149
Written premium adjustment - statutory only				(12	)		3			(25	)		(43	)		2			35			(9	)		37				(6	)			(32	)
Reported written premiums (statutory)*			$	788		$	776		$	724		$	736		$	810		$	846		$	1,563		$	1,656			$	2,392			$	3,117
Unearned premiums change				(28	)		(25	)		53			41			(23	)		(61	)		(51	)		(85	)			(44	)			8
Earned premiums			$	760		$	751		$	777		$	777		$	787		$	785		$	1,512		$	1,571			$	2,348			$	3,125
Statutory combined ratio
Statutory combined ratio				101.5	%		97.2	%		87.8	%		98.7	%		87.7	%		87.7	%		99.5	%		87.7	%			91.3	%			90.3	%
Less catastrophe losses				14.9			5.7			(0.3	)		1.7			1.4			0.4			10.3			0.9				1.2				0.8
Statutory combined ratio excluding catastrophe losses				86.6	%		91.5	%		88.1	%		97.0	%		86.3	%		87.3	%		89.2	%		86.8	%			90.1	%			89.5	%
Commission expense ratio				17.4	%		17.7	%		23.1	%		18.1	%		18.1	%		18.0	%		17.5	%		18.0	%			18.0	%			19.2	%
Other expense ratio				10.7			12.9			13.9			13.2			11.7			11.4			11.8			11.6				12.1				12.5
Statutory expense ratio				28.1	%		30.6	%		37.0	%		31.3	%		29.8	%		29.4	%		29.3	%		29.6	%			30.1	%			31.7	%
GAAP combined ratio
GAAP combined ratio				103.5	%		98.6	%		85.6	%		97.3	%		88.6	%		89.6	%		101.1	%		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.

2008 Second-Quarter Supplement

21

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)			$	609		$	622		$	586		$	587		$	611		$	658		$	1,231		$	1,269			$	1,857			$	2,444
Written premium adjustment — statutory only				(12	)		3			(24	)		(43	)		2			35			(9	)		37				(6	)			(31	)
Reported written premiums (statutory)*			$	597		$	625		$	562		$	544		$	613		$	693		$	1,222		$	1,306			$	1,851			$	2,413
Unearned premiums change				(11	)		(51	)		39			56			(6	)		(89	)		(61	)		(96	)			(41	)			(2	)
Earned premiums			$	586		$	574		$	601		$	600		$	607		$	604		$	1,161		$	1,210			$	1,810			$	2,411
Statutory combined ratio
Statutory combined ratio				97.5	%		93.3	%		89.7	%		97.3	%		84.4	%		86.5	%		95.6	%		85.4	%			89.2	%			89.2	%
Less catastrophe losses				11.3			3.9			—			0.2			0.8			1.8			7.6			1.3				0.9				0.6
Statutory combined ratio excluding catastrophe losses				86.2	%		89.4	%		89.7	%		97.1	%		83.6	%		84.7	%		88.0	%		84.1	%			88.3	%			88.6	%
Commission expense ratio				16.9	%		16.5	%		23.1	%		18.2	%		17.7	%		16.7	%		16.7	%		17.2	%			17.5	%			18.8	%
Other expense ratio				10.9			13.2			15.1			13.1			11.4			11.2			12.1			11.3				11.8				12.6
Statutory expense ratio				27.8	%		29.7	%		38.2	%		31.3	%		29.1	%		27.9	%		28.8	%		28.5	%			29.3	%			31.4	%
GAAP combined ratio
GAAP combined ratio				99.9	%		95.0	%		87.3	%		95.4	%		85.2	%		88.9	%		97.4	%		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.

2008 Second-Quarter Supplement

22

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
Premiums
Adjusted written premiums (statutory)			$	191		$	150		$	163		$	192		$	197		$	153		$	341		$	350			$	541			$	705
Written premium adjustment — statutory only				—			—			(1	)		—			—			—			—			—				—				(1	)
Reported written premiums (statutory)*			$	191		$	150		$	162		$	192		$	197		$	153		$	341		$	350			$	541			$	704
Unearned premiums change				(17	)		27			14			(15	)		(17	)		28			10			11				(3	)			10
Earned premiums			$	174		$	177		$	176		$	177		$	180		$	181		$	351		$	361			$	538			$	714
Statutory combined ratio
Statutory combined ratio				114.3	%		110.8	%		81.4	%		103.6	%		98.6	%		93.5	%		112.2	%		95.8	%			98.3	%			94.1	%
Less catastrophe losses				27.0			11.6			(1.0	)		7.0			3.5			(4.1	)		19.3			(0.3	)			2.1				1.3
Statutory combined ratio excluding catastrophe losses				87.3	%		99.2	%		82.4	%		96.6	%		95.1	%		97.6	%		92.9	%		96.1	%			96.2	%			92.8	%
Commission expense ratio				18.6	%		22.3	%		22.8	%		17.6	%		19.3	%		23.8	%		20.2	%		21.2	%			20.6	%			19.9	%
Other expense ratio				10.3			11.8			10.0			13.5			12.6			12.4			11.0			12.6				12.2				12.9
Statutory expense ratio				28.9	%		34.1	%		32.8	%		31.1	%		31.9	%		36.2	%		31.2	%		33.8	%			32.8	%			32.8	%
GAAP combined ratio
GAAP combined ratio				115.3	%		110.1	%		79.7	%		103.8	%		99.9	%		92.0	%		112.7	%		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 Second-Quarter Supplement

23

The Cincinnati Life Insurance Company
GAAP Statements of Income

	For the Three Months Ended June 30,												For the Six Months Ended June 30,
	2008			2007			Change			% Change			2008			2007			Change			% Change
Revenues:
Premiums earned:
Life	$	44,641,032		$	43,321,722		$	1,319,310			3.05		$	84,709,211		$	82,268,196		$	2,441,015			2.97
Accident health		1,684,116			1,605,440			78,676			4.90			3,552,283			3,364,290			187,993			5.59
Premiums ceded		(12,617,669	)		(9,552,516	)		(3,065,153	)		32.09			(25,107,066	)		(19,838,858	)		(5,268,208	)		26.55
Total premiums earned		33,707,479			35,374,646			(1,667,167	)		(4.71	)		63,154,428			65,793,628			(2,639,200	)		(4.01	)
Investment income		29,234,878			27,765,896			1,468,982			5.29			58,315,272			56,078,479			2,236,793			3.99
Realized investment gains and losses		(11,984,002	)		43,724,176			(55,708,178	)		(127.41	)		(21,786,240	)		51,868,589			(73,654,829	)		(142.00	)
Other income		624,502			954,180			(329,678	)		(34.55	)		1,366,892			2,319,751			(952,859	)		(41.08	)
Total revenues	$	51,582,857		$	107,818,898	��	$	(56,236,041	)		(52.16	)	$	101,050,352		$	176,060,447		$	(75,010,095	)		(42.60	)
Benefits & expenses:
Losses & policy benefits	$	54,332,850		$	45,215,724		$	9,117,126			20.16		$	94,218,286		$	82,105,936		$	12,112,350			14.75
Reinsurance recoveries		(15,816,298	)		(10,494,070	)		(5,322,228	)		(50.72	)		(20,174,446	)		(20,146,994	)		(27,452	)		0.14
Commissions		6,246,443			9,073,611			(2,827,168	)		(31.16	)		12,528,555			18,012,886			(5,484,331	)		(30.45	)
Other operating expenses		8,579,900			8,064,920			514,980			6.39			14,868,551			15,550,535			(681,984	)		(4.39	)
Interest expense		—			—			—			—			—			—			—			—
Taxes, licenses & fees		1,037,699			879,191			158,508			18.03			2,050,023			1,826,053			223,970			12.27
Incr deferred acq expense		(6,121,667	)		(2,392,182	)		(3,729,485	)		(155.90	)		(8,158,396	)		(6,328,619	)		(1,829,777	)		28.91
Total expenses	$	48,258,927		$	50,347,194		$	(2,088,267	)		(4.15	)	$	95,332,573		$	91,019,797		$	4,312,776			4.74
Income before income taxes	$	3,323,930		$	57,471,704		$	(54,147,774	)		(94.22	)	$	5,717,779		$	85,040,650		$	(79,322,871	)		(93.28	)
Provision for income taxes:
Current	$	3,512,384		$	732,143		$	2,780,241			379.74		$	11,184,890		$	3,432,897		$	7,751,993			225.81
Current capital gains/losses		(4,194,401	)		15,409,462			(19,603,863	)		(127.22	)		(7,605,184	)		18,280,006			(25,885,190	)		(141.60	)
Deferred		1,721,093			3,683,568			(1,962,475	)		(53.28	)		(1,862,217	)		7,742,997			(9,605,214	)		(124.05	)
Total income taxes	$	1,039,076		$	19,825,173		$	(18,786,097	)		(94.76	)	$	1,717,489		$	29,455,900		$	(27,738,411	)		(94.17	)
Net income	$	2,284,854		$	37,646,531		$	(35,361,677	)		(93.93	)	$	4,000,290		$	55,584,750		$	(51,584,460	)		(92.80	)

2008 Second-Quarter Supplement
24

The Cincinnati Life Insurance Company
Statutory Statements of Income

	For the Three Months Ended June 30,												For the Six Months Ended June 30,
	2008			2007			Change			% Change			2008			2007			Change			% Change
Net premiums written	$	44,639,536		$	42,506,686		$	2,132,850			5.02		$	86,635,808		$	82,947,704		$	3,688,104			4.45
Net investment income		29,234,878			27,770,844			1,464,034			5.27			58,315,610			56,088,420			2,227,190			3.97
Amortization of interest maintenance reserve		(261,636	)		(29,278	)		(232,358	)		(793.63	)		(530,636	)		(10,992	)		(519,644	)		(4,727.47	)
Commissions and expense allowances on reinsurance ceded		1,894,614			2,556,893			(662,279	)		(25.90	)		3,836,106			4,518,982			(682,876	)		(15.11	)
Income from fees associated with Separate Accounts		624,501			954,180			(329,679	)		(34.55	)		1,366,892			2,319,751			(952,859	)		(41.08	)
Total revenues	$	76,131,893		$	73,759,325		$	2,372,568			3.22		$	149,623,780		$	145,863,865		$	3,759,915			2.58
Death benefits and matured endowments	$	10,455,186		$	10,021,052		$	434,134			4.33		$	21,137,579		$	17,046,832		$	4,090,747			24.00
Annuity benefits		5,886,148			9,205,429			(3,319,281	)		(36.06	)		13,275,832			17,651,674			(4,375,842	)		(24.79	)
Disability benefits and benefits under accident and health contracts		689,254			599,829			89,425			14.91			1,265,120			992,416			272,704			27.48
Surrender benefits and group conversions		6,045,069			6,200,000			(154,931	)		(2.50	)		12,031,298			11,072,348			958,950			8.66
Interest and adjustments on deposit-type contract funds		2,897,486			1,697,632			1,199,854			70.68			5,647,115			4,399,276			1,247,839			28.36
Increase in aggregate reserves for life and accident and health contracts		29,971,850			27,858,492			2,113,358			7.59			52,316,326			54,986,222			(2,669,896	)		(4.86	)
Payments on supplementary contracts with life contingencies		80,543			81,492			(949	)		(1.16	)		164,924			172,013			(7,089	)		(4.12	)
Total benefit expenses	$	56,025,536		$	55,663,926		$	361,610			0.65		$	105,838,194		$	106,320,781		$	(482,587	)		(0.45	)
Commissions	$	8,065,432		$	8,898,611		$	(833,179	)		(9.36	)	$	16,213,411		$	17,732,886		$	(1,519,475	)		(8.57	)
General insurance expenses and taxes		9,825,570			9,654,999			170,571			1.77			19,334,928			19,481,284			(146,356	)		(0.75	)
Increase in loading on deferred and uncollected premiums		(1,671,688	)		(2,432,746	)		761,058			31.28			(1,922,402	)		(3,811,320	)		1,888,918			49.56
Net transfers to or (from) Separate Accounts		—			(215,913	)		215,913			—			—			(215,913	)		215,913			—
Other deductions		73			45			28			62.22			136			108			28			25.93
Total operating expenses	$	16,219,387		$	15,904,996		$	314,391			1.98		$	33,626,073		$	33,187,045		$	439,028			1.32
Federal and Foreign Income Taxes Incurred		3,467,134			949,482			2,517,652			265.16			11,126,282			3,560,686			7,565,596			212.48
Net gain from operations before realized capital gains or (losses)	$	419,836		$	1,240,921		$	(821,085	)		(66.17	)	$	(966,769	)	$	2,795,353		$	(3,762,122	)		(134.58	)
Net realized gains or (losses) net of capital gains tax		(7,756,411	)		28,916,326			(36,672,737	)		(126.82	)		(14,323,134	)		34,727,877			(49,051,011	)		(141.24	)
Net Income (loss) (Statutory)	$	(7,336,575	)	$	30,157,247		$	(37,493,822	)		(124.33	)	$	(15,289,903	)	$	37,523,230		$	(52,813,133	)		(140.75	)

* 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 Second-Quarter Supplement
25

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	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
Gross Written Premiums			$	57		$	54		$	55		$	49		$	54		$	53		$	112		$	107			$	156			$	211
Bank Owned Life Insurance (BOLI) Adjustment				—			—			—			—			—			—						—				—				—
Adjusted Gross Written Premiums			$	57		$	54		$	55		$	49		$	54		$	53		$	112		$	107			$	156			$	211
Insurance Expense			$	9		$	8		$	8		$	8		$	9		$	9		$	17		$	18			$	26			$	34
Expense Ratio				14.9	%		15.0	%		14.5	%		16.3	%		16.7	%		17.7	%		14.9	%		16.8	%			16.7	%			16.1	%
Expense Ratio based on Adjusted Gross Written Premium				14.9	%		15.0	%		14.5	%		16.3	%		16.7	%		17.7	%		14.9	%		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 Second-Quarter Supplement
26