Cincinnati Financial (CINF) 8-K Cincinnati Financial Reports Profitable 2008 Fourth Quarter and Full Year

Exhibit 99.2

Cincinnati Financial Corporation
Supplemental Financial Data
Fourth 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 Subsidiaries Consolidation — Twelve Months Ended December 31, 2008		6
CFC and Subsidiaries Consolidation — Three Months Ended December 31, 2008		7
Consolidated Balance Sheets		8
10-Year Net Income Reconciliation		9
Quarterly Net Income Reconciliation		10
CFC Subsidiaries — Selected Balance Sheet Data		11
Consolidated Property Casualty Insurance Operations (Includes Cincinnati Specialty Underwriters Insurance Company (CSU))
GAAP Statements of Income		12
Statutory Statements of Income		13
Statutory Quarterly Analysis — Consolidated		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
10-Year Property Casualty Data — Consolidated		21
6-Year Property Casualty Data — Commercial Lines		22
6-Year Property Casualty Data — Personal Lines		23
Quarterly Property Casualty Data — Consolidated		24
Quarterly Property Casualty Data — Commercial Lines		25
Quarterly Property Casualty Data — Personal Lines		26
Life Insurance Operations
GAAP Statements of Income		27
Statutory Statements of Income		28

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

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

				Year over year
	12/31/2008			change %
Revenues:
Commercial lines net written premiums	$	552			(1.9	)
Personal lines net written premiums		159			(1.4	)
Excess & surplus lines net written premiums		6		nm
Property casualty net written premiums		717			(1.0	)
Commercial lines net earned premiums		573			(4.5	)
Personal lines net earned premiums		171			(2.9	)
Excess & surplus lines net earned premiums		3		nm
Property casualty net earned premiums		747			(3.8	)
Life and accident and health net earned premiums		33			30.6
Investment income		125			(20.5	)
Realized gains on investments		110			804.7
Other income		3			(30.3	)
Total revenues		1,018			4.2
Income:
Operating income	$	92			(48.6	)
Net realized investment gains and losses		69			801.9
Net income		161			(13.9	)
Per share (diluted):
Operating income	$	0.57			(46.7	)
Net realized investment gains and losses		0.42			950.0
Net income		0.99			(10.8	)
Book value		25.75			(27.9	)
Weighted average shares — diluted		162,485,576			(3.4	)
Benefits and expenses:
Commercial lines loss and loss expenses	$	358			15.6
Personal lines loss and loss expenses		113			31.6	��
Excess & surplus lines loss and loss expenses		2		nm
Life and accident and health losses and policy benefits		27			(23.3	)
Operating expenses		283			1.1
Interest expenses		14			10.1
Total expenses		797			10.3
Net loss before income taxes		221			(13.1	)
Total income tax benefit		60			(11.2	)
Effective tax rate		27.1		nm
Ratios:
Commercial lines GAAP combined ratio		98.1	%
Personal lines GAAP combined ratio		100.0
Property casualty GAAP combined ratio		98.9
Commercial lines STAT combined ratio		99.0	%
Personal lines STAT combined ratio		102.1
Property casualty STAT combined ratio		100.2
Return on equity based upon net income		14.5	%
Return on equity based upon operating income		8.3
Balance Sheet:
Fixed maturity investments	$	5,827
Equity securities		2,896
Short-term investments		84
Other invested assets		83
Total invested assets	$	8,890
Property casualty and life loss and loss expense reserves	$	5,637
Total debt		840
Shareholders’ equity		4,182

Cincinnati Financial Corporation
Consolidated Statements of Income

	For the Three Months Ended December 31,												For the Twelve Months Ended December 31,
(Dollars in millions except per share data)	2008			2007			Change			% Change			2008			2007			Change			% Change
Revenues:
Premiums earned:
Property Casualty	$	790		$	821		$	(31	)		3.8		$	3,187		$	3,299		$	(112	)		(3.4	)
Life		48			47			1			2.6			173			171			2			1.2
Accident health		2			2			—			(1.8	)		7			7			—			3.7
Premiums ceded		(59	)		(61	)		1			(2.4	)		(232	)		(228	)		(5	)		2.0
Total premiums earned		780			809			(28	)		(3.5	)		3,136			3,250			(114	)		(3.5	)
Investment income		125			157			(32	)		(20.6	)		537			608			(71	)		(11.6	)
Realized gain on investments		109			12			97			804.7			138			382			(245	)		(64.0	)
Other income		3			5			(1	)		(30.3	)		14			20			(6	)		(28.9	)
Total revenues	$	1,018		$	983		$	35			(3.5	)	$	3,824		$	4,259		$	(435	)		(10.2	)
Benefits & expenses:
Losses & policy benefits	$	487		$	461		$	26			5.7		$	2,352		$	2,110		$	242			11.5
Reinsurance recoveries		13			(31	)		44			(141.7	)		(159	)		(147	)		(12	)		8.0
Commissions		149			164			(16	)		(9.5	)		576			624			(47	)		(7.6	)
Other operating expenses		118			90			28			30.8			411			348			63			18.1
Interest expense		14			13			1			10.0			53			51			2			3.8
Taxes, licenses & fees		15			18			(3	)		(15.7	)		68			75			(7	)		(9.7	)
Incr deferred acq expense		1			8			(8	)		(91.4	)		(17	)		(9	)		(9	)		99.0
Other expenses		—			5			(5	)		—			—			14			(14	)		—
Total expenses	$	797		$	729		$	68			9.4		$	3,284		$	3,067		$	217			7.1
Income before income taxes	$	221		$	254		$	(33	)		(13.1	)	$	540		$	1,192		$	(652	)		(54.7	)
Provision for income taxes:
Current operating income	$	52		$	56		$	(4	)		(7.2	)	$	186		$	188		$	(3	)		(1.5	)
Realized investments gains and losses		40			4			36			809.6			53			137			(84	)		(61.5	)
Deferred		(33	)		7			(39	)		(590.5	)		(127	)		12			(138	)		nm
Total income taxes	$	60		$	67		$	(8	)		(11.2	)	$	112		$	337		$	(225	)		(66.8	)
Net income	$	161		$	187		$	(26	)		(13.9	)	$	429		$	855		$	(427	)		(49.9	)
Comprehensive net income	$	(449	)	$	(397	)	$	(52	)		13.1		$	(1,375	)	$	(368	)	$	(1,008	)		274.2
Operating income	$	92		$	179		$	(87	)		(48.6	)	$	344		$	610		$	(266	)		(43.7	)
Net realized investments gains and losses	$	69		$	8		$	61			801.8		$	85		$	245		$	(160	)		(65.4	)
Net income per share:
Operating income	$	0.57		$	1.07		$	(0.50	)		(46.7	)	$	2.11		$	3.57		$	(1.46	)		(40.9	)
Net realized investments gains and losses		0.42			0.05			0.37			740.0			0.52			1.44			(0.92	)		(63.9	)
Net income per share (basic)	$	0.99		$	1.12		$	(0.13	)		(11.6	)	$	2.63		$	5.01		$	(2.38	)		(47.5	)
Operating income	$	0.57		$	1.07		$	(0.50	)		(46.7	)	$	2.10		$	3.54		$	(1.44	)		(40.7	)
Net realized investments gains and losses		0.42			0.04			0.38			950.0			0.52			1.43			(0.91	)		(63.6	)
Net income per share (diluted)	$	0.99		$	1.11		$	(0.12	)		(10.8	)	$	2.62		$	4.97		$	(2.35	)		(47.3	)
Dividends per share:
Paid	$	0.39		$	0.36		$	0.04			9.9		$	1.53		$	1.40		$	0.13			8.9
Declared	$	0.39		$	0.36		$	0.04			9.9		$	1.56		$	1.42		$	0.14			9.9
Number of shares:
Weighted avg — basic		162,393,879			167,007,116			(4,613,237	)		(2.8	)		163,150,329			170,595,204			(7,444,875	)		(4.4	)
Weighted avg — diluted		162,485,576			168,163,752			(5,678,176	)		(3.4	)		163,362,409			172,167,452			(8,805,043	)		(5.1	)

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

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

(Dollars in millions)	Total			CFC			CONSOL P&C			CLIC			CFC-I			CINFIN			C-SUPR			ELIM
Revenues:
Premiums earned:
Property Casualty	$	3,187		$	—		$	3,188		$	—		$	—		$	—		$	—		$	(1	)
Life		173			—			—			173			—			—			—			—
Accident health		7			—			—			7			—			—			—			—
Premiums ceded		(232	)		—			(178	)		(54	)		—			—			—			—
Total earned premium		3,136			—			3,010			126			—			—			—			(1	)
Investment income		537			67			350			120			—			—			—			—
Realized gain on investments		138			54			41			(90	)		—			(1	)		—			133
Other income		14			13			4			2			8			2			1			(15	)
Total revenues	$	3,824		$	134		$	3,405		$	158		$	9		$	1		$	1		$	117
Benefits & expenses:
Losses & policy benefits	$	2,352		$	—		$	2,182		$	175		$	—		$	—		$	—		$	(5	)
Reinsurance recoveries		(159	)		—			(126	)		(33	)		—			—			—			—
Commissions		576			—			552			25			—			—			—			(1	)
Other operating expenses		411			24			356			34			4			1			3			(11	)
Interest expense		53			51			1			—			3			—			—			—
Taxes, licenses & fees		68			1			62			4			—			—			—			—
Incr deferred acq expenses		(17	)		—			—			(18	)		—			—			—			—
Total expenses	$	3,284		$	76		$	3,027		$	187		$	7		$	1		$	3		$	(17	)
Income before income taxes	$	540		$	58		$	378		$	(29	)	$	2		$	—		$	(2	)	$	134
Provision for income taxes:
Current operating income	$	186		$	3		$	194		$	34		$	1		$	1		$	(1	)	$	(47	)
Capital gains/losses		53			20			18			(31	)		—			—			—			47
Deferred		(127	)		(20	)		(139	)		(13	)		—			—			—			47
Total income tax	$	113		$	3		$	73		$	(11	)	$	1		$	1		$	(1	)	$	47
Net income — current year	$	428		$	56		$	305		$	(19	)	$	1		$	(1	)	$	(1	)	$	87
Net income — prior year	$	855		$	108		$	670		$	65		$	2		$	1		$	—		$	9
Change in net income		(50.0	)%		(48.5	)%		(54.5	)%		(128.5	)%		(56.8	)%		(169.6	)%		nm

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

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

(Dollars in millions)	Total			CFC			CONSOL P&C			CLIC			CFC-I			CINFIN			C-SUPR			ELIM
Revenues:
Premiums earned:
Property Casualty	$	790		$	—		$	790		$	—		$	—		$	—		$	—		$	—
Life		48			—			—			48			—			—			—			—
Accident health		2			—			—			2			—			—			—			—
Premiums ceded		(59	)		—			(43	)		(16	)		—			—			—			—
Total earned premium		780			—			747			33			—			—			—			—
Investment income		125			11			83			31			—			—			—			(1	)
Realized gain on investments		109			195			(62	)		(23	)		—			—			—			—
Other income		3			4			1			1			2			—			—			(4	)
Total revenues	$	1,018		$	210		$	769		$	42		$	2		$	—		$	—		$	(5	)
Benefits & expenses:
Losses & policy benefits	$	487		$	—		$	462		$	27		$	—		$	—		$	—		$	(1	)
Reinsurance recoveries		13			—			13			—			—			—			—			—
Commissions		149			—			143			6			—			—			—			—
Other operating expenses		118			6			101			11			1			—			1			(3	)
Interest expense		14			13			—			—			1			—			—			—
Taxes, licenses & fees		15			—			14			1			—			—			—			—
Incr deferred acq expenses		1			—			6			(5	)		—			—			—			—
Total expenses	$	797		$	20		$	739		$	39		$	2		$	—		$	1		$	(4	)
Income before income taxes	$	221		$	190		$	30		$	3		$	—		$	(1	)	$	(1	)	$	(1	)
Provision for income taxes:
Current operating income	$	52		$	2		$	37		$	14		$	—		$	—		$	—		$	—
Capital gains/losses		40			70			(21	)		(8	)		—			—			—			—
Deferred		(33	)		(8	)		(19	)		(5	)		—			—			—			—
Total income tax	$	60		$	64		$	(4	)	$	1		$	—		$	—		$	—		$	—
Net income — current year	$	161		$	126		$	34		$	2		$	—		$	—		$	(1	)	$	—
Net income — prior year	$	187		$	10		$	174		$	1		$	—		$	—		$	—		$	1
Change in net income		(13.9	)%		nm			(80.3	)%		49.5	%		(73.7	)%		(227.3	)%		nm

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

Cincinnati Financial Corporation
Consolidated Balance Sheets

	December 31,			December 31,
	2008			2007
(Dollars in millions except per share data)	(unaudited)
Assets
Investments
Fixed maturities, at fair value (amortized cost: 2008—$6,058; 2007—$5,783)	$	5,827		$	5,848
(includes securities pledged to creditors: 2008—$0; 2007—$745)
Equity securities, at fair value (cost: 2008—$2,077; 2007—$2,975)		2,896			6,249
Short-term investments, at fair value (amortized cost: 2008—$84; 2007—$101)		84			101
Other invested assets		83			63
Total investments		8,890			12,261
Cash and cash equivalents		1,009			226
Securities lending collateral invested		—			760
Investment income receivable		98			124
Finance receivable		71			92
Premiums receivable		1,059			1,107
Reinsurance receivable		759			754
Prepaid reinsurance premiums		15			13
Deferred policy acquisition costs		509			461
Deferred income tax		126			—
Land, building and equipment, net, for company use (accumulated depreciation: 2008—$297; 2007—$276)		236			239
Other assets		49			72
Separate accounts		548			528
Total assets	$	13,369		$	16,637
Liabilities
Insurance reserves
Losses and loss expense	$	4,086		$	3,967
Life policy reserves		1,551			1,478
Unearned premiums		1,544			1,564
Securities lending payable		—			760
Other liabilities		618			574
Deferred income tax		—			977
Notes payable		49			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		548			528
Total liabilities		9,187			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		1,069			1,049
Retained Earnings		3,579			3,404
Accumulated other comprehensive income		347			2,151
Treasury stock at cost (2008—34 million shares, 2007—30 million shares)		(1,206	)		(1,068	)
Total shareholders’ equity		4,182			5,929
Total liabilities and shareholders’ equity	$	13,369		$	16,637

Cincinnati Financial Corporation
10-Year Net Income Reconciliation

	Years ended December 31,
(Dollars in millions except per share data)	2008			2007			2006			2005			2004			2003			2002			2001			2000			1999
Net income	$	429		$	855		$	930		$	602		$	584		$	374		$	238		$	193		$	118		$	255
One-time item		—			—			—			—			—			15			—			—			(25	)		—
Net income before one-time item		429			855			930			602			584			359			238			193			143			255
Net realized investment gains and losses		85			245			434			40			60			(27	)		(62	)		(17	)		(2	)		—
Operating income before one-time item		344			610			496			562			524			386			300			210			145			255
Less catastrophe losses		(132	)		(17	)		(113	)		(82	)		(96	)		(63	)		(57	)		(42	)		(33	)		(24	)
Operating income before catastrophe losses and one-time item	$	476		$	627		$	609		$	644		$	620		$	449		$	357		$	252		$	178		$	279
Diluted per share data																			��
Net income	$	2.62		$	4.97		$	5.30		$	3.40		$	3.28		$	2.10		$	1.32		$	1.07		$	0.67		$	1.37
One-time item		—			—			—			—			—			0.09			—			—			(0.14	)		—
Net income before one-time item		2.62			4.97			5.30			3.40			3.28			2.01			1.32			1.07			0.81			1.37
Net realized investment gains and losses		0.52			1.43			2.48			0.23			0.34			(0.15	)		(0.35	)		(0.10	)		(0.01	)		—
Operating income before one-time item		2.10			3.54			2.82			3.17			2.94			2.16			1.67			1.17			0.82			1.37
Less catastrophe losses		(0.81	)		(0.10	)		(0.65	)		(0.46	)		(0.54	)		(0.35	)		(0.31	)		(0.23	)		(0.18	)		(0.13	)
Operating income before catastrophe losses and one-time item	$	2.91		$	3.64		$	3.47		$	3.63		$	3.48		$	2.51		$	1.98		$	1.40		$	1.00		$	1.50
Return on equity
Return on average equity		8.5	%		13.4	%		14.4	%		9.8	%		9.4	%		6.3	%		4.1	%		3.2	%		2.1	%		4.6	%
One-time item		—			—			—			—			—			(0.3	)		—			—			0.4			—
Return on average equity before one-time item		8.5	%		13.4	%		14.4	%		9.8	%		9.4	%		6.0	%		4.1	%		3.2	%		2.5	%		4.6	%
Return on equity based on comprehensive income
ROE based on comprehensive income		(27.2	)%		(5.8	)%		16.4	%		1.6	%		4.6	%		13.8	%		(4.0	)%		2.5	%		13.1	%		1.9	%
One-time item		—			—			—			—			—			(0.3	)		—			—			0.4			—
ROE based on comprehensive income before one-time item		(27.2	)%		(5.8	)%		16.4	%		1.6	%		4.6	%		13.5	%		(4.0	)%		2.5	%		13.5	%		1.9	%
Value creation ratio
Book value per share growth		(27.9	)%		(9.3	)%		12.9	%		(2.0	)%		1.4	%		11.7	%		(6.5	)%		(0.5	)%		11.4	%		-0.8	%
Shareholder dividend as a percentage of beginning book value		4.4			3.6			3.8			3.4			3.0			2.9			2.4			2.2			2.3			2.0
Value creation ratio		(23.5	)%		(5.7	)%		16.7	%		1.4	%		4.4	%		14.5	%		(4.1	)%		1.7	%		13.6	%		1.3	%
Investment income
Investment income, net of expenses	$	537		$	608		$	570		$	526		$	492		$	465		$	445		$	421		$	415		$	387
BOLI		—			—			—			—			—			—			—			—			(5	)		—
Investment income before BOLI	$	537		$	608		$	570		$	526		$	492		$	465		$	445		$	421		$	410		$	387

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

Cincinnati Financial Corporation
Quarterly Net Income Reconciliation

	Three months ended																						Six months ended						Nine months ended						Twelve months ended
(Dollars 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)	$	161	$	247		$	63		$	(42	)	$	187	$	124		$	351		$	194		$	21		$	545		$	268		$	669		$	429		$	855
Net realized investment gains and losses		69		173			(6	)		(151	)		8		10			187			41			(157	)		228			16			238			85			245
Operating income		92		74			69			109			179		114			164			153			178			317			252			431			344			610
Less catastrophe losses		10		(41	)		(74	)		(28	)		1		(9	)		(7	)		(2	)		(101	)		(9	)		(142	)		(18	)		(132	)		(17	)
Operating income before catastrophe losses	$	82	$	115		$	143		$	137		$	178	$	123		$	171		$	155		$	279		$	326		$	394		$	449		$	476		$	627
Diluted per share data
Net income (loss)	$	0.99	$	1.50		$	0.38		$	(0.26	)	$	1.11	$	0.72		$	2.02		$	1.11		$	0.13		$	3.13		$	1.64		$	3.86		$	2.62		$	4.97
Net realized investment gains and losses		0.42		1.05			(0.04	)		(0.92	)		0.04		0.06			1.08			0.23			(0.95	)		1.31			0.10			1.37			0.52			1.43
Operating income		0.57		0.45			0.42			0.66			1.07		0.66			0.94			0.88			1.08			1.82			1.54			2.49			2.10			3.54
Less catastrophe losses		0.06		(0.25	)		(0.45	)		(0.17	)		0.01		(0.05	)		(0.04	)		(0.01	)		(0.62	)		(0.05	)		(0.87	)		(0.10	)		(0.81	)		(0.10	)
Operating income before catastrophe losses	$	0.51	$	0.70		$	0.87		$	0.83		$	1.06	$	0.71		$	0.98		$	0.89		$	1.70		$	1.87		$	2.41		$	2.59		$	2.91		$	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.

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 (fair value)	$	4,309		$	4,183		$	4,304		$	4,351	$	4,295	$	4,366	$	4,367		$	4,362
Equities (fair value)		2,432			3,210			3,537			4,226		4,595		5,201		5,411			5,472
Short-term investments (fair value)		19			162			—			51		50		19		72			3
Fixed maturities — pretax net unrealized gain (loss)		(108	)		(132	)		(33	)		39		58		23		(30	)		44
Equities — pretax net unrealized gain (loss)		627			1,012			1,227			1,831		2,077		2,657		2,917			3,017
Loss and loss expense reserves — STAT		3,494			3,507			3,534			3,448		3,398		3,461		3,374			3,373
Equity GAAP		3,667			3,947			4,011			4,498		4,784		5,282		5,404			5,272
Surplus — STAT		3,360			3,687			3,650			4,027		4,307		4,782		4,937			4,741
The Cincinnati Life Insurance Company
Fixed maturities (fair value)	$	1,467		$	1,483		$	1,551		$	1,534	$	1,465	$	1,475	$	1,415		$	1,384
Equities (fair value)		122			200			265			307		371		459		478			539
Short-term investments (fair value)		—			—			—			—		51		18		29			16
Fixed maturities — pretax net unrealized gain (loss)		(115	)		(79	)		(35	)		—		6		4		(4	)		20
Equities — pretax net unrealized gain (loss)		(7	)		61			92			127		162		225		254			305
Equity — GAAP		471			530			617			661		685		724		730			739
Surplus — STAT		290			371			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 (fair value)	$	4,296		$	4,258		$	4,160		$	4,189	$	4,022	$	4,049	$	3,981		$	3,925
Equities (fair value)		5,494			5,134			4,827			4,946		4,851		4,785		4,821			4,785
Short-term investments (fair value)		92			—			—			126		74		—		—			—
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 (fair value)	$	1,381		$	1,399		$	1,344		$	1,338	$	1,331	$	1,340	$	1,294		$	1,273
Equities (fair value)		532			494			458			470		457		457		454			415
Short-term investments (fair value)		3			—			—			20		—		—		—			—
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

Consolidated Cincinnati Insurance Companies
GAAP Statements of Income

	For the Three Months Ended December 31,												For the Twelve Months Ended December 31,
(Dollars in millions)	2008			2007			Change			% Change			2008			2007			Change			% Change
Premiums earned:
Property casualty	$	790		$	821		$	(31	)		(3.8	)	$	3,188		$	3,299		$	(111	)		(3.4	)
Premiums ceded		(43	)		(44	)		1			(3.0	)		(178	)		(175	)		(3	)		1.9
Total premiums earned		747			777			(30	)		(3.8	)		3,010			3,125			(115	)		(3.7	)
Investment income		83			101			(18	)		(17.8	)		350			393			(43	)		(10.9	)
Realized gain on investments		(62	)		30			(92	)		308.4			41			232			(191	)		(82.2	)
Other income		1			1			—			(28.9	)		4			5			(1	)		(17.4	)
Total revenues	$	769		$	909		$	(140	)		(15.4	)	$	3,405		$	3,754		$	(349	)		(9.3	)
Benefits & expenses:
Losses & policy benefits	$	462		$	416		$	46			11.1		$	2,182		$	1,939		$	243			12.5
Reinsurance recoveries		13			(21	)		33			(161.6	)		(126	)		(107	)		(19	)		17.6
Commissions		143			159			(16	)		(10.1	)		552			598			(47	)		(7.8	)
Other operating expenses		101			77			24			30.7			356			303			53			17.7
Interest expense		—			—			—			—			1			—			1			—
Taxes, licenses & fees		14			17			(3	)		(18.0	)		62			70			(8	)		(11.0	)
Incr deferred acq expense		6			11			(5	)		(43.7	)		—			3			(3	)		(97.3	)
Other expenses		—			5			(5	)		—			—			14			(14	)		—
Total expenses	$	739		$	665		$	74			11.1		$	3,027		$	2,820		$	207			7.3
Income before income taxes	$	30		$	244		$	(214	)		(87.6	)	$	378		$	934		$	(556	)		(59.5	)
Provision for income taxes:
Current operating income	$	37		$	48		$	(11	)		(23.8	)	$	194		$	185		$	10			5.2
Current realized investments gains and losses		(21	)		11			(32	)		(298.6	)		18			83			(64	)		(77.9	)
Deferred		(19	)		11			(31	)		(266.5	)		(139	)		(3	)		(136	)		nm
Total income taxes	$	(4	)	$	70		$	(74	)		(105.5	)	$	73		$	264		$	(191	)		(72.3	)
Net income	$	34		$	174		$	(140	)		(80.3	)	$	305		$	670		$	(365	)		(54.5	)

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

Consolidated Cincinnati Insurance Companies
Statutory Statements of Income

	For the Three Months Ended December 31,												For the Twelve Months Ended December 31,
(Dollars in millions)	2008			2007			Change			% Change			2008			2007			Change			% Change
Underwriting income
Net premiums written	$	717		$	724		$	(7	)		(1.0	)	$	3,010		$	3,117		$	(107	)		(3.4	)
Unearned premiums increase		(30	)		(53	)		23			(43.0	)		(1	)		(8	)		8			(92.5	)
Earned premiums		747			777			(30	)		(3.8	)		3,010			3,125			(115	)		(3.7	)
Losses incurred	$	383		$	292		$	91			31.3		$	1,736		$	1,458		$	278			19.1
Allocated loss expenses incurred		26			63			(36	)		(57.9	)		115			196			(81	)		(41.2	)
Unallocated loss expenses incurred		65			41			24			(59.3	)		205			178			27			15.2
Other underwriting expenses incurred		259			261			(1	)		(0.6	)		956			973			(17	)		(1.7	)
Workers compensation dividend incurred		4			7			(3	)		(41.6	)		9			15			(6	)		(42.2	)
Total underwriting deductions	$	738		$	663		$	75			11.3		$	3,021		$	2,820		$	201			7.1
Net underwriting gain	$	9		$	114		$	(105	)		(91.8	)	$	(11	)	$	305		$	(316	)		(103.5	)
Investment income
Gross investment income earned	$	84		$	100		$	(16	)		(15.8	)	$	355		$	397		$	(42	)		(10.6	)
Net investment income earned		83			100			(18	)		(17.5	)		349			392			(43	)		(10.9	)
Net realized capital gains		(31	)		23			(53	)		(236.6	)		46			158			(112	)		(71.0	)
Net investment gains (excl. subs)	$	52		$	123		$	(71	)		(57.8	)	$	395		$	550		$	(155	)		(28.1	)
Dividend from subsidiary		—			—			—			—			—			—			—			—
Net investment gains	$	52		$	123		$	(71	)		(57.8	)	$	395		$	550		$	(155	)		(28.1	)
Other income	$	1		$	1		$	(1	)		(50.4	)	$	2		$	4		$	(2	)		(43.9	)
Net income before federal income taxes	$	62		$	238		$	(176	)		(74.0	)	$	387		$	859		$	(472	)		(55.0	)
Federal and foreign income taxes incurred	$	32		$	55		$	(23	)		(42.0	)	$	200		$	187		$	13			6.9
Net income (statutory)	$	30		$	183		$	(153	)		(83.7	)	$	187		$	672		$	(485	)		(72.2	)

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

Consolidated Cincinnati Insurance Companies — Consolidated
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	$	717		$	727		$	790		$	776		$	724		$	736		$	810		$	846		$	1,566		$	1,656		$	2,292		$	2,392		$	3,010		$	3,117
Net premiums earned	$	747		$	751		$	761		$	751		$	777		$	777		$	787		$	785		$	1,512		$	1,571		$	2,263		$	2,348		$	3,010		$	3,125
Losses paid	$	383		$	467		$	396		$	382		$	375		$	363		$	379		$	365		$	778		$	744		$	1,245		$	1,107		$	1,629		$	1,482
Loss reserve change		(1	)		(11	)		83			35			(84	)		69			(15	)		6			119			(10	)		108			59			107			(24	)
Total losses incurred	$	382		$	456		$	479		$	417		$	291		$	432		$	364		$	371		$	897		$	734		$	1,353		$	1,166		$	1,736		$	1,458
Allocated loss expense paid		39			35			32			25			36			30			34			31			58			65			93			94			131			131
Allocated loss expense reserve change		(12	)		(16	)		1			12			27			14			16			8			12			24			(4	)		39			(16	)		65
Total allocated loss expense incurred	$	27		$	19		$	33		$	37		$	63		$	44		$	50		$	39		$	70		$	89		$	89		$	133		$	115		$	196
Unallocated loss expense paid		62			47			43			43			47			44			41			46			86			87			133			131			195			178
Unallocated loss expense reserve change		3			1			3			3			(6	)		4			1			2			6			3			7			7			10			—
Total unallocated loss expense incurred	$	65		$	48		$	46		$	46		$	41		$	48		$	42		$	48		$	92		$	90		$	140		$	138		$	205		$	178
Underwriting expenses incurred		264			241			223			238			270			230			241			248			460			490			701			720			971			989
Underwriting profit (loss)	$	9		$	(13	)	$	(20	)	$	13		$	112		$	23		$	90		$	79		$	(7	)	$	168		$	(20	)	$	191		$	(17	)	$	304
Ratio Data
Loss ratio		51.2	%		60.8	%		63.0	%		55.6	%		37.5	%		55.6	%		46.3	%		47.3	%		59.3	%		46.8	%		59.8	%		49.7	%		57.7	%		46.7	%
Allocated loss expense ratio		3.5			2.5			4.3			5.0			8.1			5.7			6.3			5.0			4.6			5.7			3.9			5.7			3.8			6.3
Unallocated loss expense ratio		8.7			6.4			6.1			6.1			5.3			6.1			5.3			6.1			6.1			5.7			6.2			5.9			6.8			5.7
Net underwriting expense ratio		36.8			33.1			28.1			30.6			36.9			31.3			29.8			29.3			29.3			29.5			30.6			30.0			32.1			31.6
Statutory combined ratio		100.2	%		102.8	%		101.5	%		97.3	%		87.8	%		98.7	%		87.7	%		87.7	%		99.3	%		87.7	%		100.5	%		91.3	%		100.4	%		90.3	%
Statutory combined ratio excluding catastrophes		102.3	%		94.4	%		86.6	%		91.5	%		88.1	%		97.0	%		86.3	%		87.3	%		89.0	%		86.8	%		90.8	%		90.1	%		93.6	%		89.5	%
Loss Detail
New losses greater than $4,000,000	$	10		$	10		$	18		$	8		$	—		$	4		$	—		$	—		$	26		$	—		$	36		$	4		$	46		$	4
New losses $2,000,000-$4,000,000		19			17			25			14			36			50			17			22			39			39			56			88			75			125
New losses $1,000,000-$2,000,000		22			33			17			22			23			27			26			28			39			54			72			81			94			105
New losses $750,000-$1,000,000		12			14			13			9			13			9			9			10			21			19			35			28			48			41
New losses $500,000-$750,000		16			16			13			11			16			14			14			14			24			28			40			42			56			58
New losses $250,000-$500,000		35			33			27			29			29			24			22			25			57			47			90			70			124			99
Case reserve development above $250,000		82			59			54			49			69			50			49			53			103			102			162			152			245			221
Large losses subtotal	$	196		$	182		$	167		$	142		$	186		$	178		$	137		$	152		$	309		$	289		$	491		$	465		$	688		$	653
IBNR incurred		(16	)		(6	)		(6	)		6			(42	)		—			7			8			—			15			(6	)		15			(22	)		(28	)
Catastrophe losses incurred		(16	)		63			113			43			(2	)		13			11			3			156			15			219			28			203			26
Remaining incurred		218			217			205			226			149			241			209			208			432			415			649			658			867			807
Total losses incurred	$	382		$	456		$	479		$	417		$	291		$	432		$	364		$	371		$	897		$	734		$	1,353		$	1,166		$	1,736		$	1,458
Loss Ratio
New losses greater than $4,000,000		1.3	%		1.3	%		2.4	%		1.1	%		—	%		0.6	%		—	%		—	%		1.7	%		—	%		1.6	%		0.2	%		1.5	%		0.1	%
New losses $2,000,000-$4,000,000		2.5			2.2			3.3			1.9			4.7			6.4			2.1			2.8			2.6			2.5			2.5			3.8			2.5			4.0
New losses $1,000,000-$2,000,000		2.9			4.4			2.2			2.9			3.0			3.4			3.3			3.6			2.6			3.4			3.0			3.4			3.1			3.3
New losses $750,000-$1,000,000		1.6			1.9			1.7			1.1			1.7			1.2			1.2			1.3			1.4			1.2			1.6			1.2			1.6			1.3
New losses $500,000-$750,000		2.2			2.1			1.7			1.5			2.1			1.8			1.8			1.8			1.6			1.8			1.8			1.8			1.9			1.9
New losses $250,000-$500,000		4.6			4.4			3.6			3.9			3.7			3.1			2.8			3.1			3.7			3.0			4.0			3.0			4.1			3.2
Case reserve development above $250,000		11.0			7.9			7.1			6.5			8.7			6.4			6.2			6.7			6.9			6.5			7.2			6.4			8.1			7.1
Large losses subtotal		26.1	%		24.2	%		22.0	%		18.9	%		23.9	%		22.9	%		17.4	%		19.3	%		20.5	%		18.4	%		21.7	%		19.8	%		22.8	%		20.9	%
IBNR incurred		(2.1	)		(0.8	)		(0.9	)		0.8			(5.5	)		—			0.9			1.0			—			0.9			(0.3	)		0.6			(0.7	)		(0.9	)
Total catastrophe losses incurred		(2.1	)		8.4			14.9			5.7			(0.2	)		1.7			1.4			0.4			10.3			0.9			9.7			1.2			6.8			0.8
Remaining incurred		29.3			29.0			27.0			30.2			19.3			31.0			26.6			26.6			28.5			26.6			28.7			28.1			28.8			25.9
Total loss ratio		51.2	%		60.8	%		63.0	%		55.6	%		37.5	%		55.6	%		46.3	%		47.3	%		59.3	%		46.8	%		59.8	%		49.7	%		57.7	%		46.7	%
Loss Claim Count
New losses greater than $4,000,000		2			2			5			2			—			1			—			—			7			—			9			1			11			1
New losses $2,000,000-$4,000,000		7			6			8			5			12			16			5			7			13			12			19			28			26			40
New losses $1,000,000-$2,000,000		17			27			13			19			18			21			21			21			32			42			59			63			76			81
New losses $750,000-$1,000,000		14			17			15			10			16			11			11			12			25			23			42			34			56			50
New losses $500,000-$750,000		28			28			23			21			27			25			26			24			44			50			72			75			100			102
New losses $250,000-$500,000		105			100			84			87			88			75			67			72			171			139			271			214			376			302
Case reserve development above $250,000		146			102			84			81			112			93			82			93			165			175			267			268			413			380
Large losses total		319			282			232			225			273			242			212			229			457			441			739			683			1,058			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.

Consolidated Cincinnati Insurance Companies — 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	$	552		$	538		$	597		$	625		$	562		$	544		$	613		$	693		$	1,222		$	1,306		$	1,759		$	1,851		$	2,311		$	2,413
Net premiums earned	$	573		$	582		$	586		$	574		$	601		$	600		$	606		$	604		$	1,161		$	1,210		$	1,743		$	1,810		$	2,316		$	2,411
Losses paid	$	262		$	326		$	280		$	266		$	272		$	253		$	270		$	259		$	546		$	530		$	871		$	783		$	1,133		$	1,054
Loss reserve change		26			(3	)		67			32			(53	)		66			(12	)		23			100			11			97			77			123			23
Total losses incurred	$	288		$	323		$	347		$	298		$	219		$	319		$	258		$	282		$	646		$	541		$	968		$	860		$	1,256		$	1,077
Allocated loss expense paid		35			31			28			22			33			26			30			28			50			58			82			84			116			117
Allocated loss expense reserve change		(13	)		(15	)		1			12			27			16			16			8			13			24			(3	)		40			(16	)		67
Total allocated loss expense incurred	$	22		$	16		$	29		$	34		$	60		$	42		$	46		$	36		$	63		$	82		$	79		$	124		$	100		$	184
Unallocated loss expense paid		42			34			31			30			34			31			30			33			61			63			95			94			137			128
Unallocated loss expense reserve change		7			(1	)		1			3			(3	)		4			1			3			4			4			4			8			10			5
Total unallocated loss expense incurred	$	49		$	33		$	32		$	33		$	31		$	35		$	31		$	36		$	65		$	67		$	99		$	102		$	147		$	133
Underwriting expenses incurred		204			180			166			186			215			170			179			193			352			371			532			541			742			756
Underwriting profit (loss)	$	10		$	30		$	12		$	23		$	76		$	34		$	92		$	57		$	35		$	149		$	65		$	183		$	71		$	261
Ratio Data
Loss ratio		50.3	%		55.4	%		59.2	%		52.0	%		36.4	%		53.2	%		42.6	%		46.8	%		55.6	%		44.7	%		55.5	%		47.5	%		54.2	%		44.7	%
Allocated loss expense ratio		3.8			2.7			5.0			5.9			9.9			7.0			7.6			5.9			5.4			6.8			4.5			6.8			4.3			7.6
Unallocated loss expense ratio		8.4			5.7			5.5			5.7			5.2			5.7			5.1			5.9			5.7			5.5			5.7			5.6			6.4			5.5
Net underwriting expense ratio		36.5			33.5			27.8			29.7			38.2			31.3			29.1			27.9			28.8			28.4			30.2			29.3			31.7			31.4
Statutory combined ratio		99.0	%		97.3	%		97.5	%		93.3	%		89.7	%		97.2	%		84.4	%		86.5	%		95.5	%		85.4	%		95.9	%		89.2	%		96.6	%		89.2	%
Statutory combined ratio excluding catastrophes		100.5	%		93.3	%		86.2	%		89.4	%		89.7	%		97.1	%		83.6	%		84.7	%		87.8	%		84.1	%		89.5	%		88.3	%		92.2	%		88.5	%
Loss Detail
New losses greater than $4,000,000	$	10		$	5		$	18		$	8		$	—		$	—		$	—		$	—		$	26		$	—		$	31		$	—		$	41		$	—
New losses $2,000,000-$4,000,000		19			17			25			14			34			47			13			22			40			35			56			81			75			116
New losses $1,000,000-$2,000,000		18			26			15			18			19			25			23			23			33			46			60			71			78			90
New losses $750,000-$1,000,000		10			12			11			8			11			8			6			9			19			15			31			23			41			34
New losses $500,000-$750,000		11			14			12			9			14			11			12			12			20			24			34			34			45			49
New losses $250,000-$500,000		28			25			22			23			21			18			16			18			45			34			70			53			98			73
Case reserve development above $250,000		76			57			51			44			60			45			46			49			96			95			153			140			229			200
Large losses subtotal	$	172		$	156		$	154		$	124		$	159		$	154		$	116		$	133		$	279		$	249		$	435		$	402		$	607		$	562
IBNR incurred		(12	)		(7	)		(8	)		6			(29	)		—			6			7			(2	)		14			(10	)		16			(22	)		(12	)
Catastrophe losses incurred		(9	)		23			66			22			—			1			5			10			89			16			112			17			103			16
Remaining incurred		137			151			135			146			89			164			131			132			280			262			431			425			568			511
Total losses incurred	$	288		$	323		$	347		$	298		$	219		$	319		$	258		$	282		$	646		$	541		$	968		$	860		$	1,256		$	1,077
Loss Ratio
New losses greater than $4,000,000		1.8	%		0.9	%		3.1	%		1.4	%		—	%		0.1	%		—	%		—	%		2.3	%		—	%		1.8	%		0.1	%		1.8	%		—	%
New losses $2,000,000-$4,000,000		3.2			2.9			4.3			2.5			5.7			7.8			2.1			3.6			3.4			2.9			3.2			4.5			3.2			4.7
New losses $1,000,000-$2,000,000		3.1			4.5			2.5			3.2			3.2			4.2			3.8			3.8			2.9			3.8			3.4			3.9			3.4			3.7
New losses $750,000-$1,000,000		1.7			2.1			1.9			1.3			1.8			1.3			1.0			1.5			1.6			1.2			1.8			1.3			1.8			1.4
New losses $500,000-$750,000		2.0			2.3			2.0			1.5			2.2			1.8			2.0			2.0			1.7			2.0			1.9			1.9			2.0			2.0
New losses $250,000-$500,000		4.9			4.3			3.8			4.0			3.4			3.0			2.6			2.8			3.9			2.7			4.0			2.9			4.2			2.9
Case reserve development above $250,000		13.2			9.8			8.7			7.8			10.1			7.5			7.6			8.1			8.3			7.8			8.8			7.6			9.9			8.3
Large losses subtotal		29.9	%		26.8	%		26.3	%		21.7	%		26.4	%		25.7	%		19.1	%		21.8	%		24.0	%		20.4	%		24.9	%		22.2	%		26.3	%		23.1	%
IBNR incurred		(2.1	)		(1.3	)		(1.4	)		1.0			(4.8	)		—			1.0			1.2			(0.2	)		1.1			(0.6	)		0.8			(0.9	)		(0.5	)
Total catastrophe losses incurred		(1.5	)		4.0			11.3			3.9			—			0.1			0.8			1.8			7.7			1.3			6.4			0.9			4.5			0.7
Remaining incurred		24.0			25.9			23.0			25.4			14.8			27.3			21.7			22.0			24.2			21.9			24.8			23.6			24.3			21.4
Total loss ratio		50.3	%		55.4	%		59.2	%		52.0	%		36.4	%		53.1	%		42.6	%		46.8	%		55.7	%		44.7	%		55.5	%		47.5	%		54.2	%		44.7	%
Loss Claim Count
New losses greater than $4,000,000		2			1			4			2			—			1			—			—			6			—			7			1			9			1
New losses $2,000,000-$4,000,000		7			6			9			5			11			14			4			7			14			11			20			25			27			36
New losses $1,000,000-$2,000,000		14			21			12			16			14			20			19			17			28			36			49			56			63			70
New losses $750,000-$1,000,000		11			15			13			9			13			9			7			11			22			18			37			27			48			40
New losses $500,000-$750,000		19			24			21			16			23			20			21			20			37			41			61			61			80			84
New losses $250,000-$500,000		85			74			67			68			64			57			49			57			135			106			209			163			294			227
Case reserve development above $250,000		129			95			76			74			96			80			75			85			150			160			245			240			374			336
Large losses total		267			236			202			190			221			201			175			197			392			372			628			573			895			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.

Consolidated Cincinnati Insurance Companies — 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	$	160		$	184		$	191		$	150		$	162		$	192		$	197		$	153		$	341		$	350		$	525		$	542		$	685		$	704
Net premiums earned	$	171		$	167		$	174		$	177		$	176		$	177		$	180		$	181		$	351		$	361		$	518		$	538		$	689		$	714
Losses paid	$	123		$	141		$	116		$	116		$	103		$	110		$	110		$	105		$	232		$	214		$	373		$	324		$	496		$	426
Loss reserve change		(31	)		(8	)		16			3			(30	)		3			(4	)		(17	)		19			(20	)		11			(17	)		(20	)		(47	)
Total losses incurred	$	92		$	133		$	132		$	119		$	73		$	113		$	106		$	88		$	251		$	194		$	384		$	307		$	476		$	379
Allocated loss expense paid		4			4			4			3			4			3			3			4			7			7			11			10			15			14
Allocated loss expense reserve change		1			(1	)		(1	)		—			(1	)		(1	)		—			—			—			—			(1	)		(1	)		(1	)		(2	)
Total allocated loss expense incurred	$	5		$	3		$	3		$	3		$	3		$	2		$	3		$	4		$	7		$	7		$	10		$	9		$	14		$	12
Unallocated loss expense paid		19			13			13			13			12			13			11			13			25			24			38			38			57			50
Unallocated loss expense reserve change		(3	)		1			1			1			(3	)		—			—			(1	)		2			(1	)		3			(2	)		1			(3	)
Total unallocated loss expense incurred	$	16		$	14		$	14		$	14		$	9		$	13		$	11		$	12		$	27		$	23		$	41		$	36		$	58		$	47
Underwriting expenses incurred		58			56			55			51			55			60			63			56			106			118			162			178			224			233
Underwriting profit (loss)	$	—		$	(39	)	$	(30	)	$	(10	)	$	36		$	(11	)	$	(3	)	$	21		$	(40	)	$	19		$	(79	)	$	8		$	(83	)	$	43
Ratio Data
Loss ratio		53.6	%		79.7	%		75.6	%		67.4	%		41.3	%		63.8	%		58.6	%		48.9	%		71.5	%		53.8	%		74.1	%		57.1	%		69.0	%		53.2	%
Allocated loss expense ratio		2.7			1.8			1.9			1.9			1.8			1.4			1.9			1.8			1.9			1.9			1.9			1.7			2.1			1.7
Unallocated loss expense ratio		9.6			8.7			7.9			7.4			5.5			7.3			6.2			6.6			7.6			6.3			8.0			6.7			8.3			6.4
Net underwriting expense ratio		36.2			30.4			28.9			34.1			32.8			31.1			31.9			36.2			31.2			33.8			30.9			32.8			32.2			32.8
Statutory combined ratio		102.1	%		120.6	%		114.3	%		110.8	%		81.4	%		103.6	%		98.6	%		93.5	%		112.2	%		95.8	%		114.9	%		98.3	%		111.6	%		94.1	%
Statutory combined ratio excluding catastrophes		106.2	%		96.8	%		87.3	%		99.2	%		82.4	%		96.6	%		95.1	%		97.6	%		92.9	%		96.1	%		94.2	%		96.2	%		97.1	%		92.8	%
Loss Detail
New losses greater than $4,000,000	$	—		$	5		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	5		$	—		$	5		$	—
New losses $2,000,000-$4,000,000		—			—			—			—			2			7			4			—			—			4			—			11			—			13
New losses $1,000,000-$2,000,000		4			6			2			4			5			1			3			5			5			8			12			10			16			14
New losses $750,000-$1,000,000		3			2			2			1			2			1			3			1			3			4			4			6			7			7
New losses $500,000-$750,000		5			2			1			3			2			3			3			3			4			6			6			8			11			11
New losses $250,000-$500,000		7			8			5			6			8			6			6			5			12			11			20			17			26			25
Case reserve development above $250,000		6			2			3			4			8			5			2			4			7			6			9			12			16			19
Large losses subtotal	$	25		$	25		$	13		$	18		$	27		$	23		$	21		$	18		$	31		$	39		$	56		$	64		$	81		$	89
IBNR incurred		(4	)		2			2			—			(14	)		—			1			—			2			1			4			—			—			(13	)
Catastrophe losses incurred		(7	)		40			47			21			(2	)		12			6			(7	)		67			(1	)		107			11			100			10
Remaining incurred		78			66			70			80			62			78			78			77			151			155			217			232			295			293
Total losses incurred	$	92		$	133		$	132		$	119		$	73		$	113		$	106		$	88		$	251		$	194		$	384		$	307		$	476		$	379
Loss Ratio
New losses greater than $4,000,000		—	%		3.0	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%		1.0	%		0.1	%		0.7	%		—	%
New losses $2,000,000-$4,000,000		—			—			—			—			1.0			4.0			2.2			—			—			1.1			—			2.1			—			1.8
New losses $1,000,000-$2,000,000		2.4			3.8			1.1			2.1			2.8			0.8			1.7			3.0			1.6			2.3			2.3			1.8			2.3			2.0
New losses $750,000-$1,000,000		1.5			1.0			1.1			0.4			1.1			0.9			1.7			0.7			0.8			1.1			0.8			1.1			1.0			1.0
New losses $500,000-$750,000		2.9			1.3			0.7			1.5			1.1			1.6			1.7			1.9			1.1			1.8			1.2			1.5			1.6			1.5
New losses $250,000-$500,000		3.9			4.8			3.0			3.6			4.5			3.2			3.3			3.0			3.3			3.1			3.8			3.1			3.8			3.6
Case reserve development above $250,000		3.8			1.4			1.5			2.5			4.4			2.7			1.2			2.2			1.9			1.8			1.7			2.1			2.3			2.7
Large losses subtotal		14.5	%		15.3	%		7.5	%		10.0	%		15.1	%		13.2	%		11.8	%		10.6	%		8.7	%		11.2	%		10.8	%		11.8	%		11.7	%		12.6	%
IBNR incurred		(2.3	)		1.0			0.9			0.2			(7.8	)		—			0.4			—			0.6			0.2			0.7			0.1			—			(1.8	)
Total catastrophe losses incurred		(4.1	)		23.8			27.0			11.6			(1.0	)		7.0			3.5			(4.1	)		19.3			(0.3	)		20.7			2.1			14.5			1.3
Remaining incurred		45.5			39.6			40.2			45.6			35.0			43.6			42.9			42.4			42.9			42.7			41.9			43.1			42.8			41.1
Total loss ratio		53.6	%		79.7	%		75.6	%		67.4	%		41.3	%		63.8	%		58.6	%		48.9	%		71.5	%		53.8	%		74.1	%		57.1	%		69.0	%		53.2	%
Loss Claim Count
New losses greater than $4,000,000		—			1			—			—			—			—			—			—			—			—			1			—			—			—
New losses $2,000,000-$4,000,000		—			—			—			—			1			2			1			—			—			1			—			3			3			4
New losses $1,000,000-$2,000,000		3			6			1			3			4			1			2			4			4			6			10			7			7			11
New losses $750,000-$1,000,000		3			2			2			1			3			2			4			1			3			5			5			7			14			10
New losses $500,000-$750,000		9			4			2			5			4			5			5			4			7			9			11			14			51			18
New losses $250,000-$500,000		20			26			17			19			24			18			18			15			36			33			62			51			28			75
Case reserve development above $250,000		17			7			8			7			16			13			7			8			15			15			22			28			79			44
Large losses total		52			46			30			35			52			41			37			32			65			69			111			110			182			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.

Consolidated Cincinnati Insurance Companies
Agency Direct Written Premiums by Risk State by Line of Business for the Twelve Months Ended December 31, 2008

(Dollars in millions)	Standard Market																					E&S						Standard Market						Consolidated
	Commercial															Personal								Consolidated				Commercial			Personal			Total
	Comm		Comm		Comm		Workers’			Specialty		Surety &		Mach. &		Pers		Home		Other		Casualty		2008		2007		Change			Change			Change
Risk State	Casualty		Prop		Auto		Comp			Packages		Exec Risk		Equip		Auto		Owner		Personal		& Prop		Total		Total		%			%			%
AL	$	19.2	$	17.1	$	8.0	$	1.4		$	7.8	$	2.0	$	0.9	$	16.3	$	25.2	$	5.2	$	0.2	$	103.3	$	100.6		(1.8	)		8.3			2.7
AZ		13.1		6.4		10.8		0.4			1.0		0.9		0.8		0.1		0.3		0.1		0.2		34.0		32.3		4.5			49.4			5.5
AR		10.4		10.1		6.3		5.2			3.9		1.4		0.5		2.5		2.8		0.8		0.1		44.1		42.9		3.5			(2.1	)		2.9
DE		1.4		1.3		0.7		1.7			0.2		0.1		0.1		—		—		—		—		5.5		4.5		21.8		nm				21.8
FL		28.8		24.4		11.7		2.2			2.6		3.0		0.9		11.5		18.1		3.4		—		106.5		123.2		(12.3	)		(16.1	)		(13.5	)
GA		26.2		20.1		17.3		13.4			7.1		6.9		0.9		30.1		28.0		7.8		1.5		159.2		160.7		(5.2	)		3.3			(0.9	)
ID		10.2		4.7		4.9		0.3			0.8		1.0		0.3		—		—		—		—		22.3		20.9		6.6		nm				6.6
IL		68.9		45.5		30.4		62.8			13.6		8.2		2.9		23.4		19.2		6.2		2.5		283.5		291.5		(4.2	)		(0.5	)		(2.7	)
IN		47.0		36.4		23.0		29.3			7.8		7.8		2.2		26.8		26.1		7.0		2.8		216.3		222.3		(5.5	)		0.3			(2.7	)
IA		20.0		14.9		9.6		25.5			4.4		2.7		1.2		3.4		4.0		1.8		0.1		87.5		88.0		0.8			(11.7	)		(0.6	)
KS		7.1		7.9		4.6		8.5			3.1		1.4		0.4		4.1		5.4		1.2		—		43.7		44.0		4.0			(13.1	)		(0.8	)
KY		21.5		19.9		14.9		3.6			5.5		3.7		1.0		19.8		15.8		4.2		—		109.8		106.9		2.1			3.8			2.7
MD		13.7		6.1		10.1		12.3			1.0		1.6		0.4		0.1		1.6		0.5		0.1		47.3		49.2		(4.7	)		18.9			(3.7	)
MI		34.0		21.7		15.0		19.5			11.8		6.4		1.8		10.8		14.4		3.2		0.7		139.4		150.9		(7.8	)		(9.0	)		(7.6	)
MN		22.7		15.8		8.6		8.4			3.3		2.6		1.2		5.9		5.3		2.9		0.3		76.9		83.4		(9.1	)		(3.8	)		(7.8	)
MO		23.6		18.7		13.4		18.6			5.2		2.6		1.2		2.5		4.1		0.9		0.3		91.2		96.9		(6.6	)		(1.8	)		(5.9	)
MT		14.1		6.6		6.5		0.1			0.9		0.5		0.4		0.5		0.5		0.1		—		30.5		30.6		(3.9	)		511.1			(0.5	)
NE		6.5		5.5		3.4		8.4			1.3		1.0		0.4		0.8		1.0		0.3		—		28.8		29.7		(2.1	)		(13.2	)		(3.0	)
NH		2.7		1.7		1.2		2.3			0.7		0.7		0.2		0.7		0.7		0.4		—		11.2		11.8		(4.4	)		(7.4	)		(4.8	)
NM		1.8		0.5		0.9		0.4			—		0.2		—		—		—		—		—		3.8		0.3	nm			nm			nm
NY		29.2		8.1		10.0		2.0			1.4		2.9		0.6		—		—		—		—		54.1		59.0		(8.2	)	nm				(8.3	)
NC		40.6		30.8		21.3		29.1			12.9		9.0		1.6		1.2		2.0		2.6		0.7		151.8		153.5		(2.1	)		15.6			(1.1	)
ND		5.3		4.1		2.5		—			0.9		0.7		0.2		0.5		0.5		0.2		—		14.8		14.3		5.2			(14.0	)		3.5
OH		150.6		91.1		67.0		(0.4	)		22.3		24.2		5.0		126.9		91.4		30.6		3.2		611.8		630.3		(4.2	)		(2.4	)		(2.9	)
PA		46.2		28.8		28.1		52.7			9.3		6.4		1.7		7.4		6.1		3.3		0.1		190.2		194.8		(2.1	)		(5.5	)		(2.3	)
SC		13.7		9.3		8.0		6.2			2.6		2.8		0.3		—		0.1		0.2		—		43.2		44.9		(4.0	)		8.0			(4.0	)
SD		4.3		2.8		2.1		4.3			0.4		0.7		0.2		—		—		—		—		14.7		15.1		(2.7	)	nm				(3.0	)
TN		23.4		18.3		14.0		12.3			8.6		5.1		1.1		8.2		8.9		3.1		0.1		103.1		106.2		(4.3	)		2.3			(2.9	)
TX		0.9		1.3		0.8		1.8			—		0.4		—		—		—		—		—		5.2		5.3		(2.8	)	nm				(2.6	)
UT		13.2		5.0		6.4		—			0.7		1.7		0.4		0.1		0.1		—		0.2		27.8		23.2		18.4		nm				19.7
VT		5.0		4.0		2.8		7.3			1.0		0.9		0.3		0.7		1.0		0.3		—		23.3		24.2		(4.1	)		(2.2	)		(3.5	)
VA		32.2		24.1		20.6		21.4			5.1		5.7		1.2		9.1		8.0		2.9		0.4		130.7		137.2		(5.1	)		(5.0	)		(4.7	)
WA		0.7		0.3		0.5		—			—		0.1		—		—		—		—		—		1.6		0.4		259.3		nm				292.7
WV		7.5		5.2		5.4		0.2			2.3		1.0		0.3		—		0.7		0.2		0.2		22.9		25.4		(9.8	)		(22.7	)		(9.6	)
WI		26.5		17.2		11.6		25.7			4.6		2.8		1.6		8.7		7.5		3.3		0.7		110.1		114.7		(4.8	)		(3.4	)		(4.0	)
All Other		4.2		2.7		2.6		4.3			0.2		1.3		0.1		—		0.3		—		—		15.8		14.7		7.5			7.9			7.4
Total	$	796.4	$	538.3	$	405.2	$	391.1		$	154.3	$	120.3	$	32.2	$	322.2	$	298.8	$	92.9	$	14.4	$	3,166.3	$	3,253.6		(3.5	)		(1.7	)		(2.7	)
Other Direct		—		1.7		—		7.5			—		—		—		—		2.4		—		—		11.6		15.7		(11.4	)		(55.5	)		(26.1	)
Total Direct	$	796.4	$	540.0	$	405.2	$	398.6		$	154.3	$	120.3	$	32.2	$	322.2	$	301.2	$	92.9	$	14.4	$	3,177.9	$	3,269.3		(3.6	)		(2.1	)		(2.8	)

There were no direct written premiums for Excess and Surplus during 2007

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
Commercial casualty:
Written premiums	$	183		$	171		$	199		$	211		$	189		$	179		$	218		$	245		$	410		$	462		$	582		$	641		$	764		$	830
Earned premiums		183			197			194			190			204			205			209			209			384			418			580			623			763			827
Loss and loss expenses ratio		23.9	%		44.4	%		39.8	%		58.3	%		32.0	%		63.7	%		54.6	%		53.5	%		48.9	%		54.2	%		47.4	%		57.4	%		41.7	%		51.1	%
Less catastrophe loss ratio		—			—			—			—			—			—			—			—			—			—			—			—			—			—
Loss and loss expenses excluding catastrophe loss ratio		23.9	%		44.4	%		39.8	%		58.3	%		32.0	%		63.7	%		54.6	%		53.5	%		48.9	%		54.2	%		47.4	%		57.4	%		41.7	%		51.1	%
Commercial property:
Written premiums	$	117		$	117		$	124		$	124		$	116		$	120		$	125		$	138		$	247		$	263		$	364		$	383		$	481		$	499
Earned premiums		122			120			123			122			124			125			125			123			244			248			364			373			487			497
Loss and loss expenses ratio		47.2	%		70.0	%		97.6	%		75.5	%		32.9	%		61.5	%		45.8	%		53.6	%		86.6	%		49.7	%		81.1	%		53.7	%		72.6	%		48.5	%
Less catastrophe loss ratio		(5.3	)		15.6			38.0			16.5			—			(1.4	)		3.2			6.9			27.3			5.0			23.4			2.9			16.2			2.2
Loss and loss expenses excluding catastrophe loss ratio		52.5	%		54.4	%		59.6	%		59.0	%		32.9	%		62.9	%		42.6	%		46.7	%		59.3	%		44.7	%		57.7	%		50.8	%		56.4	%		46.3	%
Commercial auto:
Written premiums	$	94		$	93		$	108		$	107		$	100		$	92		$	112		$	124		$	215		$	236		$	308		$	329		$	402		$	429
Earned premiums		103			103			104			101			110			108			110			113			205			223			308			331			411			440
Loss and loss expenses ratio		94.8	%		63.2	%		67.5	%		63.4	%		60.3	%		66.9	%		62.9	%		64.6	%		65.5	%		63.4	%		64.7	%		64.5	%		72.3	%		63.5	%
Less catastrophe loss ratio		(0.8	)		0.1			3.4			(0.4	)		(0.2	)		0.4			—			(0.2	)		1.5			—			1.0			0.1			0.6			—
Loss and loss expenses excluding catastrophe loss ratio		95.6	%		63.1	%		64.1	%		63.8	%		60.5	%		66.5	%		62.9	%		64.8	%		64.0	%		63.4	%		63.7	%		64.4	%		71.7	%		63.5	%
Workers’ compensation:
Written premiums	$	89		$	84		$	95		$	114		$	88		$	84		$	92		$	113		$	209		$	206		$	292		$	289		$	382		$	378
Earned premiums		93			93			94			94			93			94			95			92			189			187			282			280			375			373
Loss and loss expenses ratio		128.2	%		90.9	%		78.3	%		64.8	%		113.6	%		82.0	%		66.8	%		76.5	%		71.5	%		71.5	%		77.9	%		75.0	%		90.4	%		84.6	%
Less catastrophe loss ratio		—			—			—			—			—			—			—			—			—			—			—			—			—			—
Loss and loss expenses excluding catastrophe loss ratio		128.2	%		90.9	%		78.3	%		64.8	%		113.6	%		82.0	%		66.8	%		76.5	%		71.5	%		71.5	%		77.9	%		75.0	%		90.4	%		84.6	%
Specialty package:
Written premiums	$	37		$	36		$	36		$	37		$	36		$	34		$	36		$	41		$	73		$	77		$	109		$	111		$	145		$	146
Earned premiums		36			35			36			35			36			36			37			36			72			73			107			109			144			146
Loss and loss expenses ratio		40.6	%		80.2	%		109.7	%		63.4	%		41.9	%		76.7	%		49.9	%		69.6	%		86.8	%		59.6	%		84.6	%		65.3	%		73.5	%		59.4	%
Less catastrophe loss ratio		(3.8	)		12.2			43.9			8.1			0.6			6.2			2.6			7.0			26.2			4.7			21.5			5.2			15.2			4.1
Loss and loss expenses excluding catastrophe loss ratio		44.4	%		68.0	%		65.8	%		55.3	%		41.3	%		70.5	%		47.3	%		62.6	%		60.6	%		54.9	%		63.1	%		60.1	%		58.3	%		55.3	%
Surety and executive risk:
Written premiums	$	24		$	29		$	28		$	25		$	26		$	28		$	23		$	25		$	54		$	48		$	82		$	76		$	107		$	102
Earned premiums		28			27			28			25			27			25			24			24			53			47			80			73			107			100
Loss and loss expenses ratio		76.5	%		73.6	%		92.0	%		45.9	%		55.7	%		36.5	%		49.3	%		24.0	%		70.1	%		36.7	%		71.3	%		36.7	%		72.6	%		41.8	%
Less catastrophe loss ratio		—			—			—			—			—			—			—			—			—			—			—			—			—			—
Loss and loss expenses excluding catastrophe loss ratio		76.5	%		73.6	%		92.0	%		45.9	%		55.7	%		36.5	%		49.3	%		24.0	%		70.1	%		36.7	%		71.3	%		36.7	%		72.6	%		41.8	%
Machinery and equipment:
Written premiums	$	8		$	8		$	7		$	7		$	7		$	7		$	7		$	7		$	14		$	14		$	22		$	22		$	30		$	29
Earned premiums		8			7			7			7			7			7			7			7			14			14			22			21			29			28
Loss and loss expense ratio		50.4	%		32.4	%		34.1	%		53.3	%		27.8	%		34.7	%		20.4	%		28.2	%		43.6	%		24.3	%		39.8	%		27.8	%		42.5	%		27.8	%
Less catastrophe loss ratio		(0.2	)		2.8			1.0			—			(0.8	)		1.3			—			(1.6	)		0.6			(0.8	)		1.3			(0.1	)		0.9			(0.3	)
Loss and loss expense excluding catastrophe loss ratio		50.6	%		29.6	%		33.1	%		53.3	%		28.6	%		33.4	%		20.4	%		29.8	%		43.0	%		25.1	%		38.5	%		27.9	%		41.6	%		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.

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
Personal auto:
Written premiums	$	73		$	88		$	89		$	69		$	75		$	92		$	93		$	72		$	158		$	164		$	246		$	256		$	320		$	332
Earned premiums		80			81			82			83			83			85			86			88			164			174			245			259			325			342
Loss and loss expenses ratio		81.0	%		63.7	%		56.8	%		67.6	%		65.3	%		67.7	%		67.6	%		66.5	%		62.2	%		67.1	%		62.7	%		67.3	%		67.2	%		66.8	%
Less catastrophe loss ratio		(1.6	)		1.7			3.1			1.7			(0.3	)		0.7			(0.3	)		(2.3	)		2.4			(1.3	)		2.2			(0.6	)		1.2			(0.6	)
Loss and loss expenses excluding catastrophe loss ratio		82.6	%		62.0	%		53.7	%		65.9	%		65.6	%		67.0	%		67.9	%		68.8	%		59.8	%		68.4	%		60.5	%		67.9	%		66.0	%		67.4	%
Homeowner:
Written premiums	$	65		$	72		$	79		$	60		$	66		$	77		$	80		$	61		$	139		$	141		$	212		$	218		$	277		$	284
Earned premiums		69			64			71			72			71			70			72			71			143			143			208			214			277			285
Loss and loss expenses ratio		52.9	%		122.8	%		130.7	%		91.4	%		36.6	%		82.7	%		66.9	%		50.0	%		110.9	%		58.5	%		114.6	%		66.5	%		99.2	%		59.0	%
Less catastrophe loss ratio		(8.5	)		54.5			60.0			25.2			(2.3	)		15.6			8.3			(7.5	)		42.5			0.4			46.2			5.4			32.5			3.5
Loss and loss expenses excluding catastrophe loss ratio		61.4	%		68.3	%		70.7	%		66.2	%		38.9	%		67.1	%		58.6	%		57.5	%		68.4	%		58.1	%		68.4	%		61.1	%		66.7	%		55.5	%
Other personal:
Written premiums	$	21		$	24		$	23		$	21		$	21		$	23		$	24		$	20		$	44		$	44		$	67		$	67		$	88		$	88
Earned premiums		22			22			21			22			22			22			22			22			44			43			65			65			87			87
Loss and loss expenses ratio		51.8	%		91.5	%		43.2	%		62.2	%		24.1	%		57.9	%		62.8	%		43.4	%		52.9	%		53.1	%		65.8	%		54.7	%		62.2	%		47.0	%
Less catastrophe loss ratio		0.4			14.5			8.0			4.1			0.6			3.7			3.5			(0.1	)		6.0			1.3			8.9			2.0			6.7			1.7
Loss and loss expenses excluding catastrophe loss ratio		51.4	%		77.0	%		35.2	%		58.1	%		23.5	%		54.2	%		59.3	%		43.5	%		46.9	%		51.8	%		56.9	%		52.7	%		55.5	%		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.

Consolidated Cincinnati Insurance Companies
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	$	610		$	564		$	532		$	467		$	515		$	558		$	484		$	472		$	999		$	956		$	1,564		$	1,514		$	2,173		$	2,029
Loss and loss expenses — prior AY’s		(121	)		(104	)		(87	)		(9	)		(118	)		(47	)		(40	)		(17	)		(96	)		(57	)		(200	)		(105	)		(320	)		(222	)
Catastrophes — current AY		(17	)		62			113			47			(1	)		15			15			16			160			30			222			47			205			45
Catastrophes — prior AY’s		1			1			—			(4	)		(1	)		(2	)		(4	)		(13	)		(4	)		(17	)		(3	)		(19	)		(2	)		(20	)
Total	$	473		$	523		$	558		$	501		$	395		$	524		$	455		$	458		$	1,059		$	912		$	1,583		$	1,437		$	2,056		$	1,832
Ratio to Earned Premiums
Loss and loss expenses :
Loss and loss expenses — current AY		81.9	%		75.1	%		69.9	%		62.2	%		66.3	%		71.9	%		61.6	%		60.2	%		66.0	%		60.9	%		69.0	%		64.5	%		72.2	%		64.9	%
Loss and loss expenses — prior AY’s		(16.2	)		(13.8	)		(11.4	)		(1.3	)		(15.2	)		(6.2	)		(5.1	)		(2.3	)		(6.3	)		(3.6	)		(8.8	)		(4.5	)		(10.7	)		(7.1	)
Catastrophes — current AY		(2.2	)		8.3			14.8			6.1			(0.1	)		2.0			1.9			2.1			10.6			1.9			9.8			2.0			6.8			1.4
Catastrophes — prior AY’s		0.1			0.1			0.1			(0.5	)		(0.1	)		(0.3	)		(0.5	)		(1.7	)		(0.3	)		(1.1	)		(0.1	)		(0.9	)		—			(0.6	)
Total		63.6	%		69.7	%		73.3	%		66.6	%		50.9	%		67.4	%		57.9	%		58.3	%		70.0	%		58.1	%		69.9	%		61.1	%		68.3	%		58.6	%
Commercial Lines
Loss and loss expenses:
Loss and loss expenses — current AY	$	464		$	436		$	416		$	354		$	412		$	433		$	370		$	356		$	770		$	726		$	1,207		$	1,158		$	1,671		$	1,570
Loss and loss expenses — prior AY’s		(97	)		(88	)		(74	)		(11	)		(102	)		(38	)		(40	)		(12	)		(85	)		(52	)		(173	)		(90	)		(270	)		(192	)
Catastrophes — current AY		(9	)		23			66			25			—			5			8			12			92			20			115			26			106			25
Catastrophes — prior AY’s		—			—			—			(3	)		—			(4	)		(3	)		(2	)		(3	)		(5	)		(3	)		(9	)		(3	)		(9	)
Total	$	358		$	371		$	408		$	365		$	310		$	396		$	335		$	354		$	774		$	689		$	1,146		$	1,085		$	1,504		$	1,394
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses — current AY		81.0	%		74.9	%		71.1	%		61.6	%		68.5	%		72.2	%		61.0	%		59.0	%		66.4	%		60.0	%		69.2	%		63.9	%		72.1	%		65.2	%
Loss and loss expenses — prior AY’s		(17.0	)		(15.0	)		(12.6	)		(1.9	)		(17.0	)		(6.4	)		(6.6	)		(2.1	)		(7.3	)		(4.2	)		(9.9	)		(4.9	)		(11.7	)		(8.0	)
Catastrophes — current AY		(1.5	)		4.0			11.2			4.5			—			0.9			1.4			2.2			7.9			1.8			6.6			1.5			4.6			1.1
Catastrophes — prior AY’s		—			—			0.1			(0.6	)		—			(0.7	)		(0.5	)		(0.4	)		(0.3	)		(0.4	)		(0.2	)		(0.6	)		(0.1	)		(0.4	)
Total		62.5	%		63.8	%		69.7	%		63.6	%		51.4	%		66.0	%		55.3	%		58.7	%		66.7	%		57.2	%		65.7	%		59.9	%		64.9	%		57.9	%
Personal Lines
Loss and loss expenses:
Loss and loss expenses — current AY	$	143		$	127		$	115		$	113		$	103		$	125		$	114		$	116		$	228		$	230		$	355		$	356		$	498		$	459
Loss and loss expenses — prior AY’s		(23	)		(16	)		(13	)		2			(16	)		(9	)		—			(5	)		(11	)		(5	)		(27	)		(15	)		(51	)		(30	)
Catastrophes — current AY		(8	)		39			47			22			(1	)		10			7			4			68			10			107			21			99			20
Catastrophes — prior AY’s		1			1			—			(1	)		(1	)		2			(1	)		(11	)		(1	)		(12	)		—			(10	)		1			(11	)
Total	$	113		$	151		$	149		$	136		$	85		$	128		$	120		$	104		$	284		$	223		$	435		$	352		$	547		$	438
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses — current AY		83.7	%		75.9	%		65.6	%		64.1	%		58.5	%		70.5	%		63.3	%		64.3	%		64.8	%		64.1	%		68.4	%		66.1	%		72.2	%		64.3	%
Loss and loss expenses — prior AY’s		(13.7	)		(9.6	)		(7.2	)		1.0			(8.9	)		(5.1	)		(0.1	)		(2.9	)		(3.1	)		(1.5	)		(5.1	)		(2.8	)		(7.3	)		(4.3	)
Catastrophes — current AY		(4.6	)		23.3			27.0			11.9			(0.7	)		5.9			3.8			2.0			19.6			2.9			20.7			3.9			14.4			2.8
Catastrophes — prior AY’s		0.5			0.5			—			(0.3	)		(0.3	)		1.1			(0.3	)		(6.1	)		(0.3	)		(3.5	)		—			(1.8	)		0.1			(1.5	)
Total		65.9	%		90.1	%		85.4	%		76.7	%		48.6	%		72.4	%		66.7	%		57.3	%		81.0	%		62.0	%		84.0	%		65.4	%		79.4	%		61.3	%

* 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.

Consolidated Cincinnati Insurance Companies
10-Year Property Casualty Data — Consolidated

	Years ended December 31,
(Dollars in millions)	2008			2007			2006			2005			2004			2003			2002			2001			2000			1999
Premiums
Adjusted written premiums — statutory*	$	3,040		$	3,149		$	3,172		$	3,097		$	3,026		$	2,789		$	2,496		$	2,188		$	1,936		$	1,681
Codification		—			—			—			—			—			—			—			402			(55	)		—
Written premium adjustment — statutory		(30	)		(32	)		6			(21	)		(29	)		26			117			—			—			—
Reported written premiums — statutory**		3,010			3,117			3,178			3,076			2,997			2,815			2,613			2,590			1,881			1,681
Unearned premium change		—			8			(14	)		(18	)		(78	)		(162	)		(222	)		(517	)		(53	)		(23	)
Earned premiums (GAAP)	$	3,010		$	3,125		$	3,164		$	3,058		$	2,919		$	2,653		$	2,391		$	2,073		$	1,828		$	1,658
Year-over-year growth rate:
Adjusted written premiums — statutory		(3.5	)%		(0.7	)%		2.4	%		2.3	%		8.5	%		11.7	%		14.0	%		13.0	%		15.2	%	7.9		%
Written premiums — statutory		(3.4	)%		(1.9	)%		3.3	%		2.6	%		6.5	%		7.7	%		0.9	%		37.7	%		11.9	%	7.9		%
Earned premiums		(3.7	)%		(1.2	)%		3.5	%		4.8	%		10.0	%		11.0	%		15.3	%		13.4	%		10.3	%	7.5		%
Statutory combined ratio
Reported statutory combined ratio*		100.4	%		90.3	%		93.9	%		89.0	%		89.4	%		94.2	%		98.4	%		99.5	%		112.5	%		100.4	%
Codification		—			—			—			—			—			—			—			4.1			(0.9	)		—
Written premium adjustment — statutory	nm			nm			nm			nm			nm			nm				1.2			—			—			—
One-time item		—			—			—			—			—			0.8			—			—			(1.7	)		—
Statutory combined ratio (adjusted)		100.4	%		90.3	%		93.9	%		89.0	%		89.4	%		95.0	%		99.6	%		103.6	%		109.9	%		100.4	%
Less catastrophe losses		6.8			0.8			5.5			4.1			5.1			3.6			3.6			3.1			2.7			2.5
Statutory combined ratio excluding catastrophe losses (adjusted)		93.6	%		89.5	%		88.4	%		84.9	%		84.3	%		91.4	%		96.0	%		100.5	%		107.2	%		97.9	%
Reported commission expense ratio*		18.4	%		19.2	%		18.7	%		19.3	%		19.2	%		17.6	%		15.9	%		13.9	%		17.4	%		17.4	%
Codification		—			—			—			—			—			—			—			2.6			(0.5	)		—
Written premium adjustment-statutory	nm			nm			nm			nm			nm			nm				0.8			—			—			—
One-time item		—			—			—			—			—			—			—			—			—			—
Commission expense ratio (adjusted)		18.4	%		19.2	%		18.7	%		19.3	%		19.2	%		17.6	%		16.7	%		16.5	%		16.9	%		17.4	%
Reported other expense ratio*		13.7	%		12.5	%		11.7	%		10.5	%		10.1	%		8.9	%		9.6	%		8.7	%		12.6	%		11.4	%
Codification		—			—			—			—			—			—			—			1.5			(0.4	)		—
Written premium adjustment — statutory	nm			nm			nm			nm			nm			nm				0.4			—			—			—
One-time item		—			—			—			—			—			0.8			—			—			(1.7	)		—
Other expense ratio (adjusted)		13.7	%		12.5	%		11.7	%		10.5	%		10.1	%		9.7	%		10.0	%		10.2	%		10.5	%		11.4	%
Reported statutory expense ratio*		32.1	%		31.7	%		30.4	%		29.8	%		29.3	%		26.5	%		25.5	%		22.6	%		30.0	%		28.8	%
Codification		—			—			—			—			—			—			—			4.1			(0.9	)		—
Written premium adjustment — statutory	nm			nm			nm			nm			nm			nm				1.2			—			—			—
One-time item		—			—			—			—			—			0.8			—			—			(1.7	)		—
Statutory expense ratio (adjusted)		32.1	%		31.7	%		30.4	%		29.8	%		29.3	%		27.3	%		26.7	%		26.7	%		27.4	%		28.8	%
GAAP combined ratio
GAAP combined ratio		100.6	%		90.3	%		94.3	%		89.2	%		89.8	%		94.7	%		99.7	%		104.9	%		112.8	%		100.2	%
One-time item		—			—			—			—			—			0.8			—			—			(2.1	)		—
GAAP combined ratio before one-time item		100.6	%		90.3	%		94.3	%		89.2	%		89.8	%		95.5	%		99.7	%		104.9	%		110.7	%		100.2	%
Written premiums to surplus
Adjusted premiums to statutory surplus ratio		0.905			0.731			0.668			0.739			0.721			1.002			1.067			0.864
Written premium adjustment		(0.009	)		(0.007	)		0.001			(0.005	)		(0.007	)		0.010			0.050			0.159
Reported premiums to statutory surplus ratio		0.896			0.724			0.669			0.734			0.714			1.012			1.117			1.023

*	Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. Ratios are calculated based on whole dollar amounts.
*	nm — Not meaningful
*	Statutory data prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners and filed with the appropriate regulatory bodies.
**	Prior to 2001, property casualty written premiums were recognized as they were billed throughout the policy period. Effective January 1, 2001, written premiums have been recognized on an annualized basis at the effective date of the policy. Written premiums for 2000 were reclassified to conform with the 2001 presentation; information was not readily available to reclassify earlier year statutory data. The growth rates in written premiums between 1999 and 2000 are overstated because 1999 premiums are shown on a billed basis.

Consolidated Cincinnati Insurance Companies
6-Year Property Casualty Data — Commercial Lines

	Years ended December 31,
(Dollars in millions)	2008			2007			2006			2005			2004			2003
Premiums
Adjusted written premiums — statutory*	$	2,341		$	2,444		$	2,435		$	2,306		$	2,209		$	2,009
Written premium adjustment — statutory		(30	)		(31	)		7			(16	)		(23	)		22
Reported written premiums — statutory	$	2,311		$	2,413		$	2,442		$	2,290		$	2,186		$	2,031
Unearned premium change		5			(2	)		(40	)		(36	)		(60	)		(123	)
Earned premiums (GAAP)	$	2,316		$	2,411		$	2,402		$	2,254		$	2,126		$	1,908
Year-over-year growth rate:
Adjusted written premiums — statutory		(4.2	)%		0.4	%		5.6	%		4.4	%		10.0	%		11.9	%
Written premiums — statutory		(4.2	)%		(1.2	)%		6.7	%		4.7	%		7.6	%		6.6	%
Earned premiums		(3.9	)%		0.4	%		6.6	%		6.0	%		11.4	%		10.8	%
Statutory combined ratio
Reported statutory combined ratio*		96.6	%		89.2	%		90.8	%		87.1	%		83.7	%		90.9	%
One-time item		—			—			—			—			—			0.7
Statutory combined ratio (adjusted)		96.6	%		89.2	%		90.8	%		87.1	%		83.7	%		91.6	%
Less catastrophe losses		4.5			0.7			3.7			3.4			3.4			2.2
Statutory combined ratio excluding catastrophe losses (adjusted)		92.1	%		88.5	%		87.1	%		83.7	%		80.3	%		89.4	%
GAAP combined ratio
GAAP combined ratio		97.0	%		89.2	%		91.3	%		87.4	%		84.1	%		91.3	%
One-time item		—			—			—			—			—			0.8
GAAP combined ratio before one-time item		97.0	%		89.2	%		91.3	%		87.4	%		84.1	%		92.1	%

*	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.

Consolidated Cincinnati Insurance Companies
6-Year Property Casualty Data — Personal Lines

							Years ended December 31,
(Dollars in millions)	2008			2007			2006			2005			2004			2003
Premiums
Adjusted written premiums – statutory*	$	685		$	705		$	737		$	791		$	817		$	780
Written premium adjustment – statutory		—			(1	)		(1	)		(5	)		(6	)		4
Reported written premiums – statutory	$	685		$	704		$	736		$	786		$	811		$	784
Unearned premium change		4			10			26			18			(18	)		(39	)
Earned premiums (GAAP)	$	689		$	714		$	762		$	804		$	793		$	745
Year-over-year growth rate:
Adjusted written premiums – statutory		(2.8	)%		(4.3	)%		(6.8	)%		(3.2	)%		4.7	%		12.0	%
Written premiums – statutory		(2.7	)%		(4.4	)%		(6.4	)%		(3.1	)%		3.4	%		10.8	%
Earned premiums		(3.5	)%		(6.3	)%		(5.2	)%		1.4	%		6.4	%		11.2	%
Statutory combined ratio
Reported statutory combined ratio*		111.6	%		94.1	%		103.6	%		94.3	%		104.6	%		102.9	%
One-time item		—			—			—			—			—			1.0
Statutory combined ratio (adjusted)		111.6	%		94.1	%		103.6	%		94.3	%		104.6	%		103.9	%
Less catastrophe losses		14.5			1.3			11.3			6.3			9.7			7.3
Statutory combined ratio excluding catastrophe losses (adjusted)		97.1	%		92.8	%		92.3	%		88.0	%		94.9	%		96.6	%
GAAP combined ratio
GAAP combined ratio		111.9	%		93.9	%		103.6	%		94.4	%		105.0	%		103.6	%
One-time item		—			—			—			—			—			1.1
GAAP combined ratio before one-time item		111.9	%		93.9	%		103.6	%		94.4	%		105.0	%		104.7	%

*	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.

Consolidated Cincinnati Insurance Companies
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
Agency renewal written premiums	$	669		$	687		$	739		$	733		$	705		$	732		$	761		$	762		$	1,471		$	1,523		$	2,159		$	2,255		$	2,828		$	2,960
Agency new business written premiums		100			92			100			76			81			82			81			81			176			162			267			244			368			325
Ceded written premiums		(41	)		(49	)		(37	)		(38	)		(41	)		(41	)		(39	)		(38	)		(75	)		(77	)		(124	)		(118	)		(165	)		(159	)
Other written premiums		2			4			1			2			4			6			5			6			3			11			7			17			9			22
Written premium adjustment – statutory		(13	)		(8	)		(12	)		3			(25	)		(43	)		2			35			(9	)		37			(17	)		(6	)		(30	)		(31	)
Reported written premiums – statutory*	$	717		$	727		$	790		$	776		$	724		$	736		$	810		$	846		$	1,566		$	1,656		$	2,292		$	2,392		$	3,010		$	3,117
Unearned premium change		30			24			(29	)		(25	)		53			41			(23	)		(61	)		(54	)		(85	)		(29	)		(44	)		—			8
Earned premiums	$	747		$	751		$	761		$	751		$	777		$	777		$	787		$	785		$	1,512		$	1,571		$	2,263		$	2,348		$	3,010		$	3,125
Year over year change %
Agency renewal written premiums		(5.1	)%		(6.1	)%		(3.0	)%		(3.7	)%		(3.5	)%		1.6	%		3.3	%		1.9	%		(3.4	)%		2.6	%		(4.3	)%		2.3	%		(4.5)	%		0.8	%
Agency new business written premiums		23.6			12.1			22.8			(6.3	)		(8.3	)		(15.9	)		(13.3	)		4.8			8.3			(5.2	)		9.6			(9.1	)		13.1			(8.9	)
Ceded written premiums		0.3			20.3			(4.6	)		(1.1	)		7.3			12.6			29.3			17.5			(2.9	)		23.2			5.1			19.4			3.8			16.0
Other written premiums		(50.6	)		(39.1	)		(74.6	)		(71.8	)		(9.5	)		31.6			61.3			60.6			(73.1	)		60.9			(61.6	)		49.6			(59.3	)		32.0
Written premium adjustment – statutory		(48.0	)		(81.6	)		(900.0	)		(91.5	)		(18.0	)		521.4			(85.7	)		7.3			(124.3	)		(15.1	)		161.5			(117.8	)		(4.8	)		(616.4	)
Reported written premiums – statutory*		(1.0	)		(1.3	)		(2.5	)		(8.3	)		(4.1	)		(5.6	)		(0.5	)		2.1			(5.4	)		0.8			(4.2	)		(1.3	)		(3.4	)		(1.9	)
Statutory combined ratio
Statutory combined ratio		100.2	%		102.8	%		101.5	%		97.2	%		87.9	%		98.7	%		87.7	%		87.7	%		99.4	%		87.7	%		100.5	%		91.3	%		100.4	%		90.3	%
Contribution from catastrophe losses		(2.1	)		8.4			14.9			5.7			(0.2	)		1.7			1.4			0.4			10.3			0.9			9.7			1.2			6.8			0.8
Statutory combined ratio excluding catastrophe losses		102.3	%		94.4	%		86.6	%		91.5	%		88.1	%		97.0	%		86.3	%		87.3	%		89.1	%		86.8	%		90.8	%		90.1	%		93.6	%		89.5	%
Commission expense ratio		20.8	%		17.7	%		17.4	%		17.7	%		23.1	%		18.1	%		18.1	%		18.0	%		17.5	%		18.0	%		17.6	%		18.0	%		18.4	%		19.2	%
Other expense ratio		15.9			15.4			10.7			12.9			13.9			13.2			11.7			11.4			11.8			11.6			12.8			12.1			13.7			12.4
Statutory expense ratio		36.7	%		33.1	%		28.1	%		30.6	%		37.0	%		31.3	%		29.8	%		29.4	%		29.3	%		29.6	%		30.4	%		30.1	%		32.1	%		31.6	%
GAAP combined ratio
GAAP combined ratio		98.9	%		101.2	%		103.5	%		98.6	%		85.6	%		97.3	%		88.6	%		89.6	%		101.1	%		89.1	%		101.1	%		91.8	%		100.6	%		90.3	%
Contribution from catastrophe losses		(2.1	)		8.4			14.9			5.7			(0.2	)		1.7			1.4			0.4			10.3			0.9			9.7			1.2			6.8			0.8
GAAP combined ratio excluding catastrophe losses		101.0	%		92.8	%		88.6	%		92.9	%		85.8	%		95.6	%		87.2	%		89.2	%		90.8	%		88.2	%		91.4	%		90.6	%		93.8	%		89.5	%

*	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.

Consolidated Cincinnati Insurance Companies
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
Agency renewal written premiums	$	514		$	502		$	552		$	588		$	546		$	544		$	569		$	612		$	1,140		$	1,181		$	1,642		$	1,725		$	2,156		$	2,271
Agency new business written premiums		83			77			87			66			71			72			71			72			153			143			229			216			312			287
Ceded written premiums		(23	)		(46	)		(31	)		(32	)		(34	)		(32	)		(32	)		(31	)		(63	)		(62	)		(109	)		(94	)		(131	)		(128	)
Other written premiums		(9	)		13			1			—			3			4			3			4			1			7			14			11			4			14
Written premium adjustment — statutory		(13	)		(8	)		(12	)		3			(24	)		(44	)		2			36			(9	)		37			(17	)		(7	)		(30	)		(31	)
Reported written premiums — statutory*	$	552		$	538		$	597		$	625		$	562		$	544		$	613		$	693		$	1,222		$	1,306		$	1,759		$	1,851		$	2,311		$	2,413
Unearned premium change		21			44			(11	)		(51	)		39			56			(7	)		(89	)		(61	)		(96	)		(16	)		(41	)		5			(2	)
Earned premiums	$	573		$	582		$	586		$	574		$	601		$	600		$	606		$	604		$	1,161		$	1,210		$	1,743		$	1,810		$	2,316		$	2,411
Year over year change %
Agency renewal written premiums		(5.9	)%		(7.7	)%		(2.9	)%		(4.0	)%		(3.4	)%		3.5	%		7.4	%		3.9	%		(3.5	)%		5.6	%		(4.8	)%		4.9	%		(5.1	)%		2.8	%
Agency new business written premiums		16.4			6.0			21.2			(8.3	)		(10.5	)		(18.3	)		(16.9	)		2.7			6.4			(8.1	)		6.3			(11.8	)		8.8			(11.5	)
Ceded written premiums		(33.0	)		43.6			(1.6	)		2.8			11.6			9.5			24.1			10.9			0.6			17.3			15.1			14.5			2.4			13.7
Other written premiums		(391.7	)		250.5			(73.4	)		(99.4	)		(27.0	)		(3.6	)		12.3			37.2			(89.2	)		26.2			25.0			14.3			(66.5	)		1.7
Written premium adjustment — statutory		(45.8	)		(81.6	)		(900.0	)		(91.5	)		(18.1	)		530.2			(84.7	)		5.8			(124.3	)		(14.7	)		161.7			(117.8	)		(1.6	)		(526.2	)
Reported written premiums — statutory*		(1.9	)		(1.2	)		(2.7	)		(9.8	)		(4.6	)		(6.4	)		1.7			3.8			(6.5	)		2.8			(4.9	)		(0.1	)		(4.2	)		(1.2	)
Statutory combined ratio
Statutory combined ratio		99.0	%		97.3	%		97.5	%		93.3	%		89.7	%		97.2	%		84.4	%		86.5	%		95.5	%		85.4	%		95.9	%		89.2	%		96.6	%		89.2	%
Contribution from catastrophe losses		(1.5	)		4.0			11.3			3.9			—			0.1			0.8			1.8			7.7			1.3			6.4			0.9			4.5			0.7
Statutory combined ratio excluding catastrophe losses		100.5	%		93.3	%		86.2	%		89.4	%		89.7	%		97.1	%		83.6	%		84.7	%		87.8	%		84.1	%		89.5	%		88.3	%		92.1	%		88.5	%
Commission expense ratio		20.8	%		18.1	%		16.9	%		16.5	%		23.1	%		18.2	%		17.7	%		16.7	%		16.7	%		17.2	%		17.1	%		17.5	%		18.0	%		18.8	%
Other expense ratio		15.7			15.4			10.9			13.2			15.1			13.1			11.4			11.2			12.1			11.3			13.1			11.8			13.7			12.6
Statutory expense ratio		36.5	%		33.5	%		27.8	%		29.7	%		38.2	%		31.3	%		29.1	%		27.9	%		28.8	%		28.5	%		30.2	%		29.3	%		31.7	%		31.4	%
GAAP combined ratio
GAAP combined ratio		98.1	%		94.9	%		99.9	%		95.0	%		87.3	%		95.4	%		85.2	%		88.9	%		97.4	%		87.0	%		96.6	%		89.8	%		97.0	%		89.2	%
Contribution from catastrophe losses		(1.5	)		4.0			11.3			3.9			—			0.1			0.8			1.8			7.7			1.3			6.4			0.9			4.5			0.7
GAAP combined ratio excluding catastrophe losses		99.6	%		90.9	%		88.6	%		91.1	%		87.3	%		95.3	%		84.4	%		87.1	%		89.7	%		85.7	%		90.2	%		88.9	%		92.5	%		88.5	%

*	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.

Consolidated Cincinnati Insurance Companies
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
Agency renewal written premiums	$	156		$	185		$	186		$	146		$	159		$	188		$	192		$	150		$	332		$	343		$	517		$	531		$	672		$	690
Agency new business written premiums		11			11			10			8			10			10			10			9			19			18			30			28			42			38
Ceded written premiums		(8	)		(13	)		(6	)		(6	)		(7	)		(8	)		(7	)		(8	)		(12	)		(15	)		(26	)		(23	)		(33	)		(30	)
Other written premiums		—			1			1			2			1			2			2			2			2			4			4			6			4			7
Written premium adjustment — statutory		—			—			—			—			(1	)		—			—			—			—			—			—			—			—			(1	)
Reported written premiums — statutory*	$	159		$	184		$	191		$	150		$	162		$	192		$	197		$	153		$	341		$	350		$	525		$	542		$	685		$	704
Unearned premium change		12			(17	)		(17	)		27			14			(15	)		(17	)		28			10			11			(7	)		(4	)		4			10
Earned premiums	$	171		$	167		$	174		$	177		$	176		$	177		$	180		$	181		$	351		$	361		$	518		$	538		$	689		$	714
Year over year change %
Agency renewal written premiums		(2.3	)%		(1.6	)%		(3.3	)%		(2.8	)%		(3.9	)%		(3.4	)%		(7.1	)%		(5.6	)%		(3.1	)%		(6.5	)%		(2.5	)%		(5.4	)%		(2.5	)%		(5.1	)%
Agency new business written premiums		17.9			11.8			7.7			(0.5	)		12.1			7.0			26.5			25.4			3.9			26.0			6.7			18.6			9.5			16.9
Ceded written premiums		7.0			61.4			(17.3	)		(17.2	)		(9.1	)		26.5			56.4			56.4			(17.3	)		56.4			11.0			44.1			10.1			26.6
Other written premiums		(64.9	)		(37.3	)		(76.2	)		(0.4	)		117.4			276.1			265.9			187.1			(43.3	)		227.0			(41.3	)		242.4			(45.4	)		211.2
Written premium adjustment — statutory		(100.0	)		(100.0	)		—			(100.0	)		(17.0	)		(92.9	)		(100.0	)		(100.9	)		(100.0	)		(98.4	)		(100.0	)		(102.0	)		(100.0	)		(5.1	)
Reported written premiums — statutory*		(1.4	)		(4.0	)		(3.0	)		(2.0	)		(2.3	)		(3.1	)		(6.8	)		(5.1	)		(2.6	)		(6.1	)		(3.1	)		(5.1	)		(2.7	)		(4.4	)
Statutory combined ratio
Statutory combined ratio		102.1	%		120.6	%		114.3	%		110.8	%		81.4	%		103.6	%		98.6	%		93.5	%		112.2	%		95.8	%		114.9	%		98.3	%		111.6	%		94.1	%
Contribution from catastrophe losses		(4.1	)		23.8			27.0			11.6			(1.0	)		7.0			3.5			(4.1	)		19.3			(0.3	)		20.7			2.1			14.5			1.3
Statutory combined ratio excluding catastrophe losses		106.2	%		96.8	%		87.3	%		99.2	%		82.4	%		96.6	%		95.1	%		97.6	%		92.9	%		96.1	%		94.2	%		96.2	%		97.1	%		92.8	%
Commission expense ratio		21.2	%		16.4	%		18.6	%		22.3	%		22.8	%		17.6	%		19.3	%		23.8	%		20.2	%		21.2	%		18.9	%		20.6	%		19.5	%		19.9	%
Other expense ratio		15.0			14.0			10.3			11.8			10.0			13.5			12.6			12.4			11.0			12.6			12.0			12.2			12.7			12.9
Statutory expense ratio		36.2	%		30.4	%		28.9	%		34.1	%		32.8	%		31.1	%		31.9	%		36.2	%		31.2	%		33.8	%		30.9	%		32.8	%		32.2	%		32.8	%
GAAP combined ratio
GAAP combined ratio		100.0	%		122.5	%		115.3	%		110.1	%		79.7	%		103.8	%		99.9	%		92.0	%		112.7	%		96.0	%		115.9	%		98.6	%		111.9	%		93.9	%
Contribution from catastrophe losses		(4.1	)		23.8			27.0			11.6			(1.0	)		7.0			3.5			(4.1	)		19.3			(0.3	)		20.7			2.1			14.5			1.3
GAAP combined ratio excluding catastrophe losses		104.1	%		98.7	%		88.3	%		98.5	%		80.7	%		96.8	%		96.4	%		96.1	%		93.4	%		96.3	%		95.2	%		96.5	%		97.4	%		92.6	%

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

The Cincinnati Life Insurance Company
GAAP Statements of Income

	For the Three Months Ended December 31,												For the Twelve Months Ended December 31,
(Dollars in millions)	2008			2007			Change			% Change			2008			2007			Change			% Change
Revenues:
Premiums earned:
Life	$	48		$	47		$	1			2.6		$	173		$	171		$	2			1.2
Accident health		2			2			—			(1.8	)		7			7			—			3.7
Premiums ceded		(16	)		(23	)		7			(28.6	)		(54	)		(53	)		(1	)		2.3
Total premiums earned		33			25			8			30.6			126			125			1			0.8
Investment income		31			30			1			4.9			120			115			5			4.5
Realized investment gains and losses		(23	)		(12	)		(11	)		97.8			(90	)		40			(130	)		(323.4	)
Other income		1			1			—			(35.8	)		2			4			(2	)		(56.0	)
Total revenues	$	42		$	45		$	(2	)		(5.4	)	$	158		$	284		$	(126	)		(44.5	)
Benefits & expenses:
Losses & policy benefits	$	27		$	46		$	(19	)		(41.9	)	$	175		$	174		$	1			0.7
Reinsurance recoveries		—			(11	)		11			103.2			(33	)		(40	)		7			(17.3	)
Commissions		6			(1	)		7			(605.8	)		25			25			—			(0.9	)
Other operating expenses		11			11			—			(2.9	)		34			35			(1	)		(2.6	)
Interest expense		—			—			—			—			—			—			—			—
Taxes, licenses & fees		1			1			—			21.1			4			4			1			14.5
Incr deferred acq expense		(5	)		(3	)		(3	)		(97.1	)		(18	)		(12	)		(6	)		52.2
Incr deferred acq expense		—			—			—			—			—			—			—			—
Total expenses	$	39		$	43		$	(4	)		(8.6	)	$	187		$	185		$	2			0.8
Income before income taxes	$	3		$	1		$	1			89.8		$	(29	)	$	99		$	(128	)		(129.4	)
Provision for income taxes:
Current	$	14		$	3		$	11			354.1		$	34		$	8		$	27			348.6
Current capital gains/losses		(8	)		(4	)		(4	)		98.4			(31	)		14			(46	)		(321.0	)
Deferred		(5	)		1			(6	)		(578.7	)		(13	)		12			(25	)		(210.6	)
Total income taxes	$	1		$	—		$	1			354.8		$	(11	)	$	34		$	(44	)		(131.1	)
Net income	$	2		$	1		$	1			49.5		$	(19	)	$	65		$	(84	)		(128.5	)

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

The Cincinnati Life Insurance Company
Statutory Statements of Income

	For the Three Months Ended December 31,												For the Twelve Months Ended December 31,
(Dollars in millions)	2008			2007			Change			% Change			2008			2007			Change			% Change
Net premiums written	$	48		$	38		$	10			26.0		$	177		$	158		$	19			12.0
Net investment income		31			30			1			4.9			120			114			5			4.5
Amortization of interest maintenance reserve		—			—			—			(59.9	)		(2	)		(1	)		(1	)		(73.7	)
Commissions and expense allowances on reinsurance ceded		2			3			—			(4.3	)		8			9			(1	)		(10.4	)
Income from fees associated with Separate Accounts		1			1			—			(35.8	)		2			4			(2	)		(56.0	)
Total revenues	$	82		$	71		$	11			15.1		$	305		$	285		$	20			7.0
Death benefits and matured endowments	$	12		$	8		$	4			47.0		$	46		$	35		$	11			29.9
Annuity benefits		12			8			4			56.3			34			37			(3	)		(7.7	)
Disability benefits and benefits under accident and health contracts		1			—			—			47.7			3			2			1			24.9
Surrender benefits and group conversions		6			6			—			2.9			24			23			—			0.8
Interest and adjustments on deposit-type contract funds		3			3			—			0.8			11			10			2			18.8
Increase in aggregate reserves for life and accident and health contracts		25			24			1			4.1			102			96			6			6.4
Payments on supplementary contracts with life contingencies		—			—			—			(4.2	)		—			—			—			(4.4	)
Total benefit expenses	$	59		$	49		$	10			19.5		$	220		$	203		$	16			8.1
Commissions	$	9		$	8		$	1			7.9		$	33		$	34		$	(1	)		(3.3	)
General insurance expenses and taxes		10			10			—			3.7			39			39			—			(0.1	)
Increase in loading on deferred and uncollected premiums		(1	)		(1	)		—			(21.5	)		(3	)		(6	)		3			45.3
Net transfers to or (from) Separate Accounts		—			—			—			—			—			—			—			—
Other deductions		—			—			—			—			—			—			—			0.9
Total operating expenses	$	18		$	17		$	1			5.1		$	69		$	67		$	2			2.6
Federal and Foreign Income Taxes Incurred		14			3			11			359.4			34			7			26			351.7
Net gain from operations before realized capital gains or (losses)	$	(9	)	$	1		$	(11	)		(841.5	)	$	(18	)	$	7		$	(24	)		(355.1	)
Net realized gains or (losses) net of capital gains tax		(13	)		(5	)		(8	)		(161.4	)		(53	)		32			(85	)		(262.2	)
Net Income (Statutory)	$	(22	)	$	(4	)	$	(18	)		(502.1	)	$	(70	)	$	39		$	(109	)		(278.4	)

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

Cincinnati Financial Corporation
Supplemental Financial Data
December 31, 2008
Fourth 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

a

A

-

A

3

BBB

+

The Cincinnati Insurance Companies

Insurer Financial Strength

Property Casualty Group

Standard Market Subsidiaries:

A

+

—

A

1

A

+

The Cincinnati Insurance Company

A

+

AA

-

A

1

A

+

The Cincinnati Indemnity Company

A

+

AA

-

A

1

A

+

The Cincinnati Casualty Company

A

+

AA

-

A

1

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 February 5, 2009, under continuous review and subject to change and/or affirmation. For the current ratings, select Financial Strength Ratings 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.

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. Management uses these measures when analyzing both GAAP and non-GAAP measures may improve its understanding of trends in the underlying business and help 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 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.