Cincinnati Financial 8K Reports Fourth-Quarter and Full-Year 2009 Results | CINF 4 Feb 10

Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending December 31, 2009

6200 South Gilmore Road

Fairfield, Ohio 45014-5141

www.cinfin.com

Investor Contact:	Media Contact:	Shareholder Contact:
Dennis E. McDaniel	Joan O. Shevchik	Jerry L. Litton
(513) 870-2768	(513) 603-5323	(513) 870-2639

	A.M. Best	Fitch	Moody’s	Standard & Poor’s
Cincinnati Financial Corporation
Corporate Debt	a	BBB+	A3	BBB+

The Cincinnati Insurance Companies
Insurer Financial Strength

Property Casualty Group
Standard Market Subsidiaries:	A+	–	A1	A+
The Cincinnati Insurance Company	A+	A+	A1	A+
The Cincinnati Indemnity Company	A+	A+	A1	A+
The Cincinnati Casualty Company	A+	A+	A1	A+
Surplus Lines Subsidiary:
The Cincinnati Specialty Underwriters Insurance Company	A	–	–	–

The Cincinnati Life Insurance Company	A	AA-	–	A+

Ratings are as of February 4, 2010, under continuous review and subject to change and/or affirmation. For the current ratings, select Financial Strength Ratings on www.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

Fourth Quarter 2009

		Page
Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures		3

Consolidated
Quick Reference		4
CFC and Subsidiaries Consolidation – Twelve Months Ended December 31, 2009		5
CFC and Subsidiaries Consolidation – Three Months Ended December 31, 2009		6
10-Year Net Income Reconciliation		7
Quarterly Net Income Reconciliation		8
CFC Insurance Subsidiaries – Selected Balance Sheet Data		9

Consolidated Property Casualty Insurance Operations
(Includes Cincinnati Specialty Underwriters Insurance Company (CSU))
Statutory Statements of Income		10
Statutory Quarterly Analysis – Consolidated		11
Statutory Quarterly Analysis – Commercial Lines		12
Statutory Quarterly Analysis – Personal Lines		13
Direct Written Premiums by Line of Business and State		14
Quarterly Property Casualty Data – Commercial Lines of Business		15
Quarterly Property Casualty Data – Personal Lines of Business		16
Quarterly Detailed Loss Analysis		17
Loss and Loss Expense Analysis		18

Reconciliation Data
10-Year Property Casualty Data – Consolidated		19
6-Year Property Casualty Data – Commercial Lines		20
6-Year Property Casualty Data – Personal Lines		21
Quarterly Property Casualty Data – Consolidated		22
Quarterly Property Casualty Data – Commercial Lines		23
Quarterly Property Casualty Data – Personal Lines		24

Life Insurance Operations
Statutory Statements of Income		25

Definitions of Non-GAAP Information and

Reconciliation to Comparable GAAP Measures

Cincinnati Financial Corporation prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual and therefore is not reconciled to GAAP data.

Management uses certain non-GAAP and non-statutory financial measures to evaluate its primary business areas – property casualty insurance, life insurance and investments. Management uses these measures when analyzing both GAAP and non-GAAP measures to improve its understanding of trends in the underlying business and to 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.

Cincinnati Financial Corporation

Quick Reference - Fourth Quarter 2009

(all data shown is for the three months ended or as of December 31, 2009)

(Based on reported data - see Pages 22-24 for adjusted data)

	12/31/2009		Year over year change %				12/31/2009			Year over year change %
Revenues:						Benefits and expenses:

Commercial lines net written premiums	$	503		(8.8	)	Commercial lines loss and loss expenses	$	356			(0.7	)
Personal lines net written premiums		167		4.7		Personal lines loss and loss expenses		102			(9.6	)
Surplus lines net written premiums		10		88.7		Surplus lines loss and loss expenses		5			76.9
Property casualty net written premiums		680		(5.1	)	Life and accident and health losses and policy benefits		42			57.1
Commercial lines net earned premiums		532		(7.3	)	Underwriting, acquisition and insurance expenses		254			414.7
Personal lines net earned premiums		172		0.5		Operating expenses		6		nm
Surplus lines net earned premiums		9		255.6		Interest expenses		13			(3.9	)
Property casualty net earned premiums		713		(4.6	)	Total expenses		778			(2.4	)
Life and accident and health net earned premiums		39		18.8		Net income before income taxes		355			60.7
Investment income		131		4.7		Total income tax		110			83.8
Realized gains on investments		247		125.4
Other income		3		(12.7	)	Ratios:
Total revenues		1,133		11.3
						Commercial lines GAAP combined ratio		100.8	%
Income:						Personal lines GAAP combined ratio		90.9
						Property casualty GAAP combined ratio		98.6
Operating income	$	86		(6.6	)
Net realized investment gains and losses		159		130.5		Commercial lines STAT combined ratio		102.0	%
Net income		245		52.1		Personal lines STAT combined ratio		89.4
						Property casualty STAT combined ratio		99.1
Per share (diluted):
						Balance Sheet:
Operating income	$	0.53		(7.0	)
Net realized investment gains and losses		0.97		131.0		Fixed maturity investments	$	7,855
Net income		1.50		51.5		Equity securities		2,701
Book value		29.25		13.6		Short-term investments		6
Weighted average shares – diluted		163,092,882		0.4		Other invested assets		81
						Total invested assets	$	10,643

						Loss and loss expense reserves	$	4,141
						Total debt		839
						Shareholders' equity		4,760

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Twelve Months Ended December 31, 2009

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I		CINFIN			C-SUPR			ELIM			Total
Revenues:
Premiums earned:
Property Casualty	$	-		$	3,080		$	-		$	-	$	-		$	-		$	-		$	3,080
Life		-			-			188			-		-			-			-			188
Accident health		-			-			8			-		-			-			-			8
Premiums ceded		-			(169	)		(53	)		-		-			-			-			(222	)
Total earned premium		-			2,911			143			-		-			-			-			3,054
Investment income		41			336			122			-		-			-			1			501
Realized gain on investments		135			223			(20	)		-		(1	)		-			-			336
Other income		15			5			-			7		-			10			(25	)		12
Total revenues	$	191		$	3,475		$	245		$	7	$	(1	)	$	10		$	(24	)	$	3,903

Benefits & expenses:
Losses & policy benefits	$	-		$	2,150		$	201		$	-	$	-		$	-		$	(5	)	$	2,346
Reinsurance recoveries		-			(64	)		(41	)		-		-			-			-			(104	)
Underwriting, acquisition and insurance expenses		-			955			49			-		-			-			-			1,004
Other operating expenses		26			-			-			4		-			10			(21	)		20
Interest expense		52			1			-			3		-			-			-			55
Total expenses	$	78		$	3,042		$	210		$	7	$	-		$	10		$	(26	)	$	3,321

Income (loss) before income taxes	$	113		$	433		$	35		$	-	$	(1	)	$	-		$	2		$	582

Provision (benefit) for income taxes:
Current operating income	$	(39	)	$	1		$	(2	)	$	-	$	-		$	-		$	-		$	(40	)
Capital gains/losses		47			79			(7	)		-		-			-			-			119
Deferred		24			25			21			-		-			-			-			71
Total provision for income taxes	$	32		$	105		$	12		$	-	$	-		$	-		$	-		$	150

Operating income (loss)	$	(8	)	$	184		$	35		$	-	$	-		$	-		$	2		$	215

Net income (loss) - current year	$	80		$	328		$	22		$	-	$	(1	)	$	-		$	2		$	432

Net income (loss) - prior year	$	56		$	305		$	(19	)	$	1	$	(1	)	$	(1	)	$	87		$	428

*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, 2009

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I		CINFIN		C-SUPR		ELIM			Total
Revenues:
Premiums earned:
Property Casualty	$	-		$	753		$	-		$	-	$	-	$	-	$	-		$	753
Life		-			-			54			-		-		-		-			54
Accident health		-			-			2			-		-		-		-			2
Premiums ceded		-			(40	)		(17	)		-		-		-		-			(57	)
Total earned premium		-			713			39			-		-		-		-			752
Investment income		10			88			32			-		-		-		-			131
Realized gain on investments		48			187			12			-		-		-		-			247
Other income		4			1			-			2		-		7		(11	)		3
Total revenues	$	62		$	990		$	84		$	2	$	-	$	7	$	(11	)	$	1,133

Benefits & expenses:
Losses & policy benefits	$	-		$	453		$	54		$	-	$	-	$	-	$	13		$	520
Reinsurance recoveries		-			11			(12	)		-		-		-		(14	)		(15	)
Underwriting, acquisition and insurance expenses		-			239			15			-		-		-		-			254
Other operating expenses		7			-			-			1		-		7		(10	)		6
Interest expense		13			-			-			-		-		-		-			13
Total expenses	$	20		$	703		$	57		$	1	$	-	$	7	$	(11	)	$	778

Income before income taxes	$	42		$	287		$	27		$	1	$	-	$	-	$	-		$	355

Provision (benefit) for income taxes:
Current operating income	$	(24	)	$	8		$	1		$	-	$	-	$	-	$	-		$	(15	)
Capital gains/losses		17			67			4			-		-		-		-			88
Deferred		21			12			4			-		-		-		-			37
Total provision for income taxes	$	13		$	87		$	9		$	-	$	-	$	-	$	-		$	110

Operating income (loss)	$	(2	)	$	79		$	9		$	-	$	-	$	-	$	-		$	86

Net income - current year	$	29		$	200		$	17		$	-	$	-	$	-	$	-		$	245

Net income - prior year	$	126		$	34		$	2		$	-	$	-	$	-	$	-		$	161

*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

10-Year Net Income Reconciliation

(Dollars in millions except per share data)	Years ended December 31,
	2009			2008			2007			2006			2005			2004			2003			2002			2001			2000

Net income	$	432		$	429		$	855		$	930		$	602		$	584		$	374		$	238		$	193		$	118
One-time item		-			-			-			-			-			-			15			-			-			(25	)
Net income before one-time item		432			429			855			930			602			584			359			238			193			143
Net realized investment gains and losses		217			85			245			434			40			60			(27	)		(62	)		(17	)		(2	)
Operating income before one-time item		215			344			610			496			562			524			386			300			210			145
Less catastrophe losses		(107	)		(132	)		(17	)		(113	)		(82	)		(96	)		(63	)		(57	)		(42	)		(33	)
Operating income before catastrophe losses and one-time item	$	322		$	476		$	627		$	609		$	644		$	620		$	449		$	357		$	252		$	178

Diluted per share data
Net income	$	2.65		$	2.62		$	4.97		$	5.30		$	3.40		$	3.28		$	2.10		$	1.32		$	1.07		$	0.67
One-time item		-			-			-			-			-			-			0.09			-			-			(0.14	)
Net income before one-time item		2.65			2.62			4.97			5.30			3.40			3.28			2.01			1.32			1.07			0.81
Net realized investment gains and losses		1.33			0.52			1.43			2.48			0.23			0.34			(0.15	)		(0.35	)		(0.10	)		(0.01	)
Operating income before one-time item		1.32			2.10			3.54			2.82			3.17			2.94			2.16			1.67			1.17			0.82
Less catastrophe losses		(0.66	)		(0.81	)		(0.10	)		(0.65	)		(0.46	)		(0.54	)		(0.35	)		(0.31	)		(0.23	)		(0.18	)
Operating income before catastrophe losses and one-time item	$	1.98		$	2.91		$	3.64		$	3.47		$	3.63		$	3.48		$	2.51		$	1.98		$	1.40		$	1.00

Return on equity
Return on average equity		9.7	%		8.5	%		13.4	%		14.4	%		9.8	%		9.4	%		6.3	%		4.1	%		3.2	%		2.1	%
One-time item		-			-			-			-			-			-			(0.3	)		-			-			0.4
Return on average equity before one-time item		9.7	%		8.5	%		13.4	%		14.4	%		9.8	%		9.4	%		6.0	%		4.1	%		3.2	%		2.5	%

Return on equity based on comprehensive income
ROE based on comprehensive income		18.2	%		(27.2	)%		(5.8	)%		16.4	%		1.6	%		4.6	%		13.8	%		(4.0	)%		2.5	%		13.1	%
One-time item		-			-			-			-			-			-			(0.3	)		-			-			0.4
ROE based on comprehensive income before one-time item		18.2	%		(27.2	)%		(5.8	)%		16.4	%		1.6	%		4.6	%		13.5	%		(4.0	)%		2.5	%		13.5	%

Value creation ratio
Book value per share growth		13.6	%		(27.9	)%		(9.3	)%		12.9	%		(2.0	)%		1.4	%		11.7	%		(6.5	)%		(0.5	)%		11.4	%
Shareholder dividend as a percentage of beginning book value		6.1			4.4			3.6			3.8			3.4			3.0			2.9			2.4			2.2			2.3
Value creation ratio		19.7	%		(23.5	)%		(5.7	)%		16.7	%		1.4	%		4.4	%		14.5	%		(4.1	)%		1.7	%		13.6	%

Investment income
Investment income, net of expenses	$	501		$	537		$	608		$	570		$	526		$	492		$	465		$	445		$	421		$	415
BOLI		-			-			-			-			-			-			-			-			-			(5	)
Investment income before BOLI	$	501		$	537		$	608		$	570		$	526		$	492		$	465		$	445		$	421		$	410

*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

(Dollars in millions except per share data)	Three months ended																						Six months ended						Nine months ended						Twelve months ended
	12/31/09		9/30/09			6/30/09			3/31/09			12/31/08		9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09			9/30/08			12/31/09			12/31/08

Net income (loss)	$	245	$	171		$	(19	)	$	35		$	161	$	247		$	63		$	(42	)	$	17		$	21		$	187		$	268		$	432		$	429
Net realized investment gains and losses		159		75			(14	)		(2	)		69		173			(6	)		(151	)		(15	)		(157	)		58			16			217			85
Operating income (loss)		86		96			(5	)		37			92		74			69			109			32			178			129			252			215			344
Less catastrophe losses		8		(4	)		(77	)		(34	)		10		(41	)		(74	)		(28	)		(111	)		(101	)		(115	)		(142	)		(107	)		(132	)
Operating income before catastrophe losses	$	78	$	100		$	72		$	71		$	82	$	115		$	143		$	137		$	143		$	279		$	244		$	394		$	322		$	476

Diluted per share data
Net income (loss)	$	1.50	$	1.05		$	(0.12	)	$	0.22		$	0.99	$	1.50		$	0.38		$	(0.26	)	$	0.10		$	0.13		$	1.15		$	1.64		$	2.65		$	2.62
Net realized investment gains and losses		0.97		0.46			(0.09	)		(0.01	)		0.42		1.05			(0.04	)		(0.92	)		(0.10	)		(0.95	)		0.36			0.10			1.33			0.52
Operating income (loss)		0.53		0.59			(0.03	)		0.23			0.57		0.45			0.42			0.66			0.20			1.08			0.79			1.54			1.32			2.10
Less catastrophe losses		0.05		(0.03	)		(0.47	)		(0.21	)		0.06		(0.25	)		(0.45	)		(0.17	)		(0.68	)		(0.62	)		(0.71	)		(0.87	)		(0.66	)		(0.81	)
Operating income before catastrophe losses	$	0.48	$	0.62		$	0.44		$	0.44		$	0.51	$	0.70		$	0.87		$	0.83		$	0.88		$	1.70		$	1.50		$	2.41		$	1.98		$	2.91

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 Insurance Subsidiaries

Selected Balance Sheet Data


(Dollars in millions)	12/31/2009		9/30/2009		6/30/2009			3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Cincinnati Insurance Consolidated (including CSU)
Fixed maturities (fair value)	$	5,663	$	5,521	$	5,169		$	4,804		$	4,309		$	4,183		$	4,304		$	4,351
Equities (fair value)		1,910		2,477		2,247			1,986			2,432			3,210			3,537			4,226
Short-term investments (fair value)		5		10		11			13			19			162			-			51
Fixed maturities - pretax net unrealized gain (loss)		242		301		25			(36	)		(108	)		(132	)		(33	)		39
Equities - pretax net unrealized gain		592		594		487			347			627			1,012			1,227			1,831
Loss and loss expense reserves - STAT		3,639		3,656		3,674			3,555			3,494			3,507			3,534			3,448
Equity GAAP		4,405		4,283		3,795			3,512			3,667			3,947			4,011			4,498
Surplus - STAT		3,648		3,472		3,241			3,105			3,360			3,687			3,650			4,027

The Cincinnati Life Insurance Company
Fixed maturities (fair value)	$	1,927	$	1,868	$	1,694		$	1,534		$	1,467		$	1,483		$	1,551		$	1,534
Equities (fair value)		108		123		103			89			122			200			265			307
Short-term investments (fair value)		-		1		1			-			-			-			-			-
Fixed maturities - pretax net unrealized gain (loss)		72		67		(43	)		(94	)		(115	)		(79	)		(35	)		-
Equities - pretax net unrealized gain (loss)		1		11		(8	)		(27	)		(7	)		61			92			127
Equity - GAAP		666		653		563			454			471			530			617			661
Surplus - STAT		300		283		270			254			290			371			420			453

	12/31/2007		9/30/2007		6/30/2007			3/31/2007		12/31/2006		9/30/2006		6/30/2006			3/31/2006
Cincinnati Insurance Consolidated (including CSU)
Fixed maturities (fair value)	$	4,295	$	4,366	$	4,367		$	4,362	$	4,296	$	4,258	$	4,160		$	4,189
Equities (fair value)		4,595		5,201		5,411			5,472		5,494		5,134		4,827			4,946
Short-term investments (fair value)		50		19		72			3		92		-		-			126
Fixed maturities - pretax net unrealized gain (loss)		58		23		(30	)		44		47		51		(55	)		2
Equities - pretax net unrealized gain		2,077		2,657		2,917			3,017		3,166		2,859		2,621			2,758
Loss and loss expense reserves - STAT		3,398		3,461		3,374			3,373		3,356		3,314		3,237			3,169
Equity GAAP		4,784		5,282		5,404			5,272		5,261		5,073		4,702			4,730
Surplus - STAT		4,307		4,782		4,937			4,741		4,723		4,607		4,342			4,334

The Cincinnati Life Insurance Company
Fixed maturities (fair value)	$	1,465	$	1,475	$	1,415		$	1,384	$	1,381	$	1,399	$	1,344		$	1,338
Equities (fair value)		371		459		478			539		532		494		458			470
Short-term investments (fair value)		51		18		29			16		3		-		-			20
Fixed maturities - pretax net unrealized gain (loss)		6		4		(4	)		20		15		17		(17	)		6
Equities - pretax net unrealized gain (loss)		162		225		254			305		307		271		238			256
Equity - GAAP		685		724		730			739		719		688		652			666
Surplus - STAT		477		485		491			483		479		461		459			470

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)	2009			2008			Change			% Change			2009			2008			Change			% Change
Underwriting income
Net premiums written	$	680		$	717		$	(37	)		(5.1	)	$	2,911		$	3,009		$	(98	)		(3.2	)
Unearned premiums increase		(33	)		(30	)		(2	)		8.3			-			(1	)		1		nm
Earned premiums	$	713		$	747		$	(34	)		(4.6	)	$	2,911		$	3,010		$	(99	)		(3.3	)

Losses incurred	$	356		$	383		$	(27	)		(7.0	)	$	1,706		$	1,736		$	(30	)		(1.7	)
Allocated loss expenses incurred		53			26			27			100.5			183			115			68			58.7
Unallocated loss expenses incurred		55			65			(11	)		(16.2	)		197			205			(9	)		(4.3	)
Other underwriting expenses incurred		227			259			(32	)		(12.3	)		936			956			(20	)		(2.1	)
Workers compensation dividend incurred		4			4			-		nm				17			9			8			96.9

Total underwriting deductions	$	695		$	738		$	(43	)		(5.9	)	$	3,039		$	3,021		$	18			0.6
Net underwriting gain (loss)	$	18		$	9		$	8			87.9		$	(128	)	$	(11	)	$	(117	)	nm

Investment income
Gross investment income earned	$	91		$	84		$	7			7.8		$	346		$	355		$	(9	)		(2.4	)
Net investment income earned		90			83			7			8.4			341			349			(8	)		(2.4	)
Net realized capital gains		127			(31	)		157		nm				143			46			97			211.2
Net investment gains (excl. subs)	$	217		$	52		$	164			318.3		$	484		$	395		$	89			22.4
Dividend from subsidiary		-			-			-			-			-			-			-			-
Net investment gains (net of tax)	$	217		$	52		$	164			318.3		$	484		$	395		$	89			22.4

Other income	$	(9	)	$	1		$	(9	)	nm			$	(5	)	$	2		$	(7	)	nm

Net income before federal income taxes	$	226		$	62		$	163			265.5		$	351		$	386		$	(35	)		(8.8	)
Federal and foreign income taxes incurred	$	7		$	45		$	(38	)		(84.9	)	$	1		$	212		$	(211	)		(99.6	)
Net income (statutory)	$	219		$	17		$	201		nm			$	350		$	174		$	176			100.3

*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 22 for adjusted data)

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09			9/30/08			12/31/09			12/31/08
Net premiums written	$	680		$	730		$	723		$	778		$	717		$	727		$	790		$	776		$	1,501		$	1,566		$	2,231		$	2,292		$	2,911		$	3,010
Net premiums earned	$	713		$	733		$	733		$	732		$	747		$	751		$	761		$	751		$	1,465		$	1,512		$	2,198		$	2,263		$	2,911		$	3,010

Losses paid	$	381		$	390		$	412		$	401		$	383		$	467		$	396		$	383		$	813		$	778		$	1,203		$	1,245		$	1,584		$	1,629
Loss reserve change		(25	)		(22	)		112			56			(1	)		(11	)		83			35			169			119			147			108			122			107
Total losses incurred	$	356		$	368		$	524		$	457		$	382		$	456		$	479		$	418		$	982		$	897		$	1,350		$	1,353		$	1,706		$	1,736
Allocated loss expense paid		42			37			42			30			39			35			32			25			71			58			108			93			150			131
Allocated loss expense reserve change		11			8			7			6			(12	)		(16	)		1			12			14			12			22			(4	)		33			(16	)
Total allocated loss expense incurred	$	53		$	45		$	49		$	36		$	27		$	19		$	33		$	37		$	85		$	70		$	130		$	89		$	183	��	$	115
Unallocated loss expense paid		54			46			42			48			62			47			43			43			91			86			137			133			190			195
Unallocated loss expense reserve change		1			-			4			2			3			1			3			3			5			6			6			7			7			10
Total unallocated loss expense incurred	$	55		$	46		$	46		$	50		$	65		$	48		$	46		$	46		$	96		$	92		$	143		$	140		$	197		$	205
Underwriting expenses incurred		231			250			232			240			264			241			223			238			472			460			721			701			953			971
Underwriting (loss) profit	$	18		$	24		$	(118	)	$	(51	)	$	9		$	(13	)	$	(20	)	$	12		$	(170	)	$	(7	)	$	(146	)	$	(20	)	$	(128	)	$	(17	)

Ratio Data
Loss ratio		49.9	%		50.2	%		71.6	%		62.5	%		51.2	%		60.8	%		63.0	%		55.6	%		67.0	%		59.3	%		61.4	%		59.8	%		58.6	%		57.7	%
Allocated loss expense ratio		7.4			6.1			6.7			4.9			3.5			2.5			4.3			5.0			5.8			4.6			5.9			3.9			6.3			3.8
Unallocated loss expense ratio		7.7			6.4			6.3			6.8			8.7			6.4			6.1			6.1			6.6			6.1			6.5			6.2			6.8			6.8
Net underwriting expense ratio		34.1			34.2			32.0			30.9			36.8			33.1			28.1			30.6			31.4			29.3			32.4			30.6			32.7			32.1
Statutory combined ratio		99.1	%		96.9	%		116.6	%		105.1	%		100.2	%		102.8	%		101.5	%		97.3	%		110.8	%		99.3	%		106.2	%		100.5	%		104.4	%		100.4	%
Statutory combined ratio excluding catastrophes		100.8	%		96.0	%		100.5	%		97.9	%		102.3	%		94.4	%		86.6	%		91.5	%		99.2	%		89.0	%		98.1	%		90.8	%		98.7	%		93.6	%

Loss Detail
New losses greater than $4,000,000	$	9		$	18		$	20		$	9		$	10		$	10		$	18		$	-		$	30		$	26		$	48		$	36		$	57		$	46
New losses $1,000,000-$4,000,000		37			43			39			28			41			50			42			44			67			78			110			128			147			169
New losses $250,000-$1,000,000		48			55			47			62			63			63			53			49			109			102			164			165			212			228
Case reserve development above $250,000		89			51			70			56			82			59			54			49			125			103			177			162			265			245
Large losses subtotal	$	183		$	167		$	176		$	155		$	196		$	182		$	167		$	142		$	331		$	309		$	499		$	491		$	681		$	688
IBNR incurred		19			12			39			18			(16	)		(6	)		(6	)		6			57			-			69			(6	)		89			(22	)
Catastrophe losses incurred		(12	)		7			118			53			(16	)		63			113			43			171			156			177			219			165			203
Remaining incurred		166			182			191			231			218			217			205			227			423			432			605			649			771			867
Total losses incurred	$	356		$	368		$	524		$	457		$	382		$	456		$	479		$	418		$	982		$	897		$	1,350		$	1,353		$	1,706		$	1,736

Loss Ratio
New losses greater than $4,000,000		1.3	%		2.5	%		2.8	%		1.3	%		1.3	%		1.3	%		2.4	%		0.0	%		2.0	%		1.7	%		2.2	%		1.6	%		2.0	%		1.5	%
New losses $1,000,000-$4,000,000		5.2			5.9			5.3			3.8			5.4			6.6			5.5			5.8			4.5			5.2			5.0			5.5			5.1			5.6
New losses $250,000-$1,000,000		6.7			7.5			6.4			8.4			8.4			8.4			7.0			6.5			7.5			6.7			7.4			7.4			7.3			7.6
Case reserve development above $250,000		12.4			7.0			9.6			7.6			11.0			7.9			7.1			6.5			8.5			6.9			8.0			7.2			9.0			8.1
Large losses subtotal		25.6	%		22.9	%		24.1	%		21.1	%		26.1	%		24.2	%		22.0	%		18.8	%		22.5	%		20.5	%		22.6	%		21.7	%		23.4	%		22.8	%
IBNR incurred		2.7			1.7			5.3			2.5			(2.1	)		(0.8	)		(0.9	)		0.8			3.9			0.0			3.2			(0.3	)		3.0			(0.7	)
Total catastrophe losses incurred		(1.7	)		0.9			16.1			7.2			(2.1	)		8.4			14.9			5.7			11.6			10.3			8.1			9.7			5.7			6.8
Remaining incurred		23.3			24.7			26.1			31.7			29.3			29.0			27.0			30.2			29.0			28.5			27.5			28.7			26.5			28.8
Total loss ratio		49.9	%		50.2	%		71.6	%		62.5	%		51.2	%		60.8	%		63.0	%		55.5	%		67.0	%		59.3	%		61.4	%		59.8	%		58.6	%		57.7	%

Loss Claim Count
New losses greater than $4,000,000		2			4			4			2			2			2			5			2			6			7			10			9			12			11
New losses $1,000,000-$4,000,000		19			26			22			16			24			33			21			24			38			45			64			78			83			102
New losses $250,000-$1,000,000		107			130			114			149			147			145			122			118			263			240			393			385			500			532
Case reserve development above $250,000		122			81			108			89			146			102			84			81			197			165			278			267			400			413
Large losses total		250			241			248			256			319			282			232			225			504			457			745			739			995			1,058

*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 - Commercial Lines

Statutory Quarterly Analysis

(Based on reported data - see Page 23 for adjusted data)

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09			9/30/08			12/31/09			12/31/08
Net premiums written	$	503		$	528		$	524		$	626		$	552		$	538		$	597		$	625		$	1,149		$	1,222		$	1,678		$	1,759		$	2,181		$	2,311
Net premiums earned	$	532		$	555		$	556		$	557		$	573		$	582		$	586		$	574		$	1,112		$	1,161		$	1,667		$	1,743		$	2,199		$	2,316

Losses paid	$	267		$	267		$	275		$	271		$	262		$	326		$	280		$	266		$	546		$	546		$	813		$	871		$	1,080		$	1,133
Loss reserve change		-			(11	)		92			50			26			(3	)		67			32			142			100			131			97			131			123
Total losses incurred	$	267		$	256		$	367		$	321		$	288		$	323		$	347		$	298		$	688		$	646		$	944		$	968		$	1,211		$	1,256
Allocated loss expense paid		38			33			39			26			35			31			28			22			64			50			97			82			134			116
Allocated loss expense reserve change		9			7			5			6			(13	)		(15	)		1			12			11			13			18			(3	)		27			(16	)
Total allocated loss expense incurred	$	47		$	40		$	44		$	32		$	22		$	16		$	29		$	34		$	75		$	63		$	115		$	79		$	161		$	100
Unallocated loss expense paid		38			33			28			34			42			34			31			30			62			61			95			95			134			137
Unallocated loss expense reserve change		4			-			3			2			7			(1	)		1			3			5			4			5			4			9			10
Total unallocated loss expense incurred	$	42		$	33		$	31		$	36		$	49		$	33		$	32		$	33		$	67		$	65		$	100		$	99		$	143		$	147
Underwriting expenses incurred		177			188			170			183			204			180			166			186			353			352			541			532			718			742
Underwriting (loss) profit	$	(1	)	$	38		$	(56	)	$	(15	)	$	10		$	30		$	12		$	23		$	(71	)	$	35		$	(33	)	$	65		$	(34	)	$	71

Ratio Data
Loss ratio		50.2	%		46.2	%		66.0	%		57.6	%		50.3	%		55.4	%		59.2	%		52.0	%		61.8	%		55.6	%		56.7	%		55.5	%		55.1	%		54.2	%
Allocated loss expense ratio		8.7			7.1			7.8			5.8			3.8			2.7			5.0			5.9			6.8			5.4			6.9			4.5			7.3			4.3
Unallocated loss expense ratio		7.9			6.0			5.7			6.4			8.4			5.7			5.5			5.7			6.0			5.7			6.0			5.7			6.5			6.4
Net underwriting expense ratio		35.1			35.6			32.5			29.2			36.5			33.5			27.8			29.7			30.8			28.8			32.2			30.2			32.9			31.7
Statutory combined ratio		102.0	%		94.9	%		112.0	%		99.0	%		99.0	%		97.3	%		97.5	%		93.3	%		105.4	%		95.5	%		101.8	%		95.9	%		101.8	%		96.6	%
Statutory combined ratio excluding catastrophes		103.8	%		96.1	%		101.7	%		96.5	%		100.5	%		93.3	%		86.2	%		89.4	%		99.0	%		87.8	%		98.0	%		89.5	%		99.3	%		92.2	%

Loss Detail
New losses greater than $4,000,000	$	9		$	13		$	21		$	9		$	10		$	5		$	18		$	-		$	30		$	26		$	43		$	31		$	52		$	41
New losses $1,000,000-$4,000,000		34			33			37			26			37			43			40			40			62			73			96			116			130			153
New losses $250,000-$1,000,000		35			44			38			47			49			51			45			40			86			84			129			135			164			184
Case reserve development above $250,000		83			49			63			51			76			57			51			44			114			96			163			153			245			229
Large losses subtotal	$	161		$	139		$	159		$	133		$	172		$	156		$	154		$	124		$	292		$	279		$	431		$	435		$	591		$	607
IBNR incurred		28			11			38			18			(12	)		(7	)		(8	)		6			56			(2	)		67			(10	)		95			(22	)
Catastrophe losses incurred		(10	)		(7	)		57			14			(9	)		23			66			22			71			89			64			112			55			103
Remaining incurred		88			113			113			156			137			151			135			146			269			280			382			431			470			568
Total losses incurred	$	267		$	256		$	367		$	321		$	288		$	323		$	347		$	298		$	688		$	646		$	944		$	968		$	1,211		$	1,256

Loss Ratio
New losses greater than $4,000,000		1.7	%		2.4	%		3.7	%		1.7	%		1.8	%		0.9	%		3.1	%		0.0	%		2.7	%		2.3	%		2.6	%		1.8	%		2.4	%		1.8	%
New losses $1,000,000-$4,000,000		6.4			6.1			6.5			4.7			6.3			7.4			6.8			7.1			5.6			6.3			5.8			6.6			5.9			6.6
New losses $250,000-$1,000,000		6.5			7.8			7.0			8.4			8.6			8.7			7.7			6.8			7.7			7.2			7.8			7.7			7.5			8.0
Case reserve development above $250,000		15.5			8.8			11.4			9.1			13.2			9.8			8.7			7.8			10.3			8.3			9.8			8.8			11.1			9.9
Large losses subtotal		30.1	%		25.1	%		28.6	%		23.9	%		29.9	%		26.8	%		26.3	%		21.7	%		26.3	%		24.0	%		26.0	%		24.9	%		26.9	%		26.3	%
IBNR incurred		5.3			2.0			6.7			3.3			(2.1	)		(1.3	)		(1.4	)		1.0			5.0			(0.2	)		4.0			(0.6	)		4.3			(0.9	)
Total catastrophe losses incurred		(1.8	)		(1.2	)		10.3			2.5			(1.5	)		4.0			11.3			3.9			6.4			7.7			3.8			6.4			2.5			4.5
Remaining incurred		16.6			20.3			20.4			27.9			24.0			25.9			23.0			25.4			24.1			24.2			22.9			24.8			21.4			24.3
Total loss ratio		50.2	%		46.2	%		66.0	%		57.6	%		50.3	%		55.4	%		59.2	%		52.0	%		61.8	%		55.7	%		56.7	%		55.5	%		55.1	%		54.2	%

Loss Claim Count
New losses greater than $4,000,000		2			3			4			2			2			1			4			2			6			4			9			7			11			9
New losses $1,000,000-$4,000,000		17			20			19			15			21			27			21			21			34			36			54			69			71			90
New losses $250,000-$1,000,000		77			101			92			112			115			113			101			93			204			227			305			307			382			422
Case reserve development above $250,000		108			74			93			77			129			95			76			74			170			206			244			245			352			374
Large losses total		204			198			208			206			267			236			202			190			414			473			612			628			816			895

*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 24 for adjusted data)

(Dollars in millions)	Three months ended																									Six months ended						Nine months ended						Twelve months ended
		12/31/09			9/30/09			6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09			9/30/08			12/31/09			12/31/08
Net premiums written		$	167		$	190		$	190		$	145		$	160		$	184		$	191		$	150		$	334		$	341		$	524		$	525		$	691		$	685
Net premiums earned		$	172		$	170		$	172		$	171		$	171		$	167		$	174		$	177		$	343		$	351		$	513		$	518		$	685		$	689

Losses paid		$	112		$	121		$	137		$	130		$	123		$	141		$	116		$	116		$	267		$	232		$	389		$	373		$	501		$	496
Loss reserve change			(27	)		(14	)		18			4			(31	)		(8	)		16			3			22			19			7			11			(20	)		(20	)
Total losses incurred		$	85		$	107		$	155		$	134		$	92		$	133		$	132		$	119		$	289		$	251		$	396		$	384		$	481		$	476
Allocated loss expense paid			5			4			4			3			4			4			4			3			7			7			11			11			15			15
Allocated loss expense reserve change			-			-			-			-			1			(1	)		(1	)		-			-			-			-			(1	)		1			(1	)
Total allocated loss expense incurred		$	5		$	4		$	4		$	3		$	5		$	3		$	3		$	3		$	7		$	7		$	11		$	10		$	16		$	14
Unallocated loss expense paid			14			14			14			15			19			13			13			13			28			25			41			38			56			57
Unallocated loss expense reserve change			(2	)		-			1			-			(3	)		1			1			1			-			2			1			3			(2	)		1
Total unallocated loss expense incurred		$	12		$	14		$	15		$	15		$	16		$	14		$	14		$	14		$	28		$	27		$	42		$	41		$	54		$	58
Underwriting expenses incurred			50			56			56			51			58			56			55			51			108			106			163			162			214			224
Underwriting loss		$	20		$	(11	)	$	(58	)	$	(32	)	$	-		$	(39	)	$	(30	)	$	(10	)	$	(89	)	$	(40	)	$	(100	)	$	(79	)	$	(80	)	$	(83	)

Ratio Data
Loss ratio			49.4	%		63.1	%		90.1	%		78.3	%		53.6	%		79.7	%		75.6	%		67.4	%		84.2	%		71.5	%		77.1	%		74.1	%		70.2	%		69.0	%
Allocated loss expense ratio			2.7			2.4			2.4			1.9			2.7			1.8			1.9			1.9			2.2			1.9			2.2			1.9			2.4			2.1
Unallocated loss expense ratio			7.1			7.8			8.2			8.3			9.6			8.7			7.9			7.4			8.3			7.6			8.1			8.0			7.8			8.3
Net underwriting expense ratio			30.2			29.5			29.8			35.4			36.2			30.4			28.9			34.1			32.1			31.2			31.2			30.9			31.0			32.2
Statutory combined ratio			89.4	%		102.8	%		130.5	%		123.9	%		102.1	%		120.6	%		114.3	%		110.8	%		126.8	%		112.2	%		118.7	%		114.9	%		111.3	%		111.6	%
Statutory combined ratio excluding catastrophes			90.8	%		94.9	%		95.1	%		101.3	%		106.2	%		96.8	%		87.3	%		99.2	%		97.8	%		92.9	%		96.7	%		94.2	%		95.3	%		97.1	%

Loss Detail
New losses greater than $4,000,000		$	-		$	5		$	-		$	-		$	-		$	5		$	-		$	-		$	-		$	-		$	5		$	5		$	5		$	5
New losses $1,000,000-$4,000,000			3			10			3			1			4			6			2			4			5			5			15			12			17			16
New losses $250,000-$1,000,000			13			12			8			15			15			12			8			10			22			19			34			30			48			44
Case reserve development above $250,000			5			2			7			5			6			2			3			4			12			7			14			9			19			16
Large losses subtotal		$	21		$	29		$	18		$	21		$	25		$	25		$	13		$	18		$	39		$	31		$	68		$	56		$	89		$	81
IBNR incurred			(10	)		-			-			(1	)		(4	)		2			2			-			(1	)		2			(1	)		4			(11	)		-
Catastrophe losses incurred			(2	)		13			61			39			(7	)		40			47			21			100			67			113			107			111			100
Remaining incurred			76			65			76			75			78			66			70			80			151			151			216			217			292			295
Total losses incurred		$	85		$	107		$	155		$	134		$	92		$	133		$	132		$	119		$	289		$	251		$	396		$	384		$	481		$	476

Loss Ratio
New losses greater than $4,000,000			0.0	%		2.9	%		0.0	%		0.0	%		0.0	%		3.0	%		0.0	%		0.0	%		0.0	%		0.0	%		1.0	%		1.0	%		0.7	%		0.7	%
New losses $1,000,000-$4,000,000			1.6			5.7			1.9			0.8			2.4			3.8			1.1			2.1			1.4			1.6			2.8			2.3			2.5			2.3
New losses $250,000-$1,000,000			7.5			7.0			4.8			8.6			8.3			7.1			4.8			5.5			6.7			5.2			6.7			5.8			6.9			6.4
Case reserve development above $250,000			3.2			1.3			3.7			3.0			3.8			1.4			1.5			2.5			3.3			1.9			2.7			1.7			2.9			2.3
Large losses subtotal			12.3	%		16.9	%		10.4	%		12.4	%		14.5	%		15.3	%		7.5	%		10.1	%		11.4	%		8.7	%		13.2	%		10.8	%		13.0	%		11.7	%
IBNR incurred			(5.7	)		(0.2	)		0.1			(0.6	)		(2.3	)		1.0			0.9			0.2			(0.3	)		0.6			(0.3	)		0.7			(1.6	)		0.0
Total catastrophe losses incurred			(1.4	)		7.9			35.4			22.6			(4.1	)		23.8			27.0			11.6			29.0			19.3			22.0			20.7			16.1			14.5
Remaining incurred			44.2			38.5			44.2			43.9			45.5			39.6			40.2			45.6			44.1			42.9			42.2			41.9			42.7			42.8
Total loss ratio			49.4	%		63.1	%		90.1	%		78.3	%		53.6	%		79.7	%		75.6	%		67.5	%		84.2	%		71.5	%		77.1	%		74.1	%		70.2	%		69.0	%

Loss Claim Count
New losses greater than $4,000,000			-			1			-			-			-			1			-			-			-			-			1			1			1			1
New losses $1,000,000-$4,000,000			2			6			3			1			3			6			1			3			4			4			10			10			12			13
New losses $250,000-$1,000,000			29			29			22			37			32			32			21			25			59			69			88			78			117			110
Case reserve development above $250,000			13			7			15			12			17			7			8			7			27			29			34			22			47			39
Large losses total			44			43			40			50			52			46			30			35			90			102			133			111			177			163

*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, 2009

(Dollars in millions)	Standard Market																				Surplus Lines						Standard Market						*Consolidated
	Commercial Lines														Personal Lines						Commercial		Consolidated				Commercial			Personal			Total
	Comm		Comm		Comm		Workers'		Specialty		Surety &		Mach. &		Pers		Home		Other		Casualty		2009		2008		Change			Change			Change
Risk State	Casualty		Prop		Auto		Comp		Packages		Exec Risk		Equip		Auto		Owner		Personal		& Prop		Total		Total		%			%			%

AL	$	17.6	$	17.9	$	7.9	$	1.0	$	8.3	$	2.4	$	0.8	$	16.3	$	25.3	$	5.5	$	1.0	$	104.0	$	103.3		(0.9	)		0.8			0.6
AZ		10.4		6.3		9.8		0.8		1.0		0.9		0.5		0.7		0.7		0.3		0.3		31.7		34.0		(11.0	)		270.0			(6.7	)
AR		8.9		10.2		5.7		3.7		4.2		1.8		0.5		2.7		3.0		1.0		0.8		42.5		44.1		(7.6	)		9.5			(3.7	)
CO		0.5		0.5		0.5		0.3		-		0.2		-		-		0.2		-		0.1		2.4		2.0		25.0			3.4			25.1
DE		2.1		1.4		1.3		2.5		0.3		0.1		0.1		-		-		-		-		7.8		5.5		42.6			219.7			42.6
FL		22.6		22.4		9.2		1.1		2.0		2.3		0.9		10.4		16.1		3.0		0.1		90.2		106.5		(17.7	)		(10.5	)		(15.3	)
GA		24.1		21.0		17.5		11.5		7.5		6.6		1.1		30.6		27.9		8.3		3.1		159.1		159.2		(2.9	)		1.4			(0.1	)
ID		9.2		4.9		5.1		0.2		0.8		1.1		0.3		0.3		0.2		0.1		0.2		22.5		22.3		(2.7	)	nm				0.9
IL		60.5		44.0		28.4		51.6		13.4		6.9		3.1		24.6		19.2		6.6		3.8		262.2		283.5		(10.4	)		3.3			(7.5	)
IN		42.1		35.9		22.3		26.3		8.4		6.9		2.4		27.0		25.4		7.1		4.9		208.7		216.3		(6.1	)		(0.6	)		(3.5	)
IA		19.5		14.9		9.5		22.6		4.4		2.8		1.3		3.4		3.6		1.7		0.4		84.1		87.5		(4.2	)		(5.3	)		(4.0	)
KS		7.4		8.4		4.4		8.2		3.2		1.8		0.5		4.2		5.2		1.2		0.4		45.0		43.7		2.8			(0.4	)		3.0
KY		20.8		21.1		13.4		3.3		5.9		4.0		1.0		20.7		16.0		4.5		1.5		112.2		109.8		(0.9	)		3.9			2.2
MD		13.2		6.6		10.9		9.8		1.2		1.4		0.4		0.3		1.7		0.6		0.8		46.9		47.3		(3.6	)		19.9			(1.0	)
MI		30.7		21.7		13.9		14.8		11.9		6.4		1.9		11.4		13.9		3.3		2.2		132.2		139.4		(8.0	)		0.3			(5.2	)
MN		19.6		16.0		8.2		6.9		3.4		2.5		1.3		6.3		5.5		3.3		1.4		74.4		76.9		(7.4	)		7.1			(3.2	)
MO		20.8		19.9		13.5		14.1		6.0		3.0		1.3		3.1		4.6		1.1		2.0		89.4		91.2		(5.6	)		15.6			(1.9	)
MT		12.3		7.0		6.7		0.1		1.0		0.5		0.5		1.1		1.0		0.2		0.3		30.9		30.5		(3.7	)		96.0			1.2
NE		6.0		5.7		3.2		7.0		1.4		0.9		0.5		0.8		0.9		0.3		0.3		27.1		28.8		(7.0	)		(4.0	)		(5.8	)
NH		2.7		1.9		1.3		2.4		0.8		0.6		0.1		0.6		0.7		0.3		0.3		11.7		11.2		3.0			(0.4	)		4.5
NM		2.6		1.0		1.4		0.6		0.1		0.7		0.1		-		-		-		0.2		6.8		3.8		69.8			8.1			74.7
NY		30.7		9.4		11.7		2.4		1.3		2.8		0.7		-		-		-		0.5		59.6		54.1		9.2			(0.1	)		10.1
NC		32.4		27.4		20.0		24.4		13.1		7.7		1.8		5.9		5.3		3.4		1.9		143.4		151.8		(12.6	)		146.7			(5.5	)
ND		4.9		3.8		2.6		-		0.9		0.7		0.3		0.5		0.5		0.2		0.1		14.4		14.8		(3.6	)		2.7			(2.5	)
OH		139.3		90.0		61.0		-		20.9		23.0		5.1		119.8		85.1		31.4		5.4		580.6		611.8		(5.8	)		(5.1	)		(5.1	)
PA		43.4		29.1		27.8		46.2		9.5		5.7		1.8		7.2		5.8		3.5		1.4		181.5		190.2		(5.6	)		(2.2	)		(4.6	)
SC		11.3		8.1		6.8		4.9		2.4		2.4		0.4		0.5		0.4		0.3		0.6		38.1		43.2		(15.2	)		280.5			(11.7	)
SD		3.5		2.2		1.6		3.4		0.5		0.7		0.1		-		-		-		0.1		12.2		14.7		(17.8	)		(12.9	)		(17.2	)
TN		21.3		18.8		13.2		9.6		9.1		4.9		1.2		8.6		8.9		3.3		1.1		100.0		103.1		(5.7	)		3.0			(3.0	)
TX		5.3		5.5		3.0		1.8		0.3		0.5		0.4		-		-		-		0.8		17.7		5.2		224.0			94.7			239.8
UT		11.4		5.6		6.4		0.1		0.6		2.3		0.4		1.4		0.5		0.1		1.1		30.0		27.8		(2.1	)	nm				7.8
VT		4.8		4.1		2.9		5.5		1.1		0.9		0.3		0.7		0.9		0.3		0.4		21.8		23.3		(8.2	)		(4.5	)		(6.5	)
VA		28.8		22.5		18.0		17.2		4.9		6.3		1.3		9.1		7.6		3.0		1.4		120.3		130.7		(10.1	)		(1.4	)		(8.0	)
WA		2.2		1.0		1.3		-		-		0.2		0.1		-		-		-		0.4		5.1		1.6		194.2			16.6			220.7
WV		7.6		5.1		4.7		0.8		2.4		1.2		0.4		-		0.6		0.2		1.0		23.8		22.9		0.9			(8.1	)		3.9
WI		25.6		16.3		11.2		24.6		4.3		2.5		1.7		8.3		7.0		3.4		1.5		106.4		110.1		(4.2	)		(4.1	)		(3.4	)
WY		0.9		0.2		0.1		-		-		0.1		-		-		-		-		-		1.4		0.9		52.6			32.2			52.4
All Other		2.8		2.5		2.8		3.9		0.3		1.4		0.1		-		0.1		-		-		13.7		12.9		6.5			6.5			6.5
Total	$	729.7	$	540.3	$	389.5	$	333.7	$	156.8	$	117.4	$	34.6	$	326.6	$	294.2	$	97.3	$	41.6	$	3,061.7	$	3,166.3		(5.6	)		0.6			(3.3	)
Other Direct		-		1.3		-		3.5		-		-		-		-		2.3		-		-		7.2		11.6		(47.4	)		(2.1	)		(38.2	)
Total Direct	$	729.7	$	541.6	$	389.5	$	337.2	$	156.8	$	117.4	$	34.6	$	326.6	$	296.5	$	97.3	$	41.6	$	3,068.9	$	3,177.9		(5.7	)		0.6			(3.4	)

Surplus direct premiums written were $41.6 million and $14.4 million for the twelve months ended December 31, 2009 and 2008, respectively.

*Consolidated change consists of commercial lines, personal lines and E&S.

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

Quarterly Property Casualty Data - Commercial Lines

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09			9/30/08			12/31/09			12/31/08
Commercial casualty:
Written premiums	$	156		$	168		$	171		$	209		$	183		$	171		$	199		$	211		$	379		$	410		$	548		$	582		$	704		$	764
Earned premiums		166			180			180			187			183			196			194			190			366			384			546			580			712			763
Loss and loss expenses ratio		64.7	%		45.0	%		54.2	%		55.2	%		23.9	%		44.4	%		39.8	%		58.3	%		54.7	%		48.9	%		51.5	%		47.4	%		54.6	%		41.7	%
Less catastrophe loss ratio		-			-			-			-			-			-			-			-			-			-			-			-			-			-
Loss and loss expenses excluding catastrophe loss ratio		64.7	%		45.0	%		54.2	%		55.2	%		23.9	%		44.4	%		39.8	%		58.3	%		54.7	%		48.9	%		51.5	%		47.4	%		54.6	%		41.7	%

Commercial property:
Written premiums	$	115		$	124		$	113		$	132		$	117		$	117		$	124		$	124		$	245		$	247		$	370		$	364		$	485		$	481
Earned premiums		122			122			120			121			122			120			123			122			241			244			362			364			485			487
Loss and loss expenses ratio		34.9	%		42.8	%		88.3	%		69.0	%		47.2	%		70.0	%		97.6	%		75.5	%		78.6	%		86.6	%		66.6	%		81.1	%		58.6	%		72.6	%
Less catastrophe loss ratio		(5.1	)		0.6			23.5			7.4			(5.3	)		15.6			38.0			16.5			15.4			27.3			10.4			23.4			6.6			16.2
Loss and loss expenses excluding catastrophe loss ratio		40.0	%		42.2	%		64.8	%		61.6	%		52.5	%		54.4	%		59.6	%		59.0	%		63.2	%		59.3	%		56.2	%		57.7	%		52.1	%		56.4	%

Commercial auto:
Written premiums	$	93		$	92		$	94		$	110		$	94		$	93		$	108		$	107		$	204		$	215		$	296		$	308		$	388		$	402
Earned premiums		98			99			98			99			103			103			104			101			197			205			296			308			394			411
Loss and loss expenses ratio		69.3	%		67.9	%		62.5	%		59.7	%		94.8	%		63.2	%		67.5	%		63.4	%		61.1	%		65.5	%		63.4	%		64.7	%		64.9	%		72.3	%
Less catastrophe loss ratio		0.4			(0.8	)		3.3			(0.1	)		(0.8	)		0.1			3.4			(0.4	)		1.6			1.5			0.8			1.0			0.7			0.6
Loss and loss expenses excluding catastrophe loss ratio		68.9	%		68.7	%		59.2	%		59.8	%		95.6	%		63.1	%		64.1	%		63.8	%		59.5	%		64.0	%		62.6	%		63.7	%		64.2	%		71.7	%

Workers' compensation:
Written premiums	$	71		$	69		$	79		$	104		$	89		$	84		$	95		$	114		$	183		$	209		$	252		$	293		$	323		$	382
Earned premiums		74			82			88			83			93			93			94			94			171			189			253			282			326			375
Loss and loss expenses ratio		137.1	%		110.2	%		130.2	%		117.5	%		128.2	%		90.9	%		78.3	%		64.8	%		124.0	%		71.5	%		119.5	%		77.9	%		123.5	%		90.4	%
Less catastrophe loss ratio		-			-			-			-			-			-			-			-			-			-			-			-			-			-
Loss and loss expenses excluding catastrophe loss ratio		137.1	%		110.2	%		130.2	%		117.5	%		128.2	%		90.9	%		78.3	%		64.8	%		124.0	%		71.5	%		119.5	%		77.9	%		123.5	%		90.4	%

Specialty package:
Written premiums	$	37		$	38		$	35		$	38		$	37		$	36		$	36		$	37		$	73		$	73		$	110		$	109		$	148		$	145
Earned premiums		37			37			37			35			36			35			36			35			72			72			110			107			147			144
Loss and loss expenses ratio		40.5	%		33.5	%		114.3	%		96.0	%		40.6	%		80.2	%		109.7	%		63.4	%		105.4	%		86.8	%		81.0	%		84.6	%		70.6	%		73.5	%
Less catastrophe loss ratio		(10.2	)		(18.2	)		68.8			13.7			(3.8	)		12.2			43.9			8.1			41.9			26.2			21.5			21.5			13.4			15.2
Loss and loss expenses excluding catastrophe loss ratio		50.7	%		51.7	%		45.5	%		82.3	%		44.4	%		68.0	%		65.8	%		55.3	%		63.5	%		60.6	%		59.5	%		63.1	%		57.2	%		58.3	%

Surety and executive risk:
Written premiums	$	23		$	28		$	25		$	25		$	24		$	29		$	28		$	25		$	50		$	54		$	78		$	82		$	101		$	107
Earned premiums		27			27			25			25			28			27			28			25			50			53			77			80			104			107
Loss and loss expenses ratio		95.7	%		85.6	%		67.0	%		30.3	%		76.5	%		73.6	%		92.0	%		45.9	%		48.8	%		70.1	%		61.7	%		71.3	%		70.5	%		72.6	%
Less catastrophe loss ratio		-			-			-			-			-			-			-			-			-			-			-			-			-			-
Loss and loss expenses excluding catastrophe loss ratio		95.7	%		85.6	%		67.0	%		30.3	%		76.5	%		73.6	%		92.0	%		45.9	%		48.8	%		70.1	%		61.7	%		71.3	%		70.5	%		72.6	%

Machinery and equipment:
Written premiums	$	8		$	9		$	7		$	8		$	8		$	8		$	7		$	7		$	15		$	14		$	24		$	22		$	32		$	30
Earned premiums		8			8			8			7			8			7			7			7			15			14			23			22			31			29
Loss and loss expense ratio		(47.6	)%		38.4	%		39.7	%		59.3	%		50.4	%		32.4	%		34.1	%		53.3	%		49.3	%		43.6	%		45.6	%		39.8	%		21.6	%		42.5	%
Less catastrophe loss ratio		(3.5	)		(0.1	)		1.2			4.5			(0.2	)		2.8			1.0			-			2.8			0.6			1.8			1.3			0.5			0.9
Loss and loss expense excluding catastrophe loss ratio		(44.1	)%		38.5	%		38.5	%		54.8	%		50.6	%		29.6	%		33.1	%		53.3	%		46.5	%		43.0	%		43.8	%		38.5	%		21.1	%		41.6	%

Quarterly Property Casualty Data - Personal Lines

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09			9/30/08			12/31/09			12/31/08
Personal auto:
Written premiums	$	77		$	90		$	89		$	68		$	73		$	88		$	89		$	69		$	157		$	158		$	246		$	246		$	324		$	320
Earned premiums		80			80			80			79			80			81			82			83			159			164			239			245			319			325
Loss and loss expenses ratio		71.8	%		64.9	%		75.7	%		63.6	%		81.0	%		63.7	%		56.8	%		67.6	%		69.7	%		62.2	%		68.1	%		62.7	%		69.0	%		67.2	%
Less catastrophe loss ratio		(0.8	)		0.6			3.1			0.3			(1.6	)		1.7			3.1			1.7			1.7			2.4			1.4			2.2			0.8			1.2
Loss and loss expenses excluding catastrophe loss ratio		72.6	%		64.3	%		72.6	%		63.3	%		82.6	%		62.0	%		53.7	%		65.9	%		68.0	%		59.8	%		66.7	%		60.5	%		68.2	%		66.0	%

Homeowner:
Written premiums	$	68		$	75		$	76		$	56		$	65		$	72		$	79		$	60		$	132		$	139		$	208		$	212		$	275		$	277
Earned premiums		69			68			70			70			69			64			71			72			140			143			207			208			276			277
Loss and loss expenses ratio		53.0	%		96.4	%		147.8	%		132.9	%		52.9	%		122.8	%		130.7	%		91.4	%		140.3	%		110.9	%		126.0	%		114.6	%		107.8	%		99.2	%
Less catastrophe loss ratio		(2.6	)		18.0			77.6			51.5			(8.5	)		54.5			60.0			25.2			64.5			42.5			49.4			46.2			36.4			32.5
Loss and loss expenses excluding catastrophe loss ratio		55.6	%		78.4	%		70.2	%		81.4	%		61.4	%		68.3	%		70.7	%		66.2	%		75.8	%		68.4	%		76.6	%		68.4	%		71.4	%		66.7	%

Other personal:
Written premiums	$	22		$	25		$	25		$	21		$	21		$	24		$	23		$	21		$	45		$	44		$	70		$	67		$	92		$	88
Earned premiums		23			22			22			22			22			22			21			22			44			44			67			65			90			87
Loss and loss expenses ratio		33.8	%		33.8	%		42.6	%		37.8	%		51.8	%		91.5	%		43.2	%		62.2	%		40.2	%		52.9	%		38.0	%		65.8	%		36.9	%		62.2	%
Less catastrophe loss ratio		0.5			3.4			18.7			11.0			0.4			14.5			8.0			4.1			14.8			6.0			11.0			8.9			8.3			6.7
Loss and loss expenses excluding catastrophe loss ratio		33.3	%		30.4	%		23.9	%		26.8	%		51.4	%		77.0	%		35.2	%		58.1	%		25.4	%		46.9	%		27.0	%		56.9	%		28.6	%		55.5	%

Consolidated Cincinnati Insurance Companies

Quarterly Detailed Loss Analysis

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09			9/30/08			12/31/09			12/31/08
All Lines
Loss and loss expenses:
Loss and loss expenses - current AY	$	549		$	542		$	529		$	482		$	610		$	566		$	532		$	467		$	1,010		$	999		$	1,553		$	1,563		$	2,102		$	2,175
Loss and loss expenses - prior AY's		(73	)		(89	)		(27	)		9			(120	)		(107	)		(87	)		(9	)		(18	)		(96	)		(107	)		(201	)		(181	)		(320	)
Catastrophes - current AY		(11	)		8			120			55			(17	)		59			113			47			175			160			183			220			172			203
Catastrophes - prior AY's		(1	)		(2	)		(2	)		(2	)		1			3			-			(4	)		(4	)		(4	)		(6	)		(1	)		(7	)		-
Total	$	464		$	459		$	620		$	544		$	474		$	521		$	558		$	501		$	1,163		$	1,059		$	1,623		$	1,581		$	2,086		$	2,058
Ratio to Earned Premiums
Loss and loss expenses :
Loss and loss expenses - current AY		77.0	%		73.9	%		72.1	%		65.8	%		81.7	%		75.3	%		69.7	%		62.2	%		69.0	%		66.0	%		70.6	%		69.1	%		72.2	%		72.2	%
Loss and loss expenses - prior AY's		(10.3	)		(12.1	)		(3.7	)		1.2			(16.2	)		(14.0	)		(11.3	)		(1.2	)		(1.2	)		(6.3	)		(4.9	)		(8.9	)		(6.2	)		(10.7	)
Catastrophes - current AY		(1.6	)		1.2			16.3			7.5			(2.0	)		8.0			15.0			6.2			11.9			10.5			8.4			9.7			5.9			6.8
Catastrophes - prior AY's		(0.1	)		(0.3	)		(0.2	)		(0.3	)		0.1			0.4			(0.1	)		(0.5	)		(0.3	)		(0.2	)		(0.3	)		0.0			(0.2	)		0.0
Total		65.0	%		62.7	%		84.5	%		74.2	%		63.6	%		69.7	%		73.3	%		66.7	%		79.4	%		70.0	%		73.8	%		69.9	%		71.7	%		68.3	%

Commercial Lines																												��
Loss and loss expenses:
Loss and loss expenses - current AY	$	423		$	407		$	403		$	363		$	464		$	437		$	416		$	354		$	766		$	770		$	1,173		$	1,208		$	1,596		$	1,672
Loss and loss expenses - prior AY's		(57	)		(71	)		(18	)		11			(97	)		(89	)		(74	)		(11	)		(7	)		(85	)		(78	)		(174	)		(135	)		(270	)
Catastrophes - current AY		(8	)		(4	)		61			17			(9	)		22			66			25			78			92			74			114			66			105
Catastrophes - prior AY's		(2	)		(3	)		(4	)		(3	)		-			1			-			(3	)		(7	)		(3	)		(10	)		(2	)		(12	)		(2	)
Total	$	356		$	329		$	442		$	388		$	358		$	371		$	408		$	365		$	830		$	774		$	1,159		$	1,146		$	1,515		$	1,505
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses - current AY		79.5	%		73.3	%		72.5	%		65.2	%		80.8	%		75.0	%		70.8	%		61.6	%		68.8	%		66.4	%		70.4	%		69.3	%		72.5	%		72.1	%
Loss and loss expenses - prior AY's		(10.8	)		(12.8	)		(3.2	)		2.1			(16.8	)		(15.2	)		(12.4	)		(1.9	)		(0.6	)		(7.3	)		(4.6	)		(10.0	)		(6.1	)		(11.7	)
Catastrophes - current AY		(1.5	)		(0.6	)		10.9			3.1			(1.3	)		3.8			11.4			4.5			7.0			7.9			4.4			6.5			3.0			4.6
Catastrophes - prior AY's		(0.3	)		(0.6	)		(0.7	)		(0.6	)		(0.2	)		0.2			(0.1	)		(0.6	)		(0.6	)		(0.3	)		(0.6	)		(0.1	)		(0.5	)		(0.1	)
Total		66.9	%		59.3	%		79.5	%		69.8	%		62.5	%		63.8	%		69.7	%		63.6	%		74.6	%		66.7	%		69.6	%		65.7	%		68.9	%		64.9	%

Personal Lines
Loss and loss expenses:
Loss and loss expenses - current AY	$	120		$	130		$	121		$	115		$	143		$	128		$	114		$	113		$	237		$	228		$	366		$	356		$	486		$	499
Loss and loss expenses - prior AY's		(16	)		(18	)		(9	)		(2	)		(23	)		(17	)		(12	)		2			(12	)		(11	)		(29	)		(28	)		(45	)		(51	)
Catastrophes - current AY		(3	)		12			59			38			(8	)		38			47			22			97			68			109			106			106			98
Catastrophes - prior AY's		1			1			2			1			1			2			-			(1	)		3			(1	)		4			1			4			2
Total	$	102		$	125		$	173		$	152		$	113		$	151		$	149		$	136		$	325		$	284		$	450		$	435		$	551		$	548
Ratio to Earned Premiums
Loss and loss expenses:
Loss and loss expenses - current AY		69.6	%		76.1	%		70.9	%		67.4	%		83.3	%		76.3	%		65.6	%		64.1	%		69.0	%		64.8	%		71.3	%		68.6	%		70.9	%		72.2	%
Loss and loss expenses - prior AY's		(9.0	)		(10.7	)		(5.4	)		(1.4	)		(13.3	)		(10.0	)		(7.2	)		1.0			(3.4	)		(3.1	)		(5.8	)		(5.3	)		(6.6	)		(7.3	)
Catastrophes - current AY		(1.7	)		7.3			34.3			22.0			(4.2	)		22.9			27.0			11.9			28.1			19.4			21.2			20.6			15.4			14.4
Catastrophes - prior AY's		0.3			0.6			1.1			0.6			0.1			0.9			0.0			(0.3	)		0.9			(0.1	)		0.8			0.1			0.7			0.1
Total		59.2	%		73.3	%		100.9	%		88.6	%		65.9	%		90.1	%		85.4	%		76.7	%		94.6	%		81.0	%		87.5	%		84.0	%		80.4	%		79.4	%

Consolidated Cincinnati Insurance Companies

10-Year Property Casualty Data - Consolidated

(Dollars in millions)	Years ended December 31,
	2009			2008			2007			2006			2005			2004			2003			2002			2001			2000
Premiums
Adjusted written premiums – statutory*	$	2,919		$	3,040		$	3,149		$	3,172		$	3,097		$	3,026		$	2,789		$	2,496		$	2,188		$	1,936
Codification		-			-			-			-			-			-			-			-			402			(55	)
Written premium adjustment – statutory		(8	)		(30	)		(32	)		6			(21	)		(29	)		26			117			-			-
Reported written premiums – statutory**		2,911			3,010			3,117			3,178			3,076			2,997			2,815			2,613			2,590			1,881
Unearned premium change		-			-			8			(14	)		(18	)		(78	)		(162	)		(222	)		(517	)		(53	)
Earned premiums (GAAP)	$	2,911		$	3,010		$	3,125		$	3,164		$	3,058		$	2,919		$	2,653		$	2,391		$	2,073		$	1,828

Year-over-year growth rate:
Adjusted written premiums – statutory		(4.0	)%		(3.5	)%		(0.7	)%		2.4	%		2.3	%		8.5	%		11.7	%		14.0	%		13.0	%		15.2	%
Written premiums – statutory		(3.3	)%		(3.4	)%		(1.9	)%		3.3	%		2.6	%		6.5	%		7.7	%		0.9	%		37.7	%		11.9	%
Earned premiums		(3.3	)%		(3.7	)%		(1.2	)%		3.5	%		4.8	%		10.0	%		11.0	%		15.3	%		13.4	%		10.3	%

Statutory combined ratio
Reported statutory combined ratio*		104.4	%		100.4	%		90.3	%		93.9	%		89.0	%		89.4	%		94.2	%		98.4	%		99.5	%		112.5	%
Codification		-			-			-			-			-			-			-			-			4.1			(0.9	)
Written premium adjustment – statutory	nm			nm			nm			nm			nm			nm			nm				1.2			-			-
One-time item		-			-			-			-			-			-			0.8			-			-			(1.7	)
Statutory combined ratio (adjusted)		104.4	%		100.4	%		90.3	%		93.9	%		89.0	%		89.4	%		95.0	%		99.6	%		103.6	%		109.9	%
Less catastrophe losses		5.7			6.8			0.8			5.5			4.1			5.1			3.6			3.6			3.1			2.7
Statutory combined ratio excluding catastrophe losses (adjusted)		98.7	%		93.6	%		89.5	%		88.4	%		84.9	%		84.3	%		91.4	%		96.0	%		100.5	%		107.2	%

Reported commission expense ratio*		19.0	%		18.4	%		19.2	%		18.7	%		19.3	%		19.2	%		17.6	%		15.9	%		13.9	%		17.4	%
Codification		-			-			-			-			-			-			-			-			2.6			(0.5	)
Written premium adjustment – statutory	nm			nm			nm			nm			nm			nm			nm				0.8			-			-
Commission expense ratio (adjusted)		19.0	%		18.4	%		19.2	%		18.7	%		19.3	%		19.2	%		17.6	%		16.7	%		16.5	%		16.9	%

Reported other expense ratio*		13.7	%		13.7	%		12.5	%		11.7	%		10.5	%		10.1	%		8.9	%		9.6	%		8.7	%		12.6	%
Codification		-			-			-			-			-			-			-			-			1.5			(0.4	)
Written premium adjustment – statutory	nm			nm			nm			nm			nm			nm			nm				0.4			-			-
One-time item		-			-			-			-			-			-			0.8			-			-			(1.7	)
Other expense ratio (adjusted)		13.7	%		13.7	%		12.5	%		11.7	%		10.5	%		10.1	%		9.7	%		10.0	%		10.2	%		10.5	%

Reported statutory expense ratio*		32.7	%		32.1	%		31.7	%		30.4	%		29.8	%		29.3	%		26.5	%		25.5	%		22.6	%		30.0	%
Codification		-			-			-			-			-			-			-			-			4.1			(0.9	)
Written premium adjustment – statutory	nm			nm			nm			nm			nm			nm			nm				1.2			-			-
One-time item		-			-			-			-			-			-			0.8			-			-			(1.7	)
Statutory expense ratio (adjusted)		32.7	%		32.1	%		31.7	%		30.4	%		29.8	%		29.3	%		27.3	%		26.7	%		26.7	%		27.4	%

GAAP combined ratio
GAAP combined ratio		104.5	%		100.6	%		90.3	%		94.3	%		89.2	%		89.8	%		94.7	%		99.7	%		104.9	%		112.8	%
One-time item		-			-			-			-			-			-			0.8			-			-			(2.1	)
GAAP combined ratio before one-time item		104.5	%		100.6	%		90.3	%		94.3	%		89.2	%		89.8	%		95.5	%		99.7	%		104.9	%		110.7	%

Written premiums to surplus
Adjusted premiums to statutory surplus ratio		0.800			0.905			0.731			0.668			0.739			0.721			1.002			1.067			0.864
Written premium adjustment		(0.002	)		(0.009	)		(0.007	)		0.001			(0.005	)		(0.007	)		0.010			0.050			0.159
Reported premiums to statutory surplus ratio		0.798			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

(Dollars in millions)	Years ended December 31,
	2009			2008			2007			2006			2005			2004
Premiums
Adjusted written premiums – statutory*	$	2,190		$	2,341		$	2,444		$	2,435		$	2,306		$	2,209
Written premium adjustment – statutory		(9	)		(30	)		(31	)		7			(16	)		(23	)
Reported written premiums – statutory	$	2,181		$	2,311		$	2,413		$	2,442		$	2,290		$	2,186
Unearned premium change		18			5			(2	)		(40	)		(36	)		(60	)
Earned premiums (GAAP)	$	2,199		$	2,316		$	2,411		$	2,402		$	2,254		$	2,126

Year-over-year growth rate:
Adjusted written premiums – statutory		(6.5	)%		(4.2	)%		0.4	%		5.6	%		4.4	%		10.0	%
Written premiums – statutory		(5.6	)%		(4.2	)%		(1.2	)%		6.7	%		4.7	%		7.6	%
Earned premiums		(5.1	)%		(3.9	)%		0.4	%		6.6	%		6.0	%		11.4	%

Statutory combined ratio
Reported statutory combined ratio*		101.8	%		96.6	%		89.2	%		90.8	%		87.1	%		83.7	%
Less catastrophe losses		2.5			4.5			0.7			3.7			3.4			3.4
Statutory combined ratio excluding catastrophe losses (adjusted)		99.3	%		92.1	%		88.5	%		87.1	%		83.7	%		80.3	%

GAAP combined ratio
GAAP combined ratio		101.6	%		97.0	%		89.2	%		91.3	%		87.4	%		84.1	%

*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

(Dollars in millions)	Years ended December 31,
	2009			2008			2007			2006			2005			2004
Premiums
Adjusted written premiums – statutory*	$	690		$	685		$	705		$	737		$	791		$	817
Written premium adjustment – statutory		1			-			(1	)		(1	)		(5	)		(6	)
Reported written premiums – statutory	$	691		$	685		$	704		$	736		$	786		$	811
Unearned premium change		(6	)		4			10			26			18			(18	)
Earned premiums (GAAP)	$	685		$	689		$	714		$	762		$	804		$	793

Year-over-year growth rate:
Adjusted written premiums – statutory		0.7	%		(2.8	)%		(4.3	)%		(6.8	)%		(3.2	)%		4.7	%
Written premiums – statutory		0.9	%		(2.7	)%		(4.3	)%		(6.4	)%		(3.1	)%		3.4	%
Earned premiums		(0.6	)%		(3.5	)%		(6.3	)%		(5.2	)%		1.4	%		6.4	%

Statutory combined ratio
Reported statutory combined ratio*		111.4	%		111.6	%		94.1	%		103.6	%		94.3	%		104.6	%
Less catastrophe losses		16.1			14.5			1.3			11.3			6.3			9.7
Statutory combined ratio excluding catastrophe losses (adjusted)		95.3	%		97.1	%		92.8	%		92.3	%		88.0	%		94.9	%

GAAP combined ratio
GAAP combined ratio		111.8	%		111.9	%		93.9	%		103.6	%		94.4	%		105.0	%

*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.

Cincinnati Insurance Group (Excludes CSU)

Loss and Loss Expense Analysis

(In millions)			Paid										Loss												Loss
	Paid		loss		Total		Case			IBNR			expense			Total			Case			IBNR			expense		Total
	losses		expense		paid		reserves			reserves			reserves			reserves			incurred			incurred			incurred		incurred
Gross loss and loss expense incurred at December 31, 2009
Commercial casualty	$	267	$	126	$	394	$	(2	)	$	(18	)	$	14		$	(6	)	$	265		$	(18	)	$	140	$	388
Commercial property		326		46		372		(51	)		9			(1	)		(43	)		276			9			45		329
Commercial auto		228		40		268		(10	)		(1	)		(1	)		(12	)		218			(1	)		39		256
Workers' compensation		244		40		284		7			105			17			129			250			105			57		413
Specialty packages		90		17		107		(6	)		4			-			(2	)		84			4			17		105
Surety and executive risk		55		11		66		(1	)		2			5			6			55			2			16		72
Machinery and equipment		8		1		9		(2	)		-			-			(2	)		6			-			1		7
Total commercial lines		1,218		282		1,500		(64	)		100			34			70			1,154			100			316		1,570

Personal auto		202		30		233		(11	)		(1	)		-			(11	)		192			(1	)		30		221
Homeowners		273		35		308		(10	)		9			1			-			262			9			36		308
Other personal		46		6		51		(8	)		(10	)		(2	)		(21	)		37			(10	)		4		31
Total personal lines		521		71		592		(30	)		(2	)		(1	)		(32	)		491			(2	)		70		559
Total property casualty group	$	1,739	$	353	$	2,092	$	(94	)	$	98		$	33		$	38		$	1,645		$	98		$	386	$	2,129

Ceded loss and loss expense incurred at December 31, 2009
Commercial casualty	$	42	$	9	$	51	$	(41	)	$	(9	)	$	(1	)	$	(52	)	$	1		$	(9	)	$	8	$	(1	)
Commercial property		65		1		67		(25	)		4			-			(22	)		40			4			1		45
Commercial auto		2		-		2		(2	)		-			-			(2	)		-			-			-		-
Workers' compensation		13		1		14		(6	)		3			-			(4	)		7			3			1		10
Specialty packages		2		-		2		(1	)		1			-			(1	)		1			1			-		2
Surety and executive risk		14		2		16		(17	)		-			-			(17	)		(3	)		-			2		(1	)
Machinery and equipment		-		-		-		-			-			-			-			-			-			-		-
Total commercial lines		138		13		151		(93	)		(2	)		(1	)		(96	)		45			(2	)		12		55

Personal auto		1		-		1		-			-			-			-			1			-			-		1
Homeowners		17		-		17		(10	)		3			-			(8	)		7			3			-		10
Other personal		1		-		1		(1	)		(3	)		-			(4	)		-			(3	)		-		(3	)
Total personal lines		19		-		19		(11	)		-			-			(11	)		8			-			-		7
Total property casualty group	$	157	$	13	$	170	$	(104	)	$	(2	)	$	(1	)	$	(108	)	$	53		$	(2	)	$	12	$	62

Net loss and loss expense incurred at December 31, 2009
Commercial casualty	$	225	$	117	$	343	$	39		$	(9	)	$	15		$	46		$	265		$	(9	)	$	133	$	389
Commercial property		261		45		306		(25	)		5			(1	)		(22	)		236			5			43		284
Commercial auto		227		40		267		(9	)		(1	)		(1	)		(11	)		218			(1	)		39		256
Workers' compensation		231		40		270		13			103			17			133			244			103			57		403
Specialty packages		88		17		105		(5	)		4			-			(1	)		83			4			17		104
Surety and executive risk		42		9		51		16			2			5			22			58			2			14		73
Machinery and equipment		7		1		8		(2	)		-			-			(2	)		6			-			1		7
Total commercial lines		1,080		268		1,349		28			102			35			166			1,109			102			303		1,515

Personal auto		202		30		232		(11	)		(1	)		-			(11	)		191			(1	)		30		220
Homeowners		255		35		290		-			6			1			8			255			6			36		298
Other personal		44		6		50		(8	)		(7	)		(2	)		(17	)		37			(7	)		4		33
Total personal lines		501		71		572		(18	)		(2	)		-			(21	)		483			(2	)		70		551
Total property casualty group	$	1,582	$	339	$	1,921	$	10		$	101		$	35		$	145		$	1,592		$	101		$	374	$	2,066

*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding.

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Consolidated

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09			9/30/08			12/31/09			12/31/08
Premiums
Agency renewal written premiums	$	635		$	669		$	666		$	695		$	669		$	687		$	738		$	733		$	1,361		$	1,472		$	2,030		$	2,159		$	2,665		$	2,828
Agency new business written premiums		94			107			107			97			100			93			100			76			204			175			311			268			405			368
Ceded written premiums		(39	)		(42	)		(40	)		(39	)		(42	)		(50	)		(37	)		(38	)		(79	)		(75	)		(122	)		(125	)		(161	)		(165	)
Other written premiums		2			2			2			2			2			4			1			2			5			3			7			7			9			9
Written premium adjustment – statutory		(13	)		(6	)		(12	)		23			(13	)		(7	)		(12	)		3			11			(9	)		5			(17	)		(8	)		(30	)
Reported written premiums – statutory*	$	680		$	730		$	723		$	778		$	717		$	727		$	790		$	776		$	1,501		$	1,566		$	2,231		$	2,292		$	2,911		$	3,010
Unearned premium change		33			3			10			(46	)		30			24			(29	)		(25	)		(36	)		(54	)		(33	)		(30	)		-			-
Earned premiums	$	713		$	733		$	733		$	732		$	747		$	751		$	761		$	751		$	1,465		$	1,512		$	2,198		$	2,262		$	2,911		$	3,010
Year over year change %
Agency renewal written premiums		(5.0	)%		(2.7	)%		(9.8	)%		(5.2	)%		(5.1	)%		(6.1	)%		(3.0	)%		(3.7	)%		(7.6	)%		(3.4	)%		(6.0	)%		(4.3	)%		(5.8	)%		(4.5	)%
Agency new business written premiums		(6.3	)		15.4			7.3			28.9			23.9			12.4			22.8			(6.3	)		16.6			8.3			16.0			9.8			9.9			13.4
Ceded written premiums		(7.2	)		(14.6	)		7.1			4.6			1.0			20.8			(4.6	)		(1.1	)		5.8			(2.9	)		(2.4	)		5.4			(3.6	)		4.2
Other written premiums		(8.7	)		(31.5	)		81.6			32.5			(50.6	)		(39.1	)		(74.6	)		(71.8	)		53.5			(73.1	)		7.9			(61.6	)		3.7			(59.3	)
Written premium adjustment – statutory		(3.8	)		(20.3	)		(0.3	)		661.2			(48.0	)		(81.6	)		(900.0	)		(91.5	)		(220.8	)		(124.3	)		(126.5	)		161.5			(73.3	)		(4.8	)
Reported written premiums – statutory*		(5.1	)		0.5			(8.5	)		0.3			(1.0	)		(1.3	)		(2.5	)		(8.3	)		(4.2	)		(5.4	)		(2.7	)		(4.2	)		(3.3	)		(3.4	)

Statutory combined ratio
Statutory combined ratio		99.1	%		96.9	%		116.6	%		105.1	%		100.2	%		102.8	%		101.5	%		97.2	%		110.8	%		99.4	%		106.2	%		100.5	%		104.4	%		100.4	%
Contribution from catastrophe losses		(1.7	)		0.9			16.1			7.2			(2.1	)		8.4			14.9			5.7			11.6			10.3			8.1			9.7			5.7			6.8
Statutory combined ratio excluding catastrophe losses		100.8	%		96.0	%		100.5	%		97.9	%		102.3	%		94.4	%		86.6	%		91.5	%		99.2	%		89.1	%		98.1	%		90.8	%		98.7	%		93.6	%
Commission expense ratio		20.4	%		20.1	%		18.2	%		17.7	%		20.8	%		17.7	%		17.4	%		17.7	%		17.9	%		17.5	%		18.7	%		17.6	%		19.0	%		18.4	%
Other expense ratio		13.7			14.1			13.8			13.2			15.9			15.4			10.7			12.9			13.5			11.8			13.7			12.8			13.7			13.7
Statutory expense ratio		34.1	%		34.2	%		32.0	%		30.9	%		36.7	%		33.1	%		28.1	%		30.6	%		31.4	%		29.3	%		32.4	%		30.4	%		32.7	%		32.1	%
GAAP combined ratio
GAAP combined ratio		98.6	%		95.1	%		116.6	%		107.5	%		98.9	%		101.3	%		103.5	%		98.6	%		112.1	%		101.1	%		106.4	%		101.0	%		104.5	%		100.6	%
Contribution from catastrophe losses		(1.7	)		0.9			16.1			7.2			(2.1	)		8.4			14.9			5.7			11.6			10.3			8.1			9.7			5.7			6.8
GAAP combined ratio excluding catastrophe losses		100.3	%		94.2	%		100.5	%		100.3	%		101.0	%		92.9	%		88.6	%		92.9	%		100.5	%		90.8	%		98.3	%		91.3	%		98.8	%		93.8	%

*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

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09			9/30/08			12/31/09			12/31/08
Premiums
Agency renewal written premiums	$	478		$	489		$	488		$	557		$	514		$	502		$	552		$	588		$	1,045		$	1,140		$	1,535		$	1,642		$	2,013		$	2,156
Agency new business written premiums		67			76			79			76			83			77			87			66			155			153			231			229			298			312
Ceded written premiums		(31	)		(32	)		(32	)		(31	)		(23	)		(46	)		(31	)		(32	)		(64	)		(63	)		(96	)		(109	)		(127	)		(131	)
Other written premiums		2			2			1			1			(9	)		13			1			-			3			1			4			14			6			4
Written premium adjustment – statutory		(13	)		(6	)		(12	)		23			(13	)		(8	)		(12	)		3			11			(9	)		4			(17	)		(9	)		(30	)
Reported written premiums – statutory*	$	503		$	528		$	524		$	626		$	552		$	538		$	597		$	625		$	1,149		$	1,222		$	1,678		$	1,759		$	2,181		$	2,311
Unearned premium change		29			27			32			(69	)		21			44			(11	)		(51	)		(37	)		(61	)		(11	)		(16	)		18			5
Earned premiums	$	532		$	555		$	556		$	557		$	573		$	582		$	586		$	574		$	1,112		$	1,161		$	1,667		$	1,743		$	2,199		$	2,316
Year over year change %
Agency renewal written premiums		(6.9	)%		(2.5	)%		(11.6	)%		(5.2	)%		(5.9	)%		(7.7	)%		(2.9	)%		(4.0	)%		(8.3	)%		(3.5	)%		(6.5	)%		(4.8	)%		(6.6	)%		(5.1	)%
Agency new business written premiums		(19.5	)		(0.4	)		(8.9	)		14.9			16.4			6.0			21.2			(8.3	)		1.4			6.4			0.8			6.3			(4.6	)		8.8
Ceded written premiums		34.4			(29.2	)		3.2			0.2			(33.0	)		43.6			(1.6	)		2.8			1.7			0.6			(11.4	)		15.1			(3.4	)		2.4
Other written premiums		(116.5	)		(88.4	)		49.2		nm				(391.7	)		250.5			(73.4	)		(99.4	)		227.4			(89.2	)		(70.3	)		25.0			18.1			(66.5	)
Written premium adjustment – statutory		0.0			(18.8	)		4.2			666.7			(45.8	)		(81.6	)		(900.0	)		(91.5	)		(216.7	)		(124.3	)		(123.5	)		161.7			(70.0	)		(1.6	)
Reported written premiums – statutory*		(8.8	)		(1.8	)		(12.2	)		0.1			(1.9	)		(1.2	)		(2.7	)		(9.8	)		(5.9	)		(6.5	)		(4.7	)		(4.9	)		(5.6	)		(4.2	)

Statutory combined ratio
Statutory combined ratio		102.0	%		94.9	%		112.0	%		99.0	%		99.0	%		97.3	%		97.5	%		93.3	%		105.4	%		95.5	%		101.8	%		95.9	%		101.8	%		96.6	%
Contribution from catastrophe losses		(1.8	)		(1.2	)		10.2			2.5			(1.5	)		4.0			11.3			3.9			6.4			7.7			3.8			6.4			2.5			4.5
Statutory combined ratio excluding catastrophe losses		103.8	%		96.1	%		101.8	%		96.5	%		100.5	%		93.3	%		86.2	%		89.4	%		99.0	%		87.8	%		98.0	%		89.5	%		99.3	%		92.1	%
Commission expense ratio		20.0	%		20.3	%		18.1	%		16.4	%		20.8	%		18.1	%		16.9	%		16.5	%		17.2	%		16.7	%		18.2	%		17.1	%		18.6	%		18.0	%
Other expense ratio		15.1			15.3			14.4			12.8			15.7			15.4			10.9			13.2			13.5			12.1			14.0			13.1			14.3			13.7
Statutory expense ratio		35.1	%		35.6	%		32.5	%		29.2	%		36.5	%		33.5	%		27.8	%		29.7	%		30.7	%		28.8	%		32.2	%		30.2	%		32.9	%		31.7	%
GAAP combined ratio
GAAP combined ratio		100.8	%		92.4	%		110.9	%		102.2	%		98.1	%		94.9	%		99.9	%		95.0	%		106.6	%		97.4	%		101.9	%		96.6	%		101.6	%		97.0	%
Contribution from catastrophe losses		(1.8	)		(1.2	)		10.2			2.5			(1.5	)		4.0			11.3			3.9			6.4			7.7			3.8			6.4			2.5			4.5
GAAP combined ratio excluding catastrophe losses		102.6	%		93.6	%		100.7	%		99.7	%		99.6	%		90.9	%		88.6	%		91.1	%		100.2	%		89.7	%		98.1	%		90.2	%		99.1	%		92.5	%

*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

(Dollars in millions)	Three months ended																								Six months ended						Nine months ended						Twelve months ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08			9/30/08			6/30/08			3/31/08			6/30/09			6/30/08			9/30/09			9/30/08			12/31/09			12/31/08
Premiums
Agency renewal written premiums	$	153		$	177		$	176		$	137		$	156		$	185		$	186		$	146		$	313		$	332		$	490		$	517		$	642		$	672
Agency new business written premiums		20			21			19			14			11			11			10			8			34			19			55			30			75			42
Ceded written premiums		(6	)		(9	)		(7	)		(7	)		(8	)		(13	)		(6	)		(6	)		(15	)		(12	)		(24	)		(26	)		(31	)		(33	)
Other written premiums		-			1			1			1			-			1			1			2			2			2			3			4			4			4
Written premium adjustment – statutory		-			-			-			-			-			-			-			-			-			-			-			-			1			-
Reported written premiums – statutory*	$	167		$	190		$	191		$	145		$	159		$	184		$	191		$	150		$	334		$	341		$	524		$	525		$	691		$	685
Unearned premium change		5			(20	)		(19	)		26			12			(17	)		(17	)		27			9			10			(11	)		(7	)		(6	)		4
Earned premiums	$	172		$	170		$	172		$	171		$	171		$	167		$	174		$	177		$	343		$	351		$	513		$	518		$	685		$	689
Year over year change %
Agency renewal written premiums		(1.8	)%		(4.7	)%		(5.3	)%		(6.0	)%		(2.3	)%		(1.6	)%		(3.3	)%		(2.8	)%		(5.6	)%		(3.1	)%		(5.3	)%		(2.5	)%		(4.5	)%		(2.5	)%
Agency new business written premiums		76.7			90.9			85.0			67.2			18.0			11.9			7.7			(0.5	)		76.9			3.9			82.0			6.7			80.6			9.6
Ceded written premiums		(8.0	)		(35.9	)		20.2			23.1			7.0			61.4			(17.3	)		(17.2	)		21.6			(17.3	)		(8.5	)		11.0			(8.4	)		10.1
Other written premiums		8.8			(30.4	)		128.2			(50.0	)		(64.9	)		(37.3	)		(76.2	)		(0.4	)		(7.6	)		(43.3	)		(16.0	)		(41.3	)		(13.2	)		(45.4	)
Written premium adjustment – statutory		0.0			0.0			0.0			0.0			(100.0	)		(100.0	)		0.0			(100.0	)		0.0			(100.0	)		0.0			(100.0	)		0.0			(100.0	)
Reported written premiums – statutory*		4.7			3.2			(0.4	)		(3.5	)		(1.4	)		(4.0	)		(3.0	)		(2.0	)		(1.8	)		(2.6	)		(0.1	)		(3.1	)		0.9			(2.7	)

Statutory combined ratio
Statutory combined ratio		89.4	%		102.8	%		130.5	%		123.9	%		102.1	%		120.6	%		114.3	%		110.8	%		126.8	%		112.2	%		118.7	%		114.9	%		111.4	%		111.6	%
Contribution from catastrophe losses		(1.4	)		7.9			35.4			22.6			(4.1	)		23.8			27.0			11.6			29.0			19.3			22.0			20.7			16.1			14.5
Statutory combined ratio excluding catastrophe losses		90.8	%		94.9	%		95.1	%		101.3	%		106.2	%		96.8	%		87.3	%		99.2	%		97.8	%		92.9	%		96.7	%		94.2	%		95.3	%		97.1	%
Commission expense ratio		20.9	%		19.1	%		18.0	%		22.5	%		21.2	%		16.4	%		18.6	%		22.3	%		20.0	%		20.2	%		19.6	%		18.9	%		20.0	%		19.5	%
Other expense ratio		9.3			10.4			11.7			12.9			15.0			14.0			10.3			11.8			12.2			11.0			11.6			12.0			11.0			12.7
Statutory expense ratio		30.2	%		29.5	%		29.7	%		35.4	%		36.2	%		30.4	%		28.9	%		34.1	%		32.2	%		31.2	%		31.2	%		30.9	%		31.0	%		32.2	%
GAAP combined ratio
GAAP combined ratio		90.9	%		102.3	%		133.2	%		120.7	%		100.0	%		122.5	%		115.3	%		110.1	%		126.9	%		112.7	%		118.7	%		115.9	%		111.8	%		111.9	%
Contribution from catastrophe losses		(1.4	)		7.9			35.4			22.6			(4.1	)		23.8			27.0			11.6			29.0			19.3			22.0			20.7			16.1			14.5
GAAP combined ratio excluding catastrophe losses		92.3	%		94.4	%		97.8	%		98.1	%		104.1	%		98.7	%		88.3	%		98.5	%		97.9	%		93.4	%		96.7	%		95.2	%		95.7	%		97.4	%

*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

Statutory Statements of Income

	For the Three Months Ended December 31,												For the Twelve Months Ended December 31,
(Dollars in millions)	2009			2008			Change			% Change			2009			2008			Change			% Change

Net premiums written	$	110		$	48		$	62			129.4		$	338		$	177		$	161			91.1
Net investment income		33			31			2			6.6			126			120			7			5.6
Amortization of interest maintenance reserve		(2	)		-			(2	)	nm				(6	)		(2	)		(5	)		(258.9	)
Commissions and expense allowances on reinsurance ceded		2			2			-		nm				7			8			(1	)		(8.3	)
Income from fees associated with Separate Accounts		-			1			(1	)		(103.0	)		1			2			(1	)		(70.4	)
Total revenues	$	144		$	82		$	62			76.3		$	466		$	305		$	161			52.9

Death benefits and matured endowments	$	11		$	12		$	(1	)		(11.2	)	$	53		$	46		$	7			15.2
Annuity benefits		7			12			(5	)		(39.2	)		30			34			(4	)		(11.9	)
Disability benefits and benefits under accident and health contracts		-			1			(1	)		(38.9	)		2			3			(1	)		(20.2	)
Surrender benefits and group conversions		6			6			-		nm				21			24			(3	)		(11.3	)
Interest and adjustments on deposit-type contract funds		3			3			-		nm				11			11			-		nm
Increase in aggregate reserves for life and accident and health contracts		92			25			67			267.5			275			102			173			169.3
Total benefit expenses	$	119		$	59		$	60			102.2		$	392		$	220		$	173			78.4

Commissions	$	12		$	9		$	4			44.2		$	43		$	33		$	10			29.4
General insurance expenses and taxes		9			10			(1	)		(12.7	)		36			39			(3	)		(8.2	)
Increase in loading on deferred and uncollected premiums		(1	)		(1	)		-		nm				(5	)		(3	)		(2	)		(68.2	)
Net transfers to or (from) Separate Accounts		-			-			-		nm				(4	)		-			(4	)	nm
Total operating expenses	$	21		$	18		$	2			11.2		$	69		$	69		$	-		nm

Federal and foreign income taxes incurred (benefit)		(1	)		14			(14	)	nm				(6	)		34			(39	)	nm

Net gain from operations before realized capital gains or (losses)	$	5		$	(9	)	$	14		nm			$	11		$	(17	)	$	28		nm

Net realized gains or (losses) net of capital gains tax		11			(13	)		24		nm				4			(53	)		57		nm

Net income (loss) (statutory)	$	16		$	(22	)	$	37		nm			$	15		$	(70	)	$	85		nm

*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 (CINF) 8-KCincinnati Financial Reports Fourth-Quarter and Full-Year 2009 Results