Cincinnati Financial 8K Reports First-Quarter 2010 Results | CINF 28 Apr 10

Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending March 31, 2010

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	A+	–	A+

Ratings are as of April 28, 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

First Quarter 2010

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

Consolidated
	Quick Reference	4
	CFC and Subsidiaries Consolidation – Three Months Ended March 31, 2010	5
	CFC Insurance Subsidiaries – Selected Balance Sheet Data	6

Consolidated Property Casualty Insurance Operations
(Includes Cincinnati Specialty Underwriters Insurance Company (CSU))
	Statutory Statements of Income	7
	Cincinnati Insurance Companies – Loss Detail	8
	Cincinnati Insurance Companies – Loss Ratio	9
	Cincinnati Insurance Companies – Loss Claim Count	10
	Direct Written Premiums by Line of Business and State	11
	Quarterly Property Casualty Data – Commercial Lines of Business	12
	Quarterly Property Casualty Data – Personal Lines of Business	13
	Loss and Loss Expense Analysis	14

Reconciliation Data
	Quarterly Property Casualty Data – Consolidated	15
	Quarterly Property Casualty Data – Commercial Lines	16
	Quarterly Property Casualty Data – Personal Lines	17

Life Insurance Operations
	Statutory Statements of Income	18

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.

2010 First-Quarter Supplement

Cincinnati Financial Corporation

Quick Reference - First Quarter 2010

(all data shown is for the three months ended or as of March 31, 2010)

	3/31/2010		Year over year change %
Revenues:

Commercial lines net written premiums	$	588		(6	)
Personal lines net written premiums		155		7
Surplus lines net written premiums		13		71
Property casualty net written premiums		756		(3	)
Life and accident and health net written premiums		40		9
Annuity net written premiums		64		423
Life, annuity and accident and health net written premiums		106		111
Commercial lines net earned premiums		522		(6	)
Personal lines net earned premiums		174		2
Surplus lines net earned premiums		11		175
Property casualty net earned premiums		707		(3	)
Life and accident and health net earned premiums		39		18
Investment income		130		5
Realized gains on investments		8	nm
Other income		3		0
Total revenues		887		0

Income:

Operating income	$	63		70
Net realized investment gains and losses		5	nm
Net income		68		94

Per share (diluted):

Operating income	$	0.39		70
Net realized investment gains and losses		0.03	nm
Net income		0.42		91
Book value		29.86		25
Weighted average shares – diluted		163,310,451		0

	3/31/2010			Year over year change %
Benefits and expenses:

Commercial lines loss and loss expenses	$	352			(9	)
Personal lines loss and loss expenses		112			(26	)
Surplus lines loss and loss expenses		10			233
Life and accident and health losses and policy benefits		42			8
Underwriting, acquisition and insurance expenses		268			5
Other operating expenses		4			(33	)
Interest expenses		14			0
Total expenses		802			(6	)
Net income before income taxes		85			150
Total income tax		17		nm

Balance Sheet:

Fixed maturity investments	$	8,081
Equity securities		2,838
Short-term investments		—
Other invested assets		83
Total invested assets	$	11,002

Loss and loss expense reserves	$	4,119
Total debt		839
Shareholders' equity		4,865

Key ratios:

Commercial lines GAAP combined ratio		102.1	%
Personal lines GAAP combined ratio		102.5
Property casualty GAAP combined ratio		102.6

Commercial lines STAT combined ratio		99.3	%
Personal lines STAT combined ratio		106.6
Property casualty STAT combined ratio		101.1

Value creation ratio		3.4	%

2010 First-Quarter Supplement

Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Three Months Ended March 31, 2010

(Dollars in millions)	CFC			CONSOL P&C			CLIC			CFC-I		CINFIN			C-SUPR		ELIM			Total
Revenues:
Premiums earned:
Property casualty	$	—		$	748		$	—		$	—	$	—		$	—	$	(1	)	$	747
Life		—			—			48			—		—			—		—			48
Accident health		—			—			2			—		—			—		—			2
Premiums ceded		—			(40	)		(11	)		—		—			—		—			(51	)
Total earned premium		—			708			39			—		—			—		(1	)		746
Investment income		10			87			33			—		—			—		—			130
Realized gain (loss) on investments		6			4			(2	)		—		—			—		—			8
Other income		4			1			—			2		—			3		(7	)		3
Total revenues	$	20		$	800		$	70		$	2	$	—		$	3	$	(8	)	$	887

Benefits & expenses:
Losses & policy benefits	$	—		$	452		$	58		$	—	$	—		$	—	$	(2	)	$	508
Reinsurance recoveries		—			23			(15	)		—		—			—		—			8
Underwriting, acquisition and insurance expenses		—			252			16			—		—			—		—			268
Other operating expenses		6			—			—			1		—			3		(6	)		4
Interest expense		13			—			—			1		—			—		—			14
Total expenses	$	19		$	727		$	59		$	2	$	—		$	3	$	(8	)	$	802

Income before income taxes	$	1		$	73		$	11		$	—	$	—		$	—	$	—		$	85

Provision (benefit) for income taxes:
Current operating income	$	(2	)	$	17		$	(3	)	$	—	$	—		$	—	$	—		$	12
Capital gains/losses		2			2			(1	)		—		—			—		—			3
Deferred		(1	)		(5	)		8			—		—			—		—			2
Total provision (benefit) for income taxes	$	(1	)	$	14		$	4		$	—	$	—		$	—	$	—		$	17

Operating income (loss)	$	(2	)	$	57		$	8		$	—	$	—		$	—	$	—		$	63

Net income - current year	$	2		$	59		$	7		$	—	$	—		$	—	$	—		$	68

Net income (loss) - prior year	$	49		$	(4	)	$	(9	)	$	—	$	(1	)	$	—	$	—		$	35

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

2010 First-Quarter Supplement

Cincinnati Financial Corporation Insurance Subsidiaries

Selected Balance Sheet Data

(In millions)	12/31/2010	9/30/2010	6/30/2010	3/31/2010		12/31/2009		9/30/2009		6/30/2009			3/31/2009
Cincinnati Insurance Consolidated (including CSU)
Fixed maturities (fair value)				$	5,759	$	5,663	$	5,521	$	5,169		$	4,804
Equities (fair value)					2,013		1,910		2,477		2,247			1,986
Short-term investments (fair value)					—		5		10		11			13
Fixed maturities - pretax net unrealized gain (loss)					287		242		301		25			(36	)
Equities - pretax net unrealized gain					635		592		594		487			347
Loss and loss expense reserves - STAT					3,689		3,639		3,656		3,674			3,555
Equity GAAP					4,506		4,405		4,283		3,795			3,512
Surplus - STAT					3,692		3,648		3,472		3,241			3,105

The Cincinnati Life Insurance Company
Fixed maturities (fair value)				$	2,055	$	1,927	$	1,868	$	1,694		$	1,534
Equities (fair value)					114		108		123		103			89
Short-term investments (fair value)					—		—		1		1			—
Fixed maturities - pretax net unrealized gain (loss)					110		72		67		(43	)		(94	)
Equities - pretax net unrealized gain (loss)					7		1		11		(8	)		(27	)
Equity - GAAP					700		666		653		563			454
Surplus - STAT					310		300		283		270			254

	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		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	)		0		6		4		(4	)		20
Equities - pretax net unrealized gain		(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

2010 First-Quarter Supplement

Consolidated Cincinnati Insurance Companies

Statutory Statements of Income

	For the Three Months Ended March 31,
(In millions)	2010			2009			Change			% Change
Underwriting income
Net premiums written	$	756		$	778		$	(22	)		(3	)
Unearned premiums increase		48			46			2			4
Earned premiums	$	708		$	732		$	(24	)		(3	)

Losses incurred	$	385		$	457		$	(72	)		(16	)
Allocated loss expenses incurred		43			36			7			18
Unallocated loss expenses incurred		47			50			(3	)		(5	)
Other underwriting expenses incurred		254			236			18			8
Workers compensation dividend incurred		3			4			(1	)		(15	)

Total underwriting deductions	$	732		$	783		$	(51	)		(6	)
Net underwriting losses	$	(24	)	$	(51	)	$	27			(53	)

Investment income
Gross investment income earned	$	90		$	86		$	4			5
Net investment income earned		89			85			4			5
Net realized capital gains (losses)		2			(34	)		36			nm
Net investment gains (excl. subs)	$	91		$	51		$	40			78
Dividend from subsidiary		—			20			(20	)		nm
Net investment gains (net of tax)	$	91		$	71		$	20			28

Other income	$	—		$	1		$	(1	)		nm

Net income before federal income taxes	$	67		$	21		$	46			222
Federal and foreign income taxes incurred	$	17		$	(1	)	$	18			nm
Net income (statutory)	$	50		$	22		$	28			127

*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.

2010 First-Quarter Supplement

Cincinnati Insurance Companies

Loss Detail

(Dollars in millions)	Three months ended																Six months ended				Nine months ended				Twelve months ended
	12/31/10	9/30/10	6/30/10	3/31/10		12/31/09			9/30/09			6/30/09		3/31/09			6/30/10	6/30/09			9/30/10	9/30/09			12/31/10	12/31/09
Consolidated Loss Detail
New losses greater than $4,000,000				$	6	$	9		$	18		$	21	$	9			$	30			$	48			$	57
New losses $1,000,000-$4,000,000					35		37			43			39		28				67				110				147
New losses $250,000-$1,000,000					52		48			55			47		62				109				164				212
Case reserve development above $250,000					37		89			51			70		56				125				177				265
Large losses subtotal				$	130	$	183		$	167		$	177	$	155			$	331			$	499			$	681
IBNR incurred					12		19			12			39		18				58				69				89
Catastrophe losses incurred					15		(12	)		7			118		53				171				177				165
Remaining incurred					228		166			182			191		232				423				605				771
Total losses incurred				$	385	$	356		$	368		$	525	$	458			$	983			$	1,350			$	1,706
Commercial Loss Detail
New losses greater than $4,000,000				$	6	$	9		$	13		$	21	$	9			$	30			$	43			$	52
New losses $1,000,000-$4,000,000					32		34			33			36		26				62				96				130
New losses $250,000-$1,000,000					40		35			43			39		47				86				129				164
Case reserve development above $250,000					32		83			49			63		51				114				163				245
Large losses subtotal				$	110	$	161		$	138		$	159	$	133			$	292			$	431			$	591
IBNR incurred					9		28			11			37		18				56				67				95
Catastrophe losses incurred					10		(10	)		(7	)		57		14				71				64				54
Remaining incurred					152		88			113			113		156				269				382				470
Total losses incurred				$	281	$	267		$	255		$	366	$	321			$	688			$	944			$	1,210
Personal Loss Detail
New losses greater than $4,000,000				$	—	$	—		$	5		$	—	$	—			$	—			$	5			$	5
New losses $1,000,000-$4,000,000					3		3			10			3		2				5				14				17
New losses $250,000-$1,000,000					10		13			12			8		15				23				35				48
Case reserve development above $250,000					3		5			2			7		5				11				14				19
Large losses subtotal				$	16	$	21		$	29		$	18	$	22			$	39			$	68			$	89
IBNR incurred					1		(10	)		—			—		(1	)			(1	)			(1	)			(11	)
Catastrophe losses incurred					5		(2	)		14			61		39				100				113				111
Remaining incurred					75		76			65			76		75				151				216				292
Total losses incurred				$	97	$	85		$	108		$	155	$	135			$	289			$	396			$	481
Excess & Surplus Loss Detail
New losses greater than $4,000,000					—		—			—			—		—				—				—				—
New losses $1,000,000-$4,000,000					—		—			—			—		—				—				—				—
New losses $250,000-$1,000,000					2		—			—			—		—				—				—				—
Case reserve development above $250,000					2		1			—			—		—				—				—				1
Large losses subtotal				$	4	$	1		$	—		$	—	$	—			$	—			$	—			$	1
IBNR incurred					2		1			1			2		1				3				3				5
Catastrophe losses incurred					—		—			—			—		—				—				—				—
Remaining incurred					1		2			4			2		1				3				7				9
Total losses incurred				$	7	$	4		$	5		$	4	$	2			$	6			$	10			$	15

*Dollar amounts shown are rounded to millions; certain amounts may not add due to rounding. The sum of quarterly amounts may not equal the full year as each is computed independently.

* 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.

2010 First-Quarter Supplement

Cincinnati Insurance Companies

Loss Ratio

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/10	9/30/10	6/30/10	3/31/10			12/31/09			9/30/09			6/30/09			3/31/09			6/30/10	6/30/09			9/30/10	9/30/09			12/31/10	12/31/09
Consolidated Loss Ratio
New losses greater than $4,000,000					0.8	%		1.3	%		2.5	%		2.8	%		1.3	%			2.0	%			2.2	%			2.0	%
New losses $1,000,000-$4,000,000					4.9			5.2			5.9			5.3			3.8				4.5				5.0				5.1
New losses $250,000-$1,000,000					7.4			6.7			7.5			6.4			8.4				7.5				7.4				7.3
Case reserve development above $250,000					5.3			12.4			7.0			9.6			7.6				8.5				8.0				9.0
Large losses subtotal					18.4	%		25.6	%		22.9	%		24.1	%		21.1	%			22.5	%			22.6	%			23.4	%
IBNR incurred					1.7			2.7			1.7			5.3			2.5				3.9				3.2				3.0
Total catastrophe losses incurred					2.1			(1.7	)		0.9			16.1			7.2				11.6				8.1				5.7
Remaining incurred					32.1			23.3			24.7			26.1			31.7				29.0				27.5				26.5
Total loss ratio					54.3	%		49.9	%		50.2	%		71.6	%		62.5	%			67.0	%			61.4	%			58.6	%
Commercial Loss Ratio
New losses greater than $4,000,000					1.1	%		1.7	%		2.4	%		3.7	%		1.7	%			2.7	%			2.6	%			2.4	%
New losses $1,000,000-$4,000,000					6.1			6.4			6.1			6.5			4.7				5.6				5.8				5.9
New losses $250,000-$1,000,000					7.7			6.5			7.8			7.0			8.4				7.7				7.8				7.5
Case reserve development above $250,000					6.2			15.5			8.8			11.4			9.1				10.3				9.8				11.1
Large losses subtotal					21.1	%		30.1	%		25.1	%		28.6	%		23.9	%			26.3	%			26.0	%			26.9	%
IBNR incurred					1.8			5.3			2.0			6.7			3.3				5.0				4.0				4.3
Total catastrophe losses incurred					1.8			(1.8	)		(1.2	)		10.3			2.5				6.4				3.8				2.5
Remaining incurred					29.0			16.6			20.3			20.4			27.9				24.1				22.9				21.4
Total loss ratio					53.7	%		50.2	%		46.2	%		66.0	%		57.6	%			61.8	%			56.7	%			55.1	%
Personal Loss Ratio
New losses greater than $4,000,000					0.0	%		0.0	%		2.9	%		0.0	%		0.0	%			0.0	%			1.0	%			0.7	%
New losses $1,000,000-$4,000,000					1.5			1.6			5.7			1.9			0.8				1.4				2.8				2.5
New losses $250,000-$1,000,000					5.5			7.5			7.0			4.8			8.6				6.7				6.7				6.9
Case reserve development above $250,000					1.9			3.2			1.3			3.7			3.0				3.3				2.7				2.9
Large losses subtotal					8.9	%		12.3	%		16.9	%		10.4	%		12.4	%			11.4	%			13.2	%			13.0	%
IBNR incurred					0.3			(5.7	)		(0.2	)		0.1			(0.6	)			(0.3	)			(0.3	)			(1.6	)
Total catastrophe losses incurred					3.0			(1.4	)		7.9			35.4			22.6				29.0				22.0				16.1
Remaining incurred					43.1			44.2			38.5			44.2			43.9				44.1				42.2				42.7
Total loss ratio					55.3	%		49.4	%		63.1	%		90.1	%		78.3	%			84.2	%			77.1	%			70.2	%
Excess & Surplus Loss Ratio
New losses greater than $4,000,000					0.0	%		0.0	%		0.0	%		0.0	%		0.0	%			0.0	%			0.0	%			0.0	%
New losses $1,000,000-$4,000,000					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
New losses $250,000-$1,000,000					16.9			4.4			0.0			0.0			0.0				0.0				0.0				1.5
Case reserve development above $250,000					20.7			5.5			0.0			0.0			0.0				0.0				0.0				1.9
Large losses subtotal					37.6	%		9.9	%		0.0	%		0.0	%		0.0	%			0.0	%			0.0	%			3.4	%
IBNR incurred					18.4			11.4			5.6			26.7			22.4				24.9				16.5				14.8
Total catastrophe losses incurred					0.0			0.0			0.0			0.0			0.0				0.0				0.0				0.0
Remaining incurred					9.4			21.1			46.7			32.8			29.1				31.3				38.0				32.3
Total loss ratio					65.4	%		42.4	%		52.3	%		59.5	%		51.5	%			56.2	%			54.5	%			50.5	%

*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.

2010 First-Quarter Supplement

Cincinnati Insurance Companies

Loss Claim Count

(Dollars in millions)	Three months ended													Six months ended			Nine months ended			Twelve months ended
	12/31/10	9/30/10	6/30/10	3/31/10		12/31/09		9/30/09		6/30/09		3/31/09		6/30/10	6/30/09		9/30/10	9/30/09		12/31/10	12/31/09
Consolidated Loss Claim Count
New losses greater than $4,000,000					1		2		4		4		2			6			10			12
New losses $1,000,000-$4,000,000					19		19		26		22		16			38			64			83
New losses $250,000-$1,000,000					123		107		130		114		149			263			393			500
Case reserve development above $250,000					77		122		81		108		89			197			278			400
Large losses total					220		250		241		248		256			504			745			995

Commercial Loss Claim Count
New losses greater than $4,000,000					1		2		3		4		2			6			9			11
New losses $1,000,000-$4,000,000					17		17		20		19		15			34			54			71
New losses $250,000-$1,000,000					95		77		101		92		112			204			305			382
Case reserve development above $250,000					67		108		74		93		77			170			244			352
Large losses total					180		204		198		208		206			414			612			816

Personal Loss Claim Count
New losses greater than $4,000,000					—		—		1		—		—			—			1			1
New losses $1,000,000-$4,000,000					2		2		6		3		1			4			10			12
New losses $250,000-$1,000,000					24		29		29		22		37			59			88			117
Case reserve development above $250,000					5		13		7		15		12			27			34			47
Large losses total					31		44		43		40		50			90			133			177
Excess & Surplus Loss Claim Count
New losses greater than $4,000,000					—		—		—		—		—			—			—			—
New losses $1,000,000-$4,000,000					—		—		—		—		—			—			—			—
New losses $250,000-$1,000,000					4		1		—		—		—			—			—			1
Case reserve development above $250,000					5		1		—		—		—			—			—			1
Large losses total					9		2		—		—		—			—			—			2

The sum of quarterly amounts may not equal the full year as each is computed independently.

* 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.

2010 First-Quarter Supplement

Consolidated Cincinnati Insurance Companies

Agency Direct Written Premiums by Risk State by Line of Business for the Three Months Ended March 31, 2010

(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		2010		2009		Change			Change			Change
Risk State	Casualty		Prop		Auto		Comp		Packages		Exec Risk		Equip		Auto		Owner			Personal		& Prop		Total		Total		%			%			%

AL	$	4.0	$	4.8	$	1.8	$	0.2	$	2.4	$	0.5	$	0.2	$	3.5	$	5.4		$	1.2	$	0.3	$	24.2	$	24.7		(4.3	)		(1.4	)		(2.0	)
AZ		2.5		1.8		2.1		0.7		0.3		0.2		0.3		0.3		0.3			0.1		0.3		8.7		8.5		(2.2	)		65.3			2.8
AR		2.0		2.8		1.7		1.1		1.2		0.4		0.1		0.7		0.7			0.2		0.2		11.2		11.3		(1.7	)		0.0			(0.5	)
CO		0.7		0.8		0.4		0.1		—		0.1		0.1		—		—			—		0.1		2.3		0.5		378.5			13.6			369.8
DE		0.5		0.4		0.4		0.7		0.1		—		—		—		—			—		—		2.3		1.5		51.5		nm				51.6
FL		5.5		5.9		2.7		0.4		0.5		0.7		0.2		2.4		3.3			0.7		0.3		22.8		26.1		(10.1	)		(20.3	)		(12.1	)
GA		7.0		5.7		4.8		3.7		1.9		1.4		0.3		7.3		6.5			2.0		0.7		41.4		41.9		(5.5	)		5.2			(1.4	)
ID		1.9		1.2		1.3		—		0.3		0.3		0.1		0.2		0.1			—		0.1		5.5		5.9		(14.2	)	nm				(7.7	)
IL		16.3		11.6		8.4		14.7		3.0		1.5		0.7		5.7		4.2			1.6		1.2		68.9		71.7		(6.9	)		10.1			(3.9	)
IN		11.8		9.8		6.4		6.5		2.0		1.5		0.9		5.9		5.4			1.5		1.3		52.8		58.8		(15.2	)		4.9			(10.1	)
IA		5.3		3.6		2.5		6.6		1.1		0.8		0.2		0.7		0.8			0.4		0.4		22.3		24.4		(11.1	)		5.8			(8.6	)
KS		2.3		2.5		1.3		2.7		0.8		0.4		0.1		0.9		1.1			0.3		0.1		12.5		13.0		(6.5	)		9.0			(3.6	)
KY		5.6		5.3		3.8		1.0		1.5		0.7		0.3		5.0		3.6			1.1		0.6		28.5		27.8		(2.9	)		11.8			2.7
MD		3.8		1.7		2.8		1.9		0.3		0.5		0.1		0.1		0.4			0.1		0.2		12.1		12.7		(6.4	)		22.3			(4.6	)
MI		7.6		5.5		3.5		4.5		2.8		1.4		0.5		2.7		2.8			0.7		0.4		32.4		33.7		(6.4	)		7.1			(3.5	)
MN		5.7		4.7		2.6		2.0		1.0		0.7		0.4		1.5		1.3			1.0		0.5		21.3		21.5		(3.2	)		3.7			(0.7	)
MO		4.9		5.2		3.1		2.7		1.5		0.6		0.3		0.8		1.1			0.3		0.5		21.1		22.1		(7.7	)		21.6			(4.4	)
MT		3.4		1.4		1.6		—		0.3		0.2		0.1		0.3		0.2			0.1		0.1		7.7		9.1		(17.7	)		54.8			(14.7	)
NE		1.9		1.9		0.9		1.8		0.5		0.3		0.1		0.2		0.2			0.1		0.2		7.9		8.0		(2.6	)		(18.1	)		(1.7	)
NH		0.8		0.5		0.3		0.9		0.2		0.1		—		0.1		0.1			0.1		0.1		3.4		2.9		16.1			11.4			18.6
NM		0.6		0.3		0.5		0.2		—		0.1		—		—		—			—		0.1		1.9		1.4		38.6		nm				38.1
NY		7.2		2.4		2.8		0.8		0.4		0.6		0.2		—		—			—		0.1		14.6		13.8		5.0			25.2			5.6
NC		7.9		6.7		4.9		5.3		3.6		1.8		0.5		2.1		1.7			1.0		0.4		35.7		37.5		(12.4	)		113.5			(4.7	)
ND		1.7		0.9		0.7		—		0.2		0.2		0.1		0.1		0.1			—		—		4.0		4.0		0.1			19.0			1.2
OH		37.9		22.6		14.2		—		5.6		5.7		1.5		25.1		17.9			7.0		1.6		138.7		145.5		(9.1	)		3.2			(4.4	)
PA		12.7		8.1		8.1		14.4		2.4		1.6		0.5		1.6		1.2			0.8		0.6		52.2		52.0		(0.8	)		3.8			0.2
SC		2.7		2.1		1.7		1.0		0.6		0.5		0.1		0.3		0.2			0.1		0.2		9.4		8.9		1.6			372.4			6.5
SD		0.5		0.5		0.4		0.9		0.1		0.1		—		—		—			—		—		2.6		4.2		(39.1	)		(86.6	)		(38.9	)
TN		6.8		5.4		3.8		3.0		2.7		1.1		0.3		2.2		2.3			0.8		0.4		28.7		27.3		2.3			17.5			5.2
TX		2.1		1.9		1.1		0.7		0.1		0.2		0.2		—		—			—		0.6		6.8		1.4		324.3		nm				354.1
UT		2.4		1.3		1.4		—		0.2		0.4		0.1		0.6		0.2			—		0.3		7.0		7.8		(18.0	)		212.5			(9.7	)
VT		1.0		0.8		0.7		2.0		0.2		0.3		—		0.1		0.1			0.1		0.1		5.4		5.8		(6.7	)		(3.4	)		(6.9	)
VA		9.5		7.1		5.3		5.5		1.4		1.5		0.4		2.1		1.7			0.6		0.5		35.4		35.5		(2.2	)		7.7			(0.4	)
WA		0.5		0.4		0.4		—		—		—		—		—		—			—		0.1		1.5		0.8		62.5		nm				69.3
WV		1.6		1.1		1.1		0.4		0.6		0.1		0.1		—		0.1			0.1		0.3		5.4		6.2		(15.9	)		(19.5	)		(13.3	)
WI		7.2		4.6		3.3		9.2		1.0		0.7		0.5		1.8		1.5			0.8		0.2		30.7		32.6		(7.8	)		6.3			(6.1	)
WY		—		—		—		—		—		0.1		—		—		—			—		—		0.1		0.2		(50.3	)		9.7			(46.4	)
All Other		0.7		0.6		0.7		1.2		—		0.3		—		—		—			—		—		3.6		4.7		(12.3	)		16.1			(12.2	)
Total	$	196.5	$	143.8	$	103.4	$	96.8	$	40.9	$	27.7	$	9.3	$	74.2	$	64.5		$	22.8	$	13.2	$	793.3	$	815.5		(5.7	)		6.8			(2.6	)
Other Direct		—		0.3		—		0.8		—		—		—		—		(0.2	)		—		—		0.9		1.8		(25.7	)		(116.8	)		(63.5	)
Total Direct	$	196.5	$	144.1	$	103.4	$	97.6	$	40.9	$	27.7	$	9.3	$	74.2	$	64.3		$	22.8	$	13.2	$	794.2	$	817.3		(5.7	)		6.0			(2.8	)

Surplus direct premiums written were $13.2 million and $7.6 million for the three months ended March 31, 2010 and 2009, 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.

2010 First-Quarter Supplement

Quarterly Property Casualty Data - Commercial Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/10	9/30/10	6/30/10	3/31/10			12/31/09			9/30/09			6/30/09			3/31/09			6/30/10	6/30/09			9/30/10	9/30/09			12/31/10	12/31/09
Commercial casualty:
Written premiums				$	191		$	156		$	168		$	171		$	209			$	379			$	548			$	704
Earned premiums					164			166			180			180			187				366				546				712
Loss and loss expenses ratio					58.3	%		64.7	%		45.0	%		54.2	%		55.2	%			54.7	%			51.5	%			54.6	%
Less catastrophe loss ratio					—			—			—			—			—				—				—				—
Loss and loss expenses excluding catastrophe loss ratio					58.3	%		64.7	%		45.0	%		54.2	%		55.2	%			54.7	%			51.5	%			54.6	%

Commercial property:
Written premiums				$	129		$	115		$	124		$	113		$	132			$	245			$	370			$	485
Earned premiums					121			122			122			120			121				241				362				485
Loss and loss expenses ratio					71.0	%		34.9	%		42.8	%		88.3	%		69.0	%			78.6	%			66.6	%			58.6	%
Less catastrophe loss ratio					8.3			(5.1	)		0.6			23.5			7.4				15.4				10.4				6.6
Loss and loss expenses excluding catastrophe loss ratio					62.7	%		40.0	%		42.2	%		64.8	%		61.6	%			63.2	%			56.2	%			52.1	%

Commercial auto:
Written premiums				$	103		$	93		$	92		$	94		$	110			$	204			$	296			$	388
Earned premiums					95			98			99			98			99				197				296				394
Loss and loss expenses ratio					61.0	%		69.3	%		67.9	%		62.5	%		59.7	%			61.1	%			63.4	%			64.9	%
Less catastrophe loss ratio					(1.0	)		0.4			(0.8	)		3.3			(0.1	)			1.6				0.8				0.7
Loss and loss expenses excluding catastrophe loss ratio					62.0	%		68.9	%		68.7	%		59.2	%		59.8	%			59.5	%			62.6	%			64.2	%

Workers' compensation:
Written premiums				$	95		$	71		$	69		$	79		$	104			$	183			$	252			$	323
Earned premiums					74			74			82			88			83				171				253				326
Loss and loss expenses ratio					91.4	%		137.1	%		110.2	%		130.2	%		117.5	%			124.0	%			119.5	%			123.5	%
Less catastrophe loss ratio					—			—			—			—			—				—				—				—
Loss and loss expenses excluding catastrophe loss ratio					91.4	%		137.1	%		110.2	%		130.2	%		117.5	%			124.0	%			119.5	%			123.5	%

Specialty package:
Written premiums				$	39		$	37		$	38		$	35		$	38			$	73			$	110			$	148
Earned premiums					37			37			37			37			35				72				110				147
Loss and loss expenses ratio				��	89.0	%		40.5	%		33.5	%		114.3	%		96.0	%			105.4	%			81.0	%			70.6	%
Less catastrophe loss ratio					1.1			(10.2	)		(18.2	)		68.8			13.7				41.9				21.5				13.4
Loss and loss expenses excluding catastrophe loss ratio					87.9	%		50.7	%		51.7	%		45.5	%		82.3	%			63.5	%			59.5	%			57.2	%

Surety and executive risk:
Written premiums				$	23		$	23		$	28		$	25		$	25			$	50			$	78			$	101
Earned premiums					24			27			27			25			25				50				77				104
Loss and loss expenses ratio					51.1	%		95.7	%		85.6	%		67.0	%		30.3	%			48.8	%			61.7	%			70.5	%
Less catastrophe loss ratio					—			—			—			—			—				—				—				—
Loss and loss expenses excluding catastrophe loss ratio					51.1	%		95.7	%		85.6	%		67.0	%		30.3	%			48.8	%			61.7	%			70.5	%

Machinery and equipment:
Written premiums				$	8		$	8		$	9		$	7		$	8			$	15			$	24			$	32
Earned premiums					8			8			8			8			7				15				23				31
Loss and loss expense ratio					6.1	%		(47.6	) %		38.4	%		39.7	%		59.3	%			49.3	%			45.6	%			21.6	%
Less catastrophe loss ratio					(1.0	)		(3.5	)		(0.1	)		1.2			4.5				2.8				1.8				0.5
Loss and loss expense excluding catastrophe loss ratio					7.1	%		(44.1	) %		38.5	%		38.5	%		54.8	%			46.5	%			43.8	%			21.1	%

*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.

2010 First-Quarter Supplement

Quarterly Property Casualty Data - Personal Lines

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/10	9/30/10	6/30/10	3/31/10			12/31/09			9/30/09			6/30/09			3/31/09			6/30/10	6/30/09			9/30/10	9/30/09			12/31/10	12/31/09
Personal auto:
Written premiums				$	73		$	77		$	90		$	89		$	68			$	157			$	246			$	324
Earned premiums					81			80			80			80			79				159				239				319
Loss and loss expenses ratio					58.2	%		71.8	%		64.9	%		75.7	%		63.6	%			69.7	%			68.1	%			69.0	%
Less catastrophe loss ratio					(0.1	)		(0.8	)		0.6			3.1			0.3				1.7				1.4				0.8
Loss and loss expenses excluding catastrophe loss ratio					58.3	%		72.6	%		64.3	%		72.6	%		63.3	%			68.0	%			66.7	%			68.2	%

Homeowner:
Written premiums				$	60		$	68		$	75		$	76		$	56			$	132			$	208			$	275
Earned premiums					70			69			68			70			70				140				207				276
Loss and loss expenses ratio					76.0	%		53.0	%		96.4	%		147.8	%		132.9	%			140.3	%			126.0	%			107.8	%
Less catastrophe loss ratio					6.9			(2.6	)		18.0			77.6			51.5				64.5				49.4				36.4
Loss and loss expenses excluding catastrophe loss ratio					69.1	%		55.6	%		78.4	%		70.2	%		81.4	%			75.8	%			76.6	%			71.4	%

Other personal:
Written premiums				$	22		$	22		$	25		$	25		$	21			$	45			$	70			$	92
Earned premiums					23			23			22			22			22				44				67				90
Loss and loss expenses ratio					51.5	%		33.8	%		33.8	%		42.6	%		37.8	%			40.2	%			38.0	%			36.9	%
Less catastrophe loss ratio					2.8			0.5			3.4			18.7			11.0				14.8				11.0				8.3
Loss and loss expenses excluding catastrophe loss ratio					48.7	%		33.3	%		30.4	%		23.9	%		26.8	%			25.4	%			27.0	%			28.6	%

2010 First-Quarter Supplement

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 March 31, 2010
Commercial casualty	$	96	$	25	$	121	$	(22	)	$	(4	)	$	(12	)	$	(38	)	$	74		$	(4	)	$	13		$	83
Commercial property		60		11		71		12			(2	)		—			10			72			(2	)		11			81
Commercial auto		51		10		61		(3	)		—			—			(3	)		48			—			10			58
Workers' compensation		57		10		67		(3	)		4			1			2			54			4			11			69
Specialty packages		18		4		22		11			(2	)		1			10			29			(2	)		5			32
Surety and executive risk		14		3		17		(8	)		2			—			(6	)		6			2			3			11
Machinery and equipment		1		—		1		(1	)		—			—			(1	)		—			—			—			—
Total commercial lines		297		63		360		(14	)		(2	)		(10	)		(26	)		283			(2	)		53			334

Personal auto		49		8		57		(10	)		—			—			(10	)		39			—			8			47
Homeowners		43		7		50		4			(5	)		—			(1	)		47			(5	)		7			49
Other personal		11		2		13		(3	)		—			—			(3	)		8			—			2			10
Total personal lines		103		17		120		(9	)		(5	)		—			(14	)		94			(5	)		17			106
Total property casualty group	$	400	$	80	$	480	$	(23	)	$	(7	)	$	(10	)	$	(40	)	$	377		$	(7	)	$	70		$	440

Ceded loss and loss expense incurred at March 31, 2010
Commercial casualty	$	61	$	—	$	61	$	(42	)	$	(13	)	$	(19	)	$	(74	)	$	19		$	(13	)	$	(19	)	$	(13	)
Commercial property		2		—		2		(4	)		(3	)		—			(7	)		(2	)		(3	)		—			(5	)
Commercial auto		—		—		—		—			—			—			—			—			—			—			—
Workers' compensation		3		—		3		(1	)		—			—			(1	)		2			—			—			2
Specialty packages		—		—		—		—			(1	)		—			(1	)		—			(1	)		—			(1	)
Surety and executive risk		1		—		1		(3	)		—			—			(3	)		(2	)		—			—			(2	)
Machinery and equipment		—		—		—		—			—			—			—			—			—			—			—
Total commercial lines		67		—		67		(50	)		(17	)		(19	)		(86	)		17			(17	)		(19	)		(19	)

Personal auto		—		—		—		—			—			—			—			—			—			—			—
Homeowners		—		—		—		—			(4	)		—			(4	)		—			(4	)		—			(4	)
Other personal		—		—		—		—			(2	)		—			(2	)		—			(2	)		—			(2	)
Total personal lines		—		—		—		—			(6	)		—			(6	)		—			(6	)		—			(6	)
Total property casualty group	$	67	$	—	$	67	$	(50	)	$	(23	)	$	(19	)	$	(92	)	$	17		$	(23	)	$	(19	)	$	(25	)

Net loss and loss expense incurred at March 31, 2010
Commercial casualty	$	35	$	25	$	60	$	20		$	9		$	7		$	36		$	55		$	9		$	32		$	96
Commercial property		58		11		69		16			1			—			17			74			1			11			86
Commercial auto		51		10		61		(3	)		—			—			(3	)		48			—			10			58
Workers' compensation		54		10		64		(2	)		4			1			3			52			4			11			67
Specialty packages		18		4		22		11			(1	)		1			11			29			(1	)		5			33
Surety and executive risk		13		3		16		(5	)		2			—			(3	)		8			2			3			13
Machinery and equipment		1		—		1		(1	)		��			—			(1	)		—			—			—			—
Total commercial lines		230		63		293		36			15			9			60			266			15			72			353

Personal auto		49		8		57		(10	)		—			—			(10	)		39			—			8			47
Homeowners		43		7		50		4			(1	)		—			3			47			(1	)		7			53
Other personal		11		2		13		(3	)		2			—			(1	)		8			2			2			12
Total personal lines		103		17		120		(9	)		1			—			(8	)		94			1			17			112
Total property casualty group	$	333	$	80	$	413	$	27		$	16		$	9		$	52		$	360		$	16		$	89		$	465

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

2010 First-Quarter Supplement

Consolidated Cincinnati Insurance Companies

Quarterly Property Casualty Data - Consolidated

(Dollars in millions)	Three months ended																		Six months ended				Nine months ended				Twelve months ended
	12/31/10	9/30/10	6/30/10	3/31/10			12/31/09			9/30/09			6/30/09			3/31/09			6/30/10	6/30/09			9/30/10	9/30/09			12/31/10	12/31/09
Premiums
Agency renewal written premiums				$	682		$	635		$	669		$	666		$	695			$	1,361			$	2,030			$	2,665
Agency new business written premiums					92			94			107			107			97				204				311				405
Other written premiums					(18	)		(49	)		(46	)		(50	)		(14	)			(64	)			(110	)			(159	)
Reported written premiums – statutory*				$	756		$	680		$	730		$	723		$	778			$	1,501			$	2,231			$	2,911
Unearned premium change					(48	)		33			3			10			(46	)			(36	)			(33	)			—
Earned premiums				$	708		$	713		$	733		$	733		$	732			$	1,465			$	2,198			$	2,911
Year over year change %
Agency renewal written premiums					(2	) %		(5	) %		(3	) %		(10	) %		(5	) %			(8	) %			(6	) %			(6	) %
Agency new business written premiums					(5	)		(6	)		15			7			28				17				16				10
Other written premiums					(29	)		6			13			(4	)		58				21				19				15
Reported written premiums – statutory*					(3	)		(5	)		0			(8	)		0				(4	)			(3	)			(3	)
Paid losses and loss expenses
Losses paid				$	334		$	381		$	390		$	412		$	401			$	813			$	1,203			$	1,584
Loss expenses paid					80			96			83			84			78				162				245				340
Loss and loss expenses paid				$	414		$	477		$	473		$	496		$	479			$	975			$	1,448			$	1,924
Statutory combined ratio
Loss ratio					54.3	%		49.9	%		50.2	%		71.6	%		62.5	%			67.0	%			61.4	%			58.6	%
Allocated loss expense ratio					6.0			7.4			6.1			6.7			4.9				5.8				5.9				6.3
Unallocated loss expense ratio					6.7			7.7			6.4			6.3			6.8				6.6				6.5				6.8
Net underwriting expense ratio					34.1			34.1			34.2			32.0			30.9				31.4				32.4				32.7
Statutory combined ratio					101.1	%		99.1	%		96.9	%		116.6	%		105.1	%			110.8	%			106.2	%			104.4	%
Contribution from catastrophe losses					2.1			(1.7	)		0.9			16.1			7.2				11.6				8.1				5.7
Statutory combined ratio excluding catastrophe losses					99.0	%		100.8	%		96.0	%		100.5	%		97.9	%			99.2	%			98.1	%			98.7	%
Commission expense ratio					18.4	%		20.4	%		20.1	%		18.2	%		17.7	%			17.9	%			18.7	%			19.0	%
Other expense ratio					15.7			13.7			14.1			13.8			13.2				13.5				13.7				13.7
Statutory expense ratio					34.1	%		34.1	%		34.2	%		32.0	%		30.9	%			31.4	%			32.4	%			32.7	%
GAAP combined ratio
GAAP combined ratio					102.6	%		98.6	%		95.1	%		116.6	%		107.5	%			112.1	%			106.4	%			104.5	%
Contribution from catastrophe losses					2.1			(1.7	)		0.9			16.1			7.2				11.6				8.1				5.7
GAAP combined ratio excluding catastrophe losses					100.5	%		100.3	%		94.2	%		100.5	%		100.3	%			100.5	%			98.3	%			98.8	%

*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.

2010 First-Quarter Supplement

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
	12/31/10	9/30/10	6/30/10	3/31/10			12/31/09			9/30/09			6/30/09			3/31/09			6/30/10	6/30/09			9/30/10	9/30/09			12/31/10	12/31/09
Premiums
Agency renewal written premiums				$	533		$	478		$	489		$	488		$	557			$	1,045			$	1,535			$	2,013
Agency new business written premiums					66			67			76			79			76				155				231				298
Other written premiums					(11	)		(42	)		(37	)		(43	)		(7	)			(51	)			(88	)			(130	)
Reported written premiums – statutory*				$	588		$	503		$	528		$	524		$	626			$	1,149			$	1,678			$	2,181
Unearned premium change					(65	)		29			27			32			(69	)			(37	)			(11	)			18
Earned premiums				$	523		$	532		$	555		$	556		$	557			$	1,112			$	1,667			$	2,199
Year over year change %
Agency renewal written premiums					(4	) %		(7	) %		(3	) %		(12	) %		(5	) %			(8	) %			(7	) %			(7	) %
Agency new business written premiums					(13	)		(19	)		0			(9	)		15				1				1				(4	)
Other written premiums					(57	)		7			10			(2	)		76				30				21				17
Reported written premiums – statutory*					(6	)		(9	)		(2	)		(12	)		0				(6	)			(5	)			(6	)
Paid losses and loss expenses
Losses paid				$	230		$	267		$	267		$	275		$	271			$	546			$	813			$	1,080
Loss expenses paid					63			76			66			67			60				126				192				268
Loss and loss expenses paid				$	293		$	343		$	333		$	342		$	331			$	672			$	1,005			$	1,348
Statutory combined ratio
Loss ratio					53.8	%		50.2	%		46.2	%		66.0	%		57.6	%			61.8	%			56.7	%			55.1	%
Allocated loss expense ratio					7.1			8.7			7.1			7.8			5.8				6.8				6.9				7.3
Unallocated loss expense ratio					6.6			7.9			6.0			5.7			6.4				6.0				6.0				6.5
Net underwriting expense ratio					31.9			35.1			35.6			32.5			29.2				30.8				32.2				32.9
Statutory combined ratio					99.3	%		102.0	%		94.9	%		112.0	%		99.0	%			105.4	%			101.8	%			101.8	%
Contribution from catastrophe losses					1.8			(1.8	)		(1.2	)		10.2			2.5				6.4				3.8				2.5
Statutory combined ratio excluding catastrophe losses					97.5	%		103.8	%		96.1	%		101.8	%		96.5	%			99.0	%			98.0	%			99.3	%
Commission expense ratio					17.2	%		20.0	%		20.3	%		18.1	%		16.4	%			17.2	%			18.2	%			18.6	%
Other expense ratio					14.7			15.1			15.3			14.4			12.8				13.5				14.0				14.3
Statutory expense ratio					31.9	%		35.1	%		35.6	%		32.5	%		29.2	%			30.7	%			32.2	%			32.9	%
GAAP combined ratio
GAAP combined ratio					102.1	%		100.8	%		92.4	%		110.9	%		102.2	%			106.6	%			101.9	%			101.6	%
Contribution from catastrophe losses					1.8			(1.8	)		(1.2	)		10.2			2.5				6.4				3.8				2.5
GAAP combined ratio excluding catastrophe losses					100.3	%		102.6	%		93.6	%		100.7	%		99.7	%			100.2	%			98.1	%			99.1	%

*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.

2010 First-Quarter Supplement

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
	12/31/10	9/30/10	6/30/10	3/31/10			12/31/09			9/30/09			6/30/09			3/31/09			6/30/10	6/30/09			9/30/10	9/30/09			12/31/10	12/31/09
Premiums
Agency renewal written premiums				$	143		$	153		$	177		$	176		$	137			$	313			$	490			$	642
Agency new business written premiums					18			20			21			19			14				34				55				75
Other written premiums					(6	)		(6	)		(8	)		(5	)		(6	)			(13	)			(21	)			(26	)
Reported written premiums – statutory*				$	155		$	167		$	190		$	190		$	145			$	334			$	524			$	691
Unearned premium change					19			5			(20	)		(18	)		26				9				(11	)			(6	)
Earned premiums				$	174		$	172		$	170		$	172		$	171			$	343			$	513			$	685
Year over year change %
Agency renewal written premiums					4	%		(2	) %		(4	) %		(5	) %		(6	) %			(6	) %			(5	) %			(4	) %
Agency new business written premiums					29			82			91			90			75				79				83				79
Other written premiums					0			25			33			0			(50	)			(30	)			5				10
Reported written premiums – statutory*					7			5			3			(1	)		(3	)			(2	)			0				1
Paid losses and loss expenses
Losses paid				$	103		$	112		$	121		$	137		$	130			$	267			$	389			$	501
Loss expenses paid					17			19			18			18			18				35				52				71
Loss and loss expenses paid				$	120		$	131		$	139		$	155		$	148			$	302			$	441			$	572
Statutory combined ratio
Loss ratio					55.3	%		49.4	%		63.1	%		90.1	%		78.3	%			84.2	%			77.1	%			70.2	%
Allocated loss expense ratio					1.9			2.7			2.4			2.4			1.9				2.2				2.2				2.4
Unallocated loss expense ratio					7.2			7.1			7.8			8.2			8.3				8.3				8.1				7.8
Net underwriting expense ratio					42.1			30.2			29.5			29.8			35.4				32.1				31.2				31.0
Statutory combined ratio					106.5	%		89.4	%		102.8	%		130.5	%		123.9	%			126.8	%			118.7	%			111.4	%
Contribution from catastrophe losses					3.0			(1.4	)		7.9			35.4			22.6				29.0				22.0				16.1
Statutory combined ratio excluding catastrophe losses					103.5	%		90.8	%		94.9	%		95.1	%		101.3	%			97.8	%			96.7	%			95.3	%
Commission expense ratio					22.4	%		20.9	%		19.1	%		18.0	%		22.5	%			20.0	%			19.6	%			20.0	%
Other expense ratio					19.7			9.3			10.4			11.7			12.9				12.2				11.6				11.0
Statutory expense ratio					42.1	%		30.2	%		29.5	%		29.7	%		35.4	%			32.2	%			31.2	%			31.0	%
GAAP combined ratio
GAAP combined ratio					102.5	%		90.9	%		102.3	%		133.2	%		120.7	%			126.9	%			118.7	%			111.8	%
Contribution from catastrophe losses					3.0			(1.4	)		7.9			35.4			22.6				29.0				22.0				16.1
GAAP combined ratio excluding catastrophe losses					99.5	%		92.3	%		94.4	%		97.8	%		98.1	%			97.9	%			96.7	%			95.7	%

*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.

2010 First-Quarter Supplement

The Cincinnati Life Insurance Company

Statutory Statements of Income

	For the Three Months Ended March 31,
(Dollars in millions)	2010			2009			Change			% Change

Net premiums written	$	104		$	48		$	56			115
Net investment income		33			30			3			12
Amortization of interest maintenance reserve		(1	)		(2	)		1			59
Commissions and expense allowances on reinsurance ceded		2			2			—			(10	)
Income from fees associated with Separate Accounts		1			1			—			(14	)
Total revenues	$	139		$	79		$	60			76

Death benefits and matured endowments	$	13		$	17		$	(4	)		(25	)
Annuity benefits		9			10			(1	)		(4	)
Disability benefits and benefits under accident and health contracts		1			—			1			nm
Surrender benefits and group conversions		5			5			—			1
Interest and adjustments on deposit-type contract funds		3			3			—			(8	)
Increase in aggregate reserves for life and accident and health contracts		84			28			56			205
Total benefit expenses	$	115		$	63		$	52			82

Commissions	$	12		$	8		$	4			43
General insurance expenses and taxes		10			9			1			11
Increase in loading on deferred and uncollected premiums		(1	)		—			(1	)		nm
Net transfers from Separate Accounts		—			(2	)		2			nm
Total operating expenses	$	21		$	15		$	6			41

Federal and foreign income tax benefit		(4	)		(3	)		(1	)		(19	)

Net gain from operations before realized capital gains or (losses)	$	7		$	4		$	3			64

Net realized gains or (losses) net of capital gains tax		2			(6	)		8			nm

Net income (loss) (statutory)	$	9		$	(2	)	$	11			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.

2010 First-Quarter Supplement

Cincinnati Financial (CINF) 8-KCincinnati Financial Reports First-Quarter 2010 Results