Cincinnati Financial (CINF) 8-K Cincinnati Financial Reports Second-Quarter 2010 Results

Cincinnati Financial Corporation

Supplemental Financial Data

for the period ending June 30, 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 July 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

Second Quarter 2010

		Page
	Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures	3
Consolidated
	Quick Reference	4
	CFC and Subsidiaries Consolidation – Six Months Ended June 30, 2010	5
	CFC and Subsidiaries Consolidation – Three Months Ended June 30, 2010	6
	CFC Insurance Subsidiaries – Selected Balance Sheet Data	7
Consolidated Property Casualty Insurance Operations
(Includes Cincinnati Specialty Underwriters Insurance Company (CSU))
	Statutory Statements of Income	8
	Cincinnati Insurance Companies – Losses Incurred Detail	9
	Cincinnati Insurance Companies – Loss Ratio Detail	10
	Cincinnati Insurance Companies – Loss Claim Count Detail	11
	Direct Written Premiums by Line of Business and State	12
	Quarterly Property Casualty Data – Commercial Lines of Business	13
	Quarterly Property Casualty Data – Personal Lines of Business	14
	Loss and Loss Expense Analysis	15
Reconciliation Data
	Quarterly Property Casualty Data – Consolidated	16
	Quarterly Property Casualty Data – Commercial Lines	17
	Quarterly Property Casualty Data – Personal Lines	18
Life Insurance Operations
	Statutory Statements of Income	19

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.

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Cincinnati Financial Corporation

Quick Reference - Second Quarter 2010

(all data shown is for the three months ended or as of June 30, 2010)

	6/30/2010			Year over year  change %				6/30/2010			Year over year  change %
Revenues:							Benefits and expenses:
Commercial lines net written premiums	$	532			2		Commercial lines loss and loss expenses	$	378		(14	)
Personal lines net written premiums		204			7		Personal lines loss and loss expenses		163		(6	)
Surplus lines net written premiums		13			31		Surplus lines loss and loss expenses		12		200
Property casualty net written premiums		749			4		Life and accident and health losses and policy benefits		43		10
Life and accident and health net written premiums		44			3		Underwriting, acquisition and insurance expenses		246		nm
Annuity net written premiums		51			70		Other operating expenses		3		(30	)
Life, annuity and accident and health net written premiums		95			31		Interest expenses		13		(3	)
Commercial lines net earned premiums		538			(3	)	Total expenses		857		(7	)
Personal lines net earned premiums		179			4		Net income before income taxes		21		nm
Surplus lines net earned premiums		11			120		Total income tax		(6	)	81
Property casualty net earned premiums		728			(1	)
Life and accident and health net earned premiums		40			8		Balance Sheet:
Investment income		130			9
Realized gains on investments		(23	)		(28	)	Fixed maturity investments	$	8,339
Other income		3		nm			Equity securities		2,611
Total revenues		878		0			Short-term investments		-
							Other invested assets		82
Income:							Total invested assets	$	11,032
							Equity in net assets of subsidiaries	$	4,467
Operating income	$	42		nm			Loss and loss expense reserves	$	4,184
Net realized investment gains and losses		(15	)		(7	)	Total debt		839
Net income		27		nm			Shareholders' equity		4,737
Per share (diluted):							Key ratios:
Operating income	$	0.26		nm			Commercial lines GAAP combined ratio		101.7	%
Net realized investment gains and losses		(0.09	)	nm			Personal lines GAAP combined ratio		123.4
Net income		0.17		nm			Property casualty GAAP combined ratio		107.6
Book value		29.13			14
Weighted average shares – diluted		163,284,013		nm			Commercial lines STAT combined ratio		102.0	%
							Personal lines STAT combined ratio		121.2
							Property casualty STAT combined ratio		107.3
							Value creation ratio		(1.1	) %

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Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Six Months Ended June 30, 2010

(In millions)	CFC			CONSOL P&C			CLIC			CFC-I			CINFIN			C-SUPR		ELIM			Total
Revenues:
Premiums earned:
Property casualty	$	-		$	1,518		$	-		$	-		$	-		$	-	$	-		$	1,518
Life		-			-			100			-			-			-		-			100
Accident health		-			-			4			-			-			-		-			4
Premiums ceded		-			(82	)		(25	)		-			-			-		-			(107	)
Total earned premium		-			1,436			79			-			-			-		-			1,515
Investment income		21			174			65			-			-			-		-			260
Realized gain on investments		1			(13	)		(2	)		(1	)		-			-		-			(15	)
Other income		7			2			-			4			-			7		(15	)		5
Total revenues	$	29		$	1,599		$	142		$	3		$	-		$	7	$	(15	)	$	1,765
Benefits & expenses:
Losses & policy benefits	$	-		$	984		$	115		$	-		$	-		$	-	$	(3	)	$	1,096
Reinsurance recoveries		-			44			(29	)		-			-			-		-			15
Underwriting, acquisition and insurance expenses		-			482			32			-			-			-		-			514
Other operating expenses		12			-			-			2			-			6		(13	)		7
Interest expense		26			-			-			1			-			-		-			27
Total expenses	$	38		$	1,510		$	118		$	3		$	-		$	6	$	(16	)	$	1,659
Income (loss) before income taxes	$	(9	)	$	89		$	24		$	-		$	-		$	1	$	1		$	106
Provision (benefit) for income taxes:
Current operating income	$	3		$	28		$	(2	)	$	1		$	-		$	-	$	-		$	30
Capital gains/losses		-			(4	)		(1	)		-			-			-		-			(5	)
Deferred		(9	)		(16	)		11			-			-			-		-			(14	)
Total provision for income taxes	$	(6	)	$	8		$	8		$	1		$	-		$	-	$	-		$	11
Operating income (loss)	$	(4	)	$	90		$	17		$	-		$	-		$	1	$	1		$	105
Net income (loss) - current year	$	(3	)	$	81		$	16		$	(1	)	$	-		$	1	$	1		$	95
Net income (loss) - prior year	$	40		$	(18	)	$	(4	)	$	-		$	(1	)	$	-	$	-		$	17

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

2010 Second-Quarter Supplement

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Cincinnati Financial Corporation and Subsidiaries

Consolidated Statements of Income for the Three Months Ended June 30, 2010

(In millions)	CFC			CONSOL P&C			CLIC			CFC-I		CINFIN		C-SUPR		ELIM			Total
Revenues:
Premiums earned:
Property casualty	$	-		$	771		$	-		$	-	$	-	$	-	$	-		$	771
Life		-			-			52			-		-		-		-			52
Accident health		-			-			2			-		-		-		-			2
Premiums ceded		-			(43	)		(14	)		-		-		-		-			(57	)
Total earned premium		-			728			40			-		-		-		-			768
Investment income		10			87			33			-		-		-		-			130
Realized gain (loss) on investments		(6	)		(17	)		-			-		-		-		-			(23	)
Other income		3			1			1			2		-		4		(8	)		3
Total revenues	$	7		$	799		$	74		$	2	$	-	$	4	$	(8	)	$	878
Benefits & expenses:
Losses & policy benefits	$	-		$	533		$	57		$	-	$	-	$	-	$	(2	)	$	588
Reinsurance recoveries		-			21			(14	)		-		-		-		-			7
Underwriting, acquisition and insurance expenses		-			229			16			1		-		-		-			246
Other operating expenses		5			-			-			-		-		4		(6	)		3
Interest expense		13			-			-			-		-		-		-			13
Total expenses	$	18		$	783		$	59		$	1	$	-	$	4	$	(8	)	$	857
Income before income taxes	$	(11	)	$	17		$	14		$	1	$	-	$	-	$	-		$	21
Provision (benefit) for income taxes:
Current operating income	$	5		$	11		$	1		$	1	$	-	$	-	$	-		$	18
Capital gains/losses		(2	)		(6	)		-			-		-		-		-			(8	)
Deferred		(8	)		(12	)		4			-		-		-		-			(16	)
Total provision (benefit) for income taxes	$	(5	)	$	(7	)	$	5		$	1	$	-	$	-	$	-		$	(6	)
Operating income (loss)	$	(2	)	$	35		$	9		$	-	$	-	$	-	$	-		$	42
Net income - current year	$	(6	)	$	24		$	9		$	-	$	-	$	-	$	-		$	27
Net income (loss)- prior year	$	(10	)	$	(14	)	$	5		$	-	$	-	$	-	$	-		$	(19	)

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

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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)							$	5,804		$	5,759	$	5,663	$	5,521	$	5,169		$	4,804
Equities (fair value)								1,862			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)								363			287		242		301		25			(36	)
Equities - pretax net unrealized gain								457			635		592		594		487			347
Loss and loss expense reserves - STAT								3,781			3,689		3,639		3,656		3,674			3,555
Equity GAAP								4,429			4,506		4,405		4,283		3,795			3,512
Surplus - STAT								3,537			3,692		3,648		3,472		3,241			3,105
The Cincinnati Life Insurance Company
Fixed maturities (fair value)							$	2,259		$	2,055	$	1,927	$	1,868	$	1,694		$	1,534
Equities (fair value)								100			114		108		123		103			89
Short-term investments (fair value)								-			-		-		1		1			-
Fixed maturities - pretax net unrealized gain (loss)								156			110		72		67		(43	)		(94	)
Equities - pretax net unrealized gain (loss)								(7	)		7		1		11		(8	)		(27	)
Equity - GAAP								729			700		666		653		563			454
Surplus - STAT								307			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	)		-		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 Second-Quarter Supplement

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Consolidated Cincinnati Insurance Companies

Statutory Statements of Income

	For the Three Months Ended June 30,												For the Six Months Ended June 30,
(Dollars in millions)	2010			2009			Change			% Change			2010			2009			Change			% Change
Underwriting income
Net premiums written	$	750		$	723		$	27			4		$	1,505		$	1,501		$	4			0
Unearned premiums increase		22			(10	)		32		nm				69			36			33			92
Earned premiums	$	728		$	733		$	(5	)		(1	)	$	1,436		$	1,465		$	(29	)		(2	)
Losses incurred	$	475		$	524		$	(49	)		(9	)	$	859		$	982		$	(123	)		(13	)
Allocated loss expenses incurred		41			49			(8	)		(16	)		84			85			(1	)		(1	)
Unallocated loss expenses incurred		38			46			(8	)		(17	)		85			96			(11	)		(11	)
Other underwriting expenses incurred		231			226			5			2			485			462			23			5
Workers compensation dividend incurred		3			6			(3	)		(50	)		7			10			(3	)		(30	)
Total underwriting deductions	$	788		$	851		$	(63	)	nm			$	1,520		$	1,635		$	(115	)		(7	)
Net underwriting losses	$	(60	)	$	(118	)	$	58			49		$	(84	)	$	(170	)	$	86			51
Investment income
Gross investment income earned	$	90		$	81		$	9			11		$	180		$	167		$	13			8
Net investment income earned		88			80			8			10			177			165			12			7
Net realized capital gains (losses)		(8	)		(6	)		(2	)		(33	)		(6	)		(39	)		33			85
Net investment gains (excl. subs)	$	80		$	74		$	6			8		$	171		$	126		$	45			36
Dividend from subsidiary		-			-			-		nm				-			-			-		nm
Net investment gains (net of tax)	$	80		$	74		$	6			8		$	171		$	126		$	45			36
Other income	$	1		$	1		$	-		nm			$	2		$	2		$	-		nm
Net income before federal income taxes	$	21		$	(43	)	$	64		nm			$	89		$	(42	)	$	131		nm
Federal and foreign income taxes incurred	$	9		$	(29	)	$	38		nm			$	26		$	(30	)	$	56		nm
Net income (statutory)	$	12		$	(14	)	$	26		nm			$	63		$	(12	)	$	75		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 Second-Quarter Supplement 

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Cincinnati Insurance Companies

Losses Incurred Detail

(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			$	11	$	6	$	9		$	18		$	21	$	9		$	17	$	30			$	48			$	57
New losses $1,000,000-$4,000,000				30		35		37			43			39		28			64		67				110				147
New losses $250,000-$1,000,000				52		52		48			55			47		62			104		109				164				212
Case reserve development above $250,000				30		37		89			51			70		56			68		125				177				265
Large losses subtotal			$	123	$	130	$	183		$	167		$	177	$	155		$	253	$	331			$	499			$	681
IBNR incurred				11		12		19			12			39		18			23		58				69				89
Catastrophe losses incurred				99		15		(12	)		7			118		53			114		171				177				165
Remaining incurred				241		228		166			182			191		232			468		422				605				771
Total losses incurred			$	474	$	385	$	356		$	368		$	525	$	458		$	858	$	982			$	1,350			$	1,706
Commercial Loss Detail
New losses greater than $4,000,000			$	11	$	6	$	9		$	13		$	21	$	9		$	17	$	30			$	43			$	52
New losses $1,000,000-$4,000,000				22		32		34			33			36		26			54		62				96				130
New losses $250,000-$1,000,000				40		40		35			43			39		47			80		86				129				164
Case reserve development above $250,000				29		32		83			49			63		51			61		114				163				245
Large losses subtotal			$	102	$	110	$	161		$	138		$	159	$	133		$	212	$	292			$	431			$	591
IBNR incurred				7		9		28			11			37		18			17		56				67				95
Catastrophe losses incurred				57		10		(10	)		(7	)		57		14			66		71				64				54
Remaining incurred				152		152		88			113			113		156			304		268				382				470
Total losses incurred			$	318	$	281	$	267		$	255		$	366	$	321		$	599	$	687			$	944			$	1,210
Personal Loss Detail
New losses greater than $4,000,000			$	-	$	-	$	-		$	5		$	-	$	-		$	-	$	-			$	5			$	5
New losses $1,000,000-$4,000,000				7		3		3			10			3		2			10		5				14				17
New losses $250,000-$1,000,000				10		10		13			12			8		15			20		23				35				48
Case reserve development above $250,000				1		3		5			2			7		5			4		11				14				19
Large losses subtotal			$	18	$	16	$	21		$	29		$	18	$	22		$	34	$	39			$	68			$	89
IBNR incurred				2		1		(10	)		-			-		(1	)		2		(1	)			(1	)			(11	)
Catastrophe losses incurred				43		5		(2	)		14			61		39			48		100				113				111
Remaining incurred				83		75		76			65			76		75			159		151				216				292
Total losses incurred			$	146	$	97	$	85		$	108		$	155	$	135		$	243	$	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				3		2		-			-			-		-			5		-				-				-
Case reserve development above $250,000				-		2		1			-			-		-			2		-				-				1
Large losses subtotal			$	3	$	4	$	1		$	-		$	-	$	-		$	7	$	-			$	-			$	1
IBNR incurred				2		2		1			1			2		1			5		3				3				5
Catastrophe losses incurred				-		-		-			-			-		-			-		-				-				-
Remaining incurred				4		1		2			4			2		1			4		3				7				9
Total losses incurred			$	9	$	7	$	4		$	5		$	4	$	2		$	16	$	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 Second-Quarter Supplement

9

Cincinnati Insurance Companies

Loss Ratio Detail

	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				1.5	%		0.8	%		1.3	%		2.5	%		2.8	%		1.3	%		1.2	%		2.0	%			2.2	%			2.0	%
New losses $1,000,000-$4,000,000				4.0			4.9			5.2			5.9			5.3			3.8			4.6			4.5				5.0				5.1
New losses $250,000-$1,000,000				7.2			7.4			6.7			7.5			6.4			8.4			7.2			7.5				7.4				7.3
Case reserve development above $250,000				4.2			5.3			12.4			7.0			9.6			7.6			4.7			8.5				8.0				9.0
Large losses subtotal				16.9	%		18.4	%		25.6	%		22.9	%		24.1	%		21.1	%		17.7	%		22.5	%			22.6	%			23.4	%
IBNR incurred				1.6			1.7			2.7			1.7			5.3			2.5			1.6			3.9				3.2				3.0
Total catastrophe losses incurred				13.6			2.1			(1.7	)		0.9			16.1			7.2			7.9			11.6				8.1				5.7
Remaining incurred				33.0			32.1			23.3			24.7			26.1			31.7			32.6			29.0				27.5				26.5
Total loss ratio				65.1	%		54.3	%		49.9	%		50.2	%		71.6	%		62.5	%		59.8	%		67.0	%			61.4	%			58.6	%
Commercial Loss Ratio
New losses greater than $4,000,000				2.0	%		1.1	%		1.7	%		2.4	%		3.7	%		1.7	%		1.6	%		2.7	%			2.6	%			2.4	%
New losses $1,000,000-$4,000,000				4.1			6.1			6.4			6.1			6.5			4.7			5.1			5.6				5.8				5.9
New losses $250,000-$1,000,000				7.4			7.7			6.5			7.8			7.0			8.4			7.5			7.7				7.8				7.5
Case reserve development above $250,000				5.4			6.2			15.5			8.8			11.4			9.1			5.8			10.3				9.8				11.1
Large losses subtotal				18.9	%		21.1	%		30.1	%		25.1	%		28.6	%		23.9	%		20.0	%		26.3	%			26.0	%			26.9	%
IBNR incurred				1.3			1.8			5.3			2.0			6.7			3.3			1.6			5.0				4.0				4.3
Total catastrophe losses incurred				10.5			1.8			(1.8	)		(1.2	)		10.3			2.5			6.2			6.4				3.8				2.5
Remaining incurred				28.3			29.0			16.6			20.3			20.4			27.9			28.6			24.1				22.9				21.4
Total loss ratio				59.0	%		53.7	%		50.2	%		46.2	%		66.0	%		57.6	%		56.4	%		61.8	%			56.7	%			55.1	%
Personal Loss Ratio
New losses greater than $4,000,000				0.0	%		0.0	%		0.0	%		2.9	%		0.0	%		0.0	%		0.0	%		0.0	%			1.0	%			0.7	%
New losses $1,000,000-$4,000,000				4.4			1.5			1.6			5.7			1.9			0.8			3.0			1.4				2.8				2.5
New losses $250,000-$1,000,000				5.6			5.5			7.5			7.0			4.8			8.6			5.6			6.7				6.7				6.9
Case reserve development above $250,000				0.6			1.9			3.2			1.3			3.7			3.0			1.2			3.3				2.7				2.9
Large losses subtotal				10.6	%		8.9	%		12.3	%		16.9	%		10.4	%		12.4	%		9.8	%		11.4	%			13.2	%			13.0	%
IBNR incurred				0.9			0.3			(5.7	)		(0.2	)		0.1			(0.6	)		0.6			(0.3	)			(0.3	)			(1.6	)
Total catastrophe losses incurred				23.8			3.0			(1.4	)		7.9			35.4			22.6			13.5			29.0				22.0				16.1
Remaining incurred				47.1			43.1			44.2			38.5			44.2			43.9			45.1			44.1				42.2				42.7
Total loss ratio				82.4	%		55.3	%		49.4	%		63.1	%		90.1	%		78.3	%		69.0	%		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	%			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				0.0				0.0
New losses $250,000-$1,000,000				22.8			16.9			4.4			0.0			0.0			0.0			19.9			0.0				0.0				1.5
Case reserve development above $250,000				2.7			20.7			5.5			0.0			0.0			0.0			11.6			0.0				0.0				1.9
Large losses subtotal				25.5	%		37.6	%		9.9	%		0.0	%		0.0	%		0.0	%		31.5	%		0.0	%			0.0	%			3.4	%
IBNR incurred				23.5			18.4			11.4			5.6			26.7			22.4			23.7			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				0.0				0.0
Remaining incurred				32.5			9.4			21.1			46.7			32.8			29.1			18.3			31.3				38.0				32.3
Total loss ratio				81.5	%		65.4	%		42.4	%		52.3	%		59.5	%		51.5	%		73.5	%		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 Second-Quarter Supplement

10

Cincinnati Insurance Companies

Loss Claim Count Detail

	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				2		1		2		4		4		2		3		6			10			12
New losses $1,000,000-$4,000,000				18		19		19		26		22		16		37		38			64			83
New losses $250,000-$1,000,000				117		123		107		130		114		149		240		263			393			500
Case reserve development above $250,000				73		77		122		81		108		89		150		197			278			400
Large losses total				210		220		250		241		248		256		430		504			745			995
Commercial Loss Claim Count
New losses greater than $4,000,000				2		1		2		3		4		2		3		6			9			11
New losses $1,000,000-$4,000,000				12		17		17		20		19		15		29		34			54			71
New losses $250,000-$1,000,000				88		95		77		101		92		112		183		204			305			382
Case reserve development above $250,000				70		67		108		74		93		77		137		170			244			352
Large losses total				172		180		204		198		208		206		352		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				6		2		2		6		3		1		8		4			10			12
New losses $250,000-$1,000,000				24		24		29		29		22		37		48		59			88			117
Case reserve development above $250,000				2		5		13		7		15		12		7		27			34			47
Large losses total				32		31		44		43		40		50		63		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				5		4		1		-		-		-		9		-			-			1
Case reserve development above $250,000				1		5		1		-		-		-		6		-			-			1
Large losses total				6		9		2		-		-		-		15		-			-			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 Second-Quarter Supplement 

11

Consolidated Cincinnati Insurance Companies

 Agency Direct Written Premiums by Risk State by Line of Business for the Six Months Ended June 30, 2010

(Dollars in millions)	Standard Market																				Surplus Lines						Standard Market						*Consolidated
	Commercial Lines														Personal Lines						Commercial		Consolidated				Commercial			Personal			Total
	Comm Casualty		Comm		Comm		Workers'		Specialty		Surety &		Mach. &		Pers		Home		Other		Casualty		2010		2009		Change			Change			Change
Risk State			Prop		Auto		Comp		Packages		Exec Risk		Equip		Auto		Owner		Personal		& Prop		Total		Total		%			%			%
AL	$	8.6	$	9.3	$	3.7	$	0.3	$	4.4	$	1.0	$	0.5	$	8.1	$	12.3	$	2.8	$	0.9	$	51.7	$	51.1		0.7			(0.2	)		1.3
AZ		4.9		3.6		4.4		0.8		0.4		0.4		0.4		0.6		0.5		0.2		0.5		16.7		16.5		(3.7	)		60.0			1.3
AR		4.1		5.5		3.2		1.8		2.3		0.7		0.3		1.6		1.7		0.6		0.5		22.2		21.9		(2.2	)		13.5			1.2
CO		1.5		1.9		0.9		0.2		-		0.2		0.1		-		0.1		-		0.3		5.1		0.7		592.7			10.0			558.4
DE		1.1		0.9		0.9		1.5		0.2		0.1		0.1		-		-		-		-		4.6		3.1		47.1		nm				47.2
FL		11.1		11.4		4.6		0.5		1.0		1.3		0.5		4.9		7.0		1.4		0.9		44.6		48.1		(5.1	)		(17.6	)		(7.4	)
GA		12.7		10.7		9.2		6.6		4.0		3.0		0.6		15.8		14.4		4.3		2.0		83.2		83.3		(4.3	)		4.5			(0.1	)
ID		3.8		2.4		2.8		-		0.5		0.5		0.1		0.5		0.3		0.1		0.2		11.3		11.0		(5.9	)		594.3			2.4
IL		29.6		21.5		14.8		26.2		6.0		3.5		1.5		13.1		10.0		3.5		2.2		132.0		135.4		(5.5	)		9.7			(2.4	)
IN		20.9		18.3		11.2		12.1		4.0		3.2		1.3		13.7		12.7		3.6		3.0		104.1		108.1		(8.1	)		6.2			(3.6	)
IA		9.9		6.7		4.9		10.5		2.2		1.5		0.6		1.8		1.8		0.9		0.5		41.4		44.0		(8.5	)		8.4			(6.1	)
KS		4.1		4.5		2.4		4.5		1.7		0.8		0.3		2.2		2.8		0.6		0.3		24.1		23.2		2.0			8.9			4.0
KY		10.6		10.9		6.8		1.7		2.9		1.5		0.5		11.1		8.3		2.4		1.1		57.9		56.2		(2.2	)		10.6			3.0
MD		6.4		3.6		5.0		4.2		0.7		0.9		0.2		0.3		0.9		0.3		0.6		23.2		23.2		(2.7	)		23.1			(0.1	)
MI		14.5		10.7		6.9		7.5		5.4		3.1		0.9		6.3		6.8		1.6		1.4		65.3		65.6		(3.6	)		7.7			(0.5	)
MN		10.3		8.4		4.5		3.9		1.8		1.1		0.6		3.6		3.2		1.6		0.8		39.7		39.5		(2.5	)		9.8			0.4
MO		10.6		9.9		6.1		6.1		3.0		1.4		0.6		1.9		2.5		0.6		1.2		43.8		44.9		(6.4	)		21.4			(2.4	)
MT		6.0		3.5		3.4		0.1		0.6		0.3		0.2		0.7		0.6		0.1		0.2		15.7		16.5		(8.3	)		47.9			(4.8	)
NE		3.4		3.1		2.1		3.4		0.8		0.6		0.2		0.3		0.4		0.2		0.3		14.7		14.5		0.7			(9.7	)		1.4
NH		1.7		1.0		0.6		1.3		0.5		0.2		0.1		0.4		0.4		0.2		0.3		6.6		5.8		12.1			11.1			14.2
NM		1.3		0.5		0.8		0.3		0.1		0.3		-		-		-		-		0.2		3.5		3.3		0.7		nm				5.6
NY		16.7		5.3		6.1		1.2		0.8		1.6		0.4		-		-		-		0.4		32.5		32.5		(0.7	)	nm				(0.1	)
NC		15.2		13.4		9.9		10.3		7.0		3.8		0.9		4.9		3.9		2.0		1.0		72.3		71.0		(6.6	)		99.5			2.0
ND		2.8		1.6		1.3		-		0.4		0.4		0.1		0.2		0.2		0.1		0.1		7.2		7.5		(5.2	)		7.6			(4.0	)
OH		67.3		45.4		30.7		-		10.7		11.9		2.6		59.3		42.6		15.8		3.7		290.0		295.0		(5.4	)		2.8			(1.7	)
PA		23.7		16.0		15.9		26.3		5.0		3.3		1.0		3.6		2.9		1.7		1.4		100.8		98.7		1.3			3.5			2.2
SC		5.1		4.2		3.2		2.1		1.5		1.1		0.2		0.7		0.5		0.2		0.4		19.2		18.5		(2.7	)		336.6			3.9
SD		1.1		1.0		0.9		1.4		0.3		0.2		0.1		-		-		-		0.1		5.0		7.8		(36.5	)	nm				(36.3	)
TN		12.1		10.3		7.3		5.1		5.1		2.4		0.7		4.8		5.1		1.9		0.8		55.5		52.9		1.9			15.2			4.9
TX		6.1		6.1		3.5		1.0		0.3		0.5		0.5		-		-		-		1.4		19.4		6.3		196.9		nm				214.9
UT		4.8		2.3		2.9		-		0.4		1.3		0.2		1.3		0.5		0.1		0.7		14.6		14.1		(7.8	)		214.9			3.0
VT		2.0		1.6		1.5		3.7		0.4		0.5		0.1		0.4		0.4		0.1		0.2		10.8		10.9		(2.9	)		10.1			(1.5	)
VA		15.7		12.5		9.8		9.0		2.5		3.1		0.6		4.6		3.8		1.4		0.9		64.1		64.0		(1.6	)		6.0			0.1
WA		1.0		0.7		0.8		-		-		0.3		0.1		-		-		-		0.1		3.0		1.8		58.5		nm				62.5
WV		3.0		2.3		2.2		1.0		1.1		0.3		0.1		-		0.3		0.1		0.7		11.1		11.0		(1.1	)		(12.7	)		0.7
WI		12.8		8.5		6.3		15.3		2.0		1.3		0.8		4.4		3.5		1.7		0.9		57.5		59.7		(6.1	)		5.5			(3.7	)
WY		0.2		0.1		0.1		-		-		-		-		-		-		-		-		0.4		0.5		(1.2	)		9.7			1.4
All Other		1.4		1.4		1.1		2.0		0.1		0.6		0.1		-		-		-		-		6.6		7.4		(9.6	)		55.1			(9.5	)
Total	$	368.2	$	280.5	$	202.9	$	171.6	$	80.0	$	58.2	$	17.9	$	171.1	$	150.6	$	50.1	$	30.0	$	1,581.4	$	1,575.5		(2.6	)		7.1			0.4
Other Direct		-		0.6		-		1.9		-		-		-		-		0.1		-		-		2.6		4.4		(11.5	)		(92.8	)		(41.4	)
Total Direct	$	368.2	$	281.1	$	202.9	$	173.5	$	80.0	$	58.2	$	17.9	$	171.1	$	150.7	$	50.1	$	30.0	$	1,584.0	$	1,579.9		(2.6	)		6.7			0.3

Surplus direct premiums written were $30.0 million and $17.9 million for the six months ended June 30, 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 Second-Quarter Supplement

12

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			$	168		$	191		$	156		$	168		$	171		$	209		$	359		$	379			$	548			$	704
Earned premiums				172			164			166			180			180			187			336			366				546				712
Loss and loss expenses ratio				48.3	%		58.3	%		64.7	%		45.0	%		54.2	%		55.2	%		53.2	%		54.7	%			51.5	%			54.6	%
Less catastrophe loss ratio				-			-			-			-			-			-			-			-				-				-
Loss and loss expenses excluding catastrophe loss ratio				48.3	%		58.3	%		64.7	%		45.0	%		54.2	%		55.2	%		53.2	%		54.7	%			51.5	%			54.6	%
Commercial property:
Written premiums			$	124		$	129		$	115		$	124		$	113		$	132		$	253		$	245			$	370			$	485
Earned premiums				121			121			122			122			120			121			242			241				362				485
Loss and loss expenses ratio				90.1	%		71.0	%		34.9	%		42.8	%		88.3	%		69.0	%		80.5	%		78.6	%			66.6	%			58.6	%
Less catastrophe loss ratio				36.7			8.3			(5.1	)		0.6			23.5			7.4			22.5			15.4				10.4				6.6
Loss and loss expenses excluding catastrophe loss ratio				53.4	%		62.7	%		40.0	%		42.2	%		64.8	%		61.6	%		58.0	%		63.2	%			56.2	%			52.1	%
Commercial auto:
Written premiums			$	99		$	103		$	93		$	92		$	94		$	110		$	202		$	204			$	296			$	388
Earned premiums				96			95			98			99			98			99			191			197				296				394
Loss and loss expenses ratio				72.9	%		61.0	%		69.3	%		67.9	%		62.5	%		59.7	%		67.0	%		61.1	%			63.4	%			64.9	%
Less catastrophe loss ratio				4.2			(1.0	)		0.4			(0.8	)		3.3			(0.1	)		1.6			1.6				0.8				0.7
Loss and loss expenses excluding catastrophe loss ratio				68.7	%		62.0	%		68.9	%		68.7	%		59.2	%		59.8	%		65.4	%		59.5	%			62.6	%			64.2	%
Workers' compensation:
Written premiums			$	72		$	95		$	71		$	69		$	79		$	104		$	167		$	183			$	252			$	323
Earned premiums				79			74			74			82			88			83			153			171				253				326
Loss and loss expenses ratio				89.9	%		91.4	%		137.1	%		110.2	%		130.2	%		117.5	%		90.6	%		124.0	%			119.5	%			123.5	%
Less catastrophe loss ratio				-			-			-			-			-			-			-			-				-				-
Loss and loss expenses excluding catastrophe loss ratio				89.9	%		91.4	%		137.1	%		110.2	%		130.2	%		117.5	%		90.6	%		124.0	%			119.5	%			123.5	%
Specialty package:
Written premiums			$	36		$	39		$	37		$	38		$	35		$	38		$	75		$	73			$	110			$	148
Earned premiums				37			37			37			37			37			35			74			72				110				147
Loss and loss expenses ratio				85.6	%		89.0	%		40.5	%		33.5	%		114.3	%		96.0	%		87.3	%		105.4	%			81.0	%			70.6	%
Less catastrophe loss ratio				20.2			1.1			(10.2	)		(18.2	)		68.8			13.7			10.8			41.9				21.5				13.4
Loss and loss expenses excluding catastrophe loss ratio				65.4	%		87.9	%		50.7	%		51.7	%		45.5	%		82.3	%		76.5	%		63.5	%			59.5	%			57.2	%
Surety and executive risk:
Written premiums			$	24		$	23		$	23		$	28		$	25		$	25		$	47		$	50			$	78			$	101
Earned premiums				25			24			27			27			25			25			49			50				77				104
Loss and loss expenses ratio				36.2	%		51.1	%		95.7	%		85.6	%		67.0	%		30.3	%		43.6	%		48.8	%			61.7	%			70.5	%
Less catastrophe loss ratio				-			-			-			-			-			-			-			-				-				-
Loss and loss expenses excluding catastrophe loss ratio				36.2	%		51.1	%		95.7	%		85.6	%		67.0	%		30.3	%		43.6	%		48.8	%			61.7	%			70.5	%
Machinery and equipment:
Written premiums			$	9		$	8		$	8		$	9		$	7		$	8		$	17		$	15			$	24			$	32
Earned premiums				8			8			8			8			8			7			16			15				23				31
Loss and loss expense ratio				51.9	%		6.1	%		(47.6	) %		38.4	%		39.7	%		59.3	%		29.3	%		49.3	%			45.6	%			21.6	%
Less catastrophe loss ratio				1.8			(1.0	)		(3.5	)		(0.1	)		1.2			4.5			0.4			2.8				1.8				0.5
Loss and loss expense excluding catastrophe loss ratio				50.1	%		7.1	%		(44.1	) %		38.5	%		38.5	%		54.8	%		28.9	%		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

2010 Second-Quarter Supplement

13

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			$	97		$	73		$	77		$	90		$	89		$	68		$	170		$	157			$	246			$	324
Earned premiums				83			81			80			80			80			79			164			159				239				319
Loss and loss expenses ratio				73.6	%		58.2	%		71.8	%		64.9	%		75.7	%		63.6	%		66.0	%		69.7	%			68.1	%			69.0	%
Less catastrophe loss ratio				4.0			(0.1	)		(0.8	)		0.6			3.1			0.3			2.0			1.7				1.4				0.8
Loss and loss expenses excluding catastrophe loss ratio				69.6	%		58.3	%		72.6	%		64.3	%		72.6	%		63.3	%		64.0	%		68.0	%			66.7	%			68.2	%
Homeowner:
Written premiums			$	81		$	60		$	68		$	75		$	76		$	56		$	141		$	132			$	208			$	275
Earned premiums				72			70			69			68			70			70			142			140				207				276
Loss and loss expenses ratio				123.8	%		76.0	%		53.0	%		96.4	%		147.8	%		132.9	%		100.2	%		140.3	%			126.0	%			107.8	%
Less catastrophe loss ratio				52.8			6.9			(2.6	)		18.0			77.6			51.5			30.1			64.5				49.4				36.4
Loss and loss expenses excluding catastrophe loss ratio				71.0	%		69.1	%		55.6	%		78.4	%		70.2	%		81.4	%		70.1	%		75.8	%			76.6	%			71.4	%
Other personal:
Written premiums			$	26		$	22		$	22		$	25		$	25		$	21		$	48		$	45			$	70			$	92
Earned premiums				24			23			23			22			22			22			47			44				67				90
Loss and loss expenses ratio				53.0	%		51.5	%		33.8	%		33.8	%		42.6	%		37.8	%		52.3	%		40.2	%			38.0	%			36.9	%
Less catastrophe loss ratio				5.3			2.8			0.5			3.4			18.7			11.0			4.1			14.8				11.0				8.3
Loss and loss expenses excluding catastrophe loss ratio				47.7	%		48.7	%		33.3	%		30.4	%		23.9	%		26.8	%		48.2	%		25.4	%			27.0	%			28.6	%

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

2010 Second-Quarter Supplement

14

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 June 30, 2010
Commercial casualty	$	152	$	51	$	203	$	(26	)	$	(19	)	$	(19	)	$	(64	)	$	126		$	(19	)	$	32		$	139
Commercial property		125		22		147		38			6			3			47			163			6			25			194
Commercial auto		102		17		119		6			3			-			9			108			3			17			128
Workers' compensation		115		20		135		3			4			1			8			118			4			21			143
Specialty packages		41		9		50		15			(1	)		1			15			56			(1	)		10			65
Surety and executive risk		31		6		37		(20	)		2			(1	)		(19	)		11			2			5			18
Machinery and equipment		3		1		4		1			-			-			1			4			-			1			5
Total commercial lines		569		126		695		17			(5	)		(15	)		(3	)		586			(5	)		111			692
Personal auto		97		14		111		(5	)		2			-			(3	)		92			2			14			108
Homeowners		99		16		115		17			6			2			25			116			6			18			140
Other personal		22		3		25		(3	)		1			-			(2	)		19			1			3			23
Total personal lines		218		33		252		9			9			2			20			227			9			35			271
Total property casualty group	$	787	$	159	$	947	$	26		$	4		$	(13	)	$	17		$	813		$	4		$	146		$	963
Ceded loss and loss expense incurred at June 30, 2010
Commercial casualty	$	61	$	1	$	62	$	(40	)	$	(34	)	$	(27	)	$	(101	)	$	21		$	(34	)	$	(26	)	$	(39	)
Commercial property		4		3		7		(5	)		(3	)		-			(8	)		(1	)		(3	)		3			(1	)
Commercial auto		-		-		-		-			-			-			-			-			-			-			-
Workers' compensation		5		-		5		(1	)		-			-			(1	)		4			-			-			4
Specialty packages		-		1		1		-			(1	)		-			(1	)		-			(1	)		1			-
Surety and executive risk		2		1		3		(6	)		-			-			(6	)		(4	)		-			1			(3	)
Machinery and equipment		-		-		-		-			-			-			-			-			-			-			-
Total commercial lines		72		6		78		(52	)		(38	)		(27	)		(117	)		20			(38	)		(21	)		(39	)
Personal auto		-		-		-		-			-			-			-			-			-			-			-
Homeowners		1		3		4		(1	)		(5	)		-			(6	)		-			(5	)		3			(2	)
Other personal		-		-		-		-			(2	)		-			(2	)		-			(2	)		-			(2	)
Total personal lines		1		3		4		(1	)		(7	)		-			(8	)		-			(7	)		3			(4	)
Total property casualty group	$	73	$	9	$	82	$	(53	)	$	(45	)	$	(27	)	$	(125	)	$	20		$	(45	)	$	(18	)	$	(43	)
Net loss and loss expense incurred at June 30, 2010
Commercial casualty	$	91	$	50	$	141	$	14		$	15		$	8		$	37		$	105		$	15		$	58		$	178
Commercial property		121		19		140		43			9			3			55			164			9			22			195
Commercial auto		102		17		119		6			3			-			9			108			3			17			128
Workers' compensation		110		20		130		4			4			1			9			114			4			21			139
Specialty packages		41		8		49		15			-			1			16			56			-			9			65
Surety and executive risk		29		5		34		(14	)		2			(1	)		(13	)		15			2			4			21
Machinery and equipment		3		1		4		1			-			-			1			4			-			1			5
Total commercial lines		497		120		617		69			33			12			114			566			33			132			731
Personal auto		97		14		111		(5	)		2			-			(3	)		92			2			14			108
Homeowners		98		13		111		18			11			2			31			116			11			15			142
Other personal		22		3		25		(3	)		3			-			-			19			3			3			25
Total personal lines		217		30		247		10			16			2			28			227			16			32			275
Total property casualty group	$	714	$	150	$	864	$	79		$	49		$	14		$	142		$	793		$	49		$	164		$	1,006

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

2010 Second-Quarter Supplement

15

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			$	685		$	682		$	635		$	669		$	666		$	695		$	1,367		$	1,361			$	2,030			$	2,665
Agency new business written premiums				106			92			94			107			107			97			198			204				311				405
Other written premiums				(42	)		(18	)		(49	)		(46	)		(50	)		(14	)		(60	)		(64	)			(110	)			(159	)
Reported written premiums – statutory*			$	749		$	756		$	680		$	730		$	723		$	778		$	1,505		$	1,501			$	2,231			$	2,911
Unearned premium change				(21	)		(48	)		33			3			10			(46	)		(69	)		(36	)			(33	)			-
Earned premiums			$	728		$	708		$	713		$	733		$	733		$	732		$	1,436		$	1,465			$	2,198			$	2,911
Year over year change %
Agency renewal written premiums				3	%		(2	) %		(5	) %		(3	) %		(10	) %		(5	) %		0	%		(8	) %			(6	) %			(6	) %
Agency new business written premiums				(1	)		(5	)		(6	)		15			7			28			(3	)		17				16				10
Other written premiums				16			(29	)		4			13			(4	)		58			6			21				19				15
Reported written premiums – statutory*				4			(3	)		(5	)		0			(8	)		0			0			(4	)			(3	)			(3	)
Paid losses and loss expenses
Losses paid			$	382		$	334		$	381		$	390		$	412		$	401		$	716		$	813			$	1,203			$	1,584
Loss expenses paid				72			80			96			83			84			78			151			162				245				340
Loss and loss expenses paid			$	454		$	414		$	477		$	473		$	496		$	479		$	867		$	975			$	1,448			$	1,924
Statutory combined ratio
Loss ratio				65.1	%		54.3	%		49.9	%		50.2	%		71.6	%		62.5	%		59.8	%		67.0	%			61.4	%			58.6	%
Allocated loss expense ratio				5.7			6.0			7.4			6.1			6.7			4.9			5.8			5.8				5.9				6.3
Unallocated loss expense ratio				5.2			6.7			7.7			6.4			6.3			6.8			6.0			6.6				6.5				6.8
Net underwriting expense ratio				31.3			34.1			34.1			34.2			32.0			30.9			32.7			31.4				32.4				32.7
Statutory combined ratio				107.3	%		101.1	%		99.1	%		96.9	%		116.6	%		105.1	%		104.3	%		110.8	%			106.2	%			104.4	%
Contribution from catastrophe losses				13.6			2.1			(1.7	)		0.9			16.1			7.2			8.0			11.6				8.1				5.7
Statutory combined ratio excluding catastrophe losses				93.7	%		99.0	%		100.8	%		96.0	%		100.5	%		97.9	%		96.3	%		99.2	%			98.1	%			98.7	%
Commission expense ratio				17.9	%		18.4	%		20.4	%		20.1	%		18.2	%		17.7	%		18.1	%		17.9	%			18.7	%			19.0	%
Other expense ratio				13.4			15.7			13.7			14.1			13.8			13.2			14.6			13.5				13.7				13.7
Statutory expense ratio				31.3	%		34.1	%		34.1	%		34.2	%		32.0	%		30.9	%		32.7	%		31.4	%			32.4	%			32.7	%
GAAP combined ratio
GAAP combined ratio				107.6	%		102.6	%		98.6	%		95.1	%		116.6	%		107.5	%		105.2	%		112.1	%			106.4	%			104.5	%
Contribution from catastrophe losses				13.6			2.1			(1.7	)		0.9			16.1			7.2			8.0			11.6				8.1				5.7
GAAP combined ratio excluding catastrophe losses				94.0	%		100.5	%		100.3	%		94.2	%		100.5	%		100.3	%		97.2	%		100.5	%			98.3	%			98.8	%

*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.

2010 Second-Quarter Supplement

16

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			$	492		$	533		$	478		$	489		$	488		$	557		$	1,025		$	1,045			$	1,535			$	2,013
Agency new business written premiums				73			66			67			76			79			76			139			155				231				298
Other written premiums				(33	)		(11	)		(42	)		(37	)		(43	)		(7	)		(44	)		(51	)			(88	)			(130	)
Reported written premiums – statutory*			$	532		$	588		$	503		$	528		$	524		$	626		$	1,120		$	1,149			$	1,678			$	2,181
Unearned premium change				6			(65	)		29			27			32			(69	)		(59	)		(37	)			(11	)			18
Earned premiums			$	538		$	523		$	532		$	555		$	556		$	557		$	1,061		$	1,112			$	1,667			$	2,199
Year over year change %
Agency renewal written premiums				1	%		(4	) %		(7	) %		(3	) %		(12	) %		(5	) %		(2	) %		(8	) %			(7	) %			(7	) %
Agency new business written premiums				(8	)		(13	)		(19	)		0			(9	)		15			(10	)		1				1				(4	)
Other written premiums				23			(57	)		7			10			(5	)		76			14			28				21				17
Reported written premiums – statutory*				2			(6	)		(9	)		(2	)		(12	)		0			(3	)		(6	)			(5	)			(6	)
Paid losses and loss expenses
Losses paid			$	266		$	230		$	267		$	267		$	275		$	271		$	497		$	546			$	813			$	1,080
Loss expenses paid				58			63			76			66			67			60			120			126				192				268
Loss and loss expenses paid			$	324		$	293		$	343		$	333		$	342		$	331		$	617		$	672			$	1,005			$	1,348
Statutory combined ratio
Loss ratio				59.0	%		53.8	%		50.2	%		46.2	%		66.0	%		57.6	%		56.4	%		61.8	%			56.7	%			55.1	%
Allocated loss expense ratio				6.5			7.1			8.7			7.1			7.8			5.8			6.8			6.8				6.9				7.3
Unallocated loss expense ratio				4.8			6.6			7.9			6.0			5.7			6.4			5.7			6.0				6.0				6.5
Net underwriting expense ratio				31.7			31.9			35.1			35.6			32.5			29.2			31.8			30.8				32.2				32.9
Statutory combined ratio				102.0	%		99.3	%		102.0	%		94.9	%		112.0	%		99.0	%		100.7	%		105.4	%			101.8	%			101.8	%
Contribution from catastrophe losses				10.4			1.8			(1.8	)		(1.2	)		10.2			2.5			6.2			6.4				3.8				2.5
Statutory combined ratio excluding catastrophe losses				91.6	%		97.5	%		103.8	%		96.1	%		101.8	%		96.5	%		94.5	%		99.0	%			98.0	%			99.3	%
Commission expense ratio				17.6	%		17.2	%		20.0	%		20.3	%		18.1	%		16.4	%		17.4	%		17.2	%			18.2	%			18.6	%
Other expense ratio				14.1			14.7			15.1			15.3			14.4			12.8			14.4			13.5				14.0				14.3
Statutory expense ratio				31.7	%		31.9	%		35.1	%		35.6	%		32.5	%		29.2	%		31.8	%		30.7	%			32.2	%			32.9	%
GAAP combined ratio
GAAP combined ratio				101.7	%		102.1	%		100.8	%		92.4	%		110.9	%		102.2	%		101.9	%		106.6	%			101.9	%			101.6	%
Contribution from catastrophe losses				10.4			1.8			(1.8	)		(1.2	)		10.2			2.5			6.2			6.4				3.8				2.5
GAAP combined ratio excluding catastrophe losses				91.3	%		100.3	%		102.6	%		93.6	%		100.7	%		99.7	%		95.7	%		100.2	%			98.1	%			99.1	%

*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.

*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 Second-Quarter Supplement

17

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			$	187		$	143		$	153		$	177		$	176		$	137		$	330		$	313			$	490			$	642
Agency new business written premiums				24			18			20			21			19			14			42			34				55				75
Other written premiums				(7	)		(6	)		(6	)		(8	)		(5	)		(6	)		(13	)		(13	)			(21	)			(26	)
Reported written premiums – statutory*			$	204		$	155		$	167		$	190		$	190		$	145		$	359		$	334			$	524			$	691
Unearned premium change				(25	)		19			5			(20	)		(18	)		26			(6	)		9				(11	)			(6	)
Earned premiums			$	179		$	174		$	172		$	170		$	172		$	171		$	353		$	343			$	513			$	685
Year over year change %
Agency renewal written premiums				6	%		4	%		(2	) %		(4	) %		(5	) %		(6	) %		5	%		(6	) %			(5	) %			(4	) %
Agency new business written premiums				26			29			82			91			90			75			24			79				83				79
Other written premiums				(40	)		0			25			33			0			(50	)		0			(30	)			5				10
Reported written premiums – statutory*				7			7			5			3			(1	)		(3	)		7			(2	)			0				1
Paid losses and loss expenses
Losses paid			$	114		$	103		$	112		$	121		$	137		$	130		$	217		$	267			$	389			$	501
Loss expenses paid				14			17			19			18			18			18			30			35				52				71
Loss and loss expenses paid			$	128		$	120		$	131		$	139		$	155		$	148		$	247		$	302			$	441			$	572
Statutory combined ratio
Loss ratio				82.4	%		55.3	%		49.4	%		63.1	%		90.1	%		78.3	%		69.0	%		84.2	%			77.1	%			70.2	%
Allocated loss expense ratio				2.0			1.9			2.7			2.4			2.4			1.9			2.0			2.2				2.2				2.4
Unallocated loss expense ratio				6.7			7.2			7.1			7.8			8.2			8.3			6.9			8.3				8.1				7.8
Net underwriting expense ratio				30.1			42.1			30.2			29.5			29.8			35.4			35.3			32.1				31.2				31.0
Statutory combined ratio				121.2	%		106.5	%		89.4	%		102.8	%		130.5	%		123.9	%		113.2	%		126.8	%			118.7	%			111.4	%
Contribution from catastrophe losses				23.8			3.0			(1.4	)		7.9			35.4			22.6			13.6			29.0				22.0				16.1
Statutory combined ratio excluding catastrophe losses				97.4	%		103.5	%		90.8	%		94.9	%		95.1	%		101.3	%		99.6	%		97.8	%			96.7	%			95.3	%
Commission expense ratio				18.1	%		22.4	%		20.9	%		19.1	%		18.0	%		22.5	%		20.0	%		20.0	%			19.6	%			20.0	%
Other expense ratio				12.0			19.7			9.3			10.4			11.7			12.9			15.3			12.2				11.6				11.0
Statutory expense ratio				30.1	%		42.1	%		30.2	%		29.5	%		29.7	%		35.4	%		35.3	%		32.2	%			31.2	%			31.0	%
GAAP combined ratio
GAAP combined ratio				123.4	%		102.5	%		90.9	%		102.3	%		133.2	%		120.7	%		113.1	%		126.9	%			118.7	%			111.8	%
Contribution from catastrophe losses				23.8			3.0			(1.4	)		7.9			35.4			22.6			13.6			29.0				22.0				16.1
GAAP combined ratio excluding catastrophe losses				99.6	%		99.5	%		92.3	%		94.4	%		97.8	%		98.1	%		99.5	%		97.9	%			96.7	%			95.7	%

*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.

2010 Second-Quarter Supplement

18

The Cincinnati Life Insurance Company

Statutory Statements of Income

	For the Three Months Ended June 30,												For the Six Months Ended June 30,
(Dollars in millions)	2010			2009			Change			% Change			2010			2009			Change			% Change
Net premiums written	$	93		$	71		$	22			31		$	198		$	119		$	79			66
Net investment income		34			31			3			10			67			61			6			10
Amortization of interest maintenance reserve		(1	)		(2	)		1			50			(1	)		(3	)		2			67
Commissions and expense allowances on reinsurance ceded		2			2			-		nm				3			3			-		nm
Income from fees associated with Separate Accounts		1			-			1		nm				1			-			1		nm
Total revenues	$	129		$	102		$	27			26		$	268		$	180		$	88			49
Death benefits and matured endowments	$	13		$	12		$	1			8		$	26		$	29		$	(3	)		(10	)
Annuity benefits		8			7			1			14			18			17			1			6
Disability benefits and benefits under accident and health contracts		1			-			1		nm				1			1			-		nm
Surrender benefits and group conversions		5			6			(1	)		(17	)		11			11			-		nm
Interest and adjustments on deposit-type contract funds		3			3			-		nm				5			5			-		nm
Increase in aggregate reserves for life and accident and health contracts		78			58			20			34			162			85			77			91
Payments on supplementary contracts with life contingencies		-			-			-		nm				-			-			-		nm
Total benefit expenses	$	108		$	86		$	22			26		$	223		$	148		$	75			51
Commissions	$	12		$	10		$	2			20		$	23		$	18		$	5			28
General insurance expenses and taxes		9			9			-		nm				19			18			1			6
Increase in loading on deferred and uncollected premiums		(3	)		(3	)		-		nm				(4	)		(3	)		(1	)		(33	)
Net transfers from Separate Accounts		-			-			-		nm				-			(2	)		2		nm
Other deductions		-			-			-		nm				-			-			-		nm
Total operating expenses	$	18		$	16		$	2			13		$	38		$	31		$	7			23
Federal and foreign income tax benefit		1			(1	)		2			200			(3	)		(4	)		1			25
Net gain from operations before realized capital gains or (losses)	$	2		$	1		$	1			100		$	10		$	5		$	5			100
Net realized gains or (losses) net of capital gains tax		-			-			-		nm				1			(6	)		7		nm
Net income (loss) (statutory)	$	2		$	1		$	1			100		$	11		$	(1	)	$	12		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 Second-Quarter Supplement

19