Exhibit 11
CINCINNATI FINANCIAL CORPORATION
STATEMENT RE-COMPUTATION OF PER SHARE EARNINGS
(in millions except per share data)
Six Months Ended Three Months Ended
June 30, June 30,
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2002 2001 2002 2001
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Basic earnings per share:
Net income ................................... $ 110 $ 122 $ 35 $ 49
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Average shares outstanding ................... 162 162 162 161
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Net income per common share .................. $ .68 $ .75 $ .22 $ .30
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Diluted earnings per share:
Net income ................................... $ 110 $ 122 $ 35 $ 49
Interest on convertible senior debenture, net
of tax ....................................... -- -- -- --
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Net income for per share calculation-(diluted) $ 110 $ 122 $ 35 $ 49
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Average shares outstanding ................... 162 162 162 161
Effect of dilutive securities:
5.5% convertible senior debentures ........ -- 1 -- 1
Stock options ............................. 2 1 2 2
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Average share outstanding -- (diluted) ....... 164 164 164 164
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Net income per common share -- (diluted) ..... $ .67 $ .74 $ .21 $ .30
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ANTI-DILUTIVE SECURITIES
Options to purchase 590 thousand shares of the Company's common stock with
exercise prices ranging from $42.87 to $45.37 per share were outstanding at June
30, 2002, and 953 thousand shares with exercise prices ranging from $38.39 to
$45.37 per share were outstanding at June 30, 2001. The shares were not included
in the computation of diluted earnings per share for either the six-month or
three-month periods ended June 30, 2002 and 2001, since inclusion of these
options would have anti-dilutive effects, as the options exercise prices
exceeded the respective average market prices of the Company's shares.
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