1 EXHIBIT 11 CINCINNATI FINANCIAL CORPORATION STATEMENT RE COMPUTATION OF PER SHARE EARNINGS (000's omitted except per share data) Six Months Ended Three Months Ended June 30, June 30, ---------------- ------------------ 1998 1997 1998 1997 ---- ---- ---- ---- Basic earnings per share: Net income $ 143,028 $ 149,877 $ 58,850 $ 75,830 Average shares outstanding 166,768 166,081 166,933 165,730 Net income per common share $ .86 $ .90 $ .35 $ .46 Diluted earnings per share: Net income $ 143,028 $ 49,877 $ 58,850 $ 75,830 Interest on convertible debentures--net of tax 981 1,421 484 708 --------- --------- -------- -------- Net income for per share calculation (diluted) $ 144,009 $ 151,298 $ 59,334 $ 76,538 ========= ========= ======== ======== Average shares outstanding 166,768 166,081 166,933 165,730 Effective of dilutive securities: 5.5% convertible senior debentures 3,553 5,319 3,553 5,319 Stock options 1,951 1,148 1,898 1,314 --------- --------- -------- -------- Total dilutive shares 172,272 172,548 172,384 172,363 ========= ========= ======== ======== Net income per common share--diluted $ .84 $ .88 $ .35 $ .45