CINCINNATI, Feb. 3, 2016 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today reported:


    --  Fourth-quarter 2015 net income of $156 million, or 94 cents per share,
        compared with $167 million, or $1.02 per share, in the fourth quarter of
        2014.
    --  Full-year 2015 net income of $634 million, or $3.83 per share, up 21
        percent from $525 million, or $3.18, in 2014. Operating income of $589
        million, or $3.56 per share, up 34 percent from $440 million, or $2.66
        per share.
    --  $11 million decrease in fourth-quarter 2015 net income reflected the
        after-tax net effect of two primary items:   $45 million reduction in
        net realized investment gains that offset $28 million of improvement in
        the contribution from property casualty underwriting. The underwriting
        improvement effect was partially offset by a $14 million unfavorable
        impact from natural catastrophe losses.
    --  $39.20 book value per share at December 31, 2015, down 94 cents or 2
        percent since December 31, 2014.
    --  3.4 percent value creation ratio for full-year 2015, compared with 12.6
        percent for 2014.


    Financial Highlights


    (Dollars in
     millions
     except per
     share data)              Three months ended December 31,                 Twelve months ended December 31,
    ------------

                         2015                   2014                  % Change                                2015              2014            % Change
                         ----                   ----                --------                              ----              ----          --------

    Revenue Data

       Earned premiums                       $1,148                                $1,086                             6              $4,480                        $4,243       6

       Investment
        income, net of
        expenses                     150                        140                                  7               572                 549                    4

       Total revenues              1,263                      1,262                                  0             5,142               4,945                    4

    Income
     Statement Data

       Net income                              $156                                  $167                           (7)               $634                          $525      21

       Realized
        investment
        gains and
        losses, net                 (26)                        19                                  nm                        45                  85              (47)
                                     ---                        ---

       Operating
        income*                                $182                                  $148                            23                $589                          $440      34
                                               ====                                  ====                                             ====                          ====

    Per Share Data
     (diluted)

       Net income                             $0.94                                 $1.02                           (8)              $3.83                         $3.18      20

       Realized
        investment
        gains and
        losses, net               (0.16)                      0.13                                  nm                      0.27                0.52              (48)

       Operating
        income*                               $1.10                                 $0.89                            24               $3.56                         $2.66      34
                                              =====                                 =====                                            =====                         =====


       Book value                                                                                                      $39.20                          $40.14             (2)

       Cash dividend
        declared                              $0.92                                 $0.44                           109               $2.30                         $1.76      31

       Diluted
        weighted
        average shares
        outstanding                165.7                      165.3                                  0             165.6               165.1                    0
       ---------------             -----                      -----                                ---             -----               -----                  ---


    *                The Definitions of Non-GAAP
                     Information and Reconciliation to
                     Comparable GAAP Measures defines
                     and reconciles measures presented
                     in this release that are not
                     based on U. S. Generally Accepted
                     Accounting Principles.

    **               Forward-looking statements and
                     related assumptions are subject
                     to the risks outlined in the
                     company's safe harbor statement.

Insurance Operations Fourth-Quarter Highlights


    --  87.0 percent fourth-quarter 2015 property casualty combined ratio,
        improved from 90.4 percent for fourth-quarter 2014. Full-year 2015
        property casualty combined ratio at 91.1%, with net written premiums up
        5 percent.
    --  7 percent increase in fourth-quarter net written premiums, including
        higher pricing and growth initiatives.
    --  $140 million fourth-quarter 2015 property casualty new business written
        premiums. Agencies appointed since the beginning of 2014 contributed $12
        million or 9 percent of total fourth-quarter new business written
        premiums.
    --  6 cents per share contribution from life insurance operating income,
        matching a year ago.

Investment and Balance Sheet Highlights


    --  7 percent or $10 million rise in fourth-quarter 2015 pretax investment
        income, including 14 percent growth for stock portfolio dividends and 4
        percent growth for bond interest income.
    --  Less than 1 percent full-year increase in fair value of invested assets
        at December 31, 2015, including a 3 percent decrease for the stock
        portfolio and a 2 percent increase for the bond portfolio.
    --  $1.747 billion parent company cash and marketable securities at year-end
        2015, down 2 percent from a year ago.

Achieving Planned Results
Steven J. Johnston, president and chief executive officer, commented: "Operating income for the fourth quarter rose 23 percent over last year's result, bringing our full-year operating income to $589 million.

"Property casualty insurance underwriting was the key to our performance. Underwriting profits before taxes increased 43 percent for the quarter and 108 percent for the year. These strong overall results reflect the positive execution of our strategies to balance growth and profitability.

"The combined ratio of 87.0 percent for the fourth quarter improved 3.4 points over last year's healthy result. Our 2015 full-year results surpassed those of the last seven years with a combined ratio of 91.1 percent, benefiting from sound underwriting judgment, lower catastrophe losses and steady favorable prior accident year reserve development. At the same time, our recent premium growth represents a solid achievement, including net written premium growth of 5 percent for the year.

"Our long-term investment approach continued to boost operating results. Pretax investment income rose to $150 million for the quarter and $572 million for the year, up 7 percent and 4 percent, respectively."

Focusing on Profitable Growth
"We believe our full-year property casualty net written premium growth is again ahead of the industry average. Thanks to the success achieved by our associates and independent agency partners, we nearly reached our goal of $5 billion in direct written premiums by year-end 2015.

"Our growth initiatives are on track. New business for personal insurance rose 21 percent for the year, including an increase of $4 million from agencies' high net worth clients. Cincinnati Re(SM), our reinsurance assumed operation which we began to expand in 2015, profitably increased full-year property casualty net written premiums by 1 percent.

"We continue to refine pricing precision on all accounts. Our ability to price on a policy-by-policy basis will support our efforts to maintain appropriate pricing as we navigate a challenging market environment in 2016. The right price, bolstered by our hallmarks of strong agency relationships and overwhelming claims service, will help our agents attract and retain high-quality business."

Returning Capital to Shareholders
"Our property casualty statutory surplus, a healthy $4.4 billion at December 31, provides ample capacity to move forward with our growth plans. A strong balance sheet gives us the flexibility to invest in our business while still paying shareholder dividends as a consistent, long-term strategy. The board of directors' recent actions to pay a special cash dividend at the end of 2015 and to increase our indicated annual dividend for the 56(th) consecutive year demonstrates their confidence in our future."



                                                                                                             Insurance Operations Highlights

    Consolidated Property Casualty Insurance Results


    (Dollars in
     millions)                                             Three months ended December 31,                                        Twelve months ended December 31,

                                                      2015                    2014                      % Change                            2015                      2014                % Change
                                                      ----                    ----                      --------                            ----                      ----                --------

    Earned premiums                                         $1,095                                            $1,035                                        6                     $4,271                         $4,045      6

    Fee revenues                                         2                                   1                                  100                          8                          6                    33
                                                       ---                                 ---                                                            ---                        ---

       Total revenues                                1,097                               1,036                                    6                      4,279                      4,051                     6


    Loss and loss expenses                             616                                 622                                  (1)                     2,572                      2,627                   (2)

    Underwriting expenses                              338                                 314                                    8                      1,321                      1,238                     7

       Underwriting profit                                    $143                                              $100                                       43                       $386                           $186    108
                                                              ====                                              ====                                                               ====                           ====


    Ratios as a percent of
     earned premiums:                                                                              Pt. Change                                                                   Pt. Change
                                                                                                   ----------                                                                   ----------

         Loss and loss expenses                      56.3%                              60.1%                               (3.8)                     60.2%                     65.0%                (4.8)

         Underwriting expenses                        30.7                                30.3                                  0.4                       30.9                       30.6                   0.3
                                                      ----                                ----                                  ---                       ----                       ----                   ---

               Combined ratio                        87.0%                              90.4%                               (3.4)                     91.1%                     95.6%                (4.5)
                                                      ====                                ====                                 ====                       ====                       ====                  ====


                                                                                                    % Change                                                                     % Change

    Agency renewal written
     premiums                                                 $925                                              $906                                        2                     $3,925                         $3,794      3

    Agency new business
     written premiums                                  140                                 122                                   15                        532                        503                     6

    Cincinnati Re net written
     premiums                                           33                                   -                                  nm                                 33                              -                    nm

    Other written premiums                            (43)                               (41)                                 (5)                     (129)                     (154)                   16

       Net written premiums                                 $1,055                                              $987                                        7                     $4,361                         $4,143      5
                                                            ======                                              ====                                                             ======                         ======


    Ratios as a percent of
     earned premiums:                                                                          Pt. Change                                                                  Pt. Change

         Current accident year
          before catastrophe losses                  58.9%                              58.3%                                 0.6                      60.4%                     61.7%                (1.3)

         Current accident year
          catastrophe losses                           1.5                               (0.2)                                 1.7                        4.1                        5.7                 (1.6)

         Prior accident years
          before catastrophe losses                  (3.8)                                2.7                                (6.5)                     (3.9)                     (1.8)                (2.1)

         Prior accident years
          catastrophe losses                         (0.3)                              (0.7)                                 0.4                      (0.4)                     (0.6)                  0.2

               Loss and loss expense
                ratio                                56.3%                              60.1%                               (3.8)                     60.2%                     65.0%                (4.8)
                                                      ====                                ====                                 ====                       ====                       ====                  ====


    Current accident year
     combined ratio before

      catastrophe losses                             89.6%                              88.6%                                 1.0                      91.3%                     92.3%                (1.0)
                                                      ====                                ====                                  ===                       ====                       ====                  ====

    --  7 percent and 5 percent growth in fourth-quarter and full-year 2015
        property casualty net written premiums, including 3 percent and 1
        percent from Cincinnati Re. The increase in premiums also reflects other
        growth initiatives, modest average price increases and a higher level of
        insured exposures.
    --  15 percent and 6 percent increase in fourth-quarter and full-year 2015
        new business premiums written by agencies, compared with a year ago,
        including 1 percent for each period from agencies' high net worth
        clients. Full-year 2015 new business premiums, up $29 million in total,
        included a $27 million increase in standard market property casualty
        production from agencies appointed since the beginning of 2014 and a $5
        million increase for excess and surplus lines.
    --  1,526 agency relationships in 1,956 reporting locations marketing
        standard market property casualty insurance products at December 31,
        2015, compared with 1,466 agency relationships in 1,884 reporting
        locations at year-end 2014. The 114 new agency appointments made during
        2015 were slightly more than planned.
    --  3.4 percentage-point fourth-quarter 2015 combined ratio improvement,
        driven by 6.5 points more benefit from prior accident year reserve
        development before catastrophes that offset an increase of 2.1 points
        for higher losses from natural catastrophes.
    --  4.5 percentage-point improvement in full-year 2015 combined ratio,
        compared with 2014, including 1.4 points from lower natural catastrophe
        losses and 0.9 points from lower noncatastrophe weather-related losses.
    --  4.1 and 4.3 percentage-point fourth-quarter and full-year 2015 benefit
        from favorable prior accident year reserve development of $44 million
        and $184 million, compared with 2.0 points or $22 million of unfavorable
        fourth-quarter 2014 development and 2.4 points or $98 million of
        favorable development for full-year 2014. The unfavorable development
        reported for the fourth-quarter of 2014 was primarily due to higher
        estimates of IBNR losses and loss expenses for our commercial casualty
        line of business.
    --  1.3 percentage-point improvement, to 60.4 percent, for the full-year
        2015 ratio of current accident year losses and loss expenses before
        catastrophes, largely due to lower noncatastrophe weather-related losses
        and a 0.5 point decrease in the ratio for current accident year losses
        of $1 million or more per claim.
    --  0.3 percentage-point increase in the full-year 2015 underwriting expense
        ratio, as strategic investments for profitable growth offset higher
        earned premiums and expense management efforts.



    Commercial Lines Insurance Results


    (Dollars in
     millions)                         Three months ended December 31,                              Twelve months ended December 31,

                                            2015                     2014        % Change                                             2015  2014                      % Change
                                            ----                     ----        --------                                             ----  ----                      --------

    Earned premiums                                  $761                                      $730                                      4         $2,996                                  $2,856   5

    Fee revenues                               1                               1                               0                          4              4                              0
                                             ---                             ---                                                       ---            ---

       Total revenues                        762                             731                               4                      3,000          2,860                              5


    Loss and loss
     expenses                                419                             454                             (8)                     1,708          1,812                            (6)

    Underwriting
     expenses                                242                             228                               6                        947            902                              5
                                             ---                             ---                                                       ---            ---

       Underwriting
        profit                                       $101                                       $49                                    106           $345                                    $146 136
                                                     ====                                       ===                                                 ====                                    ====


    Ratios as a
     percent of
     earned premiums:                                                                    Pt. Change                                                        Pt. Change

         Loss and loss
          expenses                         55.1%                          62.3%                          (7.2)                     57.0%         63.5%                         (6.5)

         Underwriting
          expenses                          31.7                            31.3                             0.4                       31.6           31.6                            0.0

               Combined ratio              86.8%                          93.6%                          (6.8)                     88.6%         95.1%                         (6.5)
                                            ====                            ====                            ====                       ====           ====                           ====


                                                                                          % Change                                                          % Change
                                                                                          --------                                                          --------

    Agency renewal
     written premiums                                $649                                      $645                                      1         $2,756                                  $2,678   3

    Agency new
     business written
     premiums                                 97                              86                              13                        365            360                              1

    Other written
     premiums                               (34)                           (32)                            (6)                      (96)         (116)                            17

       Net written
        premiums                                     $712                                      $699                                      2         $3,025                                  $2,922   4
                                                     ====                                      ====                                               ======                                  ======


    Ratios as a
     percent of
     earned premiums:                                                                    Pt. Change                                                        Pt. Change

         Current accident
          year before
          catastrophe
          losses                           58.2%                          58.9%                          (0.7)                     58.6%         60.7%                         (2.1)

         Current accident
          year catastrophe
          losses                             1.4                           (0.1)                            1.5                        3.5            4.8                          (1.3)

         Prior accident
          years before
          catastrophe
          losses                           (4.1)                            4.4                           (8.5)                     (4.7)         (1.5)                         (3.2)

         Prior accident
          years
          catastrophe
          losses                           (0.4)                          (0.9)                            0.5                      (0.4)         (0.5)                           0.1

               Loss and loss
                expense ratio              55.1%                          62.3%                          (7.2)                     57.0%         63.5%                         (6.5)
                                            ====                            ====                            ====                       ====           ====                           ====


    Current accident
     year combined
     ratio before

      catastrophe
       losses                              89.9%                          90.2%                          (0.3)                     90.2%         92.3%                         (2.1)
                                            ====                            ====                            ====                       ====           ====                           ====

    --  2 percent and 4 percent growth in fourth-quarter and full-year 2015
        commercial lines net written premiums, reflecting growth initiatives, a
        higher level of insured exposures and price increases. Fourth-quarter
        and full-year 2015 commercial lines average renewal price increases at a
        percentage in the low-single-digit range.
    --  $5 million or 1 percent rise in full-year 2015 new business written by
        agencies, driven by production from agencies appointed since the
        beginning of 2014 that offset effects of a softening commercial
        insurance market.
    --  6.8 percentage-point improvement in fourth-quarter 2015 combined ratio,
        driven by 8.5 points more benefit from prior accident year reserve
        development before catastrophes that offset an increase of 2.0 points
        for higher losses from natural catastrophes.
    --  6.5 percentage-point improvement in the full-year 2015 combined ratio,
        including 1.2 points from lower natural catastrophe losses and 2.1
        points from lower incurred losses and loss expenses for our largest
        commercial line of business, commercial casualty.
    --  4.5 and 5.1 percentage-point fourth-quarter and full-year 2015 benefit
        from favorable prior accident year reserve development of $34 million
        and $154 million, compared with 3.5 points or $26 million of unfavorable
        fourth-quarter 2014 development and 2.0 points or $57 million of
        favorable development for full-year 2014.
    --  2.1 percentage-point improvement, to 58.6 percent, for the full-year
        2015 ratio of current accident year losses and loss expenses before
        catastrophes, largely due to a 1.5 point decrease in the ratio for
        current accident year losses of $1 million or more per claim.



    Personal Lines Insurance Results


    (Dollars in
     millions)                       Three months ended December 31,                        Twelve months ended December 31,

                                          2015                     2014             % Change                                  2015  2014                     % Change
                                          ----                     ----             --------                                  ----  ----                     --------

    Earned premiums                                $280                              $266                                        5        $1,097                               $1,041    5

    Fee revenues                             1                               0                         0                          3             2                          50
                                           ---                             ---                                                 ---           ---

       Total revenues                      281                             266                         6                      1,100         1,043                           5


    Loss and loss
     expenses                              184                             148                        24                        789           740                           7

    Underwriting
     expenses                               79                              75                         5                        323           293                          10
                                           ---                             ---                                                 ---           ---

       Underwriting
        (loss) profit                               $18                               $43                                     (58)        $(12)                                 $10   nm
                                                    ===                               ===                                                  ====                                  ===


    Ratios as a
     percent of
     earned premiums:                                                          Pt. Change                                                         Pt. Change

         Loss and loss
          expenses                       65.7%                          55.8%                      9.9                      71.9%        71.1%                        0.8

         Underwriting
          expenses                        28.3                            27.9                       0.4                       29.4          28.1                         1.3

               Combined ratio            94.0%                          83.7%                     10.3                     101.3%        99.2%                        2.1
                                          ====                            ====                      ====                      =====          ====                         ===


                                                                                % Change                                                           % Change

    Agency renewal
     written premiums                              $245                              $233                                        5        $1,041                               $1,005    4

    Agency new
     business written
     premiums                               27                              24                        13                        111            92                          21

    Other written
     premiums                              (6)                            (8)                       25                       (24)         (29)                         17

       Net written
        premiums                                   $266                              $249                                        7        $1,128                               $1,068    6
                                                   ====                              ====                                                ======                               ======


    Ratios as a
     percent of
     earned premiums:                                                          Pt. Change                                                         Pt. Change

         Current accident
          year before
          catastrophe
          losses                         62.4%                          56.1%                      6.3                      64.9%        63.4%                        1.5

         Current accident
          year catastrophe
          losses                           2.0                           (0.9)                      2.9                        6.5           8.8                       (2.3)

         Prior accident
          years before
          catastrophe
          losses                           1.5                             1.1                       0.4                        0.8         (0.1)                        0.9

         Prior accident
          years
          catastrophe
          losses                         (0.2)                          (0.5)                      0.3                      (0.3)        (1.0)                        0.7

               Loss and loss
                expense ratio            65.7%                          55.8%                      9.9                      71.9%        71.1%                        0.8
                                          ====                            ====                       ===                       ====          ====                         ===


    Current accident
     year combined
     ratio before

      catastrophe
       losses                            90.7%                          84.0%                      6.7                      94.3%        91.5%                        2.8
                                          ====                            ====                       ===                       ====          ====                         ===

    --  7 percent and 6 percent growth in fourth-quarter and full-year 2015
        personal lines net written premiums, including growth in new business
        and higher renewal written premiums that benefited from rate increases.
    --  3 percent increase in full-year 2015 earned premiums in aggregate from
        our five highest volume states where we offer personal lines policies
        and that represent approximately half of our personal lines premiums,
        while rising 8 percent for all other states in aggregate as we progress
        toward geographic diversification.
    --  13 percent and 21 percent increase in fourth-quarter and full-year 2015
        new business written premium, including increases of approximately $1
        million and $4 million, respectively, from agencies' high net worth
        clients.
    --  10.3 percentage-point rise in fourth-quarter 2015 combined ratio,
        including 3.2 points from higher natural catastrophe losses and 6.3
        points from higher current accident year losses and loss expenses before
        catastrophes, largely from our personal auto line of business.
    --  2.1 percentage-point rise in the full-year 2015 combined ratio,
        including increases in the underwriting expense ratio and in the ratio
        for losses of $1 million or more per claim that offset decreases in
        ratios of 1.6 points from lower natural catastrophe losses and 1.7
        points from lower noncatastrophe weather-related losses.
    --  1.3 and 0.5 percentage-point fourth-quarter and full-year 2015
        unfavorable prior accident year reserve development of $4 million and $5
        million, compared with 0.6 points or $1 million of unfavorable
        fourth-quarter 2014 development and 1.1 points or $12 million of
        favorable development for full-year 2014.
    --  1.5 percentage-point increase, to 64.9 percent, for the full-year 2015
        ratio of current accident year losses and loss expenses before
        catastrophes, including a 2.2 point increase in the ratio for current
        accident year losses of $1 million or more per claim that offset lower
        noncatastrophe weather-related losses.
    --  1.3 percentage-point increase in the full-year 2015 underwriting expense
        ratio, largely due to strategic investments such as staff additions to
        support expansion in high net worth markets.



    Excess and Surplus Lines Insurance Results


    (Dollars in
     millions)                                 Three months ended December 31,                          Twelve months ended December 31,

                                                     2015                    2014              % Change                                  2015      2014                      % Change
                                                     ----                    ----              --------                                  ----      ----                      --------

    Earned premiums                                           $44                                $39                                       13               $168                                  $148    14

    Fee revenues                                        -                              -                                  -                      1                        -                            nm
                                                      ---                            ---                                                       ---                      ---

       Total revenues                                  44                              39                        13                        169                148                             14


    Loss and loss
     expenses                                           8                              20                      (60)                        70                 75                            (7)

    Underwriting
     expenses                                          14                              11                        27                         48                 43                             12
                                                      ---                             ---                                                 ---                ---

       Underwriting
        profit                                                $22                                 $8                                      175                $51                                   $30    70
                                                              ===                                ===                                                        ===                                   ===


    Ratios as a
     percent of
     earned premiums:                                                                     Pt. Change                                                              Pt. Change
                                                                                          ----------                                                              ----------

         Loss and loss
          expenses                                  18.9%                          49.0%                   (30.1)                     41.9%             50.5%                         (8.6)

         Underwriting
          expenses                                   29.2                            28.8                       0.4                       28.1               28.9                          (0.8)
                                                     ----                            ----                       ---                       ----               ----                           ----

               Combined ratio                       48.1%                          77.8%                   (29.7)                     70.0%             79.4%                         (9.4)
                                                     ====                            ====                     =====                       ====               ====                           ====


                                                                                           % Change                                                                % Change

    Agency renewal
     written premiums                                         $31                                $28                                       11               $128                                  $111    15

    Agency new
     business written
     premiums                                          16                              12                        33                         56                 51                             10

    Other written
     premiums                                         (3)                            (1)                    (200)                       (9)               (9)                             0

       Net written
        premiums                                              $44                                $39                                       13               $175                                  $153    14
                                                              ===                                ===                                                       ====                                  ====


    Ratios as a
     percent of
     earned premiums:                                                                     Pt. Change                                                              Pt. Change
                                                                                          ----------                                                              ----------

         Current accident
          year before
          catastrophe
          losses                                    51.3%                          62.1%                   (10.8)                     62.1%             68.1%                         (6.0)

         Current accident
          year catastrophe
          losses                                      0.2                             2.9                     (2.7)                       0.5                1.8                          (1.3)

         Prior accident
          years before
          catastrophe
          losses                                   (32.5)                         (16.1)                   (16.4)                    (20.6)            (19.6)                          (1.0)

         Prior accident
          years
          catastrophe
          losses                                    (0.1)                            0.1                     (0.2)                     (0.1)               0.2                          (0.3)

               Loss and loss
                expense ratio                       18.9%                          49.0%                   (30.1)                     41.9%             50.5%                         (8.6)
                                                     ====                            ====                     =====                       ====               ====                           ====


    Current accident
     year combined
     ratio before

      catastrophe
       losses                                       80.5%                          90.9%                   (10.4)                     90.2%             97.0%                         (6.8)
                                                     ====                            ====                     =====                       ====               ====                           ====

    --  13 percent and 14 percent growth in fourth-quarter and full-year 2015
        excess and surplus lines net written premiums, including average renewal
        price increases at a percentage near the high end of a low-single-digit
        range - down slightly from a mid-single-digit range in the third quarter
        of 2015.
    --  10 percent increase in full-year 2015 new business written premiums,
        slowing from 21 percent in full-year 2014 as a result of careful
        underwriting in a highly competitive market.
    --  29.7 percentage-point improvement in fourth-quarter 2015 combined ratio,
        largely due to 16.4 points more benefit from prior accident year reserve
        development before catastrophes.
    --  9.4 percentage-point combined ratio improvement for full-year 2015,
        primarily due to improved experience in the ratio for current accident
        year losses and loss expenses before catastrophe losses.



    Life Insurance Results


    (Dollars in
     millions)                  Three months ended December 31,                  Twelve months ended December 31,
    -----------

                           2015                 2014                % Change                       2015                2014       % Change
                           ----                 ----                --------                       ----                ----       --------

    Term life
     insurance                                  $33                          $32                                    3       $136                 $131  4

    Universal life
     insurance                           11                      10                      10                         39         35             11

    Other life
     insurance,
     annuity, and
     disability income                    9                       9                       0                         34         32              6

      products


    Earned premiums                      53                      51                       4                        209        198              6

    Investment income,
     net of expenses                     38                      36                       6                        150        144              4

    Other income                          1                       2                    (50)                         5          6           (17)
                                        ---                     ---                                               ---        ---

    Total revenues,
     excluding
     realized
     investment gains                    92                      89                       3                        364        348              5

      and losses


    Contract holders'
     benefits incurred                   61                      53                      15                        236        229              3

    Underwriting
     expenses incurred                   16                      21                    (24)                        66         63              5
                                        ---                     ---                                               ---        ---

    Total benefits and
     expenses                            77                      74                       4                        302        292              3
                                        ---                     ---                                               ---        ---

    Net income before
     income tax and
     realized                            15                      15                       0                         62         56             11

      investment gains,
       net

    Income tax                            5                       5                       0                         22         20             10

    Net income before
     realized
     investment gains,
     net                                        $10                          $10                                    0        $40                  $36 11
                                                ===                          ===                                            ===                  ===

    --  $11 million or 6 percent increase in full-year 2015 earned premiums,
        including a 4 percent increase for term life insurance, our largest life
        insurance product line.
    --  $4 million increase in full-year 2015 profit, primarily due to more
        favorable mortality experience.
    --  $32 million or 4 percent full-year 2015 decrease to $872 million in GAAP
        shareholders' equity for The Cincinnati Life Insurance Company, largely
        reflecting a decrease in fair value of the fixed-maturity portfolio due
        to the effects of rising interest rates and widening credit spreads.



                                                                                         Investment and Balance Sheet Highlights

    Investment Results


    (Dollars in millions)                      Three months ended December 31,                                          Twelve months ended December 31,
    --------------------

                                    2015           2014                           % Change                            2015                       2014         % Change
                                    ----           ----                           --------                            ----                       ----         --------

    Investment income, net of
     expenses                                     $150                                                $140                                        7                   $572                        $549    4

    Investment interest
     credited to contract
     holders'                             (22)                               (21)                                   (5)                      (86)                  (83)              (4)

    Realized investment gains
     and losses, net                      (40)                                 32                                  (225)                        70                    133              (47)

    Investment profit                              $88                                                $151                                     (42)                  $556                        $599  (7)
                                                   ===                                                ====                                                           ====                        ====


    Investment income:

       Interest                                   $109                                                $105                                        4                   $428                        $417    3

       Dividends                            42                                  37                                     14                        150                    138                 9

       Other                                 1                                   -                                    nm                                   3                      2              50

       Less investment expenses              2                                   2                                      0                          9                      8                13
                                           ---                                 ---                                                              ---                    ---

          Investment income, pretax        150                                 140                                      7                        572                    549                 4

          Less income taxes                 35                                  33                                      6                        135                    130                 4
                                           ---                                 ---                                                              ---                    ---

    Total investment income,
     after-tax                                    $115                                                $107                                        7                   $437                        $419    4
                                                  ====                                                ====                                                           ====                        ====


    Investment returns:

          Effective tax rate             23.5%                              23.6%                                                                     23.6%                 23.7%

        Average invested assets
         plus cash and cash                    $14,525                                             $14,229                                                        $14,515                     $13,951
           equivalents

          Average yield pretax           4.13%                              3.94%                                                                     3.94%                 3.94%

          Average yield after-tax         3.17                                3.01                                                                       3.01                   3.00

    Fixed-maturity returns:

    Effective tax rate                   27.2%                              27.0%                                                                     27.1%                 27.0%

    Average amortized cost                      $9,360                                              $8,898                                                         $9,098                      $8,755

    Average yield pretax                 4.66%                              4.72%                                                                     4.70%                 4.76%

    Average yield after-tax               3.39                                3.45                                                                       3.43                   3.48

    --  $10 million or 7 percent rise in fourth-quarter 2015 pretax investment
        income, including 14 percent growth in equity portfolio dividends and 4
        percent growth in interest income.
    --  $40 million and $52 million fourth-quarter and full-year 2015 impact
        from other-than-temporary impairments to net realized investment gains
        and losses, compared with $23 million and $24 million for fourth-quarter
        and full-year 2014.
    --  $102 million or 5 percent fourth-quarter 2015 net increase in pretax net
        unrealized investment portfolio gains, including a $212 million increase
        for the equity portfolio. The fourth-quarter effect of net realized
        gains from investment portfolio security sales or called bonds was
        immaterial.
    --  $625 million or 23 percent full-year 2015 net decrease in pretax net
        unrealized investment portfolio gains, including a $362 million decrease
        for the equity portfolio. The total decrease included the effect of $121
        million of pretax net realized gains from investment portfolio security
        sales or called bonds during full-year 2015, including $103 million from
        the equity portfolio.



    Balance Sheet Highlights


    (Dollars in
     millions
     except share
     data)                   At December 31,         At December 31,
    -------------

                                      2015                     2014
                                      ----                     ----

    Balance sheet
     data:

       Total
        investments                          $14,423                        $14,386

       Total assets                   18,888                         18,748

       Short-term
        debt                              35                             49

       Long-term debt                    786                            786

       Shareholders'
        equity                         6,427                          6,573

       Book value per
        share                          39.20                          40.14

       Debt-to-
        total-capital
        ratio                          11.3%                         11.3%
       --------------                   ----                           ----

    --  $14.967 billion in consolidated cash and invested assets at December 31,
        2015, down $10 million from $14.977 billion at year-end 2014.
    --  $9.650 billion bond portfolio at December 31, 2015, with an average
        rating of A2/A. Fair value decreased $106 million or 1 percent during
        the fourth quarter of 2015.
    --  $4.706 billion equity portfolio was 32.6 percent of total investments,
        including $1.768 billion in pretax net unrealized gains at December 31,
        2015. Fourth-quarter 2015 increase in fair value of $180 million or 4
        percent.
    --  $4.413 billion of statutory surplus for the property casualty insurance
        group at December 31, 2015, down $59 million from $4.472 billion at
        year-end 2014, after declaring $447 million in dividends to the parent
        company. The ratio of net written premiums to property casualty
        statutory surplus for the 12 months ended December 31, 2015, was
        1.0-to-1, up from 0.9-to-1 at year-end 2014.
    --  Value creation ratio of 3.4 percent for full-year 2015 included
        contributions of 8.9 percentage points from net income before net
        realized investment gains, partially offset by unfavorable effects of
        investment portfolio realized gains and changes in unrealized gains of
        2.6 points from our bond portfolio and 2.9 points from our stock
        portfolio.

For additional information or to register for our conference call webcast, please visit cinfin.com/investors.

Cincinnati Financial Corporation offers business, home and auto insurance, our main business, through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life and disability income insurance, fixed annuities and surplus lines property and casualty insurance. For additional information about the company, please visit cinfin.com.



    Mailing Address:            Street Address:

    P.O. Box 145496             6200 South Gilmore Road

    Cincinnati, Ohio 45250-5496 Fairfield, Ohio 45014-5141

Safe Harbor Statement
This is our "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995. Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by the forward-looking statements in this report. Some of those risks and uncertainties are discussed in our 2014 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 33.

Factors that could cause or contribute to such differences include, but are not limited to:


    --  Unusually high levels of catastrophe losses due to risk concentrations,
        changes in weather patterns, environmental events, terrorism incidents
        or other causes
    --  Increased frequency and/or severity of claims or development of claims
        that are unforeseen at the time of policy issuance
    --  Inadequate estimates, assumptions or reliance on third-party data used
        for critical accounting estimates
    --  Declines in overall stock market values negatively affecting the
        company's equity portfolio and book value
    --  Domestic and global events resulting in capital market or credit market
        uncertainty, followed by prolonged periods of economic instability or
        recession, that lead to:
        --  Significant or prolonged decline in the fair value of a particular
            security or group of securities and impairment of the asset(s)
        --  Significant decline in investment income due to reduced or
            eliminated dividend payouts from a particular security or group of
            securities
        --  Significant rise in losses from surety and director and officer
            policies written for financial institutions or other insured
            entities
    --  Prolonged low interest rate environment or other factors that limit the
        company's ability to generate growth in investment income or interest
        rate fluctuations that result in declining values of fixed-maturity
        investments, including declines in accounts in which we hold bank-owned
        life insurance contract assets
    --  Recession or other economic conditions resulting in lower demand for
        insurance products or increased payment delinquencies
    --  Difficulties with technology or data security breaches, including
        cyberattacks, that could negatively affect our ability to conduct
        business and our relationships with agents, policyholders and others
    --  Disruption of the insurance market caused by technology innovations such
        as driverless cars that could decrease consumer demand for insurance
        products
    --  Delays, inadequate data developed internally or from third parties, or
        performance inadequacies from ongoing development and implementation of
        underwriting and pricing methods, including telematics and other
        usage-based insurance methods, or technology projects and enhancements
        expected to increase our pricing accuracy, underwriting profit and
        competitiveness
    --  Increased competition that could result in a significant reduction in
        the company's premium volume
    --  Changing consumer insurance-buying habits and consolidation of
        independent insurance agencies that could alter our competitive
        advantages
    --  Inability to obtain adequate ceded reinsurance on acceptable terms,
        amount of reinsurance coverage purchased, financial strength of
        reinsurers and the potential for nonpayment or delay in payment by
        reinsurers
    --  Inability to defer policy acquisition costs for any business segment if
        pricing and loss trends would lead management to conclude that segment
        could not achieve sustainable profitability
    --  Inability of our subsidiaries to pay dividends consistent with current
        or past levels
    --  Events or conditions that could weaken or harm the company's
        relationships with its independent agencies and hamper opportunities to
        add new agencies, resulting in limitations on the company's
        opportunities for growth, such as:
        --  Downgrades of the company's financial strength ratings
        --  Concerns that doing business with the company is too difficult
        --  Perceptions that the company's level of service, particularly claims
            service, is no longer a distinguishing characteristic in the
            marketplace
        --  Inability or unwillingness to nimbly develop and introduce coverage
            product updates and innovations that our competitors offer and
            consumers expect to find in the marketplace
    --  Actions of insurance departments, state attorneys general or other
        regulatory agencies, including a change to a federal system of
        regulation from a state-based system, that:
        --  Impose new obligations on us that increase our expenses or change
            the assumptions underlying our critical accounting estimates
        --  Place the insurance industry under greater regulatory scrutiny or
            result in new statutes, rules and regulations
        --  Restrict our ability to exit or reduce writings of unprofitable
            coverages or lines of business
        --  Add assessments for guaranty funds, other insurance-related
            assessments or mandatory reinsurance arrangements; or that impair
            our ability to recover such assessments through future surcharges or
            other rate changes
        --  Increase our provision for federal income taxes due to changes in
            tax law
        --  Increase our other expenses
        --  Limit our ability to set fair, adequate and reasonable rates
        --  Place us at a disadvantage in the marketplace
        --  Restrict our ability to execute our business model, including the
            way we compensate agents
    --  Adverse outcomes from litigation or administrative proceedings
    --  Events or actions, including unauthorized intentional circumvention of
        controls, that reduce the company's future ability to maintain effective
        internal control over financial reporting under the Sarbanes-Oxley Act
        of 2002
    --  Unforeseen departure of certain executive officers or other key
        employees due to retirement, health or other causes that could interrupt
        progress toward important strategic goals or diminish the effectiveness
        of certain longstanding relationships with insurance agents and others
    --  Events, such as an epidemic, natural catastrophe or terrorism, that
        could hamper our ability to assemble our workforce at our headquarters
        location

Further, the company's insurance businesses are subject to the effects of changing social, global, economic and regulatory environments. Public and regulatory initiatives have included efforts to adversely influence and restrict premium rates, restrict the ability to cancel policies, impose underwriting standards and expand overall regulation. The company also is subject to public and regulatory initiatives that can affect the market value for its common stock, such as measures affecting corporate financial reporting and governance. The ultimate changes and eventual effects, if any, of these initiatives are uncertain.



                                         Cincinnati Financial Corporation
                                Condensed Consolidated Balance Sheets (unaudited)


    (Dollars in millions
     except per share data)                         December 31,               December 31,

                                                            2015                        2014
                                                            ----                        ----

    Assets

      Investments

        Fixed maturities, at
         fair value (amortized
         cost: 2015-$9,324;
         2014-$8,871)                                                 $9,650                           $9,460

        Equity securities, at
         fair value (cost:
         2015-$2,938;
         2014-$2,728)                                      4,706                                4,858

        Other invested assets                                 67                                   68

          Total investments                               14,423                               14,386
                                                          ------                               ------

      Cash and cash
       equivalents                                           544                                  591

      Investment income
       receivable                                            129                                  123

      Finance receivable                                      62                                   75

      Premiums receivable                                  1,431                                1,405

      Reinsurance recoverable                                542                                  545

      Prepaid reinsurance
       premiums                                               54                                   29

      Deferred policy
       acquisition costs                                     616                                  578

      Land, building and
       equipment, net, for
       company use
       (accumulated
       depreciation:                                         185                                  194

         2015-$459; 2014-$446)

      Other assets                                           154                                   70

      Separate accounts                                      748                                  752
                                                             ---                                  ---

        Total assets                                                 $18,888                          $18,748
                                                                     =======                          =======

    Liabilities

      Insurance reserves

        Loss and loss expense
         reserves                                                     $4,718                           $4,485

        Life policy and
         investment contract
         reserves                                          2,583                                2,497

      Unearned premiums                                    2,201                                2,082

      Other liabilities                                      717                                  648

      Deferred income tax                                    638                                  840

      Note payable                                            35                                   49

      Long-term debt and
       capital lease
       obligations                                           821                                  822

      Separate accounts                                      748                                  752
                                                             ---                                  ---

        Total liabilities                                 12,461                               12,175
                                                          ------                               ------


    Shareholders' Equity

      Common stock, par value-
       $2 per share;
       (authorized: 2015 and
       2014-500 million
       shares;                                               397                                  397

        issued and outstanding:
         2015 and 2014-198.3
         million shares)

    Paid-in capital                                        1,232                                1,214

    Retained earnings                                      4,762                                4,505

    Accumulated other
     comprehensive income                                  1,344                                1,744

    Treasury stock at cost
     (2015-34.4 million
     share and 2014-34.6
     million shares)                                     (1,308)                             (1,287)
                                                          ------                               ------

    Total shareholders'
     equity                                                6,427                                6,573

    Total liabilities and
     shareholders' equity                                            $18,888                          $18,748
                                                                     =======                          =======



                                                                     Cincinnati Financial Corporation
                                                         Condensed Consolidated Statements of Income (unaudited)



    (Dollars in
     millions except
     per share data)         Three months ended December 31,                Twelve months ended December 31,

                                  2015                    2014                      2015                   2014
                                  ----                    ----                      ----                   ----

    Revenues

       Earned premiums                     $1,148                                          $1,086                $4,480  $4,243

       Investment income,
        net of expenses            150                                 140                                 572       549

       Realized
        investment gains
        and losses, net           (40)                                 32                                  70       133

       Fee revenues                  3                                   3                                  13        12

       Other revenues                2                                   1                                   7         8

          Total revenues         1,263                               1,262                               5,142     4,945
                                 -----                               -----                               -----     -----


    Benefits and
     Expenses

       Insurance losses
        and contract
        holders' benefits          677                                 675                               2,808     2,856

       Underwriting,
        acquisition and
        insurance
        expenses                   354                                 334                               1,387     1,301

       Interest expense             13                                  13                                  53        53

       Other operating
        expenses                     3                                   4                                  13        14
                                   ---                                 ---                                 ---       ---

          Total benefits and
           expenses              1,047                               1,026                               4,261     4,224
                                 -----                               -----                               -----     -----


    Income Before
     Income Taxes                  216                                 236                                 881       721
                                   ---                                 ---                                 ---       ---


    Provision for
     Income Taxes

       Current                      51                                  53                                 231       159

       Deferred                      9                                  16                                  16        37
                                   ---                                 ---                                 ---       ---

          Total provision
           for income taxes         60                                  69                                 247       196
                                   ---                                 ---                                 ---       ---


    Net Income                               $156                                            $167                  $634    $525
                                             ====                                            ====                  ====    ====


    Per Common Share

       Net income-basic                     $0.95                                           $1.03                 $3.87   $3.21

       Net income-
        diluted                   0.94                                1.02                                3.83      3.18
       -----------                ----                                ----                                ----      ----

Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures
(See attached tables for reconciliations; prior-period reconciliations available at cinfin.com/investors.)

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.
    --  Value creation ratio: This is a measure of shareholder value creation
        that management believes captures the contribution of the company's
        insurance operations, the success of its investment strategy and the
        importance placed on paying cash dividends to shareholders. The value
        creation ratio measure is made up of two primary components: (1) rate of
        growth in book value per share plus (2) the ratio of dividends declared
        per share to beginning book value per share. Management believes this
        non-GAAP measure is a useful supplement to GAAP information, providing a
        meaningful measure of long-term progress in creating shareholder value.
        It is intended to be all-inclusive regarding changes in book value per
        share, and uses originally reported book value per share in cases where
        book value per share has been adjusted, such as adoption of Accounting
        Standards Updates with a cumulative effect of a change in accounting.
    --  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.



                                                                                               Cincinnati Financial Corporation

                                                                                                 Balance Sheet Reconciliation


    (Dollars are per share)                                                          Three months ended December 31,                Twelve months ended December 31,
    ----------------------

                                                                                        2015                       2014                    2015                     2014
                                                                                        ----                       ----                    ----                     ----

    Value creation ratio:

       End of period book value                                                                  $39.20                                           $40.14                  $39.20  $40.14

       Less beginning of period book value                                             38.77                                  39.01                               40.14     37.21
                                                                                       -----                                  -----                               -----     -----

       Change in book value                                                             0.43                                   1.13                              (0.94)     2.93

       Dividend declared to shareholders                                                0.92                                   0.44                                2.30      1.76
                                                                                                                                                                 ----      ----

       Total value creation                                                                       $1.35                                            $1.57                   $1.36   $4.69
                                                                                                  =====                                            =====                   =====   =====


    Value creation ratio from change in
     book value*                                                                        1.1%                                  2.9%                             (2.3)%     7.9%

    Value creation ratio from dividends
     declared to                                                                         2.4                                    1.1                                 5.7       4.7
        shareholders**

    Value creation ratio                                                                3.5%                                  4.0%                               3.4%    12.6%
                                                                                         ===                                    ===                                 ===      ====


    *    Change in book value divided by the beginning of period book value

    **   Dividend declared to shareholders divided by beginning of period book value


                                                        Net Income Reconciliation


    (Dollars in
     millions
     except per
     share data)      Three months ended December 31,            Twelve months ended December 31,

                            2015                   2014                  2015                  2014
                            ----                   ----                  ----                  ----

       Net income                     $156                                       $167                  $634   $525

       Realized
        investment
        gains and
        losses, net         (26)                            19                                 45        85
                             ---                            ---                                ---       ---

       Operating
        income               182                            148                                589       440

       Less
        catastrophe
        losses               (9)                             6                              (105)    (133)

       Operating
        income before
        catastrophe
        losses                        $191                                       $142                  $694   $573
                                      ====                                       ====                  ====   ====


    Diluted per
     share data:

       Net income                    $0.94                                      $1.02                 $3.83  $3.18

       Realized
        investment
        gains and
        losses, net       (0.16)                          0.13                               0.27      0.52
                           -----                           ----                               ----      ----

       Operating
        income              1.10                           0.89                               3.56      2.66

       Less
        catastrophe
        losses            (0.05)                          0.04                             (0.63)   (0.81)

       Operating
        income before
        catastrophe
        losses                       $1.15                                      $0.85                 $4.19  $3.47
                                     =====                                      =====                 =====  =====



                                                                                                              Cincinnati Financial Corporation


                                                                                                         Property Casualty Operations Reconciliation


    (Dollars in
     millions)                                                                    Three months ended December 31, 2015

                                                     Consolidated*              Commercial                  Personal                    E&S
                                                    ------------           ----------               --------                 ---

    Premiums:

       Written premiums                                        $1,055                                                          $712                              $266           $44

       Unearned premiums change                          40                                               49                                                14               0
                                                        ---                                              ---                                               ---             ---

       Earned premiums                                         $1,095                                                          $761                              $280           $44
                                                               ======                                                          ====                              ====           ===


    Statutory ratios:

       Combined ratio                                 88.6%                                           88.6%                                            95.1%          50.7%

       Contribution from
        catastrophe losses                              1.2                                              1.0                                               1.8             0.1

       Combined ratio excluding
        catastrophe losses                            87.4%                                           87.6%                                            93.3%          50.6%
                                                       ====                                             ====                                              ====            ====


       Commission expense ratio                       19.7%                                           19.5%                                            17.9%          28.8%

       Other underwriting expense
        ratio                                          12.6                                             14.0                                              11.5             3.0

       Total expense ratio                            32.3%                                           33.5%                                            29.4%          31.8%
                                                       ====                                             ====                                              ====            ====


    GAAP ratios:

       Combined ratio                                 87.0%                                           86.8%                                            94.0%          48.1%

       Contribution from
        catastrophe losses                              1.2                                              1.0                                               1.8             0.1

       Prior accident years
        before catastrophe losses                     (3.8)                                           (4.1)                                              1.5          (32.5)

       Current accident year
        combined ratio before
        catastrophe losses                            89.6%                                           89.9%                                            90.7%          80.5%
                                                       ====                                             ====                                              ====            ====


    (Dollars in
     millions)                                                              Twelve months ended December 31, 2015

                                                   Consolidated*           Commercial               Personal                 E&S
                                                    ------------           ----------               --------                 ---

    Premiums:

       Written premiums                                        $4,361                                                        $3,025                            $1,128          $175

       Unearned premiums change                        (90)                                            (29)                                             (31)            (7)
                                                        ---                                              ---                                               ---             ---

       Earned premiums                                         $4,271                                                        $2,996                            $1,097          $168
                                                               ======                                                        ======                            ======          ====


    Statutory ratios:

       Combined ratio                                 90.6%                                           88.3%                                           100.0%          71.9%

       Contribution from
        catastrophe losses                              3.7                                              3.1                                               6.2             0.4

       Combined ratio excluding
        catastrophe losses                            86.9%                                           85.2%                                            93.8%          71.5%
                                                       ====                                             ====                                              ====            ====


       Commission expense ratio                       18.5%                                           18.3%                                            17.7%          27.2%

       Other underwriting expense
        ratio                                          11.9                                             13.0                                              10.4             2.8

       Total expense ratio                            30.4%                                           31.3%                                            28.1%          30.0%
                                                       ====                                             ====                                              ====            ====


    GAAP ratios:

       Combined ratio                                 91.1%                                           88.6%                                           101.3%          70.0%

       Contribution from
        catastrophe losses                              3.7                                              3.1                                               6.2             0.4

       Prior accident years
        before catastrophe losses                     (3.9)                                           (4.7)                                              0.8          (20.6)

       Current accident year
        combined ratio before
        catastrophe losses                            91.3%                                           90.2%                                            94.3%          90.2%
                                                       ====                                             ====                                              ====            ====


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

    *Consolidated property casualty data includes results from our Cincinnati Re operations.

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SOURCE Cincinnati Financial Corporation