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CINCINNATI FINANCIAL CORPORATION
Page 1
CINCINNATI FINANCIAL CORPORATION
Mailing Address:
P.O. BOX 145496
CINCINNATI, OHIO 45250-5496
513-870-2000
February 26, 2007
To Our Shareholders, Associates and Friends:
Your company???s main business, property casualty insurance underwriting, was profitable in the fourth quarter and
full-year 2006 ??? yet not as highly profitable as in the same periods in 2005. In the attached fourth-quarter earnings release,
you???ll read about the emergence of price competition in the marketplace, higher catastrophe losses, increasing claim
severity, higher underwriting expenses and other trends, as well as their effects on income for the recently completed and
upcoming periods.
In the current environment, as in the past, our intention is to write insurance profitably by maintaining underwriting
discipline and to pay claims and expenses from current cash flow. Over time, this approach allows us to increase the net
worth of the company, as measured by shareholders??? equity, by holding equity investments that bring us the potential for
long-term appreciation as well as steadily increasing dividend income.
It went largely unnoticed that your shareholders??? equity rose 12.9 percent to an all-time high of $6.808 billion, or book
value of $39.38 per share, at the end of the fourth quarter. While the early 2006 sale of our Alltel Corporation common
stock holdings accounted for a large portion of the increase in 2006 net income, it was not a factor in the increase in book
value. That increase was attributable to the contribution to earnings of insurance operations and investment income as
well as significant appreciation over the course of the year in the rest of the equity portfolio.
Our equity holdings outperformed the Standard & Poor???s 500 Index in 2006, returning 16.1 percent. While we fell below
that benchmark for the five-year period that just ended, total return on the equity portfolio also surpassed the return on the
Index over the 10- and 15-year periods that better measure our success as a buy-and-hold investor.
We began this letter saying that property casualty insurance is our main business but investment operations are another
source of profits and wealth. While our fixed income portfolio covers current insurance liabilities, the equity portfolio
supports the accumulation over time of unrealized gains that build book value for shareholders. This cushion of financial
strength and flexibility also benefits agents and policyholders, supporting a long-term perspective that leads us to behave
consistently in the marketplace; make prompt, fair claim payments and set adequate reserves; and continue investing in
the infrastructure for growth. Our insurance strategies and investment strategies are a good match and we believe their
combined results will continue bringing you value in 2007.
Respectfully,
/S/ John J. Schiff, Jr.
/S/ James E. Benoski
John J. Schiff, Jr., CPCU
James E. Benoski
Chairman and Chief Executive Officer
Vice Chairman, President and
Chief Operating Officer

Page 2
2
Recent News Releases
Cincinnati Financial Corporation Increases Cash Dividend and Announces Board Actions
??? Sets stage for 47thconsecutive year of higher dividends with 6% increase in indicated annual dividend rate
??? Confirms slate of nominees for election by shareholders on May 5
Affirms codes of conduct and ethics and committee charters and updates governance guidelines
Cincinnati, February 5, 2007 -- Cincinnati Financial Corporation (Nasdaq: CINF) today announced that the board of
directors voted at its regular meeting on February 2, 2007, to increase the regular quarterly cash dividend 6 percent to 35.5 cents
per share, payable April 16, 2007, to shareholders of record on March 23, 2007. At the new level, the indicated annual dividend
is $1.42 per share. Cash dividends declared in 2006 were $1.34 per share.
Chairman and Chief Executive Officer John J. Schiff, Jr., CPCU, commented, ???Careful attention to property casualty
underwriting and our total-return investment strategy has helped us maintain a strong financial position and achieve industry-
leading results over the long-term. Today???s action signals the board???s continuing confidence in our long-term outlook.
Cincinnati Financial's common stock total return to shareholders over the five years ended December 31, 2006, was
49.4 percent compared with a 35.0 percent total return for the Standard & Poor's 500 Index.
The company also announced that the board confirmed the slate of nominees for election at the company's annual meeting of
shareholders on May 5, 2007. Directors standing for re-election for three-year terms to expire in 2010 are: Dirk J. Debbink,
Douglas S. Skidmore and newly appointed director Gregory T. Bier, CPA (retired). As previously announced, Michael Brown
and John M. Shepherd, current directors, will not stand for re-election due to the company???s guidelines on director age. The
board determined that 10 of the current 15 members meet the applicable criteria for independence.
The board also approved the code of ethics for senior financial officers, the code of conduct for all company associates and
board committee charters, which are reviewed annually by the respective committees as stipulated in the governance guidelines.
Further, the board formalized several current company practices with updates to the corporate governance guidelines on board
membership criteria, director elections and stock ownership guidelines for directors and officers.
???Cincinnati Financial???s management and directors purposefully align business decisions with our mission, which includes
fulfilling the company???s obligations to its independent agents, policyholders and shareholders as well as associates, suppliers
and communities it serves. We work diligently to meet those obligations and to act with integrity,??? said Schiff.
Cincinnati Financial plans to report fourth-quarter and year-end 2006 results on Wednesday, February 7. A conference call to
discuss the results will be held at 11:00 a.m. EST on that day. Details regarding the Internet broadcast of the conference call are
available on www.cinfin.com/investors, as are the code of ethics, code of conduct, board committee charters and corporate
governance guidelines.

Page 3
3
2006
2005
Change %
2006
2005
Change %
Revenue Highlights
Earned premiums
$
832 $
803
3.6 $
3,278 $
3,164
3.6
Investment income
145
136
6.7
570
526
8.4
Total revenues
995
967
2.9
4,550
3,767
20.8
Income Statement Data
Net income
$
130 $
183
(28.6) $
930 $
602
54.5
Net realized investment gains and losses
8
16
(49.7)
434
40
993.0
Operating income*
$
122 $
167
(26.6) $
496 $
562
(11.8)
Per Share Data (diluted)
Net income
$
0.75 $
1.03
(27.2) $
5.30 $
3.40
55.9
Net realized investment gains and losses
0.05
0.09
(44.4)
2.48
0.23
978.3
Operating income*
$
0.70 $
0.94
(25.5) $
2.82 $
3.17
(11.0)
Book value
$
39.38 $
34.88
12.9
Cash dividend declared
$
0.335 $
0.305
9.8 $
1.34 $
1.205
11.2
Weighted average shares outstanding
(1.2)
(0.9)
Twelve months ended December 31,
(Dollars in millions except share data)
Three months ended December 31,
174,988,162
177,045,508
175,451,341
177,116,126
Cincinnati Financial 2006 Net Income at $5.30 per Share and Operating Income* at $2.82
Cincinnati, February 7, 2007 ??? Cincinnati Financial Corporation (Nasdaq: CINF) today reported:
???
Fourth-quarter net income of 75 cents per share and operating income of 70 cents per share
???
Full-year net income of $5.30 per share including $2.35 from first-quarter 2006 sale of Alltel common stock holding.
???
Record book value of $39.38 per share, up 12.9 percent from year-end 2005.
???
Property casualty underwriting profits of $181 million tempered by higher catastrophe losses, increased loss severity
and less savings from favorable development on prior period losses as well as higher underwriting expenses.
Financial Highlights
Insurance Operations Highlights
???
3.8 percent and 3.3 percent increases in fourth-quarter and full-year property casualty net written premiums.
???
Strong commercial lines growth with 2006 net written premiums up 6.7 percent and new business written by our
agencies up 14.9 percent to a record $324 million.
???
Second-half 2006 personal lines new business up 17.6 percent. Pricing changes made July 1, 2006, improved ability
to market personal lines.
???
94.5 percent and 94.3 percent fourth-quarter and full-year property casualty combined ratios, in line with previous
announcement.
???
5.5 percentage points from catastrophe losses in the 2006 fourth-quarter and full-year combined ratios. In the
comparable 2005 periods, catastrophe losses accounted for 5.6 and 4.1 percentage points of the ratios.
???
4 cents and 19 cents contribution from the life insurance operations to fourth-quarter and full-year operating income.
Investment and Balance Sheet Highlights
???
6.7 percent and 8.4 percent growth in fourth-quarter and full-year pretax investment income.
???
Book value of $39.38 at year-end 2006, up $4.50 from year-end 2005. Invested assets rose on new investments and
appreciation in the equity portfolio.
Full-year 2007 Outlook**
???
Property casualty net written premium growth expected to be in the low single digits in 2007. New agency
appointments and new states to help drive long-term growth.
???
Combined ratio expected to be 97 percent to 99 percent in 2007, assuming catastrophe losses contribute
approximately 5.5 percentage points.
???
Investment income growth target at 6.5 percent to 7.0 percent range for 2007.
*
The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures on www.cinfin.com defines and reconciles measures
presented in this release that are not based on Generally Accepted Accounting Principles or Statutory Accounting Principles.
**
Outlook and related assumptions are subject to the risks outlined in the company???s forward-looking information safe-harbor statement (see Page 15).

Page 4
4
Current Results and Long-term Position
???We reached record levels of new business and total property casualty insurance premiums in 2006 in the face of
growing competition,??? said John J. Schiff, Jr., CPCU, chairman and chief executive officer. ???Business policyholders
continued to respond favorably to their local independent agents??? presentation of the Cincinnati value proposition.
In the second half of the year, agents and personal lines policyholders responded to new pricing for Cincinnati???s
personal lines products with higher customer retention rates and rising new business. Further, our equity-focused
investment strategy led to another year of record investment income and record book value.???
???However, other factors dampen our enthusiasm for those favorable results. Nine catastrophe events, primarily
storms affecting our policyholders in the Midwest, led to a record level of catastrophe losses even as the industry
experienced a lighter catastrophe year. Loss severity crept upward. And ongoing investment in our people and our
infrastructure, including technology and systems to make it easier for agents to do business with our company,
contributed to expenses rising more rapidly than premiums,??? Schiff noted.
???Finally, this year???s earnings reflected the adoption of stock option expensing, and as anticipated, savings from
favorable development on prior period losses was below the unusually high level of the past few years,???
Schiff noted.
???We look beyond this year with confidence. We remain committed to providing a stable market for our agents??? high
quality business, underwriting this business carefully and producing steady value for our shareholders, as
represented by the board of directors??? recent decision to increase our 2007 indicated annual dividend by 6 percent,
which would mark the 47
th
consecutive year of increase in that measure. Their action reflected our belief that we
can achieve above-industry-average growth in written premiums and industry-leading profitability over the long
term by building on our proven strategies: strong agency relationships, front-line underwriting, quality claims
service, solid reserves, and total return investing,??? Schiff said.
New States and New Agency Appointments to Support Continued Growth
Schiff added, ???We finished 2006 with more agencies than ever, making 55 new agency appointments during the
course of the year. Over the past 10 years, we have selectively added more than 400 highly professional agencies.
As part of our plans for 2007, we expect to appoint another 50+ agencies. We are working on plans to enter
New Mexico and eastern Washington within the next year and will soon begin the process by preparing policy
forms and rates to submit to the departments of insurance in those states.
???Whether appointing new agencies in our current states or moving into new geographic areas, we look for the most
professionally managed agencies in each area where we see opportunities to bring Cincinnati???s insurance products
and services to families and businesses. Field teams introduce these agencies to the Cincinnati value proposition ???
customized coverage packages, multi-year commercial policies, superior claims service, our A++ rating from
A.M. Best Co. and local field representatives with decision-making authority. Within the five years following an
appointment, Cincinnati sets out to earn a prominent position among the carriers serving that agency. We have seen
annual premiums from newly appointed agencies rise to an average of approximately $2 million by the fifth year.???
2006 Catastrophe Losses
James E. Benoski, vice chairman, chief insurance officer and president, said, ???Again in 2006, policyholders had
ample opportunities to benefit from the Cincinnati relationship. In early October, a Midwest storm caused heavy
hail damage in central Ohio, resulting in an estimated $38 million of losses for our policyholders. In late-November,
another storm across the Midwest resulted in $8 million of fourth-quarter losses.
???Of the more than 12,000 catastrophe claims reported through January 31, 2007, for severe storms during 2006,
more than 90 percent are already closed. Our field claims representatives??? prompt responses and personal approach
reflect positively on our agents, supporting their marketing efforts,??? Benoski noted.

Page 5
5
2006
2005
Change %
2006
2005
Change %
Written premiums
$
755
$
727
3.8 $
3,178
$
3,076
3.3
Earned premiums
$
802
$
775
3.5 $
3,164
$
3,058
3.5
Loss and loss expenses excluding catastrophes
458
373
22.6
1,833
1,685
8.8
Catastrophe loss and loss expenses
44
44
1.1
175
127
37.9
Commission expenses
144
142
1.6
596
592
0.7
Underwriting expenses
108
93
14.6
363
319
13.9
Policyholder dividends
4
(2)
300.9
16
5
208.1
Underwriting profit
$
44
$
125
(64.6) $
181
$
330
(45.2)
Ratios as a percent of earned premiums:
Loss and loss expenses excluding catastrophes
57.1 %
48.2 %
58.0 %
55.1 %
Catastrophe loss and loss expenses
5.5
5.6
5.5
4.1
Loss and loss expenses
62.6 %
53.8 %
63.5 %
59.2 %
Commission expenses
18.0
18.3
18.8
19.4
Underwriting expenses
13.3
12.1
11.5
10.4
Policyholder dividends
0.6
(0.3)
0.5
0.2
Combined ratio
94.5 %
83.9 %
94.3 %
89.2 %
(Dollars in millions)
Three months ended December 31,
Twelve months ended December 31,
2007 Property Casualty Outlook Update
Kenneth W. Stecher, chief financial officer and executive vice president commented, ???While we expect competition
to continue accelerating in most property casualty business lines in 2007, we believe that our strong agency
relationships will lead to full-year 2007 net written premium growth in the low single digits. That growth rate takes
into account an anticipated $22 million increase in reinsurance premiums we pay. Our strong financial position
affords us the flexibility to help manage the increase by raising our risk retention to a slightly higher level.???
Stecher added, ???If catastrophe losses contribute approximately 5.5 percentage points to the ratio, we would expect
the full-year combined ratio to be in the 97 percent to 99 percent range. Several factors support this view. First, the
loss and loss expense ratio may move up as pricing becomes even more competitive and loss costs increase.
???Second, we continue to see favorable reserve development attributable to improving loss trends following the
re-underwriting of our commercial lines business between 2000 and 2003. As more data that reflects the improved
commercial lines risk profile becomes available, we should be able to improve the accuracy of our initial estimates
of reserves for incurred by not yet reported claims. Over the next several years, these ongoing improvements in the
accuracy of reserve estimates should result in savings from favorable development moving below this year???s level.
???Finally, continued investment in people and technology may contribute to an increase in other underwriting
expenses, particularly while premium growth is slowing.???
Investment Strategy Key to Long-term Growth and Stability
???Our buy-and-hold equity investing strategy is key to the company???s long-term growth and stability,??? Schiff noted.
???We are looking for pretax investment income growth in the range of 6.5 percent to 7.0 percent in 2007, and we
continue to invest to further build book value, an important measure of our long-term success.???
Schiff noted, ???In 2007, we anticipate allocating a higher proportion of cash available for investment to equity
securities. We continue to identify companies with the potential for revenue, earnings and dividend growth, a strong
management team and favorable outlook. These equities offer a steadily increasing flow of dividend income along
with the potential for capital appreciation.???
Stecher added, ???When allocating available cash for investment between fixed-maturity securities, equities and share
repurchase, we are mindful of rating agency capitalization measures. We believe that our strong capitalization and
high insurer financial strength ratings give our agents a distinct advantage marketing to value-oriented clients.???
Property Casualty Insurance Operations
The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures on www.cinfin.com defines and reconciles
measures presented in this release that are not based on Generally Accepted Accounting Principles (non-GAAP).

Page 6
6
Commercial
Personal
Dates
Cause of loss
lines
lines
Total
Mar. 11-13
Wind, hail
Midwest, Mid-Atlantic
$
29 $
8 $
37
Apr. 2-3
Wind, hail
Midwest
12
5
17
Apr. 6-8
Wind, hail
South
13
24
37
Apr. 13-15
Wind, hail
South
4
6
10
Jun. 18-22
Wind, hail, flood
South
3
2
5
Jul. 19-21
Wind, hail, flood
South
4
1
5
Aug. 23-25
Wind, hail, flood
Midwest
5
2
7
Oct. 2-4
Wind, hail, flood
Midwest
7
31
38
Nov. 30 - Dec. 3
Wind, hail, ice, snow
Midwest, South
4
4
8
Other 2006 and development on 2005 and prior catastrophes
8
3
11
Totals
$
89 $
86 $
175
Region
Twelve months ended December 31, 2006
(In millions, net of reinsurance)
???
3.8 percent rise in fourth-quarter property casualty net written premiums, with a 3.3 percent full-year increase.
???
$88 million in fourth-quarter new business written directly by agencies, up 6.3 percent. Full-year new business rose
13.5 percent to $357 million.
???
1,066 agency relationships with 1,289 reporting locations marketing our insurance products at year-end 2006, up
from 1,024 agency relationships with 1,252 locations at year-end 2005.
???
94.3 percent full-year 2006 property casualty combined ratio. The ratio rose 5.1 percentage points largely because of
softer pricing, higher catastrophe losses, increased loss severity, less savings from favorable development on prior
period losses and higher expenses.
???
$44 million in fourth-quarter 2006 catastrophe losses, reflecting $46 million from severe storms during the period
and $2 million of savings from development on prior period storms. $175 million in full-year 2006 catastrophe
losses contributed 5.5 percentage points to the combined ratio.
Catastrophe Loss and Loss Expenses Incurred
???
Fourth-quarter 2006 net savings from favorable development on prior period reserves improved the combined ratio
by 10.0 percentage points. In last year???s fourth quarter, savings improved the ratio by 10.3 percentage points.
???
Full-year 2006 net savings from favorable development improved the combined ratio by 3.7 percentage points.
In 2005, savings improved the ratio by 5.2 percentage points.
???
2007 property casualty reinsurance program finalized. Program updated to maintain balance between the cost of the
programs and the level of risk retained. Estimated incremental premium increase of $22 million primarily due to
higher rates.
2007 Reinsurance Programs
Treaties
Retention Summary
Comments
Property catastrophe treaty
For any one event:
??? Retain 100% of first $45 million in losses
??? Retain 5% of losses between $45 million and
$200 million
??? Retain 14% of losses between $200 million and
$300 million
??? Retain 18% of losses between $300 million and
$500 million
??? After reinsurance, our maximum exposure
to a catastrophic event that caused
$500 million in covered losses would be
$103 million compared with $68 million in
2006. The largest catastrophe loss in our
history was $87 million before reinsurance.
Property and casualty per risk
treaties
For a single loss:
??? Retain 100% of first $4 million in losses
??? Retain 0% of losses between $4 million and
$25 million
??? Obtain facultative reinsurance for losses above
$25 million
??? No changes in 2007
Casualty third excess treaty
??? $25 million excess of $25 million
??? No changes in 2007
Casualty fourth excess treaty
??? $20 million excess of $50 million
??? No changes in 2007

Page 7
7
2006
2005
Change %
2006
2005
Change %
Written premiums
$
589
$
548
7.5 $
2,442
$
2,290
6.7
Earned premiums
$
619
$
576
7.4 $
2,402
$
2,254
6.6
Loss and loss expenses excluding catastrophes
357
280
27.1
1,377
1,222
12.7
Catastrophe loss and loss expenses
11
14
(18.0)
89
76
16.6
Commission expenses
113
114
(0.4)
444
438
1.4
Underwriting expenses
79
67
16.4
268
228
17.8
Policyholder dividends
4
(2)
300.9
16
5
208.1
Underwriting profit
$
55
$
103
(46.4) $
208
$
285
(27.0)
Ratios as a percent of earned premiums:
Loss and loss expenses excluding catastrophes
57.6 %
48.7 %
57.3 %
54.2 %
Catastrophe loss and loss expenses
1.9
2.4
3.7
3.4
Loss and loss expenses
59.5 %
51.1 %
61.0 %
57.6 %
Commission expenses
18.3
19.7
18.5
19.5
Underwriting expenses
12.6
11.7
11.1
10.1
Policyholder dividends
0.7
(0.4)
0.7
0.2
Combined ratio
91.1 %
82.1 %
91.3 %
87.4 %
Three months ended December 31,
Twelve months ended December 31,
(Dollars in millions)
Commercial Lines Insurance Operations
???
7.5 percent growth in fourth-quarter commercial lines net written premiums, with a 6.7 percent full-year increase.
???
$80 million in new commercial lines business written directly by agencies in fourth-quarter 2006, up 4.9 percent.
Full-year new commercial lines business rose 14.9 percent to record $324 million.
???
91.3 percent full-year 2006 commercial lines combined ratio. The ratio rose 3.9 percentage points largely because of
softer pricing, increasing loss severity, less savings from favorable development on prior period reserves and
adoption of stock option expensing.
???
Fourth-quarter 2006 net savings from favorable development on prior period reserves improved the commercial lines
combined ratio by 10.0 percentage points. In last year???s fourth quarter, savings improved the ratio by 9.6 percentage
points.
???
Full-year 2006 net savings from favorable development improved the commercial lines combined ratio by
4.1 percentage points. In 2005, savings improved the ratio by 5.6 percentage points.
???
1.0 percentage-point decrease in full-year commercial lines commission expense ratio, primarily due to lower profit-
sharing commissions on lower overall underwriting profits.
???
1.0 percentage-point increase in full-year commercial lines non-commission expense ratio, excluding policyholder
dividends. Higher staffing expense was the primary reason for the increase, with stock option expense contributing
0.5 percentage-points to the ratio. Higher technology expense also contributed to the increase.
???
Commercial casualty, commercial property and workers??? compensation ??? three of the company???s four largest
commercial business lines ??? reported strong net written premium growth in 2006. Healthy new business and policy
retention rates offset pricing pressures due to competitive market conditions. As expected, the fourth of the largest
business lines ??? commercial auto ??? saw net written premiums decline slightly due to pricing.
???
Continued strong commercial lines profitability although softer pricing, increased loss severity and changes in
reserve development also affected comparisons for some business lines. For the second consecutive quarter, the
commercial auto and workers??? compensation business lines experienced higher-than-anticipated new large losses. In
the fourth quarter, new large losses in the commercial casualty business line also were higher than anticipated.
???
2007 plans include integration with agency management systems for WinCPP??, the company???s online, real-time
commercial lines rate quoting system used by all agencies. Plans also include roll-out of Businessowner (BOP) and
Dentist???s Package Policy (DBOP) capabilities in 12 additional states for e-CLAS???, the company???s Web-based
policy processing system currently used in seven states representing 44 percent of BOP and DBOP premiums.
The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures on www.cinfin.com defines and reconciles
measures presented in this release that are not based on Generally Accepted Accounting Principles (non-GAAP).

Page 8
8
Change %
2006
2005
Change %
Written premiums
$
166
$
179
(7.4) $
736
$
786
(6.4)
Earned premiums
$
183
$
199
(8.0) $
762
$
804
(5.3)
Loss and loss expenses excluding catastrophes
101
93
9.3
456
463
(1.5)
Catastrophe loss and loss expenses
33
30
10.2
86
51
69.8
Commission expenses
31
28
9.6
152
154
(1.6)
Underwriting expenses
29
26
10.0
95
91
4.2
Underwriting profit (loss)
$
(11)
$
22
(150.2) $
(27)
$
45
(160.0)
Ratios as a percent of earned premiums:
Loss and loss expenses excluding catastrophes
55.5 %
46.8 %
59.9 %
57.6 %
Catastrophe loss and loss expenses
17.9
14.9
11.3
6.3
Loss and loss expenses
73.4 %
61.7 %
71.2 %
63.9 %
Commission expenses
16.9
14.2
19.9
19.2
Underwriting expenses
15.7
13.1
12.5
11.3
Combined ratio
106.0 %
89.0 %
103.6 %
94.4 %
(Dollars in millions)
Three months ended December 31,
Twelve months ended December 31,
2005
2006
Personal Lines Insurance Operations
???
7.4 percent decrease in fourth-quarter personal lines net written premiums, with a 6.4 percent full-year decrease, in
part due to reduced pricing effective July 2006.
???
17.6 percent increase in new personal lines business written directly by agencies for the second half of 2006,
following the pricing changes that improved agents??? ability to market personal lines. With pricing reduced to better
compete in the current market, agents had more opportunity to sell service and value, contributing to improved
policy retention and new business growth.
???
Fourth-quarter 2006 personal lines new business rose 21.3 percent to $9 million. Second-half new business growth
offset the decline in the first half of 2006, leading to 1.6 percent full-year new business growth.
???
103.6 percent 2006 personal lines combined ratio. The 9.2 percentage-point increase reflected a 5.0 percentage point
rise in catastrophe losses. Other factors included the decline in earned premiums, less savings from favorable
development on prior period reserves, the third-quarter 2006 uptick in loss severity and higher expenses.
???
Fourth-quarter 2006 net savings from favorable development on prior period reserves improved the personal lines
combined ratio by 9.6 percentage points. In last year???s fourth quarter, savings improved the ratio by 12.5 percentage
points.
???
Full-year 2006 net savings from favorable development improved the personal lines combined ratio by
2.4 percentage points. In 2005, savings improved the ratio by 4.3 percentage points.
???
0.7 percentage-point increase in full-year personal lines commission expense ratio, primarily because of higher
contingent commissions due to accrual and allocation adjustments.
???
1.2 percentage point increase in personal lines non-commission expense ratio. Higher staffing expense contributed to
the increase, with stock option expense adding 0.5 percentage-points to the ratio. Higher technology expense was the
other significant factor in the increase.
???
82 percent of agencies writing personal lines policies now use Diamond, the company???s personal lines policy
processing system. Approximately 90 percent of total 2006 personal lines earned premium volume was written in the
13 active Diamond states. Agents in Pennsylvania and Virginia will begin using Diamond early this year, with
several other states planned for later in 2007.
???
Personal auto ??? the company???s largest personal business line ??? reported another full year of healthy profitability
despite a fourth-quarter uptick in the loss ratio.
???
Homeowner results reflected higher catastrophe losses as well as industrywide trends of higher material costs,
increased insured property values and rising deductibles. Loss severity returned to a more normal level after rising in
the third quarter.
The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures on www.cinfin.com defines and reconciles
measures presented in this release that are not based on Generally Accepted Accounting Principles (non-GAAP).

Page 9
9
Change %
Change %
Written premiums
$
41 $
43
(5.1) $
161 $
205
(21.3)
Earned premiums
$
31 $
28
10.5 $
115 $
106
7.9
Investment income, net of expenses
27
26
4.0
108
99
8.4
Other income
1
1
(2.3)
3
4
(0.2)
Total revenues, excluding realized investment gains
and losses
59
55
7.2
226
209
8.0
Policyholder benefits
30
25
22.9
122
102
20.1
Expenses
18
15
17.7
51
52
(1.8)
Total benefits and expenses
48
40
20.9
173
154
12.6
Net income before income tax and
realized investment gains and losses
11
15
(29.5)
53
55
(5.0)
Income tax
4
6
(36.0)
19
19
(1.9)
Net income before realized investment
gains and losses
$
7 $
9
(25.5) $
34 $
36
(6.6)
(In millions)
Three months ended December 31,
Twelve months ended December 31,
2006
2005
2006
2005
Life Insurance Operations
???
$161 million in full-year 2006 total life insurance segment net written premiums, compared with $205 million in
2005. Written premiums include life insurance, annuity and accident and health premiums.
???
12.7 percent increase to $127 million in statutory written premiums for term and other life insurance products in
2006. Since late 2005, the company has de-emphasized annuities because of an unfavorable interest rate
environment. Statutory written annuity premiums decreased to $30 million in 2006 from $88 million in 2005.
???
27.2 percent rise in 2006 term life insurance written premiums reflecting competitive advantages of offering
competitive, up-to-date products, providing close personal attention and exhibiting financial strength and stability.
???
10.6 percent rise in face amount of life policies in force to $56.871 billion at year-end 2006, from $51.493 billion at
year-end 2005.
???
$19 million increase in full-year 2006 benefits and expenses compared with 2005, principally due to reserve and
mortality expense increases associated with growth and aging of life insurance in force. Mortality experience
remained within pricing guidelines. Adoption of stock option expensing contributed approximately $1 million to
operating expenses.
???
2007 plans include enhancement of term and other life insurance products, including an expanded worksite product
portfolio, and introduction of two new universal and whole life products. The priority continues to be expansion
within the insurance agencies currently marketing our property casualty insurance products.
The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures on www.cinfin.com defines and reconciles
measures presented in this release that are not based on Generally Accepted Accounting Principles (non-GAAP).

Page 10
10
2006
2005
Change %
2006
2005
Change %
Investment income:
Interest
$
75 $
72
3.9 $
300 $
280
7.1
Dividends
68
63
7.4
262
244
7.5
Other
4
2
133.2
15
8
90.0
Investment expenses
(2)
(1)
(34.2)
(7)
(6)
(19.3)
Total net investment income
145
136
6.7
570
526
8.4
Investment interest credited to contract holders
(14)
(13)
(4.8)
(54)
(51)
(5.7)
Net realized investment gains and losses:
Realized investment gains and losses
11
28
(60.9)
678
69
883.0
Change in valuation of embedded derivatives
2
(5)
131.0
7
(7)
200.7
Other-than-temporary impairment charges
0
0
(100.0)
(1)
(1)
41.7
Net realized investment gains (losses)
13
23
(46.6)
684
61
1,026.0
Investment operations income
$
144 $
146
(1.5) $
1,200 $
536
124.0
(In millions)
Twelve months ended December 31,
Three months ended December 31,
2006
2005
Balance sheet data
Invested assets
$
13,759
$
12,702
Total assets
17,222
16,003
Short-term debt
49
0
Long-term debt
791
791
Shareholders' equity
6,808
6,086
Book value per share
39.38
34.88
Debt-to-capital ratio
11.0 %
11.5 %
2006
2005
2006
2005
Performance measures
Comprehensive income
$
449
$
137
$
1,057
$
99
Return on equity
7.9 %
12.1 %
14.4 %
9.8 %
Return on equity based on comprehensive income
27.0
9.1
16.4
1.6
(Dollars in millions except share data)
Three months ended Dec. 31,
Twelve months ended Dec. 31,
At December 31,
Investment Operations
???
6.7 percent increase in fourth-quarter pretax net investment income with 8.4 percent increase for the year. Fifth Third
Bancorp, the company???s largest equity holding, contributed 43.8 percent of 2006 full-year dividend income.
???
Growth in investment income reflected new investments, higher interest income from the growing fixed-maturity
portfolio and increased dividend income from the common stock portfolio. In addition, proceeds from the sale of the
Alltel Corporation holding used to make the applicable tax payments in 2006 were invested in short-term
instruments that generated approximately $5 million in interest income in 2006.
???
$16 million annually in additional investment income expected during 2007 from dividend increases announced
during 2006 by Fifth Third and another 37 of the 50 common stock holdings in the equity portfolio.
???
$684 million in full-year 2006 net realized investment gains (pretax), including $647 million from the first-quarter
sale of the company???s holdings of Alltel common stock.
Balance Sheet
???
Book value of $39.38 at year-end 2006, up $4.50 from year-end 2005 level. Invested assets rose from year-end 2005
because of new investments and appreciation in the equity portfolio. Equity portfolio returned 16.1 percent in 2006
compared with a 15.8 percent return for the Standard & Poor???s 500 Index.
???
$4.723 billion in statutory surplus for the property casualty insurance group at year-end 2006, up from
$4.220 billion at year-end 2005. The ratio of common stock to statutory surplus for the property casualty insurance
group portfolio was 97.3 percent at year-end 2006, compared with 96.4 percent at year-end 2005.
???
31.5 percent ratio of investment securities held at the holding-company level to total holding-company-only assets at
year-end 2006, comfortably within management???s below-40 percent target.
???
504,221 shares repurchased in fourth quarter. Full-year 2006 repurchases totaled 2,646,787 shares for a total cost of
$118 million.
Notice: ??? Final number ??? Indicates 2006 data updated from original release following completion of the quarterly
reporting process.
The Definitions of Non-GAAP Information and Reconciliation to Comparable GAAP Measures on www.cinfin.com defines and reconciles
measures presented in this release that are not based on Generally Accepted Accounting Principles (non-GAAP).
#
#
#
#
#
#
#

Page 11
11
December 31,
December 31,
2006
2005
(unaudited)
ASSETS
Fixed maturities, at fair value (amortized cost: 2006???$5,739; 2005???$5,387)
$
5,805 $
5,476
Equity securities, at fair value (cost: 2006???$2,621; 2005???$2,128)
7,799
7,106
Short-term investments, at fair value (amortized cost: 2006???$95; 2005???$75)
95
75
Other invested assets
60
45
Cash and cash equivalents
202
119
Investment income receivable
121
117
Finance receivable
108
105
Premiums receivable
1,128
1,116
Reinsurance receivable
683
681
Prepaid reinsurance premiums
13
14
Deferred policy acquisition costs
453
429
193
168
Other assets
58
66
Separate accounts
504
486
Total assets
$
17,222 $
16,003
Insurance reserves
Loss and loss expense reserves
$
3,896 $
3,661
Life policy reserves
1,409
1,343
Unearned premiums
1,579
1,559
Other liabilities
533
455
Deferred income tax
1,653
1,622
Notes payable
49
0
6.125% senior notes due 2034
371
371
6.9% senior debentures due 2028
28
28
6.92% senior debenture due 2028
392
392
Separate accounts
504
486
Total liabilities
10,414
9,917
391
389
Paid-in capital
1,015
969
Retained earnings
2,786
2,088
3,379
3,284
(763)
(644)
Total shareholders' equity
6,808
6,086
Total liabilities and shareholders' equity
$
17,222 $
16,003
SHAREHOLDERS' EQUITY
LIABILITIES
Treasury stock at cost (2006???23 million shares, 2005???20 million shares)
Accumulated other comprehensive income
Common stock, par value-$2 per share; authorized: 2006-500 million shares, 2005-
500 million shares; issued: 2006-196 million shares, 2005-194 million shares
(Dollars in millions except per share data)
Investments
Land, building and equipment, net, for company use (accumulated depreciation:
2006???$261; 2005???$232)
Cincinnati Financial Corporation
Consolidated Balance Sheets

Page 12
12
Three months ended December 31,
2006
2005
2006
2005
(unaudited)
(unaudited)
REVENUES
Property casualty
$
802 $
775 $
3,163 $
3,058
Life
31
28
115
106
Investment income, net of expenses
145
136
570
526
Realized investment gains and losses
12
23
684
61
Other income
5
5
18
16
Total revenues
995
967
4,550
3,767
Insurance losses and policyholder benefits
532
442
2,128
1,911
Commissions
153
151
630
627
Other operating expenses
100
76
354
302
Taxes, licenses and fees
19
19
77
72
Increase in deferred policy acquisition costs
5
5
(21)
(19)
Interest expense
14
13
53
51
Total benefits and expenses
823
706
3,221
2,944
INCOME BEFORE INCOME TAXES
172
261
1,329
823
Current
41
61
404
188
Deferred
1
17
(5)
33
Total provision for income taxes
42
78
399
221
NET INCOME
$
130 $
183 $
930 $
602
Net income???basic
$
0.75 $
1.04 $
5.36 $
3.44
Net income???diluted
$
0.75 $
1.03 $
5.30 $
3.40
Twelve months ended December 31,
PROVISION (BENEFIT) FOR INCOME TAXES
PER COMMON SHARE
BENEFITS AND EXPENSES
(In millions except per share data)
Earned premiums
Cincinnati Financial Corporation
Consolidated Statements of Income
Since 1996, Cincinnati Financial has disclosed the estimated impact of stock options on net income and earnings per share in a Note to the
Financial Statements. For the fourth-quarter and year ended December 31, 2005, diluted net income would have been reduced by
approximately 2 cents and 8 cents per share, if option expense, calculated using the binomial option-pricing model, were included as
an expense.

Page 13
13
Inside Cincinnati
Professional Development
On February 2, 2007, Gregory T. Bier, CPA (retired), who joined the Cincinnati Financial Corporation board of directors in
November 2006, was additionally appointed to boards of all insurance subsidiaries.
The board of Cincinnati Financial Corporation announced that the boards of its subsidiary companies appointed directors,
officers and counsel.
The Cincinnati Insurance Company
The Cincinnati Casualty Company
The Cincinnati Indemnity Company
Michael R. Abrams, Vice President ??? Investments
W. Dane Donham, AIM, Vice President ??? Commercial Lines
David T. Groff, CPCU, FCAS, Vice President ??? Staff
Underwriting
Robyn C. Muhlberg, Vice President ??? Information Technology
Ronald L. Robinson, Vice President ??? Field Claims
Michael B. Wedig, CPA, Vice President ??? Corporate
Accounting
Jack Morgan, CFE, Assistant Vice President ??? Special
Investigations
Martin D. Skidmore, Assistant Vice President ??? Headquarters
Claims
Douglas W. Stang, FCAS, MAAA, Assistant Vice President ???
Staff Underwriting
James E. Streicher, CPCU, AIM, ARe, Assistant Vice
President ??? Personal Lines
William H. Thomas, AIM, CPCU, Assistant Vice President ???
Commercial Lines
Anthony W. Dunn, CPA, CPCU, Secretary ??? Internal Audit
David F. Hartkemeier, Secretary ??? Bond & Executive Risk
Hollis A. Jones, AIM, Secretary ??? Investments
Michael W. Klenk, Secretary ??? Data Entry
Doris J. Kuhling, CPCU, AIM, Secretary ??? Headquarters
Claims
Timothy D. Morris, CPCU, APA, Secretary ??? Premium Audit
Beth A. Scalf, Secretary ??? Corporate Accounting
Michael J. Donges, CPCU, Assistant Secretary ???
Web Content Management
Derek J. Rice, AIM, Assistant Secretary ??? Education &
Training
Michael S. Stumpfl, ARM, CSP, Assistant Secretary ??? Loss
Control
Geraldine Brown, Assistant Treasurer ??? Agency Accounting
Bernard F. Kistler, CPCU, Associate Counsel
Alan E. Mazur, Associate Counsel
The Cincinnati Life Insurance Company
Michael R. Abrams*
Robyn C. Muhlberg*
Michael B. Wedig*
Anthony W. Dunn*
Hollis A. Jones*
Roger A. Brown, FSA, MAAA, Assistant Secretary ???
Actuarial
Bernard F. Kistler*
Alan E. Mazur*
*Title as listed above
CinFin Capital Management Company
Hollis A. Jones*
*Title as listed above
Since the November 28, 2006 Letter to Shareholders, staff members merited promotions:
Matt Acevedo, AIC, AIM ??? Field Claims Manager
Linda Adams, AIM, AIS, APA, ARM, AU, CPCU ???
Underwriting Superintendent
Gifty Addai, CPCU ??? Underwriting Specialist
Matthew Addington ??? Senior Underwriter
Todd Allgeyer ??? Senior Underwriter
Debi Baker ??? Director, Storage
Michael Baker ??? Senior Systems Analyst
Doug Bauer ??? Field Claims Superintendent
Bill Becker IV, AIC ??? Field Claims Superintendent
Chris Beckman, CPCU ??? Underwriting Specialist
Sangita Bone ??? Senior Project Analyst, Information
Technology
Clyde Brehm ??? Manager, Information Security
Rick Bridges, AIC ??? Associate Claims Superintendent
Holly Brobst, ARM, CPCU ??? Underwriting Superintendent
Edy Brown ??? Senior Underwriter
Jim Brown ??? Superintendent, Regulatory & Consumer
Relations
Jim Brown, CPCU ??? Associate Claims Superintendent
Tom Brun ??? Senior Machinery & Equipment Specialist
Matt Burns, API ??? Underwriting Superintendent
Tom Buschelmann ??? Manager, Corporate Accounting
Melissa Butler, API ??? Senior Filings Specialist
George Caffey ??? Field Claims Superintendent
Kelly Chasteen ??? Director, Corporate Accounting
Robert Chasteen ??? System Analyst
Rebecca Compton ??? Senior Programmer
Julian Deese ??? Underwriting Superintendent
Jill Dicke, AIC, AIM ??? Claims Superintendent
Jerry DiClaudio ??? Senior Claims Specialist
Stephanie DiLonardo, API ??? Chief Underwriting Specialist
Locke Doty, AIC ??? Senior Claims Representative
Barb Drook, CPCU ??? Senior Regional Director
Candace Edmonston ??? Group Manager, Information
Technology
Erin Engelkamp ??? Underwriting Specialist
Jack Farmer, AIC, SCLA ??? Senior Claims Specialist
Alan Ferree ??? Senior Claims Representative

Page 14
14
Diane Fluegeman, APA, CPCU, PMP ??? Division Manager,
Information Technology
Wayne Gammon, AIC ??? Senior Claims Specialist
Debora Glover, AIC ??? Senior Claims Representative
Paul Goossens ??? Senior Claims Representative
Kevin Green ??? Supervisor, Special Investigations
Steve Gregov ??? Regional Director
Russ Hall ??? Underwriting Manager
Steve Harbert ??? Field Claims Superintendent
Jeff Hemphill, AIC ??? Underwriting Specialist
David Henry, AIC ??? Senior Claims Specialist
Joanna Hensley ??? Chief Underwriting Specialist
Gretchen Herzig ??? Senior Claims Specialist
Brian Hetterich ??? Manager, Commissions
Lou Hille, AIC ??? Senior Claims Representative
Terri Holland ??? Senior Systems Analyst
Jason Hoog, AIT ??? Specialist, Information Technology
Robyn Jacobs ??? Manager, Imaging
Cory Jensen, AIC ??? Claims Specialist
Duane Johnson ??? Senior Claims Representative
Erica Jones, AIC ??? Claims Specialist
Tracey Jones, AIM, API ??? Underwriting Superintendent
Paul Jurkowski, AIC, ARM ??? Senior Claims Specialist
Padmaja Kandisetty ??? Senior Unix System Administrator
John Kay, AIC ??? Senior Claims Representative
Ike Kirch ??? Senior Underwriter
John Kozina, AIC ??? Senior Claims Representative
Tony Layman, AAI, AIM ??? Senior Underwriting Manager
Ed Lewis, AIM, CPCU, SCLA ??? Senior Loss Control
Consultant
Tammy Loss ??? Senior Claims Representative
Jill Malay ??? Underwriting Specialist
Regina Maringer ??? Underwriting Superintendent
Teresa McAllister, SCLA ??? Senior Claims Representative
Sharon McDonald ??? Senior Field Auditor
Jim McGee II ??? Senior Machinery & Equipment
Representative
Christopher Meece ??? Senior Underwriter
Robert Meyer ??? System Engineer
Mike Miller ??? Machinery & Equipment Specialist
Wayne Moyer, CPCU ??? Senior Claims Specialist
Michele Murphy ??? Senior Requirements Analyst
David Murphy, AIT ??? Specialist, Information Technology
Tracie Murray, AIC ??? Claims Specialist
Susan Necessary, AIS, CPIW ??? Senior Underwriter
Rick Nola, ARM, CIC, CPCU ??? Sales Field Director
David Nutt, AIM ??? Senior Filings Specialist
Andrew Oligny, AIC ??? Senior Claims Representative
Ryan Osborn ??? Senior Group Manager, Information
Technology
Rebecca Overholser, AIC ??? Claims Specialist
Nancy Pashley ??? Field Claims Superintendent
Tony Pavelka, AIC, AIM ??? Field Claims Manager
Rob Pearman, Jr. ??? Claims Specialist
Ray Price ??? Systems Analyst
Cindy Prising ??? Senior Underwriter
Damen Proffitt ??? Senior Programmer
Tom Radeke ??? Regional Director
Jeff Roberts, AIM, API, CPCU ??? Senior Underwriting
Manager
Ann Roda ??? Senior Underwriter
Bob Rook, AU ??? Underwriting Superintendent
Jeffery Rook, AIT ??? Programmer Analyst
Chad Russell, CPA, CPCU ??? Manager, Corporate Accounting
Doug Russum, AIC ??? Field Claims Superintendent
Barb Santel ??? Senior Analyst
Matt Sarvak ??? Senior Requirements Analyst
Barry Schulte ??? Business Analyst
Tracey Singer ??? Business Analyst
Dan Slaten, AIC, CPCU ??? Field Claims Superintendent
Jim Snyder ??? Claims Specialist
Brad Spicer, AIC, AIS ??? Associate Regional Manager
Gina Spradling, AIM ??? Underwriting Superintendent
Alice Stone ??? Director, Accounting & Agency
Services
Michael Strange ??? Network Administrator
Katie Stubblefield ??? Senior Underwriter
Bryan Sturdy ??? Senior Underwriter
Terri Sunderman ??? Senior Underwriter
Tim Sunderman, AIM, API, CPCU ??? Underwriting Specialist
Tore Swanson, AIM, SCLA ??? Associate Regional Manager
Carey Taylor ??? Chief Underwriting Specialist
Eric Trass ??? Senior Loss Control Consultant
Julie Trudel ??? Chief Underwriting Specialist
Helen Varela, AIC, AIS ??? Claims Specialist
Scott Wabnitz, AIT ??? Senior Analyst
Dave Walker, AIC, AIM, CPCU ??? Regional Field Claims
Manager
Brad Zimmerman, AIC ??? Claims Supervisor
A committee of peers recently granted quarterly Above and Beyond the Call (ABC) awards to Lori Avallone, Commercial
Central, and Melissa Butler, Staff Underwriting. The ABC Award recognizes exemplary productivity, service and quality.
We encourage and reward associates who continue their professional insurance education, earning credentials by meeting high
academic, ethical and length-of-experience standards. Several associates recently qualified for prestigious designations.
Congratulations to associates who completed a series of courses to earn the Chartered Property Casualty Underwriter (CPCU)
designation: Janice AbuBakr, Gifty Addai, Joe Ambrosiano, Tom Bier, Mitch Borton, Doug Brockway, Keith Colton, Mike
Czanik, Barb Drook, Tom Dushkewich, Richard Feldner, Diane Fluegeman, Byron Frick, Jeff Geyer, Julie Hampton, Steve
Holt, Mike King, Bernie Kistler, Jr., Marilyn Kreke, Mike Lane, Bill Larson, Craig Macke, Tracy Miller, Chris Monahan,
Charlene Naylor, Donna Offen, Paul Pettesch, Sandy Pohlman, Jody Rhude, Karl Runkle, Brad Sherman, Damian Stark,
Susanne Stewart, Jennifer West and Michael Wood; to associates who earned the Certified Insurance Counselor (CIC)
designation: LeAnn Gregory, Mike Herron, Kathy Lander and Robert Young; to associates who earned the Fellow Life
Management Institute (FLMI) designation: Paula Gentry, Kim Morris and Kathy Murphy; and to associates who earned the
Certified Safety Professional (CSP) designation: Mitch Carson and Celeste VanHoutte.

Page 15
15
The use of technology continues to enhance our traditional classroom training. We plan to offer eight Web conferences a month
for agency staff in 2007. These Web conferences provide timely and focused information without the need for travel. Feedback
has been overwhelmingly positive from the more than 3,800 Web conference attendees in 2006.
In January, training began in Missouri and Iowa on e-CLAS, our Commercial Lines processing system now issuing our
Businessowners Package policies and Dentist???s Package. Cincinnati associates travel to the field with a mobile lab ??? lap top
computers with wireless connections ??? to offer hands-on e-CLAS training. After the initial classroom session, agency staff
attend a follow-up Web conference 30 days later and can review online modules to cement their e-CLAS skills.
Financial Services
The company's two financial services subsidiaries continue to successfully leverage our insurance relationships and broaden our
offerings. As of December 31, 2006, CFC Investment Company, which offers equipment and vehicle leases and loans,
reported 2,897 accounts representing $108 million of contract receivables. CinFin Capital Management Company, which offers
asset management services, reported $960 million under management in 64 accounts.
Safe Harbor
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 2006 Form 10-K, Item 1A, Risk Factors, Page 20. Although we often review or update our forward-
looking statements when events warrant, we caution our readers that we undertake no obligation to do so.
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
??? Inaccurate estimates or assumptions used for critical accounting estimates
??? 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
??? 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:
??? Downgrade of the company???s financial strength ratings
??? Concerns that doing business with the company is too difficult or
??? Perceptions that the company???s level of service, particularly claims service, is no longer a distinguishing characteristic in the marketplace
??? Delays or inadequacies in the development, implementation, performance and benefits of technology projects and enhancements
??? Ability to obtain adequate reinsurance on acceptable terms, amount of reinsurance purchased, financial strength of reinsurers and the potential for
non-payment or delay in payment by reinsurers
??? Increased competition that could result in a significant reduction in the company???s premium growth rate
??? Underwriting and pricing methods adopted by competitors that could allow them to identify and flexibly price risks, which could decrease our
competitive advantages
??? Actions of insurance departments, state attorneys general or other regulatory agencies that:
??? Restrict our ability to exit or reduce writings of unprofitable coverages or lines of business
??? Place the insurance industry under greater regulatory scrutiny or result in new statutes, rules and regulations
??? Increase our expenses
??? 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
??? Limit our ability to set fair, adequate and reasonable rates
??? Place us at a disadvantage in the marketplace or
??? Restrict our ability to execute our business model, including the way we compensate agents
??? Sustained decline in overall stock market values negatively affecting the company???s equity portfolio and book value; in particular a sustained
decline in the market value of Fifth Third shares, a significant equity holding
??? Recession or other economic conditions or regulatory, accounting or tax changes resulting in lower demand for insurance products
??? Events that lead to a significant decline in the value of a particular security and impairment of the asset
??? 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
??? Adverse outcomes from litigation or administrative proceedings
??? Investment activities or market value fluctuations that trigger restrictions applicable to the parent company under the Investment Company Act of
1940
??? Events, such as an avian flu epidemic, natural catastrophe, terrorism or construction delays, 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, 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 recent measures affecting corporate financial reporting and governance. The ultimate changes and eventual
effects, if any, of these initiatives are uncertain.

Page 16
Cincinnati Financial Corporation offers property and casualty insurance, its main business, through The Cincinnati Insurance
Company, The Cincinnati Indemnity Company and The Cincinnati Casualty Company. The Cincinnati Life Insurance Company
markets life and disability income insurance and annuities. CFC Investment Company offers commercial leasing and financing
services. CinFin Capital Management Company provides asset management services to institutions, corporations and individuals.
For additional information about the company, please visit www.cinfin.com.
For Further Information:
Shareholder Contact: Jerry L. Litton
513-870-2639
Investor Contact: Heather J. Wietzel
513-870-2768
Media Contact: Joan O. Shevchik
513-603-5323
www.cinfin.com