News Release

• This calculation reflects Cincinnati Financial Corporation's comprehensive net income. It recognizes the company's equity focus and the resulting appreciation/depreciation not reflected in traditional return calculations that consider income statement-based earnings only.

Chairman and Chief Executive Officer John J. Schiff, Jr., CPCU, commented, "The positive trends of last year's fourth quarter carried through the first three months of this year. Top-line growth continued with improvement on the commercial insurance side. Bottom line profits were also healthy, as we matched 1999's improved personal lines underwriting results and achieved an overall net underwriting gain of $5.1 million. In addition, pre-tax investment income exceeded $100 million for the first time in any single quarter."

• Ratio presented on a post-dividend basis due to growth in the level of policyholder dividends.

The Corporation's property casualty insurance affiliates -- The Cincinnati Insurance Company, The Cincinnati Indemnity Company and The Cincinnati Casualty Company -- had first-quarter net written premiums of $432.1 million, up 9.1 percent or $36.0 million over the comparable 1999 period.

Schiff noted, "Our growth continues well above forecasted industry levels of approximately 3 percent for the year 2000. It included $60.9 million of direct new business from our agents, which exceeded last year's first-quarter new business total by $13.6 million, or 28.7 percent. We're seeing broader marketplace acceptance of firmer pricing on new and renewal commercial business, and we're getting regulatory approval for small rate increases in selected areas for homeowner policies. We continue to re-underwrite less profitable auto business from targeted agencies and have not substantially changed personal auto rates."

"We also grow by increasing our local field marketing staff, allowing more time for representatives to visit agencies, accompany agents on calls and earn more business. We've added a sixth representative in Pennsylvania and we're selecting a representative for a sixth Michigan territory that will split off during the third quarter. And this week we'll launch operations in Utah by appointing a large Salt Lake City agency," Schiff added.

The statutory combined loss and expense ratio after policyholder dividends was 98.8 percent versus 106.0 percent for the first quarter of 1999. Catastrophe losses accounted for 1.9 points of the 2000 ratio versus 5.9 points in 1999. The higher expense ratio, 28.8 percent versus 27.9 percent, reflects higher commissions paid to agents for more profitable business and costs to relocate several departments to the newly expanded headquarters building. Workers' compensation policyholder dividends included in the first- quarter combined ratio accounted for 1.1 points in 2000 and 0.3 points in 1999.

First-quarter net written premiums for commercial insurance rose 11.3 percent to $293.0 million with a 57.9 percent pure loss ratio. Net written premiums for personal insurance rose 4.7 percent to $139.1 million with a 62.1 percent pure loss ratio. "We consistently try to balance growth and profitability," Schiff said, "and have consistently achieved that balance by working on being skilled underwriters, instead of by reducing claim reserves for prior accident years to make current periods look better. Our goal is to give a true picture of current profitability, and our conservative reserving practices protect policyholders."

The Cincinnati Life Insurance Company's total net written premiums for the first quarter were $26.3 million, including 7.3 percent growth of life insurance premiums to $21.5 million.

Total life insurance applications received in the first quarter increased by 65 percent. Ordinary life applications increased by 109 percent and worksite applications by 4 percent. Cincinnati Life President David H. Popplewell, FALU, LLIF, observed, "We've been processing the unusual surge of ordinary life applications for policyholders who purchased term insurance before the 'Triple X' regulations took effect. We expect the growth rate for new applications to normalize in the five to ten percent range.

"Cincinnati Life introduced LifeHorizons Ten-Year Guaranteed Term insurance during the first quarter. Additional new products ready to roll out by mid-year include our Single Premium Deferred Annuity, Flexible Premium Deferred Annuity and Survivor Universal Life. To provide increased support to agents and accommodate growth, we subdivided existing marketing territories in Michigan and in Georgia/Alabama, adding field representatives to these newly created territories during the first quarter."

Investment Operations

Including $5.4 million in interest income from a $302.9 million premium for a bank-owned life insurance policy booked at the end of 1999, pre-tax investment income rose to $106.3 million for the first quarter of 2000. Excluding that interest income, pre-tax investment income rose 5.4 percent to $100.9 million versus a comparable $95.8 million in the first quarter of 1999.

Chief Investment Officer James G. Miller noted, "On the equity side, we view the recent stock market decline as an opportunity to increase investments in our core holdings and take advantage of higher dividend yields. We'll maintain our consistent investment style by selecting high-quality companies that are poised to continue profitable growth over the long term. So far this year, 14 of 46 common stocks in the investment portfolio have raised their dividends, increasing annualized investment income by $4.2 million. And between March 31 and April 20, 2000, our top ten holdings, accounting for 67.6 percent of the common stock portfolio's market value, appreciated $85.3 million. We expect these well-managed companies with solid earnings to fully recoup and surpass their year-end levels as value investing returns to favor."

Miller continued, "We repurchased 1.6 million shares of CINF common stock during the first quarter, at a total cost of $49.7 million and a per-share cost averaging $30.15. This brings the total shares acquired since February of 1999 to 7.4 million, with 9.6 million shares remaining authorized for repurchase. We did not buy back any of our own shares in late March and early April-the recent increase in CINF share price is due entirely to investor demand."

Balance Sheet Strength

At March 31, 2000, total assets were $10.564 billion versus $11.380 billion at year-end 1999. Shareholders' equity was $4.803 billion, or a book value of $29.87 per share, versus $5.421 billion, or a book value of $33.46 per share, at December 31, 1999.

Schiff concluded, "We have the financial strength to stay on track through all types of cycles and economic periods, continuing to enhance long-term value. When help comes along in the form of firmer insurance pricing or higher investment yields, we're ready to make the most of the opportunity precisely because we never tried to time our efforts.

"Every day, our associates in marketing, underwriting, claims and staff departments work to cement stable, enduring relationships with independent agents, policyholders and investors. People trust us to treat them as we would want to be treated and they link their fortunes closely to ours. Cincinnati Financial's growth and profitability horizons are as boundless as our ability to inspire and sustain those relationships."

Cincinnati Financial Corporation offers property and casualty insurance, our main business, through The Cincinnati Insurance Company, The Cincinnati Indemnity Company and The Cincinnati Casualty Company. The Cincinnati Life Insurance Company markets life, long term care, health and accident insurance. CFC Investment Company supports the insurance subsidiaries and their independent agent representatives through leasing and financing activities. CinFin Capital Management provides investment management services to institutions, corporations and individuals. For additional information, please visit our Web site at www.cinfin.com . SOURCE Cincinnati Financial Corporation

CONTACT: Kenneth W. Stecher, Senior Vice President, Secretary & Treasurer of Cincinnati Financial Corporation, 513-870-2639/