News Release

CINCINNATI, May 14, 2003 /PRNewswire-FirstCall via COMTEX/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today announced a preliminary estimate of approximately $48 million for second-quarter pre-tax catastrophe losses resulting from severe weather through May 11. The storm losses, which affected policyholders of The Cincinnati Insurance Companies, are expected to add a total of approximately 7.5 percentage points to the second-quarter property casualty combined ratio. The expected impact on after-tax earnings per share for the second quarter would be approximately 19 cents.

The preliminary second-quarter estimate includes an updated estimate of approximately $13 million for April storm losses, which were previously estimated at $9 million, and an initial estimate of $35 million, net of reinsurance, for storm damage on May 2-11. Cincinnati's policyholders across 16 Midwestern and mid-Atlantic states have reported more than 2,800 claims as a result of severe weather over these 10 days.

The $48 million total for storm losses through May 11 compares with reported pre-tax catastrophe losses for the full second quarter of 2002 of $47 million, which added 8.1 percentage points to the combined ratio and reduced after-tax earnings per share by 19 cents. For the comparable 2001 period, catastrophe losses were $35 million, adding 6.9 percentage points to the combined ratio and reducing earnings per share by 14 cents.

Chairman and Chief Executive Officer John J. Schiff, Jr., CPCU, commented, "Most regrettably, this year's storms have taken many lives. All of us at The Cincinnati Insurance Companies extend our deepest sympathy. We assure people in all of the affected communities that we are working hard for your recovery from property losses. We have dispatched teams of experienced Cincinnati claims representatives to assist the local staff in areas with a high concentration of reported claims, notably in Paducah, Kentucky; Nashville- Murfreesboro, Tennessee; and Columbus, Ohio. Our field claims staff and independent agency representatives in each community shine at times like these, demonstrating our person-to-person approach and the true value of Cincinnati's insurance coverage and service."

Schiff noted that "heavy property losses due to tornadoes and hailstorms are typical this time of year. Our target for the full-year combined ratio is 99 percent or below on a GAAP basis, or 98.5 percent or below on a statutory basis," he said. "This target assumes that full-year storm losses will be approximately $75 million or in the range of 3 percentage points, with higher levels in the second and third quarters."

Schiff continued, "With more than six months to go, we will re-evaluate this target as further severe weather occurs or as adjustments are needed to these early 'ballpark' estimates. Policyholders often require a large window of time to discover and report hail damage. On the positive side, results for the first six months of 2003 will include a very strong first quarter, with a 95.1 percent GAAP combined ratio and only $3 million of catastrophe losses. Moreover, we expect to see continuing improvement in our non-catastrophe underwriting results."

Cincinnati Financial plans to report final second-quarter results on Tuesday, July 29. A conference call to discuss the results will be held at 2:30 p.m. EDT on that day. Details regarding the Internet broadcast of the conference call will be posted at www.cinfin.com on the Investors page.

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, disability income and long-term care insurance and annuities. CFC Investment Company supports the insurance subsidiaries and their independent agent representatives through commercial leasing and financing activities. CinFin Capital Management Company provides asset management services to institutions, corporations and individuals.

This is a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995. Certain forward-looking statements contained herein involve potential risks and uncertainties. The company's future results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to: unusually high levels of catastrophe losses due to changes in weather patterns or other causes; increased frequency and/or severity of claims; environmental events or changes; insurance regulatory actions, legislation or court decisions that increase expenses or place the company at a disadvantage in the marketplace; adverse outcomes from litigation or administrative proceedings; recession or other economic conditions resulting in lower demand for insurance products; sustained decline in overall stock market values negatively affecting the company's equity portfolio, in particular a sustained decline in market value of Fifth Third Bancorp shares; events that lead to a significant decline in the market value of a particular security and impairment of the asset; delays in the development, implementation and benefits of technology enhancements; and decreased ability to generate growth in investment income.

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 impacting corporate financial reporting and governance. The ultimate changes and eventual effects, if any, of these initiatives are uncertain.

SOURCE Cincinnati Financial Corporation

Kenneth W. Stecher, Chief Financial Officer of Cincinnati
Financial Corporation, +1-513-603-5236

http://www.cinfin.com