Cincinnati Financial Notes $25 Million in CAT Losses from Charley’s Destruction

August 23, 2004

Cincinnati Financial Corp. announced a preliminary estimate of
approximately $25 million for pretax catastrophe losses resulting from
Hurricane Charley.

This figure represents the estimated losses from the fewer than 1,000 claims received through Aug. 21, as well as claims that have not
yet been reported. The hurricane affected The Cincinnati Insurance Companies’ policyholders in Florida, North Carolina and South Carolina. As previously announced, storms in 10 states in early July also caused third-quarter catastrophe losses, now estimated at $12 million, net of reinsurance.

Chairman and CEO John Schiff, Jr., commented, “Our heartfelt sympathy goes out to the people in all of the communities affected by this devastating storm. Experienced Cincinnati claims representatives have been in Florida since Saturday, August 14, working with our local staff to make certain that policyholders receive immediate

Schiff noted, “Through the first half of the year, catastrophe losses
totaled $47 million, contributing 3.3 percentage points to the GAAP combined ratio of 89.5 percent and reducing earnings per share by 18 cents. Our target for the full-year 2004 GAAP combined ratio remains at 92 percent (91.5 percent on a statutory basis). This target anticipates that full-year catastrophe losses will be approximately $90 million to $100 million, contributing in the range of 3.0 to 3.5 percentage points to the full-year combined ratio. Hurricane Charley has moved us closer to that level, and we will review our target if further severe weather occurs or as adjustments are needed to this
early estimate.”

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