Cincinnati Financial Corporation

2008 Fourth-quarter and Full-year Letter to Shareholders

Offering agent education differentiates Cincinnati from other carriers. We know that many agencies cannot devote the time or money to expensive training seminars for their staff. To address this need, Cincinnati's Learning & Development department developed quick-start curricula that outline a plan for the first six to 12 months on the job, including a blend of online and classroom courses that allow immediate access to insurance technical training. Agents can also participate in a wide variety of Web conferences from their desks.

We encourage and reward associates who continue their professional insurance education, earning credentials by meeting high academic, ethical and length-of-experience standards. Congratulations to the following associates who completed a series of courses to earn a designation: Bob Cleveland, Brett Starr, Todd Wing and Matt Zimmerman, Chartered Property Casualty Underwriter (CPCU); and Debbie Jenkins, Certified Insurance Counselor (CIC).

The ABC Award recognizes exemplary productivity, service and quality in exceptional associates. The ABC Award committee recently granted the quarterly Above and Beyond the Call (ABC) award to Jessica Day, AIS, senior P&C compliance specialist, Staff Underwriting.

In January, Cincinnati associates received the Award of Excellence for the most productive blood drives from America's Blood Center, the nation's largest group of nonprofit blood donation centers. Hoxworth Blood Center nominated Cincinnati associates because of the ongoing commitment to bi-annual blood drives, as well as the response received to additional drives targeted at type O donors to help the blood supply.

CFC Investment Company, which offers equipment and vehicle leases and loans, reported 2,197 accounts representing $71 million in net receivables as of December 31, 2008.

Over the course of 2008, The Cincinnati Specialty Underwriters Insurance Company and our wholly owned brokerage, CSU Producer Resources Inc., began marketing excess and surplus lines general liability insurance in 33 of our 35 active states. Cincinnati Specialty Underwriters also offers the commercial property line of business in 21 states, and miscellaneous professional/E&O in all 33 active states. We will continue to introduce new lines and classes of business throughout 2009, including additional classes of miscellaneous professional and excess casualty. Availability of CSU's new offerings has enhanced your company's ability to write new standard market property casualty business, as we work with agents to round out accounts that require both admitted and nonadmitted market solutions.

Our asset management services subsidiary, CinFin Capital Management Company, will cease operations on February 28, 2009, as our focus sharpens on insurance. During the recent downturn, this business performed satisfactorily relative to the appropriate benchmarks, and it was profitable over its 10 years in operation. We determined that sufficient future growth through agency referrals or other routes would have required a substantial increase in resources even as we are ramping up insurance initiatives. Many of our agencies did not see referrals for its services within the scope of their offering to their clients.