A.M. Best Affirms Ratings of The Cincinnati Insurance Companies and Cincinnati Financial Corporation.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A++ (Superior) and issuer credit ratings (ICR) of "aa+" for the property/casualty group, The Cincinnati Insurance Companies (CIC) and its the members. A.M. Best has also affirmed the ICR of "aa-" and the senior debt ratings of Cincinnati Financial Corporation (CINF) [NASDAQ:CINF]. Concurrently, A.M. Best has affirmed the FSR of A+ (Superior) and ICR of "aa-" for The Cincinnati Life Insurance Company. The outlook for all ratings is stable. All companies are domiciled in Ohio. (See below for a detailed list of the companies and ratings.)

The ratings for CIC reflect its superior risk-adjusted capitalization, very strong operating performance and its successful business position developed through building a network of independent agents to market CIC's commercial and personal policies in selected states. Despite challenges to achieve profitability in its homeowner line of business, CIC has experienced very strong overall underwriting results, driven by a favorable commercial lines experience as evidenced by its overall 2006 statutory combined ratio of 93.8% and a five-year averaged combined ratio of 92.7%.

The ratings also recognize the benefits of CINF's very strong financial flexibility, excellent interest coverage measures and modest financial leverage as debt-to-total capital as of December 31, 2006 was 11.0% and interest coverage was 15.1 times. Furthermore, CINF has significant financial resources to support liquidity throughout its organization.

Somewhat offsetting these rating strengths are CIC's investment and geographic risk concentrations. CIC maintains significant common stock leverage and investment risk within industry sectors and holdings, which exposes the statutory surplus of the group to potential equity market fluctuations. CIC's market profile also is somewhat geographically concentrated, as five states represent nearly half of the group's total writings. However, management has successfully targeted desired regions and largely avoided exposures in undesirable markets. The outlook reflects CIC's favorable capitalization and continued demonstration of good underwriting results, despite challenges in certain lines of business and increased competitive pressures.

The ratings of Cincinnati Life reflect its integral position as the life insurer within CINF, its adequate risk-adjusted capitalization and its continuing focus on growing its life insurance business. Partially offsetting these positive rating factors are Cincinnati Life's statutory net operating loss recorded in 2006, the first over the past five-year period, which is due primarily to an increasing level of Triple X reserves and its continuing high exposure to equities.

The FSR of A++ (Superior) and ICRs of "aa+" have been affirmed for The Cincinnati Insurance Companies and its following members:

* The Cincinnati Insurance Company

* The Cincinnati Indemnity Company

* The Cincinnati Casualty Company

The following debt ratings have been affirmed:

Cincinnati Financial Corporation--

--"aa-" on $28 million 6.90% senior unsecured debentures, due 2028

--"aa-" on $375 million 6.125% series B senior unsecured notes, due 2034

--"aa-" on $392 million 6.92% senior unsecured debentures, due 2028

The FSR of A+ (Superior) and ICR of "aa-" have been affirmed for The Cincinnati Life Insurance Company.

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.