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EXHIBIT 11
CINCINNATI FINANCIAL CORPORATION
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
(000's omitted except per share data)
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<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
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2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Basic earnings per share:
Net income ................................... $159,634 $207,777 $ 5,577 $ 57,046
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Average shares outstanding ................... 160,924 164,542 159,732 162,638
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Net income per common share .................. $ .99 $ 1.26 $ .03 $ .35
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Diluted earnings per share:
Net income ................................... $159,634 $207,777 $ 5,577 $ 57,046
Interest on convertible debentures--
net of tax.................................. 946 1,239 -0- 381
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Net income for per share calculation
(diluted)................................... $160,580 $209,016 $ 5,577 $ 57,427
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Average shares outstanding ................... 160,924 164,542 159,732 162,638
Effective of dilutive securities:
5.5% convertible senior debentures .......... 2,072 2,889 -0- 2,889
Stock options ............................... 1,162 1,626 1,828 1,705
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Total dilutive shares ........................ 164,158 169,057 161,560 167,232
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Net income per common share--diluted ......... $ .98 $ 1.24 $ .03 $ .34
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ANTI-DILUTIVE SECURITIES - According to the provisions of SFAS No. 128 "Earnings
Per Share", the Company's 5.5% convertible senior debentures due 2002,
representing approximately 2,072 shares in conversion, were not included in the
computation of diluted earnings per share for the three months ended September
30, 2000 because to do so would be antidilutive.
Options to purchase approximately 970 and 904 shares of the Company, with
exercise prices ranging from $37.88 to $45.37 per share were outstanding at both
September 30, 2000 and 1999, but were not included in the computation of diluted
earnings per share for the three-month periods ended September 30, 2000 and 1999
since inclusion of these options would have anti-dilutive effects as the
options' exercise prices exceeded the respective average market prices of the
Company's shares. Options to purchase 1,158 and 995 shares of the Company, with
exercise prices ranging from $34.50 to $45.37 and $36.63 to $45.37 per share,
were outstanding at September 30, 2000 and 1999, respectively and not included
in the nine-month period computations of diluted earnings per share due to
anti-dilutive effects.
