"Our 94.7 percent combined ratio was the best it has been in more than 10 years," Mr. Schiff said.

The insurer's statutory net written premiums for the property-casualty insurance units rose 14.2 percent to $698 million for the fourth quarter, up from $612 million reported for the 2002 fourth quarter. For the full-year 2003, statutory net written premiums on an adjusted basis went up 11.8 percent to $2.789 billion from $2.496 billion during 2002, the company reported.

Cincinnati Financial's overall underwriting profit for the 2003 fourth quarter was $75 million, compared with $32 million in underwriting profit reported during the same quarter in 2002. For the full year, the insurer's p-c underwriting profit rose to $140 million, from $7 million for 2002.

The insurer's fourth-quarter earnings also were helped by the release of $38 million, pretax, in previously established uninsured and underinsured motorists (UM/UIM) reserves, which added $25 million to the fourth-quarter net income.

Cincinnati Financial said that up to $37 million in additional case reserves may be released in coming quarters as the company continues to review pending claims.

Looking at individual lines, statutory net written premiums for the commercial lines rose 14.7 percent to $507 million for the fourth quarter, up from $443 million during the 2002 fourth quarter. Full-year commercial lines statutory net written premiums rose 11.9 percent to $2 billion.

In personal lines, statutory net written premiums rose 12.8 percent to $191 million for the quarter, from $169 million reported during last year's fourth quarter. Full-year personal lines statutory net written premiums rose 11.4 percent to $780 million.

"The combined ratio for the full year marked our best commercial lines results in many years," Mr. Schiff said. "We believe market conditions will allow us to further improve on that mark in 2004 while continuing to achieve satisfactory growth."

Mr. Schiff also observed that while there may be "striking differences in market conditions" from one area to another, disciplined underwriting remains the norm, not the exception, in most markets. "There is more competition for high-quality accounts, particularly from other regional carriers, but there seems to be little inclination to aggressively price average accounts," Mr. Schiff noted.

Based in Fairfield, Ohio, Cincinnati Financial is the parent company of Cincinnati Insurance, which includes Cincinnati Casualty and Cincinnati Indemnity. Through its subsidiaries, Cincinnati Financial sells commercial property, liability, auto, bond and fire insurance, and its personal lines include homeowners and liability products.