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The
Cincinnati Insurance Company ■
The Cincinnati Indemnity Company
The
Cincinnati Casualty Company ■
The Cincinnati Specialty Underwriters Insurance Company
The
Cincinnati Life Insurance Company ■
CFC Investment Company ■
CSU Producer Resources Inc. |
Investor Contact:
Dennis E. McDaniel, 513-870-2768
CINF-IR@cinfin.com
Media Contact:
Joan O. Shevchik, 513-603-5323
Media_Inquiries@cinfin.com
Cincinnati
Financial Corporation Declares Regular Quarterly Cash Dividend
Cincinnati, November 15, 2013
– Cincinnati Financial Corporation (Nasdaq: CINF) announced that, at today’s regular meeting, the board of directors
declared a 42-cents-per-share regular quarterly cash dividend, payable January 15, 2014, to shareholders of record as
of December 18, 2013.
Steven J. Johnston, president and
chief executive officer, commented, “The dividend just declared matches the one paid in October, which marked the 53rd
consecutive year that our annual cash dividend increased. Dividends are our primary method of returning capital to shareholders.
Maintaining the dividend indicates our board of directors’ confidence in management’s ability to produce solid financial
results by executing our strategic and operational plans. The company’s strong capital continues to support our dividend
as well as profitable growth of our insurance business, helping to increase shareholder value over time.”
Cincinnati
Financial Corporation offers business, home and auto insurance, our main business, through The Cincinnati Insurance Company
and its two standard market property casualty companies. The same local independent insurance agencies that market those policies
may offer products of our other subsidiaries, including life and disability income insurance, fixed annuities and surplus
lines property and casualty insurance. For additional information about the company, please visit www.cinfin.com. |
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Mailing
Address: |
Street
Address: |
P.O.
Box 145496 |
6200
South Gilmore Road |
Cincinnati,
Ohio 45250-5496 |
Fairfield,
Ohio 45014-5141 |
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Safe Harbor Statement
This is our “Safe Harbor”
statement under the Private Securities Litigation Reform Act of 1995. Our business is subject to certain risks and uncertainties
that may cause actual results to differ materially from those suggested by the forward-looking statements in this report. Some
of those risks and uncertainties are discussed in our 2012 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 26.
Factors that could cause or contribute
to such differences include, but are not limited to:
| · | Unusually
high
levels
of
catastrophe
losses
due
to
risk concentrations,
changes
in
weather
patterns,
environmental
events,
terrorism
incidents
or
other causes |
| · | Increased
frequency
and/or
severity
of
claims |
| · | Inadequate
estimates
or
assumptions
used
for
critical
accounting
estimates |
| · | Recession
or
other
economic
conditions
resulting
in
lower
demand
for
insurance
products
or
increased
payment delinquencies |
| · | Declines
in
overall
stock
market
values
negatively
affecting
the
company’s
equity
portfolio
and
book value |
| · | Events
resulting
in
capital
market
or
credit
market
uncertainty,
followed
by
prolonged
periods
of
economic
instability
or
recession,
that
lead to: |
| o | Significant
or
prolonged
decline
in
the
value
of
a
particular
security
or
group
of
securities
and
impairment
of
the
asset(s) |
| o | Significant
decline
in
investment
income
due
to
reduced
or
eliminated
dividend
payouts
from
a
particular
security
or
group
of
securities |
| o | Significant
rise
in
losses
from
surety
and
director
and
officer
policies
written
for
financial institutions
or
other
insured
entities |
| · | Prolonged
low
interest
rate
environment
or
other
factors
that
limit
the
company’s
ability
to
generate
growth
in
investment
income
or
interest
rate
fluctuations
that
result
in
declining
values
of
fixed-maturity
investments,
including
declines
in
accounts
in
which
we
hold
bank-owned
life
insurance
contract assets |
| · | Increased
competition
that
could
result
in
a
significant
reduction
in
the
company’s
premium
volume |
| · | Delays
or
performance
inadequacies
from
ongoing
development
and
implementation
of
underwriting
and
pricing methods
or
technology
projects
and
enhancements
expected
to
increase
our
pricing
accuracy,
underwriting
profit
and
competitiveness |
| · | Changing
consumer
insurance-buying
habits
and
consolidation
of
independent
insurance
agencies
that
could
alter
our
competitive
advantages |
| · | Inability
to
obtain
adequate
reinsurance
on
acceptable
terms,
amount
of
reinsurance
purchased,
financial
strength
of
reinsurers
and
the
potential
for
nonpayment
or
delay
in
payment
by
reinsurers |
| · | Difficulties
with
technology
or
data
security
breaches,
including
cyber
attacks,
that
could
negatively
affect
our
ability
to
conduct
business and
our
relationships
with
agents,
policyholders
and
others |
| · | Inability
to
defer
policy
acquisition
costs
for
any
business
segment
if
pricing
and
loss
trends
would
lead
management
to conclude
that
segment
could
not
achieve
sustainable profitability |
| · | Events
or
conditions
that
could
weaken
or
harm
the
company’s
relationships
with
its
independent
agencies
and
hamper
opportunities
to
add
new
agencies,
resulting
in
limitations
on
the
company’s
opportunities
for
growth,
such as: |
| o | Downgrades
of
the
company’s
financial
strength ratings |
| o | Concerns
that
doing
business
with
the
company
is
too difficult |
| o | Perceptions
that
the
company’s
level
of
service,
particularly
claims
service,
is
no
longer
a
distinguishing
characteristic
in
the
marketplace |
| · | Actions
of
insurance
departments,
state
attorneys
general
or
other
regulatory
agencies,
including
a
change
to
a
federal
system
of
regulation
from
a
state-based
system,
that: |
| o | Impose
new
obligations
on
us
that
increase
our
expenses
or
change
the
assumptions
underlying
our
critical
accounting
estimates |
| o | Place
the
insurance
industry
under
greater
regulatory
scrutiny
or
result
in
new
statutes,
rules
and regulations |
| o | Restrict
our
ability
to
exit
or
reduce
writings
of
unprofitable
coverages
or
lines
of
business |
| o | Add
assessments
for
guaranty
funds,
other
insurance
related
assessments
or
mandatory
reinsurance
arrangements;
or
that
impair
our
ability
to
recover
such
assessments
through
future
surcharges
or
other
rate changes |
| o | Increase
our
provision
for
federal
income
taxes
due
to
changes
in
tax
law |
| o | Increase
our
other
expenses |
| o | Limit
our
ability
to
set
fair,
adequate
and
reasonable rates |
| o | Place
us
at
a
disadvantage
in
the
marketplace |
| o | Restrict
our
ability
to
execute
our
business
model,
including
the
way
we
compensate
agents |
| o | Adverse
outcomes
from
litigation
or
administrative proceedings |
| o | Events
or
actions,
including
unauthorized
intentional
circumvention
of
controls,
that
reduce
the
company’s
future
ability
to
maintain
effective
internal
control
over
financial
reporting
under
the
Sarbanes-Oxley
Act
of 2002 |
| o | Unforeseen
departure
of
certain
executive
officers
or
other
key
employees
due
to
retirement,
health
or
other causes
that
could
interrupt
progress
toward
important
strategic
goals
or
diminish
the
effectiveness
of
certain
longstanding
relationships
with
insurance
agents
and
others |
| o | Events,
such
as
an
epidemic,
natural
catastrophe
or
terrorism,
that
could
hamper
our
ability
to
assemble
our
workforce
at
our
headquarters
location |
Further, the company’s insurance
businesses are subject to the effects of changing social, economic and regulatory environments. Public and regulatory initiatives
have included efforts to adversely influence and restrict premium rates, restrict the ability to cancel policies, impose underwriting
standards and expand overall regulation. The company also is subject to public and regulatory initiatives that can affect the
market value for its common stock, such as measures affecting corporate financial reporting and governance. The ultimate
changes and eventual effects, if any, of these initiatives are uncertain.
* * *