CINCINNATI, April 29, 2019 /PRNewswire/ -- Cincinnati
Financial Corporation (Nasdaq: CINF) today announced that based on
preliminary voting results at the company's annual meeting on
April 27, 2019, shareholders elected
all directors for one-year terms to the 14-member board.
Shareholders also approved a nonbinding resolution to approve the
compensation for the company's named executive officers and
ratified the selection of Deloitte & Touche LLP as independent
registered public accounting firm for 2019.
Kenneth W. Stecher, chairman of
the board, commented: "We thank shareholders for their interest and
participation in the affairs of the company and for approving our
proposals, our selection of Deloitte & Touche and our nominees
to the board. Our highly engaged group of directors brings
diversity of thought and experience to guide long-term strategic
plans for Cincinnati Financial Corporation, as we work to create
increasing value for shareholders."
Directors elected to the board for terms of one year are:
- William F. Bahl, CFA, CIC,
chairman of Bahl & Gaynor Investment Counsel Inc. and the lead
independent director of Cincinnati Financial Corporation
- Gregory T. Bier, CPA, managing
partner (retired) of Deloitte LLP
- Linda W. Clement-Holmes, chief
information officer (retired) of The Procter & Gamble
Company
- Dirk J. Debbink, chairman and
chief executive officer of MSI General Corporation
- Steven J. Johnston, FCAS, MAAA,
CFA, CERA, president and chief executive officer of Cincinnati
Financial Corporation
- Kenneth C. Lichtendahl, director
of development and sales of Heliosphere Designs LLC
- W. Rodney McMullen, chairman and
chief executive officer of The Kroger Co.
- David P. Osborn, CFA, president
of Osborn Williams & Donohoe
LLC
- Gretchen W. Price, executive
vice president, chief financial and administrative officer
(retired) of Arbonne International LLC
- Thomas R. Schiff, chairman and
chief executive officer of John J. & Thomas R. Schiff & Co. Inc.
- Douglas S. Skidmore, chief
executive officer of Skidmore Sales
& Distributing Company Inc.
- Kenneth W. Stecher, chairman of
the board of Cincinnati Financial Corporation
- John F. Steele, Jr., chairman
and chief executive officer of Hilltop Basic Resources Inc.
- Larry R. Webb, CPCU, president
of Webb Insurance Agency Inc.
The board also met on April 27 and
announced committee service for the coming year, in line with the
independence requirements of applicable law and the listing
standards of Nasdaq:
- Audit – Gretchen W. Price
(chairperson), William F. Bahl,
Gregory T. Bier, Linda W. Clement-Holmes, Dirk J. Debbink, Kenneth
C. Lichtendahl, David P.
Osborn, Douglas S. Skidmore
and John F. Steele, Jr.
- Compensation – W. Rodney
McMullen (chairperson), Linda W.
Clement-Holmes, Kenneth C.
Lichtendahl, David P. Osborn
and Gretchen W. Price
- Executive – Steven J. Johnston
(chairperson), William F. Bahl, W.
Rodney McMullen, Kenneth W. Stecher, John
F. Steele, Jr. and Larry R.
Webb
- Investment – Kenneth W. Stecher
(chairperson), William F. Bahl,
Gregory T. Bier, Steven J. Johnston, W. Rodney McMullen, David
P. Osborne, Thomas R. Schiff
and Larry R. Webb; Richard M. Burridge, CFA, continues to serve as
committee adviser
- Nominating – William F. Bahl
(chairman), Linda W. Clement-Holmes,
Dirk J. Debbink, Gretchen W. Price and Douglas S. Skidmore
About Cincinnati Financial
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 insurance, fixed
annuities and surplus lines property and casualty insurance.
For additional information about the company, please visit
cinfin.com.
Mailing
Address:
|
Street
Address:
|
P.O. Box
145496
|
6200 South Gilmore
Road
|
Cincinnati, Ohio
45250-5496
|
Fairfield, Ohio
45014-5141
|
Safe Harbor
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 2018 Annual Report on Form 10-K,
Item 1A, Risk Factors, Page 33.
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 or development of
claims that are unforeseen at the time of policy issuance
- Inadequate estimates, assumptions or reliance on third-party
data used for critical accounting estimates
- Declines in overall stock market values negatively affecting
the company's equity portfolio and book value
- 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
- Domestic and global events resulting in capital market or
credit market uncertainty, followed by prolonged periods of
economic instability or recession, that lead to:
-
- Significant or prolonged decline in the fair value of a
particular security or group of securities and impairment of the
asset(s)
- Significant decline in investment income due to reduced or
eliminated dividend payouts from a particular security or group of
securities
- Significant rise in losses from surety and director and officer
policies written for financial institutions or other insured
entities
- Our inability to integrate MSP and its subsidiaries into our
on-going operations, or disruptions to our on-going operations due
to such integration
- Recession or other economic conditions resulting in lower
demand for insurance products or increased payment
delinquencies
- Difficulties with technology or data security breaches,
including cyberattacks, that could negatively affect our ability to
conduct business; disrupt our relationships with agents,
policyholders and others; cause reputational damage, mitigation
expenses and data loss and expose us to liability under federal and
state laws
- Disruption of the insurance market caused by technology
innovations such as driverless cars that could decrease consumer
demand for insurance products
- Delays, inadequate data developed internally or from third
parties, or performance inadequacies from ongoing development and
implementation of underwriting and pricing methods, including
telematics and other usage-based insurance methods, or technology
projects and enhancements expected to increase our pricing
accuracy, underwriting profit and competitiveness
- Increased competition that could result in a significant
reduction in the company's premium volume
- Changing consumer insurance-buying habits and consolidation of
independent insurance agencies that could alter our competitive
advantages
- Inability to obtain adequate ceded reinsurance on acceptable
terms, amount of reinsurance coverage purchased, financial strength
of reinsurers and the potential for nonpayment or delay in payment
by reinsurers
- 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
- Inability of our subsidiaries to pay dividends consistent with
current or past levels
- 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:
-
- Downgrades of the company's financial strength ratings
- Concerns that doing business with the company is too
difficult
- Perceptions that the company's level of service, particularly
claims service, is no longer a distinguishing characteristic in the
marketplace
- Inability or unwillingness to nimbly develop and introduce
coverage product updates and innovations that our competitors offer
and consumers expect to find 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:
-
- Impose new obligations on us that increase our expenses or
change the assumptions underlying our critical accounting
estimates
- Place the insurance industry under greater regulatory scrutiny
or result in new statutes, rules and regulations
- Restrict our ability to exit or reduce writings of unprofitable
coverages or lines of business
- 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
- Increase our provision for federal income taxes due to changes
in tax law
- Increase our other expenses
- Limit our ability to set fair, adequate and reasonable
rates
- Place us at a disadvantage in the marketplace
- Restrict our ability to execute our business model, including
the way we compensate agents
- Adverse outcomes from litigation or administrative
proceedings
- 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
- 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
- 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, global, 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.
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SOURCE Cincinnati Financial Corporation