Cincinnati Financial Corporation Increases Regular Quarterly Cash Dividend

CINCINNATI, January 28, 2022 /PRNewswire/ — Cincinnati Financial Corporation (Nasdaq: CINF) announced that at today’s regular meeting, the Board of Directors declared a 69 cents-regular quarterly cash dividend per share, up 10% from previous 63 cents-dividend per share paid on January 14, 2022. The dividend is payable April 15, 2022, to shareholders registered in March 18, 2022.

Steven J. Johnston, Chairman, President and Chief Executive Officer, said, “We believe in defining and executing strategies that we believe will lead to profitable growth and financial strength, enabling us to reward shareholders in the short term through the payment of dividends and in the long term through share price appreciation.

“This financial strength also allows us to provide a predictable insurance market to the independent agents who represent us, attract and retain talented associates, pay covered claims quickly, and help families and businesses in the communities that we serve to proactively manage risk.”

About Cincinnati Financial
The Cincinnati Financial Corporation primarily offers business, home, and auto insurance through the Cincinnati Insurance Company and its two market-standard property and casualty insurers. The same local independent insurance agencies that market these policies may offer products from our other subsidiaries, including life insurance, fixed annuities and property and casualty insurance. For more information about the company, please visit cinfin.com.

Mailing address: Civic address:
PO Box 145496 6200 South Gilmore Road
Cincinnati, Ohio 45250-5496 Fairfield, Ohio 45014-5141

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 statements. perspectives of this report. Some of these risks and uncertainties are discussed in our 2020 Annual Report on Form 10-K, Item 1A, Risk Factors, page 34.

Factors that could cause or contribute to such differences include, but are not limited to:

  • Effects of the COVID-19 pandemic which could affect results for reasons such as:

  • Ongoing developments regarding business interruption insurance claims and litigation related to the COVID-19 pandemic that affect our estimates of losses and loss adjustment expenses or our ability to reasonably estimate such losses, such than :

  • Unusually high levels of disaster losses due to concentrations of risk, changes in weather patterns (whether due to global climate change or otherwise), environmental events, terrorist incidents, civil unrest or other causes

  • Increase in frequency and/or severity of claims or development of unforeseen claims at the time of policy issuance, due to inflationary trends or other causes

  • Inadequate estimates or assumptions, or reliance on third-party data used for critical accounting estimates

  • Declines in overall stock market values ‚Äč‚Äčnegatively impact our equity portfolio and book value

  • Prolonged environment of low interest rates or other factors that limit our ability to generate investment income growth or interest rate fluctuations that cause the value of fixed-maturity investments to decline, including declines in accounts in which we hold life insurance contract assets held by a bank

  • National and global events causing uncertainty in financial or credit markets, followed by prolonged periods of economic instability or recession, which result in:

  • Our inability to manage Cincinnati Global or other subsidiaries to produce business opportunities and related growth prospects for our ongoing operations

  • Recession or other economic conditions resulting in reduced demand for insurance products or increased late payments

  • Inefficient information technology systems or the discontinuation of the development and implementation of technological improvements may affect our success and profitability

  • Difficulties related to technological or data security breaches, including cyberattacks, which could adversely affect our ability or that of our agents to do business; disrupt our relationships with agents, policyholders and others; cause reputational damage, mitigation expense, and loss of data and subject us to liability under federal and state laws

  • Difficulties with our operations and technology that may negatively impact our ability to conduct our business, including storing data information in the cloud, data security, cyberattacks, remote working capabilities and /or outsourcing relationships and third party operations and data security

  • Insurance market disruption caused by technological innovations such as driverless cars that could reduce consumer demand for insurance products

  • Delays, inadequate data developed internally or by third parties, or performance deficiencies due to the continued development and implementation of underwriting and pricing methods, including telematics and other insurance based methods on usage, or technology projects and improvements intended to increase our pricing accuracy, underwriting profit and competitiveness

  • Intense competition and the impact of innovation, technological change and changing customer preferences on the insurance industry and the markets in which we operate could impair our ability to maintain or increase our ability to maintain or increase our business volumes and profitability

  • Changing Consumer Insurance Buying Habits and Consolidation of Independent Insurance Agencies Could Change Our Competitive Advantages

  • Inability to obtain adequate ceded reinsurance on acceptable terms, amount of reinsurance cover purchased, financial strength of reinsurers and possibility of non-payment or late payment by reinsurers

  • Inability to defer policy acquisition costs for any business segment if price and loss trends lead management to conclude that such segment may not achieve sustainable profitability

  • Inability of our subsidiaries to pay dividends consistent with current or historical levels

  • Events or conditions that could weaken or harm our relationships with our independent agencies and hinder opportunities to add new agencies, resulting in limitations on our opportunities for growth, such as:

  • Actions by insurance departments, state attorneys general, or other regulatory agencies, including a change to a federal regulatory system from a state-based system, that:

  • Adverse results of litigation or administrative proceedings, including the effects of social inflation on the amount of litigation compensation

  • Events or actions, including the intentional unauthorized override of controls, that reduce our future ability to maintain effective internal control over financial reporting under the Sarbanes-Oxley Act of 2002

  • Unexpected departure of certain executives or other key employees due to retirement, health or other causes which could interrupt progress towards important strategic objectives or diminish the effectiveness of certain long-standing relationships with insurance and others

  • Our inability, or the inability of our independent agents, to attract and retain staff in a competitive labor market, impacting customer experience and altering our competitive advantages

  • Events, such as an epidemic, natural disaster or act of terrorism, which could impede our ability to assemble our staff at our headquarters or to work effectively in a remote environment

In addition, our insurance business is subject to the effects of changing social, global, economic and regulatory environments. Public and regulatory initiatives have included efforts to negatively influence and restrict premium rates, restrict the ability to cancel policies, impose underwriting standards and expand global regulation. We are also subject to public and regulatory initiatives that may affect the market value of our common stock, such as actions affecting financial reporting and corporate governance. The ultimate changes and potential effects, if any, of these initiatives are uncertain.

Cincinnati Financial Corporation logo.  (PRNewsFoto/Cincinnati Financial Corporation) (PRNewsFoto/CINCINNATI FINANCIAL CORPORATION)

Cincinnati Financial Corporation logo. (PRNewsFoto/Cincinnati Financial Corporation) (PRNewsFoto/CINCINNATI FINANCIAL CORPORATION)

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SOURCECincinnati Financial Corporation

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