Cincinnati Financial Corporation Announces Addition to Board
February 01 2010 - 8:47AM
PR Newswire (US)
CINCINNATI, Feb. 1 /PRNewswire-FirstCall/ -- Cincinnati Financial
Corporation (NASDAQ:CINF) - The Cincinnati Financial board of
directors, at its regular meeting on January 29, 2010, added a
fourteenth seat to the board, appointing Linda W. Clement-Holmes to
fill the seat effective February 1, 2010. She also will serve on
the audit committee. Clement-Holmes is senior vice president,
Global Diversity and Global Business Services, for The Procter
& Gamble Company. She joined P&G as a systems analyst and,
through her 27-year career, has moved through positions of
expanding responsibility in IT and Global Business Services. She
has led numerous breakthrough initiatives in IT systems management
and organizational development. She earned a Bachelor of Science in
Industrial Management and Computer Science degree from Purdue
University. She has served on a number of advisory boards
including: Conference Board-Council of Chief Information Officers,
IT Senior Management Forum, National Urban League, Jack & Jill
of America, Cincinnati Black Data Processing Association, Victory
Neighborhood Services and 4C (Comprehensive Community Child Care).
John J. Schiff, Jr., CPCU, chairman of the board, commented:
"Linda's expertise in strategic technology management complements
the diverse strengths of our current directors, rounding out our
board and supporting our goal to create value for shareholders." In
accordance with the company's governance guidelines, Clement-Holmes
will stand for re-election by shareholders at the annual meeting of
shareholders on May 1, 2010. Other nominees on the slate for terms
to expire in 2013 are continuing directors: Gregory T. Bier, CPA
(Ret), Douglas S. Skidmore and Larry R. Webb, CPCU. Vice Chairman
of the Board James E. Benoski, whose term also is expiring, will
not stand for re-election. Benoski, age 71, was president, chief
operating officer, chief insurance officer of the company until
July 2008. As previously announced, he retired from active
employment in January 2009. He continues as a director on all
subsidiary boards. Cincinnati Financial plans to report
fourth-quarter and year-end 2009 results on Thursday, February 4. A
conference call to discuss the results will be held at 11:00 a.m.
EST on that day. Details regarding the Internet broadcast of the
conference call are available on http://www.cinfin.com/investors.
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, annuities and surplus lines
property and casualty insurance. For additional information about
the company, please visit http://www.cinfin.com/. Mailing Address:
Street Address: P.O. 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 forward-looking statements
in this report. Some of those risks and uncertainties are discussed
in our 2008 Annual Report on Form 10-K, Item 1A, Risk Factors, Page
25. Although we often review or update our forward-looking
statements when events warrant, we caution our readers that we
undertake no obligation to do so. 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 -- Delays in adoption and
implementation of underwriting and pricing methods that could
increase our pricing accuracy, underwriting profit and
competitiveness -- 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 -- Declines in overall stock market values negatively
affecting the company's equity portfolio and book value -- Events,
such as the credit crisis, followed by prolonged periods of
economic instability or recession, that lead to: -- Significant or
prolonged decline in the 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 -- 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
-- Changing consumer insurance-buying habits and consolidation of
independent insurance agencies that could alter our competitive
advantages -- Ability to obtain adequate reinsurance on acceptable
terms, amount of reinsurance purchased, financial strength of
reinsurers and the potential for non-payment or delay in payment by
reinsurers -- 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: -- Multi-notch
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 -- Delays or inadequacies in the development,
implementation, performance and benefits of technology projects and
enhancements -- 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: --
Restrict our ability to exit or reduce writings of unprofitable
coverages or lines of business -- Place the insurance industry
under greater regulatory scrutiny or result in new statutes, rules
and regulations -- Increase our expenses -- 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 --
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,
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 recent
measures affecting corporate financial reporting and governance.
The ultimate changes and eventual effects, if any, of these
initiatives are uncertain. DATASOURCE: Cincinnati Financial
Corporation CONTACT: Investors: Dennis E. McDaniel,
+1-513-870-2768, ; or Media: Joan O. Shevchik, +1-513-603-5323, Web
Site: http://www.cinfin.com/
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