CINCINNATI, August 19, 2022 /PRNewswire/ — Cincinnati Financial Corporation (Nasdaq: CINF) has announced that in today’s ordinary session, the board of directors has declared a 69 cents-Quarterly cash dividend per share. The dividend is paid October 14, 2022to shareholders of record from September 16, 2022.
Steven J. Johnstonchairman and CEO, commented, “The payment of this dividend in October will complete our 62nd year of increasing annual cash dividends. Cincinnati Financial’s excellent financial strength and demonstrated ability to operate long-term success supports regular dividends, our preferred way of returning capital to shareholders.”
About Cincinnati Financial
Cincinnati Financial Corporation primarily offers business, home and auto insurance through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market these policies may offer products from our other subsidiaries, such as life insurance, fixed annuities, and surplus lines property and casualty insurance. For additional company information, visit cinfin.com.
Safe harbor declaration
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 could cause actual results to differ materially from those suggested by forward-looking statements. this report. Some of these risks and uncertainties are discussed in our 2021 Annual Report on Form 10-K, Item 1A, Risk Factors, page 32.
Factors that could cause or contribute to these differences include, but are not limited to:
Effects of the COVID-19 pandemic that could affect results due to reasons such as: Stock market disruption or volatility and related effects such as decreased economic activity and continued supply chain disruptions affecting our investment portfolio and book value An unusually high level of claims in our insurance or reinsurance operations that increase litigation-related expenses An unusually high level of insurance losses, including the risk of laws or court decisions that expand business interruption insurance on commercial property coverage forms to cover claims for pure economic losses related to the COVID-19 pandemic Decreased premium revenue and cash flow due to interruption of our channel of distribution of independent agents, consumer self-isolation, travel limitations, trade restrictions and decline or economic activity Inability of our workforce, agencies or suppliers to perform necessary business functions. and litigation related to the COVID-19 pandemic that affects our estimates of losses and loss adjustment expenses or our ability to reasonably estimate such losses, such as: The continued duration of the pandemic and government actions to limiting the spread of the virus that may result in additional economic losses The number of policyholders who will ultimately file claims or file lawsuits The lack of submitted evidence of losses for purportedly covered claims Court rulings in similar litigation involving other companies in the insurance industry insurance Differences in state laws and developing case law Litigation trends, including different legal theories advanced by policyholders Whether and to what extent any class of policyholders can be certified The inherent unpredictability of litigation Unusually high levels of losses for catastrophes due to concentration risk waves, changes in weather patterns (whether as a result of global climate change or otherwise), environmental events, war or political conflict, terrorist incidents, cyber attacks, civil unrest or other causes Increase in the frequency and/or severity of claims or the development of claims that were not foreseen at the time the policy was issued, due to inflationary trends or other causes Inadequate estimates or assumptions, or dependence on third parties – data from the parties used for critical accounting estimates Decline in overall stock market values that adversely affect our equity portfolio and book value Prolonged low interest rate environment or other factors that limit our ability to generate revenue growth investment or fluctuations in interest rates that result in a decrease in the values of Investments with fixed maturity, including dis deductions in accounts where we have assets from life insurance contracts owned by the bank. National and global events such as Russia’s invasion of Ukraine, which causes uncertainty in the capital market or in the credit market, followed by prolonged periods of economic instability or recession, leading to: A significant or prolonged decrease in the fair value of a particular security or group of securities and impairment of the asset or assets. in investment income due to the reduction or elimination of dividend payments on a particular security or group of securities Significant increase in losses arising from underwriting or directors’ and officers’ policies written for financial institutions or other entities insured Our inability to manage Cincinnati Global or other subsidiaries to produce related business opportunities and growth prospects for our ongoing operations Recession, prolonged high inflation or other economic conditions that result in lower demand for products insurance or an increase in late payments. Ineffective information technology systems or disruption to the development and implementation of technology improvements may affect our success and profitability. y Difficulties with technological or data security breaches, including cyber-attacks, which could adversely affect our or our agents’ ability to do business; disrupt our relationships with agents, policyholders and others; cause reputational damage, mitigation costs and data loss and expose us to liability under federal and state laws. Difficulties with our operations and technology that may adversely affect our ability to do business, including cloud-based storage of data information, data security, cyber attacks, remote work. 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 decrease consumer demand for insurance products Delays, inadequate data developed internally or from third parties, or inadequacies in performance From the ongoing development and implementation of underwriting and pricing methods, including telematics and other usage-based insurance methods, or technology projects and improvements that are expected to increase our pricing accuracy, underwriting benefits and competitiveness Intense competition and the impact of innovation, technological change and Aging customer preferences in the insurance industry and markets in which we operate, could impair our ability to maintain or increase our ability to maintain or increase our business volumes ci and profitability. Changing consumer insurance purchasing habits and the consolidation of independent insurance agencies could alter our competitiveness. advantages Inability to obtain adequate ceded reinsurance on acceptable terms, amount of reinsurance coverage purchased, financial strength of reinsurers and the possibility of default or delay in payment by reinsurers Inability to defer acquisition costs of policies for any business segment if price and loss trends lead management to conclude that the 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 our relationships with our independent agencies and hinder opportunities to add new agencies, resulting in limitations on our agencies. r opportunities for growth, such as: Downgrades of our financial strength ratings Concern that doing business with us is too difficult Perceptions that our level of service, particularly claims service, is no longer a distinctive feature in the marketplace Inability or unwillingness to develop and develop with agility. introduce updates and innovations in coverage products offered by our competitors and that consumers expect to find in the marketplace Actions by insurance departments, state attorneys general or other regulatory agencies, including a shift to a federal system of regulation of a state-based system, which: new obligations to us that increase our expenses or change the assumptions underlying our critical accounting estimates. Place the insurance industry under greater regulatory scrutiny or lead to new statutes, rules and regulations. Restrict our ability to exit or reduce unprofitable hedges or lines of business valuations for guaranty funds, other insurers valuations related to ce or mandatory reinsurance arrangements; or that impair our ability to recover these 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 rates fair, appropriate and reasonable Place us at a disadvantage in the marketplace Restrict our ability to execute our business model, including how we compensate agents. Adverse outcomes of litigation or administrative proceedings, including the effects of social inflation on the size of litigation awards. Events or actions, including the intentional unauthorized circumvention of controls, that reduce our future ability to maintain effective internal control over financial reporting in accordance with the Sarbanes-Oxley Act of 2002. Unplanned departure of certain executives or other key employees for retirement, health or other causes that could interrupt progress toward important strategic objectives or diminish the effectiveness of certain long-standing relationships wi Insurance agents and others Our inability, or the inability of our independent agents, to attract and retain staff in a competitive labor market, affecting the customer experience and altering our competitive advantages Events, such as an epidemic, natural disaster or terrorism, that may hinder our ability to assemble our workforce at our headquarters or work effectively in a remote environment
In addition, our insurance businesses are subject to the effects of changes in the social, global, economic and regulatory environment. 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 general regulation. We are also subject to public and regulatory initiatives that may affect the market value of our common stock, such as measures affecting corporate and government financial reporting. The final changes and eventual effects, if any, of these initiatives are uncertain.
SOURCE Cincinnati Financial Corporation
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