Cincinnati Financial Corporation Declares Regular Quarterly Cash Dividend

CINCINNATI, Aug. 23, 2024 /PRNewswire/ — Cincinnati Financial Corporation (Nasdaq: CINF) announced that at today’s regular meeting, the board of directors declared an 81-cents-per-share regular quarterly cash dividend. The dividend is payable October 15, 2024, to shareholders of record as of September 17, 2024.

Stephen M. Spray, president and chief executive officer, commented, “The payment of this dividend in October will complete 64 years of increasing annual cash dividends, an achievement that we believe only seven other public companies in the U.S. can claim. The confidence we have in our capital strength and in our ability to achieve industry-leading operating performance through our insurance business bolsters our belief that we’ll continue to generate shareholder value through stock price appreciation and dividend payments far into the future.” 

About Cincinnati Financial
Cincinnati Financial Corporation offers primarily 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 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.

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 2023 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 30.

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

Ongoing developments concerning 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 as:The number of policyholders that will ultimately submit claims or file lawsuitsThe lack of submitted proofs of loss for allegedly covered claimsJudicial rulings in similar litigation involving other companies in the insurance industryDifferences in state laws and developing case lawLitigation trends, including varying legal theories advanced by policyholdersWhether and to what degree any class of policyholders may be certifiedThe inherent unpredictability of litigationEffects of any future pandemic, or the resurgence of the COVID-19 pandemic, that could affect results for reasons such as: Securities market disruption or volatility and related effects such as decreased economic activity and continued supply chain disruptions that affect our investment portfolio and book valueAn unusually high level of claims in our insurance or reinsurance operations that increase litigation-related expensesAn unusually high level of insurance losses, including risk of court decisions extending business interruption insurance in commercial property coverage forms to cover claims for pure economic loss related such pandemicDecreased premium revenue and cash flow from disruption to our distribution channel of independent agents, consumer self-isolation, travel limitations, business restrictions and decreased economic activityInability of our workforce, agencies or vendors to perform necessary business functionsUnusually high levels of catastrophe losses due to risk concentrations, changes in weather patterns (whether as a result of global climate change or otherwise), environmental events, war or political unrest, terrorism incidents, cyberattacks, civil unrest or other causesIncreased frequency and/or severity of claims or development of claims that are unforeseen at the time of policy issuance, due to inflationary trends or other causesInadequate estimates or assumptions, or reliance on third-party data used for critical accounting estimatesDeclines in overall stock market values negatively affecting our equity portfolio and book valueInterest rate fluctuations or other factors that could significantly affect:Our ability to generate growth in investment incomeValues of our fixed-maturity investments, including accounts in which we hold bank-owned life insurance contract assetsOur traditional life policy reservesDomestic and global events, such as Russia’s invasion of Ukraine, war in the Middle East and disruptions in the banking and financial services industry, resulting in insurance losses, 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 securitiesSignificant rise in losses from surety or director and officer policies written for financial institutions or other insured entities or in losses from policies written by Cincinnati Re or Cincinnati Global.Our inability to manage Cincinnati Global or other subsidiaries to produce related business opportunities and growth prospects for our ongoing operationsRecession, prolonged elevated inflation or other economic conditions resulting in lower demand for insurance products or increased payment delinquenciesIneffective information technology systems or discontinuing to develop and implement improvements in technology may impact our success and profitabilityDifficulties with technology or data security breaches, including cyberattacks, that could negatively affect our or our agents’ 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 lawsDifficulties with our operations and technology that may negatively impact our ability to conduct business, including cloud-based data information storage, data security, cyberattacks, remote working capabilities, and/or outsourcing relationships and third-party operations and data securityDisruption of the insurance market caused by technology innovations such as driverless cars that could decrease consumer demand for insurance productsDelays, 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 competitivenessIntense competition, and the impact of innovation, technological change and changing customer preferences on the insurance industry and the markets in which we operate, could harm our ability to maintain or increase our business volumes and profitabilityChanging consumer insurance-buying habits and consolidation of independent insurance agencies could alter our competitive advantagesInability 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 reinsurersInability 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 profitabilityInability of our subsidiaries to pay dividends consistent with current or past levelsEvents or conditions that could weaken or harm our relationships with our independent agencies and hamper opportunities to add new agencies, resulting in limitations on our opportunities for growth, such as:Downgrades of our financial strength ratingsConcerns that doing business with us is too difficultPerceptions that our level of service, particularly claims service, is no longer a distinguishing characteristic in the marketplaceInability or unwillingness to nimbly develop and introduce coverage product updates and innovations that our competitors offer and consumers expect to find in the marketplaceActions 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 estimatesPlace the insurance industry under greater regulatory scrutiny or result in new statutes, rules and regulationsRestrict our ability to exit or reduce writings of unprofitable coverages or lines of businessAdd 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 changesIncrease our provision for federal income taxes due to changes in tax lawIncrease our other expensesLimit our ability to set fair, adequate and reasonable ratesPlace us at a disadvantage in the marketplaceRestrict our ability to execute our business model, including the way we compensate agentsAdverse outcomes from litigation or administrative proceedings, including effects of social inflation and third-party litigation funding on the size of litigation awardsEvents or actions, including unauthorized intentional circumvention of controls, that reduce our future ability to maintain effective internal control over financial reporting under the Sarbanes-Oxley Act of 2002Unforeseen 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 othersOur inability, or the inability of our independent agents, to attract and retain personnel in a competitive labor market, impacting the customer experience and altering our competitive advantagesEvents, such as an epidemic, natural catastrophe or terrorism, that could hamper our ability to assemble our workforce at our headquarters location or work effectively in a remote environment

Further, our 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. We also are subject to public and regulatory initiatives that can affect the market value for our 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