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|Cincinnati Financial Corporation Increases Cash Dividend and Announces Board Actions|
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CINCINNATI, Feb. 5 /PRNewswire-FirstCall/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today announced that the board of directors voted at its regular meeting on February 2, 2007, to increase the regular quarterly cash dividend 6 percent to 35.5 cents per share, payable April 16, 2007, to shareholders of record on March 23, 2007. At the new level, the indicated annual dividend is $1.42 per share. Cash dividends declared in 2006 were $1.34 per share.
Chairman and Chief Executive Officer John J. Schiff, Jr., CPCU, commented, "Careful attention to property casualty underwriting and our total-return investment strategy has helped us maintain a strong financial position and achieve industry-leading results over the long-term. Today's action signals the board's continuing confidence in our long-term outlook."
Cincinnati Financial's common stock total return to shareholders over the five years ended December 31, 2006, was 49.4 percent compared with a 35.0 percent total return for the Standard & Poor's 500 Index.
The company also announced that the board confirmed the slate of nominees for election at the company's annual meeting of shareholders on May 5, 2007. Directors standing for re-election for three-year terms to expire in 2010 are: Dirk J. Debbink, Douglas S. Skidmore and newly appointed director Gregory T. Bier, CPA (retired). As previously announced, Michael Brown and John M. Shepherd, current directors, will not stand for re-election due to the company's guidelines on director age. The board determined that 10 of the current 15 members meet the applicable criteria for independence.
The board also approved the code of ethics for senior financial officers, the code of conduct for all company associates and board committee charters, which are reviewed annually by the respective committees as stipulated in the governance guidelines. Further, the board formalized several current company practices with updates to the corporate governance guidelines on board membership criteria, director elections and stock ownership guidelines for directors and officers.
"Cincinnati Financial's management and directors purposefully align business decisions with our mission, which includes fulfilling the company's obligations to its independent agents, policyholders and shareholders as well as associates, suppliers and communities it serves. We work diligently to meet those obligations and to act with integrity," said Schiff.
Cincinnati Financial plans to report fourth-quarter and year-end 2006 results on Wednesday, February 7. 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 www.cinfin.com/investors, as are the code of ethics, code of conduct, board committee charters and corporate governance guidelines.
Cincinnati Financial Corporation offers property and casualty insurance, its main business, through The Cincinnati Insurance Company, The Cincinnati Indemnity Company and The Cincinnati Casualty Company. The Cincinnati Life Insurance Company markets life and disability income insurance and annuities. CFC Investment Company offers commercial leasing and financing services. CinFin Capital Management Company provides asset management services to institutions, corporations and individuals. For additional information about the company, please visit www.cinfin.com.
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 2005 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 21. 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:
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.
SOURCE Cincinnati Financial Corporation
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