|New Mexico Agency Appointed to Represent The Cincinnati Insurance Company|
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CINCINNATI, Oct 01, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Cincinnati Financial Corporation (Nasdaq: CINF) announced that its lead property casualty subsidiary, The Cincinnati Insurance Company, launched operations in New Mexico on September 27 with the appointment of its first independent agency in that state.
Western Assurance Corp., located in Albuquerque, was selected to bring Cincinnati's insurance products and services to its business clients. Cincinnati Insurance executives met at the company's headquarters with Christopher S. Williams, CIC, president of Western Assurance, to initiate the relationship.
The agency appointment is the first of several that the company expects to make in New Mexico over the coming months. Earlier in 2007, Cincinnati appointed its first agencies in Washington and northern Idaho and added marketing territories to its operations in North Carolina. With the addition of New Mexico, the company now has 105 field marketing representatives living and working in its agents' communities across 34 states. By the end of the year, Cincinnati plans to add two additional marketing territories in New York State.
J.F. Scherer, Cincinnati's senior vice president of sales and marketing, commented, "Our experienced field marketing director, Charles A. Kelsch, has relocated to Placitas, New Mexico. Charlie led our efforts to begin doing business in North Carolina in 1982 and in Arkansas in 1994. He is adept at screening interested agencies and selecting those with the highest professional standards, compatible philosophies and formal marketing plans to serve our policyholders. We plan a great partnership with Western Assurance and look forward to partnering with additional independent agencies in New Mexico that Charlie recommends as sharing these high standards."
James E. Benoski, president and chief executive officer of Cincinnati Insurance, said, "Our state and territory expansions are opportunities to bring the Cincinnati value proposition to more businesses, contributing to our company's growth and the geographic diversification of our risks. The additional agencies we appoint can offer their clients the same advantages we deliver in established territories: high-quality claims service and business insurance coverages, many available on three-year policy terms and all backed by a financially strong company."
Benoski continued, "On September 18, Moody's Investors Service affirmed its Aa3 financial strength ratings and its stable outlook for Cincinnati Insurance and our standard lines property casualty subsidiaries. As we enter new areas, we believe our strong marks from several ratings organizations will help our new agencies document the company's credentials, giving us more opportunities to earn business."
Cincinnati Financial Corporation offers property and casualty insurance, our 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 2006 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 20. 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.
Investor Contact: Heather J. Wietzel