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CINCINNATI, Aug. 16 /PRNewswire-FirstCall/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today announced that at its regular meeting on August 13, 2004, the board of directors declared a 27.5 cents per share regular quarterly cash dividend payable October 15, 2004, to shareholders of record on September 24, 2004. The indicated annual dividend is $1.10 per share.
Chairman and Chief Executive Officer John J. Schiff, Jr., CPCU commented, "For 44 years, our board has rewarded shareholders with annual dividend increases. Maintaining the dividend at 27.5 cents on the higher number of shares outstanding after the 5 percent stock dividend paid on June 15 further demonstrates the board's belief that our operating trends are positive and shareholders should enjoy this consistency in the future."
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 supports the insurance subsidiaries and their independent agent representatives through commercial leasing and financing activities. CinFin Capital Management Company provides asset management services to institutions, corporations and individuals. For additional information, please visit the company's Web site at http://www.cinfin.com .
This is a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995. Certain forward-looking statements contained herein involve potential risks and uncertainties. The company's future results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to:
- unusually high levels of catastrophe losses due to changes in weather
patterns, environmental events, terrorism incidents or other causes
- increased frequency and/or severity of claims
- 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:
- downgrade of the company's financial strength ratings,
- concerns that doing business with the company is too difficult or
- perceptions that the company's level of service is no longer a
distinguishing characteristic in the marketplace
- delays in the development, implementation, performance and benefits of
technology projects and enhancements
- amount of reinsurance purchased and financial strength of reinsurers
- inaccurate estimates or assumptions used for critical accounting
estimates, including loss reserves
- recession or other economic conditions or regulatory, accounting or tax
changes resulting in lower demand for insurance products
- sustained decline in overall stock market values negatively affecting
the company's equity portfolio, in particular a sustained decline in
the market value of Fifth Third Bancorp (Fifth Third) shares, a
significant equity holding
- events that lead to a significant decline in the market value of a
particular security and impairment of the asset
- prolonged low interest rate environment or other factors that limit the
company's ability to generate growth in investment income
- insurance regulatory actions, legislation or court decisions that
increase expenses or place the company at a disadvantage in the
marketplace
- adverse outcomes from litigation or administrative proceedings
- not receiving an exemptive order pursuant to the Investment Company Act
of 1940 from the SEC, and the resulting changes that would be required
in the company's operations
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.
Readers are cautioned that the company undertakes no obligation to review or update the forward-looking statements included in this material.
SOURCE Cincinnati Financial Corporation
/CONTACT: Investors, Heather J. Wietzel, +1-513-603-5236,
or Media, Joan O. Shevchik, +1-513-603-5323,
both of Cincinnati Financial Corporation/
/Web site: http://www.cinfin.com /
(CINF)