CINCINNATI FINANCIAL CORPORATION (NASDAQ:CINF) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02(b) Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers
Cincinnati Financial Corporation previously announced that
Kenneth W. Stecher, director and executive chairman of the board
of directors of Cincinnati Financial Corporation, planned to
retire from active employment, but would continue as a director
and non-executive chairman of the board. On December 20, 2016,
Mr. Stecher informed the company that the effective date of his
retirement will be January 31, 2017.
The company also previously announced the upcoming retirement of
named executive officer Charles P. Stoneburner, II, senior vice
president of the companys lead subsidiary, The Cincinnati
Insurance Company. On December 17, 2016, Mr. Stoneburner informed
the company that the effective date of his retirement will be
January 6, 2017.
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 2015 Annual Report on Form 10-K, Item 1A, Risk
Factors, Page 26.
Factors that could cause or contribute to such differences
include, but are not limited to:
Unusually high levels of catastrophe losses due to risk
concentrations, changes in weather patterns, environmental
events, terrorism incidents or other causes
Increased frequency and/or severity of claims or
development of claims that are unforeseen at the time of
policy issuance
Inadequate estimates, assumptions or reliance on
third-party data used for critical accounting estimates
Declines in overall stock market values negatively
affecting the companys equity portfolio and book value
Domestic and global events resulting in capital market or
credit market uncertainty, followed by prolonged periods of
economic instability or recession, that lead to:
o
Significant or prolonged decline in the fair value of a
particular security or group of securities and impairment
of the asset(s)
o
Significant decline in investment income due to reduced or
eliminated dividend payouts from a particular security or
group of securities
o
Significant rise in losses from surety and director and
officer policies written for financial institutions or
other insured entities
Prolonged low interest rate environment or other factors
that limit the companys ability to generate growth in
investment income or interest rate fluctuations that result
in declining values of fixed-maturity investments,
including declines in accounts in which we hold bank-owned
life insurance contract assets
Recession or other economic conditions resulting in lower
demand for insurance products or increased payment
delinquencies
Difficulties with technology or data security breaches,
including cyberattacks, that could negatively affect our
ability to conduct business and our relationships with
agents, policyholders and others
Disruption of the insurance market caused by technology
innovations such as driverless cars that could decrease
consumer demand for insurance products
Delays, 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 competitiveness
Increased competition that could result in a significant
reduction in the companys premium volume
Changing consumer insurance-buying habits and consolidation
of independent insurance agencies that could alter our
competitive advantages
Inability 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 reinsurers
Inability 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 profitability
Inability of our subsidiaries to pay dividends consistent
with current or past levels
Events or conditions that could weaken or harm the companys
relationships with its independent agencies and hamper
opportunities to add new agencies, resulting in limitations
on the companys opportunities for growth, such as:
o
Downgrades of the companys financial strength ratings
o
Concerns that doing business with the company is too
difficult
o
Perceptions that the companys level of service,
particularly claims service, is no longer a distinguishing
characteristic in the marketplace
o
Inability or unwillingness to nimbly develop and introduce
coverage product updates and innovations that our
competitors offer and consumers expect to find in the
marketplace
Actions 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:
o
Impose new obligations on us that increase our expenses or
change the assumptions underlying our critical accounting
estimates
o
Place the insurance industry under greater regulatory
scrutiny or result in new statutes, rules and regulations
o
Restrict our ability to exit or reduce writings of
unprofitable coverages or lines of business
o
Add assessments for guaranty funds, other insurancerelated
assessments or mandatory reinsurance arrangements; or that
impair our ability to recover such assessments through
future surcharges or other rate changes
o
Increase our provision for federal income taxes due to
changes in tax law
o
Increase our other expenses
o
Limit our ability to set fair, adequate and reasonable
rates
o
Place us at a disadvantage in the marketplace
o
Restrict our ability to execute our business model,
including the way we compensate agents
Adverse outcomes from litigation or administrative
proceedings
Events or actions, including unauthorized intentional
circumvention of controls, that reduce the companys future
ability to maintain effective internal control over
financial reporting under the Sarbanes-Oxley Act of 2002
Unforeseen 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 others
Events, such as an epidemic, natural catastrophe or
terrorism, that could hamper our ability to assemble our
workforce at our headquarters location
Further, the companys 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. The company also is
subject to public and regulatory initiatives that can affect the
market value for its common stock, such as measures affecting
corporate financial reporting and governance. The ultimate
changes and eventual effects, if any, of these initiatives are
uncertain.
About CINCINNATI FINANCIAL CORPORATION (NASDAQ:CINF)
Cincinnati Financial Corporation is an insurance holding company. The Company is engaged in the business of property casualty insurance marketed through independent insurance agencies in over 40 states. It operates through five segments: Commercial lines insurance, Personal lines insurance, Excess and surplus lines insurance, Life insurance and Investments. It operates through three subsidiaries: The Cincinnati Insurance Company, CSU Producer Resources Inc. and CFC Investment Company. Its market property casualty insurance group includes two of those subsidiaries: The Cincinnati Casualty Company and The Cincinnati Indemnity Company. This group writes business, homeowner and auto policies. Other subsidiaries of The Cincinnati Insurance Company include The Cincinnati Life Insurance Company, which provides life insurance, disability income policies and fixed annuities, and The Cincinnati Specialty Underwriters Insurance Company, which offers excess and surplus lines insurance products. CINCINNATI FINANCIAL CORPORATION (NASDAQ:CINF) Recent Trading Information
CINCINNATI FINANCIAL CORPORATION (NASDAQ:CINF) closed its last trading session up +0.01 at 76.52 with 414,149 shares trading hands.
The post CINCINNATI FINANCIAL CORPORATION (NASDAQ:CINF) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers appeared first on Market Exclusive.