CINCINNATI, May 9, 2022 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today announced that based on preliminary voting results at the company's annual meeting on May 7, 2022, shareholders elected all directors for one-year terms to the 13-member board. Shareholders also approved a nonbinding resolution to approve the compensation for the company's named executive officers and ratified the selection of Deloitte & Touche LLP as independent registered public accounting firm for 2022.
The board of directors elected officers at its regularly scheduled meeting following the annual meeting, including the election of Stephen M. Spray as president of Cincinnati Financial Corporation. Spray is currently president of the corporation's U.S.-based subsidiaries. Steven J. Johnston was re-elected and remains the company's chairman and chief executive officer.
The following corporate officers were promoted to executive vice president:
Martin F. Hollenbeck, CFA, CPCU – Chief Investment Officer, Assistant Secretary and Assistant Treasurer
Lisa A. Love, Esq. – Chief Legal Officer and Corporate Secretary
Michael J. Sewell, CPA – Chief Financial Officer, Treasurer and Principal Accounting Officer
Steven J. Johnston, chairman and chief executive officer, commented: "We thank shareholders for their participation in the affairs of the company and for approving our proposals, including our selection of Deloitte & Touche; our executive compensation program; and our nominees to the board. Our directors have experiences from a variety of business backgrounds. Their skills complement each other as they work together to guide long-term strategic plans for Cincinnati Financial Corporation and to increase our long-term value for shareholders."
Directors elected to the board for terms of one year are:
Thomas J. Aaron, CPA, executive vice president and chief financial officer (retired) of Community Health Systems Inc.
William F. Bahl, CFA, CIC, chairman of Bahl & Gaynor Investment Counsel Inc. and the lead independent director of Cincinnati Financial Corporation
Nancy C. Benacci, head of research (retired) of KeyBanc Capital Markets
Linda W. Clement-Holmes, chief information officer (retired) of The Procter & Gamble Company
Dirk J. Debbink, chairman and chief executive officer of MSI General Corporation
Steven J. Johnston, FCAS, MAAA, CFA, CERA, chairman and chief executive officer of Cincinnati Financial Corporation
Jill P. Meyer, Esq., president and chief executive officer of the Cincinnati USA Regional Chamber
David P. Osborn, CFA, president of Osborn Williams & Donohoe LLC
Gretchen W. Schar, executive vice president, chief financial and administrative officer (retired) of Arbonne International LLC
Charles O. Schiff, executive vice president, secretary and treasurer of John J. & Thomas R. Schiff & Co. Inc.
Douglas S. Skidmore, chief executive officer of Skidmore Sales & Distributing Company Inc.
John F. Steele, Jr., chairman and chief executive officer of Hilltop Basic Resources Inc.
Larry R. Webb, CPCU, president of Webb Insurance Agency Inc.
The board also announced committee service for the coming year, in line with the independence requirements of applicable law and the listing standards of Nasdaq:
Audit – Gretchen W. Schar (chairperson), Thomas J. Aaron, William F. Bahl, Nancy C. Benacci, Linda W. Clement-Holmes, Dirk J. Debbink, and David P. Osborn
Compensation – David P. Osborn (chairperson), Linda W. Clement-Holmes and Gretchen W. Schar
Executive – Steven J. Johnston (chairperson), William F. Bahl, Douglas S. Skidmore, John F. Steele, Jr. and Larry R. Webb
Investment – Steven J. Johnston (chairperson), William F. Bahl, Nancy C. Benacci, David P. Osborn, Charles O. Schiff and Larry R. Webb
Nominating – William F. Bahl (chairperson), Linda W. Clement-Holmes, Dirk J. Debbink, Jill P. Meyer, Gretchen W. Schar and Douglas S. Skidmore
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.
P.O. Box 145496
6200 South Gilmore Road
Cincinnati, Ohio 45250-5496
Fairfield, Ohio 45014-5141
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 2021 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 32.
Factors that could cause or contribute to such differences include, but are not limited to:
Effects of the COVID-19 pandemic that could affect results for reasons such as:
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:
Unusually 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, terrorism incidents, cyberattacks, civil unrest or other causes
Increased 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 causes
Inadequate estimates or assumptions, or reliance on third-party data used for critical accounting estimates
Declines in overall stock market values negatively affecting our equity portfolio and book value
Prolonged low interest rate environment or other factors that limit our 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
Domestic and global events, such as Russia's invasion of Ukraine, resulting in capital market or credit market uncertainty, followed by prolonged periods of economic instability or recession, that lead to:
Our inability to manage Cincinnati Global or other subsidiaries to produce related business opportunities and growth prospects for our ongoing operations
Recession, prolonged elevated inflation or other economic conditions resulting in lower demand for insurance products or increased payment delinquencies
Ineffective information technology systems or discontinuing to develop and implement improvements in technology may impact our success and profitability
Difficulties 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 laws
Difficulties 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 security
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
Intense 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 ability to maintain or increase our business volumes and profitability
Changing consumer insurance-buying habits and consolidation of independent insurance agencies 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 our relationships with our independent agencies and hamper opportunities to add new agencies, resulting in limitations on our opportunities for growth, such as:
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:
Adverse outcomes from litigation or administrative proceedings, including effects of social inflation on the size of litigation awards
Events 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 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
Our 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 advantages
Events, 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