2011 Second-Quarter Letter to Shareholders
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Cincinnati Financial Corporation Announces Leadership Transitions

Cincinnati, April 25, 2011 — Cincinnati Financial Corporation (Nasdaq:CINF) today announced the transition of company leadership and expanded responsibilities for key officers, effective May 2, 2011.

Kenneth W. Stecher, president and chief executive officer, commented, “When our current executive team formed almost three years ago, our board of directors requested a priority on development and progression of future candidates who could broaden their experience and contributions, moving up in the normal course of business. Today’s announcement confirms the success of that plan, as our board taps some of our proven executives to take on higher responsibilities. This approach assures the continuity of our values, commitments and operations, as well as our ability to keep driving strategic initiatives to improve growth and profitability.”

Corporate and subsidiary officer and board leadership changes

(effective May 2, 2011, unless otherwise indicated):

  • Kenneth W. Stecher, previously president and chief executive officer, becomes chairman of the board for Cincinnati Financial and all subsidiaries.
  • John J. Schiff, Jr., CPCU, previously chairman, continues as a member of the board of directors and chairman of the executive committee for Cincinnati Financial and its insurance subsidiaries.
  • Steven J. Johnston, FCAS, MAAA, CFA, previously chief financial officer, secretary and treasurer, is promoted to president and chief executive officer for Cincinnati Financial. He is chief executive officer for all subsidiaries and president of four subsidiaries: The Cincinnati Insurance Company, The Cincinnati Indemnity Company, The Cincinnati Specialty Underwriters Insurance Company and CSU Producer Resources Inc.
  • Jacob F. Scherer, executive vice president for the insurance subsidiaries and the insurance brokerage, has expanded responsibility for oversight of Business Insurance, a new consolidation of Sales & Marketing, which he currently manages, with Commercial Lines, Target Markets and excess and surplus lines operations.
  • Teresa C. Cracas, previously vice president and counsel, is promoted to senior vice president of strategic analytics and chief risk officer for all subsidiaries. She is responsible for oversight of departments that manage data modeling for financial analysis and property casualty insurance reserving and pricing, including Staff Underwriting and Corporate Actuarial.
  • Lisa A. Love, previously senior counsel for the insurance subsidiaries, is promoted to general counsel and corporate secretary for Cincinnati Financial and all subsidiaries.
  • Michael J. Sewell, CPA, is joining the company as chief financial officer, senior vice president and treasurer for Cincinnati Financial and chief financial officer for all subsidiaries, effective May 31, 2011. He brings more than 25 years of property casualty insurance accounting experience with Deloitte & Touche LLP, the company’s registered public accounting firm. He was lead client service partner for Cincinnati Financial’s audits from 1998 to 2003. As lead partner in the Cincinnati office’s insurance practice for 13 years, Sewell was responsible for all aspects of service and for issue resolution. He is experienced in conversions to International Financial Reporting Standards, debt issuance, acquisitions and divestitures.

Chief Financial Officer Steven J. Johnston noted, “Ken was exactly the CEO we needed to emerge stronger and more stable from a period of unprecedented challenge for our company, our industry and our country. As he takes the chairman role and passes to me the day-to-day management duties, I deeply appreciate the progress he has led and the counsel he and Jack will continue to provide. I will work with them, my executive team and our associates to further the company’s agent-centered mission and strategic initiatives. We will continue and step up our work in progress to improve agents’ ease of doing business by leveraging technology and data; offering new products and services to enhance their marketing opportunities; and improving underwriting results by increasing pricing precision, streamlining workflows and carefully managing expenses.

“As we continue to press on these initiatives, important next steps will be to unify our approach and consolidate operational gains. We are preparing to take those steps by bringing all of our business insurance departments under J.F.’s direction, allowing us to serve each agency through an integrated team with increased customer focus, synergy and accountability. We anticipate similar benefits from Teresa’s unified oversight of our data modeling activities for pricing, reserving and financial analysis.

“The company has benefited for some time from Lisa’s legal advice and coordination of corporate legal, compliance and governance activities. In formalizing her general counsel title and appointing her to the complementary position of corporate secretary, the board recognizes the company’s increasing need for this expertise.

“We believe that Mike, our new CFO, will be a great addition to our executive team, thanks to his knowledge of our operations, his accounting expertise in insurance as well as other types of organizations, and his proven communication skills and commitment to quality client service.

Johnston concluded, “Our leadership team and all of our executives aspire to heighten the company’s competitive points of difference and achieve industry-leading growth and profitability. Our foundation is strong, giving new generations every opportunity to prosper and add value.”

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