2010 Second-Quarter Letter to Shareholders
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Inside Cincinnati

The subsidiary board executive committees announced two officer changes during their regular meeting on August 13, 2010. Directors elected Tony Dunn, CPCU, CPA, CIA, to vice president of The Cincinnati Insurance Company and its two standard market subsidiaries and The Cincinnati Life Insurance Company. Tony has led our Internal Audit department since 2007 and contributed in this area since 2002.

Directors also elected Frank Obermeyer, CPA, CISA, PMP, to assistant vice president of the same companies effective September 7, when he joins us to fill the position of internal audit manager. Frank brings more than 16 years of experience, most recently working as a senior manager with enterprise risk services for Deloitte & Touche LLP.

Since our last Letter to Shareholders, these associates merited promotions:

The Cincinnati Insurance Companies:

Agency Service & Field Support
Senior Manager — Shelly Zorb, AIM

Senior Account Records Specialist
Amy Gamble, AIS

Bond & Executive Risk
Systems Coordinator — Greg Aumann

Underwriting Director — Mark Kleemeier

Senior Underwriting Specialist
Laura Lee Gayfield, CPCU, ARM

Underwriting Specialists — Ben Bessler, RPLU;
Sean Ernst

Underwriting Superintendent — Mike Noe

Senior Underwriter — Craig Cashen

Field Underwriters — Bradley Purnhagen,
John Junker III

Commercial Lines
Senior Underwriting Managers
Scott Ratliff, AIM;
Walter Sauerwein, CPCU, AIM, AU

Underwriting Managers
Douglas Greer, AIM, AIS, AINS;
Joe Yannetti, CPCU, AIM;
Scott Zemberi, CPCU, AIM, ARe, AU

Underwriting Directors
Amy Schoch; Donna Offen

Chief Underwriting Specialists
Lynnette Beach, AU; Chris Byers, AU;
Dana Brown, AIM; Marcie Caudill;
Kevin Hagedorn; Jason Laub, AIM;
Nancy Liebowitz, CPCU, AU;
Kurt McKenna, AIS; Brad McLaughlin;
Matt Miller, CPCU, AIM, API, AU;
Dawn Woodrick, CPCU

Underwriting Superintendents
Michele Baker, AIS; Jennifer Bartos, AU;
Connie Caudill, AIM, AIS; Alan Everson;
Angela Halpin, CPCU, AIM, API, ASLI, AU;
Seddrick Hubbard, AIS;
Stephanie McLaughlin; Brett Meadors;
Scott Meyer, ARM; Matthew Miller;
Mike Mirizzi, CPCU; Mary Muench;
Jim Murphy; Darren Richter, ARM;
Jeffrey Sousa;
Damian Stark, CPCU, AIM, API, AU;
Mary Thomas; Sherell Walker

Underwriting Specialists — Dumesha Dubose;
Kristen Campbell, CPCU; La'Brina Love;
Stephanie Miller, AIS, AU; Sean Patrick, AU;
Ryan Rhoads; Emily Sullivan;
Brian Sunderman, AIC, AIM

Systems Support Supervisor — Karen Oliver

Senior Underwriters — Lindsey Dean; Lauren Dowd;
Joy Duesing; Jinene Enders; Kevin Fancher, AIM;
Matthew Fullan; Noah Goodwin, AIM, AU;
Bridget Hamann; Sara Hauenstein; Tia Hauser;
Venetta Jones; Jim Koerner; Erin Lievestro;
Samantha Logan; Christine Montgomery;
David Noonan; Angela Ogden; Trish Perry;
Melissa Piecuch; Justin Roberts; Jennifer Santel;
David Siebert; Sarah Skidmore, AU;
Gerald Southard, AU; Kelly Thompson;
Rosemarie Thrasher; Kasey Trimboli

Corporate Accounting
Property/Casualty Accountant — Eric Lievestro

Senior Manager
Michael Wood, CPCU, AIAF, CPA, CIA, CFE

Direct Bill Accountant — Rob Gross

Field Claims
Field Claims Coordinator
Wanda Perlinski

Field Claims Superintendents
Ted Ellis, AIC, AIM; Mark Kovacs, AIC;
John Maris, AIC;
Jay McElhaney, AIC, AIM, AIS, ARM

Senior Claims Representatives
Matt Brown, AFSB, AIC, APA, API, AU, CLU;
Darren Brubacher; Scott Campbell, AIC, FLMI;
Dave Crews, AIC; Julie Didier, AIC;
Terri Dodrill, AIC; Justin Eskew, AIC, AIM, AIS;
Connie Garrett; Amy Mathews, AIC;
Kelly Sacks, AIC; Kelly Ward, AIC;
Vicki Wisniewski

Senior Claims Specialists Lisa Dill;
Lori Dixon, AIC; Adam Goerges, AIC;
John Hayes; Cory Jensen, AIC;
Erica Jones, AIC; Jeff Kendrick, AIC;
Kevin Niswonger, AIC; Joe Pavlik, AIC;
Amanda Porter; Todd Solon, AIC;
Kelly Lynn Ward, AIC; Carl Wolf, AIC

Claims Specialists Leah Ashley;
Brian Battaglia; Joey Burke, CPCU, AIC, AU;
Theresa Cain, AIC; Edward Fowler;
Melissa Gascot, AIC; Kirk Geise;
Trisha Haskin; Jessica Hawkins;
Marcie Jelf, AIC; Leslie Mann;
Christopher Mitchell, AIC; Scott Molnar;
Stephanie Osterhage; Steve Putney;
Cathy Scharpf; Terry Sizemore, AIC;
Jim Smith; Phillip Sorrentino; Derick Splitt;
Brian Williams; Mark Workman

Headquarters Claims
Superintendent, Operations
Anne Balfour, AIC

Superintendent, Casualty Claims
Steve Fogle

Superintendent, Claims Recovery
Theresa Guy, AIC

Associate Superintendent, Claims Operations
Richard Osborn, AIM

Associate Superintendents, Casualty Claims
Hank Faglie, Jr., CPCU, AIC, AIM;
Gary Gluck, AIC, AIM; Dan Mullen

Associate Superintendent, Executive Risk Claims
Ben Sanderson

Supervisor, Casualty Claims Paul Braden

Supervising Examiner, Casualty Claims
Brooke Bruce, AIC

Supervising Examiner, Workers' Compensation
Leslie Rodgers

Senior Claims Examiner Maureen Walsh

Claims Examiner Katy Comer, AIC, AIS, AU

Claims Examiner, Workers' Compensation
Michelle Estell, AIC, AIS

Information Technology
Senior Group Managers
Jason Hoog, AIM, AIT; Laura Mize

Group Managers Paul Deffinger;
Diane Roberts; Karen Sanders;
Donna Williams

Senior Project Manager
Carolyn MacDonald

Project Manager Tina Williams

Application Architect — Alok Soni

Senior Architect — D.J. Owens

Senior Systems Engineer John Kelly

Senior Systems Analyst Patty Deaton

Systems Engineer Mary Pero

Database Engineer Gary Trenker, Jr.

Information Technology - Continued
Senior Database Administrator
Michael Klare

Senior Systems Programmer
Mike Schmalfuss

Senior Programmer Analysts
Maggie Biederman; Sunil Gangireddygari;
Casey Linnig; Radha Reddy;
Brenda Rommel

Senior Programmer Debbie Maita

Systems Administrators Dexter Grant;
Shawn Kennedy; Brian Welch

Senior Project Analyst Lisa Austin

Specialists Israel Carter; Kate Sander, AIS;
Doronna Vickers

Senior Network Administrators
Bill Debbane; Paul Holden

Senior Analyst Nathan Kellett

Senior IT Developer LaTasha Johnson

IT Developer James Foster; Judy Merritt

Internal Audit
Internal Auditor Specialist
Jerry Braun, CPCU

Internal Auditor
Joseph Haas, CPCU, AIM, API, ARe, CIA

Learning & Development
Learning Consultants
Jason Estes; Brian Roach, AINS

Legal Trial Division
Associate Counsel Lou DeMarco

Loss Control
Loss Control Field Directors
Charley Monahan, ARM;
Denny Ray, CPCU, AIM, ARM, CRM;
Randal Tuszka

Senior Loss Control Representative
Mike Mitchell

Senior Loss Control Technical Consultant
Chris Sewell, ARM

Machinery & Equipment Specialties Field
Senior Machinery & Equipment Specialist
Mike Miller

Personal Lines
Senior Underwriting Manager
Jen Atkinson, AIM, API

Senior Managers, Personal Lines Support
Christopher Gilbert, CPCU, AIM, API;
Susanne Stewart, CPCU, API

Chief Underwriting Specialist
Carrie McKitrick, CPCU, AIM, AIT

Underwriting Superintendent Stephanie Borg

Senior Personal Lines Marketing Representatives
Scott Fitzharris, CPCU, AIM, API, CIC; Dave Foster

Underwriting Specialists — Scott Cupp, CPCU, API;
Melissa James, API; Sean Jones; Danielle Willman

Senior Underwriters — Chris Collins, API;
Scott Hirsch, API; David Theobald, CPCU, API;
Carolynn Billman; Brett Dailey;
Carolan Deutch, API; Michael Smith

Systems Specialists — Carrie Harper;
Denise Slatter; Karen Wright, API

Diamond Specialist — Leslie Fredricks

Senior Diamond Support Analysts
Mandi Adkins, API; Kay Owens, API;
Linda Wilkirson, AIM, AIT, API

Diamond Support Specialists Cindy Noll

Premium Audit Field
Field Audit Superintendent
Matt Hambright, CPCU, APA

Sales Field
Field Director
Roger Whitescarver II, AIS, CIC

Regional Directors
Tye Fickling, CPCU, ASLI, CIC, CRM;
Shawn Murphy, CPCU, AU;
Curt Shumaker, CPCU, AU, CIC

State Agents Brian Bessler;
Russ Blessing, AIS; Mike Henry;
Aaron Hunsinger; Brad Kenney;
Mark Lauman; Ken Mattison;
Brian Moore, API

Special Investigations Field
Associate Regional Manager
Joe Cunningham

Staff Underwriting
Associate Actuary Rajesh Thurairatnam

Senior Actuarial Analyst — Andy Kwon

P&C Actuarial Analyst Daniel Price

Senior Filings Specialist Jean Sterwerf

Rate Filing Specialist Jason Campbell

Senior Rate Analyst Kamila McKnight, AIM, API

Filings Specialist Allison Timmers

The Cincinnati Life Insurance Company:

Assistant Director, Advanced Sales
Tyson Dailey, CPCU, AU, ChFC, CLU

Senior Life Regional Director
Doug Stammler, CLU

Life Field Directors Dane Albright, ChFC, CLU;
Norm Alms, CLU

Senior Worksite Marketing Field Representative
Cindy Stubblefield, FLMI, ACS, AIAA

Senior Superintendent, Reinsurance
Nieata Bailey, ACS, ARA

Underwriting Superintendent
Jeremy Singer, CLU, FALU, FLMI

Underwriting Specialist Gary Miller

The Cincinnati Specialty Underwriters Insurance Company:

Underwriting Manager, Excess & Surplus
Joe Dempsey, AIM

Superintendent, Claims Excess & Surplus Lines
Richard Hill

Underwriter Directors Tracy Ernst;
Tammy Lienberger, CPCU

Underwriting Superintendent
Angie Mosher, AIC, ASLI

Underwriting Specialist
Brian Rawlings, AIM, AIS, ASLI, AU

Senior Underwriter Tim Mikesell, ASLI, AU


Learning & Development

Independent agents and their staff use different software for each carrier they work with; understanding the details of each application can be a challenge. To help our agents understand the many features of our key commercial lines systems, we are taking the training to them. This year, Learning & Development associates are hosting hands-on, laptop-based classroom automation seminars. Reviewing a sample commercial account through the entire process, agents learn:

  • how to use each type of software needed to rate, quote and issue a policy
  • the tips and shortcuts to make business processing even easier
  • how real-time offerings through CinciBridge® work
  • more about billing options through CinciBill™
  • how to access claims data

We encourage and reward associates to continue their professional insurance education, earning credentials by meeting high academic, ethical and length-of-experience standards. Congratulations to associates who completed a series of courses to earn a major designation: Scott Cupp, Melissa Kamp, Amanda Klaus, Lynne Leslie, Chris Lewis, Wayne Pinney, Tom Ruth, David Theobald and Julia Wilking, Chartered Property Casualty Underwriter (CPCU); Matt Broerman, Bernie Kistler and Sharon Taylor, Chartered Life Underwriter (CLU); Molly Grimm, Certified Equity Professional (CEP); Mindy Bockewitz, Christopher Coffaro, Ken Mattison and Todd Ward, Certified Insurance Counselor (CIC); Jeremy Singer, Fellow Associate Life Underwriter (FALU).

The Above and Beyond the Call (ABC) Award recognizes exemplary productivity, service and quality in exceptional associates. Congratulations to quarterly 2010 ABC Award recipients Lori DeBord, API, lead data service coordinator, Staff Underwriting; Erica Ostendorf, senior programmer analyst, IT Life Financials; and Sandy Prewitt, senior switchboard operator, Switchboard.

Public Responsibility

Congress recently passed the Dodd-Frank Act, H.R. 4173, to address concerns with regulation of the banking and investment sectors of the financial services industry. Although the legislation left state regulation of insurance mostly intact, several provisions could impact our industry: creating a consumer financial protection agency; giving the Treasury Department limited preemptive authority over state insurance regulation; creating a federal systemic risk regulator; and creating a federal resolution authority for nonbank financial institutions.

How these changes will ultimately affect consumers and the industry will depend on how the federal agency rulemaking process unfolds. Your company will urge federal regulators to consider the strengths of state-based insurance regulation as they implement the Dodd-Frank Act:

  • State insurance regulators have a proven track record of protecting the interests of consumers which vary from state to state because of diverse geographic, legal, climatic and economic conditions.
  • Granting any preemptive authority over state insurance regulation to the Treasury Department subjects the insurance industry to the anti-competitive forces of dual regulation.
  • The insurance industry is not prone to systemic risk; our unique nature actually protects against the risk of a systemic failure.
  • State insurance guaranty funds provide an efficient system for resolving and winding down insolvent insurers. A federal resolution authority would subject insurers to dual assessments and impose cross-subsidies for failures in other industries.



This report contains forward-looking statements that involve potential risks and uncertainties. For factors that could cause results to differ materially from those discussed, please see the most recent edition of our safe harbor statement under the Private Securities Litigation Reform Act of 1995. To view or print the edition in effect as of this report's initial publication date, please view this document as a printable PDF.