Cincinnati Financial CorporationCINF

Morningstar Rating

Stock Research and Analysis

by Drew Woodbury

Cincinnati Financial was founded by independent insurance agents in order to better service their needs. This concept has become an essential part of the company's DNA, leading it to cater to the needs of agents in order to receive preferential treatment Read more

Bulls Say

Cincinnati has rewarded shareholders over the long term with its savvy investments in common stocks.

By focusing on smaller, regional commercial insurance Cincinnati may be able to avoid some competition from national carriers.

As agents work longer with Cincinnati, they place more of their business with the company. Cincinnati is the number-one or -two carrier by volume for 75% of the agencies that have been with the company for more than five years. Read more

Bears Say

Many of the large, national carriers that Cincinnati competes against have significantly more capital and pricing power.

By reducing its equity exposure, Cincinnati won't benefit as much from a market rally.

A favorable agency reputation doesn't necessarily translate into superior profitability. Read more

Strategy

By satisfying the demands of independent agents, Cincinnati hopes to become the first choice when brokers shop policies for their customers. While traditionally specializing in the Midwest, the firm Read more

Management

We think stewardship at Cincinnati is good, all things considered. High ownership rates help align the interests of executives and directors with those of common shareholders. Chairman John Schiff owns nearly 8% of outstanding shares, while his brother Read more

Profile

Cincinnati Financial primarily sells commercial property-casualty insurance with a smaller personal lines exposure. The firm also has a minute life insurance operation. Read more

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