Cincinnati Financial Corporation (CFC) serves up a whole
menu of insurance -- plain and simple or with extras if
you like. The company's flagship Cincinnati Insurance
(operating through three property/casualty subsidiaries)
sells commercial property, liability, excess and surplus, auto,
bond, and fire insurance; personal lines include homeowners,
auto, and liability products. Subsidiary Cincinnati Life sells
life, disability income, and annuities. The company's CFC
Investment subsidiary provides commercial financing, leasing, and
real estate services to its independent insurance agents. Its CSU
Producers Resources offers insurance brokerage services to
independent agencies. The Schiff family formed CFC in 1968.
The company maintains a force of some 1,400 field associates who
provide local service to the distributing independent agencies
and policy holders. Its claims management system employs a team of
field claims associates and a special investigations unit assigned
to detect fraud.
CFC markets its policies in 49 states and the District
of Columbia. The company writes some 20% of its business in Ohio,
and is strong in Illinois, Indiana, and Pennsylvania. Its
commercial lines segment targets primarily small to midsized
businesses. CFC has tied its growth to expanding
the territories in which it markets, and increasing the number
of new agencies with which it strikes new relationships.
All segments of the business reported growth in 2013 and the
company declared a 10% increase in revenue, up to $4.5 billion from
$4.1 billion. Investment gains and fewer natural disasters, and
related pay-outs, gave CFC a 23% jump in net income for the year.
All of that lead to a $158 million bump in cash from
Going forward, the company plans to wring more profit out of
policies by raising deductibles and conducting more site
inspections of properties it insures. CFC also works on developing
new products and helping its independent and captive agents better
market existing policies.