Cincinnati Financial Refuses to Expense Stock Options

At Cincinnati Financial Corp.’s annual shareholders’ meeting April 19, 2003, shareholders re-elected six directors to the board and turned down a shareholder proposal to expense the cost of stock options on the income statement.

More than 70 percent of shareholders who cast votes agreed with the CFC board’s view that the expensing of stock options in financial statements should await final regulatory rules.

Cincinnati Financial Corporation offers property and casualty insurance through the Cincinnati Insurance Co., the Cincinnati Indemnity Co. and the Cincinnati Casualty Co.