8-KOther EventsExhibits & Filings

CINCINNATI FINANCIAL CORP 8-K Report, Temporary Suspension of Trading Under Employee Benefit Plans (Jun 17, 2011)

Filed June 17, 2011For Securities:CINF

Summary

Cincinnati Financial Corporation (CINF) filed this Form 8-K on June 17, 2011, to announce a temporary suspension of trading under its employee benefit plans, specifically a "blackout period" for its stock fund. This period is necessary to facilitate a conversion from unitized accounting to share accounting and to transition the stock fund to an Employee Stock Ownership Plan (ESOP). The blackout period is scheduled to occur during the calendar week of July 17, 2011. During this time, participants in the company's Tax-Qualified Savings Plan and Top Hat Savings Plan will be unable to make transactions involving their plan accounts. Additionally, directors and executive officers will face trading restrictions on the company's common stock, in accordance with Section 306 of the Sarbanes-Oxley Act and SEC Regulation BTR. Investors should note that while this filing primarily concerns internal plan administration, the necessity of such a period can sometimes signal upcoming corporate actions or structural changes, though no specific details beyond the plan transition are provided here.

Key Highlights

  • 1Announcement of a "blackout period" for CINF's employee stock fund.
  • 2The blackout period is scheduled to occur during the calendar week of July 17, 2011.
  • 3Reason for the blackout: conversion from unitized accounting to share accounting and transition to an Employee Stock Ownership Plan (ESOP).
  • 4Plan participants will be temporarily unable to make transactions in their stock fund accounts.
  • 5Directors and executive officers will be subject to trading restrictions on CINF common stock per Sarbanes-Oxley Act regulations.
  • 6Information regarding the actual start and end dates of the blackout period can be obtained from the Corporate Secretary.
  • 7The filing also includes a 'Safe Harbor' statement outlining various business risks and uncertainties.

Frequently Asked Questions

A blackout period is a temporary suspension of trading activities for participants in an employee benefit plan. In this case, it affects CINF's stock fund, meaning plan participants cannot make transactions involving their investments in the company's stock during this time.

The company is implementing the blackout period to facilitate administrative changes. Specifically, it's to convert the stock fund from unitized accounting to share accounting and to transition the fund to an Employee Stock Ownership Plan (ESOP).

No, this blackout period primarily affects participants in Cincinnati Financial Corporation's employee benefit plans (Tax-Qualified Savings Plan and Top Hat Savings Plan). Additionally, directors and executive officers of the company are subject to separate trading restrictions on their personal holdings of company stock during this time, as mandated by the Sarbanes-Oxley Act.

The blackout period is scheduled to occur during the calendar week of July 17, 2011. For the exact start and end dates, interested persons can contact the company's Corporate Secretary.