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Cincinnati Financial replaces letter of credit facility


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Cincinnati Financial replaces letter of credit facility

Cincinnati Financial Corp. subsidiary Cincinnati Insurance Co. entered into a reimbursement agreement with Bank of Nova Scotia for a new unsecured letter of credit facility that will allow the insurance company to secure letters of credit totaling up to $25 million.

The facility will support the collateral obligations of Cincinnati Insurance's assumed reinsurance division. The agreement requires the insurance company to reimburse Bank of Nova Scotia on demand any amounts drawn under a letter of credit issued by the bank.

The agreement will replace an existing letter of credit facility entered into on April 25, 2016, with U.S. Bank. The U.S. Bank facility will be terminated as soon as all regulatory approvals have been received.