CNA Clarifies Employment Needs of Combined CNA-Continental Insurance.

CHICAGO--(BUSINESS WIRE)--May 4, 1995--The CNA Insurance Companies today clarified incorrect and misleading published reports that 3,000-6,000 positions would be eliminated mostly at Continental Insurance Company offices in New Jersey and New York.

When the acquisition of The Continental Corporation was announced in December 1994, CNA said that the staff reductions would occur nationwide and over a 12-month period. In December 1994, the combined work force was 21,000, Continental had 8,000 employees and CNA had 13,000.

"CNA is approaching staff reductions with a careful, not arbitrary, business process redesign," according to a company spokesperson. "We are evaluating all positions in all locations, combining and consolidating them where it makes the best business sense and eliminating those that do not directly improve the quality of our service offerings. To this day, we do not know precisely which locations and which people will be affected.

"The CNA work force level is dependent on the premium volume and business plans of the combined business and staff units. We anticipate that the work force will be reduced to between 15,000 and 18,000 employees over the next 12 months. As of April 30, 1995, the combined total was about 20,000."

The merger is expected to be completed on May 9 following a Continental shareholder vote and approval by state regulatory agencies.

CONTACT: CNA Insurance Companies

Bill Shaffer, 312/822-4195