CNA Commences Rights Offering.

Business Editors

CHICAGO--(BUSINESS WIRE)--Aug. 24, 2001

CNA Financial Corporation (NYSE: CNA) announced today that it has commenced the rights offering previously announced on August 2, 2001. CNA will issue a total of approximately 40,327,500 shares of its common stock at a price of $25.00 per share in the rights offering.

CNA's common shareholders of record on August 23, 2001 will receive .22 of a right for each share of common stock they own as of 5:00 p.m. (EST), rounded up, if necessary, to the next whole right. Each right entitles the holder to purchase one share of CNA common stock in the basic subscription and to oversubscribe for additional shares of common stock that are not subscribed for by other holders of rights through the exercise of their basic subscription privilege, subject to availability and proration. Loews Corporation, the owner of approximately 87% of CNA's outstanding common stock, has agreed to exercise all of its rights and to oversubscribe the rights offering in full, subject to customary closing conditions. As a result, all shares being offered in the rights offering will be sold.

Rights certificates, the prospectus and other documents relating to the rights offering will be mailed to shareholders on or about August 27, 2001. The rights offering will expire on September 14, 2001. Rights are transferable and will trade on the New York Stock Exchange under the symbol "CNA.RT" through September 13, 2001. A copy of the prospectus may be obtained from Georgeson Shareholder Communications by calling [phone], if you are not a bank or broker, or [phone], if you are a bank or broker.

CNA is a leading insurance organization serving businesses and individuals with a broad range of insurance products and insurance-related services. Since 1897, CNA has built on a foundation of financial strength, stability and commitment to customers and business partners. Visit CNA at www.cna.com. CNA is a registered service mark, trade name, and domain name of CNA Financial Corporation.

FORWARD LOOKING STATEMENT

The statements contained in this press release, which are not historical facts, are forward-looking statements. When included in this press release, the words "believes," "expects," "intends," "anticipates," "estimates," and similar expressions are intended to identify forward-looking statements. Forward-looking statements, by their nature, are subject to a variety of risks and uncertainties that could cause actual results to differ materially from the results expected in the forward-looking statement. Many of these risks and uncertainties cannot be controlled by CNA Financial Corporation (the "Company"). Some examples of these risks and uncertainties are: general economic and business conditions; changes in financial markets such as fluctuations in interest rates, credit conditions and currency, commodity and stock prices; changes in foreign, political, social and economic conditions; regulatory initiatives and compliance with governmental regulations, judicial decisions and rulings; the impact of competitive products, policies and pricing; product and policy demand and market responses; development of claims and their impact on loss reserves; the performance of reinsurance companies under reinsurance contracts with the Company and its subsidiaries; results of financing efforts; changes in the composition of the loss reserves of the Company and its subsidiaries and the possibility of future increases in reserves; limitations upon the Company's ability to receive dividends from its insurance subsidiaries imposed by state regulatory agencies and minimum risk-based capital standards established by the National Association of Insurance Commissions; the possibility of downgrades in the Company's or its subsidiaries' ratings by ratings agencies and changes in rating agency policies and practices; the actual closing of contemplated transactions and agreements; and various other matters and risks detailed in the Company's Securities and Exchange Commission filings. These forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.