CNA Financial Announces 2nd Quarter 2002 Results.Business Editors CHICAGO--(BUSINESS WIRE)--Aug. 8, 2002 CNA Financial CNA Financial Corporation (NYSE: CNA) is a financial corporation based in Chicago, Illinois, United States, and noted for its 600 foot tall red headquarters building there. Its principal subsidiary, Continental Casualty Company (CCC) was founded in 1897. Corporation (NYSE NYSE See: New York Stock Exchange :CNA (Certified NetWare Administrator) See Novell certification. ) today reported second quarter 2002 net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $140 million, or $0.62 per share, compared with a net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. from continuing operations of $2,077 million, or $11.32 per share, reported in the second quarter of 2001. The second quarter 2002 operating results were primarily driven by strong rate achievement and growth in new business, which led to an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. 10-point improvement in the gross accident year loss ratio for the primary property-casualty businesses. The U.S.-based reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. operation and the life and group businesses also contributed to improved results. In addition, operating results benefited from higher investment income, including significantly improved limited partnership investment performance. Net operating income from continuing operations in the second quarter of 2002 increased $94 million, or $0.36 per share, over the same quarter in 2001, excluding the impact of the second quarter 2001 significant items. The significant items included in the reported results for the second quarter of 2001 were related to prior year reserve strengthening, restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and other related charges and corporate aggregate reinsurance treaties Reinsurance Treaty (June 18, 1887) Secret agreement between Germany and Russia. Arranged by Otto von Bismarck after the collapse of the Three Emperors' League, it provided that each party would remain neutral if either became involved in a war with a third nation, and that . Net operating income from continuing operations for the first six months of 2002 was $251 million, or $1.12 per share, compared with a net operating loss from continuing operations of $1,958 million, or $10.68 per share, for the same period in 2001. Net income for the second quarter of 2002 was $35 million, or $0.16 per share, compared with a net loss of $1,762 million, or $9.61 per share, for the same quarter 2001. Excluding the impact of the significant items, net income in the second quarter of 2001 was $361 million, or $1.97 per share. Included in the second quarter 2002 results is $190 million of after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. losses related to the Company's investment portfolio. For the first six months of 2002, net income was $113 million, or $0.51 per share, compared with a net loss of $1,467 million, or $8.00 per share, for the same period in 2001. "The second quarter 2002 results continue to show that our businesses are building momentum. In the Property-Casualty Operations, the overall 6% increase in net written premium does not fully reflect the rate achievement and new business momentum because of the impact of strategies to exit certain unprofitable classes of business," said Bernard Ber·nard , Claude 1813-1878. French physiologist noted for his study of the digestive and nervous systems. L. Hengesbaugh, Chairman and Chief Executive Officer of the CNA insurance companies.
Results for the Three Months Ended June 30, 2002
----------------------------------------------------------------------
Net Income (Loss) Components Per Share Results Available
($ millions) to Common Stockholders
----------------------------------------------------------
Adjusted Adjusted
2002 2001(a) 2001 2002 2001(a) 2001
----------------------------------------------------------------------
Net operating
income
(loss)(b) $ 140 $ 46 $ (2,077) $ 0.62 $ 0.26 $ (11.32)
Net realized
investment
(losses)
gains (105) 312 312 (0.46) 1.70 1.70
----------------------------------------------------------
Income (loss)
from
continuing
operations 35 358 (1,765) 0.16 1.96 (9.62)
Income from
discontinued
operations(c) - 3 3 - 0.01 0.01
======================================================================
Net income
(loss) $ 35 $ 361 $ (1,762) $ 0.16 $ 1.97 $ (9.61)
======================================================================
Results for the Six Months Ended June 30, 2002
----------------------------------------------------------------------
Net Income (Loss) Components Per Share Results Available
($ millions) to Common Stockholders
----------------------------------------------------------
Adjusted Adjusted
2002 2001(a) 2001 2002 2001(a) 2001
----------------------------------------------------------------------
Net operating
income
(loss)(b) $ 251 $ 175 $ (1,958) $ 1.12 $ 0.96 $ (10.68)
Net realized
investment
(losses)
gains (103) 549 549 (0.45) 3.01 3.01
----------------------------------------------------------
Income (loss)
from
continuing
operations 148 724 (1,409) 0.67 3.97 (7.67)
(Loss) income
from
discontinued
operations(c) (35) 3 3 (0.16) 0.01 0.01
Accounting
change(d) - (61) (61) - (0.34) (0.34)
======================================================================
Net income
(loss) $ 113 $ 666 $ (1,467)$ 0.51 $ 3.64 $ (8.00)
======================================================================
(a) Adjusted 2001 results exclude the impact of the second quarter
2001 reserve charge, corporate aggregate reinsurance covers, and
restructuring and other related charges. See the tables below
titled "After Tax Significant Items Included in Net Operating
Income (Loss)" for additional information.
(b) Net operating income excludes net realized investment gains and
losses, income or loss from discontinued operations and the
cumulative effect of changes in accounting principles.
(c) During the first quarter of 2002, CNA Vida, CNA's Chilean-based
life insurance company, was sold and recorded as discontinued
operations in accordance with SFAS 144, Accounting for the
Impairment or Disposal of Long-Lived Assets.
(d) Adoption of SFAS 133, which was a change in accounting for
derivative instruments and hedges.
Net Operating Income (Loss) by Segment
----------------------------------------------------------------------
Three Months Ended June 30 Six Months Ended June 30
--------------------------------------------------------
Adjusted Adjusted
($ millions) 2002 2001(a) 2001 2002 2001(a) 2001
----------------------------------------------------------------------
Standard Lines $ 37 $ 56 $ (574) $ 46 $ 123 $ (509)
Specialty
Lines 42 (23) (303) 77 22 (260)
--------------------------------------------------------
Total P-C
Operations 79 33 (877) 123 145 (769)
CNA Re 27 16 (369) 68 34 (351)
--------------------------------------------------------
Total P-C
Segments 106 49 (1,246) 191 179 (1,120)
Group
Operations 19 15 15 34 30 30
Life
Operations 37 36 25 72 78 67
Corporate and
Other (22) (54) (871) (46) (112) (935)
======================================================================
Net operating
income (loss) $ 140 $ 46 $ (2,077) $ 251 $ 175 $ (1,958)
======================================================================
(a) Adjusted 2001 results exclude the impact of the second quarter
2001 reserve charge, corporate aggregate reinsurance covers, and
restructuring and other related charges. See the tables below
titled "After Tax Significant Items Included in Net Operating
Income (Loss)" for additional information.
Property-Casualty Net Written Premiums
----------------------------------------------------------------------
Three Months Ended June 30 Six Months Ended June 30
---------------------------------------------------------
Adjusted Adjusted
($ millions) 2002 2001(a) 2001 2002 2001(a) 2001
----------------------------------------------------------------------
Standard
Lines $ 1,050 $ 1,003 $ 375 $ 2,127 $ 1,926 $ 1,270
Specialty
Lines 578 528 516 1,124 956 933
---------------------------------------------------------
Total P-C
Operations 1,628 1,531 891 3,251 2,882 2,203
CNA Re 160 90 69 327 293 270
======================================================================
Total P-C
Segments $ 1,788 $ 1,621 $ 960 $ 3,578 $ 3,175 $ 2,473
======================================================================
(a) Adjusted 2001 results exclude the impact of the change in
estimated premium accruals related to the second quarter 2001
reserve charge and ceded premiums related to the corporate
aggregate reinsurance covers.
Group and Life Operations Net Earned Premiums
----------------------------------------------------------------------
Three Months Ended June 30 Six Months Ended June 30
--------------------------- -------------------------
($ millions) 2002 2001 2002 2001
----------------------------------------------------------------------
Group Operations $ 819 $ 809 $ 1,724 $ 1,618
Life Operations 235 229 475 443
======================================================================
Property-Casualty Calendar Year Loss Ratios
----------------------------------------------------------------------
Three Months Ended June 30 Six Months Ended June 30
------------------------------------------------------
Adjusted Adjusted
2002 2001(a) 2001 2002 2001(a) 2001
----------------------------------------------------------------------
Standard Lines 78.1% 72.9% N/A 77.6% 73.4% 154.6%
Specialty Lines 70.5 70.9 159.9 70.9 70.2 114.2
Total P-C
Operations 75.5 72.2 338.1 75.3 72.3 133.1
CNA Re 79.5 75.8 479.4 62.4 75.6 267.2
Total P-C
Segments 75.8 72.6 376.0 74.2 72.6 153.3
Total including
Corporate 81.4% 79.8% 336.0% 80.1% 79.5% 169.8%
======================================================================
(a) Adjusted 2001 results exclude the impact of the second quarter
2001 reserve charge, corporate aggregate reinsurance covers, and
restructuring and other related charges. See the tables below
titled "After Tax Significant Items Included in Net Operating
Income (Loss)" for additional information.
Property-Casualty Calendar Year Combined Ratios
----------------------------------------------------------------------
Three Months Ended June 30 Six Months Ended June 30
-------------------------------------------------------
Adjusted Adjusted
2002 2001(a) 2001 2002 2001(a) 2001
----------------------------------------------------------------------
Standard Lines 109.4% 105.9% N/A 110.0% 107.5% 233.0%
Specialty
Lines 102.7 118.6 210.4 103.3 112.4 158.2
Total P-C
Operations 107.0 110.3 475.4 107.7 109.2 193.0
CNA Re 106.8 113.9 522.9 95.5 113.9 308.5
Total P-C
Segments 107.0 110.6 488.1 106.6 109.7 210.5
Total including
Corporate 108.3% 110.2% 397.6% 108.1% 110.3% 212.5%
======================================================================
(a) Adjusted 2001 results exclude the impact of the second quarter
2001 reserve charge, corporate aggregate reinsurance covers, and
restructuring and other related charges. See the tables below
titled "After Tax Significant Items Included in Net Operating
Income (Loss)" for additional information.
The following two tables reflect the after-tax impact of certain
significant items included in 2001 net operating income for the three
and six month period ended June 30, 2001. The discussion of business
operating highlights excludes the impact of these items in order to
make the prior period comparisons more meaningful.
After-Tax Significant Items Included in Net Operating Income (Loss)
Three Months Ended June 30, 2001
----------------------------------------------------------------------
($ millions) Standard Specialty P-C CNA Re P-C
Lines Lines Ops Segments
----------------------------------------------------------------------
Net operating
(loss)
income $ (574) $ (303) $ (877) $ (369) $ (1,246)
Reserve
charge 619 277 896 384 1,280
2001
corporate
aggregate
reinsurance
covers 7 2 9 1 10
Restructuring
and other
related
charges 4 1 5 - 5
======================================================================
Total
adjustments 630 280 910 385 1,295
======================================================================
Adjusted net
operating
income
(loss) $ 56 $ (23) $ 33 $ 16 $ 49
======================================================================
After-Tax Significant Items Included in Net Operating Income (Loss)
Three Months Ended June 30, 2001
----------------------------------------------------------------------
($ millions) Group Life Corporate
Ops Ops and Other Total
----------------------------------------------------------------------
Net operating
(loss)
income $ 15 $ 25 $ (871) $ (2,077)
Reserve
charge - - 799 2,079
2001
corporate
aggregate
reinsurance
covers - - (2) 8
Restructuring
and other
related
charges - 11 20 36
======================================================================
Total
adjustments - 11 817 2,123
======================================================================
Adjusted net
operating
income
(loss) $ 15 $ 36 $ (54) $ 46
======================================================================
After-Tax Significant Items Included in Net Operating Income (Loss)
Six Months Ended June 30, 2001
----------------------------------------------------------------------
($ millions) Standard Specialty P-C CNA Re P-C
Lines Lines Ops Segments
----------------------------------------------------------------------
Net operating
(loss)
income $ (509) $ (260) $ (769) $ (351) $(1,120)
Reserve
charge 619 277 896 384 1,280
2001
corporate
aggregate
reinsurance
covers 9 4 13 1 14
Restructuring
and other
related
charges 4 1 5 - 5
======================================================================
Total
adjustments 632 282 914 385 1,299
======================================================================
Adjusted net
operating
income
(loss) $ 123 $ 22 $ 145 $ 34 $ 179
======================================================================
After-Tax Significant Items Included in Net Operating Income (Loss)
Six Months Ended June 30, 2001
----------------------------------------------------------------------
($ millions) Group Life Corporate
Ops Ops and Other Total
----------------------------------------------------------------------
Net operating
(loss)
income $ 30 $ 67 $ (935) $(1,958)
Reserve
charge - - 799 2,079
2001
corporate
aggregate
reinsurance
covers - - - 14
Restructuring
and other
related
charges - 11 24 40
======================================================================
Total
adjustments - 11 823 2,133
======================================================================
Adjusted net
operating
income
(loss) $ 30 $ 78 $ (112) $ 175
======================================================================
Business Operating Highlights Standard Lines includes standard property and casualty coverages sold to small and middle market commercial businesses primarily through an independent agency distribution system, excess and surplus lines, as well as insurance and risk management products sold to large corporations. -- Net operating results improved $32 million for the second quarter of 2002 as compared with the same period in 2001. -- Reduced expenses for e-Business initiatives and increased net investment income contributed to the improved results. Specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. Lines provides a broad array of professional, financial and specialty U.S. and international property-casualty products and services. -- Net operating results improved $32 million for the second quarter of 2002 as compared with the same period in 2001. -- Reduced expenses for e-Business initiatives and increased net investment income contributed to the improved results. CNA Re operates as a reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. in the broker market for treaty products and in the direct market for facultative facultative /fac·ul·ta·tive/ (fak´ul-ta?tiv) not obligatory; pertaining to the ability to adjust to particular circumstances or to assume a particular role. fac·ul·ta·tive adj. 1. products. -- Net operating results improved $32 million for the second quarter of 2002 as compared with the same period in 2001. -- Reduced expenses for e-Business initiatives and increased net investment income contributed to the improved results. Group Operations provides a broad array of group life and health insurance products and services. -- Net operating results increased $4 million for the second quarter of 2002 as compared with the same period in 2001, primarily due to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. expenses and higher net investment income. Life Operations provides financial protection to individuals through a full product line of term life insurance, universal life insurance, long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. insurance, annuities and other products. Life Operations also provides retirement services products to institutions in the form of various investment products and administration services. -- Net operating results from continuing operations increased $1 million for the second quarter of 2002 as compared with the same period in 2001, primarily due to higher investment income, which was substantially offset by increased acquisition expenses. Corporate and Other segment contains certain corporate level expenses such as interest on corporate debt and losses and expenses related to the centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. adjusting and settlement of asbestos asbestos, mineral asbestos, common name for any of a variety of silicate minerals within the amphibole and serpentine groups that are fibrous in structure and more or less resistant to acid and fire. , environmental pollution and mass tort A mass tort is a civil action involving numerous plaintiffs against one or a few corporate defendants in state or federal court. As the name implies a mass tort includes many plaintiffs and law firms have used the mass media to reach possible plaintiffs. (APMT APMT Apartment APMT Association of Professional Music Therapists APMT Associate Program Manager for Test APMT Asia-Pacific Mobile Telecommunications Satellite, Pte Ltd (China) APMT Antenna Pattern Measurement Test APMT Advanced Point Mensuration Tool ) claims. In addition, this segment includes the results of certain run-off run-off n (in contest, election) → desempate m (= extra race); carrera de desempate run-off n (in contest, election) → insurance operations. -- Net operating results improved $32 million for the second quarter of 2002 as compared with the same period in 2001. -- Reduced expenses for e-Business initiatives and increased net investment income contributed to the improved results. Investment Highlights Net investment income increased $100 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern to $502 million pretax for the second quarter of 2002 as compared with the same period in 2001. This improvement is principally the result of a $41 million pretax increase in limited partnership income, and a $29 million reduction of interest cost related to certain reinsurance contracts. The interest cost on these contracts increased significantly in the second quarter of 2001 because of ceded losses resulting from the second quarter 2001 reserve charge. Net realized investment results decreased from a gain of $312 million after-tax in the second quarter of 2001 to a loss of $105 million after-tax in the second quarter of 2002. This change is due primarily to reduced gains on the sales of equity securities and increased losses on fixed maturity securities, driven by impairment losses of $190 million after-tax. Included in the second quarter 2002 realized loss Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. are after-tax investment writedowns of $84 million related to WorldCom The former name of MCI. Based in Jackson, MS, WorldCom, Inc. was a major, international telecommunications carrier. It was founded in 1983 by Bernard Ebbers as Long Distance Discount Service (LDDS), a reseller of AT&T WATS lines to small businesses. , Inc., $48 million related to Adelphia A`del´phi`a n. 1. (Bot.) A "brotherhood," or collection of stamens in a bundle; - used in composition, as in the class names, Monadelphia, Diadelphia, etc. s> Communications Corp., and $58 million related to other troubled credits, primarily in the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry. The remaining carrying amounts of the WorldCom, Inc. and Adelphia Communications Corp. securities are $33 million and $29 million, respectively. The second quarter 2001 contains a $320 million after-tax realized loss relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the planned disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of certain businesses. As part of the Company's total return investment management approach, the portfolio is actively managed relative to the underlying liabilities to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. after-tax investment returns. In managing its fixed income securities, the Company may accept lower future interest income in exchange for anticipated higher total investment returns after consideration of realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. . The Company views these gains as an acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. of future expected interest income. Accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) do not allow any portion of realized gains or losses to be considered interest income. For internal purposes, the Company prepares a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net operating income (NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics ) statement that offsets forgone interest income by amortizing realized gains and losses. The amortization occurs over a period representative of the effective duration of the fixed income segment of the portfolio at the time the gain or loss was realized. Additionally, the Company also adjusts its pro forma consolidated NOI by the investment returns from general account limited partnership investments (limited partnerships). These investment returns are recognized on an immediate basis. The table below presents the pro forma effect on NOI and net income from the Company's adjustments.
======================================================================
Pro Forma Effect on Net Operating Income (Loss) and Net Income (Loss)
----------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30 June 30
------------------ --------------------
($ millions) 2002 2001 2002 2001
----------------------------------------------------------------------
Net operating
income (loss) $ 140 $(2,077) $ 251 $(1,958)
After-tax pro forma
investment income
adjustment - fixed
income securities 18 22 41 42
----------------------------------------------
Pro forma net
operating income
(loss) - adjusted 158 (2,055) 292 (1,916)
Pro forma net realized
(losses) gains, net
of adjustments 13 345 8 437
======================================================================
Pro forma net income
(loss) from continuing
operations -
adjusted(a) $ 171 $(1,710) $ 300 $(1,479)
======================================================================
(a) Pro forma net income excludes the cumulative effect of a change in
accounting principle related to the adoption of SFAS 133.
About the Company CNA is the country's fourth largest commercial insurance writer, the ninth largest property-casualty company and the 40th largest life insurance company. CNA's insurance products include standard commercial lines, specialty lines, surety An individual who undertakes an obligation to pay a sum of money or to perform some duty or promise for another in the event that person fails to act. surety n. , reinsurance, marine and other property and casualty coverages; life and accident insurance; group long term care, disability and life insurance; and pension products. CNA services include risk management, information services See Information Systems. , underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. , loss control and claims administration. For more information, please visit CNA at www.cna.com. CNA is a registered service mark, trade name and domain name of CNA Financial Corporation. Conference Call and Webcast Information: A conference call for investors and the professional investment community will be held from 10:00 a.m. to 11:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy today. On the conference call will be Bernard L. Hengesbaugh, Chairman and Chief Executive Officer of the CNA insurance companies, and other members of senior management. Participants can access the call by dialing 800-289-0439 or for international callers 913-981-5510. It will also be broadcast live on the internet at http:// investors.cna.com or you may go to the investor relations Investor relations The process by which the corporation communicates with its investors. pages of the CNA Website (www.cna.com) for further details. The call is available to the media, but questions will be restricted to investors and the professional investment community. A taped replay of the call will be available at 11:00 a.m. EST today until 11:59 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. on August 17, 2002 by dialing 888-203-1112 and using passcode 451938 or for international callers 719-457-0820 and using passcode 451938. It will also be archived later in the day for replay on our Website until the date of the next conference call. Financial supplement information related to the second quarter results is available on the investor relations' pages of the CNA Website or by contacting Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. P. Lofe, Jr. at 312-822-3993. FORWARD LOOKING STATEMENT The statements contained in this press release, which are not historical facts, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . When included in this press release, the words "believes," "expects," "intends," "anticipates," "estimates," and analogous analogous /anal·o·gous/ (ah-nal´ah-gus) resembling or similar in some respects, as in function or appearance, but not in origin or development. a·nal·o·gous adj. expressions are intended to identify forward-looking statements. Forward looking statements include expected developments in the insurance business of CNA (the "Company"), including losses for asbestos, environmental pollution and mass tort claims; the Company's expectations concerning its revenues, earnings, expenses and investment activities; expected cost savings and other results from the Company's restructuring activities; expected proceeds and terms of, and other matters concerning, the Company's disposition of its U.K.-based reinsurance business; and the Company's proposed actions in response to trends in its business. Such statements, and the financial condition and results of operations of the Company and the price of the Company's common stock, are subject to a variety of inherent risks and uncertainties. These risks and uncertainties could cause actual results to differ materially from those projected. Such risks and uncertainties include, among others: general economic and business conditions; changes in financial markets such as fluctuations in interest rates, credit conditions and currency, commodity and stock prices; the effects of corporate bankruptcies, such as Enron Enron A U.S. energy-trading and utilities company that housed one of the biggest accounting frauds in history. Enron's executives employed accounting practices that falsely inflated the company's revenues, which, at the height of the scandal, made the firm become the seventh and WorldCom, on energy and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. capital markets, and on the markets for directors & officers and errors & omissions coverages; changes in foreign or domestic political, social and economic conditions, including the possible occurrence of terrorist attacks; regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. initiatives and compliance with governmental regulations, judicial decisions and rulings and changes in tax laws and regulations; regulatory limitations and restrictions upon the Company and its insurance subsidiaries; the impact of competitive products, policies and pricing and the competitive environment in which the Company operates; product and policy availability and demand and market responses, including the effect of the absence of applicable terrorism terrorism, the threat or use of violence, often against the civilian population, to achieve political or social ends, to intimidate opponents, or to publicize grievances. legislation on coverages; development of claims and the impact on loss reserves; the performance of reinsurance companies under reinsurance contracts with the Company; results of financing efforts; changes in the Company's composition of operating segments; exposure to liabilities due to claims made by insureds and others relating to asbestos remediation and health-based asbestos impairments, and exposure to liabilities for environmental pollution and other mass tort claims; the sufficiency of the Company's loss reserves and the possibility of future increases in reserves; the possibility of changes in the Company's 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 (many of which are beyond the Company's control) 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 any updates or revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to any forward-looking statement contained in this press release to reflect any change in the Company's expectations with regard thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. or any change in events, conditions or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which any statement is based. |
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