CNA Financial Announces 3rd Quarter 2003 Net Loss and Capital Plan.Business Editors CHICAGO--(BUSINESS WIRE)--Nov. 12, 2003 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 announced third quarter of 2003 results, which included significant reserve strengthening as a result of the Company's recently completed reserve reviews. The Company also announced a plan to strengthen its capital base. The third quarter of 2003 results included the following 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. charges: -- Net prior year development of $1,495 million, which includes premium and claim and allocated claim adjustment expense development. -- Increase in bad debt reserves for insurance and 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. receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed of $332 million. Including the above items, the Company reported a net loss for the third quarter of 2003 of $1,760 million, or $7.94 per share, as compared with net income of $54 million, or $0.24 per share, for the same period in 2002. The net loss for the nine months ended September September: see month. 30, 2003 was $1,607 million, or $7.39 per share, compared with net income of $105 million, or $0.47 per share, for the same period in 2002. The net prior year development consisted of $978 million after-tax related to core reserves and $517 million after-tax related to 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 ) reserves. The primary factors that led to the net prior year development were the previously announced third quarter of 2003 comprehensive reserve reviews, which included construction defect defect - bug and other volatile With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. exposures, and a ground up analysis of APMT exposures. The net prior year development also resulted in additional cessions to the Company's reinsurance contracts, including the 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 . These additional cessions resulted in $67 million of after-tax interest expense, which is recorded as a reduction in net investment income. To support statutory capital adversely impacted by the significant third quarter charges, CNA has developed a capital plan, which includes substantial support from Loews The name Loews can refer to several articles in the Wikipedia:
Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". , having terms that make it economically ec·o·nom·i·cal adj. 1. Prudent and thrifty in management; not wasteful or extravagant. See Synonyms at sparing. 2. Intended to save money, as by efficient operation or elimination of unnecessary features; economic: equivalent to CNA common stock. The conversion price is based on current average market prices of CNA common stock. Proceeds from the preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. sale will be applied by CNA to increase the statutory surplus of CNA's principal insurance subsidiary, Continental Casualty Company (CCC CCC A very speculative grade assigned to a debt obligation by a rating agency. Such a rating indicates default or considerable doubt that interest will be paid or principal repaid. Also called Caa. ). Under the agreement, Loews has also committed up to $500 million of additional capital support, through the purchase of surplus notes of CCC, in the event that certain additions to CCC's statutory capital are not achieved by February February: see month. 26, 2004 from business or asset sales and related actions. The obligation of Loews to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. this agreement is subject to certain customary closing conditions. In addition, Loews has indicated its commitment to provide up to an additional $150 million by March 31, 2004, in a form to be determined, to support the statutory capital of CCC in the event of additional shortfalls in relation to business and asset sales. Other elements of the capital plan include the October October: see month. of 2003 sale of CNA Re renewal rights and withdrawal from the assumed reinsurance business, CNA's previously announced initiative to reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. by $200 million and planned changes One of the foundational definitions in the field of organizational development (aka OD) is planned change: “Organization Development is an effort planned, organization-wide, and managed from the top, to increase organization effectiveness and health through planned in the ownership structure of certain insurance subsidiaries to align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. statutory capital more efficiently. "CNA has undergone enormous change over the last two years" said Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and W. Lilienthal Lilienthal may refer to:
The current accident year continued to improve within the primary property and casualty businesses as evidenced by strong rate increases during the quarter and solid production of new business. Gross written premiums increased 12% in the third quarter of 2003 compared with the same period in 2002. Realized investment results increased $89 million after-tax in the third quarter of 2003 as compared with the same period in 2002. This increase was due primarily to increased 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. related to derivative securities Derivative security A financial security such as an option or future whose value is derived in part from the value and characteristics of another security, the underlying asset. and a reduction in 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 for other-than-temporary declines in market values for fixed maturity and equity securities, partially offset by decreased gains on sales of fixed maturity securities. After-tax investment related impairment losses were $10 million for the third quarter of 2003 as compared with $144 million for the same period in 2002.
Net Income
----------------------------------------------------------------------
Results for the Results for the
three months nine months
ended ended
September 30 September 30
----------------------------------------------------------------------
($ millions) 2003 2002(c) 2003 2002(c)
----------------------------------------------------------------------
(Loss) income before net realized
investment gains (losses) $(1,865) $38 $(1,912) $284
Net realized investment gains (losses) 105 16 305 (87)
--------------------------------
(Loss) Income from continuing
operations (1,760) 54 (1,607) 197
Loss from discontinued operations (a) - - - (35)
Cumulative effect of a change in
accounting principle (b) - - - (57)
======================================================================
Net (loss) income $(1,760) $54 $(1,607) $105
======================================================================
(a) During the first quarter of 2002, CNA Vida, a Chilean-based life
insurance company, was sold and reported as discontinued
operations in accordance with SFAS 144, Accounting for the
Impairment or Disposal of Long-Lived Assets.
(b) Represents the effect of the adoption of SFAS 142, which was a
change in accounting for goodwill and indefinite-lived intangible
assets in 2002.
(c) The three and nine months ended September 30, 2002 results have
been restated to reflect an adjustment to the Company's historical
accounting for CNA's life settlement contracts and the related
revenue recognition. Refer to CNA's 2002 Form 10-K for further
information related to this restatement.
Per Share Results Available to Common Stockholders
----------------------------------------------------------------------
Results for the Results for the
three months nine months
ended ended
September 30 September 30
----------------------------------------------------------------------
2003 2002(d) 2003 2002(d)
--------------------------------
(Loss) Income from continuing
operations (a) $(7.94) $0.24 $(7.39) $0.89
Loss from discontinued operations (b) - - - (0.16)
Cumulative effect of a change in
accounting principle (c) - - - (0.26)
======================================================================
Net (loss) income $(7.94) $0.24 $(7.39) $0.47
======================================================================
(a) The three and nine months ended September 30, 2003 per share
results available to common stockholders are reduced by $15
million and $45 million, or $0.07 per share and $0.20 per share,
of accumulated but undeclared preferred stock dividends.
(b) During the first quarter of 2002, CNA Vida, a Chilean-based life
insurance company, was sold and reported as discontinued
operations in accordance with SFAS 144, Accounting for the
Impairment or Disposal of Long-Lived Assets.
(c) Represents the effect of the adoption of SFAS 142, which was a
change in accounting for goodwill and indefinite-lived intangible
assets in 2002.
(d) The three and nine months ended September 30, 2002 results have
been restated to reflect an adjustment to the Company's historical
accounting for CNA's life settlement contracts and the related
revenue recognition. Refer to CNA's 2002 Form 10-K for further
information related to this restatement.
Segment Results for the Three Months Ended September 30, 2003
----------------------------------------------------------------------
($ millions)
Standard Specialty P&C CNA P&C Group Life Corporate
Lines Lines Ops. Re Segments Ops. Ops. & Other Total
----------------------------------------------------------------------
(Loss)
income
before net
realized
investment
gains $(917) $(180)$(1,097)$(81)$(1,178) $25 $10 $(722)$(1,865)
Net
realized
investment
gains 35 16 51 7 58 17 21 9 105
======================================================================
Net (loss)
income $(882) $(164)$(1,046)$(74)$(1,120) $42 $31 $(713)$(1,760)
======================================================================
Segment Results for the Three Months Ended September 30, 2002
----------------------------------------------------------------------
($ millions)
Standard Specialty P&C CNA P&C Group Life Corporate
Lines Lines Ops. Re Segments Ops. Ops. & Other Total
(c) (c)
----------------------------------------------------------------------
Income (loss)
before net
realized
investment
gains
(losses) $105 $(65) $40 $(25) $15 $30 $31 $(38) $38
Net
realized
investment
(losses)
gains (17) (11) (28) (1) (29) 4 (14) 55 16
======================================================================
Net income
(loss) $88 $(76) $12 $(26) $(14) $34 $17 $17 $54
======================================================================
Segment Results for the Nine Months Ended September 30, 2003
----------------------------------------------------------------------
($ millions)
Standard Specialty P&C CNA P&C Group Life Corporate
Lines Lines Ops. Re Segments Ops. Ops. & Other Total
----------------------------------------------------------------------
(Loss)
income
before net
realized
investment
gains
(loss-
es) $(1,026) $(192)$(1,218)$(43)$(1,261) $70 $37 $(758)$(1,912)
Net
realized
investment
gains
(losses) 153 60 213 38 251 (4) 6 52 305
======================================================================
Net (loss)
income $(873) $(132)$(1,005) $(5)$(1,010) $66 $43 $(706)$(1,607)
======================================================================
Segment Results for the Nine Months Ended September 30, 2002
----------------------------------------------------------------------
($ millions)
Standard Specialty P&C CNA P&C Group Life Corporate
Lines Lines Ops. Re Segments Ops. Ops. & Other Total
(c) (c)
----------------------------------------------------------------------
Income (loss)
before net
realized
investment
gains
(losses) $155 $9 $164 $39 $203 $73 $89 $(81) $284
Net
realized
investment
(losses)
gains (33) (32) (65) 3 (62) (8) (41) 24 (87)
-----------------------------------------------------------
Income (loss)
from
continuing
operations 122 (23) 99 42 141 65 48 (57) 197
Loss from
discontinued
operations
(a) - - - - - - (35) - (35)
Cumulative
effect of a
change in
accounting
principle
(b) - (48) (48) - (48) - (8) (1) (57)
======================================================================
Net income
(loss) $122 $(71) $51 $42 $93 $65 $5 $(58) $105
======================================================================
(a) During the first quarter of 2002, CNA Vida, a Chilean-based life
insurance company, was sold and reported as discontinued
operations in accordance with SFAS 144, Accounting for the
Impairment or Disposal of Long-Lived Assets.
(b) Represents the effect of the adoption of SFAS 142, which was a
change in accounting for goodwill and indefinite-lived intangible
assets in 2002.
(c) The three and nine months ended September 30, 2002 results have
been restated to reflect an adjustment to the Company's historical
accounting for CNA's life settlement contracts and the related
revenue recognition. Refer to CNA's 2002 Form 10-K for further
information related to this restatement.
Property & Casualty Segments Gross Written Premiums
----------------------------------------------------------------------
Three months ended Nine months ended
September 30 September 30
----------------------------------------------------------------------
($ millions) 2003 2002 2003 2002
----------------------------------------------------------------------
Standard Lines $1,406 $1,213 $4,265 $4,017
Specialty Lines 944 889 2,787 2,484
----------------------------------
Total P&C Operations 2,350 2,102 7,052 6,501
CNA Re 150 179 528 578
======================================================================
Total P&C Segments $2,500 $2,281 $7,580 $7,079
======================================================================
Property & Casualty Segments Net Written Premiums
----------------------------------------------------------------------
Three months ended Nine months ended
September 30 September 30
----------------------------------------------------------------------
($ millions) 2003 2002 2003 2002
----------------------------------------------------------------------
Standard Lines $834 $1,033 $2,828 $3,172
Specialty Lines 719 628 2,064 1,740
----------------------------------
Total P&C Operations 1,553 1,661 4,892 4,912
CNA Re 109 167 437 494
======================================================================
Total P&C Segments $1,662 $1,828 $5,329 $5,406
======================================================================
Group and Life Operations Net Earned Premiums
----------------------------------------------------------------------
Three months ended Nine months ended
September 30 September 30
----------------------------------------------------------------------
($ millions) 2003 2002 2003 2002
----------------------------------------------------------------------
Group Operations (a) $338 $292 $982 $2,017
Life Operations 264 236 783 710
======================================================================
(a) For the nine months ended September 30, 2002, net earned premiums
included $1,151 million related to the National Postal Mail
Handlers Union (Mail Handlers Plan) contract, which was
transferred on July 1, 2002.
Property & Casualty Calendar Year Loss Ratios
----------------------------------------------------------------------
Three months ended Nine months ended
September 30 September 30
----------------------------------------------------------------------
2003 2002 2003 2002
----------------------------------------------------------------------
Standard Lines 194.8% 60.6% 116.6% 72.1%
Specialty Lines 110.1 90.7 91.2 77.6
Total P&C Operations 156.6 71.3 105.8 74.0
CNA Re 211.4 115.4 100.0 81.2
Total P&C Segments 159.6 75.4 105.4 74.6
======================================================================
Total P&C Companies 212.1% 79.0% 124.3% 79.6%
======================================================================
Property & Casualty Calendar Year Combined Ratios
----------------------------------------------------------------------
Three months ended Nine months ended
September 30 September 30
----------------------------------------------------------------------
2003 2002 2003 2002
----------------------------------------------------------------------
Standard Lines 283.3% 91.8% 170.4% 104.0%
Specialty Lines 157.4 125.3 128.1 110.9
Total P&C Operations 226.4 103.7 152.6 106.4
CNA Re 263.3 146.0 135.3 113.4
Total P&C Segments 228.4 107.6 151.3 107.0
======================================================================
Total P&C Companies 290.7% 112.6% 173.4% 109.2%
======================================================================
Property & Casualty Gross Accident Year Loss Ratios
----------------------------------------------------------------------
Accident year 2003 Accident year 2002 Accident year 2002
evaluated at evaluated at evaluated at
September 30, 2003 December 31, 2002 September 30, 2003
----------------------------------------------------------------------
Standard Lines 65.4% 74.6% 66.6%
Specialty Lines 64.9 68.1 68.6
Total P&C
Operations 65.2 72.1 67.4
CNA Re 59.7 64.2 61.2
======================================================================
Total P&C Segments 64.8% 71.5% 66.9%
======================================================================
Property & Casualty Net Accident Year Loss Ratios
----------------------------------------------------------------------
Accident year 2003 Accident year 2002 Accident year 2002
evaluated at evaluated at evaluated at
September 30, 2003 December 31, 2002 September 30, 2003
----------------------------------------------------------------------
Standard Lines 68.4% 75.3% 70.6%
Specialty Lines 68.7 71.7 73.0
Total P&C
Operations 68.5 74.1 71.4
CNA Re 63.9 69.3 62.0
======================================================================
Total P&C Segments 68.1% 73.6% 70.6%
======================================================================
The following table highlights the after-tax significant items for
the third quarter of 2003.
After-Tax Significant Items (a)
Quarter Ended September 30, 2003
----------------------------------------------------------------------
($ millions)
Standard Specialty P&C CNA P&C Group Life Corporate
Lines Lines Ops. Re Segments Ops. Ops. & Other Total
----------------------------------------------------------------------
Net prior
year
develop-
ment (b) $(708) $(148) $(856)$(88) $(944) $- $- $(551)$(1,495)
Increase in
bad debt
provision
for
reinsurance
receiv-
ables (36) (51) (87) (1) (88) - - (112) (200)
Increase in
bad debt
provision
for
insurance
receiv-
ables (132) - (132) - (132) - - - (132)
Increase in
unallocated
claim
adjustment
expense
(ULAE)
reserves (3) (18) (21) - (21) - - (44) (65)
======================================================================
Total $(879) $(217)$(1,096)$(89)$(1,185) $- $- $(707)$(1,892)
======================================================================
(a) Additional after-tax items not included in the above table that
have an adverse effect on third quarter of 2003 results included a
$48 million increase in certain insurance-related assessments, $30
million of dividend reserve development and $67 million of
interest expense related to additional cessions to corporate
aggregate and other reinsurance contracts.
(b) Net prior year development for the third quarter of 2003 included
both premium development and claim and allocated claim adjustment
expense reserve development.
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, and excess and surplus lines, as well as insurance and risk management products sold to large corporations. -- Net written premiums decreased $199 million for the third quarter of 2003 as compared with the same period in 2002. This decrease was due primarily to increased ceded premiums, including premiums ceded to corporate aggregate reinsurance treaties, as a result of the net unfavorable prior year reserve development recorded in the third quarter of 2003. -- Standard Lines achieved average rate increases during the third quarter of 2003 of 16%. -- Net results for the third quarter of 2003 decreased $970 million as compared with the same period in 2002, primarily related to a $798 million after-tax increase in unfavorable net prior year development, $26 million after-tax increase in dividend reserve development, $168 million after-tax increase in the bad debt provisions for insurance and reinsurance receivables, $48 million after-tax increase in certain insurance-related assessments and $51 million increase in interest expense related to reinsurance contracts. These declines were partially offset by improvements in the current net accident year loss ratio and net investment 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 property and casualty products and services in the U.S. and abroad. -- Net written premiums increased $91 million for the third quarter of 2003 as compared with the same period in 2002, due primarily to rate increases and new business in professional liability lines, partially offset by increased ceded premiums to corporate aggregate reinsurance treaties as a result of the net unfavorable prior year reserve development recorded in the third quarter of 2003. -- Specialty Lines achieved average rate increases during the third quarter of 2003 of 21%, primarily across most professional liability lines of business. -- Net results for the third quarter of 2003 decreased $88 million as compared with the same period in 2002, primarily related to a $92 million after-tax increase in unfavorable net prior year development, $18 million after-tax increase in ULAE ULAE Universal Limited Art Editions (fine art print publisher) ULAE Unallocated Loss Adjustment Expense reserves, $51 million after-tax increase in the bad debt provision for reinsurance receivables, $10 million after-tax increase in certain insurance-related assessments and $4 million increase in interest expense related to reinsurance contracts. These declines were partially offset by improvements in the current net accident year loss ratio and net investment results. CNA Re operated globally 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. -- In October of 2003, CNA sold the renewal rights for most of the treaty business of CNA Re to Folksamerica Reinsurance Company, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of White Mountains White Mountains, part of the Appalachian system, N N.H. and SW Maine, rising to 6,288 ft (1,917 m) at Mt. Washington in the Presidential Range and to 5,249 ft (1,600 m) at Mt. Lafayette in the Franconia Mountains. Crawford Notch separates these two main groups. Insurance Group, Ltd. Concurrent At the same time. It implies that multiple processes are taking place simultaneously. See concurrent operation. with the sale, CNA announced its withdrawal from the assumed reinsurance business. -- Net written premiums decreased $58 million for the third quarter of 2003 as compared with the same period in 2002, due primarily to increased ceded premiums to corporate aggregate reinsurance treaties, as a result of the net unfavorable prior year reserve development recorded in the third quarter of 2003. -- Net results for the third quarter of 2003 decreased $48 million as compared to the same period in 2002, primarily related to $45 million after-tax increase in unfavorable net prior year development, and $9 million after-tax increase in interest expense related to reinsurance contracts. Group Operations provides a broad array of group life and group health insurance and investment products and services to employers, affinity groups A special interest group. This is a marketing term for a group of people with similar interests. and other entities that purchase insurance as a group. -- Net earned premiums Earned premium is the portion of an insurance written premium which is considered "earned" by the insurer, based on the part of the policy period that the insurance has been in effect, and during which the insurer has been exposed to loss. increased $46 million for the third quarter of 2003 as compared with the same period in 2002, due principally to new sales and rate increases in the disability, specialty medical, life and long term care products within Group Benefits. -- Group Operations achieved average rate increases during the third quarter of 2003 of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 5%. -- Net income for the third quarter of 2003 increased $8 million as compared with the same period in 2002, primarily related to increased net realized investment gains of $13 million, partially offset by $9 million of after-tax non-recurring fee income received in the third quarter of 2002 in relation to the transfer of the Mail Handlers handlers persons involved in the handling of, for example, circus animals. Includes grooms, milkers, herdsmen, strappers. Used mostly in referring to persons handling animals for show or auction. Plan. Life Operations provides financial protection to individuals through a full product line of term life insurance, universal life insurance, individual long term care insurance, annuities and other products. Life Operations has several distribution relationships and partnerships including managing general agencies, other independent agencies working with CNA life sales offices, a network of brokers and dealers, and other independent insurance consultants. -- Net earned premiums increased $28 million for the third quarter of 2003 as compared with the same period in 2002, due primarily to higher sales of structured settlement annuities and a higher base of the inforce long term care product. -- Net income for the third quarter of 2003 increased $14 million as compared with the same period in 2002, primarily related to increased net realized investment results, partially offset by unfavorable individual long term care morbidity morbidity /mor·bid·i·ty/ (mor-bid´it-e) 1. a diseased condition or state. 2. the incidence or prevalence of a disease or of all diseases in a population. mor·bid·i·ty n. due to increased frequency of claims, and a $3 million after-tax write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. software costs. Corporate and Other segment contains certain corporate 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 APMT. 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 and non-insurance operations. -- Net results for the third quarter of 2003 decreased $730 million as compared with the same period in 2002, primarily related to a $545 million after-tax increase in unfavorable net prior year development, principally related to APMT, $44 million after-tax increase in ULAE reserves, $112 million after-tax increase in the bad debt provision for reinsurance receivables and $10 million after-tax increase in certain insurance-related assessments. Net Investment Income Pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern net investment income decreased $12 million to $352 million for the third quarter of 2003 as compared with the same period in 2002. The change was primarily due to lower investment yields on fixed maturity securities and a $95 million increase in interest costs on funds withheld and other deposits related to certain reinsurance contracts. The interest costs on these reinsurance contracts increased due to additional cessions to the corporate aggregate and other reinsurance treaties as a result of the unfavorable net prior year development recorded in the third quarter of 2003. These declines were partially offset by improved limited partnership investment results. About the Company CNA is the country's fourth largest commercial insurance writer and the 11th largest property and casualty 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. , 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. , risk 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 8:00 a.m. to 9:30 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy today. On the conference call will be Stephen W. Lilienthal, Chairman and Chief Executive Officer of the CNA insurance companies, and other members of senior management. Participants can access the call by dialing 800-967-7140 or for international callers 719-457-2629. The call 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 until November November: see month. 19, 2003 by dialing 888-203-1112 and using passcode 235538 or for international callers 719-457-0820 and using passcode 235538. It will also be archived later in the day for replay on our Website. Financial supplement information related to the third quarter results is available on the investor relations pages of the CNA Website or by contacting Dawn Jaffray at 312-822-7757. FORWARD-LOOKING STATEMENT 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. 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 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 expense reduction and 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). activities; 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, including inflationary in·fla·tion·ar·y adj. Of, associated with, or tending to cause inflation: inflationary prices; inflationary policies. Adj. 1. pressures on medical care costs, construction costs and other economic sectors that increase the severity of claims; changes in financial markets such as fluctuations in interest rates, long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. periods of low 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 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. , on surety bond surety bond An insurance fee required before a duplicate security is issued to replace one that has been lost. The fee is approximately 4% of the market value of the security to be replaced. claims, as well as on capital markets and on the markets for directors & officers and errors & omissions coverages; changes in foreign or domestic political, social and economic conditions; 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, including interpretation of policy provisions, decisions regarding coverage and theories of liability, trends in litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and the outcome of any litigation involving the Company; 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, including changes in the Company's books of business; product and policy availability and demand and market responses, including the level of ability to obtain rate increases and decline or non-renew underpriced un·der·price tr.v. un·der·priced, un·der·pric·ing, un·der·pric·es 1. To price lower than the real, normal, or appropriate value. 2. accounts, to achieve premium targets and profitability and to realize growth and retention estimates; development of claims and the impact on loss reserves, including changes in claim settlement practices; the effectiveness of current initiatives by claims management to reduce loss and expense ratio through more efficacious ef·fi·ca·cious adj. Producing or capable of producing a desired effect. See Synonyms at effective. [From Latin effic claims handling techniques; the performance of reinsurance companies under reinsurance contracts with the Company; results of financing efforts, including the availability of bank credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities ; changes in the Company's composition of operating segments; weather and other natural physical events, including the severity and frequency of storms, hail, snowfall and other winter conditions, as well as of natural disasters such as hurricanes and earthquakes Earthquakes See also geology. bathyseism an earthquake occurring at very deep levels of the earth. bradyseism the slow upward and downward motion of the earth’s crust. — bradyseismic, adj. ; man-made disasters man-made disaster Technological disaster Public health An event in which a significant number of people are injured or die as a result of human devices or activities, unrelated to conflicts, and attributed to operator error–eg, Exxon Valdez , including the possible occurrence of terrorist attacks and 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; the occurrence of epidemics This article is a list of major epidemics. Worldwide Pandemics
relating to relate prep → bezüglich +gen, mit Bezug auf +acc asbestos remediation and health-based asbestos impairments, and exposure to liabilities for environmental pollution and other mass tort claims; whether a national privately financed trust to replace litigation of asbestos claims with payments to claimants from the trust will be established or approved through federal legislation, or, if established and approved, whether it will contain funding requirements in excess of the Company's established loss reserves or carried loss reserves; the sufficiency of the Company's loss reserves and the possibility of future increases in reserves; the level of success in integrating acquired businesses and operations, and in consolidating existing ones; the possibility of changes in the Company's ratings by ratings agencies, including the inability to access certain markets or distribution channels and the required collateralization In medicine, collateralization, also vessel collaterlization and blood vessel collateralization, is the growth of a blood vessel or several blood vessels that serve the same end organ or vascular bed as another blood vessel that cannot adequately supply that end organ of future payment obligations as a result of such changes, 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. This press release may also contain financial measures that are not in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). For reconciliations of non-GAAP measures to the most comparable GAAP measures, refer to this press release and the financial supplement posted on the Company's website. |
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