CNA Financial Announces 4th Quarter and Year-End 2003 Results.Business Editors CHICAGO--(BUSINESS WIRE)--Feb. 12, 2004 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 net income for the fourth quarter of 2003 of $174 million, or $0.67 per share, as compared with net income of $50 million, or $0.21 per share, for the same period in 2002. The net loss for the year ended December December: see month. 31, 2003 was $1,433 million, or $6.58 per share, compared with net income of $155 million, or $0.68 per share, in 2002. The increase in fourth quarter of 2003 results over the prior period is primarily due to strong results in Property and Casualty Operations. Rate increases, solid production of new business, continued 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. discipline and a focus on expense management all contributed to the 99.1% combined ratio for Property and Casualty Operations in the fourth quarter of 2003. The decrease in net results for the year ended December 31, 2003 over the prior year was principally a result of unfavorable net prior year development of $1,849 million 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. and an 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 $396 million after-tax. "A review of the strategic options for all of CNA's businesses was completed to provide the greatest opportunity to maximize shareholder value and concentrate efforts to focus solely on Property and Casualty Operations," 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:
As part of the previously announced capital plan, in order to replenish re·plen·ish v. re·plen·ished, re·plen·ish·ing, re·plen·ish·es v.tr. 1. To fill or make complete again; add a new stock or supply to: replenish the larder. 2. statutory capital of CNA's insurance subsidiaries adversely impacted by the 2003 charges discussed above, 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". in November November: see month. of 2003. Loews committed additional capital support of up to $500 million by February February: see month. 27, 2004 through the purchase of surplus notes of 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. ), CNA's principal insurance subsidiary, in the event certain additions to CCC's statutory capital are not achieved through asset sales. In addition, Loews committed to an additional $150 million of capital support by March 31, 2004, in a form to be determined. As a result of the sale of the Group Benefits business, CNA estimates that Loews will purchase $45 million of CCC surplus notes pursuant to such commitment. In addition, CNA has recently announced that it has entered into an agreement to sell its individual life business and has estimated that this sale will result in an addition to CCC's statutory surplus in excess of $400 million. However, the sale of the individual life business, which is subject to customary closing conditions and 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. approvals, is not expected to be consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. by February 26, 2004. As a result, Loews will be obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to purchase $300 million of additional CCC surplus notes. Following the consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the individual life sale, CNA plans to seek approval from the insurance regulatory authority Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities for the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of the surplus notes purchased in relation to such sale, although no assurance can be given that sale of the individual life business will be consummated or that the regulatory approval will be obtained. Realized investment results improved $42 million after-tax in the fourth quarter of 2003 as compared with the same period in 2002. The increase was due primarily to 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 fair value for fixed maturity and equity securities, partially offset by a $130 million after-tax loss on the previously announced sale of the Group Benefits business. After-tax investment related impairment losses were $12 million for the fourth quarter of 2003 as compared with $232 million for the same period in 2002.
Net Income
----------------------------------------------------------------------
Results for the Results for the
Three Months Ended Year Ended
December 31 December 31
----------------------------------------------------------------------
($ millions) 2003 2002 2003 2002
----------------------------------------------------------------------
Income (loss) before net
realized investment gains
(losses) $194 $112 $(1,718) $396
Net realized investment
(losses) gains (20) (62) 285 (149)
-----------------------------------------
Income (loss) from continuing
operations 174 50 (1,433) 247
Loss from discontinued
operations (a) - - - (35)
Cumulative effect of a change
in accounting principle (b) - - - (57)
======================================================================
Net income (loss) $174 $50 $(1,433) $155
======================================================================
(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.
Per Share Results Available to Common Stockholders
----------------------------------------------------------------------
Results for the Results for
Three Months Ended the Year Ended
December 31 December 31
----------------------------------------------------------------------
2003 (a) 2002 2003 (a) 2002
-----------------------------------------
Income (loss) from continuing
operations (b) $0.67 $0.21 $(6.58) $1.10
Loss from discontinued
operations (c) - - - (0.16)
Cumulative effect of a change
in accounting principle (d) - - - (0.26)
======================================================================
Net income (loss) $0.67 $0.21 $(6.58) $0.68
======================================================================
(a) Included in the weighted average number of common shares for the
three months and year ended December 31, 2003 are the effects of
additional common stock equivalents related to the November of
2003 sale of $750 million of convertible preferred shares to Loews
Corporation. The preferred shares are convertible into 32,327,015
shares of CNA common stock. The conversion is expected to occur in
2004.
(b) The three months and year ended December 31, 2003 per share
results available to common stockholders are reduced by $15
million and $60 million, or $0.06 per share and $0.27 per share,
of accumulated but undeclared preferred stock dividends. The three
months and year ended December 31, 2002 per share results
available to common stockholders were both reduced by $2 million,
or $0.01 per share, of accumulated but undeclared preferred stock
dividends.
(c) During the first quarter of 2002, CNA Vida, a Chilean-based life
insurance company, was sold and reported as discontinued
operations in accordance with SFAS 144, Accounting for the
Impairment or Disposal of Long-Lived Assets.
(d) Represents the effect of the adoption of SFAS 142, which was a
change in accounting for goodwill and indefinite-lived intangible
assets in 2002.
Segment Results for the Three Months Ended December 31, 2003
----------------------------------------------------------------------
($ millions)
Standard Specialty P&C CNA P&C Group Life Corporate
Lines Lines Ops. Re Segments Ops. Ops. & Other Total
----------------------------------------------------------------------
Income
(loss)
before net
realized
investment
gains
(losses) $70 $81 $151 $16 $167 $30 $8 $(11) $194
Net realized
investment
gains
(losses) 66 34 100 12 112 (127) 17 (22) (20)
======================================================================
Net income
(loss) $136 $115 $251 $28 $279 $(97) $25 $(33) $174
======================================================================
Segment Results for the Three Months Ended December 31, 2002
----------------------------------------------------------------------
($ millions)
Standard Specialty P&C CNA P&C Group Life Corporate
Lines Lines Ops. Re Segments Ops. Ops. & Other Total
----------------------------------------------------------------------
Income
(loss)
before net
realized
investment
gains
(losses) $42 $19 $61 $26 $87 $31 $5 $(11) $112
Net realized
investment
(losses)
gains (23) (20) (43) 68 25 (31) (33) (23) (62)
======================================================================
Net income
(loss) $19 $(1) $18 $94 $112 $- $(28) $(34) $50
======================================================================
Segment Results for the Year Ended December 31, 2003
----------------------------------------------------------------------
($ 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
(losses) $(956) $(111)$(1,067)$(27)$(1,094) $100 $45 $(769)$(1,718)
Net
realized
investment
gains
(losses) 219 94 313 50 363 (131) 23 30 285
======================================================================
Net (loss)
income $(737) $(17) $(754) $23 $(731) $(31) $68 $(739)$(1,433)
======================================================================
The following table highlights the after-tax significant items for the
year ended December 31, 2003.
After-Tax Significant Items (a)
Year Ended December 31, 2003
----------------------------------------------------------------------
($ millions)
Standard Specialty P&C CNA P&C Group Life Corporate
Lines Lines Ops. Re Segments Ops. Ops. & Other Total
----------------------------------------------------------------------
Net prior
year
development
(b) $(905) $(279)$(1,184)$(97)$(1,281) $- $- $(568)$(1,849)
Increase in
bad debt
provision
for
reinsurance
receivables(36) (51) (87) (1) (88) - - (151) (239)
Increase in
bad debt
provision
for
insurance
receiv-
ables (157) - (157) - (157) - - - (157)
Increase in
unallocated
claim
adjustment
expense
(ULAE)
reserves (3) (18) (21) - (21) - - (44) (65)
======================================================================
Total $(1,101) $(348)$(1,449)$(98)$(1,547) $- $- $(763)$(2,310)
======================================================================
(a) Additional after-tax items not included in the above table that
have an adverse effect on the year ended December 31, 2003 results
included a $48 million increase in certain insurance-related
assessments, $30 million of dividend reserve development, $27
million increase in individual long term care reserves and $96
million of interest expense related to additional cessions to
corporate aggregate and other reinsurance contracts.
(b) Net prior year development for the year ended December 31, 2003
included both premium development and claim and allocated claim
adjustment expense reserve development.
Segment Results for the Year Ended December 31, 2002
----------------------------------------------------------------------
($ millions)
Standard Specialty P&C CNA P&C Group Life Corporate
Lines Lines Ops. Re Segments Ops. Ops. & Other Total
----------------------------------------------------------------------
Income (loss)
before net
realized
investment
gains
(losses) $197 $28 $225 $65 $290 $104 $94 $(92) $396
Net realized
investment
(losses)
gains (56) (52) (108) 71 (37) (39) (74) 1 (149)
-----------------------------------------------------------
Income (loss)
from
continuing
operations 141 (24) 117 136 253 65 20 (91) 247
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) $141 $(72) $69 $136 $205 $65 $(23) $(92) $155
======================================================================
(a) During the first quarter of 2002, CNA Vida, a Chilean-based life
insurance company, was sold and reported as discontinued
operations in accordance with SFAS 144, Accounting for the
Impairment or Disposal of Long-Lived Assets.
(b) Represents the effect of the adoption of SFAS 142, which was a
change in accounting for goodwill and indefinite-lived intangible
assets in 2002.
Property & Casualty Segments Gross Written Premiums
----------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
----------------------------------------------------------------------
($ millions) 2003 2002 2003 2002
----------------------------------------------------------------------
Standard Lines $1,354 $1,010 $5,619 $5,027
Specialty Lines 908 875 3,695 3,359
-----------------------------------
Total P&C Operations 2,262 1,885 9,314 8,386
CNA Re 44 154 572 732
======================================================================
Total P&C Segments $2,306 $2,039 $9,886 $9,118
======================================================================
Property & Casualty Segments Net Written Premiums
----------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
----------------------------------------------------------------------
($ millions) 2003 2002 2003 2002
----------------------------------------------------------------------
Standard Lines $974 $848 $3,802 $4,020
Specialty Lines 745 643 2,809 2,383
----------------------------------
Total P&C Operations 1,719 1,491 6,611 6,403
CNA Re 41 111 478 605
======================================================================
Total P&C Segments $1,760 $1,602 $7,089 $7,008
======================================================================
Group and Life Operations Net Earned Premiums
----------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
----------------------------------------------------------------------
($ millions) 2003 2002 2003 2002
----------------------------------------------------------------------
Group Operations (a) $330 $310 $1,312 $2,327
Life Operations 246 220 1,029 930
======================================================================
(a) For the year ended December 31, 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 Year Ended
December 31 December 31
----------------------------------------------------------------------
2003 2002 2003 2002
----------------------------------------------------------------------
Standard Lines 67.7% 71.7% 102.5% 72.0%
Specialty Lines 67.7 75.6 84.9 77.1
Total P&C Operations 67.7 73.1 95.1 73.9
CNA Re 84.3 71.1 95.2 78.4
Total P&C Segments 69.1 72.9 95.2 74.2
Total P&C Companies (a) 75.2% 78.8% 110.5% 79.4%
======================================================================
(a) P&C Companies includes Standard Lines, Specialty Lines, CNA Re and
P&C business written in Group Operations, Life Operations and
Corporate and Other, including asbestos, environmental pollution
and mass tort exposures (APMT). The P&C Companies ratios exclude
the impact of commutation transactions between CNA's property and
casualty and life and group companies.
Property & Casualty Calendar Year Combined Ratios
----------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
----------------------------------------------------------------------
2003 2002 2003 2002
----------------------------------------------------------------------
Standard Lines 101.8% 105.7% 150.7% 104.4%
Specialty Lines 95.1 104.9 119.2 109.3
Total P&C Operations 99.1 105.4 137.6 106.1
CNA Re 100.9 97.8 124.7 109.1
Total P&C Segments 99.3 104.6 136.6 106.4
Total P&C Companies (a) 105.0% 111.1% 154.2% 109.6%
======================================================================
(a) P&C Companies includes Standard Lines, Specialty Lines, CNA Re and
P&C business written in Group Operations, Life Operations and
Corporate and Other, including APMT. The P&C Companies ratios
exclude the impact of commutation transactions between CNA's
property and casualty and life and group companies.
Property & Casualty Gross Accident Year Loss Ratios
----------------------------------------------------------------------
Accident year 2003 Accident year 2002 Accident year 2002
evaluated at evaluated at evaluated at
December 31, 2003 December 31, 2002 December 31, 2003
----------------------------------------------------------------------
Standard Lines 65.8% 74.6% 67.5%
Specialty
Lines 64.4 68.1 70.0
Total P&C
Operations 65.2 72.1 68.5
CNA Re 64.3 64.2 61.4
======================================================================
Total P&C
Segments 65.2% 71.5% 67.9%
======================================================================
Property & Casualty Net Accident Year Loss Ratios
----------------------------------------------------------------------
Accident year 2003 Accident year 2002 Accident year 2002
evaluated at evaluated at evaluated at
December 31, 2003 December 31, 2002 December 31, 2003
----------------------------------------------------------------------
Standard Lines 68.3% 75.3% 71.5%
Specialty
Lines 68.1 71.7 72.8
Total P&C
Operations 68.2 74.1 72.0
CNA Re 69.2 69.4 62.5
======================================================================
Total P&C
Segments 68.3% 73.7% 71.2%
======================================================================
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 increased $126 million for the fourth quarter of 2003 as compared with the same period in 2002. This increase was due primarily to increased rate and retention across most of Standard Lines businesses. -- Standard Lines achieved average rate increases during the fourth quarter of 2003 of 12%. -- Net results for the fourth quarter of 2003 increased $117 million as compared with the same period in 2002, primarily related to improved current net accident year loss ratios and improved net investment results, including increased limited partnership income. 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 $102 million for the fourth quarter of 2003 as compared with the same period in 2002, due primarily to rate increases and new business in professional liability lines. -- Specialty Lines achieved average rate increases during the fourth quarter of 2003 of 20%, primarily across most professional liability lines of business. -- Net results for the fourth quarter of 2003 increased $116 million as compared with the same period in 2002, primarily related to improved current net accident year loss ratios and improved net investment results, including increased limited partnership income. 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 October: see month. 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 and will manage the run-off run-off n (in contest, election) → desempate m (= extra race); carrera de desempate run-off n (in contest, election) → of its retained liabilities. -- Net written premiums decreased $70 million for the fourth quarter of 2003 as compared with the same period in 2002 primarily due to the decision to withdraw from the assumed reinsurance business. -- Net results for the fourth quarter of 2003 decreased $66 million as compared to the same period in 2002, primarily related to a decrease in net investment results. Group Operations provides group long term care and specialty medical products 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. -- On December 31, 2003, CNA sold its Group Benefits business to Hartford Hartford, city (1990 pop. 139,739), state capital, Hartford co., central Conn., on the west bank of the Connecticut River; settled as Newtown 1635–36 on the site of a Dutch trading post (1633; abandoned 1654), inc. 1784. Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Group, Inc. The business sold included group life and accident, and short and long term disability insurance. CNA's group long term care and specialty medical businesses were excluded from the sale. CNA has also announced the decision to cease new sales in its institutional markets business. -- Net results for the fourth quarter of 2003 decreased $97 million as compared with the same period in 2002, principally due to a decrease in net realized investment results. This decrease was primarily due to the $130 million after-tax loss recorded on the sale of the Group Benefits business during the fourth quarter of 2003. 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. -- As previously announced, CNA has entered into a definitive agreement to sell its individual life insurance business to Swiss Re Swiss Re is the world’s largest reinsurer, now that it has acquired GE Insurance Solutions (Ligi 2006). Founded in 1863, Swiss Re now operates in more than 30 countries. General Electric owns 8.9% of the firm. Life & Health America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. Inc. (Swiss Re) for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $690 million. The business sold includes term, universal and permanent life insurance policies and individual annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. products. CNA's individual long term care and structured settlement businesses are excluded from the sale. CNA has also announced the decision to cease new sales in its structured settlement business. -- 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 $26 million for the fourth 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 results for the fourth quarter of 2003 increased $53 million as compared with the same period in 2002, primarily related to increased net realized investment results, favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. life settlement results and favorable life mortality, partially offset by unfavorable reserve strengthening for individual long term care due to increased 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. . 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 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 . In addition, this segment includes the results of certain run-off insurance and non-insurance operations. -- Net results for the fourth quarter of 2003 improved $1 million as compared with the same period in 2002. The net results in the fourth quarter of 2003 include increased net investment income, including increased limited partnership income. Net Investment Income Pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern net investment income of $436 million for the fourth quarter of 2003 decreased $2 million as compared with the same period in 2002. The change was primarily due to increased holdings in lower yielding tax-exempt tax-ex·empt adj. 1. Not subject to taxation, as the capital or income of a philanthropic organization. 2. Producing interest that is exempt from income tax: tax-exempt bonds. n. and short term investment securities and the absence in 2003 of a $34 million pretax dividend income from Canary Wharf
Canary Wharf is a large business development in London, located on the Isle of Dogs in the London Borough of Tower Hamlets, centred on the old West India Docks in Group plc. These declines were partially offset by a $68 million pretax improvement in limited partnership income. 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. CNA services include risk management, information services See Information Systems. , underwriting, 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 10:00 a.m. to 11:00 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 800-818-5264 or for international callers 913-981-4910. 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 for one week until February 19, 2004 by dialing 888-203-1112 and using passcode 254941 or for international callers 719-457-0820 and using passcode 254941. It will also be archived later in the day for replay on our Website. Financial supplement information related to the fourth 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 or made during the conference call referenced above, which are not historical facts, are forward-looking statements. When included in this press release or the conference call, 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 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. 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 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 or of the conference call. The Company expressly disclaims any obligation or undertaking to release any updates or revisions to any forward-looking statement contained in this press release or made in the conference call 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 and the conference call may reference 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 the text of this press release and the financial supplement posted on the Company's website. |
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