CNA Outsources Billing Services For Group Customers To Westport Benefits; Insurer Also Makes Investment In Westport.

WESTPORT, Conn.--(BUSINESS WIRE)--Nov. 2, 1998--CNA (NYSE: CNA), one of the world's premier insurers, announced it has chosen Westport Benefits to administer billing services for CNA Group Benefits' customers. Transition of business to Westport will begin in 1999.

Westport Benefits will also administer CNA's multi-product voluntary business in a launch scheduled to begin early in 1999. Both assignments are expected to add significant volume to Westport Benefits' current administrative operations in Omaha and St. Louis.

To help Westport Benefits fund its new operations, CNA has made a non-controlling investment in the operation to provide Westport with additional working capital resources.

Westport Benefits' servicing of CNA's group customers is further evidence of a trend toward increased outsourcing of administrative services to highly specialized firms that have developed proprietary software and systems focused directly on employee benefits. "We have always known our administrative ability is among the best in the industry," said Michael Foley, president and chief executive officer of Westport Benefits. "CNA's commitment to us confirms our feelings." Westport will immediately gear up to insure smooth transition of all cases.

CNA Group Operations President Jae Wittlich said, "The partnership with Westport will raise the level and quality of administrative services that we provide our agents and customers, and allow CNA to focus its resources on its core capabilities."

Outsourcing is further expected to provide significant per transaction cost savings. A transition of billing services from CNA to Westport Benefits' St. Louis location will begin in January with completion projected by late 1999.

The Omaha office will administer CNA's group voluntary product business using its highly acclaimed OnePoint(tm) Administration system.

"OnePoint will provide our customers with the ability to offer a variety of high-quality CNA products through one convenient common administrative platform and one point of contact for all service issues," said Bill Seyboth, senior vice president of Group Sales at CNA.

Headquartered in Chicago, CNA is a leading multi-line insurer, serving individuals and businesses with a broad range of insurance products and insurance-related services. CNA products and services are marketed through multiple distribution channels, including independent agents, brokers, general agents and direct sales. Since 1897, CNA has built on a foundation of financial strength, stability and commitment to customers and business partners. CNA is the registered service mark and trade name of CNA Financial Corporation.

Westport Benefits develops innovative employee benefit products, offered on a turnkey basis to major insurance companies and employers. Westport also operates as a full-service administrator of core and voluntary employee benefit programs. Creativity, professional service, and advanced technology are the cornerstones of our success. The company has offices in Westport, Atlanta, Omaha, and St. Louis.