CNA Reports Earnings for the Third Quarter of 1997.CHICAGO--(BUSINESS WIRE)--Nov. 5, 1997--CNA Financial Corporation (NYSE NYSE See: New York Stock Exchange :CNA (Certified NetWare Administrator) See Novell certification. ) announced net income for the third quarter of 1997 was $274 million, or $4.41 per share, compared with $239 million, or $3.83 per share, for the same quarter in 1996. Excluding net realized investment gains, net income for the third quarter of 1997 amounted to $121 million, or $1.93 per share, compared with $161 million, or $2.57 per share, for the same quarter in 1996. Net realized investment gains for the third quarter of 1997 were $153 million, or $2.48 per share, compared with $78 million, or $1.26 per share for the comparable period in 1996. 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: revenues for the third quarter of 1997 and 1996 were approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $4.3 billion. Net income for the first nine months of 1997 was $687 million, or $11.04 per share, compared with $770 million, or $12.38 per share, for the first nine months of 1996. Excluding net realized investment gains, net income for the first nine months of 1997 amounted to $383 million, or $6.12 per share, compared with $458 million or $7.33 per share for the first nine months of 1996. Net realized investment gains were $304 million, or $4.92 per share for the first nine months of 1997, compared with net realized investment gains of $312 million, or $5.05 per share, for the same period in 1996. Consolidated revenues for the first nine months of 1997 and 1996 were approximately $12.7 billion. "CNA is maintaining its position in an intensely competitive marketplace," said Dennis Dennis is a male first name derived from the Greco-Roman name Dionysius meaning "servant of Dionysus", the Thracian god of wine, which is ultimately derived from the Greek Dios (Διος, "of Zeus") combined with Nysos or Nysa (Νυσα), where the H. Chookaszian, Chairman and Chief Executive Officer, CNA. "Our 1997 operating results reflect CNA's disciplined approach to 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. in a prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. soft market." Chookaszian noted that while CNA's operating results have benefited from the same favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). experience as the rest of the industry, these benefits have been more than offset by the impact of competition in commercial property/casualty insurance, CNA's largest business segment. Business expansion initiatives in the third quarter included the launch of CNA 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. Corporation, a new publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. formed through the merger of CNA's surety business and the surety companies of Capsure Holdings Corp. The merger was 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. on Sept. 30, 1997. In conjunction with the closing of the surety transaction, CNA recognized a realized investment gain of $89 million. The new company, in which CNA has approximately a 62% interest, is the largest U.S. surety company with the broadest product line and most extensive distribution system. "The merger has created a surety powerhouse A fourth-generation language from Cognos that was introduced in the late 1970s for midrange computers. It supports both character-oriented, terminal-based applications as well as Windows clients. Applications developed under PowerHouse can be imported into Cognos' Axiant client/server environment. with a track record of profitable growth," said Chookaszian. "The transaction exemplifies CNA's long-range long-range adj. 1. Of, suitable for, or reaching long distances: long-range missiles. 2. Requiring or involving an extended span of time: long-range planning. strategy of moving toward independent capital structures to support our various businesses. As a publicly traded company, CNA Surety Corporation has flexibility to enter alliances and partnerships, as well as direct access to capital markets to finance growth." Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide J. Noha, Chairman of the Board, 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, said, "Current market conditions validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data CNA's conservative financial strategy. CNA will continue its emphasis on 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. growth and balance sheet strength." In 1997, CNA observes its centennial year, celebrating a century of financial strength, stability and commitment to customers and business partners. During its first century, CNA has become one of the top 10 U.S. insurance organizations. CNA is the registered service mark and trade name of CNA Financial Corporation. -0- ____________________________________________________________________ CNA FINANCIAL CORPORATION 1997 1996 _____________________ ___________________ In Earnings In Earnings Millions Per Share Millions Per Share ___________________________________________________________________ THREE MONTHS ENDED SEPTEMBER September: see month. 30 __________________ Revenues $ 4,309 - $ 4,256 - Net income excluding net realized investment gains 121 $ 1.93 161 $ 2.57 Net realized investment gains 153 2.48 78 1.26 _______ _______ _______ _______ Net income $ 274 $ 4.41 $ 239 $ 3.83 _______ _______ _______ _______ NINE MONTHS ENDED SEPTEMBER 30 _________________ Revenues $12,684 - $12,666 - Net income excluding net realized investment gains 383 $ 6.12 458 $ 7.33 Net realized investment gains 304 4.92 312 5.05 _______ _______ _______ _______ Net income $ 687 $ 11.04 $ 770 $ 12.38 _______ _______ _______ _______ ____________________________________________________________________ FINANCIAL POSITION September 30 December December: see month. 31 1997 1996 (In millions of dollars, except per share data) ____________________________________________________________________ Assets $ 62,489 $ 60,300 Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. 7,917 7,060 Net unrealized appreciation included in stockholders' equity 474 299 Book value per common share Book Value Per Common Share A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: 125.69 111.81 ____________________________________________________________________ ____________________________________________________________________ SUPPLEMENTAL FINANCIAL DATA THIRD QUARTER NINE MONTHS PERIOD ENDED SEPTEMBER 30 1997 1996 1997 1996 (In millions of dollars) ____________________________________________________________________ NET INCOME (EXCLUDING NET REALIZED INVESTMENT GAINS/LOSSES): Property/Casualty $ 121 $ 165 $ 385 $ 463 Life 24 23 71 78 _______ _______ _______ _______ Total insurance 145 188 456 541 Interest expense and other (24) (27) (73) (83) _______ _______ _______ _______ $ 121 $ 161 $ 383 $ 458 _______ _______ _______ _______ _______ _______ _______ _______ REALIZED INVESTMENT GAINS (LOSSES), NET OF TAX AND PARTICIPATING POLICYHOLDERS' INTEREST: Property/Casualty $ 126 $ 52 $ 221 $ 232 Life 29 22 73 79 _______ _______ _______ ______ Total Insurance 155 74 294 311 Other (2) 4 10 1 _______ _______ _______ ______ $ 153 $ 78 $ 304 312 _______ _______ _______ ______ _______ _______ _______ ______ CNA FINANCIAL CORPORATION STATEMENT OF CONDENSED con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. CONSOLIDATED OPERATIONS ____________________________________________________________________ THIRD QUARTER NINE MONTHS PERIOD ENDED SEPTEMBER 30 (In millions of dollars, 1997 1996 1997 1996 except per share data) ____________________________________________________________________ Revenues: Premiums $ 3,336 $ 3,435 $10,031 $10,049 Investment income 530 540 1,641 1,676 Realized investment gains 237 109 475 487 Other 206 172 537 454 ________ ________ ________ ________ 4,309 4,256 12,684 12,666 ________ ________ ________ ________ Benefits and expenses: Insurance claims and policyholders' benefits 2,854 2,839 8,607 8,401 Other 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. 1,062 1,117 3,114 3,193 ________ ________ ________ ________ 3,916 3,956 11,721 11,594 ________ ________ ________ ________ Income before income tax 393 300 963 1,072 Income tax expense 119 61 276 302 ________ ________ ________ ________ Net income $ 274 $ 239 $ 687 $ 770 ____________________________________________________________________ EARNINGS PER SHARE __________________ Net income $ 4.41 $ 3.83 $ 11.04 $ 12.38 ________ ________ ________ ________ ________ ________ ________ ________ Weighted average outstanding shares of common stock (in millions of shares) 61.8 61.8 61.8 61.8 ____________________________________________________________________ ____________________________________________________________________ CNA FINANCIAL CORPORATION SUPPLEMENTAL STATUTORY DATA - OPERATIONS THIRD QUARTER NINE MONTHS PERIOD ENDED SEPTEMBER 30 (In millions of dollars, 1997 1996 1997 1996 except ratios) ____________________________________________________________________ Property/Casualty affiliates: Premiums written $ 2,557 $ 2,644 $ 8,063 $ 7,915 Premiums earned 2,508 2,568 7,540 7,619 Underwriting loss (214) (221) (874) (720) Investment income 415 434 1,287 1,336 Trade ratios: Loss 77.3% 74.6% 78.5% 76.6% Expense 29.6% 32.1% 30.0% 30.5% Combined (before policyholder Policyholder An individual who owns an insurance policy. dividends) 106.9% 106.7% 108.5% 107.1% Dividends to policyholders 1.1% 1.0% 0.9% 1.2% Life affiliates: Premium income $ 907 $ 913 $ 2,741 $ 2,731 CNA Insurance Companies Net Written Premium Volume ___________________________ Property/Casualty affiliates: Commercial $ 2,140 $ 2,172 $ 6,797 $ 6,433 Personal 451 436 1,387 1,318 Involuntary involuntary adj. or adv. without intent, will, or choice. Participation in a crime is involuntary if forced by immediate threat to life or health of oneself or one's loved ones, and will result in dismissal or acquittal. INVOLUNTARY. risks (34) 36 (121) 164 Life affiliates: Individual 209 186 643 578 Group 698 727 2,098 2,153 ________ ________ ________ ________ $ 3,464 $ 3,557 $10,804 $10,646 ________ ________ ________ ________ ________ ________ ________ ________ ___________________________________________________________________ SUPPLEMENTAL STATUTORY DATA - FINANCIAL POSITION SEPTEMBER 30 DECEMBER 31 (In millions of dollars, except ratios) 1997 1996 ____________________________________________________________________ Property/Casualty affiliates: Statutory surplus $ 6,784 $ 6,349 Written premiums to surplus ratio 1.5 1.6 Claim and claim expense reserves 23,784 23,735 Ratio of reserves to twelve months premiums earned 2.3 2.3 Life affiliates: Statutory surplus 1,186 1,163 Life insurance in force 284,781 237,009 ____________________________________________________________________ CONTACT: CNA Deborah Deborah (dĕb`ōrə), in the Bible, prophetess and judge of Israel, the only woman to hold that office. Under her guidance Barak conquered Sisera and delivered Israel from the oppression of the Canaanite King Jabin. Kamp KAMP Known As Male Prostitute (analyst), 312/822-7752 Roger Morris (media), 312/822-4195 Clark Walter Wal·ter , Bruno 1876-1962. German conductor noted for his interpretations of Mozart and Mahler. Noun 1. Walter - German conductor (1876-1962) Bruno Walter , 312/822-1454 |
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