CNA Risk Management Announces Launch of New Organization Dedicated To Risk Management Clients.

CHICAGO--(BUSINESS WIRE)--Oct. 21, 1998--CNA Risk Management, a business unit of CNA (NYSE:CNA), today announced the launch of an organization offering total risk management services to clients in all risk management market segments.

The new organization, RSKCo(SM), will service clients who purchase either integrated or component services, said Robert R. Kulbick, who has been named chief executive officer. It was created by the unification of two claims organizations and the integration of the unified claims group with the cost management, loss control and information services functions of CNA Risk Management.

CNA Risk Management serves the risk and insurance management needs of the top 7,800 U.S.-based enterprises doing business both domestically and globally with tailored programs for the retail, temporary staffing, gaming, food-processing, construction, healthcare and communications industries. Revenues in 1997 reached a record high of more than $800 million.

"RSKCo is a result of CNA Risk Management's vision of the marketplace of the future," said Kulbick. "RSKCo will offer integrated and component risk management services supported by innovative solutions from the claims, cost management, loss control and information services groups. RSKCo is a unique service offering in that it can weave together the capabilities of the different services comprised in a risk management program. This integration will lower our clients' loss costs," he said.

"RSKCo is the only organization in the insurance industry offering a total risk management services approach and we are fully dedicated to risk management clients," Kulbick said. "RSKCo's size and scale will provide meaningful resources to develop innovative solutions to anticipate and meet our clients' needs now and in the future," he said.

RSKCo was created by the unification of CNA Risk Management's two claims service organizations, Alexsis Risk Management Services, Inc. of Livonia, Mich., and Chicago-based Servco. This new entity was combined with CNA Risk Management's cost management, loss control and risk management information services functions.

"The chief benefit of RSKCo is that we offer business clients a full range of options. RSKCo can fully satisfy clients in all market segments," Kulbick said. In addition, RSKCo can provide services to other insurance companies, he said. "This repositioning will allow us to be a dynamic force in the marketplace."

The new organization is known by the service mark RSKCo.

CNA, headquartered in Chicago, is one of the world's premier organizations offering insurance and insurance-related services. With 1997 revenues of $17 billion, CNA ranks among the top U.S. insurance groups. CNA is the registered service mark and trade name of CNA Financial Corp.