CNA and Quantum Industrial Partners Complete Deal for the Joint Ownership of RVI Guaranty Co. Ltd.CHICAGO--(AutomotiveWire)--Oct. 6, 1997--Continental Casualty Co. (CNA (Certified NetWare Administrator) See Novell certification. ), 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 CNA Financial Corp. (NYSE NYSE See: New York Stock Exchange :CNA) and Quantum Industrial Partners (QIP QIP Quantum Information Processing QIP Quality Improvement Program QIP Quality Improvement Plan QIP Quality Imaging Products QIP Quality Insights of Pennsylvania QIP Quality Improvement Process QIP Quality Improvement Paradigm QIP Quantum Industrial Partners LDC ) and The Chatterjee Group (TCG (Trusted Computing Group, Beaverton, OR, www.trustedcomputinggroup.org) The successor to the Trusted Computer Platform Alliance (TCPA), announced in 2003 by founding members AMD, HP, IBM, Intel and Microsoft. ) have completed a deal under which CNA and QIP will have equal ownership in RVI RVI Radio Vlaanderen Internationaal (public broadcaster of the Flemish Community in Belgium) RVI Remote Visual Inspection RVI Renault Vehicules Industriels RVI Residual Value Insurance RVI Reverse Interrupt Guaranty Co. Ltd. and its subsidiaries (RVIG RVIG Rice Varietal Improvement Group ). TCG will continue to supervise QIP's investment in RVIG. RVIG is the largest monoline residual value Residual value Usually refers to the value of a lessor's property at the time the lease expires. residual value The price at which a fixed asset is expected to be sold at the end of its useful life. insurance company in the world. Based in Bermuda, the company serves clients in the United States and around the world. The result of this transaction will increase RVIG's shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. in excess of $100 million from the present level of $75 million. Terms of the deal were not disclosed. "The team of CNA, QIP and RVI Guaranty have worked very closely in order to finalize this transaction," noted Douglas H. May, Senior Vice President, CNA Financial Insurance and Co-Chairman of RVI Guaranty. "We have already experienced many benefits of our joint efforts, including increased support from customers, favorable rating agency reviews, development of new products and opening of new markets. The team is very excited and expects the future to hold even more dynamic opportunities." CNA officials regard RVIG as an excellent partner because its specialty underwriters have extensive experience and an in-depth understanding of leasing and asset valuation. That, combined with CNA's financial strength and size, will provide a stable platform from which to launch growth in this relatively untapped segment of the commercial insurance market. CNA has reinsured RVIG on a number of transactions since 1995. CNA Financial Corp., with assets of $60.8 billion, is one of the world's premier multi-business insurance organizations. It ranks among the top 10 insurance organizations in the United States and is the second largest U.S. property-casualty company. Headquartered in Chicago, CNA is one of the few major insurance organizations in the United States that provides a broad range of property-casualty, life and health products, and offers key client services such as risk management, information services See Information Systems. , health care management and claims administration. During its 100-year history, CNA has built a reputation for leadership in insurance and risk management, financial strength and commitment to customers and business partners. CNA is a registered service mark of the CNA Financial Corp. RVI Guaranty Co. Ltd. offers residual value insurance products for assets financed by banks and other financial institutions including automobiles, commercial equipment and real estate. Residual value insurance protects against catastrophic decreases in the value of assets. It also protects the insured party's downside risk without any decrease in upside potential. Purchasers of residual value insurance are lessors and lenders who want to protect themselves against the possibility that assets might be worth less than projected when returned at the end of a financing arrangement. This kind of insurance also is used by leasing companies who are comfortable with the residual value risks they accept, but want the more favorable accounting treatment they receive when a portion of their residual risk is guaranteed by a third party. For further information about residual value insurance, please contact Thomas R. Brandenburger at RVI Services 203/975-2100 or visit RVI at their web site www.rvigroup.com. CONTACT: CNA, Chicago Clark Walter, 312/822-1454 |
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