CNA forming new company for securitization of insurance risks.CHICAGO--(BUSINESS WIRE)--Jan. 15, 1997--CNA Financial Corporation (NYSE NYSE See: New York Stock Exchange :CNA (Certified NetWare Administrator) See Novell certification. ) today announced formation of a new company, Hedge Financial Products, Inc., which will develop opportunities for the securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. of insurance risks. Richard L. Sandor will be chairman and chief executive officer. Terms of related agreements are expected to be finalized See finalization. by the end of the week. Dennis H. Chookaszian, CNA chairman and chief executive officer, said, "The insurance industry is actively seeking new mechanisms to finance risk assumption, and the establishment of Hedge Financial Products puts CNA at the forefront of this activity. We believe the insurance marketplace will be increasingly influenced by the evolving links between financial markets and risk transfer." "Richard Sandor is a respected leader in financial market innovation and we are eager to have his creativity and guidance as CNA develops new risk-transfer capabilities," said Bernard L. Hengesbaugh, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of CNA Specialty Operations. "He has an outstanding reputation in the capital markets, and CNA will benefit greatly from his leadership." Mr. Sandor, whose recent focus has been the securitization of 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. liabilities, noted, "The alliance of Hedge Financial Products with the financial strength and industry leadership of CNA provides a needed bridge between the insurance and capital markets. I look forward to helping add a new dimension as CNA anticipates the needs of a changing marketplace." CNA ranks among the top 10 U.S. insurance groups with revenues of $16.7 billion for the 12 months ended Sept. 30, 1996. It is known for financial strength, leadership in insurance and risk management, and commitment to its customers and business partners. Headquartered in Chicago, CNA is the largest writer of commercial insurance. CNA is the registered service mark and trade name of the 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. Corp. CONTACT: CNA, Chicago Roger Morris, 312/822-4195 |
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