CNA reports increased earnings for the second quarter.

CHICAGO--(BUSINESS WIRE)--Aug. 2, 1995--CNA Financial Corporation reported net income of $256.7 million, or $4.12 per share, for the second quarter of 1995 compared with a net loss of $36.2 million, or $.61 per share, for the second quarter of 1994.

Net income excluding net realized investment gains for the second quarter of 1995 was $127.2 million, or $2.03 per share, compared with $17.7 million, or $.27 per share, for the same quarter in 1994. Net realized investment gains for the second quarter of 1995 amounted to $129.5 million, or $2.09 per share, compared with net realized investment losses of $53.9 million, or $.88 per share, for the same period in 1994.

Consolidated revenues for the second quarter of 1995 were $3.7 billion, compared to $2.7 billion for the same quarter in 1994 and, as discussed below, include the operations of The Continental Corporation since May 10, 1995.

For the six months ended June 30, 1995, CNA recognized net income of $409.5 million, or $6.57 per share, compared with a net loss of $114.3 million, or $1.89 per share, for the first half of 1994.

Net income for the first six months of 1995, excluding net realized investment gains, was $258.8 million, or $4.13 per share, compared with $.9 million, or a loss of $.02 per share (after preferred dividends of $2.5 million for the first six months of 1994). Net realized investment gains were $150.7 million or $2.44 per share, for the first half of 1995, compared with net realized investment losses of $115.2 million, or $1.87 per share, for the same period in 1994.

Consolidated revenues were $6.7 billion for the first half of 1995, compared with $5.3 billion for the first half of 1994.

The 1995 results cited above include the results of The Continental Corporation for the period May 10, 1995 through June 30, 1995. The merger of The Continental Corporation and CNA Financial Corporation was consummated on May 10, 1995. The total purchase price was approximately $1.125 billion which was financed through a five-year revolving credit facility involving 16 banks led by The First National Bank of Chicago and The Chase Manhattan Bank, N.A. The merger makes CNA the largest U.S. commercial lines insurer, the third largest U.S. property-casualty organization and the sixth largest U.S. insurance group, based on 1994 premium volume.

Dennis H. Chookaszian, chairman and chief executive officer of the CNA Insurance Companies, said, ``CNA continues to perform well in 1995. Our second quarter results reflect CNA's strong fundamentals as we merge the CNA and Continental operations.''

Mr. Chookaszian said, ``Our intention is to substantially consolidate the companies over a one-year time frame so that we eliminate duplicate products or systems. At this point, we are on track for completing the merger as planned.''

Mr. Chookaszian indicated that CNA earnings for the second quarter of 1995 were positively affected by two factors: favorable results in commercial lines, notably in workers' compensation, and net realized capital gains due to falling interest rates.

Edward J. Noha, chairman of the board, CNA Financial Corporation, said, ``In a challenging insurance environment, CNA is building for the future on a solid financial base. At June 30, 1995, the statutory surplus of CNA's property-casualty operations was approximately $5.4 billion, including $1.7 billion for Continental Insurance. The surplus of CNA's life insurance operations, at more than $1 billion, also was substantial.'' -0-

_____________________________________________________________________
CNA Financial Corporation     1995(a)                  1994
                        _____________________   _____________________
                           In       Earnings       In       Earnings
                        Millions    Per Share   Millions    Per Share
_____________________________________________________________________
SIX MONTHS ENDED JUNE 30
________________________
Revenues              $ 6,712.0          -       $ 5,335.5         -
Net Income (Loss)
 Excluding Net Realized
 Investment Gains/Losses
 and Discontinued
 Operations               258.8    $  4.13             0.9   $  (.02)
Realized Investment
 Gains (Losses)           150.7       2.44          (115.2)    (1.87)
Discontinued Operations       -          -               -         -
                      _________    _______       _________   _______
Net Income (Loss)     $   409.5    $  6.57       $  (114.3)  $ (1.89)
                      _________    _______       _________   _______

THREE MONTHS ENDED JUNE 30
__________________________
Revenues              $ 3,659.2          -       $ 2,731.0         -
Net Income Excluding
 Net Realized
 Investment
 Gains/Losses             127.2    $  2.03            17.7   $   .27
Realized Investment
 Gains (Losses)           129.5       2.09           (53.9)     (.88)
Discontinued Operations       -          -               -         -
                      _________    _______       _________   _______
Net Income (Loss)     $   256.7    $  4.12       $   (36.2)  $ (0.61)
                      _________    _______       _________   _______

_____________________________________________________________________
FINANCIAL POSITION                            June 30,    December 31
(in millions of dollars, except per share data) 1995          1994
_____________________________________________________________________
Assets                                        $62,657.4(b) $45,020.6
Stockholders' Equity(a)                         6,009.1      4,712.5
Unrealized Appreciation (Depreciation)
 Included in Stockholders' Equity(a)              526.3       (191.8)
Book Value per Common Share                       94.81        73.83
_____________________________________________________________________

_____________________________________________________________________
SUPPLEMENTAL FINANCIAL DATA     SECOND QUARTER          SIX MONTHS
PERIOD ENDED JUNE 30           1995(a)     1994       1995(a)   1994
(in millions of dollars)
_____________________________________________________________________
NET INCOME (LOSS) (EXCLUDING
 NET REALIZED INVESTMENT
 GAINS/LOSSES AND
 DISCONTINUED OPERATIONS):
Property and Casualty        $ 121.7      $   7.3   $ 239.6  $ (13.0)
Life                            23.5         22.3      46.5     37.4
                             _______      _______   _______  _______
  Total Insurance              145.2         29.6     288.1     24.4
Other                          (18.0)       (11.9)    (29.3)   (23.5)
                             _______      _______   _______  _______
                             $ 127.2      $  17.7   $ 258.8  $   0.9
                             _______      _______   _______  _______
                             _______      _______   _______  _______

REALIZED INVESTMENT GAINS
 (LOSSES), NET OF TAX AND
 POLICYHOLDERS' INTEREST:
Property and Casualty        $  76.7      $ (40.9)  $  85.7  $ (82.9)
Life                            52.2        (11.6)     63.7    (30.8)
                             _______      _______   _______  _______
  Total Insurance              128.9        (52.5)    149.4   (113.7)
Other                            0.6         (1.4)      1.3     (1.5)
                             _______      _______   _______  _______
                             $ 129.5      $ (53.9)  $ 150.7  $(115.2)
                             _______      _______   _______  _______
                             _______      _______   _______  _______

DISCONTINUED OPERATIONS,
 NET OF TAX:                 $     -      $     -   $     -  $     -

_____________________________________________________________________
(a) Includes results of The Continental Corporation from May 10, 1995.
(b) Includes accounts of The Continental Corporation.

                         CNA FINANCIAL CORPORATION

                   STATEMENT OF CONSOLIDATED OPERATIONS

_____________________________________________________________________
PERIOD ENDED JUNE 30            SECOND QUARTER          SIX MONTHS
                               1995(a)     1994       1995(a)   1994
(in millions of dollars,
 except per share data)
_____________________________________________________________________
Revenues:
 Premiums                  $ 2,868.9  $ 2,366.9  $ 5,384.9 $ 4,675.8
 Net investment income         514.7      384.1      945.6     730.4
 Realized investment gains
  (losses)                     205.8      (76.3)     241.6    (182.0)
 Other                          69.8       56.3      139.9     111.3
                           _________  _________  _________  ________
                             3,659.2    2,731.0    6,712.0   5,335.5
                           _________  _________  _________  ________

Benefits and expenses:
 Insurance claims and
  policyholders' benefits    2,418.2    2,180.5    4,573.9   4,301.7
 Other operating expenses      875.8      641.8    1,570.8   1,291.3
                           _________  _________  _________  ________
                             3,294.0    2,822.3    6,144.7   5,593.0
                           _________  _________  _________  ________
 Income (loss) from
  continuing operations
  before income tax            365.2      (91.3)     567.3    (257.5)
Income tax benefit (expense)  (108.5)      55.1     (157.8)    143.2
                           _________  _________  _________  ________
 Income (loss) from
  continuing operations        256.7      (36.2)     409.5    (114.3)
Income from discontinued
 operations, net of income
 taxes                             -          -          -         -
                           _________  _________  _________  ________
  Net income (loss)        $   256.7  $   (36.2) $   409.5  $ (114.3)
_____________________________________________________________________
_____________________________________________________________________

EARNINGS PER SHARE
__________________
Income (loss) from
 continuing operations     $    4.12  $   (0.61) $    6.57  $  (1.89)
Discontinued operations            -          -          -         -
                           _________  _________  _________  ________
Net income                 $    4.12  $   (0.61) $    6.57  $  (1.89)

Weighted average
 outstanding shares of
 common stock (in millions
 of shares)                     61.8       61.8       61.8      61.8
_____________________________________________________________________
_____________________________________________________________________

(a) Includes results of The Continental Corporation from May 10, 1995.

                    CNA FINANCIAL CORPORATION

_______________________________________________________________________
SUPPLEMENTAL STATUTORY DATA -
 OPERATIONS
                                   SECOND QUARTER        SIX MONTHS
PERIOD ENDED JUNE 30               1995      1994      1995      1994
(In million of dollars,
 except ratios)
_______________________________________________________________________
Property/Casualty affiliates:
 Premiums written                $2,554.1  $2,991.8  $5,102.2  $5,780.9
 Premiums earned                  2,452.8   2,857.5   5,061.1   5,578.9
 Underwriting loss                 (302.7)   (377.8)   (531.0)   (963.7)
 Investment income                  477.7     438.9     956.4     848.5

 Trade ratios:
 Loss                                80.0      81.7      79.2      85.1
 Combined (before policyholder
  dividends)                        109.2     109.6     108.2     114.2
 Dividends to policyholders           1.9       2.3       2.0       2.0

Life affiliates:
 Premium income                     767.6     683.7   1,528.8   1,399.1

CNA Insurance Net Premium Volume
________________________________

Property/Casualty affiliates:
 Commercial                      $  2,075  $  2,338  $  4,147  $  4,504
 Personal                             376       472       734       937
 Involuntary Risks                    103       181       221       340

Life affiliates:
 Individual                           152       132       298       257
 Group                                616       552     1,231     1,142
                                 ________  ________  ________  ________
                                 $  3,322  $  3,675  $  6,631  $  7,180
                                 ________  ________  ________  ________
                                 ________  ________  ________  ________
_______________________________________________________________________

_______________________________________________________________________
SUPPLEMENTAL STATUTORY DATA -
 FINANCIAL POSITION
                                           June 30     December 31
(In millions of dollars, except ratios)      1995         1994
_______________________________________________________________________
Property/Casualty affiliates:
 Statutory surplus                       $   5,404.2   $   4,835.2
 Written to surplus ratio                        2.1           2.1

 Claim and claim expense reserves           25,049.7      25,437.0
 Ratio of reserves to twelve months
  premium revenue                                2.4           2.3

Life affiliates:
 Statutory surplus                           1,061.7       1,054.6
 Life insurance in force                   142,799.5     127,432.8
_______________________________________________________________________

Note:  Statutory data includes The Continental Corporation's results
       for full periods for both 1995 and 1994.

CONTACT: CNA Financial Corp., Chicago

Kevin C. Shyne, 312/822-7402

or

Bill Shaffer, 312/822-4195