CNA reports record earnings for 1996.CHICAGO--(BUSINESS WIRE)--Feb. 12, 1997--CNA Financial Corporation (NYSE NYSE See: New York Stock Exchange :CNA (Certified NetWare Administrator) See Novell certification. ) announced net income of $964.8 million, or $15.51 per share, for 1996, compared with $757.0 million, or $12.14 per share, for 1995. Exclusive of securities transactions, net income for 1996 amounted to $577.7 million, or $9.25 per share, compared with $462.6 million, or $7.37 per share, for 1995. Revenues amounted to $17.0 billion in 1996, compared with $14.7 billion in 1995. For the fourth quarter of 1996, CNA reported net income of $194.9 million, or $3.13 per share, compared with $181.2 million, or $2.91 per share, for the comparable period in 1995. Exclusive of securities transactions, net income for the fourth quarter of 1996 amounted to $120.2 million, or $1.92 per share, compared with $100.7 million, or $1.60 per share, for the fourth quarter of 1995. Revenues for the fourth quarter 1996 amounted to $4.3 billion, compared with $4.0 billion for the fourth quarter of 1995. "CNA performed at record levels in 1996," 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 of CNA. "The company served customers well, produced strong profits and pursued a range of opportunities for business expansion." Among the contributing factors to the strong earnings, Mr. Chookaszian cited improved loss experience in property/casualty businesses, efficiencies from the 1995 merger with The Continental Corporation and continuing growth and profit in the individual life business. In addition, 1996 earnings were bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by gains on CNA's investment portfolio. Business expansion initiatives included an agreement between CNA and Capsure Holdings Corporation to form 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, subject to final Capsure shareholder approval. Combining the surety businesses of CNA and Capsure, the new company will be the largest U.S. surety organization. Other initiatives expanded CNA's 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. , managed care and life insurance businesses. CNA has continued its expansion efforts in 1997 through the formation of Hedge hedge, ornamental or protective barrier composed of shrubs or small trees growing in close rows. The plants may be allowed to grow naturally or may be trimmed to various heights and shapes (see topiary work). Financial Products, Inc., which will pursue opportunities to securitize Securitize The practice of a company selling accounts receivables or other debts owed to it. The third party that buys the debt assumes ownership of it and the responsibility for collecting the debts, and keeps the repayments when made. insurance risk, and an agreement by which CNA will become a co-owner of 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 As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Co., Ltd., 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. "These initiatives are examples of how CNA is positioning itself for continued growth and leadership as the insurance marketplace redefines itself," said Mr. Chookaszian. 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 "CNA's success in 1996 reflects a heritage of service and commitment. Continental Casualty Company, the founding company of CNA, goes back to 1897. CNA has grown by staying focused on its fundamental strengths: a solid financial base, lasting business relationships and a strong will to stay in the forefront of its chosen markets." During its first century, CNA has become one of the top 10 U.S. insurance organizations and the leading provider of commercial insurance. CNA is the registered service mark and trade name of CNA Financial Corporation. -0-
CNA FINANCIAL CORPORATION
1996 1995(a)
___________________ ___________________
In Earnings In Earnings
Millions Per Share Millions Per Share
_____________________________________________________________________
THREE MONTHS ENDED DEC. 31
__________________________
Revenues $ 4,321.7 - $ 3,986.8 -
Net Income Excluding
Net Realized Investment
Gains/Losses 120.2 $ 1.92 100.7 $ 1.60
Net Realized Investment Gains 74.7 1.21 80.5 1.31
_________ ________ _________ ________
Net income $ 194.9 $ 3.13 $ 181.2 $ 2.91
_________ ________ _________ ________
TWELVE MONTHS ENDED DEC. 31
___________________________
Revenues $16,987.8 - $14,699.7 -
Net Income Excluding
Net Realized Investment
Gains/Losses 577.7 $ 9.25 462.6 $ 7.37
Net Realized Investment Gains 387.1 6.26 294.4 4.77
_________ ________ _________ ________
Net income $ 964.8 $ 15.51 $ 757.0 $ 12.14
_________ ________ _________ ________
FINANCIAL POSITION
DEC. 31 1996 1995
(In millions of dollars,
except per share data)
____________________________________________________________________
Assets $60,734.7 $60,360.4
Stockholders' Equity 7,059.8 6,735.5
Net Unrealized Appreciation
included in Stockholders' Equity 298.8 933.1
Book Value per Common Share 111.81 106.56
SUPPLEMENTAL FINANCIAL DATA FOURTH QUARTER TWELVE MONTHS
PERIOD ENDED DEC. 31 1996 1995 1996 1995(a)
(In millions of dollars)
____________________________________________________________________
NET INCOME (EXCLUDING NET
REALIZED INVESTMENT GAINS/LOSSES):
Property and Casualty $ 113.2 $ 95.3 $ 575.8 $ 457.0
Life 32.4 30.7 109.9 103.8
_______ _______ _______ _______
Total Insurance 145.6 126.0 685.7 560.8
Interest expense and other (25.4) (25.3) (108.0) (98.2)
_______ _______ _______ _______
$ 120.2 $ 100.7 $ 577.7 $ 462.6
_______ _______ _______ _______
_______ _______ _______ _______
REALIZED INVESTMENT GAINS (LOSSES),
NET OF TAX AND POLICYHOLDERS' INTEREST:
Property and Casualty $ 71.1 $ 69.9 $ 303.5 $ 207.9
Life 16.6 12.5 95.6 85.4
_______ _______ _______ _______
Total Insurance 87.7 82.4 399.1 293.3
Other (13.0) (1.9) (12.0) 1.1
_______ _______ _______ _______
$ 74.7 $ 80.5 $ 387.1 $ 294.4
_______ _______ _______ _______
_______ _______ _______ _______
(a) Includes the results of The Continental Corporation from
May 10, 1995.
CNA FINANCIAL CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
Period Ended Dec. 31 Fourth Quarter Twelve Months
1996 1995 1996 1995(a)
(In millions of dollars,
except per share data) ______ ______ ______ ______
Revenues:
Premiums $ 3,430.0 $ 3,154.0 $13,479.0 $11,735.1
Investment income 600.1 579.0 2,276.0 2,076.6
Realized investment
gains 131.5 124.5 618.6 463.8
Other 160.1 129.3 614.2 424.2
_______ _______ ________ ________
4,321.7 3,986.8 16,987.8 14,699.7
_______ _______ ________ ________
Benefits and expenses:
Insurance claims and
policyholders'
benefits 2,969.7 2,636.9 11,370.6 9,951.7
Other operating expenses 1,078.6 1,117.7 4,272.2 3,705.6
_______ _______ ________ ________
4,048.3 3,754.6 15,642.8 13,657.3
_______ _______ ________ ________
Income before income
tax 273.4 232.2 1,345.0 1,042.4
Income tax expense 78.5 51.0 380.2 285.4
______ ______ ______ ______
Net income $ 194.9 $ 181.2 $ 964.8 $ 757.0
______ ______ ______ ______
______ ______ ______ ______
Earnings Per Share
__________________
Net income $ 3.13 $ 2.91 $ 15.51 $ 12.14
______ ______ ______ ______
______ ______ ______ ______
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 Fourth Quarter Twelve Months
Data - Operations(b) 1996 1995 1996 1995
Period Ended Dec. 31
(In millions of dollars,
except ratios) ______ ______ ______ ______
Property/Casualty
affiliates:
Premiums written $ 2,657.9 $ 2,456.4 $10,572.4 $10,160.0
Premiums earned 2,627.8 2,360.0 10,246.7 9,847.4
Underwriting loss (315.9) (240.1) (1,036.2) (1,095.7)
Investment income 451.8 465.5 1,788.1 1,890.4
Trade ratios:
Loss 77.5% 76.7% 76.8% 78.6%
Combined (before
policyholder
dividends) 108.0% 106.6% 107.2% 107.8%
Dividends to
policyholders 2.0% 1.9% 1.4% 2.1%
Life affiliates:
Premium income $ 932.0 $ 781.6 $ 3,662.8 $ 3,123.2
CNA Insurance Companies
Net Written Premium
Volume
_______________________
Property/Casualty
affiliates:
Commercial $ 2,179 $ 2,114 $ 8,612 $ 8,453
Personal 413 277 1,731 1,349
Involuntary risks 65 65 229 358
Life affiliates:
Individual 211 170 789 623
Group 721 612 2,874 2,500
______ ______ ______ ______
$ 3,589 $ 3,238 $ 14,235 $ 13,283
______ ______ ______ ______
______ ______ ______ ______
Supplemental Statutory Dec. 31 Dec. 31
Data - Financial Position(b) 1996 1995
(In millions of dollars,
except ratios) ______ ______
Property/Casualty
affiliates:
Statutory surplus $ 6,348.8 $ 5,706.5
Written to surplus ratio 1.6 1.7
Claim and claim expense reserves 23,734.9 24,955.0
Ratio of reserves to twelve
months premium revenue 2.3 2.5
Life affiliates:
Statutory surplus 1,163.4 1,127.6
Life insurance in force 237,008.8 166,046.5
_________ _________
(b) Statutory data includes The Continental Corporation's results
for full periods for both 1996 and 1995.
CONTACT: CNA Financial Corporation, Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. Roger Morris, 312/822-4195 or Kevin KEVIN Keepers of the Eternal Vigilance of the Islamic Nation (fictional, from White Teeth by Zadie Smith) C. Shyne, 312/822-7402 |
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