Exhibit 99.1
FOR IMMEDIATE RELEASE
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CONTACT:
MEDIA: ANALYSTS:
Charles M. Boesel, 312/822-2592 Dawn M. Jaffray, 312/822-7757
Katrina W. Parker, 312/822-5167
CNA FINANCIAL ANNOUNCES COMPLETION OF PREVIOUSLY ANNOUNCED
SALE OF
PREFERRED STOCK TO LOEWS CORPORATION
CHICAGO, November 24, 2003 -- CNA Financial Corporation (NYSE: CNA) today
announced that it has completed the previously announced sale of $750 million
of its participating convertible preferred stock to Loews Corporation (Loews),
the owner of approximately 90% of CNA's outstanding common stock. The sale of
the preferred shares is part of the Company's previously announced capital
plan. The preferred stock has terms that make it economically equivalent to
CNA's common stock. CNA has approximately 223.6 million outstanding shares of
common stock. The preferred shares will convert into 32,327,015 shares of CNA
common stock, utilizing a conversion price per share of common stock that is
based on average market prices of CNA common stock from November 17, 2003
through November 21, 2003. Upon conversion, Loews will own approximately 91%
of CNA's outstanding common stock of approximately 255.9 million shares.
Conversion will take place when the Company satisfies applicable stock
exchange requirements.
CNA is the country's fourth largest commercial insurance writer and the 11th
largest property and casualty company. CNA's insurance products include
standard commercial lines, specialty lines, surety, marine and other property
and casualty coverages; life and accident insurance; group long term care,
disability and life insurance; and pension products. CNA services include risk
management, information services, underwriting, risk control and claims
administration. For more information, please visit CNA at www.cna.com. CNA is
a registered service mark, trade name and domain name of CNA Financial
Corporation.
FORWARD-LOOKING STATEMENT
The statements contained in this press release, which are not historical
facts, are forward-looking statements. When included in this press release,
the words "believes," "expects," "intends," "anticipates," "estimates," and
analogous expressions are intended to identify forward-looking statements.
Forward-looking statements include expected developments in the insurance
business of CNA (the "Company"), including losses for asbestos, environmental
pollution and mass tort claims; the Company's expectations concerning its
revenues, earnings, expenses and investment activities; expected cost savings
and other results from the Company's expense reduction and restructuring
activities; and the Company's proposed actions in response to trends in its
business.
Such statements, and the financial condition and results of operations of the
Company and the price of the Company's common stock, are subject to a variety
of inherent risks and uncertainties. These risks and uncertainties could cause
actual results to differ materially from those projected. Such risks and
uncertainties include, among others: general economic and business conditions,
including inflationary pressures on medical care costs, construction costs and
other economic sectors that increase the severity of claims; changes in
financial markets such as fluctuations in interest rates, long-term periods of
low interest rates, credit conditions and currency, commodity and stock
prices; the effects of corporate bankruptcies, such as Enron and WorldCom, on
surety bond claims, as well as on capital markets and on the markets for
directors & officers and errors & omissions coverages; changes in foreign or
domestic political, social and economic conditions; regulatory initiatives and
compliance with governmental regulations;
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judicial decisions and rulings, including interpretation of policy provisions,
decisions regarding coverage and theories of liability, trends in litigation
and the outcome of any litigation involving the Company; changes in tax laws
and regulations; regulatory limitations and restrictions upon the Company and
its insurance subsidiaries; the impact of competitive products, policies and
pricing and the competitive environment in which the Company operates,
including changes in the Company's books of business; product and policy
availability and demand and market responses, including the level of ability
to obtain rate increases and decline or non-renew underpriced accounts, to
achieve premium targets and profitability and to realize growth and retention
estimates; development of claims and the impact on loss reserves, including
changes in claim settlement practices; the effectiveness of current
initiatives by claims management to reduce loss and expense ratio through more
efficacious claims handling techniques; the performance of reinsurance
companies under reinsurance contracts with the Company; results of financing
efforts, including the availability of bank credit facilities; changes in the
Company's composition of operating segments; weather and other natural
physical events, including the severity and frequency of storms, hail,
snowfall and other winter conditions, as well as of natural disasters such as
hurricanes and earthquakes; man-made disasters, including the possible
occurrence of terrorist attacks and the effect of the absence of applicable
terrorism legislation on coverages; the occurrence of epidemics; exposure to
liabilities due to claims made by insureds and others relating to asbestos
remediation and health-based asbestos impairments, and exposure to liabilities
for environmental pollution and other mass tort claims; whether a national
privately financed trust to replace litigation of asbestos claims with
payments to claimants from the trust will be established or approved through
federal legislation, or, if established and approved, whether it will contain
funding requirements in excess of the Company's established loss reserves or
carried loss reserves; the sufficiency of the Company's loss reserves and the
possibility of future increases in reserves; the level of success in
integrating acquired businesses and operations, and in consolidating existing
ones; the possibility of changes in the Company's ratings by ratings agencies,
including the inability to access certain markets or distribution channels and
the required collateralization of future payment obligations as a result of
such changes, and changes in rating agency policies and practices; the actual
closing of contemplated transactions and agreements; and various other matters
and risks (many of which are beyond the Company's control) detailed in the
Company's Securities and Exchange Commission filings.
These forward-looking statements speak only as of the date of this press
release. The Company expressly disclaims any obligation or undertaking to
release any updates or revisions to any forward-looking statement contained in
this press release to reflect any change in the Company's expectations with
regard thereto or any change in events, conditions or circumstances on which
any statement is based.
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