EXHIBIT 99.1
[CNA LOGO]
FOR IMMEDIATE RELEASE
CONTACT:
MEDIA: ANALYSTS:
Charles M. Boesel, 312/822-2592 Dawn M. Jaffray, 312/822-7757
Katrina W. Parker, 312/822-5167
CNA FINANCIAL ANNOUNCES AGREEMENT
TO SELL GROUP BENEFITS BUSINESS
CHICAGO, DECEMBER 1, 2003 --- CNA Financial Corporation (NYSE: CNA) today
announced that it has entered into a binding agreement to sell its Group
Benefits business to Hartford Financial Services Group, Inc. (NYSE: HIG) for
approximately $500 million. The business sold includes group life and accident,
short and long term disability and certain other products. CNA`s group long term
care business is excluded from the sale. The transaction is expected to be
completed on or before December 31, 2003, subject to certain customary closing
conditions and regulatory approvals. Upon completion of the sale, it is
anticipated that approximately 1,200 employees will transfer to The Hartford.
"The sale of Group Benefits enables us to sharpen our operational focus and move
forward on our recently announced capital plan," stated Stephen W. Lilienthal,
Chairman and Chief Executive Officer of the CNA insurance companies. "We are
pleased to have found a buyer with such a strong position in the employee
benefits business."
The purchase price is subject to certain adjustments including changes in the
level of statutory surplus through the closing date. The sale is expected to
provide additional capital to CNA's principal insurance subsidiary, Continental
Casualty Company (CCC), as contemplated in CNA's recently announced capital
plan. CNA expects to recognize an after-tax GAAP loss of approximately $200
million on the sale in the fourth quarter of 2003; however, this amount will
fluctuate for changes in the market value of the investment assets supporting
this business. CNA expects to recognize an after-tax statutory gain on the sale
in excess of $100 million.
ABOUT CNA
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; 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.
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ABOUT THE HARTFORD
The Hartford Financial Services Group, Inc. is one of the nation's largest
investment and insurance companies, with 2002 revenues of $16.4 billion. The
company is a leading provider of investment products, life insurance and group
benefits; automobile and homeowners products; and business property and casualty
insurance.
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; 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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