CNA to sell life business.

US insurer CNA has put its life insurance and reinsurance operations up for sale in a move to focus ...

US insurer CNA has put its life insurance and reinsurance operations
up for sale in a move to focus on commercial insurance. The operations
have a book value of $2.5bn, said CNA.


Last year, CNA sold its personal motor and homeowners insurance business
to Allstate. It aims to sell the life operations by the end of the
year.


Meanwhile, rating agency Moody's has downgraded its ratings of the
insurer's parent, CNA Financial, and of its subsidiaries, because of poor
earnings in 1999 and poor prospects in the current year. Moody's said that
CNA had addressed the rating agency's concern that reserves needed
strengthening, but said prices were still low for many products.


In 1999, CNA Financial made a $145m net operating loss, compared with a
$152m loss the year before. The 1999 loss included $363m after tax in loss
and reserve strengthening, as well as a $33m post-tax loss for workers'
compensation reinsurance.


CNA Re made a $75m net operating loss in the last quarter of 1999,
compared with a $2m loss a year before. For the whole year, CNA Re made a
$13m loss, compared with a $68m profit the previous year. In 1999, CNA
Re's after-tax catastrophe losses totalled $122m, a deterioration on the
$50m loss in 1998.


The reinsurer's net written property casualty premiums grew in the last
quarter of 1999 to $214m, compared with $99m in the same quarter of
1998.


The total for the year was $1.3bn. The fourth quarter property casualty
combined ratio rose from 122% in 1998 to 151% in 1999.
  • LinkedIn  
  • Save this article
  • Print this page  

You need to sign in to use this feature. If you don’t have an Insurance Post account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: