AM Best confirms credit ratings of CNA Financial Corporation and its subsidiaries

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OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best confirmed the financial strength rating (FSR) of A (excellent) and the long-term issuer credit ratings (long-term ICR) of “a +” (excellent) of the P&C subsidiaries of CNA Financial Corporation (CNAF) [NYSE: CNA], collectively known as CNA Insurance Companies (ANC). At the same time, AM Best confirmed the long-term ICR of “bbb +” (Bon) and all existing long-term issue credit ratings (long-term IRs) of CNAF. In addition, AM Best has confirmed the FSR of A (Excellent) and the long-term ICR of “a +” (Excellent) of the members of Western Surety Group. The outlook for these credit ratings (ratings) is stable. All of the companies named above are headquartered in Chicago, Illinois. (See below for a detailed list of companies and ratings.)

The ratings of CNA, which is considered the primary rating unit of CNAF, reflect the strength of its balance sheet, which AM Best considers to be very strong, as well as its adequate operational performance, favorable business profile and appropriate business risk management (ERM). The ratings also recognize the historic financial support provided by CNA’s ultimate parent company, Loews Corporation.

The ratings of the insurance companies CNA – of which the principal member is Continental Casualty Company – recognize the excellent level of risk-adjusted capitalization the company maintains, the consistently profitable operating results of the group and its firmly established position as a principal American editor of trade and trade articles. lines. In addition, the ratings recognize CNA’s favorable operating platform, which demonstrates a considerable geographic scope and product range, strong service capabilities and a diverse distribution channel with well-established agency relationships. The group’s specialty insurance segment remains the main driver of profitability and internal capital generation, while commercial insurance operations have steadily improved thanks to significant underwriting and expense management initiatives. The ratings also take into account the group’s continued focus on ERM and recognize the historic financial support provided by the Loews Corporation.

The intermittent negative impact of dropping CNA’s long-term care program, which continues to dampen CNAF’s overall profitability, and exposes its surplus and risk-adjusted capitalization to significant potential volatility, partially offsets these positive scoring factors. In addition, occasional catastrophic losses can impact underwriting margins in the short term. CNA was exposed to a computer intrusion in 1Q / 2021, but AM Best expects the overall impact of the intrusion to remain modest, both operationally and financially.

Western Surety Group’s ratings reflect the strength of its balance sheet, which AM Best considers to be the strongest, as well as its strong operational performance, neutral business profile and appropriate ERM.

Western Surety Group’s ratings reflect its highest level risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR), a consistently favorable claim reserve position and modest levels of leverage. subscription. In addition, Western Surety Group reported consistently profitable underwriting and operating results and a strong market position in contracts and various surety bonds. Western Surety Group’s tight focus on products in the highly competitive surety market environment, which can put pressure on underwriting margins in the short term, slightly offsets these positive rating factors.

The FSR of A (Excellent) and the long-term KPIs of “a +” (Excellent) were confirmed with stable outlook for the following P / C members of CNA insurance companies:

  • American Casualty Company of Reading, Pennsylvania

  • Columbia Casualty Company

  • Continental Accident Company

  • The Continental Insurance Company of New Jersey

  • The Continental Insurance Company

  • Hartford National Fire Insurance Company

  • North Rock Insurance Company Limited

  • Transport insurance company

  • Valley Forge Insurance Company

and for the following members of the Western Surety Group:

  • Surety Company of America

  • America’s Universal Surety

  • Western Surety Company

The following long-term IRs have been confirmed with a stable outlook:

CNA Financial Corporation –

– “bbb +” (bond) on $ 243 million of 7.25% senior unsecured debentures, maturing in 2023

– “bbb +” (bond) on $ 550 million of 3.95% senior unsecured notes, maturing in 2024

– “bbb +” (bond) on $ 500 million of 4.5% senior unsecured notes, maturing in 2026

– “bbb +” (bond) on $ 500 million of 3.45% senior unsecured notes, maturing in 2027

– “bbb +” (bond) on $ 500 million of 3.9% senior unsecured notes, maturing in 2029

– “bbb +” (Bond) on 500 million senior unsecured 2.05% notes, maturing in 2030

The following indicative long-term IRs on titles available under provisional registration have been confirmed with stable outlook:

CNA Financial Corporation –

– “bbb +” (good) on senior unsecured debt

– “bbb” (Bon) on senior subordinated debt

– “bbb-” (Bon) on the junior subordinated debt

– “bbb-” (Bon) on the preferred shares

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best Recent rating activity Web page. For more information on the use and limits of credit rating opinions, please see Best Credit Score Guide. For more information on the appropriate media use of Best’s credit ratings and AM Best press releases, please see Media Guide – Appropriate Use of Best Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit www.ambest.com.

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.


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