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 âa +â (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 âbbb +â (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 âa +â (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 âa +â (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 –
– âbbb +â (bond) on $ 243 million of 7.25% senior unsecured debentures, maturing in 2023
– âbbb +â (bond) on $ 550 million of 3.95% senior unsecured notes, maturing in 2024
– âbbb +â (bond) on $ 500 million of 4.5% senior unsecured notes, maturing in 2026
– âbbb +â (bond) on $ 500 million of 3.45% senior unsecured notes, maturing in 2027
– âbbb +â (bond) on $ 500 million of 3.9% senior unsecured notes, maturing in 2029
– âbbb +â (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 –
– âbbb +â (good) on senior unsecured debt
– âbbbâ (Bon) on senior subordinated debt
– âbbb-â (Bon) on the junior subordinated debt
– “bbb-” (Bon) on the preferred shares
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