AM Best Comments on Credit Ratings of CNA Financial Corporation Following Cybersecurity Attack

Rhea-AI Summary

AM Best confirmed that the Credit Ratings of CNA Financial Corporation (CNA) remain unchanged following a cybersecurity attack that disrupted certain systems, including corporate email. The ratings outlook is stable. AM Best notes that CNA is actively managing the situation, implementing workarounds to maintain critical operations. Although the cyberattack's impact hasn't materially affected CNA's credit profile, AM Best will closely monitor developments for any potential changes regarding the company's enterprise risk management and reputation in the market.

Positive

• CNA's Credit Ratings remain unchanged amidst the cybersecurity incident.
• AM Best's assessment indicates the company's actions to mitigate damage are effective.

Negative

• The cybersecurity attack caused disruptions to CNA's systems, impacting corporate email.
• The situation remains fluid, and potential future impacts on CNA's reputation and business operations are uncertain.

AM Best has commented that the Credit Ratings (ratings) of CNA Financial Corporation (CNAF) [NYSE:CNA] and its insurance subsidiaries remain unchanged following the company’s disclosure that it sustained a sophisticated cybersecurity attack that caused a network disruption and impacted certain CNAF systems, including corporate email. The outlook of these ratings is stable.

Based on the information available as of today, AM Best believes that the company is working diligently through this matter with its team and third-party providers. Immediately after learning of the alleged information security incident, the company took steps to mitigate potential damage and take control of the situation by disconnecting its operating systems from its network, which continues to function. As part of its continuity plan, CNAF has implemented workarounds where possible to ensure that employees can continue to execute critical functions until systems are restored.

AM Best currently believes that the disruption caused by the cyberattack has not reached a level that is material to the credit profile of the enterprise. However, AM Best recognizes that the situation remains highly fluid and will continue to monitor developments closely for indications that the incident has damaged the company’s ability to conduct business, eroded its reputation and favorable standing in the markets it serves or results in a change in AM Best’s view of the company’s enterprise risk management assessment, which it currently views as appropriate.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s 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. Headquartered in the United States, the company does business in over 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 A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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FAQ

What happened to CNA Financial after the cybersecurity attack?

CNA Financial Corporation experienced a cybersecurity attack that disrupted its systems, but its Credit Ratings remain unchanged according to AM Best.

Are there any changes to CNA's Credit Ratings following the cyber incident?

No, AM Best has stated that CNA's Credit Ratings remain unchanged with a stable outlook.

How is CNA Financial managing the impacts of the cyberattack?

CNA Financial is implementing workarounds and has disconnected its operating systems from the network to mitigate damage.

What is AM Best's view on the impact of the cyberattack on CNA's credit profile?

AM Best believes the disruption caused by the cyberattack has not materially affected CNA's credit profile so far.

Will AM Best continue to monitor the situation with CNA Financial?

Yes, AM Best will closely monitor developments regarding the cyberattack's potential impact on CNA's business and reputation.