AM Best Revises Outlooks to Positive for CNA Financial Corporation and Its Subsidiaries
AM Best has revised the outlook for CNA Financial (NYSE: CNA) and its subsidiaries to positive from stable, while affirming their Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of 'a+'. The positive outlook reflects CNA's consistently strong operating performance, favorable underwriting and investment metrics compared to peers, and support from its 92% shareholder Loews
The ratings acknowledge CNA's very strong balance sheet, adequate operating performance, favorable business profile, and appropriate enterprise risk management. The company maintains the strongest level of risk-adjusted capitalization and has established itself as a leading U.S. writer of commercial and specialty lines, with the specialty insurance segment being its primary profitability driver.
AM Best ha rivisto l'outlook per CNA Financial (NYSE: CNA) e le sue sussidiarie a positivo da stabile, confermando il loro Rating di Solidità Finanziaria di A (Eccellente) e i Rating di Credito a Lungo Termine di 'a+'. L'outlook positivo riflette le costanti eccellenti performance operative di CNA, metriche favorevoli di sottoscrizione e investimento rispetto ai concorrenti, e il supporto del 92% del suo azionista Loews.
I rating riconoscono il patrimonio netto molto solido di CNA, un'adeguata performance operativa, un profilo aziendale favorevole e una gestione appropriata del rischio d'impresa. La compagnia mantiene il livello più elevato di capitalizzazione aggiustata per il rischio e si è affermata come uno dei principali scrittori statunitensi di linee commerciali e specialistiche, con il segmento assicurativo specializzato che è il suo principale motore di redditività.
AM Best ha revisado la perspectiva de CNA Financial (NYSE: CNA) y sus filiales a positiva desde estable, al tiempo que confirma su Rating de Fortaleza Financiera de A (Excelente) y sus Ratings de Crédito a Largo Plazo de 'a+'. La perspectiva positiva refleja el rendimiento operativo consistentemente fuerte de CNA, métricas de suscripción e inversión favorables en comparación con sus pares, y el apoyo del 92% de su accionista Loews.
Las calificaciones reconocen el balance muy sólido de CNA, su rendimiento operativo adecuado, un perfil de negocio favorable y una gestión del riesgo empresarial apropiada. La empresa mantiene el nivel más fuerte de capitalización ajustada por riesgo y se ha establecido como un líder en EE. UU. en la redacción de líneas comerciales y especializadas, siendo el segmento de seguros especializados su principal impulsor de rentabilidad.
AM Best는 CNA Financial (NYSE: CNA)와 그 자회사의 전망을 안정적에서 긍정적으로 수정하며, A (우수) 재무 건전성 등급과 'a+' 장기 발행자 신용 등급을 확인했습니다. 긍정적인 전망은 CNA의 지속적으로 강력한 운영 성과, 동종 업계 대비 유리한 인수 및 투자 지표, 그리고 92% 지분을 보유한 주주 Loews의 지원을 반영합니다.
이 등급은 CNA의 매우 강한 재무 구조, 적절한 운영 성과, 유리한 비즈니스 프로필 및 적절한 기업 위험 관리 능력을 인정합니다. 회사는 가장 높은 수준의 위험 조정 자본화를 유지하고 있으며, 상업 및 전문 라인의 주요 보험 작성자로 자리잡고 있습니다. 전문 보험 부문이 주요 수익원입니다.
AM Best a révisé les perspectives pour CNA Financial (NYSE: CNA) et ses filiales à positif depuis stable, tout en maintenant leur Note de Solidité Financière à A (Excellent) et leurs Notes de Crédit à Long Terme à 'a+'. Cette perspective positive reflète la performance opérationnelle constamment forte de CNA, des métriques de souscription et d'investissement favorables par rapport à ses concurrents, ainsi que le soutien de son actionnaire à 92%, Loews.
Les notations reconnaissent le bilan très solide de CNA, des performances opérationnelles adéquates, un profil commercial favorable et une gestion des risques d'entreprise adaptée. L'entreprise maintient le niveau le plus élevé de capitalisation ajustée au risque et s'est imposée comme un leader américain en matière de rédaction d'assurances commerciales et spécialisées, le segment des assurances spécialisées étant son principal moteur de rentabilité.
AM Best hat den Ausblick für CNA Financial (NYSE: CNA) und deren Tochtergesellschaften von stabil auf positiv geändert und gleichzeitig deren Finanzstärke-Rating von A (Ausgezeichnet) sowie die Langfristratinge von 'a+' bestätigt. Der positive Ausblick spiegelt die konstant starken Betriebsergebnisse von CNA, günstige Underwriting- und Investitionskennzahlen im Vergleich zu Mitbewerbern sowie die Unterstützung durch den 92%igen Aktionär Loews wider.
Die Ratings bestätigen die sehr starke Bilanz von CNA, eine angemessene Betriebsleistung, ein günstiges Geschäftsprofil und ein angemessenes Unternehmensrisikomanagement. Das Unternehmen hält das stärkste Niveau an risikoadjustierter Kapitalisierung und hat sich als führender US-Anbieter von gewerblichen und spezialisierten Linien etabliert, wobei der Spezialversicherungsbereich der Haupttreiber der Rentabilität ist.
- Strong risk-adjusted capitalization as measured by Best's Capital Adequacy Ratio (BCAR)
- Consistently profitable operating results
- Leading position in U.S. commercial and specialty lines
- Specialty insurance segment drives profitability and internal capital generation
- Strong financial support from 92% shareholder Loews
- Adverse impacts from discontinued long-term care program affecting profitability and surplus
- Exposure to catastrophe losses in commercial property lines
- Reserve uncertainties in litigation-sensitive casualty lines
- Cyber-related underwriting exposures
Insights
The positive outlooks are reflective of the consistently positive operating performance of CNA underpinned by its positive underwriting and investment metrics, which compare favorably to its commercial casualty peers. Additionally, the outlooks reflect the supportive ownership of CNAF.
CNA, along with its Credit Ratings (ratings), is considered the lead rating unit in the CNAF enterprise. CNA’s credit ratings reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM). The ratings also acknowledge the historical financial support provided by CNA’s diversified
The ratings of CNA—whose lead member is Continental Casualty Company—recognize the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), the group’s consistently profitable operating results, as well as its well established position as a leading
Partially offsetting these positive factors are the intermittent adverse impacts of CNA’s discontinued long-term care program, which has at times served as a drag on CNA’s overall profitability and has exposed its surplus and risk-adjusted capitalization to potential volatility. Additional factors affecting the group’s credit profile are its moderate underwriting exposures to catastrophe losses associated with its commercial property product lines, reserve uncertainties, which generally affect litigation-sensitive casualty lines, as well as cyber-related and other underwriting exposures.
The ratings of the Western Surety Group reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate ERM.
Additionally, Western Surety Group’s ratings reflect its strongest risk-adjusted capitalization, as measured by BCAR, its consistently favorable loss reserve position and its modest level of underwriting leverage. Western Surety Group maintains a strong market position in contract and miscellaneous surety bond markets and has consistently reported profitable underwriting and operating performance. Partially offsetting these positive factors are Western Surety Group’s narrow product focus in a highly competitive surety market, which may put pressure on underwriting margins over the near term.
The outlooks have been revised to positive from stable and the FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed for the following members of CNA Insurance Companies:
-
American Casualty Company of
Reading, Pennsylvania - Columbia Casualty Company
- Continental Casualty Company
-
The Continental Insurance Company of
New Jersey - The Continental Insurance Company
-
National Fire Insurance Company of
Hartford - North Rock Insurance Company Limited
- Transportation Insurance Company
- Valley Forge Insurance Company
The outlooks have been revised to positive from stable and the FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed for the following members of Western Surety Group:
- Surety Bonding Company of America
- Universal Surety of America
- Western Surety Company
The following Long-Term IRs have been affirmed with the outlooks revised to positive from stable:
CNA Financial Corporation —
-- “bbb+” (Good) on
-- “bbb+” (Good) on
-- “bbb+” (Good) on
-- “bbb+” (Good) on
-- “bbb+” (Good) on
-- “bbb+” (Good) on
The following indicative Long-Term IRs on securities available under the shelf registration have been affirmed with the outlooks revised to positive from stable:
CNA Financial Corporation —
-- “bbb+” (Good) on senior unsecured debt
-- “bbb” (Good) on senior subordinated debt
-- “bbb-” (Good) on junior subordinated debt
-- “bbb-” (Good) on preferred stock
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Elizabeth Blamble
Senior Financial Analyst
+1 908 882 1661
elizabeth.blamble@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Alan Murray
Director
+1 908 882 2195
alan.murray@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com
Source: AM Best
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