{"id":511205,"date":"2021-07-08T17:03:07","date_gmt":"2021-07-08T21:03:07","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-cna-financial-corporation-and-its-subsidiaries\/"},"modified":"2021-07-08T17:03:07","modified_gmt":"2021-07-08T21:03:07","slug":"am-best-affirms-credit-ratings-of-cna-financial-corporation-and-its-subsidiaries","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-cna-financial-corporation-and-its-subsidiaries\/","title":{"rendered":"AM Best Affirms Credit Ratings of CNA Financial Corporation and Its Subsidiaries"},"content":{"rendered":"

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AM Best Affirms Credit Ratings of CNA Financial Corporation and Its Subsidiaries<\/b><\/p>\n

OLDWICK, N.J.–(BUSINESS WIRE<\/a>)–AM Best <\/b>has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of \u201ca+\u201d (Excellent) of the property\/casualty (P\/C) subsidiaries of CNA Financial Corporation(CNAF) [NYSE: CNA], collectively known as CNA Insurance Companies(CNA). Concurrently, AM Best has affirmed the Long-Term ICR of \u201cbbb+\u201d (Good) and all existing Long-Term Issue Credit Ratings (Long-Term IR) of CNAF. Additionally, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of \u201ca+\u201d (Excellent) of the members of Western Surety Group. The outlook of these Credit Ratings (ratings) is stable. All above named companies are headquartered in Chicago, IL. (See below for a detailed listing of the companies and ratings.)\n<\/p>\n

\nThe ratings of CNA, which is considered the lead rating unit in the CNAF enterprise, 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\u2019s ultimate parent, Loews Corporation.\n<\/p>\n

\nThe ratings of the CNA Insurance Companies \u2013 whose lead member is Continental Casualty Company \u2013 recognize the excellent level of risk-adjusted capitalization the company maintains, the group\u2019s consistently profitable operating results, and its firmly established position as a leading U.S. writer of commercial and specialty lines. In addition, the ratings recognize CNA\u2019s favorable operating platform, which demonstrates considerable geographic and product line scope, strong service capabilities and diversified distribution channel with well-established agency relationships. The group\u2019s specialty insurance segment remains the primary engine of profitability and internal capital generation, while commercial insurance operations have steadily improved through significant underwriting and expense management initiatives. The ratings also consider the group\u2019s continued focus on ERM and acknowledge the historical financial support provided by the Loews Corporation.\n<\/p>\n

\nPartially offsetting these positive rating factors is the intermittent adverse impact of CNA\u2019s discontinued long-term care program that continues to serve as a drag on CNAF\u2019s overall profitability, and exposes its surplus and risk-adjusted capitalization to significant potential volatility. Additionally, occasional catastrophe losses may impact underwriting margins over the near term. CNA\u2019s was exposed to a cyber-related intrusion in 1Q\/2021, but AM Best expects that the overall impact of the intrusion will remain modest, both operationally and financially.\n<\/p>\n

\nThe ratings of 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.\n<\/p>\n

\nWestern Surety Group\u2019s ratings reflect its risk-adjusted capitalization at the strongest level, as measured by Best\u2019s Capital Adequacy Ratio (BCAR), consistently favorable loss reserve position and modest levels of underwriting leverage. Additionally, Western Surety Group has reported consistently profitable underwriting and operating performance, and a strong market position in the contract and miscellaneous surety bond markets. Slightly offsetting these positive rating factors is Western Surety Group\u2019s narrow product focus in the highly competitive surety market environment, which may put pressure on underwriting margins over the near term.\n<\/p>\n

\nThe FSR of A (Excellent) and the Long-Term ICRs of \u201ca+\u201d (Excellent) have been affirmed with stable outlooks for the following P\/C members of the CNA Insurance Companies:\n<\/p>\n