AM Best Upgrades Issuer Credit Ratings of CNA Financial Corporation and Its Subsidiaries
The ratings of CNA reflect its balance sheet strength, which AM Best categorizes 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 ultimate parent,
The Long-Term ICR upgrades reflect AM Best’s view that CNA’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is sufficient to absorb material potential deterioration in the group’s legacy long-term care (LTC) business, while remaining supportive of the current very strong balance sheet strength assessment.
The ratings of
CNA’s balance sheet strength is derived from its level of risk-adjusted capitalization, as measured by BCAR, which has been maintained consistently well in excess of levels required to support AM Best’s very strong balance sheet assessment. The investment portfolio is conservative and well-managed, and loss reserves have generally developed favorably. CNA also utilizes a prudent reinsurance program to help manage volatility.
CNA’s ratings also consider its consistent and profitable operating results, as well as its established position as a leading writer within the
Western Surety Group’s balance sheet strength is derived from its strongest risk-adjusted capitalization, as measured by BCAR. In addition, the ratings reflect the group’s historically profitable underwriting and operating performance, and position as a market leader in the contract and miscellaneous surety bond markets. Partially offsetting these positive rating factors are Western Surety Group’s narrow product focus and exposure to high severity losses that result in potentially volatile operating results, as well as the highly competitive environment in the surety market, which will continue to put pressure on underwriting margins over the near term.
At
The Long-Term ICRs have been upgraded to “a+’ from “a” and the FSR of A (Excellent) affirmed, with the Long-Term ICR outlooks revised to stable from positive and the FSR outlook maintained at stable, for the following P/C members of the 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 following Long-Term IRs have been upgraded, with the outlooks revised to stable from positive:
CNA Financial Corporation—
-- to “bbb+” from “bbb” on
-- to “bbb+” from “bbb” on
-- to “bbb+” from “bbb” on
-- to “bbb+” from “bbb” on
-- to “bbb+” from “bbb” on
-- to “bbb+” from “bbb” on
The following indicative Long-Term IRs on securities available under the shelf registration have been upgraded, with the outlooks revised to stable from positive:
CNA Financial Corporation—
-- to “bbb+” from “bbb” on senior unsecured debt
-- to “bbb” from “bbb-” on senior subordinated debt
-- to “bbb-” from “bb+” on junior subordinated debt
-- to “bbb-” from “bb+” 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 Understanding 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 rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2019 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Source: AM Best
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