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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
JUNE 4, 1998
(Date of Report)
CNA SURETY CORPORATION
(Exact name of Registrant as specified in its charter)
1-13277
(Commission File No.)
DELAWARE 34-4144905
(State or other jurisdiction) (IRS Employer Identification No.)
CNA PLAZA, CHICAGO, ILLINOIS 60685
(Address of principal executive offices) (Zip code)
(312) 822-5000
(Registrant's telephone number, include area code)
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ITEM 5. OTHER EVENTS
See Exhibit 99 to this Form 8-K
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit 99 - CNA Surety Corporation Press Release issued on
June 4, 1998
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CNA SURETY CORPORATION
(Registrant)
By: /s/ John S. Heneghan
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John S. Heneghan
Vice President and Chief Financial Officer
Dated: June 4, 1998
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EXHIBIT INDEX
Exhibit No.
99. CNA Surety Corporation Press Release issued on June 4, 1998
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FOR IMMEDIATE RELEASE EXHIBIT 99
ANALYST CONTACT: MEDIA CONTACT:
John S. Heneghan Doreen Lubeck
312-822-1908 773-583-4331
FOR IMMEDIATE RELEASE
CNA SURETY ANNOUNCES SECONDARY OFFERING AND NEW DIVIDEND POLICY
CNA Surety Corporation (NYSE: SUR) today announced that it has filed a
registration statement with the Securities and Exchange Commission concerning a
secondary offering of approximately 4.4 million shares of its common stock
owned by certain stockholders formerly associated with Capsure Holdings Corp.
The offering will be made as soon as practicable following the effectiveness of
the registration statement. The offering will be made only by means of a
prospectus.
CNA Surety Corporation also announced that its Board of Directors recently
adopted a dividend policy and intends to pay a quarterly dividend beginning
with the fourth quarter of 1998. The declaration and payment of dividends,
including the amount and frequency of such dividends, is at the discretion of
the Board of Directors. Although not yet declared, the Company currently
expects that the initial quarterly dividend will be $0.08 per share.
CNA Surety Corporation, through its principal subsidiaries, Western Surety
Company and Universal Surety of America, provides surety and fidelity bonds in
all 50 states through a combined network of approximately 36,000 independent
agencies.
CNA is a registered service mark and trade name of CNA Financial Corporation.
# # #
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: The statements which are not historical facts contained in this release
are forward-looking statements that involve risks and uncertainties, including,
but not limited to, product and policy demand and market response risks, the
effect of economic conditions, the impact of competitive products, policies and
pricing, product and policy development, regulatory changes and conditions,
rating agency policies and practices, development of claims and the effect on
loss reserves, the performance of reinsurance companies under reinsurance
contracts with the Company, investment portfolio developments and reaction to
market conditions, the results of financing efforts, the actual closing of
contemplated transactions and agreements, the effect of the Company's
accounting policies, and other risks detailed in CNA Surety Corporation's
Securities and Exchange Commission filings. In addition, the declaration and
payment of dividends is subject to the discretion of the CNA Surety Corporation
Board of Directors and is dependent upon various factors, including CNA Surety
Corporation's financial condition, operating characteristics, projected
earnings and growth, capital requirements of its insurance subsidiaries, debt
service obligations and other factors deemed relevant by the Board of
Directors. No assurance can be given that the actual results of operations and
financial condition will conform to the forward-looking statements contained
herein.
