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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) March 8, 2000
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CNA FINANCIAL CORPORATION
(Exact Name of Registrant as Specified in Charter)
Delaware 1-5823 36-6169860
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
CNA Plaza, Chicago, Illinois 60685
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (312) 822-5000
(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events
Exhibit No. Description
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99.01 On March 8, 2000, CNA Financial Corporation issued a press
release announcing that it is exploring the sale of its
individual life insurance and life reinsurance businesses. A
copy of the press release is attached hereto as Exhibit 99.01
and is incorporated herein by reference.
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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 FINANCIAL CORPORATION
Date: March 9, 2000 By: S/ROBERT V. DEUTSCH
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Robert V. Deutsch
Senior Vice President and
Chief Financial Officer
Exhibit 99.01
CNA
CNA Plaza
Chicago, IL 60685
Media:
Clark Walter
312-822-1454
Analysts:
Donald P. Lofe, Jr.
312-822-3993
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NEWS
For Immediate Release
CNA Announces it is Exploring the Sale of Individual Life Insurance and Life
Reinsurance Businesses
CHICAGO, IL, March 8, 2000 -- CNA, the nation's second largest commercial
insurer, today announced that, consistent with its strategy to sharpen its focus
on insurance products and services for businesses, the company is exploring the
sale of its individual life insurance and life reinsurance businesses.
Bernard L. Hengesbaugh, chairman and chief executive officer of CNA, the
insurance unit of CNA Financial Corporation (NYSE: CNA), said, "This initiative
is the latest in a series of steps we've taken recently to make CNA the
underwriter of choice in the business market. We believe this strategy plays to
our strengths at a time of tremendous change in the global financial services
industry and is in the best interests of our customers, stockholders, employees,
and business partners."
CNA is a leader in small business, middle market and selective large risk
management accounts. It provides customers with specialty and property-casualty
products, along with risk management services and a broad array of group
insurance products and services. Last year, as part of its strategy to focus on
its worldwide business insurance and services operations, CNA transferred its
personal auto and homeowners insurance business to Allstate Corporation.
CNA's life operations provide a full line of individual life insurance,
individual long-term care insurance and annuities. They also provide retirement
services to institutions in the form of investment products and administration
services. CNA's life reinsurance business reinsures individual life and health
products sold by other life insurance companies.
"Our life and life reinsurance operations represent a unique combination of
experience and innovation," said CNA Life President Peter E. Jokiel. "These
business units have strong and proven management teams and an outstanding group
of talented and dedicated employees who have successfully developed leading
positions in their targeted markets through product innovation, technology
investment, underwriting excellence, efficient infrastructure, and strong
distribution partnerships.
-more-
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"We are committed to supporting these relationships, systems and standards of
excellence throughout this period during which we are exploring the sale of our
life and life reinsurance operations," said Jokiel.
CNA has engaged Donaldson, Lufkin & Jenrette Securities Corporation to assist
with the potential sale of the life operations.
CNA is a registered service mark, trade name and domain name of CNA Financial
Corporation.
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FORWARD LOOKING STATEMENT
The statements contained in this press release, which are not historical facts,
are forward-looking statements. When included in this press release, the words
"believe," "expects," "intends," "anticipates," "estimates," and analogous
expressions are intended to identify forward-looking statements. Such statements
inherently are subject to a variety of risks and uncertainties that could cause
actual results to differ materially from those projected. Such risks and
uncertainties include, among others, the impact of competitive products,
policies and pricing; product and policy demand and market responses;
development of claims and the effect on loss reserves; the performance of
reinsurance companies under reinsurance contracts with CNA, general economic and
business conditions; changes in financial markets (interest rate, credit,
currency, commodities and stocks); changes in foreign, political, social and
economic conditions; regulatory initiatives and compliance with governmental
regulations; judicial decisions and rulings; the effect on CNA with regards to
third party corrective actions on Year 2000 compliance; changes in rating agency
policies and practices; the results of financing efforts; changes in CNA's
composition of operating segments; the actual closing of contemplated
transactions and agreements and various other matters and risks (many of which
are beyond CNA's control) detailed in CNA's Securities and Exchange Commission
filings. These forward-looking statements speak only as of the date of this
press release. CNA expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statement contained
herein to reflect any change in CNA's expectations with regard thereto or any
change in events, conditions or circumstances on which any statement is based.
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