CNA Financial

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CNA Financial Corporation
Type Public
Traded as NYSECNA
Industry Insurance
Founded 1967 (parent company),
1897 (principal operating company)
Headquarters CNA Center
Chicago, Illinois, U.S.
Key people Thomas F. Motamed, Chairman and CEO
Revenue Increase US$ 9.547 billion (2012)[1]
Operating income Decrease US$ 628 million (2012)[1]
Net income Increase US$ 628 million (2012)[1]
Total assets Increase US$ 58.522 billion (2012)[1]
Total equity Increase US$ 12.314 billion (2012)[1]
Employees 7,500 (Dec 2012)[1]
Website http://www.cna.com

CNA Financial Corporation is a financial corporation based in Chicago, Illinois, United States, and noted for its 600-foot (180 m) tall red headquarters building, CNA Center. Its principal subsidiary, Continental Casualty Company (CCC) was founded in 1897.[2] CNA (the parent company) was incorporated in 1967. The primary business focus of CNA is to provide commercial property and casualty insurance to businesses and professionals. CNA markets its products and services primarily through independent agents and brokers.

CNA itself is 90% owned by a holding company, Loews Corporation.[1] This holding company also has interests in offshore oil and gas drilling rigs, natural gas transmission pipelines, oil and gas exploration, and in hotel operations.

History[edit]

Continental Assurance Company of North America was founded in Detroit in 1897.[2] The purpose of the company was to provide accident and health insurance to railroad industry employees. This company then merged with the Metropolitan Accident Company, changed its name to the Continental Casualty Company, and moved to Chicago.

The National Fire Insurance Company was acquired in 1956, and in 1963 the American Casualty Company was acquired. The first letters of each of the original companies were merged to form the acronym CNA. It was then referred to as the Continental National American Group, now it simply goes by CNA.

In 1999, CNA sold its personal insurance division to Allstate.[3][4] That personal insurance company is now Encompass Insurance Company, a subsidiary of Allstate.[5]

On January 1, 2004, CNA sold its Group Benefits division to The Hartford, based in Hartford, Connecticut.[6] The Hartford merged its new purchase with its own Group Benefits Division. With the sale of this division came the end of CNA's long history as a multi-line insurer.

CNA Foundation[edit]

The CNA Foundation contributes millions of dollars to community development via funding programs and civic involvement. The primary focuses are:

  • Meeting the educational needs of children
  • Assisting children and young adults in developing vocational and occupational skills
  • Providing targeted support for economically disadvantaged children

Two current[when?] beneficiaries of the CNA Foundation are the USO of Illinois and Boys & Girls Clubs of Chicago.

CNA Center gallery[edit]

Restatement[edit]

On February 13, 2003, the company restated its financial data for the past three years, cutting shareholders' equity by $254 million, to comply with federal accounting requirements concerning its life settlement contracts.[7] On March 19, 2003, the company announced a revision to its previously reported fourth quarter 2002 results to reflect an additional $32 million of after-tax impairment losses on equity securities.[8] On May 3, 2005, CNA said it would restate financial results for prior years to correct its accounting for several reinsurance contracts, mainly with a former affiliate, and its equity accounting with this affiliate. For 2004, this would reduce stockholders' equity as of Dec. 31, 2004, by $29 million, or 0.3 percent. [9] On February 16, 2006, CNA restated its annual financial statements from 2001 to 2004 as well as interim statements through the third quarter of 2005 to correct accounting for businesses reported as discontinued operations.[10] On March 8, 2006, the company would make their third results restatements in less than a year, to correct errors in reporting cash flow.[11]


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