Best affirms ratings of CNA, property/casualty units

CHICAGO—A.M. Best Co. Inc. on Wednesday affirmed the A (excellent) financial strength rating of CNA Insurance Cos. and its property/casualty subsidiaries.

Best also affirmed the “a” issuer credit ratings of CNA Insurance and the property/casualty units.

All the ratings have a stable outlook, the Oldwick, N.J.-based rating agency said.

The ratings reflect CNA’s “substantially improved risk-adjusted capitalization, continued solid operating performance, adequate liquidity and good business position as a leading writer within the commercial lines segment of the U.S. property/casualty industry,” Best said in a statement.

“In addition, the ratings recognize CNA’s underwriting and other operating initiatives completed and currently under way to improve operating performance; vastly improved technological infrastructure, which has enhanced data collection and segment reporting tools; and continued focus on enterprise risk management,” Best said.

Best also noted that Chicago-based parent company CNA Financial Corp. transferred about $2.6 billion of its net legacy asbestos environmental liabilities to Berkshire Hathaway Inc.’s National Indemnity Co. in the third quarter of last year, recognizing an after-tax generally accepted accounting principles charge of $365 million as part of the transaction.

The rating agency said the positive factors were offset partially by several negative ones, including the “current highly competitive environment in its property/casualty markets, which will likely pressure underwriting margins over the near term.”