$1.25 Billion Bail-Out
“By taking this proactive step, we further augment our solid capital base and are well positioned to both meet the challenges and act on the opportunities likely to emerge in the marketplace.”
鈥擲tephen Lilienthal, chairman and CEO of CNA Financial Corp., noting the $1.25 billion the company will receive from its parent, Loews Corp., to bolster its main insurance unit, Continental Casualty. Lilienthal is stepping down at year’s end, which is earlier than planned, and will be replaced by Thomas F. Motamed, a former Chubb executive.
Unhealthy Finances
“We won’t know until January 2008 renewals what toll the economic crisis has taken on the industry in general. What we do know is that investment income is down dramatically, carrier profitability is being eroded, net underwriting losses are higher and combined ratios are inching up over 100. How long carriers can maintain price cuts without damage to their financial health is anybody’s guess. These are very uncertain times.”
鈥擪en A. Crerar, president of the The Council of Insurance Agents & Brokers, noting his group’s latest Commercial P/C Market Index Survey does not include Q4 figures that show the full impact of the nation’s financial crisis.
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