OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has placed under review with developing
implications the financial strength rating of A- (Excellent) and the
issuer credit rating of ďa-Ē of Continental Assurance Company(CAC).
CAC is the life/health subsidiary of CNA Financial Corporation
(CNA). The above named companies are headquartered in Chicago, IL.
The rating actions follow the recent announced definitive agreement by
CNA to sell all its common shares of CAC to a subsidiary of Wilton Re
Holdings Limited (Wilton Re) (Hamilton, Bermuda). In addition to the
sale of CAC, certain affiliates of CNA and Wilton Re have agreed to
enter into a 100% reinsurance agreement and related transaction
agreement pursuant to which Wilton Re will reinsure all of the run-off
structured settlement annuities reinsured by a Bermuda-based subsidiary
of CNA. The transactions, when completed, will reduce CNAís non-core
life and group gross GAAP insurance reserves by $3.4 billion, or 25%,
and dispose of the vast majority of CNAís payout annuity business.
The under review status reflects A.M. Bestís view that, although CAC is
expected to benefit from being a part of an organization focused on the
life and annuity market segments and will have access to additional
financial and managerial resources, A.M. Best will assess the
transactionís likely effect on CACís prospective operating performance
and risk-adjusted capitalization. The ratings will remain under review
pending the completion of the transaction, during which time A.M. Best
will conduct discussions with Wilton Reís management regarding CACís
strategic fit within the organization.
The methodology used in determining these ratings is Bestís Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Bestís rating process and contains the different rating criteria
employed in the rating process. Bestís Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc.ALL RIGHTS
A.M. Best Co.
Joan Sullivan, 908- 439-2200, ext. 5144
Pargeans, 908-439-2200, ext. 5359
Assistant Vice President
Morrow, 908-439-2200, ext. 5378
Senior Manager, Public
Peavy, 908-439-2200, ext. 5644
Assistant Vice President,
Source: A.M. Best Co.