Fitch Ratings has assigned new ratings to various entities of CNA Financial Corporation (CNA), including its “A” insurer financial strength rating for members of The Continental Insurance Company Pool (CIC) and a “BBB” senior debt rating for The Continental Corporation (Continental).
Fitch believes CIC is a core operation for CNA. The rating rationale includes comparable capitalization, aligned strategic focus, common management and similar liability profiles. The 2001 reserve strengthening included a material addition to CIC’s reserves, indicating management is intent on maintaining the operation’s long-term financial strength. Therefore, the “A” insurer financial strength rating for CIC is the same as the “A” insurer financial strength rating for the corporation’s larger domestic property/casualty operation, the Continental Casualty Company Pool (CCC).
Given that Continental’s fixed income obligations are supported by the financial performance at CIC, and that those obligations are small relative to CNA’s overall financial leverage, the senior debt rating at Continental was also placed at the same level as the senior debt at CNA. As such, the “BBB” senior debt rating for Continental aligns with the “BBB” senior debt rating for CNA.
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