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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 3, 2003
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LOEWS CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-6541 13-2646102
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(State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
667 Madison Avenue, New York, N.Y. 10021-8087
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (212) 521-2000
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NOT APPLICABLE
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(Former Name or Former Address, if Changed Since Last Report)
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Item 9. Regulation FD Disclosure
On October 3, 2003, CNA Financial Corporation issued a press release
providing information on CNA's withdrawal from the assumed reinsurance
business. A copy of the press release is attached as Exhibit 99.1 to this Form
8-K.
The information in this Report (including the exhibit) is being furnished
and shall not be deemed "filed" for the purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that Section. The information in this Report shall not be
deemed incorporated by reference into any filing under the Securities Act of
1933, as amended, except as expressly set forth by specific reference in such
filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
LOEWS CORPORATION
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Dated: October 3, 2003 By: /s/ Gary W. Garson
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Gary W. Garson,
Senior Vice President,
General Counsel and
Secretary
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Index to Exhibits
Exhibit 99.1 Press release of CNA Financial Corporation dated October 3,
2003.
Page 3 of 3
Exhibit 99.1
CNA
FOR IMMEDIATE RELEASE
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CONTACT:
MEDIA: ANALYSTS:
Charles M. Boesel, 312/822-2592 Dawn M. Jaffray, 312/822-7757
Katrina W. Parker, 312/822-5167
CNA ANNOUNCES EXIT FROM ASSUMED REINSURANCE BUSINESS
AND SALE OF ASSUMED REINSURANCE
RENEWAL RIGHTS TO FOLKSAMERICA
CHICAGO, October 3, 2003 --- Today, CNA Financial Corporation (NYSE: CNA)
announced that it agreed to sell the renewal rights for most of the treaty
business of CNA Re, its assumed reinsurance business unit, to Folksamerica
Reinsurance Company (Folksamerica). Concurrently with the sale, CNA will be
withdrawing from the assumed reinsurance business and will manage the run-off
of its retained liabilities.
"Today's announcement allows CNA to concentrate its property and casualty
capabilities on its primary operations. CNA Re, which expects to write
approximately $600 million of premium in 2003, has done an outstanding job
building a profitable book of reinsurance business," said Stephen W.
Lilienthal, Chairman and Chief Executive Officer of the CNA insurance
companies. "We are pleased that we found a high quality partner to purchase
the renewal rights to this book of business."
Folksamerica, a leading U.S. reinsurance company, ranks among the top four
broker market reinsurers. Folksamerica is a wholly owned subsidiary of White
Mountains Insurance Group, Ltd. of Hamilton, Bermuda. White Mountains is
traded on the New York Stock Exchange under the symbol "WTM."
Under the terms of the transaction, Folksamerica will compensate CNA based
upon the amount of premiums renewed by Folksamerica over the next two contract
renewals. In addition, Folksamerica has indicated its intention to offer
employment to a number of CNA Re's staff.
CNA is the country's fourth largest commercial insurance writer, the 11th
largest property and casualty company and the 51st largest life insurance
organization. CNA's insurance products include standard commercial lines,
specialty lines, surety, marine and other property and casualty coverages;
life and accident insurance; group long term care, disability and life
insurance; and pension products. CNA services include risk management,
information services, underwriting, risk control and claims administration.
For more information, please visit CNA at www.cna.com. CNA is a registered
service mark, trade name and domain name of CNA Financial Corporation.
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FORWARD-LOOKING STATEMENT
The statements contained in this press release, which are not historical
facts, are forward-looking statements. When included in this press release,
the words "believes," "expects," "intends," "anticipates," "estimates," and
analogous expressions are intended to identify forward-looking statements.
Forward-looking statements include expected developments in the insurance
business of CNA (the "Company"), including losses for asbestos, environmental
pollution and mass tort claims; the Company's expectations concerning its
revenues, earnings, expenses and investment activities; expected cost savings
and other results from the Company's expense reduction and restructuring
activities; and the Company's proposed actions in response to trends in its
business.
Such statements, and the financial condition and results of operations of the
Company and the price of the Company's common stock, are subject to a variety
of inherent risks and uncertainties. These risks and uncertainties could cause
actual results to differ materially from those projected. Such risks and
uncertainties include, among others: general economic and business conditions,
including inflationary pressures on medical care costs, construction costs and
other economic sectors that increase the severity of claims; changes in
financial markets such as fluctuations in interest rates, long-term periods of
low interest rates, credit conditions and currency, commodity and stock
prices; the effects of corporate bankruptcies, such as Enron and WorldCom, on
surety bond claims, as well as on capital markets and on the markets for
directors & officers and errors & omissions coverages; changes in foreign or
domestic political, social and economic conditions; regulatory initiatives and
compliance with governmental regulations; judicial decisions and rulings,
including interpretation of policy provisions, decisions regarding coverage
and theories of liability, trends in litigation and the outcome of any
litigation involving the Company; changes in tax laws and regulations;
regulatory limitations and restrictions upon the Company and its insurance
subsidiaries; the impact of competitive products, policies and pricing and the
competitive environment in which the Company operates, including changes in
the Company's books of business; product and policy availability and demand
and market responses, including the level of ability to obtain rate increases
and decline or non-renew underpriced accounts, to achieve premium targets and
profitability and to realize growth and retention estimates; development of
claims and the impact on loss reserves, including changes in claim settlement
practices; the effectiveness of current initiatives by claims management to
reduce loss and expense ratio through more efficacious claims handling
techniques; the performance of reinsurance companies under reinsurance
contracts with the Company; results of financing efforts, including the
availability of bank credit facilities; changes in the Company's composition
of operating segments; weather and other natural physical events, including
the severity and frequency of storms, hail, snowfall and other winter
conditions, as well as of natural disasters such as hurricanes and
earthquakes; man-made disasters, including the possible occurrence of
terrorist attacks and the effect of the absence of applicable terrorism
legislation on coverages; the occurrence of epidemics; exposure to liabilities
due to claims made by insureds and others relating to asbestos remediation and
health-based asbestos impairments, and exposure to liabilities for
environmental pollution and other mass tort claims; whether a national
privately financed trust to replace litigation of asbestos claims with
payments to claimants from the trust will be established or approved through
federal legislation, or, if established and approved, whether it will contain
funding requirements in excess of the Company's established loss reserves or
carried loss reserves; the sufficiency of the Company's loss reserves and the
possibility of future increases in reserves; the level of success in
integrating acquired businesses and operations, and in consolidating existing
ones; the possibility of changes in the Company's ratings by ratings agencies,
including the inability to access certain markets or distribution channels and
the required collateralization of future payment obligations as a result of
such changes, and changes in rating agency policies and practices; the actual
closing of contemplated transactions and agreements; and various other matters
and risks (many of which are beyond the Company's control) detailed in the
Company's Securities and Exchange Commission filings.
These forward-looking statements speak only as of the date of this press
release. The Company expressly disclaims any obligation or undertaking to
release any updates or revisions to any forward-looking statement contained in
this press release to reflect any change in the Company's expectations with
regard thereto or any change in events, conditions or circumstances on which
any statement is based.
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