AM Best Upgrades CNA Financial and Western Surety Group Ratings to Superior

AM Best has upgraded the Financial Strength Rating (FSR) and Long-Term Issuer Credit Ratings (ICRs) of CNA Financial Corporation's property/casualty subsidiaries and Western Surety Group. CNA's FSR was increased from A (Excellent) to A+ (Superior), and its Long-Term ICRs improved from a+ to aa-. Concurrently, CNA Financial Corporation's Long-Term ICR was upgraded to a- from bbb+. This move reflects a revision of the outlook to stable from positive for these ratings. Headquartered in Chicago, CNA's enhanced ratings highlight its very strong balance sheet, consistent positive operating performance over five years, and a solid enterprise risk management framework. CNA's profitability is anchored in commercial casualty underwriting and robust investment metrics, supported by its parent company, Loews Corporation, which holds a 92% stake. The ratings also reflect CNA's strong risk-adjusted capitalization, measured by Best’s Capital Adequacy Ratio (BCAR), along with a diverse insurance portfolio covering commercial and specialty lines. CNA's geographic reach and distribution network, including well-established agency relationships, enhance its operational platform. The company’s underwriting and expense management initiatives have successfully generated internal capital and profitability. Challenges to CNA's ratings include the volatile effects of its discontinued long-term care insurance block, moderate exposure to catastrophe losses, reserve uncertainties, and cyber-related underwriting risks. Western Surety Group's ratings were similarly upgraded to A+ from A with stable outlooks. The group benefits from the strongest balance sheet category of strength, consistent profitable underwriting results, and a stable reserve position. However, its narrow product focus in the competitive surety bond market poses near-term margin pressures. Additionally, AM Best updated ratings on various senior and subordinated debt instruments issued by CNA Financial Corporation, reflecting the corporation’s improved credit standing. One previous rating with a positive outlook was withdrawn. AM Best, a global insurance rating agency, provides these evaluations to guide stakeholders on credit risk and company financial health within the insurance industry.