CBS underwriter stock upgraded

Morgan Stanley has raised its investment rating on CNA Financial Corp. to "overweight" from "equal weight," citing expectations for improving returns, among other factors. Analyst Bill Wilt set a price target of $35, noting that, "There are presently no other commercial insurance companies rated Overweight by us. In short ... we think CNA can produce gradually improving returns in the face of increasingly stiff industry headwinds."

Wilt's report added that CNA's increased earnings "compared to an average decrease of 5‑10% across many other commercial insurers, separates this company from many others we follow" and that "CNA has among the lowest levels of premium leverage across the companies we follow. In a softening rate environment, this acts as a buffer against declining margins. Morgan Stanley also said it viewed CNA favorably, relative to its peers, in the areas of tort reform and returns on equity.

CNA's latest financial report showed net income for the fourth quarter of 2004 of $305 million as compared to $174 million for the same period in 2003.

The analyst upgrade came as good news to Chiropractic Benefit Services RPG, who entered into an underwriting agreement with CNA in 2003. "This is one more piece of evidence that CNA is among the most secure insurance companies in the world," stated Timothy Feuling, CBS‑RPG president. "In these uncertain times, it's essential that doctors choose a malpractice program that not only offers them excellent coverage, but is financially stable."

CNA is the one of the country's largest commercial insurance writers and largest property and casualty company. In business for more than 100 years, CNA has over $60 billion in assets and an AM Best  "A" rating for financial strength.

Fueling added that financial stability was only one reason CBS‑RPG chose it as its underwriter. The other major reason was CNA's corporate culture and level of service. According to CNA,  "every business decision is driven by a set of core values ‑‑ integrity, diversity, financial focus, customer focus, professionalism and teamwork. Our commitment to these values differentiates us from other companies, supports long‑term relationships with customers and distributors, and enables us to attract and retain a team of outstanding insurance professionals."

"Since service, integrity and dedications are all hallmarks of CBS‑RPG, we deliberately sought out an underwriter who shared our values," Feuling said. "That's why we've built a reputation for setting new standards for customer service in the risk management field."

For more information on CBS‑RPG, or to request a free quote, call 800‑883‑0412 or e‑mail Timothy Feuling at feuling@cbsmalpractice.com.