CNA Endorses Mutual of Omaha for Transition of MedicalBlock of Business.

CHICAGO--(BUSINESS WIRE)--Nov. 5, 1998--CNA (NYSE:CNA) today announced an agreement for Mutual of Omaha's Group Health Operation to offer replacement coverage on a portion of CNA's health business.

CNA announced in August its intent to exit its Employer Health and Affinity Health businesses,

The agreement with Mutual of Omaha specifically affects CNA's Taft-Hartley block of business, which represents approximately $50 million in annual premium.

CNA Group Operations President and Chief Operating Officer Jae L. Wittlich noted, "CNA is greatly pleased to endorse the transition of our clients to an insurer with the strength and integrity of Mutual of Omaha. This is a very positive development for all concerned."

Randy Horn, Mutual of Omaha's executive vice president, Group Operation, said, "We feel that this is an opportunity for continued growth of our medical block of business, and is a good fit with our market niche strategy.

"While a number of insurers are exiting the group health insurance markets, Mutual of Omaha's strong financial position has allowed us to continue to grow by pursuing blocks of business from other major insurers. This agreement reflects Mutual of Omaha's continued commitment to that market."

Mutual of Omaha has offered group benefits for nearly 50 years. The Group Operation provides a wide range of health products, including HMO, PPO and POS plans, in addition to a full spectrum of other group employee benefit products.

With $1.7 billion in annual premium for 1997, Mutual of Omaha is one of the top group insurance carriers in the United States. The Group Operation is backed by the financial stability of Mutual of Omaha, which has consistently received among the highest ratings from leading industry analysts.

CNA is one of the world's premier insurance organizations. With 1997 revenues of $17.0 billion, CNA ranks among the top 10 U.S. insurance groups and largest providers of commercial insurance and risk management services.

Headquartered in Chicago, CNA is a leading multi-line insurer, serving individuals and businesses with a broad range of insurance products and insurance-related services. CNA products and services are marketed through multiple distribution channels, including independent agents, brokers, general agents and direct sales.

Since 1897, CNA has built on a foundation of financial strength, stability and commitment to customers and business partners. CNA is the registered service mark and trade name of CNA Financial Corporation.