CNA Financial Corp. said it has extended its employment contract with Tom Motamed, chairman and chief executive officer, through 2016. He assumed his current position in 2009.
‘Over the past two years, we have built a first-class team and we continue to recruit significant talent as we build the company for the long term,’ said Motamed. ‘We are encouraged by positive feedback from producers and insureds on our efforts to make CNA a more producer-friendly company with strong underwriting and service capabilities.”
Since his arrival at CNA, Motamed said he has worked with CNA producers and employees to increase top and bottom line performance. The company has developed its expertise in construction and healthcare and has also been focusing on other segments including manufacturing, financial institutions, professional services, technology, small business, retail, commercial real estate, education and wholesale distribution.
The company has extended its geographic reach throughout the U.S., Canada and Europe. CNA has opened four new branch offices, with a fifth scheduled to open this year. The insurer has been adding additional employees and resources, and increasing authority at the point of sale.
CNA’s second quarter 2011 results saw premium growth in its specialty and commercial segments, improving rate trends, strong submission activity and new business. This was the first quarter in which CNA had positive growth in both specialty and commercial since fourth quarter 2006.
CNA’s book value per common share has increased under Motamed from $20.92 to $43.09 at the end of this year’s second quarter, a 106 percent improvement. During last year’s third quarter, CNA virtually eliminated its exposures to legacy asbestos and pollution liabilities through a loss portfolio transaction with National Indemnity Co., a subsidiary of Berkshire Hathaway.
In other actions since Motamed’s arrival, CNA sold its Argentine workers’ compensation operation, and reached an agreement to sell its interest in First Insurance Company of Hawaii, scheduled to close in fourth quarter 2011. These transactions will enable the company to redeploy capital to core businesses. Additionally, CNA purchased the shares of CNA Surety that it did not already own, increasing its scale in this profitable business. The company also resumed its quarterly common stock dividend.
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