CNA Financial Corp. To Acquire Hardy Underwriting Bermuda Limited

CNA Financial Corp. and Hardy Underwriting Bermuda Limited announced that they have agreed to terms on a cash acquisition by CNA of all common shares of Hardy. The acquisition is to be implemented by way of a merger under the Bermuda Companies Act. CNA will pay approximately USD227 million for the Hardy common shares. The proposed transaction has been approved by the board of directors of both companies. Subject to the approval of Hardy shareholders, regulatory approvals and other conditions set forth in the agreement, the acquisition is expected to be completed during the second quarter of 2012. Under the terms of the agreement, Hardy shareholders will be entitled to receive 280 pence (USD4.44 ) for each common share. The acquisition price values Hardy's entire issued and to be issued share capital at approximately GBP143 million (USD227 million ). Aon Benfield Securities is acting as financial advisor to CNA in connection with the transaction. Rothschild and Peel Hunt are acting as financial advisors to Hardy in connection with the transaction.