UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  SCHEDULE 13D


                    Under the Securities Exchange Act of 1934


                             CNA SURETY CORPORATION
-------------------------------------------------------------------------------
                                (Name of Issuer)


                          Common Stock, $.01 par value
 ------------------------------------------------------------------------------
                         (Title of Class of Securities)


                                   12612L1008
 ------------------------------------------------------------------------------
                                 (CUSIP Number)



Jonathan D. Kantor, Esq.      with copies to:            and:
Senior Vice President,        Robert A. Rosenbaum, Esq.  John T. Kramer, Esq.
General Counsel and Secretary Dorsey & Whitney LLP       Dorsey & Whitney LLP
Continental Casualty Company  Pillsbury Center South     Pillsbury Center South
CNA Plaza                     220 South Sixth Street     220 South Sixth Street
Chicago, Illinois 60685       Minneapolis, MN 55402      Minneapolis, MN 55402
(312) 822-1384                (612) 340-5681             (612) 340-8702


-------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)


                                 March 20, 2000
--------------------------------------------------------------------------------
            (Date of Event which Requires Filing of this Statement)


If the filing person has previously  filed a statement on Schedule 13G to report
the  acquisition  that is the subject of this  Schedule  13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box
/X/.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the  Securities  Exchange  Act of
1934 ("Act") or otherwise  subject to the liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).


<PAGE>



1)       Name of Reporting Person:          Continental Casualty Company
         SS or IRS Identification           36-2114545
         Nos. of Above Persons:

2)       Check the Appropriate Box                   (a)           (b)  X
         If A Member of  Group
         (See Instructions)

3)       SEC Use Only

4)       Source of Funds

5)       Check Box If Disclosure of
         Legal Proceedings Is Required
         Pursuant To Items 2(d) Or 2(e)

6)       Citizenship or Place of Organization        Delaware

         Number of                 (7)  Sole Voting Power                  0
         Shares
         Beneficially Owned        (8)  Shared Voting Power       26,283,458 (1)
         by Each Reporting
         Person With:              (9)  Sole Dispositive Power             0

                                   (10) Shared Dispositive Power: 26,283,458 (1)

11)      Aggregate Amount Beneficially                            26,283,458 (1)
         Owned by Each Reporting Person

12)      Check if the aggregate Amount in Row (9)
         Exclude Certain Shares (See Instructions)

13)      Percent of Class Represented
         By Amount in Row 9                                       61.2% (1)

14)      Type of Reporting
         Person (See Instructions)                                IC

     (1) Continental Casualty Company owns 9,754,692 shares directly through its
subsidiary  National Fire  Insurance  Company of Hartford and  7,857,938  shares
indirectly  through  its  subsidiary   American  Casualty  Company  of  Reading,
Pennsylvania.  The  characterization of shared dispositive power with the parent
company is made solely as a consequence of SEC interpretations regarding control
of the  subsidiary.  Continental  Casualty  Company and its direct and  indirect
parent  companies,  each  specifically  disclaims  beneficial  ownership  of the
securities held by its subsidiaries.


<PAGE>



1)       Name of Reporting Person:          CNA Financial Corporation
         SS or IRS Identification           36-6169860
         Nos. of Above Persons:

2)       Check the Appropriate Box                   (a)           (b)  X
         If A Member of  Group
         (See Instructions)

3)       SEC Use Only

4)       Source of Funds

5)       Check Box If Disclosure of
         Legal Proceedings Is Required
         Pursuant To Items 2(d) Or 2(e)

6)       Citizenship or Place of Organization        Delaware

         Number of                 (7)  Sole Voting Power                  0
         Shares
         Beneficially Owned        (8)  Shared Voting Power       27,096,347 (2)
         by Each Reporting
         Person With:              (9)  Sole Dispositive Power             0

                                   (10) Shared Dispositive Power: 27,096,347 (2)

11)      Aggregate Amount Beneficially                            27,096,347 (2)
         Owned by Each Reporting Person

12)      Check if the aggregate Amount in Row (9)
         Exclude Certain Shares (See Instructions)

13)      Percent of Class Represented
         By Amount in Row 9                                       63.1% (2)

14)      Type of Reporting
         Person (See Instructions)                                HC

     (2) CNA  Financial  Corporation  holds  none  of the  shares  directly  and
specifically disclaims beneficial ownership of the securities identified herein.
The  securities  identified  are  held  by  the  following  subsidiaries  in the
following amounts:  Continental  Casualty Company (9,754,692  shares),  National
Fire Insurance Company of Hartford (8,670,828 shares), American Casualty Company
of  Reading  Pennsylvania  (7,857,938  shares),  Continental  Insurance  Company
(270,963 shares), and Firemen's Insurance Company of Newark, New Jersey (541,926
shares).  The  characterization  of shared  dispositive  power  with the  parent
company is made solely as a consequence of SEC interpretations regarding control
of the subsidiaries.


<PAGE>



1)       Name of Reporting Person:          Loews Corporation
         SS or IRS Identification           13-2646102
         Nos. of Above Persons:

2)       Check the Appropriate Box          (a)           (b)  X
         If A Member of  Group
         (See Instructions)

3)       SEC Use Only

4)       Source of Funds                    AF

5)       Check Box If Disclosure of
         Legal Proceedings Is Required
         Pursuant To Items 2(d) Or 2(e)

6)       Citizenship or Place of Organization        Delaware

         Number of                 (7)  Sole Voting Power                  0
         Shares
         Beneficially Owned        (8)  Shared Voting Power       27,096,347 (3)
         by Each Reporting
         Person With:              (9)  Sole Dispositive Power             0

                                   (10) Shared Dispositive Power: 27,096,347 (3)

11)      Aggregate Amount Beneficially                            27,096,347 (3)
         Owned by Each Reporting Person

12)      Check if the aggregate Amount in Row (9)
         Exclude Certain Shares (See Instructions)

13)      Percent of Class Represented
         By Amount in Row 9                                       63.1% (3)

14)      Type of Reporting
         Person (See Instructions)                                HC

     (3) Loews  holds none of the shares  directly  and  specifically  disclaims
beneficial  ownership  of  the  securities  identified  herein.  The  securities
identified  are held by the following  subsidiaries  in the  following  amounts:
Continental Casualty Company (9,754,692 shares), National Fire Insurance Company
of  Hartford   (8,670,828   shares),   American   Casualty  Company  of  Reading
Pennsylvania (7,857,938 shares), Continental Insurance Company (270,963 shares),
and Firemen's  Insurance  Company of Newark,  New Jersey (541,926  shares).  The
characterization  of shared  dispositive  power with the parent  company is made
solely  as a  consequence  of  SEC  interpretations  regarding  control  of  the
subsidiaries.


<PAGE>



This statement is filed by Continental  Casualty  Company  ("Continental"),  CNA
Financial Corporation ("CNAF") and Loews Corporation ("Loews") with the U.S.
Securities and Exchange Commission on March 27, 2000.

Item 1.        Security and Issuer.

     The name of the issuer is CNA Surety Corporation, a company organized under
the laws of Delaware  ("Surety"),  which has its principal  executive offices at
CNA Plaza, Chicago, Illinois 60685.

     The class of equity  securities  to which  this  statement  relates  is the
common stock, $.01 par value (the "Common Stock") of Surety.

Item 2.        Identity and Background.

     (a) - (c)  and  (f)  The  information  set  forth  on  Annex  A  hereto  is
incorporated herein by reference.

     (d) and (e) During the last five years, none of Continental, CNAF or Loews,
nor, to the best of their  knowledge,  any of the individuals  listed on Annex A
has (i) been convicted in a criminal proceeding (excluding traffic violations or
similar  misdemeanors) or (ii) been a party to civil proceeding of a judicial or
administrative  body  of  competent   jurisdiction  and  as  a  result  of  such
proceeding,  was or is subject to a  judgment,  decree,  final  order  enjoining
future violations of, or prohibiting or mandating activities subject to, federal
or state securities laws, or finding any violation of such laws.

Item 3.        Source and Amount of Funds or Other Consideration.

     The  27,096,347  shares of Surety Common Stock to which this filing relates
were acquired by Continental and its affiliates in connection with the formation
of Surety by CNA Financial  Corporation,  Continental's sole stockholder,  which
merged its surety  business  with the  insurance  business  of a third party and
formed Surety.  The shares of Surety Common Stock to be acquired in the proposed
tender offer (described in Item 4 below) will be purchased with working capital.

Item 4.        Purpose of Transaction.

     CNAF has announced that Continental has proposed to Surety that Continental
make a cash  tender  offer for all of the  outstanding  shares of Surety  Common
Stock that it does not currently own at $13.00 per share. Continental intends to
condition  the  tender  offer on  receiving  enough  shares  so that  its  share
ownership reaches at least 90 percent.  If this ownership threshold is achieved,
Continental would then acquire the remaining outstanding shares of Surety Common
Stock not  tendered  to  Continental  through a  statutory  "short-form"  merger
process.  Stockholders  who do not tender their shares of Surety Common Stock to
Continental  during the tender offer would also receive $13.00 per share in cash
for their stock in the  short-form  merger.  Continental  intends to negotiate a
definitive agreement with Surety prior to commencing the tender offer.

Item 5.        Interest in Securities of the Issuer.

     (a)  Continental   owns  9,754,692   shares   directly,   8,670,828  shares
          indirectly  through its subsidiary  National Fire Insurance Company of
          Hartford  and  7,857,938  shares  indirectly  through  its  subsidiary
          American    Casualty   Company   of   Reading,    Pennsylvania.    The
          characterization  of shared  dispositive power with the parent company
          is made  solely  as a  consequence  of SEC  interpretations  regarding
          control of the subsidiary.  Continental  Casualty Company specifically
          disclaims   beneficial   ownership  of  the  securities  held  by  its
          subsidiaries.

               CNAF and Loews hold none of the shares directly and  specifically
          disclaim beneficial ownership of the securities identified herein. The
          securities  identified are held by the following  subsidiaries  in the
          following amounts:  Continental  Casualty Company (9,754,692  shares),
          National  Fire  Insurance  Company  of  Hartford  (8,670,828  shares),
          American Casualty Company of Reading Pennsylvania  (7,857,938 shares),
          Continental   Insurance  Company  (270,963   shares),   and  Firemen's
          Insurance  Company  of  Newark,  New  Jersey  (541,926  shares).   The
          characterization of shared dispositive power with the parent companies
          is made  solely  as a  consequence  of SEC  interpretations  regarding
          control of the subsidiaries.

                              Continental        CNAF              Loews
Amount Beneficially Owned    26,283,458 (1)   27,096,347 (2)    27,096,347 (3)
Percent of Class                61.2%            63.1%             63.1%

          (1) Does not  include  12,500  shares of Surety  Common  Stock held by
          officers  and  directors  of  Continental.   Continental  specifically
          disclaims   beneficial   ownership  of  the  securities  held  by  its
          subsidiaries.

          (2) Does not  include  32,500  shares of Surety  Common  Stock held by
          officers and directors of CNAF. CNAF specifically disclaims beneficial
          ownership of the securities held by its subsidiaries.

          (3) Does not  include  20,000  shares of Surety  Common  Stock held by
          officers  and  directors  of  Loews.  Loews   specifically   disclaims
          beneficial ownership of the securities held by its subsidiaries.

     (b) Number of shares as to which such person has:

                              Continental (1)    CNAF (2)          Loews (3)
Sole power to vote or to
direct the vote                    0               0                  0

Shared power to vote or to
direct vote                   26,283,458       27,096,347         27,096,347

Sole power to dispose or to
direct disposition of              0               0                  0

Shared power to dispose or to
direct disposition            26,283,458       27,096,347         27,096,347

          (1) Does not  include  12,500  shares of Surety  Common  Stock held by
          officers  and  directors  of  Continental.   Continental  specifically
          disclaims   beneficial   ownership  of  the  securities  held  by  its
          subsidiaries.

          (2) Does not  include  32,500  shares of Surety  Common  Stock held by
          officers and directors of CNAF. CNAF specifically disclaims beneficial
          ownership of the securities held by its subsidiaries.

          (3) Does not  include  20,000  shares of Surety  Common  Stock held by
          officers  and  directors  of  Loews.  Loews   specifically   disclaims
          beneficial ownership of the securities held by its subsidiaries.

     (c)  None of Continental,  CNAF or Loews, nor to their best knowledge,  any
          of the individuals listed on Annex A have effected any transactions in
          the Common  Stock of Surety  during the sixty day period  prior to the
          date hereof,  other than the planned tender offer  described  above in
          Item 4.

     (d) Not applicable.

     (e) Not applicable.

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
        Securities of the Issuer.

        Other  than the  ownership  described  above in Item 5 and the  proposed
        tender offer described in Item 4, there are no contracts,  arrangements,
        understandings or relationships with respect to securities of Surety.

Item 7. Material to be Filed as Exhibits.

               Exhibit A            Press Release dated March 20, 2000

               Exhibit B            Joint Filing Agreement

<PAGE>



SIGNATURES

     After  reasonable  inquiry and to the best of my  knowledge  and belief,  I
certify that the information  set forth in this statement is true,  complete and
correct.



                            March 27, 2000



                          CONTINENTAL CASUALTY COMPANY



                            By:     /s/Jonathan D. Kantor
                                    ---------------------
                            Name:   Jonathan D. Kantor
                            Title:  Senior Vice President, General Counsel and
                                    Secretary


                            CNA FINANCIAL CORPORATION


                            By:     /s/Jonathan D. Kantor
                                    ---------------------
                            Name:   Jonathan D. Kantor
                            Title:  Senior Vice President, General Counsel and
                                    Secretary




                            LOEWS CORPORATION



                            By:     /s/Barry Hirsch
                                    ---------------------
                            Name:   Barry Hirsch
                            Title:  Senior Vice President and Secretary


<PAGE>



                                  EXHIBIT INDEX



       Exhibit A                  Press Release dated March 20, 2000

       Exhibit B                  Joint Filing Agreement






<PAGE>



                                     ANNEX A


CONTINENTAL CASUALTY COMPANY

Continental Casualty Company ("Continental"),  is an insurance company organized
under the laws of the State of Illinois.  Continental's principal address is CNA
Plaza, Chicago, Illinois 60685. Continental is a property and casualty insurance
company. Continental is a wholly owned subsidiary of CNA Financial Corporation.


Directors and Executive Officers of Continental Casualty Company

The  following  table  sets  forth  the  name,  citizenship,  present  principal
occupation  or  employment  and  material  occupation,   positions,  offices  or
employment  for the past five years of each  director and  executive  officer of
Continental.  Unless otherwise indicated below, the address of each director and
executive officer is CNA Plaza, Chicago, Illinois, 60685.



Name                         Citizenship       Position with Continental

Bernard L. Hengesbaugh          U.S.           Chairman of the Board and Chief
                                                Executive Officer
Robert V. Deutsch               U.S.           Director, Senior Vice President
                                                and Chief Financial Officer
Carol Dubnicki                  U.S.           Director and Senior Vice
                                                President
Jonathan D. Kantor              U.S.           Director, Senior Vice President,
                                                General Counsel and Secretary
Thomas F. Taylor                U.S.           Director and Executive Vice
                                                President

Business Experience for the past five years for each individual:

Bernard L.  Hengesbaugh - Chairman of the Board and Chief  Executive  Officer of
Continental  since February 1999.  Executive Vice President and Chief  Operating
Officer from February 1998 until February 1999. Prior thereto,  Mr.  Hengesbaugh
was Senior Vice President  since November  1990.  Director of Continental  since
April 1998.

Robert V.  Deutsch  - Senior  Vice  President  and Chief  Financial  Officer  of
Continental  since  1999.  From June 1987 until  August  1999,  Mr.  Deutsch was
Executive Vice President,  Chief Financial Officer,  Chief Actuary and Assistant
Secretary of Executive Risk Inc. Director of Continental since 1999.

Carol  Dubnicki - Senior Vice  President of  Continental  since 1998.  From 1993
until 1998, Ms.  Dubnicki was Vice President of Amoco  Corporation.  Director of
Continental since 1999.

Jonathan D. Kantor - Senior Vice  President,  Secretary  and General  Counsel of
Continental since April 1997. Group Vice President since April 1994. Director of
Continental since April 1997.

Thomas F. Taylor - Executive Vice  President,  Underwriting  Policy Group of the
CNA  Insurance  Companies  since  June  1999.  From  1998 to 1999,  Senior  Vice
President of the CNA Insurance Companies.  From 1992 through 1998, President and
Chief  Operating  Officer  Financial  Insurance  division  of the CNA  Insurance
Companies.

CNA FINANCIAL CORPORATION

CNA Financial Corporation ("CNAF"), is a corporation organized under the laws of
the State of Delaware.  CNAF's principal address is CNA Plaza, Chicago, Illinois
60685. CNA is a holding company which derives substantially all of its operating
income and cash flow from its  subsidiaries,  whose  lines of  business  include
property and casualty insurance; life insurance,  accident and health insurance;
pension products and annuities; and related services.

Directors and Executive Officers of CNA Financial Corporation

The  following  table  sets  forth  the  name,  citizenship,  present  principal
occupation  or  employment  and  material  occupation,   positions,  offices  or
employment  for the past five years of each  director and  executive  officer of
CNAF. Unless otherwise indicated below, the address of each director and officer
is CNA Plaza, Chicago, Illinois, 60685.



Name                         Citizenship     Position with CNAF

Antoinette Cook Bush            U.S.         Director
Dennis H. Chookaszian           U.S.         Director
Ronald L. Gallatin              U.S.         Director
Robert P. Gwinn                 U.S.         Director
Bernard L. Hengesbaugh          U.S.         Director and Chief Executive
                                              Officer of CNA Insurance Companies
Walter F. Mondale               U.S.         Director
Edward J. Noha                  U.S.         Director
Joseph Rosenberg                U.S.         Director
James S. Tisch                  U.S.         Director
Laurence A. Tisch               U.S.         Director and Chief Executive
                                              Officer
Preston R. Tisch                U.S.         Director
Marvin Zonis                    U.S.         Director
Thomas F. Taylor                U.S.         Executive Vice President
Robert V. Deutsch               U.S.         Senior Vice President and Chief
                                              Financial Officer
Jonathan D. Kantor              U.S.         Senior Vice President, General
                                              Counsel and Secretary



<PAGE>


Business Experience for the past five years for each individual:

Antoinette  Cook  Bush  -  Partner,   Skadden,  Arps,  Slate,  Meagher  &  Flom,
Washington,  D.C.  since 1993.  Ms. Bush was Senior Counsel of the United States
Senate  Committee on Commerce,  Science and  Transportation-Majority  Staff from
January 1991 to October 1993. She has been a Director since 1993.

Dennis H.  Chookaszian  - Chairman of the Board and Chief  Executive  Officer of
mPower since  November,  1999.  Prior to that he served as Chairman of the Board
and Chief Executive  Officer of the CNA Insurance  Companies from September 1992
until February 9, 1999. He has been a Director since 1990.

Ronald L. Gallatin - independent  consultant.  Until his  retirement on December
31, 1995, Mr. Gallatin served as a Managing  Director of Lehman Brothers,  Inc.,
where he was a member of the firm's  Operating  Committee  and its  director  of
Corporate   Strategy  and  Product   Development.   He  is  a  director  of  RTI
International  Metals,  Inc. and The First Mexico Income Fund N.V. Mr.  Gallatin
was elected as a Director in February of 2000.

Robert P. Gwinn - Chairman  and Chief  Executive  Officer of Gwinn Oil  Company.
Retired  Chairman  of the Board and Chief  Executive  Officer  of  Encyclopaedia
Britannica.  He is a director of Alberto Culver Company. Mr. Gwinn has served as
a Director since 1967.

Bernard L.  Hengesbaugh - Chairman of the Board and Chief  Executive  Officer of
the CNA Insurance  Companies  since February 1999. Mr.  Hengesbaugh  was elected
Executive Vice President and Chief Operating Officer in February 1998. From 1990
until 1998, he was Senior Vice President of the CNA Insurance  Companies.  Prior
thereto,  Mr.  Hengesbaugh  had  been a Vice  President  of  the  CNA  Insurance
Companies  since 1980. Mr.  Hengesbaugh was elected as a Director in February of
1999.

Walter F. Mondale - Partner in the  Minneapolis,  Minnesota law firm of Dorsey &
Whitney since December  1996. Mr. Mondale was United States  Ambassador to Japan
from  September  1993  until  December  1996.  From  September  1987  until  his
appointment  as Ambassador,  Mr. Mondale was a partner at Dorsey & Whitney.  Mr.
Mondale was Vice President of the United States from 1977 until 1981. He was the
Democratic  nominee for President of the United States in 1984. He serves on the
boards of various  BlackRock  Trusts,  BBT Subsidiary Inc., BNN Subsidiary Inc.,
BBT Subsidiary Fund, Dain Rauscher  Corporation,  United Health Group Corp., NWA
Inc., and Northwest Airlines,  Inc. He served as a Director from 1985 until 1993
and was reelected Director in February 1997.

Edward J. Noha - Chairman of the Board of CNAF since  September  1992.  Prior to
that time and since  February 1975, Mr. Noha was Chairman of the Board and Chief
Executive Officer of the CNA Insurance  Companies.  Mr. Noha serves on the board
of Loews. Mr. Noha has served as a Director since 1975.

Joseph  Rosenberg - Chief  Investment  Strategist of Loews since 1995.  Prior to
that, he was Chief Investment  Officer of Loews since August 1973. He has been a
Director since August 1995.

James S. Tisch - President  and Chief  Executive  Officer of Loews since January
1999. Prior to that, he was President and Chief Operating  Officer of Loews from
October 18, 1994 to January 1999. He is a Director of Loews, Vail Resorts,  Inc.
and  Chairman  of the Board and Chief  Executive  Officer  of  Diamond  Offshore
Drilling, Inc. Mr. Tisch has served as a Director since 1985.

Laurence A. Tisch - Co-Chairman  of the Board of Loews since January 1999. He is
the  Chief  Executive  Officer  of CNAF.  He is a  director  of  Automatic  Data
Processing,  Inc.  and Bulova  Corporation.  Prior to 1999,  Mr.  Tisch had been
Co-Chairman of the Board and Co-Chief  Executive Officer of Loews since 1994. In
addition,  he served as Chairman  of the Board,  President  and Chief  Executive
Officer of CBS, Inc.  from January 1987 until  November  24,1995.  Mr. Tisch has
served as a Director since 1974.

Preston R. Tisch - Co-Chairman  of the Board of Loews since January 1999.  Prior
to 1999, he was Co-Chairman of the Board and Co-Chief Executive Officer of Loews
since 1994.  Mr. Tisch served as  Postmaster  General of the United  States from
August 15, 1986 to February 26, 1988.  Prior  thereto he had served as President
and Chief Operating Officer of Loews. He is a director of Hasbro,  Inc. and Rite
Aid  Corporation.  Mr.  Tisch served as a Director of CNAF from 1974 to 1986 and
was reelected a Director in May of 1988.

Marvin  Zonis - Professor  of  International  Political  Economy at the Graduate
School of Business of the University of Chicago since 1989.  Principal of Marvin
Zonis & Associates, Inc. He has been a Director since 1993.

Thomas F. Taylor - Executive Vice  President,  Underwriting  Policy Group of the
CNA  Insurance  Companies  since  June  1999.  From  1998 to 1999,  Senior  Vice
President of the CNA Insurance Companies.  From 1992 through 1998, President and
Chief  Operating  Officer  Financial  Insurance  division  of the CNA  Insurance
Companies.

Robert V. Deutsch - Senior Vice  President and Chief  Financial  Officer of CNAF
and the CNA Insurance  Companies  since 1999.  From June 1987 until August 1999,
Mr. Deutsch was Executive Vice President, Chief Financial Officer, Chief Actuary
and Assistant Secretary of Executive Risk Inc.

Jonathan D. Kantor - Senior Vice  President,  Secretary  and General  Counsel of
CNAF and the CNA Insurance Companies since April 1997. Prior thereto, Group Vice
President of Continental  since April 1994.  Director of Continental since April
1997.

LOEWS CORPORATION

Loews Corporation  ("Loews"),  is a corporation  organized under the laws of the
State of Delaware.  Loews  Corporation has its principal  offices at 667 Madison
Avenue,  New York, New York  10021-8087.  Loews is a holding company and derives
all of its operating income and cash flow from its subsidiaries.  In addition to
CNAF,  Loews'  subsidiaries are engaged in the following lines of business;  the
production and sale of cigarettes (Lorillard,  Inc., a wholly owned subsidiary);
the  operation  of hotels  (Loews  Hotels  Holding  Corporation,  a wholly owned
subsidiary);  the  operation  of offshore  oil and gas  drilling  rigs  (Diamond
Offshore,  a 50.3% owned  subsidiary);  and the distribution and sale of watches
and clocks (Bulova Corporation, a 97% owned subsidiary).

Directors and Executive Officers of  Loews Corporation

The  following  table  sets  forth  the  name,  citizenship,  present  principal
occupation  or  employment  and  material  occupation,   positions,  offices  or
employment  for the past five years of each  director and  executive  officer of
Loew's  Corporation.  Unless  otherwise  indicated  below,  the  address of each
director  and  officer is located at 667  Madison  Avenue,  New York,  New York,
10021.


Name                       Citizenship    Position with Loews

Charles B. Benenson          U.S.         Director
John Brademas                U.S.         Director
Dennis H. Chookaszian        U.S.         Director
Paul J. Fribourg             U.S.         Director
Bernard Myerson              U.S.         Director
Edward J. Noha               U.S.         Director
Gloria R. Scott              U.S.         Director
Fred Wilpon                  U.S.         Director
Andrew H. Tisch              U.S.         Director, Office of the President and
                                           Chairman of the Executive Committee
James S. Tisch               U.S.         Director, Office of the President,
                                           President and Chief Executive Officer
Jonathan M. Tisch            U.S.         Director, Office of the President
Laurence A. Tisch            U.S.         Director, Co-Chairman of the Board
Preston R. Tisch             U.S.         Director, Co-Chairman of the Board
Gary W. Garson               U.S.         Vice President and Assistant Secretary
Barry Hirsch                 U.S.         Senior Vice President and Secretary
Herbert C. Hofmann           U.S.         Senior Vice President
Peter W. Keegan              U.S.         Senior Vice President and Chief
                                           Financial Officer
John J. Kenny                U.S.         Treasurer
Guy A. Kwan                  U.S.         Controller
Alan Momeyer                 U.S.         Vice President - Human Resources
Stuart B. Opotowsky          U.S.         Vice President - Tax
Richard E. Piluso            U.S.         Vice President - Internal Audit
Arthur L. Rebell             U.S.         Senior Vice President and Chief
                                           Investment Officer

Business Experience for the past five years for each individual:

Charles B. Benenson - Officer and Director, Benenson Realty Company (real estate
investments). Mr. Benenson has been a Director since 1960.

John Brademas - President  Emeritus since 1992 and, prior thereto,  President of
New York  University.  Mr.  Brademas is also a director of Kos  Pharmaceuticals,
Inc. Mr. Brademas has been a Director since1982.

Dennis H.  Chookaszian  - Chairman of the Board and Chief  Executive  Officer of
mPower since November 1999. He has also been Chairman of the Executive Committee
of CNAF since  February 1999.  Prior thereto,  he had been Chairman of the Board
and Chief Executive  Officer of CNA Insurance  Companies.  Mr.  Chookaszian is a
director of CNAF. He has been a Director since 1995.

Paul J.  Fribourg  -  Chairman  of the Board of  Directors  and Chief  Executive
Officer of ContiGroup  since 1997. Prior thereto he had been President and Chief
Operating Officer of Continental Grain Company.  Mr. Fribourg is also a director
of  ContiFinancial  Corporation  and Wyndham  International,  Inc. He has been a
Director since 1997.

Bernard Myerson - Retired, formerly Chairman Emeritus of Sony Theatre Management
Corporation. Mr. Myerson has been a Director since 1963.

Edward J. Noha - Chairman of the Board of CNAF since 1992.  Prior  thereto,  Mr.
Noha  had  been  Chairman  and  Chief  Executive  Officer  of the CNA  Insurance
Companies. Mr. Noha has been a Director since 1975.

Gloria R. Scott - President,  Bennett College,  Greensboro,  North Carolina. Dr.
Scott has been a Director since 1990.

Fred Wilpon - Chairman  of the Board of Sterling  Equities,  Inc.  (real  estate
investments)  and President,  Chief  Executive  Officer and co-owner of Sterling
Doubleday Enterprises,  L.P. (New York Mets baseball team). Mr. Wilpon is also a
director of  Pathogenesis  Corporation and Bear Stearns  Companies,  Inc. He has
been a Director since February 2000.

Andrew H. Tisch - Chairman of the  Executive  Committee and member of the Office
of the President of Loews since January 1999. Prior thereto he had been Chairman
of the Management  Committee of Loews. Mr. Tisch served as Chairman of the Board
and Chief  Executive  Officer of Lorillard,  Inc., a wholly owned  subsidiary of
Loews,  from  September  1989 to May 1995. Mr. Tisch is Chairman of the Board of
Bulova Corporation  ("Bulova"),  a 97% owned subsidiary of Loews, and a director
of Zale Corporation,  Canary Wharf PLC and Integrated  Graphics,  Inc. Mr. Tisch
has been a Director since 1985.

James S.  Tisch -  President  and Chief  Executive  Officer  and a member of the
Office of the President of Loews since  January 1999.  Prior thereto he had been
President and Chief Operating Officer of Loews since 1994. He is also a director
of CNAF and Vail  Resorts,  Inc and  Chairman  of the Board and Chief  Executive
Officer of Diamond  Offshore  Drilling Inc. Mr. Tisch has been a Director  since
1986.

Jonathan M. Tisch - President and Chief Executive  Officer of Loews Hotels and a
member of the Office of the  President  of Loews.  He has been a Director  since
1986.

Laurence A. Tisch - Co-Chairman of the Board of Loews. Prior to January 1999 Mr.
Tisch had also been  Co-Chief  Executive  Officer of Loews.  Mr.  Tisch is Chief
Executive  Officer of CNAF and a director of CNAF and Bulova.  In  addition,  he
served as Chairman,  President and Chief Executive Officer and a director of CBS
Inc.  ("CBS")  until  November 24, 1995.  Mr. Tisch also serves as a director of
Automatic Data Processing, Inc. He has been a Director since 1959.

Preston R. Tisch - Co-Chairman of the Board of Loews. Prior to January 1999, Mr.
Tisch had also been  Co-Chief  Executive  Officer of Loews.  Mr. Tisch served as
Postmaster  General of the United  States from  August 15, 1986 to February  26,
1988.  Prior thereto he had served as President and Chief  Operating  Officer of
Loews since 1969 and as a Director  since 1960. He was  re-elected a director of
the Company in March 1988. He is a director of Bulova,  CNAF,  Hasbro,  Inc. and
Rite Aid Corporation.

Gary W. Garson - Vice President and Assistant Secretary of Loews.

Barry Hirsch - Senior Vice President and Secretary of Loews.

Herbert C. Hofmann - Senior Vice President of Loews.

Peter W. Keegan - Senior Vice  President  and Chief  Financial  Officer of Loews
since 1996. Mr. Keegan was Senior Vice President of Finance at CBS Inc. prior to
joining Loews.

John J. Kenny - Treasurer of Loews.

Guy A. Kwan - Controller of Loews.

Alan Momeyer - Vice President-Human Resources of Loews.

Stuart B. Opotowsky - Vice President-Tax of Loews.

Richard E. Piluso - Vice President-Internal Audit of Loews.

Arthur L. Rebell - Senior Vice President and Chief  Investment  Officer of Loews
since  June  1998.  Prior  to  joining  Loews,  during  1997  and 1998 he was an
associate  professor  of Mergers  and  Acquisitions  at New York  University,  a
Managing  Director of Highview  Capital  and a Partner in  Strategic  Investors.
Prior to that Mr. Rebell was a Managing Director of Schroders.



<PAGE>



                                                                       Exhibit A

CNA            MEDIA:
                              CNA Plaza           Clark Walter
                              Chicago, IL 60685   312-822-1454

                              ANALYSTS:
                              Donald P. Lofe, Jr.
                              312-822-3993

CNA
FOR ALL THE COMMITMENTS YOU MAKE

NEWS

                    CNA ANNOUNCES PROPOSED CASH TENDER OFFER
                          FOR ALL SHARES OF CNA SURETY

CHICAGO,  IL., March 20, 2000 - CNA Financial  Corporation (NYSE: CNA) announced
today that Continental  Casualty Company (CCC), a wholly owned  subsidiary,  has
proposed to CNA Surety Corporation (NYSE: SUR) that CCC make a cash tender offer
at $13.00 per share for all shares of CNA Surety  common stock not already owned
by CCC and its affiliates. This move is consistent with CNA's recently announced
intention to sharpen its strategic focus on serving  businesses.  The $13.00 per
share price  represents a 17.4% premium over CNA Surety's  average closing price
for the past 30 trading days of $11.07 per share.

CCC and its affiliates currently own approximately 62 percent of the outstanding
shares of CNA Surety  common  stock.  CCC intends to condition  the tender offer
upon receiving enough shares so that its ownership  reaches at least 90 percent.
If this  ownership  threshold is achieved,  CCC would then acquire the remaining
outstanding  shares of CNA Surety  common  stock not  tendered  to CCC through a
statutory  "short-form"  merger  process.  Stockholders  who do not tender their
shares to CCC during the tender  offer  would also  receive  $13.00 per share in
cash for their stock in the short-form merger.

CCC  intends to  negotiate  a  definitive  agreement  with CNA  Surety  prior to
commencing the offer.

CNA Financial  Corporation is a holding company whose primary  subsidiaries  are
property-casualty and life insurance companies. Collectively, these subsidiaries
are CNA, one of the largest insurance organizations in the United States.

OTHER IMPORTANT INFORMATION:

The tender offer described in this  announcement  for the outstanding  shares of
CNA Surety  common  stock has not yet  commenced.  As soon as the  tender  offer
commences,  we will  file a  tender  offer  statement  with the  Securities  and
Exchange Commission.  You should read the tender offer statement when it becomes
available because it will contain important  information about the tender offer.
You can obtain the tender offer  statement  and other  documents  that are filed
with the  Securities  and Exchange  Commission  for free on the  Securities  and
Exchange  Commission's web site at  http://www.sec.gov.  If you write us or call
us, we will send you the following documents for free when they are available:

 - tender offer statement  (except for exhibits) - offer to purchase - letter of
 transmittal - notice of guaranteed delivery

You can call us at (312) 822-6312 or write to us at:

         CNA Financial Corporation
         c/o Corporate Secretary
         333 South Wabash
         Chicago, IL 60690

                            FORWARD LOOKING STATEMENT

The following constitutes a "Safe Harbor" statement under the Private Securities
Litigation  Reform Act of 1995:  This  press  release  contains  forward-looking
statements that involve a number of risks and  uncertainties.  Important factors
that could cause actual  results to differ  materially  from those  indicated by
such forward-looking statements are set forth under the heading "Forward-Looking
Statements"  included in the  Management's  Discussion  and Analysis of Reported
Operations and Liquidity set forth in CNA Financial  Corporation's Annual Report
to Stockholders for the year ended December 31, 1998,  incorporated by reference
in Item 7 of that  Corporation's  Annual  Report on Form 10-K for the year ended
December  31,  1998.  These  include  risks and  uncertainties  relating to, for
example,  a material adverse change to CNA Surety's  business or prospects,  the
effect of economic conditions, and rating agency policies and practices.


<PAGE>



                                                                       Exhibit B


              Agreement Relating to the Filing of Joint Statements

     Each of the undersigned  hereby agrees that the Schedule 13D filed herewith
is filed  jointly,  pursuant to Rule 13d-1(k) of the Securities and Exchange Act
of 1934, as amended, on behalf of each of the undersigned.



                              March 27, 2000



                              CONTINENTAL CASUALTY COMPANY


                              By:    /s/ Jonathan D. Kantor
                                     ----------------------
                              Name:  Jonathan D. Kantor
                              Title: Senior Vice President, General Counsel and
                                     Secretary


                              CNA FINANCIAL CORPORATION


                              By:    /s/ Jonathan D. Kantor
                                     ----------------------
                              Name:  Jonathan D. Kantor
                              Title: Senior Vice President, General Counsel and
                                     Secretary


                              LOEWS CORPORATION

                              By:    /s/ Barry Hirsch
                                     ----------------------
                              Name:  Barry Hirsch
                              Title: Senior Vice President and Secretary


     (1) Continental Casualty Company owns 9,754,692 shares directly,  8,670,828
shares  indirectly  through its subsidiary  National Fire  Insurance  Company of
Hartford  and  7,857,938  shares  indirectly  through  its  subsidiary  American
Casualty  Company  of  Reading,  Pennsylvania.  The  characterization  of shared
dispositive power with the parent company is made solely as a consequence of SEC
interpretations  regarding  control  of  the  subsidiary.  Continental  Casualty
Company  and  its  direct  and  indirect  parent  companies,  each  specifically
disclaims beneficial ownership of the securities held by its subsidiaries.

     (2) CNA  Financial  Corporation  holds  none  of the  shares  directly  and
specifically disclaims beneficial ownership of the securities identified herein.
The  securities  identified  are  held  by  the  following  subsidiaries  in the
following amounts:  Continental  Casualty Company (9,754,692  shares),  National
Fire Insurance Company of Hartford (8,670,828 shares), American Casualty Company
of  Reading  Pennsylvania  (7,857,938  shares),  Continental  Insurance  Company
(270,963 shares), and Firemen's Insurance Company of Newark, New Jersey (541,926
shares).  The  characterization  of shared  dispositive  power  with the  parent
company is made solely as a consequence of SEC interpretations regarding control
of the subsidiaries.

     (3) Loews  holds none of the shares  directly  and  specifically  disclaims
beneficial  ownership  of  the  securities  identified  herein.  The  securities
identified  are held by the following  subsidiaries  in the  following  amounts:
Continental Casualty Company (9,754,692 shares), National Fire Insurance Company
of  Hartford   (8,670,828   shares),   American   Casualty  Company  of  Reading
Pennsylvania (7,857,938 shares), Continental Insurance Company (270,963 shares),
and Firemen's  Insurance  Company of Newark,  New Jersey (541,926  shares).  The
characterization  of shared  dispositive  power with the parent  company is made
solely  as a  consequence  of  SEC  interpretations  regarding  control  of  the
subsidiaries.