Exhibit 99.01


CNA
CNA Plaza
Chicago, IL  60685
Media:
Clark J. Walter
312-822-1454
Analysts:
Donald P. Lofe, Jr.
312-822-3993


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NEWS

                                                        For Immediate Release

CNA Retains Life, Long Term Care and Retirement Services Businesses

CHICAGO,  August 3, 2000 - CNA, the nation's second largest commercial  insurer,
said  today  that  the  process  of  exploring  a  sale  of its  life  insurance
businesses,  announced  on  March 8, has been  completed.  CNA will  retain  the
individual  life,  long term care and retirement  services  businesses.  It will
continue to explore  the  separate  sale of its  viatical  settlements  and life
reinsurance businesses.

Bernard  L.  Hengesbaugh,  Chairman  and Chief  Executive  Officer  of CNA,  the
insurance unit of CNA Financial Corporation (NYSE:CNA),  said, "Having completed
a  comprehensive  evaluation,  we maintained our basic  business  discipline and
decided  not to sell these  businesses  for less than they are worth to CNA.  We
believe  that it is in the best  interests of CNA  shareholders  to retain these
businesses.

"We are formulating a plan to operate CNA Life on a stand-alone basis so that it
may  continue  to provide  superior  value to  customers  and  achieve  its full
business  potential.  I look  forward  to CNA  Life  continuing  its  record  of
achievement through ongoing support from CNA.

"At the same time,  we are  committed  to moving  aggressively  forward with our
stated  strategy to focus CNA on providing  insurance  products and services for
enterprises."

CNA is a leading  insurance  organization  offering a broad  range of  insurance
products and insurance-related  services. Since 1897, CNA has built a foundation
of financial  strength,  stability  and  commitment  to  customers  and business
partners. Visit CNA at www.cna.com. CNA is a registered service mark, trade name
and domain name of CNA Financial Corporation.

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<PAGE>

FORWARD LOOKING STATEMENT

The statements contained in this press release,  which are not historical facts,
are forward-looking  statements.  When included in this press release, the words
"believe,"  "expects,"  "intends,"  "anticipates,"  "estimates,"  and  analogous
expressions are intended to identify forward-looking statements. Such statements
inherently are subject to a variety of risks and uncertainties  that could cause
actual  results  to differ  materially  from  those  projected.  Such  risks and
uncertainties  include,  among  others,  the  impact  of  competitive  products,
policies  and  pricing;   product  and  policy  demand  and  market   responses;
development  of claims  and the  effect on loss  reserves;  the  performance  of
reinsurance companies under reinsurance contracts with CNA, general economic and
business  conditions;  changes in  financial  markets  (interest  rate,  credit,
currency,  commodities and stocks);  changes in foreign,  political,  social and
economic  conditions;  regulatory  initiatives and compliance with  governmental
regulations;  judicial decisions and rulings;  the effect on CNA with regards to
third party corrective actions on Year 2000 compliance; changes in rating agency
policies  and  practices;  the results of  financing  efforts;  changes in CNA's
composition  of  operating   segments;   the  actual  closing  of   contemplated
transactions  and  agreements and various other matters and risks (many of which
are beyond CNA's control)  detailed in CNA's Securities and Exchange  Commission
filings.  These  forward-looking  statements  speak  only as of the date of this
press release.  CNA expressly disclaims any obligation or undertaking to release
publicly  any updates or revisions to any  forward-looking  statement  contained
herein to reflect any change in CNA's  expectations  with regard  thereto or any
change in events, conditions or circumstances on which any statement is based.


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