Financial Data


	Consolidated revenues increased 4 percent or $1.1 billion in 1999 compared to 1998. Property-Liability and Life and Savings premium income grew 4 percent to $21.7 billion, accounting for most of the increase in revenues for the year. Increased investment income, which grew 6 percent, was partially offset by a decline in realized capital gains.

	Consolidated operating income decreased 19 percent during the year due to a decrease in Property-Liability operating income and the impact of restructuring and acquisition related charges taken during the fourth quarter. The restructuring charge, with an after-tax impact of $53 million, was related to the company's announcement to reduce costs by $600 million annually and reinvest in initiatives aimed at aggressively expanding the company's selling and service capabilities. The acquisition charges of $63 million, after-tax, related to the recent acquisitions of CNA personal lines business and American Heritage Life.


	Consolidated net income decreased 17 percent reflecting the decrease in operating income during the year.

	Consolidated investments of the company increased 5 percent or $3.1 billion due primarily to product sales and investments acquired through the purchases of CNA personal lines and American Heritage Life. Investment income increased 6 percent during 1999 reflecting the increase in investment balances partially offset by lower overall portfolio yields. A decline in the average portfolio yield occurs as new and reinvested funds are invested at rates that are lower than the overall portfolio yields. Realized capital gains decreased 4 percent from 1998, due to less favorable market conditions caused by rising interest rates.