FORM 13F COVER PAGE
Report for the Calendar Year or Quarter Ended: December 31, 2002
Check here if Amendment [ ]; Amendment Number:
This Amendment (Check only one.): [ ] is a restatement.
[ ] adds new holdings entries.
Institutional Investment Manager Filing this Report:
Name: CNA Financial Corporation
Address: CNA Plaza
Chicago, IL 60685
13F File Number: 28-346
The institutional investment manager filing this report and the
person by whom it is signed hereby represent that the person
signing the report is authorized to submit it, that all
information contained herein is true, correct, and complete, and
that it is understood that all required items, statements,
schedules, lists, and tables, are considered integral parts of
this form.
Person Signing this Report on Behalf of Reporting Manager:
Name: Karla L. Kambic
Title: Vice President and Associate General Counsel
Phone: (312) 822 1337
Signature, Place, and Date of Signing:
February 12,2003
Chicago, Illinois,
I AM SIGNING THIS REPORT AS REQUIRED BY THE SECURITIES EXCHANGE
ACT OF 1934
Report Type (Check only one.):
[ X ] 13F HOLDINGS REPORT.
[ ] 13F NOTICE.
[ ] 13F COMBINATION REPORT.
List of Other Managers Reporting for this Manager:
Assets reported herein are described as having shared
investment discretion among Loews Corporation, CNA
Financial Corporation,The Continental Corporation,
Continental Casualty Company and Continental Assurance
Company. Each of the foregoing entities specifically disclaims
ownership of any securities in this report which are not
beneficially owned by that entity and states that such
assets are solely under the control of its board of directors.
The characterization of shared investment discretion with parent
holding companies is made solely as a consequence of SEC
interpretations regarding control of the subsidiary through
share ownership. Loews Corporation owns approximately 90%
of the outstanding shares of CNA Financial Corporation;
CNA Financial Corporation owns 100% of the outstanding
shares of Continental Casualty Company and The Continental
Corporation; and Continental Casualty Company owns 100%
of the outstanding shares of Continental Assurance Company.
Loews Corporation will report separately on securities over which
it has investment discretion which are not part of this report.
FORM 13F SUMMARY PAGE
Report Summary:
Number of Other Included Managers: 4
Form 13F Information Table Entry Total: 299
Form 13F Information Table Value Total: 1,194,754.413 (in thousands)
List of Other Included Managers:
No. 13F File Number Name
1 28-172 The Continental Corporation
2 28-217 Loews Corporation
3 28-386 Continental Assurance Company
4 28-387 Continental Casualty Company
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
ACUITY BRANDS INC COM 00508Y102 365 26,950 SH DEFINED 2 26,950
ACXIOM CORP COM 005125109 905 59,100 SH DEFINED 2,3 59,100
ACXIOM CORP NOTE 005125AB5 1,554 1,350,000 PRN DEFINED 2,3 73,964
AETNA INC COM 00817Y108 1,187 28,875 SH DEFINED 2 28,875
AFFILIATED COMPUTER SVCS CLA 008190100 2,247 42,400 SH DEFINED 2,3 42,400
AFFILIATED COMPUTER SVCS NOTE 008190AF7 3,315 2,400,000 PRN DEFINED 2,3 55,256
AGERE SYSTEMS INC CLA 00845V100 316 219,200 SH DEFINED 2 219,200
AGILENT TECHNOLOGIES INC COM 00846U101 3,186 174,100 SH DEFINED 2,3,4 174,100
AGILENT TECHNOLOGIES INC DBCV 00846UAB7 4,794 5,000,000 PRN DEFINED 2,3,4 155,183
AIR PRODUCTS & CHEMICAL COM 009158106 299 7,000 SH DEFINED 2 7,000
ALCOA INC COM 013817101 2,642 116,000 SH DEFINED 2,3 116,000
ALLEGHENY ENERGY INC COM 017361106 1,189 157,300 SH DEFINED 2 157,300
ALLSTATE CORPORATION COM 020002101 762 20,600 SH DEFINED 2 20,600
AMBAC FINANCIAL GROUP COM 023139108 2,812 50,000 SH DEFINED 2,4 50,000
AMERADA HESS COM 023551104 4,955 90,000 SH DEFINED 2,4 90,000
AMERICAN EXPRESS COM 025816109 2,298 65,000 SH DEFINED 2,3 65,000
AMERICAN INTL GROUP COM 026874107 1,880 32,500 SH DEFINED 2,3 32,500
AMERICAN INTL GROUP DBCV 026874AP2 1,289 2,000,000 PRN DEFINED 2,4 12,125
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
AMERICAN NATIONAL INS COM 028591105 410 5,000 SH DEFINED 2 5,000
AMERICAN PHYSICIANS CAP COM 028884104 530 28,200 SH DEFINED 2 28,200
AMERIPATH INC COM 03071D109 484 22,500 SH DEFINED 2 22,500
AMERISOURCE HEALTH CORP NOTE 03071PAD4 3,288 2,560,000 PRN DEFINED 2,3 48,331
AMERISOURCEBERGEN CORP COM 03073E105 2,240 41,110 SH DEFINED 2,3 41,110
AMGEN INC COM 031162100 6,142 124,100 SH DEFINED 2,3,4 124,100
ANADARKO PETROLEUM CORP COM 032511107 3,593 75,000 SH DEFINED 2,4 75,000
ANHEUSER BUSCH CO COM 035229103 1,936 40,000 SH DEFINED 2,3 40,000
ANIXTER INTERNATIONAL INC COM 035290105 325 13,975 SH DEFINED 2 13,975
AON CORP COM 037389103 8,449 447,300 SH DEFINED 2,4 447,300
APACHE CORP COM 037411105 2,308 40,500 SH DEFINED 2,3 40,500
APPLIED MATERIALS INC. COM 038222105 977 75,000 SH DEFINED 2,3 75,000
ARDEN REALTY GROUP INC COM 039793104 784 35,400 SH DEFINED 2,4 35,400
ARTESYN TECHNOLOGIES INC COM 043127109 452 117,775 SH DEFINED 2 117,775
ARVINMERITOR INC COM 043353101 365 21,925 SH DEFINED 2 21,925
ASHLAND INC COM 044204105 900 31,550 SH DEFINED 2 31,550
ATLAS AIR WORLDWIDE HLDGS COM 049164106 74 49,000 SH DEFINED 1,2,4 49,000
BISYS GROUP COM 055472104 810 50,800 SH DEFINED 2,3 50,800
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
BISYS GROUP NOTE 055472AB0 2,488 2,650,000 PRN DEFINED 2,3 79,356
BJ SERVICES CO COM 055482103 1,338 40,000 SH DEFINED 2,3,4 40,000
BANK OF AMERICA CORP COM 060505104 2,435 35,000 SH DEFINED 2,3 35,000
BANK OF NEW YORK COM 064057102 321 13,400 SH DEFINED 2 13,400
BARNES & NOBLE INC COM 067774109 1,000 56,480 SH DEFINED 2,3 56,480
BARNES & NOBLE NOTE 067774AD1 2,315 2,450,000 PRN DEFINED 2,3 75,357
BARRICK GOLD CORP COM 067901108 4,626 300,200 SH DEFINED 2,4 300,200
BAXTER INTERNATIONAL COM 071813109 6,543 234,500 SH DEFINED 2,3,4 234,500
BAXTER INTERNATIONAL CORP 071813406 9,018 180,000 SH DEFINED 2,3,4 180,000
BEA SYSTEMS INC NOTE 073325AD4 9,027 10,000,000 PRN DEFINED 2,4 288,600
BEDFORD PROPERTY INVESTORS COM 076446301 146 5,700 SH DEFINED 2,4 5,700
BOEING COMPANY COM 097023105 885 26,825 SH DEFINED 2 26,825
BORG WARNER AUTOMOTIVE COM 099724106 164 3,250 SH DEFINED 2 3,250
BOSTON PROPERTIES INC COM 101121101 1,106 30,000 SH DEFINED 2,4 30,000
BOWNE & CO INC COM 103043105 371 31,050 SH DEFINED 2 31,050
BRANDYWINE REALTY TRUST SHBEN 105368203 430 19,700 SH DEFINED 2,4 19,700
BRISTOL-MYERS SQUIBB CO COM 110122108 1,174 50,725 SH DEFINED 2 50,725
BURLINGTON RESOURCES INC COM 122014103 2,440 57,200 SH DEFINED 2 57,200
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
CIGNA CORP COM 125509109 2,496 60,700 SH DEFINED 2 60,700
CIT GROUP INC COM 125581108 4,957 252,900 SH DEFINED 2,4 252,900
CNA SURETY CORPORATION COM 12612L108 215,287 27,425,147 SH DEFINED 1,2,4 27,425,147
CNF INC COM 12612W104 1,227 36,925 SH DEFINED 2 36,925
CSX CORP. COM 126408103 623 22,000 SH DEFINED 2 22,000
CABLEVISION SYSTEMS CLA 12686C109 1,818 108,600 SH DEFINED 2 108,600
CAMPBELL SOUP CO COM 134429109 676 28,800 SH DEFINED 2 28,800
CARDINAL HEALTH INC. COM 14149Y108 3,814 64,437 SH DEFINED 2,3 64,437
CARNIVAL CORP COM 143658102 2,562 102,000 SH DEFINED 2,3,4 102,000
CELESTICA INC SUBVTG 15101Q108 683 49,100 SH DEFINED 2,3,4 49,100
CELESTICA INC NOTE 15101QAA6 29,365 64,185,000 PRN DEFINED 2,3,4 364,237
CENDANT CORPORATION COM 151313103 1,325 120,600 SH DEFINED 2,3,4 120,600
CENDANT CORP DEBT 151313AF0 8,879 14,005,000 PRN DEFINED 2,3,4 467,767
CENDANT CORP DBCV 151313AH6 2,977 3,000,000 PRN DEFINED 2,3,4 117,227
CENTEX CORP COM 152312104 2,761 55,000 SH DEFINED 2,4 55,000
CEPHALON INC COM 156708109 1,268 25,900 SH DEFINED 2,3 25,900
CEPHALON INC NOTE 156708AE9 2,771 3,000,000 PRN DEFINED 2,3 37,037
CHARLES RIVER LABS DBCV 159863AL3 1,774 1,450,000 PRN DEFINED 2,3 37,304
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
CHARLES RIVER LABS COM 159864107 1,134 29,300 SH DEFINED 2,3 29,300
CHEVRON TEXACO CORP COM 166764100 1,330 20,000 SH DEFINED 2,3 20,000
CHIRON CORP COM 170040109 1,893 49,300 SH DEFINED 2,3,4 49,300
CHIRON CORP NOTE 170040AE9 19,831 34,500,000 PRN DEFINED 2,3,4 247,065
CHUBB CORP CORP 171232309 719 30,000 SH DEFINED 2,3,4 30,000
CISCO SYSTEMS INC COM 17275R102 13,629 387,300 SH DEFINED 2,3 387,300
CITIGROUP INC COM 172967101 3,210 245,000 SH DEFINED 2,3,4 245,000
CLEAR CHANNEL COM 184502102 1,865 50,000 SH DEFINED 2,3 50,000
CLEAR CHANNEL NOTE 184502AB8 2,985 3,000,000 PRN DEFINED 2,4 48,426
CLEVELAND-CLIFFS INC COM 185896107 336 16,925 SH DEFINED 2 16,925
COMCAST CORP CL A 20030N101 757 32,100 SH DEFINED 2 32,100
COMCAST CORP CLASPL 20030N200 298 13,200 SH DEFINED 2 13,200
COMMSCOPE INC COM 203372107 421 53,275 SH DEFINED 2 53,275
COMPUTER ASSOCIATES INTL COM 204912109 1,952 144,625 SH DEFINED 2 144,625
PHILLIPS PETROLEUM CO COM 20825C104 1,861 38,450 SH DEFINED 2 38,450
CORNING INC DBCV 219350AJ4 5,631 10,000,000 PRN DEFINED 2,4 83,304
COX COMMUNICATIONS SDEB 224044AX5 33,718 73,700,000 PRN DEFINED 2,3,4 559,442
COX COMMUNICATIONS NOTE 224044BC0 7,100 10,000,000 PRN DEFINED 2,3,4 118,135
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
CYTEC INDUSTRIES INC COM 232820100 1,135 41,600 SH DEFINED 2 41,600
D.R. HORTON COM 23331A109 9,369 540,000 SH DEFINED 2,4 540,000
DEL MONTE FOODS CO COM 24522P103 280 36,375 SH DEFINED 2 36,375
DELL COMPUTER CORP COM 247025109 2,139 80,000 SH DEFINED 2,3 80,000
DELPHI FINANCIAL GROUP CLA 247131105 3,189 84,000 SH DEFINED 2 84,000
DIAMONDS TRUST UNIT 252787106 13,921 166,700 SH DEFINED 2 166,700
DILLARDS INC CLA 254067101 360 22,725 SH DEFINED 2 22,725
DOMINION RESOURCES COM 25746U109 1,377 25,000 SH DEFINED 2,3,4 25,000
DOUBLECLICK NOTE 258609AC0 14,233 16,622,000 PRN DEFINED 2,3,4 402,957
DU PONT DE NEMOURS E.I. NOTE 263534109 2,578 60,800 SH DEFINED 2,3 60,800
DYCOM INDUSTRIES COM 267475101 3,103 225,934 SH DEFINED 2,4 225,934
EDISON INTERNATIONAL COM 281020107 372 31,400 SH DEFINED 2 31,400
EDO CORP COM 281347104 245 11,700 SH DEFINED 2,3 11,700
EDO CORP NOTE 281347AD6 522 500,000 PRN DEFINED 2,3 15,995
EL PASO CORP COM 28336L109 1,521 218,600 SH DEFINED 2 218,600
ELDERTRUST COM 284560109 1,459 208,200 SH DEFINED 2,4 208,200
ELECTRONIC DATA SYSTEMS COM 285661104 768 41,675 SH DEFINED 2 41,675
ENCANA CORP COM 292505104 1,990 64,000 SH DEFINED 2 64,000
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
ENTERASYS NETWORKS COM 293637104 442 283,075 SH DEFINED 2 283,075
ESTERLINE TECHNOLOGIES COM 297425100 363 20,550 SH DEFINED 2 20,550
EXXON MOBIL CORP COM 30231G102 2,096 60,000 SH DEFINED 2,3 60,000
FMC TECHNOLOGIES INC COM 30249U101 1,152 56,396 SH DEFINED 2 56,396
FMC CORP COM 302491303 1,277 46,750 SH DEFINED 2 46,750
FPL GROUP COM 302571104 8,737 146,100 SH DEFINED 2,3,4 146,100
FEDERAL HOME LOAN MTGE COM 313400301 10,216 173,000 SH DEFINED 2,3,4 173,000
FIRST CITIZENS BCSHS CLA 31946M103 48 500 SH DEFINED 2 500
FLEET BOSTON FINANCIAL COM 339030108 614 25,250 SH DEFINED 2 25,250
FOOT LOCKER COM 344849104 1,258 118,600 SH DEFINED 2,3 118,600
FOOTSTAR COM 344912100 269 38,600 SH DEFINED 2 38,600
FRANKLIN RES NOTE 354613AC5 23,636 40,000,000 PRN DEFINED 2,4 374,416
FREEPORT MCMORAN COPPER&GOLD CLB 35671D857 1,185 70,625 SH DEFINED 2 70,625
GABLES RESIDENTIAL TRUST SHBEN 362418105 345 13,825 SH DEFINED 2 13,825
THE GAP COM 364760108 1,533 103,000 SH DEFINED 2,3 103,000
THE GAP NOTE 364760AJ7 2,775 2,200,000 PRN DEFINED 2,3 136,477
GENERAL CABLE COM 369300108 338 88,950 SH DEFINED 2 88,950
GENERAL ELECTRIC COM 369604103 3,141 129,000 SH DEFINED 2,3 129,000
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
GENERAL MOTORS COM 370442105 4,138 111,500 SH DEFINED 2,3,4 111,500
GENERAL MOTORS SRCON 370442741 16,744 700,000 SH DEFINED 2,3,4 700,000
GENERAL MOTORS CLH 370442832 432 40,400 SH DEFINED 2 40,400
GEORGIA-PACIFIC COM 373298108 618 38,225 SH DEFINED 2 38,225
GLIMCHER REALTY TRUST SHBEN 379302102 471 26,550 SH DEFINED 2 26,550
GREAT LAKES REIT COM 390752103 1,082 65,000 SH DEFINED 2,4 65,000
HCA INC COM 404119109 830 20,000 SH DEFINED 2 20,000
HEALTH CARE PPTYS INVEST COM 421915109 1,264 33,000 SH DEFINED 2,4 33,000
HEALTHSOUTH CORP COM 421924101 2,415 575,000 SH DEFINED 2,4 575,000
HEALTHSOUTH CORP SDCU 421924AF8 3,880 4,000,000 PRN DEFINED 2,4 109,200
HEALTHCARE REALTY TRUST COM 421946104 6,467 221,100 SH DEFINED 2,4 221,100
HEALTH NET INC COM 42222G108 919 34,800 SH DEFINED 2 34,800
HEARST-ARGYLE TELEVISION COM 422317107 1,688 70,000 SH DEFINED 2 70,000
HEWLETT-PACKARD COM 428236103 1,062 61,200 SH DEFINED 2 61,200
IDEC PHARMACEUTICALS COM 449370105 1,146 34,100 SH DEFINED 2,3,4 34,100
IMC GLOBAL COM 449669100 1,200 112,500 SH DEFINED 2,4 112,500
INCO LTD COM 453258402 1,087 51,300 SH DEFINED 2,4 51,300
INCO LTD NOTE 453258AM7 3,387 5,000,000 PRN DEFINED 2,4 132,765
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
INSITUFORM TECHNOLOGIES CLA 457667103 1,845 108,200 SH DEFINED 2,4 108,200
INTEL COM 458140100 1,233 79,200 SH DEFINED 2,3 79,200
INTL BUSINESS MACHINE COM 459200101 9,781 126,200 SH DEFINED 2,4 126,200
INTERNATIONAL PAPER COM 460146103 3,497 100,000 SH DEFINED 2,4 100,000
INTL RECTIFIER CORP COM 460254105 243 12,900 SH DEFINED 2,3 12,900
INTERSTATE BAKERIES COM 46072H108 116 7,625 SH DEFINED 2 7,625
INVITROGEN INC NOTE 46185RAD2 661 783,000 PRN DEFINED 2 9,094
IONICS INC COM 462218108 3,824 167,700 SH DEFINED 2,4 167,700
JOHNSON & JOHNSON COM 478160104 2,686 50,000 SH DEFINED 2,3 50,000
KELLWOOD CO COM 488044108 292 11,225 SH DEFINED 2 11,225
KENNAMETAL INC COM 489170100 345 10,000 SH DEFINED 2 10,000
KERR MC GEE CORP COM 492386107 4,430 100,000 SH DEFINED 2,4 100,000
KINDRED HEALTHCARE COM 494580103 6 314 SH DEFINED 2,4 314
L-3 COMMUNICATIONS CORP COM 502424104 4,057 89,740 SH DEFINED 2,3 89,740
L-3 COMMUNICATIONS CORP NOTE 502424AB0 3,078 2,400,000 PRN DEFINED 2,3 58,896
LABORATORY CRP OF AMER HLDGS COM 50540R409 2,371 102,400 SH DEFINED 2,3,4 102,400
LAMAR ADVERTISING CO CLA 512815101 1,308 39,050 SH DEFINED 2,3 39,050
LAMAR ADVERTISING CO NOTE 512815AF8 2,875 2,800,000 PRN DEFINED 2,3 60,540
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
LEAR SEATING CORP COM 521865105 913 27,425 SH DEFINED 2 27,425
LEHMAN BROS HLDG FRNT 524908EC0 2,481 2,500,000 PRN DEFINED 2,4 26,016
LENNOX INTERNATIONAL COM 526107107 741 56,050 SH DEFINED 2,3 56,050
LIBERTY MEDIA COM 530718105 10,936 1,223,248 SH DEFINED 2,3,4 1,223,248
LINCOLN NATIONAL CORP IND COM 534187109 2,053 65,000 SH DEFINED 2,4 65,000
LOCKHEED MARTIN COM 539830109 2,714 47,000 SH DEFINED 2,3 47,000
LOWES COMPANIES COM 548661107 7,410 198,300 SH DEFINED 2,3,4 198,300
LOWES COMPANIES NOTE 548661CG0 18,904 20,000,000 PRN DEFINED 2,3,4 344,240
LUBRIZOL CORP COM 549271104 591 19,375 SH DEFINED 2 19,375
MARSH & MCLENNAN COS COM 571748102 2,662 57,600 SH DEFINED 2 57,600
MCDONALDS CORP COM 580135101 1,177 73,200 SH DEFINED 2 73,200
MEDTRONIC INC COM 585055106 6,521 143,000 SH DEFINED 2,3 143,000
MERRILL LYNCH & CO COM 590188108 4,808 121,600 SH DEFINED 2,3,4 121,600
MERRILL LYNCH & CO NOTE 590188A65 14,700 28,000,000 PRN DEFINED 2,3,4 159,004
MERRILL LYNCH &CO FRNT 590188A73 35,558 36,500,000 PRN DEFINED 2,3,4 504,477
METLIFE INC COM 59156R108 3,921 145,000 SH DEFINED 2,4 145,000
MICROSOFT CORP COM 594918104 3,774 73,000 SH DEFINED 2,3 73,000
MILACRON INC COM 598709103 254 42,675 SH DEFINED 2 42,675
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
MONSANTO CO COM 61166W101 1,370 71,150 SH DEFINED 2 71,150
MORGAN STANLEY ASIA PAC COM 61744U106 796 110,500 SH DEFINED 2 110,500
MORGAN STANLEY INDIA INVS COM 61745C105 753 75,800 SH DEFINED 2 75,800
MOTOROLA INC NOTE 620076AJ8 2,211 3,000,000 PRN DEFINED 2,4 100,602
NABORS INDS INC DBCV 629568AF3 7,517 12,000,000 PRN DEFINED 2,4 84,894
NACCO INDS INC CLA 629579103 512 11,700 SH DEFINED 2 11,700
NATIONWIDE FINANCIAL SERV CLA 638612101 1,146 40,000 SH DEFINED 2,4 40,000
NEWHALL LAND & FARMING DEPREC 651426108 2,217 77,100 SH DEFINED 2,4 77,100
NEWS AMER INC NOTE 652482AZ3 42,007 80,300,000 PRN DEFINED 2,3,4 975,508
NORFOLK SOUTHERN CORP. COM 655844108 9,935 497,000 SH DEFINED 2,4 497,000
NORTH FORK BANCORP COM 659424105 1,687 50,000 SH DEFINED 2,4 50,000
NORTHERN TRUST CORP COM 665859104 768 21,900 SH DEFINED 2 21,900
OLD REPUBLIC INTL CORP COM 680223104 5,342 190,800 SH DEFINED 2,4 190,800
OMNICOM GROUP COM 681919106 3,627 56,800 SH DEFINED 2,3,4 56,800
OMNICOM GROUP NOTE 681919AK2 9,011 9,000,000 PRN DEFINED 2,4 81,810
OMNICOM GROUP NOTE 681919AM8 12,531 12,500,000 PRN DEFINED 2,3,4 113,625
ORACLE CORP COM 68389X105 351 32,500 SH DEFINED 2 32,500
PUBLIC SERVICE CO OF NM COM 69349H107 439 18,450 SH DEFINED 2 18,450
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
PPL CORPORATION COM 69351T106 1,613 46,500 SH DEFINED 2 46,500
PALL CORP COM 696429307 1,334 80,000 SH DEFINED 2,4 80,000
PATHMARK STORES COM 70322A101 3,724 734,432 SH DEFINED 2,4 734,432
PAYLESS SHOESOURCE COM 704379106 1,255 24,375 SH DEFINED 2 24,375
PEPSI BOTTLING GROUP COM 713409100 2,570 100,000 SH DEFINED 2,4 100,000
PEPSICO INC COM 713448108 3,462 82,000 SH DEFINED 2,3 82,000
PFIZER INC COM 717081103 4,983 163,000 SH DEFINED 2,3 163,000
PHARMACEUTICAL HLDRS TR DEPREC 71712A206 6,914 93,300 SH DEFINED 2 93,300
MONSANTO CO COM 71713U102 614 14,700 SH DEFINED 2 14,700
PIONEER STANDARD ELECTR COM 723877106 453 49,375 SH DEFINED 2 49,375
PLACER DOME INC COM 725906101 1,710 148,700 SH DEFINED 2 148,700
PLUM CREEK TIMBER CO COM 729251108 1,180 50,000 SH DEFINED 2,4 50,000
PRESIDENTIAL LIFE CORP COM 740884101 138 13,925 SH DEFINED 2 13,925
PRIME HOSPITALITY CORP COM 741917108 52 6,375 SH DEFINED 2,4 6,375
PROCTER & GAMBLE COM 742718109 2,750 32,000 SH DEFINED 2,3 32,000
PROSPECT STREET INC SHS COM 743590101 904 165,785 SH DEFINED 2,4 165,785
PROVINCE HEALTHCARE COM 743977100 466 48,600 SH DEFINED 2,3 48,600
PROVINCE HEALTHCARE NOTE 743977AC4 1,600 1,850,000 PRN DEFINED 2,3 69,957
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
PUBLIC SVC ENTERPRISE GRP COM 744573106 4,074 128,300 SH DEFINED 2,3,4 128,300
PULTE CORP COM 745867101 7,181 150,000 SH DEFINED 2,4 150,000
QUALCOMM COM 747525103 2,365 65,000 SH DEFINED 2,3 65,000
RFS HOTEL INVESTORS INC COM 74955J108 373 34,350 SH DEFINED 2 34,350
R.H. DONNELLEY CORP COM 74955W307 501 17,100 SH DEFINED 2 17,100
RADIAN GROUP INC COM 750236101 763 20,525 SH DEFINED 2 20,525
REGENERON PHARM NOTE 75886FAB3 1,733 1,920,000 PRN DEFINED 2 63,468
RELIANT RESOURCES COM 75952B105 1,597 499,100 SH DEFINED 2 499,100
REPUBLIC BANCORP COM 760282103 353 29,955 SH DEFINED 2 29,955
RESMED INC COM 761152107 438 14,400 SH DEFINED 2,3 14,400
RESMED INC NOTE 761152AB3 1,347 1,450,000 PRN DEFINED 2,3 23,927
SK TELECOM CO LTD ADR 78440P108 4,394 203,500 SH DEFINED 2,4 203,500
SCHLUMBERGER LIMITED COM 806857108 2,466 58,600 SH DEFINED 2,3 58,600
SCHOOL SPECIALTY COM 807863105 545 27,370 SH DEFINED 2,3 27,370
SCHOOL SPECIALTY NOTE 807863AC9 1,335 1,375,000 PRN DEFINED 2,3 42,582
SEALED AIR CORP PFD 81211K209 643 15,100 SH DEFINED 2 15,100
SEMTECH CORP COM 816850101 478 43,100 SH DEFINED 2,3 43,100
SEMTECH CORP NOTE 816850AD3 2,091 2,400,000 PRN DEFINED 2,3 56,832
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
SERVICEMASTER COMPANY COM 81760N109 552 49,750 SH DEFINED 2 49,750
SIEBEL SYSTEMS NOTE 826170AC6 1,932 2,000,000 PRN DEFINED 2,4 85,777
SIRIUS SATELLITE RADIO COM 82966U103 604 965,572 SH DEFINED 2,4 965,572
SOLECTRON CORP COM 834182107 586 165,100 SH DEFINED 2 165,100
SOLECTRON CORP NOTE 834182AK3 4,880 8,000,000 PRN DEFINED 2,3,4 98,647
SOLECTRON CORP NOTE 834182AL1 6,090 12,000,000 PRN DEFINED 2,4 141,434
SOUTHWEST GAS COM 844895AS1 16,147 15,000,000 SH DEFINED 2,3 15,000,000
SPANISH BROADCASTING SYS CLA 846425882 1,183 163,400 SH DEFINED 2,4 163,400
SPHERION CORPORATION COM 848420105 504 75,200 SH DEFINED 2 75,200
SPRINT CORP (PCS GROUP) COM 852061506 5,191 1,138,528 SH DEFINED 1,2,3,4 1,138,528
STAR GAS PARTNER SRSUB 85512C204 360 29,229 SH DEFINED 2,4 29,229
STARBUCKS CORP COM 855244109 1,427 70,000 SH DEFINED 2,3 70,000
STEINMART COM 858375108 174 28,550 SH DEFINED 2 28,550
STILWELL FINANCIAL COM 860831106 1,042 79,700 SH DEFINED 2 79,700
STMICROELECTRONICS NYREG 861012102 1,194 60,000 SH DEFINED 2,4 60,000
STMICROELECTRONICS NOTE 861012AB8 16,435 19,000,000 PRN DEFINED 2,4 499,548
SUNOCO INC COM 86764P109 3,318 100,000 SH DEFINED 2,4 100,000
SYMANTEC CORP COM 871503108 2,394 57,200 SH DEFINED 2,3 57,200
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
SYMANTEC CORP NOTE 871503AB4 3,381 2,400,000 PRN DEFINED 2,3 70,299
TJX COS. INC. COM 872540109 3,840 196,200 SH DEFINED 2,3,4 196,200
TJX COS INC NOTE 872540AL3 9,626 11,800,000 PRN DEFINED 2,3,4 385,471
TARGET CORP COM 87612E106 2,400 80,000 SH DEFINED 2,3 80,000
TECH DATA CORP COM 878237106 849 31,500 SH DEFINED 2,4 31,500
TEJON RANCH COM 879080109 612 20,600 SH DEFINED 2 20,600
TELLABS INC COM 879664100 488 67,175 SH DEFINED 2 67,175
TENET HEALTHCARE CORP COM 88033G100 738 45,000 SH DEFINED 2 45,000
TRANSOCEAN SEDCO DBCV 893830AA7 3,075 5,000,000 PRN DEFINED 2,4 40,783
TRAVELERS PPTY CASUALTY CLA 89420G109 662 45,184 SH DEFINED 2,4 45,184
TRAVELERS PPTY CASUALTY NTCVJR 89420G307 536 24,000 SH DEFINED 2,4 24,000
TRIBUNE CO COM 896047107 4,091 90,000 SH DEFINED 2,3 90,000
TRINITY INDUSTRIES COM 896522109 444 23,425 SH DEFINED 2 23,425
TRIZEC PROPERTIES INC COM 89687P107 995 106,000 SH DEFINED 2 106,000
TYCO INTERNATIONAL LTD COM 902124106 286 16,750 SH DEFINED 2 16,750
USI HOLDINGS CORP COM 90333H101 43,948 3,740,278 SH DEFINED 2,4 3,740,278
UNION PACIFIC COM 907818108 602 10,050 SH DEFINED 2 10,050
UNITED PARCEL SERVICE CLB 911312106 2,807 44,500 SH DEFINED 2,3 44,500
Column Column Column Column Column Column Column Column
1: 2: 3: 4: 5: 6: 7: 8:
Name Title Shares or Voting Authority
of of CUSIP Value Principal SH/ Put/ Investment Other ------------------
Issuer Class Number (x$1000) Amount PRN Call Discretion Mgrs Sole Shared None
UNIVERSAL CORP COM 913456109 389 10,525 SH DEFINED 2 10,525
UNOCAL CORP COM 915289102 1,089 35,600 SH DEFINED 2 35,600
USFREIGHTWAYS CORP COM 916906100 366 12,725 SH DEFINED 2 12,725
VALERO ENERGY CORP COM 91913Y100 2,032 55,000 SH DEFINED 2 55,000
VEECO INSTRUMENTS INC. COM 922417100 258 21,650 SH DEFINED 2,3 21,650
VENTAS INC COM 92276F100 2,113 184,575 SH DEFINED 2,4 184,575
VENATOR GROUP NOTE 922944AB9 2,528 2,500,000 PRN DEFINED 2,3 158,168
VERITAS SOFTWARE COM 923436109 685 41,300 SH DEFINED 2,4 41,300
VERZION COMMUNICATIONS COM 92343V104 2,098 53,900 SH DEFINED 2,3,4 53,900
VERIZON GLOBAL NOTE 92344GAN6 13,369 23,000,000 PRN DEFINED 2,4 182,431
VIAD CORP COM 92552R109 1,218 54,500 SH DEFINED 2 54,500
WAL MART STORES INC COM 931142103 3,258 64,500 SH DEFINED 2,3 64,500
WALGREEN CO COM 931422109 2,335 80,000 SH DEFINED 2,3 80,000
WASHINGTON MUTUAL INC COM 939322103 1,104 31,975 SH DEFINED 2 31,975
WELLS FARGO COMPANY COM 949746101 4,687 100,000 SH DEFINED 2,3 100,000
WEYERHAEUSER COMPANY COM 962166104 246 5,000 SH DEFINED 2 5,000
WHIRLPOOL CORPORATION COM 963320106 625 11,975 SH DEFINED 2 11,975
WILLIAMS COS INC COM 969457100 123 45,412 SH DEFINED 1,2 45,412
WILSONS THE LEATHER EXPERTS COM 972463103 368 73,500 SH DEFINED 2 73,500
WISCONSIN ENERGY CORP COM 976657106 1,731 68,700 SH DEFINED 2 68,700
XCEL ENERGY INC COM 98389B100 1,214 110,400 SH DEFINED 2 110,400
YORK INTERNATIONAL CORP COM 986670107 398 15,575 SH DEFINED 2 15,575
ANNUITY AND LIFE RE HOLDINGS ORD G03910109 177 76,300 SH DEFINED 2 76,300
COOPER INDUSTRIES INC CLA G24182100 1,032 28,300 SH DEFINED 2 28,300
IPC HOLDINGS LTD ORD G4933P101 1,212 38,425 SH DEFINED 2 38,425
NABORS INDUSTRIES INC SHS G6359F103 317 9,000 SH DEFINED 2 9,000
TRENWICK GROUP LTD COM G9032C109 2,669 3,707,400 SH DEFINED 1,2,4 3,707,400
XL CAPITAL LTD CLA G98255105 502 6,500 SH DEFINED 2 6,500
ALCON INC COM H01301102 3,195 81,000 SH DEFINED 2,3 81,000