Gerling Owes CNA $600 Million

CNA Financial Corp. announced that as of Dec. 31, 2002, its property and casualty insurance subsidiaries have about $600 million of reinsurance receivables due from Gerling-Konzern Allgemeine Versicherungs AG and its property and casualty insurance subsidiaries (collectively known as the Gerling Group).

Of this amount, all but about $170 million is supported by collateral in the form of letters of credit, trust agreements, funds withheld balances and other payable offsets. The uncollateralized amount is primarily due from the Gerling Group’s New York-domiciled insurance subsidiaries. CNA continues to bill reinsured losses and collect payments from the Gerling Group in the normal course.