Chicago-based insurer CNA Financial Corp. announced that it agreed to sell the renewal rights for most of the treaty business of CNA Re, its assumed reinsurance business unit, to Folksamerica Reinsurance Co. Concurrently with the sale, CNA will be withdrawing from the assumed reinsurance business and will manage the run-off of its retained liabilities.
“Today’s announcement allows CNA to concentrate its property and casualty capabilities on its primary operations,” said CEO Stephen W. Lilienthal. “CNA Re, which expects to write approximately $600 million of premium in 2003, has done an outstanding job building a profitable book of reinsurance business. We are pleased that we found a high quality partner to purchase the renewal rights to this book of business.”
Under the terms of the transaction, Folksamerica will compensate CNA based upon the amount of premiums renewed by Folksamerica over the next two contract renewals. In addition, Folksamerica has indicated its intention to offer employment to a number of CNA Re’s staff.
Topics Reinsurance
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