CNA FINANCIAL REPORTS 4Q LOSS

CNA Financial Corp. reported a fourth-quarter 2001 net loss of $22 million, compared with net income of $193 million for the same quarter in 2000. According to Chairman and CEO Bernard Hengesbaugh, 2001 was a year when the company stepped up to a series of tough issues. Hengesbaugh said now it’s time for the company to deliver, noting it is well positioned to make that happen. The fourth-quarter 2001 net loss included $125 million after-tax restructuring and other related charges; $52 million after-tax Enron related losses, net of anticipated reinsurance recoveries; and $69 million after-tax reserve strengthening, primarily for the current accident year, in CNA’s London-based commercial and marine operations. Fourth-quarter 2001 net operating loss included a $160 million after-tax charge to strengthen prior underwriting year loss reserves of its London-based reinsurance operation, CNA Reinsurance Company Limited (CNA Re U.K.). Net realized investment gains for the fourth quarter 2001 included a $160 million after-tax adjustment to reduce the $285 million after-tax estimated impairment loss related to the anticipated sale of CNA Re U.K., which was recorded in the second quarter of 2001. Included in the net operating loss for the year ended Dec. 31, 2001 was a $2.1 billion after-tax charge related to a change in estimate of prior year loss reserves and the related premium accruals recorded in the second quarter 2001; $304 million after-tax losses from the 9/11 World Trade Center attack and related events recorded in the third quarter; and previously noted restructuring and other related charges; Enron-related losses; and reserve strengthening recorded in the fourth quarter.

Topics Profit Loss