Following the announcement that the billion dollar surety case between JP Morgan Chase and 11 insurance companies over Enron related transactions had been settled, both The St. Paul and CNA issued statements indicating that they expected their portion of the payments under the agreement would be minimal.
The St. Paul said that it expects an after tax charge of around $5 million as a result of the settlement, which it plans to take in the 4th quarter of 2002.
CNA Surety said it had agreed to pay $40.7 million, “including assignment of its rights to any recoveries in the Enron bankruptcy, for a full release of its obligations under the surety bonds.” It added that the loss, net of reinsurance recoveries, had been fully reserved.
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