Chicago-based CNA Financial Corp. announced that its specialty lines segment expects to record an after-tax charge of approximately $49 million in the second quarter of 2003 in connection with a recent adverse arbitration decision involving a single large property and business interruption loss.
The decision was rendered against an insurance pool in which CNA was a former participant. The loss was caused by a fire which occurred in 1995. Further details will be provided when they are publicly available.
“We are disappointed and surprised by the arbitration decision,” said Stephen W. Lilienthal, CEO of the CNA insurance companies. “In our experience it is highly unusual for a property loss of this nature to have such adverse development so long after the loss event.”
Topics Profit Loss Property
Was this article valuable?
Here are more articles you may enjoy.
Meta Loses Insurance for Defense in Major Social Media Addiction Litigation 
Giuliani Fails to Get $10 Million Sexual Harassment Suit in New York Dismissed 
Agency Customer Rep and Miami Businessman Killed in Separate Boat Accidents 
A Little Behind Schedule, But Execs Say Sypher Insurance is on Track for May Debut 
