CNA Q3 Loss Driven by Asbestos Charge

CNA Financial Corp. announced third quarter 2010 results, which included a net operating loss of $158 million, and net loss of $140 million.

The third quarter 2010 results included an after-tax net loss of $365 million related to the previously announced agreement to cede asbestos and environmental pollution liabilities to Berkshire Hathaway’s National Indemnity Co.; $344 million was recognized in continuing operations and $21 million was recognized in discontinued operations.

The combined ratio for the third quarter for property/casualty operations was 97.9 percent.

Net operating results for the three months ended September 30, 2010 decreased $489 million as compared with the same period in 2009. Excluding the loss associated with the asbestos loss portfolio transfer, net operating income decreased $145 million. Net operating income for the company’s core property/ casualty operations decreased $19 million as they were unfavorably affected by lower net investment income.

Net operating results for non-core segments decreased $126 million, which includes the favorable impact in 2009 of a $61 million after-tax gain arising from a settlement that resolved litigation related to the placement of personal accident reinsurance.

For the three months ended September 30, 2010, catastrophe losses were $8 million after-tax, as compared to catastrophe losses of $15 million after-tax for the same period in 2009.


CNA Specialty provides professional and management liability as well as other property/ casualty coverages and services, both domestically and abroad, through a network of brokers, managing general underwriters and independent agencies. Its third quarter saw:

CNA Commercial works with an independent agency distribution system and network of brokers to market a range of property/casualty insurance products and services to small, middle-market and large businesses and organizations domestically and abroad. For its third quarter: