Chicago-based CNA Financial Corporation noted that as of Dec. 31, 2002, its property and casualty insurance subsidiaries have approximately $600 million of reinsurance receivables due from Gerling-Konzern Allgemeine Versicherungs AG and its property and casualty insurance subsidiaries (collectively, the Gerling Group).
Of this amount, all but approximately $170 million is supported by collateral in the form of letters of credit, trust agreements, funds withheld balances and other payable offsets. The uncollateralized amount is primarily due from the Gerling Group’s New York-domiciled insurance subsidiaries.
CNA continues to bill reinsured losses and collect payments from the Gerling Group in the normal course. At Dec. 31, 2002, CNA’s GAAP equity was $9.4 billion.
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