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 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.”
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