Chicago-based CNA Surety Corporation announced that it recently received a claim notification on a $19.5 million insurance program bond.
The commercial surety bond reportedly supports the credit obligations of a principal to a third party insurance company with respect to various property and liability insurance services. The principal has reportedly been operating under a voluntary petition of reorganization under Chapter 11 of the United States Bankruptcy Code.
Based upon its evaluation of the claim notification and currently available information, CNA Surety reports net incurred losses of approximately $15.0 million pre tax and $9.8 million after tax, or 23 cents per share, for the third quarter of 2003 related to this claim.
CNA Surety said the accuracy of these estimates, as well as the amount and timing of any actual loss payments, may be affected by a number of contingencies, including the actions of the principal and other parties to the underlying contracts, possible judicial rulings and any amounts that the company may recover under indemnity agreements related to the surety bond.
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