Chicago-based commercial insurer CNA‘s woes continue as the company announced a net loss of $28 million for the third quarter, thanks in part to $174 million in losses due to the quadruple kick to the pants delivered by Hurricanes Charley, Frances, Ivan and Jeanne.
In addition, the company recorded a bad debt provision related to Professional Employer Organization accounts of $62 million after-tax. The third quarter of 2003 net results were adversely impacted by significant charges, primarily related to net prior-year development and increases in the bad debt provisions for insurance and reinsurance receivables.
CEO Steve Lilienthal tried to put a brave face on the situation: “The hurricane losses notwithstanding, the thirdrd quarter of 2004 was a continuation of the progress made in the first two. We continued to improve our underlying performance with a consistent focus on underwriting and portfolio optimization.”
CNA is the country’s seventh-largest commercial insurer.
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