CNA Monetary Declares Switch Of Legacy Extra Staff’ Compensation Portfolio To Cavello Bay Reinsurance Restricted

CHICAGO, December 30, 2020 / PRNewswire / – CNA Financial Corporation (NYSE: CNA) announced today that its principal operating subsidiary, Continental Casualty Company, has entered into an agreement with Cavello Bay Reinsurance Limited (“Cavello”), a subsidiary of Enstar Group Limited Cavello will reinsure an old portfolio of compensation policies for excess workers. According to the terms of the Transaction which will be deemed effective from the date January 1, 2020, CNA is about to cede to Cavello $ 690 million which in 2007 and earlier under a retrospective reinsurance contract with an overall limit of $ 1 billion.

The transaction is expected to close in the first quarter of 2021, subject to regulatory approval and other closing conditions. At this point, CNA expects an after-tax loss of approximately $ 12 million.

Dino RobustoCNA Chairman and CEO stated, “The transfer of legacy reserves supports CNA’s continued commitment to further develop our core business. We are excited to be working with an excellent partner in Enstar to achieve our goals.”

about the company

CNA is one of the largest US commercial property and casualty insurance companies. CNA offers a wide range of standard and specialty property and casualty insurance products and services to businesses and professionals in the United States. Canada and Europe, supported by more than 120 years of experience and approximately 45 billion dollars of the invested assets. For more information, please visit CNA at www.cna.com.

Forward-Looking Statements

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SOURCE CNA