(Reuters) – CNA Financial Corp said it would sell its life and group insurance business, on the same day that parent Loews Corp reported a bigger quarterly loss, hurt by impairment charges.
CNA said it was selling the business, Continental Assurance Co, to a subsidiary of Wilton Re Holdings Ltd, and was expecting to book an after-tax charge of about $220 million in the first quarter of 2014.
CNA said it expected net proceeds of about $615 million from the sale and a portion of this would be in the form of a dividend from Continental.
The sale will reduce CNA's non-core life and group gross GAAP insurance reserves by $3.4 billion, or 25 percent, and dispose of most of CNA's payout annuity business.
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