CNA Sets London Reinsurance Runoff
NU Online News Service, July 15, 1:35 p.m. EST?CNA Financial Corporation said it has signed a binding purchase agreement to sell CNA's London reinsurance operation to Tawa UK Ltd., a run-off company.
Details of the arrangement were not immediately available.
CNA had announced last autumn that it would consolidate its reinsurance operations, operating solely from the United States, and intended to seek a buy of its London reinsurance operation, CNA Reinsurance Company Limited (UK).
The agreement is subject to the approval of the U.K. Financial Services Authority and the Illinois Insurance Department. Close of the sale is expected by end of 2002.
CNA previously recorded an impairment loss in anticipation of the sale of and does not expect to record an additional loss under the terms of the agreement.
The share purchase agreement includes all business underwritten by CNA Reinsurance Company Limited (UK) since its inception.
Tawa, which was formed in 2001 in London to acquire and manage property and casualty insurance and reinsurance companies in run-off, has agreed to manage CNA reinsurance Company Limited (UK) as a run-off operation.
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