CNA reports $1.76b on charges.(Top Stories Of The Week)(CNA Financial Corporation reported a $1.76 billion net loss)

National Underwriter Property & Casualty-Risk & Benefits Management, November, 2003 by Ha, Michael

CNA Financial Corporation, after delaying the release of its third-quarter earnings results for one week, reported a $1.76 billion net loss, triggered by a $1.83 billion after-tax reserve charge to beef up reserves. The Chicago-based insurer's quarterly loss contrasted with a net profit of $54 million for the period one year ago.

Speaking on a conference call with analysts last Wednesday shortly after the announcement, Stephen Lilienthal, chief executive officer of the CNA insurance companies, said taking a reserve charge of this magnitude was "a very painful, protracted but necessary" process. "Today we announced the charge of $1.8 billion after-tax, a large and significant charge by any measure," he said. But, he added, CNA did what it announced it...

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