CNA Announces Preliminary Loss Exposure Estimate Related to Hurricane Charley

CNA Financial Corporation reported its preliminary estimate of net losses related to Hurricane Charley. While it is too early to estimate precisely the financial impact on CNA of this catastrophe, based upon information currently available to CNA management, CNA estimates its losses net of anticipated reinsurance recoveries will be in the range of $40 to $60 million after-tax. Industry loss estimates currently range from $6 to $8 billion.

The loss estimate is subject to considerable uncertainty, particularly given the short period of time since the hurricane occurred, the pace of claims made to date and the possibility of unknown damage theories and amounts. CNA’s actual losses from this catastrophe could exceed CNA’s estimate.