CNA to post Q2 underwriting loss after $182m COVID-19 hit
Commercial insurer CNA Financial Corporation expects to report losses of $182 million related to COVID-19, $61 million related to civil unrest and $58 million related primarily to severe weather-related events, for a total catastrophe loss estimate of pre-tax $301 million, in the second quarter of 2020.
CNA said the estimated COVID-19 losses follow a "detailed review and analysis of existing and potential exposures" and represent the company's best estimate of its ultimate insurance losses and loss adjustment expenses, including defense costs resulting from the pandemic and the consequent economic crisis.
The losses are substantially driven by healthcare professional liability with additional impacts from workers' compensation, management liability, commercial property, trade credit, and surety.
Overall, the company expects to report a pre-tax underwriting loss for the quarter of $210 million, a net income of $151 million and core income of $99 million for the quarter, subject to final quarter-end procedures.
