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Member, Beacon International Group, Ltd.
CHICAGO—CNA Financial Corp. said Tuesday that it has completed its deal with Berkshire Hathaway Inc. under which it will cede $1.6 billion in net asbestos and environmental pollution liabilities and pay a $2 billion premium to Berkshire for $4 billion in reinsurance coverage.
CNA said it expects to recognize an after-tax loss of about $370 million in the third quarter as a result of the deal.
Analysts have said the deal, which was announced in July, will remove a potentially major legacy liability for CNA.
CHICAGO—CNA Financial Corp. has entered into an agreement with Berkshire Hathaway Inc.’s National Indemnity Co. unit under which, for a $2 billion reinsurance premium, it will cede $1.6 billion of net asbestos and environmental pollution liabilities to the unit.