Chicago-based insurer CNA expects to report a 2001 fourth quarter loss due to restructuring charges and Enron-related losses.
CNA said it expected its fourth quarter loss to be between $20m and $35m (£14m and £25m). This is sharply down on 2000's fourth quarter, when it reported net income of $193m (£136m).
Restructuring and other related charges are expected to hit $125m (£88m) after tax, while the Enron-related losses could reach $52m (£37m), net of anticipated reinsurance recoveries.
CNA has also recorded a $69m (£49m) reserve strengthening charge, primarily for the current accident year, in its London-based primary commercial and marine operations.
For the year as a whole, CNA said it expected a loss of $1.6bn (£1.1bn) compared with net income of $1.2bn (£844m) a year ago.
In December, CNA slashed nearly 2,000 jobs, closing more than half of its offices and discontinuing operations in its annuities unit, as part of a continued turnaround effort.
The company had warned in November that it was likely to take a fourth-quarter restructuring charge.
CNA is scheduled to announce its full quarterly earnings on Thursday, 14 February 2002.
