Broker pays CNA $130m without admitting liability
Willis has agreed to pay CNA Financial $130m to settle a reinsurance legal battle, Bloomberg reports.
The agreement includes no admission of wrongdoing, Willis said in a regulatory filing and it expects its costs to be to be covered by insurance. Willis will make two payments to CNA by 23 December.
Willis agreed in June to pay Assurant $139m after an Assurant unit sued in September 2007. Assurant and CNA alleged that a Willis employee was negligent with the placement of accident reinsurance, Willis said.
Boost to CNA’s accounts
The settlement will increase CNA’s third-quarter operating results by about $60m after taxes.
Willis recorded a $125m charge tied to the CNA claim in the second quarter. The remaining $5m will show in the third quarter, Willis said.