The divestment of the Continental Assurance Company (CAC) will allow CNA to concentrate on property and casualty insurance business.
Besides selling CAC, certain affiliates of each of CNA and Wilton Re have reached a 100% reinsurance agreement and related transaction agreements. A Wilton Re subsidiary will reinsure all of the run-off structured settlement annuities reinsured by a Bermuda-based subsidiary of CNA.
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CNA chairman and CEO Thomas Motamed said, "Over the past several years, we have simplified our operations through targeted dispositions and made strategic investments in higher growth businesses."
"This transaction is another step in the execution of our strategy to create a more focused P&C business capable of delivering consistent performance."
The transaction is expected to complete during the second quarter of 2014, pending receipt of regulatory approvals and satisfying customary closing conditions.
Morgan Stanley & Co acted as the financial advisor and Hogan Lovells US served as the legal counsel for CNA over this transaction.
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