NU Online News Service, Aug. 2, 2:30 p.m. – CNA Financial Corp., Chicago, is reporting a $1.8 billion net loss for the second quarter on $2.7 billion in revenue, down from $330 million in net income on $3.8 billion in revenue for the second quarter of 2000.
The net operating loss, which excludes $313 million in net gains on investments sold during the quarter, was $2.1 billion, down from a net operating profit of $154 million.
CNA sells property-casualty insurance and reinsurance as well as some life insurance and groups benefits products. The company is attributing its mammoth second-quarter operating loss to problems with asbestos claims, environmental claims and mass tort claims on the property-casualty side.
The company hopes to make up for the loss by raising $1 billion through a rights offering.
The group benefits unit, which sells group life and group health insurance products, is reporting $16 million in net operating income for the quarter on $876 in premium, investment and miscellaneous revenue, compared with $15 million in net operating income on $931 million in revenue for the second quarter of 2000.