Berkshire Takes On CNA's Asbestos Liabilities For $2B

Law360, New York (July 15, 2010, 5:27 PM EDT) -- CNA Financial Corp.'s Continental Casualty Co. and other insurance subsidiaries have agreed to pay Berkshire Hathaway Inc.'s National Indemnity Co. a $2 billion reinsurance premium to assume their legacy asbestos and environmental pollution liabilities.

The CNA Financial companies will cede about $1.6 billion of net asbestos and environmental pollution liabilities to National Indemnity under a retroactive reinsurance agreement effective Jan. 1 with an aggregate limit of $4 billion, CNA Financial said Thursday.

The aggregate reinsurance limit will also be used to cover credit risk on existing...
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