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Monday, February 10, 2014

Loews' unit CNA to sell life and group insurance business, (NYSE: CNA)

CNA Financial Corp said it would sell its life and group insurance business, on the same day that parent Loews Corp reported a bigger quarterly loss, hurt by impairment charges.CNA said it was selling the business, Continental Assurance Co, to a subsidiary of Wilton Re Holdings Ltd, and was expecting to book an after-tax charge of about $220 million in the first quarter of 2014.CNA said it expected net proceeds of about $615 million from the sale and a portion of this would be in the form of a dividend from Continental.The sale will reduce CNA's non-core life and group gross GAAP insurance reserves by $3.4 billion, or 25 percent, and dispose of most of CNA's payout annuity business.

CNA Financial Corporation (CNAF) is an insurance holding company. Shares of CNA traded higher by 0.33% or $0.13/share to $39.67. In the past year, the shares have traded as low as $30.18 and as high as $42.93. On average, 96044 shares of CNA exchange hands on a given day and today's volume is recorded at 331258.