Continental Casualty Co., CNA Financial Corp.’s principal operating subsidiary, and several of its other insurance subsidiaries, will transfer its legacy asbestos and environmental pollution liabilities to National Indemnity Co. (NICO), following a reinsurance agreement.

Under the terms of the transaction, effective Jan. 1, 2010, the CNA companies will cede approximately $1.6 billion of net asbestos and environmental pollution liabilities to NICO, a subsidiary of Berkshire Hathaway Inc., under a retroactive reinsurance agreement with an aggregate limit of $4 billion. The aggregate reinsurance limit will also cover credit risk on existing third-party reinsurance related to these liabilities.

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