Willis expects to be covered by an insurance policy it purchased to recover costs tied to legal disputes, and the agreement includes no admission of wrongdoing, the London- based broker said yesterday in a regulatory filing. Willis will make two payments to CNA by Dec. 23, the company said.
Willis agreed in June to pay Assurant Inc. $139 million after an Assurant unit sued the broker in September 2007. Assurant and CNA alleged that a Willis employee was negligent with the placement of accident reinsurance, Willis said in a filing.
The settlement will increase CNA’s third-quarter operating results by about $60 million after taxes, the company said in a separate filing. CNA is controlled by Loews Corp.
Willis recorded a $125 million charge tied to the CNA claim in the second quarter. The remaining $5 million will be reflected in the third quarter, Willis said.