AEP charge offsets improved underwriting at CNA

CNA reported an earnings miss for the first quarter as it took an
$83mn after-tax charge to reflect adverse development on asbestos
and environmental pollution (AEP) exposures on the portfolio
transferred to Berkshire Hathaway in 2010.
Operating profits dropped from $225mn in the prior-year period
to $91mn and at $0.34 a share were well below Wall Street
analysts' consensus forecasts of $0.65 a share.
Operating income in the insurer's ongoing P&C operations
was down by less, from $264mn to $