CNA Financial Corp. announced that its principal operating subsidiary, Continental Casualty Co., entered into an agreement through which Cavello Bay Reinsurance Ltd. will reinsure a legacy portfolio of excess workers’ compensation policies.

CNA said it will cede to Cavello about $690 million of net excess work comp liabilities relating to business written in 2007 and earlier under a retroactive insurance agreement. The aggregate limit for the agreement is $1 billion.

CNA said it expects to close the deal in the first quarter of 2021.

CNA is a property-casualty insurance company providing standard and specialized coverage and services in the U.S., Canada and Europe.