CNA Financial announced yesterday its third quarter results, revealing a net income of US$343 million, (US$1.26 per share) and a net operating income of US$311 million (US$1.15 per share).
The company’s Property & Casualty (P&C) operations combined ratio for the third quarter this year was 90.4%.
“CNA had a strong quarter highlighted by a P&C combined ratio of 90.4%, reflecting our steady underwriting performance and continued favorable reserve development,” commented CNA Financial Corporation chairman and CEO Thomas F. Motamed. “Our disciplined actions have sustained an underlying loss ratio in line with where we ended 2015, despite challenging market conditions.”
The P&C unit’s net operating income was US$329 million for the third quarter of 2016. In the same period last year, the figure stood at US$263 million. A release suggests that the improvement was likely due to higher net investment income from improved limited partnership returns.
CNA’s catastrophe losses were at US$11 million after tax, compared to US$10 million in the prior year quarter. The company’s release noted that most of the catastrophe losses could be attributed to severe weather events in the US.
For its specialty business, CNA reported that it its net operating income increased by US$16 million for the third quarter of 2016 compared to the prior year quarter.
CNA’s commercial business posted a year-over-year net operating income increase of US$39 million for the third quarter of 2016.
For its international segment, CNA posted a net operating income increase of US$11 million for this year’s third quarter over the same period last year.
The company’s net operating results for its non-core segments improved US$35 million from the same period last year, primarily due to CNA’s results in its long term care business.
Net investment income after tax was US$371 million for the third quarter this year versus US$265 million during the third quarter of 2015. This increase, according to the company, was driven by limited partnerships which returned 2.6%, as compared to the 3.2% in the prior year quarter.
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