Chicago-headquartered commercial property and casualty (P&C) insurance group CNA Financial has published its third-quarter financial results, which chair and chief executive Dino Robusto considers “very strong”.
According to the major US insurer, which is also present in Canada and Europe, its net income for the period amounted to US$256 million (approx. £187.66 million). The figure represents an increase from 2020’s US$213 million (approx. £156.19 million). Core income, meanwhile, stood at US$237 million – also higher than the US$193 million core income posted in the same quarter last year.
CNA’s core income or loss is calculated by excluding from net income or loss the after-tax effects of net investment gains or losses and any cumulative effects of changes in accounting guidance. The company explained that the calculation excludes net investment gains or losses because these are generally driven by economic factors that are not necessarily reflective of operations.
It was also noted that the management at CNA monitors core income or loss for each business unit to assess segment performance. Here’s how the group fared in terms of core income or loss:
|
Segment |
Q3 2021 core income / (loss) |
Q3 2020 core income / (loss) |
|
Specialty (part of P&C) |
US$173 million |
US$168 million |
|
Commercial (part of P&C) |
US$27 million |
US$41 million |
|
International (part of P&C) |
US$17 million |
US$27 million |
|
Life & group |
US$41 million |
US$(35 million) |
|
Corporate & other |
US$(21 million) |
US$(8 million) |
"Our third-quarter results were very strong, with core income increasing by 23% despite the elevated catastrophe losses,” noted Robusto, whose camp reported net catastrophe losses of US$178 million. “Our results were highlighted by the third consecutive quarter of record underlying combined ratio of 91.1%, double-digit gross written premium growth across all of our P&C business segments and excellent new business growth of 24%.
“Additionally, earned rate increase in the quarter was 11%, substantially above long-run loss cost trends, and we continue to achieve strong written rate increases which were 8% in the quarter. We also recorded solid investment income and favourable life and group results. We are well-positioned to increasingly capitalise on the favourable market conditions we anticipate into 2022.”
Meanwhile, CNA declared a quarterly dividend of US$0.38 per share payable a month from now.
