CNA Q1 results jump on underwriting gains and investment returns
Chicago-based commercial and property/casualty (P/C) insurer CNA Financial Corporation boosted results in the first quarter of 2017 pushed by the P/C unit and driven by investment returns and lower underwriting expenses.
CNA recorded net income of $260 million in the first quarter of 2017 compared to $66 million in the same period of 2016.
Net investment income, after tax, increased to $389 million as compared with $315 million in the prior year quarter.
P/C operations' net operating income was $268 million for the first quarter of 2017 as compared with $207 million in the prior year quarter. This increase was primarily due to higher net investment income and lower underwriting expenses partially offset by unfavourable premium development, the company said in a statement. The combined ratio in P/C for the first quarter was 97.2 percent compared to 96.1 percent a year earlier.
"Given our focus on underwriting performance and expense discipline, I am pleased that each of our P&C segments produced underlying adjusted combined ratios equal to or better than last year's first quarter," said Dino Robusto, chairman and CEO of CNA. "Our net operating income of $235 million included favourable prior year loss reserve development from each of our P&C segments and a lower expense base than a year ago."
Net income in the commercial operations rose to $102 million in the first quarter compared to $64.2 million in the same period a year ago. At the same time, the combined ratio deteriorated to 104.9 percent from 101.9 percent due to unfavourable premium development, according to a statement. Net written premiums in the commercial unit dropped to $715 million from $748 million a year ago.
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