CNA closes strong year in 2019 results

Nonetheless, there were a few low points in the figures

CNA closes strong year in 2019 results

Insurance News

By Alicja Grzadkowska

CNA Financial has joined the list of insurance companies reporting their financial results. For its fourth quarter of 2019, CNA reported a net income of US$273 million (around SG$379 million), bringing its full-year total to US$1 billion (around SG$1.38 million).

Its Q4 combined ratio for property and casualty operations was 95.6%, and 94.8% for the full-year, versus 95.4% for 2018. CNA also saw its net written premium for P&C grow by 5% in both Q4 and the full-year. Net catastrophe losses were US$51 million or 2.9 points of the loss ratio in the quarter, compared with US$146 million or 8.6 points of the loss ratio for Q4 2018.

Gross written premiums likewise increased in CNA’s specialty segment, from US$705 million in 2018 to US$752 million in 2019, and in its commercial unit, from US$784 million to US$867 million year-over-year. Its international division saw growth in net written premiums as well, albeit on a smaller scale, from US$256 million to US$262 million. However, the unit went from a US$36 million core income loss in 2018 to a US$16 million gain.

However, there were some low points in the results. CNA’s Life & Group and Corporate & Other segments saw losses in the latest fourth quarter of US$4 million and US$68 million respectively, thanks to a US$48 million after-tax non-economic charge related to asbestos and environmental pollution for the latter number, according to the results.

“Our fourth quarter results reflect a strong underwriting quarter in line with a strong underwriting year in which our underlying combined ratio improved for the third consecutive year to 94.9%,” said Dino E. Robusto, chairman and chief executive officer of CNA Financial Corporation. “With fourth quarter premium rates increasing to 7% and gross premiums increasing to 8%, CNA is well positioned going into 2020.”

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