CNA announces 'best quarterly result since 2010'

CEO very 'pleased' with firm’s progress

CNA announces 'best quarterly result since 2010'

Insurance News

By Bethan Moorcraft

CNA Financial Corporation has today announced third quarter (Q3) 2018 net income of $336 million and core income of $317 million, or $1.17 per share. These results show significant improvement from catastrophe-laden Q3 2017, where the insurer achieved net income of $144 million and core income of $159 million.

Net income for the nine months leading up to September 30, 2018, was $868 million (up from $633 million last year), with a property & casualty operations combined ratio of 93.7%, compared with 98.2% in the first nine months of 2017.  

The firm’s P&C operations net written premiums decreased by 1% compared to the prior year quarter, but overall since January 01, 2018, net written premiums grew by 5% compared to last year. Net investment income, after tax, was $1,221 million for the nine months ending September 30, 2018.

“I’m pleased with the third quarter's strong core income of $1.17 per share, our best quarterly result since 2010,” commented Dino E. Robusto, chairman and chief executive officer of CNA Financial Corporation. “While our P&C business continues to perform well with a combined ratio of 94.2% for the quarter and 93.7% year-to-date.”

Like many insurers, CNA took a hard hit in Q3 of 2017 due to the string of natural catastrophes - notably hurricanes Harvey, Irma and Maria, and the California wildfires – which caused devastating losses in North America.

The firm’s combined ratio increased by 3.9% for Q3 2018 compared with the prior year quarter. Net catastrophe losses for the third quarter of this year were $16 million, or 2.4% of the loss ratio, as compared to $35 million, or 5% of the loss ratio, for the prior year quarter. A company release states: “Favorable net prior year development improved the loss ratio by 7.7 points in the quarter as compared with a 14.5 point improvement in the prior year quarter. For the year-to-date period, the combined ratio improved 1.7 points.”


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