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.
Today’s top stories
Insurtech funding volume drops 64% YOY in Q1
AXA transfers £600M liability book to RiverStone
Willis Towers Watson appoints regional corporate risk and broking leader in US
Aon closes $4.3bn business sale to Blackstone
Munich Re boosts North America leadership with new presidents and CEOs
Liberty Mutual completes $2.9bn Ironshore deal
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze