CNA Financial has released its results for the third quarter of 2019, reporting a 68% slump in net income due to weak earnings across multiple lines.
The company recorded net income of $107 million in Q3 2019, compared with $336 million for the same period last year.
Looking at the first nine months of the year, earnings were similarly down 18% down from $868 million in 2018 to $714 million this year.
Core income for P&C business specifically was $241 million in Q3, versus $305 million last year, and the segment’s combined ratio weakened from 94.2% to 97.6%.
The loss ratio for the quarter was 64.7%, comprising 1.8 percentage points due to catastrophe losses, while the expense ratio was 32.5%.
CNA Financial incurred $32 million of catastrophe losses in Q3 this year, down from $46 million in the third quarter of 2018.
For the first nine months of the year, CNA Financial’s P&C segment recorded core income of $853 million, versus $951 million in 2018, with a combined ratio of 97.1%, compared with 93.7% previously.
P&C gross written premiums increased by 8% for the quarter and by 4% for the nine month period.
CNA Financial also saw a 14% downturn in core income for its specialty business this quarter, a 24% decline for commercial, as well as a $9 million loss for its international segment, a $122 million loss for life & group, and a $17 million loss for corporate & other.
The company noted that its life & group result included a $170 million after-tax charge related to an active life reserve premium deficiency and a $44 million after-tax reduction in claim reserves.
CNA Financial’s net investment income, after-tax, came out at $399 million for the quarter, roughly in line with the $400 million reported last year.
“Our third quarter results reflect the ongoing strength of our P&C business, which delivered an underlying combined ratio of 94.6%, net written premium growth of 8% and rate increases of 6%,” said Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.
“In addition, the changes made to our Long Term Care assumptions as a part of our annual reserve review reflect our continued prudent management of this runoff portfolio,” he added.