Chicago-based insurer CNA Financial Corporation has reported a 49% increase in net income, to $283 million, for the second quarter of 2023, which compares with $190 million reported in the prior year quarter.
Core income for the quarter was $374 million, versus $317 million in the prior year quarter, which according to CNA, reflects higher investment income and record high pretax underlying underwriting income, partially offset by higher catastrophe losses and lower favourable net prior year development.
While Net investment losses for the quarter were $25 million, compared to $40 million in the prior year quarter, Net investment income was up 33% to $575 million. Corporate & Other core loss of $46 million versus $78 million in the prior year quarter.
For Property & Casualty (P&C) business, core income was $374 million for Q2 2023, an increase of $57 million compared to the same period last year.
This growth was driven by higher investment income and record high pretax underlying underwriting income, partially offset by higher catastrophe losses and lower favourable net prior year development, CNA explained.
P&C segments, excluding third party captives, generated gross written premium growth of 12% and net written premium growth of 9% for the second quarter of 2023 driven by renewal premium change of +7%, including rate of +5%, exposure change of +2% and new business growth of 11%.
Excluding currency fluctuations, gross written premiums grew 12% and net written premiums grew 10%.
Life & Group segment produced a core loss of $20 million for the second quarter of 2023 versus $9 million in the prior year quarter primarily due to long term care policy buyouts.
Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation, said: “We produced strong results in the quarter with double-digit top-line growth and continued excellent profitability. Core income increased by 34% in the quarter and net investment income was up 33% with significant increases in LPs, common stock, and the fixed income portfolio.
“The all-in combined ratio was very strong at 93.8%, with pretax catastrophe losses of $68 million, or 3.1 points of the combined ratio, and 0.4 points of favourable prior period development. The P&C underlying combined ratio of 91.1% generated a record $200 million of pretax P&C underlying underwriting gain.”
He added: “In the quarter, we achieved very strong production performance with 12% growth in gross written premium ex captives and 9% growth in net written premium. Renewal premium change was 7% for P&C overall and 11% in Commercial, which was up 2 points from the first quarter. Retention remained consistently high at 86% and new business was up 11%, similar to the first quarter.
“With the strong top-line and bottom-line results in the first half of the year and improved investment returns, we are optimistic about our opportunities through the remainder of 2023.”
