Chicago-based insurer CNA Financial Corporation has reported consistent net income of $313 million for the first quarter of Q1, as income rose across its Property & Casualty (P&C) operations, but fell across Life & Group and Corporate & Other segments.
Core income for the quarter was $316 million, versus $263 million in the prior year quarter, with net investment losses of $3 million, versus net investment gains of $49 million previously.
For P&C business, core income rose by $58 million, or 22%, to $321 million due to lower catastrophe losses and improved non-catastrophe current accident year underwriting results.
This was partially offset by lower net investment income driven by limited partnership and common stock returns.
P&C segments, excluding third party captives, generated gross written premium growth of 8% and net written premium growth of 4%, driven by written rate of +7% for the quarter and new business growth of 14%.
The combined ratio reported by CNA Financial was 91.9% for Q1 2022, representing a significant improvement on the 98.1% it reported for the same period last year.
In contrast, the Life & Group segment produced income of $23 million in Q1, down from $36 million previously, and the Corporate & Other segment recorded a core loss of $28 million.
Net investment income slid from $504 million last year to $448 million this year.
“We are off to a good start in 2022 with a 20% increase in core income resulting from improved underlying P&C underwriting income and lower catastrophe losses,” said Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.
“Our combined ratio of 91.9% was the lowest quarterly combined ratio in over five years. Gross written premium growth ex captives was 8% in the quarter. Earned rate increase of 9% remains comfortably above loss cost trends and a positive gap should persist through year-end as written rate increases, which were 7% in the quarter, are moderating at a measured pace and remain robust where needed most,” Robusto continued.
“With significant rate achievement over the last several years and improved terms and conditions, we remain optimistic about the market conditions and our growth opportunities for the remainder of 2022.”
