Chicago-based insurer CNA Financial Corporation has reported a net income of $205 million for the second quarter of 2022, after falling from $368 million from the prior year period.
Core income for the quarter was $245 million, compared to $341 million from the prior year quarter.
At the same time, net investment losses for the quarter were $40 million, which CNA noted was primarily driven by mark to market losses on non-redeemable preferred stock, compared to net investment gains of $27 million in the prior year quarter.
CNA’s property & casualty (P&C) segments produced core income of $317 million for Q2 22, a decrease of $34 million compared to Q2 21. This reflected lower investment income from LPs and common stock, partially offset by pre-tax underwriting income of $185 million, up 64%, and higher income from fixed income securities.
Moreover, CNA’s P&C segments, excluding third party captives, generated gross written premium (GWP) growth of 17% and net written premium (NWP) growth of 20%. Excluding the one-time catch-up related to the addition of a property quota share reinsurance treaty in the prior period, net written premiums grew 13%.
P&C combined ratio was 91.0% for Q2 22, the company’s lowest in five years, compared to 94.0% from Q2 21.
Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation, commented: “Core income of $245 million was down 28% this quarter due to a $171 million decline from LPs and common stock. Income from fixed income investments was up $16 million this quarter to $451 million and P&C underwriting gain was up 64%, reflecting higher underlying underwriting income, lower cats, and favorable prior period development.
The underlying combined ratio of 90.8% is our lowest on record. And I am very pleased with our top-line P&C gross written premium growth ex captives of 17% in the quarter. This was driven by our strongest retention in nearly five years and very strong new business growth.
“Written rate change moderated only slightly this quarter to 6%, and Commercial rates have remained relatively stable at about 5%, moderating only one point from the third quarter of 2021, while earned rate of 8% remains above loss cost trends.
“We had fantastic P&C performance across the board in the second quarter, and we remain optimistic about the market conditions and our growth opportunities for the remainder of the year.”
