Chicago-based insurer CNA Financial Corporation has reported a slight increase in net income of $297 million for the first quarter of 2023, compared with $295 million in the prior year quarter.
Core income for the quarter was $325 million, versus $298 million in the prior year quarter, with net investment losses of $28 million, versus $3 million previously.
For Property & Casualty (P&C) business, core income rose by $25 million, or nearly 8%, to $346 million due to higher investment income and record high pretax underlying underwriting income of $197 million, partially offset by higher pretax catastrophe losses and unfavorable prior period development.
P&C segments, excluding third party captives, generated gross written premium growth of 11% and net written premium growth of 12%, driven by written rate of +5% for the quarter and new business growth of +12%.
The combined ratio for P&C was 93.9%, compared with 91.9% in the prior year quarter.
The combined ratio reported by CNA Financial was 90.8% for Q1 2023, representing an improvement on the 91.4% it reported for the same period last year. The underlying loss ratio was 59.8% and the expense ratio was 30.7%.
In contrast, the Life & Group segment recorded a core loss of $3 million in Q1, and the Corporate & Other segment recorded a core loss of $18 million.
Net investment income rose from $448 million last year to $525 million this year.
The insurer declared a quarterly dividend of $0.42 per share, payable on June 1, to stockholders of record on May 15.
“We had a great start to 2023 with strong production results across the business and core income up 9% to $325 million. Net investment income of $525 million increased $77 million over the first quarter of 2022 and our P&C underlying underwriting gain was up 19% to a record $197 million in the quarter,” said Dino E. Robusto, Chairman & CEO of CNA Financial.
“Against a backdrop of yet another significantly elevated industry cat quarter, our pretax catastrophe losses were only $52 million or 2.4 points in the quarter, reflecting our disciplined underwriting of catastrophe exposures.”
“Given the strong start to 2023, the improved pricing in Commercial lines and the tailwind from higher fixed income yields, we are optimistic about our ability to leverage the continued favorable market conditions throughout the remainder of 2023,” Robusto continued.
