US commercial property and casualty insurer CNA has posted a net income of $151 million for the second quarter, down from $278 million in the prior year quarter.
Core income stood at $99 million, down from $294 in Q2 2019.
Th combined ratio of the company’s property & casualty operations for the second quarter was 112.3%, compared to 95.7% in the prior year quarter.
Underwriting results for the second quarter include previously announced net catastrophe losses of $301 million pretax, including $182 million related to COVID-19, $61 million related to civil unrest and $58 million related primarily to severe weather related events.
The underlying combined ratio of 93.4% reflects a 0.4 point net benefit related to COVID-19 from lower loss frequency as a result of shelter in place restrictions and an adverse impact from a reduction in estimated audit premiums.
These items decreased the loss ratio by 0.9 points and increased the expense ratio by 0.5 points.
The US P&C segments, excluding third party captives, generated gross written premium growth of 8% and net written premium growth of 4%.
Excluding third party captives, gross written premiums grew 7% and net written premiums grew 3% for P&C overall.
CNA’s Life & Group produced a profit of $14 million, while Corporate & Other segments resulted in a loss of $11 million.
Pretax net investment income increased $19 million as compared with the prior year quarter.
The increase was driven by limited partnership and common stock investments, which returned 5.0%, or $84 million in the second quarter of 2020 compared with 2.1%, or $43 million, in the prior year quarter.
“Notwithstanding our second quarter results being impacted by considerable catastrophe losses from COVID-19 as well as civil unrest and weather related events, our underlying combined ratio improved year over year,” said Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.
“As well, we benefited from accelerating P&C rate momentum and stable new business despite the economic disruption.”
