CNA Financial has reported net income of $387 million for the fourth-quarter of 2020 and record core income of $335 million for the period, aided in part by an improved property & casualty (P&C) performance as catastrophe losses fell.
Net income climbed $114 million from Q4 2019, while core income increased from the prior year quarter by $70 million.
During the quarter, CNA’s P&C unit recorded a $32 million increase in core income to $369 million, driven primarily by improved current accident year underwriting results.
The P&C combined ratio ended the fourth-quarter of 2020 at 93.5% compared with 95.6% in the prior year quarter, including a 0.8 percentage point impact from catastrophe losses. All in all, catastrophe losses amounted to $14 million in Q4 2020 against $51 million in Q4 2019.
Additionally, the firm has announced no change to its COVID-19 catastrophe loss estimate for the period.
CNA’s P&C units, excluding third party captives, produced gross written premiums expansion of 15% and net written premium growth of 12%, from rate of 12%+ and new business growth of 17%, in the quarter.
At $555 million, the company’s net investment income increased slightly in Q4 2020 from the $545 million reported a year earlier.
“CNA produced record core income in the fourth quarter as we continued to leverage the hardening market conditions achieving 12% in rate increases and 12% growth in net written premium as well as improving both our underlying and total combined ratios by over two points. We are well positioned to extend our strong execution in the favorable market conditions that we expect to continue in 2021,” said Dino Robusto, Chairman and Chief Executive Officer (CEO) of CNA.
For the full-year, net income fell to $690 million from the $1 billion posted in 2019; while core income declined from $979 million to end 2020 at $735 million.
The P&C combined ratio for the year was 100.9% against 96.7% a year earlier. For 2020, this includes a 7.7 percentage point impact from catastrophe losses, which for the year, amounted to $550 million, against $179 million in 2019.
CNA’s P&C units, excluding third party captives, produced gross written premium growth of 9% and net written premium growth of 6% in 2020, driven by higher rate and new business.
Net investment income also fell in 2020, year-on-year, to $1.935 billion against $2.118 billion.