Chicago-based insurer CNA has announced a net income for the third quarter of $256 million, having registered $213 million in the prior year quarter.
Core income for the quarter was $237 million, also up from the $193 million achieved in the prior year quarter.
The Property & Casualty segment produced core income of $217 million, a decrease of $19 million driven by higher net catastrophe losses and lower net investment income, partially offset by improved non-cat current accident year underwriting results
The P&C combined ratio was 100.0% compared with 100.9% in the prior year quarter, including 9.2 points of cat loss compared with 8.7 points in the prior year quarter.
Net cat losses rose to $178 million pretax versus $160 million in the prior year quarter; net cat losses in the current quarter include $114 million for Hurricane Ida.
The group’s underlying combined ratio was 91.1%, record low for the third consecutive quarter that compares to 92.6% in the prior year quarter.
The underlying loss ratio was 60.2% compared with 60.5% in the prior year quarter and the expense ratio was 30.7% compared with 31.8% in the prior year quarter.
Net investment income of $513 million pretax compared with $517 million in the prior year quarter.
CNA’s Commercial segment saw its combined ratio improve 1.2 points to 111.6%, while the expense ratio improved 1.9 points to 30.4%, driven primarily by net earned premium growth of 4% and lower acquisition costs.
“Our third quarter results were very strong, with core income increasing by 23% despite the elevated catastrophe losses,” said Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.
“Additionally, earned rate increase in the quarter was 11%, substantially above long-run loss cost trends, and we continue to achieve strong written rate increases which were 8% in the quarter.
“We also recorded solid investment income and favorable life and group results. We are well positioned to increasingly capitalise on the favourable market conditions we anticipate into 2022.”
