Bernard L. Hengesbaugh, chairman and chief executive officer of the CNA insurance companies, said "the underlying performance of the property-casualty business units showed quarter-to-quarter improvement," noting that the first-quarter accident year combined ratio improved 8 points to 104, driven in large part by rate increases in the mid-20 percent range.

By segment, CNA reported a $56 million decline in operating income for standard business, an $8 million drop for specialty lines, and a $23 million improvement for CNA Re.

Explaining the results, CNA attributed the standard lines and specialty lines drops to declines in net investment income. For standard lines, CNA also cited a significantly reduced benefit from reinsurance. Improved underwriting results drove the CNA Re numbers, CNA said.

CNA reported overall net written property-casualty premiums of $1.8 billion, up 18 percent from first-quarter 2001. The specialty segment, representing $546 million of net premiums, showed the largest percentage jump?31 percent above last year's first quarter.

CNA reported that specialty lines achieved strong rate increases of approximately 20 percent and significant production increases, particularly in the architects and engineers, long term care facilities and marine lines of business.