CNA Financial Corporation reported a second-quarter net income decline of nearly 25 percent, driven in part by poor investment results.

The Chicago-based carrier reported net income of $239 million, compared with $272 million for the same year-ago period.

The company noted that the 2005 figure included a $115 million benefit related to a federal income tax settlement and a $36 million loss resulting from a reinsurance commutation.

"CNA continues to demonstrate consistently improving financial performance," said Stephen W. Lilienthal, chairman and chief executive officer of CNA Financial Corporation.

He also cited customer retention, disciplined underwriting and aggressive expense management as hallmarks of the period.

The company posted a combined ratio of 95.2 for the core property-casualty unit--the lowest figure for this division since it was formed in 2001, Mr. Lilienthal noted.

Income from continuing operations, which excludes investment gains and losses, was $241 million.

Property-casualty net written premiums rose to $1.79 billion from $1.71 billion in the comparable year-ago period.

The company posted net realized investment losses of $64 million for the quarter, compared with gains of $16 million for the 2005 period. The company attributed the swing to sales of fixed maturity securities at a loss and a modest increase in impairment losses.

Special Reports /

CNA Investments Drop Quarterly Net 25%

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