Blaming investment losses and lower operating income, CNA Financial Corp. reported first-quarter net income decreased 37 percent to $109 million compared with $296 million for the period last year.
The company said its net operating income, reported at $221 million compared to $307 million in 2007, was impacted by lower net investment income, decreased current accident-year underwriting results in property-casualty operations and increased catastrophe losses.
CNA reported that pretax net investment income decreased by $174 million compared to the first quarter of 2007, driven mainly by a $91 million decline in limited partnership results and “an $80 million unfavorable change in trading portfolio results,” which was “largely offset by a corresponding decrease in the policyholders' funds reserves supported by the trading portfolio.”
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