NU Online News Service, Feb. 6, 3:10 p.m.EST

Chicago-based insurer CNA says 2011 fourth-quarter net incomedropped 37 percent on the combination of lower net-investmentincome, catastrophe losses and reserve charges in its lifebusiness.

The company says fourth-quarter net income was $190 million,down $112 million from the 2010 fourth quarter.

Property and casualty net written premiums increased 3 percent,or $46 million, to $1.5 billion. The combined ratio for the companyimproved 2.4 points to 87.2.

For the year, the company says net income dropped 11 percent, or$76 million, to $614 million. P&C net written premiumsincreased 5 percent or $323 million to $6.22 billion. The combinedratio rose 3.6 points to 98.4.

During the fourth quarter, CNA experienced catastrophe losses of$11 million, compared to $14 million in 2010. For the year,catastrophe losses in 2011 stood at $144 million compared to $79million the previous year.

The company increased insurance reserves in its life segment by$148 million for its annuity and long term care business.

Discussing the results during a financial analyst's conferencecall, Thomas F. Motamed, chairman and chief executive officer ofCNA, says the company saw improved underwriting profitability inP&C commercial and specialty business. He adds that the companyis pleased that the “market is accepting rate increases after along period of rate decreases,” and notes that the company willcontinue to “focus on the fundamentals.”

“We are only writing business at the right price the first timeto bring it in the door and then we are constantly looking to pushrate once it's in the door,” says Motamed.