CNA Financial Corp. says second-quarter net income increasednearly 17 percent to $194 million compared to $166 million duringthe same period a year ago.

P&C net operating income in the second quarter jumped to$258 million from $163 million a year ago as net written premiumsgrew 7 percent to about $1.72 billion compared to last year.Increased rates in CNA Specialty and CNA Commercial, as well as theacquisition of Hardy favorably impacted NPW.

Rates increased an average of 7 percent during the secondquarter in CNA Specialty. In CNA Commercial, second-quarter averagerate increases were 9 percent. Second quarter operating incomeincreased nearly 40 percent to $148 million in CNA Specialty andabout 96 percent to $112 million in CNA Commercial.

Results were aided by a $30 million settlement benefit relatedto workers' compensation residual market litigation, better netinvestment income and improved accident-year underwriting results,says the Chicago-based insurer.

The insurer's total combined ratio during the second quarter was101.5 compared to 101.7 a year ago during the same time. Theunderlying combined ratio was 97.6 compared to 101.2 during 2012'ssecond quarter.