CNA Quarterly Profit Up Sharply
NU Online News Service, May 8, 12:29 p.m. EDT? CNA Financial Corporation reported first-quarter net profit increased four-fold to $83 million, or 30 cents per share, thanks to strong premium rate increases and production of new business.
In the corresponding quarter in 2002, the Chicago-based insurer recorded a net income of $20 million, or 9 cents per share.
The company also pointed out a five-point improvement in the current net accident year loss ratio for its primary property-casualty businesses.
On the year-over-year basis, CNA's p-c net written premiums increased to $1.97 billion from $1.79 billion one year ago. And the company's CNA Re, which operates as a reinsurer in the broker market for treaty products and in the direct market for specific risk facultative products, posted a $38 million increase for its net written premiums.
Some of these improvements, though, were hampered by unfavorable prior year net reserve development as well as decreased operating results for its life operations, the company said.
Stephen W. Lilienthal, chairman and chief executive officer at CNA, said, "Our property and casualty segments, including CNA Re, came through with top-line growth, a good flow of new business and improved loss ratios."
CNA is the country's fourth-largest commercial insurance writer and the 11th-largest p-c company. Its insurance products include standard commercial lines, specialty lines, surety, reinsurance and marine, as well as other p-c coverage.
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