CNA Profit Triples For 2003 Fourth Quarter
NU Online News Service, Feb. 13, 4:32 p.m. EST?CNA Financial Corp., the Chicago-based insurance arm of Loews Corp., reported that its 2003 fourth-quarter profit more than tripled on a year-over-year basis to $174 million from $50 million for the 2002 fourth quarter, boosted by higher premiums in property-casualty units.[@@]
"The increase in fourth quarter of 2003 results over the prior period is primarily due to strong results in property-casualty operations," the insurer stated. "Rate increases, solid production of new business, continued underwriting discipline and a focus on expense management all contributed to the 99.1 percent combined ratio for property-casualty operations in the fourth quarter of 2003."
Net written premiums for total p-c segments were $1.76 billion for the 2003 fourth quarter, up from $1.60 billion one year ago.
However, for the full-year 2003, CNA reported a net loss of $1.43 billion, compared to net profit of $155 million for the full-year 2002.
The company noted that the decreased net results for 2003 over 2002 were mainly a result of unfavorable net prior year development of $1.849 billion after-tax, as well as an increase in bad-debt reserves for insurance and reinsurance receivables of $396 million after-tax.
Net written premiums for total p-c segments for the year 2003 came in at $7.09 billion, improving slightly from $7.01 billion reported for 2002.
Commenting on CNA's reserve charges during the past year, Chief Executive Stephen Lilienthal said that, "Despite the actions that were taken in 2003 to strengthen the balance sheet, CNA's property and casualty operations have finished the year with solid accident year results driven by strong support from our distribution network, solid rate increases and excellence in underwriting and claims."
CNA has been taking steps to focus on its core commercial, p-c operations. The company last week agreed to sell its individual life business to Swiss Re for $690 million. And in January, it sold its group benefits business to Hartford Financial Services Group Inc. for around $500 million.
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