Solid investment gains helped CNA Financial Inc. post third-quarter net income of $3 million, up from a loss of $27 million in the same period last year.
The Chicago-based carrier's $42 million net realized investment gains, compared to a loss of the same figure in the third quarter of 2004, helped make up for the impact of a $294 million after-tax Hurricane Katrina loss.
CNA attributed the investment gains primarily to favorable results in derivative securities.
The company reported a 93.5 combined ratio, excluding catastrophe losses, which added 26.4 points to the figure.
Specialty lines reported the best performance, with third-quarter operating profits of $72 million, compared with a loss of $97 million in standard lines.
Net written premiums for the third quarter were flat as compared with the same period in 2004. Standard lines improved retention to 78 percent, while average rates decreased 2 percent during the quarter.
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