Chicago-based insurer CNA Financial Corp. reported second-quarter net income fell 17 percent compared to the same period last year on a combination of increased losses, lower investment income and soft market pressures, management said.
The company reported net income fell in the quarter $36 million to $181 million or 67 cents a share, off 13 cents from the same period last year. Revenues were off $148 million, or 6 percent, to $2.3 billion.
For the first six months, net income is off 28 percent, or $145 million, to $368 million, or down 53 cents a share to $1.36. Revenues dropped $383 million, or 8 percent, to $4.6 billion.
During an investor analyst's conference call, Stephen W. Lilienthal, chairman and chief executive officer, said of the results: "We remain committed to underwriting discipline. Retention of existing profitable business is a priority [and] has provided better margin than reckless pursuit of new business."
He said the company is retaining about 80 percent of accounts and is working to keep a diversified book. The results, he said, provided a solid second quarter and the copmany is "well positioned to weather the storms in the insurance and financial markets, not to mention those of a meteorological variety."
The company's property-casualty business reported a combined ratio of 97.7, a three-point deterioration from the same quarter last year, and 97.9 for the first six months, also a three-point increase from the same period last year.
Mr. Lilienthal commended the results, noting that this made 10 consecutive quarters with a combined ratio below one hundred–the break even point for profitability.
"We are executing well on all fronts and in position to continue with profitable growth," he said.
CNA reported catastrophe losses in the quarter of $47 million, compared to $12 million for the pervious period. Net written premiums dropped $65 million to $1.7 billion, and net investment income fell $43 million to $354 million.
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