CHICAGO (AP) — Insurer CNA Financial Corp.'s first-quarter earnings fell nearly nine percent as catastrophic losses outweighed improved investment income and lower expenses in the company's core property and casualty business.
The Chicago-based company reported net income of $223 million, or 83 cent per share, compared with $245 million, or 82 cents per share a year ago.
Analysts surveyed by FactSet expected 70 cents per share.
Shares slipped 28 cents, less than 1 percent, to $30.76, remaining near their 52-week high. They've traded between $23.24 and $31.53 in the past year.
Property and casualty operations, which include specialty and commercial insurance divisions, improved primarily due to higher net investment income and decreased expenses, but they were partially offset by higher catastrophe losses, which were $36 million in the first quarter of 2011 as compared to $26 million after-tax in the first quarter of 2010.
The specialty division, which provides professional management liability insurance coverage, posted net income of $135 million, down from $139 million a year ago, mostly due to lower investment gains which outweighed improved net operating income and higher net written premiums.
At the commercial division, net income rose to $141 million from $112 million, but catastrophic losses reduced the division's profitability and net written premiums declined $1 million. Those factors were offset by higher net investment income, driven by favorable limited partnership income, and decreased expenses.
CNA Financial declared a quarterly dividend of 10 cents per share, payable June 1 to stockholders of record on May 16, the same level paid out in the fourth quarter, when the company resuming such payments for the first time since 2007.
CNA is primarily owned by Loews Corp., a conglomerate led by New York's Tisch family.
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