NU Online News Service, Aug. 1, 2:41 p.m. EDT
Chicago-based insurer CNA says net income for the 2011 second quarter dropped 55 percent, primarily on catastrophe losses.
Net income for the second quarter fell by $157 million to $126 million. Property and casualty net premium written rose 5 percent, or $78 million, to $1.6 billion. Total P&C combined ratio for the period increased 16.2 points to 105.7.
For the 2011 first half, net income dropped 34 percent, or $179 million, to $349 million.
CNA says it experienced second-quarter catastrophe losses of $65 million after tax, compared to $31 million after tax for the same period last year.
The company says premium rates grew in its specialty and commercial business by more than 5 percent.
"We are delighted with the positive premium growth in our specialty and commercial business today," Thomas F. Motamed, chairman and CEO of CNA, says during a conference call with financial analysts today. "This is the first quarter in which we have had positive growth in specialty and commercial since the fourth quarter of 2006."
CNA attributes its increase in premium in specialty and commercial to new business.
"All in all, the second quarter was marked by continued improvement in our ability to serve customers and increase shareholder value," says Motamed. "The highlights were: premium growth in both our specialty and commercial businesses, with strong submission activity and new business; positive momentum on rates, with an improving rate trend on specialty and continued rate increases in commercial; improving loss ratios in commercial; continued discipline in our approach to cat management; and completion of the acquisition in the minority share in CNA surety."
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