Chicago-based insurer CNA reported its net income rose by $146 million, thanks to increases in net investment and lower catastrophe losses.
The company reported third-quarter net income of $221 million compared to $75 million for the same period last year. The company's combined ratio for its P&C business stood at 99.7, an increase of 0.6 points.
Net income for the nine months of this year stands at $637 million compared to $419 million last year. The combined ratio for the nine months was 101.1 down 1.2 points from 2011.
"We are pleased to report our third-quarter results which include a much improved level of earnings and a continuation of favorable rate and retention trends in our core P&C business," says Thomas F. Motamed, chairman and CEO of CNA Financial Corp. "Our third-quarter results reflect the favorable impact of the addition of the newly acquired Hardy group. Hardy's combined ratio was 85.8 percent with net earned premium of $64 million."
CNA acquired Hardy, a specialized Lloyd's of London underwriter, in July. The carrier primarily writes short-tail exposures in marine and aviation, non-marine property, specialty lines and property treaty reinsurance.
The company says its specialty business saw net premiums decrease $27 million in the quarter primarily due to "lower new business levels in certain lines, partially offset by rate achievement."
In its commercial business, net premiums were down $25 million, or 3 percent, but the segment managed rate increases that averaged 8 percent; net income for the segment increased by $94 million.
Third-quarter catastrophe losses were $18 million after-tax compared to $32 million for the same period in 2011.
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