CNA income jumps on lower cat losses, tax rate

CNA Financial Corp. on Monday reported third-quarter 2018 net income of $336 million, more than double the $144 million in third-quarter 2017 as results in 2018 benefited from the reduction of the U.S. federal tax rate from 35% to 21% and lower catastrophe losses, the insurer said in its earnings statement.

Property/casualty operations had net written premium of $1.58 billion almost flat from $1.59 billion in Q3 2017, while the unit’s combined ratio for the third quarter was 94.2% compared with 103.7% in the third quarter of 2017, the statement said.

Net catastrophe losses were $46 million in the quarter compared with $269 million for the prior year quarter, the statement said.

Specialty operations had net written premiums of $688 million, off 1.0% from $695.0 million in third-quarter 2017. The unit’s combined ratio worsened to 87.0% from 83.1% a year ago.

Commercial operations had net written premium of $697 million, even from last year’s $697 million. The combined ratio improved to 97.4% from $115.9% in the year ago period as net catastrophe losses dropped to $25 million for the third quarter of 2018 from $176 million for the prior year quarter, the statement said.

Net investment income, after tax, was $400 million for the third quarter of 2018, off 5.5% from $422 million in the year ago period, the statement said.

"I am pleased with the third quarter's strong core income of $1.17 per share, our best quarterly result since 2010,” Dino E. Robusto, chairman and chief executive officer of CNA Financial Corp., said in the statement. “While our P&C business continues to perform well with a combined ratio of 94.2% for the quarter and 93.7% year-to-date, I am equally pleased that the results of our long-term care gross premium valuation resulted in a GAAP margin of $182 million.”