CNA profit falls on cat losses, lower investments, liability charge

CNA Financial Corp. on Monday reported net income of $266 million for the fourth quarter of 2021, down 31.3% compared with the year-earlier period, as the insurer’s investments fell and it reported a $48 million charge related to asbestos and pollution liabilities.

CNA, which saw net investment gains drop to $1 million from $52 million in the fourth quarter of 2020, reported catastrophe losses of $40 million, compared with $14 million in the prior-year quarter.

Favorable noncatastrophe results, though, offset the cat losses leading to an improved combined ratio of 92.9% for the quarter, compared with 93.4% a year earlier.

In its core property/casualty business, CNA reported net written premium of $2.16 billion, up 11% from the prior-year period.

For the full year, CNA reported net income of $1.2 billion, up 74.2% from 2020, as catastrophe losses fell and investment gains increased. The insurer reported a 2021 combined ratio of 96.2%, compared with 100.1% for 2020, and property/casualty net written premium of $7.92 billion, up 4.7%.