CNA profit up slightly in first quarter

CNA Financial Corp. on Monday reported first-quarter net income of $297 million, up 0.7% from the prior-year quarter.

“In the first quarter, CNA produced very strong results with excellent profitability and double-digit, top-line growth from significant new business success, continued high retention, and a rebound in rate change from the fourth quarter of last year,” Chairman and CEO Dino Robusto said in a conference call with analysts.

The insurer’s combined ratio deteriorated to 93.9% from 91.9% in the prior-year quarter, a drop largely attributed to higher catastrophe losses. 

Property/casualty net written premiums were $2.25 billion, an 11% increase from the prior-year quarter.

And net investment income of $525 million represented a 17% increase over the prior-year quarter.

Workers compensation pricing continued to be “slightly negative,” Mr. Robusto said, but otherwise general rates were up 9% and renewal premium change was up 11%, which, he said, “continues to be well above long-run, loss-cost trends.”

Mr. Robusto said new business was up 12% to $503 million and strong across all areas.

“We anticipate quality new business opportunities to persist,” he said.

Chief Financial Officer Scott Lindquist said the property/casualty segment had record pre-tax, underlying underwriting income of $197 million, a 19% increase from the prior quarter, which was partially offset by higher pre-tax catastrophe losses and unfavorable prior period development.