Citing “intensively competitive” conditions among property and casualty insurers, CNA Financial Corp. on Wednesday reported lower profits from its insurance operations in the third quarter and first nine months of the year.
The Chicago-based insurance holding company, which is 84 percent owned by Loews Corp., said net income rose 15 percent, to $274 million, or $4.41 per share, from $239 million, or $3.83 per share, a year earlier.
Excluding net gains from investments, earnings fell 25 percent, to $121 million, or $1.93 per share, from $161 million, or $2.57 per share. Consolidated revenues edged up 1 percent, to $4.31 billion from $4.26 billion.
Chief executive Dennis H. Chookaszian said CNA’s earnings were affected by “a prolonged soft market” and competition in the property-casualty field.
The drop in insurance profits was softened by a jump in net investment income to $153 million from $78 million in last year’s third quarter.
CNA’s net income in the first nine months of the year fell 11 percent, to $687 million, or $11.04 per share, from $770 million, or $12.38 per share, the year before. Profits before investment gains dropped 16 percent, to $383 million, or $6.12 per share, from $458 million, or $7.33 per share. Consolidated revenues rose less than 1 percent, to $12.68 billion from $12.67 billion.
The company realized a net investment gain of $89 million in the third quarter from a merger of CNA’s surety business and that of Capsure Holdings Corp., which was completed Sept. 30. CNA has a 62 percent interest in the new publicly traded firm, called CNA Surety Corp.
CNA Surety reported underwriting income of $10.3 million on net written premiums for the third quarter, down 23 percent from $13.5 million in the same period last year. Net written premiums rose 8.5 percent, to $39.9 million from $36.7 million.
Underwriting income for the nine-month period rose 110 percent, to $60.4 million from $28.7 million. Net written premiums rose 2.2 percent, to $108.6 million from $106.3 million.
