OneBeacon’s third-quarter results disappointed; CNA’s numbers were mixed to positive, though its investment income took a big hit. Here are the details:
OneBeacon Insurance Group saw its third-quarter net losses soar due to underwhelming underwriting results, a tough investment climate and its exit from the crop insurance business.
OneBeacon booked a loss of $13.2 million for the quarter, or $0.14 per share, versus a loss of $1.3 million, or $0.02, in the 2014 third quarter. OneBeacon’s insurance operations produced $293 million in net written premiums during the quarter, a 15 percent drop over the same period in 2014. Its combined ratio was 96.8 during the quarter compared to 95.3 in the 2014 second quarter.
That $293 million figure included $36 million of ceded written premiums relating to OneBeacon’s transfer of the crop business to AmTrust. Without that hit, as well as OneBeacon’s exit from lawyers liability and the termination of an affiliated reinsurance treaty, premiums grew by 3 percent for the first nine months of 2015.
OneBeacon CEO Mike Miller called the results “disappointing” but said in prepared remarks that the insurer is focusing on underwriting discipline and expects a more competitive marketplace in areas including financial institutions and design professionals and entertainment.
CNA Financial Corp. saw its combined 2015 third-quarter net income plunge to $178 million, or $0.66 per diluted share, versus $213 million, or $0.79 per diluted share over the same period a year ago.
CNA’s property/casualty net written premiums reached $1.53 billion during the quarter, virtually flat with $1.56 billion produced during third-quarter 2014. The division also generated a combined ratio of 85.7 during the quarter, compared with 96.1 a year ago. Catastrophe losses hit $10 million after tax for the quarter, due to U.S. weather-related events.
CNA’s specialty arm took a hit during the quarter, booking $707 million in net written premium versus $736 million in the 2014 third quarter due to lower new business. The combined ratio for specialty reached 74.4, an improvement over 80.8 produced in the 2014 third quarter.
The insurer’s commercial arm saw some solid gains, reporting $642 million in net written premiums during the third quarter compared to $634 million in third-quarter 2014. CNA’s commercial division combined ratio landed at 95.8, a huge improvement over 110.7 during the same period last year.
CNA said its international division booked $180 million in net written premiums during the quarter, down from $190 million in the 2014 third quarter due to adverse effects from foreign exchange rates. CNA’s international business saw improvement in its combined ratio, however, with the number hitting 90.4 during the quarter versus 99 in the 2014 third quarter
Sources: OneBeacon, CNA