CNA Financial Corp’s Q3 went very well for the insurer, which is slated to get a new CEO on Nov. 21. Net income soared, thanks to investment gains, catastrophe losses were relatively stable, and the combined ratio grew only slightly.
Net income came in at $343 million, or $1.26 per diluted share, versus $178 million, or $0.66 per diluted share during the 2015 third quarter. Catastrophe losses during the quarter hit $11 million after tax, largely due to U.S. weather-related events. That’s up from $10 million in catastrophe losses during the same period a year ago.
CNA’s property/casualty combined ratio was at 90.4 during the quarter, compared to 85.7 in the 2015 third quarter.
CNA’s results come as Dino Robusto, a veteran Chubb executive, gears up to become chairman and chief executive officer later this month, succeeding Thomas Motamed, who is retiring. Robustos’s appointment was in 2015, and since then, CNA has hired a number of former Chubb executives to fill key slots.
Here are result highlights:
- Net investment income reached $371 million in Q3, a jump over the $265 million in net income produced during the same period in 2015. Executives credit the gains from limited partnerships, which returned 2.6 percent, versus 3.2 percent in the 2015 third quarter.
- Property/casualty net written premiums surpassed $1.6 billion during Q3, compared to $1.5 billion a year ago.
- Specialty insurance net written premiums were booked at $733 million, compared to $707 million in the 2015 third quarter. The division’s combined ratio was just under 80, compared to 74.4 over the same year-ago period.
- Commercial insurance net written premiums landed at $684 million, compared to $642 million in the 2015 third quarter. The combined ratio was at 99.8, versus 95.8 in the 2015 third quarter.
- Net written premiums for CNA’s international arm were booked at $207 million, up from $180 million in Q3 2015. The combined ratio here was 93.2, higher than the 90.4 reported a year ago.
- Most international growth came from middle market products in the U.S. and Continental Europe, and from product lines now being sold internationally in areas including healthcare and technology.
CNA disclosed in August that it would eliminate its Central zone branch network as a standalone zone and realign it into the property/casualty insurer’s other remaining U.S. market territories.