For CNA Financial Corp., the 2018 second quarter produced mostly gains: Higher net premiums written in most of its divisions, increased investment returns and still-healthy combined ratios in all but one division. Net income came in flat, however, and international insurance was a money-loser.
The Chicago-based property/casualty insurer booked $270 million in net income for the quarter, or $0.99 per diluted share. These results virtually mirror CNA’s numbers from the 2017 second quarter of $272 million in net income, or $1 per diluted share. If you look at the 2018 first half, however, CNA produced $561 million in net income, or $2.06 per diluted share, versus $532 million, or $1.96 per share in the 2017 first half.
CNA booked a property/casualty combined ratio for the 2018 second quarter of 93.8, compared to 93.5 in the previous year. For the first six months of 2018, the insurer’s combined ratio was 93.5, down from 95.3 over the same, year-ago period.
CNA Chairman and CEO Dino Robusto was bullish about the overall numbers, stating in prepared remarks that “these results give me confidence in the ongoing progress CNA is making in our journey of generating sustained top quartile underwriting performance.”
Here are additional Q2 2018 result highlights:
- Net P/C investment income came in at $302 million for the second quarter, up from $276 million in the 2017 second quarter.
- P/C net written premiums were nearly $1.77 billion, compared to $1.7 billion in the 2017 second quarter. Net catastrophe losses were $26 million, compared to nearly $40 million in the 2017 second quarter.
- Business net written premiums landed at $688 million, down from $701 million in Q2 2017. The combined ratio was 86.8, compared to 90.3 over the same period last year. CNA explained that net premiums for specialty dipped about 2 percent in the quarter versus a year ago, due to a higher level of ceded reinsurance to back growth in management liability. This was partially offset, however, by higher new business and price increases.
- Commercial insurance net written premiums were $810 million for the quarter, up 4 percent from $782 million in the 2017 second quarter. The combined ratio was 96.6, up from 94.6 last year. CNA said the premium windfall came from price increases and higher new business.
- International insurance premiums were $271 million in the quarter, up from $219 million in the 2017 second quarter. The combined ratio, at 104.7, was higher compared to the 100.1 combined ratio in the 2017 second quarter. Excluding currency fluctuation, net premiums for the division jumped 19 percent compared to the last year, due to price hikes and higher new business. Catastrophe losses were $4 million for the quarter, and non-existent in the 2017 second quarter.