CNA Group gained an outlook upgrade from Standard & Poor’s based on improvement of its commercial lines business.
S&P Global Ratings revised its outlook for CNA to positive from stable. As well, the ratings agency affirmed its “A” long-term issuer credit and financial strength ratings for the insurer and its subsidiaries.
The outlook upgrade is mostly about commercial lines and CNA’s improvement in the business. Stellar performance in specialty insurance has also helped, Standard & Poor’s said.
“The positive outlook recognizes CNA’s momentum on the improvement of its commercial lines segment,” S&P said in its bulletin about the insurer. “Added to this, recent years have witnessed decreased volatility from the commercial lines reserves, consistent underwriting performance in the specialty business, commitment to retain extremely strong capital and continued de-risking of its runoff long-term care block.”
If CNA can continue this upward trajectory, S&P said it would consider raising the insurer’s ratings within the next 18-24 months.
CNA reported $336 million in net income for the 2018 third quarter, or $1.23 per diluted share. That compares to $144 million, or $0.53 per diluted share, during the same period a year ago. The insurer’s Q3 property/casualty gross written premiums surpassed $1.58 billion, down slightly from just under $1.6 billion in the 2017 third quarter. The Chicago-based insurer’s results benefited from the Trump tax cuts and lower catastrophe losses.
Source: S&P Global Ratings