Catastrophe losses drove CNA Financial Corp.’s property/casualty and commercial division combined ratios higher in the first quarter, though the insurer saw its net income rise slightly as investment income rebounded and rate increases took hold.
CNA’s net income came in at $342 million in Q1, or $1.25 per diluted share, versus $291 million and $1.07 per diluted share in the 2018 first quarter.
“Our U.S. P/C segments generated good premium growth, premium rate increases improved on many major lines, investment income rebounded favorably, and long-term care once again generated positive core income,” CNA Chairman and CEO Dino Robusto said in prepared remarks.
CNA said its gross written premium growth excluding third-party captives grew 5 percent during the quarter, with net premium growth inching 2 percent higher. Gross written premium dipped 5 percent and net written premium plunged 12 percent for the insurer’s international segment, however.
Here are result highlights:
- CNA’s property/casualty net written premiums surpassed $1.8 billion in Q1, about flat compared to Q1 2018. P/C net investment income hit $360 million, up from $285 million last year. For the division, the combined ratio landed at 97.8, up from 93.1 over the same period in 2018.
- CNA’s specialty arm produced $698 million in net written premiums during the quarter, up from $686 million in Q1 2018. The combined ratio was 92.3, up from 87.5 last year.
- The insurer’s commercial arm produced $849 million in net written premiums in Q1 2019 versus $832 million in Q1 2019. The combined ratio was 101.3, up from 97.1 last year.
- CNA said its net written international premiums were at $259 million during the quarter, down from $295 million in the 2018 first quarter. The combined ratio nearly hit 102, up from 96.6 in the 2018 first quarter.