CNA Financial Corp. saw a significant drop in net income during its 2019 third quarter as the insurer took a $170 million charge and its P/C combined ratio ticked higher.
CNA booked $107 million in net income during the quarter, or $0.39 per diluted share, compared to $336 million, or $1.23 per diluted share in the 2018 third quarter.
The Chicago-based insurer attributed the $170 million after-tax charge to deficient active life premium reserves on a long-term-care book, “primarily driven by lower discount rate assumptions.” CNA said this was partially offset by a $44 million reduction in long-term-care claim reserves due to the insurer’s annual claim experience study.
CNA’s P/C combined ratio came in at 97.6 for the 2019 third quarter. While healthy, the number compares to a 94.2 combined ratio in the 2018 third quarter.
Here are other result highlights:
- Q3 2019 P/C net investment income reached $274 million, down from $282 million the year before.
- P/C gross written premiums (excluding third-party captives) surpassed $1.85 billion in Q3, up 9 percent from $1.7 billion in the 2018 third quarter. P/C net written premiums hit $1.7 billion, an 8 percent jump over $1.58 billion the year before.
- Specialty gross written premiums were $778 million in Q3, and net written premiums reached $732 million, versus $714 million and $688 million, respectively, in Q3 2018. The combined ratio for the division was 89.8 compared to 87 a year ago.
- Commercial insurance gross written premiums reached $852 million, and net written premiums were $775 million during the quarter, versus $756 million and $697 million, respectively, in the 2018 third quarter. The combined ratio for this division hit 101.6, up from 97.4 in Q3 2018.
- For the international division, gross written premiums reached $226 million compared to $230 million a year ago. Net written premiums landed at $201 million, up from $196 million in the 2018 third quarter. The combined ratio was 107.4 compared to a 103.9 combined ratio in the 2018 third quarter.
Source: CNA Financial Group