$170 Million Charge Takes Chunk Out of CNA’s Q3 Net Income

October 28, 2019

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:

Source: CNA Financial Group