Higher premiums, soaring investment results and fewer catastrophe losses helped CNA Financial Corp. produce solid net income to close out 2019.
CNA’s Q4 2019 net income reached $273 million, or $1 per share, versus an $84 million loss, or negative $0.31 per share in the 2018 fourth quarter.
Dino Robusto, CNA’s chairman and CEO, said that the results reflect both strong underwriting improvements and the benefits of premium increases.
“With fourth-quarter premium rates increasing to 7 percent and gross premiums increasing to 8 percent, CNA is well positioned going into 2020,” Robusto said.
- CNA’s fourth-quarter property/casualty combined ratio was 95.6 versus 105.4 a year ago. That result reflects catastrophe losses that hit $51 million in Q4 2019 versus $146 million in the previous year’s quarter.
- Net investment income on the P/C insurance side reached $336 million in the fourth quarter, up from $127 million in the 2018 fourth quarter.
- Q4 P/C net written premiums came in at $1.74 billion in Q4 2019 compared to nearly $1.66 billion in the 2018 fourth quarter.
- Specialty insurance net written premiums reached $705 million in the quarter, up from $692 million in Q4 2018.
- Commercial insurance net written premiums came in at $779 million, improved from $721 million a year ago.
- The Q4 commercial insurance combined ratio was 100.6 versus 113.3 in the 2018 fourth quarter.
- Commercial insurance premiums in the sector grew 8 percent in Q4 compared to the previous year, something CNA said was driven by strong retention, higher new business and favorable rate.