CNA Financial Corp. saw its first quarter net income improve dramatically over the previous year, thanks in part to better investment numbers.
At the same time, CNA’s net pretax catastrophe losses hit $125 million in Q1, compared to $75 million in Q1 2020. Winter storms Uri and Viola were largely to blame.
The commercial property/casualty insurer booked $312 million in net income during the 2021 first quarter, or $1.14 per share, compared to a $61 million net loss, or negative $0.23 per share over the same period a year ago.
CNA Chairman and CEO Dino Robusto said that underlying results were strong, “offsetting elevated catastrophes” during the quarter. As well, he noted that the insurer continued to enjoy “double-digit rate increases and strong new business growth.”
CNA’s Q1 property/casualty combined ratio was 98.1 for the quarter, up slightly from 97.3 in the 2020 first quarter. Its commercial combined ratio jumped to 106.7, higher than the 101.6 generated last year.
The insurer’s P/C segments, excluding third party captives, generated 8 percent growth in gross written premium and a 4 percent increase in net written premium.
Other Q1 result highlights:
- P/C gross written premiums excluding third party captives were nearly $2.3 billion, versus $2.1 billion in the 2020 first quarter.
- Net written premiums were more than $1.9 billion, up from over $1.8 billion in Q1 2020.
- Net investment income in the division hit $279 million, compared to $113 million a year ago.
- Specialty insurance gross written premiums (excluding third party captives), was $816 million, compared to $761 million the year before.
- Net written specialty premiums landed at $742 million, versus $694 million in the 2020 first quarter.
- Commercial insurance gross written premiums excluding third party captives surpassed $1.1 billion for the quarter, up from $1 billion last year.
- Commercial insurance net written premiums hit $960 million, compared to $950 million in Q1 2020.