Continued rate hikes helped boost CNA Financial’s 2021 third quarter net income, even as the Chicago-based commercial and specialty property/casualty insurer dealt with higher net catastrophe losses and lower net investment income.
CNA booked Q3 2021 net income of $256 million, or $0.94 per share, compared to $213 million, or $0.79 per share the year before.
“Our third quarter results were very strong, with core income increasing by 23 percent despite the elevated catastrophe losses,” CNA Chairman and CEO Dino Robusto said in prepared remarks.
The insurer also reported double-digit gross written premium growth across all of its P/C business segments and new business growth that reached 24 percent.
As well, Robusto touted earned rate increases in Q3 of 11 percent, which he said were “substantially” above long-run loss cost trends.
“We are well positioned to increasingly capitalize on the favorable market conditions we anticipate into 2022,” Robusto added.
CNA’s combined ratio for its P/C insurance operations reached 100 for the quarter, a slight improvement over the nearly 101 combined ratio in the 2020 third quarter.
Gross written premiums for CNA’s property/casualty operations surpassed $2.2 billion during Q3, compared to $2 billion a year ago. Net written premiums for the division were $1.9 billion, versus more than $1.8 billion in the 2020 third quarter.
Net investment income for P/C operations reached $271 million, but that’s down from $292 million last year. Overall net investment income was $513 million pretax, versus $517 million the year before.
Net catastrophe losses for Q3 2021 reached $178 million, versus $160 million in Q3 2020.
CNA’s P/C segments, excluding third party captives, saw generated gross written premium growth of 10 percent, driven by new business growth of 24 percent. Net written premium growth ticked 5 percent higher during the quarter, the company said.