CNA Financial reports 2008 Q4 loss of US$336 million

CNA Financial absorbed a 2008 Q4 net loss of US$336 million, compared to a profit of US$164 million over the same period in 2007.
For the entire year of 2008, CNA reported a loss of US$299 million, well below the US$851 million profit it recorded in 2007.
“CNA’s core property and casualty operations performed well, with a fourth quarter combined ratio of 89.1% and a 98.0% combined ratio for 2008, our third consecutive year with a sub-100% combined ratio,” said Thomas F. Motamed, chairman and CEO of CNA Financial Corporation. “While our core business is strong, our fourth quarter and full-year results reflect the impact of the severe and prolonged turmoil in the financial markets on our investment income and realized investment results.”
Pre-tax net investment income for 2008 Q4 decreased US$404 million, or 70%, compared with the same period in 2007. “This decline was primarily driven by significant losses from limited partnership investments,” the company said in a press release.
Net operating income for CNA’s core property and casualty operations decreased US$518 million.
“The decrease was primarily due to lower net investment income and higher catastrophe impacts,” the company said. “The catastrophe impacts were [US]$239 million after tax for the year ended Dec. 31, 2008, as compared to [US]$51 million after-tax for the same period in 2007.”
The company wrote just slightly less net written premium in 2008 (US$6.5 million) than it did in 2007 (US$6.8 million).