Premiums down 4%, combined ratio deteriorates at CNA Financial

Commercial insurer CNA Financial Corp. released Monday its financial results for the third quarter, reporting a 2.1-point deterioration in its combined ratio, a 4% drop in net written premiums and a 4.1-point improvement in the combined ratio of CNA Specialty.

Chicago-based CNA reported net written premiums of $1.56 billion during the three months ending Sept. 30, down 4% from $1.691 billion during the same period in 2013. All figures are in United States dollars.

Net income was $213 million in the latest quarter, down 21.7% from $272 million in Q3 2013.

“The current year period included a $34 million after-tax loss on an annuity coinsurance transaction related to the August 1, 2014 sale of Continental Assurance Company, as well as improved results in our long term care business and a reduction in the allowance for uncollectible reinsurance receivables,” CNA stated in a release.

CNA is majority-owned by New York City-based Loews Corp.

In Canada, CNA provides a variety of commercial insurance coverages, including property, liability and marine. Target markets in Canada include construction contractors, manufacturers and oil and gas. CNA Financial also provides claims management and risk control consulting services.

For the third quarter, CNA reported a loss ratio, excluding catastrophes, of 62.9%, up 0.1 points from 62.8% in Q3 2013.

The combined ratio was 96.1% in Q3 2014, up from 94% in Q3 2013. Excluding catastrophes and development, the combined ratio was 96.2% in Q3 2014, up from 95.9% in Q3 2013.

Most of CNA’s premiums were from CNA Specialty and CNA Commercial, which reported net written premiums of $766 million (down 2% from $778 million in Q3 2013) and $709 million (down 7% from $760 million in Q3 2013) respectively during the third quarter.

Hardy Underwriting Bermuda Ltd,., which CNA acquired in 2012, had net written premiums of $85 million in Q3 2014, up from $81 million in Q3 2013.

In CNA Specialty, the company reported a Q3 loss ratio of 51.4% in 2014 (down from 55.6% in 2013) and a combined ratio of 81.6% (down from 85.3% in 2013).

In CNA Commercial, the company reported a Q3 loss ratio of 73.4% in 2014 (up from 67.9% in 2013) and a combined ratio of 108.3% in 2014 (up from 103% in 2013).

Excluding catastrophes and development, CNA reported a combined ratio, in CNA commercial, of 98.9% in the latest quarter, down from 99.3% in Q3 2013.

For the first nine months of 2014, CNA Financial reported net written premiums of $4.981 billion, down 3% from $5.115 billion in the first nine months of 2013. The loss ratio, year-to-date as of Sept. 30, was 66.3%, up 0.7 points from 65.6% in the same period in 2013.

The loss ratio, excluding catastrophes and development, dropped from 64.7% in the first nine months of 2013 to 63.2% this year. The combined ratio, for the first nine months, was 99.7% in 2014, up 0.7 points from 99% in 2013.