Chicago-based CNA Financial Corporation reported third quarter net operating income from continuing operations of $38 million, or $0.17 per share, as compared with a net operating loss from continuing operations of $160 million, or $0.86 per share, reported in the third quarter of 2001, which reflected $304 million in loss estimates from the Sept. 11 attacks.
Net written premiums in p/c lines grew by 18 percent in the third quarter to $1.828 billion, compared to $1.551 billion in the same period of 2001, driven by “strong rate achievement, new business opportunities and reduced utilization of reinsurance,” said the company.
Stephen W. Lilienthal, Chairman and CEO, indicated that “While disappointed in today’s reported results, I am encouraged by the improved underlying fundamentals shown by all three of CNA’s operating units. Premiums are strong, underwriting programs are virtually complete, gross accident year loss ratios have improved significantly and expense initiatives have taken hold.”
The announcement said that “Excluding the impact of the WTC event, net operating income from continuing operations in the third quarter of 2002 declined $106 million, or $0.61 per share, over the same period in 2001.” It explained that this was mainly due to “a $60 million decline in limited partnership income, the increased cost of the Company’s reinsurance programs and increased losses associated with the European operations including $24 million of catastrophe losses for the European floods.”
“Partially offsetting these declines was an improved 2002 gross accident year loss ratio for the primary property and casualty businesses. The life and group businesses also contributed improved operating results,” it continued.
For the first nine months of the year CNA posted net operating income from continuing operations of $289 million, or $1.29 per share, compared with a net operating loss from continuing operations of $2.118 billion, or $11.51 per share, for the same period in 2001.
Topics Profit Loss
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