CNA Boosts Q3 Profit Despite Catastrophes; Sees ‘Favorable’ 2022 Ahead

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 compared to $213 million the year before.

“Our third quarter results were very strong, with core income increasing by 23% despite the elevated catastrophe losses,” CNA Chairman and CEO Dino Robusto said .

The insurer also reported double-digit gross written premium growth across all of its property/casualty business segments and new business growth that reached 24%.

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 was 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.

Source: CNA

Topics Catastrophe Profit Loss