Hightlights:
- Net operating income of $331 million
- Net income of $263 million
- Book value per common share of $35.38
CNA Financial Corporation announced third quarter 2009 results, which included net operating income of $331 million, or $1.11 per common share, and net income of $263 million, or $0.86 per common share.
The combined ratio for Property & Casualty Operations was 101.0% for the quarter.
Book value per common share was $35.38 at September 30, 2009, as compared to $27.53 at June 30, 2009 and $20.92 at December 31, 2008.
Net operating income for the three months ended September 30, 2009 improved $248 million as compared with the same period in 2008.
Net operating income for core Property & Casualty Operations increased $179 million, while results for non-core operations increased $69 million.
This improvement was primarily due to lower catastrophe losses, higher net investment income and a $61 million after-tax gain from a settlement that resolved litigation related to the placement of personal accident reinsurance.
Catastrophe losses were $15 million after-tax in the third quarter of 2009, as compared with catastrophe impacts of $168 million after-tax in the third quarter of 2008. Partially offsetting these favorable items was an unfavorable change in current accident year underwriting results excluding catastrophes.
Property & Casualty Operations produced third quarter combined ratios of 101.0% and 107.0% in 2009 and 2008, or 99.5% and 91.3% before the 1.5 point and 15.7 point impacts related to catastrophes.
Thomas F. Motamed, Chairman and Chief Executive Officer of CNA Financial Corporation comments: “CNA turned in another quarter of solid operating income, driven by improved investment income and relatively light catastrophe losses,”.
“In our core Property & Casualty Operations, we are pleased with the continued strong performance of the Specialty Lines segment. We continue to focus on improving profitability in the Standard Lines segment. Rate trends are encouraging across our portfolio. However, the recession has reduced exposures, putting downward pressure on premium volume.”
“We are also pleased by the continued strong recovery of CNA’s investment portfolio. Book value per common share increased 29% over the course of the quarter, even as we continued our efforts to reduce portfolio risk and volatility,” said Mr. Motamed.
Click here to read the full 3rd quarter result details
