CNA Profit Falls as Long-Term Care Reserves Weigh on Results
CNA reported lower third-quarter net and core income, with reserve assumption updates driving a larger loss in its Life & Group segment.
Key takeaways
- Third-quarter net income was $196 million, down from $403 million a year earlier.
- Core income fell to $203 million from $409 million.
- Life & Group reported a $171 million core loss, including a $137 million after-tax impact from reserve updates.
CNA Financial reported third-quarter net income of $196 million, or $0.72 per share, compared with $403 million, or $1.48 per share, a year earlier. Core income was $203 million, or $0.75 per share, down from $409 million, or $1.50 per share.
Property & Casualty core income fell to $397 million from $456 million. The company cited lower underlying underwriting results and higher catastrophe losses. Its combined ratio rose to 97.0% from 92.8%, including catastrophe impacts of 2.8 points, compared with 1.5 points in the prior-year quarter.
Life & Group reported a core loss of $171 million, versus a $22 million loss a year earlier. CNA said annual long-term care reserve assumption updates had an unfavorable after-tax impact of $137 million. The company said the expected benefits of recent investment portfolio actions are not reflected in current-period earnings under GAAP accounting.
Net investment income was $635 million, compared with $638 million a year earlier. CNA also declared a regular quarterly cash dividend of $0.48 per share, payable December 3 to stockholders of record November 16.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
