CNA Financial Corporation has reported that full-year net income totalled $894 million, compared with $1.2 billion from 2021.
Core income for the full year also totalled $1.0 billion, compared to last years $1.1 billion.
The firms property & casualty (P&C) core income for the full year was $1.2 billion, compared to 2021’s $1.1 billion. CNA noted that the increase in core income reflects record high underwriting income of $559 million, as well as higher investment income from fixed income securities, partially offset by lower investment income from limited partnerships and common stock.
P&C also recorded a record low combined ratio of 93.2%, compared with 96.2% from 2021.
At the same time, underlying combined ratio was a record low 91.2% compared with 91.4% in the prior year. The underlying loss ratio was 60%, consistent with the prior years.
In Q422 CNA reported a net income of $248 million, a slight decrease from $266 million in Q421.
Core income for the quarter increased to $274 million, from $265 million from the prior year quarter.
P&C income for Q4 totalled $342 million, compared to $353 million from the same period last year.
CNA’s P&C segments produced a core income of $342 million for Q422, a decrease of $11 million compared to the prior year quarter. CNA stated that the decrease was driven by lower investment income from limited partnerships and common stock, as well as lower underwriting income, including a $36 million increase in pre-tax catastrophe losses to $76 million.
Additionally, net investment income for the quarter decrease $48 million from $551 million in 2021, to $503 million for 2022. For the full year, the segment also decreased to $1.8 billion, from $2.1 billion from 2021.
“We had another excellent quarter with solid top-line growth and strong underwriting profitability which capped off an excellent year of underwriting performance. Gross written premium growth ex captives was 8% for the quarter and 10% for the year, marking two straight years of double-digit growth,” said Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.
“Overall P&C renewal premium change was 7% in the quarter and 9% in Commercial which is up 2 points from the third quarter. The combined ratio was 93.7% for the quarter and a record low 93.2% for the year. We produced core income of $274 million for the quarter and $1,048 million for the year. Core income was greater than $1 billion for the second straight year and represents our highest two-year total on record.
“Given our strong results in 2022, we are optimistic about our opportunities to capitalize on the continued favorable market conditions, and achieve a meaningful benefit from the tailwind of higher yields on our fixed maturity portfolio.”
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