CNA’S INCOME NEARLY DOUBLES AND BEATS ANALYSTS’ EXPECTATIONS

US commercial property/casualty group CNA Financial’s third-quarter net income nearly doubled to $343m from $178m, as improved investment results offset a decline in underwriting income. Adjusted earnings per share came in at $1.15, easily beating analysts’ forecast of 84¢. On the investment side of the ledger, CNA swung to $46m in realised gains from losses $49m and posted earned investment income of $524m, up 48%. The group’s core property/casualty operation saw underwriting income fall 32% to $158m, as earned premiums grew 1.2% to $1.63bn and claims costs rose 6.9% to $900m. The quarterly combined ratio added 4.7 points to 90.4%. The decline in underwriting income was driven by the commercial segment, where income fell to $1m from $31m, in part reflecting a rise in motor claims. In a conference call on Monday, chairman and chief executive Thomas Motamed – who is retiring next month and will be succeeded by Dino Robusto – referred to commercial motor as a “black eye” for the industry. Underwriting income fell 22% to $142m in the specialty segment and dropped 21% to $15m in the international segment. The group’s life & group non-core segment swung to operating income of $6m from a loss of $30m.