CNA Financial Corporation CNA reported third-quarter 2015 operating earnings of 77 cents per share, which outperformed the Zacks Consensus Estimate and improved 13.2% year over year.
Including net realized investment losses, net income came in at 66 cents, down 16.5% year over year.
Behind the Headlines
Net investment income declined 23% year over year to $265 million due to soft performance at limited partnership investments.
Net written premiums at Property & Casualty Operations decreased 2% year over year to $1.5 billion. Net operating income increased 9.1% year over year to $263 million on better underwriting results. However, lower limited partnership investment results limited the upside. Combined ratio improved 1,040 basis points in the quarter –– the lowest in more than a decade.
Book value as on Sep 30, 2015 was $45.16 per share, down 1.6% year over year.
Segment Results
Specialty net written premiums declined 4% year over year to $707 million due to less new business. Combined ratio improved 640 basis points to 74.4%.
Commercial net written premiums increased 1% year over year to $642 million driven by new business and retention as well as a positive rate. Combined ratio improved 1,490 basis points to 74.4%.
International net written premiums decreased 5% year over year to $180 million due to the unfavorable effect of foreign currency exchange rates. Combined ratio improved 860 basis points to 74.4%.
Life & Group Non-Core operating revenues increased 1.6% year over year to $318 million. Net operating loss narrowed to $30 million from the year-ago loss of $42 million.
Corporate & Other Non-Core net operating loss widened to $23 million from $17 million loss incurred in the year-ago quarter..
Dividend Update
The board of directors of CNA Financial announced a quarterly dividend of 25 cents per share. The dividend will be paid on Dec 2, 2015 to stockholders of record on Nov 16.
Zacks Rank and Other Performance of Other P&C insurers
CNA Financial currently carries a Zacks Rank #3 (Hold). The bottom line at RLI Corp. RLI, The Travelers Companies Inc. TRV and Progressive Corp. PGR outperformed their respective Zacks Consensus Estimate in the third quarter.
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