CNA Financial Corporation reported 2007 fourth-quarter net income fell 50 percent compared to the same period in 2006, driven down by investment losses related to the decline in credit market conditions.
The company announced its fourth-quarter net income at $164 million, down $165 million from a reported figure of $329 million in 2006.
For the year, CNA reported a net income of $851 million compared to $1.1 billion in 2006. This decrease was also attributed to investment losses in 2007 as opposed to gains in 2006.
CNA's property-casualty operations produced $1.63 billion in net written premiums for the fourth quarter, compared to $1.69 billion in the fourth quarter of 2006. Net written premium for standard lines declined 11 percent, while specialty lines increased 4 percent.
For the year, CNA reported $6.77 billion in property-casualty operations net written premium, compared to $7.03 billion in 2006.
Jim Lewis, president and chief executive officer of p-c operations, said in a conference call with financial analysts that the results are in line with expectations in the softening market. "Overall, our premium volume reflects a disciplined response to rate pressure on our renewal book and stiff competition for new business," Mr. Lewis said.
The combined ratio for property-casualty operations was 98 for the quarter, down 1 point from the fourth quarter of 2006. For the year, the combined ratio was 94.8 percent, down 1.6 points from 2006.
Mr. Lewis said that property-casualty operations enjoyed "a good quarter and a very good year." He added, "In short, we continued to execute on a strategy that guides us through the softening market and positions us to be in great shape when the market turns up."
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