NU Online News Service, Nov. 1, 3:35 p.m. EDT
CNA Financial Corp. recorded a 2010 third-quarter net loss of $140 million, driven by a $365 million after-tax net loss related to its transfer of legacy asbestos and environmental pollution liabilities to Berkshire Hathaway's National Indemnity Company (NICO).
CNA Financial posted 2009 third-quarter net income of $263 million.
Thomas F. Motamed, chairman and chief executive officer, said the third quarter reflected "continued focus on our profit-improvement strategies."
The third-quarter combined ratio for property and casualty operations was 97.9 compared to 101 during the same period last year, but a decrease in exposures and economic conditions affected business, the company said.
Net written premiums decreased $24 million in CNA Commercial compared to 2009 third-quarter results. Renewal rates were flat. Operating income decreased $10 million.
In CNA Specialty, net written premiums increased $16 million but net operating income fell $9 million.
Excluding the impact of the loss portfolio transfer, CNA Financial posted $186 million in operating income.
Under the terms of the agreement finalized at the start of September, CNA's Continental Casualty Company and several other insurance subsidiaries gave NICO about $1.6 billion of A&E pollution liabilities under a retroactive reinsurance agreement with a total limit of $4 billion effective Jan. 1, 2010.
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