For the year, the company says net income dropped 11 percent, or $76 million, to $614 million. P&C net written premiums increased 5 percent or $323 million to $6.22 billion. The combined ratio rose 3.6 points to 98.4.

During the fourth quarter, CNA experienced catastrophe losses of $11 million, compared to $14 million in 2010. For the year, catastrophe losses in 2011 stood at $144 million compared to $79 million the previous year.

The company increased insurance reserves in its life segment by $148 million for its annuity and long term care business.

Discussing the results during a financial analyst's conference call, Thomas F. Motamed, chairman and chief executive officer of CNA, says the company saw improved underwriting profitability in P&C commercial and specialty business. He adds that the company is pleased that the “market is accepting rate increases after a long period of rate decreases,” and notes that the company will continue to “focus on the fundamentals.”

“We are only writing business at the right price the first time to bring it in the door and then we are constantly looking to push rate once it's in the door,” says Motamed.