NU Online News Service, July 30, 2:42 p.m. EDT
CNA Financial Corp.'s chief executive says the commercial insurer is seeing rate increases in every line it writes, and it remains optimistic despite some reports from other insurers indicating rates could be flattening.
“We continue to push [rate increases],” says Thomas F. Motamed, chairman and chief executive officer of CNA, during an earnings conference call.
“July was a very good month for us, relative to rates,” he continues. “So we are not prepared to accept flattening at this time.”
The Chicago-based insurer says it saw average rate increases in the second quarter of 6 percent, up from the 4 percent increases reported in the first quarter. CNA received 1 percent rate increases during 2011's second quarter, Motamed says.
The insurer's specialty business reports average rate increases of 5 percent, to go along with a 5 percent increase in second quarter net written premiums when compared to the same period a year ago.
In commercial, CNA achieved rate increases of 7 percent during the second quarter, Motamed adds. Excluding the company's sale of First Insurance Co. of Hawaii last year, CNA's second-quarter commercial net written premiums increased 5 percent compared to last year.
Second-quarter net income at CNA was $166 million compared to $124 million during the same time last year. Profit after six months improved to $416 million from $344 at June 30, 2011.
P&C operations at CNA produced a second-quarter combined ratio of 101.7 compared to 106 in 2011 because after-tax catastrophe losses fell to $44 million from $65 million during 2011's second quarter.
At the half-year point, the company's combined ratio was 101.8 compared to 104 last year.
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