Superstorm Sandy, non-catastrophe losses and a decrease in favorable prior-year development resulted in a net loss of $9 million for the 2012 fourth-quarter at CNA Financial Corp.
The Chicago-based insurer says Sandy caused $190 million in losses, after tax and including reinstatement premiums, during the fourth quarter. The combined ratio in CNA's property and casualty operation was 116.1 for the last quarter of 2012.
Comparatively, 2011's fourth quarter saw $11 million in catastrophe losses, says the primary and specialty commercial insurer.
In a statement, Chairman and CEO Thomas F. Motamed says Sandy “materially affected” fourth quarter results, and the company's “track record of continuously improving our accident-year loss ratio was slowed by a number of large non-cat losses” in the fourth quarter.
Specifically in CNA's specialty segment, Motamed says the insurer addresses an upward trend in the non-cat accident-year loss ratio “with rate increases and tighter underwriting standards.”
Motamed says CNA got rate increases throughout its P&C portfolio during the 2012 fourth quarter.
Average rate in specialty increased 6 percent comparing fourth quarters in 2012 and 2011. Net written premiums increased $18 million quarter-to-quarter. For the full year, net written premiums rose 2 percent to about $2.92 billion.
Rates increased 8 percent during the fourth quarter in the commercial segment, but the loss ratio jumped to 96.6 compared to 59.6 during 2011's fourth quarter—due largely to catastrophe losses and less favorable prior-year reserve development. For the full year, net written premiums remained relately flat at about $3.37 billion.
Net income in 2012 increased to $628 million compared to $612 million in 2011. Operating income year-to-year fell $23 million to $587 million. Catastrophe losses for the full year were $270 million after tax and including reinstatement premiums, compared to $144 million in 2011.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
