CNA Financial – CNA – Quarterly Dividend of $0.15 Per Share
CNA Financial Corporation (NYSE: CNA) announced third quarter 2012 results, which included net operating income of $216 million, or $0.80 per share, and net income of $221 million, or $0.82 per share. Property & Casualty Operations combined ratio for the third quarter was 99.7%. Book value per share was $46.99 at September 30, 2012, as compared with $45.34 at June 30, 2012 and $42.66 at December 31, 2011.
CNA Financial also announced declaration of a quarterly dividend of $0.15 per share, payable November 29, 2012 to stockholders of record on November 13, 2012.
Net operating income for the third quarter of 2012 increased $125 million as compared with the same period in 2011. Net operating income for our core Property & Casualty Operations increased $134 million. This increase was primarily due to higher net investment income, driven by significantly favorable limited partnership results, and lower catastrophe losses. For the third quarter of 2012, catastrophe losses were $18 million after-tax as compared with $32 million after-tax for the same period in 2011. Our Property & Casualty Operations produced third quarter combined ratios of 99.7% and 99.1% in 2012 and 2011. Excluding the impacts of catastrophe losses and development, the combined ratio improved to 100.7% from 101.0% for the same periods. Net operating results decreased $9 million for our non-core segments, primarily due to unfavorable morbidity in our long term care business.
“We are pleased to report our third quarter results which include a much improved level of earnings and a continuation of favorable rate and retention trends in our core P&C business,” said Thomas F. Motamed, Chairman and Chief Executive Officer of CNA Financial Corporation. “Our third quarter results reflect the favorable impact of the addition of the newly acquired Hardy group. Hardy’s combined ratio was 85.8% with net earned premium of $64 million.”
Pretax net investment income for the third quarter of 2012 increased $207 million as compared with the same period in 2011, primarily driven by a significant increase in limited partnership investment results.
Net operating income for the nine months ended September 30, 2012 increased $176 million as compared with the same period in 2011. Net operating income for our core Property & Casualty Operations increased $159 million. This increase was primarily due to higher net investment income, driven by favorable limited partnership income, and lower catastrophe losses. For the nine months ended September 30, 2012, catastrophe losses were $80 million after-tax as compared with $133 million after-tax for the same period in 2011. Our Property & Casualty Operations produced combined ratios of 101.1% and 102.3% for the nine months ended September 30, 2012 and 2011. Excluding the impacts of catastrophe losses and development, the combined ratio improved to 101.3% from 101.8% for the same periods. Net operating results improved $17 million for our non-core segments, driven by results in our Life and Group Non-Core segment.
Pretax net investment income for the nine months ended September 30, 2012 increased $188 million as compared with the same period in 2011, primarily driven by a significant increase in limited partnership investment income and an increase in fixed maturity securities income.
About CNA Financial Corporation – CNA
Serving businesses and professionals since 1897, CNA is the country’s seventh largest commercial insurance writer and the 13th largest property and casualty company. CNA’s insurance products include standard commercial lines, specialty lines, surety, marine and other property and casualty coverages. CNA’s services include risk management, information services, underwriting, risk control and claims administration.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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