CNA Financial Corp. said it turned a profit for the first quarter due to higher net investment income driven by limited partnership and stock returns, as well as better non-catastrophe current accident year underwriting results.
The commercial property and casualty insurance company on Monday posted net income of $312 million, compared with a loss of $61 million in the same period last year. It reported earnings of $1.14 a share, compared with a loss of 23 cents a share in the year-ago period.
Core earnings for the period was $263 million, or 96 cents a share. Analysts polled by FactSet were expecting operating earnings of 88 cents a share.
Core income in property and casualty operations rose to $263 million from $121 million. Specialty-segment core income was $170 million, up from $96 million. Core income in the commercial segment was $69 million, compared with $23 million in the year-ago period. International core income was $24 million, up from $2 million. Life and group core income rose to $36 million from $4 million.
Core loss in the corporate and other segment widened to $36 million from $17 million due to a recognition of a $12 million after-tax loss from the cession of a legacy portfolio of excess workers' compensation policies under a retroactive reinsurance agreement, the company said.
Net investment income rose to $504 million from $329 million.
"We remain bullish about our growth opportunities for the remainder of the year as we expect favorable market conditions to persist," Chairman and Chief Executive Dino Robusto said.
Write to Dave Sebastian at [email protected]