CNA Financial Corp. on Monday reported first-quarter net income of $297 million, up 0.7% from a year earlier.
“During the first quarter, CNA produced very strong results with excellent profitability and double-digit, top-line growth from significant new business success, continued high retention and a rebound in rate changes from last year’s fourth quarter,” Chairman and CEO Dino Robusto said in a conference call with analysts.
The insurer’s total expense ratio deteriorated to 93.9% from 91.9% in the fourth quarter of 2022, a decline largely attributed to higher catastrophe losses.
Property/Casualty premium income was $2.25 billion, up 11% from the prior year.
And net investment income of $525 million represented a 17% year-over-year increase.
Workers’ compensation pricing continued to be “somewhat negative,” Robusto said, but otherwise general rates rose 9% and renewal premium change increased 11%, which, he said, “continues to be well above long-term loss. cost trends.”
Robusto said new business rose 12 percent to $503 million and was strong across the board.
“We expect new, high-quality business opportunities to persist,” he said.
Chief Financial Officer Scott Lindquist said the property/casualty segment had record pre-tax underlying insurance income of $197 million, up 19% from the prior quarter, partially offset by higher pre-tax catastrophe losses and unfavorable performance in the prior period.