CNA Financial Corp’s third-quarter profit fell 50% from a year earlier to $128 million due to investment losses, the insurer reported Monday.
CNA reported a net investment loss of $85 million, compared with a profit of $19 million in last year’s third quarter.
The investment loss includes “losses from fixed income securities as a result of portfolio repositioning, and a non-economic loss of $35 million related to the expected re-creation of a co-insurance agreement in our life and group segment and related funds retained embedded derivatives,” CNA said in its income statement.
Gross written premium in the core property/casualty business increased 3.9% to $3.37 billion. CNA̵7;s total expense ratio improved to 95.8% from 100% in the same period last year.
On a conference call with analysts discussing the results, CEO Dino Robusto said CNA is seeing stronger exposure-related premium from inflation-sensitive lines such as workers’ compensation, property and general liability. “We feel good about renewal dynamics,” he said.