CNA Financial Corp. reported on Monday a third quarter net profit of $ 213 million, up from $ 107 million for the same period in 2019, despite maintaining $ 160 million in pre-tax disaster losses.
Chicago-based CNA real estate / deaths increased to 100.9% during the quarter compared to 97.6% during the third quarter of 2019. The third quarter of the year included 8.7 points of catastrophic losses from Hurricanes Laura, Sally and Isaias and Midwest -derecho, the CNA said in a statement.
CNA reported net contributions to C / C premiums of USD 1.82 billion for the quarter, an increase of 7% compared to the corresponding period last year, mainly due to non-catastrophe insurance results and a favorable net development in previous years. The insurer's commercial line reported a 4% improvement to $ 804 million and the specialty saw a 9% increase to $ 798 million due to strong interest rates and higher new business.
"We only expected a relatively modest impact on the loss rate benefit as a large part of our portfolio consists of insured persons in important industries such as construction, healthcare and manufacturing that were not subject to on-site protection," says CNA's Chairman and CEO Dino Robusto in a call for results. "And we continue to assume a potential for greater severity in accidents such as car and general liability when the economy recovers over time, so we believe it is still too early to respond positively to short-term trends . "
The insurer's cost ratio improved to 31
" The ability for us to work in this remote environment creates an ability for us to say, in the future, we believe that will probably be less total travel and expenses, "said Robusto, but he noted that travel and expenses are not a large part of its coverage.
Mr. Robusto said that The donor continues to feel the impact of social inflation, especially in its aging services and car portfolios.
"It is clear that as the market continues to harden, we will have many benefits" in terms and conditions beyond pricing, with more restrictive policy terms, higher deductibles and extra exceptions.
CNA has experienced losses related to medical malpractice in its aging service line, according to Q10 filing, although it received fewer claims in the third quarter than in the second, Robusto said.