CNA Financial Corp. reported on Monday 2022 fourth-quarter net income of $248 million, down 6.8% from the same quarter in 2021, as investment income fell and higher catastrophe losses hit the insurer’s underwriting results.
CNA reported property/casualty premiums of $2.28 billion, up 5% from the prior-year quarter.
The company’s total cost ratio deteriorated to 93.7% from 92.9% in the previous year.
Catastrophe losses totaled $76 million in the fourth quarter, primarily from Hurricane Ian and Winter Storm Elliot, Dino Robusto, chairman and CEO of CNA, said on a conference call with analysts.
The total expense ratio was “consistent with last year”; and followed seven consecutive quarters of overall good overall expense ratio, Robusto said.
Property/Casualty revenue for the quarter fell 5.2% to $290 million. Investment income for its life insurance business fell 15.7% to $204 million.
Mr. Robusto said that in the fourth quarter, CNA “continued to achieve strong production performance,” and saw exposure increases in inflation-sensitive lines such as workers’ compensation and general liability.
Workers’ rate cuts were “low single digits and relatively stable over the past seven quarters,” Robusto said.
“We have steadily and methodically improved our results over the past six years,” he said.
Scott Lindquist, CNA’s chief financial officer, said favorable labor developments were offset by less favorable general liability and commercial auto conditions.
For the full year, CNA reported net income of $894 million, down 25.6%. Net premium income increased 9% to $8.66 billion and the total expense ratio improved to 93.2% compared to 96.2% in 2021.