CNA Financial Corporation reported first quarter 2002 net operating income from continuing operations of $111 million, or $0.50 per share, compared with $119 million, or $0.65 per share, reported in the first quarter 2001. Net income was $78 million, or $0.35 per share, in the first quarter of 2002 compared with $295 million, or $1.61 per share, for the same quarter in 2001.
The first quarter of 2001 benefited from higher investment yields, limited partnership income and net corporate reinsurance recoveries compared to the current quarter. On the other hand, catastrophe losses are lower than this time last year.
“The underlying performance of the property-casualty business units showed quarter-to-quarter improvement, apart from the impact of lower investment income and corporate covers,” Bernard L. Hengesbaugh, Chairman and CEO of the CNA insurance companies, commented.
“In our primary property & casualty business, the gross accident year combined ratio improved eight points to 104 percent in the first quarter of 2002, driven in large part by rate increases in the mid 20 percent range,” he added. “Similar trends were also evident in reinsurance. On business written by our continuing U.S. operation, CNA Re showed an underlying accident year combined ratio of 99 percent, down substantially from a year ago.”
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