CNA Surety Corp. reported net income for the fourth quarter of 2010 of $54.5 million compared to $49.3 million for the same period in 2009. For the year ended Dec. 31, 2010, net income was $134.4 million compared to $117.9 million.
During the fourth quarter, the firm’s majority owner, CNA Financial Corp., proposed to purchase the remaining outstanding shares of CNA Surety that it does not currently own for $22 per share. A special committee of the board of directors of CNA Surety has rejected that offer but said it would consider a “proposal that provides full and fair value to the minority shareholders of CNA Surety and reflects the meaningful benefits that would accrue to CNA Financial as a result of full ownership of the company.”
The recent financial results for CNA Surety results also featured:
• Favorable loss reserve development of $54.3 million in the fourth quarter of 2010 and $76.3 million for the year ended December 31, 2010.
• A combined ratio of 34.0 percent in the quarter; 65.3 percent for the year.
• Operating cash flow of $35.0 million in the quarter and $142.1 million for the year.
• Gross written premiums increased 2.0 percent for the quarter; 0.4 percent for the year.
• Net written premiums increased 2.9 for the quarter; 1.3 percent for the year, reflecting an increase in gross written premiums and lower reinsurance costs.
“With these very strong fourth quarter results, we cap off our fifth consecutive year of record earnings,” said John F. Welch, president and CEO
CNA Surety Corp. is the largest publicly traded surety company in the country. Through its principal subsidiary, Western Surety Co., it provides surety and fidelity bonds in all 50 states through 37,000 independent agencies.
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