CNA Financial Corp. recorded a first quarter 2020 net loss of $61 million, and core income of $108 million. The insurer said results for the quarter reflected financial market volatility amid the events of COVID-19.
The results included net investment losses of $169 million and a decrease in net investment income to $279 million.
Property/Casualty Operations combined ratio for the first quarter was 97.5 and the underlying combined ratio was 93.9. The combined ratio includes charges of $15 million pretax associated with COVID-19.
The U.S. P&C segments, excluding third party captives, generated gross written premium growth of 8% and net written premium growth of 6%. Excluding third party captives, gross written premiums grew 6% and net written premiums grew 3% for P&C overall.
Catastrophe losses in the first quarter of 2020 include $13 million for COVID-19 claims related activity. Expenses include a $2 million increase in the allowance for uncollectible insurance receivables related to COVID-19.
Dino E. Robusto, chairman and chief executive officer, noted that the first quarter results reflected strong underwriting performance, but were adversely impacted by disruption in the financial markets due to COVID-19, which led to unfavorable returns on alternative investments and equity holdings. CNA’s fixed income investments generated steady earnings in line with the last four quarters.
“As we look ahead at these unprecedented and challenging times our thoughts go out to those most affected by the COVID-19 pandemic, and we are tremendously grateful for all the medical professionals and first responders who put their lives on the line every day,” Robusto said.
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