CNA Financial announced second quarter 2022 net income of $205 million, or $0.75 per share, versus $368 million, or $1.35 per share, in the prior year quarter.
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Core income for the quarter was $245 million, or $0.90 per share, versus $341 million, or $1.25 per share, in the prior year quarter.
Net investment losses for the quarter were $40 million, which were primarily driven by mark to market losses on non-redeemable preferred stock, compared to net investment gains of $27 million in the prior year quarter.
Other highlights
Net income of $205 million, which includes $40 million of net investment losses, versus net income of $368 million, which includes $27 million of net investment gains in the prior year quarter.
Core income of $245 million versus $341 million in the prior year quarter reflects lower investment income from LPs and common stock, partially offset by higher underwriting income and higher income from fixed income securities.
P&C core income of $317 million versus $351 million in the prior year quarter reflects lower investment income from LPs and common stock, partially offset by pretax underwriting income of $185 million, up 64%, and higher income from fixed income securities.
Life & Group core income of $6 million versus $43 million in the prior year quarter reflects lower investment income from LPs.
Corporate & Other core loss of $(78) million versus core loss of $(53) million in the prior year quarter, includes a $51 million after-tax charge related to unfavorable prior period development largely associated with legacy mass tort abuse claims, including the recent Diocese of Rochester proposed settlement.
Net investment income of $432 million pretax includes a $16 million increase from fixed income securities to $451 million, offset by a $171 million decline from LPs and common stock.
The P&C combined ratio was 91.0%, the lowest in over five years, compared with 94.0% in the prior year quarter, including 1.8 points of catastrophe loss impact compared with 2.8 points in the prior year quarter.
The underlying combined ratio was 90.8%,the lowest on record, compared with 91.4% in the prior year quarter. The underlying loss ratio was 60.0% and the expense ratio was 30.5%.
P&C segments, excluding third party captives, generated gross written premium growth of 17%. Net written premium growth was 20% in the quarter. Excluding the one-time catch-up related to the addition of a property quota share reinsurance treaty in the prior period, net written premiums grew 13%.
P&C written rate of +6% and earned rate of +8% for the quarter.
Book value per share excluding AOCI of $45.06, a 4% increase from year-end 2021 adjusting for $2.80 of dividends per share; book value per share of $35.06 was also impacted by a decrease in AOCI reflecting the effect of higher interest rates on fixed income net unrealized gains and losses.
Board of Directors declares regular quarterly cash dividend of $0.40 per share. ■