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- Third quarter net income was $213 million versus net income of $107 million in the prior year quarter, and core income was $193 million versus core income of $102 million in the prior year quarter.
- Third quarter net and core income includes an LTC GPV charge of $59 million after-tax primarily driven by actions taken on discount rate assumptions.
- Third quarter net catastrophe losses were $160 million pretax driven by severe weather related events, primarily Hurricanes Laura, Isaias and Sally, and the Midwest derecho. No change to COVID-19 catastrophe loss estimate.
- The third quarter P&C combined ratio was 100.9% compared with 97.6% in the prior year quarter, including 8.7 points of catastrophe loss impact compared with 1.8 points in the prior year quarter.
- The underlying combined ratio was 92.6% compared with 94.6% in the prior year quarter. The underlying loss ratio was 60.5% compared with 61.7% in the prior year quarter and the expense ratio was 31.8% compared with 32.5% in the prior year quarter.
- P&C segments, excluding third party captives, generated gross written premium growth of 9% and net written premium growth of 7%.
- P&C rate change increased to +12% in the third quarter.
- Net investment income of $517 million pretax includes $71 million of income from LPs and common stock.
- Board of Directors declares regular quarterly cash dividend of $0.37 per share.
CHICAGO, Nov. 2, 2020 -- CNA Financial Corporation (NYSE: CNA) today announced third quarter 2020 net income of $213 million, or $0.79 per share, versus $107 million, or $0.39 per share, in the prior year quarter. Core income for the current quarter was $193 million, or $0.71 per share, versus $102 million, or $0.37 per share, in the prior year quarter.
Our Property & Casualty segments produced core income of $247 million for the third quarter of 2020, an increase of $6 million compared to the prior year quarter primarily due to improved non-catastrophe current accident year underwriting results, higher net investment income driven by limited partnership and common stock returns and favorable net prior year loss reserve development in the current year period. These results were largely offset by higher net catastrophe losses.
Our Life & Group and Corporate & Other segments produced core losses for the third quarter of 2020 of $(35) million and $(19) million, respectively. Life & Group results include a $59 million after-tax charge related to unlocking active life reserves as a result of the gross premium valuation (GPV) completed in the quarter primarily driven by actions taken on discount rate assumptions. Life & Group results were also impacted by a $36 million after-tax increase in the structured settlement reserves and a $30 million after-tax reduction in long term care (LTC) claim reserves.
CNA Financial declared a quarterly dividend of $0.37 per share, payable December 3, 2020 to stockholders of record on November 16, 2020.
About the Company
CNA is one of the largest U.S. commercial property and casualty insurance companies. CNA provides a broad range of standard and specialized property and casualty insurance products and services for businesses and professionals in the U.S., Canada and Europe, backed by more than 120 years of experience and approximately $45 billion of invested assets. For more information, please visit CNA at www.cna.com.
Conference Call and Webcast/Presentation Information
A conference call for investors and the professional investment community will be held at 8:00 a.m. (CT) today. On the conference call will be Dino E. Robusto, Chairman and Chief Executive Officer of CNA Financial Corporation, Al Miralles, Executive Vice President and Chief Financial Officer of CNA Financial Corporation and other members of senior management. Participants can access the call by dialing (800) 289-0571, or for international callers, +1 (720) 543-0206. The call will also be broadcast live on the internet and may be accessed from the Investor Relations page of the CNA website (www.cna.com). A presentation will be posted and available on the CNA website and will provide additional insight into the results.
The call is available to the media, but questions will be restricted to investors and the professional investment community. An online replay will be available on CNA's website following the call. Financial supplement information related to the results is available on the investor relations pages of the CNA website or by contacting firstname.lastname@example.org.