CNA Doubles 3Q Earnings as Catastrohies Fall

By Matt Egan Features FOXBusiness

Boosted by investment gains and lower catastrophe losses, insurer CNA (CNA) surpassed forecasts on Monday by more than doubling third-quarter earnings.

Continue Reading Below

Shares of the Chicago-based insurance holding company were inactive Monday morning as U.S. markets were shut down due to the impact of Hurricane Sandy.

CNA said it earned $221 million, or 82 cents a share, last quarter, compared with a profit of $75 million, or 28 cents a share, a year earlier. Excluding one-time items, the company earned 80 cents a share easily trumping the Street’s view of 68 cents.

“We are pleased to report our third quarter results which include a much improved level of earnings and a continuation of favorable rate and retention trends in our core P&C business,” CEO Thomas Motamed said in a statement.

CNA said its pretax net investment income for the third quarter surged by $207 million due to a “significant increase” in limited partnership investment results.

At the same time, catastrophe losses plunged to $18 million after taxes from $32 million in the same period a year earlier.

Continue Reading Below

CNA also said its results were helped by the acquisition of the Hardy Group, which posted net earned income of $64 million.

Shares of CNA have gained 7.4% so far this year, underperforming the S&P 500 and rivals like Loews (L).