10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

CNA Financial Corp. Reports Operating Results (10-Q)

July 31, 2012 | About:
10qk

10qk

18 followers
CNA Financial Corp. (CNA) filed Quarterly Report for the period ended 2012-06-30.

Cna Financial Corp has a market cap of $7.27 billion; its shares were traded at around $25.9 with a P/E ratio of 11.6 and P/S ratio of 0.8. The dividend yield of Cna Financial Corp stocks is 2.2%.

Highlight of Business Operations:

Net operating income increased $38 million for the three months ended June 30, 2012 as compared with the same period in 2011. Net operating income increased $12 million for our core segments, CNA Specialty and CNA Commercial. These results were driven by lower catastrophe losses and improved non-catastrophe current accident year underwriting results, but offset by lower net investment income. Catastrophe losses were $44 million after-tax for the three months ended June 30, 2012 as compared to catastrophe losses of $65 million after-tax for the same period in 2011. Net operating results increased $26 million for our non-core segments, primarily due to improved results in our long term care and life settlement contracts businesses, as well as a favorable change in estimate related to our allowance for uncollectible reinsurance receivables.

Net operating income increased $51 million for the six months ended June 30, 2012 as compared with the same period in 2011. Net operating income increased $25 million for our core segments, CNA Specialty and CNA Commercial. This increase was primarily driven by lower catastrophe losses, partially offset by lower net investment income. Catastrophe losses were $62 million after-tax for the six months ended June 30, 2012 as compared to catastrophe losses of $101 million after-tax for the same period in 2011. Net operating results increased $26 million for our non-core segments, due to the same reasons discussed above in the three month comparison.

CNA Commercial's average rate increased 7% for the three months ended June 30, 2012, as compared with an increase of 2% for the three months ended June 30, 2011 for the policies that renewed in each period. Retention of 77% and 79% was achieved in each respective period.

CNA Commercial's average rate increased 6% for the six months ended June 30, 2012 as compared with an increase of 1% for the six months ended June 30, 2011 for the policies that renewed in each period. Retention of 78% and 79% was achieved in each respective period.

The fixed maturity investment portfolio provided a pretax effective income yield of 5.4% and 5.5% for the six months ended June 30, 2012 and 2011. Tax-exempt municipal bonds generated $69 million and $135 million of net investment income for the three and six months ended June 30, 2012 compared with $58 million and $114 million of net investment income for the same periods in 2011.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 4.0/5 (3 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK