CNA’s second-quarter profit jumps

CNA Financial Corp. on Monday reported net income of $283 million in the second quarter, a 49% increase over the prior year quarter, as investment income soared.

The insurer’s property/casualty combined ratio worsened to 93.8% in the second quarter, compared with 91% in the 2022 second quarter, with the change largely attributed to higher catastrophe losses. 

Net written premiums in the property/casualty segment were $2.51 billion, up 9% from the prior year quarter, mainly due to renewal premium changes and improved production, Dino Robusto, chairman and CEO of CNA, said in a conference call with analysts. 

Net investment income increased 33% to $575 million.

“The pricing cycle continues to be varied by line reflecting the unique dynamics impacting loss cost trends,” Mr. Robusto said.

Mr. Robusto said CNA feels “very good” about the workers compensation portfolio despite rising medical costs, and that that line continues to be profitable. 

Even with medical costs up in worked comp, “they’re still well below our baked-in assumptions, which we have never lowered notwithstanding the benign trends for many years.”