Chicago-based CNA Financial Corporation reported net income for the first quarter of 2003 of $83 million, or $0.30 per share, as compared with net income of $20 million, or $0.09 per share, for the same period in 2002. Net operating income from continuing operations was $132 million for the first quarter of 2003 as compared with $110 million in the first quarter of 2002.
The year over year improvement in net operating income was primarily due to an approximate 5-point improvement in the current net accident year loss ratio for the primary property and casualty businesses.
During the first quarter, the company continued to achieve strong premium rate increases and solid production of new business. These improvements were partially offset by unfavorable prior year net reserve development, principally within Standard Lines, and decreased operating results for Life Operations.
“We are pleased with another quarter of steady progress,” Stephen Lilienthal, chairman and CEO of the CNA insurance companies, said. “Our Property & Casualty segments, including CNA Re, came through with top-line growth, a good flow of new business and improved loss ratios. Our Life and Group businesses remained profitable, with good prospects for profitable growth even as we curtail new business in individual long term care.”
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