NU Online News Service, Nov. 1, 1:16 p.m. – CNA Financial Corp., Chicago, is reporting a $155 million net loss for the third quarter on $3.1 billion in revenue, compared with $550 million in net income on $4.3 billion in revenue for the third quarter of 2000.
Revenue is down partly because revenue figures for the third quarter of 2000 included $605 million in one-time investment gains.
The latest income statement also includes $304 million in costs resulting from the Sept. 11 attacks.
CNA sells property-casualty insurance as well as group benefits, individual life insurance and pension products. The property-casualty operations bore most of the brunt of the Sept. 11 claims.
The group benefits unit, which accounts for one-third of company revenue, is reporting only $52 million in Sept. 11 claims costs, and the individual life unit, which accounts for about one-quarter of company revenue, is reporting only $14 million in Sept. 11 claims costs.
Because of the Sept. 11 attacks, the group benefits unit is reporting a total operating loss of $35 million on $980 million in revenue for the third quarter, down from $14 million on $1 billion in revenue. Core operating profits were slightly higher because CNA has gotten rid of some unprofitable group benefits operations, the company says.
The life unit is reporting $4 million in net operating income on $438 in revenue, compared with $49 million in net operating income on $442 in revenue. Core operating profits were weaker because the performance of products linked to the stock market was down, and the death rate for holders of univeral life policies was up, CNA reports.