NU Online News Service, Feb. 14, 11:54 a.m. – CNA Financial Corp., Chicago, is reporting a $22 million net loss for the fourth quarter of 2001 on $3.7 billion in revenue, compared with $193 million in net income on $3.9 billion in revenue for the fourth quarter of 2000.
Net results for the latest quarter include $189 million in restructuring costs and $52 million in losses related to Enron Corp., Houston, but they also include $325 million in recognized investment gains.
The net operating loss, which excludes the unusual gains and charges, was $290 million, down from net operating income of $114 million for the fourth quarter of 2000.
CNA sells life insurance, long-term care insurance and other life and health products as well as property-casualty insurance and reinsurance.
The group life and health unit is reporting $17 million in net operating income on $879 million in premium revenue, compared with $11 million in net operating income on $967 million in premium revenue.
New group business was weak in the fourth quarter because of the lingering effects of the Sept. 11, 2001, attacks, CNA says.
“Many companies delayed decisions to move their group business,” CNA says. “This impact was mitigated by strong retention in our own book of business.”
The individual life and health unit recorded a $7 million net operating loss for the fourth quarter on $214 million in premium revenue, compared with $40 million in net operating income on $202 million in revenue for the comparable quarter in 2000.
Individual life results include $53 million in restructuring charges; losses associated with CNA’s decision to get out of the individual annuity business; and the fact that some of the insureds involved with CNA’s viatical settlement business lived longer than expected.