NU Online News Service, May 9, 12:15 p.m. – CNA Financial Corp., Chicago, is reporting $78 million in net income for the first quarter on $3.4 billion in revenue, down from $295 million in net income on $3.6 billion in revenue for the first quarter of 2001.
Net operating income from continuing operations, which excludes investment losses and other gains and charges, decreased to $111 million, from $119 million.
Net results for the latest quarter were down because of lower investment yields, lower limited partnership income and lower reinsurance recoveries, CNA says. On the other hand, catastrophe losses were also lower.
CNA sells group insurance and life insurance as well as property-casualty insurance.
The group insurance unit brought in $17 million in operating income for the latest quarter on $938 million in premium revenue, up from $15 million in operating income on $818 million in revenue.
The life unit brought in $35 million in operating income on $240 million in premium revenue, compared with $42 million in operating income on $215 million in revenue.
“Life and long-term care sales are ahead of last year, and we are building on this momentum with a series of new product introductions,” says Bernard L. Hengesbaugh, CNA’s chairman.