NU Online News Service, May 9, 2003, 3:25 p.m. EDT – CNA Financial Corp., Chicago, reports that it will be curtailing sales of individual long-term care insurance because “unfavorable long-term morbidity” contributed to an operating loss at its life insurance unit.
The life insurance unit lost $23 million on $256 million in net earned premiums. During the first quarter of 2002, the unit lost $4 million on $240 million in net earned premiums.
The company as a whole is reporting $83 million in net income for the first quarter on $2.8 billion in revenue, compared with $20 million in net income on $3.4 billion in revenue for the first quarter of 2002.
Net results for the latest quarter include $78 million in losses realized on investments sold, written down or written off during the quarter, CNA says.
Revenue was down partly because CNA changed the way it accounts for revenue from life settlement contracts, the company says.