Bloomberg News

CNA Falls Most Since 2011 on Commercial Insurance Losses (1)

April 28, 2014

CNA Financial Corp. (CNA:US), the insurer majority owned by Loews Corp. (L:US), fell the most since 2011 after profit missed estimates as the company faced higher-than-expected costs tied to commercial vehicles.

CNA slumped $2.95, or 6.9 percent, to $39.76 at 4:02 p.m. in New York. Loews slipped 0.9 percent to $43.76.

First-quarter net income (CNA:US) dropped to $13 million from $250 million, on costs tied to the divestiture of an annuity and pension deposit business, the Chicago-based company said in a statement today. Operating profit was 70 cents a share, 13 cents less than the average estimate of five analysts surveyed by Bloomberg. CNA spent $1.10 in claims and expenses for every dollar of premium revenue at the commercial insurance unit, up from $1.07 a year earlier.

“Our results in certain parts of commercial lines are not what we expected,” Chief Financial Officer Craig Mense said in a conference call. “Continued loss-cost pressure on auto and certain classes within our small-business segment slowed our overall progress.”

CNA has declined 5 percent this year, while New York-based Loews has dropped 9.3 percent since Dec. 31.

To contact the reporter on this story: Craig Giammona in New York at cgiammona@bloomberg.net

To contact the editors responsible for this story: Dan Kraut at dkraut2@bloomberg.net Peter Eichenbaum


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Companies Mentioned

  • CNA
    (CNA Financial Corp)
    • $38.9 USD
    • -0.03
    • -0.08%
  • L
    (Loews Corp)
    • $42.39 USD
    • 0.02
    • 0.05%
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