CNA Financial Corporation (CNA) has reported a 293.94 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $260 million, or $0.96 a share in the quarter, compared with $66 million, or $0.24 a share for the same period last year.
Revenue during the quarter grew 6.15 percent to $2,330 million from $2,195 million in the previous year period. Net premium earned for the quarter declined 3.18 percent or $54 million to $1,645 million.
Total expenses come down
Benefits, losses and expenses for the quarter were at $1,987 million, or 120.79 percent of premium earned from $2,138 million or 125.84 percent of premium earned in the last year period. Operating income for the quarter was $343 million, compared with $57 million in the previous year period. Net investment income was at $545 million for the quarter, up 25.29 percent or $110 million from year-ago period. The company has recorded a gain on investments of $36 million in the quarter compared with a loss of $36 million for the previous year period.
"Given our focus on underwriting performance and expense discipline, I am pleased that each of our P&C segments produced underlying adjusted combined ratios equal to or better than last year's first quarter," said Dino E. Robusto, chairman and chief executive officer of CNA Financial Corporation. "Our net operating income of $235 million included favorable prior year loss reserve development from each of our P&C segments and a lower expense base than a year ago."
Operating cash flow declines
CNA Financial Corporation has generated cash of $282 million from operating activities during the quarter, down 15.57 percent or $ 52 million, when compared with the last year period. Cash flow from investing activities was $354 million for the quarter as against cash outgo of $9 million in the last year period.
The company has spent $609 million cash to carry out financing activities during the quarter as against cash outgo of $469 million in the last year period.
Assets, liabilities fall
Total assets decreased 0.54 percent or $301 million to $55,201 million on Mar. 31, 2017. On the other hand, total liabilities were at $43,508 million as on Mar. 31, 2017, down 1.19 percent or $524 million from year-ago.
Return on assets stood at 0.55 percent in the quarter, up 0.39 from 0.16 percent in the last year period. At the same time, return on equity was at 2.22 percent in the quarter, up 1.65 from 0.58 percent in the last year period.
Investments come down significantly
Investments were almost stable over the past one year at $45,279 million on Mar. 31, 2017. Meanwhile, yield on investments went up 24 basis points to 1.20 percent in the quarter. Total debt was almost stable over the past one year at $2,710 million on Mar. 31, 2017. Shareholders equity stood at $11,693 million as on Mar. 31, 2017, up 1.94 percent or $223 million from year-ago. As a result, debt to equity ratio was almost stable at 0.23 percent in the quarter, when compared with the last year period.
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