CNA Financial Corporation (CNA) has reported a 92.70 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $343 million, or $1.26 a share in the quarter, compared with $178 million, or $0.66 a share for the same period last year.
Revenue during the quarter grew 13.01 percent to $2,433 million from $2,153 million in the previous year period. Net premium earned for the quarter went up marginally by 0.91 percent or $16 million to $1,767 million.
Total expenses move up marginally
Benefits, losses and expenses for the quarter were at $1,958 million, or 110.81 percent of premium earned from $1,920 million or 109.65 percent of premium earned in the last year period. Operating income for the quarter was $475 million, compared with $233 million in the previous year period.
Net investment income was at $524 million for the quarter, up 48.02 percent or $170 million from year-ago period. The company has recorded a gain on investments of $46 million in the quarter compared with a loss of $49 million for the previous year period.
"CNA had a strong quarter highlighted by a P&C combined ratio of 90.4%, reflecting our steady underwriting performance and continued favorable reserve development," said Thomas F. Motamed, chairman and chief executive officer of CNA Financial Corporation. "Our disciplined actions have sustained an underlying loss ratio in line with where we ended 2015, despite challenging market conditions."
Operating cash flow improves
CNA Financial Corporation has generated cash of $1,120 million from operating activities during the nine month period, up 7.18 percent or $75 million, when compared with the last year period.
The company has spent $604 million cash to meet investing activities during the nine month period as against cash outgo of $254 million in the last year period.
The company has spent $608 million cash to carry out financing activities during the nine month period as against cash outgo of $739 million in the last year period.
Liabilities outpace assets growth
Total assets increased 3.73 percent or $2,047 million to $56,859 million on Sep. 30, 2016. On the other hand, total liabilities were at $44,664 million as on Sep. 30, 2016, up 4.98 percent or $2,117 million from year-ago.
Return on assets stood at 0.67 percent in the quarter, up 0.28 from 0.40 percent in the last year period. At the same time, return on equity was at 2.81 percent in the quarter, up 1.36 from 1.45 percent in the last year period.
Investments move up marginally
Investments stood at $46,980 million as on Sep. 30, 2016, up 3.67 percent or $1,662 million from year-ago. Meanwhile, yield on investments went up 33 basis points to 1.12 percent in the quarter.
Meanwhile, reinsurance recoverables moved up 1.91 percent or $86 million over the year to $4,577 million on Sep. 30, 2016.
Total debt was at $2,709 million as on Sep. 30, 2016, up 5.78 percent or $148 million from year-ago. Shareholders equity stood at $12,195 million as on Sep. 30, 2016, down 0.57 percent or $70 million from year-ago. As a result, debt to equity ratio went up 1 basis points to 0.22 percent in the quarter from 0.21 percent in the last year period.
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