CNA FINANCIAL CORPORATION |
(Exact name of registrant as specified in its charter) |
Delaware | 1-5823 | 36-6169860 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation) | File Number) | Identification No.) |
333 S. Wabash, Chicago, Illinois | 60604 | |
(Address of principal executive offices) | (Zip Code) |
NOT APPLICABLE |
(Former name or former address, if changed since last report.) |
CNA Financial Corporation | ||
(Registrant) | ||
Date: August 1, 2011 | By | /s/ D. Craig Mense |
(Signature) | ||
D. Craig Mense Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | |
CNA Financial Corporation press release, issued August 1, 2011, providing information on the second quarter 2011 results of operations. | ||
CNA Financial Corporation financial supplement, posted on its website August 1, 2011, providing supplemental financial information on the second quarter 2011. |
MEDIA: | ANALYSTS: | |
Katrina W. Parker, 312/822-5167 | Nancy M. Bufalino, 312/822-7757 | |
Sarah J. Pang, 312/822-6394 | Marie Hotza, 312/822-4278 | |
David C. Adams, 312/822-2183 |
Results for the Three Months Ended June 30 (a) | Results for the Six Months Ended June 30 (a) | |||||||||||||||
($ millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Net operating income | $ | 116 | $ | 269 | $ | 332 | $ | 492 | ||||||||
Net realized investment gains | 10 | 13 | 18 | 35 | ||||||||||||
Net income from continuing operations | 126 | 282 | 350 | 527 | ||||||||||||
Net income (loss) from discontinued operations | — | 1 | (1 | ) | 1 | |||||||||||
Net income | $ | 126 | $ | 283 | $ | 349 | $ | 528 |
(a) | References to net operating income (loss), net realized investment gains (losses), net income (loss) from continuing operations and net income (loss) used in this press release reflect amounts attributable to CNA, unless otherwise noted. Management utilizes the net operating income financial measure to monitor the Company's operations. Please refer to Note N of the Consolidated Financial Statements within CNA's Annual Report on Form 10-K for the year ended December 31, 2010 for further discussion of this measure. |
Earnings Per Share Attributable to Common Stockholders | |||||||||||||||
Results for the Three Months Ended June 30 | Results for the Six Months Ended June 30 | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Net operating income | $ | 0.43 | $ | 1.00 | $ | 1.23 | $ | 1.83 | |||||||
2008 Senior Preferred dividend | — | (0.09 | ) | — | (0.19 | ) | |||||||||
Net operating income attributable to CNA common stockholders | 0.43 | 0.91 | 1.23 | 1.64 | |||||||||||
Net realized investment gains | 0.04 | 0.05 | 0.07 | 0.13 | |||||||||||
Net income from continuing operations | 0.47 | 0.96 | 1.30 | 1.77 | |||||||||||
Net income (loss) from discontinued operations | — | — | — | 0.01 | |||||||||||
Net income attributable to CNA common stockholders | $ | 0.47 | $ | 0.96 | $ | 1.30 | $ | 1.78 |
• | Net written premiums increased $36 million for the second quarter of 2011 as compared with the same period in 2010. The increase in net written premiums was primarily driven by new business. Average rate was flat for the second quarter of 2011, as compared to a decrease of 2% for the same period in 2010 for the policies that renewed in each period. Retention of 85% was achieved in each period. |
• | Net income decreased $70 million and net operating income decreased $54 million for the second quarter of 2011 as compared with the same period in 2010. The decrease in net operating income was primarily due to a lower level of favorable net prior year development. |
• | The combined ratio increased 13.2 points for the second quarter of 2011 as compared with the same period in 2010. The loss ratio increased 12.6 points, primarily due to a lower level of favorable net prior year development and the impact of a higher current accident year loss ratio. The expense ratio increased 1.2 points, primarily due to higher underwriting expenses as we continued our investments across this business segment. |
• | CNA Specialty produced second quarter combined ratios of 92.2% and 79.0% in 2011 and 2010. Excluding the impacts of favorable reserve development and catastrophe losses, our combined ratios were 99.3% and 97.1% for the same comparable periods. |
• | Net written premiums increased $42 million for the second quarter of 2011 as compared with the same period in 2010. This increase was primarily driven by new business across several lines of business as well as continued positive rate impacts. Average rate increased 2% for the second quarter of 2011 and 2010 for the policies that renewed in each period. Retention of 78% was achieved in each period. |
• | Net income decreased $64 million and net operating income decreased $86 million for the second quarter of 2011 as compared with the same period in 2010. The decrease in net operating income was primarily due to a lower level of favorable net prior year development and higher catastrophe losses, partially offset by improved non-catastrophe current accident year underwriting results. |
• | The combined ratio increased 19.3 points for the second quarter of 2011 as compared with the same period in 2010. The loss ratio increased 19.8 points, primarily due to a lower level of favorable net prior year development and increased catastrophe losses, partially offset by an improved non-catastrophe current accident year loss ratio. |
• | CNA Commercial produced second quarter combined ratios of 117.7% and 98.4% in 2011 and 2010. Excluding the impacts of favorable reserve development and catastrophe losses, our combined ratios were 107.0% and 110.7% for the same comparable periods. |
• | Net loss decreased $1 million for the second quarter of 2011 as compared with the same period in 2010. This improvement was primarily due to lower expenses and improved investment results, substantially offset by unfavorable claim experience in our long term care business and less favorable performance on our remaining pension deposit business. |
• | Net results decreased $23 million for the second quarter of 2011 as compared with the same period in 2010, driven by lower net investment income partially offset by lower net incurred claims, both resulting from the Loss Portfolio Transfer consummated in the third quarter of 2010. Under the Loss Portfolio Transfer, approximately $1.6 billion of net A&EP claim and claim adjustment expense reserves were ceded under a retroactive reinsurance agreement. As a result of that transaction, the investment income allocated to the Corporate & Other Non-Core segment decreased because of the lower net reserve base and associated risk capital. Claim adjustment expenses are lower because the counterparty to the Loss Portfolio Transfer is responsible for the A&EP claims handling. Additionally, the decrease in net results was driven by decreased net realized investment results and higher interest expense. The increase in interest expense primarily relates to the use of debt to fund a portion of the 2010 redemption of our preferred stock. These unfavorable impacts were partially offset by increased favorable net prior year development. |
Segment Results for the Three Months Ended June 30, 2011 | |||||||||||||||||||||||
($ millions) | CNA Specialty | CNA Commercial | Total P&C Operations | Life & Group Non-Core | Corporate & Other Non-Core | Total | |||||||||||||||||
Net operating income (loss) | $ | 114 | $ | 39 | $ | 153 | $ | (19 | ) | $ | (18 | ) | $ | 116 | |||||||||
Net realized investment gains (losses) | 5 | 8 | 13 | 1 | (4 | ) | 10 | ||||||||||||||||
Net income (loss) from continuing operations | $ | 119 | $ | 47 | $ | 166 | $ | (18 | ) | $ | (22 | ) | $ | 126 |
Segment Results for the Three Months Ended June 30, 2010 | |||||||||||||||||||||||
($ millions) | CNA Specialty | CNA Commercial | Total P&C Operations | Life & Group Non-Core | Corporate & Other Non-Core | Total | |||||||||||||||||
Net operating income (loss) | $ | 168 | $ | 125 | $ | 293 | $ | (18 | ) | $ | (6 | ) | $ | 269 | |||||||||
Net realized investment gains (losses) | 21 | (14 | ) | 7 | (1 | ) | 7 | 13 | |||||||||||||||
Net income (loss) from continuing operations | $ | 189 | $ | 111 | $ | 300 | $ | (19 | ) | $ | 1 | $ | 282 |
Segment Results for the Six Months Ended June 30, 2011 | |||||||||||||||||||||||
($ millions) | CNA Specialty | CNA Commercial | Total P&C Operations | Life & Group Non-Core | Corporate & Other Non-Core | Total | |||||||||||||||||
Net operating income (loss) | $ | 244 | $ | 170 | $ | 414 | $ | (37 | ) | $ | (45 | ) | $ | 332 | |||||||||
Net realized investment gains (losses) | 10 | 18 | 28 | (2 | ) | (8 | ) | 18 | |||||||||||||||
Net income (loss) from continuing operations | $ | 254 | $ | 188 | $ | 442 | $ | (39 | ) | $ | (53 | ) | $ | 350 |
Segment Results for the Six Months Ended June 30, 2010 | |||||||||||||||||||||||
($ millions) | CNA Specialty | CNA Commercial | Total P&C Operations | Life & Group Non-Core | Corporate & Other Non-Core | Total | |||||||||||||||||
Net operating income (loss) | $ | 296 | $ | 223 | $ | 519 | $ | (17 | ) | $ | (10 | ) | $ | 492 | |||||||||
Net realized investment gains (losses) | 30 | — | 30 | (5 | ) | 10 | 35 | ||||||||||||||||
Net income (loss) from continuing operations | $ | 326 | $ | 223 | $ | 549 | $ | (22 | ) | $ | — | $ | 527 |
Property & Casualty Operations Gross Written Premiums | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
($ millions) | 2011 | 2010 | 2011 | 2010 | |||||||||||
CNA Specialty | $ | 1,079 | $ | 1,043 | $ | 2,209 | $ | 2,093 | |||||||
CNA Commercial | 965 | 936 | 1,858 | 1,848 | |||||||||||
Total P&C Operations | $ | 2,044 | $ | 1,979 | $ | 4,067 | $ | 3,941 |
Property & Casualty Operations Net Written Premiums | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
($ millions) | 2011 | 2010 | 2011 | 2010 | |||||||||||
CNA Specialty | $ | 683 | $ | 647 | $ | 1,422 | $ | 1,303 | |||||||
CNA Commercial | 880 | 838 | 1,708 | 1,667 | |||||||||||
Total P&C Operations | $ | 1,563 | $ | 1,485 | $ | 3,130 | $ | 2,970 |
Property & Casualty Calendar Year Loss Ratios | |||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||
CNA Specialty | 60.8 | % | 48.2 | % | 62.5 | % | 54.8 | % | |||
CNA Commercial | 80.7 | % | 60.9 | % | 77.9 | % | 67.6 | % | |||
Total P&C Operations | 71.3 | % | 55.1 | % | 70.8 | % | 61.8 | % |
Property & Casualty Calendar Year Combined Ratios | |||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||
CNA Specialty | 92.2 | % | 79.0 | % | 93.5 | % | 85.7 | % | |||
CNA Commercial | 117.7 | % | 98.4 | % | 112.6 | % | 104.1 | % | |||
Total P&C Operations | 105.7 | % | 89.5 | % | 103.8 | % | 95.8 | % |
CNA Specialty Effect of Catastrophe Impacts and Development-Related Items | |||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||
Combined ratio excluding the effect of catastrophe impacts and development-related items | 99.3 | % | 97.1 | % | 98.4 | % | 96.8 | % | |||
Effect of catastrophe impacts | 0.6 | % | 0.5 | % | 0.5 | % | 0.4 | % | |||
Effect of development-related items | (7.7 | )% | (18.6 | )% | (5.4 | )% | (11.5 | )% | |||
Combined ratio | 92.2 | % | 79.0 | % | 93.5 | % | 85.7 | % |
CNA Commercial Effect of Catastrophe Impacts and Development-Related Items | |||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||
Combined ratio excluding the effect of catastrophe impacts and development-related items | 107.0 | % | 110.7 | % | 104.7 | % | 108.5 | % | |||
Effect of catastrophe impacts | 12.5 | % | 5.7 | % | 9.5 | % | 5.2 | % | |||
Effect of development-related items | (1.8 | )% | (18.0 | )% | (1.6 | )% | (9.6 | )% | |||
Combined ratio | 117.7 | % | 98.4 | % | 112.6 | % | 104.1 | % |
Property & Casualty Operations Effect of Catastrophe Impacts and Development-Related Items | |||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||
Combined ratio excluding the effect of catastrophe impacts and development-related items | 103.6 | % | 104.6 | % | 101.9 | % | 103.4 | % | |||
Effect of catastrophe impacts | 6.9 | % | 3.3 | % | 5.3 | % | 3.0 | % | |||
Effect of development-related items | (4.8 | )% | (18.4 | )% | (3.4 | )% | (10.6 | )% | |||
Combined ratio | 105.7 | % | 89.5 | % | 103.8 | % | 95.8 | % |
Page | |
• | Collectively, CNA Financial Corporation (CNAF) and its controlled subsidiaries are referred to as CNA or the Company. |
• | P&C Operations includes CNA Specialty and CNA Commercial. |
• | Life & Group Non-Core segment primarily includes the results of the life and group lines of business that are in run-off. |
• | Corporate & Other Non-Core segment primarily includes certain corporate expenses including interest on corporate debt and the results of certain property and casualty business in run-off, including CNA Re and asbestos and environmental pollution (A&EP). Intersegment eliminations are also included in this segment. |
• | Management utilizes the net operating income financial measure to monitor the Company’s operations. Please refer to Note N of the Consolidated Financial Statements within the 2010 Form 10-K for further discussion of this measure. |
• | In evaluating the results of CNA Specialty and CNA Commercial, management utilizes the combined ratio, the loss ratio, the expense ratio and the dividend ratio. These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America. The loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums. The expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums. The dividend ratio is the ratio of policyholders' dividends incurred to net earned premiums. The combined ratio is the sum of the loss, expense and dividend ratios. The statutory expense ratio reported on page 14 is the percentage of acquisition and underwriting expenses to net written premiums in accordance with statutory accounting practices. |
• | Limited partnerships are a relatively small portion of CNA's overall investment portfolio. The majority of our limited partnership investments employ strategies that generate returns through investing in securities that are marketable while engaging in various management techniques primarily in public fixed income and equity markets. The risks associated with limited partnership investments may include losses due to leveraging, short-selling, derivatives or other speculative investment practices. The use of leverage increases volatility generated by the underlying investment strategies. |
• | Certain immaterial differences are due to rounding. |
• | N/M = Not Meaningful |
• | FY = Full Year |
PERIODS ENDED JUNE 30 | Three Months | Fav / (Unfav) | Six Months | Fav / (Unfav) | |||||||||||||||||||
(In millions) | 2011 | 2010 | % Change | 2011 | 2010 | % Change | |||||||||||||||||
STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Net earned premiums | $ | 1,595 | $ | 1,608 | (1 | ) | % | $ | 3,210 | $ | 3,223 | — | % | ||||||||||
Net investment income | 517 | 521 | (1 | ) | 1,137 | 1,111 | 2 | ||||||||||||||||
Net realized investment gains (losses), net of participating policyholders' interests: | |||||||||||||||||||||||
Other-than-temporary impairment (OTTI) losses | (41 | ) | (58 | ) | 29 | (61 | ) | (148 | ) | 59 | |||||||||||||
Portion of OTTI recognized in Other comprehensive income (loss) | (21 | ) | 1 | N/M | (42 | ) | 31 | N/M | |||||||||||||||
Net OTTI losses recognized in earnings | (62 | ) | (57 | ) | (9 | ) | (103 | ) | (117 | ) | 12 | ||||||||||||
Other net realized investment gains (losses) | 77 | 86 | (10 | ) | 131 | 180 | (27 | ) | |||||||||||||||
Net realized investment gains (losses), net of participating policyholders' interests | 15 | 29 | (48 | ) | 28 | 63 | (56 | ) | |||||||||||||||
Other revenues | 71 | 75 | (5 | ) | 138 | 151 | (9 | ) | |||||||||||||||
Total revenues | 2,198 | 2,233 | (2 | ) | 4,513 | 4,548 | (1 | ) | |||||||||||||||
Claims, Benefits and Expenses: | |||||||||||||||||||||||
Insurance claims and policyholders' benefits | 1,367 | 1,147 | (19 | ) | 2,731 | 2,455 | (11 | ) | |||||||||||||||
Amortization of deferred acquisition costs | 350 | 345 | (1 | ) | 695 | 687 | (1 | ) | |||||||||||||||
Other operating expenses | 259 | 258 | — | 484 | 530 | 9 | |||||||||||||||||
Interest | 43 | 37 | (16 | ) | 89 | 73 | (22 | ) | |||||||||||||||
Total claims, benefits and expenses | 2,019 | 1,787 | (13 | ) | 3,999 | 3,745 | (7 | ) | |||||||||||||||
Income (loss) from continuing operations before income tax | 179 | 446 | (60 | ) | 514 | 803 | (36 | ) | |||||||||||||||
Income tax (expense) benefit | (47 | ) | (145 | ) | 68 | (149 | ) | (247 | ) | 40 | |||||||||||||
Income (loss) from continuing operations, net of tax | 132 | 301 | (56 | ) | 365 | 556 | (34 | ) | |||||||||||||||
Income (loss) from discontinued operations, net of tax | — | 1 | N/M | (1 | ) | 1 | N/M | ||||||||||||||||
Net income (loss) | 132 | 302 | (56 | ) | 364 | 557 | (35 | ) | |||||||||||||||
Net (income) loss attributable to noncontrolling interests | (6 | ) | (19 | ) | 68 | (15 | ) | (29 | ) | 48 | |||||||||||||
Net income (loss) attributable to CNA | $ | 126 | $ | 283 | (55 | ) | % | $ | 349 | $ | 528 | (34 | ) | % |
PERIODS ENDED JUNE 30 | Three Months | Six Months | |||||||||||||||
(In millions, except per share data) | 2011 | 2010 | 2011 | 2010 | |||||||||||||
COMPONENTS OF INCOME (LOSS) ATTRIBUTABLE TO CNA COMMON STOCKHOLDERS | |||||||||||||||||
Net operating income (loss) from continuing operations attributable to CNA | $ | 116 | $ | 269 | $ | 332 | $ | 492 | |||||||||
Less: 2008 Senior Preferred dividend | — | (25 | ) | — | (50 | ) | |||||||||||
Net operating income (loss) from continuing operations attributable to CNA common stockholders | 116 | 244 | 332 | 442 | |||||||||||||
Net realized investment gains (losses) attributable to CNA common stockholders | 10 | 13 | 18 | 35 | |||||||||||||
Income (loss) from continuing operations attributable to CNA common stockholders | 126 | 257 | 350 | 477 | |||||||||||||
Income (loss) from discontinued operations attributable to CNA common stockholders | — | 1 | (1 | ) | 1 | ||||||||||||
Income (loss) attributable to CNA common stockholders | $ | 126 | $ | 258 | $ | 349 | $ | 478 | |||||||||
BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE | |||||||||||||||||
Net operating income (loss) from continuing operations attributable to CNA | $ | 0.43 | $ | 1.00 | $ | 1.23 | $ | 1.83 | |||||||||
Less: 2008 Senior Preferred dividend | — | (0.09 | ) | — | (0.19 | ) | |||||||||||
Net operating income (loss) from continuing operations attributable to CNA common stockholders | 0.43 | 0.91 | 1.23 | 1.64 | |||||||||||||
Net realized investment gains (losses) attributable to CNA common stockholders | 0.04 | 0.05 | 0.07 | 0.13 | |||||||||||||
Income (loss) from continuing operations attributable to CNA common stockholders | 0.47 | 0.96 | 1.30 | 1.77 | |||||||||||||
Income (loss) from discontinued operations attributable to CNA common stockholders | — | — | — | 0.01 | |||||||||||||
Basic and diluted earnings (loss) per share attributable to CNA common stockholders | $ | 0.47 | $ | 0.96 | $ | 1.30 | $ | 1.78 | |||||||||
WEIGHTED AVERAGE OUTSTANDING COMMON STOCK AND COMMON STOCK EQUIVALENTS | |||||||||||||||||
Basic | 269.3 | 269.1 | 269.3 | 269.1 | |||||||||||||
Diluted | 269.6 | 269.3 | 269.6 | 269.3 | |||||||||||||
RETURN ON EQUITY | |||||||||||||||||
Net income (loss) attributable to CNA (1) | 4.4 | % | 9.8 | % | 6.2 | % | 9.4 | % | |||||||||
Net operating income (loss) from continuing operations attributable to CNA (2) | 4.2 | 9.5 | 6.2 | 8.8 |
(In millions, except share data) | June 30, 2011 | December 31, 2010 | |||||
Total assets | $ | 55,774 | $ | 55,331 | |||
Insurance reserves | 37,792 | 37,590 | |||||
Debt | 2,648 | 2,651 | |||||
Total liabilities | 44,025 | 43,807 | |||||
Accumulated other comprehensive income (loss) | 730 | 326 | |||||
Noncontrolling interests | 147 | 570 | |||||
Total CNA stockholders' equity | 11,602 | 10,954 | |||||
Book value per common share | $ | 43.09 | $ | 40.70 | |||
Book value per common share excluding AOCI | $ | 40.37 | $ | 39.49 | |||
Outstanding shares of common stock (in millions of shares) | 269.3 | 269.1 |
THREE MONTHS ENDED JUNE 30 (In millions) | 2011 | 2010 | |||||
Net cash flows provided (used) by operating activities (1) | $ | 300 | $ | 217 | |||
Net cash flows provided (used) by investing activities | 171 | (154 | ) | ||||
Net cash flows provided (used) by financing activities | (468 | ) | (86 | ) | |||
Net cash flows provided (used) by operating, investing and financing activities | $ | 3 | $ | (23 | ) |
SIX MONTHS ENDED JUNE 30 (In millions) | 2011 | 2010 | |||||
Net cash flows provided (used) by operating activities (1) | $ | 412 | $ | 581 | |||
Net cash flows provided (used) by investing activities | 97 | (523 | ) | ||||
Net cash flows provided (used) by financing activities | (504 | ) | (124 | ) | |||
Net cash flows provided (used) by operating, investing and financing activities | $ | 5 | $ | (66 | ) |
THREE MONTHS ENDED JUNE 30, 2011 (In millions) | CNA Specialty | CNA Commercial | P&C Operations | Life & Group Non-Core | Corporate & Other Non-Core | Total Operations | |||||||||||||||||
Claim & claim adjustment expense reserves, beginning of period | |||||||||||||||||||||||
Gross | $ | 6,888 | $ | 12,383 | $ | 19,271 | $ | 2,757 | $ | 3,324 | $ | 25,352 | |||||||||||
Ceded | 892 | 1,815 | 2,707 | 634 | 2,623 | 5,964 | |||||||||||||||||
Net | 5,996 | 10,568 | 16,564 | 2,123 | 701 | 19,388 | |||||||||||||||||
Net incurred claim & claim adjustment expenses | 418 | 622 | 1,040 | 159 | (6 | ) | 1,193 | ||||||||||||||||
Net claim & claim adjustment expense payments | (369 | ) | (701 | ) | (1,070 | ) | (125 | ) | (21 | ) | (1,216 | ) | |||||||||||
Foreign currency translation adjustment and other | 6 | 7 | 13 | — | (1 | ) | 12 | ||||||||||||||||
Claim & claim adjustment expense reserves, end of period | |||||||||||||||||||||||
Net | 6,051 | 10,496 | 16,547 | 2,157 | 673 | 19,377 | |||||||||||||||||
Ceded | 902 | 1,786 | 2,688 | 577 | 2,554 | 5,819 | |||||||||||||||||
Gross | $ | 6,953 | $ | 12,282 | $ | 19,235 | $ | 2,734 | $ | 3,227 | $ | 25,196 |
SIX MONTHS ENDED JUNE 30, 2011 (In millions) | CNA Specialty | CNA Commercial | P&C Operations | Life & Group Non-Core | Corporate & Other Non-Core | Total Operations | |||||||||||||||||
Claim & claim adjustment expense reserves, beginning of period | |||||||||||||||||||||||
Gross | $ | 6,793 | $ | 12,522 | $ | 19,315 | $ | 2,739 | $ | 3,442 | $ | 25,496 | |||||||||||
Ceded | 875 | 1,881 | 2,756 | 642 | 2,724 | 6,122 | |||||||||||||||||
Net | 5,918 | 10,641 | 16,559 | 2,097 | 718 | 19,374 | |||||||||||||||||
Net incurred claim & claim adjustment expenses | 848 | 1,228 | 2,076 | 328 | 1 | 2,405 | |||||||||||||||||
Net claim & claim adjustment expense payments | (738 | ) | (1,394 | ) | (2,132 | ) | (268 | ) | (46 | ) | (2,446 | ) | |||||||||||
Foreign currency translation adjustment and other | 23 | 21 | 44 | — | — | 44 | |||||||||||||||||
Claim & claim adjustment expense reserves, end of period | |||||||||||||||||||||||
Net | 6,051 | 10,496 | 16,547 | 2,157 | 673 | 19,377 | |||||||||||||||||
Ceded | 902 | 1,786 | 2,688 | 577 | 2,554 | 5,819 | |||||||||||||||||
Gross | $ | 6,953 | $ | 12,282 | $ | 19,235 | $ | 2,734 | $ | 3,227 | $ | 25,196 |
CNA FINANCIAL CORPORATION Financial Supplement Investment Summary - Consolidated |
June 30, 2011 | March 31, 2011 | December 31, 2010 | |||||||||||||||||||||
(In millions) | Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | |||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Corporate and other bonds | $ | 20,879 | $ | 1,666 | $ | 20,964 | $ | 1,512 | $ | 21,031 | $ | 1,533 | |||||||||||
States, municipalities and political subdivisions: | |||||||||||||||||||||||
Tax-exempt | 4,855 | (53 | ) | 4,585 | (228 | ) | 4,282 | (218 | ) | ||||||||||||||
Taxable | 3,862 | 142 | 3,743 | 4 | 3,607 | (50 | ) | ||||||||||||||||
Total states, municipalities and political subdivisions | 8,717 | 89 | 8,328 | (224 | ) | 7,889 | (268 | ) | |||||||||||||||
Asset-backed: (1)(2) | |||||||||||||||||||||||
Agency RMBS | 4,187 | 64 | 3,991 | 15 | 3,836 | 38 | |||||||||||||||||
Prime RMBS | 867 | (79 | ) | 1,022 | (91 | ) | 1,139 | (128 | ) | ||||||||||||||
Sub-prime RMBS | 383 | (27 | ) | 435 | (20 | ) | 483 | (44 | ) | ||||||||||||||
Alt-A RMBS | 576 | (21 | ) | 627 | (22 | ) | 632 | (30 | ) | ||||||||||||||
Total RMBS | 6,013 | (63 | ) | 6,075 | (118 | ) | 6,090 | (164 | ) | ||||||||||||||
Agency CMBS | 30 | 1 | 45 | — | 30 | — | |||||||||||||||||
Other CMBS | 1,007 | 25 | 1,065 | 32 | 963 | (1 | ) | ||||||||||||||||
Total CMBS | 1,037 | 26 | 1,110 | 32 | 993 | (1 | ) | ||||||||||||||||
Other ABS | 933 | 8 | 896 | 10 | 763 | 10 | |||||||||||||||||
Total asset-backed | 7,983 | (29 | ) | 8,081 | (76 | ) | 7,846 | (155 | ) | ||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 244 | 13 | 134 | 14 | 137 | 15 | |||||||||||||||||
Foreign government | 677 | 18 | 645 | 14 | 620 | 18 | |||||||||||||||||
Redeemable preferred stock | 54 | 6 | 52 | 4 | 54 | 7 | |||||||||||||||||
Total fixed maturity securities | 38,554 | 1,763 | 38,204 | 1,244 | 37,577 | 1,150 | |||||||||||||||||
Equities | 346 | 26 | 356 | 26 | 440 | 18 | |||||||||||||||||
Limited partnership investments | 2,554 | — | 2,460 | — | 2,309 | — | |||||||||||||||||
Other invested assets | 16 | — | 15 | — | 27 | 1 | |||||||||||||||||
Mortgage loans | 198 | — | 118 | — | 87 | — | |||||||||||||||||
Short term investments | 1,709 | — | 1,677 | 3 | 2,215 | 2 | |||||||||||||||||
Total investments | $ | 43,377 | $ | 1,789 | $ | 42,830 | $ | 1,273 | $ | 42,655 | $ | 1,171 | |||||||||||
Net receivable/(payable) | $ | (177 | ) | $ | — | $ | (32 | ) | $ | — | $ | (222 | ) | $ | — |
June 30, 2011 | March 31, 2011 | December 31, 2010 | |||||||||||||||||||||
(In millions) | Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | |||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Corporate and other bonds | $ | 13,421 | $ | 769 | $ | 13,564 | $ | 694 | $ | 13,541 | $ | 715 | |||||||||||
States, municipalities and political subdivisions: | |||||||||||||||||||||||
Tax-exempt | 2,118 | 45 | 2,199 | 12 | 2,116 | 10 | |||||||||||||||||
Taxable | 2,550 | 72 | 2,515 | (12 | ) | 2,438 | (42 | ) | |||||||||||||||
Total states, municipalities and political subdivisions | 4,668 | 117 | 4,714 | — | 4,554 | (32 | ) | ||||||||||||||||
Asset-backed: | |||||||||||||||||||||||
Agency RMBS | 3,996 | 58 | 3,818 | 8 | 3,680 | 30 | |||||||||||||||||
Prime RMBS | 770 | (70 | ) | 920 | (79 | ) | 1,012 | (109 | ) | ||||||||||||||
Sub-prime RMBS | 365 | (27 | ) | 412 | (23 | ) | 461 | (45 | ) | ||||||||||||||
Alt-A RMBS | 513 | (18 | ) | 562 | (18 | ) | 563 | (29 | ) | ||||||||||||||
Total RMBS | 5,644 | (57 | ) | 5,712 | (112 | ) | 5,716 | (153 | ) | ||||||||||||||
Agency CMBS | 30 | 1 | 45 | — | 30 | — | |||||||||||||||||
Other CMBS | 829 | 21 | 895 | 23 | 803 | (2 | ) | ||||||||||||||||
Total CMBS | 859 | 22 | 940 | 23 | 833 | (2 | ) | ||||||||||||||||
Other ABS | 886 | 4 | 847 | 6 | 712 | 5 | |||||||||||||||||
Total asset-backed | 7,389 | (31 | ) | 7,499 | (83 | ) | 7,261 | (150 | ) | ||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 200 | 4 | 91 | 5 | 94 | 6 | |||||||||||||||||
Foreign government | 670 | 17 | 639 | 13 | 614 | 18 | |||||||||||||||||
Redeemable preferred stock | 3 | — | 3 | — | 5 | 3 | |||||||||||||||||
Total fixed maturity securities | 26,351 | 876 | 26,510 | 629 | 26,069 | 560 | |||||||||||||||||
Equities | 145 | 26 | 138 | 25 | 182 | 25 | |||||||||||||||||
Limited partnership investments | 2,553 | — | 2,459 | — | 2,307 | — | |||||||||||||||||
Other invested assets | 16 | — | 15 | — | 27 | 1 | |||||||||||||||||
Mortgage loans | 178 | — | 98 | — | 67 | — | |||||||||||||||||
Short term investments | 1,589 | — | 1,571 | 3 | 2,131 | 2 | |||||||||||||||||
Total investments | $ | 30,832 | $ | 902 | $ | 30,791 | $ | 657 | $ | 30,783 | $ | 588 | |||||||||||
Net receivable/(payable) | $ | (163 | ) | $ | — | $ | (40 | ) | $ | — | $ | (197 | ) | $ | — |
June 30, 2011 | March 31, 2011 | December 31, 2010 | |||||||||||||||||||||
(In millions) | Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | |||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Corporate and other bonds | $ | 7,458 | $ | 897 | $ | 7,400 | $ | 818 | $ | 7,490 | $ | 818 | |||||||||||
States, municipalities and political subdivisions: | |||||||||||||||||||||||
Tax-exempt | 2,737 | (98 | ) | 2,386 | (240 | ) | 2,166 | (228 | ) | ||||||||||||||
Taxable | 1,312 | 70 | 1,228 | 16 | 1,169 | (8 | ) | ||||||||||||||||
Total states, municipalities and political subdivisions | 4,049 | (28 | ) | 3,614 | (224 | ) | 3,335 | (236 | ) | ||||||||||||||
Asset-backed: | |||||||||||||||||||||||
Agency RMBS | 191 | 6 | 173 | 7 | 156 | 8 | |||||||||||||||||
Prime RMBS | 97 | (9 | ) | 102 | (12 | ) | 127 | (19 | ) | ||||||||||||||
Sub-prime RMBS | 18 | — | 23 | 3 | 22 | 1 | |||||||||||||||||
Alt-A RMBS | 63 | (3 | ) | 65 | (4 | ) | 69 | (1 | ) | ||||||||||||||
Total RMBS | 369 | (6 | ) | 363 | (6 | ) | 374 | (11 | ) | ||||||||||||||
Agency CMBS | — | — | — | — | — | — | |||||||||||||||||
Other CMBS | 178 | 4 | 170 | 9 | 160 | 1 | |||||||||||||||||
Total CMBS | 178 | 4 | 170 | 9 | 160 | 1 | |||||||||||||||||
Other ABS | 47 | 4 | 49 | 4 | 51 | 5 | |||||||||||||||||
Total asset-backed | 594 | 2 | 582 | 7 | 585 | (5 | ) | ||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 44 | 9 | 43 | 9 | 43 | 9 | |||||||||||||||||
Foreign government | 7 | 1 | 6 | 1 | 6 | — | |||||||||||||||||
Redeemable preferred stock | 51 | 6 | 49 | 4 | 49 | 4 | |||||||||||||||||
Total fixed maturity securities | 12,203 | 887 | 11,694 | 615 | 11,508 | 590 | |||||||||||||||||
Equities | 201 | — | 218 | 1 | 258 | (7 | ) | ||||||||||||||||
Limited partnership investments | 1 | — | 1 | — | 2 | — | |||||||||||||||||
Other invested assets | — | — | — | — | — | — | |||||||||||||||||
Mortgage loans | 20 | — | 20 | — | 20 | — | |||||||||||||||||
Short term investments | 120 | — | 106 | — | 84 | — | |||||||||||||||||
Total investments | $ | 12,545 | $ | 887 | $ | 12,039 | $ | 616 | $ | 11,872 | $ | 583 | |||||||||||
Net receivable/(payable) | $ | (14 | ) | $ | — | $ | 8 | $ | — | $ | (25 | ) | $ | — |
CNA FINANCIAL CORPORATION Financial Supplement Investments - Fixed Maturity Securities by Credit Rating As of June 30, 2011 (In millions) | ![]() |
U.S. Government, Government agencies and Government-sponsored enterprises | AAA | AA | A | BBB | Non-investment grade | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | — | $ | — | $ | 318 | $ | 19 | $ | 1,555 | $ | 90 | $ | 6,919 | $ | 593 | $ | 9,668 | $ | 826 | $ | 2,419 | $ | 138 | $ | 20,879 | $ | 1,666 | |||||||||||||||||||||||||||
States, municipalities and political subdivisions: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax-exempt | — | — | 1,129 | 32 | 2,747 | (39 | ) | 874 | (40 | ) | 90 | (5 | ) | 15 | (1 | ) | 4,855 | (53 | ) | ||||||||||||||||||||||||||||||||||||
Taxable | — | — | 670 | 18 | 2,543 | 91 | 635 | 32 | — | — | 14 | 1 | 3,862 | 142 | |||||||||||||||||||||||||||||||||||||||||
Total states, municipalities and political subdivisions | — | — | 1,799 | 50 | 5,290 | 52 | 1,509 | (8 | ) | 90 | (5 | ) | 29 | — | 8,717 | 89 | |||||||||||||||||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS | 4,187 | 64 | — | — | — | — | — | — | — | — | — | — | 4,187 | 64 | |||||||||||||||||||||||||||||||||||||||||
Prime RMBS | — | — | 171 | (7 | ) | 4 | — | 35 | — | 71 | (22 | ) | 586 | (50 | ) | 867 | (79 | ) | |||||||||||||||||||||||||||||||||||||
Sub-prime RMBS | — | — | 103 | (3 | ) | 104 | (13 | ) | 25 | — | 37 | (7 | ) | 114 | (4 | ) | 383 | (27 | ) | ||||||||||||||||||||||||||||||||||||
Alt-A RMBS | — | — | 338 | (7 | ) | 18 | (1 | ) | 55 | — | 93 | (7 | ) | 72 | (6 | ) | 576 | (21 | ) | ||||||||||||||||||||||||||||||||||||
Total RMBS | 4,187 | 64 | 612 | (17 | ) | 126 | (14 | ) | 115 | — | 201 | (36 | ) | 772 | (60 | ) | 6,013 | (63 | ) | ||||||||||||||||||||||||||||||||||||
Agency CMBS | 30 | 1 | — | — | — | — | — | — | — | — | — | — | 30 | 1 | |||||||||||||||||||||||||||||||||||||||||
Other CMBS | — | — | 203 | 6 | 200 | (6 | ) | 231 | 6 | 159 | (1 | ) | 214 | 20 | 1,007 | 25 | |||||||||||||||||||||||||||||||||||||||
Total CMBS | 30 | 1 | 203 | 6 | 200 | (6 | ) | 231 | 6 | 159 | (1 | ) | 214 | 20 | 1,037 | 26 | |||||||||||||||||||||||||||||||||||||||
Other ABS | — | — | 620 | 6 | 189 | 2 | 78 | — | 39 | — | 7 | — | 933 | 8 | |||||||||||||||||||||||||||||||||||||||||
Total asset-backed | 4,217 | 65 | 1,435 | (5 | ) | 515 | (18 | ) | 424 | 6 | 399 | (37 | ) | 993 | (40 | ) | 7,983 | (29 | ) | ||||||||||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 244 | 13 | — | — | — | — | — | — | — | — | — | — | 244 | 13 | |||||||||||||||||||||||||||||||||||||||||
Foreign government | — | — | 460 | 12 | 128 | 3 | 89 | 3 | — | — | — | — | 677 | 18 | |||||||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | — | — | — | — | — | — | — | — | 54 | 6 | — | — | 54 | 6 | |||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 4,461 | $ | 78 | $ | 4,012 | $ | 76 | $ | 7,488 | $ | 127 | $ | 8,941 | $ | 594 | $ | 10,211 | $ | 790 | $ | 3,441 | $ | 98 | $ | 38,554 | $ | 1,763 | |||||||||||||||||||||||||||
Percentage of total fixed maturity securities | 11.6 | % | 10.4 | % | 19.4 | % | 23.2 | % | 26.5 | % | 8.9 | % | 100.0 | % |
CNA FINANCIAL CORPORATION Financial Supplement Property & Casualty Results of Operations | ![]() |
CNA Specialty | CNA Commercial | P&C Operations | |||||||||||||||||||||||||||||||||
THREE MONTHS ENDED JUNE 30 (In millions) | 2011 | 2010 | Fav / (Unfav) % Change | 2011 | 2010 | Fav / (Unfav) % Change | 2011 | 2010 | Fav / (Unfav) % Change | ||||||||||||||||||||||||||
Gross written premiums | $ | 1,079 | $ | 1,043 | 3 | % | $ | 965 | $ | 936 | 3 | % | $ | 2,044 | $ | 1,979 | 3 | % | |||||||||||||||||
Net written premiums | 683 | 647 | 6 | 880 | 838 | 5 | 1,563 | 1,485 | 5 | ||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||
Net earned premiums | 688 | 665 | 3 | 768 | 797 | (4 | ) | 1,456 | 1,462 | — | |||||||||||||||||||||||||
Net investment income | 126 | 125 | 1 | 193 | 184 | 5 | 319 | 309 | 3 | ||||||||||||||||||||||||||
Other revenues | 54 | 53 | 2 | 12 | 16 | (25 | ) | 66 | 69 | (4 | ) | ||||||||||||||||||||||||
Total operating revenues | 868 | 843 | 3 | 973 | 997 | (2 | ) | 1,841 | 1,840 | — | |||||||||||||||||||||||||
Claims, Benefits and Expenses: | |||||||||||||||||||||||||||||||||||
Net incurred claims and benefits | 418 | 320 | (31 | ) | 621 | 486 | (28 | ) | 1,039 | 806 | (29 | ) | |||||||||||||||||||||||
Policyholders' dividends | — | 3 | N/M | 2 | 6 | 67 | 2 | 9 | 78 | ||||||||||||||||||||||||||
Amortization of deferred acquisition costs | 164 | 154 | (6 | ) | 180 | 186 | 3 | 344 | 340 | (1 | ) | ||||||||||||||||||||||||
Other insurance related expenses | 52 | 47 | (11 | ) | 102 | 107 | 5 | 154 | 154 | — | |||||||||||||||||||||||||
Other expenses | 52 | 50 | (4 | ) | 11 | 11 | — | 63 | 61 | (3 | ) | ||||||||||||||||||||||||
Total claims, benefits and expenses | 686 | 574 | (20 | ) | 916 | 796 | (15 | ) | 1,602 | 1,370 | (17 | ) | |||||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 182 | 269 | (32 | ) | 57 | 201 | (72 | ) | 239 | 470 | (49 | ) | |||||||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (64 | ) | (90 | ) | 29 | (16 | ) | (68 | ) | 76 | (80 | ) | (158 | ) | 49 | ||||||||||||||||||||
Net operating (income) loss, after-tax, attributable to noncontrolling interests | (4 | ) | (11 | ) | 64 | (2 | ) | (8 | ) | 75 | (6 | ) | (19 | ) | 68 | ||||||||||||||||||||
Net operating income (loss) from continuing operations attributable to CNA | 114 | 168 | (32 | ) | 39 | 125 | (69 | ) | 153 | 293 | (48 | ) | |||||||||||||||||||||||
Net realized investment gains (losses), net of participating policyholders' interests | 7 | 32 | (78 | ) | 11 | (12 | ) | 192 | 18 | 20 | (10 | ) | |||||||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | (2 | ) | (11 | ) | 82 | (3 | ) | (2 | ) | (50 | ) | (5 | ) | (13 | ) | 62 | |||||||||||||||||||
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests | — | — | N/M | — | — | N/M | — | — | N/M | ||||||||||||||||||||||||||
Net realized investment gains (losses) attributable to CNA | 5 | 21 | (76 | ) | 8 | (14 | ) | 157 | 13 | 7 | 86 | ||||||||||||||||||||||||
Net income (loss) from continuing operations attributable to CNA | $ | 119 | $ | 189 | (37 | ) | % | $ | 47 | $ | 111 | (58 | ) | % | $ | 166 | $ | 300 | (45 | ) | % | ||||||||||||||
FINANCIAL RATIOS | |||||||||||||||||||||||||||||||||||
Loss & LAE | 60.8 | % | 48.2 | % | 80.7 | % | 60.9 | % | 71.3 | % | 55.1 | % | |||||||||||||||||||||||
Acquisition expense | 19.9 | 19.4 | 18.3 | 17.9 | 19.1 | 18.5 | |||||||||||||||||||||||||||||
Underwriting expense | 11.6 | 10.9 | 18.3 | 18.8 | 15.1 | 15.3 | |||||||||||||||||||||||||||||
Expense | 31.5 | 30.3 | 36.6 | 36.7 | 34.2 | 33.8 | |||||||||||||||||||||||||||||
Dividend | (0.1 | ) | 0.5 | 0.4 | 0.8 | 0.2 | 0.6 | ||||||||||||||||||||||||||||
Combined ratio | 92.2 | % | 79.0 | % | 117.7 | % | 98.4 | % | 105.7 | % | 89.5 | % | |||||||||||||||||||||||
RATIO IMPACTS | |||||||||||||||||||||||||||||||||||
Impact of catastrophes | |||||||||||||||||||||||||||||||||||
Pretax net accident year catastrophe losses incurred | $ | 4 | $ | 3 | $ | 96 | $ | 45 | $ | 100 | $ | 48 | |||||||||||||||||||||||
Impact on loss & LAE ratio | 0.6 | % | 0.5 | % | 12.5 | % | 5.7 | % | 6.9 | % | 3.3 | % | |||||||||||||||||||||||
Impact of development & other | |||||||||||||||||||||||||||||||||||
Pretax net development: (favorable) / unfavorable | |||||||||||||||||||||||||||||||||||
Prior year loss & ALAE reserve development | $ | (52 | ) | $ | (125 | ) | $ | (50 | ) | $ | (175 | ) | $ | (102 | ) | $ | (300 | ) | |||||||||||||||||
Prior year premium development | (1 | ) | 1 | 40 | 35 | 39 | 36 | ||||||||||||||||||||||||||||
Other (1) | — | — | 4 | 5 | 4 | 5 | |||||||||||||||||||||||||||||
Total development & other | $ | (53 | ) | $ | (124 | ) | $ | (6 | ) | $ | (135 | ) | $ | (59 | ) | $ | (259 | ) | |||||||||||||||||
Impact of development & other on loss & LAE ratio | (7.7 | ) | % | (18.6 | ) | % | (1.8 | ) | % | (18.0 | ) | % | (4.8 | ) | % | (18.4 | ) | % |
CNA FINANCIAL CORPORATION Financial Supplement Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations | ![]() |
P&C Operations | Life & Group Non-Core | Corporate & Other Non-Core | Total Operations | |||||||||||||||||||||||||||||||||||||||||
THREE MONTHS ENDED JUNE 30 (In millions) | 2011 | 2010 | 2011 | 2010 | Fav / (Unfav) % Change | 2011 | 2010 | Fav / (Unfav) % Change | 2011 | 2010 | Fav / (Unfav) % Change | |||||||||||||||||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||||||||||||||||||||||
Net earned premiums | $ | 1,456 | $ | 1,462 | $ | 141 | $ | 146 | (3 | ) | % | $ | (2 | ) | $ | — | N/M | % | $ | 1,595 | $ | 1,608 | (1 | ) | % | |||||||||||||||||||
Net investment income | 319 | 309 | 189 | 174 | 9 | 9 | 38 | (76 | ) | 517 | 521 | (1 | ) | |||||||||||||||||||||||||||||||
Other revenues | 66 | 69 | 2 | 2 | — | 3 | 4 | (25 | ) | 71 | 75 | (5 | ) | |||||||||||||||||||||||||||||||
Total operating revenues | 1,841 | 1,840 | 332 | 322 | 3 | 10 | 42 | (76 | ) | 2,183 | 2,204 | (1 | ) | |||||||||||||||||||||||||||||||
Claims, Benefits and Expenses: | ||||||||||||||||||||||||||||||||||||||||||||
Net incurred claims and benefits | 1,039 | 806 | 330 | 314 | (5 | ) | (6 | ) | 17 | 135 | 1,363 | 1,137 | (20 | ) | ||||||||||||||||||||||||||||||
Policyholders' dividends | 2 | 9 | 2 | 1 | (100 | ) | — | — | N/M | 4 | 10 | 60 | ||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | 344 | 340 | 6 | 5 | (20 | ) | — | — | N/M | 350 | 345 | (1 | ) | |||||||||||||||||||||||||||||||
Other insurance related expenses | 154 | 154 | 34 | 45 | 24 | 2 | (2 | ) | N/M | 190 | 197 | 4 | ||||||||||||||||||||||||||||||||
Other expenses | 63 | 61 | 6 | — | N/M | 43 | 37 | (16 | ) | 112 | 98 | (14 | ) | |||||||||||||||||||||||||||||||
Total claims, benefits and expenses | 1,602 | 1,370 | 378 | 365 | (4 | ) | 39 | 52 | 25 | 2,019 | 1,787 | (13 | ) | |||||||||||||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 239 | 470 | (46 | ) | (43 | ) | (7 | ) | (29 | ) | (10 | ) | (190 | ) | 164 | 417 | (61 | ) | ||||||||||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (80 | ) | (158 | ) | 27 | 25 | 8 | 11 | 4 | 175 | (42 | ) | (129 | ) | 67 | |||||||||||||||||||||||||||||
Net operating (income) loss, after-tax, attributable to noncontrolling interests | (6 | ) | (19 | ) | — | — | N/M | — | — | N/M | (6 | ) | (19 | ) | 68 | |||||||||||||||||||||||||||||
Net operating income (loss) from continuing operations attributable to CNA | 153 | 293 | (19 | ) | (18 | ) | (6 | ) | (18 | ) | (6 | ) | N/M | 116 | 269 | (57 | ) | |||||||||||||||||||||||||||
Net realized investment gains (losses), net of participating policyholders' interests | 18 | 20 | 1 | (1 | ) | N/M | (4 | ) | 10 | (140 | ) | 15 | 29 | (48 | ) | |||||||||||||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | (5 | ) | (13 | ) | — | — | N/M | — | (3 | ) | N/M | (5 | ) | (16 | ) | 69 | ||||||||||||||||||||||||||||
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests | — | — | — | — | N/M | — | — | N/M | — | — | N/M | |||||||||||||||||||||||||||||||||
Net realized investment gains (losses) attributable to CNA | 13 | 7 | 1 | (1 | ) | N/M | (4 | ) | 7 | (157 | ) | 10 | 13 | (23 | ) | |||||||||||||||||||||||||||||
Net income (loss) from continuing operations attributable to CNA | $ | 166 | $ | 300 | $ | (18 | ) | $ | (19 | ) | 5 | % | $ | (22 | ) | $ | 1 | N/M | % | $ | 126 | $ | 282 | (55 | ) | % |
CNA FINANCIAL CORPORATION Financial Supplement Property & Casualty Results of Operations | ![]() |
CNA Specialty | CNA Commercial | P&C Operations | |||||||||||||||||||||||||||||||||
SIX MONTHS ENDED JUNE 30 (In millions) | 2011 | 2010 | Fav / (Unfav) % Change | 2011 | 2010 | Fav / (Unfav) % Change | 2011 | 2010 | Fav / (Unfav) % Change | ||||||||||||||||||||||||||
Gross written premiums | $ | 2,209 | $ | 2,093 | 6 | % | $ | 1,858 | $ | 1,848 | 1 | % | $ | 4,067 | $ | 3,941 | 3 | % | |||||||||||||||||
Net written premiums | 1,422 | 1,303 | 9 | 1,708 | 1,667 | 2 | 3,130 | 2,970 | 5 | ||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||
Net earned premiums | 1,357 | 1,319 | 3 | 1,570 | 1,613 | (3 | ) | 2,927 | 2,932 | — | |||||||||||||||||||||||||
Net investment income | 286 | 272 | 5 | 454 | 405 | 12 | 740 | 677 | 9 | ||||||||||||||||||||||||||
Other revenues | 108 | 105 | 3 | 26 | 34 | (24 | ) | 134 | 139 | (4 | ) | ||||||||||||||||||||||||
Total operating revenues | 1,751 | 1,696 | 3 | 2,050 | 2,052 | — | 3,801 | 3,748 | 1 | ||||||||||||||||||||||||||
Claims, Benefits and Expenses: | |||||||||||||||||||||||||||||||||||
Net incurred claims and benefits | 848 | 722 | (17 | ) | 1,224 | 1,090 | (12 | ) | 2,072 | 1,812 | (14 | ) | |||||||||||||||||||||||
Policyholders' dividends | — | 4 | N/M | 2 | 7 | 71 | 2 | 11 | 82 | ||||||||||||||||||||||||||
Amortization of deferred acquisition costs | 325 | 309 | (5 | ) | 358 | 369 | 3 | 683 | 678 | (1 | ) | ||||||||||||||||||||||||
Other insurance related expenses | 96 | 94 | (2 | ) | 185 | 214 | 14 | 281 | 308 | 9 | |||||||||||||||||||||||||
Other expenses | 92 | 94 | 2 | 27 | 28 | 4 | 119 | 122 | 2 | ||||||||||||||||||||||||||
Total claims, benefits and expenses | 1,361 | 1,223 | (11 | ) | 1,796 | 1,708 | (5 | ) | 3,157 | 2,931 | (8 | ) | |||||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 390 | 473 | (18 | ) | 254 | 344 | (26 | ) | 644 | 817 | (21 | ) | |||||||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (134 | ) | (158 | ) | 15 | (82 | ) | (111 | ) | 26 | (216 | ) | (269 | ) | 20 | ||||||||||||||||||||
Net operating (income) loss, after-tax, attributable to noncontrolling interests | (12 | ) | (19 | ) | 37 | (2 | ) | (10 | ) | 80 | (14 | ) | (29 | ) | 52 | ||||||||||||||||||||
Net operating income (loss) from continuing operations attributable to CNA | 244 | 296 | (18 | ) | 170 | 223 | (24 | ) | 414 | 519 | (20 | ) | |||||||||||||||||||||||
Net realized investment gains (losses), net of participating policyholders' interests | 15 | 45 | (67 | ) | 28 | 9 | N/M | 43 | 54 | (20 | ) | ||||||||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | (5 | ) | (15 | ) | 67 | (9 | ) | (9 | ) | — | (14 | ) | (24 | ) | 42 | ||||||||||||||||||||
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests | — | — | N/M | (1 | ) | — | N/M | (1 | ) | — | N/M | ||||||||||||||||||||||||
Net realized investment gains (losses) attributable to CNA | 10 | 30 | (67 | ) | 18 | — | N/M | 28 | 30 | (7 | ) | ||||||||||||||||||||||||
Net income (loss) from continuing operations attributable to CNA | $ | 254 | $ | 326 | (22 | ) | % | $ | 188 | $ | 223 | (16 | ) | % | $ | 442 | $ | 549 | (19 | ) | % | ||||||||||||||
FINANCIAL RATIOS | |||||||||||||||||||||||||||||||||||
Loss & LAE | 62.5 | % | 54.8 | % | 77.9 | % | 67.6 | % | 70.8 | % | 61.8 | % | |||||||||||||||||||||||
Acquisition expense | 19.6 | 19.3 | 16.9 | 18.0 | 18.2 | 18.6 | |||||||||||||||||||||||||||||
Underwriting expense | 11.4 | 11.3 | 17.7 | 18.1 | 14.7 | 15.0 | |||||||||||||||||||||||||||||
Expense | 31.0 | 30.6 | 34.6 | 36.1 | 32.9 | 33.6 | |||||||||||||||||||||||||||||
Dividend | — | 0.3 | 0.1 | 0.4 | 0.1 | 0.4 | |||||||||||||||||||||||||||||
Combined ratio | 93.5 | % | 85.7 | % | 112.6 | % | 104.1 | % | 103.8 | % | 95.8 | % | |||||||||||||||||||||||
RATIO IMPACTS | |||||||||||||||||||||||||||||||||||
Impact of catastrophes | |||||||||||||||||||||||||||||||||||
Pretax net accident year catastrophe losses incurred | $ | 6 | $ | 5 | $ | 149 | $ | 83 | $ | 155 | $ | 88 | |||||||||||||||||||||||
Impact on loss & LAE ratio | 0.5 | % | 0.4 | % | 9.5 | % | 5.2 | % | 5.3 | % | 3.0 | % | |||||||||||||||||||||||
Impact of development & other | |||||||||||||||||||||||||||||||||||
Pretax net development: (favorable) / unfavorable | |||||||||||||||||||||||||||||||||||
Prior year loss & ALAE reserve development | $ | (67 | ) | $ | (150 | ) | $ | (57 | ) | $ | (203 | ) | $ | (124 | ) | $ | (353 | ) | |||||||||||||||||
Prior year premium development | (8 | ) | (3 | ) | 32 | 56 | 24 | 53 | |||||||||||||||||||||||||||
Other (1) | — | — | 7 | 5 | 7 | 5 | |||||||||||||||||||||||||||||
Total development & other | $ | (75 | ) | $ | (153 | ) | $ | (18 | ) | $ | (142 | ) | $ | (93 | ) | $ | (295 | ) | |||||||||||||||||
Impact of development & other on loss & LAE ratio | (5.4 | ) | % | (11.5 | ) | % | (1.6 | ) | % | (9.6 | ) | % | (3.4 | ) | % | (10.6 | ) | % |
CNA FINANCIAL CORPORATION Financial Supplement Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations | ![]() |
P&C Operations | Life & Group Non-Core | Corporate & Other Non-Core | Total Operations | |||||||||||||||||||||||||||||||||||||||||
SIX MONTHS ENDED JUNE 30 (In millions) | 2011 | 2010 | 2011 | 2010 | Fav / (Unfav) % Change | 2011 | 2010 | Fav / (Unfav) % Change | 2011 | 2010 | Fav / (Unfav) % Change | |||||||||||||||||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||||||||||||||||||||||
Net earned premiums | $ | 2,927 | $ | 2,932 | $ | 285 | $ | 291 | (2 | ) | % | $ | (2 | ) | $ | — | N/M | % | $ | 3,210 | $ | 3,223 | — | % | ||||||||||||||||||||
Net investment income | 740 | 677 | 377 | 349 | 8 | 20 | 85 | (76 | ) | 1,137 | 1,111 | 2 | ||||||||||||||||||||||||||||||||
Other revenues | 134 | 139 | — | 6 | N/M | 4 | 6 | (33 | ) | 138 | 151 | (9 | ) | |||||||||||||||||||||||||||||||
Total operating revenues | 3,801 | 3,748 | 662 | 646 | 2 | 22 | 91 | (76 | ) | 4,485 | 4,485 | — | ||||||||||||||||||||||||||||||||
Claims, Benefits and Expenses: | ||||||||||||||||||||||||||||||||||||||||||||
Net incurred claims and benefits | 2,072 | 1,812 | 653 | 595 | (10 | ) | 1 | 36 | 97 | 2,726 | 2,443 | (12 | ) | |||||||||||||||||||||||||||||||
Policyholders' dividends | 2 | 11 | 3 | 1 | N/M | — | — | N/M | 5 | 12 | 58 | |||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | 683 | 678 | 12 | 9 | (33 | ) | — | — | N/M | 695 | 687 | (1 | ) | |||||||||||||||||||||||||||||||
Other insurance related expenses | 281 | 308 | 72 | 96 | 25 | 2 | (1 | ) | N/M | 355 | 403 | 12 | ||||||||||||||||||||||||||||||||
Other expenses | 119 | 122 | 12 | 6 | (100 | ) | 87 | 72 | (21 | ) | 218 | 200 | (9 | ) | ||||||||||||||||||||||||||||||
Total claims, benefits and expenses | 3,157 | 2,931 | 752 | 707 | (6 | ) | 90 | 107 | 16 | 3,999 | 3,745 | (7 | ) | |||||||||||||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 644 | 817 | (90 | ) | (61 | ) | (48 | ) | (68 | ) | (16 | ) | N/M | 486 | 740 | (34 | ) | |||||||||||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (216 | ) | (269 | ) | 53 | 44 | 20 | 23 | 6 | N/M | (140 | ) | (219 | ) | 36 | |||||||||||||||||||||||||||||
Net operating (income) loss, after-tax, attributable to noncontrolling interests | (14 | ) | (29 | ) | — | — | N/M | — | — | N/M | (14 | ) | (29 | ) | 52 | |||||||||||||||||||||||||||||
Net operating income (loss) from continuing operations attributable to CNA | 414 | 519 | (37 | ) | (17 | ) | (118 | ) | (45 | ) | (10 | ) | N/M | 332 | 492 | (33 | ) | |||||||||||||||||||||||||||
Net realized investment gains (losses), net of participating policyholders' interests | 43 | 54 | (3 | ) | (5 | ) | 40 | (12 | ) | 14 | (186 | ) | 28 | 63 | (56 | ) | ||||||||||||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | (14 | ) | (24 | ) | 1 | — | N/M | 4 | (4 | ) | N/M | (9 | ) | (28 | ) | 68 | ||||||||||||||||||||||||||||
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests | (1 | ) | — | — | — | N/M | — | — | N/M | (1 | ) | — | N/M | |||||||||||||||||||||||||||||||
Net realized investment gains (losses) attributable to CNA | 28 | 30 | (2 | ) | (5 | ) | 60 | (8 | ) | 10 | (180 | ) | 18 | 35 | (49 | ) | ||||||||||||||||||||||||||||
Net income (loss) from continuing operations attributable to CNA | $ | 442 | $ | 549 | $ | (39 | ) | $ | (22 | ) | (77 | ) | % | $ | (53 | ) | $ | — | N/M | % | $ | 350 | $ | 527 | (34 | ) | % |
CNA FINANCIAL CORPORATION Financial Supplement Components of Pretax Net Investment Income (In millions) | ![]() |
CNA Specialty | ||||||||||||||||||||||||||||||||
1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010 | 1Q11 | 2Q11 | YTD 2011 | |||||||||||||||||||||||||
Income (loss) from limited partnerships | $ | 23 | $ | (1 | ) | $ | 23 | $ | 41 | $ | 86 | $ | 38 | $ | 4 | $ | 42 | |||||||||||||||
Income (loss) from trading portfolio | 1 | 1 | 1 | 2 | 5 | 1 | 1 | 2 | ||||||||||||||||||||||||
Other investment income | 123 | 125 | 124 | 128 | 500 | 121 | 121 | 242 | ||||||||||||||||||||||||
Net investment income | $ | 147 | $ | 125 | $ | 148 | $ | 171 | $ | 591 | $ | 160 | $ | 126 | $ | 286 | ||||||||||||||||
CNA Commercial | ||||||||||||||||||||||||||||||||
1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010 | 1Q11 | 2Q11 | YTD 2011 | |||||||||||||||||||||||||
Income (loss) from limited partnerships | $ | 40 | $ | (2 | ) | $ | 38 | $ | 68 | $ | 144 | $ | 73 | $ | 6 | $ | 79 | |||||||||||||||
Income (loss) from trading portfolio | 2 | 1 | 2 | 2 | 7 | 2 | 2 | 4 | ||||||||||||||||||||||||
Other investment income | 179 | 185 | 176 | 182 | 722 | 186 | 185 | 371 | ||||||||||||||||||||||||
Net investment income | $ | 221 | $ | 184 | $ | 216 | $ | 252 | $ | 873 | $ | 261 | $ | 193 | $ | 454 | ||||||||||||||||
P&C Operations | ||||||||||||||||||||||||||||||||
1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010 | 1Q11 | 2Q11 | YTD 2011 | |||||||||||||||||||||||||
Income (loss) from limited partnerships | $ | 63 | $ | (3 | ) | $ | 61 | $ | 109 | $ | 230 | $ | 111 | $ | 10 | $ | 121 | |||||||||||||||
Income (loss) from trading portfolio | 3 | 2 | 3 | 4 | 12 | 3 | 3 | 6 | ||||||||||||||||||||||||
Other investment income | 302 | 310 | 300 | 310 | 1,222 | 307 | 306 | 613 | ||||||||||||||||||||||||
Net investment income | $ | 368 | $ | 309 | $ | 364 | $ | 423 | $ | 1,464 | $ | 421 | $ | 319 | $ | 740 | ||||||||||||||||
Life & Group Non-Core | ||||||||||||||||||||||||||||||||
1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010 | 1Q11 | 2Q11 | YTD 2011 | |||||||||||||||||||||||||
Income (loss) from limited partnerships | $ | — | $ | (3 | ) | $ | 1 | $ | — | $ | (2 | ) | $ | — | $ | — | $ | — | ||||||||||||||
Income (loss) from trading portfolio | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Other investment income | 175 | 177 | 181 | 184 | 717 | 188 | 189 | 377 | ||||||||||||||||||||||||
Net investment income | $ | 175 | $ | 174 | $ | 182 | $ | 184 | $ | 715 | $ | 188 | $ | 189 | $ | 377 | ||||||||||||||||
Corporate & Other Non-Core | ||||||||||||||||||||||||||||||||
1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010 | 1Q11 | 2Q11 | YTD 2011 | |||||||||||||||||||||||||
Income (loss) from limited partnerships | $ | 9 | $ | 2 | $ | 6 | $ | 4 | $ | 21 | $ | 3 | $ | 1 | $ | 4 | ||||||||||||||||
Income (loss) from trading portfolio | 1 | — | 1 | (1 | ) | 1 | — | — | — | |||||||||||||||||||||||
Other investment income | 37 | 36 | 28 | 14 | 115 | 8 | 8 | 16 | ||||||||||||||||||||||||
Net investment income | $ | 47 | $ | 38 | $ | 35 | $ | 17 | $ | 137 | $ | 11 | $ | 9 | $ | 20 | ||||||||||||||||
Total Operations | ||||||||||||||||||||||||||||||||
1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010 | 1Q11 | 2Q11 | YTD 2011 | |||||||||||||||||||||||||
Income (loss) from limited partnerships | $ | 72 | $ | (4 | ) | $ | 68 | $ | 113 | $ | 249 | $ | 114 | $ | 11 | $ | 125 | |||||||||||||||
Income (loss) from trading portfolio | 4 | 2 | 4 | 3 | 13 | 3 | 3 | 6 | ||||||||||||||||||||||||
Other investment income | 514 | 523 | 509 | 508 | 2,054 | 503 | 503 | 1,006 | ||||||||||||||||||||||||
Net investment income | $ | 590 | $ | 521 | $ | 581 | $ | 624 | $ | 2,316 | $ | 620 | $ | 517 | $ | 1,137 |
CNA FINANCIAL CORPORATION Financial Supplement Statutory Data - Preliminary | ![]() |
PERIODS ENDED JUNE 30 | Three Months | Six Months | |||||||||||||||||||||
Income Statements | (Preliminary) 2011 | Fav / (Unfav) % Change | (Preliminary) 2011 | Fav / (Unfav) % Change | |||||||||||||||||||
(In millions) | 2010 | 2010 | |||||||||||||||||||||
Combined Continental Casualty Companies | |||||||||||||||||||||||
Gross written premiums | $ | 1,958 | $ | 1,901 | 3 | % | $ | 3,910 | $ | 3,763 | 4 | % | |||||||||||
Net written premiums | 1,483 | 1,412 | 5 | 2,993 | 2,814 | 6 | |||||||||||||||||
Net earned premiums | 1,246 | 1,239 | 1 | 2,492 | 2,456 | 1 | |||||||||||||||||
Claim and claim adjustment expenses | 1,104 | 895 | (23 | ) | 2,213 | 1,956 | (13 | ) | |||||||||||||||
Acquisition expenses | 256 | 226 | (13 | ) | 512 | 465 | (10 | ) | |||||||||||||||
Underwriting expenses | 197 | 199 | 1 | 391 | 412 | 5 | |||||||||||||||||
Policyholders' dividends | 2 | 3 | (33 | ) | 5 | 6 | (17 | ) | |||||||||||||||
Underwriting income (loss) | (313 | ) | (84 | ) | N/M | (629 | ) | (383 | ) | (64 | ) | ||||||||||||
Net investment income | 465 | 414 | 12 | 890 | 827 | 8 | |||||||||||||||||
Other income (loss) | 9 | 3 | N/M | 31 | 13 | 138 | |||||||||||||||||
Income tax (expense) benefit | (16 | ) | (91 | ) | 82 | (25 | ) | (108 | ) | 77 | |||||||||||||
Net realized gains (losses) | 37 | 93 | (60 | ) | 64 | 103 | (38 | ) | |||||||||||||||
Net income (loss) | $ | 182 | $ | 335 | (46 | ) | % | $ | 331 | $ | 452 | (27 | ) | % | |||||||||
Financial Ratios | |||||||||||||||||||||||
Loss and LAE | 88.5 | % | 72.2 | % | 88.8 | % | 79.6 | % | |||||||||||||||
Acquisition expense | 17.3 | 16.0 | 17.1 | 16.5 | |||||||||||||||||||
Underwriting expense | 13.3 | 14.1 | 13.1 | 14.8 | |||||||||||||||||||
Expense | 30.6 | 30.1 | 30.2 | 31.3 | |||||||||||||||||||
Dividend | 0.2 | 0.3 | 0.2 | 0.2 | |||||||||||||||||||
Combined ratio | 119.3 | % | 102.6 | % | 119.2 | % | 111.1 | % |
SUPPLEMENTAL STATUTORY DATA | (Preliminary) June 30, 2011 | |||||
(In millions) | December 31, 2010 | |||||
Combined Continental Casualty Companies | ||||||
Statutory surplus (1) | $ | 10,056 | $ | 9,821 | ||
Life Company | ||||||
Statutory surplus | $ | 519 | $ | 498 |
CNA Specialty | |||||||||
2011 YTD Evaluated at 6/30/11 | 2010 FY Evaluated at 12/31/10 | 2010 FY Evaluated at 6/30/11 | |||||||
Gross Accident Year | 63.5 | % | 62.6 | % | 62.4 | % | |||
Impact of Reinsurance | 4.4 | 4.3 | 4.3 | ||||||
Net Accident Year | 67.9 | 66.9 | 66.7 | % | |||||
Impact of Development and Other (1) | (5.4 | ) | (12.9 | ) | |||||
Net Calendar Year | 62.5 | % | 54.0 | % |
CNA Commercial | |||||||||
2011 YTD Evaluated at 6/30/11 | 2010 FY Evaluated at 12/31/10 | 2010 FY Evaluated at 6/30/11 | |||||||
Gross Accident Year | 75.6 | % | 71.7 | % | 71.9 | % | |||
Impact of Reinsurance | 3.9 | 3.8 | 3.6 | ||||||
Net Accident Year | 79.5 | 75.5 | 75.5 | % | |||||
Impact of Development and Other (1) | (1.6 | ) | (8.7 | ) | |||||
Net Calendar Year | 77.9 | % | 66.8 | % |
P&C Operations | |||||||||
2011 YTD Evaluated at 6/30/11 | 2010 FY Evaluated at 12/31/10 | 2010 FY Evaluated at 6/30/11 | |||||||
Gross Accident Year | 68.9 | % | 66.8 | % | 66.8 | % | |||
Impact of Reinsurance | 5.3 | 4.8 | 4.8 | ||||||
Net Accident Year | 74.2 | 71.6 | 71.6 | % | |||||
Impact of Development and Other (1) | (3.4 | ) | (10.6 | ) | |||||
Net Calendar Year | 70.8 | % | 61.0 | % |
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