CNA Financial Corporation (CNA) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $241 million, or $ 0.89 a share in the quarter, against a net loss of $70 million, or $0.26 a share in the last year period.
Revenue during the quarter grew 5.33 percent to $2,390 million from $2,269 million in the previous year period. Net premium earned for the quarter went down marginally by 1.14 percent or $20 million to $1,728 million.
Total expenses come down
Benefits, losses and expenses for the quarter were at $2,073 million, or 119.97 percent of premium earned from $2,430 million or 139.02 percent of premium earned in the last year period. Operating income for the quarter was $317 million, compared with an operating loss of $161 million in the previous year period. Net investment income was at $527 million for the quarter, up 23.13 percent or $99 million from year-ago period. The company has recorded a gain on investments of $24 million in the quarter compared with a loss of $28 million for the previous year period.
"Led by very good performance in our Specialty and International segments, fourth quarter net operating income of $221 million was a solid result despite reserve strengthening in the run-off Defense Base Act business within Commercial," said Dino E. Robusto, chairman and chief executive officer of CNA Financial Corporation. "I am honored and excited to be at CNA and am very focused on continuing to improve our underwriting performance."
Operating cash flow improves marginally
CNA Financial Corporation has generated cash of $1,416 million from operating activities during the year, up 2.09 percent or $29 million, when compared with the last year. The company has spent $846 million cash to meet investing activities during the year as against cash outgo of $372 million in the last year.
The company has spent $673 million cash to carry out financing activities during the year as against cash outgo of $807 million in the last year period.
Assets, liabilities remain almost stable
Total assets were almost stable over the past one year at $55,233 million on Dec. 31, 2016.
Return on assets was at 0.51 percent in the quarter against a negative 0.06 percent in the last year period. Return on equity was at 2.01 percent in the quarter against a negative 0.60 percent in the last year period.
Investments move up marginally
Investments stood at $45,420 million as on Dec. 31, 2016, up 1.61 percent or $721 million from year-ago. Meanwhile, yield on investments went up 20 basis points to 1.16 percent in the quarter. Meanwhile, reinsurance recoverables moved down 0.83 percent or $37 million over the year to $4,416 million on Dec. 31, 2016.
Total debt was at $2,710 million as on Dec. 31, 2016, up 5.86 percent or $150 million from year-ago. Shareholders equity stood at $11,969 million as on Dec. 31, 2016, up 1.81 percent or $213 million from year-ago. As a result, debt to equity ratio went up 1 basis points to 0.23 percent in the quarter from 0.22 percent in the last year period.
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