CNA Financial Corp., the insurer majority owned by Loews Corp., 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 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.