CNA Falls Most Since 2011 on Commercial Auto InsuranceCraig Giammona
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.