CNA Reports Earnings for Fourth Quarter 1997.CHICAGO--(BUSINESS WIRE)--Feb. 18, 1998--CNA Financial Corp. (NYSE NYSE See: New York Stock Exchange :CNA (Certified NetWare Administrator) See Novell certification. ) announced that net income for 1997 was $966 million, or $15.52 per share, compared with $965 million, or $15.51 per share, for 1996. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues for 1997 and 1996 were $17.1 billion and $17.0 billion, respectively. Net income for the fourth quarter of 1997 was $279 million, or $4.48 per share, compared with $195 million, or $3.13 per share, for the comparable period in 1996. Consolidated revenues for the fourth quarter of 1997 and 1996 were $4.4 billion and $4.3 billion, respectively. Net realized investment gains for 1997 were $478 million, or $7.74 per share, compared with net realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. of $387 million, or $6.26 per share, for 1996. Net realized investment gains for the fourth quarter of 1997 were $174 million, or $2.82 per share, compared with $75 million, or $1.21 per share, for the same period in 1996. Net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for 1997, exclusive of net realized investment gains, amounted to $488 million, or $7.78 per share, compared with $578 million, or $9.25 per share, for 1996. Net operating income for the fourth quarter of 1997 amounted to $105 million, or $1.66 per share, compared with $120 million, or $1.92 per share, for the fourth quarter of 1996. Stockholders' Equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. increased in 1997 by $1.2 billion from $7.1 billion to $8.3 billion. The increase is primarily the result of net income of $966 million and a change in net unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. of $290 million. Book value per common share Book Value Per Common Share A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: increased to $132.02 per share from $111.81 per share for the same period. "CNA continues as a profitable market leader in the face of the most saturated saturated /sat·u·rat·ed/ (sach´ah-rat?ed) 1. denoting a chemical compound that has only single bonds and no double or triple bonds between atoms. 2. unable to hold in solution any more of a given substance. , competitively priced commercial marketplace in recent history," said Dennis Dennis is a male first name derived from the Greco-Roman name Dionysius meaning "servant of Dionysus", the Thracian god of wine, which is ultimately derived from the Greek Dios (Διος, "of Zeus") combined with Nysos or Nysa (Νυσα), where the H. Chookaszian, chairman and chief executive officer, CNA. "Our results for the quarter and the year reflect the effects of these market conditions offset in part by lower than normal catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). activity. In addition, we achieved strong investment returns through investment income and significant capital gains. Overall, we maintained market share, produced a solid profit, and maintained the quality of our business to position us for long term growth." "Once again CNA's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. focus has been successful in the delivery of increased enterprise value, while maintaining the integrity of its balance sheet," said Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide J. Noha, chairman of the board, CNA Financial CNA Financial Corporation (NYSE: CNA) is a financial corporation based in Chicago, Illinois, United States, and noted for its 600 foot tall red headquarters building there. Its principal subsidiary, Continental Casualty Company (CCC) was founded in 1897. Corp. "CNA's continued practice of managing its investment portfolio to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. total return from investment income and capital gains coupled with favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market conditions resulted in strong overall investment returns for the fourth quarter and for the year." TABLES FOLLOW. -0-
____________________________________________________________________
CNA FINANCIAL CORPORATION
1997 1996
_____________________ ___________________
In Earnings In Earnings
Millions Per Share Millions Per Share
___________________________________________________________________
THREE MONTHS ENDED DECEMBER 31
______________________________
Revenues $ 4,388 - $ 4,322 -
Net income excluding
net realized
investment gains/losses 105 $ 1.66 120 $ 1.92
Net realized
investment gains 174 2.82 75 1.21
_______ _______ _______ _______
Net income $ 279 $ 4.48 $ 195 $ 3.13
_______ _______ _______ _______
TWELVE MONTHS ENDED DECEMBER 31
_______________________________
Revenues $17,072 - $16,988 -
Net income excluding
net realized
investment gains/losses 488 $ 7.78 578 $ 9.25
Net realized
investment gains 478 7.74 387 6.26
_______ _______ _______ _______
Net income $ 966 $ 15.52 $ 965 $ 15.51
_______ _______ _______ _______
____________________________________________________________________
FINANCIAL POSITION
December 31 1997 1996
(In millions of dollars, except per share data)
____________________________________________________________________
Assets $ 61,172 $ 60,300
Stockholders' equity 8,309 7,060
Net unrealized appreciation
included in stockholders'
equity 589 299
Book value per common share 132.02 111.81
____________________________________________________________________
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SUPPLEMENTAL FINANCIAL DATA FOURTH QUARTER TWELVE MONTHS
PERIOD ENDED DECEMBER 31 1997 1996 1997 1996
(In millions of dollars)
____________________________________________________________________
NET INCOME (EXCLUDING NET
REALIZED INVESTMENT
GAINS/LOSSES):
Property and Casualty $ 116 $ 113 $ 501 $ 576
Life 29 32 100 110
_______ _______ _______ _______
Total insurance 145 145 601 686
Interest expense
and other (40) (25) (113) (108)
_______ _______ _______ _______
$ 105 $ 120 $ 488 $ 578
_______ _______ _______ _______
_______ _______ _______ _______
REALIZED INVESTMENT
GAINS (LOSSES),
NET OF TAX AND
POLICYHOLDERS'
INTEREST:
Property and Casualty $ 163 $ 71 $ 384 $ 303
Life 23 17 96 96
_______ _______ _______ ______
Total Insurance 186 88 480 399
Other (12) (13) (2) (12)
_______ _______ _______ ______
$ 174 $ 75 $ 478 387
_______ _______ _______ ______
_______ _______ _______ ______
CNA FINANCIAL CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
PERIOD ENDED DECEMBER 31 FOURTH QUARTER TWELVE MONTHS
1997 1996 1997 1996
(In millions of dollars,
except per share data)
_________________________________________________________________
Revenues:
Premiums $ 3,331 $ 3,430 $ 13,362 $ 13,479
Net investment income 568 600 2,209 2,276
Realized investment gains 278 132 753 619
Other 211 160 748 614
________ ________ ________ ________
4,388 4,322 17,072 16,988
________ ________ ________ ________
Benefits and expenses:
Insurance claims and
policyholders' benefits 2,661 2,970 11,268 11,371
Other operating expenses 1,332 1,079 4,446 4,272
________ ________ ________ ________
3,993 4,049 15,714 15,643
________ ________ ________ ________
Income before income
tax 395 273 1,358 1,345
Income tax expense 116 78 392 380
________ ________ ________ ________
Net income $ 279 $ 195 $ 966 $ 965
________ ________ ________ ________
________ ________ ________ ________
EARNINGS PER SHARE
Net income $ 4.48 $ 3.13 $ 15.52 $ 15.51
________ ________ ________ ________
________ ________ ________ ________
Weighted average
outstanding shares of
common stock (in millions
of shares) 61.8 61.8 61.8 61.8
________ ________ ________ ________
________ ________ ________ ________
CNA FINANCIAL CORPORATION
SUPPLEMENTAL STATUTORY DATA-
OPERATIONS FOURTH QUARTER TWELVE MONTHS
PERIOD ENDED DECEMBER 31 1997 1996 1997 1996
Property/Casualty Companies
Premiums written $ 2,221 $ 2,658 $ 10,284 $ 10,572
Premiums earned 2,462 2,628 10,002 10,247
Underwriting loss (116) (316) (990) (1,036)
Investment income 592 452 1,879 1,788
Trade ratios:
Loss 74.5 77.5 77.5 76.8
Combined (before
policyholder dividends) 107.6 108.0 108.2 107.2
Dividends to policyholders 0.4 2.0 0.8 1.4
Life Companies
Premium income 958 972 3,727 3,745
CNA Insurance Net Premium
Volume
_________________________
Property/Casualty:
Commercial $ 1,871 $ 2,180 $ 8,668 $ 8,612
Personal 388 413 1,775 1,731
Involuntary Risks (38) 65 (159) 229
Life:
Individual 221 252 892 872
Group 737 720 2,835 2,873
________ ________ ________ ________
$ 3,179 $ 3,630 $ 14,011 $ 14,317
________ ________ ________ ________
________ ________ ________ ________
SUPPLEMENTAL STATUTORY DATA - FINANCIAL POSITION
DECEMBER 31 DECEMBER 31
1997 1996
___________ ___________
(In millions of dollars,
except ratios)
Property/Casualty:
Casualty Companies
Statutory surplus $ 7,123 $ 6,349
Written to surplus ratio 1.4 1.6
Claim and claim expense
reserves 24,088 23,735
Ratio of reserves to twelve
months premium revenue 2.4 2.3
Life:
Statutory surplus 1,224 1,163
Life insurance in force 311,598 237,009
CONTACT: CNA Deborah Deborah (dĕb`ōrə), in the Bible, prophetess and judge of Israel, the only woman to hold that office. Under her guidance Barak conquered Sisera and delivered Israel from the oppression of the Canaanite King Jabin. Kamp KAMP Known As Male Prostitute (analyst), 312/822-7752 Roger Morris (media), 312/822-4195 Clark Walter Wal·ter , Bruno 1876-1962. German conductor noted for his interpretations of Mozart and Mahler. Noun 1. Walter - German conductor (1876-1962) Bruno Walter , 312/822-1454 |
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