CNA reports record earnings for the first quarter.CHICAGO--(BUSINESS WIRE)--May 1, 1996--CNA Financial Corp. reported net income of $329.3 million, or $5.30 per share, for the first three months of 1996, compared with net income of $152.8 million, or $2.44 per share, for the first three months of 1995. The results for the first quarter of 1996 cited here and below include the results of The Continental Corp. The merger of The Continental Corp. and 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. was consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. on May 10, 1995. Net income excluding net realized investment gains for the first quarter of 1996 was $145.3 million, or $2.32 per share, compared with 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. of $131.6 million, or $2.10 per share, for the same quarter in 1995. Net realized investment gains for the first quarter of 1996 amounted to $184.0 million, or $2.98 per share, compared with net realized investment gains of $21.2 million, or 34 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the same period in 1995. 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 the first three months increased to $4.3 billion, from $3.1 billion for the same period in 1995. Consolidated revenues, excluding realized investment gains/losses, increased in the first quarter to $4.0 billion compared with $3.0 billion for the same quarter in 1995. 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 of the CNA (Certified NetWare Administrator) See Novell certification. Insurance Companies, said, "CNA continues to build on the positive earnings momentum generated in 1995. First quarter 1996 earnings set a record for CNA. Our businesses performed well as we neared the one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants anniversary of the CNA-Continental merger." Chookaszian said, "CNA is on track to achieve the economic benefits of the transaction. We reached our goal of completing the major merger activities in a one-year time frame, and the activities still in progress are moving along well." Chookaszian indicated that CNA earnings for the first quarter of 1996 reflected satisfactory operating results, in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). losses from winter storms. Earnings were also bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by substantial capital gains. 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 Corp., said, "The financial strength of CNA's insurance operations are reflected in the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of $250 million in long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. during the first quarter of 1996. In an increasingly competitive insurance environment, CNA is well positioned for continued success." -0-
CNA FINANCIAL CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
____________________________________________________________________
THREE MONTHS ENDED MARCH 31
(In millions of dollars, except per share data) 1996 1995(1) ____________________________________________________________________
Revenues:
Premiums $ 3,293.1 $ 2,516.0
Net investment income 577.5 430.9
Realized investment gains 305.2 35.8
Other 139.6 70.1
_________ _________
4,315.4 3,052.8
_________ _________
Benefits and expenses:
Insurance claims and policyholders' benefits 2,786.9 2,155.7
Other operating expenses 1,046.1 695.0
_________ _________
3,833.0 2,850.7
_________ _________
Income before income tax 482.4 202.1
Income tax expense (153.1) (49.3)
_________ _________
Net income $ 329.3 $ 152.8
____________________________________________________________________
____________________________________________________________________
EARNINGS PER SHARE $ 5.30 $ 2.44
_________ _________
_________ _________
Weighted average outstanding shares of
common stock (in millions of shares) 61.8 61.8
_________ _________
_________ _________
(1) Excludes the results of The Continental Corporation
____________________________________________________________________
CNA FINANCIAL CORPORATION 1996 1995(1)
_____________________ _____________________
In Earnings In Earnings
Millions Per Share Millions Per Share
____________________________________________________________________
THREE MONTHS ENDED MARCH 31
___________________________
Revenues $ 4,315.4 $ -- $ 3,052.8 $ --
Net income excluding
net realized investment
gains/losses 145.3 $ 2.32 131.6 $ 2.10
Net realized investment
gains 184.0 2.98 21.2 .34
_________ _________ _________ _________
Net income $ 329.3 $ 5.30 $ 152.8 $ 2.44
_________ _________ _________ _________
____________________________________________________________________ FINANCIAL POSITION March 31, December 31, (In millions of dollars, except per share data) 1996 1995 ____________________________________________________________________ Assets 61,913.2 59,901.7 Stockholders' equity 6,464.2 6,735.5 Unrealized appreciation (depreciation) included in stockholders' equity 334.1 933.1 Book value per common share 102.17 106.56 ____________________________________________________________________ SUPPLEMENTAL FINANCIAL DATA THREE MONTHS ENDED MARCH 31 1996 1995(1) (In millions of dollars) ____________________________________________________________________ NET INCOME (LOSS) (EXCLUDING NET REALIZED INVESTMENT GAINS/LOSSES):
Property and Casualty $ 151.6 $ 117.9
Life 28.9 25.0
_________ _________
Total insurance 180.5 142.9
Interest expense and other (35.2) (11.3)
_________ _________
$ 145.3 $ 131.6
_________ _________
_________ _________
REALIZED INVESTMENT GAINS (LOSSES),
NET OF TAX AND POLICYHOLDERS' INTEREST:
Property and Casualty $ 134.5 $ 9.0
Life 48.9 11.5
_________ _________
Total insurance 183.4 20.5
Other 0.6 0.7
_________ _________
$ 184.0 $ 21.2
_________ _________
_________ _________
(1) Excludes the results of The Continental Corporation
CNA FINANCIAL CORPORATION
____________________________________________________________________ SUPPLEMENTAL STATUTORY DATA - OPERATIONS(1) FIRST QUARTER PERIOD ENDED MARCH 31 1996 1995 (In millions of dollars, except ratios) ____________________________________________ _____________________ Property/Casualty affiliates: Premiums written $ 2,671.0 $ 2,548.1 Premiums earned 2,497.5 2,608.2 Underwriting loss (255.1) (237.4) Investment income 468.0 478.7 Trade ratios: Loss 78.2 78.4 Combined (before policyholder dividends) 106.7 107.2 Dividends to policyholders 1.2 2.2 Life affiliates: Premium income 886.5 761.2 CNA Insurance Companies Net Written Premium Volume __________________________________________________ Property/Casualty affiliates: Commercial $ 2,167 $ 2,025 Personal 397 405 Involuntary risks 107 118
Life affiliates:
Individual 183 146
Group 704 615
_________ _________
$ 3,558 $ 3,309
_________ _________
_________ _________
____________________________________________________________________
SUPPLEMENTAL STATUTORY DATA -
FINANCIAL POSITION(1) March 31, December 31,
1996 1995
(In millions of dollars, except ratios)
____________________________________________________________________
Property/Casualty affiliates:
Statutory surplus $ 5,610.4 $ 5,694.2
Written to surplus ratio 1.7 1.7
Claim and claim expense reserves 24,768.4 24,955.0 Ratio of reserves to twelve months premium revenue 2.5 2.5 Life affiliates: Statutory surplus 1,142.6 1,127.6 Life insurance in force 179,045.5 166,046.5 ____________________________________________________________________
(1) Statutory data includes The Continental Corp.'s results for full
periods for both 1996 and 1995.
CONTACT: CNA Financial Corp. Kevin KEVIN Keepers of the Eternal Vigilance of the Islamic Nation (fictional, from White Teeth by Zadie Smith) C. Shyne, 312/822-7402 David B. Thomson, 312/822-2084 |
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