CNA Financial Corp falls most since 2011 on commercial auto insurance - Times of India

CNA Financial Corp (CNA), the insurer majority owned by Loews Corp (L), 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 per cent, to $39.76 in New York. Loews slipped 0.9 per cent 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 cert ain classes within our small-business segment slowed our overall progress."

CNA has declined 5 per cent this year, while New York-based Loews has dropped 9.3 per cent since December 31.

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