CNA Financial Overview
Stock Ticker Symbol: CAN
52 week high: $28.60
52 week low: $21.21
Financial Synopsis and History
CNA Financial Corporation is principally engaged in the underwriting of property, casualty, life and accident and health insurance coverages, as well as pension products and annuities. For the three months ended 3/31/03, revenues fell 17% to $2.85 billion. Net income from continuing operations before acct. change applicable to Common fell 39% to $68 million. Results reflect a decrease in premiums earned, losses on investments, and higher amortization of deferred acquisition costs.
2002 Compared with 2001
Net operating income increased by $82 million in 2002 as compared with 2001. Included in the 2001 results were $35 million related to the WTC event and $27 million related to restructuring and other related charges. Excluding these 2001 significant items, net operating results improved $20 million due primarily to growth in the disability and long term care products, increased net investment income and diminished losses due to the exit of unprofitable variable life and annuity lines of business. Net operating results also improved due to favorable reserve development relating to the WTC event of $4 million after-tax recorded in 2002. Partially offsetting these improvements was net unfavorable reserve strengthening in Group Benefits due to unfavorable mortality trends.
Net earned premiums for Group Operations decreased $1,051 million for 2002 as compared with 2001. This decline was due primarily to the transfer of the Mail Handlers Plan partially offset by an increase in premiums in the disability and long term care products within Group Benefits. Net earned premiums for the Mail Handlers Plan was $1,151 million as compared with $2,218 million in 2001. Deposits for Group Operations decreased $41 million for 2002 as compared with 2001 primarily due to reduced sales of S&P 500 ® contracts in Institutional Markets.
Net operating income increased by $31 million in 2002 as compared with 2001. Included in the 2001 results were $19 million related to restructuring and other related charges and $14 million related to the WTC event. Excluding these 2001 significant items, net operating results decreased $2 million due primarily to net reserve strengthening for individual long term care, unfavorable individual long term care morbidity and increased costs related to the life settlement business in 2002. These decreases were partially offset by higher net investment income, a decrease in reinsurance charges, favorable reserve development relating to the WTC event of $10 million after-tax recorded in 2002 as compared with 2001, and a $1 million after-tax reduction of the accrual for restructuring and other related charges recorded in 2002.
Sales volume for Life Operations decreased by $13 million in 2002 as compared with 2001. This decrease was attributable primarily to lower sales of structured settlement annuities, partially offset by increased sales in the individual long term care product. Net earned premiums increased $57 million in 2002 as compared with 2001 attributable primarily to growth in the individual long term care product partially offset by sales declines in structured settlement annuities.
As a result of recent experience and the fourth quarter reserve strengthening of $35 million pretax for individual long term care, the Company is undertaking a full review of its product offerings in this line. The focus is to determine whether the current products provide adequate pricing flexibility under the range of reasonably possible claims experience levels. Until this review is completed, the company intends to significantly reduce new sales of this product. Premium will continue to be received on inforce business, but the actions to reduce new business will lower the rate of overall premium growth for this line. The outcome of the Company's review and potential future actions could have a material adverse effect on CNA's results of operations
CNA Financial Overview
Date |
Open |
High |
Low |
Close |
Volume |
Adj. Close |
Jul 03 |
24.62 |
25.65 |
24.25 |
25.05 |
166,736 |
25.05 |
Jun 03 |
24.75 |
26.50 |
24.11 |
24.60 |
270,504 |
24.60 |
May 03 |
23.95 |
24.96 |
22.52 |
24.28 |
208,476 |
24.28 |
Apr 03 |
22.48 |
24.78 |
22.26 |
23.95 |
144,709 |
23.95 |
Mar 03 |
23.50 |
23.80 |
21.21 |
22.40 |
173,295 |
22.40 |
Feb 03 |
24.35 |
24.78 |
22.21 |
22.99 |
166,678 |
22.99 |
Jan 03 |
25.95 |
27.35 |
23.85 |
24.30 |
168,836 |
24.30 |
Dec 02 |
24.90 |
26.90 |
23.60 |
25.60 |
289,010 |
25.60 |
Nov 02 |
26.34 |
26.50 |
22.95 |
24.78 |
254,585 |
24.78 |
Oct 02 |
25.00 |
28.35 |
23.17 |
26.33 |
245,021 |
26.33 |
Sep 02 |
27.20 |
27.95 |
24.07 |
25.00 |
184,710 |
25.00 |
Aug 02 |
25.33 |
28.60 |
23.82 |
27.41 |
256,895 |
27.41 |
Jul 02 |
26.75 |
27.20 |
21.45 |
25.32 |
209,054 |
25.32 |
Growth Rates |
|||
. |
1 year |
3 years |
5 years |
Sales % |
-6.14 |
-9.14 |
-6.51 |
EPS % |
NM |
81.44 |
-26.56 |
Dividend % |
NM |
NM |
NM |
*NM is an abbreviation for "Not Meaningful."
*Data from MultexInvestor.com, and finance.yahoo.com. Information obtained from media.corporate-ir.net.