CNA's profit sinks 37 percent in 1Q on investment losses

NEW YORK—CNA Financial Corp.'s profit tumbled 37 percent in the first quarter as tumultuous markets rattled the insurer's investment portfolio and competition squeezed premiums, the company said Monday.

CNA Financial earned $187 million, or 69 cents per share, in the first quarter, compared with profit of $296 million, or $1.09 per share, in the first quarter last year.

Operating income, which insurers emphasize because they say it better represents the health of an underwriter's business, was 82 cents per share. Analysts polled by Thomson Financial forecast profit of $1.04 per share.

CNA collected $2.13 billion in premiums, an 11 percent decline from the first quarter last year.

Of each premium dollar collected, CNA spent 98.1 cents administering claims, up 3 cents from the first quarter last year.

Weaker returns on the company's roughly $31 billion investment portfolio hurt profit. Like most insurers, CNA parks the premiums it collects in investments such as bonds.