CNA Suspends Dividend, Raises Capital

It reported $168 million in catastrophe losses during the third quarter, compared to $7 million in the same quarter a year ago. Net earned premium was down 4% to $1.8 billion during the quarter, with declines across both standard and specialty lines of business. Policy rates decreased an average of 5% on standard commercial lines and 3% on specialty lines. As a result, net operating income was down 60% to $83 million from $212 million a year ago.

Net realized losses on investments climbed to $423 million compared to $71 million during the second quarter. In its press release, the company indicated that $198 million of the loss related to securities issued by Fannie Mae(FNM Quote) and Freddie Mac(FRE Quote); $65 million to securities issued by Washington Mutual; and $23 million to securities issued by AIG(AIG Quote).

Shares of CNA are down nearly 48% on the year and off 23% to $13.66 in recent trading Monday.

TheStreet.com rates the financial strength of 16 CNA property/casualty and life subsidiaries all rated C or C+.

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