CNA Financial Posts 1Q Loss On Investment Charges

CHICAGO (AP) — Insurer CNA Financial Corp. posted a first-quarter loss on Monday due to mounting investment losses and a slowdown in written premiums.

CNA Financial lost $195 million, or 84 cents per share, for the quarter ended March 31 in contrast to a profit of $187 million, or 69 cents per share, a year ago.

The latest results include $344 million in losses tied to investments. The realized investment losses were mainly tied to continuing turmoil in the credit and financial markets, including asset-backed securities — bonds backed by pools of consumer loans or mortgages. Nearly all insurers are struggling with mounting investment losses amid the credit crisis and ongoing recession.

Excluding the investment losses, operating income was $149 million, or 56 cents per share, during the quarter. Operating income was $221 million, or 82 cents per share, during the year-ago period.

Analysts polled by Thomson Reuters, on average, forecast earnings of 26 cents per share for the quarter. Analysts estimates for insurance firms do not typically include investment losses as they are typically treated as noncore operations.