CNA Financial Corporation (NYSE: CNA) today announced a net operating loss of $7 million and a net loss of $9 million, or $0.03 per common share, for the fourth quarter 2012. Full year 2012 net operating income was $587 million and net income was $628 million, or $2.18 and $2.33 per common share.
Property & Casualty Operations combined ratio for the fourth quarter and full year was 116.1% and 105.0%, respectively. Book value per common share was $45.71 at December 31, 2012 as compared with $42.66 at December 31, 2011.
CNA Financial also declared a quarterly dividend of $0.20 per share, payable March 7, 2013 to stockholders of record on February 21, 2013.
|Results for the Three Months||Results for the Year Ended|
Ended December 31 (a)
December 31 (a)
|($ millions, except for per share amounts)||2012||2011 (b)||2012||2011 (b)|
|Net operating income (loss)||$||(7||)||$||192||$||587||$||610|
|Net income (loss)||(9||)||193||628||612|
|Net operating income (loss) per diluted share||(0.03||)||0.71||2.18||2.26|
|Net income (loss) per diluted share||(0.03||)||0.71||2.33||2.27|
|Dec. 31||Dec. 31|
|Book value per share||$||45.71||$||42.66||7||%|
|Book value per share excluding AOCI||42.62||40.88||4|
References to net operating income (loss), net realized investment gains (losses) and net income (loss) used in this press release reflect amounts attributable to CNA, unless otherwise noted. Management utilizes the net operating income financial measure to monitor the Company's operations. Please refer to Note K in the Condensed Consolidated Financial Statements within the September 30, 2012 Form 10-Q for further discussion of this measure.
The Company has adjusted its previously reported financial information included herein to reflect a retrospective change in accounting guidance for deferred acquisition costs. Financial information included herein gives effect to this adjustment. For the three and twelve months ended December 31, 2011, the impacts of adopting the new accounting standard were a $1 million increase and $4 million decrease in Net operating income, a $3 million increase and $2 million decrease in Net income and $0.01 increase and a $0.01 decrease in Net income per diluted share. Book value per share at December 31, 2011 decreased $0.26.
Property & Casualty Operations' net operating income was $60 million for the fourth quarter of 2012 as compared with $345 million in the prior year quarter. This decrease was primarily due to the impact of losses from Storm Sandy as well as a decreased level of favorable net prior year development. This was partially offset by higher net investment income. The Storm Sandy impact for the fourth quarter of 2012, including reinstatement premiums, was $190 million after-tax as compared with catastrophe losses of $11 million after-tax in the prior year quarter.
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