CNA swings to profit on fewer storms

CNA Financial Corp., the business insurer controlled by Loews Corp., swung to a third-quarter profit on fewer hurricane claims and improved investment income.

Net income of $263 million, or 86 cents a common share, compares with a loss of $331 million, or $1.23, in the same period a year earlier, the Chicago-based insurer said today in a statement distributed by Business Wire. Operating income, which excludes some investment results, was $1.11 a share.

CNA joins insurers including Travelers Cos. and Ace Ltd. in reporting improved results after hurricanes stayed away from U.S. shores. Only one named system, Tropical Storm Claudette, touched the U.S. in the three months ended Sept. 30. Last year, hurricanes Dolly, Gustav and Ike contributed to CNA's $168 million in third-quarter catastrophe costs.

Loews, the holding company run by New York's Tisch family, agreed to inject $1.25 billion into CNA a year ago after the insurer's third-quarter loss. Loews already owned about 90 percent of the insurer's common stock, and got preferred shares that pay a 10 percent dividend for its investment.