CNA Life Units Post Profits As Parent Reports $1.8 Billion Second Quarter Net Loss

Revenue is down because CNA sold a life reinsurance operation that was part of the unit in 2000. But droping unprofitable medical-related lines of business and ending unprofitable contracts with independent underwriting agencies helped increase the operating profits, CNA says.

The life unit, which sells term life, universal life, annuities and long-term care insurance, is reporting $27 million in net operating income on $442 million in revenue, compared with $49 million in net operating income on $431 million in revenue.

The effects of the stock market slump and interest rate cuts hurt investment income, and an increase in the death rate hurt the life insurance results, CNA says.

But premiums on the growing block of in-force long-term care insurance business and growing sales of guaranteed investment contracts sold to institutional customers helped offset the effects of the investment slump and the claims expenses, CNA says.