CNA, a subsidiary of the conglomerate Loews Corp. (L), booked a charge of $170 million due to a recognition of an active-life-reserve premium deficiency driven by changes in interest-rate assumptions. As a result, its life and group segment recorded a core loss of $122 million, compared with a core income of $32 million a year ago.
Active life reserves fund future claim obligations when combined with future net premiums and interest.
The company's net income decreased to $107 million, or 39 cents a share, from $336 million, or $1.23 a share, in the comparable quarter a year earlier.
Its property and casualty operations' core income fell to $241 million from $305 million a year ago.