CNA Surety, an insurance holding company, has reported a net income for the second quarter of 2008 of $24.1 million, or $0.54 per diluted share, an increase as compared to $21.9 million, or $0.50 per diluted share for the same quarter in 2007.
The company said that the increase in net income reflects higher earned premium, higher net investment income, and the impact of a lower expense ratio.
For the quarter ended June 30, 2008, gross written premiums decreased 1.3% to $124.3 million compared to $125.9 million for the quarter ended June 30, 2007. Meanwhile, net written premiums increased slightly to $116.4 million from the second quarter of 2007 as the decrease in gross written premium was more than offset by lower reinsurance costs.
Net investment income for the quarter was $11.7 million as against $10.8 million during the comparable quarter of 2007 due to an increase in invested assets.
Net income for the six months ended June 30, 2008 improved to $47 million, or $1.06 per diluted share from $42.6 million, or $0.96 per diluted share for the same period in 2007.
For the period, gross written premiums decreased 1.4% to $240.9 million from the comparable period of 2007. Likewise, net written premiums for the same periods declined slightly to $224.8 million. Net investment income for the six months increased 9.5% to $23.5 million compared to $21.5 million for the same period in 2007.
John Welch, president and CEO of CNA, said: CNA Surety continues to produce strong results despite continued weakness in the US economy. Although economic conditions are putting pressure on our top line, our bottom line has once again improved.