Net income at CNA Financial Corp. was down 50 percent for the third quarter of 2022 compared to the prior year quarter, while property/casualty core income grew on improved underwriting performance.

The insurance holding company reported net income of $128 million for the quarter versus $256 million in the 2021 period. The drop in net income includes $85 million of net investment losses.

P/C core income was $260 million compared to $217 million in the prior year quarter. P/C combined ratio improved to 95.8 versus 100 the prior year quarter. P/C segments, excluding third-party captives, generated gross written premium growth of 9 percent, or 10 percent excluding currency fluctuations.

Specialty combined ratio was 88.7 in the third quarter, the ninth straight quarter below 90. Commercial combined ratio was 101.9, an improvement from 111.6 in the third quarter of 2021.

“We are very pleased with our results in the quarter against a backdrop of continued pressure on equity markets and elevated industry catastrophe losses,” said CEO Dino Robusto. “We had strong top-line and bottom-line performance in our P/C segments, and we remain optimistic about our growth opportunities with continued strong pricing and terms and conditions.”

CNA reported Q3 catastrophe losses of $117 million, with Hurricane Ian accounting for $87 million of the total.

Robusto credited “disciplined re-underwriting and portfolio management strategies” for mitigating catastrophe losses.

Responding to an analyst, Robusto said, “We also, over the course of the last roughly 18 months, had exited from our property exposures on our aging services portfolio because that had a heavy coastal footprint and one that we just didn’t think we could get the right returns on based on the terms and conditions that were out there.”

Robusto said CNA and its reinsurers did well from a “property standpoint.” He expects that to be reflected in how reinsurers treat June 1 property treaty renewals.