US commercial p/c group CNA Financial swung to 2009 net income of $419m from a year-earlier loss of $299m, as net realized investment losses fell to $561m from $841m. Operating income for the year grew 84% to $982m on net earned premiums of $6.72bn, down 6%, and claims losses of $5.29bn, down 7.6%. The Chicago-based group's combined ratio improved to 96.9% from 98%, as its loss ratio improved to 64% from 68.2%.

The joint liquidators of failed Caribbean insurer Dyoll are suing Aon Benfield Canada (formerly Aon Re Canada) for $19.86m for "negligence, alternatively breach of contract, arising out of activities as reinsurance broker to Dyoll". John Lee of PricewaterhouseCoopers said that creditors had in the past four years received payments totalling 70 cents on the dollar, and that it was now "looking at who was responsible, if anyone, for the collapse of Dyoll Insurance". Mr Lee said that he and the other liquidator, Cayman Islands-based Kenneth Krys, had looked for causes of the collapse, which came in the wake of losses incurred as a result of hurricane Ivan in 2004, and had concluded that "the reinsurance that Dyoll bought was inadequate". Mr Lee said that "we looked to see who advised to the type of reinsurance to purchase and that was Aon Re". In a letter to Dyoll creditors, the liquidator said that legal action was the only resort because little progress had been made in negotiations with Aon Re for an out-of-court settlement. He added that the joint liquidators had received legal advice from a reinsurance expert and leading UK legal counsel, both of whom said that there were "good grounds" to pursue a claim. The joint liquidators said that they "have made adequate provision for the potential costs of the litigation and are in a position to pursue this claim vigorously". In a statement to Insurance Day, Aon Benfield confirmed legal proceedings had commenced, before adding: "It is Aon Benfield's position that the allegations in the lawsuit are totally without merit." The litigation will not affect Jamaican coffee farmers, who have already settled.

US p/c and life group Hartford Financial saw its 2009 net loss fall 68% to $887m from the year-earlier $2.75bn, helped by a Q4 in which improved equity markets and p/c operations swung results to net income of $557m from a loss of $806m. For the year, total earned premiums fell 7% to $14.42bn, while revenues, including mark-to-market tabulations and unrealized losses, more than doubled to $24.70bn from $9.22bn. The group's p/c division had net income of $983m, more than 10 times the prior-year $92m, on earned premiums of $9.86bn, down 5%, and claims losses of $6.41bn, down 4.4%. Hartford's life operations for the year posted a net loss of $1.29bn, down 47%,  as revenues swung to $13.73bn from a negative $1.15bn and net outlays for benefits and expenses jumped to $16.01bn from $2.94bn. The group projected that 2010 operating income would be in a range of $3.70 to $4.00 a share, against analysts' estimate of $3.96 a share.

Bermudian re/insurer Axis Capital Holdings saw 2009 net income rise by 32% to $461m, reflecting a 71% jump in underwriting income to $524.6m and an 88% increase in investment income to $464.5m. Those positive results were partially offset by a more than doubling of net realized investment losses to $311.6m. The rise in underwriting income stemmed from a 4% increase in earned premiums to $2.79bn and a 17% decline in claim losses and loss expenses to $1.42, assisted by the benign Atlantic hurricane season. The combined ratio for the year improved to 79.3% from 89.8%. The group's reinsurance operations accounted for $440.5m of total underwriting income, more than tripling the prior-year $119.4m owing to an 8.6% rise in earned premiums to $1.63bn and a 23% decline in claim losses to $811.2m.