(RTTNews) -  CNA Surety Corp. (SUR: News ) Friday reported a decline in profit for the third quarter, despite a rise in revenues, mainly reflecting higher loss adjustment and brokerage and underwriting expenses.

Net income for the third quarter declined to $25.52 million or $0.57 per share from $34.33 million or $0.78 per share in the previous year.

Total revenues for the quarter rose to $123.29 million from $121.30 million last year.

Net earned premiums were $109.70 million, flat with the previous year. Net investment income increased to $12.54 million from $11.78 million a year ago. Net realized investment gains were $1.06 million, compared to a loss of $0.18 million last year.

For the quarter, gross written premiums decreased 5.8%, compared to the third quarter 2008.
Total expenses rose to $86.92 million from $70.95 million in the previous year. Net loss and loss adjustment expenses increased to $24.43 million from $8.74 million a year ago. Net commissions, brokerage and other underwriting expenses were $62.17 million, up from $61.69 million last year.

For the nine-month period, net income declined to $68.55 million or $1.54 per share from $81.28 million or $1.84 per share in the same period of the previous year. Total revenues declined to $354.85 million from $355.90 million last year.

SUR is currently trading at $14.49, up 0.25 or 1.76%, on a volume of 56K shares on the NYSE.

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by RTT Staff Writer

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