CNA Financial Corp NYSE:CNA Price, Chart, News & Insight

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CNA Financial Falls 1.6% as Long-Term Care Reserve Charge and Weaker Underwriting Pressure Earnings

CNA Financial (NYSE: CNA) shares fell about 1.6% after the insurer reported a sharp decline in third-quarter 2026 earnings, driven by a long-term care reserve charge, weaker Property & Casualty underwriting and higher catastrophe losses.

Net income fell to $196 million, or $0.72 per share, from $403 million, or $1.48 per share, a year earlier. Core income declined to $203 million, or $0.75 per share, from $409 million, or $1.50 per share.

Property & Casualty core income decreased to $397 million from $456 million. The combined ratio worsened to 97.0% from 92.8%, while the underlying combined ratio increased to 94.2% from 91.3%. Catastrophe losses rose to $78 million pretax from $41 million, and the underlying loss ratio increased 2.2 points to 64.1%.

The largest earnings drag came from the Life & Group segment, which posted a core loss of $171 million versus a $22 million loss a year earlier. Results included a $137 million after-tax impact from CNA’s annual long-term care reserve assumption update. Management said recent investment portfolio actions are expected to almost entirely offset the economic impact over time, although that benefit is not reflected in current-period GAAP earnings.

Net written premiums in the P&C business increased 3%, with renewal premium changes of 3% and written rate growth of 2%. Net investment income totaled $635 million, supported by higher fixed-income income but partially offset by weaker limited partnership and equity returns.

The 1.6% decline appears to reflect the steep drop in earnings, deterioration in underwriting metrics and the sizable long-term care reserve charge. While management emphasized that the reserve impact should be largely offset economically by higher future investment income, investors appear to be focusing on the immediate pressure on profitability and the weaker combined ratio.

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WS Investor 11-02-26

CNA Financial Corporation reported strong results for the fourth quarter and full year of 2025, alongside higher shareholder distributions.

CNA posted fourth-quarter net income of $302 million, or $1.11 per share, compared with $21 million a year earlier, which had been weighed down by a large after-tax pension settlement loss. Core income for the quarter was $317 million, or $1.16 per share. Property & Casualty core income totaled $449 million, supported by higher net investment income, while net written premiums rose 2% and the combined ratio stood at 93.8%. Life & Group and Corporate & Other segments both reported core losses.

For full-year 2025, CNA achieved record net income of $1.28 billion, or $4.69 per share, and record core income of $1.34 billion, or $4.93 per share. Property & Casualty core income increased to $1.66 billion, driven by improved underwriting and higher investment income, with net written premiums up 5% and a combined ratio of 94.7%. Net investment income reached $2.56 billion for the year.

CNA ended 2025 with book value per share of $42.93, or $46.99 excluding AOCI, representing about a 10% increase after dividends. The company raised its regular quarterly dividend by 4% to $0.48 per share and declared a special dividend of $2.00 per share, both payable on March 12, 2026.

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Global Finance News 02-09-26

CNA Financial Reports Lower Q1 2025 Earnings Amid Higher Catastrophe Losses

CNA Financial posted Q1 2025 net income of $274 million (1.00 dollars per share), down from 338 million dollars (1.24 dollars per share) in the same quarter last year. Core income also declined to 281 million dollars (1.03 dollars per share) from 355 million dollars (1.30 dollars per share). The Property and Casualty segment's core income fell to 311 million dollars, reflecting lower underwriting results partially offset by stronger investment income.

The P and C combined ratio rose to 98.4 percent from 94.6 percent, impacted by 3.8 points of catastrophe losses in both periods and a 2.5-point hit from unfavorable prior period development, particularly in commercial auto. Catastrophe losses totaled 97 million dollars, including 53 million dollars from California wildfires.

Gross written premiums excluding third-party captives rose 7 percent, while net written premiums increased 9 percent. The underlying P and C combined ratio increased to 92.1 percent from 91.0 percent, with new business up 7 percent to 565 million dollars.

Segment performance:

* Specialty: Combined ratio rose to 95.1 percent due to increased expenses and prior period development. Gross and net written premiums each rose 6 percent.
* Commercial: Reported an underwriting loss of 17 million dollars and a combined ratio of 101.1 percent, driven by a 3.8-point impact from prior development. Net written premiums grew 12 percent.
* International: Combined ratio increased to 95.4 percent. Gross written premiums remained flat, while net written premiums rose 2 percent.
* Life and Group: Core income stable at 6 million dollars.
* Corporate and Other: Core loss widened to 36 million dollars, including a 17 million dollar charge for legacy mass tort claims.

Net investment income dipped slightly to 604 million dollars from 609 million dollars due to weaker equity returns, offset by stronger fixed income. Book value per share was 37.98 dollars; excluding AOCI, it was 44.58 dollars, a 2 percent increase adjusted for dividends.

The company declared a regular quarterly dividend of 46 cents per share. Return on equity stood at 10.5 percent, and core return on equity was 9.2 percent, both lower than the prior year. Despite headwinds from catastrophe events, CNA emphasized strong underlying results and maintained a positive outlook for profitable growth in 2025.

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European Investor 05-05-25

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