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.