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Mar 31, 2021
CNA Q1 2021 Earnings Report
CNA Financial announced first quarter 2021 net income and core income, with property & casualty segments contributing significantly due to higher net investment income and improved underwriting results, offset by catastrophe losses.
Key Takeaways
CNA Financial reported a net income of $312 million, or $1.14 per share, for the first quarter of 2021, a significant improvement compared to the net loss of $61 million in the prior year quarter. Core income was $263 million, or $0.96 per share, versus $108 million in the prior year quarter. The P&C combined ratio was 98.1%, including catastrophe loss impact.
Net income was $312 million, a significant increase from the prior year quarter's net loss of $61 million.
Core income reached $263 million, compared to $108 million in the same quarter of the previous year.
The P&C combined ratio was 98.1%, which included 6.8 points of catastrophe loss impact.
Net investment income was $504 million, including $61 million from limited partnerships and common stock.
CNA
CNA
CNA Revenue by Geographic Location
Revenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
CNA Financial expects favorable market conditions to persist and remains bullish about growth opportunities for the remainder of the year.
Positive Outlook
- Achieved the best underlying combined ratio in over 12 years.
- Experienced continued double-digit rate increases.
- Observed strong new business growth.
- Expects favorable market conditions to persist.
- Remains bullish about growth opportunities for the remainder of the year.
Challenges Ahead
- Substantially elevated catastrophes in the first quarter.
- Higher net catastrophe losses.
- Recognition of a $12 million after-tax loss from a legacy portfolio cession.
- Increased core loss in Corporate & Other segments due to the retroactive reinsurance agreement.
- Combined ratio increased 0.8 points as compared with the prior year quarter.