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.

Total Revenue
$2.87B
Previous year: $2.29B
+25.1%
EPS
$0.96
Previous year: $0.4
+140.0%
Commercial Combined Ratio
106.7%
Previous year: 101.9%
+4.7%
Specialty Combined Ratio
88.8%
Previous year: 91.3%
-2.7%
International Combined Ratio
95.9%
Previous year: 99.9%
-4.0%
Gross Profit
$2.87B
Previous year: $2.29B
+25.1%
Cash and Equivalents
$588M
Previous year: $857M
-31.4%
Free Cash Flow
$79M
Previous year: $209M
-62.2%
Total Assets
$63.7B
Previous year: $58.4B
+9.1%

CNA

CNA

CNA Revenue by Segment

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.