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Mar 31, 2022

CNA Q1 2022 Earnings Report

CNA Financial reported a strong first quarter in 2022, marked by a 20% increase in core income and a combined ratio of 91.9%, the lowest in over five years.

Key Takeaways

CNA Financial Corporation announced first quarter 2022 net income of $313 million, or $1.15 per share, versus $312 million, or $1.14 per share, in the prior year quarter. Core income for the quarter was $316 million, or $1.16 per share, versus $263 million, or $0.96 per share, in the prior year quarter. The P&C combined ratio was 91.9%, the lowest in over five years.

Net income was $313 million, slightly up from $312 million in the prior year quarter.

Core income increased by 20% to $316 million compared to $263 million in the prior year quarter.

The P&C combined ratio was 91.9%, the lowest in over five years, compared to 98.1% in the prior year quarter.

Gross written premium growth, excluding third party captives, was 8%.

Total Revenue
$2.89B
Previous year: $2.87B
+0.7%
EPS
$1.16
Previous year: $0.96
+20.8%
Commercial Combined Ratio
94.5%
Previous year: 106.7%
-11.4%
Specialty Combined Ratio
88.7%
Previous year: 88.8%
-0.1%
International Combined Ratio
92.4%
Previous year: 95.9%
-3.6%
Gross Profit
$18M
Previous year: $2.87B
-99.4%
Cash and Equivalents
$361M
Previous year: $588M
-38.6%
Free Cash Flow
$633M
Previous year: $79M
+701.3%
Total Assets
$63.8B
Previous year: $63.7B
+0.1%

CNA

CNA

CNA Revenue by Segment

Forward Guidance

CNA Financial remains optimistic about market conditions and growth opportunities for the remainder of 2022.

Positive Outlook

  • Improved underlying P&C underwriting income.
  • Lower catastrophe losses.
  • Combined ratio of 91.9% was the lowest quarterly combined ratio in over five years.
  • Gross written premium growth ex captives was 8% in the quarter.
  • Earned rate increase of 9% remains comfortably above loss cost trends.

Challenges Ahead

  • Net investment income decreased $56 million compared with the prior year quarter.
  • Life & Group core income decreased $13 million.
  • Stockholders’ equity decreased 16% from year-end 2021.
  • Net unrealized investment gains decreased $1.6 billion after-tax.
  • Book value per share of $39.87 decreased 16% from year-end 2021.