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Mar 31, 2023
CNA Q1 2023 Earnings Report
CNA Financial reported a strong start to 2023, with core income up 9% and significant growth in net investment income and P&C underwriting gain.
Key Takeaways
CNA Financial Corporation announced first quarter 2023 net income of $297 million, or $1.09 per share, compared to $295 million, or $1.08 per share, in the prior year quarter. Core income increased by 9% to $325 million, or $1.19 per share, versus $298 million, or $1.09 per share, in the prior year quarter. The Property & Casualty segments' core income was $346 million, driven by higher investment income and record high pretax underlying underwriting income of $197 million.
Net income was $297 million, or $1.09 per share, compared to $295 million, or $1.08 per share in the prior year quarter.
Core income increased by 9% to $325 million, or $1.19 per share.
Net investment income increased by $77 million to $525 million.
P&C segments' core income was $346 million, driven by higher investment income and record high pretax underlying underwriting income of $197 million.
CNA
CNA
CNA Revenue by Geographic Location
Revenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
CNA Financial is optimistic about leveraging the continued favorable market conditions throughout the remainder of 2023, given the strong start to the year, improved pricing in Commercial lines, and the tailwind from higher fixed income yields.
Positive Outlook
- Strong production results across the business
- Core income up 9% to $325 million
- Net investment income increased $77 million over the first quarter of 2022
- P&C underlying underwriting gain was up 19% to a record $197 million
- Overall P&C rate increase rebounded to 5%, up a point compared to the fourth quarter
Challenges Ahead
- Significantly elevated industry cat quarter
- Pretax catastrophe losses were $52 million or 2.4 points in the quarter
- Unfavorable prior period development
- Long term care policy buyouts
- Effect of lower interest rates on the fair value of fixed income securities