Mar 31, 2024

CNA Q1 2024 Earnings Report

CNA Financial reported a record first quarter core income, driven by growth in net investment income and strong P&C performance.

Key Takeaways

CNA Financial Corporation announced first quarter 2024 net income of $338 million, or $1.24 per share, versus $297 million, or $1.09 per share, in the prior year quarter. Core income for the quarter was $355 million, or $1.30 per share. The P&C segments produced core income of $372 million.

Net income increased by 14% to $338 million compared to $297 million in the prior year quarter.

Core income rose by 9% to $355 million, marking the best first quarter core income on record.

Net investment income grew by 16% to $609 million pretax.

P&C combined ratio was 94.6%, with an underlying combined ratio of 91.0%.

Total Revenue
$609M
Previous year: $3.15B
-80.7%
EPS
$1.3
Previous year: $1.19
+9.2%
Commercial Combined Ratio
97.6%
Previous year: 96%
+1.7%
Specialty Combined Ratio
90.7%
Previous year: 90%
+0.8%
International Combined Ratio
93.3%
Previous year: 97.2%
-4.0%
Gross Profit
$3.44B
Previous year: $3.15B
+9.3%
Cash and Equivalents
$409M
Previous year: $483M
-15.3%
Free Cash Flow
$484M
Previous year: $416M
+16.3%
Total Assets
$65.1B
Previous year: $62.1B
+4.9%

CNA

CNA

CNA Revenue by Segment

Forward Guidance

CNA anticipates robust opportunities for profitable growth and continued investment return improvements throughout the remainder of 2024.

Positive Outlook

  • Strong top and bottom line P&C performance
  • Property market remains very favorable
  • Casualty rate increases continue to accelerate
  • Retention remained strong at 85%
  • Renewal premium change was up a point to 6%

Challenges Ahead

  • Catastrophe losses were $88 million, or 3.8 points of the loss ratio
  • Growth in Specialty and International were each impacted by the protracted competitive pressures in management liability lines
  • Underlying combined ratio increased 0.2 points as compared with the prior year quarter
  • Underlying loss ratio increased 0.7 points as compared with the prior year quarter
  • The expense ratio increased 1.4 points driven by higher employee related costs partially offset by net earned premium growth of 9%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income