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Jun 30, 2022
CNA Q2 2022 Earnings Report
CNA announced second quarter 2022 net income and core income, with P&C segments showing strong underwriting results and premium growth.
Key Takeaways
CNA Financial Corporation reported a net income of $205 million, or $0.75 per share, and a core income of $245 million, or $0.90 per share, for the second quarter of 2022. The P&C segments experienced growth in gross written premiums and improved underwriting results, while the Life & Group segment and Corporate & Other segment reported lower core income.
Net income was $205 million, or $0.75 per share, compared to $368 million, or $1.35 per share, in the prior year quarter.
Core income was $245 million, or $0.90 per share, versus $341 million, or $1.25 per share, in the prior year quarter.
P&C combined ratio was 91.0%, the lowest in over five years, compared to 94.0% in the prior year quarter.
P&C segments, excluding third party captives, generated gross written premium growth of 17% and net written premium growth of 20%.
CNA
CNA
CNA Revenue by Geographic Location
Revenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
CNA Financial remains optimistic about market conditions and growth opportunities for the remainder of the year.
Positive Outlook
- P&C underwriting gain was up 64%, reflecting higher underlying underwriting income, lower cats, and favorable prior period development.
- The underlying combined ratio of 90.8% is our lowest on record.
- P&C gross written premium growth ex captives of 17% in the quarter.
- Strongest retention in nearly five years and very strong new business growth.
- Earned rate of 8% remains above loss cost trends.
Challenges Ahead
- Core income of $245 million was down 28% this quarter due to a $171 million decline from LPs and common stock.
- Corporate & Other includes a $51 million after-tax charge related to unfavorable prior period development largely associated with legacy mass tort abuse claims.
- Life & Group core income decreased $37 million primarily due to lower net investment income.
- Net investment income decreased $159 million as compared with the prior year quarter.
- Stockholders’ equity of $9.5 billion decreased 26% from year-end 2021, primarily due to net unrealized investment losses