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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%.
Revenue by Geographic Location
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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