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Jun 30, 2023
CNA Q2 2023 Earnings Report
CNA reported strong Q2 2023 results, marked by a 49% increase in net income and a 34% rise in core income, driven by growth in the P&C segment and net investment income.
Key Takeaways
CNA Financial Corporation announced strong second quarter 2023 results, with net income increasing by 49% to $283 million, or $1.04 per share, and core income rising by 34% to $308 million, or $1.13 per share. The Property & Casualty segments drove the results, with core income of $374 million, reflecting higher investment income and record high pretax underlying underwriting income. Net investment income increased by 33% to $575 million pretax.
Net income increased by 49% to $283 million, with earnings per share of $1.04.
Core income rose by 34% to $308 million, with core income per share of $1.13.
P&C core income reached $374 million, driven by higher investment income and record high pretax underlying underwriting income.
Net investment income increased by 33% to $575 million pretax, driven by an increase from limited partnerships and common stock to $68 million and a $60 million increase from fixed income securities and other investments to $507 million.
Revenue by Geographic Location
Forward Guidance
CNA Financial anticipates continued strong performance throughout the remainder of 2023, driven by double-digit top-line growth, excellent profitability, and improved investment returns.
Positive Outlook
- Strong top-line and bottom-line results in the first half of the year.
- Improved investment returns.
- Very strong production performance with 12% growth in gross written premium ex captives and 9% growth in net written premium.
- Renewal premium change was 7% for P&C overall and 11% in Commercial, which was up 2 points from the first quarter.
- Retention remained consistently high at 86% and new business was up 11%, similar to the first quarter.
Challenges Ahead
- Higher employee related costs.
- Long term care policy buyouts impacted Life & Group segment.
- Higher catastrophe losses.
- Lower favorable net prior year development.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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