Sep 30, 2021

CNA Q3 2021 Earnings Report

CNA Financial announced strong third quarter results with increased net income and core income, driven by record underlying combined ratio and premium growth.

Key Takeaways

CNA Financial Corporation reported a strong third quarter in 2021, with net income of $256 million and core income of $237 million. The company achieved a record underlying combined ratio of 91.1% for the third consecutive quarter and experienced double-digit gross written premium growth across its P&C business segments.

Net income increased to $256 million compared to $213 million in the prior year quarter.

Core income rose to $237 million versus $193 million in the prior year quarter.

The P&C combined ratio was 100.0%, with an underlying combined ratio of 91.1%, a record low for the third consecutive quarter.

Gross written premium growth was 10% driven by new business growth of 24%.

Total Revenue
$2.96B
Previous year: $2.82B
+4.9%
EPS
$0.87
Previous year: $0.71
+22.5%
Commercial Combined Ratio
111.6%
Previous year: 111.5%
+0.1%
Specialty Combined Ratio
88.2%
Previous year: 89.5%
-1.5%
International Combined Ratio
95.5%
Previous year: 98.1%
-2.7%
Gross Profit
$2.67B
Previous year: $2.55B
+4.7%
Cash and Equivalents
$625M
Previous year: $442M
+41.4%
Free Cash Flow
$658M
Previous year: $752M
-12.5%
Total Assets
$66.5B
Previous year: $62.8B
+6.0%

CNA

CNA

CNA Revenue by Segment

Forward Guidance

CNA is well positioned to increasingly capitalize on the favorable market conditions they anticipate into 2022.

Positive Outlook

  • Favorable market conditions are anticipated into 2022.
  • Strong written rate increases of 8% in the quarter.
  • Earned rate increase in the quarter was 11%, substantially above long-run loss cost trends.
  • Solid investment income
  • Favorable life and group results

Challenges Ahead

  • No specific negatives were mentioned in the provided text.