Sep 30, 2022

CNA Q3 2022 Earnings Report

Announced third quarter net income and core income.

Key Takeaways

CNA Financial Corporation reported a net income of $128 million, or $0.47 per share, and a core income of $213 million, or $0.78 per share, for the third quarter of 2022. The P&C segments showed strong top-line and bottom-line performance.

Net income was $128 million, including $85 million of net investment losses.

Core income was $213 million, reflecting a decline in investment income from LPs and common stock, partially offset by an increase in investment income from fixed income securities and P&C underwriting income.

P&C combined ratio was 95.8%, compared with 100.0% in the prior year quarter.

P&C segments, excluding third party captives, generated gross written premium growth of 9%.

Total Revenue
$2.96B
Previous year: $2.96B
-0.1%
EPS
$0.78
Previous year: $0.87
-10.3%
Commercial Combined Ratio
101.9%
Previous year: 111.6%
-8.7%
Specialty Combined Ratio
88.7%
Previous year: 88.2%
+0.6%
International Combined Ratio
94.4%
Previous year: 95.5%
-1.2%
Gross Profit
$2.81B
Previous year: $2.67B
+5.0%
Cash and Equivalents
$503M
Previous year: $625M
-19.5%
Free Cash Flow
$721M
Previous year: $658M
+9.6%
Total Assets
$60.2B
Previous year: $66.5B
-9.5%

CNA

CNA

CNA Revenue by Segment

Forward Guidance

CNA Financial remains optimistic about growth opportunities with continued strong pricing and terms and conditions.

Positive Outlook

  • Strong top-line performance in P&C segments
  • Strong bottom-line performance in P&C segments
  • Continued strong pricing
  • Continued strong terms
  • Continued strong conditions

Challenges Ahead

  • Pressure on equity markets
  • Elevated industry catastrophe losses
  • Decline in LPs and common stock
  • Higher underwriting expenses
  • Higher claim severity

Revenue & Expenses

Visualization of income flow from segment revenue to net income