Dec 31, 2019

CNA Q4 2019 Earnings Report

CNA Financial announced fourth quarter 2019 results, reporting net income of $273 million and core income of $265 million.

Key Takeaways

CNA Financial Corporation reported a strong fourth quarter in 2019, marked by a P&C combined ratio of 95.6% and an underlying combined ratio of 94.9%. The company's net income for the quarter was $273 million, or $1.00 per share, while core income reached $265 million, or $0.97 per share.

Net income for Q4 2019 was $273 million, or $1.00 per share.

Core income for Q4 2019 was $265 million, or $0.97 per share.

The P&C combined ratio for Q4 2019 was 95.6%, with an underlying combined ratio of 94.9%.

Net written premiums grew by 5% for both the fourth quarter and the full year.

Total Revenue
$2.78B
Previous year: $2.4B
+15.6%
EPS
$0.97
Previous year: $0.74
+31.1%
Commercial Combined Ratio
100.6%
Specialty Combined Ratio
88.2%
International Combined Ratio
100.3%
Gross Profit
$2.78B
Previous year: $2.4B
+15.6%
Cash and Equivalents
$45B
Previous year: $310M
+14416.1%
Free Cash Flow
$154M
Previous year: $347M
-55.6%
Total Assets
$60.6B
Previous year: $57.2B
+6.1%

CNA

CNA

CNA Revenue by Segment

CNA Revenue by Geographic Location

Forward Guidance

CNA is well-positioned going into 2020.

Positive Outlook

  • Fourth quarter premium rates increased to 7%.
  • Gross premiums increased to 8%.
  • Strong underwriting quarter.
  • Underlying combined ratio improved for the third consecutive year to 94.9%.
  • U.S. P&C segments net written premiums grew 6%.

Challenges Ahead

  • Life & Group segment produced core losses of $(4) million.
  • Corporate & Other segments produced core losses of $(68) million.
  • The latter driven by a $48 million after-tax non-economic charge related to asbestos and environmental pollution.
  • Expense ratio increased 0.5 point driven by year-end true-ups in acquisition expenses.
  • Hardy's strategic exit from certain business classes announced in the fourth quarter of 2018.

Revenue & Expenses

Visualization of income flow from segment revenue to net income