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Dec 31, 2023
CNA Q4 2023 Earnings Report
Announced Q4 2023 net income of $1.35 per share and record core income of $1.33 per share.
Key Takeaways
CNA Financial reported a strong Q4 2023, with net income up 54% to $367 million and core income up 37% to a record $362 million. The Property & Casualty segment drove core income growth, supported by higher investment and underwriting income.
Net income increased by 54% to $367 million compared to the prior year quarter.
Core income reached a record $362 million, up 37% from the prior year quarter.
P&C core income rose to $434 million, driven by higher investment and underwriting income.
The company's combined ratio improved to 92.1%, reflecting lower catastrophe losses.
CNA
CNA
CNA Revenue by Geographic Location
Revenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
CNA Financial is optimistic about its prospects for the coming year, citing broad-based profitability and a track record of double-digit growth.
Positive Outlook
- Favorable terms and conditions from the hard market are expected to persist into 2024.
- Renewal premium change in Commercial was 9% in the quarter, and 11% excluding workers' compensation, exceeding loss cost trends.
- Underlying and all-in underwriting income achieved record levels.
- Pretax net investment income increased by 25%.
- Net and gross written premiums ex. captives each grew by 10%.
Challenges Ahead
- Corporate & Other segment produced a core loss of $76 million, reflecting a $19 million after-tax charge related to office consolidation.
- Specialty segment's underlying combined ratio increased 2.0 points due to higher acquisition and employee-related costs.
- International segment's underlying combined ratio increased 0.8 points due to higher employee-related costs.
- International segment's gross written premiums and net written premiums, excluding currency fluctuations, both declined 3%.
- The fourth quarter underlying combined ratio increased 0.2 points as compared with the prior year quarter.