#United States #Chicago #earnings report #Q2 2025 #CNA Financial

CNA Financial's Second Quarter 2025 Earnings Report

CNA Financial Corporation, listed on the NYSE under the symbol CNA, has announced its financial results for the second quarter of 2025, reporting a net income of $299 million or $1.10 per share. This marks a slight decline from last year's net income of $317 million or $1.17 per share during the same quarter. However, the company saw an increase in core income, which rose to $335 million or $1.23 per share, compared to $326 million or $1.19 per share in the previous year.

Key Financial Highlights

• - Net Income: $299 million for Q2 2025 compared to $317 million in Q2 2024.
• - Core Income: Increased by 3% to $335 million, reflecting strong operational performance.
• - Property & Casualty (P&C) Segment: Core income reached $448 million, a significant increase from $380 million in the same quarter last year. This growth can be attributed to higher net investment income and improved underwriting results.
• - Life & Group Segment: Achieved $1 million in core income, rebounding from a core loss of $1 million in the previous year.
• - Corporate Other Segment: Experienced a greater core loss of $114 million compared to a loss of $53 million in Q2 2024, which included an after-tax charge of $88 million related to unfavorable prior period development associated with legacy mass tort cases.

Investment Income and Premium Growth

CNA reported a 7% increase in net investment income, amounting to $662 million pre-tax. This growth is driven by higher returns from fixed-income securities and investments in limited partnerships and common stocks.

The P&C segments, excluding third-party captives, generated 5% growth in gross written premiums and 6% growth in net written premiums. The average renewal premium change was +5%, with a written rate of +3% and an exposure change of +1%. This indicates a strong demand for insurance products amid stabilizing market conditions.

Loss Ratios and Underwriting Performance

CNA's combined ratio for its P&C business was reported at 94.1%, down from 94.8% in Q2 2024, benefiting from lower catastrophe losses. The underlying combined ratio improved slightly to 91.7%, signaling robust underwriting performance. Notably, the underlying loss ratio stood at 61.5% and the expense ratio improved to 29.8%, marking a positive trend in operational efficiency.

Dividend Declarations and Future Outlook

The CNA Board declared a quarterly cash dividend of $0.46 per share, which is set to be paid on September 4, 2025, to stockholders of record as of August 18, 2025. CEO Douglas M. Worman expressed confidence in the company's direction, citing the balanced growth and strong core underwriting performance as positive indicators for the remainder of the year. He noted that they are well-positioned to leverage various opportunities for profitable growth going forward.

In summary, CNA Financial's Q2 2025 results reflect a mixed yet generally positive performance, highlighting the firm's ability to navigate challenges while focusing on growth and profitability. Investors and analysts will be keen to assess how these trends evolve in the coming quarters as the company continues to adapt to evolving market conditions.