#United States #Chicago #Net Income #CNA Financial #Core Income

CNA Financial Corporation Reports First Quarter 2025 Earnings

CNA Financial Corporation (NYSE: CNA) disclosed its financial performance for the first quarter of 2025, showcasing a net income of $274 million, equating to $1.00 per share. In comparison, the previous year saw a net income of $338 million, which reflected $1.24 per share. The company also reported a core income of $281 million or $1.03 per share, down from $355 million, translating to $1.30 per share in Q1 2024. This data indicates ongoing challenges within the property and casualty (P&C) segments, alongside changes in market conditions and underwriting results.

Financial Highlights

• - Net Investment Income: CNA's net investment income stood at $604 million pre-tax, which marked a decline of $14 million compared to the same period last year, as the company faced losses in limited partnerships and common stocks. However, this was slightly offset by a $9 million increase from fixed income investments.
• - Combined Ratio: The overall combined ratio for the quarter was 98.4%, compared to 94.6% in the prior year. This figure includes various financial impacts from significant catastrophe losses which the company experienced during the quarter.

Property & Casualty Segment Performance

In the Property and Casualty sector, CNA produced a core income of $311 million; however, this was a decrease of $61 million from the same quarter last year. The P&C operations garnered a gross written premium growth of 7% and net written premium growth of 9%, with notable retention rates of 86% and a renewal premium change of 6%.

Catastrophe Losses

The quarter also witnessed considerable catastrophe losses, chiefly attributed to the recent California wildfires, amounting to $97 million before tax. This marked an increase from $88 million in the previous year, highlighting ongoing risks from natural disasters in the liability landscape.

Corporate and Stockholder Returns

The Corporate segment reported a core loss of $36 million, primarily driven by a $17 million charge linked to prior period developments regarding legacy mass tort claims. Despite these challenges, the board declared a quarterly cash dividend of $0.46 per share, payable in June 2025, which signifies a commitment to returning value to its shareholders.

Future Outlook

Douglas M. Worman, President and CEO of CNA Financial, expressed optimism about the company's strong foundation amidst an elevated industry catastrophe quarter, noting their robust performance in securing new business and maintaining considerable underwriting profitability. He remarked on their positioning to capitalize on growth opportunities for the remainder of 2025.

• ---

CNA is recognized as one of the largest commercial property and casualty insurance firms in the U.S., boasting over 125 years of experience in delivering a plethora of insurance products and services tailored for businesses and professionals across multiple regions, including the U.S., Canada, and Europe. For further insights into CNA's financial metrics and strategies, visit their official website.