Cna Financial Corporation · NYSE:CNA
Cna Financial — Q3 2021 Earnings Presentation
18 slides from Cna Financial's earnings presentation, Nov 1, 2021
Slide 1: CNA Financial Corporation Third Quarter 2021 Results
CNA Financial Corporation Third Quarter 2021 Results November 1, 2021
Slide 2: Notices and Disclaimers
Notices and Disclaimers Forward Looking Statements The statements made in the course of this presentation and/or contained in the presentation materials may include statements that relate to anticipated future events (forward-looking statements) rather than actual present conditions or historical ev
Slide 3: Third Quarter Overview
Third Quarter Overview • Net income of $256 million or $0.94 per share; core income of $237 million or $0.87 per share. • The P&C combined ratio was 100.0% compared with 100.9% in the prior year quarter, including 9.2 points of catastrophe loss compared with 8.7 points in the prior year quarter. • N
Slide 4: Financial Performance
Financial Performance Core income increased 23% despite elevated catastrophes in the quarter (In millions, except ratios and per share data) Third Quarter Year to Date 2021 2020 Change 2021 2020 Change Revenues $2,959 $2,820 5% $8,854 $7,877 12 % Core income 237 193 23 % 841 400 110 % Net income 256
Slide 5: Property & Casualty Operations
Property & Casualty Operations Double-digit GWP growth and continued underlying combined ratio improvement in the third quarter (In millions, except ratios) Third Quarter Year to Date 2021 2020 2021 2020 GWP ex. 3rd party captives $2,224 $2,014 $6,790 $6,253 GWP change (% year over year) 10 % 9% Net
Slide 6: Property & Casualty Production Metrics
Property & Casualty Production Metrics Robust year-over-year new business growth with continued strong rate increases and stable retention Property & Casualty Rate & Retention 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Rate Retention 82% 83% 82% 84% 82% 81% 81% 11% 12% 12% 11% 10% 9% 8% GWP ex. 3rd party captiv
Slide 7: Specialty
Specialty Fifth straight quarter of double-digit GWP growth and sustained excellent underlying combined ratio (In millions, except ratios) Third Quarter Year to Date 2021 2020 2021 2020 GWP ex. 3rd party captives $943 $861 $2,656 $2,413 GWP change (% year over year) 10 % 10 % Net written premium $82
Slide 8: Specialty Production Metrics
Specialty Production Metrics Strong new business overall; lower retention due to underwriting actions in Medical Malpractice Specialty Rate & Retention 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Rate Retention 86% 87% 87% 86% 85% 83% 80% 12% 13% 13% 11% 10% 10% 9% GWP ex. 3rd party captives ($M) $741 $811 $861
Slide 9: Commercial
Commercial Lowest underlying combined ratio on record and double-digit GWP growth (In millions, except ratios) Third Quarter Year to Date 2021 2020 2021 2020 GWP ex. 3rd party captives $1,005 $915 $3,176 $3,018 GWP change (% year over year) 10 % 5% Net written premium $831 $804 $2,622 $2,703 NWP cha
Slide 10: Commercial Production Metrics
Commercial Production Metrics Strong new business growth and a three point improvement in retention Commercial Rate & Retention 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Rate Retention 86% 84% 84% 82% 83% 83% 80% 10% 11% 10% 10% 8% 8% 6% GWP ex. 3rd party captives ($M) $1,059 $1,044 $915 $975 $1,111 $1,060 $1,
Slide 11: International
International Excellent results across the board with record underlying combined ratio (In millions, except ratios) Third Quarter Year to Date 2021 2020 2021 2020 Gross written premium $276 $238 $958 $822 GWP change (% year over year) 16 % 17 % Net written premium $256 $222 $783 $680 NWP change (% y
Slide 12: LTC Progress Focused on Active Management
LTC Progress Focused on Active Management Proactive approach to managing block across all dimensions of the business; well positioned to advance de-risking Commentary Block Characteristics • Active policy counts are down 35% since 2015 • Decline in reserving claim counts from 2019 driven by lower ne
Slide 13: 2021 LTC Active Life Reserve Review
2021 LTC Active Life Reserve Review Margin build of $72M on active life reserves 1 1 Including cost of care inflation assumptions 13
Slide 14: Life & Group
Life & Group 2021 results include favorable impact of annual reserve reviews (In millions) Third Quarter Year to Date 2021 2020 2021 2020 Net earned premiums $123 $127 $369 $380 Net investment income 240 208 724 622 Other revenues (1) — (1) — Total operating revenues $362 $335 $1,092 $1,002 Total cl
Slide 15: Financial Strength
Financial Strength Conservative capital and debt profile support business objectives Sep 30, Dec 31, (In millions, except per share data) 2021 2020 Debt $2,778 $2,776 Stockholders' Equity 12,664 12,707 Capital Total capital $15,442 $15,483 • Capital remains above target levels required for all curre
Slide 16: Liquidity Profile
Liquidity Profile Ample liquidity at both holding and operating company levels to meet corporate obligations 1 Holding Co. Liquidity & Obligations Operating Company Liquidity $M $b As of Sep 30, 2021 2021 operating company dividend capacity $1,070 $2.0 $1.8 $1.8 Less: Last twelve months dividends (7
Slide 17: Investment Portfolio
Investment Portfolio Diversified and liquid investment portfolio Net Highlights Unrealized September 30, 2021 Carrying Value G/(L) • High-quality portfolio with an average credit rating of “A” Asset Class ($M) $ % $ • Liquidity supports underlying liability Investment Grade Corp 22,323 44 % 2,821 ch
Slide 18: Pretax Net Investment Income
Pretax Net Investment Income Consistent fixed income earnings and continued strong limited partnership returns $M $517 $555 $504 $591 $513 $3 $3 $4 Highlights $71 $114 $156 $61 $77 • The fixed income portfolio continues to provide consistent earnings; headwinds from lower rate environment are largel