Cna Financial Corporation · NYSE:CNA
Cna Financial — Q4 2024 Earnings Presentation
23 slides from Cna Financial's earnings presentation, Feb 10, 2025
Slide 1: Fourth Quarter 2024 Results
CNA Financial Corporation Fourth Quarter 2024 Results February 10, 2025
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: Fourth Quarter Overview
Fourth Quarter Overview • Net income of $21 million, includes $290 million after-tax loss from the previously announced pension settlement transaction, versus $367 million in the prior year quarter; core income of $342 million versus $362 million in the prior year quarter. • P&C core income of $451
Slide 4: Full Year Overview
Full Year Overview • Net income of $959 million, includes $293 million after-tax loss from pension settlement transactions, versus $1,205 million in the prior year; record core income of $1,316 million, versus $1,284 million in the prior year. • P&C core income of $1,549 million versus $1,505 millio
Slide 5: Financial Performance
Financial Performance 5 (In millions, except ratios and per share data) Fourth Quarter Year to Date 2024 2023 Change 2024 2023 Change Revenues $3,689 $3,507 5 % $14,270 $13,299 7 % Core income 342 362 (6) % 1,316 1,284 2 % Net income1 21 367 (94) % 959 1,205 (20) % Diluted earnings per common share:
Slide 6: Property & Casualty Operations
Continued strong premium growth & underlying combined ratio below 92% for 16 consecutive quarters Property & Casualty Operations 6 (In millions, except ratios) Fourth Quarter Year to Date 2024 2023 2024 2023 GWP ex. 3rd party captives $3,230 $2,974 $12,194 $11,279 GWP change (% year over year) 9 % 8
Slide 7: Property & Casualty Production Metrics
Property & Casualty Production Metrics Continued robust new business growth, higher retention and stable overall rate increase 7 Property & Casualty Rate & Retention 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 5% 5% 5% 4% 4% 4% 3% 3% 7% 7% 6% 5% 6% 5% 5% 4% 86% 86% 84% 85% 85% 85% 85% 86% Retention Renewal Pr
Slide 8: Specialty
Highest quarterly growth in 10 quarters and continued strong profitability Specialty 8 (In millions, except ratios) Fourth Quarter Year to Date 2024 2023 2024 2023 GWP ex. 3rd party captives $1,049 $1,004 $3,895 $3,800 GWP change (% year over year) 4 % 3 % Net written premium $934 $891 $3,445 $3,329
Slide 9: Specialty Production Metrics
Specialty Production Metrics Consistently strong retention with improving renewal premium change 9 Specialty Rate & Retention 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2% (1)% 1% —% 2% —% —% 1% 4% —% 2% —% 3% 1% 2% 3% 88% 89% 87% 89% 88% 90% 89% 89% Retention Renewal Premium Change Rate GWP ex. 3rd party ca
Slide 10: Commercial
Commercial 10 (In millions, except ratios) Fourth Quarter Year to Date 2024 2023 2024 2023 GWP ex. 3rd party captives $1,794 $1,610 $6,816 $5,994 GWP change (% year over year) 11 % 14 % Net written premium $1,452 $1,292 $5,469 $4,880 NWP change (% year over year) 12 % 12 % Net earned premium $1,384
Slide 11: Commercial Production Metrics
Commercial Production Metrics 11 Commercial Rate & Retention 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 7% 8% 8% 7% 6% 7% 6% 6% 9% 11% 9% 9% 8% 7% 8% 7% 86% 85% 83% 83% 85% 84% 84% 84% Retention Renewal Premium Change Rate GWP ex. 3rd party captives ($M) $1,440 $1,604 $1,340 $1,610 $1,682 $1,802 $1,538 $1,79
Slide 12: International
1 Excluding currency fluctuations, GWP and NWP grew 6% and 12% in the fourth quarter, and GWP declined 1% and NWP grew 2% for the year. International Consistently profitable results with return to growth in the fourth quarter 12 (In millions, except ratios) Fourth Quarter Year to Date 2024 2023 2024
Slide 13: Life & Group
Full year results reflect higher investment income; underwriting results broadly in line with expectations Life & Group 13 (In millions) Fourth Quarter Year to Date 2024 2023 2024 2023 Net earned premiums $108 $111 $437 $451 Total claims, benefits and expenses 366 349 1,429 1,436 Net investment inco
Slide 14: Pretax Net Investment Income
Pretax Net Investment Income Strong contributions from fixed income, limited partnership and common stock portfolios 611 609 618 626 644 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Total CNAF Limited Partnership & Common Stock Highlights Fixed Income Securities 507 510 520 525 529 4.7% 4.7% 4.8% 4.8% 4.
Slide 15: Investment Portfolio
Investment Portfolio 15 Effective Portfolio Duration Life & Group 9.8 yrs P&C and Corporate 4.3 yrs Total 6.2 yrs Fixed Maturities by Rating % of Portfolio AAA 1 14% AA 16% A 25% BBB 41% Investment Grade 96% Below Investment Grade 4% Total Fixed Maturities 100% 1 AAA includes obligations of the U.S.
Slide 16: Capital, Leverage and Liquidity
Capital • Financial strength ratings from all four rating agencies were affirmed in the past year • Moody’s and AM Best revised outlooks to positive in the fourth quarter; S&P and Fitch maintain stable outlooks • Statutory surplus remains very strong • Adjusting for dividends, book value per share e
Slide 17: Appendix
APPENDIX eNA
Slide 18: Core Income Reconciliation
Results for the Three Months Ended December 31 Results for the Year Ended December 31 2024 2023 2024 2023 Net income $21 $367 $959 $1,205 Less: Net investment (losses) gains (31) 5 (64) (79) Less: Pension settlement transaction losses (290) — (293) — Core income $342 $362 $1,316 $1,284 Core income (
Slide 19: Underwriting Gain Definitions
19 Underwriting gain (loss) is deemed to be a non-GAAP financial measure and is calculated pretax as net earned premiums less total insurance expenses, which includes insurance claims and policyholders' benefits, amortization of deferred acquisition costs and insurance related administrative expense
Slide 20: Three Months Ended December 31, 2023 Reconciliation
20 Results for the Three Months Ended December 31, 2023 (In millions) Specialty Commercial International Property & Casualty Net income $ 179 $ 204 $ 44 $ 427 Net investment losses (gains), after tax 3 5 (1) 7 Core income $ 182 $ 209 $ 43 $ 434 Less: Net investment income 151 175 29 355 Non-insuranc
Slide 21: Twelve Months Ended December 31, 2024 Reconciliation
21 Results for the Twelve Months Ended December 31, 2024 (In millions) Specialty Commercial International Property & Casualty Net income $ 663 $ 658 $ 153 $ 1,474 Net investment losses, after tax 31 44 — 75 Core income $ 694 $ 702 $ 153 $ 1,549 Less: Net investment income 626 733 131 1,490 Non-insur
Slide 22: Twelve Months Ended December 31, 2023 Reconciliation
22 Results for the Twelve Months Ended December 31, 2023 (In millions) Specialty Commercial International Property & Casualty Net income $ 666 $ 594 $ 147 $ 1,407 Net investment losses (gains), after tax 42 58 (2) 98 Core income $ 708 $ 652 $ 145 $ 1,505 Less: Net investment income 558 645 103 1,306
Slide 23: Book Value per Share and Return on Equity
December 31, 2024 December 31, 2023 Book value per share $38.82 $36.52 Less: Per share impact of AOCI (7.34) (9.87) Book value per share excluding AOCI $46.16 $46.39 Book value per share excluding AOCI allows management and investors to analyze the amount of the Company's net worth primarily attribu