Cna Financial Corporation · NYSE:CNA
Cna Financial — Q2 2024 Earnings Presentation
18 slides from Cna Financial's earnings presentation, Jul 29, 2024
Slide 1: CNA Financial Corporation Second Quarter 2024 Results
CNA Financial Corporation Second Quarter 2024 Results July 29, 2024
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: Second Quarter Overview
Second Quarter Overview • Net income up 12% to $317 million versus $283 million in the prior year quarter; core income up 6% to $326 million versus $308 million in the prior year quarter. Core income for the first half of the year up 8% to a record $681 million. • P&C core income of $380 million ver
Slide 4: Financial Performance
Financial Performance 4 Continued strong growth in earnings resulting in record core income for the first half of the year (In millions, except ratios and per share data) Second Quarter Year to Date 2024 2023 Change 2024 2023 Change Revenues $3,519 $3,304 7 % $6,963 $6,456 8 % Core income 326 308 6
Slide 5: Property & Casualty Operations
Excellent underwriting results even with higher catastrophe losses Property & Casualty Operations 5 (In millions, except ratios) Second Quarter Year to Date 2024 2023 2024 2023 GWP ex. 3rd party captives $3,203 $2,986 $6,139 $5,710 GWP change (% year over year) 7 % 8 % Net written premium $2,674 $2,
Slide 6: Property & Casualty Production Metrics
Property & Casualty Production Metrics Stable retention and rate, and record new business 6 Property & Casualty Rate & Retention 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 5% 5% 5% 4% 4% 4% 7% 7% 6% 5% 6% 5% 86% 86% 84% 85% 85% 85% Retention Renewal Premium Change Rate GWP ex. 3rd party captives ($M) $2,724 $2,986
Slide 7: Specialty
Specialty Consistently strong profitability 7 (In millions, except ratios) Second Quarter Year to Date 2024 2023 2024 2023 GWP ex. 3rd party captives $984 $961 $1,864 $1,847 GWP change (% year over year) 2 % 1 % Net written premium $857 $825 $1,649 $1,613 NWP change (% year over year) 4 % 2 % Net ea
Slide 8: Specialty Production Metrics
Specialty Production Metrics Very strong retention and higher rate in medical malpractice 8 Specialty Rate & Retention 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 2% (1)% 1% —% 2% —% 4% —% 2% —% 3% 1% 88% 89% 87% 89% 88% 90% Retention Renewal Premium Change Rate GWP ex. 3rd party captives ($M) $886 $961 $949 $1,004
Slide 9: Commercial
Commercial 9 (In millions, except ratios) Second Quarter Year to Date 2024 2023 2024 2023 GWP ex. 3rd party captives $1,802 $1,604 $3,484 $3,044 GWP change (% year over year) 12 % 14 % Net written premium $1,458 $1,329 $2,796 $2,517 NWP change (% year over year) 10 % 11 % Net earned premium $1,247 $
Slide 10: Commercial Production Metrics
Commercial Production Metrics 10 Commercial Rate & Retention 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 7% 8% 8% 7% 6% 7% 9% 11% 9% 9% 8% 7% 86% 85% 83% 83% 85% 84% Retention Renewal Premium Change Rate GWP ex. 3rd party captives ($M) $1,440 $1,604 $1,340 $1,610 $1,682 $1,802 New Business ($M) $310 $343 $292 $352
Slide 11: International
International Consistently profitable results 11 (In millions, except ratios) Second Quarter Year to Date 2024 2023 2024 2023 Gross written premium $417 $421 $791 $819 GWP change (% year over year)1 (1) % (3) % Net written premium $359 $359 $619 $630 NWP change (% year over year)1 — % (2) % Net earn
Slide 12: Life & Group
Life & Group Core results reflect higher investment results 12 (In millions) Second Quarter Year to Date 2024 2023 2024 2023 Net earned premiums $109 $113 $219 $228 Net investment income 239 229 470 443 Other revenues — — — — Total operating revenues $348 $342 $689 $671 Total claims, benefits and ex
Slide 13: Pretax Net Investment Income
Pretax Net Investment Income Higher yields on fixed income securities continues to be an earnings tailwind 575 553 611 609 618 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Total CNAF Limited Partnership & Common Stock Highlights Fixed Income Securities 490 500 507 510 520 4.6% 4.7% 4.7% 4.7% 4.8% Fixed I
Slide 14: Investment Portfolio Highlights
Highlights • 88% of total invested assets are in fixed income securities • High-quality portfolio with an average credit rating of “A” • Liquidity supports underlying liability characteristics • Net unrealized loss increased modestly from year-end primarily driven by higher risk-free rates Investmen
Slide 15: Capital, Leverage and Liquidity
Capital • Financial strength ratings from all four rating agencies were affirmed in the past year with stable outlooks • Statutory surplus remains very strong • Adjusting for dividends, book value per share ex AOCI increased 5% Leverage • Debt maturity schedule is termed out to effectively manage re
Slide 16: Appendix
APPENDIX eNA
Slide 17: Reconciliation of Net Income to Core Income
Reconciliation of Net Income (Loss) to Core Income (Loss) Results for the Three Months Ended June 30 Results for the Six Months Ended June 30 ($ millions) 2024 2023 2024 2023 Net income $317 $283 $655 $580 Less: Net investment losses (9) (25) (26) (53) Core income $326 $308 $681 $633 Core income (lo
Slide 18: Reconciliation of Book Value per Share and Return on Equity
Reconciliation of Book Value per Share to Book Value per Share Excluding AOCI June 30, 2024 December 31, 2023 Book value per share $36.46 $36.52 Less: Per share impact of AOCI (9.40) (9.87) Book value per share excluding AOCI $45.86 $46.39 Book value per share excluding accumulated other comprehensi