Cna Financial Corporation · NYSE:CNA
Cna Financial — Q1 2022 Earnings Presentation
18 slides from Cna Financial's earnings presentation, May 2, 2022
Slide 1: CNA Financial Corporation First Quarter 2022 Results
CNA Financial Corporation First Quarter 2022 Results May 2, 2022
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: First Quarter Overview
First Quarter Overview • Net income of $313 million or $1.15 per share; core income was up 20% to $316 million or $1.16 per share. • The P&C combined ratio was 91.9%, the lowest in over five years, compared with 98.1% in the prior year quarter, including 1.0 point of catastrophe loss impact compared
Slide 4: Financial Performance
Financial Performance Despite lower net investment income, core income up 20% driven by 22% increase in P&C core income (In millions, except ratios and per share data) First Quarter 2022 2021 Change Revenues $2,885 $2,866 1% Core income 316 263 20 % Net income 313 312 —% Diluted earnings per common
Slide 5: Property & Casualty Operations
Property & Casualty Operations Combined ratio of 91.9% is lowest in over five years (In millions, except ratios) First Quarter 2022 2021 GWP ex. 3rd party captives $2,454 $2,270 GWP change (% year over year) 8% Net written premium $2,023 $1,937 NWP change (% year over year) 4% Underwriting gain (los
Slide 6: Property & Casualty Production Metrics
Property & Casualty Production Metrics Strong new business growth; higher retention in U.S. P&C Segments with only slight moderation in rate Property & Casualty Rate & Retention 2021 2022 Q1 Q2 Q3 Q4 Q1 Rate Retention 83% 81% 81% 83% 83% 11% 10% 8% 8% 7% GWP ex. 3rd party captives ($M) $2,270 $2,296
Slide 7: Specialty
Specialty Seven consecutive quarters of combined ratio under 90% (In millions, except ratios) First Quarter 2022 2021 GWP ex. 3rd party captives $885 $816 GWP change (% year over year) 8% Net written premium $771 $742 NWP change (% year over year) 4% Underwriting gain $88 $83 Loss ratio excl. catast
Slide 8: Specialty Production Metrics
Specialty Production Metrics Higher retention, with continued strong rate increases and new business growth Specialty Rate & Retention 2021 2022 Q1 Q2 Q3 Q4 Q1 Rate Retention 86% 85% 85% 83% 80% 11% 12% 10% 11% 9% GWP ex. 3rd party captives ($M) $816 $897 $943 $1,016 $885 New Business ($M) $103 $121
Slide 9: Commercial
Commercial Lowest combined ratio since 2008 and strong growth (In millions, except ratios) First Quarter 2022 2021 GWP ex. 3rd party captives $1,206 $1,111 GWP change (% year over year) 9% Net written premium $1,001 $960 NWP change (% year over year) 4% Underwriting gain (loss) $48 ($57) Loss ratio
Slide 10: Commercial Production Metrics
Commercial Production Metrics Retention improved two points with stable rate increases Commercial Rate & Retention 2021 2022 Q1 Q2 Q3 Q4 Q1 Rate Retention 83% 83% 83% 85% 80% 10% 8% 6% 5% 5% GWP ex. 3rd party captives ($M) $1,111 $1,060 $1,005 $1,158 $1,206 New Business ($M) $211 $201 $204 $228 $228
Slide 11: International
International Improvement in both the loss and expense ratio led to higher profitability (In millions, except ratios) First Quarter 2022 2021 Gross written premium $363 $343 GWP change (% year over year) 6% Net written premium $251 $235 NWP change (% year over year) 7% Underwriting gain (loss) $20 $
Slide 12: Life & Group
Life & Group Continued positive core income (In millions) First Quarter 2022 2021 Net earned premiums $120 $120 Net investment income 212 219 Other revenues (1) 1 Total operating revenues $331 $340 Total claims, benefits and expenses 315 308 Income tax benefit 7 4 Core income $23 $36 12
Slide 13: Pretax Net Investment Income
Pretax Net Investment Income Limited partnership and common stock returns impacted by performance of broader equity markets $M $504 $591 $513 $551 $448 $4 $4 Highlights $156 $108 $61 $77 $8 • Limited partnership and common stock returns driven by favorable fourth quarter results from our lagged priv
Slide 14: Investment Portfolio
Investment Portfolio Diversified and liquid investment portfolio Net Highlights Unrealized March 31, 2022 Carrying Value G/(L) • High-quality portfolio with an average credit Asset Class ($M) $ % $ rating of “A” Investment Grade Corp 21,067 45 % 819 • Liquidity supports underlying liability Municipa
Slide 15: Liquidity Profile
Liquidity Profile Ample liquidity at both holding and operating company levels to meet obligations 1 Holding Co. Liquidity & Obligations Operating Company Liquidity $M $B As of March 31, 2022 $2.0 2022 Operating company dividend capacity $1,201 $1.8 $1.7 Less: Last twelve months dividends (1,085) $1
Slide 16: Financial Strength
Financial Strength Conservative capital and debt profile support business objectives Mar 31, Dec 31, Capital (In millions, except per share data) 2022 2021 • Capital remains above target levels required for Debt $2,779 $2,779 all current ratings Stockholders' Equity 10,817 12,809 Total capital $13,5
Slide 17: LDTI - Overview
LDTI - Overview 1 LDTI has no impact to the underlying economics of CNA's business • Effective Q1 2023, GAAP financial statements will be prepared in accordance with new LDTI accounting No LDTI impact to: standard; two years of adjusted financial results will be included in our 2023 filings 2 • CNA’
Slide 18: LDTI - GAAP Equity Transition Impacts
LDTI - GAAP Equity Transition Impacts • Stockholders’ Equity decrease at transition date (January 1, 2021) is $2.2B - $2.5B • In a rising interest rate environment, like we have seen since January 1, 2021, the impact to Stockholders' Equity in our adjusted financial statements for 2021 through Q1 20