Cna Financial Corporation · NYSE:CNA
Cna Financial — Q4 2020 Earnings Presentation
15 slides from Cna Financial's earnings presentation, Feb 8, 2021
Slide 1: CNA Financial Corporation Fourth Quarter 2020 Results
CNA Financial Corporation Fourth Quarter 2020 Results February 8, 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: Fourth Quarter and Full Year Overview
Fourth Quarter and Full Year Overview Fourth Quarter • Net income of $387 million or $1.42 per share; record core income of $335 million or $1.23 per share. • Net and core income includes a non-economic A&EP charge of $39 million, $0.14 per share. • The P&C combined ratio was 93.5% compared with 95.
Slide 4: Financial Performance
Financial Performance Record quarterly Core income of $335M; Core ROE of 11.4% (In millions, except ratios and per share data) Fourth Quarter Year to Date 2020 2019 Change 2020 2019 Change Revenues $2,931 $2,777 6% $10,808 $10,767 —% Core income 335 265 26 % 735 979 (25)% Net income 387 273 42 % 690
Slide 5: Property & Casualty Operations
Property & Casualty Operations Strong growth and profitability in the quarter (In millions, except ratios) Fourth Quarter Year to Date 2020 2019 2020 2019 GWP ex. 3rd party captives $2,169 $1,892 $8,422 $7,735 GWP change (% year over year) 15 % 9% Net written premium $1,952 $1,746 $7,566 $7,134 NWP
Slide 6: Specialty
Specialty Continued strong profitability and significant premium growth (In millions, except ratios) Fourth Quarter Year to Date 2020 2019 2020 2019 GWP ex. 3rd party captives $883 $752 $3,296 $3,015 GWP change (% year over year) 17 % 9% Net written premium $809 $705 $3,040 $2,848 NWP change (% year
Slide 7: Specialty Production Metrics
Specialty Production Metrics New business growth of +23% and effective rate/retention execution Specialty Rate & Retention 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Rate Retention 89% 89% 87% 86% 87% 86% 85% 84% 11% 13% 13% 8% 9% 4% 6% 3% GWP ex. 3rd party captives ($M) $730 $755 $778 $752 $741 $811 $861 $8
Slide 8: Commercial
Commercial Improved profitability in the quarter and double-digit GWP growth in the quarter and full year (In millions, except ratios) Fourth Quarter Year to Date 2020 2019 2020 2019 GWP ex. 3rd party captives $975 $867 $3,993 $3,609 GWP change (% year over year) 13 % 11 % Net written premium $862 $
Slide 9: Commercial Production Metrics
Commercial Production Metrics Third consecutive quarter of double-digit rate increases and new business growth of +22% Commercial Rate & Retention 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Rate Retention 86% 87% 86% 87% 86% 85% 84% 82% 10% 11% 10% 8% 3% 4% 5% 2% GWP ex. 3rd party captives ($M) $933 $958 $85
Slide 10: International
International Strong growth in International fueled by 18 points of rate (In millions, except ratios) Fourth Quarter Year to Date 2020 2019 2020 2019 Gross written premium $311 $274 $1,133 $1,111 GWP change (% year over year) 14 % 2% Net written premium $281 $262 $961 $971 NWP change (% year over ye
Slide 11: Life & Group
Life & Group Positive Core income in the quarter reflects continuation of favorable morbidity trends (In millions) Fourth Quarter Year to Date 2020 2019 2020 2019 Net earned premiums $124 $130 $504 $520 Net investment income 229 204 851 820 Other revenues — — — — Total operating revenues $353 $334 $
Slide 12: Financial Strength
Financial Strength Strong capital position Dec 31, Dec 31, Capital (In millions, except per share data) 2020 2019 • Capital remains above target levels required for Debt $2,776 $2,679 Stockholders' Equity 12,707 12,215 all current ratings Total capital $15,483 $14,894 • Adjusting for dividends, book
Slide 13: Liquidity Profile
Liquidity Profile Significant increase in operating cash flows and strong liquidity position 1 Holding Co. Liquidity & Obligations Operating Company Liquidity $M $b $1.8 As of Dec 31, 2020 $1.3 $1.4 2020 Operating company dividend capacity $1,078 Less: Last twelve months dividends (975) $1.0 $1.0 1.
Slide 14: Investment Portfolio
Investment Portfolio Diversified and liquid investment portfolio Net Highlights Unrealized December 31, 2020 Carrying Value G/(L) • High-quality portfolio with an average credit rating of “A” Asset Class ($M) $ % $ • Liquidity supports underlying liability Investment Grade Corp 22,093 44 % 3,418 cha
Slide 15: Pretax Net Investment Income
Pretax Net Investment Income Solid net investment income results driven by limited partnership and common stock returns $M $545 $329 $534 $517 $555 $3 $12 $10 $3 Highlights $69 $5 $84 $114 $71 • Q4 2020 limited partnership and common equity returns driven by continued equity market appreciation • Th