Cna Financial Corporation · NYSE:CNA
Cna Financial — Q4 2023 Earnings Presentation
16 slides from Cna Financial's earnings presentation, Feb 5, 2024
Slide 1: Fourth Quarter 2023 Results
CNA Financial Corporation Fourth Quarter 2023 Results February 5, 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: Fourth Quarter Overview
Fourth Quarter Overview • Net income up 54% to $367 million versus $239 million in the prior year quarter; core income up 37% to a record $362 million versus $265 million in the prior year quarter. • P&C core income of $434 million versus $342 million, reflects higher investment income and higher un
Slide 4: Full Year Overview
Full Year Overview • Net income up 77% to a record $1,205 million versus $682 million in the prior year; core income up 54% to a record $1,284 million versus $836 million in the prior year. • P&C core income of $1,505 million versus $1,240 million, reflects higher investment income and record high u
Slide 5: Financial Performance
Financial Performance Record core income for the quarter and full year, and record net income for the full year (In millions, except ratios and per share data) Fourth Quarter Year to Date 2023 2022 2 Change 2023 2022 2 Change Revenues $3,507 $3,111 13 % $13,299 $11,879 12 % Core income 1 362 265 37
Slide 6: Property & Casualty Operations
Property & Casualty Operations Record underwriting income for the full year and third consecutive year of double-digit GWP growth (In millions, except ratios) Fourth Quarter Year to Date 2023 2022 2023 2022 GWP ex. 3rd party captives $2,974 $2,704 $11,279 $10,264 GWP change (% year over year) 10 % 1
Slide 7: Property & Casualty Production Metrics
Property & Casualty Production Metrics Strong new business growth while continuing to manage rate/retention dynamic effectively Property & Casualty Rate & Retention 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 84% 86% 86% 86% 86% 86% 84% 85% Retention Renewal Premium Change 10% 8% 8% 7% 7% 7% 6% 5% Rate 7% 6%
Slide 8: Specialty
Specialty Continued excellent all-in and underlying combined ratio (In millions, except ratios) Fourth Quarter Year to Date 2023 2022 2023 2022 GWP ex. 3rd party captives $1,004 $998 $3,800 $3,814 GWP change (% year over year) 1% —% Net written premium $891 $863 $3,329 $3,306 NWP change (% year over
Slide 9: Specialty Production Metrics
Specialty Production Metrics Targeting profitable new business and higher retentions after years of strengthening rate, terms & conditions Specialty Rate & Retention 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 88% 88% 88% 89% 87% 89% 84% 85% Retention 11% 9% Renewal Premium Change 6% 3% 4% 10% 2% Rate 7% —% —
Slide 10: Commercial
Commercial Record underwriting income for the quarter and full year with excellent growth (In millions, except ratios) Fourth Quarter Year to Date 2023 2022 2023 2022 GWP ex. 3rd party captives $1,610 $1,345 $5,994 $5,056 GWP change (% year over year) 20 % 19 % Net written premium $1,292 $1,096 $4,8
Slide 11: Commercial Production Metrics
Commercial Production Metrics New business growth of 38%, and continued strong rate and renewal premium change Commercial Rate & Retention 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 87% 87% 86% 86% 86% 85% 83% 83% Retention 11% Renewal Premium Change 9% 9% 9% 9% 8% 7% 7% Rate 7% 8% 8% 7% 5% 5% 4% 5% GWP ex.
Slide 12: International
International Consistently profitable results (In millions, except ratios) Fourth Quarter Year to Date 2023 2022 2023 2022 Gross written premium $360 $361 $1,485 $1,394 GWP change (% year over year)1 —% 7% Net written premium $325 $325 $1,237 $1,164 NWP change (% year over year)1 —% 6% Net earned pr
Slide 13: Life & Group
Life & Group Core income for the quarter reflects strong investment results (In millions) Fourth Quarter Year to Date 2023 2022 1 2023 2022 1 Net earned premiums $111 $117 $451 $473 Net investment income 237 204 896 804 Other revenues (1) (1) (1) (1) Total operating revenues $347 $320 $1,346 $1,276
Slide 14: Pretax Net Investment Income
Pretax Net Investment Income Strong contributions from fixed income, limited partnership and common stock portfolios Total CNAF Highlights $M • Net investment income of $611M is up 21% year- over-year • The effective income yield on fixed income 575 611 increased to 4.7% from 4.5% year-over-year, 50
Slide 15: Investment Portfolio
Investment Portfolio High quality, diversified and liquid investment portfolio Fixed Maturities by Rating % of Portfolio Highlights 1 AAA 14% • 88% of total invested assets are in fixed income AA 16% securities A 24% • High-quality portfolio with an average credit BBB 41% rating of “A” Investment Gr
Slide 16: Financial Strength
Financial Strength Conservative capital and debt profile support business objectives Dec 31, Dec 31, Capital (In millions, except per share data) 2023 2022 1 Debt $3,031 $2,781 • Financial strength ratings from all four rating Stockholders' equity 9,893 8,548 agencies were affirmed in the past year