Slide 1: Fourth Quarter 2021 Results
CNA Financial Corporation Fourth Quarter 2021 Results February 7, 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: Fourth Quarter Overview
Fourth Quarter Overview • Net income of $266 million or $0.98 per share; core income of $265 million or $0.97 per share, includes a non-economic charge related to asbestos and environmental pollution of $48 million after-tax • P&C segments produced core income of $353 million, consistent with the pr
Slide 4: Full Year Overview
Full Year Overview • Net income of $1,202 million or $4.41 per share; record core income of $1,106 million or $4.06 per share. • The P&C combined ratio was 96.2%, the lowest in five years, compared with 100.1% in the prior year, including 5.1 points of catastrophe loss impact compared with 7.7 point
Slide 5: Financial Performance
Financial Performance Record core income of $1,106M for the full year; core income of $265M for the quarter (In millions, except ratios and per share data) Fourth Quarter Year to Date 2021 2020 Change 2021 2020 Change Revenues $3,054 $2,931 4% $11,908 $10,808 10 % Core income 265 335 (21)% 1,106 735
Slide 6: Property & Casualty Operations
Property & Casualty Operations Outstanding growth and profitability for the quarter and full year (In millions, except ratios) Fourth Quarter Year to Date 2021 2020 2021 2020 GWP ex. 3rd party captives $2,513 $2,169 $9,303 $8,422 GWP change (% year over year) 16 % 10 % Net written premium $2,166 $1,
Slide 7: Property & Casualty Production Metrics
Property & Casualty Production Metrics Continued strong rate increases; higher new business and retention Property & Casualty Rate & Retention 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Rate Retention 84% 85% 82% 82% 83% 81% 81% 83% 11% 12% 13% 11% 9% 10% 8% 8% GWP ex. 3rd party captives ($M) $2,107 $2,132 $
Slide 8: Specialty
Specialty Six consecutive quarters of double-digit GWP growth and consistent excellent profitability (In millions, except ratios) Fourth Quarter Year to Date 2021 2020 2021 2020 GWP ex. 3rd party captives $1,016 $883 $3,672 $3,296 GWP change (% year over year) 15 % 11 % Net written premium $875 $809
Slide 9: Specialty Production Metrics
Specialty Production Metrics Higher rate increases, retention and new business Specialty Rate & Retention 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Rate Retention 86% 87% 87% 86% 85% 83% 83% 80% 12% 13% 13% 12% 11% 10% 10% 10% GWP ex. 3rd party captives ($M) $741 $811 $861 $883 $816 $897 $943 $1,016 New Bus
Slide 10: Commercial
Commercial Strong growth in the quarter; continued underlying combined ratio improvement driven by expense ratio (In millions, except ratios) Fourth Quarter Year to Date 2021 2020 2021 2020 GWP ex. 3rd party captives $1,158 $975 $4,334 $3,993 GWP change (% year over year) 19 % 9% Net written premium
Slide 11: Commercial Production Metrics
Commercial Production Metrics Increased retention and new business growth Commercial Rate & Retention 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Rate Retention 86% 84% 84% 84% 82% 83% 82% 80% 10% 11% 10% 10% 8% 8% 6% 5% GWP ex. 3rd party captives ($M) $1,059 $1,044 $915 $975 $1,111 $1,060 $1,005 $1,158 New B
Slide 12: International
International Excellent profitability in the quarter and full year, with strong growth (In millions, except ratios) Fourth Quarter Year to Date 2021 2020 2021 2020 Gross written premium $339 $311 $1,297 $1,133 GWP change (% year over year) 9% 14 % Net written premium $318 $281 $1,101 $961 NWP change
Slide 13: Life & Group
Life & Group Strong limited partnership returns drove earnings; favorable morbidity also contributed to full year results (In millions) Fourth Quarter Year to Date 2021 2020 2021 2020 Net earned premiums $122 $124 $491 $504 Net investment income 242 229 966 851 Other revenues 1 — — — Total operating
Slide 14: Financial Strength
Financial Strength Conservative capital and debt profile support business objectives Dec 31, Dec 31, Capital (In millions, except per share data) 2021 2020 • Capital remains above target levels required for Debt $2,779 $2,776 Stockholders' Equity 12,809 12,707 all current ratings Total capital $15,5
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 Dec 31, 2021 2021 Operating company dividend capacity $1,070 $2.0 Less: Last twelve months dividends (880) $1.8 $1.7 $1.6 C
Slide 16: Investment Portfolio
Investment Portfolio Diversified and liquid investment portfolio Net Highlights Unrealized December 31, 2021 Carrying Value G/(L) • High-quality portfolio with an average credit rating of “A” Asset Class ($M) $ % $ • Liquidity supports underlying liability Investment Grade Corp 22,181 44 % 2,620 cha
Slide 17: Pretax Net Investment Income
Pretax Net Investment Income Continued strong limited partnership returns and consistent fixed income earnings $M $555 $504 $591 $513 $551 $3 $4 $4 Highlights $114 $156 $108 $61 $77 • Limited partnership and common stock returns significantly driven by lagged private equity results from the third qu