Cna Financial Corporation · NYSE:CNA
Cna Financial — Q2 2022 Earnings Presentation
16 slides from Cna Financial's earnings presentation, Aug 1, 2022
Slide 1: CNA Financial Corporation Second Quarter 2022 Results
CNA Financial Corporation Second Quarter 2022 Results August 1, 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: Second Quarter Overview
Second Quarter Overview • Net income of $205 million or $0.75 per share, which includes $40 million of net investment losses, versus net income of $368 million, which includes $27 million of net investment gains in the prior year quarter; Core income of $245 million or $0.90 per share, versus $341 m
Slide 4: Financial Performance
Financial Performance Core income reflects improved underwriting results, higher fixed income and lower LP and common stock returns (In millions, except ratios and per share data) Second Quarter Year to Date 2022 2021 Change 2022 2021 Change Revenues $2,926 $3,029 (3)% $5,811 $5,895 (1)% Core income
Slide 5: Property & Casualty Operations
Property & Casualty Operations Underwriting gain up 64% and achieved excellent growth (In millions, except ratios) Second Quarter Year to Date 2022 2021 2022 2021 GWP ex. 3rd party captives $2,676 $2,296 $5,130 $4,566 GWP change (% year over year) 17 % 12 % Net written premium $2,296 $1,909 $4,319 $
Slide 6: Property & Casualty Production Metrics
Property & Casualty Production Metrics Improved retention with only slight moderation in rates and new business growth of 27% Property & Casualty Rate & Retention 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Rate Retention 83% 83% 85% 83% 81% 81% 11% 10% 9% 8% 7% 6% GWP ex. 3rd party captives ($M) $2,270 $2,296 $2,2
Slide 7: Specialty
Specialty Record low underlying loss ratio of 58.6% and 8 consecutive quarters of stable all-in combined ratios below 90% (In millions, except ratios) Second Quarter Year to Date 2022 2021 2022 2021 GWP ex. 3rd party captives $973 $897 $1,858 $1,713 GWP change (% year over year) 8% 8% Net written pr
Slide 8: Specialty Production Metrics
Specialty Production Metrics Continued solid retention and rate achievement still above loss cost trend Specialty Rate & Retention 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Rate Retention 86% 85% 85% 85% 83% 80% 11% 12% 10% 12% 10% 7% GWP ex. 3rd party captives ($M) $816 $897 $943 $1,016 $885 $973 New Business ($
Slide 9: Commercial
Commercial Outstanding top-line GWP growth of 25% and record low underlying combined ratio of 92.0% (In millions, except ratios) Second Quarter Year to Date 2022 2021 2022 2021 GWP ex. 3rd party captives $1,321 $1,060 $2,527 $2,171 GWP change (% year over year) 25 % 16 % Net written premium $1,134 $
Slide 10: Commercial Production Metrics
Commercial Production Metrics Maintained strong retention with stable rate increases and excellent new business growth Commercial Rate & Retention 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Rate Retention 83% 83% 83% 86% 86% 80% 10% 8% 6% 6% 5% 5% GWP ex. 3rd party captives ($M) $1,111 $1,060 $1,005 $1,158 $1,206
Slide 11: International
International Continued improvement in underlying and all-in combined ratios; strong growth despite currency impact1 (In millions, except ratios) Second Quarter Year to Date 2022 2021 2022 2021 Gross written premium $382 $339 $745 $682 GWP change (% year over year)1 13 % 9% Net written premium $330
Slide 12: Life & Group
Life & Group Positive core income despite reduced net investment income driven by limited partnership returns (In millions) Second Quarter Year to Date 2022 2021 2022 2021 Net earned premiums $118 $126 $238 $246 Net investment income 201 265 413 484 Other revenues 1 (1) — — Total operating revenues
Slide 13: Pretax Net Investment Income
Pretax Net Investment Income Higher income from fixed income securities more than offset by lower returns from LPs and common stock $M $591 $513 $551 $448 $432 $4 Highlights $156 $108 $77 $8 • Net investment income of $432M includes a $16M increase from fixed income, offset by a $171M decline from L
Slide 14: Investment Portfolio
Investment Portfolio Diversified and liquid investment portfolio Fixed Maturities by Rating % of Portfolio AAA 13% Highlights AA 18% • 90% of total invested assets are in fixed income A 23% securities BBB 41% • High-quality portfolio with an average credit Investment Grade 95% rating of “A” Below In
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 June 30, 2022 2022 Operating company dividend capacity $1,201 $2.0 Less: Last twelve months dividends (1,090) $1.7 $1.6 $1.
Slide 16: Financial Strength
Financial Strength Conservative capital and debt profile support business objectives Jun 30, Dec 31, Capital (In millions, except per share data) 2022 2021 • Capital remains above target levels required for Debt $2,780 $2,779 all current ratings Stockholders' Equity 9,512 12,809 Total capital $12,29