Cna Financial Corporation · NYSE:CNA
Cna Financial — Q2 2020 Earnings Presentation
15 slides from Cna Financial's earnings presentation, Aug 3, 2020
Slide 1: CNA Financial Corporation Second Quarter 2020 Results
CNA Financial Corporation Second Quarter 2020 Results August 3, 2020
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 Highlights
Second Quarter Highlights • P&C rate increased by 3 points from Q1 to +11% • P&C gross written premium (ex. 3rd party captives) growth of 8% U.S., 7% overall • Combined ratio of 112.3% • Catastrophe losses of $301 million pretax include $182 million for COVID-19, $61 million for Civil Unrest • Under
Slide 4: Financial Performance
Financial Performance Core income and Net income in the second quarter reflect favorable equity market rebound, results also impacted by catastrophe losses (In millions, except ratios and per share data) Second Quarter Year to Date 2020 2019 Change 2020 2019 Change Revenues $2,766 $2,610 6% $5,057 $
Slide 5: Property & Casualty Operations
Property & Casualty Operations Results reflect continued strong underlying performance and significant impact from catastrophe losses (In millions, except ratios) Second Quarter Year to Date 2020 2019 2020 2019 GWP ex. 3rd party captives $2,132 $2,000 $4,239 $3,987 GWP change (% year over year) 7% 6
Slide 6: Specialty
Specialty Improved premium growth along with strong underlying performance (In millions, except ratios) Second Quarter Year to Date 2020 2019 2020 2019 GWP ex. 3rd party captives $811 $755 $1,552 $1,485 GWP change (% year over year) 7% 5% Net written premium $742 $713 $1,436 $1,411 NWP change (% yea
Slide 7: Specialty Production Metrics
Specialty Production Metrics Accelerating rate momentum with stable retention Specialty Rate & Retention 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Rate Retention 89% 89% 87% 85% 84% 85% 12% 8% 9% 4% 6% 3% GWP ex. 3rd party captives ($M) $730 $755 $778 $752 $741 $811 New Business ($M) $86 $97 $91 $93 $74 $96 Healt
Slide 8: Commercial
Commercial Strong growth and underlying performance, catastrophes primarily driven by civil unrest and severe weather (In millions, except ratios) Second Quarter Year to Date 2020 2019 2020 2019 GWP ex. 3rd party captives $1,044 $958 $2,103 $1,891 GWP change (% year over year) 9% 11 % Net written pr
Slide 9: Commercial Production Metrics
Commercial Production Metrics Strong rate momentum and new business growth Commercial Rate & Retention 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Rate Retention 85% 87% 86% 87% 85% 83% 8% 9% 4% 5% 2% 3% GWP ex. 3rd party captives ($M) $933 $958 $852 $867 $1,059 $1,044 New Business ($M) $163 $186 $173 $161 $198 $20
Slide 10: International
International Negative growth reflects continued re-underwriting efforts, catastrophes predominantly due to COVID-19 (In millions, except ratios) Second Quarter Year to Date 2020 2019 2020 2019 Gross written premium $277 $287 $584 $611 GWP change (% year over year) (3)% (4)% Net written premium $239
Slide 11: Life & Group
Life & Group 2020 results moderately favorable relative to expectations (In millions) Second Quarter Year to Date 2020 2019 2020 2019 Net earned premiums $126 $130 $253 $260 Net investment income 206 205 414 409 Other revenues — — — 1 Total operating revenues $332 $335 $667 $670 Total claims, benefi
Slide 12: Financial Strength
Financial Strength Balance Sheet remains strong June 30, Dec 31, Capital (In millions, except per share data) 2020 2019 • Continue to maintain strong capital structure Debt $2,680 $2,679 • Capital remains above target levels required Stockholders' equity 11,645 12,215 for all current ratings Total c
Slide 13: Liquidity Profile
Liquidity Profile Strong operating cash flow and liquidity 1 Operating Company Liquidity Holding Co. Liquidity & Obligations $b $1.2 $1.3 $M $1.0 As of June 30, 2020 $1.0 $1.0 2020 Operating company dividend capacity $1,078 0.9 Less: Last twelve months dividends (1,075) 0.7 Current operating company
Slide 14: Investment Portfolio
Investment Portfolio Well-diversified and liquid investment portfolio Net Highlights Unrealized June 30, 2020 Carrying Value G/(L) • High-quality portfolio with an average credit rating of “A” Asset Class ($M) $ % $ • Liquidity supports underlying liability Investment Grade Corp 20,936 45 % 2,576 ch
Slide 15: Pre-Tax Net Investment Income
Pre-Tax Net Investment Income Limited partnership and common stock income rebounds after Q1 market disruption; steady fixed income contributions $M $515 $487 $545 $329 $534 $12 $7 $7 $10 Highlights $43 $69 $5 $84 $18 • Q2 2020 limited partnership and common equity returns driven by financial market