Cna Financial Corporation · NYSE:CNA
Cna Financial — Q4 2022 Earnings Presentation
16 slides from Cna Financial's earnings presentation, Feb 6, 2023
Slide 1: CNA Financial Corporation Fourth Quarter 2022 Results
CNA Financial Corporation Fourth Quarter 2022 Results February 6, 2023
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 $248 million versus $266 million in the prior year quarter; core income of $274 million versus $265 million in the prior year quarter • P&C core income of $342 million versus $353 million, reflects lower investment income from limited partnerships and common s
Slide 4: Full Year Overview
Full Year Overview • Net income of $894 million versus $1,202 million in the prior year; core income of $1,048 million versus $1,106 million in the prior year • P&C core income of $1,240 million versus $1,184 million, reflects record high underwriting income of $559 million as well as higher investm
Slide 5: Financial Performance
Financial Performance Second consecutive year of core income in excess of $1 billion and the highest two year total on record (In millions, except ratios and per share data) Fourth Quarter Year to Date 2022 2021 Change 2022 2021 Change Revenues $3,111 $3,054 2% $11,879 $11,908 —% Core income 274 265
Slide 6: Property & Casualty Operations
Property & Casualty Operations Second consecutive year of double-digit GWP ex captives growth and record underwriting results for the year (In millions, except ratios) Fourth Quarter Year to Date 2022 2021 2022 2021 GWP ex. 3rd party captives $2,704 $2,513 $10,264 $9,303 GWP change (% year over year
Slide 7: Property & Casualty Production Metrics
Property & Casualty Production Metrics Rates continue to moderate slowly while retention remains at high levels Property & Casualty Rate & Retention 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 84% 86% 86% 86% 83% 81% 81% 83% Retention 12% 12% 11% 11% Renewal Premium Change 10% 8% 8% 7% Rate 11% 10% 8% 9% 7% 6
Slide 8: Specialty
Specialty 10th consecutive quarter of all-in combined ratio below 90%; record underlying loss ratio for the quarter and year (In millions, except ratios) Fourth Quarter Year to Date 2022 2021 2022 2021 GWP ex. 3rd party captives $998 $1,016 $3,814 $3,672 GWP change (% year over year) (2)% 4% Net wri
Slide 9: Specialty Production Metrics
Specialty Production Metrics Rate moderation in Management Liability, strong retention and earned rate of 8% Specialty Rate & Retention 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 86% 88% 88% 85% 83% 84% 85% 80% Retention 12% 12% 13% 11% 11% Renewal Premium Change 9% 6% Rate 12% 12% 3% 10% 10% 10% 7% 5% 3% GW
Slide 10: Commercial
Commercial Record underwriting results for the year with 17% premium growth (In millions, except ratios) Fourth Quarter Year to Date 2022 2021 2022 2021 GWP ex. 3rd party captives $1,345 $1,158 $5,056 $4,334 GWP change (% year over year) 16 % 17 % Net written premium $1,096 $973 $4,193 $3,595 NWP ch
Slide 11: Commercial Production Metrics
Commercial Production Metrics Higher rate and renewal premium change with continued strong retention Commercial Rate & Retention 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 87% 87% 86% 86% 83% 83% 83% 80% Retention 12% 12% 11% Renewal Premium Change 8% 8% 9% 7% 7% Rate 10% 8% 6% 6% 5% 5% 4% 5% GWP ex. 3rd par
Slide 12: International
International Record underwriting results for the year with NWP up +13% ex currency fluctuations (In millions, except ratios) Fourth Quarter Year to Date 2022 2021 2022 2021 Gross written premium $361 $339 $1,394 $1,297 GWP change (% year over year)1 6% 7% Net written premium $325 $318 $1,164 $1,101
Slide 13: Life & Group
Life & Group LTC results impacted by unfavorable limited partnership returns (In millions) Fourth Quarter Year to Date 2022 2021 2022 2021 Net earned premiums $117 $122 $473 $491 Net investment income 204 242 804 966 Other revenues (1) 1 (1) — Total operating revenues $320 $365 $1,276 $1,457 Total c
Slide 14: Pretax Net Investment Income
Pretax Net Investment Income Higher yield on fixed income securities a significant earnings tailwind Total CNAF Highlights $M • Net investment income of $503M includes a $88M decline from LPs and common stock (which we include in core income) and a $33M 551 503 increase from fixed income 448 432 422
Slide 15: Investment Portfolio
Investment Portfolio Diversified and liquid investment portfolio Fixed Maturities by Rating % of Portfolio AAA 12% Highlights AA 17% • 88% of total invested assets are in fixed income A 24% securities BBB 42% • High-quality portfolio with an average credit Investment Grade 95% rating of “A” Below In
Slide 16: Financial Strength
Financial Strength Conservative capital and debt profile and ample liquidity support business objectives Dec 31, Dec 31, Capital (In millions, except per share data) 2022 2021 Debt $2,781 $2,779 • Financial strength rating of A+ from S&P was Stockholders' equity 8,825 12,809 affirmed during the four