Cna Financial Corporation · NYSE:CNA
Cna Financial — Q2 2023 Earnings Presentation
15 slides from Cna Financial's earnings presentation, Jul 31, 2023
Slide 1: CNA Financial Corporation Second Quarter 2023 Results
CNA Financial Corporation Second Quarter 2023 Results July 31, 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: Second Quarter Overview
Second Quarter Overview • Net income up 49% to $283 million versus $190 million in the prior year quarter; core income up 34% to $308 million versus $230 million in the prior year quarter. • P&C core income of $374 million versus $317 million in the prior year quarter, reflects higher investment inc
Slide 4: Financial Performance
Financial Performance Core income up 34% driven by record P&C underlying underwriting income and strong investment results (In millions, except ratios and per share data) Second Quarter Year to Date 2023 2022 1 Change 2023 2022 1 Change Revenues $3,304 $2,926 13 % $6,456 $5,811 11 % Core income 308
Slide 5: Property & Casualty Operations
Property & Casualty Operations Continued excellent growth and strong profitability (In millions, except ratios) Second Quarter Year to Date 2023 2022 2023 2022 GWP ex. 3rd party captives $2,986 $2,676 $5,710 $5,130 GWP change (% year over year) 12 % 11 % Net written premium $2,513 $2,296 $4,760 $4,3
Slide 6: Property & Casualty Production Metrics
Property & Casualty Production Metrics Consistently strong retention and renewal premium change Property & Casualty Rate & Retention 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 84% 86% 86% 86% 86% 86% Retention Renewal Premium Change 10% 8% 8% 7% 7% 7% Rate 7% 6% 5% 4% 5% 5% GWP ex. 3rd party captives ($M) $2,454 $
Slide 7: Specialty
Specialty Strong all-in and underlying combined ratios (In millions, except ratios) Second Quarter Year to Date 2023 2022 2023 2022 GWP ex. 3rd party captives $961 $973 $1,847 $1,858 GWP change (% year over year) (1)% (1)% Net written premium $825 $832 $1,613 $1,603 NWP change (% year over year) (1)
Slide 8: Specialty Production Metrics
Specialty Production Metrics Targeting higher retentions after years of strengthening terms & conditions Specialty Rate & Retention 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 88% 88% 88% 89% 84% 85% Retention 11% 9% Renewal Premium Change 6% 3% 4% Rate 10% 7% —% 5% 3% 2% (1)% GWP ex. 3rd party captives $885 $973 $
Slide 9: Commercial
Commercial Excellent growth in the quarter and continued strong profitability (In millions, except ratios) Second Quarter Year to Date 2023 2022 2023 2022 GWP ex. 3rd party captives $1,604 $1,321 $3,044 $2,527 GWP change (% year over year) 21 % 20 % Net written premium $1,329 $1,134 $2,517 $2,135 NW
Slide 10: Commercial Production Metrics
Commercial Production Metrics Continued accelerating rate increase and high retention Commercial Rate & Retention 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 87% 87% 86% 86% 86% 85% Retention 11% Renewal Premium Change 8% 9% 9% 7% 7% Rate 7% 8% 5% 5% 4% 5% GWP ex. 3rd party captives $1,206 $1,321 $1,184 $1,345 $1,4
Slide 11: International
International Excellent overall profitability with record low underlying combined ratio (In millions, except ratios) Second Quarter Year to Date 2023 2022 2023 2022 Gross written premium $421 $382 $819 $745 GWP change (% year over year)1 10 % 10 % Net written premium $359 $330 $630 $581 NWP change (
Slide 12: Life & Group
Life & Group Results reflect continued de-risking of the portfolio through policy buyouts (In millions) Second Quarter Year to Date 2023 2022 1 0 2023 2022 1 Net earned premiums $113 $118 $228 $238 Net investment income 229 201 443 413 Other revenues — 1 — — Total operating revenues $342 $320 $671 $
Slide 13: Pretax Net Investment Income
Pretax Net Investment Income Strong contributions from limited partnership, common stock and fixed income portfolios Total CNAF Highlights $M • Net investment income of $575M is up 33% year- over-year and 10% from Q1 2023. • Strong limited partnership and common stock 525 575 432 422 503 returns; pr
Slide 14: Investment Portfolio
Investment Portfolio High quality, diversified and liquid investment portfolio Fixed Maturities by Rating % of Portfolio Highlights AAA 13% • 88% of total invested assets are in fixed income AA 17% securities A 25% • High-quality portfolio with an average credit BBB 41% rating of “A” Investment Grad
Slide 15: Financial Strength
Financial Strength Conservative capital and debt profile support business objectives June 30, Dec 31, (In millions, except per share data) 2023 2022 1 Capital Debt $ 3,176 $ 2,781 Stockholders' equity 8,726 8,548 • Financial strength ratings from all four rating Total capital 11,902 11,329 agencies