Cna Financial Corporation · NYSE:CNA
Cna Financial — Investor Presentation (2024)
18 slides from Cna Financial's investor presentation, 2024
Slide 1: CNA Financial: Our Path to Underwriting Excellence
Draft 1.1 CNA Financial: Our Path to Underwriting Excellence Investor Presentation Q4 2023 1
Slide 2: CNA Today
CNA Today One of the largest U.S. commercial lines insurers Core Business Segments: with roots going back to 1897 Commercial Net written premium: $9.4b1 Specialty Gross written premium ex captives: $11.3b1 International Specialized underwriting Meaningful presence in capabilities with industry U.S.,
Slide 3: CNA Story: Improved quality and consistency of earnings
CNA Story: Improved quality and consistency of earnings 2016 CEO transition in November 2016 Established a multi-year strategic goal to pursue Effective portfolio management 2017 Top Quartile underwriting performance through increased specialization Initiated re-underwriting of International 2018 Ex
Slide 4: Confidently Maintaining Top Quartile Performance with an Intense Focus on our Vectors of Success
Confidently Maintaining Top Quartile Performance with an Intense Focus on our Vectors of Success Sustaining a deep underwriting culture Optimizing distribution engagement Attracting, developing & retaining top talent Institutionalizing deep specialization 4
Slide 5: Continuing to Focus on Partnerships, Underwriting, Talent, and Technology & Analytics
Continuing to Focus on Partnerships, Underwriting, Talent, and Technology & Analytics Strategic Partnerships Talent & Learning • Strengthened Branch and Business • Continue to attract experienced Unit alignment to drive growth industry talent in support of our • Enhanced relationships to expand spec
Slide 6: A Strong and Experienced Team
A Strong and Experienced Team CNA Management Dino E. Robusto Doug Worman Scott Lindquist Daniel Franzetti Jane Possell Bob Hopper Chairman & Chief EVP & Global Head EVP & Chief EVP & Chief EVP & Chief EVP & Chief Actuary Executive Officer of Underwriting Financial Officer Administrative Officer Info
Slide 7: Broad Property & Casualty Portfolio
Broad Property & Casualty Portfolio Core P&C Portfolio – $9.4b Net Written Premium in 2023 Commercial (52%) Specialty (35%) International (13%) • P&C products and services to • Professional, financial and • P&C and Specialty products small, middle-market and other specialty products and services lar
Slide 8: Sustaining Improved Performance on Strong Capital Base
Sustaining Improved Performance on Strong Capital Base Summary P&C premium, $m • Achieving strong growth in core P&C business 9% 9% 4% 5% 6% 5% • Continuing improvement in underlying combined ratio, with 7pts 0% 1% $9,446 $7,921 $8,663 improvement since 2016 $6,822 $7,134 $7,566 $6,442 $6,534 • Deli
Slide 9: Meaningfully Improved Underlying Combined Ratios Have Been Sustained in Each of Our P&C Segments
Meaningfully Improved Underlying Combined Ratios Have Been Sustained in Each of Our P&C Segments FY2016 FY2022 FY 2023 102.9% -13.9pts 98.9% -7.3pts 97.9% -7.0pts 95.4% -4.7pts 92.4% 91.2% 90.9% 91.6% 90.7% 90.8% 89.8% 89.0% P&C Specialty Commercial International 9
Slide 10: Specialty
Specialty Continues to generate consistent underwriting results Net Written Premium, $m Combined Ratios1 93.5% $3,306 $3,329 88.7% 88.6% 90.4% $3,225 $3,040 91.3% 89.7% 89.8% 90.7% 31.3% 30.5% 31.0% 32.0% 59.9% 59.1% 58.6% 58.5% 2020 2021 2022 2023 2020 2021 2022 2023 Expense Ratio Underlying Loss R
Slide 11: Commercial
Commercial Growing with increasingly consistent underwriting profitability following several years of targeted portfolio management actions Net Written Premium, $m Combined Ratios1 105.1% 103.1% 97.3% 96.0% $4,880 $4,193 93.9% 92.6% 92.4% 91.6% $3,565 $3,595 33.0% 31.1% 30.4% 29.6% 60.4% 61.0% 61.5%
Slide 12: International
International Portfolio management actions have meaningfully improved underwriting profitability and reduced volatility Net Written Premium, $m Combined Ratios1 102.4% 94.8% 91.8% 92.6% $1,237 $1,164 95.6% 92.1% $1,101 90.8% 89.0% $961 35.5% 33.1% 32.3% 31.2% 60.1% 59.0% 58.5% 57.8% 2020 2021 2022 2
Slide 13: LTC Progress Focused on Active Management
LTC Progress Focused on Active Management Proactive approach to managing block across all dimensions of the business Significantly improved runoff Long Term Care business compared to 2015 • Individual LTC block closed in 2004; Group LTC block closed to new accounts in 2004 and closed to new enrollee
Slide 14: Long Term Care Block Characteristics
Long Term Care Block Characteristics Total LTC policies have declined by over 40% since 2015 Block Characteristics (as of Q3 2023) Commentary ILTC GLTC • De-risking of the more mature ILTC block with richer policy Average Age 81 years old 69 years old Average Max Daily Benefit $277 $211 benefits is
Slide 15: High-quality, Well Diversified and Liquid Investments
High-quality, Well Diversified and Liquid Investments Municipals • $46.6 billion in carrying value 16% • 88% of total invested assets are in fixed income securities Other ABS 1 • High-quality portfolio with an average “A” credit rating Corporate 7% 52% 2 • Higher yields on fixed income securities co
Slide 16: Maintaining a Robust Balance Sheet and Consistent Value Creation for Shareholders
Maintaining a Robust Balance Sheet and Consistent Value Creation for Shareholders Robust Financial Strength & Debt Ratings Capital Management Philosophy Financial CNAF Senior • Hold capital to withstand material stresses Rating Agency Strength Debt Outlook • Growth opportunities (organic and inorgan
Slide 17: CNA Highlights
CNA Highlights ✓ Confidently maintaining Top Quartile performance with an intense focus on our Vectors of Success ✓ Meaningfully improved underlying combined ratios have been sustained in each of our P&C segments ✓ P&C operations’ earnings power continues to grow, with record high annual underwritin
Slide 18: 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