Cna Financial Corporation · NYSE:CNA
Cna Financial — Q1 2020 Earnings Presentation
15 slides from Cna Financial's earnings presentation, May 4, 2020
Slide 1: CNA Financial Corporation First Quarter 2020 Results
CNA Financial Corporation First Quarter 2020 Results May 4, 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: First Quarter Highlights
First Quarter Highlights • Core income of $108 million or $0.40 per share • Underlying loss ratio of 60.4%; expense ratio of 33.1% • Combined ratio of 97.5%; underlying combined ratio of 93.9% • COVID-19 related charges of $15 million pretax included in underwriting gain • U.S. P&C gross written pre
Slide 4: Financial Performance
Financial Performance Core income of $108M in the first quarter reflects improved underwriting income, more than offset by lower Net investment income (In millions, except ratios and per share data) First Quarter 2020 2019 Change Revenues $2,291 $2,695 (15)% Core income 108 318 (66)% Net (loss) inco
Slide 5: Property & Casualty Operations
Property & Casualty Operations Continued premium growth and improved underlying combined ratio (In millions, except ratios) First Quarter 2020 2019 GWP ex. 3rd party captives $2,107 $1,987 GWP change (% year over year) 6% Net written premium $1,863 $1,806 NWP change (% year over year) 3% Underwritin
Slide 6: Specialty
Specialty Improved underlying combined ratio driven by both loss and expense ratio (In millions, except ratios) First Quarter 2020 2019 GWP ex. 3rd party captives $741 $730 GWP change (% year over year) 2% Net written premium $694 $698 NWP change (% year over year) (1)% Underwriting gain (loss) $59
Slide 7: Specialty Production Metrics
Specialty Production Metrics Strong rate momentum continues; lower retention driven by ongoing re-underwriting efforts in Healthcare Specialty Rate & Retention 2019 2020 Q1 Q2 Q3 Q4 Q1 Rate Retention 89% 89% 87% 85% 84% 8% 9% 4% 6% 3% GWP ex. 3rd party captives ($M) $730 $755 $778 $752 $741 New Busi
Slide 8: Commercial
Commercial Double-digit premium growth and improved underlying loss and expense ratios (In millions, except ratios) First Quarter 2020 2019 GWP ex. 3rd party captives $1,059 $932 GWP change (% year over year) 14 % Net written premium $950 $849 NWP change (% year over year) 12 % Underwriting gain (lo
Slide 9: Commercial Production Metrics
Commercial Production Metrics Strong rate momentum and new business growth Commercial Rate & Retention 2019 2020 Q1 Q2 Q3 Q4 Q1 Rate Retention 85% 87% 86% 87% 85% 8% 3% 4% 5% 2% GWP ex. 3rd party captives ($M) $932 $958 $852 $867 $1,059 New Business ($M) $163 $186 $173 $161 $198 Middle Market Rate 1
Slide 10: International
International Net written premium decline impacted by timing of reinsurance treaty renewal (In millions, except ratios) First Quarter 2020 2019 Gross written premium $307 $324 GWP change (% year over year) (5)% Net written premium $219 $259 NWP change (% year over year) (15)% Underwriting gain (loss
Slide 11: Life & Group
Life & Group Q1 2020 results in line with breakeven expectations (In millions) First Quarter 2020 2019 Net earned premiums $127 $130 Net investment income 208 204 Other revenues — 1 Total operating revenues $335 $335 Total claims, benefits and expenses 345 338 Income tax benefit 14 13 Core income $4
Slide 12: Financial Strength
Financial Strength Balance Sheet remains strong Mar 31, 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 10,362 12,215 for all current ratings Total ca
Slide 13: Liquidity Profile
Liquidity Profile Strong operating cash flow and liquidity 1 Operating Company Liquidity Holding Co. Liquidity & Obligations $b $M $1.2 As of Mar 31, 2020 $1.0 $1.0 $1.0 2020 Operating company dividend capacity $1,078 $0.9 Less: Last twelve months dividends (1,055) 0.7 Current operating company divi
Slide 14: Investment Portfolio
Investment Portfolio Well-diversified and liquid investment portfolio Net Unrealized Highlights March 31, 2020 Carrying Value G/(L) • High-quality portfolio with an average credit rating Asset Class ($M) $ % $ of “A” Investment Grade Corp 19,085 44 % 867 • Liquidity supports underlying liability cha
Slide 15: Pre-Tax Net Investment Income
Pre-Tax Net Investment Income NII adversely impacted by negative equity returns; fixed income in line with prior four quarters $M $571 $515 $487 $545 $329 Highlights $10 • The fixed income portfolio continues to $12 $7 $7 provide consistent earnings $96 $69 $5 $43 $18 • Q1 2020 limited partnership a