Cna Financial Corporation · NYSE:CNA
Cna Financial — Q1 2021 Earnings Presentation
15 slides from Cna Financial's earnings presentation, May 3, 2021
Slide 1: CNA Financial Corporation First Quarter 2021 Results
CNA Financial Corporation First Quarter 2021 Results May 3, 2021
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 Overview
First Quarter Overview • Core earnings per share of $0.96 with core return on equity of 8.8% • Underlying combined ratio of 91.9% compared with 93.7% in the prior year quarter, driven by 1.6 points of improvement in the expense ratio • Strong combined ratio of 98.1% in the quarter, including $125 mi
Slide 4: Financial Performance
Financial Performance Strong core income notwithstanding largest ever first quarter catastrophes (In millions, except ratios and per share data) First Quarter 2021 2020 Change Revenues $2,866 $2,291 25 % Core income 263 108 144 % Net income (loss) 312 (61) N/M Diluted earnings per common share: Core
Slide 5: Property & Casualty Operations
Property & Casualty Operations Strong underlying performance and gross written premium growth, excluding third party captives (In millions, except ratios) First Quarter 2021 2020 GWP ex. 3rd party captives $2,270 $2,107 GWP change (% year over year) 8% Net written premium $1,937 $1,863 NWP change (%
Slide 6: Specialty
Specialty Excellent underwriting results and growth (In millions, except ratios) First Quarter 2021 2020 GWP ex. 3rd party captives $816 $741 GWP change (% year over year) 10 % Net written premium $742 $694 NWP change (% year over year) 7% Underwriting gain $83 $59 Loss ratio excl. catastrophes and
Slide 7: Specialty Production Metrics
Specialty Production Metrics Five quarters of double-digit rate; strong retention and new business growth Specialty Rate & Retention 2020 2021 Q1 Q2 Q3 Q4 Q1 Rate Retention 86% 87% 86% 86% 83% 11% 13% 13% 10% 10% GWP ex. 3rd party captives ($M) $741 $811 $861 $883 $816 New Business ($M) $74 $96 $105
Slide 8: Commercial
Commercial Continued underlying underwriting improvement (In millions, except ratios) First Quarter 2021 2020 GWP ex. 3rd party captives $1,111 $1,059 GWP change (% year over year) 5% Net written premium $960 $950 NWP change (% year over year) 1% Underwriting loss ($57) ($13) Loss ratio excl. catast
Slide 9: Commercial Production Metrics
Commercial Production Metrics Four quarters of double-digit rate and strong retention Commercial Rate & Retention 2020 2021 Q1 Q2 Q3 Q4 Q1 Rate Retention 86% 84% 84% 84% 82% 10% 11% 10% 10% 8% GWP ex. 3rd party captives ($M) $1,059 $1,044 $915 $975 $1,111 New Business ($M) $198 $198 $167 $197 $211 M
Slide 10: International
International Continued improvement in underwriting performance and strong growth fueled by rate of +14% (In millions, except ratios) First Quarter 2021 2020 Gross written premium $343 $307 GWP change (% year over year) 12 % Net written premium $235 $219 NWP change (% year over year) 7% Underwriting
Slide 11: Life & Group
Life & Group Core income in the quarter reflects continuation of favorable morbidity trends (In millions) First Quarter 2021 2020 Net earned premiums $120 $127 Net investment income 219 208 Other revenues 1 — Total operating revenues $340 $335 Total claims, benefits and expenses 308 345 Income tax b
Slide 12: Financial Strength
Financial Strength Conservative capital and debt profile support business objectives Mar 31, Dec 31, (In millions, except per share data) 2021 2020 Debt $2,777 $2,776 Stockholders' Equity 12,089 12,707 Capital Total capital $14,866 $15,483 • Capital remains above target levels required for all curre
Slide 13: Liquidity Profile
Liquidity Profile Ample liquidity at both holding and operating company levels to meet corporate obligations 1 Holding Co. Liquidity & Obligations Operating Company Liquidity $M $b $1.8 $1.8 As of Mar 31, 2021 2021 Operating company dividend capacity $1,070 $1.4 $1.3 Less: Last twelve months dividen
Slide 14: Investment Portfolio
Investment Portfolio Diversified and liquid investment portfolio Net Highlights Unrealized March 31, 2021 Carrying Value G/(L) • High-quality portfolio with an average credit rating of “A” Asset Class ($M) $ % $ • Liquidity supports underlying liability Investment Grade Corp 21,501 44 % 2,463 charac
Slide 15: Pretax Net Investment Income
Pretax Net Investment Income Consistent fixed income earnings and solid limited partnership and common equity returns $M $329 $534 $517 $555 $504 $3 $10 $3 $4 Highlights $5 $84 $71 $114 $61 • The fixed income portfolio continues to provide consistent earnings despite headwinds from lower rate enviro