Cna Financial Corporation · NYSE:CNA
Cna Financial — Q2 2021 Earnings Presentation
15 slides from Cna Financial's earnings presentation, Aug 2, 2021
Slide 1: CNA Financial Corporation Second Quarter 2021 Results
CNA Financial Corporation Second Quarter 2021 Results August 2, 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: Second Quarter Overview
Second Quarter Overview • Net income of $368 million or $1.35 per share; record core income of $341 million or $1.25 per share. • The P&C combined ratio was 94.0% compared with 109.2% in the prior year quarter, including 2.8 points of catastrophe loss impact compared with 17.5 points in the prior ye
Slide 4: Financial Performance
Financial Performance Record core income of $341M and core ROE of 11.3% reflect improved underlying combined ratio, lower catastrophes and higher limited partnership returns (In millions, except ratios and per share data) Second Quarter Year to Date 2021 2020 Change 2021 2020 Change Revenues $3,029
Slide 5: Property & Casualty Operations
Property & Casualty Operations Best underlying combined ratio on record and continued strong growth in the second quarter (In millions, except ratios) Second Quarter Year to Date 2021 2020 2021 2020 GWP ex. 3rd party captives $2,296 $2,132 $4,566 $4,239 GWP change (% year over year) 8% 8% Net writte
Slide 6: Specialty
Specialty Exceptional underlying combined ratio of 89.2% driven by improvement in loss ratio and expense ratio; continued strong growth (In millions, except ratios) Second Quarter Year to Date 2021 2020 2021 2020 GWP ex. 3rd party captives $897 $811 $1,713 $1,552 GWP change (% year over year) 11 % 1
Slide 7: Specialty Production Metrics
Specialty Production Metrics Sixth consecutive quarter of double-digit rate increases and steady retention Specialty Rate & Retention 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Rate Retention 86% 87% 87% 86% 85% 83% 12% 13% 13% 11% 10% 10% GWP ex. 3rd party captives ($M) $741 $811 $861 $883 $816 $897 New Business
Slide 8: Commercial
Commercial Stable underlying combined ratio reflects expense ratio improvement offset by higher loss ratio as a result of COVID-19 frequency benefit in 2020 (In millions, except ratios) Second Quarter Year to Date 2021 2020 2021 2020 GWP ex. 3rd party captives $1,060 $1,044 $2,171 $2,103 GWP change
Slide 9: Commercial Production Metrics
Commercial Production Metrics Improved production throughout the quarter despite disruption of cyber event Commercial Rate & Retention 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Rate Retention 86% 84% 82% 83% 83% 81% 9% 10% 11% 10% 11% 8% GWP ex. 3rd party captives ($M) $1,059 $1,044 $915 $975 $1,111 $1,060 New Bu
Slide 10: International
International Re-Underwriting efforts produced increasingly consistent profitable performance which led to very strong growth (In millions, except ratios) Second Quarter Year to Date 2021 2020 2021 2020 Gross written premium $339 $277 $682 $584 GWP change (% year over year) 22 % 17 % Net written pre
Slide 11: Life & Group
Life & Group Core income in the quarter driven by strong limited partnership returns (In millions) Second Quarter Year to Date 2021 2020 2021 2020 Net earned premiums $126 $126 $246 $253 Net investment income 265 206 484 414 Other revenues (1) — — — Total operating revenues $390 $332 $730 $667 Total
Slide 12: Financial Strength
Financial Strength Conservative capital and debt profile support business objectives June 30, Dec 31, (In millions, except per share data) 2021 2020 Debt $2,777 $2,776 Stockholders' Equity 12,668 12,707 Capital Total capital $15,445 $15,483 • Capital remains above target levels required for all curr
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 June 30, 2021 2021 Operating company dividend capacity $1,070 $1.6 $1.3 $1.4 Less: Last twelve months d
Slide 14: Investment Portfolio
Investment Portfolio Diversified and liquid investment portfolio Net Highlights Unrealized June 30, 2021 Carrying Value G/(L) • High-quality portfolio with an average credit rating of “A” Asset Class ($M) $ % $ • Liquidity supports underlying liability Investment Grade Corp 22,340 44 % 2,993 charact
Slide 15: Pretax Net Investment Income
Pretax Net Investment Income Consistent fixed income earnings and strong limited partnership and common stock returns $M $534 $517 $555 $504 $591 $3 $10 $3 $4 Highlights $84 $114 $156 $71 $61 • The fixed income portfolio continues to provide consistent earnings; headwinds from lower rate environment