Cna Financial Corporation · NYSE:CNA
Cna Financial — Q1 2023 Earnings Presentation
17 slides from Cna Financial's earnings presentation, May 1, 2023
Slide 1: CNA Financial Corporation First Quarter 2023 Results
CNA Financial Corporation First Quarter 2023 Results May 1, 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: First Quarter Overview
First Quarter Overview • Net income of $297 million versus $295 million in the prior year quarter; core income up 9% to $325 million versus $298 million in the prior year quarter. • P&C core income of $346 million versus $321 million, reflects higher investment income and record high pretax underlyi
Slide 4: Financial Performance
Financial Performance Core income up 9% driven by record P&C underlying underwriting income and strong investment results (In millions, except ratios and per share data) First Quarter 2023 2022 1 Change Revenues $3,152 $2,885 9% Core income 325 298 9% Net income 297 295 1% Diluted earnings per commo
Slide 5: Property & Casualty Operations
Property & Casualty Operations Excellent growth and profitability (In millions, except ratios) First Quarter 2023 2022 GWP ex. 3rd party captives $2,724 $2,454 GWP change (% year over year) 11 % Net written premium $2,247 $2,023 NWP change (% year over year) 11 % Net earned premium $2,133 $1,940 NEP
Slide 6: Property & Casualty Production Metrics
Property & Casualty Production Metrics Consistent high retention and rate of +5% is up an additional point Property & Casualty Rate & Retention 2022 2023 Q1 Q2 Q3 Q4 Q1 84% 86% 86% 86% 86% Retention Renewal Premium Change 10% 8% 8% 7% 7% Rate 7% 6% 5% 4% 5% GWP ex. 3rd party captives ($M) $2,454 $2,
Slide 7: Specialty
Specialty Strong all-in and underlying combined ratios (In millions, except ratios) First Quarter 2023 2022 GWP ex. 3rd party captives $886 $885 GWP change (% year over year) —% Net written premium $788 $771 NWP change (% year over year) 2% Net earned premium $797 $772 NEP change (% year over year)
Slide 8: Specialty Production Metrics
Specialty Production Metrics Consistently high retention and continued rate moderation Specialty Rate & Retention 2022 2023 Q1 Q2 Q3 Q4 Q1 85% 88% 88% 88% 84% Retention 11% Renewal Premium Change 9% 6% Rate 3% 4% 10% 7% 5% 3% 2% GWP ex. 3rd party captives ($M) $885 $973 $958 $998 $886 New Business (
Slide 9: Commercial
Commercial Excellent top and bottom line performance (In millions, except ratios) First Quarter 2023 2022 GWP ex. 3rd party captives $1,440 $1,206 GWP change (% year over year) 19 % Net written premium $1,188 $1,001 NWP change (% year over year) 19 % Net earned premium $1,046 $904 NEP change (% year
Slide 10: Commercial Production Metrics
Commercial Production Metrics Rate of +7% is up an additional 2 points driven by Property with continued strong retention Commercial Rate & Retention 2022 2023 Q1 Q2 Q3 Q4 Q1 87% 87% 86% 86% 86% Retention Renewal Premium Change 9% 9% 8% 7% 7% Rate 5% 5% 5% 7% 4% GWP ex. 3rd party captives ($M) $1,20
Slide 11: International
International Continued profitable growth (In millions, except ratios) First Quarter 2023 2022 Gross written premium $398 $363 GWP change (% year over year)1 10 % Net written premium $271 $251 NWP change (% year over year)1 8% Net earned premium $290 $264 NEP change (% year over year) 10 % Underwrit
Slide 12: Life & Group
Life & Group Results include the adoption of LDTI accounting (In millions) First Quarter 2023 2022 1 Net earned premiums $115 $120 Net investment income 214 212 Other revenues — (1) Total operating revenues $329 $331 Total claims, benefits and expenses 341 338 Income tax benefit 9 12 Core (loss) inc
Slide 13: Pretax Net Investment Income
Pretax Net Investment Income Higher yields on fixed income securities continue to be a significant earnings tailwind Total CNAF Highlights $M • Net investment income of $525M is up 17% driven by fixed income and LPs and common stock. 448 432 503 525 • Fixed income continues to benefit from favorable
Slide 14: Investment Portfolio
Investment Portfolio High quality, diversified and liquid investment portfolio Fixed Maturities by Rating % of Portfolio AAA 12% AA 16% Highlights A 25% • 90% of total invested assets are in fixed income securities BBB 42% Investment Grade 95% • High-quality portfolio with an average credit rating o
Slide 15: Financial Strength
Financial Strength Conservative capital and debt profile and ample liquidity support business objectives Mar 31, Dec 31, Capital (In millions, except per share data) 2023 2022 1 Debt $2,782 $2,781 • Financial strength ratings from all four rating Stockholders' equity 8,667 8,548 agencies were affirm
Slide 16: Appendix
Appendix CNA
Slide 17: Commercial Real Estate Exposure
Commercial Real Estate Exposure Fixed Income and Direct Mortgage Loans March 31, 2023 March 31, 2023 Estimated Fair Net Unrealized Estimated Fair Net Unrealized (In millions) Value Gains (Losses) (In millions) Value Gains (Losses) Commercial mortgage-backed: Corporate and other bonds - REITs: Single