CNA FINANCIAL ANNOUNCES THIRD QUARTER 2024 NET INCOME OF $1.04 PER SHARE AND CORE INCOME OF $1.08 PER SHARE
Net income up 10% to $283 million versus $258 million in the prior year quarter; core income of $293 million versus $289 million in the prior year quarter. Year to date core income up 6% to a record $974 million.
P&C core income of $346 million versus $351 million, reflects the largely offsetting impacts of higher catastrophe losses and higher investment income.
Life & Group core loss of $9 million versus $29 million in the prior year quarter, reflects higher investment income.
Net investment income up 13% to $626 million pretax, includes a $52 million increase from limited partnerships and common stock to $80 million and a $21 million increase from fixed income securities and other investments to $546 million.
P&C combined ratio of 97.2%, compared with 94.3% in the prior year quarter, including 5.8 points of catastrophe loss impact compared with 4.1 points in the prior year quarter. P&C underlying combined ratio was 91.6% compared with 90.4% in the prior year quarter. P&C underlying loss ratio was 61.1% and the expense ratio was 30.2%.
Preannounced catastrophe losses of $143 million pretax, includes $55 million for Hurricane Helene, versus $94 million in the prior year quarter.
P&C segments, excluding third party captives, generated gross written premium growth of 9% and net written premium growth of 8% for the third quarter of 2024.
P&C renewal premium change of +5%, consistent with the prior quarter, with written rate of +3%. Commercial renewal premium change of +8% and Specialty renewal premium change of +2%, each up 1 point from the prior quarter. International renewal premium change of +1%, down 1 point from the prior quarter.
Book value per share of $39.72; book value per share excluding AOCI of $46.50, a 7% increase from year-end 2023 adjusting for $3.32 of dividends per share paid.
Board of Directors declares regular quarterly cash dividend of $0.44 per share.
CHICAGO, Nov. 4, 2024 /PRNewswire/ -- CNA Financial Corporation (NYSE:CNA) today announced third quarter 2024 net income of $283 million, or $1.04 per share, versus $258 million, or $0.95 per share, in the prior year quarter. Net investment losses for the quarter were $7 million compared to $31 million in the prior year quarter. Core income for the quarter was $293 million, or $1.08 per share, versus $289 million, or $1.06 per share, in the prior year quarter.
Our Property & Casualty segments produced core income of $346 million for the third quarter of 2024, a decrease of $5 million compared to the prior year quarter driven by the largely offsetting impacts of higher catastrophe losses and higher investment income. P&C segments, excluding third party captives, generated gross written premium growth of 9% and net written premium growth of 8%, driven by new business growth of 15%, retention of 85% and renewal premium change of +5%.
Our Life & Group segment produced a core loss of $9 million for the third quarter of 2024, versus core loss of $29 million in the prior year quarter. Our Corporate & Other segment produced a core loss of $44 million for the third quarter of 2024, versus $33 million in the prior year quarter.
CNA Financial declared a quarterly dividend of $0.44 per share payable December 5, 2024 to stockholders of record on November 18, 2024.
Results for the Three Months Ended September 30
Results for the Nine Months Ended September 30
($ millions, except per share data)
2024
2023
2024
2023
Net income
$ 283
$ 258
$ 938
$ 838
Core income (a)
293
289
974
922
Net income per diluted share
$ 1.04
$ 0.95
$ 3.44
$ 3.08
Core income per diluted share
1.08
1.06
3.57
3.39
September 30, 2024
December 31, 2023
Book value per share
$
39.72
$
36.52
Book value per share excluding AOCI
46.50
46.39
(a)
Management utilizes the core income (loss) financial measure to monitor the Company's operations. Please refer herein to the Reconciliation of GAAP Measures to Non-GAAP Measures section of this press release for further discussion of this non-GAAP measure.
"We continue to produce excellent results with core income increasing to $293 million and our core income after nine months is a record high of $974 million. Net investment income was up 13% and the P&C all-in combined ratio was 97.2%, inclusive of pretax catastrophe losses of $143 million or 5.8 points which is consistent with our third quarter average over the last five years.
The underlying combined ratio was 91.6%, the fifteenth consecutive quarter below 92%, and included a record low underlying combined ratio of 90.7% in Commercial.
Gross written premium ex. captives was up 9%, and net written premium was up 8%, each up two points from last quarter and representing the strongest quarterly growth of the year. Renewal premium change increased by a point in the U.S. to 6% and increased by two points for Commercial excluding workers' compensation to 10%. Rate change remained stable in the U.S. at 4%.
New business grew 15%, also the highest of the year with strong contributions from Commercial and International. The overall P&C retention remained strong at 85% for the quarter.
We are very pleased with our results for the quarter with the continuation of strong renewal pricing in the lines most impacted by social inflation, which continues to exceed our loss cost trends. We remain optimistic about our abilities to capitalize on the favorable market conditions we expect to persist in many classes of business," said Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.
Property & Casualty Operations
Results for the Three Months Ended September 30
Results for the Nine Months Ended September 30
($ millions)
2024
2023
2024
2023
Gross written premiums ex. 3rd party captives
$ 2,825
$ 2,595
$ 8,964
$ 8,305
GWP ex. 3rd party captives change (% year over year)
9
%
8
%
Net written premiums
$ 2,360
$ 2,178
$ 7,424
$ 6,938
NWP change (% year over year)
8
%
7
%
Net earned premiums
$ 2,484
$ 2,295
$ 7,204
$ 6,662
NEP change (% year over year)
8
%
8
%
Underwriting gain
$ 68
$ 131
$ 318
$ 399
Net investment income
$ 372
$ 318
$ 1,090
$ 951
Core income
$ 346
$ 351
$ 1,098
$ 1,071
Loss ratio
66.7
%
63.9
%
64.9
%
63.1
%
Effect of catastrophe impacts
(5.8)
(4.1)
(4.3)
(3.2)
Effect of development-related items
0.2
0.2
0.2
—
Underlying loss ratio
61.1
%
60.0
%
60.8
%
59.9
%
Expense ratio
30.2
%
30.1
%
30.3
%
30.6
%
Combined ratio
97.2
%
94.3
%
95.6
%
94.0
%
Underlying combined ratio
91.6
%
90.4
%
91.5
%
90.8
%
The underlying combined ratio increased 1.2 points as compared with the prior year quarter. The underlying loss ratio increased 1.1 points as compared with the prior year quarter due to increases in our Commercial and Specialty segments. The expense ratio was generally consistent with the prior year quarter, with the impact of a favorable International reinsurance acquisition related catch-up adjustment in the prior year quarter largely offset by higher net earned premiums in the current quarter.
The combined ratio increased 2.9 points as compared with the prior year quarter which reflects an underwriting gain of $68 million compared with $131 million in the prior year quarter. Preannounced catastrophe losses were $143 million, or 5.8 points of the loss ratio in the quarter compared with $94 million, or 4.1 points of the loss ratio, for the prior year quarter. Catastrophe losses for the third quarter of 2024 include $55 million for Hurricane Helene. Favorable net prior period development improved the loss ratio by 0.2 points in the current and prior year quarter.
P&C segments, excluding third party captives, generated gross written premium growth of 9% and net written premium growth of 8%.
Business Operating Highlights
Specialty
Results for the Three Months Ended September 30
Results for the Nine Months Ended September 30
($ millions)
2024
2023
2024
2023
Gross written premiums ex. 3rd party captives
$ 982
$ 949
$ 2,846
$ 2,796
GWP ex. 3rd party captives change (% year over year)
3
%
2
%
Net written premiums
$ 862
$ 825
$ 2,511
$ 2,438
NWP change (% year over year)
4
%
3
%
Net earned premiums
$ 848
$ 829
$ 2,493
$ 2,438
NEP change (% year over year)
2
%
2
%
Underwriting gain
$ 59
$ 83
$ 195
$ 237
Loss ratio
60.1
%
58.0
%
59.3
%
58.2
%
Effect of catastrophe impacts
—
—
—
—
Effect of development-related items
—
0.6
0.3
0.3
Underlying loss ratio
60.1
%
58.6
%
59.6
%
58.5
%
