NYSE$CNA

CNA Financial Corporation · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

CNA Financial reported a record first quarter core income, driven by growth in net investment income and strong P&C performance.

CNA Financial Corporation announced first quarter 2024 net income of $338 million, or $1.24 per share, versus $297 million, or $1.09 per share, in the prior year quarter. Core income for the quarter was $355 million, or $1.30 per share. The P&C segments produced core income of $372 million.

  • Net income increased by 14% to $338 million compared to $297 million in the prior year quarter.
  • Core income rose by 9% to $355 million, marking the best first quarter core income on record.
  • Net investment income grew by 16% to $609 million pretax.
  • P&C combined ratio was 94.6%, with an underlying combined ratio of 91.0%.

Headline financials

Total Revenue

$3.44B

Previous: $3.15B+9.3%
EPS

$1.24

Previous: $1.19+4.2%
Net Written Premiums

$2.39B

No prior period
Underwriting Gain

$126M

No prior period
Catastrophe Losses

$88M

No prior period
Underlying UW Gain

$209M

No prior period
Book Value / Share

$38.82

No prior period
BVPS ex-AOCI

$46.16

No prior period
Capital Expenditures

-$20M

Previous: $20M-200.0%
Free Cash Flow

$318M

Previous: $416M-23.6%
Net Income

$338M

Previous: $297M+13.8%
Operating Income

$771M

Previous: $130M+493.1%
Gross Profit

$1.19B

Previous: $3.15B-62.2%
Cash & Equivalents

$409M

Previous: $483M-15.3%
Total Assets

$65.1B

Previous: $62.1B+4.9%

Revenue & EPS history

CNA · Revenue · Quarterly

$3.44B

Q1 2024+9.3%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

CNA anticipates robust opportunities for profitable growth and continued investment return improvements throughout the remainder of 2024.

Tailwinds

  • Strong top and bottom line P&C performance
  • Property market remains very favorable
  • Casualty rate increases continue to accelerate
  • Retention remained strong at 85%
  • Renewal premium change was up a point to 6%

Headwinds

  • Catastrophe losses were $88 million, or 3.8 points of the loss ratio
  • Growth in Specialty and International were each impacted by the protracted competitive pressures in management liability lines
  • Underlying combined ratio increased 0.2 points as compared with the prior year quarter
  • Underlying loss ratio increased 0.7 points as compared with the prior year quarter
  • The expense ratio increased 1.4 points driven by higher employee related costs partially offset by net earned premium growth of 9%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.6%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+0.2%

Avg return

30 days after

54%

33 / 61 earnings

Positive

+8.9%

Q3 2020

Best reaction

-7.9%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-7.9%-9.4%-12.8%
Q4 2025-1.4%-2.3%-5.9%
Q3 2025-1.3%+1.5%+3.3%
Q1 2025-0.5%+0.1%-2.7%
Q4 2024+1.2%-0.7%-2.9%
Q3 2024-0.1%+3.8%+4.8%
Q2 2024+2.5%+0.8%+6.8%
Q1 2024-0.5%+1.2%+1.7%
Q4 2023+6.4%+6.0%+2.2%
Q3 2023+2.2%+1.3%+4.7%
Q2 2023-1.1%+4.8%-0.9%
Q1 2023+1.0%+2.6%-5.3%
Q4 2022+5.9%+6.0%-0.0%
Q3 2022+0.6%+0.3%+1.0%
Q2 2022-5.8%-5.7%-9.3%
Q1 2022-4.5%-4.0%-3.9%
Q4 2021+1.9%+1.1%-4.5%
Q3 2021+3.3%+2.2%-6.8%
Q2 2021-0.0%+0.6%+1.3%
Q1 2021+1.5%+3.0%+1.6%
Q4 2020+5.8%+6.0%+12.7%
Q3 2020+8.9%+9.3%+19.6%
Q2 2020-3.0%+2.6%-3.0%
Q1 2020-0.1%+1.3%+8.8%
Q4 2019+8.3%+7.5%-17.2%
Q3 2019-1.5%-1.1%-2.4%
Q2 2019+0.5%+2.4%+0.8%
Q1 2019+2.2%+1.0%-0.6%
Q4 2018-7.1%-4.3%-7.1%
Q3 2018+7.8%+10.3%+4.4%
Q2 2018-3.8%-4.7%-7.2%
Q1 2018+2.5%-0.9%-3.2%
Q4 2017+5.9%+8.9%+6.3%
Q3 2017+6.6%+8.2%+7.3%
Q2 2017+6.8%+7.6%-0.3%
Q1 2017+0.2%+0.8%+0.8%
Q4 2016+0.2%+0.3%+2.8%
Q3 2016+4.3%+3.2%+9.9%
Q2 2016-1.0%+3.0%+4.6%
Q1 2016+3.1%
Q4 2015-7.3%
Q3 2015+0.5%
Q2 2015-1.6%
Q1 2015-1.8%
Q4 2014+4.5%
Q3 2014-0.6%
Q2 2014-2.4%
Q1 2014-6.6%
Q4 2013+7.2%
Q3 2013+2.3%
Q2 2013+2.3%
Q1 2013+1.0%
Q4 2012+0.3%
Q3 2012+2.3%
Q2 2012-3.3%
Q4 2011-1.2%
Q3 2011-0.9%
Q2 2011-2.9%
Q1 2010-1.5%
Q4 2010+1.2%
Q3 2010-2.2%

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