NYSE$CNA

CNA Financial Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

CNA announced second quarter 2022 net income and core income, with P&C segments showing strong underwriting results and premium growth.

CNA Financial Corporation reported a net income of $205 million, or $0.75 per share, and a core income of $245 million, or $0.90 per share, for the second quarter of 2022. The P&C segments experienced growth in gross written premiums and improved underwriting results, while the Life & Group segment and Corporate & Other segment reported lower core income.

  • Net income was $205 million, or $0.75 per share, compared to $368 million, or $1.35 per share, in the prior year quarter.
  • Core income was $245 million, or $0.90 per share, versus $341 million, or $1.25 per share, in the prior year quarter.
  • P&C combined ratio was 91.0%, the lowest in over five years, compared to 94.0% in the prior year quarter.
  • P&C segments, excluding third party captives, generated gross written premium growth of 17% and net written premium growth of 20%.

Headline financials

Total Revenue

$2.93B

Previous: $3.03B-3.4%
EPS (adj)

$0.90

Previous: $1.25-28.0%
Capital Expenditures

-$25M

Previous: -$5M-400.0%
Free Cash Flow

$180M

Previous: $363M-50.4%
Net Income

$205M

Previous: $368M-44.3%
Operating Income

$558M

Previous: $762M-26.8%
Gross Profit

$969M

Previous: $1.13B-13.9%
Cash & Equivalents

$560M

Previous: $462M+21.2%
Total Assets

$62.2B

Previous: $66.2B-6.0%

Revenue & EPS history

CNA · Revenue · Quarterly

$2.93B

Q2 2022-3.4%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

CNA Financial remains optimistic about market conditions and growth opportunities for the remainder of the year.

Tailwinds

  • P&C underwriting gain was up 64%, reflecting higher underlying underwriting income, lower cats, and favorable prior period development.
  • The underlying combined ratio of 90.8% is our lowest on record.
  • P&C gross written premium growth ex captives of 17% in the quarter.
  • Strongest retention in nearly five years and very strong new business growth.
  • Earned rate of 8% remains above loss cost trends.

Headwinds

  • Core income of $245 million was down 28% this quarter due to a $171 million decline from LPs and common stock.
  • Corporate & Other includes a $51 million after-tax charge related to unfavorable prior period development largely associated with legacy mass tort abuse claims.
  • Life & Group core income decreased $37 million primarily due to lower net investment income.
  • Net investment income decreased $159 million as compared with the prior year quarter.
  • Stockholders’ equity of $9.5 billion decreased 26% from year-end 2021, primarily due to net unrealized investment losses

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 Q2 2022

Historical avgQ2 2022

+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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