NYSE$CNA

CNA Financial Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

CNA reported a strong third quarter with increased net income and core income, driven by growth in P&C segments and improved investment income.

CNA Financial announced a net income of $258 million and core income of $289 million for Q3 2023, marking a significant improvement compared to the prior year. The P&C segments drove core income growth, supported by higher net investment income and lower catastrophe losses, while the Life & Group segment showed improved performance.

  • Net income reached $258 million, or $0.95 per share, compared to a net loss of $42 million in the prior year quarter.
  • Core income increased to $289 million, or $1.06 per share, up from $43 million in the prior year quarter.
  • P&C core income rose by 35% to $351 million, driven by higher net investment income, record high pretax underlying underwriting income, and lower catastrophe losses.
  • The P&C combined ratio was 94.3%, with an underlying combined ratio of 90.4%.

Headline financials

Total Revenue

$3.34B

Previous: $2.96B+12.8%
EPS (adj)

$1.06

Previous: $0.78+35.9%
Capital Expenditures

-$67M

Previous: -$41M-63.4%
Free Cash Flow

$191M

Previous: $87M+119.5%
Net Income

$258M

Previous: $128M+101.6%
Operating Income

$663M

Previous: $478M+38.7%
Gross Profit

$1.08B

Previous: $901M+19.8%
Cash & Equivalents

$485M

Previous: $503M-3.6%
Total Assets

$62B

Previous: $60.2B+2.9%

Revenue & EPS history

CNA · Revenue · Quarterly

$3.34B

Q3 2023+12.8%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

CNA Financial does not provide specific forward guidance in this earnings report. However, the CEO expressed confidence in the company's ability to leverage favorable market conditions and continue to cover long-run loss cost trends.

Tailwinds

  • Continued strong results with a significant increase in core income.
  • 31% increase in net investment income.
  • Record levels of P&C underlying underwriting gain.
  • Lower levels of catastrophe loss.
  • Improved results in Life & Group.

Headwinds

  • No specific negative aspects were mentioned in the forward guidance.

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 Q3 2023

Historical avgQ3 2023

+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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