NYSE$CNA

CNA Financial Corporation · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

CNA Financial announced fourth quarter 2019 results, reporting net income of $273 million and core income of $265 million.

CNA Financial Corporation reported a strong fourth quarter in 2019, marked by a P&C combined ratio of 95.6% and an underlying combined ratio of 94.9%. The company's net income for the quarter was $273 million, or $1.00 per share, while core income reached $265 million, or $0.97 per share.

  • Net income for Q4 2019 was $273 million, or $1.00 per share.
  • Core income for Q4 2019 was $265 million, or $0.97 per share.
  • The P&C combined ratio for Q4 2019 was 95.6%, with an underlying combined ratio of 94.9%.
  • Net written premiums grew by 5% for both the fourth quarter and the full year.

Headline financials

Total Revenue

$2.78B

Previous: $2.4B+15.6%
EPS (adj)

$0.97

Previous: $0.74+31.1%
Capital Expenditures

$6M

Previous: $12M-50.0%
Free Cash Flow

$154M

Previous: $347M-55.6%
Net Income

$273M

Previous: -$84M+425.0%
Operating Income

$545M

No prior period
Gross Profit

$2.78B

Previous: $2.4B+15.6%
Cash & Equivalents

$45B

Previous: $310M+14416.1%
Total Assets

$60.6B

Previous: $57.2B+6.1%

Revenue & EPS history

CNA · Revenue · Quarterly

$2.78B

Q4 2019+15.6%vs Q4 2018
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

CNA is well-positioned going into 2020.

Tailwinds

  • Fourth quarter premium rates increased to 7%.
  • Gross premiums increased to 8%.
  • Strong underwriting quarter.
  • Underlying combined ratio improved for the third consecutive year to 94.9%.
  • U.S. P&C segments net written premiums grew 6%.

Headwinds

  • Life & Group segment produced core losses of $(4) million.
  • Corporate & Other segments produced core losses of $(68) million.
  • The latter driven by a $48 million after-tax non-economic charge related to asbestos and environmental pollution.
  • Expense ratio increased 0.5 point driven by year-end true-ups in acquisition expenses.
  • Hardy's strategic exit from certain business classes announced in the fourth quarter of 2018.

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 Q4 2019

Historical avgQ4 2019

+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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