NYSE$CNA

CNA Financial Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

CNA Financial reported Q4 2021 net income and core income, with P&C segments contributing significantly despite higher catastrophe losses. The company achieved its lowest combined ratio in five years and demonstrated strong premium growth.

CNA Financial Corporation announced a net income of $266 million, or $0.98 per share, for Q4 2021, with a core income of $265 million, or $0.97 per share. The P&C segments showed a strong performance, with a combined ratio of 92.9%, the lowest in five years, despite higher catastrophe losses. Gross written premiums ex captives grew by 16%, and net written premiums grew by 11%.

  • Net income was $266 million, or $0.98 per share; core income was $265 million, or $0.97 per share.
  • P&C segments produced core income of $353 million.
  • P&C combined ratio was 92.9%, the lowest in five years.
  • Gross written premium growth ex captives was 16%.

Headline financials

Total Revenue

$3.05B

Previous: $2.93B+4.2%
EPS (adj)

$0.97

Previous: $1.23-21.1%
Expense Ratio

30.8%

No prior period
Combined Ratio

92.9%

No prior period
Loss Ratio

61.8%

No prior period
Capital Expenditures

$10M

Previous: $7M+42.9%
Free Cash Flow

$633M

Previous: $360M+75.8%
Net Income

$266M

Previous: $387M-31.3%
Gross Profit

$3.05B

Previous: $2.81B+8.7%
Cash & Equivalents

$536M

Previous: $45B-98.8%
Total Assets

$66.6B

Previous: $64B+4.1%

Revenue & EPS history

CNA · Revenue · Quarterly

$3.05B

Q4 2021+4.2%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

CNA Financial is optimistic about its opportunities and remains well positioned to capitalize on the favorable market conditions anticipated in 2022, given its strong performance on growth, rate, and profitability.

Tailwinds

  • Strong fourth quarter performance in the property and casualty business.
  • Gross written premium growth ex captives was 16% in the quarter and 10% for the year.
  • New business growth was 28% in the quarter and 19% for the full year.
  • Rates were stable with the third quarter at 8%, and for the full year, 9% was achieved.
  • Lowest quarterly and annual combined ratio in five years at 92.9% and 96.2%, respectively.

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 2021

Historical avgQ4 2021

+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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