NYSE$CNA

CNA Financial Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced Q4 2023 net income of $1.35 per share and record core income of $1.33 per share.

CNA Financial reported a strong Q4 2023, with net income up 54% to $367 million and core income up 37% to a record $362 million. The Property & Casualty segment drove core income growth, supported by higher investment and underwriting income.

  • Net income increased by 54% to $367 million compared to the prior year quarter.
  • Core income reached a record $362 million, up 37% from the prior year quarter.
  • P&C core income rose to $434 million, driven by higher investment and underwriting income.
  • The company's combined ratio improved to 92.1%, reflecting lower catastrophe losses.

Headline financials

Total Revenue

$611M

Previous: $3.11B-80.4%
EPS (adj)

$1.33

Previous: $1.01+31.7%
Capital Expenditures

$23M

Previous: $11M+109.1%
Net Income

$367M

Previous: $248M+48.0%
Operating Income

$186M

Previous: $134M+38.8%
Gross Profit

$3.44B

Previous: $2.9B+18.5%

Revenue & EPS history

CNA · Revenue · Quarterly

$611M

Q4 2023-80.4%vs Q4 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

CNA Financial is optimistic about its prospects for the coming year, citing broad-based profitability and a track record of double-digit growth.

Tailwinds

  • Favorable terms and conditions from the hard market are expected to persist into 2024.
  • Renewal premium change in Commercial was 9% in the quarter, and 11% excluding workers' compensation, exceeding loss cost trends.
  • Underlying and all-in underwriting income achieved record levels.
  • Pretax net investment income increased by 25%.
  • Net and gross written premiums ex. captives each grew by 10%.

Headwinds

  • Corporate & Other segment produced a core loss of $76 million, reflecting a $19 million after-tax charge related to office consolidation.
  • Specialty segment's underlying combined ratio increased 2.0 points due to higher acquisition and employee-related costs.
  • International segment's underlying combined ratio increased 0.8 points due to higher employee-related costs.
  • International segment's gross written premiums and net written premiums, excluding currency fluctuations, both declined 3%.
  • The fourth quarter underlying combined ratio increased 0.2 points as compared with the prior year quarter.

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 2023

Historical avgQ4 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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