Earnings Document
FOR IMMEDIATE RELEASE
CNA FINANCIAL ANNOUNCES THIRD QUARTER 2022
NET INCOME OF
- Net income of
$128 million , which includes$85 million of net investment losses, versus net income of$256 million , which includes$19 million of net investment gains, in the prior year quarter. - Core income of
$213 million versus$237 million in the prior year quarter reflects a$121 million pretax decline in investment income from LPs and common stock, partially offset by a$28 million pretax increase in investment income from fixed income securities and an$85 million pretax increase in P&C underwriting income. - P&C core income of
$260 million versus$217 million in the prior year quarter reflects higher pretax underwriting income and higher investment income from fixed income securities, partially offset by lower investment income from LPs and common stock. Life & Group core loss of$(22) million versus core income of$41 million in the prior year quarter reflects lower investment income from LPs. Results for the third quarter of 2022 included a favorable impact of$30 million pretax from the annual claim reserve reviews and there was no long term care unlocking event for active life reserves as a result of the gross premium valuation.- Corporate & Other core loss of
$(25) million versus$(21) million in the prior year quarter. - P&C combined ratio of 95.8%, compared with 100.0% in the prior year quarter, including 5.5 points of catastrophe loss impact compared with 9.2 points in the prior year quarter.
- Pretax catastrophe losses of
$114 million , includes$87 million for Hurricane Ian, versus$178 million in the prior year quarter. - Underlying combined ratio of 91.1% was consistent with the prior year quarter. The underlying loss ratio was 59.9% and the expense ratio was 30.8%.
- P&C segments, excluding third party captives, generated gross written premium growth of 9%, or 10% excluding currency fluctuations. Net written premium growth of 8% in the quarter, or 9% excluding currency fluctuations.
- P&C renewal premium change of +8%, with written rate of +5% and exposure change of +3%. Earned rate of +7% for the quarter.
- Book value per share of
$29.88 was impacted by a decrease in AOCI reflecting the effect of higher interest rates on fixed income securities net unrealized gains and losses; book value per share excluding AOCI of$45.16 , a 5% increase from year-end 2021 adjusting for$3.20 of dividends per share. - Board of Directors declares regular quarterly cash dividend of
$0.40 per share.
1
Core income for the quarter was
Our
Our Corporate & Other segment produced a core loss of
|
Results for the Three Months |
Results for the Nine Months |
||||||||||
|
Ended |
Ended |
||||||||||
|
($ millions, except per share data) |
2022 |
2021 |
2022 |
2021 |
|||||||
|
Net income |
$ |
128 |
$ |
256 |
$ |
646 |
$ |
936 |
|||
|
Core income (a) |
213 |
237 |
774 |
841 |
|||||||
|
Net income per diluted share |
$ |
0.47 |
$ |
0.94 |
$ |
2.37 |
$ |
3.43 |
|||
|
Core income per diluted share |
0.78 |
0.87 |
2.84 |
3.08 |
|
|
|
|||
|
Book value per share |
$ |
29.88 |
$ |
47.20 |
|
Book value per share excluding AOCI |
45.16 |
46.02 |
- Management utilizes the core income (loss) financial measure to monitor the Company's operations. Please refer herein to the Reconciliation of GAAP Measures to Non-GAAP Measures section of this press release for further discussion of this non-GAAP measure.
"We are very pleased with our results in the quarter against a backdrop of continued pressure on equity markets and elevated industry catastrophe losses. Core income of
The increased underwriting gain of
We had strong top-line and bottom-line performance in our P&C segments and we remain optimistic about our growth opportunities with continued strong pricing and terms and conditions," said
2
Property & Casualty Operations
|
Results for the Three Months |
Results for the Nine Months |
||||||||||||||
|
Ended |
Ended |
||||||||||||||
|
($ millions) |
2022 |
2021 |
2022 |
2021 |
|||||||||||
|
Gross written premiums ex. 3rd party captives |
$ |
2,430 |
$ |
2,224 |
$ |
7,560 |
$ |
6,790 |
|||||||
|
GWP ex. 3rd party captives change (% year over year) |
9 |
% |
11 |
% |
|||||||||||
|
Net written premiums |
$ |
2,060 |
$ |
1,909 |
$ |
6,379 |
$ |
5,755 |
|||||||
|
NWP change (% year over year) |
8 |
% |
11 |
% |
|||||||||||
|
Net investment income |
$ |
230 |
$ |
271 |
$ |
692 |
$ |
872 |
|||||||
|
Core income |
260 |
217 |
898 |
831 |
|||||||||||
|
Loss ratio excluding catastrophes and development |
59.9 |
% |
60.2 |
% |
60.0 |
% |
59.9 |
% |
|||||||
|
Effect of catastrophe impacts |
5.5 |
9.2 |
2.8 |
6.3 |
|||||||||||
|
Effect of development-related items |
(0.8) |
(0.3) |
(0.9) |
(0.4) |
|||||||||||
|
Loss ratio |
64.6 |
% |
69.1 |
% |
61.9 |
% |
65.8 |
% |
|||||||
|
Expense ratio |
30.8 |
% |
30.7 |
% |
30.8 |
% |
31.3 |
% |
|||||||
|
Combined ratio |
95.8 |
% |
100.0 |
% |
93.0 |
% |
97.4 |
% |
|||||||
|
Combined ratio excluding catastrophes and development |
91.1 |
% |
91.1 |
% |
91.1 |
% |
91.5 |
% |
- The underlying combined ratio was consistent with the prior year quarter. The underlying loss ratio improved 0.3 points and the expense ratio increased 0.1 points as compared to the prior year quarter.
- The combined ratio improved 4.2 points as compared with the prior year quarter. Catastrophe losses were
$114 million , or 5.5 points of the loss ratio in the quarter compared with$178 million , or 9.2 points of the loss ratio, for the prior year quarter. Catastrophe losses in the third quarter of 2022 include$87 million for Hurricane Ian. Favorable net prior period development improved the loss ratio by 0.8 points in the current quarter compared with 0.3 points of improvement in the prior year quarter. - P&C segments, excluding third party captives, generated gross written premium growth of 9%, or 10% excluding currency fluctuations, and net written premium growth of 8%, or 9% excluding currency fluctuations.
3
Business Operating Highlights
Specialty
|
Results for the Three Months |
Results for the Nine Months |
||||||||||||||
|
Ended |
Ended |
||||||||||||||
|
($ millions) |
2022 |
2021 |
2022 |
2021 |
|||||||||||
|
Gross written premiums ex. 3rd party captives |
$ |
958 |
$ |
943 |
$ |
2,816 |
$ |
2,656 |
|||||||
|
GWP ex. 3rd party captives change (% year over year) |
2 |
% |
6 |
% |
|||||||||||
|
Net written premiums |
$ |
840 |
$ |
822 |
$ |
2,443 |
$ |
2,350 |
|||||||
|
NWP change (% year over year) |
2 |
% |
4 |
% |
|||||||||||
|
Core income |
$ |
161 |
$ |
173 |
$ |
485 |
$ |
531 |
|||||||
|
Loss ratio excluding catastrophes and development |
58.4 |
% |
59.1 |
% |
58.6 |
% |
59.1 |
% |
|||||||
|
Effect of catastrophe impacts |
0.2 |
0.4 |
0.1 |
0.4 |
|||||||||||
|
Effect of development-related items |
(1.9) |
(1.8) |
(1.4) |
(1.7) |
|||||||||||
|
Loss ratio |
56.7 |
% |
57.7 |
% |
57.3 |
% |
57.8 |
% |
|||||||
|
Expense ratio |
31.7 |
% |
30.6 |
% |
31.0 |
% |
30.4 |
% |
|||||||
|
Combined ratio |
88.7 |
% |
88.2 |
% |
88.5 |
% |
88.3 |
% |
|||||||
|
Combined ratio excluding catastrophes and development |
90.4 |
% |
89.6 |
% |
89.8 |
% |
89.6 |
% |
- The underlying combined ratio increased 0.8 points as compared with the prior year quarter. The expense ratio increased 1.1 points as compared with the prior year quarter driven by higher underwriting expenses. The underlying loss ratio improved 0.7 points as compared with the prior year quarter.
- The combined ratio increased 0.5 points as compared with the prior year quarter. Favorable net prior period development improved the loss ratio by 1.9 points in the quarter compared with 1.8 points of improvement in the prior year quarter.
- Gross written premiums, excluding third party captives, grew 2% and net written premiums grew 2% for the third quarter of 2022.
4
Commercial
|
Results for the Three Months |
Results for the Nine Months |
||||||||||||||
|
Ended |
Ended |
||||||||||||||
|
($ millions) |
2022 |
2021 |
2022 |
2021 |
|||||||||||
|
Gross written premiums ex. 3rd party captives |
$ |
1,184 |
$ |
1,005 |
$ |
3,711 |
$ |
3,176 |
|||||||
|
GWP ex. 3rd party captives change (% year over year) |
18 |
% |
17 |
% |
|||||||||||
|
Net written premiums |
$ |
962 |
$ |
831 |
$ |
3,097 |
$ |
2,622 |
|||||||
|
NWP change (% year over year) |
16 |
% |
18 |
% |
|||||||||||
|
Core income |
$ |
80 |
$ |
27 |
$ |
350 |
$ |
233 |
|||||||
|
Loss ratio excluding catastrophes and development |
61.5 |
% |
61.5 |
% |
61.5 |
% |
60.8 |
% |
|||||||
|
Effect of catastrophe impacts |
10.0 |
18.6 |
5.0 |
12.6 |
|||||||||||
|
Effect of development-related items |
- |
0.5 |
(0.5) |
0.6 |
|||||||||||
|
Loss ratio |
71.5 |
% |
80.6 |
% |
66.0 |
% |
74.0 |
% |
|||||||
|
Expense ratio |
29.9 |
% |
30.4 |
% |
30.1 |
% |
31.4 |
% |
|||||||
|
Combined ratio |
101.9 |
% |
111.6 |
% |
96.6 |
% |
106.0 |
% |
|||||||
|
Combined ratio excluding catastrophes and development |
91.9 |
% |
92.5 |
% |
92.1 |
% |
92.8 |
% |
- The underlying combined ratio improved 0.6 points as compared with the prior year quarter, reflecting the lowest underlying combined ratio on record. The expense ratio improved 0.5 points driven by net earned premium growth of 15%. The underlying loss ratio was consistent with the prior year quarter.
- The combined ratio improved 9.7 points as compared with the prior year quarter. Catastrophe losses were
$103 million , or 10.0 points of the loss ratio in the third quarter of 2022 compared with$166 million , or 18.6 points of the loss ratio, for the prior year quarter. There was no impact on the loss ratio from net prior year development for the current quarter compared with 0.5 points of unfavorable development increasing the loss ratio in the prior year quarter. - Gross written premiums, excluding third party captives, grew 18% and net written premiums grew 16% for the third quarter of 2022.
5
Attachments
Disclaimer


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