CNA Financial CNA reported fourth-quarter 2024 core earnings of $1.25 per share, which beat the Zacks Consensus Estimate by 12.6%. The bottom line, however, decreased 6% year over year.

See the Zacks Earnings Calendar to stay ahead of market-making news.

The quarterly results of CNA reflect higher investment income and higher underlying underwriting income, partially offset by increased catastrophe losses.

Behind Fourth-Quarter Headlines

Total operating revenues of CNA Financial were $3.3 billion, up 7.4% year over year due to higher premiums, net investment income and other revenues. The top line beat the Zacks Consensus Estimate by 4.6%.

Net written premiums of Property & Casualty Operations increased 10% year over year to $2.8 billion, driven by retention of 86% and renewal premium change of 4%, with a written rate of 3% and exposure change of 1%. New business grew 8%.

Net investment income rose 5% year over year to $644 million. The increase was driven by higher income from fixed-income securities and limited partnerships. Our estimate for net investment was $596.4 million. The Zacks Consensus Estimate was pegged at $645 million.

Total claims, benefits and expenses increased 20% to $3.7 billion, primarily due to higher insurance claims and policyholders' benefits, amortization of deferred acquisition costs, other insurance-related expenses and other expenses. Our estimate was $3.3 billion.

Catastrophe losses were $45 million, wider than a loss of $22 million in the year-ago quarter. Underwriting income improved 10% year over year to $222 million. Our estimate was $188.5 million.  

The combined ratio deteriorated 100 basis points (bps) year over year to 93.1. The Zacks Consensus Estimate was pegged at 93, while our estimate was 93.1.

Segment Results

Specialty’s net written premiums increased 5% year over year to $934 million. Our estimate was $986 million. The combined ratio deteriorated 300 bps to 93.8. The Zacks Consensus Estimate was pegged at 88.

Commercial’s net written premiums increased 12% year over year to $1.5 billion. Our estimate was $1.4 billion. The combined ratio improved 60 bps to 92.3. The Zacks Consensus Estimate was pegged at 96.

International’s net written premiums increased 13% year over year to $366 million. Our estimate was $334.6 million. The combined ratio deteriorated 180 bps to 94.8. The Zacks Consensus Estimate was pegged at 96.

Life & Group’s net earned premiums were $108 million, down 2.7% year over year. Our estimate was $105.9 million. The core loss was $18 million versus income of $4 million earned in the year-ago quarter.

Corporate & Other’s core loss of $91 million was wider than a loss of $76 million incurred in the year-earlier quarter.

Financial Update

The core return on equity expanded 10 bps year over year to 9.4%. Book value per share was $38.82, an 8% increase from year-end 2023. 

Statutory capital and surplus  was $11.2 billion at 2024 end, up 2% from 2023 end.

Net cash flow provided by operating activities increased 35.2% to $703 million in 2024.

Dividend Update

CNA Financial’s board of directors approved a quarterly dividend of 46 cents per share, an increase of 5% from the earlier payout. The dividend will be paid out on March 13 to shareholders of record as of Feb. 24.

It also approved a special dividend of $2.00 per share.

Zacks Rank

CNA currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

The Travelers Companies TRV reported fourth-quarter 2024 core income of $9.15 per share, which beat the Zacks Consensus Estimate by 39.3% and improved 30.5% year over year. Travelers’ total revenues increased 10.4% from the year-ago quarter to $11.9 billion. The top-line figure beat the Zacks Consensus Estimate by 1%.

Net written premiums increased 7% year over year to a record $10.7 billion, driven by strong growth across all three segments. Our estimate was $10.8 billion. The Zacks Consensus Estimate was pegged at $926 million. TRV witnessed an underwriting gain of $1.4 billion, up 30.5% year over year. The consolidated underlying combined ratio of 84% improved 190 bps year over year.

RLI Corp. RLI reported fourth-quarter 2024 operating earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 14.5%. The bottom line decreased 46.8% from the prior-year quarter. Operating revenues for the reported quarter were $436 million, up 15.3% year over year, driven by higher net premiums earned and net investment income. The top line matched the Zacks Consensus Estimate.

Gross premiums written increased 9% year over year to $473.2 million. This uptick can be attributed to the solid performance of the Casualty segment (up 18.3%). Our estimate was $550 million. Underwriting income of $22.2 million decreased 62.8% year over year. The combined ratio deteriorated 1,170 bps year over year to 94.4%. The Zacks Consensus Estimate for the metric was pegged at 96%, while our estimate was 102%.

W.R. Berkley Corporation’s WRB fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. Operating revenues were $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%.

W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2%. The Zacks Consensus Estimate was 91%.



 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

RLI Corp. (RLI) : Free Stock Analysis Report

The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report

W.R. Berkley Corporation (WRB) : Free Stock Analysis Report

CNA Financial Corporation (CNA) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research