By Scott Vincent

Feb 10 - (The Insurer) - CNA Financial has reported core income per share of $1.25 for the fourth quarter of 2024, ahead of analyst consensus of $1.23.

• Core income per share of $1.25 beats $1.23 consensus

• Combined ratio of 93.1% includes 1.8 pts of cat losses (Q4 2023: 92.1%)

• P&C UW gain of $178mn, down from $186mn in Q4 2023

• FY core income rises to record $1.32bn (FY 2023: $1.28bn)

The group’s P&C business generated a combined ratio of 93.1 percent for the quarter, a deterioration of 1 percentage point year on year.

The deterioration was largely driven by an increase in catastrophe losses, which contributed 1.8 points to the ratio, compared with 1.0 point in Q4 2023. Catastrophe losses totalled $45mn for the quarter, compared with $22mn in the same period of 2023.

On an underlying basis, the combined ratio was consistent with the prior-year quarter at 91.4 percent.

P&C produced core income of $451mn for the quarter, up $17mn compared with the prior-year quarter.

Within its P&C segment, CNA reported gross written premium growth of 9 percent and net written premium growth of 10 percent during the quarter. This excludes the impact of third-party captives business.

P&C GWP totalled $3.23bn, up from $2.97bn in the fourth quarter of 2023. NWP rose to $2.75bn, compared with $2.50bn in the same period of 2023. The segment produced an underwriting gain of $178mn, compared with $186mn in the prior-year quarter.

The insurer reported P&C renewal premium change of 4 percent in the quarter, with written rate up 3 percent and exposure change up 1 percent. The portfolio had a retention rate of 86 percent with new business growth of 8 percent.

At group level, CNA reported net income of $21mn for the quarter, down from $367mn in Q4 2023. This decline was driven by a previously disclosed $290mn after-tax loss from a pension settlement transaction. Core income totalled $342mn, compared with $362mn in Q4 2023.

For the full year, CNA reported group net income of $959mn, down from $1.21bn in 2023, with core income rising to a record $1.32bn (FY2023: $1.28bn).

Full-year P&C core income rose to $1.55bn, up from $1.51bn in 2023. The group’s full-year P&C combined ratio deteriorated by 1.4 points to 94.9 percent on the back of a 3.6 point impact from catastrophe losses, up from 2.6 points the previous year.

Catastrophe losses rose to $358mn in 2024, up from $236mn in 2023.