CNA Financial Corp's stock plummeted 5.17% on Tuesday during the intraday trading session, as the insurance company faces concerns over its elevated loss ratios and exposure to catastrophic events.
Bank of America Securities analyst Joshua Shanker reiterated a Sell rating on CNA Financial, citing the company's high loss ratios and vulnerability to catastrophe losses as key risks. Shanker highlighted CNA Financial's exposure to natural disasters and other catastrophic events as a significant factor that could impact its financial performance.
Furthermore, CNA Financial's full-year 2024 earnings report revealed a 20% year-over-year decline in net income and a lower profit margin of 6.7%, down from 9.1% in the previous year. The company's earnings per share (EPS) of $3.54 also missed analyst expectations by 2.2%, adding to the concerns surrounding its financial performance.