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CNA Financial (CNA) Q4 Earnings, Revenues Top, Dividend Up
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CNA Financial Corporation (CNA - Free Report) reported fourth-quarter 2022 core earnings of $1.01 per share, which beat the Zacks Consensus Estimate by 21.7%. The bottom line increased 4.1% year over year.
The insurer’s results reflected solid top-line growth and strong underwriting profitability.
CNA Financial Corporation Price, Consensus and EPS Surprise
Total operating revenues of CNA Financial were $2.7 billion, up 2.2% year over year due to higher premiums. The top line beat the Zacks Consensus Estimate by 3.6%.
Net written premiums of Property & Casualty Operations improved 5% year over year to $2.3 billion, driven by a retention rate of 86% and renewal premium change of 7%.
Net investment income decreased 9% year over year to $503 million. The decrease was due to a decline in income from limited partnership and common stock investments.
Total claims, benefits and expenses decreased 3% to $2.8 billion, primarily due to Insurance claims and policyholders' benefits.
Catastrophe losses were $76 million, wider than losses of $40 million in the year-ago quarter.
The combined ratio deteriorated 170 basis points (bps) year over year to 93.7.
Core return on equity was 6.9%, down 80 bps. Book value excluding AOCI as of Dec 31 was $45.71 per share, down 0.7% from Dec 31, 2021. Statutory surplus decreased 6.6% from 2021 end to $10.6 billion at quarter end.
Segment Results
Specialty’s net written premiums declined 1% year over year to $860 million. The combined ratio improved 110 bps to 88.8.
Commercial’s net written premiums increased 11% year over year to $1 billion. The combined ratio deteriorated 410 bps to 99.
International’s net written premiums increased 2% year over year to $325 million. The combined ratio improved 590 bps to 94.4.
Life & Group’s net earned premiums were $117 million, down 4.1% year over year. The core loss was $16 million against $6 million earned in the year-ago quarter due to lower net investment income.
Corporate & Other’s core loss of $52 million was narrower than a loss of $94 million in the year-earlier quarter.
Full-Year Highlights
Core earnings of $3.84 per share beat the Zacks Consensus Estimate of $3.67. The bottom line decreased 5.4% year over year.
Total operating revenues of CNA Financial were $10.5 billion, up 1.3% year over year due to higher premiums and net investment income. The top line beat the Zacks Consensus Estimate of $10.4 million.
Net earned premiums increased 6% to $8.7 billion. Combined ratio improved 300 basis points to 93.2.
Core return on equity was 8.4%, contracted 70 basis points.
Dividend Update
CNA Financial’s board of directors approved a quarterly dividend of 42 cents per share, an increase of 5%, to be paid out on Mar 9 to shareholders of Feb 21.
In the reported quarter, CNA paid a special dividend of $1.20 per share.
The Travelers Companies, Inc. (TRV - Free Report) reported fourth-quarter 2022 core income of $3.40 per share, which matched the Zacks Consensus Estimate. The bottom line decreased 35% year over year. Total revenues increased 7.5% from the year-ago quarter to about $9.6 billion, primarily driven by higher premiums and fee income. The top-line figure beat the Zacks Consensus Estimate by 0.2%.
Net written premiums increased 10% year over year to $8.8 billion. The figure was higher than our estimate of $8.6 billion. Catastrophe losses totaled $459 million pre-tax, wider than $36 million pre-tax in the prior-year quarter. Travelers witnessed an underwriting gain of $449 million, down 51.5% year over year. The combined ratio deteriorated 650 bps year over year to 94.5.
The Progressive Corporation’s (PGR - Free Report) fourth-quarter 2022 earnings per share of $1.50 beat the Zacks Consensus Estimate of $1.49 as well as our estimate of $1.34. The bottom line improved 42.9% year over year
Net premiums earned grew 11% to $12.9 billion and beat our estimate of $12.3 billion. The combined ratio — the percentage of premiums paid out as claims and expenses — improved 80 bps from the prior-year quarter’s level to 93.9.
RLI Corp. (RLI - Free Report) reported fourth-quarter 2022 operating earnings of $1.53 per share, beating the Zacks Consensus Estimate by 41.7%. The bottom line improved 26.4% from the prior-year quarter. Operating revenues for the reported quarter were $329.5 million, up 19.4% year over year. The top line beat the Zacks Consensus Estimate by 0.4%.
Gross premiums written increased 14% year over year to $383.8 million. Underwriting income of $54 million increased 8.7%, primarily due to higher profitability at its Property segment. The combined ratio deteriorated 140 bps year over year to 82.1.
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CNA Financial (CNA) Q4 Earnings, Revenues Top, Dividend Up
CNA Financial Corporation (CNA - Free Report) reported fourth-quarter 2022 core earnings of $1.01 per share, which beat the Zacks Consensus Estimate by 21.7%. The bottom line increased 4.1% year over year.
The insurer’s results reflected solid top-line growth and strong underwriting profitability.
CNA Financial Corporation Price, Consensus and EPS Surprise
CNA Financial Corporation price-consensus-eps-surprise-chart | CNA Financial Corporation Quote
Behind Fourth-Quarter Headlines
Total operating revenues of CNA Financial were $2.7 billion, up 2.2% year over year due to higher premiums. The top line beat the Zacks Consensus Estimate by 3.6%.
Net written premiums of Property & Casualty Operations improved 5% year over year to $2.3 billion, driven by a retention rate of 86% and renewal premium change of 7%.
Net investment income decreased 9% year over year to $503 million. The decrease was due to a decline in income from limited partnership and common stock investments.
Total claims, benefits and expenses decreased 3% to $2.8 billion, primarily due to Insurance claims and policyholders' benefits.
Catastrophe losses were $76 million, wider than losses of $40 million in the year-ago quarter.
The combined ratio deteriorated 170 basis points (bps) year over year to 93.7.
Core return on equity was 6.9%, down 80 bps. Book value excluding AOCI as of Dec 31 was $45.71 per share, down 0.7% from Dec 31, 2021. Statutory surplus decreased 6.6% from 2021 end to $10.6 billion at quarter end.
Segment Results
Specialty’s net written premiums declined 1% year over year to $860 million. The combined ratio improved 110 bps to 88.8.
Commercial’s net written premiums increased 11% year over year to $1 billion. The combined ratio deteriorated 410 bps to 99.
International’s net written premiums increased 2% year over year to $325 million. The combined ratio improved 590 bps to 94.4.
Life & Group’s net earned premiums were $117 million, down 4.1% year over year. The core loss was $16 million against $6 million earned in the year-ago quarter due to lower net investment income.
Corporate & Other’s core loss of $52 million was narrower than a loss of $94 million in the year-earlier quarter.
Full-Year Highlights
Core earnings of $3.84 per share beat the Zacks Consensus Estimate of $3.67. The bottom line decreased 5.4% year over year.
Total operating revenues of CNA Financial were $10.5 billion, up 1.3% year over year due to higher premiums and net investment income. The top line beat the Zacks Consensus Estimate of $10.4 million.
Net earned premiums increased 6% to $8.7 billion. Combined ratio improved 300 basis points to 93.2.
Core return on equity was 8.4%, contracted 70 basis points.
Dividend Update
CNA Financial’s board of directors approved a quarterly dividend of 42 cents per share, an increase of 5%, to be paid out on Mar 9 to shareholders of Feb 21.
In the reported quarter, CNA paid a special dividend of $1.20 per share.
Zacks Rank
CNA Financial currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Some Other P&C Insurers
The Travelers Companies, Inc. (TRV - Free Report) reported fourth-quarter 2022 core income of $3.40 per share, which matched the Zacks Consensus Estimate. The bottom line decreased 35% year over year. Total revenues increased 7.5% from the year-ago quarter to about $9.6 billion, primarily driven by higher premiums and fee income. The top-line figure beat the Zacks Consensus Estimate by 0.2%.
Net written premiums increased 10% year over year to $8.8 billion. The figure was higher than our estimate of $8.6 billion. Catastrophe losses totaled $459 million pre-tax, wider than $36 million pre-tax in the prior-year quarter. Travelers witnessed an underwriting gain of $449 million, down 51.5% year over year. The combined ratio deteriorated 650 bps year over year to 94.5.
The Progressive Corporation’s (PGR - Free Report) fourth-quarter 2022 earnings per share of $1.50 beat the Zacks Consensus Estimate of $1.49 as well as our estimate of $1.34. The bottom line improved 42.9% year over year
Net premiums earned grew 11% to $12.9 billion and beat our estimate of $12.3 billion. The combined ratio — the percentage of premiums paid out as claims and expenses — improved 80 bps from the prior-year quarter’s level to 93.9.
RLI Corp. (RLI - Free Report) reported fourth-quarter 2022 operating earnings of $1.53 per share, beating the Zacks Consensus Estimate by 41.7%. The bottom line improved 26.4% from the prior-year quarter. Operating revenues for the reported quarter were $329.5 million, up 19.4% year over year. The top line beat the Zacks Consensus Estimate by 0.4%.
Gross premiums written increased 14% year over year to $383.8 million. Underwriting income of $54 million increased 8.7%, primarily due to higher profitability at its Property segment. The combined ratio deteriorated 140 bps year over year to 82.1.