CNA FINANCIAL ANNOUNCES SECOND QUARTER 2022 NET INCOME OF $0.75 PER SHARE AND CORE INCOME OF $0.90 PER SHARE
- Net income of $205 million, which includes $40 million of net investment losses, versus net income of $368 million, which includes $27 million of net investment gains in the prior year quarter. Core income of $245 million versus $341 million in the prior year quarter reflects lower investment income from LPs and common stock, partially offset by higher underwriting income and higher income from fixed income securities.
- P&C core income of $317 million versus $351 million in the prior year quarter reflects lower investment income from LPs and common stock, partially offset by pretax underwriting income of $185 million, up 64%, and higher income from fixed income securities.
- Life & Group core income of $6 million versus $43 million in the prior year quarter reflects lower investment income from LPs.
- Corporate & Other core loss of $(78) million versus core loss of $(53) million in the prior year quarter, includes a $51 million after-tax charge related to unfavorable prior period development largely associated with legacy mass tort abuse claims, including the recent Diocese of Rochester proposed settlement.
- Net investment income of $432 million pretax includes a $16 million increase from fixed income securities to $451 million, offset by a $171 million decline from LPs and common stock.
- The P&C combined ratio was 91.0%, the lowest in over five years, compared with 94.0% in the prior year
quarter, including 1.8 points of catastrophe loss impact compared with 2.8 points in the prior year quarter.
- The underlying combined ratio was 90.8%,the lowest on record, compared with 91.4% in the prior year quarter. The underlying loss ratio was 60.0% and the expense ratio was 30.5%.
- P&C segments, excluding third party captives, generated gross written premium growth of 17%. Net written premium growth was 20% in the quarter. Excluding the one-time catch-up related to the addition of a property quota share reinsurance treaty in the prior period, net written premiums grew 13%.
- P&C written rate of +6% and earned rate of +8% for the quarter.
- Book value per share excluding AOCI of $45.06, a 4% increase from year-end 2021 adjusting for $2.80 of
dividends per share; book value per share of $35.06 was also impacted by a decrease in AOCI reflecting
the effect of higher interest rates on fixed income net unrealized gains and losses.
- Board of Directors declares regular quarterly cash dividend of $0.40 per share.
CHICAGO, August 1, 2022 --- CNA Financial Corporation (NYSE: CNA) today announced second quarter 2022 net income of $205 million, or $0.75 per share, versus $368 million, or $1.35 per share, in the prior year quarter. Core income for the quarter was $245 million, or $0.90 per share, versus $341 million, or $1.25 per share, in the prior year quarter. Net investment losses for the quarter were $40 million, which were primarily
driven by mark to market losses on non-redeemable preferred stock, compared to net investment gains of $27 million in the prior year quarter.
Our Property & Casualty segments produced core income of $317 million for the second quarter of 2022, a
decrease of $34 million compared to the prior year quarter driven by lower investment income from LPs and
common stock, partially offset by much improved underwriting results which increased $72 million and higher
income from fixed income securities. Property & Casualty segments, excluding third party captives,
generated gross written premium growth of 17% and net written premium growth of 20% (13% adjusting for
the impact of a one-time ceded premium catch-up related to the addition of a property quota share
reinsurance treaty in the prior period), driven by strong retention of 85% and new business growth of 27%.
Our Life & Group and Corporate & Other segments produced core income (loss) for the second quarter of
2022 of $6 million and $(78) million, respectively. Corporate & Other includes a $51 million after-tax charge
related to unfavorable prior period development largely associated with legacy mass tort abuse claims,
including the recent Diocese of Rochester proposed settlement.
CNA Financial declared a quarterly dividend of $0.40 per share, payable September 1, 2022 to stockholders
of record on August 15, 2022.
Read the full press release here.