Key Takeaways CNA Financial expects continued premium growth driven by solid retention and new business across segments. The insurer's fixed-income strategy and $11.5B statutory capital base support stable investment performance. CNA Financial's strong dividend history, including a 10-year CAGR of 6.3%, underscores its capital strength. Shares of CNA Financial Corporation (CNA) closed at $47.91 on Tuesday, near its 52-week high of $51.34. This proximity underscores investor confidence and indicates further ...

Core Viewpoint - AM Best has upgraded the Financial Strength Rating (FSR) and Long-Term Issuer Credit Ratings (Long-Term ICRs) for CNA Financial Corporation's property/casualty subsidiaries, reflecting strong balance sheet strength and operating performance [1] Group 1: Ratings Upgrade - The FSR has been upgraded to A+ (Superior) from A (Excellent) for CNA Insurance Companies and Western Surety Group, with Long-Term ICRs upgraded to "aa-" (Superior) from "a+" (Excellent) [1] - The outlook for these ratings has been revised to stable from positive [1] Group 2: Financial Strength and Performance - CNA's ratings reflect very strong balance sheet strength, strong operating performance, and a favorable business profile, supported by its commercial casualty underwriting and investment metrics [1] - The ratings acknowledge the historical financial support from Loews Corporation, which holds a 92% stake in CNA [1] Group 3: Risk Management and Profitability - CNA has demonstrated consistently positive operating performance over the last five years, with significant profitability from commercial insurance operations due to effective underwriting and expense management [1] - The ratings also consider CNA's enterprise risk management (ERM) structure and the support from its parent company [1] Group 4: Western Surety Group Ratings - Western Surety Group's ratings reflect its strongest balance sheet strength and strong operating performance, with a favorable loss reserve position and modest underwriting leverage [1] - WSG maintains a strong market position in the surety bond markets, consistently reporting profitable performance [1] Group 5: Long-Term Issue Credit Ratings - Long-Term IRs for CNA Financial Corporation have been upgraded to "a-" (Excellent) from "bbb+" (Good) for multiple senior unsecured notes totaling $500 million each, with various due dates from 2027 to 2035 [1] - The outlooks for these Long-Term IRs have been revised to stable from positive [1]

Core Insights - CNA Financial reported strong Q3 2025 core earnings of $1.50 per share, exceeding estimates by 20% and reflecting a 39% year-over-year increase [3] - The company's total operating revenues reached $3.4 billion, a 6.3% increase year-over-year, although it slightly missed the consensus estimate [4] - The underwriting income surged nearly threefold to $194 million, driven by lower catastrophe losses [6] Financial Performance - Net written premiums for Property & Casualty Operations rose 3.2% year-over-year to $2.4 billion, supported by a renewal premium change of over 4% [4] - Net investment income increased by 2% year-over-year to $638 million, driven by higher income from fixed income securities [5] - Total claims, benefits, and expenses rose 1.4% to $3.3 billion, primarily due to higher insurance claims and operating expenses [6] Segment Results - Specialty's net written premiums increased by 1% year-over-year to $867 million, while the combined ratio deteriorated by 30 basis points to 93.3 [8] - Commercial's net written premiums grew by 2% year-over-year to $1.2 billion, with an improved combined ratio of 92.7 [8] - International's net written premiums surged 15% year-over-year to $319 million, with a combined ratio improvement to 91.8 [9] Financial Update - The core return on equity expanded by 380 basis points year-over-year to 13.2%, and book value per share increased by 8% to $46.30 [11] - Statutory capital and surplus for the Combined Continental Casualty Companies rose by 3.3% to $11.5 billion [11] - Net cash flow from operating activities decreased by 3.7% to $720 million [11] Dividend Update - CNA Financial's board approved a quarterly dividend of 46 cents per share, payable on December 4 to shareholders as of November 17 [12] Outlook - Estimates for CNA Financial have trended upward, with a consensus estimate shift of 11.11% [13] - The company holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [15] Industry Comparison - CNA Financial operates within the Zacks Insurance - Property and Casualty industry, where Berkshire Hathaway B has gained 3.9% over the past month [16] - Berkshire Hathaway B reported revenues of $94.97 billion, reflecting a year-over-year change of +2.1% [17]

Core Insights - CNA Financial is experiencing solid improvement in earnings estimates, which may lead to continued stock price momentum [1][2] - Analysts show growing optimism regarding CNA Financial's earnings prospects, correlating with potential stock price increases [2][3] Current-Quarter Estimate Revisions - The expected earnings for the current quarter are $1.10 per share, reflecting a year-over-year decrease of 12.0% [5] - Over the last 30 days, the Zacks Consensus Estimate for CNA Financial has increased by 11.11%, with one estimate moving higher and no negative revisions [5] Current-Year Estimate Revisions - The full-year earnings estimate stands at $4.86 per share, indicating a change of +0.6% from the previous year [6] - The consensus estimate has increased by 6% due to two estimates moving higher and no negative revisions [7] Zacks Rank and Performance - CNA Financial holds a Zacks Rank 2 (Buy), indicating promising estimate revisions that may lead to effective investment decisions [8] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [8] Bottom Line - Strong estimate revisions have led to a 6.5% increase in CNA Financial's stock over the past four weeks, suggesting potential for further upside [9]

Core Insights - CNA Financial Corporation (CNA) shares are trading at a discount compared to the Zacks Property and Casualty Insurance industry, with a forward price-to-book value of 1.11X, lower than the industry average of 1.49X, the Finance sector's 4.26X, and the Zacks S&P 500 Composite's 8.19X [2] - The company has a market capitalization of $12.51 billion and an average trading volume of 0.4 million shares over the last three months [3] - CNA Financial's shares closed at $46.23 on Nov. 20, near its 52-week high of $51.42, indicating strong investor confidence and upward momentum as it trades above the 50-day simple moving average of $45.83 [4] - The Zacks Consensus Estimate for CNA Financial's 2025 revenues is $13.53 billion, reflecting a year-over-year improvement of 6.2%, with a 2% increase projected for 2026 [8] Financial Performance - CNA Financial has a trailing 12-month return on equity (ROE) of 12.7%, outperforming the industry average of 8% [12] - The company exited the third quarter with statutory capital and surplus of $11.5 billion, maintaining a conservative capital structure and liquidity through cash and short-term investments [15] - CNA Financial's dividend history shows a 10-year compound annual growth rate (CAGR) of 6.3%, with a current dividend yield of 3.9%, significantly higher than the industry average of 0.2% [16] Growth Projections - Continued premium growth is expected due to solid retention, favorable renewal premium changes, and new business across Specialty, Commercial, and International segments [13] - Analysts have adjusted estimates for CNA Financial, with the consensus for 2025 and 2026 moving up by 7.5% and 0.4%, respectively, over the past 60 days [9] Investment Sentiment - The company has a Value Score of A and a VGM Score of B, indicating attractive value and growth potential [19] - The combination of solid growth projections, attractive valuations, and optimistic analyst sentiment positions CNA Financial as a potential investment opportunity [18]

Core Insights - Chubb has appointed Bill Hazelton as the chief operating officer (COO) for North America Field Operations, effective December 1 [2] - Hazelton will manage the delivery of Chubb's insurance products and services to distribution partners and oversee daily operations in North America [2] Company Overview - Bill Hazelton brings over 30 years of experience in underwriting, claims, and distribution partner management [3] - Prior to this role, Hazelton was the executive vice president and president of North America Insurance for Everest Group, Ltd. [3] - He has a significant history with Chubb, having spent more than 18 years in various leadership roles [3] Industry Context - The appointment of Hazelton is part of Chubb's strategy to enhance its operational efficiency and service delivery in the North American market [2][3] - The insurance industry is seeing a trend of experienced leaders transitioning between major firms, as evidenced by the recent appointment of Gary Haase as EVP and CEO of Legacy Operations at Everest Group [4][5]

Group 1 - Everest Group has appointed Gary Haase as Executive Vice President and Chief Executive Officer of Legacy Operations, effective December 1st, 2025 [1] - Haase will report to Jim Williamson and will be responsible for leading the strategy and execution of Everest's legacy insurance portfolios, focusing on capital efficiency and long-term value [2] - This appointment follows the sale of Everest's commercial retail business' renewal rights to AIG, indicating a strategic refocus on core global businesses [2] Group 2 - Haase brings over two decades of experience in insurance, reinsurance, and financial services, having recently served as Executive Advisor to private equity and technology firms [3] - His previous roles include EVP and COO of CNA Financial Corporation, where he led enterprise technology and operations [3][4] - Haase's extensive background includes over a decade at Catalina Holdings, where he was Group COO, managing global run-off and operational strategies [4] Group 3 - Jim Williamson highlighted Haase's diverse experience in actuarial, claims, M&A, and technology transformation as key qualifications for his new role [5] - Haase expressed enthusiasm for leveraging Everest's global reach and disciplined underwriting platform to optimize the legacy business and support long-term strategy [5]

Core Insights - The article emphasizes the importance of value investing and highlights specific stocks that are currently undervalued in the market [2][9] Company Analysis: CNA Financial - CNA Financial (CNA) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4] - The Forward P/E ratio for CNA is 9.7, significantly lower than the industry average of 27.26, with a historical range between 9.52 and 11.18 over the past year [4] - CNA's PEG ratio stands at 3.90, which is comparable to the industry average of 3.99, with a historical range from 3.19 to 9.20 [5] - The P/B ratio for CNA is 1.16, which is favorable compared to the industry average of 1.43, with a historical range from 1.10 to 1.38 [6] - CNA's P/S ratio is 0.84, lower than the industry average of 1.29, suggesting strong sales performance relative to its price [7] Company Analysis: Mercury General - Mercury General (MCY) is rated as a Zacks Rank 1 (Strong Buy) with a Value grade of A, indicating strong investment potential [8] - The P/B ratio for Mercury General is 2.24, which is higher than the industry average of 1.43, with a historical range from 1.34 to 2.35 [8] Conclusion - Both CNA Financial and Mercury General are identified as strong value stocks, likely undervalued in the current market, supported by their earnings outlook and valuation metrics [9]

Core Viewpoint - The investment thesis regarding CNA Financial emphasizes the importance of loyalty as a key factor for investors [1]. Group 1 - CNA Financial is perceived as a company where investors are rewarded for their loyalty [1]. - The analysis of CNA Financial is conducted by professionals with extensive experience in the insurance and reinsurance sectors [2]. - The Cash Flow Club, which includes insights on CNA Financial, focuses on company cash flows and access to capital, targeting a yield of over 6% [2].

Core Insights - CNA Financial Corporation reported third-quarter 2025 core earnings of $1.50 per share, exceeding the Zacks Consensus Estimate by 20% and reflecting a 39% year-over-year increase [1][10] - The quarterly results were driven by higher income from fixed income securities, increased renewal premium change, and higher underwriting income due to lower catastrophe losses, although partially offset by rising expenses [1] Financial Performance - Total operating revenues for CNA Financial reached $3.4 billion, marking a 6.3% year-over-year increase, primarily due to higher premiums and net investment income, though it slightly missed the Zacks Consensus Estimate by 0.05% [2][10] - Net written premiums in Property & Casualty Operations rose 3.2% year over year to $2.4 billion, supported by a renewal premium change exceeding 4% and a written rate above 3% [2] Investment Income - Net investment income increased by 2% year over year to $638 million, attributed to higher income from fixed income securities and a larger invested asset base, although it fell short of the Zacks Consensus Estimate of $690.5 million [3] Claims and Expenses - Total claims, benefits, and expenses rose 1.4% to $3.3 billion, driven by higher insurance claims and policyholders' benefits, with catastrophe losses recorded at $41 million pretax, significantly lower than the $143 million loss in the previous year [4] - Underwriting income surged nearly threefold year over year to $194 million, outperforming the estimate of $83.5 million [4] Combined Ratio - The Property & Casualty combined ratio improved by 440 basis points year over year to 92.8, better than the estimate of 97.2 [5][10] Segment Results - Specialty's net written premiums increased by 1% year over year to $867 million, while the combined ratio deteriorated by 30 basis points to 93.3 [6] - Commercial's net written premiums rose by 2% year over year to $1.2 billion, with the combined ratio improving by 750 basis points to 92.7 [6] - International's net written premiums increased by 15% year over year to $319 million, with the combined ratio improving by 430 basis points to 91.8 [7] Core Return on Equity and Book Value - Core return on equity expanded by 380 basis points year over year to 13.2%, and book value, excluding AOCI, increased by 8% to $46.30 per share as of September 30, 2025 [11] Dividend Declaration - CNA Financial's board approved a quarterly dividend of 46 cents per share, scheduled for payment on December 4 to shareholders as of November 17 [12]