CNA(CNA)

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CNA vs. CINF: Which Stock Is the Better Value Option?
ZACKS· 2025-09-24 16:41
Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of CNA Financial (CNA) and Cincinnati Financial (CINF) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zac ...
CNA Stock Lost 1% YTD, Trading at a Discount to Industry: Buy The Dip?
ZACKS· 2025-09-12 17:11
Core Insights - CNA Financial's shares have declined by 1.4% year to date, underperforming its industry and the broader market, which saw growth rates of 8.8%, 13.8%, and 12.8% respectively [1] - The company has a market capitalization of $12.9 billion and an average trading volume of 0.5 million shares over the last three months [1] Valuation and Market Position - CNA Financial shares are trading at a forward price-to-book value of 1.22X, which is lower than the industry average of 1.54X, indicating a discount [3] - The company has a Value Score of A, suggesting it is an attractive investment compared to peers [3] Financial Projections - The Zacks Consensus Estimate for 2025 revenues is $13.5 billion, reflecting a year-over-year growth of 6.3% [5] - Current-year earnings are estimated at $4.49 per share, down 7% from the previous year, while 2026 earnings per share and revenues are projected to increase by 6.2% and 2.8% respectively [5] Analyst Sentiment - Analyst estimates for 2025 and 2026 earnings have increased by 2.3% and 0.2% respectively in the past 30 days [6] Business Performance - CNA Financial has increased its gross premiums through retention, competitive pricing, and new business, leading to improved underwriting and healthier margins [8][12] - The company has raised its dividend five times in five years, maintaining a payout ratio of 40% [8][16] Investment Strategy - CNA's investment strategy focuses on a disciplined fixed-income approach, with expected earnings from fixed-income and other sources projected at $565 million for Q3 and around $2.25 billion for 2025, a 3% increase from 2024 [14] - The company emphasizes shareholder value creation through consistent capital returns and a dividend yield that surpasses the industry average [16] Conclusion - With disciplined underwriting, strong policy retention, and steady premium growth, CNA Financial is well-positioned for organic growth and financial resilience, supported by a focused investment approach [17] - The current discount valuation and a Zacks Rank 2 (Buy) suggest it may be a favorable addition to investment portfolios [17]
Why Is CNA Financial (CNA) Up 5.2% Since Last Earnings Report?
ZACKS· 2025-09-03 16:31
Core Viewpoint - CNA Financial reported strong second-quarter earnings, beating estimates and showing year-over-year growth in core earnings and revenues, indicating positive momentum for the company [2][3][4]. Financial Performance - Core earnings for Q2 2025 were $1.23 per share, exceeding the Zacks Consensus Estimate by 30.9% and reflecting a 3.4% increase year-over-year [2]. - Total operating revenues reached $3.4 billion, a 7.7% increase from the previous year, driven by higher premiums and net investment income [3]. - Net investment income rose 7.1% year-over-year to $662 million, supported by a larger invested asset base and favorable returns [4]. Claims and Expenses - Total claims, benefits, and expenses increased 7.1% year-over-year to $3.3 billion, primarily due to higher insurance claims [5]. - Underwriting income climbed 20.9% year-over-year to $150 million, with the combined ratio improving to 94.8 [6]. Segment Results - Specialty's net written premiums increased 4.1% year-over-year to $892 million, while Commercial's net written premiums rose 7.2% to $1.6 billion [7]. - International's net written premiums remained flat at $391 million, and Life & Group's net earned premiums decreased by 2.8% to $106 million [8]. Financial Update - The core return on equity expanded by 40 basis points to 11%, while book value per share decreased by 2% to $45.25 [9]. - Statutory capital and surplus increased by 0.3% to $11.2 billion at the end of Q2 [9]. Dividend Update - The board of directors approved a quarterly dividend of 46 cents per share, payable on September 4, 2025 [11]. Market Outlook - Estimates for CNA Financial have been revised upward by 5.91% in the past month, indicating positive investor sentiment [12]. - The stock holds a Zacks Rank 2 (Buy), suggesting expectations for above-average returns in the coming months [14]. Industry Comparison - CNA Financial operates within the Zacks Insurance - Property and Casualty industry, where competitor W.R. Berkley reported revenues of $3.64 billion, reflecting a year-over-year increase of 7.9% [15].
Why CNA Financial (CNA) Might be Well Poised for a Surge
ZACKS· 2025-08-20 17:21
Group 1 - CNA Financial shows a noticeable improvement in earnings outlook, making it an attractive investment option [1] - Analysts are raising earnings estimates for CNA Financial, indicating growing optimism about the company's earnings prospects [2][3] - The Zacks Rank system, which has a strong track record of outperformance, supports the positive sentiment around CNA Financial [3] Group 2 - The current-quarter earnings estimate for CNA Financial is projected at $1.17 per share, reflecting an 8.3% year-over-year increase, with a 5.91% rise in consensus estimates over the last 30 days [5] - For the full year, the earnings estimate is $4.49 per share, which is a 7.0% decrease from the previous year, but recent revisions have been positive [6] - The favorable estimate revisions have led to a Zacks Rank of 2 (Buy) for CNA Financial, indicating strong potential for outperformance [7] Group 3 - CNA Financial's stock has increased by 8.6% over the past four weeks, suggesting further upside potential [8]
CNA or CINF: Which Is the Better Value Stock Right Now?
ZACKS· 2025-08-19 16:41
Core Viewpoint - Investors are evaluating CNA Financial and Cincinnati Financial to determine which stock presents a better value opportunity for investment [1] Valuation Metrics - Both CNA Financial and Cincinnati Financial currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3] - CNA has a forward P/E ratio of 10.77, significantly lower than Cincinnati Financial's forward P/E of 25.84 [5] - The PEG ratio for CNA is 4.32, while Cincinnati Financial's PEG ratio is higher at 7.43, suggesting that CNA may be more attractive based on expected earnings growth [5] - CNA's P/B ratio stands at 1.2, compared to Cincinnati Financial's P/B ratio of 1.64, further indicating a more favorable valuation for CNA [6] - Based on these valuation metrics, CNA earns a Value grade of A, while Cincinnati Financial receives a Value grade of C [6] Investment Outlook - Both companies exhibit solid earnings outlooks, but CNA is identified as the superior value option based on the discussed valuation figures [7]
Is CNA Financial (CNA) a Great Value Stock Right Now?
ZACKS· 2025-08-19 14:42
Core Insights - The article emphasizes the importance of value investing, which focuses on identifying undervalued companies in the market [2] - Zacks has developed a Style Scores system to help investors find stocks with specific traits, particularly in the Value category [3] - CNA Financial is highlighted as a strong value stock, currently holding a Zacks Rank 2 (Buy) and an A grade in the Value category [4][7] Valuation Metrics - CNA Financial has a P/E ratio of 10.34, significantly lower than the industry average P/E of 26.83 [4] - The stock's P/B ratio is 1.21, compared to the industry's average P/B of 1.50, indicating it is attractively valued [5] - CNA's P/S ratio stands at 0.87, which is lower than the industry's average P/S of 1.27, suggesting further undervaluation [6]
CNA Announces Strategic Leadership Appointments
Prnewswire· 2025-08-19 14:00
Core Insights - CNA Financial Corporation has announced strategic leadership appointments aimed at enhancing underwriting capabilities across key business segments [1] Leadership Appointments - David Haas has been appointed President Global Specialty, overseeing Financial Lines, Healthcare, Affinity, and Warranty, bringing strong leadership and market presence [2] - Michael Nardiello has been appointed President Global Property & Casualty, expanding his role to lead Casualty globally while continuing to oversee Property and Marine, with a focus on profitable growth and underwriting performance [3] - Song Kim has been appointed President Global Commercial Industry Segments, now including Construction in his responsibilities, which will strengthen specialization and support for the market [4] Company Commitment - The appointments reflect CNA's commitment to specialization and its strong position to drive sustained, profitable growth, as stated by Douglas M. Worman, President and CEO of CNA [5] Company Overview - CNA is one of the largest U.S. commercial property and casualty insurance companies, with over 125 years of experience providing a wide range of insurance products and services in the U.S., Canada, and Europe [6]
CNA Financial Trades Above 50-Day SMA: How to Play the Stock?
ZACKS· 2025-08-13 18:10
Core Viewpoint - CNA Financial Corporation is experiencing a short-term bullish trend as its shares trade above key moving averages, despite a recent decline from its 52-week high [1][5]. Group 1: Price Performance - CNA Financial shares have decreased by 1% over the past year, underperforming compared to its industry and the broader market, which saw growth rates of 7.9%, 19%, and 18.1% respectively [2]. - The current market capitalization of CNA Financial is $12.9 billion, with an average trading volume of 0.5 million shares over the last three months [2]. Group 2: Valuation Metrics - CNA Financial shares are trading at a forward price-to-book value of 1.21X, which is lower than the industry average of 1.42X, indicating a discount compared to peers [4]. - The company has a Value Score of B, suggesting it is relatively affordable within the property and casualty insurance sector [4]. Group 3: Revenue and Earnings Projections - The Zacks Consensus Estimate for CNA's 2025 revenues is $13.4 billion, reflecting a year-over-year growth of 5.4% [5]. - The current-year earnings estimate is $4.39 per share, with projections for 2026 indicating an increase of 8.4% in earnings per share and 3.5% in revenues compared to 2025 [6][7]. Group 4: Investment Income and Challenges - Net investment income for CNA rose by 7.1% to $662 million, driven by gains in fixed-income and equity investments [5][13]. - The company faces challenges from rising expenses and catastrophe risks, which could impact profitability [5][15]. Group 5: Growth and Underwriting Performance - CNA Financial has consistently reported growth in gross premiums written across all segments, supported by a strong product portfolio and improved retention [11]. - The combined ratio of its property and casualty business has shown substantial improvement, indicating stronger underwriting profitability [11]. Group 6: Market Outlook - The average price target for CNA shares is $49, suggesting a potential upside of 3.5% from the last closing price [8]. - The company has shown resilience in premium growth and investment results, but ongoing exposure to catastrophe losses and rising claims expenses remain concerns [16].
CNA Financial Q2 Earnings Beat Estimates, Revenues Increase Y/Y
ZACKS· 2025-08-05 17:31
Core Insights - CNA Financial Corporation reported second-quarter 2025 core earnings of $1.23 per share, exceeding the Zacks Consensus Estimate by 30.9% and reflecting a year-over-year increase of 3.4% [1][10] - Total operating revenues reached $3.4 billion, marking a 7.7% year-over-year growth, driven by higher premiums, net investment income, and other revenues, surpassing the Zacks Consensus Estimate by 3.5% [2][10] - Underwriting income rose significantly by 20.9% year over year to $150 million, with an improved combined ratio of 94.8, which is better than the Zacks Consensus Estimate of 93.6 [5][10] Revenue and Premiums - Net written premiums for Property & Casualty Operations increased by 6.4% year over year to $2.8 billion, exceeding the estimate of $2.7 billion [2] - Specialty's net written premiums grew by 4.1% year over year to $892 million, surpassing the estimate of $867.7 million [6] - Commercial's net written premiums increased by 7.2% year over year to $1.6 billion, slightly missing the estimate [6] Investment Income - Net investment income rose by 7.1% year over year to $662 million, driven by higher income from fixed income securities and favorable returns from limited partnerships and common stocks [3] - The estimate for net investment income was $686.6 million, indicating a slight miss against expectations [3] Claims and Expenses - Total claims, benefits, and expenses increased by 7.1% year over year to $3.3 billion, primarily due to higher insurance claims and policyholders' benefits [4] - Catastrophe losses were reported at $62 million, which is an improvement from a loss of $82 million in the same quarter last year [4] Financial Metrics - The core return on equity expanded by 40 basis points to 11% [9] - Book value, excluding AOCI, as of June 30 was $45.25 per share, down 2% from the end of 2024 [9] - Statutory capital and surplus for the Combined Continental Casualty Companies increased by 0.3% from the end of 2024 to $11.2 billion [9] Dividend Information - CNA Financial's board approved a quarterly dividend of 46 cents per share, payable on September 4, 2025, to stockholders of record on August 18, 2025 [12]
CNA Financial: A Conservative Insurer Facing A Market That Wants Growth
Seeking Alpha· 2025-08-05 15:01
Group 1 - CNA Financial Corporation is a well-established insurer with over 100 years of history, known for its careful underwriting, strong financials, and consistent dividends [1] - Despite its solid performance, CNA Financial's stock price has been lagging, indicating a potential disconnect between the company's strengths and market perception [1] - The analysis focuses on small- to mid-cap companies, but occasionally includes large-cap firms to provide a broader market perspective [1]