CNA Financial (CNA) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this insurance holding company, should get reflected in its stock price. After all, empirical research shows a strong correlation between ...

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]

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].

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]

Financial Highlights - Net income decreased by 6% from $317 million to $299 million, while core income increased by 3% from $326 million to $335 million[6] - Net investment income increased by 7% to $662 million pretax, driven by increases in both fixed income securities and limited partnerships/common stock[6] - The book value per share excluding AOCI increased by 4% from year-end 2024, adjusting for $2.92 of dividends per share paid[6] Property & Casualty Operations - The P&C combined ratio improved slightly from 948% to 941%, with catastrophe losses impacting 24 points compared to 35 points in the prior year quarter[6] - P&C segments, excluding third-party captives, experienced gross written premium growth of 5% and net written premium growth of 6%[6] - The underlying combined ratio for P&C was 917%, compared to 916% in the prior year quarter[6] Segment Performance - Specialty segment GWP ex third party captives increased by 3% from $984 million to $1013 million[10] - Commercial segment GWP ex third party captives increased by 6% from $1802 million to $1903 million[12] - International segment NWP increased by 9% from $359 million to $391 million[14] Investment Portfolio and Capital - Fixed income securities net investment income increased from $520 million to $544 million[19] - Limited Partnership & Common Stock net investment income increased from $78 million to $100 million[22] - The company maintains a high-quality investment portfolio, with 88% of total invested assets in fixed income securities and an average credit rating of "A"[30]

Company Performance - CNA Financial reported quarterly earnings of $1.23 per share, exceeding the Zacks Consensus Estimate of $0.94 per share, and showing an increase from $1.19 per share a year ago, representing an earnings surprise of +30.85% [1] - The company posted revenues of $3.37 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.47%, compared to revenues of $3.13 billion in the same quarter last year [2] - Over the last four quarters, CNA Financial has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - CNA Financial shares have underperformed the market, losing about 9.3% since the beginning of the year, while the S&P 500 has gained 6.1% [3] - The current consensus EPS estimate for the coming quarter is $1.10 on revenues of $3.44 billion, and for the current fiscal year, it is $4.19 on revenues of $13.43 billion [7] - The estimate revisions trend for CNA Financial was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Insurance - Property and Casualty industry, to which CNA Financial belongs, is currently in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Q2 2025 - Loews Corporation's net income was $391 million, or $1.87 per share, compared to $369 million, or $1.67 per share in Q2 2024[14] - The company repurchased 3.0 million shares at a cost of $260 million since March 31, 2025[14] - Book value per share increased to $84.42 as of June 30, 2025, from $79.49 as of December 31, 2024[14] - Dividends from subsidiaries totaled $189 million in Q2 2025[14] - The parent company held $3.4 billion in cash and investments as of June 30, 2025[8, 14] Subsidiary Performance - Q2 2025 - CNA's net income attributable to Loews was $274 million, down from $291 million year-over-year[15, 27] - Boardwalk's net income attributable to Loews increased to $88 million from $70 million year-over-year[15, 30] - Loews Hotels' net income attributable to Loews decreased to $28 million from $35 million year-over-year[15, 32] CNA Financial Highlights - CNA's net written premiums increased to $2.846 billion in Q2 2025 from $2.674 billion in Q2 2024[27] - CNA's underlying combined ratio was 91.7% in Q2 2025, compared to 91.6% in Q2 2024[27] Boardwalk Pipeline Highlights - Boardwalk's operating revenue increased to $534 million in Q2 2025 from $477 million in Q2 2024[30] - Boardwalk's EBITDA was $274 million in Q2 2025, compared to $240 million in Q2 2024[30] Loews Hotels & Co Highlights - Loews Hotels & Co's revenue increased to $254 million in Q2 2025 from $251 million in Q2 2024[32] - Loews Hotels & Co's Adjusted EBITDA was $109 million in Q2 2025, compared to $98 million in Q2 2024[32]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number 1-5823 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE CNA FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 36-6169860 (I.R.S. Employer (State ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) CNA Financial reported mixed Q2 2025 results with decreased net income but increased core income, driven by strong P&C performance and higher net investment income [Overall Performance Summary](index=1&type=section&id=Overall%20Performance%20Summary) In the second quarter of 2025, CNA Financial reported a net income of $299 million ($1.10 per share), a decrease from $317 million ($1.17 per share) in the prior year quarter. However, core income, a key non-GAAP metric, rose by 3% to $335 million ($1.23 per share), driven by strong performance in the Property & Casualty segment and higher net investment income Q2 & H1 2025 Key Financial Results | ($ millions, except per share data) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net income** | $299 | $317 | $573 | $655 | | **Core income** | $335 | $326 | $616 | $681 | | **Net income per diluted share** | $1.10 | $1.17 | $2.10 | $2.40 | | **Core income per diluted share** | $1.23 | $1.19 | $2.26 | $2.50 | - The CEO highlighted the strong performance, noting the ninth consecutive quarter with an underlying underwriting gain of **$200 million** or more and a **7%** increase in net investment income[8](index=8&type=chunk)[11](index=11&type=chunk) [Key Performance Indicators](index=1&type=section&id=Key%20Performance%20Indicators) The company's performance was characterized by strong P&C core income of $448 million, offset by a significant core loss of $114 million in the Corporate & Other segment due to legacy mass tort charges. The P&C combined ratio improved to 94.1%, aided by lower catastrophe losses. The company also saw 6% growth in net written premiums and declared a quarterly dividend of $0.46 per share Q2 2025 Core Income by Segment | Segment | Q2 2025 Core Income (Loss) | Q2 2024 Core Income (Loss) | | :--- | :--- | :--- | | **P&C** | $448 million | $380 million | | **Life & Group** | $1 million | ($1 million) | | **Corporate & Other** | ($114 million) | ($53 million) | P&C Underwriting and Premium Metrics (Q2 2025) | Metric | Value | Prior Year Value | | :--- | :--- | :--- | | **Combined Ratio** | 94.1% | 94.8% | | **Underlying Combined Ratio** | 91.7% | 91.6% | | **Catastrophe Loss Impact** | 2.4 pts | 3.5 pts | | **Gross Written Premium Growth** | 5% | N/A | | **Net Written Premium Growth** | 6% | N/A | Shareholder Value Metrics (as of Q2 2025) | Metric | Value | Change from YE 2024 | | :--- | :--- | :--- | | **Book value per share** | $39.39 | Up from $38.82 | | **Book value per share (ex-AOCI)** | $45.25 | 4% increase (adj. for dividends) | | **Quarterly Dividend** | $0.46/share | N/A | [Business Segment Performance](index=3&type=section&id=Business%20Segment%20Performance) CNA's business segments showed varied performance, with strong P&C core income and premium growth, offset by a significant loss in Corporate & Other [Property & Casualty (P&C) Operations](index=3&type=section&id=Property%20%26%20Casualty%20(P%26C)%20Operations) The Property & Casualty (P&C) Operations delivered a strong quarter with core income rising to $448 million from $380 million in the prior year. The combined ratio improved by 0.7 points to 94.1%, primarily due to lower catastrophe losses. Net written premiums grew by 6%, reflecting healthy business expansion P&C Operations Highlights (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Core income** | $448M | $380M | | **Net written premiums** | $2,846M | $2,674M | | **Underwriting gain** | $150M | $124M | | **Combined ratio** | 94.1% | 94.8% | | **Underlying combined ratio** | 91.7% | 91.6% | | **Expense ratio** | 29.8% | 30.7% | - The improvement in the combined ratio was driven by catastrophe losses falling to **$62 million** (**2.4 points**) from **$82 million** (**3.5 points**) in the prior year quarter[14](index=14&type=chunk) - The expense ratio improved by **0.9 points**, attributed to an **8% growth** in net earned premiums and a favorable acquisition ratio[14](index=14&type=chunk) [Specialty](index=4&type=section&id=Specialty) The Specialty segment reported a 4% growth in net written premiums. However, the underwriting gain decreased slightly to $53 million, and the combined ratio increased by 0.9 points to 93.6%, driven by a higher underlying loss ratio and the absence of prior year favorable development Specialty Segment (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net written premiums** | $892M | $857M | | **Underwriting gain** | $53M | $60M | | **Combined ratio** | 93.6% | 92.7% | | **Underlying loss ratio** | 60.1% | 59.6% | - The underlying combined ratio increased by **0.5 points** compared to the prior year quarter, reflecting a **0.5 point** increase in the underlying loss ratio[15](index=15&type=chunk) [Commercial](index=5&type=section&id=Commercial) The Commercial segment demonstrated strong performance with a 7% increase in net written premiums and a significant improvement in its combined ratio, which fell 2.2 points to 94.8%. This was largely due to lower catastrophe losses and a 1.3 point improvement in the expense ratio, despite elevated loss trends in commercial auto Commercial Segment (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net written premiums** | $1,563M | $1,458M | | **Underwriting gain** | $74M | $39M | | **Combined ratio** | 94.8% | 97.0% | | **Expense ratio** | 27.2% | 28.5% | - Catastrophe losses were significantly lower at **$57 million** (**4.2 points** of the loss ratio) compared to **$76 million** (**6.1 points**) in the prior year quarter, driving the combined ratio improvement[18](index=18&type=chunk) - The underlying combined ratio improved by **0.4 points**, as a **1.3 point** improvement in the expense ratio more than offset a **0.9 point** increase in the underlying loss ratio from commercial auto trends[17](index=17&type=chunk) [International](index=6&type=section&id=International) The International segment achieved 9% growth in net written premiums (7% excluding currency fluctuations). The combined ratio increased slightly by 0.9 points to 92.8%, as the current quarter did not benefit from the favorable prior period development seen in Q2 2024 International Segment (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net written premiums** | $391M | $359M | | **Underwriting gain** | $23M | $25M | | **Combined ratio** | 92.8% | 91.9% | | **Underlying combined ratio** | 91.4% | 90.9% | - The combined ratio increased primarily because there was no net prior period development in the current quarter, compared to **1.0 point** of favorable development in the prior year quarter[21](index=21&type=chunk) [Life & Group](index=7&type=section&id=Life%20%26%20Group) The Life & Group segment reported a core income of $1 million for the second quarter of 2025, a slight improvement from a core loss of $1 million in the prior year quarter. The result was generally consistent, reflecting favorable persistency offset by lower net investment income Life & Group Results (Q2 2025 vs Q2 2024) | ($ millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net earned premiums** | $106 | $109 | | **Net investment income** | $235 | $239 | | **Core income (loss)** | $1 | ($1) | [Corporate & Other](index=7&type=section&id=Corporate%20%26%20Other) The Corporate & Other segment's core loss significantly increased to $114 million from $53 million in the prior year quarter. This was primarily driven by an $88 million after-tax charge related to unfavorable prior period development for legacy mass tort claims - The core loss more than doubled, increasing by **$61 million** compared to the prior year quarter[24](index=24&type=chunk) - The main driver for the increased loss was an **$88 million** after-tax charge for legacy mass tort development, compared to a smaller **$28 million** charge in Q2 2024[24](index=24&type=chunk) [Investment & Capital Management](index=7&type=section&id=Investment%20%26%20Capital%20Management) Net investment income increased due to higher fixed income and limited partnership returns, contributing to modest growth in stockholders' equity [Net Investment Income](index=7&type=section&id=Net%20Investment%20Income) Net investment income for Q2 2025 increased by 7% to $662 million, up from $618 million in the prior year quarter. The growth was driven by higher income from both fixed income securities, due to a larger asset base and better reinvestment rates, and favorable returns from limited partnership and common stock investments Net Investment Income Breakdown (Q2 2025 vs Q2 2024) | ($ millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Fixed income securities and other** | $562 | $540 | | **Limited partnership and common stock** | $100 | $78 | | **Total Net investment income** | $662 | $618 | [Stockholders' Equity](index=7&type=section&id=Stockholders'%20Equity) Stockholders' equity increased by 1% from year-end 2024 to $10.7 billion. Book value per share excluding AOCI, a key metric of operational net worth, increased 4% from year-end 2024 after adjusting for dividends paid. The company maintained a strong statutory capital and surplus of $11.2 billion Book Value Per Share | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Book value per share** | $39.39 | $38.82 | | **Book value per share ex AOCI** | $45.25 | $46.16 | - The Board of Directors declared a regular quarterly cash dividend of **$0.46 per share**[2](index=2&type=chunk)[6](index=6&type=chunk) [Non-GAAP Financial Measures & Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section reconciles key non-GAAP financial measures like Core Income and Underwriting Gain to provide a clearer view of operational performance [Reconciliation of Net Income to Core Income](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Core%20Income) This section reconciles GAAP Net Income to the non-GAAP measure of Core Income. Core Income is used by management to assess segment performance by excluding the after-tax effects of net investment gains or losses, which are often driven by economic factors not reflective of primary operations Reconciliation of Net Income to Core Income (Q2 2025) | ($ millions) | Value | | :--- | :--- | | **Net income** | $299 | | Less: Net investment losses | ($36) | | **Core income** | $335 | Reconciliation of Net Income per Share to Core Income per Share (Q2 2025) | Per Diluted Share | Value | | :--- | :--- | | **Net income per diluted share** | $1.10 | | Less: Net investment losses | ($0.13) | | **Core income per diluted share** | $1.23 | [Reconciliation of Net Income to Underwriting Gain](index=11&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Underwriting%20Gain) This section provides a reconciliation from Net Income to Underwriting Gain and Underlying Underwriting Gain for the P&C segments. Underwriting Gain measures pre-tax profitability from underwriting activities, while Underlying Underwriting Gain further excludes unpredictable catastrophe losses and prior-period development to show current year performance P&C Underwriting Gain Reconciliation (Q2 2025) | ($ millions) | Value | | :--- | :--- | | **Core income** | $448 | | Less: Net investment income & other items | ($235) | | **Underwriting gain** | $150 | | Effect of catastrophe losses | $62 | | Effect of unfavorable development | $1 | | **Underlying underwriting gain** | $213 | [Reconciliation of Book Value and ROE](index=13&type=section&id=Reconciliation%20of%20Book%20Value%20and%20ROE) The report provides reconciliations for book value and return on equity. Book value per share excluding AOCI is presented to reduce the impact of interest rate fluctuations on net worth. Similarly, Core Return on Equity is calculated to measure how effectively the company invests the portion of net worth attributable to its core business operations Reconciliation of Book Value per Share (June 30, 2025) | Metric | Value | | :--- | :--- | | **Book value per share** | $39.39 | | Less: Per share impact of AOCI | ($5.86) | | **Book value per share excluding AOCI** | $45.25 | Return on Equity (Annualized for Q2) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Return on equity** | 11.4% | 13.0% | | **Core return on equity** | 11.0% | 10.6% | [Definitions and Forward-Looking Statements](index=8&type=section&id=Definitions%20and%20Forward-Looking%20Statements) This section defines the company's segments and financial measures, including non-GAAP metrics, and provides forward-looking statements [Definition of Segments and Financial Measures](index=8&type=section&id=Definition%20of%20Segments%20and%20Financial%20Measures) This section defines the company's reported business segments (Specialty, Commercial, International, Life & Group, Corporate & Other) and key financial metrics. It clarifies the calculation of GAAP-based ratios like the loss and expense ratio, as well as non-GAAP measures such as the underlying loss ratio and underlying combined ratio, which exclude catastrophe losses and prior-period development - The company's operations are divided into five segments: Specialty, Commercial, International, Life & Group, and Corporate & Other[33](index=33&type=chunk) - Key non-GAAP measures like 'underlying loss ratio' and 'underlying combined ratio' are used to evaluate underwriting performance by removing the unpredictable impact of catastrophe losses and prior year development[31](index=31&type=chunk) [Forward-Looking Statements](index=13&type=section&id=Forward-Looking%20Statements) The report includes a standard safe harbor statement, cautioning that the press release contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially. CNA states it has no obligation to update these statements - The press release contains forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which are subject to inherent risks and uncertainties[52](index=52&type=chunk) - CNA does not have an obligation to update or revise any forward-looking statements, even if its expectations or related circumstances change[53](index=53&type=chunk)

Group 1 - CNA Financial Corporation will report its second quarter 2025 results on August 4, 2025, before the market opens [1] - The earnings release will include a news release, earnings presentation, financial supplement, and a transcript of earnings remarks from the President and CEO, Douglas M. Worman, and CFO, Scott R. Lindquist [1] - Shareholders and analysts are invited to submit questions for management in advance of the earnings release, which may be addressed in the earnings remarks [2] Group 2 - CNA is one of the largest U.S. commercial property and casualty insurance companies, with over 125 years of experience [3] - The company provides a wide range of standard and specialized insurance products and services for businesses and professionals in the U.S., Canada, and Europe [3]