Key Takeaways CNA drives premium growth through strong retention, favorable renewal premium changes and new business gains. CNA has consistently rewarded shareholders through regular dividend hikes and special dividends. Favorable growth estimates and an attractive valuation position CNA for long-term value creation. CNA Financial Corporation (CNA) shares are trading at a discount compared to the Zacks Property and Casualty Insurance industry. Its forward price-to-book value of 1.17X is lower than the indus ...

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 ...

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]

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].

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]

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 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]

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]

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]