CNA Financial Corporation First Quarter 2025 Results Notices and Disclaimers Forward Looking Statements The statements made in the course of this presentation and/or contained in the presentation materials may include statements that relate to anticipated future events (forward-looking statements) rather than actual present conditions or historical events. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such ...

Financial Performance - Net income for Q1 2025 was $274 million, or $1.00 per share, down from $338 million, or $1.24 per share, in the prior year quarter [3]. - Core income for Q1 2025 was $281 million, or $1.03 per share, compared to $355 million, or $1.30 per share, in the prior year quarter [3]. - Core income for Q1 2025 was $6 million, consistent with the prior year quarter, reflecting favorable persistency [23]. - Net investment income for Q1 2025 was $604 million, a decrease of $5 million from the prior year quarter [25]. - Return on equity for Q1 2025 was 10.5%, down from 13.8% in the prior year [48]. Property & Casualty (P&C) Performance - Property & Casualty (P&C) core income decreased to $311 million from $372 million, attributed to lower underwriting results [4]. - P&C gross written premiums grew by 7% to $3.142 billion, while net written premiums increased by 9% to $2.606 billion [12]. - New business in P&C grew by 7% to $565 million in the quarter [9]. - The P&C combined ratio was 98.4%, an increase from 94.6% in the prior year quarter, with catastrophe losses of $97 million [14]. - The underlying combined ratio for P&C increased to 92.1%, up from 91.0% in the prior year quarter [14]. - Catastrophe losses included $53 million for California wildfires, compared to $88 million in the prior year quarter [14]. - The combined ratio increased by 2.1 points compared to the prior year quarter, with catastrophe losses of $11 million contributing 3.6 points to the loss ratio [22]. - Gross written premiums grew by 4% and net written premiums increased by 7% for Q1 2025, excluding currency fluctuations [22]. - The underlying underwriting gain for Q1 2025 was $200 million, compared to $209 million in the prior year [44]. Shareholder Information - Book value per share was $37.98, a decrease from $38.82 at year-end 2024 [7]. - Book value per share excluding AOCI increased by 2% to $44.58 from year-end 2024 [46]. - Stockholders' equity decreased by 2% to $10.3 billion from year-end 2024, primarily due to dividends paid [26]. - The company declared a quarterly cash dividend of $0.46 per share, payable on June 5, 2025 [6]. Forward-Looking Statements - Forward-looking statements indicate that actual results may differ materially from projections due to inherent risks and uncertainties [50]. - CNA does not have an obligation to update or revise any forward-looking statements even if expectations change [51]. - Descriptions of coverage under CNA policies are for convenience only and should not be relied upon for coverage questions [52].

5.1 MILLION COMMON SHARES REPURCHASED IN 2025 FOR $429 MILLIONNEW YORK, May 5, 2025 /PRNewswire/ -- Loews Corporation (NYSE: L) today released its first quarter 2025 financial results.First Quarter 2025 highlights: Loews Corporation reported net income of $370 million, or $1.74 per share, in the first quarter of 2025, compared to $457 million, or $2.05 per share, in the first quarter of 2024. The following are key highlights of our first quarter results: CNA Financial Corporation's (NYSE: CNA) net income at ...

Core Insights - CNA Financial Corporation reported a first quarter 2025 net income of $274 million, or $1.00 per share, down from $338 million, or $1.24 per share, in the prior year quarter [1][6] - Core income for the quarter was $281 million, or $1.03 per share, compared to $355 million, or $1.30 per share, in the prior year quarter [1][6] - The company declared a quarterly dividend of $0.46 per share, payable on June 5, 2025 [4] Property & Casualty Segment - The Property & Casualty (P&C) segment produced core income of $311 million, a decrease of $61 million from the prior year quarter, attributed to lower underwriting results, partially offset by higher net investment income [2][6] - P&C segments, excluding third-party captives, achieved gross written premium growth of 7% and net written premium growth of 9%, driven by an 86% retention rate and a renewal premium change of +6% [2][10] - The P&C combined ratio was 98.4%, up from 94.6% in the prior year quarter, including a 3.8-point impact from catastrophe losses [6][8] Life & Group Segment - The Life & Group segment generated core income of $6 million for the first quarter of 2025, slightly up from $5 million in the prior year quarter [3][22] Corporate & Other Segment - The Corporate & Other segment reported a core loss of $36 million, compared to a loss of $22 million in the prior year quarter, primarily due to a $17 million after-tax charge related to legacy mass tort claims [3][23] Investment Income - Net investment income for the quarter was $604 million, reflecting a $5 million decrease from the prior year, with a notable decline in limited partnership and common stock returns [6][24] Book Value and Equity - Book value per share was $37.98, down from $38.82 at year-end 2024, while book value per share excluding AOCI was $44.58, a 2% increase from year-end 2024 [25][46][47] - Stockholders' equity decreased by 2% from year-end 2024 to $10.3 billion, primarily due to dividends paid [25]

Company Overview - CNA Financial (CNA) is expected to report a year-over-year decline in earnings of 10.8%, with earnings projected at $1.16 per share and revenues at $3.07 billion, reflecting a slight increase of 0.3% from the previous year [3][10] - The stock's movement will depend on whether the actual results exceed or fall short of these expectations, with the earnings report scheduled for May 5 [2][3] Earnings Estimates and Trends - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4] - The Most Accurate Estimate for CNA Financial is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -10.82%, suggesting a bearish sentiment among analysts [10][11] Earnings Surprise History - In the last reported quarter, CNA Financial exceeded expectations by delivering earnings of $1.25 per share against an estimate of $1.11, resulting in a surprise of +12.61% [12] - Over the past four quarters, the company has beaten consensus EPS estimates two times [13] Industry Context - In comparison, Fairfax Financial Holdings (FRFHF), another player in the insurance industry, is expected to post earnings of $41.08 per share, reflecting a year-over-year increase of 33.3%, with revenues projected at $7.76 billion, up 1% [17] - Fairfax Financial Holdings has also seen a downward revision of its EPS estimate by 19.1% over the last 30 days, resulting in an Earnings ESP of -1.98% [18]

Group 1 - CNA Financial Corporation will report its first quarter 2025 results on May 5, 2025, before the market opens [1] - The earnings release will include a news release, earnings presentation, and financial supplement available on CNA's website [1] - A transcript of earnings remarks will feature commentary from the President and CEO, Douglas M. Worman, and CFO, Scott R. Lindquist [1] Group 2 - CNA invites shareholders and analysts to submit questions for management ahead of the earnings release, which may be addressed in the earnings remarks [2] - Questions can be submitted via email to a specified address [2] Group 3 - 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]

Company Overview - CNA Financial Corporation (CNA) is positioned for growth due to business expansion across Specialty, Commercial, and International segments, an improving rate environment, financial flexibility, and effective capital deployment [1] Earnings History - CNA has a solid track record of beating earnings estimates in two of the last four quarters, with an average surprise of 2.18% [2] Growth Factors - Premiums are expected to grow due to strong retention, favorable renewal premium changes, and new business growth across various segments [3] - The improving rate environment is beneficial for the insurer, supported by a fixed-income investment strategy focused on diversified investment-grade corporates and highly rated municipal securities [3] Financial Position - CNA maintains a solid balance sheet with statutory capital and surplus of $11.2 billion, reflecting a 2% growth from the end of 2023 [4] - The company has a conservative capital structure and maintains liquidity through cash and short-term investments [4] Shareholder Returns - CNA's dividend history shows a 10-year CAGR of 6.3%, with a current dividend yield of 3.6%, significantly higher than the industry average of 0.2% [5] - The company has been increasing dividends and paying special dividends, demonstrating a commitment to returning value to shareholders [5] Return on Capital - CNA's trailing 12-month Return on Equity (ROE) is 3.66%, outperforming the industry average of 0.2%, with core ROE expanding to 10.5% in 2024 [6] Concerns - CNA faces exposure to catastrophe losses from natural disasters, reporting $358 million in catastrophe losses for 2024, an increase from $236 million in the previous year [7] - The company has been experiencing rising expenses due to increasing net incurred claims and benefits, which may impact overall profitability [8] Industry Comparison - Other industry players include The Progressive Corporation (PGR), Kingstone Companies, Inc. (KINS), and Palomar Holdings, Inc. (PLMR) [9] - Progressive has consistently surpassed earnings estimates, with an average surprise of 18.49%, driven by a compelling product portfolio and strong customer retention [9][10] - Kingstone Companies is focused on core business growth, expecting direct written premiums to increase by 15% to 25% in 2025 [11] - Palomar has also exceeded earnings estimates, with an average surprise of 16.64%, and aims to be a leader in the crop business with projections exceeding $200 million in premiums [12]

Core Insights - The CrickAnt serves as an actuary for an insurance company, leveraging extensive experience to analyze insurance and reinsurance sectors [1] - The Cash Flow Club, co-founded by The CrickAnt, focuses on company cash flows and capital access, offering features like a personal income portfolio targeting yields over 6%, community discussions, and a "Best Opportunities" List [1] Company and Industry Analysis - The Cash Flow Club covers various sectors including energy midstream, commercial mREITs, BDCs, and shipping, indicating a diverse investment focus [1]

Core Insights - CNA Financial reported fourth-quarter 2024 core earnings of $1.25 per share, exceeding the Zacks Consensus Estimate by 12.6%, although it represented a 6% decrease year over year [1][2] Financial Performance - Total operating revenues reached $3.3 billion, marking a 7.4% increase year over year, driven by higher premiums, net investment income, and other revenues, surpassing the Zacks Consensus Estimate by 4.6% [3] - Net written premiums in Property & Casualty Operations rose 10% year over year to $2.8 billion, supported by an 86% retention rate and a 4% renewal premium change [3] - Net investment income increased by 5% year over year to $644 million, attributed to higher income from fixed-income securities and limited partnerships, slightly below the Zacks Consensus Estimate of $645 million [4] - Total claims, benefits, and expenses surged 20% to $3.7 billion, primarily due to increased insurance claims and policyholders' benefits [5] - Catastrophe losses amounted to $45 million, compared to $22 million in the prior year [5] - Underwriting income improved by 10% year over year to $222 million, exceeding the estimate of $188.5 million [5] Ratios and Capital - The combined ratio deteriorated by 100 basis points year over year to 93.1, slightly above the Zacks Consensus Estimate of 93 [6] - Core return on equity expanded by 10 basis points year over year to 9.4% [10] - Book value per share increased by 8% from year-end 2023 to $38.82 [10] - Statutory capital and surplus stood at $11.2 billion at the end of 2024, reflecting a 2% increase from the previous year [10] Dividend Information - The board approved a quarterly dividend of 46 cents per share, a 5% increase from the previous payout, along with a special dividend of $2.00 per share [11] Segment Performance - Specialty's net written premiums rose 5% year over year to $934 million, while the combined ratio deteriorated by 300 basis points to 93.8 [7] - Commercial's net written premiums increased by 12% year over year to $1.5 billion, with the combined ratio improving by 60 basis points to 92.3 [7] - International's net written premiums grew by 13% year over year to $366 million, with the combined ratio deteriorating by 180 basis points to 94.8 [8] - Life & Group's net earned premiums decreased by 2.7% year over year to $108 million, resulting in a core loss of $18 million [8] - Corporate & Other reported a core loss of $91 million, wider than the loss of $76 million in the previous year [9]

Company Overview - CNA Financial Corporation reported a significant presence in the property and casualty insurance market, with operations in the U.S., Canada, the U.K., and Continental Europe[12]. - As of December 31, 2024, CNA had approximately 6,500 employees, focusing on creating a culture of inclusion and talent development[27]. - The company operates under the Solvency II regulations in Europe, which govern capital adequacy and risk management[22]. - CNA's operations are managed in three segments: Specialty, Commercial, and International, with additional segments for Life & Group and Corporate & Other[15]. Regulatory Environment - The company is subject to comprehensive regulation, including oversight by the State of Illinois Department of Insurance and other international regulatory bodies[17]. - Regulatory changes, including the Group Capital Calculation (GCC), are being adopted to improve group-wide supervision and solvency monitoring[24]. - The insurance industry is heavily regulated, and any changes in regulations could impose significant burdens on the company[94]. - The company is subject to evolving regulations related to climate change, artificial intelligence, and cybersecurity, which may affect its operations[25]. - The National Association of Insurance Commissioners (NAIC) has developed a Group Capital Calculation (GCC) to quantify risk across insurance groups, which the company must adhere to[24]. - The company must comply with premium rate regulations to avoid excessive or unfairly discriminatory rates, which could lead to financial losses[97]. Financial Condition and Risks - The company maintains insurance reserves to cover estimated ultimate unpaid liabilities, which are subject to significant variability and judgment[38]. - Emerging claims and coverage issues, including social inflation, have a material impact on the company's financial condition and may lead to increased reserves[40]. - Catastrophe losses from natural and man-made disasters are unpredictable and could have a material adverse effect on the company's business, results of operations, financial condition, and liquidity[45][49]. - The company recorded significant losses during 2020 related to COVID-19, with ongoing claims and litigation that may continue to impact financial condition[50][52]. - The adequacy of future policy benefit reserves for long-term care policies is contingent upon key actuarial assumptions, including morbidity and persistency, which are assessed quarterly and updated at least annually[42]. - The company faces risks related to reinsurance, including obtaining coverage at acceptable costs and the credit risk of reinsurers, which could adversely impact underwriting strategies[58][59]. - The company is exposed to risks from natural and man-made disasters, with catastrophe losses being difficult to estimate and potentially leading to large financial impacts[45]. - The company may not earn adequate returns on investments, which could materially adversely affect business and financial condition[68]. Competition and Market Dynamics - The competitive landscape in the insurance industry has evolved, with significant consolidation and new entrants, increasing pressures on pricing and underwriting standards[55][56]. - The company faces intense competition in the insurance industry, with pressures from both traditional competitors and new insurtech entrants affecting pricing and market share[55]. - The cyclical nature of the property and casualty market may lead to periods of high price competition, impacting premium levels and expense ratios adversely[56]. - The company is vulnerable to material losses from mass tort claims, which may arise from changes in the legal environment and evolving judicial interpretations[54]. Operational and Cybersecurity Risks - Operational risks include reliance on analytical models for decision-making, which may lead to significant discrepancies between actual results and model outputs[69]. - Cybersecurity incidents, including a ransomware attack in March 2021, have previously disrupted operations and may lead to financial losses and reputational damage[80]. - Cybersecurity threats remain a concern, with past incidents resulting in data breaches that could harm reputation and lead to financial losses[78]. - The company maintains cybersecurity insurance, but coverage may not fully address losses from future cyber incidents[81]. - Reliance on third-party service providers for underwriting and claims administration poses risks, including potential regulatory penalties for contractual breaches[84]. Investment Risks - The investment portfolio is exposed to various risks, including interest rate, credit spread, and equity prices, which can lead to significant realized and unrealized investment losses[64]. - A decline in interest rates may reduce returns on new fixed maturity investments, potentially decreasing net investment income, while an increase in interest rates could increase net unrealized losses[65]. - Limited partnership investments are subject to greater market volatility and lower liquidity, contributing to variability in reported earnings[66]. - The portfolio of commercial mortgage loans is at risk due to potential declines in cash flows from underlying property leases and tenant creditworthiness[67]. Corporate Governance - The company is controlled by a single stockholder, Loews, which owns approximately 92% of outstanding shares, potentially leading to conflicts of interest[63]. - Loews beneficially owned approximately 92% of the company's outstanding shares as of December 31, 2024, allowing it to control significant corporate actions[63]. - The company is subject to capital adequacy requirements, and failure to maintain sufficient capital could restrict operations[89]. - Regulatory limitations on dividend payments from insurance subsidiaries may hinder the ability to meet corporate obligations[90]. - Rating agencies may downgrade the company's ratings, adversely affecting competitive positioning and increasing capital costs[91].