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]

Core Insights - CNA Financial Corporation reported strong financial results for the third quarter of 2025, with earnings per share of $1.48, exceeding the estimated $1.25, and revenue of approximately $3.82 billion, surpassing the estimated $2.84 billion [1][6]. Financial Performance - The company achieved a net income of $403 million, or $1.48 per share, a significant increase from $283 million, or $1.04 per share, in the same quarter of the previous year [2]. - Core income reached a record $409 million, or $1.50 per share, up from $293 million, or $1.08 per share, in the prior year quarter [2][4]. Segment Analysis - The Property and Casualty segments generated core income of $456 million, an increase of $110 million compared to the previous year, driven by lower catastrophe losses, improved underwriting results, and higher net investment income [3]. - The segments, excluding third-party captives, experienced a 2% growth in gross written premiums and a 3% increase in net written premiums, supported by a 4% renewal premium change [3]. Overall Financial Metrics - Year-to-date core income increased by 5% to a record $1.025 billion [4]. - The company's price-to-earnings (P/E) ratio is approximately 13.97, and the price-to-sales ratio is about 0.84, indicating a relatively low market valuation compared to its revenue [4]. - The enterprise value to sales ratio is around 1.02, and the enterprise value to operating cash flow ratio is approximately 5.60 [5]. - The earnings yield is about 7.16%, and the debt-to-equity ratio is approximately 0.28, reflecting a moderate level of debt [5]. - The current ratio is around 0.43, which may indicate potential liquidity concerns [5].

Core Financial Performance - CNA Financial Corporation reported a net income of $403 million for Q3 2025, a 42% increase from $283 million in Q3 2024 [1][2] - Core income reached a record $409 million, up from $293 million in the prior year quarter, marking a 40% growth [2][3] - Year-to-date core income surpassed $1 billion for the first time in history [3] Underwriting and Investment Results - Underwriting income was exceptionally strong at $194 million, nearly triple the prior year's quarter, supported by low catastrophe losses [3] - The underlying underwriting gain reached a record $235 million, marking the tenth consecutive quarter above $200 million [4] - Net investment income increased year over year due to higher fixed income results [4] Property & Casualty Segment Performance - The Property & Casualty (P&C) combined ratio improved to 92.8% from 97.2% in Q3 2024, with catastrophe losses significantly reduced to $41 million pretax from $143 million [5] - P&C segments produced core income of $456 million for the quarter, an increase of $110 million compared to Q3 2024 [4][5] - The P&C underlying combined ratio was 91.3%, slightly improved from 91.6% in the prior year quarter [5] Premium Growth and Strategic Focus - P&C segments, excluding third-party captives, saw gross written premium (GWP) growth of 2% and net written premium growth of 3%, driven by a renewal premium change of +4% [6] - The company maintained disciplined underwriting, prioritizing profitability over growth in challenging market segments [7] - CNA is investing in talent and technology, including artificial intelligence, and expanding its Cardinal E&S offering to capitalize on opportunities in the excess and surplus lines market [7] Leadership and Future Outlook - The third quarter results reflect outstanding underwriting performance, prudent risk management, and strategic growth, positioning the company for a strong finish to the year [8] - Acknowledgment of Dino Robusto's contributions as Executive Chairman, highlighting his leadership over the past nine years [9]

Core Insights - The company reported record core income of $409 million for the third quarter, driven by strong underwriting gains and higher net investment income [1] - Year-to-date core income exceeded $1 billion for the first time, indicating robust financial performance [1] - Underwriting income reached $194 million, nearly tripling compared to the same quarter last year, benefiting from low catastrophe losses [1] Financial Performance - The net written premiums grew by 3%, reflecting the company's ability to identify growth opportunities while maintaining strong underwriting discipline [1] - Operating cash flow remained strong, with net investment income increasing by $12 million year-over-year to $638 million, attributed to improved fixed income results [1] Combined Ratio Analysis - The P&C all-in combined ratio was reported at 92.8% for the third quarter, including $41 million in catastrophe losses, which contributed 1.5 points to the ratio [2] - The underlying combined ratio was 91.3%, with an underlying loss ratio of 61.9%, slightly higher than previous periods, indicating a cautious approach to market conditions [2] - The expense ratio was effectively managed at 29.1%, showcasing the company's operational efficiency [2]

Financial Highlights - Net income reached $403 million, a 42% increase compared to $283 million in the prior year quarter[6,7] - Core income increased by 40% to a record $409 million, compared to $293 million in the prior year quarter[6,7] - Year-to-date core income also hit a record $1,025 million, up 5%[6,7] - Net investment income rose by 2% to $638 million pretax, with fixed income securities and other investments contributing $567 million and limited partnerships and common stock contributing $71 million[6] Property & Casualty (P&C) Operations - P&C core income was $456 million, up from $346 million, driven by lower catastrophe losses, improved underwriting results, and higher net investment income[6] - The P&C combined ratio improved to 928%, compared to 972% in the prior year quarter, including a 15 points catastrophe loss impact compared with 58 points in the prior year quarter[6] - P&C segments, excluding third party captives, saw gross written premium growth of 2% and net written premium growth of 3%[6] Life & Group (L&G) and Long-Term Care (LTC) - Life & Group experienced a core loss of $22 million, compared to a loss of $9 million in the prior year quarter[6] - Individual LTC policies have declined by 50% (~96000 policies) since 2015 with stable open claim counts[28] - Group LTC policies have declined 48% (~111000 insureds) since 2015 from active management with claim counts remaining stable[34] Capital and Dividends - Book value per share was $4183, while book value per share excluding AOCI was $4630, an 8% increase from year-end 2024 adjusting for $338 of dividends per share paid[6] - The Board of Directors declared a regular quarterly cash dividend of $046 per share[6]

Financial Performance - For the three months ended September 30, 2025, net income increased to $403 million, compared to $283 million for the same period in 2024, representing a 42.4% increase[10] - For the nine months ended September 30, 2025, net income was $976 million, up from $938 million in 2024, reflecting a 4.1% growth[10] - Total comprehensive income for the three months ended September 30, 2025, was $778 million, compared to $993 million in 2024, a decrease of 21.7%[10] - Core income for Q3 2025 was $409 million, compared to $293 million in Q3 2024, indicating a significant increase of approximately 39.6%[130][132] - Total operating revenues for Q3 2025 reached $3,824 million, an increase from $3,628 million in Q3 2024, representing a growth of approximately 5.4%[130] - Total operating revenues for the nine months ended September 30, 2025, reached $11,223 million, an increase from $10,623 million in the same period of 2024, representing a growth of approximately 5.6%[138] - Net earned premiums amounted to $8,103 million for the nine months ended September 30, 2025, compared to $7,532 million in 2024, reflecting an increase of 8.5%[138] Assets and Liabilities - Total assets as of September 30, 2025, were $69,756 million, an increase from $66,492 million as of December 31, 2024, representing a growth of 3.4%[11] - Total liabilities increased to $58,434 million as of September 30, 2025, compared to $55,979 million at the end of 2024, a rise of 4.4%[11] - Total assets as of September 30, 2025, amounted to $46,497 million, an increase from $43,692 million as of December 31, 2024, representing a growth of approximately 6.4%[57] - Total fixed maturity securities increased to $43,702 million as of September 30, 2025, up from $41,111 million at the end of 2024, reflecting a growth of about 6.3%[57] Investment Performance - The company reported a total of $50,536 million in investments as of September 30, 2025, up from $47,482 million at the end of 2024, a growth of 4.3%[11] - Net investment income for the nine months ended September 30, 2025, was $1,904 million, compared to $1,853 million in 2024, indicating a 2.8% increase[29] - The gross investment income for the nine months ended September 30, 2025, was $1,971 million, compared to $1,916 million in 2024, reflecting a 2.9% increase[29] - Net investment gains (losses) for the nine months ended September 30, 2025, were $(62) million, compared to $(42) million in 2024[30] - The total fixed maturity securities available-for-sale as of September 30, 2025, had an estimated fair value of $43,687 million, down from $41,111 million as of December 31, 2024[34] Claims and Expenses - The claim and claim adjustment expenses increased to $26,525 million as of September 30, 2025, from $24,976 million at the end of 2024, reflecting a 6.2% increase[11] - The net incurred claim and claim adjustment expenses for the nine months ended September 30, 2025, totaled $5,231 million, compared to $4,762 million for the same period in 2024, reflecting an increase of about 9.8%[75] - The company reported catastrophe losses, net of reinsurance, of $41 million and $200 million for the three and nine months ended September 30, 2025, compared to $143 million and $313 million for the same periods in 2024[73] - The total claims, benefits, and expenses for Q3 2025 amounted to $3,304 million, compared to $3,253 million in Q3 2024, reflecting an increase of about 1.6%[130][132] Shareholder Returns - The company paid dividends of $922 million to common stockholders in the nine months ended September 30, 2025, compared to $906 million in 2024, a 1.8% increase[13] - Basic earnings per share for the nine months ended September 30, 2025, was $3.60, up from $3.46 in 2024, reflecting a 4.0% increase[25] - The Company repurchased 700,000 shares of common stock at a total cost of $34 million during the nine months ended September 30, 2025[26] Reserves and Future Liabilities - Future policy benefits reserves related to the Company's long-term care business amounted to $16.986 billion as of September 30, 2025[106] - The net LFPB was $13.546 billion as of September 30, 2025[106] - The company ceded approximately $1.6 billion of net Asbestos & Environmental Pollution claim reserves to National Indemnity Company through a Loss Portfolio Transfer[95] - The potential amount of future payments under guarantees was approximately $1.9 billion as of September 30, 2025[116] Other Financial Metrics - The accumulated other comprehensive loss decreased to $(1,211) million as of September 30, 2025, from $(1,991) million at the end of 2024, indicating an improvement[15] - The company recognized $5 million in impairment losses on mortgage loans during the nine months ended September 30, 2025, due to changes in expected credit losses[31] - The allowance for credit losses increased to $61 million as of September 30, 2025, from $51 million as of July 1, 2025, reflecting additional increases of $3 million and $4 million for corporate and asset-backed securities respectively[42]

Financial Performance - Net income for Q3 2025 was $403 million, or $1.48 per share, compared to $283 million, or $1.04 per share, in the prior year quarter, representing a 42% increase in net income [3]. - Core income reached a record $409 million, or $1.50 per share, up 40% from $293 million, or $1.08 per share, in the prior year quarter [2]. - Year-to-date core income surpassed $1 billion for the first time in history, with underwriting income at $194 million, nearly triple the prior year's quarter [7]. - Core income for the nine months ended September 30, 2025, was $1,025 million, up from $974 million in 2024, reflecting a growth of 5.2% [42]. - Core income per diluted share for the three months ended September 30, 2025, was $1.50, compared to $1.08 in 2024, marking an increase of 38.9% [44]. - The annualized return on equity for the three months ended September 30, 2025, was 14.7%, up from 11.0% in the same period of 2024 [55]. - The company reported a core return on equity of 13.2% for the three months ended September 30, 2025, compared to 9.4% in 2024 [55]. Underwriting and Premiums - Property & Casualty (P&C) core income increased to $456 million, up $110 million from the prior year quarter, driven by lower catastrophe losses and improved underwriting results [4]. - Gross written premium growth for P&C segments, excluding third party captives, was 2%, while net written premium growth was 3% [15]. - Gross written premiums excluding third-party captives increased by 1% to $1,559 million for Q3 2025, compared to $1,538 million in Q3 2024 [19]. - Net written premiums grew by 2% to $1,251 million for Q3 2025, up from $1,221 million in Q3 2024 [19]. - Net earned premiums rose by 10% to $1,453 million for Q3 2025, compared to $1,325 million in Q3 2024 [19]. - The combined ratio improved by 7.5 points to 92.7% in Q3 2025, down from 100.2% in Q3 2024 [20]. - The underlying combined ratio reached a record low of 90.0%, improving by 0.7 points year-over-year [19]. - The underlying combined ratio improved to 91.3%, with an expense ratio of 29.1%, the lowest since 2008 [8]. - Underwriting gain for the three months ended September 30, 2025, was $194 million, compared to $68 million in 2024, indicating a significant increase of 185.3% [48]. - The underlying underwriting gain for the three months ended September 30, 2025, was $235 million, compared to $209 million in 2024, reflecting an increase of 12.4% [48]. Investment and Equity - Net investment income rose 2% to $638 million pretax, with a $21 million increase from fixed income securities [2]. - Net investment income for Q3 2025 was $638 million, an increase of $12 million from $626 million in Q3 2024 [27]. - Stockholders' equity rose by 8% to $11.3 billion from year-end 2024, driven by net income and improved net unrealized investment losses [28]. - Book value per share increased to $41.83, with a book value excluding AOCI of $46.30, reflecting an 8% increase from year-end 2024 [2]. - Book value per share as of September 30, 2025, was $41.83, an increase from $38.82 as of December 31, 2024 [53]. Catastrophe Losses - P&C combined ratio improved to 92.8%, down from 97.2% in the prior year quarter, with catastrophe losses of $41 million compared to $143 million in the prior year [8]. - The effect of catastrophe losses for the three months ended September 30, 2025, was $41 million, compared to $143 million in 2024, showing a decrease of 71.4% [48]. - Core loss for Life & Group segment increased to $(22) million in Q3 2025, compared to $(9) million in Q3 2024 [24]. Dividends - The company declared a quarterly cash dividend of $0.46 per share, payable on December 4, 2025 [5].

Financial Performance - Q3 2025 - Loews Corporation's net income increased to $504 million, or $2.43 per share, compared to $401 million, or $1.82 per share, in Q3 2024[13] - The company repurchased 0.9 million shares at a cost of $85 million since June 30, 2025[13] - Book value per share increased to $88.39 as of September 30, 2025, from $79.49 as of December 31, 2024[13] - Dividends from subsidiaries totaled $189 million in Q3 2025[13] - The company held $3.6 billion in cash and investments at the parent company level as of September 30, 2025[8, 13] Subsidiary Highlights - CNA's net income attributable to Loews increased 43% year-over-year due to improved Property and Casualty underwriting results[17] - Boardwalk's net income improved 22% year-over-year due to increased transportation revenues[17] - Boardwalk executed a precedent agreement for its Texas Gateway Project, which would add 1.5 Bcf/d of capacity[17] - Loews Hotels' results improved year-over-year due to new properties and higher average daily rates and occupancy in Orlando[17] CNA Financial Highlights - CNA's net written premiums increased to $2.437 billion in Q3 2025 from $2.360 billion in Q3 2024[29] - CNA's invested assets (fair value) increased to $50.536 billion as of September 30, 2025, from $47.482 billion as of December 31, 2024[29] Boardwalk Pipeline Highlights - Boardwalk's operating revenue increased to $541 million in Q3 2025 from $474 million in Q3 2024[32] - Boardwalk's net income attributable to Loews increased to $94 million in Q3 2025 from $77 million in Q3 2024[32]