Core Insights - The Zacks Property and Casualty (P&C) Insurance industry is positioned for growth due to better pricing, prudent underwriting, and an improving rate environment, supported by a solid capital position [2][4] - Despite challenges from increased catastrophe events leading to significant economic and insurance losses, the P&C insurance industry has outperformed the S&P 500 and Finance sector year-to-date [3][4] - The industry is experiencing a shift towards technology adoption, which is expected to enhance operational efficiency and generate substantial premiums from AI-related insurance by 2032 [10] Industry Overview - The P&C insurance industry has a Zacks Industry Rank of 31, placing it in the top 12% of over 250 Zacks industries, indicating strong growth potential [2] - Global commercial insurance rates saw a 1% decrease in Q3 2024, marking the first decline in seven years [6] - Analysts predict a premium growth of 9.5% for 2024 and 4% for 2025, with gross premiums expected to exceed $722 billion by 2030 [7] Company Highlights - **First American Financial Corp. (FAF)**: Market cap of $7.17 billion, with a dividend yield of 3.1% and a five-year annualized dividend growth rate of 5.19%. The company is well-positioned to benefit from increased demand among millennials for home purchases [12][13] - **Cincinnati Financial Corp. (CINF)**: Market cap of $24.92 billion, with a dividend yield of 2.03% and a five-year annualized dividend growth rate of 7.97%. The company has a strong history of dividend increases, having raised its annual cash dividend for 64 consecutive years [14][15] - **CNA Financial Corp. (CNA)**: Market cap of $13.46 billion, with a dividend yield of 3.5% and a five-year annualized dividend growth rate of 4.60%. The company focuses on better pricing and increased exposure across its segments [16][17] - **American Financial Group (AFG)**: Market cap of $12.51 billion, with a dividend yield of 2.15% and a five-year annualized dividend growth rate of 11.63%. The company has consistently increased its dividends for the past 18 years [19][20]

Core Viewpoint - CNA Financial Corporation is experiencing strong investor confidence, with its stock trading near a 52-week high and showing solid upward momentum, indicating potential for further price appreciation [1][2]. Company Performance - The company has a market capitalization of $13.23 billion and has seen its shares gain 15.4% year-to-date, although this is below the industry's growth of 30.9% [2]. - The Zacks Consensus Estimate projects a 1.2% year-over-year increase in earnings per share for 2024, with revenues expected to reach $12.52 billion, reflecting a 6.3% improvement [3]. - The trailing 12-month Return on Equity (ROE) stands at 13.3%, significantly higher than the industry average of 7.6% [4]. Growth Drivers - CNA Financial's premium growth is supported by solid retention rates, favorable renewal premium changes, and new business growth across its Specialty, Commercial, and International segments [5]. - Net investment income is expected to benefit from fixed-income securities and other investments, with a focus on diversified investment-grade corporates and highly rated municipal securities [6]. - The company maintains a strong balance sheet with a statutory surplus of $11.3 billion and a conservative capital structure, ensuring liquidity and stability [7]. Shareholder Returns - Consistent cash flow generation and strong underwriting performance enable CNA to distribute wealth to shareholders, with a 10-year compound annual growth rate (CAGR) of 5.8% in quarterly dividends [8]. Challenges - CNA Financial faces risks from catastrophe losses due to natural disasters, which can induce volatility in results [9]. - Rising expenses, particularly from increasing net incurred claims and benefits, may impact overall profitability [9]. Industry Comparisons - Investors may consider other property and casualty insurers with better rankings, such as First American Financial Corporation, Mercury General Corporation, and The Travelers Companies, which have shown strong earnings growth and stock performance [10][11][12].

CNA Financial (NYSE: CNA ) is one of the stocks I have held for a long time. I am still a proud shareholder of the property and casualty insurance carrier, which is largely owned by LoewsThe CrickAnt is an actuary for an insurance company utilizing his work experience to do analysis on insurance and reinsurance companies. He is a contributing author to the investing group Cash Flow Club where along with Darren McCammon and Jonathan Weber, they focus on company cash flows and their access to capital. Core fe ...

Core Insights - CNA Financial Corporation reported third-quarter 2024 core earnings of $1.08 per share, exceeding the Zacks Consensus Estimate by 2.9% and reflecting a year-over-year increase of 1.9% [1] - Total operating revenues reached $3.2 billion, an 8.8% increase year over year, driven by higher premiums and net investment income, surpassing the Zacks Consensus Estimate by 2.3% [2] - Net investment income rose 13.2% year over year to $626 million, attributed to higher income from fixed-income securities and limited partnerships [3] Financial Performance - Net written premiums for Property & Casualty Operations increased 8% year over year to $2.4 billion, supported by an 85% retention rate and a 5% renewal premium change [2] - Total claims, benefits, and expenses increased 8% to $3.3 billion, primarily due to higher insurance claims and policyholders' benefits [4] - Catastrophe losses amounted to $143 million, compared to $94 million in the same quarter last year, while underwriting income declined 48% year over year to $68 million [4] Segment Results - Specialty's net written premiums increased 4% year over year to $862 million, with a combined ratio deteriorating by 290 basis points to 93 [5] - Commercial's net written premiums rose 14% year over year to $1.2 billion, with a combined ratio deteriorating by 130 basis points to 100.2 [6] - Life & Group's net earned premiums were $110 million, down 1.8% year over year, while the core loss narrowed to $9 million from a loss of $29 million in the previous year [7] Financial Metrics - The core return on equity remained flat year over year at 9.4%, with book value per share at $46.50, a 0.2% increase from the end of 2023 [8] - Net cash flow from operating activities decreased by 9.7% to $748 million in the quarter [9] Dividend Announcement - CNA Financial's board approved a quarterly dividend of 44 cents per share, scheduled for payment on December 5 to shareholders as of November 18 [10]

Core Viewpoint - CNA Financial reported quarterly earnings of $1.08 per share, exceeding the Zacks Consensus Estimate of $1.05 per share, and showing a slight increase from $1.06 per share a year ago, indicating a 2.86% earnings surprise [1] Financial Performance - The company posted revenues of $3.23 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.29%, and reflecting a year-over-year increase from $2.97 billion [2] - Over the last four quarters, CNA Financial has exceeded consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - CNA Financial shares have increased approximately 12.3% since the beginning of the year, while the S&P 500 has gained 20.1% [3] - The current consensus EPS estimate for the upcoming quarter is $1.23 on revenues of $3.19 billion, and for the current fiscal year, it is $4.55 on revenues of $12.52 billion [7] Industry Outlook - The Insurance - Property and Casualty industry is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook as the top 50% of Zacks-ranked industries tend to outperform the bottom 50% by more than 2 to 1 [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 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 | --- | --- | |-------------------------------------------------------------------------------------|------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) October 21, 2024 CNA FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) | --- | --- | --- | |------------------------------------|-----------------------------------------------------------------------------------------------------------|-----------------------| | Delaw ...

Net income up 10% to $283 million versus $258 million in the prior year quarter; core income of $293 million versus $289 million in the prior year quarter. Year to date core income up 6% to a record $974 million. P&C core income of $346 million versus $351 million, reflects the largely offsetting impacts of higher catastrophe losses and higher investment income. Life & Group core loss of $9 million versus $29 million in the prior year quarter, reflects higher investment income. Net investment income up 13% ...

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for CNA Financial, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Company Summary - CNA Financial is expected to report quarterly earnings of $1.11 per share, reflecting a year-over-year increase of 4.7% [3]. - Projected revenues for the quarter are $3.15 billion, which is a 6.3% increase from the previous year [3]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. Earnings Surprise Prediction - The Most Accurate Estimate for CNA Financial is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -5.41%, suggesting a bearish outlook from analysts [10]. - The stock currently holds a Zacks Rank of 3 (Hold), complicating predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, CNA Financial was expected to post earnings of $1.21 per share but delivered $1.19, resulting in a surprise of -1.65% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [13]. Industry Context - In the Zacks Insurance - Property and Casualty industry, Arch Capital Group is expected to report earnings of $1.98 per share, indicating a year-over-year decline of 14.3% [17]. - Arch Capital's revenue is projected at $4.04 billion, a 14.9% increase from the previous year [17]. - Despite a 1% downward revision in the consensus EPS estimate for Arch Capital, a higher Most Accurate Estimate results in an Earnings ESP of 7.91%, suggesting a likely earnings beat [18].

CHICAGO, Oct. 21, 2024 /PRNewswire/ -- CNA Financial Corporation (NYSE: CNA) today announced that it expects to report pretax net catastrophe losses in the third quarter 2024 of $143 million. Approximately 75% of the catastrophe losses are associated with four larger events, including $55 million from Hurricane Helene. The remaining approximately $35 million of losses is spread across a number of additional events occurring during the quarter. Catastrophe losses are comprised of $127 million in the Commerci ...