CNA(US:CNA)2025-02-10 11:13Financial Performance - Net earned premiums increased by 8% to $2,679 million for Q4 2024, compared to $2,479 million in Q4 2023, and for the full year, it rose to $10,211 million from $9,480 million, also an 8% increase [4]. - Net investment income grew by 5% to $644 million in Q4 2024, and for the full year, it increased by 10% to $2,497 million compared to $2,264 million in 2023 [4]. - Total revenues for Q4 2024 were $3,689 million, a 5% increase from $3,507 million in Q4 2023, while total revenues for the full year reached $14,270 million, up 7% from $13,299 million [4]. - Net income for Q4 2024 was $21 million, a significant decrease of 94% from $367 million in Q4 2023, and for the full year, net income fell by 20% to $959 million from $1,205 million [4]. - Core income for Q4 2024 was $342 million, slightly down from $362 million in Q4 2023, while for the full year, core income increased to $1,316 million from $1,284 million [6]. Assets and Investments - Total assets as of December 31, 2024, were $66,492 million, up from $64,711 million in 2023, reflecting a growth of approximately 2.8% [8]. - Total investments increased to $47,482 million in 2024 from $46,562 million in 2023, marking a growth of 2% [8]. - Total investments as of December 31, 2024, amounted to $47,482 million, with net unrealized losses of $2,325 million [20]. - Fixed maturity securities totaled $41,111 million, reflecting a decrease in carrying value of $2,325 million compared to the previous quarter [20]. - Corporate and other bonds within fixed maturity securities were valued at $24,944 million, with unrealized losses of $882 million [20]. Underwriting and Premiums - Gross written premiums increased by 5% to $3,970 million for the three months ended December 31, 2024, compared to $3,765 million in 2023 [10]. - Net written premiums rose by 10% to $2,752 million for the three months ended December 31, 2024, up from $2,508 million in 2023 [10]. - Core income increased by 4% to $451 million for the three months ended December 31, 2024, compared to $434 million in 2023 [10]. - The underwriting gain decreased by 4% to $178 million for the three months ended December 31, 2024, down from $186 million in 2023 [10]. - New business in the Property & Casualty segment increased by 8% to $591 million for the three months ended December 31, 2024, compared to $547 million in 2023 [10]. Ratios and Returns - The company reported a return on equity of 0.8% for Q4 2024, down from 15.9% in Q4 2023, while the full-year return on equity was 9.4%, compared to 13.1% in 2023 [6]. - The combined ratio for the Property & Casualty segment was 93.1% for the three months ended December 31, 2024, compared to 92.1% in 2023 [10]. - The loss & LAE ratio for the Property & Casualty segment was 62.8% for the three months ended December 31, 2024, compared to 60.6% in 2023 [10]. - The expense ratio for the Specialty segment increased to 33.4% for the three months ended December 31, 2024, compared to 32.5% in 2023 [12]. - The combined ratio for the Commercial segment improved to 92.3% in Q4 2024 from 92.9% in Q4 2023, indicating better underwriting performance [14]. Claims and Reserves - Claim and claim adjustment expense reserves at the end of the period totaled $19,263 million, with gross reserves of $24,976 million [33]. - The net incurred claim and claim adjustment expenses for the twelve months ended December 31, 2024, were $6,411 million, up from $6,163 million in 2023 [33]. - Incurred claims and policyholders' benefits for the three months ended December 31, 2024, were $335 million, with a decrease in total reserves to $13,699 million by the end of the period [34]. - The change in discount rate assumptions and other adjustments resulted in a decrease of $931 million in total reserves for the three months ended December 31, 2024 [34]. - The net claim and claim adjustment expense payments for the three months ended December 31, 2024, were $(1,345) million, compared to $(1,345) million in the previous year [33]. Management and Metrics - Management utilizes various metrics such as renewal premium change, rate, retention, and new business to evaluate operating trends [37]. - Underwriting gain (loss) is monitored using GAAP financial results, with net earned premiums less total insurance expenses as a key measure [37]. - The company reports core income (loss) to assess segment performance, excluding net investment gains or losses and pension settlement transaction effects [38]. - The loss ratio, expense ratio, and combined ratio are key metrics used to evaluate the performance of the Specialty, Commercial, and International segments [38]. - The underlying underwriting gain (loss) excludes catastrophe losses and development-related items, providing a clearer view of underwriting profitability [39].