CNA Financial Q4 Earnings & Revenues Top Estimates, Dividend Raised

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]