CNA Financial Q3 Earnings Beat Estimates on Solid Underwriting

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]