CNA Financial (CNA) Up 4.2% Since Last Earnings Report: Can It Continue?

Core Insights - CNA Financial reported strong Q3 2025 core earnings of $1.50 per share, exceeding estimates by 20% and reflecting a 39% year-over-year increase [3] - The company's total operating revenues reached $3.4 billion, a 6.3% increase year-over-year, although it slightly missed the consensus estimate [4] - The underwriting income surged nearly threefold to $194 million, driven by lower catastrophe losses [6] Financial Performance - Net written premiums for Property & Casualty Operations rose 3.2% year-over-year to $2.4 billion, supported by a renewal premium change of over 4% [4] - Net investment income increased by 2% year-over-year to $638 million, driven by higher income from fixed income securities [5] - Total claims, benefits, and expenses rose 1.4% to $3.3 billion, primarily due to higher insurance claims and operating expenses [6] 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 [8] - Commercial's net written premiums grew by 2% year-over-year to $1.2 billion, with an improved combined ratio of 92.7 [8] - International's net written premiums surged 15% year-over-year to $319 million, with a combined ratio improvement to 91.8 [9] Financial Update - The core return on equity expanded by 380 basis points year-over-year to 13.2%, and book value per share increased by 8% to $46.30 [11] - Statutory capital and surplus for the Combined Continental Casualty Companies rose by 3.3% to $11.5 billion [11] - Net cash flow from operating activities decreased by 3.7% to $720 million [11] Dividend Update - CNA Financial's board approved a quarterly dividend of 46 cents per share, payable on December 4 to shareholders as of November 17 [12] Outlook - Estimates for CNA Financial have trended upward, with a consensus estimate shift of 11.11% [13] - The company holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [15] Industry Comparison - CNA Financial operates within the Zacks Insurance - Property and Casualty industry, where Berkshire Hathaway B has gained 3.9% over the past month [16] - Berkshire Hathaway B reported revenues of $94.97 billion, reflecting a year-over-year change of +2.1% [17]