Why Is CNA Financial (CNA) Down 2.5% Since Last Earnings Report?

Core Insights - CNA Financial's Q4 2025 core earnings were $1.16 per share, missing the Zacks Consensus Estimate by 3.3% and reflecting a 7.2% year-over-year decrease [3] - Total operating revenues reached $3.4 billion, a 3.8% increase year-over-year, but also missed the Zacks Consensus Estimate by 1.2% [4] - The company raised its quarterly dividend by 4% to 48 cents per share and approved a special dividend of $2.00 per share [13] Financial Performance - Net written premiums for Property & Casualty Operations increased by 2% year-over-year to $2.8 billion, while total claims, benefits, and expenses rose by 6% to $3.4 billion [4][6] - Net investment income grew by 1.4% year-over-year to $653 million, driven by higher income from fixed income securities [5] - The combined ratio deteriorated by 70 basis points year-over-year to 93.8, indicating increased underwriting expenses [7] Segment Analysis - Specialty's net written premiums decreased by 2% year-over-year to $914 million, while Commercial's net written premiums increased by 4% to $1.5 billion [8] - International's net written premiums rose by 1% year-over-year to $371 million, with an improved combined ratio of 85.3 [9] - Life & Group's net earned premiums fell by 2.7% year-over-year to $105 million, resulting in a core loss of $29 million [9][10] Full-Year Overview - For the full year 2025, core earnings were $4.93 per share, a 2% increase from 2024, while revenues totaled $13.4 billion, up 5.8% year-over-year [14] - The core return on equity contracted by 90 basis points year-over-year to 10%, with book value per share increasing by 10.5% to $42.93 [12] Market Outlook - Estimates for CNA Financial have trended upward recently, with a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [17] - The stock has a poor Growth Score of F and a value score of A, placing it in the top 20% for value investment strategy [16]