CNA Financial Corporation Fourth Quarter 2025 Results February 09, 2026 Notices and Disclaimers Forward Looking Statements The statements made in the course of this presentation and/or contained in the presentation materials may include statements that relate to anticipated future events (forward-looking statements) rather than actual present conditions or historical events. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally ...

Core Insights - The company reported record core income of $409 million for the third quarter, driven by strong underwriting gains and higher net investment income [1] - Year-to-date core income exceeded $1 billion for the first time, indicating robust financial performance [1] - Underwriting income reached $194 million, nearly tripling compared to the same quarter last year, benefiting from low catastrophe losses [1] Financial Performance - The net written premiums grew by 3%, reflecting the company's ability to identify growth opportunities while maintaining strong underwriting discipline [1] - Operating cash flow remained strong, with net investment income increasing by $12 million year-over-year to $638 million, attributed to improved fixed income results [1] Combined Ratio Analysis - The P&C all-in combined ratio was reported at 92.8% for the third quarter, including $41 million in catastrophe losses, which contributed 1.5 points to the ratio [2] - The underlying combined ratio was 91.3%, with an underlying loss ratio of 61.9%, slightly higher than previous periods, indicating a cautious approach to market conditions [2] - The expense ratio was effectively managed at 29.1%, showcasing the company's operational efficiency [2]

Core Insights - The Travelers Companies (TRV) reported a third-quarter 2025 core income of $8.14 per share, exceeding the Zacks Consensus Estimate by 35.4% and reflecting a 55% year-over-year increase [1][8] - Total revenues rose 5% year over year to $12.44 billion, driven by higher premiums and net investment income, surpassing the Zacks Consensus Estimate by 0.7% [2][3] - The underwriting gain doubled year over year to $1.4 billion, with a consolidated underlying combined ratio of 83.9, improving by 170 basis points [4][5] Financial Performance - Pre-tax net investment income increased 14% year over year to $1.03 billion, attributed to growth in average invested assets and higher yields [3][8] - Catastrophe losses were reported at $402 million, significantly lower than the $939 million loss in the same quarter last year [3] - Core return on equity expanded by 600 basis points to 22.6%, with adjusted book value per share rising 15% year over year to $150.55 [5] Segment Analysis - Business Insurance segment saw net written premiums increase by 3% year over year to approximately $5.67 billion, with strong growth in the core Middle Market business [6][10] - Bond & Specialty Insurance net written premiums grew by 1% year over year to $1 billion, supported by strength in Business Insurance [8][9] - Personal Insurance net written premiums remained stable at $4.71 billion, with a significant improvement in the combined ratio to 81.3, driven by lower catastrophe losses [11][12] Shareholder Returns - The company returned $878 million to shareholders in Q3 2025, including $628 million used for share repurchases [13] - A quarterly dividend of $1.10 per share was announced, payable on December 31, 2025, to shareholders of record by December 10, 2025 [13]

Financial Highlights - Net income decreased by 6% from $317 million to $299 million, while core income increased by 3% from $326 million to $335 million[6] - Net investment income increased by 7% to $662 million pretax, driven by increases in both fixed income securities and limited partnerships/common stock[6] - The book value per share excluding AOCI increased by 4% from year-end 2024, adjusting for $2.92 of dividends per share paid[6] Property & Casualty Operations - The P&C combined ratio improved slightly from 948% to 941%, with catastrophe losses impacting 24 points compared to 35 points in the prior year quarter[6] - P&C segments, excluding third-party captives, experienced gross written premium growth of 5% and net written premium growth of 6%[6] - The underlying combined ratio for P&C was 917%, compared to 916% in the prior year quarter[6] Segment Performance - Specialty segment GWP ex third party captives increased by 3% from $984 million to $1013 million[10] - Commercial segment GWP ex third party captives increased by 6% from $1802 million to $1903 million[12] - International segment NWP increased by 9% from $359 million to $391 million[14] Investment Portfolio and Capital - Fixed income securities net investment income increased from $520 million to $544 million[19] - Limited Partnership & Common Stock net investment income increased from $78 million to $100 million[22] - The company maintains a high-quality investment portfolio, with 88% of total invested assets in fixed income securities and an average credit rating of "A"[30]

Core Financial Performance - CNA Financial Corporation reported a net income of $299 million, or $1.10 per share, for Q2 2025, down from $317 million, or $1.17 per share, in the same quarter last year [1][6] - Core income increased to $335 million, or $1.23 per share, compared to $326 million, or $1.19 per share, in the prior year quarter, reflecting a 3% growth [1][6] - Net investment losses for the quarter were $36 million, compared to $9 million in the prior year quarter [1][6] Property & Casualty Segment - The Property & Casualty (P&C) segment generated core income of $448 million, an increase of $68 million from the prior year quarter, driven by higher net investment income and improved underwriting results [2][6] - P&C segments, excluding third-party captives, saw gross written premium growth of 5% and net written premium growth of 6%, attributed to a renewal premium change of +5% and new business growth of 8% [2][9] - The P&C combined ratio improved to 94.1%, down from 94.8% in the prior year quarter, with catastrophe losses of $62 million compared to $82 million in the previous year [6][8] Life & Group Segment - The Life & Group segment reported core income of $1 million for Q2 2025, compared to a core loss of $1 million in the prior year quarter, indicating a turnaround in performance [3][16] Corporate & Other Segment - The Corporate & Other segment experienced a core loss of $114 million, worsening from a loss of $53 million in the prior year quarter, primarily due to an $88 million after-tax charge related to legacy mass tort [4][19] Investment Income - Net investment income increased by 7% to $662 million pretax, driven by a $22 million increase from fixed income securities and a $22 million increase from limited partnerships and common stock [6][20] - The increase in net investment income reflects a larger invested asset base and favorable reinvestment rates [20] Stockholders' Equity and Dividends - Stockholders' equity rose to $10.7 billion, a 1% increase from year-end 2024, primarily due to net income and improvements in net unrealized investment losses [21] - The company declared a quarterly dividend of $0.46 per share, payable on September 4, 2025 [4][6]