CNA Financial Corporation reported in the third-quarter 2024 net income of $283 million, or $1.04 per share, an increase from $258 million, or $0.95 per share, in the same quarter last year.
The quarter’s net investment losses were $7 million, down from $31 million in the prior year quarter. Core income for the quarter reached $293 million, or $1.08 per share, up from $289 million, or $1.06 per share, a year earlier.
The property and casualty (P&C) segments contributed $346 million in core income, a slight decline of $5 million compared to the previous year, influenced by offsetting effects of higher catastrophe losses and increased investment income.
The P&C segments, excluding third-party captives, recorded gross written premium growth of 9% and net written premium growth of 8%. This growth was supported by a 15% rise in new business, a retention rate of 85%, and a renewal premium change of 5%.
In the life and group segment, the core loss narrowed to $9 million for the third quarter, improving from a core loss of $29 million in the same quarter of 2023. The corporate and other segment reported a core loss of $44 million, compared to $33 million the previous year.
CNA’s board declared a quarterly dividend of $0.44 per share, to be paid on December 5, 2024, to shareholders on record as of November 18, 2024.
Chairman and CEO Dino E Robusto (pictured above) highlighted the results, noting that core income increased to $293 million for the quarter, with year-to-date core income reaching a record $974 million.
“Net investment income was up 13% and the P&C all-in combined ratio was 97.2%, inclusive of pretax catastrophe losses of $143 million or 5.8 points which is consistent with our third quarter average over the last five years.,” he said.
The underlying combined ratio was 91.6%, marking the 15th consecutive quarter below 92%, with commercial achieving a record low underlying combined ratio of 90.7%. Gross written premium, excluding captives, increased by 9%, while net written premium rose by 8%, each representing the strongest quarterly growth this year.
Renewal premium change in the US increased by one point to 6%, with a two-point increase for commercial (excluding workers' compensation) to 10%, while the US rate change remained stable at 4%.
New business expanded by 15%, the highest increase this year, with strong contributions from both Commercial and International. P&C retention remained steady at 85% for the quarter.
Robusto commented on the company’s ability to maintain robust renewal pricing in lines affected by social inflation, which he noted continues to outpace loss cost trends.
“We remain optimistic about our abilities to capitalise on the favourable market conditions we expect to persist in many classes of business,” Robusto said.
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