CNA Financial Corporation reported a decline in first-quarter earnings for 2025, citing higher catastrophe-related losses and reserve development, though the insurer recorded continued premium growth and stable underwriting performance across its core segments.
Net income for the quarter was US$274 million, or US$1.00 per share, compared to US$338 million, or US$1.24 per share, in the same period last year. Core income dropped to US$281 million, or US$1.03 per share, from US$355 million, or US$1.30 per share, year over year.
The company’s Property & Casualty (P&C) operations posted core income of US$311 million, down US$61 million from the prior-year period. CNA attributed the change to lower underwriting results, partially offset by an increase in net investment income. The P&C combined ratio was 98.4%, including 3.8 points of catastrophe losses, mainly related to wildfires in California. The underlying combined ratio, which excludes catastrophes and reserve development, was 92.1%.
P&C premium growth remained steady, with gross written premiums excluding captives rising 7%, and net written premiums increasing 9%. New business was up 7% to US$565 million, supported by an average rate increase of 4% and a renewal premium change of 6%. Retention held at 86%. Rate increases were more pronounced in social inflation-affected segments, with excess casualty up three points to 14%, and specialty up two points to 3%.
Meanwhile, CNA’s Life & Group segment reported core income of US$6 million, slightly higher than the US$5 million recorded in the first quarter of 2024. The Corporate & Other segment posted a core loss of US$36 million, compared to US$22 million in the same period last year, primarily due to a US$17 million after-tax charge linked to adverse reserve development for legacy mass tort claims.
Net investment income decreased by US$5 million year over year, as gains in fixed income returns were offset by lower equity performance. The company recorded net investment losses of US$7 million for the quarter, down from US$17 million in Q1 2024.
CNA’s CEO Douglas M. Worman said the insurer maintained its underlying underwriting profitability despite elevated industry-wide catastrophe losses.
“Each of our operating segments produced growth and stable results this quarter,” he noted.
The company’s book value per share excluding accumulated other comprehensive income (AOCI) rose 2% from year-end 2024 to US$44.58, adjusting for US$2.46 in dividends per share. CNA’s total stockholders’ equity stood at US$10.3 billion as of March 31, a 2% decline primarily attributed to dividend distributions. Statutory capital and surplus for the Combined Continental Casualty Companies was reported at US$11.0 billion.
CNA declared a quarterly dividend of US$0.46 per share, payable on June 5, 2025, to shareholders of record as of May 19.
