-- Net income of $211 million versus $274 million in the prior year quarter;
core income of $225 million versus $281 million in the prior year
quarter.
-- P&C core income of $248 million versus $311 million, reflects lower
underlying underwriting results and unfavorable prior period development
partially offset by higher net investment income.
-- Life & Group core loss of $9 million versus core income of $6 million in
the prior year quarter.
-- Corporate & Other core loss of $14 million versus $36 million in the
prior year quarter.
-- Net investment income of $610 million, reflects an $18 million increase
from fixed income securities and other investments to $568 million and a
$12 million decrease from limited partnerships and common stock to $42
million.
-- P&C combined ratio of 102.2%, compared with 98.4% in the prior year
quarter, including a 3.6 point impact related to catastrophes compared
with 3.8 points in the prior year quarter. The current year quarter also
includes an unfavorable impact of 4.1 points from net prior period
development driven by excess casualty and professional E&O lines in
recent accident years, compared to 2.5 points in the prior year quarter.
-- Catastrophe impacts of $97 million pretax in both the current and prior
year quarters.
-- P&C underlying combined ratio was 94.5%, compared with 92.1% in the prior
year quarter. P&C underlying loss ratio was 64.1% and the expense ratio
was 29.9%.
-- P&C segments generated net written premium growth of 1% in the quarter.
P&C renewal premium change of +3%, with written rate of +2%.
-- Book value per share of $40.13; book value per share excluding AOCI of
$45.12, a 1% increase from year-end 2025 adjusting for $2.48 of dividends
per share paid.
-- Board of Directors declares regular quarterly cash dividend of $0.48 per
share.
CHICAGO, May 4, 2026 /PRNewswire/ -- CNA Financial Corporation $(CNA)$ today announced first quarter 2026 net income of $211 million, or $0.78 per share, versus $274 million, or $1.00 per share, in the prior year quarter. Net investment losses for the quarter were $14 million compared to $7 million in the prior year quarter. Core income for the quarter was $225 million, or $0.83 per share, versus $281 million, or $1.03 per share, in the prior year quarter.
Our Property & Casualty segments delivered core income of $248 million for the first quarter of 2026, a decrease of $63 million compared to the prior year quarter reflecting lower underlying underwriting results and unfavorable prior period development partially offset by higher net investment income. P&C segments generated net written premium growth of 1%.
Our Life & Group segment produced a core loss of $9 million for the first quarter of 2026 versus core income of $6 million in the prior year quarter.
Our Corporate & Other segment reported a core loss of $14 million for the first quarter of 2026 versus $36 million in the prior year quarter.
CNA Financial declared a quarterly cash dividend of $0.48 per share, payable June 4, 2026 to stockholders of record on May 18, 2026.
Results for the Three Months
Ended March 31
($ millions, except per share data) 2026 2025
------------------ ------------------
Net income $ 211 $ 274
Core income (a) 225 281
Net income per diluted share $ 0.78 $ 1.00
Core income per diluted share 0.83 1.03
March 31, 2026 December 31, 2025
---------------- -------------------
Book value per share $ 40.13 $ 42.93
Book value per share excluding AOCI 45.12 46.99
(a) Management utilizes the core income (loss) financial measure to monitor
the Company's operations. Please refer herein to the Reconciliation of
GAAP Measures to Non-GAAP Measures section of this press release for
further discussion of this non-GAAP measure.
"In the first quarter we achieved $225 million of core income buoyed by strong investment income and reinforcing our unwavering focus on underwriting discipline. The fundamentals of our business remain strong as we execute deliberate strategies to optimize our portfolio at a time when the industry is experiencing pressure on growth, rate and loss cost trends.
The P&C all-in combined ratio was 102.2% in the quarter and included 3.6 points of catastrophe impact and 4.1 points of prior period development. We took decisive action this quarter to add additional prudence to P&C reserves in recent accident years on excess casualty in Commercial and professional E&O in Specialty, which we view as fundamentally appropriate given the current environment. Our underlying loss ratio of 64.1% also reflects this additional level of prudence, and our underlying combined ratio was 94.5%.
Net written premiums grew 1% in the quarter, new business grew 3% to $581 million and retention was 83%. We grew certain pockets of our portfolio that offer accretive returns and held the line in other areas we felt the market is not supporting an acceptable level of return.
Rate increase was 2% while renewal premium change was up 3% reflecting significant differentiation by business unit and class. For example, we continue to achieve double-digit rate increase in social inflation impacted classes of business, while national accounts property was down double-digit due to the competitive environment in that space.
Looking ahead to the rest of the year, we will continue to operate with confidence and prioritize underwriting discipline. We remain committed to executing in the marketplace as we implement specialized underwriting strategies to achieve profitable growth while maintaining the strength of our balance sheet in the current environment," said Douglas M. Worman, Chairman & Chief Executive Officer of CNA Financial Corporation.
Property & Casualty Operations
Results for the Three Months
Ended March 31
------------------------------------
($ millions) 2026 2025
Net written premiums $ 2,622 $ 2,606
NWP change (% year over year) 1%
Net earned premiums $ 2,598 $ 2,520
NEP change (% year over year) 3%
Underwriting (loss) gain $ (59) $ 40
Net investment income $ 375 $ 362
Core income $ 248 $ 311
Loss ratio 71.8% 67.8%
Less: Effect of catastrophe impacts 3.6 3.8
Less: Effect of unfavorable
development-related items 4.1 2.5
------------- -------------
Underlying loss ratio 64.1% 61.5%
============= =============
Expense ratio 29.9% 30.2%
Combined ratio 102.2% 98.4%
Underlying combined ratio 94.5% 92.1%
-- The underlying combined ratio increased 2.4 points as compared with the
prior year quarter, primarily the result of a 2.6 point increase in the
underlying loss ratio to 64.1%, with increases across each segment. The
expense ratio improved 0.3 points compared with the prior year quarter.
-- The combined ratio increased 3.8 points as compared with the prior year
quarter. Unfavorable net prior period development in the Specialty and
Commercial segments increased the loss ratio by 4.1 points in the current
quarter compared to 2.5 points in the prior year quarter. Catastrophe
impacts were $97 million in the quarter, inclusive of $9 million of
catastrophe-related reinsurance reinstatement premiums, compared with $97
million for the prior year quarter. The effect of catastrophe impacts on
the loss ratio was 3.6 points in the quarter compared with 3.8 points for
the prior year quarter.
Business Operating Highlights
Specialty
Results for the Three Months
Ended March 31
---------------------------------------
($ millions) 2026 2025
Net written premiums $ 834 $ 842
NWP change (% year over year) (1)%
Net earned premiums $ 852 $ 830
NEP change (% year over year) 3%
Underwriting (loss) gain $ (24) $ 42
Loss ratio 68.7% 61.4%
Less: Effect of catastrophe impacts -- --
Less: Effect of unfavorable
development-related items 5.9 1.3
--------------- --------------
Underlying loss ratio 62.8% 60.1%
=============== ==============
Expense ratio 33.6% 33.4%
Combined ratio 102.7% 95.1%
Underlying combined ratio 96.8% 93.8%
-- The underlying combined ratio increased 3.0 points as compared with the
prior year quarter. The underlying loss ratio increased 2.7 points as
compared with the prior year quarter reflecting loss cost trends
exceeding rate for certain lines in recent quarters. The expense ratio
increased 0.2 points as compared with the prior year quarter.
-- The combined ratio increased 7.6 points as compared with the prior year
quarter. Unfavorable net prior period development, driven by professional
errors & omissions (E&O) business in recent accident years, increased the
loss ratio by 5.9 points in the current quarter as compared with 1.3
points in the prior year quarter.
Commercial
Results for the Three Months
Ended March 31
----------------------------------------
($ millions) 2026 2025
Net written premiums $ 1,480 $ 1,498
NWP change (% year over year) (1)%
Net earned premiums $ 1,412 $ 1,380
NEP change (% year over year) 2%
Underwriting loss $ (49) $ (17)
Loss ratio 76.2% 73.0%
Less: Effect of catastrophe
impacts 6.4 6.3
Less: Effect of unfavorable
development-related items 4.0 3.8
--------------- ---------------
Underlying loss ratio 65.8% 62.9%
=============== ===============
Expense ratio 26.7% 27.6%
Combined ratio 103.5% 101.1%
Underlying combined ratio 93.1% 91.0%
-- The underlying combined ratio increased 2.1 points as compared with the
prior year quarter. The underlying loss ratio increased 2.9 points
compared with the prior year quarter as a result of increases in excess
casualty and workers' compensation. The expense ratio improved 0.9 points
primarily due to a favorable acquisition ratio.
-- The combined ratio increased 2.4 points as compared with the prior year
quarter. Unfavorable net prior period development, driven by excess
casualty in recent accident years, increased the loss ratio by 4.0 points
in the current quarter compared with 3.8 points in the prior year
quarter. Catastrophe impacts were $93 million in the quarter, inclusive
of $9 million of catastrophe-related reinsurance reinstatement premiums,
compared with $86 million for the prior year quarter. The effect of
catastrophe impacts on the loss ratio was 6.4 points in the quarter
compared with 6.3 points for the prior year quarter.
International
Results for the Three Months
Ended March 31
--------------------------------------
($ millions) 2026 2025
Net written premiums $ 308 $ 266
NWP change (% year over year) 16%
Net earned premiums $ 334 $ 310
NEP change (% year over year) 8%
Underwriting gain $ 14 $ 15
Loss ratio 61.0% 62.1%
Less: Effect of catastrophe impacts 1.2 3.6
Less: Effect of (favorable)
unfavorable development-related
items -- --
-------------- --------------
Underlying loss ratio 59.8% 58.5%
============== ==============
Expense ratio 34.9% 33.3%
Combined ratio 95.9% 95.4%
Underlying combined ratio 94.7% 91.8%
-- The underlying combined ratio increased 2.9 points as compared with the
prior year quarter. The expense ratio increased 1.6 points attributed to
higher employee related costs and acquisition costs partially offset by
net earned premium growth of 8%. The underlying loss ratio increased 1.3
points as compared with the prior year quarter driven by continued
pricing pressure.
-- The combined ratio increased 0.5 points as compared with the prior year
quarter. Catastrophe losses were $4 million, or 1.2 points of the loss
ratio in the quarter compared with $11 million or 3.6 points of the loss
ratio, for the prior year quarter.
-- Excluding currency fluctuations, net written premiums grew 7% for the
first quarter of 2026.
Life & Group
Results for the Three Months
Ended March 31
($ millions) 2026 2025
------------ ------------------
Net earned premiums $ 103 $ 106
Claims, benefits and expenses 344 330
Net investment income $ 224 $ 226
Core (loss) income $ (9) $ 6
Core results decreased $15 million for the first quarter of 2026 as compared with the prior year quarter. Results for the current year quarter reflect unfavorable morbidity partially offset by favorable persistency. Results for the prior year quarter reflected favorable persistency.
Corporate & Other
Results for the Three Months
Ended March 31
---------------------------------
($ millions) 2026 2025
--------------- ----------------
Insurance claims and policyholders'
benefits $ (17) $ 9
Interest expense 33 32
Net investment income 11 16
Core loss (14) (36)
Core loss improved $22 million for the first quarter of 2026 as compared with the prior year quarter. There was no prior period development in the current year quarter compared to a $17 million after-tax charge in the prior year quarter related to unfavorable prior period development associated with legacy mass tort.
Net Investment Income
Results for the Three Months
Ended March 31
--------------------------------
2026 2025
-------------- ----------------
Fixed income securities and other $ 568 $ 550
Limited partnership and common stock
investments 42 54
-------------- --------------
Net investment income $ 610 $ 604
============== ==============
Net investment income increased $6 million for the first quarter of 2026. The increase was driven by higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates partially offset by lower common stock returns.
Stockholders' Equity
Stockholders' equity of $10.9 billion decreased 7% from year-end 2025, primarily due to dividends paid to stockholders and an increase in net unrealized investment losses partially offset by net income.
Book value per share ex AOCI of $45.12 increased 1% from year-end 2025 adjusting for $2.48 of dividends per share.
As of March 31, 2026, statutory capital and surplus for the Combined Continental Casualty Companies was $11.1 billion.
About the Company
CNA is one of the largest U.S. commercial property and casualty insurance companies. Backed by more than 125 years of experience, CNA provides a broad range of standard and specialized insurance products and services for businesses and professionals in the U.S., Canada and Europe. For more information, please visit CNA at cna.com.
Contacts
Media: Analysts: Kelly Messina | Vice President, Ralitza K. Todorova | Vice President, Marketing Investor Relations & Rating Agencies 872-817-0350 312-822-3834
Earnings Remarks & Materials
A transcript of earnings remarks will be available on CNA's website at cna.com via the Investor Relations section. Remarks will include commentary from the Company's Chairman and Chief Executive Officer, Douglas M. Worman, and Chief Financial Officer, Scott R. Lindquist. An earnings presentation and financial supplement information related to the results will also be posted and available on the CNA website.
Definition of Reported Segments
-- Specialty provides management and professional liability and other
coverages through property and casualty products and services using a
network of retail and wholesale brokers, independent agencies and
managing general underwriters.
-- Commercial works with a network of retail and wholesale brokers and
independent agents to market a broad range of property and casualty
insurance products to all types of insureds targeting small business,
construction, middle market and other commercial customers.
-- International underwrites property and casualty coverages on a global
basis through a branch operation in Canada, a European business
consisting of insurance companies based in the U.K. and Luxembourg and
Hardy, our Lloyd's Syndicate.
-- Life & Group includes the individual and group run-off long-term care
businesses as well as structured settlement obligations not funded by
annuities related to certain property and casualty claimants.
-- Corporate & Other primarily includes certain corporate expenses,
including interest on corporate debt, and the results of certain property
and casualty business in run-off, including asbestos and environmental
pollution (A&EP), a legacy portfolio of excess workers' compensation
$(EWC)$ policies and legacy mass tort reserves.
Financial Measures
Management utilizes the following metrics in their evaluation of the Property & Casualty Operations.
These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).
-- Loss ratio is the percentage of net incurred claim and claim adjustment
expenses to net earned premiums.
-- Underlying loss ratio represents the loss ratio excluding
catastrophe-related reinstatement premiums, catastrophe losses and
development-related items.
-- Expense ratio is the percentage of insurance underwriting and acquisition
expenses, including the amortization of deferred acquisition costs, to
net earned premiums.
-- Dividend ratio is the ratio of policyholders' dividends incurred to net
earned premiums.
-- Combined ratio is the sum of the loss ratio, the expense and the dividend
ratio.
-- Underlying combined ratio is the sum of the underlying loss ratio, the
expense ratio and the dividend ratio.
The underlying loss ratio and the underlying combined ratio are deemed to be non-GAAP financial measures, and management believes some investors may find these ratios useful to evaluate our underwriting performance since they remove the impact of catastrophes, which are unpredictable as to timing and amount, and development-related items as they are not indicative of our current year underwriting performance. The components to reconcile the combined ratio and loss ratio to the underlying combined ratio and underlying loss ratio for Property & Casualty, Specialty, Commercial and International segments are set forth on pages 3, 4, 5 and 6, respectively.
Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes.
Rate represents the average change in price on policies that renew excluding exposure change.
Exposure represents the measure of risk used in the pricing of the insurance product. The change in exposure represents the change in premium dollars on policies that renew as a result of the change in risk of the policy.
Retention represents the percentage of premium dollars renewed, excluding rate and exposure changes, in comparison to the expiring premium dollars from policies available to renew.
New business represents premiums from policies written with new customers and additional policies written with existing customers.
Development-related items represents net prior year loss reserve and premium development, and includes the effects of interest accretion and change in allowance for uncollectible reinsurance.
Statutory capital and surplus represents the excess of an insurance company's admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices. Statutory capital and surplus as of the current period is preliminary.
The Company's investment portfolio is monitored by management through analysis of various factors including unrealized gains and losses on securities, portfolio duration and exposure to market and credit risk.
Reconciliation of GAAP Measures to Non-GAAP Measures
Management utilizes financial measures not in accordance with GAAP to monitor the Company's insurance operations and investment portfolio. The Company believes the presentation of these measures provides investors with a better understanding of the significant factors that comprise the Company's operating performance. Reconciliations of these measures to the most comparable GAAP measures follow below.
Reconciliation of Net Income (Loss) to Core Income (Loss)
Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses and gains or losses resulting from pension settlement transactions. Net investment gains or losses are excluded from the calculation of core income (loss) because they are generally driven by economic factors that are not necessarily reflective of our primary operations. The calculation of core income (loss) excludes gains or losses resulting from pension settlement transactions as they result from decisions regarding our defined benefit pension plans which are unrelated to our primary operations. Management monitors core income (loss) for each business segment to assess segment performance. Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure.
Results for the Three Months
Ended March 31
($ millions) 2026 2025
---------------- ----------------
Net income $ 211 $ 274
Less: Net investment losses (14) (7)
Core income $ 225 $ 281
================ ================
Reconciliation of Net Income (Loss) per Diluted Share to Core Income (Loss) per Diluted Share
Core income (loss) per diluted share provides management and investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core income (loss). Core income (loss) per diluted share is core income (loss) on a per diluted share basis.
Results for the Three Months
Ended March 31
2026 2025
---------------- ----------------
Net income per diluted share $ 0.78 $ 1.00
Less: Net investment losses (0.05) (0.03)
Core income per diluted share $ 0.83 $ 1.03
================ ================
Reconciliation of Net Income (Loss) to Underwriting Gain (Loss) and Underlying Underwriting Gain (Loss)
Underwriting gain (loss) is deemed to be a non-GAAP financial measure and is calculated pretax as net earned premiums less total insurance expenses, which includes insurance claims and policyholders' benefits, amortization of deferred acquisition costs and insurance related administrative expenses. Net income (loss) is the most directly comparable GAAP measure. Management believes some investors may find this measure useful to evaluate the profitability, before tax, derived from our underwriting activities which are managed separately from our investing activities.
Underlying underwriting gain (loss) is also deemed to be a non-GAAP financial measure, and represents pretax underwriting results excluding catastrophe-related reinstatement premiums, catastrophe losses and development-related items. Management believes some investors may find this measure useful to evaluate the profitability, before tax, derived from our underwriting activities, excluding the impact of catastrophes, which are unpredictable as to timing and amount, and development-related items as they are not indicative of our current year underwriting performance. The following tables present reconciliations of net income to core income, underwriting gain and underlying underwriting gain for our Property & Casualty Operations.
Results for the Three Months Ended March 31, 2026
Property &
Specialty Commercial International Casualty
--------------- -------------- --------------- --------------
(In millions)
Net income $ 95 $ 105 $ 36 $ 236
Net investment
losses, after tax 4 7 1 12
Core income $ 99 $ 112 $ 37 $ 248
Less:
Net investment
income 142 190 43 375
Non-insurance
warranty revenue
(expense) 18 -- -- 18
Other revenue
(expense),
including interest
expense (11) (2) (2) (15)
Income tax expense
on core income (26) (27) (18) (71)
--------------- -------------- --------------- --------------
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