CNA Financial’s Q1 Earnings Decline Amid Catastrophe Losses
CNA Financial Corporation reported a decline in its first-quarter earnings for 2025, citing higher catastrophe-related losses and reserve development. Despite this, the insurer recorded continued premium growth and stable underwriting performance across its core segments.
Net income for the quarter stood at $274 million, or $1.00 per share, down from $338 million, or $1.24 per share, in the same period last year. Core income dropped to $281 million, or $1.03 per share, from $355 million, or $1.30 per share, year over year.
Property & Casualty Operations
The company’s Property & Casualty (P&C) operations posted core income of $311 million, a decrease of $61 million from the prior-year period. CNA attributed this 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 California wildfires. The underlying combined ratio, excluding 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 $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 segments affected by social inflation, with excess casualty up three points to 14%, and specialty up two points to 3%.
Other Business Segments
CNA’s Life & Group segment reported core income of $6 million, slightly higher than the $5 million recorded in Q1 2024. The Corporate & Other segment posted a core loss of $36 million, compared to $22 million in the same period last year, primarily due to a $17 million after-tax charge linked to adverse reserve development for legacy mass tort claims.
Financial Highlights
Net investment income decreased by $5 million year over year, as gains in fixed income returns were offset by lower equity performance. The company recorded net investment losses of $7 million for the quarter, down from $17 million in Q1 2024. CNA’s CEO Douglas M. Worman noted that the insurer maintained its underlying underwriting profitability despite elevated industry-wide catastrophe losses.
The company’s book value per share (excluding accumulated other comprehensive income) rose 2% from year-end 2024 to $44.58, adjusting for $2.46 in dividends per share. CNA’s total stockholders’ equity stood at $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 $11.0 billion.
CNA declared a quarterly dividend of $0.46 per share, payable on June 5, 2025, to shareholders of record as of May 19, 2025.
