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.
Financial Highlights
The company’s 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.
Property & Casualty Operations
CNA’s Property & Casualty (P&C) operations posted core income of US$311 million, down US$61 million from the prior-year period. The decrease was attributed 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 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%.
Segment Performance
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.
Management Commentary
CNA’s CEO Douglas M. Worman stated that 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.
Capital Position and Dividend
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.
