CNA FINANCIAL ANNOUNCES SECOND QUARTER 2024 NET INCOME OF $1.17 PER SHARE AND CORE INCOME OF $1.19 PER SHARE
CNA Financial reported strong Q2 2024 results with net income up 12% to $317 million and core income up 6% to $326 million. Key highlights include:
- P&C core income increased to $380 million, driven by higher investment income
- Net investment income rose 7% to $618 million
- P&C combined ratio was 94.8%, with 3.5 points from catastrophe losses
- P&C segments saw 7% gross written premium growth and 6% net written premium growth
- Book value per share excluding AOCI increased 5% to $45.86
The company declared a quarterly dividend of $0.44 per share. Management expressed optimism about the latter half of the year, citing strong execution and a favorable fixed income investment environment.
CNA Financial ha riportato risultati solidi per il secondo trimestre del 2024 con un reddito netto in aumento del 12% a 317 milioni di dollari e un reddito core in crescita del 6% a 326 milioni di dollari. I punti salienti includono:
- Il reddito core P&C è aumentato a 380 milioni di dollari, sostenuto da un maggiore reddito da investimenti.
- Il reddito netto da investimenti è aumentato del 7% a 618 milioni di dollari.
- Il rapporto combinato P&C si è attestato al 94,8%, con 3,5 punti derivanti da perdite catastrofiche.
- I segmenti P&C hanno registrato una crescita delle prime lorde del 7% e una crescita delle prime nette del 6%.
- Il valore contabile per azione, escluse le AOCI, è aumentato del 5% a 45,86 dollari.
La società ha dichiarato un dividendo trimestrale di 0,44 dollari per azione. La direzione ha espresso ottimismo per la seconda metà dell'anno, citando un'esecuzione forte e un ambiente di investimento a reddito fisso favorevole.
CNA Financial informó resultados sólidos para el segundo trimestre de 2024 con un ingreso neto en aumento del 12% a 317 millones de dólares y un ingreso básico en crecimiento del 6% a 326 millones de dólares. Los aspectos más destacados incluyen:
- El ingreso básico de P&C aumentó a 380 millones de dólares, impulsado por un mayor ingreso por inversiones.
- El ingreso neto por inversiones aumentó un 7% a 618 millones de dólares.
- La relación combinada de P&C se situó en el 94,8%, con 3,5 puntos por pérdidas catastróficas.
- Los segmentos de P&C vieron un crecimiento del 7% en primas brutas escritas y un crecimiento del 6% en primas netas escritas.
- El valor contable por acción, excluyendo AOCI, aumentó un 5% a 45,86 dólares.
La compañía declaró un dividendo trimestral de 0,44 dólares por acción. La dirección expresó optimismo sobre la segunda mitad del año, citando una fuerte ejecución y un entorno de inversión en renta fija favorable.
CNA Financial은 2024년 2분기 실적을 발표하며 순이익이 12% 증가하여 3억 1,700만 달러에 달하고, 핵심 이익이 6% 증가하여 3억 2,600만 달러에 이르렀다고 보고했다. 주요 하이라이트는 다음과 같다:
- 손해보험(P&C) 핵심 이익이 투자 수익 증가로 인해 3억 8천만 달러로 증가했다.
- 순투자 수익은 7% 증가하여 6억 1,800만 달러에 도달했다.
- 손해보험(P&C)의 결합 비율은 94.8%로, 재해 손실로 3.5 포인트가 발생했다.
- 손해보험(P&C) 부문은 총 인수 보험료 7% 증가, 순 인수 보험료 6% 증가를 보였다.
- AOCI를 제외한 주당 장부 가치는 5% 증가하여 45.86 달러에 이르렀다.
회사는 주당 0.44 달러의 분기 배당금을 선언했다. 경영진은 강력한 실행력과 유리한 고정 수입 투자 환경을 언급하며 하반기에 대한 긍정적인 시각을 나타냈다.
CNA Financial a rapporté de solides résultats pour le deuxième trimestre 2024 avec un revenu net en hausse de 12 % à 317 millions de dollars et un revenu de base en hausse de 6 % à 326 millions de dollars. Parmi les points forts, on peut noter :
- Le revenu de base P&C a augmenté à 380 millions de dollars, soutenu par des revenus d'investissement plus élevés.
- Le revenu net des investissements a augmenté de 7 % pour atteindre 618 millions de dollars.
- Le ratio combiné P&C s'est établi à 94,8 %, avec 3,5 points dus à des pertes catastrophiques.
- Les segments P&C ont connu une croissance de 7 % des primes brutes souscrites et de 6 % des primes nettes souscrites.
- La valeur comptable par action, hors AOCI, a augmenté de 5 % pour atteindre 45,86 dollars.
L'entreprise a déclaré un dividende trimestriel de 0,44 dollar par action. La direction a exprimé son optimisme pour la seconde moitié de l'année, citant une exécution solide et un environnement d'investissement à revenu fixe favorable.
CNA Financial hat starke Ergebnisse für das zweite Quartal 2024 gemeldet, mit einem Nettogewinn, der um 12% auf 317 Millionen Dollar gestiegen ist und einem Kern-Gewinn, der um 6% auf 326 Millionen Dollar zugenommen hat. Zu den wichtigsten Highlights gehören:
- Der Kern-Gewinn der P&C-Sparte stieg auf 380 Millionen Dollar, unterstützt durch höhere Anlageerträge.
- Der netto-Anlageertrag stieg um 7% auf 618 Millionen Dollar.
- Die kombinierte Ratio der P&C-Sparte lag bei 94,8%, wobei 3,5 Punkte durch Katastrophenschäden verursacht wurden.
- Die P&C-Segmente verzeichneten ein Wachstum der brutto gezeichneten Prämien von 7% und ein Wachstum der netto gezeichneten Prämien von 6%.
- Der Buchwert pro Aktie, ohne AOCI, stieg um 5% auf 45,86 Dollar.
Das Unternehmen erklärte eine vierteljährliche Dividende von 0,44 Dollar pro Aktie. Das Management äußerte Optimismus für die zweite Jahreshälfte und verwies auf eine starke Umsetzung sowie ein günstiges Umfeld für festverzinsliche Anlagen.
- Net income increased 12% to $317 million
- Core income rose 6% to $326 million
- Net investment income up 7% to $618 million
- P&C segments saw 7% gross written premium growth and 6% net written premium growth
- Book value per share excluding AOCI increased 5% to $45.86
- Declared quarterly dividend of $0.44 per share
- P&C combined ratio increased to 94.8% from 93.8% in the prior year quarter
- Catastrophe losses were $82 million, up from $68 million in the prior year quarter
- Specialty segment's underlying combined ratio increased 1.9 points to 93.1%
- Commercial segment's combined ratio increased 0.7 points to 97.0%
CNA Financial's Q2 2024 results demonstrate solid performance and financial stability. The company reported a 12% increase in net income to
Key highlights include:
- P&C core income of
$380 million , up slightly from$374 million in the prior year quarter, driven by higher investment income but offset by increased catastrophe losses. - Net investment income increased by
7% to$618 million pretax, reflecting improved yields in the fixed income portfolio and strong returns from alternative investments. - P&C combined ratio of
94.8% , up from93.8% in the prior year quarter, primarily due to higher catastrophe losses. - Gross written premium growth of
7% and net written premium growth of6% in P&C segments, excluding third-party captives.
The company's ability to maintain a strong underwriting performance while growing premiums is commendable. The
However, investors should note the slight increase in the combined ratio and underlying combined ratio, which may indicate some pressure on underwriting profitability. The company's ability to navigate individual cycle dynamics and maintain pricing discipline will be important for sustained profitability in the competitive insurance market.
CNA Financial's Q2 2024 results reveal a nuanced picture of the insurance market dynamics. The company's performance across different segments provides valuable insights into current industry trends:
- Specialty segment: The increase in the underlying combined ratio to
93.1% from91.2% reflects ongoing rate pressure, a common challenge in the specialty insurance market. - Commercial segment: Strong growth with gross written premiums up 12%, indicating robust demand and potentially hardening market conditions in certain commercial lines.
- International segment: Relatively flat premium growth suggests a more competitive global market environment.
The overall P&C renewal premium change of
The catastrophe losses of
CNA's ability to maintain a strong retention rate of
CNA Financial's Q2 2024 results present several key points for investors to consider:
- Earnings Growth: The
12% increase in net income and6% rise in core income demonstrate the company's ability to grow earnings in a challenging environment. This consistent profitability is likely to be viewed positively by investors. - Investment Performance: The
7% increase in net investment income to$618 million is particularly noteworthy. The improved yields in the fixed income portfolio and strong returns from alternative investments highlight CNA's effective investment strategy in a rising interest rate environment. - Premium Growth: The
7% growth in gross written premiums and6% growth in net written premiums in P&C segments indicate strong market position and pricing power. The12% growth in the Commercial segment is especially impressive. - Underwriting Discipline: While the combined ratio increased slightly to
94.8% , it remains below 95%, indicating disciplined underwriting. The ability to maintain profitability while growing premiums is a positive sign for long-term value creation. - Capital Management: The
5% increase in book value per share excluding AOCI, adjusting for dividends, reflects effective capital management. The continuation of the quarterly dividend of$0.44 per share demonstrates commitment to shareholder returns.
From an investment perspective, CNA's solid performance, coupled with its strong market position and disciplined approach, makes it an attractive option in the insurance sector. However, investors should monitor the slight increase in the underlying combined ratio and the company's ability to navigate market cycles effectively.
The company's focus on classes with higher loss cost trends, such as auto and excess casualty, where rate changes are in the low double-digits, shows a proactive approach to maintaining profitability. This strategy could potentially lead to improved underwriting results in future quarters.
- Net income up
12% to$317 million $283 million 6% to$326 million $308 million 8% to a record$681 million - P&C core income of
$380 million $374 million - Net investment income up
7% to$618 million $33 million $540 million $10 million $78 million - P&C combined ratio of
94.8% , compared with93.8% in the prior year quarter, including 3.5 points of catastrophe loss impact compared with 3.1 points in the prior year quarter. P&C underlying combined ratio was91.6% compared with91.1% in the prior year quarter. P&C underlying loss ratio was60.6% and the expense ratio was30.7% . - P&C segments, excluding third party captives, generated gross written premium growth of
7% and net written premium growth of6% for the second quarter of 2024. P&C renewal premium change of +5% with written rate of +4% , consistent with the last two quarters. - Book value per share of
$36.46 $45.86 5% increase from year-end 2023 adjusting for$2.88 - Board of Directors declares regular quarterly cash dividend of
$0.44
Our Property & Casualty segments produced core income of
Our Life & Group segment produced core loss of
CNA Financial declared a quarterly dividend of
Results for the Three Months | Results for the Six Months | ||||||
($ millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||
Net income | $ 317 | $ 283 | $ 655 | $ 580 | |||
Core income (a) | 326 | 308 | 681 | 633 | |||
Net income per diluted share | $ 1.17 | $ 1.04 | $ 2.40 | $ 2.13 | |||
Core income per diluted share | 1.19 | 1.13 | 2.50 | 2.33 | |||
June 30, 2024 | December 31, 2023 | ||||
Book value per share | $ | 36.46 | $ | 36.52 | |
Book value per share excluding AOCI | 45.86 | 46.39 | |||
(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. |
"We produced outstanding results in the quarter with an
Despite the elevated industry catastrophe losses, the all-in combined ratio for overall P&C was
The P&C underlying combined ratio was
Gross written premium ex. captives was up
We continue to effectively navigate the individual cycle dynamics in the different areas of our business, growing where we see the best profitable opportunities. With strong execution and a continued favorable fixed income investment environment, we remain optimistic about the latter half of the year," said Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.
Property & Casualty Operations | ||||||||||||
Results for the Three | Results for the Six Months | |||||||||||
($ millions) | 2024 | 2023 | 2024 | 2023 | ||||||||
Gross written premiums ex. 3rd party captives | $ 3,203 | $ 2,986 | $ 6,139 | $ 5,710 | ||||||||
GWP ex. 3rd party captives change (% year over year) | 7 | % | 8 | % | ||||||||
Net written premiums | $ 2,674 | $ 2,513 | $ 5,064 | $ 4,760 | ||||||||
NWP change (% year over year) | 6 | % | 6 | % | ||||||||
Net earned premiums | $ 2,389 | $ 2,234 | $ 4,720 | $ 4,367 | ||||||||
NEP change (% year over year) | 7 | % | 8 | % | ||||||||
Underwriting gain | $ 124 | $ 138 | $ 250 | $ 268 | ||||||||
Net investment income | $ 361 | $ 332 | $ 718 | $ 633 | ||||||||
Core income | $ 380 | $ 374 | $ 752 | $ 720 | ||||||||
Underlying loss ratio | 60.6 | % | 59.9 | % | 60.6 | % | 59.9 | % | ||||
Effect of catastrophe impacts | 3.5 | 3.1 | 3.6 | 2.7 | ||||||||
Effect of development-related items | (0.3) | (0.4) | (0.3) | 0.2 | ||||||||
Loss ratio | 63.8 | % | 62.6 | % | 63.9 | % | 62.8 | % | ||||
Expense ratio | 30.7 | % | 30.9 | % | 30.4 | % | 30.8 | % | ||||
Combined ratio | 94.8 | % | 93.8 | % | 94.7 | % | 93.9 | % | ||||
Underlying combined ratio | 91.6 | % | 91.1 | % | 91.4 | % | 91.0 | % | ||||
- The underlying combined ratio increased 0.5 points as compared with the prior year quarter. The underlying loss ratio increased 0.7 points as compared with the prior year quarter. The expense ratio improved 0.2 points.
- The combined ratio increased 1.0 point as compared with the prior year quarter which reflects an underwriting gain of
$124 million $138 million $82 million $68 million - P&C segments, excluding third party captives, generated gross written premium growth of
7% and net written premium growth of6% .
Business Operating Highlights
Specialty | ||||||||||||
Results for the Three | Results for the Six Months | |||||||||||
($ millions) | 2024 | 2023 | 2024 | 2023 | ||||||||
Gross written premiums ex. 3rd party captives | $ 984 | $ 961 | $ 1,864 | $ 1,847 | ||||||||
GWP ex. 3rd party captives change (% year over year) | 2 | % | 1 | % | ||||||||
Net written premiums | $ 857 | $ 825 | $ 1,649 | $ 1,613 | ||||||||
NWP change (% year over year) | 4 | % | 2 | % | ||||||||
Net earned premiums | $ 831 | $ 812 | $ 1,645 | $ 1,609 | ||||||||
NEP change (% year over year) | 2 | % | 2 | % | ||||||||
Underwriting gain | $ 60 | $ 74 | $ 136 | $ 154 | ||||||||
Underlying loss ratio | 59.6 | % | 58.6 | % | 59.4 | % | 58.5 | % | ||||
Effect of catastrophe impacts | — | — | — | — | ||||||||
Effect of development-related items | (0.4) | (0.3) | (0.5) | (0.2) | ||||||||
Loss ratio | 59.2 | % | 58.3 | % | 58.9 | % | 58.3 | % | ||||
Expense ratio | 33.2 | % | 32.4 | % | 32.5 | % | 31.9 | % | ||||
Combined ratio | 92.7 | % | 90.9 | % | 91.7 | % | 90.4 | % | ||||
Underlying combined ratio | 93.1 | % | 91.2 | % | 92.2 | % | 90.6 | % | ||||
- The underlying combined ratio increased 1.9 points as compared with the prior year quarter. The underlying loss ratio increased 1.0 point primarily driven by continued rate pressure over the last several quarters. The expense ratio increased 0.8 points driven by higher acquisition costs.
- The combined ratio increased 1.8 points as compared with the prior year quarter. Favorable net prior period development improved the loss ratio by 0.4 points in the current quarter compared with 0.3 points of improvement in the prior year quarter.
- Gross written premiums, excluding third party captives, grew
2% and net written premiums grew4% for the second quarter of 2024.
Commercial | |||||||||||
Results for the Three | Results for the Six Months | ||||||||||
($ millions) | 2024 | 2023 | 2024 | 2023 | |||||||
Gross written premiums ex. 3rd party captives | $ 1,802 | $ 1,604 | $ 3,484 | $ 3,044 | |||||||
GWP ex. 3rd party captives change (% year over year) | 12 | % | % | 14 | % | ||||||
Net written premiums | $ 1,458 | $ 1,329 | $ 2,796 | $ 2,517 | |||||||
NWP change (% year over year) | 10 | % | % | 11 | % | ||||||
Net earned premiums | $ 1,247 | $ 1,120 | $ 2,449 | $ 2,166 | |||||||
NEP change (% year over year) | 11 | % | % | 13 | % | ||||||
Underwriting gain | $ 39 | $ 42 | $ 68 | $ 83 | |||||||
Underlying loss ratio | 62.0 | % | 61.5 | % | 62.0 | % | 61.5 | % | |||
Effect of catastrophe impacts | 6.1 | 5.2 | 6.4 | 4.7 | |||||||
Effect of development-related items | (0.1) | (0.5) | — | (0.3) | |||||||
Loss ratio | 68.0 | % | 66.2 | % | 68.4 | % | 65.9 | % | |||
Expense ratio | 28.5 | % | 29.6 | % | 28.4 | % | 29.8 | % | |||
Combined ratio | 97.0 | % | 96.3 | % | 97.3 | % | 96.2 | % | |||
Underlying combined ratio | 91.0 | % | 91.6 | % | 90.9 | % | 91.8 | % | |||
- The underlying combined ratio improved 0.6 points as compared with the prior year quarter. The expense ratio improved 1.1 points primarily driven by net earned premium growth of
11% . The underlying loss ratio increased 0.5 points as compared with the prior year quarter. - The combined ratio increased 0.7 points as compared with the prior year quarter. Catastrophe losses were
$76 million $59 million - Gross written premiums, excluding third party captives, grew
12% and net written premiums grew10% for the second quarter of 2024.
International | |||||||||||
Results for the Three | Results for the Six Months | ||||||||||
($ millions) | 2024 | 2023 | 2024 | 2023 | |||||||
Gross written premiums | $ 417 | $ 421 | $ 791 | $ 819 | |||||||
GWP change (% year over year) | (1) | % | (3) | % | |||||||
Net written premiums | $ 359 | $ 359 | $ 619 | $ 630 | |||||||
NWP change (% year over year) | — | % | (2) | % | |||||||
Net earned premiums | $ 311 | $ 302 | $ 626 | $ 592 | |||||||
NEP change (% year over year) | 3 | % | 6 | % | |||||||
Underwriting gain | $ 25 | $ 22 | $ 46 | $ 31 | |||||||
Underlying loss ratio | 58.1 | % | 57.9 | % | 58.1 | % | 57.7 | % | |||
Effect of catastrophe impacts | 2.0 | 3.1 | 2.0 | 2.9 | |||||||
Effect of development-related items | (1.0) | — | (0.5) | 2.5 | |||||||
Loss ratio | 59.1 | % | 61.0 | % | 59.6 | % | 63.1 | % | |||
Expense ratio | 32.8 | % | 31.2 | % | 33.0 | % | 31.5 | % | |||
Combined ratio | 91.9 | % | 92.2 | % | 92.6 | % | 94.6 | % | |||
Underlying combined ratio | 90.9 | % | 89.1 | % | 91.1 | % | 89.2 | % | |||
- The underlying combined ratio increased 1.8 points as compared with the prior year quarter. The expense ratio increased 1.6 points primarily driven by higher employee related costs and acquisition costs. The underlying loss ratio increased 0.2 points as compared with the prior year quarter.
- The combined ratio improved 0.3 points as compared with the prior year quarter. Catastrophe losses were
$6 million $9 million - Excluding currency fluctuations, gross written premiums declined
1% for the second quarter of 2024 and net written premiums were consistent with the second quarter of 2023.
Life & Group | |||||||||||
Results for the Three | Results for the Six Months | ||||||||||
($ millions) | 2024 | 2023 | 2024 | 2023 | |||||||
Net earned premiums | $ 109 | $ 113 | $ 219 | $ 228 | |||||||
Claims, benefits and expenses | 355 | 375 | 696 | 716 | |||||||
Net investment income | 239 | 229 | 470 | 443 | |||||||
Core (loss) income | (1) | (20) | 4 | (23) | |||||||
Core loss improved
Corporate & Other | |||||||||||
Results for the Three | Results for the Six Months | ||||||||||
($ millions) | 2024 | 2023 | 2024 | 2023 | |||||||
Insurance claims and policyholders' benefits | $ 27 | $ 29 | $ 19 | $ 22 | |||||||
Interest expense | 35 | 30 | 69 | 58 | |||||||
Net investment income | 18 | 14 | 39 | 24 | |||||||
Core loss | (53) | (46) | (75) | (64) | |||||||
Core loss increased
Net Investment Income | |||||||||||
Results for the Three | Results for the Six Months | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Fixed income securities and other | $ 540 | $ 507 | $ 1,081 | $ 1,004 | |||||||
Limited partnership and common stock investments | 78 | 68 | 146 | 96 | |||||||
Net investment income | $ 618 | $ 575 | $ 1,227 | $ 1,100 | |||||||
Net investment income increased
Stockholders' Equity
Stockholders' equity of
Book value per share ex AOCI of
As of June 30, 2024, statutory capital and surplus for the Combined Continental Casualty Companies was
About the Company
CNA is one of the largest
Contacts | |||
Media: | Analysts: | ||
Kelly | Ralitza K. Todorova | Vice President, | ||
872-817-0350 | 312-822-3834 | ||
Earnings Remarks & Materials
A transcript of earnings remarks will be available on CNA's website at www.cna.com via the Investor Relations section. Remarks will include commentary from the Company's Chairman & Chief Executive Officer, Dino Robusto, and Chief Financial Officer, Scott 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 brokers, independent agencies and managing general underwriters.
- Commercial works with a network of 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 markets 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 theU.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 CNA Re, 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
- 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 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, expense and dividend ratios.
- Underlying combined ratio is the sum of the underlying loss, expense and dividend ratios.
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.
Gross written premiums ex. 3rd party captives represents gross written premiums excluding business which is ceded to third party captives, including business related to large warranty programs.
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 and deductible amounts.
Underwriting gain (loss) represents net earned premiums less total insurance expenses, which includes insurance claims and policyholders' benefits, amortization of deferred acquisition costs and other insurance related expenses, pre-tax.
Underlying underwriting gain (loss) represents underwriting results excluding catastrophe losses and development-related items.
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
This press release also contains financial measures that are not in accordance with GAAP. Management utilizes these financial measures 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. The calculation of core income (loss) excludes net investment gains or losses because net investment gains or losses are generally driven by economic factors that are not necessarily reflective of 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 | Results for the Six Months | ||||||
($ millions) | 2024 | 2023 | 2024 | 2023 | |||
Net income | $ 317 | $ 283 | $ 655 | $ 580 | |||
Less: Net investment losses | (9) | (25) | (26) | (53) | |||
Core income | $ 326 | $ 308 | $ 681 | $ 633 | |||
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 | Results for the Six Months | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income per diluted share | $ 1.17 | $ 1.04 | $ 2.40 | $ 2.13 | |||
Less: Net investment losses | (0.02) | (0.09) | (0.10) | (0.20) | |||
Core income per diluted share | $ 1.19 | $ 1.13 | $ 2.50 | $ 2.33 | |||
Reconciliation of Book Value per Share to Book Value per Share Excluding AOCI
Book value per share excluding accumulated other comprehensive income (loss) (AOCI) allows management and investors to analyze the amount of the Company's net worth primarily attributable to the Company's business operations. The Company believes this measurement is useful as it reduces the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.
June 30, 2024 | December 31, | ||
Book value per share | $ 36.46 | $ 36.52 | |
Less: Per share impact of AOCI | (9.40) | (9.87) | |
Book value per share excluding AOCI | $ 45.86 | $ 46.39 |
Calculation of Return on Equity and Core Return on Equity
Core return on equity provides management and investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to its business operations.
Results for the Three Months | Results for the Six Months | |||||||
($ millions) | 2024 | 2023 | 2024 | 2023 | ||||
Annualized net income | $ 1,270 | $ 1,132 | $ 1,311 | $ 1,160 | ||||
Average stockholders' equity including AOCI (a) | 9,768 | 8,696 | 9,883 | 8,637 | ||||
Return on equity | 13.0 | % | 13.0 | % | 13.3 | % | 13.4 | % |
Annualized core income | $ 1,303 | $ 1,233 | $ 1,361 | $ 1,266 | ||||
Average stockholders' equity excluding AOCI (a) | 12,328 | 12,063 | 12,493 | 12,148 | ||||
Core return on equity | 10.6 | % | 10.2 | 10.9 | % | 10.4 | % | |
(a) | Average stockholders' equity is calculated using a simple average of the beginning and ending balances for the period. |
For additional information, please refer to CNA's most recent 10-K on file with the Securities and Exchange Commission, as well as the financial supplement, available at www.cna.com.
Forward-Looking Statements
This press release includes statements that relate to anticipated future events (forward-looking statements) rather than actual present conditions or historical events. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as "believes," "expects," "intends," "anticipates," "estimates" and similar expressions. Forward-looking statements, by their nature, are subject to a variety of inherent risks and uncertainties that could cause actual results to differ materially from the results projected. Many of these risks and uncertainties cannot be controlled by CNA. For a detailed description of these risks and uncertainties, please refer to CNA's filings with the Securities and Exchange Commission, available at www.cna.com.
Any forward-looking statements made in this press release are made by CNA as of the date of this press release. Further, CNA does not have any obligation to update or revise any forward-looking statement contained in this press release, even if CNA's expectations or any related events, conditions or circumstances change.
Any descriptions of coverage under CNA policies or programs in this press release are provided for convenience only and are not to be relied upon with respect to questions of coverage, exclusions or limitations. With regard to all such matters, the terms and provisions of relevant insurance policies are primary and controlling. In addition, please note that all coverages may not be available in all states.
"CNA" is a registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the "CNA" trademark in connection with insurance underwriting and claims activities. Copyright © 2024 CNA. All rights reserved.
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SOURCE Continental Casualty Company
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