FOR IMMEDIATE RELEASE
CNA FINANCIAL ANNOUNCES THIRD QUARTER 2025
NET INCOME OF $1.48 PER SHARE AND RECORD CORE INCOME OF $1.50 PER SHARE
•Net income of $403 million versus $283 million in the prior year quarter; core income up 40% to a record $409 million versus $293 million in the prior year quarter. Year to date core income up 5% to a record $1,025 million.
•P&C core income of $456 million versus $346 million, reflects lower catastrophe losses, improved underlying underwriting results and higher net investment income.
•Life & Group core loss of $22 million versus $9 million in the prior year quarter.
•Corporate & Other core loss of $25 million versus $44 million in the prior year quarter.
•Net investment income up 2% to $638 million pretax, reflects a $21 million increase from fixed income securities and other investments to $567 million and a $9 million decrease from limited partnerships and common stock to $71 million.
•P&C combined ratio of 92.8%, compared with 97.2% in the prior year quarter, including 1.5 points of catastrophe loss impact compared with 5.8 points in the prior year quarter.
•Catastrophe losses of $41 million pretax versus $143 million in the prior year quarter.
•P&C underlying combined ratio was 91.3%, compared with 91.6% in the prior year quarter. P&C underlying loss ratio was 61.9% and the expense ratio was 29.1%.
•P&C segments, excluding third party captives, generated gross written premium growth of 2% and net written premium growth of 3%. P&C renewal premium change of +4%, with written rate of +3% and exposure change of +1%.
•Book value per share of $41.83; book value per share excluding AOCI of $46.30, a 8% increase from year-end 2024 adjusting for $3.38 of dividends per share paid.
•Board of Directors declares regular quarterly cash dividend of $0.46 per share.
CHICAGO, November 3, 2025 --- CNA Financial Corporation (NYSE: CNA) today announced third quarter 2025 net income of $403 million, or $1.48 per share, versus $283 million, or $1.04 per share, in the prior year quarter. Net investment losses for the quarter were $6 million compared to $7 million in the prior year quarter. Core income for the quarter was a record $409 million, or $1.50 per share, versus $293 million, or $1.08 per share, in the prior year quarter.
Our Property & Casualty segments produced core income of $456 million for the third quarter of 2025, an increase of $110 million compared to the prior year quarter reflecting lower catastrophe losses, improved underlying underwriting results and higher net investment income. P&C segments, excluding third party captives, generated gross written premium growth of 2% and net written premium growth of 3%, due to renewal premium change of +4%.
Our Life & Group segment produced core loss of $22 million for the third quarter of 2025 compared to a core loss of $9 million in the prior year quarter. Our Corporate & Other segment produced a core loss of $25 million for the third quarter of 2025 versus $44 million in the prior year quarter.
CNA Financial declared a quarterly dividend of $0.46 per share, payable December 4, 2025 to stockholders of record on November 17, 2025.
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| Results for the Three Months Ended September 30 | | Results for the Nine Months Ended September 30 |
| ($ millions, except per share data) | 2025 | | 2024 | | 2025 | | 2024 |
| Net income | $ | 403 | | | $ | 283 | | | $ | 976 | | | $ | 938 | |
Core income (a) | 409 | | | 293 | | | 1,025 | | | 974 | |
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| Net income per diluted share | $ | 1.48 | | | $ | 1.04 | | | $ | 3.58 | | | $ | 3.44 | |
| Core income per diluted share | 1.50 | | | 1.08 | | | 3.76 | | | 3.57 | |
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| September 30, 2025 | | December 31, 2024 |
| Book value per share | $ | 41.83 | | $ | 38.82 |
| Book value per share excluding AOCI | | 46.30 | | | 46.16 |
(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 achieved record core income of $409 million in the quarter, with year to date core income surpassing $1 billion for the first time in history. Underwriting income was exceptionally strong at $194 million, nearly triple the prior year’s quarter, aided by low catastrophe losses. The underlying underwriting gain reached $235 million, a record best, marking the tenth consecutive quarter above $200 million. Net investment income rose again year over year driven by higher fixed income results.
The P&C all-in combined ratio was 92.8% in the quarter, including $41 million or 1.5 points of catastrophe loss. The underlying combined ratio improved to 91.3% and the expense ratio dropped to 29.1%, the lowest since 2008.
Net written premiums grew 3% as we maintained disciplined underwriting, prioritizing profitability over growth in challenging market segments. The company continues to efficiently manage expenses while increasing its investments in talent and technology, including artificial intelligence, and is expanding its Cardinal E&S offering to capitalize on opportunities in the excess and surplus lines market.
Overall, CNA’s third quarter results reflect outstanding underwriting performance, prudent risk management and strategic growth, positioning the company for a strong finish to the year.
As we near the end of the year and Dino Robusto’s term as Executive Chairman, I also want to express deep gratitude to Dino on behalf of the organization for his vast contributions to CNA. Dino’s leadership and vision over the last nine years has created lasting value for all stakeholders," said Douglas M. Worman, President & Chief Executive Officer of CNA Financial Corporation.
CNA also announced today that Douglas M. Worman has been appointed Chairman of the Board in addition to his current responsibilities as President & Chief Executive Officer. This appointment is effective January 1, 2026.
Property & Casualty Operations
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| Results for the Three Months Ended September 30 | | Results for the Nine Months Ended September 30 |
| ($ millions) | 2025 | | 2024 | | 2025 | | 2024 |
Gross written premiums ex. 3rd party captives | $ | 2,890 | | | | $ | 2,825 | | | | $ | 9,385 | | | | $ | 8,964 | | |
GWP ex. 3rd party captives change (% year over year) | 2 | | % | | | | | 5 | | % | | | |
| Net written premiums | $ | 2,437 | | | | $ | 2,360 | | | | $ | 7,889 | | | | $ | 7,424 | | |
| NWP change (% year over year) | 3 | | % | | | | | 6 | | % | | | |
| Net earned premiums | $ | 2,678 | | | | $ | 2,484 | | | | $ | 7,786 | | | | $ | 7,204 | | |
| NEP change (% year over year) | 8 | | % | | | | | 8 | | % | | | |
| Underwriting gain | $ | 194 | | | | $ | 68 | | | | $ | 384 | | | | $ | 318 | | |
| Net investment income | $ | 396 | | | | $ | 372 | | | | $ | 1,172 | | | | $ | 1,090 | | |
| Core income | $ | 456 | | | | $ | 346 | | | | $ | 1,215 | | | | $ | 1,098 | | |
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| Loss ratio | 63.4 | | % | | 66.7 | | % | | 65.0 | | % | | 64.9 | | % |
| Less: Effect of catastrophe impacts | 1.5 | | | | 5.8 | | | | 2.6 | | | | 4.3 | | |
| Less: Effect of (favorable) unfavorable development-related items | — | | | | (0.2) | | | | 0.8 | | | | (0.2) | | |
| Underlying loss ratio | 61.9 | | % | | 61.1 | | % | | 61.6 | | % | | 60.8 | | % |
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| Expense ratio | 29.1 | | % | | 30.2 | | % | | 29.7 | | % | | 30.3 | | % |
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| Combined ratio | 92.8 | | % | | 97.2 | | % | | 95.1 | | % | | 95.6 | | % |
| Underlying combined ratio | 91.3 | | % | | 91.6 | | % | | 91.7 | | % | | 91.5 | | % |
•The underlying combined ratio improved 0.3 points as compared with the prior year quarter. The expense ratio improved by 1.1 points as compared with the prior year quarter primarily attributed to net earned premium growth of 8% and a favorable acquisition ratio. The underlying loss ratio increased 0.8 points as compared with the prior year quarter as a result of increases across each segment.
•The combined ratio improved 4.4 points as compared with the prior year quarter. Catastrophe losses were $41 million, or 1.5 points of the loss ratio in the quarter compared with $143 million, or 5.8 points of the loss ratio, for the prior year quarter. There was no net prior period development in the current quarter compared with 0.2 points of favorable development improving the loss ratio in the prior year quarter.
•P&C segments, excluding third party captives, generated gross written premium growth of 2% and net written premium growth of 3%.
Business Operating Highlights
Specialty
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| Results for the Three Months Ended September 30 | | Results for the Nine Months Ended September 30 |
| ($ millions) | 2025 | | 2024 | | 2025 | | 2024 |
Gross written premiums ex. 3rd party captives | $ | 1,009 | | | | $ | 982 | | | | $ | 2,952 | | | | $ | 2,846 | | |
GWP ex. 3rd party captives change (% year over year) | 3 | | % | | | | | 4 | | % | | | |
| Net written premiums | $ | 867 | | | | $ | 862 | | | | $ | 2,601 | | | | $ | 2,511 | | |
| NWP change (% year over year) | 1 | | % | | | | | 4 | | % | | | |
| Net earned premiums | $ | 881 | | | | $ | 848 | | | | $ | 2,573 | | | | $ | 2,493 | | |
| NEP change (% year over year) | 4 | | % | | | | | 3 | | % | | | |
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| Underwriting gain | $ | 60 | | | | $ | 59 | | | | $ | 155 | | | | $ | 195 | | |
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| Loss ratio | 60.6 | | % | | 60.1 | | % | | 60.7 | | % | | 59.3 | | % |
| Less: Effect of catastrophe impacts | — | | | | — | | | | — | | | | — | | |
| Less: Effect of unfavorable (favorable) development-related items | — | | | | — | | | | 0.4 | | | | (0.3) | | |
| Underlying loss ratio | 60.6 | | % | | 60.1 | | % | | 60.3 | | % | | 59.6 | | % |
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| Expense ratio | 32.5 | | % | | 32.7 | | % | | 33.0 | | % | | 32.5 | | % |
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| Combined ratio | 93.3 | | % | | 93.0 | | % | | 94.0 | | % | | 92.1 | | % |
| Underlying combined ratio | 93.3 | | % | | 93.0 | | % | | 93.6 | | % | | 92.4 | | % |
•The underlying combined ratio increased 0.3 points as compared with the prior year quarter due to a 0.5 point increase in the underlying loss ratio partially offset by a 0.2 point improvement in the expense ratio.
•The combined ratio increased 0.3 points as compared with the prior year quarter.
•Gross written premiums, excluding third party captives, grew 3% and net written premiums grew 1% for the third quarter of 2025.
Commercial
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| Results for the Three Months Ended September 30 | | Results for the Nine Months Ended September 30 |
| ($ millions) | 2025 | | 2024 | | 2025 | | 2024 |
Gross written premiums ex. 3rd party captives | $ | 1,559 | | | | $ | 1,538 | | | | $ | 5,301 | | | | $ | 5,022 | | |
GWP ex. 3rd party captives change (% year over year) | 1 | | % | | | | | 6 | | % | | | |
| Net written premiums | $ | 1,251 | | | | $ | 1,221 | | | | $ | 4,312 | | | | $ | 4,017 | | |
| NWP change (% year over year) | 2 | | % | | | | | 7 | | % | | | |
| Net earned premiums | $ | 1,453 | | | | $ | 1,325 | | | | $ | 4,235 | | | | $ | 3,774 | | |
| NEP change (% year over year) | 10 | | % | | | | | 12 | | % | | | |
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| Underwriting gain (loss) | $ | 106 | | | | $ | (3) | | | | $ | 163 | | | | $ | 65 | | |
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| Loss ratio | 66.1 | | % | | 72.0 | | % | | 68.7 | | % | | 69.7 | | % |
| Less: Effect of catastrophe impacts | 2.7 | | | | 9.6 | | | | 4.3 | | | | 7.5 | | |
| Less: Effect of (favorable) unfavorable development-related items | — | | | | (0.1) | | | | 1.3 | | | | — | | |
| Underlying loss ratio | 63.4 | | % | | 62.5 | | % | | 63.1 | | % | | 62.2 | | % |
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| Expense ratio | 26.1 | | % | | 27.7 | | % | | 26.9 | | % | | 28.1 | | % |
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| Combined ratio | 92.7 | | % | | 100.2 | | % | | 96.1 | | % | | 98.3 | | % |
| Underlying combined ratio | 90.0 | | % | | 90.7 | | % | | 90.5 | | % | | 90.8 | | % |
•The underlying combined ratio improved 0.7 points, to a record low, as compared with the prior year quarter. The expense ratio improved 1.6 points primarily attributed to a favorable acquisition ratio and net earned premium growth of 10%. The underlying loss ratio increased 0.9 points compared with the prior year quarter attributed to social inflation impacted lines.
•The combined ratio improved 7.5 points as compared with the prior year quarter. Catastrophe losses were $39 million, or 2.7 points of the loss ratio in the quarter compared with $127 million, or 9.6 points of the loss ratio, for the prior year quarter.
•Gross written premiums, excluding third party captives, grew 1% and net written premiums grew 2% for the third quarter of 2025.
International
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| Results for the Three Months Ended September 30 | | Results for the Nine Months Ended September 30 |
| ($ millions) | 2025 | | 2024 | | 2025 | | 2024 |
| Gross written premiums | $ | 322 | | | | $ | 305 | | | | $ | 1,132 | | | | $ | 1,096 | | |
| GWP change (% year over year) | 6 | | % | | | | | 3 | | % | | | |
| Net written premiums | $ | 319 | | | | $ | 277 | | | | $ | 976 | | | | $ | 896 | | |
| NWP change (% year over year) | 15 | | % | | | | | 9 | | % | | | |
| Net earned premiums | $ | 344 | | | | $ | 311 | | | | $ | 978 | | | | $ | 937 | | |
| NEP change (% year over year) | 11 | | % | | | | | 4 | | % | | | |
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| Underwriting gain | $ | 28 | | | | $ | 12 | | | | $ | 66 | | | | $ | 58 | | |
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| Loss ratio | 59.1 | | % | | 62.5 | | % | | 60.3 | | % | | 60.6 | | % |
| Less: Effect of catastrophe impacts | 0.6 | | | | 5.1 | | | | 1.8 | | | | 3.0 | | |
| Less: Effect of favorable development-related items | — | | | | (0.7) | | | | — | | | | (0.5) | | |
| Underlying loss ratio | 58.5 | | % | | 58.1 | | % | | 58.5 | | % | | 58.1 | | % |
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| Expense ratio | 32.7 | | % | | 33.6 | | % | | 32.9 | | % | | 33.1 | | % |
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| Combined ratio | 91.8 | | % | | 96.1 | | % | | 93.2 | | % | | 93.7 | | % |
| Underlying combined ratio | 91.2 | | % | | 91.7 | | % | | 91.4 | | % | | 91.2 | | % |
•The underlying combined ratio improved 0.5 points as compared with the prior year quarter. The expense ratio improved 0.9 points primarily attributed to net earned premium growth of 11%. The underlying loss ratio increased 0.4 points as compared with the prior year quarter.
•The combined ratio improved 4.3 points as compared with the prior year quarter. Catastrophe losses were $2 million, or 0.6 points of the loss ratio in the quarter compared with $16 million, or 5.1 points of the loss ratio, for the prior year quarter. There was no net prior period development in the current quarter compared with 0.7 points of favorable development in the prior year quarter.
•Excluding currency fluctuations, gross written premiums grew 3% and net written premiums grew 12% for the third quarter of 2025. Net written premium growth was driven by a true-up on reinsurance costs for prior treaty terms.
Life & Group
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| Results for the Three Months Ended September 30 | | Results for the Nine Months Ended September 30 |
| ($ millions) | 2025 | | 2024 | | 2025 | | 2024 |
| Net earned premiums | $ | 106 | | | | $ | 110 | | | | $ | 318 | | | | $ | 329 | | |
| Claims, benefits and expenses | 365 | | | | 367 | | | | 1,040 | | | | 1,063 | | |
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| Net investment income | 226 | | | | 240 | | | | 687 | | | | 710 | | |
| Core loss | (22) | | | | (9) | | | | (15) | | | | (5) | | |
Core loss increased $13 million for the third quarter of 2025 as compared with the prior year quarter primarily due to lower net investment income from limited partnerships. Both periods include assumption updates as a result of the annual reserve reviews.
The assumption updates in the third quarter of 2025 unfavorably impacted core loss by $7 million after-tax, which is comprised of a $7 million increase in long-term care reserves and a $2 million increase in structured settlement reserves.
The assumption updates in the third quarter of 2024 unfavorably impacted core loss by $5 million after-tax, which included a $15 million increase in long-term care reserves, partially offset by a $9 million reduction in structured settlement reserves.
Corporate & Other
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| Results for the Three Months Ended September 30 | | Results for the Nine Months Ended September 30 |
| ($ millions) | 2025 | | 2024 | | 2025 | | 2024 |
| Insurance claims and policyholders' benefits | $ | (10) | | | | $ | 16 | | | | $ | 107 | | | | $ | 35 | | |
| Interest expense | 36 | | | | 32 | | | | 99 | | | | 101 | | |
| Net investment income | 16 | | | | 14 | | | | 45 | | | | 53 | | |
| Core loss | (25) | | | | (44) | | | | (175) | | | | (119) | | |
Core loss improved $19 million for the third quarter of 2025 as compared with the prior year quarter. There was no net prior year development in the current quarter compared with a $17 million after-tax charge related to unfavorable prior year development in the prior year quarter associated with legacy mass tort.
Net Investment Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Results for the Three Months Ended September 30 | | Results for the Nine Months Ended September 30 |
| 2025 | | 2024 | | 2025 | | 2024 |
| Fixed income securities and other | $ | 567 | | | | $ | 546 | | | | $ | 1,679 | | | | $ | 1,627 | | |
| Limited partnership and common stock investments | 71 | | | | 80 | | | | 225 | | | | 226 | | |
| Net investment income | $ | 638 | | | | $ | 626 | | | | $ | 1,904 | | | | $ | 1,853 | | |
Net investment income increased $12 million for the third quarter of 2025 as compared with the prior year quarter. The increase was driven by higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates.
Stockholders' Equity
Stockholders’ equity of $11.3 billion increased 8% from year-end 2024, primarily due to net income and an improvement in net unrealized investment losses partially offset by dividends paid to stockholders.
Book value per share ex AOCI of $46.30 increased 8% from year-end 2024 adjusting for $3.38 of dividends per share.
As of September 30, 2025, statutory capital and surplus for the Combined Continental Casualty Companies was $11.5 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
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| Media: | | Analysts: |
Kelly Messina | Vice President, Marketing | | Ralitza K. Todorova | Vice President, 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 www.cna.com via the Investor Relations section. Remarks will include commentary from the Company's President 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 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 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 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 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 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, 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 catastrophe losses, 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.
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.
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.
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| Results for the Three Months Ended September 30 | | Results for the Nine Months Ended September 30 |
| ($ millions) | 2025 | | 2024 | | 2025 | | 2024 |
| Net income | $ | 403 | | | $ | 283 | | | $ | 976 | | | $ | 938 | |
| Less: Net investment losses | (6) | | | (7) | | | (49) | | | (33) | |
| Less: Pension settlement transaction losses | — | | | (3) | | — | | | (3) | |
| Core income | $ | 409 | | | $ | 293 | | | $ | 1,025 | | | $ | 974 | |
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.
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| Results for the Three Months Ended September 30 | | Results for the Nine Months Ended September 30 |
| 2025 | | 2024 | | 2025 | | 2024 |
| Net income per diluted share | $ | 1.48 | | | $ | 1.04 | | | $ | 3.58 | | | $ | 3.44 | |
| Less: Net investment losses | (0.02) | | | (0.03) | | | (0.18) | | | (0.12) | |
| Less: Pension settlement transaction losses | — | | | (0.01) | | | — | | | (0.01) | |
| Core income per diluted share | $ | 1.50 | | | $ | 1.08 | | | $ | 3.76 | | | $ | 3.57 | |
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 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 catastrophe losses, which are unpredictable as to timing and amount, and development-related items as they are not indicative of our current year underwriting performance.
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| Results for the Three Months Ended September 30, 2025 |
| Specialty | Commercial | International | Property & Casualty | | | | | | | |
| (In millions) | | | | | | | | | | | |
| Net income | $ | 173 | | $ | 229 | | $ | 44 | | $ | 446 | | | | | | | | |
| Net investment losses, after tax | 3 | | 4 | | 3 | | 10 | | | | | | | | |
| | | | | | | | | | | |
| Core income | $ | 176 | | $ | 233 | | $ | 47 | | $ | 456 | | | | | | | | |
| | | | | | | | | | | |
| Less: | | | | | | | | | | | |
| Net investment income | 162 | | 192 | | 42 | | 396 | | | | | | | | |
| Non-insurance warranty revenue (expense) | 16 | | — | | — | | 16 | | | | | | | | |
| Other revenue (expense), including interest expense | (15) | | (3) | | 1 | | (17) | | | | | | | | |
| Income tax expense on core income | (47) | | (62) | | (24) | | (133) | | | | | | | | |
| Underwriting gain | 60 | | 106 | | 28 | | 194 | | | | | | | | |
| Effect of catastrophe losses | — | | 39 | | 2 | | 41 | | | | | | | | |
| Effect of development-related items | — | | — | | — | | — | | | | | | | | |
| Underlying underwriting gain | $ | 60 | | $ | 145 | | $ | 30 | | $ | 235 | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Results for the Three Months Ended September 30, 2024 |
| Specialty | Commercial | International | Property & Casualty | | | | | | | |
| (In millions) | | | | | | | | | | | |
| Net income | $ | 167 | | $ | 132 | | $ | 34 | | $ | 333 | | | | | | | | |
| Net investment losses, after tax | 4 | | 7 | | 2 | | 13 | | | | | | | | |
| | | | | | | | | | | |
| Core income | $ | 171 | | $ | 139 | | $ | 36 | | $ | 346 | | | | | | | | |
| | | | | | | | | | | |
| Less: | | | | | | | | | | | |
| Net investment income | 157 | | 183 | | 32 | | 372 | | | | | | | | |
| Non-insurance warranty revenue (expense) | 14 | | — | | — | | 14 | | | | | | | | |
| Other revenue (expense), including interest expense | (12) | | (3) | | 8 | | (7) | | | | | | | | |
| Income tax expense on core income | (47) | | (38) | | (16) | | (101) | | | | | | | | |
| Underwriting gain (loss) | 59 | | (3) | | 12 | | 68 | | | | | | | | |
| Effect of catastrophe losses | — | | 127 | | 16 | | 143 | | | | | | | | |
| Effect of favorable development-related items | — | | — | | (2) | | (2) | | | | | | | | |
| Underlying underwriting gain | $ | 59 | | $ | 124 | | $ | 26 | | $ | 209 | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Results for the Nine Months Ended September 30, 2025 |
| Specialty | Commercial | International | Property & Casualty | | | | | | | |
| (In millions) | | | | | | | | | | | |
| Net income | $ | 487 | | $ | 552 | | $ | 135 | | $ | 1,174 | | | | | | | | |
| Net investment losses, after tax | 16 | | 23 | | 2 | | 41 | | | | | | | | |
| | | | | | | | | | | |
| Core income | $ | 503 | | $ | 575 | | $ | 137 | | $ | 1,215 | | | | | | | | |
| | | | | | | | | | | |
| Less: | | | | | | | | | | | |
| Net investment income | 483 | | 575 | | 114 | | 1,172 | | | | | | | | |
| Non-insurance warranty revenue (expense) | 42 | | — | | — | | 42 | | | | | | | | |
| Other revenue (expense), including interest expense | (40) | | (10) | | 12 | | (38) | | | | | | | | |
| Income tax expense on core income | (137) | | (153) | | (55) | | (345) | | | | | | | | |
| Underwriting gain | 155 | | 163 | | 66 | | 384 | | | | | | | | |
| Effect of catastrophe losses | — | | 182 | | 18 | | 200 | | | | | | | | |
| Effect of unfavorable development-related items | 10 | | 54 | | — | | 64 | | | | | | | | |
| Underlying underwriting gain | $ | 165 | | $ | 399 | | $ | 84 | | $ | 648 | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Results for the Nine Months Ended September 30, 2024 |
| Specialty | Commercial | International | Property & Casualty | | | | | | | |
| (In millions) | | | | | | | | | | | |
| Net income | $ | 498 | | $ | 436 | | $ | 116 | | $ | 1,050 | | | | | | | | |
| Net investment losses, after tax | 19 | | 28 | | 1 | | 48 | | | | | | | | |
| | | | | | | | | | | |
| Core income | $ | 517 | | $ | 464 | | $ | 117 | | $ | 1,098 | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Net investment income | 461 | | 534 | | 95 | | 1,090 | | | | | | | | |
| Non-insurance warranty revenue (expense) | 43 | | — | | — | | 43 | | | | | | | | |
| Other revenue (expense), including interest expense | (40) | | (10) | | 5 | | (45) | | | | | | | | |
| Income tax expense on core income | (142) | | (125) | | (41) | | (308) | | | | | | | | |
| Underwriting gain | 195 | | 65 | | 58 | | 318 | | | | | | | | |
| Effect of catastrophe losses | — | | 285 | | 28 | | 313 | | | | | | | | |
| Effect of favorable development-related items | (8) | | — | | (5) | | (13) | | | | | | | | |
| Underlying underwriting gain | $ | 187 | | $ | 350 | | $ | 81 | | $ | 618 | | | | | | | | |
Reconciliation of Book Value per Share to Book Value per Share Excluding AOCI
Book value per share excluding 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.
| | | | | | | | | | | |
| September 30, 2025 | | December 31, 2024 |
| Book value per share | $ | 41.83 | | | $ | 38.82 | |
| Less: Per share impact of AOCI | (4.47) | | | (7.34) | |
| Book value per share excluding AOCI | $ | 46.30 | | | $ | 46.16 | |
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 Ended September 30 | | Results for the Nine Months Ended September 30 | |
| ($ millions) | 2025 | | 2024 | | 2025 | | 2024 | |
| Annualized net income | $ | 1,615 | | | $ | 1,132 | | | $ | 1,302 | | | $ | 1,251 | | |
Average stockholders' equity including AOCI (a) | 10,992 | | | 10,316 | | | 10,917 | | | 10,326 | | |
| Return on equity | 14.7 | | % | 11.0 | | % | 11.9 | | % | 12.1 | | % |
| | | | | | | | |
| Annualized core income | $ | 1,637 | | | $ | 1,176 | | | $ | 1,367 | | | $ | 1,299 | | |
Average stockholders' equity excluding AOCI (a) | 12,390 | | | 12,508 | | | 12,518 | | | 12,580 | | |
| Core return on equity | 13.2 | | % | 9.4 | | % | 10.9 | | % | 10.3 | | % |
(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 © 2025 CNA. All rights reserved.
# # #
CNA Financial Third Quarter 2025 Earnings Remarks
Douglas M. Worman, President and Chief Executive Officer:
We are pleased with our third quarter results, which produced record core income of $409 million, driven by very strong underwriting gain and higher net investment income. On a year to date basis through September, core income exceeded $1 billion for the first time on record. Underwriting income was particularly strong this quarter at $194 million, nearly triple the prior year quarter as we benefited from benign catastrophe losses. We achieved record underlying underwriting gain of $235 million, the tenth consecutive quarter of underlying underwriting gain above $200 million. We grew net written premiums 3% as we continue to capitalize on pockets of excellent opportunities for growth while maintaining strong underwriting discipline across our operations. Operating cash flow remained strong this quarter, and net investment income of $638 million increased $12 million year over year, driven by higher fixed income results.
The P&C all-in combined ratio was 92.8% in the third quarter, including $41 million or 1.5 points of catastrophe losses. The catastrophe loss ratio was substantially lower than our third quarter average over the past five years. Prior period development was negligible in the quarter. The P&C underlying combined ratio was 91.3%. The underlying loss ratio was 61.9%, 0.8 points higher than the third quarter of 2024 and 0.4 points higher than the first half of 2025, as we continue to maintain our prudent philosophy on our underlying loss ratio based on the market conditions around pricing and loss cost trends. We continue to manage our expense ratio effectively, which was 29.1% in the quarter.
Net written premiums grew 3% in the quarter, and gross written premiums excluding captives grew 2%. Similar to last quarter, growth was impacted by lower retentions in certain segments within the Commercial and Specialty portfolios as we execute tailored renewal strategies to optimize our portfolio. In certain small pockets within individual lines and geographies, we believe the external loss cost environment is not being appropriately reflected. When our underwriters can’t obtain pricing, terms and conditions appropriate to the risk, we will not trade bottom line profit for growth and will walk away. P&C rate increase was 3% in the quarter, consistent with last quarter, and renewal premium change was 4%. In both our Commercial and Specialty segments in the U.S., the rate and renewal price change was the same as the prior quarter, while rates declined two points in International. P&C new business was up slightly at $549 million, and we continue to capitalize on opportunities within each of our segments.
Turning to our three operating segments, in Commercial, the all-in combined ratio was 92.7%, a 7.5 point improvement from the prior year quarter. Catastrophe losses were $39 million, representing 2.7 points on the combined ratio, a 6.9 point improvement from the prior year quarter. Prior period development was negligible. The underlying combined ratio was 90.0%, a record low, and represents the seventh straight quarter at 91% or below. The expense ratio was 26.1%, an improvement of 1.6 points year over year and the first quarter on record below 27%. Partially offsetting the improvement in the expense ratio was the underlying loss ratio of 63.4%, up 0.9 points year over year and up 0.5 points compared to the first half of 2025. We have continued our prudent reserving philosophy, particularly in the lines most impacted by social inflation. Because of the higher loss cost trends we have seen over the last several years, we are not lowering the underlying loss ratios for those social inflation impacted lines despite rates being at or above long-run loss cost trend over time, and we continue to react to areas where the rate and trend dynamic is less favorable. The dynamics underpinning social inflation have not abated, and we believe our prudence continues to be warranted as we establish our underlying loss ratios.
Commercial segment net written premium growth was 2% in the quarter, and gross written premiums excluding captives grew by 1%. New business was $324 million in the quarter. Lower new business was driven by the continuation of prudent underwriting in pockets of our commercial auto portfolio, where terms and conditions on many account opportunities did not provide the rate of return we believe appropriate. Rate increase for the Commercial segment was 5% in the quarter, and renewal premium change was 6%, consistent with the prior quarter. We have continued to see rate reductions in national accounts property, where rate was down a point compared to the second quarter. However, national accounts property
continues to achieve an appropriate return overall, and we continue to capitalize on many favorable opportunities despite the recent decline. Property rates, excluding national accounts, are still strong at high single-digit. Excess casualty rate remained low double-digit in the quarter, and commercial auto rate was consistently high at 17%. Primary general liability rates are still in the mid single-digit range, and workers’ compensation rate was improved in the quarter, but still negative, while renewal premium change was positive due to a 4% exposure increase, a substantive portion of which can act like rate. Retention in the Commercial segment was 79% in the third quarter. The lower retention is largely due to efforts that began earlier this year to reposition the commercial auto portfolio in construction and middle market given the reality of the marketplace trajectory and the granular underlying loss drivers in specific areas. As a result of those efforts, the commercial auto retention was again several points lower than the overall average, whereas in workers’ compensation, which has been very profitable for us, retention was several points higher than the average.
Within Specialty, the all-in and underlying combined ratios were 93.3%. The expense ratio was 32.5%, and the underlying loss ratio was 60.6%. The underlying loss ratio is 0.5 points higher than the third quarter of 2024 and the first half of 2025 and is impacted by the continuation of flat to negative rate in the financial institutions and management liability portfolio. We continue to leverage our deep specialization in the Specialty portfolio to execute nuanced underwriting strategies to optimize our book in the current competitive environment. However, in line with our prudent reserving philosophy, we believe reacting to the current market dynamics in areas like financial institutions and management liability remains appropriate, and we will continue to make adjustments based on what we see over time.
Specialty segment net written premiums grew by 1%, and gross written premiums excluding captives growth was 3%. Rate increased by 3%, consistent with the past two quarters. New business was $131 million in the quarter. Retention was strong at 86%, consistent with the second quarter.
The small underlying loss ratio adjustments in Commercial and Specialty this quarter compared to the first half of 2025 reflect our best estimate of the impacts for the latter half of accident year 2025. In each case, this is a reflection of our prudent philosophy across our portfolio where long-run loss cost trends, while unchanged from prior quarters, are still at elevated levels, pricing levels are declining for certain classes and these slightly higher loss ratios provide for some level of uncertainty as the accident year matures.
In International, the all-in combined ratio was 91.8% in the quarter, including $2 million or 0.6 points of catastrophe loss compared to 5.1 points in the prior year quarter. The underlying combined ratio was 91.2%. The underlying loss ratio was 58.5%, up 0.4 points compared to the same quarter last year, but consistent with the first half of 2025. The expense ratio was 32.7%, 0.9 points lower than last year.
International segment net written premiums were up 15% and 12% excluding currency fluctuations. Gross written premiums were up 6% and 3% excluding currency fluctuations. The net written premium was favorably impacted by a true-up on reinsurance costs for prior treaty terms. New business was $94 million, up 29%, as we continue to capitalize on several niche opportunities. Rates declined by 6% as competition continues to escalate. Our retention was 83% as we hold on to the parts of our portfolio that have been consistently profitable, leading to twenty-one consecutive quarters of underwriting profitability in the segment. We believe International will continue to contribute meaningfully to both the top and bottom line going forward, as we navigate through the softer market conditions to capitalize on favorable opportunities.
Scott R. Lindquist, Chief Financial Officer:
CNA’s third quarter core income of $409 million is up from $293 million in the prior year, leading to a trailing twelve-month core return on equity of 10.9%. These results reflect another quarter of strong underlying underwriting results, lower catastrophe losses and excellent investment results.
Our P&C expense ratio was 29.1% for the third quarter and 29.7% for year to date 2025. These results reflect higher net earned premiums and a lower acquisition expense ratio. Recognizing the expense ratio can vary
quarter to quarter, we currently expect a fourth quarter 2025 expense ratio somewhere in the range of where it has been for the two most recent quarters.
The P&C net prior period development impact on the combined ratio was flat in the current quarter across each of our segments. In the Specialty segment, prior period development was neutral overall, and this was attributable to favorable development in surety offset by unfavorable development in other professional liability and management liability from the professional errors and omissions business.
Our Corporate segment produced a core loss of $25 million in the third quarter, compared to a $44 million loss in the prior year quarter. The prior year quarter included a $17 million after-tax charge related to unfavorable prior period development largely associated with legacy mass tort abuse reserves. We also note that, as has been the case in recent years, we intend to review our asbestos & environmental reserves within the Corporate segment in the fourth quarter.
In the Life & Group segment, we recorded a core loss of $22 million for the third quarter compared to a $9 million core loss for the prior year quarter. Life & Group investment income decreased by $14 million pretax compared to the prior year quarter, driven by lower earnings from limited partnership investments. In addition, both periods were impacted by our annual reserve assumption updates – a $7 million unfavorable after-tax impact in 2025 and a $5 million unfavorable impact in 2024.
Each year in the third quarter, we undertake our reserve reviews for Life & Group, which includes the analysis of reserving assumptions underlying our Long-Term Care (LTC) and structured settlement reserves. Taken together, the third quarter reserve reviews resulted in an essentially neutral impact on reserves for Life & Group. The results of our annual reviews are highlighted on slide 13 of our earnings presentation.
The assumption update for LTC involves a thorough review of all our reserving assumptions including cost of care inflation, morbidity, persistency and premium rate actions. Notably for this year’s assumption update, we revised morbidity assumptions reflecting unfavorable incidence and claim closures, and we strengthened our near-term cost of care inflation assumptions. In addition, we outperformed rate increase assumptions reflecting rate approvals across a number of states. The net impact of all LTC assumption updates was slightly favorable.
Under Long Duration Targeting Improvements (LDTI) accounting, the net premium ratio can defer favorable or unfavorable results into future periods – depending on which policy year cohort is impacted. For this assumption update, $12 million of favorable assumption updates have been deferred for recognition in future periods over the remaining life of the respective impacted policy year cohorts. After the deferral of favorable assumption updates, the result was a $7 million unfavorable adjustment to LTC reserves.
Updates to best-estimate assumptions also impact our LTC margin under statutory accounting practices. These assumption revisions increased our statutory margin to $1.5 billion, up from $1.4 billion a year ago.
Finally, the annual structured settlement reserve review resulted in a $2 million unfavorable adjustment to GAAP reserves.
Slide 14 of our earnings presentation provides an update on our LTC business. We believe our proactive approach to managing this portfolio, combined with the higher interest rate environment over the last four years, has considerably improved the outlook for this business.
Our Individual block has been closed since 2004, and our Group block has been closed since 2016. We have achieved substantial reduction in policy exposure in each block since these respective dates, while at the same time obtaining substantive rate increases and benefit reductions via our active inforce management, inclusive of our ongoing policy buyout program. On the investment side, the favorable interest rate environment since early 2022 has improved the underlying economics of this business, as we have been able to lock in high quality, longer duration securities at attractive coupons to support the underlying liabilities of the business - essentially achieving appropriately matching asset and liability durations. This is reflected in the statutory margin which has grown to $1.5 billion, up from $1.1 billion in 2022.
Slide 15 of the earnings presentation provides details on the Individual block characteristics. This block is more mature, with an average attained age of 83 years, and generally features richer benefits, including inflation riders on most policies and lifetime benefits on some policies. The de-risking of this block continues through inforce initiatives, with policy counts down by 50% since 2015 and stable open claim counts. Going forward, we currently expect policy counts to decline by 65% from the current level over the next ten years. We believe the Individual LTC reserves have hit an inflection point and have begun to decline using locked-in discount rate assumptions.
Slide 16 of the earnings presentation provides details on the Group block characteristics. The attained age is 70 years, and, compared to the Individual block, the Group block features less rich policy benefits. Only 1% of Group policies feature lifetime benefit periods, and the block has a relatively modest exposure to inflation. As is the case with the Individual block, the de-risking of the group block continues through inforce initiatives, with policy counts down by 48% since 2015 and stable open claim counts. Going forward, we currently expect policy counts to decline by 25% from the current level over the next ten years. We currently believe Group LTC reserves will peak in the mid-2030s and at a substantially lower level relative to the Individual block primarily due to lower benefit features.
In summary, we believe the financial risk from the LTC block is contained as we believe we are past peak reserves in the larger Individual LTC block, our policy count is half what it was ten years ago, we have demonstrated continued progress executing on inforce and investment portfolio actions and we believe we maintain prudent reserving assumptions.
Turning to our investments results, net investment income was $638 million in the third quarter compared with $626 million in the prior year quarter, an increase of 2%.
Fixed income and other investments generated $567 million of income, up 4% compared to the prior year quarter. Our A-rated fixed income portfolio continues to provide consistent contributions to core income, which have been steadily increasing because of favorable reinvestment rates and strong cash flow from operations. The effective income yield of our consolidated fixed income portfolio was 4.8% in the third quarter. Reinvestment rates continue to be above our P&C portfolio effective income yield of 4.4% and are fairly in line with our Life & Group portfolio effective income yield of 5.7%.
Looking ahead, based on the current interest rate environment we expect income from fixed income and other investments to be about $570 million for the fourth quarter.
Our limited partnership and common stock portfolio returned a $71 million gain, or 2.5%, in the current quarter compared to a $80 million gain, or 3.1%, in the prior year quarter.
At quarter-end, our balance sheet continues to be very solid with stockholders' equity excluding accumulated other comprehensive income (AOCI) of $12.5 billion, or $46.30 per share, an increase of 8% from year-end 2024 adjusting for dividends. Stockholders' equity including AOCI was $11.3 billion or $41.83 per share. With the decline in interest rates during the year, the net unrealized investment loss in our fixed income portfolio decreased to $1.2 billion as of quarter-end, roughly half the level at year-end 2024. Finally, we ended the quarter with statutory capital and surplus in the Combined Continental Casualty Companies of $11.5 billion, which is the highest on record.
We continue to maintain a conservative capital structure with a low leverage ratio and a well-balanced debt maturity schedule. During the third quarter, we issued $500 million of senior notes in advance of our next debt maturity in the first quarter of 2026.
Operating cash flow was $720 million for the quarter as compared to $748 million for the prior year quarter, while year to date operating cash flow is up 3% to $1,920 million. These results reflect continued strength in our underwriting and investment results.
The effective tax rate on core income was 21.3% for the third quarter, and 21.4% for the year to date period, which is in line with our full year 2025 expectations.
Finally, we are pleased to announce our regular quarterly dividend of $0.46 per share to be paid on December 4, 2025 to stockholders of record on November 17, 2025.
Douglas M. Worman, President and Chief Executive Officer:
CNA has produced record levels of core income for the quarter and year to date on the foundation of excellent underwriting gains and continued growth in net investment income. Both our underlying and all-in combined ratios are improved in the quarter compared to last year, and our expense ratio is below 30% for the quarter and year to date. We are managing our expense ratio effectively while continuing to increase our investment in talent and technology, including the use of artificial intelligence in certain parts of our business. Our underwriters work closely with our clients and brokers to tailor insurance solutions to meet the needs of our clients. We are balancing all of the market dynamics well, growing in areas where we can achieve an appropriate return, while pulling back and retrenching in other areas. We continue to capitalize on multiple opportunities in the excess and surplus (E&S) lines market through our Cardinal E&S offering. As E&S continues to be a larger proportion of the overall P&C market and as CNA continues to scale and grow our E&S operations, we expect it will represent a growing portion of our business as we capitalize on many attractive opportunities. Our underwriters are in the market working closely with our brokers and clients, and we look forward to closing out the year in strong fashion.
As we near the end of the year and Dino Robusto’s term as Executive Chairman, I also want to express deep gratitude to Dino on behalf of the organization for his vast contributions to CNA. Dino’s leadership and vision over the last nine years has created lasting value for all stakeholders.
Reconciliation of GAAP Measures to Non-GAAP Measures
These earnings remarks contain financial measures that are not in accordance with accounting principles generally accepted in the United States of America (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 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 September 30 | | Results for the Nine Months Ended September 30 |
| ($ millions) | 2025 | | 2024 | | 2025 | | 2024 |
| Net income | $ | 403 | | | $ | 283 | | | $ | 976 | | | $ | 938 | |
| Less: Net investment losses | (6) | | | (7) | | | (49) | | | (33) | |
| Less: Pension settlement transaction losses | — | | | (3) | | | — | | | (3) | |
| Core income | $ | 409 | | | $ | 293 | | | $ | 1,025 | | | $ | 974 | |
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 September 30 | | Results for the Nine Months Ended September 30 |
| 2025 | | 2024 | | 2025 | | 2024 |
| Net income per diluted share | $ | 1.48 | | | $ | 1.04 | | | $ | 3.58 | | | $ | 3.44 | |
| Less: Net investment losses | (0.02) | | | (0.03) | | | (0.18) | | | (0.12) | |
| Less: Pension settlement transaction losses | — | | | (0.01) | | | — | | | (0.01) | |
| Core income per diluted share | $ | 1.50 | | | $ | 1.08 | | | $ | 3.76 | | | $ | 3.57 | |
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 that underwriting gain (loss) provides investors with a valuable measure of 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 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 catastrophe losses, which are unpredictable as to timing and amount, and development-related items as they are not indicative of our current year underwriting performance.
| | | | | | | | | | | | | | | |
| Results for the Three Months Ended September 30, 2025 |
| Specialty | Commercial | International | Property & Casualty | |
| (In millions) | | | | | |
| Net income | $ | 173 | | $ | 229 | | $ | 44 | | $ | 446 | | |
| Net investment losses, after tax | 3 | | 4 | | 3 | | 10 | | |
| | | | | |
| Core income | $ | 176 | | $ | 233 | | $ | 47 | | $ | 456 | | |
| Less: | | | | | |
| Net investment income | 162 | | 192 | | 42 | | 396 | | |
| Non-insurance warranty revenue (expense) | 16 | | — | | — | | 16 | | |
| Other revenue (expense), including interest expense | (15) | | (3) | | 1 | | (17) | | |
| Income tax expense on core income | (47) | | (62) | | (24) | | (133) | | |
| Underwriting gain | 60 | | 106 | | 28 | | 194 | | |
| Effect of catastrophe losses | — | | 39 | | 2 | | 41 | | |
| Effect of development-related items | — | | — | | — | | — | | |
| Underlying underwriting gain | $ | 60 | | $ | 145 | | $ | 30 | | $ | 235 | | |
| | | | | | | | | | | | | | | |
| Results for the Three Months Ended September 30, 2024 |
| Specialty | Commercial | International | Property & Casualty | |
| (In millions) | | | | | |
| Net income | $ | 167 | | $ | 132 | | $ | 34 | | $ | 333 | | |
| Net investment losses, after tax | 4 | | 7 | | 2 | | 13 | | |
| | | | | |
| Core income | $ | 171 | | $ | 139 | | $ | 36 | | $ | 346 | | |
| Less: | | | | | |
| Net investment income | 157 | | 183 | | 32 | | 372 | | |
| Non-insurance warranty revenue (expense) | 14 | | — | | — | | 14 | | |
| Other revenue (expense), including interest expense | (12) | | (3) | | 8 | | (7) | | |
| Income tax expense on core income | (47) | | (38) | | (16) | | (101) | | |
| Underwriting gain (loss) | 59 | | (3) | | 12 | | 68 | | |
| Effect of catastrophe losses | — | | 127 | | 16 | | 143 | | |
| Effect of favorable development-related items | — | | — | | (2) | | (2) | | |
| Underlying underwriting gain | $ | 59 | | $ | 124 | | $ | 26 | | $ | 209 | | |
| | | | | | | | | | | | | | | |
| Results for the Nine Months Ended September 30, 2025 |
| Specialty | Commercial | International | Property & Casualty | |
| (In millions) | | | | | |
| Net income | $ | 487 | | $ | 552 | | $ | 135 | | $ | 1,174 | | |
| Net investment losses, after tax | 16 | | 23 | | 2 | | 41 | | |
| | | | | |
| Core income | $ | 503 | | $ | 575 | | $ | 137 | | $ | 1,215 | | |
| Less: | | | | | |
| Net investment income | 483 | | 575 | | 114 | | 1,172 | | |
| Non-insurance warranty revenue (expense) | 42 | | — | | — | | 42 | | |
| Other revenue (expense), including interest expense | (40) | | (10) | | 12 | | (38) | | |
| Income tax expense on core income | (137) | | (153) | | (55) | | (345) | | |
| Underwriting gain | 155 | | 163 | | 66 | | 384 | | |
| Effect of catastrophe losses | — | | 182 | | 18 | | 200 | | |
| Effect of unfavorable development-related items | 10 | | 54 | | — | | 64 | | |
| Underlying underwriting gain | $ | 165 | | $ | 399 | | $ | 84 | | $ | 648 | | |
| | | | | | | | | | | | | | | |
| Results for the Nine Months Ended September 30, 2024 |
| Specialty | Commercial | International | Property & Casualty | |
| (In millions) | | | | | |
| Net income | $ | 498 | | $ | 436 | | $ | 116 | | $ | 1,050 | | |
| Net investment losses, after tax | 19 | | 28 | | 1 | | 48 | | |
| | | | | |
| Core income | $ | 517 | | $ | 464 | | $ | 117 | | $ | 1,098 | | |
| Less: | | | | | |
| Net investment income | 461 | | 534 | | 95 | | 1,090 | | |
| Non-insurance warranty revenue (expense) | 43 | | — | | — | | 43 | | |
| Other revenue (expense), including interest expense | (40) | | (10) | | 5 | | (45) | | |
| Income tax expense on core income | (142) | | (125) | | (41) | | (308) | | |
| Underwriting gain | 195 | | 65 | | 58 | | 318 | | |
| Effect of catastrophe losses | — | | 285 | | 28 | | 313 | | |
| Effect of favorable development-related items | (8) | | — | | (5) | | (13) | | |
| Underlying underwriting gain | $ | 187 | | $ | 350 | | $ | 81 | | $ | 618 | | |
Components to reconcile the combined ratio and loss ratio to the underlying combined ratio and underlying loss ratio
The underlying loss ratio excludes the impact of catastrophe losses and development-related items from the loss ratio. The 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 catastrophe losses which are unpredictable as to timing and amount, and development-related items as they are not indicative of our current year underwriting performance.
Specialty
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Results for the Three Months Ended September 30 | | Results for the Nine Months Ended September 30 |
| 2025 | | 2024 | | 2025 | | 2024 |
| Loss ratio | 60.6 | | % | | 60.1 | | % | | 60.7 | | % | | 59.3 | | % |
| Less: Effect of catastrophe impacts | — | | | | — | | | | — | | | | — | | |
| Less: Effect of unfavorable (favorable) development-related items | — | | | | — | | | | 0.4 | | | | (0.3) | | |
| Underlying loss ratio | 60.6 | | % | | 60.1 | | % | | 60.3 | | % | | 59.6 | | % |
| | | | | | | | | | | |
| Expense ratio | 32.5 | | % | | 32.7 | | % | | 33.0 | | % | | 32.5 | | % |
| | | | | | | | | | | |
| Combined ratio | 93.3 | | % | | 93.0 | | % | | 94.0 | | % | | 92.1 | | % |
| Underlying combined ratio | 93.3 | | % | | 93.0 | | % | | 93.6 | | % | | 92.4 | | % |
Commercial | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Results for the Three Months Ended September 30 | | Results for the Nine Months Ended September 30 |
| 2025 | | 2024 | | 2025 | | 2024 |
| Loss ratio | 66.1 | | % | | 72.0 | | % | | 68.7 | | % | | 69.7 | | % |
| Less: Effect of catastrophe impacts | 2.7 | | | | 9.6 | | | | 4.3 | | | | 7.5 | | |
| Less: Effect of (favorable) unfavorable development-related items | — | | | | (0.1) | | | | 1.3 | | | | — | | |
| Underlying loss ratio | 63.4 | | % | | 62.5 | | % | | 63.1 | | % | | 62.2 | | % |
| | | | | | | | | | | |
| Expense ratio | 26.1 | | % | | 27.7 | | % | | 26.9 | | % | | 28.1 | | % |
| | | | | | | | | | | |
| Combined ratio | 92.7 | | % | | 100.2 | | % | | 96.1 | | % | | 98.3 | | % |
| Underlying combined ratio | 90.0 | | % | | 90.7 | | % | | 90.5 | | % | | 90.8 | | % |
International | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Results for the Three Months Ended September 30 | | Results for the Nine Months Ended September 30 |
| 2025 | | 2024 | | 2025 | | 2024 |
| Loss ratio | 59.1 | | % | | 62.5 | | % | | 60.3 | | % | | 60.6 | | % |
| Less: Effect of catastrophe impacts | 0.6 | | | | 5.1 | | | | 1.8 | | | | 3.0 | | |
| Less: Effect of favorable development-related items | — | | | | (0.7) | | | | — | | | | (0.5) | | |
| Underlying loss ratio | 58.5 | | % | | 58.1 | | % | | 58.5 | | % | | 58.1 | | % |
| | | | | | | | | | | |
| Expense ratio | 32.7 | | % | | 33.6 | | % | | 32.9 | | % | | 33.1 | | % |
| | | | | | | | | | | |
| Combined ratio | 91.8 | | % | | 96.1 | | % | | 93.2 | | % | | 93.7 | | % |
| Underlying combined ratio | 91.2 | | % | | 91.7 | | % | | 91.4 | | % | | 91.2 | | % |
Property & Casualty
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Results for the Three Months Ended September 30 | | Results for the Nine Months Ended September 30 |
| 2025 | | 2024 | | 2025 | | 2024 |
| Loss ratio | 63.4 | | % | | 66.7 | | % | | 65.0 | | % | | 64.9 | | % |
| Less: Effect of catastrophe impacts | 1.5 | | | | 5.8 | | | | 2.6 | | | | 4.3 | | |
| Less: Effect of (favorable) unfavorable development-related items | — | | | | (0.2) | | | | 0.8 | | | | (0.2) | | |
| Underlying loss ratio | 61.9 | | % | | 61.1 | | % | | 61.6 | | % | | 60.8 | | % |
| | | | | | | | | | | |
| Expense ratio | 29.1 | | % | | 30.2 | | % | | 29.7 | | % | | 30.3 | | % |
| | | | | | | | | | | |
| Combined ratio | 92.8 | | % | | 97.2 | | % | | 95.1 | | % | | 95.6 | | % |
| Underlying combined ratio | 91.3 | | % | | 91.6 | | % | | 91.7 | | % | | 91.5 | | % |
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.
| | | | | | | | | | | |
| September 30, 2025 | | December 31, 2024 |
| Book value per share | $ | 41.83 | | | $ | 38.82 | |
| Less: Per share impact of AOCI | (4.47) | | (7.34) |
| Book value per share excluding AOCI | $ | 46.30 | | | $ | 46.16 | |
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 Ended September 30 | | Results for the Nine Months Ended September 30 | |
| ($ millions) | 2025 | | 2024 | | 2025 | | 2024 | |
| Annualized net income | $ | 1,615 | | | $ | 1,132 | | | $ | 1,302 | | | $ | 1,251 | | |
Average stockholders' equity including AOCI (a) | 10,992 | | 10,316 | | 10,917 | | 10,326 | |
| Return on equity | 14.7 | | % | 11.0 | | % | 11.9 | | % | 12.1 | | % |
| | | | | | | | |
| Annualized core income | $ | 1,637 | | | $ | 1,176 | | | $ | 1,367 | | | $ | 1,299 | | |
Average stockholders' equity excluding AOCI (a) | 12,390 | | 12,508 | | 12,518 | | 12,580 | |
| Core return on equity | 13.2 | | % | 9.4 | | % | 10.9 | | % | 10.3 | | % |
(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 filings with the Securities and Exchange Commission available at www.cna.com.
Forward-Looking Statements
These earnings remarks include 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 these earnings remarks are made by CNA as of the date of these remarks. Further, CNA does not have any obligation to update or revise any forward-looking statement contained in these remarks, even if CNA’s expectations or any related events, conditions or circumstances change.
