CNA Financial Corporation ( CNA Quick Quote CNA - Free Report) reported second-quarter 2020 core earnings of 36 cents per share, which matched the Zacks Consensus Estimate. The bottom line decreased 66.7% year over year. The quarterly results suffered substantially from catastrophe losses attributable to COVID-19, civil unrest and weather-related events. Nonetheless, the company benefited from accelerating P&C rate momentum and stable new business. Behind Second-Quarter Headlines
Net written premiums at Property & Casualty Operations improved about 3% year over year to $1.9 billion driven by rate increase and higher new business.
Net investment income increased 6.9% year over year to $324 million driven by limited partnership and common stock investments. Catastrophe losses of $301 million pretax, including $182 million related to COVID-19, $61 million related to civil unrest and $58 million primarily related to severe weather-related events. Combined ratio deteriorated 1660 basis points year over year to 112.3%. Book value as of Jun 30, 2020 was $42.91 per share, down 4.6% from Dec 31, 2019. Core return on equity was 3.4%, down 650 basis points (bps). Segment Results Specialty’s net written premiums rose nearly 4% year over year to $742 million, driven by solid rate. Combined ratio deteriorated 1350 bps to 104.2%. Commercial’s net written premiums increased 4% year over year to $949 million, driven by higher new business and favorable rate. Combined ratio deteriorated 1880 bps to 118.5%. International’s net written premiums declined 4% year over year to $239 million, attributable to continued impact of the strategic exit from certain Lloyd's business classes, offset by growth in Europe. Combined ratio deteriorated 1780 bps to 115.3%. Life & Group’s total operating revenues were $332 million, down 0.9% year over year. Core income of $14 million doubled year over year driven by better-than-expected persistency. Corporate & Other’s core loss of $11 million was flat year over year. Dividend Update
CNA Financial’s board of directors approved a quarterly dividend of 35 cents to be paid out on Sep 3, 2020 to stockholders of record as of Aug 17.
CNA Financial currently carries a Zacks Rank #4 (Sell).
You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Performance of Other P&C Insurers
Of the insurance industry players that have reported second-quarter results so far, The Progressive Corporation (
PGR Quick Quote PGR - Free Report) , Cincinnati Financial ( CINF Quick Quote CINF - Free Report) and RLI Corp. ( RLI Quick Quote RLI - Free Report) beat the respective Zacks Consensus Estimate for earnings. Biggest Tech Breakthrough in a Generation
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