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Why Is CNA Financial (CNA) Up 5.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for CNA Financial (CNA - Free Report) . Shares have added about 5.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CNA Financial due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for CNA Financial Corporation before we dive into how investors and analysts have reacted as of late.
CNA Financial Corporation reported second-quarter 2025 core earnings of $1.23 per share, which beat the Zacks Consensus Estimate by 30.9%. Moreover, the bottom line increased 3.4% year over year. The quarterly results of CNA reflected higher income from fixed income securities, a larger invested asset base, improved underwriting income, partly offset by escalating expenses.
Behind Second-Quarter Headlines
Total operating revenues of CNA Financial were $3.4 billion, up 7.7% year over year due to higher premiums, net investment income and other revenues. The top line beat the Zacks Consensus Estimate by 3.5%. Net written premiums of Property & Casualty Operations improved 6.4% year over year to $2.8 billion. Our estimate was pegged at $2.7 billion.
Net investment income rose 7.1% year over year to $662 million. The increase was driven by higher income from fixed income securities because of a larger invested asset base and favorable reinvestment rates, as well as favorable limited partnership and common stock returns. Our estimate for net investment was $686.6 million. The Zacks Consensus Estimate was pegged at $687 million.
Total claims, benefits, and expenses increased 7.1% year over year to $3.3 billion, primarily due to higher insurance claims and policyholders' benefits and amortization of deferred acquisition costs. Our estimate was $2.5 billion. Catastrophe losses were $62 million, narrower than a loss of $82 million in the year-ago quarter.
Underwriting income climbed 20.9% year over year to $150 million. The combined ratio improved 70 basis points (bps) year over year to 94.8. The Zacks Consensus Estimate was pegged at 93.6, while our estimate was 100.
Segment Results
Specialty’s net written premiums increased 4.1% year over year to $892 million. Our estimate was $867.7 million. The combined ratio deteriorated 90 bps to 93.6. The Zacks Consensus Estimate was pegged at 95. Commercial’s net written premiums increased 7.2% year over year to $1.6 billion, which missed our estimate by whiskers. The combined ratio improved 220 bps to 94.8. The Zacks Consensus Estimate was pegged at 100.
International’s net written premiums remained flat year over year at $391 million. Our estimate was $338.6 million. The combined ratio deteriorated 90 bps to 92.8. The Zacks Consensus Estimate was pegged at 105. Life & Group’s net earned premiums were $106 million, down 2.8% year over year. Our estimate was $104.8 million. The core income was $1 million, narrower than the loss of $1 million incurred in the year-ago quarter. Corporate & Other’s core loss of $114 million was wider than the loss of $53 million incurred in the year-earlier quarter.
Financial Update
The core return on equity expanded 40 bps to 11%. Book value, excluding AOCI, as of June 30 was $45.25 per share, down 2% from the 2024-end level. Statutory capital and surplus for the Combined Continental Casualty Companies increased 0.3% from the 2024-end level to $11.2 billion at the second-quarter end. Net cash flow provided by operating activities decreased year over year 8.8% to $562 million in the quarter.
Dividend Update
CNA Financial’s board of directors approved a quarterly dividend of 46 cents per share to be paid out on Sept. 4, 2025, to stockholders of record on Aug. 18, 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 5.91% due to these changes.
VGM Scores
Currently, CNA Financial has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise CNA Financial has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
CNA Financial belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, W.R. Berkley (WRB - Free Report) , has gained 2.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
W.R. Berkley reported revenues of $3.64 billion in the last reported quarter, representing a year-over-year change of +7.9%. EPS of $1.05 for the same period compares with $1.04 a year ago.
W.R. Berkley is expected to post earnings of $1.03 per share for the current quarter, representing a year-over-year change of +10.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for W.R. Berkley. Also, the stock has a VGM Score of D.
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Why Is CNA Financial (CNA) Up 5.2% Since Last Earnings Report?
It has been about a month since the last earnings report for CNA Financial (CNA - Free Report) . Shares have added about 5.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CNA Financial due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for CNA Financial Corporation before we dive into how investors and analysts have reacted as of late.
CNA Financial Q2 Earnings Beat Estimates, Revenues Increase Y/Y
CNA Financial Corporation reported second-quarter 2025 core earnings of $1.23 per share, which beat the Zacks Consensus Estimate by 30.9%. Moreover, the bottom line increased 3.4% year over year. The quarterly results of CNA reflected higher income from fixed income securities, a larger invested asset base, improved underwriting income, partly offset by escalating expenses.
Behind Second-Quarter Headlines
Total operating revenues of CNA Financial were $3.4 billion, up 7.7% year over year due to higher premiums, net investment income and other revenues. The top line beat the Zacks Consensus Estimate by 3.5%. Net written premiums of Property & Casualty Operations improved 6.4% year over year to $2.8 billion. Our estimate was pegged at $2.7 billion.
Net investment income rose 7.1% year over year to $662 million. The increase was driven by higher income from fixed income securities because of a larger invested asset base and favorable reinvestment rates, as well as favorable limited partnership and common stock returns. Our estimate for net investment was $686.6 million. The Zacks Consensus Estimate was pegged at $687 million.
Total claims, benefits, and expenses increased 7.1% year over year to $3.3 billion, primarily due to higher insurance claims and policyholders' benefits and amortization of deferred acquisition costs. Our estimate was $2.5 billion. Catastrophe losses were $62 million, narrower than a loss of $82 million in the year-ago quarter.
Underwriting income climbed 20.9% year over year to $150 million. The combined ratio improved 70 basis points (bps) year over year to 94.8. The Zacks Consensus Estimate was pegged at 93.6, while our estimate was 100.
Segment Results
Specialty’s net written premiums increased 4.1% year over year to $892 million. Our estimate was $867.7 million. The combined ratio deteriorated 90 bps to 93.6. The Zacks Consensus Estimate was pegged at 95. Commercial’s net written premiums increased 7.2% year over year to $1.6 billion, which missed our estimate by whiskers. The combined ratio improved 220 bps to 94.8. The Zacks Consensus Estimate was pegged at 100.
International’s net written premiums remained flat year over year at $391 million. Our estimate was $338.6 million. The combined ratio deteriorated 90 bps to 92.8. The Zacks Consensus Estimate was pegged at 105. Life & Group’s net earned premiums were $106 million, down 2.8% year over year. Our estimate was $104.8 million. The core income was $1 million, narrower than the loss of $1 million incurred in the year-ago quarter. Corporate & Other’s core loss of $114 million was wider than the loss of $53 million incurred in the year-earlier quarter.
Financial Update
The core return on equity expanded 40 bps to 11%. Book value, excluding AOCI, as of June 30 was $45.25 per share, down 2% from the 2024-end level. Statutory capital and surplus for the Combined Continental Casualty Companies increased 0.3% from the 2024-end level to $11.2 billion at the second-quarter end. Net cash flow provided by operating activities decreased year over year 8.8% to $562 million in the quarter.
Dividend Update
CNA Financial’s board of directors approved a quarterly dividend of 46 cents per share to be paid out on Sept. 4, 2025, to stockholders of record on Aug. 18, 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 5.91% due to these changes.
VGM Scores
Currently, CNA Financial has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise CNA Financial has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
CNA Financial belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, W.R. Berkley (WRB - Free Report) , has gained 2.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
W.R. Berkley reported revenues of $3.64 billion in the last reported quarter, representing a year-over-year change of +7.9%. EPS of $1.05 for the same period compares with $1.04 a year ago.
W.R. Berkley is expected to post earnings of $1.03 per share for the current quarter, representing a year-over-year change of +10.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for W.R. Berkley. Also, the stock has a VGM Score of D.