We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CNA Stock Lost 1% YTD, Trading at a Discount to Industry: Buy The Dip?
Read MoreHide Full Article
Key Takeaways
CNA increases its gross premiums through retention, competitive pricing, and new business.
Stronger underwriting drives better combined ratio and healthier margins.
CNA has raised its dividend five times in five years with a 40% payout ratio.
Shares of CNA Financial (CNA - Free Report) have lost 1.4% year to date, underperforming its industry, the sector, and the Zacks S&P 500 Composite’s growth of 8.8%, 13.8% and 12.8%, respectively, in the same time frame.
The insurer has a market capitalization of $12.9 billion. The average volume of shares traded in the last three months was 0.5 million.
Image Source: Zacks Investment Research
CNA Shares are Affordable
CNA Financial shares are trading at a discount compared to the Zacks Property and Casualty Insurance industry. Its forward price-to-book value of 1.22X is lower than the industry average of 1.54X. It has a Value Score of A.
Image Source: Zacks Investment Research
However, shares of other property and casualty (P&C) insurers like The Allstate Corporation (ALL - Free Report) , Arch Capital Group Ltd. (ACGL - Free Report) and The Progressive Corporation (PGR - Free Report) are trading at a multiple higher than the industry average.
Projections for CNA
The Zacks Consensus Estimate for 2025 revenues is pegged at $13.5 billion, implying a year-over-year improvement of 6.3%. The consensus estimate for CNA Financial’s current-year earnings is pegged at $4.49 per share, down 7% from the year-ago reported figure. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 6.2% and 2.8%, respectively, from the 2025 estimates.
Optimistic Analyst Sentiment on CNA
The Zacks Consensus Estimate for 2025 and 2026 earnings has moved up 2.3% and 0.2% in the past 30 days, respectively.
Image Source: Zacks Investment Research
Average Target Price for CNA Suggests Upside
Based on short-term price targets offered by two analysts, the Zacks average price target is $49 per share. The average indicates a potential 3.5% upside from the last closing price.
Image Source: Zacks Investment Research
Key Points to Note for CNA
CNA Financial continues to show resilience in the P&C space, with disciplined underwriting keeping combined ratios at healthy levels and ensuring steady profitability. Growth is supported by a diverse product portfolio, strong retention, improved pricing, and new business momentum, while investment income benefits from stable fixed-income yields and stronger limited partnership returns.
Across its operating segments, CNA has experienced steady growth in gross premiums, driven by a competitive product mix, strong policy retention and disciplined pricing. Contributions from new businesses have added to this momentum. The company has also achieved notable improvement in its property and casualty combined ratio in recent years, reflecting stronger underwriting discipline and healthier margins.
CNA’s investment engine is driven by a disciplined fixed-income approach, with significant exposure to investment-grade corporates and well-rated municipal securities. This balanced mix provides resilience while the higher rate environment lifts yields, reinforcing earnings quality. Looking ahead, management anticipates generating about $565 million from fixed-income and other investment sources in the third quarter, with 2025 expected to come in near $2.25 billion, a modest 3% improvement over 2024.
Although CNA Financial has maintained steady growth in gross premiums across all segments and continues to deliver solid investment results, the company faces certain challenges. Rising expenses from higher claims, benefits, and amortization of deferred acquisition costs, along with a relatively high debt load, remain key areas to monitor.
Wealth Distribution of CNA
CNA continues to emphasize shareholder value creation through steady capital returns. The company has increased its dividend five times over the past five years, resulting in a five-year annualized growth rate of 4.8%, with a current payout ratio of 40%. It also pays special dividend occasionally. Its dividend yield betters the industry, making it an attractive pick for yield-seeking investors.
Conclusion
With disciplined underwriting, strong policy retention, and steady premium growth, CNA Financial continues to capitalize on its core P&C operations. Coupled with a focused investment approach and efficient product mix, CNA is positioned to sustain organic growth and reinforce financial resilience. A Value Score of A instils confidence.
Image: Bigstock
CNA Stock Lost 1% YTD, Trading at a Discount to Industry: Buy The Dip?
Key Takeaways
Shares of CNA Financial (CNA - Free Report) have lost 1.4% year to date, underperforming its industry, the sector, and the Zacks S&P 500 Composite’s growth of 8.8%, 13.8% and 12.8%, respectively, in the same time frame.
The insurer has a market capitalization of $12.9 billion. The average volume of shares traded in the last three months was 0.5 million.
CNA Shares are Affordable
CNA Financial shares are trading at a discount compared to the Zacks Property and Casualty Insurance industry. Its forward price-to-book value of 1.22X is lower than the industry average of 1.54X. It has a Value Score of A.
However, shares of other property and casualty (P&C) insurers like The Allstate Corporation (ALL - Free Report) , Arch Capital Group Ltd. (ACGL - Free Report) and The Progressive Corporation (PGR - Free Report) are trading at a multiple higher than the industry average.
Projections for CNA
The Zacks Consensus Estimate for 2025 revenues is pegged at $13.5 billion, implying a year-over-year improvement of 6.3%. The consensus estimate for CNA Financial’s current-year earnings is pegged at $4.49 per share, down 7% from the year-ago reported figure. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 6.2% and 2.8%, respectively, from the 2025 estimates.
Optimistic Analyst Sentiment on CNA
The Zacks Consensus Estimate for 2025 and 2026 earnings has moved up 2.3% and 0.2% in the past 30 days, respectively.
Average Target Price for CNA Suggests Upside
Based on short-term price targets offered by two analysts, the Zacks average price target is $49 per share. The average indicates a potential 3.5% upside from the last closing price.
Key Points to Note for CNA
CNA Financial continues to show resilience in the P&C space, with disciplined underwriting keeping combined ratios at healthy levels and ensuring steady profitability. Growth is supported by a diverse product portfolio, strong retention, improved pricing, and new business momentum, while investment income benefits from stable fixed-income yields and stronger limited partnership returns.
Across its operating segments, CNA has experienced steady growth in gross premiums, driven by a competitive product mix, strong policy retention and disciplined pricing. Contributions from new businesses have added to this momentum. The company has also achieved notable improvement in its property and casualty combined ratio in recent years, reflecting stronger underwriting discipline and healthier margins.
CNA’s investment engine is driven by a disciplined fixed-income approach, with significant exposure to investment-grade corporates and well-rated municipal securities. This balanced mix provides resilience while the higher rate environment lifts yields, reinforcing earnings quality. Looking ahead, management anticipates generating about $565 million from fixed-income and other investment sources in the third quarter, with 2025 expected to come in near $2.25 billion, a modest 3% improvement over 2024.
Although CNA Financial has maintained steady growth in gross premiums across all segments and continues to deliver solid investment results, the company faces certain challenges. Rising expenses from higher claims, benefits, and amortization of deferred acquisition costs, along with a relatively high debt load, remain key areas to monitor.
Wealth Distribution of CNA
CNA continues to emphasize shareholder value creation through steady capital returns. The company has increased its dividend five times over the past five years, resulting in a five-year annualized growth rate of 4.8%, with a current payout ratio of 40%. It also pays special dividend occasionally. Its dividend yield betters the industry, making it an attractive pick for yield-seeking investors.
Conclusion
With disciplined underwriting, strong policy retention, and steady premium growth, CNA Financial continues to capitalize on its core P&C operations. Coupled with a focused investment approach and efficient product mix, CNA is positioned to sustain organic growth and reinforce financial resilience. A Value Score of A instils confidence.
Given its discount valuation, it is better to add this Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.