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CNA Financial Q3 Earnings Beat Estimates on Solid Underwriting
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Key Takeaways
CNA Financial's Q3 core EPS rose 39% year over year to $1.50, topping estimates by 20%.
Operating revenues grew 6.3% to $3.4B, driven by higher premiums and fixed income investment gains.
P&C combined ratio improved 440 bps to 92.8, aided by reduced catastrophe losses.
CNA Financial Corporation (CNA - Free Report) reported third-quarter 2025 core earnings of $1.50 per share, which beat the Zacks Consensus Estimate by 20%. The bottom line increased 39% year over year.
The quarterly results of CNA reflected higher income from fixed income securities, increased renewal premium change, and higher underwriting income owing to lower catastrophe losses. It was partly offset by escalating expenses.
CNA Financial Corporation Price, Consensus and EPS Surprise
Total operating revenues of CNA Financial were $3.4 billion, up 6.3% year over year due to higher premiums, net investment income, and other revenues. The top line missed the Zacks Consensus Estimate by 0.05%.
Net written premiums of Property & Casualty Operations increased 3.2% year over year to $2.4 billion, driven by P&C renewal premium change of more than 4% with a written rate of over 3% and exposure change of more than 1%.
Net investment income rose 2% year over year to $638 million. The increase was driven by higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates. The Zacks Consensus Estimate and our estimate for net investment were both pegged at $690.5 million.
Total claims, benefits and expenses increased 1.4% to $3.3 billion, primarily due to higher insurance claims and policyholders’ benefits, amortization of deferred acquisition costs, other operating expenses and interest expense. Our estimate was also $3.4 billion.
Catastrophe losses were $41 million pretax, narrower than a loss of $143 million in the year-ago quarter. Underwriting income surged nearly threefold year over year to $194 million, driven by low catastrophe losses. Our estimate was $83.5 million.
The P&C combined ratio improved 440 basis points (bps) year over year to 92.8. Our estimate was 97.2.
Segment Results
Specialty’s net written premiums increased 1% year over year to $867 million. Our estimate was $909.8 million. The combined ratio deteriorated 30 bps to 93.3. The Zacks Consensus Estimate was pegged at 94.
Commercial’s net written premiums increased 2% year over year to $1.2 billion. Our estimate was $1.4 billion. The combined ratio improved 750 bps to 92.7. The Zacks Consensus Estimate was pegged at 99.
International’s net written premiums increased 15% year over year to $319 million. Our estimate was $329.2 million. The combined ratio improved 430 bps to 91.8. The Zacks Consensus Estimate was pegged at 98.
Life & Group’s net earned premiums were $106 million, down 3.6% year over year. Our estimate was $106.2 million. The core loss was $22 million, wider than a loss of $9 million incurred in the year-ago quarter, primarily due to lower net investment income from limited partnerships.
Corporate & Other’s core loss of $25 million was narrower than the loss of $44 million incurred in the year-earlier quarter. Our estimate was $42 million.
Financial Update
The core return on equity expanded 380 basis points year over year at 13.2%. Book value, excluding AOCI, as of Sept. 30, 2025, was $46.30 per share, up 8% from year-end 2024.
As of Sept. 30, 2025, statutory capital and surplus for the Combined Continental Casualty Companies were $11.5 billion, which increased 3.3% from the 2024-end level.
Net cash flow provided by operating activities decreased 3.7% to $720 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 Dec. 4 to shareholders as of Nov. 17.
First American Financial Corporation (FAF - Free Report) reported third-quarter 2025 operating income per share of $1.70, which beat the Zacks Consensus Estimate by 19.7%. The bottom line increased 26.8% year over year. Operating revenues of $1.9 billion increased 40.7% year over year. The top line also beat the Zacks Consensus Estimate by 6.8%.
Investment income was $163.8 million in the third quarter, up 11.7% year over year. Our estimate was $146.6 million. Expenses rose 11.7% to $1.7 billion. Our estimate was $1.6 billion.
Chubb Limited (CB - Free Report) reported third-quarter 2025 core operating income of $7.49 per share, which beat the Zacks Consensus Estimate by 26%. The bottom line increased 30.9% year over year. Net premiums written improved 7.5% year over year to $14.8 billion in the quarter. Our estimate was $14.4 billion while the Zacks Consensus Estimate was pegged at $14.5 billion.
Pre-tax net investment income was $1.65 billion, up 9.3% year over year. Our estimate and the Zacks Consensus Estimate were both pegged at $1.8 billion. Revenues of $16.1 billion beat the consensus estimate by 1.6% and improved 7.4% year over year. Property and casualty (P&C) underwriting income was $2.2 billion, up 55% year over year. The Zacks Consensus Estimate was pegged at $1.4 billion.
W.R. Berkley Corporation's (WRB - Free Report) third-quarter 2025 operating income of $1.10 per share beat the Zacks Consensus Estimate of $1.03 by 2.8%. The bottom line increased 18.3% year over year. Operating revenues came in at $3.6 billion, up 8.2% year over year, on the back of higher net premiums earned as well as improved net investment income and higher insurance service fees. The top line beat the consensus estimate by 0.4%.
W.R. Berkley’s net premiums written were $3.4 billion, up 5.5% year over year. Our estimate was $3.3 billion. The consolidated combined ratio (a measure of underwriting profitability) remained flat year over year at 90.9. The Zacks Consensus Estimate was pegged at 89.6.
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CNA Financial Q3 Earnings Beat Estimates on Solid Underwriting
Key Takeaways
CNA Financial Corporation (CNA - Free Report) reported third-quarter 2025 core earnings of $1.50 per share, which beat the Zacks Consensus Estimate by 20%. The bottom line increased 39% year over year.
The quarterly results of CNA reflected higher income from fixed income securities, increased renewal premium change, and higher underwriting income owing to lower catastrophe losses. It was partly offset by escalating expenses.
CNA Financial Corporation Price, Consensus and EPS Surprise
CNA Financial Corporation price-consensus-eps-surprise-chart | CNA Financial Corporation Quote
Behind Q3 Headlines
Total operating revenues of CNA Financial were $3.4 billion, up 6.3% year over year due to higher premiums, net investment income, and other revenues. The top line missed the Zacks Consensus Estimate by 0.05%.
Net written premiums of Property & Casualty Operations increased 3.2% year over year to $2.4 billion, driven by P&C renewal premium change of more than 4% with a written rate of over 3% and exposure change of more than 1%.
Net investment income rose 2% year over year to $638 million. The increase was driven by higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates. The Zacks Consensus Estimate and our estimate for net investment were both pegged at $690.5 million.
Total claims, benefits and expenses increased 1.4% to $3.3 billion, primarily due to higher insurance claims and policyholders’ benefits, amortization of deferred acquisition costs, other operating expenses and interest expense. Our estimate was also $3.4 billion.
Catastrophe losses were $41 million pretax, narrower than a loss of $143 million in the year-ago quarter. Underwriting income surged nearly threefold year over year to $194 million, driven by low catastrophe losses. Our estimate was $83.5 million.
The P&C combined ratio improved 440 basis points (bps) year over year to 92.8. Our estimate was 97.2.
Segment Results
Specialty’s net written premiums increased 1% year over year to $867 million. Our estimate was $909.8 million. The combined ratio deteriorated 30 bps to 93.3. The Zacks Consensus Estimate was pegged at 94.
Commercial’s net written premiums increased 2% year over year to $1.2 billion. Our estimate was $1.4 billion. The combined ratio improved 750 bps to 92.7. The Zacks Consensus Estimate was pegged at 99.
International’s net written premiums increased 15% year over year to $319 million. Our estimate was $329.2 million. The combined ratio improved 430 bps to 91.8. The Zacks Consensus Estimate was pegged at 98.
Life & Group’s net earned premiums were $106 million, down 3.6% year over year. Our estimate was $106.2 million. The core loss was $22 million, wider than a loss of $9 million incurred in the year-ago quarter, primarily due to lower net investment income from limited partnerships.
Corporate & Other’s core loss of $25 million was narrower than the loss of $44 million incurred in the year-earlier quarter. Our estimate was $42 million.
Financial Update
The core return on equity expanded 380 basis points year over year at 13.2%. Book value, excluding AOCI, as of Sept. 30, 2025, was $46.30 per share, up 8% from year-end 2024.
As of Sept. 30, 2025, statutory capital and surplus for the Combined Continental Casualty Companies were $11.5 billion, which increased 3.3% from the 2024-end level.
Net cash flow provided by operating activities decreased 3.7% to $720 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 Dec. 4 to shareholders as of Nov. 17.
Zacks Rank
CNA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other P&C Insurers
First American Financial Corporation (FAF - Free Report) reported third-quarter 2025 operating income per share of $1.70, which beat the Zacks Consensus Estimate by 19.7%. The bottom line increased 26.8% year over year. Operating revenues of $1.9 billion increased 40.7% year over year. The top line also beat the Zacks Consensus Estimate by 6.8%.
Investment income was $163.8 million in the third quarter, up 11.7% year over year. Our estimate was $146.6 million. Expenses rose 11.7% to $1.7 billion. Our estimate was $1.6 billion.
Chubb Limited (CB - Free Report) reported third-quarter 2025 core operating income of $7.49 per share, which beat the Zacks Consensus Estimate by 26%. The bottom line increased 30.9% year over year. Net premiums written improved 7.5% year over year to $14.8 billion in the quarter. Our estimate was $14.4 billion while the Zacks Consensus Estimate was pegged at $14.5 billion.
Pre-tax net investment income was $1.65 billion, up 9.3% year over year. Our estimate and the Zacks Consensus Estimate were both pegged at $1.8 billion. Revenues of $16.1 billion beat the consensus estimate by 1.6% and improved 7.4% year over year. Property and casualty (P&C) underwriting income was $2.2 billion, up 55% year over year. The Zacks Consensus Estimate was pegged at $1.4 billion.
W.R. Berkley Corporation's (WRB - Free Report) third-quarter 2025 operating income of $1.10 per share beat the Zacks Consensus Estimate of $1.03 by 2.8%. The bottom line increased 18.3% year over year. Operating revenues came in at $3.6 billion, up 8.2% year over year, on the back of higher net premiums earned as well as improved net investment income and higher insurance service fees. The top line beat the consensus estimate by 0.4%.
W.R. Berkley’s net premiums written were $3.4 billion, up 5.5% year over year. Our estimate was $3.3 billion. The consolidated combined ratio (a measure of underwriting profitability) remained flat year over year at 90.9. The Zacks Consensus Estimate was pegged at 89.6.