In their results for the first quarter of 2024, CNA Financial Corporation has reported a net income of $338 million, compared to a net income of $297 million in the prior year quarter.
The firm’s property & casualty (P&C) segments produced core income of $372 million for Q124, representing an increase of $26 million compared to the prior year quarter, which the firm notes was driven by higher investment income and favorable net prior period development, partially offset by higher catastrophe losses.
At the same time, P&C segments – excluding third party captives – generated gross written premium growth of 8% and net written premium growth of 6%, which CNA states was driven by retention of 85%, renewal premium change of +6% and new business growth of 5%.
Meanwhile, CNA posted a P&C combined ratio of 94.6% for the quarter, compared to last year’s 93.9%, which included 3.8 points of catastrophe loss impact compared with 2.4 points in the prior year quarter.
The firm also posted a P&C underlying combined ratio of 91.0% for the quarter, compared with 90.8% in the prior year quarter.
CNA’s net investment losses for Q1 were $17 million compared to $28 million in the prior year quarter
As well as this, core income for the quarter was $355 million, a solid increase compared to $325 million in the prior year quarter.
Additionally, CNA’s life & group segment produced core income of $5 million for the first quarter of 2024, versus core loss of $3 million in the prior year quarter, which the firm notes was driven by higher net investment income.
CNA’s corporate & other segment witnessed a core loss of $22 million for Q124, compared to $18 million in the prior year quarter, which reflects a $5 million after-tax charge related to office consolidation in the current quarter.
Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation, commented: “We are off to an excellent start with a record first quarter core income of $355 million, which benefited from 16% growth in net investment income and continued strong top and bottom line P&C performance. The all-in combined ratio was 94.6% and included 3.8 points of catastrophe loss, which is in line with our five-year first quarter average, and the P&C underlying combined ratio of 91.0% represents the thirteenth consecutive quarter below 92%.
“Gross written premiums ex. captives grew by 8% in the quarter with strong growth in Commercial of 17% as the property market remains very favorable given the correction over the last couple of years, and casualty rate increases continue to accelerate. Growth in Specialty and International were each impacted by the protracted competitive pressures in management liability lines and so we continue to tread lightly in those lines.
“Renewal premium change was up a point to 6% while retention remained strong at 85%. In the U.S., our renewal premium change excluding workers’ compensation was 8%, which is covering our loss cost trends of 6.5%.
“We are very pleased with our disciplined execution in the first quarter and we believe the remainder of 2024 will continue to afford us robust opportunities to grow profitably and continue to build our investment returns.”
