Chicago-domiciled insurer, CNA Financial Corporation has reported a net income of $317 million for the second quarter of 2024, a solid increase from the previous year’s $283 million.
At the same time, the company stated that net investment losses for the quarter were $9 million compared to $25 million in the prior year quarter, while core income for Q2 2024 sat at $326 million, versus $308 million, in Q2 2023.
The $18 million increase in core income in Q2, played a vital role in CNA Financial achieving a record core income of $681 million for the first half of 2024.
A notable performance came from the company’s Property & Casualty (P&C) segments, which produced core income of $380 million for the second quarter of 2024, marking an increase of $6 million compared to the prior year quarter. CNA Financial attributed this increase towards higher investment income partially offset by higher catastrophe losses.
Additionally, the firm’s P&C segments – excluding third party captives – generated gross written premium growth of 7% and net written premium growth of 6%, driven by retention of 85% and renewal premium change of +5%.
CNA Financial also posted a P&C combined ratio of 94.8%, compared to 93.8% in the prior year quarter, which includes 3.5 points of catastrophe loss impact compared with 3.1 points in the prior year quarter.
The company’s P&C underlying combined ratio sat at 91.6% for Q2 2024, compared to Q2 2023’s 91.1%, while P&C underlying loss ratio was 60.6% and the expense ratio was 30.7%.
Meanwhile, CNA Financial’s Life & Group segment generated a core loss of $1 million for the quarter, compared to a $20 million core loss in the prior year quarter.
As well as this, the firm’s Corporate & Other segment produced a core loss of $53 million for the second quarter of 2024, versus $46 million in the prior year quarter.
“We produced outstanding results in the quarter with an $18 million increase in core income to $326 million, leading to record core income in the first half of 2024. Net investment income was up 7% as yields in our fixed income portfolio increased again this quarter and our alternatives portfolio generated strong returns,” commented Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.
Adding: “Despite the elevated industry catastrophe losses, the all-in combined ratio for overall P&C was 94.8%, inclusive of pretax catastrophe losses of $82 million or 3.5 points which was consistent with our recent five year average.
“The P&C underlying combined ratio was 91.6%, which generated the fifth consecutive quarter of underlying underwriting gain of $200 million or more with all three business segments contributing meaningfully to the bottom line.
“Gross written premium ex. captives was up 7%, including continued strong growth in Commercial of 12%. Net written premium was up 6%. New business grew 7% to a record high. The overall P&C retention remained strong at 85% for the quarter. Overall rate change remained stable at 4%, but improved one point to 7% in Commercial. In classes with higher loss cost trends like auto and excess casualty, written rate change continues to be low double-digit, exceeding their long run loss cost trends.”
He concluded: “We continue to effectively navigate the individual cycle dynamics in the different areas of our business, growing where we see the best profitable opportunities. With strong execution and a continued favorable fixed income investment environment, we remain optimistic about the latter half of the year.”
