Chicago-based insurer CNA Financial Corporation has published its financial results for the fourth quarter of 2023 reporting a net income of $367 million, a 54% increase compared to the $239 million in the prior year quarter.
Net investment gains for the quarter were $5 million compared to net investment losses of $26 million in the prior year quarter.
Core income for Q4 2023 was $362 million, versus $265 million in the same period last year. CNA’s P&C segment saw a core income of $434 million versus $342 million, driven by higher investment income and higher underwriting income.
P&C segments, excluding third party captives, generated gross written premium and net written premium growth of 10%, driven by new business growth of 16%, retention of 85% and renewal premium change of +5%.
For its Life & Group segment, the insurer reported a core income of $4 million in Q4 2023, compared to the core loss of $25 million in the prior year quarter, which reflects higher investment income, according to CNA.
Its Corporate & Other segment produced a core loss of $76 million versus core loss of $52 million in Q4 2022, which the insurer noted reflects a $19 million after-tax charge related to office consolidation.
Net investment income was up 21% in Q4 2023, to $611 million pretax, including a $58 million increase from limited partnerships and common stock to $78 million and a $50 million increase from fixed income securities and other investments to $533 million.
P&C combined ratio improved to 92.1% in the quarter, compared with 93.7% in the prior year quarter, including 1.0 point of catastrophe loss impact compared with 3.6 points in the prior year quarter and 0.3 points of favourable prior period development impact compared with 1.1 points in the prior year quarter.
P&C underlying combined ratio was 91.4%, compared with 91.2% in the prior year quarter. P&C underlying loss ratio was 59.9% and the expense ratio was 31.2%.
CNA also reported its full year financial results, where its saw its net income grow 77%, a record $1,205 million versus $682 million in the prior year, according to the insurer.
For the full year, the P&C business saw a core income of $1,505 million with a combined ratio of 93.5%. Life & Group saw a core loss of $48 million.
Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation, commented: “We ended the year strong, with core income up 37% to a record high of $362 million in the fourth quarter capping off a record level for the year of $1,284 million, a 54% increase driven by a 25% increase in pretax net investment income and record levels of underlying and all-in underwriting income.
“Net and gross written premiums ex. captives each grew by 10% in the quarter with new business growth of 16%, our strongest quarter of the year. 2023 was also the third year in a row of 10% gross written premiums ex. captives growth and included our highest level of new business of roughly $2.1 billion. Retentions remained strong in the quarter in the mid-80’s and have been so throughout 2023 as we continue to lock in favourable terms and conditions from the hard market, which we feel will largely persist into 2024.
“In the quarter, renewal premium change was 5% in the aggregate across all operating segments and geographies. In Commercial, renewal premium change was 9% in the quarter, consistent with the prior quarter, and excluding workers’ compensation, renewal premium change was 11% continuing to exceed our loss cost trends which remained stable in the quarter.
“We remain optimistic about our opportunities for this year given our broad-based profitability across our three operating segments and track record of double-digit growth levels in the last several years.”
