CNA Financial Corporation (NYSE:CNA) reported third-quarter 2019 core earnings of $1.16 per share, which beat the Zacks Consensus Estimate by 11.5%. However, the bottom line decreased 0.8% year over year.
The improvement stemmed from improved net written premiums, increase in new business and favorable rate.
CNA Financial Corporation Price, Consensus and EPS Surprise
CNA Financial Corporation price-consensus-eps-surprise-chart | CNA Financial Corporation Quote
Behind Third-Quarter Headlines
Net written premiums at Property & Casualty Operations improved 8% year over year to $1.7 billion driven by rate increase and higher new business.
Net investment income almost remained unchanged year over year at $399 million.
Combined ratio deteriorated 340 basis points year over year to 97.6%.
Book value as of Sep 30, 2019 was $44.66 per share, up 8.1% from Dec 31, 2018.
Core return on equity was 3.4%, down 710 basis points.
Segment Results
Specialty’s net written premiums rose nearly 6% year over year to $732 million, driven by strong retention and favorable rate. Combined ratio deteriorated 280 bps to 89.8%.
Commercial’s net written premiums increased 11% year over year to $775 million, driven by higher new business and favorable rate. Combined ratio deteriorated 420 bps to 101.6%.
International’s net written premiums increased 3% year over year to $201 million driven by change in the timing of ceded reinsurance contract renewals. Combined ratio deteriorated 350 bps to 107.4%.
Life & Group’s total operating revenues were $336 million, up 1.2% year over year. Core loss was $122 million against the year-ago income of $32 million.
Corporate & Other’s core loss of $17 million was narrower than loss of $20 million incurred in the prior-year period.
Dividend Update
CNA Financial’s board of directors approved a quarterly dividend of 35 cents to be paid out on Dec 2, 2019 to stockholders of record as of Nov 11.
Zacks Rank
CNA Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Insurance Releases
Of the insurance industry players that have reported third-quarter results so far, Global Life (NYSE:GL) , Arthur J. Gallagher (NYSE:AJG) and RLI Corp. (NYSE:RLI) beat the respective Zacks Consensus Estimate for earnings.
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Arthur J. Gallagher & Co. (AJG): Free Stock Analysis Report
RLI Corp. (RLI): Free Stock Analysis Report
CNA Financial Corporation (CNA): Free Stock Analysis Report
Globe Life Inc. (GL): Free Stock Analysis Report
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