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{\"0\":\"CNA reported Q2 core EPS of $1.23, beating the estimate by 30.9%.\",\"1\":\"Total operating revenues rose 7.7% year over year to $3.4 billion.\",\"2\":\"Underwriting income increased 20.9% to $150 million in the quarter.\"}
CNA Financial Corporation (CNA - Free Report) reported second-quarter 2025 core earnings of $1.23 per share, which beat the Zacks Consensus Estimate by 30.9%. Moreover, the bottom line increased 3.4% year over year.
The quarterly results of CNA reflected higher income from fixed income securities, a larger invested asset base, improved underwriting income, partly offset by escalating expenses.
Behind Second-Quarter Headlines
Total operating revenues of CNA Financial were $3.4 billion, up 7.7% year over year due to higher premiums, net investment income and other revenues. The top line beat the Zacks Consensus Estimate by 3.5%.
CNA Financial Corporation Price, Consensus and EPS Surprise
Net written premiums of Property & Casualty Operations improved 6.4% year over year to $2.8 billion. Our estimate was pegged at $2.7 billion.
Net investment income rose 7.1% year over year to $662 million. The increase was driven by higher income from fixed income securities because of a larger invested asset base and favorable reinvestment rates, as well as favorable limited partnership and common stock returns. Our estimate for net investment was $686.6 million. The Zacks Consensus Estimate was pegged at $687 million.
Total claims, benefits, and expenses increased 7.1% year over year to $3.3 billion, primarily due to higher insurance claims and policyholders' benefits and amortization of deferred acquisition costs. Our estimate was $2.5 billion.
Catastrophe losses were $62 million, narrower than a loss of $82 million in the year-ago quarter.
Underwriting income climbed 20.9% year over year to $150 million. The combined ratio improved 70 basis points (bps) year over year to 94.8. The Zacks Consensus Estimate was pegged at 93.6, while our estimate was 100.
Segment Results
Specialty’s net written premiums increased 4.1% year over year to $892 million. Our estimate was $867.7 million. The combined ratio deteriorated 90 bps to 93.6. The Zacks Consensus Estimate was pegged at 95.
Commercial’s net written premiums increased 7.2% year over year to $1.6 billion, which missed our estimate by whiskers. The combined ratio improved 220 bps to 94.8. The Zacks Consensus Estimate was pegged at 100.
International’s net written premiums remained flat year over year at $391 million. Our estimate was $338.6 million. The combined ratio deteriorated 90 bps to 92.8. The Zacks Consensus Estimate was pegged at 105.
Life & Group’s net earned premiums were $106 million, down 2.8% year over year. Our estimate was $104.8 million. The core income was $1 million, narrower than the loss of $1 million incurred in the year-ago quarter.
Corporate & Other’s core loss of $114 million was wider than the loss of $53 million incurred in the year-earlier quarter.
Financial Update
The core return on equity expanded 40 bps to 11%. Book value, excluding AOCI, as of June 30 was $45.25 per share, down 2% from the 2024-end level. Statutory capital and surplus for the Combined Continental Casualty Companies increased 0.3% from the 2024-end level to $11.2 billion at the second-quarter end.
Net cash flow provided by operating activities decreased year over year 8.8% to $562 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 Sept. 4, 2025, to stockholders of record on Aug. 18, 2025.
Cincinnati Financial Corporation (CINF - Free Report) reported second-quarter 2025 operating income of $1.97 per share, which surpassed the Zacks Consensus Estimate by 41.7%. The bottom line increased 52.7% year over year. Total operating revenues in the quarter under review were $2.8 billion, which improved 15.3% year over year. This improvement was driven by higher earned premiums, investment income and other revenues. However, the top line missed the consensus mark by 0.1%.
Net written premiums climbed 11.1% year over year to $2.7 billion, driven by premium growth initiatives, price increases and a higher level of insured exposures, as well as contributions to growth from Cincinnati Re and Cincinnati Global.
Investment income, net of expenses, increased 17.8% year over year to $285 million and our estimate of $269.6 million.
First American Financial (FAF - Free Report) reported a second-quarter 2025 operating income per share of $1.53, which beat the Zacks Consensus Estimate by 9.3%. The bottom line increased 20.5% year over year. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%.
Chubb Limited (CB - Free Report) reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.
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CNA Financial Q2 Earnings Beat Estimates, Revenues Increase Y/Y
Key Takeaways
CNA Financial Corporation (CNA - Free Report) reported second-quarter 2025 core earnings of $1.23 per share, which beat the Zacks Consensus Estimate by 30.9%. Moreover, the bottom line increased 3.4% year over year.
The quarterly results of CNA reflected higher income from fixed income securities, a larger invested asset base, improved underwriting income, partly offset by escalating expenses.
Behind Second-Quarter Headlines
Total operating revenues of CNA Financial were $3.4 billion, up 7.7% year over year due to higher premiums, net investment income and other revenues. The top line beat the Zacks Consensus Estimate by 3.5%.
CNA Financial Corporation Price, Consensus and EPS Surprise
CNA Financial Corporation price-consensus-eps-surprise-chart | CNA Financial Corporation Quote
Net written premiums of Property & Casualty Operations improved 6.4% year over year to $2.8 billion. Our estimate was pegged at $2.7 billion.
Net investment income rose 7.1% year over year to $662 million. The increase was driven by higher income from fixed income securities because of a larger invested asset base and favorable reinvestment rates, as well as favorable limited partnership and common stock returns. Our estimate for net investment was $686.6 million. The Zacks Consensus Estimate was pegged at $687 million.
Total claims, benefits, and expenses increased 7.1% year over year to $3.3 billion, primarily due to higher insurance claims and policyholders' benefits and amortization of deferred acquisition costs. Our estimate was $2.5 billion.
Catastrophe losses were $62 million, narrower than a loss of $82 million in the year-ago quarter.
Underwriting income climbed 20.9% year over year to $150 million. The combined ratio improved 70 basis points (bps) year over year to 94.8. The Zacks Consensus Estimate was pegged at 93.6, while our estimate was 100.
Segment Results
Specialty’s net written premiums increased 4.1% year over year to $892 million. Our estimate was $867.7 million. The combined ratio deteriorated 90 bps to 93.6. The Zacks Consensus Estimate was pegged at 95.
Commercial’s net written premiums increased 7.2% year over year to $1.6 billion, which missed our estimate by whiskers. The combined ratio improved 220 bps to 94.8. The Zacks Consensus Estimate was pegged at 100.
International’s net written premiums remained flat year over year at $391 million. Our estimate was $338.6 million. The combined ratio deteriorated 90 bps to 92.8. The Zacks Consensus Estimate was pegged at 105.
Life & Group’s net earned premiums were $106 million, down 2.8% year over year. Our estimate was $104.8 million. The core income was $1 million, narrower than the loss of $1 million incurred in the year-ago quarter.
Corporate & Other’s core loss of $114 million was wider than the loss of $53 million incurred in the year-earlier quarter.
Financial Update
The core return on equity expanded 40 bps to 11%. Book value, excluding AOCI, as of June 30 was $45.25 per share, down 2% from the 2024-end level. Statutory capital and surplus for the Combined Continental Casualty Companies increased 0.3% from the 2024-end level to $11.2 billion at the second-quarter end.
Net cash flow provided by operating activities decreased year over year 8.8% to $562 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 Sept. 4, 2025, to stockholders of record on Aug. 18, 2025.
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.
Performance of Other Insurers
Cincinnati Financial Corporation (CINF - Free Report) reported second-quarter 2025 operating income of $1.97 per share, which surpassed the Zacks Consensus Estimate by 41.7%. The bottom line increased 52.7% year over year. Total operating revenues in the quarter under review were $2.8 billion, which improved 15.3% year over year. This improvement was driven by higher earned premiums, investment income and other revenues. However, the top line missed the consensus mark by 0.1%.
Net written premiums climbed 11.1% year over year to $2.7 billion, driven by premium growth initiatives, price increases and a higher level of insured exposures, as well as contributions to growth from Cincinnati Re and Cincinnati Global.
Investment income, net of expenses, increased 17.8% year over year to $285 million and our estimate of $269.6 million.
First American Financial (FAF - Free Report) reported a second-quarter 2025 operating income per share of $1.53, which beat the Zacks Consensus Estimate by 9.3%. The bottom line increased 20.5% year over year. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%.
Chubb Limited (CB - Free Report) reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.