CNA Financial : First Quarter 2026 Press Release

Published: 2026-05-04 06:03:09 ET CNA

Published on 05/04/2026 at 06:03 am EDT

‌FOR IMMEDIATE RELEASE

Net income of $211 million versus $274 million in the prior year quarter; core income of $225 million versus

$281 million in the prior year quarter.

PCC core income of $248 million versus $311 million, reflects lower underlying underwriting results and unfavorable prior period development partially offset by higher net investment income.

Life C Group core loss of $9 million versus core income of $6 million in the prior year quarter.

Corporate C Other core loss of $14 million versus $36 million in the prior year quarter.

Net investment income of $610 million, reflects an $18 million increase from fixed income securities and other investments to $568 million and a $12 million decrease from limited partnerships and common stock to $42 million.

PCC combined ratio of 102.2%, compared with 98.4% in the prior year quarter, including a 3.6 point impact related to catastrophes compared with 3.8 points in the prior year quarter. The current year quarter also includes an unfavorable impact of 4.1 points from net prior period development driven by excess casualty and professional ECO lines in recent accident years, compared to 2.5 points in the prior year quarter.

Catastrophe impacts of $97 million pretax in both the current and prior year quarters.

PCC underlying combined ratio was 94.5%, compared with 92.1% in the prior year quarter. PCC underlying loss ratio was 64.1% and the expense ratio was 29.9%.

PCC segments generated net written premium growth of 1% in the quarter. PCC renewal premium change of

+3%, with written rate of +2%.

Book value per share of $40.13; book value per share excluding AOCI of $45.12, a 1% increase from year-end 2025 adjusting for $2.48 of dividends per share paid.

Board of Directors declares regular quarterly cash dividend of $0.48 per share.

Our Property C Casualty segments delivered core income of $248 million for the first quarter of 2026, a decrease of $63 million compared to the prior year quarter reflecting lower underlying underwriting results and unfavorable prior period development partially offset by higher net investment income. PCC segments generated net written premium growth of 1%.

Our Life C Group segment produced a core loss of $9 million for the first quarter of 2026 versus core income of

$6 million in the prior year quarter.

Our Corporate C Other segment reported a core loss of $14 million for the first quarter of 2026 versus $36 million in the prior year quarter.

CNA Financial declared a quarterly cash dividend of $0.48 per share, payable June 4, 2026 to stockholders of record on May 18, 2026.

($ millions, except per share data)

2026

2025

Net income

$ 211

$ 274

Core income (a)

225

281

Net income per diluted share

$ 0.78

$ 1.00

Core income per diluted share

0.83

1.03

Book value per share

$ 40.13

$ 42.93

Book value per share excluding AOCI

45.12

46.99

(a) Management utilizes the core income (loss) financial measure to monitor the Company's operations. Please refer herein to the Reconciliation of GAAP Measures to Non-GAAP Measures section of this press release for further discussion of this non-GAAP measure.

"In the first quarter we achieved $225 million of core income buoyed by strong investment income and reinforcing our unwavering focus on underwriting discipline. The fundamentals of our business remain strong as we execute deliberate strategies to optimize our portfolio at a time when the industry is experiencing pressure on growth, rate and loss cost trends.

The PCC all-in combined ratio was 102.2% in the quarter and included 3.6 points of catastrophe impact and 4.1 points of prior period development. We took decisive action this quarter to add additional prudence to PCC reserves in recent accident years on excess casualty in Commercial and professional ECO in Specialty, which we view as fundamentally appropriate given the current environment. Our underlying loss ratio of 64.1% also reflects this additional level of prudence, and our underlying combined ratio was 94.5%.

Net written premiums grew 1% in the quarter, new business grew 3% to $581 million and retention was 83%. We grew certain pockets of our portfolio that offer accretive returns and held the line in other areas we felt the market is not supporting an acceptable level of return.

Rate increase was 2% while renewal premium change was up 3% reflecting significant differentiation by business unit and class. For example, we continue to achieve double-digit rate increase in social inflation impacted classes of business, while national accounts property was down double-digit due to the competitive environment in that space.

Looking ahead to the rest of the year, we will continue to operate with confidence and prioritize underwriting discipline. We remain committed to executing in the marketplace as we implement specialized underwriting strategies to achieve profitable growth while maintaining the strength of our balance sheet in the current environment," said Douglas M. Worman, Chairman C Chief Executive Officer of CNA Financial Corporation.

($ millions)

2026

2025

Net written premiums

$ 2,622

$ 2,606

NWP change (% year over year)

Net earned premiums

$ 2,598

$ 2,520

NEP change (% year over year)

Underwriting (loss) gain

$ (59)

$ 40

Net investment income

$ 375

$ 362

Core income

$ 248

$ 311

Loss ratio

71.8

67.8

Less: Effect of catastrophe impacts

3.6

3.8

Less: Effect of unfavorable development-related items

4.1

2.5

Underlying loss ratio

64.1

61.5

Expense ratio

29.9

30.2

Combined ratio

102.2

98.4

Underlying combined ratio

94.5

92.1

The underlying combined ratio increased 2.4 points as compared with the prior year quarter, primarily the result of a 2.6 point increase in the underlying loss ratio to 64.1%, with increases across each segment. The expense ratio improved 0.3 points compared with the prior year quarter.

The combined ratio increased 3.8 points as compared with the prior year quarter. Unfavorable net prior period development in the Specialty and Commercial segments increased the loss ratio by 4.1 points in the current quarter compared to 2.5 points in the prior year quarter. Catastrophe impacts were

$97 million in the quarter, inclusive of $9 million of catastrophe-related reinsurance reinstatement premiums, compared with $97 million for the prior year quarter. The effect of catastrophe impacts on the loss ratio was 3.6 points in the quarter compared with 3.8 points for the prior year quarter.

($ millions)

2026

2025

Net written premiums

$ 834

$ 842

NWP change (% year over year)

(1)

Net earned premiums

$ 852

$ 830

NEP change (% year over year)

Underwriting (loss) gain

$ (24)

$ 42

Loss ratio

Less: Effect of catastrophe impacts

Less: Effect of unfavorable development-related items

68.7

5.9

61.4

1.3

Underlying loss ratio

62.8

60.1

Expense ratio

33.6

33.4

Combined ratio

102.7

95.1

Underlying combined ratio

96.8

93.8

The underlying combined ratio increased 3.0 points as compared with the prior year quarter. The underlying loss ratio increased 2.7 points as compared with the prior year quarter reflecting loss cost trends exceeding rate for certain lines in recent quarters. The expense ratio increased 0.2 points as compared with the prior year quarter.

The combined ratio increased 7.6 points as compared with the prior year quarter. Unfavorable net prior period development, driven by professional errors C omissions (ECO) business in recent accident years, increased the loss ratio by 5.9 points in the current quarter as compared with 1.3 points in the prior year quarter.

($ millions)

2026

2025

Net written premiums

$ 1,480

$ 1,498

NWP change (% year over year)

(1)

Net earned premiums

$ 1,412

$ 1,380

NEP change (% year over year)

Underwriting loss

$ (49)

$ (17)

Loss ratio

76.2

73.0

Less: Effect of catastrophe impacts

6.4

6.3

Less: Effect of unfavorable development-related items

4.0

3.8

Underlying loss ratio

65.8

62.9

Expense ratio

26.7

27.6

Combined ratio

103.5

101.1

Underlying combined ratio

93.1

91.0

The underlying combined ratio increased 2.1 points as compared with the prior year quarter. The underlying loss ratio increased 2.9 points compared with the prior year quarter as a result of increases in excess casualty and workers' compensation. The expense ratio improved 0.9 points primarily due to a favorable acquisition ratio.

The combined ratio increased 2.4 points as compared with the prior year quarter. Unfavorable net prior period development, driven by excess casualty in recent accident years, increased the loss ratio by 4.0 points in the current quarter compared with 3.8 points in the prior year quarter. Catastrophe impacts were $93 million in the quarter, inclusive of $9 million of catastrophe-related reinsurance reinstatement premiums, compared with $86 million for the prior year quarter. The effect of catastrophe impacts on the loss ratio was 6.4 points in the quarter compared with 6.3 points for the prior year quarter.

($ millions)

2026

2025

Net written premiums

$ 308

$ 266

NWP change (% year over year)

Net earned premiums

$ 334

$ 310

NEP change (% year over year)

Underwriting gain

$ 14

$ 15

Loss ratio

61.0

62.1

Less: Effect of catastrophe impacts

1.2

3.6

Less: Effect of (favorable) unfavorable development-related items

Underlying loss ratio

59.8

58.5

Expense ratio

34.9

33.3

Combined ratio

95.9

95.4

Underlying combined ratio

94.7

91.8

The underlying combined ratio increased 2.9 points as compared with the prior year quarter. The expense ratio increased 1.6 points attributed to higher employee related costs and acquisition costs partially offset by net earned premium growth of 8%. The underlying loss ratio increased 1.3 points as compared with the prior year quarter driven by continued pricing pressure.

The combined ratio increased 0.5 points as compared with the prior year quarter. Catastrophe losses were $4 million, or 1.2 points of the loss ratio in the quarter compared with $11 million or 3.6 points of the loss ratio, for the prior year quarter.

Excluding currency fluctuations, net written premiums grew 7% for the first quarter of 2026.

($ millions)

2026

2025

Net earned premiums

$ 103

$ 106

Claims, benefits and expenses

344

330

Net investment income

$ 224

$ 226

Core (loss) income

$ (9)

$ 6

Core results decreased $15 million for the first quarter of 2026 as compared with the prior year quarter. Results for the current year quarter reflect unfavorable morbidity partially offset by favorable persistency. Results for the prior year quarter reflected favorable persistency.

($ millions)

2026

2025

Insurance claims and policyholders' benefits

$ (17)

$ 9

Interest expense

Net investment income

Core loss

(14)

(36)

Core loss improved $22 million for the first quarter of 2026 as compared with the prior year quarter. There was no prior period development in the current year quarter compared to a $17 million after-tax charge in the prior year quarter related to unfavorable prior period development associated with legacy mass tort.

2026

2025

Fixed income securities and other

$ 568

$ 550

Limited partnership and common stock investments

Net investment income

$ 610

$ 604

Net investment income increased $6 million for the first quarter of 2026. The increase was driven by higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates partially offset by lower common stock returns.

Stockholders' equity of $10.9 billion decreased 7% from year-end 2025, primarily due to dividends paid to stockholders and an increase in net unrealized investment losses partially offset by net income.

Book value per share ex AOCI of $45.12 increased 1% from year-end 2025 adjusting for $2.48 of dividends per share.

As of March 31, 2026, statutory capital and surplus for the Combined Continental Casualty Companies was

$11.1 billion.

CNA is one of the largest U.S. commercial property and casualty insurance companies. Backed by more than 125 years of experience, CNA provides a broad range of standard and specialized insurance products and services for businesses and professionals in the U.S., Canada and Europe. For more information, please visit CNA at cna.com.

Media: Analysts:

872-817-0350 312-822-3834

A transcript of earnings remarks will be available on CNA's website at cna.com via the Investor Relations section. Remarks will include commentary from the Company's Chairman and Chief Executive Officer, Douglas M. Worman, and Chief Financial Officer, Scott R. Lindquist. An earnings presentation and financial supplement information related to the results will also be posted and available on the CNA website.

Management utilizes the following metrics in their evaluation of the Property C Casualty Operations.

These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).

The underlying loss ratio and the underlying combined ratio are deemed to be non-GAAP financial measures, and management believes some investors may find these ratios useful to evaluate our underwriting performance since they remove the impact of catastrophes, which are unpredictable as to timing and amount, and development-related items as they are not indicative of our current year underwriting performance. The components to reconcile the combined ratio and loss ratio to the underlying combined ratio and underlying loss ratio for Property C Casualty, Specialty, Commercial and International segments are set forth on pages 3, 4, 5 and 6, respectively.

The Company's investment portfolio is monitored by management through analysis of various factors including unrealized gains and losses on securities, portfolio duration and exposure to market and credit risk.

Management utilizes financial measures not in accordance with GAAP to monitor the Company's insurance operations and investment portfolio. The Company believes the presentation of these measures provides investors with a better understanding of the significant factors that comprise the Company's operating performance. Reconciliations of these measures to the most comparable GAAP measures follow below.

Reconciliation of Net Income (Loss) to Core Income (Loss)

Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses and gains or losses resulting from pension settlement transactions. Net investment gains or losses are excluded from the calculation of core income (loss) because they are generally driven by economic factors that are not necessarily reflective of our primary operations. The calculation of core income (loss) excludes gains or losses resulting from pension settlement transactions as they result from decisions regarding our defined benefit pension plans which are unrelated to our primary operations. Management monitors core income (loss) for each business segment to assess segment performance. Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure.

($ millions)

2026

2025

Net income

211

274

Less: Net investment losses

(14)

(7)

Core income

$ 225

$ 281

Reconciliation of Net Income (Loss) per Diluted Share to Core Income (Loss) per Diluted Share

2026

2025

0.78

1.00

(0.05)

(0.03)

0.83

1.03

Net income per diluted share Less: Net investment losses Core income per diluted share

Reconciliation of Net Income (Loss) to Underwriting Gain (Loss) and Underlying Underwriting Gain (Loss)

Specialty

Commercial

International

Casualty

(In millions)

Net income

$ 95

$ 105

$ 36

$ 236

Net investment losses, after tax

Core income

$ 99

$ 112

$ 37

$ 248

Less:

Net investment income

142

190

375

Non-insurance warranty revenue (expense)

Other revenue (expense), including interest expense

(11)

(2)

(15)

Income tax expense on core income

(26)

(27)

(18)

(71)

Underwriting (loss) gain

(24)

(49)

(59)

Catastrophe-related reinstatement premiums

Catastrophe losses

Effect of unfavorable development-related items

106

Underlying underwriting gain

$ 26

$ 100

$ 18

$ 144

Specialty

Commercial

International Casualty

(In millions)

Net income

$ 149

$ 124

$ 38 $ 311

Net investment losses (gains), after tax

(1) -

Core income

$ 150

$ 124

$ 37 $ 311

Less:

Net investment income

151

177

362

Non-insurance warranty revenue (expense)

Other revenue (expense), including interest expense

(14)

(2)

(15)

Income tax expense on core income

(41)

(34)

(13)

(88)

Underwriting gain (loss)

(17)

Catastrophe-related reinstatement premiums

Catastrophe losses

Effect of unfavorable development-related items

Underlying underwriting gain

$ 52

$ 122

$ 26

$ 200

Reconciliation of Book Value per Share to Book Value per Share Excluding AOCI

Book value per share

$ 40.13

$ 42.93

Less: Per share impact of AOCI

(4.99)

(4.06)

Book value per share excluding AOCI

$ 45.12

$ 46.99

Calculation of Return on Equity and Core Return on Equity

($ millions)

2026

2025

Annualized net income

$ 845

$ 1,096

Average stockholders' equity including AOCI (a)

11,239

10,396

Return on equity

7.5

% 10.5 %

Annualized core income

$ 901

$ 1,125

Average stockholders' equity excluding AOCI (a)

12,462

12,284

Core return on equity

7.2

% 9.2 %

(a) Average stockholders' equity is calculated using a simple average of the beginning and ending balances for the period.

For additional information, please refer to CNA's most recent 10-K on file with the Securities and Exchange Commission, as well as the financial supplement, available at cna.com.

This press release includes statements that relate to anticipated future events (forward-looking statements) rather than actual present conditions or historical events. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as "believes," "expects," "intends," "anticipates," "estimates" and similar expressions. Forward-looking statements, by their nature, are subject to a variety of inherent risks and uncertainties that could cause actual results to differ materially from the results projected. Many of these risks and uncertainties cannot be controlled by CNA. For a detailed description of these risks and uncertainties, please refer to CNA's filings with the Securities and Exchange Commission, available at cna.com.

Any forward-looking statements made in this press release are made by CNA as of the date of this press release. Further, CNA does not have any obligation to update or revise any forward-looking statement contained in this press release, even if CNA's expectations or any related events, conditions or circumstances change.

Any descriptions of coverage under CNA policies or programs in this press release are provided for convenience only and are not to be relied upon with respect to questions of coverage, exclusions or limitations. With regard to all such matters, the terms and provisions of relevant insurance policies are primary and controlling. In addition, please note that all coverages may not be available in all states.

"CNA" is a registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the "CNA" trademark in connection with insurance underwriting and claims activities. Copyright © 2026 CNA. All rights reserved.

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Disclaimer

CNA Financial Corporation published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 10:02 UTC.