CNA Financial Q3 net income falls, catastrophe losses rise

Overview

• U.S. commercial P&C insurer's Q3 net income and core income fell sharply yr/yr

• Adjusted EPS for Q3 declined yr/yr; only two analyst estimates provided

• P&C segment saw lower underwriting results and higher catastrophe losses

Outlook

• CNA Financial plans to selectively deploy capacity where market conditions provide attractive risk-adjusted returns

• Company says it will maintain underwriting discipline and step back where conditions do not support appropriate pricing

• CNA Financial remains committed to deliberate portfolio management and profitable growth

Result Drivers

• HIGHER CATASTROPHE LOSSES - Co said increased catastrophe losses weighed on P&C core income

• UNDERLYING LOSS RATIO - Co said underlying loss ratio rose 2.2 points yr/yr, with increases across each segment

• LTC RESERVE ASSUMPTION UPDATES - Co said unfavorable after-tax impact from annual long-term care reserve assumption updates drove Life & Group core loss

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "hold"

• Wall Street's median 12-month price target for CNA Financial Corp is $35.00, about 28.1% below its October 30 closing price of $48.68

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)