CNA Financial Reports Q1 2025 Results with Decreased Net Income and Increased Operating Revenues

CNA Financial Corporation reported its financial results for the first quarter of 2025, revealing a net income of $166.4 million, a decrease from $240.4 million in the same period of 2024. The company's core income, which excludes net investment gains or losses, fell by $74 million year-over-year, primarily due to lower underwriting results, despite an increase in net investment income. Total operating revenues for the quarter reached $1.5 billion, up from $1.4 billion in the prior year, driven by higher net earned premiums and investment income.

The company experienced significant changes in its claims and expenses, with catastrophe losses rising to $97 million in the first quarter of 2025, compared to $88 million in the previous year. This increase was largely attributed to severe weather events, including $53 million related to California wildfires. Additionally, CNA reported unfavorable net prior year loss reserve development of $83 million, contrasting with favorable development of $7 million in the same quarter of 2024. The combined ratio for the Property & Casualty Operations segment increased to 101.1%, reflecting a 3.5-point rise from the previous year, primarily due to higher loss ratios.

CNA Financial has also made strategic moves, including the repurchase of 700,000 shares of its common stock at a cost of $34 million during the quarter. The company declared a cash dividend of $2.46 per share, which included a special cash dividend of $2.00 per share. The total stockholders' equity as of March 31, 2025, was reported at $10.3 billion, down from $10.5 billion at the end of 2024.

Operationally, CNA's total investments increased to $48.0 billion from $47.5 billion at the end of 2024, with fixed maturity securities at fair value rising to $42.0 billion. The company reported a total of 3.7 million insurance policies in force, reflecting a stable customer base. The company’s cash flow from operating activities improved to $638 million, compared to $504 million in the prior year, indicating stronger operational cash generation.

Looking ahead, CNA Financial anticipates continued challenges in the insurance market, particularly regarding claims and loss reserves. The company remains focused on enhancing its underwriting performance and managing its investment portfolio to align with its long-term liabilities. The outlook for the remainder of 2025 includes expectations for stable premium growth and ongoing evaluation of its claims reserves in light of market conditions.