Why Is CNA Financial (CNA) Up 3.3% Since Last Earnings Report?

Core Viewpoint - CNA Financial's second-quarter 2024 earnings report showed a mixed performance, with core earnings per share missing estimates but revenues increasing year over year. The company faces challenges with underwriting income and rising expenses, leading to a cautious outlook for future performance [2][3][14]. Financial Performance - Core earnings for Q2 2024 were reported at $1.19 per share, missing the Zacks Consensus Estimate by 1.6%, but reflecting a year-over-year increase of 5.3% [2] - Total operating revenues reached $3.1 billion, up 6.7% year over year, surpassing the Zacks Consensus Estimate by 1.3% [3] - Net investment income rose 7.4% year over year to $618 million, driven by higher income from fixed income securities and a larger invested asset base [4] - Total claims, benefits, and expenses increased by 7.3% to $2.6 billion, primarily due to higher insurance claims and related expenses [5] Underwriting and Premiums - Underwriting income declined 10.1% year over year to $124 million, with a combined ratio deteriorating by 100 basis points to 94.8 [6] - Net written premiums for Property & Casualty Operations increased by 6% year over year to $2.6 billion, supported by an 85% retention rate and a 5% renewal premium change [3] - Specialty's net written premiums rose 4% to $857 million, while Commercial's net written premiums increased by 10% to $1.4 billion [7] Segment Results - International's net written premiums remained flat at $359 million, with a combined ratio improving by 30 basis points to 91.9 [8] - Life & Group's net earned premiums decreased by 3.5% to $109 million, but the core loss narrowed significantly compared to the previous year [9] Financial Metrics - Core return on equity expanded by 40 basis points to 10.6%, while book value per share decreased by 1.1% to $45.86 [10] - Statutory capital and surplus for the Combined Continental Casualty Companies increased by 0.7% to $11 billion [10] - Net cash flow from operating activities increased by 23% to $616 million [10] Dividend Information - The board of directors approved a quarterly dividend of 44 cents per share, payable on August 29 to shareholders as of August 12 [11] Market Sentiment and Outlook - There has been a downward trend in earnings estimates, with a consensus estimate shift of -6.02% [12] - CNA Financial holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [14] Industry Comparison - CNA Financial operates within the Zacks Insurance - Property and Casualty industry, where Kinsale Capital Group has shown a 5.6% gain over the past month [15] - Kinsale Capital Group reported revenues of $384.55 million, reflecting a year-over-year change of +30% [16]