CNA Financial Q3 Earnings, Revenues Top Estimates, Rise Y/Y

Core Insights - CNA Financial Corporation reported third-quarter 2024 core earnings of $1.08 per share, exceeding the Zacks Consensus Estimate by 2.9% and reflecting a year-over-year increase of 1.9% [1] - Total operating revenues reached$ 3.2 billion, an 8.8% increase year over year, driven by higher premiums and net investment income, surpassing the Zacks Consensus Estimate by 2.3% [2] - Net investment income rose 13.2% year over year to $626 million, attributed to higher income from fixed-income securities and limited partnerships [3] Financial Performance - Net written premiums for Property & Casualty Operations increased 8% year over year to$ 2.4 billion, supported by an 85% retention rate and a 5% renewal premium change [2] - Total claims, benefits, and expenses increased 8% to $3.3 billion, primarily due to higher insurance claims and policyholders' benefits [4] - Catastrophe losses amounted to$ 143 million, compared to $94 million in the same quarter last year, while underwriting income declined 48% year over year to$ 68 million [4] Segment Results - Specialty's net written premiums increased 4% year over year to $862 million, with a combined ratio deteriorating by 290 basis points to 93 [5] - Commercial's net written premiums rose 14% year over year to$ 1.2 billion, with a combined ratio deteriorating by 130 basis points to 100.2 [6] - Life & Group's net earned premiums were $110 million, down 1.8% year over year, while the core loss narrowed to$ 9 million from a loss of $29 million in the previous year [7] Financial Metrics - The core return on equity remained flat year over year at 9.4%, with book value per share at$ 46.50, a 0.2% increase from the end of 2023 [8] - Net cash flow from operating activities decreased by 9.7% to $748 million in the quarter [9] Dividend Announcement - CNA Financial's board approved a quarterly dividend of 44 cents per share, scheduled for payment on December 5 to shareholders as of November 18 [10]