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1. Company Snapshot

1.a. Company Description

CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States.It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments.The company offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated standard property and casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products.


It also provides property insurance products, such as property, marine, boiler, and machinery coverages; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, and umbrella coverages; specialized loss-sensitive insurance programs and total risk management services; and run-off long term care policies.In addition, the company offers long-tail exposures comprising commercial automobile liability, workers' compensation, general and medical professional liability, other professional and management liability, and assumed reinsurance run-off and products liability; and short-tail exposures, such as property, commercial automobile physical damage, marine, and surety.It markets its products through independent agents, brokers, and general underwriters to small, medium, and large businesses; insurance companies; associations; professionals; and other groups in the marine, oil and gas, construction, manufacturing, life science, property, financial services, healthcare, and technology industries.


The company was founded in 1853 and is headquartered in Chicago, Illinois.CNA Financial Corporation operates as a subsidiary of Loews Corporation.

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1.b. Last Insights on CNA

CNA Financial Corporation's recent performance was driven by solid retention, favorable renewal premium change, and new business growth across its Specialty, Commercial, and International segments. The company's Q4 2024 earnings and revenues surpassed estimates, with core income of $1.25 per share, beating the consensus estimate. Additionally, the company raised its dividend by 5% to $0.46 per share and announced a special dividend of $2 per share, yielding approximately 7.8%. The company's property and casualty operations remain steady, with mid-single digit turnover growth.

1.c. Company Highlights

2. CNA Financial Shines with Record Core Income

CNA Financial Corporation reported a stellar third quarter of 2025, with a record core income of $409 million, driven by a strong underwriting gain and higher net investment income. The underwriting income was $194 million, nearly triple the prior year quarter, with a record underlying underwriting gain of $235 million. Earnings per share (EPS) came in at $1.5, beating analyst estimates of $1.25. The P&C all-in combined ratio was 92.8%, including $41 million of catastrophe losses, and the underlying combined ratio was 91.3%. Net written premiums grew 3%, with operating cash flow remaining strong at $720 million.

Publication Date: Nov -25

📋 Highlights
  • Record Core Income:: Q3 2025 core income reached $409 million, with YTD core income exceeding $1 billion for the first time.
  • Underwriting Performance:: Underwriting income surged to $194 million (up 200% YoY), driven by a record $235 million underlying underwriting gain.
  • Investment Gains:: Net investment income hit $638 million, a $12 million increase YoY, including a $71 million gain from limited partnership and stock portfolios.
  • Financial Strength:: P&C combined ratio at 92.8% (underlying: 91.3%), while net written premiums rose 3% and operating cash flow remained robust at $720 million.
  • Capital Position:: Statutory capital and surplus stood at $11.5 billion, with equity (excluding AOCI) at $12.5 billion, or $46.30 per share.

Underwriting Profitability

The company's underwriting profitability was a key driver of its financial performance, with a record underlying underwriting gain of $235 million. The P&C expense ratio was 29.1% for the third quarter and 29.7% year-to-date, indicating a stable expense profile. As the company noted, "We are balancing market dynamics by growing in areas with an appropriate return and retrenching in others."

Investment Income and Capital Position

Net investment income was $638 million, up $12 million year-over-year, contributing to the company's strong financial performance. The company ended the quarter with a statutory capital and surplus of $11.5 billion and stockholders' equity excluding AOCI of $12.5 billion, or $46.30 per share, indicating a solid balance sheet.

Valuation and Outlook

With a Price-to-Book Ratio (P/B) of 1.11, the company's valuation appears reasonable. The Dividend Yield is 8.26%, providing an attractive return for income investors. Analysts estimate next year's revenue growth at 7.3%, indicating a positive outlook for the company. As CNA continues to grow its excess and surplus (E&S) lines market offering, Cardinal E&S, it is well-positioned to capitalize on emerging opportunities.

Growth Prospects

The company's E&S lines market offering is expected to represent a growing portion of its business as the E&S market continues to expand. With underwriters working closely with brokers and clients, CNA is closing out the year strongly and positioning itself for future growth.

3. NewsRoom

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AM Best Upgrades Credit Ratings of CNA Financial Corporation and Its Subsidiaries

Dec -03

Source: businesswire.com

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CNA Financial: The Moon Of Insurance Stocks - Predictable, Not Shining

Nov -05

Source: seekingalpha.com

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CNA Financial Q3 Earnings Beat Estimates on Solid Underwriting

Nov -04

Source: zacks.com

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CNA Financial Corporation (CNA) Q3 2025 Earnings Call Prepared Remarks Transcript

Nov -03

Source: seekingalpha.com

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Loews Corporation Elects Dino Robusto to Its Board of Directors

Nov -03

Source: prnewswire.com

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CNA FINANCIAL ANNOUNCES THIRD QUARTER 2025 NET INCOME OF $1.48 PER SHARE AND RECORD CORE INCOME OF $1.50 PER SHARE

Nov -03

Source: prnewswire.com

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LOEWS CORPORATION REPORTS NET INCOME OF $504 MILLION FOR THE THIRD QUARTER OF 2025

Nov -03

Source: prnewswire.com

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Best Value Stock to Buy for Oct. 28th

Oct -28

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.78%)

6. Segments

Specialty

Expected Growth: 4.83%

CNA Financial Corporation's Specialty segment growth of 4.83% is driven by increasing demand for specialized insurance products, expansion into new markets, and strategic underwriting initiatives. Additionally, favorable market conditions, improved pricing, and a strong distribution network contribute to the segment's growth.

Commercial

Expected Growth: 4.73%

CNA Financial Corporation's Commercial segment growth of 4.73% is driven by a strong economy, increased demand for commercial insurance products, and strategic pricing initiatives. Additionally, the company's focus on digital transformation, expansion into new markets, and improved underwriting capabilities have contributed to this growth.

Life & Group

Expected Growth: 4.73%

CNA Financial Corporation's Life & Group segment growth of 4.73% is driven by increasing demand for employee benefits, expansion of voluntary benefits offerings, and strategic partnerships. Additionally, favorable underwriting results, rate increases, and a strong economy contribute to the segment's growth.

International

Expected Growth: 4.78%

CNA Financial Corporation's International segment growth of 4.78% is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic partnerships. Additionally, favorable regulatory environments, growing economies, and a strong brand presence contribute to the segment's growth.

Corporate & Other Segment

Expected Growth: 4.77%

The 4.77% growth in Corporate & Other Segment of CNA Financial Corporation is driven by effective capital management, disciplined expense control, and strategic investments in digital capabilities. Additionally, the segment benefits from a favorable interest rate environment, improved operational efficiency, and a strong balance sheet, enabling the company to invest in growth initiatives and drive profitability.

Eliminations

Expected Growth: 4.78%

CNA Financial Corporation's 4.78% growth is driven by strong underwriting results, favorable prior year reserve development, and a steady stream of investment income. Additionally, the company's disciplined expense management and strategic capital allocation have contributed to its growth momentum.

7. Detailed Products

Commercial Insurance

CNA Financial Corporation offers a range of commercial insurance products, including property, liability, and specialty insurance, to help businesses manage risk and protect their assets.

Specialty Insurance

CNA's specialty insurance products provide tailored coverage for unique risks, such as cyber liability, directors and officers liability, and professional liability.

Workers' Compensation Insurance

CNA's workers' compensation insurance provides coverage for employees injured on the job, helping businesses manage the cost of workplace accidents.

Management Liability Insurance

CNA's management liability insurance products provide coverage for directors and officers liability, employment practices liability, and fiduciary liability.

Reinsurance

CNA's reinsurance products provide coverage for insurers, helping them manage risk and improve their capital position.

Risk Management Services

CNA's risk management services provide businesses with risk assessment, mitigation, and management solutions to help them identify and manage risk.

8. CNA Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

CNA Financial Corporation operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand reputation and diversified product offerings help to mitigate the threat of substitutes.

Bargaining Power Of Customers

CNA Financial Corporation's customers have some bargaining power due to the availability of alternative insurance providers. However, the company's strong relationships with its customers and its ability to offer customized solutions help to reduce the bargaining power of customers.

Bargaining Power Of Suppliers

CNA Financial Corporation has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position and long-term relationships with suppliers also help to mitigate the bargaining power of suppliers.

Threat Of New Entrants

The insurance industry has high barriers to entry, including regulatory hurdles and significant capital requirements. While new entrants may emerge, CNA Financial Corporation's established brand and strong market position help to mitigate the threat of new entrants.

Intensity Of Rivalry

The insurance industry is highly competitive, with many established players competing for market share. CNA Financial Corporation faces intense competition from other insurance providers, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.45%
Debt Cost 5.28%
Equity Weight 76.55%
Equity Cost 7.23%
WACC 6.77%
Leverage 30.64%

11. Quality Control: CNA Financial Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
WR Berkley

A-Score: 7.0/10

Value: 5.3

Growth: 7.9

Quality: 6.5

Yield: 4.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Mercury General

A-Score: 6.8/10

Value: 7.3

Growth: 6.9

Quality: 6.6

Yield: 6.0

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
CNA Financial

A-Score: 6.8/10

Value: 6.9

Growth: 4.6

Quality: 6.1

Yield: 10.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Cincinnati Financial

A-Score: 6.7/10

Value: 5.4

Growth: 6.4

Quality: 7.8

Yield: 4.0

Momentum: 7.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Markel

A-Score: 6.4/10

Value: 7.0

Growth: 7.2

Quality: 7.1

Yield: 0.0

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Loews

A-Score: 6.1/10

Value: 6.2

Growth: 6.8

Quality: 5.3

Yield: 0.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

44.3$

Current Price

44.3$

Potential

-0.00%

Expected Cash-Flows