CHICAGO - CNA Financial Corporation (NYSE: CNA) announced a strong start to the year with record first-quarter core income, although its earnings per share (EPS) fell short of analyst expectations.
The company reported a first-quarter EPS of $1.30, which was below the analyst estimate of $1.40. Despite the EPS miss, the company's net income rose to $338 million, a 14% increase from the $297 million reported in the same quarter of the previous year.
Core income also saw a significant rise, reaching $355 million, up 9% from $325 million in the prior-year quarter.
The company's Property & Casualty (P&C) core income stood at $372 million, driven by higher investment income and favorable net prior year development, although partially offset by increased catastrophe losses. P&C segments, excluding third party captives, experienced an 8% growth in gross written premium and a 6% increase in net written premium.
The P&C combined ratio was 94.6%, slightly higher than the 93.9% reported in the first quarter of the previous year.
CNA Financial's net investment income saw a notable increase of 16% to $609 million pretax. This improvement includes a $44 million rise from fixed income securities and other investments, and a $40 million surge from limited partnerships and common stock investments.
Chairman & Chief Executive Officer Dino E. Robusto expressed satisfaction with the company's disciplined execution, attributing the record core income to robust growth in net investment income and consistent top and bottom line P&C performance. He highlighted the company's ability to maintain a P&C underlying combined ratio below 92% for the thirteenth consecutive quarter.
Despite the positive financial results, the company's stock movement and the driver of the move were not provided, leaving the market response to these earnings unclear. However, the company's overall financial health appears solid, with a book value per share excluding Accumulated Other Comprehensive Income (AOCI) of $45.10, reflecting a 2% increase from year-end 2023 after adjusting for dividends per share.
CNA Financial declared a quarterly dividend of $0.44 per share, payable on June 6, 2024, to stockholders of record as of May 20, 2024. The company remains one of the largest U.S. commercial property and casualty insurance companies, with a history spanning over 125 years.
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