CNA Announces Q4, 2018 Results

TL; DR:

At the end of 2012, CNA was the 7th largest commercial insurer 
& the 13th largest P&C insurer in the US.

At the end of 2016, CNA was the 8th largest commercial 
insurance writer & the 14th largest P&C insurer.

At the end of 2017, CNA was the 8th largest commercial insurer.

Today, "CNA is one of the largest US commercial P&C insurance companies."

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CNA Financial Corporation has announced a fourth quarter 2018 net loss of $84 million , or $(0.31) per share, and a core loss of $23 million, or $(0.08) per share, with catastrophe losses and investment returns from limited partnership and common equities accounting for $(0.82) per diluted share.  Property & Casualty Operations combined ratio for the fourth quarter was 105.4% and the underlying combined ratio was 98.0%. Property & Casualty Operations net written premium increased 4% compared with the prior year quarter.

Fourth quarter 2018 core results decreased $309 million from the prior year period. Contributing to this variance was lower investment returns on our limited partnership and common equity portfolios of $143 million, higher net catastrophe losses of $91 million and higher non-catastrophe current accident year losses driven by increased property losses as well as increased professional liability losses in our London operation.

Core income (loss) for our Life & Group and Corporate & Other segments was $7 million and $(46) million, respectively.

CNA Financial declared a quarterly dividend of $0.35 per share and a special dividend of $2.00 per share, payable March 14, 2019 to stockholders of record on February 25, 2019.

• The fourth quarter combined ratio excluding catastrophes and development increased 2.2 points compared with the prior year quarter driven by a 3.7 point increase in the underlying loss ratio primarily due to elevated property losses and professional liability in our London operation.  This was partially offset by a 1.4 point improvement in the expense ratio driven by lower employee costs and higher net earned premiums.For the full year, the combined ratio excluding catastrophes and development improved 0.1 point compared with the prior year driven by a 1.0 point improvement in the expense ratio primarily due to  higher net earned premiums and lower employee costs partially offset by a 0.8 point increase in the underlying loss ratio.
• The fourth quarter combined ratio increased 11.4 points compared with the prior year quarter.  Net catastrophe losses were $146 million, or 8.6 points of the loss ratio in the quarter compared with $38 million, or 2.3 points of the loss ratio, for the prior year quarter.  Favorable net prior period development improved the loss ratio by 1.2 points in the quarter compared with a 4.1 point improvement in the prior year quarter.For the full year, the combined ratio improved 0.4 points compared with the prior year.  Net catastrophe losses were $252 million, or 3.7 points of the loss ratio for the full year compared with $380 million, or 6.0 points of the loss ratio, for the prior year.  Favorable net prior period development improved the loss ratio by 2.4 points in the current year compared with a 4.4 point improvement in the prior year.
• Net written premiums grew 4% in the quarter and for the full year.

• The fourth quarter combined ratio excluding catastrophes and development improved 0.2 points compared with the prior year quarter driven by a 0.3 point improvement in the underlying loss ratio. For the full year, the combined ratio excluding catastrophes and development improved 1.1 points.
• The combined ratio for the fourth quarter of 2018 increased 2.6 points compared with the prior year quarter. Net catastrophe losses were $4 million, or 0.6 points of the loss ratio, for the fourth quarter of 2018 and nil for the prior year quarter. Favorable net prior period development improved the loss ratio by 3.7 points in the quarter compared with a 5.8 point improvement in the prior year quarter. For the full year, the combined ratio improved 0.5 points.
• Net written premiums for Specialty increased 3% for the fourth quarter of 2018 driven by higher new business and positive renewal premium change partially offset by lower retention. For the full year, net written premiums were consistent with the prior year.