CNA Financial, which has operations in Canada, posted record full-year net income of $1.28 billion (all figures in US dollars) in 2025 and stepped up shareholder returns with a 4% dividend increase and a $2 per-share special payout, positioning it among the stronger performers in the US commercial property and casualty insurance space - even as fourth-quarter underwriting margins softened in line with broader industry trends.
The Chicago-based insurer reported fourth-quarter net income of $302 million, or $1.11 per share, compared with $21 million, or $0.07 per share, a year earlier. The prior-year quarter had been distorted by a $290 million after-tax pension settlement loss, a non-recurring item that masked underlying profitability and makes the year-on-year comparison less reflective of operating performance.
Core income for the quarter reached $317 million, or $1.16 per share, down from $342 million, or $1.25 per share, in the fourth quarter of 2024. CNA’s property and casualty segments delivered core income of $449 million, broadly flat year over year, as underwriting results softened but were largely offset by stronger investment income.
The P&C segments’ combined ratio deteriorated to 93.8% from 93.1% in the prior-year quarter. While still within the low-to-mid-90s range reported by several large commercial peers, the uptick reflects the same margin pressure cited across the sector, particularly in casualty and certain specialty lines. Catastrophe losses contributed 1.5 percentage points to the combined ratio, down from 1.8 points a year earlier, meaning the deterioration was driven more by underlying underwriting than by weather volatility.
Net written premium growth of 2% in the quarter lagged the mid-single-digit growth posted by some faster-growing specialty carriers, but reflected CNA’s more measured stance on rate and risk selection as pricing momentum across the industry begins to normalize.
As with most large US P&C insurers, higher net investment income played an increasingly important role in earnings stability. CNA cited investment returns as a key offset to softer underwriting, a dynamic also evident in peers’ results as elevated interest rates continue to support portfolio yields.
For full-year 2025, CNA reported record net income of $1.28 billion, or $4.69 per share, up from $959 million, or $3.52 per share, in 2024. Core income rose to $1.34 billion, or $4.93 per share, modestly ahead of the prior year.
The P&C segments generated core income of $1.66 billion for the year, up $115 million, driven by improved current accident-year underwriting and higher investment income. That puts CNA broadly in line with larger commercial peers that delivered solid, if less spectacular, underwriting gains alongside strong investment tailwinds.
Book value per share excluding accumulated other comprehensive income rose 10% to $46.99 after dividends, a rate of growth comparable with other large US P&C carriers that combined underwriting profitability with disciplined capital management in 2025.
CNA’s capital return policy stood out relative to peers. The company declared a quarterly cash dividend of $0.48 per share, up 4%, alongside a $2 per-share special dividend payable in March. While special dividends remain common across the sector, CNA’s payout underscores balance sheet strength comparable with the strongest commercial insurers, even as underwriting conditions become more challenging.
