CNA Financial Corporation reported net income of US$299 million for the second quarter of 2025, down from US$317 million in the same quarter last year.
Core income rose 3% to US$335 million from US$326 million in the second quarter of 2024.
Net investment losses totalled US$36 million for the quarter, compared to US$9 million in the prior-year period. Pretax net investment income increased 7% to US$662 million, supported by gains of US$22 million each in both fixed income and other investments, which rose to US$562 million, and in limited partnerships and common stock, which rose to US$100 million.
The second-quarter results follow a mixed performance in Q1 2025, when CNA reported net income of US$274 million down from US$338 million in the prior-year period. Core income in that quarter was US$281 million, or US$1.03 per share.
The Q1 P&C combined ratio rose to 98.4%, reflecting elevated catastrophe losses and reserve strengthening, though the underlying combined ratio was 92.1%.
CNA also entered 2025 under new leadership, with Doug Worman (pictured above) taking over as chief executive officer. He succeeded Dino Robusto, who moved into the role of executive chairman.
“We are proud of our results through the first half of 2025 as growth is balanced and core underwriting remains strong. We are well positioned and confident in our abilities to execute on the many opportunities to grow profitably for the remainder of the year," Worman said.
The company’s property & casualty (P&C) segments generated core income of US$448 million for the second quarter, up from US$380 million in the prior-year period. CNA attributed the increase to higher net investment income and improved current accident year underwriting performance.
Gross written premiums in the P&C segments, excluding third-party captives, grew 5%, while net written premiums increased 6%. The growth reflected a renewal premium change of +5%, which included a +3% written rate and a +1% exposure change. New business rose by 8%.
The P&C combined ratio was 94.1%, compared with 94.8% in the second quarter of 2024. The quarter included 2.4 points of catastrophe loss impact, down from 3.5 points in the same period last year. Catastrophe losses amounted to US$62 million pretax, compared to US$82 million in the prior year.
The underlying combined ratio for P&C was 91.7%, slightly above the 91.6% reported a year ago. The underlying loss ratio was 61.5%, and the expense ratio stood at 29.8%.
The life & group segment reported core income of US$1 million, compared to a core loss of US$1 million in the prior-year quarter.
The corporate & other segment posted a core loss of US$114 million, wider than the US$53 million loss in the same period last year. The current quarter includes an US$88 million after-tax charge related to unfavourable prior-period development tied to legacy mass tort exposures, compared with a US$28 million after-tax charge in the second quarter of 2024.
CNA’s book value per share at quarter-end was US$39.39. Book value per share excluding accumulated other comprehensive income (AOCI) was US$45.25, a 4% increase from year-end 2024 when adjusting for US$2.92 in dividends per share paid.
The company’s board of directors declared a quarterly cash dividend of US$0.46 per share, payable Sept. 4, 2025, to shareholders of record as of Aug. 18, 2025.
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