CNA Financial Q4 Earnings & Revenues Miss Estimates, Dividend Raised

CNA Financial Corporation CNA reported fourth-quarter 2025 core earnings of $1.16 per share, which missed the Zacks Consensus Estimate by 3.3%. The bottom line decreased 7.2% year over year.

The quarterly results of CNA reflected higher premiums, improved investment income and decreased catastrophe losses, partially offset by lower underlying underwriting income and higher expenses.

Behind Q4 Headlines

Total operating revenues of CNA Financial were $3.4 billion, up 3.8% year over year, due to higher premiums and net investment income. The top line missed the Zacks Consensus Estimate by 1.2%.

Net written premiums of Property & Casualty Operations increased 2% year over year to $2.8 billion. The new business was flat.

Net investment income rose 1.4% year over year to $653 million. The increase was driven by higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates, partially offset by lower common stock returns. Our estimate for net investment was $721.2 million. The Zacks Consensus Estimate was pegged at $721 million.

Total claims, benefits and expenses increased 6% to $3.4 billion, primarily due to higher insurance claims and policyholders’ benefits, amortization of deferred acquisition costs, non-insurance warranty expense, other operating expenses, and interest expense. Our estimate was $3.5 billion.

Catastrophe losses were $40 million, narrower than a loss of $45 million in the year-ago quarter. Underlying underwriting income declined 7% year over year to $207 million.  

The combined ratio deteriorated 70 basis points (bps) year over year to 93.8. The Zacks Consensus Estimate was pegged at 85, while our estimate was 85.3.

Segment Results

Specialty’s net written premiums decreased 2% year over year to $914 million. Our estimate was $973.5 million. The combined ratio deteriorated 520 bps to 99. The Zacks Consensus Estimate was pegged at 83.

Commercial’s net written premiums increased 4% year over year to $1.5 billion. Our estimate was $1.5 billion. The combined ratio deteriorated 20 bps to 92.5. The Zacks Consensus Estimate was pegged at 87.

International’s net written premiums increased 1% year over year to $371 million. Our estimate was $359.9 million. The combined ratio improved 950 bps to 85.3. The Zacks Consensus Estimate was pegged at 86.

Life & Group’s net earned premiums were $105 million, down 2.7% year over year. Our estimate was $103.8 million. The core loss was $29 million versus income of $18 million earned in the year-ago quarter. Core loss increased primarily due to unfavorable persistency experience.

Corporate & Other’s core loss of $103 million was wider than a loss of $91 million incurred in the year-earlier quarter.

Financial Update

The core return on equity contracted 90 bps year over year to 10%. Book value per share was $42.93, up 10.5% from year-end 2024. 

Statutory capital and surplus for the Combined Continental Casualty Companies were $11.6 billion at the end of 2025, up 3.7% from 2024-end.

Net cash flow provided by operating activities decreased 18.9% to $570 million in 2025.

Dividend Update

CNA Financial’s board of directors approved a quarterly dividend of 48 cents per share, up 4% from the earlier payout. The dividend will be paid out on March 12 to shareholders of record as of Feb. 23.

It also approved a special dividend of $2.00 per share.

Full-Year Update

For 2025, core earnings of CNA Financial were $4.93 per share. The bottom line increased 2% from the 2024 figure. The bottom line missed the Zacks Consensus Estimate by 0.6%. 

Revenues for the year totaled $13.4 billion, which increased 5.8% from the 2024 level. The top line missed the Zacks Consensus Estimate by 0.2%.

Zacks Rank

CNA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Some Other P&C Insurers

The Travelers Companies, Inc. TRV reported fourth-quarter 2025 core income of $11.13 per share, which beat the Zacks Consensus Estimate by 32% and improved 22% year over year. Travelers’ total revenues increased 3.2% from the year-ago quarter to $12.4 billion, primarily driven by higher premiums, net investment income, and other revenues. The top line beat the Zacks Consensus Estimate by 0.08%.

Net written premiums increased 1% year over year to a record $10.8 billion. Net investment income increased 10.3% year over year to $1 billion. The figure matched the Zacks Consensus Estimate. Travelers witnessed an underwriting gain of $1.7 billion, up 21.7% year over year. The consolidated underlying combined ratio of 82.2 improved 180 bps year over year. 

RLI Corp. RLI reported fourth-quarter 2025 operating earnings of 94 cents per share, which beat the Zacks Consensus Estimate by 23.6%. The bottom line increased 80.8% from the prior-year quarter. Operating revenues for the reported quarter were $449 million, up 3% year over year. The top line missed the Zacks Consensus Estimate by 0.4%.

Gross premiums written decreased 2.1% year over year to $463.2 million. This can be attributed to the poor performance of the Property Segment. Our estimate was $505.2 million. Net investment income increased 9.2% year over year to $42.3 million. The Zacks Consensus Estimate was $42.9 million, while our estimate for the metric was pegged at $44.5 million. The investment portfolio’s total return was 1.5% in the quarter.

W.R. Berkley Corporation’s WRB fourth-quarter 2025 operating income of $1.13 per share missed the Zacks Consensus Estimate by 0.9%. The bottom line remained flat year over year. W.R. Berkley’s net premiums written were $3 billion, up 2.1% year over year. The figure was lower than our estimate of $3.2 billion. Operating revenues came in at $3.7 billion, up 5.9% year over year. However, the top line missed the consensus estimate by 0.9%.

Net investment income grew 6.6% to $338.2 million. Total expenses increased 7.2% to $3.1 billion, driven by higher losses and loss expenses. This was quite close to our estimate of $3.2 billion.

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