CNA Financial Corporation Smokes Out Q4 Earnings, Hits Record Underwriting Gain and Growth Milestones
The CNA Financial Corporation has concluded its 2024 fourth quarter with outstanding results, showcasing a record underlying underwriting gain, the highest net investment income of the year, and a significant surge in net written premium growth.
Net investment income skyrocketed by 5% for the quarter and 10% for the full year, demonstrating the company's adeptness at navigating market fluctuations. The P&C all-in combined ratio of 93.1% saw an increase of 1.0 point compared to the prior year quarter, mainly due to higher catastrophe losses of $45 million or 1.8 points.
The significant factor behind this increased combined ratio was primarily related to Hurricane Milton. Catastrophe losses were slightly below the company's five-year average of 2.0 points. Notably, despite this surge in catastrophe loss, CNA Financial Corporation achieved a P&C underlying combined ratio of 91.4%, consistent with last year's fourth quarter.
The company demonstrated unwavering commitment to assisting customers affected by tragedies like the California wildfires. This highlights their resilience and compassion in times of crisis. In the same vein, their dedication to delivering excellent results is evident in their performance during Q4.
Record growth was witnessed across multiple metrics for the quarter: gross written premiums excluding captives grew 9%, while net written premiums experienced a 10% surge. This exceptional performance underscores CNA Financial Corporation's ability to adapt and thrive amidst industry changes.
In Commercial, rate change remained steady at 6%, with notable increases in commercial auto rates (17%) and excess casualty rates (11%), each exceeding loss cost trends. Healthcare rates rose by 9%, outperforming the previous quarter and continuing to surpass loss cost trends.
The company's focus on strategic growth is evident through their new business growth of 8%, driven primarily by Commercial and International segments. Retention rates reached a high point, reaching 86% as they maintained their profitable portfolio of accounts.
These remarkable Q4 results solidify CNA Financial Corporation's position in the industry as they achieve a record-low underlying combined ratio of 90.0% for the Commercial segment. This accomplishment not only signifies their resilience but also underscores their unwavering dedication to delivering top-notch performance."
