CNA Financial Announces Q4 2020 Net Income Of $1.42 Per Share And Core Income Of $1.23 Per Share; Full Year 2020 Net Income Of $2.53 Per Share And Core Income Of $2.70 Per Share

CHICAGO, Feb. 8, 2021

Fourth Quarter

• Net income was $387 million versus $273 million in the prior year quarter; core income was a record $335 million versus $265 million in the prior year quarter.
• The P&C combined ratio was 93.5% compared with 95.6% in the prior year quarter, including 0.8 points of catastrophe loss impact compared with 2.9 points in the prior year quarter.  No change to COVID-19 catastrophe loss estimate.
• The underlying combined ratio was 92.7% compared with 94.9% in the prior year quarter.  The underlying loss ratio was 60.5% compared with 60.9% in the prior year quarter and the expense ratio was 32.0% compared with 33.7% in the prior year quarter.
• P&C segments, excluding third party captives, generated gross written premium growth of 15% and net written premium growth of 12% from strong rate of +12% and new business growth of 17%.
• Net investment income of $555 million pretax includes $114 million of income from LPs and common stock compared with $545 million of pretax net investment income which included $69 million of income from LPs and common stock in the prior year quarter.

Full Year

• Net income was $690 million versus $1 billion in the prior year; core income was $735 million versus $979 million in the prior year.
• The P&C combined ratio was 100.9% compared with 96.7% in the prior year, including 7.7 points of catastrophe loss impact compared with 2.6 points in the prior year.
• The underlying combined ratio was 93.1% compared with 94.8% in the prior year.  The underlying loss ratio was 60.2% compared with 61.0% in the prior year and the expense ratio was 32.6% compared with 33.5% in the prior year.
• P&C segments, excluding third party captives, generated gross written premium growth of 9% and net written premium growth of 6% from strong rate of +11% and new business growth of 6%.
• Net investment income of $1,935 million pretax includes $144 million of income from LPs and common stock compared with $2,118 million of pretax net investment income which included $226 million of income from LPs and common stock in the prior year.

Shareholders' Equity

• Book value per share of $46.82; book value per share excluding AOCI of $43.86, a 6% increase from year-end 2019 adjusting for $3.48 of dividends per share.
• Increased quarterly dividend 3% to $0.38 per share; special dividend of $0.75 per share.

CNA Financial Corporation (NYSE: CNA) today announced fourth quarter 2020 net income of $387 million, or $1.42 per share, versus $273 million, or $1.00 per share, in the prior year quarter.  Core income for the quarter was $335 million, or $1.23 per share, versus $265 million, or $0.97 per share, in the prior year quarter.  Net income for the full year 2020 was $690 million, or $2.53 per share, versus $1.0 billion, or $3.67 per share, in the prior year.  Core income for the full year 2020 was $735 million, or $2.70 per share, versus $979 million, or $3.59 per share, in the prior year.

Our Property & Casualty segments produced core income of $369 million for the fourth quarter of 2020, an increase of $32 million compared to the prior year quarter.  The increase was primarily due to improved current accident year underwriting results.

Our Life & Group and Corporate & Other segments produced core income (loss) for the fourth quarter of 2020 of $26 million and $(60) million, respectively.  Corporate & Other results include a $39 million after-tax non-economic charge related to asbestos and environmental pollution.