Q1 2024 CNA Financial Corp Earnings Call Transcript
Key Points
- CNA Financial Corp reported a core income increase of $30 million in Q1 2024, reaching $355 million, marking the highest first quarter core income on record.
- Net investment income rose by $84 million year-over-year to $609 million, with significant contributions from both the alternatives portfolio and the fixed income portfolio.
- The company achieved a robust top line growth with an 8% increase in gross written premium excluding captives and a 6% growth in net written premium.
- CNA Financial Corp maintained strong retention across all segments, with P&C retention at 85%, consistent with the previous quarter.
- The P&C underlying combined ratio improved to 91%, marking the 13th consecutive quarter it has been below 92%, demonstrating effective cost management and underwriting discipline.
- The all-in combined ratio was adversely affected by pretax catastrophe losses of $88 million, which increased from $52 million in the same quarter last year.
- The underlying loss ratio slightly increased by more than 0.5 point compared to the most recent four-quarter average, mainly due to a mix shift within the Commercial segment.
- Gross written premium for the Specialty segment saw a decline of 1% this quarter, indicating challenges in certain lines of business.
- International operations experienced a decrease in gross written premiums by 6% and net written premiums by 4%, partly due to strategic decisions to reduce exposure in certain areas.
- The company anticipates additional office consolidation charges and expects an expense ratio closer to 30.7%, indicating potential increases in operational costs.
Ladies and gentlemen, good day and welcome to the CNA First Quarter 2024 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference is being recorded.
At this time, I'd like to turn the call over to Ralitza Todorova, VP of Investor Relations & Rating Agencies, for opening remarks and introduction of today's speakers. Please go ahead.
Thank you, Jamie. Good morning, and welcome to CNA's discussion of our first quarter 2024 financial results. Our first quarter earnings press release, presentation and financial supplement were released this morning and are available on the Investor Relations section of our website, www.cna.com.
Speaking today will be Dino Robusto, Chairman and Chief Executive Officer; and Scott Lindquist, Chief Financial Officer. Following their prepared remarks, we will open the line for questions.
Today's call may include forward-looking statements and
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