A month has gone by since the last earnings report for CNA Financial (NYSE: CNA). Shares have added about 3.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CNA Financial due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
CNA Financial Q2 Earnings Miss, Revenues Rise Y/Y
CNA Financial Corporation reported second-quarter 2024 core earnings of $1.19 per share, which missed the Zacks Consensus Estimate by 1.6%. However, the bottom line increased 5.3% year over year. The quarterly results of CNA reflected higher income from fixed income securities, larger invested asset base, improved retention and renewal premium change, partly offset by poor underwriting income and escalating expenses.
Behind Second-Quarter Headlines
Total operating revenues of CNA Financial were $3.1 billion, up 6.7% year over year due to higher premiums, net investment income and other revenues. The top line beat the Zacks Consensus Estimate by 1.3%. Net written premiums of Property & Casualty Operations increased 6% year over year to $2.6 billion, driven by retention of 85% and renewal premium change of 5% with a written rate of 4%.
Net investment income rose 7.4% year over year to $618 million. The increase was driven by higher income from fixed income securities as a result of favorable reinvestment rates and a larger invested asset base, as well as favorable limited partnership and common stock returns. Our estimate for net investment was $601.1 million. The Zacks Consensus Estimate was pegged ...
