CNA Financial Corporation has reported lower first-quarter 2026 earnings as underwriting results weakened across its property and casualty (P&C) book, partially offset by stronger investment income and modest premium growth.
Net income for the quarter fell to $211 million, or $0.78 per share, from $274 million, or $1.00 per share, a year earlier. Core income, which excludes certain investment gains and losses, declined to $225 million, or $0.83 per share, from $281 million, or $1.03 per share. The board declared a quarterly dividend of $0.48 per share, payable June 4, 2026, to shareholders of record on May 18, 2026.
CNA’s P&C operations generated core income of $248 million, down $63 million year-on-year, as weaker underlying underwriting results and higher adverse prior-year development outweighed higher net investment income.
Net written premiums grew 1% to $2.62 billion, while net earned premiums rose 3% to $2.60 billion.
The all-in P&C combined ratio deteriorated to 102.2% from 98.4%. The loss ratio increased to 71.8% from 67.8%, including 3.6 points from catastrophes and 4.1 points from unfavorable prior-period development, versus 3.8 and 2.5 points respectively a year earlier. The underlying loss ratio, excluding catastrophes and prior-year development, worsened to 64.1% from 61.5%.
The underlying combined ratio rose to 94.5% from 92.1%, while the expense ratio improved slightly to 29.9% from 30.2%.
CNA said it took “decisive action” to add prudence to recent-year reserves in excess casualty within commercial and professional E&O within specialty, citing the current liability environment. New business increased 3% to $581 million; retention was 83%. Average rate increase was 2%, with renewal premium change up 3%, including double-digit rate in social inflation–impacted classes and double-digit rate decreases in national accounts property amid strong competition.
Meanwhile, commercial net written premiums fell 1% to $1.48 billion, while net earned premiums increased 2% to $1.41 billion. The segment reported an underwriting loss of $49 million, compared with a $17 million loss in the prior-year period.
The combined ratio worsened to 103.5% from 101.1%. The loss ratio rose to 76.2% from 73.0%, and the underlying loss ratio increased to 65.8% from 62.9%, reflecting higher loss cost trends in excess casualty and workers’ compensation. Catastrophe losses were $93 million, including $9 million of reinstatement premiums, versus $86 million a year earlier, adding 6.4 points to the loss ratio (6.3 points previously). Unfavorable prior-period development, again driven by excess casualty, contributed 4.0 points versus 3.8 points a year earlier.
The expense ratio improved to 26.7% from 27.6%, helped by a lower acquisition ratio.
Total net investment income increased to $610 million from $604 million. Income from fixed income securities and other investments rose to $568 million from $550 million, reflecting a larger invested asset base and higher reinvestment yields, while returns from limited partnerships and common stocks declined to $42 million from $54 million.
Shareholders’ equity stood at $10.9 billion at March 31, 2026, down 7% from year-end 2025, primarily due to dividends and higher net unrealised investment losses, partly offset by net income. Adjusting for dividends, book value per share excluding AOCI increased 1%. Statutory capital and surplus for the Combined Continental Casualty Companies was $11.1 billion, indicating continued capital strength despite earnings volatility.
Travelers, which has a similar tilt towards US commercial lines, reported a first-quarter 2026 combined ratio in the mid-90s, supported by favourable prior-year reserve development and continued rate adequacy in commercial auto and general liability, and still produced an underwriting profit despite elevated convective storm losses. Chubb also reported a sub‑95 combined ratio for its North America commercial business, underpinned by strong pricing in long‑tail casualty and disciplined management of property aggregates, even with pressure from large property and catastrophe claims.
Against that backdrop, CNA’s 102.2% P&C combined ratio and 94.5% underlying combined ratio place it toward the weaker end of the large commercial peer group on current underwriting performance. Several major competitors are still delivering low‑ to mid‑90s underlying combined ratios, helped by earlier and more aggressive rate action in casualty and tighter control of property and catastrophe exposure.
On capital and investments, CNA’s modest improvement in fixed‑income yields and stable statutory capital position are consistent with trends across the US P&C sector, where higher interest rates are boosting investment income even as unrealised losses weigh on book value.
Taken together, the peer comparison suggests CNA is not alone in facing pressure from casualty severity, social inflation and competitive property markets.
However, the scale of reserve strengthening in excess casualty and professional E&O, and the resulting uplift in its underlying loss ratios, mean the company has more ground to make up than some rivals to bring underwriting performance back into the low‑90s range that many investors now expect over the cycle.
