CNA Financial Corporation has reported a massive decrease in its quarter-to-quarter net income, in addition to an almost $300 million after-tax loss for the full year in its latest financial results.
The group reported net income of $21 million, or $0.07 per share, for the fourth quarter of 2024, compared to $367 million, or $1.35 per share, in the prior-year quarter.
CNA attributed the decrease to a $290 million after-tax loss from a previously announced pension settlement transaction.
Besides the pension transaction, the company also reported net investment losses of $31 million for the quarter, compared to net investment gains of $5 million in the same period last year.
Core income for the fourth quarter was $342 million, or $1.25 per share, also a bit down compared to $362 million, or $1.33 per share, in the prior-year quarter.
For the full year 2024, CNA reported net income of $959 million, including a $293 million after-tax loss related to pension settlement transactions. This compares to net income of $1.21 billion in 2023.
CNA previously said that it expected a pretax net catastrophe losses of $143 million for the third quarter of 2024, with most of the losses attributed to losses from four major events, including $55 million from Hurricane Helene.
There is some good news for the company, though, as it reported record core income of $1.32 billion for the year, up from $1.28 billion in the prior year.
CEO and president Douglas M. Worman (pictured above) also touted the performance, noting that both AM Best and Moody’s revised their respective outlooks on CNA’s financial strength and debt ratings from stable to positive.
CNA’s property and casualty (P&C) segment reported core income of $451 million, up from $434 million in the fourth quarter of 2023. The increase was driven by higher investment income and higher underlying underwriting income, partially offset by increased catastrophe losses.
The life and group segment reported a core loss of $18 million for the quarter, compared to core income of $4 million in the prior year. The corporate and other segment posted a core loss of $91 million, widening from a $76 million loss in the fourth quarter of 2023.
Net investment income rose 5% year over year to $644 million on a pretax basis. Fixed income securities and other investments contributed $550 million, up by $17 million from the prior-year quarter, while income from limited partnerships and common stock increased by $16 million to $94 million.
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