CNA Financial Q3 profit drops, core EPS misses estimates

CNA Financial (CNA) said on Nov. 2 that third-quarter 2026 net income was $196 million, or 72 cents per share, down from $403 million a year earlier. Core income, which excludes net investment gains and losses, was $203 million, or 75 cents per diluted share, missing the $1.23 consensus estimate compiled by Finnhub.

Shares fell 2.0% in regular-session trading as of 9:36 a.m. ET, from a regular-session close of $48.68.

CNA is one of the largest U.S. commercial property and casualty insurance companies, serving businesses and professionals in the U.S., Canada and Europe.

Here's how the company did:

• Core income per diluted share: 75 cents vs. $1.50 a year earlier, against the $1.23 consensus estimate compiled by Finnhub
• Net income per diluted share: 72 cents vs. $1.48 a year earlier
• Net income: $196 million vs. $403 million a year earlier
• Net written premiums: up 3% from a year earlier

Life & Group reserve updates

The Life & Group segment posted a core loss of $171 million, compared with a core loss of $22 million a year earlier.

The company said the loss reflected an unfavorable after-tax impact of $137 million from its annual long-term care reserve assumption updates. The updates were driven mainly by cost of care inflation and morbidity assumption updates, partly offset by favorable premium rate action.

The company said the unfavorable reserve updates are almost entirely offset by a favorable economic impact from recent investment portfolio actions. Under GAAP accounting, those benefits are recognized through net investment income over time rather than immediately in earnings.

Property & Casualty results

Property & Casualty core income was $397 million, down from $456 million a year earlier.

The combined ratio was 97.0%, compared with 92.8% a year earlier, including 2.8 points of catastrophe impact. Catastrophe losses were $78 million, compared with $41 million.

The underlying combined ratio was 94.2%, up from 91.3%. The company said there was no net prior period development in the quarter or in the prior-year quarter.

Net written premiums grew 3%, with renewal premium change of 3% and written rate of 2%.

Chairman and Chief Executive Officer Douglas M. Worman said: "We delivered strong third quarter results with core income of $203 million reflecting disciplined growth, high-quality underwriting results and solid investment income, even with the unfavorable accounting impact from the annual LTC reserve assumption updates."

Capital and dividend

The board declared a regular quarterly cash dividend of 48 cents per share, payable Dec. 3, 2026 to stockholders of record on Nov. 16, 2026.

Book value per share was $37.80 at Sept. 30, compared with $42.93 at Dec. 31, 2025. Book value per share excluding AOCI was $46.11.

Stockholders' equity of $10.2 billion fell 12% from year-end 2025, primarily due to an increase in net unrealized investment losses from higher interest rates and dividends paid, partially offset by net income.