CNA Financial reported $299 million in second-quarter income, down 6% from the same period last year.
Core income, which excludes investment gains or losses, rose 3% to $335 million, the Chicago-based insurer reported Monday. That figure was affected by an after-tax charge of $88 million related to unfavorable prior period development, President and CEO Douglas M. Worman said in prepared remarks released with the results.
Property/casualty net written premiums rose 6% to $2.85 billion, and the P/C combined ratio improved to 94.1%, compared with 94.8% in the prior-year period.
In the commercial segment, net written premiums rose 7% to $1.56 billion. Commercial’s combined ratio improved to 94.8%, from 97% in second-quarter 2024.
The quarter’s retention rate was 81%, down from 86% in the first quarter.
New business rose 8% in the second quarter to $645 million, “with positive growth in all three operating segments,” but the company turned down what it viewed as some underpriced commercial auto business, Mr. Worman said.
He said premium growth “was impacted by lower retentions in certain isolated segments within the commercial and specialty portfolios this quarter. In each case, this was reflective of portfolio underwriting actions on specific accounts where our underwriters could not obtain pricing, terms and conditions appropriate to the risk.”
“The market overall is rational,” he said, but “there are certain small pockets within individual lines and geographies where we believe the external loss cost environment is not being appropriately reflected. In those areas, we will not trade bottom-line profit for growth.”
CNA reported $62 million in pre-tax catastrophe losses in the second quarter, down from $82 million in second-quarter 2024.
For the first six months of 2025, net income was down 12.5% to $573 million, and core income declined to $616 million, compared with $681 million in the first half of 2024.
