Why Is CNA Financial (CNA) Down 2.5% Since Last Earnings Report?

A month has gone by since the last earnings report for CNA Financial (CNA). Shares have lost about 2.5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is CNA Financial due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for CNA Financial Corporation before we dive into how investors and analysts have reacted as of late.

CNA Financial Q4 Earnings & Revenues Miss Estimates, Dividend Raised

CNA Financial reported fourth-quarter 2025 core earnings of $1.16 per share, which missed the Zacks Consensus Estimate by 3.3%. The bottom line decreased 7.2% year over year.

The quarterly results of CNA reflected higher premiums, improved investment income and decreased catastrophe losses, partially offset by lower underlying underwriting income and higher expenses.

Behind Q4 Headlines

Total operating revenues of CNA Financial were $3.4 billion, up 3.8% year over year, due to higher premiums and net investment income. The top line missed the Zacks Consensus Estimate by 1.2%.

Net written premiums of Property & Casualty Operations increased 2% year over year to $2.8 billion. The new business was flat.

Net investment income rose 1.4% year over year to $653 million. The increase was driven by higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates, partially offset by lower common stock returns. Our estimate for net investment was $721.2 million. The Zacks Consensus Estimate was pegged at $721 million.

Total claims, benefits and expenses increased 6% to $3.4 billion, primarily due to higher insurance claims and policyholders’ benefits, amortization of deferred acquisition costs, non-insurance warranty expense, other operating expenses, and interest expense. Our estimate was $3.5 billion.

Catastrophe losses were $40 million, narrower than a loss of $45 million in the year-ago quarter. Underlying underwriting income declined 7% year over year to $207 million.

The combined ratio deteriorated 70 basis points (bps) year over year to 93.8. The Zacks Consensus Estimate was pegged at 85, while our estimate was 85.3.

Segment Results

Specialty’s net written premiums decreased 2% year over year to $914 million. Our estimate was $973.5 million. The combined ratio deteriorated 520 bps to 99. The Zacks Consensus Estimate was pegged at 83.

Commercial’s net written premiums increased 4% year over year to $1.5 billion. Our estimate was $1.5 billion. The combined ratio deteriorated 20 bps to 92.5. The Zacks Consensus Estimate was pegged at 87.

International’s net written premiums increased 1% year over year to $371 million. Our estimate was $359.9 million. The combined ratio improved 950 bps to 85.3. The Zacks Consensus Estimate was pegged at 86.

Life & Group’s net earned premiums were $105 million, down 2.7% year over year. Our estimate was $103.8 million. The core loss was $29 million versus income of $18 million earned in the year-ago quarter. Core loss increased primarily due to unfavorable persistency experience.

Corporate & Other’s core loss of $103 million was wider than a loss of $91 million incurred in the year-earlier quarter.

Financial Update

The core return on equity contracted 90 bps year over year to 10%. Book value per share was $42.93, up 10.5% from year-end 2024. Statutory capital and surplus for the Combined Continental Casualty Companies were $11.6 billion at the end of 2025, up 3.7% from 2024-end. Net cash flow provided by operating activities decreased 18.9% to $570 million in 2025.

Dividend Update

CNA Financial’s board of directors approved a quarterly dividend of 48 cents per share, up 4% from the earlier payout. The dividend will be paid out on March 12 to shareholders of record as of Feb. 23. It also approved a special dividend of $2.00 per share.

Full-Year Update

For 2025, core earnings of CNA Financial were $4.93 per share. The bottom line increased 2% from the 2024 figure. The bottom line missed the Zacks Consensus Estimate by 0.6%. Revenues for the year totaled $13.4 billion, which increased 5.8% from the 2024 level. The top line missed the Zacks Consensus Estimate by 0.2%.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

VGM Scores

At this time, CNA Financial has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, CNA Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

CNA Financial belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Progressive (PGR), has gained 2.2% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Progressive reported revenues of $22.49 billion in the last reported quarter, representing a year-over-year change of +10.6%. EPS of $4.67 for the same period compares with $4.08 a year ago.

For the current quarter, Progressive is expected to post earnings of $4.68 per share, indicating a change of +0.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +7.6% over the last 30 days.

Progressive has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

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