Q4 2020 Net Income OF $1.42 per share and core income of $1.23 per share...
- Full year 2020 net income of $2.53 per share and core income of $2.70 per share.
- Net income was $387 million versus $273 million in the prior year quarter; core income was a record $335 million versus $265 million in the prior year quarter.
- The P&C combined ratio was 93.5% compared with 95.6% in the prior year quarter, including 0.8 points of catastrophe loss impact compared with 2.9 points in the prior year quarter. No change to COVID-19 catastrophe loss estimate.
- The underlying combined ratio was 92.7% compared with 94.9% in the prior year quarter. The underlying loss ratio was 60.5% compared with 60.9% in the prior year quarter and the expense ratio was 32.0% compared with 33.7% in the prior year quarter.
- P&C segments, excluding third party captives, generated gross written premium growth of 15% and net written premium growth of 12% from strong rate of +12% and new business growth of 17%.
- Net investment income of $555 million pretax includes $114 million of income from LPs and common stock compared with $545 million of pretax net investment income which included $69 million of income from LPs and common stock in the prior year quarter.
Full Year
- Net income was $690 million versus $1 billion in the prior year; core income was $735 million versus $979 million in the prior year.
- The P&C combined ratio was 100.9% compared with 96.7% in the prior year, including 7.7 points of catastrophe loss impact compared with 2.6 points in the prior year.
- The underlying combined ratio was 93.1% compared with 94.8% in the prior year. The underlying loss ratio was 60.2% compared with 61.0% in the prior year and the expense ratio was 32.6% compared with 33.5% in the prior year.
- P&C segments, excluding third party captives, generated gross written premium growth of 9% and net written premium growth of 6% from strong rate of +11% and new business growth of 6%.
- Net investment income of $1,935 million pretax includes $144 million of income from LPs and common stock compared with $2,118 million of pretax net investment income which included $226 million of income from LPs and common stock in the prior year.
Shareholders' Equity
- Book value per share of $46.82; book value per share excluding AOCI of $43.86, a 6% increase from year-end 2019 adjusting for $3.48 of dividends per share.
- Increased quarterly dividend 3% to $0.38 per share; special dividend of $0.75 per share.
CNA Financial Corporation has announced fourth quarter 2020 net income of $387 million, or $1.42 per share, versus $273 million, or $1.00 per share, in the prior year quarter. Core income for the quarter was $335 million, or $1.23 per share, versus $265 million, or $0.97 per share, in the prior year quarter. Net income for the full year 2020 was $690 million, or $2.53 per share, versus $1.0 billion, or $3.67 per share, in the prior year. Core income for the full year 2020 was $735 million, or $2.70 per share, versus $979 million, or $3.59 per share, in the prior year.
Our Property & Casualty segments produced core income of $369 million for the fourth quarter of 2020, an increase of $32 million compared to the prior year quarter. The increase was primarily due to improved current accident year underwriting results.
Our Life & Group and Corporate & Other segments produced core income (loss) for the fourth quarter of 2020 of $26 million and $(60) million, respectively. Corporate & Other results include a $39 million after-tax non-economic charge related to asbestos and environmental pollution.
CNA Financial declared a quarterly dividend of $0.38 per share and a special dividend of $0.75 per share, payable March 11, 2021 to stockholders of record on February 22, 2021.
Further, as previously announced, the Company entered into an agreement with Cavello Bay Reinsurance Limited (Cavello), a subsidiary of Enstar Group Limited, under which Cavello will reinsure a legacy portfolio of excess workers' compensation policies. The transaction closed on February 5, 2021.
