CNA Financial Q4 net income jumps; increases quarterly dividend

Overview

• U.S. insurance firm's Q4 net income rose significantly due to absence of prior pension loss

• Core income for Q4 decreased yr/yr, reflecting lower underwriting results

• Company increased quarterly dividend by 4% and declared $2.00 special dividend

Outlook

• CNA Financial did not provide specific guidance for future quarters or the full year

Result Drivers

• P&C SEGMENT - Core income slightly decreased due to lower underwriting results, offset by higher net investment income

• PREMIUM GROWTH - P&C segments generated net written premium growth of 2% due to renewal premium change and written rate

• LIFE & GROUP LOSS - Core loss increased due to unfavorable persistency experience

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for CNA Financial Corp is $26.50, about 46.8% below its February 6 closing price of $49.83

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn3LS8ZDa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.