CNA Financial Reports Record Income in 2025: A Resilient P&C Insurer
CNA Financial reported a record net income of $1.28 billion for the full year of 2025, marking a robust performance in the U.S. commercial property and casualty insurance market. The firm increased returns to shareholders by augmenting its dividend by 4% and issuing a special dividend of $2 per share. Despite an industry-wide trend of softened underwriting margins in the fourth quarter, CNA's resilience in risk management shone through.
Fourth Quarter Insights
In the fourth quarter, CNA's net income rose to $302 million, or $1.11 per share, a substantial increase over $21 million, or $0.07 per share, from the same period the previous year. The prior year’s results were impacted by a significant $290 million after-tax pension settlement loss, a non-recurring event affecting financial comparability. Core income for the quarter was $317 million, or $1.16 per share, slightly down from $342 million, or $1.25 per share, in Q4 2024.
The combined ratio for the P&C segments increased to 93.8% from 93.1% the previous year, reflecting heightened margin pressures seen across the sector. Catastrophe losses accounted for 1.5 percentage points of the combined ratio, an improvement from 1.8 points in the prior year, suggesting an impact from underlying underwriting challenges more than catastrophic events.
Premium Growth and Investment Income
During the quarter, CNA's net written premium growth stood at 2%, a rate somewhat lower than the mid-single-digit growth reported by some specialty carriers. This reflects CNA's cautious approach to rate adjustments and careful risk selection as industry pricing dynamics stabilize. Like many large U.S. carriers, CNA benefited from increased net investment income, which offset underwriting pressures, supported by elevated interest rates across financial markets.
Annual Performance and Capital Management
For 2025, CNA's record net income of $1.28 billion, or $4.69 per share, significantly increased from $959 million, or $3.52 per share, in 2024. Core income rose to $1.34 billion, or $4.93 per share, slightly ahead of last year. The P&C segments contributed core income of $1.66 billion for the year, driven by enhancements in current accident-year underwriting and robust investment income. CNA's strategic capital management led to a 10% increase in book value per share, excluding other comprehensive income, reaching $46.99 after dividends.
Shareholder Returns
In terms of shareholder returns, CNA distinguished itself by declaring a quarterly cash dividend of $0.48 per share, a 4% increase, and a $2 per-share special dividend payable in March. This strategic move underscores CNA’s strong balance sheet position, competitive with top U.S. commercial insurers, while navigating the complex landscape of regulatory compliance and underwriting challenges that loom over the industry.