CNA Financial Corporation. (CNA) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

May 2, 2022 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning and welcome to CNA’s discussion of its 2022 First Quarter Financial Results. CNA’s first quarter earnings release, presentation and financial supplement were released this morning and are available via its website wwe.cna.com.

Speaking today will be Dino Robusto, CNA’s Chairman and Chief Executive Officer and Scott Lindquist, CNA’s Chief Financial Officer. Following their prepared remarks we will be opening the line for questions. Today’s call may include forward looking statements and references to non-GAAP financial measures. Any forward looking statements involve risks and uncertainties that may cause actual results to differ materially from the statements made during the call. Information concerning those risks is contained in the earnings release and CNA’s most recent SEC filings. In addition, the forward looking statements speak only as of today, Monday, May 2, 2022. CNA expressly disclaims any obligation to update or revise any forward looking statements made during the call.

Regarding non-GAAP measures reconciliations to the most comparable GAAP measures and other information have been provided in the financial supplement. The call is being recorded on webcast during the next week. The call may be assessed on CNA’s website. If you’re reading a transcript of this call please note that the transcript may not be reviewed for accuracy. Thus it may contain transcription errors that could materially alter the intended meaning of the statements.

With that I will now turn the conference over to CNA’s Chairman and CEO Dino Robusto. Please go ahead sir.

Dino Robusto

Thank you, Cecilia, and good morning all. We started off the year strong with increased underlying PNC profitability, lower catastrophe losses, and good production results. But before we begin with the details, I wanted to acknowledge the unconscionable loss of life and devastation in Ukraine. Our hearts reach out to the displaced and suffering.

Turning back to the quarter. Core income was up 20%, the 316 million despite lower investment income from LPs and common stock. In the first quarter, the all combined ratio was 91.9%, 6.2 points lower in the first quarter of 2021 and our best quarterly all in combined ratio since the third quarter of 2016. Pre-tax catastrophe losses were only 19 million, or 1.0 of the combined ratio. The PNC underlying combined ratio was 91.4%, a 0.5 improvement over the first quarter of 2021.