CNA Financial Corporation's (CNA) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

August 1, 2022 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, good day, and welcome to the CNA 2022 Second Quarter Earnings Conference Call. [Operator Instructions]. As a reminder, today's conference is being recorded.

I would like to turn the call over to Ralitza Todorova, AVP, Investor Relations for opening remarks and introduction of today's speakers. Please go ahead.

Ralitza Todorova

Thank you, Elaine. Good morning, and welcome to CNA's discussion of our second quarter 2022 financial results. Our second quarter earnings press release, presentation and financial supplement were released this morning and are available on the Investor Relations section of our website, wwe.cna.com.

Speaking today will be Dino Robusto, Chairman and Chief Executive Officer; and Scott Lindquist, Chief Financial Officer. Following their prepared remarks, we will open 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 press release and in CNA's most recent SEC filings.

In addition, the forward-looking statements speak only as of today, Monday, August 1, 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 our earnings press release, financial supplement and other filings made with the SEC. This call is being recorded and webcast. A replay of the call may be accessed on our 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 intent or meaning of the statements.

With that, I will turn the call over to our Chairman and CEO, Dino Robusto.

Dino Robusto

Thank you, Ralitza, and good morning all.

We are very pleased with the second quarter results, as we had excellent production performance including 17% gross written premium ex-captives growth and a 64% increase in underwriting gain. Our core income declined by $96 million driven by limited partnerships and common equity returns, which declined by $171 million, while income from our fixed income portfolio was up $16 million as we turn the corner in the second quarter with fixed income yield now increasing. Scott will provide more detail on investments.