CNA Financial Corporation (CNA) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

February 6, 2023 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 Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference is being recorded.

And at this time, I'd like to turn the floor over to Ralitza Todorova, AVP, Investor Relations for remarks and introduction of today's speakers. Please go ahead.

Ralitza Todorova

Thank you, Jamie. Good morning and welcome to CNA's discussion of our fourth quarter and full year 2022 financial results. Our fourth quarter earnings press release, presentation and financial supplement were released this morning and are available on the Investor Relations section of our website, www.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, February 6, 2023. CNA expressly disclaims any obligation to update or revise any forward-looking statements made during this 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 with the SEC.

This call is being recorded and webcast. A replay of the call may be accessed on our website. If you are reading a transcript of the 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. CNA produced strong results in the fourth quarter, capping off a great year of underwriting performance. I'll start off by drilling down on the fourth quarter and then provide some detail on our full year performance.

Core income increased by $9 million in the fourth quarter to $274 million. Our P&C operations produced core income of $342 million down only slightly compared to last year, even with cat losses nearly twice as large in the fourth quarter of this year compared to last year and investment income was down due to lower returns on our alternatives portfolio. We were able to largely offset that with higher underlying underwriting gain and slightly more favorable prior period development.