third quarter 2026
Filed Nov 2, 2026CNA Financial Announces Third Quarter 2026 Net Income of $0.72 Per Share and Core Income of $0.75 Per Share
Net income, core income and Property & Casualty underwriting profitability declined from the prior-year quarter, while net written premiums grew and fixed income investment income increased. Life & Group recorded a substantially larger core loss from long-term care reserve assumption updates.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income, three months ended September 30, 2026GAAP | $196M | – | – |
| Core income, three months ended September 30, 2026non-GAAP | $203M | – | – |
| Net income per diluted share, three months ended September 30, 2026GAAP | $0.72 | – | – |
| Core income per diluted share, three months ended September 30, 2026non-GAAP | $0.75 | – | – |
| Net investment losses, three months ended September 30, 2026GAAP | $7M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $728M | – | – |
| Core income, nine months ended September 30, 2026non-GAAP | $752M | – | – |
| Net income per diluted share, nine months ended September 30, 2026GAAP | $2.67 | – | – |
| Core income per diluted share, nine months ended September 30, 2026non-GAAP | $2.77 | – | – |
| Net investment losses, nine months ended September 30, 2026GAAP | $24M | – | – |
| Property & Casualty net written premiums, three months ended September 30, 2026GAAP | $2.51B | – | 3 % |
| Property & Casualty net earned premiums, three months ended September 30, 2026GAAP | $2.73B | – | 2 % |
| Property & Casualty underwriting gain, three months ended September 30, 2026non-GAAP | $82M | – | – |
| Property & Casualty net investment income, three months ended September 30, 2026GAAP | $402M | – | – |
| Property & Casualty core income, three months ended September 30, 2026non-GAAP | $397M | – | – |
| Property & Casualty loss ratio, three months ended September 30, 2026GAAP | 66.9 % | – | – |
| Property & Casualty catastrophe impact, three months ended September 30, 2026GAAP | 2.8 | – | – |
| Property & Casualty underlying loss ratio, three months ended September 30, 2026non-GAAP | 64.1 % | – | up 2.2 points |
| Property & Casualty expense ratio, three months ended September 30, 2026GAAP | 29.7 % | – | – |
| Property & Casualty combined ratio, three months ended September 30, 2026GAAP | 97.0 % | – | increased 4.2 points |
| Property & Casualty underlying combined ratio, three months ended September 30, 2026non-GAAP | 94.2 % | – | increased 2.9 points |
| Property & Casualty net written premiums, nine months ended September 30, 2026GAAP | $8.09B | – | 3 % |
| Property & Casualty net earned premiums, nine months ended September 30, 2026GAAP | $7.99B | – | 3 % |
| Property & Casualty underwriting gain, nine months ended September 30, 2026non-GAAP | $115M | – | – |
| Property & Casualty net investment income, nine months ended September 30, 2026GAAP | $1.24B | – | – |
| Property & Casualty core income, nine months ended September 30, 2026non-GAAP | $1.07B | – | – |
| Property & Casualty loss ratio, nine months ended September 30, 2026GAAP | 68.3 % | – | – |
| Property & Casualty underlying loss ratio, nine months ended September 30, 2026non-GAAP | 64.1 % | – | – |
| Property & Casualty expense ratio, nine months ended September 30, 2026GAAP | 29.9 % | – | – |
| Property & Casualty combined ratio, nine months ended September 30, 2026GAAP | 98.6 % | – | – |
| Property & Casualty underlying combined ratio, nine months ended September 30, 2026non-GAAP | 94.4 % | – | – |
| Catastrophe losses, three months ended September 30, 2026GAAP | $78M | – | – |
| Net investment income, three months ended September 30, 2026GAAP | $635M | – | – |
| Fixed income securities and other net investment income, three months ended September 30, 2026GAAP | $587M | – | – |
| Limited partnership and common stock investments net investment income, three months ended September 30, 2026GAAP | $48M | – | – |
| Net investment income, nine months ended September 30, 2026GAAP | $1.95B | – | – |
| Fixed income securities and other net investment income, nine months ended September 30, 2026GAAP | $1.73B | – | – |
| Limited partnership and common stock investments net investment income, nine months ended September 30, 2026GAAP | $221M | – | – |
| Life & Group net earned premiums, three months ended September 30, 2026GAAP | $101M | – | – |
| Life & Group claims, benefits and expenses, three months ended September 30, 2026GAAP | $547M | – | – |
| Life & Group net investment income, three months ended September 30, 2026GAAP | $223M | – | – |
| Life & Group core loss, three months ended September 30, 2026non-GAAP | $171M | – | – |
| Life & Group net earned premiums, nine months ended September 30, 2026GAAP | $307M | – | – |
| Life & Group claims, benefits and expenses, nine months ended September 30, 2026GAAP | $1.24B | – | – |
| Life & Group net investment income, nine months ended September 30, 2026GAAP | $677M | – | – |
| Life & Group core loss, nine months ended September 30, 2026non-GAAP | $190M | – | – |
| Corporate & Other core loss, three months ended September 30, 2026non-GAAP | $23M | – | – |
| Corporate & Other core loss, nine months ended September 30, 2026non-GAAP | $129M | – | – |
| Book value per share, September 30, 2026GAAP | $37.80 | – | – |
| Book value per share excluding AOCI, September 30, 2026non-GAAP | $46.11 | – | a 5% increase from year-end 2025 adjusting for $3.44 of dividends per share paid |
| Return on equity, three months ended September 30, 2026GAAP | 7.3 % | – | – |
| Core return on equity, three months ended September 30, 2026non-GAAP | 6.5 % | – | – |
| Return on equity, nine months ended September 30, 2026GAAP | 8.9 % | – | – |
| Core return on equity, nine months ended September 30, 2026non-GAAP | 8.0 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SpecialtyThe underlying combined ratio increased 3.4 points as compared with the prior year quarter, with the expense ratio increasing 1.1 points primarily driven by higher acquisition costs. | Net written premiums of $900 million | – | 4 % |
| CommercialThe underlying loss ratio increased 2.4 points, primarily the result of increases in excess casualty and workers' compensation; catastrophe losses were $70 million. | Net written premiums of $1,274 million | – | 2 % |
| InternationalFavorable net prior period development improved the loss ratio by 10.1 points; excluding currency fluctuations, net written premiums grew 6% for the third quarter of 2026. | Net written premiums of $333 million | – | 4 % |
| Life & GroupAnnual long-term care reserve assumption updates unfavorably impacted core loss by $137 million after-tax, primarily driven by unfavorable cost of care inflation and morbidity assumption updates, partially offset by favorable premium rate action outperformance. | Net earned premiums of $101 million | – | – |
| Corporate & OtherCore loss improved $2 million for the third quarter of 2026 as compared with the prior year quarter. | Net investment income of $10 million | – | – |
Capital returns
- Quarterly cash dividend of $0.48 per share, payable December 3, 2026 to stockholders of record on November 16, 2026.
- $3.44 of dividends per share paid, referenced in the book value per share excluding AOCI discussion.
What drove it
- P&C segments generated net written premium growth of 3%, due to renewal premium change of +3% and written rate of +2%.
- P&C underlying combined ratio increased 2.9 points, primarily from a 2.2 point increase in the underlying loss ratio to 64.1%, with increases across each segment.
- Fixed income securities and other net investment income increased to $587 million, reflecting a larger invested asset base and favorable reinvestment rates.
- Lower limited partnership returns reduced limited partnership and common stock investment income to $48 million.
- The Life & Group long-term care reserve assumption updates had an unfavorable after-tax impact of $137 million in 2026.
- The company stated that unfavorable expected cash flows from reserve assumption updates are almost entirely offset by a favorable economic impact from higher future investment cash flows from recent investment portfolio actions, which is not immediately reflected in GAAP earnings.
Concerns
- P&C combined ratio increased to 97.0% from 92.8%, while the underlying combined ratio increased to 94.2% from 91.3%.
- Catastrophe losses increased to $78 million, or 2.8 points of the loss ratio, from $41 million, or 1.5 points.
- Commercial reported unfavorable net prior period development that increased the loss ratio by 2.4 points, compared with no net prior period development impact in the prior-year quarter.
- Life & Group core loss widened to $171 million from $22 million.
- Stockholders’ equity decreased 12% from year-end 2025, primarily due to increased net unrealized investment losses resulting from higher interest rates and dividends paid to stockholders.
What to watch
- The effect of selective capacity deployment and portfolio management on renewal premium change, written rate and net written premium growth.
- Whether loss-ratio increases across Specialty, Commercial and International persist beyond levels management described as consistent with the first half of 2026.
- Catastrophe losses and development-related items, particularly in Commercial and International.
- Recognition over time in net investment income of the anticipated benefits from recent investment portfolio actions.
- Future long-term care reserve assumption updates, including cost of care inflation, morbidity and premium rate action performance.
Balance sheet and cash flow
- Stockholders’ equity of $10.2 billion decreased 12% from year-end 2025, primarily due to an increase in net unrealized investment losses as a result of higher interest rates and dividends paid to stockholders, partially offset by net income.
- As of September 30, 2026, statutory capital and surplus for the Combined Continental Casualty Companies was $11.2 billion.
- Book value per share was $37.80 at September 30, 2026, compared with $42.93 at December 31, 2025.
- Book value per share excluding AOCI was $46.11 at September 30, 2026, compared with $46.99 at December 31, 2025.
Analysis
CNA reported third-quarter net income of $196 million, or $0.72 per diluted share, compared with $403 million, or $1.48 per diluted share, in the prior-year quarter. Core income, a non-GAAP measure, was $203 million, or $0.75 per diluted share, compared with $409 million, or $1.50 per diluted share. For the first nine months, net income was $728 million versus $976 million and core income was $752 million versus $1,025 million. The earnings decline was concentrated in Life & Group and weaker P&C underwriting results.
Property & Casualty net written premiums increased 3% to $2,507 million, with renewal premium change of +3% and written rate of +2%. Net earned premiums increased 2% to $2,731 million. P&C core income declined to $397 million from $456 million and underwriting gain declined to $82 million from $194 million. The combined ratio increased to 97.0% from 92.8%, while the underlying combined ratio increased to 94.2% from 91.3%. The underlying loss ratio rose to 64.1% from 61.9%, and the expense ratio rose to 29.7% from 29.1%.
Catastrophe losses were $78 million, or 2.8 points of the loss ratio, compared with $41 million, or 1.5 points, in the prior-year quarter. Commercial was the principal source of catastrophe losses at $70 million and also had unfavorable net prior period development that increased its loss ratio by 2.4 points. International's reported combined ratio improved to 86.1% from 91.8%, but this reflected favorable net prior period development that improved its loss ratio by 10.1 points; its underlying combined ratio increased to 94.1% from 91.2%. Specialty's underlying combined ratio increased to 96.7% from 93.3% as both the underlying loss ratio and expense ratio increased.
Life & Group produced a core loss of $171 million compared with a $22 million core loss in the prior-year quarter. The company attributed the decline principally to a $137 million after-tax unfavorable impact from annual long-term care reserve assumption updates, driven primarily by unfavorable cost of care inflation and morbidity assumptions, partly offset by favorable premium rate action outperformance. CNA stated that the unfavorable expected cash flows are almost entirely offset by anticipated higher future investment cash flows from recent portfolio actions, but that the benefit is recognized through net investment income over time under GAAP accounting.
Consolidated net investment income was $635 million compared with $638 million. Fixed income securities and other income increased to $587 million from $567 million because of a larger invested asset base and favorable reinvestment rates, while limited partnership and common stock investment income decreased to $48 million from $71 million. Stockholders’ equity was $10.2 billion and had decreased 12% from year-end 2025, primarily due to higher net unrealized investment losses resulting from higher interest rates and dividends paid. CNA declared a regular quarterly cash dividend of $0.48 per share. The release did not provide quantitative forward guidance.
Management, verbatim
We delivered strong third quarter results with core income of $203 million reflecting disciplined growth, high-quality underwriting results and solid investment income, even with the unfavorable accounting impact from the annual LTC reserve assumption updates.
Douglas M. Worman, Chairman & Chief Executive Officer of CNA Financial Corporation
While we continue to see opportunities for growth, there are areas across many portions of the portfolio where we chose to walk away given current market conditions do not support appropriate pricing, terms and conditions.
Douglas M. Worman, Chairman & Chief Executive Officer of CNA Financial Corporation
Not in the filing
stated, not guessed- Forward quantitative guidance for revenue, premiums, underwriting margins, expenses, tax rate, earnings, investment income or capital returns.
- Prior-quarter comparisons for reported earnings, premiums, underwriting metrics, investment income, segment metrics and book value.
- Operating cash flow and free cash flow.
- Cash balance and total debt.
- Share repurchases or repurchase authorization activity.
- Quantitative consolidated revenue, gross margin, operating income and operating expenses, which were not reported as such.
- Specialty, Commercial and International segment core income, underwriting gain, loss ratio, expense ratio, combined ratio and underlying combined ratio are reported in the filing but not individually itemized in key_metrics due to the structured segment presentation using segment revenue and drivers.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.