CNA FINANCIAL CORPORATION 2023
Annual Report
CNA Financial Corporation
2023 Financial Highlights
Net Written Premium
$9.9 B
Earnings per Share
$4.43
Shareholders' Equity
$9.9B
Net Income
$1.2B
Dividends Paid
$787M
Book Value per Share
Excluding Accumulated Other Comprehensive Income
10%
Increase
From Year-End 2022, Adjusted for $2.88
Dividends Paid in 2023
2023 Shareholder Letter
Dear Fellow Shareholders,
In 2023, the insurance industry was faced with a complex and shifting landscape driven by the continuing pressures from social and economic inflation, elevated catastrophe losses, and expanded global conflict.
Successfully navigating these conditions required CNA to exhibit a keen insight of the unique market forces in play, maintain a sharp focus on what is truly required to drive profitability, and relentlessly execute to achieve results.
Our 2023 results demonstrate successful execution across our three operating segments of Commercial, Specialty and International. Underlying our execution is our underwriting and claims acumen, as well as our firm commitment to collaborating with our agent and broker partners to offer the best solutions and services for our clients.
I am proud of how our employees continue to deliver exceptional results, with a strong drive to reach higher levels of performance for the benefit of our customers, brokers and agents, fellow employees, and shareholders.
Strong Continued Progress
2023 was characterized by excellent performance and continued shareholder value creation.
We produced a P&C combined ratio of 93.5% and our P&C underlying combined ratio was 90.9% - the third year in a row it has been under 92%. All business segments - Commercial, Specialty and International - produced an underwriting profit. From a production standpoint, we achieved 10% gross written premium growth (excluding Captives) which is
the third consecutive year of double-digit growth, and our net written premium growth was 9%. We wrote $2.080B in new business, which was a record achievement. In the last seven years, we have successfully grown new business at a compound annual growth rate of 11%, maintaining disciplined underwriting and focusing on industries and companies where we have a unique set of customer solutions and deep expertise.
In short, CNA continues to expand on our proven ability to deliver both top-line and bottom-line performance with results that clearly demonstrate the progress of our disciplined approach to capitalizing on our expertise, expanding our underwriting margins, growing our revenue and creating value for our shareholders.
Specialized Expertise
The ability of CNA to confidently maintain strong underwriting performance is underpinned by continually advancing our core strategic priorities: sustaining a deep underwriting culture; attracting, developing and retaining top talent; optimizing agency and broker relationships; further institutionalizing deep specialization; and building on our financial strength.
Specialization is central to our success. We actively pursue specific lines of business and industry segments where we have the proven capability to offer the right solution and generate the needed financial returns.
We provide multi-line, tailored Middle Market solutions across industry segments such as Advanced Manufacturing, Technology, Life Sciences, Real Estate and Private Equity. Our Construction business supports commercial, industrial, institutional and civil contractors with both primary and umbrella solutions. Fortune 500 clients seek us out for end-to- end complex property and casualty solutions for large risk managed businesses. Publicly traded companies, private companies, non-profits and financial institutions rely on our Professional Liability and Cyber products. Aging services organizations, allied facilities and physicians count on our solutions to meet their complex risk needs.
Building on Success
In 2023, we progressed our strategy of business unit specialization, enhancement of our underwriting and product capabilities, and improvements in our operations. This was supported by further investments in technology, advanced analytics and security, which have improved the efficiency and effectiveness of our business. As always, we will continue to evolve CNA to best anticipate and meet the market opportunities as they present themselves.
Talent acquisition and ongoing development remains squarely in focus for CNA. Building on our strong momentum, we continue to attract top talent to join CNA. We continue to add talent at all levels that brings differentiation and depth to our underwriting, field and distribution, claims, and each of our functional areas.
In 2023, our Diversity, Equity and Inclusion efforts emphasized our Company of Allies journey and saw record engagement in our Employee Resource Groups. We furthered our commitment to groups such as Thurgood Marshall College Fund and launched a Risk Control Associate Program to hire U.S. military veterans and help them transition to a career in insurance. For the eighth consecutive year, CNA is proud to have been named an Equality 100 Winner on the Human Rights Campaign Foundation's 2023 Corporate Equality Index. We are also proud to have been named a Best Place to Work for Disability Inclusion within the Disability Equality Index. We will continue to foster an inclusive culture of fairness and respect.
For the eighth consecutive year, CNA is proud to have been named an Equality 100 Winner on the Human Rights
Campaign Foundation's 2023 Corporate Equality Index.
Excellent Financial Strength
Robust capital adequacy and strong credit fundamentals reflect the strength and quality of CNA's balance sheet, reinforced by our financial strength and credit ratings from all four major rating agencies. We maintain a conservative capital structure, a prudent reserving philosophy, a high-quality,well-diversified investment portfolio, and excellent liquidity driven by strong and growing operating cash flows.
In 2023, we continued to grow our underwriting profits to a record level, while achieving excellent investment results. Strong underwriting and fixed income investment cash flows enable us to continue growing our invested asset base and, when coupled with the higher interest rate environment, will be a meaningful benefit for us into 2024.
Thank You
Our employees deserve, and have, the appreciation of senior management for their commitment, attention and performance that is leading to the ongoing success of CNA. I also value the essential partnerships that we have with our agents and brokers who help us serve our mutual customers.
I remain highly optimistic about the opportunities for CNA and look forward to the future that awaits us.
Dino E. Robusto
Chairman and Chief Executive Officer
CNA Financial Corporation, February 20, 2024
Directors
Dino E. Robusto | André Rice1 | James S. Tisch |
Chairman of the Board and | Founder and President | President and Chief Executive Officer |
Chief Executive Officer | Muller & Monroe Asset Management, LLC | Loews Corporation |
CNA Financial Corporation | Kenneth I. Siegel | Jane J. Wang |
Michael A. Bless1 | Senior Vice President | Senior Vice President and |
Retired President and Chief Executive Officer | Loews Corporation | Chief Financial Officer |
Century Aluminum Company | Andrew H. Tisch | Loews Corporation |
Jose O. Montemayor1 | Co-Chairman of the Board | |
Principal | Loews Corporation | |
Black Diamond Capital Partners I, LP | Benjamin J. Tisch | |
Don M. Randel1 | Senior Vice President of | |
Retired President | Corporate Development and Strategy | |
The Andrew W. Mellon Foundation | Loews Corporation |
Management
Dino E. Robusto | Nick Creatura | Jane E. Possell3 |
Chairman of the Board and | President and Chief Executive Officer, | Executive Vice President and |
Chief Executive Officer | Canada | Chief Information Officer |
CNA Financial Corporation | CNA Insurance Companies | CNA Insurance Companies |
Scott R. Lindquist | Daniel P. Franzetti2 | Jalil U. Rehman |
Executive Vice President and | Executive Vice Presiden and | President and Chief Executive Officer, |
Chief Financial Officer | Chief Administrative Officer | UK and Europe |
CNA Financial Corporation | CNA Insurance Companies | CNA Insurance Companies |
Elizabeth A. Aguinaga | Robert J. Hopper | Susan A. Stone |
Executive Vice President and | Executive Vice President and | Executive Vice President and |
Chief Human Resources Officer | Chief Actuary | General Counsel |
CNA Insurance Companies | CNA Insurance Companies | CNA Financial Corporation |
Michael A. Costonis | Mark S. James | Douglas M. Worman |
Global Head of Marketing, | Executive Vice President, Chief Risk and | Executive Vice President and |
Strategy & Innovation | Reinsurance Officer | Global Head of Underwriting |
CNA Insurance Companies | CNA Insurance Companies | CNA Insurance Companies |
Headquarters: | Transfer Agent: |
CNA Financial Corporation | Broadridge Corporate Issuer Solutions, Inc. |
151 North Franklin Street | P.O. Box 1342 |
Chicago, IL 60606 | Brentwood, NY 11717 |
312-822-5000 | shareholder.broadridge.com/cna |
cna.com | Phone U.S. and Canada: 877-456-5752 |
Independent Auditors: | Outside U.S. and Canada: 1-720-414-6894 |
shareholder@broadridge.com | |
Deloitte & Touche LLP | |
111 South Wacker Drive | |
Chicago, IL 60606 |
Shareholder Information:
The common stock of CNA Financial Corporation is listed on the New York Stock Exchange and the Chicago Stock Exchange. Its trading symbol is CNA.
Investor Relations:
Ralitza K. Todorova
Vice President, Investor Relations and Rating Agencies
151 North Franklin Street Chicago, IL 60606 investor.relations@cna.com
1 Member of Audit and Compensation Committees | 2 Assumed CAO role in June 2023 | 3 Assumed expanded role in June 2023
2023 Form 10-K
CNA Financial Corporation
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CNA Financial Corporation published this content on 22 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2024 16:36:10 UTC.
