CNA Financial Corporation
Supplemental Financial Information
September 30, 2021
This report is for informational purposes only and includes consolidated financial statements and financial exhibits that are unaudited. This report should be read in conjunction with documents filed with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K.
Table of Contents
Page | |
Consolidated Results | |
Components of Income (Loss), Per Share Data and Return on Equity | |
Selected Balance Sheet Data and Statements of Cash Flows Data | |
Results of Operations | |
Property & Casualty | 4 |
Specialty | 5 |
Commercial | 6 |
International | 7 |
Life & Group | 8 |
Corporate & Other | 9 |
Investment Information | |
Investment Summary - Consolidated | 10 |
Investment Summary - Property & Casualty and Corporate & Other | 11 |
Investment Summary - Life & Group | 12 |
Investments - Fixed Maturity Securities by Credit Rating | 13 |
Components of Net Investment Income | 14 |
Other | |
Claim & Claim Adjustment Expense Reserve Rollforward | 15 |
Life & Group Policyholder Reserves | 16 |
Definitions and Presentation | 17 |
Statements of Operations
Periods ended September 30 | Three Months | Nine Months | |||||||||||||||
(In millions) | 2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||
Revenues: | |||||||||||||||||
Net earned premiums | $ | 2,059 | $ | 1,953 | 5 | % | $ | 6,056 | $ | 5,672 | 7 % | ||||||
Net investment income | 513 | 517 | (1) | 1,608 | 1,380 | 17 | |||||||||||
Net investment gains (losses) | 22 | 27 | 117 | (120) | |||||||||||||
Non-insurance warranty revenue | 357 | 317 | 1,054 | 926 | |||||||||||||
Other revenues | 8 | 6 | 19 | 19 | |||||||||||||
Total revenues | 2,959 | 2,820 | 5 | 8,854 | 7,877 | 12 | |||||||||||
Claims, Benefits and Expenses: | |||||||||||||||||
Insurance claims and policyholders' benefits | 1,632 | 1,616 | 4,684 | 4,683 | |||||||||||||
Amortization of deferred acquisition costs | 368 | 360 | 1,084 | 1,046 | |||||||||||||
Non-insurance warranty expense | 330 | 293 | 973 | 859 | |||||||||||||
Other operating expenses | 287 | 269 | 874 | 852 | |||||||||||||
Interest | 28 | 32 | 85 | 94 | |||||||||||||
Total claims, benefits and expenses | 2,645 | 2,570 | (3) | 7,700 | 7,534 | (2) | |||||||||||
Income (loss) before income tax | 314 | 250 | 1,154 | 343 | |||||||||||||
Income tax (expense) benefit | (58) | (37) | (218) | (40) | |||||||||||||
Net income (loss) | $ | 256 | $ | 213 | 20 | % | $ | 936 | $ | 303 | N/M % |
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Components of Income (Loss), Per Share Data and Return on Equity
Periods ended September 30 | Three Months | Nine Months | ||||||||||
(In millions, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||
Components of Income (Loss) | ||||||||||||
Core income (loss) | $ | 237 | $ | 193 | $ | 841 | $ | 400 | ||||
Net investment gains (losses) | 19 | 20 | 95 | (97) | ||||||||
Net income (loss) | $ | 256 | $ | 213 | $ | 936 | $ | 303 | ||||
Diluted Earnings (Loss) Per Common Share | ||||||||||||
Core income (loss) | $ | 0.87 | $ | 0.71 | $ | 3.08 | $ | 1.47 | ||||
Net investment gains (losses) | 0.07 | 0.08 | 0.35 | (0.36) | ||||||||
Diluted earnings (loss) per share | $ | 0.94 | $ | 0.79 | $ | 3.43 | $ | 1.11 | ||||
Weighted Average Outstanding Common Stock and Common Stock Equivalents | ||||||||||||
Basic | 271.7 | 271.7 | 271.8 | 271.6 | ||||||||
Diluted | 272.7 | 272.3 | 272.8 | 272.3 | ||||||||
Return on Equity | ||||||||||||
Net income (loss) (1) | 8.1 | % | 7.2 | % | 9.8 | % | 3.3 | % | ||||
Core income (loss) (2) | 7.7 | 6.7 | 9.3 | 4.5 |
- Annualized net income (loss) divided by the average stockholders' equity including accumulated other comprehensive income (loss) (AOCI) for the period. Average equity including AOCI is calculated using a simple average of the beginning and ending balances for the period.
- Annualized core income (loss) divided by the average stockholders' equity excluding AOCI for the period. Average equity excluding AOCI is calculated using a simple average of the beginning and ending balances for the period.
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Selected Balance Sheet Data and Statement of Cash Flows Data
(In millions, except per share data) | September 30, 2021 | December 31, 2020 | |||
Total investments | $ | 50,236 | $ | 50,293 | |
Reinsurance receivables, net of allowance for uncollectible receivables | 5,328 | 4,457 | |||
Total assets | 66,522 | 64,026 | |||
Insurance reserves | 42,607 | 41,143 | |||
Debt | 2,778 | 2,776 | |||
Total liabilities | 53,858 | 51,319 | |||
Accumulated other comprehensive income (loss) (1) | 346 | 803 | |||
Total stockholders' equity | 12,664 | 12,707 | |||
Book value per common share | $ | 46.67 | $ | 46.82 | |
Book value per common share excluding AOCI | $ | 45.39 | $ | 43.86 | |
Outstanding shares of common stock (in millions of shares) | 271.4 | 271.4 | |||
Statutory capital and surplus - Combined Continental Casualty Companies (2) | $ | 11,098 | $ | 10,708 | |
Three Months Ended September 30 | 2021 | 2020 | |||
Net cash flows provided (used) by operating activities | $ | 669 | $ | 758 | |
Net cash flows provided (used) by investing activities | (395) | (882) | |||
Net cash flows provided (used) by financing activities | (104) | (25) | |||
Net cash flows provided (used) by operating, investing and financing activities | $ | 170 | $ | (149) | |
Nine Months Ended September 30 | 2021 | 2020 | |||
Net cash flows provided (used) by operating activities | $ | 1,354 | $ | 1,408 | |
Net cash flows provided (used) by investing activities | (597) | (407) | |||
Net cash flows provided (used) by financing activities | (545) | (801) | |||
Net cash flows provided (used) by operating, investing and financing activities | $ | 212 | $ | 200 | |
- As of September 30, 2021 and December 31, 2020, the net unrealized gains on investments included in AOCI were net of after-tax Shadow Adjustments of $2,481 million and $2,773 million. To the extent that unrealized gains on fixed income securities supporting certain products within the Life & Group segment would result in a premium deficiency if realized, an increase in Insurance reserves are recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (loss) (Shadow Adjustments).
- Statutory capital and surplus as of September 30, 2021 is preliminary.
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Disclaimer
CNA Financial Corporation published this content on 29 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2021 18:36:03 UTC.