CNA Financial (CNA) AI Stock Analysis

• Market Cap: $13.12B
• Dividend Yield: 7.81%
• Average Volume (3M): 541.83K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.37
• Revenue Growth: 6.12%
• EPS Growth: -31.43%
• Country: US
• Employees: 6,500
• Sector: Financial
• Sector Strength: 72
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.23
• Shares Outstanding: 270,665,400
• 10 Day Avg. Volume: 435,406
• 30 Day Avg. Volume: 541,831
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 1.72
• Enterprise Value/Ebitda: 12.14
• 1Y Price Target: $54.00
• Price Target Upside: 9.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $54.00 ▲(9.49% Upside)

CNA Financial's strong revenue growth and stable financial position are key strengths, supported by a fair valuation and attractive dividend yield. However, technical indicators suggest overbought conditions, which could lead to short-term volatility. The recent corporate event further strengthens the company's financial strategy.

Positive Factors

Premium Growth

Net premium growth of 9.7% in P&C exceeded expectations, with notable outperformance in all segments.

Underwriting Margins

Favorable P&C underwriting margins contributed to the outperformance compared to projections.

Negative Factors

Core Loss Ratios

The core loss ratios remain high, indicating potential challenges in managing losses effectively.

Reserve Development

The adverse development in the Commercial segment, with a reserve development of $53mn, compares unfavorably to estimates and raises concerns about elevated bodily injury loss cost trends in commercial auto.

Warranty Claims

Higher frequency of warranty claims in the Specialty segment led to adverse development of $10mn, which is worse than expected and linked to vehicle owners keeping their vehicles longer post-pandemic.

CNA Financial Business Overview & Revenue Model

Company Description

CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated standard property and casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products. It also provides property insurance products, such as property, marine, boiler, and machinery coverages; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, and umbrella coverages; specialized loss-sensitive insurance programs and total risk management services; and run-off long term care policies. In addition, the company offers long-tail exposures comprising commercial automobile liability, workers' compensation, general and medical professional liability, other professional and management liability, and assumed reinsurance run-off and products liability; and short-tail exposures, such as property, commercial automobile physical damage, marine, and surety. It markets its products through independent agents, brokers, and general underwriters to small, medium, and large businesses; insurance companies; associations; professionals; and other groups in the marine, oil and gas, construction, manufacturing, life science, property, financial services, healthcare, and technology industries. The company was founded in 1853 and is headquartered in Chicago, Illinois. CNA Financial Corporation operates as a subsidiary of Loews Corporation.

How the Company Makes Money

CNA generates revenue primarily through the underwriting of insurance policies, where it collects premiums from policyholders in exchange for coverage against specified risks. The company’s key revenue streams include premiums from commercial insurance policies, specialty insurance products, and surety bonds. Additionally, CNA earns income from investment activities, as a significant portion of the premiums collected is invested in various financial instruments, generating investment income. The company also benefits from strategic partnerships with brokers and agents, enhancing its market reach and distribution capabilities. Factors contributing to its earnings include effective risk assessment, strong underwriting practices, and favorable market conditions that allow for competitive pricing of insurance products.

CNA Financial Financial Statement Overview

Summary

CNA Financial shows solid performance across its financial statements with strong revenue growth and effective cash management. While profitability has faced some pressure, operational efficiency remains robust. The balance sheet reflects a stable financial position with manageable leverage levels. Overall, the company demonstrates financial health and resilience, with potential areas for improvement in profitability.

Income Statement

The company has demonstrated solid revenue growth, with a 6.73% increase from 2023 to the TTM period. Gross profit margin remains strong at 94.78% for the TTM, indicating efficient cost control. However, the net profit margin has decreased to 6.76% in the TTM, suggesting pressure on profitability. EBIT and EBITDA margins are healthy at 9.09% and 25.33%, respectively, showing good operational efficiency.

Balance Sheet

CNA Financial's balance sheet shows a moderate debt-to-equity ratio of 0.28, indicating manageable leverage levels. The equity ratio is 15.81%, suggesting a stable capital structure. However, the return on equity is relatively low at 9.12%, reflecting moderate returns on shareholder investments.

Cash Flow

The company exhibits strong cash flow performance, with a 12.81% growth in free cash flow from 2023 to the TTM period. The operating cash flow to net income ratio of 2.68 indicates robust cash generation relative to net income. Additionally, the free cash flow to net income ratio is high at 2.58, underscoring effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2023	Dec 2023	Dec 2023
Income Statement
Total Revenue	14.49B	14.00B	13.30B	13.30B	13.30B	13.30B
Gross Profit	9.09B	4.46B	13.13B	13.13B	13.13B	13.13B
EBITDA	1.29B	1.41B	1.72B	1.72B	1.72B	1.72B
Net Income	877.00M	959.00M	1.21B	1.21B	1.21B	1.21B
Balance Sheet
Total Assets	68.94B	66.49B	64.71B	64.71B	64.71B	64.71B
Cash, Cash Equivalents and Short-Term Investments	2.10B	2.56B	2.51B	2.51B	2.51B	2.51B
Total Debt	2.98B	2.97B	3.03B	3.03B	3.03B	3.03B
Total Liabilities	58.27B	55.98B	54.82B	54.82B	54.82B	54.82B
Stockholders Equity	10.66B	10.51B	9.89B	9.89B	9.89B	9.89B
Cash Flow
Free Cash Flow	2.44B	2.48B	2.19B	2.19B	2.19B	2.19B
Operating Cash Flow	2.65B	2.57B	2.29B	2.29B	2.29B	2.29B
Investing Cash Flow	-1.58B	-1.32B	-1.84B	-1.84B	-1.84B	-1.84B
Financing Cash Flow	-1.09B	-1.12B	-577.00M	-577.00M	-577.00M	-577.00M

CNA Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNA, the sentiment is Positive. The current price of 49.32 is above the 20-day moving average (MA) of 46.20, above the 50-day MA of 45.25, and above the 200-day MA of 46.11, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 74.12 is Negative, neither overbought nor oversold. The STOCH value of 94.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNA.

CNA Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THG	81 Outperform	$6.18B	11.37	19.23%	2.04%	4.47%	102.98%
RLI	76 Outperform	$6.23B	19.41	19.49%	3.83%	10.29%	-4.70%
SIGI	75 Outperform	$4.70B	12.65	12.19%	1.95%	12.27%	66.53%
AFG	73 Outperform	$11.07B	14.56	17.17%	6.86%	3.35%	-14.16%
AXS	72 Outperform	$7.54B	9.15	15.07%	1.80%	6.87%	43.53%
CNA	68 Neutral	$13.12B	15.06	8.54%	7.81%	6.12%	-31.43%
Sector *	61 Neutral	C$15.80B	6.79	15.12%	5.95%	22.12%	-7.26%

CNA Financial Corporate Events

CNA Financial Closes $500 Million Notes Offering

On August 12, 2025, CNA Financial successfully closed its offering of $500 million in 5.200% notes due in 2035. This financial move, executed under the company’s shelf registration statement, is expected to impact its financial strategy and stakeholder interests positively.

CNA Financial Enters $500M Underwriting Agreement

On August 5, 2025, CNA Financial entered into an underwriting agreement with Wells Fargo Securities, Citigroup Global Markets, and J.P. Morgan Securities for the offer and sale of $500 million in 5.200% notes due 2035. The sale is expected to close on August 12, 2025, and is part of CNA Financial’s strategy to leverage its effective shelf registration statement, potentially impacting its financial operations and market positioning.

CNA Financial Announces Executive Vice President’s Departure

On July 3, 2025, CNA Financial entered into a General Release and Separation Agreement with Susan A. Stone, Executive Vice President and General Counsel, with her separation effective no later than July 31, 2025. The agreement includes a payment of $2,250,000 in installments and additional health and welfare benefits. In return, Ms. Stone agreed to non-interference and non-solicitation clauses for 12 months, and to cooperate with ongoing litigation and other matters.