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CNA · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is CNA Financial Corporation (CNA) stock moving?
CNA reported weak Q3 2026 results on Nov 2. Core income was $203M versus $409M a year earlier, and adjusted EPS of $0.75 missed the $1.21 estimate. The main driver was a $137M after-tax long-term care reserve charge from the annual assumption review. The P&C combined ratio worsened to 97.0% from 92.8%, with catastrophe losses of $78M versus $41M and an underlying loss ratio up 2.2 points. Growth was modest: net written premiums rose 3% and rate improved to +2% from flat, but national accounts property premium fell 12% as the company walked away from underpriced business. Positives include investment income of $635M, operating cash flow of $654M, a $0.48 quarterly dividend, and management's claim that investment portfolio actions will offset the LTC charge economically, though this benefit is not yet visible under GAAP. Book value per share ex-AOCI was reported at $46.11 versus $46.99 at end-2025, while management cited 5% year-to-date growth including dividends; the sources do not reconcile these figures. Price action was muted relative to the miss. The stock fell 1.6% on Nov 2 to $47.92 on roughly 730K shares (about double the typical volume) after an intraday low of $45.19. It then traded in a $47.1–$48.3 range and closed at $48.16 on Nov 10 on 427K shares, still below the $48–$49.7 range seen in late October.
News behind the analysis
- CNA Financial Corporation Announces Third Quarter 2026 Financial ResultsNet income was $196M and core income $203M, including a $137M after-tax long-term care reserve charge. The company also declared a $0.48 quarterly dividend.
- CNA Financial Q3 Adj. EPS $0.75 Misses $1.21 Estimate, Sales $3.821B Vs. 3.817B YoYAdjusted EPS of $0.75 fell well short of the $1.21 consensus estimate, while sales were roughly flat year over year at $3.821B.
- Loews Q3 Results: CNA Weakness, Hotel Growth and Pipeline HeadwindsParent Loews reported Q3 EPS of $1.50 versus $2.43 a year earlier, with a $125M CNA reserve charge weighing on results.
- CNA Q3 Core Income $203M vs $409M Y/Y, Hit By $137M Long-Term Care Reserve ChargeCore income more than halved from $409M a year earlier, driven by the long-term care reserve assumption review. Management says investment portfolio actions should offset the charge economically, though not yet under GAAP.
- CNA Q3 P&C Combined Ratio 97.0% vs 92.8% Y/Y; Cat Losses $78M vs $41MThe property and casualty combined ratio deteriorated by 4.2 points year over year, with catastrophe losses nearly doubling to $78M.
- CNA Q3 P&C Net Written Premiums Up 3% Y/Y; Renewal Premium Change +3%, Rate +2%Net written premiums grew 3% and rate improved to +2% from flat last quarter, though national accounts property gross written premium fell 12%.
- CNA Declares Regular Quarterly Dividend Of $0.48/ShareThe board declared a regular quarterly cash dividend of $0.48 per share.
- CNA Q3 Book Value/Share Ex-AOCI $46.11 vs $46.99 At End-2025Book value per share excluding AOCI was $46.11, below $46.99 at end-2025, though management cited 5% year-to-date growth including dividends.
About CNA Financial Corporation
CNA Financial is a Chicago-based commercial property and casualty insurer that sells insurance to businesses through its Specialty, Commercial and International units. Loews Corporation owns about 90% of it, and it also carries a long-term care insurance book it no longer sells, which it is winding down over time.
How it makes money
Most of its revenue comes from premiums on business insurance, such as professional liability, management liability, workers' compensation, commercial property and casualty, and surety. It also earns substantial investment income on its mostly fixed-income portfolio, roughly $700 million a quarter as of mid-2026. Its separate Life & Group segment is shrinking: it holds the legacy long-term care policies, which bring in premiums but expose the company to reserve charges.
What usually moves CNA
- Commercial insurance pricing and underwriting margins (combined ratio)
- Catastrophe losses
- Interest rates and investment income
- Long-term care and legacy mass tort reserve charges
- Dividend policy influenced by majority owner Loews