CNA Financial, an insurance company based in Chicago, has reported higher second-quarter profit due to the rebound of the stock market, which boosted its investment income.
Strong Financial Performance
CNA Financial announced a profit of $283 million, equivalent to $1.04 per share, for the second quarter. This is an increase from $190 million, or 69 cents per share, during the same period last year.
The company's core earnings, which exclude net investment gains or losses, reached $1.13 per share. Despite falling slightly short of analysts' expectations of $1.14 per share, this reflects a solid performance for CNA Financial.
Property & Casualty Operations Unit
CNA Financial's Property & Casualty Operations unit experienced a significant increase in core income. It generated $374 million, up from $317 million during the same period in the previous year. This growth was primarily driven by higher investment income.
Rise in Net Investment Income
A notable highlight is CNA Financial's net investment income, which saw a remarkable 33% increase to $575 million (before taxes).
Chief Executive Dino Robusto expressed optimism about the company's future prospects, citing the strong top-line and bottom-line results in the first half of the year, as well as improved investment returns. He expects this positive momentum to carry over into the remainder of 2023.