Track market-moving stories before they get noisy

Key Takeaways CNA Financial's P&C net written premiums rose 4% despite just a 2% renewal premium change. CNA Financial's new business grew 11% to a record $718 million, while retention remained 83%. CNA Financial's second-quarter net investment income rose to $701 million, supporting earnings growth. CNA Financial Corporation (CNA - Free Report) can potentially sustain growth even as insurance pricing softens, but the growth mix is likely to shift from rate-driven expansion toward new business, retention, specialization and disciplined underwriting.

In the second quarter of 2026, CNA’s P&C net written premiums increased 4% year over year, despite a renewal premium change of only 2% and flat renewal rate increases. Importantly, new business grew 11% to a record $718 million, while retention remained strong at 83%. This indicates that CNA is increasingly generating premium growth through customer acquisition and portfolio management rather than relying solely on higher renewal rates.

CNA’s Specialty and Commercial businesses provide additional avenues for growth. Specialty NWP increased 5% in the second quarter, while Commercial NWP also rose 5%. Management said it continues to identify opportunities to write accounts at appropriate prices, terms and conditions while pulling back from areas where risk-adjusted returns are less attractive. This selective approach could help CNA defend underwriting profitability as competition increases and pricing moderates.

However, investors will need to monitor whether CNA can maintain premium growth without sacrificing margins. CNA’s second-quarter P&C underlying combined ratio deteriorated to 94.2% from 91.7%, while the underlying loss ratio increased to 64.1%. The pressure was particularly evident in Commercial, where the underlying combined ratio rose to 92.8% from 90.6%.

CNA's growth story is becoming less dependent on pricing and more reliant on 11% new-business growth, strong retention, specialty-market opportunities and disciplined risk selection. Higher investment income also provides some earnings support, with second-quarter net investment income rising to $701 million.

What About Other Players?    The Travelers Companies, Inc. (TRV - Free Report) faces the challenge of softer insurance pricing, particularly in its Business Insurance operations, where moderating renewal rates could reduce the contribution of pricing to premium growth. In the second quarter of 2026, Business Insurance net written premiums increased 5%, excluding the impact of the Canadian divestiture, while renewal premium change was 4.8%. This means Travelers increasingly needs to generate growth through new business, retention, and exposure growth rather than relying on higher renewal prices. At the same time, Travelers must maintain underwriting discipline, as slower pricing growth can make it harder to absorb claims inflation and other loss-cost pressures.

Chubb Limited (CB - Free Report) is also facing softer insurance pricing, particularly in commercial property, but the impact is uneven across its portfolio. In the second quarter of 2026, Chubb said soft underwriting conditions persisted in large-account and E&S property, while softer conditions were also spreading to certain casualty and financial-lines businesses. This pressured North America Commercial P&C NWP, which declined 2.3% year over year, although NWP excluding large-account and E&S property increased 4.1%. Chubb is responding by maintaining underwriting discipline rather than pursuing volume at inadequate prices. Management noted that it would not knowingly underwrite business at a loss. Growth is increasingly coming from areas with better opportunities, including Middle Market and Small Commercial, which grew 8.9%, as well as international markets, where Overseas General NWP increased 10.2%.

CNA’s Price PerformanceShares of CNA have lost 2.7% in the past year compared with the industry.

Image Source: Zacks Investment Research

CNA’s UndervaluationThe stock is undervalued compared with its industry. It is currently trading at a price-to-book value multiple of 1.09, lower than the industry average of 1.39. It carries a Value Score of B.

Image Source: Zacks Investment Research

Estimate Movement for CNAThe Zacks Consensus Estimate for CNA’s third-quarter 2026 EPS moved down 1.6% in the past 60 days. The same for full-year 2026 EPS has moved up 2.4% in the past 60 days.

Image Source: Zacks Investment Research

It has been about a month since the last earnings report for CNA Financial (CNA - Free Report) . Shares have lost about 8.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is CNA Financial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

CNA Q2 Earnings Beat on Improved Investment Income, Premium Growth

CNA Financial Corporation reported second-quarter 2026 core earnings of $1.19 per share, which beat the Zacks Consensus Estimate of $1.04 by 14.4%. The bottom line decreased 3.3% year over year. Revenues rose 3% year over year to $3.46 billion and surpassed the consensus estimate of $3.34 billion by 3.6%. Higher investment income and premium growth supported the top line, while the Property & Casualty combined ratio deteriorated.

CNA’s Premium Growth Supports ResultsProperty & Casualty net written premiums increased 4% year over year to $2.97 billion. Net earned premiums rose 3% to $2.66 billion, aided by 11% new business growth to a record $718 million and a 2% renewal premium change.
Retention remained 83%, while the rate change was flat. Management noted that rate increases in casualty lines affected by social inflation and in Specialty offset property declines, workers’ compensation and International.

CNA Financial’s Underwriting Margin NarrowsP&C underwriting gain fell 39% year over year to $92 million. The combined ratio worsened 240 basis points to 96.5%, reflecting a 250-basis-point increase in the loss ratio to 66.4%.

The underlying combined ratio deteriorated 250 basis points to 94.2%. The underlying loss ratio increased 260 basis points to 64.1%, while the expense ratio improved 10 basis points to 29.7%. Catastrophe losses were $60 million, down from $62 million a year earlier.

CNA’s Specialty and Commercial TrendsSpecialty net written premiums grew 5% year over year to $937 million, while net earned premiums increased 2% to $878 million. Our estimate for net written premiums was $875.8 million. Its combined ratio deteriorated 290 basis points to 96.5%, as the underlying loss ratio rose across various lines.

Commercial net written premiums advanced 5% to $1.64 billion, and net earned premiums rose 3% to $1.44 billion. Our estimate for net written premiums was $1.57 billion. The combined ratio deteriorated 170 basis points to 96.5%. Higher losses in excess casualty and workers’ compensation were partly offset by a 60-basis-point improvement in the expense ratio.

CNA Financial’s International Results WeakenInternational net written premiums declined 2% year over year to $385 million, though net earned premiums increased 4% to $337 million. Excluding currency fluctuations, net written premiums fell 3%. Our estimate for net written premiums was $352.6 million.

The segment’s combined ratio deteriorated 410 basis points to 96.9%. The expense ratio increased 200 basis points due to investments in talent and technology and higher acquisition costs, while catastrophe losses rose to $7 million from $5 million.

CNA’s Investment Income Provides SupportNet investment income increased 6% year over year to $701 million. The increase was driven by higher returns on limited partnerships and common stock, as well as higher income from fixed-income securities, resulting from a larger invested asset base and favorable reinvestment rates. Our estimate for net investment income was $705.2 million. The Zacks Consensus Estimate was pegged at $705 million.

Limited partnership and common stock income rose to $131 million from $100 million. Hedge funds and common stocks generated strong returns, while private equity remained a positive contributor. P&C core income nevertheless declined 5% to $426 million as lower underwriting results outweighed stronger investment income.

CNA Financial’s Costs and Other SegmentsTotal claims, benefits and expenses increased 3% year over year to $3.42 billion. Insurance claims and policyholders’ benefits rose to $2.17 billion from $2.09 billion, while amortization of deferred acquisition costs increased to $481 million from $469 million. Our estimate was $3.34 billion. Life & Group posted a core loss of $10 million versus core income of $1 million a year earlier, reflecting lower investment income. Net earned premiums in Life & Group were $103 million, down 2.8% year over year. Our estimate was $102.7 million. Corporate & Other recorded a core loss of $92 million, narrower than $114 million, including a $77 million after-tax legacy mass tort charge.

CNA’s Capital Position and DividendNet income increased 7% year over year to $321 million, or $1.18 per share. Core return on equity declined 50 basis points to 10.5%. Book value per share was $41.34 as of June 30, 2026, declining 3.7% from 2025 end. Book value excluding accumulated other comprehensive income was $45.83, up 4% from year-end after adjusting for $2.96 per share of dividends paid. As of June 30, 2026, statutory capital and surplus stood at $11.2 billion. The board declared a quarterly dividend of 48 cents per share, payable Sept. 3, 2026, to shareholders of record as of Aug. 17.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.

VGM ScoresCurrently, CNA Financial has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, CNA Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerCNA Financial belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, RLI Corp. (RLI - Free Report) , has gained 2.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

RLI Corp. reported revenues of $463.14 million in the last reported quarter, representing a year-over-year change of +4.9%. EPS of $0.83 for the same period compares with $0.84 a year ago.

For the current quarter, RLI Corp. is expected to post earnings of $0.54 per share, indicating a change of -34.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.9% over the last 30 days.

RLI Corp. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.