CHICAGO - CNA Financial Corporation (NYSE: CNA), a leading commercial property and casualty insurance firm, has announced a significant leadership transition set for January 1, 2025. The company's current Executive Vice President & Global Head of Underwriting, Doug Worman, is slated to take over as President and CEO. Dino E. Robusto, the incumbent Chairman and CEO, will assume the role of Executive Chairman of the Board.
This planned succession comes after a period of notable achievement for CNA under Robusto's leadership, which has seen the company reach unprecedented profitability and underwriting performance. James S. Tisch, CEO of Loews Corporation (NYSE:L) and a member of CNA's board, expressed gratitude for Robusto's contributions and confidence in Worman's vision for the company's future.
Worman, who joined CNA in 2017, has been credited with strengthening the company's underwriting culture and profitability. His prior roles include CEO of Endurance U.S. Insurance and leadership positions at Alterra Capital Holdings and AIG (NYSE:AIG). His tenure at CNA has been marked by the development of product organizations and business units, as well as the establishment of the company's Global Underwriting Committee.
Robusto will continue to influence the company's strategic direction as Executive Chairman, providing counsel to Worman in achieving CNA's objectives.
CNA, with more than 125 years of experience, is recognized as a prominent insurer in the U.S., Canada, and Europe, offering a wide array of insurance products and services to businesses and professionals.
The information for this article is based on a press release statement from CNA Financial Corporation.
In other recent news, CNA Financial Corporation has reported a strong first quarter for 2024. The company announced a record Q1 core income of $355 million, marking a $30 million increase from the prior year. Their net investment income also rose significantly, reaching $609 million. The property and casualty segment maintained its efficiency, with an underlying combined ratio of 91%, marking the 13th consecutive quarter it stayed below 92%.
In terms of developments, the company's gross written premium ex-captives grew by 8%, and net written premium by 6%. Despite the corporate segment reporting a core loss of $22 million, the company's balance sheet remains robust with stockholders' equity of $12.2 billion and statutory capital and surplus of $10.9 billion. CNA Financial also announced a regular quarterly dividend of $0.44 per share.
Looking to the future, CNA Financial expects to see an increase of 7% in Q2 and 5% for the full year in fixed income and other investment income. The company also plans to invest in technology and talent to further penetrate specialty markets. However, it's worth noting that the company experienced increased severity in auto warranty business claims due to higher labor rates and parts costs.
InvestingPro Insights
As CNA Financial Corporation (NYSE: CNA) prepares for its leadership transition, the company's financial health remains a key consideration for investors. According to InvestingPro data, CNA boasts a market capitalization of $12.25 billion and a solid P/E ratio of 9.83, which is especially attractive when paired with the company's near-term earnings growth. The adjusted P/E ratio, reflecting the last twelve months as of Q1 2024, stands very close at 9.85, underlining the consistency in valuation metrics.
InvestingPro Tips reveal that analysts have revised their earnings estimates upwards for the upcoming period, indicating a positive outlook on the company's financial performance. Moreover, CNA has been recognized for trading at a low P/E ratio relative to near-term earnings growth, suggesting that the stock may be undervalued given its growth prospects. This is particularly relevant as Doug Worman steps into the role of President and CEO, with plans to continue the company's profitability trajectory.
Investors may also find CNA's dividend policy appealing, as the company pays a significant dividend with a yield of 8.35%, and has a history of maintaining dividend payments for 14 consecutive years. The dividend growth over the last twelve months as of Q1 2024 was an impressive 30.56%.
For those looking to delve deeper into CNA's financials and future prospects, InvestingPro offers additional insights and tips. There are currently 6 more InvestingPro Tips available for CNA, which can be accessed by subscribing to the service. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a comprehensive toolkit for informed investment decisions.
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