Why Is CNA Financial (CNA) Down 5.1% Since Last Earnings Report?

A month has gone by since the last earnings report for CNA Financial (CNA). Shares have lost about 5.1% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is CNA Financial due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for CNA Financial Corporation before we dive into how investors and analysts have reacted as of late.CNA Financial Q1 Earnings Miss Estimates on Weak Underwriting IncomeCNA Financial reported first-quarter 2026 core earnings of 83 cents per share, which missed the Zacks Consensus Estimate by 44.3%. The bottom line decreased 19.4% year over year.The quarterly results of CNA reflected higher claims and expenses, a sharp deterioration in the combined ratio, which pressured underwriting income. These factors were partially offset by modest premium growth, improved investment income and decreased catastrophe losses.Behind Q1 HeadlinesTotal operating revenues of CNA Financial were $3.3 billion, up 2.2% year over year, driven by higher premiums and net investment income. The top line missed the Zacks Consensus Estimate by 0.3%.Net written premiums of Property & Casualty Operations increased 1% year over year to $2.7 billion. The new business grew 3% to $581 million.Net investment income rose 1% year over year to $610 million. The increase was supported by higher fixed income returns, partly offset by weaker performance in limited partnerships and equities. Our estimate for net investment income was $640 million. The Zacks Consensus Estimate was pegged at $640.5 million.Total claims, benefits and expenses increased 4% to $3.4 billion, primarily due to higher insurance claims and policyholders’ benefits, amortization of deferred acquisition costs, other operating expenses and interest expenses. Our estimate was $3.2 billion.Catastrophe losses were $88 million, narrower than the loss of $96 million in the year-ago quarter. Underlying underwriting income declined 28% year over year to $144 million.  The combined ratio deteriorated 380 basis points (bps) year over year to 102.2. The Zacks Consensus Estimate was pegged at 92.5, while our estimate was 92.5.Q1 Segment ResultsSpecialty’s net written premiums decreased 1% year over year to $834 million. Our estimate was $875.5 million. The combined ratio deteriorated 760 bps to 102.7. The Zacks Consensus Estimate was pegged at 90.3.Commercial’s net written premiums decreased 1% year over year to $1.5 billion. Our estimate was $1.5 billion. The combined ratio deteriorated 240 bps to 103.5. The Zacks Consensus Estimate was pegged at 94.2.International’s net written premiums increased 16% year over year to $308 million. Our estimate was $254.4 million. The combined ratio deteriorated 50 bps to 95.9. The Zacks Consensus Estimate was pegged at 91.4.Life & Group’s net earned premiums were $103 million, down 2.8% year over year. Our estimate was $101.8 million. The core loss was $9 million versus income of $6 million earned in the year-ago quarter. Core loss increased primarily due to unfavorable persistency experience.Corporate & Others’ core loss of $17 million was narrower than the loss of $36 million incurred in the year-earlier quarter.CNA’s Financial UpdateThe core return on equity contracted 200 bps year over year to 7.2%. Book value per share was $40.13, down 6.5% from the year-end 2025 level.Statutory capital and surplus for the Combined Continental Casualty Companies were $11.1 billion, down 6.5% from the 2025-end level.Net cash flow provided by operating activities decreased 38.4% to $393 million year over year.CNA’s Dividend UpdateCNA Financial’s board of directors approved a quarterly dividend of 48 cents per share. The dividend will be paid out on June 4 to its shareholders of record as of May 18, 2026.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.The consensus estimate has shifted -11.77% due to these changes.VGM ScoresAt this time, CNA Financial has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock has a grade 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 D. 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. It's no surprise CNA Financial has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerCNA Financial is part of the Zacks Insurance - Property and Casualty industry. Over the past month, RLI Corp. (RLI), a stock from the same industry, has gained 1.7%. The company reported its results for the quarter ended March 2026 more than a month ago.RLI Corp. reported revenues of $453.71 million in the last reported quarter, representing a year-over-year change of +4.3%. EPS of $0.83 for the same period compares with $0.92 a year ago.RLI Corp. is expected to post earnings of $0.70 per share for the current quarter, representing a year-over-year change of -16.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.7%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for RLI Corp.. Also, the stock has a VGM Score of C.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks