CNA Financial (CNA) Up 4.2% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for CNA Financial (CNA). Shares have added about 4.2% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is CNA Financial due for a pullback? Well, first let's take a quick look at its latest 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 Q3 Earnings Beat Estimates on Solid UnderwritingCNA Financial Corporation reported third-quarter 2025 core earnings of $1.50 per share, which beat the Zacks Consensus Estimate by 20%. The bottom line increased 39% year over year.The quarterly results of CNA reflected higher income from fixed income securities, increased renewal premium change, and higher underwriting income owing to lower catastrophe losses. It was partly offset by escalating expenses.Behind Q3 HeadlinesTotal operating revenues of CNA Financial were $3.4 billion, up 6.3% year over year due to higher premiums, net investment income, and other revenues. The top line missed the Zacks Consensus Estimate by 0.05%.Net written premiums of Property & Casualty Operations increased 3.2% year over year to $2.4 billion, driven by P&C renewal premium change of more than 4% with a written rate of over 3% and exposure change of more than 1%.Net investment income rose 2% year over year to $638 million. The increase was driven by higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates. The Zacks Consensus Estimate and our estimate for net investment were both pegged at $690.5 million.Total claims, benefits and expenses increased 1.4% to $3.3 billion, primarily due to higher insurance claims and policyholders’ benefits, amortization of deferred acquisition costs, other operating expenses and interest expense. Our estimate was also $3.4 billion.Catastrophe losses were $41 million pretax, narrower than a loss of $143 million in the year-ago quarter. Underwriting income surged nearly threefold year over year to $194 million, driven by low catastrophe losses. Our estimate was $83.5 million.The P&C combined ratio improved 440 basis points (bps) year over year to 92.8. Our estimate was 97.2.Segment ResultsSpecialty’s net written premiums increased 1% year over year to $867 million. Our estimate was $909.8 million. The combined ratio deteriorated 30 bps to 93.3. The Zacks Consensus Estimate was pegged at 94.Commercial’s net written premiums increased 2% year over year to $1.2 billion. Our estimate was $1.4 billion. The combined ratio improved 750 bps to 92.7. The Zacks Consensus Estimate was pegged at 99.International’s net written premiums increased 15% year over year to $319 million. Our estimate was $329.2 million. The combined ratio improved 430 bps to 91.8. The Zacks Consensus Estimate was pegged at 98.Life & Group’s net earned premiums were $106 million, down 3.6% year over year. Our estimate was $106.2 million. The core loss was $22 million, wider than a loss of $9 million incurred in the year-ago quarter, primarily due to lower net investment income from limited partnerships.Corporate & Other’s core loss of $25 million was narrower than the loss of $44 million incurred in the year-earlier quarter. Our estimate was $42 million.Financial UpdateThe core return on equity expanded 380 basis points year over year at 13.2%. Book value, excluding AOCI, as of Sept. 30, 2025, was $46.30 per share, up 8% from year-end 2024. As of Sept. 30, 2025, statutory capital and surplus for the Combined Continental Casualty Companies were $11.5 billion, which increased 3.3% from the 2024-end level.Net cash flow provided by operating activities decreased 3.7% to $720 million in the quarter.Dividend UpdateCNA Financial’s board of directors approved a quarterly dividend of 46 cents per share to be paid out on Dec. 4 to shareholders as of Nov. 17.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.The consensus estimate has shifted 11.11% due to these changes.VGM ScoresCurrently, CNA Financial has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise CNA Financial has a Zacks Rank #2 (Buy). We expect an above average 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, Berkshire Hathaway B (BRK.B), has gained 3.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.Berkshire Hathaway B reported revenues of $94.97 billion in the last reported quarter, representing a year-over-year change of +2.1%. EPS of $6.26 for the same period compares with $4.68 a year ago.For the current quarter, Berkshire Hathaway B is expected to post earnings of $4.89 per share, indicating a change of -27.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -31.4% over the last 30 days.Berkshire Hathaway B has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CNA Financial Corporation (CNA): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks