Updated 4/22/25
CNA Financial Corporation (CNA) is a century-old commercial property and casualty insurer with a consistent dividend history and a disciplined approach to underwriting. Backed by Loews Corporation, it operates with a focus on stability, generating strong free cash flow and maintaining a conservative balance sheet. The stock currently offers a forward dividend yield of 3.94% with a 50% payout ratio, supported by over $2.5 billion in annual operating cash flow.
Recent leadership changes have brought Doug Worman into the CEO role, signaling continued emphasis on operational strength and strategic discipline. With a solid capital position, manageable debt levels, and a steady combined ratio below 92%, CNA remains positioned to deliver reliable returns. Analysts maintain a consensus price target of $50.50, reflecting moderate upside potential and confidence in the company’s direction going forward.
Recent Events
CNA’s stock recently closed at $46.75, slipping slightly from earlier levels. It now trades under both its 50-day and 200-day moving averages, signaling a bit of near-term softness. But for income investors, the story here isn’t about price momentum—it’s about the sustainability of that dividend yield.
Over the last twelve months, CNA pulled in $14.27 billion in revenue, reflecting a 5.2% year-over-year increase. While that’s encouraging, earnings growth took a hit, dropping sharply by over 90% for the most recent quarter. This kind of volatility isn’t unusual in the insurance world, especially when investment returns fluctuate or claims pile up. The real story, however, lies deeper in the cash flow statements.
Operating cash flow came in at a healthy $2.57 billion, and levered free cash flow landed even higher at $3.47 billion. Those figures are much more telling than quarterly EPS swings. They show CNA’s core business is still generating strong cash, which supports everything from operations to dividends.
Key Dividend Metrics
📈 Forward Dividend Yield: 3.94%
💰 Trailing 12-Month Dividend Rate: $1.76
🧮 Payout Ratio: 50%
🕔 Ex-Dividend Date: February 24, 2025
📅 Next Dividend Payment: March 13, 2025
📊 5-Year Average Dividend Yield: 3.81%
Dividend Overview
CNA isn’t the type of stock that tries to impress with flashy hikes or headline-grabbing specials. It focuses on delivering a steady dividend and doing so with predictability. With a forward yield approaching 4%, it offers a respectable payout—higher than what you’d get from many broader market names.
Its current payout ratio sits right at 50%, a healthy balance that indicates the dividend is well-covered without draining the company’s financial resources. It shows CNA is willing to share profits with shareholders but isn’t stretching too far to do so.
The company also holds $2.56 billion in cash, almost 10% of its market cap. That kind of liquidity isn’t just nice to see—it’s strategic. It provides breathing room in rough markets, reinforces the dividend, and can even offer flexibility if CNA sees compelling investment opportunities down the line.
Dividend Growth and Safety
CNA’s approach to dividend growth is measured. Don’t expect dramatic increases each year. The company generally keeps the regular dividend stable and occasionally layers on a special payout when performance allows. For those who prefer consistency over excitement, that strategy can be pretty appealing.
Over the last five years, CNA’s average yield has been close to 3.8%, which lines up with its current yield. That suggests the dividend has been steady, not eroded by market swings or diluted by inconsistent earnings. For investors prioritizing income, that’s exactly the kind of trend you want to see.
The payout ratio also tells a reassuring story. With net income of $959 million and a market cap just north of $12.6 billion, CNA’s price-to-earnings ratio hovers around 13—reasonable by industry standards. More importantly, it doesn’t need explosive growth to support its dividend. The numbers work just fine at these levels.
On the balance sheet, the company carries a debt-to-equity ratio of about 30.5%. That’s comfortably conservative, especially for an insurer. Many in the industry operate with significantly more leverage, so CNA’s approach here is clearly cautious. For dividend investors, this is a good sign—it reduces the risk that debt obligations will compete with shareholder payouts during tough times.
Then there’s the beta. At 0.47, CNA is less sensitive to market fluctuations than most stocks. That means if the broader market is on a rollercoaster, CNA’s ride is more of a gentle curve. It doesn’t lurch up or down as violently, which helps smooth out the income experience for long-term investors.
This isn’t the kind of company that will triple your money in a year. But for those who appreciate the reliability of a well-covered dividend, CNA continues to make a quiet but strong case for inclusion in an income-oriented portfolio.
Cash Flow Statement
CNA Financial’s cash flow statement for the trailing twelve months shows a healthy picture of operational strength and disciplined capital use. Operating cash flow came in at $2.57 billion, a notable increase from the prior year and consistent with its trend of strong cash generation. Free cash flow closely followed at $2.48 billion, confirming that a large portion of that operating income wasn’t being eaten up by capital expenditures or working capital needs. Capital spending remained modest at just $95 million, reflecting CNA’s low capital intensity as an insurance provider.
On the investing side, the company saw outflows of $1.32 billion, largely in line with previous years, which typically reflects activity related to the firm’s investment portfolio. Financing activities resulted in a cash outflow of $1.12 billion. Most of this came from debt repayments exceeding new issuance, as well as modest buybacks and dividend payments. The company ended the period with $472 million in cash, slightly above where it stood a year prior, showing that despite significant outflows in investing and financing, CNA maintained its liquidity position—solid footing for a dividend-focused business model.
Analyst Ratings
📊 CNA Financial has recently seen mixed analyst sentiment. 🔄 Keefe, Bruyette & Woods adjusted their price target for CNA from $46 to $48, maintaining a ‘Market Perform’ rating. This shift reflects a balanced perspective—acknowledging CNA’s consistent performance while keeping an eye on the broader insurance sector’s headwinds.
⬆️ On a more optimistic note, Bank of America upgraded CNA from ‘Underperform’ to ‘Neutral’ and nudged the price target upward from $40 to $41. This move likely stems from improvements in underwriting performance and steadier investment income, signaling that the business fundamentals are moving in the right direction.
💬 The current consensus price target among analysts sits at $50.50, with the most bullish target reaching $53.00 and the most conservative coming in at $48.00. That range shows a measured sense of confidence in the company’s outlook, with room for modest upside.
Overall, while there’s no runaway bullishness, analysts appear cautiously constructive. Some are holding the line, while others are warming up to CNA’s stable cash flow and strong capital position. The upgrades and revised targets reflect a broader expectation of consistency, rather than dramatic change—a tone that matches well with the company’s long-standing dividend-friendly profile.
Earning Report Summary
CNA Financial’s most recent quarterly results were a bit of a mixed bag, though there were plenty of positives that shouldn’t be overlooked. The company ended the fourth quarter of 2024 with net income of just $21 million, or $0.07 per share. That’s a noticeable drop from the $367 million, or $1.35 per share, they reported a year ago. But the dip was mostly due to a large one-time pension settlement charge—about $290 million after taxes. Stripping that out gives a clearer view of how the business actually performed.
Solid Core Performance
Core income, which removes that big pension charge, came in at $342 million, or $1.25 per share. That’s only a touch below last year’s $362 million, showing that CNA’s core operations are still running smoothly. Their property and casualty insurance segment—really the heart of the company—delivered especially strong results, with core income rising to $451 million. That was helped by better investment returns and solid underwriting results, even though catastrophe-related losses were a bit higher than usual.
The combined ratio in this segment (a key insurance metric) ticked up slightly to 93.1%, mostly due to those higher catastrophe losses. But the underlying combined ratio stayed right around 91.4%, keeping alive a pretty impressive streak—16 straight quarters below 92%.
Growth in Premiums
One thing that really stood out this quarter was growth in written premiums. Gross premiums (excluding third-party captives) were up 9%, and net written premiums climbed 10%. That kind of growth came from a good mix of strong new business and high customer retention, which are both healthy signs in a competitive market.
On the downside, the Life & Group segment posted a small core loss of $18 million, compared to a modest gain last year. And the Corporate & Other segment also reported a slightly bigger loss this time around.
Full-Year Highlights and Dividends
For the full year, CNA reported net income of $959 million, or $3.52 per share, down from $1.2 billion the year before. But again, core income told a more stable story—it hit a record high of $1.316 billion, or $4.83 per share. That strength was driven mainly by the property and casualty side, where solid investment income and record underlying underwriting income offset higher losses from natural disasters.
Investment income was another bright spot, growing 5% in the quarter and 10% over the year, helped by gains in both fixed income and equities. CNA wrapped up the year with a book value per share of $38.82, and excluding certain accounting items, that number rises to $46.16—a solid 8% jump from last year, even after accounting for dividend payouts.
Leadership responded to the strong year by bumping the regular dividend up by 5% to $0.46 per share and announcing a $2.00 per share special dividend. That move shows confidence in the company’s financial footing and rewards long-term shareholders with a little extra.
Chart Analysis
CNA has had an interesting run over the past twelve months. The price action shown in the chart reflects a generally upward trend that gained steam over the summer and fall months before facing some choppiness in early spring. Despite some turbulence, the broader trend remains intact, but there are a few signs worth watching.
Moving Averages
The 50-day moving average (red line) crossed above the 200-day moving average (blue line) in the earlier part of the year, confirming a longer-term uptrend. However, in the most recent weeks, the price has dipped below the 50-day average and is now hovering just above the 200-day average. This suggests the momentum has cooled, at least temporarily. It’s not a sign of weakness, but it does reflect a more neutral tone in the near term.
Volume Activity
Trading volume has stayed relatively stable throughout the year, with only a few notable spikes. These spikes tend to coincide with periods of stronger price moves, both upward and downward. Volume hasn’t surged dramatically during recent pullbacks, which is encouraging—it indicates that the recent price weakness might not be driven by heavy selling.
Relative Strength Index (RSI)
The RSI has bounced around in a fairly healthy range most of the year, rarely breaching overbought or oversold territory. Lately, though, it’s dipped close to the 30 level, a sign the stock could be entering an oversold phase. This doesn’t guarantee a rebound, but it does suggest the recent pullback might be overdone in the short run.
Taken together, the chart shows a stock that’s still in a long-term uptrend but currently pausing for breath. Price support near the 200-day moving average adds some comfort that this isn’t a structural breakdown. It’s the kind of setup where patience tends to be rewarded, especially if the fundamentals remain solid.
Management Team
CNA Financial has recently seen a shift at the top. Doug Worman stepped into the role of President and Chief Executive Officer as of January 1, 2025, taking over from Dino E. Robusto, who now serves as Executive Chairman of the Board. Worman is no stranger to the company—he’s been with CNA since 2017 and most recently led its global underwriting operations. With a career built on underwriting and executive leadership, he’s stepping into the top seat with both credibility and continuity.
The broader leadership team brings a depth of experience from across the insurance and financial sectors. Scott Lindquist holds the CFO role, with a background that includes senior positions at Farmers Group and Genworth Financial. Daniel Franzetti is the Chief Administrative Officer, bringing operational know-how from his time at QBE North America and from within CNA itself. Elizabeth Aguinaga leads human resources, having been with the firm for more than a decade, and Robert Hopper serves as Chief Actuary, following earlier roles at Chubb. Together, this group reflects a strong mix of internal promotion and external experience, built to steer CNA with a steady hand.
Valuation and Stock Performance
Over the past year, CNA’s stock performance has been relatively steady, showing a gain of just over 5%. It’s not a flashy return, but for a company built on stability and steady payouts, that’s about what you’d expect. The current price-to-earnings ratio is around 13.3, placing CNA in a fairly valued position relative to its industry. With a price-to-book ratio of 1.2, the stock trades modestly above its book value, which is typical for a mature insurer with a dependable earnings base.
Where CNA stands out is its income profile. With a dividend yield close to 4% and a payout ratio right at 50%, the company offers an attractive stream of income without overextending itself. Analysts covering the stock have set an average 12-month price target of $50.50, suggesting some mild upside from where it trades today. This reflects moderate optimism rather than aggressive growth expectations.
Financially, CNA is on solid footing. The company maintains a debt-to-equity ratio of 0.31, showing a conservative approach to leverage. Return on equity sits just under 10%, a respectable figure in the insurance world. Strong operating cash flow of $2.57 billion and free cash flow of $2.48 billion over the past twelve months suggest the company isn’t just profitable—it’s generating real cash that can be reinvested, used to pay dividends, or returned to shareholders.
Risks and Considerations
CNA doesn’t operate in a vacuum. Like any insurer, it faces a range of challenges—from unpredictable catastrophe losses to investment income volatility. Natural disasters, weather events, and large claims can all pressure underwriting margins, even for a company with strong risk controls. Regulatory shifts, both in the U.S. and internationally, can also affect how CNA structures policies and manages capital.
Another area of sensitivity is the company’s investment portfolio. Insurance firms often rely on income from bonds and other assets to support earnings, especially in low-claim environments. Changes in interest rates or market instability can impact those returns, which in turn affects the bottom line. And while CNA has historically done a solid job managing its underwriting book, any shift in competitive dynamics or pricing pressure in key segments could lead to margin erosion.
There are also operational risks to consider. Maintaining underwriting discipline while growing the business is a delicate balance. And while the company has done well to manage costs, unexpected increases in claims frequency or severity could create short-term pressure.
Final Thoughts
CNA Financial doesn’t try to be something it’s not. It’s not chasing high-growth, high-risk strategies. Instead, it offers something much more dependable: a business grounded in underwriting strength, conservative financial management, and a consistent dividend.
The leadership transition appears well-planned, with Doug Worman bringing years of institutional knowledge into the CEO seat. The executive bench has depth, and the financials support continued flexibility and resilience. While risks are always part of the equation—especially in a sector that deals with unpredictable events—CNA has built a track record of managing through those cycles.
The stock’s performance over the past year reflects that same story: steady, measured, and backed by real cash flow. For investors seeking reliability, strong fundamentals, and a clear commitment to shareholder returns, CNA continues to make a compelling case.