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CNA posts lower profits, citing social inflation - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers CNA posts lower profits, citing social inflation by Richard Sine Douglas M. Worman Catastrophes , E&O , Excess and Surplus Lines , Financial Results , P/C Insurers , Technology CNA May 4, 2026 CNA Financial reported sharply lower profits and core income, citing competition and reserve strengthening in response to social inflation. Net income declined 23% from the prior-year quarter to $211 million. Core income declined nearly 20% to $281 million. Property and casualty core income at the large Chicago-based commercial insurer declined 20% to $248 million, reflecting “lower underlying results and unfavorable prior period development partially offset by higher net investment income,” the company said in its earnings statement. The company also reported core income losses in its life and group and corporate divisions. “We grew certain pockets of our portfolio that offer accretive returns and scaled back in other areas where the market can’t earn an acceptable return,” CNA CEO Douglas M. Worman said in prepared remarks. “We took prudent actions this quarter to strengthen both our prior accident year reserves as well as our current accident year loss ratio.” The company’s P&C all-in combined ratio deteriorated to 102.2%, compared with 98.4% for the prior-year quarter. Catastrophe impacts were driven by severe convective storms and were similar to last year. But the company also strengthened its reserves in its excess casualty and affinity professional errors and omissions classes, Mr. Worman said. “We do not anticipate social inflation abating, and the continued impacts of increased attorney involvement and lengthening development patterns have been reflected in our prior accident year reserves and current accident year loss ratio,” Mr. Worman said. Combined ratios also deteriorated in the commercial and specialty lines. In commercial, it went to 103.5% from 101.1% in the prior-year quarter. Mr. Worman cited excess casualty, where the company sees “the potential for higher claim frequency and severity.” In specialty lines, the combined ratio deteriorated to 102.7%, compared with 95.1% for the prior-year quarter. The company strengthened its reserves in recent accident years for affinity professional errors and emissions lines “where we are reacting to signs of slightly higher severity.” Net written premium growth was 1% across the company. New business was up 3%, most notably in specialty, where new business was up 13% in the quarter. Mr. Worman noted that CNA’s expense ratio was down, citing investments in technology and artificial intelligence. He cited more than 100 AI initiatives, including intake and triage of submissions, and account analysis for risk control. 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