CNA Financial Corporation and its property/casualty subsidiaries received a series of credit rating upgrades from AM Best on December 3 2025. The insurer’s Financial Strength Rating was raised to A+ (Superior) from A (Excellent). Its property/casualty subsidiaries’ Long‑Term Issuer Credit Ratings were upgraded to aa‑ (Superior) from a+ (Excellent), and the parent company’s Long‑Term Issuer Credit Rating was lifted to a‑ (Excellent) from bbb+ (Good).
AM Best cited a strong balance sheet, profitable operations, and robust risk management as the basis for the upgrades. The agency highlighted CNA’s consistently positive operating performance over the most recent five‑year period, driven by commercial casualty underwriting and investment metrics that compare favorably with peers. The rating change also reflects the insurer’s highest level of risk‑adjusted capitalization, measured by AM Best’s Capital Adequacy Ratio (BCAR).
CNA’s Q3 2025 financial results provide context for the rating decision. Net income rose to $403 million ($1.48 per share) from $283 million ($1.04 per share) a year earlier, while core income climbed to $409 million ($1.50 per share) from $293 million ($1.08 per share). The property/casualty combined ratio improved to 92.8% (underlying 91.3%) and the expense ratio fell to 29.1%, the lowest since 2008. Net written premiums grew 3% in the quarter, underscoring the strength of CNA’s underwriting and pricing strategy.
Segment analysis shows that commercial casualty underwriting remains the engine of profitability, with investment income contributing a significant share of earnings. The upgrades reflect the insurer’s ability to maintain underwriting discipline while expanding its investment portfolio, a strategy that has helped keep the combined ratio below 95% for several quarters. The rating change signals that AM Best views these segments as sustainable and resilient to market volatility.
Management emphasized the company’s focus on cost discipline and strategic investments in talent and technology. “We are efficiently managing expenses while increasing our investments in AI and expanding our Cardinal E&S offering to capture excess and surplus lines opportunities,” said the CFO. The comment underscores the insurer’s commitment to maintaining strong capital and underwriting performance, which aligns with AM Best’s assessment.
The rating upgrades are expected to lower CNA’s cost of capital, enhance investor confidence, and reinforce its competitive position in the property/casualty market. The shift from a positive to a stable outlook for the subsidiaries indicates that the agency believes the improved ratings are sustainable, providing a more stable foundation for future growth.
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