Since December 2025, CNA Financial has been in a holding pattern, posting a small loss of 4.7% while floating around $44.91. The stock also fell short of the S&P 500’s 9.3% gain during that period.

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Why Do We Think CNA Financial Will Underperform?

We’re sitting this one out for now. Here are three reasons you should be careful with CNA, plus one stock we’d rather own.

1. Net Premiums Earned Point to Soft Demand

Insurers sell policies then use reinsurance (insurance for insurance companies) to protect themselves from large losses. Net premiums earned are therefore what's collected from selling policies less what’s paid to reinsurers as a risk mitigation tool.

CNA Financial’s net premiums earned has grown at a 6.5% annualized rate over the last two years, slightly worse than the broader insurance industry.

2. EPS Barely Growing

Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions.

CNA Financial’s unimpressive 7.7% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.

3. Substandard BVPS Growth Indicates Limited Asset Expansion

We consider book value per share (BVPS) a critical metric for insurance companies. BVPS represents the total net worth per share, providing insight into a company’s financial strength and ability to meet policyholder obligations.

Disappointingly for investors, CNA Financial’s BVPS grew at a sluggish 6.2% annual clip over the last two years.

Final Judgment

We cheer for all companies serving everyday consumers, but in the case of CNA Financial, we’ll be cheering from the sidelines. With its shares underperforming the market lately, the stock trades at $44.91 per share (or a forward price-to-sales ratio of 0.8×). The market typically values companies like CNA Financial based on their anticipated profits for the next 12 months, but there aren’t enough published estimates to arrive at a reliable number. You should avoid this stock for now - better opportunities lie elsewhere. We’d recommend looking at our favorite semiconductor picks and shovels play.

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