Fourth Quarter
Full Year
Shareholders' Equity
CHICAGO, Feb. 6, 2023 /PRNewswire/ -- ÃÛÌÒ´«Ã½ Financial Corporation (NYSE: ÃÛÌÒ´«Ã½) today announced fourth quarter 2022 net income of $248 million, or $0.91 per share, versus $266 million, or $0.98 per share, in the prior year quarter.Ìý Net investment losses for the quarter were $26 million compared to net investment gains of $1Ìýmillion in the prior year quarter.Ìý Core income for the quarter was $274 million, or $1.01 per share, versus $265 million, or $0.97 per share, in the prior year quarter.ÌýÌý
Net income for the full year 2022 was $894 million, or $3.28 per share, versus $1,202 million, or $4.41 per share, in the prior year.Ìý Net investment losses for the full year were $154 million compared to net investment gains of $96 million in the prior year.Ìý Core income for the full year 2022 was $1,048 million, or $3.84 per share, versus $1,106 million, or $4.06 per share, in the prior year.
Our Property & Casualty segments produced core income of $342 million for the fourth quarter of 2022, a decrease of $11 million compared to the prior year quarter driven by lower investment income from limited partnerships and common stock, as well as lower underwriting income, including a $36 million increase in pretax catastrophe losses to $76 million.Ìý Property & Casualty segments, excluding third party captives, generated gross written premium growth of 8%, or 9% excluding currency fluctuations, and net written premium growth of 5%, or 7% excluding currency fluctuations, driven by retention of 86% and renewal premium change of +7%.
Our Property & Casualty segments produced core income of $1,240 million for the full year 2022, an increase of $56 million compared to the prior year driven by record highÌýunderwriting income of $559 million as well as higher investment income from fixed income securities, partially offset by lower investment income from limited partnerships and common stock. ÌýProperty & Casualty segments, excluding third party captives, generated gross written premium growth of 10% or 11% excluding foreign currency fluctuations, and net written premium growth of 9% or 10% excluding foreign currency fluctuations, driven by retention of 86%, new business growth of 13% and renewal premium change of +8%.
Our Life & Group segment produced a core loss of $(16) million for the fourth quarter of 2022 versus core income of $6 million in the prior year quarter driven by lower investment income from limited partnerships.Ìý Our Corporate & Other segment produced a core loss of $(52) million for the fourth quarter of 2022, an improvement of $42 million compared to the prior year quarter driven by a lower non-economic charge related to asbestos & environmental pollution and adverse development in legacy mass tort exposures in the prior year quarter.
ÃÛÌÒ´«Ã½ Financial declared a quarterly dividend of $0.42 per share and a special dividend of $1.20 per share, payable MarchÌý9, 2023 to stockholders of record on FebruaryÌý21, 2023.
Results for the Three Months | Results for the Year Ended | ||||||
($ millions, except per share data) | 2022 | 2021 | 2022 | 2021 | |||
Net income | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 248 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 266 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 894 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,202 | |||
Core income (a) | 274 | 265 | 1,048 | 1,106 | |||
Net income per diluted share | $Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 0.91 | $Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 0.98 | $Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý 3.28 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 4.41 | |||
Core income per diluted share | 1.01 | 0.97 | 3.84 | 4.06 |
December 31, 2022 | December 31, 2021 | ||||
Book value per share | $ | 32.58 | $ | 47.20 | |
Book value per share excluding AOCI | 45.71 | 46.02 |
(a) | Management utilizes the core income (loss) financial measure to monitor the ÃÛÌÒ´«Ã½'s operations.Ìý Please refer herein to the Reconciliation of GAAP Measures to Non-GAAP Measures section of this press release for further discussion of this non-GAAP measure. |
"We had another excellent quarter with solid top-line growth and strong underwriting profitability which capped off an excellent year of underwriting performance. Gross written premium growth ex captives was 8% for the quarter and 10% for the year, marking two straight years of double-digit growth.Ìý Overall P&C renewal premium change was 7% in the quarter and 9% in Commercial which is up 2 points from the third quarter.Ìý The combined ratio was 93.7% for the quarter and a record low 93.2% for the year.Ìý We produced core income of $274 million for the quarter and $1,048 million for the year.Ìý Core income was greater than $1 billion for the second straight year and represents our highest two-year total on record.Ìý Given our strong results in 2022, we are optimistic about our opportunities to capitalize on the continued favorable market conditions, and achieve a meaningful benefit from the tailwind of higher yields on our fixed maturity portfolio," said Dino E. Robusto, Chairman & Chief Executive Officer of ÃÛÌÒ´«Ã½ Financial Corporation.
Property & Casualty Operations
Results for the Three Months | Results for the Year Ended | ||||||||||
($ millions) | 2022 | 2021 | 2022 | 2021 | |||||||
Gross written premiums ex. 3rd party captives | $Ìý Ìý Ìý Ìý 2,704 | $Ìý Ìý Ìý Ìý 2,513 | $Ìý Ìý Ìý 10,264 | $Ìý Ìý Ìý Ìý 9,303 | |||||||
GWP ex. 3rd party captives change (% year over year) | 8 | % | 10 | % | |||||||
Net written premiums | $Ìý Ìý Ìý Ìý 2,284 | $Ìý Ìý Ìý Ìý 2,166 | $Ìý Ìý Ìý Ìý 8,663 | $Ìý Ìý Ìý Ìý 7,921 | |||||||
NWP change (% year over year) | 5 | % | 9 | % | |||||||
Net earned premiums | $Ìý Ìý Ìý Ìý 2,116 | 1,997 | $Ìý Ìý Ìý Ìý 8,196 | $Ìý Ìý Ìý Ìý 7,685 | |||||||
NEP change (% year over year) | 6 | % | 7 | % | |||||||
Underwriting gain | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 134 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 142 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 559 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 290 | |||||||
Net investment income | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 290 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 306 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 982 | $Ìý Ìý Ìý Ìý 1,178 | |||||||
Core income | 342 | 353 | 1,240 | 1,184 | |||||||
Loss ratio excluding catastrophes and development | 59.9 | % | 60.1 | % | 60.0 | % | 60.0 | % | |||
Effect of catastrophe impacts | 3.6 | 2.0 | 3.0 | 5.1 | |||||||
Effect of development-related items | (1.1) | (0.3) | (1.0) | (0.3) | |||||||
Loss ratio | 62.4 | % | 61.8 | % | 62.0 | % | 64.8 | % | |||
Expense ratio | 31.1 | % | 30.8 | % | 30.9 | % | 31.1 | % | |||
Combined ratio | 93.7 | % | 92.9 | % | 93.2 | % | 96.2 | % | |||
Combined ratio excluding catastrophes and development | 91.2 | % | 91.2 | % | 91.2 | % | 91.4 | % |
Business Operating Highlights
Specialty
Results for the Three Months | Results for the Year Ended | ||||||||||
($ millions) | 2022 | 2021 | 2022 | 2021 | |||||||
Gross written premiums ex. 3rd party captives | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 998 | $Ìý Ìý Ìý Ìý 1,016 | $Ìý Ìý Ìý Ìý 3,814 | $Ìý Ìý Ìý Ìý 3,672 | |||||||
GWP ex. 3rd party captives change (% year over year) | (2) | % | 4 | % | |||||||
Net written premiums | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 863 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 875 | $Ìý Ìý Ìý Ìý 3,306 | $Ìý Ìý Ìý Ìý 3,225 | |||||||
NWP change (% year over year) | (1) | % | 3 | % | |||||||
Net earned premiums | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 827 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 806 | $Ìý Ìý Ìý Ìý 3,203 | $Ìý Ìý Ìý Ìý 3,076 | |||||||
NEP change (% year over year) | 3 | % | 4 | % | |||||||
Underwriting gain | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 93 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 81 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 366 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 347 | |||||||
Loss ratio excluding catastrophes and development | 58.4 | % | 59.1 | % | 58.6 | % | 59.1 | % | |||
Effect of catastrophe impacts | — | 0.4 | 0.1 | 0.4 | |||||||
Effect of development-related items | (0.6) | (0.6) | (1.3) | (1.4) | |||||||
Loss ratio | 57.8 | % | 58.9 | % | 57.4 | % | 58.1 | % | |||
Expense ratio | 30.8 | % | 30.9 | % | 31.0 | % | 30.5 | % | |||
Combined ratio | 88.8 | % | 89.9 | % | 88.6 | % | 88.7 | % | |||
Combined ratio excluding catastrophes and development | 89.4 | % | 90.1 | % | 89.8 | % | 89.7 | % |
Commercial
Results for the Three Months | Results for the Year Ended | ||||||||||
($ millions) | 2022 | 2021 | 2022 | 2021 | |||||||
Gross written premiums ex. 3rd party captives | $ÌýÌýÌýÌýÌýÌý 1,345 | $Ìý Ìý Ìý Ìý 1,158 | $ÌýÌýÌýÌýÌýÌý 5,056 | $ÌýÌýÌýÌýÌýÌý 4,334 | |||||||
GWP ex. 3rd party captives change (% year over year) | 16 | % | 17 | % | |||||||
Net written premiums | $ÌýÌýÌýÌýÌýÌý 1,096 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 973 | $ÌýÌýÌýÌýÌýÌý 4,193 | $ÌýÌýÌýÌýÌýÌý 3,595 | |||||||
NWP change (% year over year) | 13 | % | 17 | % | |||||||
Net earned premiums | $ÌýÌýÌýÌýÌýÌý 1,022 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 923 | $ÌýÌýÌýÌýÌýÌý 3,923 | $ÌýÌýÌýÌýÌýÌý 3,552 | |||||||
NEP change (% year over year) | 11 | % | 10 | % | |||||||
Underwriting gain (loss) | $Ìý Ìý Ìý Ìý Ìý Ìý 12 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 47 | $Ìý Ìý Ìý Ìý Ìý 106 | $ÌýÌýÌýÌýÌýÌýÌýÌý (112) | |||||||
Loss ratio excluding catastrophes and development | 61.5 | % | 61.4 | % | 61.5 | % | 61.0 | % | |||
Effect of catastrophe impacts | 7.2 | 2.9 | 5.6 | 10.0 | |||||||
Effect of development-related items | (0.9) | (0.2) | (0.7) | 0.5 | |||||||
Loss ratio | 67.8 | % | 64.1 | % | 66.4 | % | 71.5 | % | |||
Expense ratio | 30.8 | % | 30.4 | % | 30.4 | % | 31.1 | % | |||
Combined ratio | 99.0 | % | 94.9 | % | 97.3 | % | 103.1 | % | |||
Combined ratio excluding catastrophes and development | 92.7 | % | 92.2 | % | 92.4 | % | 92.6 | % |
International
Results for the Three Months | Results for the Year Ended | ||||||||||
($ millions) | 2022 | 2021 | 2022 | 2021 | |||||||
Gross written premiums | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 361 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 339 | $ÌýÌýÌýÌýÌýÌý 1,394 | $ÌýÌýÌýÌýÌýÌý 1,297 | |||||||
GWP change (% year over year) | 6 | % | 7 | % | |||||||
Net written premiums | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 325 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 318 | $ÌýÌýÌýÌýÌýÌý 1,164 | $ÌýÌýÌýÌýÌýÌý 1,101 | |||||||
NWP change (% year over year) | 2 | % | 6 | % | |||||||
Net earned premiums | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 267 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 268 | $ÌýÌýÌýÌýÌýÌý 1,070 | $ÌýÌýÌýÌýÌýÌý 1,057 | |||||||
NEP change (% year over year) | — | % | 1 | % | |||||||
Underwriting gain | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 29 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 14 | $Ìý Ìý Ìý Ìý Ìý Ìý 87 | $Ìý Ìý Ìý Ìý Ìý Ìý 55 | |||||||
Loss ratio excluding catastrophes and development | 58.1 | % | 58.5 | % | 58.5 | % | 59.0 | % | |||
Effect of catastrophe impacts | 0.9 | 4.1 | 2.2 | 2.6 | |||||||
Effect of development-related items | (3.0) | (0.2) | (1.2) | 0.1 | |||||||
Loss ratio | 56.0 | % | 62.4 | % | 59.5 | % | 61.7 | % | |||
Expense ratio | 32.9 | % | 32.4 | % | 32.3 | % | 33.1 | % | |||
Combined ratio | 88.9 | % | 94.8 | % | 91.8 | % | 94.8 | % | |||
Combined ratio excluding catastrophes and development | 91.0 | % | 90.9 | % | 90.8 | % | 92.1 | % |
Life & Group
Results for the Three Months | Results for the Year | ||||||||||
($ millions) | 2022 | 2021 | 2022 | 2021 | |||||||
Net earned premiums | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 117 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 122 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 473 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 491 | |||||||
Net investment income | 204 | 242 | 804 | 966 | |||||||
Core (loss) income | (16) | 6 | (9) | 126 |
Core results decreased $22 million for the fourth quarter of 2022 as compared with the prior year quarter primarily due to a $40 million pretax decline in net investment income from limited partnerships partially offset by improved morbidity.
Corporate & Other
Results for the Three Months | Results for the Year | ||||||||||
($ millions) | 2022 | 2021 | 2022 | 2021 | |||||||
Net investment income | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 9 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 3 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 19 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 15 | |||||||
Insurance claims and policyholders' benefits | 40 | 86 | 76 | 109 | |||||||
Interest expense | 28 | 28 | 112 | 112 | |||||||
Core loss | (52) | (94) | (183) | (204) |
Core loss improved $42 million for the fourth quarter of 2022 as compared with the prior year quarter. ÌýThe application of retroactive reinsurance accounting to additional cessions to the A&EP Loss Portfolio Transfer in both periods resulted in after-tax non-economic charges of $28Ìýmillion and $48Ìýmillion in 2022 and 2021, respectively.Ìý The additional cessions in those periods were $87Ìýmillion and $138Ìýmillion, respectively.Ìý Results for the prior year quarter include a $16Ìýmillion after-tax impact from unfavorable development related to legacy mass tort exposures in the fourth quarter of 2021.
Net Investment Income
Results for the Three Months | Results for the Year | ||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||
Net investment income | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 503 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 551 | $ÌýÌýÌýÌýÌýÌý 1,805 | $ÌýÌýÌýÌýÌýÌý 2,159 | |||||||
Net investment income decreased $48Ìýmillion for the fourth quarter of 2022 as compared with the prior year quarter.Ìý The decrease was driven by a decline in income from limited partnership and common stock investments, which returned 0.9%, or $20Ìýmillion for the fourth quarter of 2022 compared with a return of 5.1%, or $108Ìýmillion in the prior year quarter.Ìý The decrease was partially offset by a $33Ìýmillion increase in income from fixed income securities.
Stockholders' Equity
Stockholders' equity of $8.8Ìýbillion decreased 31% from year-end 2021, primarily due to net unrealized investment losses compared to net unrealized investment gains at year-end 2021, resulting from the effect of higher interest rates on the fair value of the fixed income portfolio and dividends paid to stockholders, partially offset by net income.Ìý Net unrealized investment gains decreasedÌý$3.8Ìýbillion after-tax driven by a decrease in unrealized investment gains of $7.8Ìýbillion, partially offset by Shadow Adjustments of $3.1Ìýbillion and tax of $1.0Ìýbillion.Ìý Book value per share of $32.58 likewise decreased 31% from year-end 2021.
Book value per share ex AOCI of $45.71 increased 7% from year-end 2021 adjusting for $3.60 of dividends per share.
As of ¶Ù±ð³¦±ð³¾²ú±ð°ùÌý31, 2022, statutory capital and surplus for the Combined Continental Casualty Companies was $10.6 billion.
About the ÃÛÌÒ´«Ã½
ÃÛÌÒ´«Ã½ is one of the largest U.S. commercial property and casualty insurance companies.Ìý Backed by more than 125 years of experience, ÃÛÌÒ´«Ã½ provides a broad range of standard and specialized insurance products and services for businesses and professionals in the U.S., Canada and Europe.ÌýFor more information, please visit ÃÛÌÒ´«Ã½ at .
Contact
Media: | Analysts: | |
Cara McCall, 312-822-1309 | Ralitza Todorova, 312-822-3834 | |
Conference Call and Webcast/Presentation Information
A conference call for investors and the professional investment community will be held atÌý8:00 a.m. (CT) today.Ìý On the conference call will be Dino E. Robusto, Chairman and Chief Executive Officer of ÃÛÌÒ´«Ã½ Financial Corporation, Scott R. Lindquist, Executive Vice President and Chief Financial Officer of ÃÛÌÒ´«Ã½ Financial Corporation and other members of senior management.Ìý Participants can access the call by dialingÌý(844) 481-2830 (USA Toll Free) or +1 (412) 317-1850 (International).Ìý The call will also be broadcast live on the internet and may be accessed from the Investor Relations page of the ÃÛÌÒ´«Ã½ website ().Ìý A presentation will be posted and available on the ÃÛÌÒ´«Ã½ website and will provide additional insight into the results.
The call is available to the media, but questions will be restricted to investors and the professional investment community.Ìý An online replay will be available on ÃÛÌÒ´«Ã½'s website following the call.Ìý Financial supplement information related to the results is available on the investor relations pages of the ÃÛÌÒ´«Ã½ website or by contacting investor.relations@cna.com.
Definition of Reported Segments
Financial Measures
Management utilizes the following metrics in their evaluation of the Property & Casualty Operations.Ìý These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America (³Ò´¡´¡±Ê).Ìý
Gross written premiums ex. 3rd party captivesÌýrepresents gross written premiums excluding business which is ceded to third party captives, including business related to large warranty programs.
Underwriting results represent net earned premiums less total insurance expenses, which includes insurance claims and policyholders' benefits, amortization of deferred acquisition costs and other insurance related expenses, pre-tax.
Statutory capital and surplusÌýrepresents the excess of an insurance company's admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices.Ìý Statutory capital and surplus as of the current period is preliminary.
The ÃÛÌÒ´«Ã½'s investment portfolio is monitored by management through analysis of various factors including unrealized gains and losses on securities, portfolio duration and exposure to market and credit risk.
To the extent that unrealized gains on fixed income securities supporting long term care reserves would result in a premium deficiency if realized, a related increase in Insurance reserves is recorded, net of tax, as a reduction of net unrealized gains (losses), through Other comprehensive income (loss).Ìý To the extent that unrealized gains or losses on fixed income securities supporting structured settlements not funded by annuities would impact the reserve balance if realized, a related increase or decrease in Insurance reserves is recorded, net of tax, as a reduction or increase of net unrealized gains (losses), through Other comprehensive income (Shadow Adjustments).
Reconciliation of GAAP Measures to Non-GAAP Measures
This press release also contains financial measures that are not in accordance with GAAP.Ìý Management utilizes these financial measures to monitor the ÃÛÌÒ´«Ã½'s insurance operations and investment portfolio.Ìý The ÃÛÌÒ´«Ã½ believes the presentation of these measures provides investors with a better understanding of the significant factors that comprise the ÃÛÌÒ´«Ã½'s operating performance.Ìý Reconciliations of these measures to the most comparable GAAP measures follow below.
Reconciliation of Net Income (Loss) to Core Income (Loss)
Core income (loss)Ìýis calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses and any cumulative effects of changes in accounting guidance.Ìý The calculation of core income (loss) excludes net investment gains or losses because net investment gains or losses are generally driven by economic factors that are not necessarily reflective of our primary operations.Ìý Management monitors core income (loss) for each business segment to assess segment performance.Ìý Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure.
Results for the Three Months | Results for the Year Ended | ||||||
($ millions) | 2022 | 2021 | 2022 | 2021 | |||
Net income | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 248 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 266 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 894 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,202 | |||
Less: Net investment (losses) gains | (26) | 1 | (154) | 96 | |||
Core income | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 274 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 265 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,048 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,106 |
Reconciliation of Net Income (Loss) per Diluted Share to Core Income (Loss) per Diluted Share
Core income (loss) per diluted share provides management and investors with a valuable measure of the ÃÛÌÒ´«Ã½'s operating performance for the same reasons applicable to its underlying measure, core income (loss).Ìý Core income (loss) per diluted share is core income (loss) on a per diluted share basis.
Results for the Three Months | Results for the Year Ended | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Net income per diluted share | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 0.91 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 0.98 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 3.28 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 4.41 | |||
Less: Net investment (losses) gains | (0.10) | 0.01 | (0.56) | 0.35 | |||
Core income per diluted share | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1.01 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 0.97 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 3.84 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 4.06 |
Reconciliation of Book Value per Share to Book Value per Share Excluding AOCI
Book value per share excluding AOCI allows management and investors to analyze the amount of the ÃÛÌÒ´«Ã½'s net worth primarily attributable to the ÃÛÌÒ´«Ã½'s business operations.Ìý The ÃÛÌÒ´«Ã½ believes this measurement is useful as it reduces the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.
December 31, | December 31, | ||
Book value per share | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 32.58 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 47.20 | |
Less: Per share impact of AOCI | (13.13) | 1.18 | |
Book value per share excluding AOCI | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 45.71 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 46.02 |
Calculation of Return on Equity and Core Return on Equity
Core return on equity provides management and investors with a measure of how effectively the ÃÛÌÒ´«Ã½ is investing the portion of the ÃÛÌÒ´«Ã½'s net worth that is primarily attributable to its business operations.
Results for the Three Months | Results for the Year Ended | |||||||
($ millions) | 2022 | 2021 | 2022 | 2021 | ||||
Annualized net income | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 992 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,067 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 894 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,202 | ||||
Average stockholders' equity including AOCI (a) | 8,459 | 12,637 | 10,817 | 12,658 | ||||
Return on equity | 11.7 | % | 8.4 | % | 8.3 | % | 9.5 | % |
Annualized core income | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,096 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,060 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,048 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,106 | ||||
Average stockholders' equity excluding AOCI (a) | 12,308 | 12,403 | 12,435 | 12,196 | ||||
Core return on equity | 8.9 | % | 8.5 | % | 8.4 | % | 9.1 | % |
(a) | Average stockholders' equity is calculated using a simple average of the beginning and ending balances for the period. |
For additional information, please refer to ÃÛÌÒ´«Ã½'s most recent 10-K on file with the Securities and Exchange Commission, as well as the financial supplement, available at .
Forward-Looking Statements
This press release includes statements that relate to anticipated future events (forward-looking statements) rather than actual present conditions or historical events.Ìý These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as "believes," "expects," "intends," "anticipates," "estimates" and similar expressions.Ìý Forward-looking statements, by their nature, are subject to a variety of inherent risks and uncertainties that could cause actual results to differ materially from the results projected.Ìý Many of these risks and uncertainties cannot be controlled by ÃÛÌÒ´«Ã½.Ìý For a detailed description of these risks and uncertainties, please refer to ÃÛÌÒ´«Ã½'s filings with the Securities and Exchange Commission, available at .
Any forward-looking statements made in this press release are made by ÃÛÌÒ´«Ã½ as of the date of this press release.Ìý Further, ÃÛÌÒ´«Ã½ does not have any obligation to update or revise any forward-looking statement contained in this press release, even if ÃÛÌÒ´«Ã½'s expectations or any related events, conditions or circumstances change.
Any descriptions of coverage under ÃÛÌÒ´«Ã½ policies or programs in this press release are provided for convenience only and are not to be relied upon with respect to questions of coverage, exclusions or limitations.Ìý With regard to all such matters, the terms and provisions of relevant insurance policies are primary and controlling.Ìý In addition, please note that all coverages may not be available in all states.
"ÃÛÌÒ´«Ã½" is a registered trademark of ÃÛÌÒ´«Ã½ Financial Corporation.Ìý Certain ÃÛÌÒ´«Ã½ Financial Corporation subsidiaries use the "ÃÛÌÒ´«Ã½" trademark in connection with insurance underwriting and claims activities.Ìý Copyright © 2023 ÃÛÌÒ´«Ã½.Ìý All rights reserved.
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