CNA (NYSE:CNA) is about to release earnings. Ponder this Bear Case Scenario as you contemplate management comments.
The overpowering influence Loews has over CNA calls into question any and all efforts management is making to improve profits.
CNA has a terrible track record of poor underwriting in Commercial lines. The company has shown nothing encouraging in attempts to achieve ratios in line with the industry norms.
CNA has long relied on its investment portfolio to create positive returns and cover insurance losses. They are heavily invested in corporates because the yields are better than governments. Risk reward ratio will one day soon bits CNA very badly.
George Gutowski writes from a caveat emptor perspective.