Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 30, 2023

CNA FINANCIAL CORPORATION


(Exact name of registrant as specified in its charter)

Delaware

1-5823

36-6169860

(State or other jurisdiction

(Commission

(IRS Employer

of incorporation)

File Number)

Identification No.)

151 N. Franklin

Chicago, IL 60606

(Address of principal executive offices) (Zip Code)

(312) 822-5000

(Registrant's telephone number, including area code)


NOT APPLICABLE
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, Par value $2.50

"CNA"

New York Stock Exchange

Chicago Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On October 30, 2023, the registrant issued a press release and posted on its website (www.cna.com) a financial supplement providing information on its results of operations for the third quarter 2023. The press release is furnished as Exhibit 99.1 and the financial supplement is furnished as Exhibit 99.2 to this Form 8-K.

The information under Item 2.02 and in Exhibits 99.1 and 99.2 in this Current Report is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information under Item 2.02 and in Exhibits 99.1 and 99.2 in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits:

See Exhibit Index.

EXHIBIT INDEX


Exhibit No.						Description
99.1						CNA Financial Corporation press release, issued October 30, 2023, providing information on the third quarter 2023 results of operations.

99.2						CNA Financial Corporation financial supplement, posted on its website October 30, 2023, providing supplemental financial information on the third quarter 2023.

104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		CNA Financial Corporation
		(Registrant)

Date: October 30, 2023	By	/s/ Scott R. Lindquist
		(Signature)
		Scott R. Lindquist Executive Vice President and Chief Financial Officer

FOR IMMEDIATE RELEASE

CNA FINANCIAL ANNOUNCES THIRD QUARTER 2023

NET INCOME OF $0.95 PER SHARE AND CORE INCOME OF $1.06 PER SHARE

•Net income of $258 million versus net loss of $42 million in the prior year quarter; core income of $289 million versus $43 million in the prior year quarter.

•Core income up 56% to $291 million versus $186 million in the prior year quarter, excluding the results of the Life & Group annual reserve reviews.

•P&C core income up 35% to $351 million versus $260 million in the prior year quarter, reflects higher net investment income, record high pretax underlying underwriting income and lower catastrophe losses.

•Life & Group core loss of $29 million versus $192 million in the prior year quarter, reflects an unfavorable after-tax impact of $2 million in 2023 and $143 million in 2022 as a result of the annual reserve reviews. Results for the prior year quarter have been adjusted to reflect the application of the LDTI accounting standard.

•Net investment income up 31% to $553 million pretax, includes a $72 million increase from limited partnerships and common stock to $28 million and a $59 million increase from fixed income securities and other investments to $525 million.

•P&C combined ratio of 94.3%, compared with 95.8% in the prior year quarter, including 4.1 points of catastrophe loss impact compared with 5.5 points in the prior year quarter. P&C underlying combined ratio was 90.4% compared with 91.1%, in the prior year quarter. P&C underlying loss ratio was 60.0% and the expense ratio was 30.1%.

•P&C segments, excluding third party captives, generated gross written premium growth of 7% and net written premium growth of 6%. P&C renewal premium change of +6%, with written rate of +5% and exposure change of +1%.

•Book value per share of $31.61; book value per share excluding AOCI of $45.43, a 7% increase from year-end 2022 adjusting for $2.46 of dividends per share.

•Board of Directors declares regular quarterly cash dividend of $0.42 per share.

CHICAGO, October 30, 2023 --- CNA Financial Corporation (NYSE: CNA) today announced third quarter 2023 net income of $258 million, or $0.95 per share, versus net loss of $42 million, or $(0.15) per share, in the prior year quarter. Net investment losses for the quarter were $31 million compared to $85 million in the prior year quarter. Core income for the quarter was $289 million, or $1.06 per share, versus $43 million, or $0.16 per share, in the prior year quarter.

Our Property & Casualty segments produced core income of $351 million for the third quarter of 2023, an increase of $91 million compared to the prior year quarter driven by higher net investment income, record high pretax underlying underwriting income and lower catastrophe losses. P&C segments, excluding third party captives, generated gross written premium growth of 7% and net written premium growth of 6% for the third quarter of 2023 driven by renewal premium change of +6%, including rate of +5% and exposure change of +1%.

Our Life & Group segment produced a core loss of $29 million for the third quarter of 2023 versus $192 million in the prior year quarter, which reflects an unfavorable after-tax impact of $2 million in 2023 and $143 million in 2022 as a result of the annual reserve reviews.

Our Corporate & Other segment produced a core loss of $33 million for the third quarter of 2023 versus $25 million in the prior year quarter.

CNA Financial declared a quarterly dividend of $0.42 per share, payable November 30, 2023 to stockholders of record on November 13, 2023.


	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
($ millions, except per share data)	2023		2022 (a)		2023		2022 (a)
Net income (loss)	$	258	$	(42)	$	838	$	443
Core income (b)	289		43		922		571

Net income (loss) per diluted share	$	0.95	$	(0.15)	$	3.08	$	1.63
Core income per diluted share	1.06		0.16		3.39		2.10


	September 30, 2023		December 31, 2022 (a)
Book value per share	$	31.61	$	31.55
Book value per share excluding AOCI		45.43		44.83

(a)As of January 1, 2023, the Company adopted LDTI using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts have been adjusted to reflect application of the new guidance.

(b)Management utilizes the core income (loss) financial measure to monitor the Company's operations. 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 continued to produce very strong results with a significant increase in core income driven by a 31% increase in net investment income, record levels of P&C underlying underwriting gain, lower levels of catastrophe loss, and improved results in Life & Group. Our annual Life and Group reserve assumption review resulted in a neutral change this year compared to a $143 million after-tax loss last year. Excluding the impacts of the Life & Group reserve review, our core income was still up by 56% this quarter.

P&C core income was up 35% in the quarter driven by higher investment income, and $220 million of underlying underwriting income. The all-in combined ratio was 94.3% with pretax catastrophe losses of $94 million or 4.1 points, and 0.2 points of favorable prior period development. The P&C underlying combined ratio was 90.4%.

We recorded 7% growth in gross written premium ex captives and 6% growth in net written premium. Our overall rate change remained stable at 5%, and importantly, rates improved in our casualty lines most impacted by social inflation, and rate turned positive in Specialty as decreases in management liability pricing moderated in the quarter. We are encouraged by these trends as we continue to cover our long run loss cost trends from written rate increases together with the exposure increases that act like rate, and we are confident in our ability to continue to leverage the favorable market conditions," said Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.

Property & Casualty Operations


	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2023			2022			2023			2022
Gross written premiums ex. 3rd party captives	$	2,595		$	2,430		$	8,305		$	7,560
GWP ex. 3rd party captives change (% year over year)	7		%				10		%
Net written premiums	$	2,178		$	2,060		$	6,938		$	6,379
NWP change (% year over year)	6		%				9		%
Net earned premiums	$	2,295		$	2,103		$	6,662		$	6,080
NEP change (% year over year)	9		%				10		%
Underwriting gain	$	131		$	84		$	399		$	425
Net investment income	$	318		$	230		$	951		$	692
Core income	$	351		$	260		$	1,071		$	898

Loss ratio excluding catastrophes and development	60.0		%	59.9		%	59.9		%	60.0		%
Effect of catastrophe impacts	4.1			5.5			3.2			2.8
Effect of development-related items	(0.2)			(0.8)			—			(0.9)
Loss ratio	63.9		%	64.6		%	63.1		%	61.9		%

Expense ratio	30.1		%	30.8		%	30.6		%	30.8		%

Combined ratio	94.3		%	95.8		%	94.0		%	93.0		%
Combined ratio excluding catastrophes and development	90.4		%	91.1		%	90.8		%	91.1		%

•The underlying combined ratio improved 0.7 points as compared with the prior year quarter. The expense ratio improved 0.7 points driven by net earned premium growth of 9% and a favorable International reinsurance acquisition related catch-up adjustment partially offset by higher employee related costs. The underlying loss ratio was largely consistent with the prior year quarter.

•The combined ratio improved 1.5 points as compared with the prior year quarter. Catastrophe losses were $94 million, or 4.1 points of the loss ratio in the quarter compared with $114 million, or 5.5 points of the loss ratio, for the prior year quarter. Favorable net prior year development improved the loss ratio by 0.2 points in the current quarter as compared with 0.8 points of improvement in the prior year quarter.

•P&C segments, excluding third party captives, generated gross written premium growth of 7% and net written premium growth of 6%. Excluding currency fluctuations, gross written premiums grew 7% and net written premiums grew 5%.

Business Operating Highlights

Specialty


	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2023			2022			2023			2022
Gross written premiums ex. 3rd party captives	$	949		$	958		$	2,796		$	2,816
GWP ex. 3rd party captives change (% year over year)	(1)		%				(1)		%
Net written premiums	$	825		$	840		$	2,438		$	2,443
NWP change (% year over year)	(2)		%				—		%
Net earned premiums	$	829		$	810		$	2,438		$	2,376
NEP change (% year over year)	2		%				3		%


Underwriting gain	$	83		$	92		$	237		$	273

Loss ratio excluding catastrophes and development	58.6		%	58.4		%	58.5		%	58.6		%
Effect of catastrophe impacts	—			0.2			—			0.1
Effect of development-related items	(0.6)			(1.9)			(0.3)			(1.4)
Loss ratio	58.0		%	56.7		%	58.2		%	57.3		%

Expense ratio	31.8		%	31.7		%	31.9		%	31.0		%

Combined ratio	90.1		%	88.7		%	90.3		%	88.5		%
Combined ratio excluding catastrophes and development	90.7		%	90.4		%	90.6		%	89.8		%

•The underlying combined ratio increased 0.3 points as compared with the prior year quarter comprised of a 0.2 point increase in the underlying loss ratio and a 0.1 point increase in the expense ratio.

•The combined ratio increased 1.4 points as compared with the prior year quarter. Favorable net prior year development improved the loss ratio by 0.6 points in the quarter compared with 1.9 points of improvement in the prior year quarter.

•Gross written premiums, excluding third party captives declined 1% and net written premiums declined 2% for the third quarter of 2023.

Commercial


	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2023			2022			2023			2022
Gross written premiums ex. 3rd party captives	$	1,340		$	1,184		$	4,384		$	3,711
GWP ex. 3rd party captives change (% year over year)	13		%				18		%
Net written premiums	$	1,071		$	962		$	3,588		$	3,097
NWP change (% year over year)	11		%				16		%
Net earned premiums	$	1,170		$	1,023		$	3,336		$	2,901
NEP change (% year over year)	14		%				15		%


Underwriting gain (loss)	$	13		$	(23)		$	96		$	94

Loss ratio excluding catastrophes and development	61.5		%	61.5		%	61.5		%	61.5		%
Effect of catastrophe impacts	7.4			10.0			5.7			5.0
Effect of development-related items	—			—			(0.2)			(0.5)
Loss ratio	68.9		%	71.5		%	67.0		%	66.0		%

Expense ratio	29.5		%	29.9		%	29.6		%	30.1		%

Combined ratio	98.9		%	101.9		%	97.1		%	96.6		%
Combined ratio excluding catastrophes and development	91.5		%	91.9		%	91.6		%	92.1		%

•The underlying combined ratio improved 0.4 points as compared with the prior year quarter, reflecting the lowest underlying combined ratio on record. The expense ratio improved 0.4 points driven by net earned premium growth of 14%.

•The combined ratio decreased 3.0 points as compared with the prior year quarter. Catastrophe losses were $87 million, or 7.4 points of the loss ratio in the quarter compared with $103 million, or 10.0 points of the loss ratio, for the prior year quarter.

•Gross written premiums, excluding third party captives grew 13% and net written premiums grew 11% for the third quarter of 2023.

International


	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2023			2022			2023			2022
Gross written premiums	$	306		$	288		$	1,125		$	1,033
GWP change (% year over year)	6		%				9		%
Net written premiums	$	282		$	258		$	912		$	839
NWP change (% year over year)	9		%				9		%
Net earned premiums	$	296		$	270		$	888		$	803
NEP change (% year over year)	10		%				11		%


Underwriting gain	$	35		$	15		$	66		$	58

Loss ratio excluding catastrophes and development	57.9		%	58.6		%	57.8		%	58.6		%
Effect of catastrophe impacts	2.3			4.1			2.7			2.7
Effect of development-related items	—			—			1.7			(0.6)
Loss ratio	60.2		%	62.7		%	62.2		%	60.7		%

Expense ratio	28.1		%	31.7		%	30.3		%	32.1		%

Combined ratio	88.3		%	94.4		%	92.5		%	92.8		%
Combined ratio excluding catastrophes and development	86.0		%	90.3		%	88.1		%	90.7		%

•The underlying combined ratio improved 4.3 points as compared with the prior year quarter. The expense ratio improved 3.6 points driven by a favorable reinsurance acquisition related catch-up adjustment and net earned premium growth of 10%. The underlying loss ratio improved 0.7 points as compared with the prior year quarter.

•The combined ratio improved 6.1 points as compared with the prior year quarter. Catastrophe losses were $7 million, or 2.3 points of the loss ratio in the quarter compared with $10 million, or 4.1 points of the loss ratio, for the prior year quarter.

•Excluding currency fluctuations, gross written premiums grew 4% and net written premiums grew 7% for the third quarter of 2023.

Life & Group


	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
($ millions)	2023		2022 (a)		2023		2022 (a)
Net earned premiums	$	112	$	118	$	340	$	356
Claims, benefits and expenses	371		556		1,087		1,236

Net investment income	216		187		659		600
Core loss	(29)		(192)		(52)		(196)

(a) As of January 1, 2023, the Company adopted LDTI using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts have been adjusted to reflect application of the new guidance.

Core loss improved $163 million for the third quarter of 2023 as compared with the prior year quarter. Both periods are inclusive of assumption updates as a result of the annual reserve reviews. Results for the prior year quarter have been adjusted to reflect the application of the LDTI accounting standard and include an unfavorable impact from reserve assumption updates in 2022.

The assumption updates in the third quarter of 2023 unfavorably impacted core loss by $2 million after-tax, which is comprised of an $8 million increase in long term care reserves, partially offset by a $6 million reduction in structured settlement reserves.

Adjusted to reflect the application of the LDTI accounting standard, assumption updates in the third quarter of 2022 unfavorably impacted core loss by $143 million after-tax. The 2022 assumption updates included an $186 million increase in long term care reserves, primarily driven by the unfavorable impact of increased cost of care inflation offset by favorable premium rate action assumptions. In addition, favorable assumption updates resulted in a $5 million reduction in structured settlement reserves.

Corporate & Other


	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
($ millions)	2023		2022		2023		2022
Insurance claims and policyholders' benefits	$	10	$	(13)	$	32	$	36
Interest expense	35		28		93		84
Net investment income	19		5		43		10
Core loss	(33)		(25)		(97)		(131)

Core loss increased $8 million for the third quarter of 2023 as compared with the prior year quarter driven by unfavorable net prior year loss reserve development partially offset by higher net investment income. The current quarter includes a $16 million after-tax charge related to unfavorable prior year development largely associated with legacy mass tort claims compared with no charge in the third quarter of 2022.

Net Investment Income


	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
	2023		2022		2023		2022
Fixed income securities and other	$	525	$	466	$	1,529	$	1,353
Limited partnership and common stock investments	28		(44)		124		(51)
Net investment income	$	553	$	422	$	1,653	$	1,302

Net investment income increased $131 million for the third quarter of 2023 as compared with the prior year quarter. The increase was driven by a $72 million increase in income from limited partnership and common stock investments and a $59 million increase in income from fixed income securities and other investments.

Stockholders' Equity

Stockholders’ equity of $8.6 billion was consistent with year-end 2022. Book value per share ex AOCI of $45.43 increased 7% from year-end 2022 adjusting for $2.46 of dividends per share. As of September 30, 2023, statutory capital and surplus for the Combined Continental Casualty Companies was $10.6 billion.

Accounting Standards Update

In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). The updated accounting guidance requires changes to the measurement and disclosure of long-duration contracts. For the Company, this includes the run-off long term care business in the Life & Group segment. The Company adopted the new guidance effective January 1, 2023, using the modified retrospective method applied as of the transition date of January 1, 2021. All prior period amounts have been adjusted to reflect application of the new guidance. While the requirements of the new guidance represent a material change from legacy accounting, the new guidance does not impact capital and surplus under statutory accounting practices, cash flows or the underlying economics of the business. Additional information regarding the Company’s adoption of ASU 2018-12 and the impact to historical financial results is contained in the Company's Q1 2023 Financial Supplement, furnished on Form 8-K, on May 1, 2023 with the Securities and Exchange Commission.

About the Company

CNA is one of the largest U.S. commercial property and casualty insurance companies. Backed by more than 125 years of experience, CNA provides a broad range of standard and specialized insurance products and services for businesses and professionals in the U.S., Canada and Europe. For more information, please visit CNA at www.cna.com.

Contact


Media:						Analysts:
Heather Giordano, 312-822-4319						Ralitza Todorova, 312-822-3834

Conference Call and Webcast/Presentation Information

A conference call for investors and the professional investment community will be held at 8:00 a.m. (CT) today. On the conference call will be Dino E. Robusto, Chairman and Chief Executive Officer of CNA Financial Corporation, Scott R. Lindquist, Executive Vice President and Chief Financial Officer of CNA Financial Corporation and other members of senior management. Participants can access the call by dialing (844) 481-2830 (USA Toll Free) or +1 (412) 317-1850 (International). The call will also be broadcast live on the internet and may be accessed from the Investor Relations page of the CNA website (www.cna.com). A presentation will be posted and available on the CNA website that 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. An online replay will be available on CNA's website following the call. Financial supplement information related to the results is available on the investor relations pages of the CNA website or by contacting investor.relations@cna.com.

Definition of Reported Segments

•Specialty provides management and professional liability and other coverages through property and casualty products and services using a network of brokers, independent agencies and managing general underwriters.

•Commercial works with a network of brokers and independent agents to market a broad range of property and casualty insurance products to all types of insureds targeting small business, construction, middle markets and other commercial customers.

•International underwrites property and casualty coverages on a global basis through a branch operation in Canada, a European business consisting of insurance companies based in the U.K and Luxembourg and Hardy, our Lloyd's Syndicate.

•Life & Group includes the individual and group run-off long term care businesses as well as structured settlement obligations not funded by annuities related to certain property and casualty claimants.

•Corporate & Other primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off, including CNA Re, asbestos and environmental pollution (A&EP), a legacy portfolio of excess workers' compensation (EWC) policies and certain legacy mass tort reserves.

Financial Measures

Management utilizes the following metrics in their evaluation of the Property & Casualty Operations.

These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).

•Loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums.

•Underlying loss ratio represents the loss ratio excluding catastrophe losses and development-related items.

•Expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums.

•Dividend ratio is the ratio of policyholders' dividends incurred to net earned premiums.

•Combined ratio is the sum of the loss, expense and dividend ratios.

•Underlying combined ratio is the sum of the underlying loss, expense and dividend ratios.

Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes.

Rate represents the average change in price on policies that renew excluding exposure change. For certain products within Small Business, where quantifiable, rate includes the influence of new business as well.

Exposure represents the measure of risk used in the pricing of the insurance product. The change in exposure represents the change in premium dollars on policies that renew as a result of the change in risk of the policy.

Retention represents the percentage of premium dollars renewed, excluding rate and exposure changes, in comparison to the expiring premium dollars from policies available to renew.

New business represents premiums from policies written with new customers and additional policies written with existing customers.

Gross written premiums ex. 3rd party captives represents gross written premiums excluding business which is ceded to third party captives, including business related to large warranty programs.

Development-related items represents net prior year loss reserve and premium development, and includes the effects of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.

Underwriting gain (loss) represents 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.

Underlying underwriting gain (loss) represents underwriting results excluding catastrophe losses and development-related items.

Statutory capital and surplus represents the excess of an insurance company's admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices. Statutory capital and surplus as of the current period is preliminary.

The Company'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.

Reconciliation of GAAP Measures to Non-GAAP Measures

This press release also contains financial measures that are not in accordance with GAAP. Management utilizes these financial measures to monitor the Company's insurance operations and investment portfolio. The Company believes the presentation of these measures provides investors with a better understanding of the significant factors that comprise the Company's operating performance. Reconciliations of these measures to the most comparable GAAP measures follow below.

Reconciliation of Net Income (Loss) to Core Income (Loss)

Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses. 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. Management monitors core income (loss) for each business segment to assess segment performance. Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure.


	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
($ millions)	2023		2022 (a)		2023		2022 (a)
Net income	$	258	$	(42)	$	838	$	443
Less: Net investment (losses) gains	(31)		(85)		(84)		(128)
Core income	$	289	$	43	$	922	$	571

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 Company's operating performance for the same reasons applicable to its underlying measure, core income (loss). Core income (loss) per diluted share is core income (loss) on a per diluted share basis.


	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
	2023		2022 (a)		2023		2022 (a)
Net income per diluted share	$	0.95	$	(0.15)	$	3.08	$	1.63
Less: Net investment (losses) gains	(0.11)		(0.31)		(0.31)		(0.47)
Core income per diluted share	$	1.06	$	0.16	$	3.39	$	2.10

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 Company's net worth primarily attributable to the Company's business operations. The Company 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.


	September 30, 2023		December 31, 2022 (a)
Book value per share	$	31.61	$	31.55
Less: Per share impact of AOCI	(13.82)		(13.28)
Book value per share excluding AOCI	$	45.43	$	44.83

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 Company is investing the portion of the Company's net worth that is primarily attributable to its business operations.


	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2023			2022 (a)			2023			2022 (a)
Annualized net income	$	1,033		$	(168)		$	1,118		$	591
Average stockholders' equity including AOCI (b)	8,644			8,505			8,555			9,554
Return on equity	11.9		%	(2.0)		%	13.1		%	6.2		%

Annualized core income	$	1,154		$	169		$	1,229		$	761
Average stockholders' equity excluding AOCI (b)	12,228			12,087			12,225			12,235
Core return on equity	9.4		%	1.4		%	10.1		%	6.2		%

(b)Average stockholders' equity is calculated using a simple average of the beginning and ending balances for the period.

For additional information, please refer to CNA's most recent 10-K on file with the Securities and Exchange Commission, as well as the financial supplement, available at www.cna.com.

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. 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. 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. Many of these risks and uncertainties cannot be controlled by CNA. For a detailed description of these risks and uncertainties, please refer to CNA’s filings with the Securities and Exchange Commission, available at www.cna.com.

Any forward-looking statements made in this press release are made by CNA as of the date of this press release. Further, CNA does not have any obligation to update or revise any forward-looking statement contained in this press release, even if CNA’s expectations or any related events, conditions or circumstances change.

Any descriptions of coverage under CNA 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. With regard to all such matters, the terms and provisions of relevant insurance policies are primary and controlling. In addition, please note that all coverages may not be available in all states.

“CNA" is a registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the "CNA" trademark in connection with insurance underwriting and claims activities. Copyright © 2023 CNA. All rights reserved.

# # #

CNA Financial Corporation

Supplemental Financial Information

September 30, 2023

This report is for informational purposes only and includes consolidated financial statements and financial exhibits that are unaudited. This report should be read in conjunction with documents filed with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Table of Contents


			Page
Consolidated Results
Statements of Operations			1
Components of Income (Loss), Per Share Data and Return on Equity			2

Selected Balance Sheet Data and Statements of Cash Flows Data			3

Results of Operations
Property & Casualty			4
Specialty			5
Commercial			6
International			7
Life & Group			8

Corporate & Other			9
Investment Information
Investment Summary - Consolidated			10
Investment Summary - Property & Casualty and Corporate & Other			11
Investment Summary - Life & Group			12
Investments - Fixed Maturity Securities by Credit Rating			13
Investments - Commercial Real Estate Exposure			14
Components of Net Investment Income			15
Net Investment Gains (Losses)			16
Other
Claim & Claim Adjustment Expense Reserve Rollforward			17
Life & Group Reserves Rollforward			18

Definitions and Presentation			19

Statements of Operations


Periods ended September 30	Three Months						Nine Months
(In millions)	2023		2022 (1)		Change		2023		2022 (1)		Change
Revenues:
Net earned premiums	$	2,406	$	2,221	8	%	$	7,001	$	6,435	9	%
Net investment income	553		422		31		1,653		1,302		27
Net investment (losses) gains	(38)		(96)				(105)		(166)
Non-insurance warranty revenue	407		399				1,221		1,173
Other revenues	8		11				22		24
Total revenues	3,336		2,957		13		9,792		8,768		12
Claims, Benefits and Expenses:
Insurance claims and policyholders' benefits (re-measurement gain (loss) of $(41), $(211), $(75) and $(205))	1,826		1,880				5,258		4,959
Amortization of deferred acquisition costs	426		383				1,208		1,101
Non-insurance warranty expense	386		371				1,154		1,092
Other operating expenses	338		346				1,021		1,001
Interest	34		28				93		84
Total claims, benefits and expenses	3,010		3,008		—		8,734		8,237		(6)
Income (loss) before income tax	326		(51)				1,058		531
Income tax (expense) benefit	(68)		9				(220)		(88)
Net income (loss)	$	258	$	(42)	N/M	%	$	838	$	443	89	%

(1) As of January 1, 2023, the Company adopted Accounting Standards Update (ASU) 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI), using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts have been adjusted to reflect application of the new guidance.

Components of Income (Loss), Per Share Data and Return on Equity


Periods ended September 30	Three Months						Nine Months
(In millions, except per share data)	2023			2022 (1)			2023			2022 (1)
Components of Income (Loss)
Core income (loss)	$	289		$	43		$	922		$	571
Net investment gains (losses)	(31)			(85)			(84)			(128)
Net income (loss)	$	258		$	(42)		$	838		$	443

Diluted Earnings (Loss) Per Common Share
Core income (loss)	$	1.06		$	0.16		$	3.39		$	2.10
Net investment gains (losses)	(0.11)			(0.31)			(0.31)			(0.47)
Diluted earnings (loss) per share	$	0.95		$	(0.15)		$	3.08		$	1.63

Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic	271.2			271.4			271.2			271.7
Diluted	272.3			272.3			272.2			272.6

Return on Equity
Net income (loss) (2)	11.9		%	(2.0)		%	13.1		%	6.2		%
Core income (loss) (3)	9.4			1.4			10.1			6.2

(1) As of January 1, 2023, the Company adopted LDTI using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts have been adjusted to reflect application of the new guidance.

(2) Annualized net income (loss) divided by the average stockholders' equity including accumulated other comprehensive income (loss) (AOCI) for the period. Average equity including AOCI is calculated using a simple average of the beginning and ending balances for the period.

(3) Annualized core income (loss) divided by the average stockholders' equity excluding AOCI for the period. Average equity excluding AOCI is calculated using a simple average of the beginning and ending balances for the period.

Selected Balance Sheet Data and Statements of Cash Flows Data


(In millions, except per share data)	September 30, 2023		December 31, 2022 (1)
Total investments	$	43,647	$	43,177
Reinsurance receivables, net of allowance for uncollectible receivables	5,447		5,416
Total assets	61,952		61,000
Insurance reserves:
Claim and claim adjustment expenses (2)	22,836		22,120
Unearned premiums	6,789		6,374
Future policy benefits (2)	12,654		13,480
Debt	3,273		2,781
Total liabilities	53,389		52,452
Accumulated other comprehensive income (loss) (3)	(3,741)		(3,598)
Total stockholders' equity	8,563		8,548

Book value per common share	$	31.61	$	31.55
Book value per common share excluding AOCI	$	45.43	$	44.83

Outstanding shares of common stock (in millions of shares)	270.9		270.9

Statutory capital and surplus - Combined Continental Casualty Companies (4)	$	10,640	$	10,572


Three Months Ended September 30	2023		2022
Net cash flows provided (used) by operating activities	$	828	$	737
Net cash flows provided (used) by investing activities	(679)		(641)
Net cash flows provided (used) by financing activities	(18)		(138)
Net cash flows provided (used) by operating, investing and financing activities	$	131	$	(42)


Nine Months Ended September 30	2023		2022
Net cash flows provided (used) by operating activities	$	1,765	$	1,990
Net cash flows provided (used) by investing activities	(1,537)		(1,072)
Net cash flows provided (used) by financing activities	(218)		(924)
Net cash flows provided (used) by operating, investing and financing activities	$	10	$	(6)

(2) In conjunction with the adoption of LDTI, at January 1, 2023, $3.0 billion of the long term care reserves for policyholders currently receiving benefits within the Life & Group segment were classified from Claim and claim adjustment expense to Future policy benefits. This change was applied retrospectively as of January 1, 2021.

(3) As of September 30, 2023 and December 31, 2022, AOCI included after-tax cumulative impacts of changes in discount rates used to measure long duration contracts of $637 million and $(41) million.

(4) Statutory capital and surplus as of September 30, 2023 is preliminary.

Property & Casualty - Results of Operations


Periods ended September 30	Three Months								Nine Months
(In millions)	2023			2022			Change		2023			2022			Change
Gross written premiums	$	3,424		$	3,365		2	%	$	10,953		$	10,497		4	%
Gross written premiums ex. 3rd party captives	2,595			2,430			7		8,305			7,560			10
Net written premiums	2,178			2,060			6		6,938			6,379			9

Net earned premiums	2,295			2,103			9		6,662			6,080			10
Net investment income	318			230			38		951			692			37
Non-insurance warranty revenue	407			399					1,221			1,173
Other revenues	8			12					22			25
Total operating revenues	3,028			2,744			10		8,856			7,970			11
Insurance claims and policyholders' benefits	1,473			1,368					4,228			3,783
Amortization of deferred acquisition costs	426			383					1,208			1,101
Non-insurance warranty expense	386			371					1,154			1,092
Other insurance related expenses	265			268					827			771
Other expenses	30			29					68			86
Total claims, benefits and expenses	2,580			2,419			(7)		7,485			6,833			(10)
Core income (loss) before income tax	448			325					1,371			1,137
Income tax (expense) benefit on core income (loss)	(97)			(65)					(300)			(239)
Core income (loss)	$	351		$	260		35	%	$	1,071		$	898		19	%

Other Performance Metrics
Underwriting gain (loss)	$	131		$	84		56	%	$	399		$	425		(6)	%

Loss & LAE ratio	63.9		%	64.6		%	0.7	pts	63.1		%	61.9		%	(1.2)	pts
Expense ratio	30.1			30.8			0.7		30.6			30.8			0.2
Dividend ratio	0.3			0.4			0.1		0.3			0.3			—
Combined ratio	94.3		%	95.8		%	1.5	pts	94.0		%	93.0		%	(1.0)	pts
Combined ratio excluding catastrophes and development	90.4		%	91.1		%	0.7	pts	90.8		%	91.1		%	0.3	pts

Net accident year catastrophe losses incurred	$	94		$	114				$	214		$	171
Effect on loss & LAE ratio	4.1		%	5.5		%	1.4	pts	3.2		%	2.8		%	(0.4)	pts

Net prior year development and other: (favorable) / unfavorable	$	(5)		$	(15)				$	4		$	(56)
Effect on loss & LAE ratio	(0.2)		%	(0.8)		%	(0.6)	pts	—		%	(0.9)		%	(0.9)	pts

Rate	5		%	5		%	—	pts	5		%	6		%	(1)	pts
Renewal premium change	6		%	8		%	(2)	pts	7		%	8		%	(1)	pts
Retention	84		%	86		%	(2)	pts	85		%	85		%	—	pts
New business	$	475		$	455		4	%	$	1,533		$	1,406		9	%

Specialty - Results of Operations


Periods ended September 30	Three Months								Nine Months
(In millions)	2023			2022			Change		2023			2022			Change
Gross written premiums	$	1,775		$	1,890		(6)	%	$	5,324		$	5,640		(6)	%
Gross written premiums ex. 3rd party captives	949			958			(1)		2,796			2,816			(1)
Net written premiums	825			840			(2)		2,438			2,443			—

Net earned premiums	829			810			2		2,438			2,376			3
Net investment income	136			102			33		407			305			33
Non-insurance warranty revenue	407			399					1,221			1,173
Other revenues	—			(1)					—			—
Total operating revenues	1,372			1,310			5		4,066			3,854			6
Insurance claims and policyholders' benefits	482			461					1,424			1,365
Amortization of deferred acquisition costs	175			169					508			488
Non-insurance warranty expense	386			371					1,154			1,092
Other insurance related expenses	89			88					269			250
Other expenses	13			15					39			40
Total claims, benefits and expenses	1,145			1,104			(4)		3,394			3,235			(5)
Core income (loss) before income tax	227			206					672			619
Income tax (expense) benefit on core income (loss)	(49)			(45)					(146)			(134)
Core income (loss)	$	178		$	161		11	%	$	526		$	485		8	%

Other Performance Metrics
Underwriting gain (loss)	$	83		$	92		(10)	%	$	237		$	273		(13)	%

Loss & LAE ratio	58.0		%	56.7		%	(1.3)	pts	58.2		%	57.3		%	(0.9)	pts
Expense ratio	31.8			31.7			(0.1)		31.9			31.0			(0.9)
Dividend ratio	0.3			0.3			—		0.2			0.2			—
Combined ratio	90.1		%	88.7		%	(1.4)	pts	90.3		%	88.5		%	(1.8)	pts
Combined ratio excluding catastrophes and development	90.7		%	90.4		%	(0.3)	pts	90.6		%	89.8		%	(0.8)	pts

Net accident year catastrophe losses incurred	$	—		$	1				$	—		$	2
Effect on loss & LAE ratio	—		%	0.2		%	0.2	pts	—		%	0.1		%	0.1	pts

Net prior year development and other: (favorable) / unfavorable	$	(5)		$	(15)				$	(7)		$	(35)
Effect on loss & LAE ratio	(0.6)		%	(1.9)		%	(1.3)	pts	(0.3)		%	(1.4)		%	(1.1)	pts

Rate	1		%	5		%	(4)	pts	1		%	7		%	(6)	pts
Renewal premium change	2		%	6		%	(4)	pts	2		%	8		%	(6)	pts
Retention	87		%	88		%	(1)	pts	88		%	86		%	2	pts
New business	$	121		$	130		(7)	%	$	349		$	407		(14)	%

Commercial - Results of Operations


Periods ended September 30	Three Months								Nine Months
(In millions)	2023			2022			Change		2023			2022			Change
Gross written premiums	$	1,343		$	1,187		13	%	$	4,504		$	3,824		18	%
Gross written premiums ex. 3rd party captives	1,340			1,184			13		4,384			3,711			18
Net written premiums	1,071			962			11		3,588			3,097			16

Net earned premiums	1,170			1,023			14		3,336			2,901			15
Net investment income	156			112			39		470			343			37
Other revenues	9			13					22			25
Total operating revenues	1,335			1,148			16		3,828			3,269			17
Insurance claims and policyholders' benefits	813			738					2,252			1,931
Amortization of deferred acquisition costs	188			163					532			467
Other insurance related expenses	156			145					456			409
Other expenses	11			3					27			21
Total claims, benefits and expenses	1,168			1,049			(11)		3,267			2,828			(16)
Core income (loss) before income tax	167			99					561			441
Income tax (expense) benefit on core income (loss)	(34)			(19)					(118)			(91)
Core income (loss)	$	133		$	80		66	%	$	443		$	350		27	%

Other Performance Metrics
Underwriting gain (loss)	$	13		$	(23)		157	%	$	96		$	94		2	%

Loss & LAE ratio	68.9		%	71.5		%	2.6	pts	67.0		%	66.0		%	(1.0)	pts
Expense ratio	29.5			29.9			0.4		29.6			30.1			0.5
Dividend ratio	0.5			0.5			—		0.5			0.5			—
Combined ratio	98.9		%	101.9		%	3.0	pts	97.1		%	96.6		%	(0.5)	pts
Combined ratio excluding catastrophes and development	91.5		%	91.9		%	0.4	pts	91.6		%	92.1		%	0.5	pts

Net accident year catastrophe losses incurred	$	87		$	103				$	190		$	148
Effect on loss & LAE ratio	7.4		%	10.0		%	2.6	pts	5.7		%	5.0		%	(0.7)	pts

Net prior year development and other: (favorable) / unfavorable	$	—		$	—				$	(4)		$	(16)
Effect on loss & LAE ratio	—		%	—		%	—	pts	(0.2)		%	(0.5)		%	(0.3)	pts

Rate	8		%	4		%	4	pts	8		%	5		%	3	pts
Renewal premium change	9		%	7		%	2	pts	10		%	8		%	2	pts
Retention	83		%	86		%	(3)	pts	85		%	86		%	(1)	pts
New business	$	292		$	246		19	%	$	945		$	754		25	%

International - Results of Operations


Periods ended September 30	Three Months								Nine Months
(In millions)	2023			2022			Change		2023			2022			Change
Gross written premiums	$	306		$	288		6	%	$	1,125		$	1,033		9	%
Net written premiums	282			258			9		912			839			9
Net earned premiums	296			270			10		888			803			11
Net investment income	26			16			63		74			44			68
Other revenues	(1)			—					—			—
Total operating revenues	321			286			12		962			847			14
Insurance claims and policyholders' benefits	178			169					552			487
Amortization of deferred acquisition costs	63			51					168			146
Other insurance related expenses	20			35					102			112
Other expenses	6			11					2			25
Total claims, benefits and expenses	267			266			—		824			770			(7)
Core income (loss) before income tax	54			20					138			77
Income tax (expense) benefit on core income (loss)	(14)			(1)					(36)			(14)
Core income (loss)	$	40		$	19		111	%	$	102		$	63		62	%

Other Performance Metrics
Underwriting gain (loss)	$	35		$	15		133	%	$	66		$	58		14	%

Loss & LAE ratio	60.2		%	62.7		%	2.5	pts	62.2		%	60.7		%	(1.5)	pts
Expense ratio	28.1			31.7			3.6		30.3			32.1			1.8
Dividend ratio	—			—			—		—			—			—
Combined ratio	88.3		%	94.4		%	6.1	pts	92.5		%	92.8		%	0.3	pts
Combined ratio excluding catastrophes and development	86.0		%	90.3		%	4.3	pts	88.1		%	90.7		%	2.6	pts

Net accident year catastrophe losses incurred	$	7		$	10				$	24		$	21
Effect on loss & LAE ratio	2.3		%	4.1		%	1.8	pts	2.7		%	2.7		%	—	pts

Net prior year development and other: (favorable) / unfavorable	$	—		$	—				$	15		$	(5)
Effect on loss & LAE ratio	—		%	—		%	—	pts	1.7		%	(0.6)		%	(2.3)	pts

Rate	2		%	6		%	(4)	pts	4		%	7		%	(3)	pts
Renewal premium change	7		%	15		%	(8)	pts	7		%	11		%	(4)	pts
Retention	84		%	83		%	1	pts	83		%	79		%	4	pts
New business	$	62		$	79		(22)	%	$	239		$	245		(2)	%

Life & Group - Results of Operations


Periods ended September 30	Three Months				Nine Months
(In millions)	2023		2022 (1)		2023		2022 (1)
Net earned premiums	$	112	$	118	$	340	$	356
Net investment income	216		187		659		600
Other revenues	—		—		—		—
Total operating revenues	328		305		999		956
Insurance claims and policyholders' benefits	343		525		998		1,140
Other insurance related expenses	29		29		89		89
Other expenses	(1)		2		—		7
Total claims, benefits and expenses	371		556		1,087		1,236
Core income (loss) before income tax	(43)		(251)		(88)		(280)
Income tax (expense) benefit on core income (loss)	14		59		36		84
Core income (loss)	$	(29)	$	(192)	$	(52)	$	(196)

Corporate & Other - Results of Operations


Periods ended September 30	Three Months				Nine Months
(In millions)	2023		2022		2023		2022
Net earned premiums	$	(1)	$	—	$	(1)	$	(1)
Net investment income	19		5		43		10
Other revenues	—		(1)		—		(1)
Total operating revenues	18		4		42		8
Insurance claims and policyholders' benefits	10		(13)		32		36
Other insurance related expenses	—		—		1		3
Other expenses	49		46		129		129


Total claims, benefits and expenses	59		33		162		168
Core income (loss) before income tax	(41)		(29)		(120)		(160)
Income tax (expense) benefit on core income (loss)	8		4		23		29
Core income (loss)	$	(33)	$	(25)	$	(97)	$	(131)

Investment Summary - Consolidated


	September 30, 2023				June 30, 2023				December 31, 2022
(In millions)	Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	22,513	$	(2,241)	$	22,611	$	(1,570)	$	21,429	$	(1,708)
States, municipalities and political subdivisions:
Tax-exempt	3,542		(295)		4,225		1		4,633		(45)
Taxable	3,492		(674)		3,585		(453)		3,684		(556)
Total states, municipalities and political subdivisions	7,034		(969)		7,810		(452)		8,317		(601)
Asset-backed:
RMBS	2,830		(595)		2,693		(440)		2,631		(442)
CMBS	1,554		(272)		1,583		(253)		1,635		(251)
Other ABS	3,118		(359)		3,248		(321)		2,927		(359)
Total asset-backed	7,502		(1,226)		7,524		(1,014)		7,193		(1,052)
U.S. Treasury and obligations of government-sponsored enterprises	149		(1)		127		(3)		110		(1)
Foreign government	658		(55)		651		(49)		575		(42)
Redeemable preferred stock	—		—		5		—		3		—
Total fixed maturity securities	37,856		(4,492)		38,728		(3,088)		37,627		(3,404)
Equities:
Common stock	213		—		205		—		185		—
Non-redeemable preferred stock	479		—		478		—		489		—
Total equities	692		—		683		—		674		—
Limited partnership investments:
Hedge funds	322		—		331		—		456		—
Private equity funds	1,752		—		1,689		—		1,470		—
Total limited partnership investments	2,074		—		2,020		—		1,926		—
Other invested assets	69		—		71		—		78		—
Mortgage loans	995		—		1,009		—		1,040		—
Short term investments	1,961		1		1,924		(1)		1,832		1
Total investments	$	43,647	$	(4,491)	$	44,435	$	(3,089)	$	43,177	$	(3,403)

Net receivable/(payable) on investment activity	$	(100)			$	41			$	8

Effective duration (in years)	6.3				6.5				6.6
Weighted average rating(1)	A				A				A

RMBS - Residential mortgage-backed securities

CMBS - Commercial mortgage-backed securities

Other ABS - Other asset-backed securities

(1) Obligations of the U.S. Government, U.S. Government agencies and U.S. Government-sponsored enterprises were classified as AAA for purposes of calculating the weighted average rating.

Investment Summary - Property & Casualty and Corporate & Other


	September 30, 2023				June 30, 2023				December 31, 2022
(In millions)	Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	13,814	$	(1,386)	$	13,715	$	(1,248)	$	13,165	$	(1,260)
States, municipalities and political subdivisions:
Tax-exempt	1,069		(281)		1,190		(190)		1,197		(211)
Taxable	1,938		(541)		1,954		(431)		1,986		(486)
Total states, municipalities and political subdivisions	3,007		(822)		3,144		(621)		3,183		(697)
Asset-backed:
RMBS	2,828		(595)		2,691		(440)		2,617		(442)
CMBS	1,525		(269)		1,554		(250)		1,606		(248)
Other ABS	2,566		(233)		2,648		(245)		2,374		(276)
Total asset-backed	6,919		(1,097)		6,893		(935)		6,597		(966)
U.S. Treasury and obligations of government-sponsored enterprises	148		(1)		126		(3)		109		(1)
Foreign government	632		(44)		623		(41)		546		(34)
Redeemable preferred stock	—		—		5		—		3		—
Total fixed maturity securities	24,520		(3,350)		24,506		(2,848)		23,603		(2,958)
Equities:
Common stock	213		—		205		—		185		—
Non-redeemable preferred stock	78		—		62		—		73		—
Total equities	291		—		267		—		258		—
Limited partnership investments:
Hedge funds	178		—		183		—		252		—
Private equity funds	970		—		935		—		814		—
Total limited partnership investments	1,148		—		1,118		—		1,066		—
Other invested assets	69		—		71		—		78		—
Mortgage loans	795		—		808		—		830		—
Short term investments	1,942		1		1,875		(1)		1,772		1
Total investments	$	28,765	$	(3,349)	$	28,645	$	(2,849)	$	27,607	$	(2,957)

Net receivable/(payable) on investment activity	$	(81)			$	37			$	(3)

Effective duration (in years)	4.6				4.6				4.7
Weighted average rating(1)	A				A				A

(1) Obligations of the U.S. Government, U.S. Government agencies and U.S. Government-sponsored enterprises were classified as AAA for purposes of calculating the weighted average rating.

Investment Summary - Life & Group


	September 30, 2023				June 30, 2023				December 31, 2022
(In millions)	Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	8,699	$	(855)	$	8,896	$	(322)	$	8,264	$	(448)
States, municipalities and political subdivisions:
Tax-exempt	2,473		(14)		3,035		191		3,436		166
Taxable	1,554		(133)		1,631		(22)		1,698		(70)
Total states, municipalities and political subdivisions	4,027		(147)		4,666		169		5,134		96
Asset-backed:
RMBS	2		—		2		—		14		—
CMBS	29		(3)		29		(3)		29		(3)
Other ABS	552		(126)		600		(76)		553		(83)
Total asset-backed	583		(129)		631		(79)		596		(86)
U.S. Treasury and obligations of government-sponsored enterprises	1		—		1		—		1		—
Foreign government	26		(11)		28		(8)		29		(8)
Redeemable preferred stock	—		—		—		—		—		—
Total fixed maturity securities	13,336		(1,142)		14,222		(240)		14,024		(446)
Equities:
Common stock	—		—		—		—		—		—
Non-redeemable preferred stock	401		—		416		—		416		—
Total equities	401		—		416		—		416		—
Limited partnership investments:
Hedge funds	144		—		148		—		204		—
Private equity funds	782		—		754		—		656		—
Total limited partnership investments	926		—		902		—		860		—
Other invested assets	—		—		—		—		—		—
Mortgage loans	200		—		201		—		210		—
Short term investments	19		—		49		—		60		—
Total investments	$	14,882	$	(1,142)	$	15,790	$	(240)	$	15,570	$	(446)

Net receivable/(payable) on investment activity	$	(19)			$	4			$	11

Effective duration (in years)	9.8				9.9				9.9
Weighted average rating(1)	A-				A-				A

(1) Obligations of the U.S. Government, U.S. Government agencies and U.S. Government-sponsored enterprises were classified as AAA for purposes of calculating the weighted average rating.

Investments - Fixed Maturity Securities by Credit Rating


September 30, 2023	U.S. Government, Government agencies and Government-sponsored enterprises					AAA					AA					A					BBB					Non-investment grade					Total
(In millions)	Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)
Corporate and other bonds	$	—		$	—	$	31		$	(1)	$	544		$	(62)	$	6,467		$	(525)	$	13,930		$	(1,506)	$	1,541		$	(147)	$	22,513		$	(2,241)
States, municipalities and political subdivisions	—			—		1,082			(117)		4,224			(677)		1,453			(99)		269			(76)		6			—		7,034			(969)
Asset-backed:
RMBS	2,523			(463)		286			(135)		4			—		7			—		—			—		10			3		2,830			(595)
CMBS	—			—		504			(39)		578			(120)		198			(37)		222			(52)		52			(24)		1,554			(272)
Other ABS	—			—		372			(40)		204			(64)		1,170			(94)		1,181			(139)		191			(22)		3,118			(359)
Total asset-backed	2,523			(463)		1,162			(214)		786			(184)		1,375			(131)		1,403			(191)		253			(43)		7,502			(1,226)
U.S. Treasury and obligations of government-sponsored enterprises	149			(1)		—			—		—			—		—			—		—			—		—			—		149			(1)
Foreign government	—			—		189			(8)		362			(27)		77			(17)		30			(3)		—			—		658			(55)
Redeemable preferred stock	—			—		—			—		—			—		—			—		—			—		—			—		—			—
Total fixed maturity securities	$	2,672		$	(464)	$	2,464		$	(340)	$	5,916		$	(950)	$	9,372		$	(772)	$	15,632		$	(1,776)	$	1,800		$	(190)	$	37,856		$	(4,492)

Percentage of total fixed maturity securities	7		%			6		%			16		%			25		%			41		%			5		%			100		%

Investments - Commercial Real Estate Exposure

Fixed Income and Direct Mortgage Loans


	September 30, 2023						September 30, 2023
(In millions)	Estimated Fair Value		Net Unrealized Gains (Losses)			(In millions)	Estimated Fair Value		Net Unrealized Gains (Losses)
Commercial mortgage-backed:						Corporate and other bonds - REITs:
Single asset, single borrower:						Retail	$	462	$	(53)
Office	$	293	$	(83)		Office	237		(32)
Retail	269		(37)			Industrial	83		(8)
Lodging	216		(23)			Other (1)	412		(41)
Industrial	91		(6)			Total corporate and other bonds - REITs (2)	$	1,194	$	(134)
Multifamily	58		(4)
Total single asset, single borrower	927		(153)
Conduits (multi property, multi borrower pools)	627		(119)
Total commercial mortgage-backed	$	1,554	$	(272)


	September 30, 2023						September 30, 2023
(In millions)	Estimated Fair Value		Net Unrealized Gains (Losses)			(In millions)	Estimated Fair Value		Net Unrealized Gains (Losses)
Commercial mortgage-backed:						Corporate and other bonds - REITs:
AAA	$	504	$	(39)		AA	$	10	$	(1)
AA	578		(120)			A	244		(18)
A	198		(37)			BBB	918		(112)
BBB	222		(52)			Non-investment grade	22		(3)
Non-investment grade	52		(24)			Total corporate and other bonds - REITs (2)	$	1,194	$	(134)
Total commercial mortgage-backed	$	1,554	$	(272)


	September 30, 2023
(In millions)	Carrying Value		Percentage of Total
Mortgage loans:
Retail	$	470	45		%
Office	246		24		%
Industrial	133		13		%
Other	181		18		%
Total mortgage loans	1,030		100		%	(1) Other includes a diversified mix of property type strategies including self-storage, healthcare and apartments.
Less: Allowance for expected credit losses	(35)
Total mortgage loans - net of allowance	$	995				(2) REITs - Real estate investment trusts

Components of Net Investment Income


Periods ended September 30	Consolidated
	Three Months						Nine Months
(In millions)	2023			2022			2023			2022
Taxable fixed income securities	$	457		$	410		$	1,331		$	1,163
Tax-exempt fixed income securities	43			55			138			194
Total fixed income securities	500			465			1,469			1,357
Common stock	—			(9)			16			(40)
Limited partnerships - hedge funds	(2)			1			19			(44)
Limited partnerships - private equity funds	30			(36)			89			33
Total limited partnership and common stock investments	28			(44)			124			(51)
Other, net of investment expense	25			1			60			(4)
Net investment income	$	553		$	422		$	1,653		$	1,302

Effective income yield for fixed income securities portfolio	4.7		%	4.4		%	4.6		%	4.3		%
Limited partnership and common stock return	1.3			(2.1)			5.8			(2.4)


	Property & Casualty and Corporate & Other
Periods ended September 30
	Three Months						Nine Months
(In millions)	2023			2022			2023			2022
Taxable fixed income securities	$	283		$	247		$	816		$	709
Tax-exempt fixed income securities	10			11			32			34
Total fixed income securities	293			258			848			743
Common stock	—			(9)			16			(40)
Limited partnerships - hedge funds	—			1			11			(24)
Limited partnerships - private equity funds	16			(20)			49			18
Total limited partnership and common stock investments	16			(28)			76			(46)
Other, net of investment expense	28			5			70			5
Net investment income	$	337		$	235		$	994		$	702

Effective income yield for fixed income securities portfolio	4.2		%	3.8		%	4.1		%	3.7		%


Periods ended September 30	Life & Group
	Three Months						Nine Months
(In millions)	2023			2022			2023			2022
Taxable fixed income securities	$	174		$	163		$	515		$	454
Tax-exempt fixed income securities	33			44			106			160
Total fixed income securities	207			207			621			614
Common stock	—			—			—			—
Limited partnerships - hedge funds	(2)			—			8			(20)
Limited partnerships - private equity funds	14			(16)			40			15
Total limited partnership and common stock investments	12			(16)			48			(5)
Other, net of investment expense	(3)			(4)			(10)			(9)
Net investment income	$	216		$	187		$	659		$	600

Effective income yield for fixed income securities portfolio	5.6		%	5.5		%	5.6		%	5.4		%

Net Investment Gains (Losses)


Periods ended September 30	Consolidated
	Three Months				Nine Months

(In millions)	2023		2022		2023		2022
Fixed maturity securities: (1)
Corporate and other bonds	$	(11)	$	(41)	$	(46)	$	(68)
States, municipalities and political subdivisions	(4)		6		3		28
Asset-backed	(22)		(17)		(43)		(29)
Total fixed maturity securities	(37)		(52)		(86)		(69)
Non-redeemable preferred stock	2		(2)		(9)		(111)
Derivatives, short term and other	2		(34)		1		22
Mortgage loans	(5)		(8)		(11)		(8)
Net investment gains (losses)	(38)		(96)		(105)		(166)
Income tax benefit (expense) on net investment gains (losses)	7		11		21		38
Net investment gains (losses), after tax	$	(31)	$	(85)	$	(84)	$	(128)

(1) Excludes the loss in the third quarter of 2022 on the assets supporting the funds withheld liability, which was reflected in the Derivatives, short term and other line

Derivatives, short term and other for the three months ended September 30, 2022 included a $35 million non-economic net loss related to the novation of a coinsurance agreement on the Company's legacy annuity business in the Life & Group segment and the associated funds withheld embedded derivative. The coinsurance agreement was novated in the fourth quarter of 2022.

Claim & Claim Adjustment Expense Reserve Rollforward


Three months ended September 30, 2023 (In millions)	Specialty		Commercial		International		P&C Operations		Life & Group (1)		Corporate & Other		Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	7,183	$	9,674	$	2,583	$	19,440	$	688	$	2,674	$	22,802
Ceded	1,465		1,026		405		2,896		100		2,316		5,312
Net	5,718		8,648		2,178		16,544		588		358		17,490

Net incurred claim & claim adjustment expenses	480		807		177		1,464		3		25		1,492
Net claim & claim adjustment expense payments	(427)		(644)		(138)		(1,209)		(13)		(18)		(1,240)
Foreign currency translation adjustment and other	(1)		—		(59)		(60)		(26)		(1)		(87)

Claim & claim adjustment expense reserves, end of period
Net	5,770		8,811		2,158		16,739		552		364		17,655
Ceded	1,320		1,091		414		2,825		97		2,259		5,181
Gross	$	7,090	$	9,902	$	2,572	$	19,564	$	649	$	2,623	$	22,836


Nine months ended September 30, 2023 (In millions)	Specialty		Commercial		International		P&C Operations		Life & Group (1)		Corporate & Other		Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	6,878	$	9,395	$	2,403	$	18,676	$	695	$	2,749	$	22,120
Ceded	1,315		965		400		2,680		101		2,410		5,191
Net	5,563		8,430		2,003		15,996		594		339		16,929

Net incurred claim & claim adjustment expenses	1,419		2,236		551		4,206		21		70		4,297
Net claim & claim adjustment expense payments	(1,212)		(1,856)		(392)		(3,460)		(37)		(44)		(3,541)
Foreign currency translation adjustment and other	—		1		(4)		(3)		(26)		(1)		(30)

Claim & claim adjustment expense reserves, end of period
Net	5,770		8,811		2,158		16,739		552		364		17,655
Ceded	1,320		1,091		414		2,825		97		2,259		5,181
Gross	$	7,090	$	9,902	$	2,572	$	19,564	$	649	$	2,623	$	22,836

(1) In conjunction with the adoption of LDTI, at January 1, 2023, the Company reclassified $3.0 billion of the long term care reserves for policyholders currently receiving benefits from Claim and claim adjustment expense to Future policy benefits. This change was applied retrospectively as of January 1, 2021.

Life & Group Reserves Rollforward



Three months ended September 30, 2023 (In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Beginning of period	$	588	$	13,666	$	14,254

Incurred claims and policyholders' benefits (1)	3		339		342
Benefit and expense payments	(13)		(316)		(329)
Change in discount rate assumptions and other (AOCI)	(26)		(1,035)		(1,061)

End of Period	$	552	$	12,654	$	13,206



Nine months ended September 30, 2023 (In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Beginning of period (2)	$	594	$	13,479	$	14,073

Incurred claims and policyholders' benefits (1)	21		977		998
Benefit and expense payments	(37)		(945)		(982)
Change in discount rate assumptions and other (AOCI)	(26)		(857)		(883)

End of Period	$	552	$	12,654	$	13,206

(1) Incurred claims and policyholders' benefits above does not agree to Net incurred claims and benefits as reflected in Note J to the Condensed Consolidated Financial Statements included under Part I, Item 1 of the Quarterly Report on Form 10-Q due to the timing of benefit and expense cash flows in determining Future Policy Benefit reserves, along with the allowable expenses in the reserve under LDTI guidance.

(2) In conjunction with the adoption of LDTI, at January 1, 2023, the Company reclassified $3.0 billion of the long term care reserves for policyholders currently receiving benefits from Claim and claim adjustment expense to Future policy benefits. This change was applied retrospectively as of January 1, 2021.

Definitions and Presentation

•Collectively, CNA Financial Corporation (CNAF) and its subsidiaries are referred to as CNA or the Company.

•P&C Operations includes Specialty, Commercial and International.

•Life & Group segment includes the individual and group run-off long term care businesses as well as structured settlement obligations not funded by annuities related to certain property and casualty claimants.

•Corporate & Other segment primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off, including CNA Re, asbestos and environmental pollution (A&EP), a legacy portfolio of excess workers' compensation (EWC) policies and certain legacy mass tort reserves.

•Management uses the core income (loss) financial measure to monitor the Company’s operations for the Specialty, Commercial and International segments. Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses. 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. Management monitors core income (loss) for each business segment to assess segment performance. Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure and management believes some investors may find this measure useful to evaluate the Company's primary operations. Please refer to Note O to the Consolidated Financial Statements within the December 31, 2022 Form 10-K for further discussion regarding how the Company manages its business.

•This financial supplement may also reference or contain financial measures utilized to monitor the Company's investment portfolio that are not in accordance with GAAP. The Company'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.

•For reconciliations of non-GAAP measures to the most comparable GAAP measures and other information, please refer herein and/or to CNA's most recent 10-K on file with the Securities and Exchange Commission, as well as the press release, available at www.cna.com.

•In evaluating the results of the Specialty, Commercial and International segments, management uses the loss ratio, the expense ratio, the dividend ratio and the combined ratio. These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America. The loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums. The expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums. The dividend ratio is the ratio of policyholders' dividends incurred to net earned premiums. The combined ratio is the sum of the loss, expense and dividend ratios. In addition, management also utilizes renewal premium change, rate, retention and new business in evaluating operating trends. Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes. Rate represents the average change in price on policies that renew excluding exposure change. For certain products within Small Business, where quantifiable, rate includes the influence of new business as well. Exposure represents the measure of risk used in the pricing of the insurance product. The change in exposure represents the change in premium dollars on policies that renew as a result of the change in risk of the policy. Retention represents the percentage of premium dollars renewed, excluding rate and exposure changes, in comparison to the expiring premium dollars from policies available to renew. New business represents premiums from policies written with new customers and additional policies written with existing customers.

•Management uses underwriting gain (loss), calculated using GAAP financial results, to monitor insurance operations of our Specialty, Commercial and International segments. Underwriting gain (loss) is pretax and calculated as net earned premiums less total insurance expenses, which includes insurance claims and policyholders' benefits, amortization of deferred acquisition costs and other insurance related expenses.

•Gross written premiums ex. 3rd party captives represents gross written premiums excluding business which is ceded to third party captives, including business related to large warranty programs.

•Statutory capital and surplus represents the excess of an insurance company's admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices.

•Pretax net prior year development and other represents net prior year loss reserve and premium development, and includes the effects of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.

•Net investment income from fixed income securities, as presented, includes both fixed maturity securities and non-redeemable preferred stock.

•Accounting Standards Update: In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts. The updated accounting guidance requires changes to the measurement and disclosure of long-duration contracts. For the Company, this includes the run-off long term care business in the Life & Group segment. The Company adopted the new guidance effective January 1, 2023, using the modified retrospective method applied as of the transition date of January 1, 2021. All prior period amounts have been adjusted to reflect application of the new guidance. While the requirements of the new guidance represent a material change from legacy accounting, the new guidance does not impact capital and surplus under statutory accounting practices, cash flows or the underlying economics of the business. Additional information regarding the Company’s adoption of ASU 2018-12 and the impact to historical financial results is contained in the Company's Q1 2023 Financial Supplement, furnished on Form 8-K, on May 1, 2023 with the Securities and Exchange Commission.

•Certain immaterial differences are due to rounding.

•N/M = Not Meaningful

Cover Page Cover Page	Oct. 30, 2023
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Oct. 30, 2023
Entity Registrant Name	CNA FINANCIAL CORPORATION
Entity Incorporation, State or Country Code	DE
Entity File Number	1-5823
Entity Tax Identification Number	36-6169860
Entity Address, Address Line One	151 N. Franklin
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60606
City Area Code	312
Local Phone Number	822-5000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0000021175
Amendment Flag	false
New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, Par value $2.50
Trading Symbol	"CNA"
Security Exchange Name	NYSE
Chicago Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, Par value $2.50
Trading Symbol	"CNA"
Security Exchange Name	CHX