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) July 31, 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 July 31, 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 second 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 July 31, 2023, providing information on the second quarter 2023 results of operations.

99.2						CNA Financial Corporation financial supplement, posted on its website July 31, 2023, providing supplemental financial information on the second 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: July 31, 2023	By	/s/ Scott R. Lindquist
		(Signature)
		Scott R. Lindquist Executive Vice President and Chief Financial Officer

FOR IMMEDIATE RELEASE

CNA FINANCIAL ANNOUNCES SECOND QUARTER 2023

NET INCOME OF $1.04 PER SHARE AND CORE INCOME OF $1.13 PER SHARE

•Net income up 49% to $283 million versus $190 million in the prior year quarter; core income up 34% to $308 million versus $230 million in the prior year quarter.

•P&C core income of $374 million versus $317 million in the prior year quarter, reflects higher investment income and record high pretax underlying underwriting income, partially offset by higher catastrophe losses and lower favorable net prior year development.

•Corporate & Other core loss of $46 million versus $78 million in the prior year quarter.

•Net investment income up 33% to $575 million pretax, includes an $83 million increase from limited partnerships and common stock to $68 million and a $60 million increase from fixed income securities and other investments to $507 million.

•P&C combined ratio of 93.8%, compared with 91.0% in the prior year quarter, including 3.1 points of catastrophe loss impact compared with 1.8 points in the prior year quarter. The underlying combined ratio was 91.1% compared with 90.8%, in the prior year quarter. The underlying loss ratio was 59.9% and the expense ratio was 30.9%.

•P&C segments, excluding third party captives, generated gross written premium growth of 12% and net written premium growth of 9%. Excluding currency fluctuations, gross written premiums grew 12% and net written premiums grew 10%. P&C renewal premium change of +7%, with written rate of +5% and exposure change of +2%.

•Book value per share of $32.22; book value per share excluding AOCI of $44.86, a 5% increase from year-end 2022 adjusting for $2.04 of dividends per share.

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

CHICAGO, July 31, 2023 --- CNA Financial Corporation (NYSE: CNA) today announced second quarter 2023 net income of $283 million, or $1.04 per share, versus $190 million, or $0.69 per share, in the prior year quarter. Net investment losses for the quarter were $25 million compared to $40 million in the prior year quarter. Core income for the quarter was up 34% to $308 million, or $1.13 per share, versus $230 million, or $0.84 per share, in the prior year quarter.

Our Property & Casualty segments produced core income of $374 million for the second quarter of 2023, an increase of $57 million compared to the prior year quarter driven by higher investment income and record high pretax underlying underwriting income, partially offset by higher catastrophe losses and lower favorable net prior year development. P&C segments, excluding third party captives, generated gross written premium growth of 12% and net written premium growth of 9% for the second quarter of 2023 driven by renewal premium change of +7%, including rate of +5%, exposure change of +2% and new business growth of 11%. Excluding currency fluctuations, gross written premiums grew 12% and net written premiums grew 10%.

Our Life & Group segment produced a core loss of $20 million for the second quarter of 2023 versus $9 million in the prior year quarter primarily due to long term care policy buyouts.

Our Corporate & Other segment produced a core loss of $46 million for the second quarter of 2023 versus $78 million in the prior year quarter driven by lower net prior year loss reserve development and higher net investment income.

CNA Financial declared a quarterly dividend of $0.42 per share, payable August 31, 2023 to stockholders of record on August 14, 2023.


	Results for the Three Months Ended June 30				Results for the Six Months Ended June 30
($ millions, except per share data)	2023		2022 (a)		2023		2022 (a)
Net income	$	283	$	190	$	580	$	485
Core income (b)	308		230		633		528

Net income per diluted share	$	1.04	$	0.69	$	2.13	$	1.78
Core income per diluted share	1.13		0.84		2.33		1.94


	June 30, 2023		December 31, 2022 (a)
Book value per share	$	32.22	$	31.55
Book value per share excluding AOCI		44.86		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 produced strong results in the quarter with double-digit top-line growth and continued excellent profitability. Core income increased by 34% in the quarter and net investment income was up 33% with significant increases in LPs, common stock, and the fixed income portfolio.

The all-in combined ratio was very strong at 93.8%, with pretax catastrophe losses of $68 million, or 3.1 points of the combined ratio, and 0.4 points of favorable prior period development. The P&C underlying combined ratio of 91.1% generated a record $200 million of pretax P&C underlying underwriting gain.

In the quarter, we achieved very strong production performance with 12% growth in gross written premium ex captives and 9% growth in net written premium. Renewal premium change was 7% for P&C overall and 11% in Commercial, which was up 2 points from the first quarter. Retention remained consistently high at 86% and new business was up 11%, similar to the first quarter.

With the strong top-line and bottom-line results in the first half of the year and improved investment returns, we are optimistic about our opportunities through the remainder of 2023," said Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.

Property & Casualty Operations


	Results for the Three Months Ended June 30						Results for the Six Months Ended June 30
($ millions)	2023			2022			2023			2022
Gross written premiums ex. 3rd party captives	$	2,986		$	2,676		$	5,710		$	5,130
GWP ex. 3rd party captives change (% year over year)	12		%				11		%
Net written premiums	$	2,513		$	2,296		$	4,760		$	4,319
NWP change (% year over year)	9		%				10		%
Net earned premiums	$	2,234		$	2,037		$	4,367		$	3,977
NEP change (% year over year)	10		%				10		%
Underwriting gain	$	138		$	185		$	268		$	341
Net investment income	$	332		$	227		$	633		$	462
Core income	$	374		$	317		$	720		$	638

Loss ratio excluding catastrophes and development	59.9		%	60.0		%	59.9		%	60.0		%
Effect of catastrophe impacts	3.1			1.8			2.7			1.4
Effect of development-related items	(0.4)			(1.6)			0.2			(1.0)
Loss ratio	62.6		%	60.2		%	62.8		%	60.4		%

Expense ratio	30.9		%	30.5		%	30.8		%	30.7		%

Combined ratio	93.8		%	91.0		%	93.9		%	91.4		%
Combined ratio excluding catastrophes and development	91.1		%	90.8		%	91.0		%	91.0		%

•The underlying combined ratio increased 0.3 points as compared with the prior year quarter. The expense ratio increased 0.4 points driven by higher employee related costs. The underlying loss ratio was largely consistent with the prior year quarter.

•The combined ratio increased 2.8 points as compared with the prior year quarter. Catastrophe losses were $68 million, or 3.1 points of the loss ratio in the quarter compared with $37 million, or 1.8 points of the loss ratio, for the prior year quarter. Favorable net prior year development improved the loss ratio by 0.4 points in the current quarter as compared with 1.6 points of improvement in the prior year quarter.

Business Operating Highlights

Specialty


	Results for the Three Months Ended June 30						Results for the Six Months Ended June 30
($ millions)	2023			2022			2023			2022
Gross written premiums ex. 3rd party captives	$	961		$	973		$	1,847		$	1,858
GWP ex. 3rd party captives change (% year over year)	(1)		%				(1)		%
Net written premiums	$	825		$	832		$	1,613		$	1,603
NWP change (% year over year)	(1)		%				1		%
Net earned premiums	$	812		$	794		$	1,609		$	1,566
NEP change (% year over year)	2		%				3		%


Underwriting gain	$	74		$	93		$	154		$	181

Loss ratio excluding catastrophes and development	58.6		%	58.6		%	58.5		%	58.7		%
Effect of catastrophe impacts	—			0.1			—			0.1
Effect of development-related items	(0.3)			(1.2)			(0.2)			(1.3)
Loss ratio	58.3		%	57.5		%	58.3		%	57.5		%

Expense ratio	32.4		%	30.4		%	31.9		%	30.7		%

Combined ratio	90.9		%	88.1		%	90.4		%	88.4		%
Combined ratio excluding catastrophes and development	91.2		%	89.2		%	90.6		%	89.6		%

•The underlying combined ratio increased 2.0 points as compared with the prior year quarter due to an increase in the expense ratio driven by higher employee related and acquisition costs.

•The combined ratio increased 2.8 points as compared with the prior year quarter. Favorable net prior year development improved the loss ratio by 0.3 points in the quarter compared with 1.2 points of improvement in the prior year quarter.

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

Commercial


	Results for the Three Months Ended June 30						Results for the Six Months Ended June 30
($ millions)	2023			2022			2023			2022
Gross written premiums ex. 3rd party captives	$	1,604		$	1,321		$	3,044		$	2,527
GWP ex. 3rd party captives change (% year over year)	21		%				20		%
Net written premiums	$	1,329		$	1,134		$	2,517		$	2,135
NWP change (% year over year)	17		%				18		%
Net earned premiums	$	1,120		$	974		$	2,166		$	1,878
NEP change (% year over year)	15		%				15		%


Underwriting gain	$	42		$	69		$	83		$	117

Loss ratio excluding catastrophes and development	61.5		%	61.5		%	61.5		%	61.5		%
Effect of catastrophe impacts	5.2			3.0			4.7			2.4
Effect of development-related items	(0.5)			(1.8)			(0.3)			(0.9)
Loss ratio	66.2		%	62.7		%	65.9		%	63.0		%

Expense ratio	29.6		%	30.0		%	29.8		%	30.3		%

Combined ratio	96.3		%	93.2		%	96.2		%	93.8		%
Combined ratio excluding catastrophes and development	91.6		%	92.0		%	91.8		%	92.3		%

•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 15%.

•The combined ratio increased 3.1 points as compared with the prior year quarter. Catastrophe losses were $59 million, or 5.2 points of the loss ratio in the quarter compared with $29 million, or 3.0 points of the loss ratio, for the prior year quarter. Favorable net prior year development improved the loss ratio by 0.5 points in the quarter compared with 1.8 points of improvement in the prior year quarter.

•Gross written premiums, excluding third party captives grew 21% and net written premiums grew 17% for the second quarter of 2023.

International


	Results for the Three Months Ended June 30						Results for the Six Months Ended June 30
($ millions)	2023			2022			2023			2022
Gross written premiums	$	421		$	382		$	819		$	745
GWP change (% year over year)	10		%				10		%
Net written premiums	$	359		$	330		$	630		$	581
NWP change (% year over year)	9		%				8		%
Net earned premiums	$	302		$	269		$	592		$	533
NEP change (% year over year)	12		%				11		%


Underwriting gain	$	22		$	23		$	31		$	43

Loss ratio excluding catastrophes and development	57.9		%	58.5		%	57.7		%	58.6		%
Effect of catastrophe impacts	3.1			2.8			2.9			2.0
Effect of development-related items	—			(1.8)			2.5			(1.0)
Loss ratio	61.0		%	59.5		%	63.1		%	59.6		%

Expense ratio	31.2		%	32.1		%	31.5		%	32.4		%

Combined ratio	92.2		%	91.6		%	94.6		%	92.0		%
Combined ratio excluding catastrophes and development	89.1		%	90.6		%	89.2		%	91.0		%

•The underlying combined ratio improved 1.5 points as compared with the prior year quarter. The expense ratio improved 0.9 points driven by net earned premium growth of 12% and lower acquisition costs. The underlying loss ratio improved 0.6 points as compared with the prior year quarter.

•The combined ratio increased 0.6 points as compared with the prior year quarter. Catastrophe losses were $9 million, or 3.1 points of the loss ratio in the quarter compared with $7 million, or 2.8 points of the loss ratio, for the prior year quarter. There was no net prior year development in the current quarter compared with 1.8 points of favorable development improving the loss ratio in the prior year quarter.

•Excluding currency fluctuations, gross written premiums grew 12% and net written premiums grew 10% for the second quarter of 2023.

Life & Group


	Results for the Three Months Ended June 30				Results for the Six Months Ended June 30
($ millions)	2023		2022 (a)		2023		2022 (a)
Net earned premiums	$	113	$	118	$	228	$	238
Claims, benefits and expenses	375		342		716		680

Net investment income	229		201		443		413
Core loss	(20)		(9)		(23)		(4)

(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.

Excluding the impacts of long term care policy buyouts, year to date 2023 underwriting results are generally in line with expectations.

Corporate & Other


	Results for the Three Months Ended June 30				Results for the Six Months Ended June 30
($ millions)	2023		2022		2023		2022
Insurance claims and policyholders' benefits	$	29	$	57	$	22	$	49
Interest expense	30		28		58		56
Net investment income	14		4		24		5
Core loss	(46)		(78)		(64)		(106)

Core loss decreased $32 million for the second quarter of 2023 as compared with the prior year quarter driven by lower net prior year loss reserve development and higher net investment income. The current quarter includes a $28 million after-tax charge related to unfavorable prior year development largely associated with legacy mass tort claims compared with a $51 million after-tax charge in the second quarter of 2022.

Net Investment Income


	Results for the Three Months Ended June 30				Results for the Six Months Ended June 30
	2023		2022		2023		2022
Fixed income securities and other	$	507	$	447	$	1,004	$	887
Limited partnership and common stock investments	68		(15)		96		(7)
Net investment income	$	575	$	432	$	1,100	$	880

Net investment income increased $143 million for the second quarter of 2023 as compared with the prior year quarter. The increase was driven by an $83 million increase in income from limited partnership and common stock investments and a $60 million increase in income from fixed income securities and other investments.

Stockholders' Equity

Stockholders’ equity of $8.7 billion improved 2% from year-end 2022 primarily due to net income partially offset by dividends paid to stockholders.

Book value per share ex AOCI of $44.86 increased 5% from year-end 2022 adjusting for $2.04 of dividends per share.

As of June 30, 2023, statutory capital and surplus for the Combined Continental Casualty Companies was $10.5 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:
Jennifer Vaupel, 847-224-2464						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 June 30				Results for the Six Months Ended June 30
($ millions)	2023		2022 (a)		2023		2022 (a)
Net income	$	283	$	190	$	580	$	485
Less: Net investment (losses) gains	(25)		(40)		(53)		(43)
Core income	$	308	$	230	$	633	$	528

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 June 30				Results for the Six Months Ended June 30
	2023		2022 (a)		2023		2022 (a)
Net income per diluted share	$	1.04	$	0.69	$	2.13	$	1.78
Less: Net investment (losses) gains	(0.09)		(0.15)		(0.20)		(0.16)
Core income per diluted share	$	1.13	$	0.84	$	2.33	$	1.94

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.


	June 30, 2023		December 31, 2022 (a)
Book value per share	$	32.22	$	31.55
Less: Per share impact of AOCI	(12.64)		(13.28)
Book value per share excluding AOCI	$	44.86	$	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 June 30						Results for the Six Months Ended June 30
($ millions)	2023			2022 (a)			2023			2022 (a)
Annualized net income	$	1,132		$	762		$	1,160		$	970
Average stockholders' equity including AOCI (b)	8,696			9,352			8,637			10,055
Return on equity	13.0		%	8.1		%	13.4		%	9.6		%

Annualized core income	$	1,233		$	924		$	1,266		$	1,058
Average stockholders' equity excluding AOCI (b)	12,063			12,122			12,148			12,316
Core return on equity	10.2		%	7.6		%	10.4		%	8.6		%

(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

June 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 June 30	Three Months						Six Months
(In millions)	2023		2022 (1)		Change		2023		2022 (1)		Change
Revenues:
Net earned premiums	$	2,347	$	2,155	9	%	$	4,595	$	4,214	9	%
Net investment income	575		432		33		1,100		880		25
Net investment (losses) gains	(32)		(59)				(67)		(70)
Non-insurance warranty revenue	407		392				814		774
Other revenues	7		6				14		13
Total revenues	3,304		2,926		13		6,456		5,811		11
Claims, Benefits and Expenses:
Insurance claims and policyholders' benefits (re-measurement gain (loss) of $(33), $1, $(34) and $6)	1,779		1,601				3,432		3,079
Amortization of deferred acquisition costs	403		374				782		718
Non-insurance warranty expense	384		367				768		721
Other operating expenses	346		329				683		655
Interest	31		28				59		56
Total claims, benefits and expenses	2,943		2,699		(9)		5,724		5,229		(9)
Income (loss) before income tax	361		227				732		582
Income tax (expense) benefit	(78)		(37)				(152)		(97)
Net income (loss)	$	283	$	190	49	%	$	580	$	485	20	%

(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 June 30	Three Months						Six Months
(In millions, except per share data)	2023			2022 (1)			2023			2022 (1)
Components of Income (Loss)
Core income (loss)	$	308		$	230		$	633		$	528
Net investment gains (losses)	(25)			(40)			(53)			(43)
Net income (loss)	$	283		$	190		$	580		$	485

Diluted Earnings (Loss) Per Common Share
Core income (loss)	$	1.13		$	0.84		$	2.33		$	1.94
Net investment gains (losses)	(0.09)			(0.15)			(0.20)			(0.16)
Diluted earnings (loss) per share	$	1.04		$	0.69		$	2.13		$	1.78

Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic	271.2			271.7			271.2			271.8
Diluted	272.0			272.6			272.1			272.7

Return on Equity
Net income (loss) (2)	13.0		%	8.1		%	13.4		%	9.7		%
Core income (loss) (3)	10.2			7.6			10.4			8.6

(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)	June 30, 2023		December 31, 2022 (1)
Total investments	$	44,435	$	43,177
Reinsurance receivables, net of allowance for uncollectible receivables	5,581		5,416
Total assets	63,088		61,000
Insurance reserves:
Claim and claim adjustment expenses (2)	22,802		22,120
Unearned premiums	6,978		6,374
Future policy benefits (2)	13,666		13,480
Debt	3,176		2,781
Total liabilities	54,362		52,452
Accumulated other comprehensive income (loss) (3)	(3,425)		(3,598)
Total stockholders' equity	8,726		8,548

Book value per common share	$	32.22	$	31.55
Book value per common share excluding AOCI	$	44.86	$	44.83

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

Statutory capital and surplus - Combined Continental Casualty Companies (4)	$	10,520	$	10,572


Three Months Ended June 30	2023		2022
Net cash flows provided (used) by operating activities	$	501	$	608
Net cash flows provided (used) by investing activities	(909)		(302)
Net cash flows provided (used) by financing activities	280		(98)
Net cash flows provided (used) by operating, investing and financing activities	$	(128)	$	208


Six Months Ended June 30	2023		2022
Net cash flows provided (used) by operating activities	$	937	$	1,253
Net cash flows provided (used) by investing activities	(858)		(431)
Net cash flows provided (used) by financing activities	(200)		(786)
Net cash flows provided (used) by operating, investing and financing activities	$	(121)	$	36

(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 June 30, 2023 and December 31, 2022, AOCI included after-tax cumulative impacts of changes in discount rates used to measure long duration contracts of $(181) million and $(41) million.

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

Property & Casualty - Results of Operations


Periods ended June 30	Three Months								Six Months
(In millions)	2023			2022			Change		2023			2022			Change
Gross written premiums	$	3,909		$	3,715		5	%	$	7,529		$	7,132		6	%
Gross written premiums ex. 3rd party captives	2,986			2,676			12		5,710			5,130			11
Net written premiums	2,513			2,296			9		4,760			4,319			10

Net earned premiums	2,234			2,037			10		4,367			3,977			10
Net investment income	332			227			46		633			462			37
Non-insurance warranty revenue	407			392					814			774
Other revenues	7			5					14			13
Total operating revenues	2,980			2,661			12		5,828			5,226			12
Insurance claims and policyholders' benefits	1,406			1,233					2,755			2,415
Amortization of deferred acquisition costs	403			374					782			718
Non-insurance warranty expense	384			367					768			721
Other insurance related expenses	287			245					562			503
Other expenses	17			36					38			57
Total claims, benefits and expenses	2,497			2,255			(11)		4,905			4,414			(11)
Core income (loss) before income tax	483			406					923			812
Income tax (expense) benefit on core income (loss)	(109)			(89)					(203)			(174)
Core income (loss)	$	374		$	317		18	%	$	720		$	638		13	%

Other Performance Metrics
Underwriting gain (loss)	$	138		$	185		(25)	%	$	268		$	341		(21)	%

Loss & LAE ratio	62.6		%	60.2		%	(2.4)	pts	62.8		%	60.4		%	(2.4)	pts
Expense ratio	30.9			30.5			(0.4)		30.8			30.7			(0.1)
Dividend ratio	0.3			0.3			—		0.3			0.3			—
Combined ratio	93.8		%	91.0		%	(2.8)	pts	93.9		%	91.4		%	(2.5)	pts
Combined ratio excluding catastrophes and development	91.1		%	90.8		%	(0.3)	pts	91.0		%	91.0		%	—	pts

Net accident year catastrophe losses incurred	$	68		$	37				$	120		$	57
Effect on loss & LAE ratio	3.1		%	1.8		%	(1.3)	pts	2.7		%	1.4		%	(1.3)	pts

Net prior year development and other: (favorable) / unfavorable	$	(6)		$	(31)				$	9		$	(41)
Effect on loss & LAE ratio	(0.4)		%	(1.6)		%	(1.2)	pts	0.2		%	(1.0)		%	(1.2)	pts

Rate	5		%	6		%	(1)	pts	5		%	6		%	(1)	pts
Renewal premium change	7		%	8		%	(1)	pts	7		%	9		%	(2)	pts
Retention	86		%	86		%	—	pts	86		%	84		%	2	pts
New business	$	555		$	500		11	%	$	1,058		$	951		11	%

Specialty - Results of Operations


Periods ended June 30	Three Months								Six Months
(In millions)	2023			2022			Change		2023			2022			Change
Gross written premiums	$	1,769		$	1,904		(7)	%	$	3,549		$	3,750		(5)	%
Gross written premiums ex. 3rd party captives	961			973			(1)		1,847			1,858			(1)
Net written premiums	825			832			(1)		1,613			1,603			1

Net earned premiums	812			794			2		1,609			1,566			3
Net investment income	142			100			42		271			203			33
Non-insurance warranty revenue	407			392					814			774
Other revenues	—			—					—			1
Total operating revenues	1,361			1,286			6		2,694			2,544			6
Insurance claims and policyholders' benefits	476			458					942			904
Amortization of deferred acquisition costs	168			162					333			319
Non-insurance warranty expense	384			367					768			721
Other insurance related expenses	94			81					180			162
Other expenses	12			12					26			25
Total claims, benefits and expenses	1,134			1,080			(5)		2,249			2,131			(6)
Core income (loss) before income tax	227			206					445			413
Income tax (expense) benefit on core income (loss)	(50)			(45)					(97)			(89)
Core income (loss)	$	177		$	161		10	%	$	348		$	324		7	%

Other Performance Metrics
Underwriting gain (loss)	$	74		$	93		(20)	%	$	154		$	181		(15)	%

Loss & LAE ratio	58.3		%	57.5		%	(0.8)	pts	58.3		%	57.5		%	(0.8)	pts
Expense ratio	32.4			30.4			(2.0)		31.9			30.7			(1.2)
Dividend ratio	0.2			0.2			—		0.2			0.2			—
Combined ratio	90.9		%	88.1		%	(2.8)	pts	90.4		%	88.4		%	(2.0)	pts
Combined ratio excluding catastrophes and development	91.2		%	89.2		%	(2.0)	pts	90.6		%	89.6		%	(1.0)	pts

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

Net prior year development and other: (favorable) / unfavorable	$	(2)		$	(10)				$	(2)		$	(20)
Effect on loss & LAE ratio	(0.3)		%	(1.2)		%	(0.9)	pts	(0.2)		%	(1.3)		%	(1.1)	pts

Rate	(1)		%	7		%	(8)	pts	—		%	8		%	(8)	pts
Renewal premium change	—		%	9		%	(9)	pts	2		%	9		%	(7)	pts
Retention	89		%	85		%	4	pts	89		%	85		%	4	pts
New business	$	120		$	132		(9)	%	$	228		$	277		(18)	%

Commercial - Results of Operations


Periods ended June 30	Three Months								Six Months
(In millions)	2023			2022			Change		2023			2022			Change
Gross written premiums	$	1,719		$	1,429		20	%	$	3,161		$	2,637		20	%
Gross written premiums ex. 3rd party captives	1,604			1,321			21		3,044			2,527			20
Net written premiums	1,329			1,134			17		2,517			2,135			18

Net earned premiums	1,120			974			15		2,166			1,878			15
Net investment income	165			113			46		314			231			36
Other revenues	6			4					13			12
Total operating revenues	1,291			1,091			18		2,493			2,121			18
Insurance claims and policyholders' benefits	745			615					1,439			1,193
Amortization of deferred acquisition costs	175			156					344			304
Other insurance related expenses	158			134					300			264
Other expenses	10			11					16			18
Total claims, benefits and expenses	1,088			916			(19)		2,099			1,779			(18)
Core income (loss) before income tax	203			175					394			342
Income tax (expense) benefit on core income (loss)	(44)			(37)					(84)			(72)
Core income (loss)	$	159		$	138		15	%	$	310		$	270		15	%

Other Performance Metrics
Underwriting gain (loss)	$	42		$	69		(39)	%	$	83		$	117		(29)	%

Loss & LAE ratio	66.2		%	62.7		%	(3.5)	pts	65.9		%	63.0		%	(2.9)	pts
Expense ratio	29.6			30.0			0.4		29.8			30.3			0.5
Dividend ratio	0.5			0.5			—		0.5			0.5			—
Combined ratio	96.3		%	93.2		%	(3.1)	pts	96.2		%	93.8		%	(2.4)	pts
Combined ratio excluding catastrophes and development	91.6		%	92.0		%	0.4	pts	91.8		%	92.3		%	0.5	pts

Net accident year catastrophe losses incurred	$	59		$	29				$	103		$	45
Effect on loss & LAE ratio	5.2		%	3.0		%	(2.2)	pts	4.7		%	2.4		%	(2.3)	pts

Net prior year development and other: (favorable) / unfavorable	$	(4)		$	(16)				$	(4)		$	(16)
Effect on loss & LAE ratio	(0.5)		%	(1.8)		%	(1.3)	pts	(0.3)		%	(0.9)		%	(0.6)	pts

Rate	8		%	5		%	3	pts	8		%	5		%	3	pts
Renewal premium change	11		%	7		%	4	pts	10		%	8		%	2	pts
Retention	85		%	87		%	(2)	pts	85		%	86		%	(1)	pts
New business	$	343		$	280		23	%	$	653		$	508		29	%

International - Results of Operations


Periods ended June 30	Three Months								Six Months
(In millions)	2023			2022			Change		2023			2022			Change
Gross written premiums	$	421		$	382		10	%	$	819		$	745		10	%
Net written premiums	359			330			9		630			581			8
Net earned premiums	302			269			12		592			533			11
Net investment income	25			14			79		48			28			71
Other revenues	1			1					1			—
Total operating revenues	328			284			15		641			561			14
Insurance claims and policyholders' benefits	185			160					374			318
Amortization of deferred acquisition costs	60			56					105			95
Other insurance related expenses	35			30					82			77
Other expenses	(5)			13					(4)			14
Total claims, benefits and expenses	275			259			(6)		557			504			(11)
Core income (loss) before income tax	53			25					84			57
Income tax (expense) benefit on core income (loss)	(15)			(7)					(22)			(13)
Core income (loss)	$	38		$	18		111	%	$	62		$	44		41	%

Other Performance Metrics
Underwriting gain (loss)	$	22		$	23		(4)	%	$	31		$	43		(28)	%

Loss & LAE ratio	61.0		%	59.5		%	(1.5)	pts	63.1		%	59.6		%	(3.5)	pts
Expense ratio	31.2			32.1			0.9		31.5			32.4			0.9
Dividend ratio	—			—			—		—			—			—
Combined ratio	92.2		%	91.6		%	(0.6)	pts	94.6		%	92.0		%	(2.6)	pts
Combined ratio excluding catastrophes and development	89.1		%	90.6		%	1.5	pts	89.2		%	91.0		%	1.8	pts

Net accident year catastrophe losses incurred	$	9		$	7				$	17		$	11
Effect on loss & LAE ratio	3.1		%	2.8		%	(0.3)	pts	2.9		%	2.0		%	(0.9)	pts

Net prior year development and other: (favorable) / unfavorable	$	—		$	(5)				$	15		$	(5)
Effect on loss & LAE ratio	—		%	(1.8)		%	(1.8)	pts	2.5		%	(1.0)		%	(3.5)	pts

Rate	4		%	6		%	(2)	pts	4		%	8		%	(4)	pts
Renewal premium change	7		%	10		%	(3)	pts	7		%	10		%	(3)	pts
Retention	83		%	84		%	(1)	pts	83		%	79		%	4	pts
New business	$	92		$	88		5	%	$	177		$	166		7	%

Life & Group - Results of Operations


Periods ended June 30	Three Months				Six Months
(In millions)	2023		2022 (1)		2023		2022 (1)
Net earned premiums	$	113	$	118	$	228	$	238
Net investment income	229		201		443		413
Other revenues	—		1		—		—
Total operating revenues	342		320		671		651
Insurance claims and policyholders' benefits	344		311		655		615
Other insurance related expenses	31		29		60		60
Other expenses	—		2		1		5
Total claims, benefits and expenses	375		342		716		680
Core income (loss) before income tax	(33)		(22)		(45)		(29)
Income tax (expense) benefit on core income (loss)	13		13		22		25
Core income (loss)	$	(20)	$	(9)	$	(23)	$	(4)

Corporate & Other - Results of Operations


Periods ended June 30	Three Months				Six Months
(In millions)	2023		2022		2023		2022
Net earned premiums	$	—	$	—	$	—	$	(1)
Net investment income	14		4		24		5
Other revenues	—		—		—		—
Total operating revenues	14		4		24		4
Insurance claims and policyholders' benefits	29		57		22		49
Other insurance related expenses	—		1		1		3
Other expenses	42		44		80		83


Total claims, benefits and expenses	71		102		103		135
Core income (loss) before income tax	(57)		(98)		(79)		(131)
Income tax (expense) benefit on core income (loss)	11		20		15		25
Core income (loss)	$	(46)	$	(78)	$	(64)	$	(106)

Investment Summary - Consolidated


	June 30, 2023				March 31, 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	$	22,611	$	(1,570)	$	22,915	$	(1,238)	$	21,429	$	(1,708)
States, municipalities and political subdivisions:
Tax-exempt	4,225		1		4,383		71		4,633		(45)
Taxable	3,585		(453)		3,618		(402)		3,684		(556)
Total states, municipalities and political subdivisions	7,810		(452)		8,001		(331)		8,317		(601)
Asset-backed:
RMBS	2,693		(440)		2,659		(407)		2,631		(442)
CMBS	1,583		(253)		1,631		(237)		1,635		(251)
Other ABS	3,248		(321)		3,165		(298)		2,927		(359)
Total asset-backed	7,524		(1,014)		7,455		(942)		7,193		(1,052)
U.S. Treasury and obligations of government-sponsored enterprises	127		(3)		124		(2)		110		(1)
Foreign government	651		(49)		609		(38)		575		(42)
Redeemable preferred stock	5		—		3		—		3		—
Total fixed maturity securities	38,728		(3,088)		39,107		(2,551)		37,627		(3,404)
Equities:
Common stock	205		—		206		—		185		—
Non-redeemable preferred stock	478		—		476		—		489		—
Total equities	683		—		682		—		674		—
Limited partnership investments:
Hedge funds	331		—		434		—		456		—
Private equity funds	1,689		—		1,548		—		1,470		—
Total limited partnership investments	2,020		—		1,982		—		1,926		—
Other invested assets	71		—		79		—		78		—
Mortgage loans	1,009		—		1,006		—		1,040		—
Short term investments	1,924		(1)		1,167		—		1,832		1
Total investments	$	44,435	$	(3,089)	$	44,023	$	(2,551)	$	43,177	$	(3,403)

Net receivable/(payable) on investment activity	$	41			$	(1)			$	8

Effective duration (in years)	6.5				6.8				6.6
Weighted average rating	A				A				A

RMBS - Residential mortgage-backed securities

CMBS - Commercial mortgage-backed securities

Other ABS - Other asset-backed securities

Investment Summary - Property & Casualty and Corporate & Other


	June 30, 2023				March 31, 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	$	13,715	$	(1,248)	$	13,881	$	(1,056)	$	13,165	$	(1,260)
States, municipalities and political subdivisions:
Tax-exempt	1,190		(190)		1,200		(175)		1,197		(211)
Taxable	1,954		(431)		1,955		(405)		1,986		(486)
Total states, municipalities and political subdivisions	3,144		(621)		3,155		(580)		3,183		(697)
Asset-backed:
RMBS	2,691		(440)		2,645		(407)		2,617		(442)
CMBS	1,554		(250)		1,602		(234)		1,606		(248)
Other ABS	2,648		(245)		2,564		(235)		2,374		(276)
Total asset-backed	6,893		(935)		6,811		(876)		6,597		(966)
U.S. Treasury and obligations of government-sponsored enterprises	126		(3)		123		(2)		109		(1)
Foreign government	623		(41)		580		(30)		546		(34)
Redeemable preferred stock	5		—		3		—		3		—
Total fixed maturity securities	24,506		(2,848)		24,553		(2,544)		23,603		(2,958)
Equities:
Common stock	205		—		206		—		185		—
Non-redeemable preferred stock	62		—		62		—		73		—
Total equities	267		—		268		—		258		—
Limited partnership investments:
Hedge funds	183		—		240		—		252		—
Private equity funds	935		—		857		—		814		—
Total limited partnership investments	1,118		—		1,097		—		1,066		—
Other invested assets	71		—		79		—		78		—
Mortgage loans	808		—		797		—		830		—
Short term investments	1,875		(1)		1,148		—		1,772		1
Total investments	$	28,645	$	(2,849)	$	27,942	$	(2,544)	$	27,607	$	(2,957)

Net receivable/(payable) on investment activity	$	37			$	(4)			$	(3)

Effective duration (in years)	4.6				4.8				4.7
Weighted average rating	A				A				A

Investment Summary - Life & Group


	June 30, 2023				March 31, 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	$	8,896	$	(322)	$	9,034	$	(182)	$	8,264	$	(448)
States, municipalities and political subdivisions:
Tax-exempt	3,035		191		3,183		246		3,436		166
Taxable	1,631		(22)		1,663		3		1,698		(70)
Total states, municipalities and political subdivisions	4,666		169		4,846		249		5,134		96
Asset-backed:
RMBS	2		—		14		—		14		—
CMBS	29		(3)		29		(3)		29		(3)
Other ABS	600		(76)		601		(63)		553		(83)
Total asset-backed	631		(79)		644		(66)		596		(86)
U.S. Treasury and obligations of government-sponsored enterprises	1		—		1		—		1		—
Foreign government	28		(8)		29		(8)		29		(8)
Redeemable preferred stock	—		—		—		—		—		—
Total fixed maturity securities	14,222		(240)		14,554		(7)		14,024		(446)
Equities:
Common stock	—		—		—		—		—		—
Non-redeemable preferred stock	416		—		414		—		416		—
Total equities	416		—		414		—		416		—
Limited partnership investments:
Hedge funds	148		—		194		—		204		—
Private equity funds	754		—		691		—		656		—
Total limited partnership investments	902		—		885		—		860		—
Other invested assets	—		—		—		—		—		—
Mortgage loans	201		—		209		—		210		—
Short term investments	49		—		19		—		60		—
Total investments	$	15,790	$	(240)	$	16,081	$	(7)	$	15,570	$	(446)

Net receivable/(payable) on investment activity	$	4			$	3			$	11

Effective duration (in years)	9.9				10.1				9.9
Weighted average rating	A-				A-				A

Investments - Fixed Maturity Securities by Credit Rating


June 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	$	3		$	—	$	30		$	(3)	$	533		$	(42)	$	6,351		$	(321)	$	14,270		$	(1,057)	$	1,424		$	(147)	$	22,611		$	(1,570)
States, municipalities and political subdivisions	—			—		1,190			(28)		4,651			(368)		1,671			1		297			(57)		1			—		7,810			(452)
Asset-backed:
RMBS	2,400			(330)		273			(113)		—			—		4			—		—			—		16			3		2,693			(440)
CMBS	—			—		425			(35)		620			(107)		209			(35)		256			(56)		73			(20)		1,583			(253)
Other ABS	—			—		395			(17)		221			(46)		1,263			(95)		1,207			(138)		162			(25)		3,248			(321)
Total asset-backed	2,400			(330)		1,093			(165)		841			(153)		1,476			(130)		1,463			(194)		251			(42)		7,524			(1,014)
U.S. Treasury and obligations of government-sponsored enterprises	127			(3)		—			—		—			—		—			—		—			—		—			—		127			(3)
Foreign government	—			—		179			(9)		360			(25)		81			(13)		31			(2)		—			—		651			(49)
Redeemable preferred stock	—			—		—			—		—			—		—			—		—			—		5			—		5			—
Total fixed maturity securities	$	2,530		$	(333)	$	2,492		$	(205)	$	6,385		$	(588)	$	9,579		$	(463)	$	16,061		$	(1,310)	$	1,681		$	(189)	$	38,728		$	(3,088)

Percentage of total fixed maturity securities	7		%			6		%			17		%			25		%			41		%			4		%			100		%

Investments - Commercial Real Estate Exposure

Fixed Income and Direct Mortgage Loans


	June 30, 2023						June 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	$	455	$	(48)
Office	$	289	$	(77)		Office	255		(30)
Retail	278		(38)			Industrial	86		(5)
Lodging	218		(20)			Other (1)	416		(39)
Industrial	90		(6)			Total corporate and other bonds - REITs (2)	$	1,212	$	(122)
Multifamily	51		(4)
Total single asset, single borrower	926		(145)
Conduits (multi property, multi borrower pools)	657		(108)
Total commercial mortgage-backed	$	1,583	$	(253)


	June 30, 2023						June 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	$	425	$	(35)		AA	$	11	$	(1)
AA	620		(107)			A	249		(13)
A	209		(35)			BBB	936		(106)
BBB	256		(56)			Non-investment grade	16		(2)
Non-investment grade	73		(20)			Total corporate and other bonds - REITs (2)	$	1,212	$	(122)
Total commercial mortgage-backed	$	1,583	$	(253)


	June 30, 2023
(In millions)	Carrying Value		Percentage of Total
Mortgage loans:
Retail	$	470	44		%
Office	255		25		%
Industrial	131		13		%
Other	183		18		%
Total mortgage loans	$	1,039	100		%	(1) Other includes a diversified mix of property type strategies including self-storage, healthcare and apartments.
Less: Allowance for expected credit losses	(30)
Total mortgage loans - net of allowance	$	1,009				(2) REITs - Real estate investment trusts

Components of Net Investment Income


Periods ended June 30	Consolidated
	Three Months						Six Months
(In millions)	2023			2022			2023			2022
Taxable fixed income securities	$	444		$	385		$	874		$	753
Tax-exempt fixed income securities	46			66			95			139
Total fixed income securities	490			451			969			892
Common stock	13			(21)			16			(31)
Limited partnerships - hedge funds	7			(35)			21			(45)
Limited partnerships - private equity funds	48			41			59			69
Total limited partnership and common stock investments	68			(15)			96			(7)
Other, net of investment expense	17			(4)			35			(5)
Net investment income	$	575		$	432		$	1,100		$	880

Effective income yield for fixed income securities portfolio	4.6		%	4.3		%	4.6		%	4.3		%
Limited partnership and common stock return	3.1			(0.7)			4.5			(0.3)


	Property & Casualty and Corporate & Other
Periods ended June 30
	Three Months						Six Months
(In millions)	2023			2022			2023			2022
Taxable fixed income securities	$	272		$	237		$	533		$	462
Tax-exempt fixed income securities	11			12			22			23
Total fixed income securities	283			249			555			485
Common stock	13			(21)			16			(31)
Limited partnerships - hedge funds	3			(20)			11			(25)
Limited partnerships - private equity funds	27			23			33			38
Total limited partnership and common stock investments	43			(18)			60			(18)
Other, net of investment expense	20			—			42			—
Net investment income	$	346		$	231		$	657		$	467

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


Periods ended June 30	Life & Group
	Three Months						Six Months
(In millions)	2023			2022			2023			2022
Taxable fixed income securities	$	172		$	148		$	341		$	291
Tax-exempt fixed income securities	35			54			73			116
Total fixed income securities	207			202			414			407
Common stock	—			—			—			—
Limited partnerships - hedge funds	4			(15)			10			(20)
Limited partnerships - private equity funds	21			18			26			31
Total limited partnership and common stock investments	25			3			36			11
Other, net of investment expense	(3)			(4)			(7)			(5)
Net investment income	$	229		$	201		$	443		$	413

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

Net Investment Gains (Losses)


Periods ended June 30	Consolidated
	Three Months				Six Months

(In millions)	2023		2022		2023		2022
Fixed maturity securities:
Corporate and other bonds	$	(12)	$	(30)	$	(35)	$	(27)
States, municipalities and political subdivisions	(3)		19		7		22
Asset-backed	(12)		(4)		(21)		(12)
Total fixed maturity securities	(27)		(15)		(49)		(17)
Non-redeemable preferred stock	3		(71)		(11)		(109)
Derivatives, short term and other	(2)		27		(1)		56
Mortgage loans	(6)		—		(6)		—
Net investment gains (losses)	(32)		(59)		(67)		(70)
Income tax benefit (expense) on net investment gains (losses)	7		19		14		27
Net investment gains (losses), after tax	$	(25)	$	(40)	$	(53)	$	(43)

Claim & Claim Adjustment Expense Reserve Rollforward


Three months ended June 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	$	6,976	$	9,528	$	2,502	$	19,006	$	704	$	2,699	$	22,409
Ceded	1,336		1,003		399		2,738		102		2,369		5,209
Net	5,640		8,525		2,103		16,268		602		330		17,200

Net incurred claim & claim adjustment expenses	474		742		185		1,401		10		44		1,455
Net claim & claim adjustment expense payments	(397)		(618)		(144)		(1,159)		(12)		(16)		(1,187)
Foreign currency translation adjustment and other	1		—		34		34		(12)		—		22

Claim & claim adjustment expense reserves, end of period
Net	5,718		8,648		2,178		16,544		588		358		17,490
Ceded	1,465		1,026		405		2,896		100		2,316		5,312
Gross	$	7,183	$	9,674	$	2,583	$	19,440	$	688	$	2,674	$	22,802


Six months ended June 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	939		1,429		374		2,742		18		45		2,805
Net claim & claim adjustment expense payments	(785)		(1,212)		(254)		(2,251)		(24)		(26)		(2,301)
Foreign currency translation adjustment and other	1		1		55		57		—		—		57

Claim & claim adjustment expense reserves, end of period
Net	5,718		8,648		2,178		16,544		588		358		17,490
Ceded	1,465		1,026		405		2,896		100		2,316		5,312
Gross	$	7,183	$	9,674	$	2,583	$	19,440	$	688	$	2,674	$	22,802

(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 June 30, 2023 (In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Beginning of period	$	602	$	13,976	$	14,578

Incurred claims and policyholders' benefits (1)	10		338		348
Benefit and expense payments	(12)		(327)		(339)
Change in discount rate assumptions and other (AOCI)	(12)		(321)		(333)

End of Period	$	588	$	13,666	$	14,254



Six months ended June 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)	18		638		656
Benefit and expense payments	(24)		(629)		(653)
Change in discount rate assumptions and other (AOCI)	—		178		178

End of Period	$	588	$	13,666	$	14,254

(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	Jul. 31, 2023
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Jul. 31, 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