CNA Financial (CNA) 8-K Cna Financial Announces First Quarter 2022

CNA Financial Corporation

Supplemental Financial Information

March 31, 2022

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.

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
Components of Net Investment Income	14
Other
Claim & Claim Adjustment Expense Reserve Rollforward	15
Life & Group Policyholder Reserves	16
Definitions and Presentation	17

Statements of Operations

Three months ended March 31
(In millions)	2022		2021		Change
Revenues:
Net earned premiums	$	2,059	$	1,962	5	%
Net investment income	448		504		(11)
Net investment gains (losses)	(11)		57
Non-insurance warranty revenue	382		338
Other revenues	7		5
Total revenues	2,885		2,866		1
Claims, Benefits and Expenses:
Insurance claims and policyholders' benefits	1,455		1,506
Amortization of deferred acquisition costs	344		359
Non-insurance warranty expense	354		311
Other operating expenses	326		284
Interest	28		28
Total claims, benefits and expenses	2,507		2,488		(1)
Income (loss) before income tax	378		378
Income tax (expense) benefit	(65)		(66)
Net income (loss)	$	313	$	312	—	%

1

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

Three months ended March 31
(In millions, except per share data)	2022			2021
Components of Income (Loss)
Core income (loss)	$	316		$	263
Net investment gains (losses)	(3)			49
Net income (loss)	$	313		$	312
Diluted Earnings (Loss) Per Common Share
Core income (loss)	$	1.16		$	0.96
Net investment gains (losses)	(0.01)			0.18
Diluted earnings (loss) per share	$	1.15		$	1.14
Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic	271.8			271.9
Diluted	272.9			272.9
Return on Equity
Net income (loss) (1)	10.6		%	10.1		%
Core income (loss) (2)	10.3			8.8

(1) 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.

(2) 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.

2

Selected Balance Sheet Data and Statements of Cash Flows Data

(In millions, except per share data)	March 31, 2022		December 31, 2021
Total investments	$	47,106	$	50,328
Reinsurance receivables, net of allowance for uncollectible receivables	5,505		5,463
Total assets	63,792		66,639
Insurance reserves	42,228		43,171
Debt	2,779		2,779
Total liabilities	52,975		53,830
Accumulated other comprehensive income (loss) (1)	(1,303)		320
Total stockholders' equity	10,817		12,809
Book value per common share	$	39.87	$	47.20
Book value per common share excluding AOCI	$	44.67	$	46.02
Outstanding shares of common stock (in millions of shares)	271.3		271.4
Statutory capital and surplus - Combined Continental Casualty Companies (2)	$	10,876	$	11,321

Three months ended March 31	2022		2021
Net cash flows provided (used) by operating activities	$	645	$	82
Net cash flows provided (used) by investing activities	(129)		408
Net cash flows provided (used) by financing activities	(688)		(321)
Net cash flows provided (used) by operating, investing and financing activities	$	(172)	$	169

(1) As of March 31, 2022 and December 31, 2021, the net unrealized gains on investments included in AOCI were net of after-tax Shadow Adjustments of $1,394 million and $2,477 million. To the extent that unrealized gains on fixed income securities supporting certain products within the Life & Group segment would result in a premium deficiency if realized, an increase in Insurance reserves are recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (loss) (Shadow Adjustments).

(2) Statutory capital and surplus as of March 31, 2022 is preliminary.

3

Property & Casualty - Results of Operations

Three months ended March 31
(In millions)	2022			2021			Change
Gross written premiums	$	3,417		$	3,250		5	%
Gross written premiums ex. 3rd party captives	2,454			2,270			8
Net written premiums	2,023			1,937			4
Net earned premiums	1,940			1,842			5
Net investment income	235			279
Non-insurance warranty revenue	382			338
Other revenues	8			5
Total operating revenues	2,565			2,464			4
Insurance claims and policyholders' benefits	1,182			1,227
Amortization of deferred acquisition costs	344			359
Non-insurance warranty expense	354			311
Other insurance related expenses	258			220
Other expenses	21			15
Total claims, benefits and expenses	2,159			2,132			(1)
Core income (loss) before income tax	406			332
Income tax (expense) benefit on core income (loss)	(85)			(69)
Core income (loss)	$	321		$	263		22	%
Other Performance Metrics
Underwriting gain (loss)	$	156		$	36		N/M	%
Loss & LAE ratio	60.6		%	66.3		%	5.7	pts
Expense ratio	31.0			31.5			0.5
Dividend ratio	0.3			0.3			—
Combined ratio	91.9		%	98.1		%	6.2	pts
Combined ratio excluding catastrophes and development	91.4		%	91.9		%	0.5	pts
Net accident year catastrophe losses incurred	$	19		$	125
Effect on loss & LAE ratio	1.0		%	6.8		%	5.8	pts
Net prior year development and other: (favorable) / unfavorable	$	(10)		$	(11)
Effect on loss & LAE ratio	(0.5)		%	(0.6)		%	(0.1)	pts
Rate	7		%	11		%	(4)	pts
Renewal premium change	9		%	11		%	(2)	pts
Retention	83		%	83		%	—	pts
New business	$	451		$	394		14	%

4

Specialty - Results of Operations

Three months ended March 31
(In millions)	2022			2021			Change
Gross written premiums	$	1,846		$	1,794		3	%
Gross written premiums ex. 3rd party captives	885			816			8
Net written premiums	771			742			4
Net earned premiums	772			735			5
Net investment income	103			117
Non-insurance warranty revenue	382			338
Other revenues	1			—
Total operating revenues	1,258			1,190			6
Insurance claims and policyholders' benefits	446			428
Amortization of deferred acquisition costs	157			154
Non-insurance warranty expense	354			311
Other insurance related expenses	81			70
Other expenses	13			11
Total claims, benefits and expenses	1,051			974			(8)
Core income (loss) before income tax	207			216
Income tax (expense) benefit on core income (loss)	(44)			(46)
Core income (loss)	$	163		$	170		(4)	%
Other Performance Metrics
Underwriting gain (loss)	$	88		$	83		6	%
Loss & LAE ratio	57.6		%	58.0		%	0.4	pts
Expense ratio	30.9			30.6			(0.3)
Dividend ratio	0.2			0.2			—
Combined ratio	88.7		%	88.8		%	0.1	pts
Combined ratio excluding catastrophes and development	90.0		%	90.2		%	0.2	pts
Net accident year catastrophe losses incurred	$	—		$	5
Effect on loss & LAE ratio	—		%	0.7		%	0.7	pts
Net prior year development and other: (favorable) / unfavorable	$	(10)		$	(15)
Effect on loss & LAE ratio	(1.3)		%	(2.1)		%	(0.8)	pts
Rate	9		%	11		%	(2)	pts
Renewal premium change	10		%	12		%	(2)	pts
Retention	85		%	86		%	(1)	pts
New business	$	145		$	103		41	%

5

Commercial - Results of Operations

Three months ended March 31
(In millions)	2022			2021			Change
Gross written premiums	$	1,208		$	1,113		9	%
Gross written premiums ex. 3rd party captives	1,206			1,111			9
Net written premiums	1,001			960			4
Net earned premiums	904			855			6
Net investment income	118			148
Other revenues	8			5
Total operating revenues	1,030			1,008			2
Insurance claims and policyholders' benefits	578			644
Amortization of deferred acquisition costs	148			153
Other insurance related expenses	130			115
Other expenses	7			9
Total claims, benefits and expenses	863			921			6
Core income (loss) before income tax	167			87
Income tax (expense) benefit on core income (loss)	(35)			(18)
Core income (loss)	$	132		$	69		91	%
Other Performance Metrics
Underwriting gain (loss)	$	48		$	(57)		184	%
Loss & LAE ratio	63.3		%	74.7		%	11.4	pts
Expense ratio	30.7			31.4			0.7
Dividend ratio	0.5			0.6			0.1
Combined ratio	94.5		%	106.7		%	12.2	pts
Combined ratio excluding catastrophes and development	92.7		%	92.8		%	0.1	pts
Net accident year catastrophe losses incurred	$	16		$	115
Effect on loss & LAE ratio	1.8		%	13.4		%	11.6	pts
Net prior year development and other: (favorable) / unfavorable	$	—		$	4
Effect on loss & LAE ratio	—		%	0.5		%	0.5	pts
Rate	5		%	10		%	(5)	pts
Renewal premium change	8		%	11		%	(3)	pts
Retention	85		%	83		%	2	pts
New business	$	228		$	211		8	%

6

International - Results of Operations

Three months ended March 31
(In millions)	2022			2021			Change
Gross written premiums	$	363		$	343		6	%
Net written premiums	251			235			7
Net earned premiums	264			252			5
Net investment income	14			14
Other revenues	(1)			—
Total operating revenues	277			266			4
Insurance claims and policyholders' benefits	158			155
Amortization of deferred acquisition costs	39			52
Other insurance related expenses	47			35
Other expenses	1			(5)
Total claims, benefits and expenses	245			237			(3)
Core income (loss) before income tax	32			29
Income tax (expense) benefit on core income (loss)	(6)			(5)
Core income (loss)	$	26		$	24		8	%
Other Performance Metrics
Underwriting gain (loss)	$	20		$	10		100	%
Loss & LAE ratio	59.8		%	61.5		%	1.7	pts
Expense ratio	32.6			34.4			1.8
Dividend ratio	—			—			—
Combined ratio	92.4		%	95.9		%	3.5	pts
Combined ratio excluding catastrophes and development	91.2		%	94.0		%	2.8	pts
Net accident year catastrophe losses incurred	$	3		$	5
Effect on loss & LAE ratio	1.2		%	2.0		%	0.8	pts
Net prior year development and other: (favorable) / unfavorable	$	—		$	—
Effect on loss & LAE ratio	—		%	(0.1)		%	(0.1)	pts
Rate	9		%	14		%	(5)	pts
Renewal premium change	10		%	12		%	(2)	pts
Retention	73		%	75		%	(2)	pts
New business	$	78		$	80		(3)	%

7

Life & Group - Results of Operations

Three months ended March 31
(In millions)	2022		2021
Net earned premiums	$	120	$	120
Net investment income	212		219
Other revenues	(1)		1
Total operating revenues	331		340
Insurance claims and policyholders' benefits	281		281
Other insurance related expenses	31		25
Other expenses	3		2
Total claims, benefits and expenses	315		308
Core income (loss) before income tax	16		32
Income tax (expense) benefit on core income (loss)	7		4
Core income (loss)	$	23	$	36

8

Corporate & Other - Results of Operations

Three months ended March 31
(In millions)	2022		2021
Net earned premiums	$	(1)	$	—
Net investment income	1		6
Other revenues	—		(1)
Total operating revenues	—		5
Insurance claims and policyholders' benefits	(8)		(2)
Other insurance related expenses	2		10
Other expenses	39		40
Total claims, benefits and expenses	33		48
Core income (loss) before income tax	(33)		(43)
Income tax (expense) benefit on core income (loss)	5		7
Core income (loss)	$	(28)	$	(36)

9

Investment Summary - Consolidated

	March 31, 2022				December 31, 2021
(In millions)	Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	22,786	$	791	$	24,139	$	2,699
States, municipalities and political subdivisions:
Tax-exempt	7,091		485		7,781		1,119
Taxable	3,968		58		4,162		466
Total states, municipalities and political subdivisions	11,059		543		11,943		1,585
Asset-backed:
RMBS	2,848		(135)		2,956		63
CMBS	1,940		(68)		2,031		44
Other ABS	2,623		(82)		2,598		44
Total asset-backed	7,411		(285)		7,585		151
U.S. Treasury and obligations of government-sponsored enterprises	120		(5)		130		(2)
Foreign government	549		(10)		583		13
Redeemable preferred stock	20		—		—		—
Total fixed maturity securities	41,945		1,034		44,380		4,446
Equities:
Common stock	220		—		233		—
Non-redeemable preferred stock	761		—		802		—
Total equities	981		—		1,035		—
Limited partnership investments	1,840		—		1,859		—
Other invested assets	97		—		91		—
Mortgage loans	942		—		973		—
Short term investments	1,301		—		1,990		—
Total investments	$	47,106	$	1,034	$	50,328	$	4,446
Net receivable/(payable) on investment activity	$	(94)			$	201
Effective duration (in years)	6.5				6.6
Weighted average rating	A				A

RMBS - Residential mortgage-backed securities

CMBS - Commercial mortgage-backed securities

Other ABS - Other asset-backed securities

10

Investment Summary - Property & Casualty and Corporate & Other

	March 31, 2022				December 31, 2021
(In millions)	Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	14,296	$	(173)	$	14,897	$	713
States, municipalities and political subdivisions:
Tax-exempt	1,518		$	(80)	1,604		92
Taxable	2,268		$	(154)	2,369		69
Total states, municipalities and political subdivisions	3,786		(234)		3,973		161
Asset-backed:
RMBS	2,802		(135)		2,899		60
CMBS	1,871		(67)		1,955		42
Other ABS	2,328		(74)		2,326		31
Total asset-backed	7,001		(276)		7,180		133
U.S. Treasury and obligations of government-sponsored enterprises	102		(2)		109		(2)
Foreign government	515		(7)		545		11
Redeemable preferred stock	20		—		—		—
Total fixed maturity securities	25,720		(692)		26,704		1,016
Equities:
Common stock	220		—		233		—
Non-redeemable preferred stock	171		—		179		—
Total equities	391		—		412		—
Limited partnership investments	1,018		—		1,029		—
Other invested assets	97		—		91		—
Mortgage loans	722		—		741		—
Short term investments	1,286		—		1,887		—
Total investments	$	29,234	$	(692)	$	30,864	$	1,016
Net receivable/(payable) on investment activity	$	(132)			$	145
Effective duration (in years)	5.0				4.9
Weighted average rating	A-				A

11

Investment Summary - Life & Group

	March 31, 2022				December 31, 2021
(In millions)	Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	8,490	$	964	$	9,242	$	1,986
States, municipalities and political subdivisions:
Tax-exempt	5,573		565		6,177		1,027
Taxable	1,700		212		1,793		397
Total states, municipalities and political subdivisions	7,273		777		7,970		1,424
Asset-backed:
RMBS	46		—		57		3
CMBS	69		(1)		76		2
Other ABS	295		(8)		272		13
Total asset-backed	410		(9)		405		18
U.S. Treasury and obligations of government-sponsored enterprises	18		(3)		21		—
Foreign government	34		(3)		38		2
Redeemable preferred stock	—		—		—		—
Total fixed maturity securities	16,225		1,726		17,676		3,430
Equities:
Common stock	—		—		—		—
Non-redeemable preferred stock	590		—		623		—
Total equities	590		—		623		—
Limited partnership investments	822		—		830		—
Other invested assets	—		—		—		—
Mortgage loans	220		—		232		—
Short term investments	15		—		103		—
Total investments	$	17,872	$	1,726	$	19,464	$	3,430
Net receivable/(payable) on investment activity	$	38			$	56
Effective duration (in years)	8.9				9.2
Weighted average rating	A				A

12

Investments - Fixed Maturity Securities by Credit Rating

March 31, 2022	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	$	—		$	—	$	33		$	(1)	$	460		$	10	$	5,234		$	202	$	15,340		$	608	$	1,719		$	(28)	$	22,786		$	791
States, municipalities and political subdivisions	—			—		2,614			152		5,530			187		2,405			204		507			—		3			—		11,059			543
Asset-backed:
RMBS	2,375			(102)		311			(48)		8			—		21			1		22			3		111			11		2,848			(135)
CMBS	2			—		308			(3)		815			(25)		259			(12)		399			(21)		157			(7)		1,940			(68)
Other ABS	—			—		100			(2)		162			(7)		1,039			(25)		1,199			(38)		123			(10)		2,623			(82)
Total asset-backed	2,377			(102)		719			(53)		985			(32)		1,319			(36)		1,620			(56)		391			(6)		7,411			(285)
U.S. Treasury and obligations of government-sponsored enterprises	120			(5)		—			—		—			—		—			—		—			—		—			—		120			(5)
Foreign government	—			—		147			(1)		268			(5)		104			(4)		30			—		—			—		549			(10)
Redeemable preferred stock	—			—		—			—		—			—		—			—		—			—		20			—		20			—
Total fixed maturity securities	$	2,497		$	(107)	$	3,513		$	97	$	7,243		$	160	$	9,062		$	366	$	17,497		$	552	$	2,133		$	(34)	$	41,945		$	1,034
Percentage of total fixed maturity securities	6		%			8		%			17		%			22		%			42		%			5		%			100		%

13

Components of Net Investment Income

Three months ended March 31	Consolidated
(In millions)	2022			2021
Taxable fixed income securities	$	368		$	359
Tax-exempt fixed income securities	73			80
Total fixed income securities	441			439
Limited partnership and common stock investments	8			61
Other, net of investment expense	(1)			4
Net investment income	$	448		$	504
Effective income yield for fixed income securities portfolio	4.3		%	4.4		%
Limited partnership and common stock return	0.4			3.4

	Property & Casualty and Corporate & Other
Three months ended March 31
(In millions)	2022			2021
Taxable fixed income securities	$	225		$	225
Tax-exempt fixed income securities	11			12
Total fixed income securities	236			237
Limited partnership and common stock investments	—			42
Other, net of investment expense	—			6
Net investment income	$	236		$	285
Effective income yield for fixed income securities portfolio	3.6		%	3.8		%

Three months ended March 31	Life & Group
(In millions)	2022			2021
Taxable fixed income securities	$	143		$	134
Tax-exempt fixed income securities	62			68
Total fixed income securities	205			202
Limited partnership and common stock investments	8			19
Other, net of investment expense	(1)			(2)
Net investment income	$	212		$	219
Effective income yield for fixed income securities portfolio	5.5		%	5.5		%

14

Claim & Claim Adjustment Expense Reserve Rollforward

Three months ended March 31, 2022 (In millions)	Specialty		Commercial		International		P&C Operations		Life & Group		Corporate & Other		Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	6,433	$	8,890	$	2,280	$	17,603	$	3,754	$	2,817	$	24,174
Ceded	1,168		825		340		2,333		113		2,523		4,969
Net	5,265		8,065		1,940		15,270		3,641		294		19,205
Net incurred claim & claim adjustment expenses	445		572		158		1,175		271		4		1,450
Net claim & claim adjustment expense payments	(327)		(526)		(102)		(955)		(247)		(15)		(1,217)
Foreign currency translation adjustment and other	—		—		(27)		(27)		(65)		—		(92)
Claim & claim adjustment expense reserves, end of period
Net	5,383		8,111		1,969		15,463		3,600		283		19,346
Ceded	1,240		823		347		2,410		112		2,480		5,002
Gross	$	6,623	$	8,934	$	2,316	$	17,873	$	3,712	$	2,763	$	24,348

15

Life & Group Policyholder Reserves

March 31, 2022
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,933	$	10,022	$	12,955
Structured settlement annuities and other	532		—		532
Total	3,465		10,022		13,487
Shadow adjustments	135		1,629		1,764
Ceded reserves	112		287		399
Total gross reserves	$	3,712	$	11,938	$	15,650

December 31, 2021
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,905	$	10,012	$	12,917
Structured settlement annuities and other	536		—		536
Total	3,441		10,012		13,453
Shadow adjustments	200		2,936		3,136
Ceded reserves	113		288		401
Total gross reserves	$	3,754	$	13,236	$	16,990

16

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 primarily includes the results of long term care businesses that are in run-off.

•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, excess workers' compensation and legacy mass tort. Intersegment eliminations are also included in this segment.

•Management uses the core income (loss) financial measure to monitor the Company’s operations. Please refer to Note O to the Consolidated Financial Statements within the December 31, 2021 Form 10-K for further discussion of this non-GAAP financial measure.

•Management uses underwriting results to monitor insurance operations. Underwriting results are pretax and are 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.

•In the evaluation of the results of Specialty, Commercial and International, 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. Retention represents the percentage of premium dollars renewed in comparison to the expiring premium dollars from policies available to renew. Rate, renewal premium change and retention presented for the prior year is updated to reflect subsequent activity on policies written in the period. New business represents premiums from policies written with new customers and additional policies written with existing customers.

•This financial supplement may also reference or contain financial measures that are not in accordance with GAAP. Management utilizes these financial measures to monitor the Company's insurance operations and investment portfolio. Core income, which is derived from certain income statement amounts, is used by management to monitor performance of the Company's insurance operations. 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.

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•Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses and any cumulative effects of changes in accounting guidance. 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. 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.

•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.

•Pretax net prior year development and other 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.

•Certain immaterial differences are due to rounding.

•N/M = Not Meaningful

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