CNA Financial (CNA) 8-K Results of Operations and Financial Condition

CNA Financial Corporation

Supplemental Financial Information

September 30, 2009

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.

CNA Financial Corporation (CNAF)
Table of Contents
September 30, 2009

	Page
Definitions and Presentation		i
Statements of Operations		1
Components of Income (Loss) Attributable to CNAF Common Stockholders, Per Share Data and Return on Equity		2
Selected Balance Sheets Data and Statements of Cash Flows Data		3
Claim & Claim Adjustment Expense Reserve Rollforward		4
Investments by Segment Aggregation		5
Mortgage and Asset-Backed Holdings		6-9
Property & Casualty Results of Operations (Three Months Ended)		10
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Three Months Ended)		11
Property & Casualty Results of Operations (Nine Months Ended)		12
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Nine Months Ended)		13
Components of Pretax Net Investment Income		14
Statutory Data — Preliminary		15
Property & Casualty Operations Loss and LAE Ratio Analysis		16

CNA Financial Corporation

Definitions and Presentation

• P&C Operationsincludes Standard Lines and Specialty Lines.

• Life & Group Non-Coresegment primarily includes the results of the life and group lines of business that are in run-off.

• Corporate & Other Non-Coresegment primarily includes certain corporate expenses including interest on corporate debt and the results of certain property and casualty business primarily in run-off, including CNA Re. This segment also includes the results related to the centralized adjusting and settlement of asbestos and environmental pollution claims.

• Property and Casualty Companiesincludes Standard Lines, Specialty Lines and P&C business written in the Life & Group Non-Core and Corporate & Other Non-Core segments.

• Management utilizes the net operating income financial measure to monitor the Company’s operations. Please refer to Note N of the Consolidated Financial Statements within the 2008 Form 10-K for further discussion of this measure.

• In evaluating the results of Standard Lines and Specialty Lines, management utilizes the combined ratio, the loss ratio, the expense ratio, and the dividend ratio. These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). 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.

• Limited partnerships (LPs) are a relatively small portion of CNA’s overall investment portfolio. The majority of our limited partnership investments employ strategies that generate returns through investing in securities that are marketable while engaging in various management techniques primarily in public fixed income and equity markets. The risks associated with limited partnership investments may include losses due to leveraging, short-selling, derivatives or other speculative investment practices. The use of leverage increases the level of returns and volatility generated by the underlying investment strategies.

• Certain immaterial differences are due to rounding.

• N/M = Not Meaningful

• FY = Full Year

i

CNA FINANCIAL CORPORATION
Financial Supplement
Statements of Operations

							Fav /									Fav /
PERIODS ENDED SEPTEMBER 30	Three Months						(Unfav)			Nine Months						(Unfav)
(In millions)	2009			2008			% Change			2009			2008			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,707		$	1,799			(5	)%	$	5,035		$	5,386			(7	)%
Net investment income		660			439			50			1,755			1,449			21
Net realized investment losses, net of participating policyholders’ interests:
Other-than-temporary impairment (OTTI) losses		(232	)		(584	)		60			(1,330	)		(840	)		(58	)
Portion of OTTI losses recognized in Other comprehensive income		84			—			N/M			173			—			N/M
Net OTTI losses recognized in earnings		(148	)		(584	)		75			(1,157	)		(840	)		(38	)
Other net realized investment gains (losses)		48			(67	)		172			228			27			N/M
Net realized investment losses, net of participating policyholders’ interests		(100	)		(651	)		85			(929	)		(813	)		(14	)
Other revenues		73			72			1			213			240			(11	)
Total revenues		2,340			1,659			41			6,074			6,262			(3	)
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,283			1,519			16			3,919			4,380			11
Amortization of deferred acquisition costs		365			355			(3	)		1,063			1,083			2
Other operating expenses		272			294			7			814			724			(12	)
Interest		34			33			(3	)		95			100			5
Total claims, benefits and expenses		1,954			2,201			11			5,891			6,287			6
Income (loss) from continuing operations before income tax		386			(542	)		171			183			(25	)		N/M
Income tax (expense) benefit		(108	)		218			(150	)		30			92			(67	)
Income (loss) from continuing operations		278			(324	)		186			213			67			N/M
Income (loss) from discontinued operations, net of income tax (expense) benefit of $0, $9, $0 and $9		(1	)		9			(111	)		(2	)		10			(120	)
Net income (loss)		277			(315	)		188			211			77			174
Net income attributable to noncontrolling interests		(14	)		(16	)		13			(38	)		(40	)		5
Net income (loss) attributable to CNAF	$	263		$	(331	)		179	%	$	173		$	37			N/M	%

1

CNA FINANCIAL CORPORATION
Financial Supplement
Components of Income (Loss) Attributable to CNAF Common Stockholders, Per Share Data and Return on Equity

PERIODS ENDED SEPTEMBER 30	Three Months						Nine Months
(In millions, except per share data)	2009			2008			2009			2008
COMPONENTS OF INCOME (LOSS) ATTRIBUTABLE TO CNAF COMMON STOCKHOLDERS
Net operating income from continuing operations attributable to CNAF	$	331		$	83		$	785		$	554
Less: 2008 Senior Preferred dividend		(31	)		—			(94	)		—
Net operating income from continuing operations attributable to CNAF common stockholders		300			83			691			554
Net realized investment losses attributable to CNAF common stockholders		(67	)		(423	)		(610	)		(527	)
Income (loss) from continuing operations attributable to CNAF common stockholders		233			(340	)		81			27
Income (loss) from discontinued operations attributable to CNAF common stockholders		(1	)		9			(2	)		10
Income (loss) attributable to CNAF common stockholders	$	232		$	(331	)	$	79		$	37
BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE
Net operating income from continuing operations attributable to CNAF	$	1.23		$	0.31		$	2.92		$	2.06
Less: 2008 Senior Preferred dividend		(0.12	)		—			(0.35	)		—
Net operating income from continuing operations attributable to CNAF common stockholders		1.11			0.31			2.57			2.06
Net realized investment losses attributable to CNAF common stockholders		(0.25	)		(1.57	)		(2.27	)		(1.96	)
Income (loss) from continuing operations attributable to CNAF common stockholders		0.86			(1.26	)		0.30			0.10
Income (loss) from discontinued operations attributable to CNAF common stockholders		—			0.03			(0.01	)		0.04
Basic and diluted earnings (loss) per share attributable to CNAF common stockholders	$	0.86		$	(1.23	)	$	0.29		$	0.14
WEIGHTED AVERAGE OUTSTANDING COMMON STOCK AND COMMON STOCK EQUIVALENTS
Basic		269.0			269.0			269.0			269.6
Diluted		269.2			269.1			269.1			269.6
RETURN ON EQUITY
Net income (loss) attributable to CNAF (1)		10.8	%		(15.5)	%		2.6	%		0.6	%
Net operating income from continuing operations attributable to CNAF (2)		12.2			3.3			9.6			7.4

(1)	Annualized net income (loss) attributable to CNAF divided by the average CNAF 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 net operating income from continuing operations attributable to CNAF divided by the average CNAF 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

CNA FINANCIAL CORPORATION
Financial Supplement
Selected Balance Sheets Data and Statements of Cash Flows Data

(In millions, except per share data)	September 30, 2009			December 31, 2008
Total assets	$	55,575		$	51,688
Insurance reserves		38,362			38,771
Debt		2,056			2,058
Total liabilities		44,320			44,391
Preferred stock		1,250			1,250
Accumulated other comprehensive loss		(247	)		(3,924	)
Noncontrolling interests		486			420
Total CNAF stockholders’ equity		10,769			6,877
Book value per common share	$	35.38		$	20.92
Book value per common share excluding AOCI	$	36.30		$	35.50
Outstanding shares of common stock (in millions of shares)		269.0			269.0

THREE MONTHS ENDED
SEPTEMBER 30
(In millions)	2009			2008
Net cash flows provided (used) by operating activities (1)	$	(12	)	$	449
Net cash flows provided (used) by investing activities		52			(277	)
Net cash flows used by financing activities		(13	)		(139	)
Net cash flows from operating, investing and financing activities	$	27		$	33
NINE MONTHS ENDED
SEPTEMBER 30
(In millions)	2009			2008
Net cash flows provided by operating activities (1)	$	275		$	1,261
Net cash flows used by investing activities		(168	)		(508	)
Net cash flows used by financing activities		(72	)		(733	)
Net cash flows from operating, investing and financing activities	$	35		$	20

(1) Operating cash flows for the three and nine months ended September 30, 2009 include $(4) million and $(16) million related to discontinued operations. Operating cash flows for the three and nine months ended September 30, 2008 include $(9) million and $(7) million related to discontinued operations.

3

CNA FINANCIAL CORPORATION
Financial Supplement
Claim & Claim Adjustment Expense Reserve Rollforward

THREE MONTHS ENDED SEPTEMBER 30, 2009
										Life & Group			Corporate &
(In millions)	Standard Lines			Specialty Lines			P&C Operations			Non-Core			Other Non-Core			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	11,705		$	8,462		$	20,167		$	2,862		$	4,071		$	27,100
Ceded		2,050			1,374			3,424			909			1,590			5,923
Net		9,655			7,088			16,743			1,953			2,481			21,177
Net incurred claim & claim adjustment expenses		524			534			1,058			49			22			1,129
Net claim & claim adjustment expense payments		(561	)		(410	)		(971	)		(20	)		(99	)		(1,090	)
Foreign currency translation adjustment		—			43			43			—			4			47
Claim & claim adjustment expense reserves, end of period
Net		9,618			7,255			16,873			1,982			2,408			21,263
Ceded		2,040			1,363			3,403			884			1,356			5,643
Gross	$	11,658		$	8,618		$	20,276		$	2,866		$	3,764		$	26,906
				��
NINE MONTHS ENDED SEPTEMBER 30, 2009
										Life & Group			Corporate &
(In millions)	Standard Lines			Specialty Lines			P&C Operations			Non-Core			Other Non-Core			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	12,048		$	8,282		$	20,330		$	2,862		$	4,401		$	27,593
Ceded		2,178			1,439			3,617			957			1,714			6,288
Net		9,870			6,843			16,713			1,905			2,687			21,305
Net incurred claim & claim adjustment expenses		1,513			1,556			3,069			330			68			3,467
Net claim & claim adjustment expense payments		(1,765	)		(1,229	)		(2,994	)		(253	)		(353	)		(3,600	)
Foreign currency translation adjustment		—			85			85			—			6			91
Claim & claim adjustment expense reserves, end of period
Net		9,618			7,255			16,873			1,982			2,408			21,263
Ceded		2,040			1,363			3,403			884			1,356			5,643
Gross	$	11,658		$	8,618		$	20,276		$	2,866		$	3,764		$	26,906

4

CNA FINANCIAL CORPORATION
Financial Supplement
Investments by Segment Aggregation

	September 30, 2009					June 30, 2009					December 31, 2008
(In millions)	Book Value			Fair Value		Book Value			Fair Value		Book Value		Fair Value
Property & Casualty and Corporate & Other Non-Core:
Fixed maturities — taxable	$	20,420		$	19,892	$	18,564		$	16,844	$	18,987	$	15,880
Fixed maturities — tax-exempt		4,804			4,798		5,757			5,416		6,341		5,638
Equities		301			642		329			460		466		515
Short-term investments		3,846			3,850		4,307			4,307		3,070		3,078
Limited partnership investments		1,878			1,878		1,768			1,768		1,667		1,667
Other		4			5		4			8		3		27
Total investments	$	31,253		$	31,065	$	30,729		$	28,803	$	30,534	$	26,805
Net receivable/(payable)	$	(235	)			$	(99	)			$	311
Securities lending collateral		—					—					—
Life & Group Non-Core:
Fixed maturities — taxable	$	7,026		$	7,340	$	6,973		$	6,558	$	6,611	$	5,592
Fixed maturities — tax-exempt		2,630			2,688		2,532			2,222		2,216		1,777
Equities		338			330		338			288		550		356
Short-term investments		224			225		174			174		457		456
Limited partnership investments		12			12		12			12		16		16
Other		1			1		—			—		1		1
Total investments	$	10,231		$	10,596	$	10,029		$	9,254	$	9,851	$	8,198
Net receivable/(payable)	$	(37	)			$	(12	)			$	79
Securities lending collateral		—					—					—
Total investments	$	41,484		$	41,661	$	40,758		$	38,057	$	40,385	$	35,003
Total net receivable/(payable)	$	(272	)			$	(111	)			$	390
Total securities lending collateral		—					—					—

The information above related to net receivable/(payable) and securities lending collateral is provided to facilitate an analysis of significant changes in book value. When compared to the net receivable/(payable) per the Consolidated Balance Sheets, the amounts above exclude $5 million, $23 million, and $0 million as of September 30, 2009, June 30, 2009, and December 31, 2008 where the net receivable/(payable) balance does not relate to change in book value.

5

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of September 30, 2009
(In millions)

Invested Assets Fair Value By Segment

	P&C and
	Corporate & Other				Life & Group
	Non-Core		%		Non-Core		%		Total		%
RMBS	$	6,100		19.5	$	455		4.3	$	6,555		15.7
CMBS		451		1.4		148		1.4		599		1.5
Other ABS		613		2.0		59		0.6		672		1.6
Total Mortgage and Asset-Backed Holdings		7,164		22.9		662		6.3		7,826		18.8
Other taxable fixed maturities		12,728		42.4		6,678		63.0		19,406		46.6
Tax exempt fixed maturities		4,798		15.4		2,688		25.4		7,486		18.0
All other		6,375		19.3		568		5.3		6,943		16.6
Total investments	$	31,065		100.0	$	10,596		100.0	$	41,661		100.0
Sub-prime (Included in RMBS Above)	$	702		2.2	$	9		0.1	$	711		1.7
Alt-A (Included in RMBS Above)	$	798		2.5	$	42		0.4	$	840		2.0
Invested Assets Amortized Cost By Segment
	P&C and
	Corporate & Other				Life & Group
	Non-Core		%		Non-Core		%		Total		%
RMBS	$	6,810		21.8	$	535		5.2	$	7,345		17.7
CMBS		562		1.8		198		2.0		760		1.8
Other ABS		647		2.1		54		0.5		701		1.7
Total Mortgage and Asset-Backed Holdings		8,019		25.7		787		7.7		8,806		21.2
Other taxable fixed maturities		12,401		39.7		6,239		61.0		18,640		45.0
Tax exempt fixed maturities		4,804		15.3		2,630		25.7		7,434		17.9
All other		6,029		19.3		575		5.6		6,604		15.9
Total investments	$	31,253		100.0	$	10,231		100.0	$	41,484		100.0
Sub-prime (Included in RMBS Above)	$	941		3.0	$	9		0.1	$	950		2.3
Alt-A (Included in RMBS Above)	$	934		3.0	$	77		0.8	$	1,011		2.4

RMBS/CMBS/Other ABS Distribution

																	% of Mortgage & Asset-
	RMBS				CMBS				Other ABS				Total				Backed Holdings				% of Total Investments
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
U.S. Government Agencies	$	2,442	$	2,394	$	—	$	—	$	—	$	—	$	2,442	$	2,394		31.2		27.2		5.9		5.8
AAA		1,910		2,183		378		442		516		531		2,804		3,156		35.8		35.8		6.7		7.6
AA		285		353		92		125		27		30		404		508		5.2		5.8		1.0		1.2
A		282		364		65		98		11		11		358		473		4.6		5.4		0.9		1.1
BBB		224		271		47		73		118		129		389		473		5.0		5.4		0.9		1.1
<BBB & Equity Tranches		1,412		1,780		17		22		—		—		1,429		1,802		18.2		20.4		3.4		4.4
Total RMBS/CMBS/Other ABS	$	6,555	$	7,345	$	599	$	760	$	672	$	701	$	7,826	$	8,806		100.0		100.0		18.8		21.2

(1)	The exposure to sub-prime residential mortgage (sub-prime) collateral and Alternative A residential mortgages that have lower than normal standards of loan documentation (Alt-A) collateral is measured by the original deal structure.
(2)	The ratings presented are based on a ratings methodology that takes into account ratings from the three major providers, Standard & Poors, Moody’s Investor Services, Inc. and Fitch Ratings in that order of preference. If a security is not rated by any of the three, an internal rating is formulated. For securities with credit support from third party guarantees, the rating reflects the greater of the underlying rating of the issuer or the insured rating.
RMBS — Residential mortgage-backed securities
CMBS — Commercial mortgage-backed securities
Other ABS — Other asset-backed securities

6

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of September 30, 2009
(In millions)

RMBS Sub-Prime Fair Value Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—
2008		—		—		—		—		—		—		—		—		—		—		—		—
2007		10		4.2		31		29.0		7		12.7		5		17.9		59		21.1		112		15.7
2006		164		68.0		17		15.9		19		34.5		21		75.0		175		62.5		396		55.7
2005		53		22.0		36		33.6		—		—		2		7.1		19		6.8		110		15.5
2004		9		3.7		10		9.4		14		25.5		—		—		13		4.6		46		6.5
2003 & prior		5		2.1		13		12.1		15		27.3		—		—		14		5.0		47		6.6
Total sub-prime	$	241		100.0	$	107		100.0	$	55		100.0	$	28		100.0	$	280		100.0	$	711		100.0
RMBS Sub-Prime Amortized Cost Quality Distribution by Vintage Year
																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—
2008		—		—		—		—		—		—		—		—		—		—		—		—
2007		11		3.9		32		20.7		7		7.4		6		18.2		75		19.4		131		13.7
2006		193		68.0		24		16.0		20		21.0		25		75.7		234		60.4		496		52.3
2005		64		22.5		59		39.3		1		1.1		2		6.1		24		6.2		150		15.7
2004		10		3.5		15		10.0		42		44.2		—		—		32		8.3		99		10.5
2003 & prior		6		2.1		21		14.0		25		26.3		—		—		22		5.7		74		7.8
Total sub-prime	$	284		100.0	$	151		100.0	$	95		100.0	$	33		100.0	$	387		100.0	$	950		100.0
RMBS Alt-A Fair Value Quality Distribution by Vintage Year
																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—
2008		—		—		—		—		—		—		—		—		—		—		—		—
2007		—		—		—		—		—		—		—		—		142		48.0		142		16.9
2006		4		0.8		—		—		—		—		—		—		108		36.2		112		13.2
2005		38		8.0		—		—		24		54.6		—		—		46		15.5		108		12.9
2004		322		68.0		25		100.0		20		45.4		—		—		1		0.3		368		43.9
2003 & prior		110		23.2		—		—		—		—		—		—		—		—		110		13.1
Total Alt-A	$	474		100.0	$	25		100.0	$	44		100.0	$	—		—	$	297		100.0	$	840		100.0
RMBS Alt-A Amortized Cost Quality Distribution by Vintage Year
																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—
2008		—		—		—		—		—		—		—		—		—		—		—		—
2007		—		—		—		—		—		—		—		—		163		48.5		163		16.1
2006		4		0.7		—		—		—		—		—		—		116		34.5		120		11.9
2005		68		11.6		—		—		33		54.1		—		—		55		16.4		156		15.4
2004		390		66.8		30		100.0		28		45.9		—		—		2		0.6		450		44.5
2003 & prior		122		20.9		—		—		—		—		—		—		—		—		122		12.1
Total Alt-A	$	584		100.0	$	30		100.0	$	61		100.0	$	—		—	$	336		100.0	$	1,011		100.0

7

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of September 30, 2009
(In millions)

RMBS Distribution By Collateral Type & Quality

	Fixed Coupon -				Fixed Coupon -
	30 Year				15/20 Year				ARM				Home Equity				Other				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
U.S. Government Agencies	$	2,070	$	2,034	$	315	$	305	$	17	$	16	$	—	$	—	$	40	$	39	$	2,442	$	2,394
AAA		1,162		1,374		160		172		188		212		54		58		346		367		1,910		2,183
AA		177		215		—		—		45		48		63		90		—		—		285		353
A		248		325		4		5		4		6		24		26		2		2		282		364
BBB		187		222		—		—		29		39		8		10		—		—		224		271
<BBB & Equity Tranches		674		844		108		106		532		711		92		112		6		7		1,412		1,780
Total RMBS	$	4,518	$	5,014	$	587	$	588	$	815	$	1,032	$	241	$	296	$	394	$	415	$	6,555	$	7,345
Included in Total RMBS:
Pass-Thru	$	1,045	$	1,026	$	84	$	83	$	17	$	16	$	—	$	—	$	40	$	39	$	1,186	$	1,164
Structured		3,473		3,988		503		505		798		1,016		241		296		354		376		5,369		6,181
Total RMBS	$	4,518	$	5,014	$	587	$	588	$	815	$	1,032	$	241	$	296	$	394	$	415	$	6,555	$	7,345
Included in Total RMBS:
Sub-prime	$	408	$	590	$	—	$	—	$	56	$	56	$	241	$	296	$	6	$	8	$	711	$	950
Alt-A		630		775		51		48		157		186		—		—		2		2		840		1,011
Prime		3,480		3,649		536		540		602		790		—		—		386		405		5,004		5,384
Total RMBS	$	4,518	$	5,014	$	587	$	588	$	815	$	1,032	$	241	$	296	$	394	$	415	$	6,555	$	7,345

CMBS Distribution By Deal Coupon Type & Quality

	Fixed Rate				Adjustable/Floating Rate				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost
AAA	$	188	$	205	$	190	$	237	$	378	$	442
AA		59		76		33		49		92		125
A		54		83		11		15		65		98
BBB		—		—		47		73		47		73
<BBB & Equity Tranches		5		8		12		14		17		22
Total CMBS	$	306	$	372	$	293	$	388	$	599	$	760
Included in Total CMBS:
Pass-Thru	$	—	$	—	$	—	$	—	$	—	$	—
Structured		306		372		293		388		599		760
Total CMBS	$	306	$	372	$	293	$	388	$	599	$	760

ARM	— Adjustable rate mortgages
MBS	— Mortgage-backed securities

8

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of September 30, 2009
(In millions)

Other ABS Distribution By Collateral Type & Quality

	Auto Loans				Student Loans				Other				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost
AAA	$	234	$	232	$	102	$	128	$	180	$	171	$	516	$	531
AA		—		—		—		—		27		30		27		30
A		11		11		—		—		—		—		11		11
BBB		72		73		—		—		46		56		118		129
<BBB & Equity Tranches		—		—		—		—		—		—		—		—
Total Other ABS	$	317	$	316	$	102	$	128	$	253	$	257	$	672	$	701
Included in Total Other ABS:
Pass-Thru	$	72	$	73	$	—	$	—	$	8	$	7	$	80	$	80
Structured		245		243		102		128		245		250		592		621
Total Other ABS	$	317	$	316	$	102	$	128	$	253	$	257	$	672	$	701

9

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

THREE MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
SEPTEMBER 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2009			2008			% Change			2009			2008			% Change			2009			2008			% Change
Gross written premiums	$	711		$	804			(12	)%	$	1,242		$	1,290			(4	)%	$	1,953		$	2,094			(7	)%
Net written premiums		632			723			(13	)		845			875			(3	)		1,477			1,598			(8	)
Net earned premiums		702			762			(8	)		859			882			(3	)		1,561			1,644			(5	)
Net investment income		243			136			79			187			121			55			430			257			67
Other revenues		12			13			(8	)		54			59			(8	)		66			72			(8	)
Total operating revenues		957			911			5			1,100			1,062			4			2,057			1,973			4
Claims, benefits and expenses:
Net incurred claims and benefits		519			734			29			533			516			(3	)		1,052			1,250			16
Policyholders’ dividends		4			(10	)		(140	)		1			2			50			5			(8	)		(163	)
Amortization of deferred acquisition costs		169			174			3			191			177			(8	)		360			351			(3	)
Other insurance related expenses		95			87			(9	)		63			79			20			158			166			5
Other expenses		9			20			55			59			52			(13	)		68			72			6
Total claims, benefits and expenses		796			1,005			21			847			826			(3	)		1,643			1,831			10
Operating income (loss) from continuing operations before income tax		161			(94	)		N/M			253			236			7			414			142			192
Income tax (expense) benefit on operating income (loss)		(49	)		41			N/M			(81	)		(74	)		(9	)		(130	)		(33	)		N/M
Net operating income, after-tax, attributable to noncontrolling interests		—			—			N/M			(13	)		(17	)		24			(13	)		(17	)		24
Net operating income (loss) from continuing operations attributable to CNAF		112			(53	)		N/M			159			145			10			271			92			195
Net realized investment losses, net of participating policyholders’ interests		(69	)		(178	)		61			(35	)		(116	)		70			(104	)		(294	)		65
Income tax benefit on realized investment losses		24			63			(62	)		11			41			(73	)		35			104			(66	)
Net realized investment gains, after-tax, attributable to noncontrolling interests		—			—			N/M			(1	)		—			N/M			(1	)		—			N/M
Net realized investment losses attributable to CNAF		(45	)		(115	)		61			(25	)		(75	)		67			(70	)		(190	)		63
Net income (loss) from continuing operations attributable to CNAF	$	67		$	(168	)		140	%	$	134		$	70			91	%	$	201		$	(98	)		N/M	%
FINANCIAL RATIOS
Loss & LAE		74.0	%		96.3	%					62.1	%		58.5	%					67.4	%		76.0	%
Acquisition expense		21.2			20.3						19.3			18.7						20.2			19.4
Underwriting expense		16.5			14.1						10.3			10.3						13.1			12.1
Expense		37.7			34.4						29.6			29.0						33.3			31.5
Dividend		0.5			(1.4	)					0.2			0.3						0.3			(0.5	)
Combined ratio		112.2	%		129.3	%					91.9	%		87.8	%					101.0	%		107.0	%
RATIO IMPACTS
Impact of catastrophes
Pretax net accident year catastrophe losses incurred	$	20		$	236					$	3		$	12					$	23		$	248
Impact on loss & LAE ratio		2.9	%		31.0	%					0.4	%		1.3	%					1.5	%		15.1	%
Pretax assessments related to catastrophes	$	—		$	10					$	—		$	—					$	—		$	10
Impact on expense ratio		—	%		1.4	%					—	%		—	%					—	%		0.6	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & ALAE reserve development	$	(13	)	$	(4	)				$	(47	)	$	(68	)				$	(60	)	$	(72	)
Prior year premium development		12			3						—			(2	)					12			1
Other (1)		1			7						1			—						2			7
Total development & other	$	—		$	6					$	(46	)	$	(70	)				$	(46	)	$	(64	)
Impact of development & other on loss & LAE ratio		(0.4	)%		0.9	%					(5.5	)%		(7.9	)%					(3.3	)%		(3.9	)%

(1) Other includes the impacts of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.

10

CNA FINANCIAL CORPORATION
Financial Supplement
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations

THREE MONTHS ENDED	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
SEPTEMBER 30													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2009			2008			2009			2008			% Change			2009			2008			% Change			2009			2008			% Change
Net earned premiums	$	1,561		$	1,644		$	149		$	154			(3	)%	$	(3	)	$	1			N/M	%	$	1,707		$	1,799			(5	)%
Net investment income		430			257			169			135			25			61			47			30			660			439			50
Other revenues		66			72			2			(1	)		N/M			5			1			N/M			73			72			1
Total operating revenues		2,057			1,973			320			288			11			63			49			29			2,440			2,310			6
Claims, benefits and expenses:
Net incurred claims and benefits		1,052			1,250			199			294			32			25			(19	)		N/M			1,276			1,525			16
Policyholders’ dividends		5			(8	)		2			2			—			—			—			N/M			7			(6	)		N/M
Amortization of deferred acquisition costs		360			351			5			4			(25	)		—			—			N/M			365			355			(3	)
Other insurance related expenses		158			166			45			51			12			1			5			80			204			222			8
Other expenses		68			72			7			7			—			27			26			(4	)		102			105			3
Total claims, benefits and expenses		1,643			1,831			258			358			28			53			12			N/M			1,954			2,201			11
Operating income (loss) from continuing operations before income tax		414			142			62			(70	)		189			10			37			(73	)		486			109			N/M
Income tax (expense) benefit on operating income (loss)		(130	)		(33	)		(11	)		34			(132	)		(1	)		(11	)		91			(142	)		(10	)		N/M
Net operating (income) loss, after-tax, attributable to noncontrolling interests		(13	)		(17	)		—			—			N/M			—			1			N/M			(13	)		(16	)		19
Net operating income (loss) from continuing operations attributable to CNAF		271			92			51			(36	)		N/M			9			27			(67	)		331			83			N/M
Net realized investment gains (losses), net of participating policyholders’ interests		(104	)		(294	)		21			(298	)		107			(17	)		(59	)		71			(100	)		(651	)		85
Income tax (expense) benefit on realized investment gains (losses)		35			104			(7	)		104			(107	)		6			20			(70	)		34			228			(85	)
Net realized investment gains, after-tax, attributable to noncontrolling interests		(1	)		—			—			—			N/M			—			—			N/M			(1	)		—			N/M
Net realized investment gains (losses) attributable to CNAF		(70	)		(190	)		14			(194	)		107			(11	)		(39	)		72			(67	)		(423	)		84
Net income (loss) from continuing operations attributable to CNAF	$	201		$	(98	)	$	65		$	(230	)		128	%	$	(2	)	$	(12	)		83	%	$	264		$	(340	)		178	%

	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
Other Financial Data													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
Property & Casualty Company Information	2009			2008			2009			2008			% Change			2009			2008			% Change			2009			2008			% Change
Gross written premiums	$	1,953		$	2,094		$	140		$	164			(15	)%	$	2		$	125			(98	)%	$	2,095		$	2,383			(12	)%
Net written premiums		1,477			1,598			140			149			(6	)		—			1			N/M			1,617			1,748			(7	)
Net earned premiums		1,561			1,644			149			154			(3	)		(3	)		1			N/M			1,707			1,799			(5	)
FINANCIAL RATIOS
Loss & LAE		67.4	%		76.0	%		N/M	%		N/M	%					N/M	%		N/M	%					74.0	%		82.5	%
Acquisition expense		20.2			19.4			N/M			N/M						N/M			N/M						19.4			18.8
Underwriting expense		13.1			12.1			N/M			N/M						N/M			N/M						13.8			13.3
Expense		33.3			31.5			N/M			N/M						N/M			N/M						33.2			32.1
Dividend		0.3			(0.5	)		N/M			N/M						N/M			N/M						0.3			(0.5	)
Combined ratio		101.0	%		107.0	%		N/M	%		N/M	%					N/M	%		N/M	%					107.5	%		114.1	%

11

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

NINE MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
SEPTEMBER 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2009			2008			% Change			2009			2008			% Change			2009			2008			% Change
Gross written premiums	$	2,399		$	2,580			(7	)%	$	3,742		$	3,864			(3	)%	$	6,141		$	6,444			(5	)%
Net written premiums		2,156			2,342			(8	)		2,508			2,583			(3	)		4,664			4,925			(5	)
Net earned premiums		2,083			2,313			(10	)		2,505			2,614			(4	)		4,588			4,927			(7	)
Net investment income		615			499			23			483			408			18			1,098			907			21
Other revenues		41			42			(2	)		159			166			(4	)		200			208			(4	)
Total operating revenues		2,739			2,854			(4	)		3,147			3,188			(1	)		5,886			6,042			(3	)
Claims, benefits and expenses:
Net incurred claims and benefits		1,507			1,877			20			1,554			1,641			5			3,061			3,518			13
Policyholders’ dividends		6			(3	)		N/M			7			10			30			13			7			(86	)
Amortization of deferred acquisition costs		498			528			6			550			545			(1	)		1,048			1,073			2
Other insurance related expenses		239			193			(24	)		185			182			(2	)		424			375			(13	)
Other expenses		40			44			9			155			144			(8	)		195			188			(4	)
Total claims, benefits and expenses		2,290			2,639			13			2,451			2,522			3			4,741			5,161			8
Operating income from continuing operations before income tax		449			215			109			696			666			5			1,145			881			30
Income tax expense on operating income		(131	)		(49	)		(167	)		(207	)		(212	)		2			(338	)		(261	)		(30	)
Net operating income, after-tax, attributable to noncontrolling interests		—			—			N/M			(38	)		(40	)		5			(38	)		(40	)		5
Net operating income from continuing operations attributable to CNAF		318			166			92			451			414			9			769			580			33
Net realized investment losses, net of participating policyholders’ interests		(418	)		(254	)		(65	)		(247	)		(154	)		(60	)		(665	)		(408	)		(63	)
Income tax benefit on realized investment losses		146			89			64			80			55			45			226			144			57
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			N/M			—	��		—			N/M			—			—			N/M
Net realized investment losses attributable to CNAF		(272	)		(165	)		(65	)		(167	)		(99	)		(69	)		(439	)		(264	)		(66	)
Net income from continuing operations attributable to CNAF	$	46		$	1			N/M	%	$	284		$	315			(10)	%	$	330		$	316			4	%
FINANCIAL RATIOS
Loss & LAE		72.4	%		81.1	%					62.0	%		62.8	%					66.7	%		71.4	%
Acquisition expense		18.1			17.2						18.5			17.7						18.3			17.5
Underwriting expense		17.2			14.1						10.9			10.1						13.8			11.9
Expense		35.3			31.3						29.4			27.8						32.1			29.4
Dividend		0.3			(0.2	)					0.3			0.4						0.3			0.1
Combined ratio		108.0	%		112.2	%					91.7	%		91.0	%					99.1	%		100.9	%
RATIO IMPACTS
Impact of catastrophes
Pretax net accident year catastrophe losses incurred	$	72		$	334					$	7		$	14					$	79		$	348
Impact on loss & LAE ratio		3.5	%		14.5	%					0.3	%		0.5	%					1.7	%		7.1	%
Pretax assessments related to catastrophes	$	—		$	10					$	—		$	—					$	—		$	10
Impact on expense ratio		—	%		0.4	%					—	%		—	%					—	%		0.2	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & ALAE reserve development (1)	$	(123	)	$	(54	)				$	(128	)	$	(50	)				$	(251	)	$	(104	)
Prior year premium development		88			4						(3	)		(20	)					85			(16	)
Other (2)		12			22						(1	)		(5	)					11			17
Total development & other	$	(23	)	$	(28	)				$	(132	)	$	(75	)				$	(155	)	$	(103	)
Impact of development & other on loss & LAE ratio		(2.1	)%		(1.3	)%					(5.3	)%		(2.6	)%					(4.0	)%		(2.0	)%

(1)	In 2009, Standard Lines includes $64 million and Specialty Lines includes $4 million of favorable loss and LAE reserve development related to catastrophes in accident years 2005, 2007 and 2008. In 2008, Standard Lines includes $29 million of favorable loss & LAE reserve development related to the 2005 hurricanes.
(2)	Other includes the impacts of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.

12

CNA FINANCIAL CORPORATION
Financial Supplement
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations

NINE MONTHS ENDED	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
SEPTEMBER 30													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2009			2008			2009			2008			% Change			2009			2008			% Change			2009			2008			% Change
Net earned premiums	$	4,588		$	4,927		$	447		$	460			(3	)%	$	—		$	(1	)		N/M	%	$	5,035		$	5,386			(7	)%
Net investment income		1,098			907			496			376			32			161			166			(3	)		1,755			1,449			21
Other revenues		200			208			7			20			(65	)		6			12			(50	)		213			240			(11	)
Total operating revenues		5,886			6,042			950			856			11			167			177			(6	)		7,003			7,075			(1	)
Claims, benefits and expenses:
Net incurred claims and benefits		3,061			3,518			773			822			6			69			28			(146	)		3,903			4,368			11
Policyholders’ dividends		13			7			3			5			40			—			—			N/M			16			12			(33	)
Amortization of deferred acquisition costs		1,048			1,073			15			10			(50	)		—			—			N/M			1,063			1,083			2
Other insurance related expenses		424			375			138			152			9			1			5			80			563			532			(6	)
Other expenses		195			188			64			17			N/M			87			87			—			346			292			(18	)
Total claims, benefits and expenses		4,741			5,161			993			1,006			1			157			120			(31	)		5,891			6,287			6
Operating income (loss) from continuing operations before income tax		1,145			881			(43	)		(150	)		71			10			57			(82	)		1,112			788			41
Income tax (expense) benefit on operating income (loss)		(338	)		(261	)		46			81			(43	)		3			(14	)		121			(289	)		(194	)		(49	)
Net operating income, after-tax, attributable to noncontrolling interests		(38	)		(40	)		—			—			N/M			—			—			N/M			(38	)		(40	)		5
Net operating income (loss) from continuing operations attributable to CNAF		769			580			3			(69	)		104			13			43			(70	)		785			554			42
Net realized investment losses, net of participating policyholders’ interests		(665	)		(408	)		(156	)		(321	)		51			(108	)		(84	)		(29	)		(929	)		(813	)		(14	)
Income tax benefit on realized investment losses		226			144			55			112			(51	)		38			30			27			319			286			12
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			—			—			N/M			—			—			N/M			—			—			N/M
Net realized investment losses attributable to CNAF		(439	)		(264	)		(101	)		(209	)		52			(70	)		(54	)		(30	)		(610	)		(527	)		(16	)
Net income (loss) from continuing operations attributable to CNAF	$	330		$	316		$	(98	)	$	(278	)		65	%	$	(57	)	$	(11	)		N/M	%	$	175		$	27			N/M	%
	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
Other Financial Data													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
Property & Casualty Company Information	2009			2008			2009			2008			% Change			2009			2008			% Change			2009			2008			% Change
Gross written premiums	$	6,141		$	6,444		$	445		$	475			(6	)%	$	6		$	127			(95	)%	$	6,592		$	7,046			(6	)%
Net written premiums		4,664			4,925			441			458			(4	)		—			(2	)		N/M			5,105			5,381			(5	)
Net earned premiums		4,588			4,927			447			460			(3	)		—			(1	)		N/M			5,035			5,386			(7	)
FINANCIAL RATIOS
Loss & LAE		66.7	%		71.4	%		N/M	%		N/M	%					N/M	%		N/M	%					76.4	%		80.2	%
Acquisition expense		18.3			17.5			N/M			N/M						N/M			N/M						17.8			17.0
Underwriting expense		13.8			11.9			N/M			N/M						N/M			N/M						14.4			13.0
Expense		32.1			29.4			N/M			N/M						N/M			N/M						32.2			30.0
Dividend		0.3			0.1			N/M			N/M						N/M			N/M						0.3			0.1
Combined ratio		99.1	%		100.9	%		N/M	%		N/M	%					N/M	%		N/M	%					108.9	%		110.3	%

13

CNA FINANCIAL CORPORATION
Financial Supplement
Components of Pretax Net Investment Income

	Standard Lines
(In millions)	1Q08			2Q08		3Q08			4Q08			2008			1Q09			2Q09		3Q09		YTD2009
Income (loss) from limited partnerships	$	(23	)	$	22	$	(39	)	$	(159	)	$	(199	)	$	(36	)	$	88	$	77	$	129
Income (loss) from trading portfolio — Indexed Group Annuity		—			—		—			—			—			—			—		—		—
Income (loss) from trading portfolio — Other		(1	)		1		(1	)		(1	)		(2	)		—			4		7		11
Other investment income		188			176		176			167			707			156			160		159		475
Net investment income	$	164		$	199	$	136		$	7		$	506		$	120		$	252	$	243	$	615

	Specialty Lines
	1Q08			2Q08		3Q08			4Q08			2008			1Q09			2Q09		3Q09		YTD2009
Income (loss) from limited partnerships	$	(13	)	$	13	$	(24	)	$	(97	)	$	(121	)	$	(22	)	$	54	$	47	$	79
Income (loss) from trading portfolio — Indexed Group Annuity		—			—		—			—			—			—			—		—		—
Income (loss) from trading portfolio — Other		—			—		—			(1	)		(1	)		—			3		3		6
Other investment income		145			142		145			141			573			130			131		137		398
Net investment income	$	132		$	155	$	121		$	43		$	451		$	108		$	188	$	187	$	483

	P&C Operations
	1Q08			2Q08		3Q08			4Q08			2008			1Q09			2Q09		3Q09		YTD2009
Income (loss) from limited partnerships	$	(36	)	$	35	$	(63	)	$	(256	)	$	(320	)	$	(58	)	$	142	$	124	$	208
Income (loss) from trading portfolio — Indexed Group Annuity		—			—		—			—			—			—			—		—		—
Income (loss) from trading portfolio — Other		(1	)		1		(1	)		(2	)		(3	)		—			7		10		17
Other investment income		333			318		321			308			1,280			286			291		296		873
Net investment income	$	296		$	354	$	257		$	50		$	957		$	228		$	440	$	430	$	1,098

	Life & Group Non-Core
	1Q08			2Q08			3Q08			4Q08			2008			1Q09			2Q09		3Q09		YTD2009
Income (loss) from limited partnerships	$	4		$	5		$	(2	)	$	(12	)	$	(5	)	$	(2	)	$	—	$	1	$	(1	)
Income (loss) from trading portfolio — Indexed Group Annuity		(76	)		(5	)		(22	)		(43	)		(146	)		—			—		—		—
Income (loss) from trading portfolio — Other		—			—			—			—			—			—			—		—		—
Other investment income		156			157			159			163			635			161			168		168		497
Net investment income	$	84		$	157		$	135		$	108		$	484		$	159		$	168	$	169	$	496

	Corporate & Other Non-Core
	1Q08			2Q08		3Q08			4Q08			2008			1Q09			2Q09		3Q09		YTD2009
Income (loss) from limited partnerships	$	(7	)	$	6	$	(12	)	$	(41	)	$	(54	)	$	(10	)	$	23	$	20	$	33
Income (loss) from trading portfolio — Indexed Group Annuity		—			—		—			—			—			—			—		—		—
Income (loss) from trading portfolio — Other		—			—		—			—			—			—			1		2		3
Other investment income		61			59		59			53			232			43			43		39		125
Net investment income	$	54		$	65	$	47		$	12		$	178		$	33		$	67	$	61	$	161

	Total Operations
	1Q08			2Q08			3Q08			4Q08			2008			1Q09			2Q09		3Q09		YTD2009
Income (loss) from limited partnerships	$	(39	)	$	46		$	(77	)	$	(309	)	$	(379	)	$	(70	)	$	165	$	145	$	240
Income (loss) from trading portfolio — Indexed Group Annuity		(76	)		(5	)		(22	)		(43	)		(146	)		—			—		—		—
Income (loss) from trading portfolio — Other		(1	)		1			(1	)		(2	)		(3	)		—			8		12		20
Other investment income		550			534			539			524			2,147			490			502		503		1,495
Net investment income	$	434		$	576		$	439		$	170		$	1,619		$	420		$	675	$	660	$	1,755

14

CNA FINANCIAL CORPORATION
Financial Supplement
Statutory Data – Preliminary

PERIODS ENDED SEPTEMBER 30	Three Months									Nine Months
Income Statement	(Preliminary)						Fav / (Unfav)			(Preliminary)						Fav / (Unfav)
(In millions)	2009			2008			% Change			2009			2008			% Change
Combined Continental Casualty Companies
Gross written premiums	$	1,903		$	2,120			(10	)%	$	5,920		$	6,304			(6	)%
Net written premiums		1,430			1,516			(6	)		4,462			4,681			(5	)
Net earned premiums		1,315			1,388			(5	)		4,049			4,176			(3	)
Claim and claim adjustment expenses		1,013			1,292			(22	)		3,133			3,626			(14	)
Acquisition expenses		269			261			(3	)		771			740			(4	)
Underwriting expenses		200			189			(6	)		634			575			(10	)
Policyholders’ dividends		4			3			(33	)		11			10			(10	)
Underwriting loss		(171	)		(357	)		52			(500	)		(775	)		35
Net investment income		434			438			(1	)		1,251			1,364			(8	)
Other income (expenses)		11			17			(35	)		27			(31	)		187
Income tax (expense) benefit		12			95			(87	)		(45	)		(7	)		N/M
Net realized losses		(98	)		(485	)		80			(933	)		(621	)		(50	)
Net income (loss)	$	188		$	(292	)		164	%	$	(200	)	$	(70	)		(186	)%
Financial Ratios
Loss and LAE		77.1	%		93.1	%					77.4	%		86.8	%
Acquisition expense		18.8			17.2						17.3			15.8
Underwriting expense		13.9			12.5						14.1			12.4
Expense		32.7			29.7						31.4			28.2
Dividend		0.3			0.2						0.3			0.2
Combined ratio		110.1	%		123.0	%					109.1	%		115.2	%

SUPPLEMENTAL STATUTORY DATA
	(Preliminary)
(In millions)	September 30, 2009		December 31, 2008
Combined Continental Casualty Companies
Statutory surplus (1)	$	8,976	$	7,819
Life Company
Statutory surplus	$	462	$	487

(1) Surplus includes the Combined Continental Casualty Companies’ equity ownership of the life insurance subsidiary.

15

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Operations
Loss and LAE Ratio Analysis

	Standard Lines
	2009 YTD			2008 FY			2008 FY
	Evaluated at			Evaluated			Evaluated at
	9/30/09			at 12/31/08			9/30/09
Gross Accident Year		72.8	%		76.4	%		75.6	%
Impact of Reinsurance		1.7			2.2			2.5
Net Accident Year		74.5			78.6			78.1	%
Impact of Development and Other (1)(2)		(2.1	)		(3.2	)
Net Calendar Year		72.4	%		75.4	%

	Specialty Lines
	2009 YTD			2008 FY			2008 FY
	Evaluated at			Evaluated			Evaluated at
	9/30/09			at 12/31/08			9/30/09
Gross Accident Year		66.5	%		67.0	%		67.5	%
Impact of Reinsurance		0.8			0.3			0.7
Net Accident Year		67.3			67.3			68.2	%
Impact of Development and Other (1)		(5.3	)		(5.4	)
Net Calendar Year		62.0	%		61.9	%

	P&C Operations
	2009 YTD			2008 FY			2008 FY
	Evaluated at			Evaluated			Evaluated at
	9/30/09			at 12/31/08			9/30/09
Gross Accident Year		68.9	%		70.7	%		70.7	%
Impact of Reinsurance		1.8			1.9			2.2
Net Accident Year		70.7			72.6			72.9	%
Impact of Development and Other (1) (2)		(4.0	)		(4.4	)
Net Calendar Year		66.7	%		68.2	%

(1)

Other includes the impacts of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.

(2)

In 2008, the amount due from policyholders related to losses under deductible policies within Standard Lines was reduced by $90 million for insolvent insureds. The reduction of this amount, which is reflected as unfavorable net prior year reserve development, had no effect on 2008 results of operations as the Company had previously recognized provisions in prior years. These impacts were reported in Insurance claims and policyholders’ benefits in the 2008 Consolidated Statement of Operations.

16