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

EXHIBIT 99.1

CNA Financial Corporation

Supplemental Financial Information

Segment Financial Results For the Years Ended December 31, 2006 and 2005

and the Nine Months Ended September 30, 2007

CNA Financial Corporation
Table of Contents
Segment Financial Results For the Years Ended December 31, 2006 and 2005

and the Nine Months Ended September 30, 2007

CNA’s (the Company) core property and casualty commercial insurance operations are reported in two business segments: Standard Lines and Specialty Lines. As a result of the Company’s realignment of management responsibilities in the fourth quarter of 2007, the Company has revised its property and casualty segments. Standard Lines includes standard property and casualty coverages sold to small businesses and middle market entities and organizations in the U.S. primarily through an independent agency distribution system. In addition, Standard Lines also includes commercial insurance and risk management products sold to large corporations in the U.S. primarily through insurance brokers. Specialty Lines provides a broad array of professional, financial and specialty property and casualty products and services, including excess and surplus lines, primarily through insurance brokers and managing general underwriters. Additionally, Specialty Lines includes insurance coverages sold globally through the Company’s foreign operations (CNA Global). Previously, excess and surplus lines and CNA Global were included in Standard Lines.

Additionally, Standard Lines previously included other revenues and expenses related to claim services provided by CNA ClaimPlus, Inc. to other units within the Standard Lines segment because these revenues and expenses were eliminated at the consolidated level. These amounts are now eliminated within Standard Lines for all periods presented.

This Financial Supplement presents the segment financial results for each of the quarters in and for the nine month period ended September 30, 2007, each of the four quarters in the year ended December 31, 2006 and the twelve month periods ended December 31, 2006 and December 31, 2005 as if the current segment changes occurred as of the beginning of the earliest period presented.

	Page
Definitions and Presentation		i
Segment results for each of the three quarters in the period ended September 30, 2007 and the nine months ended September 30, 2007		1-6
Segment results for each of the four quarters of 2006 and the year ended December 31, 2006		7-12
Segment results for the year ended December 31, 2005		13-14

CNA Financial Corporation
Supplemental Financial Information

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 (A&E).

• 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 2006 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.

• Certain immaterial differences are due to rounding.

• N/M = Not Meaningful

i

CNA FINANCIAL CORPORATION
Financial Supplement
Standard Lines

	2007
										Nine months ended
(In millions)	Q1			Q2			Q3			September 30, 2007
Gross written premiums	$	948		$	992		$	856		$	2,796
Net written premiums		867			904			753			2,524
Net earned premiums		863			842			841			2,546
Net investment income		220			235			209			664
Other revenues		11			12			9			32
Total operating revenues		1,094			1,089			1,059			3,242
Claims, benefits and expenses:
Net incurred claims and benefits		593			581			511			1,685
Policyholders’ dividends		3			(4	)		4			3
Amortization of deferred acquisition costs		194			191			190			575
Other insurance related expenses		65			96			82			243
Restructuring and other related charges		—			—			—			—
Other expenses		10			14			12			36
Total claims, benefits and expenses		865			878			799			2,542
Operating income before income tax and minority interest		229			211			260			700
Income tax expense on operating income		(75	)		(65	)		(82	)		(222	)
Minority interest		—			—			���			—
Net operating income from continuing operations		154			146			178			478
Realized investment losses, net of participating policyholders’ and minority interests		(24	)		(63	)		(29	)		(116	)
Income tax benefit on realized investment losses		9			21			10			40
Net income from continuing operations	$	139		$	104		$	159		$	402
FINANCIAL RATIOS
Loss & LAE		68.7	%		69.0	%		60.9	%		66.2	%
Acquisition expense		17.0			20.1			18.6			18.6
Underwriting expense		13.0			13.9			13.7			13.5
Expense		30.0			34.0			32.3			32.1
Dividend		0.4			(0.4	)		0.4			0.1
Combined ratio		99.1	%		102.6	%		93.6	%		98.4	%
LOSS RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	30		$	12		$	10		$	52
Impact on loss & LAE ratio		3.5	%		1.4	%		1.2	%		2.0	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development	$	13		$	(20	)	$	(67	)	$	(74	)
Prior year premium development		(26	)		16			(5	)		(15	)
Other (1)		5			7			8			20
Total development & other	$	(8	)	$	3		$	(64	)	$	(69	)
Impact of development & other on loss & LAE ratio		—	%		(0.1	)%		(7.5	)%		(2.6	)%

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

1

CNA FINANCIAL CORPORATION
Financial Supplement
Specialty Lines

	2007
											Nine months ended
(In millions)	Q1			Q2			Q3				September 30, 2007
Gross written premiums	$	1,412		$	1,379		$	1,337			$	4,128
Net written premiums		864			869			886				2,619
Net earned premiums		845			870			885				2,600
Net investment income		149			162			152				463
Other revenues		42			47			50				139
Total operating revenues		1,036			1,079			1,087				3,202
Claims, benefits and expenses:
Net incurred claims and benefits		543			531			556				1,630
Policyholders’ dividends		3			1			1				5
Amortization of deferred acquisition costs		182			177			190		��		549
Other insurance related expenses		41			48			45				134
Restructuring and other related charges		—			—			—				—
Other expenses		42			39			44				125
Total claims, benefits and expenses		811			796			836				2,443
Operating income before income tax and minority interest		225			283			251				759
Income tax expense on operating income		(73	)		(94	)		(82	)			(249	)
Minority interest		(10	)		(10	)		(16	)			(36	)
Net operating income from continuing operations		142			179			153				474
Realized investment losses, net of participating policyholders’ and minority interests		(14	)		(35	)		(13	)			(62	)
Income tax benefit on realized investment losses		5			12			4				21
Net income from continuing operations	$	133		$	156		$	144			$	433
FINANCIAL RATIOS
Loss & LAE		64.2	%		61.1	%		62.8	%			62.7	%
Acquisition expense		16.9			16.1			17.0				16.6
Underwriting expense		9.6			9.6			9.6				9.7
Expense		26.5			25.7			26.6				26.3
Dividend		0.3			0.2			0.2				0.2
Combined ratio		91.0	%		87.0	%		89.6	%			89.2	%
LOSS RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	2		$	—		$	—			$	2
Impact on loss & LAE ratio		0.3	%		—	%		—	%			0.1	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development	$	7		$	(14	)	$	3			$	(4	)
Prior year premium development		(10	)		—			(3	)			(13	)
Other (1)		—			—			—				—
Total development & other	$	(3	)	$	(14	)	$	—			$	(17	)
Impact of development & other on loss & LAE ratio		0.1	%		(1.6	)%		0.2	%			(0.4	)%

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

2

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Operations

	2007
										Nine months ended
(In millions)	Q1			Q2			Q3			September 30, 2007
Gross written premiums	$	2,360		$	2,371		$	2,193		$	6,924
Net written premiums		1,731			1,773			1,639			5,143
Net earned premiums		1,708			1,712			1,726			5,146
Net investment income		369			397			361			1,127
Other revenues		53			59			59			171
Total operating revenues		2,130			2,168			2,146			6,444
Claims, benefits and expenses:
Net incurred claims and benefits		1,136			1,112			1,067			3,315
Policyholders’ dividends		6			(3	)		5			8
Amortization of deferred acquisition costs		376			368			380			1,124
Other insurance related expenses		106			144			127			377
Restructuring and other related charges		—			—			—			—
Other expenses		52			53			56			161
Total claims, benefits and expenses		1,676			1,674			1,635			4,985
Operating income before income tax and minority interest		454			494			511			1,459
Income tax expense on operating income		(148	)		(159	)		(164	)		(471	)
Minority interest		(10	)		(10	)		(16	)		(36	)
Net operating income from continuing operations		296			325			331			952
Realized investment losses, net of participating policyholders’ and minority interests		(38	)		(98	)		(42	)		(178	)
Income tax benefit on realized investment losses		14			33			14			61
Net income from continuing operations	$	272		$	260		$	303		$	835
FINANCIAL RATIOS
Loss & LAE		66.5	%		64.9	%		61.9	%		64.4	%
Acquisition expense		16.9			18.1			17.8			17.6
Underwriting expense		11.4			11.8			11.6			11.6
Expense		28.3			29.9			29.4			29.2
Dividend		0.3			(0.1	)		0.3			0.2
Combined ratio		95.1	%		94.7	%		91.6	%		93.8	%
LOSS RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	32		$	12		$	10		$	54
Impact on loss & LAE ratio		1.9	%		0.7	%		0.6	%		1.1	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development	$	20		$	(34	)	$	(64	)	$	(78	)
Prior year premium development		(36	)		16			(8	)		(28	)
Other (1)		5			7			8			20
Total development & other	$	(11	)	$	(11	)	$	(64	)	$	(86	)
Impact of development & other on loss & LAE ratio		0.1	%		(1.0	)%		(3.5	)%		(1.5	)%

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

3

CNA FINANCIAL CORPORATION
Financial Supplement
Life & Group Non-Core

	2007
										Nine months ended
(In millions)	Q1			Q2			Q3			September 30, 2007
Net earned premiums	$	156		$	157		$	156		$	469
Net investment income		161			188			145			494
Other revenues		12			6			16			34
Total operating revenues		329			351			317			997
Claims, benefits and expenses:
Net incurred claims and benefits		273			326			463			1,062
Policyholders’ dividends		(1	)		1			—			—
Amortization of deferred acquisition costs		5			4			4			13
Other insurance related expenses		51			44			48			143
Restructuring and other related charges		—			—			—			—
Other expenses		9			8			17			34
Total claims, benefits and expenses		337			383			532			1,252
Operating loss before income tax and minority interest		(8	)		(32	)		(215	)		(255	)
Income tax benefit on operating loss		10			19			84			113
Minority interest		—			—			—			—
Net operating income (loss) from continuing operations		2			(13	)		(131	)		(142	)
Realized investment gains (losses), net of participating policyholders’ and minority interests		1			(18	)		(9	)		(26	)
Income tax benefit on realized investment gains (losses)		—			6			3			9
Net income (loss) from continuing operations	$	3		$	(25	)	$	(137	)	$	(159	)

4

CNA FINANCIAL CORPORATION
Financial Supplement
Corporate & Other Non-Core

	2007
										Nine months ended
(In millions)	Q1			Q2			Q3			September 30, 2007
Net earned premiums	$	(1	)	$	3		$	—		$	2
Net investment income		78			86			74			238
Other revenues		2			—			4			6
Total operating revenues		79			89			78			246
Claims, benefits and expenses:
Net incurred claims and benefits		34			37			40			111
Policyholders’ dividends		—			—			—			—
Amortization of deferred acquisition costs		—			—			—			—
Other insurance related expenses		3			10			—			13
Restructuring and other related charges		—			—			—			—
Other expenses		31			36			31			98
Total claims, benefits and expenses		68			83			71			222
Operating income before income tax and minority interest		11			6			7			24
Income tax (expense) benefit on operating income		(2	)		1			5			4
Minority interest		—			(1	)		—			(1	)
Net operating income from continuing operations		9			6			12			27
Realized investment gains (losses), net of participating policyholders’ and minority interests		16			(23	)		(6	)		(13	)
Income tax (expense) benefit on realized investment gains (losses)		(6	)		9			2			5
Net income (loss) from continuing operations	$	19		$	(8	)	$	8		$	19

5

CNA FINANCIAL CORPORATION
Financial Supplement
Results of Total Continuing Operations

	2007
										Nine months ended
(In millions)	Q1			Q2			Q3			September 30, 2007
Net earned premiums	$	1,863		$	1,872		$	1,882		$	5,617
Net investment income		608			671			580			1,859
Other revenues		67			65			79			211
Total operating revenues		2,538			2,608			2,541			7,687
Claims, benefits and expenses:
Net incurred claims and benefits		1,443			1,475			1,570			4,488
Policyholders’ dividends		5			(2	)		5			8
Amortization of deferred acquisition costs		381			372			384			1,137
Other insurance related expenses		160			198			175			533
Restructuring and other related charges		—			—			—			—
Other expenses		92			97			104			293
Total claims, benefits and expenses		2,081			2,140			2,238			6,459
Operating income before income tax and minority interest		457			468			303			1,228
Income tax expense on operating income		(140	)		(139	)		(75	)		(354	)
Minority interest		(10	)		(11	)		(16	)		(37	)
Net operating income from continuing operations		307			318			212			837
Realized investment losses, net of participating policyholders’ and minority interests		(21	)		(139	)		(57	)		(217	)
Income tax benefit on realized investment losses		8			48			19			75
Net income from continuing operations	$	294		$	227		$	174		$	695

6

CNA FINANCIAL CORPORATION
Financial Supplement
Standard Lines

	2006
													Twelve months ended
(In millions)	Q1			Q2			Q3			Q4			December 31, 2006
Gross written premiums	$	988		$	1,055		$	1,007		$	918		$	3,968
Net written premiums		880			972			913			833			3,598
Net earned premiums		857			901			914			885			3,557
Net investment income		192			201			202			245			840
Other revenues		4			3			3			34			44
Total operating revenues		1,053			1,105			1,119			1,164			4,441
Claims, benefits and expenses:
Net incurred claims and benefits		625			613			642			699			2,579
Policyholders’ dividends		4			4			4			6			18
Amortization of deferred acquisition costs		195			199			211			200			805
Other insurance related expenses		76			88			64			91			319
Restructuring and other related charges		—			—			—			—			—
Other expenses		5			3			3			55			66
Total claims, benefits and expenses		905			907			924			1,051			3,787
Operating income before income tax and minority interest		148			198			195			113			654
Income tax expense on operating income		(44	)		(65	)		(62	)		(37	)		(208	)
Minority interest		—			—			—			—			—
Net operating income from continuing operations		104			133			133			76			446
Realized investment gains (losses), net of participating policyholders’ and minority interests		10			(32	)		17			77			72
Income tax (expense) benefit on realized investment gains (losses)		(3	)		11			(6	)		(26	)		(24	)
Net income from continuing operations	$	111		$	112		$	144		$	127		$	494
FINANCIAL RATIOS
Loss & LAE		73.0	%		67.9	%		70.3	%		79.0	%		72.5	%
Acquisition expense		18.6			19.7			17.0			18.7			18.5
Underwriting expense		13.1			12.2			13.1			14.1			13.1
Expense		31.7			31.9			30.1			32.8			31.6
Dividend		0.5			0.4			0.5			0.5			0.5
Combined ratio		105.2	%		100.2	%		100.9	%		112.3	%		104.6	%
LOSS RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	12		$	5		$	21		$	16		$	54
Impact on loss & LAE ratio		1.4	%		0.6	%		2.3	%		1.8	%		1.5	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development	$	42		$	14		$	16		$	136		$	208
Prior year premium development		(20	)		(30	)		(15	)		7			(58	)
Other (1)		15			15			13			(53	)		(10	)
Total development & other	$	37		$	(1	)	$	14		$	90		$	140
Impact of development & other on loss & LAE ratio		5.1	%		0.9	%		2.3	%		9.9	%		4.5	%

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

7

CNA FINANCIAL CORPORATION
Financial Supplement
Specialty Lines

	2006
													Twelve months ended
(In millions)	Q1			Q2			Q3			Q4			December 31, 2006
Gross written premiums	$	1,398		$	1,233		$	1,364		$	1,324		$	5,319
Net written premiums		878			816			883			854			3,431
Net earned premiums		857			828			868			858			3,411
Net investment income		123			136			138			157			554
Other revenues		36			38			39			43			156
Total operating revenues		1,016			1,002			1,045			1,058			4,121
Claims, benefits and expenses:
Net incurred claims and benefits		527			516			531			486			2,060
Policyholders’ dividends		1			1			1			1			4
Amortization of deferred acquisition costs		170			170			175			199			714
Other insurance related expenses		62			56			56			45			219
Restructuring and other related charges		—			—			—			—			—
Other expenses		33			39			40			39			151
Total claims, benefits and expenses		793			782			803			770			3,148
Operating income before income tax and minority interest		223			220			242			288			973
Income tax expense on operating income		(71	)		(66	)		(80	)		(78	)		(295	)
Minority interest		(9	)		(10	)		(13	)		(11	)		(43	)
Net operating income from continuing operations		143			144			149			199			635
Realized investment gains (losses), net of participating policyholders’ and minority interests		6			(18	)		7			37			32
Income tax (expense) benefit on realized investment gains (losses)		(2	)		6			(2	)		(9	)		(7	)
Net income from continuing operations	$	147		$	132		$	154		$	227		$	660
FINANCIAL RATIOS
Loss & LAE		61.5	%		62.4	%		61.0	%		56.8	%		60.4	%
Acquisition expense		18.1			18.4			17.3			18.0			17.9
Underwriting expense		8.9			8.9			9.4			10.3			9.5
Expense		27.0			27.3			26.7			28.3			27.4
Dividend		0.1			0.1			0.1			0.1			0.1
Combined ratio		88.6	%		89.8	%		87.8	%		85.2	%		87.9	%
LOSS RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	—		$	1		$	1		$	3		$	5
Impact on loss & LAE ratio		—	%		0.1	%		0.1	%		0.4	%		0.1	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development	$	22		$	(11	)	$	(14	)	$	(58	)	$	(61	)
Prior year premium development		(37	)		8			2			22			(5	)
Other (1)		(1	)		—			—			—			(1	)
Total development & other	$	(16	)	$	(3	)	$	(12	)	$	(36	)	$	(67	)
Impact of development & other on loss & LAE ratio		(0.2	)%		(0.7	)%		(1.6	)%		(5.1	)%		(1.9	)%

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

8

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Operations

	2006
													Twelve months ended
(In millions)	Q1			Q2			Q3			Q4			December 31, 2006
Gross written premiums	$	2,386		$	2,288		$	2,371		$	2,242		$	9,287
Net written premiums		1,758			1,788			1,796			1,687			7,029
Net earned premiums		1,714			1,729			1,782			1,743			6,968
Net investment income		315			337			340			402			1,394
Other revenues		40			41			42			77			200
Total operating revenues		2,069			2,107			2,164			2,222			8,562
Claims, benefits and expenses:
Net incurred claims and benefits		1,152			1,129			1,173			1,185			4,639
Policyholders’ dividends		5			5			5			7			22
Amortization of deferred acquisition costs		365			369			386			399			1,519
Other insurance related expenses		138			144			120			136			538
Restructuring and other related charges		—			—			—			—			—
Other expenses		38			42			43			94			217
Total claims, benefits and expenses		1,698			1,689			1,727			1,821			6,935
Operating income before income tax and minority interest		371			418			437			401			1,627
Income tax expense on operating income		(115	)		(131	)		(142	)		(115	)		(503	)
Minority interest		(9	)		(10	)		(13	)		(11	)		(43	)
Net operating income from continuing operations		247			277			282			275			1,081
Realized investment gains (losses), net of participating policyholders’ and minority interests		16			(50	)		24			114			104
Income tax (expense) benefit on realized investment gains (losses)		(5	)		17			(8	)		(35	)		(31	)
Net income from continuing operations	$	258		$	244		$	298		$	354		$	1,154
FINANCIAL RATIOS
Loss & LAE		67.2	%		65.3	%		65.8	%		68.0	%		66.6	%
Acquisition expense		18.3			19.1			17.1			18.3			18.2
Underwriting expense		11.1			10.5			11.3			12.4			11.3
Expense		29.4			29.6			28.4			30.7			29.5
Dividend		0.3			0.3			0.3			0.3			0.3
Combined ratio		96.9	%		95.2	%		94.5	%		99.0	%		96.4	%
LOSS RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	12		$	6		$	22		$	19		$	59
Impact on loss & LAE ratio		0.7	%		0.3	%		1.3	%		1.1	%		0.9	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development	$	64		$	3		$	2		$	78		$	147
Prior year premium development		(57	)		(22	)		(13	)		29			(63	)
Other (1)		14			15			13			(53	)		(11	)
Total development & other	$	21		$	(4	)	$	2		$	54		$	73
Impact of development & other on loss & LAE ratio		2.4	%		0.2	%		0.4	%		2.5	%		1.4	%

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

9

CNA FINANCIAL CORPORATION
Financial Supplement
Life & Group Non-Core

	2006
													Twelve months ended
(In millions)	Q1			Q2			Q3			Q4			December 31, 2006
Net earned premiums	$	163		$	159		$	160		$	159		$	641
Net investment income		187			138			179			194			698
Other revenues		12			24			8			22			66
Total operating revenues		362			321			347			375			1,405
Claims, benefits and expenses:
Net incurred claims and benefits		306			266			314			309			1,195
Policyholders’ dividends		—			1			(1	)		—			—
Amortization of deferred acquisition costs		4			4			4			2			14
Other insurance related expenses		53			40			48			60			201
Restructuring and other related charges		—			—			—			—			—
Other expenses		13			13			14			18			58
Total claims, benefits and expenses		376			324			379			389			1,468
Operating loss before income tax and minority interest		(14	)		(3	)		(32	)		(14	)		(63	)
Income tax benefit on operating loss		11			8			17			13			49
Minority interest		—			—			—			—			—
Net operating income (loss) from continuing operations		(3	)		5			(15	)		(1	)		(14	)
Realized investment gains (losses), net of participating policyholders’ and minority interests		(12	)		(34	)		(10	)		6			(50	)
Income tax (expense) benefit on realized investment gains (losses)		5			11			3			(2	)		17
Net income (loss) from continuing operations	$	(10	)	$	(18	)	$	(22	)	$	3		$	(47	)

10

CNA FINANCIAL CORPORATION
Financial Supplement
Corporate & Other Non-Core

	2006
													Twelve months ended
(In millions)	Q1			Q2			Q3			Q4			December 31, 2006
Net earned premiums	$	(8	)	$	4		$	1		$	(3	)	$	(6	)
Net investment income		68			77			81			94			320
Other revenues		1			1			6			1			9
Total operating revenues		61			82			88			92			323
Claims, benefits and expenses:
Net incurred claims and benefits		29			31			31			100			191
Policyholders’ dividends		—			—			—			—			—
Amortization of deferred acquisition costs		1			(1	)		—			1			1
Other insurance related expenses		15			(2	)		7			(2	)		18
Restructuring and other related charges		—			(13	)		—			—			(13	)
Other expenses		30			33			27			36			126
Total claims, benefits and expenses		75			48			65			135			323
Operating income (loss) before income tax and minority interest		(14	)		34			23			(43	)		—
Income tax (expense) benefit on operating income (loss)		4			(11	)		(7	)		18			4
Minority interest		—			—			—			(1	)		(1	)
Net operating income (loss) from continuing operations		(10	)		23			16			(26	)		3
Realized investment gains (losses), net of participating policyholders’ and minority interests		5			(14	)		7			34			32
Income tax (expense) benefit on realized investment gains (losses)		(8	)		6			6			(9	)		(5	)
Net income (loss) from continuing operations	$	(13	)	$	15		$	29		$	(1	)	$	30

11

CNA FINANCIAL CORPORATION
Financial Supplement
Results of Total Continuing Operations

	2006
													Twelve months ended
(In millions)	Q1			Q2			Q3			Q4			December 31, 2006
Net earned premiums	$	1,869		$	1,892		$	1,943		$	1,899		$	7,603
Net investment income		570			552			600			690			2,412
Other revenues		53			66			56			100			275
Total operating revenues		2,492			2,510			2,599			2,689			10,290
Claims, benefits and expenses:
Net incurred claims and benefits		1,487			1,426			1,518			1,594			6,025
Policyholders’ dividends		5			6			4			7			22
Amortization of deferred acquisition costs		370			372			390			402			1,534
Other insurance related expenses		206			182			175			194			757
Restructuring and other related charges		—			(13	)		—			—			(13	)
Other expenses		81			88			84			148			401
Total claims, benefits and expenses		2,149			2,061			2,171			2,345			8,726
Operating income before income tax and minority interest		343			449			428			344			1,564
Income tax expense on operating income		(100	)		(134	)		(132	)		(84	)		(450	)
Minority interest		(9	)		(10	)		(13	)		(12	)		(44	)
Net operating income from continuing operations		234			305			283			248			1,070
Realized investment gains (losses), net of participating policyholders’ and minority interests		9			(98	)		21			154			86
Income tax (expense) benefit on realized investment gains (losses)		(8	)		34			1			(46	)		(19	)
Net income from continuing operations	$	235		$	241		$	305		$	356		$	1,137

12

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

Year ended December 31, 2005
(In millions)	Standard Lines			Specialty Lines			P&C Operations
Gross written premiums	$	3,962		$	4,971		$	8,933
Net written premiums		3,473			3,372			6,845
Net earned premiums		3,518			3,367			6,885
Net investment income		632			416			1,048
Other revenues		17			140			157
Total operating revenues		4,167			3,923			8,090
Claims, benefits and expenses:
Net incurred claims and benefits		3,176			2,298			5,474
Policyholders’ dividends		19			4			23
Amortization of deferred acquisition costs		816			702			1,518
Other insurance related expenses		338			221			559
Restructuring and other related charges		—			—			—
Other expenses		23			130			153
Total claims, benefits and expenses		4,372			3,355			7,727
Operating income (loss) before income tax and minority interest		(205	)		568			363
Income tax (expense) benefit on operating income (loss)		118			(162	)		(44	)
Minority interest		—			(24	)		(24	)
Net operating income (loss) from continuing operations		(87	)		382			295
Realized investment gains, net of participating policyholders’ and minority interests		30			4			34
Income tax expense on realized investment gains		(11	)		(2	)		(13	)
Net income (loss) from continuing operations	$	(68	)	$	384		$	316
FINANCIAL RATIOS
Loss & LAE		90.3	%		68.3	%		79.5	%
Acquisition expense		20.3			19.1			19.7
Underwriting expense		12.4			8.3			10.5
Expense		32.7			27.4			30.2
Dividend		0.6			0.1			0.3
Combined ratio		123.6	%		95.8	%		110.0	%
LOSS RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	470		$	23		$	493
Impact on loss & LAE ratio		13.9	%		0.7	%		7.4	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development	$	433		$	173		$	606
Prior year premium development		(30	)		(70	)		(100	)
Other (1)		34			(24	)		10
Total development & other	$	437		$	79		$	516
Impact of development & other on loss & LAE ratio		12.7	%		3.2	%		7.9	%

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

13

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

Year ended December 31, 2005
(In millions)	P&C Operations			Life & Group Non-Core			Corporate & Other Non-Core			Total Continuing Operations
Net earned premiums	$	6,885		$	704		$	(20	)	$	7,569
Net investment income		1,048			593			251			1,892
Other revenues		157			95			159			411
Total operating revenues		8,090			1,392			390			9,872
Claims, benefits and expenses:
Net incurred claims and benefits		5,474			1,160			341			6,975
Policyholders’ dividends		23			1			—			24
Amortization of deferred acquisition costs		1,518			22			3			1,543
Other insurance related expenses		559			257			13			829
Restructuring and other related charges		—			—			—			—
Other expenses		153			61			115			329
Total claims, benefits and expenses		7,727			1,501			472			9,700
Operating income (loss) before income tax and minority interest		363			(109	)		(82	)		172
Income tax benefit on operating income (loss)		(44	)		58			91			105
Minority interest		(24	)		—			—			(24	)
Net operating income (loss) from continuing operations		295			(51	)		9			253
Realized investment losses, net of participating policyholders’ and minority interests		34			(30	)		(14	)		(10	)
Income tax benefit on realized investment losses		(13	)		11			2			—
Net income (loss) from continuing operations	$	316		$	(70	)	$	(3	)	$	243

14