EXHIBIT 11.1

                           CNA FINANCIAL CORPORATION
                 COMPUTATION OF NET INCOME PER COMMON SHARE



- - ------------------------------------------------------------------------------------------------------------
Period Ended June 30                                     Second Quarter                    Six Months       
(In millions, except per share data)                  1994            1993            1994            1993
- - ------------------------------------------------------------------------------------------------------------

Earnings per share:
                                                                                          
Net income (loss)................................    $(36.2)         $ 74.8          $(114.3)         $388.4 
Less preferred stock dividends...................       1.4             1.1              2.5             2.1
                                                      -----           -----           ------           -----
   Net income (loss) available to          
     common stockholders.........................    $(37.6)         $ 73.7          $(116.8)         $386.3
                                                      =====           =====           ======           =====

Weighted average shares outstanding..............      61.8            61.8             61.8            61.8
                                                      =====           =====           ======           =====

   Net income (loss) per common share............    $(.61)          $ 1.19          $ (1.89)         $ 6.25
                                                      =====           =====           ======           =====
- - ------------------------------------------------------------------------------------------------------------

                                      (28)