IT Transformation

12 Months Ended

Dec. 31, 2012

Note P. IT Transformation

In 2010, the Company commenced a program to significantly transform its IT organization and delivery model. A key initiative was moving to a managed services model which involved outsourcing the Company's infrastructure and application development functions to selected vendors that possess proven skills and scale. Total costs of the program were $37 million, of which $36 million were incurred in 2010. The costs by reportable segment for the year ended December 31, 2010 were as follows.

IT Transformation Costs by Segment



Year ended December 31
(In millions)	2010
CNA Specialty	$	8
CNA Commercial	15
Life & Group Non-Core	10
Corporate & Other Non-Core	3
Total IT Transformation Costs	$	36