Exhibit

CNA Financial Corporation

Supplemental Financial Information

March 31, 2018

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 Statement 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)	2018			2017			Change
Revenues:
Net earned premiums	$	1,785		$	1,645		9		%
Net investment income	490			545			(10	)
Net realized investment gains (losses):
Other-than-temporary impairment (OTTI) losses	(6		)	(2		)
Other net realized investment gains (losses)	18			38
Net realized investment gains (losses)	12			36
Non-insurance warranty revenue	238			93
Other revenues	10			11
Total revenues	2,535			2,330			9
Claims, Benefits and Expenses:
Insurance claims and policyholders' benefits	1,339			1,293
Amortization of deferred acquisition costs	296			305
Non-insurance warranty expense	216			70
Other operating expenses	303			276
Interest	35			43
Total claims, benefits and expenses	2,189			1,987			(10	)
Income (loss) before income tax	346			343
Income tax (expense) benefit	(55		)	(83		)
Net income (loss)	$	291		$	260		12		%

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



Three months ended March 31
(In millions, except per share data)	2018			2017
Components of Income (Loss)
Core income (loss)	$	281		$	235
Net realized investment gains (losses)	10			25
Net income (loss)	$	291		$	260

Diluted Earnings (Loss) Per Common Share
Core income (loss)	$	1.03		$	0.87
Net realized investment gains (losses)	0.04			0.09
Diluted earnings (loss) per share	$	1.07		$	0.96

Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic	271.4			270.7
Diluted	272.4			271.7

Return on Equity
Net income (loss) ⁽¹⁾	9.8		%	8.8		%
Core income (loss) ⁽²⁾	9.3			7.9

(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.

Selected Balance Sheet Data and Statement of Cash Flows Data



(In millions, except per share data)	March 31, 2018			December 31, 2017
Total investments	$	45,535		$	46,870
Reinsurance receivables, net of allowance for uncollectible receivables	4,408			4,261
Total assets	57,649			56,567
Insurance reserves	37,106			37,212
Debt	2,709			2,858
Total liabilities	46,224			44,323
Accumulated other comprehensive income (loss) ⁽¹⁾	(400		)	32
Total stockholders' equity	11,425			12,244

Book value per common share	$	42.10		$	45.15
Book value per common share excluding AOCI	$	43.57		$	45.02

Outstanding shares of common stock (in millions of shares)	271.4			271.2

Statutory capital and surplus - Combined Continental Casualty Companies ⁽²⁾	$	10,386		$	10,726



Three months ended March 31	2018			2017
Net cash flows provided (used) by operating activities	$	218		$	282
Net cash flows provided (used) by investing activities	489			354
Net cash flows provided (used) by financing activities	(781		)	(609		)
Net cash flows provided (used) by operating, investing and financing activities	$	(74	)	$	27

(1) As of March 31, 2018 and December 31, 2017, the net unrealized gains on investments included in AOCI were net of after-tax Shadow Adjustments of $1,338 million and $1,411 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, 2018 is preliminary.

Property & Casualty - Results of Operations



Three months ended March 31
(In millions)	2018				2017				Change
Gross written premiums	$	2,991			$	2,752			9		%
Net written premiums	1,813				1,632				11

Net earned premiums	1,651				1,512				9
Net investment income	285				343
Non-insurance warranty revenue	238				93
Other revenues	9				10
Total operating revenues	2,183				1,958				11
Insurance claims and policyholders' benefits	995				942
Amortization of deferred acquisition costs	296				305
Other insurance related expenses	247				222
Non-insurance warranty expense	216				70
Other expenses	18				19
Total claims, benefits and expenses	1,772				1,558				(14	)
Core income (loss) before income tax	411				400
Income tax (expense) benefit on core income (loss)	(84		)		(132		)
Core income (loss)	$	327			$	268			22		%

Other Performance Metrics
Underwriting gain (loss)	$	113			$	43			163		%

Loss & LAE ratio	59.9			%	62.0			%	2.1		pts
Acquisition expense ratio	19.4				19.8				0.4
Underwriting expense ratio	13.4				15.1				1.7
Expense ratio	32.8				34.9				2.1
Dividend ratio	0.4				0.3				(0.1	)
Combined ratio	93.1			%	97.2			%	4.1
Combined ratio excluding catastrophes and development	93.2			%	97.4			%	4.2		pts

Net accident year catastrophe losses incurred	$	34			$	34
Effect on loss & LAE ratio	2.1			%	2.2			%	0.1		pts

Net prior year development and other: (favorable) / unfavorable	$	(36	)		$	(27	)
Effect on loss & LAE ratio	(2.2		)	%	(2.4		)	%	(0.2	)	pts

Rate	2			%	1			%	1		pts
Renewal premium change	4			%	4			%	—		pts
Retention	83			%	85			%	(2	)	pts
New business	$	355			$	260			37		%

Specialty - Results of Operations



Three months ended March 31
(In millions)	2018				2017				Change
Gross written premiums	$	1,771			$	1,738			2		%
Net written premiums	686				670				2

Net earned premiums	672				654				3
Net investment income	122				148
Non-insurance warranty revenue	238				93
Other revenues	1				1
Total operating revenues	1,033				896				15
Insurance claims and policyholders' benefits	380				401
Amortization of deferred acquisition costs	145				142
Other insurance related expenses	64				67
Non-insurance warranty expense	216				70
Other expenses	11				10
Total claims, benefits and expenses	816				690				(18	)
Core income (loss) before income tax	217				206
Income tax (expense) benefit on core income (loss)	(46		)		(69		)
Core income (loss)	$	171			$	137			25		%

Other Performance Metrics
Underwriting gain (loss)	$	83			$	44			89		%

Loss & LAE ratio	56.3			%	61.2			%	4.9		pts
Acquisition expense ratio	20.1				19.9				(0.2	)
Underwriting expense ratio	10.9				12.0				1.1
Expense ratio	31.0				31.9				0.9
Dividend ratio	0.2				0.1				(0.1	)
Combined ratio	87.5			%	93.2			%	5.7
Combined ratio excluding catastrophes and development	91.5			%	94.9			%	3.4		pts

Net accident year catastrophe losses incurred	$	3			$	4
Effect on loss & LAE ratio	0.5			%	0.6			%	0.1		pts

Net prior year development and other: (favorable) / unfavorable	$	(30	)		$	(17	)
Effect on loss & LAE ratio	(4.5		)	%	(2.3		)	%	2.2		pts

Rate	2			%	1			%	1		pts
Renewal premium change	3			%	4			%	(1	)	pts
Retention	85			%	88			%	(3	)	pts
New business	$	81			$	55			47		%

Commercial - Results of Operations



Three months ended March 31
(In millions)	2018				2017				Change
Gross written premiums	$	880			$	759			16		%
Net written premiums	832				724				15

Net earned premiums	743				661				12
Net investment income	149				183
Other revenues	8				9
Total operating revenues	900				853				6
Insurance claims and policyholders' benefits	473				426
Amortization of deferred acquisition costs	121				117
Other insurance related expenses	127				128
Other expenses	11				15
Total claims, benefits and expenses	732				686				(7	)
Core income (loss) before income tax	168				167
Income tax (expense) benefit on core income (loss)	(35		)		(56		)
Core income (loss)	$	133			$	111			20		%

Other Performance Metrics
Underwriting gain (loss)	$	22			$	(10	)		N/M		%

Loss & LAE ratio	63.0			%	63.9			%	0.9		pts
Acquisition expense ratio	18.0				19.1				1.1
Underwriting expense ratio	15.5				18.2				2.7
Expense ratio	33.5				37.3				3.8
Dividend ratio	0.6				0.5				(0.1	)
Combined ratio	97.1			%	101.7			%	4.6
Combined ratio excluding catastrophes and development	93.9			%	100.0			%	6.1		pts

Net accident year catastrophe losses incurred	$	29			$	27
Effect on loss & LAE ratio	3.9			%	3.9			%	—		pts

Net prior year development and other: (favorable) / unfavorable	$	(6	)		$	(1	)
Effect on loss & LAE ratio	(0.7		)	%	(2.2		)	%	(1.5	)	pts

Rate	1			%	—			%	1		pts
Renewal premium change	3			%	4			%	(1	)	pts
Retention	84			%	85			%	(1	)	pts
New business	$	181			$	140			29		%

International - Results of Operations



Three months ended March 31
(In millions)	2018				2017				Change
Gross written premiums	$	340			$	255			33		%
Net written premiums	295				238				24

Net earned premiums	236				197				20
Net investment income	14				12
Other revenues	—				—
Total operating revenues	250				209				20
Insurance claims and policyholders' benefits	142				115
Amortization of deferred acquisition costs	30				46
Other insurance related expenses	56				27
Other expenses	(4		)		(6		)
Total claims, benefits and expenses	224				182				(23	)
Core income (loss) before income tax	26				27
Income tax (expense) benefit on core income (loss)	(3		)		(7		)
Core income (loss)	$	23			$	20			15		%

Other Performance Metrics
Underwriting gain (loss)	$	8			$	9			(11	)	%

Loss & LAE ratio	60.4			%	58.3			%	(2.1	)	pts
Acquisition expense ratio	22.0				21.8				(0.2	)
Underwriting expense ratio	14.2				15.0				0.8
Expense ratio	36.2				36.8				0.6
Dividend ratio	—				—				—
Combined ratio	96.6			%	95.1			%	(1.5	)
Combined ratio excluding catastrophes and development	96.1			%	96.4			%	0.3		pts

Net accident year catastrophe losses incurred	$	2			$	3
Effect on loss & LAE ratio	0.7			%	1.7			%	1.0		pts

Net prior year development and other: (favorable) / unfavorable	$	—			$	(9	)
Effect on loss & LAE ratio	(0.2		)	%	(3.0		)	%	(2.8	)	pts

Rate	2			%	1			%	1		pts
Renewal premium change	8			%	1			%	7		pts
Retention	80			%	78			%	2		pts
New business	$	93			$	65			43		%

Life & Group - Results of Operations



Three months ended March 31
(In millions)	2018		2017			Change
Net earned premiums	$	134	$	133		1	%
Net investment income	200		197
Other revenues	1		1
Total operating revenues	335		331			1
Insurance claims and policyholders' benefits	303		330
Amortization of deferred acquisition costs	—		—
Other insurance related expenses	30		32
Other expenses	2		2
Total claims, benefits and expenses	335		364			8
Core income (loss) before income tax	—		(33		)
Income tax (expense) benefit on core income (loss)	14		37
Core income (loss)	$	14	$	4		250	%

Corporate & Other - Results of Operations



Three months ended March 31
(In millions)	2018			2017			Change
Net earned premiums	$	—		$	—
Net investment income	5			5
Other revenues	—			—
Total operating revenues	5			5			—		%
Insurance claims and policyholders' benefits	41			21
Amortization of deferred acquisition costs	—			—
Other insurance related expenses	—			—
Other expenses	41			44
Total claims, benefits and expenses	82			65			(26	)
Core income (loss) before income tax	(77		)	(60		)
Income tax (expense) benefit on core income (loss)	17			23
Core income (loss)	$	(60	)	$	(37	)	(62	)	%

Investment Summary - Consolidated



	March 31, 2018						December 31, 2017
(In millions)	Carrying Value			Net Unrealized Gains (Losses)			Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	18,605		$	1,062		$	18,810	$	1,597
States, municipalities and political subdivisions:
Tax-exempt	10,014			823			11,130		1,136
Taxable	2,863			370			2,897		413
Total states, municipalities and political subdivisions	12,877			1,193			14,027		1,549
Asset-backed:
RMBS	5,055			5			5,120		77
CMBS	1,955			7			1,872		32
Other ABS	1,188			3			1,094		11
Total asset-backed	8,198			15			8,086		120
U.S. Treasury and obligations of government-sponsored enterprises	119			(5		)	109		(2		)
Foreign government	450			2			444		7
Redeemable preferred stock	10			1			11		1
Total fixed maturity securities	40,259			2,268			41,487		3,272
Equities:
Common stock	87			—			27		6
Non-redeemable preferred stock	683			—			668		30
Total equities	770			—			695		36
Limited partnership investments	2,364			—			2,369		—
Other invested assets	48			—			44		—
Mortgage loans	864			—			839		—
Short term investments	1,230			(1		)	1,436		(1		)
Total investments	$	45,535		$	2,267		$	46,870	$	3,307

Net receivable/(payable) on investment activity	$	(103	)				$	23

Effective duration (in years)	6.0						5.9
Weighted average rating	A						A

RMBS - Residential mortgage-backed securities

CMBS - Commercial mortgage-backed securities

Other ABS - Other asset-backed securities

Investment Summary - Property & Casualty and Corporate & Other



	March 31, 2018						December 31, 2017
(In millions)	Carrying Value			Net Unrealized Gains (Losses)			Carrying Value			Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	12,785		$	137		$	12,938		$	447
States, municipalities and political subdivisions:
Tax-exempt	1,983			47			2,827			112
Taxable	1,205			82			1,247			102
Total states, municipalities and political subdivisions	3,188			129			4,074			214
Asset-backed:
RMBS	4,894			1			4,951			72
CMBS	1,851			7			1,761			30
Other ABS	1,081			2			981			7
Total asset-backed	7,826			10			7,693			109
U.S. Treasury and obligations of government-sponsored enterprises	94			(6		)	82			(4		)
Foreign government	450			2			444			7
Redeemable preferred stock	5			1			5			1
Total fixed maturity securities	24,348			273			25,236			774
Equities:
Common stock	87			—			27			6
Non-redeemable preferred stock	230			—			237			7
Total equities	317			—			264			13
Limited partnership investments	2,364			—			2,369			—
Other invested assets	48			—			44			—
Mortgage loans	664			—			639			—
Short term investments	1,208			(1		)	1,354			(1		)
Total investments	$	28,949		$	272		$	29,906		$	786

Net receivable/(payable) on investment activity	$	(130	)				$	(10	)

Effective duration (in years)	4.5						4.4
Weighted average rating	A						A

Investment Summary - Life & Group



	March 31, 2018				December 31, 2017
(In millions)	Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	5,820	$	925	$	5,872	$	1,150
States, municipalities and political subdivisions:
Tax-exempt	8,031		776		8,303		1,024
Taxable	1,658		288		1,650		311
Total states, municipalities and political subdivisions	9,689		1,064		9,953		1,335
Asset-backed:
RMBS	161		4		169		5
CMBS	104		—		111		2
Other ABS	107		1		113		4
Total asset-backed	372		5		393		11
U.S. Treasury and obligations of government-sponsored enterprises	25		1		27		2
Foreign government	—		—		—		—
Redeemable preferred stock	5		—		6		—
Total fixed maturity securities	15,911		1,995		16,251		2,498
Equities:
Common stock	—		—		—		—
Non-redeemable preferred stock	453		—		431		23
Total equities	453		—		431		23
Limited partnership investments	—		—		—		—
Other invested assets	—		—		—		—
Mortgage loans	200		—		200		—
Short term investments	22		—		82		—
Total investments	$	16,586	$	1,995	$	16,964	$	2,521

Net receivable/(payable) on investment activity	$	27			$	33

Effective duration (in years)	8.3				8.4
Weighted average rating	A				A

Investments - Fixed Maturity Securities by Credit Rating



March 31, 2018	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	$	—		$	—		$	65		$	—		$	479		$	22	$	4,175		$	342		$	11,932		$	669		$	1,954		$	29	$	18,605		$	1,062
States, municipalities and political subdivisions:
Tax-exempt	—			—			2,260			222			4,015			333		3,409			234			312			32			18			2		10,014			823
Taxable	—			—			388			33			1,810			213		658			124			7			—			—			—		2,863			370
Total states, municipalities and political subdivisions	—			—			2,648			255			5,825			546		4,067			358			319			32			18			2		12,877			1,193
Asset-backed:
RMBS	4,328			(47		)	59			—			19			—		69			(1		)	52			1			528			52		5,055			5
CMBS	44			—			330			7			382			6		296			—			577			(7		)	326			1		1,955			7
Other ABS	—			—			34			(3		)	137			1		514			2			503			3			—			—		1,188			3
Total asset-backed	4,372			(47		)	423			4			538			7		879			1			1,132			(3		)	854			53		8,198			15
U.S. Treasury and obligations of government-sponsored enterprises	119			(5		)	—			—			—			—		—			—			—			—			—			—		119			(5		)
Foreign government	—			—			129			—			254			1		47			1			20			—			—			—		450			2
Redeemable preferred stock	—			—			—			—			—			—		—			—			10			1			—			—		10			1
Total fixed maturity securities	$	4,491		$	(52	)	$	3,265		$	259		$	7,096		$	576	$	9,168		$	702		$	13,413		$	699		$	2,826		$	84	$	40,259		$	2,268

Percentage of total fixed maturity securities	11		%				8		%				18		%			23		%				33		%				7		%			100		%

Components of Net Investment Income



Three months ended March 31	Consolidated
(In millions)	2018			2017
Taxable fixed income securities	$	350		$	348
Tax-exempt fixed income securities	105			108
Total fixed income securities	455			456
Limited partnership and common stock investments	31			90
Other, net of investment expense	4			(1		)
Pretax net investment income	$	490		$	545
Fixed income securities, after tax	$	377		$	331
Net investment income, after tax	405			389

Effective income yield for fixed income securities, pretax	4.7		%	4.8			%
Effective income yield for fixed income securities, after tax	3.9			3.4



	Property & Casualty and Corporate & Other
Three months ended March 31	Property & Casualty and Corporate & Other
(In millions)	2018			2017
Taxable fixed income securities	$	233		$	233
Tax-exempt fixed income securities	20			23
Total fixed income securities	253			256
Limited partnership and common stock investments	31			90
Other, net of investment expense	6			2
Pretax net investment income	$	290		$	348
Fixed income securities, after tax	$	203		$	175
Net investment income, after tax	233			235

Effective income yield for fixed income securities, pretax	4.1		%	4.2		%
Effective income yield for fixed income securities, after tax	3.3			2.9



Three months ended March 31	Life & Group
(In millions)	2018				2017
Taxable fixed income securities	$	117			$	115
Tax-exempt fixed income securities	85				85
Total fixed income securities	202				200
Limited partnership and common stock investments	—				—
Other, net of investment expense	(2		)		(3		)
Pretax net investment income	$	200			$	197
Fixed income securities, after tax	$	174			$	156
Net investment income, after tax	172				154

Effective income yield for fixed income securities, pretax	5.7			%	5.8			%
Effective income yield for fixed income securities, after tax	4.9				4.5

Claim & Claim Adjustment Expense Reserve Rollforward



Three months ended March 31, 2018 (In millions)	Specialty			Commercial			International			P&C Operations			Life & Group			Corporate & Other			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	5,669		$	8,764		$	1,636		$	16,069		$	3,499		$	2,436		$	22,004
Ceded	662			628			204			1,494			209			2,231			3,934
Net	5,007			8,136			1,432			14,575			3,290			205			18,070

Net incurred claim & claim adjustment expenses	379			468			142			989			269			1			1,259
Net claim & claim adjustment expense payments	(416		)	(536		)	(114		)	(1,066		)	(240		)	(4		)	(1,310		)
Foreign currency translation adjustment and other	—			(2		)	18			16			(26		)	1			(9		)

Claim & claim adjustment expense reserves, end of period
Net	4,970			8,066			1,478			14,514			3,293			203			18,010
Ceded	726			652			240			1,618			208			2,231			4,057
Gross	$	5,696		$	8,718		$	1,718		$	16,132		$	3,501		$	2,434		$	22,067

Life & Group Policyholder Reserves



March 31, 2018
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,601	$	8,993	$	11,594
Structured settlement annuities	543		—		543
Other	16		—		16
Total	3,160		8,993		12,153
Shadow adjustments	133		1,561		1,694
Ceded reserves	208		229		437
Total gross reserves	$	3,501	$	10,783	$	14,284



December 31, 2017
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,568	$	8,959	$	11,527
Structured settlement annuities	547		—		547
Other	16		—		16
Total	3,131		8,959		12,090
Shadow adjustments	159		1,990		2,149
Ceded reserves	209		230		439
Total gross reserves	$	3,499	$	11,179	$	14,678

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 and asbestos and environmental pollution. 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, 2017 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. 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.

•

Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of i) net realized investment gains or losses, ii) income or loss from discontinued operations, iii) any cumulative effects of changes in accounting guidance and iv) deferred tax asset and liability remeasurement as a result of an enacted U.S. Federal tax rate change. The calculation of core income (loss) excludes net realized investment gains or losses because net realized investment gains or losses are generally driven by economic factors that are not necessarily consistent with key drivers of underwriting performance, and are therefore not considered an indication of trends in insurance 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.


•	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.

•

The majority of our limited partnership investments employ hedge fund strategies. While the Company generally does not invest in highly leveraged partnerships, there are risks inherent in limited partnership investments which may result in losses due to short-selling, derivatives or other speculative investment practices. The use of leverage increases volatility generated by the underlying investment strategies.


•	Certain immaterial differences are due to rounding.


•	N/M = Not Meaningful