8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 30, 2018

CNA FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-5823	36-6169860
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

151 N. Franklin, Chicago, Illinois	60606
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code (312) 822-5000

333 S. Wabash, Chicago, Illinois 60604

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 30, 2018, the registrant issued a press release and posted on its website (www.cna.com) a financial supplement providing information on its results of operations for the second quarter 2018. The press release is furnished as Exhibit 99.1 and the financial supplement is furnished as Exhibit 99.2 to this Form 8-K.

The information under Item 2.02 and in Exhibits 99.1 and 99.2 in this Current Report is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information under Item 2.02 and in Exhibits 99.1 and 99.2 in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits:

See Exhibit Index.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		CNA Financial Corporation
		(Registrant)
Date:  July 30, 2018	By	/s/ D. Craig Mense
		(Signature)
		D. Craig Mense Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	CNA Financial Corporation press release, issued July 30, 2018, providing information on the second quarter 2018 results of operations.
99.2	CNA Financial Corporation financial supplement, posted on its website July 30, 2018, providing supplemental financial information on the second quarter 2018.

EX-99.1

FOR IMMEDIATE RELEASE

CONTACT:

MEDIA:	ANALYSTS:
Brandon Davis, 312-822-5885	James Anderson, 312-822-7757

CNA FINANCIAL ANNOUNCES SECOND QUARTER 2018 RESULTS

• Q2 NET INCOME OF $270M; $0.99 PER SHARE; ROE 9.4%

• Q2 CORE INCOME OF $270M; $0.99 PER SHARE; ROE 9.1%

• Q2 P&C COMBINED RATIO OF 93.8% VS. 93.5%

• YTD P&C COMBINED RATIO OF 93.5% VS. 95.3%

• Q2 P&C UNDERLYING COMBINED RATIO OF 95.3% VS. 94.6%

• YTD P&C UNDERLYING COMBINED RATIO OF 94.3% VS. 95.9%

• QUARTERLY DIVIDEND INCREASED 17% TO $0.35 PER SHARE

CHICAGO, July 30, 2018 --- CNA Financial Corporation (NYSE: CNA) today announced second quarter2018 net income and core income of $270 million, or $0.99 per share. Property & Casualty Operations combined ratio for the second quarter was 93.8% compared with 93.5% in the second quarter of 2017. Property & Casualty Operations net written premiums grew 4% compared to the prior year quarter. Net investment income, after tax, was $416 million for the second quarter of 2018.

Net income for the six months ended June 30, 2018 was $561 million, or $2.06 per share, and core income was $551 million, or $2.02 per share, both improved from the prior year period. Property & Casualty Operations combined ratio for the six months ended June 30, 2018 was 93.5% compared with 95.3% in the prior year period. Property & Casualty Operations underlying combined ratio for the six months ended June 30, 2018 was 94.3% compared with 95.9% in the prior year period. Property & Casualty Operations net written premiums grew 7% for the six months ended June 30, 2018 compared to the prior year period. Net investment income, after tax, was $821 million for the six months ended June 30, 2018.

CNA Financial declared a quarterly dividend of $0.35 per share, payable August 29, 2018 to stockholders of record on August 13, 2018.

	Results for the Three Months Ended June 30				Results for the Six Months Ended June 30
($ millions, except per share data)	2018		2017		2018		2017
Net income(a)	$	270	$	272	$	561	$	532
Core income (a)(b)	270		239		551		474
Net income per diluted share	$	0.99	$	1.00	$	2.06	$	1.96
Core income per diluted share	0.99		0.88		2.02		1.74

	June 30, 2018		December 31, 2017
Book value per share	$	42.06	$	45.15
Book value per share excluding AOCI	44.29		45.02

(a) Results in 2018 benefited from the reduction of the U.S. Federal tax rate from 35% to 21%.

(b) Management utilizes the core income (loss) financial measure to monitor the Company's operations. Please refer herein to the Reconciliation of GAAP Measures to Non-GAAP Measures section of this press release for further discussion of this non-GAAP measure.

1

"I am pleased with the second quarter’s strong core income of $0.99 per share, and combined with our first quarter performance generated a first half core income of $2.02 per share, which is the highest first-half result for CNA in over 10 years. Our first half underlying combined ratio of 94.3% improved 1.6 points compared with the first half of 2017. These results give me confidence in the ongoing progress CNA is making in our journey of generating sustained top quartile underwriting performance," said Dino E. Robusto, Chairman and Chief Executive Officer of CNA Financial Corporation.

Property & Casualty Operations

	Results for the Three Months Ended June 30								Results for the Six Months Ended June 30
($ millions)	2018				2017				2018				2017
Net written premiums	$	1,769			$	1,702			$	3,582			$	3,334
NWP change (% year over year)	4			%	5			%	7			%	1			%
Net investment income	$	302			$	276			$	587			$	619
Core income	319				261				646				529
Loss ratio excluding catastrophes and development	61.4			%	60.5			%	60.7			%	61.3			%
Effect of catastrophe impacts	1.6				2.4				1.8				2.3
Effect of development-related items	(3.1		)		(3.5		)		(2.6		)		(2.9		)
Loss ratio	59.9			%	59.4			%	59.9			%	60.7			%
Expense ratio	33.5			%	33.8			%	33.2			%	34.3			%
Combined ratio	93.8			%	93.5			%	93.5			%	95.3			%
Combined ratio excluding catastrophes and development	95.3			%	94.6			%	94.3			%	95.9			%

• The combined ratio excluding catastrophes and development increased 0.7 points for the second quarter of 2018 as compared with the prior year quarter driven by a 0.9 point increase in the underlying loss ratio primarily due to a higher number of large property losses. This was partially offset by a 0.3 point improvement in the expense ratio driven by higher net earned premiums.

For the year-to-date period, the combined ratio excluding catastrophes and development improved 1.6 points as compared with the prior year period driven by 0.6 points of improvement in the underlying loss ratio, as property losses were within expectations, and a 1.1 point improvement in the expense ratio primarily due to higher net earned premiums.

• The combined ratio increased 0.3 points for the second quarter of 2018 as compared with the prior year quarter. Net catastrophe losses were $26 million, or 1.6 points of the loss ratio in the quarter as compared with $39 million, or 2.4 points of the loss ratio, for the prior year quarter. Favorable net prior year development improved the loss ratio by 3.1 points in the quarter as compared with a 3.5 point improvement in the prior year quarter.

For the year-to-date period, the combined ratio improved 1.8 points as compared with the prior year period. Net catastrophe losses were $60 million, or 1.8 points of the loss ratio in the current year-to-date period as compared with $73 million, or 2.3 points of the loss ratio, for the prior year period. Favorable net prior year development improved the loss ratio by 2.6 points in the current year-to-date period as compared with a 2.9 point improvement in the prior year period.

• Net written premiums grew 4% as compared with the prior year quarter. For the year-to-date period, net written premiums grew 7%.

2

Business Operating Highlights

Specialty

	Results for the Three Months Ended June 30								Results for the Six Months Ended June 30
($ millions)	2018				2017				2018				2017
Net written premiums	$	688			$	701			$	1,374			$	1,371
NWP change (% year over year)	(2		)	%	3			%	—			%	1			%
Core income	$	183			$	131			$	354			$	268
Loss ratio excluding catastrophes and development	60.5			%	61.0			%	60.4			%	61.9			%
Effect of catastrophe impacts	0.5				0.9				0.5				0.7
Effect of development-related items	(6.4		)		(3.8		)		(5.5		)		(3.0		)
Loss ratio	54.6			%	58.1			%	55.4			%	59.6			%
Expense ratio	32.0			%	32.0			%	31.6			%	32.0			%
Combined ratio	86.8			%	90.3			%	87.2			%	91.7			%
Combined ratio excluding catastrophes and development	92.7			%	93.2			%	92.2			%	94.0			%

• The combined ratio excluding catastrophes and development improved 0.5 points for the second quarter of 2018 as compared with the prior year quarter driven by a 0.5 point improvement in the underlying loss ratio. For the year-to-date period, the combined ratio excluding catastrophes and development improved 1.8 points.

• The combined ratio improved 3.5 points for the second quarter of 2018 as compared with the prior year quarter. Favorable net prior year development improved the loss ratio by 6.4 points in the quarter as compared with a 3.8 point improvement in the prior year quarter. For the year-to-date period, the combined ratio improved 4.5 points.

• Net written premiums for Specialty decreased 2% for the second quarter of 2018 as compared with the prior year quarter driven by a higher level of ceded reinsurance to support growth in management liability and lower retention partially offset by higher new business and positive renewal premium change. For the year-to-date period, net written premiums were consistent.

3

Commercial

	Results for the Three Months Ended June 30								Results for the Six Months Ended June 30
($ millions)	2018				2017				2018				2017
Net written premiums	$	810			$	782			$	1,642			$	1,506
NWP change (% year over year)	4			%	4			%	9			%	—			%
Core income	$	143			$	120			$	276			$	231
Loss ratio excluding catastrophes and development	60.8			%	59.0			%	60.3			%	60.6			%
Effect of catastrophe impacts	2.5				4.7				3.2				4.3
Effect of development-related items	(0.9		)		(4.1		)		(0.8		)		(3.2		)
Loss ratio	62.4			%	59.6			%	62.7			%	61.7			%
Expense ratio	33.5			%	34.4			%	33.4			%	35.8			%
Combined ratio	96.6			%	94.6			%	96.8			%	98.0			%
Combined ratio excluding catastrophes and development	95.0			%	94.0			%	94.4			%	96.9			%

• The combined ratio excluding catastrophes and development increased 1.0 point for the second quarter of 2018 as compared with the prior year quarter driven by a 1.8 point increase in the underlying loss ratio, primarily due to a higher number of large property losses. This was partially offset by 0.9 points of improvement in the expense ratio driven by lower IT spend, lower employee costs and higher net earned premiums. For the year-to-date period, the combined ratio excluding catastrophes and development improved 1.7 points after adjusting for the Small Business premium rate adjustment in the prior period.

• The combined ratio increased 2.0 points for the second quarter of 2018 as compared with the prior year quarter. Net catastrophe losses were $19 million, or 2.5 points of the loss ratio, for the second quarter of 2018, as compared to $35 million, or 4.7 points of the loss ratio, for the prior year quarter. Favorable net prior year development improved the loss ratio by 0.9 points in the quarter as compared with a 4.1 point improvement in the prior year quarter. For the year-to-date period, the combined ratio increased 1.3 points after adjusting for the Small Business premium rate adjustment in the prior period.

• Net written premiums for Commercial were 4% higher for the second quarter of 2018 as compared with the prior year quarter driven by positive renewal premium change and higher new business. For the year-to-date period, net written premiums grew 6% after adjusting for the Small Business premium rate adjustment in the prior period.

4

International

	Results for the Three Months Ended June 30								Results for the Six Months Ended June 30
($ millions)	2018				2017				2018				2017
Net written premiums	$	271			$	219			$	566			$	457
NWP change (% year over year)	24			%	13			%	24			%	6			%
Core (loss) income	$	(7	)		$	10			$	16			$	30
Loss ratio excluding catastrophes and development	65.9			%	63.8			%	62.9			%	61.7			%
Effect of catastrophe impacts	1.6				(0.5		)		1.3				0.6
Effect of development-related items	(0.7		)		(0.5		)		(0.5		)		(1.7		)
Loss ratio	66.8			%	62.8			%	63.7			%	60.6			%
Expense ratio	37.9			%	37.3			%	37.1			%	37.1			%
Combined ratio	104.7			%	100.1			%	100.8			%	97.7			%
Combined ratio excluding catastrophes and development	103.8			%	101.1			%	100.0			%	98.8			%

• The combined ratio excluding catastrophes and development increased 2.7 points for the second quarter of 2018 as compared with the prior year quarter primarily due to a 2.1 point increase in the underlying loss ratio driven by a higher number of large property losses mainly in Canada. For the year-to-date period, the combined ratio excluding catastrophes and development increased 1.2 points.

• The combined ratio increased 4.6 points for the second quarter of 2018 as compared with the prior year quarter. Net catastrophe losses were $4 million, or 1.6 points of the loss ratio, for the second quarter of 2018. There were no net catastrophe losses for the three months ended June 30, 2017. Favorable net prior year development improved the loss ratio by 0.7 points in the quarter as compared with a 0.5 point improvement in the prior year quarter. For the year-to-date period, the combined ratio increased 3.1 points.

• Net written premiums for International increased 19% excluding currency fluctuations, for the second quarter of 2018 as compared with the prior year quarter driven by positive renewal premium change and higher new business. For the year-to-date period, net written premiums grew 16% excluding currency fluctuations.

5

Life & Group

	Results for the Three Months Ended June 30					Results for the Six Months Ended June 30
($ millions)	2018			2017		2018		2017
Net investment income	$	198		$	195	$	398	$	392
Total operating revenues	329			330		664		661
Core (loss) income	(10		)	5		4		9

Core results decreased $15 million for the second quarter of 2018 as compared with the prior year quarter. Excluding the unfavorable effect of the Federal corporate income tax rate change which reduced the income tax benefit, core income was consistent with the prior year period. Morbidity continues to trend in line with expectations. Persistency was slightly unfavorable in the quarter. Excluding the unfavorable effect of the Federal corporate income tax rate change, core income for the year-to-date period increased approximately $23 million.

Corporate & Other

	Results for the Three Months Ended June 30						Results for the Six Months Ended June 30
($ millions)	2018			2017			2018			2017
Net investment income	$	6		$	4		$	11		$	9
Interest expense	34			39			68			77
Core loss	(39		)	(27		)	(99		)	(64		)

Core loss increased $12 million for the second quarter of 2018 as compared with the prior year quarter. Excluding the unfavorable effect of the Federal corporate income tax rate change, core loss increased approximately $5 million driven by non-recurring costs of $23 million associated with the transition to a new IT infrastructure service provider. This was partially offset by a higher recognition of retroactive reinsurance deferred gain on the LPT due to higher net A&EP claim payments, as compared to the prior year period. Excluding the unfavorable effect of the Federal corporate income tax rate change, core loss for the year-to-date period increased approximately $17 million.

Net Investment Income

Pretax net investment income increased $31 million for the second quarter of 2018 as compared with the prior year quarter. The increase was driven by limited partnership and common stock investments, which returned 1.8% in 2018 as compared with 0.7% in the prior year quarter. Net investment income, after tax, increased $72 million for the three months ended June 30, 2018 as compared with the same period in 2017 driven by the lower tax rate and higher limited partnership returns. For the year-to-date period, pretax net investment income decreased $24 million and net investment income, after tax, increased $88 million.

6

About the Company

CNA is the eighth largest commercial insurer in the United States. CNA provides a broad range of standard and specialized property and casualty insurance products and services for businesses and professionals in the U.S., Canada, Europe and Asia, backed by 120 years of experience and more than $45 billion of assets.For more information about CNA, visit our website at www.cna.com.“CNA” is a service mark registered by CNA Financial Corporation with the United States Patent and Trademark Office. Certain CNA Financial Corporation subsidiaries use the “CNA” service mark in connection with insurance underwriting and claims activities.

Conference Call and Webcast/Presentation Information

A conference call for investors and the professional investment community will be held at 10:00 a.m. (ET) today. On the conference call will be Dino E. Robusto, Chairman and Chief Executive Officer of CNA Financial Corporation, and other members of senior management. Participants can access the call by dialing (888) 572-7025, or for international callers, (719) 325-2420. The call will also be broadcast live on the internet at http://investor.cna.com or you may go to the investor relations pages of the CNA website (www.cna.com) for further details. A presentation will be posted and available on the CNA website and will provide additional insight into the results.

The call is available to the media, but questions will be restricted to investors and the professional investment community. An online replay will be available on CNA's website following the call. Financial supplement information related to the results is available on the investor relations pages of the CNA website or by contacting investor.relations@cna.com.

Definition of Reported Segments

• Specialty provides management and professional liability and other coverages through property and casualty products and services using a network of brokers, independent agencies and managing general underwriters.

• Commercial works with an independent agency distribution system and a network of brokers to market a broad range of property and casualty insurance products and services to small, middle-market and large businesses and organizations.

• International provides property and casualty insurance and specialty coverages on a global basis through its operations in Canada, the United Kingdom, Continental Europe and Singapore as well as through its presence at Lloyd’s of London.

• Life & Group primarily includes the results of the individual and group long term care businesses that are in run off.

• Corporate & Other 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.

Financial Measures

Management utilizes the following metrics in their evaluation of the Property & Casualty Operations. These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).

• Loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums.

• Underlying loss ratio represents the loss ratio excluding catastrophes and development.

• Expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums.

• Dividend ratio is the ratio of policyholders' dividends incurred to net earned premiums.

• Combined ratio is the sum of the loss, expense and dividend ratios.

• Underlying combined ratio is the sum of the underlying loss, expense and dividend ratios.

• 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.

• Retention represents the percentage of premium dollars renewed in comparison to the expiring premium dollars from policies available to renew.

• New business represents premiums from policies written with new customers and additional policies written with existing customers.

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.

7

Reconciliation of GAAP Measures to Non-GAAP Measures

This press release also contains financial measures that are not in accordance with GAAP.  Management utilizes these financial measures to monitor the Company's insurance operations and investment portfolio. The Company believes the presentation of these measures provides investors with a better understanding of the significant factors that comprise the Company's operating performance. Reconciliations of these measures to the most comparable GAAP measures follow below.

Reconciliation of Net Income to Core Income

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.

	Results for the Three Months Ended June 30				Results for the Six Months Ended June 30
($ millions)	2018		2017		2018		2017
Net income	$	270	$	272	$	561	$	532
Less: Net realized investment gains	—		33		10		58
Core income	$	270	$	239	$	551	$	474

Reconciliation of Net Income per Diluted Share to Core Income per Diluted Share

Core income (loss) per diluted share provides management and investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core income (loss). Core income per diluted share is core income on a per diluted share basis.

	Results for the Three Months Ended June 30				Results for the Six Months Ended June 30
	2018		2017		2018		2017
Net income per diluted share	$	0.99	$	1.00	$	2.06	$	1.96
Less: Net realized investment gains	—		0.12		0.04		0.22
Core income per diluted share	$	0.99	$	0.88	$	2.02	$	1.74

Reconciliation of Book Value per Share to Book Value per Share Excluding AOCI

Book value per share excluding AOCI allows management and investors to analyze the amount of the Company's net worth primarily attributable to the Company's business operations. The Company believes this measurement is useful as it reduces the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.

	June 30, 2018			December 31, 2017
Book value per share	$	42.06		$	45.15
Less: Per share impact of AOCI	(2.23		)	0.13
Book value per share excluding AOCI	$	44.29		$	45.02

8

Calculation of Return on Equity and Core Return on Equity

Core return on equity provides management and investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to its business operations.

	Results for the Three Months Ended June 30						Results for the Six Months Ended June 30
($ millions)	2018			2017			2018			2017
Annualized net income	$	1,078		$	1,090		$	1,122		$	1,064
Average stockholders' equity including AOCI (a)	11,420			11,861			11,830			11,999
Return on equity	9.4		%	9.2		%	9.5		%	8.9		%
Annualized core income	$	1,080		$	956		$	1,101		$	948
Average stockholders' equity excluding AOCI (a)	11,922			11,890			12,115			12,068
Core return on equity	9.1		%	8.0		%	9.1		%	7.9		%

(a) Average stockholders' equity is calculated using a simple average of the beginning and ending balances for the period.

For additional 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 financial supplement, available at www.cna.com.

Forward-Looking Statement

This press release may include statements which relate to anticipated future events (forward-looking statements) rather than actual present conditions or historical events.  These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions.  Forward-looking statements, by their nature, are subject to a variety of inherent risks and uncertainties that could cause actual results to differ materially from the results projected.  Many of these risks and uncertainties cannot be controlled by CNA. For a detailed description of these risks and uncertainties affecting CNA, please refer to CNA's most recent 10-K on file with the Securities and Exchange Commission available at www.cna.com.

Any forward-looking statements made in this press release are made by CNA as of the date of this press release.  Further, CNA does not have any obligation to update or revise any forward-looking statement contained in this press release, even if CNA's expectations or any related events, conditions or circumstances change.

# # #

9

EX-99.2

CNA Financial Corporation

Supplemental Financial Information

June 30, 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

Periods ended June 30	Three Months									Six Months
(In millions)	2018			2017			Change			2018			2017			Change
Revenues:
Net earned premiums	$	1,815		$	1,734		5		%	$	3,600		$	3,379		7		%
Net investment income	506			475			7			996			1,020			(2	)
Net realized investment gains (losses):
Other-than-temporary impairment (OTTI) losses	—			(2		)				(6		)	(4		)
Other net realized investment gains (losses)	(1		)	52						17			90
Net realized investment gains (losses)	(1		)	50						11			86
Non-insurance warranty revenue	248			98						486			191
Other revenues	6			9						16			20
Total revenues	2,574			2,366			9			5,109			4,696			9
Claims, Benefits and Expenses:
Insurance claims and policyholders' benefits	1,327			1,280						2,666			2,573
Amortization of deferred acquisition costs	359			312						655			617
Non-insurance warranty expense	225			72						441			142
Other operating expenses	298			292						601			568
Interest	35			40						70			83
Total claims, benefits and expenses	2,244			1,996			(12	)		4,433			3,983			(11	)
Income (loss) before income tax	330			370						676			713
Income tax (expense) benefit	(60		)	(98		)				(115		)	(181		)
Net income (loss)	$	270		$	272		(1	)	%	$	561		$	532		5		%

1

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

Periods ended June 30	Three Months						Six Months
(In millions, except per share data)	2018			2017			2018			2017
Components of Income (Loss)
Core income (loss)	$	270		$	239		$	551		$	474
Net realized investment gains (losses)	—			33			10			58
Net income (loss)	$	270		$	272		$	561		$	532
Diluted Earnings (Loss) Per Common Share
Core income (loss)	$	0.99		$	0.88		$	2.02		$	1.74
Net realized investment gains (losses)	—			0.12			0.04			0.22
Diluted earnings (loss) per share	$	0.99		$	1.00		$	2.06		$	1.96
Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic	271.5			271.1			271.5			271.0
Diluted	272.4			271.9			272.4			271.9
Return on Equity
Net income (loss) (1)	9.4		%	9.2		%	9.5		%	8.9		%
Core income (loss) (2)	9.1			8.0			9.1			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.

2

Selected Balance Sheet Data and Statement of Cash Flows Data

(In millions, except per share data)	June 30, 2018			December 31, 2017
Total investments	$	45,152		$	46,870
Reinsurance receivables, net of allowance for uncollectible receivables	4,535			4,261
Total assets	57,858			56,567
Insurance reserves	37,067			37,212
Debt	2,709			2,858
Total liabilities	46,443			44,323
Accumulated other comprehensive income (loss) (1)	(605		)	32
Total stockholders' equity	11,415			12,244
Book value per common share	$	42.06		$	45.15
Book value per common share excluding AOCI	$	44.29		$	45.02
Outstanding shares of common stock (in millions of shares)	271.4			271.2
Statutory capital and surplus - Combined Continental Casualty Companies (2)	$	10,514		$	10,726

Three months ended June 30	2018			2017
Net cash flows provided (used) by operating activities	$	136		$	233
Net cash flows provided (used) by investing activities	(50		)	(243		)
Net cash flows provided (used) by financing activities	(74		)	(68		)
Net cash flows provided (used) by operating, investing and financing activities	$	12		$	(78	)

Six months ended June 30	2018			2017
Net cash flows provided (used) by operating activities	$	354		$	515
Net cash flows provided (used) by investing activities	439			111
Net cash flows provided (used) by financing activities	(855		)	(677		)
Net cash flows provided (used) by operating, investing and financing activities	$	(62	)	$	(51	)

(1) As of June 30, 2018 and December 31, 2017, the net unrealized gains on investments included in AOCI were net of after-tax Shadow Adjustments of $1,186 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 June 30, 2018 is preliminary.

3

Property & Casualty - Results of Operations

Periods ended June 30	Three Months											Six Months
(In millions)	2018				2017				Change			2018				2017				Change
Gross written premiums	$	2,975			$	2,778			7		%	$	5,966			$	5,530			8		%
Net written premiums	1,769				1,702				4			3,582				3,334				7
Net earned premiums	1,684				1,600				5			3,335				3,112				7
Net investment income	302				276							587				619
Non-insurance warranty revenue	248				98							486				191
Other revenues	7				8							16				18
Total operating revenues	2,241				1,982				13			4,424				3,940				12
Insurance claims and policyholders' benefits	1,014				954							2,009				1,896
Amortization of deferred acquisition costs	359				312							655				617
Other insurance related expenses	206				231							453				453
Non-insurance warranty expense	225				72							441				142
Other expenses	29				20							47				39
Total claims, benefits and expenses	1,833				1,589				(15	)		3,605				3,147				(15	)
Core income (loss) before income tax	408				393							819				793
Income tax (expense) benefit on core income (loss)	(89		)		(132		)					(173		)		(264		)
Core income (loss)	$	319			$	261			22		%	$	646			$	529			22		%
Other Performance Metrics
Underwriting gain (loss)	$	105			$	103			2		%	$	218			$	146			49		%
Loss & LAE ratio	59.9			%	59.4			%	(0.5	)	pts	59.9			%	60.7			%	0.8		pts
Acquisition expense ratio	20.0				19.1				(0.9	)		19.7				19.4				(0.3	)
Underwriting expense ratio	13.5				14.7				1.2			13.5				14.9				1.4
Expense ratio	33.5				33.8				0.3			33.2				34.3				1.1
Dividend ratio	0.4				0.3				(0.1	)		0.4				0.3				(0.1	)
Combined ratio	93.8			%	93.5			%	(0.3	)	pts	93.5			%	95.3			%	1.8		pts
Combined ratio excluding catastrophes and development	95.3			%	94.6			%	(0.7	)	pts	94.3			%	95.9			%	1.6		pts
Net accident year catastrophe losses incurred	$	26			$	39						$	60			$	73
Effect on loss & LAE ratio	1.6			%	2.4			%	0.8		pts	1.8			%	2.3			%	0.5		pts
Net prior year development and other: (favorable) / unfavorable	$	(52	)		$	(59	)					$	(88	)		$	(86	)
Effect on loss & LAE ratio	(3.1		)	%	(3.5		)	%	(0.4	)	pts	(2.6		)	%	(2.9		)	%	(0.3	)	pts
Rate	1			%	—			%	1		pts	1			%	1			%	—		pts
Renewal premium change	4			%	3			%	1		pts	4			%	3			%	1		pts
Retention	82			%	86			%	(4	)	pts	83			%	86			%	(3	)	pts
New business	$	332			$	289			15		%	$	687			$	549			25		%

4

Specialty - Results of Operations

Periods ended June 30	Three Months											Six Months
(In millions)	2018				2017				Change			2018				2017				Change
Gross written premiums	$	1,736			$	1,665			4		%	$	3,507			$	3,403			3		%
Net written premiums	688				701				(2	)		1,374				1,371				—
Net earned premiums	683				678				1			1,355				1,332				2
Net investment income	130				117							252				265
Non-insurance warranty revenue	248				98							486				191
Other revenues	—				—							1				1
Total operating revenues	1,061				893				19			2,094				1,789				17
Insurance claims and policyholders' benefits	373				395							753				796
Amortization of deferred acquisition costs	149				147							294				289
Other insurance related expenses	70				71							134				138
Non-insurance warranty expense	225				72							441				142
Other expenses	12				11							23				21
Total claims, benefits and expenses	829				696				(19	)		1,645				1,386				(19	)
Core income (loss) before income tax	232				197							449				403
Income tax (expense) benefit on core income (loss)	(49		)		(66		)					(95		)		(135		)
Core income (loss)	$	183			$	131			40		%	$	354			$	268			32		%
Other Performance Metrics
Underwriting gain (loss)	$	91			$	65			40		%	$	174			$	109			60		%
Loss & LAE ratio	54.6			%	58.1			%	3.5		pts	55.4			%	59.6			%	4.2		pts
Acquisition expense ratio	20.8				20.1				(0.7	)		20.5				20.0				(0.5	)
Underwriting expense ratio	11.2				11.9				0.7			11.1				12.0				0.9
Expense ratio	32.0				32.0				—			31.6				32.0				0.4
Dividend ratio	0.2				0.2				—			0.2				0.1				(0.1	)
Combined ratio	86.8			%	90.3			%	3.5		pts	87.2			%	91.7			%	4.5		pts
Combined ratio excluding catastrophes and development	92.7			%	93.2			%	0.5		pts	92.2			%	94.0			%	1.8		pts
Net accident year catastrophe losses incurred	$	3			$	5						$	6			$	9
Effect on loss & LAE ratio	0.5			%	0.9			%	0.4		pts	0.5			%	0.7			%	0.2		pts
Net prior year development and other: (favorable) / unfavorable	$	(44	)		$	(27	)					$	(74	)		$	(44	)
Effect on loss & LAE ratio	(6.4		)	%	(3.8		)	%	2.6		pts	(5.5		)	%	(3.0		)	%	2.5		pts
Rate	2			%	1			%	1		pts	2			%	1			%	1		pts
Renewal premium change	4			%	3			%	1		pts	3			%	4			%	(1	)	pts
Retention	82			%	89			%	(7	)	pts	84			%	88			%	(4	)	pts
New business	$	92			$	62			48		%	$	173			$	117			48		%

5

Commercial - Results of Operations

Periods ended June 30	Three Months											Six Months
(In millions)	2018				2017				Change			2018				2017				Change
Gross written premiums	$	925			$	861			7		%	$	1,805			$	1,620			11		%
Net written premiums	810				782				4			1,642				1,506				9
Net earned premiums	753				716				5			1,496				1,377				9
Net investment income	157				146							306				329
Other revenues	8				9							16				18
Total operating revenues	918				871				5			1,818				1,724				5
Insurance claims and policyholders' benefits	475				430							948				856
Amortization of deferred acquisition costs	127				120							248				237
Other insurance related expenses	126				129							253				257
Other expenses	10				10							21				25
Total claims, benefits and expenses	738				689				(7	)		1,470				1,375				(7	)
Core income (loss) before income tax	180				182							348				349
Income tax (expense) benefit on core income (loss)	(37		)		(62		)					(72		)		(118		)
Core income (loss)	$	143			$	120			19		%	$	276			$	231			19		%
Other Performance Metrics
Underwriting gain (loss)	$	25			$	37			(32	)	%	$	47			$	27			74		%
Loss & LAE ratio	62.4			%	59.6			%	(2.8	)	pts	62.7			%	61.7			%	(1.0	)	pts
Acquisition expense ratio	17.9				17.2				(0.7	)		17.9				18.1				0.2
Underwriting expense ratio	15.6				17.2				1.6			15.5				17.7				2.2
Expense ratio	33.5				34.4				0.9			33.4				35.8				2.4
Dividend ratio	0.7				0.6				(0.1	)		0.7				0.5				(0.2	)
Combined ratio	96.6			%	94.6			%	(2.0	)	pts	96.8			%	98.0			%	1.2		pts
Combined ratio excluding catastrophes and development	95.0			%	94.0			%	(1.0	)	pts	94.4			%	96.9			%	2.5		pts
Net accident year catastrophe losses incurred	$	19			$	35						$	48			$	62
Effect on loss & LAE ratio	2.5			%	4.7			%	2.2		pts	3.2			%	4.3			%	1.1		pts
Net prior year development and other: (favorable) / unfavorable	$	(6	)		$	(30	)					$	(12	)		$	(31	)
Effect on loss & LAE ratio	(0.9		)	%	(4.1		)	%	(3.2	)	pts	(0.8		)	%	(3.2		)	%	(2.4	)	pts
Rate	1			%	—			%	1		pts	1			%	—			%	1		pts
Renewal premium change	4			%	3			%	1		pts	3			%	3			%	—		pts
Retention	85			%	86			%	(1	)	pts	85			%	86			%	(1	)	pts
New business	$	157			$	154			2		%	$	338			$	294			15		%

6

International - Results of Operations

Periods ended June 30	Three Months											Six Months
(In millions)	2018				2017				Change			2018				2017				Change
Gross written premiums	$	314			$	252			25		%	$	654			$	507			29		%
Net written premiums	271				219				24			566				457				24
Net earned premiums	248				206				20			484				403				20
Net investment income	15				13							29				25
Other revenues	(1		)		(1		)					(1		)		(1		)
Total operating revenues	262				218				20			512				427				20
Insurance claims and policyholders' benefits	166				129							308				244
Amortization of deferred acquisition costs	83				45							113				91
Other insurance related expenses	10				31							66				58
Other expenses	7				(1		)					3				(7		)
Total claims, benefits and expenses	266				204				(30	)		490				386				(27	)
Core income (loss) before income tax	(4		)		14							22				41
Income tax (expense) benefit on core income (loss)	(3		)		(4		)					(6		)		(11		)
Core income (loss)	$	(7	)		$	10			(170	)	%	$	16			$	30			(47	)	%
Other Performance Metrics
Underwriting gain (loss)	$	(11	)		$	1			N/M		%	$	(3	)		$	10			(130	)	%
Loss & LAE ratio	66.8			%	62.8			%	(4.0	)	pts	63.7			%	60.6			%	(3.1	)	pts
Acquisition expense ratio	23.7				22.3				(1.4	)		22.9				22.0				(0.9	)
Underwriting expense ratio	14.2				15.0				0.8			14.2				15.1				0.9
Expense ratio	37.9				37.3				(0.6	)		37.1				37.1				—
Dividend ratio	—				—				—			—				—				—
Combined ratio	104.7			%	100.1			%	(4.6	)	pts	100.8			%	97.7			%	(3.1	)	pts
Combined ratio excluding catastrophes and development	103.8			%	101.1			%	(2.7	)	pts	100.0			%	98.8			%	(1.2	)	pts
Net accident year catastrophe losses incurred	$	4			$	(1	)					$	6			$	2
Effect on loss & LAE ratio	1.6			%	(0.5		)	%	(2.1	)	pts	1.3			%	0.6			%	(0.7	)	pts
Net prior year development and other: (favorable) / unfavorable	$	(2	)		$	(2	)					$	(2	)		$	(11	)
Effect on loss & LAE ratio	(0.7		)	%	(0.5		)	%	0.2		pts	(0.5		)	%	(1.7		)	%	(1.2	)	pts
Rate	3			%	—			%	3		pts	3			%	—			%	3		pts
Renewal premium change	8			%	3			%	5		pts	6			%	2			%	4		pts
Retention	73			%	82			%	(9	)	pts	78			%	80			%	(2	)	pts
New business	$	83			$	73			14		%	$	176			$	138			28		%

7

Life & Group - Results of Operations

Periods ended June 30	Three Months									Six Months
(In millions)	2018			2017			Change			2018			2017			Change
Net earned premiums	$	131		$	135		(3	)	%	$	265		$	268		(1	)	%
Net investment income	198			195						398			392
Other revenues	—			—						1			1
Total operating revenues	329			330			—			664			661			—
Insurance claims and policyholders' benefits	327			328						630			658
Amortization of deferred acquisition costs	—			—						—			—
Other insurance related expenses	30			32						60			64
Other expenses	1			1						3			3
Total claims, benefits and expenses	358			361			1			693			725			4
Core income (loss) before income tax	(29		)	(31		)				(29		)	(64		)
Income tax (expense) benefit on core income (loss)	19			36						33			73
Core income (loss)	$	(10	)	$	5		(300	)	%	$	4		$	9		(56	)	%

8

Corporate & Other - Results of Operations

Periods ended June 30	Three Months									Six Months
(In millions)	2018			2017			Change			2018			2017			Change
Net earned premiums	$	—		$	(1	)				$	—		$	(1	)
Net investment income	6			4						11			9
Other revenues	(1		)	1						(1		)	1
Total operating revenues	5			4			25		%	10			9			11		%
Insurance claims and policyholders' benefits	(14		)	(2		)				27			19
Amortization of deferred acquisition costs	—			—						—			—
Other insurance related expenses	—			(2		)				—			(2		)
Other expenses	67			50						108			94
Total claims, benefits and expenses	53			46			(15	)		135			111			(22	)
Core income (loss) before income tax	(48		)	(42		)				(125		)	(102		)
Income tax (expense) benefit on core income (loss)	9			15						26			38
Core income (loss)	$	(39	)	$	(27	)	(44	)	%	$	(99	)	$	(64	)	(55	)	%

9

Investment Summary - Consolidated

	June 30, 2018						March 31, 2018						December 31, 2017
(In millions)	Carrying Value			Net Unrealized Gains (Losses)			Carrying Value			Net Unrealized Gains (Losses)			Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	18,635		$	735		$	18,605		$	1,062		$	18,810	$	1,597
States, municipalities and political subdivisions:
Tax-exempt	9,168			810			10,014			823			11,130		1,136
Taxable	2,841			343			2,863			370			2,897		413
Total states, municipalities and political subdivisions	12,009			1,153			12,877			1,193			14,027		1,549
Asset-backed:
RMBS	4,948			(13		)	5,055			5			5,120		77
CMBS	2,072			(10		)	1,955			7			1,872		32
Other ABS	1,557			—			1,188			3			1,094		11
Total asset-backed	8,577			(23		)	8,198			15			8,086		120
U.S. Treasury and obligations of government-sponsored enterprises	127			—			119			(5		)	109		(2		)
Foreign government	437			1			450			2			444		7
Redeemable preferred stock	10			1			10			1			11		1
Total fixed maturity securities	39,795			1,867			40,259			2,268			41,487		3,272
Equities:
Common stock	89			—			87			—			27		6
Non-redeemable preferred stock	684			—			683			—			668		30
Total equities	773			—			770			—			695		36
Limited partnership investments	2,363			—			2,364			—			2,369		—
Other invested assets	48			—			48			—			44		—
Mortgage loans	865			—			864			—			839		—
Short term investments	1,308			—			1,230			(1		)	1,436		(1		)
Total investments	$	45,152		$	1,867		$	45,535		$	2,267		$	46,870	$	3,307
Net receivable/(payable) on investment activity	$	(188	)				$	(103	)				$	23
Effective duration (in years)	5.9						6.0						5.9
Weighted average rating	A						A						A

RMBS - Residential mortgage-backed securities

CMBS - Commercial mortgage-backed securities

Other ABS - Other asset-backed securities

10

Investment Summary - Property & Casualty and Corporate & Other

	June 30, 2018						March 31, 2018						December 31, 2017
(In millions)	Carrying Value			Net Unrealized Gains (Losses)			Carrying Value			Net Unrealized Gains (Losses)			Carrying Value			Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	12,855		$	(3	)	$	12,785		$	137		$	12,938		$	447
States, municipalities and political subdivisions:
Tax-exempt	1,273			40			1,983			47			2,827			112
Taxable	1,200			73			1,205			82			1,247			102
Total states, municipalities and political subdivisions	2,473			113			3,188			129			4,074			214
Asset-backed:
RMBS	4,792			(15		)	4,894			1			4,951			72
CMBS	1,969			(10		)	1,851			7			1,761			30
Other ABS	1,433			—			1,081			2			981			7
Total asset-backed	8,194			(25		)	7,826			10			7,693			109
U.S. Treasury and obligations of government-sponsored enterprises	102			(1		)	94			(6		)	82			(4		)
Foreign government	437			1			450			2			444			7
Redeemable preferred stock	5			1			5			1			5			1
Total fixed maturity securities	24,066			86			24,348			273			25,236			774
Equities:
Common stock	89			—			87			—			27			6
Non-redeemable preferred stock	178			—			230			—			237			7
Total equities	267			—			317			—			264			13
Limited partnership investments	2,363			—			2,364			—			2,369			—
Other invested assets	48			—			48			—			44			—
Mortgage loans	655			—			664			—			639			—
Short term investments	1,211			—			1,208			(1		)	1,354			(1		)
Total investments	$	28,610		$	86		$	28,949		$	272		$	29,906		$	786
Net receivable/(payable) on investment activity	$	(116	)				$	(130	)				$	(10	)
Effective duration (in years)	4.5						4.5						4.4
Weighted average rating	A-						A						A

11

Investment Summary - Life & Group

	June 30, 2018					March 31, 2018				December 31, 2017
(In millions)	Carrying Value			Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	5,780		$	738	$	5,820	$	925	$	5,872	$	1,150
States, municipalities and political subdivisions:
Tax-exempt	7,895			770		8,031		776		8,303		1,024
Taxable	1,641			270		1,658		288		1,650		311
Total states, municipalities and political subdivisions	9,536			1,040		9,689		1,064		9,953		1,335
Asset-backed:
RMBS	156			2		161		4		169		5
CMBS	103			—		104		—		111		2
Other ABS	124			—		107		1		113		4
Total asset-backed	383			2		372		5		393		11
U.S. Treasury and obligations of government-sponsored enterprises	25			1		25		1		27		2
Foreign government	—			—		—		—		—		—
Redeemable preferred stock	5			—		5		—		6		—
Total fixed maturity securities	15,729			1,781		15,911		1,995		16,251		2,498
Equities:
Common stock	—			—		—		—		—		—
Non-redeemable preferred stock	506			—		453		—		431		23
Total equities	506			—		453		—		431		23
Limited partnership investments	—			—		—		—		—		—
Other invested assets	—			—		—		—		—		—
Mortgage loans	210			—		200		—		200		—
Short term investments	97			—		22		—		82		—
Total investments	$	16,542		$	1,781	$	16,586	$	1,995	$	16,964	$	2,521
Net receivable/(payable) on investment activity	$	(72	)			$	27			$	33
Effective duration (in years)	8.2					8.3				8.4
Weighted average rating	A					A				A

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Investments - Fixed Maturity Securities by Credit Rating

June 30, 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	$	—		$	—		$	62		$	—		$	474		$	21	$	4,111		$	277		$	11,983		$	433		$	2,005		$	4	$	18,635		$	735
States, municipalities and political subdivisions:
Tax-exempt	—			—			2,099			227			3,740			325		2,990			218			321			38			18			2		9,168			810
Taxable	—			—			373			29			1,768			188		693			126			7			—			—			—		2,841			343
Total states, municipalities and political subdivisions	—			—			2,472			256			5,508			513		3,683			344			328			38			18			2		12,009			1,153
Asset-backed:
RMBS	4,223			(60		)	110			(2		)	22			—		66			—			44			1			483			48		4,948			(13		)
CMBS	42			—			322			4			449			3		306			(3		)	610			(14		)	343			—		2,072			(10		)
Other ABS	—			—			35			(3		)	176			1		697			—			649			2			—			—		1,557			—
Total asset-backed	4,265			(60		)	467			(1		)	647			4		1,069			(3		)	1,303			(11		)	826			48		8,577			(23		)
U.S. Treasury and obligations of government-sponsored enterprises	127			—			—			—			—			—		—			—			—			—			—			—		127			—
Foreign government	—			—			128			1			239			—		51			—			19			—			—			—		437			1
Redeemable preferred stock	—			—			—			—			—			—		—			—			10			1			—			—		10			1
Total fixed maturity securities	$	4,392		$	(60	)	$	3,129		$	256		$	6,868		$	538	$	8,914		$	618		$	13,643		$	461		$	2,849		$	54	$	39,795		$	1,867
Percentage of total fixed maturity securities	11		%				8		%				17		%			22		%				35		%				7		%			100		%

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Components of Net Investment Income

	Consolidated
Periods ended June 30	Three Months						Six Months
(In millions)	2018			2017			2018			2017
Taxable fixed income securities	$	354		$	353		$	704		$	701
Tax-exempt fixed income securities	100			106			205			214
Total fixed income securities	454			459			909			915
Limited partnership and common stock investments	42			16			73			106
Other, net of investment expense	10			—			14			(1		)
Pretax net investment income	$	506		$	475		$	996		$	1,020
Fixed income securities, after tax	$	375		$	333		$	752		$	664
Net investment income, after tax	416			344			821			733
Effective income yield for fixed income securities, pretax	4.7		%	4.8		%	4.7		%	4.8			%
Effective income yield for fixed income securities, after tax	3.9			3.4			3.9			3.4

	Property & Casualty and Corporate & Other
Periods ended June 30	Three Months						Six Months
(In millions)	2018			2017			2018			2017
Taxable fixed income securities	$	240		$	237		$	473		$	470
Tax-exempt fixed income securities	14			23			34			46
Total fixed income securities	254			260			507			516
Limited partnership and common stock investments	42			16			73			106
Other, net of investment expense	12			4			18			6
Pretax net investment income	$	308		$	280		$	598		$	628
Fixed income securities, after tax	$	203		$	178		$	406		$	353
Net investment income, after tax	245			191			478			426
Effective income yield for fixed income securities, pretax	4.2		%	4.2		%	4.2		%	4.2		%
Effective income yield for fixed income securities, after tax	3.4			2.9			3.3			2.9

	Life & Group
Periods ended June 30	Three Months								Six Months
(In millions)	2018				2017				2018				2017
Taxable fixed income securities	$	114			$	116			$	231			$	231
Tax-exempt fixed income securities	86				83				171				168
Total fixed income securities	200				199				402				399
Limited partnership and common stock investments	—				—				—				—
Other, net of investment expense	(2		)		(4		)		(4		)		(7		)
Pretax net investment income	$	198			$	195			$	398			$	392
Fixed income securities, after tax	$	172			$	155			$	346			$	311
Net investment income, after tax	171				153				343				307
Effective income yield for fixed income securities, pretax	5.6			%	5.7			%	5.6			%	5.7			%
Effective income yield for fixed income securities, after tax	4.8				4.4				4.8				4.5

14

Claim & Claim Adjustment Expense Reserve Rollforward

Three months ended June 30, 2018 (In millions)	Specialty			Commercial			International			P&C Operations			Life & Group			Corporate & Other			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	5,696		$	8,718		$	1,718		$	16,132		$	3,501		$	2,434		$	22,067
Ceded	726			652			240			1,618			208			2,231			4,057
Net	4,970			8,066			1,478			14,514			3,293			203			18,010
Net incurred claim & claim adjustment expenses	372			471			166			1,009			263			1			1,273
Net claim & claim adjustment expense payments	(439		)	(588		)	(133		)	(1,160		)	(225		)	(4		)	(1,389		)
Foreign currency translation adjustment and other	—			—			(57		)	(57		)	(5		)	1			(61		)
Claim & claim adjustment expense reserves, end of period
Net	4,903			7,949			1,454			14,306			3,326			201			17,833
Ceded	913			650			252			1,815			196			2,146			4,157
Gross	$	5,816		$	8,599		$	1,706		$	16,121		$	3,522		$	2,347		$	21,990

Six months ended June 30, 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	751			939			308			1,998			532			2			2,532
Net claim & claim adjustment expense payments	(855		)	(1,124		)	(247		)	(2,226		)	(465		)	(8		)	(2,699		)
Foreign currency translation adjustment and other	—			(2		)	(39		)	(41		)	(31		)	2			(70		)
Claim & claim adjustment expense reserves, end of period
Net	4,903			7,949			1,454			14,306			3,326			201			17,833
Ceded	913			650			252			1,815			196			2,146			4,157
Gross	$	5,816		$	8,599		$	1,706		$	16,121		$	3,522		$	2,347		$	21,990

15

Life & Group Policyholder Reserves

June 30, 2018
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,643	$	9,057	$	11,700
Structured settlement annuities	539		—		539
Other	17		—		17
Total	3,199		9,057		12,256
Shadow adjustments	127		1,374		1,501
Ceded reserves	196		236		432
Total gross reserves	$	3,522	$	10,667	$	14,189

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

16

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.

17

• 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

18