Exhibit

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		%

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.

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.

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		%

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		%

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		%

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		%

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	)	%

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	)	%

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

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

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

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		%

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

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

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

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