0000021175-19-000107.txt : 20191028 0000021175-19-000107.hdr.sgml : 20191028 20191028084724 ACCESSION NUMBER: 0000021175-19-000107 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 17 CONFORMED PERIOD OF REPORT: 20191028 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20191028 DATE AS OF CHANGE: 20191028 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CNA FINANCIAL CORP CENTRAL INDEX KEY: 0000021175 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 366169860 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05823 FILM NUMBER: 191171272 BUSINESS ADDRESS: STREET 1: CNA STREET 2: 151 N. FRANKLIN CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3128225000 MAIL ADDRESS: STREET 1: CNA STREET 2: 151 N. FRANKLIN CITY: CHICAGO STATE: IL ZIP: 60606 8-K 1 a2019q38k.htm 8-K Document
false0000021175Common Stock, Par value $2.50"CNA" 0000021175 2019-10-28 2019-10-28 0000021175 exch:XNYS 2019-10-28 2019-10-28 0000021175 exch:XCHI 2019-10-28 2019-10-28


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) October 28, 2019

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, IL 60606
(Address of principal executive offices) (Zip Code)
(312) 822-5000
(Registrant's telephone number, including area code)

NOT APPLICABLE
(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))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, Par value $2.50
 
"CNA"
 
New York Stock Exchange
 
 
 
 
Chicago Stock Exchange
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 October 28, 2019, 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 third quarter 2019. 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.







EXHIBIT INDEX

Exhibit No.
 
Description
 
CNA Financial Corporation press release, issued October 28, 2019, providing information on the third quarter 2019 results of operations.
 
 
 
 
CNA Financial Corporation financial supplement, posted on its website October 28, 2019, providing supplemental financial information on the third quarter 2019.
 
 
 
101.SCH
 
Inline XBRL Taxonomy Extension Schema
 
 
 
101.CAL
 
Inline XBRL Taxonomy Extension Calculation Linkbase
 
 
 
101.DEF
 
Inline XBRL Taxonomy Extension Definition Linkbase
 
 
 
101.LAB
 
Inline XBRL Taxonomy Label Linkbase
 
 
 
101.PRE
 
Inline XBRL Taxonomy Extension Presentation Linkbase
 
 
 
104
 
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)






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:  October 28, 2019
By
/s/ James M. Anderson
 
 
(Signature)
 
 
James M. Anderson
Executive Vice President and
Chief Financial Officer




EX-99.1 2 q3-19exhibit991.htm EXHIBIT 99.1 Exhibit
cnalogoq32019.gif

FOR IMMEDIATE RELEASE

CONTACT:
MEDIA:
 
ANALYSTS:
Brandon Davis, 312-822-5885
 
James Anderson, 312-822-7757
CNA FINANCIAL ANNOUNCES THIRD QUARTER 2019 RESULTS
Q3 NET INCOME OF $107M, $0.39 PER SHARE, INCLUDES LTC GPV CHARGE OF $170M AND LTC CLAIM RESERVE RELEASE OF $44M
Q3 CORE INCOME OF $102M, $0.37 PER SHARE, INCLUDES LTC GPV CHARGE OF $170M AND LTC CLAIM RESERVE RELEASE OF $44M
Q3 P&C UNDERLYING COMBINED RATIO OF 94.6%
Q3 P&C UNDERLYING LOSS RATIO OF 61.7%, EXPENSE RATIO OF 32.5%
P&C NET WRITTEN PREMIUM GROWTH OF 8%
QUARTERLY DIVIDEND OF $0.35 PER SHARE
CHICAGO, October 28, 2019 --- CNA Financial Corporation (NYSE: CNA) today announced third quarter 2019 net income of $107 million, or $0.39 per share, and core income of $102 million, or $0.37 per share. Net income for the nine months ended September 30, 2019 was $727 million, or $2.67 per share, and core income was $714 million, or $2.62 per share. Property & Casualty Operations combined ratio for the third quarter was 97.6% and the underlying combined ratio was 94.6%. Net investment income, after tax, was $399 million for the third quarter of 2019, including $13 million from limited partnership and common stock investments.
Property & Casualty segments, excluding third party captives, generated gross written premium growth of 9% and net written premium growth of 8% for the third quarter of 2019.
Core loss for the third quarter of 2019 for our Life & Group segment was $(122) million. Life & Group results include a $170 million after-tax charge related to unlocking active life reserves to recognize a premium deficiency as a result of the gross premium valuation (GPV) completed in the quarter and a $44 million after-tax reduction in claim reserves resulting from the annual claim experience study. Core loss for our Corporate & Other segment was $(17) million.
CNA Financial declared a quarterly dividend of $0.35 per share, payable December 2, 2019 to stockholders of record on November 11, 2019.
 
Results for the Three Months Ended September 30
 
Results for the Nine Months Ended September 30
($ millions, except per share data)
2019
 
2018
 
2019
 
2018
Net income
$
107

 
$
336

 
$
727

 
$
897

Core income (a)
102

 
317

 
714

 
868

 
 
 
 
 
 
 
 
Net income per diluted share
$
0.39

 
$
1.23

 
$
2.67

 
$
3.29

Core income per diluted share
0.37

 
1.17

 
2.62

 
3.19

 
September 30, 2019
 
December 31, 2018
Book value per share
$
44.66

 
$
41.32

Book value per share excluding AOCI
44.14

 
44.55

(a)
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


“Our third quarter results reflect the ongoing strength of our P&C business, which delivered an underlying combined ratio of 94.6%, net written premium growth of 8% and rate increases of 6%,” said Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.  “In addition, the changes made to our Long Term Care assumptions as a part of our annual reserve review reflect our continued prudent management of this runoff portfolio.”

Property & Casualty Operations
 
Results for the Three Months Ended September 30
 
Results for the Nine Months Ended September 30
($ millions)
2019
 
2018
 
2019
 
2018
Gross written premiums ex. 3rd party captives
$
1,856

 
 
$
1,701

 
 
$
5,843

 
 
$
5,497

 
GWP ex. 3rd party captives change (% year over year)
9

%
 
 
 
 
6

%
 
 
 
Net written premiums
$
1,708

 
 
$
1,581

 
 
$
5,388

 
 
$
5,163

 
NWP change (% year over year)
8

%
 
 
 
 
4

%
 


 
Net investment income
$
274

 
 
$
282

 
 
$
937

 
 
$
869

 
Core income
241

 
 
305

 
 
853

 
 
951

 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio excluding catastrophes and development
61.7

%
 
61.1

%
 
61.1

%
 
60.8

%
Effect of catastrophe impacts
1.8

 
 
2.6

 
 
2.5

 
 
2.1

 
Effect of development-related items
1.2

 
 
(3.2
)
 
 
(0.2
)
 
 
(2.8
)
 
Loss ratio
64.7

%
 
60.5

%
 
63.4

%
 
60.1

%
 
 
 
 
 
 
 
 
 
 
 
 
Expense ratio
32.5

%
 
33.3

%
 
33.3

%
 
33.2

%
 
 
 
 
 
 
 
 
 
 
 
 
Combined ratio
97.6

%
 
94.2

%
 
97.1

%
 
93.7

%
Combined ratio excluding catastrophes and development
94.6

%
 
94.8

%
 
94.8

%
 
94.4

%
The combined ratio excluding catastrophes and development improved 0.2 points for the third quarter of 2019 as compared with the prior year quarter. The expense ratio improved 0.8 points driven by a favorable acquisition ratio in the current quarter. This was partially offset by a 0.6 point increase in the underlying loss ratio.
The combined ratio increased 3.4 points for the third quarter of 2019 as compared with the prior year quarter. Net catastrophe losses were $32 million, or 1.8 points of the loss ratio in the quarter compared with $46 million, or 2.6 points of the loss ratio, for the prior year quarter. Unfavorable net prior period development increased the loss ratio by 1.2 points in the quarter driven by legacy reserves within Commercial compared with 3.2 points of favorable development decreasing the loss ratio in the prior year quarter.
Net written premiums grew 8% as compared with the prior year quarter. U.S. P&C segments net written premiums grew 9%.


2


Business Operating Highlights
Specialty
 
Results for the Three Months Ended September 30
 
Results for the Nine Months Ended September 30
($ millions)
2019
 
2018
 
2019
 
2018
Gross written premiums ex. 3rd party captives
$
778

 
 
$
714

 
 
$
2,263

 
 
$
2,130

 
GWP ex. 3rd party captives change (% year over year)
9

%
 
 
 
 
6

%
 
 
 
Net written premiums
$
732

 
 
$
688

 
 
$
2,143

 
 
$
2,062

 
NWP change (% year over year)
6

%
 


 
 
4

%
 


 
Core income
$
153

 
 
$
177

 
 
$
483

 
 
$
531

 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio excluding catastrophes and development
60.1

%
 
59.8

%
 
60.2

%
 
60.2

%
Effect of catastrophe impacts
0.5

 
 
2.4

 
 
0.8

 
 
1.1

 
Effect of development-related items
(2.8
)
 
 
(7.7
)
 
 
(2.9
)
 
 
(6.2
)
 
Loss ratio
57.8

%
 
54.5

%
 
58.1

%
 
55.1

%
 
 
 
 
 
 
 
 
 
 
 
 
Expense ratio
31.8

%
 
32.3

%
 
32.6

%
 
31.8

%
 
 
 
 
 
 
 
 
 
 
 
 
Combined ratio
89.8

%
 
87.0

%
 
90.9

%
 
87.1

%
Combined ratio excluding catastrophes and development
92.1

%
 
92.3

%
 
93.0

%
 
92.2

%
The combined ratio excluding catastrophes and development improved 0.2 points for the third quarter of 2019 as compared with the prior year quarter. The expense ratio improved 0.5 points driven by a favorable acquisition ratio in the current quarter. This was partially offset by a 0.3 point increase in the underlying loss ratio.
The combined ratio increased 2.8 points for the third quarter of 2019 as compared with the prior year quarter. Net catastrophe losses were $3 million, or 0.5 points of the loss ratio compared with $16 million, or 2.4 points of the loss ratio, for the prior year quarter. Favorable net prior period development improved the loss ratio by 2.8 points in the quarter compared with a 7.7 point improvement in the prior year quarter.
Net written premiums for Specialty grew 6% for the third quarter of 2019 as compared with the prior year quarter driven by strong retention and favorable rate.

3


Commercial
 
Results for the Three Months Ended September 30
 
Results for the Nine Months Ended September 30
($ millions)
2019
 
2018
 
2019
 
2018
Gross written premiums ex. 3rd party captives
$
852

 
 
$
756

 
 
$
2,742

 
 
$
2,483

 
GWP ex. 3rd party captives change (% year over year)
13

%
 
 
 
 
10

%
 
 
 
Net written premiums
$
775

 
 
$
697

 
 
$
2,536

 
 
$
2,339

 
NWP change (% year over year)
11

%
 



 
8

%
 



Core income
$
97

 
 
$
127

 
 
$
356

 
 
$
403

 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio excluding catastrophes and development
61.5

%
 
60.4

%
 
61.8

%
 
60.4

%
Effect of catastrophe impacts
3.0

 
 
3.1

 
 
4.3

 
 
3.1

 
Effect of development-related items
4.8

 
 

 
 
1.5

 
 
(0.5
)
 
Loss ratio
69.3

%
 
63.5

%
 
67.6

%
 
63.0

%
 
 
 
 
 
 
 
 
 
 
 
 
Expense ratio
31.7

%
 
33.2

%
 
32.7

%
 
33.3

%
 
 
 
 
 
 
 
 
 
 
 
 
Combined ratio
101.6

%
 
97.4

%
 
100.9

%
 
97.0

%
Combined ratio excluding catastrophes and development
93.8

%
 
94.3

%
 
95.1

%
 
94.4

%
The combined ratio excluding catastrophes and development improved 0.5 points for the third quarter of 2019 as compared with the prior year quarter. The expense ratio improved 1.5 points driven by a favorable acquisition ratio in the current quarter. This was partially offset by a 1.1 point increase in the underlying loss ratio.
The combined ratio increased 4.2 points for the third quarter of 2019 as compared with the prior year quarter. Net catastrophe losses were $25 million, or 3.0 points of the loss ratio compared with $25 million, or 3.1 points of the loss ratio, for the prior year quarter. Unfavorable net prior period development increased the loss ratio by 4.8 points in the quarter driven by legacy reserves from accident years 2009 and prior compared with no net prior year development effect in the prior year quarter.
Net written premiums for Commercial grew 11% for the third quarter of 2019 as compared with the prior year quarter driven by higher new business and favorable rate.


4


International
 
Results for the Three Months Ended September 30
 
Results for the Nine Months Ended September 30
($ millions)
2019
 
2018
 
2019
 
2018
Gross written premiums
$
226

 
 
$
230

 
 
$
837

 
 
$
884

 
GWP change (% year over year)
(2
)
%
 
 
 
 
(5
)
%
 
 
 
Net written premiums
$
201

 
 
$
196

 
 
$
709

 
 
$
762

 
NWP change (% year over year)
3

%
 


 
 
(7
)
%
 


 
Core income (loss)
$
(9
)
 
 
$
1

 
 
$
14

 
 
$
17

 
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio excluding catastrophes and development
67.3

%
 
66.3

%
 
61.4

%
 
64.1

%
Effect of catastrophe impacts
1.7

 
 
2.1

 
 
1.4

 
 
1.5

 
Effect of development-related items
0.4

 
 
(0.8
)
 
 
1.9

 
 
(0.6
)
 
Loss ratio
69.4

%
 
67.6

%
 
64.7

%
 
65.0

%
 
 
 
 
 
 
 
 
 
 
 
 
Expense ratio
38.0

%
 
36.3

%
 
37.5

%
 
36.8

%
 
 
 
 
 
 
 
 
 
 
 
 
Combined ratio
107.4

%
 
103.9

%
 
102.2

%
 
101.8

%
Combined ratio excluding catastrophes and development
105.3

%
 
102.6

%
 
98.9

%
 
100.9

%
The combined ratio excluding catastrophes and development increased 2.7 points for the third quarter of 2019 as compared with the prior year quarter driven by a 1.7 point increase in the expense ratio and a 1.0 point increase in the underlying loss ratio.
The combined ratio increased 3.5 points for the third quarter of 2019 as compared with the prior year quarter. Net catastrophe losses were $4 million, or 1.7 points of the loss ratio compared with $5 million, or 2.1 points for the prior year quarter. Unfavorable net prior period development increased the loss ratio by 0.4 points in the quarter compared with 0.8 points of favorable development decreasing the loss ratio in the prior year quarter.
Excluding currency fluctuations, net written premiums for International increased 5% for the third quarter of 2019 as compared with the prior year quarter driven by a change in the timing of ceded reinsurance contract renewals.

5


Life & Group
 
Results for the Three Months Ended September 30
 
Results for the Nine Months Ended September 30
($ millions)
2019
 
2018
 
2019
 
2018
Net investment income
$
207

 
 
$
200

 
 
$
616

 
 
$
598

 
Total operating revenues
336

 
 
332

 
 
1,006

 
 
996

 
Core (loss) income
(122
)
 
 
32

 
 
(105
)
 
 
36

 
Core results decreased $154 million for the third quarter of 2019 as compared with the prior year quarter. The decrease was driven by a $170 million charge related to recognition of an active life reserve premium deficiency primarily driven by lower discount rate assumptions partially offset by a $44 million reduction in long term care claim reserves resulting from the annual claim experience study. The prior year quarter included a $24 million reduction in long term care claims reserves resulting from the 2018 annual claim experience study.
Corporate & Other
 
Results for the Three Months Ended September 30
 
Results for the Nine Months Ended September 30
($ millions)
2019
 
2018
 
2019
 
2018
Net investment income
$
6

 
 
$
5

 
 
$
20

 
 
$
16

 
Interest expense
31

 
 
33

 
 
99

 
 
101

 
Core loss
(17
)
 
 
(20
)
 
 
(34
)
 
 
(119
)
 
Core loss of $(17) million improved $3 million for the third quarter of 2019 as compared with the prior year quarter. The prior period included $4 million of non-recurring costs associated with the transition to a new IT infrastructure service provider.
Net Investment Income
 
Results for the Three Months Ended September 30
 
Results for the Nine Months Ended September 30
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Pretax net investment income
$
487

 
 
487

 
 
$
1,573

 
 
$
1,483

 
Net investment income, after tax
399

 
 
400

 
 
1,284

 
 
1,221

 
Net investment income, after tax, decreased $1 million for the third quarter of 2019 as compared with the prior year quarter.

6


About the Company
CNA is one of the largest U.S. commercial property and casualty insurance companies. 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 and Europe, backed by more than 120 years of experience and approximately $45 billion of assets.  For more information, please visit CNA at www.cna.com.
Conference Call and Webcast/Presentation Information
A conference call for investors and the professional investment community will be held at 9:00 a.m. (CT) today. On the conference call will be Dino E. Robusto, Chairman and Chief Executive Officer of CNA Financial Corporation, James M. Anderson, Executive Vice President and Chief Financial Officer of CNA Financial Corporation and other members of senior management. Participants can access the call by dialing (800) 289-0571, or for international callers, +1 (720) 543-0206. The call will also be broadcast live on the internet and may be accessed from the Investor Relations page of the CNA website (www.cna.com). 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 a network of brokers and independent agents to market a broad range of property and casualty insurance products and services to small, middle-market and large businesses.
International underwrites property and casualty coverages on a global basis through its U.K.-based insurance company, a branch operation in Canada as well as through its presence at Lloyd’s of London (Hardy).
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. For certain products within Small Business, where quantifiable, rate includes the influence of new business as well.
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.
Gross written premiums ex. 3rd party captives excludes business which is mostly ceded to third party captives, including business related to large warranty programs.
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 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 investment gains or losses because net 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 September 30
 
Results for the Nine Months Ended September 30
($ millions)
2019
 
2018
 
2019
 
2018
Net income
$
107

 
$
336

 
$
727

 
$
897

Less: Net investment gains
5

 
13

 
13

 
23

Less: Net deferred tax asset remeasurement

 
6

 

 
6

Core income
$
102

 
$
317

 
$
714

 
$
868

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 (loss) per diluted share is core income (loss) on a per diluted share basis.
 
Results for the Three Months Ended September 30
 
Results for the Nine Months Ended September 30
 
2019
 
2018
 
2019
 
2018
Net income per diluted share
$
0.39

 
$
1.23

 
$
2.67

 
$
3.29

Less: Net investment gains
0.02

 
0.04

 
0.05

 
0.08

Less: Net deferred tax asset remeasurement

 
0.02

 

 
0.02

Core income per diluted share
$
0.37

 
$
1.17

 
$
2.62

 
$
3.19

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.
 
September 30, 2019
 
December 31, 2018
Book value per share
$
44.66

 
$
41.32

Less: Per share impact of AOCI
0.52

 
(3.23
)
Book value per share excluding AOCI
$
44.14

 
$
44.55


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 September 30
 
Results for the Nine Months Ended September 30
 
($ millions)
2019
 
2018
 
2019
 
2018
 
Annualized net income
$
428

 
$
1,343

 
$
970

 
$
1,196

 
Average stockholders' equity including AOCI (a)
12,105

 
11,463

 
11,670

 
11,877

 
Return on equity
3.5

%
11.7

%
8.3

%
10.1

%
 
 
 
 
 
 
 
 
 
Annualized core income
$
406

 
$
1,270

 
$
952

 
$
1,158

 
Average stockholders' equity excluding AOCI (a)
11,975

 
12,143

 
12,039

 
12,239

 
Core return on equity
3.4

%
10.5

%
7.9

%
9.5

%
(a)
Average stockholders' equity is calculated using a simple average of the beginning and ending balances for the period.
For additional information, please refer 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 Statements
This press release includes statements that 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 please refer to CNA’s filings 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.
Any descriptions of coverage under CNA policies or programs in this press release are provided for convenience only and are not to be relied upon with respect to questions of coverage, exclusions or limitations. With regard to all such matters, the terms and provisions of relevant insurance policies are primary and controlling. In addition, please note that all coverages may not be available in all states.
“CNA" is a registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the "CNA" trademark in connection with insurance underwriting and claims activities. Copyright © 2019 CNA. All rights reserved.
# # #

9
EX-99.2 3 q3-19exhibit992.htm EXHIBIT 99.2 Exhibit



cnalogoq32019.gif

 
 
 
 
 



CNA Financial Corporation
Supplemental Financial Information


September 30, 2019



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





Statements of Operations
Periods ended September 30
Three Months
 
 
Nine Months
 
(In millions)
2019
 
2018
 
Change
 
 
2019
 
2018
 
Change
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earned premiums
$
1,890

 
$
1,853

 
2

%
 
$
5,517

 
$
5,453

 
1

%
Net investment income
487

 
487

 

 
 
1,573

 
1,483

 
6

 
Net investment gains (losses):
 
 
 
 
 
 
 
 
 
 
 
 
 
Other-than-temporary impairment (OTTI) losses
(14
)
 
(3
)
 
 
 
 
(34
)
 
(9
)
 

 
Other net investment gains (losses)
21

 
17

 
 
 
 
54

 
34

 


 
Net investment gains (losses)
7

 
14

 
 
 
 
20

 
25

 


 
Non-insurance warranty revenue
292

 
258

 
 
 
 
858

 
744

 
 
 
Other revenues
9

 
10

 
 
 
 
22

 
26

 

 
Total revenues
2,685

 
2,622

 
2

 
 
7,990

 
7,731

 
3

 
Claims, Benefits and Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Insurance claims and policyholders' benefits
1,614

 
1,312

 
 
 
 
4,323

 
3,978

 


 
Amortization of deferred acquisition costs
345

 
337

 
 
 
 
1,025

 
992

 


 
Non-insurance warranty expense
278

 
235

 
 
 
 
801

 
676

 
 
 
Other operating expenses
289

 
302

 
 
 
 
853

 
903

 


 
Interest
32

 
34

 
 
 
 
100

 
104

 


 
Total claims, benefits and expenses
2,558

 
2,220

 
(15
)
 
 
7,102

 
6,653

 
(7
)
 
Income (loss) before income tax
127

 
402

 
 
 
 
888

 
1,078

 


 
Income tax (expense) benefit
(20
)
 
(66
)
 
 
 
 
(161
)
 
(181
)
 


 
Net income (loss)
$
107

 
$
336

 
(68
)
%
 
$
727

 
$
897

 
(19
)
%

1





Components of Income (Loss), Per Share Data and Return on Equity
Periods ended September 30
Three Months
 
 
Nine Months
 
(In millions, except per share data)
2019
 
2018
 
 
2019
 
2018
 
Components of Income (Loss)
 
 
 
 
 
 
 
 
 
Core income (loss)
$
102

 
$
317

 
 
$
714

 
$
868

 
Net investment gains (losses)
5

 
13

 
 
13

 
23

 
Net deferred tax asset remeasurement

 
6

 
 

 
6

 
Net income (loss)
$
107

 
$
336

 
 
$
727

 
$
897

 
 
 
 
 
 
 
 
 
 
 
Diluted Earnings (Loss) Per Common Share
 
 
 
 
 
 
 
 
 
Core income (loss)
$
0.37

 
$
1.17

 
 
$
2.62

 
$
3.19

 
Net investment gains (losses)
0.02

 
0.04

 
 
0.05

 
0.08

 
Net deferred tax asset remeasurement

 
0.02

 
 

 
0.02

 
Diluted earnings (loss) per share
$
0.39

 
$
1.23

 
 
$
2.67


$
3.29

 
 
 
 
 
 
 
 
 
 
 
Weighted Average Outstanding Common Stock and Common Stock Equivalents
 
 
 
 
 
 
 
 
 
Basic
271.6

 
271.6

 
 
271.6

 
271.5

 
Diluted
272.6

 
272.5

 
 
272.5

 
272.4

 
 
 
 
 
 
 
 
 
 
 
Return on Equity
 
 
 
 
 
 
 
 
 
Net income (loss) (1)
3.5

%
11.7

%
 
8.3

%
10.1

%
Core income (loss) (2)
3.4

 
10.5

 
 
7.9

 
9.5

 
(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)
September 30, 2019
 
December 31, 2018
Total investments
$
47,535

 
$
44,486

Reinsurance receivables, net of allowance for uncollectible receivables
4,063

 
4,426

Total assets
60,450

 
57,152

Insurance reserves
38,509

 
36,764

Debt
2,678

 
2,680

Total liabilities
48,327

 
45,935

Accumulated other comprehensive income (loss) (1)
139

 
(878
)
Total stockholders' equity
12,123

 
11,217

 
 
 
 
Book value per common share
$
44.66

 
$
41.32

Book value per common share excluding AOCI
$
44.14

 
$
44.55

 
 
 
 
Outstanding shares of common stock (in millions of shares)
271.5

 
271.5

 
 
 
 
Statutory capital and surplus - Combined Continental Casualty Companies (2)
$
10,554

 
$
10,411


Three months ended September 30
2019
 
2018
Net cash flows provided (used) by operating activities
$
466

 
$
514

Net cash flows provided (used) by investing activities
(293
)
 
(359
)
Net cash flows provided (used) by financing activities
(99
)
 
(134
)
Net cash flows provided (used) by operating, investing and financing activities
$
74

 
$
21


Nine months ended September 30
2019
 
2018
Net cash flows provided (used) by operating activities
$
980

 
$
868

Net cash flows provided (used) by investing activities
(60
)
 
80

Net cash flows provided (used) by financing activities
(887
)
 
(989
)
Net cash flows provided (used) by operating, investing and financing activities
$
33

 
$
(41
)
(1) As of September 30, 2019 and December 31, 2018, the net unrealized gains on investments included in AOCI were net of after-tax Shadow Adjustments of $2,237 million and $1,078 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 September 30, 2019 is preliminary.

3





Property & Casualty - Results of Operations
Periods ended September 30
Three Months
 
 
Nine Months
 
(In millions)
2019
 
2018
 
Change
 
 
2019
 
2018
 
Change
 
Gross written premiums
$
2,852

 
$
2,703

 
6

%
 
$
8,853

 
$
8,669

 
2

%
Gross written premiums ex. 3rd party captives
1,856

 
1,701

 
9

 
 
5,843

 
5,497

 
6

 
Net written premiums
1,708

 
1,581

 
8

 
 
5,388

 
5,163

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earned premiums
1,761

 
1,721

 
2

 
 
5,129

 
5,056

 
1

 
Net investment income
274

 
282

 
 
 
 
937

 
869

 


 
Non-insurance warranty revenue
292

 
258

 
 
 
 
858

 
744

 
 
 
Other revenues
10

 
9

 
 
 
 
21

 
25

 


 
Total operating revenues
2,337

 
2,270

 
3

 
 
6,945

 
6,694

 
4

 
Insurance claims and policyholders' benefits
1,145

 
1,047

 
 
 
 
3,270

 
3,056

 


 
Amortization of deferred acquisition costs
345

 
337

 
 
 
 
1,025

 
992

 


 
Non-insurance warranty expense
278

 
235

 
 
 
 
801

 
676

 
 
 
Other insurance related expenses
229

 
237

 
 
 
 
683

 
690

 


 
Other expenses
29

 
24

 
 
 
 
78

 
71

 


 
Total claims, benefits and expenses
2,026

 
1,880

 
(8
)
 
 
5,857

 
5,485

 
(7
)
 
Core income (loss) before income tax
311

 
390

 
 
 
 
1,088

 
1,209

 


 
Income tax (expense) benefit on core income (loss)
(70
)
 
(85
)
 
 
 
 
(235
)
 
(258
)
 


 
Core income (loss)
$
241

 
$
305

 
(21
)
%
 
$
853

 
$
951

 
(10
)
%
 
 
 
 
 
 
 
 
 
 
 
 


 
Other Performance Metrics
 
 
 
 
 
 
 
 
 
 
 


 
Underwriting gain (loss)
$
42

 
$
100

 
(58
)
%
 
$
151

 
$
318

 
(53
)
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss & LAE ratio
64.7

%
60.5

%
(4.2
)
pts
 
63.4

%
60.1

%
(3.3
)
pts
Expense ratio
32.5

 
33.3

 
0.8

 
 
33.3

 
33.2

 
(0.1
)
 
Dividend ratio
0.4

 
0.4

 

 
 
0.4

 
0.4

 

 
Combined ratio
97.6

%
94.2

%
(3.4
)
pts
 
97.1

%
93.7

%
(3.4
)
pts
Combined ratio excluding catastrophes and development
94.6

%
94.8

%
0.2

pts
 
94.8

%
94.4

%
(0.4
)
pts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net accident year catastrophe losses incurred
$
32

 
$
46

 
 
 
 
$
128

 
$
106

 

 
Effect on loss & LAE ratio
1.8

%
2.6

%
0.8

pts
 
2.5

%
2.1

%
(0.4
)
pts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net prior year development and other: (favorable) / unfavorable
$
21

 
$
(54
)
 
 
 
 
$
(7
)
 
$
(142
)
 


 
Effect on loss & LAE ratio
1.2

%
(3.2
)
%
(4.4
)
pts
 
(0.2
)
%
(2.8
)
%
(2.6
)
pts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rate
6

%
2

%
4

pts
 
4

%
2

%
2

pts
Renewal premium change
6

%
5

%
1

pts
 
5

%
5

%

pts
Retention
83

%
83

%

pts
 
83

%
84

%
(1
)
pts
New business
$
316

 
$
286

 
10

%
 
$
1,004

 
$
974

 
3

%

4





Specialty - Results of Operations
Periods ended September 30
Three Months
 
 
Nine Months
 
(In millions)
2019
 
2018
 
Change
 
 
2019
 
2018
 
Change
 
Gross written premiums
$
1,766

 
$
1,715

 
3

%
 
$
5,191

 
$
5,222

 
(1
)
%
Gross written premiums ex. 3rd party captives
778

 
714

 
9

 
 
2,263

 
2,130

 
6

 
Net written premiums
732

 
688

 
6

 
 
2,143

 
2,062

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earned premiums
712

 
684

 
4

 
 
2,061

 
2,039

 
1

 
Net investment income
121

 
124

 
 
 
 
410

 
376

 


 
Non-insurance warranty revenue
292

 
258

 
 
 
 
858

 
744

 
 
 
Other revenues
1

 

 
 
 
 
1

 
1

 


 
Total operating revenues
1,126

 
1,066

 
6

 
 
3,330

 
3,160

 
5

 
Insurance claims and policyholders' benefits
413

 
374

 
 
 
 
1,202

 
1,127

 


 
Amortization of deferred acquisition costs
155

 
153

 
 
 
 
454

 
447

 


 
Non-insurance warranty expense
278

 
235

 
 
 
 
801

 
676

 
 
 
Other insurance related expenses
71

 
68

 
 
 
 
217

 
202

 


 
Other expenses
13

 
11

 
 
 
 
37

 
34

 


 
Total claims, benefits and expenses
930

 
841

 
(11
)
 
 
2,711

 
2,486

 
(9
)
 
Core income (loss) before income tax
196

 
225

 
 
 
 
619

 
674

 


 
Income tax (expense) benefit on core income (loss)
(43
)
 
(48
)
 
 
 
 
(136
)
 
(143
)
 


 
Core income (loss)
$
153

 
$
177

 
(14
)
%
 
$
483

 
$
531

 
(9
)
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Performance Metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting gain (loss)
$
73

 
$
89

 
(18
)
%
 
$
188

 
$
263

 
(29
)
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss & LAE ratio
57.8

%
54.5

%
(3.3
)
pts
 
58.1

%
55.1

%
(3.0
)
pts
Expense ratio
31.8

 
32.3

 
0.5

 
 
32.6

 
31.8

 
(0.8
)
 
Dividend ratio
0.2

 
0.2

 

 
 
0.2

 
0.2

 

 
Combined ratio
89.8

%
87.0

%
(2.8
)
pts
 
90.9

%
87.1

%
(3.8
)
pts
Combined ratio excluding catastrophes and development
92.1

%
92.3

%
0.2

pts
 
93.0

%
92.2

%
(0.8
)
pts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net accident year catastrophe losses incurred
$
3

 
$
16

 
 
 
 
$
16

 
$
22

 


 
Effect on loss & LAE ratio
0.5

%
2.4

%
1.9

pts
 
0.8

%
1.1

%
0.3

pts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net prior year development and other: (favorable) / unfavorable
$
(20
)
 
$
(52
)
 
 
 
 
$
(58
)
 
$
(126
)
 


 
Effect on loss & LAE ratio
(2.8
)
%
(7.7
)
%
(4.9
)
pts
 
(2.9
)
%
(6.2
)
%
(3.3
)
pts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rate
6

%
2

%
4

pts
 
4

%
2

%
2

pts
Renewal premium change
8

%
5

%
3

pts
 
6

%
5

%
1

pts
Retention
87

%
85

%
2

pts
 
88

%
84

%
4

pts
New business
$
91

 
$
93

 
(2
)
%
 
$
274

 
$
266

 
3

%

5





Commercial - Results of Operations
Periods ended September 30
Three Months
 
 
Nine Months
 
(In millions)
2019
 
2018
 
Change
 
 
2019
 
2018
 
Change
 
Gross written premiums
$
860

 
$
758

 
13

%
 
$
2,825

 
$
2,563

 
10

%
Gross written premiums ex. 3rd party captives
852

 
756

 
13

 
 
2,742

 
2,483

 
10

 
Net written premiums
775

 
697

 
11

 
 
2,536

 
2,339

 
8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earned premiums
813

 
782

 
4

 
 
2,339

 
2,278

 
3

 
Net investment income
136

 
144

 
 
 
 
480

 
450

 


 
Other revenues
10

 
8

 
 
 
 
20

 
24

 


 
Total operating revenues
959

 
934

 
3

 
 
2,839

 
2,752

 
3

 
Insurance claims and policyholders' benefits
569

 
501

 
 
 
 
1,596

 
1,449

 


 
Amortization of deferred acquisition costs
134

 
127

 
 
 
 
391

 
375

 


 
Other insurance related expenses
123

 
133

 
 
 
 
372

 
386

 


 
Other expenses
9

 
10

 
 
 
 
27

 
31

 


 
Total claims, benefits and expenses
835

 
771

 
(8
)
 
 
2,386

 
2,241

 
(6
)
 
Core income (loss) before income tax
124

 
163

 
 
 
 
453

 
511

 


 
Income tax (expense) benefit on core income (loss)
(27
)
 
(36
)
 
 
 
 
(97
)
 
(108
)
 


 
Core income (loss)
$
97

 
$
127

 
(24
)
%
 
$
356

 
$
403

 
(12
)
%
 
 
 
 
 
 
 
 
 
 
 
 


 
Other Performance Metrics
 
 
 
 
 
 
 
 
 
 
 


 
Underwriting gain (loss)
$
(13
)
 
$
21

 
(162
)
%
 
$
(20
)
 
$
68

 
(129
)
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss & LAE ratio
69.3

%
63.5

%
(5.8
)
pts
 
67.6

%
63.0

%
(4.6
)
pts
Expense ratio
31.7

 
33.2

 
1.5

 
 
32.7

 
33.3

 
0.6

 
Dividend ratio
0.6

 
0.7

 
0.1

 
 
0.6

 
0.7

 
0.1

 
Combined ratio
101.6

%
97.4

%
(4.2
)
pts
 
100.9

%
97.0

%
(3.9
)
pts
Combined ratio excluding catastrophes and development
93.8

%
94.3

%
0.5

pts
 
95.1

%
94.4

%
(0.7
)
pts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net accident year catastrophe losses incurred
$
25

 
$
25

 
 
 
 
$
102

 
$
73

 


 
Effect on loss & LAE ratio
3.0

%
3.1

%
0.1

pts
 
4.3

%
3.1

%
(1.2
)
pts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net prior year development and other: (favorable) / unfavorable
$
40

 
$

 
 
 
 
$
37

 
$
(12
)
 


 
Effect on loss & LAE ratio
4.8

%

%
(4.8
)
pts
 
1.5

%
(0.5
)
%
(2.0
)
pts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rate
4

%
2

%
2

pts
 
3

%
1

%
2

pts
Renewal premium change
5

%
4

%
1

pts
 
4

%
5

%
(1
)
pts
Retention
84

%
84

%

pts
 
86

%
85

%
1

pts
New business
$
173

 
$
122

 
42

%
 
$
522

 
$
462

 
13

%

6





International - Results of Operations
Periods ended September 30
Three Months
 
 
Nine Months
 
(In millions)
2019
 
2018
 
Change
 
 
2019
 
2018
 
Change
 
Gross written premiums
$
226

 
$
230

 
(2
)
%
 
$
837

 
$
884

 
(5
)
%
Net written premiums
201

 
196

 
3

 
 
709

 
762

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earned premiums
236

 
255

 
(7
)
 
 
729

 
739

 
(1
)
 
Net investment income
17

 
14

 
 
 
 
47

 
43

 


 
Other revenues
(1
)
 
1

 
 
 
 

 

 


 
Total operating revenues
252

 
270

 
(7
)
 
 
776

 
782

 
(1
)
 
Insurance claims and policyholders' benefits
163

 
172

 
 
 
 
472

 
480

 


 
Amortization of deferred acquisition costs
56

 
57

 
 
 
 
180

 
170

 


 
Other insurance related expenses
35

 
36

 
 
 
 
94

 
102

 


 
Other expenses
7

 
3

 
 
 
 
14

 
6

 


 
Total claims, benefits and expenses
261

 
268

 
3

 
 
760

 
758

 

 
Core income (loss) before income tax
(9
)
 
2

 
 
 
 
16

 
24

 


 
Income tax (expense) benefit on core income (loss)

 
(1
)
 
 
 
 
(2
)
 
(7
)
 


 
Core income (loss)
$
(9
)
 
$
1

 
N/M

%
 
$
14

 
$
17

 
(18
)
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Performance Metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting gain (loss)
$
(18
)
 
$
(10
)
 
(80
)
%
 
$
(17
)
 
$
(13
)
 
(31
)
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss & LAE ratio
69.4

%
67.6

%
(1.8
)
pts
 
64.7

%
65.0

%
0.3

pts
Expense ratio
38.0

 
36.3

 
(1.7
)
 
 
37.5

 
36.8

 
(0.7
)
 
Dividend ratio

 

 

 
 

 

 

 
Combined ratio
107.4

%
103.9

%
(3.5
)
pts
 
102.2

%
101.8

%
(0.4
)
pts
Combined ratio excluding catastrophes and development
105.3

%
102.6

%
(2.7
)
pts
 
98.9

%
100.9

%
2.0

pts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net accident year catastrophe losses incurred
$
4

 
$
5

 
 
 
 
$
10

 
$
11

 


 
Effect on loss & LAE ratio
1.7

%
2.1

%
0.4

pts
 
1.4

%
1.5

%
0.1

pts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net prior year development and other: (favorable) / unfavorable
$
1

 
$
(2
)
 
 
 
 
$
14

 
$
(4
)
 


 
Effect on loss & LAE ratio
0.4

%
(0.8
)
%
(1.2
)
pts
 
1.9

%
(0.6
)
%
(2.5
)
pts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rate
10

%
4

%
6

pts
 
7

%
3

%
4

pts
Renewal premium change
6

%
8

%
(2
)
pts
 
5

%
6

%
(1
)
pts
Retention
71

%
72

%
(1
)
pts
 
69

%
79

%
(10
)
pts
New business
$
52

 
$
71

 
(27
)
%
 
$
207

 
$
247

 
(16
)
%

7





Life & Group - Results of Operations
Periods ended September 30
Three Months
 
Nine Months
(In millions)
2019
 
2018
 
2019
 
2018
Net earned premiums
$
130

 
$
133

 
$
390

 
$
398

Net investment income
207

 
200

 
616

 
598

Other revenues
(1
)
 
(1
)
 

 

Total operating revenues
336

 
332

 
1,006

 
996

Insurance claims and policyholders' benefits
476

 
277

 
1,093

 
907

Other insurance related expenses
29

 
31

 
87

 
91

Other expenses
1

 
2

 
5

 
5

Total claims, benefits and expenses
506

 
310

 
1,185

 
1,003

Core income (loss) before income tax
(170
)
 
22

 
(179
)
 
(7
)
Income tax (expense) benefit on core income (loss)
48

 
10

 
74

 
43

Core income (loss)
$
(122
)
 
$
32

 
$
(105
)
 
$
36



8





Corporate & Other - Results of Operations
Periods ended September 30
Three Months
 
Nine Months
(In millions)
2019
 
2018
 
2019
 
2018
Net earned premiums
$
(1
)
 
$
(1
)
 
$
(2
)
 
$
(1
)
Net investment income
6

 
5

 
20

 
16

Other revenues

 
2

 
1

 
1

Total operating revenues
5

 
6

 
19

 
16

Insurance claims and policyholders' benefits
(7
)
 
(12
)
 
(40
)
 
15

Other insurance related expenses
(1
)
 
(2
)
 
(4
)
 
(2
)
Other expenses
34

 
44

 
104

 
152

Total claims, benefits and expenses
26

 
30

 
60

 
165

Core income (loss) before income tax
(21
)
 
(24
)
 
(41
)
 
(149
)
Income tax (expense) benefit on core income (loss)
4

 
4

 
7

 
30

Core income (loss)
$
(17
)
 
$
(20
)
 
$
(34
)
 
$
(119
)


9





Investment Summary - Consolidated
 
September 30, 2019
 
June 30, 2019

December 31, 2018
(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
$
22,032

 
$
2,221

 
$
21,490

 
$
1,836

 
$
19,164

 
$
396

States, municipalities and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Tax-exempt
7,870

 
1,181

 
7,784

 
1,081

 
7,874

 
733

Taxable
2,925

 
460

 
2,919

 
426

 
2,874

 
334

Total states, municipalities and political subdivisions
10,795

 
1,641

 
10,703

 
1,507

 
10,748

 
1,067

Asset-backed:
 
 
 
 
 
 
 
 
 
 
 
RMBS
4,874

 
156

 
4,797

 
129

 
4,826

 
11

CMBS
2,180

 
114

 
2,121

 
89

 
2,196

 
(4
)
Other ABS
1,926

 
42

 
1,898

 
33

 
1,962

 
(13
)
Total asset-backed
8,980

 
312

 
8,816

 
251

 
8,984

 
(6
)
U.S. Treasury and obligations of government-sponsored enterprises
131

 
7

 
123

 
5

 
159

 
3

Foreign government
511

 
20

 
497

 
17

 
481

 
1

Redeemable preferred stock
10

 

 
10

 

 
10

 

Total fixed maturity securities
42,459

 
4,201

 
41,639

 
3,616

 
39,546

 
1,461

Equities:
 
 
 
 
 
 
 
 
 
 
 
Common stock
120

 

 
135

 

 
148

 

Non-redeemable preferred stock
721

 

 
695

 

 
632

 

Total equities
841

 

 
830

 


780



Limited partnership investments
1,758

 

 
1,785

 

 
1,982

 

Other invested assets
60

 

 
58

 

 
53

 

Mortgage loans
923

 

 
916

 

 
839

 

Short term investments
1,494

 

 
1,519

 

 
1,286

 
(1
)
Total investments
$
47,535

 
$
4,201

 
$
46,747

 
$
3,616


$
44,486


$
1,460

 
 
 
 
 
 
 
 
 
 
 
 
Net receivable/(payable) on investment activity
$
(16
)
 
 
 
$
(59
)
 
 
 
$
176

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective duration (in years)
6.0

 
 
 
6.0

 
 
 
6.0

 
 
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
 
September 30, 2019
 
June 30, 2019
 
December 31, 2018
(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
$
13,977

 
$
709

 
$
13,847

 
$
579

 
$
12,844

 
$
(180
)
States, municipalities and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Tax-exempt
647

 
39

 
650

 
35

 
661

 
25

Taxable
1,131

 
84

 
1,184

 
84

 
1,198

 
68

Total states, municipalities and political subdivisions
1,778

 
123

 
1,834

 
119

 
1,859

 
93

Asset-backed:
 
 
 
 
 
 
 
 
 
 
 
RMBS
4,767

 
150

 
4,675

 
124

 
4,671

 
8

CMBS
2,088

 
108

 
2,014

 
84

 
2,093

 
(4
)
Other ABS
1,812

 
34

 
1,788

 
27

 
1,840

 
(11
)
Total asset-backed
8,667

 
292

 
8,477

 
235

 
8,604

 
(7
)
U.S. Treasury and obligations of government-sponsored enterprises
130

 
7

 
122

 
5

 
133

 
3

Foreign government
505

 
19

 
491

 
16

 
481

 
1

Redeemable preferred stock
5

 

 
5

 

 
5

 

Total fixed maturity securities
25,062

 
1,150

 
24,776

 
954

 
23,926

 
(90
)
Equities:
 
 
 
 
 
 
 
 
 
 
 
Common stock
120

 

 
135

 

 
148

 

Non-redeemable preferred stock
179

 

 
178

 

 
164

 

Total equities
299

 

 
313

 

 
312

 

Limited partnership investments
1,758

 

 
1,785

 

 
1,982

 

Other invested assets
60

 

 
58

 

 
53

 

Mortgage loans
662

 

 
654

 

 
631

 

Short term investments
1,459

 

 
1,448

 

 
1,232

 
(1
)
Total investments
$
29,300

 
$
1,150

 
$
29,034

 
$
954


$
28,136


$
(91
)
 
 
 
 
 
 
 
 
 
 
 
 
Net receivable/(payable) on investment activity
$
(45
)
 
 
 
$
(149
)
 
 
 
$
106

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective duration (in years)
4.1

 
 
 
4.1

 
 
 
4.4

 
 
Weighted average rating
A-

 
 
 
A-

 
 
 
 A-

 
 

11





Investment Summary - Life & Group
 
September 30, 2019
 
June 30, 2019
 
December 31, 2018
(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
$
8,055

 
$
1,512

 
$
7,643

 
$
1,257

 
$
6,320

 
$
576

States, municipalities and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Tax-exempt
7,223

 
1,142

 
7,134

 
1,046

 
7,213

 
708

Taxable
1,794

 
376

 
1,735

 
342

 
1,676

 
266

Total states, municipalities and political subdivisions
9,017

 
1,518

 
8,869

 
1,388

 
8,889

 
974

Asset-backed:
 
 
 
 
 
 
 
 
 
 
 
RMBS
107

 
6

 
122

 
5

 
155

 
3

CMBS
92

 
6

 
107

 
5

 
103

 

Other ABS
114

 
8

 
110

 
6

 
122

 
(2
)
Total asset-backed
313

 
20

 
339

 
16

 
380

 
1

U.S. Treasury and obligations of government-sponsored enterprises
1

 

 
1

 

 
26

 

Foreign government
6

 
1

 
6

 
1

 

 

Redeemable preferred stock
5

 

 
5

 

 
5

 

Total fixed maturity securities
17,397

 
3,051

 
16,863

 
2,662

 
15,620

 
1,551

Equities:
 
 
 
 
 
 
 
 
 
 
 
Common stock

 

 

 

 

 

Non-redeemable preferred stock
542

 

 
517

 

 
468

 

Total equities
542

 


517

 

 
468



Limited partnership investments

 

 

 

 

 

Other invested assets

 

 

 

 

 

Mortgage loans
261

 

 
262

 

 
208

 

Short term investments
35

 

 
71

 

 
54

 

Total investments
$
18,235

 
$
3,051


$
17,713

 
$
2,662

 
$
16,350


$
1,551

 
 
 
 
 
 
 
 
 
 
 
 
Net receivable/(payable) on investment activity
$
29

 
 
 
$
90

 
 
 
$
70

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective duration (in years)
9.0

 
 
 
8.9

 
 
 
8.4

 
 
Weighted average rating
A

 
 
 
A

 
 
 
 A

 
 

12





Investments - Fixed Maturity Securities by Credit Rating  
September 30, 2019
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
$

 
$

 
$
45

 
$
2

 
$
536

 
$
50

 
$
4,571

 
$
618

 
$
15,056

 
$
1,521

 
$
1,824

 
$
30

 
$
22,032

 
$
2,221

States, municipalities and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax-exempt

 

 
1,862

 
291

 
3,221

 
486

 
2,412

 
308

 
359

 
95

 
16

 
1

 
7,870

 
1,181

Taxable

 

 
402

 
37

 
1,800

 
262

 
701

 
159

 
22

 
2

 

 

 
2,925

 
460

Total states, municipalities and political subdivisions

 

 
2,264

 
328

 
5,021

 
748

 
3,113

 
467

 
381

 
97

 
16

 
1

 
10,795

 
1,641

Asset-backed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RMBS
4,263

 
107

 
197

 
4

 
20

 
1

 
56

 

 
7

 

 
331

 
44

 
4,874

 
156

CMBS
38

 

 
329

 
21

 
747

 
52

 
242

 
11

 
527

 
23

 
297

 
7

 
2,180

 
114

Other ABS

 

 
75

 

 
135

 

 
985

 
12

 
718

 
27

 
13

 
3

 
1,926

 
42

Total asset-backed
4,301

 
107

 
601

 
25

 
902

 
53

 
1,283

 
23

 
1,252

 
50

 
641

 
54

 
8,980

 
312

U.S. Treasury and obligations of government-sponsored enterprises
131

 
7

 

 

 

 

 

 

 

 

 

 

 
131

 
7

Foreign government

 

 
147

 
5

 
272

 
9

 
73

 
4

 
19

 
2

 

 

 
511

 
20

Redeemable preferred stock

 

 

 

 

 

 

 

 
10

 

 

 

 
10

 

Total fixed maturity securities
$
4,432

 
$
114

 
$
3,057

 
$
360

 
$
6,731

 
$
860

 
$
9,040

 
$
1,112

 
$
16,718

 
$
1,670

 
$
2,481

 
$
85

 
$
42,459

 
$
4,201

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of total fixed maturity securities
10
%
 
 
 
7
%
 
 
 
16
%
 
 
 
21
%
 
 
 
40
%
 
 
 
6
%
 
 
 
100
%
 
 


13





Components of Net Investment Income
 
Consolidated
 
Periods ended September 30
Three Months
 
Nine Months
 
(In millions)
2019
 
2018
 
2019
 
2018
 
    Taxable fixed income securities
$
383

 
$
366

 
$
1,151

 
$
1,070

 
    Tax-exempt fixed income securities
79

 
93

 
241

 
298

 
Total fixed income securities
462

 
459

 
1,392

 
1,368

 
Limited partnership and common stock investments
18

 
23

 
157

 
96

 
Other, net of investment expense
7

 
5

 
24

 
19

 
Pretax net investment income
$
487

 
$
487

 
$
1,573

 
$
1,483

 
Fixed income securities, after tax
$
378

 
$
378

 
$
1,140

 
$
1,130

 
Net investment income, after tax
399

 
400

 
1,284

 
1,221

 
 
 
 
 
 
 
 
 
 
Effective income yield for fixed income securities, pretax
4.8

%
4.7

%
4.8

%
4.7

%
Effective income yield for fixed income securities, after tax
3.9

 
3.9

 
3.9

 
3.9

 
Limited partnership and common stock return
0.9

 
0.9

 
7.7

 
4.0

 
 
Property & Casualty and Corporate & Other
 
Periods ended September 30
Three Months
 
Nine Months
 
(In millions)
2019
 
2018
 
2019
 
2018
 
    Taxable fixed income securities
$
248

 
$
248

 
$
755

 
$
721

 
    Tax-exempt fixed income securities
6

 
10

 
17

 
44

 
Total fixed income securities
254

 
258

 
772

 
765

 
Limited partnership and common stock investments
18

 
23

 
157

 
96

 
Other, net of investment expense
8

 
6

 
28

 
24

 
Pretax net investment income
$
280

 
$
287

 
$
957

 
$
885

 
Fixed income securities, after tax
$
202

 
$
206

 
$
613

 
$
612

 
Net investment income, after tax
223

 
229

 
760

 
707

 
 
 
 
 
 
 
 
 
 
Effective income yield for fixed income securities, pretax
4.2

%
4.2

%
4.3

%
4.2

%
Effective income yield for fixed income securities, after tax
3.4

 
3.4

 
3.4

 
3.4

 
 
Life & Group
 
Periods ended September 30
Three Months
 
Nine Months
 
(In millions)
2019
 
2018
 
2019
 
2018
 
    Taxable fixed income securities
$
135

 
$
118

 
$
396

 
$
349

 
    Tax-exempt fixed income securities
73

 
83

 
224

 
254

 
Total fixed income securities
208

 
201

 
620

 
603

 
Limited partnership and common stock investments

 

 

 

 
Other, net of investment expense
(1
)
 
(1
)
 
(4
)
 
(5
)
 
Pretax net investment income
$
207

 
$
200

 
$
616

 
$
598

 
Fixed income securities, after tax
$
176

 
$
172

 
$
527

 
$
518

 
Net investment income, after tax
176

 
171

 
524

 
514

 
 
 
 
 
 
 
 
 
 
Effective income yield for fixed income securities, pretax
5.6

%
5.6

%
5.6

%
5.6

%
Effective income yield for fixed income securities, after tax
4.8

 
4.8

 
4.8

 
4.8

 

14





Claim & Claim Adjustment Expense Reserve Rollforward
Three months ended September 30, 2019
(In millions)

Specialty
 

Commercial
 
International
 
P&C Operations
 
Life & Group
 
Corporate & Other
 
Total Operations
Claim & claim adjustment expense reserves, beginning of period
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross
$
5,396

 
$
8,580

 
$
1,800

 
$
15,776

 
$
3,710

 
$
2,243

 
$
21,729

Ceded
676

 
724

 
234

 
1,634

 
171

 
2,061

 
3,866

Net
4,720

 
7,856

 
1,566

 
14,142

 
3,539

 
182

 
17,863

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net incurred claim & claim adjustment expenses
411

 
565

 
163

 
1,139

 
230

 

 
1,369

Net claim & claim adjustment expense payments
(426
)
 
(513
)
 
(131
)
 
(1,070
)
 
(240
)
 
(2
)
 
(1,312
)
Foreign currency translation adjustment and other

 
(3
)
 
(36
)
 
(39
)
 
11

 
2

 
(26
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claim & claim adjustment expense reserves, end of period
 
 
 
 
 
 
 
 
 
 
 
 
 
Net
4,705

 
7,905

 
1,562

 
14,172

 
3,540

 
182

 
17,894

Ceded
580

 
705

 
240

 
1,525

 
167

 
2,010

 
3,702

Gross
$
5,285

 
$
8,610

 
$
1,802

 
$
15,697

 
$
3,707

 
$
2,192

 
$
21,596

Nine months ended September 30, 2019
(In millions)

Specialty
 

Commercial
 
International
 
P&C Operations
 
Life & Group
 
Corporate & Other
 
Total Operations
Claim & claim adjustment expense reserves, beginning of period
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross
$
5,465

 
$
8,743

 
$
1,750

 
$
15,958

 
$
3,601

 
$
2,425

 
$
21,984

Ceded
634

 
745

 
226

 
1,605

 
181

 
2,233

 
4,019

Net
4,831

 
7,998

 
1,524

 
14,353

 
3,420

 
192

 
17,965

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net incurred claim & claim adjustment expenses
1,198

 
1,581

 
472

 
3,251

 
792

 
3

 
4,046

Net claim & claim adjustment expense payments
(1,325
)
 
(1,671
)
 
(409
)
 
(3,405
)
 
(726
)
 
(15
)
 
(4,146
)
Foreign currency translation adjustment and other
1

 
(3
)
 
(25
)
 
(27
)
 
54

 
2

 
29

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Claim & claim adjustment expense reserves, end of period
 
 
 
 
 
 
 
 
 
 
 
 
 
Net
4,705

 
7,905

 
1,562

 
14,172

 
3,540

 
182

 
17,894

Ceded
580

 
705

 
240

 
1,525

 
167

 
2,010

 
3,702

Gross
$
5,285

 
$
8,610

 
$
1,802

 
$
15,697

 
$
3,707

 
$
2,192

 
$
21,596



15





Life & Group Policyholder Reserves
September 30, 2019
 
 
 
 
 
(In millions)
Claim and claim adjustment expenses
 
Future policy benefits
 
Total
Long term care
$
2,840

 
$
9,415

 
$
12,255

Structured settlement annuities
519

 

 
519

Other
13

 

 
13

Total
3,372

 
9,415

 
12,787

Shadow adjustments
168
 
2,664

 
2,832

Ceded reserves
167
 
226

 
393

Total gross reserves
$
3,707

 
$
12,305

 
$
16,012

December 31, 2018
 
 
 
 
 
(In millions)
Claim and claim adjustment expenses
 
Future policy benefits
 
Total
Long term care
$
2,761

 
$
9,113

 
$
11,874

Structured settlement annuities
530

 

 
530

Other
14

 

 
14

Total
3,305

 
9,113

 
12,418

Shadow adjustments
115

 
1,250

 
1,365

Ceded reserves
181

 
234

 
415

Total gross reserves
$
3,601

 
$
10,597

 
$
14,198


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, 2018 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. For certain products within Small Business, where quantifiable, rate includes the influence of new business as well. 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 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 investment gains or losses because net 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.
Gross written premiums ex. 3rd party captives excludes business which is mostly ceded to third party captives, including business related to large warranty programs.
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.
Certain immaterial differences are due to rounding.
N/M = Not Meaningful


18


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Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Oct. 28, 2019
Entity Registrant Name CNA FINANCIAL CORPORATION
Entity Incorporation, State or Country Code DE
Entity File Number 1-5823
Entity Tax Identification Number 36-6169860
Entity Address, Address Line One 151 N. Franklin
Entity Address, City or Town Chicago
Entity Address, State or Province IL
Entity Address, Postal Zip Code 60606
City Area Code 312
Local Phone Number 822-5000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000021175
Amendment Flag false
New York Stock Exchange  
Entity Information [Line Items]  
Title of 12(b) Security Common Stock, Par value $2.50
Trading Symbol "CNA"
Security Exchange Name NYSE
Chicago Stock Exchange  
Entity Information [Line Items]  
Title of 12(b) Security Common Stock, Par value $2.50
Trading Symbol "CNA"
Security Exchange Name CHX

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