CNA Financial Corporation

Supplemental Financial Information

December 31, 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 and Quarterly Reports on Form 10-Q.

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 December 31	Three Months								Twelve Months
(In millions)	2019			2018			Change		2019			2018			Change
Revenues:
Net earned premiums	$	1,911		$	1,859		3	%	$	7,428		$	7,312		2		%
Net investment income	545			334			63		2,118			1,817			17
Net investment gains (losses):
Other-than-temporary impairment (OTTI) losses	(10		)	(12		)			(44		)	(21		)
Other net investment gains (losses)	19			(65		)			73			(31		)
Net investment gains (losses)	9			(77		)			29			(52		)
Non-insurance warranty revenue	303			263					1,161			1,007
Other revenues	9			24					31			50
Total revenues	2,777			2,403			16		10,767			10,134			6
Claims, Benefits and Expenses:
Insurance claims and policyholders' benefits	1,483			1,594					5,806			5,572
Amortization of deferred acquisition costs	358			343					1,383			1,335
Non-insurance warranty expense	281			247					1,082			923
Other operating expenses	289			299					1,142			1,202
Interest	31			34					131			138
Total claims, benefits and expenses	2,442			2,517			3		9,544			9,170			(4	)
Income (loss) before income tax	335			(114		)			1,223			964
Income tax (expense) benefit	(62		)	30					(223		)	(151		)
Net income (loss)	$	273		$	(84	)	N/M	%	$	1,000		$	813		23		%

1

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

Periods ended December 31	Three Months							Twelve Months
(In millions, except per share data)	2019			2018				2019			2018
Components of Income (Loss)
Core income (loss)	$	265		$	(23	)		$	979		$	845
Net investment gains (losses)	8			(61		)		21			(38		)
Net deferred tax asset remeasurement	—			—				—			6
Net income (loss)	$	273		$	(84	)		$	1,000		$	813
Diluted Earnings (Loss) Per Common Share
Core income (loss)	$	0.97		$	(0.08	)		$	3.59		$	3.10
Net investment gains (losses)	0.03			(0.23		)		0.08			(0.14		)
Net deferred tax asset remeasurement	—			—				—			0.02
Diluted earnings (loss) per share	$	1.00		$	(0.31	)		$	3.67		$	2.98
Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic	271.5			271.6				271.6			271.5
Diluted	272.6			272.6				272.5			272.5
Return on Equity
Net income (loss) (1)	9.0		%	(3.0		)	%	8.5		%	6.9			%
Core income (loss) (2)	8.8			(0.7		)		8.1			7.0

(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)	December 31, 2019		December 31, 2018
Total investments	$	47,744	$	44,486
Reinsurance receivables, net of allowance for uncollectible receivables	4,179		4,426
Total assets	60,612		57,152
Insurance reserves	38,614		36,764
Debt	2,679		2,680
Total liabilities	48,397		45,935
Accumulated other comprehensive income (loss) (1)	51		(878		)
Total stockholders' equity	12,215		11,217
Book value per common share	$	45.00	$	41.32
Book value per common share excluding AOCI	$	44.81	$	44.55
Outstanding shares of common stock (in millions of shares)	271.4		271.5
Statutory capital and surplus - Combined Continental Casualty Companies (2)	$	10,787	$	10,411

Three months ended December 31	2019			2018
Net cash flows provided (used) by operating activities	$	160		$	359
Net cash flows provided (used) by investing activities	(165		)	(257		)
Net cash flows provided (used) by financing activities	(101		)	(96		)
Net cash flows provided (used) by operating, investing and financing activities	$	(106	)	$	6

Twelve months ended December 31	2019			2018
Net cash flows provided (used) by operating activities	$	1,140		$	1,227
Net cash flows provided (used) by investing activities	(225		)	(177		)
Net cash flows provided (used) by financing activities	(988		)	(1,085		)
Net cash flows provided (used) by operating, investing and financing activities	$	(73	)	$	(35	)

(1) As of December 31, 2019 and 2018, the net unrealized gains on investments included in AOCI were net of after-tax Shadow Adjustments of $2,198 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 December 31, 2019 is preliminary.

3

Property & Casualty - Results of Operations

Periods ended December 31	Three Months											Twelve Months
(In millions)	2019				2018				Change			2019				2018				Change
Gross written premiums	$	2,851			$	2,735			4		%	$	11,704			$	11,404			3		%
Gross written premiums ex. 3rd party captives	1,892				1,755				8			7,735				7,252				7
Net written premiums	1,746				1,659				5			7,134				6,822				5
Net earned premiums	1,780				1,727				3			6,909				6,783				2
Net investment income	336				127							1,273				996
Non-insurance warranty revenue	303				263							1,161				1,007
Other revenues	9				6							30				31
Total operating revenues	2,428				2,123				14			9,373				8,817				6
Insurance claims and policyholders' benefits	1,102				1,247							4,372				4,303
Amortization of deferred acquisition costs	358				343							1,383				1,335
Non-insurance warranty expense	281				247							1,082				923
Other insurance related expenses	244				229							927				919
Other expenses	10				32							88				103
Total claims, benefits and expenses	1,995				2,098				5			7,852				7,583				(4	)
Core income (loss) before income tax	433				25							1,521				1,234
Income tax (expense) benefit on core income (loss)	(96		)		(9		)					(331		)		(267		)
Core income (loss)	$	337			$	16			N/M		%	$	1,190			$	967			23		%
Other Performance Metrics
Underwriting gain (loss)	$	76			$	(92	)		N/M		%	$	227			$	226			—		%
Loss & LAE ratio	61.6			%	71.8			%	10.2		pts	62.9			%	63.1			%	0.2		pts
Expense ratio	33.7				33.2				(0.5	)		33.5				33.2				(0.3	)
Dividend ratio	0.3				0.4				0.1			0.3				0.4				0.1
Combined ratio	95.6			%	105.4			%	9.8		pts	96.7			%	96.7			%	—		pts
Combined ratio excluding catastrophes and development	94.9			%	98.0			%	3.1		pts	94.8			%	95.4			%	0.6		pts
Net accident year catastrophe losses incurred	$	51			$	146						$	179			$	252
Effect on loss & LAE ratio	2.9			%	8.6			%	5.7		pts	2.6			%	3.7			%	1.1		pts
Net prior year development and other: (favorable) / unfavorable	$	(37	)		$	(21	)					$	(44	)		$	(163	)
Effect on loss & LAE ratio	(2.2		)	%	(1.2		)	%	1.0		pts	(0.7		)	%	(2.4		)	%	(1.7	)	pts
Rate	7			%	3			%	4		pts	5			%	2			%	3		pts
Renewal premium change	8			%	4			%	4		pts	6			%	5			%	1		pts
Retention	83			%	82			%	1		pts	84			%	84			%	—		pts
New business	$	320			$	252			27		%	$	1,323			$	1,226			8		%

4

Specialty - Results of Operations

Periods ended December 31	Three Months											Twelve Months
(In millions)	2019				2018				Change			2019				2018				Change
Gross written premiums	$	1,709			$	1,682			2		%	$	6,900			$	6,904			—		%
Gross written premiums ex. 3rd party captives	752				705				7			3,015				2,834				6
Net written premiums	705				682				3			2,848				2,744				4
Net earned premiums	712				693				3			2,773				2,732				2
Net investment income	146				63							556				439
Non-insurance warranty revenue	303				263							1,161				1,007
Other revenues	—				1							1				2
Total operating revenues	1,161				1,020				14			4,491				4,180				7
Insurance claims and policyholders' benefits	398				404							1,600				1,531
Amortization of deferred acquisition costs	156				152							610				599
Non-insurance warranty expense	281				247							1,082				923
Other insurance related expenses	75				77							292				279
Other expenses	11				12							48				46
Total claims, benefits and expenses	921				892				(3	)		3,632				3,378				(8	)
Core income (loss) before income tax	240				128							859				802
Income tax (expense) benefit on core income (loss)	(52		)		(30		)					(188		)		(173		)
Core income (loss)	$	188			$	98			92		%	$	671			$	629			7		%
Other Performance Metrics
Underwriting gain (loss)	$	83			$	60			38		%	$	271			$	323			(16	)	%
Loss & LAE ratio	55.6			%	58.0			%	2.4		pts	57.5			%	55.9			%	(1.6	)	pts
Expense ratio	32.4				33.0				0.6			32.5				32.1				(0.4	)
Dividend ratio	0.2				0.2				—			0.2				0.2				—
Combined ratio	88.2			%	91.2			%	3.0		pts	90.2			%	88.2			%	(2.0	)	pts
Combined ratio excluding catastrophes and development	93.3			%	94.3			%	1.0		pts	93.0			%	92.7			%	(0.3	)	pts
Net accident year catastrophe losses incurred	$	(1	)		$	4						$	15			$	26
Effect on loss & LAE ratio	(0.2		)	%	0.6			%	0.8		pts	0.5			%	1.0			%	0.5		pts
Net prior year development and other: (favorable) / unfavorable	$	(34	)		$	(26	)					$	(92	)		$	(152	)
Effect on loss & LAE ratio	(4.9		)	%	(3.7		)	%	1.2		pts	(3.3		)	%	(5.5		)	%	(2.2	)	pts
Rate	8			%	3			%	5		pts	5			%	2			%	3		pts
Renewal premium change	8			%	5			%	3		pts	6			%	5			%	1		pts
Retention	84			%	85			%	(1	)	pts	87			%	85			%	2		pts
New business	$	93			$	87			7		%	$	367			$	353			4		%

5

Commercial - Results of Operations

Periods ended December 31	Three Months											Twelve Months
(In millions)	2019				2018				Change			2019				2018				Change
Gross written premiums	$	868			$	787			10		%	$	3,693			$	3,350			10		%
Gross written premiums ex. 3rd party captives	867				784				11			3,609				3,267				10
Net written premiums	779				721				8			3,315				3,060				8
Net earned premiums	823				772				7			3,162				3,050				4
Net investment income	174				50							654				500
Other revenues	9				4							29				28
Total operating revenues	1,006				826				22			3,845				3,578				7
Insurance claims and policyholders' benefits	552				624							2,148				2,073
Amortization of deferred acquisition costs	146				130							537				505
Other insurance related expenses	133				119							505				505
Other expenses	5				12							32				43
Total claims, benefits and expenses	836				885				6			3,222				3,126				(3	)
Core income (loss) before income tax	170				(59		)					623				452
Income tax (expense) benefit on core income (loss)	(37		)		13							(134		)		(95		)
Core income (loss)	$	133			$	(46	)		N/M		%	$	489			$	357			37		%
Other Performance Metrics
Underwriting gain (loss)	$	(8	)		$	(101	)		92		%	$	(28	)		$	(33	)		15		%
Loss & LAE ratio	66.6			%	80.3			%	13.7		pts	67.3			%	67.3			%	—		pts
Expense ratio	33.6				32.3				(1.3	)		32.9				33.1				0.2
Dividend ratio	0.4				0.7				0.3			0.6				0.7				0.1
Combined ratio	100.6			%	113.3			%	12.7		pts	100.8			%	101.1			%	0.3		pts
Combined ratio excluding catastrophes and development	95.4			%	96.9			%	1.5		pts	95.2			%	95.0			%	(0.2	)	pts
Net accident year catastrophe losses incurred	$	52			$	120						$	154			$	193
Effect on loss & LAE ratio	6.5			%	15.7			%	9.2		pts	4.9			%	6.4			%	1.5		pts
Net prior year development and other: (favorable) / unfavorable	$	(9	)		$	5						$	28			$	(7	)
Effect on loss & LAE ratio	(1.3		)	%	0.7			%	2.0		pts	0.7			%	(0.3		)	%	(1.0	)	pts
Rate	5			%	2			%	3		pts	3			%	1			%	2		pts
Renewal premium change	6			%	3			%	3		pts	5			%	5			%	—		pts
Retention	85			%	84			%	1		pts	86			%	85			%	1		pts
New business	$	161			$	105			53		%	$	683			$	566			21		%

6

International - Results of Operations

Periods ended December 31	Three Months											Twelve Months
(In millions)	2019				2018				Change			2019				2018				Change
Gross written premiums	$	274			$	266			3		%	$	1,111			$	1,150			(3	)	%
Net written premiums	262				256				2			971				1,018				(5	)
Net earned premiums	245				262				(6	)		974				1,001				(3	)
Net investment income	16				14							63				57
Other revenues	—				1							—				1
Total operating revenues	261				277				(6	)		1,037				1,059				(2	)
Insurance claims and policyholders' benefits	152				219							624				699
Amortization of deferred acquisition costs	56				61							236				231
Other insurance related expenses	36				33							130				135
Other expenses	(6		)		8							8				14
Total claims, benefits and expenses	238				321				26			998				1,079				8
Core income (loss) before income tax	23				(44		)					39				(20		)
Income tax (expense) benefit on core income (loss)	(7		)		8							(9		)		1
Core income (loss)	$	16			$	(36	)		N/M		%	$	30			$	(19	)		N/M		%
Other Performance Metrics
Underwriting gain (loss)	$	1			$	(51	)		102		%	$	(16	)		$	(64	)		75		%
Loss & LAE ratio	62.3			%	83.3			%	21.0		pts	64.1			%	69.8			%	5.7		pts
Expense ratio	38.0				36.2				(1.8	)		37.7				36.7				(1.0	)
Dividend ratio	—				—				—			—				—				—
Combined ratio	100.3			%	119.5			%	19.2		pts	101.8			%	106.5			%	4.7		pts
Combined ratio excluding catastrophes and development	97.7			%	111.1			%	13.4		pts	98.6			%	103.6			%	5.0		pts
Net accident year catastrophe losses incurred	$	—			$	22						$	10			$	33
Effect on loss & LAE ratio	—			%	8.2			%	8.2		pts	1.1			%	3.3			%	2.2		pts
Net prior year development and other: (favorable) / unfavorable	$	6			$	—						$	20			$	(4	)
Effect on loss & LAE ratio	2.6			%	0.2			%	(2.4	)	pts	2.1			%	(0.4		)	%	(2.5	)	pts
Rate	13			%	5			%	8		pts	8			%	4			%	4		pts
Renewal premium change	14			%	6			%	8		pts	7			%	6			%	1		pts
Retention	72			%	70			%	2		pts	71			%	77			%	(6	)	pts
New business	$	66			$	60			10		%	$	273			$	307			(11	)	%

7

Life & Group - Results of Operations

Periods ended December 31	Three Months						Twelve Months
(In millions)	2019			2018			2019			2018
Net earned premiums	$	130		$	132		$	520		$	530
Net investment income	204			203			820			801
Other revenues	—			2			—			2
Total operating revenues	334			337			1,340			1,333
Insurance claims and policyholders' benefits	323			311			1,416			1,218
Other insurance related expenses	28			31			115			122
Other expenses	3			2			8			7
Total claims, benefits and expenses	354			344			1,539			1,347
Core income (loss) before income tax	(20		)	(7		)	(199		)	(14		)
Income tax (expense) benefit on core income (loss)	16			14			90			57
Core income (loss)	$	(4	)	$	7		$	(109	)	$	43

8

Corporate & Other - Results of Operations

Periods ended December 31	Three Months						Twelve Months
(In millions)	2019			2018			2019			2018
Net earned premiums	$	1		—			$	(1	)	$	(1	)
Net investment income	5			4			25			20
Other revenues	—			16			1			17
Total operating revenues	6			20			25			36
Insurance claims and policyholders' benefits	58			36			18			51
Other insurance related expenses	—			—			(4		)	(2		)
Other expenses	35			39			139			191
Total claims, benefits and expenses	93			75			153			240
Core income (loss) before income tax	(87		)	(55		)	(128		)	(204		)
Income tax (expense) benefit on core income (loss)	19			9			26			39
Core income (loss)	$	(68	)	$	(46	)	$	(102	)	$	(165	)

9

Investment Summary - Consolidated

	December 31, 2019					September 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	$	22,069	$	2,260		$	22,032		$	2,221	$	19,164	$	396
States, municipalities and political subdivisions:
Tax-exempt	7,804		1,155			7,870			1,181		7,874		733
Taxable	2,848		404			2,925			460		2,874		334
Total states, municipalities and political subdivisions	10,652		1,559			10,795			1,641		10,748		1,067
Asset-backed:
RMBS	4,519		132			4,874			156		4,826		11
CMBS	2,346		81			2,180			114		2,196		(4		)
Other ABS	1,962		37			1,926			42		1,962		(13		)
Total asset-backed	8,827		250			8,980			312		8,984		(6		)
U.S. Treasury and obligations of government-sponsored enterprises	145		(1		)	131			7		159		3
Foreign government	504		13			511			20		481		1
Redeemable preferred stock	10		—			10			—		10		—
Total fixed maturity securities	42,207		4,081			42,459			4,201		39,546		1,461
Equities:
Common stock	142		—			120			—		148		—
Non-redeemable preferred stock	723		—			721			—		632		—
Total equities	865		—			841			—		780		—
Limited partnership investments	1,752		—			1,758			—		1,982		—
Other invested assets	65		—			60			—		53		—
Mortgage loans	994		—			923			—		839		—
Short term investments	1,861		—			1,494			—		1,286		(1		)
Total investments	$	47,744	$	4,081		$	47,535		$	4,201	$	44,486	$	1,460
Net receivable/(payable) on investment activity	$	37				$	(16	)			$	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

	December 31, 2019					September 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	$	13,925	$	738		$	13,977		$	709	$	12,844	$	(180	)
States, municipalities and political subdivisions:
Tax-exempt	646		37			647			39		661		25
Taxable	1,077		71			1,131			84		1,198		68
Total states, municipalities and political subdivisions	1,723		108			1,778			123		1,859		93
Asset-backed:
RMBS	4,441		128			4,767			150		4,671		8
CMBS	2,264		77			2,088			108		2,093		(4		)
Other ABS	1,842		29			1,812			34		1,840		(11		)
Total asset-backed	8,547		234			8,667			292		8,604		(7		)
U.S. Treasury and obligations of government-sponsored enterprises	143		(1		)	130			7		133		3
Foreign government	498		12			505			19		481		1
Redeemable preferred stock	5		—			5			—		5		—
Total fixed maturity securities	24,841		1,091			25,062			1,150		23,926		(90		)
Equities:
Common stock	142		—			120			—		148		—
Non-redeemable preferred stock	181		—			179			—		164		—
Total equities	323		—			299			—		312		—
Limited partnership investments	1,752		—			1,758			—		1,982		—
Other invested assets	65		—			60			—		53		—
Mortgage loans	715		—			662			—		631		—
Short term investments	1,774		—			1,459			—		1,232		(1		)
Total investments	$	29,470	$	1,091		$	29,300		$	1,150	$	28,136	$	(91	)
Net receivable/(payable) on investment activity	$	17				$	(45	)			$	106
Effective duration (in years)	4.1					4.1					4.4
Weighted average rating	A-					A-					A-

11

Investment Summary - Life & Group

	December 31, 2019				September 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	$	8,144	$	1,522	$	8,055	$	1,512	$	6,320	$	576
States, municipalities and political subdivisions:
Tax-exempt	7,158		1,118		7,223		1,142		7,213		708
Taxable	1,771		333		1,794		376		1,676		266
Total states, municipalities and political subdivisions	8,929		1,451		9,017		1,518		8,889		974
Asset-backed:
RMBS	78		4		107		6		155		3
CMBS	82		4		92		6		103		—
Other ABS	120		8		114		8		122		(2		)
Total asset-backed	280		16		313		20		380		1
U.S. Treasury and obligations of government-sponsored enterprises	2		—		1		—		26		—
Foreign government	6		1		6		1		—		—
Redeemable preferred stock	5		—		5		—		5		—
Total fixed maturity securities	17,366		2,990		17,397		3,051		15,620		1,551
Equities:
Common stock	—		—		—		—		—		—
Non-redeemable preferred stock	542		—		542		—		468		—
Total equities	542		—		542		—		468		—
Limited partnership investments	—		—		—		—		—		—
Other invested assets	—		—		—		—		—		—
Mortgage loans	279		—		261		—		208		—
Short term investments	87		—		35		—		54		—
Total investments	$	18,274	$	2,990	$	18,235	$	3,051	$	16,350	$	1,551
Net receivable/(payable) on investment activity	$	20			$	29			$	70
Effective duration (in years)	8.9				9.0				8.4
Weighted average rating	A				A				A

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Investments - Fixed Maturity Securities by Credit Rating

December 31, 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	$	—		$	—		$	47		$	1	$	541		$	43	$	4,708		$	601	$	15,083		$	1,554	$	1,690		$	61	$	22,069		$	2,260
States, municipalities and political subdivisions:
Tax-exempt	—			—			1,920			291		3,291			486		2,217			284		360			93		16			1		7,804			1,155
Taxable	—			—			515			35		1,630			226		682			142		21			1		—			—		2,848			404
Total states, municipalities and political subdivisions	—			—			2,435			326		4,921			712		2,899			426		381			94		16			1		10,652			1,559
Asset-backed:
RMBS	3,954			97			218			1		18			1		52			—		11			1		266			32		4,519			132
CMBS	37			—			327			17		810			38		290			7		616			14		266			5		2,346			81
Other ABS	—			(1		)	80			1		114			1		1,041			14		712			20		15			2		1,962			37
Total asset-backed	3,991			96			625			19		942			40		1,383			21		1,339			35		547			39		8,827			250
U.S. Treasury and obligations of government-sponsored enterprises	145			(1		)	—			—		—			—		—			—		—			—		—			—		145			(1		)
Foreign government	—			—			147			3		259			6		72			3		26			1		—			—		504			13
Redeemable preferred stock	—			—			—			—		—			—		—			—		10			—		—			—		10			—
Total fixed maturity securities	$	4,136		$	95		$	3,254		$	349	$	6,663		$	801	$	9,062		$	1,051	$	16,839		$	1,684	$	2,253		$	101	$	42,207		$	4,081
Percentage of total fixed maturity securities	10		%				8		%			16		%			21		%			40		%			5		%			100		%

13

Components of Net Investment Income

	Consolidated
Periods ended December 31	Three Months							Twelve Months
(In millions)	2019			2018				2019			2018
Taxable fixed income securities	$	387		$	379			$	1,538		$	1,449
Tax-exempt fixed income securities	77			86				318			384
Total fixed income securities	464			465				1,856			1,833
Limited partnership and common stock investments	69			(138		)		226			(42		)
Other, net of investment expense	12			7				36			26
Pretax net investment income	$	545		$	334			$	2,118		$	1,817
Fixed income securities, after tax	$	380		$	382			$	1,520		$	1,512
Net investment income, after tax	443			279				1,727			1,500
Effective income yield for fixed income securities, pretax	4.7		%	4.8			%	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	3.7			(5.7		)		11.7			(1.9		)

	Property & Casualty and Corporate & Other
Periods ended December 31	Three Months							Twelve Months
(In millions)	2019			2018				2019			2018
Taxable fixed income securities	$	255		$	256			$	1,010		$	977
Tax-exempt fixed income securities	5			6				22			50
Total fixed income securities	260			262				1,032			1,027
Limited partnership and common stock investments	69			(138		)		226			(42		)
Other, net of investment expense	12			7				40			31
Pretax net investment income	$	341		$	131			$	1,298		$	1,016
Fixed income securities, after tax	$	206		$	209			$	819		$	821
Net investment income, after tax	270			105				1,030			812
Effective income yield for fixed income securities, pretax	4.3		%	4.3			%	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 December 31	Three Months						Twelve Months
(In millions)	2019			2018			2019				2018
Taxable fixed income securities	$	132		$	123		$	528			$	472
Tax-exempt fixed income securities	72			80			296				334
Total fixed income securities	204			203			824				806
Limited partnership and common stock investments	—			—			—				—
Other, net of investment expense	—			—			(4		)		(5		)
Pretax net investment income	$	204		$	203		$	820			$	801
Fixed income securities, after tax	$	174		$	173		$	701			$	691
Net investment income, after tax	173			174			697				688
Effective income yield for fixed income securities, pretax	5.5		%	5.6		%	5.6			%	5.6			%
Effective income yield for fixed income securities, after tax	4.7			4.8			4.7				4.8

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Claim & Claim Adjustment Expense Reserve Rollforward

Three months ended December 31, 2019 (In millions)	Specialty			Commercial			International			P&C Operations			Life & Group			Corporate & Other			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	5,285		$	8,610		$	1,802		$	15,697		$	3,707		$	2,192		$	21,596
Ceded	580			705			240			1,525			167			2,010			3,702
Net	4,705			7,905			1,562			14,172			3,540			182			17,894
Net incurred claim & claim adjustment expenses	397			548			153			1,098			268			1			1,367
Net claim & claim adjustment expense payments	(425		)	(605		)	(143		)	(1,173		)	(249		)	(8		)	(1,430		)
Foreign currency translation adjustment and other	(1		)	1			56			56			(2		)	—			54
Claim & claim adjustment expense reserves, end of period
Net	4,676			7,849			1,628			14,153			3,557			175			17,885
Ceded	562			807			248			1,617			159			2,059			3,835
Gross	$	5,238		$	8,656		$	1,876		$	15,770		$	3,716		$	2,234		$	21,720

Twelve months ended December 31, 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	1,595			2,129			625			4,349			1,060			4			5,413
Net claim & claim adjustment expense payments	(1,750		)	(2,276		)	(552		)	(4,578		)	(975		)	(23		)	(5,576		)
Foreign currency translation adjustment and other	—			(2		)	31			29			52			2			83
Claim & claim adjustment expense reserves, end of period
Net	4,676			7,849			1,628			14,153			3,557			175			17,885
Ceded	562			807			248			1,617			159			2,059			3,835
Gross	$	5,238		$	8,656		$	1,876		$	15,770		$	3,716		$	2,234		$	21,720

15

Life & Group Policyholder Reserves

December 31, 2019
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,863	$	9,470	$	12,333
Structured settlement annuities	515		—		515
Other	12		—		12
Total	3,390		9,470		12,860
Shadow adjustments	167		2,615		2,782
Ceded reserves	159		226		385
Total gross reserves	$	3,716	$	12,311	$	16,027

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, 2019 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. 3^rd party captives represents gross written premiums excluding 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