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Schedule II. Condensed Financial Information of Registrant (Parent Company)
 12 Months Ended
Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]  
Schedule II. Condensed Financial Information of Registrant (Parent Company)
SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY)
CNA Financial Corporation
Statements of Operations and Comprehensive Income (Loss)
Years ended December 31
 
 
 
 
 
(In millions)
2019
 
2018
 
2017
Revenues
 
 
 
 
 
Net investment income
$
13

 
$
10

 
$
6

Net investment losses
(21
)
 
—

 
(42
)
Total revenues
(8
)
 
10

 
(36
)
Expenses
 
 
 
 
 
Administrative and general
1

 
1

 
2

Interest
131

 
135

 
152

Total expenses
132

 
136

 
154

Loss from operations before income taxes and equity in net income of subsidiaries
(140
)
 
(126
)
 
(190
)
Income tax benefit
21

 
9

 
57

Loss before equity in net income of subsidiaries
(119
)
 
(117
)
 
(133
)
Equity in net income of subsidiaries
1,119

 
930

 
1,032

Net income
1,000

 
813

 
899

Equity in other comprehensive income (loss) of subsidiaries
929

 
(894
)
 
205

Total comprehensive income (loss)
$
1,929

 
$
(81
)
 
$
1,104


See accompanying Notes to Condensed Financial Information as well as the
Consolidated Financial Statements and accompanying Notes.
CNA Financial Corporation
Balance Sheets
December 31
 
 
 
(In millions, except share data)
2019
 
2018
Assets
 
 
 
Investment in subsidiaries
$
14,412

 
$
13,427

Cash
1

 
1

Short term investments
521

 
519

Amounts due from affiliates
2

 
2

Other assets
1

 
—

Total assets
$
14,937

 
$
13,949

Liabilities
 
 
 
Long term debt
$
2,679

 
$
2,680

Other liabilities
43

 
52

Total liabilities
2,722

 
2,732

Stockholders' Equity
 
 
 
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,412,591 and 271,456,978 shares outstanding)
683

 
683

Additional paid-in capital
2,203

 
2,192

Retained earnings
9,348

 
9,277

Accumulated other comprehensive income (loss)
51

 
(878
)
Treasury stock (1,627,652 and 1,583,265 shares), at cost
(70
)
 
(57
)
Total stockholders' equity
12,215

 
11,217

Total liabilities and stockholders' equity
$
14,937

 
$
13,949


See accompanying Notes to Condensed Financial Information as well as the
Consolidated Financial Statements and accompanying Notes.
CNA Financial Corporation
Statements of Cash Flows
Years ended December 31
 
 
 
 
 
(In millions)
2019
 
2018
 
2017
Cash Flows from Operating Activities
 
 
 
 
 
Net income
$
1,000

 
$
813

 
$
899

Adjustments to reconcile net income to net cash flows provided by operating activities:
 
 
 
 
 
Equity in net income of subsidiaries
(1,119
)
 
(930
)
 
(1,032
)
Dividends received from subsidiaries
1,065

 
1,026

 
955

Net investment losses
21

 
—

 
42

Other, net
13

 
16

 
36

Net cash flows provided by operating activities
980

 
925

 
900

Cash Flows from Investing Activities
 
 
 
 
 
Change in short term investments
10

 
130

 
(146
)
Capital contributions to subsidiaries
(2
)
 
(2
)
 
—

Other, net
—

 
—

 
—

Net cash flows provided (used) by investing activities
8

 
128

 
(146
)
Cash Flows from Financing Activities
 
 
 
 
 
Dividends paid to common stockholders
(929
)
 
(896
)
 
(842
)
Proceeds from the issuance of debt
496

 
—

 
496

Repayment of debt
(520
)
 
(150
)
 
(391
)
Purchase of Treasury Stock
(23
)
 
—

 
—

Other, net
(12
)
 
(7
)
 
(17
)
Net cash flows used by financing activities
(988
)
 
(1,053
)
 
(754
)
Net change in cash
—

 
—

 
—

Cash, beginning of year
1

 
1

 
1

Cash, end of year
$
1

 
$
1

 
$
1


See accompanying Notes to Condensed Financial Information as well as the
Consolidated Financial Statements and accompanying Notes.
Notes to Condensed Financial Information
A. Summary of Significant Accounting Policies
Basis of Presentation
The condensed financial information of CNA Financial Corporation (CNAF or the Parent Company) should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Item 8 of this Form 10-K. CNAF’s subsidiaries are accounted for using the equity method of accounting. Equity in net income of these subsidiaries is presented on the Condensed Statements of Operations as Equity in net income of subsidiaries. Loews owned approximately 89% of the outstanding common stock of CNAF as of December 31, 2019.