8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported) August 3, 2020

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 August 3, 2020, the registrant issued a press release and posted on its website (www.cna.com) a financial supplement providing information on its results of operations for the second quarter 2020. 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
99.1	CNA Financial Corporation press release, issued August 3, 2020, providing information on the second quarter 2020 results of operations.
99.2	CNA Financial Corporation financial supplement, posted on its website August 3, 2020, providing supplemental financial information on the second quarter 2020.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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:  August 3, 2020	By	/s/ Albert J. Miralles
		(Signature)
		Albert J. Miralles Executive Vice President and Chief Financial Officer

EX-99.1

FOR IMMEDIATE RELEASE

CONTACT:

MEDIA:	ANALYSTS:
Brandon Davis, 312-822-5885	Al Miralles, 312-822-5605

CNA FINANCIAL ANNOUNCES SECOND QUARTER 2020 RESULTS

• Q2 NET INCOME OF $151M, $0.55 PER SHARE

• Q2 CORE INCOME OF $99M, $0.36 PER SHARE

• Q2 P&C COMBINED RATIO OF 112.3%, UNDERLYING COMBINED RATIO OF 93.4%

• Q2 NET CATASTROPHE LOSSES OF $301M, OR 17.5 POINTS OF LOSS RATIO

• CATASTROPHE LOSSES INCLUDE $182M DUE TO COVID-19, $61M FROM CIVIL UNREST AND $58M FROM SEVERE WEATHER RELATED EVENTS

• QUARTERLY DIVIDEND OF $0.37 PER SHARE

CHICAGO, August 3, 2020 --- CNA Financial Corporation (NYSE: CNA) today announced second quarter2020 net income of $151 million, or $0.55 per share, and core income of $99 million, or $0.36 per share. Property & Casualty Operations combined ratio for the second quarter was 112.3%. Underwriting results for the second quarter of 2020 include previously announced net catastrophe losses of $301 million pretax, including $182 million related to COVID-19, $61 million related to civil unrest and $58 million related primarily to severe weather related events. The underlying combined ratio of 93.4% reflects a 0.4 point net benefit related to COVID-19 from lower loss frequency as a result of shelter in place restrictions and an adverse impact from a reduction in estimated audit premiums. These items decreased the loss ratio by 0.9 points and increased the expense ratio by 0.5 points. Net investment income was $534 million pretax for the second quarter of 2020, including $84 million from limited partnership and common stock investments, reflecting the equity market rebound during the quarter.

The U.S. P&C segments, excluding third party captives, generated gross written premium growth of 8% and net written premium growth of 4%. Excluding third party captives, gross written premiums grew 7% and net written premiums grew 3% for P&C overall.

Our Life & Group and Corporate & Other segments produced core income (loss) for the second quarter of 2020 of $14 million and $(11) million, respectively.

CNA Financial declared a quarterly dividend of $0.37 per share, payable September 3, 2020 to stockholders of record on August 17, 2020.

	Results for the Three Months Ended June 30				Results for the Six Months Ended June 30
($ millions, except per share data)	2020		2019		2020		2019
Net income	$	151	$	278	$	90	$	620
Core income (a)	99		294		207		612
Net income per diluted share	$	0.55	$	1.02	$	0.33	$	2.28
Core income per diluted share	0.36		1.08		0.76		2.25

	June 30, 2020		December 31, 2019
Book value per share	$	42.91	$	45.00
Book value per share excluding AOCI		42.34		44.81

(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

“Notwithstanding our second quarter results being impacted by considerable catastrophe losses from COVID-19 as well as civil unrest and weather related events, our underlying combined ratio improved year over year. As well, we benefited from accelerating P&C rate momentum and stable new business despite the economic disruption," said Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.

Property & Casualty Operations

	Results for the Three Months Ended June 30							Results for the Six Months Ended June 30
($ millions)	2020			2019				2020			2019
Gross written premiums ex. 3rd party captives	$	2,132		$	2,000			$	4,239		$	3,987
GWP ex. 3rd party captives change (% year over year)	7		%					6		%
Net written premiums	$	1,930		$	1,874			$	3,793		$	3,680
NWP change (% year over year)	3		%					3		%
Net investment income	$	324		$	303			$	442		$	663
Core income	96			298				218			612
Loss ratio excluding catastrophes and development	59.5		%	60.8			%	59.9		%	60.7			%
Effect of catastrophe impacts	17.5			2.2				10.9			2.9
Effect of development-related items	1.4			(1.1		)		0.4			(0.9		)
Loss ratio	78.4		%	61.9			%	71.2		%	62.7			%
Expense ratio	33.6		%	33.4			%	33.2		%	33.7			%
Combined ratio	112.3		%	95.7			%	104.8		%	96.8			%
Combined ratio excluding catastrophes and development	93.4		%	94.6			%	93.5		%	94.8			%

• The combined ratio excluding catastrophes and development improved 1.2 points as compared with the prior year quarter. In addition to a 0.4 point benefit related to COVID-19, the underlying combined ratio improved 0.8 points over the same period last year including a half point improvement in the loss ratio and a 0.3 point improvement in the expense ratio.

• The combined ratio increased 16.6 points as compared with the prior year quarter. Net catastrophe losses were $301 million, or 17.5 points of the loss ratio in the second quarter of 2020 compared with $38 million, or 2.2 points of the loss ratio, for the prior year quarter. Catastrophe losses in the second quarter of 2020 include $182 million related to COVID-19; $103 million for Specialty, $43 million for Commercial and $36 million for International. The losses were substantially driven by healthcare professional liability with additional impacts from workers' compensation, management liability, commercial property, trade credit and surety. Due to the recent timing of the event, emergence pattern of claims and long tail nature of certain exposures the losses are substantially classified as incurred but not reported (IBNR) reserves.

• Unfavorable net prior period development increased the loss ratio by 1.4 points in the quarter compared with 1.1 points of favorable development decreasing the loss ratio in the prior year quarter. Unfavorable net prior period development in the current quarter includes a previously announced $50 million pretax charge for mass tort exposures, primarily due to New York reviver statute-related claims.

• The U.S. P&C segments, excluding third party captives, generated gross written premium growth of 8% and net written premium growth of 4%. Excluding third party captives, gross written premiums grew 7% and net written premiums grew 3% for P&C overall.

2

Business Operating Highlights

Specialty

	Results for the Three Months Ended June 30								Results for the Six Months Ended June 30
($ millions)	2020				2019				2020				2019
Gross written premiums ex. 3rd party captives	$	811			$	755			$	1,552			$	1,485
GWP ex. 3rd party captives change (% year over year)	7			%					5			%
Net written premiums	$	742			$	713			$	1,436			$	1,411
NWP change (% year over year)	4			%					2			%
Core income	$	90			$	161			$	186			$	330
Loss ratio excluding catastrophes and development	59.9			%	59.9			%	59.7			%	60.2			%
Effect of catastrophe impacts	15.0				0.1				8.2				1.0
Effect of development-related items	(2.9		)		(2.6		)		(2.3		)		(2.9		)
Loss ratio	72.0			%	57.4			%	65.6			%	58.3			%
Expense ratio	32.0			%	33.1			%	32.1			%	33.0			%
Combined ratio	104.2			%	90.7			%	97.9			%	91.5			%
Combined ratio excluding catastrophes and development	92.1			%	93.2			%	92.0			%	93.4			%

• The combined ratio excluding catastrophes and development improved 1.1 points as compared with the prior year quarter due to a 1.1 point improvement in the expense ratio driven by lower underwriting expenses and higher net earned premiums. The underlying loss ratio was consistent with the prior year quarter.

• The combined ratio increased 13.5 points as compared with the prior year quarter. Net catastrophe losses were $105 million, or 15.0 points of the loss ratio in the second quarter of 2020, nearly all due to COVID-19, compared with $1 million, or 0.1 points of the loss ratio, for the prior year quarter. Favorable net prior period development improved the loss ratio by 2.9 points in the quarter compared with a 2.6 point improvement in the prior year quarter.

• Gross written premiums, excluding third party captives, grew 7% and net written premiums grew 4% for the second quarter of 2020 driven by strong rate.

3

Commercial

	Results for the Three Months Ended June 30							Results for the Six Months Ended June 30
($ millions)	2020			2019				2020			2019
Gross written premiums ex. 3rd party captives	$	1,044		$	958			$	2,103		$	1,891
GWP ex. 3rd party captives change (% year over year)	9		%					11		%
Net written premiums	$	949		$	912			$	1,899		$	1,761
NWP change (% year over year)	4		%					8		%
Core income	$	20		$	120			$	44		$	259
Loss ratio excluding catastrophes and development	59.0		%	61.7			%	60.1		%	61.9			%
Effect of catastrophe impacts	19.0			4.9				12.8			5.1
Effect of development-related items	6.0			(0.1		)		3.0			(0.3		)
Loss ratio	84.0		%	66.5			%	75.9		%	66.7			%
Expense ratio	33.9		%	32.6			%	33.6		%	33.2			%
Combined ratio	118.5		%	99.7			%	110.1		%	100.5			%
Combined ratio excluding catastrophes and development	93.5		%	94.9			%	94.3		%	95.7			%

• The combined ratio excluding catastrophes and development improved 1.4 points as compared with the prior year quarter which reflects a 0.7 point net benefit related to COVID-19 from lower loss frequency as a result of shelter in place restrictions and an adverse impact from a reduction in estimated audit premiums. These items decreased the loss ratio by 1.8 points and increased the expense ratio by 1.1 points.

• Excluding the impacts of COVID-19, the underlying combined ratio improved 0.7 points due to the loss ratio.

• The combined ratio increased 18.8 points as compared with the prior year quarter. Net catastrophe losses were $151 million, or 19.0 points of the loss ratio in the second quarter of 2020 compared with $37 million, or 4.9 points of the loss ratio, for the prior year quarter. Catastrophe losses in the second quarter of 2020 include $43 million related to COVID-19, $61 million related to civil unrest and $47 million related primarily to severe weather related events. Unfavorable net prior period development increased the loss ratio by 6.0 points in the quarter compared with 0.1 points of favorable development decreasing the loss ratio in the prior year quarter.

• Gross written premiums, excluding third party captives, grew 9% and net written premiums grew 4% for the second quarter of 2020 due to strong rate and higher new business.

4

International

	Results for the Three Months Ended June 30								Results for the Six Months Ended June 30
($ millions)	2020				2019				2020				2019
Gross written premiums	$	277			$	287			$	584			$	611
GWP change (% year over year)	(3		)	%					(4		)	%
Net written premiums	$	239			$	249			$	458			$	508
NWP change (% year over year)	(4		)	%					(10		)	%
Core (loss) income	$	(14	)		$	17			$	(12	)		$	23
Loss ratio excluding catastrophes and development	59.9			%	60.1			%	60.1			%	58.5		%
Effect of catastrophe impacts	19.9				0.2				11.9				1.3
Effect of development-related items	(1.2		)		(0.1		)		(0.7		)		2.7
Loss ratio	78.6			%	60.2			%	71.3			%	62.5		%
Expense ratio	36.7			%	37.3			%	36.1			%	37.2		%
Combined ratio	115.3			%	97.5			%	107.4			%	99.7		%
Combined ratio excluding catastrophes and development	96.6			%	97.4			%	96.2			%	95.7		%

• The combined ratio excluding catastrophes and development improved 0.8 points as compared with the prior year quarter due to a 0.2 point improvement in the underlying loss ratio primarily driven by lower loss frequency from the impact of COVID-19 as well as 0.6 points of improvement in the expense ratio driven by lower acquisition and underwriting expenses.

• The combined ratio increased 17.8 points for the second quarter of 2020 as compared with the prior year quarter. Net catastrophe losses were $45 million, or 19.9 points of the loss ratio in the second quarter of 2020, predominantly due to COVID-19, compared with less than $1 million, or 0.2 points of the loss ratio, for the prior year quarter. Favorable net prior year development improved the loss ratio by 1.2 points in the quarter compared with a 0.1 point improvement in the prior year quarter.

• Excluding currency fluctuations, gross written premiums decreased 1% and net written premiums decreased 2% for the second quarter of 2020 driven by the continued impact of the strategic exit from certain Lloyd’s business classes, offset by growth in Europe.

5

Life & Group

	Results for the Three Months Ended June 30				Results for the Six Months Ended June 30
($ millions)	2020		2019		2020		2019
Net investment income	$	206	$	205	$	414	$	409
Total operating revenues	332		335		667		670
Core income	14		7		18		17

Core income of $14 million for the second quarter of 2020 was primarily driven by better than expected persistency.

Corporate & Other

	Results for the Three Months Ended June 30						Results for the Six Months Ended June 30
($ millions)	2020			2019			2020			2019
Net investment income	$	4		$	7		$	7		$	14
Interest expense	31			34			62			68
Core loss	(11		)	(11		)	(29		)	(17		)

Core loss of $11 million for the second quarter of 2020 was consistent with the prior year quarter.

Net Investment Income

	Results for the Three Months Ended June 30				Results for the Six Months Ended June 30
	2020		2019		2020		2019
Pretax net investment income	$	534	$	515	$	863	$	1,086
Net investment income, after tax	436		420		709		885

Pretax net investment income increased $19 million as compared with the prior year quarter. The increase was driven by limited partnership and common stock investments, which returned 5.0%, or $84 million in the second quarter of 2020 compared with 2.1%, or $43 million, in 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 8:00 a.m. (CT) today. On the conference call will be Dino E. Robusto, Chairman and Chief Executive Officer of CNA Financial Corporation, Al Miralles, 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 two insurance companies based in the U.K. and Luxembourg, a branch operation in Canada as well as through our Lloyd's Syndicate.

• 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 (A&EP).

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. 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.

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 net investment gains or losses and any cumulative effects of changes in accounting guidance. 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 reflective of our primary operations. Management monitors core income (loss) for each business segment to assess segment performance. Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure.

	Results for the Three Months Ended June 30					Results for the Six Months Ended June 30
($ millions)	2020		2019			2020			2019
Net income	$	151	$	278		$	90		$	620
Less: Net investment gains (losses)	52		(16		)	(117		)	8
Core income	$	99	$	294		$	207		$	612

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 June 30					Results for the Six Months Ended June 30
	2020		2019			2020			2019
Net income per diluted share	$	0.55	$	1.02		$	0.33		$	2.28
Less: Net investment gains (losses)	0.19		(0.06		)	(0.43		)	0.03
Core income per diluted share	$	0.36	$	1.08		$	0.76		$	2.25

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

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

	June 30, 2020		December 31, 2019
Book value per share	$	42.91	$	45.00
Less: Per share impact of AOCI	0.57		0.19
Book value per share excluding AOCI	$	42.34	$	44.81

8

Calculation of Return on Equity and Core Return on Equity

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

	Results for the Three Months Ended June 30						Results for the Six Months Ended June 30
($ millions)	2020			2019			2020			2019
Annualized net income	$	603		$	1,114		$	179		$	1,240
Average stockholders' equity including AOCI (a)	11,003			11,771			11,930			11,652
Return on equity	5.5		%	9.5		%	1.5		%	10.6		%
Annualized core income	$	394		$	1,178		$	413		$	1,225
Average stockholders' equity excluding AOCI (a)	11,461			11,873			11,827			12,031
Core return on equity	3.4		%	9.9		%	3.5		%	10.2		%

(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 © 2020 CNA. All rights reserved.

# # #

9

EX-99.2

CNA Financial Corporation

Supplemental Financial Information

June 30, 2020

This report is for informational purposes only and includes consolidated financial statements and financial exhibits that are unaudited. This report should be read in conjunction with documents filed with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K.

Table of Contents

	Page
Consolidated Results
Statements of Operations	1
Components of Income (Loss), Per Share Data and Return on Equity	2
Selected Balance Sheet Data and Statement of Cash Flows Data	3
Results of Operations
Property & Casualty	4
Specialty	5
Commercial	6
International	7
Life & Group	8
Corporate & Other	9
Investment Information
Investment Summary - Consolidated	10
Investment Summary - Property & Casualty and Corporate & Other	11
Investment Summary - Life & Group	12
Investments - Fixed Maturity Securities by Credit Rating	13
Components of Net Investment Income	14
Other
Claim & Claim Adjustment Expense Reserve Rollforward	15
Life & Group Policyholder Reserves	16
Definitions and Presentation	17

Statements of Operations

Periods ended June 30	Three Months									Six Months
(In millions)	2020			2019			Change			2020			2019			Change
Revenues:
Net earned premiums	$	1,850		$	1,824		1		%	$	3,719		$	3,627		3		%
Net investment income	534			515			4			863			1,086			(21	)
Net investment gains (losses)	69			(18		)				(147		)	13
Non-insurance warranty revenue	308			285						609			566
Other revenues	5			4						13			13
Total revenues	2,766			2,610			6			5,057			5,305			(5	)
Claims, Benefits and Expenses:
Insurance claims and policyholders' benefits	1,642			1,352						3,067			2,709
Amortization of deferred acquisition costs	342			338						686			680
Non-insurance warranty expense	285			263						566			523
Other operating expenses	284			281						583			564
Interest	31			34						62			68
Total claims, benefits and expenses	2,584			2,268			(14	)		4,964			4,544			(9	)
Income (loss) before income tax	182			342						93			761
Income tax (expense) benefit	(31		)	(64		)				(3		)	(141		)
Net income (loss)	$	151		$	278		(46	)	%	$	90		$	620		(85	)	%

1

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

Periods ended June 30	Three Months							Six Months
(In millions, except per share data)	2020			2019				2020				2019
Components of Income (Loss)
Core income (loss)	$	99		$	294			$	207			$	612
Net investment gains (losses)	52			(16		)		(117		)		8
Net income (loss)	$	151		$	278			$	90			$	620
Diluted Earnings (Loss) Per Common Share
Core income (loss)	$	0.36		$	1.08			$	0.76			$	2.25
Net investment gains (losses)	0.19			(0.06		)		(0.43		)		0.03
Diluted earnings (loss) per share	$	0.55		$	1.02			$	0.33			$	2.28
Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic	271.5			271.6				271.5				271.6
Diluted	272.0			272.4				272.3				272.5
Return on Equity
Net income (loss) (1)	5.5		%	9.5			%	1.5			%	10.6		%
Core income (loss) (2)	3.4			9.9				3.5				10.2

(1) Annualized net income (loss) divided by the average stockholders' equity including accumulated other comprehensive income (loss) (AOCI) for the period. Average equity including AOCI is calculated using a simple average of the beginning and ending balances for the period.

(2) Annualized core income (loss) divided by the average stockholders' equity excluding AOCI for the period. Average equity excluding AOCI is calculated using a simple average of the beginning and ending balances for the period.

2

Selected Balance Sheet Data and Statement of Cash Flows Data

(In millions, except per share data)	June 30, 2020		December 31, 2019
Total investments	$	47,757	$	47,744
Reinsurance receivables, net of allowance for uncollectible receivables	4,435		4,179
Total assets	62,095		60,612
Insurance reserves	39,862		38,614
Debt	2,680		2,679
Total liabilities	50,450		48,397
Accumulated other comprehensive income (loss) (1)	154		51
Total stockholders' equity	11,645		12,215
Book value per common share	$	42.91	$	45.00
Book value per common share excluding AOCI	$	42.34	$	44.81
Outstanding shares of common stock (in millions of shares)	271.4		271.4
Statutory capital and surplus - Combined Continental Casualty Companies (2)	$	9,952	$	10,787

Three Months Ended June 30	2020			2019
Net cash flows provided (used) by operating activities	$	438		$	227
Net cash flows provided (used) by investing activities	(612		)	(56		)
Net cash flows provided (used) by financing activities	(101		)	(123		)
Net cash flows provided (used) by operating, investing and financing activities	$	(275	)	$	48

Six Months Ended June 30	2020			2019
Net cash flows provided (used) by operating activities	$	650		$	514
Net cash flows provided (used) by investing activities	475			233
Net cash flows provided (used) by financing activities	(776		)	(788		)
Net cash flows provided (used) by operating, investing and financing activities	$	349		$	(41	)

(1) As of June 30, 2020 and December 31, 2019, the net unrealized gains on investments included in AOCI were net of after-tax Shadow Adjustments of $2,342 million and $2,198 million. To the extent that unrealized gains on fixed income securities supporting certain products within the Life & Group segment would result in a premium deficiency if realized, an increase in Insurance reserves are recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (loss) (Shadow Adjustments).

(2) Statutory capital and surplus as of June 30, 2020 is preliminary.

3

Property & Casualty - Results of Operations

Periods ended June 30	Three Months											Six Months
(In millions)	2020				2019				Change			2020				2019				Change
Gross written premiums	$	3,165			$	3,035			4		%	$	6,248			$	6,001			4		%
Gross written premiums ex. 3rd party captives	2,132				2,000				7			4,239				3,987				6
Net written premiums	1,930				1,874				3			3,793				3,680				3
Net earned premiums	1,724				1,694				2			3,466				3,368				3
Net investment income	324				303							442				663
Non-insurance warranty revenue	308				285							609				566
Other revenues	5				3							13				11
Total operating revenues	2,361				2,285				3			4,530				4,608				(2	)
Insurance claims and policyholders' benefits	1,356				1,055							2,479				2,125
Amortization of deferred acquisition costs	342				338							686				680
Non-insurance warranty expense	285				263							566				523
Other insurance related expenses	236				229							468				454
Other expenses	21				22							53				49
Total claims, benefits and expenses	2,240				1,907				(17	)		4,252				3,831				(11	)
Core income (loss) before income tax	121				378							278				777
Income tax (expense) benefit on core income (loss)	(25		)		(80		)					(60		)		(165		)
Core income (loss)	$	96			$	298			(68	)	%	$	218			$	612			(64	)	%
Other Performance Metrics
Underwriting gain (loss)	$	(210	)		$	72			N/M		%	$	(167	)		$	109			N/M		%
Loss & LAE ratio	78.4			%	61.9			%	(16.5	)	pts	71.2			%	62.7			%	(8.5	)	pts
Expense ratio	33.6				33.4				(0.2	)		33.2				33.7				0.5
Dividend ratio	0.3				0.4				0.1			0.4				0.4				—
Combined ratio	112.3			%	95.7			%	(16.6	)	pts	104.8			%	96.8			%	(8.0	)	pts
Combined ratio excluding catastrophes and development	93.4			%	94.6			%	1.2		pts	93.5			%	94.8			%	1.3		pts
Net accident year catastrophe losses incurred	$	301			$	38						$	376			$	96
Effect on loss & LAE ratio	17.5			%	2.2			%	(15.3	)	pts	10.9			%	2.9			%	(8.0	)	pts
Net prior year development and other: (favorable) / unfavorable	$	25			$	(19	)					$	14			$	(28	)
Effect on loss & LAE ratio	1.4			%	(1.1		)	%	(2.5	)	pts	0.4			%	(0.9		)	%	(1.3	)	pts
Rate	11			%	4			%	7		pts	10			%	4			%	6		pts
Renewal premium change	9			%	6			%	3		pts	9			%	5			%	4		pts
Retention	83			%	84			%	(1	)	pts	82			%	84			%	(2	)	pts
New business	$	363			$	358			1		%	$	703			$	687			2		%

4

Specialty - Results of Operations

Periods ended June 30	Three Months											Six Months
(In millions)	2020				2019				Change			2020				2019				Change
Gross written premiums	$	1,762			$	1,724			2		%	$	3,476			$	3,425			1		%
Gross written premiums ex. 3rd party captives	811				755				7			1,552				1,485				5
Net written premiums	742				713				4			1,436				1,411				2
Net earned premiums	705				688				2			1,390				1,349				3
Net investment income	133				134							189				289
Non-insurance warranty revenue	308				285							609				566
Other revenues	—				(1		)					1				—
Total operating revenues	1,146				1,106				4			2,189				2,204				(1	)
Insurance claims and policyholders' benefits	509				396							915				789
Amortization of deferred acquisition costs	153				152							304				299
Non-insurance warranty expense	285				263							566				523
Other insurance related expenses	73				76							142				146
Other expenses	10				12							23				24
Total claims, benefits and expenses	1,030				899				(15	)		1,950				1,781				(9	)
Core income (loss) before income tax	116				207							239				423
Income tax (expense) benefit on core income (loss)	(26		)		(46		)					(53		)		(93		)
Core income (loss)	$	90			$	161			(44	)	%	$	186			$	330			(44	)	%
Other Performance Metrics
Underwriting gain (loss)	$	(30	)		$	64			(147	)	%	$	29			$	115			(75	)	%
Loss & LAE ratio	72.0			%	57.4			%	(14.6	)	pts	65.6			%	58.3			%	(7.3	)	pts
Expense ratio	32.0				33.1				1.1			32.1				33.0				0.9
Dividend ratio	0.2				0.2				—			0.2				0.2				—
Combined ratio	104.2			%	90.7			%	(13.5	)	pts	97.9			%	91.5			%	(6.4	)	pts
Combined ratio excluding catastrophes and development	92.1			%	93.2			%	1.1		pts	92.0			%	93.4			%	1.4		pts
Net accident year catastrophe losses incurred	$	105			$	1						$	113			$	13
Effect on loss & LAE ratio	15.0			%	0.1			%	(14.9	)	pts	8.2			%	1.0			%	(7.2	)	pts
Net prior year development and other: (favorable) / unfavorable	$	(20	)		$	(18	)					$	(31	)		$	(38	)
Effect on loss & LAE ratio	(2.9		)	%	(2.6		)	%	0.3		pts	(2.3		)	%	(2.9		)	%	(0.6	)	pts
Rate	12			%	4			%	8		pts	10			%	3			%	7		pts
Renewal premium change	11			%	5			%	6		pts	10			%	6			%	4		pts
Retention	85			%	89			%	(4	)	pts	85			%	89			%	(4	)	pts
New business	$	96			$	97			(1	)	%	$	170			$	182			(7	)	%

5

Commercial - Results of Operations

Periods ended June 30	Three Months											Six Months
(In millions)	2020				2019				Change			2020				2019				Change
Gross written premiums	$	1,126			$	1,024			10		%	$	2,188			$	1,965			11		%
Gross written premiums ex. 3rd party captives	1,044				958				9			2,103				1,891				11
Net written premiums	949				912				4			1,899				1,761				8
Net earned premiums	795				763				4			1,613				1,526				6
Net investment income	177				154							224				344
Other revenues	5				3							12				10
Total operating revenues	977				920				6			1,849				1,880				(2	)
Insurance claims and policyholders' benefits	671				512							1,234				1,027
Amortization of deferred acquisition costs	147				130							291				257
Other insurance related expenses	124				119							251				249
Other expenses	13				7							19				18
Total claims, benefits and expenses	955				768				(24	)		1,795				1,551				(16	)
Core income (loss) before income tax	22				152							54				329
Income tax (expense) benefit on core income (loss)	(2		)		(32		)					(10		)		(70		)
Core income (loss)	$	20			$	120			(83	)	%	$	44			$	259			(83	)	%
Other Performance Metrics
Underwriting gain (loss)	$	(147	)		$	2			N/M		%	$	(163	)		$	(7	)		N/M		%
Loss & LAE ratio	84.0			%	66.5			%	(17.5	)	pts	75.9			%	66.7			%	(9.2	)	pts
Expense ratio	33.9				32.6				(1.3	)		33.6				33.2				(0.4	)
Dividend ratio	0.6				0.6				—			0.6				0.6				—
Combined ratio	118.5			%	99.7			%	(18.8	)	pts	110.1			%	100.5			%	(9.6	)	pts
Combined ratio excluding catastrophes and development	93.5			%	94.9			%	1.4		pts	94.3			%	95.7			%	1.4		pts
Net accident year catastrophe losses incurred	$	151			$	37						$	208			$	77
Effect on loss & LAE ratio	19.0			%	4.9			%	(14.1	)	pts	12.8			%	5.1			%	(7.7	)	pts
Net prior year development and other: (favorable) / unfavorable	$	48			$	—						$	48			$	(3	)
Effect on loss & LAE ratio	6.0			%	(0.1		)	%	(6.1	)	pts	3.0			%	(0.3		)	%	(3.3	)	pts
Rate	9			%	3			%	6		pts	9			%	3			%	6		pts
Renewal premium change	8			%	5			%	3		pts	8			%	5			%	3		pts
Retention	83			%	87			%	(4	)	pts	84			%	86			%	(2	)	pts
New business	$	205			$	186			10		%	$	403			$	350			15		%

6

International - Results of Operations

Periods ended June 30	Three Months											Six Months
(In millions)	2020				2019				Change			2020				2019				Change
Gross written premiums	$	277			$	287			(3	)	%	$	584			$	611			(4	)	%
Net written premiums	239				249				(4	)		458				508				(10	)
Net earned premiums	224				243				(8	)		463				493				(6	)
Net investment income	14				15							29				30
Other revenues	—				1							—				1
Total operating revenues	238				259				(8	)		492				524				(6	)
Insurance claims and policyholders' benefits	176				147							330				309
Amortization of deferred acquisition costs	42				56							91				124
Other insurance related expenses	39				34							75				59
Other expenses	(2		)		3							11				7
Total claims, benefits and expenses	255				240				(6	)		507				499				(2	)
Core income (loss) before income tax	(17		)		19							(15		)		25
Income tax (expense) benefit on core income (loss)	3				(2		)					3				(2		)
Core income (loss)	$	(14	)		$	17			(182	)	%	$	(12	)		$	23			(152	)	%
Other Performance Metrics
Underwriting gain (loss)	$	(33	)		$	6			N/M		%	$	(33	)		$	1			N/M		%
Loss & LAE ratio	78.6			%	60.2			%	(18.4	)	pts	71.3			%	62.5			%	(8.8	)	pts
Expense ratio	36.7				37.3				0.6			36.1				37.2				1.1
Dividend ratio	—				—				—			—				—				—
Combined ratio	115.3			%	97.5			%	(17.8	)	pts	107.4			%	99.7			%	(7.7	)	pts
Combined ratio excluding catastrophes and development	96.6			%	97.4			%	0.8		pts	96.2			%	95.7			%	(0.5	)	pts
Net accident year catastrophe losses incurred	$	45			$	—						$	55			$	6
Effect on loss & LAE ratio	19.9			%	0.2			%	(19.7	)	pts	11.9			%	1.3			%	(10.6	)	pts
Net prior year development and other: (favorable) / unfavorable	$	(3	)		$	(1	)					$	(3	)		$	13
Effect on loss & LAE ratio	(1.2		)	%	(0.1		)	%	1.1		pts	(0.7		)	%	2.7			%	3.4		pts
Rate	13			%	7			%	6		pts	11			%	6			%	5		pts
Renewal premium change	11			%	8			%	3		pts	9			%	4			%	5		pts
Retention	74			%	70			%	4		pts	72			%	69			%	3		pts
New business	$	62			$	75			(17	)	%	$	130			$	155			(16	)	%

7

Life & Group - Results of Operations

Periods ended June 30	Three Months					Six Months
(In millions)	2020		2019			2020			2019
Net earned premiums	$	126	$	130		$	253		$	260
Net investment income	206		205			414			409
Other revenues	—		—			—			1
Total operating revenues	332		335			667			670
Insurance claims and policyholders' benefits	304		309			620			617
Other insurance related expenses	25		30			51			58
Other expenses	—		2			3			4
Total claims, benefits and expenses	329		341			674			679
Core income (loss) before income tax	3		(6		)	(7		)	(9		)
Income tax (expense) benefit on core income (loss)	11		13			25			26
Core income (loss)	$	14	$	7		$	18		$	17

8

Corporate & Other - Results of Operations

Periods ended June 30	Three Months						Six Months
(In millions)	2020			2019			2020			2019
Net earned premiums	$	—		$	—		$	—		$	(1	)
Net investment income	4			7			7			14
Other revenues	—			1			—			1
Total operating revenues	4			8			7			14
Insurance claims and policyholders' benefits	(18		)	(12		)	(32		)	(33		)
Other insurance related expenses	(1		)	(1		)	(1		)	(3		)
Other expenses	34			33			71			70
Total claims, benefits and expenses	15			20			38			34
Core income (loss) before income tax	(11		)	(12		)	(31		)	(20		)
Income tax (expense) benefit on core income (loss)	—			1			2			3
Core income (loss)	$	(11	)	$	(11	)	$	(29	)	$	(17	)

9

Investment Summary - Consolidated

	June 30, 2020						March 31, 2020					December 31, 2019
(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	$	22,808		$	2,537		$	20,749	$	602		$	22,069	$	2,260
States, municipalities and political subdivisions:
Tax-exempt	8,185			1,199			7,839		1,113			7,804		1,155
Taxable	2,942			502			2,652		421			2,848		404
Total states, municipalities and political subdivisions	11,127			1,701			10,491		1,534			10,652		1,559
Asset-backed:
RMBS	3,784			167			4,397		199			4,519		132
CMBS	2,116			(23		)	2,090		(117		)	2,346		81
Other ABS	1,959			19			1,744		(124		)	1,962		37
Total asset-backed	7,859			163			8,231		(42		)	8,827		250
U.S. Treasury and obligations of government-sponsored enterprises	498			7			155		8			145		(1		)
Foreign government	483			26			463		11			504		13
Redeemable preferred stock	—			—			9		—			10		—
Total fixed maturity securities	42,775			4,434			40,098		2,113			42,207		4,081
Equities:
Common stock	154			—			191		—			142		—
Non-redeemable preferred stock	705			—			608		—			723		—
Total equities	859			—			799		—			865		—
Limited partnership investments	1,558			—			1,509		—			1,752		—
Other invested assets	65			—			63		—			65		—
Mortgage loans	1,042			—			1,021		—			994		—
Short term investments	1,458			1			596		(2		)	1,861		—
Total investments	$	47,757		$	4,435		$	44,086	$	2,111		$	47,744	$	4,081
Net receivable/(payable) on investment activity	$	(403	)				$	136				$	37
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

	June 30, 2020						March 31, 2020					December 31, 2019
(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	$	14,383		$	888		$	13,243	$	(203	)	$	13,925	$	738
States, municipalities and political subdivisions:
Tax-exempt	1,154			61			683		33			646		37
Taxable	1,030			87			912		74			1,077		71
Total states, municipalities and political subdivisions	2,184			148			1,595		107			1,723		108
Asset-backed:
RMBS	3,702			162			4,312		196			4,441		128
CMBS	2,028			(25		)	2,005		(116		)	2,264		77
Other ABS	1,783			1			1,612		(122		)	1,842		29
Total asset-backed	7,513			138			7,929		(42		)	8,547		234
U.S. Treasury and obligations of government-sponsored enterprises	489			7			145		8			143		(1		)
Foreign government	477			25			458		11			498		12
Redeemable preferred stock	—			—			4		—			5		—
Total fixed maturity securities	25,046			1,206			23,374		(119		)	24,841		1,091
Equities:
Common stock	154			—			191		—			142		—
Non-redeemable preferred stock	168			—			156		—			181		—
Total equities	322			—			347		—			323		—
Limited partnership investments	1,558			—			1,509		—			1,752		—
Other invested assets	65			—			63		—			65		—
Mortgage loans	761			—			749		—			715		—
Short term investments	1,397			1			583		(2		)	1,774		—
Total investments	$	29,149		$	1,207		$	26,625	$	(121	)	$	29,470	$	1,091
Net receivable/(payable) on investment activity	$	(446	)				$	124				$	17
Effective duration (in years)	4.1						4.1					4.1
Weighted average rating	A						A-					A-

11

Investment Summary - Life & Group

	June 30, 2020				March 31, 2020					December 31, 2019
(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	$	8,425	$	1,649	$	7,506	$	805		$	8,144	$	1,522
States, municipalities and political subdivisions:
Tax-exempt	7,031		1,138		7,156		1,080			7,158		1,118
Taxable	1,912		415		1,740		347			1,771		333
Total states, municipalities and political subdivisions	8,943		1,553		8,896		1,427			8,929		1,451
Asset-backed:
RMBS	82		5		85		3			78		4
CMBS	88		2		85		(1		)	82		4
Other ABS	176		18		132		(2		)	120		8
Total asset-backed	346		25		302		—			280		16
U.S. Treasury and obligations of government-sponsored enterprises	9		—		10		—			2		—
Foreign government	6		1		5		—			6		1
Redeemable preferred stock	—		—		5		—			5		—
Total fixed maturity securities	17,729		3,228		16,724		2,232			17,366		2,990
Equities:
Common stock	—		—		—		—			—		—
Non-redeemable preferred stock	537		—		452		—			542		—
Total equities	537		—		452		—			542		—
Limited partnership investments	—		—		—		—			—		—
Other invested assets	—		—		—		—			—		—
Mortgage loans	281		—		272		—			279		—
Short term investments	61		—		13		—			87		—
Total investments	$	18,608	$	3,228	$	17,461	$	2,232		$	18,274	$	2,990
Net receivable/(payable) on investment activity	$	43			$	12				$	20
Effective duration (in years)	8.8				8.7					8.9
Weighted average rating	A				A					A

12

Investments - Fixed Maturity Securities by Credit Rating

June 30, 2020	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	$	—		$	—	$	49		$	2		$	485		$	55	$	5,135		$	779		$	15,267		$	1,740		$	1,872		$	(39	)	$	22,808		$	2,537
States, municipalities and political subdivisions:
Tax-exempt	—			—		2,508			377			3,516			532		1,910			261			235			29			16			—			8,185			1,199
Taxable	—			—		530			39			1,609			284		769			177			34			1			—			1			2,942			502
Total states, municipalities and political subdivisions	—			—		3,038			416			5,125			816		2,679			438			269			30			16			1			11,127			1,701
Asset-backed:
RMBS	3,472			142		6			—			24			1		36			1			12			1			234			22			3,784			167
CMBS	27			—		328			21			741			32		278			(11		)	541			(41		)	201			(24		)	2,116			(23		)
Other ABS	—			—		43			(1		)	106			3		1,045			5			750			10			15			2			1,959			19
Total asset-backed	3,499			142		377			20			871			36		1,359			(5		)	1,303			(30		)	450			—			7,859			163
U.S. Treasury and obligations of government-sponsored enterprises	498			7		—			—			—			—		—			—			—			—			—			—			498			7
Foreign government	—			—		135			5			236			13		84			6			28			2			—			—			483			26
Redeemable preferred stock	—			—		—			—			—			—		—			—			—			—			—			—			—			—
Total fixed maturity securities	$	3,997		$	149	$	3,599		$	443		$	6,717		$	920	$	9,257		$	1,218		$	16,867		$	1,742		$	2,338		$	(38	)	$	42,775		$	4,434
Percentage of total fixed maturity securities	9		%			8		%				16		%			22		%				40		%				5		%				100		%

13

Components of Net Investment Income

	Consolidated
Periods ended June 30	Three Months						Six Months
(In millions)	2020			2019			2020				2019
Taxable fixed income securities	$	360		$	385		$	731			$	768
Tax-exempt fixed income securities	80			80			158				162
Total fixed income securities	440			465			889				930
Limited partnership and common stock investments	84			43			(41		)		139
Other, net of investment expense	10			7			15				17
Pretax net investment income	$	534		$	515		$	863			$	1,086
Fixed income securities, after tax	$	361		$	382		$	728			$	762
Net investment income, after tax	436			420			709				885
Effective income yield for fixed income securities, pretax	4.6		%	4.8		%	4.6			%	4.8		%
Effective income yield for fixed income securities, after tax	3.8			3.9			3.8				3.9
Limited partnership and common stock return	5.0			2.1			(2.3		)		6.8

	Property & Casualty and Corporate & Other
Periods ended June 30	Three Months						Six Months
(In millions)	2020			2019			2020				2019
Taxable fixed income securities	$	225		$	254		$	459			$	507
Tax-exempt fixed income securities	8			5			13				11
Total fixed income securities	233			259			472				518
Limited partnership and common stock investments	84			43			(41		)		139
Other, net of investment expense	11			8			18				20
Pretax net investment income	$	328		$	310		$	449			$	677
Fixed income securities, after tax	$	187		$	206		$	376			$	411
Net investment income, after tax	261			246			358				537
Effective income yield for fixed income securities, pretax	4.0		%	4.3		%	4.0			%	4.3		%
Effective income yield for fixed income securities, after tax	3.2			3.5			3.2				3.4

	Life & Group
Periods ended June 30	Three Months								Six Months
(In millions)	2020				2019				2020				2019
Taxable fixed income securities	$	135			$	131			$	272			$	261
Tax-exempt fixed income securities	72				75				145				151
Total fixed income securities	207				206				417				412
Limited partnership and common stock investments	—				—				—				—
Other, net of investment expense	(1		)		(1		)		(3		)		(3		)
Pretax net investment income	$	206			$	205			$	414			$	409
Fixed income securities, after tax	$	174			$	176			$	352			$	351
Net investment income, after tax	175				174				351				348
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

14

Claim & Claim Adjustment Expense Reserve Rollforward

Three months ended June 30, 2020 (In millions)	Specialty			Commercial			International			P&C Operations			Life & Group			Corporate & Other			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	5,472		$	8,704		$	1,818		$	15,994		$	3,712		$	2,166		$	21,872
Ceded	777			813			235			1,825			146			1,996			3,967
Net	4,695			7,891			1,583			14,169			3,566			170			17,905
Net incurred claim & claim adjustment expenses	508			666			176			1,350			267			1			1,618
Net claim & claim adjustment expense payments	(384		)	(540		)	(126		)	(1,050		)	(254		)	(4		)	(1,308		)
Foreign currency translation adjustment and other	—			2			21			23			30			—			53
Claim & claim adjustment expense reserves, end of period
Net	4,819			8,019			1,654			14,492			3,609			167			18,268
Ceded	877			811			252			1,940			142			1,920			4,002
Gross	$	5,696		$	8,830		$	1,906		$	16,432		$	3,751		$	2,087		$	22,270

Six months ended June 30, 2020 (In millions)	Specialty			Commercial			International			P&C Operations			Life & Group			Corporate & Other			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	5,238		$	8,656		$	1,876		$	15,770		$	3,716		$	2,234		$	21,720
Ceded	562			807			248			1,617			159			2,059			3,835
Net	4,676			7,849			1,628			14,153			3,557			175			17,885
Net incurred claim & claim adjustment expenses	913			1,224			330			2,467			547			2			3,016
Net claim & claim adjustment expense payments	(771		)	(1,055		)	(258		)	(2,084		)	(505		)	(9		)	(2,598		)
Foreign currency translation adjustment and other	1			1			(46		)	(44		)	10			(1		)	(35		)
Claim & claim adjustment expense reserves, end of period
Net	4,819			8,019			1,654			14,492			3,609			167			18,268
Ceded	877			811			252			1,940			142			1,920			4,002
Gross	$	5,696		$	8,830		$	1,906		$	16,432		$	3,751		$	2,087		$	22,270

15

Life & Group Policyholder Reserves

June 30, 2020
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,914	$	9,543	$	12,457
Structured settlement annuities	506		—		506
Other	13		—		13
Total	3,433		9,543		12,976
Shadow adjustments	176		2,789		2,965
Ceded reserves	142		264		406
Total gross reserves	$	3,751	$	12,596	$	16,347

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

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 I 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 net investment gains or losses and any cumulative effects of changes in accounting guidance. 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 reflective of our primary 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

XML

Cover Page Cover Page	Aug. 03, 2020
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Aug. 03, 2020
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