EX-99.2 3 q22024exhibit992.htm EX-99.2 Document


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CNA Financial Corporation
Supplemental Financial Information


June 30, 2024



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

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Statements of Operations
Periods ended June 30Three MonthsSix Months
(In millions)20242023Change20242023Change
Revenues:
Net earned premiums$2,498$2,3476 %$4,939$4,5957 %
Net investment income6185757 1,2271,10012 
Net investment (losses) gains(10)(32)(32)(67)
Non-insurance warranty revenue404407811814
Other revenues971814

Total revenues3,519 3,304 7 6,963 6,456 8 
Claims, Benefits and Expenses:
Insurance claims and policyholders’ benefits (re-measurement loss of $(25), $(33), $(40) and $(34))
1,8821,7793,6893,432
Amortization of deferred acquisition costs435403879782
Non-insurance warranty expense388384782768
Other operating expenses378346715683
Interest34316959
Total claims, benefits and expenses3,117 2,943 (6)6,134 5,724 (7)
Income (loss) before income tax402 361 829 732 
Income tax (expense) benefit(85)(78)(174)(152)
Net income (loss)$317 $283 12 %$655 $580 13 %


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Components of Income (Loss), Per Share Data and Return on Equity
Periods ended June 30Three MonthsSix Months
(In millions, except per share data)2024202320242023
Components of Income (Loss)
Core income (loss)$326 $308 $681 $633 
Net investment gains (losses)(9)(25)(26)(53)
Net income (loss)$317 $283 $655 $580 
Diluted Earnings (Loss) Per Common Share
Core income (loss)$1.19 $1.13 $2.50 $2.33 
Net investment gains (losses)(0.02)(0.09)(0.10)(0.20)
Diluted earnings (loss) per share$1.17 $1.04 $2.40 $2.13 
Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic271.6 271.2 271.6 271.2 
Diluted272.6 272.0 272.6 272.1 
Return on Equity
Net income (loss) (1)
13.0 %13.0 %13.3 %13.4 %
Core income (loss) (2)
10.6 10.2 10.9 10.4 
(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.


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Selected Balance Sheet Data and Statements of Cash Flows Data
(In millions, except per share data)June 30, 2024December 31, 2023
Total investments$46,245 $46,562 
Reinsurance receivables, net of allowance for uncollectible receivables5,652 5,412 
Total assets65,194 64,711 
Insurance reserves44,594 44,196 
Claim and claim adjustment expenses23,974 23,304 
Unearned premiums7,409 6,933 
Future policy benefits13,211 13,959 
Debt2,971 3,031 
Total liabilities55,320 54,818 
Accumulated other comprehensive income (loss) (1)
(2,547)(2,672)
Total stockholders' equity9,874 9,893 
Book value per common share$36.46 $36.52 
Book value per common share excluding AOCI$45.86 $46.39 
Outstanding shares of common stock (in millions of shares)270.8 270.9 
Statutory capital and surplus - Combined Continental Casualty Companies (2)
$11,031 $10,946 
Three Months Ended June 3020242023
Net cash flows provided (used) by operating activities$616 $501 
Net cash flows provided (used) by investing activities40 (909)
Net cash flows provided (used) by financing activities(689)280 
Net cash flows provided (used) by operating, investing and financing activities$(33)$(128)
Six Months Ended June 3020242023
Net cash flows provided (used) by operating activities$1,120 $937 
Net cash flows provided (used) by investing activities(209)(858)
Net cash flows provided (used) by financing activities(878)(200)
Net cash flows provided (used) by operating, investing and financing activities$33 $(121)
(1) As of June 30, 2024 and December 31, 2023, AOCI included after-tax cumulative impacts of changes in discount rates used to measure long duration contracts of $255 million and $(359) million.
(2) Statutory capital and surplus as of June 30, 2024 is preliminary.

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Property & Casualty - Results of Operations
Periods ended June 30Three MonthsSix Months
(In millions)20242023Change20242023Change
Gross written premiums$4,072 $3,909 4 %$7,814 $7,529 4 %
Gross written premiums ex. 3rd party captives
3,203 2,986 7 6,139 5,710 8 
Net written premiums2,674 2,513 6 5,064 4,760 6 
Net earned premiums2,389 2,234 7 4,720 4,367 8 
Net investment income361 332 9 718 633 13 
Non-insurance warranty revenue404 407 811 814 
Other revenues9 7 18 14 
Total operating revenues3,163 2,980 6 6,267 5,828 8 
Insurance claims and policyholders' benefits1,530 1,406 3,033 2,755 
Amortization of deferred acquisition costs435 403 879 782 
Non-insurance warranty expense388 384 782 768 
Other insurance related expenses300 287 558 562 
Other expenses27 17 56 38 
Total claims, benefits and expenses2,680 2,497 (7)5,308 4,905 (8)
Core income (loss) before income tax483 483 959 923 
Income tax (expense) benefit on core income (loss)(103)(109)(207)(203)
Core income (loss)$380 $374 2 %$752 $720 4 %
Other Performance Metrics
Underwriting gain (loss)$124 $138 (10)%$250 $268 (7)%
Loss & LAE ratio63.8 %62.6 %(1.2)pts63.9 %62.8 %(1.1)pts
Expense ratio30.7 30.9 0.2 30.4 30.8 0.4 
Dividend ratio0.3 0.3 — 0.4 0.3 (0.1)
Combined ratio94.8 %93.8 %(1.0)pts94.7 %93.9 %(0.8)pts
Underlying combined ratio91.6 %91.1 %(0.5)pts91.4 %91.0 %(0.4)pts
Net accident year catastrophe losses incurred$82 $68 $170 $120 
Effect on loss & LAE ratio3.5 %3.1 %(0.4)pts3.6 %2.7 %(0.9)pts
Development-related items: (favorable) / unfavorable$(6)$(6)$(11)$9 
Effect on loss & LAE ratio(0.3)%(0.4)%(0.1)pts(0.3)%0.2 %0.5 pts
Rate4 %5 %(1)pts4 %5 %(1)pts
Renewal premium change5 %7 %(2)pts5 %7 %(2)pts
Retention85 %86 %(1)pts85 %86 %(1)pts
New business $595 $555 7 %$1,124 $1,058 6 %


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Specialty - Results of Operations
Periods ended June 30Three MonthsSix Months
(In millions)20242023Change20242023Change
Gross written premiums$1,728 $1,769 (2)%$3,410 $3,549 (4)%
Gross written premiums ex. 3rd party captives
984 961 2 1,864 1,847 1 
Net written premiums857 825 4 1,649 1,613 2 
Net earned premiums831 812 2 1,645 1,609 2 
Net investment income154 142 8 304 271 12 
Non-insurance warranty revenue404 407 811 814 
Other revenues(1)— — — 
Total operating revenues1,388 1,361 2 2,760 2,694 2 
Insurance claims and policyholders' benefits495 476 974 942 
Amortization of deferred acquisition costs180 168 358 333 
Non-insurance warranty expense388 384 782 768 
Other insurance related expenses96 94 177 180 
Other expenses13 12 28 26 
Total claims, benefits and expenses1,172 1,134 (3)2,319 2,249 (3)
Core income (loss) before income tax216 227 441 445 
Income tax (expense) benefit on core income (loss)(47)(50)(95)(97)
Core income (loss)$169 $177 (5)%$346 $348 (1)%
Other Performance Metrics
Underwriting gain (loss)$60 $74 (19)%$136 $154 (12)%
Loss & LAE ratio59.2 %58.3 %(0.9)pts58.9 %58.3 %(0.6)pts
Expense ratio33.2 32.4 (0.8)32.5 31.9 (0.6)
Dividend ratio0.3 0.2 (0.1)0.3 0.2 (0.1)
Combined ratio92.7 %90.9 %(1.8)pts91.7 %90.4 %(1.3)pts
Underlying combined ratio93.1 %91.2 %(1.9)pts92.2 %90.6 %(1.6)pts
Net accident year catastrophe losses incurred$— $— $— $— 
Effect on loss & LAE ratio— %— %— pts— %— %— pts
Development-related items: (favorable) / unfavorable$(3)$(2)$(8)$(2)
Effect on loss & LAE ratio(0.4)%(0.3)%0.1 pts(0.5)%(0.2)%0.3 pts
Rate— %(1)%1 pts1 %— %1 pts
Renewal premium change1 %— %1 pts2 %2 %— pts
Retention90 %89 %1 pts89 %89 %— pts
New business$118 $120 (2)%$212 $228 (7)%

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Commercial - Results of Operations
Periods ended June 30Three MonthsSix Months
(In millions)20242023Change20242023Change
Gross written premiums$1,927 $1,719 12 %$3,613 $3,161 14 %
Gross written premiums ex. 3rd party captives
1,802 1,604 12 3,484 3,044 14 
Net written premiums1,458 1,329 10 2,796 2,517 11 
Net earned premiums1,247 1,120 11 2,449 2,166 13 
Net investment income175 165 6 351 314 12 
Other revenues10 6 18 13 
Total operating revenues1,432 1,291 11 2,818 2,493 13 
Insurance claims and policyholders' benefits851 745 1,686 1,439 
Amortization of deferred acquisition costs199 175 399 344 
Other insurance related expenses158 158 296 300 
Other expenses13 10 25 16 
Total claims, benefits and expenses1,221 1,088 (12)2,406 2,099 (15)
Core income (loss) before income tax211 203 412 394 
Income tax (expense) benefit on core income (loss)(44)(44)(87)(84)
Core income (loss)$167 $159 5 %$325 $310 5 %
Other Performance Metrics
Underwriting gain (loss)$39 $42 (7)%$68 $83 (18)%
Loss & LAE ratio68.0 %66.2 %(1.8)pts68.4 %65.9 %(2.5)pts
Expense ratio28.5 29.6 1.1 28.4 29.8 1.4 
Dividend ratio0.5 0.5 — 0.5 0.5 — 
Combined ratio97.0 %96.3 %(0.7)pts97.3 %96.2 %(1.1)pts
Underlying combined ratio91.0 %91.6 %0.6 pts90.9 %91.8 %0.9 pts
Net accident year catastrophe losses incurred$76 $59 $158 $103 
Effect on loss & LAE ratio6.1 %5.2 %(0.9)pts6.4 %4.7 %(1.7)pts
Development-related items: (favorable) / unfavorable$— $(4)$— $(4)
Effect on loss & LAE ratio(0.1)%(0.5)%(0.4)pts— %(0.3)%(0.3)pts
Rate7 %8 %(1)pts7 %8 %(1)pts
Renewal premium change7 %11 %(4)pts8 %10 %(2)pts
Retention84 %85 %(1)pts84 %85 %(1)pts
New business$405 $343 18 %$772 $653 18 %

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International - Results of Operations
Periods ended June 30Three MonthsSix Months
(In millions)20242023Change20242023Change
Gross written premiums$417 $421 (1)%$791 $819 (3)%
Net written premiums359 359 — 619 630 (2)
Net earned premiums311 302 3 626 592 6 
Net investment income32 25 28 63 48 31 
Other revenues— 1 — 1 
Total operating revenues343 328 5 689 641 7 
Insurance claims and policyholders' benefits184 185 373 374 
Amortization of deferred acquisition costs56 60 122 105 
Other insurance related expenses46 35 85 82 
Other expenses1 (5)3 (4)
Total claims, benefits and expenses287 275 (4)583 557 (5)
Core income (loss) before income tax56 53 106 84 
Income tax (expense) benefit on core income (loss)(12)(15)(25)(22)
Core income (loss)$44 $38 16 %$81 $62 31 %
Other Performance Metrics
Underwriting gain (loss)$25 $22 14 %$46 $31 48 %
Loss & LAE ratio59.1 %61.0 %1.9 pts59.6 %63.1 %3.5 pts
Expense ratio32.8 31.2 (1.6)33.0 31.5 (1.5)
Dividend ratio— — — — — — 
Combined ratio91.9 %92.2 %0.3 pts92.6 %94.6 %2.0 pts
Underlying combined ratio90.9 %89.1 %(1.8)pts91.1 %89.2 %(1.9)pts
Net accident year catastrophe losses incurred$6 $9 $12 $17 
Effect on loss & LAE ratio2.0 %3.1 %1.1 pts2.0 %2.9 %0.9 pts
Development-related items: (favorable) / unfavorable$(3)$— $(3)$15 
Effect on loss & LAE ratio(1.0)%— %1.0 pts(0.5)%2.5 %3.0 pts
Rate— %4 %(4)pts— %4 %(4)pts
Renewal premium change2 %7 %(5)pts3 %7 %(4)pts
Retention80 %83 %(3)pts81 %83 %(2)pts
New business $72 $92 (22)%$140 $177 (21)%

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Life & Group - Results of Operations
Periods ended June 30Three MonthsSix Months
(In millions)2024202320242023
Net earned premiums$109 $113 $219 $228 
Net investment income239 229 470 443 
Other revenues— — — — 
Total operating revenues348 342 689 671 
Insurance claims and policyholders' benefits325 344 637 655 
Other insurance related expenses29 31 58 60 
Other expenses1 — 1 1 
Total claims, benefits and expenses355 375 696 716 
Core income (loss) before income tax(7)(33)(7)(45)
Income tax (expense) benefit on core income (loss)6 13 11 22 
Core income (loss)$(1)$(20)$4 $(23)

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Corporate & Other - Results of Operations
Periods ended June 30Three MonthsSix Months
(In millions)2024202320242023
Net earned premiums$— $— $— $— 
Net investment income18 14 39 24 
Other revenues— — — — 
Total operating revenues18 14 39 24 
Insurance claims and policyholders' benefits27 29 19 22 
Other insurance related expenses— — — 1 
Interest expense35 30 69 58 
Other expenses20 12 42 22 
Total claims, benefits and expenses82 71 130 103 
Core income (loss) before income tax(64)(57)(91)(79)
Income tax (expense) benefit on core income (loss)11 11 16 15 
Core income (loss)$(53)$(46)$(75)$(64)


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Investment Summary - Consolidated
June 30, 2024March 31, 2024December 31, 2023
(In millions)Carrying ValueNet Unrealized Gains (Losses)Carrying ValueNet Unrealized Gains (Losses)Carrying ValueNet Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds$24,372 $(1,095)$24,329 $(889)$24,268 $(748)
States, municipalities and political subdivisions:
Tax-exempt3,333(33)3,4314 3,72288 
Taxable3,696(498)3,857(442)3,670(409)
Total states, municipalities and political subdivisions7,029 (531)7,288 (438)7,392 (321)
Asset-backed:
RMBS3,115 (487)3,090 (473)3,002 (409)
CMBS1,611 (179)1,645 (185)1,631 (223)
Other ABS3,379 (243)3,345 (232)3,268 (243)
Total asset-backed8,105 (909)8,080 (890)7,901 (875)
U.S. Treasury and obligations of government-sponsored enterprises191 (2)179 (2)151 (1)
Foreign government706 (36)729 (34)713 (28)
Redeemable preferred stock— — — — — — 
Total fixed maturity securities40,403 (2,573)40,605 (2,253)40,425 (1,973)
Equities:
Common stock180 — 206 — 191 — 
Non-redeemable preferred stock489 — 485 — 492 — 
Total equities669 — 691 — 683 — 
Limited partnership investments:
Hedge funds347 — 338— 332 — 
Private equity funds2,020 — 1,936— 1,842 — 
Total limited partnership investments2,367 — 2,274 — 2,174 — 
Other invested assets73 — 79 — 80 — 
Mortgage loans986 — 1,029 — 1,035 — 
Short-term investments1,747 — 1,996 — 2,165 1 
Total investments$46,245 $(2,573)$46,674 $(2,253)$46,562 $(1,972)
Net receivable/(payable) on investment activity$(6)$(128)$36 
Effective duration (in years)6.4 6.4 6.5 
Weighted average rating (1)
AAA
RMBS - Residential mortgage-backed securities
CMBS - Commercial mortgage-backed securities
Other ABS - Other asset-backed securities
(1) Obligations of the U.S. Government, U.S. Government agencies and U.S. Government-sponsored enterprises were classified as AAA for purposes of calculating the weighted average rating.

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Investment Summary - Property & Casualty and Corporate & Other
June 30, 2024March 31, 2024December 31, 2023
(In millions)Carrying ValueNet Unrealized Gains (Losses)Carrying ValueNet Unrealized Gains (Losses)Carrying ValueNet Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds$14,311 $(779)$14,533 $(750)$14,424 $(756)
States, municipalities and political subdivisions:
Tax-exempt1,008(190)1,074(184)1,160(159)
Taxable2,133(428)2,247(407)2,076(399)
Total states, municipalities and political subdivisions3,141 (618)3,321 (591)3,236 (558)
Asset-backed:
RMBS3,113 (487)3,088 (473)3,000 (409)
CMBS1,588 (177)1,623 (182)1,601 (221)
Other ABS2,813 (140)2,766 (145)2,676 (170)
Total asset-backed7,514 (804)7,477 (800)7,277 (800)
U.S. Treasury and obligations of government-sponsored enterprises191 (2)179 (2)150 (1)
Foreign government660 (26)687 (25)685 (20)
Redeemable preferred stock— — — — — — 
Total fixed maturity securities25,817 (2,229)26,197 (2,168)25,772 (2,135)
Equities:
Common stock180 — 206 — 191 — 
Non-redeemable preferred stock82 — 85 — 82 — 
Total equities262 — 291 — 273 — 
Limited partnership investments:
Hedge funds265 — 187— 184 — 
Private equity funds1,545 — 1,071— 1,019 — 
Total limited partnership investments1,810 — 1,258 — 1,203 — 
Other invested assets73 — 79 — 80 — 
Mortgage loans796 — 838 — 842 — 
Short-term investments1,698 — 1,969 — 2,094 1 
Total investments$30,456 $(2,229)$30,632 $(2,168)$30,264 $(2,134)
Net receivable/(payable) on investment activity$(19)$(128)$33 
Effective duration (in years)4.44.54.5
Weighted average rating (1)
AAA
(1) Obligations of the U.S. Government, U.S. Government agencies and U.S. Government-sponsored enterprises were classified as AAA for purposes of calculating the weighted average rating.

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Investment Summary - Life & Group
June 30, 2024March 31, 2024December 31, 2023
(In millions)Carrying ValueNet Unrealized Gains (Losses)Carrying ValueNet Unrealized Gains (Losses)Carrying ValueNet Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds$10,061 $(316)$9,796 $(139)$9,844 $8 
States, municipalities and political subdivisions:
Tax-exempt2,3251572,357188 2,562247
Taxable1,563(70)1,610(35)1,594(10)
Total states, municipalities and political subdivisions3,888 87 3,967 153 4,156 237 
Asset-backed:
RMBS2 — 2 — 2 — 
CMBS23 (2)22 (3)30 (2)
Other ABS566 (103)579 (87)592 (73)
Total asset-backed591 (105)603 (90)624 (75)
U.S. Treasury and obligations of government-sponsored enterprises— — — — 1 — 
Foreign government46 (10)42 (9)28 (8)
Redeemable preferred stock— — — — — — 
Total fixed maturity securities14,586 (344)14,408 (85)14,653 162 
Equities:
Common stock— — — — — — 
Non-redeemable preferred stock407 — 400 — 410 — 
Total equities407 — 400 — 410 — 
Limited partnership investments:
Hedge funds82 — 151— 148 — 
Private equity funds475 — 865— 823 — 
Total limited partnership investments557 — 1,016 — 971 — 
Other invested assets— — — — — — 
Mortgage loans190 — 191 — 193 — 
Short-term investments49 — 27 — 71 — 
Total investments$15,789 $(344)$16,042 $(85)$16,298 $162 
Net receivable/(payable) on investment activity$13 $— $3 
Effective duration (in years)9.910.010.2
Weighted average rating (1)
A-A-A-
(1) Obligations of the U.S. Government, U.S. Government agencies and U.S. Government-sponsored enterprises were classified as AAA for purposes of calculating the weighted average rating.

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Investments - Fixed Maturity Securities by Credit Rating
June 30, 2024U.S. Government, Government agencies and Government-sponsored enterprisesAAAAAABBBNon-investment gradeTotal
(In millions)Fair ValueNet Unrealized Gains (Losses)Fair ValueNet Unrealized Gains (Losses)Fair ValueNet Unrealized Gains (Losses)Fair ValueNet Unrealized Gains (Losses)Fair ValueNet Unrealized Gains (Losses)Fair ValueNet Unrealized Gains (Losses)Fair ValueNet Unrealized Gains (Losses)
Corporate and other bonds$— $— $27 $(3)$723 $(34)$7,403 $(281)$14,561 $(715)$1,658 $(62)$24,372 $(1,095)
States, municipalities and political subdivisions— — 1,136 (59)4,351 (369)1,264 (51)259 (47)19 (5)7,029 (531)
Asset-backed:
RMBS2,650 (372)447 (118)8 — 1 — — — 9 3 3,115 (487)
CMBS— — 617 (23)596 (78)177 (25)164 (27)57 (26)1,611 (179)
Other ABS— — 453 (18)268 (62)1,243 (62)1,245 (86)170 (15)3,379 (243)
Total asset-backed2,650 (372)1,517 (159)872 (140)1,421 (87)1,409 (113)236 (38)8,105 (909)
U.S. Treasury and obligations of government-sponsored enterprises191 (2)— — — — — — — — — — 191 (2)
Foreign government— — 206 (4)377 (16)38 (7)85 (9)— — 706 (36)
Redeemable preferred stock— — — — — — — — — — — — — — 
Total fixed maturity securities$2,841 $(374)$2,886 $(225)$6,323 $(559)$10,126 $(426)$16,314 $(884)$1,913 $(105)$40,403 $(2,573)
Percentage of total fixed maturity securities7 %7 %16 %25 %40 %5 %100 %

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Components of Net Investment Income
Periods ended June 30Consolidated
Three MonthsSix Months
(In millions)2024202320242023
Taxable fixed income securities$484 $444 $956 $874 
Tax-exempt fixed income securities36 46 74 95 
Total fixed income securities 520 490 1,030 969 
Common stock4131816
Limited partnerships - hedge funds 107 2221
Limited partnerships - private equity funds 644810659
Total limited partnership and common stock investments78 68 146 96 
Other, net of investment expense20 17 51 35 
Net investment income$618 $575 $1,227 $1,100 
Effective income yield for fixed income securities portfolio4.8 %4.6 %4.8 %4.6 %
Limited partnership and common stock return3.1 3.1 6.1 4.5 
Property & Casualty and Corporate & Other
Periods ended June 30
Three MonthsSix Months
(In millions)2024202320242023
Taxable fixed income securities$301 $272 $592 $533 
Tax-exempt fixed income securities9 11 19 22 
Total fixed income securities 310 283 611 555 
Common stock4131816
Limited partnerships - hedge funds53 1211
Limited partnerships - private equity funds3627 5933
Total limited partnership and common stock investments45 43 89 60 
Other, net of investment expense24 20 57 42 
Net investment income$379 $346 $757 $657 
Effective income yield for fixed income securities portfolio4.4 %4.2 %4.3 %4.1 %
Periods ended June 30Life & Group
Three MonthsSix Months
(In millions)2024202320242023
Taxable fixed income securities$183 $172 $364 $341 
Tax-exempt fixed income securities27 35 55 73 
Total fixed income securities 210 207 419 414 
Common stock— — — — 
Limited partnerships - hedge funds54 1010 
Limited partnerships - private equity funds28214726
Total limited partnership and common stock investments33 25 57 36 
Other, net of investment expense(4)(3)(6)(7)
Net investment income$239 $229 $470 $443 
Effective income yield for fixed income securities portfolio5.6 %5.5 %5.6 %5.5 %

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Net Investment Gains (Losses)
Periods ended June 30Consolidated
Three MonthsSix Months
(In millions)2024202320242023
Fixed maturity securities:
Corporate and other bonds$(4)$(12)$(21)$(35)
States, municipalities and political subdivisions(2)(3)(2)7 
Asset-backed(6)(12)(21)(21)
Total fixed maturity securities(12)(27)(44)(49)
Non-redeemable preferred stock1 3 12 (11)
Derivatives, short-term and other 1 (2)— (1)
Mortgage loans — (6)— (6)
Net investment gains (losses)(10)(32)(32)(67)
Income tax benefit (expense) on net investment gains (losses)1 7 6 14 
Net investment gains (losses), after tax$(9)$(25)$(26)$(53)

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Claim & Claim Adjustment Expense Reserve Rollforward
Three months ended June 30, 2024
(In millions)

Specialty
Commercial		InternationalP&C OperationsLife & GroupCorporate & Other Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross$7,221 $10,332 $2,745 $20,298 $663 $2,627 $23,588 
Ceded1,319 1,117 446 2,882 92 2,267 5,241 
Net5,902 9,215 2,299 17,416 571 360 18,347 
Net incurred claim & claim adjustment expenses492 847 184 1,523 9 40 1,572 
Net claim & claim adjustment expense payments(482)(629)(135)(1,246)(11)(29)(1,286)
Foreign currency translation adjustment and other— — (8)(8)(8)(1)(17)
Claim & claim adjustment expense reserves, end of period
Net5,912 9,433 2,340 17,685 561 370 18,616 
Ceded1,407 1,184 443 3,034 90 2,234 5,358 
Gross$7,319 $10,617 $2,783 $20,719 $651 $2,604 $23,974 
Six months ended June 30, 2024
(In millions)

Specialty
Commercial		InternationalP&C OperationsLife & GroupCorporate & Other Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross$7,131 $10,103 $2,709 $19,943 $675 $2,686 $23,304 
Ceded1,215 1,082 433 2,730 93 2,318 5,141 
Net5,916 9,021 2,276 17,213 582 368 18,163 
Net incurred claim & claim adjustment expenses969 1,674 373 3,016 18 44 3,078 
Net claim & claim adjustment expense payments(972)(1,263)(269)(2,504)(22)(41)(2,567)
Foreign currency translation adjustment and other(1)1 (40)(40)(17)(1)(58)
Claim & claim adjustment expense reserves, end of period
Net5,912 9,433 2,340 17,685 561 370 18,616 
Ceded1,407 1,184 443 3,034 90 2,234 5,358 
Gross$7,319 $10,617 $2,783 $20,719 $651 $2,604 $23,974 



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Life & Group Policyholder Reserves
Three months ended June 30, 2024 (In millions)
Claim and claim adjustment expensesFuture policy benefitsTotal
Beginning of Period$571 $13,513 $14,084 
Incurred claims and policyholders' benefits (1)
9315 324 
Benefit and expense payments(11)(271)(282)
Change in discount rate assumptions and other (AOCI)(8)(346)(354)
End of Period$561 $13,211 13,772 
Six months ended June 30, 2024 (In millions)
Claim and claim adjustment expensesFuture policy benefitsTotal
Beginning of Period$582 $13,959 $14,541 
Incurred claims and policyholders' benefits (1)
18 621 639 
Benefit and expense payments(22)(592)(614)
Change in discount rate assumptions and other (AOCI)(17)(777)(794)
End of Period$561 $13,211 $13,772 
(1) Incurred claims and policyholders' benefits above does not agree to Net incurred claims and benefits as reflected in Note J to the Condensed Consolidated Financial Statements included under Part I, Item 1 of the Quarterly Report on Form 10-Q due to the timing of benefit and expense cash flows in determining Future Policy Benefit reserves, along with the allowable expenses in the reserve.


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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 includes the individual and group run-off long-term care businesses as well as structured settlement obligations not funded by annuities related to certain property and casualty claimants.
•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, asbestos and environmental pollution (A&EP), a legacy portfolio of excess workers' compensation (EWC) policies and certain legacy mass tort reserves.
•Management uses the core income (loss) financial measure to monitor the Company’s operations for the Specialty, Commercial and International segments. Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses. 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 and management believes some investors may find this measure useful to evaluate the Company's primary operations. Please refer to Note P to the Consolidated Financial Statements within the December 31, 2023 Form 10-K for further discussion regarding how the Company manages its business.
•This financial supplement may also reference or contain financial measures utilized to monitor the Company's investment portfolio that are not in accordance with GAAP. 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.
•For reconciliations of non-GAAP measures to the most comparable GAAP measures and other information, please refer herein and/or to CNA's filings with the Securities and Exchange Commission, available at www.cna.com.
•In evaluating the results of the Specialty, Commercial and International segments, management uses the loss ratio, the underlying loss ratio, the expense ratio, the dividend ratio, the combined ratio and the underlying 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 underlying loss ratio excludes the impact of catastrophe losses and development-related items from the loss ratio. Development-related items represents net prior year loss reserve and premium development, and includes the effects of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts. 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. The underlying combined ratio is the sum of the underlying loss ratio, the expense ratio and the dividend ratio. In addition, management also utilizes renewal premium change, rate, retention and new business in evaluating operating trends. Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes. Rate represents the average change in price on policies that renew excluding exposure change. Exposure represents the measure of risk used in the pricing of the insurance product. The change in exposure represents the change in premium dollars on policies that renew as a result of the change in risk of the policy. Retention represents the percentage of premium dollars renewed, excluding rate and exposure changes, 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.

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•Management uses underwriting gain (loss), calculated using GAAP financial results, to monitor insurance operations of our Specialty, Commercial and International segments. Underwriting gain (loss) is pretax and 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.
•Gross written premiums ex. 3rd party captives represents gross written premiums excluding business which is ceded to third party captives, including business related to large warranty programs.
•Statutory capital and surplus represents the excess of an insurance company's admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices.
•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


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