CNA Financial Corporation

Supplemental Financial Information

June 30, 2009

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.

CNA Financial Corporation (CNAF)
Table of Contents
June 30, 2009

	Page
Definitions and Presentation		i
Statements of Operations		1
Components of Income (Loss) Attributable to CNAF Common Stockholders, Per Share Data and Return on Equity		2
Selected Balance Sheets Data and Statements of Cash Flows Data		3
Claim & Claim Adjustment Expense Reserve Rollforward		4
Investments by Segment Aggregation		5
Mortgage and Asset-Backed Holdings		6-9
Property & Casualty Results of Operations (Three Months Ended)		10
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Three Months Ended)		11
Property & Casualty Results of Operations (Six Months Ended)		12
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Six Months Ended)		13
Components of Pretax Net Investment Income		14
Statutory Data — Preliminary		15
Property & Casualty Operations Loss and LAE Ratio Analysis		16

CNA Financial Corporation

Definitions and Presentation

• P&C Operations includes Standard Lines and Specialty Lines.

• Life & Group Non-Core segment primarily includes the results of the life and group lines of business that are in run-off.

• Corporate & Other Non-Core segment primarily includes certain corporate expenses including interest on corporate debt and the results of certain property and casualty business primarily in run-off, including CNA Re. This segment also includes the results related to the centralized adjusting and settlement of asbestos and environmental pollution claims (A&E).

• Property and Casualty Companies includes Standard Lines, Specialty Lines and P&C business written in the Life & Group Non-Core and Corporate & Other Non-Core segments.

• Management utilizes the net operating income financial measure to monitor the Company’s operations. Please refer to Note N of the Consolidated Financial Statements within the 2008 Form 10-K for further discussion of this measure.

• In evaluating the results of Standard Lines and Specialty Lines, management utilizes the combined ratio, the loss ratio, the expense ratio, and the dividend ratio. These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). 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.

• Limited partnerships (LPs) are a relatively small portion of CNA’s overall investment portfolio. The majority of our limited partnership investments employ strategies that generate returns through investing in securities that are marketable while engaging in various management techniques primarily in public fixed income and equity markets. The risks associated with limited partnership investments may include losses due to leveraging, short-selling, derivatives or other speculative investment practices. The use of leverage increases the level of returns and volatility generated by the underlying investment strategies.

• Certain immaterial differences are due to rounding.

• N/M = Not Meaningful

i

CNA FINANCIAL CORPORATION
Financial Supplement

Statements of Operations

							Fav /									Fav /
PERIODS ENDED JUNE 30	Three Months						(Unfav)			Six Months						(Unfav)
(In millions)	2009			2008			% Change			2009			2008			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,656		$	1,774			(7	)%	$	3,328		$	3,587			(7	)%
Net investment income		675			576			17			1,095			1,010			8
Net realized investment losses, net of participating policyholders’ interests:
Other-than-temporary impairment (OTTI) losses		(484	)		(170	)		(185	)		(1,098	)		(256	)		N/M
Portion of OTTI losses recognized in Other comprehensive income		89			—			N/M			89			—			N/M
Net impairment losses recognized in earnings		(395	)		(170	)		(132	)		(1,009	)		(256	)		N/M
Other net realized investment gains		98			59			66			180			94			91
Net realized investment losses, net of participating policyholders’ interests		(297	)		(111	)		(168	)		(829	)		(162	)		N/M
Other revenues		62			82			(24	)		140			168			(17	)
Total revenues		2,096			2,321			(10	)		3,734			4,603			(19	)
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,294			1,472			12			2,636			2,861			8
Amortization of deferred acquisition costs		349			360			3			698			728			4
Other operating expenses		291			203			(43	)		542			430			(26	)
Interest		30			33			9			61			67			9
Total claims, benefits and expenses		1,964			2,068			5			3,937			4,086			4
Income (loss) from continuing operations before income tax		132			253			(48	)		(203	)		517			(139	)
Income tax (expense) benefit		(12	)		(62	)		81			138			(126	)		N/M
Income (loss) from continuing operations		120			191			(37	)		(65	)		391			(117	)
Income (loss) from discontinued operations, net of income tax (expense) benefit of $0, $0, $0 and $0		(1	)		2			(150	)		(1	)		1			(200	)
Net income (loss)		119			193			(38	)		(66	)		392			(117	)
Net income attributable to noncontrolling interests		(14	)		(12	)		(17	)		(24	)		(24	)		—
Net income (loss) attributable to CNAF	$	105		$	181			(42	)%	$	(90	)	$	368			(124	)%

1

CNA FINANCIAL CORPORATION
Financial Supplement

Components of Income (Loss) Attributable to CNAF Common Stockholders, Per Share Data and Return on Equity

PERIODS ENDED JUNE 30	Three Months						Six Months
(In millions, except per share data)	2009			2008			2009			2008
COMPONENTS OF INCOME (LOSS) ATTRIBUTABLE TO CNAF COMMON STOCKHOLDERS
Net operating income from continuing operations attributable to CNAF	$	305		$	250		$	454		$	471
Less: 2008 Senior Preferred dividend		(32	)		—			(63	)		—
Net operating income from continuing operations attributable to CNAF common stockholders		273			250			391			471
Net realized investment losses attributable to CNAF common stockholders		(199	)		(71	)		(543	)		(104	)
Income (loss) from continuing operations attributable to CNAF common stockholders		74			179			(152	)		367
Income (loss) from discontinued operations attributable to CNAF common stockholders		(1	)		2			(1	)		1
Income (loss) attributable to CNAF common stockholders	$	73		$	181		$	(153	)	$	368
BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE
Net operating income from continuing operations attributable to CNAF	$	1.14		$	0.93		$	1.68		$	1.75
Less: 2008 Senior Preferred dividend		(0.12	)		—			(0.23	)		—
Net operating income from continuing operations attributable to CNAF common stockholders		1.02			0.93			1.45			1.75
Net realized investment losses attributable to CNAF common stockholders		(0.74	)		(0.27	)		(2.01	)		(0.39	)
Income (loss) from continuing operations attributable to CNAF common stockholders		0.28			0.66			(0.56	)		1.36
Income (loss) from discontinued operations attributable to CNAF common stockholders		(0.01	)		0.01			(0.01	)		—
Basic and diluted earnings (loss) per share attributable to CNAF common stockholders	$	0.27		$	0.67		$	(0.57	)	$	1.36
WEIGHTED AVERAGE OUTSTANDING COMMON STOCK AND COMMON STOCK EQUIVALENTS
Basic		269.0			269.0			269.0			269.9
Diluted		269.0			269.1			269.0			270.0
RETURN ON EQUITY
Net income (loss) attributable to CNAF (1)		5.3	%		7.7	%		(2.3	)%		7.5	%
Net operating income from continuing operations attributable to CNAF (2)		11.4			9.8			8.4			9.3

(1)	Annualized net income (loss) attributable to CNAF divided by the average CNAF 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 net operating income from continuing operations attributable to CNAF divided by the average CNAF 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

CNA FINANCIAL CORPORATION
Financial Supplement

Selected Balance Sheets Data and Statements of Cash Flows Data

(In millions, except per share data)	June 30, 2009			December 31, 2008
Total assets	$	53,588		$	51,688
Insurance reserves		38,571			38,771
Debt		2,058			2,058
Total liabilities		44,477			44,391
Preferred stock		1,250			1,250
Accumulated other comprehensive loss		(2,127	)		(3,924	)
Noncontrolling interests		455			420
Total CNAF stockholders’ equity		8,656			6,877
Book value per common share	$	27.53		$	20.92
Book value per common share excluding AOCI	$	35.44		$	35.50
Outstanding shares of common stock (in millions of shares)		269.0			269.0

THREE MONTHS ENDED
JUNE 30
(In millions)	2009			2008
Net cash flows provided by operating activities (1)	$	100		$	509
Net cash flows used by investing activities		(70	)		(242	)
Net cash flows used by financing activities		(33	)		(321	)
Net cash flows from operating, investing and financing activities	$	(3	)	$	(54	)

SIX MONTHS ENDED
JUNE 30
(In millions)	2009			2008
Net cash flows provided by operating activities (1)	$	287		$	812
Net cash flows used by investing activities		(220	)		(231	)
Net cash flows used by financing activities		(59	)		(594	)
Net cash flows from operating, investing and financing activities	$	8		$	(13	)

(1) Operating cash flows for the three and six months ended June 30, 2009 include $(3) million and $(12) million related to discontinued operations. Operating cash flows for the three and six months ended June 30, 2008 include $(2) million and $2 million related to discontinued operations.

3

CNA FINANCIAL CORPORATION
Financial Supplement

Claim & Claim Adjustment Expense Reserve Rollforward

THREE MONTHS ENDED JUNE 30, 2009

										Life & Group			Corporate &
(In millions)	Standard Lines			Specialty Lines			P&C Operations			Non-Core			Other Non-Core			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	11,893		$	8,290		$	20,183		$	2,857		$	4,203		$	27,243
Ceded		2,122			1,420			3,542			941			1,628			6,111
Net		9,771			6,870			16,641			1,916			2,575			21,132
Net incurred claim & claim adjustment expenses		480			522			1,002			147			24			1,173
Net claim & claim adjustment expense payments		(596	)		(389	)		(985	)		(110	)		(121	)		(1,216	)
Foreign currency translation adjustment		—			85			85			—			3			88
Claim & claim adjustment expense reserves, end of period
Net		9,655			7,088			16,743			1,953			2,481			21,177
Ceded		2,050			1,374			3,424			909			1,590			5,923
Gross	$	11,705		$	8,462		$	20,167		$	2,862		$	4,071		$	27,100
SIX MONTHS ENDED JUNE 30, 2009
										Life & Group			Corporate &
(In millions)	Standard Lines			Specialty Lines			P&C Operations			Non-Core			Other Non-Core			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	12,048		$	8,282		$	20,330		$	2,862		$	4,401		$	27,593
Ceded		2,178			1,439			3,617			957			1,714			6,288
Net		9,870			6,843			16,713			1,905			2,687			21,305
Net incurred claim & claim adjustment expenses		989			1,022			2,011			281			46			2,338
Net claim & claim adjustment expense payments		(1,204	)		(819	)		(2,023	)		(233	)		(254	)		(2,510	)
Foreign currency translation adjustment		—			42			42			—			2			44
Claim & claim adjustment expense reserves, end of period
Net		9,655			7,088			16,743			1,953			2,481			21,177
Ceded		2,050			1,374			3,424			909			1,590			5,923
Gross	$	11,705		$	8,462		$	20,167		$	2,862		$	4,071		$	27,100

4

CNA FINANCIAL CORPORATION
Financial Supplement

Investments by Segment Aggregation

	June 30, 2009					March 31, 2009					December 31, 2008
(In millions)	Book Value			Fair Value		Book Value			Fair Value		Book Value		Fair Value
Property & Casualty and Corporate & Other Non-Core:
Fixed maturities — taxable	$	18,564		$	16,844	$	17,112		$	14,341	$	18,987	$	15,880
Fixed maturities — tax-exempt		5,757			5,416		6,841			6,407		6,341		5,638
Equities		329			460		378			462		466		515
Short-term investments		4,307			4,307		4,471			4,471		3,070		3,078
Limited partnership investments		1,768			1,768		1,655			1,655		1,667		1,667
Other		4			8		3			11		3		27
Total investments	$	30,729		$	28,803	$	30,460		$	27,347	$	30,534	$	26,805
Net receivable/(payable)	$	(99	)			$	96				$	311
Securities lending collateral		—					(41	)				—
Life & Group Non-Core:
Fixed maturities — taxable	$	6,973		$	6,558	$	6,809		$	5,649	$	6,611	$	5,592
Fixed maturities — tax-exempt		2,532			2,222		2,427			2,064		2,216		1,777
Equities		338			288		405			264		550		356
Short-term investments		174			174		112			112		457		456
Limited partnership investments		12			12		12			12		16		16
Other		—			—		1			—		1		1
Total investments	$	10,029		$	9,254	$	9,766		$	8,101	$	9,851	$	8,198
Net receivable/(payable)	$	(12	)			$	(9	)			$	79
Securities lending collateral		—					—					—
Total investments	$	40,758		$	38,057	$	40,226		$	35,448	$	40,385	$	35,003
Total net receivable/(payable)	$	(111	)			$	87				$	390
Total securities lending collateral		—					(41	)				—

The information above related to net receivable/(payable) and securities lending collateral is provided to facilitate an analysis of significant changes in book value. When compared to the net receivable/(payable) per the Consolidated Balance Sheets, the amounts above exclude $23 million, $0 million, and $0 million as of June 30, 2009, March 31, 2009, and December 31, 2008 where the net receivable/(payable) balance does not relate to change in book value.

5

CNA FINANCIAL CORPORATION
Financial Supplement

Mortgage and Asset-Backed Holdings

As of June 30, 2009

(In millions)

Invested Assets Fair Value By Segment

	P&C and
	Corporate & Other				Life & Group
	Non-Core		%		Non-Core		%		Total		%
RMBS	$	5,816		18.9	$	448		4.8	$	6,264		16.5
CMBS		556		1.8		96		1.1		652		1.7
Other ABS		381		1.3		49		0.5		430		1.1
Total Mortgage and Asset-Backed Holdings		6,753		22.0		593		6.4		7,346		19.3
Other taxable fixed maturities		10,091		38.5		5,965		64.5		16,056		42.2
Tax exempt fixed maturities		5,416		18.7		2,222		24.0		7,638		20.1
All other		6,543		20.8		474		5.1		7,017		18.4
Total investments	$	28,803		100.0	$	9,254		100.0	$	38,057		100.0
Sub-prime (Included in RMBS Above)	$	707		2.3	$	8		0.1	$	715		1.9
Alt-A (Included in RMBS Above)	$	797		2.6	$	41		0.4	$	838		2.2

Invested Assets Amortized Cost By Segment

	P&C and
	Corporate & Other				Life & Group
	Non-Core		%		Non-Core		%		Total		%
RMBS	$	6,906		22.5	$	551		5.5	$	7,457		18.3
CMBS		721		2.4		180		1.8		901		2.2
Other ABS		430		1.4		46		0.5		476		1.2
Total Mortgage and Asset-Backed Holdings		8,057		26.3		777		7.8		8,834		21.7
Other taxable fixed maturities		10,507		34.2		6,196		61.8		16,703		41.0
Tax exempt fixed maturities		5,757		18.7		2,532		25.2		8,289		20.3
All other		6,408		20.8		524		5.2		6,932		17.0
Total investments	$	30,729		100.0	$	10,029		100.0	$	40,758		100.0
Sub-prime (Included in RMBS Above)	$	1,100		3.6	$	9		0.1	$	1,109		2.7
Alt-A (Included in RMBS Above)	$	978		3.2	$	77		0.8	$	1,055		2.6

RMBS/CMBS/Other ABS Distribution

																	% of Mortgage & Asset-				% of Total
	RMBS				CMBS				Other ABS				Total				Backed Holdings				Investments
			Amortized				Amortized				Amortized				Amortized				Amortized				Amortized
	Fair Value		Cost		Fair Value		Cost		Fair Value		Cost		Fair Value		Cost		Fair Value		Cost		Fair Value		Cost
U.S. Government Agencies	$	2,089	$	2,072	$	—	$	—	$	—	$	—	$	2,089	$	2,072		28.4		23.5		5.5		5.1
AAA		2,864		3,589		511		647		328		352		3,703		4,588		50.4		51.9		9.7		11.3
AA		244		369		72		125		6		10		322		504		4.4		5.7		0.9		1.2
A		203		312		50		100		9		27		262		439		3.6		5.0		0.7		1.1
BBB		255		333		7		13		87		87		349		433		4.8		4.9		0.9		1.1
<BBB & Equity Tranches		609		782		12		16		—		—		621		798		8.4		9.0		1.6		1.9
Total RMBS/CMBS/Other ABS	$	6,264	$	7,457	$	652	$	901	$	430	$	476	$	7,346	$	8,834		100.0		100.0		19.3		21.7

(1) The exposure to sub-prime residential mortgage (sub-prime) collateral and Alternative A residential mortgages that have lower than normal standards of loan documentation (Alt-A) collateral is measured by the original deal structure.

RMBS	—	Residential mortgage-backed securities
CMBS	—	Commercial mortgage-backed securities
Other ABS	—	Other asset-backed securities

6

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of June 30, 2009
(In millions)

RMBS Sub-Prime Fair Value Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—
2008		—		—		—		—		—		—		—		—		—		—		—		—
2007		80		17.1		—		—		—		—		—		—		2		4.2		82		11.5
2006		303		64.9		45		42.1		—		—		53		88.3		26		54.2		427		59.7
2005		70		15.0		35		32.7		—		—		2		3.3		6		12.5		113		15.8
2004		9		1.9		13		12.1		19		57.6		1		1.7		4		8.3		46		6.4
2003 & prior		5		1.1		14		13.1		14		42.4		4		6.7		10		20.8		47		6.6
Total sub-prime	$	467		100.0	$	107		100.0	$	33		100.0	$	60		100.0	$	48		100.0	$	715		100.0

RMBS Sub-Prime Amortized Cost Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—
2008		—		—		—		—		—		—		—		—		—		—		—		—
2007		126		18.2		—		—		—		—		—		—		2		2.8		128		11.6
2006		461		66.6		72		41.1		—		—		66		89.2		31		43.7		630		56.8
2005		87		12.6		61		34.9		—		—		2		2.7		11		15.5		161		14.5
2004		12		1.7		19		10.9		68		70.1		2		2.7		8		11.3		109		9.8
2003 & prior		6		0.9		23		13.1		29		29.9		4		5.4		19		26.7		81		7.3
Total sub-prime	$	692		100.0	$	175		100.0	$	97		100.0	$	74		100.0	$	71		100.0	$	1,109		100.0

RMBS Alt-A Fair Value Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—
2008		—		—		—		—		—		—		—		—		—		—		—		—
2007		13		2.4		23		31.5		—		—		30		100.0		76		41.3		142		16.9
2006		5		0.9		10		13.7		—		—		—		—		87		47.3		102		12.2
2005		65		11.8		19		26.0		—		—		—		—		21		11.4		105		12.5
2004		355		64.4		21		28.8		—		—		—		—		—		—		376		44.9
2003 & prior		113		20.5		—		—		—		—		—		—		—		—		113		13.5
Total Alt-A	$	551		100.0	$	73		100.0	$	—		—	$	30		100.0	$	184		100.0	$	838		100.0

RMBS Alt-A Amortized Cost Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—
2008		—		—		—		—		—		—		—		—		—		—		—		—
2007		15		2.1		40		35.7		—		—		30		100.0		85		40.3		170		16.1
2006		6		0.9		17		15.2		—		—		—		—		103		48.8		126		11.9
2005		108		15.4		31		27.7		—		—		—		—		23		10.9		162		15.4
2004		446		63.5		24		21.4		—		—		—		—		—		—		470		44.6
2003 & prior		127		18.1		—		—		—		—		—		—		—		—		127		12.0
Total Alt-A	$	702		100.0	$	112		100.0	$	—		—	$	30		100.0	$	211		100.0	$	1,055		100.0

7

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of June 30, 2009
(In millions)

RMBS Distribution By Collateral Type & Quality

	Fixed Coupon -				Fixed Coupon -
	30 Year				15/20 Year				ARM				Home Equity				Other				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
U.S. Government Agencies	$	1,679	$	1,673	$	310	$	303	$	58	$	56	$	—	$	—	$	42	$	40	$	2,089	$	2,072
AAA		1,763		2,237		205		244		411		567		135		169		350		372		2,864		3,589
AA		128		192		—		—		42		64		74		113		—		—		244		369
A		119		193		30		35		44		69		9		13		1		2		203		312
BBB		144		187		4		6		58		90		49		50		—		—		255		333
<BBB & Equity Tranches		359		443		33		34		181		260		31		38		5		7		609		782
Total RMBS	$	4,192	$	4,925	$	582	$	622	$	794	$	1,106	$	298	$	383	$	398	$	421	$	6,264	$	7,457
Included in Total RMBS:
Pass-Thru	$	725	$	722	$	85	$	85	$	57	$	56	$	—	$	—	$	43	$	41	$	910	$	904
Structured		3,467		4,203		497		537		737		1,050		298		383		355		380		5,354		6,553
Total RMBS	$	4,192	$	4,925	$	582	$	622	$	794	$	1,106	$	298	$	383	$	398	$	421	$	6,264	$	7,457
Included in Total RMBS:
Sub-prime	$	413	$	718	$	—	$	—	$	—	$	—	$	298	$	383	$	4	$	8	$	715	$	1,109
Alt-A		641		807		48		51		147		195		—		—		2		2		838		1,055
Prime		3,138		3,400		534		571		647		911		—		—		392		411		4,711		5,293
Total RMBS	$	4,192	$	4,925	$	582	$	622	$	794	$	1,106	$	298	$	383	$	398	$	421	$	6,264	$	7,457

CMBS Distribution By Deal Coupon Type & Quality

	Fixed Rate				Adjustable/Floating Rate				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost
AAA	$	276	$	310	$	235	$	337	$	511	$	647
AA		43		76		29		49		72		125
A		39		83		11		17		50		100
BBB		—		—		7		13		7		13
<BBB & Equity Tranches		5		9		7		7		12		16
Total CMBS	$	363	$	478	$	289	$	423	$	652	$	901
Included in Total CMBS:
Pass-Thru	$	—	$	—	$	—	$	—	$	—	$	—
Structured		363		478		289		423		652		901
Total CMBS	$	363	$	478	$	289	$	423	$	652	$	901

ARM  —	Adjustable rate mortgages
MBS  —	Mortgage-backed securities

8

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of June 30, 2009
(In millions)

Other ABS Distribution By Collateral Type & Quality

	Auto Loans				Student Loans				Other				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost
AAA	$	89	$	88	$	115	$	148	$	124	$	116	$	328	$	352
AA		—		—		—		—		6		10		6		10
A		6		6		—		—		3		21		9		27
BBB		86		87		—		—		1		—		87		87
<BBB & Equity Tranches		—		—		—		—		—		—		—		—
Total Other ABS	$	181	$	181	$	115	$	148	$	134	$	147	$	430	$	476
Included in Total Other ABS:
Pass-Thru	$	86	$	87	$	—	$	—	$	—	$	—	$	86	$	87
Structured		95		94		115		148		134		147		344		389
Total Other ABS	$	181	$	181	$	115	$	148	$	134	$	147	$	430	$	476

9

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

THREE MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
JUNE 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2009			2008			% Change			2009			2008			% Change			2009			2008			% Change
Gross written premiums	$	859		$	944			(9	)%	$	1,224		$	1,281			(4	)%	$	2,083		$	2,225			(6	)%
Net written premiums		761			848			(10	)		834			860			(3	)		1,595			1,708			(7	)
Net earned premiums		671			768			(13	)		834			859			(3	)		1,505			1,627			(7	)
Net investment income		252			199			27			188			155			21			440			354			24
Other revenues		16			15			7			48			54			(11	)		64			69			(7	)
Total operating revenues		939			982			(4	)		1,070			1,068			0			2,009			2,050			(2	)
Claims, benefits and expenses:
Net incurred claims and benefits		478			566			16			522			559			7			1,000			1,125			11
Policyholders’ dividends		(1	)		3			133			3			1			(200	)		2			4			50
Amortization of deferred acquisition costs		163			175			7			182			184			1			345			359			4
Other insurance related expenses		68			48			(42	)		63			53			(19	)		131			101			(30	)
Other expenses		22			12			(83	)		40			41			2			62			53			(17	)
Total claims, benefits and expenses		730			804			9			810			838			3			1,540			1,642			6
Operating income from continuing operations before income tax		209			178			17			260			230			13			469			408			15
Income tax expense on operating income		(64	)		(54	)		(19	)		(73	)		(74	)		1			(137	)		(128	)		(7	)
Net operating income attributable to noncontrolling interests		—			—			N/M			(14	)		(11	)		(27	)		(14	)		(11	)		(27	)
Net operating income from continuing operations attributable to CNAF		145			124			17			173			145			19			318			269			18
Net realized investment losses, net of participating policyholders’ interests		(170	)		(60	)		(183	)		(96	)		(29	)		N/M			(266	)		(89	)		(199	)
Income tax benefit on realized investment losses		60			21			186			28			10			180			88			31			184
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			N/M			—			—			N/M			—			—			N/M
Net realized investment losses attributable to CNAF		(110	)		(39	)		(182	)		(68	)		(19	)		N/M			(178	)		(58	)		N/M
Net income (loss) from continuing operations attributable to CNAF	$	35		$	85			(59	)%	$	105		$	126			(17	)%	$	140		$	211			(34	)%
FINANCIAL RATIOS
Loss & LAE		71.3	%		73.7	%					62.5	%		65.2	%					66.4	%		69.2	%
Acquisition expense		16.1			14.6						18.1			17.2						17.2			16.0
Underwriting expense		18.3			14.4						11.1			10.4						14.3			12.2
Expense		34.4			29.0						29.2			27.6						31.5			28.2
Dividend		(0.2	)		0.5						0.4			0.1						0.2			0.3
Combined ratio		105.5	%		103.2	%					92.1	%		92.9	%					98.1	%		97.7	%
RATIO IMPACTS
Impact of catastrophes
Pretax net accident year catastrophe losses incurred	$	40		$	45					$	3		$	2					$	43		$	47
Impact on loss & LAE ratio		6.0	%		5.9	%					0.4	%		0.2	%					2.9	%		2.9	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & ALAE reserve development (1)	$	(80	)	$	(15	)				$	(40	)	$	1					$	(120	)	$	(14	)
Prior year premium development		59			(8	)					(1	)		1						58			(7	)
Other (2)		6			8						(1	)		—						5			8
Total development & other	$	(15	)	$	(15	)				$	(42	)	$	2					$	(57	)	$	(13	)
Impact of development & other on loss & LAE ratio		(4.4	)%		(1.9	)%					(4.9	)%		0.2	%					(4.9	)%		(0.8	)%

(1)	In 2009, Standard Lines includes $33 million of favorable loss and LAE reserve development and Specialty Lines includes $3 million of unfavorable loss and LAE reserve development related to catastrophes in accident years 2005, 2007 and 2008. In 2008, Standard Lines includes $29 million of favorable loss & LAE reserve development related to the 2005 hurricanes.
(2)	Other includes the impacts of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.

10

CNA FINANCIAL CORPORATION
Financial Supplement
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations

THREE MONTHS ENDED	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
JUNE 30													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2009			2008			2009			2008			% Change			2009			2008			% Change			2009			2008			% Change
Net earned premiums	$	1,505		$	1,627		$	148		$	149			(1	)%	$	3		$	(2	)		N/M	%	$	1,656		$	1,774			(7	)%
Net investment income		440			354			168			157			7			67			65			3			675			576			17
Other revenues		64			69			(1	)		8			(113	)		(1	)		5			(120	)		62			82			(24	)
Total operating revenues		2,009			2,050			315			314			0			69			68			1			2,393			2,432			(2	)
Claims, benefits and expenses:
Net incurred claims and benefits		1,000			1,125			269			316			15			23			26			12			1,292			1,467			12
Policyholders’ dividends		2			4			—			1			N/M			—			—			N/M			2			5			60
Amortization of deferred acquisition costs		345			359			4			2			(100	)		—			(1	)		N/M			349			360			3
Other insurance related expenses		131			101			47			51			8			—			(3	)		N/M			178			149			(19	)
Other expenses		62			53			51			5			N/M			30			29			(3	)		143			87			(64	)
Total claims, benefits and expenses		1,540			1,642			371			375			1			53			51			(4	)		1,964			2,068			5
Operating income (loss) from continuing operations before income tax		469			408			(56	)		(61	)		8			16			17			(6	)		429			364			18
Income tax (expense) benefit on operating income (loss)		(137	)		(128	)		30			31			(3	)		(3	)		(5	)		40			(110	)		(102	)		(8	)
Net operating income attributable to noncontrolling interests		(14	)		(11	)		—			—			N/M			—			(1	)		N/M			(14	)		(12	)		(17	)
Net operating income (loss) from continuing operations attributable to CNAF		318			269			(26	)		(30	)		13			13			11			18			305			250			22
Net realized investment gains (losses), net of participating policyholders’ interests		(266	)		(89	)		13			(6	)		N/M			(44	)		(16	)		(175	)		(297	)		(111	)		(168	)
Income tax (expense) benefit on realized investment gains (losses)		88			31			(4	)		2			N/M			14			7			100			98			40			145
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			—			—			N/M			—			—			N/M			—			—			N/M
Net realized investment gains (losses) attributable to CNAF		(178	)		(58	)		9			(4	)		N/M			(30	)		(9	)		N/M			(199	)		(71	)		(180	)
Net income (loss) from continuing operations attributable to CNAF	$	140		$	211		$	(17	)	$	(34	)		50	%	$	(17	)	$	2			N/M	%	$	106		$	179			(41)	%

	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
Other Financial Data													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
Property & Casualty Company Information	2009			2008			2009			2008			% Change			2009			2008			% Change			2009			2008			% Change
Gross written premiums	$	2,083		$	2,225		$	149		$	148			1	%	$	4		$	3			33	%	$	2,236		$	2,376			(6	)%
Net written premiums		1,595			1,708			144			147			(2	)		2			—			N/M			1,741			1,855			(6	)
Net earned premiums		1,505			1,627			148			149			(1	)		3			(2	)		N/M			1,656			1,774			(7	)
FINANCIAL RATIOS
Loss & LAE		66.4	%		69.2	%		N/M	%		N/M	%					N/M	%		N/M	%					78.1	%		80.3	%
Acquisition expense		17.2			16.0			N/M			N/M						N/M			N/M						16.7			15.5
Underwriting expense		14.3			12.2			N/M			N/M						N/M			N/M						15.2			13.2
Expense		31.5			28.2			N/M			N/M						N/M			N/M						31.9			28.7
Dividend		0.2			0.3			N/M			N/M						N/M			N/M						0.1			0.2
Combined ratio		98.1	%		97.7	%		N/M	%		N/M	%					N/M	%		N/M	%					110.1	%		109.2	%

11

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

SIX MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
JUNE 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2009			2008			% Change			2009			2008			% Change			2009			2008			% Change
Gross written premiums	$	1,688		$	1,776			(5	)%	$	2,500		$	2,574			(3	)%	$	4,188		$	4,350			(4	)%
Net written premiums		1,524			1,619			(6	)		1,663			1,708			(3	)		3,187			3,327			(4	)
Net earned premiums		1,381			1,551			(11	)		1,646			1,732			(5	)		3,027			3,283			(8	)
Net investment income		372			363			2			296			287			3			668			650			3
Other revenues		29			29			0			105			107			(2	)		134			136			(1	)
Total operating revenues		1,782			1,943			(8	)		2,047			2,126			(4	)		3,829			4,069			(6	)
Claims, benefits and expenses:
Net incurred claims and benefits		988			1,143			14			1,021			1,125			9			2,009			2,268			11
Policyholders’ dividends		2			7			71			6			8			25			8			15			47
Amortization of deferred acquisition costs		329			354			7			359			368			2			688			722			5
Other insurance related expenses		144			106			(36	)		122			103			(18	)		266			209			(27	)
Other expenses		31			24			(29	)		96			92			(4	)		127			116			(9	)
Total claims, benefits and expenses		1,494			1,634			9			1,604			1,696			5			3,098			3,330			7
Operating income from continuing operations before income tax		288			309			(7	)		443			430			3			731			739			(1	)
Income tax expense on operating income		(82	)		(90	)		9			(126	)		(138	)		9			(208	)		(228	)		9
Net operating income attributable to noncontrolling interests		—			—			N/M			(25	)		(23	)		(9	)		(25	)		(23	)		(9	)
Net operating income from continuing operations attributable to CNAF		206			219			(6	)		292			269			9			498			488			2
Net realized investment losses, net of participating policyholders’ interests		(349	)		(76	)		N/M			(212	)		(38	)		N/M			(561	)		(114	)		N/M
Income tax benefit on realized investment losses		122			26			N/M			69			14			N/M			191			40			N/M
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			N/M			1			—			N/M			1			—			N/M
Net realized investment losses attributable to CNAF		(227	)		(50	)		N/M			(142	)		(24	)		N/M			(369	)		(74	)		N/M
Net income (loss) from continuing operations attributable to CNAF	$	(21	)	$	169			(112	)%		$150		$	245			(39	)%	$	129		$	414			(69	)%
FINANCIAL RATIOS
Loss & LAE		71.5	%		73.7	%					62.0	%		65.0	%					66.3	%		69.1	%
Acquisition expense		16.6			15.8						18.1			17.1						17.4			16.5
Underwriting expense		17.6			13.8						11.1			10.0						14.1			11.8
Expense		34.2			29.6						29.2			27.1						31.5			28.3
Dividend		0.2			0.5						0.4			0.5						0.3			0.5
Combined ratio		105.9	%		103.8	%					91.6	%		92.6	%					98.1	%		97.9	%
RATIO IMPACTS
Impact of catastrophes
Pretax net accident year catastrophe losses incurred	$	52		$	98					$	4		$	2					$	56		$	100
Impact on loss & LAE ratio		3.8	%		6.3	%					0.2	%		0.1	%					1.9	%		3.1	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & ALAE reserve development (1)	$	(110	)	$	(50	)				$	(81	)	$	18					$	(191	)	$	(32	)
Prior year premium development		76			1						(3	)		(18	)					73			(17	)
Other (2)		11			15						(2	)		(5	)					9			10
Total development & other	$	(23	)	$	(34	)				$	(86	)	$	(5	)				$	(109	)	$	(39	)
Impact of development & other on loss & LAE ratio		(3.1	)%		(2.2	)%					(5.2	)%		0.1	%					(4.4	)%		(1.0	)%

(1)	In 2009, Standard Lines includes $64 million and Specialty Lines includes $4 million of favorable loss and LAE reserve development related to catastrophes in accident years 2005, 2007 and 2008. In 2008, Standard Lines includes $29 million of favorable loss & LAE reserve development related to the 2005 hurricanes.
(2)	Other includes the impacts of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.

12

CNA FINANCIAL CORPORATION
Financial Supplement
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations

SIX MONTHS ENDED	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
JUNE 30													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2009			2008			2009			2008			% Change			2009			2008			% Change			2009			2008			% Change
Net earned premiums	$	3,027		$	3,283		$	298		$	306			(3	)%	$	3		$	(2	)		N/M	%	$	3,328		$	3,587			(7)	%
Net investment income		668			650			327			241			36			100			119			(16	)		1,095			1,010			8
Other revenues		134			136			5			21			(76	)		1			11			(91	)		140			168			(17	)
Total operating revenues		3,829			4,069			630			568			11			104			128			(19	)		4,563			4,765			(4	)
Claims, benefits and expenses:
Net incurred claims and benefits		2,009			2,268			574			528			(9	)		44			47			6			2,627			2,843			8
Policyholders’ dividends		8			15			1			3			67			—			—			N/M			9			18			50
Amortization of deferred acquisition costs		688			722			10			6			(67	)		—			—			N/M			698			728			4
Other insurance related expenses		266			209			93			101			8			—			—			N/M			359			310			(16	)
Other expenses		127			116			57			10			N/M			60			61			2			244			187			(30	)
Total claims, benefits and expenses		3,098			3,330			735			648			(13	)		104			108			4			3,937			4,086			4
Operating income (loss) from continuing operations before income tax		731			739			(105	)		(80	)		(31	)		—			20			N/M			626			679			(8	)
Income tax (expense) benefit on operating income (loss)		(208	)		(228	)		57			47			21			4			(3	)		N/M			(147	)		(184	)		20
Net operating income attributable to noncontrolling interests		(25	)		(23	)		—			—			N/M			—			(1	)		N/M			(25	)		(24	)		(4	)
Net operating income (loss) from continuing operations attributable to CNAF		498			488			(48	)		(33	)		(45	)		4			16			(75	)		454			471			(4	)
Net realized investment losses, net of participating policyholders’ interests		(561	)		(114	)		(177	)		(23	)		N/M			(91	)		(25	)		N/M			(829	)		(162	)		N/M
Income tax benefit on realized investment losses		191			40			62			8			N/M			32			10			N/M			285			58			N/M
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		1			—			—			—			N/M			—			—			N/M			1			—			N/M
Net realized investment losses attributable to CNAF		(369	)		(74	)		(115	)		(15	)		N/M			(59	)		(15	)		N/M			(543	)		(104	)		N/M
Net income (loss) from continuing operations attributable to CNAF	$	129		$	414		$	(163	)	$	(48	)		N/M	%	$	(55	)	$	1			N/M	%	$	(89	)	$	367			(124	)%
	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
Other Financial Data													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
Property & Casualty Company Information	2009			2008			2009			2008			% Change			2009			2008			% Change			2009			2008			% Change
Gross written premiums	$	4,188		$	4,350		$	305		$	311			(2	)%	$	4		$	2			100	%	$	4,497		$	4,663			(4	)%
Net written premiums		3,187			3,327			301			309			(3	)		—			(3	)		N/M			3,488			3,633			(4	)
Net earned premiums		3,027			3,283			298			305			(2	)		3			(2	)		N/M			3,328			3,586			(7	)
FINANCIAL RATIOS
Loss & LAE		66.3	%		69.1	%		N/M	%		N/M	%					N/M	%		N/M	%					77.6	%		79.0	%
Acquisition expense		17.4			16.5			N/M			N/M						N/M			N/M						16.9			16.1
Underwriting expense		14.1			11.8			N/M			N/M						N/M			N/M						14.9			12.8
Expense		31.5			28.3			N/M			N/M						N/M			N/M						31.8			28.9
Dividend		0.3			0.5			N/M			N/M						N/M			N/M						0.2			0.4
Combined ratio		98.1	%		97.9	%		N/M	%		N/M	%					N/M	%		N/M	%					109.6	%		108.3	%

13

CNA FINANCIAL CORPORATION
Financial Supplement

Components of Pretax Net Investment Income

	Standard Lines
(In millions)	1Q08			2Q08		3Q08			4Q08			2008			1Q09			2Q09		YTD2009
Income (loss) from limited partnerships	$	(23	)	$	22	$	(39	)	$	(159	)	$	(199	)	$	(36	)	$	88	$	52
Income (loss) from trading portfolio — Indexed Group Annuity		—			—		—			—			—			—			—		—
Income (loss) from trading portfolio — Other		(1	)		1		(1	)		(1	)		(2	)		—			4		4
Other investment income		188			176		176			167			707			156			160		316
Net investment income	$	164		$	199	$	136		$	7		$	506		$	120		$	252	$	372

	Specialty Lines
	1Q08			2Q08		3Q08			4Q08			2008			1Q09			2Q09		YTD2009
Income (loss) from limited partnerships	$	(13	)	$	13	$	(24	)	$	(97	)	$	(121	)	$	(22	)	$	54	$	32
Income (loss) from trading portfolio — Indexed Group Annuity		—			—		—			—			—			—			—		—
Income (loss) from trading portfolio — Other		—			—		—			(1	)		(1	)		—			3		3
Other investment income		145			142		145			141			573			130			131		261
Net investment income	$	132		$	155	$	121		$	43		$	451		$	108		$	188	$	296

	P&C Operations
	1Q08			2Q08		3Q08			4Q08			2008			1Q09			2Q09		YTD2009
Income (loss) from limited partnerships	$	(36	)	$	35	$	(63	)	$	(256	)	$	(320	)	$	(58	)	$	142	$	84
Income (loss) from trading portfolio — Indexed Group Annuity		—			—		—			—			—			—			—		—
Income (loss) from trading portfolio — Other		(1	)		1		(1	)		(2	)		(3	)		—			7		7
Other investment income		333			318		321			308			1,280			286			291		577
Net investment income	$	296		$	354	$	257		$	50		$	957		$	228		$	440	$	668

	Life & Group Non-Core
	1Q08			2Q08			3Q08			4Q08			2008			1Q09			2Q09		YTD2009
Income (loss) from limited partnerships	$	4		$	5		$	(2	)	$	(12	)	$	(5	)	$	(2	)	$	—	$	(2	)
Income (loss) from trading portfolio — Indexed Group Annuity		(76	)		(5	)		(22	)		(43	)		(146	)		—			—		—
Income (loss) from trading portfolio — Other		—			—			—			—			—			—			—		—
Other investment income		156			157			159			163			635			161			168		329
Net investment income	$	84		$	157		$	135		$	108		$	484		$	159		$	168	$	327

	Corporate & Other Non-Core
	1Q08			2Q08		3Q08			4Q08			2008			1Q09			2Q09		YTD2009
Income (loss) from limited partnerships	$	(7	)	$	6	$	(12	)	$	(41	)	$	(54	)	$	(10	)	$	23	$	13
Income (loss) from trading portfolio — Indexed Group Annuity		—			—		—			—			—			—			—		—
Income (loss) from trading portfolio — Other		—			—		—			—			—			—			1		1
Other investment income		61			59		59			53			232			43			43		86
Net investment income	$	54		$	65	$	47		$	12		$	178		$	33		$	67	$	100

	Total Operations
	1Q08			2Q08			3Q08			4Q08			2008			1Q09			2Q09		YTD2009
Income (loss) from limited partnerships	$	(39	)	$	46		$	(77	)	$	(309	)	$	(379	)	$	(70	)	$	165	$	95
Income (loss) from trading portfolio — Indexed Group Annuity		(76	)		(5	)		(22	)		(43	)		(146	)		—			—		—
Income (loss) from trading portfolio — Other		(1	)		1			(1	)		(2	)		(3	)		—			8		8
Other investment income		550			534			539			524			2,147			490			502		992
Net investment income	$	434		$	576		$	439		$	170		$	1,619		$	420		$	675	$	1,095

14

CNA FINANCIAL CORPORATION
Financial Supplement

Statutory Data — Preliminary

PERIODS ENDED JUNE 30	Three Months									Six Months
Income Statement	(Preliminary)						Fav / (Unfav)			(Preliminary)						Fav / (Unfav)
(In millions)	2009			2008			% Change			2009			2008			% Change
Combined Continental Casualty Companies
Gross written premiums	$	2,001		$	2,139			(6	)%	$	4,017		$	4,184			(4	)%
Net written premiums		1,515			1,619			(6	)		3,032			3,165			(4	)
Net earned premiums		1,292			1,396			(7	)		2,734			2,788			(2	)
Claim and claim adjustment expenses		1,064			1,171			(9	)		2,120			2,334			(9	)
Acquisition expenses		258			237			(9	)		502			479			(5	)
Underwriting expenses		223			196			(14	)		434			386			(12	)
Policyholders’ dividends		3			4			25			7			7			—
Underwriting loss		(256	)		(212	)		(21	)		(329	)		(418	)		21
Net investment income		436			448			(3	)		817			926			(12	)
Other income (expenses)		13			(52	)		125			16			(48	)		133
Income tax expense		(22	)		(47	)		53			(57	)		(102	)		44
Net realized losses		(303	)		(141	)		(115	)		(835	)		(136	)		N/M
Net income (loss)	$	(132	)	$	(4	)		N/M	%	$	(388	)	$	222			N/M	%
Financial Ratios
Loss and LAE		82.4	%		83.9	%					77.5	%		83.7	%
Acquisition expense		17.1			14.6						16.5			15.1
Underwriting expense		14.5			12.1						14.4			12.2
Expense		31.6			26.7						30.9			27.3
Dividend		0.3			0.3						0.3			0.3
Combined ratio		114.3	%		110.9	%					108.7	%		111.3	%

SUPPLEMENTAL STATUTORY DATA

	(Preliminary)
(In millions)	June 30, 2009		December 31, 2008
Combined Continental Casualty Companies
Statutory surplus (1)	$	8,173	$	7,819
Life Company
Statutory surplus	$	449	$	487

(1) Surplus includes the Combined Continental Casualty Companies’ equity ownership of the life insurance subsidiary.

15

CNA FINANCIAL CORPORATION
Financial Supplement

Property & Casualty Operations
Loss and LAE Ratio Analysis

	Standard Lines
	2009 YTD			2008 FY			2008 FY
	Evaluated at			Evaluated at			Evaluated at
	6/30/09			12/31/08			6/30/09
Gross Accident Year		73.3	%		76.4	%		74.9	%
Impact of Reinsurance		1.3			2.2			2.5
Net Accident Year		74.6			78.6			77.4	%
Impact of Development and Other (1) (2)		(3.1	)		(3.2	)
Net Calendar Year		71.5	%		75.4	%

	Specialty Lines
	2009 YTD			2008 FY			2008 FY
	Evaluated at			Evaluated at			Evaluated at
	6/30/09			12/31/08			6/30/09
Gross Accident Year		67.1	%		67.0	%		67.0	%
Impact of Reinsurance		0.1			0.3			0.5
Net Accident Year		67.2			67.3			67.5	%
Impact of Development and Other (1)		(5.2	)		(5.4	)
Net Calendar Year		62.0	%		61.9	%

	P&C Operations
	2009 YTD			2008 FY			2008 FY
	Evaluated at			Evaluated at			Evaluated at
	6/30/09			12/31/08			6/30/09
Gross Accident Year		69.5	%		70.7	%		70.1	%
Impact of Reinsurance		1.2			1.9			2.0
Net Accident Year		70.7			72.6			72.1	%
Impact of Development and Other (1) (2)		(4.4	)		(4.4	)
Net Calendar Year		66.3	%		68.2	%

(1)

Other includes the impacts of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.

(2)

In 2008, the amount due from policyholders related to losses under deductible policies within Standard Lines was reduced by $90 million for insolvent insureds. The reduction of this amount, which is reflected as unfavorable net prior year reserve development, had no effect on 2008 results of operations as the Company had previously recognized provisions in prior years. These impacts were reported in Insurance claims and policyholders’ benefits in the 2008 Consolidated Statement of Operations.

16