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) January 21, 2010

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.)

333 S. Wabash, Chicago, Illinois	60604
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (312) 822-5000

(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):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

As a result of the realignment of management responsibilities, CNA Financial Corporation and its controlled subsidiaries (the Company) has revised its property and casualty segments in the fourth quarter of 2009. There was no change in the Company’s Life & Group Non-Core and Corporate & Other Non-Core segments.

On January 21, 2010, the Company posted a financial supplement on its website providing information on its revised property and casualty segments for each of the quarters in and for the nine month period ended September 30, 2009, the three month period ended December 31, 2008, and the years ended December 31, 2008 and December 31, 2007 as if the current segment changes occurred as of the beginning of the earliest period presented. The financial supplement is furnished as Exhibit 99.1 to this Form 8-K.

The changes to the Company’s segments are as follows:

The Company’s core property and casualty commercial insurance operations are reported in two business segments: CNA Specialty and CNA Commercial. CNA Specialty provides a broad array of professional, financial and specialty property and casualty products and services, primarily through insurance brokers and managing general underwriters. CNA Commercial includes property and casualty coverages sold to small businesses and middle market entities and organizations primarily through an independent agency distribution system. CNA Commercial also includes commercial insurance and risk management products sold to large corporations primarily through insurance brokers. Previously, the Company’s international operations were treated as a separate business unit within CNA Specialty. The products sold through the Company’s international operations are now reflected within CNA Specialty and CNA Commercial in a manner that aligns with the products within each segment. Additionally, our excess and surplus lines, which were previously included in CNA Specialty, are now included in CNA Commercial, as part of CNA Select Risk.

The information under Item 2.02 and in Exhibit 99.1 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 Exhibit 99.1 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:

Exhibit No.	Description
99.1	CNA Financial Corporation financial supplement, posted on its website January 21, 2010, providing supplemental financial information for each of the quarters in and for the nine month period ended September 30, 2009, the three month period ended December 31, 2008, and the years ended December 31, 2008 and December 31, 2007.

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: January 21, 2010	By	/s/ D. Craig Mense
		(Signature)
		D. Craig Mense
		Executive Vice President and
		Chief Financial Officer

EX-99.1

Exhibit 99.1

CNA Financial Corporation

Supplemental Financial Information

Segment Financial Results For the Quarterly Periods in and for

the Nine Months Ended September 30, 2009,

the Three Months Ended December 31, 2008,

and the Years Ended December 31, 2008 and 2007

CNA Financial Corporation

Table of Contents

Segment Financial Results For the Quarterly Periods in and for

the Nine Months Ended September 30, 2009,

the Three Months Ended December 31, 2008,

and the Years Ended December 31, 2008 and 2007

As a result of the realignment of management responsibilities, CNA Financial Corporation and its controlled subsidiaries (the Company or CNA) has revised its property and casualty segments in the fourth quarter of 2009. There was no change in the Company’s Life & Group Non-Core and Corporate & Other Non-Core segments.

The Company’s core property and casualty commercial insurance operations are reported in two business segments: CNA Specialty and CNA Commercial. CNA Specialty provides a broad array of professional, financial and specialty property and casualty products and services, primarily through insurance brokers and managing general underwriters. CNA Commercial includes property and casualty coverages sold to small businesses and middle market entities and organizations primarily through an independent agency distribution system. CNA Commercial also includes commercial insurance and risk management products sold to large corporations primarily through insurance brokers. Previously, the Company’s international operations were treated as a separate business unit within CNA Specialty. The products sold through the Company’s international operations are now reflected within CNA Specialty and CNA Commercial in a manner that aligns with the products within each segment. Additionally, the Company’s excess and surplus lines, which were previously included in CNA Specialty, are now included in CNA Commercial, as part of CNA Select Risk.

This Financial Supplement presents the Company’s segment financial results for each of the quarters in and for the nine month period ended September 30, 2009, the three month period ended December 31, 2008, and the years ended December 31, 2008 and December 31, 2007 as if the current segment changes occurred as of the beginning of the earliest period presented.

	Page
Definitions and Presentation		i
Segment results for each of the three quarters in the period ended September 30, 2009 and the nine months ended September 30, 2009		1-6
Segment results for the three months ended December 31, 2008		7-8
Segment results for the years ended December 31, 2008 and 2007		9-10

CNA Financial Corporation

Definitions and Presentation

• P&C Operations includes CNA Specialty and CNA Commercial.     

• 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.

• 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 CNA Specialty and CNA Commercial, 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.

• Certain immaterial differences are due to rounding.     

i

Segment results for each of the three quarters

in the period ended September 30, 2009 and the nine months

ended September 30, 2009

CNA FINANCIAL CORPORATION
Financial Supplement
CNA Specialty

	2009
										Nine months ended
(In millions)	Q1			Q2			Q3			September 30, 2009
Gross written premiums	$	1,093		$	1,031		$	1,071		$	3,195
Net written premiums		672			655			690			2,017
Net earned premiums		659			668			687			2,014
Net investment income		85			157			154			396
Other revenues		55			45			53			153
Total operating revenues		799			870			894			2,563
Claims, benefits and expenses:
Net incurred claims and benefits		395			404			410			1,209
Policyholders’ dividends		3			3			1			7
Amortization of deferred acquisition costs		148			152			157			457
Other insurance related expenses		41			42			40			123
Other expenses		49			39			45			133
Total claims, benefits and expenses		636			640			653			1,929
Operating income from continuing operations before income tax		163			230			241			634
Income tax expense on operating income		(46	)		(71	)		(78	)		(195	)
Net operating income, after-tax, attributable to noncontrolling interests		(8	)		(8	)		(10	)		(26	)
Net operating income from continuing operations attributable to CNA		109			151			153			413
Net realized investment losses, net of participating policyholders’ interests		(109	)		(83	)		(35	)		(227	)
Income tax benefit on realized investment losses		38			27			11			76
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			—			—
Net realized investment losses attributable to CNA		(71	)		(56	)		(24	)		(151	)
Net income from continuing operations attributable to CNA	$	38		$	95		$	129		$	262
FINANCIAL RATIOS
Loss & LAE		60.0	%		60.4	%		59.8	%		60.1	%
Acquisition expense		18.3			18.8			19.5			18.9
Underwriting expense		10.4			10.2			9.3			9.8
Expense		28.7			29.0			28.8			28.7
Dividend		0.4			0.4			0.2			0.4
Combined ratio		89.1	%		89.8	%		88.8	%		89.2	%
RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	1		$	3		$	2		$	6
Impact on loss & LAE ratio		0.2	%		0.3	%		0.3	%		0.3	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development	$	(29	)	$	(35	)	$	(39	)	$	(103	)
Prior year premium development		(5	)		2			3			—
Other (1)		(1	)		—			—			(1	)
Total development & other	$	(35	)	$	(33	)	$	(36	)	$	(104	)
Impact of development & other on loss & LAE ratio		(5.1	)%		(5.1	)%		(5.5	)%		(5.2	)%

(1) Other includes the impacts of interest accretion and change in allowance for uncollectible reinsurance.

1

CNA FINANCIAL CORPORATION
Financial Supplement
CNA Commercial

	2009
										Nine months ended
(In millions)	Q1			Q2			Q3			September 30, 2009
Gross written premiums	$	1,012		$	1,052		$	882		$	2,946
Net written premiums		920			940			787			2,647
Net earned premiums		863			837			874			2,574
Net investment income		143			283			276			702
Other revenues		15			19			13			47
Total operating revenues		1,021			1,139			1,163			3,323
Claims, benefits and expenses:
Net incurred claims and benefits		614			596			642			1,852
Policyholders’ dividends		3			(1	)		4			6
Amortization of deferred acquisition costs		195			193			203			591
Other insurance related expenses		94			89			118			301
Other expenses		16			23			23			62
Total claims, benefits and expenses		922			900			990			2,812
Operating income from continuing operations before income tax		99			239			173			511
Income tax expense on operating income		(25	)		(66	)		(52	)		(143	)
Net operating income, after-tax, attributable to noncontrolling interests		(3	)		(6	)		(3	)		(12	)
Net operating income from continuing operations attributable to CNA		71			167			118			356
Net realized investment losses, net of participating policyholders’ interests		(186	)		(183	)		(69	)		(438	)
Income tax benefit on realized investment losses		65			61			24			150
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		1			—			(1	)		—
Net realized investment losses attributable to CNA		(120	)		(122	)		(46	)		(288	)
Net income (loss) from continuing operations attributable to CNA	$	(49	)	$	45		$	72		$	68
FINANCIAL RATIOS
Loss & LAE		71.1	%		71.2	%		73.4	%		71.9	%
Acquisition expense		17.0			16.0			20.7			17.9
Underwriting expense		16.5			17.6			16.1			16.8
Expense		33.5			33.6			36.8			34.7
Dividend		0.4			(0.2	)		0.4			0.2
Combined ratio		105.0	%		104.6	%		110.6	%		106.8	%
RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	12		$	40		$	21		$	73
Impact on loss & LAE ratio		1.4	%		4.8	%		2.4	%		2.8	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development	$	(42	)	$	(85	)	$	(21	)	$	(148	)
Prior year premium development		20			56			9			85
Other (1)		5			5			2			12
Total development & other	$	(17	)	$	(24	)	$	(10	)	$	(51	)
Impact of development & other on loss & LAE ratio		(2.5	)%		(4.5	)%		(1.5	)%		(2.8	)%

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

2

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Operations

	2009
										Nine months ended
(In millions)	Q1			Q2			Q3			September 30, 2009
Gross written premiums	$	2,105		$	2,083		$	1,953		$	6,141
Net written premiums		1,592			1,595			1,477			4,664
Net earned premiums		1,522			1,505			1,561			4,588
Net investment income		228			440			430			1,098
Other revenues		70			64			66			200
Total operating revenues		1,820			2,009			2,057			5,886
Claims, benefits and expenses:
Net incurred claims and benefits		1,009			1,000			1,052			3,061
Policyholders’ dividends		6			2			5			13
Amortization of deferred acquisition costs		343			345			360			1,048
Other insurance related expenses		135			131			158			424
Other expenses		65			62			68			195
Total claims, benefits and expenses		1,558			1,540			1,643			4,741
Operating income from continuing operations before income tax		262			469			414			1,145
Income tax expense on operating income		(71	)		(137	)		(130	)		(338	)
Net operating income, after-tax, attributable to noncontrolling interests		(11	)		(14	)		(13	)		(38	)
Net operating income from continuing operations attributable to CNA		180			318			271			769
Net realized investment losses, net of participating policyholders’ interests		(295	)		(266	)		(104	)		(665	)
Income tax benefit on realized investment losses		103			88			35			226
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		1			—			(1	)		—
Net realized investment losses attributable to CNA		(191	)		(178	)		(70	)		(439	)
Net income (loss) from continuing operations attributable to CNA	$	(11	)	$	140		$	201		$	330
FINANCIAL RATIOS
Loss & LAE		66.3	%		66.4	%		67.4	%		66.7	%
Acquisition expense		17.6			17.2			20.2			18.3
Underwriting expense		13.9			14.3			13.1			13.8
Expense		31.5			31.5			33.3			32.1
Dividend		0.4			0.2			0.3			0.3
Combined ratio		98.2	%		98.1	%		101.0	%		99.1	%
RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	13		$	43		$	23		$	79
Impact on loss & LAE ratio		0.9	%		2.9	%		1.5	%		1.7	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development	$	(71	)	$	(120	)	$	(60	)	$	(251	)
Prior year premium development		15			58			12			85
Other (1)		4			5			2			11
Total development & other	$	(52	)	$	(57	)	$	(46	)	$	(155	)
Impact of development & other on loss & LAE ratio		(3.7	)%		(4.9	)%		(3.3	)%		(4.0	)%

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

3

CNA FINANCIAL CORPORATION
Financial Supplement
Life & Group Non-Core

	2009
										Nine months ended
(In millions)	Q1			Q2			Q3			September 30, 2009
Net earned premiums	$	150		$	148		$	149		$	447
Net investment income		159			168			169			496
Other revenues		6			(1	)		2			7
Total operating revenues		315			315			320			950
Claims, benefits and expenses:
Net incurred claims and benefits		305			269			199			773
Policyholders’ dividends		1			—			2			3
Amortization of deferred acquisition costs		6			4			5			15
Other insurance related expenses		46			47			45			138
Other expenses		6			51			7			64
Total claims, benefits and expenses		364			371			258			993
Operating income (loss) from continuing operations before income tax		(49	)		(56	)		62			(43	)
Income tax (expense) benefit on operating income (loss)		27			30			(11	)		46
Net operating (income) loss, after-tax, attributable to noncontrolling interests		—			—			—			—
Net operating income (loss) from continuing operations attributable to CNA		(22	)		(26	)		51			3
Net realized investment gains (losses), net of participating policyholders’ interests		(190	)		13			21			(156	)
Income tax (expense) benefit on realized investment gains (losses)		66			(4	)		(7	)		55
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			—			—
Net realized investment gains (losses) attributable to CNA		(124	)		9			14			(101	)
Net income (loss) from continuing operations attributable to CNA	$	(146	)	$	(17	)	$	65		$	(98	)

4

CNA FINANCIAL CORPORATION
Financial Supplement
Corporate & Other Non-Core

	2009
										Nine months ended
(In millions)	Q1			Q2			Q3			September 30, 2009
Net earned premiums	$	—		$	3		$	(3	)	$	—
Net investment income		33			67			61			161
Other revenues		2			(1	)		5			6
Total operating revenues		35			69			63			167
Claims, benefits and expenses:
Net incurred claims and benefits		21			23			25			69
Policyholders’ dividends		—			—			—			—
Amortization of deferred acquisition costs		—			—			—			—
Other insurance related expenses		—			—			1			1
Other expenses		30			30			27			87
Total claims, benefits and expenses		51			53			53			157
Operating income (loss) from continuing operations before income tax		(16	)		16			10			10
Income tax (expense) benefit on operating income (loss)		7			(3	)		(1	)		3
Net operating (income) loss, after-tax, attributable to noncontrolling interests		—			—			—			—
Net operating income (loss) from continuing operations attributable to CNA		(9	)		13			9			13
Net realized investment losses, net of participating policyholders’ interests		(47	)		(44	)		(17	)		(108	)
Income tax benefit on realized investment losses		18			14			6			38
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			—			—
Net realized investment losses attributable to CNA		(29	)		(30	)		(11	)		(70	)
Net loss from continuing operations attributable to CNA	$	(38	)	$	(17	)	$	(2	)	$	(57	)

5

CNA FINANCIAL CORPORATION
Financial Supplement
Total Continuing Operations

	2009
										Nine months ended
(In millions)	Q1			Q2			Q3			September 30, 2009
Net earned premiums	$	1,672		$	1,656		$	1,707		$	5,035
Net investment income		420			675			660			1,755
Other revenues		78			62			73			213
Total operating revenues		2,170			2,393			2,440			7,003
Claims, benefits and expenses:
Net incurred claims and benefits		1,335			1,292			1,276			3,903
Policyholders’ dividends		7			2			7			16
Amortization of deferred acquisition costs		349			349			365			1,063
Other insurance related expenses		181			178			204			563
Other expenses		101			143			102			346
Total claims, benefits and expenses		1,973			1,964			1,954			5,891
Operating income from continuing operations before income tax		197			429			486			1,112
Income tax expense on operating income		(37	)		(110	)		(142	)		(289	)
Net operating income, after-tax, attributable to noncontrolling interests		(11	)		(14	)		(13	)		(38	)
Net operating income from continuing operations attributable to CNA		149			305			331			785
Net realized investment losses, net of participating policyholders’ interests		(532	)		(297	)		(100	)		(929	)
Income tax benefit on realized investment losses		187			98			34			319
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		1			—			(1	)		—
Net realized investment losses attributable to CNA		(344	)		(199	)		(67	)		(610	)
Net income (loss) from continuing operations attributable to CNA	$	(195	)	$	106		$	264		$	175

6

Segment results for the three months ended December 31, 2008

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Operations

THREE MONTHS ENDED
DECEMBER 31, 2008
(In millions)	CNA Specialty			CNA Commercial			P&C Operations
Gross written premiums	$	1,066		$	957		$	2,023
Net written premiums		683			881			1,564
Net earned premiums		685			930			1,615
Net investment income		29			21			50
Other revenues		57			19			76
Total operating revenues		771			970			1,741
Claims, benefits and expenses:
Net incurred claims and benefits		441			507			948
Policyholders’ dividends		4			3			7
Amortization of deferred acquisition costs		161			220			381
Other insurance related expenses		30			75			105
Other expenses		66			49			115
Total claims, benefits and expenses		702			854			1,556
Operating income from continuing operations before income tax		69			116			185
Income tax expense on operating income		(15	)		(30	)		(45	)
Net operating income, after-tax, attributable to noncontrolling interests		(12	)		(5	)		(17	)
Net operating income from continuing operations attributable to CNA		42			81			123
Net realized investment losses, net of participating policyholders’ interests		(122	)		(245	)		(367	)
Income tax benefit on realized investment losses		43			86			129
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			—
Net realized investment losses attributable to CNA		(79	)		(159	)		(238	)
Net loss from continuing operations attributable to CNA	$	(37	)	$	(78	)	$	(115	)
FINANCIAL RATIOS
Loss & LAE		64.2	%		54.5	%		58.6	%
Acquisition expense		18.3			17.6			17.9
Underwriting expense		9.4			14.1			12.1
Expense		27.7			31.7			30.0
Dividend		0.7			0.3			0.5
Combined ratio		92.6	%		86.5	%		89.1	%
RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	4		$	6		$	10
Impact on loss & LAE ratio		0.6	%		0.6	%		0.6	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development	$	(47	)	$	(47	)	$	(94	)
Prior year premium development		—			12			12
Other (1)		—			(104	)		(104	)
Total development & other (2)	$	(47	)	$	(139	)	$	(186	)
Impact of development & other on loss & LAE ratio		(6.9	)%		(15.3	)%		(11.8	)%

(1)

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

(2)

In 2008, the amount due from policyholders related to losses under deductible policies within CNA Commercial was reduced by $90 million for insolvent insureds. The reduction of this amount, which was reflected as unfavorable net prior year reserve development, had no effect on the fourth quarter 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.

7

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

THREE MONTHS ENDED
DECEMBER 31, 2008
(In millions)	P&C Operations			Life & Group Non-Core			Corporate & Other Non-Core			Total Continuing Operations
Net earned premiums	$	1,615		$	152		$	(2	)	$	1,765
Net investment income		50			108			12			170
Other revenues		76			8			2			86
Total operating revenues		1,741			268			12			2,021
Claims, benefits and expenses:
Net incurred claims and benefits		948			282			105			1,335
Policyholders’ dividends		7			1			—			8
Amortization of deferred acquisition costs		381			3			—			384
Other insurance related expenses		105			49			8			162
Other expenses		115			7			63			185
Total claims, benefits and expenses		1,556			342			176			2,074
Operating income (loss) from continuing operations before income tax		185			(74	)		(164	)		(53	)
Income tax (expense) benefit on operating income (loss)		(45	)		35			59			49
Net operating income, after-tax, attributable to noncontrolling interests		(17	)		—			—			(17	)
Net operating income (loss) from continuing operations attributable to CNA		123			(39	)		(105	)		(21	)
Net realized investment losses, net of participating policyholders’ interests		(367	)		(42	)		(75	)		(484	)
Income tax benefit on realized investment losses		129			15			26			170
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			—			—
Net realized investment losses attributable to CNA		(238	)		(27	)		(49	)		(314	)
Net loss from continuing operations attributable to CNA	$	(115	)	$	(66	)	$	(154	)	$	(335	)

8

Segment results for the years ended December 31, 2008 and 2007

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Operations

YEAR ENDED DECEMBER 31	CNA Specialty						CNA Commercial						P&C Operations
(In millions)	2008			2007			2008			2007			2008			2007
Gross written premiums	$	4,254		$	4,499		$	4,213		$	4,541		$	8,467		$	9,040
Net written premiums		2,719			2,766			3,770			4,007			6,489			6,773
Net earned premiums		2,755			2,759			3,787			4,104			6,542			6,863
Net investment income		354			493			603			1,006			957			1,499
Other revenues		219			186			65			49			284			235
Total operating revenues		3,328			3,438			4,455			5,159			7,783			8,597
Claims, benefits and expenses:
Net incurred claims and benefits		1,700			1,725			2,766			2,741			4,466			4,466
Policyholders’ dividends		13			6			1			7			14			13
Amortization of deferred acquisition costs		618			600			836			905			1,454			1,505
Other insurance related expenses		137			112			343			413			480			525
Other expenses		198			168			105			60			303			228
Total claims, benefits and expenses		2,666			2,611			4,051			4,126			6,717			6,737
Operating income from continuing operations before income tax		662			827			404			1,033			1,066			1,860
Income tax expense on operating income		(205	)		(268	)		(101	)		(324	)		(306	)		(592	)
Net operating income, after-tax, attributable to noncontrolling interests		(43	)		(35	)		(14	)		(12	)		(57	)		(47	)
Net operating income from continuing operations attributable to CNA		414			524			289			697			703			1,221
Net realized investment losses, net of participating policyholders’ interests		(257	)		(70	)		(518	)		(160	)		(775	)		(230	)
Income tax benefit on realized investment losses		90			25			183			55			273			80
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			—			—			—			—
Net realized investment losses attributable to CNA		(167	)		(45	)		(335	)		(105	)		(502	)		(150	)
Net income (loss) from continuing operations attributable to CNA	$	247		$	479		$	(46	)	$	592		$	201		$	1,071
FINANCIAL RATIOS
Loss & LAE		61.7	%		62.5	%		73.0	%		66.8	%		68.2	%		65.1	%
Acquisition expense		18.2			17.1			17.1			18.5			17.6			18.0
Underwriting expense		9.1			8.7			14.1			13.6			12.0			11.5
Expense		27.3			25.8			31.2			32.1			29.6			29.5
Dividend		0.5			0.2			—			0.2			0.2			0.2
Combined ratio		89.5	%		88.5	%		104.2	%		99.1	%		98.0	%		94.8	%
RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	15		$	3		$	343		$	75		$	358		$	78
Impact on loss & LAE ratio		0.6	%		0.1	%		9.0	%		1.8	%		5.5	%		1.1	%
Pretax assessments related to catastrophes	$	—		$	—		$	10		$	—		$	10		$	—
Impact on expense ratio		—	%		—	%		0.3	%		—	%		0.2	%		—	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development	$	(97	)	$	35		$	(101	)	$	(164	)	$	(198	)	$	(129	)
Prior year premium development		(9	)		(11	)		5			(19	)		(4	)		(30	)
Other (1)		(4	)		—			(83	)		25			(87	)		25
Total development & other (2)	$	(110	)	$	24		$	(179	)	$	(158	)	$	(289	)	$	(134	)
Impact of development & other on loss & LAE ratio		(3.9	)%		1.0	%		(4.8	)%		(3.6	)%		(4.4	)%		(1.8	)%

(1)

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

(2)

In 2008, the amount due from policyholders related to losses under deductible policies within CNA Commercial was reduced by $90 million for insolvent insureds. The reduction of this amount, which was 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.

9

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

YEAR ENDED DECEMBER 31	P&C Operations						Life & Group Non-Core						Corporate & Other Non-Core						Total Continuing Operations
(In millions)	2008			2007			2008			2007			2008			2007			2008			2007
Net earned premiums	$	6,542		$	6,863		$	612		$	618		$	(3	)	$	3		$	7,151		$	7,484
Net investment income		957			1,499			484			622			178			312			1,619			2,433
Other revenues		284			235			28			36			14			8			326			279
Total operating revenues		7,783			8,597			1,124			1,276			189			323			9,096			10,196
Claims, benefits and expenses:
Net incurred claims and benefits		4,466			4,466			1,104			1,312			133			217			5,703			5,995
Policyholders’ dividends		14			13			6			1			—			—			20			14
Amortization of deferred acquisition costs		1,454			1,505			13			15			—			—			1,467			1,520
Other insurance related expenses		480			525			201			199			13			9			694			733
Other expenses		303			228			24			43			150			130			477			401
Total claims, benefits and expenses		6,717			6,737			1,348			1,570			296			356			8,361			8,663
Operating income (loss) from continuing operations before income tax		1,066			1,860			(224	)		(294	)		(107	)		(33	)		735			1,533
Income tax (expense) benefit on operating income (loss)		(306	)		(592	)		116			135			45			32			(145	)		(425	)
Net operating income, after-tax, attributable to noncontrolling interests		(57	)		(47	)		—			—			—			(1	)		(57	)		(48	)
Net operating income (loss) from continuing operations attributable to CNA		703			1,221			(108	)		(159	)		(62	)		(2	)		533			1,060
Net realized investment losses, net of participating policyholders’ interests		(775	)		(230	)		(363	)		(56	)		(159	)		(25	)		(1,297	)		(311	)
Income tax benefit on realized investment losses		273			80			127			20			56			8			456			108
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			—			—			—			—			—			—
Net realized investment losses attributable to CNA		(502	)		(150	)		(236	)		(36	)		(103	)		(17	)		(841	)		(203	)
Net income (loss) from continuing operations attributable to CNA	$	201		$	1,071		$	(344	)	$	(195	)	$	(165	)	$	(19	)	$	(308	)	$	857

10