8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

Date of Report (Date of earliest event reported) August 2, 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))

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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On August 2, 2010, the registrant issued a press release and posted on its website a financial supplement providing information on its results of operations for the second quarter 2010. The press release is furnished as Exhibit 99.1 and the financial supplement is furnished as Exhibit 99.2 to this Form 8-K.

The information under Item 2.02 and in Exhibits 99.1 and 99.2 in this Current Report is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information under Item 2.02 and in Exhibits 99.1 and 99.2 in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits:

See Exhibit Index.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CNA Financial Corporation
	(Registrant)
Date: August 2, 2010	By	/s/ D. Craig Mense
		(Signature)
		D. Craig Mense Executive Vice President and Chief Financial Officer

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EXHIBIT INDEX

Exhibit No.	Description
99.1	CNA Financial Corporation press release, issued August 2, 2010, providing information on the second quarter 2010 results of operations.
99.2	CNA Financial Corporation financial supplement, posted on its website August 2, 2010, providing supplemental financial information on the second quarter 2010.

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACT:

MEDIA:	ANALYSTS:
Katrina W. Parker, 312/822-5167	Nancy M. Bufalino, 312/822-7757
Sarah J. Pang, 312/822-6394	Marie Hotza, 312/822-4278
	David C. Adams, 312/822-2183

CNA FINANCIAL ANNOUNCES SECOND QUARTER 2010 RESULTS:
NET OPERATING INCOME OF $269 MILLION, NET INCOME OF $283 MILLION,
P&C COMBINED RATIO OF 89.4%,
NET OPERATING ROE OF 9.5%

BOOK VALUE PER COMMON SHARE OF $40.43,
AN INCREASE OF 6% FROM MARCH 31, 2010

CHICAGO, August 2, 2010 — CNA Financial Corporation (NYSE: CNA) today announced second quarter 2010 results, which included net operating income of $269 million, or $0.91 per common share, and net income of $283 million, or $0.96 per common share. Property & Casualty Operations combined ratio for the second quarter was 89.4%. Book value per common share was $40.43 at June 30, 2010, as compared to $37.97 at March 31, 2010 and $35.91 at December 31, 2009.

	Results for the Three Months					Results for the Six Months
	Ended June 30 (a)					Ended June 30 (a)
($ millions)	2010		2009			2010		2009
Net operating income	$	269	$	305		$	492	$	454
Net realized investment gains (losses)		13		(199	)		35		(543	)
Net income (loss) from continuing operations		282		106			527		(89	)
Net income (loss) from discontinued operations		1		(1	)		1		(1	)
Net income (loss)	$	283	$	105		$	528	$	(90	)

(a) References to net operating income (loss), net realized investment gains (losses), net income (loss) from continuing operations and net income (loss) used in this press release reflect amounts attributable to CNA, unless otherwise noted. 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 2009 Form 10-K for further discussion of this measure.

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Earnings (Loss) Per Share Attributable to Common Stockholders

	Results for the						Results for the
	Three Months						Six Months
	Ended June 30						Ended June 30
	2010			2009			2010			2009
Net operating income	$	1.00		$	1.14		$	1.83		$	1.68
2008 Senior Preferred dividend		(0.09	)		(0.12	)		(0.19	)		(0.23	)
Net operating income attributable to CNA common stockholders		0.91			1.02			1.64			1.45
Net realized investment gains (losses)		0.05			(0.74	)		0.13			(2.01	)
Net income (loss) from continuing operations		0.96			0.28			1.77			(0.56	)
Net income (loss) from discontinued operations		—			(0.01	)		0.01			(0.01	)
Net income (loss) attributable to CNA common stockholders	$	0.96		$	0.27		$	1.78		$	(0.57	)

Net operating income decreased $36 million for the three months ended June 30, 2010 as compared with the same period in 2009. This decrease was primarily due to lower net investment income, driven by significantly decreased limited partnership results, and decreased current accident year underwriting results, partially offset by increased favorable net prior year development. For the three months ended June 30, 2010, catastrophe losses were $31 million after-tax, as compared to catastrophe losses of $28 million after-tax for the same period in 2009. Our Property & Casualty Operations produced second quarter combined ratios of 89.4% and 98.1% in 2010 and 2009.

“We are pleased to report our second quarter results, which include strong P&C underwriting results and solid investment results,” said Thomas F. Motamed, Chairman and Chief Executive Officer of CNA Financial Corporation. “Continued growth in our book value per common share — up 13% to $40.43 from year end 2009 — reflects the ongoing improvement of market values in our investment portfolio and consistent earnings.

“Our Specialty segment, which represents 45% of P&C Operations’ net written premiums, continues to deliver very strong underwriting results with a 79% combined ratio in the second quarter. In our Commercial segment, our efforts to re-profile the business to improve its profitability in the face of continued market and economic pressures are ongoing. Improvement in the overall level of rate as well as pricing differentiation are early signs of progress.”

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Pretax net investment income for the three months ended June 30, 2010 decreased $154 million as compared with the same period in 2009. The decrease was primarily driven by significantly lower limited partnership results.

After-tax net realized investment results improved $212 million for the three months ended June 30, 2010 as compared with the same period in 2009, driven by significantly lower other-than-temporary impairment (OTTI) losses recognized in earnings.

Net operating income improved $38 million for the six months ended June 30, 2010 as compared with the same period in 2009. This improvement was primarily due to increased favorable net prior year development, partially offset by decreased current accident year underwriting results, including higher catastrophe losses. For the six months ended June 30, 2010, after-tax catastrophe losses were $57 million, as compared to $36 million for the same period in 2009. Our Property & Casualty Operations produced combined ratios of 95.7% and 98.1% in 2010 and 2009.

Pretax net investment income for the six months ended June 30, 2010 improved $16 million as compared with the same period in 2009. The improvement was primarily driven by an investment shift from lower yielding short term assets to higher yielding long term bonds, partially offset by a decrease in limited partnership income.

After-tax net realized investment results improved $578 million for the six months ended June 30, 2010 as compared with the same period in 2009, driven by significantly lower OTTI losses recognized in earnings.

As previously reported, on July 14, 2010, we entered into an agreement with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc., under which our legacy asbestos and environmental pollution (A&E) liabilities will be ceded to NICO. Under the terms of the transaction, effective January 1, 2010 we will cede approximately $1.6 billion of net A&E liabilities to NICO under a retroactive reinsurance agreement with an aggregate limit of $4 billion. We will pay to NICO a reinsurance premium of $2 billion and also transfer to NICO the right to collect billed third party reinsurance receivables with a net book value of approximately $200 million. To secure its obligations, NICO will deposit $2.2 billion in a collateral trust for our benefit. In addition, Berkshire Hathaway Inc. will guarantee the payment obligations of NICO up to the full aggregate reinsurance limit as well as certain of NICO’s performance obligations under the trust agreement. The closing of this transaction is subject to the receipt of required regulatory approvals and the satisfaction of other closing conditions. The closing is expected to occur in the third quarter of 2010 at which time we expect to recognize an after-tax loss of approximately $375 million.

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Business Operating Highlights

CNA Specialty provides professional and management liability as well as other property and casualty coverages and services, both domestically and abroad, through a network of brokers, managing general underwriters and independent agencies.

• Net written premiums decreased $8 million for the three months ended June 30, 2010 as compared with the same period in 2009. The decrease in net written premiums was driven by our architects & engineers and CNA HealthPro lines of business, as current economic and competitive market conditions have led to decreased insured exposures and lower rates. Average rate decreased 2% for the three months ended June 30, 2010 and 2009 for the policies that renewed in each period. Retention rates of 85% and 84% were achieved for those policies that were available for renewal in each period.

• Net operating income improved $17 million for the three months ended June 30, 2010 as compared with the same period in 2009. This improvement was primarily due to increased favorable net prior year development, partially offset by lower net investment income and higher expenses.

• The combined ratio improved 10.8 points for the three months ended June 30, 2010 as compared with the same period in 2009. The loss ratio improved 12.2 points primarily due to favorable net prior year development. The expense ratio increased 1.3 points, primarily related to higher underwriting expenses and commission rates.

• Net income improved $94 million for the three months ended June 30, 2010 as compared with the same period in 2009. This was primarily due to improved net realized investment results and net operating income, as discussed above.

CNA Commercial works with an independent agency distribution system and network of brokers to market a broad range of property and casualty insurance products and services to small, middle-market and large businesses and organizations domestically and abroad.

• Net written premiums decreased $102 million for the three months ended June 30, 2010 as compared with the same period in 2009. Net written premiums were unfavorably impacted by decreased insured exposures and decreased new business as a result of competitive market conditions. Average rate increased 2% for the three months ended June 30, 2010, as compared to flat rates for the three months ended June 30, 2009 for policies that renewed in each period. Retention rates of 79% and 80% were achieved for those policies that were available for renewal in each period.

• Net operating income decreased $43 million for the three months ended June 30, 2010 as compared with the same period in 2009. This decrease was primarily driven by significantly lower net investment income and decreased current accident year underwriting results, partially offset by increased favorable net prior year development.

• The combined ratio improved 6.4 points for the three months ended June 30, 2010 as compared with the same period in 2009. The loss ratio improved 10.5 points primarily due to increased favorable net prior year development, partially offset by increased catastrophe losses and the impact of a higher current accident year non-catastrophe loss ratio. The expense ratio increased 3.1 points primarily related to higher underwriting expenses and the lower net earned premium base.

• Net income improved $65 million for the three months ended June 30, 2010 as compared with the same period in 2009. This was due to improved net realized investment results, partially offset by lower net operating income, as discussed above.

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Life & Group Non-Core primarily includes the results of the life and group lines of business that are in run-off. Net earned premiums relate primarily to the individual and group long term care businesses.

• Net loss increased $2 million for the three months ended June 30, 2010 as compared with the same period in 2009. This was primarily due to less favorable performance on our pension deposit business and decreased net realized investment results, largely offset by the favorable period over period impact of a $28 million after-tax legal accrual recorded in the second quarter of 2009 related to a previously held limited partnership investment.

Corporate & Other Non-Core 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.

• Net results improved $19 million for the three months ended June 30, 2010 as compared with the same period in 2009 primarily due to improved net realized investment results, partially offset by lower net investment income.

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Segment Results for the Three Months Ended June 30, 2010

											Corporate
	CNA		CNA			Total P&C		Life & Group			& Other
($ millions)	Specialty		Commercial			Operations		Non-Core			Non-Core			Total
Net operating income (loss)	$	168	$	124		$	292	$	(18	)	$	(5	)	$	269
Net realized investment gains (losses)		21		(14	)		7		(1	)		7			13
Net income (loss) from continuing operations	$	189	$	110		$	299	$	(19	)	$	2		$	282

Segment Results for the Three Months Ended June 30, 2009

													Corporate
	CNA			CNA			Total P&C			Life & Group			& Other
($ millions)	Specialty			Commercial			Operations			Non-Core			Non-Core			Total
Net operating income (loss)	$	151		$	167		$	318		$	(26	)	$	13		$	305
Net realized investment gains (losses)		(56	)		(122	)		(178	)		9			(30	)		(199	)
Net income (loss) from continuing operations	$	95		$	45		$	140		$	(17	)	$	(17	)	$	106

Segment Results for the Six Months Ended June 30, 2010

										Corporate
	CNA		CNA		Total P&C		Life & Group			& Other
($ millions)	Specialty		Commercial		Operations		Non-Core			Non-Core			Total
Net operating income (loss)	$	296	$	221	$	517	$	(17	)	$	(8	)	$	492
Net realized investment gains (losses)		30		—		30		(5	)		10			35
Net income (loss) from continuing operations	$	326	$	221	$	547	$	(22	)	$	2		$	527

Segment Results for the Six Months Ended June 30, 2009

													Corporate
	CNA			CNA			Total P&C			Life & Group			& Other
($ millions)	Specialty			Commercial			Operations			Non-Core			Non-Core			Total
Net operating income (loss)	$	260		$	238		$	498		$	(48	)	$	4		$	454
Net realized investment losses		(127	)		(242	)		(369	)		(115	)		(59	)		(543	)
Net income (loss) from continuing operations	$	133		$	(4	)	$	129		$	(163	)	$	(55	)	$	(89	)

Property & Casualty Operations Gross Written Premiums

	Three Months Ended June 30				Six Months Ended June 30
($ millions)	2010		2009		2010		2009
CNA Specialty	$	1,043	$	1,031	$	2,093	$	2,124
CNA Commercial		936		1,052		1,848		2,064
Total P&C Operations	$	1,979	$	2,083	$	3,941	$	4,188

Property & Casualty Operations Net Written Premiums

	Three Months Ended June 30				Six Months Ended June 30
($ millions)	2010		2009		2010		2009
CNA Specialty	$	647	$	655	$	1,303	$	1,327
CNA Commercial		838		940		1,667		1,860
Total P&C Operations	$	1,485	$	1,595	$	2,970	$	3,187

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Property & Casualty Calendar Year Loss Ratios

	Three Months Ended June 30						Six Months Ended June 30
	2010			2009			2010			2009
CNA Specialty		48.2	%		60.4	%		54.8	%		60.2	%
CNA Commercial		60.7	%		71.2	%		67.4	%		71.2	%
Total P&C Operations		55.0	%		66.4	%		61.7	%		66.3	%
Property & Casualty Calendar Year Combined Ratios
	Three Months Ended June 30						Six Months Ended June 30
	2010			2009			2010			2009
CNA Specialty		79.0	%		89.8	%		85.7	%		89.5	%
CNA Commercial		98.2	%		104.6	%		103.9	%		104.9	%
Total P&C Operations		89.4	%		98.1	%		95.7	%		98.1	%
CNA Specialty Effect of Catastrophe Impacts and Development-Related Items
	Three Months Ended June 30						Six Months Ended June 30
	2010			2009			2010			2009
Combined ratio excluding the effect of catastrophe impacts and development-related items		97.1	%		94.6	%		96.8	%		94.3	%
Effect of catastrophe impacts		0.5			0.3			0.4			0.3
Effect of development-related items		(18.6	)		(5.1	)		(11.5	)		(5.1	)
Combined ratio		79.0	%		89.8	%		85.7	%		89.5	%
CNA Commercial Effect of Catastrophe Impacts and Development-Related Items
	Three Months Ended June 30						Six Months Ended June 30
	2010			2009			2010			2009
Combined ratio excluding the effect of catastrophe impacts and development-related items		110.5	%		104.3	%		108.3	%		105.3	%
Effect of catastrophe impacts		5.7			4.8			5.2			3.1
Effect of development-related items		(18.0	)		(4.5	)		(9.6	)		(3.5	)
Combined ratio		98.2	%		104.6	%		103.9	%		104.9	%
Property & Casualty Operations Effect of Catastrophe Impacts and Development-Related Items
	Three Months Ended June 30						Six Months Ended June 30
	2010			2009			2010			2009
Combined ratio excluding the effect of catastrophe impacts and development-related items		104.5	%		100.1	%		103.3	%		100.6	%
Effect of catastrophe impacts		3.3			2.9			3.0			1.9
Effect of development-related items		(18.4	)		(4.9	)		(10.6	)		(4.4	)
Combined ratio		89.4	%		98.1	%		95.7	%		98.1	%

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About the Company

Serving businesses and professionals since 1897, CNA is the country’s seventh largest commercial insurance writer and the 13^th largest property and casualty company. CNA’s insurance products include standard commercial lines, specialty lines, surety, marine and other property and casualty coverages. CNA’s services include risk management, information services, underwriting, risk control and claims administration. For more information, please visit CNA at www.cna.com. CNA is a registered trademark of CNA Financial Corporation.

Conference Call and Webcast Information:

A conference call for investors and the professional investment community will be held at 10:00 a.m. (ET) today. On the conference call will be Thomas F. Motamed, Chairman and Chief Executive Officer of CNA Financial Corporation, and other members of senior management. Participants can access the call by dialing (877) 719-9810, or for international callers, (719) 325-4806. The call will also be broadcast live on the internet at http://investor.cna.com or you may go to the investor relations pages of the CNA website (www.cna.com) for further details.

The call is available to the media, but questions will be restricted to investors and the professional investment community. A taped replay of the call will be available through August 9, 2010 by dialing (888) 203-1112, or for international callers, (719) 457-0820. The replay passcode is 9858540. The replay will also be available on CNA’s website. Financial supplement information related to the second quarter results is available on the investor relations pages of the CNA website or by contacting David Adams at (312) 822-2183.

FINANCIAL MEASURES

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 accounting principles generally accepted in the United States of America (GAAP) financial results. 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.

This press release may also reference or contain financial measures that are not in accordance with GAAP. For reconciliations of non-GAAP measures to the most comparable GAAP measures, please refer to CNA’s filings with the Securities and Exchange Commission, as well as the financial supplement, available at www.cna.com.

FORWARD-LOOKING STATEMENT

This press release may include statements which relate to anticipated future events (forward-looking statements) rather than actual present conditions or historical events. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes”, “expects”, “intends”, “anticipates”, “estimates” and similar expressions. Forward-looking statements, by their nature, are subject to a variety of inherent risks and uncertainties that could cause actual results to differ materially from the results projected. Many of these risks and uncertainties cannot be controlled by CNA and, with respect to the agreement to reinsure asbestos and environmental pollution (A&E) liabilities referenced in this press release, include the satisfaction of the conditions to closing, including receipt of regulatory approvals, whether the contemplated transaction will close, whether the other parties to the contemplated transaction will fully perform their obligations to CNA, the uncertainty in estimating loss reserves for A&E claims and the possible continued exposure of CNA to liabilities for A&E claims. For a detailed description of other risks and uncertainties affecting CNA, please refer to CNA’s filings with the Securities and Exchange Commission available at www.cna.com.

Any forward-looking statements made in this press release are made by CNA as of the date of this press release. Further, CNA does not have any obligation to update or revise any forward-looking statement contained in this press release, even if CNA’s expectations or any related events, conditions or circumstances change.

# # #

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EX-99.2

Exhibit 99.2

CNA Financial Corporation

Supplemental Financial Information

June 30, 2010

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 Form 10-K and Quarterly Reports on Form 10-Q.

CNA Financial Corporation
Table of Contents
June 30, 2010

	Page
Definitions and Presentation		i
Statements of Operations		1
Components of Income (Loss) Attributable to CNA 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
Asset-Backed Exposure		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

• Collectively, CNA Financial Corporation and its controlled subsidiaries are referred to as CNA or the Company.

• 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 2009 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. 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 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 volatility generated by the underlying investment strategies.

• Certain immaterial differences are due to rounding.

• N/M = Not Meaningful

• FY = Full Year

i

CNA FINANCIAL CORPORATION
Financial Supplement
Statements of Operations

PERIODS ENDED JUNE 30	Three Months						Fav / (Unfav)			Six Months						Fav / (Unfav)
(In millions)	2010			2009			% Change			2010			2009			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,608		$	1,656			(3	)%	$	3,223		$	3,328			(3	)%
Net investment income		521			675			(23	)		1,111			1,095			1
Net realized investment gains (losses), net of participating policyholders’ interests:
Other-than-temporary impairment (OTTI) losses		(58	)		(484	)		88			(148	)		(1,098	)		87
Portion of OTTI losses recognized in Other comprehensive income		1			89			(99	)		31			89			(65	)
Net OTTI losses recognized in earnings (1)		(57	)		(395	)		86			(117	)		(1,009	)		88
Other net realized investment gains (losses)		86			98			(12	)		180			180			—
Net realized investment gains (losses), net of participating policyholders’ interests		29			(297	)		110			63			(829	)		108
Other revenues		75			62			21			151			140			8
Total revenues		2,233			2,096			7			4,548			3,734			22
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,147			1,294			11			2,455			2,636			7
Amortization of deferred acquisition costs		345			349			1			687			698			2
Other operating expenses		258			291			11			530			542			2
Interest		37			30			(23	)		73			61			(20	)
Total claims, benefits and expenses		1,787			1,964			9			3,745			3,937			5
Income (loss) from continuing operations before income tax		446			132			N/M			803			(203	)		N/M
Income tax (expense) benefit		(145	)		(12	)		N/M			(247	)		138			N/M
Income (loss) from continuing operations		301			120			151			556			(65	)		N/M
Income (loss) from discontinued operations, net of tax		1			(1	)		N/M			1			(1	)		N/M
Net income (loss)		302			119			154			557			(66	)		N/M
Net (income) loss attributable to noncontrolling interests		(19	)		(14	)		(36	)		(29	)		(24	)		(21	)
Net income (loss) attributable to CNA	$	283		$	105			170	%	$	528		$	(90	)		N/M	%

(1) During the second quarter of 2009, the Company adopted updated accounting guidance, which amended the OTTI loss model for fixed maturity securities. Please refer to Note A of the Consolidated Financial Statements within the 2009 Form 10-K for further information.

1

CNA FINANCIAL CORPORATION
Financial Supplement
Components of Income (Loss) Attributable to CNA Common Stockholders, Per Share Data and Return on Equity

PERIODS ENDED JUNE 30	Three Months						Six Months
(In millions, except per share data)	2010			2009			2010			2009
COMPONENTS OF INCOME (LOSS) ATTRIBUTABLE TO CNA COMMON STOCKHOLDERS
Net operating income (loss) from continuing operations attributable to CNA	$	269		$	305		$	492		$	454
Less: 2008 Senior Preferred dividends		(25	)		(32	)		(50	)		(63	)
Net operating income (loss) from continuing operations attributable to CNA common stockholders		244			273			442			391
Net realized investment gains (losses) attributable to CNA common stockholders		13			(199	)		35			(543	)
Income (loss) from continuing operations attributable to CNA common stockholders		257			74			477			(152	)
Income (loss) from discontinued operations attributable to CNA common stockholders		1			(1	)		1			(1	)
Income (loss) attributable to CNA common stockholders	$	258		$	73		$	478		$	(153	)
BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE
Net operating income (loss) from continuing operations attributable to CNA	$	1.00		$	1.14		$	1.83		$	1.68
Less: 2008 Senior Preferred dividends		(0.09	)		(0.12	)		(0.19	)		(0.23	)
Net operating income (loss) from continuing operations attributable to CNA common stockholders		0.91			1.02			1.64			1.45
Net realized investment gains (losses) attributable to CNA common stockholders		0.05			(0.74	)		0.13			(2.01	)
Income (loss) from continuing operations attributable to CNA common stockholders		0.96			0.28			1.77			(0.56	)
Income (loss) from discontinued operations attributable to CNA common stockholders		—			(0.01	)		0.01			(0.01	)
Basic and diluted earnings (loss) per share attributable to CNA common stockholders	$	0.96		$	0.27		$	1.78		$	(0.57	)
WEIGHTED AVERAGE OUTSTANDING COMMON STOCK AND COMMON STOCK EQUIVALENTS
Basic		269.1			269.0			269.1			269.0
Diluted		269.3			269.0			269.3			269.0
RETURN ON EQUITY
Net income (loss) attributable to CNA (1)		9.8	%		5.3	%		9.4	%		(2.3	)%
Net operating income (loss) from continuing operations attributable to CNA (2)		9.5			11.4			8.8			8.4

(1)	Annualized net income (loss) attributable to CNA divided by the average CNA 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 (loss) from continuing operations attributable to CNA divided by the average CNA 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, 2010		December 31, 2009
Total assets	$	55,674	$	55,298
Insurance reserves		37,660		38,263
Debt		2,254		2,303
Total liabilities		43,269		44,132
Preferred stock		1,000		1,000
Accumulated other comprehensive income (loss)		390		(325	)
Noncontrolling interests		526		506
Total CNA stockholders’ equity		11,879		10,660
Book value per common share	$	40.43	$	35.91
Book value per common share excluding AOCI	$	38.98	$	37.12
Outstanding shares of common stock (in millions of shares)		269.1		269.0

THREE MONTHS ENDED
JUNE 30
(In millions)	2010			2009
Net cash flows provided (used) by operating activities (1)	$	217		$	100
Net cash flows provided (used) by investing activities		(154	)		(70	)
Net cash flows provided (used) by financing activities		(86	)		(33	)
Net cash flows provided (used) by operating, investing and financing activities	$	(23	)	$	(3	)

SIX MONTHS ENDED
JUNE 30
(In millions)	2010			2009
Net cash flows provided (used) by operating activities (1)	$	581		$	287
Net cash flows provided (used) by investing activities		(523	)		(220	)
Net cash flows provided (used) by financing activities		(124	)		(59	)
Net cash flows provided (used) by operating, investing and financing activities	$	(66	)	$	8

(1) Operating cash flows for the three and six months ended June 30, 2010 include $(9) million and $(14) million related to discontinued operations. Operating cash flows for the three and six months ended June 30, 2009 include $(3) million and $(12) million related to discontinued operations.

3

CNA FINANCIAL CORPORATION
Financial Supplement
Claim & Claim Adjustment Expense Reserve Rollforward

THREE MONTHS ENDED JUNE 30, 2010
										Life & Group			Corporate &
(In millions)	CNA Specialty			CNA Commercial			P&C Operations			Non-Core			Other Non-Core			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	6,993		$	12,980		$	19,973		$	2,729		$	3,857		$	26,559
Ceded		1,062			2,114			3,176			713			1,448			5,337
Net		5,931			10,866			16,797			2,016			2,409			21,222
Reduction of net reserves due to sale of subsidiary		—			(98	)		(98	)		—			—			(98	)
Net incurred claim & claim adjustment expenses		320			484			804			147			19			970
Net claim & claim adjustment expense payments		(320	)		(696	)		(1,016	)		(124	)		(112	)		(1,252	)
Foreign currency adjustment		(23	)		(27	)		(50	)		(1	)		(2	)		(53	)
Claim & claim adjustment expense reserves, end of period
Net		5,908			10,529			16,437			2,038			2,314			20,789
Ceded		1,008			2,046			3,054			696			1,429			5,179
Gross	$	6,916		$	12,575		$	19,491		$	2,734		$	3,743		$	25,968

SIX MONTHS ENDED JUNE 30, 2010
										Life & Group			Corporate &
(In millions)	CNA Specialty			CNA Commercial			P&C Operations			Non-Core			Other Non-Core			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	6,922		$	13,005		$	19,927		$	2,883		$	4,006		$	26,816
Ceded		1,056			2,156			3,212			863			1,519			5,594
Net		5,866			10,849			16,715			2,020			2,487			21,222
Reduction of net reserves due to sale of subsidiary		—			(98	)		(98	)		—			—			(98	)
Net incurred claim & claim adjustment expenses		722			1,091			1,813			281			41			2,135
Net claim & claim adjustment expense payments		(648	)		(1,281	)		(1,929	)		(262	)		(213	)		(2,404	)
Foreign currency adjustment		(32	)		(32	)		(64	)		(1	)		(1	)		(66	)
Claim & claim adjustment expense reserves, end of period
Net		5,908			10,529			16,437			2,038			2,314			20,789
Ceded		1,008			2,046			3,054			696			1,429			5,179
Gross	$	6,916		$	12,575		$	19,491		$	2,734		$	3,743		$	25,968

4

CNA FINANCIAL CORPORATION
Financial Supplement
Investments by Segment Aggregation

	June 30, 2010					March 31, 2010					December 31, 2009
(In millions)	Book Value			Carrying Value		Book Value			Carrying Value		Book Value			Carrying Value
Property & Casualty and Corporate & Other Non-Core:
Fixed maturities — taxable	$	23,159		$	23,677	$	23,259		$	23,459	$	21,295		$	21,158
Fixed maturities — tax-exempt		2,916			2,880		3,780			3,721		4,513			4,446
Equities		221			220		316			316		298			292
Short term investments		2,880			2,881		2,330			2,334		3,789			3,792
Limited partnership investments		2,056			2,056		1,941			1,941		1,777			1,777
Mortgage loans & other		14			15		3			3		3			3
Total investments	$	31,246		$	31,729	$	31,629		$	31,774	$	31,675		$	31,468
Net receivable/(payable)	$	129				$	(93	)			$	(91	)
Securities lending collateral		—					—					—
Life & Group Non-Core:
Fixed maturities — taxable	$	7,763		$	8,485	$	7,468		$	7,943	$	7,129		$	7,425
Fixed maturities — tax-exempt		2,572			2,523		2,678			2,588		2,665			2,583
Equities		319			329		335			365		335			352
Short term investments		159			159		150			150		156			157
Limited partnership investments		3			3		6			6		10			10
Mortgage loans & other		—			—		—			—		1			1
Total investments	$	10,816		$	11,499	$	10,637		$	11,052	$	10,296		$	10,528
Net receivable/(payable)	$	(4	)			$	(6	)			$	—
Securities lending collateral		—					—					—
Total investments	$	42,062		$	43,228	$	42,266		$	42,826	$	41,971		$	41,996
Total net receivable/(payable)	$	125				$	(99	)			$	(91	)
Total securities lending collateral		—					—					—

5

CNA FINANCIAL CORPORATION
Financial Supplement
Asset-Backed Exposure
As of June 30, 2010
(In millions)

Invested Assets Fair Value By Segment

	P&C and
	Corporate & Other				Life & Group
	Non-Core		%		Non-Core		%		Total		%
RMBS	$	5,927		18.7	$	395		3.4	$	6,322		14.6
CMBS		766		2.4		225		2.0		991		2.3
Other ABS		678		2.1		55		0.5		733		1.7
Total asset-backed exposure		7,371		23.2		675		5.9		8,046		18.6
Other taxable fixed maturities		16,306		51.4		7,810		67.9		24,116		55.8
Tax exempt fixed maturities		2,880		9.1		2,523		21.9		5,403		12.5
All other		5,172		16.3		491		4.3		5,663		13.1
Total investments	$	31,729		100.0	$	11,499		100.0	$	43,228		100.0
Sub-prime (Included in RMBS Above)	$	520		1.6	$	7		0.1	$	527		1.2
Alt-A (Included in RMBS Above)	$	629		2.0	$	65		0.6	$	694		1.6

Invested Assets Amortized Cost By Segment

	P&C and
	Corporate & Other				Life & Group
	Non-Core		%		Non-Core		%		Total		%
RMBS	$	6,102		19.5	$	424		3.9	$	6,526		15.5
CMBS		815		2.6		237		2.2		1,052		2.5
Other ABS		684		2.2		49		0.5		733		1.7
Total asset-backed exposure		7,601		24.3		710		6.6		8,311		19.7
Other taxable fixed maturities		15,558		49.8		7,053		65.2		22,611		53.8
Tax exempt fixed maturities		2,916		9.3		2,572		23.8		5,488		13.0
All other		5,171		16.6		481		4.4		5,652		13.5
Total investments	$	31,246		100.0	$	10,816		100.0	$	42,062		100.0
Sub-prime (Included in RMBS Above)	$	588		1.9	$	6		0.1	$	594		1.4
Alt-A (Included in RMBS Above)	$	683		2.2	$	72		0.7	$	755		1.8

RMBS/CMBS/Other ABS Distribution

																	% of Asset-Backed
	RMBS				CMBS				Other ABS				Total				Exposure				% of Total Investments
	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	$	3,198	$	3,088	$	31	$	30	$	—	$	—	$	3,229	$	3,118		40.2		37.5		7.5		7.4
AAA		1,276		1,360		394		417		569		567		2,239		2,344		27.8		28.2		5.2		5.6
AA		246		281		218		218		52		53		516		552		6.4		6.7		1.2		1.3
A		165		189		236		261		29		28		430		478		5.3		5.8		1.0		1.1
BBB		244		250		82		100		67		69		393		419		4.9		5.0		0.9		1.0
<BBB & Equity Tranches		1,193		1,358		30		26		16		16		1,239		1,400		15.4		16.8		2.8		3.3
Total RMBS/CMBS/other ABS	$	6,322	$	6,526	$	991	$	1,052	$	733	$	733	$	8,046	$	8,311		100.0		100.0		18.6		19.7

(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.

(2)

The ratings presented are based on a ratings methodology that takes into account ratings from the three major providers, Standard & Poor’s, Moody’s Investors Service, Inc. and Fitch Ratings in that order of preference. If a security is not rated by any of the three, an internal rating is formulated. For securities with credit support from third party guarantees, the rating reflects the greater of the underlying rating of the issuer or the insured rating.

RMBS — Residential mortgage-backed securities

CMBS — Commercial mortgage-backed securities

Other ABS — Other asset-backed securities

6

CNA FINANCIAL CORPORATION
Financial Supplement
Asset-Backed Exposure
As of June 30, 2010
(In millions)

RMBS Sub-Prime Fair Value Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	14		11.2	$	—		—	$	—		—	$	—		—	$	—		—	$	14		2.7
2008		—		—		—		—		—		—		—		—		—		—		—		—
2007		—		—		35		21.7		—		—		1		2.3		12		7.0		48		9.1
2006		68		54.4		50		31.1		9		33.3		32		74.4		102		59.7		261		49.5
2005		32		25.6		41		25.5		—		—		—		—		6		3.5		79		15.0
2004		7		5.6		21		13.0		2		7.4		10		23.3		21		12.3		61		11.6
2003 & prior		4		3.2		14		8.7		16		59.3		—		—		30		17.5		64		12.1
Total sub-prime	$	125		100.0	$	161		100.0	$	27		100.0	$	43		100.0	$	171		100.0	$	527		100.0

RMBS Sub-Prime Amortized Cost Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	14		9.9	$	—		—	$	—		—	$	—		—	$	—		—	$	14		2.4
2008		—		—		—		—		—		—		—		—		—		—		—		—
2007		—		—		36		19.3		—		—		1		2.4		13		6.8		50		8.4
2006		80		56.3		56		29.9		10		29.4		33		80.5		110		57.9		289		48.6
2005		35		24.6		55		29.4		—		—		—		—		10		5.3		100		16.8
2004		8		5.6		23		12.3		2		5.9		7		17.1		27		14.2		67		11.3
2003 & prior		5		3.6		17		9.1		22		64.7		—		—		30		15.8		74		12.5
Total sub-prime	$	142		100.0	$	187		100.0	$	34		100.0	$	41		100.0	$	190		100.0	$	594		100.0

RMBS Alt-A Fair Value Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—
2008		—		—		—		—		—		—		—		—		—		—		—		—
2007		—		—		—		—		—		—		—		—		39		31.7		39		5.6
2006		—		—		11		17.7		—		—		—		—		65		52.9		76		11.0
2005		25		6.3		11		17.7		—		—		57		60.0		18		14.6		111		16.0
2004		297		74.2		25		40.4		13		92.9		38		40.0		1		0.8		374		53.9
2003 & prior		78		19.5		15		24.2		1		7.1		—		—		—		—		94		13.5
Total Alt-A	$	400		100.0	$	62		100.0	$	14		100.0	$	95		100.0	$	123		100.0	$	694		100.0

RMBS Alt-A Amortized Cost Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—
2008		—		—		—		—		—		—		—		—		—		—		—		—
2007		—		—		—		—		—		—		—		—		53		37.1		53		7.0
2006		—		—		11		15.7		—		—		—		—		70		48.9		81		10.7
2005		29		6.8		14		20.0		—		—		61		60.4		19		13.3		123		16.3
2004		316		74.4		27		38.6		15		93.7		40		39.6		1		0.7		399		52.9
2003 & prior		80		18.8		18		25.7		1		6.3		—		—		—		—		99		13.1
Total Alt-A	$	425		100.0	$	70		100.0	$	16		100.0	$	101		100.0	$	143		100.0	$	755		100.0

7

CNA FINANCIAL CORPORATION
Financial Supplement
Asset-Backed Exposure
As of June 30, 2010
(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	$	2,839	$	2,743	$	351	$	337	$	6	$	6	$	—	$	—	$	2	$	2	$	3,198	$	3,088
AAA		730		796		142		147		54		59		4		4		346		354		1,276		1,360
AA		88		104		—		—		63		64		77		95		18		18		246		281
A		129		151		19		20		6		6		4		5		7		7		165		189
BBB		216		222		—		—		27		27		1		1		—		—		244		250
<BBB & Equity Tranches		607		687		68		70		457		535		42		48		19		18		1,193		1,358
Total RMBS	$	4,609	$	4,703	$	580	$	574	$	613	$	697	$	128	$	153	$	392	$	399	$	6,322	$	6,526
Included in Total RMBS:
MBS Pass-Thru	$	1,366	$	1,332	$	30	$	28	$	6	$	6	$	—	$	—	$	8	$	6	$	1,410	$	1,372
Structured		3,243		3,371		550		546		607		691		128		153		384		393		4,912		5,154
Total RMBS	$	4,609	$	4,703	$	580	$	574	$	613	$	697	$	128	$	153	$	392	$	399	$	6,322	$	6,526
Included in Total RMBS:
Sub-prime	$	270	$	311	$	—	$	—	$	112	$	114	$	128	$	153	$	17	$	16	$	527	$	594
Alt-A		582		633		14		16		78		87		—		—		20		19		694		755
Prime		3,757		3,759		566		558		423		496		—		—		355		364		5,101		5,177
Total RMBS	$	4,609	$	4,703	$	580	$	574	$	613	$	697	$	128	$	153	$	392	$	399	$	6,322	$	6,526

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
U.S. Government Agencies	$	10	$	10	$	21	$	20	$	31	$	30
AAA		205		204		189		213		394		417
AA		107		107		111		111		218		218
A		88		113		148		148		236		261
BBB		14		14		68		86		82		100
<BBB & Equity Tranches		13		15		17		11		30		26
Total CMBS	$	437	$	463	$	554	$	589	$	991	$	1,052
Included in Total CMBS:
Pass-Thru	$	—	$	—	$	—	$	—	$	—	$	—
Structured		437		463		554		589		991		1,052
Total CMBS	$	437	$	463	$	554	$	589	$	991	$	1,052

ARM — Adjustable rate mortgages

MBS — Mortgage-backed securities

8

CNA FINANCIAL CORPORATION
Financial Supplement
Asset-Backed Exposure
As of June 30, 2010
(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	$	312	$	305	$	107	$	121	$	150	$	141	$	569	$	567
AA		—		—		—		—		52		53		52		53
A		22		21		—		—		7		7		29		28
BBB		21		21		—		—		46		48		67		69
<BBB & Equity Tranches		—		—		—		—		16		16		16		16
Total other ABS	$	355	$	347	$	107	$	121	$	271	$	265	$	733	$	733
Included in Total other ABS:
Pass-Thru	$	21	$	21	$	—	$	—	$	—	$	—	$	21	$	21
Structured		334		326		107		121		271		265		712		712
Total other ABS	$	355	$	347	$	107	$	121	$	271	$	265	$	733	$	733

9

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

THREE MONTHS ENDED	CNA Specialty									CNA Commercial									P&C Operations
JUNE 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2010			2009			% Change			2010			2009			% Change			2010			2009			% Change
Gross written premiums	$	1,043		$	1,031			1	%	$	936		$	1,052			(11	)%	$	1,979		$	2,083			(5	)%
Net written premiums		647			655			(1	)		838			940			(11	)		1,485			1,595			(7	)
Net earned premiums		665			668			—			797			837			(5	)		1,462			1,505			(3	)
Net investment income		125			157			(20	)		181			283			(36	)		306			440			(30	)
Other revenues		53			45			18			16			19			(16	)		69			64			8
Total operating revenues		843			870			(3	)		994			1,139			(13	)		1,837			2,009			(9	)
Claims, benefits and expenses:
Net incurred claims and benefits		320			404			21			484			596			19			804			1,000			(20	)
Policyholders’ dividends		3			3			—			6			(1	)		N/M			9			2			N/M
Amortization of deferred acquisition costs		154			152			(1	)		186			193			4			340			345			1
Other insurance related expenses		47			42			(12	)		107			89			(20	)		154			131			(18	)
Other expenses		50			39			(28	)		11			23			52			61			62			2
Total claims, benefits and expenses		574			640			10			794			900			12			1,368			1,540			11
Operating income (loss) from continuing operations before income tax		269			230			17			200			239			(16	)		469			469			—
Income tax (expense) benefit on operating income (loss)		(90	)		(71	)		(27	)		(68	)		(66	)		(3	)		(158	)		(137	)		(15	)
Net operating (income) loss, after-tax, attributable to noncontrolling interests		(11	)		(8	)		(38	)		(8	)		(6	)		(33	)		(19	)		(14	)		(36	)
Net operating income (loss) from continuing operations attributable to CNA		168			151			11			124			167			(26	)		292			318			(8	)
Net realized investment gains (losses), net of participating policyholders’ interests		32			(83	)		139			(13	)		(183	)		93			19			(266	)		107
Income tax (expense) benefit on net realized investment gains (losses)		(11	)		27			(141	)		(1	)		61			(102	)		(12	)		88			(114	)
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			N/M			—			—			N/M			—			—			N/M
Net realized investment gains (losses) attributable to CNA		21			(56	)		138			(14	)		(122	)		89			7			(178	)		104
Net income (loss) from continuing operations attributable to CNA	$	189		$	95			99	%	$	110		$	45			144	%	$	299		$	140			114	%
FINANCIAL RATIOS
Loss & LAE		48.2	%		60.4	%					60.7	%		71.2	%					55.0	%		66.4	%
Acquisition expense		19.4			18.8						17.9			16.0						18.5			17.2
Underwriting expense		10.9			10.2						18.8			17.6						15.3			14.3
Expense		30.3			29.0						36.7			33.6						33.8			31.5
Dividend		0.5			0.4						0.8			(0.2	)					0.6			0.2
Combined ratio		79.0	%		89.8	%					98.2	%		104.6	%					89.4	%		98.1	%
RATIO IMPACTS
Impact of catastrophes
Pretax net accident year catastrophe losses incurred	$	3		$	3					$	45		$	40					$	48		$	43
Impact on loss & LAE ratio		0.5	%		0.3	%					5.7	%		4.8	%					3.3	%		2.9	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & ALAE reserve development	$	(125	)	$	(35	)				$	(175	)	$	(85	)				$	(300	)	$	(120	)
Prior year premium development		1			2						35			56						36			58
Other (1)		—			—						5			5						5			5
Total development & other	$	(124	)	$	(33	)				$	(135	)	$	(24	)				$	(259	)	$	(57	)
Impact of development & other on loss & LAE ratio		(18.6	)%		(5.1	)%					(18.0	)%		(4.5	)%					(18.4	)%		(4.9	)%

(1) 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)	2010			2009			2010			2009			% Change			2010			2009			% Change			2010			2009			% Change
Net earned premiums	$	1,462		$	1,505		$	146		$	148			(1	)%	$	—		$	3			N/M	%	$	1,608		$	1,656			(3	)%
Net investment income		306			440			174			168			4			41			67			(39	)		521			675			(23	)
Other revenues		69			64			2			(1	)		N/M			4			(1	)		N/M			75			62			21
Total operating revenues		1,837			2,009			322			315			2			45			69			(35	)		2,204			2,393			(8	)
Claims, benefits and expenses:
Net incurred claims and benefits		804			1,000			314			269			(17	)		19			23			17			1,137			1,292			12
Policyholders’ dividends		9			2			1			—			N/M			—			—			N/M			10			2			N/M
Amortization of deferred acquisition costs		340			345			5			4			(25	)		—			—			N/M			345			349			1
Other insurance related expenses		154			131			45			47			4			(2	)		—			N/M			197			178			(11	)
Other expenses		61			62			—			51			N/M			37			30			(23	)		98			143			31
Total claims, benefits and expenses		1,368			1,540			365			371			2			54			53			(2	)		1,787			1,964			9
Operating income (loss) from continuing operations before income tax		469			469			(43	)		(56	)		23			(9	)		16			(156	)		417			429			(3	)
Income tax (expense) benefit on operating income (loss)		(158	)		(137	)		25			30			(17	)		4			(3	)		N/M			(129	)		(110	)		(17	)
Net operating (income) loss, after-tax, attributable to noncontrolling interests		(19	)		(14	)		—			—			N/M			—			—			N/M			(19	)		(14	)		(36	)
Net operating income (loss) from continuing operations attributable to CNA		292			318			(18	)		(26	)		31			(5	)		13			(138	)		269			305			(12	)
Net realized investment gains (losses), net of participating policyholders’ interests		19			(266	)		(1	)		13			(108	)		11			(44	)		125			29			(297	)		110
Income tax (expense) benefit on net realized investment gains (losses)		(12	)		88			—			(4	)		N/M			(4	)		14			(129	)		(16	)		98			(116	)
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			—			—			N/M			—			—			N/M			—			—			N/M
Net realized investment gains (losses) attributable to CNA		7			(178	)		(1	)		9			(111	)		7			(30	)		123			13			(199	)		107
Net income (loss) from continuing operations attributable to CNA	$	299		$	140		$	(19	)	$	(17	)		(12	)%	$	2		$	(17	)		112	%	$	282		$	106			166	%

11

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

SIX MONTHS ENDED	CNA Specialty									CNA Commercial									P&C Operations
JUNE 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2010			2009			% Change			2010			2009			% Change			2010			2009			% Change
Gross written premiums	$	2,093		$	2,124			(1	)%	$	1,848		$	2,064			(10	)%	$	3,941		$	4,188			(6	)%
Net written premiums		1,303			1,327			(2	)		1,667			1,860			(10	)		2,970			3,187			(7	)
Net earned premiums		1,319			1,327			(1	)		1,613			1,700			(5	)		2,932			3,027			(3	)
Net investment income		272			242			12			399			426			(6	)		671			668			—
Other revenues		105			100			5			34			34			—			139			134			4
Total operating revenues		1,696			1,669			2			2,046			2,160			(5	)		3,742			3,829			(2	)
Claims, benefits and expenses:
Net incurred claims and benefits		722			799			10			1,086			1,210			10			1,808			2,009			10
Policyholders’ dividends		4			6			33			7			2			N/M			11			8			(38	)
Amortization of deferred acquisition costs		309			300			(3	)		369			388			5			678			688			1
Other insurance related expenses		94			83			(13	)		214			183			(17	)		308			266			(16	)
Other expenses		94			88			(7	)		28			39			28			122			127			4
Total claims, benefits and expenses		1,223			1,276			4			1,704			1,822			6			2,927			3,098			6
Operating income (loss) from continuing operations before income tax		473			393			20			342			338			1			815			731			11
Income tax (expense) benefit on operating income (loss)		(158	)		(117	)		(35	)		(111	)		(91	)		(22	)		(269	)		(208	)		(29	)
Net operating (income) loss, after-tax, attributable to noncontrolling interests		(19	)		(16	)		(19	)		(10	)		(9	)		(11	)		(29	)		(25	)		(16	)
Net operating income (loss) from continuing operations attributable to CNA		296			260			14			221			238			(7	)		517			498			4
Net realized investment gains (losses), net of participating policyholders’ interests		45			(192	)		123			8			(369	)		102			53			(561	)		109
Income tax (expense) benefit on net realized investment gains (losses)		(15	)		65			(123	)		(8	)		126			(106	)		(23	)		191			(112	)
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			N/M			—			1			N/M			—			1			N/M
Net realized investment gains (losses) attributable to CNA		30			(127	)		124			—			(242	)		N/M			30			(369	)		108
Net income (loss) from continuing operations attributable to CNA	$	326		$	133			145	%	$	221		$	(4	)		N/M	%	$	547		$	129			N/M	%
FINANCIAL RATIOS
Loss & LAE		54.8	%		60.2	%					67.4	%		71.2	%					61.7	%		66.3	%
Acquisition expense		19.3			18.5						18.0			16.5						18.6			17.4
Underwriting expense		11.3			10.4						18.1			17.1						15.0			14.1
Expense		30.6			28.9						36.1			33.6						33.6			31.5
Dividend		0.3			0.4						0.4			0.1						0.4			0.3
Combined ratio		85.7	%		89.5	%					103.9	%		104.9	%					95.7	%		98.1	%
RATIO IMPACTS
Impact of catastrophes
Pretax net accident year catastrophe losses incurred	$	5		$	4					$	83		$	52					$	88		$	56
Impact on loss & LAE ratio		0.4	%		0.3	%					5.2	%		3.1	%					3.0	%		1.9	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & ALAE reserve development	$	(150	)	$	(64	)				$	(203	)	$	(127	)				$	(353	)	$	(191	)
Prior year premium development		(3	)		(3	)					56			76						53			73
Other (1)		—			(1	)					5			10						5			9
Total development & other	$	(153	)	$	(68	)				$	(142	)	$	(41	)				$	(295	)	$	(109	)
Impact of development & other on loss & LAE ratio		(11.5	)%		(5.1	)%					(9.6	)%		(3.5	)%					(10.6	)%		(4.4	)%

(1) 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)	2010			2009			2010			2009			% Change			2010			2009			% Change			2010			2009			% Change
Net earned premiums	$	2,932		$	3,027		$	291		$	298			(2	)%	$	—		$	3			N/M	%	$	3,223		$	3,328			(3	)%
Net investment income		671			668			349			327			7			91			100			(9	)		1,111			1,095			1
Other revenues		139			134			6			5			20			6			1			N/M			151			140			8
Total operating revenues		3,742			3,829			646			630			3			97			104			(7	)		4,485			4,563			(2	)
Claims, benefits and expenses:
Net incurred claims and benefits		1,808			2,009			595			574			(4	)		40			44			9			2,443			2,627			7
Policyholders’ dividends		11			8			1			1			—			—			—			N/M			12			9			(33	)
Amortization of deferred acquisition costs		678			688			9			10			10			—			—			N/M			687			698			2
Other insurance related expenses		308			266			96			93			(3	)		(1	)		—			N/M			403			359			(12	)
Other expenses		122			127			6			57			89			72			60			(20	)		200			244			18
Total claims, benefits and expenses		2,927			3,098			707			735			4			111			104			(7	)		3,745			3,937			5
Operating income (loss) from continuing operations before income tax		815			731			(61	)		(105	)		42			(14	)		—			N/M			740			626			18
Income tax (expense) benefit on operating income (loss)		(269	)		(208	)		44			57			(23	)		6			4			50			(219	)		(147	)		(49	)
Net operating (income) loss, after-tax, attributable to noncontrolling interests		(29	)		(25	)		—			—			N/M			—			—			N/M			(29	)		(25	)		(16	)
Net operating income (loss) from continuing operations attributable to CNA		517			498			(17	)		(48	)		65			(8	)		4			N/M			492			454			8
Net realized investment gains (losses), net of participating policyholders’ interests		53			(561	)		(5	)		(177	)		97			15			(91	)		116			63			(829	)		108
Income tax (expense) benefit on net realized investment gains (losses)		(23	)		191			—			62			N/M			(5	)		32			(116	)		(28	)		285			(110	)
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			1			—			—			N/M			—			—			N/M			—			1			N/M
Net realized investment gains (losses) attributable to CNA		30			(369	)		(5	)		(115	)		96			10			(59	)		117			35			(543	)		106
Net income (loss) from continuing operations attributable to CNA	$	547		$	129		$	(22	)	$	(163	)		87	%	$	2		$	(55	)		104	%	$	527		$	(89	)		N/M	%

13

CNA FINANCIAL CORPORATION
Financial Supplement
Components of Pretax Net Investment Income

	CNA Specialty
(In millions)	1Q09			2Q09		3Q09		4Q09			2009			1Q10		2Q10			YTD2010
Income (loss) from limited partnerships	$	(19	)	$	47	$	41	$	23		$	92		$	23	$	(1	)	$	22
Income (loss) from trading portfolio		—			2		4		1			7			1		1			2
Other investment income		104			108		109		106			427			123		125			248
Net investment income	$	85		$	157	$	154	$	130		$	526		$	147	$	125		$	272
	CNA Commercial
	1Q09			2Q09		3Q09		4Q09			2009			1Q10		2Q10			YTD2010
Income (loss) from limited partnerships	$	(39	)	$	95	$	83	$	44		$	183		$	39	$	(2	)	$	37
Income (loss) from trading portfolio		—			5		6		2			13			2		1			3
Other investment income		182			183		187		174			726			177		182			359
Net investment income	$	143		$	283	$	276	$	220		$	922		$	218	$	181		$	399
	P&C Operations
	1Q09			2Q09		3Q09		4Q09			2009			1Q10		2Q10			YTD2010
Income (loss) from limited partnerships	$	(58	)	$	142	$	124	$	67		$	275		$	62	$	(3	)	$	59
Income (loss) from trading portfolio		—			7		10		3			20			3		2			5
Other investment income		286			291		296		280			1,153			300		307			607
Net investment income	$	228		$	440	$	430	$	350		$	1,448		$	365	$	306		$	671
	Life & Group Non-Core
	1Q09			2Q09		3Q09		4Q09			2009			1Q10		2Q10			YTD2010
Income (loss) from limited partnerships	$	(2	)	$	—	$	1	$	(2	)	$	(3	)	$	—	$	(3	)	$	(3	)
Income (loss) from trading portfolio		—			—		—		—			—			—		—			—
Other investment income		161			168		168		170			667			175		177			352
Net investment income	$	159		$	168	$	169	$	168		$	664		$	175	$	174		$	349
	Corporate & Other Non-Core
	1Q09			2Q09		3Q09		4Q09			2009			1Q10		2Q10			YTD2010
Income (loss) from limited partnerships	$	(10	)	$	23	$	20	$	10		$	43		$	10	$	2		$	12
Income (loss) from trading portfolio		—			1		2		—			3			1		—			1
Other investment income		43			43		39		37			162			39		39			78
Net investment income	$	33		$	67	$	61	$	47		$	208		$	50	$	41		$	91
	Total Operations
	1Q09			2Q09		3Q09		4Q09			2009			1Q10		2Q10			YTD2010
Income (loss) from limited partnerships	$	(70	)	$	165	$	145	$	75		$	315		$	72	$	(4	)	$	68
Income (loss) from trading portfolio		—			8		12		3			23			4		2			6
Other investment income		490			502		503		487			1,982			514		523			1,037
Net investment income	$	420		$	675	$	660	$	565		$	2,320		$	590	$	521		$	1,111

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)	2010			2009			% Change			2010			2009			% Change
Combined Continental Casualty Companies
Gross written premiums	$	1,901		$	2,001			(5	)%	$	3,763		$	4,017			(6	)%
Net written premiums		1,412			1,515			(7	)		2,814			3,032			(7	)
Net earned premiums		1,239			1,292			(4	)		2,456			2,734			(10	)
Claim and claim adjustment expenses		895			1,064			16			1,956			2,120			8
Acquisition expenses		226			259			13			465			502			7
Underwriting expenses		199			221			10			412			434			5
Policyholders’ dividends		3			3			—			6			7			14
Underwriting loss		(84	)		(255	)		67			(383	)		(329	)		(16	)
Net investment income		414			436			(5	)		827			817			1
Other income (loss)		3			12			(75	)		13			16			(19	)
Income tax (expense) benefit		(91	)		(22	)		N/M			(108	)		(57	)		(89	)
Net realized gains (losses)		93			(303	)		131			103			(835	)		112
Net income (loss)	$	335		$	(132	)		N/M	%	$	452		$	(388	)		N/M	%
Financial Ratios
Loss and LAE		72.2	%		82.4	%					79.6	%		77.5	%
Acquisition expense		16.0			17.1						16.5			16.5
Underwriting expense		14.1			14.5						14.8			14.4
Expense		30.1			31.6						31.3			30.9
Dividend		0.3			0.3						0.2			0.3
Combined ratio		102.6	%		114.3	%					111.1	%		108.7	%

SUPPLEMENTAL STATUTORY DATA
	(Preliminary)
(In millions)	June 30, 2010		December 31, 2009
Combined Continental Casualty Companies
Statutory surplus (1)	$	9,902	$	9,338
Life Company
Statutory surplus	$	476	$	448

(1) Represents the combined statutory surplus of Continental Casualty Company and its subsidiaries, including the Life Company, as determined in accordance with statutory accounting practices.

15

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Operations
Loss & LAE Ratio Analysis

	CNA Specialty
	2010 YTD			2009 FY			2009 FY
	Evaluated at			Evaluated at			Evaluated at
	6/30/10			12/31/09			6/30/10
Gross Accident Year		62.7	%		65.6	%		66.0	%
Impact of Reinsurance		3.6			(0.4	)		0.2
Net Accident Year		66.3			65.2			66.2	%
Impact of Development and Other (1)		(11.5	)		(8.3	)
Net Calendar Year		54.8	%		56.9	%

	CNA Commercial
	2010 YTD			2009 FY			2009 FY
	Evaluated at			Evaluated at			Evaluated at
	6/30/10			12/31/09			6/30/10
Gross Accident Year		74.1	%		71.3	%		71.0	%
Impact of Reinsurance		2.9			3.3			4.0
Net Accident Year		77.0			74.6			75.0	%
Impact of Development and Other (1)		(9.6	)		(5.0	)
Net Calendar Year		67.4	%		69.6	%

	P&C Operations
	2010 YTD			2009 FY			2009 FY
	Evaluated at			Evaluated at			Evaluated at
	6/30/10			12/31/09			6/30/10
Gross Accident Year		68.0	%		68.3	%		68.4	%
Impact of Reinsurance		4.3			2.2			2.8
Net Accident Year		72.3			70.5			71.2	%
Impact of Development and Other (1)		(10.6	)		(6.5	)
Net Calendar Year		61.7	%		64.0	%

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

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