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) November 1, 2010

CNA FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-5823	36-6169860
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer 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.

On November 1, 2010, the registrant issued a press release and posted on its website (www.cna.com) a financial supplement providing information on its results of operations for the third 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: November 1, 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 November 1, 2010, providing information on the third quarter 2010 results of operations.
99.2	CNA Financial Corporation financial supplement, posted on its website November 1, 2010, providing supplemental financial information on the third 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 THIRD QUARTER 2010 RESULTS:
NET LOSS OF $140 MILLION, INCLUDING LOSS OF $365 MILLION
FROM LOSS PORTFOLIO TRANSFER
P&C COMBINED RATIO OF 97.9%

BOOK VALUE PER COMMON SHARE OF $42.76,
AN INCREASE OF 6% FROM JUNE 30, 2010

CHICAGO, November 1, 2010 — CNA Financial Corporation (NYSE: CNA) today announced third quarter 2010 results, which included a net operating loss of $158 million, or $0.66 per common share, and net loss of $140 million, or $0.59 per common share. Third quarter 2010 results included an after-tax net loss of $365 million related to the previously announced agreement to cede Asbestos and Environmental Pollution liabilities to National Indemnity Company (Loss Portfolio Transfer or LPT); $344 million was recognized in continuing operations and $21 million was recognized in discontinued operations.

Property & Casualty Operations combined ratio for the third quarter was 97.9%. Book value per common share was $42.76 at September 30, 2010, as compared to $40.43 at June 30, 2010 and $35.91 at December 31, 2009.

	Results for the Three Months						Results for the Nine Months
	Ended September 30 (a)						Ended September 30 (a)
($ millions)	2010			2009			2010			2009
Net operating income (loss):
Net operating income before LPT	$	186		$	331		$	678		$	785
Net loss related to LPT		(344	)		—			(344	)		—
Net operating income (loss)		(158	)		331			334			785
Net realized investment gains (losses)		40			(67	)		75			(610	)
Net income (loss) from continuing operations		(118	)		264			409			175
Net loss from discontinued operations		(22	)		(1	)		(21	)		(2	)
Net income (loss)	$	(140	)	$	263		$	388		$	173

(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 CNAF’s Annual Report on Form 10-K for the year ended December 31, 2009 for further discussion of this measure.

Page 1 of 8

Earnings (Loss) Per Share Attributable to Common Stockholders

	Results for the						Results for the
	Three Months						Nine Months
	Ended September 30						Ended September 30
	2010			2009			2010			2009
Net operating income (loss):
Net operating income before LPT	$	0.69		$	1.23		$	2.52		$	2.92
Net loss related to LPT		(1.28	)		—			(1.28	)		—
Net operating income (loss)		(0.59	)		1.23			1.24			2.92
2008 Senior Preferred dividend		(0.07	)		(0.12	)		(0.25	)		(0.35	)
Net operating income (loss) attributable to CNA common stockholders		(0.66	)		1.11			0.99			2.57
Net realized investment gains (losses)		0.15			(0.25	)		0.28			(2.27	)
Net income (loss) from continuing operations		(0.51	)		0.86			1.27			0.30
Net loss from discontinued operations		(0.08	)		—			(0.08	)		(0.01	)
Net income (loss) attributable to CNA common stockholders	$	(0.59	)	$	0.86		$	1.19		$	0.29

Net operating results for the three months ended September 30, 2010 decreased $489 million as compared with the same period in 2009. Excluding the loss associated with the Loss Portfolio Transfer, net operating income decreased $145 million. Net operating income for our core Property & Casualty Operations decreased $19 million. Our core segments were unfavorably impacted by lower net investment income, driven by less favorable limited partnership income, partially offset by increased favorable net prior year development. Net operating results for our non-core segments decreased $126 million, which includes the favorable impact in 2009 of a $61 million after-tax gain arising from a settlement that resolved litigation related to the placement of personal accident reinsurance. For the three months ended September 30, 2010, catastrophe losses were $8 million after-tax, as compared to catastrophe losses of $15 million after-tax for the same period in 2009. Our Property & Casualty Operations produced third quarter combined ratios of 97.9% and 101.0% in 2010 and 2009.

“We are pleased to report another quarter of steady performance and continued focus on our profit-improvement strategies. Operating income before the impact of the Loss Portfolio Transfer was $186 million. Our Property & Casualty Operations combined ratio was 97.9%. Rates on our renewal business were slightly negative, however, retention remained strong and we wrote more new business than we lost,” said Thomas F. Motamed, Chairman and Chief Executive Officer of CNA Financial Corporation.

“CNA’s balance sheet and capital position remain very strong. Our book value per common share increased 19% to $42.76 from year end 2009. We are also very pleased to have completed the Loss Portfolio Transfer. We believe the transaction enhances CNA’s financial stability by substantially eliminating our exposures to legacy asbestos and pollution liabilities.”

Pretax net investment income for the three months ended September 30, 2010 decreased $79 million as compared with the same period in 2009. The decrease was driven primarily by less favorable income from our limited partnership investments.

After-tax net realized investment results improved $107 million for the three months ended September 30, 2010 as compared with the same period in 2009, driven by lower other-than-temporary impairment (OTTI) losses recognized in earnings.

Net loss from discontinued operations increased $21 million for the three months ended September 30, 2010 as compared with the same period in 2009, due to the loss associated with the Loss Portfolio Transfer.

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Net operating income decreased $451 million for the nine months ended September 30, 2010 as compared with the same period in 2009. Excluding the loss associated with the Loss Portfolio Transfer, net operating income decreased $107 million. This decrease was primarily due to the same reasons discussed above in the three month comparison. Additionally, results for our core segments were unfavorably impacted by decreased current accident year underwriting results, including higher catastrophe losses. For the nine months ended September 30, 2010, after-tax catastrophe losses were $65 million, as compared to $51 million for the same period in 2009. Our Property & Casualty Operations produced combined ratios of 96.5% and 99.1% in 2010 and 2009.

Pretax net investment income for the nine months ended September 30, 2010 decreased $63 million as compared with the same period in 2009. The decrease was primarily driven by less favorable income from our limited partnership investments, partially offset by the impact of reducing our short term and tax-exempt assets and shifting to higher yielding taxable long term bonds.

After-tax net realized investment results improved $685 million for the nine months ended September 30, 2010 as compared with the same period in 2009, driven by significantly lower OTTI losses recognized in earnings.

Net loss from discontinued operations increased $19 million for the nine months ended September 30, 2010 as compared with the same period in 2009, due to the loss associated with the Loss Portfolio Transfer.

Agreement to Cede Asbestos and Environmental Pollution (A&EP) Liabilities to National Indemnity Company (NICO)

As previously reported on August 31, 2010, we completed a transaction with NICO, a subsidiary of Berkshire Hathaway Inc., under which substantially all of our legacy A&EP liabilities were ceded to NICO. Under the terms of the NICO transaction, effective January 1, 2010 we ceded approximately $1.6 billion of net A&EP claim and allocated claim adjustment expense reserves to NICO under a retroactive reinsurance agreement with an aggregate limit of $4 billion (Loss Portfolio Transfer). We paid NICO a reinsurance premium of $2 billion and transferred to NICO billed third party reinsurance receivables related to A&EP claims with a net book value of $215 million. NICO deposited approximately $2.2 billion in a collateral trust account as security for its obligations to us. In addition, Berkshire Hathaway Inc. guaranteed 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.

Page 3 of 8

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 increased $16 million for the three months ended September 30, 2010 as compared with the same period in 2009. Net written premiums increased in our professional management and liability lines of business. This increase was partially offset by continued decreased insured exposures and lower rates in our architects & engineers and HealthPro lines of business due to current economic and competitive market conditions. Average rate decreased 2% for the three months ended September 30, 2010, as compared to a decrease of 1% for the three months ended September 30, 2009 for the policies that renewed in each period. Retention rates of 86% and 85% were achieved for those policies that were available for renewal in each period.

• Net operating income decreased $9 million for the three months ended September 30, 2010 as compared with the same period in 2009. This decrease was primarily due to decreased current accident year underwriting results and lower net investment income, partially offset by increased favorable net prior year development.

• The combined ratio improved 0.3 points for the three months ended September 30, 2010 as compared with the same period in 2009. The loss ratio improved 2.0 points, primarily due to increased favorable net prior year development, partially offset by the impact of a higher current accident year loss ratio. The expense ratio increased 1.6 points, primarily related to higher underwriting expenses.

• Net income increased $24 million for the three months ended September 30, 2010 as compared with the same period in 2009. This increase was due to improved net realized investment results, partially offset by lower net operating income.

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 $24 million for the three months ended September 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 was flat for the three months ended September 30, 2010 and 2009 for policies that renewed in each period. Retention rates of 81% and 80% were achieved for those policies that were available for renewal in each period.

• Net operating income decreased $10 million for the three months ended September 30, 2010 as compared with the same period in 2009. This decrease was primarily due to lower net investment income, driven by less favorable limited partnership income, partially offset by increased favorable net prior year development.

• The combined ratio improved 4.9 points for the three months ended September 30, 2010 as compared with the same period in 2009. The loss ratio improved 3.2 points, primarily due to increased favorable net prior year development and decreased catastrophe losses. The expense ratio improved 1.7 points primarily due to the favorable impact of a reduction in the allowance for uncollectible insurance receivables and decreased unfavorable changes in estimates for insurance-related assessments, partially offset by the unfavorable impact of the lower net earned premium base.

• Net income improved $50 million for the three months ended September 30, 2010 as compared with the same period in 2009. This improvement was due to improved net realized investment results, partially offset by lower net operating income.

Page 4 of 8

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 results decreased $107 million for the three months ended September 30, 2010 as compared with the same period in 2009. This decrease was primarily due to the favorable impact in 2009 of a $61 million after-tax gain arising from a settlement that resolved litigation related to the placement of personal accident reinsurance. Also contributing to the decrease in net results was a $39 million pretax and after-tax increase to payout annuity benefit reserves resulting from unlocking assumptions due to loss recognition, and less favorable performance on our pension deposit business.

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 and A&EP.

• Net loss increased $349 million for the three months ended September 30, 2010 as compared with the same period in 2009, driven by the after-tax loss from continuing operations of $344 million as a result of the Loss Portfolio Transfer, as previously discussed. Net results were also impacted by lower net investment income and higher interest expense. Partially offsetting these unfavorable items were improved net realized investment results.

Page 5 of 8

Segment Results for the Three Months Ended September 30, 2010

										Corporate
	CNA		CNA		Total P&C		Life & Group			& Other
($ millions)	Specialty		Commercial		Operations		Non-Core			Non-Core			Total
Net operating income (loss)	$	144	$	108	$	252	$	(55	)	$	(355	)	$	(158	)
Net realized investment gains		9		14		23		13			4			40
Net income (loss) from continuing operations	$	153	$	122	$	275	$	(42	)	$	(351	)	$	(118	)

Segment Results for the Three Months Ended September 30, 2009

												Corporate
	CNA			CNA			Total P&C			Life & Group		& Other
($ millions)	Specialty			Commercial			Operations			Non-Core		Non-Core			Total
Net operating income	$	153		$	118		$	271		$	51	$	9		$	331
Net realized investment gains (losses)		(24	)		(46	)		(70	)		14		(11	)		(67	)
Net income (loss) from continuing operations	$	129		$	72		$	201		$	65	$	(2	)	$	264

Segment Results for the Nine Months Ended September 30, 2010

										Corporate
	CNA		CNA		Total P&C		Life & Group			& Other
($ millions)	Specialty		Commercial		Operations		Non-Core			Non-Core			Total
Net operating income (loss)	$	440	$	329	$	769	$	(72	)	$	(363	)	$	334
Net realized investment gains		39		14		53		8			14			75
Net income (loss) from continuing operations	$	479	$	343	$	822	$	(64	)	$	(349	)	$	409

Segment Results for the Nine Months Ended September 30, 2009

													Corporate
	CNA			CNA			Total P&C			Life & Group			& Other
($ millions)	Specialty			Commercial			Operations			Non-Core			Non-Core			Total
Net operating income	$	413		$	356		$	769		$	3		$	13		$	785
Net realized investment losses		(151	)		(288	)		(439	)		(101	)		(70	)		(610	)
Net income (loss) from continuing operations	$	262		$	68		$	330		$	(98	)	$	(57	)	$	175

Property & Casualty Operations Gross Written Premiums

	Three Months Ended September 30				Nine Months Ended September 30
($ millions)	2010		2009		2010		2009
CNA Specialty	$	1,087	$	1,071	$	3,180	$	3,195
CNA Commercial		825		882		2,673		2,946
Total P&C Operations	$	1,912	$	1,953	$	5,853	$	6,141

Property & Casualty Operations Net Written Premiums

	Three Months Ended September 30				Nine Months Ended September 30
($ millions)	2010		2009		2010		2009
CNA Specialty	$	706	$	690	$	2,009	$	2,017
CNA Commercial		763		787		2,430		2,647
Total P&C Operations	$	1,469	$	1,477	$	4,439	$	4,664

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Property & Casualty Calendar Year Loss Ratios

	Three Months Ended September 30						Nine Months Ended September 30
	2010			2009			2010			2009
CNA Specialty		57.8	%		59.8	%		55.8	%		60.1	%
CNA Commercial		70.2	%		73.4	%		68.3	%		71.9	%
Total P&C Operations		64.6	%		67.4	%		62.7	%		66.7	%
Property & Casualty Calendar Year Combined Ratios
	Three Months Ended September 30						Nine Months Ended September 30
	2010			2009			2010			2009
CNA Specialty		88.5	%		88.8	%		86.6	%		89.2	%
CNA Commercial		105.7	%		110.6	%		104.5	%		106.8	%
Total P&C Operations		97.9	%		101.0	%		96.5	%		99.1	%
CNA Specialty Effect of Catastrophe Impacts and Development-Related Items
	Three Months Ended September 30						Nine Months Ended September 30
	2010			2009			2010			2009
Combined ratio excluding the effect of catastrophe impacts and development-related items		98.2	%		94.0	%		97.2	%		94.1	%
Effect of catastrophe impacts		0.1			0.3			0.3			0.3
Effect of development-related items		(9.8	)		(5.5	)		(10.9	)		(5.2	)
Combined ratio		88.5	%		88.8	%		86.6	%		89.2	%
CNA Commercial Effect of Catastrophe Impacts and Development-Related Items
	Three Months Ended September 30						Nine Months Ended September 30
	2010			2009			2010			2009
Combined ratio excluding the effect of catastrophe impacts and development-related items		108.2	%		109.7	%		108.3	%		106.8	%
Effect of catastrophe impacts		1.4			2.4			3.9			2.8
Effect of development-related items		(3.9	)		(1.5	)		(7.7	)		(2.8	)
Combined ratio		105.7	%		110.6	%		104.5	%		106.8	%
Property & Casualty Operations Effect of Catastrophe Impacts and Development-Related Items
	Three Months Ended September 30						Nine Months Ended September 30
	2010			2009			2010			2009
Combined ratio excluding the effect of catastrophe impacts and development-related items		103.6	%		102.8	%		103.4	%		101.4	%
Effect of catastrophe impacts		0.8			1.5			2.3			1.7
Effect of development-related items		(6.5	)		(3.3	)		(9.2	)		(4.0	)
Combined ratio		97.9	%		101.0	%		96.5	%		99.1	%

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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 (888) 437-9481, or for international callers, (719) 325-2183. 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 November 8, 2010 by dialing (888) 203-1112, or for international callers, (719) 457-0820. The replay passcode is 9295475. The replay will also be available on CNA’s website. Financial supplement information related to the third 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 herein and/or to CNAF’s most recent 10-K and 10-Q on file 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&EP) liabilities referenced in this press release, include whether the other parties to the transaction will fully perform their obligations to CNA, the uncertainty in estimating loss reserves for A&EP liabilities and the possible continued exposure of CNA to liabilities for A&EP claims. For a detailed description of other risks and uncertainties affecting CNA, please refer to CNAF’s most recent 10-K and 10-Q on file 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

September 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
September 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 (Nine Months Ended)		12
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Nine Months Ended)		13
Components of Pretax Net Investment Income		14
Statutory Data — Preliminary		15
Property & Casualty Operations Loss & LAE Ratio Analysis		16

CNA Financial Corporation

Definitions and Presentation

• Collectively, CNA Financial Corporation (CNAF) 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 and asbestos and environmental pollution (A&EP). Intersegment eliminations are also included in this segment.

• 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 CNAF’s Annual Report on Form 10-K for the year ended December 31, 2009 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. The statutory expense ratio reported on page 15 is the percentage of insurance underwriting and acquisition expenses to net written premiums in accordance with statutory accounting practices.

• 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

Agreement to Cede Asbestos and Environmental Pollution (A&EP) Liabilities to National Indemnity Company (NICO)

On August 31, 2010, the Company completed a transaction with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc., under which substantially all of the Company’s legacy A&EP liabilities were ceded to NICO (Loss Portfolio Transfer or LPT). The Company recognized an after-tax net loss of $365 million in the third quarter of 2010, of which $344 million related to the Company’s continuing operations. Since a portion of the liabilities ceded related to the Company’s discontinued operations, the Company recognized an after-tax net loss for discontinued operations of $21 million in the third quarter of 2010.

i

CNA FINANCIAL CORPORATION
Financial Supplement
Statements of Operations

	Three Months						Fav /			Nine Months						Fav /
PERIODS ENDED SEPTEMBER 30							(Unfav)									(Unfav)
(In millions)	2010			2009			% Change			2010			2009			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,645		$	1,707			(4	)%	$	4,868		$	5,035			(3	)%
Net investment income		581			660			(12	)		1,692			1,755			(4	)
Net realized investment gains (losses), net of participating policyholders’ interests:
Other-than-temporary impairment (OTTI) losses		(41	)		(232	)		82			(189	)		(1,330	)		86
Portion of OTTI recognized in Other comprehensive income (loss)		(3	)		84			(104	)		28			173			(84	)
Net OTTI losses recognized in earnings (1)		(44	)		(148	)		70			(161	)		(1,157	)		86
Other net realized investment gains (losses)		106			48			121			286			228			25
Net realized investment gains (losses), net of participating policyholders’ interests		62			(100	)		162			125			(929	)		113
Other revenues		75			73			3			226			213			6
Total revenues		2,363			2,340			1			6,911			6,074			14
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,344			1,283			(5	)		3,799			3,919			3
Amortization of deferred acquisition costs		351			365			4			1,038			1,063			2
Other operating expenses		795			272			(192	)		1,325			814			(63	)
Interest		40			34			(18	)		113			95			(19	)
Total claims, benefits and expenses		2,530			1,954			(29	)		6,275			5,891			(7	)
Income (loss) from continuing operations before income tax		(167	)		386			(143	)		636			183			N/M
Income tax (expense) benefit		64			(108	)		159			(183	)		30			N/M
Income (loss) from continuing operations		(103	)		278			(137	)		453			213			113
Income (loss) from discontinued operations, net of tax		(22	)		(1	)		N/M			(21	)		(2	)		N/M
Net income (loss)		(125	)		277			(145	)		432			211			105
Net (income) loss attributable to noncontrolling interests		(15	)		(14	)		(7	)		(44	)		(38	)		(16	)
Net income (loss) attributable to CNA	$	(140	)	$	263			(153	)%	$	388		$	173			124	%

(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 CNAF’s Annual Report on Form 10-K for the year ended December 31, 2009 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 SEPTEMBER 30	Three Months						Nine 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 before LPT	$	186		$	331		$	678		$	785
Net loss related to LPT		(344	)		—			(344	)		—
Net operating income (loss) from continuing operations attributable to CNA		(158	)		331			334			785
Less: 2008 Senior Preferred dividend		(18	)		(31	)		(68	)		(94	)
Net operating income (loss) from continuing operations attributable to CNA common stockholders		(176	)		300			266			691
Net realized investment gains (losses) attributable to CNA common stockholders		40			(67	)		75			(610	)
Income (loss) from continuing operations attributable to CNA common stockholders		(136	)		233			341			81
Income (loss) from discontinued operations attributable to CNA common stockholders		(22	)		(1	)		(21	)		(2	)
Income (loss) attributable to CNA common stockholders	$	(158	)	$	232		$	320		$	79
BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE
Net operating income (loss) from continuing operations attributable to CNA before LPT	$	0.69		$	1.23		$	2.52		$	2.92
Net loss related to LPT		(1.28	)		—			(1.28	)		—
Net operating income (loss) from continuing operations attributable to CNA		(0.59	)		1.23			1.24			2.92
Less: 2008 Senior Preferred dividend		(0.07	)		(0.12	)		(0.25	)		(0.35	)
Net operating income (loss) from continuing operations attributable to CNA common stockholders		(0.66	)		1.11			0.99			2.57
Net realized investment gains (losses) attributable to CNA common stockholders		0.15			(0.25	)		0.28			(2.27	)
Income (loss) from continuing operations attributable to CNA common stockholders		(0.51	)		0.86			1.27			0.30
Income (loss) from discontinued operations attributable to CNA common stockholders		(0.08	)		—			(0.08	)		(0.01	)
Basic and diluted earnings (loss) per share attributable to CNA common stockholders	$	(0.59	)	$	0.86		$	1.19		$	0.29
WEIGHTED AVERAGE OUTSTANDING COMMON STOCK AND COMMON STOCK EQUIVALENTS
Basic		269.2			269.0			269.1			269.0
Diluted		269.2			269.2			269.4			269.1
RETURN ON EQUITY
Net income (loss) attributable to CNA (1)		(4.7	)%		10.8	%		4.6	%		2.6	%
Net operating income (loss) from continuing operations attributable to CNA (2)		(5.7	)		12.2			4.1			9.6

(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)	September 30, 2010		December 31, 2009
Total assets	$	56,881	$	55,298
Insurance reserves		37,584		38,263
Debt		2,651		2,303
Total liabilities		44,316		44,132
Preferred stock		500		1,000
Accumulated other comprehensive income (loss)		1,177		(325	)
Noncontrolling interests		555		506
Total CNA stockholders’ equity		12,010		10,660
Book value per common share	$	42.76	$	35.91
Book value per common share excluding AOCI	$	38.38	$	37.12
Outstanding shares of common stock (in millions of shares)		269.2		269.0

THREE MONTHS ENDED
SEPTEMBER 30
(In millions)	2010			2009
Net cash flows provided (used) by operating activities (1) (2)	$	(1,254	)	$	(12	)
Net cash flows provided (used) by investing activities		1,383			52
Net cash flows provided (used) by financing activities		(121	)		(13	)
Net cash flows provided (used) by operating, investing and financing activities	$	8		$	27
NINE MONTHS ENDED
SEPTEMBER 30
(In millions)	2010			2009
Net cash flows provided (used) by operating activities (1) (2)	$	(673	)	$	275
Net cash flows provided (used) by investing activities		860			(168	)
Net cash flows provided (used) by financing activities		(245	)		(72	)
Net cash flows provided (used) by operating, investing and financing activities	$	(58	)	$	35

(1)	Operating cash flows for the three and nine months ended September 30, 2010 include $(75) million and $(89) million related to discontinued operations. Operating cash flows for the three and nine months ended September 30, 2009 include $(4) million and $(16) million related to discontinued operations.
(2)	Operating cash flows for the three and nine months ended September 30, 2010 include $(1.9) billion related to the initial net cash settlement with NICO for the Loss Portfolio Transfer, as further discussed on page i.

3

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

THREE MONTHS ENDED SEPTEMBER 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	$	6,916		$	12,575		$	19,491		$	2,734		$	3,743		$	25,968
Ceded		1,008			2,046			3,054			696			1,429			5,179
Net		5,908			10,529			16,437			2,038			2,314			20,789
Reduction of net reserves due to A&EP LPT		—			—			—			—			(1,381	)		(1,381	)
Net incurred claim & claim adjustment expenses		393			585			978			157			14			1,149
Net claim & claim adjustment expense payments		(361	)		(647	)		(1,008	)		(126	)		(79	)		(1,213	)
Foreign currency translation and other		25			21			46			—			1			47
Claim & claim adjustment expense reserves, end of period
Net		5,965			10,488			16,453			2,069			869			19,391
Ceded		948			2,047			2,995			675			2,722			6,392
Gross	$	6,913		$	12,535		$	19,448		$	2,744		$	3,591		$	25,783

NINE MONTHS ENDED SEPTEMBER 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 A&EP LPT		—			—			—			—			(1,381	)		(1,381	)
Reduction of net reserves due to sale of subsidiary		—			(98	)		(98	)		—			—			(98	)
Net incurred claim & claim adjustment expenses		1,115			1,676			2,791			438			55			3,284
Net claim & claim adjustment expense payments		(1,009	)		(1,928	)		(2,937	)		(388	)		(292	)		(3,617	)
Foreign currency translation and other		(7	)		(11	)		(18	)		(1	)		—			(19	)
Claim & claim adjustment expense reserves, end of period
Net		5,965			10,488			16,453			2,069			869			19,391
Ceded		948			2,047			2,995			675			2,722			6,392
Gross	$	6,913		$	12,535		$	19,448		$	2,744		$	3,591		$	25,783

4

CNA FINANCIAL CORPORATION
Financial Supplement
Investments by Segment Aggregation

	September 30, 2010					June 30, 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	$	23,035		$	24,068	$	23,159		$	23,677	$	21,295		$	21,158
Fixed maturities — tax-exempt		2,735			2,744		2,916			2,880		4,513			4,446
Equities		187			206		221			220		298			292
Short term investments		2,019			2,019		2,880			2,881		3,789			3,792
Limited partnership investments		2,164			2,164		2,056			2,056		1,777			1,777
Mortgage loans & other		78			78		14			15		3			3
Total investments	$	30,218		$	31,279	$	31,246		$	31,729	$	31,675		$	31,468
Net receivable/(payable)	$	(121	)			$	129				$	(91	)
Securities lending collateral		—					—					—
Life & Group Non-Core:
Fixed maturities — taxable	$	8,185		$	9,331	$	7,763		$	8,485	$	7,129		$	7,425
Fixed maturities — tax-exempt		2,426			2,503		2,572			2,523		2,665			2,583
Equities		278			325		319			329		335			352
Short term investments		65			65		159			159		156			157
Limited partnership investments		2			2		3			3		10			10
Mortgage loans & other		21			21		—			—		1			1
Total investments	$	10,977		$	12,247	$	10,816		$	11,499	$	10,296		$	10,528
Net receivable/(payable)	$	17				$	(4	)			$	—
Securities lending collateral		—					—					—
Total investments	$	41,195		$	43,526	$	42,062		$	43,228	$	41,971		$	41,996
Total net receivable/(payable)	$	(104	)			$	125				$	(91	)
Total securities lending collateral		—					—					—

5

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

Invested Assets Fair Value By Segment

	P&C and
	Corporate & Other				Life & Group
	Non-Core		%		Non-Core		%		Total		%
RMBS	$	5,563		17.8	$	413		3.4	$	5,976		13.7
CMBS		807		2.6		194		1.6		1,001		2.3
Other ABS		611		1.9		54		0.4		665		1.5
Total asset-backed exposure		6,981		22.3		661		5.4		7,642		17.5
Other taxable fixed maturities		17,087		54.6		8,670		70.8		25,757		59.2
Tax exempt fixed maturities		2,744		8.8		2,503		20.4		5,247		12.1
All other		4,467		14.3		413		3.4		4,880		11.2
Total investments	$	31,279		100.0	$	12,247		100.0	$	43,526		100.0
Sub-prime (Included in RMBS Above)	$	533		1.7	$	22		0.2	$	555		1.3
Alt-A (Included in RMBS Above)	$	612		2.0	$	68		0.6	$	680		1.6

Invested Assets Amortized Cost By Segment

	P&C and
	Corporate & Other				Life & Group
	Non-Core		%		Non-Core		%		Total		%
RMBS	$	5,657		18.7	$	432		3.9	$	6,089		14.8
CMBS		836		2.8		196		1.8		1,032		2.5
Other ABS		602		2.0		48		0.5		650		1.6
Total asset-backed exposure		7,095		23.5		676		6.2		7,771		18.9
Other taxable fixed maturities		15,940		52.8		7,509		68.4		23,449		56.9
Tax exempt fixed maturities		2,735		9.0		2,426		22.1		5,161		12.5
All other		4,448		14.7		366		3.3		4,814		11.7
Total investments	$	30,218		100.0	$	10,977		100.0	$	41,195		100.0
Sub-prime (Included in RMBS Above)	$	575		1.9	$	21		0.2	$	596		1.4
Alt-A (Included in RMBS Above)	$	649		2.1	$	71		0.6	$	720		1.7

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	$	2,946	$	2,827	$	32	$	30	$	—	$	—	$	2,978	$	2,857		39.0		36.8		6.8		6.9
AAA		1,167		1,224		382		396		486		475		2,035		2,095		26.6		26.9		4.7		5.1
AA		224		250		173		172		65		64		462		486		6.0		6.3		1.0		1.2
A		197		215		261		279		66		65		524		559		6.9		7.2		1.2		1.4
BBB		247		263		113		122		24		24		384		409		5.0		5.3		0.9		1.0
<BBB & Equity Tranches		1,195		1,310		40		33		24		22		1,259		1,365		16.5		17.5		2.9		3.3
Total RMBS/CMBS/other ABS	$	5,976	$	6,089	$	1,001	$	1,032	$	665	$	650	$	7,642	$	7,771		100.0		100.0		17.5		18.9

(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 two major providers, Standard & Poor’s and Moody’s Investors Service, Inc., in that order of preference. If a security is not rated by these providers, 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 September 30, 2010
(In millions)

RMBS Sub-Prime Fair Value Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	13		9.4	$	—		—	$	2		4.9	$	—		—	$	—		—	$	15		2.7
2008		—		—		—		—		2		4.9		—		—		—		—		2		0.4
2007		6		4.3		31		20.3		6		14.6		—		—		12		6.7		55		9.9
2006		74		53.2		47		30.7		12		29.3		31		72.1		105		58.6		269		48.5
2005		33		23.7		40		26.1		1		2.4		—		—		10		5.6		84		15.1
2004		8		5.8		20		13.1		2		4.9		12		27.9		22		12.3		64		11.5
2003 & prior		5		3.6		15		9.8		16		39.0		—		—		30		16.8		66		11.9
Total sub-prime	$	139		100.0	$	153		100.0	$	41		100.0	$	43		100.0	$	179		100.0	$	555		100.0

RMBS Sub-Prime Amortized Cost Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	13		8.7	$	—		—	$	2		4.3	$	—		—	$	—		—	$	15		2.5
2008		—		—		—		—		2		4.3		—		—		—		—		2		0.3
2007		7		4.7		31		17.7		6		12.7		—		—		12		6.4		56		9.4
2006		82		55.0		53		30.3		12		25.5		31		81.6		108		57.8		286		48.0
2005		34		22.8		53		30.3		1		2.1		—		—		12		6.4		100		16.8
2004		8		5.4		21		12.0		3		6.4		7		18.4		26		13.9		65		10.9
2003 & prior		5		3.4		17		9.7		21		44.7		—		—		29		15.5		72		12.1
Total sub-prime	$	149		100.0	$	175		100.0	$	47		100.0	$	38		100.0	$	187		100.0	$	596		100.0

RMBS Alt-A Fair Value Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—
2008		—		—		—		—		—		—		—		—		—		—		—		—
2007		—		—		—		—		2		5.1		—		—		38		30.6		40		5.9
2006		—		—		6		12.0		4		10.3		—		—		63		50.8		73		10.7
2005		25		6.7		9		18.0		10		25.6		58		59.8		17		13.7		119		17.5
2004		293		79.2		20		40.0		22		56.4		39		40.2		6		4.9		380		55.9
2003 & prior		52		14.1		15		30.0		1		2.6		—		—		—		—		68		10.0
Total Alt-A	$	370		100.0	$	50		100.0	$	39		100.0	$	97		100.0	$	124		100.0	$	680		100.0

RMBS Alt-A Amortized Cost Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2009	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—		—
2008		—		—		—		—		—		—		—		—		—		—		—		—
2007		—		—		—		—		2		5.0		—		—		50		35.2		52		7.2
2006		—		—		6		11.3		4		10.0		—		—		66		46.5		76		10.6
2005		28		7.2		11		20.8		10		25.0		59		60.2		18		12.7		126		17.5
2004		306		79.1		20		37.7		23		57.5		39		39.8		8		5.6		396		55.0
2003 & prior		53		13.7		16		30.2		1		2.5		—		—		—		—		70		9.7
Total Alt-A	$	387		100.0	$	53		100.0	$	40		100.0	$	98		100.0	$	142		100.0	$	720		100.0

7

CNA FINANCIAL CORPORATION
Financial Supplement
Asset-Backed Exposure
As of September 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	$	2,638	$	2,542	$	301	$	278	$	5	$	5	$	—	$	—	$	2	$	2	$	2,946	$	2,827
AAA		631		667		139		146		52		56		3		3		342		352		1,167		1,224
AA		80		91		—		—		59		58		75		91		10		10		224		250
A		164		180		18		20		6		6		4		4		5		5		197		215
BBB		220		236		—		—		26		26		1		1		—		—		247		263
<BBB & Equity Tranches		623		671		67		67		444		509		42		45		19		18		1,195		1,310
Total RMBS	$	4,356	$	4,387	$	525	$	511	$	592	$	660	$	125	$	144	$	378	$	387	$	5,976	$	6,089
Included in Total RMBS:
MBS Pass-Through	$	1,013	$	1,003	$	28	$	27	$	5	$	5	$	—	$	—	$	8	$	5	$	1,054	$	1,040
Structured		3,343		3,384		497		484		587		655		125		144		370		382		4,922		5,049
Total RMBS	$	4,356	$	4,387	$	525	$	511	$	592	$	660	$	125	$	144	$	378	$	387	$	5,976	$	6,089
Included in Total RMBS:
Sub-prime	$	308	$	332	$	—	$	—	$	105	$	104	$	125	$	144	$	17	$	16	$	555	$	596
Alt-A		581		613		14		15		73		80		—		—		12		12		680		720
Prime		3,467		3,442		511		496		414		476		—		—		349		359		4,741		4,773
Total RMBS	$	4,356	$	4,387	$	525	$	511	$	592	$	660	$	125	$	144	$	378	$	387	$	5,976	$	6,089

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	$	—	$	—	$	32	$	30	$	32	$	30
AAA		114		109		268		287		382		396
AA		96		94		77		78		173		172
A		129		151		132		128		261		279
BBB		12		12		101		110		113		122
<BBB & Equity Tranches		13		15		27		18		40		33
Total CMBS	$	364	$	381	$	637	$	651	$	1,001	$	1,032
Included in Total CMBS:
Pass-Through	$	—	$	—	$	—	$	—	$	—	$	—
Structured		364		381		637		651		1,001		1,032
Total CMBS	$	364	$	381	$	637	$	651	$	1,001	$	1,032

ARM — Adjustable rate mortgages

MBS — Mortgage-backed securities

8

CNA FINANCIAL CORPORATION
Financial Supplement
Asset-Backed Exposure
As of September 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	$	271	$	263	$	59	$	67	$	156	$	145	$	486	$	475
AA		—		—		—		—		65		64		65		64
A		30		30		—		—		36		35		66		65
BBB		12		12		—		—		12		12		24		24
<BBB & Equity Tranches		—		—		—		—		24		22		24		22
Total other ABS	$	313	$	305	$	59	$	67	$	293	$	278	$	665	$	650
Included in Total other ABS:
Pass-Through	$	22	$	22	$	—	$	—	$	—	$	—	$	22	$	22
Structured		291		283		59		67		293		278		643		628
Total other ABS	$	313	$	305	$	59	$	67	$	293	$	278	$	665	$	650

9

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

THREE MONTHS ENDED SEPTEMBER 30 (In millions)	CNA Specialty									CNA Commercial									P&C Operations
							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
	2010			2009			% Change			2010			2009			% Change			2010			2009			% Change
Gross written premiums	$	1,087		$	1,071			1	%	$	825		$	882			(6	)%	$	1,912		$	1,953			(2	)%
Net written premiums		706			690			2			763			787			(3	)		1,469			1,477			(1	)
Net earned premiums		679			687			(1	)		819			874			(6	)		1,498			1,561			(4	)
Net investment income		148			154			(4	)		214			276			(22	)		362			430			(16	)
Other revenues		57			53			8			15			13			15			72			66			9
Total operating revenues		884			894			(1	)		1,048			1,163			(10	)		1,932			2,057			(6	)
Claims, benefits and expenses:
Net incurred claims and benefits		393			410			4			576			642			10			969			1,052			8
Policyholders’ dividends		2			1			(100	)		4			4			—			6			5			(20	)
Amortization of deferred acquisition costs		162			157			(3	)		183			203			10			345			360			4
Other insurance related expenses		45			40			(13	)		104			118			12			149			158			6
Other expenses		47			45			(4	)		14			23			39			61			68			10
Total claims, benefits and expenses		649			653			1			881			990			11			1,530			1,643			7
Operating income (loss) from continuing operations before income tax		235			241			(2	)		167			173			(3	)		402			414			(3	)
Income tax (expense) benefit on operating income (loss)		(80	)		(78	)		(3	)		(54	)		(52	)		(4	)		(134	)		(130	)		(3	)
Net operating (income) loss, after-tax, attributable to noncontrolling interests		(11	)		(10	)		(10	)		(5	)		(3	)		(67	)		(16	)		(13	)		(23	)
Net operating income (loss) from continuing operations attributable to CNA		144			153			(6	)		108			118			(8	)		252			271			(7	)
Net realized investment gains (losses), net of participating policyholders’ interests		15			(35	)		143			21			(69	)		130			36			(104	)		135
Income tax (expense) benefit on net realized investment gains (losses)		(6	)		11			(155	)		(8	)		24			(133	)		(14	)		35			(140	)
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		—			—			N/M			1			(1	)		N/M			1			(1	)		N/M
Net realized investment gains (losses) attributable to CNA		9			(24	)		138			14			(46	)		130			23			(70	)		133
Net income (loss) from continuing operations attributable to CNA	$	153		$	129			19	%	$	122		$	72			69	%	$	275		$	201			37	%
FINANCIAL RATIOS
Loss & LAE		57.8	%		59.8	%					70.2	%		73.4	%					64.6	%		67.4	%
Acquisition expense		19.7			19.5						18.2			20.7						18.9			20.2
Underwriting expense		10.7			9.3						16.9			16.1						14.1			13.1
Expense		30.4			28.8						35.1			36.8						33.0			33.3
Dividend		0.3			0.2						0.4			0.4						0.3			0.3
Combined ratio		88.5	%		88.8	%					105.7	%		110.6	%					97.9	%		101.0	%
RATIO IMPACTS
Impact of catastrophes
Pretax net accident year catastrophe losses incurred	$	1		$	2					$	11		$	21					$	12		$	23
Impact on loss & LAE ratio		0.1	%		0.3	%					1.4	%		2.4	%					0.8	%		1.5	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & ALAE reserve development	$	(65	)	$	(39	)				$	(26	)	$	(21	)				$	(91	)	$	(60	)
Prior year premium development		(2	)		3						(2	)		9						(4	)		12
Other (1)		—			—						(4	)		2						(4	)		2
Total development & other	$	(67	)	$	(36	)				$	(32	)	$	(10	)				$	(99	)	$	(46	)
Impact of development & other on loss & LAE ratio		(9.8	)%		(5.5	)%					(3.9	)%		(1.5	)%					(6.5	)%		(3.3	)%

(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
SEPTEMBER 30													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2010			2009			2010			2009			% Change			2010			2009			% Change			2010			2009			% Change
Net earned premiums	$	1,498		$	1,561		$	145		$	149			(3	)%	$	2		$	(3	)		167	%	$	1,645		$	1,707			(4	)%
Net investment income		362			430			182			169			8			37			61			(39	)		581			660			(12	)
Other revenues		72			66			4			2			100			(1	)		5			(120	)		75			73			3
Total operating revenues		1,932			2,057			331			320			3			38			63			(40	)		2,301			2,440			(6	)
Claims, benefits and expenses:
Net incurred claims and benefits		969			1,052			354			199			(78	)		14			25			44			1,337			1,276			(5	)
Policyholders’ dividends		6			5			1			2			50			—			—			N/M			7			7			—
Amortization of deferred acquisition costs		345			360			6			5			(20	)		—			—			N/M			351			365			4
Other insurance related expenses		149			158			41			45			9			8			1			N/M			198			204			3
Other expenses		61			68			7			7			—			569			27			N/M			637			102			N/M
Total claims, benefits and expenses		1,530			1,643			409			258			(59	)		591			53			N/M			2,530			1,954			(29	)
Operating income (loss) from continuing operations before income tax		402			414			(78	)		62			N/M			(553	)		10			N/M			(229	)		486			(147	)
Income tax (expense) benefit on operating income (loss)		(134	)		(130	)		23			(11	)		N/M			198			(1	)		N/M			87			(142	)		161
Net operating (income) loss, after-tax, attributable to noncontrolling interests		(16	)		(13	)		—			—			N/M			—			—			N/M			(16	)		(13	)		(23	)
Net operating income (loss) from continuing operations attributable to CNA		252			271			(55	)		51			N/M			(355	)		9			N/M			(158	)		331			(148	)
Net realized investment gains (losses), net of participating policyholders’ interests		36			(104	)		20			21			(5	)		6			(17	)		135			62			(100	)		162
Income tax (expense) benefit on net realized investment gains (losses)		(14	)		35			(7	)		(7	)		0			(2	)		6			(133	)		(23	)		34			(168	)
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests		1			(1	)		—			—			N/M			—			—			N/M			1			(1	)		200
Net realized investment gains (losses) attributable to CNA		23			(70	)		13			14			(7	)		4			(11	)		136			40			(67	)		160
Net income (loss) from continuing operations attributable to CNA	$	275		$	201		$	(42	)	$	65			(165	)%	$	(351	)	$	(2	)		N/M	%	$	(118	)	$	264			(145	)%

11

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

NINE MONTHS ENDED	CNA Specialty									CNA Commercial									P&C Operations
SEPTEMBER 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2010			2009			% Change			2010			2009			% Change			2010			2009			% Change
Gross written premiums	$	3,180		$	3,195			(0	)%	$	2,673		$	2,946			(9	)%	$	5,853		$	6,141			(5	)%
Net written premiums		2,009			2,017			(0	)		2,430			2,647			(8	)		4,439			4,664			(5	)
Net earned premiums		1,998			2,014			(1	)		2,432			2,574			(6	)		4,430			4,588			(3	)
Net investment income		420			396			6			613			702			(13	)		1,033			1,098			(6	)
Other revenues		162			153			6			49			47			4			211			200			6
Total operating revenues		2,580			2,563			1			3,094			3,323			(7	)		5,674			5,886			(4	)
Claims, benefits and expenses:
Net incurred claims and benefits		1,115			1,209			8			1,662			1,852			10			2,777			3,061			9
Policyholders’ dividends		6			7			14			11			6			(83	)		17			13			(31	)
Amortization of deferred acquisition costs		471			457			(3	)		552			591			7			1,023			1,048			2
Other insurance related expenses		139			123			(13	)		318			301			(6	)		457			424			(8	)
Other expenses		141			133			(6	)		42			62			32			183			195			6
Total claims, benefits and expenses		1,872			1,929			3			2,585			2,812			8			4,457			4,741			6
Operating income (loss) from continuing operations before income tax		708			634			12			509			511			(0	)		1,217			1,145			6
Income tax (expense) benefit on operating income (loss)		(238	)		(195	)		(22	)		(165	)		(143	)		(15	)		(403	)		(338	)		(19	)
Net operating (income) loss, after-tax, attributable to noncontrolling interests		(30	)		(26	)		(15	)		(15	)		(12	)		(25	)		(45	)		(38	)		(18	)
Net operating income (loss) from continuing operations attributable to CNA		440			413			7			329			356			(8	)		769			769			0
Net realized investment gains (losses), net of participating policyholders’ interests		60			(227	)		126			29			(438	)		107			89			(665	)		113
Income tax (expense) benefit on net realized investment gains (losses)		(21	)		76			(128	)		(16	)		150			(111	)		(37	)		226			(116	)
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		39			(151	)		126			14			(288	)		105			53			(439	)		112
Net income (loss) from continuing operations attributable to CNA	$	479		$	262			83	%	$	343		$	68			N/M	%	$	822		$	330			149	%
FINANCIAL RATIOS
Loss & LAE		55.8	%		60.1	%					68.3	%		71.9	%					62.7	%		66.7	%
Acquisition expense		19.4			18.9						18.0			17.9						18.7			18.3
Underwriting expense		11.1			9.8						17.8			16.8						14.7			13.8
Expense		30.5			28.7						35.8			34.7						33.4			32.1
Dividend		0.3			0.4						0.4			0.2						0.4			0.3
Combined ratio		86.6	%		89.2	%					104.5	%		106.8	%					96.5	%		99.1	%
RATIO IMPACTS
Impact of catastrophes
Pretax net accident year catastrophe losses incurred	$	6		$	6					$	94		$	73					$	100		$	79
Impact on loss & LAE ratio		0.3	%		0.3	%					3.9	%		2.8	%					2.3	%		1.7	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & ALAE reserve development	$	(215	)	$	(103	)				$	(229	)	$	(148	)				$	(444	)	$	(251	)
Prior year premium development		(5	)		—						54			85						49			85
Other (1)		—			(1	)					1			12						1			11
Total development & other	$	(220	)	$	(104	)				$	(174	)	$	(51	)				$	(394	)	$	(155	)
Impact of development & other on loss & LAE ratio		(10.9	)%		(5.2	)%					(7.7	)%		(2.8	)%					(9.2	)%		(4.0	)%

(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

NINE MONTHS ENDED	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
SEPTEMBER 30													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2010			2009			2010			2009			% Change			2010			2009			% Change			2010			2009			% Change
Net earned premiums	$	4,430		$	4,588		$	436		$	447			(2)	%	$	2		$	—			N/M	%	$	4,868		$	5,035			(3)	%
Net investment income		1,033			1,098			531			496			7			128			161			(20	)		1,692			1,755			(4	)
Other revenues		211			200			10			7			43			5			6			(17	)		226			213			6
Total operating revenues		5,674			5,886			977			950			3			135			167			(19	)		6,786			7,003			(3	)
Claims, benefits and expenses:
Net incurred claims and benefits		2,777			3,061			949			773			(23	)		54			69			22			3,780			3,903			3
Policyholders’ dividends		17			13			2			3			33			—			—			N/M			19			16			(19	)
Amortization of deferred acquisition costs		1,023			1,048			15			15			—			—			—			N/M			1,038			1,063			2
Other insurance related expenses		457			424			137			138			1			7			1			N/M			601			563			(7	)
Other expenses		183			195			13			64			80			641			87			N/M			837			346			(142	)
Total claims, benefits and expenses		4,457			4,741			1,116			993			(12	)		702			157			N/M			6,275			5,891			(7	)
Operating income (loss) from continuing operations before income tax		1,217			1,145			(139	)		(43	)		N/M			(567	)		10			N/M			511			1,112			(54	)
Income tax (expense) benefit on operating income (loss)		(403	)		(338	)		67			46			46			204			3			N/M			(132	)		(289	)		54
Net operating (income) loss, after-tax, attributable to noncontrolling interests		(45	)		(38	)		—			—			N/M			—			—			N/M			(45	)		(38	)		(18	)
Net operating income (loss) from continuing operations attributable to CNA		769			769			(72	)		3			N/M			(363	)		13			N/M			334			785			(57	)
Net realized investment gains (losses), net of participating policyholders’ interests		89			(665	)		15			(156	)		110			21			(108	)		119			125			(929	)		113
Income tax (expense) benefit on net realized investment gains (losses)		(37	)		226			(7	)		55			(113	)		(7	)		38			(118	)		(51	)		319			(116	)
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		53			(439	)		8			(101	)		108			14			(70	)		120			75			(610	)		112
Net income (loss) from continuing operations attributable to CNA	$	822		$	330		$	(64	)	$	(98	)		35	%	$	(349	)	$	(57	)		N/M	%	$	409		$	175			134	%

13

CNA FINANCIAL CORPORATION
Financial Supplement
Components of Pretax Net Investment Income

	CNA Specialty
(In millions)	1Q09			2Q09		3Q09		4Q09			2009			1Q10		2Q10			3Q10		YTD2010
Income (loss) from limited partnerships	$	(19	)	$	47	$	41	$	23		$	92		$	23	$	(1	)	$	23	$	45
Income (loss) from trading portfolio		—			2		4		1			7			1		1			1		3
Other investment income		104			108		109		106			427			123		125			124		372
Net investment income	$	85		$	157	$	154	$	130		$	526		$	147	$	125		$	148	$	420
	CNA Commercial
	1Q09			2Q09		3Q09		4Q09			2009			1Q10		2Q10			3Q10		YTD2010
Income (loss) from limited partnerships	$	(39	)	$	95	$	83	$	44		$	183		$	39	$	(2	)	$	38	$	75
Income (loss) from trading portfolio		—			5		6		2			13			2		1			3		6
Other investment income		182			183		187		174			726			177		182			173		532
Net investment income	$	143		$	283	$	276	$	220		$	922		$	218	$	181		$	214	$	613
	P&C Operations
	1Q09			2Q09		3Q09		4Q09			2009			1Q10		2Q10			3Q10		YTD2010
Income (loss) from limited partnerships	$	(58	)	$	142	$	124	$	67		$	275		$	62	$	(3	)	$	61	$	120
Income (loss) from trading portfolio		—			7		10		3			20			3		2			4		9
Other investment income		286			291		296		280			1,153			300		307			297		904
Net investment income	$	228		$	440	$	430	$	350		$	1,448		$	365	$	306		$	362	$	1,033
	Life & Group Non-Core
	1Q09			2Q09		3Q09		4Q09			2009			1Q10		2Q10			3Q10		YTD2010
Income (loss) from limited partnerships	$	(2	)	$	—	$	1	$	(2	)	$	(3	)	$	—	$	(3	)	$	1	$	(2	)
Income (loss) from trading portfolio		—			—		—		—			—			—		—			—		—
Other investment income		161			168		168		170			667			175		177			181		533
Net investment income	$	159		$	168	$	169	$	168		$	664		$	175	$	174		$	182	$	531
	Corporate & Other Non-Core
	1Q09			2Q09		3Q09		4Q09			2009			1Q10		2Q10			3Q10		YTD2010
Income (loss) from limited partnerships	$	(10	)	$	23	$	20	$	10		$	43		$	10	$	2		$	6	$	18
Income (loss) from trading portfolio		—			1		2		—			3			1		—			—		1
Other investment income		43			43		39		37			162			39		39			31		109
Net investment income	$	33		$	67	$	61	$	47		$	208		$	50	$	41		$	37	$	128
	Total Operations
	1Q09			2Q09		3Q09		4Q09			2009			1Q10		2Q10			3Q10		YTD2010
Income (loss) from limited partnerships	$	(70	)	$	165	$	145	$	75		$	315		$	72	$	(4	)	$	68	$	136
Income (loss) from trading portfolio		—			8		12		3			23			4		2			4		10
Other investment income		490			502		503		487			1,982			514		523			509		1,546
Net investment income	$	420		$	675	$	660	$	565		$	2,320		$	590	$	521		$	581	$	1,692

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CNA FINANCIAL CORPORATION
Financial Supplement
Statutory Data – Preliminary

PERIODS ENDED SEPTEMBER 30	Three Months									Nine Months
Income Statement	(Preliminary)						Fav / (Unfav)			(Preliminary)						Fav / (Unfav)
(In millions)	2010			2009			% Change			2010			2009			% Change
Combined Continental Casualty Companies
Gross written premiums	$	1,867		$	1,903			(2	)%	$	5,630		$	5,920			(5	)%
Net written premiums		1,441			1,430			1			4,255			4,462			(5	)
Net earned premiums		1,288			1,315			(2	)		3,744			4,049			(8	)
Claim and claim adjustment expenses		1,095			1,013			(8	)		3,051			3,133			3
Acquisition expenses		260			269			3			725			771			6
Underwriting expenses		184			200			8			596			634			6
Policyholders’ dividends		3			4			25			9			11			18
Underwriting income (loss)		(254	)		(171	)		(49	)		(637	)		(500	)		(27	)
Net investment income		429			434			(1	)		1,256			1,251			—
Other income (loss)		(718	)		11			N/M			(705	)		27			N/M
Income tax (expense) benefit		152			12			N/M			44			(45	)		198
Net realized gains (losses)		7			(98	)		107			110			(933	)		112
Net income (loss)	$	(384	)	$	188			N/M	%	$	68		$	(200	)		134	%
Financial Ratios
Loss and LAE		85.0	%		77.1	%					81.5	%		77.4	%
Acquisition expense		18.1			18.8						17.0			17.3
Underwriting expense		12.7			13.9						14.1			14.1
Expense		30.8			32.7						31.1			31.4
Dividend		0.2			0.3						0.2			0.3
Combined ratio		116.0	%		110.1	%					112.8	%		109.1	%

SUPPLEMENTAL STATUTORY DATA
	(Preliminary)
(In millions)	September 30, 2010		December 31, 2009
Combined Continental Casualty Companies
Statutory surplus (1)	$	9,638	$	9,338
Life Company
Statutory surplus	$	492	$	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
	9/30/10			12/31/09			9/30/10
Gross Accident Year		62.8	%		65.6	%		66.8	%
Impact of Reinsurance		3.9			(0.4	)		0.4
Net Accident Year		66.7			65.2			67.2	%
Impact of Development and Other (1)		(10.9	)		(8.3	)
Net Calendar Year		55.8	%		56.9	%

	CNA Commercial
	2010 YTD			2009 FY			2009 FY
	Evaluated at			Evaluated at			Evaluated at
	9/30/10			12/31/09			9/30/10
Gross Accident Year		72.9	%		71.3	%		70.5	%
Impact of Reinsurance		3.1			3.3			3.8
Net Accident Year		76.0			74.6			74.3	%
Impact of Development and Other (1)		(7.7	)		(5.0	)
Net Calendar Year		68.3	%		69.6	%

	P&C Operations
	2010 YTD			2009 FY			2009 FY
	Evaluated at			Evaluated at			Evaluated at
	9/30/10			12/31/09			9/30/10
Gross Accident Year		67.5	%		68.3	%		68.5	%
Impact of Reinsurance		4.4			2.2			2.7
Net Accident Year		71.9			70.5			71.2	%
Impact of Development and Other (1)		(9.2	)		(6.5	)
Net Calendar Year		62.7	%		64.0	%

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

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