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) July 28, 2005

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.)

CNA Center, Chicago, Illinois	60685
(Address of principal executive offices)	(Zip Code)

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

Not Applicable

(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))

Page 1 of 2

Item 2.02 Results of Operations and Financial Condition.

On July 28, 2005, CNA Financial Corporation issued a press release and posted a financial supplement providing information on its results of operations for the second quarter 2005. 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 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 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.

(c) Exhibits:

Exhibit No.	Description
99.1	CNA Financial Corporation press release, issued July 28, 2005, providing information on the second quarter 2005 results of operations.
99.2	CNA Financial Corporation financial supplement, posted July 28, 2005, providing supplemental financial information for the second quarter 2005.

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 July 28, 2005	/s/ D. Craig Mense
	(Signature)
	By: D. Craig Mense Its: Executive Vice President and Chief Financial Officer

Page 2 of 2

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACT:
MEDIA:	ANALYSTS:
Charles M. Boesel, 312/822-2592	Dawn M. Jaffray, 312/822-7757
Katrina W. Parker, 312/822-5167	Kenneth S. De Vries, 312/822-1111

CNA FINANCIAL ANNOUNCES
2nd QUARTER RESULTS

CHICAGO, July 28, 2005 — CNA Financial Corporation (NYSE: CNA) today announced second quarter of 2005 results, which included the following items:

• Net income for the second quarter of 2005 of $288 million as compared to $293 million for the same period in 2004

• Net operating income for the second quarter of 2005 of $272 million as compared to $175 million for the same period in 2004

• Property and Casualty combined ratio of 99.9%

• Net income and net operating income for the second quarter of 2005 included a $115 million after-tax benefit related to a Federal income tax settlement, as well as a $36 million after-tax loss resulting from a reinsurance commutation. These results are included in the Corporate and Other Non-core segment

• Book value per common share increased to $34.48 from $31.88 at March 31, 2005

	Results for the Three Months Ended				Results for the Six Months Ended
	June 30				June 30
($ millions, except per share data)	2005		2004		2005		2004
			Restated				Restated
Net operating income (a)	$	272	$	175	$	464	$	384
Net realized investment gains (losses)		16		118		2		(215	)
Net income	$	288	$	293	$	466	$	169
Net income per share results available to common stockholders (b)	$	1.06	$	1.08	$	1.69	$	0.53

(a)

Management utilizes the net operating income financial measure to monitor the Company’s operations. Please refer to Note N to the Consolidated Financial Statements within the 2004 10-K/A for further discussion of this measure.

(b)

The three and six months ended June 30, 2005 per share results available to common stockholders are reduced by $18 million and $35 million, or $0.06 per share and $0.13 per share, of undeclared preferred stock dividends. The three and six months ended June 30, 2004 per share results available to common stockholders are reduced by $16 million and $32 million, or $0.06 per share and $0.13 per share, of undeclared preferred stock dividends.

Page 1 of 7

Net income for the three months ended June 30, 2005 decreased $5 million as compared with the same period in 2004. Net operating income for the three months ended June 30, 2005 increased $97 million as compared with the same period in 2004. Operating results for the Property and Casualty Operations were comparable to the prior year period and produced a combined ratio of 99.9%. Contributing to 2005 net operating income was a $115 million after-tax benefit related to a Federal income tax settlement and a release of Federal income tax reserves which was recorded in the Corporate and Other Non-core segment. Also impacting 2005 net operating income within the Corporate and Other Non-core segment was a $36 million after-tax loss resulting from the commutation of a 1992 finite reinsurance contract.

We are pleased to report another solid quarter,” said Steve Lilienthal, Chairman and Chief Executive Officer of the CNA insurance companies. “While we were helped by a favorable tax settlement, our results also reflect consistent progress across the enterprise. Our core Property & Casualty Operations held a steady course in the second quarter – disciplined underwriting, improving retention and selective new business. Even with the softening of the commercial lines marketplace, we continue to find profitable opportunities to grow the CNA franchise.”

Net realized investment gains for the three months ended June 30, 2005 decreased $102 million as compared with the same period in 2004. This decline was primarily driven by equity and derivative securities results, which in 2004 included $105 million after-tax from the disposition of the Company’s equity holdings of Canary Wharf Group PLC (Canary Wharf), a London-based real estate investment. The second quarter of 2005 included an impairment loss of $13 million after-tax related to loans made under a credit facility to a national contractor.

Net income for the six months ended June 30, 2005 increased $297 million as compared with the same period in 2004. Net operating income for the six months ended June 30, 2005 increased $80 million as compared with the same period in 2004 due to the same reasons as for the three month period. The Property and Casualty Operations produced a combined ratio of 99.4% for the six months ended June 30, 2005.

Net realized investment gains for the six months ended June 30, 2005 increased $217 million as compared with the same period in 2004. Net realized investment results in 2004 were impacted by a $389 million after-tax loss recorded on the sale of the individual life insurance business and the Canary Wharf gain described above. The 2005 results include an impairment loss of $22 million after-tax related to loans made under a credit facility to a national contractor.

Page 2 of 7

Segment Results for the Three Months Ended June 30, 2005

										Corporate
	Standard		Specialty		Total P&C		Life & Group			& Other
($ millions)	Lines		Lines		Ops.		Non-Core			Non-Core			Total
Net operating income	$	100	$	81	$	181	$	5		$	86		$	272
Net realized investment gains (losses)		17		5		22		(1	)		(5	)		16
Net income	$	117	$	86	$	203	$	4		$	81		$	288

Segment Results for the Three Months Ended June 30, 2004 Restated

										Corporate
	Standard		Specialty		Total P&C		Life & Group			& Other
($ millions)	Lines		Lines		Ops.		Non-Core			Non-Core		Total
Net operating income (loss)	$	98	$	81	$	179	$	(26	)	$	22	$	175
Net realized investment gains		50		18		68		14			36		118
Net income (loss)	$	148	$	99	$	247	$	(12	)	$	58	$	293

Segment Results for the Six Months Ended June 30, 2005

										Corporate
	Standard		Specialty		Total P&C		Life & Group			& Other
($ millions)	Lines		Lines		Ops.		Non-Core			Non-Core			Total
Net operating income	$	201	$	160	$	361	$	6		$	97		$	464
Net realized investment gains (losses)		9		8		17		(4	)		(11	)		2
Net income (loss)	$	210	$	168	$	378	$	2		$	86		$	466

Segment Results for the Six Months Ended June 30, 2004 Restated

										Corporate
	Standard		Specialty		Total P&C		Life & Group			& Other
($ millions)	Lines		Lines		Ops.		Non-Core			Non-Core		Total
Net operating income (loss)	$	212	$	156	$	368	$	(7	)	$	23	$	384
Net realized investment gains (losses)		88		31		119		(387	)		53		(215	)
Net income (loss)	$	300	$	187	$	487	$	(394	)	$	76	$	169

Property & Casualty Operations Gross Written Premiums

	Three months ended June 30				Six months ended June 30
($ millions)	2005		2004		2005		2004
Standard Lines	$	1,543	$	1,508	$	3,059	$	3,073
Specialty Lines		688		676		1,457		1,386
Total P&C Operations	$	2,231	$	2,184	$	4,516	$	4,459

Page 3 of 7

Property & Casualty Operations Net Written Premiums

	Three months ended June 30				Six months ended June 30
($ millions)	2005		2004		2005		2004
Standard Lines	$	1,134	$	1,209	$	2,305	$	2,474
Specialty Lines		595		592		1,189		1,173
Total P&C Operations	$	1,729	$	1,801	$	3,494	$	3,647

Property & Casualty Calendar Year Loss Ratios

	Three months ended June 30		Six months ended June 30
	2005	2004	2005	2004
		Restated		Restated
Standard Lines	71.2%	70.5%	71.1%	68.0%
Specialty Lines	69.0%	64.2%	65.8%	63.6%
Total P&C Operations	70.4%	68.6%	69.3%	66.7%
Total P&C Companies (a)	79.7%	74.4%	77.1%	72.9%

(a) P&C Companies includes Standard Lines, Specialty Lines and P&C business written in Life and Group Non-Core and Corporate and Other Non-Core, including CNA Re and asbestos, environmental pollution and mass tort exposures.

Property & Casualty Calendar Year Combined Ratios

	Three months ended June 30		Six months ended June 30
	2005	2004	2005	2004
		Restated		Restated
Standard Lines	103.4%	99.7%	103.5%	99.7%
Specialty Lines	94.0%	90.0%	91.8%	90.0%
Total P&C Operations	99.9%	96.8%	99.4%	96.8%
Total P&C Companies (a)	110.6%	101.7%	108.5%	102.7%

(a) P&C Companies includes Standard Lines, Specialty Lines and P&C business written in Life and Group Non-Core and Corporate and Other Non-Core, including CNA Re and asbestos, environmental pollution and mass tort exposures.

Property & Casualty Gross Accident Year Loss Ratios

	Accident year 2005	Accident year 2004	Accident year 2004
	evaluated at	evaluated at	evaluated at
	June 30, 2005	December 31, 2004	June 30, 2005
Standard Lines	63.0%	67.2%	64.0%
Specialty Lines	62.4%	64.1%	57.7%
Total P&C Operations	62.8%	66.3%	62.1%

Property & Casualty Net Accident Year Loss Ratios

	Accident year 2005	Accident year 2004	Accident year 2004
	evaluated at	evaluated at	evaluated at
	June 30, 2005	December 31, 2004	June 30, 2005
Standard Lines	64.4%	69.2%	65.6%
Specialty Lines	62.3%	63.5%	57.4%
Total P&C Operations	63.7%	67.4%	63.0%

Page 4 of 7

Business Operating Highlights

Standard Lines includes standard property and casualty coverages sold to small and middle market commercial businesses primarily through an independent agency distribution system, and excess and surplus lines, as well as insurance and risk management products sold to large corporations.

• Net written premiums decreased $75 million for the second quarter of 2005 as compared with the same period in 2004. Standard Lines retention improved to 78% while average rates decreased 2% during the second quarter of 2005. Disciplined underwriting in a more competitive marketplace contributed to the decline in writings.

• Net operating income was essentially flat with the prior year period. The current quarter results were adversely impacted by $25 million after-tax of unfavorable net prior year development, driven by the workers’ compensation line. This was offset by improved current accident year results and net investment income.

• Net income for the second quarter of 2005 decreased $31 million as compared with the same period in 2004, primarily due to decreased net realized investment results.

Specialty Lines provides a broad array of professional, financial and specialty property and casualty products and services.

• Net written premiums increased $3 million for the second quarter of 2005 as compared with the same period in 2004. Specialty Lines retention improved to 86% while average rates increased 2% during the second quarter of 2005.

• Net operating income was flat compared to the prior year period. The current quarter results were adversely impacted by a $17 million loss, after the impact of taxes and minority interest, in the surety line of business related to a large national contractor and $8 million after-tax of unfavorable net prior year development. This was primarily offset by improved net investment income and improvements in the current accident year results for the remaining specialty lines.

• Net income for the second quarter of 2005 decreased $13 million as compared with the same period in 2004, primarily due to decreased net realized investment results.

Life and Group Non-Core primarily includes the results of the life and group lines of business that have either been sold or placed in run-off. The Individual Life business was sold on April 30, 2004 and the Specialty Medical business was sold on January 6, 2005.

• Net earned premiums were flat for the second quarter of 2005 as compared with the same period in 2004. Net earned premiums consist primarily of premiums from the group and individual long term care businesses.

• Net results for the second quarter of 2005 increased $16 million as compared with the same period in 2004. The increase was largely due to the negative impact on second quarter of 2004 results from a $22 million after-tax increase in insurance and uncollectible reinsurance reserves, related to the Company’s past participation in accident and health reinsurance programs, and improved results in the long term care business.

Page 5 of 7

Corporate and Other Non-Core contains certain corporate expenses such as interest on corporate debt, and losses and expenses related to the centralized adjusting and settlement of asbestos, environmental pollution and mass tort claims. In addition, this segment includes the results of certain property and casualty insurance run-off operations, including CNA Re.

• Net results for the second quarter of 2005 increased $23 million as compared with the same period in 2004, primarily due to the $115 million favorable impact of the Federal income tax settlement described above. This improvement was partially offset by increased unfavorable net prior year development primarily driven by the commutation of a finite reinsurance contract put in place in 1992. CNA recaptured $400 million of previously ceded losses and received $344 million of cash. The commutation was economically attractive because of the reinsurance agreement’s contractual interest rate and maintenance charges.

Net Investment Income

Pretax net investment income for the second quarter of 2005 increased by $58 million over the same period of 2004. The increase relates in part to an expanded asset base in the fixed maturity sector. In addition, short-term yields improved significantly.

About the Company

CNA is the country’s seventh largest commercial insurance writer and the 14^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 service mark, trade name and domain name of CNA Financial Corporation.

Conference Call and Webcast Information:

A conference call for investors and the professional investment community will be held from 10:00 a.m. to 11:00 a.m. ET today. On the conference call will be Stephen W. Lilienthal, Chairman and Chief Executive Officer of the CNA insurance companies, and other members of senior management. Participants can access the call by dialing (800) 946-0712 or for international callers (719) 457-2641. 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 on CNA’s website through August 4, 2005. The replay can also be accessed by dialing (888) 203-1112 or for international callers (719) 457-0820 and using passcode 8469151. Financial supplement information related to the second quarter results is available on the investor relations pages of the CNA Website or by contacting Ken De Vries at (312) 822-1111.

Page 6 of 7

FORWARD-LOOKING STATEMENT

This press release includes statements which relate to anticipated future events (forward-looking statements) rather than actual present conditions or historical events. You can identify forward-looking statements because generally they 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. For a detailed description of these risks and uncertainties 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. 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.

In evaluating the results of the Standard Lines and Specialty Lines, management utilizes the combined ratio, the loss ratio, the expense ratio, and the dividend ratio. These ratios are calculated using 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 underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums. The dividend ratio is the ratio of dividends incurred to net earned premiums. The combined ratio is the sum of the loss, expense and dividend ratios.

This press release may also contain financial measures that are not in accordance with GAAP. For reconciliations of non-GAAP measures to the most comparable GAAP measures, refer to this press release and the financial supplement posted on the Company’s website.

# # #

Page 7 of 7

EX-99.2

EXHIBIT 99.2

CNA Financial Corporation

Supplemental Financial Information
June 30, 2005

CNA Financial Corporation
Table of Contents
June 30, 2005

	Page
Supplemental Financial Information		i
Restatement for Reinsurance and Equity Investee Accounting		ii
Statements of Operations		1
Components of Net Income and Per Share Data		2
Selected Balance Sheet Data and Statements of Cash Flows Data		3
Claim & Claim Adjustment Expense Reserve Data		4
Claim & Claim Adjustment Expense Reserve Rollforward		5
Investments by Segment Aggregation		6
Property & Casualty Results of Operations (Three Months Ended)		7
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Three Months Ended)		8
Property & Casualty Results of Operations (Six Months Ended)		9
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Six Months Ended)		10
Property & Casualty Operations and Corporate & Other Non-Core Segment — Catastrophe Losses		11
Analysis of Pretax Net Investment Income		12
Statutory Data — Preliminary		13
Property & Casualty Operations Loss and LAE Ratio Analysis		14
Life & Group Non-Core Segment — GAAP Results of Operations (Six Months Ended)		15
Asbestos Summary by Policyholder Category		16

CNA Financial Corporation

Supplemental Financial Information

DEFINITIONS AND PRESENTATION

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

• Life & Group Non-Core segment primarily includes the results of the life and group lines of business that have been sold or placed in run-off.

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

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

• Underwriting results are net earned premiums less net incurred claims, the costs incurred to settle claims, and acquisition, underwriting, and dividend expenses.

• Management utilizes the net operating income financial measure to monitor the Company’s operations. Please refer to Note N to the Consolidated Financial Statements within the 2004 10-K/A for further discussion of this measure.

• In evaluating the results of the Standard Lines and Specialty Lines, management utilizes the combined ratio, the loss ratio, the expense ratio, and the dividend ratio. These ratios are calculated using 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 underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums. The dividend ratio is the ratio of dividends incurred to net earned premiums. The combined ratio is the sum of loss, expense and dividend ratios.

• Limited partnerships (LPs) are a relatively small portion of CNA’s overall investment portfolio. The majority of the LPs invest in a substantial number of securities that are readily marketable. CNA is primarily a passive investor in such partnerships and does not have influence over the partnerships’ management, who are committed to operate them according to established guidelines and strategies. These strategies may include the use of leverage and hedging techniques that potentially introduce more volatility and risk to the partnerships.

• On April 30, 2004, CNA completed the sale of its individual life insurance business. The business sold included term, universal and permanent life insurance policies and individual annuity products. CNA’s individual long term care and structured settlement businesses were excluded from the sale. Consideration from the sale was approximately $700 million, resulting in an after-tax realized investment loss on the sale of $389 million. The results of the business sold through the sale date are included in the statements of operations for the three and six months ended June 30, 2004. As a result of the sale, income statement results for 2005 are not comparable to the corresponding 2004 results.

• All amounts are in millions, except for per share and ratio information.

• Certain immaterial differences are due to rounding.

 i

CNA Financial Corporation

Supplemental Financial Information

Restatement for Reinsurance and Equity Investee Accounting

Subsequent to the issuance of CNA’s (the Company) 2004 Form 10-K, the Company revised its accounting for several reinsurance contracts, primarily with a former affiliate, and its equity accounting for that affiliate. The Company restated its previously reported financial statements as of December 31, 2004, 2003 and 2002 and all related disclosures, as well as its interim financial data for all interim periods of 2004 and 2003, through the filing of a Form 10-K/A. This Financial Supplement reflects the effects of the restatement. The restatement is based upon reconsideration of the Company’s accounting for its former equity interest in Accord Re Ltd. (Accord) and for several reinsurance contracts with Accord, but also includes two reinsurance agreements with unaffiliated parties that are immaterial in the aggregate. A subsidiary of The Continental Corporation (TCC) acquired a 49% ownership interest in Accord, a Bermuda company, in 1989 upon Accord’s formation. TCC also provided capital support to Accord through a guarantee from a TCC subsidiary. TCC was acquired by the Company in 1995.

Reinsurance relationships with Accord involved both property and casualty assumed reinsurance risks that were written by TCC subsidiaries and 100% ceded to Accord or reinsured from other cedents by Accord. Stop-loss protection in relation to those risks was obtained by Accord from a wholly-owned TCC subsidiary.

All of the Company’s reinsurance agreements with Accord relating to property risks were commuted as of year-end 2001, leaving six reinsurance agreements with Accord relating to casualty risks outstanding at that time. As of March 31, 2005 the Company provides no capital support to and has no ownership interest in Accord. During the period of the Company’s minority ownership Accord also maintained reinsurance relationships with reinsurers unaffiliated with the Company.

As previously reported the Company continues to respond to various subpoenas, interrogatories and other requests for information received from state and federal regulatory authorities relating to on-going insurance industry investigations of non-traditional insurance products, including finite reinsurance. In the course of complying with these requests the Company conducted a comprehensive review of its finite reinsurance relationships, including contracts with Accord.

The Company accounted for its reinsurance cessions to Accord and related retrocessions from Accord as reinsurance. In connection with the aforementioned review, the Company has now concluded that the reinsurance cession and retrocession should be viewed as a single transaction which does not transfer risk. The restatement corrections apply deposit accounting to the Company’s reinsurance cessions to Accord. The restatement corrections also include adjustments to the Company’s historical equity method accounting for its ownership and economic interest in Accord, including the effects of applying deposit accounting to certain of Accord’s reinsurance contracts with parties other than the Company. The remaining restatement corrections relate to applying deposit accounting to two small reinsurance treaties unrelated to Accord that were previously accounted for using reinsurance accounting.

The impact of this revised accounting resulted in a reduction to stockholders’ equity as of December 31, 2004 of $29 million, or 0.3%, and an increase in net income for the three months and six months ended June 30, 2004 of $4 million and $5 million, or 1.4% and 3.0%. The net income adjustment increased earnings per share for the three months and six months ended June 30, 2004 by $0.01 per share for both periods.

 ii

CNA FINANCIAL CORPORATION
Financial Supplement
Statements of Operations

PERIOD ENDED JUNE 30	Three Months									Six Months
							Fav / (Unfav)									Fav / (Unfav)
(In millions)	2005			2004			% Change			2005			2004			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,912		$	2,106			(9)	%	$	3,811		$	4,274			(11)	%
Net investment income		439			381			15			845			856			(1	)
Realized investment gains (losses) net of participating policyholders’ and minority interests		26			105			(75	)		7			(353	)		102
Other revenues		193			72			168			271			154			76
Total revenues		2,570			2,664			(4	)		4,934			4,931			—
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,581			1,620			2			3,015			3,258			7
Other operating expenses		625			682			8			1,277			1,447			12
Interest		30			31			3			67			66			(2	)
Total claims, benefits and expenses		2,236			2,333			4			4,359			4,771			9
Income before income tax and minority interest		334			331			1			575			160			N/A
Income tax (expense) benefit		(48	)		(31	)		(55	)		(104	)		22			N/A
Minority interest		2			(7	)		129			(5	)		(13	)		62
Net income	$	288		$	293			(2)	%	$	466		$	169			176	%

1

CNA FINANCIAL CORPORATION
Financial Supplement
Components of Net Income and Per Share Data

PERIOD ENDED JUNE 30	Three Months							Six Months
					Fav / (Unfav)								Fav / (Unfav)
(In millions, except per share data)	2005		2004		% Change			2005		2004			% Change
COMPONENTS OF NET INCOME
Net operating income	$	272	$	175		55	%	$	464	$	384			21	%
Net realized investment gains (losses), net of participating policyholders’ and minority interests		16		118		(86	)		2		(215	)		101
Net income	$	288	$	293		(2)	%	$	466	$	169			176	%
BASIC AND DILUTED EARNINGS PER SHARE
Basic and diluted earnings per share available to common stockholders (1)	$	1.06	$	1.08		(2)	%	$	1.69	$	0.53			N/A	%
Weighted average outstanding common stock and common stock equivalents		256.0		255.9					256.0		255.9

(1) The three and six months ended June 30, 2005 per share results available to common stockholders are reduced by $18 million and $35 million, or $0.06 per share and $0.13 per share, of undeclared preferred stock dividends. The three and six months ended June 30, 2004 per share results available to common stockholders are reduced by $16 million and $32 million, or $0.06 per share and $0.13 per share, of undeclared preferred stock dividends.

2

CNA FINANCIAL CORPORATION
Financial Supplement
Selected Balance Sheet Data and Statements of Cash Flows Data

(In millions, except per share data)	June 30, 2005		December 31, 2004
Total assets	$	62,617	$	62,411
Insurance reserves		42,935		43,653
Debt		1,751		2,257
Total liabilities		52,603		52,958
Minority interest		276		275
Accumulated other comprehensive income		742		650
Total stockholders’ equity		9,738		9,178
Book value per common share (1)	$	34.48	$	32.43
Book value per common share excluding unrealized gain or loss on fixed maturity securities (1)	$	31.30	$	29.74
Outstanding shares of common stock (in millions of shares)		256.0		256.0

THREE MONTHS ENDED
JUNE 30
(In millions)	2005			2004
Net cash flows provided by operating activities	$	720		$	646
Net cash flows used by investing activities		(249	)		(101	)
Net cash flows used by financing activities		(494	)		(523	)
Net cash flows	$	(23	)	$	22

SIX MONTHS ENDED
JUNE 30
(In millions)	2005			2004
Net cash flows provided by operating activities	$	844		$	683
Net cash flows used by investing activities		(364	)		(542	)
Net cash flows used by financing activities		(505	)		(177	)
Net cash flows	$	(25	)	$	(36	)

(1) Book value per common share as of June 30, 2005 and December 31, 2004 excludes $750 million and $750 million of preferred stock (Series H) and $162 million and $127 million of cumulative preferred dividends.

3

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

CLAIM & CLAIM ADJUSTMENT EXPENSE RESERVES
(In millions)	Standard Lines		Specialty Lines		P&C Operations
As of June 30, 2005
Gross	$	14,171	$	4,996	$	19,167
Ceded		4,608		1,550		6,158
Net		9,563		3,446		13,009
As of December 31, 2004
Gross		14,302		4,860		19,162
Ceded		4,994		1,627		6,621
Net	$	9,308	$	3,233	$	12,541

CLAIM & CLAIM ADJUSTMENT EXPENSE RESERVES	Life & Group		Corporate & Other
(In millions)	Non-Core		Non-Core		Total Operations
As of June 30, 2005
Gross	$	3,592	$	8,039	$	30,798
Ceded		1,757		4,716		12,631
Net		1,835		3,323		18,167
As of December 31, 2004
Gross		3,680		8,681		31,523
Ceded		1,856		5,402		13,879
Net	$	1,824	$	3,279	$	17,644

4

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

PERIOD ENDED JUNE 30	Three Months			Six Months
(In millions)	Ended			Ended
Claim & claim adjustment expense reserves, beginning of period
Gross	$	31,113		$	31,523
Ceded		13,496			13,879
Net		17,617			17,644
Net incurred claim & claim adjustment expenses		1,441			2,841
Net claim & claim adjustment expense payments		(891	)		(2,318	)
Claim & claim adjustment expense reserves, end of period
Net		18,167			18,167
Ceded		12,631			12,631
Gross	$	30,798		$	30,798

5

CNA FINANCIAL CORPORATION
Financial Supplement
Investments by Segment Aggregation

	June 30, 2005				December 31, 2004
(In millions)	Book Value		Fair Value		Book Value		Fair Value
Property & Casualty and Corporate & Other Non-Core:
Fixed Maturities — Taxable	$	13,916	$	14,111	$	15,072	$	15,346
Fixed Maturities — Tax Exempt		9,300		9,480		7,680		7,800
Equities		245		343		232		351
Short-term		3,682		3,682		3,599		3,600
Limited Partnership Investments		1,181		1,181		1,195		1,195
Mortgage Loans & Other		34		34		34		26
Subtotal		28,358		28,831		27,812		28,318
Securities Lending Collateral		946		946		904		904
Total Investments	$	29,304	$	29,777	$	28,716	$	29,222
Life & Group Non-Core:
Fixed Maturities — Taxable	$	6,637	$	7,383	$	6,495	$	7,124
Fixed Maturities — Tax Exempt		1,437		1,568		1,019		1,057
Equities		132		149		88		105
Short-term		637		637		1,345		1,345
Limited Partnership Investments		381		381		354		354
Mortgage Loans & Other		21		10		23		10
Subtotal		9,245		10,128		9,324		9,995
Securities Lending Collateral		35		35		14		14
Total Investments	$	9,280	$	10,163	$	9,338	$	10,009
Total Investments	$	38,584	$	39,940	$	38,054	$	39,231

6

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

THREE MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
JUNE 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2005			2004			% Change			2005			2004			% Change			2005			2004			% Change
Gross written premiums	$	1,543		$	1,508			2	%	$	688		$	676			2	%	$	2,231		$	2,184			2	%
Net written premiums		1,134			1,209			(6	)		595			592			1			1,729			1,801			(4	)
Net earned premiums		1,084			1,315			(18	)		630			567			11			1,714			1,882			(9	)
Claim and claim adjustment expenses		772			927			17			435			364			(20	)		1,207			1,291			7
Acquisition expenses		201			258			22			115			106			(8	)		316			364			13
Underwriting expenses		139			141			1			41			39			(5	)		180			180			—
Policyholders’ dividends		8			(15	)		(153	)		1			1			—			9			(14	)		(164	)
Underwriting income (loss)		(36	)		4			N/A			38			57			(33	)		2			61			(97	)
Net investment income		171			119			44			67			59			14			238			178			34
Other revenues		27			30			(10	)		29			32			(9	)		56			62			(10	)
Other expenses		33			28			(18	)		25			28			11			58			56			(4	)
Income before income tax, minority interest and net realized investment gains		129			125			3			109			120			(9	)		238			245			(3	)
Income tax expense		(27	)		(25	)		(8	)		(32	)		(34	)		6			(59	)		(59	)		—
Minority interest		(2	)		(2	)		—			4			(5	)		180			2			(7	)		129
Net operating income		100			98			2			81			81			—			181			179			1
Realized investment gains		25			77			(68	)		8			30			(73	)		33			107			(69	)
Income tax expense on realized investment gains		(8	)		(27	)		70			(3	)		(12	)		75			(11	)		(39	)		72
Net income	$	117		$	148			(21)	%	$	86		$	99			(13)	%	$	203		$	247			(18)	%
Financial Ratios
Loss & LAE		71.2	%		70.5	%					69.0	%		64.2	%					70.4	%		68.6	%
Acquisition expense		18.5			19.6						18.2			18.6						18.4			19.3
Underwriting expense		12.9			10.7						6.6			7.0						10.5			9.6
Dividends		0.8			(1.1	)					0.2			0.2						0.6			(0.7	)
Expense ratio, including dividends		32.2			29.2						25.0			25.8						29.5			28.2
Combined ratio		103.4	%		99.7	%					94.0	%		90.0	%					99.9	%		96.8	%

7

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)	2005			2004			2005			2004			% Change			2005			2004			% Change			2005			2004			% Change
Net earned premiums	$	1,714		$	1,882		$	204		$	202			1	%	$	(6	)	$	22			(127	)%	$	1,912		$	2,106			(9	)%
Insurance claims & policyholders’ benefits		1,207			1,291			284			329			14			80			17			N/A			1,571			1,637			4
Policyholders’ dividends		9			(14	)		—			(3	)		N/A			1			—			N/A			10			(17	)		(159	)
Insurance related expenses		496			544			77			68			(13	)		(4	)		23			117			569			635			10
Net investment income		238			178			146			142			3			55			61			(10	)		439			381			15
Other revenues		56			62			25			26			(4	)		112			(16	)		N/A			193			72			168
Other expenses		58			56			16			20			20			12			2			N/A			86			78			(10	)
Income (loss) before income tax, minority interest and net realized investment gains (losses)		238			245			(2	)		(44	)		95			72			25			188			308			226			(36	)
Income tax (expense) benefit		(59	)		(59	)		7			18			(61	)		14			(3	)		N/A			(38	)		(44	)		14
Minority interest		2			(7	)		—			—			N/A			—			—			N/A			2			(7	)		129
Net operating income (loss)		181			179			5			(26	)		119			86			22			N/A			272			175			55
Realized investment gains (losses)		33			107			(1	)		(56	)		98			(6	)		54			(111	)		26			105			(75	)
Income tax (expense) benefit on realized investment gains (losses)		(11	)		(39	)		—			70			N/A			1			(18	)		106			(10	)		13			(177	)
Net income (loss)	$	203		$	247		$	4		$	(12	)		133	%	$	81		$	58			40	%	$	288		$	293			(2	)%

Other Financial Data	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
Property & Casualty													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
Company Information	2005			2004			2005			2004			% Change			2005			2004			% Change			2005			2004			% Change
Gross written premiums	$	2,231		$	2,184		$	206		$	293			(30	)%	$	300		$	481			(38	)%	$	2,737		$	2,958			(7	)%
Net written premiums		1,729			1,801			199			163			22			(7	)		(4	)		(75	)		1,921			1,960			(2	)
Net earned premiums		1,714			1,882			203			150			35			(7	)		23			(130	)		1,910			2,055			(7	)
Underwriting gain (loss)		2			61			(114	)		(84	)		(36	)%		(90	)		(13	)		N/A	%		(202	)		(36	)		N/A	%
Financial Ratios
Loss & LAE		70.4	%		68.6	%		115.1	%		146.1	%					N/M	%		N/M	%					79.7	%		74.4	%
Acquisition expense		18.4			19.3			24.0			(3.3	)					N/M			N/M						18.5			17.5
Underwriting expense		10.5			9.6			17.1			13.4						N/M			N/M						11.9			10.5
Dividends		0.6			(0.7	)		—			—						N/M			N/M						0.5			(0.7	)
Expense ratio, including dividends		29.5			28.2			41.1			10.1						N/M			N/M						30.9			27.3
Combined ratio		99.9	%		96.8	%		156.2	%		156.2	%					N/M	%		N/M	%					110.6	%		101.7	%

N/M = Not Meaningful

8

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

	Standard Lines									Specialty Lines									P&C Operations
SIX MONTHS ENDED
JUNE 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2005			2004			% Change			2005			2004			% Change			2005			2004			% Change
Gross written premiums	$	3,059		$	3,073			—	%	$	1,457		$	1,386			5	%	$	4,516		$	4,459			1	%
Net written premiums		2,305			2,474			(7	)		1,189			1,173			1			3,494			3,647			(4	)
Net earned premiums		2,253			2,573			(12	)		1,203			1,096			10			3,456			3,669			(6	)
Claim and claim adjustment expenses		1,602			1,750			8			792			698			(13	)		2,394			2,448			2
Acquisition expenses		447			529			16			230			203			(13	)		677			732			8
Underwriting expenses		271			293			8			80			82			2			351			375			6
Policyholders’ dividends		12			(6	)		N/A			2			3			33			14			(3	)		N/A
Underwriting income (loss)		(79	)		7			N/A			99			110			(10	)		20			117			(83	)
Net investment income		354			257			38			123			121			2			477			378			26
Other revenues		48			70			(31	)		60			57			5			108			127			(15	)
Other expenses		59			59			—			53			55			4			112			114			2
Income before income tax, minority interest and net realized investment gains		264			275			(4	)		229			233			(2	)		493			508			(3	)
Income tax expense		(59	)		(59	)		—			(68	)		(68	)		—			(127	)		(127	)		—
Minority interest		(4	)		(4	)		—			(1	)		(9	)		89			(5	)		(13	)		62
Net operating income		201			212			(5	)		160			156			3			361			368			(2	)
Realized investment gains		20			134			(85	)		9			50			(82	)		29			184			(84	)
Income tax expense on realized investment gains		(11	)		(46	)		76			(1	)		(19	)		95			(12	)		(65	)		82
Net income	$	210		$	300			(30	)%	$	168		$	187			(10	)%	$	378		$	487			(22	)%
Financial Ratios
Loss & LAE		71.1	%		68.0	%					65.8	%		63.6	%					69.3	%		66.7	%
Acquisition expense		19.8			20.6						19.1			18.5						19.6			19.9
Underwriting expense		12.0			11.3						6.7			7.6						10.1			10.3
Dividends		0.6			(0.2	)					0.2			0.3						0.4			(0.1	)
Expense ratio, including dividends		32.4			31.7						26.0			26.4						30.1			30.1
Combined ratio		103.5	%		99.7	%					91.8	%		90.0	%					99.4	%		96.8	%

9

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

	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
SIX MONTHS ENDED
JUNE 30													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2005			2004			2005			2004			% Change			2005			2004			% Change			2005			2004			% Change
Net earned premiums	$	3,456		$	3,669		$	370		$	528			(30	)%	$	(15	)	$	77			(119	)%	$	3,811		$	4,274			(11	)%
Insurance claims & policyholders’ benefits		2,394			2,448			518			736			30			88			73			(21	)		3,000			3,257			8
Policyholders’ dividends		14			(3	)		—			3			N/A			1			1			—			15			1			N/A
Insurance related expenses		1,028			1,107			138			176			22			7			50			86			1,173			1,333			12
Net investment income		477			378			252			348			(28	)		116			130			(11	)		845			856			1
Other revenues		108			127			58			60			(3	)		105			(33	)		N/A			271			154			76
Other expenses		112			114			30			41			27			29			25			(16	)		171			180			5
Income (loss) before income tax, minority interest and net realized investment gains (losses)		493			508			(6	)		(20	)		70			81			25			N/A			568			513			11
Income tax (expense) benefit		(127	)		(127	)		12			13			(8	)		16			(2	)		N/A			(99	)		(116	)		15
Minority interest		(5	)		(13	)		—			—			N/A			—			—			N/A			(5	)		(13	)		62
Net operating income (loss)		361			368			6			(7	)		186			97			23			N/A			464			384			21
Realized investment gains (losses)		29			184			(6	)		(618	)		99			(16	)		81			(120	)		7			(353	)		102
Income tax (expense) benefit on realized investment gains (losses)		(12	)		(65	)		2			231			(99	)		5			(28	)		118			(5	)		138			(104	)
Net income (loss)	$	378		$	487		$	2		$	(394	)		101	%	$	86		$	76			13	%	$	466		$	169			176	%

	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
Other Financial Data
Property & Casualty													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
Company Information	2005			2004			2005			2004			% Change			2005			2004			% Change			2005			2004			% Change
Gross written premiums	$	4,516		$	4,459		$	484		$	612			(21	)%	$	552		$	889			(38	)%	$	5,552		$	5,960			(7	)%
Net written premiums		3,494			3,647			371			339			9			(27	)		(20	)		(35	)		3,838			3,966			(3	)
Net earned premiums		3,456			3,669			364			316			15			(15	)		94			(116	)		3,805			4,079			(7	)
Underwriting gain (loss)		20			117			(227	)		(185	)		(23	)		(117	)		(41	)		(185	)		(324	)		(109	)		(197	)
Financial Ratios
Loss & LAE		69.3	%		66.7	%		124.5	%		136.9	%					N/M	%		N/M	%					77.1	%		72.9	%
Acquisition expense		19.6			19.9			20.3			7.5						N/M			N/M						19.5			19.1
Underwriting expense		10.1			10.3			17.6			14.2						N/M			N/M						11.5			10.8
Dividends		0.4			(0.1	)		—			—						N/M			N/M						0.4			(0.1	)
Expense ratio, including dividends		30.1			30.1			37.9			21.7						N/M			N/M						31.4			29.8
Combined ratio		99.4	%		96.8	%		162.4	%		158.6	%					N/M	%		N/M	%					108.5	%		102.7	%

N/M = Not Meaningful

10

====================================================================================================================================

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Operations and Corporate & Other Non-Core Segment — Catastrophe Losses

CATASTROPHE LOSSES (PRETAX)							Corporate & Other
(In millions)	Standard Lines		Specialty Lines		P&C Operations		Non-Core		Total
Three months ended June 30, 2005	$	5	$	—	$	5	$	—	$	5
Six months ended June 30, 2005		6		—		6		—		6
Three months ended June 30, 2004	$	4	$	1	$	5	$	—	$	5
Six months ended June 30, 2004		10		3		13		—		13

CATASTROPHE LOSSES (AFTER-TAX)							Corporate & Other
(In millions)	Standard Lines		Specialty Lines		P&C Operations		Non-Core		Total
Three months ended June 30, 2005	$	4	$	—	$	4	$	—	$	4
Six months ended June 30, 2005		4		—		4		—		4
Three months ended June 30, 2004	$	3	$	1	$	4	$	—	$	4
Six months ended June 30, 2004		7		2		9		—		9

11

CNA FINANCIAL CORPORATION
Financial Supplement
Analysis of Pretax Net Investment Income

(In millions)	Standard Lines
	1Q04			2Q04			3Q04			4Q04			YTD 2004			1Q05			2Q05			YTD 2005
Limited partnership income	$	37		$	13		$	12		$	39		$	101		$	42		$	22		$	64
Interest on funds withheld and other deposits		(38	)		(43	)		(44	)		(70	)		(195	)		(18	)		(34	)		(52	)
Income from trading securities		—			—			—			1			1			1			—			1
Other investment income		139			149			157			144			589			158			183			341
Net investment income	$	138		$	119		$	125		$	114		$	496		$	183		$	171		$	354

	Specialty Lines
	1Q04			2Q04			3Q04			4Q04			YTD 2004			1Q05			2Q05			YTD 2005
Limited partnership income	$	13		$	5		$	4		$	14		$	36		$	13		$	7		$	20
Interest on funds withheld and other deposits		(2	)		(2	)		(3	)		(7	)		(14	)		(12	)		(1	)		(13	)
Income from trading securities		—			—			—			—			—			—			—			—
Other investment income		51			56			60			57			224			55			61			116
Net investment income	$	62		$	59		$	61		$	64		$	246		$	56		$	67		$	123

	P&C Operations
	1Q04			2Q04			3Q04			4Q04			YTD 2004			1Q05			2Q05			YTD 2005
Limited partnership income	$	50		$	18		$	16		$	53		$	137		$	55		$	29		$	84
Interest on funds withheld and other deposits		(40	)		(45	)		(47	)		(77	)		(209	)		(30	)		(35	)		(65	)
Income from trading securities		—			—			—			1			1			1			—			1
Other investment income		190			205			217			201			813			213			244			457
Net investment income	$	200		$	178		$	186		$	178		$	742		$	239		$	238		$	477

	Life & Group Non-Core
	1Q04		2Q04		3Q04			4Q04		YTD 2004		1Q05			2Q05		YTD 2005
Limited partnership income	$	9	$	6	$	3		$	11	$	29	$	9		$	1	$	10
Interest on funds withheld and other deposits		—		—		—			—		—		—			—		—
Income from trading securities		20		14		(21	)		96		109		(31	)		14		(17	)
Other investment income		177		122		127			128		554		128			131		259
Net investment income	$	206	$	142	$	109		$	235	$	692	$	106		$	146	$	252

	Corporate & Other Non-Core
	1Q04			2Q04			3Q04			4Q04			YTD 2004			1Q05			2Q05			YTD 2005
Limited partnership income	$	16		$	6		$	6		$	18		$	46		$	15		$	8		$	23
Interest on funds withheld and other deposits		(8	)		(10	)		(8	)		(26	)		(52	)		(9	)		(15	)		(24	)
Income from trading securities		—			—			—			—			—			—			—			—
Other investment income		61			65			67			59			252			55			62			117
Net investment income	$	69		$	61		$	65		$	51		$	246		$	61		$	55		$	116

	Total Operations
	1Q04			2Q04			3Q04			4Q04			YTD 2004			1Q05			2Q05			YTD 2005
Limited partnership income	$	75		$	30		$	25		$	82		$	212		$	79		$	38		$	117
Interest on funds withheld and other deposits		(48	)		(55	)		(55	)		(103	)		(261	)		(39	)		(50	)		(89	)
Income from trading securities		20			14			(21	)		97			110			(30	)		14			(16	)
Other investment income		428			392			411			388			1,619			396			437			833
Net investment income	$	475		$	381		$	360		$	464		$	1,680		$	406		$	439		$	845

12

CNA FINANCIAL CORPORATION
Financial Supplement
Statutory Data — Preliminary

PERIOD ENDED JUNE 30	Three Months									Six Months
Income Statement	(Preliminary)						Fav / (Unfav)			(Preliminary)						Fav / (Unfav)
(In millions)	2005			2004			% Change			2005			2004			% Change
Property & Casualty Companies
Gross written premiums	$	2,458		$	2,878			(15	)%	$	4,985		$	5,788			(14	)%
Net written premiums		1,809			1,920			(6	)		3,611			3,788			(5	)
Net earned premiums		1,674			1,809			7			3,306			3,559			7
Claim and claim adjustment expenses		1,306			1,440			9			2,561			2,725			6
Acquisition expenses		294			323			9			628			671			6
Underwriting expenses		258			144			(79	)		500			374			(34	)
Policyholders’ dividends		7			9			22			12			22			45
Underwriting loss		(191	)		(107	)		(79	)		(395	)		(233	)		(70	)
Net investment income (1)		411			336			22			1,248			644			94
Other revenues/expenses		81			(80	)		N/A			44			(132	)		133
Income tax expense		(38	)		(79	)		52			(77	)		(192	)		60
Net realized gains		24			150			(84	)		47			316			(85	)
Net income	$	287		$	220			30	%	$	867		$	403			115	%
Financial Ratios
Loss and LAE		78.0	%		79.6	%					77.5	%		76.6	%
Acquisition expense		16.2			16.8						17.4			17.7
Underwriting expense		14.3			7.5						13.8			9.9
Policyholders’ dividends		0.4			0.5						0.4			0.6
Expense ratio		30.9			24.8						31.6			28.2
Combined ratio		108.9	%		104.4	%					109.1	%		104.8	%
Life Companies
Earned premium	$	2		$	366					$	6		$	821

SUPPLEMENTAL STATUTORY DATA	(Preliminary)
(In millions)	June 30, 2005		December 31, 2004
Property & Casualty Companies
Statutory surplus (2)	$	7,374	$	6,998
Life Companies
Statutory surplus	$	742	$	1,177

(1)	Includes $500 million of dividends from CCC’s life subsidiary, Continental Assurance Company, for the six months ended June 30, 2005.
(2)	Surplus includes the Property & Casualty Companies’ equity ownership of the life insurance subsidiary.

13

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

Standard Lines

	2005 YTD Evaluated			2004 FY Evaluated			2004 FY Evaluated
	at 06/30/05			at 12/31/04			at 06/30/05
Gross Accident Year		63.0	%		67.2	%		64.0	%
Impact of Reinsurance		1.4			2.0			1.6
Net Accident Year		64.4			69.2			65.6	%
Impact of Corporate Covers		0.7			(0.2	)
Impact of Development & Change in Allowance for Uncollectible Reinsurance		6.0			1.7
Net Calendar Year		71.1	%		70.7	%

Specialty Lines

	2005 YTD Evaluated			2004 FY Evaluated			2004 FY Evaluated
	at 06/30/05			at 12/31/04			at 06/30/05
Gross Accident Year		62.4	%		64.1	%		57.7	%
Impact of Reinsurance		(0.1	)		(0.6	)		(0.3	)
Net Accident Year		62.3			63.5			57.4	%
Impact of Corporate Covers		(1.1	)		0.9
Impact of Development & Change in Allowance for Uncollectible Reinsurance		4.6			(1.1	)
Net Calendar Year		65.8	%		63.3	%

P&C Operations

	2005 YTD Evaluated			2004 FY Evaluated			2004 FY Evaluated
	at 06/30/05			at 12/31/04			at 06/30/05
Gross Accident Year		62.8	%		66.3	%		62.1	%
Impact of Reinsurance		0.9			1.1			0.9
Net Accident Year		63.7			67.4			63.0	%
Impact of Corporate Covers		0.1			0.2
Impact of Development & Change in Allowance for Uncollectible Reinsurance		5.5			0.8
Net Calendar Year		69.3	%		68.4	%

14

CNA FINANCIAL CORPORATION
Financial Supplement
Life & Group Non-Core Segment — GAAP Results of Operations

SIX MONTHS ENDED
JUNE 30, 2005	Life & Group Non-Core			Life & Group Non-Core			Total Life & Group
(In millions)	excluding businesses sold (1)			businesses sold (2)			Non-Core as reported
Net earned premiums	$	365		$	5		$	370
Insurance claims & policyholders’ benefits		504			14			518
Policyholders’ dividends		(3	)		3			—
Insurance related expenses		87			51			138
Net investment income		248			4			252
Other revenues		38			20			58
Other expenses		31			(1	)		30
Income (loss) before income tax and net realized investment gains (losses)		32			(38	)		(6	)
Income tax (expense) benefit		(1	)		13			12
Net operating income (loss)		31			(25	)		6
Realized investment gains (losses)		(6	)		—			(6	)
Income tax (expense) benefit on realized investment gains (losses)		2			—			2
Net income (loss)	$	27		$	(25	)	$	2

SIX MONTHS ENDED
JUNE 30, 2004	Life & Group Non-Core			Life & Group Non-Core			Total Life & Group
(In millions)	excluding businesses sold (1)			businesses sold (2) (3)			Non-Core as reported
Net earned premiums	$	337		$	191		$	528
Insurance claims & policyholders’ benefits		585			151			736
Policyholders’ dividends		1			2			3
Insurance related expenses		78			98			176
Net investment income		297			51			348
Other revenues		33			27			60
Other expenses		26			15			41
Income (loss) before income tax and net realized investment gains (losses)		(23	)		3			(20	)
Income tax (expense) benefit		15			(2	)		13
Net operating income (loss)		(8	)		1			(7	)
Realized investment gains (losses)		13			(631	)		(618	)
Income tax (expense) benefit on realized investment gains (losses)		(5	)		236			231
Net income (loss)	$	—		$	(394	)	$	(394	)

(1)	Retained life and group businesses principally include group and individual long term care, structured settlements and institutional markets.
(2)	Life and group businesses sold include group, individual life, CNA Trust, and specialty medical. Included in this column are the effects of shared corporate overhead expenses which continue to be allocated to the sold businesses.
(3)	For the six months ended June 30, 2004, net realized investment losses for Life & Group Non-Core businesses sold include a pretax impairment loss of $622 million ($389 million after-tax) related to the individual life business.

15

CNA FINANCIAL CORPORATION
Financial Supplement
Asbestos Summary by Policyholder Category

			Net Paid		Net Asbestos		Percent of
	Number of		Losses in		Reserves		Asbestos
JUNE 30, 2005	Policyholders		2005 (In millions)		(In millions)		Net Reserves
Policyholders with Settlement Agreements
Structured Settlements		13	$	18	$	159		10	%
Wellington		4		2		16		1
Coverage in Place		34		7		70		4
Fibreboard		1		—		54		3
Total with Settlement Agreements		52		27		299		18
Other Policyholders with Active Accounts
Large Asbestos Accounts		187		29		304		19
Small Asbestos Accounts		1,060		14		120		8
Total Other Policyholders		1,247		43		424		27
Assumed Reinsurance & Pools				3		146		9
Unassigned IBNR (1)						751		46
Total		1,299	$	73	$	1,620		100	%

(1) IBNR includes claims that are incurred but not reported.

16