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) October 27, 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))

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TABLE OF CONTENTS

Press Release

Financial Supplement

Item 2.02 Results of Operations and Financial Condition.

On October 27, 2005, CNA Financial Corporation issued a press release and posted a financial supplement providing information on its results of operations for the third 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 October 27, 2005, providing information on the third quarter 2005 results of operations.
99.2	CNA Financial Corporation financial supplement, posted October 27, 2005, providing supplemental financial information for the third quarter 2005.

Page 2 of 3

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 October 27, 2005	/s/ D. Craig Mense
	(Signature)
	By: D. Craig Mense
	Its: Executive Vice President and Chief Financial Officer

Page 3 of 3

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	Cathleen R. Marine, 312/822-4159

CNA FINANCIAL ANNOUNCES
3rd QUARTER RESULTS

CHICAGO, October 27, 2005 -— CNA Financial Corporation (NYSE: CNA) today announced third quarter of 2005 results, which included the following items:

• Net income for the third quarter of 2005 of $3 million as compared with a net loss of $27 million in the third quarter of 2004

• Net operating loss for the third quarter of 2005 of $39 million as compared with net operating income of $15 million for the same period in 2004

• Third quarter 2005 results were negatively affected by $294 million after-tax due to the impact of third quarter catastrophes, primarily Hurricane Katrina

• Property and Casualty combined ratio of 93.5% before the 26.4 point impact related to catastrophes

	Results for the Three Months Ended						Results for the Nine Months Ended
	September 30						September 30
($ millions, except per share data)	2005			2004			2005		2004
				Restated					Restated
Net operating income (loss) (a)	$	(39	)	$	15		$	425	$	399
Net realized investment gains (losses)		42			(42	)		44		(257	)
Net income (loss)	$	3		$	(27	)	$	469	$	142
Net income (loss) per share results available to common stockholders (b)	$	(0.06	)	$	(0.16	)	$	1.63	$	0.37

(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 nine months ended September 30, 2005 per share results available to common stockholders are reduced by $17 million and $52 million, or $0.07 per share and $0.20 per share, of undeclared preferred stock dividends. The three and nine months ended September 30, 2004 per share results available to common stockholders are reduced by $16 million and $48 million, or $0.06 per share and $0.19 per share, of undeclared preferred stock dividends.

Page 1 of  8

Net operating income for the three months ended September 30, 2005 decreased $54 million as compared with the same period in 2004. Operating results in the third quarter of 2005 were adversely impacted by third quarter catastrophes of $294 million after-tax. The third quarter of 2004 operating results were adversely impacted by catastrophes of $181 million after-tax. The Property & Casualty Operations produced a combined ratio of 93.5% before the 26.4 point impact of catastrophes in the third quarter 2005. In the third quarter 2004, Property & Casualty Operations produced a combined ratio of 96.1% before the 15.7 point impact of catastrophes.

Also contributing to operating results were increased net investment income and a decrease in the provision for uncollectible insurance receivables. Additionally, third quarter operating results were adversely impacted by lower earned premiums in the Standard Lines segment.

“In a quarter that witnessed the most costly hurricane in U.S. history, CNA held its own,” said Stephen W. Lilienthal, Chairman and Chief Executive Officer of the CNA insurance companies. “Net income was positive, and the underlying performance of our core Property & Casualty Operations was clearly reflected in the 93.5% combined ratio before catastrophes. We continue to focus on our key business drivers — disciplined risk selection, portfolio optimization and careful management of expenses.”

Net income for the three months ended September 30, 2005 increased $30 million as compared with the same period in 2004. Net income was affected by the factors mentioned above, as well as improved net realized investment gains. Net realized investment gains for the three months ended September 30, 2005 increased $84 million as compared with the same period in 2004. This increase was primarily driven by favorable results in derivative securities.

Net operating income for the nine months ended September 30, 2005 increased $26 million as compared with the same period in 2004. The primary drivers were improved net investment income and a $115 million after-tax benefit related to a Federal income tax settlement and a release of Federal income tax reserves. Also impacting 2005 net operating income were catastrophes, as discussed above, and increased unfavorable net prior year development. The Property and Casualty Operations produced a combined ratio of 97.4% for the nine months ended September 30, 2005 before the 8.8 point impact of catastrophes. For the nine months ended September 30, 2004, Property and Casualty Operations produced a combined ratio of 96.4% before the 5.3 point impact of catastrophes.

Net income for the nine months ended September 30, 2005 increased $327 million as compared with the same period in 2004, primarily due to realized investment gains. Net realized investment results for the nine months ended September 30, 2005 increased $301 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.

The 2005 catastrophe impacts discussed above are net of anticipated reinsurance recoveries, and include the impact of reinstatement premiums, insurance assessments and a bad debt provision for uncollectible insurance receivables. This estimate was developed after consideration of reported claims, the insured values of properties in the affected areas, modeled losses, industry loss estimates and the Company’s reinsurance coverage. Because of the nature of the four hurricanes, the estimate involves significant judgment due in part to the limited ability to access portions of the affected area, legal and regulatory uncertainties, the complexity of factors contributing to the losses and the preliminary nature of the information available. Accordingly, there can be no assurance that CNA’s ultimate cost for these catastrophes will not exceed this estimate.

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Segment Results for the Three Months Ended September 30, 2005

	Standard			Specialty		Total P&C			Life & Group			Corporate
												& Other
($ millions)	Lines			Lines		Ops.			Non-Core			Non-Core			Total
Net operating income (loss)	$	(144	)	$	108	$	(36	)	$	(35	)	$	32		$	(39	)
Net realized investment gains (losses)		33			11		44			(1	)		(1	)		42
Net income (loss)	$	(111	)	$	119	$	8		$	(36	)	$	31		$	3

Segment Results for the Three Months Ended September 30, 2004 (Restated)

	Standard			Specialty			Total P&C			Life & Group			Corporate
													& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income (loss)	$	(74	)	$	80		$	6		$	(13	)	$	22		$	15
Net realized investment gains (losses)		(23	)		(8	)		(31	)		2			(13	)		(42	)
Net income (loss)	$	(97	)	$	72		$	(25	)	$	(11	)	$	9		$	(27	)

Segment Results for the Nine Months Ended September 30, 2005

	Standard		Specialty		Total P&C		Life & Group			Corporate
										& Other
($ millions)	Lines		Lines		Ops.		Non-Core			Non-Core			Total
Net operating income (loss)	$	57	$	268	$	325	$	(29	)	$	129		$	425
Net realized investment gains (losses)		42		19		61		(5	)		(12	)		44
Net income (loss)	$	99	$	287	$	386	$	(34	)	$	117		$	469

Segment Results for the Nine Months Ended September 30, 2004 (Restated)

	Standard		Specialty		Total P&C		Life & Group			Corporate
										& Other
($ millions)	Lines		Lines		Ops.		Non-Core			Non-Core		Total
Net operating income (loss)	$	138	$	236	$	374	$	(20	)	$	45	$	399
Net realized investment gains (losses)		65		23		88		(385	)		40		(257	)
Net income (loss)	$	203	$	259	$	462	$	(405	)	$	85	$	142

Property & Casualty Operations Gross Written Premiums

	Three months ended September 30				Nine months ended September 30
($ millions)	2005		2004		2005		2004
Standard Lines	$	1,472	$	1,421	$	4,531	$	4,494
Specialty Lines		762		706		2,219		2,092
Total P&C Operations	$	2,234	$	2,127	$	6,750	$	6,586

Page 3 of  8

Property & Casualty Operations Net Written Premiums

	Three months ended September 30				Nine months ended September 30
($ millions)	2005		2004		2005		2004
Standard Lines	$	1,047	$	1,046	$	3,352	$	3,520
Specialty Lines		649		599		1,838		1,772
Total P&C Operations	$	1,696	$	1,645	$	5,190	$	5,292

Property & Casualty Calendar Year Loss Ratios

	Three months ended September 30						Nine months ended September 30
	2005			2004			2005			2004
Standard Lines		106.3	%		80.4	%		82.5	%		71.9	%
Specialty Lines		58.4	%		62.8	%		63.3	%		63.4	%
Total P&C Operations		88.7	%		74.6	%		75.7	%		69.3	%
Total P&C Companies (a)		94.7	%		80.6	%		82.9	%		75.4	%

(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 September 30						Nine months ended September 30
	2005			2004			2005			2004
Standard Lines		139.6	%		122.2	%		115.2	%		106.8	%
Specialty Lines		85.9	%		90.4	%		89.8	%		90.1	%
Total P&C Operations		119.9	%		111.8	%		106.2	%		101.7	%
Total P&C Companies (a)		126.1	%		117.5	%		114.3	%		107.4	%

(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 Loss and Combined Ratios Before Catastrophes

	Loss Ratios						Combined Ratios
	Three months ended			Nine months ended			Three months ended			Nine months ended
	September 30, 2005			September 30, 2005			September 30, 2005			September 30, 2005
Standard Lines		66.3	%		69.4	%		99.8	%		102.1	%
Specialty Lines		55.3	%		62.2	%		82.5	%		88.6	%
Total P&C Operations		62.3	%		66.8	%		93.5	%		97.4	%

Property & Casualty Calendar Year Loss and Combined Ratios Before Catastrophes

	Loss Ratios						Combined Ratios
	Three months ended			Nine months ended			Three months ended			Nine months ended
	September 30, 2004			September 30, 2004			September 30, 2004			September 30, 2004
Standard Lines		59.4	%		65.0	%		99.9	%		99.5	%
Specialty Lines		61.1	%		62.6	%		88.5	%		89.3	%
Total P&C Operations		59.9	%		64.3	%		96.1	%		96.4	%

Page 4 of  8

Property & Casualty Gross Accident Year Loss Ratios

	Accident year 2005			Accident year 2004			Accident year 2004
	evaluated at			evaluated at			evaluated at
	September 30, 2005			December 31, 2004			September 30, 2005
Standard Lines		76.7	%		67.2	%		63.4	%
Specialty Lines		61.5	%		64.1	%		56.7	%
Total P&C Operations		71.7	%		66.3	%		61.4	%

Property & Casualty Net Accident Year Loss Ratios

	Accident year 2005			Accident year 2004			Accident year 2004
	evaluated at			evaluated at			evaluated at
	September 30, 2005			December 31, 2004			September 30, 2005
Standard Lines		78.0	%		69.2	%		64.9	%
Specialty Lines		61.2	%		63.5	%		56.5	%
Total P&C Operations		71.9	%		67.4	%		62.3	%

Page 5 of  8

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. This business also includes excess and surplus lines, as well as insurance and risk management products sold to large corporations.

• Net written premiums for the third quarter of 2005 were flat as compared with the same period in 2004. Standard Lines retention improved to 78% while average rates decreased 2% during the third quarter of 2005.

• Net operating results decreased $70 million for the third quarter of 2005 as compared with the same period in 2004. The current quarter results were adversely affected by catastrophe impacts of $280 million after-tax and less favorable current accident year losses. Contributing to the current quarter results were improved net investment income and a decrease in the bad debt provision for insurance receivables. The third quarter of 2004 operating results included catastrophe impacts of $172 million after-tax and a $62 million after-tax bad debt provision related to Professional Employer Organization (PEO) accounts.

• Net results for the third quarter of 2005 decreased $14 million as compared with the same period in 2004. The decrease was primarily due to the factors mentioned above, partially offset by more favorable 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 $50 million for the third quarter of 2005 as compared with the same period in 2004. Specialty Lines retention improved to 83% while average rates increased 2% during the third quarter of 2005.

• Net operating income increased $28 million for the third quarter of 2005 as compared with the same period in 2004. The primary drivers were an increase in net investment income and improvements in current accident year losses. Also contributing to improved operating results was a decrease in the bad debt provision for reinsurance receivables and increased earned premiums. These factors were partially offset by increased catastrophe impacts in 2005. Additionally, the 2004 results included favorable net prior year development.

• Net income for the third quarter of 2005 increased $47 million as compared with the same period in 2004, primarily due to the factors mentioned above and improved net realized investment results.

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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 decreased $13 million for the third quarter of 2005 as compared with the same period in 2004, partly due to the sale of the specialty medical business. Net earned premiums consist primarily of premiums from the group and individual long term care businesses.

• Net results for the third quarter of 2005 decreased $25 million as compared with the same period in 2004. The drivers included a $17 million after-tax provision for estimated indemnification liabilities related to the sold individual life business. There was also unfavorable reserve development of $14 million after-tax related to the Company’s past participation in an accident and health reinsurance program. These factors were partially offset by improved net investment income.

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 third quarter of 2005 increased $22 million as compared with the same period in 2004, primarily due to improved net realized investment results and unfavorable net prior year development recorded in 2004.

Net Investment Income

Pretax net investment income for the third quarter of 2005 increased $140 million over the same period of 2004. This increase was due primarily to improved investment income from the trading portfolio, limited partnerships and short term investments, which reflects the improved period over period returns. These results include improved income of approximately $62 million from the trading portfolio which was largely offset by a corresponding increase in the policyholders’ funds reserves supported by the trading portfolio.

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.

Page 7 of  8

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) 811-0667 or for international callers (913) 981-4901. 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 November 3, 2005. The replay can also be accessed by dialing (888) 203-1112 or for international callers (719) 457-0820 and using passcode 2914462. Financial supplement information related to the third quarter results is available on the investor relations pages of the CNA Website or by contacting Cathleen R. Marine at (312) 822-4159.

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.

# # #

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EX-99.2

EXHIBIT 99.2

CNA Financial Corporation

Supplemental Financial Information

September 30, 2005

CNA Financial Corporation
Table of Contents
September 30, 2005

	Page
Supplemental Financial Information	i-iii
Statements of Operations	1
Components of Net Income (Loss) 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 (Nine Months Ended)	9
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Nine 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
Impact of Catastrophes	15-16
Life & Group Non-Core Segment — GAAP Results of Operations (Nine Months Ended)	17
Asbestos Summary by Policyholder Category	18

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.
•	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 the 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 nine months ended September 30, 2004. As a result of the sale, income statement results for the nine months ended September 30, 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

In May of 2005, the Company filed an amendment to its 2004 Annual Report on Form 10-K to correct 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 and 2003, and for the years ended 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 provided no capital support to and had 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 subsequently 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 related 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 nine months ended September 30, 2004 of $1 million and $6 million, or 3.6% and 4.4%. The net income adjustment increased earnings per share for the three months and nine months ended September 30, 2004 by $0.01 per share and $0.02 per share.

ii

CNA Financial Corporation
Supplemental Financial Information

NON-GAAP FINANCIAL MEASURES

The results and ratios before the impact of catastrophes, presented on pages 15 and 16 of this financial supplement, are non-GAAP financial measures that are not a full financial presentation in accordance with generally accepted accounting principles (GAAP). To allow the reconciliation of these non-GAAP measures, however, these pages also provide the most comparable GAAP measures (i.e., the results and ratios after the impact of catastrophes).

iii

CNA FINANCIAL CORPORATION
Financial Supplement
Statements of Operations

							Fav /									Fav /
PERIOD ENDED SEPTEMBER 30	Three Months						(Unfav)			Nine Months						(Unfav)
(In millions)	2005			2004			% Change			2005			2004			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,873		$	1,947			(4	)%	$	5,684		$	6,221			(9	)%
Net investment income		500			360			39			1,345			1,216			11
Realized investment gains (losses), net of participating policyholders’ and minority interests		67			(62	)		N/A			74			(415	)		118
Other revenues		80			73			10			351			227			55
Total revenues		2,520			2,318			9			7,454			7,249			3
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,871			1,596			(17	)		4,886			4,854			(1	)
Amortization of deferred acquisition costs		416			374			(11	)		1,168			1,114			(5	)
Other operating expenses		241			393			39			766			1,100			30
Interest		29			28			(4	)		96			94			(2	)
Total claims, benefits and expenses		2,557			2,391			(7	)		6,916			7,162			3
Income (loss) before income tax and minority interest		(37	)		(73	)		49			538			87			N/A
Income tax (expense) benefit		51			52			(2	)		(53	)		74			(172	)
Minority interest		(11	)		(6	)		(83	)		(16	)		(19	)		16
Net income (loss)	$	3		$	(27	)		111	%	$	469		$	142			N/A	%

1

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

							Fav /								Fav /
PERIOD ENDED SEPTEMBER 30	Three Months						(Unfav)			Nine Months					(Unfav)
(In millions, except per share data)	2005			2004			% Change			2005		2004			% Change
COMPONENTS OF NET INCOME (LOSS)
Net operating income (loss)	$	(39	)	$	15			N/A	%	$	425	$	399			7	%
Net realized investment gains (losses), net of participating policyholders’ and minority interests		42			(42	)		200			44		(257	)		117
Net income (loss)	$	3		$	(27	)		111	%	$	469	$	142			N/A	%
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE
Basic and diluted earnings (loss) per share available to common stockholders (1)	$	(0.06	)	$	(0.16	)		63	%	$	1.63	$	0.37			N/A	%
Weighted average outstanding common stock and common stock equivalents		256.0			256.0						256.0		256.0

(1) The three and nine months ended September 30, 2005 per share results available to common stockholders are reduced by $17 million and $52 million, or $0.07 per share and $0.20 per share, of undeclared preferred stock dividends. The three and nine months ended September 30, 2004 per share results available to common stockholders are reduced by $16 million and $48 million, or $0.06 per share and $0.19 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)	September 30, 2005		December 31, 2004
Total assets	$	63,976	$	62,411
Insurance reserves		43,547		43,653
Debt		1,751		2,257
Total liabilities		54,299		52,958
Minority interest		283		275
Accumulated other comprehensive income		384		650
Total stockholders’ equity		9,394		9,178
Book value per common share (1)	$	33.07	$	32.43
Book value per common share excluding unrealized gain or loss on fixed maturity securities (1)	$	31.44	$	29.74
Outstanding shares of common stock (in millions of shares)		256.0		256.0

THREE MONTHS ENDED
SEPTEMBER 30
(In millions)	2005			2004
Net cash flows provided by operating activities	$	190		$	576
Net cash flows used by investing activities		(176	)		(607	)
Net cash flows provided (used) by financing activities		2			(1	)
Net cash flows	$	16		$	(32	)

NINE MONTHS ENDED
SEPTEMBER 30
(In millions)	2005			2004
Net cash flows provided by operating activities	$	1,034		$	1,259
Net cash flows used by investing activities		(540	)		(1,149	)
Net cash flows used by financing activities		(503	)		(178	)
Net cash flows	$	(9	)	$	(68	)

(1) Book value per common share as of September 30, 2005 and December 31, 2004 excludes $750 million of preferred stock (Series H) and $179 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 September 30, 2005
Gross	$	14,787	$	5,107	$	19,894
Ceded		4,742		1,554		6,296
Net		10,045		3,553		13,598
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 Non-		Corporate &
(In millions)	Core		Other Non-Core		Total Operations
As of September 30, 2005
Gross	$	3,496	$	8,045	$	31,435
Ceded		1,668		4,878		12,842
Net		1,828		3,167		18,593
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 SEPTEMBER 30	Three Months			Nine Months
(In millions)	Ended			Ended
Claim & claim adjustment expense reserves, beginning of period
Gross	$	30,798		$	31,523
Ceded		12,631			13,879
Net		18,167			17,644
Net incurred claim & claim adjustment expenses		1,801			4,642
Net claim & claim adjustment expense payments		(1,375	)		(3,693	)
Claim & claim adjustment expense reserves, end of period
Net		18,593			18,593
Ceded		12,842			12,842
Gross	$	31,435		$	31,435

5

CNA FINANCIAL CORPORATION
Financial Supplement
Investments by Segment Aggregation

	September 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	$	16,087	$	16,084	$	15,072	$	15,346
Fixed Maturities — Tax Exempt		7,472		7,508		7,680		7,800
Equities		217		328		232		351
Short-term		4,621		4,620		3,599		3,600
Limited Partnership Investments		1,236		1,236		1,195		1,195
Mortgage Loans & Other		32		32		34		26
Subtotal		29,665		29,808		27,812		28,318
Securities Lending Collateral		1,984		1,984		904		904
Total Investments		31,649		31,792		28,716		29,222
Life & Group Non-Core:
Fixed Maturities — Taxable		6,753		7,270		6,495		7,124
Fixed Maturities — Tax Exempt		1,473		1,567		1,019		1,057
Equities		206		221		88		105
Short-term		527		527		1,345		1,345
Limited Partnership Investments		382		382		354		354
Mortgage Loans & Other		2		2		23		10
Subtotal		9,343		9,969		9,324		9,995
Securities Lending Collateral		22		22		14		14
Total Investments		9,365		9,991		9,338		10,009
Total Investments	$	41,014	$	41,783	$	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
SEPTEMBER 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2005			2004			% Change			2005			2004			% Change			2005			2004			% Change
Gross written premiums	$	1,472		$	1,421			4	%	$	762		$	706			8	%	$	2,234		$	2,127			5	%
Net written premiums		1,047			1,046			—			649			599			8			1,696			1,645			3
Net earned premiums		1,080			1,183			(9	)		628			576			9			1,708			1,759			(3	)
Net investment income		186			125			49			74			61			21			260			186			40
Other revenues		26			32			(19	)		34			36			(6	)		60			68			(12	)
Total operating revenues		1,292			1,340			(4	)		736			673			9			2,028			2,013			1
Claims, benefits and expenses:
Net incurred claims and benefits		1,148			951			(21	)		366			361			(1	)		1,514			1,312			(15	)
Policyholders’ dividends		4			8			50			1			2			50			5			10			50
Amortization of deferred acquisition costs		281			247			(14	)		128			112			(14	)		409			359			(14	)
Other insurance related expenses		76			239			68			45			46			2			121			285			58
Other operating expenses		23			25			8			28			29			3			51			54			6
Total claims, benefits and expenses		1,532			1,470			(4	)		568			550			(3	)		2,100			2,020			(4	)
Operating income (loss) before income tax and minority interest		(240	)		(130	)		(85	)		168			123			37			(72	)		(7	)		N/A
Income tax (expense) benefit on operating income (loss)		100			58			72			(53	)		(39	)		(36	)		47			19			147
Minority interest		(4	)		(2	)		(100	)		(7	)		(4	)		(75	)		(11	)		(6	)		(83	)
Net operating income (loss)		(144	)		(74	)		(95	)		108			80			35			(36	)		6			N/A
Realized investment gains (losses), net of participating policyholders’ and minority interests		51			(33	)		N/A			16			(13	)		N/A			67			(46	)		N/A
Income tax (expense) benefit on realized investment gains (losses)		(18	)		10			N/A			(5	)		5			(200	)		(23	)		15			N/A
Net income (loss)	$	(111	)	$	(97	)		(14	)%	$	119		$	72			65	%	$	8		$	(25	)		132	%
Financial Ratios
Loss & LAE		106.3	%		80.4	%					58.4	%		62.8	%					88.7	%		74.6	%
Acquisition expense		20.4			27.9						20.9			20.1						20.6			25.4
Underwriting expense		12.6			13.2						6.4			7.1						10.4			11.2
Dividends		0.3			0.7						0.2			0.4						0.2			0.6
Expense ratio, including dividends		33.3			41.8						27.5			27.6						31.2			37.2
Combined ratio		139.6	%		122.2	%					85.9	%		90.4	%					119.9	%		111.8	%

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
SEPTEMBER 30													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2005			2004			2005			2004			% Change			2005			2004			% Change			2005			2004			% Change
Net earned premiums	$	1,708		$	1,759		$	169		$	182			(7	)%	$	(4	)	$	6			(167	)%	$	1,873		$	1,947			(4	)%
Net investment income		260			186			179			109			64			61			65			(6	)		500			360			39
Other revenues		60			68			20			12			67			—			(7	)		N/A			80			73			10
Total operating revenues		2,028			2,013			368			303			21			57			64			(11	)		2,453			2,380			3
Claims, benefits and expenses:
Net incurred claims and benefits		1,514			1,312			342			245			(40	)		12			34			65			1,868			1,591			(17	)
Policyholders’ dividends		5			10			(1	)		(4	)		(75	)		(1	)		(1	)		—			3			5			40
Amortization of deferred acquisition costs		409			359			5			11			55			2			4			50			416			374			(11	)
Other insurance related expenses		121			285			69			61			(13	)		(7	)		(12	)		(42	)		183			334			45
Other operating expenses		51			54			13			17			24			23			16			(44	)		87			87			—
Total claims, benefits and expenses		2,100			2,020			428			330			(30	)		29			41			29			2,557			2,391			(7	)
Operating income (loss) before income tax and minority interest		(72	)		(7	)		(60	)		(27	)		(122	)		28			23			22			(104	)		(11	)		N/A
Income tax (expense) benefit on operating income (loss)		47			19			25			14			79			4			(1	)		N/A			76			32			138
Minority interest		(11	)		(6	)		—			—			N/A			—			—			N/A			(11	)		(6	)		(83	)
Net operating income (loss)		(36	)		6			(35	)		(13	)		(169	)		32			22			45			(39	)		15			N/A
Realized investment gains (losses), net of participating policyholders’ and minority interests		67			(46	)		(2	)		2			(200	)		2			(18	)		111			67			(62	)		N/A
Income tax (expense) benefit on realized investment gains (losses)		(23	)		15			1			—			N/A			(3	)		5			(160	)		(25	)		20			N/A
Net income (loss)	$	8		$	(25	)	$	(36	)	$	(11	)		N/A	%	$	31		$	9			N/A	%	$	3		$	(27	)		111	%

	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
Other Financial Data													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
Property & Casualty Company Information	2005			2004			2005			2004			% Change			2005			2004			% Change			2005			2004			% Change
Gross written premiums	$	2,234		$	2,127		$	218		$	225			(3	)%	$	302		$	478			(37	)%	$	2,754		$	2,830			(3	)%
Net written premiums		1,696			1,645			164			133			23			(2	)		1			N/A			1,858			1,779			4
Net earned premiums		1,708			1,759			167			138			21			(3	)		6			(150	)		1,872			1,903			(2	)
Financial Ratios
Loss & LAE		88.7	%		74.6	%		147.2	%		136.7	%					N/M	%		N/M	%					94.7	%		80.6	%
Acquisition expense		20.6			25.4			14.6			12.4						N/M			N/M						20.1			24.4
Underwriting expense		10.4			11.2			20.6			22.0						N/M			N/M						11.1			12.0
Dividends		0.2			0.6			—			—						N/M			N/M						0.2			0.5
Expense ratio, including dividends		31.2			37.2			35.2			34.4						N/M			N/M						31.4			36.9
Combined ratio		119.9	%		111.8	%		182.4	%		171.1	%					N/M	%		N/M	%					126.1	%		117.5	%

N/M = Not Meaningful

8

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

NINE MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
SEPTEMBER 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2005			2004			% Change			2005			2004			% Change			2005			2004			% Change
Gross written premiums	$	4,531		$	4,494			1	%	$	2,219		$	2,092			6	%	$	6,750		$	6,586			2	%
Net written premiums		3,352			3,520			(5	)		1,838			1,772			4			5,190			5,292			(2	)
Net earned premiums		3,333			3,756			(11	)		1,831			1,672			10			5,164			5,428			(5	)
Net investment income		540			382			41			197			182			8			737			564			31
Other revenues		74			102			(27	)		94			93			1			168			195			(14	)
Total operating revenues		3,947			4,240			(7	)		2,122			1,947			9			6,069			6,187			(2	)
Claims, benefits and expenses:
Net incurred claims and benefits		2,750			2,701			(2	)		1,158			1,059			(9	)		3,908			3,760			(4	)
Policyholders’ dividends		16			2			N/A			3			5			40			19			7			(171	)
Amortization of deferred acquisition costs		757			729			(4	)		390			328			(19	)		1,147			1,057			(9	)
Other insurance related expenses		318			579			45			93			115			19			411			694			41
Other operating expenses		82			84			2			81			84			4			163			168			3
Total claims, benefits and expenses		3,923			4,095			4			1,725			1,591			(8	)		5,648			5,686			1
Operating income before income tax and minority interest		24			145			(83	)		397			356			12			421			501			(16	)
Income tax (expense) benefit on operating income		41			(1	)		N/A			(121	)		(107	)		(13	)		(80	)		(108	)		26
Minority interest		(8	)		(6	)		(33	)		(8	)		(13	)		38			(16	)		(19	)		16
Net operating income		57			138			(59	)		268			236			14			325			374			(13	)
Realized investment gains, net of participating policyholders’ and minority interests		71			101			(30	)		25			37			(32	)		96			138			(30	)
Income tax expense on realized investment gains		(29	)		(36	)		19			(6	)		(14	)		57			(35	)		(50	)		30
Net income	$	99		$	203			(51	)%	$	287		$	259			11	%	$	386		$	462			(16	)%
Financial Ratios
Loss & LAE		82.5	%		71.9	%					63.3	%		63.4	%					75.7	%		69.3	%
Acquisition expense		20.0			22.9						19.7			19.0						19.9			21.7
Underwriting expense		12.2			11.9						6.6			7.4						10.2			10.6
Dividends		0.5			0.1						0.2			0.3						0.4			0.1
Expense ratio, including dividends		32.7			34.9						26.5			26.7						30.5			32.4
Combined ratio		115.2	%		106.8	%					89.8	%		90.1	%					106.2	%		101.7	%

9

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)	2005			2004			2005			2004			% Change			2005			2004			% Change			2005			2004			% Change
Net earned premiums	$	5,164		$	5,428		$	539		$	710			(24	)%	$	(19	)	$	83			(123	)%	$	5,684		$	6,221			(9	)%
Net investment income		737			564			431			457			(6	)		177			195			(9	)		1,345			1,216			11
Other revenues		168			195			78			72			8			105			(40	)		N/A			351			227			55
Total operating revenues		6,069			6,187			1,048			1,239			(15	)		263			238			11			7,380			7,664			(4	)
Claims, benefits and expenses:
Net incurred claims and benefits		3,908			3,760			860			981			12			100			107			7			4,868			4,848			—
Policyholders’ dividends		19			7			(1	)		(1	)		—			—			—			N/A			18			6			(200	)
Amortization of deferred acquisition costs		1,147			1,057			18			30			40			3			27			89			1,168			1,114			(5	)
Other insurance related expenses		411			694			194			218			11			(1	)		15			107			604			927			35
Other operating expenses		163			168			43			58			26			52			41			(27	)		258			267			3
Total claims, benefits and expenses		5,648			5,686			1,114			1,286			13			154			190			19			6,916			7,162			3
Operating income (loss) before income tax and minority interest		421			501			(66	)		(47	)		(40	)		109			48			127			464			502			(8	)
Income tax (expense) benefit on operating income (loss)		(80	)		(108	)		37			27			37			20			(3	)		N/A			(23	)		(84	)		73
Minority interest		(16	)		(19	)		—			—			N/A			—			—			N/A			(16	)		(19	)		16
Net operating income (loss)		325			374			(29	)		(20	)		(45	)		129			45			187			425			399			7
Realized investment gains (losses), net of participating policyholders’ and minority interests		96			138			(8	)		(616	)		99			(14	)		63			(122	)		74			(415	)		118
Income tax (expense) benefit on realized investment gains (losses)		(35	)		(50	)		3			231			(99	)		2			(23	)		109			(30	)		158			(119	)
Net income (loss)	$	386		$	462		$	(34	)	$	(405	)		92	%	$	117		$	85			38	%	$	469		$	142			N/A	%

Other Financial Data	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
Property & Casualty Company													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
Information	2005			2004			2005			2004			% Change			2005			2004			% Change			2005			2004			% Change
Gross written premiums	$	6,750		$	6,586		$	702		$	837			(16	)%	$	854		$	1,367			(38	)%	$	8,306		$	8,790			(6	)%
Net written premiums		5,190			5,292			535			472			13			(29	)		(19	)		(53	)		5,696			5,745			(1	)
Net earned premiums		5,164			5,428			531			454			17			(18	)		100			(118	)		5,677			5,982			(5	)
Financial Ratios
Loss & LAE		75.7	%		69.3	%		131.7	%		136.8	%					N/M	%		N/M	%					82.9	%		75.4	%
Acquisition expense		19.9			21.7			18.5			9.0						N/M			N/M						19.7			20.8
Underwriting expense		10.2			10.6			18.5			16.6						N/M			N/M						11.4			11.1
Dividends		0.4			0.1			—			—						N/M			N/M						0.3			0.1
Expense ratio, including dividends		30.5			32.4			37.0			25.6						N/M			N/M						31.4			32.0
Combined ratio		106.2	%		101.7	%		168.7	%		162.4	%					N/M	%		N/M	%					114.3	%		107.4	%

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 &
(In millions)	Standard Lines		Specialty Lines		P&C Operations		Other Non-Core		Total
Three months ended September 30, 2005 (1)	$	418	$	19	$	437	$	—	$	437
Nine months ended September 30, 2005 (1)		424		19		443		—		443
Three months ended September 30, 2004 (2)	$	245	$	10	$	255	$	3	$	258
Nine months ended September 30, 2004 (2)		255		13		268		3		271

CATASTROPHE LOSSES (AFTER-TAX)							Corporate &
(In millions)	Standard Lines		Specialty Lines		P&C Operations		Other Non-Core		Total
Three months ended September 30, 2005 (1)	$	272	$	12	$	284	$	—	$	284
Nine months ended September 30, 2005 (1)		276		12		288		—		288
Three months ended September 30, 2004 (2)	$	159	$	7	$	166	$	2	$	168
Nine months ended September 30, 2004 (2)		166		8		174		2		176

(1)

For the three and nine months ended September 30, 2005, the above amounts exclude $21 million pretax ($14 million after-tax) of reinstatement premium and $8 million pretax ($6 million after-tax) of insurance bad debt related to the third quarter 2005 hurricanes. Additionally, the above amounts also exclude a $15 million pretax ($10 million after-tax) reduction of estimated hurricane-related assessments related to the third quarter 2004 hurricanes. For the three and nine months ended September 30, 2005, the above amounts include losses of $434 million pretax ($282 million after-tax) related to Hurricanes Dennis, Katrina, Ophelia and Rita.

(2)

For the three and nine months ended September 30, 2004, the above amounts exclude $5 million pretax ($3 million after-tax) of reinstatement premium and $15 million pretax ($10 million after-tax) of estimated assessments related to the third quarter 2004 hurricanes. For the three and nine months ended September 30, 2004, the above amounts include losses of $248 million pretax ($161 million after-tax) related to Hurricanes Charley, Frances, Ivan and Jeanne.

11

CNA FINANCIAL CORPORATION
Financial Supplement
Analysis of Pretax Net Investment Income

(In millions)	Standard Lines
	1Q04			2Q04			3Q04			4Q04			YTD 2004			1Q05			2Q05			3Q05			YTD 2005
Limited partnership income	$	37		$	13		$	12		$	39		$	101		$	42		$	22		$	38		$	102
Interest on funds withheld and other deposits		(38	)		(43	)		(44	)		(70	)		(195	)		(18	)		(34	)		(34	)		(86	)
Income from trading securities		—			—			—			1			1			1			—			1			2
Other investment income		139			149			157			144			589			158			183			181			522
Net investment income	$	138		$	119		$	125		$	114		$	496		$	183		$	171		$	186		$	540

	Specialty Lines
	1Q04			2Q04			3Q04			4Q04			YTD 2004			1Q05			2Q05			3Q05			YTD 2005
Limited partnership income	$	13		$	5		$	4		$	14		$	36		$	13		$	7		$	12		$	32
Interest on funds withheld and other deposits		(2	)		(2	)		(3	)		(7	)		(14	)		(12	)		(1	)		(2	)		(15	)
Income from trading securities		—			—			—			—			—			—			—			—			—
Other investment income		51			56			60			57			224			55			61			64			180
Net investment income	$	62		$	59		$	61		$	64		$	246		$	56		$	67		$	74		$	197

	P&C Operations
	1Q04			2Q04			3Q04			4Q04			YTD 2004			1Q05			2Q05			3Q05			YTD 2005
Limited partnership income	$	50		$	18		$	16		$	53		$	137		$	55		$	29		$	50		$	134
Interest on funds withheld and other deposits		(40	)		(45	)		(47	)		(77	)		(209	)		(30	)		(35	)		(36	)		(101	)
Income from trading securities		—			—			—			1			1			1			—			1			2
Other investment income		190			205			217			201			813			213			244			245			702
Net investment income	$	200		$	178		$	186		$	178		$	742		$	239		$	238		$	260		$	737

	Life & Group Non-Core
	1Q04		2Q04		3Q04			4Q04		YTD 2004		1Q05			2Q05		3Q05		YTD 2005
Limited partnership income	$	9	$	6	$	3		$	11	$	29	$	9		$	1	$	8	$	18
Interest on funds withheld and other deposits		—		—		—			—		—		—			—		—		—
Income from trading securities		20		14		(21	)		96		109		(31	)		14		40		23
Other investment income		177		122		127			128		554		128			131		131		390
Net investment income	$	206	$	142	$	109		$	235	$	692	$	106		$	146	$	179	$	431

	Corporate & Other Non-Core
	1Q04			2Q04			3Q04			4Q04			YTD 2004			1Q05			2Q05			3Q05			YTD 2005
Limited partnership income	$	16		$	6		$	7		$	17		$	46		$	15		$	8		$	14		$	37
Interest on funds withheld and other deposits		(8	)		(10	)		(7	)		(27	)		(52	)		(9	)		(15	)		(14	)		(38	)
Income from trading securities		—			—			—			—			—			—			—			—			—
Other investment income		61			65			65			61			252			55			62			61			178
Net investment income	$	69		$	61		$	65		$	51		$	246		$	61		$	55		$	61		$	177

	Total Operations
	1Q04			2Q04			3Q04			4Q04			YTD 2004			1Q05			2Q05			3Q05			YTD 2005
Limited partnership income	$	75		$	30		$	26		$	81		$	212		$	79		$	38		$	72		$	189
Interest on funds withheld and other deposits		(48	)		(55	)		(54	)		(104	)		(261	)		(39	)		(50	)		(50	)		(139	)
Income from trading securities		20			14			(21	)		97			110			(30	)		14			41			25
Other investment income		428			392			409			390			1,619			396			437			437			1,270
Net investment income	$	475		$	381		$	360		$	464		$	1,680		$	406		$	439		$	500		$	1,345

12

CNA FINANCIAL CORPORATION
Financial Supplement
Statutory Data — Preliminary

PERIOD ENDED SEPTEMBER 30	Three Months									Nine Months
Income Statement	(Preliminary)						Fav / (Unfav)			(Preliminary)						Fav / (Unfav)
(In millions)	2005			2004			% Change			2005			2004			% Change
Property & Casualty Companies
Gross written premiums	$	2,480		$	2,724			(9	)%	$	7,465		$	8,512			(12	)%
Net written premiums		1,765			1,753			1			5,376			5,541			(3	)
Net earned premiums		1,602			1,657			(3	)		4,908			5,216			(6	)
Claim and claim adjustment expenses		1,576			1,346			(17	)		4,137			4,071			(2	)
Acquisition expenses		299			297			(1	)		926			968			4
Underwriting expenses		210			243			14			711			617			(15	)
Policyholders’ dividends		16			12			(33	)		28			34			18
Underwriting loss		(499	)		(241	)		(107	)		(894	)		(474	)		(89	)
Net investment income (1)		386			333			16			1,635			977			67
Other revenues/expenses		(70	)		(191	)		63			(25	)		(323	)		92
Income tax (expense) benefit		161			2			N/A			83			(190	)		144
Net realized gains (losses)		3			(26	)		112			50			290			(83	)
Net income (loss)	$	(19	)	$	(123	)		85	%	$	849		$	280			N/A	%
Financial Ratios
Loss and LAE		98.4	%		81.3	%					84.3	%		78.1	%
Acquisition expense		16.9			17.0						17.2			17.5
Underwriting expense		11.8			13.8						14.5			11.0
Policyholders’ dividends		1.0			0.7						0.6			0.7
Expense ratio		29.7			31.5						32.3			29.2
Combined ratio		128.1	%		112.8	%					116.6	%		107.3	%
Life Companies
Earned premium	$	1		$	43					$	7		$	278

SUPPLEMENTAL STATUTORY DATA

	(Preliminary)
(In millions)	September 30, 2005		December 31, 2004
Property & Casualty Companies
Statutory surplus (2)	$	7,332	$	6,998
Life Companies
Statutory surplus	$	722	$	1,177

(1)	Includes $500 million of dividends from CCC’s life subsidiary, Continental Assurance Company, for the nine months ended September 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			2004 FY			2004 FY
	Evaluated at			Evaluated at			Evaluated at
	09/30/05			12/31/04			09/30/05
Gross Accident Year		76.7	%		67.2	%		63.4	%
Impact of Reinsurance		1.3			2.0			1.5
Net Accident Year		78.0			69.2			64.9	%
Impact of Corporate Covers		1.0			(0.2	)
Impact of Development & Change in Allowance for Uncollectible Reinsurance		3.5			1.7
Net Calendar Year		82.5	%		70.7	%

	Specialty Lines
	2005 YTD			2004 FY			2004 FY
	Evaluated at			Evaluated at			Evaluated at
	09/30/05			12/31/04			09/30/05
Gross Accident Year		61.5	%		64.1	%		56.7	%
Impact of Reinsurance		(0.3	)		(0.6	)		(0.2	)
Net Accident Year		61.2			63.5			56.5	%
Impact of Corporate Covers		(0.4	)		0.9
Impact of Development & Change in Allowance for Uncollectible Reinsurance		2.5			(1.1	)
Net Calendar Year		63.3	%		63.3	%

	P&C Operations
	2005 YTD			2004 FY			2004 FY
	Evaluated at			Evaluated at			Evaluated at
	09/30/05			12/31/04			09/30/05
Gross Accident Year		71.7	%		66.3	%		61.4	%
Impact of Reinsurance		0.2			1.1			0.9
Net Accident Year		71.9			67.4			62.3	%
Impact of Corporate Covers		0.5			0.2
Impact of Development & Change in Allowance for Uncollectible Reinsurance		3.3			0.8
Net Calendar Year		75.7	%		68.4	%

14

CNA FINANCIAL CORPORATION
Financial Supplement
Impact of Catastrophes

THREE MONTHS ENDED
SEPTEMBER 30, 2005				Standard Lines									Specialty Lines									P&C Operations
	2005 Results									2005 Results									2005 Results
	Before Impact of			Impact of						Before Impact of			Impact of						Before Impact of			Impact of
(In millions)	Catastrophes			Catastrophes			2005 Results			Catastrophes			Catastrophes			2005 Results			Catastrophes			Catastrophes			2005 Results
Net earned premiums	$	1,101		$	(21	)	$	1,080		$	628		$	—		$	628		$	1,729		$	(21	)	$	1,708
Net investment income		186			—			186			74			—			74			260			—			260
Other revenues		26			—			26			34			—			34			60			—			60
Total operating revenues		1,313			(21	)		1,292			736			—			736			2,049			(21	)		2,028
Claims, benefits and expenses:
Net incurred claims and benefits		730			418			1,148			347			19			366			1,077			437			1,514
Policyholders’ dividends		4			—			4			1			—			1			5			—			5
Amortization of deferred acquisition costs		281			—			281			128			—			128			409			—			409
Other insurance related expenses		85			(9	)		76			43			2			45			128			(7	)		121
Other operating expenses		23			—			23			28			—			28			51			—			51
Total claims, benefits and expenses		1,123			409			1,532			547			21			568			1,670			430			2,100
Operating income (loss) before income tax and minority interest		190			(430	)		(240	)		189			(21	)		168			379			(451	)		(72	)
Income tax (expense) benefit on operating income (loss)		(50	)		150			100			(60	)		7			(53	)		(110	)		157			47
Minority interest		(4	)		—			(4	)		(7	)		—			(7	)		(11	)		—			(11	)
Net operating income (loss)		136			(280	)		(144	)		122			(14	)		108			258			(294	)		(36	)
Realized investment gains, net of participating policyholders’ and minority interests		51			—			51			16			—			16			67			—			67
Income tax expense on realized investment gains		(18	)		—			(18	)		(5	)		—			(5	)		(23	)		—			(23	)
Net income (loss)	$	169		$	(280	)	$	(111	)	$	133		$	(14	)	$	119		$	302		$	(294	)	$	8
Financial Ratios
Loss & LAE		66.3	%					106.3	%		55.3	%					58.4	%		62.3	%					88.7	%
Acquisition expense		20.8						20.4			20.6						20.9			20.7						20.6
Underwriting expense		12.4						12.6			6.4						6.4			10.3						10.4
Dividends		0.3						0.3			0.2						0.2			0.2						0.2
Expense ratio, including dividends		33.5						33.3			27.2						27.5			31.2						31.2
Combined ratio		99.8	%					139.6	%		82.5	%					85.9	%		93.5	%					119.9	%

THREE MONTHS ENDED
SEPTEMBER 30, 2004				Standard Lines									Specialty Lines									P&C Operations
	2004 Results									2004 Results									2004 Results
	Before Impact of			Impact of						Before Impact of			Impact of						Before Impact of			Impact of
(In millions)	Catastrophes			Catastrophes			2004 Results			Catastrophes			Catastrophes			2004 Results			Catastrophes			Catastrophes			2004 Results
Net earned premiums	$	1,188		$	(5	)	$	1,183		$	576		$	—		$	576		$	1,764		$	(5	)	$	1,759
Net investment income		125			—			125			61			—			61			186			—			186
Other revenues		32			—			32			36			—			36			68			—			68
Total operating revenues		1,345			(5	)		1,340			673			—			673			2,018			(5	)		2,013
Claims, benefits and expenses:
Net incurred claims and benefits		706			245			951			351			10			361			1,057			255			1,312
Policyholders’ dividends		8			—			8			2			—			2			10			—			10
Amortization of deferred acquisition costs		247			—			247			112			—			112			359			—			359
Other insurance related expenses		225			14			239			45			1			46			270			15			285
Other operating expenses		25			—			25			29			—			29			54			—			54
Total claims, benefits and expenses		1,211			259			1,470			539			11			550			1,750			270			2,020
Operating income (loss) before income tax and minority interest		134			(264	)		(130	)		134			(11	)		123			268			(275	)		(7	)
Income tax (expense) benefit on operating income (loss)		(34	)		92			58			(43	)		4			(39	)		(77	)		96			19
Minority interest		(2	)		—			(2	)		(4	)		—			(4	)		(6	)		—			(6	)
Net operating income (loss)		98			(172	)		(74	)		87			(7	)		80			185			(179	)		6
Realized investment losses, net of participating policyholders’ and minority interests		(33	)		—			(33	)		(13	)		—			(13	)		(46	)		—			(46	)
Income tax benefit on realized investment losses		10			—			10			5			—			5			15			—			15
Net income (loss)	$	75		$	(172	)	$	(97	)	$	79		$	(7	)	$	72		$	154		$	(179	)	$	(25	)
Financial Ratios
Loss & LAE		59.4	%					80.4	%		61.1	%					62.8	%		59.9	%					74.6	%
Acquisition expense		26.6						27.9			19.9						20.1			24.4						25.4
Underwriting expense		13.2						13.2			7.1						7.1			11.2						11.2
Dividends		0.7						0.7			0.4						0.4			0.6						0.6
Expense ratio, including dividends		40.5						41.8			27.4						27.6			36.2						37.2
Combined ratio		99.9	%					122.2	%		88.5	%					90.4	%		96.1	%					111.8	%

15

CNA FINANCIAL CORPORATION
Financial Supplement
Impact of Catastrophes

NINE MONTHS ENDED
SEPTEMBER 30, 2005				Standard Lines									Specialty Lines									P&C Operations
	2005 Results									2005 Results									2005 Results
	Before Impact of			Impact of						Before Impact of			Impact of						Before Impact of			Impact of
(In millions)	Catastrophes			Catastrophes			2005 Results			Catastrophes			Catastrophes			2005 Results			Catastrophes			Catastrophes			2005 Results
Net earned premiums	$	3,354		$	(21	)	$	3,333		$	1,831		$	—		$	1,831		$	5,185		$	(21	)	$	5,164
Net investment income		540			—			540			197			—			197			737			—			737
Other revenues		74			—			74			94			—			94			168			—			168
Total operating revenues		3,968			(21	)		3,947			2,122			—			2,122			6,090			(21	)		6,069
Claims, benefits and expenses:
Net incurred claims and benefits		2,326			424			2,750			1,139			19			1,158			3,465			443			3,908
Policyholders’ dividends		16			—			16			3			—			3			19			—			19
Amortization of deferred acquisition costs		757			—			757			390			—			390			1,147			—			1,147
Other insurance related expenses		327			(9	)		318			91			2			93			418			(7	)		411
Other operating expenses		82			—			82			81			—			81			163			—			163
Total claims, benefits and expenses		3,508			415			3,923			1,704			21			1,725			5,212			436			5,648
Operating income (loss) before income tax and minority interest		460			(436	)		24			418			(21	)		397			878			(457	)		421
Income tax (expense) benefit on operating income (loss)		(112	)		153			41			(128	)		7			(121	)		(240	)		160			(80	)
Minority interest		(8	)		—			(8	)		(8	)		—			(8	)		(16	)		—			(16	)
Net operating income (loss)		340			(283	)		57			282			(14	)		268			622			(297	)		325
Realized investment gains, net of participating policyholders’ and minority interests		71			—			71			25			—			25			96			—			96
Income tax expense on realized investment gains		(29	)		—			(29	)		(6	)		—			(6	)		(35	)		—			(35	)
Net income (loss)	$	382		$	(283	)	$	99		$	301		$	(14	)	$	287		$	683		$	(297	)	$	386
Financial Ratios
Loss & LAE		69.4	%					82.5	%		62.2	%					63.3	%		66.8	%					75.7	%
Acquisition expense		20.2						20.0			19.6						19.7			20.0						19.9
Underwriting expense		12.0						12.2			6.6						6.6			10.2						10.2
Dividends		0.5						0.5			0.2						0.2			0.4						0.4
Expense ratio, including dividends		32.7						32.7			26.4						26.5			30.6						30.5
Combined ratio		102.1	%					115.2	%		88.6	%					89.8	%		97.4	%					106.2	%

NINE MONTHS ENDED
SEPTEMBER 30, 2004				Standard Lines									Specialty Lines									P&C Operations
	2004 Results									2004 Results									2004 Results
	Before Impact of			Impact of						Before Impact of			Impact of						Before Impact of			Impact of
(In millions)	Catastrophes			Catastrophes			2004 Results			Catastrophes			Catastrophes			2004 Results			Catastrophes			Catastrophes			2004 Results
Net earned premiums	$	3,761		$	(5	)	$	3,756		$	1,672		$	—		$	1,672		$	5,433		$	(5	)	$	5,428
Net investment income		382			—			382			182			—			182			564			—			564
Other revenues		102			—			102			93			—			93			195			—			195
Total operating revenues		4,245			(5	)		4,240			1,947			—			1,947			6,192			(5	)		6,187
Claims, benefits and expenses:
Net incurred claims and benefits		2,446			255			2,701			1,046			13			1,059			3,492			268			3,760
Policyholders’ dividends		2			—			2			5			—			5			7			—			7
Amortization of deferred acquisition costs		729			—			729			328			—			328			1,057			—			1,057
Other insurance related expenses		565			14			579			114			1			115			679			15			694
Other operating expenses		84			—			84			84			—			84			168			—			168
Total claims, benefits and expenses		3,826			269			4,095			1,577			14			1,591			5,403			283			5,686
Operating income (loss) before income tax and minority interest		419			(274	)		145			370			(14	)		356			789			(288	)		501
Income tax (expense) benefit on operating income (loss)		(97	)		96			(1	)		(112	)		5			(107	)		(209	)		101			(108	)
Minority interest		(6	)		—			(6	)		(13	)		—			(13	)		(19	)		—			(19	)
Net operating income (loss)		316			(178	)		138			245			(9	)		236			561			(187	)		374
Realized investment gains, net of participating policyholders’ and minority interests		101			—			101			37			—			37			138			—			138
Income tax expense on realized investment gains		(36	)		—			(36	)		(14	)		—			(14	)		(50	)		—			(50	)
Net income (loss)	$	381		$	(178	)	$	203		$	268		$	(9	)	$	259		$	649		$	(187	)	$	462
Financial Ratios
Loss & LAE		65.0	%					71.9	%		62.6	%					63.4	%		64.3	%					69.3	%
Acquisition expense		22.5						22.9			19.0						19.0			21.4						21.7
Underwriting expense		11.9						11.9			7.4						7.4			10.6						10.6
Dividends		0.1						0.1			0.3						0.3			0.1						0.1
Expense ratio, including dividends		34.5						34.9			26.7						26.7			32.1						32.4
Combined ratio		99.5	%					106.8	%		89.3	%					90.1	%		96.4	%					101.7	%

16

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

NINE MONTHS ENDED
SEPTEMBER 30, 2005	Life & Group Non-Core
	excluding businesses			Life & Group Non-Core			Total Life & Group Non
(In millions)	sold (1)			businesses sold (2)			Core as reported
Net earned premiums	$	534		$	5		$	539
Net investment income		425			6			431
Other revenues		49			29			78
Total operating revenues		1,008			40			1,048
Claims, benefits and expenses:
Net incurred claims and benefits		831			29			860
Policyholders’ dividends		(5	)		4			(1	)
Amortization of deferred acquisition costs		17			1			18
Other insurance related expenses		104			90			194
Other operating expenses		43			—			43
Total claims, benefits and expenses		990			124			1,114
Operating income (loss) before income tax		18			(84	)		(66	)
Income tax benefit on operating income (loss)		8			29			37
Net operating income (loss)		26			(55	)		(29	)
Realized investment losses, net of participating policyholders’ interests		(8	)		—			(8	)
Income tax benefit on realized investment losses		3			—			3
Net income (loss)	$	21		$	(55	)	$	(34	)

NINE MONTHS ENDED
SEPTEMBER 30, 2004	Life & Group Non-Core
	excluding businesses			Life & Group Non-Core			Total Life & Group Non
(In millions)	sold (1)			businesses sold (2) (3)			Core as reported
Net earned premiums	$	477		$	233		$	710
Net investment income		404			53			457
Other revenues		42			30			72
Total operating revenues		923			316			1,239
Claims, benefits and expenses:
Net incurred claims and benefits		798			183			981
Policyholders’ dividends		(4	)		3			(1	)
Amortization of deferred acquisition costs		18			12			30
Other insurance related expenses		98			120			218
Other operating expenses		40			18			58
Total claims, benefits and expenses		950			336			1,286
Operating loss before income tax		(27	)		(20	)		(47	)
Income tax benefit on operating income loss		25			2			27
Net operating loss		(2	)		(18	)		(20	)
Realized investment gains (losses), net of participating policyholders’ interests		2			(618	)		(616	)
Income tax benefit on realized investment gains (losses)		—			231			231
Net loss	$	—		$	(405	)	$	(405	)

(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 nine months ended September 30, 2004, net realized investment losses for Life & Group Non-Core businesses sold include a pretax impairment loss of $613 million ($384 million after-tax), related to the individual life business and CNA Trust.

17

CNA FINANCIAL CORPORATION
Financial Supplement
Asbestos Summary by Policyholder Category

SEPTEMBER 30, 2005
			Net Paid		Net Asbestos		Percent of
	Number of		Losses in 2005		Reserves		Asbestos Net
	Policyholders		(In millions)		(In millions)		Reserves
Policyholders with Settlement Agreements
Structured Settlements		13	$	29	$	158		10	%
Wellington		4		2		16		1
Coverage in Place		34		7		70		5
Fibreboard		1		—		54		3
Total with Settlement Agreements		52		38		298		19
Other Policyholders with Active Accounts
Large Asbestos Accounts		201		52		339		22
Small Asbestos Accounts		1,082		21		113		7
Total Other Policyholders		1,283		73		452		29
Assumed Reinsurance & Pools				4		145		9
Unassigned IBNR (1)						684		43
Total		1,335	$	115	$	1,579		100	%

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

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