8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

Date of Report (Date of earliest event reported) August 1, 2006

CNA FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-5823	36-6169860
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)
333 S. Wabash, Chicago, Illinois		60604
(Address of principal executive offices)		(Zip Code)

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

CNA Center, Chicago, Illinois, 60685

(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 August 1, 2006, the Registrant issued a press release and posted a financial supplement providing information on its results of operations for the second quarter 2006. The press release is furnished as Exhibit 99.1 and the financial supplement is furnished as Exhibit 99.2 to this Form 8-K.

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

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits:

Exhibit No.	Description
99.1	CNA Financial Corporation press release, issued August 1, 2006, providing information on the second quarter 2006 results of operations.
99.2	CNA Financial Corporation financial supplement, posted August 1, 2006, providing supplemental financial information on the second quarter 2006.

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SIGNATURES

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

CNA FINANCIAL CORPORATION

(Registrant)

/s/ D. Craig Mense

(Signature)

By: D. Craig Mense

Its: Executive Vice President and Chief Financial Officer

Dated: August 1, 2006

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EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

CONTACT:
MEDIA:	ANALYSTS:
Charles M. Boesel, 312/822-2592	John J. Hanrahan, 312/822-6586
Katrina W. Parker, 312/822-5167	David C. Adams, 312/822-2183

CNA FINANCIAL ANNOUNCES
2nd QUARTER 2006 RESULTS

CHICAGO, August 1, 2006 — CNA Financial Corporation (NYSE: CNA) today announced second quarter of 2006 results, which included the following items:

• Net operating income from continuing operations for the second quarter of 2006 of $305 million as compared with $272 million for the same period in 2005. The second quarter of 2005 included a $115 million benefit related to a federal income tax settlement and a $36 million loss resulting from a reinsurance commutation.

• Net income for the second quarter of 2006 of $239 million as compared with $290 million for the same period in 2005. The second quarter of 2006 included net realized investment losses of $64 million as compared to net realized investment gains of $16 million for the same period in 2005.

• Property & Casualty Operations combined ratio of 95.2%.

	Results for the Three Months					Results for the Six Months
	Ended June 30					Ended June 30
($ millions, except per share data)	2006			2005		2006			2005
				(Restated)					(Restated)
Net operating income (a)	$	305		$	272	$	539		$	464
Net realized investment (losses) gains		(64	)		16		(63	)		2
Net income from continuing operations		241			288		476			466
Net (loss) income from discontinued operations		(2	)		2		(8	)		9
Net income	$	239		$	290	$	468		$	475

(a) Management utilizes the net operating income financial measure to monitor the Company’s operations. Please refer to Note N of the Consolidated Financial Statements within the 2005 Form 10-K for further discussion of this measure.

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Per Share Results Available to Common Stockholders

	Results for the Three Months					Results for the Six Months
	Ended June 30					Ended June 30
	2006			2005		2006			2005
				(Restated)					(Restated)
Net income from continuing operations (a)	$	0.87		$	1.06	$	1.71		$	1.69
Net (loss) income from discontinued operations		(0.01	)		—		(0.03	)		0.03
Net income	$	0.86		$	1.06	$	1.68		$	1.72

(a) The three and six months ended June 30, 2006 per share results available to common stockholders are reduced by $19 million and $38 million, or $0.08 per share and $0.15 per share, of undeclared preferred stock dividends. 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.

Net operating income from continuing operations for the three months ended June 30, 2006 increased $33 million as compared with the same period in 2005. Net operating income from the Standard and Specialty segments increased $96 million, and benefited from increased net investment income. Additionally, Standard and Specialty had favorable net prior year development of $12 million for the three months ended June 30, 2006, as compared to unfavorable net prior year development of $33 million for the same period in 2005. The Property & Casualty Operations produced a combined ratio of 95.2% and 99.9% in the second quarter of 2006 and 2005.

Net operating income for Corporate and Other Non-Core decreased $63 million for the three months ended June 30, 2006 as compared to the same period in 2005. The 2005 results included a $115 million benefit related to a federal income tax settlement and a commutation loss of $36 million.

“CNA continues to demonstrate consistently improving financial performance,” said Stephen W. Lilienthal, Chairman and Chief Executive Officer of CNA Financial Corporation. “Our core Property & Casualty Operations’ combined ratio was 95.2%, the lowest it has been since we formed this unit in 2001. We continue to focus on disciplined pricing, retention of quality customers, controlled new business growth and aggressive expense management. In addition, investment income was a major contributor to our second quarter results.”

Net income for the three months ended June 30, 2006 decreased $51 million as compared with the same period in 2005. This decrease was primarily due to decreased net realized investment results, partially offset by improved net operating income.

Net realized investment losses were $64 million for the three months ended June 30, 2006 as compared to net realized investment gains of $16 million for the three months ended June 30, 2005. The decrease in net realized results was primarily driven by decreased results in fixed maturity securities due to sales of securities at a loss and a modest increase in impairment losses.

Net operating income from continuing operations for the six months ended June 30, 2006 increased $75 million as compared with the same period in 2005. Net operating income from the Standard and Specialty segments increased $163 million, driven by increased net investment income and lower expenses, partially offset by less favorable current accident year results. Additionally, Standard and Specialty had favorable net prior year development of $8

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million for the six months ended June 30, 2006, as compared to unfavorable net prior year development of $74 million for the same period in 2005. The Property & Casualty Operations produced a combined ratio of 96.0% and 99.4% for the six months ended June 30, 2006 and 2005.

Net income for the six months ended June 30, 2006 decreased $7 million as compared with the same period in 2005. This decrease was primarily due to decreased net realized investment results and unfavorable results from discontinued operations. These items were partially offset by improved net operating income. The 2005 net income included a federal income tax settlement and a commutation of a finite reinsurance contract.

Net realized investment losses were $63 million for the six months ended June 30, 2006 as compared to net realized investment gains of $2 million for the six months ended June 30, 2005. The decrease in net realized results was primarily driven by decreased results in fixed maturity securities due to sales of securities at a loss.

Segment Results for the Three Months Ended June 30, 2006

													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income	$	167		$	110		$	277		$	5		$	23		$	305
Net realized investment losses		(24	)		(9	)		(33	)		(23	)		(8	)		(64	)
Net income (loss) from continuing operations	$	143		$	101		$	244		$	(18	)	$	15		$	241

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 from continuing operations	$	117	$	86	$	203	$	4		$	81		$	288

Segment Results for the Six Months Ended June 30, 2006

													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income	$	300		$	224		$	524		$	2		$	13		$	539
Net realized investment losses		(15	)		(7	)		(22	)		(30	)		(11	)		(63	)
Net income (loss) from continuing operations	$	285		$	217		$	502		$	(28	)	$	2		$	476

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 from continuing operations	$	210	$	168	$	378	$	2		$	86		$	466

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Property & Casualty Operations Gross Written Premiums

	Three months ended June 30				Six months ended June 30
($ millions)	2006		2005		2006		2005
Standard Lines	$	1,579	$	1,543	$	3,140	$	3,059
Specialty Lines		709		688		1,534		1,457
Total P&C Operations	$	2,288	$	2,231	$	4,674	$	4,516

Property & Casualty Operations Net Written Premiums

	Three months ended June 30				Six months ended June 30
($ millions)	2006		2005		2006		2005
Standard Lines	$	1,163	$	1,134	$	2,273	$	2,305
Specialty Lines		625		595		1,273		1,189
Total P&C Operations	$	1,788	$	1,729	$	3,546	$	3,494

Property & Casualty Calendar Year Loss Ratios

	Three months ended June 30						Six months ended June 30
	2006			2005			2006			2005
Standard Lines		67.6	%		71.2	%		69.7	%		71.1	%
Specialty Lines		61.2	%		69.0	%		60.2	%		65.8	%
Total P&C Operations		65.3	%		70.4	%		66.2	%		69.3	%
Total P&C Companies (a)		73.8	%		79.7	%		74.5	%		77.1	%

(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
	2006			2005			2006			2005
Standard Lines		99.1	%		103.4	%		101.2	%		103.5	%
Specialty Lines		88.5	%		94.0	%		87.1	%		91.8	%
Total P&C Operations		95.2	%		99.9	%		96.0	%		99.4	%
Total P&C Companies (a)		103.1	%		110.6	%		104.7	%		108.5	%

(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 2006			Accident year 2005			Accident year 2005
	evaluated at			evaluated at			evaluated at
	June 30, 2006			December 31, 2005			June 30, 2006
Standard Lines		65.8	%		76.4	%		75.1	%
Specialty Lines		60.5	%		63.7	%		62.2	%
Total P&C Operations		64.0	%		72.2	%		70.8	%

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Property & Casualty Net Accident Year Loss Ratios

	Accident year 2006			Accident year 2005			Accident year 2005
	evaluated at			evaluated at			evaluated at
	June 30, 2006			December 31, 2005			June 30, 2006 (a)
Standard Lines		67.7	%		76.3	%		74.9	%
Specialty Lines		60.3	%		63.4	%		61.7	%
Total P&C Operations		65.0	%		71.6	%		70.1	%

(a) The 2005 net accident year loss ratio evaluated at June 30, 2006 includes 11 points, 1 point, and 7 points related to catastrophe losses for Standard Lines, Specialty Lines, and P&C Operations.

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 increased $29 million for the second quarter of 2006 as compared with the same period in 2005. Standard Lines retention improved 3 points to 81% while rates, on average, remained flat during the second quarter of 2006.

• Net operating income increased $67 million for the second quarter of 2006 as compared with the same period in 2005. This increase was primarily driven by an increase in net investment income and favorable net prior year development of $12 million in 2006 as compared to unfavorable net prior year development of $25 million in 2005. These increases to operating income were partially offset by less favorable current accident year results.

• Net income for the second quarter of 2006 increased $26 million as compared with the same period in 2005. This improvement was attributable to increased net operating income, partially offset by decreased realized investment results.

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

• Net written premiums increased $30 million for the second quarter of 2006 as compared with the same period in 2005. Specialty Lines retention improved 1 point to 88% while rates, on average, increased 1% during the second quarter of 2006.

• Net operating income increased $29 million for the second quarter of 2006 as compared with the same period in 2005. This increase was primarily driven by an increase in net investment income and the absence of a $17 million loss recorded in 2005, after the impact of taxes and minority interests, in the surety line of business related to a large national contractor.

• Net income increased $15 million for the second quarter of 2006 as compared with the same period in 2005. This increase was attributable to increased net operating income, partially offset by decreased 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. Net earned premiums relate primarily to the group and individual long term care businesses.

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• Net results for the second quarter of 2006 decreased $22 million as compared with the same period in 2005, primarily due to an increase in net realized investment losses.

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 (APMT). In addition, this segment includes the results of certain property and casualty insurance run-off operations, including CNA Re.

• Net income for the second quarter of 2006 decreased $66 million as compared with the same period in 2005. Net income for the second quarter of 2005 included $115 million related to a federal income tax settlement and a release of federal income tax reserves, and a commutation loss of $36 million resulting from a finite reinsurance contract. Net income for the second quarter of 2006 includes improved net investment income and the release of a restructuring accrual related to lease termination costs of $8 million.

Net Investment Income

Pretax net investment income for the second quarter of 2006 increased $113 million over the same period of 2005. The improvement was primarily driven by interest rate increases across fixed maturity securities and short term investments, an increase in asset base and a reduction of interest expense on funds withheld and other deposits. Commutations of significant finite reinsurance contracts completed in 2005 contributed to the increase in asset base and the decrease in interest expense.

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.

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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 CNA Financial Corporation, and other members of senior management. Participants can access the call by dialing (800) 500-0177 or for international callers (719) 457-2679. 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 8, 2006. The replay can also be accessed by dialing (888) 203-1112 or for international callers (719) 457-0820 and using passcode 2049827. Financial supplement information related to the second quarter results is available on the investor relations pages of the CNA Website or by contacting David Adams at (312) 822-2183.

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
June 30, 2006

This report is for informational purposes only and includes consolidated financial statements and financial exhibits that are unaudited. This report should be read in conjunction with documents filed with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

CNA Financial Corporation
Table of Contents
June 30, 2006

	Page
Supplemental Financial Information	i-ii
Statements of Operations		1
Components of Net Income (Loss) and Per Share Data		2
Selected Balance Sheets 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
Asbestos Summary by Policyholder Category		15

CNA Financial Corporation

Supplemental Financial Information

DEFINITIONS AND PRESENTATION

Ÿ	P&C Operations includes Standard Lines and Specialty Lines.
Ÿ	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.
Ÿ	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.
Ÿ	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.
Ÿ	Management utilizes the net operating income financial measure to monitor the Company’s operations. Please refer to Note N of the Consolidated Financial Statements within the 2005 Form 10-K for further discussion of this measure.
Ÿ	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 financial results prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums. The expense ratio is the percentage of 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.
Ÿ	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.
Ÿ	Certain immaterial differences are due to rounding.
Ÿ	N/M = Not Meaningful

i

CNA Financial Corporation

Supplemental Financial Information

Restatement for Discontinued Operations

The Company has restated its Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2005. A review of discontinued operations completed in February 2006 identified an overstatement of the net assets of these discontinued operations and errors in accounting for the periodic results of these operations. The Company did not have an effectively designed control process in place to ensure adequate oversight, analysis, reconciliation, documentation and periodic evaluation of the results and balances that comprise the net assets of businesses reported as discontinued operations. There was also a lack of understanding of subsidiary ledger detail which contributed to the Company’s failure to eliminate intercompany activity within discontinued operations and between continuing and discontinued operations. As a result, the balances related to discontinued operations were incorrectly established in the Company’s current general ledger system in 1997 in connection with a general ledger conversion, creating an overstatement of the reported net assets of discontinued operations. In addition, the Company’s evaluation of the periodic results of discontinued operations was ineffective. The correction of the elimination issue noted above caused the historical results of discontinued operations to change, requiring current evaluation of the revised periodic results for reporting purposes. Further, in light of the impact of the elimination corrections, the Company reviewed its historical process to evaluate the results of discontinued operations and determined that process did not address recorded loss reserves at all consolidating levels for discontinued operations. Therefore, the Company determined that it was appropriate to recognize the impact of the revised historical periodic income or loss of discontinued operations.

Restatement for Condensed Consolidated Statements of Cash Flows

The Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2005 has been restated to reflect the following:

Ÿ	Net purchases and sales of trading securities and changes in the net receivable/payable from unsettled investment purchases and sales related to trading securities, previously classified within investing activities, have been reclassified to cash flows from operating activities.
Ÿ	Cash flows from equity method investees were reclassified to distinguish between return on investments, which are reflected within operating cash flows, and return of investments, which are reflected within investing cash flows. Previously, all amounts were reflected within investing cash flows.
Ÿ	Deposits and withdrawals related to investment contract products issued by the Company have been reflected within financing cash flows. Previously, amounts related to certain investment contracts were reflected within operating cash flows.
Ÿ	The impact of cumulative translation adjustment, previously reflected within investing activities, is now classified within operating activities.

The restatements related to cash flows had no impact on the total change in cash from continuing operations within the Condensed Consolidated Statements of Cash Flows.

Additionally, the Company has revised its Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2005 to separately disclose the operating, investing and financing portions of the cash flows attributable to discontinued operations, as well as to include the cash balance related to discontinued operations in the Condensed Consolidated Statements of Cash Flows.

ii

CNA FINANCIAL CORPORATION
Financial Supplement
Statements of Operations

PERIOD ENDED JUNE 30	Three Months									Six Months
							Fav /									Fav /
							(Unfav)									(Unfav)
(In millions)	2006			2005			% Change			2006			2005			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,892		$	1,912			(1	)%	$	3,761		$	3,811			(1	)%
Net investment income		552			439			26			1,122			845			33
Realized investment gains (losses), net of participating policyholders’ and minority interests		(98	)		26			N/M			(89	)		7			N/M
Other revenues		66			193			(66	)		119			271			(56	)
Total revenues		2,412			2,570			(6	)		4,913			4,934			—
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,432			1,581			9			2,924			3,015			3
Amortization of deferred acquisition costs		372			374			1			742			752			1
Other operating expenses		242			251			4			499			525			5
Restructuring and other related charges		(13	)		—			N/M			(13	)		—			N/M
Interest		28			30			7			58			67			13
Total claims, benefits and expenses		2,061			2,236			8			4,210			4,359			3
Income before income tax and minority interest		351			334			5			703			575			22
Income tax expense		(100	)		(48	)		(108	)		(208	)		(104	)		(100	)
Minority interest		(10	)		2			N/M			(19	)		(5	)		N/M
Income from continuing operations		241			288			(16	)		476			466			2
Income (loss) from discontinued operations, net of tax		(2	)		2			(200	)		(8	)		9			(189	)
Net income	$	239		$	290			(18	)%	$	468		$	475			(1	)%

1

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

PERIOD ENDED JUNE 30	Three Months								Six Months
						Fav /								Fav /
						(Unfav)								(Unfav)
(In millions, except per share data)	2006			2005		% Change			2006			2005		% Change
COMPONENTS OF NET INCOME (LOSS)
Net operating income	$	305		$	272		12	%	$	539		$	464		16	%
Net realized investment gains (losses), net of participating policyholders’ and minority interests		(64	)		16		N/M			(63	)		2		N/M
Income from continuing operations		241			288		(16	)		476			466		2
Income (loss) from discontinued operations, net of tax		(2	)		2		(200	)		(8	)		9		(189	)
Net income	$	239		$	290		(18	)%	$	468		$	475		(1	)%
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE
Income from continuing operations	$	0.87		$	1.06		(18	)%	$	1.71		$	1.69		1	%
Income (loss) from discontinued operations		(0.01	)		—		N/M			(0.03	)		0.03		(200	)
Basic and diluted earnings per share available to common stockholders (1)	$	0.86		$	1.06		(19	)%	$	1.68		$	1.72		(2	)%
Weighted average outstanding common stock and common stock equivalents		256.0			256.0					256.0			256.0

(1) The three and six months ended June 30, 2006 per share results available to common stockholders are reduced by $19 million and $38 million, or $0.08 per share and $0.15 per share, of undeclared but accumulated preferred stock dividends. 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 but accumulated preferred stock dividends.

2

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

(In millions, except per share data)	June 30, 2006			December 31, 2005
Total assets	$	58,912		$	58,786
Insurance reserves		41,660			42,436
Debt		1,679			1,690
Total liabilities		49,675			49,545
Minority interest		302			291
Accumulated other comprehensive income		(127	)		359
Total stockholders’ equity		8,935			8,950
Book value per common share (1)	$	31.05		$	31.26
Book value per common share excluding unrealized gain or loss on fixed maturity securities (1)	$	31.56		$	29.69
Outstanding shares of common stock (in millions of shares)		256.0			256.0

THREE MONTHS ENDED
JUNE 30
(In millions)	2006			2005
Net cash flows provided by operating activities (2)	$	297		$	794
Net cash flows used by investing activities		(196	)		(291	)
Net cash flows used by financing activities		(70	)		(510	)
Net cash flows	$	31		$	(7	)

SIX MONTHS ENDED
JUNE 30
(In millions)	2006			2005
Net cash flows provided by operating activities (2)	$	923		$	953
Net cash flows used by investing activities		(503	)		(401	)
Net cash flows used by financing activities		(413	)		(566	)
Net cash flows	$	7		$	(14	)

(1)	Book value per common share as of June 30, 2006 and December 31, 2005 excludes $750 million of preferred stock (Series H) and $235 million and $197 million of undeclared but accumulated dividends.
(2)	Operating cash flows for the three and six months ended June 30, 2006 include $1 million and $(4) million related to discontinued operations. Operating cash flows for the three and six months ended June 30, 2005 include $(13) million and $(24) million related to discontinued operations.

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, 2006
Gross	$	14,823	$	5,395	$	20,218
Ceded		3,698		1,411		5,109
Net	$	11,125	$	3,984	$	15,109
As of December 31, 2005
Gross	$	15,084	$	5,205	$	20,289
Ceded		3,838		1,411		5,249
Net	$	11,246	$	3,794	$	15,040

CLAIM & CLAIM ADJUSTMENT EXPENSE RESERVES

	Life & Group		Corporate &
(In millions)	Non-Core		Other Non-Core		Total Operations
As of June 30, 2006
Gross	$	3,185	$	6,774	$	30,177
Ceded		1,333		3,554		9,996
Net	$	1,852	$	3,220	$	20,181
As of December 31, 2005
Gross	$	3,277	$	7,372	$	30,938
Ceded		1,440		3,916		10,605
Net	$	1,837	$	3,456	$	20,333

4

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

THREE MONTHS ENDED JUNE 30, 2006

										Life & Group			Corporate &
(In millions)	Standard Lines			Specialty Lines			P&C Operations			Non-Core			Other Non-Core			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	14,905		$	5,316		$	20,221		$	3,231		$	7,089		$	30,541
Ceded		3,770			1,435			5,205			1,385			3,762			10,352
Net		11,135			3,881			15,016			1,846			3,327			20,189
Net incurred claim & claim adjustment expenses		735			387			1,122			104			32			1,258
Net claim & claim adjustment expense payments		(745	)		(284	)		(1,029	)		(98	)		(139	)		(1,266	)
Claim & claim adjustment expense reserves, end of period
Net		11,125			3,984			15,109			1,852			3,220			20,181
Ceded		3,698			1,411			5,109			1,333			3,554			9,996
Gross	$	14,823		$	5,395		$	20,218		$	3,185		$	6,774		$	30,177

SIX MONTHS ENDED JUNE 30, 2006

										Life & Group			Corporate &
(In millions)	Standard Lines			Specialty Lines			P&C Operations			Non-Core			Other Non-Core			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	15,084		$	5,205		$	20,289		$	3,277		$	7,372		$	30,938
Ceded		3,838			1,411			5,249			1,440			3,916			10,605
Net		11,246			3,794			15,040			1,837			3,456			20,333
Net incurred claim & claim adjustment expenses		1,510			760			2,270			210			67			2,547
Net claim & claim adjustment expense payments		(1,631	)		(570	)		(2,201	)		(195	)		(303	)		(2,699	)
Claim & claim adjustment expense reserves, end of period
Net		11,125			3,984			15,109			1,852			3,220			20,181
Ceded		3,698			1,411			5,109			1,333			3,554			9,996
Gross	$	14,823		$	5,395		$	20,218		$	3,185		$	6,774		$	30,177

5

CNA FINANCIAL CORPORATION
Financial Supplement
Investments by Segment Aggregation

	June 30, 2006					March 31, 2006					December 31, 2005
(In millions)	Book Value			Fair Value		Book Value			Fair Value		Book Value			Fair Value
Property & Casualty and Corporate & Other Non-Core:
Fixed maturities — taxable	$	20,401		$	20,067	$	18,185		$	18,031	$	16,988		$	16,972
Fixed maturities — tax exempt		3,730			3,691		3,444			3,435		7,579			7,631
Equities		325			500		221			391		221			374
Short-term investments		5,263			5,262		7,853			7,851		3,715			3,714
Limited partnership investments		1,414			1,414		1,383			1,383		1,223			1,223
Other (e.g., Real Estate)		28			26		38			36		34			32
Total investments	$	31,161		$	30,960	$	31,124		$	31,127	$	29,760		$	29,946
Net receivable/(payable)	$	(267	)			$	154				$	266
Securities lending collateral		(1,326	)				(1,751	)				(742	)
Life & Group Non-Core:
Fixed maturities — taxable	$	6,603		$	6,731	$	6,630		$	6,917	$	6,574		$	7,053
Fixed maturities — tax exempt		1,557			1,600		1,492			1,588		1,475			1,578
Equities		421			424		316			329		290			307
Short-term investments		359			359		426			426		523			524
Limited partnership investments		257			257		270			270		286			286
Other (e.g., Mortgage & Policy Loans)		1			1		1			1		1			1
Total investments	$	9,198		$	9,372	$	9,135		$	9,531	$	9,149		$	9,749
Net receivable/(payable)	$	(52	)			$	(68	)			$	84
Securities lending collateral		(15	)				(38	)				(25	)
Total investments	$	40,359		$	40,332	$	40,259		$	40,658	$	38,909		$	39,695
Total net receivable/(payable)	$	(319	)			$	86				$	350
Total securities lending collateral		(1,341	)				(1,789	)				(767	)

The information above related to net receivable/(payable) and securities lending collateral is provided to facilitate an analysis of significant changes in book value. When compared to the net receivable/(payable) per the Consolidated Balance Sheets, the amounts above exclude $97 million, $107 million and $86 million as of June 30, 2006, March 31, 2006 and December 31, 2005 where the net receivable/(payable) balance does not relate to the change in book value.

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)	2006			2005			% Change			2006			2005			% Change			2006			2005			% Change
Gross written premiums	$	1,579		$	1,543			2	%	$	709		$	688			3	%	$	2,288		$	2,231			3	%
Net written premiums		1,163			1,134			3			625			595			5			1,788			1,729			3
Net earned premiums		1,096			1,084			1			633			630			—			1,729			1,714			1
Net investment income		238			171			39			99			67			48			337			238			42
Other revenues		13			27			(52	)		41			29			41			54			56			(4	)
Total operating revenues		1,347			1,282			5			773			726			6			2,120			2,008			6
Claims, benefits and expenses:
Net incurred claims and benefits		741			772			4			388			435			11			1,129			1,207			6
Policyholders’ dividends		4			8			50			1			1			—			5			9			44
Amortization of deferred acquisition costs		238			237			—			131			132			1			369			369			—
Other insurance related expenses		103			103			—			41			24			(71	)		144			127			(13	)
Restructuring and other related charges		—			—			N/M			—			—			N/M			—			—			N/M
Other expenses		19			33			42			36			25			(44	)		55			58			5
Total claims, benefits and expenses		1,105			1,153			4			597			617			3			1,702			1,770			4
Operating income before income tax and minority interest		242			129			88			176			109			61			418			238			76
Income tax expense on operating income		(73	)		(27	)		(170	)		(58	)		(32	)		(81	)		(131	)		(59	)		(122	)
Minority interest		(2	)		(2	)		—			(8	)		4			N/M			(10	)		2			N/M
Net operating income from continuing operations		167			100			67			110			81			36			277			181			53
Realized investment gains (losses), net of participating policyholders’ and minority interests		(37	)		25			N/M			(13	)		8			N/M			(50	)		33			N/M
Income tax (expense) benefit on realized investment gains (losses)		13			(8	)		N/M			4			(3	)		N/M			17			(11	)		N/M
Net income from continuing operations	$	143		$	117			22	%	$	101		$	86			17	%	$	244		$	203			20	%
Financial Ratios
Loss & LAE		67.6	%		71.2	%					61.2	%		69.0	%					65.3	%		70.4	%
Acquisition expense		18.9			18.5						19.3			18.2						19.1			18.4
Underwriting expense		12.2			12.9						7.9			6.6						10.5			10.5
Dividends		0.4			0.8						0.1			0.2						0.3			0.6
Expense ratio, including dividends		31.5			32.2						27.3			25.0						29.9			29.5
Combined ratio		99.1	%		103.4	%					88.5	%		94.0	%					95.2	%		99.9	%

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)	2006			2005			2006			2005			% Change			2006			2005			% Change			2006			2005			% Change
Net earned premiums	$	1,729		$	1,714		$	159		$	204			(22	)%	$	4		$	(6	)		167	%	$	1,892		$	1,912			(1	)%
Net investment income		337			238			138			146			(5	)		77			55			40			552			439			26
Other revenues		54			56			24			25			(4	)		(12	)		112			(111	)		66			193			(66	)
Total operating revenues		2,120			2,008			321			375			(14	)		69			161			(57	)		2,510			2,544			(1	)
Claims, benefits and expenses:
Net incurred claims and benefits		1,129			1,207			266			284			6			31			80			61			1,426			1,571			9
Policyholders’ dividends		5			9			1			—			N/M			—			1			N/M			6			10			40
Amortization of deferred acquisition costs		369			369			4			6			33			(1	)		(1	)		—			372			374			1
Other insurance related expenses		144			127			40			71			44			(2	)		(3	)		(33	)		182			195			7
Restructuring and other related charges		—			—			—			—			N/M			(13	)		—			N/M			(13	)		—			N/M
Other expenses		55			58			13			16			19			20			12			(67	)		88			86			(2	)
Total claims, benefits and expenses		1,702			1,770			324			377			14			35			89			61			2,061			2,236			8
Operating income (loss) before income tax and minority interest		418			238			(3	)		(2	)		(50	)		34			72			(53	)		449			308			46
Income tax (expense) benefit on operating income (loss)		(131	)		(59	)		8			7			14			(11	)		14			(179	)		(134	)		(38	)		N/M
Minority interest		(10	)		2			—			—			N/M			—			—			N/M			(10	)		2			N/M
Net operating income from continuing operations		277			181			5			5			—			23			86			(73	)		305			272			12
Realized investment gains (losses), net of participating policyholders’ and minority interests		(50	)		33			(34	)		(1	)		N/M			(14	)		(6	)		(133	)		(98	)		26			N/M
Income tax (expense) benefit on realized investment gains (losses)		17			(11	)		11			—			N/M			6			1			N/M			34			(10	)		N/M
Net income (loss) from continuing operations	$	244		$	203		$	(18	)	$	4			N/M	%	$	15		$	81			(81	)%	$	241		$	288			(16	)%

	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	2006			2005			2006			2005			% Change			2006			2005			% Change			2006			2005			% Change
Gross written premiums	$	2,288		$	2,231		$	208		$	206			1	%	$	9		$	300			(97	)%	$	2,505		$	2,737			(8	)%
Net written premiums		1,788			1,729			154			199			(23	)		3			(7	)		143			1,945			1,921			1
Net earned premiums		1,729			1,714			158			203			(22	)		3			(7	)		143			1,890			1,910			(1	)
Financial Ratios
Loss & LAE		65.3	%		70.4	%		N/M	%		N/M	%					N/M	%		N/M	%					73.8	%		79.7	%
Acquisition expense		19.1			18.4			N/M			N/M						N/M			N/M						18.2			18.5
Underwriting expense		10.5			10.5			N/M			N/M						N/M			N/M						10.8			11.9
Dividends		0.3			0.6			N/M			N/M						N/M			N/M						0.3			0.5
Expense ratio, including dividends		29.9			29.5			N/M			N/M						N/M			N/M						29.3			30.9
Combined ratio		95.2	%		99.9	%		N/M	%		N/M	%					N/M	%		N/M	%					103.1	%		110.6	%

8

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

SIX MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
JUNE 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2006			2005			% Change			2006			2005			% Change			2006			2005			% Change
Gross written premiums	$	3,140		$	3,059			3	%	$	1,534		$	1,457			5	%	$	4,674		$	4,516			3	%
Net written premiums		2,273			2,305			(1	)		1,273			1,189			7			3,546			3,494			1
Net earned premiums		2,182			2,253			(3	)		1,261			1,203			5			3,443			3,456			—
Net investment income		466			354			32			186			123			51			652			477			37
Other revenues		33			48			(31	)		74			60			23			107			108			(1	)
Total operating revenues		2,681			2,655			1			1,521			1,386			10			4,202			4,041			4
Claims, benefits and expenses:
Net incurred claims and benefits		1,521			1,602			5			760			792			4			2,281			2,394			5
Policyholders’ dividends		8			12			33			2			2			—			10			14			29
Amortization of deferred acquisition costs		476			476			—			258			262			2			734			738			1
Other insurance related expenses		204			242			16			78			48			(63	)		282			290			3
Restructuring and other related charges		—			—			N/M			—			—			N/M			—			—			N/M
Other expenses		38			59			36			68			53			(28	)		106			112			5
Total claims, benefits and expenses		2,247			2,391			6			1,166			1,157			(1	)		3,413			3,548			4
Operating income before income tax and minority interest		434			264			64			355			229			55			789			493			60
Income tax expense on operating income		(129	)		(59	)		(119	)		(117	)		(68	)		(72	)		(246	)		(127	)		(94	)
Minority interest		(5	)		(4	)		(25	)		(14	)		(1	)		N/M			(19	)		(5	)		N/M
Net operating income from continuing operations		300			201			49			224			160			40			524			361			45
Realized investment gains (losses), net of participating policyholders’ and minority interests		(24	)		20			N/M			(10	)		9			N/M			(34	)		29			N/M
Income tax (expense) benefit on realized investment gains (losses)		9			(11	)		182			3			(1	)		N/M			12			(12	)		200
Net income from continuing operations	$	285		$	210			36	%	$	217		$	168			29	%	$	502		$	378			33	%
Financial Ratios
Loss & LAE		69.7	%		71.1	%					60.2	%		65.8	%					66.2	%		69.3	%
Acquisition expense		18.7			19.8						18.6			19.1						18.7			19.6
Underwriting expense		12.4			12.0						8.2			6.7						10.8			10.1
Dividends		0.4			0.6						0.1			0.2						0.3			0.4
Expense ratio, including dividends		31.5			32.4						26.9			26.0						29.8			30.1
Combined ratio		101.2	%		103.5	%					87.1	%		91.8	%					96.0	%		99.4	%

9

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

SIX MONTHS ENDED	P&C Operations						Life & Group Non-Core										Corporate & Other Non-Core										Total Operations
JUNE 30														Fav / (Unfav)										Fav / (Unfav)										Fav / (Unfav)
(In millions)	2006			2005				2006			2005			% Change				2006			2005			% Change				2006			2005			% Change
Net earned premiums	$	3,443		$	3,456			$	322		$	370			(13	)%		$	(4	)	$	(15	)		73	%		$	3,761		$	3,811			(1	)%
Net investment income		652			477				325			252			29				145			116			25				1,122			845			33
Other revenues		107			108				36			58			(38	)			(24	)		105			(123	)			119			271			(56	)
Total operating revenues		4,202			4,041				683			680			—				117			206			(43	)			5,002			4,927			2
Claims, benefits and expenses:
Net incurred claims and benefits		2,281			2,394				572			518			(10	)			60			88			32				2,913			3,000			3
Policyholders’ dividends		10			14				1			—			N/M				—			1			N/M				11			15			27
Amortization of deferred acquisition costs		734			738				8			13			38				—			1			N/M				742			752			1
Other insurance related expenses		282			290				93			125			26				13			6			(117	)			388			421			8
Restructuring and other related charges		—			—				—			—			N/M				(13	)		—			N/M				(13	)		—			N/M
Other expenses		106			112				26			30			13				37			29			(28	)			169			171			1
Total claims, benefits and expenses		3,413			3,548				700			686			(2	)			97			125			22				4,210			4,359			3
Operating income (loss) before income tax and minority interest		789			493				(17	)		(6	)		(183	)			20			81			(75	)			792			568			39
Income tax (expense) benefit on operating income (loss)		(246	)		(127	)			19			12			58				(7	)		16			(144	)			(234	)		(99	)		(136	)
Minority interest		(19	)		(5	)			—			—			N/M				—			—			N/M				(19	)		(5	)		N/M
Net operating income from continuing operations		524			361				2			6			(67	)			13			97			(87	)			539			464			16
Realized investment gains (losses), net of participating policyholders’ and minority interests		(34	)		29				(46	)		(6	)		N/M				(9	)		(16	)		44				(89	)		7			N/M
Income tax (expense) benefit on realized investment gains (losses)		12			(12	)			16			2			N/M				(2	)		5			(140	)			26			(5	)		N/M
Net income (loss) from continuing operations	$	502		$	378			$	(28	)	$	2			N/M	%		$	2		$	86			(98	)%		$	476		$	466			2	%

	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	2006			2005				2006			2005			% Change				2006			2005			% Change				2006			2005			% Change
Gross written premiums	$	4,674		$	4,516			$	402		$	484			(17	)%		$	8		$	552			(99	)%		$	5,084		$	5,552			(8	)%
Net written premiums		3,546			3,494				319			371			(14	)			(7	)		(27	)		74				3,858			3,838			1
Net earned premiums		3,443			3,456				318			364			(13	)			(5	)		(15	)		67				3,756			3,805			(1	)
Financial Ratios
Loss & LAE		66.2	%		69.3	%			N/M	%		N/M	%						N/M	%		N/M	%						74.5	%		77.1	%
Acquisition expense		18.7			19.6				N/M			N/M							N/M			N/M							18.3			19.5
Underwriting expense		10.8			10.1				N/M			N/M							N/M			N/M							11.6			11.5
Dividends		0.3			0.4				N/M			N/M							N/M			N/M							0.3			0.4
Expense ratio, including dividends		29.8			30.1				N/M			N/M							N/M			N/M							30.2			31.4
Combined ratio		96.0	%		99.4	%			N/M	%		N/M	%						N/M	%		N/M	%						104.7	%		108.5	%

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 June 30, 2006	$	5	$	1	$	6	$	—	$	6
Six months ended June 30, 2006		17		1		18		—		18
Three months ended June 30, 2005	$	5	$	—	$	5	$	—	$	5
Six months ended June 30, 2005		6		—		6		—		6

CATASTROPHE LOSSES (AFTER-TAX)							Corporate &
(In millions)	Standard Lines		Specialty Lines		P&C Operations		Other Non-Core		Total
Three months ended June 30, 2006	$	3	$	1	$	4	$	—	$	4
Six months ended June 30, 2006		11		1		12		—		12
Three months ended June 30, 2005	$	4	$	—	$	4	$	—	$	4
Six months ended June 30, 2005		4		—		4		—		4

11

CNA FINANCIAL CORPORATION
Financial Supplement
Analysis of Pretax Net Investment Income

(In millions)

	Standard Lines
	1Q05			2Q05			3Q05			4Q05			YTD 2005			1Q06			2Q06			YTD 2006
Limited partnership income	$	42		$	22		$	38		$	37		$	139		$	38		$	27		$	65
Interest on funds withheld and other deposits		(18	)		(34	)		(34	)		(19	)		(105	)		(14	)		(22	)		(36	)
Income from trading securities		1			—			1			—			2			—			—			—
Other investment income		158			183			181			209			731			204			233			437
Net investment income	$	183		$	171		$	186		$	227		$	767		$	228		$	238		$	466

	Specialty Lines
	1Q05			2Q05			3Q05			4Q05			YTD 2005			1Q06			2Q06			YTD 2006
Limited partnership income	$	13		$	7		$	12		$	13		$	45		$	13		$	10		$	23
Interest on funds withheld and other deposits		(12	)		(1	)		(2	)		(2	)		(17	)		(2	)		(1	)		(3	)
Income from trading securities		—			—			—			—			—			—			—			—
Other investment income		55			61			64			73			253			76			90			166
Net investment income	$	56		$	67		$	74		$	84		$	281		$	87		$	99		$	186

	P&C Operations
	1Q05			2Q05			3Q05			4Q05			YTD 2005			1Q06			2Q06			YTD 2006
Limited partnership income	$	55		$	29		$	50		$	50		$	184		$	51		$	37		$	88
Interest on funds withheld and other deposits		(30	)		(35	)		(36	)		(21	)		(122	)		(16	)		(23	)		(39	)
Income from trading securities		1			—			1			—			2			—			—			—
Other investment income		213			244			245			282			984			280			323			603
Net investment income	$	239		$	238		$	260		$	311		$	1,048		$	315		$	337		$	652

	Life & Group Non-Core
	1Q05			2Q05		3Q05		4Q05		YTD 2005		1Q06		2Q06			YTD 2006
Limited partnership income	$	9		$	1	$	8	$	4	$	22	$	10	$	8		$	18
Interest on funds withheld and other deposits		—			—		—		—		—		—		—			—
Income from trading securities		(31	)		14		40		22		45		42		(9	)		33
Other investment income		128			131		131		136		526		135		139			274
Net investment income	$	106		$	146	$	179	$	162	$	593	$	187	$	138		$	325

	Corporate & Other Non-Core
	1Q05			2Q05			3Q05			4Q05			YTD 2005			1Q06			2Q06			YTD 2006
Limited partnership income	$	15		$	8		$	14		$	11		$	48		$	13		$	8		$	21
Interest on funds withheld and other deposits		(9	)		(15	)		(14	)		(6	)		(44	)		(9	)		(7	)		(16	)
Income from trading securities		—			—			—			—			—			—			—			—
Other investment income		55			62			61			69			247			64			76			140
Net investment income	$	61		$	55		$	61		$	74		$	251		$	68		$	77		$	145

	Total Operations
	1Q05			2Q05			3Q05			4Q05			YTD 2005			1Q06			2Q06			YTD 2006
Limited partnership income	$	79		$	38		$	72		$	65		$	254		$	74		$	53		$	127
Interest on funds withheld and other deposits		(39	)		(50	)		(50	)		(27	)		(166	)		(25	)		(30	)		(55	)
Income from trading securities		(30	)		14			41			22			47			42			(9	)		33
Other investment income		396			437			437			487			1,757			479			538			1,017
Net investment income	$	406		$	439		$	500		$	547		$	1,892		$	570		$	552		$	1,122

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)	2006			2005			% Change			2006			2005			% Change
Property & Casualty Companies
Gross written premiums	$	2,415		$	2,327			4	%	$	4,805		$	4,732			2	%
Net written premiums		1,859			1,809			3			3,621			3,611			—
Net earned premiums		1,631			1,675			(3	)		3,175			3,306			(4	)
Claim and claim adjustment expenses		1,213			1,305			7			2,418			2,561			6
Acquisition expenses		334			294			(14	)		630			628			—
Underwriting expenses		231			258			10			457			500			9
Policyholders’ dividends		6			7			14			10			12			17
Underwriting loss		(153	)		(189	)		19			(340	)		(395	)		14
Net investment income (1)		470			411			14			898			1,248			(28	)
Other revenues (expenses)		(38	)		81			(147	)		(78	)		45			N/M
Income tax expense		(126	)		(39	)		N/M			(168	)		(77	)		(118	)
Net realized gains		(56	)		24			N/M			(49	)		47			N/M
Net income	$	97		$	288			(66	)%	$	263		$	868			(70	)%
Financial Ratios
Loss and LAE		74.4	%		77.9	%					76.2	%		77.5	%
Acquisition expense		18.0			16.2						17.4			17.4
Underwriting expense		12.3			14.3						14.4			13.8
Policyholders’ dividends		0.4			0.4						0.3			0.4
Expense ratio		30.7			30.9						32.1			31.6
Combined ratio		105.1	%		108.8	%					108.3	%		109.1	%
Life Companies
Earned premium	$	2		$	2					$	5		$	6

SUPPLEMENTAL STATUTORY DATA

	(Preliminary)
(In millions)	June 30, 2006		December 31, 2005
Property & Casualty Companies
Statutory surplus (2)	$	7,374	$	6,940
Life Companies
Statutory surplus	$	669	$	627

(1)	The six months ended June 30, 2005 includes $500 million of dividends from CCC’s life subsidiary, Continental Assurance Company.
(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
	2006 YTD			2005 FY			2005 FY
	Evaluated at			Evaluated at			Evaluated at
	06/30/06			12/31/05			06/30/06
Gross Accident Year		65.8	%		76.4	%		75.1	%
Impact of Reinsurance		1.9			(0.1	)		(0.2	)
Net Accident Year (1)		67.7			76.3			74.9	%
Impact of Significant Commutations		—			6.2
Impact of Corporate Covers		—			0.7
Impact of Development & Change in Allowance for Uncollectible Reinsurance		2.0			4.3
Net Calendar Year		69.7	%		87.5	%

	Specialty Lines
	2006 YTD			2005 FY			2005 FY
	Evaluated at			Evaluated at			Evaluated at
	06/30/06			12/31/05			06/30/06
Gross Accident Year		60.5	%		63.7	%		62.2	%
Impact of Reinsurance		(0.2	)		(0.3	)		(0.5	)
Net Accident Year (1)		60.3			63.4			61.7	%
Impact of Significant Commutations		—			0.9
Impact of Corporate Covers		—			(0.3	)
Impact of Development & Change in Allowance for Uncollectible Reinsurance		(0.1	)		1.3
Net Calendar Year		60.2	%		65.3	%

	P&C Operations
	2006 YTD			2005 FY			2005 FY
	Evaluated at			Evaluated at			Evaluated at
	06/30/06			12/31/05			06/30/06
Gross Accident Year		64.0	%		72.2	%		70.8	%
Impact of Reinsurance		1.0			(0.6	)		(0.7	)
Net Accident Year (1)		65.0			71.6			70.1	%
Impact of Significant Commutations		—			4.3
Impact of Corporate Covers		—			0.4
Impact of Development & Change in Allowance for Uncollectible Reinsurance		1.2			3.2
Net Calendar Year		66.2	%		79.5	%

(1) The 2005 net accident year loss ratio evaluated at June 30, 2006 includes 11 points, 1 point, and 7 points related to catastrophe losses for Standard Lines, Specialty Lines, and P&C Operations.

14

CNA FINANCIAL CORPORATION
Financial Supplement
Asbestos Summary by Policyholder Category

			Net Paid			Net Asbestos		Percent of
	Number of		Losses in 2006			Reserves		Asbestos Net
JUNE 30, 2006	Policyholders		(In millions)			(In millions)		Reserves
Policyholders with Settlement Agreements
Structured Settlements		15	$	18		$	165		11	%
Wellington		3		1			14		1
Coverage in Place		39		(18	)		93		6
Fibreboard		1		—			54		4
Total with Settlement Agreements		58		1			326		22
Other Policyholders with Active Accounts
Large Asbestos Accounts		205		37			262		17
Small Asbestos Accounts		1,076		9			96		6
Total Other Policyholders		1,281		46			358		23
Assumed Reinsurance & Pools				3			144		10
Unassigned IBNR (1)				—			677		45
Total		1,339	$	50		$	1,505		100	%

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

15