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 31, 2006

CNA FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-5823	36-6169860
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

333 S. Wabash, Chicago, Illinois	60604
(Address of principal executive offices)	(Zip Code)

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

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 31, 2006, the Registrant issued a press release and posted a financial supplement providing information on its results of operations for the third 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 October 31, 2006, providing information on the third quarter 2006 results of operations.
99.2	CNA Financial Corporation financial supplement, posted October 31, 2006, providing supplemental financial information on the third 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: October 31, 2006

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EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

CONTACT:
MEDIA:	ANALYSTS:
Charles M. Boesel, 312/822-2592	Nancy M. Bufalino, 312/822-7757
Katrina W. Parker, 312/822-5167	John J. Hanrahan, 312/822-6586
	David C. Adams, 312/822-2183

CNA FINANCIAL ANNOUNCES
3rd QUARTER 2006 RESULTS

CHICAGO, October 31, 2006 -— CNA Financial Corporation (NYSE: CNA) today announced third quarter of 2006 results, which included the following items:

• Net operating income from continuing operations for the third quarter of 2006 of $283 million as compared with a net operating loss from continuing operations of $39 million for the same period in 2005. The third quarter of 2006 benefited from decreased catastrophe impacts of $281 million after-tax as compared to 2005.

• Net income for the third quarter of 2006 of $311 million as compared with $6 million for the same period in 2005.

• Property & Casualty Operations combined ratio of 94.5%.

	Results for the Three Months					Results for the Nine Months
	Ended September 30					Ended September 30
($ millions)	2006		2005			2006			2005
			(Restated)						(Restated)
Net operating income (loss) (a)	$	283	$	(39	)	$	822		$	425
Net realized investment gains (losses)		22		42			(41	)		44
Net income from continuing operations		305		3			781			469
Net income (loss) from discontinued operations		6		3			(2	)		12
Net income	$	311	$	6		$	779		$	481

(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 Ended					Results for the Nine Months Ended
	September 30					September 30
	2006		2005			2006			2005
			(Restated)						(Restated)
Net income (loss) from continuing operations (a)	$	1.13	$	(0.06	)	$	2.84		$	1.63
Net income (loss) from discontinued operations		0.02		0.02			(0.01	)		0.05
Net income (loss)	$	1.15	$	(0.04	)	$	2.83		$	1.68

(a)   The three and nine months ended September 30, 2006 per share results available to common stockholders are reduced by $8 million and $46 million, or $0.02 per share and $0.17 per share, of undeclared preferred stock dividends. 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 undeclared but accumulated preferred stock dividends relate to the Company’s Series H Cumulative Preferred Stock which was repurchased from Loews on August 8, 2006.

Net operating income from continuing operations for the three months ended September 30, 2006 increased $322 million as compared with the same period in 2005. Operating results in the third quarter of 2005 were adversely impacted by third quarter catastrophes of $294 million after-tax. Net operating income from the Standard and Specialty segments increased $318 million, and benefited from decreased catastrophe impacts and improved net investment income. Additionally, Standard and Specialty had favorable net prior year development of $7 million for the three months ended September 30, 2006, as compared to unfavorable net prior year development of $16 million for the same period in 2005.

“We are pleased to report a very solid third quarter,” said Stephen W. Lilienthal, Chairman and Chief Executive Officer of CNA Financial Corporation. “Every major driver of our results — underwriting production, investment income, operating cash flow and expense management — is contributing to consistently improving financial performance.”

Net income for the three months ended September 30, 2006 increased $305 million as compared with the same period in 2005. This increase was primarily due to the improved net operating results.

Net realized investment gains for the three months ended September 30, 2006 decreased $20 million as compared with the same period in 2005. The decrease in net realized investment results was primarily driven by an increase in interest related other-than-temporary impairment losses on securities for which the Company did not assert an intent to hold until an anticipated recovery in value.

Net operating income from continuing operations for the nine months ended September 30, 2006 increased $397 million as compared with the same period in 2005. Net operating income from the Standard and Specialty segments increased $481 million, and benefited from decreased catastrophe impacts and increased net investment income. In addition, the Standard and Specialty segments had favorable net prior year development of $15 million for the nine months ended September 30, 2006, as compared to unfavorable net prior year development of $90 million for the same period in 2005. Partially offsetting these increases were less favorable current accident year results. The Property & Casualty Operations produced a combined ratio of 94.9% and 97.4% for the nine months ended September 30, 2006 and 2005, before the 0.6 and 8.8 point impacts of catastrophes.

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Net income for the nine months ended September 30, 2006 increased $298 million as compared with the same period in 2005. This increase was primarily due to improved net operating income, partially offset by decreased net realized investment results and unfavorable results from discontinued operations.

Net realized investment losses were $41 million for the nine months ended September 30, 2006 as compared to net realized investment gains of $44 million for the nine months ended September 30, 2005. The decrease in net realized investment results was primarily driven by decreased gains on sales, the effect of interest rates on derivative positions and increases in interest related other-than-temporary impairment losses.

Segment Results for the Three Months Ended September 30, 2006
										Corporate
	Standard		Specialty		Total P&C		Life & Group			& Other
($ millions)	Lines		Lines		Ops.		Non-Core			Non-Core		Total
Net operating income (loss)	$	163	$	119	$	282	$	(15	)	$	16	$	283
Net realized investment gains (losses)		11		5		16		(7	)		13		22
Net income (loss) from continuing operations	$	174	$	124	$	298	$	(22	)	$	29	$	305

Segment Results for the Three Months Ended September 30, 2005
												Corporate
	Standard			Specialty		Total P&C			Life & Group			& Other
($ millions)	Lines			Lines		Ops.			Non-Core			Non-Core			Total
Net operating (loss) income	$	(144	)	$	108	$	(36	)	$	(35	)	$	32		$	(39	)
Net realized investment gains (losses)		33			11		44			(1	)		(1	)		42
Net (loss) income from continuing operations	$	(111	)	$	119	$	8		$	(36	)	$	31		$	3

Segment Results for the Nine Months Ended September 30, 2006
													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core		Total
Net operating income (loss)	$	463		$	343		$	806		$	(13	)	$	29	$	822
Net realized investment (losses) gain		(4	)		(2	)		(6	)		(37	)		2		(41	)
Net income (loss) from continuing operations	$	459		$	341		$	800		$	(50	)	$	31	$	781

Segment Results for the Nine Months Ended September 30, 2005
										Corporate
	Standard		Specialty		Total P&C		Life & Group			& 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) from continuing operations	$	99	$	287	$	386	$	(34	)	$	117		$	469

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Property & Casualty Operations Gross Written Premiums
	Three Months Ended September 30						Nine Months Ended September 30
($ millions)	2006			2005			2006			2005
Standard Lines	$	1,586		$	1,472		$	4,726		$	4,531
Specialty Lines		785			762			2,319			2,219
Total P&C Operations	$	2,371		$	2,234		$	7,045		$	6,750
Property & Casualty Operations Net Written Premiums
	Three Months Ended September 30						Nine Months Ended September 30
($ millions)	2006			2005			2006			2005
Standard Lines	$	1,121		$	1,047		$	3,394		$	3,352
Specialty Lines		675			649			1,948			1,838
Total P&C Operations	$	1,796		$	1,696		$	5,342		$	5,190
Property & Casualty Calendar Year Loss Ratios
	Three Months Ended September 30						Nine Months Ended September 30
	2006			2005			2006			2005
Standard Lines		68.7	%		106.3	%		69.4	%		82.5	%
Specialty Lines		60.7	%		58.4	%		60.4	%		63.3	%
Total P&C Operations		65.8	%		88.7	%		66.1	%		75.7	%
Total P&C Companies (a)		74.1	%		94.7	%		74.4	%		82.9	%
(a) P&C Companies includes Standard Lines, Specialty Lines and P&C business written in Life and Group Non-Core and Corporate and Other Non-Core, including CNA Re and asbestos, environmental pollution and mass tort exposures.
Property & Casualty Calendar Year Combined Ratios
	Three Months Ended September 30						Nine Months Ended September 30
	2006			2005			2006			2005
Standard Lines		99.2	%		139.6	%		100.5	%		115.2	%
Specialty Lines		86.6	%		85.9	%		86.9	%		89.8	%
Total P&C Operations		94.5	%		119.9	%		95.5	%		106.2	%
Total P&C Companies (a)		103.4	%		126.1	%		104.2	%		114.3	%
(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			Nine Months			Three Months			Nine Months
	Ended September			Ended September			Ended September			Ended September
	30, 2006			30, 2006			30, 2006			30, 2006
Standard Lines		66.8	%		68.2	%		97.5	%		99.5	%
Specialty Lines		60.6	%		60.3	%		86.5	%		87.0	%
Total P&C Operations		64.5	%		65.3	%		93.5	%		94.9	%

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Property & Casualty Calendar Year Loss and Combined Ratios Before Catastrophes
	Loss Ratios						Combined Ratios
	Three Months			Nine Months			Three Months			Nine Months
	Ended September			Ended September			Ended September			Ended September
	30, 2005			30, 2005			30, 2005			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 Gross Accident Year Loss Ratios
	Accident Year 2006			Accident Year 2005			Accident Year 2005
	Evaluated at			Evaluated at			Evaluated at
	September 30, 2006			December 31, 2005			September 30, 2006
Standard Lines		65.2	%		76.4	%		75.2	%
Specialty Lines		60.6	%		63.7	%		61.3	%
Total P&C Operations		63.6	%		72.2	%		70.6	%

Property & Casualty Net Accident Year Loss Ratios
	Accident Year 2006						Accident Year 2005
	Evaluated at			Accident Year 2005			Evaluated at
	September 30, 2006			Evaluated at			September 30, 2006
	(a)			December 31, 2005			(a)
Standard Lines		67.9	%		76.3	%		75.3	%
Specialty Lines		60.4	%		63.4	%		60.9	%
Total P&C Operations		65.1	%		71.6	%		70.0	%

(a) The 2006 net accident year loss ratio evaluated at September 30, 2006 includes 1 point, 0 point, and 1 point related to catastrophe losses for Standard Lines, Specialty Lines, and P&C Operations. The 2005 net accident year loss ratio evaluated at September 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 $74 million for the third quarter of 2006 as compared with the same period in 2005. Standard Lines retention improved 3 points to 81% while rates, on average, increased 1% during the third quarter of 2006.

• Net operating income increased $307 million for the third quarter of 2006 as compared with the same period in 2005. This increase was primarily driven by significantly reduced catastrophe impacts in 2006. The catastrophe impacts decreased $268 million after-tax in 2006 as compared with the same period in 2005. Also favorably impacting net operating results were an increase in net investment income and favorable net prior year development of $8 million in 2006 as compared to unfavorable net prior year development of $17 million in 2005.

• Net results for the third quarter of 2006 increased $285 million as compared with the same period in 2005. This improvement was attributable to increased net operating income, partially offset by lower net realized investment gains.

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

• Net written premiums increased $26 million for the third quarter of 2006 as compared with the same period in 2005. Specialty Lines retention improved 2 points to 86% while rates, on average, decreased 1% during the third quarter of 2006.

• Net operating income increased $11 million for the third quarter of 2006 as compared with the same period in 2005. This increase was primarily driven by an increase in net investment income and reduced catastrophe impacts in 2006. The catastrophe impacts decreased $13 million after-tax in 2006 as compared with the same period in 2005. These favorable impacts were partially offset by less favorable current accident year results.

• Net income increased $5 million for the third quarter of 2006 as compared with the same period in 2005. This increase was attributable to increased net operating income, partially offset by reduced realized investment gains.

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.

• Net results for the third quarter of 2006 increased $14 million as compared with the same period in 2005. The 2005 net results included a $17 million provision for estimated indemnification liabilities related to the sold individual life business. Offsetting this improvement were increased net realized investment losses in the third quarter of 2006.

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 income for the third quarter of 2006 decreased $2 million as compared with the same period in 2005. The decrease in net income was primarily due to the discontinuation of royalty income related to a sold business and increased interest costs related to the issuance of $750 million of senior notes in August 2006. These decreases were substantially offset by increased net investment income and improved realized investment results.

Net Investment Income

Pretax net investment income for the third quarter of 2006 increased $100 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 contributed to the increase in asset base and the decrease in interest expense. These increases were partially offset by a decrease in investment income from limited partnerships and the trading portfolio. The decrease in trading portfolio income was largely offset by a corresponding decrease in the policyholders’ funds reserves supported by the trading portfolio.

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About the Company

CNA is the country’s seventh largest commercial insurance writer and the 13^th largest property and casualty company. CNA’s insurance products include standard commercial lines, specialty lines, surety, marine and other property and casualty coverages. CNA’s services include risk management, information services, underwriting, risk control and claims administration. For more information, please visit CNA at www.cna.com. CNA is a registered 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) 231-9012 or for international callers (719) 457-2617. 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 7, 2006. The replay can also be accessed by dialing (888) 203-1112 or for international callers (719) 457-0820 and using passcode 8742359. Financial supplement information related to the third quarter results is available on the investor relations pages of the CNA Website or by contacting David Adams at (312) 822-2183.

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 insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums. The dividend ratio is the ratio of policyholders’ dividends incurred to net earned premiums. The combined ratio is the sum of the loss, expense and dividend ratios.

This press release may also 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, 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

September 30, 2006

	Page
Supplemental Financial Information	i-iii
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 (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 — Net Accident Year 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
Asbestos Summary by Policyholder Category	17

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 of the Consolidated Financial Statements within the 2005 Form 10-K 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 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 insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums. The dividend ratio is the ratio of policyholders’ dividends incurred to net earned premiums. The combined ratio is the sum of the loss, expense and dividend ratios.

• Limited partnerships (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.

• Certain immaterial differences are due to rounding.

• 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 nine months ended September 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 nine months ended September 30, 2005 has been restated to reflect the following:

• 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.

• 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.

• 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.

• 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 nine months ended September 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

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 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

PERIOD ENDED SEPTEMBER 30	Three Months									Nine Months
							Fav /									Fav /
							(Unfav)									(Unfav)
(In millions)	2006			2005			% Change			2006			2005			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,943		$	1,873			4	%	$	5,704		$	5,684			—	%
Net investment income		600			500			20			1,722			1,345			28
Realized investment gains (losses), net of participating policyholders’ and minority interests		21			67			(69	)		(68	)		74			(192	)
Other revenues		56			80			(30	)		175			351			(50	)
Total revenues		2,620			2,520			4			7,533			7,454			1
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,522			1,871			19			4,446			4,886			9
Amortization of deferred acquisition costs		390			416			6			1,132			1,168			3
Other operating expenses		224			241			7			723			766			6
Restructuring and other related charges		—			—			N/M			(13	)		—			N/M
Interest		35			29			(21	)		93			96			3
Total claims, benefits and expenses		2,171			2,557			15			6,381			6,916			8
Income (loss) before income tax and minority interest		449			(37	)		N/M			1,152			538			114
Income tax (expense) benefit		(131	)		51			N/M			(339	)		(53	)		N/M
Minority interest		(13	)		(11	)		(18	)		(32	)		(16	)		(100	)
Income from continuing operations		305			3			N/M			781			469			67
Income (loss) from discontinued operations, net of tax		6			3			100			(2	)		12			(117	)
Net income	$	311		$	6			N/M	%	$	779		$	481			62	%

1

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

PERIOD ENDED SEPTEMBER 30	Three Months								Nine 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 (loss)	$	283	$	(39	)		N/M	%	$	822		$	425		93	%
Net realized investment gains (losses), net of participating policyholders’ and minority interests		22		42			(48	)		(41	)		44		(193	)
Income from continuing operations		305		3			N/M			781			469		67
Income (loss) from discontinued operations, net of tax		6		3			100			(2	)		12		(117	)
Net income	$	311	$	6			N/M	%	$	779		$	481		62	%
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE
Income (loss) from continuing operations	$	1.13	$	(0.06	)		N/M	%	$	2.84		$	1.63		74	%
Income (loss) from discontinued operations		0.02		0.02			—			(0.01	)		0.05		(120	)
Basic and diluted earnings (losses) per share available to common stockholders (1)	$	1.15	$	(0.04	)		N/M	%	$	2.83		$	1.68		68	%
Weighted average outstanding common stock and common stock equivalents
Basic		265.0		256.0						259.0			256.0
Diluted		265.2		256.0						259.2			256.0

(1) The three and nine months ended September 30, 2006 per share results available to common stockholders are reduced by $8 million and $46 million, or $0.02 per share and $0.17 per share, of undeclared but accumulated preferred stock dividends. 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 but accumulated preferred stock dividends. The undeclared but accumulated preferred stock dividends relate to the Company’s Series H Cumulative Preferred Stock which was repurchased from Loews on August 8, 2006.

2

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

(In millions, except per share data)	September 30, 2006		December 31, 2005
Total assets	$	60,577	$	58,786
Insurance reserves		41,613		42,436
Debt		2,405		1,690
Total liabilities		50,903		49,545
Minority interest		325		291
Accumulated other comprehensive income		447		359
Total stockholders’ equity		9,329		8,950
Book value per common share (1)	$	34.43	$	31.26
Book value per common share excluding unrealized gain or loss on fixed maturity securities (1)	$	32.77	$	29.69
Outstanding shares of common stock (in millions of shares)		270.9		256.0

THREE MONTHS ENDED
SEPTEMBER 30
(In millions)	2006			2005
Net cash flows provided by operating activities (2)	$	860		$	507
Net cash flows used by investing activities		(987	)		(395	)
Net cash flows provided (used) by financing activities		131			(101	)
Net cash flows	$	4		$	11

NINE MONTHS ENDED
SEPTEMBER 30
(In millions)	2006			2005
Net cash flows provided by operating activities (2)	$	1,783		$	1,460
Net cash flows used by investing activities		(1,490	)		(796	)
Net cash flows used by financing activities		(282	)		(667	)
Net cash flows	$	11		$	(3	)

(1)	Book value per common share as of September 30, 2006 and December 31, 2005 excludes $0 million and $750 million of preferred stock (Series H) and $243 million and $197 million of undeclared but accumulated dividends. The undeclared but accumulated preferred stock dividends relate to the Company’s Series H Cumulative Preferred Stock which was repurchased from Loews on August 8, 2006.
(2)	Operating cash flows for the three and nine months ended September 30, 2006 include $4 million and $0 million related to discontinued operations. Operating cash flows for the three and nine months ended September 30, 2005 include $(9) million and $(33) 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 September 30, 2006
Gross	$	14,822	$	5,507	$	20,329
Ceded		3,221		1,342		4,563
Net	$	11,601	$	4,165	$	15,766
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 & Other
(In millions)	Non-Core		Non-Core		Total Operations
As of September 30, 2006
Gross	$	3,269	$	6,543	$	30,141
Ceded		1,398		3,130		9,091
Net	$	1,871	$	3,413	$	21,050
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 SEPTEMBER 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	$	14,823		$	5,395		$	20,218		$	3,185		$	6,774	$	30,177
Ceded		3,698			1,411			5,109			1,333			3,554		9,996
Net		11,125			3,984			15,109			1,852			3,220		20,181
Net incurred claim & claim adjustment expenses		769			397			1,166			114			32		1,312
Net claim & claim adjustment expense payments (1)		(293	)		(216	)		(509	)		(95	)		161		(443	)
Claim & claim adjustment expense reserves, end of period
Net		11,601			4,165			15,766			1,871			3,413		21,050
Ceded		3,221			1,342			4,563			1,398			3,130		9,091
Gross	$	14,822		$	5,507		$	20,329		$	3,269		$	6,543	$	30,141

NINE MONTHS ENDED SEPTEMBER 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		2,279			1,157			3,436			324			99			3,859
Net claim & claim adjustment expense payments (1)		(1,924	)		(786	)		(2,710	)		(290	)		(142	)		(3,142	)
Claim & claim adjustment expense reserves, end of period
Net		11,601			4,165			15,766			1,871			3,413			21,050
Ceded		3,221			1,342			4,563			1,398			3,130			9,091
Gross	$	14,822		$	5,507		$	20,329		$	3,269		$	6,543		$	30,141

(1) Net claim & claim adjustment expense payments for the three and nine months ended September 30, 2006 include a $761 million reduction related to the commutation of the CCC Cover.

5

CNA FINANCIAL CORPORATION
Financial Supplement
Investments by Segment Aggregation

	September 30, 2006					June 30, 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	$	20,304		$	20,350	$	20,401		$	20,067	$	16,988		$	16,972
Fixed maturities — tax exempt		2,651			2,701		3,730			3,691		7,579			7,631
Equities		227			399		325			500		221			374
Short-term investments		8,177			8,178		5,263			5,262		3,715			3,714
Limited partnership investments		1,485			1,485		1,414			1,414		1,223			1,223
Other (e.g., Real Estate)		30			29		28			26		34			32
Total investments	$	32,874		$	33,142	$	31,161		$	30,960	$	29,760		$	29,946
Net receivable/(payable)	$	81				$	(267	)			$	266
Securities lending collateral		(2,377	)				(1,326	)				(742	)
Life & Group Non-Core:
Fixed maturities — taxable	$	6,923		$	7,363	$	6,603		$	6,731	$	6,574		$	7,053
Fixed maturities — tax exempt		1,579			1,736		1,557			1,600		1,475			1,578
Equities		168			177		421			424		290			307
Short-term investments		283			282		359			359		523			524
Limited partnership investments		238			238		257			257		286			286
Other (e.g., Mortgage & Policy Loans)		1			1		1			1		1			1
Total investments	$	9,192		$	9,797	$	9,198		$	9,372	$	9,149		$	9,749
Net receivable/(payable)	$	34				$	(52	)			$	84
Securities lending collateral		(8	)				(15	)				(25	)
Total investments	$	42,066		$	42,939	$	40,359		$	40,332	$	38,909		$	39,695
Total net receivable/(payable)	$	115				$	(319	)			$	350
Total securities lending collateral		(2,385	)				(1,341	)				(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 $91 million, $97 million and $86 million as of September 30, 2006, June 30, 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
SEPTEMBER 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2006			2005			% Change			2006			2005			% Change			2006			2005			% Change
Gross written premiums	$	1,586		$	1,472			8	%	$	785		$	762			3	%	$	2,371		$	2,234			6	%
Net written premiums		1,121			1,047			7			675			649			4			1,796			1,696			6
Net earned premiums		1,128			1,080			4			654			628			4			1,782			1,708			4
Net investment income		239			186			28			101			74			36			340			260			31
Other revenues		16			26			(38	)		38			34			12			54			60			(10	)
Total operating revenues		1,383			1,292			7			793			736			8			2,176			2,028			7
Claims, benefits and expenses:
Net incurred claims and benefits		776			1,148			32			397			366			(8	)		1,173			1,514			23
Policyholders’ dividends		4			4			—			1			1			—			5			5			—
Amortization of deferred acquisition costs		249			281			11			137			128			(7	)		386			409			6
Other insurance related expenses		89			76			(17	)		31			45			31			120			121			1
Other expenses		20			23			13			35			28			(25	)		55			51			(8	)
Total claims, benefits and expenses		1,138			1,532			26			601			568			(6	)		1,739			2,100			17
Operating income (loss) before income tax and minority interest		245			(240	)		N/M			192			168			14			437			(72	)		N/M
Income tax (expense) benefit on operating income (loss)		(78	)		100			(178	)		(64	)		(53	)		(21	)		(142	)		47			N/M
Minority interest		(4	)		(4	)		—			(9	)		(7	)		(29	)		(13	)		(11	)		(18	)
Net operating income (loss) from continuing operations		163			(144	)		N/M			119			108			10			282			(36	)		N/M
Realized investment gains, net of participating policyholders’ and minority interests		18			51			(65	)		6			16			(63	)		24			67			(64	)
Income tax expense on realized investment gains		(7	)		(18	)		61			(1	)		(5	)		80			(8	)		(23	)		65
Net income (loss) from continuing operations	$	174		$	(111	)		N/M	%	$	124		$	119			4	%	$	298		$	8			N/M	%
Financial Ratios
Loss & LAE		68.7	%		106.3	%					60.7	%		58.4	%					65.8	%		88.7	%
Acquisition expense		17.0			20.4						17.3			20.9						17.1			20.6
Underwriting expense		13.1			12.6						8.5			6.4						11.3			10.4
Dividends		0.4			0.3						0.1			0.2						0.3			0.2
Expense ratio, including dividends		30.5			33.3						25.9			27.5						28.7			31.2
Combined ratio		99.2	%		139.6	%					86.6	%		85.9	%					94.5	%		119.9	%

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
SEPTEMBER 30													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2006			2005			2006			2005			% Change			2006			2005			% Change			2006			2005			% Change
Net earned premiums	$	1,782		$	1,708		$	160		$	169			(5	)%	$	1		$	(4	)		125	%	$	1,943		$	1,873			4	%
Net investment income		340			260			179			179			—			81			61			33			600			500			20
Other revenues		54			60			8			20			(60	)		(6	)		—			N/M			56			80			(30	)
Total operating revenues		2,176			2,028			347			368			(6	)		76			57			33			2,599			2,453			6
Claims, benefits and expenses:
Net incurred claims and benefits		1,173			1,514			314			342			8			31			12			(158	)		1,518			1,868			19
Policyholders’ dividends		5			5			(1	)		(1	)		—			—			(1	)		N/M			4			3			(33	)
Amortization of deferred acquisition costs		386			409			4			5			20			—			2			N/M			390			416			6
Other insurance related expenses		120			121			48			69			30			7			(7	)		(200	)		175			183			4
Other expenses		55			51			14			13			(8	)		15			23			35			84			87			3
Total claims, benefits and expenses		1,739			2,100			379			428			11			53			29			(83	)		2,171			2,557			15
Operating income (loss) before income tax and minority interest		437			(72	)		(32	)		(60	)		47			23			28			(18	)		428			(104	)		N/M
Income tax (expense) benefit on operating income (loss)		(142	)		47			17			25			(32	)		(7	)		4			N/M			(132	)		76			N/M
Minority interest		(13	)		(11	)		—			—			N/M			—			—			N/M			(13	)		(11	)		(18	)
Net operating income (loss) from continuing operations		282			(36	)		(15	)		(35	)		57			16			32			(50	)		283			(39	)		N/M
Realized investment gains (losses), net of participating policyholders’ and minority interests		24			67			(10	)		(2	)		N/M			7			2			N/M			21			67			(69	)
Income tax (expense) benefit on realized investment gains (losses)		(8	)		(23	)		3			1			200			6			(3	)		N/M			1			(25	)		104
Net income (loss) from continuing operations	$	298		$	8		$	(22	)	$	(36	)		39	%	$	29		$	31			(6	)%	$	305		$	3			N/M	%
	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	$	2,371		$	2,234		$	156		$	218			(28	)%	$	9		$	302			(97	)%	$	2,536		$	2,754			(8	)%
Net written premiums		1,796			1,696			152			164			(7	)		3			(2	)		N/M			1,951			1,858			5
Net earned premiums		1,782			1,708			158			167			(5	)		2			(3	)		167			1,942			1,872			4
Financial Ratios
Loss & LAE		65.8	%		88.7	%		N/M	%		N/M	%					N/M	%		N/M	%					74.1	%		94.7	%
Acquisition expense		17.1			20.6			N/M			N/M						N/M			N/M						16.6			20.1
Underwriting expense		11.3			10.4			N/M			N/M						N/M			N/M						12.4			11.1
Dividends		0.3			0.2			N/M			N/M						N/M			N/M						0.3			0.2
Expense ratio, including dividends		28.7			31.2			N/M			N/M						N/M			N/M						29.3			31.4
Combined ratio		94.5	%		119.9	%		N/M	%		N/M	%					N/M	%		N/M	%					103.4	%		126.1	%

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)	2006			2005			% Change			2006			2005			% Change			2006			2005			% Change
Gross written premiums	$	4,726		$	4,531			4	%	$	2,319		$	2,219			5	%	$	7,045		$	6,750			4	%
Net written premiums		3,394			3,352			1			1,948			1,838			6			5,342			5,190			3
Net earned premiums		3,310			3,333			(1	)		1,915			1,831			5			5,225			5,164			1
Net investment income		705			540			31			287			197			46			992			737			35
Other revenues		49			74			(34	)		112			94			19			161			168			(4	)
Total operating revenues		4,064			3,947			3			2,314			2,122			9			6,378			6,069			5
Claims, benefits and expenses:
Net incurred claims and benefits		2,297			2,750			16			1,157			1,158			—			3,454			3,908			12
Policyholders’ dividends		12			16			25			3			3			—			15			19			21
Amortization of deferred acquisition costs		725			757			4			395			390			(1	)		1,120			1,147			2
Other insurance related expenses		293			318			8			109			93			(17	)		402			411			2
Restructuring and other related charges		—			—			N/M			—			—			N/M			—			—			N/M
Other expenses		58			82			29			103			81			(27	)		161			163			1
Total claims, benefits and expenses		3,385			3,923			14			1,767			1,725			(2	)		5,152			5,648			9
Operating income before income tax and minority interest		679			24			N/M			547			397			38			1,226			421			191
Income tax (expense) benefit on operating income		(207	)		41			N/M			(181	)		(121	)		(50	)		(388	)		(80	)		N/M
Minority interest		(9	)		(8	)		(13	)		(23	)		(8	)		(188	)		(32	)		(16	)		(100	)
Net operating income from continuing operations		463			57			N/M			343			268			28			806			325			148
Realized investment gains (losses), net of participating policyholders’ and minority interests		(6	)		71			(108	)		(4	)		25			(116	)		(10	)		96			(110	)
Income tax (expense) benefit on realized investment gains (losses)		2			(29	)		107			2			(6	)		133			4			(35	)		111
Net income from continuing operations	$	459		$	99			N/M	%	$	341		$	287			19	%	$	800		$	386			107	%
Financial Ratios
Loss & LAE		69.4	%		82.5	%					60.4	%		63.3	%					66.1	%		75.7	%
Acquisition expense		18.2			20.0						18.1			19.7						18.1			19.9
Underwriting expense		12.5			12.2						8.3			6.6						11.0			10.2
Dividends		0.4			0.5						0.1			0.2						0.3			0.4
Expense ratio, including dividends		31.1			32.7						26.5			26.5						29.4			30.5
Combined ratio		100.5	%		115.2	%					86.9	%		89.8	%					95.5	%		106.2	%

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)	2006			2005			2006			2005			% Change			2006			2005			% Change			2006			2005			% Change
Net earned premiums	$	5,225		$	5,164		$	482		$	539			(11	)%	$	(3	)	$	(19	)		84	%	$	5,704		$	5,684			—	%
Net investment income		992			737			504			431			17			226			177			28			1,722			1,345			28
Other revenues		161			168			44			78			(44	)		(30	)		105			(129	)		175			351			(50	)
Total operating revenues		6,378			6,069			1,030			1,048			(2	)		193			263			(27	)		7,601			7,380			3
Claims, benefits and expenses:
Net incurred claims and benefits		3,454			3,908			886			860			(3	)		91			100			9			4,431			4,868			9
Policyholders’ dividends		15			19			—			(1	)		N/M			—			—			N/M			15			18			17
Amortization of deferred acquisition costs		1,120			1,147			12			18			33			—			3			N/M			1,132			1,168			3
Other insurance related expenses		402			411			141			194			27			20			(1	)		N/M			563			604			7
Restructuring and other related charges		—			—			—			—			N/M			(13	)		—			N/M			(13	)		—			N/M
Other expenses		161			163			40			43			7			52			52			—			253			258			2
Total claims, benefits and expenses		5,152			5,648			1,079			1,114			3			150			154			3			6,381			6,916			8
Operating income (loss) before income tax and minority interest		1,226			421			(49	)		(66	)		26			43			109			(61	)		1,220			464			163
Income tax (expense) benefit on operating income (loss)		(388	)		(80	)		36			37			(3	)		(14	)		20			(170	)		(366	)		(23	)		N/M
Minority interest		(32	)		(16	)		—			—			N/M			—			—			N/M			(32	)		(16	)		(100	)
Net operating income (loss) from continuing operations		806			325			(13	)		(29	)		55			29			129			(78	)		822			425			93
Realized investment gains (losses), net of participating policyholders’ and minority interests		(10	)		96			(56	)		(8	)		N/M			(2	)		(14	)		86			(68	)		74			(192	)
Income tax (expense) benefit on realized investment gains (losses)		4			(35	)		19			3			N/M			4			2			100			27			(30	)		190
Net income (loss) from continuing operations	$	800		$	386		$	(50	)	$	(34	)		(47	)%	$	31		$	117			(74	)%	$	781		$	469			67	%
	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	$	7,045		$	6,750		$	558		$	702			(21	)%	$	17		$	854			(98	)%	$	7,620		$	8,306			(8	)%
Net written premiums		5,342			5,190			471			535			(12	)		(4	)		(29	)		86			5,809			5,696			2
Net earned premiums		5,225			5,164			476			531			(10	)		(3	)		(18	)		83			5,698			5,677			—
Financial Ratios
Loss & LAE		66.1	%		75.7	%		N/M	%		N/M	%					N/M	%		N/M	%					74.4	%		82.9	%
Acquisition expense		18.1			19.9			N/M			N/M						N/M			N/M						17.7			19.7
Underwriting expense		11.0			10.2			N/M			N/M						N/M			N/M						11.8			11.4
Dividends		0.3			0.4			N/M			N/M						N/M			N/M						0.3			0.3
Expense ratio, including dividends		29.4			30.5			N/M			N/M						N/M			N/M						29.8			31.4
Combined ratio		95.5	%		106.2	%		N/M	%		N/M	%					N/M	%		N/M	%					104.2	%		114.3	%

10

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

CATASTROPHE LOSSES (PRETAX)							Corporate &
(In millions)	Standard Lines		Specialty Lines		P&C Operations		Other Non-Core	Total
Three months ended September 30, 2006 (1)	$	21	$	1	$	22	$  —	$	22
Nine months ended September 30, 2006 (1)		38		2		40	—		40
Three months ended September 30, 2005 (2)	$	418	$	19	$	437	$  —	$	437
Nine months ended September 30, 2005 (2)		424		19		443	—		443

CATASTROPHE LOSSES (AFTER-TAX)							Corporate &
(In millions)	Standard Lines		Specialty Lines		P&C Operations		Other Non-Core	Total
Three months ended September 30, 2006 (1)	$	14	$	1	$	15	$  —	$	15
Nine months ended September 30, 2006 (1)		25		1		26	—		26
Three months ended September 30, 2005 (2)	$	272	$	12	$	284	$  —	$	284
Nine months ended September 30, 2005 (2)		276		12		288	—		288

(1)

For the three and nine months ended September 30, 2006, the above amounts exclude a release of $3 million pretax ($2 million after-tax) and $8 million pretax ($5 million after-tax) of insurance bad debt related to the third quarter 2005 hurricanes.

(2)

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.

11

CNA FINANCIAL CORPORATION
Financial Supplement
Analysis of Pretax Net Investment Income

(In millions)	Standard Lines
	1Q05			2Q05			3Q05			4Q05			YTD 2005			1Q06			2Q06			3Q06			YTD 2006
Limited partnership income	$	42		$	22		$	38		$	37		$	139		$	38		$	27		$	23		$	88
Interest on funds withheld and other deposits		(18	)		(34	)		(34	)		(19	)		(105	)		(14	)		(22	)		(8	)		(44	)
Income from trading securities		1			—			1			—			2			—			—			—			—
Other investment income		158			183			181			209			731			204			233			224			661
Net investment income	$	183		$	171		$	186		$	227		$	767		$	228		$	238		$	239		$	705

	Specialty Lines
	1Q05			2Q05			3Q05			4Q05			YTD 2005			1Q06			2Q06			3Q06			YTD 2006
Limited partnership income	$	13		$	7		$	12		$	13		$	45		$	13		$	10		$	8		$	31
Interest on funds withheld and other deposits		(12	)		(1	)		(2	)		(2	)		(17	)		(2	)		(1	)		(1	)		(4	)
Income from trading securities		—			—			—			—			—			—			—			—			—
Other investment income		55			61			64			73			253			76			90			94			260
Net investment income	$	56		$	67		$	74		$	84		$	281		$	87		$	99		$	101		$	287

	P&C Operations
	1Q05			2Q05			3Q05			4Q05			YTD 2005			1Q06			2Q06			3Q06			YTD 2006
Limited partnership income	$	55		$	29		$	50		$	50		$	184		$	51		$	37		$	31		$	119
Interest on funds withheld and other deposits		(30	)		(35	)		(36	)		(21	)		(122	)		(16	)		(23	)		(9	)		(48	)
Income from trading securities		1			—			1			—			2			—			—			—			—
Other investment income		213			244			245			282			984			280			323			318			921
Net investment income	$	239		$	238		$	260		$	311		$	1,048		$	315		$	337		$	340		$	992

	Life & Group Non-Core
	1Q05			2Q05		3Q05		4Q05		YTD 2005		1Q06		2Q06			3Q06		YTD 2006
Limited partnership income	$	9		$	1	$	8	$	4	$	22	$	10	$	8		$	6	$	24
Interest on funds withheld and other deposits		—			—		—		—		—		—		—			—		—
Income from trading securities		(31	)		14		40		22		45		42		(9	)		30		63
Other investment income		128			131		131		136		526		135		139			143		417
Net investment income	$	106		$	146	$	179	$	162	$	593	$	187	$	138		$	179	$	504

	Corporate & Other Non-Core
	1Q05			2Q05			3Q05			4Q05			YTD 2005			1Q06			2Q06			3Q06			YTD 2006
Limited partnership income	$	15		$	8		$	14		$	11		$	48		$	13		$	8		$	9		$	30
Interest on funds withheld and other deposits		(9	)		(15	)		(14	)		(6	)		(44	)		(9	)		(7	)		(1	)		(17	)
Income from trading securities		—			—			—			—			—			—			—			—			—
Other investment income		55			62			61			69			247			64			76			73			213
Net investment income	$	61		$	55		$	61		$	74		$	251		$	68		$	77		$	81		$	226

	Total Operations
	1Q05			2Q05			3Q05			4Q05			YTD 2005			1Q06			2Q06			3Q06			YTD 2006
Limited partnership income	$	79		$	38		$	72		$	65		$	254		$	74		$	53		$	46		$	173
Interest on funds withheld and other deposits		(39	)		(50	)		(50	)		(27	)		(166	)		(25	)		(30	)		(10	)		(65	)
Income from trading securities		(30	)		14			41			22			47			42			(9	)		30			63
Other investment income		396			437			437			487			1,757			479			538			534			1,551
Net investment income	$	406		$	439		$	500		$	547		$	1,892		$	570		$	552		$	600		$	1,722

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)	2006			2005			% Change			2006			2005			% Change
Property & Casualty Companies
Gross written premiums	$	2,413		$	2,658			(9	)%	$	7,219		$	7,948			(9	)%
Net written premiums		1,835			1,765			4			5,456			5,376			1
Net earned premiums		1,645			1,602			3			4,819			4,908			(2	)
Claim and claim adjustment expenses		1,234			1,576			22			3,652			4,137			12
Acquisition expenses		314			298			(5	)		944			926			(2	)
Underwriting expenses		225			211			(7	)		682			711			4
Policyholders’ dividends		2			16			88			11			28			61
Underwriting loss		(130	)		(499	)		74			(470	)		(894	)		47
Net investment income (1)		466			387			20			1,363			1,635			(17	)
Other revenues (expenses)		(10	)		(70	)		86			(88	)		(25	)		N/M
Income tax (expense) benefit		(56	)		160			(135	)		(223	)		83			N/M
Net realized gains		81			3			N/M			32			50			(36	)
Net income (loss)	$	351		$	(19	)		N/M	%	$	614		$	849			(28	)%
Financial Ratios
Loss and LAE		75.0	%		98.4	%					75.8	%		84.3	%
Acquisition expense		17.1			16.9						17.3			17.2
Underwriting expense		12.3			11.9						14.2			13.2
Policyholders’ dividends		0.1			1.0						0.2			0.6
Expense ratio		29.5			29.8						31.7			31.0
Combined ratio		104.5	%		128.2	%					107.5	%		115.3	%
Life Companies
Earned premium	$	2		$	1					$	7		$	7

SUPPLEMENTAL STATUTORY DATA

	(Preliminary)
(In millions)	September 30, 2006		December 31, 2005
Property & Casualty Companies
Statutory surplus (2)	$	7,827	$	6,940
Life Companies
Statutory surplus	$	701	$	627

(1)	The nine months ended September 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
	09/30/06			12/31/05			09/30/06
Gross Accident Year		65.2	%		76.4	%		75.2	%
Impact of Reinsurance		2.7			(0.1	)		0.1
Net Accident Year (1)		67.9			76.3			75.3	%
Impact of Significant Commutations		—			6.2
Impact of Corporate Covers		—			0.7
Impact of Development & Change in Allowance for Uncollectible Reinsurance		1.5			4.3
Net Calendar Year		69.4	%		87.5	%

	Specialty Lines
	2006 YTD			2005 FY			2005 FY
	Evaluated at			Evaluated at			Evaluated at
	09/30/06			12/31/05			09/30/06
Gross Accident Year		60.6	%		63.7	%		61.3	%
Impact of Reinsurance		(0.2	)		(0.3	)		(0.4	)
Net Accident Year (1)		60.4			63.4			60.9	%
Impact of Significant Commutations		—			0.9
Impact of Corporate Covers		—			(0.3	)
Impact of Development & Change in Allowance for Uncollectible Reinsurance		—			1.3
Net Calendar Year		60.4	%		65.3	%

	P&C Operations
	2006 YTD			2005 FY			2005 FY
	Evaluated at			Evaluated at			Evaluated at
	09/30/06			12/31/05			09/30/06
Gross Accident Year		63.6	%		72.2	%		70.6	%
Impact of Reinsurance		1.5			(0.6	)		(0.6	)
Net Accident Year (1)		65.1			71.6			70.0	%
Impact of Significant Commutations		—			4.3
Impact of Corporate Covers		—			0.4
Impact of Development & Change in Allowance for Uncollectible Reinsurance		1.0			3.2
Net Calendar Year		66.1	%		79.5	%

(1) The 2006 net accident year loss ratio evaluated at September 30, 2006 includes 1 point, 0 points, and 1 point related to catastrophe losses for Standard Lines, Specialty Lines, and P&C Operations. The 2005 net accident year loss ratio evaluated at September 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
Impact of Catastrophes

THREE MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
SEPTEMBER 30, 2006
	2006 Results									2006 Results									2006 Results
	Before									Before									Before
	Impact of			Impact of						Impact of			Impact of						Impact of			Impact of
(In millions)	Catastrophes			Catastrophes			2006 Results			Catastrophes			Catastrophes			2006 Results			Catastrophes			Catastrophes			2006 Results
Net earned premiums	$	1,128		$	—		$	1,128		$	654		$	—		$	654		$	1,782		$	—		$	1,782
Net investment income		239			—			239			101			—			101			340			—			340
Other revenues		16			—			16			38			—			38			54			—			54
Total operating revenues		1,383			—			1,383			793			—			793			2,176			—			2,176
Claims, benefits and expenses:
Net incurred claims and benefits		755			21			776			396			1			397			1,151			22			1,173
Policyholders’ dividends		4			—			4			1			—			1			5			—			5
Amortization of deferred acquisition costs		249			—			249			137			—			137			386			—			386
Other insurance related expenses		92			(3	)		89			31			—			31			123			(3	)		120
Other operating expenses		20			—			20			35			—			35			55			—			55
Total claims, benefits and expenses		1,120			18			1,138			600			1			601			1,720			19			1,739
Operating income (loss) before income tax and minority interest		263			(18	)		245			193			(1	)		192			456			(19	)		437
Income tax (expense) benefit on operating income		(84	)		6			(78	)		(64	)		—			(64	)		(148	)		6			(142	)
Minority interest		(4	)		—			(4	)		(9	)		—			(9	)		(13	)		—			(13	)
Net operating income (loss) from continuing operations		175			(12	)		163			120			(1	)		119			295			(13	)		282
Realized investment gains (losses), net of participating policyholders’ and minority interests		18			—			18			6			—			6			24			—			24
Income tax (expense) benefit on realized investment gains (losses)		(7	)		—			(7	)		(1	)		—			(1	)		(8	)		—			(8	)
Net income (loss) from continuing operations	$	186		$	(12	)	$	174		$	125		$	(1	)	$	124		$	311		$	(13	)	$	298
Financial Ratios
Loss & LAE		66.8	%					68.7	%		60.6	%					60.7	%		64.5	%					65.8	%
Acquisition expense		17.2						17.0			17.3						17.3			17.4						17.1
Underwriting expense		13.1						13.1			8.5						8.5			11.3						11.3
Dividends		0.4						0.4			0.1						0.1			0.3						0.3
Expense ratio, including dividends		30.7						30.5			25.9						25.9			29.0						28.7
Combined ratio		97.5	%					99.2	%		86.5	%					86.6	%		93.5	%					94.5	%

THREE MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
SEPTEMBER 30, 2005
	2005 Results									2005 Results									2005 Results
	Before									Before									Before
	Impact of			Impact of						Impact of			Impact of						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) from continuing operations		136			(280	)		(144	)		122			(14	)		108			258			(294	)		(36	)
Realized investment gains (losses), net of participating policyholders’ and minority interests		51			—			51			16			—			16			67			—			67
Income tax (expense) benefit on realized investment gains (losses)		(18	)		—			(18	)		(5	)		—			(5	)		(23	)		—			(23	)
Net income (loss) from continuing operations	$	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	%

15

CNA FINANCIAL CORPORATION
Financial Supplement
Impact of Catastrophes

NINE MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
SEPTEMBER 30, 2006
	2006 Results									2006 Results									2006 Results
	Before									Before									Before
	Impact of			Impact of						Impact of			Impact of						Impact of			Impact of
(In millions)	Catastrophes			Catastrophes			2006 Results			Catastrophes			Catastrophes			2006 Results			Catastrophes			Catastrophes			2006 Results
Net earned premiums	$	3,310		$	—		$	3,310		$	1,915		$	—		$	1,915		$	5,225		$	—		$	5,225
Net investment income		705			—			705			287			—			287			992			—			992
Other revenues		49			—			49			112			—			112			161			—			161
Total operating revenues		4,064			—			4,064			2,314			—			2,314			6,378			—			6,378
Claims, benefits and expenses:
Net incurred claims and benefits		2,259			38			2,297			1,155			2			1,157			3,414			40			3,454
Policyholders’ dividends		12			—			12			3			—			3			15			—			15
Amortization of deferred acquisition costs		725			—			725			395			—			395			1,120			—			1,120
Other insurance related expenses		298			(5	)		293			112			(3	)		109			410			(8	)		402
Other operating expenses		58			—			58			103			—			103			161			—			161
Total claims, benefits and expenses		3,352			33			3,385			1,768			(1	)		1,767			5,120			32			5,152
Operating income (loss) before income tax and minority interest		712			(33	)		679			546			1			547			1,258			(32	)		1,226
Income tax (expense) benefit on operating income (loss)		(219	)		12			(207	)		(181	)		—			(181	)		(400	)		12			(388	)
Minority interest		(9	)		—			(9	)		(23	)		—			(23	)		(32	)		—			(32	)
Net operating income (loss) from continuing operations		484			(21	)		463			342			1			343			826			(20	)		806
Realized investment gains (losses), net of participating policyholders’ and minority interests		(6	)		—			(6	)		(4	)		—			(4	)		(10	)		—			(10	)
Income tax (expense) benefit on realized investment gains (losses)		2			—			2			2			—			2			4			—			4
Net income (loss) from continuing operations	$	480		$	(21	)	$	459		$	340		$	1		$	341		$	820		$	(20	)	$	800
Financial Ratios
Loss & LAE		68.2	%					69.4	%		60.3	%					60.4	%		65.3	%					66.1	%
Acquisition expense		18.4						18.2			18.3						18.1			18.3						18.1
Underwriting expense		12.5						12.5			8.3						8.3			11.0						11.0
Dividends		0.4						0.4			0.1						0.1			0.3						0.3
Expense ratio, including dividends		31.3						31.1			26.7						26.5			29.6						29.4
Combined ratio		99.5	%					100.5	%		87.0	%					86.9	%		94.9	%					95.5	%
NINE MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
SEPTEMBER 30, 2005
	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) from continuing operations		340			(283	)		57			282			(14	)		268			622			(297	)		325
Realized investment gains (losses), net of participating policyholders’ and minority interests		71			—			71			25			—			25			96			—			96
Income tax (expense) benefit on realized investment gains (losses)		(29	)		—			(29	)		(6	)		—			(6	)		(35	)		—			(35	)
Net income (loss) from continuing operations	$	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	%

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CNA FINANCIAL CORPORATION
Financial Supplement
Asbestos Summary by Policyholder Category

SEPTEMBER 30, 2006			Net Paid			Net Asbestos		Percent of
	Number of		Losses in 2006			Reserves		Asbestos Net
	Policyholders		(In millions)			(In millions)		Reserves
Policyholders with Settlement Agreements
Structured Settlements		15	$	33		$	151		10	%
Wellington		3		1			14		1
Coverage in Place		37		(12	)		90		6
Fibreboard		1		—			54		4
Total with Settlement Agreements		56		22			309		21
Other Policyholders with Active Accounts
Large Asbestos Accounts		209		36			246		16
Small Asbestos Accounts		1,096		14			84		6
Total Other Policyholders		1,305		50			330		22
Assumed Reinsurance & Pools				4			143		10
Unassigned IBNR (1)				—			698		47
Total		1,361	$	76		$	1,480		100	%

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

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