8-K/A

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

Amendment No. 1

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

Date of Report (Date of earliest event reported) February 7, 2007

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))

TABLE OF CONTENTS

	ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
	ITEM 5.02(d). DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.
	ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
SIGNATURES
Press Release
Financial Supplement

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 12, 2007, the Registrant issued a press release and posted a financial supplement providing information on its results of operations for the fourth quarter and year-ended 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 this Item 2.02 and, except as otherwise provided below, 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, except as otherwise provided below, 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 5.02(d). DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.

The information contained in Exhibit No. 99.1 under the subheading “Election of Jose Montemayor as Director” is hereby incorporated by reference into this Item 5.02(d).

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits:

Exhibit No.	Description
99.1	CNA Financial Corporation press release, issued February 12, 2007, providing information on the fourth quarter and year-ended 2006 results of operations.
99.2	CNA Financial Corporation financial supplement, posted February 12, 2007, providing supplemental financial information on the fourth quarter and year-ended 2006.

Page 2 of 3

SIGNATURES

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

CNA FINANCIAL CORPORATION (Registrant)
/s/ D. Craig Mense
(Signature)
By:	D. Craig Mense
	Its: Executive Vice President and       Chief Financial Officer

Dated: February 15, 2007

Page 3 of 3

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
4th QUARTER AND YEAR-END 2006 RESULTS

INSURER ALSO ANNOUNCES ELECTION OF JOSE MONTEMAYOR AS DIRECTOR

CHICAGO, February 12, 2007 — CNA Financial Corporation (NYSE: CNA) today announced fourth quarter and year-end 2006 results, which included the following items:

• Net operating income for the fourth quarter of 2006 of $248 million.

• Net income for the fourth quarter of 2006 of $329 million, or $1.22 per diluted share.

• Net operating income and net income for the full-year 2006 of $1.1 billion.

• Property & Casualty Operations combined ratio for the fourth quarter and full-year 2006 of 99.0% and 96.4%.

• Net operating return on equity for the fourth quarter and full-year 2006 of 11.0% and 12.0%.

• Book value per common share of $36.03 at December 31, 2006, as compared to $31.26 at December 31, 2005.

	Results for the Three						Results for the Year
	Months Ended December 31						Ended December 31
($ millions)	2006			2005			2006			2005
Net operating income (loss) (a)	$	248		$	(172	)	$	1,070		$	253
Net realized investment gains (losses)		108			(54	)		67			(10	)
Net income (loss) from continuing operations		356			(226	)		1,137			243
Net (loss) income from discontinued operations		(27	)		9			(29	)		21
Net income (loss)	$	329		$	(217	)	$	1,108		$	264

(a) Management utilizes the net operating income financial measure to monitor the Company’s operations. Please refer to Note O of the Condensed Consolidated Financial Statements within the September 30, 2006 Form 10-Q for further discussion of this measure.

Page 1 of 9

Diluted Per Share Results Available to Common Stockholders

	Results for the Three Months						Results for the Year Ended
	Ended December 31						December 31
	2006			2005			2006			2005
Net income (loss) from continuing operations (a)	$	1.32		$	(0.95	)	$	4.16		$	0.68
Net (loss) income from discontinued operations		(0.10	)		0.03			(0.11	)		0.08
Net income (loss)	$	1.22		$	(0.92	)	$	4.05		$	0.76

(a) The year ended December 31, 2006 per share results available to common stockholders are reduced by $46 million, or $0.17 per share, of undeclared preferred stock dividends. The three months and year ended December 31, 2005 per share results available to common stockholders are reduced by $18 million and $70 million, or $0.07 per share and $0.27 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 Corporation on August 8, 2006.

Net operating income from continuing operations for the three months ended December 31, 2006 increased $420 million as compared with the same period in 2005. The Property & Casualty Operations produced combined ratios of 95.1% and 101.4% in the fourth quarter of 2006 and 2005, before the 3.9 and 20.0 point impacts of significant commutations and catastrophes. Additionally, net investment income increased significantly.

“This was a very good year for CNA,” said Stephen W. Lilienthal, Chairman and Chief Executive Officer of CNA Financial Corporation. “Earnings were strong and return on equity was much improved. Our core P&C Operations performed very well. Investment income was strong. We continued to strengthen our balance sheet, and our runoff businesses performed in a controlled and orderly fashion. A fourth quarter reinsurance commutation was the last in a series of commutations that effectively eliminated an interest cost drag on earnings that exceeded $300 million just three years ago. Overall, CNA delivered in 2006 and is positioned for consistent, sustainable performance going forward.”

Net income for the three months ended December 31, 2006 increased $546 million as compared with the same period in 2005. This increase was due to the improved net operating results and increased net realized investment results. Net loss from discontinued operations includes a $29 million impairment loss related to the anticipated sale of a portion of the run-off business.

Net operating income from continuing operations for the year ended December 31, 2006 increased $817 million as compared with the same period in 2005. The increase was due to significantly decreased catastrophe impacts in 2006 as compared to 2005, as well as the favorable full-year impacts of the items discussed in the three month comparison above. The Property & Casualty Operations produced a combined ratio of 95.0% and 98.4% for the year ended December 31, 2006 and 2005, before the 1.4 and 11.6 point impacts of significant commutations and catastrophes.

Net income for the year ended December 31, 2006 increased $844 million as compared with the same period in 2005. This increase was primarily due to improved net operating income and net realized investment results, partially offset by unfavorable results from discontinued operations.

Page 2 of 9

Segment Results for the Three Months Ended December 31, 2006

										Corporate
	Standard		Specialty		Total P&C		Life & Group			& Other
($ millions)	Lines		Lines		Ops.		Non-Core			Non-Core			Total
Net operating income (loss)	$	154	$	121	$	275	$	(1	)	$	(26	)	$	248
Net realized investment gains		59		20		79		4			25			108
Net income (loss) from continuing operations	$	213	$	141	$	354	$	3		$	(1	)	$	356

Segment Results for the Three Months Ended December 31, 2005

													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating (loss) income	$	(98	)	$	68		$	(30	)	$	(22	)	$	(120	)	$	(172	)
Net realized investment losses		(33	)		(7	)		(40	)		(14	)		—			(54	)
Net (loss) income from continuing operations	$	(131	)	$	61		$	(70	)	$	(36	)	$	(120	)	$	(226	)

Segment Results for the Year Ended December 31, 2006

										Corporate
	Standard		Specialty		Total P&C		Life & Group			& Other
($ millions)	Lines		Lines		Ops.		Non-Core			Non-Core		Total
Net operating income (loss)	$	617	$	464	$	1,081	$	(14	)	$	3	$	1,070
Net realized investment gains (losses)		55		18		73		(33	)		27		67
Net income (loss) from continuing operations	$	672	$	482	$	1,154	$	(47	)	$	30	$	1,137

Segment Results for the Year Ended December 31, 2005

											Corporate
	Standard			Specialty		Total P&C		Life & Group			& Other
($ millions)	Lines			Lines		Ops.		Non-Core			Non-Core			Total
Net operating (loss) income	$	(41	)	$	336	$	295	$	(51	)	$	9		$	253
Net realized investment gains (losses)		9			12		21		(19	)		(12	)		(10	)
Net (loss) income from continuing operations	$	(32	)	$	348	$	316	$	(70	)	$	(3	)	$	243

Property & Casualty Operations Gross Written Premiums

	Three Months Ended December 31				Year Ended December 31
($ millions)	2006		2005		2006		2005
Standard Lines	$	1,483	$	1,455	$	6,209	$	5,986
Specialty Lines		759		728		3,078		2,947
Total P&C Operations	$	2,242	$	2,183	$	9,287	$	8,933

Page 3 of 9

Property & Casualty Operations Net Written Premiums

	Three Months Ended December 31				Year Ended December 31
($ millions)	2006		2005		2006		2005
Standard Lines	$	1,039	$	1,030	$	4,433	$	4,382
Specialty Lines		648		625		2,596		2,463
Total P&C Operations	$	1,687	$	1,655	$	7,029	$	6,845

Property & Casualty Calendar Year Loss Ratios

	Three Months Ended December 31						Year Ended December 31
	2006			2005			2006			2005
Standard Lines		72.2	%		102.8	%		70.1	%		87.5	%
Specialty Lines		60.8	%		71.2	%		60.5	%		65.3	%
Total P&C Operations		68.0	%		91.0	%		66.6	%		79.5	%
Total P&C Companies (a)		79.6	%		109.0	%		75.7	%		89.4	%

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

Property & Casualty Calendar Year Combined Ratios

	Three Months Ended December 31						Year Ended December 31
	2006			2005			2006			2005
Standard Lines		104.8	%		136.1	%		101.6	%		120.3	%
Specialty Lines		88.9	%		96.9	%		87.4	%		91.6	%
Total P&C Operations		99.0	%		121.4	%		96.4	%		110.0	%
Total P&C Companies (a)		111.3	%		140.8	%		106.0	%		120.9	%

(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 Loss Ratios Before Catastrophes & Significant Commutations

	Three Months Ended December 31						Year Ended December 31
	2006			2005			2006			2005
Standard Lines		66.4	%		73.4	%		67.8	%		70.3	%
Specialty Lines		60.2	%		67.1	%		60.3	%		63.5	%
Total P&C Operations		64.1	%		71.1	%		65.0	%		67.9	%

Property & Casualty Calendar Year Combined Ratios Before Catastrophes & Significant Commutations

	Three Months Ended December 31						Year Ended December 31
	2006			2005			2006			2005
Standard Lines		99.0	%		106.5	%		99.4	%		103.2	%
Specialty Lines		88.3	%		92.8	%		87.3	%		89.7	%
Total P&C Operations		95.1	%		101.4	%		95.0	%		98.4	%

Page 4 of 9

Property & Casualty Gross Accident Year Loss Ratios

	Accident Year 2006			Accident Year 2005			Accident Year 2005
	Evaluated at			Evaluated at			Evaluated at
	December 31, 2006			December 31, 2005			December 31, 2006
Standard Lines		68.0	%		76.4	%		74.8	%
Specialty Lines		60.4	%		63.7	%		60.8	%
Total P&C Operations		65.5	%		72.2	%		70.2	%

Property & Casualty Net Accident Year Loss Ratios

	Accident Year 2006						Accident Year 2005
	Evaluated at			Accident Year 2005			Evaluated at
	December 31, 2006			Evaluated at			December 31, 2006
	(a)			December 31, 2005			(a)
Standard Lines		68.1	%		76.3	%		74.4	%
Specialty Lines		60.3	%		63.4	%		60.4	%
Total P&C Operations		65.2	%		71.6	%		69.3	%

(a) The 2006 net accident year loss ratio evaluated at December 31, 2006 includes 1.3 points, 0.2 points and 0.9 points related to catastrophe losses for Standard Lines, Specialty Lines, and P&C Operations. The 2005 net accident year loss ratio evaluated at December 31, 2006 includes 11.1 points, 1.1 points, and 7.4 points related to catastrophe losses for Standard Lines, Specialty Lines, and P&C Operations.

After-Tax Significant Items
Three Months Ended December 31, 2006

												Corporate
	Standard			Specialty			Total P&C			Life & Group		& Other
($ millions)	Lines			Lines			Ops.			Non-Core		Non-Core		Total
Significant Commutations	$	(31	)	$	—		$	(31	)	$	—	$	—	$	(31	)
Catastrophes		(10	)		(2	)		(12	)		—		—		(12	)
Total	$	(41	)	$	(2	)	$	(43	)	$	—	$	—	$	(43	)

After-Tax Significant Items
Three Months Ended December 31, 2005

												Corporate
	Standard			Specialty			Total P&C			Life & Group		& Other
($ millions)	Lines			Lines			Ops.			Non-Core		Non-Core			Total
Significant Commutations	$	(173	)	$	(15	)	$	(188	)	$	—	$	(35	)	$	(223	)
Catastrophes		(34	)		(3	)		(37	)		—		—			(37	)
Total	$	(207	)	$	(18	)	$	(225	)	$	—	$	(35	)	$	(260	)

After-Tax Significant Items
Year Ended December 31, 2006

												Corporate
	Standard			Specialty			Total P&C			Life & Group		& Other
($ millions)	Lines			Lines			Ops.			Non-Core		Non-Core		Total
Significant Commutations	$	(31	)	$	—		$	(31	)	$	—	$	—	$	(31	)
Catastrophes		(31	)		(1	)		(32	)		—		—		(32	)
Total	$	(62	)	$	(1	)	$	(63	)	$	—	$	—	$	(63	)

Page 5 of 9

After-Tax Significant Items
Year Ended December 31, 2005

												Corporate
	Standard			Specialty			Total P&C			Life & Group		& Other
($ millions)	Lines			Lines			Ops.			Non-Core		Non-Core			Total
Significant Commutations	$	(173	)	$	(15	)	$	(188	)	$	—	$	(71	)	$	(259	)
Catastrophes		(318	)		(16	)		(334	)		—		—			(334	)
Total	$	(491	)	$	(31	)	$	(522	)	$	—	$	(71	)	$	(593	)

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 $9 million for the fourth quarter of 2006 as compared with the same period in 2005. Standard Lines retention remained flat at 81% as compared to the same period in 2005. Rates on average decreased 1% during the fourth quarter of 2006.

• Net operating income increased $252 million for the fourth quarter of 2006 as compared with the same period in 2005. Operating results improved in the fourth quarter of 2006 due to decreased impacts from significant commutations and catastrophes as compared to the same period in 2005. Also favorably impacting net operating results was an increase in net investment income.

• Net results for the fourth quarter of 2006 increased $344 million as compared with the same period in 2005. This improvement was attributable to increases in net operating income and net realized investment results.

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

• Net written premiums increased $23 million for the fourth quarter of 2006 as compared with the same period in 2005. Specialty Lines retention improved 1 point to 88% as compared to the same period in 2005. Rates on average decreased 2% during the fourth quarter of 2006.

• Net operating income increased $53 million for the fourth quarter of 2006 as compared with the same period in 2005. This increase was primarily driven by an increase in net investment income. In addition, the 2005 results were adversely impacted by a loss related to significant commutations.

• Net income increased $80 million for the fourth quarter of 2006 as compared with the same period in 2005. This increase was attributable to increased net operating income and net realized investment results.

Page 6 of 9

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 fourth quarter of 2006 increased $39 million as compared with the same period in 2005. This increase was primarily driven by increases in net investment income and net realized investment results.

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

• Net results for the fourth quarter of 2006 increased $119 million as compared with the same period in 2005. The 2006 results benefited from a decrease in unfavorable net prior year development, including the impact of commutations, and increased net investment income. Net prior year development recorded in 2006 included $63 million pre-tax related to mass tort exposures.

Net Investment Income

Pretax net investment income for the fourth quarter of 2006 increased $143 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 the overall invested asset base resulting from improved cashflow, improved results from limited partnerships and a reduction of interest expense on funds withheld and other deposits. During 2006 and 2005, we commuted several significant finite reinsurance contracts, which contained interest crediting provisions. As a result, interest expense on funds withheld has declined significantly.

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Election of Jose Montemayor as Director

CNA also announced today that Jose Montemayor joined its Board of Directors on February 7, 2007. Mr. Montemayor will serve on the board’s Executive and Finance Committees and also as a financial expert on its Audit Committee.

“We are pleased to welcome Jose to our Board,” said Stephen Lilienthal. “He brings to us a very strong background of industry knowledge and financial expertise, and we look forward to his counsel and support.”

Mr. Montemayor is a Principal of Black Diamond Capital Partners. After retiring from the Air Force in 1993 with the rank of major, he spent twelve years with the Texas Department of Insurance. He served two years as Director of Insurer Services and from 1995 until being appointed Commissioner, he served as Senior Associate Commissioner for the Financial Program, overseeing the licensing, solvency and market conduct of more than 2,000 insurers and health maintenance organizations doing business in Texas. He was Commissioner from 1999 to 2005.

Mr. Montemayor is a 1975 graduate of St. Edward’s University and a 1988 Kellogg Foundation fellow. He received a master of accountancy from Southwest Texas State University in 1996. He is a member of the Texas Society of Public Accountants, the American Institute of Certified Public Accountants and the Society of Financial Examiners.

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 services include risk management, information services, underwriting, risk control and claims administration. For more information, please visit CNA at www.cna.com. CNA is a registered service mark, trade name and domain name of CNA Financial Corporation.

Page 8 of 9

Conference Call and Webcast Information:

A conference call for investors and the professional investment community will be held at 10:00 a.m. EST 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 (888) 515-2235 or for international callers, (719) 457-2601. 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 February 19, 2007. The replay can also be accessed by dialing (888) 203-1112 or for international callers, (719) 457-0820. The replay passcode is 3604225. Financial supplement information related to the fourth 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.

# # #

Page 9 of 9

EX-99.2

Exhibit 99.2

CNA Financial Corporation

Supplemental Financial Information

December 31, 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
December 31, 2006

	Page
Supplemental Financial Information	i—ii
Statements of Operations	1
Components of Net Income (Loss), Per Share Data and Return on Equity	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 (Twelve Months Ended)	9
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Twelve 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 Significant Items	15–18
Asbestos Summary by Policyholder Category	19

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 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 O of the Condensed Consolidated Financial Statements within the September 30, 2006 Form 10-Q for further discussion of this measure.

• In evaluating the results of 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

NON-GAAP FINANCIAL MEASURES

The results and ratios before the impact of significant commutations and catastrophes, presented on pages 15 through 18 of this financial supplement, are non-GAAP financial measures that are not a full financial presentation in accordance with GAAP. These pages also present the most comparable GAAP measures (i.e., the results and ratios after the impact of significant commutations and catastrophes) in order to facilitate the reconciliation of these non-GAAP measures.

ii

CNA FINANCIAL CORPORATION
Financial Supplement
Statements of Operations

PERIOD ENDED DECEMBER 31

	Three Months									Twelve Months
							Fav /									Fav /
							(Unfav)									(Unfav)
(In millions)	2006			2005			% Change			2006			2005			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,899		$	1,885			1	%	$	7,603		$	7,569			—	%
Net investment income		690			547			26			2,412			1,892			27
Realized investment gains (losses), net of participating policyholders’ and minority interests		154			(84	)		N/M			86			(10	)		N/M
Other revenues		100			60			67			275			411			(33	)
Total revenues		2,843			2,408			18			10,376			9,862			5
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,601			2,113			24			6,047			6,999			14
Amortization of deferred acquisition costs		402			375			(7	)		1,534			1,543			1
Other operating expenses		304			268			(13	)		1,027			1,034			1
Restructuring and other related charges		—			—			N/M			(13	)		—			N/M
Interest		38			28			(36	)		131			124			(6	)
Total claims, benefits and expenses		2,345			2,784			16			8,726			9,700			10
Income (loss) before income tax and minority interest		498			(376	)		N/M			1,650			162			N/M
Income tax (expense) benefit		(130	)		158			(182	)		(469	)		105			N/M
Minority interest		(12	)		(8	)		(50	)		(44	)		(24	)		(83	)
Income (loss) from continuing operations		356			(226	)		N/M			1,137			243			N/M
Income (loss) from discontinued operations, net of tax		(27	)		9			N/M			(29	)		21			N/M
Net income (loss)	$	329		$	(217	)		N/M	%	$	1,108		$	264			N/M	%

1

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

PERIOD ENDED DECEMBER 31	Three Months									Twelve 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)	$	248		$	(172	)		N/M	%	$	1,070		$	253			N/M	%
Net realized investment gains (losses), net of participating policyholders’ and minority interests		108			(54	)		N/M			67			(10	)		N/M
Income (loss) from continuing operations		356			(226	)		N/M			1,137			243			N/M
Income (loss) from discontinued operations, net of tax		(27	)		9			N/M			(29	)		21			N/M
Net income (loss)	$	329		$	(217	)		N/M	%	$	1,108		$	264			N/M	%
BASIC EARNINGS (LOSS) PER SHARE
Income (loss) from continuing operations	$	1.33		$	(0.95	)		N/M	%	$	4.17		$	0.68			N/M	%
Income (loss) from discontinued operations, net of tax		(0.10	)		0.03			N/M			(0.11	)		0.08			N/M
Basic earnings (loss) per share available to common stockholders (1)	$	1.23		$	(0.92	)		N/M	%	$	4.06		$	0.76			N/M	%
DILUTED EARNINGS (LOSS) PER SHARE
Income (loss) from continuing operations	$	1.32		$	(0.95	)		N/M	%	$	4.16		$	0.68			N/M	%
Income (loss) from discontinued operations, net of tax		(0.10	)		0.03			N/M			(0.11	)		0.08			N/M
Diluted earnings (loss) per share available to common stockholders (1)	$	1.22		$	(0.92	)		N/M	%	$	4.05		$	0.76			N/M	%
WEIGHTED AVERAGE OUTSTANDING COMMON STOCK AND COMMON STOCK EQUIVALENTS
Basic		271.0			256.0						262.1			256.0
Diluted		271.3			256.0						262.3			256.0
RETURN ON EQUITY
Net income (loss) (2)		13.8	%		(9.6	)%					11.8	%		2.9	%
Net operating income (loss) (3)		11.0			(7.9	)					12.0			3.0

(1)	The twelve months ended December 31, 2006 per share results available to common stockholders are reduced by $46 million, or $0.17 per share, of undeclared but accumulated preferred stock dividends. The three and twelve months ended December 31, 2005 per share results available to common stockholders are reduced by $18 million and $70 million, or $0.07 per share and $0.27 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)	Annualized net income divided by the average stockholders’ equity including accumulated other comprehensive income (AOCI) for the period. Average equity including AOCI is calculated using a simple average of the beginning and ending balances for the period.
(3)	Annualized net operating income divided by the average stockholders’ equity excluding AOCI for the period. Average equity excluding AOCI is calculated using a simple average of the beginning and ending balances for the period.

2

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

(In millions, except per share data)	December 31, 2006			December 31, 2005
Total assets	$	60,283		$	59,016
Insurance reserves		41,080			42,436
Debt		2,156			1,690
Total liabilities		50,180			49,775
Minority interest		335			291
Accumulated other comprehensive income		549			359
Total stockholders’ equity		9,768			8,950
Book value per common share (1)	$	36.03		$	31.26
Book value per common share excluding AOCI (1)	$	34.00		$	29.85
Outstanding shares of common stock (in millions of shares)		271.1			256.0
THREE MONTHS ENDED DECEMBER 31
(In millions)	2006			2005
Net cash flows provided by operating activities (2)	$	467		$	709
Net cash flows used by investing activities		(156	)		(520	)
Net cash flows used by financing activities		(323	)		(170	)
Net cash flows	$	(12	)	$	19
TWELVE MONTHS ENDED DECEMBER 31
(In millions)	2006			2005
Net cash flows provided by operating activities (2)	$	2,250		$	2,169
Net cash flows used by investing activities		(1,646	)		(1,316	)
Net cash flows used by financing activities		(605	)		(837	)
Net cash flows	$	(1	)	$	16

(1)	Book value per common share as of December 31, 2006 and December 31, 2005 excludes $0 million and $750 million of preferred stock (Series H) and $0 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 twelve months ended December 31, 2006 include $(11) million and $(11) million related to discontinued operations. Operating cash flows for the three and twelve months ended December 31, 2005 include $(14) million and $(47) 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 December 31, 2006
Gross	$	14,934	$	5,529	$	20,463
Ceded		3,068		1,258		4,326
Net	$	11,866	$	4,271	$	16,137
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 December 31, 2006
Gross	$	3,134	$	6,039	$	29,636
Ceded		1,278		2,587		8,191
Net	$	1,856	$	3,452	$	21,445
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 DECEMBER 31, 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	$	14,822		$	5,507		$	20,329		$	3,269		$	6,543		$	30,141
Ceded		3,221			1,342			4,563			1,398			3,130			9,091
Net		11,601			4,165			15,766			1,871			3,413			21,050
Net incurred claim & claim adjustment expenses		859			389			1,248			114			101			1,463
Net claim & claim adjustment expense payments		(594	)		(283	)		(877	)		(129	)		(62	)		(1,068	)
Claim & claim adjustment expense reserves, end of period
Net		11,866			4,271			16,137			1,856			3,452			21,445
Ceded		3,068			1,258			4,326			1,278			2,587			8,191
Gross	$	14,934		$	5,529		$	20,463		$	3,134		$	6,039		$	29,636

TWELVE MONTHS ENDED DECEMBER 31, 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		3,138			1,546			4,684			438			200			5,322
Net claim & claim adjustment expense payments (1)		(2,518	)		(1,069	)		(3,587	)		(419	)		(204	)		(4,210	)
Claim & claim adjustment expense reserves, end of period
Net		11,866			4,271			16,137			1,856			3,452			21,445
Ceded		3,068			1,258			4,326			1,278			2,587			8,191
Gross	$	14,934		$	5,529		$	20,463		$	3,134		$	6,039		$	29,636

(1) Net claim & claim adjustment expense payments for the twelve months ended December 31, 2006 include a $761 million reduction related to the commutation of the CCC Cover.

5

CNA FINANCIAL CORPORATION
Financial Supplement
Investments by Segment Aggregation

	December 31, 2006					September 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	$	23,238		$	23,254	$	20,304		$	20,350	$	16,988		$	16,972
Fixed maturities — tax exempt		3,307			3,351		2,651			2,701		7,579			7,631
Equities		236			475		227			399		221			374
Short-term investments		5,329			5,330		8,177			8,178		3,715			3,714
Limited partnership investments		1,605			1,605		1,485			1,485		1,223			1,223
Other		26			26		30			29		34			32
Total investments	$	33,741		$	34,041	$	32,874		$	33,142	$	29,760		$	29,946
Net receivable/(payable)	$	(6	)			$	81				$	266
Securities lending collateral		(2,851	)				(2,377	)				(742	)
Life & Group Non-Core:
Fixed maturities — taxable	$	6,981		$	7,451	$	6,923		$	7,363	$	6,574		$	7,053
Fixed maturities — tax exempt		1,609			1,795		1,579			1,736		1,475			1,578
Equities		172			182		168			177		290			307
Short-term investments		380			380		283			282		523			524
Limited partnership investments		247			247		238			238		286			286
Other		—			—		1			1		1			1
Total investments	$	9,389		$	10,055	$	9,192		$	9,797	$	9,149		$	9,749
Net receivable/(payable)	$	(2	)			$	34				$	84
Securities lending collateral		—					(8	)				(25	)
Total investments	$	43,130		$	44,096	$	42,066		$	42,939	$	38,909		$	39,695
Total net receivable/(payable)	$	(8	)			$	115				$	350
Total securities lending collateral		(2,851	)				(2,385	)				(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 $90 million, $91 million and $86 million as of December 31, 2006, September 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
DECEMBER 31

	Standard Lines									Specialty Lines									P&C Operations
							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2006			2005			% Change			2006			2005			% Change			2006			2005			% Change
Gross written premiums	$	1,483		$	1,455			2	%	$	759		$	728			4	%	$	2,242		$	2,183			3	%
Net written premiums		1,039			1,030			1			648			625			4			1,687			1,655			2
Net earned premiums		1,103			1,077			2			640			644			(1	)		1,743			1,721			1
Net investment income		286			227			26			116			84			38			402			311			29
Other revenues		47			24			96			42			30			40			89			54			65
Total operating revenues		1,436			1,328			8			798			758			5			2,234			2,086			7
Claims, benefits and expenses:
Net incurred claims and benefits		796			1,107			28			389			459			15			1,185			1,566			24
Policyholders’ dividends		6			3			(100	)		1			1			—			7			4			(75	)
Amortization of deferred acquisition costs		256			229			(12	)		143			142			(1	)		399			371			(8	)
Other insurance related expenses		100			126			21			36			22			(64	)		136			148			8
Other expenses		70			28			(150	)		36			27			(33	)		106			55			(93	)
Total claims, benefits and expenses		1,228			1,493			18			605			651			7			1,833			2,144			15
Operating income (loss) before income tax and minority interest		208			(165	)		N/M			193			107			80			401			(58	)		N/M
Income tax (expense) benefit on operating income (loss)		(51	)		69			(174	)		(64	)		(33	)		(94	)		(115	)		36			N/M
Minority interest		(3	)		(2	)		(50	)		(8	)		(6	)		(33	)		(11	)		(8	)		(38	)
Net operating income (loss) from continuing operations		154			(98	)		N/M			121			68			78			275			(30	)		N/M
Realized investment gains (losses), net of participating policyholders’ and minority interests		82			(51	)		N/M			32			(11	)		N/M			114			(62	)		N/M
Income tax (expense) benefit on realized investment gains (losses)		(23	)		18			N/M			(12	)		4			N/M			(35	)		22			N/M
Net income (loss) from continuing operations	$	213		$	(131	)		N/M	%	$	141		$	61			131	%	$	354		$	(70	)		N/M	%
Financial Ratios
Loss & LAE		72.2	%		102.8	%					60.8	%		71.2	%					68.0	%		91.0	%
Acquisition expense		18.1			19.1						18.8			19.0						18.3			19.1
Underwriting expense		14.1			13.9						9.1			6.6						12.4			11.0
Dividends		0.4			0.3						0.2			0.1						0.3			0.3
Expense ratio, including dividends		32.6			33.3						28.1			25.7						31.0			30.4
Combined ratio		104.8	%		136.1	%					88.9	%		96.9	%					99.0	%		121.4	%

7

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

THREE MONTHS ENDED
DECEMBER 31

	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2006			2005			2006			2005			% Change			2006			2005			% Change			2006			2005			% Change
Net earned premiums	$	1,743		$	1,721		$	159		$	165			(4)	%	$	(3	)	$	(1	)		(200	)%	$	1,899		$	1,885			1	%
Net investment income		402			311			194			162			20			94			74			27			690			547			26
Other revenues		89			54			22			17			29			(11	)		(11	)		—			100			60			67
Total operating revenues		2,234			2,086			375			344			9			80			62			29			2,689			2,492			8
Claims, benefits and expenses:
Net incurred claims and benefits		1,185			1,566			309			300			(3	)		100			241			59			1,594			2,107			24
Policyholders’ dividends		7			4			—			2			N/M			—			—			N/M			7			6			(17	)
Amortization of deferred acquisition costs		399			371			2			4			50			1			—			N/M			402			375			(7	)
Other insurance related expenses		136			148			60			63			5			(2	)		14			114			194			225			14
Other expenses		106			55			18			18			—			24			(2	)		N/M			148			71			(108	)
Total claims, benefits and expenses		1,833			2,144			389			387			(1	)		123			253			51			2,345			2,784			16
Operating income (loss) before income tax and minority interest		401			(58	)		(14	)		(43	)		67			(43	)		(191	)		77			344			(292	)		N/M
Income tax (expense) benefit on operating income (loss)		(115	)		36			13			21			(38	)		18			71			(75	)		(84	)		128			(166	)
Minority interest		(11	)		(8	)		—			—			N/M			(1	)		—			N/M			(12	)		(8	)		(50	)
Net operating income (loss) from continuing operations		275			(30	)		(1	)		(22	)		95			(26	)		(120	)		78			248			(172	)		N/M
Realized investment gains (losses), net of participating policyholders’ and minority interests		114			(62	)		6			(22	)		127			34			—			N/M			154			(84	)		N/M
Income tax (expense) benefit on realized investment gains (losses)		(35	)		22			(2	)		8			(125	)		(9	)		—			N/M			(46	)		30			N/M
Net income (loss) from continuing operations	$	354		$	(70	)	$	3		$	(36	)		108	%	$	(1	)	$	(120	)		99	%	$	356		$	(226	)		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	$	2,242		$	2,183		$	176		$	214			(18)	%	$	1		$	76			(99)	%	$	2,419		$	2,473			(2	)%
Net written premiums		1,687			1,655			162			159			2			(3	)		(1	)		(200	)		1,846			1,813			2
Net earned premiums		1,743			1,721			157			162			(3	)		(3	)		(2	)		(50	)		1,897			1,881			1
Financial Ratios
Loss & LAE		68.0	%		91.0	%		N/M	%		N/M	%					N/M	%		N/M	%					79.6	%		109.0	%
Acquisition expense		18.3			19.1			N/M			N/M						N/M			N/M						17.8			18.5
Underwriting expense		12.4			11.0			N/M			N/M						N/M			N/M						13.6			13.1
Dividends		0.3			0.3			N/M			N/M						N/M			N/M						0.3			0.2
Expense ratio, including dividends		31.0			30.4			N/M			N/M						N/M			N/M						31.7			31.8
Combined ratio		99.0	%		121.4	%		N/M	%		N/M	%					N/M	%		N/M	%					111.3	%		140.8	%

8

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

TWELVE MONTHS ENDED
DECEMBER 31

	Standard Lines									Specialty Lines									P&C Operations
							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2006			2005			% Change			2006			2005			% Change			2006			2005			% Change
Gross written premiums	$	6,209		$	5,986			4	%	$	3,078		$	2,947			4	%	$	9,287		$	8,933			4	%
Net written premiums		4,433			4,382			1			2,596			2,463			5			7,029			6,845			3
Net earned premiums		4,413			4,410			—			2,555			2,475			3			6,968			6,885			1
Net investment income		991			767			29			403			281			43			1,394			1,048			33
Other revenues		96			98			(2	)		154			124			24			250			222			13
Total operating revenues		5,500			5,275			4			3,112			2,880			8			8,612			8,155			6
Claims, benefits and expenses:
Net incurred claims and benefits		3,093			3,857			20			1,546			1,617			4			4,639			5,474			15
Policyholders’ dividends		18			19			5			4			4			—			22			23			4
Amortization of deferred acquisition costs		981			986			1			538			532			(1	)		1,519			1,518			—
Other insurance related expenses		393			444			11			145			115			(26	)		538			559			4
Restructuring and other related charges		—			—			N/M			—			—			N/M			—			—			N/M
Other expenses		128			110			(16	)		139			108			(29	)		267			218			(22	)
Total claims, benefits and expenses		4,613			5,416			15			2,372			2,376			—			6,985			7,792			10
Operating income (loss) before income tax and minority interest		887			(141	)		N/M			740			504			47			1,627			363			N/M
Income tax (expense) benefit on operating income (loss)		(258	)		110			N/M			(245	)		(154	)		(59	)		(503	)		(44	)		N/M
Minority interest		(12	)		(10	)		(20	)		(31	)		(14	)		(121	)		(43	)		(24	)		(79	)
Net operating income (loss) from continuing operations		617			(41	)		N/M			464			336			38			1,081			295			N/M
Realized investment gains, net of participating policyholders’ and minority interests		76			20			N/M			28			14			100			104			34			N/M
Income tax expense on realized investment gains		(21	)		(11	)		(91	)		(10	)		(2	)		N/M			(31	)		(13	)		(138	)
Net income (loss) from continuing operations	$	672		$	(32	)		N/M	%	$	482		$	348			39	%	$	1,154		$	316			N/M	%
Financial Ratios
Loss & LAE		70.1	%		87.5	%					60.5	%		65.3	%					66.6	%		79.5	%
Acquisition expense		18.1			19.8						18.3			19.5						18.2			19.7
Underwriting expense		13.0			12.6						8.4			6.6						11.3			10.5
Dividends		0.4			0.4						0.2			0.2						0.3			0.3
Expense ratio, including dividends		31.5			32.8						26.9			26.3						29.8			30.5
Combined ratio		101.6	%		120.3	%					87.4	%		91.6	%					96.4	%		110.0	%

9

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

TWELVE MONTHS ENDED
DECEMBER 31

	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2006			2005			2006			2005			% Change			2006			2005			% Change			2006			2005			% Change
Net earned premiums	$	6,968		$	6,885		$	641		$	704			(9	)%	$	(6	)	$	(20	)		70	%	$	7,603		$	7,569			—	%
Net investment income		1,394			1,048			698			593			18			320			251			27			2,412			1,892			27
Other revenues		250			222			66			95			(31	)		(41	)		94			(144	)		275			411			(33	)
Total operating revenues		8,612			8,155			1,405			1,392			1			273			325			(16	)		10,290			9,872			4
Claims, benefits and expenses:
Net incurred claims and benefits		4,639			5,474			1,195			1,160			(3	)		191			341			44			6,025			6,975			14
Policyholders’ dividends		22			23			—			1			N/M			—			—			N/M			22			24			8
Amortization of deferred acquisition costs		1,519			1,518			14			22			36			1			3			67			1,534			1,543			1
Other insurance related expenses		538			559			201			257			22			18			13			(38	)		757			829			9
Restructuring and other related charges		—			—			—			—			N/M			(13	)		—			N/M			(13	)		—			N/M
Other expenses		267			218			58			61			5			76			50			(52	)		401			329			(22	)
Total claims, benefits and expenses		6,985			7,792			1,468			1,501			2			273			407			33			8,726			9,700			10
Operating income (loss) before income tax and minority interest		1,627			363			(63	)		(109	)		42			—			(82	)		N/M			1,564			172			N/M
Income tax (expense) benefit on operating income (loss)		(503	)		(44	)		49			58			(16	)		4			91			(96	)		(450	)		105			N/M
Minority interest		(43	)		(24	)		—			—			N/M			(1	)		—			N/M			(44	)		(24	)		(83	)
Net operating income (loss) from continuing operations		1,081			295			(14	)		(51	)		73			3			9			(67	)		1,070			253			N/M
Realized investment gains (losses), net of participating policyholders’ and minority interests		104			34			(50	)		(30	)		(67	)		32			(14	)		N/M			86			(10	)		N/M
Income tax (expense) benefit on realized investment gains (losses)		(31	)		(13	)		17			11			55			(5	)		2			N/M			(19	)		—			N/M
Net income (loss) from continuing operations	$	1,154		$	316		$	(47	)	$	(70	)		33	%	$	30		$	(3	)		N/M	%	$	1,137		$	243			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	$	9,287		$	8,933		$	734		$	916			(20	)%	$	18		$	930			(98	)%	$	10,039		$	10,779			(7	)%
Net written premiums		7,029			6,845			633			694			(9	)		(7	)		(30	)		77			7,655			7,509			2
Net earned premiums		6,968			6,885			633			693			(9	)		(6	)		(20	)		70			7,595			7,558			—
Financial Ratios
Loss & LAE		66.6	%		79.5	%		N/M	%		N/M	%					N/M	%		N/M	%					75.7	%		89.4	%
Acquisition expense		18.2			19.7			N/M			N/M						N/M			N/M						17.8			19.4
Underwriting expense		11.3			10.5			N/M			N/M						N/M			N/M						12.2			11.8
Dividends		0.3			0.3			N/M			N/M						N/M			N/M						0.3			0.3
Expense ratio, including dividends		29.8			30.5			N/M			N/M						N/M			N/M						30.3			31.5
Combined ratio		96.4	%		110.0	%		N/M	%		N/M	%					N/M	%		N/M	%					106.0	%		120.9	%

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 December 31, 2006	$	16	$	3	$	19	$	—	$	19
Twelve months ended December 31, 2006 (1)		54		5		59		—		59
Three months ended December 31, 2005 (2)	$	46	$	4	$	50	$	—	$	50
Twelve months ended December 31, 2005 (2)		470		23		493		—		493

CATASTROPHE LOSSES (AFTER-TAX)							Corporate &
(In millions)	Standard Lines		Specialty Lines		P&C Operations		Other Non-Core		Total
Three months ended December 31, 2006	$	10	$	2	$	12	$	—	$	12
Twelve months ended December 31, 2006 (1)		35		3		38		—		38
Three months ended December 31, 2005 (2)	$	30	$	3	$	33	$	—	$	33
Twelve months ended December 31, 2005 (2)		305		15		320		—		320

(1)

For the twelve months ended December 31, 2006, the above amounts exclude a release of $8 million pretax ($6 million after-tax) of insurance bad debt related to the third quarter 2005 hurricanes.

(2)

For the three and twelve months ended December 31, 2005, the above amounts exclude $6 million pretax ($4 million after-tax) and $27 million pretax ($18 million after-tax) of reinstatement premium. For the twelve months ended December 31, 2005, the above amounts exclude $8 million pretax ($6 million after-tax) of insurance bad debt related to the third quarter 2005 hurricanes and 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 twelve months ended December 31, 2005, the above amounts include losses of $47 million pretax ($31 million after-tax) and $481 million pretax ($313 million after-tax) related to Hurricanes Katrina, Wilma, Rita, Dennis and Ophelia.

11

CNA FINANCIAL CORPORATION
Financial Supplement
Analysis of Pretax Net Investment Income

(In millions)	Standard Lines
	1Q05			2Q05			3Q05			4Q05			2005			1Q06			2Q06			3Q06			4Q06			2006
Limited partnership income	$	42		$	22		$	38		$	37		$	139		$	38		$	27		$	23		$	62		$	150
Interest on funds withheld and other deposits		(18	)		(34	)		(34	)		(19	)		(105	)		(14	)		(22	)		(8	)		(3	)		(47	)
Income (loss) from trading securities		1			—			1			—			2			—			—			—			—			—
Other investment income		158			183			181			209			731			204			233			224			227			888
Net investment income	$	183		$	171		$	186		$	227		$	767		$	228		$	238		$	239		$	286		$	991

	Specialty Lines
	1Q05			2Q05			3Q05			4Q05			2005			1Q06			2Q06			3Q06			4Q06			2006
Limited partnership income	$	13		$	7		$	12		$	13		$	45		$	13		$	10		$	8		$	24		$	55
Interest on funds withheld and other deposits		(12	)		(1	)		(2	)		(2	)		(17	)		(2	)		(1	)		(1	)		(1	)		(5	)
Income (loss) from trading securities		—			—			—			—			—			—			—			—			—			—
Other investment income		55			61			64			73			253			76			90			94			93			353
Net investment income	$	56		$	67		$	74		$	84		$	281		$	87		$	99		$	101		$	116		$	403

	P&C Operations
	1Q05			2Q05			3Q05			4Q05			2005			1Q06			2Q06			3Q06			4Q06			2006
Limited partnership income	$	55		$	29		$	50		$	50		$	184		$	51		$	37		$	31		$	86		$	205
Interest on funds withheld and other deposits		(30	)		(35	)		(36	)		(21	)		(122	)		(16	)		(23	)		(9	)		(4	)		(52	)
Income (loss) from trading securities		1			—			1			—			2			—			—			—			—			—
Other investment income		213			244			245			282			984			280			323			318			320			1,241
Net investment income	$	239		$	238		$	260		$	311		$	1,048		$	315		$	337		$	340		$	402		$	1,394

	Life & Group Non-Core
	1Q05			2Q05		3Q05		4Q05		2005		1Q06		2Q06			3Q06		4Q06		2006
Limited partnership income	$	9		$	1	$	8	$	4	$	22	$	10	$	8		$	6	$	10	$	34
Interest on funds withheld and other deposits		—			—		—		—		—		—		—			—		—		—
Income (loss) from trading securities		(31	)		14		40		22		45		42		(9	)		30		40		103
Other investment income		128			131		131		136		526		135		139			143		144		561
Net investment income	$	106		$	146	$	179	$	162	$	593	$	187	$	138		$	179	$	194	$	698

	Corporate & Other Non-Core
	1Q05			2Q05			3Q05			4Q05			2005			1Q06			2Q06			3Q06			4Q06		2006
Limited partnership income	$	15		$	8		$	14		$	11		$	48		$	13		$	8		$	9		$	19	$	49
Interest on funds withheld and other deposits		(9	)		(15	)		(14	)		(6	)		(44	)		(9	)		(7	)		(1	)		1		(16	)
Income (loss) from trading securities		—			—			—			—			—			—			—			—			—		—
Other investment income		55			62			61			69			247			64			76			73			74		287
Net investment income	$	61		$	55		$	61		$	74		$	251		$	68		$	77		$	81		$	94	$	320

	Total Operations
	1Q05			2Q05			3Q05			4Q05			2005			1Q06			2Q06			3Q06			4Q06			2006
Limited partnership income	$	79		$	38		$	72		$	65		$	254		$	74		$	53		$	46		$	115		$	288
Interest on funds withheld and other deposits		(39	)		(50	)		(50	)		(27	)		(166	)		(25	)		(30	)		(10	)		(3	)		(68	)
Income (loss) from trading securities		(30	)		14			41			22			47			42			(9	)		30			40			103
Other investment income		396			437			437			487			1,757			479			538			534			538			2,089
Net investment income	$	406		$	439		$	500		$	547		$	1,892		$	570		$	552		$	600		$	690		$	2,412

12

CNA FINANCIAL CORPORATION
Financial Supplement
Statutory Data — Preliminary

PERIOD ENDED DECEMBER 31

	Three Months									Twelve Months
Income Statement	(Preliminary)						Fav / (Unfav)			(Preliminary)						Fav / (Unfav)
(In millions)	2006			2005			% Change			2006			2005			% Change
Property & Casualty Companies
Gross written premiums	$	2,278		$	2,278			—	%	$	9,497		$	10,226			(7	)%
Net written premiums		1,701			1,693			—			7,157			7,069			1
Net earned premiums		1,599			1,608			(1	)		6,419			6,516			(1	)
Claim and claim adjustment expenses		1,401			1,873			25			5,053			6,010			16
Acquisition expenses		285			273			(4	)		1,229			1,199			(3	)
Underwriting expenses		151			203			26			833			914			9
Policyholders’ dividends		3			6			50			15			34			56
Underwriting loss		(241	)		(747	)		68			(711	)		(1,641	)		57
Net investment income (1)		484			567			(15	)		1,847			2,202			(16	)
Other expenses		(33	)		(64	)		48			(121	)		(89	)		(36	)
Income tax (expense) benefit		(22	)		7			N/M			(245	)		90			N/M
Net realized losses		(81	)		(62	)		(31	)		(49	)		(12	)		N/M
Net income (loss)	$	107		$	(299	)		136	%	$	721		$	550			31	%
Financial Ratios
Loss and LAE		87.6	%		116.5	%					78.7	%		92.2	%
Acquisition expense		16.7			16.1						17.2			17.0
Underwriting expense		8.9			12.0						13.0			13.0
Policyholders’ dividends		0.2			0.4						0.2			0.5
Expense ratio		25.8			28.5						30.4			30.5
Combined ratio		113.4	%		145.0	%					109.1	%		122.7	%
Life Companies
Earned premium	$	1		$	4					$	9		$	11

SUPPLEMENTAL STATUTORY DATA

	(Preliminary)
(In millions)	December 31, 2006		December 31, 2005
Property & Casualty Companies
Statutory surplus (2)	$	8,131	$	6,940
Life Companies
Statutory surplus	$	686	$	627
Gross life insurance inforce		15,653		20,549

(1)	Includes $125 million and $625 million of dividends from CCC’s life subsidiary, Continental Assurance Company, for the three and twelve months ended December 31, 2005.
(2)	Surplus includes the Property & Casualty Companies’ equity ownership of the life insurance subsidiary.

13

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

	Standard Lines
	2006 YTD			2005 FY			2005 FY
	Evaluated at			Evaluated at			Evaluated at
	12/31/06			12/31/05			12/31/06
Gross Accident Year		68.0	%		76.4	%		74.8	%
Impact of Reinsurance		0.1			(0.1	)		(0.4	)
Net Accident Year (1)		68.1			76.3			74.4	%
Impact of Significant Commutations		1.1			6.2
Impact of Corporate Covers		—			0.7
Impact of Development & Change in Allowance for Uncollectible Reinsurance		0.9			4.3
Net Calendar Year		70.1	%		87.5	%

	Specialty Lines
	2006 YTD			2005 FY			2005 FY
	Evaluated at			Evaluated at			Evaluated at
	12/31/06			12/31/05			12/31/06
Gross Accident Year		60.4	%		63.7	%		60.8	%
Impact of Reinsurance		(0.1	)		(0.3	)		(0.4	)
Net Accident Year (1)		60.3			63.4			60.4	%
Impact of Significant Commutations		—			0.9
Impact of Corporate Covers		—			(0.3	)
Impact of Development & Change in Allowance for Uncollectible Reinsurance		0.2			1.3
Net Calendar Year		60.5	%		65.3	%

	P&C Operations
	2006 YTD			2005 FY			2005 FY
	Evaluated at			Evaluated at			Evaluated at
	12/31/06			12/31/05			12/31/06
Gross Accident Year		65.5	%		72.2	%		70.2	%
Impact of Reinsurance		(0.3	)		(0.6	)		(0.9	)
Net Accident Year (1)		65.2			71.6			69.3	%
Impact of Significant Commutations		0.7			4.3
Impact of Corporate Covers		—			0.4
Impact of Development & Change in Allowance for Uncollectible Reinsurance		0.7			3.2
Net Calendar Year		66.6	%		79.5	%

(1) The 2006 net accident year loss ratio evaluated at December 31, 2006 includes 1.3 points, 0.2 points, and 0.9 points related to catastrophe losses for Standard Lines, Specialty Lines, and P&C Operations. The 2005 net accident year loss ratio evaluated at December 31, 2006 includes 11.1 points, 1.1 points, and 7.4 points related to catastrophe losses for Standard Lines, Specialty Lines, and P&C Operations.

14

CNA FINANCIAL CORPORATION
Financial Supplement
Impact of Significant Items

THREE MONTHS ENDED	Standard Lines												Specialty Lines											P&C Operations
DECEMBER 31, 2006
	2006 Results												2006 Results											2006 Results
	Before Impact of			Significant									Before Impact of			Significant								Before Impact of			Significant
(In millions)	Significant Items			Commutations			Catastrophes			2006 Results			Significant Items			Commutations		Catastrophes			2006 Results			Significant Items			Commutations			Catastrophes			2006 Results
Net earned premiums	$	1,103		$	—		$	—		$	1,103		$	640		$	—	$	—		$	640		$	1,743		$	—		$	—		$	1,743
Net investment income		286			—			—			286			116			—		—			116			402			—			—			402
Other revenues		47			—			—			47			42			—		—			42			89			—			—			89
Total operating revenues		1,436			—			—			1,436			798			—		—			798			2,234			—			—			2,234
Claims, benefits and expenses:
Net incurred claims and benefits		732			48			16			796			386			—		3			389			1,118			48			19			1,185
Policyholders’ dividends		6			—			—			6			1			—		—			1			7			—			—			7
Amortization of deferred acquisition costs		256			—			—			256			143			—		—			143			399			—			—			399
Other insurance related expenses		100			—			—			100			36			—		—			36			136			—			—			136
Other operating expenses		70			—			—			70			36			—		—			36			106			—			—			106
Total claims, benefits and expenses		1,164			48			16			1,228			602			—		3			605			1,766			48			19			1,833
Operating income (loss) before income tax and minority interest		272			(48	)		(16	)		208			196			—		(3	)		193			468			(48	)		(19	)		401
Income tax (expense) benefit on operating income (loss)		(74	)		17			6			(51	)		(65	)		—		1			(64	)		(139	)		17			7			(115	)
Minority interest		(3	)		—			—			(3	)		(8	)		—		—			(8	)		(11	)		—			—			(11	)
Net operating income (loss) from continuing operations		195			(31	)		(10	)		154			123			—		(2	)		121			318			(31	)		(12	)		275
Realized investment gains (losses), net of participating policyholders’ and minority interests		82			—			—			82			32			—		—			32			114			—			—			114
Income tax (expense) benefit on realized investment gains (losses)		(23	)		—			—			(23	)		(12	)		—		—			(12	)		(35	)		—			—			(35	)
Net income (loss) from continuing operations	$	254		$	(31	)	$	(10	)	$	213		$	143		$	—	$	(2	)	$	141		$	397		$	(31	)	$	(12	)	$	354
Financial Ratios
Loss & LAE		66.4	%								72.2	%		60.2	%							60.8	%		64.1	%								68.0	%
Acquisition expense		18.1									18.1			18.8								18.8			18.3									18.3
Underwriting expense		14.1									14.1			9.1								9.1			12.4									12.4
Dividends		0.4									0.4			0.2								0.2			0.3									0.3
Expense ratio, including dividends		32.6									32.6			28.1								28.1			31.0									31.0
Combined ratio		99.0	%								104.8	%		88.3	%							88.9	%		95.1	%								99.0	%

THREE MONTHS ENDED	Corporate & Other Non-Core										Total
DECEMBER 31, 2006
	2006 Results										2006 Results
	Before Impact of			Significant							Before Impact of			Significant
(In millions)	Significant Items			Commutations		Catastrophes		2006 Results			Significant Items			Commutations			Catastrophes			2006 Results
Net earned premiums	$	(3	)	$	—	$	—	$	(3	)	$	1,740		$	—		$	—		$	1,740
Net investment income		94			—		—		94			496			—			—			496
Other revenues		(11	)		—		—		(11	)		78			—			—			78
Total operating revenues		80			—		—		80			2,314			—			—			2,314
Claims, benefits and expenses:
Net incurred claims and benefits		100			—		—		100			1,218			48			19			1,285
Policyholders’ dividends		—			—		—		—			7			—			—			7
Amortization of deferred acquisition costs		1			—		—		1			400			—			—			400
Other insurance related expenses		(2	)		—		—		(2	)		134			—			—			134
Other operating expenses		24			—		—		24			130			—			—			130
Total claims, benefits and expenses		123			—		—		123			1,889			48			19			1,956
Operating income (loss) before income tax and minority interest		(43	)		—		—		(43	)		425			(48	)		(19	)		358
Income tax (expense) benefit on operating income (loss)		18			—		—		18			(121	)		17			7			(97	)
Minority interest		(1	)		—		—		(1	)		(12	)		—			—			(12	)
Net operating income (loss) from continuing operations		(26	)		—		—		(26	)		292			(31	)		(12	)		249
Realized investment gains (losses), net of participating policyholders’ and minority interests		34			—		—		34			148			—			—			148
Income tax (expense) benefit on realized investment gains (losses)		(9	)		—		—		(9	)		(44	)		—			—			(44	)
Net income (loss) from continuing operations	$	(1	)	$	—	$	—	$	(1	)	$	396		$	(31	)	$	(12	)	$	353

The commutations reflected above were considered significant based on their impact to net results.

15

CNA FINANCIAL CORPORATION
Financial Supplement
Impact of Significant Items

TWELVE MONTHS ENDED	Standard Lines												Specialty Lines											P&C Operations
DECEMBER 31, 2006
	2006 Results												2006 Results											2006 Results
	Before Impact of			Significant									Before Impact of			Significant								Before Impact of			Significant
(In millions)	Significant Items			Commutations			Catastrophes			2006 Results			Significant Items			Commutations		Catastrophes			2006 Results			Significant Items			Commutations			Catastrophes			2006 Results
Net earned premiums	$	4,413		$	—		$	—		$	4,413		$	2,555		$	—	$	—		$	2,555		$	6,968		$	—		$	—		$	6,968
Net investment income		991			—			—			991			403			—		—			403			1,394			—			—			1,394
Other revenues		96			—			—			96			154			—		—			154			250			—			—			250
Total operating revenues		5,500			—			—			5,500			3,112			—		—			3,112			8,612			—			—			8,612
Claims, benefits and expenses:
Net incurred claims and benefits		2,991			48			54			3,093			1,541			—		5			1,546			4,532			48			59			4,639
Policyholders’ dividends		18			—			—			18			4			—		—			4			22			—			—			22
Amortization of deferred acquisition costs		981			—			—			981			538			—		—			538			1,519			—			—			1,519
Other insurance related expenses		398			—			(5	)		393			148			—		(3	)		145			546			—			(8	)		538
Restructuring and other related charges		—			—			—			—			—			—		—			—			—			—			—			—
Other operating expenses		128			—			—			128			139			—		—			139			267			—			—			267
Total claims, benefits and expenses		4,516			48			49			4,613			2,370			—		2			2,372			6,886			48			51			6,985
Operating income (loss) before income tax and minority interest		984			(48	)		(49	)		887			742			—		(2	)		740			1,726			(48	)		(51	)		1,627
Income tax (expense) benefit on operating income (loss)		(293	)		17			18			(258	)		(246	)		—		1			(245	)		(539	)		17			19			(503	)
Minority interest		(12	)		—			—			(12	)		(31	)		—		—			(31	)		(43	)		—			—			(43	)
Net operating income (loss) from continuing operations		679			(31	)		(31	)		617			465			—		(1	)		464			1,144			(31	)		(32	)		1,081
Realized investment gains (losses), net of participating policyholders’ and minority interests		76			—			—			76			28			—		—			28			104			—			—			104
Income tax (expense) benefit on realized investment gains (losses)		(21	)		—			—			(21	)		(10	)		—		—			(10	)		(31	)		—			—			(31	)
Net income (loss) from continuing operations	$	734		$	(31	)	$	(31	)	$	672		$	483		$	—	$	(1	)	$	482		$	1,217		$	(31	)	$	(32	)	$	1,154
Financial Ratios
Loss & LAE		67.8	%								70.1	%		60.3	%							60.5	%		65.0	%								66.6	%
Acquisition expense		18.2									18.1			18.4								18.3			18.4									18.2
Underwriting expense		13.0									13.0			8.4								8.4			11.3									11.3
Dividends		0.4									0.4			0.2								0.2			0.3									0.3
Expense ratio, including dividends		31.6									31.5			27.0								26.9			30.0									29.8
Combined ratio		99.4	%								101.6	%		87.3	%							87.4	%		95.0	%								96.4	%

TWELVE MONTHS ENDED	Corporate & Other Non-Core										Total
DECEMBER 31, 2006
	2006 Results										2006 Results
	Before Impact of			Significant							Before Impact of			Significant
(In millions)	Significant Items			Commutations		Catastrophes		2006 Results			Significant Items			Commutations			Catastrophes			2006 Results
Net earned premiums	$	(6	)	$	—	$	—	$	(6	)	$	6,962		$	—		$	—		$	6,962
Net investment income		320			—		—		320			1,714			—			—			1,714
Other revenues		(41	)		—		—		(41	)		209			—			—			209
Total operating revenues		273			—		—		273			8,885			—			—			8,885
Claims, benefits and expenses:
Net incurred claims and benefits		191			—		—		191			4,723			48			59			4,830
Policyholders’ dividends		—			—		—		—			22			—			—			22
Amortization of deferred acquisition costs		1			—		—		1			1,520			—			—			1,520
Other insurance related expenses		18			—		—		18			564			—			(8	)		556
Restructuring and other related charges		(13	)		—		—		(13	)		(13	)		—			—			(13	)
Other operating expenses		76			—		—		76			343			—			—			343
Total claims, benefits and expenses		273			—		—		273			7,159			48			51			7,258
Operating income (loss) before income tax and minority interest		—			—		—		—			1,726			(48	)		(51	)		1,627
Income tax (expense) benefit on operating income (loss)		4			—		—		4			(535	)		17			19			(499	)
Minority interest		(1	)		—		—		(1	)		(44	)		—			—			(44	)
Net operating income (loss) from continuing operations		3			—		—		3			1,147			(31	)		(32	)		1,084
Realized investment gains (losses), net of participating policyholders’ and minority interests		32			—		—		32			136			—			—			136
Income tax (expense) benefit on realized investment gains (losses)		(5	)		—		—		(5	)		(36	)		—			—			(36	)
Net income (loss) from continuing operations	$	30		$	—	$	—	$	30		$	1,247		$	(31	)	$	(32	)	$	1,184

The commutations reflected above were considered significant based on their impact to net results. During the third quarter of 2006, the Company also commuted a corporate aggregate reinsurance treaty (the CCC Cover) which is not reflected above as it had no impact on net results.

16

CNA FINANCIAL CORPORATION
Financial Supplement
Impact of Significant Items

THREE MONTHS ENDED	Standard Lines												Specialty Lines												P&C Operations
DECEMBER 31, 2005
	2005 Results												2005 Results												2005 Results
	Before Impact of			Significant									Before Impact of			Significant									Before Impact of			Significant
(In millions)	Significant Items			Commutations			Catastrophes			2005 Results			Significant Items			Commutations			Catastrophes			2005 Results			Significant Items			Commutations			Catastrophes			2005 Results
Net earned premiums	$	1,083		$	—		$	(6	)	$	1,077		$	644		$	—		$	—		$	644		$	1,727		$	—		$	(6	)	$	1,721
Net investment income		227			—			—			227			84			—			—			84			311			—			—			311
Other revenues		24			—			—			24			30			—			—			30			54			—			—			54
Total operating revenues		1,334			—			(6	)		1,328			758			—			—			758			2,092			—			(6	)		2,086
Claims, benefits and expenses:
Net incurred claims and benefits		795			266			46			1,107			432			23			4			459			1,227			289			50			1,566
Policyholders’ dividends		3			—			—			3			1			—			—			1			4			—			—			4
Amortization of deferred acquisition costs		229			—			—			229			142			—			—			142			371			—			—			371
Other insurance related expenses		126			—			—			126			22			—			—			22			148			—			—			148
Other operating expenses		28			—			—			28			27			—			—			27			55			—			—			55
Total claims, benefits and expenses		1,181			266			46			1,493			624			23			4			651			1,805			289			50			2,144
Operating income (loss) before income tax and minority interest		153			(266	)		(52	)		(165	)		134			(23	)		(4	)		107			287			(289	)		(56	)		(58	)
Income tax (expense) benefit on operating income (loss)		(42	)		93			18			69			(42	)		8			1			(33	)		(84	)		101			19			36
Minority interest		(2	)		—			—			(2	)		(6	)		—			—			(6	)		(8	)		—			—			(8	)
Net operating income (loss) from continuing operations		109			(173	)		(34	)		(98	)		86			(15	)		(3	)		68			195			(188	)		(37	)		(30	)
Realized investment gains (losses), net of participating policyholders’ and minority interests		(51	)		—			—			(51	)		(11	)		—			—			(11	)		(62	)		—			—			(62	)
Income tax (expense) benefit on realized investment gains (losses)		18			—			—			18			4			—			—			4			22			—			—			22
Net income (loss) from continuing operations	$	76		$	(173	)	$	(34	)	$	(131	)	$	79		$	(15	)	$	(3	)	$	61		$	155		$	(188	)	$	(37	)	$	(70	)
Financial Ratios
Loss & LAE		73.4	%								102.8	%		67.1	%								71.2	%		71.1	%								91.0	%
Acquisition expense		19.0									19.1			19.0									19.0			19.0									19.1
Underwriting expense		13.8									13.9			6.6									6.6			11.0									11.0
Dividends		0.3									0.3			0.1									0.1			0.3									0.3
Expense ratio, including dividends		33.1									33.3			25.7									25.7			30.3									30.4
Combined ratio		106.5	%								136.1	%		92.8	%								96.9	%		101.4	%								121.4	%

THREE MONTHS ENDED	Corporate & Other Non-Core											Total
DECEMBER 31, 2005
	2005 Results											2005 Results
	Before Impact of			Significant								Before Impact of			Significant
(In millions)	Significant Items			Commutations			Catastrophes		2005 Results			Significant Items			Commutations			Catastrophes			2005 Results
Net earned premiums	$	(1	)	$	—		$	—	$	(1	)	$	1,726		$	—		$	(6	)	$	1,720
Net investment income		74			—			—		74			385			—			—			385
Other revenues		(11	)		—			—		(11	)		43			—			—			43
Total operating revenues		62			—			—		62			2,154			—			(6	)		2,148
Claims, benefits and expenses:
Net incurred claims and benefits		178			63			—		241			1,405			352			50			1,807
Policyholders’ dividends		—			—			—		—			4			—			—			4
Amortization of deferred acquisition costs		—			—			—		—			371			—			—			371
Other insurance related expenses		14			—			—		14			162			—			—			162
Other operating expenses		6			(8	)		—		(2	)		61			(8	)		—			53
Total claims, benefits and expenses		198			55			—		253			2,003			344			50			2,397
Operating income (loss) before income tax and minority interest		(136	)		(55	)		—		(191	)		151			(344	)		(56	)		(249	)
Income tax (expense) benefit on operating income (loss)		51			20			—		71			(33	)		121			19			107
Minority interest		—			—			—		—			(8	)		—			—			(8	)
Net operating income (losses) from continuing operations		(85	)		(35	)		—		(120	)		110			(223	)		(37	)		(150	)
Realized investment gains (losses), net of participating policyholders’ and minority interests		—			—			—		—			(62	)		—			—			(62	)
Income tax (expense) benefit on realized investment gains (losses)		—			—			—		—			22			—			—			22
Net income (loss) from continuing operations	$	(85	)	$	(35	)	$	—	$	(120	)	$	70		$	(223	)	$	(37	)	$	(190	)

The commutations reflected above were considered significant based on their impact to net results.

17

CNA FINANCIAL CORPORATION
Financial Supplement
Impact of Significant Items

TWELVE MONTHS ENDED	Standard Lines												Specialty Lines												P&C Operations
DECEMBER 31, 2005
	2005 Results												2005 Results												2005 Results
	Before Impact of			Significant									Before Impact of			Significant									Before Impact of			Significant
(In millions)	Significant Items			Commutations			Catastrophes			2005 Results			Significant Items			Commutations			Catastrophes			2005 Results			Significant Items			Commutations			Catastrophes			2005 Results
Net earned premiums	$	4,437		$	—		$	(27	)	$	4,410		$	2,475		$	—		$	—		$	2,475		$	6,912		$	—		$	(27	)	$	6,885
Net investment income		767			—			—			767			281			—			—			281			1,048			—			—			1,048
Other revenues		98			—			—			98			124			—			—			124			222			—			—			222
Total operating revenues		5,302			—			(27	)		5,275			2,880			—			—			2,880			8,182			—			(27	)		8,155
Claims, benefits and expenses:
Net incurred claims and benefits		3,121			266			470			3,857			1,571			23			23			1,617			4,692			289			493			5,474
Policyholders’ dividends		19			—			—			19			4			—			—			4			23			—			—			23
Amortization of deferred acquisition costs		986			—			—			986			532			—			—			532			1,518			—			—			1,518
Other insurance related expenses		453			—			(9	)		444			113			—			2			115			566			—			(7	)		559
Other operating expenses		110			—			—			110			108			—			—			108			218			—			—			218
Total claims, benefits and expenses		4,689			266			461			5,416			2,328			23			25			2,376			7,017			289			486			7,792
Operating income (loss) before income tax and minority interest		613			(266	)		(488	)		(141	)		552			(23	)		(25	)		504			1,165			(289	)		(513	)		363
Income tax (expense) benefit on operating income (loss)		(153	)		93			170			110			(171	)		8			9			(154	)		(324	)		101			179			(44	)
Minority interest		(10	)		—			—			(10	)		(14	)		—			—			(14	)		(24	)		—			—			(24	)
Net operating income (loss) from continuing operations		450			(173	)		(318	)		(41	)		367			(15	)		(16	)		336			817			(188	)		(334	)		295
Realized investment gains (losses), net of participating policyholders’ and minority interests		20			—			—			20			14			—			—			14			34			—			—			34
Income tax (expense) benefit on realized investment gains (losses)		(11	)		—			—			(11	)		(2	)		—			—			(2	)		(13	)		—			—			(13	)
Net income (loss) from continuing operations	$	459		$	(173	)	$	(318	)	$	(32	)	$	379		$	(15	)	$	(16	)	$	348		$	838		$	(188	)	$	(334	)	$	316
Financial Ratios
Loss & LAE		70.3	%								87.5	%		63.5	%								65.3	%		67.9	%								79.5	%
Acquisition expense		19.9									19.8			19.4									19.5			19.7									19.7
Underwriting expense		12.6									12.6			6.6									6.6			10.5									10.5
Dividends		0.4									0.4			0.2									0.2			0.3									0.3
Expense ratio, including dividends		32.9									32.8			26.2									26.3			30.5									30.5
Combined ratio		103.2	%								120.3	%		89.7	%								91.6	%		98.4	%								110.0	%

TWELVE MONTHS ENDED				Corporate & Other Non-Core								Total
DECEMBER 31, 2005
	2005 Results											2005 Results
	Before Impact of			Significant								Before Impact of			Significant
(In millions)	Significant Items			Commutations			Catastrophes		2005 Results			Significant Items			Commutations			Catastrophes			2005 Results
Net earned premiums	$	(20	)	$	—		$	—	$	(20	)	$	6,892		$	—		$	(27	)	$	6,865
Net investment income		251			—			—		251			1,299			—			—			1,299
Other revenues		94			—			—		94			316			—			—			316
Total operating revenues		325			—			—		325			8,507			—			(27	)		8,480
Claims, benefits and expenses:
Net incurred claims and benefits		222			119			—		341			4,914			408			493			5,815
Policyholders’ dividends		—			—			—		—			23			—			—			23
Amortization of deferred acquisition costs		3			—			—		3			1,521			—			—			1,521
Other insurance related expenses		13			—			—		13			579			—			(7	)		572
Other operating expenses		58			(8	)		—		50			276			(8	)		—			268
Total claims, benefits and expenses		296			111			—		407			7,313			400			486			8,199
Operating income (loss) before income tax and minority interest		29			(111	)		—		(82	)		1,194			(400	)		(513	)		281
Income tax (expense) benefit on operating income (loss)		51			40			—		91			(273	)		141			179			47
Minority interest		—			—			—		—			(24	)		—			—			(24	)
Net operating income (loss) from continuing operations		80			(71	)		—		9			897			(259	)		(334	)		304
Realized investment gains (losses), net of participating policyholders’ and minority interests		(14	)		—			—		(14	)		20			—			—			20
Income tax (expense) benefit on realized investment gains (losses)		2			—			—		2			(11	)		—			—			(11	)
Net income (loss) from continuing operations	$	68		$	(71	)	$	—	$	(3	)	$	906		$	(259	)	$	(334	)	$	313

The commutations reflected above were considered significant based on their impact to net results.

18

     

CNA FINANCIAL CORPORATION
Financial Supplement
Asbestos Summary by Policyholder Category

DECEMBER 31, 2006			Net Paid
			(Recovered)			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	$	22		$	171		12	%
Wellington		3		(1	)		14		1
Coverage in Place		37		(18	)		79		5
Fibreboard		1		—			53		4
Total with Settlement Agreements		56		3			317		22
Other Policyholders with Active Accounts
Large Asbestos Accounts		220		76			254		17
Small Asbestos Accounts		1,080		17			101		7
Total Other Policyholders		1,300		93			355		24
Assumed Reinsurance & Pools				6			141		10
Unassigned incurred but not reported (IBNR) (1)							639		44
Total		1,356	$	102		$	1,452		100	%

(1) IBNR reserves relate to potential development on accounts that have not settled and potential future claims from unidentified policyholders.

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