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): April 30, 2007

CNA FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

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

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

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

(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 9.01 FINANCIAL STATEMENTS AND EXHIBITS
SIGNATURES
Press Release
Financial Supplement

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On April 30, 2007, the registrant issued a press release and posted a financial supplement providing information on its results of operations for the first quarter 2007. 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

(d) Exhibits:

Exhibit No.	Description
99.1	CNA Financial Corporation press release, issued April 30, 2007, providing information on the first quarter 2007 results of operations.
99.2	CNA Financial Corporation financial supplement, posted April 30, 2007, providing supplemental financial information on the first quarter 2007.

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)
Dated: April 30, 2007	By:	/s/ D. Craig Mense
		(Signature)
		D. Craig Mense Executive Vice President and Chief Financial Officer

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
1st QUARTER 2007 RESULTS

CHICAGO, April 30, 2007 — CNA Financial Corporation (NYSE: CNA) today announced first quarter of 2007 results, which included the following items:

• Net operating income of $307 million.

• Net income of $296 million, or $1.09 per diluted share.

• Property & Casualty Operations combined ratio of 95.1%.

• Net operating return on equity of 13.1%.

• Book value per common share of $37.34 at March 31, 2007, as compared to $36.03 at December 31, 2006.

• On April 25, 2007, the Board of Directors declared a quarterly cash dividend of $0.10 per share.

		Results for the Three Months
	Ended March 31
($ millions)		2007			2006
Net operating income (a)		$	307		$	234
Net realized investment (losses) gains			(13	)		1
Net income from continuing operations			294			235
Net income (loss) from discontinued operations			2			(6	)
Net income		$	296		$	229

(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 2006 Form 10-K for further discussion of this measure.

Page 1 of 7

Diluted Earnings Per Share Results Available to Common Stockholders
		Results for the Three Months
	Ended March 31
		2007		2006
Net income from continuing operations (a)		$	1.08	$	0.84
Net income (loss) from discontinued operations			0.01		(0.02	)
Net income		$	1.09	$	0.82

(a) The three months ended March 31, 2006 per share results available to common stockholders from continuing operations are reduced by $19 million, or $0.07 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 Corporation on August 8, 2006.

Net operating income from continuing operations for the three months ended March 31, 2007 increased $73 million as compared with the same period in 2006. The improvement in net operating income was due to increased net investment income, favorable net prior year development in the current year as compared to unfavorable net prior year development for the same period in 2006, and lower acquisition expenses. These increases to net operating income were partially offset by increased catastrophe losses. The Property & Casualty Operations produced combined ratios of 95.1% and 96.9% in the first quarter of 2007 and 2006.

“CNA came through with a very solid first quarter,” said Stephen W. Lilienthal, Chairman and Chief Executive Officer of CNA Financial Corporation. “Along with a 31% increase in net operating income, our core Property & Casualty Operations’ combined ratio improved nearly 2 points to 95.1%. We are also very pleased to have announced a common stock dividend for the first time in more than 30 years. Financially and operationally, CNA is stronger now than it has been for many years. This action symbolizes our number one commitment – delivering shareholder value.”

Net income for the three months ended March 31, 2007 increased $67 million as compared with the same period in 2006. This increase was due to increased net operating income from continuing operations, partially offset by decreased net realized investment results.

Net realized investment results decreased by $14 million for the three months ended March 31, 2007 compared with the same period in 2006. The decrease in net realized investment results was primarily driven by an increase in interest rate related other-than-temporary impairment losses.

Page 2 of 7

Segment Results for the Three Months Ended March 31, 2007
												Corporate
	Standard			Specialty			Total P&C			Life & Group		& Other
($ millions)	Lines			Lines			Ops.			Non-Core		Non-Core		Total
Net operating income	$	178		$	118		$	296		$	2	$	9	$	307
Net realized investment (losses) gains		(18	)		(6	)		(24	)		1		10		(13	)
Net income from continuing operations	$	160		$	112		$	272		$	3	$	19	$	294

Segment Results for the Three Months Ended March 31, 2006
										Corporate
	Standard		Specialty		Total P&C		Life & Group			& Other
($ millions)	Lines		Lines		Ops.		Non-Core			Non-Core			Total
Net operating income (loss)	$	133	$	114	$	247	$	(3	)	$	(10	)	$	234
Net realized investment gains (losses)		9		2		11		(7	)		(3	)		1
Net income (loss) from continuing operations	$	142	$	116	$	258	$	(10	)	$	(13	)	$	235

Property & Casualty Operations Gross Written Premiums
	Three Months Ended March 31
($ millions)		2007		2006
Standard Lines		$	1,585	$	1,561
Specialty Lines			775		825
Total P&C Operations		$	2,360	$	2,386

Property & Casualty Operations Net Written Premiums
	Three Months Ended March 31
($ millions)		2007		2006
Standard Lines		$	1,081	$	1,110
Specialty Lines			650		648
Total P&C Operations		$	1,731	$	1,758

Page 3 of 7

Property & Casualty Calendar Year Loss Ratios
	Three Months Ended March 31
		2007			2006
Standard Lines			69.6	%		71.8	%
Specialty Lines			61.5	%		59.3	%
Total P&C Operations			66.5	%		67.2	%
Total P&C Companies (a)			75.3	%		75.2	%

(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 March 31
		2007			2006
Standard Lines			99.1	%		103.4	%
Specialty Lines			88.5	%		85.6	%
Total P&C Operations			95.1	%		96.9	%
Total P&C Companies (a)			104.5	%		106.3	%

(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 Gross Accident Year Loss Ratios
	Accident year 2007			Accident year 2006			Accident year 2006
	Evaluated at			Evaluated at			Evaluated at
	March 31, 2007			December 31, 2006			March 31, 2007
Standard Lines		63.9	%		68.0	%		67.6	%
Specialty Lines		62.9	%		60.4	%		59.6	%
Total P&C Operations		63.6	%		65.5	%		65.0	%

Property & Casualty Net Accident Year Loss Ratios
	Accident year 2007			Accident year 2006			Accident year 2006
	Evaluated at			Evaluated at			Evaluated at
	March 31, 2007			December 31, 2006			March 31, 2007
Standard Lines		69.6	%		68.1	%		67.9	%
Specialty Lines		61.3	%		60.3	%		59.5	%
Total P&C Operations		66.4	%		65.2	%		64.8	%

Page 4 of 7

Business Operating Highlights

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

• Net written premiums decreased $29 million for the first quarter of 2007 as compared with the same period in 2006. Standard Lines retention declined 1 point to 79% as compared to the same period in 2006. Rates on average decreased 3% during the first quarter of 2007.

• Net operating income increased $45 million for the first quarter of 2007 as compared with the same period in 2006. This increase was primarily driven by increased net investment income, favorable net prior year development in 2007 as compared to unfavorable net prior year development in 2006, and lower acquisition expenses. These increases to net operating income were partially offset by increased catastrophe losses of $12 million after-tax compared to the same period in 2006.

• Net income for the first quarter of 2007 increased $18 million as compared with the same period in 2006. This improvement was primarily attributable to improved net operating income, partially offset by decreased net realized investment results.

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

• Net written premiums increased $2 million for the first quarter of 2007 as compared with the same period in 2006. Specialty Lines retention decreased 2 points to 86% as compared to the same period in 2006. Rates on average decreased 4% during the first quarter of 2007.

• Net operating income increased $4 million for the first quarter of 2007 as compared with the same period in 2006. This increase was primarily driven by an increase in net investment income, partially offset by less favorable current accident year results.

• Net income decreased $4 million for the first quarter of 2007 as compared with the same period in 2006. This decrease was attributable to reduced net realized investment results, partially offset by increased net operating income.

Life and Group Non-Core primarily includes the results of the life and group lines of business that have been placed in run-off. Net earned premiums relate primarily to the group and individual long term care businesses.

• Net results for the first quarter of 2007 increased $13 million as compared with the same period in 2006. This increase was primarily due to improved net realized investment results and an increase in results for life settlement contracts.

Page 5 of 7

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

• Net results for the first quarter of 2007 increased $32 million as compared with the same period in 2006. The increase in net results was primarily due to improved net realized investment results, increased net investment income and decreased net prior year development. These favorable impacts were partially offset by an increase in interest costs on corporate debt.

Net Investment Income

Pretax net investment income for the first quarter of 2007 increased $38 million over the same period of 2006. The improvement was primarily driven by an increase in the overall invested asset base, improved period over period yields and a reduction of interest expense on funds withheld and other deposits. These increases were partially offset by a decrease in net investment income from limited partnerships and the trading portfolio. The decrease in income from the trading portfolio was largely offset by a corresponding decrease in the policyholders’ funds reserves supported by the trading portfolio.

About the Company

CNA is the country’s seventh largest commercial insurance writer and the 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 6 of 7

Conference Call and Webcast Information:

A conference call for investors and the professional investment community will be held at 10:00 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) 810-0924 or for international callers, (913) 981-4900. 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 May 7, 2007. The replay can also be accessed by dialing (888) 203-1112 or, for international callers, (719) 457-0820. The replay passcode is 3341936. Financial supplement information related to the first 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 7 of 7

EX-99.2

Exhibit 99.2

CNA Financial Corporation
Supplemental Financial Information
March 31, 2007

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
March 31, 2007

	Page
Supplemental Financial Information	i
Statements of Operations	1
Components of Net Income, Per Share Data and Return on Equity	2
Selected Balance Sheets Data and Statements of Cash Flows Data	3
Claim & Claim Adjustment Expense Reserve Rollforward	4
Investments by Segment Aggregation	5
Property & Casualty Results of Operations	6
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations	7
Property & Casualty Operations Net Accident Year Catastrophe Losses	8
Analysis of Pretax Net Investment Income	9
Statutory Data — Preliminary	10
Property & Casualty Operations Loss and LAE Ratio Analysis	11

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 N of the Consolidated Financial Statements within the 2006 Form 10-K 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

Financial Supplement

Statements of Operations

PERIOD ENDED MARCH 31	Three Months
							Fav /
							(Unfav)
(In millions)	2007			2006			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,863		$	1,869			—	%
Net investment income		608			570			7
Realized investment gains (losses), net of participating policyholders’ and minority interests		(21	)		9			N/M
Other revenues		67			53			26
Total revenues		2,517			2,501			1
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,448			1,492			3
Amortization of deferred acquisition costs		381			370			(3	)
Other operating expenses		218			257			15
Interest		34			30			(13	)
Total claims, benefits and expenses		2,081			2,149			3
Income before income tax and minority interest		436			352			24
Income tax expense		(132	)		(108	)		(22	)
Minority interest		(10	)		(9	)		(11	)
Income from continuing operations		294			235			25
Income (loss) from discontinued operations, net of tax		2			(6	)		133
Net income	$	296		$	229			29	%

1

CNA FINANCIAL CORPORATION
Financial Supplement

Components of Net Income, Per Share Data and Return on Equity

PERIOD ENDED MARCH 31	Three Months
							Fav /
							(Unfav)
(In millions, except per share data)	2007			2006			% Change
COMPONENTS OF NET INCOME
Net operating income	$	307		$	234			31	%
Net realized investment gains (losses), net of participating policyholders’ and minority interests		(13	)		1			N/M
Income from continuing operations		294			235			25
Income (loss) from discontinued operations, net of tax		2			(6	)		133
Net income	$	296		$	229			29	%
BASIC AND DILUTED EARNINGS PER SHARE
Income from continuing operations	$	1.08		$	0.84			29	%
Income (loss) from discontinued operations, net of tax		0.01			(0.02	)		150
Basic earnings per share available to common stockholders (1)	$	1.09		$	0.82			33	%
WEIGHTED AVERAGE OUTSTANDING COMMON STOCK AND COMMON STOCK EQUIVALENTS
Basic		271.3			256.0
Diluted		271.6			256.0
RETURN ON EQUITY
Net income (2)		11.9	%		10.2	%
Net operating income (3)		13.1			10.8

(1)	The three months ended March 31, 2006 per share results available to common stockholders are reduced by $19 million, or $0.07 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)	March 31, 2007		December 31, 2006
Total assets	$	61,605	$	60,283
Insurance reserves		41,067		41,080
Debt		2,156		2,156
Total liabilities		51,119		50,180
Minority interest		347		335
Accumulated other comprehensive income		563		549
Total stockholders’ equity		10,139		9,768
Book value per common share	$	37.34	$	36.03
Book value per common share excluding AOCI	$	35.26	$	34.00
Outstanding shares of common stock (in millions of shares)		271.5		271.1

THREE MONTHS ENDED
MARCH 31
(In millions)	2007			2006
Net cash flows provided by operating activities (1)	$	217		$	626
Net cash flows used by investing activities		(201	)		(307	)
Net cash flows used by financing activities		(26	)		(343	)
Net cash flows	$	(10	)	$	(24	)

(1) Operating cash flows for the three months ended March 31, 2007 and 2006 include $(18) million and $(5) million related to discontinued operations.

3

CNA FINANCIAL CORPORATION
Financial Supplement

Claim & Claim Adjustment Expense Reserve Rollforward

PERIOD ENDED MARCH 31, 2007
										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	$	14,934		$	5,529		$	20,463		$	3,134		$	6,039		$	29,636
Ceded		3,068			1,258			4,326			1,278			2,587			8,191
Net		11,866			4,271			16,137			1,856			3,452			21,445
Net incurred claim & claim adjustment expenses		738			398			1,136			102			33			1,271
Net claim & claim adjustment expense payments		(763	)		(283	)		(1,046	)		(113	)		(152	)		(1,311	)
Claim & claim adjustment expense reserves, end of period
Net		11,841			4,386			16,227			1,845			3,333			21,405
Ceded		3,095			1,328			4,423			1,240			2,442			8,105
Gross	$	14,936		$	5,714		$	20,650		$	3,085		$	5,775		$	29,510

4

CNA FINANCIAL CORPORATION
Financial Supplement

Investments by Segment Aggregation

	March 31, 2007					December 31, 2006
(In millions)	Book Value			Fair Value		Book Value			Fair Value
Property & Casualty and Corporate & Other Non-Core:
Fixed maturities — taxable	$	21,356		$	21,410	$	23,238		$	23,254
Fixed maturities — tax exempt		3,809			3,846		3,307			3,351
Equities		239			484		236			475
Short-term investments		7,553			7,554		5,329			5,330
Limited partnership investments		1,685			1,685		1,605			1,605
Other		20			24		26			26
Total investments	$	34,662		$	35,003	$	33,741		$	34,041
Net receivable/(payable)	$	(788	)			$	(6	)
Securities lending collateral		(2,914	)				(2,851	)
Life & Group Non-Core:
Fixed maturities — taxable	$	7,178		$	7,644	$	6,981		$	7,451
Fixed maturities — tax exempt		1,642			1,819		1,609			1,795
Equities		178			189		172			182
Short-term investments		292			292		380			380
Limited partnership investments		255			255		247			247
Other		1			1		—			—
Total investments	$	9,546		$	10,200	$	9,389		$	10,055
Net receivable/(payable)	$	(20	)			$	(2	)
Securities lending collateral		—					—
Total investments	$	44,208		$	45,203	$	43,130		$	44,096
Total net receivable/(payable)	$	(808	)			$	(8	)
Total securities lending collateral		(2,914	)				(2,851	)

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 $88 million and $90 million as of March 31, 2007 and December 31, 2006 where the net receivable/(payable) balance does not relate to the change in book value.

5

CNA FINANCIAL CORPORATION
Financial Supplement

Property & Casualty Results of Operations

THREE MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
MARCH 31							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2007			2006			% Change			2007			2006			% Change			2007			2006			% Change
Gross written premiums	$	1,585		$	1,561			2	%	$	775		$	825			(6	)%	$	2,360		$	2,386			(1	)%
Net written premiums		1,081			1,110			(3	)		650			648			—			1,731			1,758			(2	)
Net earned premiums		1,060			1,086			(2	)		648			628			3			1,708			1,714			—
Net investment income		259			228			14			110			87			26			369			315			17
Other revenues		23			20			15			41			33			24			64			53			21
Total operating revenues		1,342			1,334			1			799			748			7			2,141			2,082			3
Claims, benefits and expenses:
Net incurred claims and benefits		738			780			5			398			372			(7	)		1,136			1,152			1
Policyholders’ dividends		5			4			(25	)		1			1			—			6			5			(20	)
Amortization of deferred acquisition costs		242			238			(2	)		134			127			(6	)		376			365			(3	)
Other insurance related expenses		66			101			35			40			37			(8	)		106			138			23
Other expenses		25			19			(32	)		38			32			(19	)		63			51			(24	)
Total claims, benefits and expenses		1,076			1,142			6			611			569			(7	)		1,687			1,711			1
Operating income before income tax and minority interest		266			192			39			188			179			5			454			371			22
Income tax expense on operating income		(86	)		(56	)		(54	)		(62	)		(59	)		(5	)		(148	)		(115	)		(29	)
Minority interest		(2	)		(3	)		33			(8	)		(6	)		(33	)		(10	)		(9	)		(11	)
Net operating income from continuing operations		178			133			34			118			114			4			296			247			20
Realized investment gains (losses), net of participating policyholders’ and minority interests		(28	)		13			N/M			(10	)		3			N/M			(38	)		16			N/M
Income tax (expense) benefit on realized investment gains (losses)		10			(4	)		N/M			4			(1	)		N/M			14			(5	)		N/M
Net income from continuing operations	$	160		$	142			13	%	$	112		$	116			(3	)%	$	272		$	258			5	%
Financial Ratios
Loss & LAE		69.6	%		71.8	%					61.5	%		59.3	%					66.5	%		67.2	%
Acquisition expense		16.1			18.5						18.4			17.9						16.9			18.3
Underwriting expense		13.0			12.7						8.4			8.2						11.4			11.1
Dividends		0.4			0.4						0.2			0.2						0.3			0.3
Expense ratio, including dividends		29.5			31.6						27.0			26.3						28.6			29.7
Combined ratio		99.1	%		103.4	%					88.5	%		85.6	%					95.1	%		96.9	%

6

CNA FINANCIAL CORPORATION
Financial Supplement

Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations

THREE MONTHS ENDED							Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
MARCH 31	P&C Operations												Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2007			2006			2007			2006			% Change			2007			2006			% Change			2007			2006			% Change
Net earned premiums	$	1,708		$	1,714		$	156		$	163			(4	)%	$	(1	)	$	(8	)		88	%	$	1,863		$	1,869			—	%
Net investment income		369			315			161			187			(14	)		78			68			15			608			570			7
Other revenues		64			53			12			12			—			(9	)		(12	)		25			67			53			26
Total operating revenues		2,141			2,082			329			362			(9	)		68			48			42			2,538			2,492			2
Claims, benefits and expenses:
Net incurred claims and benefits		1,136			1,152			273			306			11			34			29			(17	)		1,443			1,487			3
Policyholders’ dividends		6			5			(1	)		—			N/M			—			—			N/M			5			5			—
Amortization of deferred acquisition costs		376			365			5			4			(25	)		—			1			N/M			381			370			(3	)
Other insurance related expenses		106			138			51			53			4			3			15			80			160			206			22
Other expenses		63			51			9			13			31			20			17			(18	)		92			81			(14	)
Total claims, benefits and expenses		1,687			1,711			337			376			10			57			62			8			2,081			2,149			3
Operating income (loss) before income tax and minority interest		454			371			(8	)		(14	)		43			11			(14	)		179			457			343			33
Income tax (expense) benefit on operating income (loss)		(148	)		(115	)		10			11			(9	)		(2	)		4			(150	)		(140	)		(100	)		(40	)
Minority interest		(10	)		(9	)		—			—			N/M			—			—			N/M			(10	)		(9	)		(11	)
Net operating income (loss) from continuing operations		296			247			2			(3	)		167			9			(10	)		190			307			234			31
Realized investment gains (losses), net of participating policyholders’ and minority interests		(38	)		16			1			(12	)		108			16			5			N/M			(21	)		9			N/M
Income tax (expense) benefit on realized investment gains (losses)		14			(5	)		—			5			N/M			(6	)		(8	)		25			8			(8	)		200
Net income (loss) from continuing operations	$	272		$	258		$	3		$	(10	)		130	%	$	19		$	(13	)		N/M	%	$	294		$	235			25	%

							Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
Other Financial Data	P&C Operations												Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
Property & Casualty Company Information	2007			2006			2007			2006			% Change			2007			2006			% Change			2007			2006			% Change
Gross written premiums	$	2,360		$	2,386		$	183		$	194			(6	)%	$	2		$	(1	)		N/M	%	$	2,545		$	2,579			(1	)%
Net written premiums		1,731			1,758			162			165			(2	)		(2	)		(10	)		80			1,891			1,913			(1	)
Net earned premiums		1,708			1,714			157			160			(2	)		(2	)		(8	)		75			1,863			1,866			—
Financial Ratios
Loss & LAE		66.5	%		67.2	%		N/M	%		N/M	%					N/M	%		N/M	%					75.3	%		75.2	%
Acquisition expense		16.9			18.3			N/M			N/M						N/M			N/M						16.7			18.4
Underwriting expense		11.4			11.1			N/M			N/M						N/M			N/M						12.2			12.4
Dividends		0.3			0.3			N/M			N/M						N/M			N/M						0.3			0.3
Expense ratio, including dividends		28.6			29.7			N/M			N/M						N/M			N/M						29.2			31.1
Combined ratio		95.1	%		96.9	%		N/M	%		N/M	%					N/M	%		N/M	%					104.5	%		106.3	%

7

CNA FINANCIAL CORPORATION
Financial Supplement

Property & Casualty Operations Net Accident Year Catastrophe Losses

CATASTROPHE LOSSES (PRETAX)
(In millions)	Standard Lines		Specialty Lines		P&C Operations
Three months ended March 31, 2007	$	30	$	2	$	32
Three months ended March 31, 2006	$	12	$	—	$	12

CATASTROPHE LOSSES (AFTER-TAX)
(In millions)	Standard Lines		Specialty Lines		P&C Operations
Three months ended March 31, 2007	$	20	$	1	$	21
Three months ended March 31, 2006	$	8	$	—	$	8

8

CNA FINANCIAL CORPORATION
Financial Supplement

Analysis of Pretax Net Investment Income

(In millions)	Standard Lines
	1Q06			2Q06			3Q06			4Q06			2006			1Q07
Limited partnership income	$	38		$	27		$	23		$	62		$	150		$	25
Interest on funds withheld and other deposits		(14	)		(22	)		(8	)		(3	)		(47	)		(2	)
Income (loss) from trading securities		—			—			—			—			—			—
Other investment income		204			233			224			227			888			236
Net investment income	$	228		$	238		$	239		$	286		$	991		$	259

	Specialty Lines
	1Q06			2Q06			3Q06			4Q06			2006			1Q07
Limited partnership income	$	13		$	10		$	8		$	24		$	55		$	10
Interest on funds withheld and other deposits		(2	)		(1	)		(1	)		(1	)		(5	)		—
Income (loss) from trading securities		—			—			—			—			—			—
Other investment income		76			90			94			93			353			100
Net investment income	$	87		$	99		$	101		$	116		$	403		$	110

	P&C Operations
	1Q06			2Q06			3Q06			4Q06			2006			1Q07
Limited partnership income	$	51		$	37		$	31		$	86		$	205		$	35
Interest on funds withheld and other deposits		(16	)		(23	)		(9	)		(4	)		(52	)		(2	)
Income (loss) from trading securities		—			—			—			—			—			—
Other investment income		280			323			318			320			1,241			336
Net investment income	$	315		$	337		$	340		$	402		$	1,394		$	369

	Life & Group Non-Core
	1Q06		2Q06			3Q06		4Q06		2006		1Q07
Limited partnership income	$	10	$	8		$	6	$	10	$	34	$	9
Interest on funds withheld and other deposits		—		—			—		—		—		—
Income (loss) from trading securities		42		(9	)		30		40		103		3
Other investment income		135		139			143		144		561		149
Net investment income	$	187	$	138		$	179	$	194	$	698	$	161

	Corporate & Other Non-Core
	1Q06			2Q06			3Q06			4Q06		2006			1Q07
Limited partnership income	$	13		$	8		$	9		$	19	$	49		$	8
Interest on funds withheld and other deposits		(9	)		(7	)		(1	)		1		(16	)		1
Income (loss) from trading securities		—			—			—			—		—			—
Other investment income		64			76			73			74		287			69
Net investment income	$	68		$	77		$	81		$	94	$	320		$	78

	Total Operations
	1Q06			2Q06			3Q06			4Q06			2006			1Q07
Limited partnership income	$	74		$	53		$	46		$	115		$	288		$	52
Interest on funds withheld and other deposits		(25	)		(30	)		(10	)		(3	)		(68	)		(1	)
Income (loss) from trading securities		42			(9	)		30			40			103			3
Other investment income		479			538			534			538			2,089			554
Net investment income	$	570		$	552		$	600		$	690		$	2,412		$	608

9

CNA FINANCIAL CORPORATION
Financial Supplement

Statutory Data - Preliminary

PERIOD ENDED MARCH 31	Three Months
Income Statement	(Preliminary)						Fav / (Unfav)
(In millions)	2007			2006			% Change
Property & Casualty Companies
Gross written premiums	$	2,474		$	2,391			3	%
Net written premiums		1,729			1,762			(2	)
Net earned premiums		1,546			1,544			—
Claim and claim adjustment expenses		1,198			1,204			—
Acquisition expenses		282			296			5
Underwriting expenses		221			227			3
Policyholders’ dividends		7			4			(75	)
Underwriting loss		(162	)		(187	)		13
Net investment income		496			428			16
Other expenses		(5	)		(40	)		88
Income tax expense		(102	)		(41	)		(149	)
Net realized gains (losses)		(16	)		6			N/M
Net income	$	211		$	166			27	%
Financial Ratios
Loss and LAE		77.4	%		78.0	%
Acquisition expense		16.3			16.8
Underwriting expense		12.8			12.9
Policyholders’ dividends		0.5			0.2
Expense ratio		29.6			29.9
Combined ratio		107.0	%		107.9	%
Life Companies
Earned premium	$	—		$	3

SUPPLEMENTAL STATUTORY DATA

	(Preliminary)
(In millions)	March 31, 2007		December 31, 2006
Property & Casualty Companies
Statutory surplus (1)	$	8,235	$	8,137
Life Companies
Statutory surplus	$	706	$	687

(1) Surplus includes the Property & Casualty Companies’ equity ownership of the life insurance subsidiary.

10

CNA FINANCIAL CORPORATION
Financial Supplement

Property & Casualty Operations

Loss and LAE Ratio Analysis

	Standard Lines
	2007 YTD			2006 FY			2006 FY
	Evaluated at			Evaluated at			Evaluated at
	03/31/07			12/31/06			03/31/07
Gross Accident Year		63.9	%		68.0	%		67.6	%
Impact of Reinsurance		5.7			0.1			0.3
Net Accident Year		69.6			68.1			67.9	%
Impact of Significant Commutations		—			1.1
Impact of Development and Other (1)		—			0.9
Net Calendar Year		69.6	%		70.1	%

	Specialty Lines
	2007 YTD			2006 FY			2006 FY
	Evaluated at			Evaluated at			Evaluated at
	03/31/07			12/31/06			03/31/07
Gross Accident Year		62.9	%		60.4	%		59.6	%
Impact of Reinsurance		(1.6	)		(0.1	)		(0.1	)
Net Accident Year		61.3			60.3			59.5	%
Impact of Significant Commutations		—			—
Impact of Development and Other (1)		0.2			0.2
Net Calendar Year		61.5	%		60.5	%

	P&C Operations
	2007 YTD			2006 FY			2006 FY
	Evaluated at			Evaluated at			Evaluated at
	03/31/07			12/31/06			03/31/07
Gross Accident Year		63.6	%		65.5	%		65.0	%
Impact of Reinsurance		2.8			(0.3	)		(0.2	)
Net Accident Year		66.4			65.2			64.8	%
Impact of Significant Commutations		—			0.7
Impact of Development and Other (1)		0.1			0.7
Net Calendar Year		66.5	%		66.6	%

(1) Other includes the impacts of change in allowance for uncollectible reinsurance and interest accretion.

11