8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

Date of Report (Date of earliest event reported) July 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

Press Release

Financial Supplement

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 30, 2007, the registrant issued a press release and posted a financial supplement providing information on its results of operations for the second 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 July 30, 2007, providing information on the second quarter 2007 results of operations.
99.2	CNA Financial Corporation financial supplement, posted July 30, 2007, providing supplemental financial information on the second quarter 2007.

Page 2 of 3

SIGNATURES

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

		CNA Financial Corporation
		(Registrant)
Date: July 30, 2007	By	/s/ D. Craig Mense
		(Signature)
		D. Craig Mense
		Executive Vice President and
		Chief Financial Officer

Page 3 of 3

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACT:
MEDIA:	ANALYSTS:
Charles M. Boesel, 312/822-2592	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
2nd QUARTER 2007 RESULTS

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

• Net operating income of $318 million, or $1.17 per diluted share.

• Net income of $217 million, or $0.80 per diluted share.

• Property & Casualty Operations combined ratio of 94.7%.

• Net operating return on equity of 13.2%.

• Book value per common share of $36.85 at June 30, 2007, as compared to $36.03 at December 31, 2006.

	Results for the Three Months						Results for the Six Months
	Ended June 30						Ended June 30
($ millions)	2007			2006			2007			2006
Net operating income (a)	$	318		$	305		$	625		$	539
Net realized investment losses		(91	)		(64	)		(104	)		(63	)
Net income from continuing operations		227			241			521			476
Net loss from discontinued operations		(10	)		(2	)		(8	)		(8	)
Net income	$	217		$	239		$	513		$	468

(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						Results for the Six Months
	Ended June 30						Ended June 30
	2007			2006			2007			2006
Net operating income (a)	$	1.17		$	1.11		$	2.30		$	1.95
Net realized investment losses		(0.33	)		(0.24	)		(0.38	)		(0.24	)
Net income from continuing operations	$	0.84		$	0.87		$	1.92		$	1.71
Net loss from discontinued operations		(0.04	)		(0.01	)		(0.03	)		(0.03	)
Net income	$	0.80		$	0.86		$	1.89		$	1.68

(a) The three and six months ended June 30, 2006 per share results available to common stockholders from net operating income are reduced by $19 million and $38 million, or $0.08 per share and $0.15 per share, of undeclared but accumulated preferred stock dividends. The 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 June 30, 2007 increased $13 million as compared with the same period in 2006. The improvement in net operating income was primarily due to increased net investment income, partially offset by decreased net operating results in the non-core operations. The Property & Casualty Operations produced combined ratios of 94.7% and 95.2% in the second quarters of 2007 and 2006.

“We are pleased to report another very solid quarter,” said Stephen W. Lilienthal, Chairman and Chief Executive Officer of CNA Financial Corporation. “Net operating income of $318 million was the best we have reported in over a decade. The key drivers were disciplined underwriting across a well diversified portfolio and strong investment income. All in all, the second quarter results reflect our ongoing effort to continually improve the operating fundamentals and earnings power of CNA.”

Net income for the three months ended June 30, 2007 decreased $22 million as compared with the same period in 2006. This decrease was due to higher net realized investment losses, partially offset by increased net operating income from continuing operations.

Net realized investment losses increased $27 million for the three months ended June 30, 2007 compared with the same period in 2006. The increase was primarily driven by an increase in interest rate related other-than-temporary impairment losses, which was partially offset by an increase in net realized results on derivative securities.

Net operating income from continuing operations for the six months ended June 30, 2007 increased $86 million as compared with the same period in 2006. The improvement in net operating income was due to increased net investment income and favorable net prior year development in the current year as compared to unfavorable net prior year development for the same period in 2006 in the Standard Lines and Corporate and Other Non-Core segments. These increases in net operating income were partially offset by increased catastrophe losses and decreased net operating results in the Life and Group Non-Core segment. The Property & Casualty Operations produced combined ratios of 94.9% and 96.0% for the six months ended June 30, 2007 and 2006.

Net income for the six months ended June 30, 2007 increased $45 million as compared with the same period in 2006. This increase was due to increased net operating income from continuing operations, partially offset by higher net realized investment losses.

Page 2 of 7

Net realized investment losses increased $41 million for the six months ended June 30, 2007 compared with the same period in 2006, primarily for the reasons discussed in the three month comparison above.

Segment Results for the Three Months Ended June 30, 2007
													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income (loss)	$	187		$	138		$	325		$	(13	)	$	6		$	318
Net realized investment losses		(45	)		(20	)		(65	)		(12	)		(14	)		(91	)
Net income (loss) from continuing operations	$	142		$	118		$	260		$	(25	)	$	(8	)	$	227

Segment Results for the Three Months Ended June 30, 2006
													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income	$	167		$	110		$	277		$	5		$	23		$	305
Net realized investment losses		(24	)		(9	)		(33	)		(23	)		(8	)		(64	)
Net income (loss) from continuing operations	$	143		$	101		$	244		$	(18	)	$	15		$	241

Segment Results for the Six Months Ended June 30, 2007
													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income (loss)	$	365		$	256		$	621		$	(11	)	$	15		$	625
Net realized investment losses		(63	)		(26	)		(89	)		(11	)		(4	)		(104	)
Net income (loss) from continuing operations	$	302		$	230		$	532		$	(22	)	$	11		$	521

Segment Results for the Six Months Ended June 30, 2006
													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income	$	300		$	224		$	524		$	2		$	13		$	539
Net realized investment losses		(15	)		(7	)		(22	)		(30	)		(11	)		(63	)
Net income (loss) from continuing operations	$	285		$	217		$	502		$	(28	)	$	2		$	476

Property & Casualty Operations Gross Written Premiums
	Three Months Ended June 30				Six Months Ended June 30
($ millions)	2007		2006		2007		2006
Standard Lines	$	1,679	$	1,579	$	3,264	$	3,140
Specialty Lines		692		709		1,467		1,534
Total P&C Operations	$	2,371	$	2,288	$	4,731	$	4,674

Page 3 of 7

Property & Casualty Operations Net Written Premiums
		Three Months Ended June 30							Six Months Ended June 30
($ millions)		2007			2006				2007			2006
Standard Lines		$	1,134		$	1,163			$	2,215		$	2,273
Specialty Lines			639			625				1,289			1,273
Total P&C Operations		$	1,773		$	1,788			$	3,504		$	3,546
Property & Casualty Calendar Year Loss Ratios
		Three Months Ended June 30							Six Months Ended June 30
		2007			2006				2007			2006
Standard Lines			67.4	%		67.6	%			68.5	%		69.7	%
Specialty Lines			60.9	%		61.2	%			61.2	%		60.2	%
Total P&C Operations			64.9	%		65.3	%			65.7	%		66.2	%
Total P&C Companies (a)			75.0	%		73.8	%			75.1	%		74.5	%
Property & Casualty Calendar Year Combined Ratios
	Three Months Ended June 30							Six Months Ended June 30
		2007			2006				2007			2006
Standard Lines			99.4	%		99.1	%			99.2	%		101.2	%
Specialty Lines			87.1	%		88.5	%			87.8	%		87.1	%
Total P&C Operations			94.7	%		95.2	%			94.9	%		96.0	%
Total P&C Companies (a)			105.2	%		103.1	%			104.8	%		104.7	%

(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
	June 30, 2007			December 31, 2006			June 30, 2007
Standard Lines		63.7	%		68.0	%		65.7	%
Specialty Lines		62.8	%		60.4	%		59.7	%
Total P&C Operations		63.4	%		65.5	%		63.7	%

Property & Casualty Net Accident Year Loss Ratios
	Accident year 2007			Accident year 2006			Accident year 2006
	Evaluated at			Evaluated at			Evaluated at
	June 30, 2007			December 31, 2006			June 30, 2007
Standard Lines		69.3	%		68.1	%		67.6	%
Specialty Lines		61.0	%		60.3	%		59.2	%
Total P&C Operations		66.2	%		65.2	%		64.5	%

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 second quarter of 2007 as compared with the same period in 2006. Standard Lines retention remained flat at 82% as compared to the same period in 2006. Rates on average decreased 3% during the second quarter of 2007.

• Net operating income increased $20 million for the second quarter of 2007 as compared with the same period in 2006. This increase was primarily driven by increased net investment income, partially offset by increased catastrophe losses. Catastrophe losses were $8 million after-tax in the second quarter of 2007, as compared to $3 million after-tax in the same period of 2006.

• Net income for the second quarter of 2007 decreased $1 million as compared with the same period in 2006. This decrease was primarily attributable to higher net realized investment losses, substantially offset by improved net operating income.

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

• Net written premiums increased $14 million for the second quarter of 2007 as compared with the same period in 2006. The increase was primarily driven by decreased ceded premiums due to the non-renewal of a quota share reinsurance program in May 2007. Specialty Lines retention decreased 5 points to 83% as compared to the same period in 2006. Rates on average decreased 5% during the second quarter of 2007.

• Net operating income increased $28 million for the second quarter of 2007 as compared with the same period in 2006. This increase was primarily driven by an increase in net investment income and favorable experience in the warranty line of business.

• Net income increased $17 million for the second quarter of 2007 as compared with the same period in 2006. This increase was attributable to increased net operating income, partially offset by higher net realized investment losses.

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

• Net results for the second quarter of 2007 decreased $7 million as compared with the same period in 2006. The decrease in net results was primarily due to a decline in results for life settlement contracts and unfavorable prior year loss development in the group reinsurance business.

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.

Page 5 of 7

• Net results for the second quarter of 2007 decreased $23 million as compared with the same period in 2006. Net income for the second quarter of 2006 included a release of a restructuring accrual.

Net Investment Income

Pretax net investment income for the second quarter of 2007 increased $119 million over the same period of 2006. The improvement was primarily driven by an increase in the overall invested asset base and the elimination of interest expense on funds withheld and other deposits. Also impacting net investment income was an increase in income from the trading portfolio of approximately $49 million. The increase in income from the trading portfolio was more than offset by a corresponding increase in the policyholders’ funds reserves supported by the trading portfolio.

About the Company

CNA is the country’s seventh largest commercial insurance writer and the 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) 289-0518 or for international callers, (913) 981-5532. The call will also be webcast live on the internet at http://investor.cna.com or you may go to the investor relations pages of the CNA Website (www.cna.com) for further details.

The call is available to the media, but questions will be restricted to investors and the professional investment community. A taped replay of the call will be available on CNA’s website through August 7, 2007. The replay can also be accessed by dialing (888) 203-1112 or, for international callers, (719) 457-0820. The replay passcode is 4489610. Financial supplement information related to the second quarter results is available on the investor relations pages of the CNA Website or by contacting David Adams at (312) 822-2183.

FINANCIAL MEASURES

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 reference or contain financial measures that are not in accordance with generally accepted accounting principles (GAAP). For reconciliations of non-GAAP measures to the most comparable GAAP measures, please refer to CNA’s filings with the Securities and Exchange Commission, as well as the financial supplement, available at www.cna.com.

FORWARD-LOOKING STATEMENT

This press release may include 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. Further, 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.

# # #

Page 7 of 7

EX-99.2

Exhibit 99.2

CNA Financial Corporation
Supplemental Financial Information
June 30, 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
June 30, 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 (Three Months Ended)		6
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Three Months Ended)		7
Property & Casualty Results of Operations (Six Months Ended)		8
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Six Months Ended)		9
Analysis of Pretax Net Investment Income		10
Statutory Data — Preliminary		11
Property & Casualty Operations Loss and LAE Ratio Analysis		12

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 are 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 JUNE 30	Three Months									Six Months
							Fav /									Fav /
							(Unfav)									(Unfav)
(In millions)	2007			2006			% Change			2007			2006			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,872		$	1,892			(1	)%	$	3,735		$	3,761			(1	)%
Net investment income		671			552			22			1,279			1,122			14
Realized investment losses, net of participating policyholders’ and minority interests		(139	)		(98	)		(42	)		(160	)		(89	)		(80	)
Other revenues		65			66			(2	)		132			119			11
Total revenues		2,469			2,412			2			4,986			4,913			1
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,473			1,432			(3	)		2,921			2,924			—
Amortization of deferred acquisition costs		372			372			—			753			742			(1	)
Other operating expenses		260			242			(7	)		478			499			4
Restructuring and other related charges		—			(13	)		N/M			—			(13	)		N/M
Interest		35			28			(25	)		69			58			(19	)
Total claims, benefits and expenses		2,140			2,061			(4	)		4,221			4,210			—
Income before income tax and minority interest		329			351			(6	)		765			703			9
Income tax expense		(91	)		(100	)		9			(223	)		(208	)		(7	)
Minority interest		(11	)		(10	)		(10	)		(21	)		(19	)		(11	)
Income from continuing operations		227			241			(6	)		521			476			9
Loss from discontinued operations, net of tax		(10	)		(2	)		N/M			(8	)		(8	)		—
Net income	$	217		$	239			(9	)%	$	513		$	468			10	%

1

CNA FINANCIAL CORPORATION
Financial Supplement

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

PERIOD ENDED JUNE 30	Three Months									Six Months
							Fav /									Fav /
							(Unfav)									(Unfav)
(In millions, except per share data)	2007			2006			% Change			2007			2006			% Change
COMPONENTS OF NET INCOME
Net operating income	$	318		$	305			4	%	$	625		$	539			16	%
Net realized investment losses, net of participating policyholders’ and minority interests		(91	)		(64	)		(42	)		(104	)		(63	)		(65	)
Income from continuing operations		227			241			(6	)		521			476			9
Loss from discontinued operations, net of tax		(10	)		(2	)		N/M			(8	)		(8	)		—
Net income	$	217		$	239			(9	)%	$	513		$	468			10	%
BASIC AND DILUTED EARNINGS PER SHARE
Net operating income	$	1.17		$	1.11			5	%	$	2.30		$	1.95			18	%
Net realized investment losses, net of participating policyholders’ and minority interests		(0.33	)		(0.24	)		(38	)		(0.38	)		(0.24	)		(58	)
Income from continuing operations		0.84			0.87			(3	)		1.92			1.71			12
Loss from discontinued operations, net of tax		(0.04	)		(0.01	)		N/M			(0.03	)		(0.03	)		—
Basic and diluted earnings per share available to common stockholders (1)	$	0.80		$	0.86			(7	)%	$	1.89		$	1.68			13	%
WEIGHTED AVERAGE OUTSTANDING COMMON STOCK AND COMMON STOCK EQUIVALENTS
Basic		271.6			256.0						271.5			256.0
Diluted		271.9			256.0						271.8			256.0
RETURN ON EQUITY
Net income (2)		8.6	%		10.7	%					10.4	%		10.5	%
Net operating income (3)		13.2			13.6						13.2			12.2

(1)	The three and six months ended June 30, 2006 per share results available to common stockholders from net operating income are reduced by $19 million and $38 million, or $0.08 per share and $0.15 per share, of undeclared but accumulated preferred stock dividends. The 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.
(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)	June 30, 2007		December 31, 2006
Total assets	$	60,737	$	60,283
Insurance reserves		40,938		41,080
Debt		2,156		2,156
Total liabilities		50,374		50,180
Minority interest		352		335
Accumulated other comprehensive income		235		549
Total stockholders’ equity		10,011		9,768
Book value per common share	$	36.85	$	36.03
Book value per common share excluding AOCI	$	35.98	$	34.00
Outstanding shares of common stock (in millions of shares)		271.6		271.1

THREE MONTHS ENDED
JUNE 30
(In millions)	2007			2006
Net cash flows provided by operating activities (1)	$	324		$	297
Net cash flows used by investing activities		(328	)		(196	)
Net cash flows used by financing activities		(28	)		(70	)
Net cash flows	$	(32	)	$	31

SIX MONTHS ENDED
JUNE 30
(In millions)	2007			2006
Net cash flows provided by operating activities (1)	$	541		$	923
Net cash flows used by investing activities		(529	)		(503	)
Net cash flows used by financing activities		(54	)		(413	)
Net cash flows	$	(42	)	$	7

(1) Operating cash flows for the three and six months ended June 30, 2007 include $(7) million and $(25) million related to discontinued operations. Operating cash flows for the three and six months ended June 30, 2006 include $1 million and $(4) million related to discontinued operations.

3

CNA FINANCIAL CORPORATION
Financial Supplement

Claim & Claim Adjustment Expense Reserve Rollforward

THREE MONTHS ENDED
JUNE 30, 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	$	14,936		$	5,714		$	20,650		$	3,085		$	5,775		$	29,510
Ceded		3,095			1,328			4,423			1,240			2,442			8,105
Net		11,841			4,386			16,227			1,845			3,333			21,405
Net incurred claim & claim adjustment expenses		711			401			1,112			113			42			1,267
Net claim & claim adjustment expense payments		(707	)		(299	)		(1,006	)		(97	)		(134	)		(1,237	)
Claim & claim adjustment expense reserves, end of period
Net		11,845			4,488			16,333			1,861			3,241			21,435
Ceded		2,941			1,357			4,298			1,211			2,240			7,749
Gross	$	14,786		$	5,845		$	20,631		$	3,072		$	5,481		$	29,184

SIX MONTHS ENDED
JUNE 30, 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		1,449			799			2,248			215			75			2,538
Net claim & claim adjustment expense payments		(1,470	)		(582	)		(2,052	)		(210	)		(286	)		(2,548	)
Claim & claim adjustment expense reserves, end of period
Net		11,845			4,488			16,333			1,861			3,241			21,435
Ceded		2,941			1,357			4,298			1,211			2,240			7,749
Gross	$	14,786		$	5,845		$	20,631		$	3,072		$	5,481		$	29,184

4

CNA FINANCIAL CORPORATION
Financial Supplement

Investments by Segment Aggregation

	June 30, 2007					March 31, 2007					December 31, 2006
(In millions)	Book Value			Fair Value		Book Value			Fair Value		Book Value			Fair Value
Property & Casualty and Corporate & Other Non-Core:
Fixed maturities — taxable	$	19,295		$	19,141	$	21,356		$	21,410	$	23,238		$	23,254
Fixed maturities — tax exempt		6,189			6,170		3,809			3,846		3,307			3,351
Equities		238			490		239			484		236			475
Short-term investments		6,673			6,675		7,553			7,554		5,329			5,330
Limited partnership investments		1,739			1,739		1,685			1,685		1,605			1,605
Other		20			67		20			24		26			26
Total investments	$	34,154		$	34,282	$	34,662		$	35,003	$	33,741		$	34,041
Net receivable/(payable)	$	37				$	(788	)			$	(6	)
Securities lending collateral		(3,089	)				(2,914	)				(2,851	)
Life & Group Non-Core:
Fixed maturities — taxable	$	7,204		$	7,476	$	7,178		$	7,644	$	6,981		$	7,451
Fixed maturities — tax exempt		1,675			1,767		1,642			1,819		1,609			1,795
Equities		187			195		178			189		172			182
Short-term investments		433			433		292			292		380			380
Limited partnership investments		273			273		255			255		247			247
Other		1			1		1			1		—			—
Total investments	$	9,773		$	10,145	$	9,546		$	10,200	$	9,389		$	10,055
Net receivable/(payable)	$	(30	)			$	(20	)			$	(2	)
Securities lending collateral		—					—					—
Total investments	$	43,927		$	44,427	$	44,208		$	45,203	$	43,130		$	44,096
Total net receivable/(payable)	$	7				$	(808	)			$	(8	)
Total securities lending collateral		(3,089	)				(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 $81 million, $88 million, and $90 million as of June 30, 2007, March 31, 2007 and December 31, 2006 where the net receivable/(payable) balance does not relate to 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
JUNE 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2007			2006			% Change			2007			2006			% Change			2007			2006			% Change
Gross written premiums	$	1,679		$	1,579			6	%	$	692		$	709			(2)	%	$	2,371		$	2,288			4	%
Net written premiums		1,134			1,163			(2	)		639			625			2			1,773			1,788			(1	)
Net earned premiums		1,055			1,096			(4	)		657			633			4			1,712			1,729			(1	)
Net investment income		277			238			16			120			99			21			397			337			18
Other revenues		22			13			69			47			41			15			69			54			28
Total operating revenues		1,354			1,347			1			824			773			7			2,178			2,120			3
Claims, benefits and expenses:
Net incurred claims and benefits		711			741			4			401			388			(3	)		1,112			1,129			2
Policyholders’ dividends		(4	)		4			200			1			1			—			(3	)		5			160
Amortization of deferred acquisition costs		231			238			3			137			131			(5	)		368			369			—
Other insurance related expenses		110			103			(7	)		34			41			17			144			144			—
Restructuring and other related charges		—			—			N/M			—			—			N/M			—			—			N/M
Other expenses		30			19			(58	)		33			36			8			63			55			(15	)
Total claims, benefits and expenses		1,078			1,105			2			606			597			(2	)		1,684			1,702			1
Operating income before income tax and minority interest		276			242			14			218			176			24			494			418			18
Income tax expense on operating income		(87	)		(73	)		(19	)		(72	)		(58	)		(24	)		(159	)		(131	)		(21	)
Minority interest		(2	)		(2	)		—			(8	)		(8	)		—			(10	)		(10	)		—
Net operating income from continuing operations		187			167			12			138			110			25			325			277			17
Realized investment losses, net of participating policyholders’ and minority interests		(69	)		(37	)		(86	)		(29	)		(13	)		(123	)		(98	)		(50	)		(96	)
Income tax benefit on realized investment losses		24			13			85			9			4			125			33			17			94
Net income from continuing operations	$	142		$	143			(1	)%	$	118		$	101			17	%	$	260		$	244			7	%
FINANCIAL RATIOS
Loss & LAE		67.4	%		67.6	%					60.9	%		61.2	%					64.9	%		65.3	%
Acquisition expense		18.6			18.9						17.1			19.3						18.1			19.1
Underwriting expense		13.7			12.2						8.9			7.9						11.8			10.5
Dividends		(0.3	)		0.4						0.2			0.1						(0.1	)		0.3
Expense ratio, including dividends		32.0			31.5						26.2			27.3						29.8			29.9
Combined ratio		99.4	%		99.1	%					87.1	%		88.5	%					94.7	%		95.2	%
LOSS RATIO IMPACTS
Impact of catastrophe losses on loss & LAE ratio
Pretax net accident year catastrophe losses incurred	$	12		$	5					$	—		$	1					$	12		$	6
Impact on loss & LAE ratio		1.1	%		0.5	%					—	%		0.1	%					0.7	%		0.3	%
Impact of development & other on loss & LAE ratio
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development	$	(33	)	$	5					$	(1	)	$	(2	)				$	(34	)	$	3
Prior year premium development		14			(24	)					2			2						16			(22	)
Other (1)		7			15						—			—						7			15
Total development & other	$	(12	)	$	(4	)				$	1		$	—					$	(11	)	$	(4	)
Impact of development & other on loss & LAE ratio		(1.6	)%		0.3	%					0.1	%		(0.2	)%					(1.0	)%		0.2	%

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

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
JUNE 30	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	$	1,712		$	1,729		$	157		$	159			(1	)%	$	3		$	4			(25	)%	$	1,872		$	1,892			(1	)%
Net investment income		397			337			188			138			36			86			77			12			671			552			22
Other revenues		69			54			6			24			(75	)		(10	)		(12	)		17			65			66			(2	)
Total operating revenues		2,178			2,120			351			321			9			79			69			14			2,608			2,510			4
Claims, benefits and expenses:
Net incurred claims and benefits		1,112			1,129			326			266			(23	)		37			31			(19	)		1,475			1,426			(3	)
Policyholders’ dividends		(3	)		5			1			1			—			—			—			N/M			(2	)		6			133
Amortization of deferred acquisition costs		368			369			4			4			—			—			(1	)		N/M			372			372			—
Other insurance related expenses		144			144			44			40			(10	)		10			(2	)		N/M			198			182			(9	)
Restructuring and other related charges		—			—			—			—			N/M			—			(13	)		N/M			—			(13	)		N/M
Other expenses		63			55			8			13			38			26			20			(30	)		97			88			(10	)
Total claims, benefits and expenses		1,684			1,702			383			324			(18	)		73			35			(109	)		2,140			2,061			(4	)
Operating income (loss) before income tax and minority interest		494			418			(32	)		(3	)		N/M			6			34			(82	)		468			449			4
Income tax (expense) benefit on operating income (loss)		(159	)		(131	)		19			8			138			1			(11	)		109			(139	)		(134	)		(4	)
Minority interest		(10	)		(10	)		—			—			N/M			(1	)		—			N/M			(11	)		(10	)		(10	)
Net operating income (loss) from continuing operations		325			277			(13	)		5			N/M			6			23			(74	)		318			305			4
Realized investment losses, net of participating policyholders’ and minority interests		(98	)		(50	)		(18	)		(34	)		47			(23	)		(14	)		(64	)		(139	)		(98	)		(42	)
Income tax benefit on realized investment losses		33			17			6			11			(45	)		9			6			50			48			34			41
Net income (loss) from continuing operations	$	260		$	244		$	(25	)	$	(18	)		(39	)%	$	(8	)	$	15			(153	)%	$	227		$	241			(6	)%
							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	$	2,371		$	2,288		$	166		$	208			(20	)%	$	1		$	9			(89	)%	$	2,538		$	2,505			1	%
Net written premiums		1,773			1,788			150			154			(3	)		1			3			(67	)		1,924			1,945			(1	)
Net earned premiums		1,712			1,729			155			158			(2	)		4			3			33			1,871			1,890			(1	)
FINANCIAL RATIOS
Loss & LAE		64.9	%		65.3	%		N/M	%		N/M	%					N/M	%		N/M	%					75.0	%		73.8	%
Acquisition expense		18.1			19.1			N/M			N/M						N/M			N/M						17.9			18.2
Underwriting expense		11.8			10.5			N/M			N/M						N/M			N/M						12.4			10.8
Dividends		(0.1	)		0.3			N/M			N/M						N/M			N/M						(0.1	)		0.3
Expense ratio, including dividends		29.8			29.9			N/M			N/M						N/M			N/M						30.2			29.3
Combined ratio		94.7	%		95.2	%		N/M	%		N/M	%					N/M	%		N/M	%					105.2	%		103.1	%

7

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

SIX MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
JUNE 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2007			2006			% Change			2007			2006			% Change			2007			2006			% Change
Gross written premiums	$	3,264		$	3,140			4	%	$	1,467		$	1,534			(4	)%	$	4,731		$	4,674			1	%
Net written premiums		2,215			2,273			(3	)		1,289			1,273			1			3,504			3,546			(1	)
Net earned premiums		2,115			2,182			(3	)		1,305			1,261			3			3,420			3,443			(1	)
Net investment income		536			466			15			230			186			24			766			652			17
Other revenues		45			33			36			88			74			19			133			107			24
Total operating revenues		2,696			2,681			1			1,623			1,521			7			4,319			4,202			3
Claims, benefits and expenses:
Net incurred claims and benefits		1,449			1,521			5			799			760			(5	)		2,248			2,281			1
Policyholders’ dividends		1			8			88			2			2			—			3			10			70
Amortization of deferred acquisition costs		473			476			1			271			258			(5	)		744			734			(1	)
Other insurance related expenses		176			204			14			74			78			5			250			282			11
Restructuring and other related charges		—			—			N/M			—			—			N/M			—			—			N/M
Other expenses		55			38			(45	)		71			68			(4	)		126			106			(19	)
Total claims, benefits and expenses		2,154			2,247			4			1,217			1,166			(4	)		3,371			3,413			1
Operating income before income tax and minority interest		542			434			25			406			355			14			948			789			20
Income tax expense on operating income		(173	)		(129	)		(34	)		(134	)		(117	)		(15	)		(307	)		(246	)		(25	)
Minority interest		(4	)		(5	)		20			(16	)		(14	)		(14	)		(20	)		(19	)		(5	)
Net operating income from continuing operations		365			300			22			256			224			14			621			524			19
Realized investment losses, net of participating policyholders’ and minority interests		(97	)		(24	)		N/M			(39	)		(10	)		N/M			(136	)		(34	)		N/M
Income tax benefit on realized investment losses		34			9			N/M			13			3			N/M			47			12			N/M
Net income from continuing operations	$	302		$	285			6	%	$	230		$	217			6	%	$	532		$	502			6	%
FINANCIAL RATIOS
Loss & LAE		68.5	%		69.7	%					61.2	%		60.2	%					65.7	%		66.2	%
Acquisition expense		17.3			18.7						17.8			18.6						17.5			18.7
Underwriting expense		13.4			12.4						8.6			8.2						11.6			10.8
Dividends		—			0.4						0.2			0.1						0.1			0.3
Expense ratio, including dividends		30.7			31.5						26.6			26.9						29.2			29.8
Combined ratio		99.2	%		101.2	%					87.8	%		87.1	%					94.9	%		96.0	%
LOSS RATIO IMPACTS
Impact of catastrophe losses on loss & LAE ratio
Pretax net accident year catastrophe losses incurred	$	42		$	17					$	2		$	1					$	44		$	18
Impact on loss & LAE ratio		2.0	%		0.8	%					0.1	%		—	%					1.3	%		0.5	%
Impact of development & other on loss & LAE ratio
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development	$	(20	)	$	64					$	6		$	3					$	(14	)	$	67
Prior year premium development		(13	)		(73	)					(7	)		(6	)					(20	)		(79	)
Other (1)		12			29						—			—						12			29
Total development & other	$	(21	)	$	20					$	(1	)	$	(3	)				$	(22	)	$	17
Impact of development & other on loss & LAE ratio		(0.8	)%		2.0	%					0.2	%		(0.1	)%					(0.5	)%		1.2	%

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

8

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

SIX MONTHS ENDED							Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
JUNE 30	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	$	3,420		$	3,443		$	313		$	322			(3	)%	$	2		$	(4	)		150	%	$	3,735		$	3,761			(1	)%
Net investment income		766			652			349			325			7			164			145			13			1,279			1,122			14
Other revenues		133			107			18			36			(50	)		(19	)		(24	)		21			132			119			11
Total operating revenues		4,319			4,202			680			683			—			147			117			26			5,146			5,002			3
Claims, benefits and expenses:
Net incurred claims and benefits		2,248			2,281			599			572			(5	)		71			60			(18	)		2,918			2,913			—
Policyholders’ dividends		3			10			—			1			N/M			—			—			N/M			3			11			73
Amortization of deferred acquisition costs		744			734			9			8			(13	)		—			—			N/M			753			742			(1	)
Other insurance related expenses		250			282			95			93			(2	)		13			13			—			358			388			8
Restructuring and other related charges		—			—			—			—			N/M			—			(13	)		—			—			(13	)		—
Other expenses		126			106			17			26			35			46			37			(24	)		189			169			(12	)
Total claims, benefits and expenses		3,371			3,413			720			700			(3	)		130			97			(34	)		4,221			4,210			—
Operating income (loss) before income tax and minority interest		948			789			(40	)		(17	)		(135	)		17			20			(15	)		925			792			17
Income tax (expense) benefit on operating income (loss)		(307	)		(246	)		29			19			53			(1	)		(7	)		86			(279	)		(234	)		(19	)
Minority interest		(20	)		(19	)		—			—			N/M			(1	)		—			N/M			(21	)		(19	)		(11	)
Net operating income (loss) from continuing operations		621			524			(11	)		2			N/M			15			13			15			625			539			16
Realized investment losses, net of participating policyholders’ and minority interests		(136	)		(34	)		(17	)		(46	)		63			(7	)		(9	)		22			(160	)		(89	)		(80	)
Income tax (expense) benefit on realized investment losses		47			12			6			16			(63	)		3			(2	)		N/M			56			26			115
Net income (loss) from continuing operations	$	532		$	502		$	(22	)	$	(28	)		21	%	$	11		$	2			N/M	%	$	521		$	476			9	%
							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	$	4,731		$	4,674		$	349		$	402			(13	)%	$	3		$	8			(63	)%	$	5,083		$	5,084			—	%
Net written premiums		3,504			3,546			312			319			(2	)		(1	)		(7	)		86			3,815			3,858			(1	)
Net earned premiums		3,420			3,443			312			318			(2	)		2			(5	)		140			3,734			3,756			(1	)
FINANCIAL RATIOS
Loss & LAE		65.7	%		66.2	%		N/M	%		N/M	%					N/M	%		N/M	%					75.1	%		74.5	%
Acquisition expense		17.5			18.7			N/M			N/M						N/M			N/M						17.3			18.3
Underwriting expense		11.6			10.8			N/M			N/M						N/M			N/M						12.3			11.6
Dividends		0.1			0.3			N/M			N/M						N/M			N/M						0.1			0.3
Expense ratio, including dividends		29.2			29.8			N/M			N/M						N/M			N/M						29.7			30.2
Combined ratio		94.9	%		96.0	%		N/M	%		N/M	%					N/M	%		N/M	%					104.8	%		104.7	%

9

CNA FINANCIAL CORPORATION
Financial Supplement
Analysis of Pretax Net Investment Income

(In millions)	Standard Lines
	1Q06			2Q06			3Q06			4Q06			2006			1Q07			2Q07			YTD2007
Limited partnership income	$	38		$	27		$	23		$	62		$	150		$	25		$	40		$	65
Interest on funds withheld and other deposits		(14	)		(22	)		(8	)		(3	)		(47	)		(2	)		(1	)		(3	)
Income (loss) from trading securities		—			—			—			—			—			—			—			—
Other investment income		204			233			224			227			888			236			238			474
Net investment income	$	228		$	238		$	239		$	286		$	991		$	259		$	277		$	536

	Specialty Lines
	1Q06			2Q06			3Q06			4Q06			2006			1Q07		2Q07		YTD2007
Limited partnership income	$	13		$	10		$	8		$	24		$	55		$	10	$	16	$	26
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		104		204
Net investment income	$	87		$	99		$	101		$	116		$	403		$	110	$	120	$	230

	P&C Operations
	1Q06			2Q06			3Q06			4Q06			2006			1Q07			2Q07			YTD2007
Limited partnership income	$	51		$	37		$	31		$	86		$	205		$	35		$	56		$	91
Interest on funds withheld and other deposits		(16	)		(23	)		(9	)		(4	)		(52	)		(2	)		(1	)		(3	)
Income (loss) from trading securities		—			—			—			—			—			—			—			—
Other investment income		280			323			318			320			1,241			336			342			678
Net investment income	$	315		$	337		$	340		$	402		$	1,394		$	369		$	397		$	766

	Life & Group Non-Core
	1Q06		2Q06			3Q06		4Q06		2006		1Q07		2Q07		YTD2007
Limited partnership income	$	10	$	8		$	6	$	10	$	34	$	9	$	3	$	12
Interest on funds withheld and other deposits		—		—			—		—		—		—		—		—
Income (loss) from trading securities		42		(9	)		30		40		103		3		40		43
Other investment income		135		139			143		144		561		149		145		294
Net investment income	$	187	$	138		$	179	$	194	$	698	$	161	$	188	$	349

	Corporate & Other Non-Core
	1Q06			2Q06			3Q06			4Q06		2006			1Q07		2Q07		YTD2007
Limited partnership income	$	13		$	8		$	9		$	19	$	49		$	8	$	12	$	20
Interest on funds withheld and other deposits		(9	)		(7	)		(1	)		1		(16	)		1		1		2
Income (loss) from trading securities		—			—			—			—		—			—		—		—
Other investment income		64			76			73			74		287			69		73		142
Net investment income	$	68		$	77		$	81		$	94	$	320		$	78	$	86	$	164

	Total Operations
	1Q06			2Q06			3Q06			4Q06			2006			1Q07			2Q07		YTD2007
Limited partnership income	$	74		$	53		$	46		$	115		$	288		$	52		$	71	$	123
Interest on funds withheld and other deposits		(25	)		(30	)		(10	)		(3	)		(68	)		(1	)		—		(1	)
Income (loss) from trading securities		42			(9	)		30			40			103			3			40		43
Other investment income		479			538			534			538			2,089			554			560		1,114
Net investment income	$	570		$	552		$	600		$	690		$	2,412		$	608		$	671	$	1,279

10

CNA FINANCIAL CORPORATION
Financial Supplement
Statutory Data — Preliminary

PERIOD ENDED JUNE 30	Three Months									Six Months
Income Statement	(Preliminary)						Fav / (Unfav)			(Preliminary)						Fav / (Unfav)
(In millions)	2007			2006			% Change			2007			2006			% Change
Property & Casualty Companies
Gross written premiums	$	2,550		$	2,415			6	%	$	5,024		$	4,805			5	%
Net written premiums		1,792			1,859			(4	)		3,521			3,621			(3	)
Net earned premiums		1,573			1,631			(4	)		3,119			3,175			(2	)
Claim and claim adjustment expenses		1,192			1,213			2			2,389			2,418			1
Acquisition expenses		309			334			7			591			630			6
Underwriting expenses		215			231			7			437			457			4
Policyholders’ dividends		5			6			17			12			10			(20	)
Underwriting loss		(148	)		(153	)		3			(310	)		(340	)		9
Net investment income (1)		636			470			35			1,132			898			26
Other expenses		(12	)		(38	)		68			(17	)		(78	)		78
Income tax expense		(97	)		(126	)		23			(197	)		(168	)		(17	)
Net realized losses		(185	)		(56	)		N/M			(202	)		(49	)		N/M
Net income	$	194		$	97			100	%	$	406		$	263			54	%
Financial Ratios
Loss and LAE		75.8	%		74.4	%					76.6	%		76.2	%
Acquisition expense		17.3			18.0						16.8			17.4
Underwriting expense		11.9			12.3						14.0			12.6
Policyholders’ dividends		0.3			0.4						0.4			0.3
Expense ratio		29.5			30.7						31.2			30.3
Combined ratio		105.3	%		105.1	%					107.8	%		106.5	%
Life Company
Earned premium	$	1		$	2					$	1		$	5

SUPPLEMENTAL STATUTORY DATA

	(Preliminary)
(In millions)	June 30, 2007		December 31, 2006
Property & Casualty Companies
Statutory surplus (2)	$	8,380	$	8,137
Life Company
Statutory surplus	$	463	$	687

(1)	The three and six months ended June 30, 2007 include $143 million of declared dividends from Continental Casualty Company’s (CCC) life subsidiary, Continental Assurance Company (CAC). Additionally, CAC returned capital to CCC of $107 million during the second quarter of 2007.
(2)	Surplus includes the Property & Casualty Companies’ equity ownership of the life insurance subsidiary.

11

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
	06/30/07			12/31/06			06/30/07
Gross Accident Year		63.7	%		68.0	%		65.7	%
Impact of Reinsurance		5.6			0.1			1.9
Net Accident Year		69.3			68.1			67.6	%
Impact of Significant Commutations		—			1.1
Impact of Development and Other (1)		(0.8	)		0.9
Net Calendar Year		68.5	%		70.1	%

	Specialty Lines
	2007 YTD			2006 FY			2006 FY
	Evaluated at			Evaluated at			Evaluated at
	06/30/07			12/31/06			06/30/07
Gross Accident Year		62.8	%		60.4	%		59.7	%
Impact of Reinsurance		(1.8	)		(0.1	)		(0.5	)
Net Accident Year		61.0			60.3			59.2	%
Impact of Significant Commutations		—			—
Impact of Development and Other (1)		0.2			0.2
Net Calendar Year		61.2	%		60.5	%

	P&C Operations
	2007 YTD			2006 FY			2006 FY
	Evaluated at			Evaluated at			Evaluated at
	06/30/07			12/31/06			06/30/07
Gross Accident Year		63.4	%		65.5	%		63.7	%
Impact of Reinsurance		2.8			(0.3	)		0.8
Net Accident Year		66.2			65.2			64.5	%
Impact of Significant Commutations		—			0.7
Impact of Development and Other (1)		(0.5	)		0.7
Net Calendar Year		65.7	%		66.6	%

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

12