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)     February 11, 2008

CNA FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

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

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

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

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

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

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

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

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

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

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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 11, 2008, the registrant issued a press release and posted a financial supplement on its website providing information on its results of operations for the fourth quarter and year-ended 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 February 11, 2008, providing information on the fourth quarter and year-ended 2007 results of operations.
99.2	CNA Financial Corporation financial supplement, posted on its website February 11, 2008, providing supplemental financial information on the fourth quarter and year-ended 2007.

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SIGNATURES

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

CNA Financial Corporation  

(Registrant) 

Date: February 11, 2008	By	/s/ D. Craig Mense
		(Signature)
		D. Craig Mense Executive Vice President and Chief Financial Officer

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACT:
MEDIA:	ANALYSTS:
Katrina W. Parker, 312/822-5167	Nancy M. Bufalino, 312/822-7757
Sarah J. Pang, 312/822-6394	Marie Hotza, 312/822-4278
	David C. Adams, 312/822-2183

CNA FINANCIAL ANNOUNCES
4th QUARTER AND FULL-YEAR 2007 RESULTS

CHICAGO, February 11, 2008 — CNA Financial Corporation (NYSE: CNA) today announced fourth quarter and full-year 2007 results, which included the following items:

• Net operating income for the fourth quarter of 2007 of $223 million, or $0.82 per diluted share.

• Net income for the fourth quarter of 2007 of $164 million, or $0.60 per diluted share.

• Net operating income for the full-year 2007 of $1.06 billion, or $3.90 per diluted share.

• Net income for the full-year 2007 of $851 million, or $3.13 per diluted share.

• Property & Casualty Operations combined ratios for the fourth quarter and full-year 2007 of 98.0% and 94.8%.

• Net operating return on equity for the fourth quarter and full-year 2007 of 9.0% and 11.0%.

• Book value per common share of $37.36 at December 31, 2007, as compared to $36.03 at December 31, 2006.

		Results for the Three Months							Results for the Year
	Ended December 31							Ended December 31
($ millions)		2007			2006				2007			2006
Net operating income (a)		$	223		$	248			$	1,060		$	1,070
Net realized investment (losses) gains			(61	)		108				(203	)		67
Net income from continuing operations			162			356				857			1,137
Net income (loss) from discontinued operations			2			(27	)			(6	)		(29	)
Net income		$	164		$	329			$	851		$	1,108

(a) Management utilizes the net operating income financial measure to monitor the Company’s operations. Please refer to Note K of the Condensed Consolidated Financial Statements within the September 30, 2007 Form 10-Q for further discussion of this measure.

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Diluted Earnings Per Share Available to Common Stockholders
		Results for the Three Months							Results for the Year
	Ended December 31							Ended December 31
		2007			2006				2007			2006
Net operating income (a)		$	0.82		$	0.91			$	3.90		$	3.91
Net realized investment (losses) gains			(0.23	)		0.41				(0.75	)		0.25
Net income from continuing operations			0.59			1.32				3.15			4.16
Net income (loss) from discontinued operations			0.01			(0.10	)			(0.02	)		(0.11	)
Net income		$	0.60		$	1.22			$	3.13		$	4.05

(a) The year ended December 31, 2006 per share results available to common stockholders from net operating income are reduced by $46 million, or $0.17 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 December 31, 2007 decreased $25 million as compared with the same period in 2006. Net operating income for our core Property & Casualty operations decreased $6 million, while net operating results for our Non-Core operations decreased $19 million. This overall decrease was primarily due to lower net investment income and decreased current accident year underwriting results in our Standard Lines and Specialty Lines segments. These decreases were largely offset by favorable net prior year development in the fourth quarter of 2007 as compared to unfavorable net prior year development for the same period in 2006. The Property & Casualty operations produced combined ratios of 98.0% and 99.0% in the fourth quarters of 2007 and 2006.

“CNA is coming off two consecutive years of very strong performance,” said Stephen W. Lilienthal, Chairman and Chief Executive Officer of CNA Financial Corporation. “In 2007, we delivered another very solid earnings year, virtually matching the record operating earnings of 2006. Book value continued to increase, our core Property & Casualty operations performed well in the face of a softening market, and we continued to manage expenses. In line with our solid financial results, CNA paid a dividend to common shareholders for the first time in more than 30 years. Overall, CNA had another strong year, and is well positioned to continue to manage through the market cycle as a strong competitor.”

Net income for the three months ended December 31, 2007 decreased $165 million as compared with the same period in 2006. This decrease was primarily due to net realized investment losses in the fourth quarter of 2007 versus gains for the same period in 2006.

Net realized investment results decreased $169 million for the three months ended December 31, 2007 compared with the same period in 2006. This decrease was primarily driven by increased impairment losses caused by the decline in credit market conditions including credit spread widening and exposures to sub-prime collateral in our fixed income securities. Other-than-temporary impairment losses were $188 million after-tax for the three months ended December 31, 2007 as compared to $56 million after-tax in the same period of 2006.

Net operating income from continuing operations for the year ended December 31, 2007 decreased $10 million as compared with the same period in 2006. Net operating income for our core Property & Casualty operations increased $140 million, which was offset by a $150 million decrease in our Non-Core segments. The decrease in net operating income was primarily due to an after-tax loss of $108 million related to a run-off book of business in the Life & Group Non-Core segment and lower current accident year underwriting results in our Standard Lines and Specialty Lines segments. These unfavorable impacts were partially offset by favorable net

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prior year development in 2007 as compared to unfavorable net prior year development in 2006 and increased net investment income. The Property & Casualty operations produced combined ratios of 94.8% and 96.4% for the years ended December 31, 2007 and 2006.

Net income for the year ended December 31, 2007 decreased $257 million as compared with the same period in 2006, primarily due to net realized investment losses in 2007 versus gains in 2006. Net realized investment results decreased $270 million for the year ended December 31, 2007 compared with the same period in 2006. This decrease was primarily driven by increased impairment losses caused by the decline in credit market conditions for fixed income securities. Other-than-temporary impairment losses were $481 million after-tax for the year ended December 31, 2007 as compared to $112 million after-tax in 2006.

As a result of CNA’s realignment of management responsibilities in the fourth quarter of 2007, CNA has revised its property and casualty segments as if the current segment changes occurred as of the beginning of the earliest period presented. Standard Lines includes standard property and casualty coverages sold to small businesses and middle market entities and organizations in the U.S. primarily through an independent agency distribution system. Standard Lines also includes commercial insurance and risk management products sold to large corporations in the U.S. primarily through insurance brokers. Specialty Lines provides a broad array of professional, financial and specialty property and casualty products and services, including excess and surplus lines, primarily through insurance brokers and managing general underwriters. Specialty Lines also includes insurance coverages sold globally through our foreign operations (CNA Global). Previously, excess and surplus lines and CNA Global were included in Standard Lines.

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Segment Results for the Three Months Ended December 31, 2007
													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income (loss)	$	124		$	145		$	269		$	(17	)	$	(29	)	$	223
Net realized investment losses		(21	)		(12	)		(33	)		(19	)		(9	)		(61	)
Net income (loss) from continuing operations	$	103		$	133		$	236		$	(36	)	$	(38	)	$	162
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)	$	76		$	199		$	275		$	(1	)	$	(26	)	$	248
Net realized investment gains		51			28			79			4			25			108
Net income (loss) from continuing operations	$	127		$	227		$	354		$	3		$	(1	)	$	356
Segment Results for the Year Ended December 31, 2007
													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income (loss)	$	602		$	619		$	1,221		$	(159	)	$	(2	)	$	1,060
Net realized investment losses		(97	)		(53	)		(150	)		(36	)		(17	)		(203	)
Net income (loss) from continuing operations	$	505		$	566		$	1,071		$	(195	)	$	(19	)	$	857
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)	$	446		$	635		$	1,081		$	(14	)	$	3		$	1,070
Net realized investment gains (losses)		48			25			73			(33	)		27			67
Net income (loss) from continuing operations	$	494		$	660		$	1,154		$	(47	)	$	30		$	1,137

Property & Casualty Operations Gross Written Premiums
	Three Months Ended December 31					Year Ended December 31
($ millions)		2007		2006			2007		2006
Standard Lines		$	824	$	918		$	3,620	$	3,968
Specialty Lines			1,292		1,324			5,420		5,319
Total P&C Operations		$	2,116	$	2,242		$	9,040	$	9,287

Property & Casualty Operations Net Written Premiums
	Three Months Ended December 31					Year Ended December 31
($ millions)		2007		2006			2007		2006
Standard Lines		$	743	$	833		$	3,267	$	3,598
Specialty Lines			887		854			3,506		3,431
Total P&C Operations		$	1,630	$	1,687		$	6,773	$	7,029

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Property & Casualty Calendar Year Loss Ratios
	Three Months Ended December 31						Year Ended December 31
	2007			2006			2007			2006
Standard Lines		71.2	%		79.0	%		67.4	%		72.5	%
Specialty Lines		63.0	%		56.8	%		62.8	%		60.4	%
Total P&C Operations		67.0	%		68.0	%		65.1	%		66.6	%
Total P&C Companies (a)		79.8	%		79.6	%		77.7	%		75.7	%
Property & Casualty Calendar Year Combined Ratios
	Three Months Ended December 31						Year Ended December 31
	2007			2006			2007			2006
Standard Lines		105.4	%		112.3	%		100.1	%		104.6	%
Specialty Lines		91.1	%		85.2	%		89.7	%		87.9	%
Total P&C Operations		98.0	%		99.0	%		94.8	%		96.4	%
Total P&C Companies (a)		111.2	%		111.3	%		107.9	%		106.0	%

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

Property & Casualty Operations Gross Accident Year Loss Ratios
	Accident Year 2007			Accident Year 2006			Accident Year 2006
	Evaluated at			Evaluated at			Evaluated at
	December 31, 2007			December 31, 2006			December 31, 2007
Standard Lines		66.6	%		69.8	%		67.6	%
Specialty Lines		59.2	%		62.2	%		59.3	%
Total P&C Operations		62.2	%		65.5	%		62.8	%
Property & Casualty Operations Net Accident Year Loss Ratios
	Accident Year 2007			Accident Year 2006			Accident Year 2006
	Evaluated at			Evaluated at			Evaluated at
	December 31, 2007			December 31, 2006			December 31, 2007
Standard Lines		70.1	%		68.0	%		65.9	%
Specialty Lines		63.8	%		62.3	%		60.9	%
Total P&C Operations		66.9	%		65.2	%		63.4	%

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Business Operating Highlights

Standard Lines works with an independent agency distribution system and network of brokers to market a broad range of property and casualty insurance products and services primarily to small, middle-market and large businesses and organizations domestically.

• Net written premiums decreased $90 million for the fourth quarter of 2007 as compared with the same period in 2006. Standard Lines retention increased 1 point to 81% as compared to the same period in 2006. Rates on average decreased 4% during the fourth quarter of 2007.

• Net operating income increased $48 million for the fourth quarter of 2007 as compared with the same period in 2006. This increase was primarily driven by favorable net prior year development in 2007 as compared to unfavorable net prior year development in 2006, partially offset by decreased current accident year underwriting results and decreased net investment income.

• Net income for the fourth quarter of 2007 decreased $24 million as compared with the same period in 2006. This decrease was primarily attributable to decreased net realized investment results, partially offset by improved net operating income.

Specialty Lines provides professional, financial and specialty property and casualty products and services, both domestically and abroad, through a network of brokers, managing general underwriters and independent agencies.

• Net written premiums increased $33 million for the fourth quarter of 2007 as compared with the same period in 2006. Premiums written were favorably impacted by the non-renewal of a reinsurance program in May 2007. Specialty Lines retention decreased 3 points to 82% as compared to the same period in 2006. Rates on average decreased 5% during the fourth quarter of 2007.

• Net operating income decreased $54 million for the fourth quarter of 2007 as compared with the same period in 2006, primarily driven by decreased current accident year underwriting results and decreased favorable net prior year development.

• Net income decreased $94 million for the fourth quarter of 2007 as compared with the same period in 2006. This decrease was attributable to decreases in net realized investment results and decreased net operating income.

Life & 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 fourth quarter of 2007 decreased $39 million as compared with the same period in 2006. This decrease was primarily attributable to a decrease in net realized investment results and decreased results related to the pension deposit business and life settlement contracts.

Corporate & Other Non-Core primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business primarily in run-off, including CNA Re. This segment also includes the results related to the centralized adjusting and settlement of asbestos and environmental pollution.

• Net loss for the fourth quarter of 2007 increased $37 million as compared with the same period in 2006. The increase in net loss was primarily due to net realized investment losses in the fourth quarter of 2007 versus gains for the same period in 2006.

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Net Investment Income

Pretax net investment income for the fourth quarter of 2007 decreased $116 million over the same period of 2006. This decrease was primarily driven by decreases in limited partnership income and results from the trading portfolio. The decreased results from the trading portfolio were largely offset by a corresponding decrease in the policyholders’ funds reserves supported by the trading portfolio. These unfavorable impacts were partially offset by an increase in income from fixed maturity securities.

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.

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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) 277-7138, or for international callers, (913) 981-5542. 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 through February 18, 2008 by dialing (888) 203-1112, or for international callers, (719) 457-0820. The replay passcode is 9357954. The replay will also be available on CNA’s website. Financial supplement information related to the fourth quarter and full-year 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. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally 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.

# # #

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EX-99.2

Exhibit 99.2

CNA Financial Corporation
Supplemental Financial Information
December 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
December 31, 2007

	Page
Definitions and Presentation	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
Mortgage and Asset-Backed Holdings	6-9
Property & Casualty Results of Operations (Three Months Ended)	10
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Three Months Ended)	11
Property & Casualty Results of Operations (Twelve Months Ended)	12
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Twelve Months Ended)	13
Analysis of Pretax Net Investment Income	14
Statutory Data — Preliminary	15
Property & Casualty Operations Loss and LAE Ratio Analysis	16

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 primarily includes certain corporate expenses including interest on corporate debt and the results of certain property and casualty business primarily in run-off, including CNA Re. This segment also includes the results related to the centralized adjusting and settlement of asbestos and environmental pollution claims (A&E).

• 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 K of the Condensed Consolidated Financial Statements within the 2007 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 employ strategies to generate returns through investing 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

SEGMENT CHANGES

CNA’s (the Company) core property and casualty commercial insurance operations are reported in two business segments: Standard Lines and Specialty Lines. As a result of the Company’s realignment of management responsibilities in the fourth quarter of 2007, the Company has revised its property and casualty segments as if the current segment changes occurred as of the beginning of the earliest period presented. Standard Lines includes standard property and casualty coverages sold to small businesses and middle market entities and organizations in the U.S. primarily through an independent agency distribution system. Standard Lines also includes commercial insurance and risk management products sold to large corporations in the U.S. primarily through insurance brokers. Specialty Lines provides a broad array of professional, financial and specialty property and casualty products and services, including excess and surplus lines, primarily through insurance brokers and managing general underwriters. Specialty Lines also includes insurance coverages sold globally through the Company’s foreign operations (CNA Global). Previously, excess and surplus lines and CNA Global were included in Standard Lines.

Standard Lines previously included other revenues and expenses related to claim services provided by CNA ClaimPlus, Inc. to other units within the Standard Lines segment because these revenues and expenses were eliminated at the consolidated level. These amounts are now eliminated within Standard Lines for all periods presented.

i

CNA FINANCIAL CORPORATION
Financial Supplement
Statements of Operations

PERIOD ENDED DECEMBER 31	Three Months									Twelve Months
							Fav /									Fav /
							(Unfav)									(Unfav)
(In millions)	2007			2006			% Change			2007			2006			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,867		$	1,899			(2	)%	$	7,484		$	7,603			(2	)%
Net investment income		574			690			(17	)		2,433			2,412			1
Realized investment gains (losses), net of participating policyholders’ and minority interests		(94	)		154			(161	)		(311	)		86			N/M
Other revenues		68			100			(32	)		279			275			1
Total revenues		2,415			2,843			(15	)		9,885			10,376			(5	)
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,513			1,601			5			6,009			6,047			1
Amortization of deferred acquisition costs		383			402			5			1,520			1,534			1
Other operating expenses		272			304			11			994			1,027			3
Restructuring and other related charges		—			—			N/M			—			(13	)		N/M
Interest		36			38			5			140			131			(7	)
Total claims, benefits and expenses		2,204			2,345			6			8,663			8,726			1
Income before income tax and minority interest		211			498			(58	)		1,222			1,650			(26	)
Income tax expense		(38	)		(130	)		71			(317	)		(469	)		32
Minority interest		(11	)		(12	)		8			(48	)		(44	)		(9	)
Income from continuing operations		162			356			(54	)		857			1,137			(25	)
Income (loss) from discontinued operations, net of tax		2			(27	)		107			(6	)		(29	)		79
Net income	$	164		$	329			(50	)%	$	851		$	1,108			(23	)%

1

CNA FINANCIAL CORPORATION
Financial Supplement
Components of Net Income, 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)	2007			2006			% Change			2007			2006			% Change
COMPONENTS OF NET INCOME
Net operating income	$	223		$	248			(10	)%	$	1,060		$	1,070			(1	)%
Net realized investment gains (losses), net of participating policyholders’ and minority interests		(61	)		108			(156	)		(203	)		67			N/M
Income from continuing operations		162			356			(54	)		857			1,137			(25	)
Income (loss) from discontinued operations, net of tax		2			(27	)		107			(6	)		(29	)		79
Net income	$	164		$	329			(50	)%	$	851		$	1,108			(23	)%
BASIC EARNINGS PER SHARE
Net operating income	$	0.82		$	0.91			(10	)%	$	3.90		$	3.91			—	%
Net realized investment gains (losses), net of participating policyholders’ and minority interests		(0.23	)		0.42			(155	)		(0.75	)		0.26			N/M
Income from continuing operations		0.59			1.33			(56	)		3.15			4.17			(24	)
Income (loss) from discontinued operations, net of tax		0.01			(0.10	)		110			(0.02	)		(0.11	)		82
Basic earnings per share available to common stockholders (1)	$	0.60		$	1.23			(51	)%	$	3.13		$	4.06			(23	)%
DILUTED EARNINGS PER SHARE
Net operating income	$	0.82		$	0.91			(10	)%	$	3.90		$	3.91			—	%
Net realized investment gains (losses), net of participating policyholders’ and minority interests		(0.23	)		0.41			(156	)		(0.75	)		0.25			N/M
Income from continuing operations		0.59			1.32			(55	)		3.15			4.16			(24	)
Income (loss) from discontinued operations, net of tax		0.01			(0.10	)		110			(0.02	)		(0.11	)		82
Diluted earnings per share available to common stockholders (1)	$	0.60		$	1.22			(51	)%	$	3.13		$	4.05			(23	)%
WEIGHTED AVERAGE OUTSTANDING COMMON STOCK AND COMMON STOCK EQUIVALENTS
Basic		271.6			271.0						271.5			262.1
Diluted		271.8			271.3						271.8			262.3
RETURN ON EQUITY
Net income (2)		6.5	%		13.8	%					8.5	%		11.8	%
Net operating income (3)		9.0			11.0						11.0			12.0

(1)	The twelve months ended December 31, 2006 per share results available to common stockholders from net operating income are reduced by $46 million, or $0.17 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)	December 31, 2007		December 31, 2006
Total assets	$	56,732	$	60,283
Insurance reserves		40,222		41,080
Debt		2,157		2,156
Total liabilities		46,197		50,180
Minority interest		385		335
Accumulated other comprehensive income		103		549
Total stockholders’ equity		10,150		9,768
Book value per common share	$	37.36	$	36.03
Book value per common share excluding AOCI	$	36.98	$	34.00
Outstanding shares of common stock (in millions of shares)		271.7		271.1

THREE MONTHS ENDED
DECEMBER 31
(In millions)	2007			2006
Net cash flows provided by operating activities (1)	$	526		$	467
Net cash flows used by investing activities		(415	)		(156	)
Net cash flows used by financing activities		(102	)		(323	)
Net cash flows from operating, investing and financing activities	$	9		$	(12	)
TWELVE MONTHS ENDED
DECEMBER 31
(In millions)	2007			2006
Net cash flows provided by operating activities (1)	$	1,239		$	2,250
Net cash flows used by investing activities		(1,082	)		(1,646	)
Net cash flows used by financing activities		(185	)		(605	)
Net cash flows from operating, investing and financing activities	$	(28	)	$	(1	)

(1) Operating cash flows for the three and twelve months ended December 31, 2007 include $3 million and $(13) million related to discontinued operations. Operating cash flows for the three and twelve months ended December 31, 2006 include $(11) million and $(11) million related to discontinued operations.

3

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

THREE MONTHS ENDED
DECEMBER 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	$	12,160		$	8,569		$	20,729		$	3,097		$	5,166		$	28,992
Ceded		2,229			2,084			4,313			1,219			2,033			7,565
Net		9,931			6,485			16,416			1,878			3,133			21,427
Net incurred claim & claim adjustment expenses		594			560			1,154			102			108			1,364
Net claim & claim adjustment expense payments		(605	)		(443	)		(1,048	)		(102	)		(127	)		(1,277	)
Foreign currency translation adjustment		—			15			15			2			1			18
Claim & claim adjustment expense reserves, end of period
Net		9,920			6,617			16,537			1,880			3,115			21,532
Ceded		2,128			1,786			3,914			1,147			1,995			7,056
Gross	$	12,048		$	8,403		$	20,451		$	3,027		$	5,110		$	28,588
TWELVE MONTHS ENDED
DECEMBER 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	$	12,517		$	7,946		$	20,463		$	3,134		$	6,039		$	29,636
Ceded		2,403			1,923			4,326			1,278			2,587			8,191
Net		10,114			6,023			16,137			1,856			3,452			21,445
Net incurred claim & claim adjustment expenses		2,279			2,190			4,469			596			225			5,290
Net claim & claim adjustment expense payments		(2,474	)		(1,677	)		(4,151	)		(574	)		(572	)		(5,297	)
Foreign currency translation adjustment		1			81			82			2			10			94
Claim & claim adjustment expense reserves, end of period
Net		9,920			6,617			16,537			1,880			3,115			21,532
Ceded		2,128			1,786			3,914			1,147			1,995			7,056
Gross	$	12,048		$	8,403		$	20,451		$	3,027		$	5,110		$	28,588

4

CNA FINANCIAL CORPORATION
Financial Supplement
Investments by Segment Aggregation

	December 31, 2007					September 30, 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	$	19,351		$	18,951	$	20,097		$	19,790	$	23,238		$	23,254
Fixed maturities — tax exempt		5,815			5,810		4,861			4,864		3,307			3,351
Equities		254			459		234			492		236			475
Short-term investments		4,385			4,387		6,692			6,695		5,329			5,330
Limited partnership investments		1,877			1,877		1,762			1,762		1,605			1,605
Other		8			45		19			42		26			26
Total investments	$	31,690		$	31,529	$	33,665		$	33,645	$	33,741		$	34,041
Net receivable/(payable)	$	(265	)			$	(2,458	)			$	(6	)
Securities lending collateral		(53	)				(82	)				(2,851	)
Life & Group Non-Core:
Fixed maturities — taxable	$	7,422		$	7,631	$	7,438		$	7,712	$	6,981		$	7,451
Fixed maturities — tax exempt		1,800			1,865		1,711			1,830		1,609			1,795
Equities		112			109		112			116		172			182
Short-term investments		290			290		277			277		380			380
Limited partnership investments		337			337		331			331		247			247
Other		1			1		1			1		—			—
Total investments	$	9,962		$	10,233	$	9,870		$	10,267	$	9,389		$	10,055
Net receivable/(payable)	$	1				$	11				$	(2	)
Securities lending collateral		—					—					—
Total investments	$	41,652		$	41,762	$	43,535		$	43,912	$	43,130		$	44,096
Total net receivable/(payable)	$	(264	)			$	(2,447	)			$	(8	)
Total securities lending collateral		(53	)				(82	)				(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 $53 million, $53 million, and $90 million as of December 31, 2007, September 30, 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
Mortgage and Asset-Backed Holdings
As of December 31, 2007
(In millions)

Invested Assets Fair Value By Segment

	P&C Operations and				Life & Group
	Corporate & Other Non-Core				Non-Core				Total Operations
MBS/CMO/ABS/CDO	$	10,368	24.8	%	$	1,072	2.6	%	$	11,440	27.4	%
Other taxable fixed maturities		8,583	20.6			6,559	15.7			15,142	36.3
Tax exempt fixed maturities		5,810	13.9			1,865	4.4			7,675	18.3
All other		6,768	16.2			737	1.8			7,505	18.0
Total investments	$	31,529	75.5	%	$	10,233	24.5	%	$	41,762	100.0	%

Invested Assets Book Value By Segment

	P&C Operations and				Life & Group
	Corporate & Other Non-Core				Non-Core				Total Operations
MBS/CMO/ABS/CDO	$	10,710	25.7	%	$	1,097	2.6	%	$	11,807	28.3	%
Other taxable fixed maturities		8,641	20.7			6,325	15.2			14,966	35.9
Tax exempt fixed maturities		5,815	14.0			1,800	4.3			7,615	18.3
All other		6,524	15.7			740	1.8			7,264	17.5
Total investments	$	31,690	76.1	%	$	9,962	23.9	%	$	41,652	100.0	%

MBS/CMO/ABS/CDO Fair Value Distribution

																					% of Total
	MBS				CMO				ABS				CDO				Total				Investments
U.S. Government Agencies	$	1,212	10.6	%	$	1,460	12.8	%	$	—	—	%	$	—	—	%	$	2,672	23.4	%		6.4	%
AAA		—	—			5,297	46.3			2,063	18.0			27	0.2			7,387	64.5			17.7
AA		—	—			35	0.3			309	2.7			80	0.7			424	3.7			1.0
A		—	—			56	0.5			206	1.8			222	1.9			484	4.2			1.2
BBB		—	—			13	0.1			396	3.5			20	0.2			429	3.8			1.0
<BBB & Equity Tranches		—	—			1	—			28	0.3			15	0.1			44	0.4			0.1
Total MBS/CMO/ABS/CDO	$	1,212	10.6	%	$	6,862	60.0	%	$	3,002	26.3	%	$	364	3.1	%	$	11,440	100.0	%		27.4	%
Sub-prime (Included above) (1)	$	—			$	13			$	1,064			$	28			$	1,105	9.7	%		2.6	%
Alt-A (Included above)	$	—			$	1,142			$	3			$	51			$	1,196	10.5	%		2.9	%

MBS/CMO/ABS/CDO Book Value Distribution

																					% of Total
	MBS				CMO				ABS				CDO				Total				Investments
U.S. Government Agencies	$	1,217	10.3	%	$	1,477	12.5	%	$	—	—	%	$	—	—	%	$	2,694	22.8	%		6.5	%
AAA		—	—			5,385	45.6			2,093	17.7			28	0.2			7,506	63.5			18.0
AA		—	—			41	0.4			379	3.2			93	0.8			513	4.4			1.2
A		—	—			55	0.5			246	2.1			311	2.6			612	5.2			1.5
BBB		—	—			15	0.1			399	3.4			22	0.2			436	3.7			1.0
<BBB & Equity Tranches		—	—			2	—			29	0.3			15	0.1			46	0.4			0.1
Total MBS/CMO/ABS/CDO	$	1,217	10.3	%	$	6,975	59.1	%	$	3,146	26.7	%	$	469	3.9	%	$	11,807	100.0	%		28.3	%
Sub-prime (Included above) (1)	$	—			$	13			$	1,162			$	39			$	1,214	10.3	%		2.9	%
Alt-A (Included above)	$	—			$	1,187			$	3			$	52			$	1,242	10.5	%		3.0	%

(1)	In addition to the sub-prime exposure in total MBS/CMO/ABS/CDO, there is exposure of approximately $30 million primarily through limited partnership holdings.
MBS	— Mortgage-backed securities
CMO	— Collateralized mortgage obligation
ABS	— Asset-backed securities
CDO	— Collateralized debt obligation

6

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of December 31, 2007
(In millions)

Sub-Prime Fair Value Quality Distribution by Vintage Year

																	<BBB & Equity
	AAA				AA				A				BBB				Tranches				Total
2007	$	45	4.1	%	$	3	0.3	%	$	10	0.9	%	$	—	—	%	$	—	—	%	$	58	5.3	%
2006		408	36.9			50	4.5			8	0.7			3	0.3			4	0.4			473	42.8
2005		210	19.0			59	5.3			25	2.3			—	—			2	0.2			296	26.8
2004		27	2.4			28	2.5			102	9.2			—	—			2	0.2			159	14.3
2003 & prior		10	0.9			30	2.7			62	5.6			2	0.2			15	1.4			119	10.8
Total sub-prime	$	700	63.3	%	$	170	15.3	%	$	207	18.7	%	$	5	0.5	%	$	23	2.2	%	$	1,105	100.0	%

Sub-Prime Book Value Quality Distribution by Vintage Year

																	<BBB & Equity
	AAA				AA				A				BBB				Tranches				Total
2007	$	45	3.7	%	$	3	0.2	%	$	10	0.8	%	$	—	—	%	$	—	—	%	$	58	4.7	%
2006		407	33.6			82	6.8			12	1.0			3	0.2			4	0.3			508	41.9
2005		212	17.5			77	6.3			41	3.4			—	—			2	0.2			332	27.4
2004		27	2.2			31	2.6			119	9.8			—	—			2	0.2			179	14.8
2003 & prior		10	0.8			35	2.9			73	6.0			3	0.2			16	1.3			137	11.2
Total sub-prime	$	701	57.8	%	$	228	18.8	%	$	255	21.0	%	$	6	0.4	%	$	24	2.0	%	$	1,214	100.0	%

Alt-A Fair Value Quality Distribution by Vintage Year

																	<BBB & Equity
	AAA				AA				A				BBB				Tranches				Total
2007	$	234	19.4	%	$	37	3.1	%	$	10	0.8	%	$	—	—	%	$	3	0.3	%	$	284	23.6	%
2006		59	4.9			14	1.2			38	3.2			13	1.1			1	0.1			125	10.5
2005		102	8.5			2	0.2			—	—			—	—			—	—			104	8.7
2004		538	45.1			2	0.2			—	—			—	—			—	—			540	45.3
2003 & prior		143	11.9			—	—			—	—			—	—			—	—			143	11.9
Total Alt-A	$	1,076	89.8	%	$	55	4.7	%	$	48	4.0	%	$	13	1.1	%	$	4	0.4	%	$	1,196	100.0	%

Alt-A Book Value Quality Distribution by Vintage Year

																	<BBB & Equity
	AAA				AA				A				BBB				Tranches				Total
2007	$	233	18.9	%	$	39	3.1	%	$	10	0.8	%	$	—	—	%	$	3	0.2	%	$	285	23.0	%
2006		60	4.8			16	1.3			37	3.0			15	1.2			1	0.1			129	10.4
2005		109	8.8			3	0.2			—	—			—	—			—	—			112	9.0
2004		561	45.1			2	0.2			—	—			—	—			—	—			563	45.3
2003 & prior		153	12.3			—	—			—	—			—	—			—	—			153	12.3
Total Alt-A	$	1,116	89.9	%	$	60	4.8	%	$	47	3.8	%	$	15	1.2	%	$	4	0.3	%	$	1,242	100.0	%

7

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of December 31, 2007
(In millions)

MBS Distribution By Collateral Type & Quality

	15 Year				30 Year				ARM				Other				Total
	Fair		Book		Fair		Book		Fair		Book		Fair		Book		Fair		Book
	Value		Value		Value		Value		Value		Value		Value		Value		Value		Value
U.S. Government Agencies	$	23	$	24	$	397	$	398	$	626	$	628	$	166	$	167	$	1,212	$	1,217
AAA		—		—		—		—		—		—		—		—		—		—
AA		—		—		—		—		—		—		—		—		—		—
A		—		—		—		—		—		—		—		—		—		—
BBB		—		—		—		—		—		—		—		—		—		—
<BBB & Equity Tranches		—		—		—		—		—		—		—		—		—		—
Total MBS	$	23	$	24	$	397	$	398	$	626	$	628	$	166	$	167	$	1,212	$	1,217
Included in Total MBS:
Sub-prime	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Alt-A		—		—		—		—		—		—		—		—		—		—
Prime		23		24		397		398		626		628		166		167		1,212		1,217
Total MBS	$	23	$	24	$	397	$	398	$	626	$	628	$	166	$	167	$	1,212	$	1,217

CMO Distribution By Collateral Type & Quality

	15 Year				30 Year				ARM				Other				Total
	Fair		Book		Fair		Book		Fair		Book		Fair		Book		Fair		Book
	Value		Value		Value		Value		Value		Value		Value		Value		Value		Value
U.S. Government Agencies	$	225	$	227	$	1,160	$	1,175	$	—	$	—	$	75	$	75	$	1,460	$	1,477
AAA		379		385		3,133		3,209		1,505		1,502		280		289		5,297		5,385
AA		—		—		4		5		31		36		—		—		35		41
A		43		42		10		10		3		3		—		—		56		55
BBB		2		2		—		—		11		13		—		—		13		15
<BBB & Equity Tranches		1		2		—		—		—		—		—		—		1		2
Total CMO	$	650	$	658	$	4,307	$	4,399	$	1,550	$	1,554	$	355	$	364	$	6,862	$	6,975
Included in Total CMO:
Sub-prime	$	10	$	10	$	—	$	—	$	3	$	3	$	—	$	—	$	13	$	13
Alt-A		71		72		1,023		1,060		48		55		—		—		1,142		1,187
Prime		569		576		3,284		3,339		1,499		1,496		355		364		5,707		5,775
Total CMO	$	650	$	658	$	4,307	$	4,399	$	1,550	$	1,554	$	355	$	364	$	6,862	$	6,975

ARM	— Adjustable rate mortgage
MBS	— Mortgage-backed securities
CMO	— Collateralized mortgage obligation

8

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of December 31, 2007
(In millions)

ABS Distribution By Collateral Type & Quality

	CMBS				RMBS				Auto Loans				Home Equity				Student Loans				Other				Total
	Fair		Book		Fair		Book		Fair		Book		Fair		Book		Fair		Book		Fair		Book		Fair		Book
	Value		Value		Value		Value		Value		Value		Value		Value		Value		Value		Value		Value		Value		Value
AAA	$	663	$	695	$	425	$	427	$	91	$	91	$	382	$	383	$	341	$	341	$	161	$	156	$	2,063	$	2,093
AA		141		152		89		127		—		—		78		99		—		—		1		1		309		379
A		28		32		132		164		1		1		45		49		—		—		—		—		206		246
BBB		17		17		2		3		377		379		—		—		—		—		—		—		396		399
<BBB & Equity Tranches		—		—		15		16		8		8		5		5		—		—		—		—		28		29
Total ABS	$	849	$	896	$	663	$	737	$	477	$	479	$	510	$	536	$	341	$	341	$	162	$	157	$	3,002	$	3,146
Included in Total ABS:
Sub-prime	$	—	$	—	$	554	$	626	$	—	$	—	$	510	$	536	$	—	$	—	$	—	$	—	$	1,064	$	1,162
Alt-A		—		—		3		3		—		—		—		—		—		—		—		—		3		3
Prime & Non-Residential Mortgages		849		896		106		108		477		479		—		—		341		341		162		157		1,935		1,981
Total ABS	$	849	$	896	$	663	$	737	$	477	$	479	$	510	$	536	$	341	$	341	$	162	$	157	$	3,002	$	3,146

CDO Distribution By Collateral Type & Quality

	CMBS				RMBS				CDS				Other				Total
	Fair		Book		Fair		Book		Fair		Book		Fair		Book		Fair		Book
	Value		Value		Value		Value		Value		Value		Value		Value		Value		Value
AAA	$	—	$	—	$	13	$	14	$	10	$	10	$	4	$	4	$	27	$	28
AA		54		67		26		26		—		—		—		—		80		93
A		150		213		10		10		42		66		20		22		222		311
BBB		14		16		4		4		2		2		—		—		20		22
<BBB & Equity Tranches		10		10		3		3		2		2		—		—		15		15
Total CDO	$	228	$	306	$	56	$	57	$	56	$	80	$	24	$	26	$	364	$	469
Included in Total CDO:
Sub-prime	$	—	$	—	$	5	$	5	$	23	$	34	$	—	$	—	$	28	$	39
Alt-A		—		—		51		52		—		—		—		—		51		52
Prime & Non-Residential Mortgages		228		306		—		—		33		46		24		26		285		378
Total CDO	$	228	$	306	$	56	$	57	$	56	$	80	$	24	$	26	$	364	$	469

ABS	— Asset-backed securities
CDO	— Collateralized debt obligation
CMBS	— Commercial mortgage-backed securities
RMBS	— Residential mortgage-backed securities
CDS	— Credit default swaps

9

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

THREE MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
DECEMBER 31							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2007			2006			% Change			2007			2006			% Change			2007			2006			% Change
Gross written premiums	$	824		$	918			(10	)%	$	1,292		$	1,324			(2	)%	$	2,116		$	2,242			(6	)%
Net written premiums		743			833			(11	)		887			854			4			1,630			1,687			(3	)
Net earned premiums		833			885			(6	)		884			858			3			1,717			1,743			(1	)
Net investment income		214			245			(13	)		158			157			1			372			402			(7	)
Other revenues		15			34			(56	)		49			43			14			64			77			(17	)
Total operating revenues		1,062			1,164			(9	)		1,091			1,058			3			2,153			2,222			(3	)
Claims, benefits and expenses:
Net incurred claims and benefits		594			699			15			557			486			(15	)		1,151			1,185			3
Policyholders’ dividends		3			6			50			2			1			(100	)		5			7			29
Amortization of deferred acquisition costs		186			200			7			195			199			2			381			399			5
Other insurance related expenses		95			91			(4	)		53			45			(18	)		148			136			(9	)
Other expenses		7			55			87			60			39			(54	)		67			94			29
Total claims, benefits and expenses		885			1,051			16			867			770			(13	)		1,752			1,821			4
Operating income before income tax and minority interest		177			113			57			224			288			(22	)		401			401			—
Income tax expense on operating income		(53	)		(37	)		(43	)		(68	)		(78	)		13			(121	)		(115	)		(5	)
Minority interest		—			—			N/M			(11	)		(11	)		—			(11	)		(11	)		—
Net operating income from continuing operations		124			76			63			145			199			(27	)		269			275			(2	)
Realized investment gains (losses), net of participating policyholders’ and minority interests		(33	)		77			(143	)		(19	)		37			(151	)		(52	)		114			(146	)
Income tax (expense) benefit on realized investment gains (losses)		12			(26	)		146			7			(9	)		178			19			(35	)		154
Net income from continuing operations	$	103		$	127			(19	)%	$	133		$	227			(41	)%	$	236		$	354			(33	)%
FINANCIAL RATIOS
Loss & LAE		71.2	%		79.0	%					63.0	%		56.8	%					67.0	%		68.0	%
Acquisition expense		20.0			18.7						18.2			18.0						19.1			18.3
Underwriting expense		13.8			14.1						9.8			10.3						11.6			12.4
Expense		33.8			32.8						28.0			28.3						30.7			30.7
Dividend		0.4			0.5						0.1			0.1						0.3			0.3
Combined ratio		105.4	%		112.3	%					91.1	%		85.2	%					98.0	%		99.0	%
LOSS RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	21		$	16					$	3		$	3					$	24		$	19
Impact on loss & LAE ratio		2.5	%		1.8	%					0.3	%		0.4	%					1.4	%		1.1	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development (1)	$	(30	)	$	136					$	(21	)	$	(58	)				$	(51	)	$	78
Prior year premium development		(4	)		7						2			22						(2	)		29
Other (2)		8			(53	)					(3	)		—						5			(53	)
Total development & other	$	(26	)	$	90					$	(22	)	$	(36	)				$	(48	)	$	54
Impact of development & other on loss & LAE ratio (3)		(2.9	)%		9.9	%					(2.6	)%		(5.1	)%					(2.7	)%		2.5	%

(1)	In 2007, Standard Lines includes $39 million of favorable loss & LAE reserve development related to the 2005 hurricanes.
(2)	Other includes the impacts of change in allowance for uncollectible reinsurance and interest accretion.
(3)	In 2006, includes the impact of significant commutations.

10

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
DECEMBER 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	$	1,717		$	1,743		$	149		$	159			(6	)%	$	1		$	(3	)		133	%	$	1,867		$	1,899			(2	)%
Net investment income		372			402			128			194			(34	)		74			94			(21	)		574			690			(17	)
Other revenues		64			77			2			22			(91	)		2			1			100			68			100			(32	)
Total operating revenues		2,153			2,222			279			375			(26	)		77			92			(16	)		2,509			2,689			(7	)
Claims, benefits and expenses:
Net incurred claims and benefits		1,151			1,185			250			309			19			106			100			(6	)		1,507			1,594			5
Policyholders’ dividends		5			7			1			—			N/M			—			—			N/M			6			7			14
Amortization of deferred acquisition costs		381			399			2			2			—			—			1			N/M			383			402			5
Other insurance related expenses		148			136			56			60			7			(4	)		(2	)		100			200			194			(3	)
Other expenses		67			94			9			18			50			32			36			11			108			148			27
Total claims, benefits and expenses		1,752			1,821			318			389			18			134			135			1			2,204			2,345			6
Operating income (loss) before income tax and minority interest		401			401			(39	)		(14	)		(179	)		(57	)		(43	)		(33	)		305			344			(11	)
Income tax (expense) benefit on operating income (loss)		(121	)		(115	)		22			13			69			28			18			56			(71	)		(84	)		15
Minority interest		(11	)		(11	)		—			—			N/M			—			(1	)		N/M			(11	)		(12	)		8
Net operating income (loss) from continuing operations		269			275			(17	)		(1	)		N/M			(29	)		(26	)		(12	)		223			248			(10	)
Realized investment gains (losses), net of participating policyholders’ and minority interests		(52	)		114			(30	)		6			N/M			(12	)		34			(135	)		(94	)		154			(161	)
Income tax (expense) benefit on realized investment gains (losses)		19			(35	)		11			(2	)		N/M			3			(9	)		133			33			(46	)		172
Net income (loss) from continuing operations	$	236		$	354		$	(36	)	$	3			N/M	%	$	(38	)	$	(1	)		N/M	%	$	162		$	356			(54	)%
							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	$	2,116		$	2,242		$	180		$	176			2	%	$	1		$	1			—	%	$	2,297		$	2,419			(5	)%
Net written premiums		1,630			1,687			146			162			(10	)		—			(3	)		N/M			1,776			1,846			(4	)
Net earned premiums		1,717			1,743			148			157			(6	)		1			(3	)		133			1,866			1,897			(2	)
FINANCIAL RATIOS
Loss & LAE		67.0	%		68.0	%		N/M	%		N/M	%					N/M	%		N/M	%					79.8	%		79.6	%
Acquisition expense		19.1			18.3			N/M			N/M						N/M			N/M						18.2			17.8
Underwriting expense		11.6			12.4			N/M			N/M						N/M			N/M						13.0			13.6
Expense		30.7			30.7			N/M			N/M						N/M			N/M						31.2			31.4
Dividend		0.3			0.3			N/M			N/M						N/M			N/M						0.2			0.3
Combined ratio		98.0	%		99.0	%		N/M	%		N/M	%					N/M	%		N/M	%					111.2	%		111.3	%

11

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

TWELVE MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
DECEMBER 31							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2007			2006			% Change			2007			2006			% Change			2007			2006			% Change
Gross written premiums	$	3,620		$	3,968			(9	)%	$	5,420		$	5,319			2	%	$	9,040		$	9,287			(3	)%
Net written premiums		3,267			3,598			(9	)		3,506			3,431			2			6,773			7,029			(4	)
Net earned premiums		3,379			3,557			(5	)		3,484			3,411			2			6,863			6,968			(2	)
Net investment income		878			840			5			621			554			12			1,499			1,394			8
Other revenues		47			44			7			188			156			21			235			200			18
Total operating revenues		4,304			4,441			(3	)		4,293			4,121			4			8,597			8,562			—
Claims, benefits and expenses:
Net incurred claims and benefits		2,279			2,579			12			2,187			2,060			(6	)		4,466			4,639			4
Policyholders’ dividends		6			18			67			7			4			(75	)		13			22			41
Amortization of deferred acquisition costs		761			805			5			744			714			(4	)		1,505			1,519			1
Other insurance related expenses		338			319			(6	)		187			219			15			525			538			2
Restructuring and other related charges		—			—			N/M			—			—			N/M			—			—			N/M
Other expenses		43			66			35			185			151			(23	)		228			217			(5	)
Total claims, benefits and expenses		3,427			3,787			10			3,310			3,148			(5	)		6,737			6,935			3
Operating income before income tax and minority interest		877			654			34			983			973			1			1,860			1,627			14
Income tax expense on operating income		(275	)		(208	)		(32	)		(317	)		(295	)		(7	)		(592	)		(503	)		(18	)
Minority interest		—			—			N/M			(47	)		(43	)		(9	)		(47	)		(43	)		(9	)
Net operating income from continuing operations		602			446			35			619			635			(3	)		1,221			1,081			13
Realized investment gains (losses), net of participating policyholders’ and minority interests		(149	)		72			N/M			(81	)		32			N/M			(230	)		104			N/M
Income tax (expense) benefit on realized investment gains (losses)		52			(24	)		N/M			28			(7	)		N/M			80			(31	)		N/M
Net income from continuing operations	$	505		$	494			2	%	$	566		$	660			(14	)%	$	1,071		$	1,154			(7	)%
FINANCIAL RATIOS
Loss & LAE		67.4	%		72.5	%					62.8	%		60.4	%					65.1	%		66.6	%
Acquisition expense		18.9			18.5						17.1			17.9						18.0			18.2
Underwriting expense		13.6			13.1						9.6			9.5						11.5			11.3
Expense		32.5			31.6						26.7			27.4						29.5			29.5
Dividend		0.2			0.5						0.2			0.1						0.2			0.3
Combined ratio		100.1	%		104.6	%					89.7	%		87.9	%					94.8	%		96.4	%
LOSS RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	73		$	54					$	5		$	5					$	78		$	59
Impact on loss & LAE ratio		2.2	%		1.5	%					0.1	%		0.1	%					1.1	%		0.9	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & LAE reserve development (1)	$	(104	)	$	208					$	(25	)	$	(61	)				$	(129	)	$	147
Prior year premium development		(19	)		(58	)					(11	)		(5	)					(30	)		(63	)
Other (2)		28			(10	)					(3	)		(1	)					25			(11	)
Total development & other	$	(95	)	$	140					$	(39	)	$	(67	)				$	(134	)	$	73
Impact of development & other on loss & LAE ratio (3)		(2.7	)%		4.5	%					(1.0	)%		(1.9	)%					(1.8	)%		1.4	%

(1)	In 2007, Standard Lines includes $39 million of favorable loss & LAE reserve development related to the 2005 hurricanes.
(2)	Other includes the impacts of change in allowance for uncollectible reinsurance and interest accretion.
(3)	In 2006, includes the impact of significant commutations.

12

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

TWELVE MONTHS ENDED							Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
DECEMBER 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	$	6,863		$	6,968		$	618		$	641			(4	)%	$	3		$	(6	)		150	%	$	7,484		$	7,603			(2	)%
Net investment income		1,499			1,394			622			698			(11	)		312			320			(3	)		2,433			2,412			1
Other revenues		235			200			36			66			(45	)		8			9			(11	)		279			275			1
Total operating revenues		8,597			8,562			1,276			1,405			(9	)		323			323			—			10,196			10,290			(1	)
Claims, benefits and expenses:
Net incurred claims and benefits		4,466			4,639			1,312			1,195			(10	)		217			191			(14	)		5,995			6,025			—
Policyholders’ dividends		13			22			1			—			N/M			—			—			N/M			14			22			36
Amortization of deferred acquisition costs		1,505			1,519			15			14			(7	)		—			1			N/M			1,520			1,534			1
Other insurance related expenses		525			538			199			201			1			9			18			50			733			757			3
Restructuring and other related charges		—			—			—			—			N/M			—			(13	)		N/M			—			(13	)		N/M
Other expenses		228			217			43			58			26			130			126			(3	)		401			401			—
Total claims, benefits and expenses		6,737			6,935			1,570			1,468			(7	)		356			323			(10	)		8,663			8,726			1
Operating income (loss) before income tax and minority interest		1,860			1,627			(294	)		(63	)		N/M			(33	)		—			N/M			1,533			1,564			(2	)
Income tax (expense) benefit on operating income (loss)		(592	)		(503	)		135			49			176			32			4			N/M			(425	)		(450	)		6
Minority interest		(47	)		(43	)		—			—			N/M			(1	)		(1	)		—			(48	)		(44	)		(9	)
Net operating income (loss) from continuing operations		1,221			1,081			(159	)		(14	)		N/M			(2	)		3			(167	)		1,060			1,070			(1	)
Realized investment gains (losses), net of participating policyholders’ and minority interests		(230	)		104			(56	)		(50	)		(12	)		(25	)		32			(178	)		(311	)		86			N/M
Income tax (expense) benefit on realized investment gains (losses)		80			(31	)		20			17			18			8			(5	)		N/M			108			(19	)		N/M
Net income (loss) from continuing operations	$	1,071		$	1,154		$	(195	)	$	(47	)		N/M	%	$	(19	)	$	30			(163	)%	$	857		$	1,137			(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	$	9,040		$	9,287		$	692		$	734			(6	)%	$	7		$	18			(61	)%	$	9,739		$	10,039			(3	)%
Net written premiums		6,773			7,029			607			633			(4	)		2			(7	)		129			7,382			7,655			(4	)
Net earned premiums		6,863			6,968			615			633			(3	)		3			(6	)		150			7,481			7,595			(2	)
FINANCIAL RATIOS
Loss & LAE		65.1	%		66.6	%		N/M	%		N/M	%					N/M	%		N/M	%					77.7	%		75.7	%
Acquisition expense		18.0			18.2			N/M			N/M						N/M			N/M						17.5			17.8
Underwriting expense		11.5			11.3			N/M			N/M						N/M			N/M						12.5			12.2
Expense		29.5			29.5			N/M			N/M						N/M			N/M						30.0			30.0
Dividend		0.2			0.3			N/M			N/M						N/M			N/M						0.2			0.3
Combined ratio		94.8	%		96.4	%		N/M	%		N/M	%					N/M	%		N/M	%					107.9	%		106.0	%

13

CNA FINANCIAL CORPORATION
Financial Supplement
Analysis of Pretax Net Investment Income

(In millions)	Standard Lines
	1Q06			2Q06			3Q06			4Q06			2006			1Q07			2Q07			3Q07			4Q07			2007
Limited partnership income	$	35		$	25		$	21		$	57		$	138		$	23		$	36		$	12		$	21		$	92
Interest on funds withheld and other deposits		(13	)		(18	)		(8	)		(2	)		(41	)		(1	)		(1	)		(2	)		(1	)		(5	)
Income (loss) from trading securities		—			—			—			—			—			—			—			—			—			—
Other investment income		170			193			190			190			743			198			200			199			194			791
Net investment income	$	192		$	200		$	203		$	245		$	840		$	220		$	235		$	209		$	214		$	878
	Specialty Lines
	1Q06			2Q06			3Q06			4Q06			2006			1Q07			2Q07			3Q07			4Q07			2007
Limited partnership income	$	16		$	12		$	10		$	29		$	67		$	12		$	20		$	7		$	12		$	51
Interest on funds withheld and other deposits		(3	)		(5	)		(1	)		(2	)		(11	)		(1	)		—			(1	)		—			(2	)
Income (loss) from trading securities		—			—			—			—			—			—			—			—			—			—
Other investment income		110			130			128			130			498			138			142			146			146			572
Net investment income	$	123		$	137		$	137		$	157		$	554		$	149		$	162		$	152		$	158		$	621
	P&C Operations
	1Q06			2Q06			3Q06			4Q06			2006			1Q07			2Q07			3Q07			4Q07			2007
Limited partnership income	$	51		$	37		$	31		$	86		$	205		$	35		$	56		$	19		$	33		$	143
Interest on funds withheld and other deposits		(16	)		(23	)		(9	)		(4	)		(52	)		(2	)		(1	)		(3	)		(1	)		(7	)
Income (loss) from trading securities		—			—			—			—			—			—			—			—			—			—
Other investment income		280			323			318			320			1,241			336			342			345			340			1,363
Net investment income	$	315		$	337		$	340		$	402		$	1,394		$	369		$	397		$	361		$	372		$	1,499
	Life & Group Non-Core
	1Q06			2Q06			3Q06			4Q06			2006			1Q07			2Q07			3Q07			4Q07			2007
Limited partnership income	$	10		$	8		$	6		$	10		$	34		$	9		$	3		$	(4	)	$	2		$	10
Interest on funds withheld and other deposits		—			—			—			—			—			—			—			—			—			—
Income (loss) from trading securities		42			(9	)		30			40			103			3			40			(2	)		(31	)		10
Other investment income		135			139			143			144			561			149			145			151			157			602
Net investment income	$	187		$	138		$	179		$	194		$	698		$	161		$	188		$	145		$	128		$	622
	Corporate & Other Non-Core
	1Q06			2Q06			3Q06			4Q06			2006			1Q07			2Q07			3Q07			4Q07			2007
Limited partnership income	$	13		$	8		$	9		$	19		$	49		$	8		$	12		$	4		$	6		$	30
Interest on funds withheld and other deposits		(9	)		(7	)		(1	)		1			(16	)		1			1			3			1			6
Income (loss) from trading securities		—			—			—			—			—			—			—			—			—			—
Other investment income		64			76			73			74			287			69			73			67			67			276
Net investment income	$	68		$	77		$	81		$	94		$	320		$	78		$	86		$	74		$	74		$	312

	Total Operations
	1Q06			2Q06			3Q06			4Q06			2006			1Q07			2Q07		3Q07			4Q07			2007
Limited partnership income	$	74		$	53		$	46		$	115		$	288		$	52		$	71	$	19		$	41		$	183
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		(2	)		(31	)		10
Other investment income		479			538			534			538			2,089			554			560		563			564			2,241
Net investment income	$	570		$	552		$	600		$	690		$	2,412		$	608		$	671	$	580		$	574		$	2,433

14

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)	2007			2006			% Change			2007			2006			% Change
Property & Casualty Companies
Gross written premiums	$	2,345		$	2,287			3	%	$	9,783		$	9,506			3	%
Net written premiums		1,625			1,701			(4	)		6,805			7,157			(5	)
Net earned premiums		1,556			1,599			(3	)		6,240			6,419			(3	)
Claim and claim adjustment expenses		1,282			1,401			8			4,980			5,053			1
Acquisition expenses		275			285			4			1,150			1,229			6
Underwriting expenses		217			151			(44	)		893			833			(7	)
Policyholders’ dividends		3			3			—			18			15			(20	)
Underwriting loss		(221	)		(241	)		8			(801	)		(711	)		(13	)
Net investment income (1)		499			484			3			2,135			1,847			16
Other expenses		(14	)		(33	)		58			(44	)		(121	)		64
Income tax expense		(47	)		(22	)		(114	)		(251	)		(245	)		(2	)
Net realized losses		(212	)		(81	)		(162	)		(464	)		(49	)		N/M
Net income	$	5		$	107			(95	)%	$	575		$	721			(20	)%
Financial Ratios
Loss and LAE		82.4	%		87.6	%					79.8	%		78.7	%
Acquisition expense		16.9			16.7						16.9			17.2
Underwriting expense		13.3			8.9						13.1			11.7
Expense		30.2			25.6						30.0			28.9
Dividend		0.2			0.2						0.3			0.2
Combined ratio		112.8	%		113.4	%					110.1	%		107.8	%
Life Company
Earned premium	$	1		$	1					$	3		$	9

SUPPLEMENTAL STATUTORY DATA

	(Preliminary)
(In millions)	December 31, 2007		December 31, 2006
Property & Casualty Companies
Statutory surplus (2)	$	8,378	$	8,137
Life Company
Statutory surplus	$	471	$	687
Gross life insurance inforce	$	14,090	$	15,653

(1)	The twelve months ended December 31, 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.

15

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

	Standard Lines
	2007 FY			2006 FY			2006 FY
	Evaluated			Evaluated			Evaluated
	at 12/31/07			at 12/31/06			at 12/31/07
Gross Accident Year		66.6	%		69.8	%		67.6	%
Impact of Reinsurance		3.5			(1.8	)		(1.7	)
Net Accident Year		70.1			68.0			65.9	%
Impact of Significant Commutations		—			1.4
Impact of Development and Other (1)		(2.7	)		3.1
Net Calendar Year		67.4	%		72.5	%

	Specialty Lines
	2007 FY			2006 FY			2006 FY
	Evaluated			Evaluated			Evaluated
	at 12/31/07			at 12/31/06			at 12/31/07
Gross Accident Year		59.2	%		62.2	%		59.3	%
Impact of Reinsurance		4.6			0.1			1.6
Net Accident Year		63.8			62.3			60.9	%
Impact of Significant Commutations		—			—
Impact of Development and Other (1)		(1.0	)		(1.9	)
Net Calendar Year		62.8	%		60.4	%

	P&C Operations
	2007 FY			2006 FY			2006 FY
	Evaluated			Evaluated			Evaluated
	at 12/31/07			at 12/31/06			at 12/31/07
Gross Accident Year		62.2	%		65.5	%		62.8	%
Impact of Reinsurance		4.7			(0.3	)		0.6
Net Accident Year		66.9			65.2			63.4	%
Impact of Significant Commutations		—			0.7
Impact of Development and Other (1)		(1.8	)		0.7
Net Calendar Year		65.1	%		66.6	%

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

16