8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

Date of Report (Date of earliest event reported)     April 28, 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))

Page 1 of 3

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On April 28, 2008, the registrant issued a press release and posted a financial supplement on its website providing information on its results of operations for the first quarter 2008. The press release is furnished as Exhibit 99.1 and the financial supplement is furnished as Exhibit 99.2 to this Form 8-K.

The information under Item 2.02 and in Exhibits 99.1 and 99.2 in this Current Report are being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information under Item 2.02 and in Exhibits 99.1 and 99.2 in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits:

Exhibit No.	Description
99.1	CNA Financial Corporation press release, issued April 28, 2008, providing information on the first quarter 2008 results of operations.
99.2	CNA Financial Corporation financial supplement, posted on its website April 28, 2008, providing supplemental financial information on the first quarter 2008.

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: April 28, 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
1st QUARTER 2008 RESULTS

CHICAGO, April 28, 2008 — CNA Financial Corporation (NYSE: CNA) today announced first quarter 2008 results, which included the following items:

• Net operating income of $221 million, or $0.82 per diluted share.

• Net income of $187 million, or $0.69 per diluted share.

• Property & Casualty Operations combined ratio of 98.1%.

• Book value per common share of $34.79 at March 31, 2008, as compared to $37.36 at December 31, 2007.

	Results for the Three Months
	Ended March 31
($ millions)	2008			2007
Net operating income (a)	$	221		$	307
Net realized investment losses		(33	)		(13	)
Net income from continuing operations		188			294
Net (loss) income from discontinued operations		(1	)		2
Net income	$	187		$	296

(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 2007 Form 10-K, as amended by Form 10-K/A for further discussion of this measure.

Page 1 of 6

Diluted Earnings Per Share Available to Common Stockholders
	Results for the Three Months
	Ended March 31
	2008			2007
Net operating income	$	0.82		$	1.13
Net realized investment losses		(0.12	)		(0.05	)
Net income from continuing operations		0.70			1.08
Net (loss) income from discontinued operations		(0.01	)		0.01
Net income	$	0.69		$	1.09

Net operating income from continuing operations for the three months ended March 31, 2008 decreased $86 million as compared with the same period in 2007. Net operating income for our core Property & Casualty Operations decreased $77 million, while net operating income for our Non-Core operations decreased $9 million. This overall decrease was primarily due to lower net investment income, with additional impacts from decreased current accident year underwriting results in our core Property & Casualty Operations and increased catastrophe losses. The Property & Casualty Operations produced combined ratios of 98.1% and 95.1% in the first quarters of 2008 and 2007.

Pretax net investment income for the first quarter of 2008 decreased $174 million over the same period of 2007. This decrease was primarily driven by a $91 million decline in limited partnership results and an $80 million unfavorable change in trading portfolio results. The decreased results from the trading portfolio were largely offset by a corresponding decrease in the policyholders’ funds reserves supported by the trading portfolio.

Net income for the three months ended March 31, 2008 decreased $109 million as compared with the same period in 2007. This decrease was primarily due to lower net operating income and higher net realized investment losses.

“CNA’s disciplined approach in an increasingly competitive market continues to serve us well,” said Stephen W. Lilienthal, Chairman and Chief Executive Officer of CNA Financial Corporation. “During the first quarter, our core Property & Casualty Operations delivered a sub-100% combined ratio for the 9^th consecutive quarter. While our earnings were impacted by reduced investment income, CNA is well positioned operationally and financially to maintain our profitable course. In addition, we repurchased shares during the quarter for the first time in nearly 10 years. These transactions, along with the dividend initiated last year, were made possible by CNA’s much improved capital position and reflect our ongoing focus on capital management.”

Page 2 of 6

Segment Results for the Three Months Ended March 31, 2008
													Corporate
	Standard			Specialty			Total P&C			Life &Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income (loss)	$	95		$	124		$	219		$	(3	)	$	5		$	221
Net realized investment losses		(11	)		(5	)		(16	)		(11	)		(6	)		(33	)
Net income (loss) from continuing operations	$	84		$	119		$	203		$	(14	)	$	(1	)	$	188
Segment Results for the Three Months Ended March 31, 2007
													Corporate
	Standard			Specialty			Total P&C			Life &Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income	$	154		$	142		$	296		$	2		$	9		$	307
Net realized investment (losses) gains		(15	)		(9	)		(24	)		1			10			(13	)
Net income from continuing operations	$	139		$	133		$	272		$	3		$	19		$	294

Property & Casualty Operations Gross Written Premiums
	Three Months Ended March 31
($ millions)	2008		2007
Standard Lines	$	832	$	948
Specialty Lines		1,293		1,412
Total P&C Operations	$	2,125	$	2,360

Property & Casualty Operations Net Written Premiums
	Three Months Ended March 31
($ millions)	2008		2007
Standard Lines	$	771	$	867
Specialty Lines		848		864
Total P&C Operations	$	1,619	$	1,731

Page 3 of 6

Property & Casualty Calendar Year Loss Ratios
	Three Months Ended March 31
	2008			2007
Standard Lines		73.7	%		68.7	%
Specialty Lines		64.8	%		64.2	%
Total P&C Operations		69.0	%		66.5	%
Total P&C Companies (a)		77.8	%		75.3	%
Property & Casualty Calendar Year Combined Ratios
	Three Months Ended March 31
	2008			2007
Standard Lines		104.4	%		99.1	%
Specialty Lines		92.4	%		91.0	%
Total P&C Operations		98.1	%		95.1	%
Total P&C Companies (a)		107.5	%		104.5	%

(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 Gross Accident Year Loss Ratios
	Accident year 2008			Accident year 2007			Accident year 2007
	Evaluated at			Evaluated at			Evaluated at
	March 31, 2008			December 31, 2007			March 31, 2008
Standard Lines		75.7	%		66.6	%		66.3	%
Specialty Lines		62.8	%		59.2	%		59.0	%
Total P&C Operations		68.0	%		62.2	%		62.0	%

Property & Casualty Net Accident Year Loss Ratios
	Accident year 2008			Accident year 2007			Accident year 2007
	Evaluated at			Evaluated at			Evaluated at
	March 31, 2008			December 31, 2007			March 31, 2008
Standard Lines		76.3	%		70.1	%		69.8	%
Specialty Lines		64.8	%		63.8	%		63.4	%
Total P&C Operations		70.3	%		66.9	%		66.5	%

Page 4 of 6

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 $96 million for the first quarter of 2008 as compared with the same period in 2007. Standard Lines retention increased 2 points to 79% as compared to the same period in 2007. Rates on average decreased 5% during the first quarter of 2008.

• Net income and net operating income decreased $55 million and $59 million for the first quarter of 2008 as compared with the same period in 2007. These decreases were primarily driven by lower net investment income, decreased current accident year underwriting results and higher catastrophe losses. Catastrophe losses were $34 million after-tax in the first quarter of 2008, as compared to $20 million after-tax in the first quarter of 2007. These decreases were partially offset by increased favorable net prior year development.

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 decreased $16 million for the first quarter of 2008 as compared with the same period in 2007. Specialty Lines retention remained flat at 84% as compared to the same period in 2007. Rates on average decreased 4% during the first quarter of 2008.

• Net income and net operating income decreased $14 million and $18 million for the first quarter of 2008 as compared with the same period in 2007, primarily driven by lower net investment income and the unfavorable impact of foreign currency rate movements. These decreases were partially offset by $10 million of favorable results in our warranty line of business, which resulted from an annual review.

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 first quarter of 2008 decreased $17 million as compared with the same period in 2007. This decrease was primarily attributable to net realized investment losses and a decline in net results in our pension deposit business.

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 results for the first quarter of 2008 decreased $20 million as compared with the same period in 2007. The decrease was primarily due to lower net investment income and decreased net realized investment results.

Page 5 of 6

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.

Conference Call and Webcast Information:

A conference call for investors and the professional investment community will be held at 10:00 a.m. EDT 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) 599-4876, or for international callers, (913) 312-1378. 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 May 5, 2008 by dialing (888) 203-1112, or for international callers, (719) 457-0820. The replay passcode is 4281608. The replay will also be available on CNA’s website. Financial supplement information related to the first quarter results is available on the investor relations pages of the CNA website or by contacting David Adams at (312) 822-2183.

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 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.

# # #

Page 6 of 6

EX-99.2

Exhibit 99.2

CNA Financial Corporation
Supplemental Financial Information
March 31, 2008

This report is for informational purposes only and includes consolidated financial statements and financial exhibits that are unaudited. This report should be read in conjunction with documents filed with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

CNA Financial Corporation
Table of Contents
March 31, 2008

	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	10
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations	11
Analysis of Pretax Net Investment Income	12
Statutory Data — Preliminary	13
Property & Casualty Operations Loss and LAE Ratio Analysis	14

CNA Financial Corporation
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 N of the Consolidated Financial Statements within the 2007 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 employ strategies that generate returns through investing in a substantial number of securities that are readily marketable while engaging in various risk management techniques primarily in fixed and public equity markets. Some of these limited partnership investment strategies may include low levels of leverage and hedging that potentially introduce more volatility and risk to the partnership returns.

• Certain immaterial differences are due to rounding.

• N/M = Not Meaningful

i

CNA FINANCIAL CORPORATION
Financial Supplement
Statements of Operations

	Three Months
PERIOD ENDED MARCH 31							Fav /
							(Unfav)
(In millions)	2008			2007			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,813		$	1,863			(3)	%
Net investment income		434			608			(29	)
Realized investment losses, net of participating policyholders’ and minority interests		(51	)		(21	)		(143	)
Other revenues		86			67			28
Total revenues		2,282			2,517			(9	)
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,389			1,448			4
Amortization of deferred acquisition costs		368			381			3
Other operating expenses		227			218			(4	)
Interest		34			34			—
Total claims, benefits and expenses		2,018			2,081			3
Income before income tax and minority interest		264			436			(39	)
Income tax expense		(64	)		(132	)		52
Minority interest		(12	)		(10	)		(20	)
Income from continuing operations		188			294			(36	)
Income (loss) from discontinued operations, net of tax		(1	)		2			(150	)
Net income	$	187		$	296			(37)	%

1

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

PERIOD ENDED MARCH 31	Three Months
							Fav /
							(Unfav)
(In millions, except per share data)	2008			2007			% Change
COMPONENTS OF NET INCOME
Net operating income	$	221		$	307			(28	)%
Net realized investment losses, net of participating policyholders’ and minority interests		(33	)		(13	)		(154	)
Income from continuing operations		188			294			(36	)
Income (loss) from discontinued operations, net of tax		(1	)		2			(150	)
Net income	$	187		$	296			(37	)%
BASIC AND DILUTED EARNINGS PER SHARE
Net operating income	$	0.82		$	1.13			(27	)%
Net realized investment losses, net of participating policyholders’ and minority interests		(0.12	)		(0.05	)		(140	)
Income from continuing operations		0.70			1.08			(35	)
Income (loss) from discontinued operations, net of tax		(0.01	)		0.01			(200	)
Basic earnings per share available to common stockholders	$	0.69		$	1.09			(37	)%
WEIGHTED AVERAGE OUTSTANDING COMMON STOCK AND COMMON STOCK EQUIVALENTS
Basic		270.7			271.3
Diluted		270.8			271.6
RETURN ON EQUITY
Net income (1)		7.7	%		11.9	%
Net operating income (2)		8.8			13.1

(1)	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.
(2)	Annualized net operating income divided by the average stockholders’ equity excluding AOCI for the period. Average equity excluding AOCI is calculated using a simple average of the beginning and ending balances for the period.

2

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

(In millions, except per share data)	March 31, 2008			December 31, 2007
Total assets	$	56,424		$	56,732
Insurance reserves		40,148			40,222
Debt		2,007			2,157
Total liabilities		46,669			46,197
Minority interest		395			385
Accumulated other comprehensive income (loss)		(763	)		103
Total stockholders’ equity		9,360			10,150
Book value per common share	$	34.79		$	37.36
Book value per common share excluding AOCI	$	37.63		$	36.98
Outstanding shares of common stock (in millions of shares)		269.0			271.7

THREE MONTHS ENDED
MARCH 31
(In millions)	2008			2007
Net cash flows provided by operating activities (1)	$	303		$	217
Net cash flows provided (used) by investing activities		11			(201	)
Net cash flows used by financing activities		(273	)		(26	)
Net cash flows from operating, investing and financing activities	$	41		$	(10	)

(1) Operating cash flows for the three months ended March 31, 2008 and 2007 include $4 million and $(18) million related to discontinued operations.

3

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

THREE MONTHS ENDED
MARCH 31, 2008										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	$	12,048		$	8,403		$	20,451		$	3,027		$	5,110		$	28,588
Ceded		2,128			1,786			3,914			1,147			1,995			7,056
Net		9,920			6,617			16,537			1,880			3,115			21,532
Net incurred claim & claim adjustment expenses		577			570			1,147			118			24			1,289
Net claim & claim adjustment expense payments		(617	)		(390	)		(1,007	)		(104	)		(145	)		(1,256	)
Foreign currency translation adjustment		—			10			10			1			(2	)		9
Claim & claim adjustment expense reserves, end of period
Net		9,880			6,807			16,687			1,895			2,992			21,574
Ceded		2,107			1,795			3,902			1,111			1,915			6,928
Gross	$	11,987		$	8,602		$	20,589		$	3,006		$	4,907		$	28,502

4

CNA FINANCIAL CORPORATION
Financial Supplement
Investments by Segment Aggregation

	March 31, 2008					December 31, 2007
(In millions)	Book Value			Fair Value		Book Value			Fair Value
Property & Casualty and Corporate & Other Non-Core:
Fixed maturities — taxable	$	19,240		$	18,192	$	19,351		$	18,951
Fixed maturities — tax exempt		5,318			5,202		5,815			5,810
Equities		245			434		254			459
Short-term investments		5,033			5,034		4,385			4,387
Limited partnership investments		1,926			1,926		1,877			1,877
Other		7			7		8			45
Total investments	$	31,769		$	30,795	$	31,690		$	31,529
Net receivable/(payable)	$	246				$	(265	)
Securities lending collateral		(878	)				(53	)
Life & Group Non-Core:
Fixed maturities — taxable	$	7,484		$	7,347	$	7,422		$	7,631
Fixed maturities — tax exempt		1,914			1,755		1,800			1,865
Equities		42			40		112			109
Short-term investments		313			313		290			290
Limited partnership investments		319			319		337			337
Other		2			2		1			1
Total investments	$	10,074		$	9,776	$	9,962		$	10,233
Net receivable/(payable)	$	(17	)			$	1
Securities lending collateral		—					—
Total investments	$	41,843		$	40,571	$	41,652		$	41,762
Total net receivable/(payable)	$	229				$	(264	)
Total securities lending collateral		(878	)				(53	)

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 $73 million and $53 million as of March 31, 2008 and December 31, 2007, 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 March 31, 2008
(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	$	9,395	23.2	%	$	961	2.4	%	$	10,356	25.6	%
Other taxable fixed maturities		8,797	21.7			6,386	15.7			15,183	37.4
Tax exempt fixed maturities		5,202	12.8			1,755	4.3			6,957	17.1
All other		7,401	18.2			674	1.7			8,075	19.9
Total investments	$	30,795	75.9	%	$	9,776	24.1	%	$	40,571	100.0	%

Invested Assets Amortized Cost By Segment

	P&C Operations and				Life & Group
	Corporate & Other Non-Core				Non-Core				Total Operations
MBS/CMO/ABS/CDO	$	10,101	24.2	%	$	1,038	2.5	%	$	11,139	26.7	%
Other taxable fixed maturities		9,139	21.8			6,446	15.4			15,585	37.2
Tax exempt fixed maturities		5,318	12.7			1,914	4.6			7,232	17.3
All other		7,211	17.2			676	1.6			7,887	18.8
Total investments	$	31,769	75.9	%	$	10,074	24.1	%	$	41,843	100.0	%

MBS/CMO/ABS/CDO Fair Value Distribution

																					% of Total
	MBS				CMO				ABS				CDO				Total				Investments
U.S. Government Agencies	$	1,022	9.9	%	$	1,229	11.9	%	$	—	—	%	$	—	—	%	$	2,251	21.8	%		5.6	%
AAA		—	—			4,773	46.1			2,235	21.6			9	0.1			7,017	67.8			17.3
AA		—	—			24	0.2			254	2.4			51	0.5			329	3.1			0.8
A		—	—			23	0.2			157	1.5			126	1.2			306	2.9			0.8
BBB		—	—			8	0.1			381	3.7			12	0.1			401	3.9			1.0
<BBB & Equity Tranches		—	—			2	—			39	0.4			11	0.1			52	0.5			0.1
Total MBS/CMO/ABS/CDO	$	1,022	9.9	%	$	6,059	58.5	%	$	3,066	29.6	%	$	209	2.0	%	$	10,356	100.0	%		25.6	%
Sub-prime (Included above) (1)	$	—			$	5			$	1,485			$	18			$	1,508	14.6	%		3.7	%
Alt-A (Included above)	$	—			$	1,213			$	1			$	32			$	1,246	12.0	%		3.1	%
MBS/CMO/ABS/CDO Amortized Cost Distribution
																					% of Total
	MBS				CMO				ABS				CDO				Total				Investments
U.S. Government Agencies	$	1,018	9.1	%	$	1,237	11.1	%	$	—	—	%	$	—	—	%	$	2,255	20.2	%		5.4	%
AAA		—	—			5,073	45.6			2,309	20.8			10	0.1			7,392	66.5			17.7
AA		—	—			27	0.2			344	3.1			90	0.8			461	4.1			1.1
A		—	—			27	0.2			224	2.0			285	2.6			536	4.8			1.3
BBB		—	—			6	0.1			391	3.5			16	0.1			413	3.7			1.0
<BBB & Equity Tranches		—	—			2	—			68	0.6			12	0.1			82	0.7			0.2
Total MBS/CMO/ABS/CDO	$	1,018	9.1	%	$	6,372	57.2	%	$	3,336	30.0	%	$	413	3.7	%	$	11,139	100.0	%		26.7	%
Sub-prime (Included above) (1)	$	—			$	5			$	1,634			$	37			$	1,676	15.0	%		4.0	%
Alt-A (Included above)	$	—			$	1,299			$	1			$	35			$	1,335	12.0	%		3.2	%

(1)	In addition to sub-prime exposure in fixed maturity securities, there is exposure of approximately $33 million through limited partnerships and credit default swaps.
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 March 31, 2008
(In millions)

Sub-Prime Fair Value Quality Distribution by Vintage Year

																	<BBB & Equity
	AAA				AA				A				BBB				Tranches				Total
2007	$	161	10.7	%	$	1	0.1	%	$	5	0.3	%	$	—	—	%	$	—	—	%	$	167	11.1	%
2006		752	49.9			33	2.2			5	0.3			—	—			20	1.3			810	53.7
2005		216	14.3			53	3.5			17	1.1			10	0.7			2	0.1			298	19.7
2004		16	1.1			26	1.7			81	5.4			8	0.5			1	0.1			132	8.8
2003 & prior		9	0.6			27	1.8			36	2.4			15	1.0			14	0.9			101	6.7
Total sub-prime	$	1,154	76.6	%	$	140	9.3	%	$	144	9.5	%	$	33	2.2	%	$	37	2.4	%	$	1,508	100.0	%

Sub-Prime Amortized Cost Quality Distribution by Vintage Year

																	<BBB & Equity
	AAA				AA				A				BBB				Tranches				Total
2007	$	157	9.4	%	$	1	0.1	%	$	5	0.3	%	$	—	—	%	$	—	—	%	$	163	9.8	%
2006		763	45.4			53	3.2			10	0.6			—	—			49	2.9			875	52.1
2005		216	12.8			75	4.5			40	2.4			11	0.7			2	0.1			344	20.5
2004		16	1.0			30	1.8			110	6.6			10	0.6			1	0.1			167	10.1
2003 & prior		9	0.5			35	2.1			51	3.0			18	1.1			14	0.8			127	7.5
Total sub-prime	$	1,161	69.1	%	$	194	11.7	%	$	216	12.9	%	$	39	2.4	%	$	66	3.9	%	$	1,676	100.0	%

Alt-A Fair Value Quality Distribution by Vintage Year

																	<BBB & Equity
	AAA				AA				A				BBB				Tranches				Total
2007	$	237	19.0	%	$	16	1.3	%	$	3	0.2	%	$	—	—	%	$	2	0.2	%	$	258	20.7	%
2006		127	10.2			20	1.6			18	1.4			12	1.0			2	0.2			179	14.4
2005		146	11.7			2	0.2			—	—			—	—			—	—			148	11.9
2004		518	41.5			1	0.1			—	—			—	—			—	—			519	41.6
2003 & prior		142	11.4			—	—			—	—			—	—			—	—			142	11.4
Total Alt-A	$	1,170	93.8	%	$	39	3.2	%	$	21	1.6	%	$	12	1.0	%	$	4	0.4	%	$	1,246	100.0	%

Alt-A Amortized Cost Quality Distribution by Vintage Year

																	<BBB & Equity
	AAA				AA				A				BBB				Tranches				Total
2007	$	252	18.9	%	$	16	3.1	%	$	3	0.8	%	$	—	—	%	$	2	0.2	%	$	273	23.0	%
2006		121	4.8			23	1.3			18	3.0			10	1.2			2	0.1			174	10.4
2005		164	8.8			3	0.2			—	—			—	—			—	—			167	9.0
2004		559	45.1			2	0.2			—	—			—	—			—	—			561	45.3
2003 & prior		160	12.3			—	—			—	—			—	—			—	—			160	12.3
Total Alt-A	$	1,256	89.9	%	$	44	4.8	%	$	21	3.8	%	$	10	1.2	%	$	4	0.3	%	$	1,335	100.0	%

7

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of March 31, 2008
(In millions)

MBS Distribution By Collateral Type & Quality

	15 Year				30 Year				ARM				Other				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
U.S. Government Agencies	$	25	$	26	$	512	$	512	$	416	$	412	$	69	$	68	$	1,022	$	1,018
AAA		—		—		—		—		—		—		—		—		—		—
AA		—		—		—		—		—		—		—		—		—		—
A		—		—		—		—		—		—		—		—		—		—
BBB		—		—		—		—		—		—		—		—		—		—
<BBB & Equity Tranches		—		—		—		—		—		—		—		—		—		—
Total MBS	$	25	$	26	$	512	$	512	$	416	$	412	$	69	$	68	$	1,022	$	1,018
Included in Total MBS:
Sub-prime	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Alt-A		—		—		—		—		—		—		—		—		—		—
Prime		25		26		512		512		416		412		69		68		1,022		1,018
Total MBS	$	25	$	26	$	512	$	512	$	416	$	412	$	69	$	68	$	1,022	$	1,018

CMO Distribution By Collateral Type & Quality

	15 Year				30 Year				ARM				Other				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
U.S. Government Agencies	$	153	$	151	$	420	$	416	$	—	$	—	$	656	$	670	$	1,229	$	1,237
AAA		326		347		2,897		3,101		1,182		1,237		368		388		4,773		5,073
AA		—		—		3		5		21		22		—		—		24		27
A		16		16		6		10		1		1		—		—		23		27
BBB		1		1		—		—		7		5		—		—		8		6
<BBB & Equity Tranches		1		1		—		—		1		1		—		—		2		2
Total CMO	$	497	$	516	$	3,326	$	3,532	$	1,212	$	1,266	$	1,024	$	1,058	$	6,059	$	6,372
Included in Total CMO:
Sub-prime	$	5	$	5	$	—	$	—	$	—	$	—	$	—	$	—	$	5	$	5
Alt-A		90		94		915		999		208		206		—		—		1,213		1,299
Prime		402		417		2,411		2,533		1,004		1,060		1,024		1,058		4,841		5,068
Total CMO	$	497	$	516	$	3,326	$	3,532	$	1,212	$	1,266	$	1,024	$	1,058	$	6,059	$	6,372

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 March 31, 2008
(In millions)

ABS Distribution By Collateral Type & Quality

	CMBS				RMBS				Auto Loans				Home Equity				Student Loans				Other				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
AAA	$	729	$	796	$	665	$	663	$	38	$	39	$	490	$	498	$	139	$	148	$	174	$	165	$	2,235	$	2,309
AA		114		150		54		76		—		—		85		117		—		—		1		1		254		344
A		21		34		98		144		11		11		26		34		—		—		1		1		157		224
BBB		14		19		15		19		315		311		18		20		—		—		19		22		381		391
<BBB & Equity Tranches		—		—		31		60		5		5		3		3		—		—		—		—		39		68
Total ABS	$	878	$	999	$	863	$	962	$	369	$	366	$	622	$	672	$	139	$	148	$	195	$	189	$	3,066	$	3,336
Included in Total ABS:
Sub-prime	$	—	$	—	$	863	$	962	$	—	$	—	$	622	$	672	$	—	$	—	$	—	$	—	$	1,485	$	1,634
Alt-A		—		—		—		—		—		—		—		—		—		—		1		1		1		1
Prime & Non-Residential Mortgages		878		999		—		—		369		366		—		—		139		148		194		188		1,580		1,701
Total ABS	$	878	$	999	$	863	$	962	$	369	$	366	$	622	$	672	$	139	$	148	$	195	$	189	$	3,066	$	3,336

CDO Distribution By Collateral Type & Quality

	CMBS				RMBS				CDS				Other				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
AAA	$	—	$	—	$	—	$	—	$	9	$	10	$	—	$	—	$	9	$	10
AA		31		67		20		23		—		—		—		—		51		90
A		93		213		9		9		24		63		—		—		126		285
BBB		8		12		4		4		—		—		—		—		12		16
<BBB & Equity Tranches		6		7		3		3		2		2		—		—		11		12
Total CDO	$	138	$	299	$	36	$	39	$	35	$	75	$	—	$	—	$	209	$	413
Included in Total CDO:
Sub-prime	$	—	$	—	$	4	$	4	$	14	$	33	$	—	$	—	$	18	$	37
Alt-A		—		—		32		35		—		—		—		—		32		35
Prime & Non-Residential Mortgages		138		299		—		—		21		42		—		—		159		341
Total CDO	$	138	$	299	$	36	$	39	$	35	$	75	$	—	$	—	$	209	$	413

ABS	— Asset-backed securities
CMBS	— Commerical mortgage-backed securities
RMBS	— Residential mortgage-backed securities
CDO	— Collateralized debt obligation
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
MARCH 31							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2008			2007			% Change			2008			2007			% Change			2008			2007			% Change
Gross written premiums	$	832		$	948			(12)	%	$	1,293		$	1,412			(8)	%	$	2,125		$	2,360			(10)	%
Net written premiums		771			867			(11	)		848			864			(2	)		1,619			1,731			(6	)
Net earned premiums		783			863			(9	)		873			845			3			1,656			1,708			(3	)
Net investment income		164			220			(25	)		132			149			(11	)		296			369			(20	)
Other revenues		14			11			27			53			42			26			67			53			26
Total operating revenues		961			1,094			(12	)		1,058			1,036			2			2,019			2,130			(5	)
Claims, benefits and expenses:
Net incurred claims and benefits		577			593			3			566			543			(4	)		1,143			1,136			(1	)
Policyholders’ dividends		4			3			(33	)		7			3			(133	)		11			6			(83	)
Amortization of deferred acquisition costs		179			194			8			184			182			(1	)		363			376			3
Other insurance related expenses		58			65			11			50			41			(22	)		108			106			(2	)
Other expenses		12			10			(20	)		51			42			(21	)		63			52			(21	)
Total claims, benefits and expenses		830			865			4			858			811			(6	)		1,688			1,676			(1	)
Operating income before income tax and minority interest		131			229			(43	)		200			225			(11	)		331			454			(27	)
Income tax expense on operating income		(36	)		(75	)		52			(64	)		(73	)		12			(100	)		(148	)		32
Minority interest		—			—			N/M			(12	)		(10	)		(20	)		(12	)		(10	)		(20	)
Net operating income from continuing operations		95			154			(38	)		124			142			(13	)		219			296			(26	)
Realized investment losses, net of participating policyholders’ and minority interests		(16	)		(24	)		33			(9	)		(14	)		36			(25	)		(38	)		34
Income tax benefit on realized investment losses		5			9			(44	)		4			5			(20	)		9			14			(36	)
Net income from continuing operations	$	84		$	139			(40)	%	$	119		$	133			(11)	%	$	203		$	272			(25)	%
FINANCIAL RATIOS
Loss & LAE		73.7	%		68.7	%					64.8	%		64.2	%					69.0	%		66.5	%
Acquisition expense		16.9			17.0						17.0			16.9						16.9			16.9
Underwriting expense		13.3			13.0						9.8			9.6						11.5			11.4
Expense		30.2			30.0						26.8			26.5						28.4			28.3
Dividend		0.5			0.4						0.8			0.3						0.7			0.3
Combined ratio		104.4	%		99.1	%					92.4	%		91.0	%					98.1	%		95.1	%
LOSS RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	53		$	30					$	—		$	2					$	53		$	32
Impact on loss & LAE ratio		6.8	%		3.5	%					—	%		0.3	%					3.2	%		1.9	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & ALAE reserve development	$	(35	)	$	13					$	17		$	7					$	(18	)	$	20
Prior year premium development		9			(26	)					(19	)		(10	)					(10	)		(36	)
Other (1)		7			5						(5	)		—						2			5
Total development & other	$	(19	)	$	(8	)				$	(7	)	$	(3	)				$	(26	)	$	(11	)
Impact of development & other on loss & LAE ratio		(2.6)	%		—	%					—	%		0.1	%					(1.3)	%		0.1	%

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

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
MARCH 31	P&C Operations												Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2008			2007			2008			2007			% Change			2008			2007			% Change			2008			2007			% Change
Net earned premiums	$	1,656		$	1,708		$	157		$	156			1	%	$	—		$	(1	)		N/M	%	$	1,813		$	1,863			(3)	%
Net investment income		296			369			84			161			(48	)		54			78			(31	)		434			608			(29	)
Other revenues		67			53			13			12			8			6			2			200			86			67			28
Total operating revenues		2,019			2,130			254			329			(23	)		60			79			(24	)		2,333			2,538			(8	)
Claims, benefits and expenses:
Net incurred claims and benefits		1,143			1,136			212			273			22			21			34			38			1,376			1,443			5
Policyholders’ dividends		11			6			2			(1	)		N/M			—			—			N/M			13			5			(160	)
Amortization of deferred acquisition costs		363			376			4			5			20			1			—			N/M			368			381			3
Other insurance related expenses		108			106			50			51			2			3			3			—			161			160			(1	)
Other expenses		63			52			5			9			44			32			31			(3	)		100			92			(9	)
Total claims, benefits and expenses		1,688			1,676			273			337			19			57			68			16			2,018			2,081			3
Operating income (loss) before income tax and minority interest		331			454			(19	)		(8	)		(138	)		3			11			(73	)		315			457			(31	)
Income tax (expense) benefit on operating income (loss)		(100	)		(148	)		16			10			60			2			(2	)		200			(82	)		(140	)		41
Minority interest		(12	)		(10	)		—			—			N/M			—			—			N/M			(12	)		(10	)		(20	)
Net operating income (loss) from continuing operations		219			296			(3	)		2			N/M			5			9			(44	)		221			307			(28	)
Realized investment gains (losses), net of participating policyholders’ and minority interests		(25	)		(38	)		(17	)		1			N/M			(9	)		16			(156	)		(51	)		(21	)		(143	)
Income tax (expense) benefit on realized investment gains (losses)		9			14			6			—			N/M			3			(6	)		150			18			8			125
Net income (loss) from continuing operations	$	203		$	272		$	(14	)	$	3			N/M	%	$	(1	)	$	19			(105)	%	$	188		$	294			(36)	%
							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	2008			2007			2008			2007			% Change			2008			2007			% Change			2008			2007			% Change
Gross written premiums	$	2,125		$	2,360		$	163		$	183			(11	)%	$	(1	)	$	2			(150)	%	$	2,287		$	2,545			(10	)%
Net written premiums		1,619			1,731			162			162			—			(3	)		(2	)		(50	)		1,778			1,891			(6	)
Net earned premiums		1,656			1,708			156			157			(1	)		—			(2	)		N/M			1,812			1,863			(3	)
FINANCIAL RATIOS
Loss & LAE		69.0	%		66.5	%		N/M	%		N/M	%					N/M	%		N/M	%					77.8	%		75.3	%
Acquisition expense		16.9			16.9			N/M			N/M						N/M			N/M						16.6			16.7
Underwriting expense		11.5			11.4			N/M			N/M						N/M			N/M						12.5			12.2
Expense		28.4			28.3			N/M			N/M						N/M			N/M						29.1			28.9
Dividend		0.7			0.3			N/M			N/M						N/M			N/M						0.6			0.3
Combined ratio		98.1	%		95.1	%		N/M	%		N/M	%					N/M	%		N/M	%					107.5	%		104.5	%

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CNA FINANCIAL CORPORATION
Financial Supplement
Analysis of Pretax Net Investment Income

(In millions)	Standard Lines
	1Q07		2Q07		3Q07			4Q07			2007		1Q08
Limited partnerships	$	23	$	36	$	12		$	21		$	92	$	(23	)
Income (loss) from trading securities		—		—		—			—			—		(1	)
Other investment income		197		199		197			193			786		188
Net investment income	$	220	$	235	$	209		$	214		$	878	$	164
	Specialty Lines
	1Q07		2Q07		3Q07			4Q07			2007		1Q08
Limited partnerships	$	12	$	20	$	7		$	12		$	51	$	(13	)
Income (loss) from trading securities		—		—		—			—			—		—
Other investment income		137		142		145			146			570		145
Net investment income	$	149	$	162	$	152		$	158		$	621	$	132
	P&C Operations
	1Q07		2Q07		3Q07			4Q07			2007		1Q08
Limited partnerships	$	35	$	56	$	19		$	33		$	143	$	(36	)
Income (loss) from trading securities		—		—		—			—			—		(1	)
Other investment income		334		341		342			339			1,356		333
Net investment income	$	369	$	397	$	361		$	372		$	1,499	$	296
	Life & Group Non-Core
	1Q07		2Q07		3Q07			4Q07			2007		1Q08
Limited partnerships	$	9	$	3	$	(4	)	$	2		$	10	$	4
Income (loss) from trading securities		3		40		(2	)		(31	)		10		(76	)
Other investment income		149		145		151			157			602		156
Net investment income	$	161	$	188	$	145		$	128		$	622	$	84
	Corporate & Other Non-Core
	1Q07		2Q07		3Q07			4Q07			2007		1Q08
Limited partnerships	$	8	$	12	$	4		$	6		$	30	$	(7	)
Income (loss) from trading securities		—		—		—			—			—		—
Other investment income		70		74		70			68			282		61
Net investment income	$	78	$	86	$	74		$	74		$	312	$	54
	Total Operations
	1Q07		2Q07		3Q07			4Q07			2007		1Q08
Limited partnerships	$	52	$	71	$	19		$	41		$	183	$	(39	)
Income (loss) from trading securities		3		40		(2	)		(31	)		10		(77	)
Other investment income		553		560		563			564			2,240		550
Net investment income	$	608	$	671	$	580		$	574		$	2,433	$	434

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CNA FINANCIAL CORPORATION
Financial Supplement
Statutory Data — Preliminary

PERIOD ENDED MARCH 31	Three Months
Income Statement	(Preliminary)						Fav / (Unfav)
(In millions)	2008			2007			% Change
Property & Casualty Companies
Gross written premiums	$	2,302		$	2,474			(7)	%
Net written premiums		1,635			1,729			(5	)
Net earned premiums		1,476			1,546			(5	)
Claim and claim adjustment expenses		1,195			1,198			—
Acquisition expenses		265			282			6
Underwriting expenses		207			221			6
Policyholders’ dividends		4			7			43
Underwriting loss		(195	)		(162	)		(20	)
Net investment income		493			496			(1	)
Other revenues (expenses)		6			(5	)		N/M
Income tax expense		(61	)		(101	)		40
Net realized gains (losses)		5			(17	)		129
Net income	$	248		$	211			18	%
Financial Ratios
Loss and LAE		81.0	%		77.4	%
Acquisition expense		16.2			16.3
Underwriting expense		12.6			12.8
Expense		28.8			29.1
Dividend		0.3			0.5
Combined ratio		110.1	%		107.0	%
Life Company
Earned premium	$	—		$	—

SUPPLEMENTAL STATUTORY DATA

	(Preliminary)
(In millions)	March 31, 2008		December 31, 2007
Property & Casualty Companies
Statutory surplus (1)	$	8,110	$	8,511
Life Company
Statutory surplus	$	523	$	471

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

13

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

	Standard Lines
	2008 YTD			2007 FY			2007 FY
	Evaluated			Evaluated			Evaluated
	at 03/31/08			at 12/31/07			at 03/31/08
Gross Accident Year		75.7	%		66.6	%		66.3	%
Impact of Reinsurance		0.6			3.5			3.5
Net Accident Year		76.3			70.1			69.8	%
Impact of Development and Other (1)		(2.6	)		(2.7	)
Net Calendar Year		73.7	%		67.4	%

	Specialty Lines
	2008 YTD			2007 FY			2007 FY
	Evaluated			Evaluated			Evaluated
	at 03/31/08			at 12/31/07			at 03/31/08
Gross Accident Year		62.8	%		59.2	%		59.0	%
Impact of Reinsurance		2.0			4.6			4.4
Net Accident Year		64.8			63.8			63.4	%
Impact of Development and Other (1)		—			(1.0	)
Net Calendar Year		64.8	%		62.8	%

	P&C Operations
	2008 YTD			2007 FY			2007 FY
	Evaluated			Evaluated			Evaluated
	at 03/31/08			at 12/31/07			at 03/31/08
Gross Accident Year		68.0	%		62.2	%		62.0	%
Impact of Reinsurance		2.3			4.7			4.5
Net Accident Year		70.3			66.9			66.5	%
Impact of Development and Other (1)		(1.3	)		(1.8	)
Net Calendar Year		69.0	%		65.1	%

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

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