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) July 28, 2008

CNA FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

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

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

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

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

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

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

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

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

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

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 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 second 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 July 28, 2008, providing information on the second quarter 2008 results of operations.
99.2	CNA Financial Corporation financial supplement, posted on its website July 28, 2008, providing supplemental financial information on the second quarter 2008.

SIGNATURES

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

		CNA Financial Corporation
		(Registrant)
Date:  July 28, 2008	By	/s/ D. Craig Mense
		(Signature)
		D. Craig Mense
		Executive Vice President and
		Chief Financial Officer

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACT:
MEDIA:	ANALYSTS:
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
2nd QUARTER 2008 RESULTS

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

• Net operating income of $250 million, or $0.93 per diluted share.

• Net income of $181 million, or $0.67 per diluted share.

• Property & Casualty Operations combined ratio of 97.7%.

• Net operating return on equity of 9.8%

• Book value per common share of $34.74 at June 30, 2008, as compared to $37.36 at December 31, 2007.

	Results for the Three Months						Results for the Six Months
	Ended June 30						Ended June 30
($ millions)	2008			2007			2008			2007
Net operating income (a)	$	250		$	318		$	471		$	625
Net realized investment losses		(71	)		(91	)		(104	)		(104	)
Net income from continuing operations		179			227			367			521
Net income (loss) from discontinued operations		2			(10	)		1			(8	)
Net income	$	181		$	217		$	368		$	513

(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						Results for the Six Months
	Ended June 30						Ended June 30
	2008			2007			2008			2007
Net operating income	$	0.93		$	1.17		$	1.75		$	2.30
Net realized investment losses		(0.27	)		(0.33	)		(0.39	)		(0.38	)
Net income from continuing operations		0.66			0.84			1.36			1.92
Net income (loss) from discontinued operations		0.01			(0.04	)		—			(0.03	)
Net income	$	0.67		$	0.80		$	1.36		$	1.89

Net operating income from continuing operations for the three months ended June 30, 2008 decreased $68 million as compared with the same period in 2007. Net operating results for our core Property & Casualty Operations decreased $56 million, while our Non-Core operations decreased $12 million. This overall decrease was primarily due to lower net investment income, decreased current accident year underwriting results in our core Property & Casualty Operations and increased catastrophe losses, partially offset by lower expenses. The Property & Casualty Operations produced combined ratios of 97.7% and 94.7% in the second quarters of 2008 and 2007.

Pretax net investment income for the second quarter of 2008 decreased $95 million over the same period of 2007. This decrease was primarily driven by decreased results from the trading portfolio and limited partnerships. The decreased results from the trading portfolio were more than offset by a corresponding decrease in the policyholders’ funds reserves supported by the trading portfolio.

Net income for the three months ended June 30, 2008 decreased $36 million as compared with the same period in 2007. This decrease was primarily due to decreased net operating income.

“Competitive market conditions continue to test CNA’s strategies, but our core Property & Casualty Operations are responding well,” said Stephen W. Lilienthal, Chairman and Chief Executive Officer of CNA Financial Corporation. “While our second quarter earnings were impacted by reduced investment income, we continue to build on a foundation of financial strength, disciplined underwriting and pro-active expense management.”

Net operating income from continuing operations for the six months ended June 30, 2008 decreased $154 million as compared with the same period in 2007. Net operating income for our core Property & Casualty Operations decreased $133 million, while our Non-Core operations decreased $21 million. This overall decrease was primarily due to lower net investment income, decreased current accident year underwriting results in our core Property & Casualty Operations and increased catastrophe losses, partially offset by lower expenses. The Property & Casualty Operations produced combined ratios of 97.9% and 94.9% for the six months ended June 30, 2008 and 2007.

Pretax net investment income for the six months ended June 30, 2008 decreased $269 million over the same period in 2007, due to the same reasons as discussed above for the three month period.

Net income for the six months ended June 30, 2008 decreased $145 million as compared with the same period in 2007. This decrease was due to decreased net operating income.

Page 2 of 6

Segment Results for the Three Months Ended June 30, 2008

													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		$	(30	)	$	11		$	250
Net realized investment losses		(39	)		(19	)		(58	)		(4	)		(9	)		(71	)
Net income (loss) from continuing operations	$	85		$	126		$	211		$	(34	)	$	2		$	179

Segment Results for the Three Months Ended June 30, 2007

													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income (loss)	$	146		$	179		$	325		$	(13	)	$	6		$	318
Net realized investment losses		(42	)		(23	)		(65	)		(12	)		(14	)		(91	)
Net income (loss) from continuing operations	$	104		$	156		$	260		$	(25	)	$	(8	)	$	227

Segment Results for the Six Months Ended June 30, 2008

													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income (loss)	$	219		$	269		$	488		$	(33	)	$	16		$	471
Net realized investment losses		(50	)		(24	)		(74	)		(15	)		(15	)		(104	)
Net income (loss) from continuing operations	$	169		$	245		$	414		$	(48	)	$	1		$	367

Segment Results for the Six Months Ended June 30, 2007

													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income (loss)	$	300		$	321		$	621		$	(11	)	$	15		$	625
Net realized investment losses		(57	)		(32	)		(89	)		(11	)		(4	)		(104	)
Net income (loss) from continuing operations	$	243		$	289		$	532		$	(22	)	$	11		$	521

Page 3 of 6

Property & Casualty Operations Gross Written Premiums

	Three Months Ended June 30				Six Months Ended June 30
($ millions)	2008		2007		2008		2007
Standard Lines	$	944	$	992	$	1,776	$	1,940
Specialty Lines		1,281		1,379		2,574		2,791
Total P&C Operations	$	2,225	$	2,371	$	4,350	$	4,731

Property & Casualty Operations Net Written Premiums

	Three Months Ended June 30				Six Months Ended June 30
($ millions)	2008		2007		2008		2007
Standard Lines	$	848	$	904	$	1,619	$	1,771
Specialty Lines		860		869		1,708		1,733
Total P&C Operations	$	1,708	$	1,773	$	3,327	$	3,504

Property & Casualty Calendar Year Loss Ratios

	Three Months Ended June 30						Six Months Ended June 30
	2008			2007			2008			2007
Standard Lines		73.7	%		69.0	%		73.7	%		68.8	%
Specialty Lines		65.2	%		61.1	%		65.0	%		62.6	%
Total P&C Operations		69.2	%		64.9	%		69.1	%		65.7	%
Total P&C Companies (a)		80.3	%		75.0	%		79.0	%		75.1	%

Property & Casualty Calendar Year Combined Ratios

	Three Months Ended June 30						Six Months Ended June 30
	2008			2007			2008			2007
Standard Lines		103.2	%		102.6	%		103.8	%		100.8	%
Specialty Lines		92.9	%		87.0	%		92.6	%		89.0	%
Total P&C Operations		97.7	%		94.7	%		97.9	%		94.9	%
Total P&C Companies (a)		109.2	%		105.2	%		108.3	%		104.8	%

(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
	June 30, 2008			December 31, 2007			June 30, 2008
Standard Lines		74.2	%		66.6	%		66.2	%
Specialty Lines		62.8	%		59.2	%		59.1	%
Total P&C Operations		67.4	%		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
	June 30, 2008			December 31, 2007			June 30, 2008
Standard Lines		75.9	%		70.1	%		70.0	%
Specialty Lines		64.9	%		63.8	%		63.7	%
Total P&C Operations		70.1	%		66.9	%		66.8	%

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 $56 million for the second quarter of 2008 as compared with the same period in 2007. Standard Lines retention decreased 1 point to 80% as compared to the same period in 2007. Rates on average decreased 6% during the second quarter of 2008.

• Net income and net operating income decreased $19 million and $22 million for the second quarter of 2008 as compared with the same period in 2007. These decreases were primarily driven by lower net investment income, higher catastrophe losses and decreased current accident year underwriting results. The catastrophe losses were $29 million after-tax in the second quarter of 2008, as compared to $8 million after-tax in the second quarter of 2007. These decreases were partially offset by increased favorable net prior year development and lower expenses.

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 $9 million for the second quarter of 2008 as compared with the same period in 2007. Specialty Lines retention decreased 1 point to 83% as compared to the same period in 2007. Rates on average decreased 4% during the second quarter of 2008.

• Net income and net operating income decreased $30 million and $34 million for the second quarter of 2008 as compared with the same period in 2007. These decreases were primarily driven by unfavorable net prior year development for the three months ended June 30, 2008 as compared to favorable net prior year development for the same period in 2007 and decreased current accident year underwriting results. The 2007 results included favorable experience and a change in estimate related to dealer profit commissions in the warranty line of business.

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 loss for the second quarter of 2008 increased $9 million as compared with the same period in 2007. This increase was primarily attributable to adverse investment performance on a portion of our pension deposit business and unfavorable long term care experience. These unfavorable impacts were partially offset by lower net realized investment losses.

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 second quarter of 2008 increased $10 million as compared with the same period in 2007. The 2007 results included current accident year losses related to certain mass torts. This favorable impact was partially offset by lower net investment income in 2008.

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. ET today. On the conference call will be Stephen W. Lilienthal, Chairman and Chief Executive Officer of CNA Financial Corporation, and other members of senior management. Participants can access the call by dialing (888) 778-8903, or for international callers, (913) 312-0378. 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 August 4, 2008 by dialing (888) 203-1112, or for international callers, (719) 457-0820. The replay passcode is 9320444. The replay will also be available on CNA’s website. Financial supplement information related to the second quarter results is available on the investor relations pages of the CNA website or by contacting David Adams at (312) 822-2183.

FINANCIAL MEASURES

In evaluating the results of the Standard Lines and Specialty Lines, management utilizes the combined ratio, the loss ratio, the expense ratio and the dividend ratio. These ratios are calculated using accounting principles generally accepted in the United States of America (GAAP) financial results. The loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums. The expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums. The dividend ratio is the ratio of policyholders’ dividends incurred to net earned premiums. The combined ratio is the sum of the loss, expense and dividend ratios.

This press release may also reference or contain financial measures that are not in accordance with 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

June 30, 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
June 30, 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 (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 (Six Months Ended)		12
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Six 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

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

							Fav /									Fav /
PERIOD ENDED JUNE 30	Three Months						(Unfav)			Six Months						(Unfav)
(In millions)	2008			2007			% Change			2008			2007			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,774		$	1,872			(5	)%	$	3,587		$	3,735			(4	)%
Net investment income		576			671			(14	)		1,010			1,279			(21	)
Realized investment losses, net of participating policyholders’ and minority interests		(111	)		(139	)		20			(162	)		(160	)		(1	)
Other revenues		82			65			26			168			132			27
Total revenues		2,321			2,469			(6	)		4,603			4,986			(8	)
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,472			1,473			—			2,861			2,921			2
Amortization of deferred acquisition costs		360			372			3			728			753			3
Other operating expenses		203			260			22			430			478			10
Interest		33			35			6			67			69			3
Total claims, benefits and expenses		2,068			2,140			3			4,086			4,221			3
Income before income tax and minority interest		253			329			(23	)		517			765			(32	)
Income tax expense		(62	)		(91	)		32			(126	)		(223	)		43
Minority interest		(12	)		(11	)		(9	)		(24	)		(21	)		(14	)
Income from continuing operations		179			227			(21	)		367			521			(30	)
Income (loss) from discontinued operations, net of tax		2			(10	)		120			1			(8	)		113
Net income	$	181		$	217			(17	)%	$	368		$	513			(28	)%

1

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

							Fav /									Fav /
PERIOD ENDED JUNE 30	Three Months						(Unfav)			Six Months						(Unfav)
(In millions, except per share data)	2008			2007			% Change			2008			2007			% Change
COMPONENTS OF NET INCOME
Net operating income	$	250		$	318			(21	)%	$	471		$	625			(25	)%
Net realized investment losses, net of participating policyholders’ and minority interests		(71	)		(91	)		22			(104	)		(104	)		—
Income from continuing operations		179			227			(21	)		367			521			(30	)
Income (loss) from discontinued operations, net of tax		2			(10	)		120			1			(8	)		113
Net income	$	181		$	217			(17	)%	$	368		$	513			(28	)%
BASIC AND DILUTED EARNINGS PER SHARE
Net operating income	$	0.93		$	1.17			(21	)%	$	1.75		$	2.30			(24	)%
Net realized investment losses, net of participating policyholders’ and minority interests		(0.27	)		(0.33	)		18			(0.39	)		(0.38	)		(3	)
Income from continuing operations		0.66			0.84			(21	)		1.36			1.92			(29	)
Income (loss) from discontinued operations, net of tax		0.01			(0.04	)		125			—			(0.03	)		N/M
Basic earnings per share available to common stockholders	$	0.67		$	0.80			(16	)%	$	1.36		$	1.89			(28	)%
WEIGHTED AVERAGE OUTSTANDING COMMON STOCK AND COMMON STOCK EQUIVALENTS
Basic		269.0			271.6						269.9			271.5
Diluted		269.1			271.9						270.0			271.8
RETURN ON EQUITY
Net income (1)		7.7	%		8.6	%					7.5	%		10.4	%
Net operating income (2)		9.8			13.2						9.3			13.2

(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)	June 30, 2008			December 31, 2007
Total assets	$	55,181		$	56,759
Insurance reserves		39,754			40,222
Debt		2,007			2,157
Total liabilities		45,437			46,224
Minority interest		398			385
Accumulated other comprehensive income (loss)		(921	)		103
Total stockholders’ equity		9,346			10,150
Book value per common share	$	34.74		$	37.36
Book value per common share excluding AOCI	$	38.16		$	36.98
Outstanding shares of common stock (in millions of shares)		269.0			271.7

THREE MONTHS ENDED JUNE 30
(In millions)	2008			2007
Net cash flows provided by operating activities (1)	$	509		$	324
Net cash flows used by investing activities		(242	)		(328	)
Net cash flows used by financing activities		(321	)		(28	)
Net cash flows from operating, investing and financing activities	$	(54	)	$	(32	)

SIX MONTHS ENDED JUNE 30
(In millions)	2008			2007
Net cash flows provided by operating activities (1)	$	812		$	541
Net cash flows used by investing activities		(231	)		(529	)
Net cash flows used by financing activities		(594	)		(54	)
Net cash flows from operating, investing and financing activities	$	(13	)	$	(42	)

(1) Operating cash flows for the three and six months ended June 30, 2008 include $(2) million and $2 million related to discontinued operations. Operating cash flows for the three and six months ended June 30, 2007 include $(7) million and $(25) million related to discontinued operations.

3

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

THREE MONTHS ENDED JUNE 30, 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	$	11,987		$	8,602		$	20,589		$	3,006		$	4,907		$	28,502
Ceded		2,107			1,795			3,902			1,111			1,915			6,928
Net		9,880			6,807			16,687			1,895			2,992			21,574
Net incurred claim & claim adjustment expenses		566			560			1,126			142			34			1,302
Net claim & claim adjustment expense payments		(580	)		(477	)		(1,057	)		(126	)		(158	)		(1,341	)
Foreign currency translation adjustment		—			(3	)		(3	)		1			—			(2	)
Claim & claim adjustment expense reserves, end of period
Net		9,866			6,887			16,753			1,912			2,868			21,533
Ceded		2,110			1,633			3,743			1,060			1,866			6,669
Gross	$	11,976		$	8,520		$	20,496		$	2,972		$	4,734		$	28,202

SIX MONTHS ENDED JUNE 30, 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		1,143			1,130			2,273			260			58			2,591
Net claim & claim adjustment expense payments		(1,197	)		(867	)		(2,064	)		(230	)		(303	)		(2,597	)
Foreign currency translation adjustment		—			7			7			2			(2	)		7
Claim & claim adjustment expense reserves, end of period
Net		9,866			6,887			16,753			1,912			2,868			21,533
Ceded		2,110			1,633			3,743			1,060			1,866			6,669
Gross	$	11,976		$	8,520		$	20,496		$	2,972		$	4,734		$	28,202

4

CNA FINANCIAL CORPORATION
Financial Supplement
Investments by Segment Aggregation

	June 30, 2008					March 31, 2008					December 31, 2007
(In millions)	Book Value			Fair Value		Book Value			Fair Value		Book Value			Fair Value
Property & Casualty and Corporate & Other Non-Core:
Fixed maturities — taxable	$	17,976		$	16,936	$	19,240		$	18,192	$	19,351		$	18,951
Fixed maturities — tax exempt		5,179			4,990		5,318			5,202		5,815			5,810
Equities		753			836		245			434		254			459
Short-term investments		4,922			4,920		5,033			5,034		4,385			4,387
Limited partnership investments		2,067			2,067		1,926			1,926		1,877			1,877
Other		4			8		7			16		8			71
Total investments	$	30,901		$	29,757	$	31,769		$	30,804	$	31,690		$	31,555
Net receivable/(payable)	$	256				$	246				$	(265	)
Securities lending collateral		—					(878	)				(53	)
Life & Group Non-Core:
Fixed maturities — taxable	$	6,862		$	6,791	$	7,484		$	7,347	$	7,422		$	7,631
Fixed maturities — tax exempt		1,974			1,843		1,914			1,755		1,800			1,865
Equities		751			583		42			40		112			109
Short-term investments		144			144		313			313		290			290
Limited partnership investments		254			254		319			319		337			337
Other		1			1		3			3		2			2
Total investments	$	9,986		$	9,616	$	10,075		$	9,777	$	9,963		$	10,234
Net receivable/(payable)	$	(5	)			$	(17	)			$	1
Securities lending collateral		—					—					—
Total investments	$	40,887		$	39,373	$	41,844		$	40,581	$	41,653		$	41,789
Total net receivable/(payable)	$	251				$	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 Sheet, the amounts above exclude $27 million, $73 million, and $53 million as of June 30, 2008, 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 June 30, 2008
(In millions)

Invested Assets Fair Value By Segment

	P&C and
	Corporate & Other				Life & Group
	Non-Core		%		Non-Core		%		Total		%
MBS/CMO/ABS/CDO	$	8,999		22.9	$	931		2.3	$	9,930		25.2
Other taxable fixed maturities		7,937		21.1		5,860		16.3		13,797		37.4
Tax exempt fixed maturities		4,990		12.7		1,843		4.7		6,833		17.4
All other		7,831		18.9		982		1.1		8,813		20.0
Total investments	$	29,757		75.6	$	9,616		24.4	$	39,373		100.0

Invested Assets Amortized Cost By Segment

	P&C and
	Corporate & Other				Life & Group
	Non-Core		%		Non-Core		%		Total		%
MBS/CMO/ABS/CDO	$	9,709		23.8	$	1,005		2.4	$	10,714		26.2
Other taxable fixed maturities		8,267		21.4		5,857		16.1		14,124		37.5
Tax exempt fixed maturities		5,179		12.7		1,974		4.8		7,153		17.5
All other		7,746		17.7		1,150		1.1		8,896		18.8
Total investments	$	30,901		75.6	$	9,986		24.4	$	40,887		100.0

MBS/CMO/ABS/CDO Fair Value Distribution

																					% of Total
	MBS		%		CMO		%		ABS		%		CDO		%		Total		%		Investments
U.S. Government Agencies	$	638		6.4	$	1,120		11.3	$	—		—	$	—		—	$	1,758		17.7		4.5
AAA		—		—		4,796		48.3		2,238		22.5		9		0.1		7,043		70.9		17.9
AA		—		—		150		1.5		329		3.3		29		0.3		508		5.1		1.3
A		—		—		8		0.1		131		1.3		116		1.2		255		2.6		0.6
BBB		—		—		1		—		278		2.8		7		0.1		286		2.9		0.7
<BBB & Equity Tranches		—		—		5		0.1		61		0.6		14		0.1		80		0.8		0.2
Total MBS/CMO/ABS/CDO	$	638		6.4	$	6,080		61.3	$	3,037		30.5	$	175		1.8	$	9,930		100.0		25.2
Sub-prime (Included Above)	$	—			$	1			$	1,558			$	10			$	1,569		15.8		4.0
Alt-A (Included Above)	$	—			$	1,218			$	—			$	12			$	1,230		12.4		3.1

MBS/CMO/ABS/CDO Amortized Cost Distribution

																					% of Total
	MBS		%		CMO		%		ABS		%		CDO		%		Total		%		Investments
U.S. Government Agencies	$	650		6.1	$	1,148		10.7	$	—		—	$	—		—	$	1,798		16.8		4.4
AAA		—		—		5,074		47.4		2,319		21.6		10		0.1		7,403		69.1		18.1
AA		—		—		175		1.6		428		4.0		67		0.6		670		6.2		1.7
A		—		—		13		0.1		190		1.8		248		2.3		451		4.2		1.1
BBB		—		—		1		—		284		2.7		12		0.1		297		2.8		0.7
<BBB & Equity Tranches		—		—		5		0.1		76		0.7		14		0.1		95		0.9		0.2
Total MBS/CMO/ABS/CDO	$	650		6.1	$	6,416		59.9	$	3,297		30.8	$	351		3.2	$	10,714		100.0		26.2
Sub-prime (Included Above)	$	—			$	1			$	1,668			$	33			$	1,702		15.9		4.2
Alt-A (Included Above)	$	—			$	1,321			$	—			$	12			$	1,333		12.4		3.3

(1)	In addition to sub-prime exposure in fixed maturity securities, there is exposure of approximately $44 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 June 30, 2008
(In millions)

Sub-Prime Fair Value Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2007	$	160		10.2	$	—		—	$	1		0.1	$	—		—	$	1		0.1	$	162		10.4
2006		868		55.3		68		4.3		5		0.3		—		—		16		1.1		957		61.0
2005		174		11.1		56		3.6		10		0.6		6		0.4		2		0.1		248		15.8
2004		15		1.0		24		1.5		63		4.0		—		—		10		0.6		112		7.1
2003 & prior		8		0.5		24		1.5		34		2.2		6		0.4		18		1.1		90		5.7
Total sub-prime	$	1,225		78.1	$	172		10.9	$	113		7.2	$	12		0.8	$	47		3.0	$	1,569		100.0

Sub-Prime Amortized Cost Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2007	$	155		9.1	$	—		—	$	1		0.1	$	—		—	$	1		—	$	157		9.2
2006		876		51.5		86		5.0		6		0.3		—		—		16		1.0		984		57.8
2005		176		10.4		72		4.2		36		2.1		6		0.3		4		0.3		294		17.3
2004		16		0.9		28		1.7		95		5.6		—		—		12		0.7		151		8.9
2003 & prior		9		0.5		32		1.9		46		2.7		8		0.5		21		1.2		116		6.8
Total sub-prime	$	1,232		72.4	$	218		12.8	$	184		10.8	$	14		0.8	$	54		3.2	$	1,702		100.0

Alt-A Fair Value Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2007	$	247		20.1	$	1		0.1	$	1		—	$	—		—	$	6		0.5	$	255		20.7
2006		169		13.7		1		0.1		8		0.7		1		0.1		4		0.3		183		14.9
2005		171		13.9		2		0.1		—		—		—		—		—		—		173		14.0
2004		484		39.4		1		0.1		—		—		—		—		—		—		485		39.5
2003 & prior		134		10.9		—		—		—		—		—		—		—		—		134		10.9
Total Alt-A	$	1,205		98.0	$	5		0.4	$	9		0.7	$	1		0.1	$	10		0.8	$	1,230		100.0

Alt-A Amortized Cost Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2007	$	264		19.8	$	1		—	$	2		0.2	$	—		—	$	6		0.5	$	273		20.5
2006		162		12.2		1		—		8		0.6		1		0.1		4		0.3		176		13.2
2005		188		14.1		3		0.2		—		—		—		—		—		—		191		14.3
2004		539		40.4		2		0.2		—		—		—		—		—		—		541		40.6
2003 & prior		152		11.4		—		—		—		—		—		—		—		—		152		11.4
Total Alt-A	$	1,305		97.9	$	7		0.4	$	10		0.8	$	1		0.1	$	10		0.8	$	1,333		100.0

7 

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of June 30, 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	$	24	$	24	$	516	$	526	$	76	$	78	$	22	$	22	$	638	$	650
AAA		—		—		—		—		—		—		—		—		—		—
AA		—		—		—		—		—		—		—		—		—		—
A		—		—		—		—		—		—		—		—		—		—
BBB		—		—		—		—		—		—		—		—		—		—
<BBB & Equity Tranches		—		—		—		—		—		—		—		—		—		—
Total MBS	$	24	$	24	$	516	$	526	$	76	$	78	$	22	$	22	$	638	$	650
Included in Total MBS:
Sub-prime	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Alt-A		—		—		—		—		—		—		—		—		—		—
Prime		24		24		516		526		76		78		22		22		638		650
Total MBS	$	24	$	24	$	516	$	526	$	76	$	78	$	22	$	22	$	638	$	650

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	$	138	$	140	$	386	$	386	$	—	$	—	$	596	$	622	$	1,120	$	1,148
AAA		316		339		2,702		2,899		1,301		1,342		477		494		4,796		5,074
AA		—		—		141		164		5		6		4		5		150		175
A		2		2		—		—		6		11		—		—		8		13
BBB		—		—		—		—		1		1		—		—		1		1
<BBB & Equity Tranches		—		—		—		—		5		5		—		—		5		5
Total CMO	$	456	$	481	$	3,229	$	3,449	$	1,318	$	1,365	$	1,077	$	1,121	$	6,080	$	6,416
Included in Total CMO:
Sub-prime	$	1	$	1	$	—	$	—	$	—		—	$	—	$	—	$	1	$	1
Alt-A		76		81		907		1,013		235		227		—		—		1,218		1,321
Prime		379		399		2,322		2,436		1,083		1,138		1,077		1,121		4,861		5,094
Total CMO	$	456	$	481	$	3,229	$	3,449	$	1,318	$	1,365	$	1,077	$	1,121	$	6,080	$	6,416

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 June 30, 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	$	722	$	766	$	736	$	739	$	33	$	33	$	489	$	493	$	115	$	148	$	143	$	140	$	2,238	$	2,319
AA		152		204		89		103		4		5		83		115		—		—		1		1		329		428
A		22		33		77		121		6		6		26		30		—		—		—		—		131		190
BBB		13		20		6		8		253		250		6		6		—		—		—		—		278		284
<BBB & Equity Tranches		—		—		33		37		2		2		13		16		—		—		13		21		61		76
Total ABS	$	909	$	1,023	$	941	$	1,008	$	298	$	296	$	617	$	660	$	115	$	148	$	157	$	162	$	3,037	$	3,297
Included in Total ABS:
Sub-prime	$	—	$	—	$	941	$	1,008	$	—	$	—	$	617	$	660	$	—	$	—	$	—	$	—	$	1,558	$	1,668
Alt-A		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Prime & Non-Residential Mortgages		909		1,023		—		—		298		296		—		—		115		148		157		162		1,479		1,629
Total ABS	$	909	$	1,023	$	941	$	1,008	$	298	$	296	$	617	$	660	$	115	$	148	$	157	$	162	$	3,037	$	3,297

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		29		67		—		—		—		—		—		—		29		67
A		89		187		8		8		19		53		—		—		116		248
BBB		7		12		—		—		—		—		—		—		7		12
<BBB & Equity Tranches		7		6		5		6		2		2		—		—		14		14
Total CDO	$	132	$	272	$	13	$	14	$	30	$	65	$	—	$	—	$	175	$	351
Included in Total CDO:
Sub-prime	$	—	$	—	$	1	$	1	$	9	$	32	$	—	$	—	$	10	$	33
Alt-A		—		—		12		12		—		—		—		—		12		12
Prime & Non-Residential Mortgages		132		272		—		1		21		33		—		—		153		306
Total CDO	$	132	$	272	$	13	$	14	$	30	$	65	$	—	$	—	$	175	$	351

ABS	— Asset-backed securities
CMBS	— Commercial 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
JUNE 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2008			2007			% Change			2008			2007			% Change			2008			2007			% Change
Gross written premiums	$	944		$	992			(5)	%	$	1,281		$	1,379			(7)	%	$	2,225		$	2,371			(6)	%
Net written premiums		848			904			(6	)		860			869			(1	)		1,708			1,773			(4	)
Net earned premiums		768			842			(9	)		859			870			(1	)		1,627			1,712			(5	)
Net investment income		199			235			(15	)		155			162			(4	)		354			397			(11	)
Other revenues		15			12			25			54			47			15			69			59			17
Total operating revenues		982			1,089			(10	)		1,068			1,079			(1	)		2,050			2,168			(5	)
Claims, benefits and expenses:
Net incurred claims and benefits		566			581			3			559			531			(5	)		1,125			1,112			(1	)
Policyholders’ dividends		3			(4	)		(175	)		1			1			—			4			(3	)		N/M
Amortization of deferred acquisition costs		175			191			8			184			177			(4	)		359			368			2
Other insurance related expenses		48			96			50			53			48			(10	)		101			144			30
Other expenses		12			14			14			41			39			(5	)		53			53			—
Total claims, benefits and expenses		804			878			8			838			796			(5	)		1,642			1,674			2
Operating income before income tax and minority interest		178			211			(16	)		230			283			(19	)		408			494			(17	)
Income tax expense on operating income		(54	)		(65	)		17			(74	)		(94	)		21			(128	)		(159	)		19
Minority interest		—			—			N/M			(11	)		(10	)		(10	)		(11	)		(10	)		(10	)
Net operating income from continuing operations		124			146			(15	)		145			179			(19	)		269			325			(17	)
Realized investment losses, net of participating policyholders’ and minority interests		(60	)		(63	)		5			(29	)		(35	)		17			(89	)		(98	)		9
Income tax benefit on realized investment losses		21			21			—			10			12			(17	)		31			33			(6	)
Net income from continuing operations	$	85		$	104			(18)	%	$	126		$	156			(19)	%	$	211		$	260			(19)	%
FINANCIAL RATIOS
Loss & LAE		73.7	%		69.0	%					65.2	%		61.1	%					69.2	%		64.9	%
Acquisition expense		14.6			20.1						17.2			16.1						16.0			18.1
Underwriting expense		14.4			13.9						10.4			9.6						12.2			11.8
Expense		29.0			34.0						27.6			25.7						28.2			29.9
Dividend		0.5			(0.4	)					0.1			0.2						0.3			(0.1	)
Combined ratio		103.2	%		102.6	%					92.9	%		87.0	%					97.7	%		94.7	%
LOSS RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	45		$	12					$	2		$	—					$	47		$	12
Impact on loss & LAE ratio		5.9	%		1.4	%					0.2	%		—	%					2.9	%		0.7	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & ALAE reserve development (1)	$	(15	)	$	(20	)				$	1		$	(14	)				$	(14	)	$	(34	)
Prior year premium development		(8	)		16						1			—						(7	)		16
Other (2)		8			7						—			—						8			7
Total development & other	$	(15	)	$	3					$	2		$	(14	)				$	(13	)	$	(11	)
Impact of development & other on loss & LAE ratio		(1.9)	%		(0.1)	%					0.2	%		(1.6)	%					(0.8)	%		(1.0)	%

(1)	In 2008, Standard Lines includes $29 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.

10 

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

THREE MONTHS ENDED	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
JUNE 30													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2008			2007			2008			2007			% Change			2008			2007			% Change			2008			2007			% Change
Net earned premiums	$	1,627		$	1,712		$	149		$	157			(5	)%	$	(2	)	$	3			(167	)%	$	1,774		$	1,872			(5	)%
Net investment income		354			397			157			188			(16	)		65			86			(24	)		576			671			(14	)
Other revenues		69			59			8			6			33			5			—			N/M			82			65			26
Total operating revenues		2,050			2,168			314			351			(11	)		68			89			(24	)		2,432			2,608			(7	)
Claims, benefits and expenses:
Net incurred claims and benefits		1,125			1,112			316			326			3			26			37			30			1,467			1,475			1
Policyholders’ dividends		4			(3	)		1			1			—			—			—			N/M			5			(2	)		N/M
Amortization of deferred acquisition costs		359			368			2			4			50			(1	)		—			N/M			360			372			3
Other insurance related expenses		101			144			51			44			(16	)		(3	)		10			130			149			198			25
Other expenses		53			53			5			8			38			29			36			19			87			97			10
Total claims, benefits and expenses		1,642			1,674			375			383			2			51			83			39			2,068			2,140			3
Operating income (loss) before income tax and minority interest		408			494			(61	)		(32	)		(91	)		17			6			183			364			468			(22	)
Income tax (expense) benefit on operating income (loss)		(128	)		(159	)		31			19			63			(5	)		1			N/M			(102	)		(139	)		27
Minority interest		(11	)		(10	)		—			—			N/M			(1	)		(1	)		—			(12	)		(11	)		(9	)
Net operating income (loss) from continuing operations		269			325			(30	)		(13	)		(131	)		11			6			83			250			318			(21	)
Realized investment losses, net of participating policyholders’ and minority interests		(89	)		(98	)		(6	)		(18	)		67			(16	)		(23	)		30			(111	)		(139	)		20
Income tax benefit on realized investment losses		31			33			2			6			(67	)		7			9			(22	)		40			48			(17	)
Net income (loss) from continuing operations	$	211		$	260		$	(34	)	$	(25	)		(36)	%	$	2		$	(8	)		125	%	$	179		$	227			(21)	%

	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
Other Financial Data													Fav/(Unfav)									Fav/ (Unfav)									Fav/ (Unfav)
Property & Casualty Company Information	2008			2007			2008			2007			% Change			2008			2007			% Change			2008			2007			% Change
Gross written premiums	$	2,225		$	2,371		$	148		$	166			(11	)%	$	3		$	1			200	%	$	2,376		$	2,538			(6	)%
Net written premiums		1,708			1,773			147			150			(2	)		—			1			N/M			1,855			1,924			(4	)
Net earned premiums		1,627			1,712			149			155			(4	)		(2	)		4			(150	)		1,774			1,871			(5	)
FINANCIAL RATIOS
Loss & LAE		69.2	%		64.9	%		N/M	%		N/M	%					N/M	%		N/M	%					80.3	%		75.0	%
Acquisition expense		16.0			18.1			N/M			N/M						N/M			N/M						15.5			17.9
Underwriting expense		12.2			11.8			N/M			N/M						N/M			N/M						13.2			12.4
Expense		28.2			29.9			N/M			N/M						N/M			N/M						28.7			30.3
Dividend		0.3			(0.1	)		N/M			N/M						N/M			N/M						0.2			(0.1	)
Combined ratio		97.7	%		94.7	%		N/M	%		N/M	%					N/M	%		N/M	%					109.2	%		105.2	%

11

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

SIX MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
JUNE 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2008			2007			% Change			2008			2007			% Change			2008			2007			% Change
Gross written premiums	$	1,776		$	1,940			(8	)%	$	2,574		$	2,791			(8	)%	$	4,350		$	4,731			(8	)%
Net written premiums		1,619			1,771			(9	)		1,708			1,733			(1	)		3,327			3,504			(5	)
Net earned premiums		1,551			1,705			(9	)		1,732			1,715			1			3,283			3,420			(4	)
Net investment income		363			455			(20	)		287			311			(8	)		650			766			(15	)
Other revenues		29			23			26			107			89			20			136			112			21
Total operating revenues		1,943			2,183			(11	)		2,126			2,115			1			4,069			4,298			(5	)
Claims, benefits and expenses:
Net incurred claims and benefits		1,143			1,174			3			1,125			1,074			(5	)		2,268			2,248			(1	)
Policyholders’ dividends		7			(1	)		N/M			8			4			(100	)		15			3			N/M
Amortization of deferred acquisition costs		354			385			8			368			359			(3	)		722			744			3
Other insurance related expenses		106			161			34			103			89			(16	)		209			250			16
Other expenses		24			24			—			92			81			(14	)		116			105			(10	)
Total claims, benefits and expenses		1,634			1,743			6			1,696			1,607			(6	)		3,330			3,350			1
Operating income before income tax and minority interest		309			440			(30	)		430			508			(15	)		739			948			(22	)
Income tax expense on operating income		(90	)		(140	)		36			(138	)		(167	)		17			(228	)		(307	)		26
Minority interest		—			—			N/M			(23	)		(20	)		(15	)		(23	)		(20	)		(15	)
Net operating income from continuing operations		219			300			(27	)		269			321			(16	)		488			621			(21	)
Realized investment losses, net of participating policyholders’ and minority interests		(76	)		(87	)		13			(38	)		(49	)		22			(114	)		(136	)		16
Income tax benefit on realized investment losses		26			30			(13	)		14			17			(18	)		40			47			(15	)
Net income from continuing operations	$	169		$	243			(30	)%	$	245		$	289			(15	)%	$	414		$	532			(22	)%
FINANCIAL RATIOS
Loss & LAE		73.7	%		68.8	%					65.0	%		62.6	%					69.1	%		65.7	%
Acquisition expense		15.8			18.5						17.1			16.5						16.5			17.5
Underwriting expense		13.8			13.5						10.0			9.7						11.8			11.6
Expense		29.6			32.0						27.1			26.2						28.3			29.1
Dividend		0.5			—						0.5			0.2						0.5			0.1
Combined ratio		103.8	%		100.8	%					92.6	%		89.0	%					97.9	%		94.9	%
LOSS RATIO IMPACTS
Impact of catastrophe losses
Pretax net accident year catastrophe losses incurred	$	98		$	42					$	2		$	2					$	100		$	44
Impact on loss & LAE ratio		6.3	%		2.5	%					0.1	%		0.1	%					3.1	%		1.3	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & ALAE reserve development (1)	$	(50	)	$	(7	)				$	18		$	(7	)				$	(32	)	$	(14	)
Prior year premium development		1			(10	)					(18	)		(10	)					(17	)		(20	)
Other (2)		15			12						(5	)		—						10			12
Total development & other	$	(34	)	$	(5	)				$	(5	)	$	(17	)				$	(39	)	$	(22	)
Impact of development & other on loss & LAE ratio		(2.2	)%		(0.1)	%					0.1	%		(0.8	)%					(1.0	)%		(0.5	)%

(1)	In 2008, Standard Lines includes $29 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.

12

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

SIX MONTHS ENDED							Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
JUNE 30	P&C Operations												Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2008			2007			2008			2007			% Change			2008			2007			% Change			2008			2007			% Change
Net earned premiums	$	3,283		$	3,420		$	306		$	313			(2	)%	$	(2	)	$	2			(200)	%	$	3,587		$	3,735			(4	)%
Net investment income		650			766			241			349			(31	)		119			164			(27	)		1,010			1,279			(21	)
Other revenues		136			112			21			18			17			11			2			N/M			168			132			27
Total operating revenues		4,069			4,298			568			680			(16	)		128			168			(24	)		4,765			5,146			(7	)
Claims, benefits and expenses:
Net incurred claims and benefits		2,268			2,248			528			599			12			47			71			34			2,843			2,918			3
Policyholders’ dividends		15			3			3			—			N/M			—			—			N/M			18			3			N/M
Amortization of deferred acquisition costs		722			744			6			9			33			—			—			N/M			728			753			3
Other insurance related expenses		209			250			101			95			(6	)		—			13			N/M			310			358			13
Other expenses		116			105			10			17			41			61			67			9			187			189			1
Total claims, benefits and expenses		3,330			3,350			648			720			10			108			151			28			4,086			4,221			3
Operating income (loss) before income tax and minority interest		739			948			(80	)		(40	)		(100	)		20			17			18			679			925			(27	)
Income tax (expense) benefit on operating income (loss)		(228	)		(307	)		47			29			62			(3	)		(1	)		(200	)		(184	)		(279	)		34
Minority interest		(23	)		(20	)		—			—			N/M			(1	)		(1	)		—			(24	)		(21	)		(14	)
Net operating income (loss) from continuing operations		488			621			(33	)		(11	)		(200	)		16			15			7			471			625			(25	)
Realized investment losses, net of participating policyholders’ and minority interests		(114	)		(136	)		(23	)		(17	)		(35	)		(25	)		(7	)		N/M			(162	)		(160	)		(1	)
Income tax benefit on realized investment losses		40			47			8			6			33			10			3			N/M			58			56			4
Net income (loss) from continuing operations	$	414		$	532		$	(48	)	$	(22	)		(118	)%	$	1		$	11			(91	)%	$	367		$	521			(30	)%
Other Financial Data	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
Property & Casualty Company Information													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
		2008			2007			2008			2007		% Change				2008			2007		% Change				2008			2007		% Change
Gross written premiums	$	4,350		$	4,731		$	311		$	349			(11	)%	$	2		$	3			(33	)%	$	4,663		$	5,083			(8)	%
Net written premiums		3,327			3,504			309			312			(1	)		(3	)		(1	)		(200	)		3,633			3,815			(5	)
Net earned premiums		3,283			3,420			305			312			(2	)		(2	)		2			(200	)		3,586			3,734			(4	)
FINANCIAL RATIOS
Loss & LAE		69.1	%		65.7	%		N/M	%		N/M	%					N/M	%		N/M	%					79.0	%		75.1	%
Acquisition expense		16.5			17.5			N/M			N/M						N/M			N/M						16.1			17.3
Underwriting expense		11.8			11.6			N/M			N/M						N/M			N/M						12.8			12.3
Expense		28.3			29.1			N/M			N/M						N/M			N/M						28.9			29.6
Dividend		0.5			0.1			N/M			N/M						N/M			N/M						0.4			0.1
Combined ratio		97.9	%		94.9	%		N/M	%		N/M	%					N/M	%		N/M	%					108.3	%		104.8	%

13

CNA FINANCIAL CORPORATION
Financial Supplement
Analysis of Pretax Net Investment Income

	Standard Lines
(In millions)	1Q07		2Q07		3Q07		4Q07		2007		1Q08			2Q08		YTD2008
Limited partnerships	$	23	$	36	$	12	$	21	$	92	$	(23	)	$	22	$	(1	)
Income (loss) from trading securities		—		—		—		—		—		(1	)		1		—
Other investment income		197		199		197		193		786		188			176		364
Net investment income	$	220	$	235	$	209	$	214	$	878	$	164		$	199	$	363

	Specialty Lines
	1Q07		2Q07		3Q07		4Q07		2007		1Q08			2Q08		YTD2008
Limited partnerships	$	12	$	20	$	7	$	12	$	51	$	(13	)	$	13	$	—
Income (loss) from trading securities		—		—		—		—		—		—			—		—
Other investment income		137		142		145		146		570		145			142		287
Net investment income	$	149	$	162	$	152	$	158	$	621	$	132		$	155	$	287

	P&C Operations
	1Q07		2Q07		3Q07		4Q07		2007		1Q08			2Q08		YTD2008
Limited partnerships	$	35	$	56	$	19	$	33	$	143	$	(36	)	$	35	$	(1	)
Income (loss) from trading securities		—		—		—		—		—		(1	)		1		—
Other investment income		334		341		342		339		1,356		333			318		651
Net investment income	$	369	$	397	$	361	$	372	$	1,499	$	296		$	354	$	650

	Life & Group Non-Core
	1Q07		2Q07		3Q07			4Q07			2007		1Q08			2Q08			YTD2008
Limited partnerships	$	9	$	3	$	(4	)	$	2		$	10	$	4		$	5		$	9
Income (loss) from trading securities		3		40		(2	)		(31	)		10		(76	)		(5	)		(81	)
Other investment income		149		145		151			157			602		156			157			313
Net investment income	$	161	$	188	$	145		$	128		$	622	$	84		$	157		$	241

	Corporate & Other Non-Core
	1Q07		2Q07		3Q07		4Q07		2007		1Q08			2Q08		YTD2008
Limited partnerships	$	8	$	12	$	4	$	6	$	30	$	(7	)	$	6	$	(1	)
Income (loss) from trading securities		—		—		—		—		—		—			—		—
Other investment income		70		74		70		68		282		61			59		120
Net investment income	$	78	$	86	$	74	$	74	$	312	$	54		$	65	$	119

	Total Operations
	1Q07		2Q07		3Q07			4Q07			2007		1Q08			2Q08			YTD2008
Limited partnerships	$	52	$	71	$	19		$	41		$	183	$	(39	)	$	46		$	7
Income (loss) from trading securities		3		40		(2	)		(31	)		10		(77	)		(4	)		(81	)
Other investment income		553		560		563			564			2,240		550			534			1,084
Net investment income	$	608	$	671	$	580		$	574		$	2,433	$	434		$	576		$	1,010

14

CNA FINANCIAL CORPORATION
Financial Supplement
Statutory Data — Preliminary

PERIOD ENDED JUNE 30	Three Months									Six Months
Income Statement	(Preliminary)						Fav / (Unfav)			(Preliminary)						Fav / (Unfav)
(In millions)	2008			2007			% Change			2008			2007			% Change
Property & Casualty Companies
Gross written premiums	$	2,221		$	2,411			(8	)%	$	4,387		$	4,778			(8	)%
Net written premiums		1,710			1,792			(5	)		3,345			3,521			(5	)
Net earned premiums		1,484			1,573			(6	)		2,960			3,119			(5	)
Claim and claim adjustment expenses		1,204			1,192			(1	)		2,400			2,389			—
Acquisition expenses		260			309			16			526			591			11
Underwriting expenses		210			215			2			415			437			5
Policyholders’ dividends		4			5			20			8			12			33
Underwriting loss		(194	)		(148	)		(31	)		(389	)		(310	)		(25	)
Net investment income		460			636			(28	)		953			1,132			(16	)
Other expenses		(55	)		(12	)		N/M			(49	)		(17	)		(188	)
Income tax expense		(56	)		(97	)		42			(117	)		(197	)		41
Net realized losses		(142	)		(185	)		23			(137	)		(202	)		32
Net income	$	13		$	194			(93	)%	$	261		$	406			(36	)%
Financial Ratios
Loss and LAE		81.2	%		75.8	%					81.1	%		76.6	%
Acquisition expense		15.2			17.3						15.7			16.8
Underwriting expense		12.2			12.0						12.4			12.4
Expense		27.4			29.3						28.1			29.2
Dividend		0.3			0.3						0.3			0.4
Combined ratio		108.9	%		105.4	%					109.5	%		106.2	%
Life Company
Earned premium	$	—		$	1					$	1		$	1

SUPPLEMENTAL STATUTORY DATA	(Preliminary)
(In millions)	June 30, 2008		December 31, 2007
Property & Casualty Companies
Statutory surplus(1)	$	7,428	$	8,511
Life Company
Statutory surplus	$	540	$	471

(1) Surplus includes the Property & Casualty Companies’ equity ownership of the life insurance subsidiary. The decline in surplus is primarily attributable to transactions between CCC and its parent of approximately $700 million and the impact of unrealized investment losses.

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

	Standard Lines
	2008 YTD			2007 FY			2007 FY
	Evaluated at			Evaluated at			Evaluated at
	06/30/08			12/31/07			06/30/08
Gross Accident Year		74.2	%		66.6	%		66.2	%
Impact of Reinsurance		1.7			3.5			3.8
Net Accident Year		75.9			70.1			70.0	%
Impact of Development and Other (1)		(2.2	)		(2.7	)
Net Calendar Year		73.7	%		67.4	%

	Specialty Lines
	2008 YTD			2007 FY			2007 FY
	Evaluated at			Evaluated at			Evaluated at
	06/30/08			12/31/07			06/30/08
Gross Accident Year		62.8	%		59.2	%		59.1	%
Impact of Reinsurance		2.1			4.6			4.6
Net Accident Year		64.9			63.8			63.7	%
Impact of Development and Other (1)		0.1			(1.0	)
Net Calendar Year		65.0	%		62.8	%

	P&C Operations
	2008 YTD			2007 FY			2007 FY
	Evaluated at			Evaluated at			Evaluated at
	06/30/08			12/31/07			06/30/08
Gross Accident Year		67.4	%		62.2	%		62.0	%
Impact of Reinsurance		2.7			4.7			4.8
Net Accident Year		70.1			66.9			66.8	%
Impact of Development and Other (1)		(1.0	)		(1.8	)
Net Calendar Year		69.1	%		65.1	%

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

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