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) October 27, 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))

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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 27, 2008, the registrant issued a press release and posted a financial supplement on its website providing information on its results of operations for the third 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 October 27, 2008, providing information on the third quarter 2008 results of operations.
99.2	CNA Financial Corporation financial supplement, posted on its website October 27, 2008, providing supplemental financial information on the third quarter 2008.

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SIGNATURES

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

		CNA Financial Corporation (Registrant)
Date:  October 27, 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
3rd QUARTER 2008 RESULTS AND CAPITAL ACTIONS

CHICAGO, October 27, 2008 — CNA Financial Corporation (NYSE: CNA) today announced third quarter 2008 results and certain capital actions, which included the following items:

• Net operating income of $83 million, or $0.31 per diluted share.

• Net loss of $331 million, or ($1.23) per diluted share.

• Property & Casualty combined ratio of 91.3% before the 15.7 point impact related to catastrophes.

• Book value per common share of $28.75 at September 30, 2008, as compared to $37.36 at December 31, 2007.

• CNA will issue $1.25 billion of non-voting cumulative senior preferred stock which will be purchased by Loews Corporation.

• CNA has suspended its quarterly common stock dividend.

	Results for the Three Months						Results for the Nine Months
	Ended September 30						Ended September 30
($ millions)	2008			2007			2008			2007
Net operating income (a)	$	83		$	212		$	554		$	837
Net realized investment losses		(423	)		(38	)		(527	)		(142	)
Net (loss) income from continuing operations		(340	)		174			27			695
Net income (loss) from discontinued operations		9			—			10			(8	)
Net (loss) income	$	(331	)	$	174		$	37		$	687

(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.

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Diluted Earnings (Loss) Per Share Available to Common Stockholders

	Results for the Three Months						Results for the Nine Months
	Ended September 30						Ended September 30
	2008			2007			2008			2007
Net operating income	$	0.31		$	0.78		$	2.06		$	3.08
Net realized investment losses		(1.57	)		(0.14	)		(1.96	)		(0.52	)
Net (loss) income from continuing operations		(1.26	)		0.64			0.10			2.56
Net income (loss) from discontinued operations		0.03			—			0.04			(0.03	)
Net (loss) income	$	(1.23	)	$	0.64		$	0.14		$	2.53

Net operating income from continuing operations for the three months ended September 30, 2008 decreased $129 million as compared with the same period in 2007. Net operating results for our core Property & Casualty Operations decreased $239 million, while our Non-Core operations increased $110 million. The overall decrease primarily resulted from higher catastrophe impacts and lower net investment income. The catastrophe impacts were $168 million after-tax in the third quarter of 2008, as compared with $7 million after-tax in the third quarter of 2007. The third quarter of 2007 results included an after-tax loss of $108 million in connection with the settlement of an arbitration proceeding related to a run-off book of business in the Life & Group Non-Core segment. Property & Casualty Operations produced combined ratios of 107.0% and 91.6% in the third quarters of 2008 and 2007, or 91.3% and 91.0% before the 15.7 point and 0.6 point impacts related to catastrophes.

Pretax net investment income for the third quarter of 2008 decreased $141 million over the same period of 2007. This decline was primarily driven by decreased results from limited partnerships, short term investments and the trading portfolio.

Net realized investment losses for the three months ended September 30, 2008 increased $385 million after-tax as compared with the same period in 2007. For the three months ended September 30, 2008, other-than-temporary impairment (OTTI) losses of $380 million after-tax, driven by credit issues, were recorded primarily in the non-redeemable preferred equity securities and corporate and other taxable bonds sectors. For the three months ended September 30, 2007, OTTI losses of $122 million after-tax were recorded.

Net realized investment losses, including OTTI losses, for the three months ended September 30, 2008, included $198 million related to securities issued by Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, $65 million related to securities issued by Washington Mutual, $63 million related to securities issued by Icelandic banks and $23 million related to securities issued by American International Group.

Net results for the three months ended September 30, 2008 decreased $505 million as compared with the same period in 2007. This decrease was primarily due to higher net realized investment losses and lower net operating income.

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CNA also announced that it will issue, and Loews Corporation has agreed to purchase, $1.25 billion of non-voting cumulative senior preferred stock (Preferred Issue). The Preferred Issue is perpetual and has a dividend rate of 10% for the first 5 years, with a dividend rate reset thereafter. No dividends may be declared on CNA’s common stock until the Preferred Issue has been paid in full. As such, CNA has suspended its quarterly dividend payment. The terms of the Preferred Issue were approved by a special committee of independent members of CNA’s Board of Directors. To support statutory capital impacted by the continued volatility and uncertainty in the capital markets, CNA will use $1 billion of the proceeds from the Preferred Issue to increase the statutory surplus of its principal insurance subsidiary, Continental Casualty Company.

“We believe by taking this proactive step, we further augment our solid capital base and are well positioned to both meet the challenges and act on the opportunities likely to emerge in the marketplace,” said Stephen W. Lilienthal, Chairman and Chief Executive Officer of CNA Financial Corporation. “I remain very positive about the underlying performance of our core Property & Casualty Operations, as measured by a 91.3% combined ratio before catastrophes. We continue to focus on the fundamentals of disciplined underwriting, portfolio optimization and expense management.”

Net operating income from continuing operations for the nine months ended September 30, 2008 decreased $283 million as compared with the same period in 2007. Net operating income for our core Property & Casualty Operations decreased $372 million, while our Non-Core operations increased $89 million. The overall decrease primarily resulted from the same factors discussed in the three month comparison above. The catastrophe impacts were $233 million after-tax for the nine months ended September 30, 2008, as compared to $35 million after-tax for the same period in 2007. Property & Casualty Operations produced combined ratios of 100.9% and 93.8% for the nine months ended September 30, 2008 and 2007, or 93.6% and 92.7% before the 7.3 point and 1.1 point impacts related to catastrophes.

Pretax net investment income for the nine months ended September 30, 2008 decreased $410 million over the same period in 2007 primarily due to the same factors discussed above for the three month period. Net investment income included a decline in trading portfolio results of $145 million, which was offset by a corresponding decrease in the policyholders’ funds reserves supported by the trading portfolio.

Net realized investment losses for the nine months ended September 30, 2008 increased $385 million after-tax as compared with the same period in 2007. For the nine months ended September 30, 2008, OTTI losses of $546 million after-tax were recorded primarily in the non-redeemable preferred equity securities, corporate and other taxable bonds and asset-backed bonds sectors. For the nine months ended September 30, 2007, OTTI losses of $293 million after-tax were recorded.

Net income for the nine months ended September 30, 2008 decreased $650 million as compared with the same period in 2007, primarily due to the same factors discussed above for the three month period.

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Segment Results for the Three Months Ended September 30, 2008

													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income (loss)	$	(53	)	$	145		$	92		$	(36	)	$	27		$	83
Net realized investment losses		(115	)		(75	)		(190	)		(194	)		(39	)		(423	)
Net (loss) income from continuing operations	$	(168	)	$	70		$	(98	)	$	(230	)	$	(12	)	$	(340	)

Segment Results for the Three Months Ended September 30, 2007

													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income (loss)	$	178		$	153		$	331		$	(131	)	$	12		$	212
Net realized investment losses		(19	)		(9	)		(28	)		(6	)		(4	)		(38	)
Net income (loss) from continuing operations	$	159		$	144		$	303		$	(137	)	$	8		$	174

Segment Results for the Nine Months Ended September 30, 2008

													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income (loss)	$	166		$	414		$	580		$	(69	)	$	43		$	554
Net realized investment losses		(165	)		(99	)		(264	)		(209	)		(54	)		(527	)
Net income (loss) from continuing operations	$	1		$	315		$	316		$	(278	)	$	(11	)	$	27

Segment Results for the Nine Months Ended September 30, 2007

													Corporate
	Standard			Specialty			Total P&C			Life & Group			& Other
($ millions)	Lines			Lines			Ops.			Non-Core			Non-Core			Total
Net operating income (loss)	$	478		$	474		$	952		$	(142	)	$	27		$	837
Net realized investment losses		(76	)		(41	)		(117	)		(17	)		(8	)		(142	)
Net income (loss) from continuing operations	$	402		$	433		$	835		$	(159	)	$	19		$	695

Property & Casualty Operations Gross Written Premiums

	Three Months Ended September 30				Nine Months Ended September 30
($ millions)	2008		2007		2008		2007
Standard Lines	$	804	$	856	$	2,580	$	2,796
Specialty Lines		1,290		1,337		3,864		4,128
Total P&C Operations	$	2,094	$	2,193	$	6,444	$	6,924

Property & Casualty Operations Net Written Premiums

	Three Months Ended September 30				Nine Months Ended September 30
($ millions)	2008		2007		2008		2007
Standard Lines	$	723	$	753	$	2,342	$	2,524
Specialty Lines		875		886		2,583		2,619
Total P&C Operations	$	1,598	$	1,639	$	4,925	$	5,143

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Property & Casualty Calendar Year Loss Ratios

	Three Months Ended September 30						Nine Months Ended September 30
	2008			2007			2008			2007
Standard Lines		96.3	%		60.9	%		81.1	%		66.2	%
Specialty Lines		58.5	%		62.8	%		62.8	%		62.7	%
Total P&C Operations		76.0	%		61.9	%		71.4	%		64.4	%
Total P&C Companies (a)		82.5	%		80.7	%		80.2	%		77.0	%
Property & Casualty Calendar Year Combined Ratios
	Three Months Ended September 30						Nine Months Ended September 30
	2008			2007			2008			2007
Standard Lines		129.3	%		93.6	%		112.2	%		98.4	%
Specialty Lines		87.8	%		89.6	%		91.0	%		89.2	%
Total P&C Operations		107.0	%		91.6	%		100.9	%		93.8	%
Total P&C Companies (a)		114.1	%		110.5	%		110.3	%		106.7	%

(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
	September 30, 2008			December 31, 2007			September 30, 2008
Standard Lines		79.9	%		66.6	%		65.4	%
Specialty Lines		63.7	%		59.2	%		59.0	%
Total P&C Operations		70.1	%		62.2	%		61.6	%

Property & Casualty Net Accident Year Loss Ratios

	Accident year 2008			Accident year 2007			Accident year 2007
	Evaluated at			Evaluated at			Evaluated at
	September 30, 2008			December 31, 2007			September 30, 2008
Standard Lines		82.4	%		70.1	%		69.2	%
Specialty Lines		65.4	%		63.8	%		64.2	%
Total P&C Operations		73.4	%		66.9	%		66.6	%

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Business Operating Highlights

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

• Net written premiums decreased $30 million for the third quarter of 2008 as compared with the same period in 2007. Standard Lines retention increased 7 points to 80% as compared to the same period in 2007. Rates on average decreased 5% during the third quarter of 2008.

• Net operating results decreased $231 million for the third quarter of 2008 as compared with the same period in 2007. This decrease was primarily driven by higher catastrophe impacts, lower net investment income and less favorable net prior year development. The catastrophe impacts were $160 million after-tax in the third quarter of 2008, which included a $7 million after-tax catastrophe-related insurance assessment, as compared to catastrophe losses of $7 million after-tax in the third quarter of 2007.

• Net results decreased $327 million for the third quarter of 2008 as compared with the same period in 2007. This decline was primarily attributable to decreased net operating results and higher net realized investment losses.

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 $11 million for the third quarter of 2008 as compared with the same period in 2007. Specialty Lines retention increased 2 points to 84% as compared to the same period in 2007. Rates on average decreased 3% during the third quarter of 2008.

• Net operating income decreased $8 million for the third quarter of 2008 as compared with the same period in 2007. This decline was primarily driven by lower net investment income, decreased current accident year underwriting results and higher catastrophe losses. These unfavorable results were partially offset by favorable net prior year development. Catastrophe losses were $8 million after-tax in the third quarter of 2008. There were no catastrophe losses in the three months ended September 30, 2007.

• Net income decreased $74 million for the third quarter of 2008 as compared with the same period in 2007. This decrease was primarily attributable to higher net realized investment losses.

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 third quarter of 2008 increased $93 million as compared with the same period in 2007. This increased loss was primarily attributable to net realized investment losses. The net loss in 2007 included an after-tax loss of $108 million related to the settlement of an arbitration proceeding related to a run-off book of business.

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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 third quarter of 2008 decreased $20 million as compared with the same period in 2007. The decline was primarily due to higher net realized investment losses and lower net investment income, partially offset by a release from the allowance for uncollectible reinsurance receivables of $27 million after-tax arising from a change in estimate.

Leadership Succession

CNA also announced today that Thomas F. Motamed will join CNA as Chairman and Chief Executive Officer on January 1, 2009, succeeding Stephen W. Lilienthal, who will retire on that date. Under a previously announced succession plan, Mr. Lilienthal would have retired on June 8, 2009, when Mr. Motamed was able to join CNA under the terms of his non-compete agreement with The Chubb Corporation (Chubb). A subsequent agreement has been reached with Chubb, allowing the transition date to be accelerated. Mr. Lilienthal had agreed to remain at CNA until June 8, but because of the new transition date, he is able to retire when his contract expires at year-end.

“We wish to recognize and thank Steve for his tremendous contributions. Under his leadership, CNA emerged as a stronger, more focused company and built a solid foundation for future success,” said James S. Tisch, a member of the CNA board of directors. “We are also very pleased that Tom will be able to join CNA sooner rather than later, which will help him to hit the ground running and lead CNA forward in 2009.”

About the Company

CNA is the country’s seventh largest commercial insurance writer and the 13^th largest property and casualty company. CNA’s insurance products include standard commercial lines, specialty lines, surety, marine and other property and casualty coverages. CNA services include risk management, information services, underwriting, risk control and claims administration. For more information, please visit CNA at www.cna.com. CNA is a registered service mark, trade name and domain name of CNA Financial Corporation.

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Conference Call and Webcast Information:

A conference call for investors and the professional investment community will be held at 10:00 a.m. 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 (866) 409-1563, or for international callers, (913) 312-0842. 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 November 3, 2008 by dialing (888) 203-1112, or for international callers, (719) 457-0820. The replay passcode is 4272590. The replay will also be available on CNA’s website. Financial supplement information related to the third 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.  

# # #

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EX-99.2

CNA Financial Corporation

Supplemental Financial Information

September 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
September 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 (Nine Months Ended)		12
Life & Group Non-Core and Corporate & Other Non-Core Segments Results of Operations (Nine 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, as amended by Form 10-K/A, 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. Our limited partnership investments cover a broad range of investment strategies including fixed income arbitrage, global arbitrage, long/short equity, relative value, multi-strategy and private equity. The investments across partnerships and investment strategies provide for risk diversification within the limited partnership portfolio and the overall investment portfolio. These strategies consist primarily of underlying marketable securities and may include low levels of leverage and the use of derivatives which may 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 SEPTEMBER 30	Three Months						(Unfav)			Nine Months						(Unfav)
(In millions)	2008			2007			% Change			2008			2007			% Change
STATEMENTS OF OPERATIONS
Revenues:
Net earned premiums	$	1,799		$	1,882			(4	)%	$	5,386		$	5,617			(4	)%
Net investment income		439			580			(24	)		1,449			1,859			(22	)
Realized investment losses, net of participating policyholders’ and minority interests		(651	)		(57	)		N/M			(813	)		(217	)		N/M
Other revenues		72			79			(9	)		240			211			14
Total revenues		1,659			2,484			(33	)		6,262			7,470			(16	)
Claims, benefits and expenses:
Insurance claims and policyholders’ benefits		1,519			1,575			4			4,380			4,496			3
Amortization of deferred acquisition costs		355			384			8			1,083			1,137			5
Other operating expenses		294			244			(20	)		724			722			—
Interest		33			35			6			100			104			4
Total claims, benefits and expenses		2,201			2,238			2			6,287			6,459			3
Income (loss) before income tax and minority interest		(542	)		246			N/M			(25	)		1,011			(102	)
Income tax (expense) benefit		218			(56	)		N/M			92			(279	)		133
Minority interest		(16	)		(16	)		—			(40	)		(37	)		(8	)
Income (loss) from continuing operations		(340	)		174			N/M			27			695			(96	)
Income (loss) from discontinued operations, net of tax		9			—			N/M			10			(8	)		N/M
Net income (loss)	$	(331	)	$	174			N/M	%	$	37		$	687			(95	)%

1

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

							Fav /									Fav /
PERIOD ENDED SEPTEMBER 30	Three Months						(Unfav)			Nine Months						(Unfav)
(In millions, except per share data)	2008			2007			% Change			2008			2007			% Change
COMPONENTS OF NET INCOME
Net operating income	$	83		$	212			(61	)%	$	554		$	837			(34	)%
Net realized investment losses, net of participating policyholders’ and minority interests		(423	)		(38	)		N/M			(527	)		(142	)		N/M
Income (loss) from continuing operations		(340	)		174			N/M			27			695			(96	)
Income (loss) from discontinued operations, net of tax		9			—			N/M			10			(8	)		N/M
Net income (loss)	$	(331	)	$	174			N/M	%	$	37		$	687			(95	)%
BASIC AND DILUTED EARNINGS PER SHARE
Net operating income	$	0.31		$	0.78			(60	)%	$	2.06		$	3.08			(33	)%
Net realized investment losses, net of participating policyholders’ and minority interests		(1.57	)		(0.14	)		N/M			(1.96	)		(0.52	)		N/M
Income (loss) from continuing operations		(1.26	)		0.64			N/M			0.10			2.56			(96	)
Income (loss) from discontinued operations, net of tax		0.03			—			N/M			0.04			(0.03	)		N/M
Basic and diluted earnings (loss) per share available to common stockholders	$	(1.23	)	$	0.64			N/M	%	$	0.14		$	2.53			(94	)%
WEIGHTED AVERAGE OUTSTANDING COMMON STOCK AND COMMON STOCK EQUIVALENTS
Basic		269.0			271.6						269.6			271.5
Diluted		269.1			271.9						269.6			271.8
RETURN ON EQUITY
Net income (loss) (1)		(15.5	)%		6.9	%					0.6	%		9.2	%
Net operating income (loss) (2)		3.3			8.6						7.4			11.7

(1)	Annualized net income (loss) 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)	September 30, 2008			December 31, 2007
Total assets	$	53,708		$	56,759
Insurance reserves		39,468			40,222
Debt		2,007			2,157
Total liabilities		45,568			46,224
Minority interest		404			385
Accumulated other comprehensive income (loss)		(2,163	)		103
Total stockholders’ equity		7,736			10,150
Book value per common share	$	28.75		$	37.36
Book value per common share excluding AOCI	$	36.79		$	36.98
Outstanding shares of common stock (in millions of shares)		269.0			271.7

THREE MONTHS ENDED
SEPTEMBER 30
(In millions)	2008			2007
Net cash flows provided by operating activities (1)	$	449		$	172
Net cash flows used by investing activities		(277	)		(138	)
Net cash flows used by financing activities		(139	)		(29	)
Net cash flows from operating, investing and financing activities	$	33		$	5

NINE MONTHS ENDED
SEPTEMBER 30
(In millions)	2008			2007
Net cash flows provided by operating activities (1)	$	1,261		$	713
Net cash flows used by investing activities		(508	)		(667	)
Net cash flows used by financing activities		(733	)		(83	)
Net cash flows from operating, investing and financing activities	$	20		$	(37	)

(1) Operating cash flows for the three and nine months ended September 30, 2008 include $(9) million and $(7) million related to discontinued operations. Operating cash flows for the three and nine months ended September 30, 2007 include $9 million and $(16) million related to discontinued operations.

3

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

THREE MONTHS ENDED SEPTEMBER 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	$	11,976		$	8,520		$	20,496		$	2,972		$	4,734		$	28,202
Ceded		2,110			1,633			3,743			1,060			1,866			6,669
Net		9,866			6,887			16,753			1,912			2,868			21,533
Net incurred claim & claim adjustment expenses		734			516			1,250			120			36			1,406
Net claim & claim adjustment expense payments		(623	)		(446	)		(1,069	)		(117	)		(123	)		(1,309	)
Foreign currency translation adjustment		—			(72	)		(72	)		(1	)		(2	)		(75	)
Claim & claim adjustment expense reserves, end of period
Net		9,977			6,885			16,862			1,914			2,779			21,555
Ceded		2,180			1,479			3,659			1,016			1,793			6,468
Gross	$	12,157		$	8,364		$	20,521		$	2,930		$	4,572		$	28,023
NINE MONTHS ENDED SEPTEMBER 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		1,877			1,646			3,523			380			94			3,997
Net claim & claim adjustment expense payments		(1,820	)		(1,313	)		(3,133	)		(347	)		(426	)		(3,906	)
Foreign currency translation adjustment		—			(65	)		(65	)		1			(4	)		(68	)
Claim & claim adjustment expense reserves, end of period
Net		9,977			6,885			16,862			1,914			2,779			21,555
Ceded		2,180			1,479			3,659			1,016			1,793			6,468
Gross	$	12,157		$	8,364		$	20,521		$	2,930		$	4,572		$	28,023

4

CNA FINANCIAL CORPORATION
Financial Supplement
Investments by Segment Aggregation

	September 30, 2008					June 30, 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	$	17,877		$	16,081	$	17,976		$	16,936	$	19,351		$	18,951
Fixed maturities — tax exempt		5,772			5,310		5,179			4,990		5,815			5,810
Equities		549			584		753			836		254			459
Short-term investments		4,558			4,563		4,922			4,920		4,385			4,387
Limited partnership investments		1,965			1,965		2,067			2,067		1,877			1,877
Other		5			62		4			8		8			71
Total investments	$	30,726		$	28,565	$	30,901		$	29,757	$	31,690		$	31,555
Net receivable/(payable)	$	47				$	256				$	(265	)
Securities lending collateral		—					—					(53	)
Life & Group Non-Core:
Fixed maturities — taxable	$	6,761		$	6,129	$	6,862		$	6,791	$	7,422		$	7,631
Fixed maturities — tax exempt		2,009			1,656		1,974			1,843		1,800			1,865
Equities		560			377		751			583		112			109
Short-term investments		186			186		144			144		290			290
Limited partnership investments		145			145		254			254		337			337
Other		—			1		1			1		2			2
Total investments	$	9,661		$	8,494	$	9,986		$	9,616	$	9,963		$	10,234
Net receivable/(payable)	$	(23	)			$	(5	)			$	1
Securities lending collateral		—					—					—
Total investments	$	40,387		$	37,059	$	40,887		$	39,373	$	41,653		$	41,789
Total net receivable/(payable)	$	24				$	251				$	(264	)
Total securities lending collateral		—					—					(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 $24 million, $27 million, and $53 million as of September 30, 2008, June 30, 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 September 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	$	7,951		21.4	$	842		2.3	$	8,793		23.7
Other taxable fixed maturities		8,130		21.9		5,287		14.2		13,417		36.1
Tax exempt fixed maturities		5,310		14.3		1,656		4.5		6,966		18.8
All other		7,174		19.5		709		1.9		7,883		21.4
Total investments	$	28,565		77.1	$	8,494		22.9	$	37,059		100.0

Invested Assets Amortized Cost By Segment

	P&C and
	Corporate & Other				Life & Group
	Non-Core		%		Non-Core		%		Total		%
MBS/CMO/ABS/CDO	$	9,022		22.3	$	974		2.4	$	9,996		24.7
Other taxable fixed maturities		8,855		21.9		5,787		14.3		14,642		36.2
Tax exempt fixed maturities		5,772		14.4		2,009		5.0		7,781		19.4
All other		7,077		17.5		891		2.2		7,968		19.7
Total investments	$	30,726		76.1	$	9,661		23.9	$	40,387		100.0

MBS/CMO/ABS/CDO Fair Value Distribution

																					% of Total
	MBS		%		CMO		%		ABS		%		CDO		%		Total		%		Investments
U.S. Government Agencies	$	448		5.1	$	1,061		12.1	$	—		—	$	—		—	$	1,509		17.2		4.1
AAA		—		—		4,379		49.8		1,929		21.9		9		0.1		6,317		71.8		17.0
AA		—		—		42		0.5		294		3.3		25		0.3		361		4.1		1.0
A		—		—		1		—		107		1.2		71		0.8		179		2.0		0.5
BBB		—		—		33		0.4		291		3.3		10		0.1		334		3.8		0.9
<BBB & Equity Tranches		—		—		27		0.3		43		0.5		23		0.3		93		1.1		0.2
Total MBS/CMO/ABS/CDO	$	448		5.1	$	5,543		63.1	$	2,664		30.2	$	138		1.6	$	8,793		100.0		23.7
Sub-prime (Included Above)	$	—			$	—			$	1,371			$	7			$	1,378		15.7		3.7
Alt-A (Included Above)	$	—			$	1,084			$	—			$	4			$	1,088		12.4		2.9

MBS/CMO/ABS/CDO Amortized Cost Distribution

																					% of Total
	MBS		%		CMO		%		ABS		%		CDO		%		Total		%		Investments
U.S. Government Agencies	$	454		4.6	$	1,091		10.9	$	—		—	$	—		—	$	1,545		15.5		3.8
AAA		—		—		4,932		49.3		2,065		20.7		10		0.1		7,007		70.1		17.4
AA		—		—		58		0.6		430		4.3		76		0.7		564		5.6		1.4
A		—		—		10		0.1		173		1.7		197		2.0		380		3.8		0.9
BBB		—		—		40		0.4		298		3.0		40		0.4		378		3.8		0.9
<BBB & Equity Tranches		—		—		32		0.3		52		0.5		38		0.4		122		1.2		0.3
Total MBS/CMO/ABS/CDO	$	454		4.6	$	6,163		61.6	$	3,018		30.2	$	361		3.6	$	9,996		100.0		24.7
Sub-prime (Included Above)	$	—			$	—			$	1,535			$	32			$	1,567		15.7		3.9
Alt-A (Included Above)	$	—			$	1,268			$	—			$	8			$	1,276		12.8		3.2

(1)	In addition to sub-prime exposure in fixed maturity securities, there is exposure of approximately $41 million through limited partnerships and credit default swaps.
MBS	– Mortgage-backed securities
CMO	– Collateralized mortgage obligations
ABS	– Asset-backed securities
CDO	– Collateralized debt obligations

6

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of September 30, 2008
(In millions)

Sub-Prime Fair Value Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2007	$	164		11.9	$	—		—	$	—		—	$	—		—	$	—		—	$	164		11.9
2006		668		48.5		96		7.0		—		—		65		4.7		14		1.0		843		61.2
2005		138		10.0		46		3.3		8		0.6		5		0.3		2		0.2		199		14.4
2004		14		1.0		20		1.4		49		3.5		2		0.2		9		0.7		94		6.8
2003 & prior		8		0.6		19		1.4		29		2.1		6		0.4		16		1.2		78		5.7
Total sub-prime	$	992		72.0	$	181		13.1	$	86		6.2	$	78		5.6	$	41		3.1	$	1,378		100.0

Sub-Prime Amortized Cost Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2007	$	166		10.6	$	—		—	$	—		—	$	—		—	$	—		—	$	166		10.6
2006		698		44.5		126		8.0		—		—		64		4.1		17		1.1		905		57.7
2005		143		9.1		70		4.5		32		2.0		5		0.3		2		0.1		252		16.0
2004		15		1.0		24		1.6		87		5.6		3		0.2		11		0.7		140		9.1
2003 & prior		8		0.5		31		2.0		38		2.4		8		0.5		19		1.2		104		6.6
Total sub-prime	$	1,030		65.7	$	251		16.1	$	157		10.0	$	80		5.1	$	49		3.1	$	1,567		100.0

Alt-A Fair Value Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2007	$	192		17.7	$	16		1.5	$	—		—	$	—		—	$	11		1.0	$	219		20.2
2006		131		12.0		1		0.1		—		—		—		—		17		1.5		149		13.6
2005		149		13.7		1		0.1		—		—		—		—		—		—		150		13.8
2004		445		40.9		1		0.1		—		—		—		—		—		—		446		41.0
2003 & prior		124		11.4		—		—		—		—		—		—		—		—		124		11.4
Total Alt-A	$	1,041		95.7	$	19		1.8	$	—		—	$	—		—	$	28		2.5	$	1,088		100.0

Alt-A Amortized Cost Quality Distribution by Vintage Year

																	<BBB &
																	Equity
	AAA		%		AA		%		A		%		BBB		%		Tranches		%		Total		%
2007	$	229		17.9	$	17		1.3	$	—		—	$	—		—	$	12		0.9	$	258		20.1
2006		142		11.1		1		0.1		—		—		—		—		22		1.7		165		12.9
2005		182		14.3		1		0.1		—		—		—		—		—		—		183		14.4
2004		523		41.0		1		0.1		—		—		—		—		—		—		524		41.1
2003 & prior		146		11.5		—		—		—		—		—		—		—		—		146		11.5
Total Alt-A	$	1,222		95.8	$	20		1.6	$	—		—	$	—		—	$	34		2.6	$	1,276		100.0

7

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of September 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	$	23	$	23	$	382	$	386	$	23	$	24	$	20	$	21	$	448	$	454
AAA		—		—		—		—		—		—		—		—		—		—
AA		—		—		—		—		—		—		—		—		—		—
A		—		—		—		—		—		—		—		—		—		—
BBB		—		—		—		—		—		—		—		—		—		—
<BBB & Equity Tranches		—		—		—		—		—		—		—		—		—		—
Total MBS	$	23	$	23	$	382	$	386	$	23	$	24	$	20	$	21	$	448	$	454
Included in Total MBS:
Sub-prime	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Alt-A		—		—		—		—		—		—		—		—		—		—
Prime		23		23		382		386		23		24		20		21		448		454
Total MBS	$	23	$	23	$	382	$	386	$	23	$	24	$	20	$	21	$	448	$	454

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	$	119	$	120	$	365	$	368	$	—	$	—	$	577	$	603	$	1,061	$	1,091
AAA		306		331		2,647		2,991		1,013		1,179		413		431		4,379		4,932
AA		—		—		24		37		18		21		—		—		42		58
A		—		—		—		—		1		10		—		—		1		10
BBB		6		9		—		—		27		31		—		—		33		40
<BBB & Equity Tranches		—		—		14		16		13		16		—		—		27		32
Total CMO	$	431	$	460	$	3,050	$	3,412	$	1,072	$	1,257	$	990	$	1,034	$	5,543	$	6,163
Included in Total CMO:
Sub-prime	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Alt-A		68		75		826		983		190		210		—		—		1,084		1,268
Prime		363		385		2,224		2,429		882		1,047		990		1,034		4,459		4,895
Total CMO	$	431	$	460	$	3,050	$	3,412	$	1,072	$	1,257	$	990	$	1,034	$	5,543	$	6,163

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

8

CNA FINANCIAL CORPORATION
Financial Supplement
Mortgage and Asset-Backed Holdings
As of September 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	$	648	$	719	$	671	$	695	$	31	$	32	$	321	$	334	$	120	$	148	$	138	$	137	$	1,929	$	2,065
AA		108		172		60		88		5		6		120		163		—		—		1		1		294		430
A		27		47		61		104		1		1		18		21		—		—		—		—		107		173
BBB		13		19		6		8		200		199		72		72		—		—		—		—		291		298
<BBB & Equity Tranches		1		2		33		39		—		—		9		11		—		—		—		—		43		52
Total ABS	$	797	$	959	$	831	$	934	$	237	$	238	$	540	$	601	$	120	$	148	$	139	$	138	$	2,664	$	3,018
Included in Total ABS:
Sub-prime	$	—	$	—	$	831	$	934	$	—	$	—	$	540	$	601	$	—	$	—	$	—	$	—	$	1,371	$	1,535
Alt-A		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Prime & Non-Residential Mortgages		797		959		—		—		237		238		—		—		120		148		139		138		1,293		1,483
Total ABS	$	797	$	959	$	831	$	934	$	237	$	238	$	540	$	601	$	120	$	148	$	139	$	138	$	2,664	$	3,018

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		24		75		—		—		—		—		1		1		25		76
A		53		144		—		—		18		53		—		—		71		197
BBB		10		40		—		—		—		—		—		—		10		40
<BBB & Equity Tranches		6		8		4		8		1		1		12		21		23		38
Total CDO	$	93	$	267	$	4	$	8	$	28	$	64	$	13	$	22	$	138	$	361
Included in Total CDO:
Sub-prime	$	—	$	—	$	—	$	—	$	7	$	32	$	—	$	—	$	7	$	32
Alt-A		—		—		4		8		—		—		—		—		4		8
Prime & Non-Residential Mortgages		93		267		—		—		21		32		13		22		127		321
Total CDO	$	93	$	267	$	4	$	8	$	28	$	64	$	13	$	22	$	138	$	361

ABS	— Asset-backed securities
CMBS	— Commercial mortgage-backed securities
RMBS	— Residential mortgage-backed securities
CDO	— Collateralized debt obligations
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
SEPTEMBER 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2008			2007			% Change			2008			2007			% Change			2008			2007			% Change
Gross written premiums	$	804		$	856			(6)	%	$	1,290		$	1,337			(4)	%	$	2,094		$	2,193			(5)	%
Net written premiums		723			753			(4	)		875			886			(1	)		1,598			1,639			(3	)
Net earned premiums		762			841			(9	)		882			885			—			1,644			1,726			(5	)
Net investment income		136			209			(35	)		121			152			(20	)		257			361			(29	)
Other revenues		13			9			44			59			50			18			72			59			22
Total operating revenues		911			1,059			(14	)		1,062			1,087			(2	)		1,973			2,146			(8	)
Claims, benefits and expenses:
Net incurred claims and benefits		734			511			(44	)		516			556			7			1,250			1,067			(17	)
Policyholders’ dividends		(10	)		4			N/M			2			1			(100	)		(8	)		5			N/M
Amortization of deferred acquisition costs		174			190			8			177			190			7			351			380			8
Other insurance related expenses		87			82			(6	)		79			45			(76	)		166			127			(31	)
Other expenses		20			12			(67	)		52			44			(18	)		72			56			(29	)
Total claims, benefits and expenses		1,005			799			(26	)		826			836			1			1,831			1,635			(12	)
Operating income (loss) before income tax and minority interest		(94	)		260			(136	)		236			251			(6	)		142			511			(72	)
Income tax (expense) benefit on operating income (loss)		41			(82	)		150			(74	)		(82	)		10			(33	)		(164	)		80
Minority interest		—			—			N/M			(17	)		(16	)		(6	)		(17	)		(16	)		(6	)
Net operating income (loss) from continuing operations		(53	)		178			(130	)		145			153			(5	)		92			331			(72	)
Realized investment losses, net of participating policyholders’ and minority interests		(178	)		(29	)		N/M			(116	)		(13	)		N/M			(294	)		(42	)		N/M
Income tax benefit on realized investment losses		63			10			N/M			41			4			N/M			104			14			N/M
Net income (loss) from continuing operations	$	(168	)	$	159			N/M	%	$	70		$	144			(51)	%	$	(98	)	$	303			(132)	%
FINANCIAL RATIOS
Loss & LAE		96.3	%		60.9	%					58.5	%		62.8	%					76.0	%		61.9	%
Acquisition expense		20.3			18.6						18.7			17.0						19.4			17.8
Underwriting expense		14.1			13.7						10.3			9.6						12.1			11.6
Expense		34.4			32.3						29.0			26.6						31.5			29.4
Dividend		(1.4	)		0.4						0.3			0.2						(0.5	)		0.3
Combined ratio		129.3	%		93.6	%					87.8	%		89.6	%					107.0	%		91.6	%
RATIO IMPACTS
Impact of catastrophes
Pretax net accident year catastrophe losses incurred	$	236		$	10					$	12		$	—					$	248		$	10
Impact on loss & LAE ratio		31.0	%		1.2	%					1.3	%		—	%					15.1	%		0.6	%
Pretax assessments related to catastrophes	$	10		$	—					$	—		$	—					$	10		$	—
Impact on expense ratio		1.4	%		—	%					—	%		—	%					0.6	%		—	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & ALAE reserve development	$	(4	)	$	(67	)				$	(68	)	$	3					$	(72	)	$	(64	)
Prior year premium development		3			(5	)					(2	)		(3	)					1			(8	)
Other (1)		7			8						—			—						7			8
Total development & other	$	6		$	(64	)				$	(70	)	$	—					$	(64	)	$	(64	)
Impact of development & other on loss & LAE ratio		0.9	%		(7.5)	%					(7.9)	%		0.2	%					(3.9)	%		(3.5)	%

(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	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
SEPTEMBER 30													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2008			2007			2008			2007			% Change			2008			2007			% Change			2008			2007			% Change
Net earned premiums	$	1,644		$	1,726		$	154		$	156			(1)	%	$	1		$	—			N/M	%	$	1,799		$	1,882			(4)	%
Net investment income		257			361			135			145			(7	)		47			74			(36	)		439			580			(24	)
Other revenues		72			59			(1	)		16			(106	)		1			4			(75	)		72			79			(9	)
Total operating revenues		1,973			2,146			288			317			(9	)		49			78			(37	)		2,310			2,541			(9	)
Claims, benefits and expenses:
Net incurred claims and benefits		1,250			1,067			294			463			37			(19	)		40			148			1,525			1,570			3
Policyholders’ dividends		(8	)		5			2			—			N/M			—			—			N/M			(6	)		5			N/M
Amortization of deferred acquisition costs		351			380			4			4			—			—			—			N/M			355			384			8
Other insurance related expenses		166			127			51			48			(6	)		5			—			N/M			222			175			(27	)
Other expenses		72			56			7			17			59			26			31			16			105			104			(1	)
Total claims, benefits and expenses		1,831			1,635			358			532			33			12			71			83			2,201			2,238			2
Operating income (loss) before income tax and minority interest		142			511			(70	)		(215	)		67			37			7			N/M			109			303			(64	)
Income tax (expense) benefit on operating income (loss)		(33	)		(164	)		34			84			(60	)		(11	)		5			N/M			(10	)		(75	)		87
Minority interest		(17	)		(16	)		—			—			N/M			1			—			N/M			(16	)		(16	)		—
Net operating income (loss) from continuing operations		92			331			(36	)		(131	)		73			27			12			125			83			212			(61	)
Realized investment losses, net of participating policyholders’ and minority interests		(294	)		(42	)		(298	)		(9	)		N/M			(59	)		(6	)		N/M			(651	)		(57	)		N/M
Income tax benefit on realized investment losses		104			14			104			3			N/M			20			2			N/M			228			19			N/M
Net income (loss) from continuing operations	$	(98	)	$	303		$	(230	)	$	(137	)		(68)	%	$	(12	)	$	8			N/M	%	$	(340	)	$	174			N/M	%

	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	$	2,094		$	2,193		$	164		$	163			1	%	$	125		$	3			N/M	%	$	2,383		$	2,359			1	%
Net written premiums		1,598			1,639			149			149			—			1			3			(67	)		1,748			1,791			(2	)
Net earned premiums		1,644			1,726			154			155			—			1			—			N/M			1,799			1,881			(4	)
FINANCIAL RATIOS
Loss & LAE		76.0	%		61.9	%		N/M	%		N/M	%					N/M	%		N/M	%					82.5	%		80.7	%
Acquisition expense		19.4			17.8			N/M			N/M						N/M			N/M						18.8			17.2
Underwriting expense		12.1			11.6			N/M			N/M						N/M			N/M						13.3			12.3
Expense		31.5			29.4			N/M			N/M						N/M			N/M						32.1			29.5
Dividend		(0.5	)		0.3			N/M			N/M						N/M			N/M						(0.5	)		0.3
Combined ratio		107.0	%		91.6	%		N/M	%		N/M	%					N/M	%		N/M	%					114.1	%		110.5	%

11

CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Results of Operations

NINE MONTHS ENDED	Standard Lines									Specialty Lines									P&C Operations
SEPTEMBER 30							Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2008			2007			% Change			2008			2007			% Change			2008			2007			% Change
Gross written premiums	$	2,580		$	2,796			(8)	%	$	3,864		$	4,128			(6)	%	$	6,444		$	6,924			(7)	%
Net written premiums		2,342			2,524			(7	)		2,583			2,619			(1	)		4,925			5,143			(4	)
Net earned premiums		2,313			2,546			(9	)		2,614			2,600			1			4,927			5,146			(4	)
Net investment income		499			664			(25	)		408			463			(12	)		907			1,127			(20	)
Other revenues		42			32			31			166			139			19			208			171			22
Total operating revenues		2,854			3,242			(12	)		3,188			3,202			—			6,042			6,444			(6	)
Claims, benefits and expenses:
Net incurred claims and benefits		1,877			1,685			(11	)		1,641			1,630			(1	)		3,518			3,315			(6	)
Policyholders’ dividends		(3	)		3			200			10			5			(100	)		7			8			13
Amortization of deferred acquisition costs		528			575			8			545			549			1			1,073			1,124			5
Other insurance related expenses		193			243			21			182			134			(36	)		375			377			1
Other expenses		44			36			(22	)		144			125			(15	)		188			161			(17	)
Total claims, benefits and expenses		2,639			2,542			(4	)		2,522			2,443			(3	)		5,161			4,985			(4	)
Operating income before income tax and minority interest		215			700			(69	)		666			759			(12	)		881			1,459			(40	)
Income tax expense on operating income		(49	)		(222	)		78			(212	)		(249	)		15			(261	)		(471	)		45
Minority interest		—			—			N/M			(40	)		(36	)		(11	)		(40	)		(36	)		(11	)
Net operating income from continuing operations		166			478			(65	)		414			474			(13	)		580			952			(39	)
Realized investment losses, net of participating policyholders’ and minority interests		(254	)		(116	)		(119	)		(154	)		(62	)		(148	)		(408	)		(178	)		(129	)
Income tax benefit on realized investment losses		89			40			123			55			21			162			144			61			136
Net income from continuing operations	$	1		$	402			(100)	%	$	315		$	433			(27)	%	$	316		$	835			(62)	%
FINANCIAL RATIOS
Loss & LAE		81.1	%		66.2	%					62.8	%		62.7	%					71.4	%		64.4	%
Acquisition expense		17.2			18.6						17.7			16.6						17.5			17.6
Underwriting expense		14.1			13.5						10.1			9.7						11.9			11.6
Expense		31.3			32.1						27.8			26.3						29.4			29.2
Dividend		(0.2	)		0.1						0.4			0.2						0.1			0.2
Combined ratio		112.2	%		98.4	%					91.0	%		89.2	%					100.9	%		93.8	%
RATIO IMPACTS
Impact of catastrophes
Pretax net accident year catastrophe losses incurred	$	334		$	52					$	14		$	2					$	348		$	54
Impact on loss & LAE ratio		14.5	%		2.0	%					0.5	%		0.1	%					7.1	%		1.1	%
Pretax assessments related to catastrophes	$	10		$	—					$	—		$	—					$	10		$	—
Impact on expense ratio		0.4	%		—	%					—	%		—	%					0.2	%		—	%
Impact of development & other
Pretax net development: (favorable) / unfavorable
Prior year loss & ALAE reserve development (1)	$	(54	)	$	(74	)				$	(50	)	$	(4	)				$	(104	)	$	(78	)
Prior year premium development		4			(15	)					(20	)		(13	)					(16	)		(28	)
Other (2)		22			20						(5	)		—						17			20
Total development & other	$	(28	)	$	(69	)				$	(75	)	$	(17	)				$	(103	)	$	(86	)
Impact of development & other on loss & LAE ratio		(1.3)	%		(2.6)	%					(2.6)	%		(0.4)	%					(2.0)	%		(1.5)	%

(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

NINE MONTHS ENDED	P&C Operations						Life & Group Non-Core									Corporate & Other Non-Core									Total Operations
SEPTEMBER 30													Fav / (Unfav)									Fav / (Unfav)									Fav / (Unfav)
(In millions)	2008			2007			2008			2007			% Change			2008			2007			% Change			2008			2007			% Change
Net earned premiums	$	4,927		$	5,146		$	460		$	469			(2	)%	$	(1	)	$	2			(150	)%	$	5,386		$	5,617			(4	)%
Net investment income		907			1,127			376			494			(24	)		166			238			(30	)		1,449			1,859			(22	)
Other revenues		208			171			20			34			(41	)		12			6			100			240			211			14
Total operating revenues		6,042			6,444			856			997			(14	)		177			246			(28	)		7,075			7,687			(8	)
Claims, benefits and expenses:
Net incurred claims and benefits		3,518			3,315			822			1,062			23			28			111			75			4,368			4,488			3
Policyholders’ dividends		7			8			5			—			N/M			—			—			N/M			12			8			(50	)
Amortization of deferred acquisition costs		1,073			1,124			10			13			23			—			—			N/M			1,083			1,137			5
Other insurance related expenses		375			377			152			143			(6	)		5			13			62			532			533			—
Other expenses		188			161			17			34			50			87			98			11			292			293			—
Total claims, benefits and expenses		5,161			4,985			1,006			1,252			20			120			222			46			6,287			6,459			3
Operating income (loss) before income tax and minority interest		881			1,459			(150	)		(255	)		41			57			24			138			788			1,228			(36	)
Income tax (expense) benefit on operating income (loss)		(261	)		(471	)		81			113			(28	)		(14	)		4			N/M			(194	)		(354	)		45
Minority interest		(40	)		(36	)		—			—			N/M			—			(1	)		N/M			(40	)		(37	)		(8	)
Net operating income (loss) from continuing operations		580			952			(69	)		(142	)		51			43			27			59			554			837			(34	)
Realized investment losses, net of participating policyholders’ and minority interests		(408	)		(178	)		(321	)		(26	)		N/M			(84	)		(13	)		N/M			(813	)		(217	)		N/M
Income tax benefit on realized investment losses		144			61			112			9			N/M			30			5			N/M			286			75			N/M
Net income (loss) from continuing operations	$	316		$	835		$	(278	)	$	(159	)		(75	)%	$	(11	)	$	19			(158	)%	$	27		$	695			(96	)%
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	$	6,444		$	6,924		$	475		$	512			(7	)%	$	127		$	6			N/M	%	$	7,046		$	7,442			(5	)%
Net written premiums		4,925			5,143			458			461			(1	)		(2	)		2			(200	)		5,381			5,606			(4	)
Net earned premiums		4,927			5,146			460			467			(1	)		(1	)		2			(150	)		5,386			5,615			(4	)
FINANCIAL RATIOS
Loss & LAE		71.4	%		64.4	%		N/M	%		N/M	%					N/M	%		N/M	%					80.2	%		77.0	%
Acquisition expense		17.5			17.6			N/M			N/M						N/M			N/M						17.0			17.3
Underwriting expense		11.9			11.6			N/M			N/M						N/M			N/M						13.0			12.2
Expense		29.4			29.2			N/M			N/M						N/M			N/M						30.0			29.5
Dividend		0.1			0.2			N/M			N/M						N/M			N/M						0.1			0.2
Combined ratio		100.9	%		93.8	%		N/M	%		N/M	%					N/M	%		N/M	%					110.3	%		106.7	%

13

CNA FINANCIAL CORPORATION
Financial Supplement
Analysis of Pretax Net Investment Income

	Standard Lines
(In millions)	1Q07		2Q07		3Q07			4Q07			2007		1Q08			2Q08			3Q08			YTD2008
Limited partnerships	$	23	$	36	$	12		$	21		$	92	$	(23	)	$	22		$	(39	)	$	(40	)
Income (loss) from trading securities		—		—		—			—			—		(1	)		1			(1	)		(1	)
Other investment income		197		199		197			193			786		188			176			176			540
Net investment income	$	220	$	235	$	209		$	214		$	878	$	164		$	199		$	136		$	499
	Specialty Lines
	1Q07		2Q07		3Q07			4Q07			2007		1Q08			2Q08			3Q08			YTD2008
Limited partnerships	$	12	$	20	$	7		$	12		$	51	$	(13	)	$	13		$	(24	)	$	(24	)
Income (loss) from trading securities		—		—		—			—			—		—			—			—			—
Other investment income		137		142		145			146			570		145			142			145			432
Net investment income	$	149	$	162	$	152		$	158		$	621	$	132		$	155		$	121		$	408
	P&C Operations
	1Q07		2Q07		3Q07			4Q07			2007		1Q08			2Q08			3Q08			YTD2008
Limited partnerships	$	35	$	56	$	19		$	33		$	143	$	(36	)	$	35		$	(63	)	$	(64	)
Income (loss) from trading securities		—		—		—			—			—		(1	)		1			(1	)		(1	)
Other investment income		334		341		342			339			1,356		333			318			321			972
Net investment income	$	369	$	397	$	361		$	372		$	1,499	$	296		$	354		$	257		$	907
	Life & Group Non-Core
	1Q07		2Q07		3Q07			4Q07			2007		1Q08			2Q08			3Q08			YTD2008
Limited partnerships	$	9	$	3	$	(4	)	$	2		$	10	$	4		$	5		$	(2	)	$	7
Income (loss) from trading securities		3		40		(2	)		(31	)		10		(76	)		(5	)		(22	)		(103	)
Other investment income		149		145		151			157			602		156			157			159			472
Net investment income	$	161	$	188	$	145		$	128		$	622	$	84		$	157		$	135		$	376
	Corporate & Other Non-Core
	1Q07		2Q07		3Q07			4Q07			2007		1Q08			2Q08			3Q08			YTD2008
Limited partnerships	$	8	$	12	$	4		$	6		$	30	$	(7	)	$	6		$	(12	)	$	(13	)
Income (loss) from trading securities		—		—		—			—			—		—			—			—			—
Other investment income		70		74		70			68			282		61			59			59			179
Net investment income	$	78	$	86	$	74		$	74		$	312	$	54		$	65		$	47		$	166
	Total Operations
	1Q07		2Q07		3Q07			4Q07			2007		1Q08			2Q08			3Q08			YTD2008
Limited partnerships	$	52	$	71	$	19		$	41		$	183	$	(39	)	$	46		$	(77	)	$	(70	)
Income (loss) from trading securities		3		40		(2	)		(31	)		10		(77	)		(4	)		(23	)		(104	)
Other investment income		553		560		563			564			2,240		550			534			539			1,623
Net investment income	$	608	$	671	$	580		$	574		$	2,433	$	434		$	576		$	439		$	1,449

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CNA FINANCIAL CORPORATION
Financial Supplement
Statutory Data – Preliminary

PERIOD ENDED SEPTEMBER 30	Three Months									Nine Months
Income Statement	(Preliminary)						Fav/(Unfav)			(Preliminary)						Fav/(Unfav)
(In millions)	2008			2007			% Change			2008			2007			% Change
Property & Casualty Companies
Gross written premiums	$	2,126		$	2,414			(12	)%	$	6,511		$	7,438			(12	)%
Net written premiums		1,603			1,658			(3	)		4,945			5,179			(5	)
Net earned premiums		1,481			1,565			(5	)		4,435			4,684			(5	)
Claim and claim adjustment expenses		1,313			1,309			—			3,713			3,698			—
Acquisition expenses		291			284			(2	)		817			875			7
Underwriting expenses		198			239			17			618			676			9
Policyholders’ dividends		4			3			(33	)		12			15			20
Underwriting loss		(325	)		(270	)		(20	)		(725	)		(580	)		(25	)
Net investment Income		452			504			(10	)		1,405			1,636			(14	)
Other expenses		17			(12	)		N/M			(28	)		(30	)		7
Income tax expense		82			(7	)		N/M			(29	)		(204	)		86
Net realized losses		(485	)		(51	)		N/M			(623	)		(252	)		(147	)
Net income (loss)	$	(259	)	$	164			N/M	%	$	—		$	570			N/M	%
Financial Ratios
Loss and LAE		88.7	%		83.6	%					83.7	%		78.9	%
Acquisition expense		18.2			17.1						16.5			16.9
Underwriting expense		12.3			14.4						12.5			14.5
Expense		30.5			31.5						29.0			31.4
Dividend		0.2			0.2						0.3			0.3
Combined ratio		119.4	%		115.3	%					113.0	%		110.6	%
Life Company
Earned premium	$	—		$	1					$	1		$	2

SUPPLEMENTAL STATUTORY DATA
	(Preliminary)
(In millions)	September 30, 2008		December 31, 2007
Property & Casualty Companies
Statutory surplus (1) (2)	$	7,967	$	8,511
Life Company
Statutory surplus	$	514	$	471

(1)	Surplus includes the Property & Casualty Companies’ equity ownership of the life insurance subsidiary.
(2)	In conformity with accounting practices prescribed by insurance regulatory authorities, preliminary statutory capital and surplus as of September 30, 2008, presented above, reflects the impact of a $1 billion surplus note, which will be issued to CNA Financial Corporation subsequent to September 30, 2008 but prior to the filing of Continental Casualty Company’s third quarter statutory statements.

15

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
	09/30/08			12/31/07			09/30/08
Gross Accident Year		79.9	%		66.6	%		65.4	%
Impact of Reinsurance		2.5			3.5			3.8
Net Accident Year		82.4			70.1			69.2	%
Impact of Development and Other (1)		(1.3	)		(2.7	)
Net Calendar Year		81.1	%		67.4	%

	Specialty Lines
	2008 YTD			2007 FY			2007 FY
	Evaluated at			Evaluated at			Evaluated at
	09/30/08			12/31/07			09/30/08
Gross Accident Year		63.7	%		59.2	%		59.0	%
Impact of Reinsurance		1.7			4.6			5.2
Net Accident Year		65.4			63.8			64.2	%
Impact of Development and Other (1)		(2.6	)		(1.0	)
Net Calendar Year		62.8	%		62.8	%

	P&C Operations
	2008 YTD			2007 FY			2007 FY
	Evaluated at			Evaluated at			Evaluated at
	09/30/08			12/31/07			09/30/08
Gross Accident Year		70.1	%		62.2	%		61.6	%
Impact of Reinsurance		3.3			4.7			5.0
Net Accident Year		73.4			66.9			66.6	%
Impact of Development and Other (1)		(2.0	)		(1.8	)
Net Calendar Year		71.4	%		65.1	%

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

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