cna-20230206
0000021175falseCommon Stock, Par value $2.50"CNA"00000211752023-02-062023-02-060000021175exch:XNYS2023-02-062023-02-060000021175exch:XCHI2023-02-062023-02-06

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

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

Date of Report (Date of earliest event reported) February 6, 2023

CNA FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)

Delaware1-582336-6169860
(State or other jurisdiction(Commission(IRS Employer
of incorporation)File Number)Identification No.)

151 N. Franklin
Chicago, IL 60606
(Address of principal executive offices) (Zip Code)
(312) 822-5000
(Registrant's telephone number, including area code)

NOT APPLICABLE
(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):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, Par value $2.50"CNA"New York Stock Exchange
Chicago Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On February 6, 2023, the registrant issued a press release and posted on its website (www.cna.com) a financial supplement providing information on its results of operations for the fourth quarter and year ended December 31, 2022. 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 is 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:
See Exhibit Index.




EXHIBIT INDEX

Exhibit No.Description
CNA Financial Corporation press release, issued February 6, 2023, providing information on the fourth quarter and year ended December 31, 2022 results of operations.
CNA Financial Corporation financial supplement, posted on its website February 6, 2023, providing supplemental financial information on the fourth quarter and year ended December 31, 2022.
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES

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

CNA Financial Corporation
(Registrant)
Date:  February 6, 2023By/s/ Scott R. Lindquist
(Signature)
Scott R. Lindquist
Executive Vice President and
Chief Financial Officer




FOR IMMEDIATE RELEASE
CNA FINANCIAL ANNOUNCES
Q4 2022 NET INCOME OF $0.91 PER SHARE AND CORE INCOME OF $1.01 PER SHARE
FULL YEAR 2022 NET INCOME OF $3.28 PER SHARE AND CORE INCOME OF $3.84 PER SHARE
REGULAR QUARTERLY DIVIDEND INCREASED 5% TO $0.42 PER SHARE
SPECIAL DIVIDEND OF $1.20 PER SHARE
Fourth Quarter
•Net income of $248 million versus $266 million in the prior year quarter; core income of $274 million versus $265 million in the prior year quarter
•P&C core income of $342 million versus $353 million, reflects lower investment income from limited partnerships and common stock, as well as lower underwriting income from a $36 million increase in pretax catastrophe losses to $76 million.
•Life & Group core loss of $(16) million versus core income of $6 million in the prior year quarter reflects lower investment income from limited partnerships.
•Corporate & Other core loss of $(52) million versus $(94) million in the prior year quarter, includes a non-economic charge related to asbestos and environmental pollution of $28 million after-tax versus $48 million in the prior year quarter.
•P&C combined ratio of 93.7%, compared with 92.9% in the prior year quarter, including 3.6 points of catastrophe loss impact compared with 2.0 points in the prior year quarter. The underlying combined ratio was 91.2%, consistent with the prior year quarter. The underlying loss ratio was 59.9% compared with 60.1% in the prior year quarter.
•P&C segments, excluding third party captives, generated gross written premium growth of 8%, or 9% excluding foreign currency fluctuations. Net written premium growth of 5% in the quarter, or 7% excluding foreign currency fluctuations. P&C renewal premium change of +7%, with written rate of +4% and exposure change of +3%.
Full Year
•Net income of $894 million versus $1,202 million in the prior year; core income of $1,048 million versus $1,106 million in the prior year
•P&C core income of $1,240 million versus $1,184 million, reflects record high underwriting income of $559 million as well as higher investment income from fixed income securities, partially offset by lower investment income from limited partnerships and common stock.
•Life & Group core loss of $(9) million versus core income of $126 million in the prior year reflects lower investment income from limited partnerships.
•P&C record low combined ratio of 93.2%, compared with 96.2% in the prior year, including 3.0 points of catastrophe loss impact compared with 5.1 points in the prior year. The underlying combined ratio was a record low 91.2% compared with 91.4% in the prior year. The underlying loss ratio was 60.0%, consistent with the prior year.
•P&C segments, excluding third party captives, generated gross written premium growth of 10%, or 11% excluding foreign currency fluctuations. Net written premium growth of 9% in the year, or 10% excluding foreign currency fluctuations. P&C renewal premium change of +8%, with written rate of +5% and exposure change of 3%.
Shareholders' Equity
•Book value per share of $32.58; book value per share excluding AOCI of $45.71, a 7% increase from year-end 2021 adjusting for $3.60 of dividends per share.
•Increased quarterly dividend 5% to $0.42 per share; special dividend of $1.20 per share.
1

CHICAGO, February 6, 2023 --- CNA Financial Corporation (NYSE: CNA) today announced fourth quarter 2022 net income of $248 million, or $0.91 per share, versus $266 million, or $0.98 per share, in the prior year quarter. Net investment losses for the quarter were $26 million compared to net investment gains of $1 million in the prior year quarter. Core income for the quarter was $274 million, or $1.01 per share, versus $265 million, or $0.97 per share, in the prior year quarter.
Net income for the full year 2022 was $894 million, or $3.28 per share, versus $1,202 million, or $4.41 per share, in the prior year. Net investment losses for the full year were $154 million compared to net investment gains of $96 million in the prior year. Core income for the full year 2022 was $1,048 million, or $3.84 per share, versus $1,106 million, or $4.06 per share, in the prior year.
Our Property & Casualty segments produced core income of $342 million for the fourth quarter of 2022, a decrease of $11 million compared to the prior year quarter driven by lower investment income from limited partnerships and common stock, as well as lower underwriting income, including a $36 million increase in pretax catastrophe losses to $76 million. Property & Casualty segments, excluding third party captives, generated gross written premium growth of 8%, or 9% excluding currency fluctuations, and net written premium growth of 5%, or 7% excluding currency fluctuations, driven by retention of 86% and renewal premium change of +7%.
Our Property & Casualty segments produced core income of $1,240 million for the full year 2022, an increase of $56 million compared to the prior year driven by record high underwriting income of $559 million as well as higher investment income from fixed income securities, partially offset by lower investment income from limited partnerships and common stock. Property & Casualty segments, excluding third party captives, generated gross written premium growth of 10% or 11% excluding foreign currency fluctuations, and net written premium growth of 9% or 10% excluding foreign currency fluctuations, driven by retention of 86%, new business growth of 13% and renewal premium change of +8%.
Our Life & Group segment produced a core loss of $(16) million for the fourth quarter of 2022 versus core income of $6 million in the prior year quarter driven by lower investment income from limited partnerships. Our Corporate & Other segment produced a core loss of $(52) million for the fourth quarter of 2022, an improvement of $42 million compared to the prior year quarter driven by a lower non-economic charge related to asbestos & environmental pollution and adverse development in legacy mass tort exposures in the prior year quarter.
CNA Financial declared a quarterly dividend of $0.42 per share and a special dividend of $1.20 per share, payable March 9, 2023 to stockholders of record on February 21, 2023.
Results for the Three Months Ended December 31Results for the Year Ended December 31
($ millions, except per share data)2022202120222021
Net income$248 $266 $894 $1,202 
Core income (a)
274 265 1,048 1,106 
Net income per diluted share$0.91 $0.98 $3.28 $4.41 
Core income per diluted share1.01 0.97 3.84 4.06 
December 31, 2022December 31, 2021
Book value per share$32.58$47.20
Book value per share excluding AOCI45.7146.02
(a)Management utilizes the core income (loss) financial measure to monitor the Company's operations. Please refer herein to the Reconciliation of GAAP Measures to Non-GAAP Measures section of this press release for further discussion of this non-GAAP measure.

2

"We had another excellent quarter with solid top-line growth and strong underwriting profitability which capped off an excellent year of underwriting performance. Gross written premium growth ex captives was 8% for the quarter and 10% for the year, marking two straight years of double-digit growth. Overall P&C renewal premium change was 7% in the quarter and 9% in Commercial which is up 2 points from the third quarter. The combined ratio was 93.7% for the quarter and a record low 93.2% for the year. We produced core income of $274 million for the quarter and $1,048 million for the year. Core income was greater than $1 billion for the second straight year and represents our highest two-year total on record. Given our strong results in 2022, we are optimistic about our opportunities to capitalize on the continued favorable market conditions, and achieve a meaningful benefit from the tailwind of higher yields on our fixed maturity portfolio," said Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.
3

Property & Casualty Operations
Results for the Three Months Ended December 31Results for the Year Ended December 31
($ millions)2022202120222021
Gross written premiums ex. 3rd party captives
$2,704 $2,513 $10,264 $9,303 
GWP ex. 3rd party captives change (% year over year)
8 %10 %
Net written premiums$2,284 $2,166 $8,663 $7,921 
NWP change (% year over year)5 %9 %
Net earned premiums$2,116 1,997 $8,196 $7,685 
NEP change (% year over year)6 %7 %
Underwriting gain$134 $142 $559 $290 
Net investment income$290 $306 $982 $1,178 
Core income342 353 1,240 1,184 
Loss ratio excluding catastrophes and development59.9 %60.1 %60.0 %60.0 %
Effect of catastrophe impacts3.6 2.0 3.0 5.1 
Effect of development-related items(1.1)(0.3)(1.0)(0.3)
Loss ratio62.4 %61.8 %62.0 %64.8 %
Expense ratio31.1 %30.8 %30.9 %31.1 %
Combined ratio93.7 %92.9 %93.2 %96.2 %
Combined ratio excluding catastrophes and development91.2 %91.2 %91.2 %91.4 %
•The fourth quarter underlying combined ratio was consistent with the prior year quarter. The expense ratio increased 0.3 points largely offset by 0.2 points of improvement in the underlying loss ratio, as compared with the prior year quarter.
•The fourth quarter combined ratio increased 0.8 points as compared with the prior year quarter. Catastrophe losses were $76 million, or 3.6 points of the loss ratio in the quarter compared with $40 million, or 2.0 points of the loss ratio, for the prior year quarter. Catastrophe losses for the fourth quarter of 2022 were primarily driven by Winter Storm Elliott. Favorable net prior period development improved the loss ratio by 1.1 points in the current quarter compared with 0.3 points of improvement in the prior year quarter.
•In the fourth quarter, P&C segments, excluding third party captives, generated gross written premium growth of 8%, or 9% excluding foreign currency fluctuations, and net written premium growth of 5%, or 7% excluding foreign currency fluctuations.
•For the full year, the underlying combined ratio improved 0.2 points as compared with the prior year, reflecting the lowest underlying combined ratio on record. The expense ratio improved 0.2 points and the underlying loss ratio was largely consistent with the prior year.
•For the full year, the combined ratio improved 3.0 points as compared with the prior year, reflecting the lowest combined ratio on record. Catastrophe losses were $247 million, or 3.0 points of the loss ratio for the full year compared with $397 million, or 5.1 points of the loss ratio, for the prior year.  Catastrophe losses for the full year were primarily driven by Winter Storm Elliott and Hurricane Ian. Favorable net prior period development improved the loss ratio by 1.0 points in the current year compared with 0.3 points of improvement in the prior year.
•For the full year, P&C segments, excluding third party captives, generated gross written premium growth of 10% or 11% excluding foreign currency fluctuations, and net written premium growth of 9% or 10% excluding foreign currency fluctuations.
4

Business Operating Highlights
Specialty
Results for the Three Months Ended December 31Results for the Year Ended December 31
($ millions)2022202120222021
Gross written premiums ex. 3rd party captives
$998 $1,016 $3,814 $3,672 
GWP ex. 3rd party captives change (% year over year)
(2)%4 %
Net written premiums$863 $875 $3,306 $3,225 
NWP change (% year over year)(1)%3 %
Net earned premiums$827 $806 $3,203 $3,076 
NEP change (% year over year)3 %4 %
Underwriting gain$93 $81 $366 $347 
Loss ratio excluding catastrophes and development58.4 %59.1 %58.6 %59.1 %
Effect of catastrophe impacts— 0.4 0.1 0.4 
Effect of development-related items(0.6)(0.6)(1.3)(1.4)
Loss ratio57.8 %58.9 %57.4 %58.1 %
Expense ratio30.8 %30.9 %31.0 %30.5 %
Combined ratio88.8 %89.9 %88.6 %88.7 %
Combined ratio excluding catastrophes and development89.4 %90.1 %89.8 %89.7 %
•The fourth quarter underlying combined ratio improved 0.7 points as compared with the prior year quarter. The underlying loss ratio improved 0.7 points, reflecting the lowest underlying loss ratio on record, and the expense ratio was largely consistent with the prior year quarter.
•The fourth quarter combined ratio improved 1.1 points as compared with the prior year quarter. Favorable net prior period development improved the loss ratio by 0.6 points in the current and prior year quarters.
•In the fourth quarter, gross written premiums, excluding third party captives, declined (2)% and net written premiums declined (1)%.
•For the full year, the underlying combined ratio was largely consistent with the prior year. The expense ratio increased 0.5 points driven by higher underwriting expenses. The underlying loss ratio improved 0.5 points as compared with the prior year, reflecting the lowest underlying loss ratio on record.
•For the full year, the combined ratio was largely consistent with the prior year. Favorable net prior period development improved the loss ratio by 1.3 points in the current year compared with 1.4 points of improvement in the prior year.
•For the full year, gross written premiums, excluding third party captives, grew 4% and net written premiums grew 3%.
5

Commercial
Results for the Three Months Ended December 31Results for the Year Ended December 31
($ millions)2022202120222021
Gross written premiums ex. 3rd party captives
$1,345 $1,158 $5,056 $4,334 
GWP ex. 3rd party captives change (% year over year)
16 %17 %
Net written premiums$1,096 $973 $4,193 $3,595 
NWP change (% year over year)13 %17 %
Net earned premiums$1,022 $923 $3,923 $3,552 
NEP change (% year over year)11 %10 %
Underwriting gain (loss)$12 $47 $106 $(112)
Loss ratio excluding catastrophes and development61.5 %61.4 %61.5 %61.0 %
Effect of catastrophe impacts7.2 2.9 5.6 10.0 
Effect of development-related items(0.9)(0.2)(0.7)0.5 
Loss ratio67.8 %64.1 %66.4 %71.5 %
Expense ratio30.8 %30.4 %30.4 %31.1 %
Combined ratio99.0 %94.9 %97.3 %103.1 %
Combined ratio excluding catastrophes and development92.7 %92.2 %92.4 %92.6 %
•The fourth quarter underlying combined ratio increased 0.5 points as compared with the prior year quarter. The expense ratio increased 0.4 points and the underlying loss ratio was largely consistent with the prior year quarter.
•The fourth quarter combined ratio increased 4.1 points as compared with the prior year quarter. Catastrophe losses were $74 million, or 7.2 points of the loss ratio in the quarter compared with $26 million, or 2.9 points of the loss ratio, for the prior year quarter. Favorable net prior period development improved the loss ratio by 0.9 points in the current quarter compared with 0.2 points of improvement in the prior year quarter.
•In the fourth quarter, gross written premiums, excluding third party captives, grew 16% and net written premiums grew 13%.
•For the full year, the underlying combined ratio improved 0.2 points as compared with the prior year, reflecting the lowest underlying combined ratio on record. The expense ratio improved 0.7 points driven by net earned premium growth of 10% and lower acquisition costs, partially offset by higher underwriting expenses. The underlying loss ratio increased 0.5 points as compared with the prior year primarily driven by a shift in mix of business associated with the property quota share treaty purchased during June of 2021. Our property coverages, which have a lower underlying loss ratio than most other commercial coverages, now represent a smaller proportion of net earned premiums.
•For the full year, the combined ratio improved 5.8 points as compared with the prior year. Catastrophe losses were $222 million, or 5.6 points of the loss ratio for the full year compared with $358 million, or 10.0 points of the loss ratio, for the prior year. Favorable net prior period development improved the loss ratio by 0.7 points in the current year compared with 0.5 points of unfavorable development increasing the loss ratio in the prior year.
•For the full year, gross written premiums, excluding third party captives, and net written premiums grew 17%.
6

International
Results for the Three Months Ended December 31Results for the Year Ended December 31
($ millions)2022202120222021
Gross written premiums$361 $339 $1,394 $1,297 
GWP change (% year over year)6 %7 %
Net written premiums$325 $318 $1,164 $1,101 
NWP change (% year over year)2 %6 %
Net earned premiums$267 $268 $1,070 $1,057 
NEP change (% year over year)— %1 %
Underwriting gain$29 $14 $87 $55 
Loss ratio excluding catastrophes and development58.1 %58.5 %58.5 %59.0 %
Effect of catastrophe impacts0.9 4.1 2.2 2.6 
Effect of development-related items(3.0)(0.2)(1.2)0.1 
Loss ratio56.0 %62.4 %59.5 %61.7 %
Expense ratio32.9 %32.4 %32.3 %33.1 %
Combined ratio88.9 %94.8 %91.8 %94.8 %
Combined ratio excluding catastrophes and development91.0 %90.9 %90.8 %92.1 %
•The fourth quarter underlying combined ratio was largely consistent with the prior year quarter. The expense ratio increased 0.5 points driven by higher acquisition costs. The underlying loss ratio improved 0.4 points as compared with the prior year quarter.
•The fourth quarter combined ratio improved 5.9 points as compared with the prior year quarter. Catastrophe losses were $2 million, or 0.9 points of the loss ratio in the quarter compared with $11 million, or 4.1 points of the loss ratio, for the prior year quarter. Favorable net prior period development improved the loss ratio by 3.0 points in the current quarter compared with 0.2 points of improvement in the prior year quarter.
•In the fourth quarter, excluding currency fluctuations, gross written premiums grew 16% and net written premiums grew 12%.
•For the full year, the underlying combined ratio improved 1.3 points as compared with the prior year. The expense ratio improved 0.8 points driven by lower acquisition costs. The underlying loss ratio improved 0.5 points as compared with the prior year.
•For the full year, the combined ratio improved 3.0 points as compared with the prior year. Catastrophe losses were $23 million, or 2.2 points of the loss ratio for the full year compared with $27 million, or 2.6 points of the loss ratio, for the prior year. Favorable net prior period development improved the loss ratio by 1.2 points in the current year compared with 0.1 points of unfavorable development increasing the loss ratio in the prior year.
•For the full year, excluding currency fluctuations, gross written premiums grew 14% and net written premiums grew 13%.
7

Life & Group
Results for the Three Months Ended December 31Results for the Year Ended December 31
($ millions)2022202120222021
Net earned premiums$117 $122 $473 $491 
Net investment income204 242 804 966 
Core (loss) income(16)6 (9)126 
Core results decreased $22 million for the fourth quarter of 2022 as compared with the prior year quarter primarily due to a $40 million pretax decline in net investment income from limited partnerships partially offset by improved morbidity.
Corporate & Other
Results for the Three Months Ended December 31Results for the Year Ended December 31
($ millions)2022202120222021
Net investment income$9 $3 $19 $15 
Insurance claims and policyholders' benefits40 86 76 109 
Interest expense28 28 112 112 
Core loss(52)(94)(183)(204)
Core loss improved $42 million for the fourth quarter of 2022 as compared with the prior year quarter. The application of retroactive reinsurance accounting to additional cessions to the A&EP Loss Portfolio Transfer in both periods resulted in after-tax non-economic charges of $28 million and $48 million in 2022 and 2021, respectively. The additional cessions in those periods were $87 million and $138 million, respectively. Results for the prior year quarter include a $16 million after-tax impact from unfavorable development related to legacy mass tort exposures in the fourth quarter of 2021.
Net Investment Income
Results for the Three Months Ended December 31Results for the Year Ended December 31
2022202120222021
Net investment income$503 $551 $1,805 $2,159 
Net investment income decreased $48 million for the fourth quarter of 2022 as compared with the prior year quarter. The decrease was driven by a decline in income from limited partnership and common stock investments, which returned 0.9%, or $20 million for the fourth quarter of 2022 compared with a return of 5.1%, or $108 million in the prior year quarter. The decrease was partially offset by a $33 million increase in income from fixed income securities.
Stockholders' Equity
Stockholders’ equity of $8.8 billion decreased 31% from year-end 2021, primarily due to net unrealized investment losses compared to net unrealized investment gains at year-end 2021, resulting from the effect of higher interest rates on the fair value of the fixed income portfolio and dividends paid to stockholders, partially offset by net income. Net unrealized investment gains decreased $3.8 billion after-tax driven by a decrease in unrealized investment gains of $7.8 billion, partially offset by Shadow Adjustments of $3.1 billion and tax of $1.0 billion. Book value per share of $32.58 likewise decreased 31% from year-end 2021.
Book value per share ex AOCI of $45.71 increased 7% from year-end 2021 adjusting for $3.60 of dividends per share.
As of December 31, 2022, statutory capital and surplus for the Combined Continental Casualty Companies was $10.6 billion.
8

About the Company
CNA is one of the largest U.S. commercial property and casualty insurance companies. Backed by more than 125 years of experience, CNA provides a broad range of standard and specialized insurance products and services for businesses and professionals in the U.S., Canada and Europe.  For more information, please visit CNA at www.cna.com.
Contact
Media:Analysts:
Cara McCall, 312-822-1309
Ralitza Todorova, 312-822-3834
Conference Call and Webcast/Presentation Information
A conference call for investors and the professional investment community will be held at 8:00 a.m. (CT) today. On the conference call will be Dino E. Robusto, Chairman and Chief Executive Officer of CNA Financial Corporation, Scott R. Lindquist, Executive Vice President and Chief Financial Officer of CNA Financial Corporation and other members of senior management. Participants can access the call by dialing (844) 481-2830 (USA Toll Free) or +1 (412) 317-1850 (International). The call will also be broadcast live on the internet and may be accessed from the Investor Relations page of the CNA website (www.cna.com). A presentation will be posted and available on the CNA website and will provide additional insight into the results.
The call is available to the media, but questions will be restricted to investors and the professional investment community. An online replay will be available on CNA's website following the call. Financial supplement information related to the results is available on the investor relations pages of the CNA website or by contacting [email protected].
Definition of Reported Segments
•Specialty provides management and professional liability and other coverages through property and casualty products and services using a network of brokers, independent agencies and managing general underwriters.
•Commercial works with a network of brokers and independent agents to market a broad range of property and casualty insurance products to all types of insureds targeting small business, construction, middle markets and other commercial customers.
•International underwrites property and casualty coverages on a global basis through a branch operation in Canada, a European business consisting of insurance companies based in the U.K and Luxembourg and Hardy, our Lloyd's Syndicate.
•Life & Group primarily includes the results of the individual and group long term care businesses that are in run off.
•Corporate & Other primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off, including CNA Re, asbestos and environmental pollution (A&EP), excess workers' compensation (EWC) and legacy mass tort.
Financial Measures
Management utilizes the following metrics in their evaluation of the Property & Casualty Operations. These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).
•Loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums.
•Underlying loss ratio represents the loss ratio excluding catastrophe losses and net prior year loss reserve and premium development.
•Expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums.
•Dividend ratio is the ratio of policyholders' dividends incurred to net earned premiums.
•Combined ratio is the sum of the loss, expense and dividend ratios.
•Underlying combined ratio is the sum of the underlying loss, expense and dividend ratios.
•Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes.
•Rate represents the average change in price on policies that renew excluding exposure change. For certain products within Small Business, where quantifiable, rate includes the influence of new business as well.
•Retention represents the percentage of premium dollars renewed, excluding rate and exposure changes, in comparison to the expiring premium dollars from policies available to renew.
•New business represents premiums from policies written with new customers and additional policies written with existing customers.
9

Gross written premiums ex. 3rd party captives represents gross written premiums excluding business which is ceded to third party captives, including business related to large warranty programs.
Underwriting results represent net earned premiums less total insurance expenses, which includes insurance claims and policyholders' benefits, amortization of deferred acquisition costs and other insurance related expenses, pre-tax.
Statutory capital and surplus represents the excess of an insurance company's admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices. Statutory capital and surplus as of the current period is preliminary.
The Company's investment portfolio is monitored by management through analysis of various factors including unrealized gains and losses on securities, portfolio duration and exposure to market and credit risk.
To the extent that unrealized gains on fixed income securities supporting long term care reserves would result in a premium deficiency if realized, a related increase in Insurance reserves is recorded, net of tax, as a reduction of net unrealized gains (losses), through Other comprehensive income (loss). To the extent that unrealized gains or losses on fixed income securities supporting structured settlements not funded by annuities would impact the reserve balance if realized, a related increase or decrease in Insurance reserves is recorded, net of tax, as a reduction or increase of net unrealized gains (losses), through Other comprehensive income (Shadow Adjustments).
Reconciliation of GAAP Measures to Non-GAAP Measures
This press release also contains financial measures that are not in accordance with GAAP.  Management utilizes these financial measures to monitor the Company's insurance operations and investment portfolio. The Company believes the presentation of these measures provides investors with a better understanding of the significant factors that comprise the Company's operating performance. Reconciliations of these measures to the most comparable GAAP measures follow below.
Reconciliation of Net Income (Loss) to Core Income (Loss)
Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses and any cumulative effects of changes in accounting guidance. The calculation of core income (loss) excludes net investment gains or losses because net investment gains or losses are generally driven by economic factors that are not necessarily reflective of our primary operations. Management monitors core income (loss) for each business segment to assess segment performance. Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure.
Results for the Three Months Ended December 31Results for the Year Ended December 31
($ millions)2022202120222021
Net income$248 $266 $894 $1,202 
Less: Net investment (losses) gains(26)1 (154)96 
Core income$274 $265 $1,048 $1,106 
Reconciliation of Net Income (Loss) per Diluted Share to Core Income (Loss) per Diluted Share
Core income (loss) per diluted share provides management and investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core income (loss). Core income (loss) per diluted share is core income (loss) on a per diluted share basis.
Results for the Three Months Ended December 31Results for the Year Ended December 31
2022202120222021
Net income per diluted share$0.91 $0.98 $3.28 $4.41 
Less: Net investment (losses) gains(0.10)0.01 (0.56)0.35 
Core income per diluted share$1.01 $0.97 $3.84 $4.06 
Reconciliation of Book Value per Share to Book Value per Share Excluding AOCI
Book value per share excluding AOCI allows management and investors to analyze the amount of the Company's net worth primarily attributable to the Company's business operations. The Company believes this measurement is useful as it reduces the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.
December 31, 2022December 31, 2021
Book value per share$32.58 $47.20 
Less: Per share impact of AOCI(13.13)1.18 
Book value per share excluding AOCI$45.71 $46.02 
10

Calculation of Return on Equity and Core Return on Equity
Core return on equity provides management and investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to its business operations.
Results for the Three Months Ended December 31Results for the Year Ended December 31
($ millions)2022202120222021
Annualized net income$992 $1,067 $894 $1,202 
Average stockholders' equity including AOCI (a)
8,459 12,637 10,817 12,658 
Return on equity11.7 %8.4 %8.3 %9.5 %
Annualized core income$1,096 $1,060 $1,048 $1,106 
Average stockholders' equity excluding AOCI (a)
12,308 12,403 12,435 12,196 
Core return on equity8.9 %8.5 %8.4 %9.1 %
(a)Average stockholders' equity is calculated using a simple average of the beginning and ending balances for the period.
For additional information, please refer to CNA's most recent 10-K on file with the Securities and Exchange Commission, as well as the financial supplement, available at www.cna.com.
Forward-Looking Statements
This press release includes statements that 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.
Any descriptions of coverage under CNA policies or programs in this press release are provided for convenience only and are not to be relied upon with respect to questions of coverage, exclusions or limitations. With regard to all such matters, the terms and provisions of relevant insurance policies are primary and controlling. In addition, please note that all coverages may not be available in all states.
“CNA" is a registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the "CNA" trademark in connection with insurance underwriting and claims activities. Copyright © 2023 CNA. All rights reserved.

# # #
11







CNA Financial Corporation
Supplemental Financial Information


December 31, 2022



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.


Table of Contents
Page
Consolidated Results
Results of Operations
Investment Information
Other



Statements of Operations
Periods ended December 31Three MonthsTwelve Months
(In millions)20222021Change20222021Change
Revenues:
Net earned premiums$2,232$2,1195 %$8,667$8,1756 %
Net investment income503551(9)1,8052,159(16)
Net investment gains (losses)(33)3(199)120
Non-insurance warranty revenue4013761,5741,430
Other revenues853224

Total revenues3,111 3,054 2 11,879 11,908 — 
Claims, Benefits and Expenses:
Insurance claims and policyholders' benefits1,6831,6656,3866,349
Amortization of deferred acquisition costs3893591,4901,443
Non-insurance warranty expense3793551,4711,328
Other operating expenses3383171,3391,191
Interest2828112113
Total claims, benefits and expenses2,817 2,724 (3)10,798 10,424 (4)
Income (loss) before income tax294 330 1,081 1,484 
Income tax (expense) benefit(46)(64)(187)(282)
Net income (loss)$248 $266 (7)%$894 $1,202 (26)%
1



Components of Income (Loss), Per Share Data and Return on Equity
Periods ended December 31Three MonthsTwelve Months
(In millions, except per share data)2022202120222021
Components of Income (Loss)
Core income (loss)$274 $265 $1,048 $1,106 
Net investment gains (losses)(26)1 (154)96 
Net income (loss)$248 $266 $894 $1,202 
Diluted Earnings (Loss) Per Common Share
Core income (loss)$1.01 $0.97 $3.84 $4.06 
Net investment gains (losses)(0.10)0.01 (0.56)0.35 
Diluted earnings (loss) per share$0.91 $0.98 $3.28 $4.41 
Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic271.3 271.7 271.6 271.8 
Diluted272.3 272.9 272.5 272.8 
Return on Equity
Net income (loss) (1)
11.7 %8.4 %8.3 %9.5 %
Core income (loss) (2)
8.9 8.5 8.4 9.1 
(1) Annualized net income (loss) divided by the average stockholders' equity including accumulated other comprehensive income (loss) (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 core income (loss) 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



Selected Balance Sheet Data and Statements of Cash Flows Data
(In millions, except per share data)December 31, 2022December 31, 2021
Total investments$43,177 $50,328 
Reinsurance receivables, net of allowance for uncollectible receivables5,416 5,463 
Total assets60,927 66,639 
Insurance reserves41,624 43,171 
Debt2,781 2,779 
Total liabilities52,102 53,830 
Accumulated other comprehensive income (loss) (1)
(3,557)320 
Total stockholders' equity8,825 12,809 
Book value per common share$32.58 $47.20 
Book value per common share excluding AOCI$45.71 $46.02 
Outstanding shares of common stock (in millions of shares)270.9 271.4 
Statutory capital and surplus - Combined Continental Casualty Companies (2)
$10,572 $11,321 
Three Months Ended December 3120222021
Net cash flows provided (used) by operating activities$512 $643 
Net cash flows provided (used) by investing activities(440)(631)
Net cash flows provided (used) by financing activities(108)(103)
Net cash flows provided (used) by operating, investing and financing activities$(36)$(91)
Twelve Months Ended December 3120222021
Net cash flows provided (used) by operating activities$2,502 $1,997 
Net cash flows provided (used) by investing activities(1,512)(1,228)
Net cash flows provided (used) by financing activities(1,032)(648)
Net cash flows provided (used) by operating, investing and financing activities$(42)$121 
(1) As of December 31, 2022 and 2021, the net unrealized gains on investments included in AOCI were net of after-tax Shadow Adjustments of $61 million and $2,477 million. To the extent that unrealized gains on fixed maturity securities supporting long term care reserves would result in a premium deficiency if realized, a related increase in Insurance reserves is recorded, net of tax, as a reduction of net unrealized gains (losses), through Other comprehensive income (loss). To the extent that unrealized gains or losses on fixed maturity securities supporting structured settlements not funded by annuities would impact the reserve balance if realized, a related increase or decrease in Insurance reserves is recorded, net of tax, as a reduction or increase of net unrealized gains (losses), through Other comprehensive income (Shadow Adjustments).
(2) Statutory capital and surplus as of December 31, 2022 is preliminary.
3



Property & Casualty - Results of Operations
Periods ended December 31Three MonthsTwelve Months
(In millions)20222021Change20222021Change
Gross written premiums$3,581 $3,515 2 %$14,078 $13,407 5 %
Gross written premiums ex. 3rd party captives
2,704 2,513 8 10,264 9,303 10 
Net written premiums2,284 2,166 5 8,663 7,921 9 
Net earned premiums2,116 1,997 6 8,196 7,685 7 
Net investment income290 306 (5)982 1,178 (17)
Non-insurance warranty revenue401 376 1,574 1,430 
Other revenues7 5 32 24 
Total operating revenues2,814 2,684 5 10,784 10,317 5 
Insurance claims and policyholders' benefits1,325 1,239 5,108 5,001 
Amortization of deferred acquisition costs389 359 1,490 1,443 
Non-insurance warranty expense379 355 1,471 1,328 
Other insurance related expenses268 257 1,039 951 
Other expenses27 23 113 83 
Total claims, benefits and expenses2,388 2,233 (7)9,221 8,806 (5)
Core income (loss) before income tax426 451 1,563 1,511 
Income tax (expense) benefit on core income (loss)(84)(98)(323)(327)
Core income (loss)$342 $353 (3)%$1,240 $1,184 5 %
Other Performance Metrics
Underwriting gain (loss)$134 $142 (6)%$559 $290 93 %
Loss & LAE ratio62.4 %61.8 %(0.6)pts62.0 %64.8 %2.8 pts
Expense ratio31.1 30.8 (0.3)30.9 31.1 0.2 
Dividend ratio0.2 0.3 0.1 0.3 0.3 — 
Combined ratio93.7 %92.9 %(0.8)pts93.2 %96.2 %3.0 pts
Combined ratio excluding catastrophes and development91.2 %91.2 %— pts91.2 %91.4 %0.2 pts
Net accident year catastrophe losses incurred$76 $40 $247 $397 
Effect on loss & LAE ratio3.6 %2.0 %(1.6)pts3.0 %5.1 %2.1 pts
Net prior year development and other: (favorable) / unfavorable$(20)$(5)$(76)$(22)
Effect on loss & LAE ratio(1.1)%(0.3)%0.8 pts(1.0)%(0.3)%0.7 pts
Rate4 %9 %(5)pts5 %9 %(4)pts
Renewal premium change7 %11 %(4)pts8 %12 %(4)pts
Retention86 %83 %3 pts86 %82 %4 pts
New business $470 $478 (2)%$1,876 $1,667 13 %

4



Specialty - Results of Operations
Periods ended December 31Three MonthsTwelve Months
(In millions)20222021Change20222021Change
Gross written premiums$1,874 $2,015 (7)%$7,514 $7,665 (2)%
Gross written premiums ex. 3rd party captives
998 1,016 (2)3,814 3,672 4 
Net written premiums863 875 (1)3,306 3,225 3 
Net earned premiums827 806 3 3,203 3,076 4 
Net investment income126 130 (3)431 497 (13)
Non-insurance warranty revenue401 376 1,574 1,430 
Other revenues1 — 1 1 
Total operating revenues1,355 1,312 3 5,209 5,004 4 
Insurance claims and policyholders' benefits480 476 1,845 1,790 
Amortization of deferred acquisition costs168 165 656 643 
Non-insurance warranty expense379 355 1,471 1,328 
Other insurance related expenses86 84 336 296 
Other expenses11 11 51 47 
Total claims, benefits and expenses1,124 1,091 (3)4,359 4,104 (6)
Core income (loss) before income tax231 221 850 900 
Income tax (expense) benefit on core income (loss)(48)(48)(182)(196)
Core income (loss)$183 $173 6 %$668 $704 (5)%
Other Performance Metrics
Underwriting gain (loss)$93 $81 15 %$366 $347 5 %
Loss & LAE ratio57.8 %58.9 %1.1 pts57.4 %58.1 %0.7 pts
Expense ratio30.8 30.9 0.1 31.0 30.5 (0.5)
Dividend ratio0.2 0.1 (0.1)0.2 0.1 (0.1)
Combined ratio88.8 %89.9 %1.1 pts88.6 %88.7 %0.1 pts
Combined ratio excluding catastrophes and development89.4 %90.1 %0.7 pts89.8 %89.7 %(0.1)pts
Net accident year catastrophe losses incurred$— $3 $2 $12 
Effect on loss & LAE ratio— %0.4 %0.4 pts0.1 %0.4 %0.3 pts
Net prior year development and other: (favorable) / unfavorable$(5)$(5)$(40)$(43)
Effect on loss & LAE ratio(0.6)%(0.6)%— pts(1.3)%(1.4)%(0.1)pts
Rate3 %12 %(9)pts6 %11 %(5)pts
Renewal premium change3 %13 %(10)pts7 %12 %(5)pts
Retention88 %83 %5 pts86 %83 %3 pts
New business$141 $180 (22)%$548 $551 (1)%
5



Commercial - Results of Operations
Periods ended December 31Three MonthsTwelve Months
(In millions)20222021Change20222021Change
Gross written premiums$1,346 $1,161 16 %$5,170 $4,445 16 %
Gross written premiums ex. 3rd party captives
1,345 1,158 16 5,056 4,334 17 
Net written premiums1,096 973 13 4,193 3,595 17 
Net earned premiums1,022 923 11 3,923 3,552 10 
Net investment income145 161 (10)488 624 (22)
Other revenues5 6 30 23 
Total operating revenues1,172 1,090 8 4,441 4,199 6 
Insurance claims and policyholders' benefits695 596 2,626 2,559 
Amortization of deferred acquisition costs167 145 634 594 
Other insurance related expenses148 135 557 511 
Other expenses15 10 36 38 
Total claims, benefits and expenses1,025 886 (16)3,853 3,702 (4)
Core income (loss) before income tax147 204 588 497 
Income tax (expense) benefit on core income (loss)(31)(43)(122)(103)
Core income (loss)$116 $161 (28)%$466 $394 18 %
Other Performance Metrics
Underwriting gain (loss)$12 $47 (74)%$106 $(112)195 %
Loss & LAE ratio67.8 %64.1 %(3.7)pts66.4 %71.5 %5.1 pts
Expense ratio30.8 30.4 (0.4)30.4 31.1 0.7 
Dividend ratio0.4 0.4 — 0.5 0.5 — 
Combined ratio99.0 %94.9 %(4.1)pts97.3 %103.1 %5.8 pts
Combined ratio excluding catastrophes and development 92.7 %92.2 %(0.5)pts92.4 %92.6 %0.2 pts
Net accident year catastrophe losses incurred$74 $26 $222 $358 
Effect on loss & LAE ratio7.2 %2.9 %(4.3)pts5.6 %10.0 %4.4 pts
Net prior year development and other: (favorable) / unfavorable$(7)$— $(23)$19 
Effect on loss & LAE ratio(0.9)%(0.2)%0.7 pts(0.7)%0.5 %1.2 pts
Rate5 %6 %(1)pts5 %7 %(2)pts
Renewal premium change9 %8 %1 pts8 %11 %(3)pts
Retention86 %83 %3 pts86 %82 %4 pts
New business$255 $228 12 %$1,009 $843 20 %
6



International - Results of Operations
Periods ended December 31Three MonthsTwelve Months
(In millions)20222021Change20222021Change
Gross written premiums$361 $339 6 %$1,394 $1,297 7 %
Net written premiums325 318 2 1,164 1,101 6 
Net earned premiums267 268 — 1,070 1,057 1 
Net investment income19 15 27 63 57 11 
Other revenues1 (1)1 — 
Total operating revenues287 282 2 1,134 1,114 2 
Insurance claims and policyholders' benefits150 167 637 652 
Amortization of deferred acquisition costs54 49 200 206 
Other insurance related expenses34 38 146 144 
Other expenses1 2 26 (2)
Total claims, benefits and expenses239 256 7 1,009 1,000 (1)
Core income (loss) before income tax48 26 125 114 
Income tax (expense) benefit on core income (loss)(5)(7)(19)(28)
Core income (loss)$43 $19 126 %$106 $86 23 %
Other Performance Metrics
Underwriting gain (loss)$29 $14 107 %$87 $55 58 %
Loss & LAE ratio56.0 %62.4 %6.4 pts59.5 %61.7 %2.2 pts
Expense ratio32.9 32.4 (0.5)32.3 33.1 0.8 
Dividend ratio— — — — — — 
Combined ratio88.9 %94.8 %5.9 pts91.8 %94.8 %3.0 pts
Combined ratio excluding catastrophes and development91.0 %90.9 %(0.1)pts90.8 %92.1 %1.3 pts
Net accident year catastrophe losses incurred$2 $11 $23 $27 
Effect on loss & LAE ratio0.9 %4.1 %3.2 pts2.2 %2.6 %0.4 pts
Net prior year development and other: (favorable) / unfavorable$(8)$— $(13)$2 
Effect on loss & LAE ratio(3.0)%(0.2)%2.8 pts(1.2)%0.1 %1.3 pts
Rate4 %13 %(9)pts6 %13 %(7)pts
Renewal premium change9 %14 %(5)pts11 %13 %(2)pts
Retention84 %82 %2 pts81 %78 %3 pts
New business $74 $70 6 %$319 $274 16 %
7



Life & Group - Results of Operations
Periods ended December 31Three MonthsTwelve Months
(In millions)2022202120222021
Net earned premiums$117 $122 $473 $491 
Net investment income204 242 804 966 
Other revenues(1)1 (1)— 
Total operating revenues320 365 1,276 1,457 
Insurance claims and policyholders' benefits318 340 1,202 1,239 
Other insurance related expenses29 26 118 103 
Other expenses2 5 9 10 
Total claims, benefits and expenses349 371 1,329 1,352 
Core income (loss) before income tax(29)(6)(53)105 
Income tax (expense) benefit on core income (loss)13 12 44 21 
Core income (loss)$(16)$6 $(9)$126 

8



Corporate & Other - Results of Operations
Periods ended December 31Three MonthsTwelve Months
(In millions)2022202120222021
Net earned premiums$(1)$— $(2)$(1)
Net investment income9 3 19 15 
Other revenues2 (1)1 — 
Total operating revenues10 2 18 14 
Insurance claims and policyholders' benefits40 86 76 109 
Other insurance related expenses— — 3 8 
Interest expense28 28 112 112 
Other expenses12 6 57 37 
Total claims, benefits and expenses80 120 248 266 
Core income (loss) before income tax(70)(118)(230)(252)
Income tax (expense) benefit on core income (loss)18 24 47 48 
Core income (loss)$(52)$(94)$(183)$(204)

9



Investment Summary - Consolidated
December 31, 2022September 30, 2022December 31, 2021
(In millions)Carrying ValueNet Unrealized Gains (Losses)Carrying ValueNet Unrealized Gains (Losses)Carrying ValueNet Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds$21,429 $(1,708)$20,927 $(2,167)$24,139 $2,699 
States, municipalities and political subdivisions:
Tax-exempt4,633(45)4,632(267)7,7811,119 
Taxable3,684(556)3,791(554)4,162466 
Total states, municipalities and political subdivisions8,317 (601)8,423 (821)11,943 1,585 
Asset-backed:
RMBS2,631 (442)2,689 (464)2,956 63 
CMBS1,635 (251)1,688 (233)2,031 44 
Other ABS2,927 (359)2,914 (347)2,598 44 
Total asset-backed7,193 (1,052)7,291 (1,044)7,585 151 
U.S. Treasury and obligations of government-sponsored enterprises110 (1)109 2 130 (2)
Foreign government575 (42)498 (46)583 13 
Redeemable preferred stock3 — 3 — — — 
Total fixed maturity securities37,627 (3,404)37,251 (4,076)44,380 4,446 
Equities:
Common stock185 — 210 — 233 — 
Non-redeemable preferred stock489 — 681 — 802 — 
Total equities674 — 891 — 1,035 — 
Limited partnership investments:
Hedge funds456 — 464— 595 — 
Private equity funds1,470 — 1,431— 1,264 — 
Total limited partnership investments1,926 — 1,895 — 1,859 — 
Other invested assets78 — 73 — 91 — 
Mortgage loans1,040 — 953 — 973 — 
Short term investments1,832 1 1,074 1 1,990 — 
Total investments$43,177 $(3,403)$42,137 $(4,075)$50,328 $4,446 
Net receivable/(payable) on investment activity$8 $(14)$201 
Effective duration (in years)6.6 6.7 6.6 
Weighted average rating AAA
RMBS - Residential mortgage-backed securities
CMBS - Commercial mortgage-backed securities
Other ABS - Other asset-backed securities
10



Investment Summary - Property & Casualty and Corporate & Other
December 31, 2022September 30, 2022December 31, 2021
(In millions)Carrying ValueNet Unrealized Gains (Losses)Carrying ValueNet Unrealized Gains (Losses)Carrying ValueNet Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds$13,165 $(1,260)$12,997 $(1,458)$14,897 $713 
States, municipalities and political subdivisions:
Tax-exempt1,197(211)1,275(273)1,60492
Taxable1,986(486)1,989(484)2,36969
Total states, municipalities and political subdivisions3,183 (697)3,264 (757)3,973 161 
Asset-backed:
RMBS2,617 (442)2,669 (464)2,899 60 
CMBS1,606 (248)1,651 (231)1,955 42 
Other ABS2,374 (276)2,401 (266)2,326 31 
Total asset-backed6,597 (966)6,721 (961)7,180 133 
U.S. Treasury and obligations of government-sponsored enterprises109 (1)96 2 109 (2)
Foreign government546 (34)472 (35)545 11 
Redeemable preferred stock3 — 3 — — — 
Total fixed maturity securities23,603 (2,958)23,553 (3,209)26,704 1,016 
Equities:
Common stock185 — 210 — 233 — 
Non-redeemable preferred stock73 — 140 — 179 — 
Total equities258 — 350 — 412 — 
Limited partnership investments:
Hedge funds252 — 257— 329 — 
Private equity funds814 — 792— 700 — 
Total limited partnership investments1,066 — 1,049 — 1,029 — 
Other invested assets78 — 73 — 91 — 
Mortgage loans830 — 729 — 741 — 
Short term investments1,772 1 1,048 1 1,887 — 
Total investments$27,607 $(2,957)$26,802 $(3,208)$30,864 $1,016 
Net receivable/(payable) on investment activity$(3)$(2)$145 
Effective duration (in years)4.74.84.9
Weighted average ratingAA-A
11



Investment Summary - Life & Group
December 31, 2022September 30, 2022December 31, 2021
(In millions)Carrying ValueNet Unrealized Gains (Losses)Carrying ValueNet Unrealized Gains (Losses)Carrying ValueNet Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds$8,264 $(448)$7,930 $(709)$9,242 $1,986 
States, municipalities and political subdivisions:
Tax-exempt3,4361663,35766,1771,027
Taxable1,698(70)1,802(70)1,793397
Total states, municipalities and political subdivisions5,134 96 5,159 (64)7,970 1,424 
Asset-backed:
RMBS14 — 20 — 57 3 
CMBS29 (3)37 (2)76 2 
Other ABS553 (83)513 (81)272 13 
Total asset-backed596 (86)570 (83)405 18 
U.S. Treasury and obligations of government-sponsored enterprises1 — 13 — 21 — 
Foreign government29 (8)26 (11)38 2 
Redeemable preferred stock— — — — — — 
Total fixed maturity securities14,024 (446)13,698 (867)17,676 3,430 
Equities:
Common stock— — — — — — 
Non-redeemable preferred stock416 — 541 — 623 — 
Total equities416 — 541 — 623 — 
Limited partnership investments:
Hedge funds204 — 207— 266 — 
Private equity funds656 — 639— 564 — 
Total limited partnership investments860 — 846 — 830 — 
Other invested assets— — — — — — 
Mortgage loans210 — 224 — 232 — 
Short term investments60 — 26 — 103 — 
Total investments$15,570 $(446)$15,335 $(867)$19,464 $3,430 
Net receivable/(payable) on investment activity$11 $(12)$56 
Effective duration (in years)9.99.89.2
Weighted average ratingAAA
12



Investments - Fixed Maturity Securities by Credit Rating
December 31, 2022U.S. Government, Government agencies and Government-sponsored enterprisesAAAAAABBBNon-investment gradeTotal
(In millions)Fair ValueNet Unrealized Gains (Losses)Fair ValueNet Unrealized Gains (Losses)Fair ValueNet Unrealized Gains (Losses)Fair ValueNet Unrealized Gains (Losses)Fair ValueNet Unrealized Gains (Losses)Fair ValueNet Unrealized Gains (Losses)Fair ValueNet Unrealized Gains (Losses)
Corporate and other bonds$— $— $30 $(3)$433 $(35)$5,660 $(330)$13,866 $(1,169)$1,440 $(171)$21,429 $(1,708)
States, municipalities and political subdivisions— — 1,361 (35)4,757 (454)1,918 (45)280 (67)1 — 8,317 (601)
Asset-backed:
RMBS2,309 (335)250 (110)2 — 10 — 17 — 43 3 2,631 (442)
CMBS— — 312 (30)660 (110)219 (36)323 (52)121 (23)1,635 (251)
Other ABS— — 285 (23)186 (44)1,155 (107)1,135 (157)166 (28)2,927 (359)
Total asset-backed2,309 (335)847 (163)848 (154)1,384 (143)1,475 (209)330 (48)7,193 (1,052)
U.S. Treasury and obligations of government-sponsored enterprises110 (1)— — — — — — — — — — 110 (1)
Foreign government— — 160 (7)304 (20)81 (13)30 (2)— — 575 (42)
Redeemable preferred stock— — — — — — — — — — 3 — 3 — 
Total fixed maturity securities$2,419 $(336)$2,398 $(208)$6,342 $(663)$9,043 $(531)$15,651 $(1,447)$1,774 $(219)$37,627 $(3,404)
Percentage of total fixed maturity securities6 %6 %17 %24 %42 %5 %100 %
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Components of Net Investment Income
Consolidated
Periods ended December 31Three MonthsTwelve Months
(In millions)2022202120222021
Taxable fixed income securities$422 $364 $1,585 $1,439 
Tax-exempt fixed income securities50 75 244 311 
Total fixed income securities 472 439 1,829 1,750 
Common stock2120(19)40
Limited partnerships - hedge funds 7— (37)35
Limited partnerships - private equity funds (8)8825327
Total limited partnership and common stock investments20 108 (31)402 
Other, net of investment expense11 4 7 7 
Net investment income$503 $551 $1,805 $2,159 
Effective income yield for fixed income securities portfolio4.5 %4.3 %4.4 %4.3 %
Limited partnership and common stock return0.9 5.1 (1.4)22.3 
Property & Casualty and Corporate & Other
Periods ended December 31Three MonthsTwelve Months
(In millions)2022202120222021
Taxable fixed income securities$255 $226 $964 $892 
Tax-exempt fixed income securities11 11 45 48 
Total fixed income securities 266 237 1,009 940 
Common stock2120(19)40
Limited partnerships - hedge funds4— (20)19
Limited partnerships - private equity funds(5)48 13181 
Total limited partnership and common stock investments20 68 (26)240 
Other, net of investment expense13 4 18 13 
Net investment income$299 $309 $1,001 $1,193 
Effective income yield for fixed income securities portfolio4.0 %3.6 %3.8 %3.7 %
Life & Group
Periods ended December 31Three MonthsTwelve Months
(In millions)2022202120222021
Taxable fixed income securities$167 $138 $621 $547 
Tax-exempt fixed income securities39 64 199 263 
Total fixed income securities 206 202 820 810 
Common stock— — — — 
Limited partnerships - hedge funds3— (17)16 
Limited partnerships - private equity funds(3)4012146
Total limited partnership and common stock investments— 40 (5)162 
Other, net of investment expense(2)— (11)(6)
Net investment income$204 $242 $804 $966 
Effective income yield for fixed income securities portfolio5.5 %5.4 %5.4 %5.5 %
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Net Investment Gains (Losses)
Periods ended December 31Consolidated
Three MonthsTwelve Months
(In millions)2022202120222021
Fixed maturity securities: (1)
Corporate and other bonds$(21)$19 $(89)$134 
States, municipalities and political subdivisions(2)— 26 — 
Asset-backed(5)(14)(34)(38)
Total fixed maturity securities(28)5 (97)96 
Non-redeemable preferred stock(5)(13)(116)4 
Derivatives, short term and other — 1 22 10 
Mortgage loans — 10 (8)10 
Net investment gains (losses)(33)3 (199)120 
Income tax benefit (expense) on net investment gains (losses)7 (2)45 (24)
Net investment gains (losses), after tax$(26)$1 $(154)$96 

(1) Excludes the loss in 2022 on the assets supporting the funds withheld liability, which is reflected in the Derivatives, short term and other line.

Derivatives, short term and other for the twelve months ended December 31, 2022 includes an $18 million non-economic net gain related to the coinsurance agreement on the Company's legacy annuity business in the Life & Group segment and the associated funds withheld embedded derivative, which was novated in 2022.
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Claim & Claim Adjustment Expense Reserve Rollforward
Three months ended December 31, 2022
(In millions)

Specialty
Commercial		InternationalP&C OperationsLife & Group Corporate & Other Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross$6,925 $9,172 $2,262 $18,359 $3,645 $2,696 $24,700 
Ceded1,440 867 378 2,685 106 2,356 5,147 
Net5,485 8,305 1,884 15,674 3,539 340 19,553 
Net incurred claim & claim adjustment expenses479 692 149 1,320 276 4 1,600 
Net claim & claim adjustment expense payments(400)(570)(133)(1,103)(260)(4)(1,367)
Foreign currency translation adjustment and other(1)3 103 105 18 (1)122 
Claim & claim adjustment expense reserves, end of period
Net5,563 8,430 2,003 15,996 3,573 339 19,908 
Ceded1,315 965 400 2,680 101 2,410 5,191 
Gross$6,878 $9,395 $2,403 $18,676 $3,674 $2,749 $25,099 
Twelve months ended December 31, 2022
(In millions)

Specialty		 
Commercial		InternationalP&C OperationsLife & Group Corporate & Other Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross$6,433 $8,890 $2,280 $17,603 $3,754 $2,817 $24,174 
Ceded1,168 825 340 2,333 113 2,523 4,969 
Net5,265 8,065 1,940 15,270 3,641 294 19,205 
Net incurred claim & claim adjustment expenses1,839 2,608 636 5,083 1,063 80 6,226 
Net claim & claim adjustment expense payments(1,540)(2,242)(437)(4,219)(1,008)(34)(5,261)
Foreign currency translation adjustment and other(1)(1)(136)(138)(123)(1)(262)
Claim & claim adjustment expense reserves, end of period
Net5,563 8,430 2,003 15,996 3,573 339 19,908 
Ceded1,315 965 400 2,680 101 2,410 5,191 
Gross$6,878 $9,395 $2,403 $18,676 $3,674 $2,749 $25,099 
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Life & Group Policyholder Reserves
December 31, 2022
(In millions)Claim and claim adjustment expensesFuture policy benefitsTotal
Long term care$2,979 $10,151 $13,130 
Structured settlement annuities and other517— 517 
Total 3,496 10,151 13,647 
Shadow adjustments77— 77 
Ceded reserves101— 101 
Total gross reserves$3,674 $10,151 13,825 
December 31, 2021
(In millions)Claim and claim adjustment expensesFuture policy benefitsTotal
Long term care$2,905 $10,012 $12,917 
Structured settlement annuities and other536— 536 
Total 3,441 10,012 13,453 
Shadow adjustments 2002,936 3,136 
Ceded reserves113288 401 
Total gross reserves$3,754 $13,236 $16,990 
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Definitions and Presentation
•Collectively, CNA Financial Corporation (CNAF) and its subsidiaries are referred to as CNA or the Company.
•P&C Operations includes Specialty, Commercial and International.
•Life & Group segment primarily includes the results of long term care businesses that are in run-off.
•Corporate & Other segment primarily includes certain corporate expenses including interest on corporate debt and the results of certain property and casualty businesses in run-off, including CNA Re, asbestos and environmental pollution, excess workers' compensation and legacy mass tort. Intersegment eliminations are also included in this segment.
•Management uses the core income (loss) financial measure to monitor the Company’s operations. Please refer to Note O to the Consolidated Financial Statements within the December 31, 2022 Form 10-K for further discussion of this non-GAAP financial measure.
•Management uses underwriting gain (loss) to monitor insurance operations of our Specialty, Commercial and International segments. Underwriting gain (loss) is pretax and calculated as net earned premiums less total insurance expenses, which includes insurance claims and policyholders' benefits, amortization of deferred acquisition costs and other insurance related expenses.
•In the evaluation of the results of Specialty, Commercial and International, management uses the loss ratio, the expense ratio, the dividend ratio and the combined ratio. These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America. 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. In addition, management also utilizes renewal premium change, rate, retention and new business in evaluating operating trends. Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes. Rate represents the average change in price on policies that renew excluding exposure change. For certain products within Small Business, where quantifiable, rate includes the influence of new business as well. Exposure represents the measure of risk used in the pricing of the insurance product. Retention represents the percentage of premium dollars renewed, excluding rate and exposure changes, in comparison to the expiring premium dollars from policies available to renew. Rate, renewal premium change and retention presented for the prior year is updated to reflect subsequent activity on policies written in the period. New business represents premiums from policies written with new customers and additional policies written with existing customers.
•This financial supplement may also reference or contain financial measures that are not in accordance with GAAP. Management utilizes these financial measures to monitor the Company's insurance operations and investment portfolio. Core income, which is derived from certain income statement amounts, is used by management to monitor performance of the Company's insurance operations. The Company's investment portfolio is monitored by management through analysis of various factors including unrealized gains and losses on securities, portfolio duration and exposure to market and credit risk.
•Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses and any cumulative effects of changes in accounting guidance. The calculation of core income (loss) excludes net investment gains or losses because net investment gains or losses are generally driven by economic factors that are not necessarily reflective of our primary operations. Management monitors core income (loss) for each business segment to assess segment performance. Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure. For reconciliations of non-GAAP measures to the most comparable GAAP measures and other information, please refer herein and/or to CNA's most recent 10-K on file with the Securities and Exchange Commission, as well as the press release, available at www.cna.com.
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•Gross written premiums ex. 3rd party captives represents gross written premiums excluding business which is ceded to third party captives, including business related to large warranty programs.
•Statutory capital and surplus represents the excess of an insurance company's admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices.
•Pretax net prior year development and other includes the effects of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.
•Net investment income from fixed income securities, as presented, includes both fixed maturity securities and non-redeemable preferred stock.
•Certain immaterial differences are due to rounding.
•N/M = Not Meaningful

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