Cna Financial Corp 10-Q for FY2026 Q3

Cna Financial Corp (CNA)

10-Q 2026-11-02 For: 2026-09-30

Added on November 02, 2026

About this 10-Q

Cna Financial Corp filed this 10-Q on November 2, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

CNA's core income fell $273 million for the nine months ended September 30, 2026, driven by weaker Property & Casualty underwriting, adverse reserve development and higher catastrophe losses, plus a $173 million Life & Group reserve increase. AI summary

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $3.82B; up 0.1% from $3.82B a year earlier
Net income: $196M; down 51.4% from net income of $403M a year earlier
Diluted EPS: $0.72; down 51.4% from $1.48 a year earlier

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Delaware						36-6169860
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


151 N. Franklin		60606
Chicago,	Illinois	(Zip Code)
(Address of principal executive offices)


Item Number		Page Number
	PART I
1.	Condensed Consolidated Financial Statements:	3
	Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2026 and 2025 (Unaudited)	3
	Condensed Consolidated Statements of Comprehensive (Loss) Income for the three and nine months ended September 30, 2026 and 2025 (Unaudited)	4
	Condensed Consolidated Balance Sheets as of September 30, 2026 (Unaudited) and December 31, 2025	5
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2026 and 2025 (Unaudited)	6
	Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2026 and 2025 (Unaudited)	7
	Notes to Condensed Consolidated Financial Statements (Unaudited)	8
2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	45
3.	Quantitative and Qualitative Disclosures About Market Risk	68
4.	Controls and Procedures	68
	PART II
1	Legal Proceedings	69


6	Exhibits	69


Periods ended September 30	Three Months				Nine Months
(In millions, except per share data)	2026		2025		2026		2025
Revenues
Net earned premiums	$	2,831	$	2,783	$	8,291	$	8,103
Net investment income	635		638		1,946		1,904
Net investment losses	(9)		(7)		(32)		(62)
Non-insurance warranty revenue	357		393		1,098		1,188
Other revenues	7		10		24		28
Total revenues	3,821		3,817		11,327		11,161
Claims, Benefits and Expenses
Insurance claims and policyholders’ benefits (re-measurement loss of $222, $36, $266 and $59)	2,347		2,032		6,691		6,144
Amortization of deferred acquisition costs	492		483		1,449		1,423
Non-insurance warranty expense	339		377		1,051		1,146
Other operating expenses	374		376		1,129		1,107
Interest expense	32		36		98		99
Total claims, benefits and expenses	3,584		3,304		10,418		9,919
Income before income tax	237		513		909		1,242
Income tax expense	(41)		(110)		(181)		(266)
Net income	$	196	$	403	$	728	$	976

Basic earnings per share	$	0.72	$	1.49	$	2.69	$	3.60

Diluted earnings per share	$	0.72	$	1.48	$	2.67	$	3.58

Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic	270.9		271.1		271.0		271.2
Diluted	272.0		272.3		272.0		272.4


Periods ended September 30	Three Months				Nine Months
(In millions)	2026		2025		2026		2025
Comprehensive Income
Net income	$	196	$	403	$	728	$	976
Other Comprehensive (Loss) Income, net of tax
Changes in:
Net unrealized gains and losses on investments with an allowance for credit losses	—		3		(8)		1
Net unrealized gains and losses on other investments	(1,844)		558		(2,079)		913
Net unrealized gains and losses on investments	(1,844)		561		(2,087)		914
Impact of changes in discount rates used to measure long-duration contract liabilities	818		(150)		998		(267)
Foreign currency translation adjustment	(7)		(38)		(63)		128
Pension and postretirement benefits	—		2		1		5
Other comprehensive (loss) income, net of tax	(1,033)		375		(1,151)		780
Total comprehensive (loss) income	$	(837)	$	778	$	(423)	$	1,756


			☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


			☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



(In millions, except share data)	September 30, 2026 (Unaudited)		December 31, 2025
Assets
Investments:
Fixed maturity securities at fair value (amortized cost of $46,013 and $44,668, less allowance for credit loss of $65 and $69)	$	42,067	$	43,402
Equity securities at fair value (cost of $761 and $728)	783		769
Limited partnership investments	2,980		2,772
Other invested assets	119		105
Mortgage loans (less allowance for credit loss of $15 and $15)	1,009		1,079
Short-term investments	1,684		2,320
Total investments	48,642		50,447
Cash	360		425
Reinsurance receivables (less allowance for uncollectible receivables of $27 and $27)	6,552		6,381
Insurance receivables (less allowance for uncollectible receivables of $23 and $25)	3,758		3,739
Accrued investment income	508		480
Deferred acquisition costs	1,014		986
Deferred income taxes	880		575
Property and equipment at cost (less accumulated depreciation of $332 and $346)	290		282
Goodwill	147		148
Deferred non-insurance warranty acquisition expense	2,868		3,220
Other assets	2,883		2,760
Total assets	$	67,902	$	69,443
Liabilities
Insurance reserves:
Claim and claim adjustment expenses	$	27,917	$	26,599
Unearned premiums	7,714		7,635
Future policy benefits	12,437		13,448
Short-term debt	499		—
Long-term debt	2,475		2,971
Deferred non-insurance warranty revenue	3,626		4,138
Other liabilities (includes $68 and $54 due to Loews Corporation)	3,005		3,031
Total liabilities	57,673		57,822
Commitments and contingencies (Notes C and G)
Stockholders' Equity
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 270,607,183 and 270,671,747 shares outstanding)	683		683
Additional paid-in capital	2,209		2,229
Retained earnings	9,702		9,915
Accumulated other comprehensive loss	(2,249)		(1,098)
Treasury stock (2,433,060 and 2,368,496 shares), at cost	(116)		(108)
Total stockholders’ equity	10,229		11,621
Total liabilities and stockholders' equity	$	67,902	$	69,443


Nine months ended September 30
(In millions)	2026		2025
Cash Flows from Operating Activities
Net income	$	728	$	976
Adjustments to reconcile net income to net cash flows provided by operating activities:
Deferred income tax (benefit) expense	(11)		91
Trading portfolio activity	—		(14)
Net investment losses	32		62
Equity method investees	(31)		(37)
Net amortization of investments	(164)		(149)
Depreciation and amortization	58		53
Changes in:
Receivables, net	(212)		(318)
Accrued investment income	(30)		(26)
Deferred acquisition costs	(32)		(16)
Insurance reserves	1,798		1,522
Other, net	(440)		(224)
Net cash flows provided by operating activities	1,696		1,920
Cash Flows from Investing Activities
Dispositions:
Fixed maturity securities - sales	2,515		2,432
Fixed maturity securities - maturities, calls and redemptions	2,420		2,567
Equity securities	467		396
Limited partnerships	154		89
Mortgage loans	99		69
Purchases:
Fixed maturity securities	(6,207)		(6,052)
Equity securities	(476)		(429)
Limited partnerships	(300)		(252)
Mortgage loans	(28)		(110)
Change in other investments	(13)		(5)
Change in short-term investments	668		(94)
Purchases of property and equipment	(53)		(58)

Other, net	2		1
Net cash flows used by investing activities	(752)		(1,446)
Cash Flows from Financing Activities
Dividends paid to common stockholders	(943)		(922)
Proceeds from the issuance of debt	—		495

Purchase of treasury stock	(36)		(34)
Other, net	(22)		(17)
Net cash flows used by financing activities	(1,001)		(478)
Effect of foreign exchange rate changes on cash	(8)		15
Net change in cash	(65)		11
Cash, beginning of year	425		472
Cash, end of period	$	360	$	483


September 30, 2026	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	25,753	$	173	$	1,865	$	17	$	24,044
States, municipalities and political subdivisions	9,554		101		1,247		—		8,408
Asset-backed:
Residential mortgage-backed	4,481		2		612		—		3,871
Commercial mortgage-backed	1,554		6		107		21		1,432
Other asset-backed	3,636		7		299		27		3,317
Total asset-backed	9,671		15		1,018		48		8,620
U.S. Treasury and obligations of government-sponsored enterprises	282		—		5		—		277
Foreign government	745		1		36		—		710
Redeemable preferred stock	8		—		—		—		8
Total fixed maturity securities available-for-sale	$	46,013	$	290	$	4,171	$	65	$	42,067

Total fixed maturity securities	$	46,013	$	290	$	4,171	$	65	$	42,067


	Less than 12 Months				12 Months or Longer				Total
September 30, 2026	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	12,474	$	629	$	6,978	$	1,236	$	19,452	$	1,865
States, municipalities and political subdivisions	3,560		205		3,074		1,042		6,634		1,247
Asset-backed:
Residential mortgage-backed	2,115		124		1,683		488		3,798		612
Commercial mortgage-backed	543		17		748		90		1,291		107
Other asset-backed	1,167		39		1,250		260		2,417		299
Total asset-backed	3,825		180		3,681		838		7,506		1,018
U.S. Treasury and obligations of government-sponsored enterprises	261		4		11		1		272		5
Foreign government	400		14		205		22		605		36
Total	$	20,520	$	1,032	$	13,949	$	3,139	$	34,469	$	4,171


(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of July 1, 2026	$	16	$	47	$	63
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	—		—		—
Available-for-sale securities accounted for as PCD assets	—		—		—

Reductions to the allowance for credit losses:

Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	1		—		1



Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	2		1		3
Balance as of September 30, 2026	$	17	$	48	$	65


September 30, 2026	Mortgage Loans Amortized Cost Basis by Origination Year (1)
(In millions)	2026		2025		2024		2023		2022		Prior		Total
DSCR ≥1.6x
LTV less than 55%	$	—	$	38	$	—	$	15	$	19	$	227	$	299
LTV 55% to 65%	—		37		—		12		12		—		61
LTV greater than 65%	—		—		—		—		—		13		13
DSCR 1.2x - 1.6x
LTV less than 55%	29		11		68		46		—		77		231
LTV 55% to 65%	—		96		33		18		51		19		217
LTV greater than 65%	5		7		—		—		15		—		27
DSCR ≤1.2x
LTV less than 55%	—		37		—		—		37		32		106
LTV 55% to 65%	—		—		—		—		7		—		7
LTV greater than 65%	—		—		—		—		17		46		63
Total	$	34	$	226	$	101	$	91	$	158	$	414	$	1,024


Level 3 (In millions)	Corporate bonds and other		States, municipalities and political subdivisions		Asset-backed		Equity securities		Total
Balance as of July 1, 2026	$	1,594	$	44	$	943	$	10	$	2,591
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	(2)		—		(1)		—		(3)
Reported in Net investment income	—		—		5		1		6
Reported in Other comprehensive income (loss)	(80)		(2)		(35)		—		(117)
Total realized and unrealized investment gains (losses)	(82)		(2)		(31)		1		(114)
Purchases	61		—		57		—		118
Sales	—		—		—		—		—
Settlements	(6)		(1)		(30)		—		(37)
Transfers into Level 3	—		—		—		—		—
Transfers out of Level 3	(7)		—		(13)		—		(20)
Balance as of September 30, 2026	$	1,560	$	41	$	926	$	11	$	2,538
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2026 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	1	$	1
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2026 recognized in Other comprehensive income (loss) in the period	(80)		(2)		(35)		—		(117)


September 30, 2026	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	1,009	$	—	$	—	$	972	$	972
Liabilities
Short-term debt	$	499	$	—	$	493	$	—	$	493
Long-term debt	2,475		—		2,329		—		2,329


	September 30, 2026				December 31, 2025
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
U.S. Government, Government agencies and Government-sponsored enterprises	$	3,200	$	469	$	1,980	$	267
AAA	3,437		448		1,376		243
AA	6,113		1,062		3,827		623
A	8,314		843		5,025		440
BBB	12,137		1,181		7,758		639
Non-investment grade	1,268		168		678		74
Total	$	34,469	$	4,171	$	20,644	$	2,286


	September 30, 2026				December 31, 2025
(In millions)	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,475	$	1,463	$	1,392	$	1,389
Due after one year through five years	10,970		10,546		11,318		11,214
Due after five years through ten years	12,996		12,039		13,491		13,238
Due after ten years	20,572		18,019		18,467		17,561
Total	$	46,013	$	42,067	$	44,668	$	43,402


For the nine months ended September 30
(In millions)	2026		2025
Reserves, beginning of year:
Gross	$	26,599	$	24,976
Ceded	5,982		5,713
Net reserves, beginning of year	20,617		19,263
Net incurred claim and claim adjustment expenses:
Provision for insured events of current year	5,366		5,011
Increase (decrease) in provision for insured events of prior years	189		191
Amortization of discount	28		29
Total net incurred (1)	5,583		5,231
Net payments attributable to:
Current year events	(691)		(659)
Prior year events	(3,551)		(3,463)
Total net payments	(4,242)		(4,122)
Foreign currency translation adjustment and other	(106)		165
Net reserves, end of period	21,852		20,537
Ceded reserves, end of period	6,065		5,988
Gross reserves, end of period	$	27,917	$	26,525


	As of September 30
(In millions)	2026		2025
Expected future benefit and expense payments	$	31,316	$	31,582
Expected future gross premiums	4,667		5,048


	As of September 30				As of December 31
	2026		2025		2025
Original locked in discount rate	5.13	%	5.16	%	5.16	%
Upper-medium grade fixed income instrument discount rate	6.25		5.24		5.32


(In millions)	Net unrealized gains (losses) on investments with an allowance for credit losses		Net unrealized gains (losses) on other investments		Pension and postretirement benefits		Cumulative impact of changes in discount rates used to measure long duration contracts		Cumulative foreign currency translation adjustment		Total


Balance as of July 1, 2026	$	(23)	$	(1,223)	$	(165)	$	372	$	(177)	$	(1,216)
Other comprehensive income (loss) before reclassifications	(3)		(1,838)		—		818		(7)		(1,030)
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $—, $(2), $—, $—, $— and $(2)	(3)		6		—		—		—		3
Other comprehensive income (loss) net of tax (expense) benefit of $—, $494, $—, $(217), $— and $277	—		(1,844)		—		818		(7)		(1,033)
Balance as of September 30, 2026	$	(23)	$	(3,067)	$	(165)	$	1,190	$	(184)	$	(2,249)


Component of AOCI						Condensed Consolidated Statements of Operations Line Item Affected by Reclassifications
Net unrealized gains (losses) on investments with an allowance for credit losses and Net unrealized gains (losses) on other investments						Net investment gains (losses)
Pension and postretirement benefits						Other operating expenses and Insurance claims and policyholders' benefits


Three months ended September 30, 2026	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total

Operating revenues
Net earned premiums	$	907	$	1,475	$	349	$	101	$	—	$	(1)	$	2,831
Net investment income	150		204		48		223		10		—		635
Non-insurance warranty revenue	357		—		—		—		—		—		357
Other revenues	—		5		—		1		3		(2)		7
Total operating revenues	1,414		1,684		397		325		13		(3)		3,830
Claims, benefits and expenses
Net incurred claims and benefits	570		1,075		181		516		(6)		—		2,336
Policyholders’ dividends	3		8		—		—		—		—		11
Amortization of deferred acquisition costs	207		213		72		—		—		—		492
Non-insurance warranty expense	339		—		—		—		—		—		339
Insurance related administrative expenses	97		176		47		30		—		(1)		349
Interest expense	—		—		—		—		32		—		32
Other segment items (1)	13		10		(14)		1		17		(2)		25
Total claims, benefits and expenses	1,229		1,482		286		547		43		(3)		3,584



Income tax (expense) benefit on core income (loss)	(39)		(40)		(22)		51		7		—		(43)

Core income (loss)	$	146	$	162	$	89	$	(171)	$	(23)	$	—	$	203
Net investment gains (losses)													(9)
Income tax (expense) benefit on net investment gains (losses)													2
Net investment gains (losses), after tax													(7)



Net income (loss)													$	196


Three months ended September 30, 2025	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total

Operating revenues
Net earned premiums	$	881	$	1,453	$	344	$	106	$	—	$	(1)	$	2,783
Net investment income	162		192		42		226		16		—		638
Non-insurance warranty revenue	393		—		—		—		—		—		393
Other revenues	1		8		—		—		2		(1)		10
Total operating revenues	1,437		1,653		386		332		18		(2)		3,824
Claims, benefits and expenses
Net incurred claims and benefits	534		960		203		336		(10)		—		2,023
Policyholders’ dividends	2		7		—		—		—		—		9
Amortization of deferred acquisition costs	197		215		71		—		—		—		483
Non-insurance warranty expense	377		—		—		—		—		—		377
Insurance related administrative expenses	88		165		42		29		1		(1)		324
Interest expense	—		—		—		—		36		—		36
Other segment items (1)	16		11		(1)		—		27		(1)		52
Total claims, benefits and expenses	1,214		1,358		315		365		54		(2)		3,304



Income tax (expense) benefit on core income (loss)	(47)		(62)		(24)		11		11		—		(111)

Core income (loss)	$	176	$	233	$	47	$	(22)	$	(25)	$	—	$	409
Net investment gains (losses)													(7)
Income tax (expense) benefit on net investment gains (losses)													1
Net investment gains (losses), after tax													(6)



Net income (loss)													$	403


Nine months ended September 30, 2026	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total

Operating revenues
Net earned premiums	$	2,637	$	4,328	$	1,020	$	307	$	—	$	(1)	$	8,291
Net investment income	463		640		135		677		31		—		1,946
Non-insurance warranty revenue	1,098		—		—		—		—		—		1,098
Other revenues	1		22		—		—		9		(8)		24
Total operating revenues	4,199		4,990		1,155		984		40		(9)		11,359
Claims, benefits and expenses
Net incurred claims and benefits	1,707		3,154		594		1,150		54		—		6,659
Policyholders’ dividends	10		22		—		—		—		—		32
Amortization of deferred acquisition costs	605		626		218		—		—		—		1,449
Non-insurance warranty expense	1,051		—		—		—		—		—		1,051
Insurance related administrative expenses	277		522		135		90		1		(1)		1,024
Interest expense	—		—		—		—		98		—		98
Other segment items (1)	40		32		(12)		1		52		(8)		105
Total claims, benefits and expenses	3,690		4,356		935		1,241		205		(9)		10,418



Income tax (expense) benefit on core income (loss)	(107)		(128)		(57)		67		36		—		(189)

Core income (loss)	$	402	$	506	$	163	$	(190)	$	(129)	$	—	$	752
Net investment gains (losses)													(32)
Income tax (expense) benefit on net investment gains (losses)													8
Net investment gains (losses), after tax													(24)



Net income (loss)													$	728


Nine months ended September 30, 2025	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total

Operating revenues
Net earned premiums	$	2,573	$	4,235	$	978	$	318	$	—	$	(1)	$	8,103
Net investment income	483		575		114		687		45		—		1,904
Non-insurance warranty revenue	1,188		—		—		—		—		—		1,188
Other revenues	1		26		—		—		8		(7)		28
Total operating revenues	4,245		4,836		1,092		1,005		53		(8)		11,223
Claims, benefits and expenses
Net incurred claims and benefits	1,562		2,907		590		949		107		—		6,115
Policyholders’ dividends	7		22		—		—		—		—		29
Amortization of deferred acquisition costs	581		645		197		—		—		—		1,423
Non-insurance warranty expense	1,146		—		—		—		—		—		1,146
Insurance related administrative expenses	268		498		125		90		2		(1)		982
Interest expense	—		—		—		—		99		—		99
Other segment items (1)	41		36		(12)		1		66		(7)		125
Total claims, benefits and expenses	3,605		4,108		900		1,040		274		(8)		9,919


Income tax (expense) benefit on core income (loss)	(137)		(153)		(55)		20		46		—		(279)

Core income (loss)	$	503	$	575	$	137	$	(15)	$	(175)	$	—	$	1,025
Net investment gains (losses)													(62)
Income tax (expense) benefit on net investment gains (losses)													13
Net investment gains (losses), after tax													(49)



Net income (loss)													$	976


September 30, 2026
	Estimated reduction to pretax income
Hypothetical revisions (In millions)
Morbidity:
2.5% increase in morbidity	$	320
5% increase in morbidity	640
Persistency:
5% decrease in active life mortality and lapse	$	190
10% decrease in active life mortality and lapse	380
Premium Rate Actions:
25% decrease in future unapproved rate increase premium	$	30
50% decrease in future unapproved rate increase premium	60


		CNA Financial Corporation

Dated: November 2, 2026	By	/s/ Scott R. Lindquist
		Scott R. Lindquist Executive Vice President and Chief Financial Officer (Duly authorized officer and principal financial officer)


Description of Exhibit			Exhibit Number

Certification of Chief Executive Officer			31.1

Certification of Chief Financial Officer			31.2

Written Statement of the Chief Executive Officer of CNA Financial Corporation Pursuant to 18 U.S.C. Section 1350 (As adopted by Section 906 of the Sarbanes-Oxley Act of 2002)			32.1

Written Statement of the Chief Financial Officer of CNA Financial Corporation Pursuant to 18 U.S.C. Section 1350 (As adopted by Section 906 of the Sarbanes-Oxley Act of 2002)			32.2

XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document			101.INS

Inline XBRL Taxonomy Extension Schema			101.SCH

Inline XBRL Taxonomy Extension Calculation Linkbase			101.CAL

Inline XBRL Taxonomy Extension Definition Linkbase			101.DEF

Inline XBRL Taxonomy Label Linkbase			101.LAB

Inline XBRL Taxonomy Extension Presentation Linkbase			101.PRE

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)			104.1