cna-20221031

FOR IMMEDIATE RELEASE

CNA FINANCIAL ANNOUNCES THIRD QUARTER 2022

NET INCOME OF $0.47 PER SHARE AND CORE INCOME OF $0.78 PER SHARE

•Net income of $128 million, which includes $85 million of net investment losses, versus net income of $256 million, which includes $19 million of net investment gains, in the prior year quarter.

•Core income of $213 million versus $237 million in the prior year quarter reflects a $121 million pretax decline in investment income from LPs and common stock, partially offset by a $28 million pretax increase in investment income from fixed income securities and an $85 million pretax increase in P&C underwriting income.

•P&C core income of $260 million versus $217 million in the prior year quarter reflects higher pretax underwriting income and higher investment income from fixed income securities, partially offset by lower investment income from LPs and common stock.

•Life & Group core loss of $(22) million versus core income of $41 million in the prior year quarter reflects lower investment income from LPs. Results for the third quarter of 2022 included a favorable impact of $30 million pretax from the annual claim reserve reviews and there was no long term care unlocking event for active life reserves as a result of the gross premium valuation.

•Corporate & Other core loss of $(25) million versus $(21) million in the prior year quarter.

•P&C combined ratio of 95.8%, compared with 100.0% in the prior year quarter, including 5.5 points of catastrophe loss impact compared with 9.2 points in the prior year quarter.

•Pretax catastrophe losses of $114 million, includes $87 million for Hurricane Ian, versus $178 million in the prior year quarter.

•Underlying combined ratio of 91.1% was consistent with the prior year quarter. The underlying loss ratio was 59.9% and the expense ratio was 30.8%.

•P&C segments, excluding third party captives, generated gross written premium growth of 9%, or 10% excluding currency fluctuations. Net written premium growth of 8% in the quarter, or 9% excluding currency fluctuations.

•P&C renewal premium change of +8%, with written rate of +5% and exposure change of +3%. Earned rate of +7% for the quarter.

•Book value per share of $29.88 was impacted by a decrease in AOCI reflecting the effect of higher interest rates on fixed income securities net unrealized gains and losses; book value per share excluding AOCI of $45.16, a 5% increase from year-end 2021 adjusting for $3.20 of dividends per share.

•Board of Directors declares regular quarterly cash dividend of $0.40 per share.

CHICAGO, October 31, 2022 --- CNA Financial Corporation (NYSE: CNA) today announced third quarter 2022 net income of $128 million, or $0.47 per share, versus $256 million, or $0.94 per share, in the prior year quarter. Net investment losses for the quarter were $85 million, which include losses from fixed income securities as a result of portfolio repositioning, and a $35 million non-economic loss related to the expected novation of a coinsurance agreement in our Life & Group segment and associated funds withheld embedded derivative. Net investment gains were $19 million in the prior year quarter.

Core income for the quarter was $213 million, or $0.78 per share, versus $237 million, or $0.87 per share, in the prior year quarter. Our Property & Casualty segments produced core income of $260 million for the third quarter of 2022, an increase of $43 million compared to the prior year quarter driven by an $85 million pretax increase in underwriting income and a $25 million pretax increase in investment income from fixed income securities, partially offset by a $67 million pretax decline in investment income from LPs and common stock. Property & Casualty segments, excluding third party captives, generated gross written premium growth of 9%, or 10% excluding currency fluctuations, and net written premium growth of 8%, or 9% excluding currency fluctuations, driven by retention of 85%, renewal premium change of +8% and new business growth of 12%.

Our Life & Group segment produced a core loss of $(22) million for the third quarter of 2022, a decrease of $63 million, versus core income of $41 million in the prior year quarter driven by lower investment income from LPs. Results for the third quarter of 2022 included a favorable impact of $30 million pretax from the annual claim reserve reviews versus a favorable impact of $40 million pretax from the annual long term care claim reserve review in the prior year quarter. There was no long term care unlocking event for active life reserves in the quarter and margin increased by $53 million to $125 million, as a result of the gross premium valuation.

Our Corporate & Other segment produced a core loss of $(25) million for the third quarter of 2022, largely consistent with the the prior year quarter.

CNA Financial declared a quarterly dividend of $0.40 per share, payable December 1, 2022 to stockholders of record on November 15, 2022.


	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
($ millions, except per share data)	2022		2021		2022		2021
Net income	$	128	$	256	$	646	$	936
Core income (a)	213		237		774		841

Net income per diluted share	$	0.47	$	0.94	$	2.37	$	3.43
Core income per diluted share	0.78		0.87		2.84		3.08


	September 30, 2022		December 31, 2021
Book value per share	$	29.88	$	47.20
Book value per share excluding AOCI		45.16		46.02

(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.

"We are very pleased with our results in the quarter against a backdrop of continued pressure on equity markets and elevated industry catastrophe losses. Core income of $213 million was down $24 million due to a decline in LPs and common stock, offset to a large extent by an increase in our underwriting gain and increased investment income from our fixed income portfolio.

The increased underwriting gain of $85 million was driven by a 4.2 point improvement in the all-in combined ratio to 95.8%. Our extensive re-underwriting over the last several years helped to mitigate our catastrophe losses this quarter which were $114 million pretax, down $64 million from last year. Hurricane Ian accounted for $87 million of the total. P&C gross written premium ex captives grew by 9% this quarter and 10% excluding currency fluctuations. Renewal premium change of 8% remained consistent with last quarter. Written rate increase and the portion of exposure that acts like rate remains above loss cost trends.

We had strong top-line and bottom-line performance in our P&C segments and we remain optimistic about our growth opportunities with continued strong pricing and terms and conditions," said Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.

Property & Casualty Operations


	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2022			2021			2022			2021
Gross written premiums ex. 3rd party captives	$	2,430		$	2,224		$	7,560		$	6,790
GWP ex. 3rd party captives change (% year over year)	9		%				11		%
Net written premiums	$	2,060		$	1,909		$	6,379		$	5,755
NWP change (% year over year)	8		%				11		%
Net investment income	$	230		$	271		$	692		$	872
Core income	260			217			898			831

Loss ratio excluding catastrophes and development	59.9		%	60.2		%	60.0		%	59.9		%
Effect of catastrophe impacts	5.5			9.2			2.8			6.3
Effect of development-related items	(0.8)			(0.3)			(0.9)			(0.4)
Loss ratio	64.6		%	69.1		%	61.9		%	65.8		%

Expense ratio	30.8		%	30.7		%	30.8		%	31.3		%

Combined ratio	95.8		%	100.0		%	93.0		%	97.4		%
Combined ratio excluding catastrophes and development	91.1		%	91.1		%	91.1		%	91.5		%

•The underlying combined ratio was consistent with the prior year quarter. The underlying loss ratio improved 0.3 points and the expense ratio increased 0.1 points as compared to the prior year quarter.

•The combined ratio improved 4.2 points as compared with the prior year quarter. Catastrophe losses were $114 million, or 5.5 points of the loss ratio in the quarter compared with $178 million, or 9.2 points of the loss ratio, for the prior year quarter. Catastrophe losses in the third quarter of 2022 include $87 million for Hurricane Ian. Favorable net prior period development improved the loss ratio by 0.8 points in the current quarter compared with 0.3 points of improvement in the prior year quarter.

•P&C segments, excluding third party captives, generated gross written premium growth of 9%, or 10% excluding currency fluctuations, and net written premium growth of 8%, or 9% excluding currency fluctuations.

Business Operating Highlights

Specialty


	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2022			2021			2022			2021
Gross written premiums ex. 3rd party captives	$	958		$	943		$	2,816		$	2,656
GWP ex. 3rd party captives change (% year over year)	2		%				6		%
Net written premiums	$	840		$	822		$	2,443		$	2,350
NWP change (% year over year)	2		%				4		%
Core income	$	161		$	173		$	485		$	531

Loss ratio excluding catastrophes and development	58.4		%	59.1		%	58.6		%	59.1		%
Effect of catastrophe impacts	0.2			0.4			0.1			0.4
Effect of development-related items	(1.9)			(1.8)			(1.4)			(1.7)
Loss ratio	56.7		%	57.7		%	57.3		%	57.8		%

Expense ratio	31.7		%	30.6		%	31.0		%	30.4		%

Combined ratio	88.7		%	88.2		%	88.5		%	88.3		%
Combined ratio excluding catastrophes and development	90.4		%	89.6		%	89.8		%	89.6		%

•The underlying combined ratio increased 0.8 points as compared with the prior year quarter. The expense ratio increased 1.1 points as compared with the prior year quarter driven by higher underwriting expenses. The underlying loss ratio improved 0.7 points as compared with the prior year quarter.

•The combined ratio increased 0.5 points as compared with the prior year quarter. Favorable net prior period development improved the loss ratio by 1.9 points in the quarter compared with 1.8 points of improvement in the prior year quarter.

•Gross written premiums, excluding third party captives, grew 2% and net written premiums grew 2% for the third quarter of 2022.

Commercial


	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2022			2021			2022			2021
Gross written premiums ex. 3rd party captives	$	1,184		$	1,005		$	3,711		$	3,176
GWP ex. 3rd party captives change (% year over year)	18		%				17		%
Net written premiums	$	962		$	831		$	3,097		$	2,622
NWP change (% year over year)	16		%				18		%
Core income	$	80		$	27		$	350		$	233

Loss ratio excluding catastrophes and development	61.5		%	61.5		%	61.5		%	60.8		%
Effect of catastrophe impacts	10.0			18.6			5.0			12.6
Effect of development-related items	—			0.5			(0.5)			0.6
Loss ratio	71.5		%	80.6		%	66.0		%	74.0		%

Expense ratio	29.9		%	30.4		%	30.1		%	31.4		%

Combined ratio	101.9		%	111.6		%	96.6		%	106.0		%
Combined ratio excluding catastrophes and development	91.9		%	92.5		%	92.1		%	92.8		%

•The underlying combined ratio improved 0.6 points as compared with the prior year quarter, reflecting the lowest underlying combined ratio on record. The expense ratio improved 0.5 points driven by net earned premium growth of 15%. The underlying loss ratio was consistent with the prior year quarter.

•The combined ratio improved 9.7 points as compared with the prior year quarter. Catastrophe losses were $103 million, or 10.0 points of the loss ratio in the third quarter of 2022 compared with $166 million, or 18.6 points of the loss ratio, for the prior year quarter. There was no impact on the loss ratio from net prior year development for the current quarter compared with 0.5 points of unfavorable development increasing the loss ratio in the prior year quarter.

•Gross written premiums, excluding third party captives, grew 18% and net written premiums grew 16% for the third quarter of 2022.

International


	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2022			2021			2022			2021
Gross written premiums	$	288		$	276		$	1,033		$	958
GWP change (% year over year)	4		%				8		%
Net written premiums	$	258		$	256		$	839		$	783
NWP change (% year over year)	1		%				7		%
Core income	$	19		$	17		$	63		$	67

Loss ratio excluding catastrophes and development	58.6		%	58.9		%	58.6		%	59.2		%
Effect of catastrophe impacts	4.1			3.4			2.7			2.0
Effect of development-related items	—			1.1			(0.6)			0.3
Loss ratio	62.7		%	63.4		%	60.7		%	61.5		%

Expense ratio	31.7		%	32.1		%	32.1		%	33.3		%

Combined ratio	94.4		%	95.5		%	92.8		%	94.8		%
Combined ratio excluding catastrophes and development	90.3		%	91.0		%	90.7		%	92.5		%

•The underlying combined ratio improved 0.7 points as compared with the prior year quarter driven by a 0.4 point improvement in the expense ratio and a 0.3 point improvement in the underlying loss ratio.

•The combined ratio improved 1.1 points as compared with the prior year quarter. Catastrophe losses were $10 million, or 4.1 points of the loss ratio in the third quarter of 2022 compared with $9 million, or 3.4 points of the loss ratio, for the prior year quarter. There was no net prior year development in the current quarter compared with 1.1 points of unfavorable development increasing the loss ratio in the prior year quarter.

•Excluding currency fluctuations, gross written premiums grew 12% and net written premiums grew 8% for the third quarter of 2022.

Life & Group


	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
($ millions)	2022		2021		2022		2021
Net earned premiums	$	118	$	123	$	356	$	369
Net investment income	187		240		600		724
Core (loss) income	(22)		41		7		120

Core results decreased $63 million for the third quarter of 2022 as compared with the prior year quarter primarily due to a $54 million pretax decline in net investment income from LPs.

Core loss for the third quarter of 2022 included a $30 million pretax favorable impact from the reduction in claim reserves from the annual claim reviews driven by the release of all remaining IBNR reserves established during 2020 and 2021 in response to the COVID-19 pandemic partially offset by an unfavorable impact from higher claim severity, including utilization and cost of care inflation, than anticipated in the reserve estimates. There was no long term care unlocking event for active life reserves in the quarter and margin increased by $53 million to $125 million, as a result of the gross premium valuation. Core income for the third quarter of 2021 included a $40 million pretax favorable impact from the reduction in long term care claim reserves from the annual claim reserve review.

Corporate & Other


	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
($ millions)	2022		2021		2022		2021
Net investment income	$	5	$	2	$	10	$	12
Insurance claims and policyholders' benefits	(13)		(6)		36		23
Interest expense	28		28		84		84
Core loss	(25)		(21)		(131)		(110)

Core loss increased $4 million for the third quarter of 2022 as compared with the prior year quarter.

Net Investment Income


	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
	2022		2021		2022		2021
Net investment income	$	422	$	513	$	1,302	$	1,608

Net investment income decreased $91 million as compared with the prior year quarter. The decrease was driven by a decline in income from LP and common stock investments, which lost (2.1)%, or $(44) million for the third quarter of 2022 compared with a return of 3.8%, or $77 million in the prior year quarter. The decrease was partially offset by a $28 million increase in income from fixed income securities.

Stockholders' Equity

Stockholders’ equity of $8.1 billion decreased 37% 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 $4.3 billion after-tax driven by a decrease in unrealized investment gains of $8.5 billion, partially offset by Shadow Adjustments of $3.1 billion and tax of $1.1 billion. Book value per share of $29.88 likewise decreased 37% from year-end 2021.

Book value per share ex AOCI of $45.16 increased 5% from year-end 2021 adjusting for $3.20 of dividends per share.

As of September 30, 2022, statutory capital and surplus for the Combined Continental Casualty Companies was $10,382 million.

About the Company

CNA is one of the largest U.S. commercial property and casualty insurance companies. Backed by more than 120 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 (866) 580-3963 (USA Toll Free) or +1 (786) 697-3501 (USA Local). 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 catastrophes and 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.

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. 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 the reserves of certain products within the Life & Group segment would result in a premium deficiency, or would impact the reserve balance if realized, a related increase in Insurance reserves is recorded, as a reduction of net unrealized gains (losses), net of tax, through Other comprehensive income (loss) (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 September 30				Results for the Nine Months Ended September 30
($ millions)	2022		2021		2022		2021
Net income	$	128	$	256	$	646	$	936
Less: Net investment gains (losses)	(85)		19		(128)		95
Core income	$	213	$	237	$	774	$	841

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 September 30				Results for the Nine Months Ended September 30
	2022		2021		2022		2021
Net income per diluted share	$	0.47	$	0.94	$	2.37	$	3.43
Less: Net investment (losses) gains	(0.31)		0.07		(0.47)		0.35
Core income per diluted share	$	0.78	$	0.87	$	2.84	$	3.08

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.


	September 30, 2022		December 31, 2021
Book value per share	$	29.88	$	47.20
Less: Per share impact of AOCI	(15.28)		1.18
Book value per share excluding AOCI	$	45.16	$	46.02

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 September 30						Results for the Nine Months Ended September 30
($ millions)	2022			2021			2022			2021
Annualized net income	$	511		$	1,022		$	861		$	1,248
Average stockholders' equity including AOCI (a)	8,803			12,666			10,451			12,686
Return on equity	5.8		%	8.1		%	8.2		%	9.8		%

Annualized core income	$	848		$	948		$	1,031		$	1,122
Average stockholders' equity excluding AOCI (a)	12,229			12,238			12,361			12,111
Core return on equity	6.9		%	7.7		%	8.3		%	9.3		%

(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 © 2022 CNA. All rights reserved.

# # #

CNA Financial Corporation

Supplemental Financial Information

September 30, 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.

Table of Contents


			Page
Consolidated Results
Statements of Operations			1
Components of Income (Loss), Per Share Data and Return on Equity			2
Selected Balance Sheet Data and Statements of Cash Flows Data			3
Results of Operations
Property & Casualty			4
Specialty			5
Commercial			6
International			7
Life & Group			8
Corporate & Other			9
Investment Information
Investment Summary - Consolidated			10
Investment Summary - Property & Casualty and Corporate & Other			11
Investment Summary - Life & Group			12
Investments - Fixed Maturity Securities by Credit Rating			13
Components of Net Investment Income			14
Net Investment Gains (Losses)			15
Other
Claim & Claim Adjustment Expense Reserve Rollforward			16
Life & Group Policyholder Reserves			17

Definitions and Presentation			18

Statements of Operations


Periods ended September 30	Three Months						Nine Months
(In millions)	2022		2021		Change		2022		2021		Change
Revenues:
Net earned premiums	$	2,221	$	2,059	8	%	$	6,435	$	6,056	6	%
Net investment income	422		513		(18)		1,302		1,608		(19)
Net investment (losses) gains	(96)		22				(166)		117
Non-insurance warranty revenue	399		357				1,173		1,054
Other revenues	11		8				24		19
Total revenues	2,957		2,959		—		8,768		8,854		(1)
Claims, Benefits and Expenses:
Insurance claims and policyholders' benefits	1,665		1,632				4,703		4,684
Amortization of deferred acquisition costs	383		368				1,101		1,084
Non-insurance warranty expense	371		330				1,092		973
Other operating expenses	346		287				1,001		874
Interest	28		28				84		85
Total claims, benefits and expenses	2,793		2,645		(6)		7,981		7,700		(4)
Income (loss) before income tax	164		314				787		1,154
Income tax (expense) benefit	(36)		(58)				(141)		(218)
Net income (loss)	$	128	$	256	(50)	%	$	646	$	936	(31)	%

Components of Income (Loss), Per Share Data and Return on Equity


Periods ended September 30	Three Months						Nine Months
(In millions, except per share data)	2022			2021			2022			2021
Components of Income (Loss)
Core income (loss)	$	213		$	237		$	774		$	841
Net investment gains (losses)	(85)			19			(128)			95
Net income (loss)	$	128		$	256		$	646		$	936

Diluted Earnings (Loss) Per Common Share
Core income (loss)	$	0.78		$	0.87		$	2.84		$	3.08
Net investment gains (losses)	(0.31)			0.07			(0.47)			0.35
Diluted earnings (loss) per share	$	0.47		$	0.94		$	2.37		$	3.43

Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic	271.4			271.7			271.7			271.8
Diluted	272.3			272.7			272.6			272.8

Return on Equity
Net income (loss) (1)	5.8		%	8.1		%	8.2		%	9.8		%
Core income (loss) (2)	6.9			7.7			8.3			9.3

(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.

Selected Balance Sheet Data and Statements of Cash Flows Data


(In millions, except per share data)	September 30, 2022		December 31, 2021
Total investments	$	42,137	$	50,328
Reinsurance receivables, net of allowance for uncollectible receivables	5,700		5,463
Total assets	60,215		66,639
Insurance reserves	41,349		43,171
Debt	2,780		2,779
Total liabilities	52,121		53,830
Accumulated other comprehensive income (loss) (1)	(4,139)		320
Total stockholders' equity	8,094		12,809

Book value per common share	$	29.88	$	47.20
Book value per common share excluding AOCI	$	45.16	$	46.02

Outstanding shares of common stock (in millions of shares)	270.9		271.4

Statutory capital and surplus - Combined Continental Casualty Companies (2)	$	10,382	$	11,321


Three Months Ended September 30	2022		2021
Net cash flows provided (used) by operating activities	$	737	$	669
Net cash flows provided (used) by investing activities	(641)		(395)
Net cash flows provided (used) by financing activities	(138)		(104)
Net cash flows provided (used) by operating, investing and financing activities	$	(42)	$	170


Nine Months Ended September 30	2022		2021
Net cash flows provided (used) by operating activities	$	1,990	$	1,354
Net cash flows provided (used) by investing activities	(1,072)		(597)
Net cash flows provided (used) by financing activities	(924)		(545)
Net cash flows provided (used) by operating, investing and financing activities	$	(6)	$	212

(1) As of September 30, 2022 and December 31, 2021, the net unrealized gains on investments included in AOCI were net of after-tax Shadow Adjustments of $46 million and $2,477 million. To the extent that unrealized gains on fixed income securities supporting the reserves of certain products within the Life & Group segment would result in a premium deficiency, or would impact the reserve balance if realized, a related increase in Insurance reserves is recorded, as a reduction of net unrealized gains (losses), net of tax, through Other comprehensive income (loss) (Shadow Adjustments).

(2) Statutory capital and surplus as of September 30, 2022 is preliminary.

Property & Casualty - Results of Operations


Periods ended September 30	Three Months								Nine Months
(In millions)	2022			2021			Change		2022			2021			Change
Gross written premiums	$	3,365		$	3,239		4	%	$	10,497		$	9,892		6	%
Gross written premiums ex. 3rd party captives	2,430			2,224			9		7,560			6,790			11
Net written premiums	2,060			1,909			8		6,379			5,755			11

Net earned premiums	2,103			1,937			9		6,080			5,688			7
Net investment income	230			271					692			872
Non-insurance warranty revenue	399			357					1,173			1,054
Other revenues	12			8					25			19
Total operating revenues	2,744			2,573			7		7,970			7,633			4
Insurance claims and policyholders' benefits	1,368			1,342					3,783			3,762
Amortization of deferred acquisition costs	383			368					1,101			1,084
Non-insurance warranty expense	371			330					1,092			973
Other insurance related expenses	268			228					771			694
Other expenses	29			25					86			60
Total claims, benefits and expenses	2,419			2,293			(5)		6,833			6,573			(4)
Core income (loss) before income tax	325			280					1,137			1,060
Income tax (expense) benefit on core income (loss)	(65)			(63)					(239)			(229)
Core income (loss)	$	260		$	217		20	%	$	898		$	831		8	%

Other Performance Metrics
Underwriting gain (loss)	$	84		$	(1)		N/M	%	$	425		$	148		187	%

Loss & LAE ratio	64.6		%	69.1		%	4.5	pts	61.9		%	65.8		%	3.9	pts
Expense ratio	30.8			30.7			(0.1)		30.8			31.3			0.5
Dividend ratio	0.4			0.2			(0.2)		0.3			0.3			—
Combined ratio	95.8		%	100.0		%	4.2	pts	93.0		%	97.4		%	4.4	pts
Combined ratio excluding catastrophes and development	91.1		%	91.1		%	—	pts	91.1		%	91.5		%	0.4	pts

Net accident year catastrophe losses incurred	$	114		$	178				$	171		$	357
Effect on loss & LAE ratio	5.5		%	9.2		%	3.7	pts	2.8		%	6.3		%	3.5	pts

Net prior year development and other: (favorable) / unfavorable	$	(15)		$	(5)				$	(56)		$	(17)
Effect on loss & LAE ratio	(0.8)		%	(0.3)		%	0.5	pts	(0.9)		%	(0.4)		%	0.5	pts

Rate	5		%	8		%	(3)	pts	6		%	10		%	(4)	pts
Renewal premium change	8		%	10		%	(2)	pts	8		%	11		%	(3)	pts
Retention	85		%	81		%	4	pts	85		%	82		%	3	pts
New business	$	455		$	405		12	%	$	1,406		$	1,189		18	%

Specialty - Results of Operations


Periods ended September 30	Three Months								Nine Months
(In millions)	2022			2021			Change		2022			2021			Change
Gross written premiums	$	1,890		$	1,953		(3)	%	$	5,640		$	5,650		—	%
Gross written premiums ex. 3rd party captives	958			943			2		2,816			2,656			6
Net written premiums	840			822			2		2,443			2,350			4

Net earned premiums	810			773			5		2,376			2,270			5
Net investment income	102			116					305			367
Non-insurance warranty revenue	399			357					1,173			1,054
Other revenues	(1)			1					—			1
Total operating revenues	1,310			1,247			5		3,854			3,692			4
Insurance claims and policyholders' benefits	461			446					1,365			1,314
Amortization of deferred acquisition costs	169			165					488			478
Non-insurance warranty expense	371			330					1,092			973
Other insurance related expenses	88			71					250			212
Other expenses	15			13					40			36
Total claims, benefits and expenses	1,104			1,025			(8)		3,235			3,013			(7)
Core income (loss) before income tax	206			222					619			679
Income tax (expense) benefit on core income (loss)	(45)			(49)					(134)			(148)
Core income (loss)	$	161		$	173		(7)	%	$	485		$	531		(9)	%

Other Performance Metrics
Underwriting gain (loss)	$	92		$	91		1	%	$	273		$	266		3	%

Loss & LAE ratio	56.7		%	57.7		%	1.0	pts	57.3		%	57.8		%	0.5	pts
Expense ratio	31.7			30.6			(1.1)		31.0			30.4			(0.6)
Dividend ratio	0.3			(0.1)			(0.4)		0.2			0.1			(0.1)
Combined ratio	88.7		%	88.2		%	(0.5)	pts	88.5		%	88.3		%	(0.2)	pts
Combined ratio excluding catastrophes and development	90.4		%	89.6		%	(0.8)	pts	89.8		%	89.6		%	(0.2)	pts

Net accident year catastrophe losses incurred	$	1		$	3				$	2		$	9
Effect on loss & LAE ratio	0.2		%	0.4		%	0.2	pts	0.1		%	0.4		%	0.3	pts

Net prior year development and other: (favorable) / unfavorable	$	(15)		$	(13)				$	(35)		$	(38)
Effect on loss & LAE ratio	(1.9)		%	(1.8)		%	0.1	pts	(1.4)		%	(1.7)		%	(0.3)	pts

Rate	5		%	10		%	(5)	pts	7		%	11		%	(4)	pts
Renewal premium change	6		%	11		%	(5)	pts	8		%	12		%	(4)	pts
Retention	87		%	80		%	7	pts	86		%	84		%	2	pts
New business	$	130		$	147		(12)	%	$	407		$	370		10	%

Commercial - Results of Operations


Periods ended September 30	Three Months								Nine Months
(In millions)	2022			2021			Change		2022			2021			Change
Gross written premiums	$	1,187		$	1,010		18	%	$	3,824		$	3,284		16	%
Gross written premiums ex. 3rd party captives	1,184			1,005			18		3,711			3,176			17
Net written premiums	962			831			16		3,097			2,622			18

Net earned premiums	1,023			893			15		2,901			2,629			10
Net investment income	112			141					343			463
Other revenues	13			7					25			17
Total operating revenues	1,148			1,041			10		3,269			3,109			5
Insurance claims and policyholders' benefits	738			725					1,931			1,963
Amortization of deferred acquisition costs	163			148					467			449
Other insurance related expenses	145			125					409			376
Other expenses	3			8					21			28
Total claims, benefits and expenses	1,049			1,006			(4)		2,828			2,816			—
Core income (loss) before income tax	99			35					441			293
Income tax (expense) benefit on core income (loss)	(19)			(8)					(91)			(60)
Core income (loss)	$	80		$	27		196	%	$	350		$	233		50	%

Other Performance Metrics
Underwriting gain (loss)	$	(23)		$	(105)		78	%	$	94		$	(159)		159	%

Loss & LAE ratio	71.5		%	80.6		%	9.1	pts	66.0		%	74.0		%	8.0	pts
Expense ratio	29.9			30.4			0.5		30.1			31.4			1.3
Dividend ratio	0.5			0.6			0.1		0.5			0.6			0.1
Combined ratio	101.9		%	111.6		%	9.7	pts	96.6		%	106.0		%	9.4	pts
Combined ratio excluding catastrophes and development	91.9		%	92.5		%	0.6	pts	92.1		%	92.8		%	0.7	pts

Net accident year catastrophe losses incurred	$	103		$	166				$	148		$	332
Effect on loss & LAE ratio	10.0		%	18.6		%	8.6	pts	5.0		%	12.6		%	7.6	pts

Net prior year development and other: (favorable) / unfavorable	$	—		$	5				$	(16)		$	19
Effect on loss & LAE ratio	—		%	0.5		%	0.5	pts	(0.5)		%	0.6		%	1.1	pts

Rate	4		%	6		%	(2)	pts	5		%	8		%	(3)	pts
Renewal premium change	8		%	9		%	(1)	pts	8		%	11		%	(3)	pts
Retention	84		%	83		%	1	pts	86		%	82		%	4	pts
New business	$	246		$	204		21	%	$	754		$	615		23	%

International - Results of Operations


Periods ended September 30	Three Months								Nine Months
(In millions)	2022			2021			Change		2022			2021			Change
Gross written premiums	$	288		$	276		4	%	$	1,033		$	958		8	%
Net written premiums	258			256			1		839			783			7

Net earned premiums	270			271			—		803			789			2
Net investment income	16			14					44			42
Other revenues	—			—					—			1
Total operating revenues	286			285			—		847			832			2
Insurance claims and policyholders' benefits	169			171					487			485
Amortization of deferred acquisition costs	51			55					146			157
Other insurance related expenses	35			32					112			106
Other expenses	11			4					25			(4)
Total claims, benefits and expenses	266			262			(2)		770			744			(3)
Core income (loss) before income tax	20			23					77			88
Income tax (expense) benefit on core income (loss)	(1)			(6)					(14)			(21)
Core income (loss)	$	19		$	17		12	%	$	63		$	67		(6)	%

Other Performance Metrics
Underwriting gain (loss)	$	15		$	13		15	%	$	58		$	41		41	%

Loss & LAE ratio	62.7		%	63.4		%	0.7	pts	60.7		%	61.5		%	0.8	pts
Expense ratio	31.7			32.1			0.4		32.1			33.3			1.2
Dividend ratio	—			—			—		—			—			—
Combined ratio	94.4		%	95.5		%	1.1	pts	92.8		%	94.8		%	2.0	pts
Combined ratio excluding catastrophes and development	90.3		%	91.0		%	0.7	pts	90.7		%	92.5		%	1.8	pts

Net accident year catastrophe losses incurred	$	10		$	9				$	21		$	16
Effect on loss & LAE ratio	4.1		%	3.4		%	(0.7)	pts	2.7		%	2.0		%	(0.7)	pts

Net prior year development and other: (favorable) / unfavorable	$	—		$	3				$	(5)		$	2
Effect on loss & LAE ratio	—		%	1.1		%	1.1	pts	(0.6)		%	0.3		%	0.9	pts

Rate	6		%	13		%	(7)	pts	7		%	14		%	(7)	pts
Renewal premium change	12		%	13		%	(1)	pts	11		%	13		%	(2)	pts
Retention	82		%	79		%	3	pts	79		%	77		%	2	pts
New business	$	79		$	54		46	%	$	245		$	204		20	%

Life & Group - Results of Operations


Periods ended September 30	Three Months				Nine Months
(In millions)	2022		2021		2022		2021
Net earned premiums	$	118	$	123	$	356	$	369
Net investment income	187		240		600		724
Other revenues	—		(1)		—		(1)
Total operating revenues	305		362		956		1,092
Insurance claims and policyholders' benefits	310		296		884		899
Other insurance related expenses	29		27		89		77
Other expenses	2		1		7		5
Total claims, benefits and expenses	341		324		980		981
Core income (loss) before income tax	(36)		38		(24)		111
Income tax (expense) benefit on core income (loss)	14		3		31		9
Core income (loss)	$	(22)	$	41	$	7	$	120

Corporate & Other - Results of Operations


Periods ended September 30	Three Months				Nine Months
(In millions)	2022		2021		2022		2021
Net earned premiums	$	—	$	(1)	$	(1)	$	(1)
Net investment income	5		2		10		12
Other revenues	(1)		1		(1)		1
Total operating revenues	4		2		8		12
Insurance claims and policyholders' benefits	(13)		(6)		36		23
Other insurance related expenses	—		(2)		3		8
Interest expense	28		28		84		84
Other expenses	18		8		45		31

Total claims, benefits and expenses	33		28		168		146
Core income (loss) before income tax	(29)		(26)		(160)		(134)
Income tax (expense) benefit on core income (loss)	4		5		29		24
Core income (loss)	$	(25)	$	(21)	$	(131)	$	(110)

Investment Summary - Consolidated


	September 30, 2022				June 30, 2022				December 31, 2021
(In millions)	Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	20,927	$	(2,167)	$	21,665	$	(941)	$	24,139	$	2,699
States, municipalities and political subdivisions:
Tax-exempt	4,632		(267)		5,635		88		7,781		1,119
Taxable	3,791		(554)		4,003		(272)		4,162		466
Total states, municipalities and political subdivisions	8,423		(821)		9,638		(184)		11,943		1,585
Asset-backed:
RMBS	2,689		(464)		2,743		(291)		2,956		63
CMBS	1,688		(233)		1,837		(158)		2,031		44
Other ABS	2,914		(347)		2,842		(216)		2,598		44
Total asset-backed	7,291		(1,044)		7,422		(665)		7,585		151
U.S. Treasury and obligations of government-sponsored enterprises	109		2		109		(6)		130		(2)
Foreign government	498		(46)		548		(29)		583		13
Redeemable preferred stock	3		—		3		—		—		—
Total fixed maturity securities	37,251		(4,076)		39,385		(1,825)		44,380		4,446
Equities:
Common stock	210		—		222		—		233		—
Non-redeemable preferred stock	681		—		676		—		802		—
Total equities	891		—		898		—		1,035		—
Limited partnership investments:
Hedge funds	464		—		465		—		595		—
Private equity funds	1,431		—		1,398		—		1,264		—
Total limited partnership investments	1,895		—		1,863		—		1,859		—

Other invested assets	73		—		71		—		91		—
Mortgage loans	953		—		949		—		973		—
Short term investments	1,074		1		1,114		1		1,990		—
Total investments	$	42,137	$	(4,075)	$	44,280	$	(1,824)	$	50,328	$	4,446

Net receivable/(payable) on investment activity	$	(14)			$	(134)			$	201

Effective duration (in years)	6.7				6.8				6.6
Weighted average rating	A				A				A

RMBS - Residential mortgage-backed securities

CMBS - Commercial mortgage-backed securities

Other ABS - Other asset-backed securities

Investment Summary - Property & Casualty and Corporate & Other


	September 30, 2022				June 30, 2022				December 31, 2021
(In millions)	Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	12,997	$	(1,458)	$	13,466	$	(934)	$	14,897	$	713
States, municipalities and political subdivisions:
Tax-exempt	1,275		(273)		1,397		(182)		1,604		92
Taxable	1,989		(484)		2,132		(343)		2,369		69
Total states, municipalities and political subdivisions	3,264		(757)		3,529		(525)		3,973		161
Asset-backed:
RMBS	2,669		(464)		2,714		(290)		2,899		60
CMBS	1,651		(231)		1,781		(156)		1,955		42
Other ABS	2,401		(266)		2,388		(175)		2,326		31
Total asset-backed	6,721		(961)		6,883		(621)		7,180		133
U.S. Treasury and obligations of government-sponsored enterprises	96		2		94		—		109		(2)
Foreign government	472		(35)		520		(21)		545		11
Redeemable preferred stock	3		—		3		—		—		—
Total fixed maturity securities	23,553		(3,209)		24,495		(2,101)		26,704		1,016
Equities:
Common stock	210		—		222		—		233		—
Non-redeemable preferred stock	140		—		144		—		179		—
Total equities	350		—		366		—		412		—
Limited partnership investments:
Hedge funds	257		—		257		—		329		—
Private equity funds	792		—		774		—		700		—
Total limited partnership investments	1,049		—		1,031		—		1,029		—
Other invested assets	73		—		71		—		91		—
Mortgage loans	729		—		729		—		741		—
Short term investments	1,048		1		1,067		1		1,887		—
Total investments	$	26,802	$	(3,208)	$	27,759	$	(2,100)	$	30,864	$	1,016

Net receivable/(payable) on investment activity	$	(2)			$	(98)			$	145

Effective duration (in years)	4.8				5.0				4.9
Weighted average rating	A-				A				A

Investment Summary - Life & Group


	September 30, 2022				June 30, 2022				December 31, 2021
(In millions)	Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	7,930	$	(709)	$	8,199	$	(7)	$	9,242	$	1,986
States, municipalities and political subdivisions:
Tax-exempt	3,357		6		4,238		270		6,177		1,027
Taxable	1,802		(70)		1,871		71		1,793		397
Total states, municipalities and political subdivisions	5,159		(64)		6,109		341		7,970		1,424
Asset-backed:
RMBS	20		—		29		(1)		57		3
CMBS	37		(2)		56		(2)		76		2
Other ABS	513		(81)		454		(41)		272		13
Total asset-backed	570		(83)		539		(44)		405		18
U.S. Treasury and obligations of government-sponsored enterprises	13		—		15		(6)		21		—
Foreign government	26		(11)		28		(8)		38		2
Redeemable preferred stock	—		—		—		—		—		—
Total fixed maturity securities	13,698		(867)		14,890		276		17,676		3,430
Equities:
Common stock	—		—		—		—		—		—
Non-redeemable preferred stock	541		—		532		—		623		—
Total equities	541		—		532		—		623		—
Limited partnership investments:
Hedge funds	207		—		208		—		266		—
Private equity funds	639		—		624		—		564		—
Total limited partnership investments	846		—		832		—		830		—
Other invested assets	—		—		—		—		—		—
Mortgage loans	224		—		220		—		232		—
Short term investments	26		—		47		—		103		—
Total investments	$	15,335	$	(867)	$	16,521	$	276	$	19,464	$	3,430

Net receivable/(payable) on investment activity	$	(12)			$	(36)			$	56

Effective duration (in years)	9.8				9.7				9.2
Weighted average rating	A				A				A

Investments - Fixed Maturity Securities by Credit Rating


September 30, 2022	U.S. Government, Government agencies and Government-sponsored enterprises					AAA					AA					A					BBB					Non-investment grade					Total
(In millions)	Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)
Corporate and other bonds	$	—		$	—	$	27		$	(3)	$	413		$	(42)	$	5,342		$	(430)	$	13,465		$	(1,496)	$	1,680		$	(196)	$	20,927		$	(2,167)
States, municipalities and political subdivisions	—			—		1,394			(80)		4,833			(577)		1,902			(82)		293			(82)		1			—		8,423			(821)
Asset-backed:
RMBS	2,342			(359)		251			(109)		5			—		13			—		20			—		58			4		2,689			(464)
CMBS	1			—		304			(30)		689			(107)		232			(33)		334			(47)		128			(16)		1,688			(233)
Other ABS	—			—		263			(23)		186			(45)		1,174			(105)		1,129			(148)		162			(26)		2,914			(347)
Total asset-backed	2,343			(359)		818			(162)		880			(152)		1,419			(138)		1,483			(195)		348			(38)		7,291			(1,044)
U.S. Treasury and obligations of government-sponsored enterprises	109			2		—			—		—			—		—			—		—			—		—			—		109			2
Foreign government	—			—		135			(5)		261			(21)		76			(17)		26			(3)		—			—		498			(46)
Redeemable preferred stock	—			—		—			—		—			—		—			—		—			—		3			—		3			—
Total fixed maturity securities	$	2,452		$	(357)	$	2,374		$	(250)	$	6,387		$	(792)	$	8,739		$	(667)	$	15,267		$	(1,776)	$	2,032		$	(234)	$	37,251		$	(4,076)

Percentage of total fixed maturity securities	7		%			6		%			17		%			24		%			41		%			5		%			100		%

Components of Net Investment Income


Periods ended September 30	Consolidated
	Three Months						Nine Months
(In millions)	2022			2021			2022			2021
Taxable fixed income securities	$	410		$	360		$	1,163		$	1,075
Tax-exempt fixed income securities	55			77			194			236
Total fixed income securities	465			437			1,357			1,311
Common stock	(9)			(8)			(40)			20
Limited partnerships - hedge funds	1			(14)			(44)			35
Limited partnerships - private equity funds	(36)			99			33			239
Total limited partnership and common stock investments	(44)			77			(51)			294
Other, net of investment expense	1			(1)			(4)			3
Net investment income	$	422		$	513		$	1,302		$	1,608

Effective income yield for fixed income securities portfolio	4.4		%	4.3		%	4.3		%	4.3		%
Limited partnership and common stock return	(2.1)			3.8			(2.4)			16.4


	Property & Casualty and Corporate & Other
Periods ended September 30
	Three Months						Nine Months
(In millions)	2022			2021			2022			2021
Taxable fixed income securities	$	247		$	221		$	709		$	666
Tax-exempt fixed income securities	11			12			34			37
Total fixed income securities	258			233			743			703
Common stock	(9)			(8)			(40)			20
Limited partnerships - hedge funds	1			(8)			(24)			19
Limited partnerships - private equity funds	(20)			55			18			133
Total limited partnership and common stock investments	(28)			39			(46)			172
Other, net of investment expense	5			1			5			9
Net investment income	$	235		$	273		$	702		$	884

Effective income yield for fixed income securities portfolio	3.8		%	3.6		%	3.7		%	3.7		%


Periods ended September 30	Life & Group
	Three Months						Nine Months
(In millions)	2022			2021			2022			2021
Taxable fixed income securities	$	163		$	139		$	454		$	409
Tax-exempt fixed income securities	44			65			160			199
Total fixed income securities	207			204			614			608
Common stock	—			—			—			—
Limited partnerships - hedge funds	—			(6)			(20)			16
Limited partnerships - private equity funds	(16)			44			15			106
Total limited partnership and common stock investments	(16)			38			(5)			122
Other, net of investment expense	(4)			(2)			(9)			(6)
Net investment income	$	187		$	240		$	600		$	724

Effective income yield for fixed income securities portfolio	5.5		%	5.5		%	5.4		%	5.5		%

Net Investment Gains (Losses)


Periods ended September 30	Consolidated
	Three Months				Nine Months
(In millions)	2022		2021		2022		2021
Fixed maturity securities: (1)
Corporate and other bonds	$	(41)	$	36	$	(68)	$	115
States, municipalities and political subdivisions	6		1		28		—
Asset-backed	(17)		(15)		(29)		(24)
Total fixed maturity securities	(52)		22		(69)		91
Non-redeemable preferred stock	(2)		(2)		(111)		17
Derivatives, short term and other	(34)		2		22		9
Mortgage loans	(8)		—		(8)		—
Net investment (losses) gains	(96)		22		(166)		117
Income tax benefit (expense) on net investment (losses) gains	11		(3)		38		(22)
Net investment (losses) gains, after tax	$	(85)	$	19	$	(128)	$	95

(1) Excludes the loss in the third quarter of 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 three months ended September 30, 2022 includes a $35 million non-economic net loss related to the expected novation of a coinsurance agreement on the Company's legacy annuity business in the Life & Group segment and the associated funds withheld embedded derivative.

Claim & Claim Adjustment Expense Reserve Rollforward


Three months ended September 30, 2022 (In millions)	Specialty		Commercial		International		P&C Operations		Life & Group		Corporate & Other		Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	6,861	$	8,954	$	2,307	$	18,122	$	3,670	$	2,767	$	24,559
Ceded	1,449		814		358		2,621		111		2,424		5,156
Net	5,412		8,140		1,949		15,501		3,559		343		19,403

Net incurred claim & claim adjustment expenses	459		732		169		1,360		266		4		1,630
Net claim & claim adjustment expense payments	(385)		(565)		(112)		(1,062)		(250)		(7)		(1,319)
Foreign currency translation adjustment and other	(1)		(2)		(122)		(125)		(36)		—		(161)

Claim & claim adjustment expense reserves, end of period
Net	5,485		8,305		1,884		15,674		3,539		340		19,553
Ceded	1,440		867		378		2,685		106		2,356		5,147
Gross	$	6,925	$	9,172	$	2,262	$	18,359	$	3,645	$	2,696	$	24,700


Nine months ended September 30, 2022 (In millions)	Specialty		Commercial		International		P&C Operations		Life & 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
Ceded	1,168		825		340		2,333		113		2,523		4,969
Net	5,265		8,065		1,940		15,270		3,641		294		19,205


Net incurred claim & claim adjustment expenses	1,360		1,915		487		3,762		787		76		4,625
Net claim & claim adjustment expense payments	(1,139)		(1,673)		(304)		(3,116)		(748)		(30)		(3,894)
Foreign currency translation adjustment and other	(1)		(2)		(239)		(242)		(141)		—		(383)

Claim & claim adjustment expense reserves, end of period
Net	5,485		8,305		1,884		15,674		3,539		340		19,553
Ceded	1,440		867		378		2,685		106		2,356		5,147
Gross	$	6,925	$	9,172	$	2,262	$	18,359	$	3,645	$	2,696	$	24,700

Life & Group Policyholder Reserves


September 30, 2022
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,959	$	10,109	$	13,068
Structured settlement annuities and other	521		—		521
Total	3,480		10,109		13,589
Shadow adjustments	59		—		59
Ceded reserves	106		346		452
Total gross reserves	$	3,645	$	10,455	$	14,100


December 31, 2021
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,905	$	10,012	$	12,917
Structured settlement annuities and other	536		—		536
Total	3,441		10,012		13,453
Shadow adjustments	200		2,936		3,136
Ceded reserves	113		288		401
Total gross reserves	$	3,754	$	13,236	$	16,990

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, 2021 Form 10-K for further discussion of this non-GAAP financial measure.

•Management uses underwriting results to monitor insurance operations. Underwriting results are pretax and are 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.

•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


Exhibit No.						Description
99.1						CNA Financial Corporation press release, issued October 31, 2022, providing information on the third quarter 2022 results of operations.

99.2						CNA Financial Corporation financial supplement, posted on its website October 31, 2022, providing supplemental financial information on the third quarter 2022.

104						Cover Page Interactive Data File (embedded within the Inline XBRL document)


		CNA Financial Corporation
		(Registrant)

Date: October 31, 2022	By	/s/ Scott R. Lindquist
		(Signature)
		Scott R. Lindquist Executive Vice President and Chief Financial Officer


NOT APPLICABLE
(Former name or former address, if changed since last report.)


(Exact name of registrant as specified in its charter)