cna-20211101

FOR IMMEDIATE RELEASE

CNA FINANCIAL ANNOUNCES THIRD QUARTER 2021

NET INCOME OF $0.94 PER SHARE AND CORE INCOME OF $0.87 PER SHARE

•Net income was $256 million versus $213 million in the prior year quarter; core income was $237 million versus $193 million in the prior year quarter.

•The P&C combined ratio was 100.0% compared with 100.9% in the prior year quarter, including 9.2 points of catastrophe loss compared with 8.7 points in the prior year quarter.

•Net catastrophe losses were $178 million pretax versus $160 million in the prior year quarter. Net catastrophe losses in the current quarter include $114 million for Hurricane Ida.

•The underlying combined ratio was 91.1%, a record low for the third consecutive quarter, compared with 92.6% in the prior year quarter. The underlying loss ratio was 60.2% compared with 60.5% in the prior year quarter and the expense ratio was 30.7% compared with 31.8% in the prior year quarter.

•P&C segments, excluding third party captives, generated gross written premium growth of 10% driven by new business growth of 24%. Net written premium growth was 5% in the quarter.

•P&C written rate of +8% and earned rate of +11% for the quarter.

•Net investment income of $513 million pretax compared with $517 million in the prior year quarter.

•In Long Term Care, there was no unlocking event as a result of the Gross Premium Valuation and core income includes a favorable impact of $31 million resulting from the annual claim reserve review.

•Book value per share of $46.67; book value per share excluding AOCI of $45.39, an 8% increase from year-end 2020 adjusting for $1.89 of dividends per share.

•Board of Directors declares regular quarterly cash dividend of $0.38 per share.

CHICAGO, November 1, 2021 --- CNA Financial Corporation (NYSE: CNA) today announced third quarter 2021 net income of $256 million, or $0.94 per share, versus $213 million, or $0.79 per share, in the prior year quarter. Core income for the quarter was $237 million, or $0.87 per share, versus $193 million, or $0.71 per share, in the prior year quarter.

Our Property & Casualty segments produced core income of $217 million for the third quarter of 2021, a decrease of $19 million compared to the prior year quarter primarily due to higher net catastrophe losses and lower net investment income partially offset by improved non-catastrophe current accident year underwriting results. The underlying combined ratio of 91.1% for the third quarter 2021 is the third consecutive quarter with a record underlying combined ratio. Property & Casualty segments, excluding third party captives, generated gross written premium growth of 10% and net written premium growth of 5%, led by new business growth of 24% and strong written rate increases of 8%.

Our Life & Group and Corporate & Other segments produced core income (loss) for the third quarter of 2021 of $41 million and $(21) million, respectively. Life & Group results for the third quarter included no unlocking event for active life reserves and a $31 million after-tax benefit due to a reduction in claim reserves from the annual claim reviews.

CNA Financial declared a quarterly dividend of $0.38 per share, payable December 2, 2021 to stockholders of record on November 15, 2021.


	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
($ millions, except per share data)	2021		2020		2021		2020
Net income	$	256	$	213	$	936	$	303
Core income (a)	237		193		841		400

Net income per diluted share	$	0.94	$	0.79	$	3.43	$	1.11
Core income per diluted share	0.87		0.71		3.08		1.47


	September 30, 2021		December 31, 2020
Book value per share	$	46.67	$	46.82
Book value per share excluding AOCI		45.39		43.86

(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.

"Our third quarter results were very strong, with core income increasing by 23% despite the elevated catastrophe losses. Our results were highlighted by the third consecutive quarter of record underlying combined ratio of 91.1%, double-digit gross written premium growth across all of our P&C business segments and excellent new business growth of 24%. Additionally, earned rate increase in the quarter was 11%, substantially above long-run loss cost trends, and we continue to achieve strong written rate increases which were 8% in the quarter. We also recorded solid investment income and favorable life and group results. We are well positioned to increasingly capitalize on the favorable market conditions we anticipate into 2022,” 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)	2021			2020			2021			2020
Gross written premiums ex. 3rd party captives	$	2,224		$	2,014		$	6,790		$	6,253
GWP ex. 3rd party captives change (% year over year)	10		%				9		%
Net written premiums	$	1,909		$	1,821		$	5,755		$	5,614
NWP change (% year over year)	5		%				3		%
Net investment income	$	271		$	292		$	872		$	713
Core income	217			236			831			482

Loss ratio excluding catastrophes and development	60.2		%	60.5		%	59.9		%	59.9		%
Effect of catastrophe impacts	9.2			8.7			6.3			10.1
Effect of development-related items	(0.3)			(0.4)			(0.4)			(0.8)
Loss ratio	69.1		%	68.8		%	65.8		%	69.2		%

Expense ratio	30.7		%	31.8		%	31.3		%	32.9		%

Combined ratio	100.0		%	100.9		%	97.4		%	102.4		%
Combined ratio excluding catastrophes and development	91.1		%	92.6		%	91.5		%	93.1		%

•The combined ratio excluding catastrophes and development improved 1.5 points as compared with the prior year quarter. The expense ratio improved 1.1 points compared to the prior year quarter driven by net earned premium growth of 6%. The underlying loss ratio improved 0.3 points.

•The combined ratio improved 0.9 points as compared with the prior year quarter. Net catastrophe losses were $178 million, or 9.2 points of the loss ratio in the quarter compared with $160 million, or 8.7 points of the loss ratio, for the prior year quarter. Catastrophe losses in the third quarter of 2021 include $114 million for Hurricane Ida. Favorable net prior period development improved the loss ratio by 0.3 points in the current quarter compared with 0.4 points of improvement in the prior year quarter.

•P&C segments, excluding third party captives, generated gross written premium growth of 10% and net written premium growth of 5%.

Business Operating Highlights

Specialty


	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2021			2020			2021			2020
Gross written premiums ex. 3rd party captives	$	943		$	861		$	2,656		$	2,413
GWP ex. 3rd party captives change (% year over year)	10		%				10		%
Net written premiums	$	822		$	795		$	2,350		$	2,231
NWP change (% year over year)	3		%				5		%
Core income	$	173		$	168		$	531		$	354

Loss ratio excluding catastrophes and development	59.1		%	60.0		%	59.1		%	59.8		%
Effect of catastrophe impacts	0.4			1.0			0.4			5.7
Effect of development-related items	(1.8)			(2.0)			(1.7)			(2.1)
Loss ratio	57.7		%	59.0		%	57.8		%	63.4		%

Expense ratio	30.6		%	30.5		%	30.4		%	31.5		%

Combined ratio	88.2		%	89.5		%	88.3		%	95.0		%
Combined ratio excluding catastrophes and development	89.6		%	90.5		%	89.6		%	91.4		%

•The combined ratio excluding catastrophes and development improved 0.9 points as compared with the prior year quarter largely driven by an improvement in the underlying loss ratio.

•The combined ratio improved by 1.3 points as compared with the prior year quarter. Favorable net prior period development improved the loss ratio by 1.8 points in the quarter compared with 2.0 points of improvement in the prior year quarter.

•Gross written premiums, excluding third party captives, grew 10% and net written premiums grew 3% for the third quarter of 2021.

Commercial


	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2021			2020			2021			2020
Gross written premiums ex. 3rd party captives	$	1,005		$	915		$	3,176		$	3,018
GWP ex. 3rd party captives change (% year over year)	10		%				5		%
Net written premiums	$	831		$	804		$	2,622		$	2,703
NWP change (% year over year)	3		%				(3)		%
Core income	$	27		$	41		$	233		$	113

Loss ratio excluding catastrophes and development	61.5		%	60.8		%	60.8		%	60.1		%
Effect of catastrophe impacts	18.6			17.0			12.6			14.3
Effect of development-related items	0.5			0.6			0.6			0.1
Loss ratio	80.6		%	78.4		%	74.0		%	74.5		%

Expense ratio	30.4		%	32.3		%	31.4		%	33.2		%

Combined ratio	111.6		%	111.3		%	106.0		%	108.3		%
Combined ratio excluding catastrophes and development	92.5		%	93.7		%	92.8		%	93.9		%

•The combined ratio excluding catastrophes and development improved 1.2 points as compared with the prior year quarter. The expense ratio improved 1.9 points driven primarily by net earned premium growth of 4% and lower acquisition costs. This was partially offset by a 0.7 point increase in the underlying loss ratio.

•The combined ratio increased 0.3 points as compared with the prior year quarter. Net catastrophe losses were $166 million, or 18.6 points of the loss ratio in the third quarter of 2021 compared with $146 million, or 17.0 points of the loss ratio, for the prior year quarter.

•Gross written premiums, excluding third party captives, grew 10% and net written premiums grew 3% for the third quarter of 2021.

International


	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2021			2020			2021			2020
Gross written premiums	$	276		$	238		$	958		$	822
GWP change (% year over year)	16		%				17		%
Net written premiums	$	256		$	222		$	783		$	680
NWP change (% year over year)	15		%				15		%
Core income	$	17		$	27		$	67		$	15

Loss ratio excluding catastrophes and development	58.9		%	60.1		%	59.2		%	60.1		%
Effect of catastrophe impacts	3.4			3.0			2.0			8.9
Effect of development-related items	1.1			0.1			0.3			(0.4)
Loss ratio	63.4		%	63.2		%	61.5		%	68.6		%

Expense ratio	32.1		%	34.9		%	33.3		%	35.6		%

Combined ratio	95.5		%	98.1		%	94.8		%	104.2		%
Combined ratio excluding catastrophes and development	91.0		%	95.0		%	92.5		%	95.7		%

•The combined ratio excluding catastrophes and development improved 4.0 points as compared with the prior year quarter. The expense ratio improved 2.8 points driven by net earned premium growth of 15% and lower acquisition costs. The underlying loss ratio improved 1.2 points.

•The combined ratio improved 2.6 points as compared with the prior year quarter. Net catastrophe losses were $9 million, or 3.4 points of the loss ratio in the third quarter of 2021, compared with $7 million, or 3.0 points of the loss ratio, for the prior year quarter. Unfavorable net prior year development increased the loss ratio by 1.1 points in the quarter compared with 0.1 points in the prior year quarter.

•Gross written premiums grew 16%, or 11% excluding currency fluctuations, and net written premiums grew 15%, or 10% excluding currency fluctuations, for the third quarter of 2021.

Life & Group


	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
($ millions)	2021		2020		2021		2020
Net earned premiums	$	123	$	127	$	369	$	380
Net investment income	240		208		724		622
Core income (loss)	41		(35)		120		(17)

Core results improved $76 million for the third quarter of 2021 as compared with the prior year quarter.

In Long Term Care, there was no unlocking event in the quarter for active life reserves as a result of the Gross Premium Valuation. Core income for the third quarter of 2021 included a $31 million favorable impact from the reduction in long term care claim reserves resulting from the annual claim reserve review. Core loss for the third quarter of 2020 included a $59 million charge related to the recognition of an active life reserve premium deficiency for long term care policies. The results for the third quarter of 2020 also included a $36 million charge related to the increase in the structured settlement claim reserves partially offset by a $30 million impact from the reduction in long term care claim reserves, both resulting from the annual claim reserve reviews.

Corporate & Other


	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
($ millions)	2021		2020		2021		2020
Net investment income	$	2	$	17	$	12	$	45
Interest expense	28		32		84		94
Core loss	(21)		(8)		(110)		(65)

Core loss increased $13 million for the third quarter of 2021 as compared with the prior year quarter primarily driven by lower net investment income.

Net Investment Income


	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
	2021		2020		2021		2020
Net investment income	$	513	$	517	$	1,608	$	1,380

Net investment income decreased $4 million as compared with the prior year quarter.

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:
Chris Stroisch, 309-660-6001						Amy C. Adams, 312-822-5533

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, Larry Haefner, Interim Chief Financial Officer of CNA Financial Corporation and other members of senior management. Participants can access the call by dialing (800) 289-0571, or for international callers, +1 (720) 543-0206. 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 and services to small, middle-market and large businesses.

•International underwrites property and casualty coverages on a global basis through two insurance companies based in the U.K. and Luxembourg, a branch operation in Canada as well as through 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 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 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.

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.

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)	2021		2020		2021		2020
Net income	$	256	$	213	$	936	$	303
Less: Net investment gains (losses)	19		20		95		(97)
Core income	$	237	$	193	$	841	$	400

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
	2021		2020		2021		2020
Net income per diluted share	$	0.94	$	0.79	$	3.43	$	1.11
Less: Net investment gains (losses)	0.07		0.08		0.35		(0.36)
Core income per diluted share	$	0.87	$	0.71	$	3.08	$	1.47

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, 2021		December 31, 2020
Book value per share	$	46.67	$	46.82
Less: Per share impact of AOCI	1.28		2.96
Book value per share excluding AOCI	$	45.39	$	43.86

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)	2021			2020			2021			2020
Annualized net income	$	1,022		$	855		$	1,248		$	405
Average stockholders' equity including AOCI (a)	12,666			11,833			12,686			12,118
Return on equity	8.1		%	7.2		%	9.8		%	3.3		%

Annualized core income	$	948		$	772		$	1,122		$	533
Average stockholders' equity excluding AOCI (a)	12,238			11,550			12,111			11,887
Core return on equity	7.7		%	6.7		%	9.3		%	4.5		%

(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 © 2021 CNA. All rights reserved.

# # #

CNA Financial Corporation

Supplemental Financial Information

September 30, 2021

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 Statem ent s 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
Other
Claim & Claim Adjustment Expense Reserve Rollforward			15
Life & Group Policyholder Reserves			16

Definitions and Presentation			17

Statements of Operations


Periods ended September 30	Three Months						Nine Months
(In millions)	2021		2020		Change		2021		2020		Change
Revenues:
Net earned premiums	$	2,059	$	1,953	5	%	$	6,056	$	5,672	7	%
Net investment income	513		517		(1)		1,608		1,380		17
Net investment gains (losses)	22		27				117		(120)
Non-insurance warranty revenue	357		317				1,054		926
Other revenues	8		6				19		19
Total revenues	2,959		2,820		5		8,854		7,877		12
Claims, Benefits and Expenses:
Insurance claims and policyholders' benefits	1,632		1,616				4,684		4,683
Amortization of deferred acquisition costs	368		360				1,084		1,046
Non-insurance warranty expense	330		293				973		859
Other operating expenses	287		269				874		852
Interest	28		32				85		94
Total claims, benefits and expenses	2,645		2,570		(3)		7,700		7,534		(2)
Income (loss) before income tax	314		250				1,154		343
Income tax (expense) benefit	(58)		(37)				(218)		(40)
Net income (loss)	$	256	$	213	20	%	$	936	$	303	N/M	%

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)	2021			2020			2021			2020
Components of Income (Loss)
Core income (loss)	$	237		$	193		$	841		$	400
Net investment gains (losses)	19			20			95			(97)
Net income (loss)	$	256		$	213		$	936		$	303

Diluted Earnings (Loss) Per Common Share
Core income (loss)	$	0.87		$	0.71		$	3.08		$	1.47
Net investment gains (losses)	0.07			0.08			0.35			(0.36)
Diluted earnings (loss) per share	$	0.94		$	0.79		$	3.43		$	1.11

Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic	271.7			271.7			271.8			271.6
Diluted	272.7			272.3			272.8			272.3

Return on Equity
Net income (loss) (1)	8.1		%	7.2		%	9.8		%	3.3		%
Core income (loss) (2)	7.7			6.7			9.3			4.5

(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 Statement of Cash Flows Data


(In millions, except per share data)	September 30, 2021		December 31, 2020
Total investments	$	50,236	$	50,293
Reinsurance receivables, net of allowance for uncollectible receivables	5,328		4,457
Total assets	66,522		64,026
Insurance reserves	42,607		41,143
Debt	2,778		2,776
Total liabilities	53,858		51,319
Accumulated other comprehensive income (loss) (1)	346		803
Total stockholders' equity	12,664		12,707

Book value per common share	$	46.67	$	46.82
Book value per common share excluding AOCI	$	45.39	$	43.86

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

Statutory capital and surplus - Combined Continental Casualty Companies (2)	$	11,098	$	10,708


Three Months Ended September 30	2021		2020
Net cash flows provided (used) by operating activities	$	669	$	758
Net cash flows provided (used) by investing activities	(395)		(882)
Net cash flows provided (used) by financing activities	(104)		(25)
Net cash flows provided (used) by operating, investing and financing activities	$	170	$	(149)


Nine Months Ended September 30	2021		2020
Net cash flows provided (used) by operating activities	$	1,354	$	1,408
Net cash flows provided (used) by investing activities	(597)		(407)
Net cash flows provided (used) by financing activities	(545)		(801)
Net cash flows provided (used) by operating, investing and financing activities	$	212	$	200

(1) As of September 30, 2021 and December 31, 2020, the net unrealized gains on investments included in AOCI were net of after-tax Shadow Adjustments of $2,481 million and $2,773 million. To the extent that unrealized gains on fixed income securities supporting certain products within the Life & Group segment would result in a premium deficiency if realized, an increase in Insurance reserves are recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (loss) (Shadow Adjustments).

(2) Statutory capital and surplus as of September 30, 2021 is preliminary.

Property & Casualty - Results of Operations


Periods ended September 30	Three Months								Nine Months
(In millions)	2021			2020			Change		2021			2020			Change
Gross written premiums	$	3,239		$	3,008		8	%	$	9,892		$	9,256		7	%
Gross written premiums ex. 3rd party captives	2,224			2,014			10		6,790			6,253			9
Net written premiums	1,909			1,821			5		5,755			5,614			3

Net earned premiums	1,937			1,827			6		5,688			5,293			7
Net investment income	271			292					872			713
Non-insurance warranty revenue	357			317					1,054			926
Other revenues	8			5					19			19
Total operating revenues	2,573			2,441			5		7,633			6,951			10
Insurance claims and policyholders' benefits	1,342			1,259					3,762			3,683
Amortization of deferred acquisition costs	368			360					1,084			1,046
Non-insurance warranty expense	330			293					973			859
Other insurance related expenses	228			225					694			693
Other expenses	25			13					60			65
Total claims, benefits and expenses	2,293			2,150			(7)		6,573			6,346			(4)
Core income (loss) before income tax	280			291					1,060			605
Income tax (expense) benefit on core income (loss)	(63)			(55)					(229)			(123)
Core income (loss)	$	217		$	236		(8)	%	$	831		$	482		72	%

Other Performance Metrics
Underwriting gain (loss)	$	(1)		$	(17)		94	%	$	148		$	(129)		N/M	%

Loss & LAE ratio	69.1		%	68.8		%	(0.3)	pts	65.8		%	69.2		%	3.4	pts
Expense ratio	30.7			31.8			1.1		31.3			32.9			1.6
Dividend ratio	0.2			0.3			0.1		0.3			0.3			—
Combined ratio	100.0		%	100.9		%	0.9	pts	97.4		%	102.4		%	5.0	pts
Combined ratio excluding catastrophes and development	91.1		%	92.6		%	1.5	pts	91.5		%	93.1		%	1.6	pts

Net accident year catastrophe losses incurred	$	178		$	160				$	357		$	536
Effect on loss & LAE ratio	9.2		%	8.7		%	(0.5)	pts	6.3		%	10.1		%	3.8	pts

Net prior year development and other: (favorable) / unfavorable	$	(5)		$	(8)				$	(17)		$	(44)
Effect on loss & LAE ratio	(0.3)		%	(0.4)		%	(0.1)	pts	(0.4)		%	(0.8)		%	(0.4)	pts

Rate	8		%	12		%	(4)	pts	10		%	11		%	(1)	pts
Renewal premium change	9		%	12		%	(3)	pts	10		%	11		%	(1)	pts
Retention	81		%	82		%	(1)	pts	82		%	83		%	(1)	pts
New business	$	405		$	327		24	%	$	1,189		$	1,023		16	%

Specialty - Results of Operations


Periods ended September 30	Three Months								Nine Months
(In millions)	2021			2020			Change		2021			2020			Change
Gross written premiums	$	1,953		$	1,855		5	%	$	5,650		$	5,331		6	%
Gross written premiums ex. 3rd party captives	943			861			10		2,656			2,413			10
Net written premiums	822			795			3		2,350			2,231			5

Net earned premiums	773			734			5		2,270			2,124			7
Net investment income	116			126					367			315
Non-insurance warranty revenue	357			317					1,054			926
Other revenues	1			—					1			1
Total operating revenues	1,247			1,177			6		3,692			3,366			10
Insurance claims and policyholders' benefits	446			433					1,314			1,348
Amortization of deferred acquisition costs	165			158					478			462
Non-insurance warranty expense	330			293					973			859
Other insurance related expenses	71			66					212			208
Other expenses	13			14					36			37
Total claims, benefits and expenses	1,025			964			(6)		3,013			2,914			(3)
Core income (loss) before income tax	222			213					679			452
Income tax (expense) benefit on core income (loss)	(49)			(45)					(148)			(98)
Core income (loss)	$	173		$	168		3	%	$	531		$	354		50	%

Other Performance Metrics
Underwriting gain (loss)	$	91		$	77		18	%	$	266		$	106		151	%

Loss & LAE ratio	57.7		%	59.0		%	1.3	pts	57.8		%	63.4		%	5.6	pts
Expense ratio	30.6			30.5			(0.1)		30.4			31.5			1.1
Dividend ratio	(0.1)			—			0.1		0.1			0.1			—
Combined ratio	88.2		%	89.5		%	1.3	pts	88.3		%	95.0		%	6.7	pts
Combined ratio excluding catastrophes and development	89.6		%	90.5		%	0.9	pts	89.6		%	91.4		%	1.8	pts

Net accident year catastrophe losses incurred	$	3		$	7				$	9		$	120
Effect on loss & LAE ratio	0.4		%	1.0		%	0.6	pts	0.4		%	5.7		%	5.3	pts

Net prior year development and other: (favorable) / unfavorable	$	(13)		$	(14)				$	(38)		$	(45)
Effect on loss & LAE ratio	(1.8)		%	(2.0)		%	(0.2)	pts	(1.7)		%	(2.1)		%	(0.4)	pts

Rate	9		%	13		%	(4)	pts	10		%	12		%	(2)	pts
Renewal premium change	8		%	15		%	(7)	pts	10		%	13		%	(3)	pts
Retention	80		%	87		%	(7)	pts	84		%	86		%	(2)	pts
New business	$	147		$	105		40	%	$	370		$	275		35	%

Commercial - Results of Operations


Periods ended September 30	Three Months								Nine Months
(In millions)	2021			2020			Change		2021			2020			Change
Gross written premiums	$	1,010		$	915		10	%	$	3,284		$	3,103		6	%
Gross written premiums ex. 3rd party captives	1,005			915			10		3,176			3,018			5
Net written premiums	831			804			3		2,622			2,703			(3)

Net earned premiums	893			857			4		2,629			2,470			6
Net investment income	141			151					463			354
Other revenues	7			5					17			18
Total operating revenues	1,041			1,013			3		3,109			2,842			9
Insurance claims and policyholders' benefits	725			676					1,963			1,855
Amortization of deferred acquisition costs	148			150					449			441
Other insurance related expenses	125			128					376			379
Other expenses	8			7					28			25
Total claims, benefits and expenses	1,006			961			(5)		2,816			2,700			(4)
Core income (loss) before income tax	35			52					293			142
Income tax (expense) benefit on core income (loss)	(8)			(11)					(60)			(29)
Core income (loss)	$	27		$	41		(34)	%	$	233		$	113		106	%

Other Performance Metrics
Underwriting gain (loss)	$	(105)		$	(97)		(8)	%	$	(159)		$	(205)		22	%

Loss & LAE ratio	80.6		%	78.4		%	(2.2)	pts	74.0		%	74.5		%	0.5	pts
Expense ratio	30.4			32.3			1.9		31.4			33.2			1.8
Dividend ratio	0.6			0.6			—		0.6			0.6			—
Combined ratio	111.6		%	111.3		%	(0.3)	pts	106.0		%	108.3		%	2.3	pts
Combined ratio excluding catastrophes and development	92.5		%	93.7		%	1.2	pts	92.8		%	93.9		%	1.1	pts

Net accident year catastrophe losses incurred	$	166		$	146				$	332		$	354
Effect on loss & LAE ratio	18.6		%	17.0		%	(1.6)	pts	12.6		%	14.3		%	1.7	pts

Net prior year development and other: (favorable) / unfavorable	$	5		$	6				$	19		$	4
Effect on loss & LAE ratio	0.5		%	0.6		%	0.1	pts	0.6		%	0.1		%	(0.5)	pts

Rate	6		%	11		%	(5)	pts	8		%	10		%	(2)	pts
Renewal premium change	8		%	9		%	(1)	pts	9		%	9		%	—	pts
Retention	83		%	82		%	1	pts	82		%	84		%	(2)	pts
New business	$	204		$	168		21	%	$	615		$	564		9	%

International - Results of Operations


Periods ended September 30	Three Months								Nine Months
(In millions)	2021			2020			Change		2021			2020			Change
Gross written premiums	$	276		$	238		16	%	$	958		$	822		17	%
Net written premiums	256			222			15		783			680			15

Net earned premiums	271			236			15		789			699			13
Net investment income	14			15					42			44
Other revenues	—			—					1			—
Total operating revenues	285			251			14		832			743			12
Insurance claims and policyholders' benefits	171			150					485			480
Amortization of deferred acquisition costs	55			52					157			143
Other insurance related expenses	32			31					106			106
Other expenses	4			(8)					(4)			3
Total claims, benefits and expenses	262			225			(16)		744			732			(2)
Core income (loss) before income tax	23			26					88			11
Income tax (expense) benefit on core income (loss)	(6)			1					(21)			4
Core income (loss)	$	17		$	27		(37)	%	$	67		$	15		N/M	%

Other Performance Metrics
Underwriting gain (loss)	$	13		$	3		N/M	%	$	41		$	(30)		N/M	%

Loss & LAE ratio	63.4		%	63.2		%	(0.2)	pts	61.5		%	68.6		%	7.1	pts
Expense ratio	32.1			34.9			2.8		33.3			35.6			2.3
Dividend ratio	—			—			—		—			—			—
Combined ratio	95.5		%	98.1		%	2.6	pts	94.8		%	104.2		%	9.4	pts
Combined ratio excluding catastrophes and development	91.0		%	95.0		%	4.0	pts	92.5		%	95.7		%	3.2	pts

Net accident year catastrophe losses incurred	$	9		$	7				$	16		$	62
Effect on loss & LAE ratio	3.4		%	3.0		%	(0.4)	pts	2.0		%	8.9		%	6.9	pts

Net prior year development and other: (favorable) / unfavorable	$	3		$	—				$	2		$	(3)
Effect on loss & LAE ratio	1.1		%	0.1		%	(1.0)	pts	0.3		%	(0.4)		%	(0.7)	pts

Rate	13		%	17		%	(4)	pts	13		%	13		%	—	pts
Renewal premium change	12		%	15		%	(3)	pts	12		%	11		%	1	pts
Retention	79		%	69		%	10	pts	76		%	71		%	5	pts
New business	$	54		$	54		—	%	$	204		$	184		11	%

Life & Group - Results of Operations


Periods ended September 30	Three Months				Nine Months
(In millions)	2021		2020		2021		2020
Net earned premiums	$	123	$	127	$	369	$	380
Net investment income	240		208		724		622
Other revenues	(1)		—		(1)		—
Total operating revenues	362		335		1,092		1,002
Insurance claims and policyholders' benefits	296		363		899		983
Other insurance related expenses	27		28		77		79
Other expenses	1		3		5		6
Total claims, benefits and expenses	324		394		981		1,068
Core income (loss) before income tax	38		(59)		111		(66)
Income tax (expense) benefit on core income (loss)	3		24		9		49
Core income (loss)	$	41	$	(35)	$	120	$	(17)

Corporate & Other - Results of Operations


Periods ended September 30	Three Months				Nine Months
(In millions)	2021		2020		2021		2020
Net earned premiums	$	(1)	$	(1)	$	(1)	$	(1)
Net investment income	2		17		12		45
Other revenues	1		1		1		—
Total operating revenues	2		17		12		44
Insurance claims and policyholders' benefits	(6)		(6)		23		17
Other insurance related expenses	(2)		(2)		8		(3)
Other expenses	36		34		115		106
Total claims, benefits and expenses	28		26		146		120
Core income (loss) before income tax	(26)		(9)		(134)		(76)
Income tax (expense) benefit on core income (loss)	5		1		24		11
Core income (loss)	$	(21)	$	(8)	$	(110)	$	(65)

Investment Summary - Consolidated


	September 30, 2021				June 30, 2021				December 31, 2020
(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	$	24,532	$	2,925	$	24,392	$	3,118	$	24,352	$	3,556
States, municipalities and political subdivisions:
Tax-exempt	7,953		1,117		8,285		1,221		8,499		1,311
Taxable	4,026		478		3,581		520		3,093		552
Total states, municipalities and political subdivisions	11,979		1,595		11,866		1,741		11,592		1,863
Asset-backed:
RMBS	3,259		83		3,426		89		3,587		145
CMBS	2,116		69		2,135		84		1,967		51
Other ABS	2,497		72		2,415		81		2,251		72
Total asset-backed	7,872		224		7,976		254		7,805		268
U.S. Treasury and obligations of government-sponsored enterprises	136		(3)		137		(5)		338		(1)
Foreign government	538		17		539		21		544		32
Redeemable preferred stock	12		—		—		—		—		—
Total fixed maturity securities	45,069		4,758		44,910		5,129		44,631		5,718
Equities:
Common stock	228		—		214		—		195		—
Non-redeemable preferred stock	817		—		819		—		797		—
Total equities	1,045		—		1,033		—		992		—
Limited partnership investments	1,874		—		1,781		—		1,619		—
Other invested assets	82		—		70		—		76		—
Mortgage loans	1,031		—		1,006		—		1,068		—
Short term investments	1,135		1		1,465		—		1,907		—
Total investments	$	50,236	$	4,759	$	50,265	$	5,129	$	50,293	$	5,718

Net receivable/(payable) on investment activity	$	(70)			$	(103)			$	22

Effective duration (in years)	6.7				6.6				6.3
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, 2021				June 30, 2021				December 31, 2020
(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	$	15,377	$	924	$	15,349	$	1,048	$	15,560	$	1,348
States, municipalities and political subdivisions:
Tax-exempt	1,625		83		1,696		106		1,711		114
Taxable	2,225		73		1,761		99		1,286		110
Total states, municipalities and political subdivisions	3,850		156		3,457		205		2,997		224
Asset-backed:
RMBS	3,198		80		3,361		86		3,507		140
CMBS	2,013		66		2,056		80		1,879		46
Other ABS	2,259		55		2,200		64		2,056		52
Total asset-backed	7,470		201		7,617		230		7,442		238
U.S. Treasury and obligations of government-sponsored enterprises	116		(2)		116		(4)		327		(1)
Foreign government	510		16		525		19		529		29
Redeemable preferred stock	12		—		—		—		—		—
Total fixed maturity securities	27,335		1,295		27,064		1,498		26,855		1,838
Equities:
Common stock	228		—		214		—		195		—
Non-redeemable preferred stock	179		—		172		—		202		—
Total equities	407		—		386		—		397		—
Limited partnership investments	1,037		—		986		—		896		—
Other invested assets	82		—		70		—		76		—
Mortgage loans	785		—		759		—		782		—
Short term investments	1,112		1		1,392		—		1,772		—
Total investments	$	30,758	$	1,296	$	30,657	$	1,498	$	30,778	$	1,838

Net receivable/(payable) on investment activity	$	(106)			$	(88)			$	10

Effective duration (in years)	5.1				4.9				4.5
Weighted average rating	A-				A-				A

Investment Summary - Life & Group


	September 30, 2021				June 30, 2021				December 31, 2020
(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	$	9,155	$	2,001	$	9,043	$	2,070	$	8,792	$	2,208
States, municipalities and political subdivisions:
Tax-exempt	6,328		1,034		6,589		1,115		6,788		1,197
Taxable	1,801		405		1,820		421		1,807		442
Total states, municipalities and political subdivisions	8,129		1,439		8,409		1,536		8,595		1,639
Asset-backed:
RMBS	61		3		65		3		80		5
CMBS	103		3		79		4		88		5
Other ABS	238		17		215		17		195		20
Total asset-backed	402		23		359		24		363		30
U.S. Treasury and obligations of government-sponsored enterprises	20		(1)		21		(1)		11		—
Foreign government	28		1		14		2		15		3
Redeemable preferred stock	—		—		—		—		—		—
Total fixed maturity securities	17,734		3,463		17,846		3,631		17,776		3,880
Equities:
Common stock	—		—		—		—		—		—
Non-redeemable preferred stock	638		—		647		—		595		—
Total equities	638		—		647		—		595		—
Limited partnership investments	837		—		795		—		723		—
Other invested assets	—		—		—		—		—		—
Mortgage loans	246		—		247		—		286		—
Short term investments	23		—		73		—		135		—
Total investments	$	19,478	$	3,463	$	19,608	$	3,631	$	19,515	$	3,880

Net receivable/(payable) on investment activity	$	36			$	(15)			$	12

Effective duration (in years)	9.3				9.3				9.2
Weighted average rating	A				A				A

Investments - Fixed Maturity Securities by Credit Rating


September 30, 2021	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	$	—		$	—	$	34		$	1	$	501		$	42	$	5,416		$	671	$	16,372		$	2,107	$	2,209		$	104	$	24,532		$	2,925
States, municipalities and political subdivisions	—			—		2,873			348		5,945			742		2,658			449		490			55		13			1		11,979			1,595
Asset-backed:
RMBS	2,800			60		264			(1)		9			—		48			7		6			—		132			17		3,259			83
CMBS	2			—		342			18		907			42		272			8		446			1		147			—		2,116			69
Other ABS	—			—		109			1		124			1		1,041			19		1,163			50		60			1		2,497			72
Total asset-backed	2,802			60		715			18		1,040			43		1,361			34		1,615			51		339			18		7,872			224
U.S. Treasury and obligations of government-sponsored enterprises	136			(3)		—			—		—			—		—			—		—			—		—			—		136			(3)
Foreign government	—			—		156			4		251			6		103			5		28			2		—			—		538			17
Redeemable preferred stock	—			—		—			—		—			—		—			—		—			—		12			—		12			—
Total fixed maturity securities	$	2,938		$	57	$	3,778		$	371	$	7,737		$	833	$	9,538		$	1,159	$	18,505		$	2,215	$	2,573		$	123	$	45,069		$	4,758

Percentage of total fixed maturity securities	7		%			8		%			17		%			21		%			41		%			6		%			100		%

Components of Net Investment Income


Periods ended September 30	Consolidated
	Three Months						Nine Months
(In millions)	2021			2020			2021			2020
Taxable fixed income securities	$	360		$	363		$	1,075		$	1,094
Tax-exempt fixed income securities	77			80			236			238
Total fixed income securities	437			443			1,311			1,332
Limited partnership and common stock investments	77			71			294			30
Other, net of investment expense	(1)			3			3			18
Net investment income	$	513		$	517		$	1,608		$	1,380

Effective income yield for fixed income securities portfolio	4.3		%	4.5		%	4.3		%	4.6		%
Limited partnership and common stock return	3.8			4.1			16.4			1.7


	Property & Casualty and Corporate & Other
Periods ended September 30
	Three Months						Nine Months
(In millions)	2021			2020			2021			2020
Taxable fixed income securities	$	221		$	224		$	666		$	683
Tax-exempt fixed income securities	12			9			37			22
Total fixed income securities	233			233			703			705
Limited partnership and common stock investments	39			71			172			30
Other, net of investment expense	1			5			9			23
Net investment income	$	273		$	309		$	884		$	758

Effective income yield for fixed income securities portfolio	3.6		%	3.8		%	3.7		%	3.9		%



Periods ended September 30	Life & Group
	Three Months						Nine Months
(In millions)	2021			2020			2021			2020
Taxable fixed income securities	$	139		$	139		$	409		$	411
Tax-exempt fixed income securities	65			71			199			216
Total fixed income securities	204			210			608			627
Limited partnership and common stock investments	38			—			122			—
Other, net of investment expense	(2)			(2)			(6)			(5)
Net investment income	$	240		$	208		$	724		$	622

Effective income yield for fixed income securities portfolio	5.5		%	5.6		%	5.5		%	5.6		%

Claim & Claim Adjustment Expense Reserve Rollforward


Three months ended September 30, 2021 (In millions)	Specialty		Commercial		International		P&C Operations		Life & Group		Corporate & Other		Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	6,178	$	8,533	$	2,225	$	16,936	$	3,754	$	2,790	$	23,480
Ceded	1,056		727		319		2,102		123		2,510		4,735
Net	5,122		7,806		1,906		14,834		3,631		280		18,745

Net incurred claim & claim adjustment expenses	446		720		171		1,337		194		3		1,534
Net claim & claim adjustment expense payments	(366)		(513)		(119)		(998)		(236)		(3)		(1,237)
Foreign currency translation adjustment and other	—		—		(38)		(38)		(7)		(1)		(46)

Claim & claim adjustment expense reserves, end of period
Net	5,202		8,013		1,920		15,135		3,582		279		18,996
Ceded	1,091		843		331		2,265		121		2,450		4,836
Gross	$	6,293	$	8,856	$	2,251	$	17,400	$	3,703	$	2,729	$	23,832


Nine months ended September 30, 2021 (In millions)	Specialty		Commercial		International		P&C Operations		Life & Group		Corporate & Other		Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	5,748	$	8,250	$	2,091	$	16,089	$	3,743	$	2,874	$	22,706
Ceded	850		775		269		1,894		128		1,983		4,005
Net	4,898		7,475		1,822		14,195		3,615		891		18,701

Reduction of net reserves due to Excess Workers' Compensation Loss Portfolio Transfer	—		—		—		—		—		(632)		(632)
Net incurred claim & claim adjustment expenses	1,312		1,948		485		3,745		690		46		4,481
Net claim & claim adjustment expense payments	(1,008)		(1,410)		(350)		(2,768)		(709)		(26)		(3,503)
Foreign currency translation adjustment and other	—		—		(37)		(37)		(14)		—		(51)

Claim & claim adjustment expense reserves, end of period
Net	5,202		8,013		1,920		15,135		3,582		279		18,996
Ceded	1,091		843		331		2,265		121		2,450		4,836
Gross	$	6,293	$	8,856	$	2,251	$	17,400	$	3,703	$	2,729	$	23,832

Life & Group Policyholder Reserves


September 30, 2021
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,839	$	9,971	$	12,810
Structured settlement annuities and other	540		—		540
Total	3,379		9,971		13,350
Shadow adjustments	203		2,938		3,141
Ceded reserves	121		289		410
Total gross reserves	$	3,703	$	13,198	$	16,901


December 31, 2020
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,844	$	9,762	$	12,606
Structured settlement annuities and other	553		—		553
Total	3,397		9,762		13,159
Shadow adjustments	218		3,293		3,511
Ceded reserves	128		263		391
Total gross reserves	$	3,743	$	13,318	$	17,061

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 business 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, 2020 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 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.

•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 November 1, 2021, providing information on the third quarter 2021 results of operations.

99.2						CNA Financial Corporation financial supplement, posted on its website November 1, 2021, providing supplemental financial information on the third quarter 2021.

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


		CNA Financial Corporation
		(Registrant)

Date: November 1, 2021	By	/s/ Larry Haefner
		(Signature)
		Larry Haefner Interim Chief Financial Officer


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


(Exact name of registrant as specified in its charter)