Document

FOR IMMEDIATE RELEASE

CNA FINANCIAL ANNOUNCES THIRD QUARTER 2020

NET INCOME OF $0.79 PER SHARE AND CORE INCOME OF $0.71 PER SHARE


•	Third quarter net income was $213 million versus net income of $107 million in the prior year quarter, and core income was $193 million versus core income of $102 million in the prior year quarter.


•	Third quarter net and core income includes an LTC GPV charge of $59 million after-tax primarily driven by actions taken on discount rate assumptions.


•	Third quarter net catastrophe losses were $160 million pretax driven by severe weather related events, primarily Hurricanes Laura, Isaias and Sally, and the Midwest derecho. No change to COVID-19 catastrophe loss estimate.


•	The third quarter P&C combined ratio was 100.9% compared with 97.6% in the prior year quarter, including 8.7 points of catastrophe loss impact compared with 1.8 points in the prior year quarter.


•	The underlying combined ratio was 92.6% compared with 94.6% in the prior year quarter. The underlying loss ratio was 60.5% compared with 61.7% in the prior year quarter and the expense ratio was 31.8% compared with 32.5% in the prior year quarter.


•	P&C segments, excluding third party captives, generated gross written premium growth of 9% and net written premium growth of 7%.


•	P&C rate change increased to +12% in the third quarter.


•	Net investment income of $517 million pretax includes $71 million of income from LPs and common stock.


•	Board of Directors declares regular quarterly cash dividend of $0.37 per share.

CHICAGO, November 2, 2020 --- CNA Financial Corporation (NYSE: CNA) today announced third quarter 2020 net income of $213 million, or $0.79 per share, versus $107 million, or $0.39 per share, in the prior year quarter. Core income for the current quarter was $193 million, or $0.71 per share, versus $102 million, or $0.37 per share, in the prior year quarter.

Our Property & Casualty segments produced core income of $247 million for the third quarter of 2020, an increase of $6 million compared to the prior year quarter primarily due to improved non-catastrophe current accident year underwriting results, higher net investment income driven by limited partnership and common stock returns and favorable net prior year loss reserve development in the current year period. These results were largely offset by higher net catastrophe losses.

Our Life & Group and Corporate & Other segments produced core losses for the third quarter of 2020 of $(35) million and $(19) million, respectively. Life & Group results include a $59 million after-tax charge related to unlocking active life reserves as a result of the gross premium valuation (GPV) completed in the quarter primarily driven by actions taken on discount rate assumptions. Life & Group results were also impacted by a $36 million after-tax increase in the structured settlement reserves and a $30 million after-tax reduction in long term care (LTC) claim reserves.

CNA Financial declared a quarterly dividend of $0.37 per share, payable December 3, 2020 to stockholders of record on November 16, 2020.



	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
($ millions, except per share data)	2020		2019		2020		2019
Net income	$	213	$	107	$	303	$	727
Core income ^(a)	193		102		400		714

Net income per diluted share	$	0.79	$	0.39	$	1.11	$	2.67
Core income per diluted share	0.71		0.37		1.47		2.62



	September 30, 2020		December 31, 2019
Book value per share	$	44.30	$	45.00
Book value per share excluding AOCI		42.78		44.81


(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.

“CNA continued to execute effectively during these unprecedented times as evidenced by the ongoing acceleration in our P&C rate achievement, higher overall premium growth and a significantly improved underlying loss ratio and expense ratio in the third quarter. And, with our annual reserve review of our runoff Long Term Care business, we took significant actions on our discount rate assumptions intended to further protect our capital and earnings in the face of what can very well be a protracted low interest rate environment,” 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)	2020				2019			2020			2019
Gross written premiums ex. 3^rd party captives	$	2,014			$	1,856		$	6,253		$	5,843
GWP ex. 3^rd party captives change (% year over year)	9			%				7		%
Net written premiums	$	1,821			$	1,708		$	5,614		$	5,388
NWP change (% year over year)	7			%				4		%
Net investment income	$	306			$	274		$	748		$	937
Core income	247				241			465			853

Loss ratio excluding catastrophes and development	60.5			%	61.7		%	60.1		%	61.1			%
Effect of catastrophe impacts	8.7				1.8			10.1			2.5
Effect of development-related items	(0.4		)		1.2			0.1			(0.2		)
Loss ratio	68.8			%	64.7		%	70.3		%	63.4			%

Expense ratio	31.8			%	32.5		%	32.9		%	33.3			%

Combined ratio	100.9			%	97.6		%	103.5		%	97.1			%
Combined ratio excluding catastrophes and development	92.6			%	94.6		%	93.3		%	94.8			%


•	The combined ratio excluding catastrophes and development improved 2.0 points as compared with the prior year quarter. The underlying loss ratio improved 1.2 points primarily due to lower large losses in the International segment. The expense ratio improved 0.7 points driven by higher net earned premiums and lower underwriting expenses in the current quarter.

•

The combined ratio increased 3.3 points as compared with the prior year quarter. Net catastrophe losses were $160 million, or 8.7 points of the loss ratio in the third quarter of 2020, compared with $32 million, or 1.8 points of the loss ratio, for the prior year quarter. Net catastrophe losses in the third quarter of 2020 were driven by severe weather related events, primarily Hurricanes Laura, Isaias and Sally, and the Midwest derecho. Favorable net prior period development improved the loss ratio by 0.4 points in the quarter compared with 1.2 points of unfavorable development increasing the loss ratio in the prior year quarter.


•	P&C segments, excluding third party captives, generated gross written premium growth of 9% and net written premium growth of 7% driven by higher rate and new business.

Business Operating Highlights

Specialty



	Results for the Three Months Ended September 30								Results for the Nine Months Ended September 30
($ millions)	2020				2019				2020				2019
Gross written premiums ex. 3^rd party captives	$	861			$	778			$	2,413			$	2,263
GWP ex. 3^rd party captives change (% year over year)	11			%					7			%
Net written premiums	$	795			$	732			$	2,231			$	2,143
NWP change (% year over year)	9			%					4			%
Core income	$	168			$	153			$	354			$	483

Loss ratio excluding catastrophes and development	60.0			%	60.1			%	59.8			%	60.2			%
Effect of catastrophe impacts	1.0				0.5				5.7				0.8
Effect of development-related items	(2.0		)		(2.8		)		(2.1		)		(2.9		)
Loss ratio	59.0			%	57.8			%	63.4			%	58.1			%

Expense ratio	30.5			%	31.8			%	31.5			%	32.6			%

Combined ratio	89.5			%	89.8			%	95.0			%	90.9			%
Combined ratio excluding catastrophes and development	90.5			%	92.1			%	91.4			%	93.0			%


•	The combined ratio excluding catastrophes and development improved 1.6 points as compared with the prior year quarter primarily due to a 1.3 point improvement in the expense ratio driven by lower underwriting expenses and higher net earned premiums. The underlying loss ratio improved 0.1 points.

•

The combined ratio improved 0.3 points as compared with the prior year quarter. Net catastrophe losses were $7 million, or 1.0 point of the loss ratio in the third quarter of 2020, compared with $3 million, or 0.5 points of the loss ratio, for the prior year quarter. Favorable net prior period development improved the loss ratio by 2.0 points in the quarter compared with a 2.8 point improvement in the prior year quarter.


•	Gross written premiums, excluding third party captives, grew 11% and net written premiums grew 9% for the third quarter of 2020 driven by strong rate and higher new business.

Commercial



	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2020			2019			2020			2019
Gross written premiums ex. 3^rd party captives	$	915		$	852		$	3,018		$	2,742
GWP ex. 3^rd party captives change (% year over year)	7		%				10		%
Net written premiums	$	804		$	775		$	2,703		$	2,536
NWP change (% year over year)	4		%				7		%
Core income	$	52		$	97		$	96		$	356

Loss ratio excluding catastrophes and development	61.0		%	61.5		%	60.4		%	61.8		%
Effect of catastrophe impacts	17.0			3.0			14.3			4.3
Effect of development-related items	0.6			4.8			2.1			1.5
Loss ratio	78.6		%	69.3		%	76.8		%	67.6		%

Expense ratio	32.3		%	31.7		%	33.2		%	32.7		%

Combined ratio	111.5		%	101.6		%	110.6		%	100.9		%
Combined ratio excluding catastrophes and development	93.9		%	93.8		%	94.2		%	95.1		%


•	The combined ratio excluding catastrophes and development increased 0.1 points as compared with the prior year quarter. The expense ratio increased 0.6 points driven by higher acquisition expenses partially offset by higher net earned premiums. This was partially offset by a 0.5 point improvement in the underlying loss ratio.

•

The combined ratio increased 9.9 points as compared with the prior year quarter. Net catastrophe losses were $146 million, or 17.0 points of the loss ratio in the third quarter of 2020, compared with $25 million, or 3.0 points of the loss ratio, for the prior year quarter. Unfavorable net prior period development increased the loss ratio by 0.6 points in the quarter compared with 4.8 points of unfavorable impact in the prior year quarter.


•	Gross written premiums, excluding third party captives, grew 7% and net written premiums grew 4% for the third quarter of 2020 driven by strong rate.

International



	Results for the Three Months Ended September 30							Results for the Nine Months Ended September 30
($ millions)	2020			2019				2020				2019
Gross written premiums	$	238		$	226			$	822			$	837
GWP change (% year over year)	5		%					(2		)	%
Net written premiums	$	222		$	201			$	680			$	709
NWP change (% year over year)	10		%					(4		)	%
Core income (loss)	$	27		$	(9	)		$	15			$	14

Loss ratio excluding catastrophes and development	60.1		%	67.3			%	60.1			%	61.4		%
Effect of catastrophe impacts	3.0			1.7				8.9				1.4
Effect of development-related items	0.1			0.4				(0.4		)		1.9
Loss ratio	63.2		%	69.4			%	68.6			%	64.7		%

Expense ratio	34.9		%	38.0			%	35.6			%	37.5		%

Combined ratio	98.1		%	107.4			%	104.2			%	102.2		%
Combined ratio excluding catastrophes and development	95.0		%	105.3			%	95.7			%	98.9		%


•	The combined ratio excluding catastrophes and development improved 10.3 points as compared with the prior year quarter. The underlying loss ratio improved 7.2 points primarily due to lower large losses. The expense ratio improved 3.1 points driven by lower acquisition and underwriting expenses.

•

The combined ratio improved 9.3 points for the third quarter of 2020 as compared with the prior year quarter. Net catastrophe losses were $7 million, or 3.0 points of the loss ratio in the third quarter of 2020, compared with $4 million, or 1.7 points of the loss ratio, for the prior year quarter. Unfavorable net prior year development increased the loss ratio by 0.1 points in the quarter compared with 0.4 points in the prior year quarter.


•	Excluding currency fluctuations, gross written premiums increased 4% and net written premiums increased 9% for the third quarter of 2020 driven by growth in Europe and Canada partially offset by the continued impact of the strategic exit from certain Lloyd’s business classes.

Life & Group



	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2020			2019			2020			2019
Net earned premiums	$	127		$	130		$	380		$	390
Net investment income	208			207			622			616
Core loss	(35		)	(122		)	(17		)	(105		)

Core loss improved $87 million for the third quarter of 2020 as compared with the prior year quarter. The core loss in the third quarter of 2020 included a $59 million after-tax charge related to the recognition of an active life reserve premium deficiency primarily driven by actions taken on discount rate assumptions. The normative risk free rate was lowered by 100 bps to 2.75% and the time period to grade up to the normative rate was extended from 6 years to 10 years. Results were also impacted by a $36 million after-tax increase in the structured settlement reserves and a $30 million after-tax reduction in LTC claim reserves, both resulting from the 2020 annual claim experience studies. Excluding the impacts of the reserve reviews, core results were favorable driven by better than expected morbidity in the LTC business.

The prior year quarter included a $170 million after-tax charge related to recognition of an active life reserve premium deficiency primarily driven by lower discount rate assumptions partially offset by a $44 million after-tax reduction in LTC claim reserves resulting from the 2019 annual claim experience study.

Corporate & Other



	Results for the Three Months Ended September 30						Results for the Nine Months Ended September 30
($ millions)	2020			2019			2020			2019
Net investment income	$	3		$	6		$	10		$	20
Interest expense	32			31			94			99
Core loss	(19		)	(17		)	(48		)	(34		)

Core loss of $19 million for the third quarter of 2020 was generally consistent with the prior year quarter.

Net Investment Income



	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
	2020		2019		2020		2019
Pretax net investment income	$	517	$	487	$	1,380	$	1,573
Net investment income, after tax	421		399		1,130		1,284

Pretax net investment income increased $30 million as compared with the prior year quarter. The increase was driven by limited partnership and common stock investments, which returned 4.1%, or $71 million in the third quarter of 2020 compared with 0.9%, or $18 million, in the prior year quarter partially offset by lower yields in our fixed income portfolio.

About the Company

CNA is one of the largest U.S. commercial property and casualty insurance companies. CNA provides a broad range of standard and specialized property and casualty insurance products and services for businesses and professionals in the U.S., Canada and Europe, backed by more than 120 years of experience and approximately $45 billion of invested assets. For more information, please visit CNA at www.cna.com.

Contact



Media:		Analysts:
Cara McCall, 312-822-1309		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, Al Miralles, Executive Vice President and 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 and asbestos and environmental pollution (A&EP).

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. 3^rd 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)



	Results for the Three Months Ended September 30				Results for the Nine Months Ended September 30
($ millions)	2020		2019		2020			2019
Net income	$	213	$	107	$	303		$	727
Less: Net investment gains (losses)	20		5		(97		)	13
Core income	$	193	$	102	$	400		$	714

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
	2020		2019		2020			2019
Net income per diluted share	$	0.79	$	0.39	$	1.11		$	2.67
Less: Net investment gains (losses)	0.08		0.02		(0.36		)	0.05
Core income per diluted share	$	0.71	$	0.37	$	1.47		$	2.62

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, 2020		December 31, 2019
Book value per share	$	44.30	$	45.00
Less: Per share impact of AOCI	1.52		0.19
Book value per share excluding AOCI	$	42.78	$	44.81

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)	2020			2019			2020			2019
Annualized net income	$	855		$	428		$	405		$	970
Average stockholders' equity including AOCI ^(a)	11,833			12,105			12,118			11,670
Return on equity	7.2		%	3.5		%	3.3		%	8.3		%

Annualized core income	$	772		$	406		$	533		$	952
Average stockholders' equity excluding AOCI ^(a)	11,550			11,975			11,887			12,039
Core return on equity	6.7		%	3.4		%	4.5		%	7.9		%


(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 © 2020 CNA. All rights reserved.

# # #

CNA Financial Corporation

Supplemental Financial Information

September 30, 2020

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 Statement 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)	2020			2019			Change		2020			2019			Change
Revenues:
Net earned premiums	$	1,953		$	1,890		3	%	$	5,672		$	5,517		3		%
Net investment income	517			487			6		1,380			1,573			(12	)
Net investment gains (losses)	27			7					(120		)	20
Non-insurance warranty revenue	317			292					926			858
Other revenues	6			9					19			22
Total revenues	2,820			2,685			5		7,877			7,990			(1	)
Claims, Benefits and Expenses:
Insurance claims and policyholders' benefits	1,616			1,614					4,683			4,323
Amortization of deferred acquisition costs	360			345					1,046			1,025
Non-insurance warranty expense	293			278					859			801
Other operating expenses	269			289					852			853
Interest	32			32					94			100
Total claims, benefits and expenses	2,570			2,558			—		7,534			7,102			(6	)
Income (loss) before income tax	250			127					343			888
Income tax (expense) benefit	(37		)	(20		)			(40		)	(161		)
Net income (loss)	$	213		$	107		99	%	$	303		$	727		(58	)	%

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)	2020			2019			2020				2019
Components of Income (Loss)
Core income (loss)	$	193		$	102		$	400			$	714
Net investment gains (losses)	20			5			(97		)		13
Net income (loss)	$	213		$	107		$	303			$	727

Diluted Earnings (Loss) Per Common Share
Core income (loss)	$	0.71		$	0.37		$	1.47			$	2.62
Net investment gains (losses)	0.08			0.02			(0.36		)		0.05
Diluted earnings (loss) per share	$	0.79		$	0.39		$	1.11			$	2.67

Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic	271.7			271.6			271.6				271.6
Diluted	272.3			272.6			272.3				272.5

Return on Equity
Net income (loss) ⁽¹⁾	7.2		%	3.5		%	3.3			%	8.3		%
Core income (loss) ⁽²⁾	6.7			3.4			4.5				7.9

(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, 2020		December 31, 2019
Total investments	$	49,006	$	47,744
Reinsurance receivables, net of allowance for uncollectible receivables	4,370		4,179
Total assets	62,775		60,612
Insurance reserves	40,532		38,614
Debt	2,776		2,679
Total liabilities	50,754		48,397
Accumulated other comprehensive income (loss) ⁽¹⁾	411		51
Total stockholders' equity	12,021		12,215

Book value per common share	$	44.30	$	45.00
Book value per common share excluding AOCI	$	42.78	$	44.81

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

Statutory capital and surplus - Combined Continental Casualty Companies ⁽²⁾	$	10,288	$	10,787



Three months ended September 30	2020			2019
Net cash flows provided (used) by operating activities	$	758		$	466
Net cash flows provided (used) by investing activities	(882		)	(293		)
Net cash flows provided (used) by financing activities	(25		)	(99		)
Net cash flows provided (used) by operating, investing and financing activities	$	(149	)	$	74



Nine months ended September 30	2020			2019
Net cash flows provided (used) by operating activities	$	1,408		$	980
Net cash flows provided (used) by investing activities	(407		)	(60		)
Net cash flows provided (used) by financing activities	(801		)	(887		)
Net cash flows provided (used) by operating, investing and financing activities	$	200		$	33

(1) As of September 30, 2020 and December 31, 2019, the net unrealized gains on investments included in AOCI were net of after-tax Shadow Adjustments of $2,559 million and $2,198 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, 2020 is preliminary.

Property & Casualty - Results of Operations



Periods ended September 30	Three Months											Nine Months
(In millions)	2020				2019				Change			2020				2019				Change
Gross written premiums	$	3,008			$	2,852			5		%	$	9,256			$	8,853			5		%
Gross written premiums ex. 3^rdparty captives	2,014				1,856				9			6,253				5,843				7
Net written premiums	1,821				1,708				7			5,614				5,388				4

Net earned premiums	1,827				1,761				4			5,293				5,129				3
Net investment income	306				274							748				937
Non-insurance warranty revenue	317				292							926				858
Other revenues	6				10							19				21
Total operating revenues	2,456				2,337				5			6,986				6,945				1
Insurance claims and policyholders' benefits	1,261				1,145							3,740				3,270
Amortization of deferred acquisition costs	360				345							1,046				1,025
Non-insurance warranty expense	293				278							859				801
Other insurance related expenses	224				229							692				683
Other expenses	13				29							66				78
Total claims, benefits and expenses	2,151				2,026				(6	)		6,403				5,857				(9	)
Core income (loss) before income tax	305				311							583				1,088
Income tax (expense) benefit on core income (loss)	(58		)		(70		)					(118		)		(235		)
Core income (loss)	$	247			$	241			2		%	$	465			$	853			(45	)	%

Other Performance Metrics
Underwriting gain (loss)	$	(18	)		$	42			(143	)	%	$	(185	)		$	151			N/M		%

Loss & LAE ratio	68.8			%	64.7			%	(4.1	)	pts	70.3			%	63.4			%	(6.9	)	pts
Expense ratio	31.8				32.5				0.7			32.9				33.3				0.4
Dividend ratio	0.3				0.4				0.1			0.3				0.4				0.1
Combined ratio	100.9			%	97.6			%	(3.3	)	pts	103.5			%	97.1			%	(6.4	)	pts
Combined ratio excluding catastrophes and development	92.6			%	94.6			%	2.0		pts	93.3			%	94.8			%	1.5		pts

Net accident year catastrophe losses incurred	$	160			$	32						$	536			$	128
Effect on loss & LAE ratio	8.7			%	1.8			%	(6.9	)	pts	10.1			%	2.5			%	(7.6	)	pts

Net prior year development and other: (favorable) / unfavorable	$	(8	)		$	21						$	6			$	(7	)
Effect on loss & LAE ratio	(0.4		)	%	1.2			%	1.6		pts	0.1			%	(0.2		)	%	(0.3	)	pts

Rate	12			%	6			%	6		pts	11			%	4			%	7		pts
Renewal premium change	10			%	7			%	3		pts	9			%	6			%	3		pts
Retention	82			%	84			%	(2	)	pts	82			%	84			%	(2	)	pts
New business	$	330			$	316			4		%	$	1,026			$	1,003			2		%

Specialty - Results of Operations



Periods ended September 30	Three Months											Nine Months
(In millions)	2020				2019				Change			2020				2019				Change
Gross written premiums	$	1,855			$	1,766			5		%	$	5,331			$	5,191			3		%
Gross written premiums ex. 3^rdparty captives	861				778				11			2,413				2,263				7
Net written premiums	795				732				9			2,231				2,143				4

Net earned premiums	734				712				3			2,124				2,061				3
Net investment income	126				121							315				410
Non-insurance warranty revenue	317				292							926				858
Other revenues	—				1							1				1
Total operating revenues	1,177				1,126				5			3,366				3,330				1
Insurance claims and policyholders' benefits	433				413							1,348				1,202
Amortization of deferred acquisition costs	158				155							462				454
Non-insurance warranty expense	293				278							859				801
Other insurance related expenses	66				71							208				217
Other expenses	14				13							37				37
Total claims, benefits and expenses	964				930				(4	)		2,914				2,711				(7	)
Core income (loss) before income tax	213				196							452				619
Income tax (expense) benefit on core income (loss)	(45		)		(43		)					(98		)		(136		)
Core income (loss)	$	168			$	153			10		%	$	354			$	483			(27	)	%

Other Performance Metrics
Underwriting gain (loss)	$	77			$	73			5		%	$	106			$	188			(44	)	%

Loss & LAE ratio	59.0			%	57.8			%	(1.2	)	pts	63.4			%	58.1			%	(5.3	)	pts
Expense ratio	30.5				31.8				1.3			31.5				32.6				1.1
Dividend ratio	—				0.2				0.2			0.1				0.2				0.1
Combined ratio	89.5			%	89.8			%	0.3		pts	95.0			%	90.9			%	(4.1	)	pts
Combined ratio excluding catastrophes and development	90.5			%	92.1			%	1.6		pts	91.4			%	93.0			%	1.6		pts

Net accident year catastrophe losses incurred	$	7			$	3						$	120			$	16
Effect on loss & LAE ratio	1.0			%	0.5			%	(0.5	)	pts	5.7			%	0.8			%	(4.9	)	pts

Net prior year development and other: (favorable) / unfavorable	$	(14	)		$	(20	)					$	(45	)		$	(58	)
Effect on loss & LAE ratio	(2.0		)	%	(2.8		)	%	(0.8	)	pts	(2.1		)	%	(2.9		)	%	(0.8	)	pts

Rate	13			%	6			%	7		pts	11			%	4			%	7		pts
Renewal premium change	12			%	9			%	3		pts	11			%	7			%	4		pts
Retention	86			%	87			%	(1	)	pts	85			%	88			%	(3	)	pts
New business	$	104			$	91			14		%	$	275			$	274			—		%

Commercial - Results of Operations



Periods ended September 30	Three Months											Nine Months
(In millions)	2020				2019				Change			2020				2019				Change
Gross written premiums	$	915			$	860			6		%	$	3,103			$	2,825			10		%
Gross written premiums ex. 3^rdparty captives	915				852				7			3,018				2,742				10
Net written premiums	804				775				4			2,703				2,536				7

Net earned premiums	857				813				5			2,470				2,339				6
Net investment income	165				136							389				480
Other revenues	6				10							18				20
Total operating revenues	1,028				959				7			2,877				2,839				1
Insurance claims and policyholders' benefits	678				569							1,912				1,596
Amortization of deferred acquisition costs	150				134							441				391
Other insurance related expenses	127				123							378				372
Other expenses	7				9							26				27
Total claims, benefits and expenses	962				835				(15	)		2,757				2,386				(16	)
Core income (loss) before income tax	66				124							120				453
Income tax (expense) benefit on core income (loss)	(14		)		(27		)					(24		)		(97		)
Core income (loss)	$	52			$	97			(46	)	%	$	96			$	356			(73	)	%

Other Performance Metrics
Underwriting gain (loss)	$	(98	)		$	(13	)		N/M		%	$	(261	)		$	(20	)		N/M		%

Loss & LAE ratio	78.6			%	69.3			%	(9.3	)	pts	76.8			%	67.6			%	(9.2	)	pts
Expense ratio	32.3				31.7				(0.6	)		33.2				32.7				(0.5	)
Dividend ratio	0.6				0.6				—			0.6				0.6				—
Combined ratio	111.5			%	101.6			%	(9.9	)	pts	110.6			%	100.9			%	(9.7	)	pts
Combined ratio excluding catastrophes and development	93.9			%	93.8			%	(0.1	)	pts	94.2			%	95.1			%	0.9		pts

Net accident year catastrophe losses incurred	$	146			$	25						$	354			$	102
Effect on loss & LAE ratio	17.0			%	3.0			%	(14	)	pts	14.3			%	4.3			%	(10	)	pts

Net prior year development and other: (favorable) / unfavorable	$	6			$	40						$	54			$	37
Effect on loss & LAE ratio	0.6			%	4.8			%	4.2		pts	2.1			%	1.5			%	(0.6	)	pts

Rate	11			%	4			%	7		pts	9			%	3			%	6		pts
Renewal premium change	8			%	5			%	3		pts	8			%	5			%	3		pts
Retention	81			%	86			%	(5	)	pts	84			%	86			%	(2	)	pts
New business	$	168			$	173			(3	)	%	$	564			$	522			8		%

International - Results of Operations



Periods ended September 30	Three Months											Nine Months
(In millions)	2020				2019				Change			2020				2019				Change
Gross written premiums	$	238			$	226			5		%	$	822			$	837			(2	)	%
Net written premiums	222				201				10			680				709				(4	)

Net earned premiums	236				236				—			699				729				(4	)
Net investment income	15				17							44				47
Other revenues	—				(1		)					—				—
Total operating revenues	251				252				—			743				776				(4	)
Insurance claims and policyholders' benefits	150				163							480				472
Amortization of deferred acquisition costs	52				56							143				180
Other insurance related expenses	31				35							106				94
Other expenses	(8		)		7							3				14
Total claims, benefits and expenses	225				261				14			732				760				4
Core income (loss) before income tax	26				(9		)					11				16
Income tax (expense) benefit on core income (loss)	1				—							4				(2		)
Core income (loss)	$	27			$	(9	)		N/M		%	$	15			$	14			7		%

Other Performance Metrics
Underwriting gain (loss)	$	3			$	(18	)		117		%	$	(30	)		$	(17	)		(76	)	%

Loss & LAE ratio	63.2			%	69.4			%	6.2		pts	68.6			%	64.7			%	(3.9	)	pts
Expense ratio	34.9				38.0				3.1			35.6				37.5				1.9
Dividend ratio	—				—				—			—				—				—
Combined ratio	98.1			%	107.4			%	9.3		pts	104.2			%	102.2			%	(2.0	)	pts
Combined ratio excluding catastrophes and development	95.0			%	105.3			%	10.3		pts	95.7			%	98.9			%	3.2		pts

Net accident year catastrophe losses incurred	$	7			$	4						$	62			$	10
Effect on loss & LAE ratio	3.0			%	1.7			%	(1.3	)	pts	8.9			%	1.4			%	(7.5	)	pts

Net prior year development and other: (favorable) / unfavorable	$	—			$	1						$	(3	)		$	14
Effect on loss & LAE ratio	0.1			%	0.4			%	0.3		pts	(0.4		)	%	1.9			%	2.3		pts

Rate	16			%	10			%	6		pts	12			%	7			%	5		pts
Renewal premium change	14			%	6			%	8		pts	11			%	5			%	6		pts
Retention	70			%	74			%	(4	)	pts	71			%	70			%	1		pts
New business	$	58			$	52			12		%	$	187			$	207			(10	)	%

Life & Group - Results of Operations



Periods ended September 30	Three Months						Nine Months
(In millions)	2020			2019			2020			2019
Net earned premiums	$	127		$	130		$	380		$	390
Net investment income	208			207			622			616
Other revenues	—			(1		)	—			—
Total operating revenues	335			336			1,002			1,006
Insurance claims and policyholders' benefits	363			476			983			1,093
Other insurance related expenses	28			29			79			87
Other expenses	3			1			6			5
Total claims, benefits and expenses	394			506			1,068			1,185
Core income (loss) before income tax	(59		)	(170		)	(66		)	(179		)
Income tax (expense) benefit on core income (loss)	24			48			49			74
Core income (loss)	$	(35	)	$	(122	)	$	(17	)	$	(105	)

Corporate & Other - Results of Operations



Periods ended September 30	Three Months						Nine Months
(In millions)	2020			2019			2020			2019
Net earned premiums	$	(1	)	$	(1	)	$	(1	)	$	(2	)
Net investment income	3			6			10			20
Other revenues	—			—			—			1
Total operating revenues	2			5			9			19
Insurance claims and policyholders' benefits	(8		)	(7		)	(40		)	(40		)
Other insurance related expenses	(1		)	(1		)	(2		)	(4		)
Other expenses	34			34			105			104
Total claims, benefits and expenses	25			26			63			60
Core income (loss) before income tax	(23		)	(21		)	(54		)	(41		)
Income tax (expense) benefit on core income (loss)	4			4			6			7
Core income (loss)	$	(19	)	$	(17	)	$	(48	)	$	(34	)

Investment Summary - Consolidated



	September 30, 2020					June 30, 2020						December 31, 2019
(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	$	23,665		$	2,958	$	22,808		$	2,537		$	22,069	$	2,260
States, municipalities and political subdivisions:
Tax-exempt	8,335			1,228		8,185			1,199			7,804		1,155
Taxable	2,889			537		2,942			502			2,848		404
Total states, municipalities and political subdivisions	11,224			1,765		11,127			1,701			10,652		1,559
Asset-backed:
RMBS	3,948			152		3,784			167			4,519		132
CMBS	2,050			15		2,116			(23		)	2,346		81
Other ABS	2,154			57		1,959			19			1,962		37
Total asset-backed	8,152			224		7,859			163			8,827		250
U.S. Treasury and obligations of government-sponsored enterprises	350			3		498			7			145		(1		)
Foreign government	510			29		483			26			504		13
Redeemable preferred stock	—			—		—			—			10		—
Total fixed maturity securities	43,901			4,979		42,775			4,434			42,207		4,081
Equities:
Common stock	173			—		154			—			142		—
Non-redeemable preferred stock	746			—		705			—			723		—
Total equities	919			—		859			—			865		—
Limited partnership investments	1,567			—		1,558			—			1,752		—
Other invested assets	69			—		65			—			65		—
Mortgage loans	1,088			—		1,042			—			994		—
Short term investments	1,462			—		1,458			1			1,861		—
Total investments	$	49,006		$	4,979	$	47,757		$	4,435		$	47,744	$	4,081

Net receivable/(payable) on investment activity	$	(1	)			$	(403	)				$	37

Effective duration (in years)	6.3					6.0						6.0
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, 2020					June 30, 2020						December 31, 2019
(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	$	14,918		$	1,081	$	14,383		$	888		$	13,925	$	738
States, municipalities and political subdivisions:
Tax-exempt	1,308			66		1,154			61			646		37
Taxable	1,025			97		1,030			87			1,077		71
Total states, municipalities and political subdivisions	2,333			163		2,184			148			1,723		108
Asset-backed:
RMBS	3,862			147		3,702			162			4,441		128
CMBS	1,961			12		2,028			(25		)	2,264		77
Other ABS	1,971			33		1,783			1			1,842		29
Total asset-backed	7,794			192		7,513			138			8,547		234
U.S. Treasury and obligations of government-sponsored enterprises	342			3		489			7			143		(1		)
Foreign government	496			27		477			25			498		12
Redeemable preferred stock	—			—		—			—			5		—
Total fixed maturity securities	25,883			1,466		25,046			1,206			24,841		1,091
Equities:
Common stock	173			—		154			—			142		—
Non-redeemable preferred stock	175			—		168			—			181		—
Total equities	348			—		322			—			323		—
Limited partnership investments	1,567			—		1,558			—			1,752		—
Other invested assets	69			—		65			—			65		—
Mortgage loans	792			—		761			—			715		—
Short term investments	1,420			—		1,397			1			1,774		—
Total investments	$	30,079		$	1,466	$	29,149		$	1,207		$	29,470	$	1,091

Net receivable/(payable) on investment activity	$	(70	)			$	(446	)				$	17

Effective duration (in years)	4.5					4.1						4.1
Weighted average rating	A					A						A-

Investment Summary - Life & Group



	September 30, 2020				June 30, 2020				December 31, 2019
(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	$	8,747	$	1,877	$	8,425	$	1,649	$	8,144	$	1,522
States, municipalities and political subdivisions:
Tax-exempt	7,027		1,162		7,031		1,138		7,158		1,118
Taxable	1,864		440		1,912		415		1,771		333
Total states, municipalities and political subdivisions	8,891		1,602		8,943		1,553		8,929		1,451
Asset-backed:
RMBS	86		5		82		5		78		4
CMBS	89		3		88		2		82		4
Other ABS	183		24		176		18		120		8
Total asset-backed	358		32		346		25		280		16
U.S. Treasury and obligations of government-sponsored enterprises	8		—		9		—		2		—
Foreign government	14		2		6		1		6		1
Redeemable preferred stock	—		—		—		—		5		—
Total fixed maturity securities	18,018		3,513		17,729		3,228		17,366		2,990
Equities:
Common stock	—		—		—		—		—		—
Non-redeemable preferred stock	571		—		537		—		542		—
Total equities	571		—		537		—		542		—
Limited partnership investments	—		—		—		—		—		—
Other invested assets	—		—		—		—		—		—
Mortgage loans	296		—		281		—		279		—
Short term investments	42		—		61		—		87		—
Total investments	$	18,927	$	3,513	$	18,608	$	3,228	$	18,274	$	2,990

Net receivable/(payable) on investment activity	$	69			$	43			$	20

Effective duration (in years)	9.0				8.8				8.9
Weighted average rating	A				A				A

Investments - Fixed Maturity Securities by Credit Rating



September 30, 2020	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	$	—		$	—	$	50		$	1	$	519		$	55	$	5,246		$	814		$	15,782		$	2,061		$	2,068		$	27		$	23,665		$	2,958
States, municipalities and political subdivisions:
Tax-exempt	—			—		2,704			385		3,562			538		1,838			267			217			37			14			1			8,335			1,228
Taxable	—			—		348			40		1,587			306		862			189			92			2			—			—			2,889			537
Total states, municipalities and political subdivisions	—			—		3,052			425		5,149			844		2,700			456			309			39			14			1			11,224			1,765
Asset-backed:
RMBS	3,649			123		5			—		23			1		33			1			12			1			226			26			3,948			152
CMBS	27			1		318			19		732			42		279			(5		)	495			(25		)	199			(17		)	2,050			15
Other ABS	—			—		51			2		102			5		1,126			23			861			26			14			1			2,154			57
Total asset-backed	3,676			124		374			21		857			48		1,438			19			1,368			2			439			10			8,152			224
U.S. Treasury and obligations of government-sponsored enterprises	350			3		—			—		—			—		—			—			—			—			—			—			350			3
Foreign government	—			—		147			5		248			14		86			7			29			3			—			—			510			29
Redeemable preferred stock	—			—		—			—		—			—		—			—			—			—			—			—			—			—
Total fixed maturity securities	$	4,026		$	127	$	3,623		$	452	$	6,773		$	961	$	9,470		$	1,296		$	17,488		$	2,105		$	2,521		$	38		$	43,901		$	4,979

Percentage of total fixed maturity securities	9		%			8		%			15		%			22		%				40		%				6		%				100		%

Components of Net Investment Income



	Consolidated
Periods ended September 30	Three Months						Nine Months
(In millions)	2020			2019			2020			2019
Taxable fixed income securities	$	363		$	383		$	1,094		$	1,151
Tax-exempt fixed income securities	80			79			238			241
Total fixed income securities	443			462			1,332			1,392
Limited partnership and common stock investments	71			18			30			157
Other, net of investment expense	3			7			18			24
Pretax net investment income	$	517		$	487		$	1,380		$	1,573
Fixed income securities, after tax	$	364		$	378		$	1,092		$	1,140
Net investment income, after tax	421			399			1,130			1,284

Effective income yield for fixed income securities, pretax	4.5		%	4.8		%	4.6		%	4.8		%
Effective income yield for fixed income securities, after tax	3.7			3.9			3.7			3.9
Limited partnership and common stock return	4.1			0.9			1.7			7.7



	Property & Casualty and Corporate & Other
Periods ended September 30	Three Months						Nine Months
(In millions)	2020			2019			2020			2019
Taxable fixed income securities	$	224		$	248		$	683		$	755
Tax-exempt fixed income securities	9			6			22			17
Total fixed income securities	233			254			705			772
Limited partnership and common stock investments	71			18			30			157
Other, net of investment expense	5			8			23			28
Pretax net investment income	$	309		$	280		$	758		$	957
Fixed income securities, after tax	$	185		$	202		$	561		$	613
Net investment income, after tax	244			223			602			760

Effective income yield for fixed income securities, pretax	3.8		%	4.2		%	3.9		%	4.3		%
Effective income yield for fixed income securities, after tax	3.0			3.4			3.1			3.4



	Life & Group
Periods ended September 30	Three Months								Nine Months
(In millions)	2020				2019				2020				2019
Taxable fixed income securities	$	139			$	135			$	411			$	396
Tax-exempt fixed income securities	71				73				216				224
Total fixed income securities	210				208				627				620
Limited partnership and common stock investments	—				—				—				—
Other, net of investment expense	(2		)		(1		)		(5		)		(4		)
Pretax net investment income	$	208			$	207			$	622			$	616
Fixed income securities, after tax	$	179			$	176			$	531			$	527
Net investment income, after tax	177				176				528				524

Effective income yield for fixed income securities, pretax	5.6			%	5.6			%	5.6			%	5.6			%
Effective income yield for fixed income securities, after tax	4.7				4.8				4.7				4.8

Claim & Claim Adjustment Expense Reserve Rollforward



Three months ended September 30, 2020 (In millions)	Specialty			Commercial			International			P&C Operations			Life & Group			Corporate & Other			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	5,696		$	8,830		$	1,906		$	16,432		$	3,751		$	2,087		$	22,270
Ceded	877			811			252			1,940			142			1,920			4,002
Net	4,819			8,019			1,654			14,492			3,609			167			18,268

Net incurred claim & claim adjustment expenses	433			674			150			1,257			226			1			1,484
Net claim & claim adjustment expense payments	(376		)	(496		)	(134		)	(1,006		)	(234		)	(3		)	(1,243		)
Foreign currency translation adjustment and other	—			—			45			45			28			1			74

Claim & claim adjustment expense reserves, end of period
Net	4,876			8,197			1,715			14,788			3,629			166			18,583
Ceded	822			857			260			1,939			137			1,875			3,951
Gross	$	5,698		$	9,054		$	1,975		$	16,727		$	3,766		$	2,041		$	22,534



Nine months ended September 30, 2020 (In millions)	Specialty			Commercial			International			P&C Operations			Life & Group			Corporate & Other			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	5,238		$	8,656		$	1,876		$	15,770		$	3,716		$	2,234		$	21,720
Ceded	562			807			248			1,617			159			2,059			3,835
Net	4,676			7,849			1,628			14,153			3,557			175			17,885

Net incurred claim & claim adjustment expenses	1,346			1,898			480			3,724			773			3			4,500
Net claim & claim adjustment expense payments	(1,147		)	(1,551		)	(392		)	(3,090		)	(739		)	(12		)	(3,841		)
Foreign currency translation adjustment and other	1			1			(1		)	1			38			—			39

Claim & claim adjustment expense reserves, end of period
Net	4,876			8,197			1,715			14,788			3,629			166			18,583
Ceded	822			857			260			1,939			137			1,875			3,951
Gross	$	5,698		$	9,054		$	1,975		$	16,727		$	3,766		$	2,041		$	22,534

Life & Group Policyholder Reserves



September 30, 2020
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,866	$	9,678	$	12,544
Structured settlement annuities	547		—		547
Other	12		—		12
Total	3,425		9,678		13,103
Shadow adjustments	204		3,035		3,239
Ceded reserves	137		265		402
Total gross reserves	$	3,766	$	12,978	$	16,744



December 31, 2019
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,863	$	9,470	$	12,333
Structured settlement annuities	515		—		515
Other	12		—		12
Total	3,390		9,470		12,860
Shadow adjustments	167		2,615		2,782
Ceded reserves	159		226		385
Total gross reserves	$	3,716	$	12,311	$	16,027

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 and asbestos and environmental pollution. 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 I to the Consolidated Financial Statements within the December 31, 2019 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. 3^rd 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



Delaware	1-5823	36-6169860
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, Par value $2.50	"CNA"	New York Stock Exchange
		Chicago Stock Exchange



Exhibit No.		Description
99.1		CNA Financial Corporation press release, issued November 2, 2020, providing information on the third quarter 2020 results of operations.

99.2		CNA Financial Corporation financial supplement, posted on its website November 2, 2020, providing supplemental financial information on the third quarter 2020.

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



		CNA Financial Corporation
		(Registrant)

Date: November 2, 2020	By	/s/ Albert J. Miralles
		(Signature)
		Albert J. Miralles Executive Vice President and Chief Financial Officer