0000021175falseCommon Stock, Par value $2.50"CNA"00000211752021-02-082021-02-080000021175exch:XNYS2021-02-082021-02-080000021175exch:XCHI2021-02-082021-02-08

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported) February 8, 2021

CNA FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

1-5823

36-6169860

(State or other jurisdiction

(Commission

(IRS Employer

of incorporation)

File Number)

Identification No.)

151 N. Franklin

Chicago, IL 60606

(Address of principal executive offices) (Zip Code)

(312) 822-5000

(Registrant's telephone number, including area code)

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each 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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On February 8, 2021, the registrant issued a press release and posted on its website (www.cna.com) a financial supplement providing information on its results of operations for the fourth quarter and year ended December 31, 2020. The press release is furnished as Exhibit 99.1 and the financial supplement is furnished as Exhibit 99.2 to this Form 8-K.

The information under Item 2.02 and in Exhibits 99.1 and 99.2 in this Current Report is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information under Item 2.02 and in Exhibits 99.1 and 99.2 in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits:

See Exhibit Index.

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EXHIBIT INDEX

Exhibit No.						Description
99.1						CNA Financial Corporation press release, issued February 8, 2021, providing information on the fourth quarter and year ended December 31, 2020 results of operations.
99.2						CNA Financial Corporation financial supplement, posted on its website February 8, 2021, providing supplemental financial information on the fourth quarter and year ended December 31, 2020.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES

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

						CNA Financial Corporation
						(Registrant)
Date:  February 8, 2021			By			/s/ Albert J. Miralles
						(Signature)
						Albert J. Miralles Executive Vice President and Chief Financial Officer

FOR IMMEDIATE RELEASE

CNA FINANCIAL ANNOUNCES

Q4 2020 NET INCOME OF $1.42 PER SHARE AND CORE INCOME OF $1.23 PER SHARE
FULL YEAR 2020 NET INCOME OF $2.53 PER SHARE AND CORE INCOME OF $2.70 PER SHARE

Fourth Quarter

•Net income was $387 million versus $273 million in the prior year quarter; core income was a record $335 million versus $265 million in the prior year quarter.

•The P&C combined ratio was 93.5% compared with 95.6% in the prior year quarter, including 0.8 points of catastrophe loss impact compared with 2.9 points in the prior year quarter. No change to COVID-19 catastrophe loss estimate.

•The underlying combined ratio was 92.7% compared with 94.9% in the prior year quarter. The underlying loss ratio was 60.5% compared with 60.9% in the prior year quarter and the expense ratio was 32.0% compared with 33.7% in the prior year quarter.

•P&C segments, excluding third party captives, generated gross written premium growth of 15% and net written premium growth of 12% from strong rate of +12% and new business growth of 17%.

•Net investment income of $555 million pretax includes $114 million of income from LPs and common stock compared with $545 million of pretax net investment income which included $69 million of income from LPs and common stock in the prior year quarter.

Full Year

•Net income was $690 million versus $1 billion in the prior year; core income was $735 million versus $979 million in the prior year.

•The P&C combined ratio was 100.9% compared with 96.7% in the prior year, including 7.7 points of catastrophe loss impact compared with 2.6 points in the prior year.

•The underlying combined ratio was 93.1% compared with 94.8% in the prior year. The underlying loss ratio was 60.2% compared with 61.0% in the prior year and the expense ratio was 32.6% compared with 33.5% in the prior year.

•P&C segments, excluding third party captives, generated gross written premium growth of 9% and net written premium growth of 6% from strong rate of +11% and new business growth of 6%.

•Net investment income of $1,935 million pretax includes $144 million of income from LPs and common stock compared with $2,118 million of pretax net investment income which included $226 million of income from LPs and common stock in the prior year.

Shareholders' Equity

•Book value per share of $46.82; book value per share excluding AOCI of $43.86, a 6% increase from year-end 2019 adjusting for $3.48 of dividends per share.

•Increased quarterly dividend 3% to $0.38 per share; special dividend of $0.75 per share.

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CHICAGO, February 8, 2021 --- CNA Financial Corporation (NYSE: CNA) today announced fourth quarter 2020 net income of $387 million, or $1.42 per share, versus $273 million, or $1.00 per share, in the prior year quarter. Core income for the quarter was $335 million, or $1.23 per share, versus $265 million, or $0.97 per share, in the prior year quarter. Net income for the full year 2020 was $690 million, or $2.53 per share, versus $1.0 billion, or $3.67 per share, in the prior year. Core income for the full year 2020 was $735 million, or $2.70 per share, versus $979 million, or $3.59 per share, in the prior year.

Our Property & Casualty segments produced core income of $369 million for the fourth quarter of 2020, an increase of $32 million compared to the prior year quarter. The increase was primarily due to improved current accident year underwriting results.

Our Life & Group and Corporate & Other segments produced core income (loss) for the fourth quarter of 2020 of $26 million and $(60) million, respectively. Corporate & Other results include a $39 million after-tax non-economic charge related to asbestos and environmental pollution.

CNA Financial declared a quarterly dividend of $0.38 per share and a special dividend of $0.75 per share, payable March 11, 2021 to stockholders of record on February 22, 2021.

Further, as previously announced, the Company entered into an agreement with Cavello Bay Reinsurance Limited (Cavello), a subsidiary of Enstar Group Limited, under which Cavello will reinsure a legacy portfolio of excess workers’ compensation policies. The transaction closed on February 5, 2021.

			Results for the Three Months Ended December 31												Results for the Year Ended December 31
($ millions, except per share data)			2020						2019						2020						2019
Net income			$	387					$	273					$	690					$	1,000
Core income (a)			335						265						735						979
Net income per diluted share			$	1.42					$	1.00					$	2.53					$	3.67
Core income per diluted share			1.23						0.97						2.70						3.59

			December 31, 2020									December 31, 2019
Book value per share			$			46.82						$			45.00
Book value per share excluding AOCI						43.86									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 produced record core income in the fourth quarter as we continued to leverage the hardening market conditions achieving 12% in rate increases and 12% growth in net written premium as well as improving both our underlying and total combined ratios by over two points. We are well positioned to extend our strong execution in the favorable market conditions that we expect to continue in 2021,” said Dino E. Robusto, Chairman & Chief Executive Officer of CNA Financial Corporation.

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Property & Casualty Operations

			Results for the Three Months Ended December 31																		Results for the Year Ended December 31
($ millions)			2020									2019									2020									2019
Gross written premiums ex. 3rd party captives			$	2,169								$	1,892								$	8,422								$	7,735
GWP ex. 3rd party captives change (% year over year)			15			%															9			%
Net written premiums			$	1,952								$	1,746								$	7,566								$	7,134
NWP change (% year over year)			12			%															6			%
Net investment income			$	324								$	336								$	1,072								$	1,273
Core income			369									337									834									1,190
Loss ratio excluding catastrophes and development			60.5			%						60.9			%						60.2			%						61.0			%
Effect of catastrophe impacts			0.8									2.9									7.7									2.6
Effect of development-related items			—									(2.2)									0.1									(0.7)
Loss ratio			61.3			%						61.6			%						68.0			%						62.9			%
Expense ratio			32.0			%						33.7			%						32.6			%						33.5			%
Combined ratio			93.5			%						95.6			%						100.9			%						96.7			%
Combined ratio excluding catastrophes and development			92.7			%						94.9			%						93.1			%						94.8			%

•The fourth quarter combined ratio excluding catastrophes and development improved 2.2 points as compared with the prior year quarter. The expense ratio improved 1.7 points driven by higher net earned premiums and lower underwriting expenses. The underlying loss ratio improved 0.4 points.

•The fourth quarter combined ratio improved 2.1 points as compared with the prior year quarter. Net catastrophe losses were $14 million, or 0.8 points of the loss ratio in the quarter compared with $51 million, or 2.9 points of the loss ratio, for the prior year quarter. Net prior period development had no impact on the loss ratio in the current quarter compared with 2.2 points of favorable development decreasing the loss ratio in the prior year quarter.

•In the fourth quarter, P&C segments, excluding third party captives, generated gross written premium growth of 15% and net written premium growth of 12% driven by higher rate and new business.

•For the full year, the combined ratio excluding catastrophes and development improved 1.7 points as compared with the prior year.  The expense ratio improved 0.9 points driven by higher net earned premiums and lower underwriting expenses. The underlying loss ratio improved 0.8 points.

•For the full year, the combined ratio increased 4.2 points as compared with the prior year.  Net catastrophe losses were $550 million, or 7.7 points of the loss ratio for the full year compared with $179 million, or 2.6 points of the loss ratio, for the prior year. Unfavorable net prior period development increased the loss ratio by 0.1 points in the current year compared with 0.7 points of favorable development decreasing the loss ratio in the prior year.

•For the full year, P&C segments, excluding third party captives, generated gross written premium growth of 9% and net written premium growth of 6% driven by higher rate and new business.

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Business Operating Highlights

Specialty

			Results for the Three Months Ended December 31																		Results for the Year Ended December 31
($ millions)			2020									2019									2020									2019
Gross written premiums ex. 3rd party captives			$	883								$	752								$	3,296								$	3,015
GWP ex. 3rd party captives change (% year over year)			17			%															9			%
Net written premiums			$	809								$	705								$	3,040								$	2,848
NWP change (% year over year)			15			%															7			%
Core income			$	181								$	188								$	535								$	671
Loss ratio excluding catastrophes and development			60.0			%						60.7			%						59.9			%						60.3			%
Effect of catastrophe impacts			0.7									(0.2)									4.3									0.5
Effect of development-related items			(1.9)									(4.9)									(2.1)									(3.3)
Loss ratio			58.8			%						55.6			%						62.1			%						57.5			%
Expense ratio			30.4			%						32.4			%						31.3			%						32.5			%
Combined ratio			89.4			%						88.2			%						93.5			%						90.2			%
Combined ratio excluding catastrophes and development			90.6			%						93.3			%						91.3			%						93.0			%

•The combined ratio excluding catastrophes and development improved 2.7 points for the fourth quarter of 2020 as compared with the prior year quarter. The expense ratio improved 2.0 points driven by higher net earned premiums and lower underwriting expenses. The underlying loss ratio improved 0.7 points.

•The combined ratio increased 1.2 points for the fourth quarter of 2020 as compared with the prior year quarter. Net catastrophe losses were $5 million, or 0.7 points of the loss ratio in the quarter compared with $(1) million, or (0.2) points of the loss ratio, for the prior year quarter. Favorable net prior period development improved the loss ratio by 1.9 points in the quarter compared with 4.9 points of improvement in the prior year quarter.

•Gross written premiums, excluding third party captives, grew 17% and net written premiums grew 15% for the fourth quarter of 2020 driven by strong rate and higher new business.

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Commercial

			Results for the Three Months Ended December 31																		Results for the Year Ended December 31
($ millions)			2020									2019									2020									2019
Gross written premiums ex. 3rd party captives			$	975								$	867								$	3,993								$	3,609
GWP ex. 3rd party captives change (% year over year)			13			%															11			%
Net written premiums			$	862								$	779								$	3,565								$	3,315
NWP change (% year over year)			11			%															8			%
Core income			$	165								$	133								$	261								$	489
Loss ratio excluding catastrophes and development			61.1			%						61.4			%						60.6			%						61.7			%
Effect of catastrophe impacts			0.5									6.5									10.7									4.9
Effect of development-related items			1.7									(1.3)									2.1									0.7
Loss ratio			63.3			%						66.6			%						73.4			%						67.3			%
Expense ratio			32.7			%						33.6			%						33.0			%						32.9			%
Combined ratio			96.2			%						100.6			%						106.9			%						100.8			%
Combined ratio excluding catastrophes and development			94.0			%						95.4			%						94.1			%						95.2			%

•The combined ratio excluding catastrophes and development improved 1.4 points for the fourth quarter of 2020 as compared with the prior year quarter. The expense ratio improved 0.9 points driven by higher net earned premiums. The underlying loss ratio improved 0.3 points.

•The combined ratio improved 4.4 points for the fourth quarter of 2020 as compared with the prior year quarter. Net catastrophe losses were $4 million, or 0.5 points of the loss ratio in the fourth quarter of 2020 compared with $52 million, or 6.5 points of the loss ratio, for the prior year quarter. Unfavorable net prior period development increased the loss ratio by 1.7 points in the quarter, with more than half from unfavorable premium development, compared with 1.3 points of favorable development decreasing the loss ratio in the prior year quarter.

•Gross written premiums, excluding third party captives, grew 13% and net written premiums grew 11% for the fourth quarter of 2020 driven by higher new business and favorable rate.

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International

			Results for the Three Months Ended December 31																		Results for the Year Ended December 31
($ millions)			2020									2019									2020									2019
Gross written premiums			$	311								$	274								$	1,133								$	1,111
GWP change (% year over year)			14			%															2			%
Net written premiums			$	281								$	262								$	961								$	971
NWP change (% year over year)			7			%															(1)			%
Core income			$	23								$	16								$	38								$	30
Loss ratio excluding catastrophes and development			60.1			%						59.7			%						60.1			%						60.9			%
Effect of catastrophe impacts			2.1									—									7.1									1.1
Effect of development-related items			(0.3)									2.6									(0.3)									2.1
Loss ratio			61.9			%						62.3			%						66.9			%						64.1			%
Expense ratio			35.0			%						38.0			%						35.5			%						37.7			%
Combined ratio			96.9			%						100.3			%						102.4			%						101.8			%
Combined ratio excluding catastrophes and development			95.1			%						97.7			%						95.6			%						98.6			%

•The combined ratio excluding catastrophes and development improved 2.6 points for the fourth quarter of 2020 as compared with the prior year quarter. The expense ratio improved 3.0 points driven by lower acquisition and underwriting expenses. The underlying loss ratio increased 0.4 points.

•The combined ratio improved 3.4 points for the fourth quarter of 2020 as compared with the prior year quarter. Net catastrophe losses were $5 million, or 2.1 points of the loss ratio in the fourth quarter of 2020, compared with no net catastrophe losses recorded for the prior year quarter. Favorable net prior year development improved the loss ratio by 0.3 points in the quarter compared with 2.6 points of unfavorable development increasing the loss ratio in the prior year quarter.

•Excluding currency fluctuations, gross written premiums for International increased 11% and net written premiums increased 5% for the fourth quarter of 2020 as compared with the prior year quarter driven by growth in Canada and Europe.

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Life & Group

			Results for the Three Months Ended December 31																		Results for the Year Ended December 31
($ millions)			2020									2019									2020									2019
Net earned premiums			$	124								$	130								$	504								$	520
Net investment income			229									204									851									820
Core income (loss)			26									(4)									9									(109)

Due to the recognition of the premium deficiency and resetting of actuarial assumptions in the third quarter of 2020, the operating results for our long term care business reflect the variance between actual experience and the expected results contemplated in our best estimate reserves. Core results improved $30 million for the fourth quarter of 2020 as compared with the prior year quarter driven by better than expected morbidity in the long term care business and higher net investment income.

Corporate & Other

			Results for the Three Months Ended December 31																		Results for the Year Ended December 31
($ millions)			2020									2019									2020									2019
Net investment income			$	2								$	5								$	12								$	25
Interest expense			28									32									122									131
Core loss			(60)									(68)									(108)									(102)

Core loss improved $8 million for the fourth quarter of 2020 as compared with the prior year quarter. The application of retroactive reinsurance accounting to additional cessions to the A&EP Loss Portfolio Transfer in both periods resulted in after-tax non-economic charges of $39 million and $48 million in 2020 and 2019, respectively. The additional cessions in those periods were $100 million and $125 million, respectively.

Net Investment Income

			Results for the Three Months Ended December 31																		Results for the Year Ended December 31
			2020									2019									2020									2019
Net investment income			$	555								$	545								$	1,935								$	2,118

Net investment income increased $10 million for the fourth quarter of 2020 as compared with the prior year quarter. The increase was driven by limited partnership and common stock investments, which returned 6.5%, or $114 million for the fourth quarter of 2020 compared with 3.7%, or $69 million in the prior year quarter. These results were partially offset by lower yields in our fixed income portfolio.

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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. 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.

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Reconciliation of GAAP Measures to Non-GAAP Measures

This press release also contains financial measures that are not in accordance with GAAP.  Management utilizes these financial measures to monitor the Company's insurance operations and investment portfolio. The Company believes the presentation of these measures provides investors with a better understanding of the significant factors that comprise the Company's operating performance. Reconciliations of these measures to the most comparable GAAP measures follow below.

Reconciliation of Net Income (Loss) to Core Income (Loss)

Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses and any cumulative effects of changes in accounting guidance. The calculation of core income (loss) excludes net investment gains or losses because net investment gains or losses are generally driven by economic factors that are not necessarily reflective of our primary operations. Management monitors core income (loss) for each business segment to assess segment performance. Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure.

			Results for the Three Months Ended December 31												Results for the Year Ended December 31
($ millions)			2020						2019						2020						2019
Net income			$	387					$	273					$	690					$	1,000
Less: Net investment gains (losses)			52						8						(45)						21
Core income			$	335					$	265					$	735					$	979

Reconciliation of Net Income (Loss) per Diluted Share to Core Income (Loss) per Diluted Share

Core income (loss) per diluted share provides management and investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core income (loss). Core income (loss) per diluted share is core income (loss) on a per diluted share basis.

			Results for the Three Months Ended December 31												Results for the Year Ended December 31
			2020						2019						2020						2019
Net income per diluted share			$	1.42					$	1.00					$	2.53					$	3.67
Less: Net investment gains (losses)			0.19						0.03						(0.17)						0.08
Core income per diluted share			$	1.23					$	0.97					$	2.70					$	3.59

Reconciliation of Book Value per Share to Book Value per Share Excluding AOCI

Book value per share excluding AOCI allows management and investors to analyze the amount of the Company's net worth primarily attributable to the Company's business operations. The Company believes this measurement is useful as it reduces the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.

			December 31, 2020						December 31, 2019
Book value per share			$	46.82					$	45.00
Less: Per share impact of AOCI			2.96						0.19
Book value per share excluding AOCI			$	43.86					$	44.81

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Calculation of Return on Equity and Core Return on Equity

Core return on equity provides management and investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to its business operations.

			Results for the Three Months Ended December 31												Results for the Year Ended December 31
($ millions)			2020						2019						2020						2019
Annualized net income			$	1,546					$	1,090					$	690					$	1,000
Average stockholders' equity including AOCI (a)			12,364						12,169						12,461						11,716
Return on equity			12.5			%			9.0			%			5.5			%			8.5			%
Annualized core income			$	1,340					$	1,060					$	735					$	979
Average stockholders' equity excluding AOCI (a)			11,757						12,073						12,033						12,129
Core return on equity			11.4			%			8.8			%			6.1			%			8.1			%

(a)Average stockholders' equity is calculated using a simple average of the beginning and ending balances for the period.

For additional information, please refer to CNA's most recent 10-K on file with the Securities and Exchange Commission, as well as the financial supplement, available at www.cna.com.

Forward-Looking Statements

This press release includes statements that relate to anticipated future events (forward-looking statements) rather than actual present conditions or historical events. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. Forward-looking statements, by their nature, are subject to a variety of inherent risks and uncertainties that could cause actual results to differ materially from the results projected. Many of these risks and uncertainties cannot be controlled by CNA. For a detailed description of these risks and uncertainties please refer to CNA’s filings with the Securities and Exchange Commission, available at www.cna.com.

Any forward-looking statements made in this press release are made by CNA as of the date of this press release. Further, CNA does not have any obligation to update or revise any forward-looking statement contained in this press release, even if CNA’s expectations or any related events, conditions or circumstances change.

Any descriptions of coverage under CNA policies or programs in this press release are provided for convenience only and are not to be relied upon with respect to questions of coverage, exclusions or limitations. With regard to all such matters, the terms and provisions of relevant insurance policies are primary and controlling. In addition, please note that all coverages may not be available in all states.

“CNA" is a registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the "CNA" trademark in connection with insurance underwriting and claims activities. Copyright © 2021 CNA. All rights reserved.

# # #

10

CNA Financial Corporation

Supplemental Financial Information

December 31, 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 and Quarterly Reports on Form 10-Q.

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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

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Statements of Operations

Periods ended December 31			Three Months																					Twelve Months
(In millions)			2020						2019						Change									2020						2019						Change
Revenues:
Net earned premiums			$	1,977					$	1,911					3			%						$	7,649					$	7,428					3			%
Net investment income			555						545						2									1,935						2,118						(9)
Net investment gains (losses)			66						9															(54)						29
Non-insurance warranty revenue			326						303															1,252						1,161
Other revenues			7						9															26						31
Total revenues			2,931						2,777						6									10,808						10,767						—
Claims, Benefits and Expenses:
Insurance claims and policyholders' benefits			1,487						1,483															6,170						5,806
Amortization of deferred acquisition costs			364						358															1,410						1,383
Non-insurance warranty expense			300						281															1,159						1,082
Other operating expenses			274						289															1,126						1,142
Interest			28						31															122						131
Total claims, benefits and expenses			2,453						2,442						—									9,987						9,544						(5)
Income (loss) before income tax			478						335															821						1,223
Income tax (expense) benefit			(91)						(62)															(131)						(223)
Net income (loss)			$	387					$	273					42			%						$	690					$	1,000					(31)			%

1

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

Periods ended December 31			Three Months															Twelve Months
(In millions, except per share data)			2020						2019									2020						2019
Components of Income (Loss)
Core income (loss)			$	335					$	265								$	735					$	979
Net investment gains (losses)			52						8									(45)						21
Net income (loss)			$	387					$	273								$	690					$	1,000
Diluted Earnings (Loss) Per Common Share
Core income (loss)			$	1.23					$	0.97								$	2.70					$	3.59
Net investment gains (losses)			0.19						0.03									(0.17)						0.08
Diluted earnings (loss) per share			$	1.42					$	1.00								$	2.53					$	3.67
Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic			271.7						271.5									271.6						271.6
Diluted			272.6						272.6									272.4						272.5
Return on Equity
Net income (loss) (1)			12.5			%			9.0			%						5.5			%			8.5			%
Core income (loss) (2)			11.4						8.8									6.1						8.1

(1) Annualized net income (loss) divided by the average stockholders' equity including accumulated other comprehensive income (loss) (AOCI) for the period. Average equity including AOCI is calculated using a simple average of the beginning and ending balances for the period.

(2) Annualized core income (loss) divided by the average stockholders' equity excluding AOCI for the period. Average equity excluding AOCI is calculated using a simple average of the beginning and ending balances for the period.

2

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Selected Balance Sheet Data and Statement of Cash Flows Data

(In millions, except per share data)			December 31, 2020						December 31, 2019
Total investments			$	50,293					$	47,744
Reinsurance receivables, net of allowance for uncollectible receivables			4,457						4,179
Total assets			64,026						60,612
Insurance reserves			41,143						38,614
Debt			2,776						2,679
Total liabilities			51,319						48,397
Accumulated other comprehensive income (loss) (1)			803						51
Total stockholders' equity			12,707						12,215
Book value per common share			$	46.82					$	45.00
Book value per common share excluding AOCI			$	43.86					$	44.81
Outstanding shares of common stock (in millions of shares)			271.4						271.4
Statutory capital and surplus - Combined Continental Casualty Companies (2)			$	10,708					$	10,787

Three months ended December 31			2020						2019
Net cash flows provided (used) by operating activities			$	367					$	160
Net cash flows provided (used) by investing activities			(298)						(165)
Net cash flows provided (used) by financing activities			(101)						(101)
Net cash flows provided (used) by operating, investing and financing activities			$	(32)					$	(106)

Twelve months ended December 31			2020						2019
Net cash flows provided (used) by operating activities			$	1,775					$	1,140
Net cash flows provided (used) by investing activities			(705)						(225)
Net cash flows provided (used) by financing activities			(902)						(988)
Net cash flows provided (used) by operating, investing and financing activities			$	168					$	(73)

(1) As of December 31, 2020 and 2019, the net unrealized gains on investments included in AOCI were net of after-tax Shadow Adjustments of $2,773 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 December 31, 2020 is preliminary.

3

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Property & Casualty - Results of Operations

Periods ended December 31			Three Months																					Twelve Months
(In millions)			2020						2019						Change									2020						2019						Change
Gross written premiums			$	3,143					$	2,851					10			%						$	12,399					$	11,704					6			%
Gross written premiums ex. 3rd party captives			2,169						1,892						15									8,422						7,735						9
Net written premiums			1,952						1,746						12									7,566						7,134						6
Net earned premiums			1,853						1,780						4									7,146						6,909						3
Net investment income			324						336															1,072						1,273
Non-insurance warranty revenue			326						303															1,252						1,161
Other revenues			7						9															26						30
Total operating revenues			2,510						2,428						3									9,496						9,373						1
Insurance claims and policyholders' benefits			1,138						1,102															4,878						4,372
Amortization of deferred acquisition costs			364						358															1,410						1,383
Non-insurance warranty expense			300						281															1,159						1,082
Other insurance related expenses			229						244															921						927
Other expenses			11						10															77						88
Total claims, benefits and expenses			2,042						1,995						(2)									8,445						7,852						(8)
Core income (loss) before income tax			468						433															1,051						1,521
Income tax (expense) benefit on core income (loss)			(99)						(96)															(217)						(331)
Core income (loss)			$	369					$	337					9			%						$	834					$	1,190					(30)			%
Other Performance Metrics
Underwriting gain (loss)			$	122					$	76					61			%						$	(63)					$	227					(128)			%
Loss & LAE ratio			61.3			%			61.6			%			0.3			pts						68.0			%			62.9			%			(5.1)			pts
Expense ratio			32.0						33.7						1.7									32.6						33.5						0.9
Dividend ratio			0.2						0.3						0.1									0.3						0.3						—
Combined ratio			93.5			%			95.6			%			2.1			pts						100.9			%			96.7			%			(4.2)			pts
Combined ratio excluding catastrophes and development			92.7			%			94.9			%			2.2			pts						93.1			%			94.8			%			1.7			pts
Net accident year catastrophe losses incurred			$	14					$	51														$	550					$	179
Effect on loss & LAE ratio			0.8			%			2.9			%			2.1			pts						7.7			%			2.6			%			(5.1)			pts
Net prior year development and other: (favorable) / unfavorable			$	5					$	(37)														$	11					$	(44)
Effect on loss & LAE ratio			—			%			(2.2)			%			(2.2)			pts						0.1			%			(0.7)			%			(0.8)			pts
Rate			12			%			7			%			5			pts						11			%			5			%			6			pts
Renewal premium change			11			%			8			%			3			pts						10			%			6			%			4			pts
Retention			85			%			84			%			1			pts						83			%			84			%			(1)			pts
New business			$	372					$	319					17			%						$	1,395					$	1,322					6			%

4

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Specialty - Results of Operations

Periods ended December 31			Three Months																					Twelve Months
(In millions)			2020						2019						Change									2020						2019						Change
Gross written premiums			$	1,849					$	1,709					8			%						$	7,180					$	6,900					4			%
Gross written premiums ex. 3rd party captives			883						752						17									3,296						3,015						9
Net written premiums			809						705						15									3,040						2,848						7
Net earned premiums			759						712						7									2,883						2,773						4
Net investment income			134						146															449						556
Non-insurance warranty revenue			326						303															1,252						1,161
Other revenues			—						—															1						1
Total operating revenues			1,219						1,161						5									4,585						4,491						2
Insurance claims and policyholders' benefits			447						398															1,795						1,600
Amortization of deferred acquisition costs			159						156															621						610
Non-insurance warranty expense			300						281															1,159						1,082
Other insurance related expenses			72						75															280						292
Other expenses			13						11															50						48
Total claims, benefits and expenses			991						921						(8)									3,905						3,632						(8)
Core income (loss) before income tax			228						240															680						859
Income tax (expense) benefit on core income (loss)			(47)						(52)															(145)						(188)
Core income (loss)			$	181					$	188					(4)			%						$	535					$	671					(20)			%
Other Performance Metrics
Underwriting gain (loss)			$	81					$	83					(2)			%						$	187					$	271					(31)			%
Loss & LAE ratio			58.8			%			55.6			%			(3.2)			pts						62.1			%			57.5			%			(4.6)			pts
Expense ratio			30.4						32.4						2.0									31.3						32.5						1.2
Dividend ratio			0.2						0.2						—									0.1						0.2						0.1
Combined ratio			89.4			%			88.2			%			(1.2)			pts						93.5			%			90.2			%			(3.3)			pts
Combined ratio excluding catastrophes and development			90.6			%			93.3			%			2.7			pts						91.3			%			93.0			%			1.7			pts
Net accident year catastrophe losses incurred			$	5					$	(1)														$	125					$	15
Effect on loss & LAE ratio			0.7			%			(0.2)			%			(0.9)			pts						4.3			%			0.5			%			(3.8)			pts
Net prior year development and other: (favorable) / unfavorable			$	(14)					$	(34)														$	(59)					$	(92)
Effect on loss & LAE ratio			(1.9)			%			(4.9)			%			(3.0)			pts						(2.1)			%			(3.3)			%			(1.2)			pts
Rate			13			%			8			%			5			pts						12			%			5			%			7			pts
Renewal premium change			12			%			10			%			2			pts						11			%			8			%			3			pts
Retention			86			%			85			%			1			pts						86			%			88			%			(2)			pts
New business			$	114					$	93					23			%						$	389					$	367					6			%

5

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Commercial - Results of Operations

Periods ended December 31			Three Months																					Twelve Months
(In millions)			2020						2019						Change									2020						2019						Change
Gross written premiums			$	983					$	868					13			%						$	4,086					$	3,693					11			%
Gross written premiums ex. 3rd party captives			975						867						13									3,993						3,609						11
Net written premiums			862						779						11									3,565						3,315						8
Net earned premiums			853						823						4									3,323						3,162						5
Net investment income			176						174															565						654
Other revenues			7						9															25						29
Total operating revenues			1,036						1,006						3									3,913						3,845						2
Insurance claims and policyholders' benefits			542						552															2,454						2,148
Amortization of deferred acquisition costs			151						146															592						537
Other insurance related expenses			127						133															505						505
Other expenses			8						5															34						32
Total claims, benefits and expenses			828						836						1									3,585						3,222						(11)
Core income (loss) before income tax			208						170															328						623
Income tax (expense) benefit on core income (loss)			(43)						(37)															(67)						(134)
Core income (loss)			$	165					$	133					24			%						$	261					$	489					(47)			%
Other Performance Metrics
Underwriting gain (loss)			$	33					$	(8)					N/M			%						$	(228)					$	(28)					N/M			%
Loss & LAE ratio			63.3			%			66.6			%			3.3			pts						73.4			%			67.3			%			(6.1)			pts
Expense ratio			32.7						33.6						0.9									33.0						32.9						(0.1)
Dividend ratio			0.2						0.4						0.2									0.5						0.6						0.1
Combined ratio			96.2			%			100.6			%			4.4			pts						106.9			%			100.8			%			(6.1)			pts
Combined ratio excluding catastrophes and development			94.0			%			95.4			%			1.4			pts						94.1			%			95.2			%			1.1			pts
Net accident year catastrophe losses incurred			$	4					$	52														$	358					$	154
Effect on loss & LAE ratio			0.5			%			6.5			%			6.0			pts						10.7			%			4.9			%			(5.8)			pts
Net prior year development and other: (favorable) / unfavorable			$	19					$	(9)														$	73					$	28
Effect on loss & LAE ratio			1.7			%			(1.3)			%			(3.0)			pts						2.1			%			0.7			%			(1.4)			pts
Rate			10			%			5			%			5			pts						10			%			4			%			6			pts
Renewal premium change			8			%			6			%			2			pts						8			%			6			%			2			pts
Retention			85			%			87			%			(2)			pts						84			%			86			%			(2)			pts
New business			$	197					$	161					22			%						$	761					$	682					12			%

6

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International - Results of Operations

Periods ended December 31			Three Months																					Twelve Months
(In millions)			2020						2019						Change									2020						2019						Change
Gross written premiums			$	311					$	274					14			%						$	1,133					$	1,111					2			%
Net written premiums			281						262						7									961						971						(1)
Net earned premiums			241						245						(2)									940						974						(3)
Net investment income			14						16															58						63
Other revenues			—						—															—						—
Total operating revenues			255						261						(2)									998						1,037						(4)
Insurance claims and policyholders' benefits			149						152															629						624
Amortization of deferred acquisition costs			54						56															197						236
Other insurance related expenses			30						36															136						130
Other expenses			(10)						(6)															(7)						8
Total claims, benefits and expenses			223						238						6									955						998						4
Core income (loss) before income tax			32						23															43						39
Income tax (expense) benefit on core income (loss)			(9)						(7)															(5)						(9)
Core income (loss)			$	23					$	16					44			%						$	38					$	30					27			%
Other Performance Metrics
Underwriting gain (loss)			$	8					$	1					N/M			%						$	(22)					$	(16)					(38)			%
Loss & LAE ratio			61.9			%			62.3			%			0.4			pts						66.9			%			64.1			%			(2.8)			pts
Expense ratio			35.0						38.0						3.0									35.5						37.7						2.2
Dividend ratio			—						—						—									—						—						—
Combined ratio			96.9			%			100.3			%			3.4			pts						102.4			%			101.8			%			(0.6)			pts
Combined ratio excluding catastrophes and development			95.1			%			97.7			%			2.6			pts						95.6			%			98.6			%			3.0			pts
Net accident year catastrophe losses incurred			$	5					$	—														$	67					$	10
Effect on loss & LAE ratio			2.1			%			—			%			(2.1)			pts						7.1			%			1.1			%			(6.0)			pts
Net prior year development and other: (favorable) / unfavorable			$	—					$	6														$	(3)					$	20
Effect on loss & LAE ratio			(0.3)			%			2.6			%			2.9			pts						(0.3)			%			2.1			%			2.4			pts
Rate			18			%			13			%			5			pts						14			%			8			%			6			pts
Renewal premium change			16			%			14			%			2			pts						12			%			7			%			5			pts
Retention			81			%			72			%			9			pts						73			%			71			%			2			pts
New business			$	61					$	65					(6)			%						$	245					$	273					(10)			%

7

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Life & Group - Results of Operations

Periods ended December 31			Three Months															Twelve Months
(In millions)			2020						2019									2020						2019
Net earned premiums			$	124					$	130								$	504					$	520
Net investment income			229						204									851						820
Other revenues			—						—									—						—
Total operating revenues			353						334									1,355						1,340
Insurance claims and policyholders' benefits			303						323									1,286						1,416
Other insurance related expenses			30						28									109						115
Other expenses			1						3									7						8
Total claims, benefits and expenses			334						354									1,402						1,539
Core income (loss) before income tax			19						(20)									(47)						(199)
Income tax (expense) benefit on core income (loss)			7						16									56						90
Core income (loss)			$	26					$	(4)								$	9					$	(109)

8

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Corporate & Other - Results of Operations

Periods ended December 31			Three Months															Twelve Months
(In millions)			2020						2019									2020						2019
Net earned premiums			$	—					$	1								$	(1)					$	(1)
Net investment income			2						5									12						25
Other revenues			—						—									—						1
Total operating revenues			2						6									11						25
Insurance claims and policyholders' benefits			46						58									6						18
Other insurance related expenses			—						—									(2)						(4)
Other expenses			31						35									136						139
Total claims, benefits and expenses			77						93									140						153
Core income (loss) before income tax			(75)						(87)									(129)						(128)
Income tax (expense) benefit on core income (loss)			15						19									21						26
Core income (loss)			$	(60)					$	(68)								$	(108)					$	(102)

9

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Investment Summary - Consolidated

			December 31, 2020												September 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			$	24,352					$	3,556					$	23,665					$	2,958					$	22,069					$	2,260
States, municipalities and political subdivisions:
Tax-exempt			8,499						1,311						8,335						1,228						7,804						1,155
Taxable			3,093						552						2,889						537						2,848						404
Total states, municipalities and political subdivisions			11,592						1,863						11,224						1,765						10,652						1,559
Asset-backed:
RMBS			3,587						145						3,948						152						4,519						132
CMBS			1,967						51						2,050						15						2,346						81
Other ABS			2,251						72						2,154						57						1,962						37
Total asset-backed			7,805						268						8,152						224						8,827						250
U.S. Treasury and obligations of government-sponsored enterprises			338						(1)						350						3						145						(1)
Foreign government			544						32						510						29						504						13
Redeemable preferred stock			—						—						—						—						10						—
Total fixed maturity securities			44,631						5,718						43,901						4,979						42,207						4,081
Equities:
Common stock			195						—						173						—						142						—
Non-redeemable preferred stock			797						—						746						—						723						—
Total equities			992						—						919						—						865						—
Limited partnership investments			1,619						—						1,567						—						1,752						—
Other invested assets			76						—						69						—						65						—
Mortgage loans			1,068						—						1,088						—						994						—
Short term investments			1,907						—						1,462						—						1,861						—
Total investments			$	50,293					$	5,718					$	49,006					$	4,979					$	47,744					$	4,081
Net receivable/(payable) on investment activity			$	22											$	(1)											$	37
Effective duration (in years)			6.3												6.3												6.0
Weighted average rating			A												A												A

RMBS - Residential mortgage-backed securities

CMBS - Commercial mortgage-backed securities

Other ABS - Other asset-backed securities

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Investment Summary - Property & Casualty and Corporate & Other

			December 31, 2020												September 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			$	15,560					$	1,348					$	14,918					$	1,081					$	13,925					$	738
States, municipalities and political subdivisions:
Tax-exempt			1,711						114						1,308						66						646						37
Taxable			1,286						110						1,025						97						1,077						71
Total states, municipalities and political subdivisions			2,997						224						2,333						163						1,723						108
Asset-backed:
RMBS			3,507						140						3,862						147						4,441						128
CMBS			1,879						46						1,961						12						2,264						77
Other ABS			2,056						52						1,971						33						1,842						29
Total asset-backed			7,442						238						7,794						192						8,547						234
U.S. Treasury and obligations of government-sponsored enterprises			327						(1)						342						3						143						(1)
Foreign government			529						29						496						27						498						12
Redeemable preferred stock			—						—						—						—						5						—
Total fixed maturity securities			26,855						1,838						25,883						1,466						24,841						1,091
Equities:
Common stock			195						—						173						—						142						—
Non-redeemable preferred stock			202						—						175						—						181						—
Total equities			397						—						348						—						323						—
Limited partnership investments			896						—						1,567						—						1,752						—
Other invested assets			76						—						69						—						65						—
Mortgage loans			782						—						792						—						715						—
Short term investments			1,772						—						1,420						—						1,774						—
Total investments			$	30,778					$	1,838					$	30,079					$	1,466					$	29,470					$	1,091
Net receivable/(payable) on investment activity			$	10											$	(70)											$	17
Effective duration (in years)			4.5												4.5												4.1
Weighted average rating			A												A												A-

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Investment Summary - Life & Group

			December 31, 2020												September 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			$	8,792					$	2,208					$	8,747					$	1,877					$	8,144					$	1,522
States, municipalities and political subdivisions:
Tax-exempt			6,788						1,197						7,027						1,162						7,158						1,118
Taxable			1,807						442						1,864						440						1,771						333
Total states, municipalities and political subdivisions			8,595						1,639						8,891						1,602						8,929						1,451
Asset-backed:
RMBS			80						5						86						5						78						4
CMBS			88						5						89						3						82						4
Other ABS			195						20						183						24						120						8
Total asset-backed			363						30						358						32						280						16
U.S. Treasury and obligations of government-sponsored enterprises			11						—						8						—						2						—
Foreign government			15						3						14						2						6						1
Redeemable preferred stock			—						—						—						—						5						—
Total fixed maturity securities			17,776						3,880						18,018						3,513						17,366						2,990
Equities:
Common stock			—						—						—						—						—						—
Non-redeemable preferred stock			595						—						571						—						542						—
Total equities			595						—						571						—						542						—
Limited partnership investments			723						—						—						—						—						—
Other invested assets			—						—						—						—						—						—
Mortgage loans			286						—						296						—						279						—
Short term investments			135						—						42						—						87						—
Total investments			$	19,515					$	3,880					$	18,927					$	3,513					$	18,274					$	2,990
Net receivable/(payable) on investment activity			$	12											$	69											$	20
Effective duration (in years)			9.2												9.0												8.9
Weighted average rating			A												A												A

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Investments - Fixed Maturity Securities by Credit Rating

December 31, 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			$	—					$	—					$	53					$	1					$	527					$	60					$	5,256					$	855					$	16,257					$	2,502					$	2,259					$	138					$	24,352					$	3,556
States, municipalities and political subdivisions			—						—						3,024						426						5,512						886						2,704						493						337						57						15						1						11,592						1,863
Asset-backed:
RMBS			3,308						118						4						—						22						1						74						6						11						1						168						19						3,587						145
CMBS			26						—						331						20						714						48						264						2						478						(10)						154						(9)						1,967						51
Other ABS			—						—						62						2						110						2						1,157						25						895						43						27						—						2,251						72
Total asset-backed			3,334						118						397						22						846						51						1,495						33						1,384						34						349						10						7,805						268
U.S. Treasury and obligations of government-sponsored enterprises			338						(1)						—						—						—						—						—						—						—						—						—						—						338						(1)
Foreign government			—						—						153						5						274						15						88						9						29						3						—						—						544						32
Redeemable preferred stock			—						—						—						—						—						—						—						—						—						—						—						—						—						—
Total fixed maturity securities			$	3,672					$	117					$	3,627					$	454					$	7,159					$	1,012					$	9,543					$	1,390					$	18,007					$	2,596					$	2,623					$	149					$	44,631					$	5,718
Percentage of total fixed maturity securities			8		%										8		%										16		%										22		%										40		%										6		%										100		%

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Components of Net Investment Income

			Consolidated
Periods ended December 31			Three Months												Twelve Months
(In millions)			2020						2019						2020						2019
Taxable fixed income securities			$	357					$	387					$	1,451					$	1,538
Tax-exempt fixed income securities			81						77						319						318
Total fixed income securities			438						464						1,770						1,856
Limited partnership and common stock investments			114						69						144						226
Other, net of investment expense			3						12						21						36
Net investment income			$	555					$	545					$	1,935					$	2,118
Effective income yield for fixed income securities portfolio			4.4			%			4.7			%			4.5			%			4.8			%
Limited partnership and common stock return			6.5						3.7						8.3						11.7

			Property & Casualty and Corporate & Other
Periods ended December 31			Three Months												Twelve Months
(In millions)			2020						2019						2020						2019
Taxable fixed income securities			$	221					$	255					$	904					$	1,010
Tax-exempt fixed income securities			12						5						34						22
Total fixed income securities			233						260						938						1,032
Limited partnership and common stock investments			89						69						119						226
Other, net of investment expense			4						12						27						40
Net investment income			$	326					$	341					$	1,084					$	1,298
Effective income yield for fixed income securities portfolio			3.7			%			4.3			%			3.9			%			4.3			%

			Life & Group
Periods ended December 31			Three Months												Twelve Months
(In millions)			2020						2019						2020						2019
Taxable fixed income securities			$	136					$	132					$	547					$	528
Tax-exempt fixed income securities			69						72						285						296
Total fixed income securities			205						204						832						824
Limited partnership and common stock investments			25						—						25						—
Other, net of investment expense			(1)						—						(6)						(4)
Net investment income			$	229					$	204					$	851					$	820
Effective income yield for fixed income securities portfolio			5.5			%			5.5			%			5.6			%			5.6			%

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Claim & Claim Adjustment Expense Reserve Rollforward

Three months ended December 31, 2020 (In millions)			Specialty						Commercial						International						P&C Operations						Life & Group						Corporate & Other						Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross			$	5,698					$	9,054					$	1,975					$	16,727					$	3,766					$	2,041					$	22,534
Ceded			822						857						260						1,939						137						1,875						3,951
Net			4,876						8,197						1,715						14,788						3,629						166						18,583
Net incurred claim & claim adjustment expenses			446						539						150						1,135						221						1						1,357
Net claim & claim adjustment expense payments			(424)						(535)						(112)						(1,071)						(247)						(5)						(1,323)
Foreign currency translation adjustment and other			—						3						69						72						12						—						84
Claim & claim adjustment expense reserves, end of period
Net			4,898						8,204						1,822						14,924						3,615						162						18,701
Ceded			850						837						269						1,956						128						1,921						4,005
Gross			$	5,748					$	9,041					$	2,091					$	16,880					$	3,743					$	2,083					$	22,706

Twelve months ended December 31, 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			1,792						2,437						630						4,859						994						4						5,857
Net claim & claim adjustment expense payments			(1,571)						(2,086)						(504)						(4,161)						(986)						(17)						(5,164)
Foreign currency translation adjustment and other			1						4						68						73						50						—						123
Claim & claim adjustment expense reserves, end of period
Net			4,898						8,204						1,822						14,924						3,615						162						18,701
Ceded			850						837						269						1,956						128						1,921						4,005
Gross			$	5,748					$	9,041					$	2,091					$	16,880					$	3,743					$	2,083					$	22,706

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Life & Group Policyholder Reserves

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			543						—						543
Other			10						—						10
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

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

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Definitions and Presentation

•Collectively, CNA Financial Corporation (CNAF) and its subsidiaries are referred to as CNA or the Company.

•P&C Operations includes Specialty, Commercial and International.

•Life & Group segment primarily includes the results of long term care businesses that are in run-off.

•Corporate & Other segment primarily includes certain corporate expenses including interest on corporate debt and the results of certain property and casualty 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 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.

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•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

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