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Exhibit 99.1
(CNA LOGO)
CNA Financial Corporation
Supplemental Financial Information
Segment Financial Results for each of the first three quarters in 2010,
the Six Months Ended June 30, 2010,
the Nine Months Ended September 30, 2010,
the Three Months Ended December 31, 2009,
and the Twelve Months Ended December 31, 2009 and 2008

 


 

(CNA LOGO)
CNA Financial Corporation
Table of Contents
         
    Page
Definitions and Presentation
    i  
Segment Financial Results for each of the first three quarters in 2010, the Six Months Ended June 30, 2010 and the Nine Months Ended September 30, 2010
    1-6  
Segment Financial Results for the Three Months Ended December 31, 2009
    7-8  
Segment Financial Results for the Twelve Months Ended December 31, 2009 and 2008
    9-10  

 


 

(CNA LOGO)
CNA Financial Corporation
Definitions and Presentation
  Collectively, CNA Financial Corporation (CNAF) and its controlled subsidiaries are referred to as CNA or the Company.
 
  P&C Operations includes CNA Specialty and CNA Commercial.
 
  Life & Group Non-Core segment primarily includes the results of the life and group lines of business that are in run-off.
 
  Corporate & Other Non-Core 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 (A&EP). Intersegment eliminations are also included in this segment.
 
  Management utilizes the net operating income financial measure to monitor the Company’s operations. Please refer to Note K of the Condensed Consolidated Financial Statements within the September 30, 2010 Form 10-Q for further discussion of this measure.
 
  In evaluating the results of CNA Specialty and CNA Commercial, management utilizes the combined ratio, the loss ratio, the expense ratio and the dividend 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.
 
  Certain immaterial differences are due to rounding.
Segment Change — Certain Mass Tort Claims
The Company has revised its reporting segments in the fourth quarter of 2010. The segment change reflects the manner in which the Company is currently organized for purposes of making operating decisions and assessing performance. This Financial Supplement presents segment data for prior reporting periods adjusted to reflect the new segment reporting.
Net incurred claim and claim adjustment expenses and reserves for certain mass tort claims were previously reported as part of the Corporate & Other Non-Core segment. These mass tort claims were centrally managed along with asbestos and environmental pollution claims. A significant portion of this centralized claim group became employees of a subsidiary of Berkshire Hathaway Inc. as a result of the previously announced Loss Portfolio Transfer transaction that closed on August 31, 2010. Management responsibility for these mass tort claims has now been assigned to the segment from which the mass tort arose, which could be either CNA Specialty or CNA Commercial. This change had no impact on the Company’s CNA Specialty and Life & Group Non-Core segments for the periods presented herein.

i


 

(CNA LOGO)
Segment Financial Results for each of the first three quarters in 2010,
the Six Months Ended June 30, 2010,
and the Nine Months Ended September 30, 2010

 


 

(CNA LOGO)
CNA FINANCIAL CORPORATION
Financial Supplement
CNA Specialty
                                         
    Q1     Q2     Q3     Six months ended     Nine months ended  
(In millions)   2010     2010     2010     June 30, 2010     September 30, 2010  
 
Gross written premiums
  $ 1,050     $ 1,043     $ 1,087     $ 2,093     $ 3,180  
Net written premiums
    656       647       706       1,303       2,009  
 
                                       
Net earned premiums
    654       665       679       1,319       1,998  
Net investment income
    147       125       148       272       420  
Other revenues
    52       53       57       105       162  
 
                             
Total operating revenues
    853       843       884       1,696       2,580  
 
                                       
Claims, benefits and expenses:
                                       
Net incurred claims and benefits
    402       320       393       722       1,115  
Policyholders’ dividends
    1       3       2       4       6  
Amortization of deferred acquisition costs
    155       154       162       309       471  
Other insurance related expenses
    47       47       45       94       139  
Other expenses
    44       50       47       94       141  
 
                             
Total claims, benefits and expenses
    649       574       649       1,223       1,872  
 
                                       
Operating income (loss) from continuing operations before income tax
    204       269       235       473       708  
Income tax (expense) benefit on operating income (loss)
    (68 )     (90 )     (80 )     (158 )     (238 )
Net operating (income) loss, after-tax, attributable to noncontrolling interests
    (8 )     (11 )     (11 )     (19 )     (30 )
 
                             
 
                                       
Net operating income (loss) from continuing operations attributable to CNA
    128       168       144       296       440  
 
                                       
Net realized investment gains (losses), net of participating policyholders’ interests
    13       32       15       45       60  
Income tax (expense) benefit on net realized investment gains (losses)
    (4 )     (11 )     (6 )     (15 )     (21 )
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests
                             
 
                             
 
                                       
Net realized investment gains (losses) attributable to CNA
    9       21       9       30       39  
 
                             
 
                                       
Net income (loss) from continuing operations attributable to CNA
  $ 137     $ 189     $ 153     $ 326     $ 479  
 
                             
 
                                       
FINANCIAL RATIOS
                                       
Loss & LAE
    61.5 %     48.2 %     57.8 %     54.8 %     55.8 %
Acquisition expense
    19.2       19.4       19.7       19.3       19.4  
Underwriting expense
    11.6       10.9       10.7       11.3       11.1  
 
                             
Expense
    30.8       30.3       30.4       30.6       30.5  
Dividend
    0.2       0.5       0.3       0.3       0.3  
 
                             
Combined ratio
    92.5 %     79.0 %     88.5 %     85.7 %     86.6 %
 
                             
 
                                       
RATIO IMPACTS
                                       
Impact of catastrophes
                                       
Pretax net accident year catastrophe losses incurred
  $ 2     $ 3     $ 1     $ 5     $ 6  
Impact on loss & LAE ratio
    0.3 %     0.5 %     0.1 %     0.4 %     0.3 %
 
                                       
Impact of development & other
                                       
Pretax net development: (favorable) / unfavorable
                                       
Prior year loss & ALAE reserve development
  $ (25 )   $ (125 )   $ (65 )   $ (150 )   $ (215 )
Prior year premium development
    (4 )     1       (2 )     (3 )     (5 )
Other (1)
                             
 
                             
Total development & other
  $ (29 )   $ (124 )   $ (67 )   $ (153 )   $ (220 )
 
                             
 
                                       
Impact of development & other on loss & LAE ratio
    (4.2 )%     (18.6 )%     (9.8 )%     (11.5 )%     (10.9 )%
 
(1)   Other includes the impacts of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.

1


 

(CNA LOGO)
CNA FINANCIAL CORPORATION
Financial Supplement
CNA Commercial
                                         
    Q1     Q2     Q3     Six months ended     Nine months ended  
(In millions)   2010     2010     2010     June 30, 2010     September 30, 2010  
 
Gross written premiums
  $ 912     $ 936     $ 825     $ 1,848     $ 2,673  
Net written premiums
    829       838       763       1,667       2,430  
 
                                       
Net earned premiums
    816       797       819       1,613       2,432  
Net investment income
    221       184       216       405       621  
Other revenues
    18       16       15       34       49  
 
                             
Total operating revenues
    1,055       997       1,050       2,052       3,102  
 
                                       
Claims, benefits and expenses:
                                       
Net incurred claims and benefits
    604       486       578       1,090       1,668  
Policyholders’ dividends
    1       6       4       7       11  
Amortization of deferred acquisition costs
    183       186       183       369       552  
Other insurance related expenses
    107       107       104       214       318  
Other expenses
    17       11       14       28       42  
 
                             
Total claims, benefits and expenses
    912       796       883       1,708       2,591  
 
                                       
Operating income (loss) from continuing operations before income tax
    143       201       167       344       511  
Income tax (expense) benefit on operating income (loss)
    (43 )     (68 )     (54 )     (111 )     (165 )
Net operating (income) loss, after-tax, attributable to noncontrolling interests
    (2 )     (8 )     (5 )     (10 )     (15 )
 
                             
 
                                       
Net operating income (loss) from continuing operations attributable to CNA
    98       125       108       223       331  
 
                                       
Net realized investment gains (losses), net of participating policyholders’ interests
    21       (12 )     21       9       30  
Income tax (expense) benefit on net realized investment gains (losses)
    (7 )     (2 )     (8 )     (9 )     (17 )
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests
                1             1  
 
                             
 
                                       
Net realized investment gains (losses) attributable to CNA
    14       (14 )     14             14  
 
                             
 
                                       
Net income (loss) from continuing operations attributable to CNA
  $ 112     $ 111     $ 122     $ 223     $ 345  
 
                             
 
                                       
FINANCIAL RATIOS
                                       
Loss & LAE
    74.1 %     60.9 %     70.3 %     67.6 %     68.5 %
Acquisition expense
    18.1       17.9       18.2       18.0       18.0  
Underwriting expense
    17.5       18.8       16.9       18.1       17.8  
 
                             
Expense
    35.6       36.7       35.1       36.1       35.8  
Dividend
    0.1       0.8       0.4       0.4       0.4  
 
                             
Combined ratio
    109.8 %     98.4 %     105.8 %     104.1 %     104.7 %
 
                             
 
                                       
RATIO IMPACTS
                                       
Impact of catastrophes
                                       
Pretax net accident year catastrophe losses incurred
  $ 38     $ 45     $ 11     $ 83     $ 94  
Impact on loss & LAE ratio
    4.7 %     5.7 %     1.4 %     5.2 %     3.9 %
 
                                       
Impact of development & other
                                       
Pretax net development: (favorable) / unfavorable
                                       
Prior year loss & ALAE reserve development
  $ (28 )   $ (175 )   $ (26 )   $ (203 )   $ (229 )
Prior year premium development
    21       35       (2 )     56       54  
Other (1)
          5       (4 )     5       1  
 
                             
Total development & other
  $ (7 )   $ (135 )   $ (32 )   $ (142 )   $ (174 )
 
                             
 
                                       
Impact of development & other on loss & LAE ratio
    (1.5 )%     (18.0 )%     (3.9 )%     (9.6 )%     (7.7 )%
 
(1)   Other includes the impacts of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.

2


 

(CNA LOGO)
CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Operations
                                         
    Q1     Q2     Q3     Six months ended     Nine months ended  
(In millions)   2010     2010     2010     June 30, 2010     September 30, 2010  
 
Gross written premiums
  $ 1,962     $ 1,979     $ 1,912     $ 3,941     $ 5,853  
Net written premiums
    1,485       1,485       1,469       2,970       4,439  
 
                                       
Net earned premiums
    1,470       1,462       1,498       2,932       4,430  
Net investment income
    368       309       364       677       1,041  
Other revenues
    70       69       72       139       211  
 
                             
Total operating revenues
    1,908       1,840       1,934       3,748       5,682  
 
                                       
Claims, benefits and expenses:
                                       
Net incurred claims and benefits
    1,006       806       971       1,812       2,783  
Policyholders’ dividends
    2       9       6       11       17  
Amortization of deferred acquisition costs
    338       340       345       678       1,023  
Other insurance related expenses
    154       154       149       308       457  
Other expenses
    61       61       61       122       183  
 
                             
Total claims, benefits and expenses
    1,561       1,370       1,532       2,931       4,463  
 
                                       
Operating income (loss) from continuing operations before income tax
    347       470       402       817       1,219  
Income tax (expense) benefit on operating income (loss)
    (111 )     (158 )     (134 )     (269 )     (403 )
Net operating (income) loss, after-tax, attributable to noncontrolling interests
    (10 )     (19 )     (16 )     (29 )     (45 )
 
                             
 
                                       
Net operating income (loss) from continuing operations attributable to CNA
    226       293       252       519       771  
 
                                       
Net realized investment gains (losses), net of participating policyholders’ interests
    34       20       36       54       90  
Income tax (expense) benefit on net realized investment gains (losses)
    (11 )     (13 )     (14 )     (24 )     (38 )
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests
                1             1  
 
                             
 
                                       
Net realized investment gains (losses) attributable to CNA
    23       7       23       30       53  
 
                             
 
                                       
Net income (loss) from continuing operations attributable to CNA
  $ 249     $ 300     $ 275     $ 549     $ 824  
 
                             
 
                                       
FINANCIAL RATIOS
                                       
Loss & LAE
    68.5 %     55.1 %     64.7 %     61.8 %     62.8 %
Acquisition expense
    18.6       18.5       18.9       18.6       18.7  
Underwriting expense
    14.9       15.3       14.1       15.0       14.7  
 
                             
Expense
    33.5       33.8       33.0       33.6       33.4  
Dividend
    0.1       0.6       0.3       0.4       0.4  
 
                             
Combined ratio
    102.1 %     89.5 %     98.0 %     95.8 %     96.6 %
 
                             
 
                                       
RATIO IMPACTS
                                       
Impact of catastrophes
                                       
Pretax net accident year catastrophe losses incurred
  $ 40     $ 48     $ 12     $ 88     $ 100  
Impact on loss & LAE ratio
    2.7 %     3.3 %     0.8 %     3.0 %     2.3 %
 
                                       
Impact of development & other
                                       
Pretax net development: (favorable) / unfavorable
                                       
Prior year loss & ALAE reserve development
  $ (53 )   $ (300 )   $ (91 )   $ (353 )   $ (444 )
Prior year premium development
    17       36       (4 )     53       49  
Other (1)
          5       (4 )     5       1  
 
                             
Total development & other
  $ (36 )   $ (259 )   $ (99 )   $ (295 )   $ (394 )
 
                             
 
                                       
Impact of development & other on loss & LAE ratio
    (2.7 )%     (18.4 )%     (6.5 )%     (10.6 )%     (9.2 )%
 
(1)   Other includes the impacts of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.

3


 

(CNA LOGO)
CNA FINANCIAL CORPORATION
Financial Supplement
Life & Group Non-Core
                                         
    Q1     Q2     Q3     Six months ended     Nine months ended  
(In millions)   2010     2010     2010     June 30, 2010     September 30, 2010  
 
Net earned premiums
  $ 145     $ 146     $ 145     $ 291     $ 436  
Net investment income
    175       174       182       349       531  
Other revenues
    4       2       4       6       10  
 
                             
Total operating revenues
    324       322       331       646       977  
 
                                       
Claims, benefits and expenses:
                                       
Net incurred claims and benefits
    281       314       354       595       949  
Policyholders’ dividends
          1       1       1       2  
Amortization of deferred acquisition costs
    4       5       6       9       15  
Other insurance related expenses
    51       45       41       96       137  
Other expenses
    6             7       6       13  
 
                             
Total claims, benefits and expenses
    342       365       409       707       1,116  
 
                                       
Operating income (loss) from continuing operations before income tax
    (18 )     (43 )     (78 )     (61 )     (139 )
Income tax (expense) benefit on operating income (loss)
    19       25       23       44       67  
Net operating (income) loss, after-tax, attributable to noncontrolling interests
                             
 
                             
 
                                       
Net operating income (loss) from continuing operations attributable to CNA
    1       (18 )     (55 )     (17 )     (72 )
 
                                       
Net realized investment gains (losses), net of participating policyholders’ interests
    (4 )     (1 )     20       (5 )     15  
Income tax (expense) benefit on net realized investment gains (losses)
                (7 )           (7 )
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests
                             
 
                             
 
                                       
Net realized investment gains (losses) attributable to CNA
    (4 )     (1 )     13       (5 )     8  
 
                             
 
                                       
Net income (loss) from continuing operations attributable to CNA
  $ (3 )   $ (19 )   $ (42 )   $ (22 )   $ (64 )
 
                             

4


 

(CNA LOGO)
CNA FINANCIAL CORPORATION
Financial Supplement
Corporate & Other Non-Core
                                         
    Q1     Q2     Q3     Six months ended     Nine months ended  
(In millions)   2010     2010     2010     June 30, 2010     September 30, 2010  
 
Net earned premiums
  $     $     $ 2     $     $ 2  
Net investment income
    47       38       35       85       120  
Other revenues
    2       4       (1 )     6       5  
 
                             
Total operating revenues
    49       42       36       91       127  
 
                                       
Claims, benefits and expenses:
                                       
Net incurred claims and benefits
    19       17       12       36       48  
Policyholders’ dividends
                             
Amortization of deferred acquisition costs
                             
Other insurance related expenses
    1       (2 )     8       (1 )     7  
Other expenses
    35       37       569       72       641  
 
                             
Total claims, benefits and expenses
    55       52       589       107       696  
 
                                       
Operating income (loss) from continuing operations before income tax
    (6 )     (10 )     (553 )     (16 )     (569 )
Income tax (expense) benefit on operating income (loss)
    2       4       198       6       204  
Net operating (income) loss, after-tax, attributable to noncontrolling interests
                             
 
                             
 
                                       
Net operating income (loss) from continuing operations attributable to CNA
    (4 )     (6 )     (355 )     (10 )     (365 )
 
                                       
Net realized investment gains (losses), net of participating policyholders’ interests
    4       10       6       14       20  
Income tax (expense) benefit on net realized investment gains (losses)
    (1 )     (3 )     (2 )     (4 )     (6 )
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests
                             
 
                             
 
                                       
Net realized investment gains (losses) attributable to CNA
    3       7       4       10       14  
 
                             
 
                                       
Net income (loss) from continuing operations attributable to CNA
  $ (1 )   $ 1     $ (351 )   $     $ (351 )
 
                             

5


 

(CNA LOGO)
CNA FINANCIAL CORPORATION
Financial Supplement
Total Operations
                                         
    Q1     Q2     Q3     Six months ended     Nine months ended  
(In millions)   2010     2010     2010     June 30, 2010     September 30, 2010  
 
Net earned premiums
  $ 1,615     $ 1,608     $ 1,645     $ 3,223     $ 4,868  
Net investment income
    590       521       581       1,111       1,692  
Other revenues
    76       75       75       151       226  
 
                             
Total operating revenues
    2,281       2,204       2,301       4,485       6,786  
 
                                       
Claims, benefits and expenses:
                                       
Net incurred claims and benefits
    1,306       1,137       1,337       2,443       3,780  
Policyholders’ dividends
    2       10       7       12       19  
Amortization of deferred acquisition costs
    342       345       351       687       1,038  
Other insurance related expenses
    206       197       198       403       601  
Other expenses
    102       98       637       200       837  
 
                             
Total claims, benefits and expenses
    1,958       1,787       2,530       3,745       6,275  
 
                                       
Operating income (loss) from continuing operations before income tax
    323       417       (229 )     740       511  
Income tax (expense) benefit on operating income (loss)
    (90 )     (129 )     87       (219 )     (132 )
Net operating (income) loss, after-tax, attributable to noncontrolling interests
    (10 )     (19 )     (16 )     (29 )     (45 )
 
                             
 
                                       
Net operating income (loss) from continuing operations attributable to CNA
    223       269       (158 )     492       334  
 
                                       
Net realized investment gains (losses), net of participating policyholders’ interests
    34       29       62       63       125  
Income tax (expense) benefit on net realized investment gains (losses)
    (12 )     (16 )     (23 )     (28 )     (51 )
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests
                1             1  
 
                             
 
                                       
Net realized investment gains (losses) attributable to CNA
    22       13       40       35       75  
 
                             
 
                                       
Net income (loss) from continuing operations attributable to CNA
  $ 245     $ 282     $ (118 )   $ 527     $ 409  
 
                             

6


 

(CNA LOGO)
Segment Financial Results for the Three Months Ended December 31, 2009

 


 

(CNA LOGO)
CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Operations
                             
THREE MONTHS ENDED                      
DECEMBER 31, 2009
(In millions)
  CNA
Specialty
      CNA
Commercial
      P&C
Operations
 
             
Gross written premiums
  $ 1,027       $ 878       $ 1,905  
Net written premiums
    667         801         1,468  
 
                           
Net earned premiums
    683         858         1,541  
Net investment income
    130         223         353  
Other revenues
    53         14         67  
 
                     
Total operating revenues
    866         1,095         1,961  
 
                           
Claims, benefits and expenses:
                           
Net incurred claims and benefits
    327         562         889  
Policyholders’ dividends
    2         3         5  
Amortization of deferred acquisition costs
    167         184         351  
Other insurance related expenses
    40         134         174  
Other expenses
    46         15         61  
 
                     
Total claims, benefits and expenses
    582         898         1,480  
 
                           
Operating income (loss) from continuing operations before income tax
    284         197         481  
Income tax (expense) benefit on operating income (loss)
    (87 )       (57 )       (144 )
Net operating (income) loss, after-tax, attributable to noncontrolling interests
    (19 )       (5 )       (24 )
 
                     
 
                           
Net operating income (loss) from continuing operations attributable to CNA
    178         135         313  
 
                           
Net realized investment gains (losses), net of participating policyholders’ interests
    41         86         127  
Income tax (expense) benefit on net realized investment gains (losses)
    (12 )       (31 )       (43 )
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests
    (1 )       1          
 
                           
 
                     
Net realized investment gains (losses) attributable to CNA
    28         56         84  
 
                     
 
                           
Net income (loss) from continuing operations attributable to CNA
  $ 206       $ 191       $ 397  
 
                     
 
                           
FINANCIAL RATIOS
                           
Loss & LAE
    47.8 %       65.6 %       57.8 %
Acquisition expense
    18.7         20.2         19.6  
Underwriting expense
    11.6         16.8         14.3  
 
                     
Expense
    30.3         37.0         33.9  
Dividend
    0.3         0.4         0.4  
 
                     
Combined ratio
    78.4 %       103.0 %       92.1 %
 
                     
 
                           
RATIO IMPACTS
                           
Impact of catastrophes
                           
Pretax net accident year catastrophe losses incurred
  $ 1       $ 9       $ 10  
Impact on loss & LAE ratio
    0.1 %       1.1 %       0.7 %
 
                           
Impact of development & other
                           
Pretax net development: (favorable) / unfavorable
                           
Prior year loss & ALAE reserve development
  $ (115 )     $ (82 )     $ (197 )
Prior year premium development
    (6 )       2         (4 )
Other (1)
    1         6         7  
 
                     
Total development & other
  $ (120 )     $ (74 )     $ (194 )
 
                     
 
                           
Impact of development & other on loss & LAE ratio
    (17.1 )%       (8.6 )%       (12.5 )%
 
(1)   Other includes the impacts of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.

7


 

(CNA LOGO)
CNA FINANCIAL CORPORATION
Financial Supplement
Life & Group Non-Core and Corporate & Other Non-Core Segments
                                       
THREE MONTHS ENDED                              
DECEMBER 31, 2009
(In millions)
  P&C
Operations
      Life & Group
Non-Core
      Corporate & Other
Non-Core
      Total
Operations
 
                 
Net earned premiums
  $ 1,541       $ 148       $ (3 )     $ 1,686  
Net investment income
    353         168         44         565  
Other revenues
    67         4         4         75  
 
                             
Total operating revenues
    1,961         320         45         2,326  
 
                                     
Claims, benefits and expenses:
                                     
Net incurred claims and benefits
    889         311         164         1,364  
Policyholders’ dividends
    5         2                 7  
Amortization of deferred acquisition costs
    351         3                 354  
Other insurance related expenses
    174         45         (1 )       218  
Other expenses
    61         5         32         98  
 
                             
Total claims, benefits and expenses
    1,480         366         195         2,041  
 
                                     
Operating income (loss) from continuing operations before income tax
    481         (46 )       (150 )       285  
Income tax (expense) benefit on operating income (loss)
    (144 )       27         53         (64 )
Net operating (income) loss, after-tax, attributable to noncontrolling interests
    (24 )                       (24 )
 
                             
 
                                     
Net operating income (loss) from continuing operations attributable to CNA
    313         (19 )       (97 )       197  
 
                                     
Net realized investment gains (losses), net of participating policyholders’ interests
    127         (79 )       24         72  
Income tax (expense) benefit on net realized investment gains (losses)
    (43 )       27         (7 )       (23 )
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests
                             
 
                             
 
                                     
Net realized investment gains (losses) attributable to CNA
    84         (52 )       17         49  
 
                             
 
                                     
Net income (loss) from continuing operations attributable to CNA
  $ 397       $ (71 )     $ (80 )     $ 246  
 
                             

8


 

     
(CNA LOGO)
Segment Financial Results for the Twelve Months Ended December 31, 2009 and 2008

 


 

     
(CNA LOGO)
CNA FINANCIAL CORPORATION
Financial Supplement
Property & Casualty Operations
                                                     
TWELVE MONTHS ENDED
DECEMBER 31
  CNA Specialty       CNA Commercial       P&C Operations  
(In millions)   2009     2008       2009     2008       2009     2008  
             
Gross written premiums
  $ 4,222     $ 4,254       $ 3,824     $ 4,213       $ 8,046     $ 8,467  
Net written premiums
    2,684       2,719         3,448       3,770         6,132       6,489  
 
                                                   
Net earned premiums
    2,697       2,755         3,432       3,787         6,129       6,542  
Net investment income
    526       354         935       612         1,461       966  
Other revenues
    206       219         61       65         267       284  
 
                                       
Total operating revenues
    3,429       3,328         4,428       4,464         7,857       7,792  
 
                                                   
Claims, benefits and expenses:
                                                   
Net incurred claims and benefits
    1,536       1,700         2,420       2,772         3,956       4,472  
Policyholders’ dividends
    9       13         9       1         18       14  
Amortization of deferred acquisition costs
    624       618         775       836         1,399       1,454  
Other insurance related expenses
    163       137         435       343         598       480  
Other expenses
    179       198         77       105         256       303  
 
                                       
Total claims, benefits and expenses
    2,511       2,666         3,716       4,057         6,227       6,723  
 
                                                   
Operating income (loss) from continuing operations before income tax
    918       662         712       407         1,630       1,069  
Income tax (expense) benefit on operating income (loss)
    (282 )     (205 )       (201 )     (101 )       (483 )     (306 )
Net operating (income) loss, after-tax, attributable to noncontrolling interests
    (45 )     (43 )       (17 )     (14 )       (62 )     (57 )
 
                                       
 
                                                   
Net operating income (loss) from continuing operations attributable to CNA
    591       414         494       292         1,085       706  
 
                                                   
Net realized investment gains (losses), net of participating policyholders’ interests
    (186 )     (257 )       (360 )     (526 )       (546 )     (783 )
Income tax (expense) benefit on net realized investment gains (losses)
    64       90         123       185         187       275  
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests
    (1 )             1                      
 
                                       
 
                                                   
Net realized investment gains (losses) attributable to CNA
    (123 )     (167 )       (236 )     (341 )       (359 )     (508 )
 
                                       
 
                                                   
Net income (loss) from continuing operations attributable to CNA
  $ 468     $ 247       $ 258     $ (49 )     $ 726     $ 198  
 
                                       
 
                                                   
FINANCIAL RATIOS
                                                   
Loss & LAE
    56.9 %     61.7 %       70.5 %     73.1 %       64.5 %     68.3 %
Acquisition expense
    18.8       18.2         18.5       17.1         18.6       17.6  
Underwriting expense
    10.5       9.1         16.7       14.1         14.0       12.0  
 
                                       
Expense
    29.3       27.3         35.2       31.2         32.6       29.6  
Dividend
    0.3       0.5         0.3               0.3       0.2  
 
                                       
Combined ratio
    86.5 %     89.5 %       106.0 %     104.3 %       97.4 %     98.1 %
 
                                       
 
                                                   
RATIO IMPACTS
                                                   
Impact of catastrophes
                                                   
Pretax net accident year catastrophe losses incurred
  $ 7     $ 15       $ 82     $ 343       $ 89     $ 358  
Impact on loss & LAE ratio
    0.2 %     0.6 %       2.4 %     9.0 %       1.4 %     5.5 %
Pretax assessments related to catastrophes
  $     $       $     $ 10       $     $ 10  
Impact on expense ratio
    %     %       %     0.3 %       %     0.2 %
 
                                                   
Impact of development & other
                                                   
Pretax net development: (favorable) / unfavorable
                                                   
Prior year loss & ALAE reserve development
  $ (218 )   $ (97 )     $ (230 )   $ (102 )     $ (448 )   $ (199 )
Prior year premium development
    (6 )     (9 )       87       5         81       (4 )
Other (1)
          (4 )       18       (83 )       18       (87 )
 
                                       
Total development & other
  $ (224 )   $ (110 )     $ (125 )   $ (180 )     $ (349 )   $ (290 )
 
                                       
 
                                                   
Impact of development & other on loss & LAE ratio
    (8.3 )%     (3.9 )%       (4.3 )%     (4.8 )%       (6.1 )%     (4.4 )%
 
(1)   Other includes the impacts of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.

9


 

     
(CNA LOGO)
CNA FINANCIAL CORPORATION
Financial Supplement
Life & Group Non-Core and Corporate & Other Non-Core Segments
                                                                       
TWELVE MONTHS ENDED
DECEMBER 31
  P&C Operations       Life & Group Non-Core       Corporate & Other Non-Core       Total Operations  
(In millions)   2009     2008       2009     2008       2009     2008       2009     2008  
                   
Net earned premiums
  $ 6,129     $ 6,542       $ 595     $ 612       $ (3 )   $ (3 )     $ 6,721     $ 7,151  
Net investment income
    1,461       966         664       484         195       169         2,320       1,619  
Other revenues
    267       284         11       28         10       14         288       326  
 
                                                     
Total operating revenues
    7,857       7,792         1,270       1,124         202       180         9,329       9,096  
 
                                                                     
Claims, benefits and expenses:
                                                                     
Net incurred claims and benefits
    3,956       4,472         1,084       1,104         227       127         5,267       5,703  
Policyholders’ dividends
    18       14         5       6                       23       20  
Amortization of deferred acquisition costs
    1,399       1,454         18       13                       1,417       1,467  
Other insurance related expenses
    598       480         183       201               13         781       694  
Other expenses
    256       303         69       24         119       150         444       477  
 
                                                     
Total claims, benefits and expenses
    6,227       6,723         1,359       1,348         346       290         7,932       8,361  
 
                                                                     
Operating income (loss) from continuing operations before income tax
    1,630       1,069         (89 )     (224 )       (144 )     (110 )       1,397       735  
Income tax (expense) benefit on operating income (loss)
    (483 )     (306 )       73       116         57       45         (353 )     (145 )
Net operating (income) loss, after-tax, attributable to noncontrolling interests
    (62 )     (57 )                                   (62 )     (57 )
 
                                                     
 
                                                                     
Net operating income (loss) from continuing operations attributable to CNA
    1,085       706         (16 )     (108 )       (87 )     (65 )       982       533  
 
                                                                     
Net realized investment gains (losses), net of participating policyholders’ interests
    (546 )     (783 )       (235 )     (363 )       (76 )     (151 )       (857 )     (1,297 )
Income tax (expense) benefit on net realized investment gains (losses)
    187       275         82       127         27       54         296       456  
Net realized investment (gains) losses, after-tax, attributable to noncontrolling interests
                                                     
 
                                                     
 
                                                                     
Net realized investment gains (losses) attributable to CNA
    (359 )     (508 )       (153 )     (236 )       (49 )     (97 )       (561 )     (841 )
 
                                                     
 
                                                                     
Net income (loss) from continuing operations attributable to CNA
  $ 726     $ 198       $ (169 )   $ (344 )     $ (136 )   $ (162 )     $ 421     $ (308 )
 
                                                     

10