# CNA FINANCIAL CORP (CNA)

Informational only - not investment advice.

CIK: 0000021175
SIC: 6331 Fire, Marine & Casualty Insurance
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Insurance Carriers](/major-group/63/) > [SIC 6331 Fire, Marine & Casualty Insurance](/industry/6331/)
Latest 10-K filed: 2026-02-10
SEC page: https://www.sec.gov/edgar/browse/?CIK=21175
Filing source: https://www.sec.gov/Archives/edgar/data/21175/000002117526000011/cna-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-10 · accession 0000021175-26-000011 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000021175.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 14,989,000,000 USD | 2025 | verified |
| Net income | 1,278,000,000 USD | 2025 | verified |
| Assets | 69,443,000,000 USD | 2025 | verified |
| Free cash flow | 2,404,000,000 USD | 2025 | computed |
| Net margin | 8.53% | 2025 | computed |
| Revenue YoY | +5.04% | 2025 | computed |
| ROE | 11.00% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | CNA | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 8.5% | 12.9% | 21 | 53 |
| Revenue growth | 5.0% | 9.4% | 29 | 53 |
| FCF margin | 16.0% | 19.9% | 37 | 36 |
| ROE | 11.0% | 15.9% | 27 | 53 |
| ROA | 1.8% | 3.9% | 17 | 53 |
| Liabilities / equity | 4.98 | 3.04 | 88 | 53 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6331 Fire, Marine & Casualty Insurance, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 14989000000 | USD | 2025 | 2026-02-10 |
| Net income | 1278000000 | USD | 2025 | 2026-02-10 |
| Assets | 69443000000 | USD | 2025 | 2026-02-10 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000021175.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 9,366,000,000 | 9,542,000,000 | 10,134,000,000 | 10,767,000,000 | 10,808,000,000 | 11,908,000,000 | 11,879,000,000 | 13,299,000,000 | 14,270,000,000 | 14,989,000,000 |
| Net income | 859,000,000 | 899,000,000 | 813,000,000 | 1,000,000,000 | 690,000,000 | 1,184,000,000 | 682,000,000 | 1,205,000,000 | 959,000,000 | 1,278,000,000 |
| Diluted EPS | 3.17 | 3.30 | 2.98 | 3.67 | 2.53 | 4.34 | 2.51 | 4.43 | 3.52 | 4.69 |
| Operating cash flow | 1,416,000,000 | 1,254,000,000 | 1,227,000,000 | 1,140,000,000 | 1,775,000,000 | 1,997,000,000 | 2,502,000,000 | 2,285,000,000 | 2,571,000,000 | 2,490,000,000 |
| Capital expenditures | 146,000,000 | 102,000,000 | 99,000,000 | 26,000,000 | 23,000,000 | 26,000,000 | 52,000,000 | 90,000,000 | 95,000,000 | 86,000,000 |
| Dividends paid | 813,000,000 | 842,000,000 | 896,000,000 | 929,000,000 | 950,000,000 | 621,000,000 | 982,000,000 | 787,000,000 | 1,025,000,000 | 1,047,000,000 |
| Share buybacks |  | 0.00 | 0.00 | 23,000,000 | 18,000,000 | 18,000,000 | 39,000,000 | 24,000,000 | 20,000,000 | 34,000,000 |
| Assets | 55,233,000,000 | 56,567,000,000 | 57,152,000,000 | 60,612,000,000 | 64,026,000,000 | 66,639,000,000 | 61,000,000,000 | 64,711,000,000 | 66,492,000,000 | 69,443,000,000 |
| Liabilities | 43,264,000,000 | 44,323,000,000 | 45,935,000,000 | 48,397,000,000 | 51,319,000,000 | 53,830,000,000 | 52,452,000,000 | 54,818,000,000 | 55,979,000,000 | 57,822,000,000 |
| Stockholders' equity | 11,969,000,000 | 12,244,000,000 | 11,217,000,000 | 12,215,000,000 | 12,707,000,000 | 11,105,000,000 | 8,548,000,000 | 9,893,000,000 | 10,513,000,000 | 11,621,000,000 |
| Free cash flow | 1,270,000,000 | 1,152,000,000 | 1,128,000,000 | 1,114,000,000 | 1,752,000,000 | 1,971,000,000 | 2,450,000,000 | 2,195,000,000 | 2,476,000,000 | 2,404,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 9.17% | 9.42% | 8.02% | 9.29% | 6.38% | 9.94% | 5.74% | 9.06% | 6.72% | 8.53% |
| Return on equity | 7.18% | 7.34% | 7.25% | 8.19% | 5.43% | 10.66% | 7.98% | 12.18% | 9.12% | 11.00% |
| Return on assets | 1.56% | 1.59% | 1.42% | 1.65% | 1.08% | 1.78% | 1.12% | 1.86% | 1.44% | 1.84% |
| Liabilities / equity | 3.61 | 3.62 | 4.10 | 3.96 | 4.04 | 4.85 | 6.14 | 5.54 | 5.32 | 4.98 |

## As-reported value updates

4 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/CNA/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-03. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000021175.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q1 | 2022-03-31 |  |  | 1.15 | reported discrete quarter |
| 2022-Q2 | 2022-06-30 |  |  | 0.75 | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  |  | 0.47 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 3,336,000,000 | 258,000,000 | 0.95 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 3,507,000,000 | 367,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 3,444,000,000 | 338,000,000 | 1.24 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 3,519,000,000 | 317,000,000 | 1.17 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 3,618,000,000 | 283,000,000 | 1.04 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 3,689,000,000 | 21,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 3,627,000,000 | 274,000,000 | 1.00 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 3,717,000,000 | 299,000,000 | 1.10 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 3,817,000,000 | 403,000,000 | 1.48 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 3,828,000,000 | 302,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 3,677,000,000 | 211,000,000 | 0.78 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 3,829,000,000 | 321,000,000 | 1.18 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from CNA's latest 10-K: [/company/CNA/business/](/company/CNA/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from CNA's latest 10-K: [/company/CNA/risk-factors/](/company/CNA/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/21175/000002117526000045/cna-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-03
Report date: 2026-06-30

Item 2. Management's Discussion and Analysis (MD&A) of Financial Condition and Results of Operations

OVERVIEW

The following discussion highlights significant factors affecting the Company. References to “we,” “our,” “us” or like terms refer to the business of CNA.

The following discussion should be read in conjunction with the Condensed Consolidated Financial Statements included under Part I, Item 1 of this Form 10-Q, and Item 1A Risk Factors and Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations, which are included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2025.

We utilize the core income (loss) financial measure to monitor our operations. Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses and gains or losses resulting from pension settlement transactions. Net investment gains or losses are excluded from the calculation of core income (loss) because they are generally driven by economic factors that are not necessarily reflective of our primary operations. The calculation of core income (loss) excludes gains or losses resulting from pension settlement transactions as they result from decisions regarding our defined benefit pension plans which are unrelated to our primary operations. Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure and management believes some investors may find this measure useful to evaluate our primary operations. See further discussion regarding how we manage our business in Note J to the Condensed Consolidated Financial Statements included under Part I, Item 1. For reconciliations of non-GAAP measures to the most comparable GAAP measures and other information, please refer herein and/or to our most recent Annual Report on Form 10-K on file with the Securities and Exchange Commission.

In evaluating the results of our Specialty, Commercial and International segments, we utilize the loss ratio, the underlying loss ratio, the expense ratio, the dividend ratio, the combined ratio and the underlying combined ratio. These ratios are calculated using GAAP financial results. The loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums. The underlying loss ratio excludes the impact of catastrophe-related reinstatement premiums, catastrophe losses and development-related items from the loss ratio. Development-related items represent net prior year loss reserve and premium development, and include the effects of interest accretion and change in allowance for uncollectible reinsurance. 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 ratio, the expense ratio and the dividend ratio. The underlying combined ratio is the sum of the underlying loss ratio, the expense ratio and the dividend ratio. The underlying loss ratio and the underlying combined ratio are deemed to be non-GAAP financial measures, and management believes some investors may find these ratios useful to evaluate our underwriting performance since they remove the impact of catastrophes which are unpredictable as to timing and amount, and development-related items as they are not indicative of our current year underwriting performance.

Changes in estimates of claim and claim adjustment expense reserves, net of reinsurance, for prior years are defined as net prior year loss reserve development within this MD&A. These changes can be favorable or unfavorable. Net prior year loss reserve development does not include the effect of any related acquisition expenses. Further information on our reserves is provided in Note E and Note F to the Condensed Consolidated Financial Statements included under Part I, Item 1.

In addition, we also utilize 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. Exposure represents the measure of risk used in the pricing of the insurance product. The change in exposure represents the change in premium dollars on policies that renew as a result of the change in risk of the policy. Retention represents the percentage of premium dollars renewed, excluding rate and exposure changes, in comparison to the expiring premium dollars from policies available to renew. New business represents premiums from policies written with new customers and additional policies written with existing customers.

45

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We use underwriting gain (loss) and underlying underwriting gain (loss), calculated using GAAP financial results, to monitor our insurance operations. Underwriting gain (loss) is deemed to be a non-GAAP financial measure and is calculated pretax as net earned premiums less total insurance expenses, which includes insurance claims and policyholders' benefits, amortization of deferred acquisition costs and insurance related administrative expenses. Net income (loss) is the most directly comparable GAAP measure. Management believes some investors may find this measure useful to evaluate the profitability, before tax, derived from our underwriting activities, which are managed separately from our investing activities. Underlying underwriting gain (loss) is also deemed to be a non-GAAP financial measure, and represents pretax underwriting gain (loss) excluding catastrophe-related reinstatement premiums, catastrophe losses and development-related items. Management believes some investors may find this measure useful to evaluate the profitability, before tax, derived from our underwriting activities, excluding the impact of catastrophes, which are unpredictable as to timing and amount, and development-related items as they are not indicative of our current year underwriting performance.

The following tables present reconciliations of net income to core income, underwriting gain and underlying underwriting gain for our Property & Casualty Operations:

[[GREPCENT_TABLE]]
[["Three months ended June 30, 2026","Specialty","Commercial","International","Property & Casualty"],["(In millions)"],["Net income","$","157","","$","233","","$","36","","$","426"],["Net investment (gains) losses, after tax","\u2014","","(1)","","1","","\u2014"],["Core income","$","157","","$","232","","$","37","","$","426"],["Less:"],["Net investment income","171","","246","","44","","461"],["Non-insurance warranty revenue (expense)","11","","\u2014","","\u2014","","11"],["Other revenue (expense), including interest expense","(15)","","(3)","","\u2014","","(18)"],["Income tax expense on core income","(42)","","(61)","","(17)","","(120)"],["Underwriting gain","32","","50","","10","","92"],["Catastrophe-related reinstatement premiums","\u2014","","\u2014","","\u2014","","\u2014"],["Catastrophe losses","\u2014","","53","","7","","60"],["Effect of unfavorable development-related items","\u2014","","1","","\u2014","","1"],["Underlying underwriting gain","$","32","","$","104","","$","17","","$","153"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["Three months ended June 30, 2025","Specialty","Commercial","International","Property & Casualty"],["(In millions)"],["Net income","$","165","","$","199","","$","53","","$","417"],["Net investment losses, after tax","12","","19","","\u2014","","31"],["Core income","$","177","","$","218","","$","53","","$","448"],["Less:"],["Net investment income","170","","206","","38","","414"],["Non-insurance warranty revenue (expense)","14","","\u2014","","\u2014","","14"],["Other revenue (expense), including interest expense","(11)","","(5)","","10","","(6)"],["Income tax expense on core income","(49)","","(57)","","(18)","","(124)"],["Underwriting gain","53","","74","","23","","150"],["Catastrophe-related reinstatement premiums","\u2014","","\u2014","","\u2014","","\u2014"],["Catastrophe losses","\u2014","","57","","5","","62"],["Effect of unfavorable development-related items","\u2014","","1","","\u2014","","1"],["Underlying underwriting gain","$","53","","$","132","","$","28","","$","213"]]
[[/GREPCENT_TABLE]]

46

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[[GREPCENT_TABLE]]
[["Six months ended June 30, 2026","Specialty","Commercial","International","Property & Casualty"],["(In millions)"],["Net income","$","252","","$","338","","$","72","","$","662"],["Net investment losses, after tax","4","","6","","2","","12"],["Core income","$","256","","$","344","","$","74","","$","674"],["Less:"],["Net investment income","313","","436","","87","","836"],["Non-insurance warranty revenue (expense)","29","","\u2014","","\u2014","","29"],["Other revenue (expense), including interest expense","(26)","","(5)","","(2)","","(33)"],["Income tax expense on core income","(68)","","(88)","","(35)","","(191)"],["Underwriting gain","8","","1","","24","","33"],["Catastrophe-related reinstatement premiums","\u2014","","9","","\u2014","","9"],["Catastrophe losses","\u2014","","137","","11","","148"],["Effect of unfavorable development-related items","50","","57","","\u2014","","107"],["Underlying underwriting gain","$","58","","$","204","","$","35","","$","297"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["Six months ended June 30, 2025","Specialty","Commercial","International","Property & Casualty"],["(In millions)"],["Net income","$","314","","$","323","","$","91","","$","728"],["Net investment losses (gains), after tax","13","","19","","(1)","","31"],["Core income","$","327","","$","342","","$","90","","$","759"],["Less:"],["Net investment income","321","","383","","72","","776"],["Non-insurance warranty revenue (expense)","26","","\u2014","","\u2014","","26"],["Other revenue (expense), including interest expense","(25)","","(7)","","11","","(21)"],["Income tax expense on core income","(90)","","(91)","","(31)","","(212)"],["Underwriting gain","95","","57","","38","","190"],["Catastrophe-related reinstatement premiums","\u2014","","\u2014","","\u2014","","\u2014"],["Catastrophe losses","\u2014","","143","","16","","159"],["Effect of unfavorable development-related items","10","","53","","\u2014","","63"],["Underlying underwriting gain","$","105","","$","253","","$","54","","$","412"]]
[[/GREPCENT_TABLE]]

The following table presents a reconciliation of net loss to core (loss) income for our Life & Group segment:

[[GREPCENT_TABLE]]
[["Periods ended June 30","Three Months","","Six Months"],["(In millions)","2026","","2025","","2026","","2025"],["Net loss","$","(12)","","","$","(4)","","","$","(23)","","","$","(5)"],["Net investment losses, after tax","2","","","5","","","4","","","12"],["Core (loss) income","$","(10)","","","$","1","","","$","(19)","","","$","7"]]
[[/GREPCENT_TABLE]]

The following table presents a reconciliation of net loss to core loss for our Corporate & Other segment:

[[GREPCENT_TABLE]]
[["Periods ended June 30","Three Months","","Six Months"],["(In millions)","2026","","2025","","2026","","2025"],["Net loss","$","(93)","","","$","(114)","","","$","(107)","","","$","(150)"],["Net investment losses, after tax","1","","","\u2014","","","1","","","\u2014"],["Core loss","$","(92)","","","$","(114)","","","$","(106)","","","$","(150)"]]
[[/GREPCENT_TABLE]]

47

Table of Contents

CRITICAL ACCOUNTING ESTIMATES

The preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/21175/000002117526000011/cna-20251231.htm
Complete FY 2025 MD&A: /company/CNA/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-10
Report date: 2025-12-31

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

2024 Compared with 2023

This section of this Form 10-K generally discusses 2025 and 2024 results and year-to-year comparisons between 2025 and 2024. A discussion of changes in our results of operations from 2024 to 2023 has been omitted from this Form 10-K, but may be found in “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the year ended December 31, 2024, filed with the SEC on February 11, 2025.

Index to this MD&A

Management's discussion and analysis of financial condition and results of operations is comprised of the following sections:

[[GREPCENT_TABLE]]
[["","Page No."],["Overview","20"],["Critical Accounting Estimates","20"],["Reserves - Estimates and Uncertainties","22"],["Catastrophes and Related Reinsurance","28"],["Consolidated Operations","30"],["Segment Results","31"],["Specialty","34"],["Commercial","37"],["International","39"],["Life & Group","41"],["Corporate & Other","42"],["Investments","43"],["Net Investment Income","43"],["Net Investment Gains (Losses)","43"],["Portfolio Quality","44"],["Duration","45"],["Liquidity and Capital Resources","46"],["Cash Flows","46"],["Liquidity","46"],["Common Stock Dividends","47"],["Commitments, Contingencies and Guarantees","47"],["Ratings","48"],["Accounting Standards Updates","49"],["Recent Legislation","49"],["Forward-Looking Statements","49"]]
[[/GREPCENT_TABLE]]

19

Table of Contents

OVERVIEW

The following discussion should be read in conjunction with Part I, Item 1A Risk Factors and Part II, Item 8 Financial Statements and Supplementary Data of this Form 10-K.

CRITICAL ACCOUNTING ESTIMATES

The preparation of Consolidated Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the amount of revenues and expenses reported during the period. Actual results may differ from those estimates.

Our Consolidated Financial Statements and accompanying notes have been prepared in accordance with GAAP applied on a consistent basis. We continually evaluate the accounting policies and estimates used to prepare the Consolidated Financial Statements. In general, our estimates are based on historical experience, evaluation of current trends, information from third-party professionals and various other assumptions that are believed to be reasonable under the known facts and circumstances.

The accounting estimates discussed below are considered by us to be critical to an understanding of our Consolidated Financial Statements as their application places the most significant demands on our judgment. Note A to the Consolidated Financial Statements included under Item 8 should be read in conjunction with this section to assist with obtaining an understanding of the underlying accounting policies related to these estimates. Due to the inherent uncertainties involved with these types of judgments, actual results could differ significantly from our estimates and may have a material adverse impact on our results of operations, financial condition, equity, business, and insurer financial strength and corporate debt ratings.

Insurance Reserves

Insurance reserves are established for both short and long-duration insurance contracts. Short-duration contracts are primarily related to property and casualty insurance policies where the reserving process is based on actuarial estimates of the amount of loss, including amounts for known and unknown claims. Long-duration contracts are primarily related to long-term care policies and the reserves are recorded as Future policy benefits reserves as discussed below. The reserve for unearned premiums represents the portion of premiums written related to the unexpired terms of coverage. If our recorded reserves are insufficient to cover our estimated ultimate unpaid liability, we may need to increase our insurance reserves. The reserving process is discussed in further detail in the Reserves - Estimates and Uncertainties section below.

Long-Term Care Reserves

Future policy benefits reserves for our long-term care policies are based on certain actuarial assumptions, including morbidity, persistency, premium rate actions and expenses. The adequacy of the reserves is contingent upon actual experience and our future expectations related to these key assumptions. If actual or expected future experience differs from these assumptions, the reserves may not be adequate, requiring us to increase reserves. The reserves are discounted using upper-medium grade fixed income instrument yields as of each reporting date. The reserving process is discussed in further detail in the Reserves - Estimates and Uncertainties section below.

Valuation of Investments and Impairment of Securities

Our fixed maturity and equity securities are carried at fair value on the balance sheet. Fair value represents the price that would be received in a sale of an asset in an orderly transaction between market participants on the measurement date, the determination of which may require us to make a significant number of assumptions and judgments. Securities with the greatest level of subjectivity around valuation are those that rely on inputs that are significant to the estimated fair value and that are not observable in the market or cannot be derived principally from or corroborated by observable market data. These unobservable inputs are based on assumptions consistent with what we believe other market participants would use to price such securities. Further information on our fair value measurements is in Note C to the Consolidated Financial Statements included under Item 8.

20

Table of Contents

Our fixed maturity securities are subject to market declines below amortized cost that may result in the recognition of impairment losses in earnings. Factors considered in the determination of whether or not an impairment loss is recognized in earnings include a current intention or need to sell the security or an indication that a credit loss exists. Significant judgment is required in the determination of whether a credit loss has occurred for a security. We consider all available evidence when determining whether a security requires a credit allowance to be recorded, including the financial condition and expected near-term and long-term prospects of the issuer, whether the issuer is current with interest and principal payments, credit ratings on the security or changes in ratings over time, general market conditions, industry, sector or other specific factors and whether we expect to receive cash flows sufficient to recover the entire amortized cost basis of the security.

Our mortgage loan portfolio is subject to the expected credit loss model, which requires immediate recognition of estimated credit losses over the life of the asset and the presentation of the asset at the net amount expected to be collected. Significant judgment is required in the determination of estimated credit losses and any changes in our expectation of the net amount to be collected are recognized in earnings.

Further information on our process for evaluating impairments and expected credit losses is in Note A to the Consolidated Financial Statements included under Item 8.

21

Table of Contents

RESERVES - ESTIMATES AND UNCERTAINTIES

The level of reserves we maintain represents our best estimate, as of a particular point in time, of what the ultimate settlement and administration of claims will cost based on our assessment of facts and circumstances known at that time. Reserves are not an exact calculation of liability but instead are complex estimates that we derive, generally utilizing a variety of actuarial reserve estimation techniques, from numerous assumptions and expectations about future events, both internal and external, many of which are highly uncertain. As noted below, we review our reserves for each segment of our business periodically, and any such review could result in the need to increase reserves in amounts which could be material and could adversely affect our results of operations, equity, business and insurer financial strength and corporate debt ratings. Further information on reserves is provided in Note E and F to the Consolidated Financial Statements included under Item 8.

Property and Casualty Claim and Claim Adjustment Expense Reserves

We maintain loss reserves to cover our estimated ultimate unpaid liability for claim and claim adjustment expenses, including the estimated cost of the claims adjudication process, for claims that have been reported but not yet settled (case reserves) and claims that have been incurred but not reported (IBNR). IBNR includes a provision for development on known cases as well as a provision for late reported incurred claims. Claim and claim adjustment expense reserves are reflected as liabilities and are included on the Consolidated Balance Sheets under the heading “Insurance Reserves.” Adjustments to prior year reserve estimates, if necessary, are reflected in results of operations in the period that the need for such adjustments is determined. The carried case and IBNR reserves as of each balance sheet date are provided in the Segment Results section of this MD&A and in Note E to the Consolidated Financial Statements included under Item 8.

As discussed in the Risk Factors discussion within Item 1A, there is a risk that our recorded reserves are insufficient to cover our estimated ultimate unpaid liability for claims and claim adjustment expenses. Unforeseen emerging or potential claims and coverage issues are also difficult to predict and could materially adversely affect the adequacy of our claim and claim adjustment expense reserves and could lead to future reserve increases.

In addition, our property and casualty insurance subsidiaries also have actual and potential exposures related to A&EP claims, which could result in material losses. To mitigate the risks posed by our exposure to A&EP claims and claim adjustment expenses, we completed a transaction with NICO under which substantially all of our legacy A&EP liabilities were ceded to NICO effective January 1, 2010. See Note E to the Consolidated Financial Statements included under Item 8 for further discussion about the transaction with NICO, its impact on our results of operations and the deferred retroactive reinsurance gains and the amount of remaining reinsurance limit.

Establishing Property & Casualty Reserve Estimates

In developing claim and claim adjustment expense reserve estimates, our actuaries perform detailed reserve analyses that are staggered throughout the year. The data is organized at a reserve group level. A reserve group typically can be a line of business covering a subset of insureds such as commercial automobile liability for small or middle market customers or it can be a particular type of claim such as construction defect. Every reserve group is reviewed at least once during the year, but most are reviewed more frequently. The analyses generally review losses gross of ceded reinsurance and apply the ceded reinsurance terms to the gross estimates to establish estimates net of reinsurance. In addition to the detailed analyses, we review actual loss emergence for all products each quarter.

Most of our business can be characterized as long-tail. For long-tail business, it will generally be several years between the time the business is written and the time when all claims are settled. Our long-tail exposures include commercial automobile liability, workers' compensation, general liability, medical professional liability, other professional liability and management liability coverages, assumed reinsurance run-off and products liabilit

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/CNA/mda/fy2025/
All MD&A years: /company/CNA/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/CNA/mda/fy2024/): filed 2025-02-11; accession 0000021175-25-000008 (https://www.sec.gov/Archives/edgar/data/21175/000002117525000008/cna-20241231.htm)
- [FY 2023 MD&A](/company/CNA/mda/fy2023/): filed 2024-02-06; accession 0000021175-24-000007 (https://www.sec.gov/Archives/edgar/data/21175/000002117524000007/cna-20231231.htm)
- [FY 2022 MD&A](/company/CNA/mda/fy2022/): filed 2023-02-07; accession 0000021175-23-000006 (https://www.sec.gov/Archives/edgar/data/21175/000002117523000006/cna-20221231.htm)
- [FY 2021 MD&A](/company/CNA/mda/fy2021/): filed 2022-02-08; accession 0000021175-22-000016 (https://www.sec.gov/Archives/edgar/data/21175/000002117522000016/cna-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6331 Fire, Marine & Casualty Insurance) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/CNA.md · JSON record: /company/CNA.json · verified financials: /company/CNA/financials.json / /company/CNA/financials.csv · machine TOC for the whole site: /llms.txt