CNA Financial : First Quarter 2026 Financial Supplement
CNA
Published on 05/04/2026 at 06:03 am EDT
March 31, 2026
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 Ǫuarterly Reports on Form 10-Ǫ.
Table of Contents
Statements of Operations 1
Components of Income (Loss), Per Share Data and Return on Equity 2
Selected Balance Sheet Data and Statements of Cash Flows Data 3
Property C Casualty 4
Specialty 5
Commercial 6
International 7
Life C Group 8
Corporate C Other 9
Investment Summary - Consolidated 10
Investment Summary - Property C Casualty and Corporate C Other 11
Investment Summary - Life C Group 12
Investments - Fixed Maturity Securities by Credit Rating 13
Components of Net Investment Income 14
Net Investment Gains (Losses) 15
Claim C Claim Adjustment Expense Reserve Rollforward 16
Life C Group Policyholder Reserves 17
Definitions and Presentation 18
Statements of Operations
Three months ended March 31
(In millions)
2026
2025
Change
Revenues:
Net earned premiums
$ 2,701
$ 2,626
3
%
Net investment income
610
604
1
Net investment (losses) gains
(18)
(9)
Non-insurance warranty revenue
374
397
Other revenues
10
9
Total revenues
3,677
3,627
1
Claims, Benefits and Expenses:
Insurance claims and policyholders' benefits (re-measurement loss of $19 and $8)
2,175
2,027
Amortization of deferred acquisition costs
476
471
Non-insurance warranty expense
356
385
Other operating expenses
370
363
Interest expense
33
32
Total claims, benefits and expenses
3,410
3,278
(4)
Income (loss) before income tax
267
349
Income tax (expense) benefit
(56)
(75)
Net income (loss)
$ 211
$ 274
(23) %
(In millions, except per share data)
2026
2025
Components of Income (Loss)
Core income (loss)
$ 225
$ 281
Net investment gains (losses)
(14)
(7)
Net income (loss)
$ 211
$ 274
Diluted Earnings (Loss) Per Common Share
Core income (loss)
$ 0.83
$ 1.03
Net investment gains (losses)
(0.05)
(0.03)
Diluted earnings (loss) per share
$ 0.78
$ 1.00
Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic
271.1
271.3
Diluted
272.3
272.6
Return on Equity
Net income (loss) (1)
7.5
%
10.5
%
Core income (loss) (2)
7.2
9.2
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.
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.
(In millions, except per share data)
March 31, 2026
December 31, 2025
Total investments
$ 49,502
$ 50,447
Reinsurance receivables, net of allowance for uncollectible receivables
6,387
6,381
Total assets
68,559
69,443
Insurance reserves
47,774
47,682
Claim and claim adjustment expenses
26,933
26,599
Unearned premiums
7,646
7,635
Future policy benefits
13,195
13,448
Debt
2,972
2,971
Total liabilities
57,702
57,822
Accumulated other comprehensive income (loss) (1)
(1,349)
(1,098)
Total stockholders' equity
10,857
11,621
Book value per common share
$
40.13
$
42.93
Book value per common share excluding AOCI
$
45.12
$
46.99
Outstanding shares of common stock (in millions of shares)
270.5
270.7
Statutory capital and surplus - Combined Continental Casualty Companies (2)
$
11,052
$
11,578
Three Months Ended March 31
2026
2025
Net cash flows provided (used) by operating activities
$
393
$
638
Net cash flows provided (used) by investing activities
444
88
Net cash flows provided (used) by financing activities
(736)
(722)
Net cash flows provided (used) by operating, investing and financing activities
$ 101
$ 4
As of March 31, 2026 and December 31, 2025, AOCI included after-tax cumulative impacts of changes in discount rates used to measure long duration contracts of $406 million and
$192 million.
Statutory capital and surplus as of March 31, 2026 is preliminary.
Property G Casualty - Results of Operations
Three months ended March 31
(In millions)
2026
2025
Change
Gross written premiums
$ 3,733
$ 3,898
(4) %
Gross written premiums ex. warranty captives
3,219
$ 3,214
-
Net written premiums
2,622
2,606
1
Net earned premiums
2,598
2,520
3
Insurance claims and policyholders' benefits
1,878
1,718
Amortization of deferred acquisition costs
476
471
Insurance related administrative expenses
303
291
Underwriting gain (loss)
(59)
40
N/M
Net investment income
375
362
4
Non-insurance warranty revenue
374
397
Other revenues
10
9
Non-insurance warranty expense
356
385
Other expenses
Interest expense
25
-
24
-
Core income (loss) before income tax
319
399
Income tax (expense) benefit on core income (loss)
(71)
(88)
Core income (loss)
$ 248
$ 311
(20) %
Other Performance Metrics
Underwriting gain (loss)
$ (59)
$ 40
N/M %
Catastrophe-related reinstatement premiums
9
-
Catastrophe losses
88
97
(Favorable) unfavorable net prior year loss reserve development
100
61
(Favorable) unfavorable other development-related items (1)
6
2
Effect of (favorable) unfavorable development-related items
106
63
Underlying underwriting gain (loss)
$ 144
$ 200
(28) %
Loss C LAE ratio
71.8
%
67.8
%
(4.0) pts
Expense ratio
29.9
30.2
0.3
Dividend ratio
0.5
0.4
(0.1)
Combined ratio
102.2
%
98.4
%
(3.8) pts
Less: Effect of catastrophe impacts
3.6
3.8
0.2
Less: Effect of (favorable) unfavorable development-related items
4.1
2.5
(1.6)
Underlying combined ratio
94.5
%
92.1
%
(2.4) pts
Rate
2
%
4
%
(2) pts
Renewal premium change
3
%
6
%
(3) pts
Retention
83
%
86
%
(3) pts
New business
$ 581
$ 565
3 %
(1) Other development-related items represent net prior year premium development, the effects of interest accretion on net prior year loss development and the change in allowance for uncollectible reinsurance.
Specialty - Results of Operations
Three months ended March 31
(In millions)
2026
2025
Change
Gross written premiums
$ 1,508
$ 1,672
(10) %
Gross written premiums ex. warranty captives
994
989
1
Net written premiums
834
842
(1)
Net earned premiums
852
830
3
Insurance claims and policyholders' benefits
590
511
Amortization of deferred acquisition costs
197
189
Insurance related administrative expenses
89
88
Underwriting gain (loss)
(24)
42
(157)
Net investment income
142
151
(6)
Non-insurance warranty revenue
374
397
Other revenues
1
1
Non-insurance warranty expense
356
385
Other expenses
Interest expense
12
-
15
-
Core income (loss) before income tax
125
191
Income tax (expense) benefit on core income (loss)
(26)
(41)
Core income (loss)
$ 99
$ 150
(34) %
Other Performance Metrics
Underwriting gain (loss)
$ (24)
$ 42
(157) %
Catastrophe losses
-
-
(Favorable) unfavorable net prior year loss reserve development
45
10
(Favorable) unfavorable other development-related items (1)
5
-
Effect of (favorable) unfavorable development-related items
50
10
Underlying underwriting gain (loss)
$ 26
$ 52
(50) %
Loss C LAE ratio
68.7
%
61.4
%
(7.3) pts
Expense ratio
33.6
33.4
(0.2)
Dividend ratio
0.4
0.3
(0.1)
Combined ratio
102.7
%
95.1
%
(7.6) pts
Less: Effect of catastrophe impacts
Less: Effect of (favorable) unfavorable development-related items
-
5.9
-
1.3
- (4.6)
Underlying combined ratio
96.8
%
93.8
(3.0) pts
Rate
3
%
3
%
- pts
Renewal premium change
5
%
4
%
1 pts
Retention
86
%
89
%
(3) pts
New business
$ 127
$ 112
13 %
(1) Other development-related items represents net prior year premium development, the effects of interest accretion on net prior year loss development and the change in allowance for uncollectible reinsurance.
Commercial - Results of Operations
Three months ended March 31
(In millions)
2026
2025
Change
Gross written premiums
$ 1,828
$ 1,853
(1) %
Net written premiums
1,480
1,498
(1)
Net earned premiums
1,412
1,380
2
Insurance claims and policyholders' benefits
1,084
1,015
Amortization of deferred acquisition costs
206
219
Insurance related administrative expenses
171
163
Underwriting gain (loss)
(49)
(17)
(188)
Net investment income
190
177
7
Other revenues
9
8
Other expenses
11
10
Core income (loss) before income tax
139
158
Income tax (expense) benefit on core income (loss)
(27)
(34)
Core income (loss)
$ 112
$ 124
(10) %
Other Performance Metrics
Underwriting gain (loss)
$ (49)
$ (17)
(188) %
Catastrophe-related reinstatement premiums
9
-
Catastrophe losses
84
86
(Favorable) unfavorable net prior year loss reserve development
55
51
(Favorable) unfavorable other development-related items (1)
1
2
Effect of (favorable) unfavorable development-related items
56
53
Underlying underwriting gain (loss)
$ 100
$ 122
(18) %
Loss C LAE ratio
76.2
%
73.0
%
(3.2) pts
Expense ratio
26.7
27.6
0.9
Dividend ratio
0.6
0.5
(0.1)
Combined ratio
103.5
%
101.1
%
(2.4) pts
Less: Effect of catastrophe impacts
6.4
6.3
(0.1)
Less: Effect of (favorable) unfavorable development-related items
4.0
3.8
(0.2)
Underlying combined ratio
93.1
%
91.0
%
(2.1) pts
Rate
2
%
6
%
(4) pts
Renewal premium change
3
%
7
%
(4) pts
Retention
81
%
84
%
(3) pts
New business
$ 369
$ 370
- %
(1) Other development-related items represents net prior year premium development, the effects of interest accretion on net prior year loss development and the change in allowance for uncollectible reinsurance.
International - Results of Operations
Three months ended March 31
(In millions)
2026
2025
Change
Gross written premiums
$ 397
$ 373
6 %
Net written premiums
308
266
16
Net earned premiums
334
310
8
Insurance claims and policyholders' benefits
204
192
Amortization of deferred acquisition costs
73
63
Insurance related administrative expenses
43
40
Underwriting gain (loss)
14
15
(7)
Net investment income
Other revenues Other expenses
43
-
2
34
-
(1)
26
Core income (loss) before income tax
55
50
Income tax (expense) benefit on core income (loss)
(18)
(13)
Core income (loss)
$ 37
$ 37
- %
Other Performance Metrics
Underwriting gain (loss)
$ 14
$ 15
(7) %
Catastrophe losses
4
11
(Favorable) unfavorable net prior year loss reserve development (Favorable) unfavorable other development-related items (1)
Effect of (favorable) unfavorable development-related items
-
-
-
-
-
-
Underlying underwriting gain (loss)
$ 18
$ 26
(31) %
Loss C LAE ratio
61.0
% 62.1
%
1.1 pts
Expense ratio
Dividend ratio
Combined ratio
34.9
-
95.9
33.3
-
% 95.4
%
(1.6)
-
(0.5) pts
Less: Effect of catastrophe impacts
Less: Effect of (favorable) unfavorable development-related items Underlying combined ratio
1.2
-
94.7
3.6
-
% 91.8
%
2.4
-
(2.9) pts
Rate
(4) %
(2) %
(2) pts
Renewal premium change
(2) %
1 %
(3) pts
Retention
85 %
85 %
- pts
New business
$ 85 $
83
2 %
(1) Other development-related items represents net prior year premium development, the effects of interest accretion on net prior year loss development and the change in allowance for uncollectible reinsurance.
Life G Group - Results of Operations
Three months ended March 31
(In millions)
2026
2025
Net earned premiums
$ 103
$ 106
Net investment income
224
226
Other revenues
-
-
Total operating revenues
327
332
Insurance claims and policyholders' benefits
314
300
Insurance related administrative expenses
29
30
Other expenses
1
-
Total claims, benefits and expenses
344
330
Core income (loss) before income tax
(17)
2
Income tax (expense) benefit on core income (loss)
8
4
Core income (loss)
$ (9)
$ 6
Corporate G Other - Results of Operations
Three months ended March 31
(In millions)
2026
2025
Net earned premiums
$ -
$ -
Net investment income
11
16
Other revenues
-
-
Total operating revenues
11
16
Insurance claims and policyholders' benefits
(17)
9
Insurance related administrative expenses
-
-
Interest expense
33
32
Other expenses
12
18
Total claims, benefits and expenses
28
59
Core income (loss) before income tax
(17)
(43)
Income tax (expense) benefit on core income (loss)
3
7
Core income (loss)
$ (14)
$ (36)
Carrying
(In millions) Value
Gains (Losses)
Carrying Value
Gains (Losses)
Fixed maturity securities:
Corporate and other bonds $ 25,001
States, municipalities and political subdivisions:
$ (592)
$ 25,257
$ (199)
Tax-exempt 4,665
(83)
4,545
(6)
Taxable 3,907
(455)
3,886
(433)
Total states, municipalities and political subdivisions 8,572
(538)
8,431
(439)
RMBS
3,700
(335)
3,695
(316)
CMBS
1,459
(68)
1,483
(62)
Other ABS
3,499
(200)
3,543
(166)
Total asset-backed 8,658
(603)
8,721
(544)
U.S. Treasury and obligations of government-sponsored enterprises 242
(2)
234
(2)
Foreign government
Redeemable preferred stock
749
8
(20)
-
751
8
(13)
-
Total fixed maturity securities
Equities:
43,230
(1,755)
43,402
(1,197)
Common stock
247
-
237
-
Non-redeemable preferred stock
538
-
532
-
Total equities 785
Limited partnership investments:
-
769
-
Hedge funds 314
-
336
-
Private equity funds
Total limited partnership investments
2,509
2,823
-
-
2,436
2,772
-
-
Other invested assets
110
-
105
-
Mortgage loans
1,055
-
1,079
-
Short-term investments
1,499
-
2,320
-
Total investments
$ 49,502
$ (1,755)
$ 50,447
$ (1,197)
Net receivable/(payable) on investment activity
$ (112)
$ 46
Effective duration (in years)
6.3
6.3
Weighted average rating (1)
A
A
RMBS - Residential mortgage-backed securities
CMBS - Commercial mortgage-backed securities
Other ABS - Other asset-backed securities
Asset-backed:
(1) Obligations of the U.S. Government, U.S. Government agencies and U.S. Government-sponsored enterprises were classified as AAA for purposes of calculating the weighted average rating.
Net Unrealized
Net Unrealized
Carrying
Gains
Carrying
Gains
(In millions) Value
(Losses)
Value
(Losses)
Fixed maturity securities:
Corporate and other bonds
$ 14,177
$ (316)
$ 14,244
$ (143)
States, municipalities and political subdivisions:
Tax-exempt
2,497
(172)
2,360
(137)
Taxable
2,569
(363)
2,523
(354)
Total states, municipalities and political subdivisions
Asset-backed:
5,066
(535)
4,883
(491)
RMBS
3,698
(335)
3,693
(316)
CMBS
1,443
(66)
1,467
(61)
Other ABS
2,967
(87)
2,992
(62)
Total asset-backed 8,108
(488)
8,152
(439)
U.S. Treasury and obligations of government-sponsored enterprises 233
(2)
225
(2)
Foreign government
Redeemable preferred stock
703
8
(11)
-
704
8
(6)
-
Total fixed maturity securities
Equities:
28,295
(1,352)
28,216
(1,081)
Common stock
247
-
237
-
Non-redeemable preferred stock
213
-
205
-
Total equities 460
Limited partnership investments:
-
442
-
Hedge funds 278
-
298
-
Private equity funds
2,227
-
2,162
-
Total limited partnership investments
2,505
-
2,460
-
Other invested assets
110
-
105
-
Mortgage loans
878
-
907
-
Short-term investments
1,473
-
2,252
-
Total investments
$ 33,721
$ (1,352)
$ 34,382
$ (1,081)
Net receivable/(payable) on investment activity
$ (97)
$ 43
Effective duration (in years)
4.6
4.5
Weighted average rating (1)
A
A+
(1) Obligations of the U.S. Government, U.S. Government agencies and U.S. Government-sponsored enterprises were classified as AAA for purposes of calculating the weighted
average rating.
Net Unrealized
Net Unrealized
Carrying
Gains
Carrying
Gains
(In millions) Value
(Losses)
Value
(Losses)
Fixed maturity securities:
Corporate and other bonds
$ 10,824
$ (276)
$ 11,013
$ (56)
States, municipalities and political subdivisions:
Tax-exempt
2,168
89
2,185
131
Taxable
1,338
(92)
1,363
(79)
Total states, municipalities and political subdivisions
Asset-backed:
3,506
(3)
3,548
52
RMBS
2
-
2
-
CMBS
16
(2)
16
(1)
Other ABS
532
(113)
551
(104)
Total asset-backed 550
(115)
569
(105)
U.S. Treasury and obligations of government-sponsored enterprises 9
-
9
-
Foreign government
Redeemable preferred stock
46
-
(9)
-
47
-
(7)
-
Total fixed maturity securities
Equities:
14,935
(403)
15,186
(116)
Common stock
-
- -
-
Non-redeemable preferred stock
325
- 327
-
Total equities 325
Limited partnership investments:
-
327
-
Hedge funds 36
-
38
-
Private equity funds
282
-
274
-
Total limited partnership investments
318
-
312
-
Other invested assets
-
-
-
-
Mortgage loans
177
-
172
-
Short-term investments
26
-
68
-
Total investments
$ 15,781
$ (403)
$ 16,065
$ (116)
Net receivable/(payable) on investment activity
$ (15)
$ 3
Effective duration (in years)
9.5
9.7
Weighted average rating (1)
A-
A-
(1) Obligations of the U.S. Government, U.S. Government agencies and U.S. Government-sponsored enterprises were classified as AAA for purposes of calculating the weighted
average rating.
U.S. Government, Government agencies and Government-sponsored
March 31, 2026
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)
subdivisions
-
-
2,221
(54)
5,041
(375)
1,086
(60)
206
(42)
18
(7)
8,572
(538)
Asset-backed:
RMBS
2,999
(240)
625
(98)
8
-
-
-
61
-
7
3
3,700
(335)
CMBS
-
-
542
(6)
565
(29)
242
(12)
91
(7)
19
(14)
1,459
(68)
Other ABS
-
-
475
(16)
296
(78)
1,519
(43)
1,026
(38)
183
(25)
3,499
(200)
Total asset-backed
2,999
(240)
1,642
(120)
869
(107)
1,761
(55)
1,178
(45)
209
(36)
8,658
(603)
U.S. Treasury and obligations of
government-sponsored enterprises
242
(2)
-
-
-
-
-
-
-
-
-
-
242
(2)
Foreign government
-
-
186
(1)
362
(5)
95
(8)
106
(6)
-
-
749
(20)
Redeemable preferred stock
-
-
-
-
-
-
-
-
8
-
-
-
8
-
Total fixed maturity securities
$ 3,241
$ (242)
$ 4,057
$ (176)
$ 7,125
$ (514)
$ 11,088
$ (278)
$ 15,974
$ (462)
$ 1,745
$ (83)
$ 43,230
$ (1,755)
Percentage of total fixed maturity securities
7 %
9 %
16 %
27 %
37 %
4 %
100 %
Corporate and other bonds $ - $ - $ 8 $ (1) $ 853 $ (27) $ 8,146 $ (155) $ 14,476 $ (369) $ 1,518 $ (40) $ 25,001 $ (592) States, municipalities and political
Three months ended March 31 Consolidated
(In millions)
2026
2025
Taxable fixed income securities
$ 500
$ 496
Tax-exempt fixed income securities
52
34
Total fixed income securities
552
530
Common stock
(13)
(2)
Limited partnerships - hedge funds
(4)
8
Limited partnerships - private equity funds
59
48
Total limited partnership and common stock investments
42
54
Other, net of investment expense
16
20
Net investment income
$ 610
$ 604
Effective income yield for fixed income securities portfolio
4.9
%
4.8
%
Limited partnership and common stock return for the period
1.4
2.0
Three months ended March 31
Property G Casualty and Corporate G Other
(In millions)
2026
2025
Taxable fixed income securities
$ 303
$ 304
Tax-exempt fixed income securities
26
9
Total fixed income securities
329
313
Common stock
(13)
(2)
Limited partnerships - hedge funds
(3)
6
Limited partnerships - private equity funds
52
37
Total limited partnership and common stock investments
36
41
Other, net of investment expense
21
24
Net investment income
$ 386
$ 378
Effective income yield for fixed income securities portfolio
4.4
%
4.3
%
Three months ended March 31 Life G Group
(In millions)
2026
2025
Taxable fixed income securities
$ 197
$ 192
Tax-exempt fixed income securities
26
25
Total fixed income securities
223
217
Common stock
-
-
Limited partnerships - hedge funds
(1)
2
Limited partnerships - private equity funds
7
11
Total limited partnership and common stock investments
6
13
Other, net of investment expense
(5)
(4)
Net investment income
$ 224
$ 226
Effective income yield for fixed income securities portfolio
5.7 %
5.7 %
(In millions)
Fixed maturity securities:
2026
2025
Corporate and other bonds
$ (7)
$ (9)
States, municipalities and political subdivisions
(1)
(1)
Asset-backed
(6)
1
Total fixed maturity securities
(14)
(9)
Non-redeemable preferred stock
(4)
-
Net investment gains (losses)
(18)
(9)
Income tax benefit (expense) on net investment gains (losses)
4
2
Net investment gains (losses), after tax
$ (14)
$ (7)
(In millions)
Specialty
Commercial
International
Operations
Life G Group
Other
Operations
Claim C claim adjustment expense reserves, beginning of period
Gross
$ 7,784
$ 12,249
$ 3,376
$ 23,409
$ 591
$ 2,599
$ 26,599
Ceded
1,596
1,553
535
3,684
56
2,242
5,982
Net
6,188
10,696
2,841
19,725
535
357
20,617
Net incurred claim C claim adjustment expenses
581
1,076
204
1,861
9
5
1,875
Net claim C claim adjustment expense payments
(491)
(786)
(162)
(1,439)
(12)
(26)
(1,477)
Foreign currency translation adjustment and other
-
(1)
(40)
(41)
(9)
-
(50)
Claim C claim adjustment expense reserves, end of period Net
6,278
10,985
2,843
20,106
523
336
20,965
Ceded
1,507
1,683
553
3,743
55
2,170
5,968
Gross
$ 7,785
$ 12,668
$ 3,396
$ 23,849
$ 578
$ 2,506
$ 26,933
Three months ended March 31, 2026
PGC
Corporate G
Total
(In millions)
adjustment expenses
Future policy benefits
Total
Beginning of Period
$ 535
$ 13,448
$
13,983
Incurred claims and policyholders' benefits (1)
9
303
312
Benefit and expense payments
(12)
(285)
(297)
Change in discount rate assumptions and other (AOCI)
(9)
(271)
(280)
End of Period
$ 523
$ 13,195
$ 13,718
(In millions)
adjustment expenses
Future policy benefits
Total
Beginning of Period
$ 541
$ 13,158
$
13,699
Incurred claims and policyholders' benefits (1)
34
1,252
1,286
Benefit and expense payments
(44)
(1,165)
(1,209)
Change in discount rate assumptions and other (AOCI)
4
203
207
End of Period
$ 535
$
13,448
$
13,983
Incurred claims and policyholders' benefits above does not agree to Net incurred claims and benefits as reflected in Note J to the Condensed Consolidated Financial Statements included under Part I, Item 1 of the Ǫuarterly Report on Form 10-Ǫ due to the timing of benefit and expense cash flows in determining Future Policy Benefit reserves, along with the allowable expenses in the reserve.
Collectively, CNA Financial Corporation (CNAF) and its subsidiaries are referred to as CNA or the Company.
PCC Operations includes Specialty, Commercial and International.
Life C Group segment includes the individual and group run-off long-term care businesses as well as structured settlement obligations not funded by annuities related to certain property and casualty claimants.
Corporate C 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 asbestos and environmental pollution (ACEP), a legacy portfolio of excess workers' compensation (EWC) policies and certain legacy mass tort reserves.
Management uses the core income (loss) financial measure to monitor the Company's operations for the Specialty, Commercial and International segments. 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. 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 and management believes some investors may find this measure useful to evaluate the Company's primary operations. Please refer to Note J to the Consolidated Financial Statements within the March 31, 2026 Form 10-K for further discussion regarding how the Company manages its business.
In evaluating the results of the Specialty, Commercial and International segments, management uses 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 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 underlying loss ratio excludes the impact of catastrophe-related reinstatement premiums, catastrophe losses and development-related items from the loss ratio. Development-related items represents net prior year loss reserve and premium development, and includes 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. 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. 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.
Management uses 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 other insurance related 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.
This financial supplement may also reference or contain financial measures utilized to monitor the Company's investment portfolio that are not in accordance with GAAP. 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.
For reconciliations of non-GAAP measures to the most comparable GAAP measures and other information, please refer herein and/or to CNA's filings with the Securities and Exchange Commission, available at cna.com.
Gross written premiums ex. warranty captives represents gross written premiums excluding warranty business that is ceded to third-party captives, which primarily consists of insurance policies supporting service contracts for portable electronics and vehicles.
Statutory capital and surplus represents the excess of an insurance company's admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices.
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
Disclaimer
CNA Financial Corporation published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 10:02 UTC.