CNA 10-Q Quarterly Report June 30, 2025

CNA FINANCIAL CORP

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cna-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


			☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30 , 2025


			☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number 1-5823

CNA FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)


Delaware						36-6169860
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


151 N. Franklin		60606
Chicago,	Illinois	(Zip Code)
(Address of principal executive offices)

( 312 ) 822-5000

(Registrant's telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

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

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, Par value $2.50

" CNA "

New York Stock Exchange

NYSE Texas

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of July 31, 2025, 270,665,399 shares of common stock were outstanding.


Item Number		Page Number
	PART I
1.	Condensed Consolidated Financial Statements:	3
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024 (Unaudited)	3
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024 (Unaudited)	4
	Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 (Unaudited)	6
	Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2025 and 2024 (Unaudited)	7
	Notes to Condensed Consolidated Financial Statements (Unaudited)	8
2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	45
3.	Quantitative and Qualitative Disclosures About Market Risk	69
4.	Controls and Procedures	69
	PART II
1	Legal Proceedings	70


6	Exhibits	72

Table of Contents

PART I

Item 1. Condensed Consolidated Financial Statements

CNA Financial Corporation

Condensed Consolidated Statements of Operations (Unaudited)


Periods ended June 30	Three Months				Six Months
(In millions, except per share data)	2025		2024		2025		2024
Revenues
Net earned premiums	$	2,694	$	2,498	$	5,320	$	4,939
Net investment income	662		618		1,266		1,227
Net investment losses	( 46 )		( 10 )		( 55 )		( 32 )
Non-insurance warranty revenue	398		404		795		811
Other revenues	9		9		18		18
Total revenues	3,717		3,519		7,344		6,963
Claims, Benefits and Expenses
Insurance claims and policyholders’ benefits (re-measurement loss of $ 15 , $ 25 , $ 23 and $ 40 )	2,085		1,882		4,112		3,689
Amortization of deferred acquisition costs	469		435		940		879
Non-insurance warranty expense	384		388		769		782
Other operating expenses	368		378		731		715
Interest expense	31		34		63		69
Total claims, benefits and expenses	3,337		3,117		6,615		6,134
Income before income tax	380		402		729		829
Income tax expense	( 81 )		( 85 )		( 156 )		( 174 )
Net income	$	299	$	317	$	573	$	655

Basic earnings per share	$	1.10	$	1.17	$	2.11	$	2.41

Diluted earnings per share	$	1.10	$	1.17	$	2.10	$	2.40

Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic	271.1		271.6		271.2		271.6
Diluted	272.2		272.6		272.4		272.6

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements (Unaudited).

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CNA Financial Corporation

Condensed Consolidated Statements of Comprehensive Income (Unaudited)


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Comprehensive Income
Net income	$	299	$	317	$	573	$	655
Other Comprehensive Income, net of tax
Changes in:
Net unrealized gains and losses on investments with an allowance for credit losses	1		—		( 2 )		2
Net unrealized gains and losses on other investments	72		( 244 )		355		( 461 )
Net unrealized gains and losses on investments	73		( 244 )		353		( 459 )
Impact of changes in discount rates used to measure long-duration contract liabilities	( 3 )		273		( 117 )		614
Foreign currency translation adjustment	128		( 10 )		166		( 42 )
Pension and postretirement benefits	1		6		3		12
Other comprehensive income, net of tax	199		25		405		125
Total comprehensive income	$	498	$	342	$	978	$	780

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements (Unaudited).

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CNA Financial Corporation

Condensed Consolidated Balance Sheets



(In millions, except share data)	June 30, 2025 (Unaudited)		December 31, 2024
Assets
Investments:
Fixed maturity securities at fair value (amortized cost of $ 44,726 and $ 43,481 , less allowance for credit loss of $ 51 and $ 45 )	$	42,799	$	41,111
Equity securities at fair value (cost of $ 684 and $ 632 )	727		659
Limited partnership investments	2,667		2,520
Other invested assets	88		85
Mortgage loans (less allowance for credit loss of $ 40 and $ 35 )	1,040		1,019
Short-term investments	1,727		2,088
Total investments	49,048		47,482
Cash	373		472
Reinsurance receivables (less allowance for uncollectible receivables of $ 22 and $ 21 )	6,417		6,051
Insurance receivables (less allowance for uncollectible receivables of $ 27 and $ 26 )	4,062		3,671
Accrued investment income	461		451
Deferred acquisition costs	1,021		959
Deferred income taxes	759		850
Property and equipment at cost (less accumulated depreciation of $ 338 and $ 314 )	297		295
Goodwill	148		145
Deferred non-insurance warranty acquisition expense	3,441		3,525
Other assets	2,909		2,591
Total assets	$	68,936	$	66,492
Liabilities
Insurance reserves:
Claim and claim adjustment expenses	$	26,203	$	24,976
Unearned premiums	7,890		7,346
Future policy benefits	13,329		13,158
Short-term debt	500		—
Long-term debt	2,475		2,973
Deferred non-insurance warranty revenue	4,421		4,530
Other liabilities (includes $ 24 and $ 47 due to Loews Corporation)	3,457		2,996
Total liabilities	58,275		55,979
Commitments and contingencies (Notes C and G)
Stockholders' Equity
Common stock ($ 2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 270,628,038 and 270,844,681 shares outstanding)	683		683
Additional paid-in capital	2,213		2,229
Retained earnings	9,460		9,686
Accumulated other comprehensive loss	( 1,586 )		( 1,991 )
Treasury stock ( 2,412,205 and 2,195,562 shares), at cost	( 109 )		( 94 )
Total stockholders’ equity	10,661		10,513
Total liabilities and stockholders' equity	$	68,936	$	66,492

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements (Unaudited).

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CNA Financial Corporation

Condensed Consolidated Statements of Cash Flows (Unaudited)


Six months ended June 30
(In millions)	2025		2024
Cash Flows from Operating Activities
Net income	$	573	$	655
Adjustments to reconcile net income to net cash flows provided by operating activities:
Deferred income tax expense	28		31
Trading portfolio activity	( 11 )		( 6 )
Net investment losses	55		32
Equity method investees	( 18 )		( 72 )
Net amortization of investments	( 96 )		( 105 )
Depreciation and amortization	35		34
Changes in:
Receivables, net	( 669 )		( 626 )
Accrued investment income	( 7 )		( 10 )
Deferred acquisition costs	( 49 )		( 55 )
Insurance reserves	1,414		1,255
Other, net	( 55 )		( 13 )
Net cash flows provided by operating activities	1,200		1,120
Cash Flows from Investing Activities
Dispositions:
Fixed maturity securities - sales	1,497		1,611
Fixed maturity securities - maturities, calls and redemptions	1,613		1,109
Equity securities	261		288
Limited partnerships	51		29
Mortgage loans	37		61
Purchases:
Fixed maturity securities	( 3,756 )		( 3,338 )
Equity securities	( 296 )		( 246 )
Limited partnerships	( 192 )		( 140 )
Mortgage loans	( 62 )		( 12 )
Change in other investments	4		5
Change in short-term investments	422		461
Purchases of property and equipment	( 42 )		( 39 )
Other, net	( 8 )		2
Net cash flows used by investing activities	( 471 )		( 209 )
Cash Flows from Financing Activities
Dividends paid to common stockholders	( 798 )		( 786 )
Proceeds from the issuance of debt	—		490
Repayment of debt	—		( 550 )
Purchase of treasury stock	( 34 )		( 20 )
Other, net	( 15 )		( 12 )
Net cash flows used by financing activities	( 847 )		( 878 )
Effect of foreign exchange rate changes on cash	19		( 3 )
Net change in cash	( 99 )		30
Cash, beginning of year	472		345
Cash, end of period	$	373	$	375

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements (Unaudited).

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CNA Financial Corporation

Condensed Consolidated Statements of Stockholders' Equity (Unaudited)


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Common Stock
Balance, beginning of period	$	683	$	683	$	683	$	683
Balance, end of period	683		683		683		683
Additional Paid-in Capital
Balance, beginning of period	2,204		2,201		2,229		2,221
Stock-based compensation	9		9		( 16 )		( 11 )
Balance, end of period	2,213		2,210		2,213		2,210
Retained Earnings
Balance, beginning of period	9,287		9,425		9,686		9,755


Dividends to common stockholders ($ 0.46 , $ 0.44 , $ 2.92 and $ 2.88 per share)	( 126 )		( 119 )		( 799 )		( 787 )
Net income	299		317		573		655
Balance, end of period	9,460		9,623		9,460		9,623
Accumulated Other Comprehensive Loss
Balance, beginning of period	( 1,785 )		( 2,572 )		( 1,991 )		( 2,672 )


Other comprehensive income	199		25		405		125
Balance, end of period	( 1,586 )		( 2,547 )		( 1,586 )		( 2,547 )
Treasury Stock
Balance, beginning of period	( 110 )		( 75 )		( 94 )		( 94 )
Stock-based compensation	1		—		19		19
Purchase of treasury stock	—		( 20 )		( 34 )		( 20 )
Balance, end of period	( 109 )		( 95 )		( 109 )		( 95 )
Total stockholders' equity	$	10,661	$	9,874	$	10,661	$	9,874

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements (Unaudited).

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CNA Financial Corporation

Notes to Condensed Consolidated Financial Statements

Note A. General

Basis of Presentation

The Condensed Consolidated Financial Statements include the accounts of CNA Financial Corporation (CNAF) and its subsidiaries. Collectively, CNAF and its subsidiaries are referred to as CNA or the Company. Loews Corporation (Loews) owned approximately 92 % of the outstanding common stock of CNAF as of June 30, 2025.

The accompanying Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Intercompany amounts have been eliminated. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, including certain financial statement notes, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in CNAF's Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) for the year ended December 31, 2024, including the summary of significant accounting policies in Note A. The preparation of Condensed Consolidated Financial Statements in conformity with GAAP requires management 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 the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.

The interim financial data as of June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 is unaudited. However, in the opinion of management, the interim data includes all adjustments, including normal recurring adjustments, necessary for a fair statement of the Company's results for the interim periods in accordance with GAAP. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year.

Accounting Standards Pending Adoption

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The updated accounting guidance requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024. Therefore, for the Company, the guidance is effective for the Annual Report on Form 10-K for the year ended December 31, 2025.

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . The updated accounting guidance requires disaggregated disclosure of specified expense categories. The guidance also requires disclosure of total selling expenses and how the Company defines selling expenses. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027. Prospective application is required, with retrospective application permitted. The Company is currently evaluating the effect the updated guidance will have on the Company's financial statement disclosures.

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Note B. Earnings Per Share Data

Earnings per share is based on weighted average number of outstanding common shares. Basic earnings per share excludes the impact of dilutive securities and is computed by dividing Net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.

The following table presents the income and share data used in the basic and diluted earnings per share computations.


Periods ended June 30	Three Months				Six Months
(In millions, except per share data)	2025		2024		2025		2024
Net income	$	299	$	317	$	573	$	655

Common Stock and Common Stock Equivalents
Basic
Weighted average shares outstanding	271.1		271.6		271.2		271.6
Diluted
Weighted average shares outstanding	271.1		271.6		271.2		271.6
Dilutive effect of stock-based awards under compensation plans	1.1		1.0		1.2		1.0
Total	272.2		272.6		272.4		272.6

Earnings per share
Basic	$	1.10	$	1.17	$	2.11	$	2.41
Diluted	$	1.10	$	1.17	$	2.10	$	2.40

Excluded from the calculation of diluted earnings per share is the impact of potential shares attributable to exercises or conversions into common stock under stock-based employee compensation plans that would have been antidilutive during the respective periods.

The Company repurchased 700,000 and 450,000 shares of CNAF common stock at an aggregate cost of $ 34 million and $ 20 million during the six months ended June 30, 2025 and 2024.

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Note C. Investments

The significant components of Net investment income are presented in the following table.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Fixed maturity securities	$	536	$	511	$	1,058	$	1,013
Equity securities	27		13		33		35
Limited partnership investments	81		74		137		128
Mortgage loans	16		14		32		29
Short-term investments	14		20		33		48
Trading portfolio	3		—		4		1
Other	8		7		14		15
Gross investment income	685		639		1,311		1,269
Investment expense	( 23 )		( 21 )		( 45 )		( 42 )
Net investment income	$	662	$	618	$	1,266	$	1,227
Net investment income (loss) recognized due to the change in fair value of common stock held as of June 30, 2025 and 2024	$	15	$	2	$	15	$	11

Net investment gains (losses) are presented in the following table.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Net investment gains (losses):
Fixed maturity securities:
Gross gains	$	5	$	13	$	18	$	27
Gross losses	( 53 )		( 25 )		( 75 )		( 71 )
Net investment gains (losses) on fixed maturity securities	( 48 )		( 12 )		( 57 )		( 44 )
Equity securities	6		1		6		12

Mortgage loans	( 5 )		—		( 5 )		—
Short-term investments and other	1		1		1		—
Net investment gains (losses)	$	( 46 )	$	( 10 )	$	( 55 )	$	( 32 )
Net investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock held as of June 30, 2025 and 2024	$	6	$	1	$	4	$	12

The available-for-sale impairment losses (gains) recognized in earnings by asset type are presented in the following table. The table includes losses (gains) on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	4	$	6	$	11	$	15
Asset-backed	5		—		5		5
Impairment losses (gains) recognized in earnings	$	9	$	6	$	16	$	20

The Company also recognized $ 5 million of impairment losses on mortgage loans during the three and six months ended June 30, 2025 due to changes in expected credit losses. There were no impairment losses recognized on mortgage loans during the three and six months ended June 30, 2024.

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The following tables present a summary of fixed maturity securities.


June 30, 2025	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	26,205	$	566	$	1,069	$	14	$	25,688
States, municipalities and political subdivisions	8,044		223		892		—		7,375
Asset-backed:
Residential mortgage-backed	3,947		25		427		—		3,545
Commercial mortgage-backed	1,756		17		107		18		1,648
Other asset-backed	3,783		25		213		19		3,576
Total asset-backed	9,486		67		747		37		8,769
U.S. Treasury and obligations of government-sponsored enterprises	231		—		5		—		226
Foreign government	744		7		26		—		725

Total fixed maturity securities available-for-sale	44,710		863		2,739		51		42,783
Total fixed maturity securities trading	16		—		—		—		16
Total fixed maturity securities	$	44,726	$	863	$	2,739	$	51	$	42,799


December 31, 2024	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	25,839	$	423	$	1,305	$	13	$	24,944
States, municipalities and political subdivisions	7,396		243		835		—		6,804
Asset-backed:
Residential mortgage-backed	3,725		7		488		—		3,244
Commercial mortgage-backed	1,830		11		142		18		1,681
Other asset-backed	3,770		24		239		14		3,541
Total asset-backed	9,325		42		869		32		8,466
U.S. Treasury and obligations of government-sponsored enterprises	220		1		1		—		220
Foreign government	701		6		30		—		677

Total fixed maturity securities available-for-sale	43,481		715		3,040		45		41,111
Total fixed maturity securities trading	—		—		—		—		—
Total fixed maturity securities	$	43,481	$	715	$	3,040	$	45	$	41,111

Table of Contents

The following tables present the estimated fair value and gross unrealized losses of available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by the length of time in which the securities have continuously been in that position.


	Less than 12 Months				12 Months or Longer				Total
June 30, 2025	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	4,252	$	135	$	9,515	$	934	$	13,767	$	1,069
States, municipalities and political subdivisions	1,424		74		2,938		818		4,362		892
Asset-backed:
Residential mortgage-backed	372		9		1,966		418		2,338		427
Commercial mortgage-backed	99		1		959		106		1,058		107
Other asset-backed	580		18		1,419		195		1,999		213
Total asset-backed	1,051		28		4,344		719		5,395		747
U.S. Treasury and obligations of government-sponsored enterprises	55		3		19		2		74		5
Foreign government	145		3		294		23		439		26
Total	$	6,927	$	243	$	17,110	$	2,496	$	24,037	$	2,739


	Less than 12 Months				12 Months or Longer				Total
December 31, 2024	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	5,846	$	165	$	10,388	$	1,140	$	16,234	$	1,305
States, municipalities and political subdivisions	1,247		52		2,967		783		4,214		835
Asset-backed:
Residential mortgage-backed	849		22		2,010		466		2,859		488
Commercial mortgage-backed	230		3		988		139		1,218		142
Other asset-backed	680		21		1,557		218		2,237		239
Total asset-backed	1,759		46		4,555		823		6,314		869
U.S. Treasury and obligations of government-sponsored enterprises	49		1		41		—		90		1
Foreign government	118		3		368		27		486		30
Total	$	9,019	$	267	$	18,319	$	2,773	$	27,338	$	3,040

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The following table presents the estimated fair value and gross unrealized losses of available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by ratings distribution.


	June 30, 2025				December 31, 2024
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
U.S. Government, Government agencies and Government-sponsored enterprises	$	2,086	$	322	$	2,567	$	373
AAA	1,608		280		1,830		283
AA	4,234		735		4,257		730
A	5,901		523		6,340		582
BBB	9,531		787		11,548		980
Non-investment grade	677		92		796		92
Total	$	24,037	$	2,739	$	27,338	$	3,040

Based on current facts and circumstances, the Company believes the unrealized losses presented in the June 30, 2025 securities in a gross unrealized loss position tables above are not indicative of the ultimate collectability of the current amortized cost of the securities, but rather are primarily attributable to changes in risk-free interest rates. In reaching this determination, the Company considered the volatility in risk-free rates and credit spreads as well as the fact that its unrealized losses are concentrated in investment grade issuers. Additionally, the Company has no current intent to sell securities with unrealized losses, nor is it more likely than not that it will be required to sell prior to recovery of amortized cost; accordingly, the Company has determined that there are no additional impairment losses to be recorded as of June 30, 2025.

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The following tables present the activity related to the allowance on available-for-sale securities with credit impairments and purchased credit-deteriorated (PCD) assets. Accrued interest receivable on available-for-sale fixed maturity securities totaled $ 451 million, $ 442 million, and $ 444 million as of June 30, 2025, December 31, 2024, and June 30, 2024 and is excluded from the estimate of expected credit losses and the amortized cost basis in the tables included within this Note.


(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of April 1, 2025	$	15	$	32	$	47
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	3		—		3
Available-for-sale securities accounted for as PCD assets	—		—		—

Reductions to the allowance for credit losses:
Securities disposed during the period (realized)	6		—		6
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	—		—		—
Write-offs charged against the allowance	—		—		—
Recoveries of amounts previously written off	—		—		—

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	2		5		7
Balance as of June 30, 2025	$	14	$	37	$	51



(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of April 1, 2024	$	3	$	17	$	20
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	—		—		—
Available-for-sale securities accounted for as PCD assets	—		—		—

Reductions to the allowance for credit losses:
Securities disposed during the period (realized)	3		1		4
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	—		—		—
Write-offs charged against the allowance	—		—		—
Recoveries of amounts previously written off	—		—		—

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	—		1		1
Balance as of June 30, 2024	$	—	$	17	$	17

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(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of January 1, 2025	$	13	$	32	$	45
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	3		—		3
Available-for-sale securities accounted for as PCD assets	—		—		—

Reductions to the allowance for credit losses:
Securities disposed during the period (realized)	6		—		6
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	—		—		—
Write-offs charged against the allowance	—		—		—
Recoveries of amounts previously written off	—		—		—

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	4		5		9
Balance as of June 30, 2025	$	14	$	37	$	51



(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of January 1, 2024	$	4	$	12	$	16
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	—		—		—
Available-for-sale securities accounted for as PCD assets	—		—		—

Reductions to the allowance for credit losses:
Securities disposed during the period (realized)	3		1		4
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	1		—		1
Write-offs charged against the allowance	—		—		—
Recoveries of amounts previously written off	—		—		—

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	—		6		6
Balance as of June 30, 2024	$	—	$	17	$	17

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Contractual Maturity

The following table presents available-for-sale fixed maturity securities by contractual maturity.


	June 30, 2025				December 31, 2024
(In millions)	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,627	$	1,611	$	1,761	$	1,753
Due after one year through five years	12,083		11,843		11,678		11,403
Due after five years through ten years	12,865		12,467		13,134		12,415
Due after ten years	18,135		16,862		16,908		15,540
Total	$	44,710	$	42,783	$	43,481	$	41,111

Actual maturities may differ from contractual maturities because certain securities may be called or prepaid. Securities not due at a single date are allocated based on weighted average life.

Investment Commitments

As part of its overall investment strategy, the Company invests in various assets which require future purchase, sale or funding commitments. These investments are recorded once funded, and the related commitments may include future capital calls from various third-party limited partnerships, signed and accepted mortgage loan applications, and obligations related to private placement securities. As of June 30, 2025, the Company had commitments to purchase or fund approximately $ 1,805 million and sell approximately $ 80 million under the terms of these investments.

Mortgage Loans

The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination. The primary credit quality indicators utilized are debt service coverage ratios (DSCR) and loan-to-value ratios (LTV).


June 30, 2025	Mortgage Loans Amortized Cost Basis by Origination Year (1)
(In millions)	2025		2024		2023		2022		2021		Prior		Total
DSCR ≥1.6x
LTV less than 55%	$	—	$	—	$	33	$	6	$	5	$	213	$	257
LTV 55% to 65%	12		—		12		14		6		16		60
LTV greater than 65%	—		—		—		30		12		—		42
DSCR 1.2x - 1.6x
LTV less than 55%	—		68		28		5		2		130		233
LTV 55% to 65%	13		33		31		21		30		36		164
LTV greater than 65%	—		—		—		46		—		—		46
DSCR ≤1.2
LTV less than 55%	—		—		6		—		—		21		27
LTV 55% to 65%	37		—		16		74		—		20		147
LTV greater than 65%	—		—		—		35		21		48		104
Total	$	62	$	101	$	126	$	231	$	76	$	484	$	1,080

(1) The values in the table above reflect DSCR on a standardized amortization period and LTV based on the most recent appraised values trended forward using changes in a commercial real estate price index.

As of June 30, 2025, accrued interest receivable on mortgage loans totaled $ 4 million and is excluded from the amortized cost basis disclosed in the table above and the estimate of expected credit losses.

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Note D. Fair Value

Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable.

Level 1 - Quoted prices for identical instruments in active markets.

Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets.

Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are not observable.

Prices may fall within Level 1, 2 or 3 depending upon the methodology and inputs used to estimate fair value for each specific security. In general, the Company seeks to price securities using third-party pricing services. Securities not priced by pricing services are submitted to independent brokers for valuation and, if those are not available, internally developed pricing models are used to value assets using a methodology and inputs the Company believes market participants would use to value the assets. Prices obtained from third-party pricing services or brokers are not adjusted by the Company.

The Company performs control procedures over information obtained from pricing services and brokers to ensure prices received represent a reasonable estimate of fair value and to confirm representations regarding whether inputs are observable or unobservable. Procedures may include i) the review of pricing service methodologies or broker pricing qualifications, ii) back-testing, where past fair value estimates are compared to actual transactions executed in the market on similar dates, iii) exception reporting, where period-over-period changes in price are reviewed and challenged with the pricing service or broker based on exception criteria, and iv) deep dives, where the Company performs an independent analysis of the inputs and assumptions used to price individual securities.

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Assets and Liabilities Measured at Fair Value

Assets and liabilities measured at fair value on a recurring basis are presented in the following tables. Corporate bonds and other includes obligations of the United States of America (U.S.) Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.


June 30, 2025							Total Assets/Liabilities at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate bonds and other	$	229	$	25,038	$	1,388	$	26,655
States, municipalities and political subdivisions	—		7,331		44		7,375
Asset-backed	—		7,883		886		8,769
Total fixed maturity securities	229		40,252		2,318		42,799
Equity securities:
Common stock	213		—		10		223
Non-redeemable preferred stock	35		469		—		504
Total equity securities	248		469		10		727
Short-term and other	1,511		45		—		1,556
Total assets	$	1,988	$	40,766	$	2,328	$	45,082



Total liabilities	$	—	$	—	$	—	$	—


December 31, 2024							Total Assets/Liabilities at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate bonds and other	$	223	$	24,340	$	1,278	$	25,841
States, municipalities and political subdivisions	—		6,762		42		6,804
Asset-backed	—		7,590		876		8,466
Total fixed maturity securities	223		38,692		2,196		41,111
Equity securities:
Common stock	162		—		18		180
Non-redeemable preferred stock	36		441		2		479
Total equity securities	198		441		20		659
Short-term and other	1,852		70		—		1,922
Total assets	$	2,273	$	39,203	$	2,216	$	43,692



Total liabilities	$	—	$	—	$	—	$	—

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The tables below present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3).


Level 3 (In millions)	Corporate bonds and other		States, municipalities and political subdivisions		Asset-backed		Equity securities		Total
Balance as of April 1, 2025	$	1,351	$	44	$	889	$	17	$	2,301
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	1		—		( 4 )		—		( 3 )
Reported in Net investment income	—		—		5		—		5
Reported in Other comprehensive income (loss)	16		—		( 4 )		—		12
Total realized and unrealized investment gains (losses)	17		—		( 3 )		—		14
Purchases	44		—		22		—		66
Sales	—		—		—		( 7 )		( 7 )
Settlements	( 24 )		—		( 22 )		—		( 46 )
Transfers into Level 3	—		—		—		—		—
Transfers out of Level 3	—		—		—		—		—
Balance as of June 30, 2025	$	1,388	$	44	$	886	$	10	$	2,328
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2025 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	( 1 )	$	( 1 )
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2025 recognized in Other comprehensive income (loss) in the period	16		—		( 4 )		—		12


Level 3 (In millions)	Corporate bonds and other		States, municipalities and political subdivisions		Asset-backed		Equity securities		Total
Balance as of April 1, 2024	$	1,082	$	43	$	871	$	11	$	2,007
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	—		—		( 3 )		—		( 3 )
Reported in Net investment income	—		—		5		—		5
Reported in Other comprehensive income (loss)	( 8 )		—		( 11 )		—		( 19 )
Total realized and unrealized investment gains (losses)	( 8 )		—		( 9 )		—		( 17 )
Purchases	72		—		55		3		130
Sales	—		—		( 5 )		—		( 5 )
Settlements	( 17 )		—		( 25 )		—		( 42 )
Transfers into Level 3	—		—		—		—		—
Transfers out of Level 3	—		—		—		—		—
Balance as of June 30, 2024	$	1,129	$	43	$	887	$	14	$	2,073
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2024 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	—	$	—
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2024 recognized in Other comprehensive income (loss) in the period	( 8 )		—		( 11 )		—		( 19 )

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Level 3 (In millions)	Corporate bonds and other		States, municipalities and political subdivisions		Asset-backed		Equity securities		Total
Balance as of January 1, 2025	$	1,278	$	42	$	876	$	20	$	2,216
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	1		—		( 4 )		2		( 1 )
Reported in Net investment income	—		—		9		( 1 )		8
Reported in Other comprehensive income (loss)	37		2		( 3 )		—		36
Total realized and unrealized investment gains (losses)	38		2		2		1		43
Purchases	99		—		49		—		148
Sales	—		—		—		( 7 )		( 7 )
Settlements	( 42 )		—		( 41 )		( 4 )		( 87 )
Transfers into Level 3	15		—		—		—		15
Transfers out of Level 3	—		—		—		—		—
Balance as of June 30, 2025	$	1,388	$	44	$	886	$	10	$	2,328
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2025 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	( 1 )	$	( 1 )
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2025 recognized in Other comprehensive income (loss) in the period	37		2		( 3 )		—		36


Level 3 (In millions)	Corporate bonds and other		States, municipalities and political subdivisions		Asset-backed		Equity securities		Total
Balance as of January 1, 2024	$	1,045	$	44	$	901	$	24	$	2,014
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	—		—		( 7 )		—		( 7 )
Reported in Net investment income	—		—		11		6		17
Reported in Other comprehensive income (loss)	( 20 )		( 1 )		( 16 )		—		( 37 )
Total realized and unrealized investment gains (losses)	( 20 )		( 1 )		( 12 )		6		( 27 )
Purchases	146		—		73		3		222
Sales	—		—		( 14 )		( 19 )		( 33 )
Settlements	( 53 )		—		( 42 )		—		( 95 )
Transfers into Level 3	11		—		—		—		11
Transfers out of Level 3	—		—		( 19 )		—		( 19 )
Balance as of June 30, 2024	$	1,129	$	43	$	887	$	14	$	2,073
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2024 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	2	$	2
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2024 recognized in Other comprehensive income (loss) in the period	( 22 )		( 1 )		( 16 )		—		( 39 )

Securities may be transferred in or out of levels within the fair value hierarchy based on the availability of observable market information and quoted prices used to determine the fair value of the security. The availability of observable market information and quoted prices varies based on market conditions and trading volume.

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Valuation Methodologies and Inputs

The following section describes the valuation methodologies and relevant inputs used to measure different financial instruments at fair value, including an indication of the level in the fair value hierarchy in which the instruments are generally classified.

Fixed Maturity Securities

Level 1 securities include highly liquid government securities and exchange traded bonds, valued using quoted market prices. Level 2 securities include most other fixed maturity securities as the significant inputs are observable in the marketplace. All classes of Level 2 fixed maturity securities are valued using a methodology based on information generated by market transactions involving identical or comparable assets, a discounted cash flow methodology, or a combination of both when necessary. Common inputs for all classes of fixed maturity securities include prices from recently executed transactions of similar securities, marketplace quotes, benchmark yields, spreads off benchmark yields, interest rates and U.S. Treasury or swap curves. Specifically for asset-backed securities, key inputs include prepayment and default projections based on past performance of the underlying collateral and current market data. Fixed maturity securities are primarily assigned to Level 3 in cases where broker/dealer quotes are significant inputs to the valuation and there is a lack of transparency as to whether these quotes are based on information that is observable in the marketplace. Level 3 securities also include private placement debt securities whose fair value is determined using internal models with some inputs that are not market observable.

Equity Securities

Level 1 equity securities include publicly traded securities valued using quoted market prices. Level 2 securities are primarily valued using pricing for similar securities, recently executed transactions and other pricing models utilizing market observable inputs. Level 3 securities are primarily priced using broker/dealer quotes and internal models with some inputs that are not market observable.

Short-Term and Other Invested Assets

Securities that are actively traded or have quoted prices are classified as Level 1. These securities include money market funds and treasury bills. Level 2 primarily includes non-U.S. government securities for which all inputs are market observable. Fixed maturity securities purchased within one year of maturity are classified consistent with fixed maturity securities discussed above. Short-term investments as presented in the tables above differ from the amounts presented on the Condensed Consolidated Balance Sheets because certain short-term investments, such as time deposits, are not measured at fair value.

As of June 30, 2025 and December 31, 2024, there were $ 82 million and $ 79 million of overseas deposits within Other invested assets, which can be redeemed at net asset value in 90 days or less. Overseas deposits are excluded from the fair value hierarchy because their fair value is recorded using the net asset value per share (or equivalent) practical expedient.

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Significant Unobservable Inputs

The following tables present quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurements of Level 3 assets. Valuations for assets and liabilities not presented in the tables below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of these unobservable inputs is neither provided nor reasonably available to the Company. The weighted average rate is calculated based on fair value.

June 30, 2025

Estimated Fair Value
(In millions)

Valuation Technique(s)

Unobservable Input(s)

Range
(Weighted Average)

Fixed maturity securities

1,867

Discounted cash flow

Credit spread

1 % - 7 % ( 2 %)

December 31, 2024

Estimated Fair Value
(In millions)

Valuation Technique(s)

Unobservable Input(s)

Range
(Weighted Average)

Fixed maturity securities

1,724

Discounted cash flow

Credit spread

1 % - 6 % ( 2 %)

For fixed maturity securities, an increase to the credit spread assumptions would result in a lower fair value measurement.

Financial Assets and Liabilities Not Measured at Fair Value

The carrying amount and estimated fair value of the Company's financial assets and liabilities which are not measured at fair value on the Condensed Consolidated Balance Sheets are presented in the following tables.


June 30, 2025	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	1,040	$	—	$	—	$	1,026	$	1,026
Liabilities
Short-term debt	$	500	$	—	$	499	$	—	$	499
Long-term debt	2,475		—		2,435		—		2,435


December 31, 2024	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	1,019	$	—	$	—	$	987	$	987

Liabilities
Short-term debt	$	—	$	—	$	—	$	—	$	—
Long-term debt	2,973		—		2,885		—		2,885

The carrying amounts reported on the Condensed Consolidated Balance Sheets for Cash, Short-term investments not carried at fair value, Accrued investment income and certain Other assets and Other liabilities approximate fair value due to the short term nature of these items. These assets and liabilities are not listed in the tables above.

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Note E. Claim and Claim Adjustment Expense Reserves

Claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including incurred but not reported (IBNR) claims as of the reporting date. The Company's reserve projections are based primarily on detailed analysis of the facts in each case, the Company's experience with similar cases and various historical development patterns. Consideration is given to historical patterns such as claim reserving trends and settlement practices, loss payments, pending levels of unpaid claims and product mix, economic, medical and social inflation, and public attitudes. All of these factors can affect the estimation of claim and claim adjustment expense reserves.

Establishing claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves for catastrophic events that have occurred, is an estimation process. Many factors can ultimately affect the final settlement of a claim and, therefore, the necessary reserve. Changes in the law, results of litigation, medical costs, the cost of repair materials and labor rates can affect ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of the claim, the more variable the ultimate settlement amount can be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably estimable than long-tail claims, such as workers' compensation, general liability and professional liability claims. Claim and claim adjustment expense reserves are also maintained for the Company's structured settlement obligations. In developing the claim and claim adjustment expense reserve estimates for structured settlement obligations, the Company's actuaries review mortality experience on an annual basis. Adjustments to prior year reserve estimates, if necessary, are reflected in the results of operations in the period that the need for such adjustments is determined. There can be no assurance that the Company's ultimate cost for insurance losses will not exceed current estimates.

Catastrophes are an inherent risk of the property and casualty insurance business and have contributed to material period-to-period fluctuations in our results of operations and/or equity. The Company reported catastrophe losses, net of reinsurance, of $ 62 million and $ 159 million for the three and six months ended June 30, 2025 and $ 82 million and $ 170 million for the three and six months ended June 30, 2024 driven by severe weather related events.

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Liability for Unpaid Claim and Claim Adjustment Expenses

The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves.


For the six months ended June 30
(In millions)	2025		2024
Reserves, beginning of year:
Gross	$	24,976	$	23,304
Ceded	5,713		5,141
Net reserves, beginning of year	19,263		18,163
Net incurred claim and claim adjustment expenses:
Provision for insured events of current year	3,309		3,039
Increase (decrease) in provision for insured events of prior years	189		19
Amortization of discount	20		20
Total net incurred (1)	3,518		3,078
Net payments attributable to:
Current year events	( 316 )		( 308 )
Prior year events	( 2,391 )		( 2,259 )
Total net payments	( 2,707 )		( 2,567 )
Foreign currency translation adjustment and other	199		( 58 )
Net reserves, end of period	20,273		18,616
Ceded reserves, end of period	5,930		5,358
Gross reserves, end of period	$	26,203	$	23,974

(1) Total net incurred does not agree to Insurance claims and policyholders' benefits as reflected on the Condensed Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and benefit expenses related to future policy benefits and policyholders' dividends, which are not reflected in the table above.

Net Prior Year Development

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 (development). These changes can be favorable or unfavorable. The following table presents development recorded for the Specialty, Commercial, International and Corporate & Other segments.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Pretax (favorable) unfavorable development:
Specialty	$	—	$	( 3 )	$	10	$	( 8 )
Commercial	( 4 )		( 6 )		47		( 8 )
International	—		( 3 )		—		( 3 )
Corporate & Other	112		35		134		35
Total pretax (favorable) unfavorable development	$	108	$	23	$	191	$	16

Following the second quarter annual review of Corporate & Other reserves, including legacy mass tort exposures, unfavorable development of $ 112 million was recorded within the Corporate & Other segment for the three months ended June 30, 2025, largely associated with legacy mass tort abuse claim activity, the on-going effects of social inflation, and the anticipated agreement in principle with regards to the Diocese of Rochester. Unfavorable development of $ 134 million was recorded for the six months ended June 30, 2025, primarily driven by the second quarter change. Unfavorable development of $ 35 million was recorded within the Corporate & Other segment for the three and six months ended June 30, 2024, largely associated with legacy mass tort abuse reserves.

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Specialty

The following table presents further detail of the development recorded for the Specialty segment.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Pretax (favorable) unfavorable development:
Medical Professional Liability	$	—	$	( 2 )	$	—	$	( 2 )
Other Professional Liability and Management Liability	18		17		18		17
Surety	( 22 )		( 8 )		( 22 )		( 26 )
Warranty	—		—		10		13
Other	4		( 10 )		4		( 10 )
Total pretax (favorable) unfavorable development	$	—	$	( 3 )	$	10	$	( 8 )

Three Months

2025

Unfavorable development in other professional liability and management liability was primarily due to higher than expected claim severity and frequency in the Company's professional errors and omissions (E&O) business.

Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in multiple accident years.

2024

Favorable development in other was primarily due to favorable loss emergence in casualty coverages associated with healthcare products.

Six Months

2025

Unfavorable development in other professional liability and management liability was primarily due to higher than expected claim severity and frequency in the Company's professional E&O business.

Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in multiple accident years.

Unfavorable development in warranty was primarily due to higher than expected frequency and severity in the most recent accident year for auto warranty.

2024

Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in multiple accident years.

Unfavorable development in warranty was primarily due to higher than expected frequency and severity in a recent accident year.

Favorable development in other was primarily due to favorable loss emergence in casualty coverages associated with healthcare products.

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Commercial

The following table presents further detail of the development recorded for the Commercial segment.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Pretax (favorable) unfavorable development:
Commercial Auto	$	—	$	21	$	50	$	21
General Liability	62		19		62		19
Workers' Compensation	( 66 )		( 47 )		( 65 )		( 49 )
Property and Other	—		1		—		1
Total pretax (favorable) unfavorable development	$	( 4 )	$	( 6 )	$	47	$	( 8 )

Three Months

2025

Unfavorable development in general liability was due to higher than expected claim severity in multiple accident years going back to 2016.

Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.

2024

Unfavorable development in commercial auto was due to higher than expected claim severity in recent accident years.

Unfavorable development in general liability was due to higher than expected claim severity in multiple accident years going back to 2014 and prior.

Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.

Six Months

2025

Unfavorable development in commercial auto was due to higher than expected claim severity largely in the Company’s construction business in the most recent accident year.

Unfavorable development in general liability was due to higher than expected claim severity in multiple accident years going back to 2016.

Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.

2024

Unfavorable development in commercial auto was due to higher than expected claim severity in recent accident years.

Unfavorable development in general liability was due to higher than expected claim severity in multiple accident years going back to 2014 and prior.

Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.

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International

The following table presents further detail of the development recorded for the International segment.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Pretax (favorable) unfavorable development:
Commercial	$	( 3 )	$	6	$	( 3 )	$	6
Specialty	4		( 9 )		4		( 9 )
Other	( 1 )		—		( 1 )		—
Total pretax (favorable) unfavorable development	$	—	$	( 3 )	$	—	$	( 3 )

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Asbestos & Environmental Pollution (A&EP) Reserves

In 2010, Continental Casualty Company (CCC) together with several of the Company’s insurance subsidiaries completed a transaction with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc., under which substantially all of the Company’s legacy A&EP liabilities were ceded to NICO through a Loss Portfolio Transfer (LPT). At the effective date of the transaction, the Company ceded approximately $ 1.6 billion of net A&EP claim and allocated claim adjustment expense reserves to NICO under a retroactive reinsurance agreement with an aggregate limit of $ 4.0 billion. The $ 1.6 billion of claim and allocated claim adjustment expense reserves ceded to NICO was net of $ 1.2 billion of ceded claim and allocated claim adjustment expense reserves under existing third-party reinsurance contracts. The NICO LPT aggregate reinsurance limit also covers credit risk on the existing third-party reinsurance related to these liabilities. The Company paid NICO a reinsurance premium of $ 2.0 billion and transferred to NICO billed third-party reinsurance receivables related to A&EP claims with a net book value of $ 215 million, resulting in total consideration of $ 2.2 billion.

In years subsequent to the effective date of the LPT, the Company recognized adverse prior year development on its A&EP reserves resulting in additional amounts ceded under the LPT. As a result, the cumulative amounts ceded under the LPT have exceeded the $ 2.2 billion consideration paid, resulting in the NICO LPT moving into a gain position, requiring retroactive reinsurance accounting. Under retroactive reinsurance accounting, this gain is deferred and only recognized in earnings in proportion to actual paid recoveries under the LPT. Over the life of the contract, there is no economic impact as long as any additional losses incurred are within the limit of the LPT. In a period in which the Company recognizes a change in the estimate of A&EP reserves that increases or decreases the amounts ceded under the LPT, the proportion of actual paid recoveries to total ceded losses is affected and the change in the deferred gain is recognized in earnings as if the revised estimate of ceded losses was available at the effective date of the LPT. The effect of the deferred retroactive reinsurance benefit is recorded in Insurance claims and policyholders' benefits in the Condensed Consolidated Statements of Operations.

The impact of the LPT on the Condensed Consolidated Statements of Operations was the recognition of a retroactive reinsurance benefit of $ 8 million and $ 13 million for the three months ended June 30, 2025 and 2024 and $ 25 million for the six months ended June 30, 2025 and 2024. As of June 30, 2025 and December 31, 2024, the cumulative amounts ceded under the LPT were $ 3.7 billion. The unrecognized deferred retroactive reinsurance benefit was $ 400 million and $ 425 million as of June 30, 2025 and December 31, 2024 and is included within Other liabilities on the Condensed Consolidated Balance Sheets.

NICO established a collateral trust account as security for its obligations to the Company. The fair value of the collateral trust account was $ 2.2 billion as of June 30, 2025. In addition, Berkshire Hathaway Inc. guaranteed the payment obligations of NICO up to the aggregate reinsurance limit as well as certain of NICO’s performance obligations under the trust agreement. NICO is responsible for claims handling and billing and collection from third-party reinsurers related to the majority of the Company’s A&EP claims.

Credit Risk for Ceded Reserves

The majority of the Company’s outstanding voluntary reinsurance receivables are due from reinsurers with financial strength ratings of A- or higher. Receivables due from reinsurers with lower financial strength ratings are primarily due from captive reinsurers and are backed by collateral arrangements.

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Note F. Future Policy Benefits Reserves

Future policy benefits reserves are associated with the Company's run-off long-term care business, which is included in the Life & Group segment, and relate to policyholders that are currently receiving benefits, including claims that have been incurred but are not yet reported, as well as policyholders that are not yet receiving benefits. Future policy benefits reserves are comprised of the liability for future policyholder benefits (LFPB) which is reflected as Insurance reserves: Future policy benefits on the Condensed Consolidated Balance Sheets.

The determination of Future policy benefits reserves requires management to make estimates and assumptions about expected policyholder experience over the remaining life of the policy. Since policies may be in force for several decades, these assumptions are subject to significant estimation risk. As a result of this variability, the Company’s future policy benefits reserves may be subject to material increases if actual experience develops adversely to the Company’s expectations.

See Note A to the Consolidated Financial Statements within CNAF's Annual Report on Form 10-K for the year ended December 31, 2024 for further information on the long-term care reserving process.

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The following table summarizes balances and changes in the LFPB.


	(In millions)		2025				2024
	Present value of future net premiums
	Balance, January 1		$	3,425			$	3,710
Effect of changes in discount rate	( 7 )				( 125 )
Balance, January 1, at original locked in discount rate	3,418				3,585
Effect of changes in cash flow assumptions (1)	—				—
Effect of actual variances from expected experience (1)	( 1 )				( 29 )
Adjusted balance, January 1	3,417				3,556
Interest accrual	88				92
Net premiums: earned during period	( 203 )				( 212 )
Balance, end of period at original locked in discount rate	3,302				3,436
Effect of changes in discount rate	50				11
Balance, June 30	$	3,352			$	3,447

	Present value of future benefits & expenses
	Balance, January 1		$	16,583			$	17,669
Effect of changes in discount rate	440				( 578 )
Balance, January 1, at original locked in discount rate	17,023				17,091
Effect of changes in cash flow assumptions (1)	—				—
Effect of actual variances from expected experience (1)	22				11
Adjusted balance, January 1	17,045				17,102
Interest accrual	458				461
Benefit & expense payments	( 574 )				( 592 )
Balance, end of period at original locked in discount rate	16,929				16,971
Effect of changes in discount rate	( 248 )				( 313 )
Balance, June 30	$	16,681			$	16,658




	Net LFPB		$	13,329			$	13,211

(1) As of June 30, 2025 and 2024 the re-measurement gain (loss) of $( 23 ) million and $( 40 ) million presented parenthetically on the Condensed Consolidated Statement of Operations is comprised of the effect of changes in cash flow assumptions and the effect of actual variances from expected experience.

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The following table presents earned premiums and interest accretion associated with the Company’s long-term care business recognized on the Condensed Consolidated Statement of Operations.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Earned premiums	$	106	$	109	$	212	$	219
Interest accretion	185		185		370		369

The following table presents undiscounted expected future benefit and expense payments, and undiscounted expected future gross premiums.


	As of June 30
(In millions)	2025		2024
Expected future benefit and expense payments	$	31,141	$	32,212
Expected future gross premiums	4,971		5,149

Discounted expected future gross premiums at the upper-medium grade fixed income instrument yield discount rate were $ 3,491 million and $ 3,546 million as of June 30, 2025 and 2024.

The weighted average effective duration of the LFPB calculated using the original locked in discount rate was 11 years as of June 30, 2025 and 2024.

The weighted average interest rates in the table below are calculated based on the rate used to discount all future cash flows.


	As of June 30				As of December 31
	2025		2024		2024
Original locked in discount rate	5.18	%	5.21	%	5.20	%
Upper-medium grade fixed income instrument discount rate	5.39		5.43		5.51

For the three and six months ended June 30, 2025, immediate charges to net income resulting from adverse development in certain cohorts where the Net Premium Ratio (NPR) exceeded 100% were $ 14 million and $ 28 million. For the three and six months ended June 30, 2024, immediate charges to net income resulting from adverse development in certain cohorts where the NPR exceeded 100% were $ 24 million and $ 44 million.

For the three and six months ended June 30, 2025, the portion of losses recognized in a prior period due to NPR exceeding 100% for certain cohorts which, due to favorable development, was reversed through net income were $ 5 million and $ 11 million. For the three and six months ended June 30, 2024, the portion of losses recognized in a prior period due to NPR exceeding 100% for certain cohorts which, due to favorable development, was reversed through net income were $ 6 million and $ 8 million.

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Note G . Legal Proceedings, Contingencies and Guarantees

The Company is a party to various claims and litigation incidental to its business, which, based on the facts and circumstances currently known, are not material to the Company's results of operations or financial position.

Guarantees

The Company has provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities issued by a previously owned subsidiary. As of June 30, 2025, the potential amount of future payments the Company could be required to pay under these guarantees was approximately $ 1.4 billion, which will be paid over the lifetime of the annuitants. The Company does not believe any payment is likely under these guarantees, as the Company is the beneficiary of a trust that must be maintained at a level that approximates the discounted reserves for these annuities.

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Note H. Benefit Plans

The components of net periodic pension cost (benefit) are presented in the following table.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Net periodic pension cost (benefit)
Interest cost on projected benefit obligation	$	9	$	22	$	18	$	44
Expected return on plan assets	( 13 )		( 29 )		( 27 )		( 58 )
Amortization of net actuarial loss (gain)	2		7		4		14

Total net periodic pension cost (benefit)	$	( 2 )	$	—	$	( 5 )	$	—

The following table indicates the line items in which the non-service cost (benefit) is presented in the Condensed Consolidated Statements of Operations.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Non-Service Cost (Benefit):
Insurance claims and policyholder's benefits	$	—	$	—	$	( 1 )	$	—
Other operating expenses	( 2 )		—		( 4 )		—
Total net periodic pension cost (benefit)	$	( 2 )	$	—	$	( 5 )	$	—

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Note I. Accumulated Other Comprehensive Income (Loss) by Component

The tables below display the changes in Accumulated other comprehensive income (loss) by component.


(In millions)	Net unrealized gains (losses) on investments with an allowance for credit losses		Net unrealized gains (losses) on other investments		Pension and postretirement benefits		Cumulative impact of changes in discount rates used to measure long duration contracts		Cumulative foreign currency translation adjustment		Total


Balance as of April 1, 2025	$	( 16 )	$	( 1,593 )	$	( 189 )	$	239	$	( 226 )	$	( 1,785 )
Other comprehensive income (loss) before reclassifications	( 5 )		42		—		( 3 )		128		162
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $ 2 , $ 10 , $ 1 , $ — , $ — and $ 13	( 6 )		( 30 )		( 1 )		—		—		( 37 )
Other comprehensive income (loss) net of tax (expense) benefit of $ — , $( 22 ), $( 1 ), $ — , $ — and $( 23 )	1		72		1		( 3 )		128		199
Balance as of June 30, 2025	$	( 15 )	$	( 1,521 )	$	( 188 )	$	236	$	( 98 )	$	( 1,586 )


(In millions)	Net unrealized gains (losses) on investments with an allowance for credit losses		Net unrealized gains (losses) on other investments		Pension and postretirement benefits		Cumulative impact of changes in discount rates used to measure long duration contracts		Cumulative foreign currency translation adjustment		Total


Balance as of April 1, 2024	$	( 10 )	$	( 1,830 )	$	( 519 )	$	( 18 )	$	( 195 )	$	( 2,572 )
Other comprehensive income (loss) before reclassifications	( 4 )		( 250 )		—		273		( 10 )		9
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $ 1 , $ 1 , $ 1 , $ — , $ — and $ 3	( 4 )		( 6 )		( 6 )		—		—		( 16 )
Other comprehensive income (loss) net of tax (expense) benefit of $ — , $ 66 , $( 1 ), $( 72 ), $ — and $( 7 )	—		( 244 )		6		273		( 10 )		25
Balance as of June 30, 2024	$	( 10 )	$	( 2,074 )	$	( 513 )	$	255	$	( 205 )	$	( 2,547 )

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(In millions)	Net unrealized gains (losses) on investments with an allowance for credit losses		Net unrealized gains (losses) on other investments		Pension and postretirement benefits		Cumulative impact of changes in discount rates used to measure long duration contracts		Cumulative foreign currency translation adjustment		Total


Balance as of January 1, 2025	$	( 13 )	$	( 1,876 )	$	( 191 )	$	353	$	( 264 )	$	( 1,991 )
Other comprehensive income (loss) before reclassifications	( 10 )		319		—		( 117 )		166		358
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $ 2 , $ 11 , $ 1 , $ — , $ — and $ 14	( 8 )		( 36 )		( 3 )		—		—		( 47 )
Other comprehensive income (loss) net of tax (expense) benefit of $ 1 , $( 96 ), $( 1 ), $ 31 , $ — and $( 65 )	( 2 )		355		3		( 117 )		166		405
Balance as of June 30, 2025	$	( 15 )	$	( 1,521 )	$	( 188 )	$	236	$	( 98 )	$	( 1,586 )


(In millions)	Net unrealized gains (losses) on investments with an allowance for credit losses		Net unrealized gains (losses) on other investments		Pension and postretirement benefits		Cumulative impact of changes in discount rates used to measure long duration contracts		Cumulative foreign currency translation adjustment		Total
Balance as of January 1, 2024	$	( 12 )	$	( 1,613 )	$	( 525 )	$	( 359 )	$	( 163 )	$	( 2,672 )
Other comprehensive income (loss) before reclassifications	( 5 )		( 489 )		—		614		( 42 )		78
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $ 2 , $ 7 , $ 2 , $—, $ — and $ 11	( 7 )		( 28 )		( 12 )		—		—		( 47 )
Other comprehensive income (loss) net of tax (expense) benefit of $( 1 ), $ 124 , $( 2 ), $( 163 ), $ — and $( 42 )	2		( 461 )		12		614		( 42 )		125
Balance as of June 30, 2024	$	( 10 )	$	( 2,074 )	$	( 513 )	$	255	$	( 205 )	$	( 2,547 )

Amounts reclassified from Accumulated other comprehensive income (loss) shown above are reported in Net income (loss) as follows:


Component of AOCI						Condensed Consolidated Statements of Operations Line Item Affected by Reclassifications
Net unrealized gains (losses) on investments with an allowance for credit losses and Net unrealized gains (losses) on other investments						Net investment gains (losses)
Pension and postretirement benefits						Other operating expenses and Insurance claims and policyholders' benefits

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Note J. Business Segments

The Company's property and casualty commercial insurance operations are managed and reported in three business segments: Specialty, Commercial and International. These three segments are collectively referred to as Property & Casualty Operations. The Company's operations outside of Property & Casualty Operations are managed and reported in two segments: Life & Group and Corporate & Other.

The accounting policies of the segments are the same as those described in Note A to the Consolidated Financial Statements within CNAF's Annual Report on Form 10-K for the year ended December 31, 2024. The Company manages most of its assets on a legal entity basis, while segment operations are generally conducted across legal entities. As such, only Insurance and Reinsurance receivables, Insurance reserves, Deferred acquisition costs, Goodwill and Deferred non-insurance warranty acquisition expense and revenue are readily identifiable for individual segments. Distinct investment portfolios are not maintained for every individual segment; accordingly, allocation of assets to each segment is not performed. Therefore, a significant portion of Net investment income is allocated primarily based on each segment's net carried insurance reserves, as adjusted. All significant intersegment income and expense have been eliminated. Income taxes have been allocated on the basis of the taxable income of the segments.

In the following tables, certain financial measures are presented to provide information used by management to monitor the Company's operating performance. Management utilizes these financial measures to monitor the Company's insurance operations and investment portfolio.

The performance of the Company's insurance operations is monitored by management through core income (loss). The Company's Chief Operating Decision Maker (CODM) is the Chief Executive Officer. For all segments, the CODM uses a multi-year trend of core income (loss) to assess the segments' operating performance and make decisions regarding the allocation of resources to each segment.

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 the Company's primary operations. The calculation of core income (loss) excludes gains or losses resulting from pension settlement transactions as they result from decisions regarding the Company's defined benefit pension plans which are unrelated to the Company's primary operations.

The Company's investment portfolio is monitored by management through analysis of various factors including unrealized gains and losses on securities, portfolio duration and exposure to market and credit risk.

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The Company's results of operations and selected balance sheet items by segment are presented in the following tables.


Three months ended June 30, 2025	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total

Operating revenues
Net earned premiums	$	862	$	1,402	$	324	$	106	$	—	$	—	$	2,694
Net investment income	170		206		38		235		13		—		662
Non-insurance warranty revenue	398		—		—		—		—		—		398
Other revenues	( 1 )		10		—		—		3		( 3 )		9
Total operating revenues	1,429		1,618		362		341		16		( 3 )		3,763
Claims, benefits and expenses
Net incurred claims and benefits	519		940		195		313		108		—		2,075
Policyholders’ dividends	3		7		—		—		—		—		10
Amortization of deferred acquisition costs	195		211		63		—		—		—		469
Non-insurance warranty expense	384		—		—		—		—		—		384
Insurance related administrative expenses	92		170		43		31		1		—		337
Interest expense	—		—		—		—		31		—		31
Other expenses (1)	10		15		( 10 )		1		18		( 3 )		31
Total claims, benefits and expenses	1,203		1,343		291		345		158		( 3 )		3,337



Income tax (expense) benefit on core income (loss)	( 49 )		( 57 )		( 18 )		5		28		—		( 91 )

Core income (loss)	$	177	$	218	$	53	$	1	$	( 114 )	$	—	$	335
Net investment gains (losses)													( 46 )
Income tax (expense) benefit on net investment gains (losses)													10
Net investment gains (losses), after tax													( 36 )



Net income (loss)													$	299

(1) Other expenses for the Company's property and casualty insurance segments reflects expenses not directly related to the Company's insurance operations, including certain expenses related to the Company's non-insurance warranty business within Specialty, claims services offerings within Commercial and foreign currency transaction gains and losses within International. Other expenses for the Corporate & Other segment reflects certain corporate expenses not attributable to the Company's ongoing property and casualty insurance operations.

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Three months ended June 30, 2024	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total

Operating revenues
Net earned premiums	$	831	$	1,247	$	311	$	109	$	—	$	—	$	2,498
Net investment income	154		175		32		239		18		—		618
Non-insurance warranty revenue	404		—		—		—		—		—		404
Other revenues	( 1 )		10		—		—		3		( 3 )		9
Total operating revenues	1,388		1,432		343		348		21		( 3 )		3,529
Claims, benefits and expenses
Net incurred claims and benefits	492		846		184		325		27		—		1,874
Policyholders’ dividends	3		5		—		—		—		—		8
Amortization of deferred acquisition costs	180		199		56		—		—		—		435
Non-insurance warranty expense	388		—		—		—		—		—		388
Insurance related administrative expenses	96		158		46		29		—		—		329
Interest expense	( 1 )		—		—		—		35		—		34
Other expenses (1)	14		13		1		1		23		( 3 )		49
Total claims, benefits and expenses	1,172		1,221		287		355		85		( 3 )		3,117



Income tax (expense) benefit on core income (loss)	( 47 )		( 44 )		( 12 )		6		11		—		( 86 )

Core income (loss)	$	169	$	167	$	44	$	( 1 )	$	( 53 )	$	—	$	326
Net investment gains (losses)													( 10 )
Income tax (expense) benefit on net investment gains (losses)													1
Net investment gains (losses), after tax													( 9 )



Net income (loss)													$	317

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Six months ended June 30, 2025	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total

Operating revenues
Net earned premiums	$	1,692	$	2,782	$	634	$	212	$	—	$	—	$	5,320
Net investment income	321		383		72		461		29		—		1,266
Non-insurance warranty revenue	795		—		—		—		—		—		795
Other revenues	—		18		—		—		6		( 6 )		18
Total operating revenues	2,808		3,183		706		673		35		( 6 )		7,399
Claims, benefits and expenses
Net incurred claims and benefits	1,028		1,947		387		613		117		—		4,092
Policyholders’ dividends	5		15		—		—		—		—		20
Amortization of deferred acquisition costs	384		430		126		—		—		—		940
Non-insurance warranty expense	769		—		—		—		—		—		769
Insurance related administrative expenses	180		333		83		61		1		—		658
Interest expense	—		—		—		—		63		—		63
Other expenses (1)	25		25		( 11 )		1		39		( 6 )		73
Total claims, benefits and expenses	2,391		2,750		585		675		220		( 6 )		6,615



Income tax (expense) benefit on core income (loss)	( 90 )		( 91 )		( 31 )		9		35		—		( 168 )

Core income (loss)	$	327	$	342	$	90	$	7	$	( 150 )	$	—	$	616
Net investment gains (losses)													( 55 )
Income tax (expense) benefit on net investment gains (losses)													12
Net investment gains (losses), after tax													( 43 )



Net income (loss)													$	573

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June 30, 2025	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Reinsurance receivables	$	1,777	$	1,740	$	550	$	79	$	2,293	$	—	$	6,439
Insurance receivables	1,028		2,556		503		1		1		—		4,089
Deferred acquisition costs	447		420		154		—		—		—		1,021
Goodwill	117		—		31		—		—		—		148
Deferred non-insurance warranty acquisition expense	3,441		—		—		—		—		—		3,441
Insurance reserves
Claim and claim adjustment expenses	7,704		11,888		3,256		611		2,744		—		26,203
Unearned premiums	3,283		3,635		871		101		—		—		7,890
Future policy benefits	—		—		—		13,329		—		—		13,329
Deferred non-insurance warranty revenue	4,421		—		—		—		—		—		4,421

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Six months ended June 30, 2024	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total

Operating revenues
Net earned premiums	$	1,645	$	2,449	$	626	$	219	$	—	$	—	$	4,939
Net investment income	304		351		63		470		39		—		1,227
Non-insurance warranty revenue	811		—		—		—		—		—		811
Other revenues	—		18		—		—		6		( 6 )		18
Total operating revenues	2,760		2,818		689		689		45		( 6 )		6,995
Claims, benefits and expenses
Net incurred claims and benefits	969		1,674		373		637		19		—		3,672
Policyholders’ dividends	5		12		—		—		—		—		17
Amortization of deferred acquisition costs	358		399		122		—		—		—		879
Non-insurance warranty expense	782		—		—		—		—		—		782
Insurance related administrative expenses	177		296		85		58		—		—		616
Interest expense	—		—		—		—		69		—		69
Other expenses (1)	28		25		3		1		48		( 6 )		99
Total claims, benefits and expenses	2,319		2,406		583		696		136		( 6 )		6,134


Income tax (expense) benefit on core income (loss)	( 95 )		( 87 )		( 25 )		11		16		—		( 180 )

Core income (loss)	$	346	$	325	$	81	$	4	$	( 75 )	$	—	$	681
Net investment gains (losses)													( 32 )
Income tax (expense) benefit on net investment gains (losses)													6
Net investment gains (losses), after tax													( 26 )
Net income (loss)													$	655

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December 31, 2024	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Reinsurance receivables	$	1,405	$	1,710	$	539	$	82	$	2,336	$	—	$	6,072
Insurance receivables	1,062		2,219		410		4		2		—		3,697
Deferred acquisition costs	427		405		127		—		—		—		959
Goodwill	117		—		28		—		—		—		145
Deferred non-insurance warranty acquisition expense	3,525		—		—		—		—		—		3,525
Insurance reserves
Claim and claim adjustment expenses	7,426		11,336		2,920		622		2,672		—		24,976
Unearned premiums	3,275		3,252		727		92		—		—		7,346
Future policy benefits	—		—		—		13,158		—		—		13,158
Deferred non-insurance warranty revenue	4,530		—		—		—		—		—		4,530

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The following table presents further detail of significant segment expenses included within Net incurred claims and benefits for the Property & Casualty segments.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Specialty
Non-catastrophe net incurred claim and claim adjustment expenses related to current year	$	519	$	495	$	1,018	$	977
Catastrophe losses	—		—		—		—
(Favorable) unfavorable development (1)	—		( 3 )		10		( 8 )
Commercial
Non-catastrophe net incurred claim and claim adjustment expenses related to current year	$	886	$	775	$	1,754	$	1,521
Catastrophe losses	57		76		143		158
(Favorable) unfavorable development (1)	( 4 )		( 6 )		47		( 8 )
International
Non-catastrophe net incurred claim and claim adjustment expenses related to current year	$	190	$	181	$	371	$	364
Catastrophe losses	5		6		16		12
(Favorable) unfavorable development (1)	—		( 3 )		—		( 3 )

(1) (Favorable) unfavorable development does not include the effects of interest accretion and change in allowance for uncollectible reinsurance.

The following table presents operating revenues by line of business for each reportable segment.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Specialty
Management & Professional Liability	$	778	$	733	$	1,524	$	1,462
Surety	205		196		393		378
Warranty & Alternative Risks	446		459		891		920
Specialty revenues	1,429		1,388		2,808		2,760
Commercial
Middle Market	481		427		947		859
Construction	517		483		1,027		938
Small Business	161		157		317		311
Other Commercial	459		365		892		710
Commercial revenues	1,618		1,432		3,183		2,818
International
Canada	104		99		198		197
Europe	156		147		300		290
Hardy	102		97		208		202
International revenues	362		343		706		689
Life & Group revenues	341		348		673		689
Corporate & Other revenues	16		21		35		45
Eliminations	( 3 )		( 3 )		( 6 )		( 6 )
Total operating revenues	3,763		3,529		7,399		6,995
Net investment gains (losses)	( 46 )		( 10 )		( 55 )		( 32 )
Total revenues	$	3,717	$	3,519	$	7,344	$	6,963

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Note K. Non-Insurance Revenues from Contracts with Customers

The Company had a deferred non-insurance warranty revenue balance of $ 4.4 billion and $ 4.5 billion reported under Liabilities as of June 30, 2025 and December 31, 2024. For the three and six months ended June 30, 2025, the Company recognized $ 0.3 billion and $ 0.6 billion of revenues that were included in the deferred revenue balance as of January 1, 2025. For the three and six months ended June 30, 2024, the Company recognized $ 0.4 billion and $ 0.7 billion of revenues that were included in the deferred revenue balance as of January 1, 2024. For the three and six months ended June 30, 2025 and 2024, non-insurance warranty revenue recognized from performance obligations related to prior periods due to a change in estimate was not material. The Company expects to recognize approximately $ 0.8 billion of the deferred revenue in the remainder of 2025, $ 1.1 billion in 2026, $ 0.9 billion in 2027 and $ 1.6 billion thereafter.

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Item 2. Management's Discussion and Analysis (MD&A) of Financial Conditions 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, 2024.

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 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 catastrophe losses 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

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with existing customers. Gross written premiums, excluding third-party captives, excludes business which is ceded to third-party captives, including business related to large warranty programs.

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 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 catastrophe losses, 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:


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		—		31

Core income	$	177	$	218	$	53	$	448

Less:
Net investment income	170		206		38		414
Non-insurance warranty revenue (expense)	14		—		—		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
Effect of catastrophe losses	—		57		5		62
Effect of unfavorable development-related items	—		1		—		1
Underlying underwriting gain	$	53	$	132	$	28	$	213


Three months ended June 30, 2024	Specialty		Commercial		International		Property & Casualty
(In millions)
Net income	$	164	$	160	$	45	$	369
Net investment losses (gains), after tax	5		7		(1)		11

Core income	$	169	$	167	$	44	$	380

Less:
Net investment income	154		175		32		361
Non-insurance warranty revenue (expense)	16		—		—		16
Other revenue (expense), including interest expense	(14)		(3)		(1)		(18)
Income tax expense on core income	(47)		(44)		(12)		(103)
Underwriting gain	60		39		25		124
Effect of catastrophe losses	—		76		6		82
Effect of favorable development-related items	(3)		—		(3)		(6)
Underlying underwriting gain	$	57	$	115	$	28	$	200

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


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		—		—		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
Effect of catastrophe losses	—		143		16		159
Effect of unfavorable development-related items	10		53		—		63
Underlying underwriting gain	$	105	$	253	$	54	$	412


Six months ended June 30, 2024	Specialty		Commercial		International		Property & Casualty
(In millions)
Net income	$	331	$	304	$	82	$	717
Net investment losses (gains), after tax	15		21		(1)		35

Core income	$	346	$	325	$	81	$	752

Less:
Net investment income	304		351		63		718
Non-insurance warranty revenue (expense)	29		—		—		29
Other revenue (expense), including interest expense	(28)		(7)		(3)		(38)
Income tax expense on core income	(95)		(87)		(25)		(207)
Underwriting gain	136		68		46		250
Effect of catastrophe losses	—		158		12		170
Effect of favorable development-related items	(8)		—		(3)		(11)
Underlying underwriting gain	$	128	$	226	$	55	$	409

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


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Net (loss) income	$	(4)	$	1	$	(5)	$	14
Net investment losses (gains), after tax	5		(2)		12		(10)

Core income (loss)	$	1	$	(1)	$	7	$	4

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


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Net loss	$	(114)	$	(53)	$	(150)	$	(76)
Net investment losses, after tax	—		—		—		1

Core loss	$	(114)	$	(53)	$	(150)	$	(75)

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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 the amount of revenues and expenses reported during the period. Actual results may differ from those estimates.

Our Condensed 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 Condensed 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 set forth below are considered by us to be critical to an understanding of our Condensed Consolidated Financial Statements as their application places the most significant demands on our judgment:

• Insurance Reserves

• Long-Term Care Reserves

• Reinsurance and Insurance Receivables

• Valuation of Investments and Impairment of Securities

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. See the Critical Accounting Estimates section of our Management's Discussion and Analysis of Financial Condition and Results of Operations included under Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024 for further information.

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CATASTROPHES AND RELATED REINSURANCE

Various events can cause catastrophe losses. These events can be natural or man-made, including hurricanes, tornadoes, windstorms, earthquakes, hail, severe winter weather, droughts, fires, floods, riots, strikes, civil unrest, cyber-attacks, pandemics and acts of terrorism that produce unusually large aggregate losses.

Catastrophes are an inherent risk of the property and casualty insurance business and have contributed to material period-to-period fluctuations in our results of operations and/or equity. We use various analyses and methods, including using one of the industry standard natural catastrophe models, to estimate hurricane and earthquake losses at various return periods and to inform underwriting and reinsurance decisions designed to manage our exposure to catastrophic events. We also generally seek to manage our exposure through the purchase of catastrophe reinsurance and utilize various reinsurance programs to mitigate catastrophe losses, including excess-of-loss occurrence and aggregate treaties covering property and workers’ compensation, a property quota share treaty and the Terrorism Risk Insurance Program Reauthorization Act of 2019 (TRIPRA), as well as individual risk agreements that reinsure from losses from specific classes or lines of business. We regularly review our risk and catastrophe reinsurance coverages and from time to time make changes as we deem appropriate. In the second quarter of 2025, we renewed our excess-of-loss property catastrophe reinsurance as described below:

Group North American Property Treaty

We purchased corporate catastrophe excess-of-loss treaty reinsurance covering our U.S. states and territories and Canadian property exposures underwritten in our North American and European companies. The treaty has a term of June 1, 2025 to June 1, 2026 and provides coverage for the accumulation of covered losses from catastrophe occurrences above our per occurrence retention of $275 million up to $1.4 billion for all losses. Losses stemming from terrorism events are covered unless they are due to a nuclear, biological or chemical attack. All layers of the treaty provide for one full reinstatement.

Group Workers' Compensation Treaty

We also purchased corporate workers' compensation catastrophe excess-of-loss treaty reinsurance for the period January 1, 2025 to January 1, 2026 providing $275 million of coverage for the accumulation of covered losses related to natural catastrophes above our per occurrence retention of $25 million. The treaty also provides $775 million of coverage for the accumulation of covered losses related to terrorism events above our per occurrence retention of $25 million. Of the $775 million in terrorism coverage, $200 million is provided for nuclear, biological, chemical and radiation events. All layers of the treaty provide for one full reinstatement.

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CONSOLIDATED OPERATIONS

Results of Operations

The following table includes the consolidated results of our operations including our financial measure, core income (loss). For more detailed components of our business operations and a discussion of the core income (loss) financial measure, see the Segment Results section within this MD&A. For further discussion of Net investment income and Net investment gains or losses, see the Investments section of this MD&A.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Operating Revenues
Net earned premiums	$	2,694	$	2,498	$	5,320	$	4,939
Net investment income	662		618		1,266		1,227
Non-insurance warranty revenue	398		404		795		811
Other revenues	9		9		18		18
Total operating revenues	3,763		3,529		7,399		6,995
Claims, Benefits and Expenses
Net incurred claims and benefits (re-measurement loss of $15, $25, $23 and $40)	2,075		1,874		4,092		3,672
Policyholders' dividends	10		8		20		17
Amortization of deferred acquisition costs	469		435		940		879
Non-insurance warranty expense	384		388		769		782
Insurance related administrative expenses	337		329		658		616
Interest expense	31		34		63		69
Other expenses	31		49		73		99
Total claims, benefits and expenses	3,337		3,117		6,615		6,134


Income tax expense on core income	(91)		(86)		(168)		(180)

Core income	335		326		616		681
Net investment losses	(46)		(10)		(55)		(32)
Income tax benefit on net investment losses	10		1		12		6
Net investment losses, after tax	(36)		(9)		(43)		(26)



Net income	$	299	$	317	$	573	$	655

Three Month Comparison

Core income increased $9 million for the three months ended June 30, 2025 as compared with the same period in 2024. Core income for our Property & Casualty Operations increased $68 million primarily driven by higher net investment income and improved current accident year underwriting results. Core results for our Life & Group segment improved $2 million, while core loss for our Corporate & Other segment increased $61 million.

Catastrophe losses were $62 million and $82 million for the three months ended June 30, 2025 and 2024. Unfavorable net prior year loss reserve development of $108 million and $23 million was recorded for the three months ended June 30, 2025 and 2024 related to our Specialty, Commercial, International and Corporate & Other segments. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.

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Six Month Comparison

Core income decreased $65 million for the six months ended June 30, 2025 as compared with the same period in 2024. Core income for our Property & Casualty Operations increased $7 million primarily driven by higher net investment income and improved current accident year underwriting results partially offset by unfavorable net prior year loss reserve development compared to favorable net prior year loss reserve development in the prior year period. Core income for our Life & Group segment increased $3 million, while core loss for our Corporate & Other segment increased $75 million.

Catastrophe losses were $159 million and $170 million for the six months ended June 30, 2025 and 2024. Unfavorable net prior year loss reserve development of $191 million and $16 million was recorded for the six months ended June 30, 2025 and 2024 related to our Specialty, Commercial, International and Corporate & Other segments. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.

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SEGMENT RESULTS

The following discusses the results of operations for our business segments. Our property and casualty commercial insurance operations are managed and reported in three business segments: Specialty, Commercial and International, which we refer to collectively as Property & Casualty Operations. Our operations outside of Property & Casualty Operations are managed and reported in two segments: Life & Group and Corporate & Other.

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Specialty

The following table details the results of operations for Specialty and provides the components to reconcile the combined ratio and loss ratio to the underlying combined ratio and underlying loss ratio.


Periods ended June 30	Three Months						Six Months
(In millions, except ratios, rate, renewal premium change and retention)	2025			2024			2025			2024
Gross written premiums	$	1,692		$	1,728		$	3,364		$	3,410
Gross written premiums excluding third-party captives	1,013			984			1,943			1,864
Net written premiums	892			857			1,734			1,649
Net earned premiums	862			831			1,692			1,645
Underwriting gain	53			60			95			136
Net investment income	170			154			321			304
Core income	177			169			327			346

Other performance metrics:
Loss ratio	60.1		%	59.2		%	60.7		%	58.9		%
Expense ratio	33.2			33.2			33.3			32.5
Dividend ratio	0.3			0.3			0.3			0.3
Combined ratio	93.6		%	92.7		%	94.3		%	91.7		%
Less: Effect of catastrophe impacts	—			—			—			—
Less: Effect of (favorable) unfavorable development-related items	—			(0.4)			0.6			(0.5)
Underlying combined ratio	93.6		%	93.1		%	93.7		%	92.2		%
Underlying loss ratio	60.1		%	59.6		%	60.1		%	59.4		%

Rate	3		%	—		%	3		%	1		%
Renewal premium change	4			1			4			2
Retention	86			90			88			89
New business	$	122		$	118		$	234		$	212

Three Month Comparison

Gross written premiums, excluding third-party captives, for Specialty increased $29 million for the three months ended June 30, 2025 as compared with the same period in 2024 driven by favorable renewal premium change, inclusive of rate, partially offset by lower retention. Net written premiums for Specialty increased $35 million for the three months ended June 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums.

Core income increased $8 million for the three months ended June 30, 2025 as compared with the same period in 2024 primarily due to higher net investment income partially offset by lower underlying underwriting results and no net prior year loss reserve development in the current year period compared with favorable net prior year loss reserve development in the prior year period.

The combined ratio of 93.6% increased 0.9 points for the three months ended June 30, 2025 as compared with the same period in 2024 due to a 0.9 point increase in the loss ratio. The increase in the loss ratio was due to an increase in the underlying loss ratio and no net prior year loss reserve development recorded in the current year period compared with $3 million of favorable net prior year loss reserve development in the same period in 2024. The expense ratio was consistent with the same period in 2024. There were no catastrophe losses for the three months ended June 30, 2025 and 2024.

Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I Item 1.

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Six Month Comparison

Gross written premiums, excluding third-party captives, for Specialty increased $79 million for the six months ended June 30, 2025 as compared with the same period in 2024 driven by favorable renewal premium change, inclusive of rate, and higher new business partially offset by lower retention. Net written premiums for Specialty increased $85 million for the six months ended June 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums.

Core income decreased $19 million for the six months ended June 30, 2025 as compared with the same period in 2024 primarily due to lower underlying underwriting results and unfavorable net prior year loss reserve development in the current year period compared with favorable net prior year loss reserve development in the prior year period, partially offset by higher net investment income.

The combined ratio of 94.3% increased 2.6 points for the six months ended June 30, 2025 as compared with the same period in 2024 due to a 1.8 point increase in the loss ratio and a 0.8 point increase in the expense ratio. The increase in the loss ratio was due to unfavorable net prior year loss reserve development recorded in the current year period and an increase in the underlying loss ratio primarily driven by continued pricing pressure in management liability lines. The increase in the expense ratio was driven by higher employee related and acquisition costs partially offset by higher net earned premiums. There were no catastrophe losses for the six months ended June 30, 2025 and 2024.

Unfavorable net prior year loss reserve development of $10 million was recorded for the six months ended June 30, 2025 as compared with $8 million of favorable net prior year loss reserve development recorded for the six months ended June 30, 2024. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I Item 1.

The following table summarizes the gross and net carried reserves for Specialty.


(In millions)	June 30, 2025		December 31, 2024
Gross case reserves	$	2,080	$	2,023
Gross IBNR reserves	5,624		5,403
Total gross carried claim and claim adjustment expense reserves	$	7,704	$	7,426
Net case reserves	$	1,745	$	1,697
Net IBNR reserves	4,328		4,282
Total net carried claim and claim adjustment expense reserves	$	6,073	$	5,979

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Commercial

The following table details the results of operations for Commercial and provides the components to reconcile the combined ratio and loss ratio to the underlying combined ratio and underlying loss ratio.


Periods ended June 30	Three Months						Six Months
(In millions, except ratios, rate, renewal premium change and retention)	2025			2024			2025			2024
Gross written premiums	$	2,065		$	1,927		$	3,918		$	3,613
Gross written premiums excluding third-party captives	1,903			1,802			3,742			3,484
Net written premiums	1,563			1,458			3,061			2,796
Net earned premiums	1,402			1,247			2,782			2,449
Underwriting gain	74			39			57			68
Net investment income	206			175			383			351
Core income	218			167			342			325

Other performance metrics:
Loss ratio	67.1		%	68.0		%	70.0		%	68.4		%
Expense ratio	27.2			28.5			27.4			28.4
Dividend ratio	0.5			0.5			0.5			0.5
Combined ratio	94.8		%	97.0		%	97.9		%	97.3		%
Less: Effect of catastrophe impacts	4.2			6.1			5.2			6.4
Less: Effect of (favorable) unfavorable development-related items	—			(0.1)			1.9			—
Underlying combined ratio	90.6		%	91.0		%	90.8		%	90.9		%
Underlying loss ratio	62.9		%	62.0		%	62.9		%	62.0		%

Rate	5		%	7		%	6		%	7		%
Renewal premium change	6			7			7			8
Retention	81			84			83			84
New business	$	420		$	405		$	790		$	772

Three Month Comparison

Gross written premiums for Commercial increased $138 million for the three months ended June 30, 2025 as compared with the same period in 2024 driven by favorable renewal premium change, inclusive of rate, partially offset by lower retention. Net written premiums for Commercial increased $105 million for the three months ended June 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums.

Core income increased $51 million for the three months ended June 30, 2025 as compared with the same period in 2024, primarily driven by improved current accident year underwriting results and higher net investment income.

The combined ratio of 94.8% improved 2.2 points for the three months ended June 30, 2025 as compared with the same period in 2024 due to a 1.3 point improvement in the expense ratio and a 0.9 point improvement in the loss ratio. The improvement in the expense ratio was primarily driven by higher net earned premiums and a lower acquisition ratio. The improvement in the loss ratio was primarily due to lower catastrophes losses partially offset by an increase in the underlying loss ratio driven by the continuation of elevated loss cost trends in commercial auto. Catastrophe losses were $57 million, or 4.2 points of the loss ratio, for the three months ended June 30, 2025, as compared with $76 million, or 6.1 points of the loss ratio, for the three months ended June 30, 2024.

Favorable net prior year loss reserve development of $4 million and $6 million was recorded for the three months ended June 30, 2025 and 2024. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.

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Six Month Comparison

Gross written premiums for Commercial increased $305 million for the six months ended June 30, 2025 as compared with the same period in 2024 driven by favorable renewal premium change, inclusive of rate, partially offset by lower retention. Net written premiums for Commercial increased $265 million for the six months ended June 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums.

Core income increased $17 million for the six months ended June 30, 2025 as compared with the same period in 2024, primarily driven by improved current accident year underwriting results and higher net investment income partially offset by unfavorable net prior year loss reserve development.

The combined ratio of 97.9% increased 0.6 points for the six months ended June 30, 2025 as compared with the same period in 2024 due to a 1.6 point increase in the loss ratio partially offset by a 1.0 point improvement in the expense ratio. The increase in the loss ratio was due to unfavorable net prior year loss reserve development and an increase in the underlying loss ratio driven by the continuation of elevated loss cost trends in commercial auto, partially offset by lower catastrophe losses. Catastrophe losses were $143 million, or 5.2 points of the loss ratio, for the six months ended June 30, 2025, as compared with $158 million, or 6.4 points of the loss ratio, for the six months ended June 30, 2024. The improvement in the expense ratio was driven by higher net earned premiums.

Unfavorable net prior year loss reserve development of $47 million was recorded for the six months ended June 30, 2025 as compared with $8 million of favorable net prior year loss reserve development recorded for the six months ended June 30, 2024. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.

The following table summarizes the gross and net carried reserves for Commercial.



(In millions)	June 30, 2025		December 31, 2024
Gross case reserves	$	3,882	$	3,690
Gross IBNR reserves	8,006		7,646
Total gross carried claim and claim adjustment expense reserves	$	11,888	$	11,336
Net case reserves	$	3,300	$	3,135
Net IBNR reserves	7,098		6,804
Total net carried claim and claim adjustment expense reserves	$	10,398	$	9,939

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International

The following table details the results of operations for International and provides the components to reconcile the combined ratio and loss ratio to the underlying combined ratio and underlying loss ratio.


Periods ended June 30	Three Months						Six Months
(In millions, except ratios, rate, renewal premium change and retention)	2025			2024			2025			2024
Gross written premiums	$	437		$	417		$	810		$	791
Net written premiums	391			359			657			619
Net earned premiums	324			311			634			626
Underwriting gain	23			25			38			46
Net investment income	38			32			72			63
Core income	53			44			90			81

Other performance metrics:
Loss ratio	59.9		%	59.1		%	61.0		%	59.6		%
Expense ratio	32.9			32.8			33.0			33.0
Combined ratio	92.8		%	91.9		%	94.0		%	92.6		%
Less: Effect of catastrophe impacts	1.4			2.0			2.5			2.0
Less: Effect of (favorable) unfavorable development-related items	—			(1.0)			—			(0.5)
Underlying combined ratio	91.4		%	90.9		%	91.5		%	91.1		%
Underlying loss ratio	58.5		%	58.1		%	58.5		%	58.1		%

Rate	(4)		%	0		%	(3)		%	0		%
Renewal premium change	(1)			2			—			3
Retention	86			80			85			81
New business	$	103		$	72		$	186		$	140

Three Month Comparison

Gross written premiums for International increased $20 million for the three months ended June 30, 2025 as compared with the same period in 2024. Excluding the effect of foreign currency exchange rates, gross written premiums increased $14 million driven by higher new business and retention partially offset by lower rate. Net written premiums for International increased $32 million for the three months ended June 30, 2025 as compared with the same period in 2024. Excluding the effect of foreign currency exchange rates, net written premiums increased $26 million for the three months ended June 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums in recent quarters.

Core income increased $9 million for the three months ended June 30, 2025 as compared with the same period in 2024 primarily driven by a favorable impact from changes in foreign currency exchange rates and higher net investment income.

The combined ratio of 92.8% increased 0.9 points for the three months ended June 30, 2025 as compared with the same period in 2024 largely due to a 0.8 point increase in the loss ratio. The increase in the loss ratio was primarily driven by no net prior year loss reserve development recorded in the current year period compared with $3 million of favorable net prior year loss reserve development in the same period in 2024 and an increase in the underlying loss ratio, partially offset by lower catastrophe losses. Catastrophe losses were $5 million, or 1.4 points of the loss ratio, for the three months ended June 30, 2025, as compared with $6 million, or 2.0 points of the loss ratio, for the three months ended June 30, 2024. The expense ratio was generally consistent with the same period in 2024.

Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.

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Six Month Comparison

Gross written premiums for International increased $19 million for the six months ended June 30, 2025 as compared with the same period in 2024. Excluding the effect of foreign currency exchange rates, gross written premiums increased $28 million driven by higher new business and retention partially offset by lower rate. Net written premiums for International increased $38 million for the six months ended June 30, 2025 as compared with the same period in 2024. Excluding the effect of foreign currency exchange rates, net written premiums increased $45 million for the six months ended June 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums in recent quarters.

Core income increased $9 million for the six months ended June 30, 2025 as compared with the same period in 2024 primarily driven by a favorable impact from changes in foreign currency exchange rates and higher net investment income.

The combined ratio of 94.0% increased 1.4 points for the six months ended June 30, 2025 as compared with the same period in 2024 due to a 1.4 point increase in the loss ratio. The increase in the loss ratio was primarily driven by higher catastrophe losses and no net prior year loss reserve development recorded in the current year period compared with $3 million of favorable net prior year loss reserve development in the same period in 2024. Catastrophe losses were $16 million, or 2.5 points of the loss ratio, for the six months ended June 30, 2025, as compared with $12 million, or 2.0 points of the loss ratio, for the six months ended June 30, 2024. The expense ratio was consistent with the same period in 2024.

Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.

The following table summarizes the gross and net carried reserves for International.



(In millions)	June 30, 2025		December 31, 2024
Gross case reserves	$	968	$	876
Gross IBNR reserves	2,288		2,044
Total gross carried claim and claim adjustment expense reserves	$	3,256	$	2,920
Net case reserves	$	834	$	741
Net IBNR reserves	1,932		1,675
Total net carried claim and claim adjustment expense reserves	$	2,766	$	2,416

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Life & Group

The following table summarizes the results of operations for Life & Group.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Net earned premiums	$	106	$	109	$	212	$	219
Claims, benefits and expenses	345		355		675		696

Net investment income	235		239		461		470


Core income (loss)	1		(1)		7		4

Three Month Comparison

Results for the three months ended June 30, 2025 was generally consistent with the same period in 2024, reflecting favorable persistency, partially offset by lower net investment income.

Six Month Comparison

Results for the six months ended June 30, 2025 were generally consistent with the three month summary above.

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Corporate & Other

The following table summarizes the results of operations for the Corporate & Other segment, including intersegment eliminations.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Net investment income	$	13	$	18	$	29	$	39
Insurance claims and policyholders' benefits	108		27		117		19
Interest expense	31		35		63		69
Core loss	(114)		(53)		(150)		(75)

Three Month Comparison

Core loss increased $61 million for three months ended June 30, 2025 as compared with the same period in 2024. The increase was primarily due to an $88 million after-tax charge related to unfavorable net prior year loss reserve development associated with legacy mass tort abuse reserves as compared with a $28 million after-tax charge in the prior year period, as a result of our annual comprehensive review of legacy mass tort exposures undertaken in the second quarter of each year. The current quarter development charge included certain amounts in anticipation of the agreement in principle with regards to the Diocese of Rochester. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.

Six Month Comparison

Core loss increased $75 million for six months ended June 30, 2025 as compared with the same period in 2024 primarily due to a $106 million after-tax charge related to unfavorable net prior year loss reserve development associated with legacy mass tort abuse reserves as compared with a $28 million after-tax charge in the prior year period. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.

The following table summarizes the gross and net carried reserves for Corporate & Other.



(In millions)	June 30, 2025		December 31, 2024
Gross case reserves	$	1,264	$	1,241
Gross IBNR reserves	1,480		1,431
Total gross carried claim and claim adjustment expense reserves	$	2,744	$	2,672
Net case reserves	$	123	$	120
Net IBNR reserves	381		268
Total net carried claim and claim adjustment expense reserves	$	504	$	388

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INVESTMENTS

Net Investment Income

The significant components of Net investment income are presented in the following table. Fixed income securities, as presented, include both fixed maturity securities and non-redeemable preferred stock.


Periods ended June 30	Three Months						Six Months
(In millions)	2025			2024			2025			2024
Fixed income securities:
Taxable fixed income securities	$	508		$	484		$	1,004		$	956
Tax-exempt fixed income securities	36			36			70			74
Total fixed income securities	544			520			1,074			1,030
Limited partnership and common stock investments	100			78			154			146
Other, net of investment expense	18			20			38			51
Net investment income	$	662		$	618		$	1,266		$	1,227

Effective income yield for the fixed income securities portfolio	4.9		%	4.8		%	4.8		%	4.8		%
Limited partnership and common stock return	3.6		%	3.1		%	5.7		%	6.1		%

Net investment income increased $44 million and $39 million for the three and six months ended June 30, 2025 as compared with the same periods in 2024 driven by higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates, as well as favorable limited partnership and common stock returns.

Net Investment (Losses) Gains

The components of Net investment (losses) gains are presented in the following table.


Periods ended June 30	Three Months				Six Months
(In millions)	2025		2024		2025		2024
Fixed maturity securities:
Corporate bonds and other	$	(40)	$	(4)	$	(49)	$	(21)
States, municipalities and political subdivisions	—		(2)		(1)		(2)
Asset-backed	(8)		(6)		(7)		(21)
Total fixed maturity securities	(48)		(12)		(57)		(44)
Non-redeemable preferred stock	6		1		6		12
Derivatives, short-term and other	1		1		1		—
Mortgage loans	(5)		—		(5)		—
Net investment losses	(46)		(10)		(55)		(32)
Income tax benefit on net investment losses	10		1		12		6
Net investment losses, after tax	$	(36)	$	(9)	$	(43)	$	(26)

Pretax net investment losses increased $36 million for the three months ended June 30, 2025 as compared with the same period in 2024 driven by higher net losses on disposals of fixed maturity securities and higher impairment losses, partially offset by the favorable change in fair value of non-redeemable preferred stock.

Pretax net investment losses increased $23 million for the six months ended June 30, 2025 as compared with the same period in 2024 driven by higher net losses on disposals of fixed maturity securities and a lower favorable change in the fair value of non-redeemable preferred stock.

Further information on our investment gains and losses is set forth in Note C to the Condensed Consolidated Financial Statements included under Part I, Item 1.

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Portfolio Quality

The following table presents the estimated fair value and net unrealized gains (losses) of our fixed maturity securities by rating distribution.


	June 30, 2025				December 31, 2024
(In millions)	Estimated Fair Value		Net Unrealized Gains ( Losses)		Estimated Fair Value		Net Unrealized Gains ( Losses)
U.S. Government, Government agencies and Government-sponsored enterprises	$	3,124	$	(306)	$	2,936	$	(369)
AAA	3,410		(206)		3,010		(217)
AA	6,698		(585)		6,369		(567)
A	10,873		(266)		10,260		(379)
BBB	16,992		(452)		16,757		(729)
Non-investment grade	1,702		(61)		1,779		(64)
Total	$	42,799	$	(1,876)	$	41,111	$	(2,325)

As of June 30, 2025 and December 31, 2024, 1% of our fixed maturity portfolio was rated internally. Additionally, as of June 30, 2025 and December 31, 2024, we assigned a AAA rating to $287 million and $199 million of municipal bonds that were either pre-refunded or backed by mortgage loans guaranteed by a U.S. government agency or sponsored enterprise.

The following table presents available-for-sale fixed maturity securities in a gross unrealized loss position by ratings distribution.


	June 30, 2025
(In millions)	Estimated Fair Value		Gross Unrealized Losses
U.S. Government, Government agencies and Government-sponsored enterprises	$	2,086	$	322
AAA	1,608		280
AA	4,234		735
A	5,901		523
BBB	9,531		787
Non-investment grade	677		92
Total	$	24,037	$	2,739

The following table presents the maturity profile for these available-for-sale fixed maturity securities. Securities not due to mature on a single date are allocated based on weighted average life.


	June 30, 2025
(In millions)	Estimated Fair Value		Gross Unrealized Losses
Due in one year or less	$	1,198	$	22
Due after one year through five years	6,796		346
Due after five years through ten years	5,990		683
Due after ten years	10,053		1,688
Total	$	24,037	$	2,739

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Duration

A primary objective in the management of the investment portfolio is to optimize return relative to the corresponding liabilities and respective liquidity needs. Our views on the current interest rate environment, tax regulations, asset class valuations, specific security issuer and broader industry segment conditions as well as domestic and global economic conditions, are some of the factors that enter into an investment decision. We also continually monitor exposure to issuers of securities held and broader industry sector exposures and may from time to time adjust such exposures based on our views of a specific issuer or industry sector.

A further consideration in the management of the investment portfolio is the characteristics of the corresponding liabilities and the ability to align the duration of the portfolio to those liabilities and to meet future liquidity needs, minimize interest rate risk and maintain a level of income sufficient to support the underlying insurance liabilities. For portfolios where future liability cash flows are determinable and typically long term in nature, we segregate investments for asset/liability management purposes. The segregated investments support the long-term care and structured settlement liabilities in the Life & Group segment.

The effective durations of fixed income securities and short-term investments are presented in the following table. Amounts presented are net of payable and receivable amounts for securities purchased and sold, but not yet settled.


	June 30, 2025			December 31, 2024
(In millions)	Estimated Fair Value		Effective Duration (In years)	Estimated Fair Value		Effective Duration (In years)
Life & Group	$	15,338	9.8	$	14,915	9.8
Property & Casualty and Corporate & Other	29,472		4.5	28,779		4.3
Total	$	44,810	6.3	$	43,694	6.2

The investment portfolio is periodically analyzed for changes in duration and related price risk. Certain securities have duration characteristics that are variable based on market interest rates, credit spreads and other factors that may drive variability in the amount and timing of cash flows. Additionally, we periodically review the sensitivity of the portfolio to the level of foreign exchange rates and other factors that contribute to market price changes. A summary of these risks and specific analysis on changes is included in the Quantitative and Qualitative Disclosures About Market Risk included under Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2024.

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LIQUIDITY AND CAPITAL RESOURCES

Cash Flows

Our primary operating cash flow sources are premiums and investment income. Our primary operating cash flow uses are payments for claims, policy benefits and operating expenses, including interest expense on corporate debt. Additionally, cash may be paid or received for income taxes.

For the six months ended June 30, 2025, net cash provided by operating activities was $1,200 million as compared with $1,120 million for the same period in 2024. The increase in cash provided by operating activities was driven by an increase in premiums collected and higher cash from investment earnings, partially offset by an increase in net claim payments.

Cash flows from investing activities include the purchase and disposition of financial instruments, excluding those held as trading, and may include the purchase and sale of businesses, equipment and other assets not generally held for resale.

For the six months ended June 30, 2025, net cash used by investing activities was $471 million as compared $209 million for the same period in 2024. Net cash provided or used by investing activities is primarily driven by cash available from operations and by other factors, such as financing activities.

Cash flows from financing activities may include proceeds from the issuance of debt and equity securities, and outflows for stockholder dividends, repayment of debt and purchases of our common stock.

For the six months ended June 30, 2025, net cash used by financing activities was $847 million as compared with $878 million for the same period in 2024. Financing activities for the periods presented include:

• During the six months ended June 30, 2025, we paid dividends of $798 million and repurchased 700,000 shares of our common stock at an aggregate cost of $34 million.

• During the six months ended June 30, 2024, we paid dividends of $786 million and repurchased 450,000 shares of common stock at an aggregate cost of $20 million.

• In the second quarter of 2024, we repaid the $550 million outstanding aggregate principal balance of our 3.95% senior notes which came due May 15, 2024.

• In the first quarter of 2024, we issued $500 million of 5.125% notes due February 15, 2034.

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Common Stock Dividends

Cash dividends of $2.92 per share on our common stock, including a special cash dividend of $2.00 per share, were declared and paid during the six months ended June 30, 2025. On August 1, 2025, our Board of Directors declared a quarterly cash dividend of $0.46 per share, payable September 4, 2025 to stockholders of record on August 18, 2025. The declaration and payment of future dividends to holders of our common stock will be at the discretion of our Board of Directors and will depend on many factors, including our earnings, financial condition, business needs and regulatory constraints.

Liquidity

We believe that our present cash flows from operating, investing and financing activities are sufficient to fund our current and expected working capital and debt obligation needs and we do not expect this to change in the near term. There are currently no amounts outstanding under our $250 million senior unsecured revolving credit facility and no borrowings outstanding through our membership in the Federal Home Loan Bank of Chicago (FHLBC).

Dividends from Continental Casualty Company (CCC) are subject to the insurance holding company laws of the State of Illinois, the domiciliary state of CCC. Under these laws, ordinary dividends, or dividends that do not require prior approval by the Illinois Department of Insurance, are determined based on the greater of the prior year's statutory net income or 10% of statutory surplus as of the end of the prior year, as well as timing and amount of dividends paid in the preceding twelve months. Additionally, ordinary dividends may only be paid from earned surplus, which is calculated by removing unrealized gains from unassigned surplus. As of June 30, 2025 CCC was in a positive earned surplus position. CCC paid dividends of $610 million and $490 million to CNAF during the six months ended June 30, 2025 and 2024. The actual level of dividends paid in any year is determined after an assessment of available dividend capacity, holding company liquidity and cash needs as well as the impact the dividends will have on the statutory surplus of the applicable insurance company.

We have an effective shelf registration statement on file with the Securities and Exchange Commission under which we may publicly issue an unspecified amount of debt, equity or hybrid securities from time to time.

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ACCOUNTING STANDARDS UPDATE

For a discussion of Accounting Standards, see Note A to the Condensed Consolidated Financial Statements included under Part I, Item 1.

RECENT LEGISLATION

On July 4, 2025, H.R. 1, “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14,” commonly referred to as the One Big Beautiful Bill Act (OBBBA), was enacted. The OBBBA includes significant federal tax law changes which, among other impacts, modify and make permanent certain business tax provisions originally enacted in the 2017 Tax Cuts and Jobs Act. The OBBBA is subject to further clarification from the issuance of future technical guidance by the U.S. Department of Treasury. We are currently evaluating the impacts of the OBBBA but do not expect it to have a material impact on our results of operations or financial condition.

FORWARD-LOOKING STATEMENTS

This report contains a number of forward-looking statements which relate to anticipated future events rather than actual present conditions or historical events. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. Forward-looking statements in this report include any and all statements regarding expected developments in our insurance business, including losses and loss reserves (note that loss reserves for long-term care, A&EP and other mass tort claims are more uncertain, and therefore more difficult to estimate than loss reserves respecting traditional property and casualty exposures); the impact of routine ongoing insurance reserve reviews we conduct; our expectations concerning our revenues, earnings, expenses and investment activities; volatility in investment returns; and our proposed actions in response to trends in our business. Forward-looking statements, by their nature, are subject to a variety of inherent risks and uncertainties that could cause actual results to differ materially from the results projected in the forward-looking statements. We cannot control many of these risks and uncertainties. These risks and uncertainties include, but are not limited to, the following as well as those risks contained in the Risk Factors section of our 2024 Annual Report on Form 10-K:

Company-Specific Factors

• the risks and uncertainties associated with our insurance reserves, as outlined in the Critical Accounting Estimates sections of our 2024 Annual Report on Form 10-K and this report, and the Reserves - Estimates and Uncertainties section of our 2024 Annual Report on Form 10-K, including the sufficiency of the reserves and the possibility of future increases, which would be reflected in the results of operations in the period that the need for such adjustment is determined;

• the risk that the other parties to the transactions in which, subject to certain limitations, we ceded our legacy A&EP and excess workers' compensation (EWC) liabilities, respectively, will not fully perform their respective obligations to CNA, the uncertainty in estimating loss reserves for A&EP and EWC liabilities and the possible continued exposure of CNA to liabilities for A&EP and EWC claims that are not covered under the terms of the respective transactions; and

• the performance of reinsurance companies under reinsurance contracts with us.

Industry and General Market Factors

• general economic and business conditions, including potential recessionary conditions that may decrease the size and number of our insurance customers and create losses in our lines of business, and inflationary pressures on medical care costs, construction costs and other economic sectors;

• the effect of changes in tariffs, as well as significant uncertainty surrounding U.S. tariff policy generally, may adversely impact the economic environment, inflation expectations and certain loss costs (that would increase the cost of claims) and may result in decreases in the size and number of our insurance customers, in addition to potentially adversely affecting the performance of our investments;

• the effects of social inflation, including frequency of nuclear verdicts and increased litigation activity, on the severity of claims;

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• the effects on the frequency of claims of reviver statutes that extend, or eliminate, the statute of limitations for the reporting of claims, including statutes passed in certain states with respect to sexual abuse;

• the impact of competitive products, policies and pricing and the competitive environment in which we operate, including changes in our book of business;

• product and policy availability and demand and market responses, including the level of ability to obtain rate increases;

• the COVID-19 pandemic, other potential pandemics and related measures to mitigate the spread of the foregoing may continue to result in increased claims and related litigation risk across our enterprise;

• conditions in the capital and credit markets, including uncertainty and instability in these markets, as well as the overall economy, and their impact on the returns, types, liquidity and valuation of our investments;

• conditions in the capital and credit markets that may limit our ability to raise significant amounts of capital on favorable terms or at all; and

• the possibility of changes in our ratings by ratings agencies, including the inability to access certain markets or distribution channels and the required collateralization of future payment obligations as a result of such changes, and changes in rating agency policies and practices.

Regulatory, Legal and Operational Factors

• regulatory and legal initiatives and compliance with governmental regulations and other legal requirements, which are increasing in complexity and number, change frequently, sometimes conflict, and could expose us to significant monetary damages, regulatory enforcement actions, fines and/or criminal prosecution in one or more jurisdictions, including regulations related to cybersecurity protocols (which continue to evolve in breadth, sophistication and maturity in response to an ever-evolving threat landscape) or utilization of artificial intelligence, legal inquiries by state authorities, judicial interpretations within the regulatory framework, including interpretation of policy provisions, decisions regarding coverage and theories of liability, legislative actions that increase claimant activity, including those revising applicability of statutes of limitations, trends in litigation and the outcome of any litigation involving us and rulings and changes in tax laws and regulations;

• regulatory limitations, impositions and restrictions upon us, including with respect to our ability to increase premium rates, and the effects of assessments and other surcharges for guaranty funds and second-injury funds, other mandatory pooling arrangements and future assessments levied on insurance companies;

• regulatory limitations and restrictions, including limitations upon our ability to receive dividends from our insurance subsidiaries, imposed by regulatory authorities, including regulatory capital adequacy standards;

• breaches of our or our vendors' data security infrastructure resulting in unauthorized access to systems and information, and/or interruption of operations; and

• regulatory and legal implications relating to the sophisticated cyber incident sustained by the Company in March 2021, or any future cyber incidents, that may arise.

Impact of Natural and Man-Made Disasters and Mass Tort Claims

• weather and other natural physical events, including the severity and frequency of storms, hail, snowfall and other winter conditions, natural disasters such as hurricanes, tornados and earthquakes, as well as climate change, including effects on global weather patterns, greenhouse gases, sea, land and air temperatures, sea levels, wildfires, rain, hail and snow;

• regulatory requirements imposed by coastal state regulators in the wake of hurricanes or other natural disasters, including limitations on the ability to exit markets or to non-renew, cancel or change terms and conditions in policies, as well as mandatory assessments to fund any shortfalls arising from the inability of quasi-governmental insurers to pay claims;

• man-made disasters, including the possible occurrence of terrorist attacks, the unpredictability of the nature, targets, severity or frequency of such events, and the effect of the absence or insufficiency of applicable terrorism legislation on coverages;

• the occurrence of epidemics and pandemics; and

• mass tort claims, including those related to exposure to potentially harmful products or substances such as glyphosate, lead paint, per- and polyfluoroalkyl substances (PFAS) and opioids, sexual abuse and molestation claims and claims arising from changes that repeal or weaken tort reforms.

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Our forward-looking statements speak only as of the date of the filing of this Quarterly Report on Form 10-Q and we do not undertake any obligation to update or revise any forward-looking statement to reflect events or circumstances after the date of the statement, even if our expectations or any related events or circumstances change.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

There were no material changes in our market risk components for the three months ended June 30, 2025. See the Quantitative and Qualitative Disclosures About Market Risk included in Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2024 for further information. Additional information related to portfolio duration is discussed in the Investments section of our Management's Discussion and Analysis of Financial Condition and Results of Operations included in Part I, Item 2.

Item 4. Controls and Procedures

The Company maintains a system of disclosure controls and procedures which are designed to ensure that information required to be disclosed by the Company in reports that it files or submits to the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including this report, is recorded, processed, summarized and reported on a timely basis. These disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed under the Exchange Act is accumulated and communicated to the Company's management on a timely basis to allow decisions regarding required disclosure.

As of June 30, 2025, the Company's management, including the Company's Chief Executive Officer (CEO) and Chief Financial Officer (CFO), conducted an evaluation of the effectiveness of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on this evaluation, the CEO and CFO have concluded that the Company's disclosure controls and procedures are effective as of June 30, 2025.

There has been no change in the Company’s internal control over financial reporting (as defined in Rules 13a-15 (f) and 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2025 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. Other Information

Item 1. Legal Proceedings

Information on our legal proceedings is set forth in Note G to the Condensed Consolidated Financial Statements included under Part I, Item 1.

Item 6. Exhibits

See Exhibit Index.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		CNA Financial Corporation

Dated: August 4, 2025	By	/s/ Scott R. Lindquist
		Scott R. Lindquist Executive Vice President and Chief Financial Officer (Duly authorized officer and principal financial officer)

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EXHIBIT INDEX


Description of Exhibit			Exhibit Number

Amended and Restated Investment Facilities and Services Agreement, dated July 1, 2025, by and among Loews/CNA Holdings, Inc., CNA Financial Corporation and the Participating Subsidiaries			10.1

General Release & Separation Agreement, dated July 3, 2025 between CNA Financial Corporation and Susan A. Stone			10.2

Certification of Chief Executive Officer			31.1

Certification of Chief Financial Officer			31.2

Written Statement of the Chief Executive Officer of CNA Financial Corporation Pursuant to 18 U.S.C. Section 1350 (As adopted by Section 906 of the Sarbanes-Oxley Act of 2002)			32.1

Written Statement of the Chief Financial Officer of CNA Financial Corporation Pursuant to 18 U.S.C. Section 1350 (As adopted by Section 906 of the Sarbanes-Oxley Act of 2002)			32.2

XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document			101.INS

Inline XBRL Taxonomy Extension Schema			101.SCH

Inline XBRL Taxonomy Extension Calculation Linkbase			101.CAL

Inline XBRL Taxonomy Extension Definition Linkbase			101.DEF

Inline XBRL Taxonomy Label Linkbase			101.LAB

Inline XBRL Taxonomy Extension Presentation Linkbase			101.PRE

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)			104.1

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Part I Item 1. Condensed Consolidated Financial Statements Item 2. Management's Discussion and Analysis (md&a) Of Financial Conditions and Results Of Operations Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures Part II. Other Information Item 1. Legal Proceedings Item 6. Exhibits

Exhibits

Amended and Restated Investment Facilities and Services Agreement, dated July 1, 2025, by and among Loews/CNA Holdings, Inc., CNA Financial Corporation and the Participating Subsidiaries 10.1 General Release & Separation Agreement, dated July 3, 2025 between CNA Financial Corporation and Susan A. Stone 10.2 Certification of Chief Executive Officer 31.1 Certification of Chief Financial Officer 31.2 Written Statement of the Chief Executive Officer of CNA Financial Corporation Pursuant to 18 U.S.C. Section1350 (As adopted by Section906 of the Sarbanes-Oxley Act of 2002) 32.1 Written Statement of the Chief Financial Officer of CNA Financial Corporation Pursuant to 18 U.S.C. Section1350 (As adopted by Section906 of the Sarbanes-Oxley Act of 2002) 32.2

CNA 10-Q Quarter ended June 30, 2025

Exhibits