Exhibit

CNA Financial Corporation

Supplemental Financial Information

March 31, 2019

This report is for informational purposes only and includes consolidated financial statements and financial exhibits that are unaudited. This report should be read in conjunction with documents filed with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K.

Table of Contents



	Page
Consolidated Results
Statements of Operations..................................................................................................................................................................................................	1
Components of Income (Loss), Per Share Data and Return on Equity.............................................................................................................................	2
Selected Balance Sheet Data and Statement of Cash Flows Data...................................................................................................................................	3
Results of Operations
Property & Casualty...........................................................................................................................................................................................................	4
Specialty............................................................................................................................................................................................................................	5
Commercial.......................................................................................................................................................................................................................	6
International.......................................................................................................................................................................................................................	7
Life & Group......................................................................................................................................................................................................................	8
Corporate & Other.............................................................................................................................................................................................................	9
Investment Information
Investment Summary - Consolidated................................................................................................................................................................................	10
Investment Summary - Property & Casualty and Corporate & Other................................................................................................................................	11
Investment Summary - Life & Group.................................................................................................................................................................................	12
Investments - Fixed Maturity Securities by Credit Rating..................................................................................................................................................	13
Components of Net Investment Income............................................................................................................................................................................	14
Other
Claim & Claim Adjustment Expense Reserve Rollforward................................................................................................................................................	15
Life & Group Policyholder Reserves..................................................................................................................................................................................	16
Definitions and Presentation..............................................................................................................................................................................................	17

Statements of Operations



Three months ended March 31
(In millions)	2019			2018			Change
Revenues:
Net earned premiums	$	1,803		$	1,785		1		%
Net investment income	571			490			17
Net investment gains (losses):
Other-than-temporary impairment (OTTI) losses	(14		)	(6		)
Other net investment gains (losses)	45			18
Net investment gains (losses)	31			12
Non-insurance warranty revenue	281			238
Other revenues	9			10
Total revenues	2,695			2,535			6
Claims, Benefits and Expenses:
Insurance claims and policyholders' benefits	1,357			1,339
Amortization of deferred acquisition costs	342			296
Non-insurance warranty expense	260			216
Other operating expenses	283			303
Interest	34			35
Total claims, benefits and expenses	2,276			2,189			(4	)
Income (loss) before income tax	419			346
Income tax (expense) benefit	(77		)	(55		)
Net income (loss)	$	342		$	291		18		%

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



Three months ended March 31
(In millions, except per share data)	2019			2018
Components of Income (Loss)
Core income (loss)	$	318		$	281
Net investment gains (losses)	24			10
Net income (loss)	$	342		$	291

Diluted Earnings (Loss) Per Common Share
Core income (loss)	$	1.17		$	1.03
Net investment gains (losses)	0.08			0.04
Diluted earnings (loss) per share	$	1.25		$	1.07

Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic	271.6			271.4
Diluted	272.6			272.4

Return on Equity
Net income (loss) ⁽¹⁾	12.1		%	9.8		%
Core income (loss) ⁽²⁾	10.7			9.3

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

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

Selected Balance Sheet Data and Statement of Cash Flows Data



(In millions, except per share data)	March 31, 2019			December 31, 2018
Total investments	$	45,639		$	44,486
Reinsurance receivables, net of allowance for uncollectible receivables	4,277			4,426
Total assets	58,477			57,152
Insurance reserves	37,336			36,764
Debt	2,681			2,680
Total liabilities	47,022			45,935
Accumulated other comprehensive income (loss) ⁽¹⁾	(324		)	(878		)
Total stockholders' equity	11,455			11,217

Book value per common share	$	42.19		$	41.32
Book value per common share excluding AOCI	$	43.38		$	44.55

Outstanding shares of common stock (in millions of shares)	271.5			271.5

Statutory capital and surplus - Combined Continental Casualty Companies ⁽²⁾	$	10,202		$	10,411



Three months ended March 31	2019			2018
Net cash flows provided (used) by operating activities	$	287		$	218
Net cash flows provided (used) by investing activities	289			489
Net cash flows provided (used) by financing activities	(665		)	(781		)
Net cash flows provided (used) by operating, investing and financing activities	$	(89	)	$	(74	)

(1) As of March 31, 2019 and December 31, 2018, the net unrealized gains on investments included in AOCI were net of after-tax Shadow Adjustments of $1,458 million and $1,078 million. To the extent that unrealized gains on fixed income securities supporting certain products within the Life & Group segment would result in a premium deficiency if realized, an increase in Insurance reserves are recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (loss) (Shadow Adjustments).

(2) Statutory capital and surplus as of March 31, 2019 is preliminary.

Property & Casualty - Results of Operations



Three months ended March 31
(In millions)	2019				2018				Change
Gross written premiums	$	2,966			$	2,991			(1	)	%
Net written premiums	1,806				1,813				—

Net earned premiums	1,674				1,651				1
Net investment income	360				285
Non-insurance warranty revenue	281				238
Other revenues	8				9
Total operating revenues	2,323				2,183				6
Insurance claims and policyholders' benefits	1,070				995
Amortization of deferred acquisition costs	342				296
Other insurance related expenses	225				247
Non-insurance warranty expense	260				216
Other expenses	27				18
Total claims, benefits and expenses	1,924				1,772				(9	)
Core income (loss) before income tax	399				411
Income tax (expense) benefit on core income (loss)	(85		)		(84		)
Core income (loss)	$	314			$	327			(4	)	%

Other Performance Metrics
Underwriting gain (loss)	$	37			$	113			(67	)	%

Loss & LAE ratio	63.6			%	59.9			%	(3.7	)	pts
Acquisition expense ratio	20.1				19.4				(0.7	)
Underwriting expense ratio	13.7				13.4				(0.3	)
Expense ratio	33.8				32.8				(1.0	)
Dividend ratio	0.4				0.4				—
Combined ratio	97.8			%	93.1			%	(4.7	)	pts
Combined ratio excluding catastrophes and development	94.9			%	93.2			%	(1.7	)	pts

Net accident year catastrophe losses incurred	$	58			$	34
Effect on loss & LAE ratio	3.4			%	2.1			%	(1.3	)	pts

Net prior year development and other: (favorable) / unfavorable	$	(9	)		$	(36	)
Effect on loss & LAE ratio	(0.5		)	%	(2.2		)	%	(1.7	)	pts

Rate	3			%	2			%	1		pts
Renewal premium change	3			%	5			%	(2	)	pts
Retention	83			%	85			%	(2	)	pts
New business	$	330			$	355			(7	)	%

Specialty - Results of Operations



Three months ended March 31
(In millions)	2019				2018				Change
Gross written premiums	$	1,701			$	1,771			(4	)	%
Net written premiums	698				686				2

Net earned premiums	661				672				(2	)
Net investment income	155				122
Non-insurance warranty revenue	281				238
Other revenues	1				1
Total operating revenues	1,098				1,033				6
Insurance claims and policyholders' benefits	393				380
Amortization of deferred acquisition costs	147				145
Other insurance related expenses	70				64
Non-insurance warranty expense	260				216
Other expenses	12				11
Total claims, benefits and expenses	882				816				(8	)
Core income (loss) before income tax	216				217
Income tax (expense) benefit on core income (loss)	(47		)		(46		)
Core income (loss)	$	169			$	171			(1	)	%

Other Performance Metrics
Underwriting gain (loss)	$	51			$	83			(39	)	%

Loss & LAE ratio	59.3			%	56.3			%	(3.0	)	pts
Acquisition expense ratio	21.0				20.1				(0.9	)
Underwriting expense ratio	11.8				10.9				(0.9	)
Expense ratio	32.8				31.0				(1.8	)
Dividend ratio	0.2		%		0.2				—
Combined ratio	92.3			%	87.5			%	(4.8	)	pts
Combined ratio excluding catastrophes and development	93.5			%	91.5			%	(2.0	)	pts

Net accident year catastrophe losses incurred	$	12			$	3
Effect on loss & LAE ratio	1.8			%	0.5			%	(1.3	)	pts

Net prior year development and other: (favorable) / unfavorable	$	(20	)		$	(30	)
Effect on loss & LAE ratio	(3.0		)	%	(4.5		)	%	(1.5	)	pts

Rate	3			%	2			%	1		pts
Renewal premium change	4			%	4			%	—		pts
Retention	89			%	85			%	4		pts
New business	$	86			$	80			8		%

Commercial - Results of Operations



Three months ended March 31
(In millions)	2019				2018				Change
Gross written premiums	$	941			$	880			7		%
Net written premiums	849				832				2

Net earned premiums	763				743				3
Net investment income	190				149
Other revenues	7				8
Total operating revenues	960				900				7
Insurance claims and policyholders' benefits	515				473
Amortization of deferred acquisition costs	127				121
Other insurance related expenses	130				127
Other expenses	11				11
Total claims, benefits and expenses	783				732				(7	)
Core income (loss) before income tax	177				168
Income tax (expense) benefit on core income (loss)	(38		)		(35		)
Core income (loss)	$	139			$	133			5		%

Other Performance Metrics
Underwriting gain (loss)	$	(9	)		$	22			(141	)	%

Loss & LAE ratio	66.9			%	63.0			%	(3.9	)	pts
Acquisition expense ratio	18.1				18.0				(0.1	)
Underwriting expense ratio	15.7				15.5				(0.2	)
Expense ratio	33.8				33.5				(0.3	)
Dividend ratio	0.6				0.6				—
Combined ratio	101.3			%	97.1			%	(4.2	)	pts
Combined ratio excluding catastrophes and development	96.5			%	93.9			%	(2.6	)	pts

Net accident year catastrophe losses incurred	$	40			$	29
Effect on loss & LAE ratio	5.2			%	3.9			%	(1.3	)	pts

Net prior year development and other: (favorable) / unfavorable	$	(3	)		$	(6	)
Effect on loss & LAE ratio	(0.4		)	%	(0.7		)	%	(0.3	)	pts

Rate	2			%	1			%	1		pts
Renewal premium change	3			%	5			%	(2	)	pts
Retention	85			%	85			%	—		pts
New business	$	164			$	182			(10	)	%

International - Results of Operations



Three months ended March 31
(In millions)	2019				2018				Change
Gross written premiums	$	324			$	340			(5	)	%
Net written premiums	259				295				(12	)

Net earned premiums	250				236				6
Net investment income	15				14
Other revenues	—				—
Total operating revenues	265				250				6
Insurance claims and policyholders' benefits	162				142
Amortization of deferred acquisition costs	68				30
Other insurance related expenses	25				56
Other expenses	4				(4		)
Total claims, benefits and expenses	259				224				(16	)
Core income (loss) before income tax	6				26
Income tax (expense) benefit on core income (loss)	—				(3		)
Core income (loss)	$	6			$	23			(74	)	%

Other Performance Metrics
Underwriting gain (loss)	$	(5	)		$	8			(163	)	%

Loss & LAE ratio	64.8			%	60.4			%	(4.4	)	pts
Acquisition expense ratio	24.1				22.0				(2.1	)
Underwriting expense ratio	13.0				14.2				1.2
Expense ratio	37.1				36.2				(0.9	)
Dividend ratio	—				—				—
Combined ratio	101.9			%	96.6			%	(5.3	)	pts
Combined ratio excluding catastrophes and development	94.1			%	96.1			%	2.0		pts

Net accident year catastrophe losses incurred	$	6			$	2
Effect on loss & LAE ratio	2.3			%	0.7			%	(1.6	)	pts

Net prior year development and other: (favorable) / unfavorable	$	14			$	—
Effect on loss & LAE ratio	5.5			%	(0.2		)	%	(5.7	)	pts

Rate	5			%	3			%	2		pts
Renewal premium change	1			%	8			%	(7	)	pts
Retention	71			%	83			%	(12	)	pts
New business	$	80			$	93			(14	)	%

Life & Group - Results of Operations



Three months ended March 31
(In millions)	2019			2018		Change
Net earned premiums	$	130		$	134	(3	)	%
Net investment income	204			200
Other revenues	1			1
Total operating revenues	335			335		—
Insurance claims and policyholders' benefits	308			303
Other insurance related expenses	28			30
Other expenses	2			2
Total claims, benefits and expenses	338			335		(1	)
Core income (loss) before income tax	(3		)	—
Income tax (expense) benefit on core income (loss)	13			14
Core income (loss)	$	10		$	14	(29	)	%

Corporate & Other - Results of Operations



Three months ended March 31
(In millions)	2019			2018			Change
Net earned premiums	$	(1	)	$	—
Net investment income	7			5
Other revenues	—			—
Total operating revenues	6			5			20	%
Insurance claims and policyholders' benefits	(21		)	41
Other insurance related expenses	(2		)	—
Other expenses	37			41
Total claims, benefits and expenses	14			82			83
Core income (loss) before income tax	(8		)	(77		)
Income tax (expense) benefit on core income (loss)	2			17
Core income (loss)	$	(6	)	$	(60	)	90	%

Investment Summary - Consolidated



	March 31, 2019					December 31, 2018
(In millions)	Carrying Value			Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	20,476		$	1,170	$	19,164	$	396
States, municipalities and political subdivisions:
Tax-exempt	7,671			924		7,874		733
Taxable	2,925			375		2,874		334
Total states, municipalities and political subdivisions	10,596			1,299		10,748		1,067
Asset-backed:
RMBS	4,832			72		4,826		11
CMBS	2,072			46		2,196		(4		)
Other ABS	1,890			13		1,962		(13		)
Total asset-backed	8,794			131		8,984		(6		)
U.S. Treasury and obligations of government-sponsored enterprises	164			2		159		3
Foreign government	513			11		481		1
Redeemable preferred stock	10			—		10		—
Total fixed maturity securities	40,553			2,613		39,546		1,461
Equities:
Common stock	140			—		148		—
Non-redeemable preferred stock	674			—		632		—
Total equities	814			—		780		—
Limited partnership investments	1,876			—		1,982		—
Other invested assets	59			—		53		—
Mortgage loans	863			—		839		—
Short term investments	1,474			—		1,286		(1		)
Total investments	$	45,639		$	2,613	$	44,486	$	1,460

Net receivable/(payable) on investment activity	$	(7	)			$	176

Effective duration (in years)	6.0					6.0
Weighted average rating	A					A

RMBS - Residential mortgage-backed securities

CMBS - Commercial mortgage-backed securities

Other ABS - Other asset-backed securities

Investment Summary - Property & Casualty and Corporate & Other



	March 31, 2019					December 31, 2018
(In millions)	Carrying Value			Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	13,382		$	250	$	12,844	$	(180	)
States, municipalities and political subdivisions:
Tax-exempt	516			28		661		25
Taxable	1,212			75		1,198		68
Total states, municipalities and political subdivisions	1,728			103		1,859		93
Asset-backed:
RMBS	4,675			68		4,671		8
CMBS	1,968			44		2,093		(4		)
Other ABS	1,782			8		1,840		(11		)
Total asset-backed	8,425			120		8,604		(7		)
U.S. Treasury and obligations of government-sponsored enterprises	137			1		133		3
Foreign government	508			11		481		1
Redeemable preferred stock	5			—		5		—
Total fixed maturity securities	24,185			485		23,926		(90		)
Equities:
Common stock	140			—		148		—
Non-redeemable preferred stock	175			—		164		—
Total equities	315			—		312		—
Limited partnership investments	1,876			—		1,982		—
Other invested assets	59			—		53		—
Mortgage loans	623			—		631		—
Short term investments	1,368			—		1,232		(1		)
Total investments	$	28,426		$	485	$	28,136	$	(91	)

Net receivable/(payable) on investment activity	$	(2	)			$	106

Effective duration (in years)	4.2					4.4
Weighted average rating	A-					A-

Investment Summary - Life & Group



	March 31, 2019					December 31, 2018
(In millions)	Carrying Value			Net Unrealized Gains (Losses)		Carrying Value		Net Unrealized Gains (Losses)
Fixed maturity securities:
Corporate and other bonds	$	7,094		$	920	$	6,320	$	576
States, municipalities and political subdivisions:
Tax-exempt	7,155			896		7,213		708
Taxable	1,713			300		1,676		266
Total states, municipalities and political subdivisions	8,868			1,196		8,889		974
Asset-backed:
RMBS	157			4		155		3
CMBS	104			2		103		—
Other ABS	108			5		122		(2		)
Total asset-backed	369			11		380		1
U.S. Treasury and obligations of government-sponsored enterprises	27			1		26		—
Foreign government	5			—		—		—
Redeemable preferred stock	5			—		5		—
Total fixed maturity securities	16,368			2,128		15,620		1,551
Equities:
Common stock	—			—		—		—
Non-redeemable preferred stock	499			—		468		—
Total equities	499			—		468		—
Limited partnership investments	—			—		—		—
Other invested assets	—			—		—		—
Mortgage loans	240			—		208		—
Short term investments	106			—		54		—
Total investments	$	17,213		$	2,128	$	16,350	$	1,551

Net receivable/(payable) on investment activity	$	(5	)			$	70

Effective duration (in years)	8.7					8.4
Weighted average rating	A					A

Investments - Fixed Maturity Securities by Credit Rating



March 31, 2019	U.S. Government, Government agencies and Government-sponsored enterprises					AAA					AA						A						BBB					Non-investment grade						Total
(In millions)	Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)			Fair Value			Net Unrealized Gains (Losses)			Fair Value			Net Unrealized Gains (Losses)		Fair Value			Net Unrealized Gains (Losses)			Fair Value			Net Unrealized Gains (Losses)
Corporate and other bonds	$	—		$	—	$	50		$	—	$	532		$	30		$	4,393		$	388		$	13,352		$	758	$	2,149		$	(6	)	$	20,476		$	1,170
States, municipalities and political subdivisions:
Tax-exempt	—			—		1,785			248		3,095			368			2,458			248			317			59		16			1			7,671			924
Taxable	—			—		399			30		1,832			218			673			126			21			1		—			—			2,925			375
Total states, municipalities and political subdivisions	—			—		2,184			278		4,927			586			3,131			374			338			60		16			1			10,596			1,299
Asset-backed:
RMBS	4,173			30		185			1		14			—			63			—			20			—		377			41			4,832			72
CMBS	41			—		345			13		643			21			204			4			514			5		325			3			2,072			46
Other ABS	—			—		48			—		145			(1		)	1,041			(3		)	639			12		17			5			1,890			13
Total asset-backed	4,214			30		578			14		802			20			1,308			1			1,173			17		719			49			8,794			131
U.S. Treasury and obligations of government-sponsored enterprises	164			2		—			—		—			—			—			—			—			—		—			—			164			2
Foreign government	—			—		161			3		277			5			56			2			19			1		—			—			513			11
Redeemable preferred stock	—			—		—			—		—			—			—			—			10			—		—			—			10			—
Total fixed maturity securities	$	4,378		$	32	$	2,973		$	295	$	6,538		$	641		$	8,888		$	765		$	14,892		$	836	$	2,884		$	44		$	40,553		$	2,613

Percentage of total fixed maturity securities	11		%			7		%			16		%				22		%				37		%			7		%				100		%

Components of Net Investment Income



Three months ended March 31	Consolidated
(In millions)	2019			2018
Taxable fixed income securities	$	383		$	350
Tax-exempt fixed income securities	82			105
Total fixed income securities	465			455
Limited partnership and common stock investments	96			31
Other, net of investment expense	10			4
Pretax net investment income	$	571		$	490
Fixed income securities, after tax	$	380		$	377
Net investment income, after tax	465			405

Effective income yield for fixed income securities, pretax	4.8		%	4.7		%
Effective income yield for fixed income securities, after tax	3.9			3.9
Limited partnership and common stock return	4.5			1.3



	Property & Casualty and Corporate & Other
Three months ended March 31	Property & Casualty and Corporate & Other
(In millions)	2019			2018
Taxable fixed income securities	$	253		$	233
Tax-exempt fixed income securities	6			20
Total fixed income securities	259			253
Limited partnership and common stock investments	96			31
Other, net of investment expense	12			6
Pretax net investment income	$	367		$	290
Fixed income securities, after tax	$	205		$	203
Net investment income, after tax	291			233

Effective income yield for fixed income securities, pretax	4.3		%	4.1		%
Effective income yield for fixed income securities, after tax	3.4			3.3



Three months ended March 31	Life & Group
(In millions)	2019				2018
Taxable fixed income securities	$	130			$	117
Tax-exempt fixed income securities	76				85
Total fixed income securities	206				202
Limited partnership and common stock investments	—				—
Other, net of investment expense	(2		)		(2		)
Pretax net investment income	$	204			$	200
Fixed income securities, after tax	$	175			$	174
Net investment income, after tax	174				172

Effective income yield for fixed income securities, pretax	5.6			%	5.7			%
Effective income yield for fixed income securities, after tax	4.8				4.9

Claim & Claim Adjustment Expense Reserve Rollforward



Three months ended March 31, 2019 (In millions)	Specialty			Commercial			International			P&C Operations			Life & Group			Corporate & Other			Total Operations
Claim & claim adjustment expense reserves, beginning of period
Gross	$	5,465		$	8,743		$	1,750		$	15,958		$	3,601		$	2,425		$	21,984
Ceded	634			745			226			1,605			181			2,233			4,019
Net	4,831			7,998			1,524			14,353			3,420			192			17,965

Net incurred claim & claim adjustment expenses	392			509			162			1,063			302			2			1,367
Net claim & claim adjustment expense payments	(413		)	(594		)	(138		)	(1,145		)	(258		)	(6		)	(1,409		)
Foreign currency translation adjustment and other	1			—			9			10			3			—			13

Claim & claim adjustment expense reserves, end of period
Net	4,811			7,913			1,557			14,281			3,467			188			17,936
Ceded	659			710			230			1,599			178			2,123			3,900
Gross	$	5,470		$	8,623		$	1,787		$	15,880		$	3,645		$	2,311		$	21,836

Life & Group Policyholder Reserves



March 31, 2019
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,792	$	9,138	$	11,930
Structured settlement annuities	527		—		527
Other	12		—		12
Total	3,331		9,138		12,469
Shadow adjustments	136		1,710		1,846
Ceded reserves	178		230		408
Total gross reserves	$	3,645	$	11,078	$	14,723



December 31, 2018
(In millions)	Claim and claim adjustment expenses		Future policy benefits		Total
Long term care	$	2,761	$	9,113	$	11,874
Structured settlement annuities	530		—		530
Other	14		—		14
Total	3,305		9,113		12,418
Shadow adjustments	115		1,250		1,365
Ceded reserves	181		234		415
Total gross reserves	$	3,601	$	10,597	$	14,198

Definitions and Presentation


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


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


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


•	Corporate & Other segment primarily includes certain corporate expenses including interest on corporate debt and the results of certain property and casualty business in run-off, including CNA Re and asbestos and environmental pollution. Intersegment eliminations are also included in this segment.


•	Management uses the core income (loss) financial measure to monitor the Company’s operations. Please refer to Note O to the Consolidated Financial Statements within the December 31, 2018 Form 10-K for further discussion of this non-GAAP financial measure.


•	Management uses underwriting results to monitor insurance operations. Underwriting results are pretax and are calculated as net earned premiums less total insurance expenses, which includes insurance claims and policyholders' benefits, amortization of deferred acquisition costs and other insurance related expenses.

•

In the evaluation of the results of Specialty, Commercial and International, management uses the loss ratio, the expense ratio, the dividend ratio and the combined ratio. These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America. The loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums. The expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums. The dividend ratio is the ratio of policyholders' dividends incurred to net earned premiums. The combined ratio is the sum of the loss, expense and dividend ratios. In addition, management also utilizes renewal premium change, rate, retention and new business in evaluating operating trends. Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes. Rate represents the average change in price on policies that renew excluding exposure change. For certain products within Small Business, where quantifiable, rate includes the influence of new business as well. Exposure represents the measure of risk used in the pricing of the insurance product. Retention represents the percentage of premium dollars renewed in comparison to the expiring premium dollars from policies available to renew. Rate, renewal premium change and retention presented for the prior year is updated to reflect subsequent activity on policies written in the period. New business represents premiums from policies written with new customers and additional policies written with existing customers.

•

This financial supplement may also reference or contain financial measures that are not in accordance with GAAP. Management utilizes these financial measures to monitor the Company's insurance operations and investment portfolio. Core income, which is derived from certain income statement amounts, is used by management to monitor performance of the Company's insurance operations. The Company's investment portfolio is monitored by management through analysis of various factors including unrealized gains and losses on securities, portfolio duration and exposure to market and credit risk.

•

Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of i) net investment gains or losses, ii) income or loss from discontinued operations, iii) any cumulative effects of changes in accounting guidance and iv) deferred tax asset and liability remeasurement as a result of an enacted U.S. Federal tax rate change. The calculation of core income (loss) excludes net investment gains or losses because net investment gains or losses are generally driven by economic factors that are not necessarily consistent with key drivers of underwriting performance, and are therefore not considered an indication of trends in insurance operations. Management monitors core income (loss) for each business segment to assess segment performance. Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure. For reconciliations of non-GAAP measures to the most comparable GAAP measures and other information, please refer herein and/or to CNA's most recent 10-K on file with the Securities and Exchange Commission, as well as the press release, available at www.cna.com.


•	Pretax net prior year development and other includes the effects of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.


•	Net investment income from fixed income securities, as presented, includes both fixed maturity securities and non-redeemable preferred stock.


•	Certain immaterial differences are due to rounding.


•	N/M = Not Meaningful