EX-99.2 3 q32024exhibit992.htm EX-99.2

CNA Financial Corporation
Supplemental Financial Information
September 30, 2024
This report is for informational purposes only and includes consolidated financial statements and financial exhibits that are unaudited. This report should be read in conjunction with documents filed with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

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 s 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
Net Investment Gains (Losses) | 15
Other |
Claim & Claim Adjustment Expense Reserve Rollforward | 16
Life & Group Policyholder Reserves | 17
Definitions and Presentation | 18

Statements of Operations

Periods ended September 30 | Three Months |  |  | Nine Months |
(In millions) | 2024 |  | 2023 |  | Change |  |  | 2024 |  | 2023 |  | Change |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |
Net earned premiums | $ | 2,593 |  | $ | 2,406 |  | 8 |  | % |  | $ | 7,532 |  | $ | 7,001 |  | 8 |  | %
Net investment income | 626 |  | 553 |  | 13 |  |  |  | 1,853 |  | 1,653 |  | 12 |  |
Net investment (losses) gains | (10) |  | (38) |  |  |  |  | (42) |  | (105) |  |  |
Non-insurance warranty revenue | 401 |  | 407 |  |  |  |  | 1,212 |  | 1,221 |  |  |
Other revenues | 8 |  | 8 |  |  |  |  | 26 |  | 22 |  |  |
Total revenues | 3,618 |  |  | 3,336 |  |  | 8 |  |  |  | 10,581 |  |  | 9,792 |  |  | 8 |  |
Claims, Benefits and Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Insurance claims and policyholders’ benefits (re-measurement loss of $(48), $(41), $(88) and $(75)) | 2,019 |  | 1,826 |  |  |  |  | 5,708 |  | 5,258 |  |  |
Amortization of deferred acquisition costs | 457 |  | 426 |  |  |  |  | 1,336 |  | 1,208 |  |  |
Non-insurance warranty expense | 387 |  | 386 |  |  |  |  | 1,169 |  | 1,154 |  |  |
Other operating expenses | 362 |  | 338 |  |  |  |  | 1,077 |  | 1,021 |  |  |
Interest | 32 |  | 34 |  |  |  |  | 101 |  | 93 |  |  |
Total claims, benefits and expenses | 3,257 |  |  | 3,010 |  |  | (8) |  |  |  | 9,391 |  |  | 8,734 |  |  | (8) |  |
Income (loss) before income tax | 361 |  |  | 326 |  |  |  |  |  | 1,190 |  |  | 1,058 |  |  |  |
Income tax (expense) benefit | (78) |  |  | (68) |  |  |  |  |  | (252) |  |  | (220) |  |  |  |
Net income (loss) | $ | 283 |  |  | $ | 258 |  |  | 10 |  | % |  | $ | 938 |  |  | $ | 838 |  |  | 12 |  | %

1

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

Periods ended September 30 | Three Months |  |  | Nine Months |
(In millions, except per share data) | 2024 |  | 2023 |  |  | 2024 |  | 2023 |
Components of Income (Loss) |  |  |  |  |  |  |  |  |
Core income (loss) | $ | 293 |  |  | $ | 289 |  |  |  | $ | 974 |  |  | $ | 922 |  |
Net investment gains (losses) | (7) |  |  | (31) |  |  |  | (33) |  |  | (84) |  |
Pension settlement transaction gains (losses) | (3) |  |  | — |  |  |  | (3) |  |  | — |  |
Net income (loss) | $ | 283 |  |  | $ | 258 |  |  |  | $ | 938 |  |  | $ | 838 |  |
Diluted Earnings (Loss) Per Common Share |  |  |  |  |  |  |  |  |
Core income (loss) | $ | 1.08 |  |  | $ | 1.06 |  |  |  | $ | 3.57 |  |  | $ | 3.39 |  |
Net investment gains (losses) | (0.03) |  |  | (0.11) |  |  |  | (0.12) |  |  | (0.31) |  |
Pension settlement transaction gains (losses) | (0.01) |  |  | — |  |  |  | (0.01) |  |  | — |  |
Diluted earnings (loss) per share | $ | 1.04 |  |  | $ | 0.95 |  |  |  | $ | 3.44 |  |  | $ | 3.08 |  |
Weighted Average Outstanding Common Stock and Common Stock Equivalents |  |  |  |  |  |  |  |  |
Basic | 271.3 |  |  | 271.2 |  |  |  | 271.5 |  |  | 271.2 |  |
Diluted | 272.7 |  |  | 272.3 |  |  |  | 272.7 |  |  | 272.2 |  |
Return on Equity |  |  |  |  |  |  |  |  |
Net income (loss) (1) | 11.0 |  | % | 11.9 |  | % |  | 12.1 |  | % | 13.1 |  | %
Core income (loss) (2) | 9.4 |  |  | 9.4 |  |  |  | 10.3 |  |  | 10.1 |  |

(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.
2

Selected Balance Sheet Data and Statements of Cash Flows Data

(In millions, except per share data) | September 30, 2024 |  | December 31, 2023
Total investments | $ | 48,695 |  |  | $ | 46,562 |
Reinsurance receivables, net of allowance for uncollectible receivables | 5,798 |  |  | 5,412 |
Total assets | 67,356 |  |  | 64,711 |
Insurance reserves | 45,864 |  |  | 44,196 |
Claim and claim adjustment expenses | 24,558 |  |  | 23,304 |
Unearned premiums | 7,259 |  |  | 6,933 |
Future policy benefits | 14,047 |  |  | 13,959 |
Debt | 2,972 |  |  | 3,031 |
Total liabilities | 56,598 |  |  | 54,818 |
Accumulated other comprehensive income (loss) (1) | (1,837) |  |  | (2,672) |
Total stockholders' equity | 10,758 |  |  | 9,893 |
Book value per common share | $ | 39.72 |  |  | $ | 36.52 |
Book value per common share excluding AOCI | $ | 46.50 |  |  | $ | 46.39 |
Outstanding shares of common stock (in millions of shares) | 270.8 |  |  | 270.9 |
Statutory capital and surplus - Combined Continental Casualty Companies (2) | $ | 11,327 |  |  | $ | 10,946 |

Three Months Ended September 30 | 2024 |  | 2023
Net cash flows provided (used) by operating activities | $ | 748 |  |  | $ | 828 |
Net cash flows provided (used) by investing activities | (553) |  |  | (679) |
Net cash flows provided (used) by financing activities | (120) |  |  | (18) |
Net cash flows provided (used) by operating, investing and financing activities | $ | 75 |  |  | $ | 131 |

Nine Months Ended September 30 | 2024 |  | 2023
Net cash flows provided (used) by operating activities | $ | 1,868 |  |  | $ | 1,765 |
Net cash flows provided (used) by investing activities | (762) |  |  | (1,537) |
Net cash flows provided (used) by financing activities | (998) |  |  | (218) |
Net cash flows provided (used) by operating, investing and financing activities | $ | 108 |  |  | $ | 10 |

(1) As of September 30, 2024 and December 31, 2023, AOCI included after-tax cumulative impacts of changes in discount rates used to measure long duration contracts of $(368) million and $(359) million.
(2) Statutory capital and surplus as of September 30, 2024 is preliminary.
3

Property & Casualty - Results of Operations

Periods ended September 30 | Three Months |  |  | Nine Months |
(In millions) | 2024 |  | 2023 |  | Change |  |  | 2024 |  | 2023 |  | Change |
Gross written premiums | $ | 3,595 |  |  | $ | 3,424 |  |  | 5 |  | % |  | $ | 11,409 |  |  | $ | 10,953 |  |  | 4 |  | %
Gross written premiums ex. 3 rd party captives | 2,825 |  |  | 2,595 |  |  | 9 |  |  |  | 8,964 |  |  | 8,305 |  |  | 8 |  |
Net written premiums | 2,360 |  |  | 2,178 |  |  | 8 |  |  |  | 7,424 |  |  | 6,938 |  |  | 7 |  |
Net earned premiums | 2,484 |  |  | 2,295 |  |  | 8 |  |  |  | 7,204 |  |  | 6,662 |  |  | 8 |  |
Insurance claims and policyholders' benefits | 1,667 |  |  | 1,473 |  |  |  |  |  | 4,700 |  |  | 4,228 |  |  |  |
Amortization of deferred acquisition costs | 457 |  |  | 426 |  |  |  |  |  | 1,336 |  |  | 1,208 |  |  |  |
Other insurance related expenses | 292 |  |  | 265 |  |  |  |  |  | 850 |  |  | 827 |  |  |  |
Underwriting gain (loss) | 68 |  |  | 131 |  |  | (48) |  |  |  | 318 |  |  | 399 |  |  | (20) |  |
Net investment income | 372 |  |  | 318 |  |  | 17 |  |  |  | 1,090 |  |  | 951 |  |  | 15 |  |
Non-insurance warranty revenue | 401 |  |  | 407 |  |  |  |  |  | 1,212 |  |  | 1,221 |  |  |  |
Other revenues | 6 |  |  | 8 |  |  |  |  |  | 24 |  |  | 22 |  |  |  |
Non-insurance warranty expense | 387 |  |  | 386 |  |  |  |  |  | 1,169 |  |  | 1,154 |  |  |  |
Other expenses | 13 |  |  | 30 |  |  |  |  |  | 69 |  |  | 68 |  |  |  |
Core income (loss) before income tax | 447 |  |  | 448 |  |  |  |  |  | 1,406 |  |  | 1,371 |  |  |  |
Income tax (expense) benefit on core income (loss) | (101) |  |  | (97) |  |  |  |  |  | (308) |  |  | (300) |  |  |  |
Core income (loss) | $ | 346 |  |  | $ | 351 |  |  | (1) |  | % |  | $ | 1,098 |  |  | $ | 1,071 |  |  | 3 |  | %
Other Performance Metrics |  |  |  |  |  |  |  |  |  |  |  |  |
Underwriting gain (loss) | $ | 68 |  |  | $ | 131 |  |  | (48) |  | % |  | $ | 318 |  |  | $ | 399 |  |  | (20) |  | %
Effect of catastrophe losses | 143 |  |  | 94 |  |  |  |  |  | 313 |  |  | 214 |  |  |  |
Effect of (favorable) unfavorable development-related items | (2) |  |  | (5) |  |  |  |  |  | (13) |  |  | 4 |  |  |  |
Underlying underwriting gain (loss) | $ | 209 |  |  | $ | 220 |  |  | (5) |  | % |  | $ | 618 |  |  | $ | 617 |  |  | — |  | %
Loss & LAE ratio | 66.7 |  | % | 63.9 |  | % | (2.8) |  | pts |  | 64.9 |  | % | 63.1 |  | % | (1.8) |  | pts
Expense ratio | 30.2 |  |  | 30.1 |  |  | (0.1) |  |  |  | 30.3 |  |  | 30.6 |  |  | 0.3 |  |
Dividend ratio | 0.3 |  |  | 0.3 |  |  | — |  |  |  | 0.4 |  |  | 0.3 |  |  | (0.1) |  |
Combined ratio | 97.2 |  | % | 94.3 |  | % | (2.9) |  | pts |  | 95.6 |  | % | 94.0 |  | % | (1.6) |  | pts
Effect of catastrophe impacts | (5.8) |  |  | (4.1) |  |  | 1.7 |  |  |  | (4.3) |  |  | (3.2) |  |  | 1.1 |  |
Effect of development-related items | 0.2 |  |  | 0.2 |  |  | — |  |  |  | 0.2 |  |  | — |  |  | (0.2) |  |
Underlying combined ratio | 91.6 |  | % | 90.4 |  | % | (1.2) |  | pts |  | 91.5 |  | % | 90.8 |  | % | (0.7) |  | pts
Rate | 3 |  | % | 5 |  | % | (2) |  | pts |  | 4 |  | % | 5 |  | % | (1) |  | pts
Renewal premium change | 5 |  | % | 6 |  | % | (1) |  | pts |  | 5 |  | % | 7 |  | % | (2) |  | pts
Retention | 85 |  | % | 84 |  | % | 1 |  | pts |  | 85 |  | % | 85 |  | % | — |  | pts
New business | $ | 547 |  |  | $ | 475 |  |  | 15 |  | % |  | $ | 1,671 |  |  | $ | 1,533 |  |  | 9 |  | %

4

Specialty - Results of Operations

Periods ended September 30 | Three Months |  |  | Nine Months |
(In millions) | 2024 |  | 2023 |  | Change |  |  | 2024 |  | 2023 |  | Change |
Gross written premiums | $ | 1,743 |  |  | $ | 1,775 |  |  | (2) |  | % |  | $ | 5,153 |  |  | $ | 5,324 |  |  | (3) |  | %
Gross written premiums ex. 3 rd party captives | 982 |  |  | 949 |  |  | 3 |  |  |  | 2,846 |  |  | 2,796 |  |  | 2 |  |
Net written premiums | 862 |  |  | 825 |  |  | 4 |  |  |  | 2,511 |  |  | 2,438 |  |  | 3 |  |
Net earned premiums | 848 |  |  | 829 |  |  | 2 |  |  |  | 2,493 |  |  | 2,438 |  |  | 2 |  |
Insurance claims and policyholders' benefits | 511 |  |  | 482 |  |  |  |  |  | 1,485 |  |  | 1,424 |  |  |  |
Amortization of deferred acquisition costs | 188 |  |  | 175 |  |  |  |  |  | 546 |  |  | 508 |  |  |  |
Other insurance related expenses | 90 |  |  | 89 |  |  |  |  |  | 267 |  |  | 269 |  |  |  |
Underwriting gain (loss) | 59 |  |  | 83 |  |  | (29) |  |  |  | 195 |  |  | 237 |  |  | (18) |  |
Net investment income | 157 |  |  | 136 |  |  | 15 |  |  |  | 461 |  |  | 407 |  |  | 13 |  |
Non-insurance warranty revenue | 401 |  |  | 407 |  |  |  |  |  | 1,212 |  |  | 1,221 |  |  |  |
Other revenues | 1 |  |  | — |  |  |  |  |  | 1 |  |  | — |  |  |  |
Non-insurance warranty expense | 387 |  |  | 386 |  |  |  |  |  | 1,169 |  |  | 1,154 |  |  |  |
Other expenses | 13 |  |  | 13 |  |  |  |  |  | 41 |  |  | 39 |  |  |  |
Core income (loss) before income tax | 218 |  |  | 227 |  |  |  |  |  | 659 |  |  | 672 |  |  |  |
Income tax (expense) benefit on core income (loss) | (47) |  |  | (49) |  |  |  |  |  | (142) |  |  | (146) |  |  |  |
Core income (loss) | $ | 171 |  |  | $ | 178 |  |  | (4) |  | % |  | $ | 517 |  |  | $ | 526 |  |  | (2) |  | %
Other Performance Metrics |  |  |  |  |  |  |  |  |  |  |  |  |
Underwriting gain (loss) | $ | 59 |  |  | $ | 83 |  |  | (29) |  | % |  | $ | 195 |  |  | $ | 237 |  |  | (18) |  | %
Effect of catastrophe losses | — |  |  | — |  |  |  |  |  | — |  |  | — |  |  |  |
Effect of (favorable) unfavorable development-related items | — |  |  | (5) |  |  |  |  |  | (8) |  |  | (7) |  |  |  |
Underlying underwriting gain (loss) | $ | 59 |  |  | $ | 78 |  |  | (24) |  | % |  | $ | 187 |  |  | $ | 230 |  |  | (19) |  | %
Loss & LAE ratio | 60.1 |  | % | 58.0 |  | % | (2.1) |  | pts |  | 59.3 |  | % | 58.2 |  | % | (1.1) |  | pts
Expense ratio | 32.7 |  |  | 31.8 |  |  | (0.9) |  |  |  | 32.5 |  |  | 31.9 |  |  | (0.6) |  |
Dividend ratio | 0.2 |  |  | 0.3 |  |  | 0.1 |  |  |  | 0.3 |  |  | 0.2 |  |  | (0.1) |  |
Combined ratio | 93.0 |  | % | 90.1 |  | % | (2.9) |  | pts |  | 92.1 |  | % | 90.3 |  | % | (1.8) |  | pts
Effect of catastrophe impacts | — |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |
Effect of development-related items | — |  |  | 0.6 |  |  | 0.6 |  |  |  | 0.3 |  |  | 0.3 |  |  | — |  |
Underlying combined ratio | 93.0 |  | % | 90.7 |  | % | (2.3) |  | pts |  | 92.4 |  | % | 90.6 |  | % | (1.8) |  | pts
Rate | — |  | % | 1 |  | % | (1) |  | pts |  | 1 |  | % | 1 |  | % | — |  | pts
Renewal premium change | 2 |  | % | 2 |  | % | — |  | pts |  | 2 |  | % | 2 |  | % | — |  | pts
Retention | 89 |  | % | 87 |  | % | 2 |  | pts |  | 89 |  | % | 88 |  | % | 1 |  | pts
New business | $ | 129 |  |  | $ | 121 |  |  | 7 |  | % |  | $ | 341 |  |  | $ | 349 |  |  | (2) |  | %

5

Commercial - Results of Operations

Periods ended September 30 | Three Months |  |  | Nine Months |
(In millions) | 2024 |  | 2023 |  | Change |  |  | 2024 |  | 2023 |  | Change |
Gross written premiums | $ | 1,547 |  |  | $ | 1,343 |  |  | 15 |  | % |  | $ | 5,160 |  |  | $ | 4,504 |  |  | 15 |  | %
Gross written premiums ex. 3 rd party captives | 1,538 |  |  | 1,340 |  |  | 15 |  |  |  | 5,022 |  |  | 4,384 |  |  | 15 |  |
Net written premiums | 1,221 |  |  | 1,071 |  |  | 14 |  |  |  | 4,017 |  |  | 3,588 |  |  | 12 |  |
Net earned premiums | 1,325 |  |  | 1,170 |  |  | 13 |  |  |  | 3,774 |  |  | 3,336 |  |  | 13 |  |
Insurance claims and policyholders' benefits | 961 |  |  | 813 |  |  |  |  |  | 2,647 |  |  | 2,252 |  |  |  |
Amortization of deferred acquisition costs | 209 |  |  | 188 |  |  |  |  |  | 608 |  |  | 532 |  |  |  |
Other insurance related expenses | 158 |  |  | 156 |  |  |  |  |  | 454 |  |  | 456 |  |  |  |
Underwriting gain (loss) | (3) |  |  | 13 |  |  | (123) |  |  |  | 65 |  |  | 96 |  |  | (32) |  |
Net investment income | 183 |  |  | 156 |  |  | 17 |  |  |  | 534 |  |  | 470 |  |  | 14 |  |
Other revenues | 5 |  |  | 9 |  |  |  |  |  | 23 |  |  | 22 |  |  |  |
Other expenses | 8 |  |  | 11 |  |  |  |  |  | 33 |  |  | 27 |  |  |  |
Core income (loss) before income tax | 177 |  |  | 167 |  |  |  |  |  | 589 |  |  | 561 |  |  |  |
Income tax (expense) benefit on core income (loss) | (38) |  |  | (34) |  |  |  |  |  | (125) |  |  | (118) |  |  |  |
Core income (loss) | $ | 139 |  |  | $ | 133 |  |  | 5 |  | % |  | $ | 464 |  |  | $ | 443 |  |  | 5 |  | %
Other Performance Metrics |  |  |  |  |  |  |  |  |  |  |  |  |
Underwriting gain (loss) | $ | (3) |  |  | $ | 13 |  |  | (123) |  | % |  | $ | 65 |  |  | $ | 96 |  |  | (32) |  | %
Effect of catastrophe losses | 127 |  |  | 87 |  |  |  |  |  | 285 |  |  | 190 |  |  |  |
Effect of (favorable) unfavorable development-related items | — |  |  | — |  |  |  |  |  | — |  |  | (4) |  |  |  |
Underlying underwriting gain (loss) | $ | 124 |  |  | $ | 100 |  |  | 24 |  | % |  | $ | 350 |  |  | $ | 282 |  |  | 24 |  | %
Loss & LAE ratio | 72.0 |  | % | 68.9 |  | % | (3.1) |  | pts |  | 69.7 |  | % | 67.0 |  | % | (2.7) |  | pts
Expense ratio | 27.7 |  |  | 29.5 |  |  | 1.8 |  |  |  | 28.1 |  |  | 29.6 |  |  | 1.5 |  |
Dividend ratio | 0.5 |  |  | 0.5 |  |  | — |  |  |  | 0.5 |  |  | 0.5 |  |  | — |  |
Combined ratio | 100.2 |  | % | 98.9 |  | % | (1.3) |  | pts |  | 98.3 |  | % | 97.1 |  | % | (1.2) |  | pts
Effect of catastrophe impacts | (9.6) |  |  | (7.4) |  |  | 2.2 |  |  |  | (7.5) |  |  | (5.7) |  |  | 1.8 |  |
Effect of development-related items | 0.1 |  |  | — |  |  | (0.1) |  |  |  | — |  |  | 0.2 |  |  | 0.2 |  |
Underlying combined ratio | 90.7 |  | % | 91.5 |  | % | 0.8 |  | pts |  | 90.8 |  | % | 91.6 |  | % | 0.8 |  | pts
Rate | 6 |  | % | 8 |  | % | (2) |  | pts |  | 6 |  | % | 8 |  | % | (2) |  | pts
Renewal premium change | 8 |  | % | 9 |  | % | (1) |  | pts |  | 8 |  | % | 10 |  | % | (2) |  | pts
Retention | 84 |  | % | 83 |  | % | 1 |  | pts |  | 84 |  | % | 85 |  | % | (1) |  | pts
New business | $ | 345 |  |  | $ | 292 |  |  | 18 |  | % |  | $ | 1,117 |  |  | $ | 945 |  |  | 18 |  | %

6

International - Results of Operations

Periods ended September 30 | Three Months |  |  | Nine Months |
(In millions) | 2024 |  | 2023 |  | Change |  |  | 2024 |  | 2023 |  | Change |
Gross written premiums | $ | 305 |  |  | $ | 306 |  |  | — |  | % |  | $ | 1,096 |  |  | $ | 1,125 |  |  | (3) |  | %
Net written premiums | 277 |  |  | 282 |  |  | (2) |  |  |  | 896 |  |  | 912 |  |  | (2) |  |
Net earned premiums | 311 |  |  | 296 |  |  | 5 |  |  |  | 937 |  |  | 888 |  |  | 6 |  |
Insurance claims and policyholders' benefits | 195 |  |  | 178 |  |  |  |  |  | 568 |  |  | 552 |  |  |  |
Amortization of deferred acquisition costs | 60 |  |  | 63 |  |  |  |  |  | 182 |  |  | 168 |  |  |  |
Other insurance related expenses | 44 |  |  | 20 |  |  |  |  |  | 129 |  |  | 102 |  |  |  |
Underwriting gain (loss) | 12 |  |  | 35 |  |  | (66) |  |  |  | 58 |  |  | 66 |  |  | (12) |  |
Net investment income | 32 |  |  | 26 |  |  | 23 |  |  |  | 95 |  |  | 74 |  |  | 28 |  |
Other revenues | — |  |  | (1) |  |  |  |  |  | — |  |  | — |  |  |  |
Other expenses | (8) |  |  | 6 |  |  |  |  |  | (5) |  |  | 2 |  |  |  |
Core income (loss) before income tax | 52 |  |  | 54 |  |  |  |  |  | 158 |  |  | 138 |  |  |  |
Income tax (expense) benefit on core income (loss) | (16) |  |  | (14) |  |  |  |  |  | (41) |  |  | (36) |  |  |  |
Core income (loss) | $ | 36 |  |  | $ | 40 |  |  | (10) |  | % |  | $ | 117 |  |  | $ | 102 |  |  | 15 |  | %
Other Performance Metrics |  |  |  |  |  |  |  |  |  |  |  |  |
Underwriting gain (loss) | $ | 12 |  |  | $ | 35 |  |  | (66) |  | % |  | $ | 58 |  |  | $ | 66 |  |  | (12) |  | %
Effect of catastrophe losses | 16 |  |  | 7 |  |  |  |  |  | 28 |  |  | 24 |  |  |  |
Effect of (favorable) unfavorable development-related items | (2) |  |  | — |  |  |  |  |  | (5) |  |  | 15 |  |  |  |
Underlying underwriting gain (loss) | $ | 26 |  |  | $ | 42 |  |  | (38) |  | % |  | $ | 81 |  |  | $ | 105 |  |  | (23) |  | %
Loss & LAE ratio | 62.5 |  | % | 60.2 |  | % | (2.3) |  | pts |  | 60.6 |  | % | 62.2 |  | % | 1.6 |  | pts
Expense ratio | 33.6 |  |  | 28.1 |  |  | (5.5) |  |  |  | 33.1 |  |  | 30.3 |  |  | (2.8) |  |
Dividend ratio | — |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |
Combined ratio | 96.1 |  | % | 88.3 |  | % | (7.8) |  | pts |  | 93.7 |  | % | 92.5 |  | % | (1.2) |  | pts
Effect of catastrophe impacts | (5.1) |  |  | (2.3) |  |  | 2.8 |  |  |  | (3.0) |  |  | (2.7) |  |  | 0.3 |  |
Effect of development-related items | 0.7 |  |  | — |  |  | (0.7) |  |  |  | 0.5 |  |  | (1.7) |  |  | (2.2) |  |
Underlying combined ratio | 91.7 |  | % | 86.0 |  | % | (5.7) |  | pts |  | 91.2 |  | % | 88.1 |  | % | (3.1) |  | pts
Rate | (2) |  | % | 2 |  | % | (4) |  | pts |  | — |  | % | 4 |  | % | (4) |  | pts
Renewal premium change | 1 |  | % | 7 |  | % | (6) |  | pts |  | 2 |  | % | 7 |  | % | (5) |  | pts
Retention | 82 |  | % | 84 |  | % | (2) |  | pts |  | 81 |  | % | 83 |  | % | (2) |  | pts
New business | $ | 73 |  |  | $ | 62 |  |  | 18 |  | % |  | $ | 213 |  |  | $ | 239 |  |  | (11) |  | %

7

Life & Group - Results of Operations

Periods ended September 30 | Three Months |  |  | Nine Months
(In millions) | 2024 |  | 2023 |  |  | 2024 |  | 2023
Net earned premiums | $ | 110 |  |  | $ | 112 |  |  |  | $ | 329 |  |  | $ | 340 |
Net investment income | 240 |  |  | 216 |  |  |  | 710 |  |  | 659 |
Other revenues | — |  |  | — |  |  |  | — |  |  | — |
Total operating revenues | 350 |  |  | 328 |  |  |  | 1,039 |  |  | 999 |
Insurance claims and policyholders' benefits | 336 |  |  | 343 |  |  |  | 973 |  |  | 998 |
Other insurance related expenses | 30 |  |  | 29 |  |  |  | 88 |  |  | 89 |
Other expenses | 1 |  |  | (1) |  |  |  | 2 |  |  | — |
Total claims, benefits and expenses | 367 |  |  | 371 |  |  |  | 1,063 |  |  | 1,087 |
Core income (loss) before income tax | (17) |  |  | (43) |  |  |  | (24) |  |  | (88) |
Income tax (expense) benefit on core income (loss) | 8 |  |  | 14 |  |  |  | 19 |  |  | 36 |
Core income (loss) | $ | (9) |  |  | $ | (29) |  |  |  | $ | (5) |  |  | $ | (52) |

8

Corporate & Other - Results of Operations

Periods ended September 30 | Three Months |  |  | Nine Months
(In millions) | 2024 |  | 2023 |  |  | 2024 |  | 2023
Net earned premiums | $ | (1) |  |  | $ | (1) |  |  |  | $ | (1) |  |  | $ | (1) |
Net investment income | 14 |  |  | 19 |  |  |  | 53 |  |  | 43 |
Other revenues | 2 |  |  | — |  |  |  | 2 |  |  | — |
Total operating revenues | 15 |  |  | 18 |  |  |  | 54 |  |  | 42 |
Insurance claims and policyholders' benefits | 16 |  |  | 10 |  |  |  | 35 |  |  | 32 |
Other insurance related expenses | (1) |  |  | — |  |  |  | (1) |  |  | 1 |
Interest expense | 32 |  |  | 35 |  |  |  | 101 |  |  | 93 |
Other expenses | 23 |  |  | 14 |  |  |  | 65 |  |  | 36 |
Total claims, benefits and expenses | 70 |  |  | 59 |  |  |  | 200 |  |  | 162 |
Core income (loss) before income tax | (55) |  |  | (41) |  |  |  | (146) |  |  | (120) |
Income tax (expense) benefit on core income (loss) | 11 |  |  | 8 |  |  |  | 27 |  |  | 23 |
Core income (loss) | $ | (44) |  |  | $ | (33) |  |  |  | $ | (119) |  |  | $ | (97) |

9

Investment Summary - Consolidated

| September 30, 2024 |  | June 30, 2024 |  | December 31, 2023 |
(In millions) | Carrying Value |  | Net Unrealized Gains (Losses) |  | Carrying Value |  | Net Unrealized Gains (Losses) |  | Carrying Value |  | Net Unrealized Gains (Losses) |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |
Corporate and other bonds | $ | 25,792 |  |  | $ | (74) |  |  | $ | 24,372 |  |  | $ | (1,095) |  |  | $ | 24,268 |  |  | $ | (748) |  |
States, municipalities and political subdivisions: |  |  |  |  |  |  |  |  |  |  |  |
Tax-exempt | 3,333 |  | 65 |  |  | 3,333 |  | (33) |  |  | 3,722 |  | 88 |  |
Taxable | 3,815 |  | (323) |  |  | 3,696 |  | (498) |  |  | 3,670 |  | (409) |  |
Total states, municipalities and political subdivisions | 7,148 |  |  | (258) |  |  | 7,029 |  |  | (531) |  |  | 7,392 |  |  | (321) |  |
Asset-backed: |  |  |  |  |  |  |  |  |  |  |  |
RMBS | 3,354 |  |  | (330) |  |  | 3,115 |  |  | (487) |  |  | 3,002 |  |  | (409) |  |
CMBS | 1,741 |  |  | (126) |  |  | 1,611 |  |  | (179) |  |  | 1,631 |  |  | (223) |  |
Other ABS | 3,585 |  |  | (146) |  |  | 3,379 |  |  | (243) |  |  | 3,268 |  |  | (243) |  |
Total asset-backed | 8,680 |  |  | (602) |  |  | 8,105 |  |  | (909) |  |  | 7,901 |  |  | (875) |  |
U.S. Treasury and obligations of government-sponsored enterprises | 222 |  |  | (2) |  |  | 191 |  |  | (2) |  |  | 151 |  |  | (1) |  |
Foreign government | 737 |  |  | (18) |  |  | 706 |  |  | (36) |  |  | 713 |  |  | (28) |  |
Redeemable preferred stock | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
Total fixed maturity securities | 42,579 |  |  | (954) |  |  | 40,403 |  |  | (2,573) |  |  | 40,425 |  |  | (1,973) |  |
Equities: |  |  |  |  |  |  |  |  |  |  |  |
Common stock | 183 |  |  | — |  |  | 180 |  |  | — |  |  | 191 |  |  | — |  |
Non-redeemable preferred stock | 485 |  |  | — |  |  | 489 |  |  | — |  |  | 492 |  |  | — |  |
Total equities | 668 |  |  | — |  |  | 669 |  |  | — |  |  | 683 |  |  | — |  |
Limited partnership investments: |  |  |  |  |  |  |  |  |  |  |  |
Hedge funds | 356 |  |  | — |  |  | 347 |  | — |  |  | 332 |  |  | — |  |
Private equity funds | 2,106 |  |  | — |  |  | 2,020 |  | — |  |  | 1,842 |  |  | — |  |
Total limited partnership investments | 2,462 |  |  | — |  |  | 2,367 |  |  | — |  |  | 2,174 |  |  | — |  |
Other invested assets | 83 |  |  | — |  |  | 73 |  |  | — |  |  | 80 |  |  | — |  |
Mortgage loans | 1,003 |  |  | — |  |  | 986 |  |  | — |  |  | 1,035 |  |  | — |  |
Short-term investments | 1,900 |  |  | — |  |  | 1,747 |  |  | — |  |  | 2,165 |  |  | 1 |  |
Total investments | $ | 48,695 |  |  | $ | (954) |  |  | $ | 46,245 |  |  | $ | (2,573) |  |  | $ | 46,562 |  |  | $ | (1,972) |  |
Net receivable/(payable) on investment activity | $ | (93) |  |  |  |  | $ | (6) |  |  |  |  | $ | 36 |  |  |  |
Effective duration (in years) | 6.4 |  |  |  |  | 6.4 |  |  |  |  | 6.5 |  |  |  |
Weighted average rating (1) | A |  |  |  | A |  |  |  | A |  |  |

RMBS - Residential mortgage-backed securities
CMBS - Commercial mortgage-backed securities
Other ABS - Other asset-backed securities
(1) Obligations of the U.S. Government, U.S. Government agencies and U.S. Government-sponsored enterprises were classified as AAA for purposes of calculating the weighted average rating.
10

Investment Summary - Property & Casualty and Corporate & Other

| September 30, 2024 |  | June 30, 2024 |  | December 31, 2023
(In millions) | Carrying Value |  | Net Unrealized Gains (Losses) |  | Carrying Value |  | Net Unrealized Gains (Losses) |  | Carrying Value |  | Net Unrealized Gains (Losses)
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |
Corporate and other bonds | $ | 15,158 |  |  | $ | (333) |  |  | $ | 14,311 |  |  | $ | (779) |  |  | $ | 14,424 |  |  | $ | (756) |
States, municipalities and political subdivisions: |  |  |  |  |  |  |  |  |  |  |
Tax-exempt | 1,027 |  | (157) |  |  | 1,008 |  | (190) |  |  | 1,160 |  | (159) |
Taxable | 2,240 |  | (329) |  |  | 2,133 |  | (428) |  |  | 2,076 |  | (399) |
Total states, municipalities and political subdivisions | 3,267 |  |  | (486) |  |  | 3,141 |  |  | (618) |  |  | 3,236 |  |  | (558) |
Asset-backed: |  |  |  |  |  |  |  |  |  |  |
RMBS | 3,352 |  |  | (330) |  |  | 3,113 |  |  | (487) |  |  | 3,000 |  |  | (409) |
CMBS | 1,718 |  |  | (124) |  |  | 1,588 |  |  | (177) |  |  | 1,601 |  |  | (221) |
Other ABS | 2,983 |  |  | (78) |  |  | 2,813 |  |  | (140) |  |  | 2,676 |  |  | (170) |
Total asset-backed | 8,053 |  |  | (532) |  |  | 7,514 |  |  | (804) |  |  | 7,277 |  |  | (800) |
U.S. Treasury and obligations of government-sponsored enterprises | 213 |  |  | (2) |  |  | 191 |  |  | (2) |  |  | 150 |  |  | (1) |
Foreign government | 688 |  |  | (11) |  |  | 660 |  |  | (26) |  |  | 685 |  |  | (20) |
Redeemable preferred stock | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total fixed maturity securities | 27,379 |  |  | (1,364) |  |  | 25,817 |  |  | (2,229) |  |  | 25,772 |  |  | (2,135) |
Equities: |  |  |  |  |  |  |  |  |  |  |
Common stock | 183 |  |  | — |  |  | 180 |  |  | — |  |  | 191 |  |  | — |
Non-redeemable preferred stock | 99 |  |  | — |  |  | 82 |  |  | — |  |  | 82 |  |  | — |
Total equities | 282 |  |  | — |  |  | 262 |  |  | — |  |  | 273 |  |  | — |
Limited partnership investments: |  |  |  |  |  |  |  |  |  |  |
Hedge funds | 272 |  |  | — |  |  | 265 |  | — |  |  | 184 |  |  | — |
Private equity funds | 1,611 |  |  | — |  |  | 1,545 |  | — |  |  | 1,019 |  |  | — |
Total limited partnership investments | 1,883 |  |  | — |  |  | 1,810 |  |  | — |  |  | 1,203 |  |  | — |
Other invested assets | 83 |  |  | — |  |  | 73 |  |  | — |  |  | 80 |  |  | — |
Mortgage loans | 814 |  |  | — |  |  | 796 |  |  | — |  |  | 842 |  |  | — |
Short-term investments | 1,739 |  |  | — |  |  | 1,698 |  |  | — |  |  | 2,094 |  |  | 1 |
Total investments | $ | 32,180 |  |  | $ | (1,364) |  |  | $ | 30,456 |  |  | $ | (2,229) |  |  | $ | 30,264 |  |  | $ | (2,134) |
Net receivable/(payable) on investment activity | $ | (99) |  |  |  |  | $ | (19) |  |  |  |  | $ | 33 |  |  |
Effective duration (in years) | 4.4 |  |  |  | 4.4 |  |  |  | 4.5 |  |
Weighted average rating (1) | A |  |  |  | A |  |  |  | A |  |

(1) Obligations of the U.S. Government, U.S. Government agencies and U.S. Government-sponsored enterprises were classified as AAA for purposes of calculating the weighted average rating.
11

Investment Summary - Life & Group

| September 30, 2024 |  | June 30, 2024 |  | December 31, 2023
(In millions) | Carrying Value |  | Net Unrealized Gains (Losses) |  | Carrying Value |  | Net Unrealized Gains (Losses) |  | Carrying Value |  | Net Unrealized Gains (Losses)
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |
Corporate and other bonds | $ | 10,634 |  |  | $ | 259 |  |  | $ | 10,061 |  |  | $ | (316) |  |  | $ | 9,844 |  |  | $ | 8 |
States, municipalities and political subdivisions: |  |  |  |  |  |  |  |  |  |  |
Tax-exempt | 2,306 |  | 222 |  | 2,325 |  | 157 |  |  | 2,562 |  | 247
Taxable | 1,575 |  | 6 |  |  | 1,563 |  | (70) |  |  | 1,594 |  | (10) |
Total states, municipalities and political subdivisions | 3,881 |  |  | 228 |  |  | 3,888 |  |  | 87 |  |  | 4,156 |  |  | 237 |
Asset-backed: |  |  |  |  |  |  |  |  |  |  |
RMBS | 2 |  |  | — |  |  | 2 |  |  | — |  |  | 2 |  |  | — |
CMBS | 23 |  |  | (2) |  |  | 23 |  |  | (2) |  |  | 30 |  |  | (2) |
Other ABS | 602 |  |  | (68) |  |  | 566 |  |  | (103) |  |  | 592 |  |  | (73) |
Total asset-backed | 627 |  |  | (70) |  |  | 591 |  |  | (105) |  |  | 624 |  |  | (75) |
U.S. Treasury and obligations of government-sponsored enterprises | 9 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |
Foreign government | 49 |  |  | (7) |  |  | 46 |  |  | (10) |  |  | 28 |  |  | (8) |
Redeemable preferred stock | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total fixed maturity securities | 15,200 |  |  | 410 |  |  | 14,586 |  |  | (344) |  |  | 14,653 |  |  | 162 |
Equities: |  |  |  |  |  |  |  |  |  |  |
Common stock | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-redeemable preferred stock | 386 |  |  | — |  |  | 407 |  |  | — |  |  | 410 |  |  | — |
Total equities | 386 |  |  | — |  |  | 407 |  |  | — |  |  | 410 |  |  | — |
Limited partnership investments: |  |  |  |  |  |  |  |  |  |  |
Hedge funds | 84 |  |  | — |  |  | 82 |  | — |  |  | 148 |  |  | — |
Private equity funds | 495 |  |  | — |  |  | 475 |  | — |  |  | 823 |  |  | — |
Total limited partnership investments | 579 |  |  | — |  |  | 557 |  |  | — |  |  | 971 |  |  | — |
Other invested assets | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Mortgage loans | 189 |  |  | — |  |  | 190 |  |  | — |  |  | 193 |  |  | — |
Short-term investments | 161 |  |  | — |  |  | 49 |  |  | — |  |  | 71 |  |  | — |
Total investments | $ | 16,515 |  |  | $ | 410 |  |  | $ | 15,789 |  |  | $ | (344) |  |  | $ | 16,298 |  |  | $ | 162 |
Net receivable/(payable) on investment activity | $ | 6 |  |  |  |  | $ | 13 |  |  |  |  | $ | 3 |  |  |
Effective duration (in years) | 10.1 |  |  |  | 9.9 |  |  |  | 10.2 |  |
Weighted average rating (1) | A- |  |  |  | A- |  |  |  | A- |  |

(1) Obligations of the U.S. Government, U.S. Government agencies and U.S. Government-sponsored enterprises were classified as AAA for purposes of calculating the weighted average rating.
12

Investments - Fixed Maturity Securities by Credit Rating

September 30, 2024 | 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 | $ | — |  |  | $ | — |  |  | $ | 29 |  |  | $ | — |  |  | $ | 745 |  |  | $ | (3) |  |  | $ | 7,941 |  |  | $ | 24 |  |  | $ | 15,454 |  |  | $ | (66) |  |  | $ | 1,623 |  |  | $ | (29) |  |  | $ | 25,792 |  |  | $ | (74) |
States, municipalities and political subdivisions | — |  |  | — |  |  | 1,126 |  |  | (17) |  |  | 4,503 |  |  | (195) |  |  | 1,229 |  |  | (5) |  |  | 270 |  |  | (36) |  |  | 20 |  |  | (5) |  |  | 7,148 |  |  | (258) |
Asset-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
RMBS | 2,843 |  |  | (240) |  |  | 494 |  |  | (93) |  |  | 8 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9 |  |  | 3 |  |  | 3,354 |  |  | (330) |
CMBS | — |  |  | — |  |  | 700 |  |  | (7) |  |  | 628 |  |  | (52) |  |  | 189 |  |  | (19) |  |  | 183 |  |  | (21) |  |  | 41 |  |  | (27) |  |  | 1,741 |  |  | (126) |
Other ABS | — |  |  | — |  |  | 480 |  |  | — |  |  | 270 |  |  | (47) |  |  | 1,346 |  |  | (37) |  |  | 1,305 |  |  | (49) |  |  | 184 |  |  | (13) |  |  | 3,585 |  |  | (146) |
Total asset-backed | 2,843 |  |  | (240) |  |  | 1,674 |  |  | (100) |  |  | 906 |  |  | (99) |  |  | 1,535 |  |  | (56) |  |  | 1,488 |  |  | (70) |  |  | 234 |  |  | (37) |  |  | 8,680 |  |  | (602) |
U.S. Treasury and obligations of government-sponsored enterprises | 222 |  |  | (2) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 222 |  |  | (2) |
Foreign government | — |  |  | — |  |  | 214 |  |  | (2) |  |  | 390 |  |  | (6) |  |  | 40 |  |  | (5) |  |  | 93 |  |  | (5) |  |  | — |  |  | — |  |  | 737 |  |  | (18) |
Redeemable preferred stock | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total fixed maturity securities | $ | 3,065 |  |  | $ | (242) |  |  | $ | 3,043 |  |  | $ | (119) |  |  | $ | 6,544 |  |  | $ | (303) |  |  | $ | 10,745 |  |  | $ | (42) |  |  | $ | 17,305 |  |  | $ | (177) |  |  | $ | 1,877 |  |  | $ | (71) |  |  | $ | 42,579 |  |  | $ | (954) |
Percentage of total fixed maturity securities | 7 | % |  |  |  | 7 | % |  |  |  | 15 | % |  |  |  | 25 | % |  |  |  | 41 | % |  |  |  | 5 | % |  |  |  | 100 | % |  |

13

Components of Net Investment Income

Periods ended September 30 | Consolidated |
| Three Months |  | Nine Months |
(In millions) | 2024 |  | 2023 |  | 2024 |  | 2023 |
Taxable fixed income securities | $ | 490 |  |  | $ | 457 |  |  | $ | 1,446 |  |  | $ | 1,331 |  |
Tax-exempt fixed income securities | 35 |  |  | 43 |  |  | 109 |  |  | 138 |  |
Total fixed income securities | 525 |  |  | 500 |  |  | 1,555 |  |  | 1,469 |  |
Common stock | 13 |  | — |  |  | 31 |  | 16 |
Limited partnerships - hedge funds | 13 |  | (2) |  |  | 35 |  | 19 |
Limited partnerships - private equity funds | 54 |  | 30 |  | 160 |  | 89 |
Total limited partnership and common stock investments | 80 |  |  | 28 |  |  | 226 |  |  | 124 |  |
Other, net of investment expense | 21 |  |  | 25 |  |  | 72 |  |  | 60 |  |
Net investment income | $ | 626 |  |  | $ | 553 |  |  | $ | 1,853 |  |  | $ | 1,653 |  |
Effective income yield for fixed income securities portfolio | 4.8 |  | % | 4.7 |  | % | 4.8 |  | % | 4.6 |  | %
Limited partnership and common stock return for the period | 3.1 |  |  | 1.3 |  |  | 9.4 |  |  | 5.8 |  |

| Property & Casualty and Corporate & Other |
Periods ended September 30 |
| Three Months |  | Nine Months |
(In millions) | 2024 |  | 2023 |  | 2024 |  | 2023 |
Taxable fixed income securities | $ | 301 |  |  | $ | 283 |  |  | $ | 893 |  |  | $ | 816 |  |
Tax-exempt fixed income securities | 8 |  |  | 10 |  |  | 27 |  |  | 32 |  |
Total fixed income securities | 309 |  |  | 293 |  |  | 920 |  |  | 848 |  |
Common stock | 13 |  | — |  |  | 31 |  | 16 |
Limited partnerships - hedge funds | 10 |  | — |  |  | 22 |  | 11 |
Limited partnerships - private equity funds | 30 |  | 16 |  |  | 89 |  | 49 |
Total limited partnership and common stock investments | 53 |  |  | 16 |  |  | 142 |  |  | 76 |  |
Other, net of investment expense | 24 |  |  | 28 |  |  | 81 |  |  | 70 |  |
Net investment income | $ | 386 |  |  | $ | 337 |  |  | $ | 1,143 |  |  | $ | 994 |  |
Effective income yield for fixed income securities portfolio | 4.3 |  | % | 4.2 |  | % | 4.3 |  | % | 4.1 |  | %

Periods ended September 30 | Life & Group |
| Three Months |  | Nine Months |
(In millions) | 2024 |  | 2023 |  | 2024 |  | 2023 |
Taxable fixed income securities | $ | 189 |  |  | $ | 174 |  |  | $ | 553 |  |  | $ | 515 |  |
Tax-exempt fixed income securities | 27 |  |  | 33 |  |  | 82 |  |  | 106 |  |
Total fixed income securities | 216 |  |  | 207 |  |  | 635 |  |  | 621 |  |
Common stock | — |  |  | — |  |  | — |  |  | — |  |
Limited partnerships - hedge funds | 3 |  | (2) |  |  | 13 |  | 8 |  |
Limited partnerships - private equity funds | 24 |  | 14 |  | 71 |  | 40 |
Total limited partnership and common stock investments | 27 |  |  | 12 |  |  | 84 |  |  | 48 |  |
Other, net of investment expense | (3) |  |  | (3) |  |  | (9) |  |  | (10) |  |
Net investment income | $ | 240 |  |  | $ | 216 |  |  | $ | 710 |  |  | $ | 659 |  |
Effective income yield for fixed income securities portfolio | 5.7 |  | % | 5.6 |  | % | 5.6 |  | % | 5.6 |  | %

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Net Investment Gains (Losses)

Periods ended September 30 | Consolidated
| Three Months |  | Nine Months
(In millions) | 2024 |  | 2023 |  | 2024 |  | 2023
Fixed maturity securities: |  |  |  |  |  |  |
Corporate and other bonds | $ | (17) |  |  | $ | (11) |  |  | $ | (38) |  |  | $ | (46) |
States, municipalities and political subdivisions | (1) |  |  | (4) |  |  | (3) |  |  | 3 |
Asset-backed | (4) |  |  | (22) |  |  | (25) |  |  | (43) |
Total fixed maturity securities | (22) |  |  | (37) |  |  | (66) |  |  | (86) |
Non-redeemable preferred stock | 13 |  |  | 2 |  |  | 25 |  |  | (9) |
Derivatives, short-term and other | (1) |  |  | 2 |  |  | (1) |  |  | 1 |
Mortgage loans | — |  |  | (5) |  |  | — |  |  | (11) |
Net investment gains (losses) | (10) |  |  | (38) |  |  | (42) |  |  | (105) |
Income tax benefit (expense) on net investment gains (losses) | 3 |  |  | 7 |  |  | 9 |  |  | 21 |
Net investment gains (losses), after tax | $ | (7) |  |  | $ | (31) |  |  | $ | (33) |  |  | $ | (84) |

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Claim & Claim Adjustment Expense Reserve Rollforward

Three months ended September 30, 2024 (In millions) | Specialty |  | Commercial |  | International |  | P&C Operations |  | Life & Group |  | Corporate & Other |  | Total Operations
Claim & claim adjustment expense reserves, beginning of period |  |  |  |  |  |  |  |  |  |  |  |  |
Gross | $ | 7,319 |  |  | $ | 10,617 |  |  | $ | 2,783 |  |  | $ | 20,719 |  |  | $ | 651 |  |  | $ | 2,604 |  |  | $ | 23,974 |
Ceded | 1,407 |  |  | 1,184 |  |  | 443 |  |  | 3,034 |  |  | 90 |  |  | 2,234 |  |  | 5,358 |
Net | 5,912 |  |  | 9,433 |  |  | 2,340 |  |  | 17,685 |  |  | 561 |  |  | 370 |  |  | 18,616 |
Net incurred claim & claim adjustment expenses | 510 |  |  | 955 |  |  | 195 |  |  | 1,660 |  |  | (2) |  |  | 26 |  |  | 1,684 |
Net claim & claim adjustment expense payments | (489) |  |  | (656) |  |  | (112) |  |  | (1,257) |  |  | (11) |  |  | (9) |  |  | (1,277) |
Foreign currency translation adjustment and other | — |  |  | — |  |  | 76 |  |  | 76 |  |  | 16 |  |  | 1 |  |  | 93 |
Claim & claim adjustment expense reserves, end of period |  |  |  |  |  |  |  |  |  |  |  |  |
Net | 5,933 |  |  | 9,732 |  |  | 2,499 |  |  | 18,164 |  |  | 564 |  |  | 388 |  |  | 19,116 |
Ceded | 1,395 |  |  | 1,286 |  |  | 491 |  |  | 3,172 |  |  | 86 |  |  | 2,184 |  |  | 5,442 |
Gross | $ | 7,328 |  |  | $ | 11,018 |  |  | $ | 2,990 |  |  | $ | 21,336 |  |  | $ | 650 |  |  | $ | 2,572 |  |  | $ | 24,558 |

Nine months ended September 30, 2024 (In millions) | Specialty |  | Commercial |  | International |  | P&C Operations |  | Life & Group |  | Corporate & Other |  | Total Operations
Claim & claim adjustment expense reserves, beginning of period |  |  |  |  |  |  |  |  |  |  |  |  |
Gross | $ | 7,131 |  |  | $ | 10,103 |  |  | $ | 2,709 |  |  | $ | 19,943 |  |  | $ | 675 |  |  | $ | 2,686 |  |  | $ | 23,304 |
Ceded | 1,215 |  |  | 1,082 |  |  | 433 |  |  | 2,730 |  |  | 93 |  |  | 2,318 |  |  | 5,141 |
Net | 5,916 |  |  | 9,021 |  |  | 2,276 |  |  | 17,213 |  |  | 582 |  |  | 368 |  |  | 18,163 |
Net incurred claim & claim adjustment expenses | 1,479 |  |  | 2,629 |  |  | 568 |  |  | 4,676 |  |  | 16 |  |  | 70 |  |  | 4,762 |
Net claim & claim adjustment expense payments | (1,461) |  |  | (1,919) |  |  | (381) |  |  | (3,761) |  |  | (33) |  |  | (50) |  |  | (3,844) |
Foreign currency translation adjustment and other | (1) |  |  | 1 |  |  | 36 |  |  | 36 |  |  | (1) |  |  | — |  |  | 35 |
Claim & claim adjustment expense reserves, end of period |  |  |  |  |  |  |  |  |  |  |  |  |
Net | 5,933 |  |  | 9,732 |  |  | 2,499 |  |  | 18,164 |  |  | 564 |  |  | 388 |  |  | 19,116 |
Ceded | 1,395 |  |  | 1,286 |  |  | 491 |  |  | 3,172 |  |  | 86 |  |  | 2,184 |  |  | 5,442 |
Gross | $ | 7,328 |  |  | $ | 11,018 |  |  | $ | 2,990 |  |  | $ | 21,336 |  |  | $ | 650 |  |  | $ | 2,572 |  |  | $ | 24,558 |

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Life & Group Policyholder Reserves

Three months ended September 30, 2024 (In millions) | Claim and claim adjustment expenses |  | Future policy benefits |  | Total
Beginning of Period | $ | 561 |  |  | $ | 13,211 |  |  | $ | 13,772 |
Incurred claims and policyholders' benefits (1) | (2) |  |  | 338 |  |  | 336 |
Benefit and expense payments | (11) |  |  | (291) |  |  | (302) |
Change in discount rate assumptions and other (AOCI) | 16 |  |  | 789 |  |  | 805 |
End of Period | $ | 564 |  |  | $ | 14,047 |  |  | 14,611 |

Nine months ended September 30, 2024 (In millions) | Claim and claim adjustment expenses |  | Future policy benefits |  | Total
Beginning of Period | $ | 582 |  |  | $ | 13,959 |  |  | $ | 14,541 |
Incurred claims and policyholders' benefits (1) | 16 |  |  | 959 |  |  | 975 |
Benefit and expense payments | (33) |  |  | (883) |  |  | (916) |
Change in discount rate assumptions and other (AOCI) | (1) |  |  | 12 |  |  | 11 |
End of Period | $ | 564 |  |  | $ | 14,047 |  |  | $ | 14,611 |

(1) Incurred claims and policyholders' benefits above does not agree to Net incurred claims and benefits as reflected in Note J to the Condensed Consolidated Financial Statements included under Part I, Item 1 of the Quarterly Report on Form 10-Q due to the timing of benefit and expense cash flows in determining Future Policy Benefit reserves, along with the allowable expenses in the reserve.
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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 includes the individual and group run-off long-term care businesses as well as structured settlement obligations not funded by annuities related to certain property and casualty claimants.
•Corporate & 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, asbestos and environmental pollution (A&EP), a legacy portfolio of excess workers' compensation (EWC) policies and certain legacy mass tort reserves.
•Management uses the core income (loss) financial measure to monitor the Company’s operations for the Specialty, Commercial and International segments. Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses and gains or losses resulting from pension settlement transactions. Net investment gains or losses are excluded from the calculation of core income (loss) because they are generally driven by economic factors that are not necessarily reflective of our primary operations. The calculation of core income (loss) excludes gains or losses resulting from pension settlement transactions as they result from decisions regarding our defined benefit pension plans which are unrelated to our primary operations. Management monitors core income (loss) for each business segment to assess segment performance. Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure and management believes some investors may find this measure useful to evaluate the Company's primary operations. Please refer to Note P to the Consolidated Financial Statements within the December 31, 2023 Form 10-K for further discussion regarding how the Company manages its business.
•In evaluating the results of the Specialty, Commercial and International segments, management uses the loss ratio, the underlying loss ratio, the expense ratio, the dividend ratio, the combined ratio and the underlying combined ratio. These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America. The loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums. T he 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 and deductible amounts. 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. 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. In addition, management also utilizes renewal premium change, rate, retention and new business in evaluating operating trends. Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes. Rate represents the average change in price on policies that renew excluding exposure change. Exposure represents the measure of risk used in the pricing of the insurance product. The change in exposure represents the change in premium dollars on policies that renew as a result of the change in risk of the policy. Retention represents the percentage of premium dollars renewed, excluding rate and exposure changes, in comparison to the expiring premium dollars from policies available to renew. New business represents premiums from policies written with new customers and additional policies written with existing customers.
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•Management uses underwriting gain (loss), calculated using GAAP financial results, to monitor insurance operations of our Specialty, Commercial and International segments. Underwriting gain (loss) is deemed to be a non-GAAP measure and is calculated pretax as net earned premiums less total insurance expenses, which includes insurance claims and policyholders' benefits, amortization of deferred acquisition costs and other insurance related expenses. Net income (loss) is the most directly comparable GAAP measure. Management believes some investors may find this measure useful to evaluate profitability, before tax, derived from our underwriting activities which are managed separately from our investing activities. Underlying underwriting gain (loss) is deemed to be a non-GAAP measure that represents pretax underwriting gain (loss) excluding catastrophe losses and development-related items. Management believes some investors may find this measure useful to evaluate profitability, before tax, of 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.
•This financial supplement may also reference or contain financial measures utilized to monitor the Company's investment portfolio that are not in accordance with GAAP. The Company's investment portfolio is monitored by management through analysis of various factors including unrealized gains and losses on securities, portfolio duration and exposure to market and credit risk.
•For reconciliations of non-GAAP measures to the most comparable GAAP measures and other information, please refer herein and/or to CNA's filings with the Securities and Exchange Commission, available at www.cna.com.
•Gross written premiums ex. 3 rd party captives represents gross written premiums excluding business which is ceded to third party captives, including business related to large warranty programs.
•Statutory capital and surplus represents the excess of an insurance company's admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices.
•Net investment income from fixed income securities, as presented, includes both fixed maturity securities and non-redeemable preferred stock.
•Certain immaterial differences are due to rounding.
•N/M = Not Meaningful
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