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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 March 31, 2025
OR

| ☐ | 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 May 1, 2025, 270,621,865 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 months ended March 31, 2025 and 2024 (Unaudited) | 3
| Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2025 and 2024 (Unaudited) | 4
| Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 (Unaudited) | 5
| Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (Unaudited) | 6
| Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 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 | 38
3. | Quantitative and Qualitative Disclosures About Market Risk | 58
4. | Controls and Procedures | 58
| PART II |
1 | Legal Proceedings | 59
2 | Unregistered Sales of Equity Securities and Use of Protocols | 59
6 | Exhibits | 61

2

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PART I
Item 1. Condensed Consolidated Financial Statements
CNA Financial Corporation
Condensed Consolidated Statements of Operations (Unaudited)

Three months ended March 31 |  |  |
(In millions, except per share data) | 2025 |  | 2024
Revenues |  |  |
Net earned premiums | $ | 2,626 |  |  | $ | 2,441 |
Net investment income | 604 |  |  | 609 |
Net investment losses | (9) |  |  | (22) |
Non-insurance warranty revenue | 397 |  |  | 407 |
Other revenues | 9 |  |  | 9 |
Total revenues | 3,627 |  |  | 3,444 |
Claims, Benefits and Expenses |  |  |
Insurance claims and policyholders’ benefits (re-measurement loss of $8 and $15) | 2,027 |  |  | 1,807 |
Amortization of deferred acquisition costs | 471 |  |  | 444 |
Non-insurance warranty expense | 385 |  |  | 394 |
Other operating expenses | 363 |  |  | 337 |
Interest expense | 32 |  |  | 35 |
Total claims, benefits and expenses | 3,278 |  |  | 3,017 |
Income before income tax | 349 |  |  | 427 |
Income tax expense | (75) |  |  | (89) |
Net income | $ | 274 |  |  | $ | 338 |
Basic earnings per share | $ | 1.01 |  |  | $ | 1.24 |
Diluted earnings per share | $ | 1.00 |  |  | $ | 1.24 |
Weighted Average Outstanding Common Stock and Common Stock Equivalents |  |  |
Basic | 271.3 |  | 271.6
Diluted | 272.6 |  | 272.7

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)

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Comprehensive Income |  |  |
Net income | $ | 274 |  |  | $ | 338 |
Other Comprehensive Income, net of tax |  |  |
Changes in: |  |  |
Net unrealized gains and losses on investments with an allowance for credit losses | (3) |  |  | 2 |
Net unrealized gains and losses on other investments | 283 |  |  | (217) |
Net unrealized gains and losses on investments | 280 |  |  | (215) |
Impact of changes in discount rates used to measure long-duration contract liabilities | (114) |  |  | 341 |
Foreign currency translation adjustment | 38 |  |  | (32) |
Pension and postretirement benefits | 2 |  |  | 6 |
Other comprehensive income, net of tax | 206 |  |  | 100 |
Total comprehensive income | $ | 480 |  |  | $ | 438 |

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) | March 31, 2025 (Unaudited) |  | December 31, 2024
Assets |  |  |
Investments: |  |  |
Fixed maturity securities at fair value (amortized cost of $43,991 and $43,481, less allowance for credit loss of $47 and $45) | $ | 41,973 |  |  | $ | 41,111 |
Equity securities at fair value (cost of $677 and $632) | 695 |  |  | 659 |
Limited partnership investments | 2,572 |  |  | 2,520 |
Other invested assets | 96 |  |  | 85 |
Mortgage loans (less allowance for credit loss of $35 and $35) | 1,049 |  |  | 1,019 |
Short-term investments | 1,584 |  |  | 2,088 |
Total investments | 47,969 |  |  | 47,482 |
Cash | 483 |  |  | 472 |
Reinsurance receivables (less allowance for uncollectible receivables of $22 and $21) | 6,266 |  |  | 6,051 |
Insurance receivables (less allowance for uncollectible receivables of $26 and $26) | 3,703 |  |  | 3,671 |
Accrued investment income | 465 |  |  | 451 |
Deferred acquisition costs | 999 |  |  | 959 |
Deferred income taxes | 779 |  |  | 850 |
Property and equipment at cost (less accumulated depreciation of $330 and $314) | 291 |  |  | 295 |
Goodwill | 146 |  |  | 145 |
Deferred non-insurance warranty acquisition expense | 3,493 |  |  | 3,525 |
Other assets (includes $— and $— due from Loews Corporation) | 2,732 |  |  | 2,591 |
Total assets | $ | 67,326 |  |  | $ | 66,492 |
Liabilities |  |  |
Insurance reserves: |  |  |
Claim and claim adjustment expenses | $ | 25,581 |  |  | $ | 24,976 |
Unearned premiums | 7,504 |  |  | 7,346 |
Future policy benefits | 13,304 |  |  | 13,158 |
Short-term debt | 500 |  |  | — |
Long-term debt | 2,474 |  |  | 2,973 |
Deferred non-insurance warranty revenue | 4,488 |  |  | 4,530 |
Other liabilities (includes $62 and $47 due to Loews Corporation) | 3,196 |  |  | 2,996 |
Total liabilities | 57,047 |  |  | 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; 270,620,627 and 270,844,681 shares outstanding) | 683 |  |  | 683 |
Additional paid-in capital | 2,204 |  |  | 2,229 |
Retained earnings | 9,287 |  |  | 9,686 |
Accumulated other comprehensive loss | (1,785) |  |  | (1,991) |
Treasury stock (2,419,616 and 2,195,562 shares), at cost | (110) |  |  | (94) |
Total stockholders’ equity | 10,279 |  |  | 10,513 |
Total liabilities and stockholders' equity | $ | 67,326 |  |  | $ | 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)

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Cash Flows from Operating Activities |  |  |
Net income | $ | 274 |  |  | $ | 338 |
Adjustments to reconcile net income to net cash flows provided by operating activities: |  |  |
Deferred income tax expense | 27 |  |  | 39 |
Trading portfolio activity | (2) |  |  | — |
Net investment losses | 9 |  |  | 22 |
Equity method investees | 1 |  |  | (25) |
Net amortization of investments | (49) |  |  | (57) |
Depreciation and amortization | 17 |  |  | 16 |
Changes in: |  |  |
Receivables, net | (221) |  |  | (162) |
Accrued investment income | (14) |  |  | (4) |
Deferred acquisition costs | (37) |  |  | (34) |
Insurance reserves | 656 |  |  | 443 |
Other, net | (23) |  |  | (72) |
Net cash flows provided by operating activities | 638 |  |  | 504 |
Cash Flows from Investing Activities |  |  |
Dispositions: |  |  |
Fixed maturity securities - sales | 643 |  |  | 736 |
Fixed maturity securities - maturities, calls and redemptions | 814 |  |  | 507 |
Equity securities | 104 |  |  | 186 |
Limited partnerships | 25 |  |  | 12 |
Mortgage loans | 8 |  |  | 18 |
Purchases: |  |  |
Fixed maturity securities | (1,775) |  |  | (1,621) |
Equity securities | (124) |  |  | (169) |
Limited partnerships | (78) |  |  | (77) |
Mortgage loans | (37) |  |  | (12) |
Change in other investments | (10) |  |  | (2) |
Change in short-term investments | 536 |  |  | 192 |
Purchases of property and equipment | (18) |  |  | (20) |
Other, net | — |  |  | 1 |
Net cash flows provided (used) by investing activities | 88 |  |  | (249) |
Cash Flows from Financing Activities |  |  |
Dividends paid to common stockholders | (673) |  |  | (667) |
Proceeds from the issuance of debt | — |  |  | 490 |
Purchase of treasury stock | (34) |  |  | — |
Other, net | (15) |  |  | (12) |
Net cash flows used by financing activities | (722) |  |  | (189) |
Effect of foreign exchange rate changes on cash | 7 |  |  | (2) |
Net change in cash | 11 |  |  | 64 |
Cash, beginning of year | 472 |  |  | 345 |
Cash, end of period | $ | 483 |  |  | $ | 409 |

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)

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Common Stock |  |  |
Balance, beginning of year | $ | 683 |  |  | $ | 683 |
Balance, end of period | 683 |  |  | 683 |
Additional Paid-in Capital |  |  |
Balance, beginning of year | 2,229 |  |  | 2,221 |
Stock-based compensation | (25) |  |  | (20) |
Balance, end of period | 2,204 |  |  | 2,201 |
Retained Earnings |  |  |
Balance, beginning of year | 9,686 |  |  | 9,755 |
Dividends to common stockholders ($2.46 and $2.44 per share) | (673) |  |  | (668) |
Net income | 274 |  |  | 338 |
Balance, end of period | 9,287 |  |  | 9,425 |
Accumulated Other Comprehensive Loss |  |  |
Balance, beginning of year | (1,991) |  |  | (2,672) |
Other comprehensive income | 206 |  |  | 100 |
Balance, end of period | (1,785) |  |  | (2,572) |
Treasury Stock |  |  |
Balance, beginning of year | (94) |  |  | (94) |
Stock-based compensation | 18 |  |  | 19 |
Purchase of treasury stock | (34) |  |  | — |
Balance, end of period | (110) |  |  | (75) |
Total stockholders' equity | $ | 10,279 |  |  | $ | 9,662 |

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements (Unaudited).
7

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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 March 31, 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 March 31, 2025 and for the three months ended March 31, 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.
8

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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.

Three months ended March 31 |
(In millions, except per share data) | 2025 |  | 2024
Net income | $ | 274 |  |  | $ | 338 |
Common Stock and Common Stock Equivalents |  |  |
Basic |  |  |
Weighted average shares outstanding | 271.3 |  |  | 271.6 |
Diluted |  |  |
Weighted average shares outstanding | 271.3 |  |  | 271.6 |
Dilutive effect of stock-based awards under compensation plans | 1.3 |  |  | 1.1 |
Total | 272.6 |  |  | 272.7 |
Earnings per share |  |  |
Basic | $ | 1.01 |  |  | $ | 1.24 |
Diluted | $ | 1.00 |  |  | $ | 1.24 |

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 shares of CNAF common stock at an aggregate cost of $34 million during the three months ended March 31, 2025. There were no share repurchases during the three months ended March 31, 2024.
9

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

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Fixed maturity securities | $ | 522 |  |  | $ | 502 |
Equity securities | 6 |  |  | 22 |
Limited partnership investments | 56 |  |  | 54 |
Mortgage loans | 16 |  |  | 15 |
Short-term investments | 19 |  |  | 28 |
Trading portfolio | 1 |  |  | 1 |
Other | 6 |  |  | 8 |
Gross investment income | 626 |  |  | 630 |
Investment expense | (22) |  |  | (21) |
Net investment income | $ | 604 |  |  | $ | 609 |
Net investment income (loss) recognized due to the change in fair value of common stock held as of March 31, 2025 and 2024 | $ | (4) |  |  | $ | 13 |

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

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Net investment gains (losses): |  |  |
Fixed maturity securities: |  |  |
Gross gains | $ | 13 |  |  | $ | 14 |
Gross losses | (22) |  |  | (46) |
Net investment gains (losses) on fixed maturity securities | (9) |  |  | (32) |
Equity securities | — |  |  | 11 |
Short-term investments and other | — |  |  | (1) |
Net investment gains (losses) | $ | (9) |  |  | $ | (22) |
Net investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock held as of March 31, 2025 and 2024 | $ | (2) |  |  | $ | 11 |

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.

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Fixed maturity securities available-for-sale: |  |  |
Corporate and other bonds | $ | 7 |  |  | $ | 9 |
Asset-backed | — |  |  | 5 |
Impairment losses (gains) recognized in earnings | $ | 7 |  |  | $ | 14 |

There were no losses recognized on mortgage loans during the three months ended March 31, 2025 or 2024.
10

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The following tables present a summary of fixed maturity securities.

March 31, 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 | $ | 26,388 |  |  | $ | 502 |  |  | $ | 1,149 |  |  | $ | 15 |  |  | $ | 25,726 |
States, municipalities and political subdivisions | 7,246 |  |  | 227 |  |  | 829 |  |  | — |  |  | 6,644 |
Asset-backed: |  |  |  |  |  |  |  |  |
Residential mortgage-backed | 3,844 |  |  | 20 |  |  | 426 |  |  | — |  |  | 3,438 |
Commercial mortgage-backed | 1,788 |  |  | 14 |  |  | 119 |  |  | 18 |  |  | 1,665 |
Other asset-backed | 3,816 |  |  | 24 |  |  | 216 |  |  | 14 |  |  | 3,610 |
Total asset-backed | 9,448 |  |  | 58 |  |  | 761 |  |  | 32 |  |  | 8,713 |
U.S. Treasury and obligations of government-sponsored enterprises | 219 |  |  | 1 |  |  | 2 |  |  | — |  |  | 218 |
Foreign government | 688 |  |  | 8 |  |  | 26 |  |  | — |  |  | 670 |
Total fixed maturity securities available-for-sale | 43,989 |  |  | 796 |  |  | 2,767 |  |  | 47 |  |  | 41,971 |
Total fixed maturity securities trading | 2 |  |  | — |  |  | — |  |  | — |  |  | 2 |
Total fixed maturity securities | $ | 43,991 |  |  | $ | 796 |  |  | $ | 2,767 |  |  | $ | 47 |  |  | $ | 41,973 |

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 |

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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
March 31, 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 | $ | 5,816 |  |  | $ | 141 |  |  | $ | 9,986 |  |  | $ | 1,008 |  |  | $ | 15,802 |  |  | $ | 1,149 |
States, municipalities and political subdivisions | 944 |  |  | 51 |  |  | 2,986 |  |  | 778 |  |  | 3,930 |  |  | 829 |
Asset-backed: |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed | 413 |  |  | 9 |  |  | 2,016 |  |  | 417 |  |  | 2,429 |  |  | 426 |
Commercial mortgage-backed | 98 |  |  | 1 |  |  | 969 |  |  | 118 |  |  | 1,067 |  |  | 119 |
Other asset-backed | 629 |  |  | 16 |  |  | 1,499 |  |  | 200 |  |  | 2,128 |  |  | 216 |
Total asset-backed | 1,140 |  |  | 26 |  |  | 4,484 |  |  | 735 |  |  | 5,624 |  |  | 761 |
U.S. Treasury and obligations of government-sponsored enterprises | 43 |  |  | 1 |  |  | 42 |  |  | 1 |  |  | 85 |  |  | 2 |
Foreign government | 105 |  |  | 2 |  |  | 300 |  |  | 24 |  |  | 405 |  |  | 26 |
Total | $ | 8,048 |  |  | $ | 221 |  |  | $ | 17,798 |  |  | $ | 2,546 |  |  | $ | 25,846 |  |  | $ | 2,767 |

| 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.

| March 31, 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 | $ | 2,212 |  |  | $ | 322 |  |  | $ | 2,567 |  |  | $ | 373 |
AAA | 1,453 |  |  | 265 |  |  | 1,830 |  |  | 283 |
AA | 3,981 |  |  | 701 |  |  | 4,257 |  |  | 730 |
A | 6,254 |  |  | 527 |  |  | 6,340 |  |  | 582 |
BBB | 10,922 |  |  | 849 |  |  | 11,548 |  |  | 980 |
Non-investment grade | 1,024 |  |  | 103 |  |  | 796 |  |  | 92 |
Total | $ | 25,846 |  |  | $ | 2,767 |  |  | $ | 27,338 |  |  | $ | 3,040 |

Based on current facts and circumstances, the Company believes the unrealized losses presented in the March 31, 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 March 31, 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 $456 million, $442 million, and $437 million as of March 31, 2025, December 31, 2024, and March 31, 2024 and is excluded from the estimate of expected credit losses and the amortized cost basis in the table included within this Note.

(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 | — |  |  | — |  |  | — |
Available-for-sale securities accounted for as PCD assets | — |  |  | — |  |  | — |
Reductions to the allowance for credit losses: |  |  |  |  |
Securities sold during the period (realized) | — |  |  | — |  |  | — |
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 |  |  | — |  |  | 2 |
Balance as of March 31, 2025 | $ | 15 |  |  | $ | 32 |  |  | $ | 47 |

(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 sold during the period (realized) | — |  |  | — |  |  | — |
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 | — |  |  | 5 |  |  | 5 |
Balance as of March 31, 2024 | $ | 3 |  |  | $ | 17 |  |  | $ | 20 |

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

| March 31, 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 | $ | 1,842 |  |  | $ | 1,826 |  |  | $ | 1,761 |  |  | $ | 1,753 |
Due after one year through five years | 11,606 |  |  | 11,371 |  |  | 11,678 |  |  | 11,403 |
Due after five years through ten years | 13,277 |  |  | 12,742 |  |  | 13,134 |  |  | 12,415 |
Due after ten years | 17,264 |  |  | 16,032 |  |  | 16,908 |  |  | 15,540 |
Total | $ | 43,989 |  |  | $ | 41,971 |  |  | $ | 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 March 31, 2025, the Company had commitments to purchase or fund approximately $1,575 million and sell approximately $95 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).

March 31, 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 |  |  | $ | 9 |  |  | $ | — |  |  | $ | 209 |  |  | $ | 251 |
LTV 55% to 65% | — |  |  | — |  |  | — |  |  | 15 |  |  | 11 |  |  | 16 |  |  | 42
LTV greater than 65% | — |  |  | — |  |  | 12 |  |  | 31 |  |  | 12 |  |  | — |  |  | 55
DSCR 1.2x - 1.6x |  |  |  |  |  |  |  |  |  |  |  |  |
LTV less than 55% | — |  |  | 60 |  |  | 28 |  |  | 5 |  |  | 2 |  |  | 137 |  |  | 232
LTV 55% to 65% | — |  |  | 41 |  |  | 31 |  |  | 20 |  |  | 30 |  |  | 58 |  |  | 180
LTV greater than 65% | — |  |  | — |  |  | — |  |  | 46 |  |  | — |  |  | — |  |  | 46
DSCR ≤1.2 |  |  |  |  |  |  |  |  |  |  |  |  |
LTV less than 55% | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 21 |  |  | 21
LTV 55% to 65% | 37 |  |  | — |  |  | 23 |  |  | 73 |  |  | — |  |  | 20 |  |  | 153
LTV greater than 65% | — |  |  | — |  |  | — |  |  | 35 |  |  | 21 |  |  | 48 |  |  | 104
Total | $ | 37 |  |  | $ | 101 |  |  | $ | 127 |  |  | $ | 234 |  |  | $ | 76 |  |  | $ | 509 |  |  | $ | 1,084 |

(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 March 31, 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.

March 31, 2025 |  |  |  |  |  |  | Total Assets/Liabilities at Fair Value
(In millions) | Level 1 |  | Level 2 |  | Level 3 |
Assets |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |
Corporate bonds and other | $ | 222 |  |  | $ | 25,043 |  |  | $ | 1,351 |  |  | $ | 26,616 |
States, municipalities and political subdivisions | — |  |  | 6,600 |  |  | 44 |  |  | 6,644 |
Asset-backed | — |  |  | 7,824 |  |  | 889 |  |  | 8,713 |
Total fixed maturity securities | 222 |  |  | 39,467 |  |  | 2,284 |  |  | 41,973 |
Equity securities: |  |  |  |  |  |  |
Common stock | 165 |  |  | — |  |  | 17 |  |  | 182 |
Non-redeemable preferred stock | 35 |  |  | 478 |  |  | — |  |  | 513 |
Total equity securities | 200 |  |  | 478 |  |  | 17 |  |  | 695 |
Short-term and other | 1,368 |  |  | 43 |  |  | — |  |  | 1,411 |
Total assets | $ | 1,790 |  |  | $ | 39,988 |  |  | $ | 2,301 |  |  | $ | 44,079 |
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 January 1, 2025 | $ | 1,278 |  |  | $ | 42 |  |  | $ | 876 |  |  | $ | 20 |  |  |  |  | $ | 2,216 |
Total realized and unrealized investment gains (losses): |  |  |  |  |  |  |  |  |  |  |
Reported in Net investment gains (losses) | — |  |  | — |  |  | — |  |  | 2 |  |  |  |  | 2 |
Reported in Net investment income | — |  |  | — |  |  | 4 |  |  | (1) |  |  |  |  | 3 |
Reported in Other comprehensive income (loss) | 21 |  |  | 2 |  |  | 1 |  |  | — |  |  |  |  | 24 |
Total realized and unrealized investment gains (losses) | 21 |  |  | 2 |  |  | 5 |  |  | 1 |  |  |  |  | 29 |
Purchases | 55 |  |  | — |  |  | 27 |  |  | — |  |  |  |  | 82 |
Sales | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
Settlements | (18) |  |  | — |  |  | (19) |  |  | (4) |  |  |  |  | (41) |
Transfers into Level 3 | 15 |  |  | — |  |  | — |  |  | — |  |  |  |  | 15 |
Transfers out of Level 3 | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
Balance as of March 31, 2025 | $ | 1,351 |  |  | $ | 44 |  |  | $ | 889 |  |  | $ | 17 |  |  |  |  | $ | 2,301 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2025 recognized in Net income (loss) in the period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1) |  |  |  |  | $ | (1) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2025 recognized in Other comprehensive income (loss) in the period | 21 |  |  | 2 |  |  | 1 |  |  | — |  |  |  |  | 24 |

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) | — |  |  | — |  |  | (4) |  |  | — |  |  |  |  | (4) |
Reported in Net investment income | — |  |  | — |  |  | 6 |  |  | 6 |  |  |  |  | 12 |
Reported in Other comprehensive income (loss) | (12) |  |  | (1) |  |  | (5) |  |  | — |  |  |  |  | (18) |
Total realized and unrealized investment gains (losses) | (12) |  |  | (1) |  |  | (3) |  |  | 6 |  |  |  |  | (10) |
Purchases | 74 |  |  | — |  |  | 18 |  |  | — |  |  |  |  | 92 |
Sales | — |  |  | — |  |  | (9) |  |  | (19) |  |  |  |  | (28) |
Settlements | (36) |  |  | — |  |  | (17) |  |  | — |  |  |  |  | (53) |
Transfers into Level 3 | 11 |  |  | — |  |  | — |  |  | — |  |  |  |  | 11 |
Transfers out of Level 3 | — |  |  | — |  |  | (19) |  |  | — |  |  |  |  | (19) |
Balance as of March 31, 2024 | $ | 1,082 |  |  | $ | 43 |  |  | $ | 871 |  |  | $ | 11 |  |  |  |  | $ | 2,007 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2024 recognized in Net income (loss) in the period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  |  |  | $ | 1 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2024 recognized in Other comprehensive income (loss) in the period | (14) |  |  | (1) |  |  | (5) |  |  | — |  |  |  |  | (20) |

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 March 31, 2025 and December 31, 2024, there were $90 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.

March 31, 2025 | Estimated Fair Value (In millions) |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range (Weighted Average)
Fixed maturity securities | $ | 1,805 |  |  | 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.

March 31, 2025 | Carrying Amount |  | Estimated Fair Value
(In millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |
Mortgage loans | $ | 1,049 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,035 |  |  | $ | 1,035 |
Liabilities |  |  |  |  |  |  |  |  |
Short-term debt | $ | 500 |  |  | $ | — |  |  | $ | 499 |  |  | $ | — |  |  | $ | 499 |
Long-term debt | 2,474 |  |  | — |  |  | 2,410 |  |  | — |  |  | 2,410 |

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 $97 million and $88 million for the three months ended March 31, 2025 and 2024 driven by severe weather related events, including $53 million for the California wildfires in 2025.
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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.

Three months ended March 31 |  |  |
(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 | 1,650 |  |  | 1,502 |
Increase (decrease) in provision for insured events of prior years | 80 |  |  | (6) |
Amortization of discount | 10 |  |  | 10 |
Total net incurred (1) | 1,740 |  |  | 1,506 |
Net payments attributable to: |  |  |
Current year events | (80) |  |  | (113) |
Prior year events | (1,212) |  |  | (1,168) |
Total net payments | (1,292) |  |  | (1,281) |
Foreign currency translation adjustment and other | 53 |  |  | (41) |
Net reserves, end of period | 19,764 |  |  | 18,347 |
Ceded reserves, end of period | 5,817 |  |  | 5,241 |
Gross reserves, end of period | $ | 25,581 |  |  | $ | 23,588 |

(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 and uncollectible reinsurance, 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.

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Pretax (favorable) unfavorable development: |  |  |
Specialty | $ | 10 |  |  | $ | (5) |
Commercial | 51 |  |  | (2) |
International | — |  |  | — |
Corporate & Other | 22 |  |  | — |
Total pretax (favorable) unfavorable development | $ | 83 |  |  | $ | (7) |

Unfavorable development of $22 million was recorded within the Corporate & Other segment for the three months ended March 31, 2025, associated with legacy mass tort abuse claims.
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Specialty
The following table presents further detail of the development recorded for the Specialty segment.

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Pretax (favorable) unfavorable development: |  |  |
Medical Professional Liability | $ | — |  |  | $ | — |
Other Professional Liability and Management Liability | — |  |  | — |
Surety | — |  |  | (18) |
Warranty | 10 |  |  | 13 |
Other | — |  |  | — |
Total pretax (favorable) unfavorable development | $ | 10 |  |  | $ | (5) |

2025
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.
Commercial
The following table presents further detail of the development recorded for the Commercial segment.

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Pretax (favorable) unfavorable development: |  |  |
Commercial Auto | $ | 50 |  |  | $ | — |
General Liability | — |  |  | — |
Workers' Compensation | 1 |  |  | (2) |
Property and Other | — |  |  | — |
Total pretax (favorable) unfavorable development | $ | 51 |  |  | $ | (2) |

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

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Pretax (favorable) unfavorable development: |  |  |
Commercial | $ | — |  |  | $ | — |
Specialty | — |  |  | — |
Other | — |  |  | — |
Total pretax (favorable) unfavorable development | $ | — |  |  | $ | — |

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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 $17 million and $12 million for the three months ended March 31, 2025 and 2024. As of March 31, 2025 and December 31, 2024, the cumulative amounts ceded under the LPT were $3.7 billion. The unrecognized deferred retroactive reinsurance benefit was $408 million and $425 million as of March 31, 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 $2.3 billion as of March 31, 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) | 5 |  |  | (28) |
Adjusted balance, January 1 | 3,423 |  |  | 3,557 |
Interest accrual | 44 |  |  | 47 |
Net premiums: earned during period | (101) |  |  | (107) |
Balance, end of period at original locked in discount rate | 3,366 |  |  | 3,497 |
Effect of changes in discount rate | 38 |  |  | 56 |
Balance, March 31 | $ | 3,404 |  |  | $ | 3,553 |
| 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) | 13 |  |  | (13) |
Adjusted balance, January 1 | 17,036 |  |  | 17,078 |
Interest accrual | 229 |  |  | 231 |
Benefit & expense payments | (293) |  |  | (321) |
Balance, end of period at original locked in discount rate | 16,972 |  |  | 16,988 |
Effect of changes in discount rate | (264) |  |  | 78 |
Balance, March 31 | $ | 16,708 |  |  | $ | 17,066 |
| Net LFPB | $ | 13,304 |  |  | $ | 13,513 |

(1) As of March 31, 2025 and 2024 the re-measurement gain (loss) of $(8) million and $(15) 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 March 31 |  |  | Three Months
(In millions) |  |  |  |  | 2025 |  | 2024
Earned premiums |  |  |  |  | $ | 106 |  |  | $ | 110 |
Interest accretion |  |  |  |  | 185 |  |  | 184 |

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

| As of March 31
(In millions) | 2025 |  | 2024
Expected future benefit and expense payments | $ | 31,433 |  |  | $ | 32,474 |
Expected future gross premiums | 5,089 |  |  | 5,270 |

Discounted expected future gross premiums at the upper-medium grade fixed income instrument yield discount rate were $3,550 million and $3,664 million as of March 31, 2025 and 2024.
The weighted average effective duration of the LFPB calculated using the original locked in discount rate was 11 years as of March 31, 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 March 31 |  | As of December 31
| 2025 |  | 2024 |  | 2024
Original locked in discount rate | 5.19 | % |  | 5.22 | % |  | 5.20 | %
Upper-medium grade fixed income instrument discount rate | 5.40 |  |  | 5.20 |  |  | 5.51 |

For the three months ended March 31, 2025 and 2024, immediate charges to net income resulting from adverse development in certain cohorts where the Net Premium Ratio (NPR) exceeded 100% were $14 million and $20 million. For the three months ended March 31, 2025 and 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 was $6 million and $2 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 March 31, 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.

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Net periodic pension cost (benefit) |  |  |
Interest cost on projected benefit obligation | $ | 9 |  |  | $ | 22 |
Expected return on plan assets | (14) |  |  | (29) |
Amortization of net actuarial loss (gain) | 2 |  |  | 7 |
Total net periodic pension cost (benefit) | $ | (3) |  |  | $ | — |

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

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Non-Service Cost (Benefit): |  |  |
Insurance claims and policyholder's benefits | $ | (1) |  |  | $ | — |
Other operating expenses | (2) |  |  | — |
Total net periodic pension cost (benefit) | $ | (3) |  |  | $ | — |

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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 January 1, 2025 | $ | (13) |  |  | $ | (1,876) |  |  | $ | (191) |  |  | $ | 353 |  |  | $ | (264) |  |  | $ | (1,991) |
Other comprehensive income (loss) before reclassifications | (5) |  |  | 277 |  |  | — |  |  | (114) |  |  | 38 |  |  | 196 |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $—, $1, $—, $—, $— and $1 | (2) |  |  | (6) |  |  | (2) |  |  | — |  |  | — |  |  | (10) |
Other comprehensive income (loss) net of tax (expense) benefit of $1, $(74), $—, $31, $— and $(42) | (3) |  |  | 283 |  |  | 2 |  |  | (114) |  |  | 38 |  |  | 206 |
Balance as of March 31, 2025 | $ | (16) |  |  | $ | (1,593) |  |  | $ | (189) |  |  | $ | 239 |  |  | $ | (226) |  |  | $ | (1,785) |

(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 | (1) |  |  | (239) |  |  | — |  |  | 341 |  |  | (32) |  |  | 69 |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $1, $6, $1, $—, $— and $8 | (3) |  |  | (22) |  |  | (6) |  |  | — |  |  | — |  |  | (31) |
Other comprehensive income (loss) net of tax (expense) benefit of $(1), $58, $(1), $(91), $— and $(35) | 2 |  |  | (217) |  |  | 6 |  |  | 341 |  |  | (32) |  |  | 100 |
Balance as of March 31, 2024 | $ | (10) |  |  | $ | (1,830) |  |  | $ | (519) |  |  | $ | (18) |  |  | $ | (195) |  |  | $ | (2,572) |

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 March 31, 2025 | Specialty |  | Commercial |  | International |  | Life & Group |  | Corporate & Other |  |  |  |
(In millions) |  |  |  |  |  | Eliminations |  | Total
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Net earned premiums | $ | 830 |  |  | $ | 1,380 |  |  | $ | 310 |  |  | $ | 106 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,626 |
Net investment income | 151 |  |  | 177 |  |  | 34 |  |  | 226 |  |  | 16 |  |  | — |  |  | 604 |
Non-insurance warranty revenue | 397 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 397 |
Other revenues | 1 |  |  | 8 |  |  | — |  |  | — |  |  | 3 |  |  | (3) |  |  | 9 |
Total operating revenues | 1,379 |  |  | 1,565 |  |  | 344 |  |  | 332 |  |  | 19 |  |  | (3) |  |  | 3,636 |
Claims, benefits and expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Net incurred claims and benefits | 509 |  |  | 1,007 |  |  | 192 |  |  | 300 |  |  | 9 |  |  | — |  |  | 2,017 |
Policyholders’ dividends | 2 |  |  | 8 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 10 |
Amortization of deferred acquisition costs | 189 |  |  | 219 |  |  | 63 |  |  | — |  |  | — |  |  | — |  |  | 471 |
Non-insurance warranty expense | 385 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 385 |
Insurance related administrative expenses | 88 |  |  | 163 |  |  | 40 |  |  | 30 |  |  | — |  |  | — |  |  | 321 |
Interest expense | — |  |  | — |  |  | — |  |  | — |  |  | 32 |  |  | — |  |  | 32 |
Other expenses (1) | 15 |  |  | 10 |  |  | (1) |  |  | — |  |  | 21 |  |  | (3) |  |  | 42 |
Total claims, benefits and expenses | 1,188 |  |  | 1,407 |  |  | 294 |  |  | 330 |  |  | 62 |  |  | (3) |  |  | 3,278 |
Income tax (expense) benefit on core income (loss) | (41) |  |  | (34) |  |  | (13) |  |  | 4 |  |  | 7 |  |  | — |  |  | (77) |
Core income (loss) | $ | 150 |  |  | $ | 124 |  |  | $ | 37 |  |  | $ | 6 |  |  | $ | (36) |  |  | $ | — |  |  | $ | 281 |
Net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | (9) |
Income tax (expense) benefit on net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | 2 |
Net investment gains (losses), after tax |  |  |  |  |  |  |  |  |  |  |  |  | (7) |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  | $ | 274 |

(1) Other expenses for the Company's property and casualty commercial 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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March 31, 2025 | Specialty |  | Commercial |  | International |  | Life & Group |  | Corporate & Other |  |  |  |
(In millions) |  |  |  |  |  | Eliminations |  | Total
Reinsurance receivables | $ | 1,624 |  |  | $ | 1,739 |  |  | $ | 558 |  |  | $ | 81 |  |  | $ | 2,286 |  |  | $ | — |  |  | $ | 6,288 |
Insurance receivables | 992 |  |  | 2,306 |  |  | 429 |  |  | 2 |  |  | — |  |  | — |  |  | 3,729 |
Deferred acquisition costs | 441 |  |  | 423 |  |  | 135 |  |  | — |  |  | — |  |  | — |  |  | 999 |
Goodwill | 117 |  |  | — |  |  | 29 |  |  | — |  |  | — |  |  | — |  |  | 146 |
Deferred non-insurance warranty acquisition expense | 3,493 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,493 |
Insurance reserves |  |  |  |  |  |  |  |  |  |  |  |  |
Claim and claim adjustment expenses | 7,572 |  |  | 11,708 |  |  | 3,046 |  |  | 616 |  |  | 2,639 |  |  | — |  |  | 25,581 |
Unearned premiums | 3,267 |  |  | 3,366 |  |  | 760 |  |  | 112 |  |  | — |  |  | (1) |  |  | 7,504 |
Future policy benefits | — |  |  | — |  |  | — |  |  | 13,304 |  |  | — |  |  | — |  |  | 13,304 |
Deferred non-insurance warranty revenue | 4,488 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,488 |

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Three months ended March 31, 2024 | Specialty |  | Commercial |  | International |  | Life & Group |  | Corporate & Other |  |  |  |
(In millions) |  |  |  |  | Eliminations |  | Total
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Net earned premiums | $ | 814 |  |  | $ | 1,202 |  |  | $ | 315 |  |  | $ | 110 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,441 |
Net investment income | 150 |  |  | 176 |  |  | 31 |  |  | 231 |  |  | 21 |  |  | — |  |  | 609 |
Non-insurance warranty revenue | 407 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 407 |
Other revenues | 1 |  |  | 8 |  |  | — |  |  | — |  |  | 3 |  |  | (3) |  |  | 9 |
Total operating revenues | 1,372 |  |  | 1,386 |  |  | 346 |  |  | 341 |  |  | 24 |  |  | (3) |  |  | 3,466 |
Claims, benefits and expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Net incurred claims and benefits | 477 |  |  | 828 |  |  | 189 |  |  | 312 |  |  | (8) |  |  | — |  |  | 1,798 |
Policyholders’ dividends | 2 |  |  | 7 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9 |
Amortization of deferred acquisition costs | 178 |  |  | 200 |  |  | 66 |  |  | — |  |  | — |  |  | — |  |  | 444 |
Non-insurance warranty expense | 394 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 394 |
Insurance related administrative expenses | 81 |  |  | 138 |  |  | 39 |  |  | 29 |  |  | — |  |  | — |  |  | 287 |
Interest expense | 1 |  |  | — |  |  | — |  |  | — |  |  | 34 |  |  | — |  |  | 35 |
Other expenses (1) | 14 |  |  | 12 |  |  | 2 |  |  | — |  |  | 25 |  |  | (3) |  |  | 50 |
Total claims, benefits and expenses | 1,147 |  |  | 1,185 |  |  | 296 |  |  | 341 |  |  | 51 |  |  | (3) |  |  | 3,017 |
Income tax (expense) benefit on core income (loss) | (48) |  |  | (43) |  |  | (13) |  |  | 5 |  |  | 5 |  |  | — |  |  | (94) |
Core income (loss) | $ | 177 |  |  | $ | 158 |  |  | $ | 37 |  |  | $ | 5 |  |  | $ | (22) |  |  | $ | — |  |  | $ | 355 |
Net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | (22) |
Income tax (expense) benefit on net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | 5 |
Net investment gains (losses), after tax |  |  |  |  |  |  |  |  |  |  |  |  | (17) |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  | $ | 338 |

(1) Other expenses for the Company's property and casualty commercial 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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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.

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Specialty |  |  |
Non-catastrophe net incurred claim and claim adjustment expenses related to current year | $ | 499 |  |  | $ | 482 |
Catastrophe losses | — |  |  | — |
(Favorable) unfavorable development (1) | 10 |  |  | (5) |
Commercial |  |  |
Non-catastrophe net incurred claim and claim adjustment expenses related to current year | $ | 868 |  |  | $ | 746 |
Catastrophe losses | 86 |  |  | 82 |
(Favorable) unfavorable development (1) | 51 |  |  | (2) |
International |  |  |
Non-catastrophe net incurred claim and claim adjustment expenses related to current year | $ | 181 |  |  | $ | 183 |
Catastrophe losses | 11 |  |  | 6 |
(Favorable) unfavorable development (1) | — |  |  | — |

(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.

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Specialty |  |  |
Management & Professional Liability | $ | 746 |  |  | $ | 729 |
Surety | 188 |  |  | 182 |
Warranty & Alternative Risks | 445 |  |  | 461 |
Specialty revenues | 1,379 |  |  | 1,372 |
Commercial |  |  |
Middle Market | 466 |  |  | 432 |
Construction | 510 |  |  | 455 |
Small Business | 156 |  |  | 154 |
Other Commercial | 433 |  |  | 345 |
Commercial revenues | 1,565 |  |  | 1,386 |
International |  |  |
Canada | 94 |  |  | 98 |
Europe | 144 |  |  | 143 |
Hardy | 106 |  |  | 105 |
International revenues | 344 |  |  | 346 |
Life & Group revenues | 332 |  |  | 341 |
Corporate & Other revenues | 19 |  |  | 24 |
Eliminations | (3) |  |  | (3) |
Total operating revenues | 3,636 |  |  | 3,466 |
Net investment gains (losses) | (9) |  |  | (22) |
Total revenues | $ | 3,627 |  |  | $ | 3,444 |

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Note K. Non-Insurance Revenues from Contracts with Customers
The Company had a deferred non-insurance warranty revenue balance of $4.5 billion reported under Liabilities as of March 31, 2025 and December 31, 2024. For the three months ended March 31, 2025 and 2024, the Company recognized $0.4 billion of revenues in each period that were included in the deferred revenue balance as of January 1, 2025 and 2024. For the three months ended March 31, 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 $1.1 billion of the deferred revenue in the remainder of 2025, $1.0 billion in 2026, $0.9 billion in 2027 and $1.5 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 a reconciliation of net income to underwriting gain (loss) and underlying underwriting gain (loss):

Three months ended March 31, 2025 | Specialty | Commercial | International | Property & Casualty |  |  |  |  |  |  |
(In millions) |  |  |  |
Net income | $ | 149 |  | $ | 124 |  | $ | 38 |  | $ | 311 |  |  |  |  |  |  |  |
Net investment losses (gains), after tax | 1 |  | — |  | (1) |  | — |  |  |  |  |  |  |  |
Core income | $ | 150 |  | $ | 124 |  | $ | 37 |  | $ | 311 |  |  |  |  |  |  |  |
Less: |  |  |  |  |  |  |  |  |  |  |
Net investment income | 151 |  | 177 |  | 34 |  | 362 |  |  |  |  |  |  |  |
Non-insurance warranty revenue (expense) | 12 |  | — |  | — |  | 12 |  |  |  |  |  |  |  |
Other revenue (expense), including interest expense | (14) |  | (2) |  | 1 |  | (15) |  |  |  |  |  |  |  |
Income tax expense on core income | (41) |  | (34) |  | (13) |  | (88) |  |  |  |  |  |  |  |
Underwriting gain (loss) | 42 |  | (17) |  | 15 |  | 40 |  |  |  |  |  |  |  |
Effect of catastrophe losses | — |  | 86 |  | 11 |  | 97 |  |  |  |  |  |  |  |
Effect of unfavorable development-related items | 10 |  | 53 |  | — |  | 63 |  |  |  |  |  |  |  |
Underlying underwriting gain | $ | 52 |  | $ | 122 |  | $ | 26 |  | $ | 200 |  |  |  |  |  |  |  |

Three months ended March 31, 2024 | Specialty | Commercial | International | Property & Casualty |  |  |  |  |  |  |
(In millions) |  |  |  |
Net income | $ | 167 |  | $ | 144 |  | $ | 37 |  | $ | 348 |  |  |  |  |  |  |  |
Net investment losses, after tax | 10 |  | 14 |  | — |  | 24 |  |  |  |  |  |  |  |
Core income | $ | 177 |  | $ | 158 |  | $ | 37 |  | $ | 372 |  |  |  |  |  |  |  |
Less: |  |  |  |  |  |  |  |  |  |  |
Net investment income | 150 |  | 176 |  | 31 |  | 357 |  |  |  |  |  |  |  |
Non-insurance warranty revenue (expense) | 13 |  | — |  | — |  | 13 |  |  |  |  |  |  |  |
Other revenue (expense), including interest expense | (14) |  | (4) |  | (2) |  | (20) |  |  |  |  |  |  |  |
Income tax expense on core income | (48) |  | (43) |  | (13) |  | (104) |  |  |  |  |  |  |  |
Underwriting gain | 76 |  | 29 |  | 21 |  | 126 |  |  |  |  |  |  |  |
Effect of catastrophe losses | — |  | 82 |  | 6 |  | 88 |  |  |  |  |  |  |  |
Effect of favorable development-related items | (5) |  | — |  | — |  | (5) |  |  |  |  |  |  |  |
Underlying underwriting gain | $ | 71 |  | $ | 111 |  | $ | 27 |  | $ | 209 |  |  |  |  |  |  |  |

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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 discussed 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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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.

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Operating Revenues |  |  |
Net earned premiums | $ | 2,626 |  |  | $ | 2,441 |
Net investment income | 604 |  |  | 609 |
Non-insurance warranty revenue | 397 |  |  | 407 |
Other revenues | 9 |  |  | 9 |
Total operating revenues | 3,636 |  |  | 3,466 |
Claims, Benefits and Expenses |  |  |
Net incurred claims and benefits (re-measurement loss of $8 and $15) | 2,017 |  |  | 1,798 |
Policyholders' dividends | 10 |  |  | 9 |
Amortization of deferred acquisition costs | 471 |  |  | 444 |
Non-insurance warranty expense | 385 |  |  | 394 |
Insurance related administrative expenses | 321 |  |  | 287 |
Interest expense | 32 |  |  | 35 |
Other expenses | 42 |  |  | 50 |
Total claims, benefits and expenses | 3,278 |  |  | 3,017 |
Income tax expense on core income | (77) |  |  | (94) |
Core income | 281 |  |  | 355 |
Net investment losses | (9) |  |  | (22) |
Income tax benefit on net investment losses | 2 |  |  | 5 |
Net investment losses, after tax | (7) |  |  | (17) |
Net income | $ | 274 |  |  | $ | 338 |

Core income decreased $74 million for the three months ended March 31, 2025 as compared with the same period in 2024. Core income for our Property & Casualty Operations decreased $61 million primarily driven by lower underwriting results partially offset by higher net investment income. Core income for our Life & Group segment increased $1 million, while core loss for our Corporate & Other segment increased $14 million.
Catastrophe losses were $97 million and $88 million for the three months ended March 31, 2025 and 2024, primarily driven by severe weather related events, including $53 million for the California wildfires in 2025. Unfavorable net prior year loss reserve development of $83 million was recorded for the three months ended March 31, 2025 as compared with favorable net prior year loss reserve development of $7 million recorded for the three months ended March 31, 2024 related to our Specialty, Commercial 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.

Three months ended March 31 |  |  |
(In millions, except ratios, rate, renewal premium change and retention) | 2025 |  | 2024
Gross written premiums | $ | 1,672 |  |  | $ | 1,682 |
Gross written premiums excluding third-party captives | 930 |  |  | 880 |
Net written premiums | 842 |  |  | 792 |
Net earned premiums | 830 |  |  | 814 |
Underwriting gain | 42 |  |  | 76 |
Net investment income | 151 |  |  | 150 |
Core income | 150 |  |  | 177 |
Other performance metrics: |  |  |
Loss ratio | 61.4 | % |  | 58.6 | %
Expense ratio | 33.4 |  |  | 31.8 |
Dividend ratio | 0.3 |  |  | 0.3 |
Combined ratio | 95.1 | % |  | 90.7 | %
Less: Effect of catastrophe impacts | — |  |  | — |
Less: Effect of unfavorable (favorable) development-related items | 1.3 |  |  | (0.6) |
Underlying combined ratio | 93.8 | % |  | 91.3 | %
Underlying loss ratio | 60.1 | % |  | 59.2 | %
Rate | 3 | % |  | 2 | %
Renewal premium change | 4 |  |  | 3 |
Retention | 89 |  |  | 88 |
New business | $ | 112 |  |  | $ | 94 |

Gross written premiums, excluding third-party captives, for Specialty increased $50 million for the three months ended March 31, 2025 as compared with the same period in 2024 driven by higher new business and favorable renewal premium change, inclusive of rate. Net written premiums for Specialty increased $50 million for the three months ended March 31, 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 $27 million for the three months ended March 31, 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.
The combined ratio of 95.1% increased 4.4 points for the three months ended March 31, 2025 as compared with the same period in 2024 due to a 2.8 point increase in the loss ratio and a 1.6 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, driven by auto warranty in accident year 2024, 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 primarily driven by higher acquisition costs and employee related costs. There were no catastrophe losses for the three months ended March 31, 2025 and 2024.
Unfavorable net prior year loss reserve development of $10 million was recorded for the three months ended March 31, 2025 as compared with $5 million of favorable net prior year loss reserve development recorded for the three months ended March 31, 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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The following table summarizes the gross and net carried reserves for Specialty.

(In millions) | March 31, 2025 |  | December 31, 2024
Gross case reserves | $ | 2,062 |  |  | $ | 2,023 |
Gross IBNR reserves | 5,510 |  |  | 5,403 |
Total gross carried claim and claim adjustment expense reserves | $ | 7,572 |  |  | $ | 7,426 |
Net case reserves | $ | 1,734 |  |  | $ | 1,697 |
Net IBNR reserves | 4,343 |  |  | 4,282 |
Total net carried claim and claim adjustment expense reserves | $ | 6,077 |  |  | $ | 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.

Three months ended March 31 |  |  |
(In millions, except ratios, rate, renewal premium change and retention) | 2025 |  | 2024
Gross written premiums | $ | 1,853 |  |  | $ | 1,686 |
Gross written premiums excluding third-party captives | 1,839 |  |  | 1,682 |
Net written premiums | 1,498 |  |  | 1,338 |
Net earned premiums | 1,380 |  |  | 1,202 |
Underwriting (loss) gain | (17) |  |  | 29 |
Net investment income | 177 |  |  | 176 |
Core income | 124 |  |  | 158 |
Other performance metrics: |  |  |
Loss ratio | 73.0 | % |  | 68.8 | %
Expense ratio | 27.6 |  |  | 28.2 |
Dividend ratio | 0.5 |  |  | 0.6 |
Combined ratio | 101.1 | % |  | 97.6 | %
Less: Effect of catastrophe impacts | 6.3 |  |  | 6.8 |
Less: Effect of unfavorable development-related items | 3.8 |  |  | — |
Underlying combined ratio | 91.0 | % |  | 90.8 | %
Underlying loss ratio | 62.9 | % |  | 62.0 | %
Rate | 6 | % |  | 6 | %
Renewal premium change | 7 |  |  | 8 |
Retention | 84 |  |  | 85 |
New business | $ | 370 |  |  | $ | 367 |

Gross written premiums for Commercial increased $167 million for the three months ended March 31, 2025 as compared with the same period in 2024 driven by favorable renewal premium change, inclusive of rate. Net written premiums for Commercial increased $160 million for the three months ended March 31, 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 $34 million for the three months ended March 31, 2025 as compared with the same period in 2024, primarily driven by unfavorable net prior year loss reserve development.
The combined ratio of 101.1% increased 3.5 points for the three months ended March 31, 2025 as compared with the same period in 2024 primarily due to a 4.2 point increase in the loss ratio partially offset by a 0.6 point improvement in the expense ratio. The increase in the loss ratio was due to unfavorable net prior year loss reserve development driven by commercial auto in accident year 2024, and an increase in the underlying loss ratio driven by the continuation of elevated loss cost trends in commercial auto. Catastrophe losses were $86 million, or 6.3 points of the loss ratio, for the three months ended March 31, 2025, as compared with $82 million, or 6.8 points of the loss ratio, for the three months ended March 31, 2024. The improvement in the expense ratio was primarily driven by higher net earned premiums.
Unfavorable net prior year loss reserve development of $51 million was recorded for the three months ended March 31, 2025 as compared with $2 million of favorable net prior year loss reserve development recorded for the three months ended March 31, 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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The following table summarizes the gross and net carried reserves for Commercial.

(In millions) | March 31, 2025 |  | December 31, 2024
Gross case reserves | $ | 3,798 |  |  | $ | 3,690 |
Gross IBNR reserves | 7,910 |  |  | 7,646 |
Total gross carried claim and claim adjustment expense reserves | $ | 11,708 |  |  | $ | 11,336 |
Net case reserves | $ | 3,218 |  |  | $ | 3,135 |
Net IBNR reserves | 7,022 |  |  | 6,804 |
Total net carried claim and claim adjustment expense reserves | $ | 10,240 |  |  | $ | 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.

Three months ended March 31 |  |  |
(In millions, except ratios, rate, renewal premium change and retention) | 2025 |  | 2024
Gross written premiums | $ | 373 |  |  | $ | 374 |
Net written premiums | 266 |  |  | 260 |
Net earned premiums | 310 |  |  | 315 |
Underwriting gain | 15 |  |  | 21 |
Net investment income | 34 |  |  | 31 |
Core income | 37 |  |  | 37 |
Other performance metrics: |  |  |
Loss ratio | 62.1 | % |  | 60.1 | %
Expense ratio | 33.3 |  |  | 33.2 |
Combined ratio | 95.4 | % |  | 93.3 | %
Less: Effect of catastrophe impacts | 3.6 |  |  | 2.0 |
Less: Effect of (favorable) unfavorable development-related items | — |  |  | — |
Underlying combined ratio | 91.8 | % |  | 91.3 | %
Underlying loss ratio | 58.5 | % |  | 58.1 | %
Rate | (2) | % |  | 1 | %
Renewal premium change | 1 |  |  | 3 |
Retention | 85 |  |  | 82 |
New business | $ | 83 |  |  | $ | 68 |

Gross written premiums for International decreased $1 million for the three months ended March 31, 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. Net written premiums for International increased $6 million for the three months ended March 31, 2025 as compared with the same period in 2024. Excluding the effect of foreign currency exchange rates, net written premiums increased $19 million for the three months ended March 31, 2025 as compared with the same period in 2024. The decrease in net earned premiums was consistent with the trend in net written premiums in recent quarters.
Core income for the three months ended March 31, 2025 was consistent with the same period in 2024.
The combined ratio of 95.4% increased 2.1 points for the three months ended March 31, 2025 as compared with the same period in 2024 largely due to a 2.0 point increase in the loss ratio. The increase in the loss ratio was primarily driven by higher catastrophe losses. Catastrophe losses were $11 million, or 3.6 points of the loss ratio, for the three months ended March 31, 2025, as compared with $6 million, or 2.0 points of the loss ratio, for the three months ended March 31, 2024. The expense ratio was generally consistent with the same period in 2024.
There was no net prior year loss reserve development recorded for the three months ended March 31, 2025 or 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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The following table summarizes the gross and net carried reserves for International.

(In millions) | March 31, 2025 |  | December 31, 2024
Gross case reserves | $ | 902 |  |  | $ | 876 |
Gross IBNR reserves | 2,144 |  |  | 2,044 |
Total gross carried claim and claim adjustment expense reserves | $ | 3,046 |  |  | $ | 2,920 |
Net case reserves | $ | 767 |  |  | $ | 741 |
Net IBNR reserves | 1,745 |  |  | 1,675 |
Total net carried claim and claim adjustment expense reserves | $ | 2,512 |  |  | $ | 2,416 |

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

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Net earned premiums | $ | 106 |  |  | $ | 110 |
Claims, benefits and expenses | 330 |  |  | 341 |
Net investment income | 226 |  |  | 231 |
Core income | 6 |  |  | 5 |

Core income for the three months ended March 31, 2025 was generally consistent with the same period in 2024, reflecting favorable persistency, partially offset by lower net investment income from limited partnerships.
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Corporate & Other
The following table summarizes the results of operations for the Corporate & Other segment, including intersegment eliminations.

Three months ended March 31 |  |  |  |  |
(In millions) | 2025 |  | 2024 |  |
Net investment income | $ | 16 |  |  | $ | 21 |  |  |
Insurance claims and policyholders' benefits | 9 |  |  | (8) |  |  |
Interest expense | 32 |  |  | 34 |  |  |
Core loss | (36) |  |  | (22) |  |  |

Core loss increased $14 million for three months ended March 31, 2025 as compared with the same period in 2024 primarily due to a $17 million after-tax charge related to unfavorable net prior year loss reserve development associated with legacy mass tort abuse claims. Our annual comprehensive review of legacy mass tort exposures is undertaken in the second quarter of each year, consistent with the recent historical timing of such review. 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) | March 31, 2025 |  | December 31, 2024
Gross case reserves | $ | 1,253 |  |  | $ | 1,241 |
Gross IBNR reserves | 1,386 |  |  | 1,431 |
Total gross carried claim and claim adjustment expense reserves | $ | 2,639 |  |  | $ | 2,672 |
Net case reserves | $ | 124 |  |  | $ | 120 |
Net IBNR reserves | 276 |  |  | 268 |
Total net carried claim and claim adjustment expense reserves | $ | 400 |  |  | $ | 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.

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Fixed income securities: |  |  |
Taxable fixed income securities | $ | 496 |  |  | $ | 472 |
Tax-exempt fixed income securities | 34 |  |  | 38 |
Total fixed income securities | 530 |  |  | 510 |
Limited partnership and common stock investments | 54 |  |  | 68 |
Other, net of investment expense | 20 |  |  | 31 |
Net investment income | $ | 604 |  |  | $ | 609 |
Effective income yield for the fixed income securities portfolio | 4.8 | % |  | 4.7 | %
Limited partnership and common stock return | 2.0 | % |  | 2.9 | %

Net investment income decreased $5 million for the three months ended March 31, 2025 as compared with the same period in 2024 reflecting the largely offsetting impacts of lower common stock returns and higher income from fixed income securities.
Net Investment (Losses) Gains
The components of Net investment (losses) gains are presented in the following table.

Three months ended March 31 |  |  |
(In millions) | 2025 |  | 2024
Fixed maturity securities: |  |  |
Corporate bonds and other | $ | (9) |  |  | $ | (17) |
States, municipalities and political subdivisions | (1) |  |  | — |
Asset-backed | 1 |  |  | (15) |
Total fixed maturity securities | (9) |  |  | (32) |
Non-redeemable preferred stock | — |  |  | 11 |
Derivatives, short-term and other | — |  |  | (1) |
Net investment losses | (9) |  |  | (22) |
Income tax benefit on net investment losses | 2 |  |  | 5 |
Net investment losses, after tax | $ | (7) |  |  | $ | (17) |

Pretax net investment losses decreased $13 million for the three months ended March 31, 2025 as compared with the same period in 2024 driven by lower net losses on disposals of fixed maturity securities and lower impairment losses, partially offset by the favorable change in fair value of non-redeemable preferred stock in the prior year quarter.
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.

| March 31, 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 | $ | 3,043 |  |  | $ | (309) |  |  | $ | 2,936 |  |  | $ | (369) |
AAA | 3,080 |  |  | (198) |  |  | 3,010 |  |  | (217) |
AA | 6,227 |  |  | (545) |  |  | 6,369 |  |  | (567) |
A | 10,711 |  |  | (288) |  |  | 10,260 |  |  | (379) |
BBB | 17,077 |  |  | (551) |  |  | 16,757 |  |  | (729) |
Non-investment grade | 1,835 |  |  | (80) |  |  | 1,779 |  |  | (64) |
Total | $ | 41,973 |  |  | $ | (1,971) |  |  | $ | 41,111 |  |  | $ | (2,325) |

As of March 31, 2025 and December 31, 2024, 1% of our fixed maturity portfolio was rated internally. AAA rated securities included $0.2 billion of prefunded municipal bonds as of March 31, 2025 and December 31, 2024.
The following table presents available-for-sale fixed maturity securities in a gross unrealized loss position by ratings distribution.

| March 31, 2025
(In millions) | Estimated Fair Value |  | Gross Unrealized Losses
U.S. Government, Government agencies and Government-sponsored enterprises | $ | 2,212 |  |  | $ | 322 |
AAA | 1,453 |  |  | 265 |
AA | 3,981 |  |  | 701 |
A | 6,254 |  |  | 527 |
BBB | 10,922 |  |  | 849 |
Non-investment grade | 1,024 |  |  | 103 |
Total | $ | 25,846 |  |  | $ | 2,767 |

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.

| March 31, 2025
(In millions) | Estimated Fair Value |  | Gross Unrealized Losses
Due in one year or less | $ | 1,350 |  |  | $ | 22 |
Due after one year through five years | 7,185 |  |  | 317 |
Due after five years through ten years | 7,338 |  |  | 785 |
Due after ten years | 9,973 |  |  | 1,643 |
Total | $ | 25,846 |  |  | $ | 2,767 |

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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.

| March 31, 2025 |  | December 31, 2024
(In millions) | Estimated Fair Value |  | Effective Duration (In years) |  | Estimated Fair Value |  | Effective Duration (In years)
Life & Group | $ | 15,351 |  |  | 9.8 |  |  | $ | 14,915 |  |  | 9.8 |
Property & Casualty and Corporate & Other | 28,627 |  |  | 4.4 |  |  | 28,779 |  |  | 4.3 |
Total | $ | 43,978 |  |  | 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 three months ended March 31, 2025, net cash provided by operating activities was $638 million as compared with $504 million for the same period in 2024. The net cash increase quarter over quarter was primarily a result of higher ceded reinsurance premium payments the Company paid during the first quarter of 2024, with such similar premium amounts scheduled to occur in the second quarter of 2025. In addition to the foregoing, the increase quarter over quarter was also attributable to higher cash from underwriting and investment earnings.
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 three months ended March 31, 2025, net cash provided by investing activities was $88 million as compared with net cash used by investing activities of $249 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 three months ended March 31, 2025, net cash used by financing activities was $722 million as compared with $189 million for the same period in 2024. Financing activities for the periods presented include:
•In the first quarter of 2025, we paid dividends of $673 million and repurchased 700,000 shares of our common stock at an aggregate cost of $34 million.
•In the first quarter of 2024, we paid dividends of $667 million.
•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 $2.46 per share on our common stock, including a special cash dividend of $2.00 per share, were declared and paid during the three months ended March 31, 2025. On May 2, 2025, our Board of Directors declared a quarterly cash dividend of $0.46 per share, payable June 5, 2025 to stockholders of record on May 19, 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 March 31, 2025 CCC was in a positive earned surplus position. CCC paid dividends of $440 million and $300 million to CNAF during the three months ended March 31, 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.
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;
•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;
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•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.
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 March 31, 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 March 31, 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 March 31, 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 March 31, 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 2. Unregistered Sales of Equity Securities and Use of Proceeds
Items 2 (a) and (b) are not applicable.
(c) The table below details the repurchases of our common stock made during the three months ended March 31, 2025.

Period |  | (a) Total number of shares purchased |  | (b) Average price paid per share |  |  | (c) Total number of shares purchased as part of publicly announced plans or programs |  | (d) Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs (in millions)
February 1, 2025 - February 28, 2025 |  | 700,000 |  |  | $ | 48.83 |  |  |  |  |  | N/A |  | N/A
Total |  | 700,000 |  |  |  |  |  | N/A |  | N/A

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: May 5, 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
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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