EX-99.1 2 q12025exhibit991.htm EX-99.1
FOR IMMEDIATE RELEASE

CNA FINANCIAL ANNOUNCES FIRST QUARTER 2025
NET INCOME OF $1.00 PER SHARE AND CORE INCOME OF $1.03 PER SHARE
•Net income of $274 million versus $338 million in the prior year quarter; core income of $281 million versus $355 million in the prior year quarter.
•P&C core income of $311 million versus $372 million, reflects lower underwriting results partially offset by higher net investment income.
•Life & Group results largely consistent with the prior year quarter.
•Corporate & Other core loss of $36 million versus $22 million in the prior year quarter. The current year quarter includes a $17 million after-tax charge related to unfavorable prior period development associated with legacy mass tort claims.
•Net investment income of $604 million pretax, reflects a $14 million decrease from limited partnerships and common stock to $54 million, partially offset by a $9 million increase from fixed income securities and other investments to $550 million.
•P&C combined ratio of 98.4%, compared with 94.6% in the prior year quarter, including 3.8 points of catastrophe loss impact in both quarters. The current year quarter also includes an unfavorable impact of 2.5 points from net prior period development driven by commercial auto in accident year 2024, compared to a favorable impact of 0.2 points in the prior year quarter.
•Catastrophe losses of $97 million pretax, includes $53 million for the California wildfires, versus $88 million in the prior year quarter.
•P&C underlying combined ratio was 92.1%, compared with 91.0% in the prior year quarter. P&C underlying loss ratio was 61.5% and the expense ratio was 30.2%.
•P&C segments, excluding third party captives, generated gross written premium growth of 7% and net written premium growth of 9%. Excluding currency fluctuations, gross written premiums grew 8% and net written premiums grew 10%. P&C renewal premium change of +6%, with written rate of +4% and exposure change of +2%.
•Book value per share of $37.98; book value per share excluding AOCI of $44.58, a 2% increase from year-end 2024 adjusting for $2.46 of dividends per share paid.
•Board of Directors declares regular quarterly cash dividend of $0.46 per share.
1

C HICAGO, May 5, 2025 --- CNA Financial Corporation (NYSE: CNA) today announced first quarter 2025 net income of $274 million, or $1.00 per share, versus $338 million, or $1.24 per share, in the prior year quarter. Net investment losses for the quarter were $7 million compared to $17 million in the prior year quarter. Core income for the quarter was $281 million, or $1.03 per share, versus $355 million, or $1.30 per share, in the prior year quarter.
Our Property & Casualty segments produced core income of $311 million for the first quarter of 2025, a decrease of $61 million compared to the prior year quarter resulting from lower underwriting results partially offset by higher net investment income. P&C segments, excluding third party captives, generated gross written premium growth of 7% and net written premium growth of 9%, due to retention of 86% and renewal premium change of +6%.
Our Life & Group segment produced core income of $6 million for the first quarter of 2025 compared to $5 million in the prior year quarter.
Our Corporate & Other segment produced a core loss of $36 million for the first quarter of 2025 versus $22 million in the prior year quarter primarily due to a $17 million after-tax charge related to unfavorable prior period development associated with legacy mass tort claims.
CNA Financial declared a quarterly dividend of $0.46 per share, payable June 5, 2025 to stockholders of record on May 19, 2025.

|  |  | Results for the Three Months Ended March 31
($ millions, except per share data) |  |  |  |  | 2025 |  | 2024
Net income |  |  |  |  | $ | 274 |  |  | $ | 338 |
Core income (a) |  |  |  |  | 281 |  |  | 355 |
Net income per diluted share |  |  |  |  | $ | 1.00 |  |  | $ | 1.24 |
Core income per diluted share |  |  |  |  | 1.03 |  |  | 1.30 |

| March 31, 2025 |  | December 31, 2024
Book value per share | $ | 37.98 |  | $ | 38.82
Book value per share excluding AOCI |  | 44.58 |  |  | 46.16

(a)Management utilizes the core income (loss) financial measure to monitor the Company's operations. Please refer herein to the Reconciliation of GAAP Measures to Non-GAAP Measures section of this press release for further discussion of this non-GAAP measure.
"We achieved $281 million of core income, our eighth consecutive quarter of pretax underlying underwriting gain of $200 million or greater, and an overall underwriting profit in a substantially elevated industry catastrophe quarter. Each of our operating segments produced solid growth and strong underlying profitability this quarter.
The P&C all-in combined ratio was 98.4% in the quarter and included 3.8 points of catastrophe loss driven by the California wildfires. The underlying combined ratio was 92.1%.
Gross written premiums excluding captives grew 7% in the quarter and net written premiums grew 9%. New business grew by 7% to $565 million in the quarter.
Rate increase was up a point in the quarter to 4% and renewal premium change was up two points to 6%. We continue to achieve significant rate increase in the social inflation impacted classes of business with excess casualty rates up three points this quarter to 14%. Specialty rate increase was up two points to 3% in the quarter. Retention was 86% for P&C and remained strong in all operating segments.
We are pleased with our overall performance in the first quarter amidst another quarter of significantly elevated industry catastrophes. Our core underlying results remain strong. We are well positioned to capitalize on the many opportunities to grow profitably for the remainder of 2025" said Douglas M. Worman, President & Chief Executive Officer of CNA Financial Corporation.
2

Property & Casualty Operations

|  |  | Results for the Three Months Ended March 31
($ millions) |  |  |  |  | 2025 |  | 2024
Gross written premiums ex. 3 rd party captives |  |  |  |  |  |  | $ | 3,142 |  |  |  | $ | 2,936 |  |
GWP ex. 3 rd party captives change (% year over year) |  |  |  |  |  |  | 7 |  | % |  |  |
Net written premiums |  |  |  |  |  |  | $ | 2,606 |  |  |  | $ | 2,390 |  |
NWP change (% year over year) |  |  |  |  |  |  | 9 |  | % |  |  |
Net earned premiums |  |  |  |  |  |  | $ | 2,520 |  |  |  | $ | 2,331 |  |
NEP change (% year over year) |  |  |  |  |  |  | 8 |  | % |  |  |
Underwriting gain |  |  |  |  |  |  | $ | 40 |  |  |  | $ | 126 |  |
Net investment income |  |  |  |  |  |  | $ | 362 |  |  |  | $ | 357 |  |
Core income |  |  |  |  |  |  | $ | 311 |  |  |  | $ | 372 |  |
Loss ratio |  |  |  |  |  |  | 67.8 |  | % |  | 64.1 |  | %
Less: Effect of catastrophe impacts |  |  |  |  |  |  | 3.8 |  |  |  | 3.8 |  |
Less: Effect of unfavorable (favorable) development-related items |  |  |  |  |  |  | 2.5 |  |  |  | (0.2) |  |
Underlying loss ratio |  |  |  |  |  |  | 61.5 |  | % |  | 60.5 |  | %
Expense ratio |  |  |  |  |  |  | 30.2 |  | % |  | 30.1 |  | %
Combined ratio |  |  |  |  |  |  | 98.4 |  | % |  | 94.6 |  | %
Underlying combined ratio |  |  |  |  |  |  | 92.1 |  | % |  | 91.0 |  | %

•The underlying combined ratio increased 1.1 points as compared with the prior year quarter. The underlying loss ratio increased 1.0 point as compared with the prior year quarter as a result of increases across each segment. The expense ratio was generally consistent with the prior year quarter.
•The combined ratio increased 3.8 points as compared with the prior year quarter. Unfavorable net prior period development increased the loss ratio by 2.5 points in the current quarter compared with 0.2 points of favorable development improving the loss ratio in the prior year quarter. Catastrophe losses were $97 million, or 3.8 points of the loss ratio in the quarter compared with $88 million, or 3.8 points of the loss ratio, for the prior year quarter.
•P&C segments, excluding third party captives, generated gross written premium growth of 7% and net written premium growth of 9%. Excluding currency fluctuations, gross written premiums grew 8% and net written premiums grew 10%.
3

Business Operating Highlights
Specialty

|  |  | Results for the Three Months Ended March 31
($ millions) |  |  |  |  | 2025 |  | 2024
Gross written premiums ex. 3 rd party captives |  |  |  |  |  |  | $ | 930 |  |  |  | $ | 880 |  |
GWP ex. 3 rd party captives change (% year over year) |  |  |  |  |  |  | 6 |  | % |  |  |
Net written premiums |  |  |  |  |  |  | $ | 842 |  |  |  | $ | 792 |  |
NWP change (% year over year) |  |  |  |  |  |  | 6 |  | % |  |  |
Net earned premiums |  |  |  |  |  |  | $ | 830 |  |  |  | $ | 814 |  |
NEP change (% year over year) |  |  |  |  |  |  | 2 |  | % |  |  |
Underwriting gain |  |  |  |  |  |  | $ | 42 |  |  |  | $ | 76 |  |
Loss ratio |  |  |  |  |  |  | 61.4 |  | % |  | 58.6 |  | %
Less: Effect of catastrophe impacts |  |  |  |  |  |  | — |  |  |  | — |  |
Less: Effect of unfavorable (favorable) development-related items |  |  |  |  |  |  | 1.3 |  |  |  | (0.6) |  |
Underlying loss ratio |  |  |  |  |  |  | 60.1 |  | % |  | 59.2 |  | %
Expense ratio |  |  |  |  |  |  | 33.4 |  | % |  | 31.8 |  | %
Combined ratio |  |  |  |  |  |  | 95.1 |  | % |  | 90.7 |  | %
Underlying combined ratio |  |  |  |  |  |  | 93.8 |  | % |  | 91.3 |  | %

•The underlying combined ratio increased 2.5 points as compared with the prior year quarter. The expense ratio increased 1.6 points as compared with the prior year quarter primarily due to higher acquisition costs and employee related costs. The underlying loss ratio increased 0.9 points as compared with the prior year quarter primarily resulting from continued pricing pressure in management liability lines.
•The combined ratio increased 4.4 points as compared with the prior year quarter. Unfavorable net prior period development, driven by auto warranty in accident year 2024, increased the loss ratio by 1.3 points in the current quarter compared with 0.6 points of favorable development improving the loss ratio in the prior year quarter.
•Gross written premiums, excluding third party captives, and net written premiums both grew 6% for the first quarter of 2025.
4

Commercial

|  |  | Results for the Three Months Ended March 31
($ millions) |  |  |  |  | 2025 |  | 2024
Gross written premiums ex. 3 rd party captives |  |  |  |  |  |  | $ | 1,839 |  |  |  | $ | 1,682 |  |
GWP ex. 3 rd party captives change (% year over year) |  |  |  |  |  |  | 9 |  | % |  |  |
Net written premiums |  |  |  |  |  |  | $ | 1,498 |  |  |  | $ | 1,338 |  |
NWP change (% year over year) |  |  |  |  |  |  | 12 |  | % |  |  |
Net earned premiums |  |  |  |  |  |  | $ | 1,380 |  |  |  | $ | 1,202 |  |
NEP change (% year over year) |  |  |  |  |  |  | 15 |  | % |  |  |
Underwriting (loss) gain |  |  |  |  |  |  | $ | (17) |  |  |  | $ | 29 |  |
Loss ratio |  |  |  |  |  |  | 73.0 |  | % |  | 68.8 |  | %
Less: Effect of catastrophe impacts |  |  |  |  |  |  | 6.3 |  |  |  | 6.8 |  |
Less: Effect of unfavorable development-related items |  |  |  |  |  |  | 3.8 |  |  |  | — |  |
Underlying loss ratio |  |  |  |  |  |  | 62.9 |  | % |  | 62.0 |  | %
Expense ratio |  |  |  |  |  |  | 27.6 |  | % |  | 28.2 |  | %
Combined ratio |  |  |  |  |  |  | 101.1 |  | % |  | 97.6 |  | %
Underlying combined ratio |  |  |  |  |  |  | 91.0 |  | % |  | 90.8 |  | %

•The underlying combined ratio increased 0.2 points as compared with the prior year quarter. The underlying loss ratio increased 0.9 points compared with the prior year quarter as a result of the continuation of elevated loss cost trends in commercial auto. The expense ratio improved 0.6 points primarily attributed to net earned premium growth of 15%.
•The combined ratio increased 3.5 points as compared with the prior year quarter. Unfavorable net prior period development, driven by commercial auto in accident year 2024, increased the loss ratio by 3.8 points in the current quarter compared with no net prior period development in the prior year quarter. Catastrophe losses were $86 million, or 6.3 points of the loss ratio in the quarter compared with $82 million, or 6.8 points of the loss ratio, for the prior year quarter.
•Gross written premiums, excluding third party captives, grew 9% and net written premiums grew 12% for the first quarter of 2025.
5

International

|  |  | Results for the Three Months Ended March 31
($ millions) |  |  |  |  | 2025 |  | 2024
Gross written premiums |  |  |  |  |  |  | $ | 373 |  |  |  | $ | 374 |  |
GWP change (% year over year) |  |  |  |  |  |  | — |  | % |  |  |
Net written premiums |  |  |  |  |  |  | $ | 266 |  |  |  | $ | 260 |  |
NWP change (% year over year) |  |  |  |  |  |  | 2 |  | % |  |  |
Net earned premiums |  |  |  |  |  |  | $ | 310 |  |  |  | $ | 315 |  |
NEP change (% year over year) |  |  |  |  |  |  | (2) |  | % |  |  |
Underwriting gain |  |  |  |  |  |  | $ | 15 |  |  |  | $ | 21 |  |
Loss ratio |  |  |  |  |  |  | 62.1 |  | % |  | 60.1 |  | %
Less: Effect of catastrophe impacts |  |  |  |  |  |  | 3.6 |  |  |  | 2.0 |  |
Less: Effect of (favorable) unfavorable development-related items |  |  |  |  |  |  | — |  |  |  | — |  |
Underlying loss ratio |  |  |  |  |  |  | 58.5 |  | % |  | 58.1 |  | %
Expense ratio |  |  |  |  |  |  | 33.3 |  | % |  | 33.2 |  | %
Combined ratio |  |  |  |  |  |  | 95.4 |  | % |  | 93.3 |  | %
Underlying combined ratio |  |  |  |  |  |  | 91.8 |  | % |  | 91.3 |  | %

•The underlying combined ratio increased 0.5 points as compared with the prior year quarter primarily due to a 0.4 points increase in the underlying loss ratio. The expense ratio was generally consistent with the prior year quarter.
•The combined ratio increased 2.1 points as compared with the prior year quarter. Catastrophe losses were $11 million, or 3.6 points of the loss ratio in the quarter compared with $6 million, or 2.0 points of the loss ratio, for the prior year quarter.
•Excluding currency fluctuations, gross written premiums grew 4% and net written premiums grew 7% for the first quarter of 2025.
6

Life & Group

|  |  | Results for the Three Months Ended March 31
($ 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 first quarter of 2025 was generally consistent with the prior year quarter, reflecting favorable persistency, partially offset by lower net investment income from limited partnerships.
Corporate & Other

|  |  | Results for the Three Months Ended March 31
($ millions) |  |  |  |  | 2025 |  | 2024
Insurance claims and policyholders' benefits |  |  |  |  |  |  | $ | 9 |  |  |  | $ | (8) |  |
Interest expense |  |  |  |  |  |  | 32 |  |  |  | 34 |  |
Net investment income |  |  |  |  |  |  | 16 |  |  |  | 21 |  |
Core loss |  |  |  |  |  |  | (36) |  |  |  | (22) |  |

Core loss increased $14 million for the first quarter of 2025 as compared with the prior year quarter primarily due to a $17 million after-tax charge related to unfavorable prior period development associated with legacy mass tort claims.
Net Investment Income

|  |  | Results for the Three Months Ended March 31
|  |  |  |  | 2025 |  | 2024
Fixed income securities and other |  |  |  |  |  |  | $ | 550 |  |  |  | $ | 541 |  |
Limited partnership and common stock investments |  |  |  |  |  |  | 54 |  |  |  | 68 |  |
Net investment income |  |  |  |  |  |  | $ | 604 |  |  |  | $ | 609 |  |

Net investment income decreased $5 million for the first quarter of 2025 as compared with the prior year quarter reflecting the largely offsetting impacts of lower common stock returns and higher income from fixed income securities.
Stockholders' Equity
Stockholders’ equity of $10.3 billion decreased 2% from year-end 2024, primarily due to dividends paid to stockholders partially offset by net income.
Book value per share ex AOCI of $44.58 increased 2% from year-end 2024 adjusting for $2.46 of dividends per share.
As of March 31, 2025, statutory capital and surplus for the Combined Continental Casualty Companies was $11.0 billion.
7

About the Company
CNA is one of the largest U.S. commercial property and casualty insurance companies. Backed by more than 125 years of experience, CNA provides a broad range of standard and specialized insurance products and services for businesses and professionals in the U.S., Canada and Europe. For more information, please visit CNA at www.cna.com.
Contacts

Media: |  | Analysts:
Kelly Messina | Vice President, Marketing |  | Ralitza K. Todorova | Vice President, Investor Relations & Rating Agencies
872-817-0350 |  | 312-822-3834

Earnings Remarks & Materials
A transcript of earnings remarks will be available on CNA's website at www.cna.com via the Investor Relations section. Remarks will include commentary from the Company's President and Chief Executive Officer, Douglas M. Worman, and Chief Financial Officer, Scott R. Lindquist. An earnings presentation and financial supplement information related to the results will also be posted and available on the CNA website.
Definition of Reported Segments
•Specialty provides management and professional liability and other coverages through property and casualty products and services using a network of brokers, independent agencies and managing general underwriters.
•Commercial works with a network of brokers and independent agents to market a broad range of property and casualty insurance products to all types of insureds targeting small business, construction, middle markets and other commercial customers.
•International underwrites property and casualty coverages on a global basis through a branch operation in Canada, a European business consisting of insurance companies based in the U.K and Luxembourg and Hardy, our Lloyd's Syndicate.
•Life & Group includes the individual and group run-off long-term care businesses as well as structured settlement obligations not funded by annuities related to certain property and casualty claimants.
•Corporate & Other primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off, including CNA Re, asbestos and environmental pollution (A&EP), a legacy portfolio of excess workers' compensation (EWC) policies and legacy mass tort reserves.
Financial Measures
Management utilizes the following metrics in their evaluation of the Property & Casualty Operations.
These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).
•Loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums.
•Underlying loss ratio represents the loss ratio excluding catastrophe losses and development-related items.
•Expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums.
•Dividend ratio is the ratio of policyholders' dividends incurred to net earned premiums.
•Combined ratio is the sum of the loss ratio, the expense and the dividend ratio.
•Underlying combined ratio is the sum of the underlying loss, 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. The components to reconcile the combined ratio and loss ratio to the underlying combined ratio and underlying loss ratio for Property & Casualty, Specialty, Commercial and International segments are set forth on pages 3, 4, 5 and 6, respectively.
Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes.
8

Rate represents the average change in price on policies that renew excluding exposure change.
Exposure represents the measure of risk used in the pricing of the insurance product. The change in exposure represents the change in premium dollars on policies that renew as a result of the change in risk of the policy.
Retention represents the percentage of premium dollars renewed, excluding rate and exposure changes, in comparison to the expiring premium dollars from policies available to renew.
New business represents premiums from policies written with new customers and additional policies written with existing customers.
Gross written premiums ex. 3 rd party captives represents gross written premiums excluding business which is ceded to third party captives, including business related to large warranty programs.
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.
Statutory capital and surplus represents the excess of an insurance company's admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices. Statutory capital and surplus as of the current period is preliminary.
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.
Reconciliation of GAAP Measures to Non-GAAP Measures
Management utilizes financial measures not in accordance with GAAP to monitor the Company's insurance operations and investment portfolio. The Company believes the presentation of these measures provides investors with a better understanding of the significant factors that comprise the Company's operating performance. Reconciliations of these measures to the most comparable GAAP measures follow below.
Reconciliation of Net Income (Loss) to Core Income (Loss)
Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses and gains or losses resulting from pension settlement transactions. Net investment gains or losses are excluded from the calculation of core income (loss) because they are generally driven by economic factors that are not necessarily reflective of our primary operations. The calculation of core income (loss) excludes gains or losses resulting from pension settlement transactions as they result from decisions regarding our defined benefit pension plans which are unrelated to our primary operations. Management monitors core income (loss) for each business segment to assess segment performance. Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure.

|  |  | Results for the Three Months Ended March 31
($ millions) |  |  |  |  | 2025 |  | 2024
Net income |  |  |  |  | $ | 274 |  |  | $ | 338 |
Less: Net investment losses |  |  |  |  | (7) |  |  | (17) |
Core income |  |  |  |  | $ | 281 |  |  | $ | 355 |

Reconciliation of Net Income (Loss) per Diluted Share to Core Income (Loss) per Diluted Share
Core income (loss) per diluted share provides management and investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core income (loss). Core income (loss) per diluted share is core income (loss) on a per diluted share basis.

|  |  | Results for the Three Months Ended March 31
|  |  |  |  | 2025 |  | 2024
Net income per diluted share |  |  |  |  | $ | 1.00 |  |  | $ | 1.24 |
Less: Net investment losses |  |  |  |  | (0.03) |  |  | (0.06) |
Core income per diluted share |  |  |  |  | $ | 1.03 |  |  | $ | 1.30 |

9

Reconciliation of Net Income (Loss) to Underwriting Gain (Loss) and Underlying Underwriting Gain (Loss)
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 results 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.

| Results for the 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 |  |  |  |  |  |  |  |

| Results for the 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 |  |  |  |  |  |  |  |

10

Reconciliation of Book Value per Share to Book Value per Share Excluding AOCI
Book value per share excluding AOCI allows management and investors to analyze the amount of the Company's net worth primarily attributable to the Company's business operations. The Company believes this measurement is useful as it reduces the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.

| March 31, 2025 |  | December 31, 2024
Book value per share | $ | 37.98 |  |  | $ | 38.82 |
Less: Per share impact of AOCI | (6.60) |  |  | (7.34) |
Book value per share excluding AOCI | $ | 44.58 |  |  | $ | 46.16 |

Calculation of Return on Equity and Core Return on Equity
Core return on equity provides management and investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to its business operations.

|  |  | Results for the Three Months Ended March 31 |
($ millions) |  |  |  |  | 2025 |  | 2024 |
Annualized net income |  |  |  |  | $ | 1,096 |  |  | $ | 1,351 |  |
Average stockholders' equity including AOCI (a) |  |  |  |  | 10,396 |  |  | 9,778 |  |
Return on equity |  |  |  |  | 10.5 |  | % | 13.8 |  | %
Annualized core income |  |  |  |  | $ | 1,125 |  |  | $ | 1,420 |  |
Average stockholders' equity excluding AOCI (a) |  |  |  |  | 12,284 |  |  | 12,400 |  |
Core return on equity |  |  |  |  | 9.2 |  | % | 11.5 |  | %

(a)Average stockholders' equity is calculated using a simple average of the beginning and ending balances for the period.
For additional information, please refer to CNA's most recent 10-K on file with the Securities and Exchange Commission, as well as the financial supplement, available at www.cna.com.
Forward-Looking Statements
This press release includes statements that relate to anticipated future events (forward-looking statements) 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, 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. Many of these risks and uncertainties cannot be controlled by CNA. For a detailed description of these risks and uncertainties, please refer to CNA’s filings with the Securities and Exchange Commission, available at www.cna.com.
Any forward-looking statements made in this press release are made by CNA as of the date of this press release. Further, CNA does not have any obligation to update or revise any forward-looking statement contained in this press release, even if CNA’s expectations or any related events, conditions or circumstances change.
Any descriptions of coverage under CNA policies or programs in this press release are provided for convenience only and are not to be relied upon with respect to questions of coverage, exclusions or limitations. With regard to all such matters, the terms and provisions of relevant insurance policies are primary and controlling. In addition, please note that all coverages may not be available in all states.
“CNA" is a registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the "CNA" trademark in connection with insurance underwriting and claims activities. Copyright © 2025 CNA. All rights reserved.
# # #
11