CNA FINANCIAL CORP
For the period ended Sep 30, 2025. Filed Nov 3, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 3, 2025
CNA$47.32-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-04.
0000021175-25-000074
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-03.
0000021175-25-000097
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 151 previous paragraphs and 150 current paragraphs.
100 unchanged; 34 reworded; 15 added; 13 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 22 previous and 25 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
Core income increased $94 million for the three months ended September 30, 2025 as compared with the same period in 2024, primarily driven by lower catastrophe losses, improved underlying underwriting results and higher net investment income.
Current report
Favorable net prior year loss reserve development of $1 million and $3 million was recorded for the three months ended September 30, 2025 and 2024. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.
Current report
The combined ratio of 96.1% improved 2.2 points for the nine months ended September 30, 2025 as compared with the same period in 2024 due to a 1.2 point improvement in the expense ratio and a 1.0 point improvement in the loss ratio. The improvement in the expense ratio was driven by higher net earned premiums and a lower acquisition ratio. The improvement in the loss ratio was due to lower catastrophe losses partially offset by unfavorable net prior year loss reserve development and an increase in the underlying loss ratio related to social inflation impacted lines. Catastrophe losses were $182 million, or 4.3 points of the loss ratio, for the nine months ended September 30, 2025, as compared with $285 million, or 7.5 points of the loss ratio, for the nine months ended September 30, 2024.
Current report
Core income increased $11 million for the three months ended September 30, 2025 as compared with the same period in 2024 primarily driven by lower catastrophe losses and higher net investment income.
Current report
The combined ratio of 91.8% improved 4.3 points for the three months ended September 30, 2025 as compared with the same period in 2024 due to a 3.4 point improvement in the loss ratio and a 0.9 point improvement in the expense ratio. The improvement in the loss ratio was primarily driven by lower catastrophe losses, partially offset by no net prior year loss reserve development recorded in the current year period compared with $2 million of favorable net prior year loss reserve development in the same period in 2024, and an increase in the underlying loss ratio. Catastrophe losses were $2 million, or 0.6 points of the loss ratio, for the three months ended September 30, 2025, as compared with $16 million, or 5.1 points of the loss ratio, for the three months ended September 30, 2024. The improvement in the expense ratio was primarily driven by higher net earned premiums.
Current report
The combined ratio of 93.2% improved 0.5 points for the nine months ended September 30, 2025 as compared with the same period in 2024 due to a 0.3 point improvement in the loss ratio and a 0.2 point improvement in the expense ratio. The improvement in the loss ratio was primarily driven by lower catastrophe losses, partially offset by no net prior year loss reserve development recorded in the current year period compared with $5 million of favorable net prior year loss reserve development in the same period in 2024. Catastrophe losses were $18 million, or 1.8 points of the loss ratio, for the nine months ended September 30, 2025, as compared with $28 million, or 3.0 points of the loss ratio, for the nine months ended September 30, 2024. The improvement in the expense ratio was primarily driven by higher net earned premiums.
Current report
Core loss increased $13 million for the three months ended September 30, 2025 as compared with the same period in 2024 primarily due to lower net investment income from limited partnerships. Both periods include assumption updates as a result of the annual reserve reviews.
Current report
The cash flow assumption updates from the annual reserve review for the three months ended September 30, 2025 and 2024 resulted in a pretax increase in long-term care reserves of $7 million and $15 million.
Current report
The annual structured settlement reserve review resulted in a pretax increase in claim reserves of $2 million for the three months ended September 30, 2025 and a reduction in claim reserves of $9 million for the three months ended September 30, 2024.
Current report
Future Policy Benefit Reserves
Current report
Annually in the third quarter, an actuarial analysis is performed on policyholder morbidity, persistency, premium rate actions and expense experience. This analysis, combined with judgment, informs the setting of updated cash flow assumptions used to estimate the liability for future policyholder benefits (LFPB). 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.
Current report
The table below summarizes the estimated pretax impact on our results of operations from various hypothetical revisions to our LFPB reserve assumptions. We have assumed that revisions to such assumptions would occur in each policy type, age and duration within each long-term care product. The impact of each sensitivity is discrete and does not reflect the impact one factor may have on another or the mitigating impact from management actions, which may include additional future premium rate increases. Although such hypothetical revisions are not currently required or anticipated, we believe they could occur based on past variances in experience and our expectations of the ranges of future experience that could reasonably occur. Any actual adjustment would be dependent on the specific policies affected and, therefore, may differ from the estimates summarized below. The estimated impacts to results of operations in the table below are after consideration of any net premium ratio impacts.
Current report
The following table summarizes policyholder reserves for Life & Group.
Current report
As part of the annual reserve review, statutory long-term care reserve adequacy is evaluated via premium deficiency testing, by comparing carried statutory reserves with our best estimate reserves, which incorporates best estimate discount rate and liability assumptions in its determination. Statutory margin is the excess of carried reserves over best estimate reserves. As of September 30, 2025, statutory long term care margin increased to $1.5 billion from $1.4 billion.
Current report
Pretax net investment losses improved $3 million for the three months ended September 30, 2025 as compared with the same period in 2024.
Removed paragraphs (13)
Previous report
CATASTROPHES AND RELATED REINSURANCE
Previous report
Various events can cause catastrophe losses. These events can be natural or man-made, including hurricanes, tornadoes, windstorms, earthquakes, hail, severe winter weather, droughts, fires, floods, riots, strikes, civil unrest, cyber-attacks, pandemics and acts of terrorism that produce unusually large aggregate losses.
Previous report
Catastrophes are an inherent risk of the property and casualty insurance business and have contributed to material period-to-period fluctuations in our results of operations and/or equity. We use various analyses and methods, including using one of the industry standard natural catastrophe models, to estimate hurricane and earthquake losses at various return periods and to inform underwriting and reinsurance decisions designed to manage our exposure to catastrophic events. We also generally seek to manage our exposure through the purchase of catastrophe reinsurance and utilize various reinsurance programs to mitigate catastrophe losses, including excess-of-loss occurrence and aggregate treaties covering property and workers’ compensation, a property quota share treaty and the Terrorism Risk Insurance Program Reauthorization Act of 2019 (TRIPRA), as well as individual risk agreements that reinsure from losses from specific classes or lines of business. We regularly review our risk and catastrophe reinsurance coverages and from time to time make changes as we deem appropriate. In the second quarter of 2025, we renewed our excess-of-loss property catastrophe reinsurance as described below:
Previous report
Group North American Property Treaty
Previous report
We purchased corporate catastrophe excess-of-loss treaty reinsurance covering our U.S. states and territories and Canadian property exposures underwritten in our North American and European companies. The treaty has a term of June 1, 2025 to June 1, 2026 and provides coverage for the accumulation of covered losses from catastrophe occurrences above our per occurrence retention of $275 million up to $1.4 billion for all losses. Losses stemming from terrorism events are covered unless they are due to a nuclear, biological or chemical attack. All layers of the treaty provide for one full reinstatement.
Previous report
Group Workers' Compensation Treaty
Previous report
We also purchased corporate workers' compensation catastrophe excess-of-loss treaty reinsurance for the period January 1, 2025 to January 1, 2026 providing $275 million of coverage for the accumulation of covered losses related to natural catastrophes above our per occurrence retention of $25 million. The treaty also provides $775 million of coverage for the accumulation of covered losses related to terrorism events above our per occurrence retention of $25 million. Of the $775 million in terrorism coverage, $200 million is provided for nuclear, biological, chemical and radiation events. All layers of the treaty provide for one full reinstatement.
Previous report
Core income increased $51 million for the three months ended June 30, 2025 as compared with the same period in 2024, primarily driven by improved current accident year underwriting results and higher net investment income.
Previous report
Favorable net prior year loss reserve development of $4 million and $6 million was recorded for the three months ended June 30, 2025 and 2024. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.
Previous report
The combined ratio of 97.9% increased 0.6 points for the six months ended June 30, 2025 as compared with the same period in 2024 due to a 1.6 point increase in the loss ratio partially offset by a 1.0 point improvement in the expense ratio. The increase in the loss ratio was due to unfavorable net prior year loss reserve development and an increase in the underlying loss ratio driven by the continuation of elevated loss cost trends in commercial auto, partially offset by lower catastrophe losses. Catastrophe losses were $143 million, or 5.2 points of the loss ratio, for the six months ended June 30, 2025, as compared with $158 million, or 6.4 points of the loss ratio, for the six months ended June 30, 2024. The improvement in the expense ratio was driven by higher net earned premiums.
Previous report
The combined ratio of 92.8% increased 0.9 points for the three months ended June 30, 2025 as compared with the same period in 2024 largely due to a 0.8 point increase in the loss ratio. The increase in the loss ratio was primarily driven by no net prior year loss reserve development recorded in the current year period compared with $3 million of favorable net prior year loss reserve development in the same period in 2024 and an increase in the underlying loss ratio, partially offset by lower catastrophe losses. Catastrophe losses were $5 million, or 1.4 points of the loss ratio, for the three months ended June 30, 2025, as compared with $6 million, or 2.0 points of the loss ratio, for the three months ended June 30, 2024. The expense ratio was generally consistent with the same period in 2024.
Previous report
The combined ratio of 94.0% increased 1.4 points for the six months ended June 30, 2025 as compared with the same period in 2024 due to a 1.4 point increase in the loss ratio. The increase in the loss ratio was primarily driven by higher catastrophe losses and no net prior year loss reserve development recorded in the current year period compared with $3 million of favorable net prior year loss reserve development in the same period in 2024. Catastrophe losses were $16 million, or 2.5 points of the loss ratio, for the six months ended June 30, 2025, as compared with $12 million, or 2.0 points of the loss ratio, for the six months ended June 30, 2024. The expense ratio was consistent with the same period in 2024.
Previous report
Results for the three months ended June 30, 2025 was generally consistent with the same period in 2024, reflecting favorable persistency, partially offset by lower net investment income.
Reworded paragraphs (34)
Previous wording
The following table presents a reconciliation of net (loss) income to core income (loss) for our Life & Group segment:
Current wording
The following table presents a reconciliation of net (loss) income to core loss for our Life & Group segment:
Previous wording
Core income increased $9 million for the three months ended June 30, 2025 as compared with the same period in 2024. Core income for our Property & Casualty Operations increased $68 million primarily driven by higher net investment income and improved current accident year underwriting results. Core results for our Life & Group segment improved $2 million, while core loss for our Corporate & Other segment increased $61 million.
Current wording
Core income increased $116 million for the three months ended September 30, 2025 as compared with the same period in 2024. Core income for our Property & Casualty Operations increased $110 million primarily driven by lower catastrophe losses, improved underlying underwriting results and higher net investment income. Core loss for our Life & Group segment increased $13 million, while core loss for our Corporate & Other segment improved $19 million.
Previous wording
Catastrophe losses were $159 million and $170 million for the six months ended June 30, 2025 and 2024. Unfavorable net prior year loss reserve development of $191 million and $16 million was recorded for the six months ended June 30, 2025 and 2024 related to our Specialty, Commercial, International and Corporate & Other segments. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.
Current wording
Catastrophe losses were $41 million and $143 million for the three months ended September 30, 2025 and 2024 driven by severe weather related events. Catastrophe losses for three months ended September 30, 2024 included $55 million for Hurricane Helene. Favorable net prior year loss reserve development of $1 million was recorded for the three months ended September 30, 2025 compared to unfavorable net prior year loss reserve development of $17 million for the three months ended September 30, 2024 related to our Commercial, International and Corporate & Other segments. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.
Previous wording
Core income decreased $65 million for the six months ended June 30, 2025 as compared with the same period in 2024. Core income for our Property & Casualty Operations increased $7 million primarily driven by higher net investment income and improved current accident year underwriting results partially offset by unfavorable net prior year loss reserve development compared to favorable net prior year loss reserve development in the prior year period. Core income for our Life & Group segment increased $3 million, while core loss for our Corporate & Other segment increased $75 million.
Current wording
Core income increased $51 million for the nine months ended September 30, 2025 as compared with the same period in 2024. Core income for our Property & Casualty Operations increased $117 million primarily driven by lower catastrophe losses, higher net investment income and improved underlying underwriting results, partially offset by unfavorable net prior year loss reserve development compared to favorable net prior year loss reserve development in the prior year period. Core loss for our Life & Group segment increased $10 million, while core loss for our Corporate & Other segment increased $56 million.
Previous wording
Catastrophe losses were $62 million and $82 million for the three months ended June 30, 2025 and 2024. Unfavorable net prior year loss reserve development of $108 million and $23 million was recorded for the three months ended June 30, 2025 and 2024 related to our Specialty, Commercial, International and Corporate & Other segments. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.
Current wording
Catastrophe losses were $200 million and $313 million for the nine months ended September 30, 2025 and 2024 driven by severe weather related events. Catastrophe losses for the nine months ended September 30, 2024 included $55 million for Hurricane Helene. Unfavorable net prior year loss reserve development of $190 million and $33 million was recorded for the nine months ended September 30, 2025 and 2024 related to our Specialty, Commercial, International and Corporate & Other segments. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.
Previous wording
Gross written premiums, excluding third-party captives, for Specialty increased $29 million for the three months ended June 30, 2025 as compared with the same period in 2024 driven by favorable renewal premium change, inclusive of rate, partially offset by lower retention. Net written premiums for Specialty increased $35 million for the three months ended June 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums.
Current wording
Gross written premiums, excluding third-party captives, for Specialty increased $27 million for the three months ended September 30, 2025 as compared with the same period in 2024 driven by favorable renewal premium change, inclusive of rate, partially offset by lower retention. Net written premiums for Specialty increased $5 million for the three months ended September 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums.
Previous wording
Core income increased $8 million for the three months ended June 30, 2025 as compared with the same period in 2024 primarily due to higher net investment income partially offset by lower underlying underwriting results and no net prior year loss reserve development in the current year period compared with favorable net prior year loss reserve development in the prior year period.
Current wording
Core income increased $5 million for the three months ended September 30, 2025 as compared with the same period in 2024 due to higher net investment income.
Previous wording
The combined ratio of 93.6% increased 0.9 points for the three months ended June 30, 2025 as compared with the same period in 2024 due to a 0.9 point increase in the loss ratio. The increase in the loss ratio was due to an increase in the underlying loss ratio and no net prior year loss reserve development recorded in the current year period compared with $3 million of favorable net prior year loss reserve development in the same period in 2024. The expense ratio was consistent with the same period in 2024. There were no catastrophe losses for the three months ended June 30, 2025 and 2024.
Current wording
The combined ratio of 93.3% increased 0.3 points for the three months ended September 30, 2025 as compared with the same period in 2024 due to a 0.5 point increase in the loss ratio partially offset by a 0.2 point improvement in the expense ratio. The increase in the loss ratio was due to an increase in the underlying loss ratio. There were no catastrophe losses for the three months ended September 30, 2025 and 2024. The improvement in the expense ratio was primarily driven by higher net earned premiums.
Previous wording
Gross written premiums, excluding third-party captives, for Specialty increased $79 million for the six months ended June 30, 2025 as compared with the same period in 2024 driven by favorable renewal premium change, inclusive of rate, and higher new business partially offset by lower retention. Net written premiums for Specialty increased $85 million for the six months ended June 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums.
Current wording
Gross written premiums, excluding third-party captives, for Specialty increased $106 million for the nine months ended September 30, 2025 as compared with the same period in 2024 driven by favorable renewal premium change, inclusive of rate partially offset by lower retention. Net written premiums for Specialty increased $90 million for the nine months ended September 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums.
Previous wording
Core income decreased $19 million for the six months ended June 30, 2025 as compared with the same period in 2024 primarily due to lower underlying underwriting results and unfavorable net prior year loss reserve development in the current year period compared with favorable net prior year loss reserve development in the prior year period, partially offset by higher net investment income.
Current wording
Core income decreased $14 million for the nine months ended September 30, 2025 as compared with the same period in 2024 primarily due to lower underlying underwriting results and unfavorable net prior year loss reserve development in the current year period compared with favorable net prior year loss reserve development in the prior year period, partially offset by higher net investment income.
Previous wording
The combined ratio of 94.3% increased 2.6 points for the six months ended June 30, 2025 as compared with the same period in 2024 due to a 1.8 point increase in the loss ratio and a 0.8 point increase in the expense ratio. The increase in the loss ratio was due to unfavorable net prior year loss reserve development recorded in the current year period and an increase in the underlying loss ratio primarily driven by continued pricing pressure in management liability lines. The increase in the expense ratio was driven by higher employee related and acquisition costs partially offset by higher net earned premiums. There were no catastrophe losses for the six months ended June 30, 2025 and 2024.
Current wording
The combined ratio of 94.0% increased 1.9 points for the nine months ended September 30, 2025 as compared with the same period in 2024 due to a 1.4 point increase in the loss ratio and a 0.5 point increase in the expense ratio. The increase in the loss ratio was due to unfavorable net prior year loss reserve development recorded in the current year period and an increase in the underlying loss ratio primarily driven by continued pricing pressure in management liability lines. The increase in the expense ratio was driven by higher employee related and acquisition costs partially offset by higher net earned premiums. There were no catastrophe losses for the nine months ended September 30, 2025 and 2024.
Previous wording
Unfavorable net prior year loss reserve development of $10 million was recorded for the six months ended June 30, 2025 as compared with $8 million of favorable net prior year loss reserve development recorded for the six months ended June 30, 2024. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I Item 1.
Current wording
Unfavorable net prior year loss reserve development of $10 million was recorded for the nine months ended September 30, 2025 as compared with $8 million of favorable net prior year loss reserve development recorded for the nine months ended September 30, 2024. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I Item 1.
Previous wording
Gross written premiums for Commercial increased $138 million for the three months ended June 30, 2025 as compared with the same period in 2024 driven by favorable renewal premium change, inclusive of rate, partially offset by lower retention. Net written premiums for Commercial increased $105 million for the three months ended June 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums.
Current wording
Gross written premiums for Commercial increased $22 million for the three months ended September 30, 2025 as compared with the same period in 2024 driven by favorable renewal premium change, inclusive of rate, partially offset by lower retention and new business. Net written premiums for Commercial increased $30 million for the three months ended September 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums.
Previous wording
The combined ratio of 94.8% improved 2.2 points for the three months ended June 30, 2025 as compared with the same period in 2024 due to a 1.3 point improvement in the expense ratio and a 0.9 point improvement in the loss ratio. The improvement in the expense ratio was primarily driven by higher net earned premiums and a lower acquisition ratio. The improvement in the loss ratio was primarily due to lower catastrophes losses partially offset by an increase in the underlying loss ratio driven by the continuation of elevated loss cost trends in commercial auto. Catastrophe losses were $57 million, or 4.2 points of the loss ratio, for the three months ended June 30, 2025, as compared with $76 million, or 6.1 points of the loss ratio, for the three months ended June 30, 2024.
Current wording
The combined ratio of 92.7% improved 7.5 points for the three months ended September 30, 2025 as compared with the same period in 2024 due to a 5.9 point improvement in the loss ratio and a 1.6 point improvement in the expense ratio. The improvement in the loss ratio was primarily due to lower catastrophes losses partially offset by an increase in the underlying loss ratio related to social inflation impacted lines. Catastrophe losses were $39 million, or 2.7 points of the loss ratio, for the three months ended September 30, 2025, as compared with $127 million, or 9.6 points of the loss ratio, for the three months ended September 30, 2024. The improvement in the expense ratio was primarily driven by a lower acquisition ratio and higher net earned premiums.
Previous wording
Gross written premiums for Commercial increased $305 million for the six months ended June 30, 2025 as compared with the same period in 2024 driven by favorable renewal premium change, inclusive of rate, partially offset by lower retention. Net written premiums for Commercial increased $265 million for the six months ended June 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums.
Current wording
Gross written premiums for Commercial increased $327 million for the nine months ended September 30, 2025 as compared with the same period in 2024 driven by favorable renewal premium change, inclusive of rate, partially offset by lower retention. Net written premiums for Commercial increased $295 million for the nine months ended September 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums.
Previous wording
Core income increased $17 million for the six months ended June 30, 2025 as compared with the same period in 2024, primarily driven by improved current accident year underwriting results and higher net investment income partially offset by unfavorable net prior year loss reserve development.
Current wording
Core income increased $111 million for the nine months ended September 30, 2025 as compared with the same period in 2024, primarily driven by lower catastrophe losses, improved underlying underwriting results and higher net investment income partially offset by unfavorable net prior year loss reserve development.
Previous wording
Unfavorable net prior year loss reserve development of $47 million was recorded for the six months ended June 30, 2025 as compared with $8 million of favorable net prior year loss reserve development recorded for the six months ended June 30, 2024. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.
Current wording
Unfavorable net prior year loss reserve development of $46 million was recorded for the nine months ended September 30, 2025 as compared with $11 million of favorable net prior year loss reserve development recorded for the nine months ended September 30, 2024. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.
Previous wording
Gross written premiums for International increased $20 million for the three months ended June 30, 2025 as compared with the same period in 2024. Excluding the effect of foreign currency exchange rates, gross written premiums increased $14 million driven by higher new business and retention partially offset by lower rate. Net written premiums for International increased $32 million for the three months ended June 30, 2025 as compared with the same period in 2024. Excluding the effect of foreign currency exchange rates, net written premiums increased $26 million for the three months ended June 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums in recent quarters.
Current wording
Gross written premiums for International increased $17 million for the three months ended September 30, 2025 as compared with the same period in 2024. Excluding the effect of foreign currency exchange rates, gross written premiums increased $9 million driven by higher new business partially offset by lower rate. Net written premiums for International increased $42 million for the three months ended September 30, 2025 as compared with the same period in 2024. Excluding the effect of foreign currency exchange rates, net written premiums increased $33 million for the three months ended September 30, 2025 as compared with the same period in 2024 driven by a true-up due to a reduction in anticipated reinsurance costs for prior treaty terms in the third quarter of 2025. The increase in net earned premiums was consistent with the trend in net written premiums in recent quarters.
Previous wording
Gross written premiums for International increased $19 million for the six months ended June 30, 2025 as compared with the same period in 2024. Excluding the effect of foreign currency exchange rates, gross written premiums increased $28 million driven by higher new business and retention partially offset by lower rate. Net written premiums for International increased $38 million for the six months ended June 30, 2025 as compared with the same period in 2024. Excluding the effect of foreign currency exchange rates, net written premiums increased $45 million for the six months ended June 30, 2025 as compared with the same period in 2024. The increase in net earned premiums was consistent with the trend in net written premiums in recent quarters.
Current wording
Gross written premiums for International increased $36 million for the nine months ended September 30, 2025 as compared with the same period in 2024. Excluding the effect of foreign currency exchange rates, gross written premiums increased $38 million driven by higher new business and retention partially offset by lower rate. Net written premiums for International increased $80 million for the nine months ended September 30, 2025 as compared with the same period in 2024. Excluding the effect of foreign currency exchange rates, net written premiums increased $77 million for the nine months ended September 30, 2025 as compared with the same period in 2024 driven by a true-up due to a reduction in anticipated reinsurance costs for prior treaty terms in the third quarter of 2025. The increase in net earned premiums was consistent with the trend in net written premiums in recent quarters.
Previous wording
Core income increased $9 million for the three months ended June 30, 2025 as compared with the same period in 2024 primarily driven by a favorable impact from changes in foreign currency exchange rates and higher net investment income.
Current wording
Core income increased $20 million for the nine months ended September 30, 2025 as compared with the same period in 2024 primarily driven by higher net investment income, lower catastrophe losses and a favorable impact from changes in foreign currency exchange rates.
Previous wording
Results for the six months ended June 30, 2025 were generally consistent with the three month summary above.
Current wording
Results for the nine months ended September 30, 2025 were generally consistent with the three month summary above.
Previous wording
Core loss increased $61 million for three months ended June 30, 2025 as compared with the same period in 2024. The increase was primarily due to an $88 million after-tax charge related to unfavorable net prior year loss reserve development associated with legacy mass tort abuse reserves as compared with a $28 million after-tax charge in the prior year period, as a result of our annual comprehensive review of legacy mass tort exposures undertaken in the second quarter of each year. The current quarter development charge included certain amounts in anticipation of the agreement in principle with regards to the Diocese of Rochester. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.
Current wording
Core loss improved $19 million for the three months ended September 30, 2025 as compared with the same period in 2024. The improvement was primarily due to no net prior year loss reserve development in the current year as compared with a $17 million after-tax charge in the prior year period related to unfavorable prior year loss reserve development largely associated with legacy mass tort abuse reserves. 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.
Previous wording
Core loss increased $75 million for six months ended June 30, 2025 as compared with the same period in 2024 primarily due to a $106 million after-tax charge related to unfavorable net prior year loss reserve development associated with legacy mass tort abuse reserves as compared with a $28 million after-tax charge in the prior year period. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.
Current wording
Core loss increased $56 million for the nine months ended September 30, 2025 as compared with the same period in 2024 primarily due to a $106 million after-tax charge related to unfavorable net prior year loss reserve development associated with legacy mass tort abuse reserves as compared with a $45 million after-tax charge in the prior year period. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.
Previous wording
Net investment income increased $44 million and $39 million for the three and six months ended June 30, 2025 as compared with the same periods in 2024 driven by higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates, as well as favorable limited partnership and common stock returns.
Current wording
Net investment income increased $12 million and $51 million for the three and nine months ended September 30, 2025 as compared with the same periods in 2024 driven by higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates.
Previous wording
Pretax net investment losses increased $36 million for the three months ended June 30, 2025 as compared with the same period in 2024 driven by higher net losses on disposals of fixed maturity securities and higher impairment losses, partially offset by the favorable change in fair value of non-redeemable preferred stock.
Current wording
Pretax net investment losses increased $20 million for the nine months ended September 30, 2025 as compared with the same period in 2024 driven by a lower favorable change in the fair value of non-redeemable preferred stock and higher net losses on disposals of fixed maturity securities, partially offset by lower impairment losses.
Previous wording
As of June 30, 2025 and December 31, 2024, 1% of our fixed maturity portfolio was rated internally. Additionally, as of June 30, 2025 and December 31, 2024, we assigned a AAA rating to $287 million and $199 million of municipal bonds that were either pre-refunded or backed by mortgage loans guaranteed by a U.S. government agency or sponsored enterprise.
Current wording
As of September 30, 2025 and December 31, 2024, 1% of our fixed maturity portfolio was rated internally. Additionally, as of September 30, 2025 and December 31, 2024, we assigned a AAA rating to $653 million and $199 million of municipal bonds that were either pre-refunded or backed by mortgage loans guaranteed by a U.S. government agency or sponsored enterprise.
Previous wording
For the six months ended June 30, 2025, net cash provided by operating activities was $1,200 million as compared with $1,120 million for the same period in 2024. The increase in cash provided by operating activities was driven by an increase in premiums collected and higher cash from investment earnings, partially offset by an increase in net claim payments.
Current wording
For the nine months ended September 30, 2025, net cash provided by operating activities was $1,920 million as compared with $1,868 million for the same period in 2024. The increase in cash provided by operating activities was driven by an increase in premiums collected and higher cash from investment earnings, partially offset by an increase in net claim payments and higher operating expenses.
Previous wording
For the six months ended June 30, 2025, net cash used by investing activities was $471 million as compared $209 million for the same period in 2024. Net cash provided or used by investing activities is primarily driven by cash available from operations and by other factors, such as financing activities.
Current wording
For the nine months ended September 30, 2025, net cash used by investing activities was $1,446 million as compared with $762 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.
Previous wording
For the six months ended June 30, 2025, net cash used by financing activities was $847 million as compared with $878 million for the same period in 2024. Financing activities for the periods presented include:
Current wording
For the nine months ended September 30, 2025, net cash used by financing activities was $478 million as compared with $998 million for the same period in 2024. Financing activities for the periods presented include:
Previous wording
•During the six months ended June 30, 2025, we paid dividends of $798 million and repurchased 700,000 shares of our common stock at an aggregate cost of $34 million.
Current wording
•During the nine months ended September 30, 2025, we paid dividends of $922 million and repurchased 700,000 shares of our common stock at an aggregate cost of $34 million.
Previous wording
•During the six months ended June 30, 2024, we paid dividends of $786 million and repurchased 450,000 shares of common stock at an aggregate cost of $20 million.
Current wording
•During the nine months ended September 30, 2024, we paid dividends of $906 million and repurchased 450,000 shares of common stock at an aggregate cost of $20 million.
Previous wording
Cash dividends of $2.92 per share on our common stock, including a special cash dividend of $2.00 per share, were declared and paid during the six months ended June 30, 2025. On August 1, 2025, our Board of Directors declared a quarterly cash dividend of $0.46 per share, payable September 4, 2025 to stockholders of record on August 18, 2025. The declaration and payment of future dividends to holders of our common stock will be at the discretion of our Board of Directors and will depend on many factors, including our earnings, financial condition, business needs and regulatory constraints.
Current wording
Cash dividends of $3.38 per share on our common stock, including a special cash dividend of $2.00 per share, were declared and paid during the nine months ended September 30, 2025. On October 31, 2025, our Board of Directors declared a quarterly cash dividend of $0.46 per share, payable December 4, 2025 to stockholders of record on November 17, 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.
Previous wording
Dividends from Continental Casualty Company (CCC) are subject to the insurance holding company laws of the State of Illinois, the domiciliary state of CCC. Under these laws, ordinary dividends, or dividends that do not require prior approval by the Illinois Department of Insurance, are determined based on the greater of the prior year's statutory net income or 10% of statutory surplus as of the end of the prior year, as well as timing and amount of dividends paid in the preceding twelve months. Additionally, ordinary dividends may only be paid from earned surplus, which is calculated by removing unrealized gains from unassigned surplus. As of June 30, 2025 CCC was in a positive earned surplus position. CCC paid dividends of $610 million and $490 million to CNAF during the six months ended June 30, 2025 and 2024. The actual level of dividends paid in any year is determined after an assessment of available dividend capacity, holding company liquidity and cash needs as well as the impact the dividends will have on the statutory surplus of the applicable insurance company.
Current wording
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 September 30, 2025 CCC was in a positive earned surplus position. CCC paid dividends of $755 million and $635 million to CNAF during the nine months ended September 30, 2025 and 2024. The actual level of dividends paid in any year is determined after an assessment of available dividend capacity, holding company liquidity and cash needs as well as the impact the dividends will have on the statutory surplus of the applicable insurance company.
Previous wording
On July 4, 2025, H.R. 1, “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14,” commonly referred to as the One Big Beautiful Bill Act (OBBBA), was enacted. The OBBBA includes significant federal tax law changes which, among other impacts, modify and make permanent certain business tax provisions originally enacted in the 2017 Tax Cuts and Jobs Act. The OBBBA is subject to further clarification from the issuance of future technical guidance by the U.S. Department of Treasury. We are currently evaluating the impacts of the OBBBA but do not expect it to have a material impact on our results of operations or financial condition.
Current wording
On July 4, 2025, H.R. 1, “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14,” commonly referred to as the One Big Beautiful Bill Act (OBBBA), was enacted. The OBBBA includes significant federal tax law changes which, among other impacts, modify and make permanent certain business tax provisions originally enacted in the 2017 Tax Cuts and Jobs Act. The provisions of the OBBBA have not had a material impact on our results of operations or financial condition. The OBBBA is subject to further clarification from the issuance of future technical guidance by the U.S. Department of Treasury.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•In the third quarter of 2025, we issued $500 million of 5.20% notes due August 15, 2035.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
The following tables present reconciliations of net income to core income, underwriting gain and underlying underwriting gain for our Property & Casualty Operations:
Previous report — wording carried elsewhere
Core income increased $9 million for the six months ended June 30, 2025 as compared with the same period in 2024 primarily driven by a favorable impact from changes in foreign currency exchange rates and higher net investment income.
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
Pretax net investment losses increased $23 million for the six months ended June 30, 2025 as compared with the same period in 2024 driven by higher net losses on disposals of fixed maturity securities and a lower favorable change in the fair value of non-redeemable preferred stock.