CNA FINANCIAL CORP
For the period ended Jun 30, 2026. Filed Aug 3, 2026.
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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.
Jun 30, 2026 · Filed Aug 3, 2026
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 2026-03-31; filed 2026-05-04.
0000021175-26-000031
Item 2. Management's Discussion and Analysis (MD&A) of Financial Conditions and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-03.
0000021175-26-000045
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 120 previous paragraphs and 145 current paragraphs.
93 unchanged; 20 reworded; 26 added; 7 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 20 previous and 22 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 (26)
Current report
Item 2. Management's Discussion and Analysis (MD&A) of Financial Condition and Results of Operations
Current report
CATASTROPHES AND RELATED REINSURANCE
Current 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.
Current 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 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.
Current report
In the second quarter of 2026, we renewed our excess-of-loss property catastrophe reinsurance as described below.
Current report
Group North American Property Treaty
Current 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, 2026 to June 1, 2027 and provides coverage for the accumulation of covered losses from catastrophe occurrences above our per occurrence retention of $300 million up to $1.5 billion for all losses. Losses stemming from terrorism events are covered unless they are due to a nuclear, biological, chemical or radiation event. All layers of the treaty provide for one full reinstatement.
Current report
Net written premiums for Specialty increased $45 million for the three months ended June 30, 2026 as compared with the same period in 2025 driven by higher new business and rate. The increase in net earned premiums was consistent with the trend in net written premiums.
Current report
Core income decreased $20 million for the three months ended June 30, 2026 as compared with the same period in 2025 primarily due to lower underlying underwriting results.
Current report
The combined ratio of 96.5% increased 2.9 points for the three months ended June 30, 2026 as compared with the same period in 2025 primarily due to a 2.7 point increase in the loss ratio. The increase in the loss ratio reflected a higher underlying loss ratio across various lines. The expense ratio was generally consistent with the same period in 2025. There were no catastrophe losses for the three months ended June 30, 2026 or 2025.
Current report
Favorable net prior year loss reserve development of $1 million was recorded for the three months ended June 30, 2026 compared with no net prior year loss reserve development recorded for the three months ended June 30, 2025. Further information on net prior year loss reserve development is in Note E to the Condensed Consolidated Financial Statements included in Part I, Item 1.
Current report
Core income decreased $71 million for the six months ended June 30, 2026 as compared with the same period in 2025 primarily due to lower underlying underwriting results and higher unfavorable net prior year loss reserve development.
Current report
Net written premiums for Commercial increased $80 million for the three months ended June 30, 2026 as compared with the same period in 2025 driven by favorable renewal premium change and higher new business. The increase in net earned premiums was consistent with the trend in net written premiums.
Current report
Core income increased $14 million for the three months ended June 30, 2026 as compared with the same period in 2025 driven by higher net investment income partially offset by lower underlying underwriting results.
Current report
Favorable net prior year loss reserve development of $5 million and $4 million was recorded for the three months ended June 30, 2026 and 2025. 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
Net written premiums for Commercial increased $62 million for the six months ended June 30, 2026 as compared with the same period in 2025 driven by rate and higher new business. The increase in net earned premiums was consistent with the trend in net written premiums.
Current report
Core income increased $2 million for the six months ended June 30, 2026 as compared with the same period in 2025 as higher net investment income was largely offset by lower underlying underwriting results.
Current report
Unfavorable net prior year loss reserve development of $50 million and $47 million was recorded for the six months ended June 30, 2026 and 2025. 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
Core income decreased $16 million for the three months ended June 30, 2026 as compared with the same period in 2025, driven by lower underlying underwriting results partially offset by higher net investment income. Additionally, the prior year period benefited from a favorable impact from changes in foreign currency exchange rates.
Current report
The combined ratio of 96.9% increased 4.1 points for the three months ended June 30, 2026 as compared with the same period in 2025 due to a 2.1 point increase in the loss ratio and a 2.0 point increase in the expense ratio. The increase in the loss ratio was due to an increase in the underlying loss ratio across most lines and higher catastrophe losses. Catastrophe losses were $7 million, or 2.2 points of the loss ratio, for the three months ended June 30, 2026, as compared with $5 million, or 1.4 points of the loss ratio, for the three months ended June 30, 2025. The increase in the expense ratio was primarily driven by continued investments in talent and technology and higher acquisition costs, partially offset by higher net earned premiums.
Current report
Core income decreased $16 million for the six months ended June 30, 2026 as compared with the same period in 2025, driven by lower underlying underwriting results partially offset by higher net investment income. Additionally, the prior year period benefited from a favorable impact from changes in foreign currency exchange rates.
Current report
The combined ratio of 96.4% increased 2.4 points for the six months ended June 30, 2026 as compared with the same period in 2025 due to a 1.9 point increase in the expense ratio and a 0.5 point increase in the loss ratio. The increase in the expense ratio was primarily driven by continued investments in talent and technology and higher acquisition costs, partially offset by higher net earned premiums. The increase in the loss ratio was due to an increase in the underlying loss ratio across most lines partially offset by lower catastrophe losses. Catastrophe losses were $11 million, or 1.7 points of the loss ratio, for the six months ended June 30, 2026, as compared with $16 million, or 2.5 points of the loss ratio, for the six months ended June 30, 2025.
Current report
Core results decreased $11 million for the three months ended June 30, 2026 as compared with the same period in 2025, primarily driven by lower net investment income.
Current report
Results for the six months ended June 30, 2026 were generally consistent with the three month summary above.
Current report
Pretax net investment losses decreased $41 million and $32 million for the three and six months ended June 30, 2026 as compared with the same periods in 2025 driven by lower net losses on disposals of fixed maturity securities and lower impairment losses.
Current report
The effective duration of investments supporting Life & Group liabilities at June 30, 2026 lengthened as compared with December 31, 2025, reflecting repositioning to capitalize on higher rates and reduce reinvestment risk.
Removed paragraphs (7)
Previous report
Core income decreased $51 million for the three months ended March 31, 2026 as compared with the same period in 2025 primarily due to higher unfavorable net prior year loss reserve development and lower underlying underwriting results.
Previous report
Core income decreased $12 million for the three months ended March 31, 2026 as compared with the same period in 2025, driven by lower underlying underwriting results partially offset by higher net investment income.
Previous report
Unfavorable net prior year loss reserve development of $55 million and $51 million was recorded for the three months ended March 31, 2026 and 2025. 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
Core income for the three months ended March 31, 2026 was consistent with the same period in 2025.
Previous report
The combined ratio of 95.9% increased 0.5 points for the three months ended March 31, 2026 as compared with the same period in 2025 due to a 1.6 point increase in the expense ratio, partially offset by a 1.1 point improvement in the loss ratio. The increase in the expense ratio was primarily driven by higher employee related costs and acquisition costs partially offset by higher net earned premiums. The improvement in the loss ratio was primarily driven by lower catastrophe losses partially offset by an increase in the underlying loss ratio driven by continued pricing pressure. Catastrophe losses were $4 million, or 1.2 points of the loss ratio, for the three months ended March 31, 2026, as compared with $11 million, or 3.6 points of the loss ratio, for the three months ended March 31, 2025.
Previous report
Core results decreased $15 million for the three months ended March 31, 2026 as compared with the same period in 2025. Results for the current period reflect unfavorable morbidity partially offset by favorable persistency. Results for the prior year period reflected favorable persistency.
Previous report
Pretax net investment losses increased $9 million for the three months ended March 31, 2026 as compared with the same period in 2025 driven by higher impairment losses and the unfavorable change in fair value of non-redeemable preferred stock.
Reworded paragraphs (20)
Previous wording
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-related reinstatement premiums, 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 catastrophes which are unpredictable as to timing and amount, and development-related items as they are not indicative of our current year underwriting performance.
Current wording
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-related reinstatement premiums, catastrophe losses and development-related items from the loss ratio. Development-related items represent net prior year loss reserve and premium development, and include 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 catastrophes which are unpredictable as to timing and amount, and development-related items as they are not indicative of our current year underwriting performance.
Previous wording
The following tables present reconciliations of net income to core income, underwriting (loss) gain and underlying underwriting gain for our Property & Casualty Operations:
Current wording
The following tables present reconciliations of net income to core income, underwriting gain and underlying underwriting gain for our Property & Casualty Operations:
Previous wording
Core income decreased $56 million for the three months ended March 31, 2026 as compared with the same period in 2025. Core income for our Property & Casualty Operations decreased $63 million primarily driven by lower underlying underwriting results and unfavorable net prior year loss reserve development partially offset by higher net investment income. Core results for our Life & Group segment decreased $15 million, while core loss for our Corporate & Other segment improved $22 million.
Current wording
Core income decreased $67 million for the six months ended June 30, 2026 as compared with the same period in 2025. Core income for our Property & Casualty Operations decreased $85 million primarily driven by lower underlying underwriting results and unfavorable net prior year loss reserve development partially offset by higher net investment income. Core results for our Life & Group segment decreased $26 million, while core loss for our Corporate & Other segment improved $44 million.
Previous wording
Catastrophe losses were $88 million and catastrophe-related reinsurance reinstatement premiums were $9 million for the three months ended March 31, 2026 driven by severe weather related events. Catastrophe losses were $97 million for the three months ended March 31, 2025 driven by severe weather related events, including $53 million for the California wildfires. There were no catastrophe-related reinsurance reinstatement premiums for the three months ended March 31, 2025. Unfavorable net prior year loss reserve development of $100 million and $83 million was recorded for the three months ended March 31, 2026 and 2025 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.
Current wording
Catastrophe losses were $148 million and catastrophe-related reinsurance reinstatement premiums were $9 million for the six months ended June 30, 2026 driven by severe weather related events. Catastrophe losses were $159 million for the six months ended June 30, 2025 driven by severe weather related events. There were no catastrophe-related reinsurance reinstatement premiums for the six months ended June 30, 2025. Unfavorable net prior year loss reserve development of $191 million was recorded for each of the six months ended June 30, 2026 and 2025 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.
Previous wording
Net written premiums for Specialty decreased $8 million for the three months ended March 31, 2026 as compared with the same period in 2025 driven by lower retention partially offset by rate and new business. The increase in net earned premiums was consistent with the trend in net written premiums in recent quarters.
Current wording
Net written premiums for Specialty increased $37 million for the six months ended June 30, 2026 as compared with the same period in 2025 driven by higher new business and rate partially offset by lower retention. The increase in net earned premiums was consistent with the trend in net written premiums.
Previous wording
The combined ratio of 102.7% increased 7.6 points for the three months ended March 31, 2026 as compared with the same period in 2025 primarily due to a 7.3 point increase in the loss ratio. The increase in the loss ratio was due to higher unfavorable net prior year loss reserve development driven by our professional errors & omissions (E&O) business in recent accident years and an increase in the underlying loss ratio driven by loss cost trends exceeding rate for certain lines in recent quarters. The expense ratio was generally consistent with the same period in 2025. There were no catastrophe losses for the three months ended March 31, 2026 or 2025.
Current wording
The combined ratio of 99.5% increased 5.2 points for the six months ended June 30, 2026 as compared with the same period in 2025 primarily due to a 5.0 point increase in the loss ratio. The increase in the loss ratio reflected both a higher underlying loss ratio across various lines and higher unfavorable net prior year loss reserve development. The expense ratio was generally consistent with the same period in 2025. There were no catastrophe losses for the six months ended June 30, 2026 or 2025.
Previous wording
Unfavorable net prior year loss reserve development of $45 million and $10 million was recorded for the three months ended March 31, 2026 and 2025. 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 $44 million and $10 million was recorded for the six months ended June 30, 2026 and 2025. 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
The combined ratio of 103.5% increased 2.4 points for the three months ended March 31, 2026 as compared with the same period in 2025 primarily due to a 3.2 point increase in the loss ratio partially offset by a 0.9 point improvement in the expense ratio. The increase in the loss ratio was driven by a higher underlying loss ratio in excess casualty and workers' compensation. The improvement in the expense ratio was primarily driven by a lower acquisition ratio. Catastrophe losses were $84 million for the three months ended March 31, 2026 as compared with $86 million for the three months ended March 31, 2025. The current quarter also includes $9 million of catastrophe-related reinsurance reinstatement premiums. The effect of catastrophe impacts on the loss ratio was 6.4 points for the three months ended March 31, 2026 as compared with 6.3 points for the three months ended March 31, 2025.
Current wording
The combined ratio of 99.9% increased 2.0 points for the six months ended June 30, 2026 as compared with the same period in 2025 due to a 2.8 point increase in the loss ratio partially offset by a 0.8 point improvement in the expense ratio. The increase in the loss ratio was primarily driven by a higher underlying loss ratio in excess casualty and workers' compensation. The improvement in the expense ratio was primarily driven by a lower acquisition ratio. Catastrophe losses were $137 million for the six months ended June 30, 2026 as compared with $143 million for the six months ended June 30, 2025. The current year also includes $9 million of catastrophe-related reinsurance reinstatement premiums. The effect of catastrophe impacts on the loss ratio was 5.1 points for the six months ended June 30, 2026 as compared with 5.2 points for the six months ended June 30, 2025.
Previous wording
Net written premiums for Commercial decreased $18 million for the three months ended March 31, 2026 as compared with the same period in 2025 driven by lower retention. The increase in net earned premiums was consistent with the trend in net written premiums in recent quarters.
Current wording
Net written premiums for International decreased $6 million for the three months ended June 30, 2026 as compared with the same period in 2025. Excluding the effect of foreign currency exchange rates, net written premiums decreased $11 million as compared with the same period in 2025 driven by lower rate and timing of reinsurance costs, partially offset by higher retention. The increase in net earned premiums was consistent with the trend in net written premiums in recent quarters.
Previous wording
Net written premiums for International increased $42 million for the three months ended March 31, 2026 as compared with the same period in 2025. Excluding the effect of foreign currency exchange rates, net written premiums increased $19 million as compared with the same period in 2025 driven by timing of reinsurance costs, partially offset by lower rate. The increase in net earned premiums was consistent with the trend in net written premiums.
Current wording
Net written premiums for International increased $36 million for the six months ended June 30, 2026 as compared with the same period in 2025. Excluding the effect of foreign currency exchange rates, net written premiums increased $8 million as compared with the same period in 2025 driven by higher retention partially offset by lower rate. The increase in net earned premiums was consistent with the trend in net written premiums.
Previous wording
Core loss improved $22 million for the three months ended March 31, 2026 as compared with the same period in 2025. 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. Insurance claims and policyholders' benefits also includes amortization of the deferred gain related to the asbestos and environmental pollution (A&EP) Loss Portfolio Transfer (LPT). Further information on the net prior year loss reserve development and the A&EP LPT is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.
Current wording
Core loss improved $22 million for the three months ended June 30, 2026 as compared with the same period in 2025. The current quarter includes a $77 million after-tax charge related to unfavorable net prior year loss reserve development largely associated with legacy mass tort abuse reserves as compared with an $88 million after-tax charge in the prior year period. The current quarter also includes an increase of $13 million after-tax associated with the amortization of the deferred gain related to the asbestos and environmental pollution (A&EP) Loss Portfolio Transfer (LPT) as compared to the prior year period.
Previous wording
Net investment income increased $6 million for the three months ended March 31, 2026 as compared with the same period in 2025 driven by higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates partially offset by lower common stock returns.
Current wording
Net investment income increased $39 million and $45 million for the three and six months ended June 30, 2026 as compared with the same periods in 2025 driven by higher limited partnership and common stock returns, as well as higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates.
Previous wording
As of March 31, 2026 and December 31, 2025, 1% of our fixed maturity portfolio was rated internally. Additionally, as of March 31, 2026 and December 31, 2025, we assigned a AAA rating to $688 million and $661 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 June 30, 2026 and December 31, 2025, 1% of our fixed maturity portfolio was rated internally. Additionally, as of June 30, 2026 and December 31, 2025, we assigned a AAA rating to $714 million and $661 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 three months ended March 31, 2026, net cash provided by operating activities was $393 million as compared with $638 million for the same period in 2025. The decrease in cash provided by operating activities was impacted by payments related to specific reinsurance treaties, which occurred during the first quarter of 2026, with such similar amounts paid in the second quarter of 2025. In addition, the decrease quarter over quarter was attributable to an increase in net claim payments partially offset by increased investment earnings.
Current wording
For the six months ended June 30, 2026, net cash provided by operating activities was $1,042 million as compared with $1,200 million for the same period in 2025. The decrease in cash provided by operating activities was driven by an increase in net claim payments partially offset by an increase in premiums collected.
Previous wording
For the three months ended March 31, 2026, net cash provided by investing activities was $444 million as compared with $88 million for the same period in 2025. 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 six months ended June 30, 2026, net cash used by investing activities was $255 million as compared with $471 million for the same period in 2025. Net cash used or provided by investing activities is primarily driven by cash available from operations and by other factors, such as financing activities.
Previous wording
For the three months ended March 31, 2026, net cash used by financing activities was $736 million as compared with $722 million for the same period in 2025. Financing activities for the periods presented include:
Current wording
For the six months ended June 30, 2026, net cash used by financing activities was $867 million as compared with $847 million for the same period in 2025. Financing activities for the periods presented include:
Previous wording
•In the first quarter of 2026, we paid dividends of $682 million and repurchased 755,000 shares of our common stock at an aggregate cost of $36 million.
Current wording
•During the six months ended June 30, 2026, we paid dividends of $812 million and repurchased 755,000 shares of our common stock at an aggregate cost of $36 million.
Previous wording
•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.
Current 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.
Previous wording
Cash dividends of $2.48 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, 2026. On May 1, 2026, our Board of Directors declared a quarterly cash dividend of $0.48 per share, payable June 4, 2026 to stockholders of record on May 18, 2026. 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 $2.96 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, 2026. On July 31, 2026, our Board of Directors declared a quarterly cash dividend of $0.48 per share, payable September 3, 2026 to stockholders of record on August 17, 2026. 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 March 31, 2026, CCC was in a positive earned surplus position. CCC paid dividends of $585 million and $440 million to CNAF during the three months ended March 31, 2026 and 2025. 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 June 30, 2026, CCC was in a positive earned surplus position. CCC paid dividends of $725 million and $610 million to CNAF during the six months ended June 30, 2026 and 2025. 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.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Core income decreased $11 million for the three months ended June 30, 2026 as compared with the same period in 2025. Core income for our Property & Casualty Operations decreased $22 million primarily driven by lower underlying underwriting results partially offset by higher net investment income. Core results for our Life & Group segment decreased $11 million, while core loss for our Corporate & Other segment improved $22 million.
Current report — wording carried from elsewhere
Catastrophe losses were $60 million and $62 million for the three months ended June 30, 2026 and 2025 driven by severe weather related events. There were no catastrophe-related reinsurance reinstatement premiums for the three months ended June 30, 2026 or 2025. Unfavorable net prior year loss reserve development of $91 million and $108 million was recorded for the three months ended June 30, 2026 and 2025 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.
Current report — wording carried from elsewhere
The combined ratio of 96.5% increased 1.7 points for the three months ended June 30, 2026 as compared with the same period in 2025 primarily due to a 2.4 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 primarily driven by a higher underlying loss ratio in excess casualty and workers' compensation. The improvement in the expense ratio was primarily driven by a lower acquisition ratio. Catastrophe losses were $53 million, or 3.7 points of the loss ratio, for the three months ended June 30, 2026, as compared with $57 million, or 4.2 points of the loss ratio, for the three months ended June 30, 2025.
Current report — wording carried from elsewhere
There was no net prior year loss reserve development recorded for the six months ended June 30, 2026 or 2025.
Current report — wording carried from elsewhere
Core loss improved $44 million for the six months ended June 30, 2026 as compared with the same period in 2025. The current period includes a $77 million after-tax charge related to unfavorable net prior year loss reserve development largely associated with legacy mass tort abuse reserves as compared with a $106 million after-tax charge in the prior year period. The current period also includes an increase of $17 million after-tax associated with the amortization of the deferred gain related to the A&EP LPT as compared to the prior year period.
Current report — wording carried from elsewhere
Further information on the net prior year loss reserve development and the A&EP LPT is in Note E to the Condensed Consolidated Financial Statements included under Part I, Item 1.