CNA FINANCIAL CORP
For the period ended Sep 30, 2026. Filed Nov 2, 2026.
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, 2026 · Filed Nov 2, 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 2026-06-30; filed 2026-08-03.
0000021175-26-000045
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-02.
0000021175-26-000058
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 145 previous paragraphs and 148 current paragraphs.
95 unchanged; 30 reworded; 20 added; 19 removed; 1 previous and 3 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 (20)
Current report
Core income decreased $30 million for the three months ended September 30, 2026 as compared with the same period in 2025 primarily due to lower underlying underwriting results and lower net investment income.
Current report
Core income decreased $101 million for the nine months ended September 30, 2026 as compared with the same period in 2025 primarily due to lower underlying underwriting results, higher unfavorable net prior year loss reserve development and lower net investment income.
Current report
The combined ratio of 99.7% increased 7.0 points for the three months ended September 30, 2026 as compared with the same period in 2025 primarily due to a 6.9 point increase in the loss ratio. The increase in the loss ratio reflected a higher underlying loss ratio in excess casualty and workers' compensation, unfavorable net prior year loss reserve development and higher catastrophe losses. The underlying loss ratio was consistent with the first half of 2026. Catastrophe losses were $70 million, or 4.8 points of the loss ratio, for the three months ended September 30, 2026 as compared with $39 million, or 2.7 points of the loss ratio, for the three months ended September 30, 2025. The expense ratio was generally consistent with the same period in 2025.
Current report
Unfavorable net prior year loss reserve development of $34 million was recorded for the three months ended September 30, 2026 as compared with $1 million of favorable net prior year loss reserve development recorded for the three months ended September 30, 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 $69 million for the nine months ended September 30, 2026 as compared with the same period in 2025 due to lower underlying underwriting results, higher unfavorable net prior year loss reserve development and higher catastrophe losses, partially offset by higher net investment income.
Current report
Unfavorable net prior year loss reserve development of $84 million and $46 million was recorded for the nine months ended September 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 increased $42 million for the three months ended September 30, 2026 as compared with the same period in 2025, primarily driven by favorable net prior year loss reserve development in the current period compared with no net prior year loss reserve development in the prior year period.
Current report
The combined ratio of 86.1% improved 5.7 points for the three months ended September 30, 2026 as compared with the same period in 2025 due to a 7.3 point improvement in the loss ratio partially offset by a 1.6 point increase in the expense ratio. The improvement in the loss ratio was due to $35 million of favorable net prior year loss reserve development in the three months ended September 30, 2026 compared with no net prior year loss reserve development in the same period in 2025, partially offset by higher catastrophe losses and an increase in the underlying loss ratio across most lines. The underlying loss ratio was consistent with the first half of 2026. Catastrophe losses were $8 million, or 2.1 points of the loss ratio, for the three months ended September 30, 2026, as compared with $2 million, or 0.6 points of the loss ratio, for the three months ended September 30, 2025. The increase in the expense ratio reflects higher acquisition costs.
Current report
Core results decreased $149 million for the three months ended September 30, 2026 as compared with the same period in 2025. 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, 2026 resulted in a pretax increase in long-term care reserves of $173 million primarily driven by unfavorable cost of care inflation and morbidity impacts, partially offset by favorable premium rate actions. However, the unfavorable expected cash flows from the reserve assumption updates are almost entirely offset by a favorable economic impact from anticipated future investment cash flows from recent investment portfolio actions. Under GAAP accounting, the anticipated benefits of these portfolio actions are not immediately reflected in earnings, but instead are recognized through net investment income over time.
Current report
The cash flow assumption updates from the annual reserve review for the three months ended September 30, 2025 resulted in a pretax increase in long-term care reserves of $7 million.
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, 2025 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 statutory policy level reserves on a carried basis with our best estimate reserves, which incorporates best estimate discount rate and liability assumptions in its determination. Statutory margin is the excess of policy level reserves on a carried basis over the corresponding reserves determined on a best estimate basis. As of September 30, 2026, our statutory long-term care margin was $1.3 billion.
Current report
Core loss improved $2 million for the three months ended September 30, 2026 as compared with the same period in 2025.
Current report
Pretax net investment losses increased $2 million for the three months ended September 30, 2026 as compared with the same period in 2025, driven by the unfavorable change in fair value of non-redeemable preferred stock partially offset by net gains on disposals of fixed maturity securities in the current period compared with net losses in the prior year period.
Current report
Pretax net investment losses decreased $30 million for the nine months ended September 30, 2026, as compared with the same period in 2025, driven by net gains on disposals of fixed maturity securities in the current period compared with net losses in the prior year period, as well as lower impairment losses, partially offset by the unfavorable change in fair value of non-redeemable preferred stock.
Current report
•In the third quarter of 2025, we issued $500 million of 5.20% notes due August 15, 2035.
Removed paragraphs (19)
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 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.
Previous report
In the second quarter of 2026, 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, 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.
Previous 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.
Previous 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.
Previous report
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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
There was no net prior year loss reserve development recorded for the three months ended June 30, 2026 or 2025.
Previous 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.
Previous report
There was no net prior year loss reserve development recorded for the six months ended June 30, 2026 or 2025.
Previous 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.
Previous 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.
Reworded paragraphs (30)
Previous wording
The following table presents a reconciliation of net loss to core (loss) income for our Life & Group segment:
Current wording
The following table presents a reconciliation of net loss to core loss for our Life & Group segment:
Previous wording
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 wording
Core income decreased $206 million for the three months ended September 30, 2026 as compared with the same period in 2025. Core income for our Property & Casualty Operations decreased $59 million primarily driven by lower underlying underwriting results and higher catastrophe losses. Core results for our Life & Group segment decreased $149 million as a result of the annual reserve review, while core loss for our Corporate & Other segment improved $2 million.
Previous wording
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 wording
Catastrophe losses were $78 million and $41 million for the three months ended September 30, 2026 and 2025 driven by severe weather related events. There were no catastrophe-related reinsurance reinstatement premiums for the three months ended September 30, 2026 or 2025. Favorable net prior year loss reserve development of $1 million was recorded for the three months ended September 30, 2026 and 2025 related to our Commercial and International 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 $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.
Current wording
Core income decreased $273 million for the nine months ended September 30, 2026 as compared with the same period in 2025. Core income for our Property & Casualty Operations decreased $144 million primarily driven by lower underlying underwriting results, higher unfavorable net prior year loss reserve development and higher catastrophe losses, partially offset by higher net investment income. Core results for our Life & Group segment decreased $175 million as a result of the annual reserve review, while core loss for our Corporate & Other segment improved $46 million.
Previous 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.
Current wording
Catastrophe losses were $226 million and catastrophe-related reinsurance reinstatement premiums were $9 million for the nine months ended September 30, 2026 driven by severe weather related events. Catastrophe losses were $200 million for the nine months ended September 30, 2025 driven by severe weather related events. There were no catastrophe-related reinsurance reinstatement premiums for the nine months ended September 30, 2025. Unfavorable net prior year loss reserve development of $190 million was recorded for each of the nine months ended September 30, 2026 and 2025 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
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 wording
Net written premiums for Specialty increased $33 million for the three months ended September 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.
Previous wording
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 wording
The combined ratio of 96.8% increased 3.5 points for the three months ended September 30, 2026 as compared with the same period in 2025 primarily due to a 2.3 point increase in the loss ratio and a 1.1 point increase in the expense ratio. The increase in the loss ratio reflected a higher underlying loss ratio across various lines. The underlying loss ratio was consistent with the first half of 2026. The increase in the expense ratio was primarily driven by higher acquisition costs. Catastrophe losses were less than $1 million, or 0.1 points of the loss ratio, for the three months ended September 30, 2026 as compared with no catastrophe losses for the three months ended September 30, 2025.
Previous 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.
Current wording
Net written premiums for Specialty increased $70 million for the nine months ended September 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 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.
Current wording
The combined ratio of 98.6% increased 4.6 points for the nine months ended September 30, 2026 as compared with the same period in 2025 primarily due to a 4.0 point increase in the loss ratio and a 0.5 point increase in the expense 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 increase in the expense ratio was primarily driven by higher acquisition costs. Catastrophe losses were less than $1 million for the nine months ended September 30, 2026. There were no catastrophe losses for the nine months ended September 30, 2025.
Previous 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.
Current wording
Unfavorable net prior year loss reserve development of $44 million and $10 million was recorded for the nine months ended September 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
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 wording
Net written premiums for Commercial increased $23 million for the three months ended September 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.
Previous wording
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 wording
Core income decreased $71 million for the three months ended September 30, 2026 as compared with the same period in 2025 driven by lower underlying underwriting results, unfavorable net prior year loss reserve development and higher catastrophe losses, partially offset by higher net investment income.
Previous wording
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 wording
Net written premiums for Commercial increased $85 million for the nine months ended September 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.
Previous 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.
Current wording
The combined ratio of 99.9% increased 3.8 points for the nine months ended September 30, 2026 as compared with the same period in 2025 due to a 4.2 point increase in the loss ratio partially offset by a 0.4 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, higher unfavorable net prior year loss reserve development and higher catastrophe losses. Catastrophe losses were $207 million for the nine months ended September 30, 2026 as compared with $182 million for the nine months ended September 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 5.0 points for the nine months ended September 30, 2026 as compared with 4.3 points for the nine months ended September 30, 2025. The improvement in the expense ratio was primarily driven by lower acquisition costs.
Previous 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.
Current wording
Net written premiums for International increased $14 million for the three months ended September 30, 2026 as compared with the same period in 2025. Excluding the effect of foreign currency exchange rates, net written premiums increased $18 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
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.
Current wording
Net written premiums for International increased $50 million for the nine months ended September 30, 2026 as compared with the same period in 2025. Excluding the effect of foreign currency exchange rates, net written premiums increased $26 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 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 wording
Core income increased $26 million for the nine months ended September 30, 2026 as compared with the same period in 2025, driven by favorable net prior year loss reserve development in the current period compared with no development in the prior year period and higher net investment income, partially offset by lower underlying underwriting results.
Previous wording
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 wording
The combined ratio of 92.9% improved 0.3 points for the nine months ended September 30, 2026 as compared with the same period in 2025 due to a 2.1 point improvement in the loss ratio largely offset by a 1.8 point increase in the expense ratio. The improvement in the loss ratio was primarily due to $35 million of favorable net prior year loss reserve development in the nine months ended September 30, 2026 compared with no net prior year loss reserve development in the same period in 2025, partially offset by an increase in the underlying loss ratio across most lines. Catastrophe losses were $19 million, or 1.8 points of the loss ratio, for the nine months ended September 30, 2026, as compared with $18 million, or 1.8 points of the loss ratio, for the nine months ended September 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.
Previous wording
Results for the six months ended June 30, 2026 were generally consistent with the three month summary above.
Current wording
Results for the nine months ended September 30, 2026 were generally consistent with the three month summary above.
Previous wording
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 wording
Core loss improved $46 million for the nine months ended September 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 $14 million after-tax associated with the amortization of the deferred gain related to the A&EP LPT as compared to the prior year period.
Previous 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.
Current wording
Net investment income decreased $3 million for the three months ended September 30, 2026 as compared with the same period in 2025 driven by lower limited partnership returns, partially offset by higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates, as well as higher common stock returns.
Previous 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.
Current wording
As of September 30, 2026 and December 31, 2025, 2% and 1% of our fixed maturity portfolio was rated internally. Additionally, as of September 30, 2026 and December 31, 2025, we assigned a AAA rating to $741 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
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.
Current wording
The effective duration of investments supporting Life & Group liabilities at September 30, 2026 lengthened slightly as compared with December 31, 2025, reflecting recent portfolio actions to reduce reinvestment risk partially offset by the impact of the increase in interest rates during the period.
Previous 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.
Current wording
For the nine months ended September 30, 2026, net cash provided by operating activities was $1,696 million as compared with $1,920 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 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.
Current wording
For the nine months ended September 30, 2026, net cash used by investing activities was $752 million as compared with $1,446 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 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:
Current wording
For the nine months ended September 30, 2026, net cash used by financing activities was $1,001 million as compared with $478 million for the same period in 2025. Financing activities for the periods presented include:
Previous 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.
Current wording
•During the nine months ended September 30, 2026, we paid dividends of $943 million and repurchased 755,000 shares of our common stock at an aggregate cost of $36 million.
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
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.
Current wording
Cash dividends of $3.44 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, 2026. On October 30, 2026, our Board of Directors declared a quarterly cash dividend of $0.48 per share, payable December 3, 2026 to stockholders of record on November 16, 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 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.
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, 2026, CCC was in a positive earned surplus position. CCC paid dividends of $905 million and $755 million to CNAF during the nine months ended September 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 (3)
Current report — wording carried from 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.
Current report — wording carried from 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.
Current report — wording carried from elsewhere
Net investment income increased $42 million for the nine months ended September 30, 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 as well as higher common stock returns, partially offset by lower limited partnership returns.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
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.