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What changed in CNA FINANCIAL CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of CNA FINANCIAL CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+226 added−257 removedSource: 10-K (2026-02-10) vs 10-K (2025-02-11)

Top changes in CNA FINANCIAL CORP's 2025 10-K

226 paragraphs added · 257 removed · 193 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeThe SEC maintains an internet site that contains reports, proxy and information statements and other information regarding issuers, including CNA. The public can obtain any documents that we file with the SEC at www.sec.gov .
Biggest changeAvailable Information We file annual, quarterly and current reports, proxy statements and other documents with the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934 (Exchange Act). The SEC maintains an internet site that contains reports, proxy and information statements and other information regarding issuers, including CNA.
Our insurance products primarily include commercial property and casualty coverages, including surety. Our services include warranty, risk management information services and claims administration. Our products and services are primarily marketed through independent agents, brokers and managing general underwriters to a wide variety of customers, including small, medium and large businesses, insurance companies, associations, professionals and other groups.
Our insurance products primarily include commercial property and casualty coverages, including surety. Our services include warranty, risk management information services and claims administration. Our products and services are primarily marketed through independent agents, retail and wholesale brokers and managing general underwriters to a wide variety of customers, including small, medium and large businesses, insurance companies, associations, professionals and other groups.
CNA's property and casualty and remaining life and group insurance operations are primarily conducted by Continental Casualty Company (CCC), The Continental Insurance Company, Western Surety Company, CNA Insurance Company Limited, Hardy Underwriting Bermuda Limited and its subsidiaries (Hardy), and CNA Insurance Company (Europe) S.A. Loews Corporation (Loews) owned approximately 92% of our outstanding common stock as of December 31, 2024.
CNA's property and casualty and remaining life and group insurance operations are primarily conducted by Continental Casualty Company (CCC), The Continental Insurance Company, Western Surety Company, CNA Insurance Company Limited, Hardy Underwriting Bermuda Limited and its subsidiaries (Hardy), and CNA Insurance Company (Europe) S.A. Loews Corporation (Loews) owned approximately 92% of our outstanding common stock as of December 31, 2025.
Discussion of each segment, including the products offered, customers served and distribution channels used, is set forth in the Management's Discussion and Analysis (MD&A) included under Item 7 and in Note P to the Consolidated Financial Statements included under Item 8. Current Regulation The insurance industry is subject to comprehensive and detailed regulation and supervision.
Discussion of each segment, including the products offered, customers served and distribution channels used, is set forth in the Management's Discussion and Analysis (MD&A) included under Item 7 and in Note N to the Consolidated Financial Statements included under Item 8. Current Regulation The insurance industry is subject to comprehensive and detailed regulation and supervision.
Talent, Recruitment and Development We focus on attracting, developing and retaining top-tier talent to reflect the specialist nature of our business. We aim to continually build on the expertise of our workforce. At entry levels, we have implemented trainee and internship programs and we continue to leverage relationships with colleges to attract new and diverse talent.
Talent, Recruitment and Development We focus on attracting, developing and retaining top-tier talent to reflect the specialist nature of our business. We aim to continually build on the expertise of our workforce. At entry levels, we have implemented trainee and internship programs and we continue to leverage relationships with colleges to attract talent.
In addition, the U.S. and foreign regulatory environment in which we operate is continuously evolving, with both existing and prospective regulations that implicate aspects of our corporate governance, public disclosures and risk management, climate change, artificial intelligence and cybersecurity practices. 4 Table of Contents Human Capital As of December 31, 2024, we had approximately 6,500 employees.
In addition, the U.S. and foreign regulatory environment in which we operate is continuously evolving, with both existing and prospective regulations that implicate aspects of our corporate governance, public disclosures and risk management, climate change, artificial intelligence and cybersecurity practices. 4 Table of Contents Human Capital As of December 31, 2025, we had approximately 6,600 employees.
Prudential Regulatory Authority and Financial Conduct Authority, the Office of Superintendent of Financial Institutions in Canada, the Luxembourg insurance regulator Commissariat aux Assurances (the CAA) and the Bermuda Monetary Authority. 3 Table of Contents Domestic insurers are also required by state insurance regulators to provide coverage to certain insureds who would not otherwise be considered eligible by the insurers.
Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA), the Office of Superintendent of Financial Institutions (OSFI) in Canada, the Luxembourg insurance regulator Commissariat aux Assurances (CAA) and the Bermuda Monetary Authority (BMA). 3 Table of Contents Domestic insurers are also required by state insurance regulators to provide coverage to certain insureds who would not otherwise be considered eligible by the insurers.
We also make available free of charge on or through our internet website at www.cna.com our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. 5 Table of Contents
We also make available free of charge on or through our internet website at cna.com our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
While the AM will undergo further refinement as a part of the implementation process, the finding of comparability by the IAIS represents recognition of existing U.S. solvency regulation.
While as of December 31, 2025 the AM continues to undergo further refinement as a part of the implementation process, the finding of comparability by the IAIS represents recognition of existing U.S. solvency regulation.
Employee Benefits We offer comprehensive compensation and benefits packages to eligible employees including a 401k plan, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off and certain family assistance programs. We provide certain benefits to eligible employees that are geared toward enhancing physical, mental, financial and social health.
Employee Benefits We offer comprehensive compensation and benefits packages to eligible employees including a 401k plan, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, employee wellness programs and certain family assistance programs.
We offer a wide range of learning and development opportunities, including mentorship and reverse mentorship programs, apprenticeship and sponsorship programs, tuition reimbursement, technical training and specialized leadership development programs. CNA leaders engage regularly with our employees on their performance and professional development.
We offer a wide range of learning and development opportunities, including mentorship programs, apprenticeship programs, tuition reimbursement, technical training and specialized leadership development programs. CNA leaders engage regularly with our employees on their performance and professional development. We gather employee feedback through pulse surveys and routine dialogue with our employee groups and leaders from across the enterprise.
In addition, the annual business plan of each syndicate is subject to the review and approval of the Lloyd's Franchise Board, which is responsible for business planning and monitoring for all syndicates.
In addition, the annual business plan of each syndicate is subject to the review and approval of the Lloyd's Franchise Board, which is responsible for business planning and monitoring for all syndicates. Capital adequacy and risk management regulations, referred to as Solvency II, apply to our European Union (E.U.) operations and are enacted by the European Commission.
Capital adequacy and risk management regulations, referred to as Solvency II, apply to our European operations and are enacted by the European Commission, the executive body of the European Union (E.U). Additionally, the International Association of Insurance Supervisors (IAIS) continues to develop capital requirements as more fully discussed below.
Our operations in the U.K. have been subject to the same regulations but are transitioning to a tailored version of Solvency II, known as Solvency UK, developed by the PRA. Additionally, the International Association of Insurance Supervisors (IAIS) continues to develop capital requirements as more fully discussed below.
We gather employee feedback through pulse surveys and routine dialogue with our employee resource groups and leaders from across the enterprise. Our annual talent and succession planning process culminates in a review with leadership of key talent retention and promotion, as well as a review of our succession plans.
Our annual talent and succession planning process culminates in a review with leadership of key talent retention and promotion, as well as a review of our succession plans. We believe that employing individuals with different backgrounds and experiences helps meet the diverse needs of our stakeholders.
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Our performance management cycle seeks to ensure that employees have goals and development plans refreshed regularly and performance review conversations are held between managers and their direct reports throughout the annual performance period. We believe that employing individuals with different backgrounds and experiences helps meet the diverse needs of our stakeholders.
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The public can obtain any documents that we file with the SEC at sec.gov.
Removed
These include a holistic well-being incentive program with resources for both employees and their families, employee mental health assistance programs, and stress management and resilience programs. Available Information We file annual, quarterly and current reports, proxy statements and other documents with the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934 (Exchange Act).
Added
Information on or accessible through our website is not incorporated by reference into this Report. 5 Table of Contents

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIn the U.S., these standards apply specified risk factors to various asset, premium and reserve components of our legal entity statutory basis of accounting financial statements. For IAIGs, such as CNA, the standards also seek to quantify risk across the insurance group in order to assess group capital.
Biggest changeInsurance companies such as ours are subject to capital adequacy standards set by regulators to help identify companies that merit further regulatory attention. In the U.S., these standards apply specified risk factors to various asset, premium and reserve components of our legal entity statutory basis of accounting financial statements.
However, such coverage is subject to a mandatory deductible and other limitations. It is also possible that future legislation could change 7 Table of Contents or eliminate the program, which could adversely affect our business by increasing our exposure to terrorism losses, or by lowering our business volume through efforts to avoid that exposure.
However, such coverage is 7 Table of Contents subject to a mandatory deductible and other limitations. It is also possible that future legislation could change or eliminate the program, which could adversely affect our business by increasing our exposure to terrorism losses, or by lowering our business volume through efforts to avoid that exposure.
We face potential exposure to various types of existing, new and emerging mass tort claims, including those related to exposure to potentially harmful products or substances, such as glyphosate, lead paint, per- and polyfluoroalkyl substances (PFAS) and opioids, sexual abuse and molestation claims, claims arising from changes that expand the right to sue, remove limitations on recovery, extend the statutes of limitations or otherwise repeal or weaken tort reforms, such as those related to abuse reviver statutes, including New York reviver statutes; and claims related to new and emerging theories of liability, such as those related to global warming and climate change.
We face potential exposure to various types of existing, new and emerging mass tort claims, including those related to exposure to potentially harmful products or substances, such as glyphosate, lead paint, per- and polyfluoroalkyl substances (PFAS) and opioids, sexual abuse and molestation claims, claims arising from changes that expand the right to sue, remove limitations on recovery, extend the statutes of limitations or otherwise repeal or weaken tort reforms, such as those related to abuse reviver statutes; and claims related to new and emerging theories of liability, such as those related to global warming and climate change.
In addition, because our and our vendors' information technology and telecommunications systems interface with and depend on third-party systems, we could experience service denials if demand for such service exceeds capacity or a third-party system fails or experiences an interruption. If sustained or repeated, such events could result in a deterioration of our ability to perform necessary business functions.
In addition, because our and our vendors' information technology, telecommunications and other systems interface with and depend on third-party systems, we could experience service denials if demand for such service exceeds capacity or a third-party system fails or experiences an interruption. If sustained or repeated, such events could result in a deterioration of our ability to perform necessary business functions.
In addition, longer-term natural catastrophe trends may be changing and new types of catastrophe losses may be developing due to climate change, its associated extreme weather events linked to rising temperatures and its effects on global weather patterns, greenhouse gases, sea, land and air temperatures, sea levels, rain, drought, hail and snow.
In addition, longer-term natural catastrophe trends may be changing and new types of, and heightened, catastrophe losses may be developing due to climate change, its associated extreme weather events linked to rising temperatures and its effects on global weather patterns, greenhouse gases, sea, land and air temperatures, sea levels, rain, drought, hail and snow.
ITEM 1A. RISK FACTORS Our business faces many risks and uncertainties. These risks and uncertainties could lead to events or circumstances that have a material adverse effect on our results of operations, equity, business and insurer financial strength and corporate debt ratings. We have described below material risks that we face.
ITEM 1A. RISK FACTORS Our business faces many risks and uncertainties. These risks and uncertainties could lead to events or circumstances that have a material adverse effect on our results of operations, equity, business, financial condition and insurer financial strength and corporate debt ratings. We have described below material risks that we face.
We are subject to the uncertain effects of emerging and potential claims and coverage issues that arise as industry practices and legal, judicial, geopolitical, social, economic and other environmental conditions change. Further, the impact of social inflation continues to be significant and the trajectory of its future impact remains uncertain.
We are subject to the uncertain effects of emerging and potential claims and coverage issues that arise as industry practices and legal, judicial, social, economic, geopolitical and other environmental conditions change. The impact of social inflation continues to be significant, and the trajectory of its future impact remains uncertain.
While we do not believe such breaches that have occurred and resultant actions will have a material adverse effect on our business, these or similar incidents, or any other such breach of our or our vendors’ data security infrastructure could have a material adverse effect on our business, results of operations and financial condition.
While we do not believe breaches that have occurred and resultant actions will have a material adverse effect on our business, these or similar incidents, or any other breach of our or our vendors’ data security infrastructure could have a material adverse effect on our business, results of operations and financial condition.
Loews beneficially owned approximately 92% of our outstanding shares of common stock as of December 31, 2024, and is in a position to control actions that require the consent of stockholders, including the election of directors, amendment of our Restated Certificate of Incorporation and any merger or sale of substantially all of our assets.
Loews beneficially owned approximately 92% of our outstanding shares of common stock as of December 31, 2025, and is in a position to control actions that require the consent of stockholders, including the election of directors, amendment of our Restated Certificate of Incorporation and any merger or sale of substantially all of our assets.
It can take a long time for the ultimate cost of any catastrophe losses to us to be finally determined, as a multitude of factors contribute to such costs, including evaluation of general liability and pollution exposures, infrastructure disruption, business interruption and reinsurance collectibility.
It can take a long time for the ultimate cost of any catastrophe losses to us to be finally determined, as a multitude of factors contribute to such costs, including evaluation of general liability and pollution exposures, infrastructure disruption, business interruption and reinsurance collectability.
Our, or our vendors', facilities and systems could become unavailable, inoperable, or otherwise impaired from a variety of causes, including natural events, such as hurricanes, tornadoes, windstorms, earthquakes, severe winter weather and fires, or other events, such as explosions, terrorist attacks, computer security breaches or cyber-attacks, riots, hazardous material releases, medical epidemics or pandemics, utility outages, interruptions of data processing and storage systems or unavailability of communications facilities or systems.
Our, or our vendors', facilities and systems could become unavailable, inoperable, or otherwise impaired from a variety of causes, including natural events, such as hurricanes, tornadoes, windstorms, earthquakes, severe 11 Table of Contents winter weather and fires, or other events, such as explosions, terrorist attacks, computer security breaches or cyber-attacks, riots, hazardous material releases, medical epidemics or pandemics, utility outages, interruptions of data processing and storage systems or unavailability of communications facilities or systems.
The availability and cost of the reinsurance protection we purchase, which affects the volatility and profitability of our business, as well as the level and types of risk we retain, is determined by many factors, including general economic 9 Table of Contents conditions and conditions in the reinsurance market, such as the occurrence of significant reinsured events or unexpected adverse trends, including those associated with climate change.
The availability and cost of the reinsurance protection we purchase, which affects the volatility and profitability of our business, as well as the level and types of risk we retain, is determined by many factors, including general economic conditions and conditions in the reinsurance market, such as the occurrence of significant reinsured events or unexpected adverse trends, including those associated with climate change.
Our efforts or the efforts of agents and brokers with respect to new products or alternate distribution channels, as well as changes in the way agents and brokers utilize greater levels of data and technology, including artificial intelligence, could adversely impact our business relationship with independent agents and brokers who currently market our products, resulting in a lower volume and/or profitability of business generated from these sources.
Our efforts or the efforts of agents and brokers with respect to new products or alternate distribution channels, as well as changes in the way agents and brokers utilize greater levels of data and technology, including AI, could adversely impact our business relationship with independent agents and brokers who currently market our products, resulting in a lower volume and/or profitability of business generated from these sources.
Our future policy benefit reserves for long-term care policies are based on our best estimate actuarial assumptions, which are assessed quarterly and updated at least annually. Key actuarial assumptions include morbidity, persistency, anticipated future premium rate increases and expenses. The adequacy of the reserves is contingent upon actual experience and our future expectations related to these key assumptions.
Our future policy benefit reserves for long-term care policies are based on our best estimate actuarial assumptions, which are assessed quarterly and updated at least annually. Key actuarial assumptions include morbidity, persistency, premium rate actions and expenses. The adequacy of the reserves is contingent upon actual experience and our future expectations related to these key assumptions.
In addition, and as of January 1, 2025 three officers of Loews, including the CEO of Loews (who is also a director of Loews), along with one additional director of Loews (who is also the Chairman of the Board of Loews) and one director emeritus of Loews, serve on our Board of Directors.
In addition, as of January 1, 2026 three officers of Loews, including the CEO of Loews (who is also a director of Loews), along with one additional director of Loews (who is also the Chairman of the Board of Loews) and one director emeritus of Loews, serve on our Board of Directors.
The shut-down or unavailability of one or more of our or our vendors’ systems or facilities for these or any other reasons could significantly impair our ability to perform critical business functions in a timely basis.
The shut-down or unavailability of one or more of our or our vendors’ systems or facilities for these or any other reasons could significantly impair our ability to perform critical business functions on a timely basis.
The modeled outputs and related analyses from both proprietary models and third parties are subject to various assumptions, uncertainties, model design errors and the inherent 11 Table of Contents limitations of any statistical analysis. Further, climate change may make modeled outcomes less certain or produce new, non-modeled risks.
The modeled outputs and related analyses from both proprietary models and third parties are subject to various assumptions, uncertainties, model design errors and the inherent limitations of any statistical analysis. Further, climate change may make modeled outcomes less certain or produce new, non-modeled risks.
As a result, we would need to pursue other sources of capital which may be more expensive or may not be available at all. 14 Table of Contents Rating agencies may downgrade their ratings of us, thereby adversely affecting our ability to write insurance at competitive rates or at all and increasing our cost of capital.
As a result, we would need to pursue other sources of capital which may be more expensive or may not be available at all. Rating agencies may downgrade their ratings of us, thereby adversely affecting our ability to write insurance at competitive rates or at all and increasing our cost of capital.
In addition, rules and regulations are being introduced, or are being considered, in the areas of artificial intelligence, information security and climate change, which may also affect our business. We also are subject to numerous regulations governing the protection of personal and confidential information of our customers and employees, including medical records, credit card data and financial information.
In addition, rules and regulations are being introduced, or are being considered, in the areas of AI, information security and climate change, which may also affect our business. We also are subject to numerous regulations governing the protection of personal and confidential information of our customers and employees, including medical records, credit card data and financial information.
Portions of our insurance business is underwritten and serviced by third parties. With respect to underwriting, our contractual arrangements with third parties will typically grant them limited rights to write new and renewal policies, subject to contractual restrictions and obligations, including requiring them to underwrite within the 13 Table of Contents terms of our licenses.
Portions of our insurance business is underwritten and serviced by third parties. With respect to underwriting, our contractual arrangements with third parties will typically grant them limited rights to write new and renewal policies, subject to contractual restrictions and obligations, including requiring them to underwrite within the terms of our licenses.
On August 31, 2010, we completed a retroactive reinsurance transaction under which substantially all of our legacy A&EP liabilities were ceded to National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc., subject to an aggregate limit of $4 billion (Loss Portfolio Transfer). The cumulative amount ceded under the Loss Portfolio Transfer as of December 31, 2024 was $3.7 billion.
On August 31, 2010, we completed a retroactive reinsurance transaction under which substantially all of our legacy A&EP liabilities were ceded to National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc., subject to an aggregate limit of $4 billion (Loss Portfolio Transfer). The cumulative amount ceded under the Loss Portfolio Transfer as of December 31, 2025 was $3.9 billion.
Breaches have occurred, and may occur again, in our systems and in the systems of our vendors and third-party administrators, both current and 12 Table of Contents former, in that past vendors and third-party administrators may still retain certain confidential and sensitive information in their systems.
Breaches have occurred, and may occur again, in our systems and in the systems of our vendors and third-party administrators, both current and former, in that past vendors and third-party administrators may still retain certain confidential and sensitive information in their systems.
Technological changes in the way insurance transactions are completed in the marketplace, and our ability to react effectively to such change, may present significant competitive risks. For example, more insurers are utilizing or may begin utilizing "big data" analytics or artificial intelligence to make underwriting or other decisions that impact product design and pricing.
Technological changes in the way insurance transactions are completed in the marketplace, and our ability to react effectively to such change, may present significant competitive risks. For example, more insurers are utilizing or may begin utilizing "big data" analytics or artificial intelligence (AI) to make underwriting or other 9 Table of Contents decisions that impact product design and pricing.
Catastrophe losses are an inevitable part of our business. Various events can cause catastrophe losses. These events can be natural or man-made, and may include hurricanes, tornadoes, windstorms, earthquakes, hail, severe winter weather, droughts, fires, floods, riots, strikes, civil unrest, cyber-attacks, pandemics and acts of terrorism. The frequency and severity of these catastrophe events are inherently unpredictable.
These events can be natural or man-made, and may include hurricanes, tornadoes, windstorms, earthquakes, hail, severe winter weather, droughts, fires, floods, riots, strikes, civil unrest, cyber-attacks, pandemics and acts of terrorism. The frequency and severity of these catastrophe events are inherently unpredictable.
Breaches could affect our data framework or cause a failure to protect the personal information of our customers, claimants or employees, or sensitive and confidential information regarding our business or policyholders and may result in operational impairments and financial losses, significant harm to our reputation and the loss of business with existing or potential customers.
Breaches that affect our data security infrastructure or our vendors' facilities or systems, may cause a failure to protect the personal information of our customers, claimants or employees, or sensitive and confidential information regarding our business or policyholders and may result in operational impairments and financial losses, significant harm to our reputation and the loss of business with existing or potential customers.
These charges could be substantial. Additionally, if the A&EP claims exceed the limit of the Loss Portfolio Transfer, we will need to assess whether to purchase additional limit or to reassume claim handling responsibility for A&EP claims from an affiliate of NICO.
These charges could be substantial. Additionally, if the A&EP claims exceed the limit of the Loss Portfolio Transfer, we will need to assess whether to purchase additional limit or to reassume claim handling responsibility for A&EP claims from an affiliate of NICO. Any additional reinsurance premium or future claim handling costs would also reduce our earnings.
In addition, we may not receive regulatory approval for the level of premium rate increases we request. Any adverse deviation between the level of future premium rate increases approved and the level included in our reserving assumptions may require an increase to our reserves. We are vulnerable to material losses from natural and man-made disasters.
In addition, we may not receive regulatory approval for the level of premium rate increases we request. Any adverse deviation between the level of premium rate actions approved and the level included in our reserving assumptions may require an increase to our reserves.
The valuation of investments is more subjective when markets are illiquid, thereby increasing the risk that the estimated fair value (i.e., the carrying amount) of the portion of our investment portfolio that is carried at fair value in our financial statements is not reflective of the prices at which actual transactions could occur.
The valuation of investments is more subjective when markets are illiquid, thereby increasing the risk that the estimated fair value (i.e., the carrying amount) of the portion of our investment portfolio that is carried at fair value in our financial statements is not reflective of the prices at which actual transactions could occur. 10 Table of Contents We have significant holdings in fixed maturity investments that are sensitive to changes in interest rates.
Any additional reinsurance premium or future claim handling costs would also reduce our earnings. 8 Table of Contents We are exposed to, and may face adverse developments related to, mass tort claims that could arise from, among other things, our insureds’ sale or use of potentially harmful products or substances, changes to the social and legal environment, such as those related to abuse reviver statutes, issues related to altered interpretation of coverage and other new and emerging claim theories.
We are exposed to, and may face adverse developments related to, mass tort claims that could arise from, among other things, our insureds’ sale or use of potentially harmful products or substances, claims of sexual abuse and molestation against our insureds and changes to the social and legal environment, such as those related to abuse reviver statutes, issues related to altered interpretation of coverage and other new and emerging claim theories.
Current rules, including those promulgated by insurance regulators and specialized markets, such as Lloyd's, require companies to maintain statutory capital and surplus at a specified minimum level determined using the applicable jurisdiction's regulatory capital adequacy formula.
For IAIGs, such as CNA, the standards also seek to quantify risk across the insurance group in order to assess group capital. Current rules, including those promulgated by insurance regulators and specialized markets, such as Lloyd's, require companies to maintain statutory capital and surplus at a specified minimum level determined using the applicable jurisdiction's regulatory capital adequacy formula.
If such utilization is more effective than how we use our data and information, we will be at a competitive disadvantage. There can be no assurance that we will continue to compete effectively with our industry peers due to technological changes; accordingly, this may have a material adverse effect on our business, results of operations and financial condition.
There can be no assurance that we will continue to compete effectively with our industry peers due to technological changes; accordingly, this may have a material adverse effect on our business, results of operations and financial condition.
It is possible that potential conflicts of interest could arise in the future for our directors who are also officers and/or directors of Loews with respect to a number of areas relating to the past and ongoing relationships of Loews and us, including tax and insurance matters, financial commitments and sales of common stock pursuant to registration rights or otherwise. 10 Table of Contents Financial Risks We may incur significant realized and unrealized investment losses and volatility in net investment income arising from changes in the financial markets.
It is possible that potential conflicts of interest could arise in the future for our directors who are also officers and/or directors of Loews with respect to a number of areas relating to the past and ongoing relationships of Loews and us, including tax and insurance matters, financial commitments and sales of common stock pursuant to registration rights or otherwise.
Any imposition of significant tariffs by the U.S., as well as any related retaliatory tariffs, may result in considerable increases in certain costs that would increase the cost of claims.
Further, broader economic and geopolitical conditions, including the imposition of significant tariffs by the U.S., as well as any related retaliatory tariffs, may result in considerable increases in certain costs that would increase loss costs.
We are subject to extensive existing state, local, federal and foreign governmental regulations that restrict our ability to do business and generate revenues; additional regulation or significant modification to existing regulations or failure to comply with regulatory requirements may have a materially adverse effect on our business, results of operations and financial condition.
For further discussion of our ratings, see the Ratings subsection within the Liquidity and Capital Resources section of MD&A in Item 7. 14 Table of Contents We are subject to extensive existing state, local, federal and foreign governmental regulations that restrict our ability to do business and generate revenues; additional regulation or significant modification to existing regulations or failure to comply with regulatory requirements may have a materially adverse effect on our business, results of operations and financial condition.
Further, the increasing use of artificial intelligence, both within our systems to achieve operational efficiencies and within threat actors’ attack strategies, may further expose our systems to the risk of cyber-attacks.
Further, the increasing use of AI within our systems and those of our vendors and third-party administrators to achieve operational efficiencies and within threat actors’ attack strategies, may further expose our systems or those of our vendors and third-party administrators to the risk of cyber-attacks.
Further, should we experience future cyber incidents, or should industry trends drive rate increases resulting from growth in volume and significance of cyber incidents broadly, we may incur higher costs for cybersecurity insurance coverage.
In addition, potential disputes with our insurers about the availability of insurance coverage could occur. 12 Table of Contents Further, should we experience future cyber incidents, or should industry trends drive rate increases resulting from growth in volume and significance of cyber incidents broadly, we may incur higher costs for cybersecurity insurance coverage.
Our or our third-party service providers' controls may not be able to detect all possible circumstances of such noncompliant activity and the internal structures in place to prevent this activity may not be effective in all cases. Any losses relating to such non-compliant activity could materially adversely affect our business, results of operations and financial condition.
Our or our third-party service providers' controls may not be able to detect all possible circumstances of such noncompliant activity and the internal structures in place to prevent this activity may not be effective in all cases.
In addition, it is possible that a significant lowering of the corporate debt ratings of Loews by certain of the rating agencies could result in an adverse effect on our ratings, independent of any change in our circumstances. For further discussion of our ratings, see the Ratings subsection within the Liquidity and Capital Resources section of MD&A in Item 7.
In addition, it is possible that a significant lowering of the corporate debt ratings of Loews by certain of the rating agencies could result in an adverse effect on our ratings, independent of any change in our circumstances.
Our inability to provide for appropriate servicing if a vendor becomes unable to fulfill its contractual obligations to us, either through transitioning to another service provider temporarily or permanently or assuming servicing internally, may have a materially adverse effect on our business, results of operations and financial condition.
Our inability to provide for appropriate servicing if a vendor becomes unable to fulfill its contractual obligations to us, either through transitioning to another service provider temporarily or permanently or assuming servicing internally, may have a materially adverse effect on our business, results of operations and financial condition. 13 Table of Contents We are subject to capital adequacy requirements and, if we are unable to maintain or raise sufficient capital to meet these requirements, regulatory agencies may restrict or prohibit us from operating our business.
Each jurisdiction dictates the types of insurance and the level of coverage that must be provided to such involuntary risks. Our share of these involuntary risks is mandatory and generally a function of our respective share of the voluntary market by line of insurance in each jurisdiction. 16 Table of Contents
Our share of these involuntary risks is mandatory and generally a function of our respective share of the voluntary market by line of insurance in each jurisdiction. 15 Table of Contents
Although we maintain cybersecurity insurance coverage insuring against costs resulting from cyber-attacks (including the March 2021 attack), we do not expect the amount available under our coverage policy to cover all losses from cyber-attacks. In addition, potential disputes with our insurers about the availability of insurance coverage could occur.
Although we maintain cybersecurity insurance coverage insuring against costs resulting from cyber-attacks, we do not expect the amount available under our coverage policy to cover all potential losses from cyber-attacks.
Evolving judicial interpretations and new legislation regarding the application of various tort theories and defenses, including application of various theories of joint and several liability, as well as the application of insurance coverage to these claims, give rise to new and potentially more severe claim activity.
Evolving judicial interpretations, increased participation by plaintiff's lawyers in insurance claims, rising litigation activity, higher monetary verdicts, abusive litigation practices, the growth of third-party litigation financing and new legislation regarding the application of various tort theories and defenses, including application of various theories of joint and several liability, as well as the application of insurance coverage to these claims, give rise to new and potentially more severe claim activity.
We have exposures related to asbestos and environmental pollution (A&EP) claims, which could result in material losses. Our property and casualty insurance subsidiaries have exposures related to A&EP claims.
Accordingly, catastrophic events could have a material adverse effect on our business, results of operations, financial condition and liquidity. We have exposures related to asbestos and environmental pollution (A&EP) claims, which could result in material losses. Our property and casualty insurance subsidiaries have exposures related to A&EP claims.
The jurisdictions in which we do business may also require us to provide coverage to persons whom we would not otherwise 15 Table of Contents consider eligible or restrict us from withdrawing from unprofitable lines of business or unprofitable market areas.
The jurisdictions in which we do business may also require us to provide coverage to persons whom we would not otherwise consider eligible or restrict us from withdrawing from unprofitable lines of business or unprofitable market areas. Each jurisdiction dictates the types of insurance and the level of coverage that must be provided to such involuntary risks.
Similar and continuing mass tort claim activity, including activity based on changing judicial interpretations and recent and proposed legislation, could have a material adverse effect on our business, results of operations and financial condition.
Similar and continuing mass tort claim activity, including activity based on changing judicial interpretations and recent and proposed legislation, could have a material adverse effect on our business, results of operations and financial condition. 8 Table of Contents Strategic Risks We face intense competition in our industry; we may be adversely affected by the cyclical nature of the property and casualty business and by the evolving landscape of our distribution network.
Strategic Risks We face intense competition in our industry; we may be adversely affected by the cyclical nature of the property and casualty business and by the evolving landscape of our distribution network. All aspects of the insurance industry are highly competitive and we must continuously allocate resources to refine and improve our insurance products and services to remain competitive.
All aspects of the insurance industry are highly competitive and we must continuously allocate resources to refine and improve our insurance products and services to remain competitive.
Our investment portfolio is exposed to various risks, such as interest rate, credit spread, issuer default, equity prices and foreign currency, which are unpredictable. Financial markets are highly sensitive to changes in economic conditions, monetary policies, tax policies, interest rates, domestic and international geopolitical issues and many other factors.
Financial markets are highly sensitive to changes in economic conditions, monetary policies, tariff policies, tax policies, interest rates, domestic and international geopolitical issues and many other factors.
Removed
Accordingly, catastrophic events could have a material adverse effect on our business, results of operations, financial condition and liquidity. The COVID-19 pandemic, including new or emerging variants, other potential pandemics and related measures to mitigate the spread of the foregoing may continue to have adverse impacts on our business, results of operations and financial condition and could be material.
Added
Further, and as noted in the previous risk factor, the increasingly adverse impact of social inflation, particularly with respect to legal activity and judicial decisions, may impact our long-term care portfolio and reserves. We are vulnerable to material losses from natural and man-made disasters. Catastrophe losses are an inevitable part of our business. Various events can cause catastrophe losses.
Removed
We have experienced, and may continue to experience, claim submissions and litigation related to denial of claims based on policy coverage or the facts of the claim, in certain lines of business that are implicated by the COVID-19 pandemic and mitigating actions taken by our customers and governmental authorities in response to its spread.
Added
If such utilization by our industry peers is more effective than how we use our data and information, including through our own use of AI, we will be at a competitive disadvantage.
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These lines include primarily commercial property related business interruption coverage, healthcare professional liability, management liability (directors and officers, employment practices and professional liability lines) and workers' compensation. We recorded significant losses during 2020, a portion of which remain classified as incurred but not reported (IBNR) reserves, in these areas and may experience continued losses, which could be material.
Added
Further, our business could be affected as our policyholders adopt AI technologies. Policyholder use of AI could introduce novel exposures that may result in new or increased claims. Widespread adoption of AI could fundamentally disrupt entire industries, which could impact the demand for certain products.
Removed
Increased frequency or severity in any or all of the foregoing lines, or others where the exposure has yet to emerge, relating to long-term effects of COVID-19, new or emerging variants, or other potential pandemics, and related measures to mitigate the spread of the foregoing, may have a material impact on our business, results of operations and financial condition.
Added
Financial Risks We may incur significant realized and unrealized investment losses and volatility in net investment income arising from changes in the financial markets. Our investment portfolio is exposed to various risks, such as interest rate, credit spread, issuer default, equity prices and foreign currency, which are unpredictable.
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We have incurred and may continue to incur substantial expenses related to litigation activity in connection with COVID-related legal claims. These actions primarily relate to denial of claims submitted as a result of the pandemic and the mitigating actions taken, including lockdowns and closing of certain businesses.
Added
During the fourth quarter of 2025, we were notified of a data breach impacting a vendor of a business associate of our current employee health insurance administrator. The breach was traced to compromised credentials leveraged by a threat actor, with the impacted vendor shutting down and rebuilding the affected environment upon discovery of the breach.
Removed
The significance of such litigation or any other litigation relating to new or emerging variants of COVID-19 or other potential pandemics and related measures to mitigate the spread of the foregoing, both in substance and volume, and the resultant Company-initiated activities, including external counsel engagement, and the costs related thereto, may have a material impact on our business, results of operations and financial condition.
Added
Following a forensics analysis, it was determined that a substantial number of our employees (and dependents of employees) were impacted. We understand that the subject vendor will be providing required breach notifications to all impacted individuals.
Removed
Any imposition of significant tariffs by the U.S., as well as any related retaliatory tariffs, may adversely impact the general economy and the financial markets, and adversely affect the valuation of our investments.
Added
When new technologies, such as AI, are incorporated into our or our third-party service providers' processes, they may introduce additional complexity and present greater risk to the effectiveness of these controls. For example, generative AI systems may "hallucinate" producing inaccurate or misleading information, and model performance may degrade over time, leading to flawed recommendations.
Removed
We have significant holdings in fixed maturity investments that are sensitive to changes in interest rates.
Added
AI models may perpetuate or amplify biases present in underlying data, which could result in discriminatory or unfair outcomes in areas such as underwriting and claims.
Removed
An interruption in our system availability occurred in March 2021 as a result of a cybersecurity attack we sustained. Please refer to the immediately following risk factor for further information regarding this incident.
Added
The potential for employees or third-party service providers, through intentional or inadvertent actions, to enable AI models to be trained on our data or our insureds' data introduces risks of unauthorized use or disclosure of sensitive information and erosion of data privacy. AI may also be used to perpetuate fraud, or to manipulate or evade monitoring and detection controls.
Removed
During the third quarter of 2024, we were notified of a data breach resulting from a ransomware attack that impacted a former vendor. This incident resulted in required breach notifications to our impacted long term care policyholders, with such notifications made by the subject vendor.
Removed
In the same quarter, we were notified of a data breach resulting from a ransomware attack that impacted a current vendor. This incident resulted in required breach notifications to impacted individuals, which included insurance claimants and their representatives, with such notifications made by the subject vendor.
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As previously disclosed, we sustained a sophisticated cybersecurity attack in March 2021 involving ransomware that caused a network disruption and impacted certain of our systems. Our investigation into the incident revealed that an unauthorized third party copied some personal information relating to certain current and former employees, contract workers and their dependents and certain other persons, including some policyholders.
Removed
Although we currently have no indication that the impacted data has been misused, or that CNA or its policyholder data was specifically targeted by the unauthorized third party, we may be subject to subsequent investigations, claims or actions in addition to other costs, fines, penalties, or other obligations related to impacted data, whether or not such data is misused.
Removed
In addition, the misuse, or perceived misuse, of sensitive or confidential information regarding our business or policyholders could cause harm to our reputation and result in the loss of business with existing or potential customers, which could adversely impact our business, results of operations and financial condition.
Removed
We are subject to capital adequacy requirements and, if we are unable to maintain or raise sufficient capital to meet these requirements, regulatory agencies may restrict or prohibit us from operating our business. Insurance companies such as ours are subject to capital adequacy standards set by regulators to help identify companies that merit further regulatory attention.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThreats of security incidents and the impact of actual security incidents are initially assessed and managed by the CSO and CIO as described above. CNA has further implemented response plans that provide the basis for appropriate response to an unauthorized occurrence from a technical perspective, as well as from disclosure and regulatory perspectives.
Biggest changeCNA has further implemented response plans that provide the basis for appropriate response to an unauthorized occurrence from a technical perspective, as well as from disclosure and regulatory perspectives. These response plans also set forth the processes for internal reporting of a substantive unauthorized occurrence.
This group also analyzes unauthorized occurrences affecting CNA's or third parties’ IT systems or sensitive information, and directs the activities of CNA in responding to such incidents. 17 Table of Contents In addition, the group, under the leadership of the CCO, undertakes the appropriate internal notifications of any such occurrence, and responsive activities, to the General Counsel, Chief Executive Officer, Chief Financial Officer and Board of Directors, with executive management involvement in the same to the extent appropriate in the context of the nature of such occurrence.
This group also analyzes unauthorized occurrences affecting CNA's or third parties’ IT systems or sensitive information, and directs the activities of CNA in responding to such incidents. 16 Table of Contents In addition, the group, under the leadership of the CCO, undertakes the appropriate internal notifications of any such occurrence, and responsive activities, to the General Counsel, Chief Executive Officer, Chief Financial Officer and Board of Directors, with executive management involvement in the same to the extent appropriate in the context of the nature of such occurrence.
These programs include processes implemented within our third-party risk management unit designed to identify, mitigate and monitor cybersecurity risk relating to vendors, suppliers and external partners who have access to our confidential information or our information systems. CNA engages both internal auditors and third-party information security experts in connection with reviewing such foregoing processes. CNA monitors information security metrics globally.
These programs include processes implemented within our third-party risk management unit designed to identify, mitigate and monitor cybersecurity risk relating to vendors, suppliers and external partners who have access to our confidential information or our information systems. CNA engages both internal auditors and third-party information security experts in connection with reviewing the foregoing processes. CNA monitors information security metrics globally.
Prior to joining CNA, our CIO served in a variety of roles at another major U.S. insurance company, both in business and technology, and has over 20 years of experience working with major U.S. Property & Casualty insurers.
Prior to joining CNA, our CIO served in a variety of roles at another major U.S. insurance company, both in business and technology, and has over 20 years of experience working with major U.S. Property & Casualty insurers. Threats of security incidents and the impact of actual security incidents are initially assessed and managed by the CSO and CIO.
These response plans also set forth the processes for internal reporting of a substantive unauthorized occurrence. The CSO reports such matters to the CIO and CCO, who is responsible for convening a team of cross-enterprise leaders to ensure comprehensive responsiveness to an occurrence.
The CSO reports such matters to the CIO and CCO, who is responsible for convening a team of cross-enterprise leaders to ensure comprehensive responsiveness to an occurrence.
The CSO leads the Information Security group within Information Technology, which manages the controls designed to identify, detect, protect against, respond to and recover from cybersecurity threats and cybersecurity incidents.
The CSO leads the Information Security group within Information Technology, which manages the controls designed to identify, detect, protect against, respond to and recover from cybersecurity threats and cybersecurity incidents. This group includes a cyber defense team that is responsible for information technology security monitoring and incident response activities, including the response coordination to cyber-attacks.
Removed
This group includes a cybersecurity operations team that is responsible for information technology security monitoring and incident response activities, the latter covering the response coordination to cyber-attacks under the leadership and pursuant to the direction of the CSO.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeITEM 2. PROPERTIES We lease our principal executive offices in Chicago, Illinois, as well as other offices throughout the U.S, including in New York. We also lease offices in Canada, the U.K., Belgium, Denmark, France, Germany, Italy, Luxembourg and the Netherlands, primarily for branch and insurance business operations in those locations.
Biggest changeITEM 2. PROPERTIES We lease our principal executive offices in Chicago, Illinois, as well as other offices throughout the U.S., including in New York. We also lease offices in Canada, the U.K., Belgium, Denmark, France, Germany, Italy, Luxembourg and the Netherlands. We consider our properties to be in generally good condition and suitable to carry on our business.
Removed
We consider our properties to be in generally good condition and suitable to carry on our business.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeOur Board of Directors has approved an authorization to purchase, in the open market or through privately negotiated transactions, our outstanding common stock, as our management deems appropriate. No repurchases of our common stock were made in the three months ended December 31, 2024.
Biggest changeWe had 698 stockholders of record as of February 6, 2026 according to the records maintained by our transfer agent. Our Board of Directors has approved an authorization to purchase, in the open market or through privately negotiated transactions, our outstanding common stock, as our management deems appropriate.
The graph assumes that the value of the investment in our common stock and each index was $100 at the base period, January 1, 2020, and that dividends, if any, were reinvested in the stock or index.
The graph assumes that the value of the investment in our common stock and each index was $100 at the base period, January 1, 2021, and that dividends, if any, were reinvested in the stock or index.
The following graph compares the five-year total return of our common stock, the Standard & Poor's 500 (S&P 500) Index and the S&P 500 Property & Casualty Insurance Index.
No repurchases of our common stock were made in the three months ended December 31, 2025. The following graph compares the five-year total return of our common stock, the Standard & Poor's 500 (S&P 500) Index and the S&P 500 Property & Casualty Insurance Index.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the New York Stock Exchange and the Chicago Stock Exchange under the symbol CNA.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the New York Stock Exchange and the NYSE Texas under the symbol CNA. As of February 6, 2026, we had 270,673,371 shares of common stock outstanding and approximately 92% of our outstanding common stock was owned by Loews.
Company / Index Base Period 2020 2021 2022 2023 2024 CNA Financial Corporation $ 100.00 $ 94.61 $ 112.59 $ 116.86 $ 125.18 $ 155.21 S&P 500 Index 100.00 118.40 152.39 124.79 157.59 197.02 S&P 500 Property & Casualty Insurance Index 100.00 106.96 127.58 151.65 168.05 227.67 19 Table of Contents
Company / Index Base Period 2021 2022 2023 2024 2025 CNA Financial Corporation $ 100.00 $ 119.00 $ 123.52 $ 132.31 $ 164.05 $ 175.31 S&P 500 Index 100.00 128.71 105.40 133.10 166.40 196.16 S&P 500 Property & Casualty Insurance Index 100.00 119.28 141.79 157.12 212.86 234.32 18 Table of Contents
Removed
As of February 7, 2025, we had 270,861,659 shares of common stock outstanding and approximately 92% of our outstanding common stock was owned by Loews. We had 730 stockholders of record as of February 7, 2025 according to the records maintained by our transfer agent.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

110 edited+22 added−44 removed113 unchanged
Biggest changeThe following tables present a reconciliation of net income to underwriting gain (loss) and underlying underwriting gain (loss): Year ended December 31, 2024 Specialty Commercial International Property & Casualty (In millions) Net income (loss) $ 663 $ 658 $ 153 $ 1,474 Net investment losses (gains), after tax 31 44 — 75 Core income (loss) $ 694 $ 702 $ 153 $ 1,549 Less: Net investment income 626 733 131 1,490 Non-insurance warranty revenue (expense) 62 — — 62 Other revenue (expense), including interest expense (53) (14) (10) (77) Income tax (expense) benefit on core income (loss) (190) (188) (44) (422) Underwriting gain (loss) 249 171 76 496 Effect of catastrophe losses — 318 40 358 Effect of favorable development-related items (8) — (6) (14) Underlying underwriting gain $ 241 $ 489 $ 110 $ 840 Year ended December 31, 2023 Specialty Commercial International Property & Casualty (In millions) Net income (loss) $ 666 $ 594 $ 147 $ 1,407 Net investment losses (gains), after tax 42 58 (2) 98 Core income (loss) $ 708 $ 652 $ 145 $ 1,505 Less: Net investment income 558 645 103 1,306 Non-insurance warranty revenue (expense) 80 — — 80 Other revenue (expense), including interest expense (52) (1) 4 (49) Income tax (expense) benefit on core income (loss) (195) (174) (48) (417) Underwriting gain (loss) 317 182 86 585 Effect of catastrophe losses — 207 29 236 Effect of (favorable) unfavorable development-related items (12) (4) 13 (3) Underlying underwriting gain $ 305 $ 385 $ 128 $ 818 33 Table of Contents Specialty Specialty provides management and professional liability and other coverages through property and casualty products and services using a network of brokers, independent agencies and managing general underwriters.
Biggest changeThe following tables present reconciliations of net income to core income, underwriting gain and underlying underwriting gain for our Property & Casualty Operations: Year ended December 31, 2025 Specialty Commercial International Property & Casualty (In millions) Net income $ 615 $ 788 $ 205 $ 1,608 Net investment losses, after tax 22 32 2 56 Core income $ 637 $ 820 $ 207 $ 1,664 Less: Net investment income 650 775 156 1,581 Non-insurance warranty revenue (expense) 51 — — 51 Other revenue (expense), including interest expense (55) (12) 13 (54) Income tax expense on core income (173) (215) (77) (465) Underwriting gain 164 272 115 551 Effect of catastrophe losses — 217 23 240 Effect of unfavorable (favorable) development-related items 37 52 (25) 64 Underlying underwriting gain $ 201 $ 541 $ 113 $ 855 Year ended December 31, 2024 Specialty Commercial International Property & Casualty (In millions) Net income $ 663 $ 658 $ 153 $ 1,474 Net investment losses, after tax 31 44 — 75 Core income $ 694 $ 702 $ 153 $ 1,549 Less: Net investment income 626 733 131 1,490 Non-insurance warranty revenue (expense) 62 — — 62 Other revenue (expense), including interest expense (53) (14) (10) (77) Income tax expense on core income (190) (188) (44) (422) Underwriting gain 249 171 76 496 Effect of catastrophe losses — 318 40 358 Effect of favorable development-related items (8) — (6) (14) Underlying underwriting gain $ 241 $ 489 $ 110 $ 840 32 Table of Contents The following table presents a reconciliation of net loss to core loss for our Life & Group segment: Years ended December 31 (In millions) 2025 2024 Net loss $ (51) $ (10) Net investment losses (gains), after tax 7 (13) Core loss $ (44) $ (23) The following table presents a reconciliation of net loss to core loss for our Corporate & Other segment: Years ended December 31 (In millions) 2025 2024 Net loss $ (279) $ (505) Net investment losses, after tax 1 2 Pension settlement transaction losses, after tax — 293 Core loss $ (278) $ (210) 33 Table of Contents Specialty Specialty provides management and professional liability and other property and casualty coverages, products and services using a network of retail and wholesale brokers, independent agencies and managing general underwriters.
If an act of terrorism or 29 Table of Contents acts of terrorism result in covered losses exceeding the $100 billion annual industry aggregate limit, Congress would be responsible for determining how additional losses in excess of $100 billion will be paid. 30 Table of Contents CONSOLIDATED OPERATIONS Results of Operations The following table includes the consolidated results of our operations including our financial measure, core income (loss).
If an act of terrorism or acts of terrorism result in covered losses exceeding the $100 billion annual industry aggregate limit, Congress would be responsible for determining how additional losses in excess of $100 billion will be paid. 29 Table of Contents CONSOLIDATED OPERATIONS Results of Operations The following table includes the consolidated results of our operations including our financial measure, core income (loss).
However, the inclusion of case reserves can lead to distortions if changes in case reserving have taken place, and the method typically requires analysis of the same factors that need to be reviewed for the loss ratio and incurred development methods. 24 Table of Contents The frequency times severity method multiplies a projected number of ultimate claims by an estimated ultimate average loss for each accident or policy year to produce ultimate loss estimates.
However, the inclusion of case reserves can lead to distortions if changes in case reserving have taken place, and the method typically requires analysis of the same factors that need to be reviewed for the loss ratio and incurred development methods. 23 Table of Contents The frequency times severity method multiplies a projected number of ultimate claims by an estimated ultimate average loss for each accident or policy year to produce ultimate loss estimates.
Further information on our process for evaluating impairments and expected credit losses is in Note A to the Consolidated Financial Statements included under Item 8. 22 Table of Contents RESERVES - ESTIMATES AND UNCERTAINTIES The level of reserves we maintain represents our best estimate, as of a particular point in time, of what the ultimate settlement and administration of claims will cost based on our assessment of facts and circumstances known at that time.
Further information on our process for evaluating impairments and expected credit losses is in Note A to the Consolidated Financial Statements included under Item 8. 21 Table of Contents RESERVES - ESTIMATES AND UNCERTAINTIES The level of reserves we maintain represents our best estimate, as of a particular point in time, of what the ultimate settlement and administration of claims will cost based on our assessment of facts and circumstances known at that time.
As a result of this variability, our long- 27 Table of Contents term care reserves may be subject to material increases if actual experience develops adversely to our expectations. The table below summarizes the estimated pretax impact on our results of operations from various hypothetical revisions to our liability for future policyholder benefits (LFPB) reserve assumptions.
As a result of this variability, our long-term care reserves may be subject to material increases if actual experience develops adversely to our expectations. 26 Table of Contents The table below summarizes the estimated pretax impact on our results of operations from various hypothetical revisions to our liability for future policyholder benefits (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.
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 premium rate actions.
Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure and management believes some investors may find this measure useful to evaluate our primary operations. See further discussion regarding how we manage our business in Note P to the Consolidated Financial Statements included under Item 8.
Presentation of consolidated core income (loss) is deemed to be a non-GAAP financial measure and management believes some investors may find this measure useful to evaluate our primary operations. See further discussion regarding how we manage our business in Note N to the Consolidated Financial Statements included under Item 8.
Further information on our dividends from subsidiaries is provided in Note N to the Consolidated Financial Statements included under Item 8. Commitments, Contingencies and Guarantees We have various commitments, contingencies and guarantees which arose in the ordinary course of business. The impact of these commitments, contingencies and guarantees should be considered when evaluating our liquidity and capital resources.
Further information on our dividends from subsidiaries is provided in Note M to the Consolidated Financial Statements included under Item 8. Commitments, Contingencies and Guarantees We have various commitments, contingencies and guarantees which arose in the ordinary course of business. The impact of these commitments, contingencies and guarantees should be considered when evaluating our liquidity and capital resources.
See the Reserves - Estimates and Uncertainties section of this MD&A for further information. (5) Does not include investment commitments of approximately $1,660 million related to future capital calls from various third-party limited partnerships, signed and accepted mortgage loan applications, and obligations related to private placement securities.
See the Reserves - Estimates and Uncertainties section of this MD&A for further information. (5) Does not include investment commitments of approximately $1,770 million related to future capital calls from various third-party limited partnerships, signed and accepted mortgage loan applications, and obligations related to private placement securities.
All layers of the treaty provide for one full reinstatement. Group Workers' Compensation Treaty 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.
All layers of the treaty provide for one full reinstatement. Group Workers' Compensation Treaty We also purchased corporate workers' compensation catastrophe excess-of-loss treaty reinsurance for the period January 1, 2026 to January 1, 2027 providing $275 million of coverage for the accumulation of covered losses related to natural catastrophes above our per occurrence retention of $25 million.
Life & Group primarily includes the results of our long-term care business that is in run-off. Corporate & Other primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty businesses in run-off, including CNA Re, A&EP, a legacy portfolio of excess workers' compensation (EWC) policies and certain legacy mass tort reserves.
Life & Group primarily includes the results of our long-term care business that is in run-off. Corporate & Other primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty businesses in run-off, including A&EP, a legacy portfolio of excess workers' compensation (EWC) policies and certain legacy mass tort reserves.
Under the current provisions of the program, in 2025, the federal government will reimburse 80% of our covered losses in excess of our applicable deductible up to a total industry program cap of $100 billion. Our deductible is based on eligible commercial property and casualty earned premiums for the preceding calendar year.
Under the current provisions of the program, in 2026, the federal government will reimburse 80% of our covered losses in excess of our applicable deductible up to a total industry program cap of $100 billion. Our deductible is based on eligible commercial property and casualty earned premiums for the preceding calendar year.
A summary of these risks and specific analysis on changes is included in the Quantitative and Qualitative Disclosures About Market Risk included under Item 7A. 48 Table of Contents LIQUIDITY AND CAPITAL RESOURCES Cash Flows Our primary operating cash flow sources are premiums and investment income.
A summary of these risks and specific analysis on changes is included in the Quantitative and Qualitative Disclosures About Market Risk included under Item 7A. 45 Table of Contents LIQUIDITY AND CAPITAL RESOURCES Cash Flows Our primary operating cash flow sources are premiums and investment income.
(4) The Future policy benefit reserves reflected above are not discounted, include maintenance costs, represent our estimate of the ultimate amount and timing of the settlement of benefits net of expected premiums, and are based on our assessment of facts and circumstances known as of December 31, 2024.
(4) The Future policy benefit reserves reflected above are not discounted, include maintenance costs, represent our estimate of the ultimate amount and timing of the settlement of benefits net of expected premiums, and are based on our assessment of facts and circumstances known as of December 31, 2025.
Short-tail exposures include property, commercial automobile physical damage, marine, surety and 23 Table of Contents warranty. Specialty, Commercial and International contain both long-tail and short-tail exposures. Corporate & Other contains run-off long-tail exposures. Various methods are used to project ultimate losses for both long-tail and short-tail exposures.
Short-tail exposures include property, commercial automobile physical damage, marine, surety and 22 Table of Contents warranty. Specialty, Commercial and International contain both long-tail and short-tail exposures. Corporate & Other contains run-off long-tail exposures. Various methods are used to project ultimate losses for both long-tail and short-tail exposures.
Further information on net prior year loss reserve development is in Note E to the Consolidated Financial Statements included under Item 8. 31 Table of Contents SEGMENT RESULTS The following discusses the results of operations for our business segments.
Further information on net prior year loss reserve development is in Note E to the Consolidated Financial Statements included under Item 8. 30 Table of Contents SEGMENT RESULTS The following discusses the results of operations for our business segments.
The table below reflects the Insurer Financial Strength Ratings of CNA's insurance company subsidiaries issued by A.M. Best, Moody's, S&P and Fitch. The table also includes the ratings for CNAF's senior debt. December 31, 2024 Insurer Financial Strength Ratings Senior Debt Ratings A.M. Best A bbb+ Moody's A2 Baa2 S&P A+ A- Fitch A+ BBB+ A.M.
The table below reflects the Insurer Financial Strength Ratings of CNA's insurance company subsidiaries issued by A.M. Best, Moody's, S&P and Fitch. The table also includes the ratings for CNAF's senior debt. December 31, 2025 Insurer Financial Strength Ratings Senior Debt Ratings A.M. Best A+ a- Moody's A2 Baa2 S&P A+ A- Fitch A+ BBB+ A.M.
We conduct an ongoing review of our risk and catastrophe reinsurance coverages and from time to time make changes as we deem appropriate. The following discussion summarizes our most significant catastrophe reinsurance coverage at January 1, 2025.
We conduct an ongoing review of our risk and catastrophe reinsurance coverages and from time to time make changes as we deem appropriate. The following discussion summarizes our most significant catastrophe reinsurance coverage at January 1, 2026.
The underlying loss ratio excludes the impact of catastrophe losses and development-related items from the loss ratio. Development-related items represents net prior year loss reserve and premium development, and includes the effects of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts.
The underlying loss ratio excludes the impact of catastrophe losses and development-related items from the loss ratio. Development-related items represents net prior year loss reserve and premium development, and includes the effects of interest accretion and change in allowance for uncollectible reinsurance.
Further information on net prior year loss reserve development is in Note E to the Consolidated Financial Statements included under Item 8. The following table summarizes the gross and net carried reserves for International.
Further information on net prior year loss reserve development is in Note E to the Consolidated Financial Statements included under Item 8. The following table summarizes the gross and net carried reserves for Commercial.
Rate represents the average change in price on policies that renew excluding exposure change. Exposure represents the measure of risk used in the pricing of the insurance 32 Table of Contents product. The change in exposure represents the change in premium dollars on policies that renew as a result of the change in risk of the policy.
Rate represents the average change in price on policies that renew 31 Table of Contents excluding exposure change. Exposure represents the measure of risk used in the pricing of the insurance product. The change in exposure represents the change in premium dollars on policies that renew as a result of the change in risk of the policy.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 2023 Compared with 2022 This section of this Form 10-K generally discusses 2024 and 2023 results and year-to-year comparisons between 2024 and 2023.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 2024 Compared with 2023 This section of this Form 10-K generally discusses 2025 and 2024 results and year-to-year comparisons between 2025 and 2024.
Long-Term Care Reserves Future policy benefits reserves for our long-term care policies are based on certain actuarial assumptions, including morbidity, persistency, anticipated future premium rate increases and expenses. The adequacy of the reserves is contingent upon actual experience and our future expectations related to these key assumptions.
Long-Term Care Reserves Future policy benefits reserves for our long-term care policies are based on certain actuarial assumptions, including morbidity, persistency, premium rate actions and expenses. The adequacy of the reserves is contingent upon actual experience and our future expectations related to these key assumptions.
A discussion of changes in our results of operations from 2023 to 2022 has been omitted from this Form 10-K, but may be found in “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the year ended December 31, 2023, filed with the SEC on February 6, 2024.
A discussion of changes in our results of operations from 2024 to 2023 has been omitted from this Form 10-K, but may be found in “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the year ended December 31, 2024, filed with the SEC on February 11, 2025.
Terrorism Risk Insurance Program Reauthorization Act of 2019 Our principal reinsurance protection against large-scale terrorist attacks, including nuclear, biological, chemical or radiological attacks, is the coverage currently provided through TRIPRA which runs through the end of 2027.
Terrorism Risk Insurance Program Reauthorization Act of 2019 Our principal reinsurance protection against large-scale terrorist attacks, including nuclear, biological, chemical or radiation events, is the coverage currently provided through TRIPRA which runs through the end of 2027.
Our property and casualty commercial insurance operations are managed and reported in three business segments: Specialty, Commercial and International, which we refer to collectively as Property & Casualty Operations. Specialty provides management and professional liability and other coverages through property and casualty products and services using a network of brokers, independent agencies and managing general underwriters.
Our property and casualty commercial insurance operations are managed and reported in three business segments: Specialty, Commercial and International, which we refer to collectively as Property & Casualty Operations. Specialty provides management and professional liability and other coverages through property and casualty products and services using a network of retail and wholesale brokers, independent agents and managing general underwriters.
Our primary operating cash flow uses are payments for claims, policy benefits and operating expenses, including interest expense on corporate debt. Additionally, cash may be paid or received for income taxes. For 2024, net cash provided by operating activities was $2,571 million as compared with $2,285 million for 2023.
Our primary operating cash flow uses are payments for claims, policy benefits and operating expenses, including interest expense on corporate debt. Additionally, cash may be paid or received for income taxes. For 2025, net cash provided by operating activities was $2,490 million as compared with $2,571 million for 2024.
Further information on our commitments, contingencies and guarantees is provided in Notes A, B, E, F, G, I and M to the Consolidated Financial Statements included under Item 8. 50 Table of Contents Ratings Ratings are an important factor in establishing the competitive position of insurance companies.
Further information on our commitments, contingencies and guarantees is provided in Notes A, B, E, F, G, I and L to the Consolidated Financial Statements included under Item 8. 47 Table of Contents Ratings Ratings are an important factor in establishing the competitive position of insurance companies.
Cash flows from investing activities include the purchase and disposition of financial instruments, excluding those held as trading, and may include the purchase and sale of businesses, equipment and other assets not generally held for resale. For 2024, net cash used by investing activities was $1,317 million as compared with $1,843 million for 2023.
Cash flows from investing activities include the purchase and disposition of financial instruments, excluding those held as trading, and may include the purchase and sale of businesses, equipment and other assets not generally held for resale. For 2025, net cash used by investing activities was $1,449 million as compared with $1,317 million for 2024.
Commercial works with a network of brokers and independent agents to market a broad range of property and casualty insurance products to all types of insureds targeting small business, construction, middle markets and other commercial customers.
Commercial works with a network of retail and wholesale brokers and independent agents to market a broad range of property and casualty insurance products to all types of insureds targeting small business, construction, middle market and other commercial customers.
There are currently no amounts outstanding under our $250 million senior unsecured revolving credit facility and no borrowings outstanding through our membership in the Federal Home Loan Bank of Chicago (FHLBC). CCC paid dividends of $995 million and $1,055 million to CNAF during 2024 and 2023.
There are currently no amounts outstanding under our $250 million senior unsecured revolving credit facility and no borrowings outstanding through our membership in the Federal Home Loan Bank of Chicago (FHLBC). CCC paid dividends of $1,115 million and $995 million to CNAF during 2025 and 2024.
Both years are inclusive of assumption updates as a result of the annual reserve review completed in the third quarter of each year. The cash flow assumption updates from the annual reserve review for 2024 and 2023 resulted in a pretax increase in long-term care reserves of $15 million and $8 million.
Both years are inclusive of assumption updates as a result of the annual reserve review completed in the third quarter of each year. The cash flow assumption updates from the annual reserve review for 2025 and 2024 resulted in a pretax increase in long-term care reserves of $7 million and $15 million.
Specialty includes the following business groups: Management & Professional Liability consists of the following coverages and products: • Professional liability coverages and risk management services to various professional firms, including architects, real estate agents, accounting firms and law firms. • D&O, E&O, employment practices, fiduciary, fidelity and cyber coverages.
Specialty includes the following business groups: Management & Professional Liability consists of the following coverages and products: • Professional liability coverages and risk management services to various professional firms, including architects, real estate agents, accounting firms and law firms. • Directors and officers (D&O), errors and omissions (E&O), employment practices, fiduciary, fidelity and cyber coverages.
We have an effective shelf registration statement on file with the Securities and Exchange Commission under which we may publicly issue an unspecified amount of debt, equity or hybrid securities from time to time. 49 Table of Contents Common Stock Dividends Cash dividends of $3.76 per share on our common stock, including a special cash dividend of $2.00 per share, were declared and paid in 2024.
We have an effective shelf registration statement on file with the Securities and Exchange Commission under which we may publicly issue an unspecified amount of debt, equity or hybrid securities from time to time. 46 Table of Contents Common Stock Dividends Cash dividends of $3.84 per share on our common stock, including a special cash dividend of $2.00 per share, were declared and paid in 2025.
For reconciliations of non-GAAP measures to the most comparable GAAP measures and other information, please see below and Note P to the Consolidated Financial Statements included under Item 8.
For reconciliations of non-GAAP measures to the most comparable GAAP measures and other information, please see below and in Note N to the Consolidated Financial Statements included under Item 8.
For Corporate & Other, the difference between our reserves and the actuarial point estimate is primarily driven by the potential tail volatility of run-off exposures. 25 Table of Contents The key assumptions fundamental to the reserving process are often different for various reserve groups and accident or policy years.
For Corporate & Other, the difference between our reserves and the actuarial point estimate is primarily driven by the potential tail volatility of run-off exposures. 24 Table of Contents The key assumptions fundamental to the reserving process often vary for different reserve groups and accident or policy years.
TRIPRA provides a U.S. government backstop for insurance-related losses resulting from any “act of terrorism,” which is certified by the Secretary of Treasury in consultation with the Secretary of Homeland Security for losses that exceed a threshold of $200 million industry-wide for the calendar year 2025.
TRIPRA provides a U.S. government backstop for insurance-related losses resulting from any “act of terrorism,” which is certified by the Secretary of Treasury in consultation with the Secretary of Homeland Security and the U.S. Attorney General for losses that exceed a threshold of $200 million industry-wide for the calendar year 2026.
December 31 2024 2023 (In millions) Estimated Fair Value Net Unrealized Gains ( Losses) Estimated Fair Value Net Unrealized Gains ( Losses) U.S.
December 31 2025 2024 (In millions) Estimated Fair Value Net Unrealized Gains (Losses) Estimated Fair Value Net Unrealized Gains (Losses) U.S.
Pension settlement transactions are further discussed in Note J to the Consolidated Financial Statements included under Item 8. Core income increased $32 million in 2024 as compared with 2023.
Pension settlement transactions are further discussed in Note J to the Consolidated Financial Statements included under Item 8. Core income increased $26 million in 2025 as compared with 2024.
Unfavorable net prior year loss reserve development of $48 million was recorded in each of 2024 and 2023 related to our Specialty, Commercial, International and Corporate & Other segments.
Unfavorable net prior year loss reserve development of $185 million and $48 million was recorded in 2025 and 2024 related to our Specialty, Commercial, International and Corporate & Other segments.
The treaty has a term of June 1, 2024 to June 1, 2025 and provides coverage for the accumulation of covered losses from catastrophe occurrences above our per occurrence retention of $250 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.
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, chemical or radiation event.
Overview 21 Critical Accounting Estimates 21 Reserves - Estimates and Uncertainties 23 Catastrophes and Related Reinsurance 29 Consolidated Operations 31 Segment Results 32 Specialty 34 Commercial 37 International 39 Life & Group 41 Corporate & Other 42 Investments 43 Net Investment Income 43 Net Investment Gains (Losses) 43 Portfolio Quality 44 Commercial Real Estate 45 Duration 48 Liquidity and Capital Resources 49 Cash Flows 49 Liquidity 49 Common Stock Dividends 50 Commitments, Contingencies and Guarantees 50 Ratings 51 Accounting Standards Updates 52 Forward-Looking Statements 52 20 Table of Contents OVERVIEW The following discussion should be read in conjunction with Part I, Item 1A Risk Factors and Part II, Item 8 Financial Statements and Supplementary Data of this Form 10-K.
Overview 20 Critical Accounting Estimates 20 Reserves - Estimates and Uncertainties 22 Catastrophes and Related Reinsurance 28 Consolidated Operations 30 Segment Results 31 Specialty 34 Commercial 37 International 39 Life & Group 41 Corporate & Other 42 Investments 43 Net Investment Income 43 Net Investment Gains (Losses) 43 Portfolio Quality 44 Duration 45 Liquidity and Capital Resources 46 Cash Flows 46 Liquidity 46 Common Stock Dividends 47 Commitments, Contingencies and Guarantees 47 Ratings 48 Accounting Standards Updates 49 Recent Legislation 49 Forward-Looking Statements 49 19 Table of Contents OVERVIEW The following discussion should be read in conjunction with Part I, Item 1A Risk Factors and Part II, Item 8 Financial Statements and Supplementary Data of this Form 10-K.
The annual structured settlement reserve review resulted in a pretax reduction in claim reserves of $9 million and $6 million for 2024 and 2023. The following tables summarize policyholder reserves for Life & Group.
The annual structured settlement reserve review resulted in a pretax increase in claim reserves of $2 million for 2025 and a reduction in claim reserves of $9 million for 2024. The following tables summarize policyholder reserves for Life & Group.
The increase in cash provided by operating activities was driven by an increase in premiums collected and higher earnings from fixed income securities, partially offset by an increase in net claim payments and higher operating expenses.
The decrease in cash provided by operating activities was driven by an increase in net claim payments and higher operating expenses, partially offset by an increase in premiums collected and higher cash from investment earnings.
Industry and General Market Factors • general economic and business conditions, including recessionary conditions that may decrease the size and number of our insurance customers and create losses in our lines of business, and inflationary pressures (including with respect to the imposition of significant tariffs and any related retaliatory tariffs) on medical care costs, construction costs and other economic sectors; • the effects of social inflation, including frequency of nuclear verdicts and increased litigation activity, on the severity of claims; • the effects on the frequency of claims of reviver statutes that extend, or eliminate, the statute of limitations for the reporting of claims, including statutes passed in certain states with respect to sexual molestation and sexual abuse; • the impact of competitive products, policies and pricing and the competitive environment in which we operate, including changes in our book of business; • product and policy availability and demand and market responses, including the level of ability to obtain rate increases; • the COVID-19 pandemic, including new or emerging variants, other potential pandemics and related measures to mitigate the spread of the foregoing may continue to result in increased claims and related litigation risk across our enterprise; • conditions in the capital and credit markets, including uncertainty and instability in these markets, as well as the overall economy (including with respect to the imposition of significant tariffs and any related retaliatory tariffs), and their impact on the returns, types, liquidity and valuation of our investments; 52 Table of Contents • conditions in the capital and credit markets that may limit our ability to raise significant amounts of capital on favorable terms or at all; and • the possibility of changes in our ratings by ratings agencies, including the inability to access certain markets or distribution channels and the required collateralization of future payment obligations as a result of such changes, and changes in rating agency policies and practices.
Industry and General Market Factors • general economic and business conditions, including potential recessionary conditions that may decrease the size and number of our insurance customers and create losses in our lines of business, and inflationary pressures on medical care costs, construction costs and other economic sectors; • the effect of new tariffs and changes in tariffs, as well as significant uncertainty surrounding U.S. tariff policy generally, and any retaliatory tariffs, may adversely impact the economic environment, inflation expectations and certain loss costs, and may result in decreases in the size and number of our insurance customers; • the effects of social inflation, including frequency of nuclear verdicts and increased litigation activity, on the severity of claims; • the effects on the frequency of claims of reviver statutes that extend, or eliminate, the statute of limitations for the reporting of claims, including statutes passed in certain states with respect to sexual abuse; 49 Table of Contents • the impact of competitive products, policies and pricing and the competitive environment in which we operate, including changes in our book of business; • product and policy availability and demand and market responses, including the level of ability to obtain rate increases; • conditions in the capital and credit markets, including uncertainty and instability in these markets, as well as the overall economy, and their impact on the returns, types, liquidity and valuation of our investments; • conditions in the capital and credit markets that may limit our ability to raise significant amounts of capital on favorable terms or at all; and • the possibility of changes in our ratings by ratings agencies, including the inability to access certain markets or distribution channels and the required collateralization of future payment obligations as a result of such changes, and changes in rating agency policies and practices.
Favorable net prior year loss reserve development of $9 million and $14 million was recorded in 2024 and 2023. Further information on net prior year loss reserve development is in Note E to the Consolidated Financial Statements included under Item 8. 35 Table of Contents The following table summarizes the gross and net carried reserves for Specialty.
Further information on net prior year loss reserve development is in Note E to the Consolidated Financial Statements included under Item 8. 35 Table of Contents The following table summarizes the gross and net carried reserves for Specialty.
Estimated reduction to pretax income Hypothetical revisions (In millions) Morbidity: 2.5% increase in morbidity $ 290 5% increase in morbidity 590 Persistency: 5% decrease in active life mortality and lapse $ 160 10% decrease in active life mortality and lapse 310 Premium Rate Actions: 25% decrease in anticipated future premium rate increases $ 10 50% decrease in anticipated future premium rate increases 20 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.
Estimated reduction to pretax income Hypothetical revisions (In millions) Morbidity: 2.5% increase in morbidity $ 300 5% increase in morbidity 620 Persistency: 5% decrease in active life mortality and lapse $ 180 10% decrease in active life mortality and lapse 350 Premium Rate Actions: 25% decrease in anticipated future premium rate increases $ 30 50% decrease in anticipated future premium rate increases 50 As part of the annual reserve review completed in the third quarter of each year, 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.
December 31, 2024 (In millions) Claim and claim adjustment expenses Future policy benefits Total Long-term care $ — $ 13,158 $ 13,158 Structured settlement and other 541 — 541 Total 541 13,158 13,699 Ceded reserves 81 — 81 Total gross reserves $ 622 $ 13,158 $ 13,780 December 31, 2023 (In millions) Claim and claim adjustment expenses Future policy benefits Total Long-term care $ — $ 13,959 $ 13,959 Structured settlement and other 582 — 582 Total 582 13,959 14,541 Ceded reserves 93 — 93 Total gross reserves $ 675 $ 13,959 $ 14,634 41 Table of Contents Corporate & Other Corporate & Other primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off, including CNA Re, A&EP, a legacy portfolio of EWC policies and certain legacy mass tort reserves.
December 31, 2025 (In millions) Claim and claim adjustment expenses Future policy benefits Total Long-term care $ — $ 13,448 $ 13,448 Structured settlement and other 535 — 535 Total 535 13,448 13,983 Ceded reserves 56 — 56 Total gross reserves $ 591 $ 13,448 $ 14,039 December 31, 2024 (In millions) Claim and claim adjustment expenses Future policy benefits Total Long-term care $ — $ 13,158 $ 13,158 Structured settlement and other 541 — 541 Total 541 13,158 13,699 Ceded reserves 81 — 81 Total gross reserves $ 622 $ 13,158 $ 13,780 41 Table of Contents Corporate & Other Corporate & Other primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off, including A&EP, a legacy portfolio of EWC policies and certain legacy mass tort reserves.
For 2024, net cash used by financing activities was $1,117 million as compared with $577 million for 2023.
For 2025, net cash used by financing activities was $1,104 million as compared with $1,117 million for 2024.
December 31 (In millions) 2024 2023 Gross case reserves $ 876 $ 864 Gross IBNR reserves 2,044 1,845 Total gross carried claim and claim adjustment expense reserves $ 2,920 $ 2,709 Net case reserves $ 741 $ 708 Net IBNR reserves 1,675 1,568 Total net carried claim and claim adjustment expense reserves $ 2,416 $ 2,276 40 Table of Contents Life & Group The Life & Group segment includes our run-off long-term care business as well as structured settlement obligations not funded by annuities related to certain property and casualty claimants.
December 31 (In millions) 2025 2024 Gross case reserves $ 1,052 $ 876 Gross IBNR reserves 2,324 2,044 Total gross carried claim and claim adjustment expense reserves $ 3,376 $ 2,920 Net case reserves $ 880 $ 741 Net IBNR reserves 1,961 1,675 Total net carried claim and claim adjustment expense reserves $ 2,841 $ 2,416 40 Table of Contents Life & Group The Life & Group segment includes our run-off long-term care business as well as structured settlement obligations not funded by annuities related to certain property and casualty claimants.
Morbidity is the frequency and severity of injury, illness, sickness and diseases contracted. Persistency is the percentage of policies remaining in force and can be affected by policy lapses, benefit reductions and death. Future premium rate increases are generally subject to regulatory approval, and therefore the exact timing and size of the approved rate increases are unknown.
Persistency is the percentage of policies remaining in force and can be affected by policy lapses, benefit reductions and death. Premium rate actions are generally subject to regulatory approval, and therefore the exact timing and size of the approved rate increases are unknown.
December 31 2024 2023 (In millions) Estimated Fair Value Effective Duration (In years) Estimated Fair Value Effective Duration (In years) Life & Group $ 14,915 9.8 $ 15,137 10.2 Property & Casualty and Corporate & Other 28,779 4.3 27,981 4.5 Total $ 43,694 6.2 $ 43,118 6.5 The investment portfolio is periodically analyzed for changes in duration and related price risk.
December 31 2025 2024 (In millions) Estimated Fair Value Effective Duration (In years) Estimated Fair Value Effective Duration (In years) Life & Group $ 15,584 9.7 $ 14,915 9.8 Property & Casualty and Corporate & Other 30,716 4.5 28,779 4.3 Total $ 46,300 6.3 $ 43,694 6.2 The investment portfolio is periodically analyzed for changes in duration and related price risk.
Impact of Natural and Man-Made Disasters and Mass Tort Claims • weather and other natural physical events, including the severity and frequency of storms, hail, snowfall and other winter conditions, natural disasters such as hurricanes, tornados and earthquakes, as well as climate change, including effects on global weather patterns, greenhouse gases, sea, land and air temperatures, sea levels, wildfires, rain, hail and snow; • regulatory requirements imposed by coastal state regulators in the wake of hurricanes or other natural disasters, including limitations on the ability to exit markets or to non-renew, cancel or change terms and conditions in policies, as well as mandatory assessments to fund any shortfalls arising from the inability of quasi-governmental insurers to pay claims; • man-made disasters, including the possible occurrence of terrorist attacks, the unpredictability of the nature, targets, severity or frequency of such events, and the effect of the absence or insufficiency of applicable terrorism legislation on coverages; • the occurrence of epidemics and pandemics; and • mass tort claims, including those related to exposure to potentially harmful products or substances such as glyphosate, lead paint, per- and polyfluoroalkyl substances (PFAS) and opioids, sexual abuse and molestation claims and claims arising from changes that repeal or weaken tort reforms.
Impact of Natural and Man-Made Disasters and Mass Tort Claims • weather and other natural physical events, including the severity and frequency of storms, hail, snowfall and other winter conditions, natural disasters such as hurricanes, tornados and earthquakes, as well as climate change, including effects on global weather patterns, greenhouse gases, sea, land and air temperatures, sea levels, wildfires, rain, hail and snow; • regulatory requirements imposed by coastal state regulators in the wake of hurricanes or other natural disasters, including limitations on the ability to exit markets or to non-renew, cancel or change terms and conditions in policies, as well as mandatory assessments to fund any shortfalls arising from the inability of quasi-governmental insurers to pay claims; • man-made disasters, including the possible occurrence of terrorist attacks, the unpredictability of the nature, targets, severity or frequency of such events, and the effect of the absence or insufficiency of applicable terrorism legislation on coverages; • the occurrence of epidemics and pandemics; and • mass tort claims, including those related to exposure to potentially harmful products or substances such as glyphosate, lead paint, per- and polyfluoroalkyl substances (PFAS) and opioids, sexual abuse and molestation claims and claims arising from changes in statutes of limitation and other changes that repeal or weaken tort reforms. 50 Table of Contents Our forward-looking statements speak only as of the date of the filing of this Annual Report on Form 10-K and we do not undertake any obligation to update or revise any forward-looking statement to reflect events or circumstances after the date of the filing of this Annual Report on Form 10-K, even if our expectations or any related events or circumstances change. 51 Table of Contents
However, the assumed pattern is itself based on several implicit assumptions such as the impact of inflation on medical costs and the rate at which claim professionals close claims. As a result, the effect on reserve estimates of a particular change in assumptions typically cannot be specifically quantified, and changes in these assumptions cannot be tracked over time.
However, this pattern is based on several implicit assumptions, such as the impact of inflation on claim costs and the rate at which claim professionals make claim payments and close claims. Consequently, the effect of changes in assumptions on reserve estimates typically cannot be specifically quantified, and these changes cannot be tracked over time.
December 31 (In millions) 2024 2023 Gross case reserves $ 3,690 $ 3,291 Gross IBNR reserves 7,646 6,812 Total gross carried claim and claim adjustment expense reserves $ 11,336 $ 10,103 Net case reserves $ 3,135 $ 2,878 Net IBNR reserves 6,804 6,143 Total net carried claim and claim adjustment expense reserves $ 9,939 $ 9,021 38 Table of Contents International The International segment underwrites property and casualty coverages on a global basis through a branch operation in Canada, a European business consisting of insurance companies based in the U.K. and Luxembourg and Hardy, our Lloyd's syndicate.
December 31 (In millions) 2025 2024 Gross case reserves $ 4,093 $ 3,690 Gross IBNR reserves 8,156 7,646 Total gross carried claim and claim adjustment expense reserves $ 12,249 $ 11,336 Net case reserves $ 3,508 $ 3,135 Net IBNR reserves 7,188 6,804 Total net carried claim and claim adjustment expense reserves $ 10,696 $ 9,939 38 Table of Contents International The International segment underwrites property and casualty coverages on a global basis through a branch operation in Canada, a European business consisting of insurance companies based in the U.K. and Luxembourg and Hardy, our Lloyd's syndicate.
Regulatory, Legal and Operational Factors • regulatory and legal initiatives and compliance with governmental regulations and other legal requirements, which are increasing in complexity and number, change frequently, sometimes conflict, and could expose us to significant monetary damages, regulatory enforcement actions, fines and/or criminal prosecution in one or more jurisdictions, including regulations related to cybersecurity protocols (which continue to evolve in breadth, sophistication and maturity in response to an ever-evolving threat landscape), or utilization of artificial intelligence, legal inquiries by state authorities, judicial interpretations within the regulatory framework, including interpretation of policy provisions, decisions regarding coverage and theories of liability, legislative actions that increase claimant activity, including those revising applicability of statutes of limitations, trends in litigation and the outcome of any litigation involving us and rulings and changes in tax laws and regulations; • regulatory limitations, impositions and restrictions upon us, including with respect to our ability to increase premium rates, and the effects of assessments and other surcharges for guaranty funds and second-injury funds, other mandatory pooling arrangements and future assessments levied on insurance companies; • regulatory limitations and restrictions, including limitations upon our ability to receive dividends from our insurance subsidiaries, imposed by regulatory authorities, including regulatory capital adequacy standards; • breaches of our or our vendors' data security infrastructure resulting in unauthorized access to systems and information, and/or interruption of operations; and • regulatory and legal implications relating to the sophisticated cyber incident sustained by the Company in March 2021 that may arise.
Regulatory, Legal and Operational Factors • regulatory and legal initiatives and compliance with governmental regulations and other legal requirements, which are increasing in complexity and number, change frequently, sometimes conflict, and could expose us to significant monetary damages, regulatory enforcement actions, fines and/or criminal prosecution in one or more jurisdictions, including regulations related to cybersecurity protocols (which continue to evolve in breadth, sophistication and maturity in response to an ever-evolving threat landscape) or utilization of artificial intelligence (AI), legal inquiries by state authorities, judicial interpretations within the regulatory framework, including interpretation of policy provisions, decisions regarding coverage and theories of liability, legislative actions that increase claimant activity, including those revising applicability of statutes of limitations, trends in litigation and the outcome of any litigation involving us and rulings and changes in tax laws and regulations; • regulatory limitations, impositions and restrictions upon us, including with respect to our ability to increase premium rates, and the effects of assessments and other surcharges for guaranty funds and second-injury funds, other mandatory pooling arrangements and future assessments levied on insurance companies; • regulatory limitations and restrictions, including limitations upon our ability to receive dividends from our insurance subsidiaries, imposed by regulatory authorities, including regulatory capital adequacy standards; • additional complexities and greater risk to the effectiveness of controls with the incorporation of AI into our and our third-party service providers' operations, including the possibility of inaccurate or biased outputs, degradation in model performance, unauthorized use or disclosure of data used to train AI models, and the potential for AI to be misused to perpetrate fraud or evade monitoring controls; and • breaches of our or our vendors' data security infrastructure resulting in unauthorized access to systems and information, and/or interruption of operations.
December 31 (In millions) 2024 2023 Gross case reserves $ 2,023 $ 1,604 Gross IBNR reserves 5,403 5,527 Total gross carried claim and claim adjustment expense reserves $ 7,426 $ 7,131 Net case reserves $ 1,697 $ 1,392 Net IBNR reserves 4,282 4,524 Total net carried claim and claim adjustment expense reserves $ 5,979 $ 5,916 36 Table of Contents Commercial Commercial works with a network of brokers and independent agents to market a broad range of property and casualty insurance products to all types of insureds targeting small business, construction, middle markets and other commercial customers.
December 31 (In millions) 2025 2024 Gross case reserves $ 2,166 $ 2,023 Gross IBNR reserves 5,618 5,403 Total gross carried claim and claim adjustment expense reserves $ 7,784 $ 7,426 Net case reserves $ 1,801 $ 1,697 Net IBNR reserves 4,387 4,282 Total net carried claim and claim adjustment expense reserves $ 6,188 $ 5,979 36 Table of Contents Commercial Commercial works with a network of retail and wholesale brokers and independent agents to market a broad range of property and casualty insurance products to all types of insureds targeting small business, construction, middle market and other commercial customers.
Years ended December 31 (In millions) 2024 2023 Fixed maturity securities: Corporate bonds and other $ (57) $ (57) States, municipalities and political subdivisions 1 10 Asset-backed (46) (44) Total fixed maturity securities (102) (91) Non-redeemable preferred stock 21 4 Derivatives, short-term and other — (1) Mortgage loans — (11) Net investment losses (81) (99) Income tax benefit on net investment losses 17 20 Net investment losses, after tax $ (64) $ (79) Pretax net investment losses decreased $18 million for 2024 as compared with 2023 driven by the favorable change in fair value of non-redeemable preferred stock and lower net losses on disposals of fixed maturity securities, partially offset by higher impairment losses.
Years ended December 31 (In millions) 2025 2024 Fixed maturity securities: Corporate bonds and other $ (64) $ (57) States, municipalities and political subdivisions (1) 1 Asset-backed (18) (46) Total fixed maturity securities (83) (102) Non-redeemable preferred stock 7 21 Derivatives, short-term and other — — Mortgage loans (5) — Net investment losses (81) (81) Income tax benefit on net investment losses 17 17 Net investment losses, after tax $ (64) $ (64) Pretax net investment losses for 2025 were consistent with 2024 as lower impairment losses were offset by a lower favorable change in the fair value of non-redeemable preferred stock and higher net losses on disposals of fixed maturity securities.
These significant factors are the ones that we believe could most likely materially affect the reserves. This discussion covers the major types of business for which we believe a material deviation to our reserves is reasonably possible. There can be no assurance that actual experience will be consistent with the current assumptions or with the variation indicated by the discussion.
This discussion covers the major types of business for which we believe a material deviation in our reserves is reasonably possible. There can be no assurance that actual experience will be consistent with the current assumptions or with the variation indicated in the discussion.
Years ended December 31 (In millions) 2024 2023 Fixed income securities: Taxable fixed income securities $ 1,940 $ 1,798 Tax-exempt fixed income securities 144 178 Total fixed income securities 2,084 1,976 Limited partnership and common stock investments 320 202 Other, net of investment expense 93 86 Net investment income $ 2,497 $ 2,264 Effective income yield for the fixed income securities portfolio 4.8 % 4.7 % Limited partnership and common stock return 13.3 % 9.4 % Net investment income increased $233 million in 2024 as compared with 2023 driven by favorable 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.
Years ended December 31 (In millions) 2025 2024 Fixed income securities: Taxable fixed income securities $ 2,012 $ 1,940 Tax-exempt fixed income securities 165 144 Total fixed income securities 2,177 2,084 Limited partnership and common stock investments 302 320 Other, net of investment expense 78 93 Net investment income $ 2,557 $ 2,497 Effective income yield for the fixed income securities portfolio 4.9 % 4.8 % Limited partnership and common stock return for the year 11.1 % 13.3 % Net investment income increased $60 million in 2025 as compared with 2024 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.
Underwriting gain (loss) is deemed to be a non-GAAP financial measure and is calculated pretax as net earned premiums less total insurance expenses, which includes insurance claims and policyholders' benefits, amortization of deferred acquisition costs and insurance related administrative expenses. Net income (loss) is the most directly comparable GAAP measure.
We use underwriting gain (loss) and underlying underwriting gain (loss), calculated using GAAP financial results, to monitor our insurance operations. Underwriting gain (loss) is deemed to be a non-GAAP financial measure and is calculated pretax as net earned premiums less total insurance expenses, which includes insurance claims and policyholders' benefits, amortization of deferred acquisition costs and insurance related administrative expenses.
December 31 (In millions) 2024 2023 Gross case reserves $ 1,241 $ 1,353 Gross IBNR reserves 1,431 1,333 Total gross carried claim and claim adjustment expense reserves $ 2,672 $ 2,686 Net case reserves $ 120 $ 129 Net IBNR reserves 268 239 Total net carried claim and claim adjustment expense reserves $ 388 $ 368 42 Table of Contents INVESTMENTS Net Investment Income The significant components of Net investment income are presented in the following table.
December 31 (In millions) 2025 2024 Gross case reserves $ 1,196 $ 1,241 Gross IBNR reserves 1,403 1,431 Total gross carried claim and claim adjustment expense reserves $ 2,599 $ 2,672 Net case reserves $ 119 $ 120 Net IBNR reserves 238 268 Total net carried claim and claim adjustment expense reserves $ 357 $ 388 42 Table of Contents INVESTMENTS Net Investment Income The significant components of Net investment income are presented in the following table.
Years ended December 31 (In millions, except ratios, rate, renewal premium change and retention) 2024 2023 Gross written premiums $ 1,483 $ 1,485 Net written premiums 1,262 1,237 Net earned premiums 1,256 1,176 Underwriting gain 76 86 Net investment income 131 103 Core income 153 145 Other performance metrics: Loss ratio 60.9 % 61.4 % Expense ratio 33.1 31.2 Combined ratio 94.0 % 92.6 % Less: Effect of catastrophe impacts 3.2 2.5 Less: Effect of (favorable) unfavorable development-related items (0.4) 1.1 Underlying combined ratio 91.2 % 89.0 % Underlying loss ratio 58.1 % 57.8 % Rate (1) % 3 % Renewal premium change — 6 Retention 82 83 New business $ 288 $ 302 2024 Compared with 2023 Gross written premiums for International decreased $2 million in 2024 as compared with 2023.
Years ended December 31 (In millions, except ratios, rate, renewal premium change and retention) 2025 2024 Net written premiums $ 1,347 $ 1,262 Net earned premiums 1,311 1,256 Underwriting gain 115 76 Net investment income 156 131 Core income 207 153 Other performance metrics: Loss ratio 58.4 % 60.9 % Expense ratio 32.8 33.1 Combined ratio 91.2 % 94.0 % Less: Effect of catastrophe impacts 1.8 3.2 Less: Effect of favorable development-related items (1.9) (0.4) Underlying combined ratio 91.3 % 91.2 % Underlying loss ratio 58.5 % 58.1 % Rate (4) % (1) % Renewal premium change (1) — Retention 86 82 New business $ 370 $ 288 2025 Compared with 2024 Net written premiums for International increased $85 million in 2025 as compared with 2024.
The combined ratio of 92.6% increased 2.2 points in 2024 as compared with 2023 primarily due to a 1.3 point increase in the loss ratio and a 0.8 point increase in the expense ratio.
The combined ratio of 95.3% increased 2.7 points in 2025 as compared with 2024 due to a 2.0 point increase in the loss ratio and a 0.7 point increase in the expense ratio.
Best and Moody’s maintain positive outlooks across the Company's Insurer Financial Strength and Senior Debt Ratings. A.M. Best revised its outlook on the Company's ratings to positive from stable in December 2024. Moody's revised its outlook on the Company's ratings to positive from stable in November 2024.
Best upgraded the Company's Insurer Financial Strength and Senior Debt Ratings and revised the outlook on the ratings to stable from positive in December 2025. Moody's maintains a positive outlook on the Company's ratings after revising it to positive from stable in November 2024. S&P and Fitch maintain stable outlooks across the Company’s Insurer Financial Strength and Senior Debt Ratings.
On February 7, 2025, our Board of Directors declared a quarterly cash dividend of $0.46 per share and a special cash dividend of $2.00 per share, payable March 13, 2025 to stockholders of record on February 24, 2025.
On February 6, 2026, our Board of Directors declared a quarterly cash dividend of $0.48 per share and a special cash dividend of $2.00 per share, payable March 12, 2026 to stockholders of record on February 23, 2026.
Net written premiums for Commercial increased $589 million in 2024 as compared with 2023. The increase in net earned premiums was consistent with the trend in net written premiums. Core income increased $50 million in 2024 as compared with 2023, driven by improved underlying underwriting results and higher net investment income partially offset by higher catastrophe losses.
The increase in net earned premiums was consistent with the trend in net written premiums. Core income increased $118 million in 2025 as compared with 2024, driven by lower catastrophe losses, improved underlying underwriting results and higher net investment income partially offset by unfavorable net prior year loss reserve development.
(3) The Claim and claim adjustment expense reserves reflected above are not discounted and represent our estimate of the amount and timing of the ultimate settlement and administration of gross claims based on our assessment of facts and circumstances known as of December 31, 2024. See the Reserves - Estimates and Uncertainties section of this MD&A for further information.
(2) The lease obligations reflected above are not discounted. (3) The Claim and claim adjustment expense reserves reflected above are not discounted and represent our estimate of the amount and timing of the ultimate settlement and administration of gross claims based on our assessment of facts and circumstances known as of December 31, 2025.
We reported catastrophe losses, net of reinsurance, of $358 million and $236 million for the years ended December 31, 2024 and 2023. Catastrophe losses for the years ended December 31, 2024 and 2023 were driven by severe weather related events, including $71 million for Hurricane Helene and $33 million for Hurricane Milton in 2024.
Catastrophe losses for the years ended December 31, 2025 and 2024 were driven by severe weather related events, including $64 million for the California wildfires in 2025 and $71 million for Hurricane Helene and $33 million for Hurricane Milton in 2024.
Financing activities for the periods presented include: • In 2024, we issued $500 million of 5.125% notes due February 15, 2034 and repaid the $550 million outstanding aggregate principal balance of our 3.95% senior notes which came due May 15, 2024. • In 2024, we paid dividends of $1,025 million and repurchased 450,000 shares of our common stock at an aggregate cost of $20 million. • In 2023, we issued $500 million of 5.50% senior notes due June 15, 2033 and repaid the $243 million outstanding aggregate principal balance of our 7.25% debenture which came due November 15, 2023. • In 2023, we paid dividends of $787 million and repurchased 550,000 shares of our common stock at an aggregate cost of $24 million.
Financing activities for the periods presented include: • In 2025, we issued $500 million of 5.20% notes due August 15, 2035 and repaid at par the $500 million outstanding aggregate principal balance of our 4.50% senior notes in advance of their March 1, 2026 maturity date. • In 2025, we paid dividends of $1,047 million and repurchased 700,000 shares of common stock at an aggregate cost of $34 million. • In 2024, we issued $500 million of 5.125% notes due February 15, 2034 and repaid the $550 million outstanding aggregate principal balance of our 3.95% senior notes which came due May 15, 2024. • In 2024, we paid dividends of $1,025 million and repurchased 450,000 shares of our common stock at an aggregate cost of $20 million.
Surety offers small, medium and large contract and commercial surety bonds. Surety provides surety and fidelity bonds in all 50 states. Warranty and Alternative Risks provides extended service contracts and insurance products that provide protection from the financial burden associated with mechanical breakdown and other related losses, primarily for vehicles, portable electronic communication devices and other consumer goods.
Surety offers small, medium and large contract and commercial surety bonds. Surety provides surety and fidelity bonds in all 50 states. Warranty and Alternative Risks provides extended service contracts and related insurance products covering mechanical breakdown and similar losses for vehicles, portable electronics and other consumer goods.
Some of these assumptions are explicit assumptions that are required of a particular method, but most of the assumptions are implicit and cannot be precisely quantified. An example of an explicit assumption is the pattern employed in the paid development method.
Some of these assumptions are explicit and required by specific methods, while most are implicit and cannot be precisely quantified. An example of an explicit assumption is the pattern used in the paid or incurred development method.
Catastrophe losses were $40 million, or 3.2 points of the loss ratio, for 2024, as compared with $29 million, or 2.5 points of the loss ratio, for 2023. Favorable net prior year loss reserve development of $6 million was recorded in 2024 compared with unfavorable net prior year loss reserve development of $13 million recorded in 2023.
Catastrophe losses were $217 million, or 3.8 points of the loss ratio, for 2025, as compared with $318 million, or 6.2 points of the loss ratio, for 2024. 37 Table of Contents Unfavorable net prior year loss reserve development of $39 million was recorded in 2025 compared with $16 million of favorable net prior year loss reserve development recorded in 2024.
Years ended December 31 (In millions) 2024 2023 Operating Revenues Net earned premiums $ 10,211 $ 9,480 Net investment income 2,497 2,264 Non-insurance warranty revenue 1,609 1,624 Other revenues 34 30 Total operating revenues 14,351 13,398 Claims, Benefits and Expenses Net incurred claims and benefits (re-measurement loss of $125 and $88) 7,704 7,039 Policyholders' dividends 34 29 Amortization of deferred acquisition costs 1,798 1,644 Non-insurance warranty expense 1,547 1,544 Insurance related administrative expenses 1,275 1,251 Interest expense 133 127 Other expenses 197 147 Total claims, benefits and expenses 12,688 11,781 Income tax expense on core income (347) (333) Core income 1,316 1,284 Net investment losses (81) (99) Income tax benefit on net investment losses 17 20 Net investment losses, after tax (64) (79) Pension settlement transaction losses (371) — Income tax benefit on pension settlement transaction losses 78 — Pension settlement transaction losses, after tax (293) — Net income $ 959 $ 1,205 2024 Compared with 2023 Net income was $959 million for 2024, which includes a $293 million after-tax loss from pension settlement transactions, as compared with $1,205 million for 2023.
Years ended December 31 (In millions) 2025 2024 Operating Revenues Net earned premiums $ 10,900 $ 10,211 Net investment income 2,557 2,497 Non-insurance warranty revenue 1,577 1,609 Other revenues 36 34 Total operating revenues 15,070 14,351 Claims, Benefits and Expenses Net incurred claims and benefits (re-measurement loss of $104 and $125) 8,258 7,704 Policyholders' dividends 36 34 Amortization of deferred acquisition costs 1,898 1,798 Non-insurance warranty expense 1,526 1,547 Insurance related administrative expenses 1,349 1,275 Interest expense 135 133 Other expenses 167 197 Total claims, benefits and expenses 13,369 12,688 Income tax expense on core income (359) (347) Core income 1,342 1,316 Net investment losses (81) (81) Income tax benefit on net investment losses 17 17 Net investment losses, after tax (64) (64) Pension settlement transaction losses — (371) Income tax benefit on pension settlement transaction losses — 78 Pension settlement transaction losses, after tax — (293) Net income $ 1,278 $ 959 2025 Compared with 2024 Net income was $1,278 million for 2025 as compared with $959 million for 2024, which included a $293 million after-tax loss from pension settlement transactions.
Years ended December 31 (In millions, except ratios, rate, renewal premium change and retention) 2024 2023 Gross written premiums $ 6,932 $ 7,113 Gross written premiums excluding third-party captives 3,895 3,800 Net written premiums 3,445 3,329 Net earned premiums 3,361 3,307 Underwriting gain 249 317 Net investment income 626 558 Core income 694 708 Other performance metrics: Loss ratio 59.5 % 58.2 % Expense ratio 32.8 32.0 Dividend ratio 0.3 0.2 Combined ratio 92.6 % 90.4 % Less: Effect of catastrophe impacts — — Less: Effect of favorable development-related items (0.3) (0.3) Underlying combined ratio 92.9 % 90.7 % Underlying loss ratio 59.8 % 58.5 % Rate 1 % — % Renewal premium change 2 1 Retention 89 88 New business $ 462 $ 481 2024 Compared with 2023 Gross written premiums, excluding third-party captives, for Specialty increased $95 million in 2024 as compared with 2023 driven by retention and favorable renewal premium change.
Years ended December 31 (In millions, except ratios, rate, renewal premium change and retention) 2025 2024 Net written premiums $ 3,515 $ 3,445 Net earned premiums 3,472 3,361 Underwriting gain 164 249 Net investment income 650 626 Core income 637 694 Other performance metrics: Loss ratio 61.5 % 59.5 % Expense ratio 33.5 32.8 Dividend ratio 0.3 0.3 Combined ratio 95.3 % 92.6 % Less: Effect of catastrophe impacts — — Less: Effect of unfavorable (favorable) development-related items 1.1 (0.3) Underlying combined ratio 94.2 % 92.9 % Underlying loss ratio 60.4 % 59.8 % Rate 3 % 1 % Renewal premium change 4 2 Retention 86 89 New business $ 487 $ 462 2025 Compared with 2024 Net written premiums for Specialty increased $70 million in 2025 as compared with 2024 driven by rate partially offset by lower retention.
Based on 2024 earned premiums, our estimated deductible under the program is $1.2 billion for 2025.
Based on 2025 earned premiums, our estimated deductible under the program is 28 Table of Contents $1.4 billion for 2026.
Our recorded reserves are management's best estimate. In order to provide an indication of the variability associated with our net reserves, the following discussion provides a sensitivity analysis that shows the approximate estimated impact of variations in significant factors affecting our reserve estimates for particular types of business.
Our recorded reserves are management's best estimate. To indicate the variability associated with our recorded reserves, the following discussion provides a sensitivity analysis showing the approximate estimated impact of variations in significant factors affecting our reserve estimates for particular types of business. These significant factors are those we believe could most likely materially affect the reserves.
Years ended December 31 (In millions, except ratios, rate, renewal premium change and retention) 2024 2023 Gross written premiums $ 6,964 $ 6,120 Gross written premiums excluding third-party captives 6,816 5,994 Net written premiums 5,469 4,880 Net earned premiums 5,158 4,547 Underwriting gain 171 182 Net investment income 733 645 Core income 702 652 Other performance metrics: Loss ratio 68.3 % 65.9 % Expense ratio 27.9 29.6 Dividend ratio 0.5 0.5 Combined ratio 96.7 % 96.0 % Less: Effect of catastrophe impacts 6.2 4.5 Less: Effect of favorable development-related items (0.1) (0.1) Underlying combined ratio 90.6 % 91.6 % Underlying loss ratio 62.2 % 61.5 % Rate 6 % 7 % Renewal premium change 7 10 Retention 84 84 New business $ 1,512 $ 1,297 2024 Compared with 2023 Gross written premiums for Commercial increased $844 million in 2024 as compared with 2023 driven by favorable renewal premium change, rate and higher new business.
Years ended December 31 (In millions, except ratios, rate, renewal premium change and retention) 2025 2024 Net written premiums $ 5,821 $ 5,469 Net earned premiums 5,695 5,158 Underwriting gain 272 171 Net investment income 775 733 Core income 820 702 Other performance metrics: Loss ratio 67.9 % 68.3 % Expense ratio 26.8 27.9 Dividend ratio 0.5 0.5 Combined ratio 95.2 % 96.7 % Less: Effect of catastrophe impacts 3.8 6.2 Less: Effect of unfavorable (favorable) development-related items 0.9 (0.1) Underlying combined ratio 90.5 % 90.6 % Underlying loss ratio 63.2 % 62.2 % Rate 5 % 6 % Renewal premium change 6 7 Retention 82 84 New business $ 1,491 $ 1,512 2025 Compared with 2024 Net written premiums for Commercial increased $352 million in 2025 as compared with 2024 driven by favorable renewal premium change, inclusive of rate, partially offset by lower retention.
Statutory margin is the excess of carried reserves over best estimate reserves. As of September 30, 2024, statutory long-term care margin increased to $1.4 billion from $1.3 billion, primarily driven by a more favorable interest rate environment resulting in a higher yielding investment portfolio. 28 Table of Contents CATASTROPHES AND RELATED REINSURANCE Various events can cause catastrophe losses.
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. 27 Table of Contents CATASTROPHES AND RELATED REINSURANCE Various events can cause catastrophe losses.
If actual or expected future experience differs from these assumptions, the reserves may not be adequate, requiring us to increase reserves. The reserves are discounted using upper-medium grade fixed income instrument yields as of each reporting date. In addition, we may not receive regulatory approval for the level of premium rate increases we request.
If actual or expected future experience differs from these assumptions, the reserves may not be adequate, requiring us to increase reserves. The reserves are discounted using upper-medium grade fixed income instrument yields as of each reporting date. The reserving process is discussed in further detail in the Reserves - Estimates and Uncertainties section below.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeMarket Risk Scenario 1 December 31, 2024 Increase (Decrease) (In millions) Estimated Fair Value Interest Rate Risk Foreign Currency Risk Equity Price Risk Assets: Fixed maturity securities $ 41,111 $ (2,684) $ (326) $ — Equity securities 659 (15) — (18) Limited partnership investments 2,520 — (1) (101) Other invested assets 85 — (8) — Mortgage loans (1) 987 (30) — — Short-term investments 2,088 (1) (23) — Total assets 47,450 (2,730) (358) (119) Derivative financial instruments, included in Other liabilities — — — — Total $ 47,450 $ (2,730) $ (358) $ (119) Short-term debt (2) $ — $ — $ — $ — Long-term debt (2) 2,885 (125) — — Total debt $ 2,885 $ (125) $ — $ — December 31, 2023 Increase (Decrease) (In millions) Estimated Fair Value Interest Rate Risk Foreign Currency Risk Equity Price Risk Assets: Fixed maturity securities $ 40,425 $ (2,779) $ (319) $ — Equity securities 683 (14) — (19) Limited partnership investments 2,174 — (1) (87) Other invested assets 80 — (7) — Mortgage loans (1) 997 (34) — — Short-term investments 2,165 (2) (19) — Total assets 46,524 (2,829) (346) (106) Derivative financial instruments, included in Other liabilities (1) — 1 — Total $ 46,523 $ (2,829) $ (345) $ (106) Short-term debt (2) $ 546 $ (2) $ — $ — Long-term debt (2) 2,385 (110) — — Total debt $ 2,931 $ (112) $ — $ — (1) Reported at amortized value, less allowance for credit loss, in the Consolidated Balance Sheets included under Item 8 and not adjusted for fair value changes.
Biggest changeMarket Risk Scenario 1 December 31, 2025 Increase (Decrease) (In millions) Estimated Fair Value Interest Rate Risk Foreign Currency Risk Equity Price Risk Assets: Fixed maturity securities $ 43,402 $ (2,869) $ (399) $ — Equity securities 769 (22) — (24) Limited partnership investments 2,772 — (2) (111) Other invested assets 105 — (10) — Mortgage loans (1) 1,072 (34) — — Short-term investments 2,320 (2) (25) — Total assets 50,440 (2,927) (436) (135) Long-term debt (2) $ 2,967 $ (141) $ — $ — Total debt $ 2,967 $ (141) $ — $ — December 31, 2024 Increase (Decrease) (In millions) Estimated Fair Value Interest Rate Risk Foreign Currency Risk Equity Price Risk Assets: Fixed maturity securities $ 41,111 $ (2,684) $ (326) $ — Equity securities 659 (15) — (18) Limited partnership investments 2,520 — (1) (101) Other invested assets 85 — (8) — Mortgage loans (1) 987 (30) — — Short-term investments 2,088 (1) (23) — Total assets 47,450 (2,730) (358) (119) Long-term debt (2) $ 2,885 $ (125) $ — $ — Total debt $ 2,885 $ (125) $ — $ — (1) Reported at amortized value, less allowance for credit loss, in the Consolidated Balance Sheets included under Item 8 and not adjusted for fair value changes.
Equity price risk was measured assuming an instantaneous 10% and 25% decline in the S&P 500 from its level as of December 31, 2024 and 2023, with all other variables held constant. Our common stock holdings, which are included in equity securities, were assumed to be highly and positively correlated with the S&P 500 index.
Equity price risk was measured assuming an instantaneous 10% and 25% decline in the S&P 500 from its level as of December 31, 2025 and 2024, with all other variables held constant. Our common stock holdings, which are included in equity securities, were assumed to be highly and positively correlated with the S&P 500 index.
The sensitivity analysis estimates the decline in the fair value of our interest sensitive assets and liabilities that were held as of December 31, 2024 and 2023 due to an instantaneous change in the yield of the security at the end of the period of 100 and 150 basis points, with all other variables held constant.
The sensitivity analysis estimates the decline in the fair value of our interest sensitive assets and liabilities that were held as of December 31, 2025 and 2024 due to an instantaneous change in the yield of the security at the end of the period of 100 and 150 basis points, with all other variables held constant.
The sensitivity analysis also assumes an instantaneous 10% and 20% decline in the foreign currency exchange rates versus the United States dollar from their levels as of December 31, 2024 and 2023, with all other variables held constant.
The sensitivity analysis also assumes an instantaneous 10% and 20% decline in the foreign currency exchange rates versus the United States dollar from their levels as of December 31, 2025 and 2024, with all other variables held constant.
For our limited partnership holdings, the estimated change in value was largely derived from a beta analysis calculation of historical experience of our portfolio and indices with similar strategies relative to the S&P 500. 54 Table of Contents The following tables present the estimated effects on the fair value of our financial instruments as of December 31, 2024 and 2023 due to an increase in yield rates of 100 basis points, a 10% decline in foreign currency exchange rates and a 10% decline in the S&P 500, with all other variables held constant.
For our limited partnership holdings, the estimated change in value was largely derived from a beta analysis calculation of historical experience of our portfolio and indices with similar strategies relative to the S&P 500. 52 Table of Contents The following tables present the estimated effects on the fair value of our financial instruments as of December 31, 2025 and 2024 due to an increase in yield rates of 100 basis points, a 10% decline in foreign currency exchange rates and a 10% decline in the S&P 500, with all other variables held constant.
(2) Reported at amortized value in the Consolidated Balance Sheets included under Item 8 and not adjusted for fair value changes. 55 Table of Contents The following tables present the estimated effects on the fair value of our financial instruments as of December 31, 2024 and 2023 due to an increase in yield rates of 150 basis points, a 20% decline in foreign currency exchange rates and a 25% decline in the S&P 500, with all other variables held constant.
(2) Reported at amortized value in the Consolidated Balance Sheets included under Item 8 and not adjusted for fair value changes. 53 Table of Contents The following tables present the estimated effects on the fair value of our financial instruments as of December 31, 2025 and 2024 due to an increase in yield rates of 150 basis points, a 20% decline in foreign currency exchange rates and a 25% decline in the S&P 500, with all other variables held constant.
We have estimated the change in the carrying value of the LFPB due to interest rate changes by discounting the expected future cash flows using different interest rate scenarios. 56 Table of Contents
We have estimated the change in the carrying value of the LFPB due to interest rate changes by discounting the expected future cash flows using different interest rate scenarios. 54 Table of Contents
The estimated decrease in the carrying value of the LFPB as of December 31, 2024 and 2023 due to an increase in yield rates of 150 basis points was $1.8 billion and $2.1 billion.
The estimated decrease in the carrying value of the LFPB as of December 31, 2025 and 2024 due to an increase in yield rates of 150 basis points was $1.8 billion.
The carrying value of the LFPB was $13.2 billion and $14.0 billion as of December 31, 2024 and 2023. The estimated decrease in the carrying value of the LFPB as of December 31, 2024 and 2023 due to an increase in yield rates of 100 basis points was $1.3 billion and $1.5 billion.
The carrying value of the LFPB was $13.4 billion and $13.2 billion as of December 31, 2025 and 2024. The estimated decrease in the carrying value of the LFPB as of December 31, 2025 and 2024 due to an increase in yield rates of 100 basis points was $1.3 billion.
Market Risk Scenario 2 December 31, 2024 Increase (Decrease) (In millions) Estimated Fair Value Interest Rate Risk Foreign Currency Risk Equity Price Risk Assets: Fixed maturity securities $ 41,111 $ (4,024) $ (651) $ — Equity securities 659 (23) — (45) Limited partnership investments 2,520 — (2) (252) Other invested assets 85 — (16) — Mortgage loans (1) 987 (45) — — Short-term investments 2,088 (2) (45) — Total assets 47,450 (4,094) (714) (297) Derivative financial instruments, included in Other liabilities — — — — Total $ 47,450 $ (4,094) $ (714) $ (297) Short-term debt (2) $ — $ — $ — $ — Long-term debt (2) 2,885 (188) — — Total debt $ 2,885 $ (188) $ — $ — December 31, 2023 Increase (Decrease) (In millions) Estimated Fair Value Interest Rate Risk Foreign Currency Risk Equity Price Risk Assets: Fixed maturity securities $ 40,425 $ (4,166) $ (638) $ — Equity securities 683 (22) — (48) Limited partnership investments 2,174 — (1) (217) Other invested assets 80 — (15) — Mortgage loans (1) 997 (51) — — Short-term investments 2,165 (4) (38) — Total assets 46,524 (4,243) (692) (265) Derivative financial instruments, included in Other liabilities (1) — 3 — Total $ 46,523 $ (4,243) $ (689) $ (265) Short-term debt (2) $ 546 $ (3) $ — $ — Long-term debt (2) 2,385 (165) — — Total debt $ 2,931 $ (168) $ — $ — (1) Reported at amortized value, less allowance for credit loss, in the Consolidated Balance Sheets included under Item 8 and not adjusted for fair value changes.
Market Risk Scenario 2 December 31, 2025 Increase (Decrease) (In millions) Estimated Fair Value Interest Rate Risk Foreign Currency Risk Equity Price Risk Assets: Fixed maturity securities $ 43,402 $ (4,301) $ (798) $ — Equity securities 769 (33) — (59) Limited partnership investments 2,772 — (5) (277) Other invested assets 105 — (20) — Mortgage loans (1) 1,072 (51) — — Short-term investments 2,320 (2) (49) — Total assets 50,440 (4,387) (872) (336) Long-term debt (2) $ 2,967 $ (211) $ — $ — Total debt $ 2,967 $ (211) $ — $ — December 31, 2024 Increase (Decrease) (In millions) Estimated Fair Value Interest Rate Risk Foreign Currency Risk Equity Price Risk Assets: Fixed maturity securities $ 41,111 $ (4,024) $ (651) $ — Equity securities 659 (23) — (45) Limited partnership investments 2,520 — (2) (252) Other invested assets 85 — (16) — Mortgage loans (1) 987 (45) — — Short-term investments 2,088 (2) (45) — Total assets 47,450 (4,094) (714) (297) Long-term debt (2) $ 2,885 $ (188) $ — $ — Total debt $ 2,885 $ (188) $ — $ — (1) Reported at amortized value, less allowance for credit loss, in the Consolidated Balance Sheets included under Item 8 and not adjusted for fair value changes.

Other CNA 10-K year-over-year comparisons