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CNA FINANCIAL CORP - Annual Report: 2023 (Form 10-K)

Core (loss) income(48)(221)108 
(1) As of January 1, 2023, we adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts presented in the financial statements have been adjusted to reflect application of the new guidance. See Note A and Note F to the Consolidated Financial Statements for additional information.
2023 Compared with 2022
Core loss decreased $173 million in 2023 as compared with 2022 primarily due to higher net investment income and an unfavorable pretax impact of $181 million in the prior year as a result of the annual reserve reviews, partially offset by long-term care policy buyouts in 2023. Policy buyouts generally result in an unfavorable impact on core loss, as the cash payments are linked to higher statutory reserve levels. Excluding the impacts of long-term care policy buyouts, 2023 underwriting results are generally in line with reserving expectations.
Both years are inclusive of cash flow assumption updates as a result of the annual reserve review completed in the third quarter of each year. Cash flow assumption updates for 2023 resulted in an $8 million pretax increase in long-term care reserves. Adjusted to reflect the application of the LDTI accounting standard, the cash flow assumption updates for 2022 resulted in a $186 million pretax increase in long-term care reserves, primarily driven by the unfavorable impact of increased cost of care inflation, partially offset by favorable premium rate assumptions.
The annual structured settlement review resulted in a pretax reduction in claim reserves of $6 million and $5 million for 2023 and 2022.
2022 Compared with 2021
Results for both years have been adjusted to reflect the application of the LDTI accounting standard.
Core results decreased $329 million in 2022 as compared with 2021 primarily due to the unfavorable impact of the 2022 annual reserve reviews and lower net investment income.
Cash flow assumption updates, as a result of the annual reserve reviews, for 2022 resulted in an $186 million pretax increase in long-term care reserves compared to a $3 million pretax increase in 2021.
The annual structured settlement review resulted in a pretax reduction in claim reserves of $5 million for 2022 and a pretax increase to claim reserves of $2 million for 2021.
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The following tables summarize policyholder reserves for Life & Group.
December 31, 2023
(In millions)Claim and claim adjustment expensesFuture policy benefitsTotal
Long-term care$— $13,959 $13,959 
Structured settlement annuities and other582— 582 
Total582 13,959 14,541 
Ceded reserves93 — 93 
Total gross reserves$675 $13,959 $14,634 
December 31, 2022
(In millions)Claim and claim adjustment expensesFuture policy benefitsTotal
Long-term care (1) (2)
$— $13,480 $13,480 
Structured settlement annuities and other594— 594 
Total594 13,480 14,074 
2023 Compared with 2022
Core loss decreased $10 million for 2023 as compared with 2022. The current year includes higher net investment income, a $19 million after-tax charge related to office consolidation, and a $56 million after-tax charge related to unfavorable prior period development for legacy mass tort claims compared with a $51 million after-tax charge for legacy mass tort claims in the prior year. The charge related to office consolidation is further discussed in Note M and net prior year loss reserve development is further discussed in Note E, to the Consolidated Financial Statements included under Item 8.
The application of retroactive reinsurance accounting to additional cessions to the A&EP LPT resulted in an after-tax benefit of $6 million and $3 million in 2023 and 2022, both of which have no economic impact. The A&EP LPT is further discussed in Note E to the Consolidated Financial Statements included under Item 8.
The following table summarizes the gross and net carried reserves for Corporate & Other.
December 31
(In millions)20232022
Gross case reserves$1,353 $1,428 
Gross IBNR reserves1,333 1,321 
Total gross carried claim and claim adjustment expense reserves$2,686 $2,749 
Net case reserves$129 $137 
Net IBNR reserves239 202 
Total net carried claim and claim adjustment expense reserves$368 $339 
Impact of Office Consolidation on 2024 Results
In the first quarter of 2024, we committed to consolidate some of our offices. As a result, we anticipate a charge of approximately $16 million pretax in 2024 in our Corporate & Other segment.
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INVESTMENTS
Net Investment Income
The significant components of Net investment income are presented in the following table. Fixed income securities, as presented, include both fixed maturity securities and non-redeemable preferred stock.
Years ended December 31
(In millions)20232022
Fixed income securities:
Taxable fixed income securities$1,798 $1,585 
Tax-exempt fixed income securities178 244 
Total fixed income securities1,976 1,829 
Limited partnership and common stock investments202 (31)
Other, net of investment expense86 7 
Net investment income$2,264 $1,805 
Effective income yield for the fixed income securities portfolio4.7 %4.4 %
Limited partnership and common stock return9.4 %(1.4)%
Net investment income increased $459 million in 2023 as compared with 2022 driven by favorable limited partnership returns and higher income from fixed income securities as a result of the rising interest rate environment.
Net Investment (Losses) Gains
The components of Net investment (losses) gains are presented in the following table.
Years ended December 31
(In millions)20232022
Fixed maturity securities:
Corporate bonds and other$(57)$(89)
States, municipalities and political subdivisions10 26 
Asset-backed(44)(34)
Total fixed maturity securities(91)(97)
Non-redeemable preferred stock4 (116)
Derivatives, short term and other(1)22 
Mortgage loans(11)(8)
Net investment losses(99)(199)
Income tax benefit on net investment losses 45 
Net investment losses, after tax$(79)$(154)
Pretax net investment losses decreased $100 million for 2023 as compared with 2022 driven by the favorable change in fair value of non-redeemable preferred stock.
Additionally, Derivatives, short term and other for 2022 included an $18 million non-economic net gain related to the novation of a coinsurance agreement on our legacy annuity business in our Life & Group segment and the associated funds withheld embedded derivative. The coinsurance agreement was novated in the fourth quarter of 2022.
Further information on our investment gains and losses as well as on our derivative financial instruments is set forth in Notes A and B to the Consolidated Financial Statements included under Item 8.
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Portfolio Quality
The following table presents the estimated fair value and net unrealized gains (losses) of our fixed maturity securities by rating distribution.
December 3120232022

(In millions)		Estimated Fair ValueNet Unrealized Gains ( Losses)Estimated Fair ValueNet Unrealized Gains ( Losses)
U.S. Government, Government agencies and Government-sponsored enterprises$2,795 $(298)$2,419 $(336)
AAA2,727 (169)2,398 (208)
AA 6,444 (420)6,342 (663)
A9,910 (223)9,043 (531)
BBB16,670 (744)15,651 (1,447)
Non-investment grade1,879 (119)1,774 (219)
Total$40,425 $(1,973)$37,627 $(3,404)
As of December 31, 2023 and 2022, 1% of our fixed maturity portfolio was rated internally. AAA rated securities included $0.2 billion and $0.3 billion of prefunded municipal bonds as of December 31, 2023 and 2022.
The following table presents available-for-sale fixed maturity securities in a gross unrealized loss position by ratings distribution.
December 31, 2023
(In millions)Estimated Fair ValueGross Unrealized Losses
U.S. Government, Government agencies and Government-sponsored enterprises$2,273 $309 
AAA1,524 261 
AA3,817 658 
A5,652 517 
BBB11,523 1,095 
Non-investment grade942 155 
Total$25,731 $2,995 
The following table presents the maturity profile for these available-for-sale fixed maturity securities. Securities not due to mature on a single date are allocated based on weighted average life.
December 31, 2023
(In millions)Estimated Fair ValueGross Unrealized Losses
Due in one year or less$974 $33 
Due after one year through five years8,197 468 
Due after five years through ten years8,058 1,058 
Due after ten years8,502 1,436 
Total$25,731 $2,995 
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Commercial Real Estate
Our investment portfolio has exposure to the commercial real estate sector primarily through our fixed maturity securities and mortgage loan portfolios. The performance of these assets is dependent on a number of factors, including the performance of the underlying collateral (which is influenced by cash flows from underlying property leases), changes in the fair value of collateral, refinancing risk, and the creditworthiness of tenants of credit tenant loan properties (where lease payments directly service the loan).
Within our fixed maturity securities portfolio, our exposure is primarily through our commercial mortgage-backed securities portfolio and our corporate and other bonds portfolio, which contains obligations of real estate investment trust (REIT) issuers. Commercial mortgage-backed securities include both single asset, single borrower collateral that is securitized independently and conduit collateral that is securitized in diversified pools.
The following tables present the estimated fair value and net unrealized gains (losses) of our commercial mortgage-backed securities by property type and by ratings distribution.
December 31, 2023
(In millions)Estimated Fair ValueNet Unrealized Gains (Losses)
Commercial mortgage-backed:
Single asset, single borrower:
Office$306 $(70)
Retail283 (28)
Lodging227 (23)
Industrial93 (4)
Multifamily59 (3)
Total single asset, single borrower968 (128)
Conduits (multi property, multi borrower pools)663 (95)
Total commercial mortgage-backed$1,631 $(223)
December 31, 2023
(In millions)Estimated Fair ValueNet Unrealized Gains (Losses)
Commercial mortgage-backed:
AAA$570 $(27)
AA594 (95)
A202 (30)
BBB216 (45)
Non-investment grade49 (26)
Total commercial mortgage-backed$1,631 $(223)

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The following tables present the estimated fair value and net unrealized gains (losses) of the REIT issuer exposure within our corporate and other bonds portfolio by property type and by ratings distribution.
December 31, 2023
(In millions)Estimated Fair ValueNet Unrealized Gains (Losses)
Corporate and other bonds - REITs:
Retail$515 $(25)
Office250 (20)
Industrial99 (1)
Other (1)
452 (22)
Total corporate and other bonds - REITs$1,316 $(68)
(1) Other includes a diversified mix of property type strategies including self-storage, healthcare and apartments.
December 31, 2023
(In millions)Estimated Fair ValueNet Unrealized Gains (Losses)
Corporate and other bonds - REITs:
AA$10 $— 
A285 (3)
BBB994 (64)
Non-investment grade27 (1)
Total corporate and other bonds - REITs$1,316 $(68)
Mortgage loans are commercial in nature and are carried at unpaid principal balance, net of unamortized fees and an allowance for expected credit losses. The allowance for expected credit losses is developed by assessing the credit quality of pools of mortgage loans in good standing using debt service coverage ratios (DSCR) and loan-to-value ratios (LTV). This assessment utilizes historical credit loss experience adjusted to reflect current conditions and reasonable and supportable forecasts. As of December 31, 2023 the allowance for expected credit losses on our mortgage portfolio was $35 million, or 3.3% of our amortized cost basis.
The following table presents the amortized cost basis of mortgage loans by property type.
December 31, 2023
(In millions)Amortized CostPercentage of Total
Mortgage loans:
Retail$520 48 %
Office245 23 %
Industrial124 12 %
Other 181 17 %
Total mortgage loans1,070 100 %
Less: Allowance for expected credit losses(35)
Total mortgage loans - net of allowance$1,035 

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In addition to our mortgage loan portfolio, we invest in securitized credit tenant loans and ground lease financings that are classified as fixed maturity securities and are largely investment grade quality. As of December 31, 2023, these holdings had an estimated fair value of $479 million and net unrealized losses of $87 million.
We own other fixed maturity securities which have exposure to cell towers, data centers and other collateral types that could be viewed as having real estate characteristics. We view these securities to have risks more akin to operating enterprises that do not share the same risks as the broader commercial real estate market.
We do not hold any direct investments in commercial real estate. Additionally, we do not have significant exposure through our limited partnership portfolio to funds whose primary strategy is real estate focused.
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Duration
A primary objective in the management of the investment portfolio is to optimize return relative to the corresponding liabilities and respective liquidity needs. Our views on the current interest rate environment, tax regulations, asset class valuations, specific security issuer and broader industry segment conditions as well as domestic and global economic conditions, are some of the factors that enter into an investment decision. We also continually monitor exposure to issuers of securities held and broader industry sector exposures and may from time to time adjust such exposures based on our views of a specific issuer or industry sector.
A further consideration in the management of the investment portfolio is the characteristics of the corresponding liabilities and the ability to align the duration of the portfolio to those liabilities and to meet future liquidity needs, minimize interest rate risk and maintain a level of income sufficient to support the underlying insurance liabilities. For portfolios where future liability cash flows are determinable and typically long term in nature, we segregate investments for asset/liability management purposes. The segregated investments support the long-term care and structured settlement liabilities in the Life & Group segment.
The effective durations of fixed income securities and short-term investments are presented in the following table. Amounts presented are net of payable and receivable amounts for securities purchased and sold, but not yet settled.
December 3120232022
(In millions)Estimated Fair ValueEffective
Duration
(In years)		Estimated Fair ValueEffective
Duration
(In years)
Investments supporting Life & Group$15,137 10.2 $14,511 9.9 
Other investments27,981 4.5 25,445 4.7 
Total$43,118 6.5 $39,956 6.6 
The investment portfolio is periodically analyzed for changes in duration and related price risk. Certain securities have duration characteristics that are variable based on market interest rates, credit spreads and other factors that may drive variability in the amount and timing of cash flows. Additionally, we periodically review the sensitivity of the portfolio to the level of foreign exchange rates and other factors that contribute to market price changes. 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.
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LIQUIDITY AND CAPITAL RESOURCES
Cash Flows
Our primary operating cash flow sources are premiums and investment income. 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 2023, net cash provided by operating activities was $2,285 million as compared with $2,502 million for 2022. The decrease in cash provided by operating activities was driven by higher net claim payments, which includes long-term care policy buyouts of $193 million, and higher operating expenses partially offset by an increase in premiums collected.
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 2023, net cash used by investing activities was $1,843 million as compared with $1,512 million for 2022. Net cash used or provided by investing activities is primarily driven by cash available from operations and by other factors, such as financing activities.
Cash flows from financing activities may include proceeds from the issuance of debt and equity securities, and outflows for stockholder dividends, repayment of debt and purchases of our common stock.
For 2023, net cash used by financing activities was $577 million as compared with $1,032 million for 2022. Financing activities for the periods presented include:
•In 2023, we paid dividends of $787 million and repurchased 550,000 shares of our common stock at an aggregate cost of $24 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 2022, we paid dividends of $982 million and repurchased 890,000 shares of our common stock at an aggregate cost of $39 million.
Liquidity
We believe that our present cash flows from operating, investing and financing activities are sufficient to fund our current and expected working capital and debt obligation needs and we do not expect this to change in the near term. There are currently no amounts outstanding under our $250 million senior unsecured revolving credit facility, which was amended and restated during the fourth quarter of 2023, and no borrowings outstanding through our membership in the Federal Home Loan Bank of Chicago (FHLBC). Further information on our Second Amended and Restated Credit Agreement is in Note I to the Consolidated Financial Statements included under Item 8.
CCC paid dividends of $1,055 million and $990 million to CNAF during 2023 and 2022.
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.
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Common Stock Dividends
Cash dividends of $ per share on our common stock, including a special cash dividend of $1.20 per share, were declared and paid in 2023. On February 2, 2024, our Board of Directors declared a quarterly cash dividend of $0.44 per share and a special cash dividend of $2.00 per share, payable March 7, 2024 to stockholders of record on February 20, 2024. The declaration and payment of future dividends to holders of our common stock will be at the discretion of our Board of Directors and will depend on many factors, including our earnings, financial condition, business needs and regulatory constraints.
Our ability to pay dividends and satisfy our credit obligations is significantly dependent on receipt of dividends from our subsidiaries. The payment of dividends to us by our insurance subsidiaries without prior approval of the insurance department of each subsidiary's domiciliary jurisdiction is limited by formula. Dividends in excess of these amounts are subject to prior approval by the respective state insurance departments.
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.
A summary of our commitments is presented in the following table.
December 31, 2023
(In millions)TotalLess than 1 year1-3 years3-5 yearsMore than 5 years
Debt (1)
$3,626 $658 $683 $631 $1,654 
Lease obligations (2)
266 37 65 55 109 
Claim and claim adjustment expense reserves (3)
23,864 5,417 6,441 3,448 8,558 
Future policy benefit reserves (4)
27,964 733 1,435 1,629 24,167 
Total (5)
$55,720 $6,845 $8,624 $5,763 $34,488 
(1)    Includes estimated future interest payments.
(2)    The lease obligations reflected above are not discounted and include additional operating lease commitments that have not yet commenced.
(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, 2023. See the Reserves - Estimates and Uncertainties section of this MD&A for further information.
(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, 2023. See the Reserves - Estimates and Uncertainties section of this MD&A for further information.
(5)    Does not include investment commitments of approximately $1,555 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.
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.
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Ratings
Ratings are an important factor in establishing the competitive position of insurance companies. Our insurance company subsidiaries are rated by major rating agencies and these ratings reflect the rating agency's opinion of the insurance company's financial strength, operating performance, strategic position and ability to meet its obligations to policyholders. Agency ratings are not a recommendation to buy, sell or hold any security and may be revised or withdrawn at any time by the issuing organization. Each agency's rating should be evaluated independently of any other agency's rating. One or more of these agencies could take action in the future to change the ratings of our insurance subsidiaries.
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, 2023Insurer Financial Strength RatingsSenior Debt Ratings
A.M. BestAbbb+
Moody'sA2Baa2
S&PA+A-
FitchA+BBB+
A.M. Best, Moody’s, S&P and Fitch maintain stable outlooks across the Company’s Financial Strength and Senior Debt Ratings.
CNA Insurance Company Limited and CNA Insurance Company (Europe) S.A. are included within S&P’s Insurer Financial Strength Rating for the Company. Syndicate 382 benefits from the Financial Strength Rating of Lloyd’s, which is rated AA- by S&P with a stable outlook and A by A.M. Best with a positive outlook.

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ACCOUNTING STANDARDS UPDATE
For a discussion of Accounting Standards, see Note A to the Consolidated Financial Statements included under Item 8.
RECENT TAX LEGISLATION
Corporate Alternative Minimum Tax
The Inflation Reduction Act was enacted on August 16, 2022, and includes, among other provisions, a corporate alternative minimum tax (CAMT) of 15%, effective January 1, 2023, imposed on the adjusted financial statement income (AFSI) of an applicable corporation whose average annual AFSI over three prior years exceeds $1 billion. Based on interpretations of the CAMT and current guidance, we believe that the CAMT has no impact on our financial results for the year ended December 31, 2023. Along with Loews, we will continue to monitor as additional technical guidance from the U.S. Department of Treasury, including forthcoming proposed regulations, becomes available.
Pillar Two
The Organization for Economic Co-operation and Development/G20 Inclusive Framework on Base Erosion and Profit Shifting has introduced rules to establish a global minimum corporate tax rate of 15%, commonly referred to as the Pillar Two rules. Numerous foreign countries have enacted legislation to implement the Pillar Two rules, effective beginning in 2024, or are expected to enact similar legislation. We are currently evaluating the potential impacts that Pillar Two may have on future periods and will continue to monitor the implementation of the Pillar Two rules in the jurisdictions in which we operate.
FORWARD-LOOKING STATEMENTS
This report contains a number of forward-looking statements which relate to anticipated future events rather than actual present conditions or historical events. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. Forward-looking statements in this report include any and all statements regarding expected developments in our insurance business, including losses and loss reserves (note that loss reserves for long-term care, A&EP and other mass tort claims are more uncertain, and therefore more difficult to estimate than loss reserves respecting traditional property and casualty exposures); the impact of routine ongoing insurance reserve reviews we conduct; our expectations concerning our revenues, earnings, expenses and investment activities; volatility in investment returns; and our proposed actions in response to trends in our business. Forward-looking statements, by their nature, are subject to a variety of inherent risks and uncertainties that could cause actual results to differ materially from the results projected in the forward-looking statements. We cannot control many of these risks and uncertainties. Material risks and uncertainties are addressed in Part I, Item IA Risk Factors and include, but are not limited to, the following:
Company-Specific Factors
•the risks and uncertainties associated with our insurance reserves, as outlined in the Critical Accounting Estimates and the Reserves - Estimates and Uncertainties sections of this report, including the sufficiency of the reserves and the possibility for future increases, which would be reflected in the results of operations in the period that the need for such adjustment is determined;
•the risk that the other parties to the transactions in which, subject to certain limitations, we ceded our legacy A&EP and EWC liabilities, respectively, will not fully perform their respective obligations to CNA, the uncertainty in estimating loss reserves for A&EP and EWC liabilities and the possible continued exposure of CNA to liabilities for A&EP and EWC claims that are not covered under the terms of the respective transactions; and
•the performance of reinsurance companies under reinsurance contracts with us.


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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 to our lines of business and inflationary pressures 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 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, on the frequency of claims;
•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, 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; 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.
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), 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.
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
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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.
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.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our financial instruments are exposed to various market risks, such as interest rate risk, equity price risk and foreign currency risk. Due to the level of risk associated with certain invested assets and the level of uncertainty related to changes in the value of these assets, it is possible that changes in these risks in the near term could have a material adverse impact on our results of operations, financial condition or equity.
Discussions herein regarding market risk focus on only one element of market risk, which is price risk. Price risk relates to changes in the level of prices due to changes in interest rates, equity prices, foreign exchange rates or other factors such as credit spreads. The fair value of our financial instruments is generally adversely affected when interest rates rise, equity markets decline or the dollar strengthens against foreign currency.
Active management of market risk is integral to our operations. We may take the following actions to manage our exposure to market risk within defined tolerance ranges: (1) change the character of future investments purchased or sold or (2) use derivatives to offset the market behavior of existing assets and liabilities or assets expected to be purchased and liabilities expected to be incurred.
Sensitivity Analysis
We monitor our sensitivity to interest rate changes by revaluing financial assets and liabilities using a variety of different interest rates. We use duration and convexity at the security level to estimate the change in fair value that would result from a change in each security's yield. Duration measures the price sensitivity of an asset to changes in yield. Convexity measures how the duration of the asset changes with interest rates. The duration and convexity analysis takes into account the unique characteristics (e.g., call and put options and prepayment expectations) of each security in determining the hypothetical change in fair value. The analysis is performed at the security level and aggregated up to the asset category levels for reporting in the tables below.
The evaluation is performed by applying an instantaneous change in yield rates of varying magnitudes on a static balance sheet to determine the effect such a change in rates would have on our fair value at risk and the resulting effect on stockholders' equity. The analysis presents the sensitivity of the fair value of our financial instruments to selected changes in capital market rates and index levels. The range of change chosen reflects our view of changes that are reasonably possible over a one-year period. The selection of the range of values chosen to represent changes in interest rates should not be construed as our prediction of future market events, but rather an illustration of the impact of such events.
The sensitivity analysis estimates the decline in the fair value of our interest sensitive assets and liabilities that were held as of December 31, 2023 and 2022 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, 2023 and 2022, with all other variables held constant.
Equity price risk was measured assuming an instantaneous 10% and 25% decline in the S&P 500 from its level as of December 31, 2023 and 2022, 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. 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.
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The following tables present the estimated effects on the fair value of our financial instruments as of December 31, 2023 and 2022 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.
Market Risk Scenario 1
December 31, 2023Increase (Decrease)
(In millions)Estimated Fair ValueInterest Rate RiskForeign Currency RiskEquity Price Risk
Assets:
Fixed maturity securities$40,425 $(2,779)$(319)$— 
Equity securities683 (14)— (19)
Limited partnership investments2,174 — (1)(87)
Other invested assets80 — (7)— 
Mortgage loans (1)
997 (34)— — 
Short-term investments2,165 (2)(19)— 
Total assets46,524 (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 $(112)$— $— 
December 31, 2022Increase (Decrease)
(In millions)Estimated Fair ValueInterest Rate RiskForeign Currency RiskEquity Price Risk
Assets:
Fixed maturity securities$37,627 $(2,603)$(266)$— 
Equity securities674 (18)— (18)
Limited partnership investments1,926 — — (77)
Other invested assets78 — (7)— 
Mortgage loans (1)
973 (38)— — 
Short-term investments1,832 (2)(21)— 
Total assets43,110 (2,661)(294)(95)
Derivative financial instruments, included in Other liabilities(1)— 1 — 
Total$43,109 $(2,661)$(293)$(95)
Short-term debt (2)
$248 $(2)$— $— 
Long-term debt (2)
2,349 (92)— — 
Total debt$2,597 $(94)$— $— 
(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.
(2)    Reported at amortized value in the Consolidated Balance Sheets included under Item 8 and not adjusted for fair value changes.
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The following tables present the estimated effects on the fair value of our financial instruments as of December 31, 2023 and 2022 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.
Market Risk Scenario 2
December 31, 2023Increase (Decrease)
(In millions)Estimated Fair ValueInterest Rate RiskForeign Currency RiskEquity Price Risk
Assets:
Fixed maturity securities$40,425 $(4,166)$(638)$— 
Equity securities683 (22)— (48)
Limited partnership investments2,174 — (1)(217)
Other invested assets80 — (15)— 
Mortgage loans (1)
997 (51)— — 
Short-term investments2,165 (4)(38)— 
Total assets46,524 (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 $(168)$— $— 
December 31, 2022Increase (Decrease)
(In millions)Estimated Fair ValueInterest Rate RiskForeign Currency RiskEquity Price Risk
Assets:
Fixed maturity securities$37,627 $(3,902)$(532)$— 
Equity securities674 (26)— (46)
Limited partnership investments1,926 — — (193)
Other invested assets78 — (14)— 
Mortgage loans (1)
973 (57)— — 
Short-term investments1,832 (3)(41)— 
Total assets43,110 (3,988)(587)(239)
Derivative financial instruments, included in Other liabilities(1)— 2 — 
Total$43,109 $(3,988)$(585)$(239)
Short-term debt (2)
$248 $(3)$— $— 
Long-term debt (2)
2,349 (138)— — 
Total debt$2,597 $(141)$— $— 
(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.
(2)    Reported at amortized value in the Consolidated Balance Sheets included under Item 8 and not adjusted for fair value changes.
Changes in discount rates used to measure our liability for future policyholder benefits (LFPB) would reduce the impact of the decrease in Fixed maturity securities within Other comprehensive income. The carrying value of the LFPB was $14.0 billion and $13.5 billion as of December 31, 2023 and 2022. The estimated decrease in the carrying value of the LFPB as of December 31, 2023 and 2022 due to an increase in yield rates of 100 basis points was $1.5 billion. The estimated decrease in the carrying value of the LFPB as of December 31, 2023 and 2022 due to an increase in yield rates of 150 basis points was $2.1 billion. We have estimated the change in the carrying value of the LFPB due to interest rate changes by discounting the expected future cash flows using different interest rate scenarios.
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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
CNA Financial Corporation
Consolidated Statements of Operations
Years ended December 31
(In millions, except per share data)2023
2022 (1)
2021 (1)
Revenues
Net earned premiums$ $ $ 
Net investment income   
Net investment (losses) gains()() 
Non-insurance warranty revenue   
Other revenues   
Total revenues   
Claims, Benefits and Expenses
Insurance claims and policyholders’ benefits (re-measurement gain (loss) of $(), $(), and $())
   
Amortization of deferred acquisition costs   
Non-insurance warranty expense   
Other operating expenses    
Interest   
Total claims, benefits and expenses   
Income before income tax   
Income tax expense()()()
Net income$ $ $ 
Basic earnings per share$ $ $ 
Diluted earnings per share$ $ $ 
Weighted Average Outstanding Common Stock and Common Stock Equivalents
Basic
Diluted
(1)
The accompanying Notes are an integral part of these Consolidated Financial Statements.

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CNA Financial Corporation
Consolidated Statements of Comprehensive Income (Loss)
Years ended December 31
(In millions)2023
2022 (1)
2021 (1)
Comprehensive Income (Loss)
Net income $ $ $ 
Other Comprehensive Income (Loss), net of tax
Changes in:
Net unrealized gains and losses on investments with an allowance for credit losses()()()
Net unrealized gains and losses on other investments ()()
Net unrealized gains and losses on investments ()()
Impact of changes in discount rates used to measure long-duration contract liabilities()  
Foreign currency translation adjustment ()()
Pension and postretirement benefits   
Other comprehensive income (loss), net of tax () 
Total comprehensive income (loss)$ $()$ 
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
The accompanying Notes are an integral part of these Consolidated Financial Statements.
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CNA Financial Corporation
Consolidated Balance Sheets
December 31
(In millions, except share data)2023
2022 (1)
Assets  
Investments:  
Fixed maturity securities at fair value (amortized cost of $ and $, less allowance for credit loss of $ and $)
$ $ 
Equity securities at fair value (cost of $ and $)
  
Limited partnership investments  
Other invested assets  
Mortgage loans (less allowance for credit loss of $ and $)
  
Short-term investments  
Total investments  
Cash  
Reinsurance receivables (less allowance for uncollectible receivables of $ and $)
  
Insurance receivables (less allowance for uncollectible receivables of $ and $)
  
Accrued investment income  
Deferred acquisition costs  
Deferred income taxes  
Property and equipment at cost (less accumulated depreciation of $ and $)
  
Goodwill  
Deferred non-insurance warranty acquisition expense  
Other assets (includes $ and $ due from Loews Corporation)
  
Total assets$ $ 
Liabilities  
Insurance reserves: 
Claim and claim adjustment expenses$ $ 
Unearned premiums  
Future policy benefits  
Short-term debt  
Long-term debt  
Deferred non-insurance warranty revenue  
Other liabilities (includes $ and $ due to Loews Corporation)
  
Total liabilities  
Commitments and contingencies (Notes B and G)
Stockholders' Equity  
Common stock ($ par value; shares authorized; shares issued; and shares outstanding)
  
Additional paid-in capital  
Retained earnings  
Accumulated other comprehensive loss()()
Treasury stock ( and shares), at cost
()()
Total stockholders’ equity  
Total liabilities and stockholders' equity$ $ 
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
The accompanying Notes are an integral part of these Consolidated Financial Statements.
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CNA Financial Corporation
Consolidated Statements of Cash Flows
Years ended December 31
(In millions)2023
2022 (1)
2021 (1)
Cash Flows from Operating Activities  
Net income$ $ $ 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Deferred income tax expense (benefit) () 
Trading portfolio activity   
Net investment losses (gains)  ()
Equity method investees() ()
Net amortization of investments()()()
Depreciation and amortization   
Changes in:
Receivables, net()()()
Accrued investment income()() 
Deferred acquisition costs()()()
Insurance reserves   
Other, net()()()
Net cash flows provided by operating activities   
Cash Flows from Investing Activities  
Dispositions:
Fixed maturity securities - sales   
Fixed maturity securities - maturities, calls and redemptions   
Equity securities   
Limited partnerships   
Mortgage loans   
Purchases:
Fixed maturity securities()()()
Equity securities()()()
Limited partnerships()()()
Mortgage loans()()()
Change in other investments() ()
Change in short-term investments() ()
Purchases of property and equipment()()()
Other, net()() 
Net cash flows used by investing activities()()()
Cash Flows from Financing Activities
Dividends paid to common stockholders()()()
Proceeds from the issuance of debt   
Repayment of debt()  
Purchase of treasury stock()()()
Other, net()()()
Net cash flows used by financing activities()()()
Effect of foreign exchange rate changes on cash ()()
Net change in cash()() 
Cash, beginning of year   
Cash, end of year$ $ $ 
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
The accompanying Notes are an integral part of these Consolidated Financial Statements.
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CNA Financial Corporation
Consolidated Statements of Stockholders' Equity
Years ended December 31
(In millions)2023
2022 (1)
2021 (1)
Common Stock
Balance, beginning of year$ $ $ 
Balance, end of year   
Additional Paid-in Capital
Balance, beginning of year   
Stock-based compensation   
Balance, end of year   
Retained Earnings
Balance, beginning of year, as previously reported   
Cumulative effect adjustments from changes in accounting guidance, net of tax()()()
Balance, beginning of year, as adjusted   
Dividends to common stockholders ($, $, and $ per share)
()()()
Net income   
Balance, end of year   
Accumulated Other Comprehensive (Loss)
Balance, beginning of year, as previously reported()  
Cumulative effect adjustments from changes in accounting guidance, net of tax()()()
Balance, beginning of year, as adjusted()()()
Other comprehensive income (loss)  () 
Balance, end of year()()()
Treasury Stock
Balance, beginning of year()()()
Stock-based compensation   
Purchase of treasury stock ()()()
Balance, end of year()()()
Total stockholders' equity$ $ $ 
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
The accompanying Notes are an integral part of these Consolidated Financial Statements.

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CNA Financial Corporation
Notes to Consolidated Financial Statements
Note A.
% of the outstanding common stock of CNAF as of December 31, 2023.
Recently Adopted Accounting Standards Updates (ASU)
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Explanation of ASU 2018-12 Transition Impacts:
 
Reclassification of reserves for policyholders currently receiving benefits to Future policy benefits (1)
 De-recognition of shadow reserves()Re-measurement using an upper-medium grade fixed income instrument yield discount rate Other adjustments Balance as of January 1, 2021, as adjusted$ 
(1) In conjunction with the adoption of ASU 2018-12, at January 1, 2023, the Company reclassified the long-term care reserves for policyholders currently receiving benefits from Claim and claim adjustment expenses to Future policy benefits. This change was applied retrospectively as of January 1, 2021.
Shadow reserves associated with the Company’s long-term care business were de-recognized as of the transition date in Accumulated other comprehensive income (AOCI). The effect of re-measuring the LFPB at the single-A discount rate as of the transition date was similarly recorded in AOCI. The Company did not have any cohorts for which the NPR exceeded 100% at the transition date.
The Company’s practice under legacy accounting guidance was to calculate and record premium deficiency reserves at the policy level. Accordingly, an allocation methodology was not required to assign historical premium deficiency reserves to cohorts upon transition to ASU 2018-12.
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 $ De-recognition of shadow reserves  Re-measurement of LFPB using an upper-medium grade fixed income instrument yield discount rate()      Other adjustments ()Balance as of January 1, 2021, as adjusted$()$ 
The effects of adoption of ASU 2018-12 on the Consolidated Statement of Operations for the year ended December 31, 2022 were as follows:

(In millions)
Prior to AdoptionEffect of Adoption As reported
Insurance claims and policyholders’ benefits (1)
$ $ $ 
Income (loss) before income tax () 
Income tax (expense) benefit() ()
Net income () 
Basic earnings (loss) per share () 
Diluted earnings (loss) per share () 
(1) The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain (loss) of $() million, which is presented parenthetically on the Consolidated Statement of Operations.
The effects of adoption of ASU 2018-12 on the Consolidated Statement of Operations for the year ended December 31, 2021 were as follows:

(In millions)
Prior to AdoptionEffect of Adoption As reported
Insurance claims and policyholders’ benefits (1)
$ $ $ 
Income (loss) before income tax () 
Income tax (expense) benefit() ()
Net income () 
Basic earnings (loss) per share () 
Diluted earnings (loss) per share () 
(1) The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain (loss) of $() million, which is presented parenthetically on the Consolidated Statement of Operations.
The effects of adoption of ASU 2018-12 on the Consolidated Balance Sheet as of December 31, 2022 were as follows:

(In millions)
Prior to AdoptionEffect of AdoptionAs reported
Deferred income taxes$ $ $ 
Total assets   
Claim and claim adjustment expenses (1)
 () 
Future policy benefits (1)
   
Total liabilities   
Retained earnings () 
Accumulated other comprehensive income (loss)()()()
Total stockholders' equity () 
(1) In conjunction with the adoption of ASU 2018-12, at January 1, 2023, the Company reclassified the long-term care reserves for policyholders currently receiving benefits from Claim and claim adjustment expenses to Future policy benefits. This change was applied retrospectively as of January 1, 2021.
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)$()$()Net unrealized gains and losses on investments()()()Impact of changes in discount rates used to measure long-duration contract liabilities   Other comprehensive income (loss), net of tax() ()Total comprehensive income (loss)() ()
The effects of adoption of ASU 2018-12 on the Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2021 were as follows:

(In millions)
Prior to AdoptionEffect of AdoptionAs reported
Changes in: Net unrealized gains and losses on other investments$()$()$()
Net unrealized gains and losses on investments()()()
Impact of changes in discount rates used to measure long-duration contract liabilities   
Other comprehensive income (loss), net of tax()  
Total comprehensive income (loss)   
The effects of adoption of ASU 2018-12 on the Consolidated Statement of Cash Flows for the year ended December 31, 2022 were as follows:

(In millions)
Prior to AdoptionEffect of AdoptionAs reported
Net income$ $()$ 
Deferred income tax expense (benefit)()()()
Changes in: Insurance reserves   
The effects of adoption of ASU 2018-12 on the Consolidated Statement of Cash Flows for the year ended December 31, 2021 were as follows:

(In millions)
Prior to AdoptionEffect of AdoptionAs reported
Net income$ $()$ 
Deferred income tax expense (benefit) () 
Changes in: Insurance reserves   
)    )) )   )) )) ))
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 million and $ million of overseas deposits within Other invested assets, which can be redeemed at net asset value in 90 days or less. Overseas deposits are excluded from the fair value hierarchy because their fair value is recorded using the net asset value per share (or equivalent) practical expedient.
Other Liabilities
Level 2 securities include currency forward contracts valued using observable market forward rates.
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 Discounted cash flowCredit spread
% - % (%)
December 31, 2022Estimated Fair Value
(In millions)		Valuation Technique(s)Unobservable Input(s)Range
 (Weighted Average)
Fixed maturity securities$ Discounted cash flowCredit spread
% - % (%)
For fixed maturity securities, an increase to the credit spread assumptions would result in a lower fair value measurement.
Financial Assets and Liabilities Not Measured at Fair Value
 $ $ $ $ LiabilitiesShort-term debt$ $ $ $ $ Long-term debt     
December 31, 2022Carrying
Amount		Estimated Fair Value
(In millions)Level 1Level 2Level 3Total
Assets
Mortgage loans$ $ $ $ $ 
Liabilities
Short-term debt$ $ $ $ $ 
Long-term debt     
The carrying amounts reported on the Consolidated Balance Sheets for Cash, Short-term investments not carried at fair value, Accrued investment income and certain Other assets and Other liabilities approximate fair value due to the short term nature of these items. These assets and liabilities are not listed in the tables above.
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Note D.
 million, $ million and $ million to Loews related to federal income taxes.
For 2021 through 2023, Loews and the Company participate in the Internal Revenue Service (IRS) Compliance Assurance Process (CAP), which is a voluntary program for large corporations. Under CAP, the IRS conducts a real-time audit and works contemporaneously with the Company to resolve any issues prior to the filing of the tax return. For 2021 and 2023, the Company was selected to participate in the phase of CAP reserved for taxpayers whose risk of noncompliance does not warrant use of IRS resources. The Company believes that this approach should reduce tax-related uncertainties, if any.
As of December 31, 2023 and 2022, there were unrecognized tax benefits.
The Company recognizes interest accrued related to unrecognized tax benefits and tax refund claims in Income tax (expense) benefit on the Consolidated Statements of Operations. The Company recognizes penalties (if any) in Income tax (expense) benefit on the Consolidated Statements of Operations. During 2023, 2022 and 2021 the Company recognized interest and penalties. There were amounts accrued for interest or penalties as of December 31, 2023 or 2022.
)$()$()Tax benefit from tax exempt income   Foreign taxes and credits() ()State income tax expense()()()Other tax expense()()()Income tax expense$()$()$()
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
As of December 31, 2023, deferred taxes are required on the undistributed earnings of subsidiaries subject to tax.
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)$()$()Deferred tax (expense) benefit() ()Total income tax expense$()$()$()
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
Total income tax presented above includes foreign tax expense of approximately $ million, $ million and $ million related to pretax income from foreign operations of approximately $ million, $ million and $ million for the years ended December 31, 2023, 2022 and 2021. Foreign tax expense for the year ended December 31, 2022 included a $ million tax benefit for the revaluation of net deferred tax assets related to a U.K. tax rate change.
 $ Unearned premium reserves  Policyholder reserves  Deferred Revenue  Employee benefits  Deferred retroactive reinsurance benefit  Net unrealized losses  Other assets  Gross deferred tax assets  Deferred Tax Liabilities:Investment valuation differences  Deferred acquisition costs  Net unrealized gains  Software and hardware  Other liabilities  Gross deferred tax liabilities  Net deferred tax asset$ $ 
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
As of December 31, 2023, the CNA Tax Group had loss carryforwards and a tax credit carryforward of $ million which expires in 2033. The foreign operations had loss carryforwards of $ million, which have no expiration. The foreign operations had a tax credit carryforward of $ million, which has no expiration.
Although realization of deferred tax assets is not assured, management believes it is more likely than not that the recognized net deferred tax asset will be realized through recoupment of ordinary and capital taxes paid in prior carryback years and through future earnings, reversal of existing temporary differences and available tax planning strategies. As a result, valuation allowance was recorded as of December 31, 2023 or 2022.
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Note E.
 Commercial International 
Life & Group (1)
 Corporate & Other Total net claim and claim adjustment expenses 
Reinsurance receivables: (2)
Specialty Commercial International Life & Group 
Corporate & Other (3)
 Total reinsurance receivables Total gross liability for unpaid claim and claim adjustment expenses$ 
(1) The Life & Group segment amounts are related to unfunded structured settlements arising from short-duration contracts.
(2) Reinsurance receivables presented are gross of the allowance for uncollectible reinsurance and do not include reinsurance receivables related to paid losses.
(3) The Corporate & Other Reinsurance receivables are primarily related to A&EP claims covered under the A&EP Loss Portfolio Transfer (LPT).
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 $ $ Ceded   Net reserves, beginning of year   Reduction of net reserves due to Excess Workers' Compensation Loss Portfolio Transfer  ()Net incurred claim and claim adjustment expenses:Provision for insured events of current year   Increase (decrease) in provision for insured events of prior years () Amortization of discount   
Total net incurred (2)
   Net payments attributable to:Current year events()()()Prior year events()()()Total net payments()()()Foreign currency translation adjustment and other ()()Net reserves, end of year   Ceded reserves, end of year   Gross reserves, end of year$ $ $ 
(1) In conjunction with the Company's adoption of ASU 2018-12, at January 1, 2023, long-term care reserves for policyholders currently receiving benefits were reclassified from Claim and claim adjustment expenses into Future policy benefits and this change was applied retrospectively as of January 1, 2021. See Note A to the Consolidated Financial Statements for additional information.
(2) Total net incurred does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, the loss on the Excess Workers' Compensation LPT (EWC LPT) and uncollectible reinsurance, which are not reflected in the table above.
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 $ $ $ $ $ Gross IBNR Reserves      Total Gross Carried Claim and Claim Adjustment Expense Reserves$ $ $ $ $ $ Net Case Reserves$ $ $ $ $ $ Net IBNR Reserves      Total Net Carried Claim and Claim Adjustment Expense Reserves$ $ $ $ $ $ 
December 31, 2022 Specialty CommercialInternational
Life & Group(1)
Corporate & OtherTotal
(In millions)
Gross Case Reserves$ $ $ $ $ $ 
Gross IBNR Reserves      
Total Gross Carried Claim and Claim Adjustment Expense Reserves$ $ $ $ $ $ 
Net Case Reserves$ $ $ $ $ $ 
Net IBNR Reserves      
Total Net Carried Claim and Claim Adjustment Expense Reserves$ $ $ $ $ $ 
Net Prior Year Development
Changes in estimates of claim and claim adjustment expense reserves, net of reinsurance, for prior years are defined as net prior year loss reserve development (development). These changes can be favorable or unfavorable.
)$()$()Commercial()()()International () Corporate & Other  Total pretax (favorable) unfavorable development$ $()$ 
Unfavorable development of $71 million, $ million, and $ million was recorded within the Corporate & Other segment for the years ended December 31, 2023, 2022, and 2021 largely associated with legacy mass tort abuse claims. The 2022 unfavorable development also included the Diocese of Rochester proposed settlement.
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 $ $ Other Professional Liability and Management Liability   Surety()()()Warranty()()()Other()()()Total pretax (favorable) unfavorable development$()$()$()
2023
Unfavorable development in other professional liability and management liability was primarily due to higher than expected claim severity and frequency in the Company’s professional errors and omissions (E&O) businesses in multiple accident years.
Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in multiple accident years.
Favorable development in warranty was due to lower than expected loss emergence in a recent accident year.
2022
Unfavorable development in medical professional liability was due to higher than expected large loss activity in multiple accident years.
Unfavorable development in other professional liability and management liability was due to higher than expected claim severity and frequency in the Company’s cyber and professional E&O businesses in multiple accident years.
Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in recent accident years.
Favorable development in warranty was due to lower than expected loss emergence in a recent accident year.
2021
Unfavorable development in medical professional liability was due to higher than expected large loss activity in recent accident years.
Unfavorable development in other professional liability and management liability was due to higher than expected frequency of large losses in multiple accident years, and higher than expected claim severity and frequency in the Company’s cyber business in recent accident years.
Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in recent accident years.
Favorable development in warranty was due to lower than expected loss emergence in a recent accident year.
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 Other Professional Liability and Management Liability Surety Warranty Other Total net liability for unpaid claim and claim adjustment expenses$ 

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 $ $ $ $ $ $ $ $ $ $  2015           2016          2017         2018        2019       2020      2021     2022    2023   Total$ $ 
 $ $ $ $ $ $ $ $ $ 2015         2016        2017       2018      2019     2020    2021   2022  2023 Total$ Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$ Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2014 Liability for unallocated claim adjustment expenses for accident years presented Total net liability for unpaid claim and claim adjustment expenses$             
 $ $()$ $()$()$()$ $()$ 2015  ()() ()()() 2016 ()   ()  2017   () () 2018      2019   () 2020()()()()2021()()()2022  Total net development for the accident years presented above   Total net development for accident years prior to 2014 ()()Total unallocated claim adjustment expense development   Total$ $ $ 
(1) Data presented for these calendar years is required supplemental information, which is unaudited.

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 $ $ $ $ $ $ $ $ $ $  2015           2016          2017         2018        2019       2020      2021     2022    2023   Total$ $  $ $ $ $ $ $ $ $ $ 2015         2016        2017       2018      2019     2020    2021   2022  2023 Total$ Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$ Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2014 Liability for unallocated claim adjustment expenses for accident years presented Total net liability for unpaid claim and claim adjustment expenses$  $()$()$ $ $()$()$ $()$()2015 ()()()    ()2016()   ()()  2017()()()()()()()2018      2019     2020  () 2021 ()()2022()()Total net development for the accident years presented above   Total net development for accident years prior to 2014() ()Total unallocated claim adjustment expense development   Total$ $ $ 
(1) Data presented for these calendar years is required supplemental information, which is unaudited.

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 $ $ $ $ $ $ $ $ $ $  2015           2016          2017         2018        2019       2020      2021     2022    2023   Total$ $  $ $ $ $ $ $ $ $ $ 2015         2016        2017       2018      2019     2020    2021   2022  2023 Total$ Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$ Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2014 Liability for unallocated claim adjustment expenses for accident years presented Total net liability for unpaid claim and claim adjustment expenses$  $()$()$()$()$ $()$()$()$()2015 ()()()()()() ()2016 ()()()()()()()2017()()()()() ()2018()()()()()()2019()()()()()2020()()()()2021()()()2022  Total net development for the accident years presented above()()()Total net development for accident years prior to 2014   Total unallocated claim adjustment expense development   Total$()$()$()
(1) Data presented for these calendar years is required supplemental information, which is unaudited.

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 $ $ General Liability   Workers' Compensation()()()Property and Other()() Total pretax (favorable) unfavorable development$()$()$()
2023
Unfavorable development in commercial auto was due to higher than expected claim severity in the Company’s construction business in a recent accident year.
Unfavorable development in general liability was due to higher than expected claim severity in the Company’s construction and middle market businesses across multiple accident years.
Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.
2022
Unfavorable development in commercial auto and general liability was due to higher than expected claim severity across multiple accident years.
Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.
2021
Unfavorable development in commercial auto was due to higher than expected claim severity in the Company’s middle market and construction businesses in multiple accident years.
Unfavorable development in general liability was due to higher than expected claim severity in the Company’s construction and umbrella businesses in multiple accident years.
Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.
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 General Liability Workers' Compensation Property and Other Total net liability for claim and claim adjustment expenses$ 

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 $ $ $ $ $ $ $ $ $ $  2015           2016          2017         2018        2019       2020      2021     2022    2023   Total$ $  $ $ $ $ $ $ $ $ $ 2015         2016        2017       2018      2019     2020    2021   2022  2023 Total$ Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$ Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2014 Liability for unallocated claim adjustment expenses for accident years presented Total net liability for unpaid claim and claim adjustment expenses$ )$()$()$ $()$ $ $()$ $()2015()() ()() () ()2016()     ()()2017()      2018()     2019     2020() ()()2021() ()2022  Total net development for the accident years presented above   Total net development for accident years prior to 2014   Total unallocated claim adjustment expense development   Total$ $ $ 
(1) Data presented for these calendar years is required supplemental information, which is unaudited.

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 $ $ $ $ $ $ $ $ $ $  2015           2016          2017         2018        2019       2020      2021     2022    2023   Total$ $  $ $ $ $ $ $ $ $ $ 2015         2016        2017       2018      2019     2020    2021   2022  2023 Total$ Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$ Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2014 Liability for unallocated claim adjustment expenses for accident years presented Total net liability for unpaid claim and claim adjustment expenses$  $()$()$ $ $ $ $ $ $ 2015()()       2016        2017   ()   2018() ()   2019     2020()   2021   2022()()Total net development for the accident years presented above   Total net development for accident years prior to 2014 ()()Total unallocated claim adjustment expense development   Total$ $ $ 
(1) Data presented for these calendar years is required supplemental information, which is unaudited.

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 $ $ $ $ $ $ $ $ $ $  2015           2016          2017         2018        2019       2020      2021     2022    2023   Total$ $  $ $ $ $ $ $ $ $ $ 2015         2016        2017       2018      2019     2020    2021   2022  2023 Total$ Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$ Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2014 
Other (2)
()Liability for unallocated claim adjustment expenses for accident years presented Total net liability for unpaid claim and claim adjustment expenses$  $()$()$()$()$()$ $()$()$()2015 () ()()()()()()2016()()()()()()()()2017()()() ()()()2018()()() ()()2019()()()()()2020()()()()2021()()()2022()()Total net development for the accident years presented above()()()Adjustment for development on a discounted basis ()()Total net development for accident years prior to 2014()()()Total unallocated claim adjustment expense development   Total$()$()$()
(1) Data presented for these calendar years is required supplemental information, which is unaudited.
(2) Other includes the effect of discounting lifetime claim reserves.
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)$()$()Specialty () Other()  Total pretax (favorable) unfavorable development $ $()$ 

2023
Favorable development in Commercial was due to lower than expected loss emergence across multiple accident years.
Unfavorable development in Specialty was due to higher than expected large loss emergence in the Company’s medical treatment and professional liability businesses in multiple accident years.
2022
Favorable development in commercial was due to lower than expected loss emergence across multiple accident years.
2021
Favorable development in commercial was due to lower than expected loss emergence across multiple accident years.
Unfavorable development in specialty was due to higher than expected claim severity in the Company’s medical treatment and professional liability businesses in multiple accident years.
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 Hardy Total net liability for claim and claim adjustment expenses$ 

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 $ $ $ $ $ $ $ $ $ $  2015           2016          2017         2018        2019       2020      2021     2022    2023   Total$ $  $ $ $ $ $ $ $ $ $ 2015         2016        2017       2018      2019     2020    2021   2022  2023 Total$ Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$ Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2014 Liability for unallocated claim adjustment expenses for accident years presented Total net liability for unpaid claim and claim adjustment expenses$  $ $()$()$ $ $()$ $ $ 2015 ()()()   ()()2016 ()()()    2017  ()()()  2018  ()   2019 ()   2020()()()()2021()()()2022  
(1) Data presented for these calendar years is required supplemental information, which is unaudited.
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 $ $ $ $ $ $ $ $ $ $() 2015         () 2016          2017       () 2018        2019       2020      2021     2022    2023   Total$ $  $ $ $ $ $ $ $ $ $ 2015         2016        2017       2018      2019     2020    2021   2022  2023 Total$ Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$ Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2014()Liability for unallocated claim adjustment expenses for accident years presented Total net liability for unpaid claim and claim adjustment expenses$ )$()$()$ $ $()$()$()$ $()2015()() ()   ()()2016 ()() ()  ()2017 ()   ()()2018      2019 () () 2020()()()()2021()()()2022()()
(1) Data presented for these calendar years is required supplemental information, which is unaudited.
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 % % % % % % % % % %Other Professional Liability and Management Liability % % % % % % % % % %
Surety(1)
 % % % % % %()%()%()% %CommercialCommercial Auto % % % % % % % % % %General Liability % % % % % % % % % %Workers' Compensation % % % % % % % % % %InternationalInternational - Excluding Hardy % % % % % % % % % %International - Hardy % % % % % % % %()% %
(1) Due to the nature of the Surety business, average annual percentage payout of ultimate net incurred claim and allocated claim adjustment expenses has been calculated using only the payouts of mature accident years presented in the loss reserve development tables.
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billion of net A&EP claim and allocated claim adjustment expense reserves to NICO under a retroactive reinsurance agreement with an aggregate limit of $ billion. The $ billion of claim and allocated claim adjustment expense reserves ceded to NICO was net of $ billion of ceded claim and allocated claim adjustment expense reserves under existing third-party reinsurance contracts. The NICO LPT aggregate reinsurance limit also covers credit risk on the existing third-party reinsurance related to these liabilities. The Company paid NICO a reinsurance premium of $ billion and transferred to NICO billed third-party reinsurance receivables related to A&EP claims with a net book value of $ million, resulting in total consideration of $ billion.
In years subsequent to the effective date of the LPT, the Company recognized adverse prior year development on its A&EP reserves resulting in additional amounts ceded under the LPT. As a result, the cumulative amounts ceded under the LPT have exceeded the $ billion consideration paid, resulting in the NICO LPT moving into a gain position, requiring retroactive reinsurance accounting. Under retroactive reinsurance accounting, this gain is deferred and only recognized in earnings in proportion to actual paid recoveries under the LPT. Over the life of the contract, there is no economic impact as long as any additional losses incurred are within the limit of the LPT. In a period in which the Company recognizes a change in the estimate of A&EP reserves that increases or decreases the amounts ceded under the LPT, the proportion of actual paid recoveries to total ceded losses is affected and the change in the deferred gain is recognized in earnings as if the revised estimate of ceded losses was available at the effective date of the LPT. The effect of the deferred retroactive reinsurance benefit is recorded in Insurance claims and policyholders' benefits in the Consolidated Statements of Operations.
 $ $ Provision for uncollectible third-party reinsurance on A&EP ()()Total additional amounts ceded under LPT   Retroactive reinsurance benefit recognized()()()Pretax impact of deferred retroactive reinsurance$()$()$ 
Net unfavorable prior year development of $ million, $ million and $ million was recognized before consideration of cessions to the LPT for the years ended December 31, 2023, 2022 and 2021. The unfavorable development in 2023, 2022 and 2021 was primarily driven by higher than anticipated defense and indemnity costs on known direct asbestos and environmental accounts and a reduction in estimated reinsurance recoverable. Additionally, in both 2022 and 2021, the Company released $ million of its provision for uncollectible third-party reinsurance. The Company did release any of its provision for uncollectible third-party reinsurance in 2023.
As of December 31, 2023 and 2022, the cumulative amounts ceded under the LPT were $ billion and $ billion. The unrecognized deferred retroactive reinsurance benefit was $ million and $ million as of December 31, 2023 and 2022 and is included within Other liabilities on the Consolidated Balance Sheets.
NICO established a collateral trust account as security for its obligations to the Company. The fair value of the collateral trust account was $ billion as of December 31, 2023. In addition, Berkshire Hathaway Inc. guaranteed the payment obligations of NICO up to the aggregate reinsurance limit as well as certain of NICO’s performance obligations under the trust agreement. NICO is responsible for claims handling and billing and collection from third-party reinsurers related to the majority of the Company’s A&EP claims.
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 million of net EWC claim and allocated claim adjustment expense reserves to Cavello under an LPT with an aggregate limit of $ billion. The Company paid Cavello a reinsurance premium of $ million, less claims paid between January 1, 2020 and the closing date of the agreement of $ million. After transaction costs, the Company recognized an after-tax loss of approximately $ million in the Corporate & Other segment in the first quarter of 2021 related to the EWC LPT.
As of December 31, 2023, the cumulative amount ceded under the EWC LPT was $ million.
Cavello established a collateral trust as security for its obligations to the Company. The fair value of the collateral trust was $ million as of December 31, 2023.
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Note F.
 million pretax increase in the LFPB. Persistency updates were unfavorable due to revisions to lapse rates. Morbidity updates were favorable driven by claim severity assumption updates, and there was a favorable impact from outperformance on premium rate assumptions. Adjusted to reflect the application of the LDTI accounting standard, the cash flow assumption updates completed in the third quarter of 2022 resulted in a $ million pretax increase to the LFPB, primarily driven by the unfavorable impact of increased cost of care inflation offset by favorable premium rate assumptions.
















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 $ $      Effect of changes in discount rate()()()Balance, January 1, at original locked in discount rate   
     Effect of changes in cash flow assumptions (1)
   
     Effect of actual variances from expected experience (1)
()()()Adjusted balance, January 1   Interest accrual        Net premiums: earned during period()()()Balance, end of period at original locked in discount rate        Effect of changes in discount rate   Balance, December 31$ $ $ Present value of future benefits & expensesBalance, January 1$ $ $      Effect of changes in discount rate()()()Balance, January 1, at original locked in discount rate   
     Effect of changes in cash flow assumptions (1)
   
     Effect of actual variances from expected experience (1)
()()()Adjusted balance, January 1   Interest accrual        Benefit & expense payments()()()Balance, end of period at original locked in discount rate        Effect of changes in discount rate   Balance, December 31$ $ $ Net LFPB$ $ $ 
(1) As of December 31, 2023, 2022 and 2021 the re-measurement gain (loss) of $() million, $() million and $() million presented parenthetically on the Consolidated Statement of Operations is comprised of the effect of changes in cash flow assumptions and the effect of actual variances from expected experience.
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 $ $ Interest expense   
The following table presents undiscounted expected future benefit and expense payments, and undiscounted expected future gross premiums.
As of December 31
(In millions)
20232022
  Expected future benefit and expense payments$ $ 
  Expected future gross premiums  
Discounted expected future gross premiums at the upper-medium grade fixed income instrument yield discount rate were $ million and $ million as of December 31, 2023 and 2022.
The weighted average effective duration of the LFPB calculated using the original locked in discount rate was years and years as of December 31, 2023 and 2022.
 % %Upper-medium grade fixed income instrument discount rate  
For the years ended December 31, 2023 and 2022, immediate charges to net income resulting from adverse development that caused the NPR to exceed 100% for certain cohorts were $ million and $ million. For the years ended December 31, 2023 and 2022, the portion of losses recognized in a prior period due to NPR exceeding 100% for certain cohorts which, due to favorable development, was reversed through net income was $ million and $ million.














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Note G.
billion, which will be paid over the lifetime of the annuitants. The Company does not believe any payment is likely under these guarantees, as the Company is the beneficiary of a trust that must be maintained at a level that approximates the discounted reserves for these annuities.
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Note H.
 $ Reinsurance receivables related to paid losses  Reinsurance receivables  Allowance for uncollectible reinsurance()()Reinsurance receivables, net of allowance for uncollectible reinsurance$ $ 
The Company has established an allowance for uncollectible voluntary reinsurance receivables which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future.
 B- to B++ Insolvent 
Total voluntary reinsurance outstanding balance (1)
$ 
(1)    Expected credit losses for legacy A&EP receivables are ceded to NICO and the reinsurance limit on the LPT has not been exhausted, therefore no allowance is recorded for these receivables and they are excluded from the table above. Refer to Note E to the Consolidated Financial Statements for information regarding the LPT. The Company has also excluded receivables from involuntary pools.
The Company attempts to mitigate its credit risk related to reinsurance by entering into reinsurance arrangements with reinsurers that have credit ratings above certain levels and by obtaining collateral. On a limited basis, the Company may enter into reinsurance agreements with reinsurers that are not rated, primarily captive reinsurers. Receivables from captive reinsurers are backed by collateral arrangements and comprise the majority of the voluntary reinsurance receivables within the B- to B++ rating distribution in the table above. The primary methods of obtaining collateral are through reinsurance trusts, letters of credit and funds withheld balances. Such collateral, limited by the balance of open recoverables, was approximately $ billion and $ billion as of December 31, 2023 and 2022.
The Company's largest recoverables from a single reinsurer as of December 31, 2023, including ceded unearned premium reserves, were approximately $ billion from subsidiaries of the Berkshire Hathaway Insurance Group, $ million from Cavello Bay Reinsurance Limited and $ million from the Swiss Reinsurance Group. These amounts are substantially collateralized or otherwise secured. The recoverable from subsidiaries of the Berkshire Hathaway Insurance Group includes amounts related to third-party reinsurance for which
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 $ $ $  %Long-term care     %Total earned premiums$ $ $ $  %2022 Earned PremiumsProperty and casualty$ $ $ $  %Long-term care     %Total earned premiums$ $ $ $  %2021 Earned PremiumsProperty and casualty$ $ $ $  %Long-term care     %Total earned premiums$ $ $ $  %
(In millions)DirectAssumedCededNetAssumed/
Net %
2023 Written Premiums
Property and casualty$ $ $ $  %
Long-term care     %
Total written premiums$ $ $ $  %
2022 Written Premiums
Property and casualty$ $ $ $  %
Long-term care     %
Total written premiums$ $ $ $  %
2021 Written Premiums
Property and casualty$ $ $ $  %
Long-term care     %
Total written premiums$ $ $ $  %
Included in the direct and ceded earned premiums for the years ended December 31, 2023, 2022 and 2021 are $ million, $ million and $ million related to property business that is 100% reinsured under a significant third-party captive program. The third-party captives that participate in this program are affiliated with the non-insurance company policyholders, therefore this program provides a means for the policyholders to self-insure this property risk. The Company receives and retains a ceding commission.
Insurance claims and policyholders' benefits reported on the Consolidated Statements of Operations are net of estimated reinsurance recoveries of $ million, $ million and $ million for the years ended December 31, 2023, 2022 and 2021, including $ million, $ million and $ million, respectively, related to the significant third-party captive program discussed above.
Long-term care premiums are from long-duration contracts; property and casualty premiums are from short-duration contracts.
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Note I.
%, face amount of $, due November 15, 2023$ $ Senior notes of CNAF:
%, face amount of $, due May 15, 2024
  Total short-term debt  Long-term debt:Senior notes of CNAF:
%, face amount of $, due May 15, 2024
  
%, face amount of $, due March 1, 2026
  
%, face amount of $, due August 15, 2027
  
%, face amount of $, due May 1, 2029
  
%, face amount of $, due August 15, 2030
  
%, face amount of $, due June 15, 2033
  Total long-term debt  Total debt$ $ 
CCC is a member of the Federal Home Loan Bank of Chicago (FHLBC). FHLBC membership provides participants with access to additional sources of liquidity through various programs and services. As a requirement of membership in the FHLBC, CCC held $ million of FHLBC stock as of December 31, 2023 giving it immediate access to approximately $ million of additional liquidity. As of December 31, 2023 and 2022, CCC had outstanding borrowings from the FHLBC.
During 2023, the Company amended and restated its existing credit agreement with a syndicate of banks. The agreement provides a $ million senior unsecured revolving credit facility which is intended to be used for general corporate purposes. At the Company's election, the commitments under the agreement may be increased from time to time up to an additional aggregate amount of $ million, and extensions are available prior to any anniversary of the closing date, each subject to applicable consents. Under the agreement, the Company is required to pay a facility fee which would adjust in the event of a change in the Company's ratio of consolidated indebtedness to consolidated total capitalization, calculated in accordance with the agreement. The agreement includes several covenants, including maintenance of a minimum consolidated net worth and a specified ratio of consolidated indebtedness to consolidated total capitalization. The minimum consolidated net worth, as defined, at December 31, 2023, was $ billion.  The calculation of minimum consolidated net worth excludes AOCI. As of December 31, 2023 and 2022, the Company had outstanding borrowings under the credit agreement.
The Company's debt obligations contain customary covenants for investment grade issuers. The Company was in compliance with all covenants as of and for the years ended December 31, 2023 and 2022.
 2025 2026 2027 2028 Thereafter Less: discount()Total$ 
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Note J.
 million to settle its obligation to certain retirees through the purchase of a group annuity contract from a third party insurance company (group annuity purchase). The group annuity purchase reduced the plan's projected benefit obligation by $ million.
CNA provides certain postretirement health care benefits to eligible retired employees, their covered dependents and their beneficiaries primarily through the CNA Health and Group Benefits Program. These postretirement benefits have largely been eliminated for active employees.
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 $ $ $ Changes in benefit obligation:Interest cost    Participants' contributions    Actuarial (gain) loss ()  Benefits paid()()()()Foreign currency translation and other ()  Settlement through group annuity purchase()   Benefit obligation as of December 31    Fair value of plan assets as of January 1    Change in plan assets:Actual return on plan assets ()  Company contributions    Participants' contributions    Benefits paid()()()()Foreign currency translation and other ()  Settlement through group annuity purchase()   Fair value of plan assets as of December 31    Funded status$ $ $()$()Amounts recognized on the Consolidated Balance Sheets as of December 31:Other assets$ $ $ $ Other liabilities()()()()Net amount recognized$ $ $()$()Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit):Net actuarial (gain) loss$ $ $ $ Net amount recognized$ $ $ $ 
The accumulated benefit obligation for all defined benefit pension plans was $ million and $ million as of December 31, 2023 and 2022. Changes for the years ended December 31, 2023 and 2022 include an actuarial loss of $ million and a gain of $ million primarily driven by changes in the discount rate used to determine the defined benefit pension obligations.
For pension plans with a benefit obligation in excess of plan assets, the benefit obligation was $ million and $ million and the aggregate plan assets were $ at December 31, 2023 and 2022.
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 $ $ Expected return on plan assets()()()Amortization of net actuarial loss (gain)    Settlement loss   Total net periodic pension cost (benefit)$ $()$()
The following table indicates the line items in which the non-service cost (benefit) is presented in the Consolidated Statements of Operations.
Years ended December 31
(In millions)202320222021
Non-Service Cost (benefit):
Insurance claims and policyholder's benefits$ $()$()
Other operating expenses ()()
Total net periodic pension cost (benefit)$ $()$()
 $()$ Settlement   Reclassification adjustment relating to prior service credit   Reclassification adjustment relating to actuarial loss   Total increase (decrease) in Other comprehensive income$ $ $ 
    
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 % %Interest crediting rate  Postretirement benefitsDiscount rate % %
Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine net cost or benefit are presented in the following table.
Years ended December 31202320222021
Pension benefits
Discount rate % % %
Expected long-term rate of return   
Interest crediting rate   
Postretirement benefits
Discount rate % % %
To determine the discount rate assumption as of the year-end measurement date for the CNA Retirement Plan and CNA Health and Group Benefits Program, the Company considered the estimated timing of plan benefit payments and available yields on high quality fixed income debt securities. For this purpose, high quality is considered a rating of Aa or better by Moody's Investors Service, Inc. (Moody's) or a rating of AA or better from Standard & Poor's (S&P). The Company reviewed several yield curves constructed using the cash flow characteristics of the plans as well as bond indices as of the measurement date. The trend of those data points was also considered.
In determining the expected long-term rate of return on plan assets assumption for the CNA Retirement Plan, CNA considered the historical performance of the benefit plan investment portfolio as well as long-term market return expectations based on the investment mix of the portfolio and the expected investment horizon.
The CNA Health and Group Benefits Program has limited its share of the health care trend rate to a cost-of-living adjustment of % per year. For all participants, the employer subsidy on health care costs will not increase by more than % per year. As a result, the assumed health care cost trend rate used in measuring the accumulated postretirement benefit obligation for the CNA Health and Group Benefits Program was % per year in 2023, 2022 and 2021.
CNA employs a total return approach whereby a mix of equity, limited partnerships and fixed maturity securities are used to maximize the long-term return of retirement plan assets for a prudent level of risk and to manage cash flows according to plan requirements. The target allocation of plan assets is % to % invested in equity securities and limited partnerships, with the remainder primarily invested in fixed maturity securities. Alternative investments, including limited partnerships, are used to enhance risk adjusted long-term returns while improving portfolio diversification. The intent of this strategy is to minimize the Company's expense related to funding the plan by generating investment returns that exceed the growth of the plan liabilities over the long run. Risk tolerance is established after careful consideration of the plan liabilities, plan funded status and corporate financial conditions.
As of December 31, 2023, the Plan had committed approximately $ million to future capital calls from various third-party limited partnership investments in exchange for an ownership interest in the related partnerships. Derivatives may be used to gain market exposure in an efficient and timely manner. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies and quarterly investment portfolio reviews.
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 $ $ $ States, municipalities and political subdivisions    Asset-backed    Total fixed maturity securities    Equity securities    Short-term investments    Other assets    Total assets measured at fair value$ $ $  
Total equity securities measured at net asset value(1)
 
Total limited partnerships measured at net asset value (1)
 Total$ 
December 31, 2022
(In millions)Level 1Level 2Level 3Total
Assets
Fixed maturity securities:
Corporate bonds and other$ $ $ $ 
States, municipalities and political subdivisions    
Asset-backed    
Total fixed maturity securities    
Equity securities    
Short-term investments    
Other assets    
Total assets measured at fair value$ $ $  
Total equity securities measured at net asset value (1)
 
Total limited partnerships measured at net asset value (1)
 
Total$ 
(1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Plan's Statement of Financial Position.
The limited partnership investments held within the plan are recorded at fair value, which represents the plan's share of net asset value of each partnership, as determined by each limited partnership's general partner. Limited partnerships comprising % and % of the carrying value as of December 31, 2022 and 2021 were invested in private debt and equity. Limited partnerships comprising % and % of the carrying value as of December 31, 2023 and 2022 employ hedge fund strategies. Private debt and equity funds cover a broad range of investment strategies including buyout, private credit, growth capital and distressed investing. Hedge fund strategies include both long and short positions in fixed income, equity and derivative investments.
For a discussion of the fair value levels and the valuation methodologies used to measure fixed maturity securities, equities, derivatives and short-term investments, see Note C to the Consolidated Financial Statements.
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 $ 2025  2026  2027  2028  2029-2033  
In 2024, CNA expects to contribute $ million to its pension plans and $ million to its postretirement health care benefit plans.
Savings Plans
CNA sponsors savings plans, which are generally contributory plans that allow eligible employees to contribute a maximum of % of their eligible compensation, subject to certain limitations prescribed by the IRS. The Company contributes matching amounts to participants amounting to % of the first % of annual eligible compensation contributed by the employee. In addition, eligible employees also receive a Company contribution of % of their annual eligible compensation, referred to as a basic contribution. Company contributions vest ratably over participants first of service.
Benefit expense for the Company's savings plans was $ million, $ million and $ million for the years ended December 31, 2023, 2022 and 2021.
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Note K.
million shares of CNAF common stock. The Plan provides for awards of stock options, stock appreciation rights (SARs), restricted shares, restricted stock units (RSUs), performance-based RSUs and performance share units. Grants to employees are not designed to be spring-loaded. The number of remaining shares available for the granting of stock-based compensation under the Plan as of December 31, 2023 was approximately million.
Substantially all of the Company's stock-based compensation is awarded under the Annual Performance Share Plan (PSP). The PSP provides officers with an opportunity to earn an award based upon attainment of specific performance goals achieved over a performance period. Awards are granted in the form of performance share units at the beginning of each performance year and are generally subject to a cliff vesting period after the Company’s annual performance has been determined. The performance share units become payable within a range of % to % of the number of performance share units initially granted.
Additionally, the Company may grant RSUs under the Plan in certain circumstances. These awards generally vest over a one to service period following the grant date.
Stock-based compensation that is not fully vested prior to termination is generally forfeited upon termination, except in cases of retirement, death or disability, and as otherwise provided by contractual obligations. The fair value of stock-based compensation awards is based on the market value of the Company's common stock as of the date of grant, except for awards made to foreign participants, which is based on the current market value of the Company’s common stock. Payments made under the PSP are made entirely in shares of common stock granted under the Plan, except for awards made to foreign participants, which are paid in cash.
The Company recorded stock-based compensation expense related to the Plan of $ million, $ million and $ million for the years ended December 31, 2023, 2022 and 2021. The related income tax benefit recognized was $ million, $ million and $ million for the years ended December 31, 2023, 2022 and 2021. The compensation cost not yet recognized was $ million, and the weighted average period over which it is expected to be recognized is years as of December 31, 2023.
The total fair value of RSUs and performance share units that vested during the years ended December 31, 2023, 2022 and 2021 was $ million, $ million and $ million, respectively.
The weighted average grant date fair value for RSUs and performance share units granted during the years ended December 31, 2023, 2022 and 2021 was $, $ and $, respectively.
 $ Awards granted  Awards vested() Awards forfeited, canceled or expired() Performance-based adjustment  Balance as of December 31, 2023  
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Note L.
years$ $ $ $ Indefinite-lived intangible assets:Syndicate capacity  Agency force  Insurance licenses  Total indefinite-lived intangible assets  Total other intangible assets$ $ $ $ 

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Note M.
million, $ million and $ million for the years ended December 31, 2023, 2022 and 2021. Total lease expense includes operating lease expense of $ million, $ million and $ million and variable lease expense of $ million, $ million and $ million for the years ended December 31, 2023, 2022 and 2021. Cash paid for amounts included in operating lease liabilities was $ million, $ million and $ million for the years ended December 31, 2023, 2022 and 2021. Operating lease ROU assets obtained in exchange for lease obligations was $ million, $ million and $ million for the years ended December 31, 2023, 2022 and 2021.
In the fourth quarter of 2023, the Company committed to consolidate some of its offices, which resulted in a $ million charge within Other operating expense on the Consolidated Statement of Operations, recorded in the Corporate & Other Segment. The charge primarily relates to the abandonment of certain fixed assets and operating lease ROU assets that are no longer in use.
 $ Operating lease liabilities   2025 20262027 2028Thereafter Total lease payments Less: Discount()Total operating lease liabilities$ 
As of December 31, 2023, the Company had $ million of additional operating lease commitments that have not yet commenced. These leases will commence in 2024 with lease terms ranging from to years.
years yearsWeighted average discount rate % %


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Note N.
 million and $ million at December 31, 2023 and 2022.
The payment of dividends by CNAF's insurance subsidiaries without prior approval of the insurance department of each subsidiary’s domiciliary jurisdiction is generally limited by formula. Dividends in excess of these amounts are subject to prior approval by the respective insurance regulator.
Dividends from CCC are subject to the insurance holding company laws of the State of Illinois, the domiciliary state of CCC. Under these laws, ordinary dividends, or dividends that do not require prior approval by the Illinois Department of Insurance (the Department), are determined based on the greater of the prior year's statutory net income or 10% of statutory surplus as of the end of the prior year, as well as the timing and amount of dividends paid in the preceding twelve months. Additionally, ordinary dividends may only be paid from earned surplus, which is calculated by removing unrealized gains from unassigned surplus. As of December 31, 2023, CCC is in a positive earned surplus position. The maximum allowable dividend CCC could pay during 2024 that would not be subject to the Department’s prior approval is $ million, less dividends paid during the preceding twelve months measured at that point in time. CCC paid dividends of $ million in 2023. The actual level of dividends paid in any year is determined after an assessment of available dividend capacity, holding company liquidity and cash needs as well as the impact the dividends will have on the statutory surplus of the applicable insurance company.
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 $ $ $ $ 
(1) Information derived from the statutory-basis financial statements to be filed with insurance regulators.
CNAF’s domestic insurance subsidiaries are subject to risk-based capital (RBC) requirements. RBC is a method developed by the NAIC to determine the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations in consideration of its size and risk profile. The formula for determining the amount of RBC specifies various factors, weighted based on the perceived degree of risk, which are applied to certain financial balances and financial activity. The adequacy of a company's actual capital is evaluated by a comparison to the RBC results, as determined by the formula. Companies below minimum RBC requirements are classified within certain levels, each of which requires specified corrective action.
The statutory capital and surplus presented above for CCC was approximately % and % of company action level RBC as of December 31, 2023 and 2022. Company action level RBC is the level of RBC which triggers a heightened level of regulatory supervision. The statutory capital and surplus of the Company's foreign insurance subsidiaries, which is not significant to the overall statutory capital and surplus, also met or exceeded their respective regulatory and other capital requirements.
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Note O.
)$()$()$ $()$()
Cumulative effect adjustment from accounting change for adoption of ASU 2018-12(1) net of tax (expense) benefit of $, $, $, $, $ and $
   () ()Balance as of January 1, 2023()()()()()()Other comprehensive income (loss) before reclassifications()  ()  
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $, $, $, $—, $ and $
()()()  ()
Other comprehensive income (loss) net of tax (expense) benefit of $, $(), $(), $, $ and $()
()  ()  Balance as of December 31, 2023$()$()$()$()$()$()
(In millions)Net unrealized gains (losses) on investments with an allowance for credit losses
Net unrealized gains (losses) on other investments(1)
Pension and postretirement benefits
Cumulative impact of changes in discount rates used to measure long duration contracts(1)
Cumulative foreign currency translation adjustmentTotal
Balance as of January 1, 2022, as previously reported$()$ $()$ $()$ 
Cumulative effect adjustment from accounting change for adoption of ASU 2018-12(1) net of tax (expense) benefit of $, $(), $, $, $ and $
   () ()
Balance as of January 1, 2022, as adjusted() ()()()()
Other comprehensive income (loss) before reclassifications ()() ()()
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $(), $, $, $—, $ and $
 ()()  ()
Other comprehensive income (loss) net of tax (expense) benefit of $, $, $(), $(), $ and $
()()  ()()
Balance as of December 31, 2022$()$()$()$()$()$()

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 $ $()$ $()$ 
Cumulative effect adjustment from accounting change for adoption of ASU 2018-12(1) net of tax (expense) benefit of $, $(), $, $, $ and $
   () ()Balance as of January 1, 2021, as adjusted  ()()()()Other comprehensive income (loss) before reclassifications()()  () 
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $, $(), $, $, $ and $()
() ()   
Other comprehensive income (loss) net of tax (expense) benefit of $, $, $(), $(), $ and $()
()()  () Balance as of December 31, 2021$()$ $()$()$()$()
1) See Note A to the Consolidated Financial Statements for additional information.
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Note P.
business segments: Specialty, Commercial and International. These segments are collectively referred to 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. 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. 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, the Company's Lloyd's syndicate.
The Company's operations outside of Property & Casualty Operations are managed and reported in segments: Life & Group and Corporate & Other. Life & Group primarily includes the results of the 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 business in run-off, including CNA Re, A&EP, a legacy portfolio of EWC policies and certain legacy mass tort reserves.
The accounting policies of the segments are the same as those described in Note A to the Consolidated Financial Statements. The Company manages most of its assets on a legal entity basis, while segment operations are generally conducted across legal entities. As such, only Insurance and Reinsurance receivables, Insurance reserves, Deferred acquisition costs, Goodwill and Deferred non-insurance warranty acquisition expense and revenue are readily identifiable for individual segments. Distinct investment portfolios are not maintained for every individual segment; accordingly, allocation of assets to each segment is not performed. Therefore, a significant portion of Net investment income and Net investment gains or losses are allocated primarily based on each segment's net carried insurance reserves, as adjusted. All significant intersegment income and expense have been eliminated. Income taxes have been allocated on the basis of the taxable income of the segments.
Approximately %, % and % of the Company's direct written premiums were derived from outside the United States for the years ended December 31, 2023, 2022 and 2021.
In the following tables, certain financial measures are presented to provide information used by management to monitor the Company's operating performance. Management utilizes these financial measures to monitor the Company's insurance operations and investment portfolio.
The performance of the Company's insurance operations is monitored by management through core income (loss), which is derived from certain income statement amounts. The Company's investment portfolio is monitored by management through analysis of various factors including unrealized gains and losses on securities, portfolio duration and exposure to market and credit risk.
Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses. The calculation of core income (loss) excludes net investment gains or losses because net investment gains or losses are generally driven by economic factors that are not necessarily reflective of our primary operations.
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 $ $ $ $ $()$ Operating revenues Net earned premiums$ $ $ $ $ $()$ Net investment income       Non-insurance warranty revenue       Other revenues   () () Total operating revenues     () Claims, benefits and expenses      Net incurred claims and benefits       Policyholders’ dividends       Amortization of deferred acquisition costs       Non-insurance warranty expense       Other insurance related expenses     () Other expenses  ()  () Total claims, benefits and expenses     () Core income (loss) before income tax   ()()  Income tax (expense) benefit on core income (loss)()()()   ()Core income (loss) $ $ $ $()$()$  Net investment gains (losses)()Income tax (expense) benefit on net investment gains (losses) Net investment gains (losses), after tax()Net income (loss)$ 
December 31, 2023
(In millions)      
Reinsurance receivables$ $ $ $ $ $ $ 
Insurance receivables       
Deferred acquisition costs       
Goodwill       
Deferred non-insurance warranty acquisition expense       
Insurance reserves 
Claim and claim adjustment expenses       
Unearned premiums       
Future policy benefits       
Deferred non-insurance warranty revenue       
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 $ $ $ $()$()$ Operating revenues Net earned premiums$ $ $ $ $()$()$ Net investment income       Non-insurance warranty revenue       Other revenues   () () Total operating revenues     () Claims, benefits and expenses    Net incurred claims and benefits       Policyholders’ dividends       Amortization of deferred acquisition costs       Non-insurance warranty expense       Other insurance related expenses     () Other expenses     () Total claims, benefits and expenses     () Core income (loss) before income tax   ()()  Income tax (expense) benefit on core income (loss)()()()   ()Core income (loss)$ $ $ $()$()$  Net investment gains (losses)()Income tax (expense) benefit on net investment gains (losses) Net investment gains (losses), after tax()Net income (loss)$ 
December 31, 2022
(In millions)
Reinsurance receivables$ $ $ $ $ $ $ 
Insurance receivables       
Deferred acquisition costs       
Goodwill       
Deferred non-insurance warranty acquisition expense       
Insurance reserves 
Claim and claim adjustment expenses       
Unearned premiums       
Future policy benefits       
Deferred non-insurance warranty revenue       
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
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 $ $ $ $ $()$ Operating revenues Net earned premiums$ $ $ $ $ $()$ Net investment income       Non-insurance warranty revenue       Other revenues     () Total operating revenues     () Claims, benefits and expenses     Net incurred claims and benefits       Policyholders’ dividends       Amortization of deferred acquisition costs       Non-insurance warranty expense       Other insurance related expenses     () Other expenses  ()  () Total claims, benefits and expenses     () Core income (loss) before income tax    ()  Income tax (expense) benefit on core income (loss)()()()   ()Core income (loss)$ $ $ $ $()$  Net investment gains (losses) Income tax (expense) benefit on net investment gains (losses)()Net investment gains (losses), after tax Net income (loss)$ 
Year ended December 31, 2021
(In millions)
Reinsurance receivables$ $ $ $ $ $ $ 
Insurance receivables       
Deferred acquisition costs       
Goodwill       
Deferred non-insurance warranty acquisition expense       
Insurance reserves 
Claim and claim adjustment expenses       
Unearned premiums       
Future policy benefits       
Deferred non-insurance warranty revenue       
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
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 $ $ Surety   Warranty & Alternative Risks   Specialty revenues   CommercialMiddle Market   Construction   Small Business   Other Commercial   Commercial revenues   InternationalCanada   Europe   Hardy   International revenues   Life & Group revenues   Corporate & Other revenues    Eliminations()()()Total operating revenues   Net investment gains (losses)()() Total revenues$ $ $ 
































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Note Q.
 $ $ $ $ Effect of adoption()()()()()As reported$ $ $ $ $ Net income (loss)Prior to adoption$ $ $ $ $ Effect of adoption()()()()()As reported$ $ $()$ $ Other comprehensive income (loss), net of taxPrior to adoption$()$()$()$ $()Effect of adoption   () As reported$()$()$()$ $()Diluted Earnings (Loss) Per Common ShareCore income (loss)Prior to adoption$ $ $ $ Effect of adoption()()()()As reported$ $ $ $ Net income (loss)Prior to adoption$ $ $ $ Effect of adoption()()()()As reported$ $ $()$ 
As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
Core income (loss) and Net income (loss) for 2022 decreased from what was previously reported under legacy accounting guidance generally driven by the cumulative effect of assumption differences and differences in reserving methodologies between legacy and new accounting guidance.
Core income (loss) and Net income (loss) for the third quarter of 2022 decreased $ million from what was previously reported under legacy accounting guidance, primarily related to the third quarter 2022 annual review of cash flow reserving assumptions. Under legacy accounting guidance, the third quarter 2022 gross premium valuation assessment indicated a pretax margin of $ million and no unlocking event occurred. Under the new guidance favorable changes to the upper-medium grade fixed income instrument discount rate were recorded through Accumulated other comprehensive income quarterly, while the net unfavorable impact of increased cost of care inflation offset by favorable premium rate action assumptions was recorded in income.


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Note R.
million, $ million and $ million for the years ended December 31, 2023, 2022 and 2021. Net amounts due to Loews related to these services, included in Other liabilities and payable in the first quarter of the subsequent year, were $ million and $ million as of December 31, 2023 and 2022. In addition, the Company reimbursed Loews for general corporate services and related travel expenses of $ million for the years ended December 31, 2023 and 2022. The CNA Tax Group is included in the consolidated federal income tax return of Loews and its eligible subsidiaries. The related receivable from Loews, included in Other assets, was $ million and $ million for the years ended December 31, 2023 and 2022. For a detailed description of the income tax agreement with Loews see Note D to the Consolidated Financial Statements. In 2021, the Company wrote an appeal bond for Loews at standard rates, which was increased in 2022, resulting in additional premium from Loews. The aforementioned appeal bond expired in December 2022. In addition, the Company writes, at standard rates, a limited amount of insurance for Loews and its subsidiaries. The earned premiums for each of the years ended December 31, 2023, 2022 and 2021 were $ million, $ million, and $ million.
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Note S.
billion reported in Deferred non-insurance warranty revenue as of December 31, 2023 and 2022. For the year ended December 31, 2023, the Company recognized $ billion of revenues that were included in the deferred revenue balance as of January 1, 2023. For the year ended December 31, 2022, the Company recognized $ billion of revenues that were included in the deferred revenue balance as of January 1, 2022. For the years ended December 31, 2023 and 2022, Non-insurance warranty revenue recognized from performance obligations related to prior periods due to a change in estimate was not material. The Company expects to recognize approximately $ billion of the deferred revenue in 2024, $ billion in 2025, $ billion in 2026 and $ billion thereafter.
Cost to Obtain and Fulfill Non-Insurance Warranty Contracts with Customers
For each of the years ended December 31, 2023 and 2022, capitalized commission costs were $ billion and capitalized administrator service costs were $ million and $ million. For each the years ended December 31, 2023 and 2022, the amount of amortization of capitalized costs was $ billion and there were no impairment losses related to the costs capitalized. There were no adjustments to deferred costs recorded for the years ended December 31, 2023 and 2022.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of
CNA Financial Corporation
Chicago, Illinois
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of CNA Financial Corporation (an affiliate of Loews Corporation) and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of operations, comprehensive income (loss), cash flows, and stockholders' equity, for each of the three years in the period ended December 31, 2023, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). We also have audited the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
Change in Accounting Principle
As discussed in Note A to the financial statements, the Company has changed its method of accounting for measurement and disclosure of long-duration contracts effective January 1, 2023, using the modified retrospective method applied as of the transition date of January 1, 2021, due to adoption of ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting For Long-Duration Contracts.
Basis for Opinions
The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on these financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
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Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Claim and claim adjustment expense reserves - Property & Casualty - Refer to Notes A and E to the financial statements.
Critical Audit Matter Description
The estimation of property and casualty claim and claim adjustment expense reserves (“P&C claim and claim adjustment expense reserves”), including those claims that are incurred but not reported, requires significant judgment. Estimating P&C claim and claim adjustment expense reserves is subject to a high degree of variability as it involves complex estimates that are generally derived using a variety of actuarial estimation techniques and numerous assumptions and expectations about future events, many of which are highly uncertain. Modest changes in judgments and assumptions can materially impact the valuation of these liabilities, particularly for claims with longer-tailed exposures such as workers’ compensation, general liability and professional liability claims and certain shorter-tailed exposures, such as surety.
Given the significant judgments made by management in estimating P&C claim and claim adjustment expense reserves, auditing P&C claim and claim adjustment expense reserves required a high degree of auditor judgment and an increased extent of effort, including the involvement of our actuarial specialists.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to P&C claim and claim adjustment expense reserves included the following, among others:
•We tested the effectiveness of controls related to the determination of P&C claim and claim adjustment expense reserves, including those controls related to the estimation of and management’s review of P&C claim and claim adjustment expense reserves.
•We tested the underlying data, including historical claims, that served as the basis for the actuarial analyses, to test that the inputs to the actuarial estimates were accurate and complete.
•With the assistance of our actuarial specialists:
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◦We developed a range of independent estimates of P&C claim and claim adjustment expense reserves and compared the recorded reserves to our range of estimates.
◦We performed a retrospective review which involved comparing our prior year estimates of expected incurred losses to actual experience during the most recent year to identify potential bias in the Company’s determination of P&C claim and claim adjustment expense reserves.
Future policy benefit reserves - Long-Term Care - Refer to Notes A and F to the financial statements.
Critical Audit Matter Description
The estimation of long-term care future policy benefit reserves (“LTC future policy benefit reserves”) requires significant judgment in the selection of key assumptions, including morbidity and persistency (inclusive of mortality). Estimating future experience for long term care policies is subject to significant estimation risk as the required projection period spans several decades. Morbidity and persistency experience can be volatile and modest changes in each of these assumptions can materially impact the valuation of these liabilities.
Given the significant judgments made by management in estimating LTC future policy benefit reserves, auditing LTC future policy benefit reserves required a high degree of auditor judgment and an increased extent of effort, including the involvement of our actuarial specialists.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to LTC future policy benefit reserves included the following, among others:
•We tested the effectiveness of controls related to the determination of LTC future policy benefit reserves, including those controls related to the estimation of and management’s review of LTC future policy benefit reserves and determination of key assumptions.
•We tested the underlying data, including demographic and historical claims data, that served as the basis for the actuarial analyses, to test that the inputs to the actuarial estimates were accurate and complete.
•With the assistance of our actuarial specialists:
◦We independently recalculated cohort level LTC future policy benefit reserves and compared our estimates to the recorded reserves.
◦We evaluated the judgments made by management in setting assumptions, including comparing those assumptions to the Company’s historical experience used as the basis for setting those assumptions.
◦For a sample of policies, we evaluated management’s estimate of future cash flows. This included confirming that assumptions were applied as intended.
/s/
February 6, 2024
We have served as the Company's auditor since 1976.
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MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
The management of CNA Financial Corporation (CNAF or the Company) is responsible for establishing and maintaining adequate internal control over financial reporting. CNAF's internal control system was designed to provide reasonable assurance to the Company's management, its Audit Committee and Board of Directors regarding the preparation and fair presentation of published financial statements.
There are inherent limitations to the effectiveness of any internal control or system of control, however well designed, including the possibility of human error and the possible circumvention or overriding of such controls or systems. Moreover, because of changing conditions the reliability of internal controls may vary over time. As a result even effective internal controls can provide no more than reasonable assurance with respect to the accuracy and completeness of financial statements and their process of preparation.
CNAF management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2023. In making this assessment, it has used the criteria set forth by the 2013 Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework. Based on those criteria and our assessment we believe that, as of December 31, 2023, the Company's internal control over financial reporting was effective.
CNAF's independent registered public accountant, Deloitte & Touche LLP, has issued an audit report on the Company's internal control over financial reporting. This report appears on page 145.

CNA Financial Corporation
Chicago, Illinois
February 6, 2024
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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
As of December 31, 2023, the Company's management, including the Company's Chief Executive Officer (CEO) and Chief Financial Officer (CFO), conducted an evaluation of the effectiveness of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on this evaluation, the CEO and CFO have concluded that the Company's disclosure controls and procedures are effective.
Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002, and the implementing rules of the Securities and Exchange Commission, the Company included a report of management's assessment of the design and effectiveness of its internal controls as part of this Annual Report on Form 10-K for the year ended December 31, 2023. Management's report and the independent registered public accounting firm's attestation report are included in Part II, Item 8 under the captions entitled “Management's Report on Internal Control Over Financial Reporting” and “Report of Independent Registered Public Accounting Firm” and are incorporated herein by reference.
There has been no change in the Company’s internal control over financial reporting (as defined in Rules 13a-15 (f) and 15d-15(f) under the Exchange Act) during the quarter ended December 31, 2023 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
ITEM 9B. OTHER INFORMATION
None.
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
None.
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PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Information about our Executive Officers
NAMEPOSITION AND OFFICES HELD WITH REGISTRANTAGEFIRST BECAME EXECUTIVE OFFICER OF CNAPRINCIPAL OCCUPATION DURING PAST FIVE YEARS
Dino E. RobustoChief Executive Officer652016Chairman of the Board and Chief Executive Officer of CNA Financial Corporation since November 2016.
Scott R. LindquistExecutive Vice President & Chief Financial Officer602022Executive Vice President & Chief Financial Officer of CNA Financial Corporation since February 2022. Executive Vice President of CNA Financial Corporation from January 2022 to February 2022. Retired from September 2021 to January 2022. Senior Advisor to the Chief Executive Officer of Farmers Group, Inc. from April 2021 through September 2021. Chief Financial Officer of Farmers Group, Inc. from February 2008 through April 2021.
Elizabeth A. AguinagaExecutive Vice President & Chief Human Resources Officer462018Executive Vice President & Chief Human Resources Officer of the CNA Insurance Companies since February 2018.
Nick CreaturaPresident & Chief Executive Officer, Canada602020
President & Chief Executive Officer, Canada of the CNA Insurance Companies since May 2017.
Daniel P. FranzettiExecutive Vice President & Chief Administrative Officer572020Executive Vice President & Chief Administrative Officer of the CNA Insurance Companies since June 2023. Executive Vice President, Worldwide Claims of the CNA Insurance Companies from April 2020 to June 2023. Chief Operating Officer, QBE North America from January 2018 through April 2020.
Robert J. HopperExecutive Vice President & Chief Actuary572020Executive Vice President & Chief Actuary of the CNA Insurance Companies since August 2020. Executive Vice President, Actuary of the CNA Insurance Companies from February 2020 through August 2020. Senior Vice President and Actuary for Chubb Commercial Insurance from 2005 through February 2020.
Mark JamesExecutive Vice President, Chief Risk & Reinsurance Officer592022Executive Vice President, Chief Risk & Reinsurance Officer of the CNA Insurance Companies since July 2022. Senior Vice President, Global Chief Risk and Reinsurance Officer of the CNA Insurance Companies from October 2019 through July 2022. Senior Vice President, Global Reinsurance and Risk Management of the CNA Insurance Companies from April 2018 through October 2019.
Jane PossellExecutive Vice President & Chief Information Officer, Analytics, Operations512023Executive Vice President & Chief Information Officer, Analytics, Operations of the CNA Insurance Companies since January 2023. Senior Vice President & Chief Information Officer of the CNA Insurance Companies from September 2019 to January 2023. Senior Director, Technology/ Manager Systems and Operations - Digital and Business Insurance for Liberty Mutual Insurance from March 2019 to August 2019. Senior Director, Technology/Manager Systems and Operations for Liberty Mutual Insurance from March 2017 to March 2019.
Jalil RehmanPresident & Chief Executive Officer, U.K. & Europe592020
President & Chief Executive Officer, U.K. & Europe of the CNA Insurance Companies since September 2020. Senior Vice President and Chief Operating Officer, U.K. & Europe of the CNA Insurance Companies from October 2018 to September 2020.


150

NAMEPOSITION AND OFFICES HELD WITH REGISTRANTAGEFIRST BECAME EXECUTIVE OFFICER OF CNAPRINCIPAL OCCUPATION DURING PAST FIVE YEARS
Susan A. StoneExecutive Vice President & General Counsel622021Executive Vice President & General Counsel of CNA Financial Corporation since June 2021. General Counsel, Marsh LLC, from February 2017 through May 2021.
Douglas M. WormanExecutive Vice President & Global Head of Underwriting562017Executive Vice President & Global Head of Underwriting of the CNA Insurance Companies since March 2017.

Officers are elected annually and hold office until their successors are elected and qualified, and are subject to removal by the Board of Directors.
Additional information required in Part III, Item 10 has been omitted as we intend to include such information in our definitive proxy statement which will be filed with the Securities and Exchange Commission not later than 120 days after December 31, 2023.
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ITEM 11. EXECUTIVE COMPENSATION
Information required in Part III, Item 11 has been omitted as we intend to include such information in our definitive proxy statement which will be filed with the Securities and Exchange Commission not later than 120 days after December 31, 2023.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
Equity Compensation Plan
The table below presents the securities authorized for issuance under equity compensation plans. Performance share units are included at the maximum potential payout percentage.
December 31, 2023Number of securities to be issued upon exercise of outstanding options, warrants and rightsWeighted average exercise price of outstanding options, warrants and rightsNumber of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
Plan Category(a)(b)(c)
Equity compensation plans approved by security holders3,674,349 $40.67 3,586,741 
Equity compensation plans not approved by security holders— — — 
Total3,674,349 $40.67 3,586,741 
Additional information required in Part III, Item 12 has been omitted as we intend to include such information in our definitive proxy statement which will be filed with the Securities and Exchange Commission not later than 120 days after December 31, 2023.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
Information required in Part III, Item 13 has been omitted as we intend to include such information in our definitive proxy statement which will be filed with the Securities and Exchange Commission not later than 120 days after December 31, 2023.
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Information required in Part III, Item 14 about aggregate fees billed to us by our principal accountant, Deloitte & Touche LLP (PCAOB ID No. ) has been omitted as we intend to include such information in our definitive proxy statement which will be filed with the Securities and Exchange Commission not later than 120 days after December 31, 2023.
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PART IV
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
(1)    FINANCIAL STATEMENTS:
Page Number
60
61
62
63
64
65
145
148
(2)    FINANCIAL STATEMENT SCHEDULES:
Schedule I
157
Schedule II
157
Schedule III
161
Schedule IV
161
Schedule V
161
Schedule VI
162
(3)    EXHIBITS:
Description of ExhibitExhibit Number
(3)Articles of incorporation and by-laws:
3.1 
3.1.1
Certificate of Amendment of Certificate of Incorporation, dated May 10, 1999 (Exhibit 3.1 to 1999 Form 10-K incorporated herein by reference)3.1.2P
3.2 
(4)Instruments defining the rights of security holders, including indentures:*
4.1 
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4.2 
(10)Material contracts:
Second Amended and Restated Credit Agreement dated December 6, 2023 among the registrant, Wells Fargo Bank, National Association, J.P. Morgan Chase Bank, N.A., Associated Bank, National Association, Bank of America, N.A., Barclays Bank PLC, Citibank, N.A., The Northern Trust Company, and U.S. Bank National Association. 10.1 
Federal Income Tax Allocation Agreement, dated February 29, 1980 between CNA Financial Corporation and Loews Corporation (Exhibit 10.2 to 1987 Form 10-K incorporated herein by reference)10.2 P
10.3 
10.3.1
10.4
+
10.5
+
10.6
+
10.7
+
10.8
+
10.9 
+
10.10 
+
10.11 
+
10.12
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10.13
10.14
10.15
10.16
10.17
10.18
(21)Subsidiaries of the Registrant
21.1
(23)Consent of Experts and Counsel
23.1
(31)Rule 13a-14(a)/15d-14(a) Certifications
31.1
  
31.2
  
(32)Section 1350 Certifications
32.1
  
32.2
(97)Policy Relating to Recovery of Erroneously Awarded Compensation
97.1
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(101)XBRL - Interactive Data File
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document101.INS
Inline XBRL Taxonomy Extension Schema101.SCH
Inline XBRL Taxonomy Extension Calculation Linkbase101.CAL
Inline XBRL Taxonomy Extension Definition Linkbase101.DEF
Inline XBRL Taxonomy Label Linkbase101.LAB
Inline XBRL Taxonomy Extension Presentation Linkbase101.PRE
(104)Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)104.1 
* CNA Financial Corporation hereby agrees to furnish to the Commission upon request copies of instruments with respect to long-term debt, pursuant to Item 601(b)(4) (iii) of Regulation S-K.
P - Per Item 102(d) of Regulation S-T [17CFR 232.102(d)], these exhibits do not need to be hyperlinked.
+ Management contract or compensatory plan or arrangement.
Except for Exhibits 10.1, 21.1, 23.1, 31.1, 31.2, 32.1, 32.2, 97.1 and the XBRL documents as discussed in the note above, the exhibits above are not included in this report, but are on file with the SEC.
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 $ $ Total revenues   ExpensesAdministrative and general   Interest   Total expenses   Loss from operations before income taxes and equity in net income of subsidiaries()()()Income tax benefit   Loss before equity in net income of subsidiaries()()()Equity in net income of subsidiaries   Net income   Equity in other comprehensive income (loss) of subsidiaries () Total comprehensive income (loss)$ $()$ 
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
See accompanying Notes to Condensed Financial Information as well as the
Consolidated Financial Statements and accompanying Notes.
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 $ Cash  Short-term investments  Amounts due from affiliates  Other assets  Total assets$ $ LiabilitiesShort-term debt$ $ Long-term debt  Other liabilities  Total liabilities  Stockholders' Equity
Common stock ($ par value; shares authorized; shares issued; and shares outstanding)
  Additional paid-in capital  Retained earnings  Accumulated other comprehensive loss()()
Treasury stock ( and shares), at cost
()()Total stockholders' equity  Total liabilities and stockholders' equity$ $ 
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
See accompanying Notes to Condensed Financial Information as well as the
Consolidated Financial Statements and accompanying Notes.
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 $ $ Adjustments to reconcile net income to net cash flows provided by operating activities:Equity in net income of subsidiaries()()()Dividends received from subsidiaries   Other, net   Net cash flows provided by operating activities   Cash Flows from Investing ActivitiesChange in short-term investments() ()Capital contributions to subsidiaries()  Net cash flows (used) provided by investing activities() ()Cash Flows from Financing ActivitiesDividends paid to common stockholders()()()Proceeds from the issuance of debt   Repayment of debt()  Purchase of treasury stock()()()Other, net()()()Net cash flows used by financing activities()()()Net change in cash()  Cash, beginning of year   Cash, end of year$ $ $ 
(1)    As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.

See accompanying Notes to Condensed Financial Information as well as the
Consolidated Financial Statements and accompanying Notes.
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% of the outstanding common stock of CNAF as of December 31, 2023.
160
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 $ $ $ $ Insurance and reinsurance receivables$ $ $ $()$ Allowance for credit losses:
Fixed maturity securities
$ $ $ $()$ Year ended December 31, 2022Allowance for uncollectible:
Mortgage loan receivables
$ $ $ $ $ Insurance and reinsurance receivables$ $ $ $()$ Allowance for credit losses:
Fixed maturity securities
$ $ $ $()$ Year ended December 31, 2021Allowance for uncollectible:
Mortgage loan receivables
$ $ $()$ $ Insurance and reinsurance receivables$ $ $ $()$ Allowance for credit losses:
Fixed maturity securities
$ $ $ $()$ 
Effects of foreign currency translation, changes in the estimate of the allowance for uncollectible mortgage loan receivables, increases in the estimate of the allowance for credit losses on fixed maturity securities and allowances established with respect to assets purchased with credit deterioration are presented within the Charged to Other Accounts column in the table above. Write-offs of uncollectible amounts and reductions to the allowance for credit losses due to securities sold during the period or the reversal for securities that had an allowance recorded in a previous period are presented within the Deductions column in the table above.
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 $ Reserves for unpaid claim and claim adjustment expenses  
Discount deducted from claim and claim adjustment expense reserves above (based on interest rates ranging from % to %)
  Unearned premiums  Statement of Operations DataNet written premiums$ $ $ Net earned premiums   Net investment income   Incurred claim and claim adjustment expenses related to current year   Incurred claim and claim adjustment expenses related to prior years () Amortization of deferred acquisition costs   Paid claim and claim adjustment expenses   
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
CNA Financial Corporation
Dated: February 6, 2024By/s/ Dino E. Robusto
Dino E. Robusto
Chief Executive Officer
(Principal Executive Officer)
Dated: February 6, 2024By/s/ Scott R. Lindquist
Scott R. Lindquist
Chief Financial Officer
(Principal Financial Officer)
Dated: February 6, 2024By/s/ Amy M. Smith
Amy M. Smith
Chief Accounting Officer
(Principal Accounting Officer)
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.
Dated: February 6, 2024By/s/ Dino E. Robusto
(Dino E. Robusto, Chief Executive Officer and Chairman of the Board of Directors)
Dated: February 6, 2024By/s/ Michael A. Bless
(Michael A. Bless, Director)
Dated: February 6, 2024By/s/ Jose O. Montemayor
(Jose O. Montemayor, Director)
Dated: February 6, 2024By/s/ Don M. Randel
(Don M. Randel, Director)
Dated: February 6, 2024By/s/ Andre Rice
(Andre Rice, Director)
Dated: February 6, 2024By/s/ Kenneth I. Siegel
(Kenneth I. Siegel, Director)
Dated: February 6, 2024By/s/ Andrew H. Tisch
(Andrew H. Tisch, Director)
Dated: February 6, 2024By/s/ Benjamin J. Tisch
(Benjamin J. Tisch, Director)
Dated: February 6, 2024By/s/ James S. Tisch
(James S. Tisch, Director)
Dated: February 6, 2024By/s/ Jane Wang
(Jane Wang, Director)
163

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