v3.25.1
Business Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Business Segments Business Segments
The Company's property and casualty commercial insurance operations are managed and reported in three business segments: Specialty, Commercial and International. These three segments are collectively referred to as Property & Casualty Operations. The Company's operations outside of Property & Casualty Operations are managed and reported in two segments: Life & Group and Corporate & Other.
The accounting policies of the segments are the same as those described in Note A to the Consolidated Financial Statements within CNAF's Annual Report on Form 10-K for the year ended December 31, 2024. 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 is 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.
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). The Company's Chief Operating Decision Maker (CODM) is the Chief Executive Officer. For all segments, the CODM uses a multi-year trend of core income (loss) to assess the segments' operating performance and make decisions regarding the allocation of resources to each segment.
Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses and gains or losses resulting from pension settlement transactions. Net investment gains or losses are excluded from the calculation of core income (loss) because they are generally driven by economic factors that are not necessarily reflective of the Company's primary operations. The calculation of core income (loss) excludes gains or losses resulting from pension settlement transactions as they result from decisions regarding the Company's defined benefit pension plans which are unrelated to the Company's primary operations.
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.
The Company's results of operations and selected balance sheet items by segment are presented in the following tables.
Three months ended March 31, 2025
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Operating revenues 
Net earned premiums$830 $1,380 $310 $106 $— $— $2,626 
Net investment income151 177 34 226 16 — 604 
Non-insurance warranty revenue397 — — — — — 397 
Other revenues1 8 — — 3 (3)9 
Total operating revenues1,379 1,565 344 332 19 (3)3,636 
Claims, benefits and expenses      
Net incurred claims and benefits509 1,007 192 300 9 — 2,017 
Policyholders’ dividends2 8 — — — — 10 
Amortization of deferred acquisition costs189 219 63 — — — 471 
Non-insurance warranty expense385 — — — — — 385 
Insurance related administrative expenses88 163 40 30 — — 321 
Interest expense— — — — 32 — 32 
Other expenses (1)
15 10 (1)— 21 (3)42 
Total claims, benefits and expenses1,188 1,407 294 330 62 (3)3,278 
Income tax (expense) benefit on core income (loss)(41)(34)(13)4 7 — (77)
Core income (loss) $150 $124 $37 $6 $(36)$— $281 
Net investment gains (losses)(9)
Income tax (expense) benefit on net investment gains (losses)2 
Net investment gains (losses), after tax(7)
Net income (loss)$274 
(1) Other expenses for the Company's property and casualty commercial insurance segments reflects expenses not directly related to the Company's insurance operations, including certain expenses related to the Company's non-insurance warranty business within Specialty, claims services offerings within Commercial and foreign currency transaction gains and losses within International. Other expenses for the Corporate & Other segment reflects certain corporate expenses not attributable to the Company's ongoing property and casualty insurance operations.
March 31, 2025SpecialtyCommercialInternationalLife &
Group		Corporate
& Other
(In millions)EliminationsTotal
Reinsurance receivables$1,624 $1,739 $558 $81 $2,286 $— $6,288 
Insurance receivables992 2,306 429 2 — — 3,729 
Deferred acquisition costs441 423 135 — — — 999 
Goodwill117 — 29 — — — 146 
Deferred non-insurance warranty acquisition expense3,493 — — — — — 3,493 
Insurance reserves 
Claim and claim adjustment expenses7,572 11,708 3,046 616 2,639 — 25,581 
Unearned premiums3,267 3,366 760 112 — (1)7,504 
Future policy benefits— — — 13,304 — — 13,304 
Deferred non-insurance warranty revenue4,488 — — — — — 4,488 
Three months ended March 31, 2024
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Operating revenues 
Net earned premiums$814 $1,202 $315 $110 $— $— $2,441 
Net investment income150 176 31 231 21 — 609 
Non-insurance warranty revenue407 — — — — — 407 
Other revenues1 8 — — 3 (3)9 
Total operating revenues1,372 1,386 346 341 24 (3)3,466 
Claims, benefits and expenses    
Net incurred claims and benefits477 828 189 312 (8)— 1,798 
Policyholders’ dividends2 7 — — — — 9 
Amortization of deferred acquisition costs178 200 66 — — — 444 
Non-insurance warranty expense394 — — — — — 394 
Insurance related administrative expenses81 138 39 29 — — 287 
Interest expense1 — — — 34 — 35 
Other expenses (1)
14 12 2 — 25 (3)50 
Total claims, benefits and expenses1,147 1,185 296 341 51 (3)3,017 
Income tax (expense) benefit on core income (loss)(48)(43)(13)5 5 — (94)
Core income (loss)$177 $158 $37 $5 $(22)$— $355 
Net investment gains (losses)(22)
Income tax (expense) benefit on net investment gains (losses)5 
Net investment gains (losses), after tax(17)
Net income (loss)$338 
(1) Other expenses for the Company's property and casualty commercial insurance segments reflects expenses not directly related to the Company's insurance operations, including certain expenses related to the Company's non-insurance warranty business within Specialty, claims services offerings within Commercial and foreign currency transaction gains and losses within International. Other expenses for the Corporate & Other segment reflects certain corporate expenses not attributable to the Company's ongoing property and casualty insurance operations.
December 31, 2024SpecialtyCommercialInternationalLife &
Group		Corporate
& Other
(In millions)EliminationsTotal
Reinsurance receivables$1,405 $1,710 $539 $82 $2,336 $— $6,072 
Insurance receivables1,062 2,219 410 4 2 — 3,697 
Deferred acquisition costs427 405 127 — — — 959 
Goodwill117 — 28 — — — 145 
Deferred non-insurance warranty acquisition expense3,525 — — — — — 3,525 
Insurance reserves 
Claim and claim adjustment expenses7,426 11,336 2,920 622 2,672 — 24,976 
Unearned premiums3,275 3,252 727 92 — — 7,346 
Future policy benefits— — — 13,158 — — 13,158 
Deferred non-insurance warranty revenue4,530 — — — — — 4,530 
The following table presents further detail of significant segment expenses included within Net incurred claims and benefits for the Property & Casualty segments.
Three months ended March 31
(In millions)20252024
Specialty
Non-catastrophe net incurred claim and claim adjustment expenses related to current year$499 $482 
Catastrophe losses— — 
(Favorable) unfavorable development (1)
10 (5)
Commercial
Non-catastrophe net incurred claim and claim adjustment expenses related to current year$868 $746 
Catastrophe losses86 82 
(Favorable) unfavorable development (1)
51 (2)
International
Non-catastrophe net incurred claim and claim adjustment expenses related to current year$181 $183 
Catastrophe losses11 6 
(Favorable) unfavorable development (1)
— — 
(1) (Favorable) unfavorable development does not include the effects of interest accretion and change in allowance for uncollectible reinsurance.
The following table presents operating revenues by line of business for each reportable segment.
Three months ended March 31
(In millions)20252024
Specialty
Management & Professional Liability$746 $729 
Surety188 182 
Warranty & Alternative Risks445 461 
Specialty revenues1,379 1,372 
Commercial
Middle Market466 432 
Construction510 455 
Small Business156 154 
Other Commercial433 345 
Commercial revenues1,565 1,386 
International
Canada94 98 
Europe144 143 
Hardy106 105 
International revenues344 346 
Life & Group revenues332 341 
Corporate & Other revenues 19 24 
Eliminations(3)(3)
Total operating revenues3,636 3,466 
Net investment gains (losses)(9)(22)
Total revenues$3,627 $3,444