v3.25.2
Business Segments
 6 Months Ended
Jun. 30, 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 June 30, 2025
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Operating revenues 
Net earned premiums$862 $1,402 $324 $106 $— $— $2,694 
Net investment income170 206 38 235 13 — 662 
Non-insurance warranty revenue398 — — — — — 398 
Other revenues(1)10 — — 3 (3)9 
Total operating revenues1,429 1,618 362 341 16 (3)3,763 
Claims, benefits and expenses      
Net incurred claims and benefits519 940 195 313 108 — 2,075 
Policyholders’ dividends3 7 — — — — 10 
Amortization of deferred acquisition costs195 211 63 — — — 469 
Non-insurance warranty expense384 — — — — — 384 
Insurance related administrative expenses92 170 43 31 1 — 337 
Interest expense— — — — 31 — 31 
Other expenses (1)
10 15 (10)1 18 (3)31 
Total claims, benefits and expenses1,203 1,343 291 345 158 (3)3,337 
Income tax (expense) benefit on core income (loss)(49)(57)(18)5 28 — (91)
Core income (loss) $177 $218 $53 $1 $(114)$— $335 
Net investment gains (losses)(46)
Income tax (expense) benefit on net investment gains (losses)10 
Net investment gains (losses), after tax(36)
Net income (loss)$299 
(1) Other expenses for the Company's property and casualty 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.
Three months ended June 30, 2024
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Operating revenues 
Net earned premiums$831 $1,247 $311 $109 $— $— $2,498 
Net investment income154 175 32 239 18 — 618 
Non-insurance warranty revenue404 — — — — — 404 
Other revenues(1)10 — — 3 (3)9 
Total operating revenues1,388 1,432 343 348 21 (3)3,529 
Claims, benefits and expenses      
Net incurred claims and benefits492 846 184 325 27 — 1,874 
Policyholders’ dividends3 5 — — — — 8 
Amortization of deferred acquisition costs180 199 56 — — — 435 
Non-insurance warranty expense388 — — — — — 388 
Insurance related administrative expenses96 158 46 29 — — 329 
Interest expense(1)— — — 35 — 34 
Other expenses (1)
14 13 1 1 23 (3)49 
Total claims, benefits and expenses1,172 1,221 287 355 85 (3)3,117 
Income tax (expense) benefit on core income (loss)(47)(44)(12)6 11 — (86)
Core income (loss) $169 $167 $44 $(1)$(53)$— $326 
Net investment gains (losses)(10)
Income tax (expense) benefit on net investment gains (losses)1 
Net investment gains (losses), after tax(9)
Net income (loss)$317 
(1) Other expenses for the Company's property and casualty 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.
Six months ended June 30, 2025
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Operating revenues 
Net earned premiums$1,692 $2,782 $634 $212 $— $— $5,320 
Net investment income321 383 72 461 29 — 1,266 
Non-insurance warranty revenue795 — — — — — 795 
Other revenues— 18 — — 6 (6)18 
Total operating revenues2,808 3,183 706 673 35 (6)7,399 
Claims, benefits and expenses      
Net incurred claims and benefits1,028 1,947 387 613 117 — 4,092 
Policyholders’ dividends5 15 — — — — 20 
Amortization of deferred acquisition costs384 430 126 — — — 940 
Non-insurance warranty expense769 — — — — — 769 
Insurance related administrative expenses180 333 83 61 1 — 658 
Interest expense— — — — 63 — 63 
Other expenses (1)
25 25 (11)1 39 (6)73 
Total claims, benefits and expenses2,391 2,750 585 675 220 (6)6,615 
Income tax (expense) benefit on core income (loss)(90)(91)(31)9 35 — (168)
Core income (loss) $327 $342 $90 $7 $(150)$— $616 
Net investment gains (losses)(55)
Income tax (expense) benefit on net investment gains (losses)12 
Net investment gains (losses), after tax(43)
Net income (loss)$573 
(1) Other expenses for the Company's property and casualty 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.
June 30, 2025SpecialtyCommercialInternationalLife &
Group		Corporate
& Other
(In millions)EliminationsTotal
Reinsurance receivables$1,777 $1,740 $550 $79 $2,293 $— $6,439 
Insurance receivables1,028 2,556 503 1 1 — 4,089 
Deferred acquisition costs447 420 154 — — — 1,021 
Goodwill117 — 31 — — — 148 
Deferred non-insurance warranty acquisition expense3,441 — — — — — 3,441 
Insurance reserves 
Claim and claim adjustment expenses7,704 11,888 3,256 611 2,744 — 26,203 
Unearned premiums3,283 3,635 871 101 — — 7,890 
Future policy benefits— — — 13,329 — — 13,329 
Deferred non-insurance warranty revenue4,421 — — — — — 4,421 
Six months ended June 30, 2024
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Operating revenues 
Net earned premiums$1,645 $2,449 $626 $219 $— $— $4,939 
Net investment income304 351 63 470 39 — 1,227 
Non-insurance warranty revenue811 — — — — — 811 
Other revenues— 18 — — 6 (6)18 
Total operating revenues2,760 2,818 689 689 45 (6)6,995 
Claims, benefits and expenses    
Net incurred claims and benefits969 1,674 373 637 19 — 3,672 
Policyholders’ dividends5 12 — — — — 17 
Amortization of deferred acquisition costs358 399 122 — — — 879 
Non-insurance warranty expense782 — — — — — 782 
Insurance related administrative expenses177 296 85 58 — — 616 
Interest expense— — — — 69 — 69 
Other expenses (1)
28 25 3 1 48 (6)99 
Total claims, benefits and expenses2,319 2,406 583 696 136 (6)6,134 
Income tax (expense) benefit on core income (loss)(95)(87)(25)11 16 — (180)
Core income (loss)$346 $325 $81 $4 $(75)$— $681 
Net investment gains (losses)(32)
Income tax (expense) benefit on net investment gains (losses)6 
Net investment gains (losses), after tax(26)
Net income (loss)$655 
(1) Other expenses for the Company's property and casualty 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.
Periods ended June 30Three MonthsSix Months
(In millions)2025202420252024
Specialty
Non-catastrophe net incurred claim and claim adjustment expenses related to current year$519 $495 $1,018 $977 
Catastrophe losses— — — — 
(Favorable) unfavorable development (1)
— (3)10 (8)
Commercial
Non-catastrophe net incurred claim and claim adjustment expenses related to current year$886 $775 $1,754 $1,521 
Catastrophe losses57 76 143 158 
(Favorable) unfavorable development (1)
(4)(6)47 (8)
International
Non-catastrophe net incurred claim and claim adjustment expenses related to current year$190 $181 $371 $364 
Catastrophe losses5 6 16 12 
(Favorable) unfavorable development (1)
— (3)— (3)
(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.
Periods ended June 30Three MonthsSix Months
(In millions)2025202420252024
Specialty
Management & Professional Liability$778 $733 $1,524 $1,462 
Surety205 196 393 378 
Warranty & Alternative Risks446 459 891 920 
Specialty revenues1,429 1,388 2,808 2,760 
Commercial
Middle Market481 427 947 859 
Construction517 483 1,027 938 
Small Business161 157 317 311 
Other Commercial459 365 892 710 
Commercial revenues1,618 1,432 3,183 2,818 
International
Canada104 99 198 197 
Europe156 147 300 290 
Hardy102 97 208 202 
International revenues362 343 706 689 
Life & Group revenues341 348 673 689 
Corporate & Other revenues 16 21 35 45 
Eliminations(3)(3)(6)(6)
Total operating revenues3,763 3,529 7,399 6,995 
Net investment gains (losses)(46)(10)(55)(32)
Total revenues$3,717 $3,519 $7,344 $6,963