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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The CNA Tax Group is included in the consolidated federal income tax return of Loews and its eligible subsidiaries. Loews and the Company have agreed that for each taxable year, the Company will 1) be paid by Loews the amount, if any, by which the Loews consolidated federal income tax liability is reduced by virtue of the inclusion of the CNA Tax Group in the Loews consolidated federal income tax return, or 2) pay to Loews an amount, if any, equal to the federal income tax that would have been payable by the CNA Tax Group filing a separate consolidated tax return. In the event that Loews should have a net operating loss in the future computed on the basis of filing a separate consolidated tax return without the CNA Tax Group, the Company may be required to repay tax recoveries previously received from Loews. This agreement may be canceled by either party upon 30 days written notice.
For the years ended December 31, 2025, 2024 and 2023, the Company paid $204 million, $186 million and $263 million to Loews related to federal income taxes.
For 2023 through 2025, 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 2023, the Company was selected to participate in the phase of CAP reserved for taxpayers whose risk of noncompliance did not support use of IRS resources. The Company believes that participation in CAP should reduce tax-related uncertainties, if any.
As of December 31, 2025 and 2024, there were no 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 2025, 2024 and 2023 the Company recognized no interest and no penalties. There were no amounts accrued for interest or penalties as of December 31, 2025 or 2024.
The following table presents the Company's U.S. and foreign income before income tax.
Years ended December 31
(In millions)202520242023
Income before income tax:
U.S.$1,336 $1,009 $1,320 
Foreign284 202 198 
Total income before income tax$1,620 $1,211 $1,518 
The following table presents the Company's federal, foreign and state and local income tax expense.
Years ended December 31
(In millions)202520242023
Income tax expense:
Federal$(260)$(174)$(245)
Foreign(69)(63)(52)
State and local(13)(15)(16)
Total income tax expense$(342)$(252)$(313)
The following table presents a reconciliation between the Company's income tax expense at statutory rates and the recorded income tax expense.
Years ended December 31
202520242023
(In millions, except percentages)AmountPercentAmountPercentAmountPercent
Income tax expense at statutory rates$(340)21.0 %$(254)21.0 %$(319)21.0 %
State and local income taxes, net of federal income tax effect (1)
(10)0.6 %(12)1.0 %(13)0.8 %
Foreign tax effects
Canada(22)1.4 %(32)2.6 %(23)1.5 %
Other foreign jurisdictions(9)0.5 %(7)0.6 %(7)0.4 %
Effect of cross-border tax laws(6)0.3 %— — %(1)— %
Tax credits
Foreign tax credits25 (1.5)%36 (3.0)%26 (1.7)%
Nontaxable or nondeductible items
Tax exempt income30 (1.8)%26 (2.1)%31 (2.0)%
Other nontaxable or nondeductible items(10)0.6 %(9)0.8 %(7)0.5 %
Income tax expense$(342)21.1 %$(252)20.9 %$(313)20.5 %
(1) State taxes in Illinois and Florida made up the majority (greater than 50%) of the tax effect in this category for the years ended December 31, 2025, 2024 and 2023.
As of December 31, 2025, no deferred taxes are required on the undistributed earnings of subsidiaries subject to tax.
The following table presents the current and deferred components of the Company's income tax expense.
Years ended December 31
(In millions)202520242023
Current tax expense$(267)$(297)$(311)
Deferred tax (expense) benefit(75)45 (2)
Total income tax expense$(342)$(252)$(313)
The deferred tax effects of the significant components of the Company's deferred tax assets and liabilities are presented in the following table.
December 31
(In millions)20252024
Deferred Tax Assets:
Insurance reserves:
Property and casualty claim and claim adjustment expense reserves$276 $234 
Unearned premium reserves227 225 
Deferred non-insurance warranty revenue53 59 
Employee benefits7 13 
Deferred retroactive reinsurance benefit99 89 
Net unrealized losses258 494 
Other assets101 107 
Gross deferred tax assets1,021 1,221 
Deferred Tax Liabilities:
Investment valuation differences168 130 
Deferred acquisition costs143 140 
Policyholder reserves25 48 
Software and hardware57 17 
Other liabilities53 36 
Gross deferred tax liabilities446 371 
Net deferred tax asset$575 $850 
As of December 31, 2025, the CNA Tax Group had no loss carryforwards and a tax credit carryforward of $6 million which expires in 2034. The foreign operations had loss carryforwards of $83 million, which have no expiration. The foreign operations had a tax credit carryforward of $13 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, no valuation allowance was recorded as of December 31, 2025 or 2024.