Business Segments

6 Months Ended

Jun. 30, 2026

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, 2025. 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, 2026	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Operating revenues
Net earned premiums	$	878	$	1,441	$	337	$	103	$	—	$	—	$	2,759
Net investment income	171		246		44		230		10		—		701
Non-insurance warranty revenue	367		—		—		—		—		—		367
Other revenues	—		8		—		(1)		3		(3)		7
Total operating revenues	1,416		1,695		381		332		13		(3)		3,834
Claims, benefits and expenses
Net incurred claims and benefits	551		1,003		209		320		77		—		2,160
Policyholders’ dividends	3		6		—		—		—		—		9
Amortization of deferred acquisition costs	201		207		73		—		—		—		481
Non-insurance warranty expense	356		—		—		—		—		—		356
Insurance related administrative expenses	91		175		45		31		1		—		343
Interest expense	—		—		—		—		33		—		33
Other segment items (1)	15		11		—		(1)		20		(3)		42
Total claims, benefits and expenses	1,217		1,402		327		350		131		(3)		3,424
Income tax (expense) benefit on core income (loss)	(42)		(61)		(17)		8		26		—		(86)
Core income (loss)	$	157	$	232	$	37	$	(10)	$	(92)	$	—	$	324
Net investment gains (losses)													(5)
Income tax (expense) benefit on net investment gains (losses)													2
Net investment gains (losses), after tax													(3)
Net income (loss)													$	321

(1) Other segment items 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 segment items 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, 2025	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Operating revenues
Net earned premiums	$	862	$	1,402	$	324	$	106	$	—	$	—	$	2,694
Net investment income	170		206		38		235		13		—		662
Non-insurance warranty revenue	398		—		—		—		—		—		398
Other revenues	(1)		10		—		—		3		(3)		9
Total operating revenues	1,429		1,618		362		341		16		(3)		3,763
Claims, benefits and expenses
Net incurred claims and benefits	519		940		195		313		108		—		2,075
Policyholders’ dividends	3		7		—		—		—		—		10
Amortization of deferred acquisition costs	195		211		63		—		—		—		469
Non-insurance warranty expense	384		—		—		—		—		—		384
Insurance related administrative expenses	92		170		43		31		1		—		337
Interest expense	—		—		—		—		31		—		31
Other segment items (1)	10		15		(10)		1		18		(3)		31
Total claims, benefits and expenses	1,203		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 segment items 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 segment items 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, 2026	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Operating revenues
Net earned premiums	$	1,730	$	2,853	$	671	$	206	$	—	$	—	$	5,460
Net investment income	313		436		87		454		21		—		1,311
Non-insurance warranty revenue	741		—		—		—		—		—		741
Other revenues	1		17		—		(1)		6		(6)		17
Total operating revenues	2,785		3,306		758		659		27		(6)		7,529
Claims, benefits and expenses
Net incurred claims and benefits	1,137		2,079		413		634		60		—		4,323
Policyholders’ dividends	7		14		—		—		—		—		21
Amortization of deferred acquisition costs	398		413		146		—		—		—		957
Non-insurance warranty expense	712		—		—		—		—		—		712
Insurance related administrative expenses	180		346		88		60		1		—		675
Interest expense	—		—		—		—		66		—		66
Other segment items (1)	27		22		2		—		35		(6)		80
Total claims, benefits and expenses	2,461		2,874		649		694		162		(6)		6,834
Income tax (expense) benefit on core income (loss)	(68)		(88)		(35)		16		29		—		(146)
Core income (loss)	$	256	$	344	$	74	$	(19)	$	(106)	$	—	$	549
Net investment gains (losses)													(23)
Income tax (expense) benefit on net investment gains (losses)													6
Net investment gains (losses), after tax													(17)
Net income (loss)													$	532

(1) Other segment items 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 segment items for the Corporate & Other segment reflects certain corporate expenses not attributable to the Company's ongoing property and casualty insurance operations.

June 30, 2026	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Reinsurance receivables	$	1,723	$	1,933	$	623	$	54	$	2,191	$	—	$	6,524
Insurance receivables	926		2,799		498		1		—		—		4,224
Deferred acquisition costs	462		412		152		—		—		—		1,026
Goodwill	117		—		30		—		—		—		147
Deferred non-insurance warranty acquisition expense	2,981		—		—		—		—		—		2,981
Insurance reserves
Claim and claim adjustment expenses	8,013		12,892		3,496		575		2,514		—		27,490
Unearned premiums	3,314		3,764		860		97		—		—		8,035
Future policy benefits	—		—		—		13,262		—		—		13,262
Deferred non-insurance warranty revenue	3,798		—		—		—		—		—		3,798

Six months ended June 30, 2025	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Operating revenues
Net earned premiums	$	1,692	$	2,782	$	634	$	212	$	—	$	—	$	5,320
Net investment income	321		383		72		461		29		—		1,266
Non-insurance warranty revenue	795		—		—		—		—		—		795
Other revenues	—		18		—		—		6		(6)		18
Total operating revenues	2,808		3,183		706		673		35		(6)		7,399
Claims, benefits and expenses
Net incurred claims and benefits	1,028		1,947		387		613		117		—		4,092
Policyholders’ dividends	5		15		—		—		—		—		20
Amortization of deferred acquisition costs	384		430		126		—		—		—		940
Non-insurance warranty expense	769		—		—		—		—		—		769
Insurance related administrative expenses	180		333		83		61		1		—		658
Interest expense	—		—		—		—		63		—		63
Other segment items (1)	25		25		(11)		1		39		(6)		73
Total claims, benefits and expenses	2,391		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 segment items 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 segment items for the Corporate & Other segment reflects certain corporate expenses not attributable to the Company's ongoing property and casualty insurance operations.

December 31, 2025	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Reinsurance receivables	$	1,716	$	1,762	$	577	$	56	$	2,297	$	—	$	6,408
Insurance receivables	1,008		2,315		438		2		1		—		3,764
Deferred acquisition costs	447		391		148		—		—		—		986
Goodwill	117		—		31		—		—		—		148
Deferred non-insurance warranty acquisition expense	3,220		—		—		—		—		—		3,220
Insurance reserves
Claim and claim adjustment expenses	7,784		12,249		3,376		591		2,599		—		26,599
Unearned premiums	3,317		3,411		819		88		—		—		7,635
Future policy benefits	—		—		—		13,448		—		—		13,448
Deferred non-insurance warranty revenue	4,138		—		—		—		—		—		4,138

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 30	Three Months				Six Months
(In millions)	2026		2025		2026		2025
Specialty
Non-catastrophe net incurred claim and claim adjustment expenses related to current year	$	551	$	519	$	1,087	$	1,018
Catastrophe losses	—		—		—		—
(Favorable) unfavorable development (1)	(1)		—		44		10
Commercial
Non-catastrophe net incurred claim and claim adjustment expenses related to current year	$	953	$	886	$	1,889	$	1,754
Catastrophe losses	53		57		137		143
(Favorable) unfavorable development (1)	(5)		(4)		50		47
International
Non-catastrophe net incurred claim and claim adjustment expenses related to current year	$	202	$	190	$	402	$	371
Catastrophe losses	7		5		11		16
(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.

Periods ended June 30	Three Months				Six Months
(In millions)	2026		2025		2026		2025
Specialty
Management & Professional Liability	$	802	$	778	$	1,563	$	1,524
Surety	208		205		399		393
Warranty & Alternative Risks	406		446		823		891
Specialty revenues	1,416		1,429		2,785		2,808
Commercial
Middle Market (1)	509		468		988		921
Construction (1)	512		514		1,013		1,020
Small Business	157		161		308		317
Other Commercial (1)	517		475		997		925
Commercial revenues	1,695		1,618		3,306		3,183
International
Canada	114		104		221		198
Europe	166		156		335		300
Hardy	101		102		202		208
International revenues	381		362		758		706
Life & Group revenues	332		341		659		673
Corporate & Other revenues	13		16		27		35
Eliminations	(3)		(3)		(6)		(6)
Total operating revenues	3,834		3,763		7,529		7,399
Net investment gains (losses)	(5)		(46)		(23)		(55)
Total revenues	$	3,829	$	3,717	$	7,506	$	7,344

(1) Effective March 31, 2026, certain Commercial lines of businesses were realigned to reflect changes in management's responsibility for those businesses. Prior period information has been conformed to the new line of business presentation.