Reinsurance

12 Months Ended

Dec. 31, 2025

CNA cedes insurance to reinsurers to limit its maximum loss, provide greater diversification of risk, minimize exposures on larger risks and to exit certain lines of business. The ceding of insurance does not discharge the primary liability of CNA. A credit exposure exists with respect to reinsurance ceded to the extent that any reinsurer is unable to meet its obligations. A collectability exposure also exists to the extent that the reinsurer disputes the liabilities assumed under reinsurance agreements. Property and casualty reinsurance coverages are tailored to the specific risk characteristics of each product line and CNA’s retained amount varies by type of coverage. Reinsurance contracts are purchased to protect specific lines of business such as property and workers’ compensation. Corporate catastrophe reinsurance is also purchased for property and workers’ compensation exposure. CNA also utilizes facultative reinsurance in certain lines. In addition, CNA assumes reinsurance, primarily through Hardy and as a member of various reinsurance pools and associations.

The following table presents the amounts receivable from reinsurers:


December 31	2025		2024
(In millions)

Reinsurance receivables related to insurance reserves:
Ceded claim and claim adjustment expenses	$	5,982	$	5,713

Reinsurance receivables related to paid losses	426		359
Reinsurance receivables	6,408		6,072
Less allowance for doubtful accounts	27		21
Reinsurance receivables, net of allowance for doubtful accounts	$	6,381	$	6,051

CNA has established an allowance for doubtful accounts on 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. The following table summarizes the outstanding amount of voluntary reinsurance receivables, gross of any collateral arrangements, by financial strength rating:


As of December 31, 2025
(In millions)

A- to A++	$	4,864
B- to B++	967
Insolvent	9
Total voluntary reinsurance outstanding balance (a)	$	5,840


(a)			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. See Note 7 for more information on the LPT. Also excluded are receivables from involuntary pools.

CNA 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, CNA 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 $3.8 billion and $3.4 billion at December 31, 2025 and 2024.

CNA’s largest recoverables from a single reinsurer, including ceded unearned premium reserves as of December 31, 2025 were approximately $1.9 billion from subsidiaries of the Berkshire Hathaway Insurance Group, $466 million from Cavello Bay Reinsurance Limited and $390 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 NICO has assumed the credit risk under the terms of the loss portfolio transfer as discussed in Note 7.

The effects of reinsurance on earned premiums are presented in the following table:


									Assumed/
	Direct		Assumed		Ceded		Net		Net %
(In millions)

Year Ended December 31, 2025

Property and casualty	$	14,974	$	253	$	4,750	$	10,477	2.4	%
Long-term care	383		40				423		9.5
Earned premiums	$	15,357	$	293	$	4,750	$	10,900	2.7	%

Year Ended December 31, 2024

Property and casualty	$	14,629	$	252	$	5,107	$	9,774	2.6	%
Long-term care	396		41				437		9.4
Earned premiums	$	15,025	$	293	$	5,107	$	10,211	2.9	%

Year Ended December 31, 2023

Property and casualty	$	13,908	$	223	$	5,102	$	9,029	2.5	%
Long-term care	407		44				451		9.8
Earned premiums	$	14,315	$	267	$	5,102	$	9,480	2.8	%

Included in the direct and ceded earned premiums for the years ended December 31, 2025, 2024 and 2023 are $2.3 billion, $2.7 billion and $2.9 billion related to insurance policies supporting service contracts associated with portable electronic devices, which are 100% reinsured under a significant third party warranty 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 the risk. CNA 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 $2.9 billion, $3.5 billion and $2.8 billion for the years ended December 31, 2025, 2024 and 2023, including $1.3 billion, $1.7 billion and $1.5 billion 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.