CNA Reports Q3 Results

CNA Financial Corporation today announced third quarter of 2005 results:

— Net income for the third quarter of 2005 of $3 million as compared with a net loss of $27 million in the third quarter of 2004

— Net operating loss for the third quarter of 2005 of $39 million as compared with net operating income of $15 million for the same period in 2004

— Third quarter 2005 results were negatively affected by $294 million after-tax due to the impact of third quarter catastrophes, primarily Hurricane Katrina

— Property and Casualty combined ratio of 93.5 percent before the 26.4 point impact related to catastrophes

Net operating income for the three months ended Sept. 30, 2005 decreased $54 million as compared with the same period in 2004. Operating results in the third quarter were adversely impacted by third quarter catastrophes of $294 million after-tax.

The third quarter operating results were adversely impacted by catastrophes of $181 million after-tax. In the third quarter 2004, Property & Casualty Operations produced a combined ratio of 96.1 percent before the 15.7 point impact of catastrophes.

Also contributing to operating results were increased net investment income and a decrease in the provision for uncollectible insurance receivables. Additionally, third quarter operating results were adversely impacted by lower earned premiums in the Standard Lines segment.

Net income for the three months ended Sept. 30, 2005 increased $30 million as compared with the same period in 2004. Net income was affected by the factors mentioned above, as well as improved net realized investment gains. Net realized investment gains for the three months ended September 30, 2005 increased $84 million as compared with the same period in 2004. This increase was primarily driven by favorable results in derivative securities.

Chicago-based CNA is the country’s seventh largest commercial insurance writer and the 14th largest property and casualty company. CNA’s insurance products include standard commercial lines, specialty lines, surety, marine and other property and casualty coverages. For more information, see CNA’s Web site at www.cna.com.