|        |
|--------|
|        |  |  |  |  |
|   |   |   |   |   |

|        |
|--------|
|        |  |  |  |  |
|   |   |   |   |   |

----

|                                                                                                                                                                                                                                       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                       |  |
|                                                                                                                                                                                                                                  | Page |
| Consolidated Results                                                                                                                                                                                                                  |   |
| Statements of Operations..................................................................................................................................................................................................            | 1 |
| Components of Income (Loss), Per Share Data and Return on Equity.............................................................................................................................                                         | 2 |
| Selected Balance Sheet Data and Statement of Cash Flows Data...................................................................................................................................                                       | 3 |
| Property & Casualty - Results of Operations                                                                                                                                                                                       |   |
| Property & Casualty...........................................................................................................................................................................................................    | 4 |
| Specialty............................................................................................................................................................................................................................ | 5 |
| Commercial.......................................................................................................................................................................................................................     | 6 |
| International.......................................................................................................................................................................................................................  | 7 |
| Non-Core - Results of Operations                                                                                                                                                                                                      |   |
| Life & Group Non-Core......................................................................................................................................................................................................       | 8 |
| Corporate & Other Non-Core.............................................................................................................................................................................................           | 9 |
| Investment Information                                                                                                                                                                                                                |   |
| Investment Summary - Consolidated................................................................................................................................................................................                     | 10 |
| Investment Summary - Property & Casualty and Corporate & Other Non-Core...............................................................................................................                                        | 11 |
| Investment Summary - Life & Group Non-Core.................................................................................................................................................................                       | 12 |
| Investments - Fixed Maturity Securities by Credit Rating..................................................................................................................................................                            | 13 |
| Components of Net Investment Income............................................................................................................................................................................                  | 14 |
| Other                                                                                                                                                                                                                                 |   |
| Claim & Claim Adjustment Expense Reserve Rollforward................................................................................................................................................                              | 15 |
| Life & Group Non-Core Policyholder Reserves.................................................................................................................................................................                      | 16 |
| Definitions and Presentation..............................................................................................................................................................................................            | 17 |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |
| Three months ended March 31                   |   |   |
| (In millions)                                 | 2016 |   | 2015 |   | Change |   |
| Revenues:                                     |   |   |   |   |   |   |
| Net earned premiums                           | $ | 1,699 |  |   | $ | 1,687 |  |   | 1 |  | % |
| Net investment income                         | 435 |  |   | 558 |  |   | (22 | ) |   |
| Net realized investment gains (losses):       |   |   |   |   |   |   |
| Other-than-temporary impairment (OTTI) losses | (23 | ) |   | (12 | ) |   |  |   |
| Other net realized investment gains (losses)  | (13 | ) |   | 22 |  |   |  |  |   |
| Net realized investment gains (losses)        | (36 | ) |   | 10 |  |   |  |  |   |
| Other revenues                                | 97 |  |   | 97 |  |   |  |   |
| Total revenues                                | 2,195 |  |   | 2,352 |  |   | (7 | ) |   |
| Claims, Benefits and Expenses:                |   |   |   |   |   |   |
| Insurance claims and policyholders' benefits  | 1,408 |  |   | 1,339 |  |   |  |  |   |
| Amortization of deferred acquisition costs    | 307 |  |   | 303 |  |   |  |  |   |
| Other operating expenses                      | 381 |  |   | 358 |  |   |  |  |   |
| Interest                                      | 42 |  |   | 39 |  |   |  |  |   |
| Total claims, benefits and expenses           | 2,138 |  |   | 2,039 |  |   | (5 | ) |   |
| Income (loss) before income tax               | 57 |  |   | 313 |  |   |  |  |   |
| Income tax (expense) benefit                  | 9 |  |   | (80 | ) |   |  |  |   |
| Net income (loss)                             | $ | 66 |  |   | $ | 233 |  |   | (72 | ) | % |

----

|                                                                        |
|------------------------------------------------------------------------|
|                                                                        |  |  |  |  |  |  |  |  |
| Three months ended March 31                                            |   |   |
| (In millions, except per share data)                                   | 2016 |   | 2015 |   |
| Components of Income (Loss)                                            |   |   |   |   |
| Net operating income (loss)                                            | $ | 91 |  |   | $ | 225 |  |   |
| Net realized investment gains (losses)                                 | (25 | ) |   | 8 |  |   |
| Net income (loss)                                                      | $ | 66 |  |   | $ | 233 |  |   |
|                                                                   |   |   |   |   |
| Diluted Earnings (Loss) Per Common Share                               |   |   |   |   |
| Net operating income (loss)                                            | $ | 0.34 |  |   | $ | 0.83 |  |   |
| Net realized investment gains (losses)                                 | (0.10 | ) |   | 0.03 |  |   |
| Diluted earnings (loss) per share                                      | $ | 0.24 |  |  | $ | 0.86 |  |   |
|                                                                   |   |   |   |   |
| Weighted Average Outstanding Common Stock and Common Stock Equivalents |   |   |   |   |
| Basic                                                                  | 270.3 |  |   | 270.1 |  |   |
| Diluted                                                                | 270.9 |  |   | 270.7 |  |   |
|                                                                   |   |   |   |   |
| Return on Equity                                                       |   |   |   |   |
| Net income (loss) (1)                                                  | 2.3 |  | % | 7.4 |  | % |
| Net operating income (loss) (2)                                        | 3.1 |  |   | 7.4 |  |   |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |  |  |  |
| (In millions, except per share data)                                        | March 31, 2016 |   | December 31, 2015 |
| Total investments                                                           | $ | 45,371 |  |   | $ | 44,699 |  |
| Reinsurance receivables, net of allowance for uncollectible receivables     | 4,692 |  |   | 4,453 |  |
| Total assets                                                                | 55,502 |  |   | 55,045 |  |
| Insurance reserves                                                          | 37,325 |  |   | 36,486 |  |
| Debt                                                                        | 2,708 |  |   | 2,560 |  |
| Total liabilities                                                           | 44,032 |  |   | 43,289 |  |
| Accumulated other comprehensive income (loss) (1)                           | (56 | ) |   | (315 | ) |
| Total stockholders' equity                                                  | 11,470 |  |   | 11,756 |  |
|                                                                        |   |   |   |
| Book value per common share                                                 | $ | 42.41 |  |   | $ | 43.49 |  |
| Book value per common share excluding AOCI                                  | $ | 42.61 |  |   | $ | 44.66 |  |
|                                                                        |   |   |   |
| Outstanding shares of common stock (in millions of shares)                  | 270.5 |  |   | 270.3 |  |
|                                                                        |   |   |   |
| Statutory capital and surplus - Combined Continental Casualty Companies (2) | $ | 10,260 |  |   | $ | 10,723 |  |

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |
| Three months ended March 31                                                     | 2016 |   | 2015 |
| Net cash flows provided (used) by operating activities                          | $ | 334 |  |   | $ | 94 |  |
| Net cash flows provided (used) by investing activities                          | (9 | ) |   | 526 |  |
| Net cash flows provided (used) by financing activities                          | (469 | ) |   | (603 | ) |
| Net cash flows provided (used) by operating, investing and financing activities | $ | (144 | ) |   | $ | 17 |  |

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |
| Three months ended March 31                                     |   |   |
| (In millions)                                                   | 2016 |   | 2015 |   | Change |   |
| Gross written premiums                                          | $ | 2,674 |  |   | $ | 2,536 |  |   | 5 |  | % |
| Net written premiums                                            | 1,668 |  |   | 1,669 |  |   | — |  |   |
|                                                            |   |   |   |   |   |   |
| Net earned premiums                                             | 1,568 |  |   | 1,549 |  |   | 1 |  |   |
| Net investment income                                           | 245 |  |   | 373 |  |   |  |  |   |
| Other revenues                                                  | 94 |  |   | 87 |  |   |  |  |   |
| Total operating revenues                                        | 1,907 |  |   | 2,009 |  |   | (5 | ) |   |
| Insurance claims and policyholders' benefits                    | 957 |  |   | 1,003 |  |   |  |  |   |
| Amortization of deferred acquisition costs                      | 307 |  |   | 296 |  |   |  |  |   |
| Other insurance related expenses                                | 244 |  |   | 233 |  |   |  |  |   |
| Other expenses                                                  | 89 |  |   | 80 |  |   |  |  |   |
| Total claims, benefits and expenses                             | 1,597 |  |   | 1,612 |  |   | 1 |  |   |
| Operating income (loss) before income tax                       | 310 |  |   | 397 |  |   |  |  |   |
| Income tax (expense) benefit on operating income (loss)         | (103 | ) |   | (133 | ) |   |  |  |   |
| Net operating income (loss)                                     | $ | 207 |  |   | $ | 264 |  |   | (22 | ) | % |
|                                                            |   |   |   |   |  |  |   |
| Other Performance Metrics                                       |   |   |   |   |  |  |   |
| Underwriting gain (loss)                                        | $ | 60 |  |   | $ | 17 |  |   | N/M |  | % |
|                                                            |   |   |   |   |   |   |
| Loss & LAE ratio                                            | 60.7 |  | % | 64.5 |  | % | 3.8 |  | pts |
| Acquisition expense ratio                                       | 19.4 |  |   | 19.4 |  |   | — |  |   |
| Underwriting expense ratio                                      | 15.8 |  |   | 14.7 |  |   | (1.1 | ) |   |
| Expense ratio                                                   | 35.2 |  |   | 34.1 |  |   | (1.1 | ) |   |
| Dividend ratio                                                  | 0.2 |  |   | 0.3 |  |   | 0.1 |  |   |
| Combined ratio                                                  | 96.1 |  | % | 98.9 |  | % | 2.8 |  |   |
| Combined ratio excluding catastrophes and development           | 97.4 |  | % | 96.7 |  | % | (0.7 | ) | pts |
|                                                            |   |   |   |   |   |   |
| Net accident year catastrophe losses incurred                   | $ | 36 |  |   | $ | 29 |  |   |  |   |
| Effect on loss & LAE ratio                                  | 2.3 |  | % | 1.9 |  | % | (0.4 | ) | pts |
|                                                            |   |   |   |   |   |   |
| Net prior year development and other: (favorable) / unfavorable | $ | (61 | ) |   | $ | 8 |  |   |  |  |   |
| Effect on loss & LAE ratio                                  | (3.6 | ) | % | 0.3 |  | % | 3.9 |  | pts |
|                                                            |   |   |   |   |   |   |
| Rate                                                            | — |  | % | 1 |  | % | (1 | ) | pts |
| Retention                                                       | 83 |  |   | 80 |  |   | 3 |  |   |
| New business (a)                                                | $ | 262 |  |   | $ | 249 |  |   | 5 |  | % |

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |
| Three months ended March 31                                     |   |   |
| (In millions)                                                   | 2016 |   | 2015 |   | Change |   |
| Gross written premiums                                          | $ | 1,632 |  |   | $ | 1,489 |  |   | 10 |  | % |
| Net written premiums                                            | 684 |  |   | 698 |  |   | (2 | ) |   |
|                                                            |   |   |   |   |   |   |
| Net earned premiums                                             | 682 |  |   | 680 |  |   | — |  |   |
| Net investment income                                           | 107 |  |   | 155 |  |   |  |  |   |
| Other revenues                                                  | 87 |  |   | 78 |  |   |  |  |   |
| Total operating revenues                                        | 876 |  |   | 913 |  |   | (4 | ) |   |
| Insurance claims and policyholders' benefits                    | 391 |  |   | 430 |  |   |  |  |   |
| Amortization of deferred acquisition costs                      | 144 |  |   | 144 |  |   |  |  |   |
| Other insurance related expenses                                | 75 |  |   | 69 |  |   |  |  |   |
| Other expenses                                                  | 75 |  |   | 67 |  |   |  |  |   |
| Total claims, benefits and expenses                             | 685 |  |   | 710 |  |   | 4 |  |   |
| Operating income (loss) before income tax                       | 191 |  |   | 203 |  |   |  |  |   |
| Income tax (expense) benefit on operating income (loss)         | (64 | ) |   | (68 | ) |   |  |  |   |
| Net operating income (loss)                                     | $ | 127 |  |   | $ | 135 |  |   | (6 | ) | % |
|                                                            |   |   |   |   |   |   |
| Other Performance Metrics                                       |   |   |   |   |   |   |
| Underwriting gain (loss)                                        | $ | 72 |  |   | $ | 37 |  |   | 95 |  | % |
|                                                            |   |   |   |   |   |   |
| Loss & LAE ratio                                            | 57.1 |  | % | 63.1 |  | % | 6.0 |  | pts |
| Acquisition expense ratio                                       | 19.9 |  |   | 19.9 |  |   | — |  |   |
| Underwriting expense ratio                                      | 12.2 |  |   | 11.4 |  |   | (0.8 | ) |   |
| Expense ratio                                                   | 32.1 |  |   | 31.3 |  |   | (0.8 | ) |   |
| Dividend ratio                                                  | 0.2 |  |   | 0.2 |  |   | — |  |   |
| Combined ratio                                                  | 89.4 |  | % | 94.6 |  | % | 5.2 |  |   |
| Combined ratio excluding catastrophes and development           | 94.8 |  | % | 93.7 |  | % | (1.1 | ) | pts |
|                                                            |   |   |   |   |   |   |
| Net accident year catastrophe losses incurred                   | $ | 4 |  |   | $ | 7 |  |   |  |  |   |
| Effect on loss & LAE ratio                                  | 0.6 |  | % | 1.1 |  | % | 0.5 |  | pts |
|                                                            |   |   |   |   |   |   |
| Net prior year development and other: (favorable) / unfavorable | $ | (45 | ) |   | $ | (4 | ) |   |  |  |   |
| Effect on loss & LAE ratio                                  | (6.0 | ) | % | (0.2 | ) | % | 5.8 |  | pts |
|                                                            |   |   |   |   |   |   |
| Rate                                                            | 1 |  | % | 1 |  | % | — |  | pts |
| Retention                                                       | 87 |  |   | 86 |  |   | 1 |  |   |
| New business                                                    | $ | 65 |  |   | $ | 76 |  |   | (14 | ) | % |

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |
| Three months ended March 31                                     |   |   |
| (In millions)                                                   | 2016 |   | 2015 |   | Change |   |
| Gross written premiums                                          | $ | 779 |  |   | $ | 786 |  |   | (1 | ) | % |
| Net written premiums                                            | 748 |  |   | 759 |  |   | (1 | ) |   |
|                                                            |   |   |   |   |   |   |
| Net earned premiums                                             | 688 |  |   | 678 |  |   | 1 |  |   |
| Net investment income                                           | 126 |  |   | 204 |  |   |  |  |   |
| Other revenues                                                  | 6 |  |   | 9 |  |   |  |  |   |
| Total operating revenues                                        | 820 |  |   | 891 |  |   | (8 | ) |   |
| Insurance claims and policyholders' benefits                    | 445 |  |   | 457 |  |   |  |  |   |
| Amortization of deferred acquisition costs                      | 116 |  |   | 117 |  |   |  |  |   |
| Other insurance related expenses                                | 141 |  |   | 127 |  |   |  |  |   |
| Other expenses                                                  | 5 |  |   | 8 |  |   |  |  |   |
| Total claims, benefits and expenses                             | 707 |  |   | 709 |  |   | — |  |   |
| Operating income (loss) before income tax                       | 113 |  |   | 182 |  |   |  |  |   |
| Income tax (expense) benefit on operating income (loss)         | (39 | ) |   | (62 | ) |   |  |  |   |
| Net operating income (loss)                                     | $ | 74 |  |   | $ | 120 |  |   | (38 | ) | % |
|                                                            |   |   |   |   |  |  |   |
| Other Performance Metrics                                       |   |   |   |   |  |  |   |
| Underwriting gain (loss)                                        | $ | (14 | ) |   | $ | (23 | ) |   | 39 |  | % |
|                                                            |   |   |   |   |   |   |
| Loss & LAE ratio                                            | 64.2 |  | % | 66.9 |  | % | 2.7 |  | pts |
| Acquisition expense ratio                                       | 18.4 |  |   | 18.2 |  |   | (0.2 | ) |   |
| Underwriting expense ratio                                      | 18.9 |  |   | 17.8 |  |   | (1.1 | ) |   |
| Expense ratio                                                   | 37.3 |  |   | 36.0 |  |   | (1.3 | ) |   |
| Dividend ratio                                                  | 0.4 |  |   | 0.4 |  |   | — |  |   |
| Combined ratio                                                  | 101.9 |  | % | 103.3 |  | % | 1.4 |  |   |
| Combined ratio excluding catastrophes and development           | 99.3 |  | % | 100.5 |  | % | 1.2 |  | pts |
|                                                            |   |   |   |   |   |   |
| Net accident year catastrophe losses incurred                   | $ | 28 |  |   | $ | 19 |  |   |  |  |   |
| Effect on loss & LAE ratio                                  | 4.1 |  | % | 2.8 |  | % | (1.3 | ) | pts |
|                                                            |   |   |   |   |   |   |
| Net prior year development and other: (favorable) / unfavorable | $ | (11 | ) |   | $ | — |  |   |  |  |   |
| Effect on loss & LAE ratio                                  | (1.5 | ) | % | — |  | % | 1.5 |  | pts |
|                                                            |   |   |   |   |   |   |
| Rate                                                            | — |  | % | 3 |  | % | (3 | ) | pts |
| Retention                                                       | 83 |  |   | 76 |  |   | 7 |  |   |
| New business                                                    | $ | 137 |  |   | $ | 138 |  |   | (1 | ) | % |

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |
| Three months ended March 31                                     |   |   |
| (In millions)                                                   | 2016 |   | 2015 |   | Change |   |
| Gross written premiums                                          | $ | 263 |  |   | $ | 261 |  |   | 1 |  | % |
| Net written premiums                                            | 236 |  |   | 212 |  |   | 11 |  |   |
|                                                            |   |   |   |   |   |   |
| Net earned premiums                                             | 198 |  |   | 191 |  |   | 4 |  |   |
| Net investment income                                           | 12 |  |   | 14 |  |   |  |  |   |
| Other revenues                                                  | 1 |  |   | — |  |   |  |  |   |
| Total operating revenues                                        | 211 |  |   | 205 |  |   | 3 |  |   |
| Insurance claims and policyholders' benefits                    | 121 |  |   | 116 |  |   |  |  |   |
| Amortization of deferred acquisition costs                      | 47 |  |   | 35 |  |   |  |  |   |
| Other insurance related expenses                                | 28 |  |   | 37 |  |   |  |  |   |
| Other expenses                                                  | 9 |  |   | 5 |  |   |  |  |   |
| Total claims, benefits and expenses                             | 205 |  |   | 193 |  |   | (6 | ) |   |
| Operating income (loss) before income tax                       | 6 |  |   | 12 |  |   |  |  |   |
| Income tax (expense) benefit on operating income (loss)         | — |  |   | (3 | ) |   |  |  |   |
| Net operating income (loss)                                     | $ | 6 |  |   | $ | 9 |  |   | (33 | ) | % |
|                                                            |   |   |   |   |   |   |
| Other Performance Metrics                                       |   |   |   |   |   |   |
| Underwriting gain (loss)                                        | $ | 2 |  |   | $ | 3 |  |   | (33 | ) | % |
|                                                            |   |   |   |   |   |   |
| Loss & LAE ratio                                            | 61.2 |  | % | 60.7 |  | % | (0.5 | ) | pts |
| Acquisition expense ratio                                       | 21.0 |  |   | 21.6 |  |   | 0.6 |  |   |
| Underwriting expense ratio                                      | 16.8 |  |   | 16.0 |  |   | (0.8 | ) |   |
| Expense ratio                                                   | 37.8 |  |   | 37.6 |  |   | (0.2 | ) |   |
| Dividend ratio                                                  | — |  |   | — |  |   | — |  |   |
| Combined ratio                                                  | 99.0 |  | % | 98.3 |  | % | (0.7 | ) |   |
| Combined ratio excluding catastrophes and development           | 99.3 |  | % | 94.3 |  | % | (5.0 | ) | pts |
|                                                            |   |   |   |   |   |   |
| Net accident year catastrophe losses incurred                   | $ | 4 |  |   | $ | 3 |  |   |  |  |   |
| Effect on loss & LAE ratio                                  | 2.1 |  | % | 1.3 |  | % | (0.8 | ) | pts |
|                                                            |   |   |   |   |   |   |
| Net prior year development and other: (favorable) / unfavorable | $ | (5 | ) |   | $ | 12 |  |   |  |  |   |
| Effect on loss & LAE ratio                                  | (2.4 | ) | % | 2.7 |  | % | 5.1 |  | pts |
|                                                            |   |   |   |   |   |   |
| Rate                                                            | — |  | % | (1 | ) | % | 1 |  | pts |
| Retention                                                       | 77 |  |   | 78 |  |   | (1 | ) |   |
| New business (a)                                                | 60 |  |   | 35 |  |   | 71 |  | % |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |
| Three months ended March 31                             |   |   |
| (In millions)                                           | 2016 |   | 2015 |   | Change |   |
| Net earned premiums                                     | $ | 131 |  |   | $ | 138 |  |   | (5 | ) | % |
| Net investment income                                   | 187 |  |   | 179 |  |   |  |  |   |
| Other revenues                                          | — |  |   | 9 |  |   |  |  |   |
| Total operating revenues                                | 318 |  |   | 326 |  |   | (2 | ) |   |
| Insurance claims and policyholders' benefits            | 323 |  |   | 340 |  |   |  |  |   |
| Amortization of deferred acquisition costs              | — |  |   | 7 |  |   |  |  |   |
| Other insurance related expenses                        | 33 |  |   | 35 |  |   |  |  |   |
| Other expenses                                          | 3 |  |   | 4 |  |   |  |  |   |
| Total claims, benefits and expenses                     | 359 |  |   | 386 |  |   | 7 |  |   |
| Operating income (loss) before income tax               | (41 | ) |   | (60 | ) |   |  |  |   |
| Income tax (expense) benefit on operating income (loss) | 39 |  |   | 43 |  |   |  |  |   |
| Net operating income (loss)                             | $ | (2 | ) |   | $ | (17 | ) |   | 88 |  | % |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |
| Three months ended March 31                             |   |   |
| (In millions)                                           | 2016 |   | 2015 |   | Change |   |
| Net earned premiums                                     | $ | — |  |   | $ | — |  |   |  |  |   |
| Net investment income                                   | 3 |  |   | 6 |  |   |  |  |   |
| Other revenues                                          | 3 |  |   | 1 |  |   |  |  |   |
| Total operating revenues                                | 6 |  |   | 7 |  |   | (14 | ) | % |
| Insurance claims and policyholders' benefits            | 128 |  |   | (4 | ) |   |  |  |   |
| Amortization of deferred acquisition costs              | — |  |   | — |  |   |  |  |   |
| Other insurance related expenses                        | — |  |   | — |  |   |  |  |   |
| Other expenses                                          | 54 |  |   | 45 |  |   |  |  |   |
| Total claims, benefits and expenses                     | 182 |  |   | 41 |  |   | N/M |  |   |
| Operating income (loss) before income tax               | (176 | ) |   | (34 | ) |   |  |  |   |
| Income tax (expense) benefit on operating income (loss) | 62 |  |   | 12 |  |   |  |  |   |
| Net operating income (loss)                             | $ | (114 | ) |   | $ | (22 | ) |   | N/M |  | % |

----

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                              | March 31, 2016 |  | December 31, 2015 |
| (In millions)                                                     | Carrying Value |   | Net Unrealized Gains (Losses) |   | Carrying Value |   | Net Unrealized Gains (Losses) |
| Fixed maturity securities:                                        |   |   |   |   |   |   |   |
| Corporate and other bonds                                         | $ | 18,109 |  |   | $ | 1,031 |  |   | $ | 17,760 |  |   | $ | 677 |  |
| States, municipalities and political subdivisions:                |   |   |   |   |   |   |   |
| Tax-exempt                                                        | 10,251 |  |   | 1,244 |  |   | 10,114 |  |   | 1,076 |  |
| Taxable                                                           | 2,928 |  |   | 457 |  |   | 3,060 |  |   | 369 |  |
| Total states, municipalities and political subdivisions           | 13,179 |  |   | 1,701 |  |   | 13,174 |  |   | 1,445 |  |
| Asset-backed:                                                     |   |   |   |   |   |   |   |
| RMBS                                                              | 5,206 |  |   | 178 |  |   | 5,072 |  |   | 137 |  |
| CMBS                                                              | 2,199 |  |   | 62 |  |   | 2,197 |  |   | 43 |  |
| Other ABS                                                         | 921 |  |   | (16 | ) |   | 921 |  |   | (2 | ) |
| Total asset-backed                                                | 8,326 |  |   | 224 |  |   | 8,190 |  |   | 178 |  |
| U.S. Treasury and obligations of government-sponsored enterprises | 140 |  |   | 7 |  |   | 67 |  |   | 5 |  |
| Foreign government                                                | 463 |  |   | 16 |  |   | 346 |  |   | 12 |  |
| Redeemable preferred stock                                        | 35 |  |   | 2 |  |   | 35 |  |   | 2 |  |
| Total fixed maturity securities                                   | 40,252 |  |   | 2,981 |  |   | 39,572 |  |   | 2,319 |  |
| Equities                                                          | 189 |  |   | 7 |  |   | 197 |  |   | 6 |  |
| Limited partnership investments                                   | 2,562 |  |   | — |  |   | 2,548 |  |   | — |  |
| Other invested assets                                             | 45 |  |   | — |  |   | 44 |  |   | — |  |
| Mortgage loans                                                    | 675 |  |   | — |  |   | 678 |  |   | — |  |
| Short term investments                                            | 1,648 |  |   | 1 |  |   | 1,660 |  |   | — |  |
| Total investments                                                 | $ | 45,371 |  |   | $ | 2,989 |  |   | $ | 44,699 |  |   | $ | 2,325 |  |
|                                                              |   |   |   |   |   |   |   |
| Net receivable/(payable) on investment activity                   | $ | (73 | ) |   |   |   | $ | 82 |  |   |   |
|                                                              |   |   |   |   |   |   |   |
| Effective portfolio duration (in years)                           | 6.0 |  |   |   |   | 6.2 |  |   |   |
| Weighted average rating of fixed maturity securities              | A |  |   |   |   | A |  |   |   |

----

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                              | March 31, 2016 |   | December 31, 2015 |
| (In millions)                                                     | Carrying Value |   | Net Unrealized Gains (Losses) |   | Carrying Value |   | Net Unrealized Gains (Losses) |
| Fixed maturity securities:                                        |   |   |   |   |   |   |   |
| Corporate and other bonds                                         | $ | 12,857 |  |   | $ | 316 |  |   | $ | 12,594 |  |   | $ | 96 |  |
| States, municipalities and political subdivisions:                |   |   |   |   |   |   |   |
| Tax-exempt                                                        | 2,427 |  |   | 156 |  |   | 2,441 |  |   | 133 |  |
| Taxable                                                           | 1,388 |  |   | 166 |  |   | 1,579 |  |   | 132 |  |
| Total states, municipalities and political subdivisions           | 3,815 |  |   | 322 |  |   | 4,020 |  |   | 265 |  |
| Asset-backed:                                                     |   |   |   |   |   |   |   |
| RMBS                                                              | 4,926 |  |   | 172 |  |   | 4,828 |  |   | 131 |  |
| CMBS                                                              | 2,041 |  |   | 55 |  |   | 2,038 |  |   | 37 |  |
| Other ABS                                                         | 843 |  |   | (13 | ) |   | 837 |  |   | (1 | ) |
| Total asset-backed                                                | 7,810 |  |   | 214 |  |   | 7,703 |  |   | 167 |  |
| U.S. Treasury and obligations of government-sponsored enterprises | 115 |  |   | 2 |  |   | 42 |  |   | — |  |
| Foreign government                                                | 463 |  |   | 16 |  |   | 346 |  |   | 12 |  |
| Redeemable preferred stock                                        | 13 |  |   | 1 |  |   | 13 |  |   | 1 |  |
| Total fixed maturity securities                                   | 25,073 |  |   | 871 |  |   | 24,718 |  |   | 541 |  |
| Equities                                                          | 81 |  |   | 4 |  |   | 87 |  |   | 1 |  |
| Limited partnership investments                                   | 2,562 |  |   | — |  |   | 2,548 |  |   | — |  |
| Other invested assets                                             | 45 |  |   | — |  |   | 44 |  |   | — |  |
| Mortgage loans                                                    | 617 |  |   | — |  |   | 622 |  |   | — |  |
| Short term investments                                            | 1,538 |  |   | 1 |  |   | 1,513 |  |   | — |  |
| Total investments                                                 | $ | 29,916 |  |   | $ | 876 |  |   | $ | 29,532 |  |   | $ | 542 |  |
|                                                              |   |   |   |   |   |   |   |
| Net receivable/(payable) on investment activity                   | $ | (128 | ) |   |   |   | $ | 204 |  |   |   |
|                                                              |   |   |   |   |   |   |   |
| Effective portfolio duration (in years)                           | 4.1 |  |   |   |   | 4.3 |  |   |   |
| Weighted average rating of fixed maturity securities              | A |  |   |   |   | A |  |   |   |

----

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                              | March 31, 2016 |   | December 31, 2015 |
| (In millions)                                                     | Carrying Value |   | Net Unrealized Gains (Losses) |   | Carrying Value |   | Net Unrealized Gains (Losses) |
| Fixed maturity securities:                                        |   |   |   |   |   |   |   |
| Corporate and other bonds                                         | $ | 5,252 |  |   | $ | 715 |  |   | $ | 5,166 |  |   | $ | 581 |  |
| States, municipalities and political subdivisions:                |   |   |   |   |   |   |   |
| Tax-exempt                                                        | 7,824 |  |   | 1,088 |  |   | 7,673 |  |   | 943 |  |
| Taxable                                                           | 1,540 |  |   | 291 |  |   | 1,481 |  |   | 237 |  |
| Total states, municipalities and political subdivisions           | 9,364 |  |   | 1,379 |  |   | 9,154 |  |   | 1,180 |  |
| Asset-backed:                                                     |   |   |   |   |   |   |   |
| RMBS                                                              | 280 |  |   | 6 |  |   | 244 |  |   | 6 |  |
| CMBS                                                              | 158 |  |   | 7 |  |   | 159 |  |   | 6 |  |
| Other ABS                                                         | 78 |  |   | (3 | ) |   | 84 |  |   | (1 | ) |
| Total asset-backed                                                | 516 |  |   | 10 |  |   | 487 |  |   | 11 |  |
| U.S. Treasury and obligations of government-sponsored enterprises | 25 |  |   | 5 |  |   | 25 |  |   | 5 |  |
| Foreign government                                                | — |  |   | — |  |   | — |  |   | — |  |
| Redeemable preferred stock                                        | 22 |  |   | 1 |  |   | 22 |  |   | 1 |  |
| Total fixed maturity securities                                   | 15,179 |  |   | 2,110 |  |   | 14,854 |  |   | 1,778 |  |
| Equities                                                          | 108 |  |   | 3 |  |   | 110 |  |   | 5 |  |
| Limited partnership investments                                   | — |  |   | — |  |   | — |  |   | — |  |
| Other invested assets                                             | — |  |   | — |  |   | — |  |   | — |  |
| Mortgage loans                                                    | 58 |  |   | — |  |   | 56 |  |   | — |  |
| Short term investments                                            | 110 |  |   | — |  |   | 147 |  |   | — |  |
| Total investments                                                 | $ | 15,455 |  |   | $ | 2,113 |  |   | $ | 15,167 |  |   | $ | 1,783 |  |
|                                                              |   |   |   |   |   |   |   |
| Net receivable/(payable) on investment activity                   | $ | 55 |  |   |   |   | $ | (122 | ) |   |   |
|                                                              |   |   |   |   |   |   |   |
| Effective portfolio duration (in years)                           | 9.2 |  |   |   |   | 9.6 |  |   |   |
| Weighted average rating of fixed maturity securities              | A |  |   |   |   | A |  |   |   |

----

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| March 31, 2016                                               | U.S. Government, Government agencies and Government-sponsored enterprises |   | AAA |   | AA |   | A |   | BBB |   | Non-investment grade |   | Total |
| (In millions)                                                     | Fair Value |   | Net Unrealized Gains (Losses) |   | Fair Value |   | Net Unrealized Gains (Losses) |   | Fair Value |   | Net Unrealized Gains (Losses) |   | Fair Value |   | Net Unrealized Gains (Losses) |   | Fair Value |   | Net Unrealized Gains (Losses) |   | Fair Value |   | Net Unrealized Gains (Losses) |   | Fair Value |   | Net Unrealized Gains (Losses) |
| Corporate and other bonds                                         | $ | — |  |   | $ | — |  |   | $ | 91 |  |   | $ | 7 |  |   | $ | 635 |  |   | $ | 39 |  |   | $ | 4,800 |  |   | $ | 484 |  |   | $ | 10,758 |  |   | $ | 555 |  |   | $ | 1,825 |  |   | $ | (54 | ) |   | $ | 18,109 |  |   | $ | 1,031 |  |
| States, municipalities and political subdivisions:                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax-exempt                                                        | — |  |   | — |  |   | 807 |  |   | 78 |  |   | 5,302 |  |   | 686 |  |   | 3,937 |  |   | 454 |  |   | 135 |  |   | 10 |  |   | 70 |  |   | 16 |  |   | 10,251 |  |   | 1,244 |  |
| Taxable                                                           | — |  |   | — |  |   | 320 |  |   | 38 |  |   | 1,932 |  |   | 298 |  |   | 604 |  |   | 120 |  |   | 29 |  |   | — |  |   | 43 |  |   | 1 |  |   | 2,928 |  |   | 457 |  |
| Total states, municipalities and political subdivisions           | — |  |   | — |  |   | 1,127 |  |   | 116 |  |   | 7,234 |  |   | 984 |  |   | 4,541 |  |   | 574 |  |   | 164 |  |   | 10 |  |   | 113 |  |   | 17 |  |   | 13,179 |  |   | 1,701 |  |
| Asset-backed:                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| RMBS                                                              | 3,980 |  |   | 146 |  |   | 102 |  |   | — |  |   | 48 |  |   | — |  |   | 112 |  |   | (1 | ) |   | 72 |  |   | 1 |  |   | 892 |  |   | 32 |  |   | 5,206 |  |   | 178 |  |
| CMBS                                                              | 57 |  |   | 1 |  |   | 511 |  |   | 13 |  |   | 451 |  |   | 24 |  |   | 353 |  |   | 17 |  |   | 574 |  |   | 7 |  |   | 253 |  |   | — |  |   | 2,199 |  |   | 62 |  |
| Other ABS                                                         | — |  |   | — |  |   | 65 |  |   | — |  |   | 17 |  |   | — |  |   | 525 |  |   | (13 | ) |   | 314 |  |   | (3 | ) |   | — |  |   | — |  |   | 921 |  |   | (16 | ) |
| Total asset-backed                                                | 4,037 |  |   | 147 |  |   | 678 |  |   | 13 |  |   | 516 |  |   | 24 |  |   | 990 |  |   | 3 |  |   | 960 |  |   | 5 |  |   | 1,145 |  |   | 32 |  |   | 8,326 |  |   | 224 |  |
| U.S. Treasury and obligations of government-sponsored enterprises | 140 |  |   | 7 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 140 |  |   | 7 |  |
| Foreign government                                                | — |  |   | — |  |   | 64 |  |   | 5 |  |   | 373 |  |   | 11 |  |   | 21 |  |   | — |  |   | 5 |  |   | — |  |   | — |  |   | — |  |   | 463 |  |   | 16 |  |
| Redeemable preferred stock                                        | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 11 |  |   | 1 |  |   | 24 |  |   | 1 |  |   | 35 |  |   | 2 |  |
| Total fixed maturity securities                                   | $ | 4,177 |  |   | $ | 154 |  |   | $ | 1,960 |  |   | $ | 141 |  |   | $ | 8,758 |  |   | $ | 1,058 |  |   | $ | 10,352 |  |   | $ | 1,061 |  |   | $ | 11,898 |  |   | $ | 571 |  |   | $ | 3,107 |  |   | $ | (4 | ) |   | $ | 40,252 |  |   | $ | 2,981 |  |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Percentage of total fixed maturity securities                     | 10 | % |   |   |   | 5 | % |   |   |   | 22 | % |   |   |   | 26 | % |   |   |   | 29 | % |   |   |   | 8 | % |   |   |   | 100 | % |   |   |

----

|                                                                               |
|-------------------------------------------------------------------------------|
|                                                                               |  |  |  |  |  |  |  |  |
| Three months ended March 31                                                   | Consolidated |   |
| (In millions)                                                                 | 2016 |   | 2015 |   |
|     Taxable fixed maturities                              | $ | 345 |  |   | $ | 342 |  |   |
|     Tax-exempt fixed maturities                           | 101 |  |   | 101 |  |   |
| Total fixed maturity securities                                               | 446 |  |   | 443 |  |   |
| Limited partnership investments                                               | (14 | ) |   | 114 |  |   |
| Other, net of investment expense                                              | 3 |  |   | 1 |  |   |
| Net investment income                                                         | $ | 435 |  |   | $ | 558 |  |   |
|                                                                          |   |   |   |   |
| Fixed maturity securities, after tax                                          | $ | 322 |  |   | $ | 318 |  |   |
| Net investment income, after tax                                              | $ | 315 |  |   | $ | 394 |  |   |
|                                                                          |   |   |   |   |
| Effective income yield for the fixed maturity securities portfolio, pretax    | 4.8 |  | % | 4.8 |  | % |
| Effective income yield for the fixed maturity securities portfolio, after tax | 3.4 |  | % | 3.4 |  | % |

|                                                                               |
|-------------------------------------------------------------------------------|
|                                                                               |  |  |  |  |  |  |  |  |
|                                                                          | Property & Casualty and Corporate & Other Non-Core |   |
| Three months ended March 31                                                   |   |
| (In millions)                                                                 | 2016 |   | 2015 |   |
|     Taxable fixed maturities                              | $ | 238 |  |   | $ | 242 |  |   |
|     Tax-exempt fixed maturities                           | 19 |  |   | 22 |  |   |
| Total fixed maturity securities                                               | 257 |  |   | 264 |  |   |
| Limited partnership investments                                               | (14 | ) |   | 114 |  |   |
| Other, net of investment expense                                              | 5 |  |   | 1 |  |   |
| Net investment income                                                         | $ | 248 |  |   | $ | 379 |  |   |
|                                                                          |   |   |   |   |
| Fixed maturity securities, after tax                                          | $ | 174 |  |   | $ | 179 |  |   |
| Net investment income, after tax                                              | $ | 168 |  |   | $ | 255 |  |   |
|                                                                          |   |   |   |   |
| Effective income yield for the fixed maturity securities portfolio, pretax    | 4.2 |  | % | 4.3 |  | % |
| Effective income yield for the fixed maturity securities portfolio, after tax | 2.9 |  | % | 2.9 |  | % |

|                                                                               |
|-------------------------------------------------------------------------------|
|                                                                               |  |  |  |  |  |  |  |  |
| Three months ended March 31                                                   | Life & Group Non-Core |   |
| (In millions)                                                                 | 2016 |   | 2015 |   |
|     Taxable fixed maturities                              | $ | 107 |  |   | $ | 100 |  |   |
|     Tax-exempt fixed maturities                           | 82 |  |   | 79 |  |   |
| Total fixed maturity securities                                               | 189 |  |   | 179 |  |   |
| Limited partnership investments                                               | — |  |   | — |  |   |
| Other, net of investment expense                                              | (2 | ) |   | — |  |   |
| Net investment income                                                         | $ | 187 |  |   | $ | 179 |  |   |
|                                                                          |   |   |   |   |
| Fixed maturity securities, after tax                                          | $ | 148 |  |   | $ | 139 |  |   |
| Net investment income, after tax                                              | $ | 147 |  |   | $ | 139 |  |   |
|                                                                          |   |   |   |   |
| Effective income yield for the fixed maturity securities portfolio, pretax    | 5.8 |  | % | 5.8 |  | % |
| Effective income yield for the fixed maturity securities portfolio, after tax | 4.5 |  | % | 4.5 |  | % |

----

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Three months ended March 31, 2016(In millions)                     | Specialty |   | Commercial |   | International |   | P&C Operations |   | Life & Group Non-Core |   | Corporate & Other Non-Core |   | Total Operations |
| Claim & claim adjustment expense reserves, beginning of period |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                                                              | $ | 6,269 |  |   | $ | 9,183 |  |   | $ | 1,347 |  |   | $ | 16,799 |  |   | $ | 3,220 |  |   | $ | 2,644 |  |   | $ | 22,663 |  |
| Ceded                                                              | 701 |  |   | 607 |  |   | 128 |  |   | 1,436 |  |   | 290 |  |   | 2,361 |  |   | 4,087 |  |
| Net                                                                | 5,568 |  |   | 8,576 |  |  | 1,219 |  |  | 15,363 |  |  | 2,930 |  |  | 283 |  |  | 18,576 |  |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net incurred claim & claim adjustment expenses                 | 390 |  |   | 441 |  |   | 121 |  |   | 952 |  |   | 274 |  |   | 1 |  |   | 1,227 |  |
| Net claim & claim adjustment expense payments                  | (394 | ) |   | (512 | ) |   | (121 | ) |   | (1,027 | ) |   | (190 | ) |   | (6 | ) |   | (1,223 | ) |
| Foreign currency translation adjustment and other                  | — |  |   | — |  |   | 31 |  |   | 31 |  |   | 7 |  |   | 1 |  |   | 39 |  |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Claim & claim adjustment expense reserves, end of period       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                                                                | 5,564 |  |   | 8,505 |  |   | 1,250 |  |   | 15,319 |  |   | 3,021 |  |   | 279 |  |   | 18,619 |  |
| Ceded                                                              | 761 |  |   | 590 |  |   | 145 |  |   | 1,496 |  |   | 290 |  |   | 2,613 |  |   | 4,399 |  |
| Gross                                                              | $ | 6,325 |  |   | $ | 9,095 |  |   | $ | 1,395 |  |   | $ | 16,815 |  |   | $ | 3,311 |  |   | $ | 2,892 |  |   | $ | 23,018 |  |

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |
| March 31, 2016             |   |   |   |   |   |
| (In millions)                   | Claim and claim adjustment expenses |   | Future policy benefits |   | Total |
| Long term care                  | $ | 2,316 |  |   | $ | 8,385 |  |   | $ | 10,701 |  |
| Structured settlement annuities | 578 |  |   | — |  |   | 578 |  |
| Other                           | 19 |  |   | — |  |   | 19 |  |
| Total                           | 2,913 |  |   | 8,385 |  |   | 11,298 |  |
| Shadow adjustments              | 108 |  |   | 1,909 |  |   | 2,017 |  |
| Ceded reserves                  | 290 |  |   | 206 |  |   | 496 |  |
| Total gross reserves            | $ | 3,311 |  |   | $ | 10,500 |  |   | $ | 13,811 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |
| December 31, 2015          |   |   |   |   |   |
| (In millions)                   | Claim and claim adjustment expenses |   | Future policy benefits |   | Total |
| Long term care                  | $ | 2,229 |  |   | $ | 8,335 |  |   | $ | 10,564 |  |
| Structured settlement annuities | 581 |  |   | — |  |   | 581 |  |
| Other                           | 21 |  |   | — |  |   | 21 |  |
| Total                           | 2,831 |  |   | 8,335 |  |   | 11,166 |  |
| Shadow adjustments              | 99 |  |   | 1,610 |  |   | 1,709 |  |
| Ceded reserves                  | 290 |  |   | 207 |  |   | 497 |  |
| Total gross reserves            | $ | 3,220 |  |   | $ | 10,152 |  |   | $ | 13,372 |  |

----

|         |                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------|
| • | Collectively, CNA Financial Corporation (CNAF) and its subsidiaries are referred to as CNA or the Company. |

|         |                                                                      |
|---------|----------------------------------------------------------------------|
| • | P&C Operations includes Specialty, Commercial and International. |

|         |                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------|
| • | Life & Group Non-Core segment primarily includes the results of long term care businesses that are in run-off. |

|         |                                                                                                                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Corporate & Other Non-Core segment primarily includes certain corporate expenses including interest on corporate debt and the results of certain property and casualty business in run-off, including CNA Re and asbestos and environmental pollution. Intersegment eliminations are also included in this segment. |

|         |                                                                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Management uses the net operating income (loss) financial measure to monitor the Company’s operations. Please refer to Note O to the Condensed Consolidated  Financial Statements within the December 31, 2015 Form 10-K for further discussion of this measure. |

|         |                                                                                                                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Management uses underwriting results to monitor insurance operations.  Underwriting results are pretax and are calculated as net earned premiums less total insurance expenses, which includes insurance claims and policyholders' benefits, amortization of deferred acquisition costs and other insurance related expenses. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In the evaluation of the results of Specialty, Commercial and International, management uses the loss ratio, the expense ratio, the dividend ratio and the combined ratio.  These ratios are calculated using financial results prepared in accordance with accounting principles generally accepted in the United States of America.  The loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums.  The expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums.  The dividend ratio is the ratio of policyholders' dividends incurred to net earned premiums.  The combined ratio is the sum of the loss, expense and dividend ratios.  In addition, management also utilizes rate, retention and new business in evaluating operating trends.  Rate represents the average change in price on policies that renew excluding exposure change.  Retention represents the percentage of premium dollars renewed in comparison to the expiring premium dollars from policies available to renew.  New business represents premiums from policies written with new customers and additional policies written with existing customers. |

|         |                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Pretax net prior year development and other includes the effects of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The majority of our limited partnership investments employ hedge fund strategies that generate returns primarily through investing in marketable securities in the public fixed income and equity markets. While the Company generally does not invest in highly leveraged partnerships, there are risks which may result in losses due to short-selling, derivatives or other speculative investment practices. The use of leverage increases volatility generated by the underlying investment strategies. |

|         |                                                     |
|---------|-----------------------------------------------------|
| • | Certain immaterial differences are due to rounding. |

|         |                      |
|---------|----------------------|
| • | N/M = Not Meaningful |