===============================================================================

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


                      -------------------------------------



                                    FORM 8-K




                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15 (d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934



Date of report (Date of earliest event reported)        August 5, 1998


                      -------------------------------------



                            CNA FINANCIAL CORPORATION





               (Exact Name of Registrant as Specified in Charter)

          Delaware                   1-5823                 36-6169860
(State or Other Jurisdiction       (Commission            (IRS Employer
      of Incorporation)           File Number)         Identification No.)

      CNA Plaza, Chicago, Illinois                            60685
(Address of Principal Executive Offices)                   (Zip Code)

  Registrant's telephone number, including area code     (312) 822-5000

          (Former Name or Former Address, if Changed Since Last Report)



===============================================================================
<PAGE>

Item 5.           Other Events


   CNA Reports Second Quarter Earnings and Estimate of Reorganization Charges

              Board of Directors Approves Share Repurchase Program



CHICAGO,  August 5, 1998 -- CNA Financial  Corporation (NYSE: CNA) announced its
earnings  for the second  quarter and an estimated  range of charges  related to
reorganization activities in several of its businesses.

                Second Quarter Results and Six-Month Comparisons

Net income for the second quarter of 1998 was $210 million,  or $1.12 per share,
compared  with $235 million,  or $1.26 per share,  for the same quarter in 1997.
Excluding net realized  investment  gains and losses,  net income for the second
quarter of 1998 amounted to $64 million, or $0.33 per share,  compared with $126
million,  or $0.67  per  share,  for the same  quarter  in  1997.  Net  realized
investment gains for the second quarter of 1998 were $146 million,  or $0.79 per
share, compared with $109 million, or $0.59 per share, for the comparable period
in 1997.  (The  company does not have any  dilutive  instruments  related to its
common  shares.   Accordingly,   basic  and  diluted  earnings  are  the  same.)
Catastrophe  losses had an  unfavorable  impact on earnings of $82 million after
tax,  or $0.44 per share,  for the  second  quarter  of 1998 as  compared  to an
unfavorable impact of $29 million, or $0.16 per share, for the second quarter of
1997.  Consolidated  revenues  for the second  quarter of 1998 were $4.4 billion
compared with $4.2 billion for the second quarter of 1997.

"CNA's  results  reflect  continued  soft market  conditions,  as well as higher
catastrophe losses compared to last year," said CNA Chairman and Chief Executive
Officer Dennis H.  Chookaszian.  "As a market leader in many lines of insurance,
CNA is taking  decisive  action  to  increase  both  customer  satisfaction  and
shareholder value as we continue to face intense price competition."

Net  income  for the first six  months  of 1998 was $443  million,  or $2.37 per
share,  compared with $412 million, or $2.21 per share, for the first six months
of 1997.  Excluding net realized investment gains and losses, net income for the
first six months of 1998 amounted to $181 million, or $0.96 per

                                     -more-
<PAGE>

                                       -2-

share,  compared with $262 million, or $1.40 per share, for the first six months
of 1997. Net realized  investment  gains were $262 million,  or $1.41 per share,
for the first half of 1998,  compared with net realized investment gains of $150
million,  or $0.81 per share,  for the same period in 1997.  Catastrophe  losses
were $98  million  after tax,  or $0.53 per  share,  for the first six months of
1998, as compared to $49 million,  or $0.27 per share, for the comparable period
of 1997.

Consolidated  revenues  for the  first six  months  of 1998  were $8.8  billion,
compared to $8.4 billion for the first six months of 1997.

                        Estimated Reorganization Charges

Separately, CNA announced current estimates of the financial implications of its
initiatives to achieve world-class performance. The announcement encompasses all
of its 29 strategic  business units (SBUs),  as well as corporate support areas.
The company anticipates  finalizing its plan by year-end 1998 and estimates that
it  will  record  a  pre-tax   charge  of  $100  million  to  $140  million  for
restructuring  costs.  Also, over the next 12 to 18 months,  the company expects
additional  pre-tax  transition costs of $200 million to $260 million related to
the  restructuring.  The pre-tax  impact on  third-quarter  earnings  from these
reorganization charges is estimated to be $175 million to $260 million.

"World-class  companies  continually  innovate  and change.  CNA is committed to
providing  quality  products  and  service,  and  being a leader  in our  chosen
markets," said  Chookaszian.  "Most of our SBUs are market leaders today and are
growing.  Over the past three years, CNA has achieved record shareholder equity,
net income,  and premium  revenue,"  Chookaszian  said. "We are building an even
stronger future with our customers and distribution  partners from this position
of strength."

Among the actions expected as part of the organizational changes are


    *     closing several facilities
    *     consolidating certain processing locations
    *     reducing CNA's current workforce of approximately 24,000 employees by
          about 10 percent
    *     enhancing computer systems

While the company has not finalized its analysis of  anticipated  costs savings,
it estimates that its world-class  initiatives,  which include the restructuring
plan as well as  revenue  growth  and  operating  efficiencies,  will  result in
anticipated  reductions  of  approximately  200 basis  points  in the  company's
expense ratio, and savings of  approximately  $300 million to $350 million on an
annualized basis. The company expects a portion of the anticipated  savings will
be realized  beginning  in the latter part of 1998 and to achieve  this  reduced
expense level within 18 months.

                                     -more-
<PAGE>
                                       -3-

"We  regret  the  impact  that job  losses  will have on our  employees  who are
affected,"  Chookaszian said. "We are committed to treating them  professionally
during this transition."

CNA Financial Corp.  Board Chairman Edward J. Noha said, "Over the past 20 years
CNA has  responded  successfully  to  significant  challenges  in the  insurance
marketplace while maintaining an unshakable commitment to financial strength."

                        Share Repurchase Program Approved

The board of directors has today approved a plan to purchase,  in open market or
privately  negotiated  transactions,  its outstanding  common stock from time to
time as market conditions warrant.

"The share  repurchase  program  demonstrates  our confidence in CNA's long term
prospects and is consistent with our efforts to enhance shareholder value," said
Chookaszian.

CNA ranks  among the top 10 U.S.  insurance  groups  with 1997  revenues  of $17
billion.  Headquartered in Chicago, CNA is a leading multiline insurer,  serving
individuals  and  businesses  with a  broad  range  of  insurance  products  and
insurance-related  services.  CNA products  and  services  are marketed  through
multiple distribution channels,  including independent agents, brokers,  general
agents and direct sales.  Since 1897, CNA has built on a foundation of financial
strength,  stability and commitment to customers and business  partners.  CNA is
the registered service mark and trade name of CNA Financial Corporation.  Shares
of CNA Financial Corporation have traded at a split-adjusted high of $53.260 and
a low of $36.460 for the 52-week period ending August 4, 1998.

                            FORWARD LOOKING STATEMENT

The statements  contained in this press release which are not  historical  facts
are forward-looking statements that involve risks and uncertainties,  including,
but not limited to, product and policy demand and market  responses,  the effect
of  economic  conditions,  the  impact of  competitive  products,  policies  and
pricing,  product and policy  development,  regulatory  changes and  conditions,
rating agency  policies and  practices,  development of claims and the effect on
loss  reserves,  the  performance  of reinsurance  companies  under  reinsurance
contracts with the Company,  investment  portfolio  developments and reaction to
market  conditions,  the results of  financing  efforts,  the actual  closing of
contemplated  transactions  and  agreements  and  other  risks  detailed  in the
Company's  Securities and Exchange Commission filings. No assurance can be given
that the actual  results of operations  and financial  condition will conform to
the forward-looking statements contained herein.

                                      # # #

                                TABLES TO FOLLOW

NOTE: A conference  call for the investment  community will be held from 3:00 to
3:30 p.m.  Eastern  Daylight Time today.  On the conference  call will be Dennis
Chookaszian,  chairman and CEO of CNA, and W. James MacGinnitie, chief financial
officer of CNA.  Participants can access the call by dialing  800-754-1053.  The
call  is  available  to the  media,  but  questions  will be  restricted  to the
investment  community.  A taped replay of the call will be available,  beginning
one hour after the call ends, until 6:00 p.m. Eastern Daylight Time on Thursday,
August 6, 1998, by dialing 888-893-5820.


<PAGE>
                            CNA FINANCIAL CORPORATION
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                               1998                     1997
                                                     ------------------------   ---------------------------
                                                        In       Earnings          In           Earnings
(In millions of dollars, except per share data)      Millions   Per Share       Millions       Per Share
-----------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED JUNE 30
<S>                                                <C>          <C>            <C>                <C>   
Revenues.......................................... $   4,430         -         $   4,243              -
Net Income Excluding Net Realized
  Investment Gains/Losses......................... $      64     $  0.33       $     126     $      0.67
Net Realized Investment Gains ....................       146        0.79             109            0.59
                                                     -------   ---------
                                                     -------                  ------------   -------------
Net Income........................................ $     210     $  1.12       $     235     $      1.26
                                                     -------   ---------      ------------   -------------

SIX MONTHS ENDED JUNE 30
Revenues.........................................  $   8,757         -         $   8,375           -
Net Income Excluding Net Realized
  Investment Gains/Losses........................  $     181     $  0.96       $     262     $      1.40
Net Realized Investment Gains ...................        262        1.41             150            0.81
                                                     -------   ---------      ----------    -------------
Net Income.......................................  $     443     $  2.37       $     412     $      2.21
                                                     -------   ---------      ----------    -------------
-----------------------------------------------------------------------------------------------------------
FINANCIAL POSITION                                      JUNE 30              DECEMBER 31
(In millions of dollars, except per share data)           1998                  1997
-----------------------------------------------------------------------------------------------------------
<S>                                                <C>                 <C>           
Stockholders' Equity.............................. $   8,787           $        8,309
Net Unrealized Appreciation
     Included in Stockholders'  Equity............       627                      589
Book Value per Common Share.......................     46.59                    44.01
Weighted Average Outstanding Shares of 
     Common Stock.................................     185.4                    185.4
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
SUPPLEMENTAL FINANCIAL DATA                               SECOND QUARTER            SIX MONTHS
PERIOD ENDED ENDED JUNE 30                               1998        1997       1998      1997
(In millions of dollars)
--------------------------------------------------------------------------------------------------
NET INCOME (EXCLUDING NET REALIZED
 INVESTMENT GAINS/LOSSES):
<S>                                                   <C>          <C>       <C>       <C>  
Property and Casualty................................ $   74       $  125    $  200    $ 264
Life.................................................     20           24        38       47
                                                       ------      ------      -----    -----
  Total Insurance.....................................    94          149       238      311
Interest Expense and Other............................   (30)         (23)      (57)     (49)
                                                       ======      ======      =====    =====
                                                      $   64       $  126    $  181    $ 262
                                                       ======      ======      =====    =====
REALIZED INVESTMENT GAINS (LOSSES),
 NET OF TAX AND POLICYHOLDERS' INTEREST:
Property and Casualty...............................  $ 122        $   82    $  208    $  94
Life................................................     25            26        55       44
                                                       ------      ------      -----    -----
  Total Insurance...................................    147           108       263      138
Other...............................................     (1)            1        (1)      12
                                                       ======      ======      =====    =====
                                                      $ 146        $  109    $  262    $ 150
                                                       ======      ======      =====    =====
--------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                            CNA FINANCIAL CORPORATION

                      STATEMENT OF CONSOLIDATED OPERATIONS

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
PERIOD ENDED JUNE 30                                  SECOND QUARTER    SIX MONTHS
                                                      1998     1997    1998     1997
(In millions of dollars, except per share data)
--------------------------------------------------------------------------------------
Revenues:
<S>                                               <C>      <C>       <C>     <C>      
  Premiums........................................ $ 3,467  $ 3,348   $ 6,835 $  6,695
  Net investment income...........................     558      547     1,120    1,111
  Realized investment gains ......................     232      172       415      238
  Other...........................................     172      176       387      331
                                                   -------  --------   ------ --------
                                                     4,429    4,243     8,757    8,375
                                                   -------  --------   ------ --------
Benefits and expenses:
  Insurance claims and policyholders' benefits....   2,937    2,860     5,787    5,752
  Other operating expenses........................   1,208    1,041     2,355    2,053
                                                   -------  --------   ------ --------
                                                     4,145    3,901     8,142    7,805
                                                   -------  --------   ------ --------
    Income before income tax......................     284      342       615      570
Income tax expense................................      74      107       172      158
                                                   -------  -------    ------ --------
    Net income                                      $  210  $   235   $   443 $    412
======================================================================================

EARNINGS PER SHARE
Net income .......................................  $ 1.12  $  1.26   $  2.37 $   2.21
                                                     ======  =======   ======  =======

Weighted average outstanding shares of
common stock (in millions of shares)..............    185.4   185.4     185.4    185.4
======================================================================================
</TABLE>
<PAGE>

                            CNA FINANCIAL CORPORATION

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
SUPPLEMENTAL STATUTORY DATA - OPERATIONS                SECOND QUARTER         SIX MONTHS
PERIOD ENDED JUNE 30                                   1998       1997      1998        1997
(In millions of dollars, except ratios)
-----------------------------------------------------------------------------------------------
 PROPERTY/CASUALTY COMPANIES:
<S>                                                  <C>        <C>         <C>      <C>      
   Premiums written............................      $ 2,846    $ 2,834     $ 5,818  $   5,506
   Premiums earned.............................        2,638      2,565       5,189      5,031
   Underwriting loss...........................         (349)      (308)       (687)      (660)
   Investment income...........................          420        444         845        872

   Trade ratios:
    Loss.......................................         79.1%      78.6%      78.5%      79.0%
    Combined (before policyholder dividends)...        109.6%     107.7%     108.7%     109.1%
    Dividends to policyholders.................          1.0%       0.7%       0.9%       0.9%


LIFE COMPANIES:
    Premium income.............................          876         890     1,777      1,849

CNA INSURANCE NET PREMIUM VOLUME
--------------------------------
Property/Casualty:
   Commercial..................................      $ 2,298    $  2,502  $  4,698   $  4,657
   Personal....................................          479         478       988        936
   Involuntary Risks...........................           69        (146)      132        (87)

Life:
   Individual..................................          197         218       429        449
   Group.......................................          679         672     1,348      1,400
                                                    --------   --------- ---------  ---------
                                                     $ 3,722    $  3,724  $  7,595   $  7,355
                                                    ========   ========= =========  =========
-----------------------------------------------------------------------------------------------


-------------------------------------------------------------------------------

SUPPLEMENTAL STATUTORY DATA - FINANCIAL POSITION         JUNE 30  DECEMBER 31
(In millions of dollars, except ratios)                    1998       1997
-------------------------------------------------------------------------------
PROPERTY/CASUALTY COMPANIES:
   Estimated statutory surplus.........................  $  7,019   $  7,123
   Estimated written to surplus ratio..................       1.5        1.4

   Claim and claim expense reserves....................  $ 24,164   $ 24,088
   Ratio of reserves to twelve months premium
     revenue...........................................       2.4        2.4


LIFE COMPANIES:
   Statutory surplus...................................  $  1,281   $  1,224
   Life insurance in force.............................   351,347    311,598

-------------------------------------------------------------------------------
</TABLE>
<PAGE>




                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                            CNA FINANCIAL CORPORATION


Date:   August 6, 1998                          By:  S\W. JAMES MACGINNITIE
        --------------                               ---------------------
                                                     W. James MacGinnitie
                                                     Senior Vice President and
                                                     Chief Financial Officer