##### Table of Contents



UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM
10-K/A
 AMENDMENT NO. 1 TO FORM 10-K
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2007
  o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission File Number 1-5823
 CNA FINANCIAL CORPORATION
 (Exact name of registrant as specified in its charter)
 Delaware
    
    36-6169860(State or other jurisdiction of incorporation or organization)
    
    (I.R.S. Employer Identification No.)
 333 S. Wabash
    
    60604Chicago, Illinois(Address of principal executive
offices)
    
    (Zip Code)
 (312) 822-5000
(Registrants telephone number, including area code)
 
  Name
of each exchange onTitle
of each class
    

which registeredCommon Stock 
with a par value 
of $2.50 per share
    

New
York Stock Exchange
Chicago Stock Exchange
 Securities
registered pursuant to Section 12(g) of the Act: None
 
 þ o
 o þ
 þ o
 þ
  Large accelerated filer
þ
    
    Accelerated filer
o
    
    Non-accelerated filer  o(Do not check if a smaller reporting company)
    
    Smaller reporting company  o
 o þ
  DOCUMENTS INCORPORATED BY REFERENCE:




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TABLE OF CONTENTS  PART IITEM 1. BUSINESSSIGNATURESCertificationCertificationCertificationCertification    Table of Contents  Explanatory Note
  2




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##### Table of Contents



PART I
 
 ITEM 1. BUSINESS
     Competition
   th
 Regulation
    3




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##### Table of Contents



Employee Relations
   4




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##### Table of Contents



Supplementary Insurance Data
  Supplementary Insurance Data
 Years ended December 31(In millions)
    
    2007
    
    
    2006
    
    
    2005Trade Ratios  GAAP basis (a)Loss and loss adjustment expense ratio
    
    
    77.7
    %
    
    
    75.7
    %
    
    
    89.4
    %Expense ratio
    
    
    30.0
    
    
    
    30.0
    
    
    
    31.2Dividend ratio
    
    
    0.2
    
    
    
    0.3
    
    
    
    0.3Combined ratio
    
    
    107.9
    %
    
    
    106.0
    %
    
    
    120.9
    %Trade Ratios  Statutory basis (preliminary) (a)Loss and loss adjustment expense ratio
    
    
    79.8
    %
    
    
    78.7
    %
    
    
    92.2
    %Expense ratio
    
    
    30.0
    
    
    
    30.2
    
    
    
    30.0Dividend ratio
    
    
    0.3
    
    
    
    0.2
    
    
    
    0.5Combined ratio
    
    
    110.1
    %
    
    
    109.1
    %
    
    
    122.7
    %Individual Life and Group Life Insurance InforceIndividual life
    
    $
    9,204
    
    
    $
    9,866
    
    
    $
    10,711Group life
    
    
    4,886
    
    
    
    5,787
    
    
    
    9,838Total
    
    $
    14,090
    
    
    $
    15,653
    
    
    $
    20,549Other Data  Statutory basis (preliminary) (b)Property and casualty companies capital and surplus (c)
    
    $
    8,511
    
    
    $
    8,137
    
    
    $
    6,940Life companys capital and surplus
    
    
    471
    
    
    
    687
    
    
    
    627Property and casualty companies written premiums to surplus ratio
    
    
    0.8
    
    
    
    0.9
    
    
    
    1.0Life companys capital and surplus-percent to total liabilities
    
    
    28.2
    %
    
    
    38.9
    %
    
    
    33.1
    %Participating policyholders-percent of gross life insurance inforce
    
    
    4.7
    %
    
    
    4.4
    %
    
    
    3.5
    %
 
 (a)
    
    Trade ratios reflect the results of our property and casualty insurance subsidiaries. Trade
ratios are industry measures of property and casualty underwriting results. The loss and loss
adjustment expense ratio is the percentage of net incurred claim and claim adjustment expenses
and the expenses incurred related to uncollectible reinsurance receivables to net earned
premiums. The primary difference in this ratio between accounting principles generally
accepted in the United States of America (GAAP) and statutory accounting practices (SAP) is
related to the treatment of active life reserves (ALR) related to long term care insurance
products written in property and casualty insurance subsidiaries. For GAAP, ALR is classified
as claim and claim adjustment expense reserves whereas for SAP, ALR is classified as unearned
premium reserves. The expense ratio, using amounts determined in accordance with GAAP, is the
percentage of underwriting and acquisition expenses (including the amortization of deferred
acquisition expenses) to net earned premiums. The expense ratio, using amounts determined in
accordance with SAP, is the percentage of acquisition and underwriting expenses (with no
deferral of acquisition expenses) to net written premiums. The dividend ratio, using amounts
determined in accordance with GAAP, is the ratio of policyholders dividends incurred to net
earned premiums. The dividend ratio, using amounts determined in accordance with SAP, is the
ratio of policyholders dividends paid to net earned premiums. The combined ratio is the sum
of the loss and loss adjustment expense, expense and dividend
ratios.
 (b)
    
    Other data is determined in accordance with SAP. Life statutory capital and surplus as a
percent of total liabilities is determined after excluding separate account liabilities and
reclassifying the statutorily required Asset Valuation Reserve to surplus.
 (c)
    
    Surplus includes the property and casualty companies equity ownership of the life companys
capital and surplus.
 5




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##### Table of Contents



Gross Written Premiums
 Percent of TotalYears ended December 31
    
    2007

    
    2006

    
    2005California
    
    
    9.1
    %
    
    
    9.6
    %
    
    
    9.0
    %Florida
    
    
    7.3
    
    
    
    7.9
    
    
    
    7.1New York
    
    
    6.8
    
    
    
    7.3
    
    
    
    7.9Texas
    
    
    5.9
    
    
    
    5.9
    
    
    
    5.7Illinois
    
    
    3.7
    
    
    
    4.1
    
    
    
    4.2New Jersey
    
    
    3.6
    
    
    
    4.4
    
    
    
    3.8Missouri
    
    
    3.4
    
    
    
    3.0
    
    
    
    2.8Pennsylvania
    
    
    3.2
    
    
    
    3.4
    
    
    
    4.2Massachusetts
    
    
    2.3
    
    
    
    2.4
    
    
    
    3.3All other states, countries or political subdivisions (a)
    
    
    54.7
    
    
    
    52.0
    
    
    
    52.0Total
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %
 
 (a)
    
    No other individual state, country or political subdivision accounts for more than 3.0% of
gross written premiums.  Property and Casualty Claim and Claim Adjustment Expenses
   6




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##### Table of Contents



Schedule of Loss Reserve Development
 Calendar Year Ended(In millions)
    
    1997
    
    
    1998
    
    
    1999 (a)
    
    
    2000
    
    
    2001 (b)
    
    

2002
(c)
    
    
    2003
    
    
    2004
    
    
    2005
    
    
    2006
    
    
    2007Originally reported gross
reserves for unpaid claim
and claim adjustment
expenses
    
    $
    28,731
    
    
    $
    28,506
    
    
    $
    26,850
    
    
    $
    26,510
    
    
    $
    29,649
    
    
    $
    25,719
    
    
    $
    31,284
    
    
    $
    31,204
    
    
    $
    30,694
    
    
    $
    29,459
    
    
    $
    28,415Originally reported ceded
recoverable
    
    
    5,056
    
    
    
    5,182
    
    
    
    6,091
    
    
    
    7,333
    
    
    
    11,703
    
    
    
    10,490
    
    
    
    13,847
    
    
    
    13,682
    
    
    
    10,438
    
    
    
    8,078
    
    
    
    6,945Originally reported net
reserves for unpaid claim
and claim adjustment
expenses
    
    $
    23,675
    
    
    $
    23,324
    
    
    $
    20,759
    
    
    $
    19,177
    
    
    $
    17,946
    
    
    $
    15,229
    
    
    $
    17,437
    
    
    $
    17,522
    
    
    $
    20,256
    
    
    $
    21,381
    
    
    $
    21,470Cumulative net paid as of:One year later
    
    $
    5,954
    
    
    $
    7,321
    
    
    $
    6,547
    
    
    $
    7,686
    
    
    $
    5,981
    
    
    $
    5,373
    
    
    $
    4,382
    
    
    $
    2,651
    
    
    $
    3,442
    
    
    $
    4,436
    
    
    $
    Two years later
    
    
    11,394
    
    
    
    12,241
    
    
    
    11,937
    
    
    
    11,992
    
    
    
    10,355
    
    
    
    8,768
    
    
    
    6,104
    
    
    
    4,963
    
    
    
    7,022
    
    
    
    
    
    
    
    Three years later
    
    
    14,423
    
    
    
    16,020
    
    
    
    15,256
    
    
    
    15,291
    
    
    
    12,954
    
    
    
    9,747
    
    
    
    7,780
    
    
    
    7,825
    
    
    
    
    
    
    
    
    
    
    
    Four years later
    
    
    17,042
    
    
    
    18,271
    
    
    
    18,151
    
    
    
    17,333
    
    
    
    13,244
    
    
    
    10,870
    
    
    
    10,085
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Five years later
    
    
    18,568
    
    
    
    20,779
    
    
    
    19,686
    
    
    
    17,775
    
    
    
    13,922
    
    
    
    12,814
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Six years later
    
    
    20,723
    
    
    
    21,970
    
    
    
    20,206
    
    
    
    18,970
    
    
    
    15,493
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Seven years later
    
    
    21,649
    
    
    
    22,564
    
    
    
    21,231
    
    
    
    20,297
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Eight years later
    
    
    22,077
    
    
    
    23,453
    
    
    
    22,373
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Nine years later
    
    
    22,800
    
    
    
    24,426
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Ten years later
    
    
    23,491
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net reserves re-estimated
as of:End of initial year
    
    $
    23,675
    
    
    $
    23,324
    
    
    $
    20,759
    
    
    $
    19,177
    
    
    $
    17,946
    
    
    $
    15,229
    
    
    $
    17,437
    
    
    $
    17,522
    
    
    $
    20,256
    
    
    $
    21,381
    
    
    $
    21,470One year later
    
    
    23,904
    
    
    
    24,306
    
    
    
    21,163
    
    
    
    21,502
    
    
    
    17,980
    
    
    
    17,650
    
    
    
    17,671
    
    
    
    18,513
    
    
    
    20,588
    
    
    
    21,601
    
    
    
    Two years later
    
    
    24,106
    
    
    
    24,134
    
    
    
    23,217
    
    
    
    21,555
    
    
    
    20,533
    
    
    
    18,248
    
    
    
    19,120
    
    
    
    19,044
    
    
    
    20,975
    
    
    
    
    
    
    
    Three years later
    
    
    23,776
    
    
    
    26,038
    
    
    
    23,081
    
    
    
    24,058
    
    
    
    21,109
    
    
    
    19,814
    
    
    
    19,760
    
    
    
    19,631
    
    
    
    
    
    
    
    
    
    
    
    Four years later
    
    
    25,067
    
    
    
    25,711
    
    
    
    25,590
    
    
    
    24,587
    
    
    
    22,547
    
    
    
    20,384
    
    
    
    20,425
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Five years later
    
    
    24,636
    
    
    
    27,754
    
    
    
    26,000
    
    
    
    25,594
    
    
    
    22,983
    
    
    
    21,076
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Six years later
    
    
    26,338
    
    
    
    28,078
    
    
    
    26,625
    
    
    
    26,023
    
    
    
    23,603
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Seven years later
    
    
    26,537
    
    
    
    28,437
    
    
    
    27,009
    
    
    
    26,585
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Eight years later
    
    
    26,770
    
    
    
    28,705
    
    
    
    27,541
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Nine years later
    
    
    26,997
    
    
    
    29,211
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Ten years later
    
    
    27,317
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total net (deficiency)
redundancy
    
    $
    (3,642
    )
    
    $
    (5,887
    )
    
    $
    (6,782
    )
    
    $
    (7,408
    )
    
    $
    (5,657
    )
    
    $
    (5,847
    )
    
    $
    (2,988
    )
    
    $
    (2,109
    )
    
    $
    (719
    )
    
    $
    (220
    )
    
    $
    Reconciliation to gross
re-estimated reserves:Net reserves re-estimated
    
    $
    27,317
    
    
    $
    29,211
    
    
    $
    27,541
    
    
    $
    26,585
    
    
    $
    23,603
    
    
    $
    21,076
    
    
    $
    20,425
    
    
    $
    19,631
    
    
    $
    20,975
    
    
    $
    21,601
    
    
    $
    Re-estimated ceded
recoverable
    
    
    7,221
    
    
    
    7,939
    
    
    
    10,283
    
    
    
    11,047
    
    
    
    16,487
    
    
    
    15,846
    
    
    
    14,257
    
    
    
    13,112
    
    
    
    10,505
    
    
    
    8,230
    
    
    
    Total gross re-estimated
reserves
    
    $
    34,538
    
    
    $
    37,150
    
    
    $
    37,824
    
    
    $
    37,632
    
    
    $
    40,090
    
    
    $
    36,922
    
    
    $
    34,682
    
    
    $
    32,743
    
    
    $
    31,480
    
    
    $
    29,831
    
    
    $
    Net (deficiency)
redundancy related to:Asbestos claims
    
    $
    (2,367
    )
    
    $
    (2,125
    )
    
    $
    (1,549
    )
    
    $
    (1,485
    )
    
    $
    (713
    )
    
    $
    (712
    )
    
    $
    (71
    )
    
    $
    (17
    )
    
    $
    (7
    )
    
    $
    (6
    )
    
    $
    Environmental claims
    
    
    (541
    )
    
    
    (533
    )
    
    
    (533
    )
    
    
    (476
    )
    
    
    (129
    )
    
    
    (123
    )
    
    
    (51
    )
    
    
    (51
    )
    
    
    (1
    )
    
    
    (1
    )
    
    
    Total asbestos and
environmental
    
    
    (2,908
    )
    
    
    (2,658
    )
    
    
    (2,082
    )
    
    
    (1,961
    )
    
    
    (842
    )
    
    
    (835
    )
    
    
    (122
    )
    
    
    (68
    )
    
    
    (8
    )
    
    
    (7
    )
    
    
    Other claims
    
    
    (734
    )
    
    
    (3,229
    )
    
    
    (4,700
    )
    
    
    (5,447
    )
    
    
    (4,815
    )
    
    
    (5,012
    )
    
    
    (2,866
    )
    
    
    (2,041
    )
    
    
    (711
    )
    
    
    (213
    )
    
    
    Total net (deficiency)
redundancy
    
    $
    (3,642
    )
    
    $
    (5,887
    )
    
    $
    (6,782
    )
    
    $
    (7,408
    )
    
    $
    (5,657
    )
    
    $
    (5,847
    )
    
    $
    (2,988
    )
    
    $
    (2,109
    )
    
    $
    (719
    )
    
    $
    (220
    )
    
    $
    
 7




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##### Table of Contents



(a)
    
    Ceded recoverable includes reserves transferred under retroactive reinsurance agreements of
$784 million as of December 31, 1999.
 (b)
    
    Effective January 1, 2001, we established a new life insurance company, CNA Group Life
Assurance Company (CNAGLA). Further, on January 1, 2001 $1,055 million of reserves were
transferred from CCC to CNAGLA.
 (c)
    
    Effective October 31, 2002, we sold CNA Reinsurance Company Limited. As a result of the sale,
net reserves were reduced by $1,316 million.
  Investments
  Available Information
 http://www.sec.gov
  8




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##### Table of Contents



SIGNATURES
  CNA Financial CorporationDated: February 27, 2008


    



    By
    
    /s/ D. Craig MenseD. Craig MenseExecutive Vice President andChief Financial Officer(Principal Financial & Accounting Officer)
 9