CNA FINANCIAL CORP
For the period ended Dec 31, 2023. Filed Feb 6, 2024.
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FY2023 · Filed Feb 6, 2024
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Condensed Financial Information of Registrant (Parent Company)
SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY)
Statements of Operations and Comprehensive Income
| (In millions) | 2023 | 2022 (1) | 2021 (1) | ||
|---|---|---|---|---|---|
| Revenues | |||||
| Net investment income | $41 | $8 | $— | ||
| Total revenues | 41 | 8 | — | ||
| Expenses | |||||
| Administrative and general | 2 | 1 | 1 | ||
| Interest | 126 | 112 | 112 | ||
| Total expenses | 128 | 113 | 113 | ||
| Loss from operations before income taxes and equity in net income of subsidiaries | (87) | (105) | (113) | ||
| Income tax benefit | 4 | 6 | 11 | ||
| Loss before equity in net income of subsidiaries | (83) | (99) | (102) | ||
| Equity in net income of subsidiaries | 1,288 | 781 | 1,286 | ||
| Net income | 1,205 | 682 | 1,184 | ||
| Equity in other comprehensive income (loss) of subsidiaries | 926 | (2,238) | 177 | ||
| Total comprehensive income (loss) | $2,131 | $(1,556) | $1,361 | ||
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
Balance Sheets
| (In millions, except share data) | 2023 | 2022 (1) | |
|---|---|---|---|
| Assets | |||
| Investment in subsidiaries | $11,948 | $10,786 | |
| Cash | 1 | 2 | |
| Short-term investments | 1,009 | 578 | |
| Amounts due from affiliates | 4 | 4 | |
| Other assets | 1 | — | |
| Total assets | $12,963 | $11,370 | |
| Liabilities | |||
| Short-term debt | $550 | $243 | |
| Long-term debt | 2,481 | 2,538 | |
| Other liabilities | 39 | 41 | |
| Total liabilities | 3,070 | 2,822 | |
| Stockholders' Equity | |||
| Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 270,881,457 and 270,895,902 shares outstanding) | 683 | 683 | |
| Additional paid-in capital | 2,221 | 2,220 | |
| Retained earnings | 9,755 | 9,336 | |
| Accumulated other comprehensive loss | (2,672) | (3,598) | |
| Treasury stock (2,158,786 and 2,144,341 shares), at cost | (94) | (93) | |
| Total stockholders' equity | 9,893 | 8,548 | |
| Total liabilities and stockholders' equity | $12,963 | $11,370 | |
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
Statements of Cash Flows
| (In millions) | 2023 | 2022 (1) | 2021 (1) | ||
|---|---|---|---|---|---|
| Cash Flows from Operating Activities | |||||
| Net income | $1,205 | $682 | $1,184 | ||
| Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||
| Equity in net income of subsidiaries | (1,288) | (781) | (1,286) | ||
| Dividends received from subsidiaries | 1,055 | 990 | 880 | ||
| Other, net | 2 | 28 | 33 | ||
| Net cash flows provided by operating activities | 974 | 919 | 811 | ||
| Cash Flows from Investing Activities | |||||
| Change in short-term investments | (395) | 114 | (163) | ||
| Capital contributions to subsidiaries | (3) | — | — | ||
| Net cash flows (used) provided by investing activities | (398) | 114 | (163) | ||
| Cash Flows from Financing Activities | |||||
| Dividends paid to common stockholders | (787) | (982) | (621) | ||
| Proceeds from the issuance of debt | 491 | — | — | ||
| Repayment of debt | (243) | — | — | ||
| Purchase of treasury stock | (24) | (39) | (18) | ||
| Other, net | (14) | (11) | (8) | ||
| Net cash flows used by financing activities | (577) | (1,032) | (647) | ||
| Net change in cash | (1) | 1 | 1 | ||
| Cash, beginning of year | 2 | 1 | — | ||
| Cash, end of year | $1 | $2 | $1 | ||
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.
Notes to Condensed Financial Information
A. Summary of Significant Accounting Policies
Basis of Presentation
The condensed financial information of CNA Financial Corporation (CNAF or the Parent Company) should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Item 8 of this Form 10-K. CNAF’s subsidiaries are accounted for using the equity method of accounting. Equity in net income of these subsidiaries is presented on the Condensed Statements of Operations as Equity in net income of subsidiaries. Loews owned approximately 92% of the outstanding common stock of CNAF as of December 31, 2023.
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