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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Corporate & Other
Corporate & Other 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, A&EP, a legacy portfolio of EWC policies and certain legacy mass tort reserves.
The following table summarizes the results of operations for the Corporate & Other segment, including intersegment eliminations.
| (In millions) | 2023 | 2022 |
|---|---|---|
| Net investment income | $62 | $19 |
| Insurance claims and policyholders' benefits | 82 | 76 |
| Interest expense | 126 | 112 |
| Core loss | (173) | (183) |
Core loss decreased $10 million for 2023 as compared with 2022. The current year includes higher net investment income, a $19 million after-tax charge related to office consolidation, and a $56 million after-tax charge related to unfavorable prior period development for legacy mass tort claims compared with a $51 million after-tax charge for legacy mass tort claims in the prior year. The charge related to office consolidation is further discussed in Note M and net prior year loss reserve development is further discussed in Note E, to the Consolidated Financial Statements included under Item 8.
The application of retroactive reinsurance accounting to additional cessions to the A&EP LPT resulted in an after-tax benefit of $6 million and $3 million in 2023 and 2022, both of which have no economic impact. The A&EP LPT is further discussed in Note E to the Consolidated Financial Statements included under Item 8.
The following table summarizes the gross and net carried reserves for Corporate & Other.
| (In millions) | 2023 | 2022 |
|---|---|---|
| Gross case reserves | $1,353 | $1,428 |
| Gross IBNR reserves | 1,333 | 1,321 |
| Total gross carried claim and claim adjustment expense reserves | $2,686 | $2,749 |
| Net case reserves | $129 | $137 |
| Net IBNR reserves | 239 | 202 |
| Total net carried claim and claim adjustment expense reserves | $368 | $339 |
Impact of Office Consolidation on 2024 Results
In the first quarter of 2024, we committed to consolidate some of our offices. As a result, we anticipate a charge of approximately $16 million pretax in 2024 in our Corporate & Other segment.
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