L · 10-Q · 2026Q3 · Full report

Long-Term Care Reserve Updates

LOEWS CORP · 2026-11-02 · Importance 77 · Surprise 82 · Matches filing data

CNA’s third-quarter 2026 annual long-term care reserve review increased pretax reserves by $173 million, primarily due to unfavorable cost-of-care inflation and morbidity, partly offset by favorable premium-rate actions. The comparable 2025 review increased pretax reserves by $7 million. Loews reported a $125 million unfavorable after-tax and noncontrolling-interest impact from the 2026 assumption updates. CNA said anticipated future investment cash flows from portfolio actions are expected to offset almost all of the unfavorable expected cash flows, but those benefits will be recognized in net investment income over time rather than immediately in earnings.

Key facts

• CNA's 2026 annual long-term care reserve assumption updates had an unfavorable $125 million after-tax and noncontrolling-interest impact in the third quarter and nine-month period. source
• The third-quarter 2026 annual reserve review cash-flow assumption updates increased long-term care reserves by $173 million pretax, driven primarily by unfavorable cost-of-care inflation and morbidity, partly offset by favorable premium rate actions. source
• CNA's statutory long-term care margin was $1.3 billion as of September 30, 2026. source
• The unfavorable expected cash flows from the 2026 long-term care reserve assumption updates are almost entirely offset by a favorable economic impact from anticipated future investment cash flows from recent investment portfolio actions; GAAP earnings recognize those benefits over time through net investment income. source
• The comparable third-quarter 2025 annual reserve review assumption updates increased long-term care reserves by $7 million pretax. source
• CNA's hypothetical 2.5% morbidity increase was estimated to reduce pretax income by $5 million. source

Impact estimates