L · 10-Q · 2026Q3 · Full report

Illinois Insurance Dividend Restrictions

LOEWS CORP · 2026-11-02 · Importance 25 · Surprise 6

Dividends from Continental Casualty Company (CCC) to CNA are subject to Illinois insurance holding-company laws and the Illinois Department of Insurance’s prior-approval requirements for dividends exceeding ordinary-dividend limits. Ordinary dividends are determined by statutory net income or 10% of prior-year statutory surplus, along with dividends paid in the preceding 12 months, and may be paid only from earned surplus. CCC had positive earned surplus at September 30, 2026 and paid dividends of $905 million during the first nine months of 2026. The filing notes that actual annual dividends depend on available capacity, holding-company liquidity and cash needs, and the effect on the insurer’s statutory surplus.

Key facts

• CCC paid dividends of $905 million and $755 million during the nine months ended September 30, 2026 and 2025, respectively. source
• Illinois law permits CCC ordinary dividends only from earned surplus; as of September 30, 2026, CCC was in a positive earned surplus position. source
• CCC ordinary dividends to CNA are subject to Illinois insurance holding company laws; ordinary dividends are determined using the greater of prior-year statutory net income or 10% of prior-year-end statutory surplus, plus consideration of dividends paid in the preceding 12 months. source