Table of Contents ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA CNA Financial Corporation Consolidated Statements of Operations Years ended December 31 The accompanying Notes are an integral part of these Consolidated Financial Statements. 54 (In millions, except per share data) 2018 2017 2016 Revenues Net earned premiums $ 7,312 $ 6,988 $ 6,924 Net investment income 1,817 2,034 1,988 Net realized investment (losses) gains: Other-than-temporary impairment losses (21 ) (14 ) (81 ) Other net realized investment (losses) gains (31) 107 131 Net realized investment (losses) gains (52 ) 93 50 Non-insurance warranty revenue (Notes A and R) 1,007 390 361 Other revenues 50 37 43 Total revenues 10,134 9,542 9,366 Claims, Benefits and Expenses Insurance claims and policyholders’ benefits 5,572 5,310 5,283 Amortization of deferred acquisition costs 1,335 1,233 1,235 Non-insurance warranty expense (Notes A and R) 923 299 271 Other operating expenses 1,202 1,229 1,281 Interest 138 161 159 Total claims, benefits and expenses 9,170 8,232 8,229 Income before income tax 964 1,310 1,137 Income tax expense (151 ) (411 ) (278 ) Net income $ 813 $ 899 $ 859 Basic earnings per share $ 2.99 $ 3.32 $ 3.18 Diluted earnings per share $ 2.98 $ 3.30 $ 3.17 Weighted Average Outstanding Common Stock and Common Stock Equivalents Basic 271.5 271.1 270.4 Diluted 272.5 272.1 271.1