Loews Corporation Reports Net Income Of $457 Million For The First Quarter Of 2024

Loews Corporation (NYSE: L) today released its first quarter 2024 financial results.

First Quarter 2024 highlights:
Loews Corporation reported net income of $457 million, or $2.05 per share, in the first quarter of 2024, which represents a 22% increase over $375 million, or $1.61 per share, in the first quarter of 2023. The following are the highlights:

• CNA Financial Corporation’s (NYSE: CNA) net income attributable to Loews improved year-over-year due to higher net investment income and favorable net prior year loss reserve development, partially offset by higher net catastrophe losses.
• Boardwalk Pipelines’ results improved year-over-year due to higher revenues from re-contracting at higher rates and recently completed growth projects.
• Parent company investment returns improved year-over-year driven by higher returns on equity securities.
• Book value per share, excluding AOCI, increased to $83.68 as of March 31, 2024, from $81.92 as of December 31, 2023 due to strong operating results in the first quarter 2024.
• As of March 31, 2024, the parent company had $3.2 billion of cash and investments and $1.8 billion of debt.
• Loews Corporation repurchased 0.9 million shares of its common stock for a total cost of $67 million since December 31, 2023.

CEO commentary:

“Loews had an exceptional quarter driven by stellar results at CNA and Boardwalk. CNA continues to experience strong profitable growth, reporting its highest ever first quarter core income.”
–      James S. Tisch, President and CEO, Loews Corporation

Three months ended March 31, 2024 compared to 2023

CNA:

• Net income attributable to Loews Corporation improved 16% to $310 million from $268 million.
• Core income increased 9% to $355 million from $325 million.
• Net investment income increased due to favorable returns from limited partnerships and common stock as well as higher income from fixed income securities as a result of favorable reinvestment rates.
• Net written premiums grew by 6% driven by strong retention and new business. Net earned premiums grew by 9%.
• Property and Casualty underwriting income decreased slightly due to higher net catastrophe losses, partially offset by favorable net prior year loss reserve development.
• Property and Casualty combined ratio was 94.6% compared to 93.9% in the first quarter of 2023 due to a 1.4 point increase in catastrophe losses, partially offset by favorable prior period development. The Property and Casualty underlying combined ratio was 91.0% compared to 90.8% in the first quarter of 2023.
• Net income was positively impacted by lower investment losses driven by the favorable change in fair value of non-redeemable preferred stock.

Boardwalk:

• Net income increased 41% to $121 million compared to $86 million.
• EBITDA increased 20% to $307 million compared to $256 million.
• Net income and EBITDA improved due to higher transportation revenues from re-contracting at higher rates and recently completed growth projects, increased storage and parking and lending revenues, and the impact of the Bayou Ethane acquisition.

Loews Hotels:

• Net income of $16 million compared to $24 million.
• Adjusted EBITDA of $80 million compared to $86 million.
• Lower equity income from joint ventures was driven by decreased occupancy rates in Orlando.
• Net income was also impacted by higher depreciation and pre-opening expenses due to the opening of the Loews Arlington Hotel and Convention Center.

Corporate & Other:

• Net income of $10 million compared to a net loss of $3 million.
• The increase in results is primarily due to higher investment income from parent company equity securities.

Share Purchases:

• On March 31, 2024, there were 222.1 million shares of Loews common stock outstanding.
• Loews Corporation repurchased 0.9 million shares of its common stock for a total cost of $67 million since December 31, 2023.
• Depending on market conditions, Loews may from time to time purchase shares of its and its subsidiaries’ outstanding common stock in the open market, in privately negotiated transactions or otherwise. .

About Loews Corporation

Loews Corporation is a diversified company with businesses in the insurance, energy, hospitality and packaging industries. For more information, please visit www.loews.com.