LOEWS CORPORATION REPORTS NET INCOME OF $130 MILLION FOR THE THIRD QUARTER OF 2022
Loews Corporation reported a net income of $130 million ($0.54 per share) for Q3 2022, down from $220 million ($0.85 per share) in Q3 2021. Year-to-date net income is $648 million ($2.64 per share), compared to $1.2 billion ($4.70 per share) in 2021. Key drivers included higher underwriting income and improved performance in Loews Hotels & Co, offset by investment losses at CNA. Book value per share declined to $58.14, reflecting market challenges. Share repurchases totaled 10.5 million shares at a cost of $614 million.
- Loews Hotels & Co reported a net income increase to $25 million due to improved occupancy and higher room rates.
- CNA achieved a strong underlying combined ratio of 91.1%.
- Net income attributable to Loews from CNA dropped from $229 million in 2021 to $115 million in 2022.
- CNA experienced net investment losses, impacting overall profitability.
- Book value per share decreased significantly from $71.84 at the end of 2021 to $58.14.
NEW YORK, Oct. 31, 2022 /PRNewswire/ -- Loews Corporation (NYSE:L) today reported net income of
Net income in the third quarter of 2022 included higher underwriting income and increased net investment income from fixed income securities at CNA Financial Corporation (NYSE:CNA) and improved results at Loews Hotels & Co, offset by losses from limited partnership and common stock investments and net investment losses from sales of fixed income securities at CNA.
Net income for the nine months ended September 30, 2021 included a gain of
"Loews had another good quarter. Loews Hotels & Co continues to perform exceptionally well, and CNA produced a stellar underlying combined ratio of
Book value per share as of September 30, 2022 was
CONSOLIDATED HIGHLIGHTS
September 30, | ||||
Three Months | Nine Months | |||
(In millions, except per share data) | 2022 | 2021 | 2022 | 2021 |
Income before net investment gains (losses) | $ 206 | $ 204 | $ 763 | $ 725 |
Net investment gains (losses): | ||||
CNA | (76) | 16 | (115) | 84 |
Corporate | 426 | |||
Net income attributable to Loews Corporation | $ 130 | $ 220 | $ 648 | $ 1,235 |
Net income per share | $ 0.54 | $ 0.85 | $ 2.64 | $ 4.70 |
September 30, 2022 | December 31, 2021 | |||
Book value per share | $ 58.14 | $ 71.84 | ||
Book value per share excluding AOCI | 74.11 | 71.09 | ||
Three Months Ended September 30, 2022 Compared to Three Months Ended September 30, 2021
CNA's net income attributable to Loews Corporation for the three months ended September 30 decreased from
Boardwalk Pipelines' net income for the three months ended September 30, 2022 decreased
Loews Hotels & Co's net income for the three months ended September 30, 2022 increased
The Corporate & other segment results for the three months ended September 30, 2022 improved
Nine Months Ended September 30, 2022 Compared to Nine Months Ended September 30, 2021
CNA's, Boardwalk Pipelines', and Loews Hotels & Co's results for the nine months ended September 30, 2022 as compared to the comparable prior year period are consistent with the three-month discussion above.
The Corporate & other segment results for the nine months ended September 30, 2021 included a
SHARE REPURCHASES
At September 30, 2022, there were 238.1 million shares of Loews common stock outstanding. For the three and nine months ended September 30, 2022, the Company repurchased 4.1 million and 10.5 million shares of its common stock at an aggregate cost of
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
This press release contains financial measures that are not in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management believes some investors may find these measures useful to evaluate our and our subsidiaries' financial performance. CNA utilizes core income and Boardwalk Pipelines utilizes earnings before interest, income tax expense, depreciation and amortization ("EBITDA"). These measures are defined and reconciled to the most comparable GAAP measures on page 6 of this release.
CONFERENCE CALLS
A conference call to discuss the third quarter results of Loews Corporation has been scheduled for today at 10:00 a.m. ET. A live webcast will be available via the Investors/Media section of www.loews.com. Those interested in attending can also dial (800) 267-6316, or for international callers, (203) 518-9783. The conference ID number is L3Q22. An online replay will also be available at www.loews.com following the call.
A conference call to discuss the third quarter results of CNA has been scheduled for today at 9:00 a.m. ET. A live webcast will be available via the Investor Relations section of www.cna.com. Those interested in participating should dial (866) 580-3963 (USA toll free) or +1 (786) 697-3501 (USA local).
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.
FORWARD-LOOKING STATEMENTS
Statements contained in this press release which are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management of the Company. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Company's overall business and financial performance can be found in the Company's reports filed with the Securities and Exchange Commission and readers of this release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company's website (www.loews.com). Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.
Loews Corporation and Subsidiaries | ||||
Selected Financial Information | ||||
September 30, | ||||
Three Months | Nine Months | |||
(In millions) | 2022 | 2021 | 2022 | 2021 |
Revenues: | ||||
CNA Financial (a) | $ 2,957 | $ 2,959 | $ 8,768 | $ 8,854 |
Boardwalk Pipelines | 339 | 307 | 1,045 | 991 |
Loews Hotels & Co | 180 | 134 | 532 | 289 |
Investment income (loss) and other (b) (c) | (15) | (29) | (94) | 862 |
Total | $ 3,461 | $ 3,371 | $ 10,251 | $ 10,996 |
Income (Loss) Before Income Tax: | ||||
CNA Financial (a) | $ 164 | $ 314 | $ 787 | $ 1,154 |
Boardwalk Pipelines | 47 | 52 | 221 | 229 |
Loews Hotels & Co | 34 | 17 | 120 | (64) |
Corporate: (d) | ||||
Investment income (loss), net | (19) | (30) | (100) | 40 |
Other (c) | (36) | (49) | (123) | 364 |
Total | $ 190 | $ 304 | $ 905 | $ 1,723 |
Net Income (Loss) Attributable to Loews Corporation: | ||||
CNA Financial (a) | $ 115 | $ 229 | $ 579 | $ 838 |
Boardwalk Pipelines | 34 | 38 | 164 | 170 |
Loews Hotels & Co | 25 | 13 | 84 | (51) |
Corporate: (d) | ||||
Investment income (loss), net | (15) | (23) | (79) | 32 |
Other (c) | (29) | (37) | (100) | 246 |
Net income attributable to Loews Corporation | $ 130 | $ 220 | $ 648 | $ 1,235 |
(a) | The three months ended September 30, 2022 includes net investment losses of |
The three months ended September 30, 2021 includes net investment gains of | |
The nine months ended September 30, 2022 includes net investment losses of | |
The nine months ended September 30, 2021 includes net investment gains of | |
(b) | Includes parent company investment income (loss) and the financial results of Altium Packaging. On April 1, 2021, Loews sold |
(c) | Includes an investment gain of |
(d) | The Corporate segment consists of investment income (loss) from the parent company's cash and investments, interest expense, corporate |
Loews Corporation and Subsidiaries | ||||
Consolidated Financial Review | ||||
September 30, | ||||
Three Months | Nine Months | |||
(In millions, except per share data) | 2022 | 2021 | 2022 | 2021 |
Revenues: | ||||
Insurance premiums | $ 2,221 | $ 2,059 | $ 6,435 | $ 6,056 |
Net investment income | 404 | 483 | 1,202 | 1,649 |
Investment gains (losses) (a) | (96) | 22 | (166) | 657 |
Operating revenues and other | 932 | 807 | 2,780 | 2,634 |
Total | 3,461 | 3,371 | 10,251 | 10,996 |
Expenses: | ||||
Insurance claims and policyholders' benefits | 1,665 | 1,632 | 4,703 | 4,684 |
Operating expenses and other | 1,606 | 1,435 | 4,643 | 4,589 |
Total | 3,271 | 3,067 | 9,346 | 9,273 |
Income before income tax | 190 | 304 | 905 | 1,723 |
Income tax expense | (47) | (58) | (190) | (391) |
Net income | 143 | 246 | 715 | 1,332 |
Amounts attributable to noncontrolling interests | (13) | (26) | (67) | (97) |
Net income attributable to Loews Corporation | $ 130 | $ 220 | $ 648 | $ 1,235 |
Net income per share attributable to Loews Corporation | $ 0.54 | $ 0.85 | $ 2.64 | $ 4.70 |
Weighted average number of shares | 240.76 | 257.30 | 245.03 | 262.77 |
(a) | Includes an investment gain of |
DEFINITIONS OF NON-GAAP MEASURES AND RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
CNA Financial Corporation
Core income is calculated by excluding from net income attributable to Loews Corporation the after-tax effects of investment gains (losses) and any cumulative effects of changes in accounting guidance. In addition, core income excludes the effects of noncontrolling interests. The calculation of core income excludes investment gains (losses) because these are generally driven by economic factors that are not necessarily reflective of CNA's primary operations.
September 30, | ||||
Three Months | Nine Months | |||
(In millions) | 2022 | 2021 | 2022 | 2021 |
CNA net income attributable to Loews Corporation | $ 115 | $ 229 | $ 579 | $ 838 |
Investment (gains) losses | 84 | (18) | 127 | (94) |
Consolidating adjustments including noncontrolling interests | 14 | 26 | 68 | 97 |
Core income | $ 213 | $ 237 | $ 774 | $ 841 |
Boardwalk Pipelines
EBITDA is defined as earnings before interest, income tax expense, depreciation and amortization.
September 30, | ||||
Three Months | Nine Months | |||
(In millions) | 2022 | 2021 | 2022 | 2021 |
Boardwalk Pipelines net income attributable to Loews Corporation | $ 34 | $ 38 | $ 164 | $ 170 |
Interest | 42 | 40 | 126 | 121 |
Income tax expense | 13 | 14 | 57 | 59 |
Depreciation and amortization | 103 | 92 | 297 | 277 |
EBITDA | $ 192 | $ 184 | $ 644 | $ 627 |
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SOURCE Loews Corporation
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