LOEWS CORPORATION REPORTS NET INCOME OF $369 MILLION FOR THE SECOND QUARTER OF 2024
Loews (NYSE: L) reported net income of $369 million, or $1.67 per share, in Q2 2024, up from $360 million in Q2 2023. Excluding a prior period gain, net income increased 14% year-over-year, driven by CNA Financial and Boardwalk Pipelines. CNA's net income improved due to higher net investment income, while Boardwalk's results benefited from increased revenues. Book value per share, excluding AOCI, rose to $85.42 as of June 30, 2024. The company repurchased 2.4 million shares for $180 million in Q2 2024. Key highlights include:
- CNA's net income attributable to Loews increased 14% to $291 million
- Boardwalk's net income rose 23% to $70 million
- Loews Hotels' net income decreased to $35 million from $74 million
- Parent company had $3.1 billion in cash and investments and $1.8 billion in debt
Loews (NYSE: L) ha riportato un utile netto di 369 milioni di dollari, pari a 1,67 dollari per azione, nel secondo trimestre del 2024, in aumento rispetto ai 360 milioni di dollari del secondo trimestre del 2023. Escludendo un guadagno precedente, l'utile netto è aumentato del 14% rispetto all'anno precedente, grazie a CNA Financial e Boardwalk Pipelines. L'utile netto di CNA è migliorato grazie a un aumento del reddito netto da investimenti, mentre i risultati di Boardwalk hanno beneficiato di ricavi in aumento. Il valore contabile per azione, escluse le AOCI, è salito a 85,42 dollari al 30 giugno 2024. L'azienda ha riacquistato 2,4 milioni di azioni per 180 milioni di dollari nel secondo trimestre del 2024. I punti salienti includono:
- L'utile netto di CNA attribuibile a Loews è aumentato del 14% a 291 milioni di dollari
- L'utile netto di Boardwalk è aumentato del 23% a 70 milioni di dollari
- L'utile netto degli hotel Loews è diminuito a 35 milioni di dollari rispetto ai 74 milioni di dollari
- La società madre aveva 3,1 miliardi di dollari in contante e investimenti e 1,8 miliardi di dollari di debito
Loews (NYSE: L) reportó un ingreso neto de 369 millones de dólares, o 1.67 dólares por acción, en el segundo trimestre de 2024, un aumento desde los 360 millones de dólares en el segundo trimestre de 2023. Excluyendo una ganancia del período anterior, el ingreso neto aumentó un 14% interanual, impulsado por CNA Financial y Boardwalk Pipelines. El ingreso neto de CNA mejoró debido a un mayor ingreso neto por inversiones, mientras que los resultados de Boardwalk se beneficiaron de ingresos en aumento. El valor contable por acción, excluyendo AOCI, subió a 85.42 dólares al 30 de junio de 2024. La empresa recompró 2.4 millones de acciones por 180 millones de dólares en el segundo trimestre de 2024. Los puntos destacados incluyen:
- El ingreso neto de CNA atribuible a Loews aumentó un 14% a 291 millones de dólares
- El ingreso neto de Boardwalk creció un 23% a 70 millones de dólares
- El ingreso neto de Loews Hotels disminuyó a 35 millones de dólares desde 74 millones de dólares
- La empresa matriz tenía 3.1 mil millones de dólares en efectivo e inversiones y 1.8 mil millones de dólares en deudas
로우즈 (NYSE: L)는 2024년 2분기에 순이익 3억 6천9백만 달러를 보고했으며, 이는 주당 1.67달러에 해당합니다. 이는 2023년 2분기 3억 6천만 달러에서 증가한 수치입니다. 이전 기간의 이익을 제외하면 순이익은 전년 대비 14% 증가했으며, 이는 CNA 파이낸셜와 보드워크 파이프라인즈 덕분입니다. CNA의 순이익은 순 투자 수입 증가로 개선되었고, 보드워크의 결과는 증가한 수익으로 혜택을 받았습니다. 주당 장부 가치는 2024년 6월 30일 기준으로 AOCI를 제외하고 85.42달러로 상승했습니다. 회사는 2024년 2분기에 1억 8천만 달러에 240만 주를 재매입했습니다. 주요 하이라이트는 다음과 같습니다:
- 로우즈에 귀속된 CNA의 순이익은 14% 증가하여 2억 9천1백만 달러에 달했습니다
- 보드워크의 순이익은 23% 증가하여 7천만 달러에 달했습니다
- 로우즈 호텔의 순이익은 7천4백만 달러에서 3천5백만 달러로 감소했습니다
- 모회사는 현금 및 투자로 31억 달러, 부채로 18억 달러를 보유하고 있었습니다
Loews (NYSE: L) a annoncé un revenu net de 369 millions de dollars, soit 1,67 dollar par action, au deuxième trimestre 2024, en hausse par rapport à 360 millions de dollars au deuxième trimestre 2023. En excluant un gain antérieur, le revenu net a augmenté de 14 % d'une année sur l'autre, soutenu par CNA Financial et Boardwalk Pipelines. Le revenu net de CNA s'est amélioré grâce à des revenus nets d'investissement plus élevés, tandis que les résultats de Boardwalk ont bénéficié d'une augmentation des revenus. La valeur comptable par action, excluant l'AOCI, a atteint 85,42 dollars au 30 juin 2024. L'entreprise a racheté 2,4 millions d'actions pour 180 millions de dollars au deuxième trimestre 2024. Les points forts incluent :
- Le revenu net de CNA attribuable à Loews a augmenté de 14 % pour atteindre 291 millions de dollars
- Le revenu net de Boardwalk a augmenté de 23 % pour atteindre 70 millions de dollars
- Le revenu net des hôtels Loews a diminué à 35 millions de dollars contre 74 millions de dollars
- La société mère avait 3,1 milliards de dollars en liquidités et investissements et 1,8 milliard de dollars de dettes
Loews (NYSE: L) berichtete über einen Nettoertrag von 369 Millionen Dollar, oder 1,67 Dollar pro Aktie, im 2. Quartal 2024, ein Anstieg von 360 Millionen Dollar im 2. Quartal 2023. Ohne eine gewonnene Summe aus der Vorperiode erhöhte sich der Nettoertrag im Jahresvergleich um 14%, angetrieben von CNA Financial und Boardwalk Pipelines. Der Nettoertrag von CNA verbesserte sich aufgrund höherer Nettoinvestitionserträge, während das Ergebnis von Boardwalk von erhöhten Einnahmen profitierte. Der Buchwert pro Aktie, ohne AOCI, stieg bis zum 30. Juni 2024 auf 85,42 Dollar. Das Unternehmen kaufte im 2. Quartal 2024 2,4 Millionen Aktien für 180 Millionen Dollar zurück. Zu den wichtigsten Ergebnissen gehören:
- Der nettoverantwortliche Gewinn von CNA für Loews stieg um 14 % auf 291 Millionen Dollar
- Der Nettoertrag von Boardwalk stieg um 23 % auf 70 Millionen Dollar
- Der Nettoertrag von Loews Hotels sank auf 35 Millionen Dollar, nachdem er 74 Millionen Dollar betragen hatte
- Das Mutterunternehmen verfügte über 3,1 Milliarden Dollar in Barmitteln und Investitionen sowie über 1,8 Milliarden Dollar an Schulden
- Net income increased 14% year-over-year to $369 million
- CNA Financial's net income attributable to Loews improved 14% to $291 million
- Boardwalk Pipelines' net income increased 23% to $70 million
- Book value per share, excluding AOCI, rose to $85.42 from $81.92 at year-end 2023
- CNA's net written premiums grew by 6% driven by strong retention and new business
- Boardwalk's EBITDA increased 13% to $240 million
- Loews Hotels' net income decreased to $35 million from $74 million in Q2 2023
- CNA's Property and Casualty combined ratio increased to 94.8% from 93.8% in Q2 2023
- Corporate & Other segment reported a net loss of $27 million
Insights
Loews 's Q2 2024 results demonstrate solid performance across its key business segments. The company reported net income of
CNA Financial, Loews' largest subsidiary, saw its net income attributable to Loews improve by
Boardwalk Pipelines' performance was particularly impressive, with net income surging
Loews' financial position remains robust, with
While these results are encouraging, investors should note the increased catastrophe losses at CNA and the slight decline in Loews Hotels' performance. However, the overall picture remains positive, with book value per share (excluding AOCI) increasing to
CNA Financial's performance in Q2 2024 merits closer examination. The company's combined ratio for Property and Casualty increased to
However, it's important to note that CNA's underlying combined ratio, which excludes catastrophe losses and prior year development, only increased marginally to
The
The improvement in net investment income is particularly noteworthy. Higher income from fixed income securities, driven by favorable reinvestment rates and a larger invested asset base, along with better returns from partnerships, has bolstered CNA's overall profitability. This demonstrates the company's ability to capitalize on the current interest rate environment effectively.
While the increase in catastrophe losses is a concern, it's a common challenge faced by insurers and doesn't necessarily reflect poorly on CNA's risk management practices. The company's ability to maintain a strong underlying combined ratio in the face of these losses is commendable.
Boardwalk Pipelines' stellar performance in Q2 2024 reflects the robust fundamentals in the natural gas pipeline business. The
The primary drivers of this growth - increased transportation revenues from higher re-contracting rates and recently completed growth projects - indicate that Boardwalk is successfully capitalizing on the growing demand for natural gas infrastructure. The ability to secure higher rates during re-contracting suggests a favorable supply-demand balance in the markets Boardwalk serves.
The contribution from the Bayou Ethane acquisition highlights Boardwalk's effective inorganic growth strategy. This acquisition not only expands Boardwalk's asset base but also diversifies its revenue streams, potentially providing more stability to future earnings.
Increased storage and parking and lending revenues further demonstrate the company's ability to maximize the utilization of its assets. This operational flexibility allows Boardwalk to capture additional value beyond its core transportation business.
Looking ahead, the strong performance of Boardwalk Pipelines bodes well for Loews As the energy transition progresses, natural gas is likely to play a important role as a bridge fuel, potentially providing continued growth opportunities for Boardwalk. However, investors should also be mindful of potential regulatory changes and the long-term impact of the shift towards renewable energy sources on natural gas demand.
Second Quarter 2024 highlights:
Loews Corporation reported net income of
- CNA Financial Corporation's (NYSE: CNA) net income attributable to Loews improved year-over-year due to higher net investment income partially offset by higher catastrophe losses.
- Boardwalk Pipelines' results improved year-over-year mainly due to increased revenues from re-contracting at higher rates and recently completed growth projects.
- Book value per share, excluding AOCI, increased to
as of June 30, 2024, from$85.42 as of December 31, 2023 due to strong operating results and repurchases of common shares during the year.$81.92 - As of June 30, 2024, the parent company had
of cash and investments and$3.1 billion of debt.$1.8 billion - Loews Corporation repurchased 2.4 million shares of its common stock during the second quarter of 2024 for a total cost of
, and bought an additional 0.2 million shares for$180 million so far in the third quarter.$14 million
CEO commentary:
"Loews had another good quarter driven by strong results at CNA and Boardwalk. CNA continued to experience profitable growth while Boardwalk capitalized on strong fundamentals in the natural gas pipeline business."
– James S. Tisch, President and CEO, Loews Corporation
Consolidated highlights: | ||||
June 30, | ||||
Three Months | Six Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Net Income (Loss) Attributable to Loews Corporation: | ||||
CNA Financial | $ 291 | $ 255 | $ 601 | $ 523 |
Boardwalk Pipelines | 70 | 57 | 191 | 143 |
Loews Hotels & Co | 35 | 74 | 51 | 98 |
Corporate | (27) | (26) | (17) | (29) |
Net income attributable to Loews Corporation | $ 369 | $ 360 | $ 826 | $ 735 |
June 30, 2024 | December 31, 2023 | |||
Book value per share | $ 74.57 | $ 70.69 | ||
Book value per share excluding AOCI | 85.42 | 81.92 |
Three months ended June 30, 2024 compared to 2023
CNA:
- Net income attributable to Loews Corporation improved
14% to from$291 million .$255 million - Core income increased
6% to from$326 million .$308 million - Net investment income increased due to higher income from fixed income securities as a result of favorable reinvestment rates and a larger invested asset base and favorable returns from limited partnerships.
- Net written premiums grew by
6% driven by strong retention and new business. Net earned premiums grew by7% . - Property and Casualty's underwriting income decreased due to higher catastrophe losses.
- Property and Casualty's combined ratio was
94.8% compared to93.8% in the second quarter of 2023 partially due to a 0.4 point increase in catastrophe losses. Property and Casualty's underlying combined ratio was91.6% compared to91.1% in the second quarter of 2023. - Net income was also positively impacted by lower investment losses driven by lower impairments.
Boardwalk:
- Net income increased
23% to compared to$70 million .$57 million - EBITDA increased
13% to compared to$240 million .$213 million - Net income and EBITDA improved due to increased transportation revenues from higher re-contracting rates and recently completed growth projects, increased storage and parking and lending revenues, and contribution from the Bayou Ethane acquisition.
Loews Hotels:
- Net income of
compared to$35 million .$74 million - Adjusted EBITDA of
compared to$98 million .$100 million - Net income for 2023 included a gain of
related to the acquisition of an additional equity interest in, and the consolidation of, a previously unconsolidated joint venture property.$36 million - Excluding this gain, net income decreased due to lower equity income from joint ventures as occupancy and average daily rates decreased in
Orlando , partially offset by improved performance at city center hotels. - Net income was also impacted by higher depreciation and interest expense due to the opening of the Loews Arlington Hotel and Convention Center in the first quarter of 2024.
Corporate & Other:
- Net loss of
compared to$27 million .$26 million - The decrease in results is primarily due to lower investment income from parent company equity securities partially offset by higher income from short-term investments and fixed income securities.
Six months ended June 30, 2024 compared to 2023
Loews Corporation reported net income of
- CNA's net investment income increased due to higher income from fixed income securities as a result of favorable reinvestment rates and a larger invested asset base and favorable returns from limited partnerships and common stock.
- Property and Casualty's underwriting results were lower due to higher net catastrophe losses partially offset by favorable net prior year loss reserve development.
- Property and Casualty's combined ratio was
94.7% compared to93.9% . Property and Casualty's underlying combined ratio was91.4% compared to91.0% . - CNA's net written premiums increased
6% . - Corporate & Other results improved year-over-year driven by higher returns from parent company equity securities and short-term investments.
- All other segment drivers of results for the six months ended June 30, 2024 as compared to the comparable prior year period are consistent with the three-month period drivers discussed above.
Share Purchases:
- On June 30, 2024, there were 219.7 million shares of Loews common stock outstanding.
- During the three months ended June 30, 2024, Loews Corporation repurchased 2.4 million shares of its common stock for a total cost of
.$180 million - Loews has repurchased an additional 0.2 million shares for
so far in the third quarter.$14 million - 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.
Reconciliation of GAAP Measures to Non-GAAP Measures
This news release contains financial measures that are not in accordance with accounting principles generally accepted in
Earnings Remarks
For Loews Corporation
- Today, July 29, 2024, earnings remarks will be available on our website.
- Remarks will include commentary from Loews's president and chief executive officer and chief financial officer.
For CNA
- Today, July 29, 2024, earnings remarks will be available on the Investor Relations section of CNA's website at www.cna.com.
- Remarks will include commentary from CNA's chairman and chief executive officer and chief financial officer.
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 news 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 news 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 | ||||
June 30, | ||||
Three Months | Six Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Revenues: | ||||
CNA Financial (a) | $ 3,519 | $ 3,304 | $ 6,963 | $ 6,456 |
Boardwalk Pipelines | 488 | 365 | 1,005 | 762 |
Loews Hotels & Co (b) | 251 | 254 | 467 | 446 |
Corporate investment income, net | 9 | 11 | 63 | 53 |
Total | $ 4,267 | $ 3,934 | $ 8,498 | $ 7,717 |
Income (Loss) Before Income Tax: | ||||
CNA Financial (a) | $ 402 | $ 361 | $ 829 | $ 732 |
Boardwalk Pipelines | 94 | 76 | 256 | 192 |
Loews Hotels & Co (b) | 44 | 101 | 72 | 135 |
Corporate: | ||||
Investment income, net | 9 | 11 | 63 | 53 |
Other (c) | (42) | (41) | (84) | (85) |
Total | $ 507 | $ 508 | $ 1,136 | $ 1,027 |
Net Income (Loss) Attributable to Loews Corporation: | ||||
CNA Financial (a) | $ 291 | $ 255 | $ 601 | $ 523 |
Boardwalk Pipelines | 70 | 57 | 191 | 143 |
Loews Hotels & Co (b) | 35 | 74 | 51 | 98 |
Corporate: | ||||
Investment income, net | 7 | 9 | 50 | 42 |
Other (c) | (34) | (35) | (67) | (71) |
Net income attributable to Loews Corporation | $ 369 | $ 360 | $ 826 | $ 735 |
(a) | The three months ended June 30, 2024 and 2023 include net investment losses of |
(b) | Includes a gain of |
(c) | Consists of parent company interest expense, corporate expenses and the equity income (loss) of Altium Packaging. |
Loews Corporation and Subsidiaries Consolidated Financial Review | ||||
June 30, | ||||
Three Months | Six Months | |||
(In millions, except per share data) | 2024 | 2023 | 2024 | 2023 |
Revenues: | ||||
Insurance premiums | $ 2,498 | $ 2,347 | $ 4,939 | $ 4,595 |
Net investment income | 639 | 592 | 1,308 | 1,161 |
Investment gains (losses) (a) | (10) | 14 | (32) | (21) |
Operating revenues and other | 1,140 | 981 | 2,283 | 1,982 |
Total | 4,267 | 3,934 | 8,498 | 7,717 |
Expenses: | ||||
Insurance claims and policyholders' benefits | 1,882 | 1,779 | 3,689 | 3,432 |
Operating expenses and other | 1,878 | 1,647 | 3,673 | 3,258 |
Total | 3,760 | 3,426 | 7,362 | 6,690 |
Income before income tax | 507 | 508 | 1,136 | 1,027 |
Income tax expense | (112) | (120) | (256) | (235) |
Net income | 395 | 388 | 880 | 792 |
Amounts attributable to noncontrolling interests | (26) | (28) | (54) | (57) |
Net income attributable to Loews Corporation | $ 369 | $ 360 | $ 826 | $ 735 |
Net income per share attributable to Loews Corporation | $ 1.67 | $ 1.58 | $ 3.72 | $ 3.19 |
Weighted average number of shares | 221.60 | 227.97 | 222.18 | 230.78 |
(a) | Includes a 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 CNA's net income attributable to Loews Corporation the after-tax effects of investment gains (losses) and 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. The following table presents a reconciliation of CNA net income attributable to Loews Corporation to core income:
June 30, | ||||
Three Months | Six Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
CNA net income attributable to Loews Corporation | $ 291 | $ 255 | $ 601 | $ 523 |
Investment losses | 9 | 25 | 26 | 53 |
Noncontrolling interests | 26 | 28 | 54 | 57 |
Core income | $ 326 | $ 308 | $ 681 | $ 633 |
Boardwalk Pipelines
EBITDA is defined as earnings before interest, income tax expense, depreciation and amortization. The following table presents a reconciliation of Boardwalk net income attributable to Loews Corporation to its EBITDA:
June 30, | ||||
Three Months | Six Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Boardwalk net income attributable to Loews Corporation | $ 70 | $ 57 | $ 191 | $ 143 |
Interest, net | 38 | 35 | 77 | 72 |
Income tax expense | 24 | 19 | 65 | 49 |
Depreciation and amortization | 108 | 102 | 214 | 203 |
EBITDA | $ 240 | $ 213 | $ 547 | $ 467 |
Loews Hotels & Co
Adjusted EBITDA is calculated by excluding from Loews Hotels & Co's EBITDA, the noncontrolling interest share of EBITDA adjustments, state and local government development grants, gains or losses on asset acquisitions and dispositions, asset impairments, and equity method income, and including Loews Hotels & Co's pro rata Adjusted EBITDA of equity method investments. Pro rata Adjusted EBITDA of equity method investments is calculated by applying Loews Hotels & Co's ownership percentage to the underlying equity method investment's components of EBITDA and excluding distributions in excess of basis.
The following table presents a reconciliation of Loews Hotels & Co net income attributable to Loews Corporation to its Adjusted EBITDA:
June 30, | ||||
Three Months | Six Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Loews Hotels & Co net income attributable to Loews Corporation | $ 35 | $ 74 | $ 51 | $ 98 |
Interest, net | 12 | (1) | 17 | 4 |
Income tax expense | 9 | 27 | 21 | 37 |
Depreciation and amortization | 24 | 17 | 45 | 33 |
EBITDA | 80 | 117 | 134 | 172 |
Noncontrolling interest share of EBITDA adjustments | (2) | (4) | ||
Gain on asset acquisition | (46) | (46) | ||
Asset impairments | 9 | 9 | ||
Equity investment adjustments: | ||||
Loews Hotels & Co's equity method income | (32) | (41) | (59) | (72) |
Pro rata Adjusted EBITDA of equity method investments | 50 | 62 | 106 | 124 |
Consolidation adjustments | 2 | (1) | 1 | (2) |
Adjusted EBITDA | $ 98 | $ 100 | $ 178 | $ 185 |
The following table presents a reconciliation of Loews Hotels & Co's equity method income to the Pro rata Adjusted EBITDA of its equity method investments:
June 30, | ||||
Three Months | Six Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Loews Hotels & Co's equity method income | $ 32 | $ 41 | $ 59 | $ 72 |
Pro rata share of equity method investments: | ||||
Interest, net | 10 | 12 | 20 | 23 |
Income tax expense | ||||
Depreciation and amortization | 12 | 12 | 24 | 25 |
Distributions in excess of basis | (4) | (3) | 3 | 3 |
Consolidation adjustments | 1 | |||
Pro rata Adjusted EBITDA of equity method investments | $ 50 | $ 62 | $ 106 | $ 124 |
View original content:https://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-369-million-for-the-second-quarter-of-2024-302207770.html
SOURCE Loews Corporation
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