LOEWS CORPORATION REPORTS NET INCOME OF $401 MILLION FOR THE THIRD QUARTER OF 2024
Loews (NYSE: L) reported Q3 2024 net income of $401 million, or $1.82 per share, up from $253 million in Q3 2023. The 38% year-over-year growth was driven by improvements at CNA Financial, Boardwalk Pipelines, and parent company investment income, partially offset by decreased performance at Loews Hotels. CNA's results improved due to higher investment income, while Boardwalk benefited from increased revenues from re-contracting at higher rates. Book value per share excluding AOCI increased to $87.22. The company repurchased 0.8 million shares for $64 million in Q3 and an additional 1.2 million shares for $92 million in Q4.
Loews (NYSE: L) ha riportato un utile netto per il terzo trimestre 2024 di 401 milioni di dollari, ovvero 1,82 dollari per azione, in aumento rispetto ai 253 milioni di dollari del terzo trimestre 2023. La crescita del 38% su base annua è stata sostenuta dai miglioramenti di CNA Financial, Boardwalk Pipelines e dai redditi da investimenti della società madre, parzialmente compensati da una performance inferiore di Loews Hotels. I risultati di CNA sono migliorati grazie a maggiori redditi da investimenti, mentre Boardwalk ha beneficiato dell'aumento dei ricavi da ri-contrattazione a tariffe più elevate. Il valore contabile per azione, escluso l'AOCI, è aumentato a 87,22 dollari. L'azienda ha riacquistato 0,8 milioni di azioni per 64 milioni di dollari nel terzo trimestre e ulteriori 1,2 milioni di azioni per 92 milioni di dollari nel quarto trimestre.
Loews (NYSE: L) informó un ingreso neto de 401 millones de dólares para el tercer trimestre de 2024, o 1.82 dólares por acción, un aumento desde los 253 millones de dólares en el tercer trimestre de 2023. Este crecimiento del 38% en comparación interanual fue impulsado por las mejoras en CNA Financial, Boardwalk Pipelines y los ingresos por inversiones de la empresa matriz, compensados en parte por un rendimiento reducido en Loews Hotels. Los resultados de CNA mejoraron debido a un mayor ingreso por inversiones, mientras que Boardwalk se benefició de ingresos incrementados por la recontratación a tasas más altas. El valor contable por acción, excluyendo el AOCI, aumentó a 87.22 dólares. La compañía recompró 0.8 millones de acciones por 64 millones de dólares en el tercer trimestre y 1.2 millones de acciones adicionales por 92 millones de dólares en el cuarto trimestre.
로우스 (NYSE: L)는 2024년 3분기 순이익이 4억 1백만 달러, 주당 1.82달러로, 2023년 3분기의 2억 5천 3백만 달러에서 증가했다고 보고했습니다. 올해 대비 38%의 성장은 CNA 금융, 보드워크 파이프라인 및 모회사 투자 수익의 개선에 의해 주도되었으며, 로우스 호텔에서의 성과 감소로 부분적으로 상쇄되었습니다. CNA의 실적은 높은 투자 수익 덕분에 개선되었고, 보드워크는 더 높은 요율로 재계약으로 인한 수익 증가의 혜택을 보았습니다. AOCI를 제외한 주당 장부 가치는 87.22달러로 증가했습니다. 회사는 3분기에 6400만 달러에 80만 주를 재매입하였고, 4분기에는 추가로 9200만 달러에 120만 주를 재매입했습니다.
Loews (NYSE: L) a déclaré un bénéfice net pour le troisième trimestre 2024 de 401 millions de dollars, soit 1,82 dollar par action, en hausse par rapport à 253 millions de dollars au troisième trimestre 2023. Cette croissance de 38 % par rapport à l'année précédente a été soutenue par des améliorations chez CNA Financial, Boardwalk Pipelines et les revenus d'investissement de la société mère, partiellement compensés par une performance réduite des hôtels Loews. Les résultats de CNA se sont améliorés grâce à des revenus d'investissement plus élevés, tandis que Boardwalk a bénéficié de revenus accrus grâce à des recontractations à des taux plus élevés. La valeur comptable par action, hors AOCI, a augmenté à 87,22 dollars. L'entreprise a racheté 0,8 million d'actions pour 64 millions de dollars au 3ème trimestre et 1,2 million d'actions supplémentaires pour 92 millions de dollars au 4ème trimestre.
Loews (NYSE: L) berichtete über einen Nettogewinn von 401 Millionen Dollar im dritten Quartal 2024, was 1,82 Dollar pro Aktie entspricht, ein Anstieg von 253 Millionen Dollar im dritten Quartal 2023. Das jährliche Wachstum von 38% wurde durch Verbesserungen bei CNA Financial, Boardwalk Pipelines und den Investitionseinnahmen der Muttergesellschaft angetrieben, teilweise ausgeglichen durch eine geringere Leistung bei Loews Hotels. Die Ergebnisse von CNA verbesserten sich aufgrund höherer Investitionseinnahmen, während Boardwalk von höheren Einnahmen durch die Neuverträge profitierte. Der Buchwert pro Aktie ohne AOCI stieg auf 87,22 Dollar. Das Unternehmen hat im 3. Quartal 0,8 Millionen Aktien für 64 Millionen Dollar und im 4. Quartal zusätzlich 1,2 Millionen Aktien für 92 Millionen Dollar zurückgekauft.
- Net income increased 38% YoY to $401 million ($1.82 per share)
- CNA Financial's net income improved 10% to $259 million
- Boardwalk Pipelines' net income increased 57% to $77 million
- Book value per share excluding AOCI increased to $87.22 from $81.92
- Parent company maintains strong liquidity with $3.3 billion in cash and investments
- Loews Hotels reported net loss of $8 million compared to net income of $17 million last year
- CNA's Property and Casualty combined ratio deteriorated to 97.2% from 94.3%
- Higher catastrophe losses impacted CNA's underwriting performance
Insights
The Q3 2024 results demonstrate strong financial performance with
The balance sheet remains robust with
The ongoing share repurchase program, with
Boardwalk Pipelines' performance stands out with a
The pipeline segment's strong performance reflects broader industry tailwinds in natural gas infrastructure, benefiting from increased demand and improved pricing power. The continued execution of growth projects and ability to secure higher rates on contract renewals indicates sustainable momentum in this business unit.
Third 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.
- Parent company investment income improved year-over-year primarily due to higher returns on equity securities.
- Loews Hotels' results decreased primarily due to an impairment charge recorded by a joint venture property.
- Book value per share, excluding AOCI, increased to
as of September 30, 2024, from$87.22 as of December 31, 2023 due to strong operating results and repurchases of common shares during the year.$81.92 - As of September 30, 2024, the parent company had
of cash and investments and$3.3 billion of debt.$1.8 billion - Loews Corporation repurchased 0.8 million shares of its common stock during the third quarter of 2024 for a total cost of
, and bought an additional 1.2 million shares for$64 million so far in the fourth quarter.$92 million
CEO commentary:
"Loews had another good quarter. Boardwalk continues to benefit from favorable industry tailwinds that have led to higher re-contracting rates and robust pipeline flows. CNA performed well despite elevated industry catastrophe losses."
– James S. Tisch, President and CEO, Loews Corporation
Consolidated highlights: | ||||
September 30, | ||||
Three Months | Nine Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Net Income (Loss) Attributable to Loews Corporation: | ||||
CNA Financial | $ 259 | $ 235 | $ 860 | $ 758 |
Boardwalk Pipelines | 77 | 49 | 268 | 191 |
Loews Hotels & Co | (8) | 17 | 43 | 115 |
Corporate | 73 | (48) | 56 | (76) |
Net income attributable to Loews Corporation | $ 401 | $ 253 | $ 1,227 | $ 988 |
Net income per share attributable to Loews Corporation | $ 1.82 | $ 1.12 | $ 5.54 | $ 4.31 |
September 30, 2024 | December 31, 2023 | ||
Book value per share | $ 79.28 | $ 70.69 | |
Book value per share excluding AOCI | 87.22 | 81.92 |
Three months ended September 30, 2024 compared to 2023
CNA:
- Net income attributable to Loews Corporation improved
10% to from$259 million .$235 million - Core income increased
1% to from$293 million .$289 million - Net investment income growth was primarily driven by higher returns from limited partnership and common stock investments. Income from fixed income securities also increased as a result of favorable reinvestment rates and a larger invested asset base.
- Net written premiums grew by
8% driven by strong retention and new business. Net earned premiums grew by8% . - Property and Casualty underwriting income decreased due to higher catastrophe losses, including hurricane Helene.
- Property and Casualty combined ratio was
97.2% compared to94.3% . The combined ratio's increase of 2.9 points reflects a higher loss ratio that includes a 1.7 point increase in catastrophe losses. Property and Casualty underlying combined ratio was91.6% compared to90.4% . - Lower investment losses were driven by lower losses on fixed income securities and a favorable change in the fair value of non-redeemable preferred stock.
Boardwalk:
- Net income increased
57% to compared to$77 million .$49 million - EBITDA increased
23% to compared to$249 million .$202 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 loss of
compared to net income of$8 million .$17 million - Results decreased due to an impairment charge recorded by a joint venture property and higher depreciation and interest expense due to the opening of the Loews Arlington Hotel and Convention Center in the first quarter of 2024.
- Adjusted EBITDA of
compared to$64 million .$60 million - Improved performance at city center hotels was partially offset by decreased occupancy in
Orlando .
Corporate & Other:
- Net income of
compared to a net loss of$73 million .$48 million - Net loss for 2023 included a charge of
related to the termination of our defined benefit pension plan.$37 million - Excluding this charge, results improved primarily due to higher investment income from parent company equity securities.
Nine months ended September 30, 2024 compared to 2023
Loews Corporation reported net income of
- CNA's net investment income increased due to higher returns from limited partnership and common stock investments, and higher income from fixed income securities as a result of favorable reinvestment rates and a larger invested asset base.
- Property and Casualty underwriting income decreased due to higher catastrophe losses.
- Property and Casualty combined ratio was
95.6% compared to94.0% . Property and Casualty's underlying combined ratio was91.5% compared to90.8% . - CNA's net written premiums increased
7% . - Loews Hotels & Co's 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 - All other segment drivers of results for the nine months ended September 30, 2024 are consistent with the three-month period drivers discussed above.
Share Purchases:
- On September 30, 2024, there were 218.9 million shares of Loews common stock outstanding.
- During the three months ended September 30, 2024, Loews Corporation repurchased 0.8 million shares of its common stock for a total cost of
.$64 million - Loews has repurchased an additional 1.2 million shares for
so far in the fourth quarter.$92 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, November 4, 2024, earnings remarks will be available on the Investors section of our website.
- Remarks will include commentary from Loews's president and chief executive officer and chief financial officer.
For CNA
- Today, November 4, 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 | ||||
September 30, | ||||
Three Months | Nine Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Revenues: | ||||
CNA Financial (a) | $ 3,618 | $ 3,336 | $ 10,581 | $ 9,792 |
Boardwalk Pipelines | 483 | 363 | 1,488 | 1,125 |
Loews Hotels & Co (b) | 226 | 196 | 693 | 642 |
Corporate investment income, net | 139 | 31 | 202 | 84 |
Total | $ 4,466 | $ 3,926 | $ 12,964 | $ 11,643 |
Income (Loss) Before Income Tax: | ||||
CNA Financial (a) | $ 361 | $ 326 | $ 1,190 | $ 1,058 |
Boardwalk Pipelines | 104 | 66 | 360 | 257 |
Loews Hotels & Co (b) | (9) | 24 | 63 | 159 |
Corporate: | ||||
Investment income, net | 140 | 31 | 203 | 84 |
Other (c) | (46) | (91) | (130) | (175) |
Total | $ 550 | $ 356 | $ 1,686 | $ 1,383 |
Net Income (Loss) Attributable to Loews Corporation: | ||||
CNA Financial (a) | $ 259 | $ 235 | $ 860 | $ 758 |
Boardwalk Pipelines | 77 | 49 | 268 | 191 |
Loews Hotels & Co (b) | (8) | 17 | 43 | 115 |
Corporate: | ||||
Investment income, net | 110 | 24 | 160 | 66 |
Other (c) | (37) | (72) | (104) | (142) |
Net income attributable to Loews Corporation | $ 401 | $ 253 | $ 1,227 | $ 988 |
(a) | The three months ended September 30, 2024 and 2023 include net investment losses of |
(b) | The three and nine months ended September 30, 2024 include Loews Hotels & Co's portion of a joint venture property's impairment charge which reduced equity income from joint ventures by |
(c) | Consists of parent company interest expense, corporate expenses and the equity income (loss) of Altium Packaging. The three and nine months ended September 30, 2023 include a charge of |
Loews Corporation and Subsidiaries Consolidated Financial Review | ||||
September 30, | ||||
Three Months | Nine Months | |||
(In millions, except per share data) | 2024 | 2023 | 2024 | 2023 |
Revenues: | ||||
Insurance premiums | $ 2,593 | $ 2,406 | $ 7,532 | $ 7,001 |
Net investment income | 776 | 592 | 2,084 | 1,752 |
Investment losses (a) | (10) | (38) | (42) | (59) |
Operating revenues and other | 1,107 | 966 | 3,390 | 2,949 |
Total | 4,466 | 3,926 | 12,964 | 11,643 |
Expenses: | ||||
Insurance claims and policyholders' benefits | 2,019 | 1,826 | 5,708 | 5,258 |
Operating expenses and other | 1,897 | 1,744 | 5,570 | 5,002 |
Total | 3,916 | 3,570 | 11,278 | 10,260 |
Income before income tax | 550 | 356 | 1,686 | 1,383 |
Income tax expense | (125) | (80) | (381) | (315) |
Net income | 425 | 276 | 1,305 | 1,068 |
Amounts attributable to noncontrolling interests | (24) | (23) | (78) | (80) |
Net income attributable to Loews Corporation | $ 401 | $ 253 | $ 1,227 | $ 988 |
Net income per share attributable to Loews Corporation | $ 1.82 | $ 1.12 | $ 5.54 | $ 4.31 |
Weighted average number of shares | 219.94 | 225.99 | 221.43 | 229.16 |
(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 or losses and gains or losses resulting from pension settlement transactions. In addition, core income excludes the effects of noncontrolling interests. The calculation of core income excludes investment gains or losses because they are generally driven by economic factors that are not necessarily reflective of CNA's primary insurance operations. The calculation of core income excludes gains or losses resulting from pension settlement transactions as they result from decisions regarding CNA's defined benefit pension plans which are unrelated to its primary insurance operations.
The following table presents a reconciliation of CNA net income attributable to Loews Corporation to core income:
September 30, | ||||
Three Months | Nine Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
CNA net income attributable to Loews Corporation | $ 259 | $ 235 | $ 860 | $ 758 |
Investment losses | 7 | 31 | 33 | 84 |
Pension settlement losses | 3 | 3 | ||
Noncontrolling interests | 24 | 23 | 78 | 80 |
Core income | $ 293 | $ 289 | $ 974 | $ 922 |
In evaluating the results of Property & Casualty operations, CNA utilizes the loss ratio, the underlying loss ratio, the expense ratio, the dividend ratio, the combined ratio and the underlying combined ratio. These ratios are calculated using GAAP financial results. The loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums. The underlying loss ratio excludes the impact of catastrophe losses and development-related items from the loss ratio. Development-related items represent net prior year loss reserve and premium development, and includes the effects of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts. The expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums. The dividend ratio is the ratio of policyholders' dividends incurred to net earned premiums. The combined ratio is the sum of the loss, expense and dividend ratios. The underlying combined ratio is the sum of the underlying loss ratio, the expense ratio and the dividend ratio. The underlying loss ratio and the underlying combined ratio are non-GAAP financial measures, and management believes some investors may find these ratios useful to evaluate CNA's underwriting performance since they remove the impact of catastrophe losses which are unpredictable as to timing and amount, and development-related items as they are not indicative of current year underwriting performance.
The following table presents a reconciliation of CNA's loss ratio to underlying loss ratio and CNA's combined ratio to underlying combined ratio:
September 30, | ||||
Three Months | Nine Months | |||
2024 | 2023 | 2024 | 2023 | |
Loss ratio | 66.7 % | 63.9 % | 64.9 % | 63.1 % |
Expense ratio | 30.2 | 30.1 | 30.3 | 30.6 |
Dividend ratio | 0.3 | 0.3 | 0.4 | 0.3 |
Combined ratio | 97.2 % | 94.3 % | 95.6 % | 94.0 % |
Effect of catastrophe impacts | (5.8) | (4.1) | (4.3) | (3.2) |
Effect of development-related items | 0.2 | 0.2 | 0.2 | |
Underlying combined ratio | 91.6 % | 90.4 % | 91.5 % | 90.8 % |
Underlying loss ratio | 61.1 % | 60.0 % | 60.8 % | 59.9 % |
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:
September 30, | ||||
Three Months | Nine Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Boardwalk net income attributable to Loews Corporation | $ 77 | $ 49 | $ 268 | $ 191 |
Interest, net | 38 | 33 | 115 | 106 |
Income tax expense | 27 | 17 | 92 | 66 |
Depreciation and amortization | 107 | 103 | 321 | 306 |
EBITDA | $ 249 | $ 202 | $ 796 | $ 669 |
Loews Hotels & Co
Adjusted EBITDA is calculated by excluding from Loews Hotels & Co's EBITDA, the noncontrolling interest share of EBITDA adjustments, 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 Adjusted 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:
September 30, | ||||
Three Months | Nine Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Loews Hotels & Co net income (loss) attributable to Loews Corporation | $ (8) | $ 17 | $ 43 | $ 115 |
Interest, net | 13 | 1 | 30 | 5 |
Income tax expense (benefit) | (1) | 7 | 20 | 44 |
Depreciation and amortization | 24 | 18 | 69 | 51 |
EBITDA | 28 | 43 | 162 | 215 |
Noncontrolling interest share of EBITDA adjustments | (1) | (2) | (5) | (3) |
Gain on asset acquisition | (46) | |||
Asset impairments | 9 | |||
Equity investment adjustments: | ||||
Loews Hotels & Co's equity method income | — | (26) | (59) | (98) |
Pro rata Adjusted EBITDA of equity method investments | 38 | 45 | 144 | 168 |
Consolidation adjustments | (1) | |||
Adjusted EBITDA | $ 64 | $ 60 | $ 242 | $ 245 |
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:
September 30, | ||||
Three Months | Nine Months | |||
(In millions) | 2024 | 2023 | 2024 | 2023 |
Loews Hotels & Co's equity method income | $ — | $ 26 | $ 59 | $ 98 |
Pro rata share of equity method investments: | ||||
Interest, net | 10 | 10 | 30 | 33 |
Income tax expense | ||||
Depreciation and amortization | 11 | 12 | 35 | 37 |
Asset impairments | 19 | 19 | ||
Distributions in excess of basis | (2) | (3) | 1 | |
Pro rata Adjusted EBITDA of equity method investments | $ 38 | $ 45 | $ 144 | $ 168 |
View original content:https://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-401-million-for-the-third-quarter-of-2024-302294539.html
SOURCE Loews Corporation
FAQ
What was Loews 's (NYSE: L) net income in Q3 2024?
How many shares did Loews (NYSE: L) repurchase in Q3 2024?
What was Loews 's (NYSE: L) book value per share as of September 30, 2024?