LOEWS CORPORATION REPORTS NET INCOME OF $457 MILLION FOR THE FIRST QUARTER OF 2024
Loews reported net income of $457 million for the first quarter of 2024, representing a 22% increase over the same period last year. Key highlights include improvements in CNA Financial 's net income, Boardwalk Pipelines' results, and parent company investment returns. Book value per share increased to $83.68 as of March 31, 2024. The company also repurchased 0.9 million shares of its common stock for $67 million since December 31, 2023.
Net income increased by 22% over the first quarter of 2023.
Improvements in CNA Financial 's net income and Boardwalk Pipelines' results.
Book value per share increased to $83.68 as of March 31, 2024.
Repurchased 0.9 million shares of common stock for $67 million.
Loews Hotels saw a decrease in net income.
CNA experienced slightly higher net catastrophe losses affecting the Property and Casualty combined ratio.
Insights
The increase in Loews Corporation's net income to
Boardwalk Pipelines' 41% increase in net income and 20% jump in EBITDA underscore the success of strategic re-contracting and growth projects. This indicates an ability to leverage assets for higher revenue, a bullish sign for future profitability. However, investors should be mindful of industry-specific risks such as regulatory changes and commodity price volatility that could affect future performance.
Lastly, the parent company's improved investment returns and the increase in book value per share to
Loews Corporation's performance, particularly in the context of a global economy recovering from various disruptions, indicates resilience. The report provides investors with evidence of the company’s diverse portfolio strength. The positive results from the CNA and Boardwalk segments may signal to investors a well-balanced risk portfolio with a potential for consistent returns.
The increase in net investment income and favorable net prior year loss reserve development in CNA's results, contrasted with higher net catastrophe losses, suggest that while the company is managing its reserves and investments effectively, it remains exposed to unpredictable catastrophic events. The nuanced change in the Property and Casualty combined ratio, an important metric for insurance companies, warrants attention as it reflects on claims versus earned premiums balance.
For Boardwalk, the focus on strategic growth projects and re-contracting could indicate a deliberate shift towards optimizing assets and securing long-term contracts, which could contribute to stability in earnings.
First 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 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 $81.92 - As of March 31, 2024, the parent company had
$3.2 billion $1.8 billion - Loews Corporation repurchased 0.9 million shares of its common stock for a total cost of
$67 million
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
Consolidated highlights: | ||
Three Months Ended March 31, | ||
(In millions) | 2024 | 2023 |
Net Income (Loss) Attributable to Loews Corporation: | ||
CNA Financial | $ 310 | $ 268 |
Boardwalk Pipelines | 121 | 86 |
Loews Hotels & Co | 16 | 24 |
Corporate | 10 | (3) |
Net income attributable to Loews Corporation | $ 457 | $ 375 |
March 31, 2024 | December 31, 2023 | ||
Book value per share | $ 72.87 | $ 70.69 | |
Book value per share excluding AOCI | 83.68 | 81.92 |
Three months ended March 31, 2024 compared to 2023
CNA:
- Net income attributable to Loews Corporation improved
16% to$310 million $268 million - Core income increased
9% to$355 million $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 by9% . - 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 to93.9% 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 was91.0% compared to90.8% 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 $86 million - EBITDA increased
20% to$307 million $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 $24 million - Adjusted EBITDA of
$80 million $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 $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 - 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 and Conference Calls
For Loews Corporation
- Today, May 6, 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, May 6, 2024, CNA will host an earnings call at 9:00 a.m. ET.
- A live webcast will be available via the Investor Relations section of CNA's website at www.cna.com.
- To participate by phone, dial 1-844-481-2830 (
USA toll-free) or +1-412-317-1850 (International).
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 | ||
Three Months Ended March 31, | ||
(In millions) | 2024 | 2023 |
Revenues: | ||
CNA Financial (a) | $ 3,444 | $ 3,152 |
Boardwalk Pipelines | 517 | 397 |
Loews Hotels & Co | 216 | 192 |
Corporate investment income, net | 54 | 42 |
Total | $ 4,231 | $ 3,783 |
Income (Loss) Before Income Tax: | ||
CNA Financial (a) | $ 427 | $ 371 |
Boardwalk Pipelines | 162 | 116 |
Loews Hotels & Co | 28 | 34 |
Corporate: | ||
Investment income, net | 54 | 42 |
Other (b) | (42) | (44) |
Total | $ 629 | $ 519 |
Net Income (Loss) Attributable to Loews Corporation: | ||
CNA Financial (a) | $ 310 | $ 268 |
Boardwalk Pipelines | 121 | 86 |
Loews Hotels & Co | 16 | 24 |
Corporate: | ||
Investment income, net | 43 | 33 |
Other (b) | (33) | (36) |
Net income attributable to Loews Corporation | $ 457 | $ 375 |
(a) | The three months ended March 31, 2024 and 2023 include net investment losses of |
(b) | Consists of parent company interest expense, corporate expenses and the equity income (loss) of Altium Packaging. |
Loews Corporation and Subsidiaries Consolidated Financial Review | ||
Three Months Ended March 31, | ||
(In millions, except per share data) | 2024 | 2023 |
Revenues: | ||
Insurance premiums | $ 2,441 | $ 2,248 |
Net investment income | 669 | 569 |
Investment losses | (22) | (35) |
Operating revenues and other | 1,143 | 1,001 |
Total | 4,231 | 3,783 |
Expenses: | ||
Insurance claims and policyholders' benefits | 1,807 | 1,653 |
Operating expenses and other | 1,795 | 1,611 |
Total | 3,602 | 3,264 |
Income before income tax | 629 | 519 |
Income tax expense | (144) | (115) |
Net income | 485 | 404 |
Amounts attributable to noncontrolling interests | (28) | (29) |
Net income attributable to Loews Corporation | $ 457 | $ 375 |
Net income per share attributable to Loews Corporation | $ 2.05 | $ 1.61 |
Weighted average number of shares | 222.78 | 233.62 |
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:
Three Months Ended March 31, | ||
(In millions) | 2024 | 2023 |
CNA net income attributable to Loews Corporation | $ 310 | $ 268 |
Investment losses | 17 | 28 |
Noncontrolling interests | 28 | 29 |
Core income | $ 355 | $ 325 |
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:
Three Months Ended March 31, | ||
(In millions) | 2024 | 2023 |
Boardwalk net income attributable to Loews Corporation | $ 121 | $ 86 |
Interest, net | 39 | 39 |
Income tax expense | 41 | 30 |
Depreciation and amortization | 106 | 101 |
EBITDA | $ 307 | $ 256 |
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:
Three Months Ended March 31, | ||
(In millions) | 2024 | 2023 |
Loews Hotels & Co net income attributable to Loews Corporation | $ 16 | $ 24 |
Interest, net | 5 | 6 |
Income tax expense | 12 | 10 |
Depreciation and amortization | 21 | 16 |
EBITDA | 54 | 56 |
Noncontrolling interest share of EBITDA adjustments | (2) | |
Equity investment adjustments: | ||
Loews Hotels & Co's equity method income | (27) | (31) |
Pro rata Adjusted EBITDA of equity method investments | 56 | 62 |
Consolidation adjustments | (1) | (1) |
Adjusted EBITDA | $ 80 | $ 86 |
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:
Three Months Ended March 31, | ||
(In millions) | 2024 | 2023 |
Loews Hotels & Co's equity method income | $ 27 | $ 31 |
Pro rata share of equity method investments: | ||
Interest, net | 10 | 12 |
Income tax expense | ||
Depreciation and amortization | 12 | 13 |
Distributions in excess of basis | 7 | 6 |
Pro rata Adjusted EBITDA of equity method investments | $ 56 | $ 62 |
View original content:https://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-457-million-for-the-first-quarter-of-2024-302135944.html
SOURCE Loews Corporation
FAQ
<p>What was Loews 's net income for the first quarter of 2024?</p>
Loews reported a net income of $457 million for the first quarter of 2024.
<p>What was the increase in net income compared to the first quarter of 2023?</p>
The net income increased by 22% over the same period last year.
<p>What was the book value per share as of March 31, 2024?</p>
The book value per share was $83.68 as of March 31, 2024.
<p>How many shares of common stock did Loews repurchase since December 31, 2023?</p>
Loews repurchased 0.9 million shares of common stock for $67 million since December 31, 2023.
