Loews Corporation (L) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $369 million ($1.67/share), up from $360 million ($1.58/share) in Q2 2023; six-month net income was $826 million ($3.72/share), up from $735 million ($3.19/share) year-over-year, driven by CNA and Boardwalk Pipelines.

• Book value per share, excluding AOCI, increased to $85.42 as of June 30, 2024, from $81.92 at year-end 2023, reflecting strong operating results and share repurchases.

• Loews is a diversified holding company with interests in insurance, energy, hospitality, and packaging, maintaining a long-term view and a strong balance sheet.

• Major subsidiaries include CNA Financial (92% ownership), Boardwalk Pipelines (100%), Loews Hotels & Co (100%), and Altium Packaging (53%).

• Emphasis on conservative financial management, prudent capital allocation, and consistent dividends from subsidiaries.

Financial highlights

• Q2 2024 revenues were $4.27 billion, up from $3.93 billion in Q2 2023; six-month revenues were $8.50 billion, up from $7.72 billion year-over-year.

• Net investment income rose to $639 million in Q2 2024 from $592 million in Q2 2023; six-month net investment income was $1.31 billion, up from $1.16 billion.

• CNA Financial reported 2023 revenue of $13.3 billion, core income of $1.28 billion, and net income of $1.2 billion.

• Boardwalk Pipelines generated $1.62 billion in revenue and $929 million in EBITDA for 2023.

• Loews Hotels & Co achieved $328 million in adjusted EBITDA for 2023, with 16,752 system-wide guest rooms as of June 30, 2024.

Segment performance

• CNA: Q2 net income attributable to Loews rose 14% to $291 million; core income up 6% to $326 million; net written premiums grew 6%; combined ratio increased to 94.8% due to higher catastrophe losses.

• Boardwalk: Q2 net income up 23% to $70 million; EBITDA up 13% to $240 million, driven by higher re-contracting rates, growth projects, and Bayou Ethane acquisition.

• Loews Hotels: Q2 net income was $35 million vs. $74 million in Q2 2023 (which included a $36 million gain); Adjusted EBITDA was $98 million vs. $100 million; lower equity income from joint ventures and higher expenses impacted results.

• Altium Packaging operates 70 production facilities and is the second largest recycled HDPE producer in the U.S.

• Corporate & Other: Q2 net loss of $27 million, slightly higher than $26 million in Q2 2023, mainly due to lower investment income.