Loews Corporation (L) Q3 2024 earnings summary

Executive summary

• Net income attributable to Loews rose to $401 million ($1.82/share) for Q3 2024, up from $253 million ($1.12/share) in Q3 2023, with nine-month net income at $1.23 billion ($5.54/share), up from $988 million ($4.31/share) year-over-year.

• Growth was driven by higher net investment income at CNA, increased revenues at Boardwalk Pipelines, and improved parent company investment results, partially offset by lower results at Loews Hotels & Co due to an impairment charge.

• Book value per share excluding AOCI increased to $87.22 as of September 30, 2024, from $81.92 at year-end 2023.

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

• The company emphasizes conservative financial management, prudent capital allocation, and consistent dividends from subsidiaries.

Financial highlights

• Q3 2024 revenues were $4.47 billion, up from $3.93 billion in Q3 2023; nine-month revenues reached $12.96 billion, up from $11.64 billion year-over-year.

• Net investment income for Q3 2024 was $776 million, up from $592 million in Q3 2023; nine-month net investment income was $2.08 billion, up from $1.75 billion.

• CNA Financial reported 2023 revenue of $13.3 billion, core income of $1.28 billion, and net income of $1.21 billion.

• Boardwalk Pipelines generated $1.62 billion in revenue and $929 million in EBITDA for 2023; Q3 2024 EBITDA was $249 million, up from $202 million.

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

Outlook and guidance

• CNA expects continued premium growth and investment income, but remains cautious due to catastrophe risk and long-term care reserve variability.

• Boardwalk Pipelines anticipates stable fee-based revenues and sufficient capital resources to fund operations and retire maturing debt.

• Loews Hotels & Co expects continued recovery in group travel and occupancy, with refinancing plans for upcoming loan maturities.

• Management notes favorable industry tailwinds for Boardwalk and strong performance at CNA despite elevated catastrophe losses.

• Forward-looking statements caution about risks and uncertainties that could impact future results.