Loews (L) - 2024 Q3 - Quarterly Report

Financial Performance - Net income attributable to Loews Corporation for Q3 2024 was $401 million, or$ 1.82 per share, compared to $253 million, or$ 1.12 per share in Q3 2023, representing a 58.5% increase in net income [160]. - For the nine months ended September 30, 2024, net income attributable to Loews Corporation was $1,227 million, or$ 5.54 per share, up from $988 million, or$ 4.31 per share in the same period of 2023, reflecting a 24.2% increase [160]. - Net income attributable to Loews Corporation for the latest quarter was $150 million, up from$ 107 million in the previous quarter, representing an increase of 40.2% [178]. - Core income for the latest quarter was $178 million, compared to$ 133 million in the previous quarter, reflecting a growth of 33.8% [178]. - The company reported a total core income of $1,098 million for the nine months ended September 30, 2024, compared to$ 974 million for the same period in the previous year, marking a 12.7% increase [181]. Insurance Operations - CNA Financial reported insurance premiums of $2,593 million for Q3 2024, an increase from$ 2,406 million in Q3 2023, marking an 7.8% growth [165]. - CNA's total revenues for the nine months ended September 30, 2024, reached $10,581 million, up from$ 9,792 million in the same period of 2023, representing an 8.0% increase [165]. - Gross written premiums for the latest quarter totaled $3,595 million, with net earned premiums at$ 2,484 million [184]. - Gross written premiums for the nine months ended September 30, 2024, totaled $11,409 million, an increase from$ 10,953 million in the comparable 2023 period [188][190]. - Net written premiums for the nine months ended September 30, 2024, reached $7,424 million, up from$ 6,938 million in the same period last year, reflecting a growth of approximately 7% [188][190]. Investment Income - Net investment income for CNA Financial increased to $626 million in Q3 2024 from$ 553 million in Q3 2023, a rise of 13.2% [165]. - Net investment income for the latest quarter was $(136) million, a decline from$ (470) million in the previous quarter [182]. - Net investment income for the nine months ended September 30, 2024, was $1,090 million, compared to$ 951 million in the same period last year, showing an increase of approximately 14.6% [188][190]. - CNA's total fixed income securities net investment income was $1,555 million for the nine months ended September 30, 2024, compared to$ 1,469 million in 2023 [266]. - CNA's net investment income increased by $73 million and$ 200 million for the three and nine months ended September 30, 2024, compared to the same periods in 2023 [266]. Catastrophe Losses - The effect of catastrophe losses in the latest quarter was $190 million, impacting overall profitability [182]. - Catastrophe losses for the three months ended September 30, 2024, were$ 143 million, up from $94 million in the same period last year, primarily due to severe weather events [195]. - Catastrophe losses for Property & Casualty Operations rose to$ 313 million for the nine months ended September 30, 2024, compared to $214 million in the same period of 2023 [205]. Operational Metrics - The loss ratio for the latest quarter was 60.1%, while the combined ratio stood at 93.0% [185]. - The loss ratio for the nine months ended September 30, 2024, was 64.9%, compared to 63.1% in the comparable 2023 period, showing a deterioration of 1.8 percentage points [189][190]. - The combined ratio for the nine months ended September 30, 2024, was 95.6%, an increase from 94.0% in the same period last year, reflecting a decline in underwriting performance [189][190]. - The expense ratio for the nine months ended September 30, 2024, was 30.3%, compared to 30.6% in the same period last year, indicating a slight improvement [189][190]. - The retention rate for the nine months ended September 30, 2024, was 85%, consistent with the previous year, reflecting stable customer loyalty [189][190]. Corporate Developments - Loews Hotels & Co reported a net loss of$ 8 million in Q3 2024, down from a net income of $17 million in Q3 2023, reflecting a significant decline [160]. - The Corporate segment recorded a net income of$ 73 million in Q3 2024, compared to a net loss of $48 million in Q3 2023, showing a turnaround [160]. - Operating revenues for Loews Hotels & Co improved by$ 100 million for the nine months ended September 30, 2024, attributed to the opening of the Loews Arlington Hotel and Convention Center and higher occupancy levels [236]. - Loews Corporation repurchased 4.6 million shares of its common stock in 2024 for a total cost of $353 million as of November 1, 2024 [248]. - CNA paid cash dividends of$ 3.32 per share during the nine months ended September 30, 2024, including a special cash dividend of $2.00 per share [251]. Capital Expenditures and Financing - Boardwalk Pipelines' capital expenditures for the nine months ended September 30, 2024, were$ 292 million, up from $232 million in 2023 [255]. - Interest expenses increased by$ 20 million for the nine months ended September 30, 2024, mainly due to pre-financing Boardwalk Pipeline's $600 million of debt maturing in December 2024 [232]. - As of September 30, 2024, Boardwalk Pipelines had$ 1.0 billion available under its revolving credit facility [256]. - Loews Hotels & Co refinanced $413 million in mortgage loans due within twelve months in 2024 [259]. Market Conditions and Risks - Forward-looking statements indicate that future financial performance is subject to various risks and uncertainties that could materially affect actual results [279]. - The company acknowledges that certain accounting estimates may be adjusted in the future based on new information and changing circumstances [276]. - CNA periodically reviews the sensitivity of its investment portfolio to foreign exchange rates and other market price changes [275]. - The company emphasizes the importance of aligning the duration of its investment portfolio with corresponding liabilities to manage interest rate risk [274].