Loews (L)2024-05-06 14:38Net Income and Financial Performance - Net income attributable to Loews Corporation for Q1 2024 was $457 million, or $2.05 per share, compared to $375 million, or $1.61 per share in Q1 2023[139] - CNA Financial's net income increased by $42 million in Q1 2024, driven by higher net investment income and favorable net prior year loss reserve development, partially offset by higher catastrophe losses[143] - Boardwalk Pipelines' net income increased to $121 million in Q1 2024 from $86 million in Q1 2023, primarily due to higher revenues from re-contracting at higher rates and recently completed growth projects[139] - Loews Hotels & Co reported a net income of $16 million in Q1 2024, down from $24 million in Q1 2023[139] - Corporate segment net income improved to $10 million in Q1 2024 from a loss of $3 million in Q1 2023[139] - Net income attributable to Loews Corporation decreased by $8 million to $16 million in Q1 2024 compared to $24 million in Q1 2023, primarily due to increased operating expenses and lower equity income from joint ventures[171][173] CNA Financial's Property & Casualty Operations - CNA's Property & Casualty Operations reported a combined ratio of 94.6% in Q1 2024, with an underlying combined ratio of 91.0%[148] - Gross written premiums for CNA's Property & Casualty Operations totaled $3.74 billion in Q1 2024, with Specialty, Commercial, and International segments contributing $1.68 billion, $1.69 billion, and $374 million respectively[148] - CNA's renewal premium change for Property & Casualty Operations was 6% in Q1 2024, with retention rates at 85%[148] - CNA's underlying loss ratio for Property & Casualty Operations was 60.5% in Q1 2024, with catastrophe impacts adding 3.8 percentage points to the loss ratio[148] - Core income for Property & Casualty Operations increased by $26 million in Q1 2024 compared to Q1 2023, driven by higher net investment income and favorable net prior year loss reserve development[152] - Catastrophe losses for Property & Casualty Operations were $88 million in Q1 2024, up from $52 million in Q1 2023[152] Gross Written Premiums by Segment - Gross written premiums for Specialty decreased by $6 million in Q1 2024 compared to Q1 2023, driven by lower new business, partially offset by favorable rates[149] - Gross written premiums for Commercial increased by $244 million in Q1 2024 compared to Q1 2023, driven by favorable renewal premium changes and higher new business[150] - Gross written premiums for International decreased by $24 million in Q1 2024 compared to Q1 2023, with a $31 million decrease excluding foreign currency effects[151] Combined Ratios by Segment - Specialty's combined ratio increased by 0.7 points in Q1 2024 compared to Q1 2023, driven by higher acquisition costs and an increase in the underlying loss ratio[154] - Commercial's combined ratio increased by 1.6 points in Q1 2024 compared to Q1 2023, primarily due to higher catastrophe losses[155] - International's combined ratio improved by 3.9 points in Q1 2024 compared to Q1 2023, driven by a 5.3 point improvement in the loss ratio[156] Investment Income and Portfolio Performance - CNA's net investment income increased to $609 million in Q1 2024 from $525 million in Q1 2023[143] - CNA's net investment income increased by $84 million to $609 million for Q1 2024, driven by higher returns from limited partnerships and common stocks, and favorable reinvestment rates in fixed income securities[194] - The effective income yield for CNA's fixed income securities portfolio rose to 4.7% in Q1 2024, up from 4.6% in Q1 2023[194] - Limited partnership and common stock returns improved significantly to 2.9% in Q1 2024, compared to 1.3% in Q1 2023[194] - CNA's pretax investment losses decreased by $13 million to $16 million in Q1 2024, primarily due to favorable changes in the fair value of non-redeemable preferred stock[196] - The total fair value of CNA's fixed maturity securities increased to $40.605 billion in Q1 2024, with net unrealized losses rising to $2.253 billion[199] - AAA-rated securities in CNA's fixed maturity portfolio included $0.2 billion of pre-funded municipal bonds as of March 31, 2024[199] - CNA's available-for-sale fixed maturity securities in a gross unrealized loss position totaled $27.012 billion, with $3.096 billion in unrealized losses as of March 31, 2024[201] - The effective duration of CNA's total investment portfolio decreased slightly to 6.4 years in Q1 2024, compared to 6.5 years at the end of 2023[207] - CNA's Life & Group portfolio had an effective duration of 10.0 years in Q1 2024, down from 10.2 years at the end of 2023[207] - The Property & Casualty and other portfolio maintained a stable effective duration of 4.5 years in Q1 2024[207] Cash Flow and Financial Activities - Parent Company cash and investments increased to $3.2 billion at March 31, 2024, compared to $2.6 billion at December 31, 2023, driven by $656 million in cash dividends from subsidiaries[179] - CNA's cash provided by operating activities increased by $68 million to $504 million in Q1 2024 compared to $436 million in Q1 2023, driven by higher premiums collected and distributions from limited partnerships[181] - Boardwalk Pipelines' cash provided by operating activities increased by $43 million in Q1 2024 compared to Q1 2023, primarily due to changes in net income adjusted for depreciation and amortization[185] - Loews Hotels & Co received $23 million from the sale of an owned hotel in Q1 2024 and agreed to acquire noncontrolling equity interest in another hotel for $30 million, completed on April 1, 2024[187] - CNA completed a public offering of $500 million in 5.1% senior notes due February 15, 2034, to retire $550 million in 4.0% senior notes due May 2024[184] - Boardwalk Pipelines completed a public offering of $600 million in 5.6% senior notes due August 1, 2034, and has $1.0 billion available under its revolving credit facility[186] Other Financial Metrics and Developments - Core results for Other Insurance Operations improved by $4 million in Q1 2024 compared to Q1 2023, primarily due to higher net investment income[158] - Boardwalk Pipelines' EBITDA increased by $51 million in Q1 2024 compared to Q1 2023, driven by higher transportation revenues and the Bayou Ethane acquisition[165] - Operating revenue increased by $28 million to $183 million in Q1 2024 compared to $155 million in Q1 2023, driven by higher occupancy levels and food and beverage revenues[171][172] - Equity income from joint ventures decreased by $4 million to $27 million in Q1 2024 compared to $31 million in Q1 2023, driven by reduced occupancy levels at joint venture hotels[173] - Depreciation and amortization increased by $5 million to $21 million in Q1 2024 compared to $16 million in Q1 2023, mainly due to the opening of the Loews Arlington Hotel and Convention Center[173] Forward-Looking Statements and Risks - Forward-looking statements include projections of future results, events, performance, or achievements, and may contain terms like "expect," "intend," "plan," "anticipate," "estimate," and "believe"[211] - Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated or projected[211] - Investors should not place undue reliance on forward-looking statements due to inherent risks and uncertainties[212] - The company and its subsidiaries disclaim any obligation to update forward-looking statements to reflect changes in expectations, beliefs, or circumstances[212]