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Loews (L) - 2024 Q1 - Quarterly Report
LLoews (L)2024-05-06 14:38

Net Income and Financial Performance - Net income attributable to Loews Corporation for Q1 2024 was 457million,or457 million, or 2.05 per share, compared to 375million,or375 million, or 1.61 per share in Q1 2023[139] - CNA Financial's net income increased by 42millioninQ12024,drivenbyhighernetinvestmentincomeandfavorablenetprioryearlossreservedevelopment,partiallyoffsetbyhighercatastrophelosses[143]−BoardwalkPipelines′netincomeincreasedto42 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 24millioninQ12023[139]−Corporatesegmentnetincomeimprovedto24 million in Q1 2023[139] - Corporate segment net income improved to 10 million in Q1 2024 from a loss of 3millioninQ12023[139]−NetincomeattributabletoLoewsCorporationdecreasedby3 million in Q1 2023[139] - Net income attributable to Loews Corporation decreased by 8 million to 16millioninQ12024comparedto16 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 3.74billioninQ12024,withSpecialty,Commercial,andInternationalsegmentscontributing3.74 billion in Q1 2024, with Specialty, Commercial, and International segments contributing 1.68 billion, 1.69billion,and1.69 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 52millioninQ12023[152]GrossWrittenPremiumsbySegment−GrosswrittenpremiumsforSpecialtydecreasedby52 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 244millioninQ12024comparedtoQ12023,drivenbyfavorablerenewalpremiumchangesandhighernewbusiness[150]−GrosswrittenpremiumsforInternationaldecreasedby244 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 31milliondecreaseexcludingforeigncurrencyeffects[151]CombinedRatiosbySegment−Specialty′scombinedratioincreasedby0.7pointsinQ12024comparedtoQ12023,drivenbyhigheracquisitioncostsandanincreaseintheunderlyinglossratio[154]−Commercial′scombinedratioincreasedby1.6pointsinQ12024comparedtoQ12023,primarilyduetohighercatastrophelosses[155]−International′scombinedratioimprovedby3.9pointsinQ12024comparedtoQ12023,drivenbya5.3pointimprovementinthelossratio[156]InvestmentIncomeandPortfolioPerformance−CNA′snetinvestmentincomeincreasedto31 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 525millioninQ12023[143]−CNA′snetinvestmentincomeincreasedby525 million in Q1 2023[143] - CNA's net investment income increased by 84 million to 609millionforQ12024,drivenbyhigherreturnsfromlimitedpartnershipsandcommonstocks,andfavorablereinvestmentratesinfixedincomesecurities[194]−TheeffectiveincomeyieldforCNA′sfixedincomesecuritiesportfolioroseto4.7609 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 16millioninQ12024,primarilyduetofavorablechangesinthefairvalueofnon−redeemablepreferredstock[196]−ThetotalfairvalueofCNA′sfixedmaturitysecuritiesincreasedto16 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 2.253billion[199]−AAA−ratedsecuritiesinCNA′sfixedmaturityportfolioincluded2.253 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 27.012billion,with27.012 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 3.2billionatMarch31,2024,comparedto3.2 billion at March 31, 2024, compared to 2.6 billion at December 31, 2023, driven by 656millionincashdividendsfromsubsidiaries[179]−CNA′scashprovidedbyoperatingactivitiesincreasedby656 million in cash dividends from subsidiaries[179] - CNA's cash provided by operating activities increased by 68 million to 504millioninQ12024comparedto504 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 30million,completedonApril1,2024[187]−CNAcompletedapublicofferingof30 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 550millionin4.0550 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 1.0billionavailableunderitsrevolvingcreditfacility[186]OtherFinancialMetricsandDevelopments−CoreresultsforOtherInsuranceOperationsimprovedby1.0 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 51millioninQ12024comparedtoQ12023,drivenbyhighertransportationrevenuesandtheBayouEthaneacquisition[165]−Operatingrevenueincreasedby51 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 183millioninQ12024comparedto183 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 4millionto4 million to 27 million in Q1 2024 compared to 31millioninQ12023,drivenbyreducedoccupancylevelsatjointventurehotels[173]−Depreciationandamortizationincreasedby31 million in Q1 2023, driven by reduced occupancy levels at joint venture hotels[173] - Depreciation and amortization increased by 5 million to 21millioninQ12024comparedto21 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]