Loews (L) - 2025 Q2 - Quarterly Results

Financial Performance Overview Second Quarter 2025 Performance Loews Corporation's net income for the second quarter of 2025 increased to $391 million, or $1.87 per share, compared to $369 million, or $1.67 per share, in the same period of 2024, driven by improved performance in Boardwalk Pipelines and Corporate segments offsetting declines at CNA Financial and Loews Hotels Net Income and Per Share Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income (in millions) | $391 | $369 | | Net Income per Share | $1.87 | $1.67 | Segment Net Income | Segment Net Income (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | CNA Financial | $274 | $291 | | Boardwalk Pipelines | $88 | $70 | | Loews Hotels & Co | $28 | $35 | | Corporate | $1 | $(27) | Six Months 2025 Performance For the first six months of 2025, net income attributable to Loews Corporation was $761 million, or $3.61 per share, a decrease from $826 million, or $3.72 per share, in the first half of 2024, mainly due to lower net income from CNA Financial and Loews Hotels Net Income and Per Share Performance | Metric | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Net Income (in millions) | $761 | $826 | | Net Income per Share | $3.61 | $3.72 | Segment Net Income | Segment Net Income (in millions) | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | CNA Financial | $526 | $601 | | Boardwalk Pipelines | $240 | $191 | | Loews Hotels & Co | $28 | $51 | | Corporate | $(33) | $(17) | Key Metrics and Financial Position As of June 30, 2025, the company's book value per share increased to $84.42 from $79.49 at year-end 2024, with the parent company maintaining a strong balance sheet holding $3.4 billion in cash and investments and $1.8 billion of debt Book Value Per Share | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Book value per share | $84.42 | $79.49 | | Book value per share excluding AOCI | $91.66 | $88.18 | - The parent company held $3.4 billion in cash and investments and had $1.8 billion of debt as of June 30, 2025[4] - Shares of common stock outstanding decreased to 207.5 million as of June 30, 2025, from 214.7 million at the end of 2024, reflecting share repurchase activity[3] Segment Performance Analysis CNA Financial CNA's Q2 net income attributable to Loews decreased to $274 million from $291 million year-over-year, driven by unfavorable development in legacy mass tort abuse reserves and higher investment losses, partially offset by a 3% increase in core income, higher net investment income, and improved Property and Casualty (P&C) underwriting results, with the P&C combined ratio improving slightly to 94.1% from 94.8% - Q2 net income decreased due to unfavorable prior year loss reserve development related to legacy mass tort abuse reserves and higher investment losses[4][6] - Positive factors included higher net investment income from a larger asset base and favorable reinvestment rates, and a 6% growth in net written premiums[6] Property & Casualty Key Metrics | P&C Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Combined Ratio | 94.1% | 94.8% | | Underlying Combined Ratio | 91.7% | 91.6% | | Catastrophe Losses (in millions) | $62 | $82 | Boardwalk Pipelines Boardwalk Pipelines reported strong year-over-year growth, with Q2 net income rising to $88 million from $70 million and EBITDA increasing 14% to $274 million, attributed to higher transportation revenues from favorable re-contracting rates and contributions from recently completed growth projects - Net income and EBITDA improved due to increased transportation revenues from higher re-contracting rates and recently completed growth projects[4][6] Boardwalk Pipelines Financial Performance | Metric (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $88 | $70 | | EBITDA | $274 | $240 | Loews Hotels & Co Loews Hotels' Q2 net income decreased to $28 million from $35 million year-over-year, primarily due to lower equity income from joint ventures impacted by increased expenses at three new hotels, despite Adjusted EBITDA growing 11% to $109 million driven by the new hotels' opening and growth in average daily rates - Net income decreased mainly due to lower equity income from joint ventures, driven by higher expenses (including depreciation and interest) related to three new hotels at Universal Orlando Resort[4][6] - Adjusted EBITDA increased 11% to $109 million, reflecting contributions from the new hotels, growth in average daily rate (ADR), and an increase in occupied room nights[6] Corporate Segment The Corporate segment showed a significant turnaround in the second quarter, reporting net income of $1 million compared to a net loss of $27 million in the prior-year period, primarily resulting from higher investment income from the parent company's trading portfolio - The segment's results improved from a $27 million loss to a $1 million profit, driven by higher investment income from the parent company trading portfolio[4][6] Shareholder Activities Share Repurchases Loews Corporation continued its share repurchase program, buying back 2.9 million shares for $251 million in the second quarter of 2025, and an additional 0.1 million shares for $9 million subsequent to the quarter's end - During Q2 2025, Loews repurchased 2.9 million shares of its common stock for a total cost of $251 million[4][11] - Between July 1, 2025, and August 1, 2025, an additional 0.1 million shares were repurchased for $9 million[11] - As of June 30, 2025, there were 207.5 million shares of Loews common stock outstanding[11] Consolidated Financial Statements Selected Financial Information For Q2 2025, total revenues increased to $4.56 billion from $4.27 billion in Q2 2024, with revenue growth across all major segments, and total income before tax rose to $539 million from $507 million over the same period Consolidated Revenues by Segment | Revenues (in millions) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | CNA Financial | $3,717 | $3,519 | $7,344 | $6,963 | | Boardwalk Pipelines | $537 | $488 | $1,159 | $1,005 | | Loews Hotels & Co | $254 | $251 | $499 | $467 | | Total | $4,555 | $4,267 | $9,049 | $8,498 | Consolidated Income Before Tax by Segment | Income Before Tax (in millions) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | CNA Financial | $380 | $402 | $729 | $829 | | Boardwalk Pipelines | $117 | $94 | $319 | $256 | | Loews Hotels & Co | $39 | $44 | $43 | $72 | | Total | $539 | $507 | $1,053 | $1,136 | Consolidated Financial Review The consolidated income statement for Q2 2025 shows total revenues of $4.56 billion and net income attributable to Loews Corporation of $391 million, compared to revenues of $4.27 billion and net income of $369 million in the prior-year quarter Consolidated Income Statement Summary | Consolidated Income Statement (in millions) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $4,555 | $4,267 | $9,049 | $8,498 | | Total Expenses | $4,016 | $3,760 | $7,996 | $7,362 | | Income before income tax | $539 | $507 | $1,053 | $1,136 | | Net income attributable to Loews Corp. | $391 | $369 | $761 | $826 | Non-GAAP Financial Measures CNA Financial Reconciliation CNA's Core Income, a non-GAAP measure excluding investment gains/losses, was $335 million for Q2 2025, up from $326 million in Q2 2024, while the Underlying Combined Ratio, which excludes catastrophe losses and development items, was stable at 91.7% compared to 91.6% in the prior year CNA Financial Core Income Reconciliation | Reconciliation to Core Income (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | CNA net income attributable to Loews | $274 | $291 | | Investment losses | $36 | $9 | | Noncontrolling interests | $25 | $26 | | Core income | $335 | $326 | CNA Financial Underlying Combined Ratio Reconciliation | Reconciliation to Underlying Combined Ratio | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Combined ratio | 94.1% | 94.8% | | Less: Effect of catastrophe impacts | 2.4% | 3.5% | | Less: Effect of development-related items | 0.0% | (0.3%) | | Underlying combined ratio | 91.7% | 91.6% | Boardwalk Pipelines Reconciliation Boardwalk Pipelines' EBITDA, a non-GAAP measure, is reconciled from its net income, showing an increase to $274 million in Q2 2025 from $240 million in Q2 2024, reflecting strong operational performance Boardwalk Pipelines EBITDA Reconciliation | Reconciliation to EBITDA (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Boardwalk net income | $88 | $70 | | Interest, net | $37 | $38 | | Income tax expense | $29 | $24 | | Depreciation and amortization | $120 | $108 | | EBITDA | $274 | $240 | Loews Hotels & Co Reconciliation Loews Hotels' Adjusted EBITDA, a non-GAAP measure, increased to $109 million in Q2 2025 from $98 million in Q2 2024, with its reconciliation from net income including adjustments for interest, taxes, depreciation, and equity investment performance Loews Hotels & Co Adjusted EBITDA Reconciliation | Reconciliation to Adjusted EBITDA (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Loews Hotels net income | $28 | $35 | | Interest, net | $16 | $12 | | Income tax expense | $11 | $9 | | Depreciation and amortization | $24 | $24 | | Equity investment adjustments & other | $30 | $18 | | Adjusted EBITDA | $109 | $98 |