Loews (US:L)2025-08-04 14:03Part I. Financial Information Item 1. Financial Statements (Unaudited) Presents Loews Corporation's unaudited consolidated financial statements, including balance sheets, statements of operations, cash flows, and detailed notes Consolidated Condensed Balance Sheets | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $84,668 million | $81,943 million | | Total Liabilities | $66,279 million | $64,006 million | | Total Equity | $18,389 million | $17,937 million | Consolidated Condensed Statements of Operations | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $4,555 million | $4,267 million | | Net Income | $416 million | $395 million | | Net Income Attributable to Loews | $391 million | $369 million | | Diluted Net Income Per Share | $1.87 | $1.67 | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $9,049 million | $8,498 million | | Net Income | $808 million | $880 million | | Net Income Attributable to Loews | $761 million | $826 million | | Diluted Net Income Per Share | $3.61 | $3.72 | Consolidated Condensed Statements of Cash Flows | Cash Flow Activity (Six Months Ended June 30) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $1,742 million | $1,150 million | | Net Cash Used by Investing Activities | ($1,013 million) | ($1,276 million) | | Net Cash Provided by (Used by) Financing Activities | ($842 million) | $200 million | Notes to Consolidated Condensed Financial Statements - Loews Corporation is a holding company with consolidated operating subsidiaries in commercial property and casualty insurance (CNA, ~92% owned), natural gas transportation and storage (Boardwalk Pipelines, wholly owned), and hotels (Loews Hotels & Co, wholly owned). It also owns approximately 53% of Altium Packaging, accounted for under the equity method20 - Catastrophe losses, net of reinsurance, were $62 million for Q2 2025, down from $82 million in Q2 2024. For the six-month period, they were $159 million in 2025 compared to $170 million in 202457 - For the six months ended June 30, 2025, Loews Corporation repurchased 7.4 million shares of its common stock at an aggregate cost of $633 million97 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management analyzes financial performance across segments, detailing revenue and income drivers, liquidity, and investment portfolio performance Consolidated Financial Results - Q2 2025 net income attributable to Loews Corporation increased to $391 million ($1.87/share) from $369 million ($1.67/share) in Q2 2024. The increase was primarily driven by higher net income at Boardwalk Pipelines and improved investment income at the parent company138139 - For the six months ended June 30, 2025, net income attributable to Loews Corporation decreased to $761 million ($3.61/share) from $826 million ($3.72/share) in the prior year period. The decrease was mainly due to lower net income at CNA and Loews Hotels & Co138140 CNA Financial - CNA's net income attributable to Loews decreased in Q2 and the first six months of 2025 compared to 2024. This was primarily due to unfavorable net prior year loss reserve development, particularly related to legacy mass tort abuse reserves, and higher investment losses. These negative impacts were partially offset by higher net investment income and improved underlying underwriting results in its commercial property and casualty operations144145 - Core results for CNA's Other Insurance Operations decreased significantly due to an $88 million after-tax charge in Q2 2025 for unfavorable prior year loss reserve development associated with legacy mass tort abuse reserves, compared to a $28 million charge in Q2 2024179 Boardwalk Pipelines - Net income and EBITDA increased for both the three and six-month periods ended June 30, 2025, driven by increased transportation revenues from re-contracting at higher rates and recently completed growth projects194195198199 - As of June 30, 2025, Boardwalk has growth projects with executed agreements expected to increase capacity by 2.6 Bcf/d at an aggregate cost of approximately $1.7 billion, scheduled for completion through 2029182 | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Income | $88 million | $70 million | | EBITDA | $274 million | $240 million | Loews Hotels & Co - Net income decreased by $7 million for Q2 2025 and $23 million for the six months ended June 30, 2025, compared to the prior year periods. The decline was primarily driven by lower equity income from joint ventures due to increased expenses related to three new hotels at Universal Orlando Resort and a $9 million impairment charge at another joint venture property204206 Corporate - Corporate segment reported net income of $1 million in Q2 2025, a significant improvement from a net loss of $27 million in Q2 2024. The change was primarily due to a $38 million increase in net investment income from the Parent Company's trading portfolio210211 Liquidity and Capital Resources - The Parent Company's cash and investments totaled $3.4 billion at June 30, 2025. During the first six months of 2025, it received $875 million in dividends from subsidiaries ($725 million from CNA, $150 million from Boardwalk)212 - The company repurchased 7.4 million shares of its common stock for $627 million during the first six months of 2025213 Item 3. Quantitative and Qualitative Disclosures about Market Risk No material changes occurred in the company's market risk components since the 2024 Annual Report on Form 10-K - There were no material changes in market risk components from those discussed in the 2024 Annual Report on Form 10-K252 Item 4. Controls and Procedures Management confirmed effective disclosure controls and procedures with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025254 - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control255 Part II. Other Information Item 1. Legal Proceedings Details legal proceedings, including antitrust class actions and litigation, with no expected material impact on the company - Information on legal proceedings is provided in Note 9 to the Consolidated Condensed Financial Statements257 Item 1A. Risk Factors No material changes to the company's risk factors were reported since the 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024258 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Provides a monthly breakdown of the company's common stock repurchases during the second quarter of 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 651,700 | $81.63 | | May 2025 | 1,250,538 | $88.09 | | June 2025 | 992,653 | $88.35 | Item 6. Exhibits Lists exhibits filed with the report, including incentive plans, officer certifications, and XBRL data files - Lists exhibits filed with the report, including certifications by the CEO and CFO, the Loews Corporation 2025 Incentive Compensation Plan, and XBRL data files262