12.7 MILLION COMMON SHARES REPURCHASED IN 2022 FOR
Fourth Quarter highlights:
- The increase in net income was driven by improved results at Boardwalk Pipelines and higher investment returns at the parent company.
- Net income at CNA declined compared to the fourth quarter of 2021 due to lower returns on limited partnership and common stock investments and higher net catastrophe losses, partially offset by improved underlying underwriting results and higher income from fixed income securities due to reinvesting at higher rates.
- Operating results at
Loews Hotels & Co improved compared to the fourth quarter of 2021 due to higher occupancy, but net income was lower due to accelerated state and local government grant payments in last year's comparable period. - Book value per share decreased to
$61.86 at year-end 2022 from$71.84 at year-end 2021, driven by the unrealized loss position in CNA's fixed income portfolio, as compared to a gain in the prior year. - Book value per share, excluding accumulated other comprehensive income (AOCI), increased to
$75.78 at year-end 2022 from$71.09 at year-end 2021. - Loews had a cash and investments balance of
$3.2 billion as ofDecember 31, 2022 .
CEO commentary:
"
–
Consolidated highlights:
|
|||||||
Three Months Ended |
Years Ended |
||||||
(In millions, except per share data) |
2022 |
2021 |
2022 |
2021 |
|||
Income before net investment gains (losses) |
$ 387 |
$ 341 |
$ 1,150 |
$ 1,066 |
|||
Net investment gains (losses): |
|||||||
CNA |
(23) |
2 |
(138) |
86 |
|||
Corporate |
426 |
||||||
Net income attributable to |
$ 364 |
$ 343 |
$ 1,012 |
$ 1,578 |
|||
Net income per share |
$ 1.53 |
$ 1.36 |
$ 4.16 |
$ 6.07 |
|||
|
|
||||||
Book value per share |
$ 61.86 |
$ 71.84 |
|||||
Book value per share excluding AOCI |
75.78 |
71.09 |
Three months ended
CNA:
- Net income attributable to
Loews Corporation declined to$223 million from$239 million . - Core income increased to
$274 million from$265 million . - Results include lower net investment income from limited partnership and common stock investments, partially offset by higher income from fixed income securities.
- Underwriting results were lower due to higher net catastrophe losses related to Winter Storm Elliott, partially offset by improved underlying underwriting income and prior year development.
- Non-economic charge related to asbestos and environmental pollution of
$25 million after tax and noncontrolling interests compared favorably to$44 million after tax and noncontrolling interests in the prior year period. - Net income was also negatively impacted by the swing from net investment gains in the prior year period to net investment losses driven by sales of fixed income securities.
- Property and Casualty combined ratio was 93.7% compared to 92.9% in the prior year period. The underlying combined ratio of 91.2% was consistent year-over-year.
- Net income increased
$18 million to$83 million compared to$65 million . - EBITDA increased
$41 million to$248 million compared to$207 million . - Net income and EBITDA increased due to higher revenues from recently completed growth projects, re-contracting at higher rates, and higher utilization-based revenues. Storage and parking and lending revenues also increased.
- Higher revenues were slightly offset by higher expenses due to an increased asset base from recently completed growth projects.
- Net income decreased
$4 million to$33 million compared to$37 million . - Net income for the prior year period benefited from
$26 million of accelerated state and local government grant payments used to retire outstanding debt. Excluding the grant payments, net income increased$22 million . - Adjusted EBITDA increased
$21 million to$85 million compared to$64 million . - Revenues increased due to improved occupancy and higher average daily room rates.
- Higher revenues were partially offset by an increase in operating expenses due to the higher demand levels and resumption of additional pre-pandemic services.
Corporate & Other:
- Net income increased
$23 million to$25 million from$2 million due to higher investment income.
Year ended
Loews reported net income of
- Net income for 2021 includes a gain of
$438 million related to the sale of 47% ofAltium Packaging and its deconsolidation onApril 1, 2021 . - Excluding the gain on sale of
Altium Packaging , net income decreased$128 million , driven by lower investment income at CNA and the parent company, offset by improved results atBoardwalk andLoews Hotels . - CNA reported a record low combined ratio of 93.2%, compared with 96.2% in the prior year. The underlying combined ratio was a record low 91.2%, compared with 91.4% in the prior year.
Loews Hotels results significantly improved due to higher occupancy and average daily room rates, as travel rebounded from the impacts of the pandemic.
Share Repurchases:
- On
December 31, 2022 , there were 236 million shares of Loews common stock outstanding. - For the three months and year ended
December 31, 2022 , Loews repurchased 2.2 million and 12.7 million shares of its common stock at an aggregate cost of$124 million and$738 million , respectively. - From
January 1, 2023 toFebruary 3, 2023 , Loews repurchased an additional 1.0 million shares of its common stock at an aggregate cost of$58 million . - For the year ended
December 31, 2022 , Loews purchased 0.7 million shares of CNA common stock for an aggregate cost of$26 million . - Depending on market conditions, Loews may from time-to-time purchase shares of its and its subsidiaries' outstanding common stock in the open market, in privately negotiated transactions or otherwise.
Reconciliation of GAAP Measures to Non-GAAP Measures
This news release contains financial measures that are not in accordance with accounting principles generally accepted in
Earnings Remarks and Conference Calls
For
– Today,
– Remarks will include commentary from Loews's president and chief executive officer, and chief financial officer.
For CNA
– Today,
– A live webcast will be available via the Investor Relations section of www.cna.com.
– To participate, dial 1-844-481-2830 (
About
Forward-Looking Statements
Statements contained in this news release which are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management of the Company. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Company's overall business and financial performance can be found in the Company's reports filed with the
Selected Financial Information |
||||
|
||||
Three Months Ended |
Years Ended |
|||
(In millions) |
2022 |
2021 |
2022 |
2021 |
Revenues: |
||||
|
$ 3,111 |
$ 3,054 |
$ 11,879 |
$ 11,908 |
Boardwalk Pipelines |
401 |
358 |
1,446 |
1,349 |
|
189 |
191 |
721 |
480 |
Investment income (loss) and other (c) (d) |
92 |
58 |
(2) |
920 |
Total |
$ 3,793 |
$ 3,661 |
$ 14,044 |
$ 14,657 |
Income (Loss) Before Income Tax: |
||||
|
$ 294 |
$ 330 |
$ 1,081 |
$ 1,484 |
Boardwalk Pipelines |
109 |
74 |
330 |
303 |
|
41 |
52 |
161 |
(12) |
Corporate: (e) |
||||
Investment income (loss), net |
92 |
59 |
(8) |
99 |
Other (d) |
(60) |
(56) |
(183) |
308 |
Total |
$ 476 |
$ 459 |
$ 1,381 |
$ 2,182 |
Net Income (Loss) Attributable to |
||||
|
$ 223 |
$ 239 |
$ 802 |
$ 1,077 |
Boardwalk Pipelines |
83 |
65 |
247 |
235 |
|
33 |
37 |
117 |
(14) |
Corporate: (e) |
||||
Investment income (loss), net |
72 |
46 |
(6) |
78 |
Other (d) |
(47) |
(44) |
(148) |
202 |
Net income attributable to |
$ 364 |
$ 343 |
$ 1,012 |
$ 1,578 |
(a) |
The three months ended |
The three months ended |
|
The year ended |
|
The year ended |
|
(b) |
Includes |
(c) |
Includes parent company investment income (loss) and the financial results of |
(d) |
Includes an investment gain of |
(e) |
The Corporate segment consists of investment income (loss) from the parent company's cash and investments, interest expense, corporate |
Consolidated Financial Review |
||||
|
||||
Three Months Ended |
Years Ended |
|||
(In millions, except per share data) |
2022 |
2021 |
2022 |
2021 |
Revenues: |
||||
Insurance premiums |
$ 2,232 |
$ 2,119 |
$ 8,667 |
$ 8,175 |
Net investment income |
600 |
610 |
1,802 |
2,259 |
Investment gains (losses) (a) |
(33) |
3 |
(199) |
660 |
Operating revenues and other |
994 |
929 |
3,774 |
3,563 |
Total |
3,793 |
3,661 |
14,044 |
14,657 |
Expenses: |
||||
Insurance claims and policyholders' benefits |
1,683 |
1,665 |
6,386 |
6,349 |
Operating expenses and other |
1,634 |
1,537 |
6,277 |
6,126 |
Total |
3,317 |
3,202 |
12,663 |
12,475 |
Income before income tax |
476 |
459 |
1,381 |
2,182 |
Income tax expense |
(88) |
(88) |
(278) |
(479) |
Net income |
388 |
371 |
1,103 |
1,703 |
Amounts attributable to noncontrolling interests |
(24) |
(28) |
(91) |
(125) |
Net income attributable to |
$ 364 |
$ 343 |
$ 1,012 |
$ 1,578 |
Net income per share attributable to |
$ 1.53 |
$ 1.36 |
$ 4.16 |
$ 6.07 |
Weighted average number of shares |
238.08 |
252.52 |
243.28 |
260.20 |
(a) |
Includes an investment gain of |
Definitions of Non-GAAP Measures and reconciliation of GAAP Measures to Non-GAAP Measures:
Core income is calculated by excluding from CNA's net income attributable to
|
||||
Three Months Ended |
Years Ended |
|||
(In millions) |
2022 |
2021 |
2022 |
2021 |
CNA net income attributable to |
$ 223 |
$ 239 |
$ 802 |
$ 1,077 |
Investment (gains) losses |
26 |
(2) |
154 |
(96) |
Consolidating adjustments including noncontrolling |
25 |
28 |
92 |
125 |
Core income |
$ 274 |
$ 265 |
$ 1,048 |
$ 1,106 |
Boardwalk Pipelines
EBITDA is defined as earnings before interest, income tax expense, depreciation and amortization. The following table presents a reconciliation of
|
||||
Three Months Ended |
Years Ended |
|||
(In millions) |
2022 |
2021 |
2022 |
2021 |
|
$ 83 |
$ 65 |
$ 247 |
$ 235 |
Interest |
40 |
40 |
166 |
161 |
Income tax expense |
26 |
9 |
83 |
68 |
Depreciation and amortization |
99 |
93 |
396 |
370 |
EBITDA |
$ 248 |
$ 207 |
$ 892 |
$ 834 |
Adjusted EBITDA is calculated by excluding from
|
||||
Three Months Ended |
Years Ended |
|||
(In millions) |
2022 |
2021 |
2022 |
2021 |
|
$ 33 |
$ 37 |
$ 117 |
$ (14) |
Interest |
4 |
11 |
11 |
36 |
Income tax expense |
8 |
15 |
44 |
2 |
Depreciation and amortization |
17 |
16 |
64 |
63 |
EBITDA |
62 |
79 |
236 |
87 |
State and local government development grants |
(39) |
(39) |
||
Net gain on dispositions |
(8) |
(8) |
||
Asset impairments |
3 |
10 |
25 |
10 |
Equity investment adjustments: |
||||
|
(33) |
(30) |
(148) |
(47) |
Pro rata Adjusted EBITDA of equity method |
54 |
48 |
234 |
128 |
Consolidating adjustments |
(1) |
4 |
(2) |
4 |
Adjusted EBITDA |
$ 85 |
$ 64 |
$ 345 |
$ 135 |
The following table presents a reconciliation of
|
||||
Three Months Ended |
Years Ended |
|||
(In millions) |
2022 |
2021 |
2022 |
2021 |
|
$ 33 |
$ 30 |
$ 148 |
$ 47 |
Pro rata share of equity method investments: |
||||
Interest |
11 |
9 |
40 |
36 |
Income tax expense |
||||
Depreciation and amortization |
12 |
12 |
50 |
50 |
Distributions in excess of the basis of equity method |
(3) |
(3) |
(4) |
(6) |
Consolidation adjustments |
1 |
1 |
||
Pro rata Adjusted EBITDA of equity method |
$ 54 |
$ 48 |
$ 234 |
$ 128 |
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SOURCE
Investor relations and media relations contact: Chris Nugent, 1-212-521-2403