First Quarter highlights:
- The increase in net income was driven by higher investment returns at the Parent Company and improved results at
Loews Hotels & Co. - CNA posted higher net investment income and a record high quarter of underlying underwriting income, partially offset by higher catastrophe losses, unfavorable prior year loss reserve development, and higher investment losses.
- Net income at Boardwalk Pipelines was relatively unchanged, as higher revenues were offset by an increase in maintenance costs.
- Loews repurchased 8.2 million shares for a total cost of
$486 million , which represents nearly 3.5% of its shares outstanding at the beginning of the quarter. - Book value per share increased to
$63.41 atMarch 31, 2023 , from$60.81 atDecember 31, 2022 due to repurchases of common shares and operating results during the quarter. - Book value per share, excluding accumulated other comprehensive income (AOCI), increased to
$76.84 atMarch 31, 2023 , from$74.88 atDecember 31, 2022 . - Loews cash and investments balance was
$3.1 billion as ofMarch 31, 2023 .
CEO commentary:
"Our subsidiaries performed well this quarter.
–
Consolidated highlights: |
||
Three Months Ended |
||
(In millions, except per share data) |
2023 |
2022 (a) |
Income before net investment losses |
$ 400 |
$ 325 |
Net investment losses: |
||
CNA |
(25) |
(3) |
Net income attributable to Loews Corporation |
$ 375 |
$ 322 |
Net income per share |
$ 1.61 |
$ 1.29 |
|
|
||
Book value per share |
$ 63.41 |
$ 60.81 |
|
Book value per share excluding AOCI |
76.84 |
74.88 |
(a) |
As of |
Three months ended
CNA:
- Net income attributable to
Loews Corporation improved to$268 million from$265 million . - Core income increased to
$325 million from$298 million . - Results include higher net investment income from fixed income securities and limited partnership and common stock investments.
- Underwriting results were lower due to higher net catastrophe losses and unfavorable net prior year loss reserve development partially offset by improved underlying underwriting income.
- Net income was negatively impacted by higher investment losses driven by sales of fixed income securities.
- Property and Casualty combined ratio was 93.9% compared to 91.9% in the prior year period. The underlying combined ratio was 90.8% compared to 91.4% in the prior year period.
- Net income decreased
$5 million to$86 million compared to$91 million . - EBITDA decreased
$2 million to$256 million compared to$258 million . - Net income and EBITDA decreased due to increased repairs and maintenance costs associated with pipeline safety regulatory requirements partially offset by 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.
- Net income increased
$9 million to$24 million compared to$15 million . - Adjusted EBITDA increased
$19 million to$86 million compared to$67 million . - Revenues increased due to improved occupancy and higher average daily room rates at many hotels.
- Higher revenues were partially offset by an increase in operating expenses due to higher demand levels.
Corporate & Other:
- Net loss improved
$46 million to$3 million from$49 million due to higher net investment income.
Share Repurchases:
- On
March 31, 2023 , there were 228 million shares of Loews common stock outstanding. - For the three months ended
March 31, 2023 , Loews repurchased 8.2 million shares of its common stock at an aggregate cost of$486 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
|
||
Three Months Ended |
||
(In millions) |
2023 |
2022 |
Revenues: |
||
|
$ 3,152 |
$ 2,885 |
Boardwalk Pipelines |
397 |
381 |
|
192 |
152 |
Investment income (loss) (b) |
42 |
(16) |
Total |
$ 3,783 |
$ 3,402 |
Income (Loss) Before Income Tax: |
||
|
$ 371 |
$ 355 |
Boardwalk Pipelines |
116 |
122 |
|
34 |
22 |
Corporate: (d) |
||
Investment income (loss), net |
42 |
(16) |
Other |
(44) |
(44) |
Total (c) |
$ 519 |
$ 439 |
Net Income (Loss) Attributable to |
||
|
$ 268 |
$ 265 |
Boardwalk Pipelines |
86 |
91 |
|
24 |
15 |
Corporate: (d) |
||
Investment income (loss), net |
33 |
(13) |
Other |
(36) |
(36) |
Net income attributable to |
$ 375 |
$ 322 |
(a) |
The three months ended |
(b) |
Includes investment income (loss) from the parent company's cash and investments. |
(c) |
The effects of adopting ASU 2018-12 on the Selected Financial Information were as follows: |
Three Months Ended |
As Reported |
Effect of Adoption |
As Adjusted |
||
(In millions) |
|||||
Income (Loss) Before Income Tax: |
|||||
|
$ 378 |
$ (23) |
$ 355 |
||
Total |
462 |
(23) |
439 |
||
Net Income (Loss) Attributable to |
|||||
|
$ 281 |
$ (16) |
$ 265 |
||
Total |
338 |
(16) |
322 |
(d) |
The Corporate segment consists of investment income (loss) from the parent company's cash and investments, interest expense, corporate expenses, and the equity income (loss) of |
|
||
Three Months Ended |
||
(In millions, except per share data) |
2023 |
2022 |
Revenues: |
||
Insurance premiums |
$ 2,248 |
$ 2,059 |
Net investment income |
569 |
432 |
Investment losses |
(35) |
(11) |
Operating revenues and other |
1,001 |
922 |
Total |
3,783 |
3,402 |
Expenses: |
||
Insurance claims and policyholders' benefits (a) |
1,653 |
1,478 |
Operating expenses and other |
1,611 |
1,485 |
Total |
3,264 |
2,963 |
Income before income tax (a) |
519 |
439 |
Income tax expense (a) |
(115) |
(87) |
Net income (a) |
404 |
352 |
Amounts attributable to noncontrolling interests (a) |
(29) |
(30) |
Net income attributable to |
$ 375 |
$ 322 |
Net income per share attributable to |
$ 1.61 |
$ 1.29 |
Weighted average number of shares |
233.62 |
248.48 |
(a) |
The effects of adopting ASU 2018-12 on the Consolidated Financial Review were as follows: |
Three Months Ended |
As Reported |
Effect of |
As Adjusted |
||
(In millions) |
|||||
Insurance claims and policyholders' benefits |
$ 1,455 |
$ 23 |
$ 1,478 |
||
Income before income tax |
462 |
(23) |
439 |
||
Income tax expense |
(92) |
5 |
(87) |
||
Net income |
370 |
(18) |
352 |
||
Amounts attributable to noncontrolling interests |
(32) |
2 |
(30) |
||
Net income attributable to |
338 |
(16) |
322 |
||
Net income per share attributable to |
1.36 |
(0.07) |
1.29 |
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 |
||
(In millions) |
2023 |
2022 |
CNA net income attributable to Loews Corporation |
$ 268 |
$ 265 |
Investment losses |
28 |
3 |
Consolidating adjustments including noncontrolling interests |
29 |
30 |
Core income |
$ 325 |
$ 298 |
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 |
||
(In millions) |
2023 |
2022 |
|
$ 86 |
$ 91 |
Interest |
39 |
42 |
Income tax expense |
30 |
31 |
Depreciation and amortization |
101 |
94 |
EBITDA |
$ 256 |
$ 258 |
Adjusted EBITDA is calculated by excluding from
The following table presents a reconciliation of
Three Months Ended |
||
(In millions) |
2023 |
2022 |
|
$ 24 |
$ 15 |
Interest |
6 |
4 |
Income tax expense |
10 |
7 |
Depreciation and amortization |
16 |
15 |
EBITDA |
56 |
41 |
Equity investment adjustments: |
||
|
(31) |
(26) |
Pro rata Adjusted EBITDA of equity method investments |
62 |
53 |
Consolidating adjustments |
(1) |
(1) |
Adjusted EBITDA |
$ 86 |
$ 67 |
The following table presents a reconciliation of
Three Months Ended |
||
(In millions) |
2023 |
2022 |
|
$ 31 |
$ 26 |
Pro rata share of equity method investments: |
||
Interest |
12 |
9 |
Income tax expense |
||
Depreciation and amortization |
13 |
12 |
Distributions in excess of basis |
6 |
5 |
Consolidation adjustments |
1 |
|
Pro rata Adjusted EBITDA of equity method investments |
$ 62 |
$ 53 |
View original content:https://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-375-million-for-the-first-quarter-of-2023-301811251.html
SOURCE
INVESTOR AND MEDIA CONTACT: Chris Nugent, 1-212-521-2403