01—Abstract
Summary
Summary of the 10-K filed February 11, 2025. Cited figures are marked; the original filing is the authoritative source.
Loews Corporation is a holding company with four reportable segments: CNA Financial (commercial property and casualty insurance, approximately 92%a owned), Boardwalk Pipelines (natural gas and natural gas liquids transportation and storage, wholly owned), Loews Hotels & Co (a chain of 25 hotels, wholly owned), and a Corporate segment that includes the equity method investment in Altium Packaging (approximately 53% owned).
CNA accounted for 81.5% of consolidated total revenue in 2024. For 2024, net income attributable to Loews Corporation was $1.4 billionb, or $6.41 diluted net income per share, compared with $1.4 billion, or $6.29, in 2023. Results include a $265 million after-tax and noncontrolling interests pension settlement charge at CNA; excluding that charge, the filing states net income attributable to Loews increased 17%.
The improvement was driven by higher net investment income at CNA, improved underlying underwriting results partially offset by higher catastrophe losses ($358 millionc in 2024 versus $236 million in 2023), growth at Boardwalk Pipelines from re-contracting at higher rates, growth projects and the Bayou Ethane acquisition, and higher parent-company investment income. Loews Hotels & Co's earnings declined, reflecting depreciation and interest costs from the opening of Loews Arlington Hotel and Convention Center. At year-end 2024, total assets were $81.9 billion and total shareholders' equity was $17.1 billion.
Parent Company cash and investments, net of receivables and payables, totaled $3.3 billiond, and the company repurchased $608 million of treasury stock in 2024. The filing also flags ongoing risks, including CNA's long-term care and claim reserve estimates, social inflation, reinsurance and cyber exposure (including 2024 vendor-related data breaches at CNA), Boardwalk's regulatory and environmental exposure, a Delaware class action related to the 2018 Boardwalk unit acquisition in which the Delaware Supreme Court reversed the original $690 million trial-court award and the remanded issues were decided for defendants in September 2024 with an appeal pending, and Loews Hotels & Co's concentration of hotels in Florida.
02—Key points
Key Highlights
- Net income attributable to Loews Corporation was $1.4 billion ($6.41 diluted EPS) in 2024, versus $1.4 billion ($6.29 diluted EPS) in 2023, after a $265 million after-tax and noncontrolling interests pension settlement charge at CNA.
- CNA contributed $879 million of net income attributable to Loews in 2024, down from $1,094 million, and accounted for 81.5% of consolidated total revenue.
- Boardwalk Pipelines net income attributable to Loews rose to $413 million from $283 million, with EBITDA of $1,086 million; about 86% of its 2024 revenues came from firm capacity reservation fees or minimum volume commitments.
- Boardwalk entered $6.0 billion of new firm agreements in 2024 and expects about $1.6 billion of spending on ongoing and announced growth projects with in-service dates from 2025 to 2029.
- Loews Hotels & Co net income fell to $70 million from $147 million, reflecting higher depreciation and interest from the Loews Arlington Hotel and Convention Center opening and lower joint venture equity income.
- Parent Company cash and investments totaled $3.3 billion at December 31, 2024, supported by $1.3 billion of cash dividends from subsidiaries; the company purchased $608 million of its treasury stock in 2024.
- Total assets were $81.9 billion and total shareholders' equity was $17.1 billion at December 31, 2024; the filing reports internal control over financial reporting as effective.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 11, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $17.51B$15.90B | +10.1% |
| Interest Expense | $441.00M$376.00M | +17.3% |
| Net Income | $1.41B$1.43B | −1.4% |
| EPS (Basic) | $6.42$6.30 | +1.9% |
| EPS (Diluted) | $6.41$6.29 | +1.9% |
| Shares Outstanding (Basic) | 220.26M227.48M | −3.2% |
| Shares Outstanding (Diluted) | 220.53M227.81M | −3.2% |
05—Questions
Frequently Asked Questions
What drove the change in Loews' 2024 earnings?
Net income attributable to Loews Corporation was $1.4 billion in both 2024 and 2023, with diluted EPS rising to $6.41 from $6.29. The filing states that excluding CNA's $265 million after-tax and noncontrolling interests pension settlement charge, net income attributable to Loews increased 17%, due to higher net income at CNA and Boardwalk Pipelines and higher parent-company investment income, partly offset by lower Loews Hotels & Co income.
How significant were catastrophe losses for CNA in 2024?
CNA recorded catastrophe losses, net of reinsurance, of $358 million in 2024 compared with $236 million in 2023. The filing attributes these mainly to severe weather, including $71 million for Hurricane Helene and $33 million for Hurricane Milton. Commercial lines accounted for $318 million of the 2024 total.
What is the status of the Boardwalk Pipelines Delaware class action?
The case arose from Loews' 2018 acquisition of the Boardwalk units not already owned. The Trial Court's 2021 award of approximately $690 million plus interest was reversed by the Delaware Supreme Court in December 2022 and remanded. In September 2024 the Trial Court ruled for the defendants on the remanded issues, and the plaintiffs appealed in October 2024, with briefing expected to be completed in March 2025.
What growth is expected at Boardwalk Pipelines?
Boardwalk placed about $245 million of growth projects into service in 2024, adding approximately 0.4 Bcf per day of firm transportation capacity. It expects to spend about $1.6 billion on ongoing and announced growth projects, with in-service dates from 2025 to 2029, which it says will add over 2.0 Bcf per day of firm transportation capacity.
What are the key risks for Loews investors highlighted in the filing?
Key risks include CNA's insurance reserve adequacy, particularly for long-tail lines and long-term care; social inflation; catastrophe exposure; reinsurance and investment market volatility; cyber and data breach risk, including ransomware incidents at CNA vendors in 2024; regulatory and environmental exposure at Boardwalk; and Loews Hotels & Co's concentration of hotels in Florida, with about 60% of its rooms in the state as of December 31, 2024.
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