01—Abstract
Summary
Summary of the 10-Q filed May 6, 2024. Cited figures are marked; the original filing is the authoritative source.
Loews Corporation reported net income attributable to Loews Corporation of $457 milliona, or $2.05 per share, for the three months ended March 31, 2024, compared with $375 million, or $1.61 per share, in the prior-year period.
Total revenues rose to $4.231 billionb from $3.783 billion. The increase was driven primarily by higher net income at CNA Financial and Boardwalk Pipelines. CNA's increase reflected higher net investment income and favorable net prior year loss reserve development, partly offset by higher catastrophe losses of $88 million versus $52 million.
Boardwalk Pipelines benefited from re-contracting at higher rates, growth projects and the Bayou Ethane acquisition. The balance sheet grew, with total assets of $80.906 billionc at March 31, 2024 versus $79.197 billion at December 31, 2023, and total equity of $16.998 billion versus $16.525 billion. Long-term debt increased to $8.425 billion from $7.919 billion and short-term debt to $1.678 billion from $1.084 billion.
Net cash provided by operating activities was $198 milliond, down from $719 million a year earlier. Parent Company cash and investments, net of receivables and payables, totaled $3.2 billion, up from $2.6 billion at year-end 2023, supported by $656 million of subsidiary dividends including a $497 million special dividend from CNA. CNA and Boardwalk Pipelines each issued senior notes in February 2024 ($500 million due 2034 and $600 million due 2034, respectively) to refinance maturing debt.
The company repurchased 0.2 million shares for $17 million during the quarter. The filing notes ongoing Boardwalk Pipelines litigation, where a hearing on remanded issues was held at the Trial Court in April 2024, and states that management does not believe other litigation will materially affect results of operations or equity.
02—Key points
Key Highlights
- Net income attributable to Loews Corporation was $457 million, or $2.05 per share, versus $375 million, or $1.61 per share, a year earlier.
- Total revenues were $4.231 billion versus $3.783 billion, with insurance premiums of $2.441 billion versus $2.248 billion.
- CNA Financial net income attributable to Loews rose to $310 million from $268 million, aided by net investment income of $609 million versus $525 million.
- Boardwalk Pipelines net income attributable to Loews rose to $121 million from $86 million; EBITDA was $307 million versus $256 million.
- Total equity increased to $16.998 billion and total assets to $80.906 billion at March 31, 2024.
- Total debt rose, with long-term debt at $8.425 billion and short-term debt at $1.678 billion, after CNA and Boardwalk Pipelines senior note offerings in February 2024.
- Operating cash flow fell to $198 million from $719 million, while Parent Company cash and investments reached $3.2 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 6, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $4.23B$3.78B | +11.8% |
| Interest Expense | $103.00M$95.00M | +8.4% |
| Net Income | $457.00M$375.00M | +21.9% |
| EPS (Basic) | $2.05$1.61 | +27.3% |
| EPS (Diluted) | $2.05$1.61 | +27.3% |
| Shares Outstanding (Basic) | 222.47M233.30M | −4.6% |
| Shares Outstanding (Diluted) | 222.78M233.62M | −4.6% |
05—Questions
Frequently Asked Questions
What drove the increase in Loews' first-quarter 2024 earnings?
Net income attributable to Loews Corporation rose to $457 million from $375 million, primarily due to higher net income at CNA Financial, which benefited from higher net investment income and favorable net prior year loss reserve development, and at Boardwalk Pipelines, which benefited from re-contracting at higher rates and recently completed growth projects.
How did catastrophe losses affect CNA in the quarter?
Catastrophe losses for CNA's Property & Casualty Operations were $88 million for the three months ended March 31, 2024, compared with $52 million in the comparable 2023 period, primarily related to severe weather related events. Higher catastrophe losses partially offset the earnings improvement at CNA.
What debt activity did the company complete in the quarter?
In February 2024, CNA issued $500 million of 5.1% senior notes due 2034 and intends to use the proceeds to retire its $550 million of 4.0% senior notes due May 2024. Boardwalk Pipelines issued $600 million of 5.6% senior notes due 2034 to retire its $600 million of 5.0% notes due December 2024.
What is the status of the Boardwalk Pipelines litigation?
The Trial Court ruled in November 2021 that the General Partner breached the Limited Partnership Agreement and awarded plaintiffs approximately $690 million plus pre-judgment interest of approximately $166 million. The Delaware Supreme Court reversed that ruling in December 2022 and remanded the case for further proceedings, and a hearing on the remanded issues was held at the Trial Court in April 2024.
How much cash did the Parent Company have and receive from subsidiaries?
Parent Company cash and investments, net of receivables and payables, totaled $3.2 billion at March 31, 2024, up from $2.6 billion at December 31, 2023. During the quarter, the Parent Company received $656 million in cash dividends from subsidiaries, including a special cash dividend of $497 million from CNA and a $50 million distribution from Boardwalk Pipelines.
06—Continue