01—Abstract
Summary
Summary of the 10-Q filed November 4, 2024. Cited figures are marked; the original filing is the authoritative source.
Loews Corporation reported net income attributable to Loews Corporation of $401 milliona, or $1.82 per diluted share, for the three months ended September 30, 2024, compared with $253 million, or $1.12 per share, in the prior-year period.
For the nine months, net income attributable to Loews was $1.227 billionb, or $5.54 per diluted share, versus $988 million, or $4.31 per share, a year earlier. Total revenues were $4.466 billion for the quarter and $12.964 billion for the nine months. The company is a holding company whose segments are CNA Financial (commercial property and casualty insurance, approximately 92% owned), Boardwalk Pipelines (wholly owned, natural gas and NGL transportation and storage), Loews Hotels & Co (wholly owned hotels), and Corporate.
CNA drove most of the earnings, with net income attributable to Loews of $860 millionc for the nine months, and Boardwalk Pipelines contributed $268 million. The balance sheet showed total assets of $83.617 billion and total shareholders' equity of $17.357 billion at September 30, 2024, up from $79.197 billion and $15.704 billion at December 31, 2023. Parent Company cash and investments, net of receivables and payables, totaled $3.3 billion.
Catastrophe losses for Property & Casualty Operations were $143 milliond for the quarter, including $55 million from Hurricane Helene, and $313 million for the nine months. Subsequent to quarter end, CNA's pension plan trust purchased a group annuity transferring approximately $1.045 billion of pension obligations, which the company expects to produce a one-time non-cash pretax settlement charge of approximately $370 million in the fourth quarter of 2024. The company also estimated pretax net catastrophe losses from Hurricane Milton of approximately $25 million to $55 million for the fourth quarter.
On legal matters, the Boardwalk Pipelines class action remains active: in September 2024 the Delaware Trial Court ruled in favor of the defendants on all remanded issues, and plaintiffs appealed to the Delaware Supreme Court on October 21, 2024. The company stated that management does not believe the outcome of pending litigation, including this matter, will materially affect its results of operations or equity.
02—Key points
Key Highlights
- Net income attributable to Loews Corporation rose to $401 million ($1.82 per diluted share) in Q3 2024 from $253 million ($1.12 per share) in Q3 2023, and to $1.227 billion ($5.54 per share) for the nine months from $988 million ($4.31 per share).
- CNA Financial contributed $259 million of Q3 net income attributable to Loews, up from $235 million, driven mainly by higher net investment income, partially offset by higher catastrophe losses of $143 million versus $94 million a year earlier.
- Boardwalk Pipelines' net income attributable to Loews increased to $77 million in Q3 from $49 million, and EBITDA rose to $249 million from $202 million, reflecting re-contracting at higher rates, growth projects and the Bayou Ethane acquisition.
- Loews Hotels & Co posted a Q3 net loss attributable to Loews of $8 million versus income of $17 million, primarily due to an impairment charge recorded by a joint venture property.
- Total assets grew to $83.617 billion at September 30, 2024 from $79.197 billion at December 31, 2023, while total shareholders' equity increased to $17.357 billion from $15.704 billion.
- Long-term debt increased to $8.821 billion from $7.919 billion, with CNA issuing $500 million of 5.1% senior notes due 2034 and Boardwalk Pipelines issuing $600 million of 5.6% senior notes due 2034.
- A subsequent-event pension annuity transfer by CNA's plan is expected to result in a one-time non-cash pretax settlement charge of approximately $370 million in Q4 2024, with no cash flow impact in that period.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 4, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $4.47B$3.93B | +13.8% |
| Interest Expense | $114.00M$94.00M | +21.3% |
| Net Income | $401.00M$253.00M | +58.5% |
| EPS (Basic) | $1.83$1.12 | +63.4% |
| EPS (Diluted) | $1.82$1.12 | +62.5% |
| Shares Outstanding (Basic) | 219.67M225.64M | −2.6% |
| Shares Outstanding (Diluted) | 219.94M225.99M | −2.7% |
05—Questions
Frequently Asked Questions
How did Loews Corporation's earnings change in the third quarter of 2024?
Net income attributable to Loews Corporation was $401 million, or $1.82 per diluted share, versus $253 million, or $1.12 per share, in the third quarter of 2023. The increase was primarily driven by higher net income at CNA and Boardwalk Pipelines and higher investment income at the parent company, partially offset by lower results at Loews Hotels & Co.
What is the expected impact of the CNA pension settlement transaction?
In October 2024, a CNA subsidiary, as sponsor of the CNA Employee Retirement Plan Trust, purchased a group annuity contract transferring approximately $1.045 billion of defined benefit pension obligations to Metropolitan Life Insurance Company. The company expects a one-time non-cash pretax pension settlement charge of approximately $370 million ($265 million after tax and noncontrolling interests) in the fourth quarter of 2024. The charge will not affect shareholders' equity or cash flow for the fourth quarter or full year 2024.
How much did catastrophe losses affect results, and what is the outlook for Hurricane Milton?
Catastrophe losses, net of reinsurance, were $143 million for the third quarter of 2024 versus $94 million in the prior-year quarter, including $55 million related to Hurricane Helene. For the nine months, catastrophe losses were $313 million versus $214 million. Following Hurricane Milton's landfall in Florida on October 9, 2024, pretax net catastrophe losses are currently estimated at approximately $25 million to $55 million, to be reflected in fourth-quarter 2024 results.
What is the status of the Boardwalk Pipelines litigation?
In September 2024, the Delaware Trial Court ruled in favor of the defendants on all remanded issues in the class action originally filed in 2018 regarding the General Partner's 2018 purchase of common units. On October 21, 2024, the plaintiffs appealed that ruling to the Delaware Supreme Court. The company stated that management does not believe the outcome of pending litigation, including this matter, will materially affect its results of operations or equity.
How did Loews's liquidity and capital return activity look for the first nine months of 2024?
The Parent Company received $975 million in cash dividends from subsidiaries, including a special $497 million dividend from CNA and $150 million in distributions from Boardwalk Pipelines. Parent Company cash and investments, net of receivables and payables, totaled $3.3 billion at September 30, 2024, up from $2.6 billion at year-end 2023. The company used $262 million for treasury stock purchases and paid $42 million in dividends to shareholders. As of November 1, 2024, the company had repurchased 4.6 million shares in 2024 for $353 million.
06—Continue